MTU Aero Engines AG · XETR:MTX
MTU Aero Engines — FY2009 Earnings Presentation
27 slides from MTU Aero Engines's earnings presentation, Feb 24, 2010
Slide 1: Annual Results 2009 - MTU Aero Engines
Annual Results 2009 - MTU Aero Engines Conference Call with Investors and Analysts - Preliminary Results - February 24, 2010
Slide 2: Contents
Contents 1. Operational & Financial Highlights 2. Divisional Performance 3. Group Key Figures 4. Appendix February 24, 2010 2009 Annual Results - MTU Aero Engines 2
Slide 3: FY 2009 Key Business Topics
FY 2009 Key Business Topics • After a very bad year 2009, the market is showing an improvement trend: - International passenger traffic grew by 4.5% yoy in Dec. 09 (IATA) Market - Cargo traffic grew by 24.4% yoy in Dec. 2009 (IATA) Environment • Load factors and yields have started to improve; for 2
Slide 4: FY 2009 Financial Overview
FY 2009 Financial Overview Order Backlog • Group order backlog increased by 3% € 4,150.9 m • Group revenues decreased by 4% to € 2,610.8 m Revenues • US$ underlying decrease by 8% EBIT adj. • Group EBIT adj. reached € 292.3 m or 11.2% margin Cash Flow • Free cash flow at € 120.2 m Net • Net income r
Slide 5: Guidance 2009 achieved
Guidance 2009 achieved in m€ FY 2009 Guidance 2009 Revenues 2.611 ~ 2,600 EBIT adj. 292 ~ 290 EBIT adj. margin 11.2% ~ 11% Free Cash Flow 120 ~ 100 Net income reported 141 ~ 140 February 24, 2010 2009 Annual Results - MTU Aero Engines 5
Slide 6: Contents
Contents 1. Operational & Financial Highlights 2. Divisional Performance 3. Group Key Figures 4. Appendix February 24, 2010 2009 Annual Results - MTU Aero Engines 6
Slide 7: OEM Segment
OEM Segment 31.12.2009 31.12.2008 Change Order backlog in m€ 3,965.1 3,884.5 2% Order backlog • US$ Commercial Business order book Commercial Business in m$ 3,662.3 3,363.6 9% increased by 9% Military Business in m€ 1,422.9 1,467.6 -3% in m€ FY 2009 FY 2008 Change Revenues Revenues 1,585.7 1,642.9 -
Slide 8: MRO Segment
MRO Segment in m US$ 31.12.2009 01.01.2009 Change Contract volume MRO in mUS$ 6,759.6 7,278.3 -7% Contract Volume • Decreased by 7% as a result of contract Order backlog in mUS$ 267.7 182.9 46% execution in m€ FY 2009 FY 2008 Change Revenues 1,057.6 1,113.0 -5% Revenues • Decrease of 5% in €, decrea
Slide 9: Contents
Contents 1. Operational & Financial Highlights 2. Divisional Performance 3. Group Key Figures 4. Appendix February 24, 2010 2009 Annual Results - MTU Aero Engines 9
Slide 10: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of February 24, 2010 (% of net exposure) m US$ 700 (=85%) 620 400 (=72%) (=41%) 100 (=9%) 2009 2010 2011 2012 1.42 1.43 1.42 1,39 Average hedge rate (US$/EUR) February 24, 2010 2009 Annual Results - MTU Aero Engines 10
Slide 11: Financial Result
Financial Result in m€ FY 2009 FY 2008 Change Profit/loss from at equity accounted -1.5 -1.0 companies Interest Result -13.1 -10.8 -21% Interest income 2.6 6.4 Interest payments -15.7 -17.2 Other Financial Result -24.8 -38.7 36% Gains/losses out of US$ cash/financing/ -11.3 -4.4 capital lease valuat
Slide 12: EBIT adj., Net Income and EPS
EBIT adj., Net Income and EPS in m€ FY 2009 FY 2008 Change EBIT adj. 292.3 331.0 -12% EBIT adj. margin 11.2% 12.1% PPA depreciation -45.4 -82.7*) EBIT reported 246.9 248.3 -1% Financial result -39.4 -50.5 EBT 207.5 197.8 5% Income taxes -66.5 -18.1 Net income 141.0 179.7 -22% EPS in € 2.89 3.64 Avg.
Slide 13: Cash Flow
Cash Flow in m€ FY 2009 FY 2008 Change Cash Flow from operating activities 252.7 405.8 -38% Cash Flow from investing activities -132.5 -282.2 53% Free Cash Flow 120.2 123.6 -3% Cash Flow from financing activities -68.9 -127.4 46% Effect of exchange rate on cash and cash -0.4 6.4 equivalents Change i
Slide 14: Net Financial Debt
Net Financial Debt in m€ 31.12.2009 31.12.2008 Change Change in % Convertible bond (incl. interests) 148.9 145.4 Revolving Credit Facility 0.0 61.2 Promissory notes (Schuldscheindarlehen) 65.4 Other Bank credits 14.6 21.3 Finance lease liabilities 25.8 34.0 Loan British Columbia to MTU Maintenance 1
Slide 15: Guidance 2010
Guidance 2010 in m€ FY 2009 Guidance 2010 Revenues 2.611 stable EBIT adj. 292 stable EBIT adj. margin 11.2% stable Free Cash Flow 120 ~ 100 Net income 141 stable February 24, 2010 2009 Annual Results - MTU Aero Engines 15
Slide 16: Contents
Contents 1. Operational & Financial Highlights 2. Divisional Performance 3. Group Key Figures 4. Appendix February 24, 2010 2009 Annual Results - MTU Aero Engines 16
Slide 17: Profit & Loss
Appendix Profit & Loss in m€ Q4 2009 Q4 2008 Change FY 2009 FY 2008 Change Revenues 655.9 741.4 -12% 2,610.8 2,724.3 -4% Total cost of sales -523.5 -598.3 13% -2.152.2 -2,240.8 4% Gross profit 132.4 143.1 -7% 458.6 483.5 -5% Gross profit margin 20.2% 19.3% 17.6% 17.7% R & D acc. to P&L -34.1 -37.4 -
Slide 18: Revenues / Cost of Sales / Gross Profit
Appendix Revenues / Cost of Sales / Gross Profit in m€ Q4 2009 Q4 2008 Change FY 2009 FY 2008 Change Revenues 655.9 741.4 -12% 2,610.8 2,724.3 -4% OEM Commercial 262.8 304.9 -14% 1,053.7 1,146.3 -8% OEM Military 165.3 141.7 17% 532.0 496.6 7% MRO 236.4 305.1 -23% 1,057.6 1,113.0 -5% Consolidation -8
Slide 19: EBIT reported / adjusted
Appendix EBIT reported / adjusted in m€ Q4 2009 Q4 2008 Change FY 2009 FY 2008 Change EBIT reported 70.4 45.6 54% 246.9 248.3 -1% OEM 61.0 26.2 133% 188.5 202.1 -7% MRO 8.6 20.8 -59% 60.6 49.7 22% Consolidation 0.8 -1.4 -2.2 -3.5 EBIT adjusted 81.5 92.1 -12% 292.3 331.0 -12% OEM 71.0 71.5 -1% 229.2
Slide 20: Research & Development
Appendix Research & Development in m€ Q4 2009 Q4 2008 Change FY 2009 FY 2008 Change Company expensed R&D 43.0 41.2 4% 123.0 101.1 22% OEM 39.2 38.4 109.4 93.8 MRO 3.8 2.8 13.6 7.3 Capitalisation of R&D -8.9 -3.8 -17.4 -6.2 OEM -7.2 -2.0 -12.6 -2.8 MRO -1.7 -1.8 -4.8 -3.4 R&D according to IFRS 34.1 3
Slide 21: EBITDA reported / adjusted
Appendix EBITDA reported / adjusted in m€ Q4 2009 Q4 2008 Change FY 2009 FY 2008 Change EBITDA reported 105.3 112.7 -7% 373.3 408.5 -9% OEM (commercial / military) 88.5 85.4 4% 285.5 333.1 -14% MRO 16.0 28.7 -44% 90.0 78.9 14% Consolidation 0.8 -1.4 -2.2 -3.5 EBITDA adjusted 98.1 110.7 -11% 360.7 40
Slide 22: Financial Result
Appendix Financial Result in m€ Q4 2009 Q4 2008 Change FY 2009 FY 2008 Change Profit / Loss from at equity -1.0 -1.0 -1.5 -1.0 accounted companies Interest Result -3.3 -2.0 -65% -13.1 -10.8 -21% Interest Income 1.8 1.4 2.6 6.4 Interest Payments -5.1 -3.4 -15.7 -17.2 Other Financial Result -3.6 -21.3
Slide 23: Cash Flow
Appendix Cash Flow in m€ Q4 2009 Q4 2008 Change FY 2009 FY 2008 Change Net income IFRS 47.6 61.1 -22% 141.0 179.7 -22% Depreciation and amortization 33.8 67.1 125.3 160.2 Change in Provisions *) -27.4 14.6 -36.8 -5.6 Change in Working Capital 19.1 70.7 33.9 98.5 Taxes 1.2 -51.5 7.5 -42.2 Interest, d
Slide 24: Working Capital
Appendix Working Capital in m€ 31.12.2009 31.12.2008 Change Change in % Gross inventories 648.7 661.4 12.7 Prepayments -607.0 -520.6 86.4 Receivables 525.1 642.2 117.1 Payables -419.2 -601.5 -182.3 Working Capital 147.6 181.5 33.9 19% February 24, 2010 2009 Annual Results - MTU Aero Engines 24
Slide 25: PPA Depreciation / Amortisation (in m€)
Appendix PPA Depreciation / Amortisation (in m€) Total depreciation / amortisation Q4 2009 Q4 2008 FY 2009 FY 2008 MTU total 34.9 67.1 126.4 160.2 OEM 27.5 59.2 97.0 131.0 MRO 7.4 7.9 29.4 29.2 PPA depreciation / amortisation Q4 2009 Q4 2008 FY 2009 FY 2008 MTU total 11.1 46.5 45.4 82.7 OEM 10.0 45.
Slide 26: Guidance for PPA Depreciation and Amortisation (in m€)
Appendix Guidance for PPA Depreciation and Amortisation (in m€) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 84.7 67.4 54.6 82.7*) 45.4 43.7 42.9 38.1 37.3 24.2 *) includes extraordinary write-off GE old programs 35.2m€ February 24, 2010 2009 Annual Results - MTU Aero Engines 26
Slide 27: 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