Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q1 2016 Earnings Presentation
26 slides from Mtu Aero Engines's earnings presentation, Apr 28, 2016
Slide 1: Q1 2016 Results - MTU Aero Engines
Q1 2016 Results- MTU Aero Engines Conference Call with Investors and Analysts 28 April 2016
Slide 2: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance 2016 • Appendix 28 April 2016 Investor Relations 2
Slide 3: Business Highlights Q1 2016 – Successful Start into 2016
Business Highlights Q1 2016 – Successful Start into 2016 • IATA passenger traffic up 7.8% ytd. in Feb. 2016 • Major success at the Singapore Airshow 2016 • First A320neo aircraft handed over to Lufthansa and IndiGo • GE9x ground testing started • Kuwait signed deal for 28 Eurofighter aircraft • Reco
Slide 4: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance 2016 • Appendix 28 April 2016 Investor Relations 4
Slide 5: Financial Highlights Q1 2016
Financial Highlights Q1 2016 Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 1,500 200 12.0% 14% 12% 0% 150 8.9% 10% 1,000 1,100 1,098 +34% 131 8% 100 98 6% 500 50 4% 2% 0 0 0% 3M 2015 3M 2016 3M 2015 3M 2016 Net Income adj. / EPS adj. (m€ / €)* Free Cash Flow (m€) 150 2.00 100 1.79 +53% 94 1.34
Slide 6: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of April 28, 2016 (% of net exposure) (mUS$) 813 (=80%) 564 (=47%) 270 (=22%) 2016 2017 2018 Average hedge rate (US$/€): 1.24 1.21 1.14 28 April 2016 Investor Relations 6
Slide 7: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2016 • Appendix 28 April 2016 Investor Relations 7
Slide 8: Commercial OEM Business Highlights in Q1 2016
Commercial OEM Business Highlights in Q1 2016 • 570 mUS$ order wins at Singapore Airshow, mainly for GTF engines • Bombardier CSeries attracts new customers • First A320neo equipped with PW1100G-JM engines delivered to Lufthansa and IndiGo • P&W on track to accelerate PW1100G-JM ramp-up in H2 2016 •
Slide 9: Military Business Highlights in Q1 2016
Military Business Highlights in Q1 2016 • Kuwait signed deal for 28 Eurofighter aircraft • TP400 production for the A400M continues as planned, enhancement of TP400 Power Gearbox initiated • Flight test of CH-53K powered by GE38 engines on track • Embraer KC-390 (V2500-E5 engine) test flight program
Slide 10: OEM Segment
OEM Segment Order book 31/12/2015 31/03/2016 Change Order book (m€) 6,830.6 6,402.6 -6% Commercial Business (mUS$) 6,888.5 6,731.0 -2% Military Business (m€) 503.3 490.4 -3% (m€) 3M 2015 3M 2016 Change Revenues 726.7 680.5 -6% Commercial Business 635.5 556.0 -13% Military Business 91.2 124.5 37% EBI
Slide 11: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2016 • Appendix 28 April 2016 Investor Relations 11
Slide 12: Commercial MRO Business Highlights in Q1 2016
Commercial MRO Business Highlights in Q1 2016 • New contract wins above 600 mUS$ • Renewal of LM2500 contract with Statoil of 200 mUS$ • High workload in all MRO shops • Continuation of strong sales growth in Q1 16 with new record level • GTF MRO readiness under way • Mature engine program gaining i
Slide 13: Commercial MRO Business
Commercial MRO Business (mUS$) 31/12/2015 31/03/2016 Change Order book 6,165.4 6,235.8 1% (m€) 3M 2015 3M 2016 Revenues 383.9 428.8 12% EBIT adj. 38.1 42.3 11% EBIT adj. Margin % 9.9% 9.9% • Contract volume up 1% • Organic revenues up in the mid teens • EBIT margin remained stable at 9.9% 28 April 2
Slide 14: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2016 • Appendix 28 April 2016 Investor Relations 14
Slide 15: Guidance 2016 confirmed
Guidance 2016 confirmed Military: Stable New engine Sales (Com. OE): Mid single digit Spare parts Sales (Com. Spares): Low to mid single digit Commercial MRO: High single digit Revenues 4.6 – 4.7 bn € Tailwind from US$ fx-rate due to improved Hedge book (based on avg. rate of 1.10) Slight headwind f
Slide 16: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2016 • Appendix 28 April 2016 Investor Relations 16
Slide 17: Net Income adj.
Appendix Net Income adj. (m€) 3M 2015 3M 2016 Change Revenues 1,099.5 1,097.9 0% EBIT adj. 97.7 131.3 34% Thereof P&L of companies accounted "at equity" 9.5 8.3 -13% Interest Result -0.8 -1.7 -113% Interests for pension provisions -3.5 -4.1 -17% Financial Result -4.3 -5.8 -35% EBT adj. * 93.4 125.5
Slide 18: Profit & Loss
Appendix Profit & Loss (m€) 3M 2015 3M 2016 Change Revenues 1,099.5 1,097.9 0% Total Cost of Sales -974.0 -928.2 Gross Profit 125.5 169.7 35% Gross Profit Margin 11.4% 15.5% R&D according to IFRS -15.6 -19.4 SG&A -38.1 -41.6 Other operating income (expense) 2.6 1.7 P&L of companies accounted "at equ
Slide 19: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (m€) 3M 2015 3M 2016 Change Revenues Group 1,099.5 1,097.9 0% OEM Commercial 635.5 556.0 -13% OEM Military 91.2 124.5 37% MRO 383.9 428.8 12% Consolidation -11.1 -11.4 EBIT adj. Group 97.7 131.3 34% OEM (Commercial / Military) 58.1 88.8 53% MRO 38.1 42.3 11% C
Slide 20: Research & Development
Appendix Research & Development (m€) 3M 2015 3M 2016 Change Total R&D 52.0 58.6 13% Customer funded R&D -8.7 -8.1 7% Company expensed R&D 43.3 50.5 17% thereof OEM 42.3 49.3 thereof MRO 1.0 1.2 Capitalization of R&D -27.7 -31.1 thereof OEM -27.7 -31.1 thereof MRO 0.0 0.0 R&D according to IFRS (P&L)
Slide 21: MTU’s Cash development January – March 2016
Appendix MTU’s Cash development January – March 2016 22.3 Free Cashflow: +93.6 127.4 -1.1 -37.7 2.6 2.4 -103.4 32.7 75.4 -0.6 53.1 Adjusted Non-operating exceptional items: -32.7 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash Operating Investing
Slide 22: Cash Flow
Appendix Cash Flow (m€) 3M 2015 3M 2016 Change Net Income IFRS 21.0 90.4 >300% Depreciation and amortization 34.7 45.2 Change in provisions* 23.5 69.9 Change in Working Capital -8.0 -46.9 Taxes -15.0 -8.0 Interest, derivatives, others 55.0 -23.2 Cash Flow from operating activities 111.2 127.4 15% Ca
Slide 23: Net financial debt at 782.5 m€
Appendix Net financial debt at 782.5 m€ (m€) 31/12/2015 31/03/2016 Change Corporate bonds 353.2 356.0 Financial liabilities to bank 149.2 60.1 thereof Revolving Credit Facility 119.1 30.0 thereof Note Purchase Agreement 30.1 30.1 Loans from related companies 0.0 2.8 Finance lease liabilities 12.9 12
Slide 24: Working Capital
Appendix Working Capital (m€) 31/12/2015 31/03/2016 Change Change in % Gross inventories 894.0 905.3 11.3 Prepayments -373.8 -357.9 15.9 Receivables 1,065.8 1,056.1 -9.7 Payables -861.9 -832.5 29.4 Working Capital 724.1 771.0 46.9 6% 28 April 2016 Investor Relations 24
Slide 25: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) (in m€) 3M 2015 3M 2016 Total depreciation / amortization OEM 32.2 33.5 MRO 8.0 8.3 MTU total 40.2 41.8 PPA depreciation / amortization PPA OEM 5.5 4.7 PPA MRO 0.6 0.6 IAE Upshare OEM 7.7 7.3 MTU total 13.8 12.6 Depreciation / amortization w/o PPA and
Slide 26: Cautionary Note Regarding Forward-Looking Statements
Appendix 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 th