Slide 1: Q2 2016 Results
Q2 2016 Results Conference Call with Investors and Analysts 7/26/2016 – Investor Relations
Slide 2: Business Highlights Q2 2016
Business Highlights Q2 2016 • Passenger traffic up 6.0 % ytd in May • No direct impact from BREXIT expected • Successful Farnborough Air Show • Bombardier CS100 aircraft with PW1500G engines EIS on 15 July 2016 • Initial operations of A320neo equipped with PW1100G-JM highly successful • New record M
Slide 3: Financial Highlights 2016 – MTU on track to achieve guidance
Financial Highlights 2016 – MTU on track to achieve guidance Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 11,1% 2.500 300 12% 4% 9,7% 2.299 250 10% 2.000 2.202 +19% 254 200 8% 1.500 213 150 6% 1.000 100 4% 500 50 2% 0 0 0% 6M 2015 6M 2016 6M 2015 6M 2016 Net Income adj. / EPS adj. (m€ / €)* F
Slide 4: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of 26 July 2016 (% of net exposure) (in m US$) 882 (=87%) 693 (=58%) 420 (=34%) 2016 2017 2018 Average hedge rate (US$/€) 1.23 1.19 1.15 26 July 2016 Q2 2016 Results - Investor Relations 4 © MTU Aero Engines AG. The information contained herein is pr
Slide 5: Commercial OEM Business Highlights in Q2 2016
Commercial OEM Business Highlights in Q2 2016 • Over 1 bn US$ order wins at Farnborough Air Show • Swiss Air has the first Bombardier CS100 powered by PW1500G engines in operation • Successful first flight of Embraer E190-E2 with PW1900G engines • FAA certification for PW1400G received; Roll out of
Slide 6: Military Business Highlights in Q2 2016
Military Business Highlights in Q2 2016 • Enhancement of TP400 Propeller Gearbox approved by EASA • Embraer KC-390 powered with V2500-E5 is making good progress with its test flights 26 July 2016 Q2 2016 Results - Investor Relations 6 © MTU Aero Engines AG. The information contained herein is propri
Slide 7: OEM Segment
OEM Segment Order book 31/12/2015 30/06/2016 Change Order book (m€) 6,830.6 6,140.8 -10% Commercial Business (mUS$) 6,888.5 6,335.9 -8% Military Business (m€) 503.3 433.8 -14% (m€) 6M 2015 6M 2016 Change Revenues 1,467.1 1,441.1 -2% Commercial Business 1,251.8 1,200.9 -4% Military Business 215.3 240
Slide 8: Commercial MRO Business Highlights in Q2 2016
Commercial MRO Business Highlights in Q2 2016 • New contract wins of around US$ 1 bn • Garuda Indonesia signed exclusive MRO contract for their CF34 engine fleet • New record sales in Q2 2016 • Continued high workload in all MRO shops 26 July 2016 Q2 2016 Results - Investor Relations 8 © MTU Aero En
Slide 9: Commercial MRO Business
Commercial MRO Business (mUS$) 31/12/2015 30/06/2016 Change Order book 6,165.4 5,999.3 -3% (m€) 6M 2015 6M 2016 Change Revenues 754.2 893.3 18% EBIT adj. 73.5 84.5 15% EBIT adj. Margin % 9.7% 9.5% • Recent campaign wins not included yet • Organic revenues up in high teens • Revenue expectation for 2
Slide 10: Guidance 2016 Update – Improved Aftermarket leads to increase in earnings expectation
Guidance 2016 Update – Improved Aftermarket leads to increase in earnings expectation Military: Stable New engine Sales (Com. OE): Mid single digit Spare parts Sales (Com. Spares): Mid single digit (ex low to mid) Commercial MRO: ~ 10% (ex high single digit) Revenues ~ 4.7 bn € Tailwind from US$ fx-
Slide 11: Appendix
Appendix 26 July 2016 Q2 2016 Results - Investor Relations 11 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 12: Net Income adj.
Appendix Net Income adj. (m€) Q2 2015 Q2 2016 Change 6M 2015 6M 2016 Change Revenues 1,102.5 1,201.3 9% 2,202.0 2,299.2 4% EBIT adj. 115.1 122.8 7% 212.8 254.1 19% Thereof P&L of companies accounted "at equity" 3.6 5.8 61% 13.1 14.1 8% Interest Result -0.2 -2.0 <-300% -1.0 -3.7 -270% Interests for p
Slide 13: Profit & Loss
Appendix Profit & Loss (m€) Q2 2015 Q2 2016 Change 6M 2015 6M 2016 Change Revenues 1,102.5 1,201.3 9% 2,202.0 2,299.2 4% Total Cost of Sales -956.7 -1,037.1 -1,930.7 -1,965.3 Gross Profit 145.8 164.2 13% 271.3 333.9 23% Gross Profit Margin 13.2% 13.7% 12.3% 14.5% R&D according to IFRS -8.7 -19.1 -24
Slide 14: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (m€) Q2 2015 Q2 2016 Change 6M 2015 6M 2016 Change Revenues Group 1,102.5 1,201.3 9% 2,202.0 2,299.2 4% OEM Commercial 616.3 644.9 5% 1,251.8 1,200.9 -4% OEM Military 124.1 115.7 -7% 215.3 240.2 12% MRO 370.3 464.5 25% 754.2 893.3 18% Consolidation -8.2 -23.8
Slide 15: Research & Development
Appendix Research & Development (m€) Q2 2015 Q2 2016 Change 6M 2015 6M 2016 Change Total R&D 50.0 55.0 10% 102.0 113.6 11% Customer funded R&D 14.2 14.3 1% -22.9 -22.4 2% Company expensed R&D 35.8 40.7 14% 79.1 91.2 15% thereof OEM 34.4 39.0 76.7 88.3 thereof MRO 1.4 1.7 2.4 2.9 Capitalization of R&
Slide 16: MTU's Cash development January – June 2016
Appendix MTU’s Cash development January – June 2016 364,4 Free Cashflow: +69,8 31,5 417,5 262,9 0,2 196 -94,7 -37,7 3,6 2,6 53,1 Adjusted Non-operating exceptional items: -31,5 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash Operating Investing l
Slide 17: Cash Flow
Appendix Cash Flow (m€) 6M 2015 6M 2016 Change Net Income IFRS 104.0 158.6 53% Depreciation and amortization 78.1 86.4 Change in provisions* 6.3 49.1 Change in Working Capital -29.4 -69.2 Taxes -17.4 -15.0 Interest, derivatives, others 28.9 -13.9 Cash Flow from operating activities 170.5 196.0 15% C
Slide 18: Net financial debt at 859 m€
Appendix Net financial debt at 859 m€ (m€) 31/12/2015 30/06/2016 Change Corporate bonds 353.2 820.2 Financial liabilities to bank 149.2 30.1 thereof Revolving Credit Facility 119.1 0.0 thereof Note Purchase Agreement 30.1 30.1 Loans from related companies 0.0 0.6 Finance lease liabilities 12.9 12.2
Slide 19: Working Capital
Appendix Working Capital (m€) 31/12/2015 30/06/2016 Change Change in % Gross inventories 894.0 931.6 37.6 Prepayments -373.8 -304.4 69.4 Receivables 1,065.8 1,091.1 25.3 Payables -861.9 -925.0 -63.1 Working Capital 724.1 793.3 69.2 10% 26 July 2016 Q2 2016 Results - Investor Relations 19 © MTU Aero
Slide 20: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) (in m€) Q2 2015 Q2 2016 6M 2015 6M 2016 Total depreciation / amortization OEM 32.8 34.4 65.0 67.9 MRO 8.1 8.6 16.1 16.9 MTU total 40.9 43.0 81.1 84.8 PPA depreciation / amortization PPA OEM 5.4 4.7 10.9 9.4 PPA MRO 0.6 0.6 1.2 1.2 IAE Upshare OEM 7.8
Slide 21: 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