Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — FY2019 Earnings Presentation
24 slides from Mtu Aero Engines's earnings presentation, Feb 20, 2020
Slide 1: Preliminary Full Year Results 2019
Preliminary Full Year Results 2019 Conference Call with Investors & Analysts 20 February 2020 - Investor Relations
Slide 2: Business Highlights
Business Highlights • Market fundamentals strong in 2019 • GTF deliveries on track and retrofit work progressing • Maiden flight of B777x in January 2020, powered by GE9x engines • MRO contract wins at record level with 7.5 bn US$ • First engine inducted at EME Aero • Partnership with Safran for the
Slide 3: Financial Highlights 2019
Financial Highlights 2019 Revenues EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€) (in m€) 757 +1%* 4,628 (16.4%) 4,567 671 +13% (14.7%) 538 +12% 479 358 +77% 203 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 *) Organically 5% 20 February 2020 Preliminary Full
Slide 4: Guidance 2019 achieved
Guidance 2019 achieved Guidance 2019 Actuals 2019 Revenues ~ 4.7 bn€ 4,628 m€ EBIT adj. margin ~ 16% (~750 m€) 16.4% (757 m€) Net Income adj. Growth in line with EBIT adj. 538 m€ CCR* 65% - 70% 67% (358 m€) 20 February 2020 Preliminary Full Year Results 2019 - Investor Relations 4 © MTU Aero E
Slide 5: OEM Segment
OEM Segment (in m €) FY 2018 FY 2019 Change Revenues 1,827 1,996 9% Military Business 431 459 6% Commercial Business 1,396 1,537 10% EBIT adj. 431 496 15% EBIT adj. margin % 23.6% 24.8% • US$ Commercial business growth: ~ 4% • Military revenues up by 6% • EBIT margin slightly up 20 February 2020 Pre
Slide 6: Commercial MRO
Commercial MRO (in m €) FY 2018 FY 2019 Change Revenues 2,800 2,711 -3% EBIT adj. 240 261 9% EBIT adj. margin % 8.6% 9.6% • US$ Organic Revenue growth ~ 7%* • EBIT margin increase due to shift of V2500 IAE contract and performance MTU Zhuhai * Adjusted by MTU Zhuhai IAE contract shift 20 February 20
Slide 7: Guidance 2020: Further growth of EBIT adj. and Free Cash Flow Confirmed
Guidance 2020: Further growth of EBIT adj. and Free Cash Flow Confirmed Organic Growth Military revenues Up mid single digit Commercial OE Up high single digit Commercial Spares Up mid to high single digit Commercial MRO Up in the low twenties EBIT adj. High single digit growth Net Income adj. Growt
Slide 8: Appendix
Appendix 20 February 2020 Preliminary Full Year Results 2019 - Investor Relations 8 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 9: Group Order Book up 13 %
Appendix Group Order Book up 13 % +13% 19.8 bn€ 17.6 bn€ Order book 2018/12/31 Order book 2019/12/31 20 February 2020 Preliminary Full Year Results 2019 - Investor Relations 9 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 10: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of February 20, 2020 (% of net exposure) in m$ 1,330 (=75%) 1,060 (=57%) 680 (=35%) 280 (=14%) 2020 2021 2022 2023 Average hedge rate (€/US$) 1.18 1.18 1.17 1.18 20 February 2020 Preliminary Full Year Results 2019 - Investor Relations 10 © M
Slide 11: Profit & Loss
Appendix Profit & Loss Q4 2018 Q4 2019 Change FY 2018 FY 2019 Change Revenues 1,248 1,225 -2% 4,567 4,628 1% Total cost of sales -1,036 -988 -3,716 -3,697 Gross profit 213 237 11% 851 931 9% Gross profit margin % 17.0% 19.3% 18.6% 20.1% R&D according to IFRS -18 -20 -61 -66 SG&A -49 -49 -199 -203 Ot
Slide 12: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators Q4 2018 Q4 2019 Change FY 2018 FY 2019 Change EBIT reported 150 186 24% 620 706 14% Adjustment (PPA Depreciation & Amortization) 5 5 21 21 Adjustment (IAE Upshare) 8 8 30 30 EBIT adjusted 163 199 23% 671 757 13% thereof P&L of companies
Slide 13: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. Q4 2018 Q4 2019 Change FY 2018 FY 2019 Change Revenues Group 1,248 1,225 -2% 4,567 4,628 1% OEM Commercial 359 399 11% 1,396 1,537 10% OEM Military 128 135 6% 431 459 6% MRO 780 716 -8% 2,800 2,711 -3% Consolidation -18 -25 -59 -79 EBIT adjusted Group 163 199
Slide 14: Research & Development
Appendix Research & Development Q4 2018 Q4 2019 Change FY 2018 FY 2019 Change Total R&D 54 48 -11% 201 214 7% Customer funded R&D -8 -9 -6% -24 -31 -30% Company expensed R&D 45 39 -14% 177 183 3% Capitalization of R&D -19 -7 -82 -83 Amortisation 4 7 15 22 Total R&D impact P&L (on EBIT) 31 39 24% 111
Slide 15: Financial Result
Appendix Financial Result Q4 2018 Q4 2019 Change FY 2018 FY 2019 Change Interest income 3 1 -54% 8 6 -17% Interest expense -1 -3 -143% -8 -24 -183% Interest result 1 -2 -283% -1 -17 <-300% Financial result on other items -2 -13 -12 -22 US$ / non cash valuations / others 1 -9 2 -7 Interest for pensio
Slide 16: MTU's Cash development January – December 2019
Appendix MTU’s Cash development January – December 2019 41 Free Cashflow: +358 -472 832 -31 29 0 -324 4 2 Adjusted Non-operating 99 exceptional items: -2 140 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Financing
Slide 17: Cash Flow
Appendix Cash Flow (in m €) FY 2018 FY 2019 Change Net Income IFRS 453 488 8% Depreciation and amortization 201 260 Change in provisions and liabilities 185 176 Change in working capital -320 -142 Taxes 17 42 Interest, derivatives, others 60 8 Cash Flow from operating activities 595 832 40% Net Inve
Slide 18: Net debt
Appendix Net debt (in m €) 31.12.2018 31.12.2019 Change Bonds and notes 100 100 Convertible bonds 483 562 Financial liabilities to bank 54 40 thereof Revolving Credit Facility 15 0 thereof Note Purchase Agreement 30 30 Financial lease liabilities 10 147 Loans from related companies and third parties
Slide 19: Working capital
Appendix Working capital (in m €) 31.12.2018 31.12.2019 Change Inventories 996 1,279 Prepayments -293 -396 Receivables 1,996 2,083 Payables -1,331 -1,456 Working Capital 1,368 1,510 10% 20 February 2020 Preliminary Full Year Results 2019 - Investor Relations 19 © MTU Aero Engines AG. The information
Slide 20: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2018 31.12.2019 Change Intangible assets 1,073 1,163 Property, plant, equipment 799 1,101 other non-current assets 1,844 1,892 Total non-current assets 3,716 4,155 12% Current assets 3,135 3,610 15% Total assets 6,851 7,765 13% Equity 2,144 2,421 13% Non-current
Slide 21: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization Q4 2018 Q4 2019 Change FY 2018 FY 2019 Change OEM 43 50 162 183 MRO 14 20 39 77 Total depreciation / amortization* 57 71 25% 201 260 29% PPA OEM 5 5 19 19 PPA MRO 1 1 2 2 IAE Upshare OEM 8 8 30 30 PPA depreciation / amortization & IAE Upshare amortization (EB
Slide 22: Guidance for PPA and IAE Upshare Amortization; Guidance for R&D Amortization
Appendix Guidance for PPA and IAE Upshare Amortization (in m€) 2018 2019 2020E 2021E 2022E PPA depreciation / amortization 21 21 ~21 ~21 ~20 IAE Upshare 30 30 ~30 ~30 ~30 Adjustments 51 51 ~51 ~51 ~50 Guidance for R&D Amortization (in m€) 2018 2019 2020E 2021E 2022E R&D amortization 15 22 ~26 ~29 ~3
Slide 23: 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 24: 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