Montana Aerospace AG · SIX:AERO
Montana Aerospace — Q1 2022 Earnings Presentation
25 slides from Montana Aerospace's earnings presentation, May 5, 2022
Slide 1: Q1 2022 Earnings Presentation
Montana Aerospace AG 05 May 2022 Q1 2022 Earnings Presentation
Slide 2: Disclaimer
DISCLAIMER THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNL
Slide 3: Q1 2022 Earnings Call
Q1 2022 Earnings Call Presenters Marc Vesely r.Riha Head of M&A and IR -3- Montana Aerospace
Slide 4: Report Q1 2022
REPORT Q1 2022
Slide 5: Solid and sustainable growth verifies guidance assumptions
SOLID AND SUSTAINABLE GROWTH VERIFIES GUIDANCE ASSUMPTIONS Net Sales (EURm) Adj. EBITDA (EURm) +43,6% 243,3 +68,2% 169,4 15,9 9,5 Q1 2021 Q1 2022 Q1 2021 Q1 2022 CLEAR DEVELOPMENT TOWARDS ANNOUNCED GUIDANCE - 5-
Slide 6: Exceptional sales performance in all three segments
EXCEPTIONAL SALES PERFORMANCE IN ALL THREE SEGMENTS in EURm +22,2% +66,5% 108,6 89,9 +71,0% 88,9 54,0 45,4 26,5 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 - 6-
Slide 7: Solid and sustainable growth verifies guidance assumptions
SOLID AND SUSTAINABLE GROWTH VERIFIES GUIDANCE ASSUMPTIONS in EURm +22,2% +66,5% 112,9 108,6 89,2 89,9 88,9 89,0 92,2 79,5 +71,3% 54,0 62,3 39,6 45,4 26,5 28,0 28,4 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 - 7-
Slide 8: Financials
FINANCIALS -8- Montana Aerospace
Slide 9: Fast recovery, financials approaching pre-Covid level
MONTANA AEROSPACE – FAST RECOVERY, FINANCIALS APPROACHING PRE-COVID LEVEL in EURm Q1 2021 Q1 2022 yoy change Net Sales 169,4 243,3 +43,6% ✓ Adj. EBITDA 9,5 15,9 +67,4% ✓ CAPEX spent* 42,0 21,8 -48,1% ✓ Reflecting TWC** 265,2 409,7 +54,5% ~ acquisition of ASCO Total Assets** 1.792,4 2.155,8 +20,3% ✓
Slide 10: Sales and adj. EBITDA reflecting finalization of CAPEX projects
SALES AND ADJ. EBITDA REFLECTING FINALIZATION OF CAPEX PROJECTS Net Sales Adjusted EBITDA(1) Net income in EURm in EURm in EURm 43,6% 67,4% +6,4m 243,3 15,9 169,4 9,5 -7,2 Q1 2021 Q1 2022 Q1 2021 Q1 2022 -13,6 Q1 2021 Q1 2022 ▪ Strong sales recovery, supported by ▪ MSOP cost makes up for majority of
Slide 11: Net sales & adj. EBITDA by segment
NET SALES & ADJ. EBITDA BY SEGMENT NET SALES in EURm Q1 2021 Q1 2022 YoY change Aerospace 54,0 89,9 +66,5% E-Mobility 26,5 45,3 +70,9% Energy 88,9 108,6 +22,2% Adj. EBITDA* in EURm Q1 2021 Q1 2022 YoY change Aerospace 6,2 11,9 +91,9% E-Mobility 1,1 4,2 +295,3% Energy 2,6 1,4 -46,2% * Segment adj. EB
Slide 12: Positive development of key KPIs
POSITIVE DEVELOPMENT OF KEY KPIs Production Performance Personnel expenses Other operating expenses in EURm in EURm in EURm ▲ in finished & unfinished goods Net Sales 34,7% 30,7% 42,5% 50,1 33,6 260,3 17,0 37,2 25,7 182,7 13,3 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2021 ▪ Output strong as delive
Slide 13: Solid financial basis for future growth – net debt, equity ratio, employees
SOLID FINANCIAL BASIS FOR FUTURE GROWTH – CF STATEMENT + BALANCE SHEET INCLUDE ASCO ACQUISITION (BASED ON PRELIMINARY FIGURES) Net Debt Equity Ratio Number of Employees in EURm in % in absolute figures +360,6m 23,0% -8,4% 442,4 51% 6.830 vendor In-organic 115,0 42% 5.554 1.100 growth loan** Organic
Slide 14: Solid financial basis – trade working capital and balance sheet structure
SOLID FINANCIAL BASIS FOR FUTURE GROWTH – CF STATEMENT + BALANCE SHEET INCLUDE ASCO ACQUISITION (BASED ON PRELIMINARY FIGURES) Trade Working Capital Balance Sheet Structure in EURm in EURm +57% 414,2 2.156 2.156 263,7 342,9 Non-Current 909 Assets 1.121 Equity Inventories 245,4 Trade 228,5 Receivable
Slide 15: Solid financial basis – operating cashflow and CAPEX
SOLID FINANCIAL BASIS FOR FUTURE GROWTH – CF STATEMENT + BALANCE SHEET INCLUDE ASCO ACQUISITION (BASED ON PRELIMINARY FIGURES) Operating Cashflow Simplified** Operating Cashflow CAPEX in EURm in EURm in EURm +11,8 -20,2 -14,1 17,2 42,0 21,8 5,4 -23,3 -37,4 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1
Slide 16: Integration of ASCO
INTEGRATION OF ASCO - 16 - Montana Aerospace
Slide 17: Collaboration of two leading players creates a strong aerostructures player
COLLABORATION OF TWO LEADING PLAYERS CREATES A STRONG AEROSTRUCT URES PLAYER BEST POSITIONED TO MEET CUSTOMER NEEDS OF TOMORROW #1 Aerostructures Supplier - Quality - Costs - Reliability - Innovation - Carbon Footprint #1 etc… - 17 - Montana Aerospace
Slide 18: Deal structure
DEAL STRUCTURE ASCO PRODUCTS (an excerpt) DEAL TERMS Payment split in cash & share consideration Earn-out option until 2025 amounting to EUR 30m INVESTMENT RATIONALE Goal: 15% EBITDA margin at EUR 300m revenue On top, high synergy potential in Group, adding further benefit - 18 - Montana Aerospace
Slide 19: Guidance 2022
GUIDANCE 2022 - 19 - Montana Aerospace
Slide 20: Build rate assumptions: an expected new normal
MONTANA AEROSPACE BUILD RATE ASSUMPTIONS: AN EXPECTED NEW NORMAL Montana Aerospace management expects build rates to stabilize at new levels Build rates by key platforms 2019 2020 2021 pre-covid covid-figures covid-figures 2022 2023 2024 2025 A220 n/a n/a n/a 6/mo 8/mo 10/mo 10/mo A320 60/mo 34/mo 4
Slide 21: Minimal exposure to region mitigates potential company risk
MINIMAL EXPOSURE TO REGION MITIGATES POTENTIAL COMPANY RISK UKRAINE (UA) RUSSIA (RU) For 2022, direct impact of approx. €8.0m sales at risk o/w €4.5m have already been received as pre-payment Overall, indirect risks on energy price development as well as impact on raw material impact on prices raw m
Slide 22: Guidance for 2022
GUIDANCE FOR 2022 Total Sales Guidance Sales Split Segment Sales Guidance in EURbn in EURbn in EURm, approximated ~45% >1.1 >1.1 >0.9 ~440 0.79 ~190 ~500 >0.1 FY 2021 2022 Total Organic In-organic Aerospace E-Mobility Energy ▪ Sales increase driven by sustainable ▪ Total revenue estimated to grow by
Slide 23: Guidance for 2022
GUIDANCE FOR 2022 Adj. EBITDA margin (approx.) CAPEX cash-out OUTLOOK 2023 & ONWARDS in % in EURm ~10% Sales increase by 2023 -26% another ~20% >7.5 121,4 7,1 90,0 Overproportional EBITDA growth Massive CAPEX reduction FY 2021 B 2022 FY 2021 B 2022 Positive Free Cash Flow ▪ Slightly overproportional
Slide 24: Key areas of focus in 2022
KEY AREAS OF FOCUS IN 2022 2020-2021: COVID-19 2022: BUILD RATE RAMP-UP ENERGY COST INFLATION HUMAN RESOURCES TRANSPORTATION MATERIAL - Pass-through clauses cover >2/3 - Chasing for talent – skilled - Supply chain under pressure, - Stable and diversified supply of current global energy cost rise emp
Slide 25: Montana Aerospace
- 25 - Montana Aerospace