Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — H1 2019 Earnings Presentation
22 slides from Mtu Aero Engines's earnings presentation, Jul 25, 2019
Slide 1: H1 2019 Results
H1 2019 Results Conference Call with Investors & Analysts 25 July 2019 - Investor Relations
Slide 2: Business Highlights H1 2019
Business Highlights H1 2019 • Solid passenger traffic growth in May • >1.3 bn US$ order wins at Paris Airshow • Further ramp up of GTF deliveries on track • Exclusive MRO Contract signed with Jetblue in July brings MRO independent contract wins to 4.5 bn USD ytd • Extension of MTU’s facilities ongoi
Slide 3: Financial Highlights H1 2019
Financial Highlights H1 2019 Revenues EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€ / €) (in m€) 365 +4% *) 2,243 335 +9% (16.3%) 2,149 (15.6%) +10% 261 237 235 +77% 133 6M 2018 6M 2019 6M 2018 6M 2019 6M 2018 6M 2019 6M 2018 6M 2019 *) w/o contracting and invoicing process cha
Slide 4: OEM Segment
OEM Segment (in m €) 6M 2018 6M 2019 Change Revenues 886 989 12% Military Business 199 216 9% Commercial Business 687 773 13% EBIT adj. 229 243 6% EBIT adj. margin % 25.8% 24.5% • US$ Commercial business growth: ~ 5% • Military revenues up by 9% • EBIT adj. margin slightly down due to business mix 2
Slide 5: Commercial MRO
Commercial MRO (in m €) 6M 2018 6M 2019 Change Revenues 1,289 1,287 0% EBIT adj. 106 122 16% EBIT adj. margin % 8.2% 9.5% • Organic Revenue growth ~ 7% • EBIT adj. margin increase due to process change*) and performance MTU Zhuhai *) please see „Q1 2019 Results“ presentation page 4 25 July 2019 H1 2
Slide 6: Guidance 2019 Update – EBIT and FCF expectations increased
Guidance 2019 Update – EBIT and FCF expectations increased 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 lin
Slide 7: Appendix
Appendix 25 July 2019 H1 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 5 %
Appendix Group Order Book up 5 % +5% 18.5 bn€ 17.6 bn€ Order book 2018/12/31 Order book 2019/06/30 25 July 2019 H1 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 July 25, 2019 (% of net exposure) in m$ 1,410 (=94%) 1,130 (=65%) 740 (=41%) 2019 2020 2021 Average hedge 1.17 1.19 1.19 rate (US$/€) 25 July 2019 H1 2019 Results - Investor Relations 9 © MTU Aero Engines AG. The information contained her
Slide 10: Profit & Loss
Appendix Profit & Loss Q2 2018 Q2 2019 Change 6M 2018 6M 2019 Change Revenues 1,132 1,112 -2% 2,149 2,243 4% Total cost of sales -925 -897 -1,726 -1,790 Gross profit 207 215 4% 422 453 7% Gross profit margin % 18.3% 19.3% 19.7% 20.2% R&D according to IFRS -13 -11 -26 -28 SG&A -49 -52 -97 -105 Other
Slide 11: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators Q2 2018 Q2 2019 Change 6M 2018 6M 2019 Change EBIT reported 147 165 12% 309 340 10% Adjustment (PPA Depreciation & Amortization) 5 5 11 11 Adjustment (IAE Upshare) 8 8 15 15 EBIT adjusted 160 178 11% 335 365 9% thereof P&L of companies a
Slide 12: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. Q2 2018 Q2 2019 Change 6M 2018 6M 2019 Change Revenues Group 1,132 1,112 -2% 2,149 2,243 4% OEM Commercial 368 387 5% 687 773 13% OEM Military 108 111 3% 199 216 9% MRO 670 632 -6% 1,289 1,287 0% Consolidation -14 -19 -26 -33 EBIT adjusted Group 160 178 11% 33
Slide 13: Research & Development
Appendix Research & Development Q2 2018 Q2 2019 Change 6M 2018 6M 2019 Change Total R&D 46 54 17% 99 112 13% Customer funded R&D -6 -10 -66% -12 -16 -35% Company expensed R&D 40 44 10% 87 96 10% Capitalization of R&D -18 -22 -43 -49 Amortisation 2 5 7 10 Total R&D impact P&L (on EBIT) 25 27 9% 51 57
Slide 14: Financial Result
Appendix Financial Result Q2 2018 Q2 2019 Change 6M 2018 6M 2019 Change Interest income 2 1 -50% 3 4 13% Interest expense -2 -4 -95% -4 -8 -82% Interest result 0 -3 <-300% -1 -4 -267% Financial result on other items 6 -14 -4 -14 US$ / non cash valuations / others 9 -10 3 -6 Interest for pension prov
Slide 15: MTU’s Cash development January – June 2019
Appendix MTU’s Cash development January – June 2019 36 Free Cashflow: +235 -141 0 -30 1 406 -232 29 3 Adjusted Non-operating 135 99 exceptional items: -29 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Financing pay
Slide 16: Cash Flow
Appendix Cash Flow (in m €) 6M 2018 6M 2019 Change Net Income IFRS 219 229 5% Depreciation and amortization 96 121 Change in provisions and liabilities 36 77 Change in working capital -52 -41 Taxes 19 20 Interest, derivatives, others 13 -1 Cash Flow from operating activities 330 406 23% Net Investme
Slide 17: Net debt
Appendix Net debt (in m €) 31.12.2018 30.06.2019 Change Bonds and notes 100 98 Convertible bond 483 484 Financial liabilities to bank 54 40 thereof Revolving Credit Facility 15 0 thereof Note Purchase Agreement 30 30 Financial lease liabilities 10 138 Loans 35 1 Financial liabilities arising from pr
Slide 18: Working capital
Appendix Working capital (in m €) 31.12.2018 30.06.2019 Change Inventories 996 1,055 Prepayments -293 -438 Receivables 1,996 2,077 Payables -1,331 -1,286 Working Capital 1,368 1,408 3% 25 July 2019 H1 2019 Results - Investor Relations 18 © MTU Aero Engines AG. The information contained herein is pro
Slide 19: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2018 30.06.2019 Change Intangible assets 1,073 1,114 Property, plant, equipment 799 969 other non-current assets 1,844 1,859 Total non-current assets 3,716 3,942 6% Current assets 3,135 3,304 5% Total assets 6,851 7,245 6% Equity 2,144 2,194 2% Non-current liabi
Slide 20: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization Q2 2018 Q2 2019 Change 6M 2018 6M 2019 Change OEM 40 44 79 87 MRO 8 17 17 34 Total depreciation / amortization* 49 61 26% 96 121 26% PPA OEM 5 5 9 9 PPA MRO 1 1 1 1 IAE Upshare OEM 8 8 15 15 PPA depreciation / amortization & IAE Upshare amortization (EBIT adj
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