Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — FY2021 Earnings Presentation
26 slides from Mtu Aero Engines's earnings presentation, Feb 16, 2022
Slide 1: Preliminary Full Year Results 2021
Preliminary Full Year Results 2021 Conference call with Investors & Analysts February 16th, 2022
Slide 2: Passenger traffic further improved, Cargo traffic above Pre-Covid levels
Passenger traffic further improved, Cargo traffic above Pre-Covid levels Passenger traffic *) Cargo traffic *) • Passenger traffic improved, but still below 2019 Pre-Covid levels • Very robust cargo traffic above 2019 levels • Domestic traffic continued to improve, but with regional differences • IA
Slide 3: 2021 Review
2021 Review GTF Advantage Engine introduced Over 1,200 GTF orders in 2021 500th GTF engine assembled • Extends benefits of existing GTF engine • Qantas chose GTF to power their newly ordered • In May the 500th GTF engine was assembled at • Fuel consumption and respective CO² emission 40 A321XLR and
Slide 4: 2021 Review
2021 Review Groundbreaking for MTU Zhuhai II MTU Serbia - constructions started MRO contract wins of ~4.6 bn US$ • Celebration of groundbreaking of new site in • Construction on new parts repair shop in Serbia • Independent MRO campaign wins of ~ 4.6 bn Jinwan, China in Sept started in July 2021 US$
Slide 5: 2021 Review
2021 Review Military Highlights Dividend proposal New Supervisory Board member • Foundation of EUMET for NEFE in April 2021 - • Dividend proposal* to be approved by the • Proposal of Gordon Riske as new Supervisory 50:50 JV between Safran and MTU; ITP main AGM on May 5th : Board member to AGM on May
Slide 6: Financial Highlights 2021
Financial Highlights 2021 Revenues EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€) (in m€) 468 4,188 (11.2%) +5% 3,977 416 +13% (10.5%) 342 +16% 294 240 +130% 105 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 16 February 2022 FY 2021 Results - Investor Relation
Slide 7: Full year results broadly in line with our Guidance 2021
Full year results broadly in line with our Guidance 2021 Guidance 2021 Actuals 2021 Revenues ~ 4.3 - 4.4 bn€ 4.2 bn€ EBIT adj. margin ~ 10.5 (~ 452 - 462 m€) 11.2% (468 m€) Net Income adj. Growth in line with EBIT adj. 342 m€ CCR* High double digit % 70% (240 m€) 16 February 2022 FY 2021 Resul
Slide 8: OEM Segment
OEM Segment (in m €) FY 2020 FY 2021 Change Revenues 1,535 1,547 1% Military Business 483 482 0% Commercial Business 1,052 1,066 1% EBIT adj. 280 320 14% EBIT adj. margin % 18.2% 20.7% • US$ Commercial revenues up by 5% • Military revenues stable • EBIT margin up due to business mix 16 February 2022
Slide 9: Commercial MRO
Commercial MRO (in m €) FY 2020 FY 2021 Change Revenues 2,522 2,741 9% EBIT adj. 136 149 9% EBIT adj. margin % 5.4% 5.4% • US$ Revenues up by 13% • EBIT margin stable 16 February 2022 FY 2021 Results - Investor Relations 9 © MTU Aero Engines AG. The information contained herein is proprietary to the
Slide 10: Guidance 2022 confirmed
Guidance 2022 confirmed Organic revenue Military Commercial OE Up high single digit % Up mid to high teens % Total Group Sales: EBIT adj. OE 5.2 – 5.4 bn € Up mid twenties % MRO Net Income adj. CCR Growth in line Mid to high with EBIT adj. double digit % Commercial Spares Commercial MRO Up mid teens
Slide 11: Appendix
Appendix 16 February 2022 FY 2021 Results - Investor Relations 11 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 12: Group Order Book up 20%
Appendix Group Order Book up 20% 22.2 bn€ +20% 18.6 bn€ Order book 2020/12/31 Order book 2021/12/31 16 February 2022 FY 2021 Results - Investor Relations 12 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 13: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of February 16th, 2022 in m$ 1,200 1,160 900 560 40 2021 2022 2023 2024 2025 Average hedge rate (€/US$) 1.18 1.17 1.18 1.19 1.18 16 February 2022 FY 2021 Results - Investor Relations 13 © MTU Aero Engines AG. The information contained herein
Slide 14: Profit & Loss
Appendix Profit & Loss (in m €) Q4 2020 Q4 2021 Change FY 2020 FY 2021 Change Revenues 1,020 1,180 16% 3,977 4,188 5% Total cost of sales -946 -1,058 -3,484 -3,601 Gross profit 74 122 64% 492 586 19% Gross profit margin % 7.3% 10.3% 12.4% 14.0% R&D according to IFRS -20 -24 -61 -83 SG&A -51 -60 -225
Slide 15: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) Q4 2020 Q4 2021 Change FY 2020 FY 2021 Change EBIT reported 22 67 206% 262 355 35% Adjustment (PPA Depreciation & Amortization) 5 5 21 21 Adjustment (IAE Upshare) 6 6 27 23 Adjustment (Vericor sale) 0 0 0 -13 Adjustment (Restruc
Slide 16: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (in m €) Q4 2020 Q4 2021 Change FY 2020 FY 2021 Change Revenues Group 1,020 1,180 16% 3,977 4,188 5% OEM Commercial 202 300 49% 1,052 1,066 1% OEM Military 187 172 -8% 483 482 0% MRO 656 731 11% 2,522 2,741 9% Consolidation -24 -24 -80 -101 EBIT adjusted Group
Slide 17: Research & Development
Appendix Research & Development (in m €) Q4 2020 Q4 2021 Change FY 2020 FY 2021 Change Total R&D 46 68 46% 186 230 24% Customer funded R&D -12 -24 -101% -33 -70 -113% Company expensed R&D 35 44 27% 153 160 5% Capitalization of R&D -7 -15 -58 -49 Amortisation 6 7 24 25 Impairment 0 45 0 45 Total R&D
Slide 18: Financial Result
Appendix Financial Result (in m €) Q4 2020 Q4 2021 Change FY 2020 FY 2021 Change Interest income 1 0 -44% 3 1 -47% Interest expense -7 -7 4% -22 -30 -36% Interest result -6 -6 -2% -20 -29 -47% Financial result on other items -14 1 -47 -10 US$ / non cash valuations / others -12 3 -38 -4 Interest for
Slide 19: MTU's Cash development January – December 2021
Appendix MTU’s Cash development January – December 2021 -51 Free Cashflow: +240 -345 27 -30 21 567 -276 3 -18 773 722 Adjusted Non-operating exceptional items: +18 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Fina
Slide 20: Cash Flow
Appendix Cash Flow (in m €) FY 2020 FY 2021 Change Net Income IFRS 147 231 57% Depreciation and amortization 352 358 Change in provisions and liabilities -112 -79 Change in working capital -25 50 Taxes 27 -22 Interest, derivatives, others -3 30 Cash Flow from operating activities 386 567 47% Net Inv
Slide 21: Net debt
Appendix Net debt (in m €) 31.12.2020 31.12.2021 Change Bonds and notes 603 604 Convertible bonds 538 529 Promissory note 100 0 Financial liabilities to bank 30 0 thereof Revolving Credit Facility 0 0 thereof bonds and notes 30 0 Financial lease liabilities 177 176 Financial liabilities arising from
Slide 22: Working capital
Appendix Working capital (in m €) 31.12.2020 31.12.2021 Change Inventories 1,279 1,380 Prepayments -457 -398 Receivables 1,949 2,073 Payables -1,236 -1,654 Working Capital 1,535 1,401 -9% 16 February 2022 FY 2021 Results - Investor Relations 22 © MTU Aero Engines AG. The information contained herein
Slide 23: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2020 31.12.2021 Change Intangible assets 1,135 1,128 Property, plant, equipment 1,161 1,251 other non-current assets 1,733 1,664 Total non-current assets 4,030 4,043 0% Current assets 4,074 4,260 5% Total assets 8,104 8,304 2% Equity 2,635 2,760 5% Non-current l
Slide 24: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization (in m €) Q4 2020 Q4 2021 Change FY 2020 FY 2021 Change OEM 122 136 264 285 MRO 25 18 86 72 Total depreciation / amortization* 147 154 5% 350 357 2% PPA OEM 5 5 18 18 PPA MRO 1 1 2 2 IAE Upshare OEM 6 6 27 23 PPA depreciation / amortization & IAE Upshare amort
Slide 25: Guidance for PPA and IAE Upshare Amortization; Guidance for R&D Amortization
Appendix Guidance for PPA and IAE Upshare Amortization (in m€) 2021 2022E 2023E 2024E PPA depreciation / amortization 21 20 19 19 IAE Upshare 23 24 24 24 Adjustments PPA / IAE Upshare 43 44 42 42 Guidance for R&D Amortization (in m€) 2021 2022E 2023E 2024E R&D amortization 25 28 30 35 16 February 20
Slide 26: 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