Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q3 2013 Earnings Presentation
26 slides from Mtu Aero Engines's earnings presentation, Oct 23, 2013
Slide 1: Q3 2013 Results - MTU Aero Engines
Q3 2013 Results - MTU Aero Engines Conference Call with Investors and Analysts, 23 October 2013
Slide 2: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 23 October 2013 Investor Relations - Q3 2013 Results 2
Slide 3: Business Highlights
Business Highlights • First flight C-Series • Good trading in Q3 /13 • Guidance 2013 confirmed Global Passenger Traffic Market Environment 30% • Global passenger traffic up 6.8% y-o-y in 500 August (5.1% ytd) 20% • Growth was led by Middle-East (14.1% y-o-y), 400 and by Asia/Pacific 10.4% 10% 300 •
Slide 4: Commercial OEM Business
Commercial OEM Business • Over 4,700 GTF engines on order incl. options* • PW1500G engines successfully powered Bombardier’s CSeries aircraft on its maiden flight in September • New engine sales up high single digit y-o-y • Spare parts sales up low single digit y-o-y *) number includes announced and
Slide 5: Commercial MRO Business and Military Business
Commercial MRO Business • Contract wins of ~ US$ 1 bn in 9M 2013 • Expanding lease engine business with Sumitomo Corporation • First GE90 shop visit successfully completed • MRO US$-revenues flat y-o-y Military Business • First A400M aircraft delivered to France • Ramp up of TP400-D6 series producti
Slide 6: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 23 October 2013 Investor Relations - Q3 2013 Results 6
Slide 7: Financial Highlights
Financial Highlights Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 2.800 +13% 11,3% 2.778 9,7% 2.400 2.468 300 -3% 10% 2.000 1.600 200 278 271 1.200 05% 800 100 400 0 0 00% 9M 2012 9M 2013 9M 2012 9M 2013 Net Income adj. / EPS adj. (m€ / €)* Free Cash Flow (m€) 3,41 90 200 3,27 3,50 80 -4% 3,0
Slide 8: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 23 October 2013 Investor Relations - Q3 2013 Results 8
Slide 9: OEM Segment
OEM Segment Order book 31/12/2012 30/09/2013 Change Order book (m€) 5,640.4 5,376.1 -5% Commercial Business (mUS$) 6,218.3 5,986.9 -4% Military Business (m€) 927.4 943.0 2% (m€) 9M 2012 9M 2013 Change Revenues 1,490.3 1,770.9 19% Commercial Business 1,141.9 1,402.9 23% Military Business 348.4 368.0
Slide 10: OEM Segment
OEM Segment (m€) 9M 2012 9M 2013 Change Revenues 1,490.3 1,770.9 19% Gross Profit 293.7 269.7 -8% Gross Profit Margin % 19.7% 15.2% R&D according to IFRS (P&L) 76.8 66.3 -14% EBIT adj. 194.1 186.8 -4% EBIT adj. Margin % 13.0% 10.5% • Gross profit impacted by business mix effects • R&D down by € 10.5
Slide 11: Commercial MRO Business
Commercial MRO Business (mUS$) 31/12/2012 30/09/2013 Change Order Book 7.704,2 7.525,6 -2% (m€) 9M 2012 9M 2013 Revenues 1.001,8 1.030,8 3% Gross Profit 134,8 134,7 0% Gross Profit Margin % 13,5% 13,1% EBIT adj. 85,6 82,4 -4% EBIT adj. Margin % 8,5% 8,0% • Order book down by -2% • US$ revenues up 6%
Slide 12: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 23 October 2013 Investor Relations - Q3 2013 Results 12
Slide 13: P&L Highlights
P&L Highlights (m€) 9M 2012 9M 2013 Change Revenues 2,468.0 2,778.1 13% EBIT adj. 278.0 270.5 -3% Interest Result -2.6 -8.7 Interests for pension provisions -18.6 -15.0 Financial Result * -21.2 -23.7 -12% EBT adj. * 256.8 246.8 -4% Tax (tax rate 32,6% ) -83.7 -80.5 Net Income adj. * 173.1 166.3 -4%
Slide 14: Free Cash Flow
Free Cash Flow Cash Flow (m€) Comments Cash Flow from operating activities 150 • Decreased by €22.2 to € 138.6 m (9M 12: € 160.8 m) 100 139 Cash Flow from investing activities* at € - 72.9 m (9M 12: € -94.5 m) 66 66 • Investment in PPE at € 50.1 m (9M 12: € 63.8 m) 50 • Investment in intangible asse
Slide 15: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of October 23, 2013 (% of net exposure) (mUS$) 825 (=78%) 665 (=68%) 470 (=45%) 150 (=14%) 2013 2014 2015 2016 1.31 1.31 1.27 1.24 Average hedge rate (US$/EUR) 23 October 2013 Investor Relations - Q3 2013 Results 15
Slide 16: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 23 October 2013 Investor Relations - Q3 2013 Results 16
Slide 17: Guidance 2013 confirmed
Guidance 2013 confirmed: (m€) FY 2012 Guidance 2013 new Revenues 3,378.6 ~3,700 (+10%) EBIT adj. 374.3 ~375 EBIT adj. Margin 11.1% ~ 10% Net Income adj. 233.4 ~235 • Series revenues expected to increase by 25% • Spare parts revenues up +5% • Military business roughly stable • MRO expected to be up h
Slide 18: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 23 October 2013 Investor Relations - Q3 2013 Results 18
Slide 19: Profit & Loss
Appendix Profit & Loss (m€) Q3 2012 Q3 2013 Change 9M 2012 9M 2013 Change Revenues 909.0 925.9 2% 2,468.0 2,778.1 13% Total Cost of Sales -754.2 -784.9 -2,032.6 -2,369.7 Gross Profit 154.8 141.0 -9% 435.4 408.4 -6% Gross Profit Margin 17.0% 15.2% 17.6% 14.7% R&D company funded -25.9 -22.6 -79.4 -69.
Slide 20: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. in m€ Q3 2012 Q3 2013 Change 9M 2012 9M 2013 Change Revenues Group 909.0 925.9 2% 2,468.0 2,778.1 13% OEM Commercial 438.9 449.3 2% 1,141.9 1,402.9 23% OEM Military 117.8 144.8 23% 348.4 368.0 6% MRO 360.6 339.7 -6% 1,001.8 1,030.8 3% Consolidation -8.3 -7.9 -
Slide 21: Research & Development
Appendix Research & Development (m€) Q3 2012 Q3 2013 Change 9M 2012 9M 2013 Change Company expensed R&D 37.4 38.3 2% 113.3 107.1 -5% OEM 36.4 37.0 110.1 103.6 MRO 1.0 1.3 3.2 3.5 Capitalization of R&D -11.5 -15.7 -33.9 -38.0 OEM -11.3 -15.4 -33.3 -37.3 MRO -0.2 -0.3 -0.6 -0.7 R&D according to IFRS 2
Slide 22: Cash Flow
Appendix Cash Flow (m€) 9M 2012 9M 2013 Change Net Income IFRS 160.4 124.5 -22% Depreciation and amortization 106.3 121.8 Change in provisions * -14.2 -73.2 Change in Working Capital -74.0 -46.7 Taxes 1.5 14.1 Interest, derivatives, others -19.2 -1.9 Cash Flow from operating activities 160.8 138.6 -
Slide 23: Working Capital
Appendix Working Capital (m€) 31/12/2012 30/09/2013 Change Change in % Gross inventories 808.8 845.2 36.4 Prepayments -604.0 -504.5 99.5 Receivables 789.9 755.5 -34.4 Payables -797.7 -884.4 -86.7 Working Capital 197.0 211.8 14.8 8% 23 October 2013 Investor Relations - Q3 2013 Results 23
Slide 24: Net debt of € 401.3 m
Appendix Net debt of € 401.3 m Dec. 31, 2012 Sept 30, 2013 (m€) Financial assets 750 686 Derivative financial assets 6 619 Cash and cash Equivalents / 600 16 Short-term financial 271 securities Net debt Net debt Financial liabilities 450 300 € 391 m € 401 m Derivative financial 48 12 liabilities V25
Slide 25: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) Total depreciation / amortization Q3 2012 Q3 2013 9M 2012 9M 2013 MTU total 39.3 41.6 106.3 121.8 OEM 31.7 33.3 83.5 96.6 MRO 7.6 8.3 22.8 25.2 PPA depreciation / amortization Q3 2012 Q3 2013 9M 2012 9M 2013 MTU total 9.4 8.9 28.5 26.8 OEM 8.5 8.0 25.
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