Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q3 2019 Earnings Presentation
22 slides from Mtu Aero Engines's earnings presentation, Oct 25, 2019
Slide 1: Q3 2019 Results
Q3 2019 Results Conference Call with Investors & Analysts 25 October 2019 - Investor Relations
Slide 2: Business Highlights Q3 2019
Business Highlights Q3 2019 • Robust market environment • Further ramp up of GTF deliveries on track • MRO contract wins at new record levels at 6bn US$ ytd. • LEAP engines will complement MRO engine portfolio at MTU Zhuhai • Capacity expansion on track • Successful launch of new convertible bond •
Slide 3: Financial Highlights Q3 2019
Financial Highlights Q3 2019 Revenues EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€) (in m€) +3% 3,404 3,319 +10% 558 509 (16.4%) (15.3%) +8% 392 363 303 +85% 163 9M 2018 9M 2019 9M 2018 9M 2019 9M 2018 9M 2019 9M 2018 9M 2019 October 25, 2019 Q3 2019 Results - Investor Relatio
Slide 4: OEM Segment
OEM Segment (in m €) 9M 2018 9M 2019 Change Revenues 1,340 1,461 9% Military Business 303 324 7% Commercial Business 1,037 1,138 10% EBIT adj. 341 370 9% EBIT adj. margin % 25.4% 25.3% • US$ Commercial business growth: ~ 3% • Military revenues up by 7% • EBIT margin stable October 25, 2019 Q3 2019 R
Slide 5: Commercial MRO
Commercial MRO (in m €) 9M 2018 9M 2019 Change Revenues 2,020 1,996 -1% EBIT adj. 168 187 12% EBIT adj. margin % 8.3% 9.4% • Organic Revenue growth ~ 8% • EBIT margin increase due to process change* and performance MTU Zhuhai *see page 4 of 2019 Q1 presentation October 25, 2019 Q3 2019 Results - Inv
Slide 6: Guidance 2019 Confirmed
Guidance 2019 Confirmed Organic Growth Military revenues + 10% Commercial OE Up low teens Commercial Spares Up mid to high single digit Commercial MRO Up high single digit* Total Group Sales ~ 4.7 bn € EBIT adj. margin ~ 16% (ex 15.5%) Net Income adj. Growth in line with EBIT adj. CCR** ~ 65-70% (ex
Slide 7: Appendix
Appendix October 25, 2019 Q3 2019 Results - Investor Relations 7 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 8: Group Order Book up 18 %
Appendix Group Order Book up 18 % 20.8 bn€ +18% 17.6 bn€ Order book 2018/12/31 Order book 2019/09/30 October 25, 2019 Q3 2019 Results - Investor Relations 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 25, 2019 (% of net exposure) in m$ 1,450 (=97%) 1,230 (=70%) 920 (=51%) 420 (=22%) 80 (=4%) 2019 2020 2021 2022 2023 Average hedge rate (US$/€) 1.17 1.19 1.18 1.18 1.19 October 25, 2019 Q3 2019 Results - Investor Relations 9 © MTU
Slide 10: Profit & Loss
Appendix Profit & Loss Q3 2018 Q3 2019 Change 9M 2018 9M 2019 Change Revenues 1,170 1,161 -1% 3,319 3,404 3% Total cost of sales -954 -920 -2,680 -2,709 Gross profit 216 241 11% 639 695 9% Gross profit margin % 18.5% 20.8% 19.2% 20.4% R&D according to IFRS -16 -17 -43 -45 SG&A -53 -50 -150 -154 Othe
Slide 11: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators Q3 2018 Q3 2019 Change 9M 2018 9M 2019 Change EBIT reported 162 180 11% 471 519 10% Adjustment (PPA Depreciation & Amortization) 5 5 16 16 Adjustment (IAE Upshare) 8 8 23 23 EBIT adjusted 174 193 10% 509 558 10% thereof P&L of companies
Slide 12: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. Q3 2018 Q3 2019 Change 9M 2018 9M 2019 Change Revenues Group 1,170 1,161 -1% 3,319 3,404 3% OEM Commercial 350 365 4% 1,037 1,138 10% OEM Military 104 108 3% 303 324 7% MRO 731 709 -3% 2,020 1,996 -1% Consolidation -15 -20 -41 -54 EBIT adjusted Group 174 193 1
Slide 13: Research & Development
Appendix Research & Development Q3 2018 Q3 2019 Change 9M 2018 9M 2019 Change Total R&D 49 55 13% 148 167 13% Customer funded R&D -4 -6 -64% -16 -23 -42% Company expensed R&D 45 48 9% 132 144 9% Capitalization of R&D -20 -27 -63 -76 Amortisation 4 5 11 15 Total R&D impact P&L (on EBIT) 29 27 -6% 80
Slide 14: Financial Result
Appendix Financial Result Q3 2018 Q3 2019 Change 9M 2018 9M 2019 Change Interest income 2 2 -17% 5 5 2% Interest expense -3 -12 <-300% -7 -20 -191% Interest result -1 -11 <-300% -2 -15 <-300% Financial result on other items -7 5 -10 -9 US$ / non cash valuations / others -3 8 0 2 Interest for pension
Slide 15: MTU's Cash development January – September 2019
Appendix MTU’s Cash development January – September 2019 34 Free Cashflow: +303 -277 -31 1 0 609 -302 30 4 Adjusted Non-operating 133 99 exceptional items: -30 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Financin
Slide 16: Cash Flow
Appendix Cash Flow (in m €) 9M 2018 9M 2019 Change Net Income IFRS 337 355 5% Depreciation and amortization 144 189 Change in provisions and liabilities 157 139 Change in working capital -207 -124 Taxes 20 32 Interest, derivatives, others 7 18 Cash Flow from operating activities 457 609 33% Net Inve
Slide 17: Net debt
Appendix Net debt (in m €) 31.12.2018 30.09.2019 Change Bonds and notes 100 99 Convertible bonds 483 692 Financial liabilities to bank 54 40 thereof Revolving Credit Facility 15 0 thereof Note Purchase Agreement 30 30 Financial lease liabilities 10 148 Loans from related companies and third parties
Slide 18: Working capital
Appendix Working capital (in m €) 31.12.2018 30.09.2019 Change Inventories 996 1,169 Prepayments -293 -389 Receivables 1,996 2,122 Payables -1,331 -1,411 Working Capital 1,368 1,492 9% October 25, 2019 Q3 2019 Results - Investor Relations 18 © MTU Aero Engines AG. The information contained herein is
Slide 19: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2018 30.09.2019 Change Intangible assets 1,073 1,125 Property, plant, equipment 799 1,006 other non-current assets 1,844 1,900 Total non-current assets 3,716 4,031 8% Current assets 3,135 3,540 13% Total assets 6,851 7,571 11% Equity 2,144 2,092 -2% Non-current
Slide 20: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization Q3 2018 Q3 2019 Change 9M 2018 9M 2019 Change OEM 40 45 119 132 MRO 8 23 25 57 Total depreciation / amortization* 48 68 41% 144 189 31% PPA OEM 5 5 14 14 PPA MRO 1 1 2 2 IAE Upshare OEM 8 8 23 23 PPA depreciation / amortization & IAE Upshare amortization (EBI
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