Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — FY2015 Earnings Presentation
29 slides from Mtu Aero Engines's earnings presentation, Feb 16, 2016
Slide 1: Preliminary FY 2015 Results - MTU Aero Engines
Preliminary FY 2015 Results - MTU Aero Engines Conference Call with Investors and Analysts February 16, 2016
Slide 2: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance 2016 • Appendix 16 February 2016 Investor Relations 2
Slide 3: Market Environment
Market Environment Status Market Indicator 2015 2016E Passenger traffic +6.5% +6.9% Airline profits US$ 33 bn US$ 36 bn Crude Oil (Brent) 52 US$ 40-50 US$ Airliner Deliveries 1,397 (+3%) ~ 1,400 Airliner Orderbook 13,400 Airliner Engine Fleet 43,600 (+5%) Source IATA Dec 15 / Jan 16, Ascend, EIA 3 1
Slide 4: Business Highlights 2015 – Success in all Business Segments
Business Highlights 2015 – Success in all Business Segments • First Delivery of A320neo with PW1100G engine to Lufthansa in January 2016 • Ramp up for GTF successfully initiated • Flight testing for GTF engines on track • Development of GE9x powering the B777x on track • MRO product and service port
Slide 5: Guidance 2015: Revenues and EBIT at new record levels
Guidance 2015: Revenues and EBIT at new record levels Status Guidance 2015 FY 2015 Revenues ~ € 4,600 bn € 4,435.3 bn EBIT adj. ~ € 430 m € 440.3 m EBIT adj. margin 9.9% Net income adj. ~ € 295 m € 306.9m 16 February 2016 Investor Relations 5
Slide 6: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance 2016 • Appendix 16 February 2016 Investor Relations 6
Slide 7: Financial Highlights 2015
Financial Highlights 2015 Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 9.8% 9.9% 5,000 500 10% +13% +15% 4,000 4,435 400 440 8% 3,914 383 3,000 300 6% 2,000 200 4% 1,000 100 2% 0 0 0% FY 2014 FY 2015 FY 2014 FY 2015 Net Income adj. / EPS adj. (m€ / €)* Free Cash Flow (m€) 6.01 80 400 6,00 350
Slide 8: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of February 16, 2016 (% of net exposure) (mUS$) 984 (=93%) 764 (=75%) 540 (=45%) 270 (=22%) 2015 2016 2017 2018 Average hedge rate (US$/€): 1.25 1.24 1.21 1.14 16 February 2016 Investor Relations 8
Slide 9: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2016 • Appendix 16 February 2016 Investor Relations 9
Slide 10: Commercial OEM Business Highlights in 2015
Commercial OEM Business Highlights in 2015 • First Delivery of A320neo with PW1100-JM in Jan 2016 • Strong order book >7,000 GTF engines incl. options • First flight of Mitsubishi Regional Jet powered by GTF • PW1900G for Embraer E195-E2 started flight tests • Ramp up for new engine programs success
Slide 11: Military Business Highlights in 2015
Military Business Highlights in 2015 • Kuwait signed MoU for 28 Eurofighter aircraft • 21 A400M with TP400 engines have been delivered up to date • EASA certification for TP400 maintenance received • First flight of Sikorsky CH-53K (GE38 engine) • Embraer KC-390 (V2500-E5 engine) test flight program
Slide 12: OEM Segment
OEM Segment Order book 31/12/2014 31/12/2015 Change Order book (m€) 6,763.6 6,830.6 1% Commercial Business (mUS$) 7,450.0 6,888.5 -8% Military Business (m€) 627.4 503.3 -20% (m€) FY 2014 FY 2015 Change Revenues 2,648.3 2,897.1 9% Commercial Business 2,116.8 2,414.0 14% Military Business 531.5 483.1
Slide 13: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2016 • Appendix 16 February 2016 Investor Relations 13
Slide 14: Commercial MRO Business Highlights in 2015
Commercial MRO Business Highlights in 2015 • Independent sales campaign won at a value of US$ 2.1 bn in 2015 • PW1100G-JM maintenance cooperation agreement signed • MTU Maintenance Hannover received certification PW1100G-JM maintenance • First TCF for GEnx engine maintained • Expansion of MRO produc
Slide 15: Commercial MRO Business
Commercial MRO Business (mUS$) 31/12/2014 31/12/2015 Change Order book 5.357,8 6.165,4 15% (m€) FY 2014 FY 2015 Revenues 1.298,9 1.580,6 22% EBIT adj. 116,3 155,2 33% EBIT adj. Margin % 9,0% 9,8% • Contract volume in US$ up by 15% • Organic revenues up by 2% • Favourable US$ fx rate support EBIT mar
Slide 16: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2016 • Appendix 16 February 2016 Investor Relations 16
Slide 17: Guidance 2016
Guidance 2016 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 from Com. O
Slide 18: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2016 • Appendix 16 February 2016 Investor Relations 18
Slide 19: Net Income adj.
Appendix Net Income adj. (m€) Q4 2014 Q4 2015 Change FY 2014 FY 2015 Change Revenues 1,102.3 1,178.3 7% 3,913.9 4,435.3 13% EBIT adj. 111.8 107.2 -4% 382.7 440.3 15% Thereof P&L of companies accounted "at equity" 8.8 8.3 -6% 22.0 29.1 32% Interest Result -2.9 -0.3 90% -8.8 -1.1 88% Interests for pen
Slide 20: Profit & Loss
Appendix Profit & Loss (m€) Q4 2014 Q4 2015 Change FY 2014 FY 2015 Change Revenues 1,102.3 1,178.3 7% 3,913.9 4,435.3 13% Total Cost of Sales -950.8 -1,026.0 -3,375.4 -3,855.0 Gross Profit 151.5 152.3 1% 538.5 580.3 8% Gross Profit Margin 13.7% 12.9% 13.8% 13.1% R&D company funded -17.7 -20.3 -75.7
Slide 21: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (m€) Q4 2014 Q4 2015 Change FY 2014 FY 2015 Change Revenues Group 1,102.3 1,178.3 7% 3,913.9 4,435.3 13% OEM Commercial 552.9 621.2 12% 2,116.8 2,414.0 14% OEM Military 179.8 137.2 -24% 531.5 483.1 -9% MRO 378.1 432.2 14% 1,298.9 1,580.6 22% Consolidation -8.5
Slide 22: Research & Development
Appendix Research & Development (m€) Q4 2014 Q4 2015 Change FY 2014 FY 2015 Change Company expensed R&D 61,8 43,8 -29% 160,0 168,7 5% OEM 60,5 41,6 155,4 162,5 MRO 1,3 2,2 4,6 6,2 Capitalization of R&D -44,1 -23,5 -84,3 -102,2 OEM -44,1 -23,5 -84,3 -102,2 MRO 0,0 0,0 0,0 0,0 R&D according to IFRS 17
Slide 23: MTU’s Cash development January – December 2015
Appendix MTU’s Cash development January – December 2015 -11.5 Free Cashflow: +72.0 296,2 -267,8 47,1 -42,7 -28,5 25 2,8 -43,6 64,6 Adjusted Non-operating 53,1 exceptional items: +43.6 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash Operating Inve
Slide 24: Cash Flow
Appendix Cash Flow (m€) FY 2014 FY 2015 Change Net Income IFRS 195.4 217.6 11% Depreciation and amortization 154.7 163.2 Change in provisions * -11.2 152.6 Change in Working Capital -102.4 -255.0 Taxes -74.5 -32.8 Interest, derivatives, others 42.8 50.6 Cash Flow from operating activities 204.8 296.
Slide 25: Net financial debt at 881 m€
Appendix Net financial debt at 881 m€ (m€) FY 2014 FY 2015 Change Corporate bonds 352,7 353,2 Financial liabilities to bank 39,7 149,2 thereof Revolving Credit Facility 9,6 119,1 thereof Note Purchase Agreement 30,1 30,1 Loans from related companies 0,1 0,0 Finance lease liabilities 14,2 12,9 Financ
Slide 26: Working Capital
Appendix Working Capital (m€) 31/12/2014 31/12/2015 Change Change in % Gross inventories 741.0 894.0 153.0 Prepayments -485.7 -373.8 111.9 Receivables 1,004.2 1,065.8 61.6 Payables -790.4 -861.9 -71.5 Working Capital 469.1 724.1 255.0 54% 16 February 2016 Investor Relations 26
Slide 27: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) (in m€) Q4 2014 Q4 2015 FY 2014 FY 2015 Total depreciation / amortization OEM 33.7 37.3 125.4 134.2 MRO 10.0 9.5 32.6 33.4 MTU total 43.7 46.8 158.0 167.6 PPA depreciation / amortization PPA OEM 5.1 5.3 21.9 21.6 PPA MRO 0.6 0.7 2.5 2.5 IAE Upshare OE
Slide 28: Guidance for PPA and IAE Upshare Amortization; Guidance R&D Amortization
Appendix Guidance for PPA and IAE Upshare Amortization (in m€) in m€ 2015 2016E 2017E 2018E 2019E 2020E PPA depreciation / amortization 24.1 ~20 ~20 ~20 ~20 ~20 IAE Upshare 30.6 ~30 ~30 ~30 ~30 ~30 Adjustments 54.7 ~50 ~50 ~50 ~50 ~50 Guidance R&D Amortization in m€ 2015 2016E 2017E 2018E 2019E 2020
Slide 29: 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