Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q1 2017 Earnings Presentation
22 slides from Mtu Aero Engines's earnings presentation, Apr 28, 2017
Slide 1: Q1 2017 Results
Q1 2017 Results Conference Call with Investors and Analysts 28 April 2017 – Investor Relations
Slide 2: Business Highlights Q1 2017
Business Highlights Q1 2017 • Passenger traffic up 7% ytd in Feb. 2017 • Geared Turbofan (GTF) ramp up on track • MRO JV with Lufthansa Technik for GTF engines signed • Contract wins for independent MRO of 1 bn US$ • New record quarter in terms of MRO revenues • Guidance 2017 confirmed • Dividend pr
Slide 3: Financial Highlights Q1 2017
Financial Highlights Q1 2017 Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 1.500 200 14% 12,0% 12,4% +15% 12% 1.261 157 10% 1.000 1.098 131 8% 100 6% 500 +20% 4% 2% 0 0 0% 3M 2016 3M 2017 3M 2016 3M 2017 Net Income adj. / EPS adj. (m€ / €) Free Cash Flow (m€) 200 2,50 100 2,16 94 -35% 1,79 2,0
Slide 4: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of April 28, 2017 (% of net exposure) (in m US$) 957 (=79%) 690 (=51%) 270 (=18%) 2017 2018 2019 Average hedge rate (US$/€) 1.18 1.13 1.12 4 4/28/2017 Q1 2017 Results © MTU Aero Engines AG. The information contained herein is proprietary to the MTU A
Slide 5: Update on PW1000G-JM engine family
Update on PW1000G-JM engine family • >50 A320neo equipped with PW1100G-JM engines in operation • 10 C Series powered by PW1500G engines entered flawlessly into the market • GTF engines performed over 150,000 flight hours • GTF dispatch reliability over 99% • Fuel consumption reduced by 16%, noise fo
Slide 6: OEM Segment
OEM Segment Order book 31/12/2016 31/03/2017 Change Order book (m€) 7.246,0 6.940,3 -4% Commercial Business (mUS$) 7.113,6 6.949,8 -2% Military Business (m€) 497,5 439,7 -12% (m€) 3M 2016 3M 2017 Change Revenues 680,5 694,3 2% Commercial Business 556,0 611,4 10% Military Business 124,5 82,9 -33% EBI
Slide 7: Commercial MRO Business
Commercial MRO Business (mUS$) 31/12/2016 31/03/2017 Change Order book 7.300,9 7.916,3 8% (m€) 3M 2016 3M 2017 Change Revenues 428,8 588,4 37% EBIT adj. 42,3 52,1 23% EBIT adj. Margin % 9,9% 8,9% • Organic revenues up 32% • EBIT margin at 8.9% 4/28/2017 Q1 2017 Results 7 © MTU Aero Engines AG. The i
Slide 8: Guidance 2017 confirmed
Guidance 2017 confirmed Military: Down high single digit New engine Sales (Com. OE): Up high single digit Spare parts Sales (Com. Spares): Up mid single digit Commercial MRO: Up ~10% Revenues ~ 5.1 – 5.2 bn € Tailwind from US$ fx-rate Slight headwind from business mix EBIT adj. Stable margin Lower i
Slide 9: Appendix
Appendix 4/28/2017 Q1 2017 Results 9 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 10: Profit & Loss
Appendix Profit & Loss (m€) 3M 2016 3M 2017 Change Revenues 1.097,9 1.261,3 15% Total Cost of Sales -928,2 -1.071,2 Gross Profit 169,7 190,1 12% Gross Profit Margin 15,5% 15,1% R&D according to IFRS -19,4 -15,1 SG&A -41,6 -43,0 Other operating income (expense) 1,7 0,4 P&L of companies accounted "at
Slide 11: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (m€) 3M 2016 3M 2017 Change EBIT reported 118,7 144,2 21% Adjustment (PPA Depreciation & Amortization) 5,3 5,3 Adjustment (IAE Upshare) 7,3 7,5 EBIT adj. 131,3 157,0 20% Thereof P&L of companies accounted "at equity" 8,3 11,7 41% Interes
Slide 12: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (m€) 3M 2016 3M 2017 Change Revenues Group 1.097,9 1.261,3 15% OEM Commercial 556,0 611,4 10% OEM Military 124,5 82,9 -33% MRO 428,8 588,4 37% Consolidation -11,4 -21,4 EBIT adj. Group 131,3 157,0 20% OEM (Commercial / Military) 88,8 104,4 18% MRO 42,3 52,1 23
Slide 13: Research & Development
Appendix Research & Development (m€) 3M 2016 3M 2017 Change Total R&D 58,6 56,1 -4% Customer funded R&D -8,1 -11,2 -38% Company expensed R&D 50,5 44,9 -11% thereof OEM 49,3 44,0 thereof MRO 1,2 0,9 Capitalization of R&D -31,1 -29,8 thereof OEM -31,1 -29,5 thereof MRO 0,0 -0,3 R&D according to IFRS (
Slide 14: Financial Result
Appendix Financial Result (m€) 3M 2016 3M 2017 Change Interest Income 0,2 1,0 >300% Interest Expense -1,9 -3,3 -74% Interest Result* -1,7 -2,3 -35% Financial Result on other items 2,8 -7,0 thereof interests for pension obligations* -4,1 -3,1 thereof fair value gains/losses on derivatives 8,7 0,2 Fin
Slide 15: MTU’s Cash development January – March 2017
Appendix MTU’s Cash development January – March 2017 46 Free Cashflow: +61,0 -74,5 132,7 0 2,8 0 -12,8 0,6 -2,8 368,4 322,4 Adjusted Non-operating exceptional items: +2,8 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash Operating Investing liquidi
Slide 16: Cash Flow
Appendix Cash Flow (m€) 3M 2016 3M 2017 Change Net Income IFRS 90,4 104,4 15% Depreciation and amortization 45,2 48,6 Change in provisions 69,9 31,9 Change in Working Capital -46,9 -33,1 Taxes -8,0 6,7 Interest, derivatives, others -23,2 -25,8 Cash Flow from operating activities 127,4 132,7 4% Net I
Slide 17: Net financial debt at 832 m€
Appendix Net financial debt at 832 m€ (m€) 31/12/2016 31/03/2017 Change Bonds and notes 353,6 356,4 Convertible bond 474,6 475,8 Financial liabilities to bank 30,1 30,2 thereof Revolving Credit Facility 0,0 0,2 thereof Note Purchase Agreement 30,1 30,0 Loans from related companies 0,0 1,7 Finance le
Slide 18: Working Capital
Appendix Working Capital (m€) 31/12/2016 31/03/2017 Change Change in % Gross inventories 1.022,7 1.061,7 39,0 Prepayments -344,2 -359,7 -15,5 Receivables 1.148,2 1.149,8 1,6 Payables -811,0 -803,0 8,0 Working Capital 1.015,7 1.048,8 33,1 3% 4/28/2017 Q1 2017 Results 18 © MTU Aero Engines AG. The inf
Slide 19: Balance Sheet
Appendix Balance Sheet (m€) 31/12/2016 31/03/2017 Change Intangible Assets 2.234,2 2.272,8 Property, Plant, Equipment 681,5 676,2 other Non-current assets 390,7 421,5 Total Non-Current assets 3.306,4 3.370,5 2% Current assets 2.538,2 2.610,6 3% Total assets 5.844,6 5.981,1 2% Equity 1.500,5 1.649,9
Slide 20: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) (in m€) 3M 2016 3M 2017 Total depreciation / amortization OEM 33,5 36,7 MRO 8,3 10,1 MTU total 41,8 46,8 PPA depreciation / amortization & IAE Upshare amortization (EBIT adjustments) PPA OEM 4,7 4,7 PPA MRO 0,6 0,6 IAE Upshare OEM 7,3 7,5 MTU total 12
Slide 21: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could
Slide 22: Proprietary Notice
Proprietary Notice This document contains proprietary information of the MTU Aero Engines AG group companies. The document and its contents shall not be copied or disclosed to any third party or used for any purpose other than that for which it is provided, without the prior written agreement of MTU