Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q3 2017 Earnings Presentation
22 slides from Mtu Aero Engines's earnings presentation, Oct 26, 2017
Slide 1: MTU Aero Engines AG Q3 2017 Results
MTU Aero Engines AG Q3 2017 Results 10/26/2017 – Conference Call with Investors and Analysts
Slide 2: Business Highlights
Business Highlights • Strong passenger and freight traffic growth continued in August 2017 • GTF engine deliveries increased in Q3 • Preparation for PW800’s entry into service in full swing • Qatar signed letter of intent to purchase 24 Eurofighter Typhoon jets • Maintenance framework agreement for
Slide 3: Financial Highlights Q3 2017
Financial Highlights Q3 2017 Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 11,6% 12,0% 4.000 500 12% +10% 3.500 +14% 3.745 10% 400 451 3.000 3.401 394 8% 2.500 300 2.000 6% 1.500 200 4% 1.000 100 2% 500 0 0 0% 9M 2016 9M 2017 9M 2016 9M 2017 Net Income adj. / EPS adj. (m€ / €) Free Cash Flow (
Slide 4: Update on GTF engines
Update on GTF engines • 250 GTF engines delivered in the first 9 months • 1,200 accumulated GTF engine modules delivered by MTU • 94 GTF powered aircraft are in operation • GTF engines performed over 350,000 flight hours • GTF engine is meeting its specifications on fuel, noise and emissions • Days
Slide 5: OEM Segment
OEM Segment Order book 31/12/2016 30/09/2017 Change Order book (m€) 7,246.0 5,834.1 -19% Commercial Business (mUS$) 7,113.6 6,447.0 -9% Military Business (m€) 497.5 373.3 -25% (m€) 9M 2016 9M 2017 Change Revenues 2,095.1 2,092.9 0% Commercial Business 1,738.3 1,821.4 5% Military Business 356.8 271.5
Slide 6: Commercial MRO Business
Commercial MRO Business (mUS$) 31/12/2016 30/09/2017 Change Order book 7,300.9 7,442.4 2% (m€) 9M 2016 9M 2017 Change Revenues 1,368.3 1,727.5 26% EBIT adj. 129.0 146.8 14% EBIT adj. Margin % 9.4% 8.5% • Organic revenues up 26% • EBIT margin at 8.5% 2017/10/26 Q3 2017 Results - Conference Call with
Slide 7: Guidance 2017
Guidance 2017 Military: Down mid teens New engine Sales (Com. OE): Up mid to high single digit (ex: high single digit) Spare parts Sales (Com. Spares): Up 10% (ex: high single digit) Commercial MRO: Up mid to high teens Revenues ~ 5.1 bn € (ex:~ 5.3 bn€) Tailwind from US$ fx-rate Slight tailwind fro
Slide 8: Appendix
Appendix 2017/10/26 Q3 2017 Results - Conference Call with Investors & Analysts 8 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 9: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of October 26, 2017 (% of net US$ exposure) (in m US$) 1,073 (=90%) 910 (=67%) 530 (=36%) 2017 2018 2019 Average hedge rate (US$/€) 1.18 1.14 1.15 2017/10/26 Q3 2017 Results - Conference Call with Investors & Analysts 9 © MTU Aero Engines AG
Slide 10: Profit & Loss
Appendix Profit & Loss (m€) Q3 2016 Q3 2017 Change 9M 2016 9M 2017 Change Revenues 1,102.1 1,197.4 9% 3,401.3 3,745.4 10% Total Cost of Sales -930.7 -1,030.5 -2,896.0 -3,190.5 Gross Profit 171.4 166.9 -3% 505.3 554.9 10% Gross Profit Margin 15.6% 13.9% 14.9% 14.8% R&D according to IFRS -14.6 -18.5 -
Slide 11: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (m€) Q3 2016 Q3 2017 Change 9M 2016 9M 2017 Change EBIT reported 127.2 117.1 -8% 356.2 412.2 16% Adjustment (PPA Depreciation & Amortization) 5.2 5.2 15.8 15.8 Adjustment (IAE Upshare) 7.3 7.5 21.8 22.6 EBIT adj. 139.7 129.8 -7% 393.8 45
Slide 12: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (m€) Q3 2016 Q3 2017 Change 9M 2016 9M 2017 Change Revenues Group 1,102.1 1,197.4 9% 3,401.3 3,745.4 10% OEM Commercial 537.4 578.7 8% 1,738.3 1,821.4 5% OEM Military 116.6 98.9 -15% 356.8 271.5 -24% MRO 475.0 546.5 15% 1,368.3 1,727.5 26% Consolidation -26.9
Slide 13: Research & Development
Appendix Research & Development (m€) Q3 2016 Q3 2017 Change 9M 2016 9M 2017 Change Total R&D 44.3 51.7 17% 157.9 162.4 3% Customer funded R&D -8.4 -6.4 24% -30.8 -26.3 15% Company expensed R&D 35.9 45.3 26% 127.1 136.1 7% thereof OEM 35.1 44.5 123.4 133.5 thereof MRO 0.8 0.8 3.7 2.6 Capitalization o
Slide 14: Financial Result
Appendix Financial Result (m€) Q3 2016 Q3 2017 Change 9M 2016 9M 2017 Change Interest Income 0.2 1.3 >300% 0.6 4.3 >300% Interest Expense -2.7 -0.9 67% -6.8 -7.0 -3% Interest Result* -2.5 0.4 116% -6.2 -2.7 56% Financial Result on other items -4.5 -9.8 -13.2 -21.2 thereof interests for pension oblig
Slide 15: MTU's Cash development January – September 2017
Appendix MTU’s Cash development January – September 2017 -235.8 Free Cashflow: +119.1 -166,3 299,2 -25,0 8,4 2,8 -365,5 322,4 Adjusted Non-operating -3,2 13,8 exceptional items: -13.8 86,6 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash Operating
Slide 16: Cash Flow
Appendix Cash Flow (m€) 9M 2016 9M 2017 Change Net Income IFRS 242.4 297.3 23% Depreciation and amortization 129.6 140.2 Change in provisions 123.9 132.6 Change in Working Capital -196.7 -202.0 Taxes -10.6 -1.9 Interest, derivatives, others -28.5 -67.0 Cash Flow from operating activities 260.1 299.2
Slide 17: Net financial debt at 848 m€
Appendix Net financial debt at 848 m€ (m€) 31/12/2016 30/09/2017 Change Bonds and notes 353.6 99.0 Convertible bond 474.6 477.4 Financial liabilities to bank 30.1 54.1 thereof Revolving Credit Facility 0.0 24.1 thereof Note Purchase Agreement 30.1 30.0 Loans from related companies 0.0 0.8 Finance le
Slide 18: Working Capital
Appendix Working Capital (m€) 31/12/2016 30/09/2017 Change Change in % Gross inventories 1,022.7 1,020.3 -2.4 Prepayments -344.2 -341.3 2.9 Receivables 1,148.2 1,208.2 60.0 Payables -811.0 -651.3 159.7 Working Capital 1,015.7 1,235.9 220.2 22% 2017/10/26 Q3 2017 Results - Conference Call with Invest
Slide 19: Balance Sheet
Appendix Balance Sheet (m€) 31/12/2016 30/09/2017 Change Intangible Assets 2,234.2 2,289.5 Property, Plant, Equipment 681.5 693.1 other Non-current assets 390.7 465.9 Total Non-Current assets 3,306.4 3,448.5 4% Current assets 2,538.2 2,375.0 -6% Total assets 5,844.6 5,823.5 0% Equity 1,500.5 1,879.0
Slide 20: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) (in m€) Q3 2016 Q3 2017 9M 2016 9M 2017 Total depreciation / amortization OEM 35.8 38.9 103.7 111.8 MRO 9.0 9.3 25.9 28.4 MTU total 44.8 48.2 129.6 140.2 PPA depreciation / amortization & IAE Upshare amortization (EBIT adjustments) PPA OEM 4.6 4.6 14.
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