Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q3 2022 Earnings Presentation
21 slides from Mtu Aero Engines's earnings presentation, Oct 27, 2022
Slide 1: Q3 2022 Results
Q3 2022 Results 27/10/2022 Conference Call with Analysts and Investors
Slide 2: Q3 2022 Review
Q3 2022 Review AIR TRAFFIC (IN COMPARISON TO 2019) Q3 HIGHLIGHTS EXECUTIVE BOARD I Positive recovery trend in passenger traffic I Repair shop MTU Serbia opened on October 7th I Dr. Silke Maurer to be new COO from February continues I PW800 aftermarket participation expanded 2023 I Resilient cargo tr
Slide 3: Financial Highlights Q3 2022
Financial Highlights Q3 2022 Revenues EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€) (in m€) 3,818 +27% 448 3,008 (11.7%) +46% 307 (10.2%) 319 +45% 220 +7% 219 205 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 9M 2022 Q3 2022 Results - Investor Relations 3 27 October
Slide 4: OEM Segment
OEM Segment (in m €) 9M 2021 9M 2022 Change Revenues 1,075 1,255 17% Military Business 310 309 0% Commercial Business 765 946 24% EBIT adj. 202 251 24% EBIT adj. margin % 18.8% 20.0% • US$ Commercial revenues up by 10% • Military revenues stable • EBIT margin up due to business mix 4 27 October 2022
Slide 5: Commercial MRO
Commercial MRO (in m €) 9M 2021 9M 2022 Change Revenues 2,010 2,644 32% EBIT adj. 105 196 87% EBIT adj. margin % 5.2% 7.4% • US$ Revenues up by 17% • EBIT margin up due to business mix and strong FX-tailwind 5 27 October 2022 Q3 2022 Results - Investor Relations
Slide 6: Guidance 2022
Guidance 2022 Organic revenue Military Commercial OE Up high single digit % Up mid to high teens % OE Total Group Sales: EBIT adj. 5.4 – 5.5 bn € Up low thirties % MRO Net Income adj. CCR Commercial Spares Commercial MRO Growth in line Expected with EBIT adj. at 60 – 70 % Up mid teens % MRO up ~20 %
Slide 7: Appendix
Appendix 7 27 October 2022 Q3 2022 Results - Investor Relations
Slide 8: Group Order Book up 17%
Appendix Group Order Book up 17% 26.0 bn€ +17% 22.2 bn€ Order book 2021/12/31 Order book 2022/09/30 8 27 October 2022 Q3 2022 Results - Investor Relations
Slide 9: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of October 27th, 2022 in m$ 1,400 1,060 1,040 460 100 2022 2023 2024 2025 2026 Average hedge rate (€/US$) 1.15 1.16 1.14 1.10 1.04 9 27 October 2022 Q3 2022 Results - Investor Relations
Slide 10: Profit & Loss
Appendix Profit & Loss (in m €) Q3 2021 Q3 2022 Change 9M 2021 9M 2022 Change Revenues 1,004 1,349 34% 3,008 3,818 27% Total cost of sales -830 -1,114 -2,543 -3,233 Gross profit 174 234 34% 464 585 26% Gross profit margin % 17.4% 17.4% 15.4% 15.3% R&D according to IFRS -22 -28 -60 -75 SG&A -53 -58 -
Slide 11: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) Q3 2021 Q3 2022 Change 9M 2021 9M 2022 Change EBIT reported 120 147 23% 288 331 15% Adjustment (PPA Depreciation & Amortization) 5 5 16 15 Adjustment (IAE Upshare) 6 6 17 17 Adjustment (Vericor sale) -13 0 -13 0 Adjustment (Impa
Slide 12: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (in m €) Q3 2021 Q3 2022 Change 9M 2021 9M 2022 Change Revenues Group 1,004 1,349 34% 3,008 3,818 27% OEM Commercial 251 350 39% 765 946 24% OEM Military 123 95 -22% 310 309 0% MRO 658 933 42% 2,010 2,644 32% Consolidation -27 -30 -77 -81 EBIT adjusted Group 1
Slide 13: Research & Development
Appendix Research & Development (in m €) Q3 2021 Q3 2022 Change 9M 2021 9M 2022 Change Total R&D 60 56 -6% 162 192 18% Customer funded R&D -19 -10 47% -46 -44 3% Company expensed R&D 41 46 13% 116 147 26% Capitalization of R&D -11 -13 -34 -51 Amortisation 6 8 18 23 Impairment 0 0 0 63 Total R&D impa
Slide 14: Financial Result
Appendix Financial Result (in m €) Q3 2021 Q3 2022 Change 9M 2021 9M 2022 Change Interest income 0 1 >300% 1 2 117% Interest expense -8 -7 3% -24 -22 5% Interest result -7 -6 20% -23 -20 10% Financial result on other items -5 -8 -12 -11 US$ / non cash valuations / others -3 -5 -7 -3 Interest for pen
Slide 15: MTU's Cash development January – September 2022
Appendix MTU’s Cash development January – September 2022 54 Free Cashflow: +219 -225 -14 -4 12 450 -178 7 6 722 775 Adjusted Non-operating exceptional items: -6 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Financi
Slide 16: Cash Flow
Appendix Cash Flow (in m €) 9M 2021 9M 2022 Change Net Income IFRS 190 212 12% Depreciation and amortization 203 279 Change in provisions and liabilities -70 204 Change in working capital 19 -363 Taxes -4 22 Interest, derivatives, others 30 97 Cash Flow from operating activities 369 450 22% Net Inve
Slide 17: Net debt
Appendix Net debt (in m €) 31.12.2021 30.09.2022 Change Bonds and notes 604 600 Convertible bonds 529 532 Revolving Credit Facility 0 0 Financial lease liabilities 176 160 Loans from related companies and third parties 0 2 Financial liabilities arising from program participation 142 146 thereof aris
Slide 18: Working capital
Appendix Working capital (in m €) 31.12.2021 30.09.2022 Change Inventories 1,380 1,504 Prepayments -398 -349 Receivables 2,073 2,685 Payables -1,654 -2,087 Working Capital 1,401 1,753 25% 18 27 October 2022 Q3 2022 Results - Investor Relations
Slide 19: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2021 30.09.2022 Change Intangible assets 1,128 1,136 Property, plant, equipment 1,251 1,289 other non-current assets 1,664 1,619 Total non-current assets 4,043 4,045 0% Current assets 4,260 5,019 18% Total assets 8,304 9,064 9% Equity 2,760 2,871 4% Non-current
Slide 20: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization (in m €) Q3 2021 Q3 2022 Change 9M 2021 9M 2022 Change OEM 51 51 149 217 MRO 18 22 54 62 Total depreciation / amortization* 69 73 5% 203 279 38% PPA OEM 5 5 14 14 PPA MRO 1 0 2 1 IAE Upshare OEM 6 6 17 17 PPA depreciation / amortization & IAE Upshare amortiza
Slide 21: Proprietary Notice Cautionary note regarding forward-looking statements
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