Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q2 2014 Earnings Presentation
23 slides from Mtu Aero Engines's earnings presentation, Jul 24, 2014
Slide 1: Q2 2014 Results - MTU Aero Engines
Q2 2014 Results - MTU Aero Engines Conference Call with Investors and Analysts 24 July 2014
Slide 2: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance • Appendix July 24, 2014 Investor Relations 2
Slide 3: Business Highlights
Business Highlights • IATA passenger traffic up 6.2% ytd. in May 2014 • Program stake of 4% secured on GE9x • Order wins of € 1.3 bn at Farnborough Air Show 3 July 24, 2014 Investor Relations 3
Slide 4: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance • Appendix July 24, 2014 Investor Relations 4
Slide 5: Financial Highlights
Financial Highlights Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 2000 1.775 +2% 1.816 300 9.6% 9.4% 250 10% 1500 200 170 +1% 171 8% 1000 150 5% 100 500 3% 50 0 0 0% 6M 2013 6M 2014 6M 2013 6M 2014 Net Income adj. / EPS adj. (m€ / €) * / ** Free Cash Flow (m€) 150 2.11 2.18 30 25 2,0 107 111
Slide 6: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of July 24, 2014 (% of net exposure) (mUS$) 807 (=80%) 640 (=60%) 400 20 (=36%) (=2%) 2014 2015 2016 2017 1.31 1.30 1.32 1.28 Average hedge rate (US$/EUR) July 24, 2014 Investor Relations 6
Slide 7: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance • Appendix July 24, 2014 Investor Relations 7
Slide 8: Commercial OEM Business and Military Business
Commercial OEM Business • 4% program stake in GE9x widebody engine • Over 6,000 GTF engines (incl. options) on order • GTF engine testing progressing further • First GTF engines delivered to Mitsubishi and Airbus • High thrust version on A321neo launched • GTF on A320neo with additional 2% fuel burn
Slide 9: OEM Segment
OEM Segment Order book 31/12/2013 30/06/2014 Change Order book in m€ 5,403.6 6,240.3 15% Commercial business in m US$ 6,185.8 7,373.4 19% Military business in m€ 918.2 841.7 -8% (in m€) 6M 2013 6M 2014 Change Revenues 1,176.8 1,258.4 7% Commercial business 953.6 1,032.9 8% Military business 223.2 22
Slide 10: OEM Segment
OEM Segment (in m€) 6M 2013 6M 2014 Change Revenues 1,176.8 1,258.4 7% Gross profit 174.4 180.1 3% Gross profit margin 14.8% 14.3% R&D according to IFRS 44.7 36.3 -19% EBIT adj. 115.3 122.5 6% EBIT adj. margin 9.8% 9.7% • Gross Profit margin slightly down to 14.3% • R&D decreased by € 8.4 m • EBIT m
Slide 11: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance • Appendix July 24, 2014 Investor Relations 11
Slide 12: Commercial MRO Business
Commercial MRO Business (in mUS$) 31/12/2013 30/06/2014 Change Contract volume 5,476.4 5,345.3 -2% (in m€) 6M 2013 6M 2014 Change Revenues 613.4 572.9 -7% Gross profit 75.7 67.2 -11% Gross profit margin 12.3% 11.7% EBIT adj. 54.3 48.0 -12% EBIT adj. margin 8.9% 8.4% • Contract volume roughly flat at
Slide 13: Update on Guidance 2014
Update on Guidance 2014 in m€ FY 2013 adjusted Guidance 2014 Guidance 2014 for MTU Zhuhai old new Revenues 3,574.1 ~3,750 ~ 3,650 EBIT adj. 373.1 ~ stable ~ 375 10.4% Net income adj. 235.7 ~ stable ~ 245 • Series revenues expected to increase by ~ 10% • Spare parts revenues expected to grow high sin
Slide 14: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance • Appendix July 24, 2014 Investor Relations 14
Slide 15: Profit & Loss Highlights – New Underlying tax rate of 30%
Appendix Profit & Loss Highlights – New Underlying tax rate of 30% Q2 2013 Q2 2014 Change 6M 2013 6M 2014 Change Revenues 868.9 902.8 4% 1,774.9 1,815.8 2% EBIT adj. 81.4 81.7 0% 169.7 170.7 1% Thereof „at equity“ results 3.2 3.7 8.2 7.6 Interest result -2.0 -2.2 -5.3 -4.7 Interest for pension provi
Slide 16: Profit & Loss
Appendix Profit & Loss (in m€) Q2 2013 Q2 2014 Change 6M 2013 6M 2014 Change Revenues 868.9 902.8 4% 1,774.9 1,815.8 2% Total Cost of Sales -749.9 -782.8 -1,521.7 -1,565.7 Gross Profit 119.0 120.0 1% 253.2 250.1 -1% Gross Profit Margin 13.7% 13.3% 14.3% 13.8% R&D company funded -17.8 -16.7 -46.5 -38
Slide 17: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (in m€) Q2 2013 Q2 2014 Change 6M 2013 6M 2014 Change Revenues Group 868.9 902.8 4% 1,774.9 1,815.8 2% OEM Commercial 465.2 532.4 14% 953.6 1,032.9 8% OEM Military 111.0 108.9 -2% 223.2 225.5 1% MRO 300.3 269.3 -10% 613.4 572.9 -7% Consolidation -7.6 -7.8 -15.
Slide 18: Research & Development
Appendix Research & Development (in m€) Q2 2013 Q2 2014 Change 6M 2013 6M 2014 Change Company expensed R&D 28.7 26.4 -8% 68.8 60.0 -13% OEM 27.4 25.2 66.6 57.9 MRO 1.3 1.2 2.2 2.1 Capitalization of R&D -10.9 -9.7 -22.3 -21.6 OEM -10.7 -9.7 -21.9 -21.6 MRO -0.2 -0.4 R&D according to IFRS 17.8 16.7 -6
Slide 19: Cash Flow
Appendix Cash Flow (in m€) 6M 2013 6M 2014 Change Net Income IFRS 73.0 86.8 19% Depreciation and amortization 79.0 76.3 Change in provisions * -78.4 -6.9 Change in Working Capital -1.9 2.7 Taxes 1.2 -79.1 Interest, derivatives, others -1.6 1.2 Cash Flow from operating activities 71.3 81.0 14% Cash F
Slide 20: Working Capital
Appendix Working Capital (in m€) 31/12/2013 30/06/2014 Change Change in % Gross Inventories 745.2 686.9 -58.3 Prepayments -547.8 -517.5 30.3 Receivables 784.9 826.8 41.9 Payables -826.5 -843.1 -16.6 Working Capital 155.8 153.1 -2.7 -2% July 24, 2014 Investor Relations 20
Slide 21: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) (in m€) Q2 2013 Q2 2014 6M 2013 6M 2014 Total depreciation / amortization MTU total 39.2 38.4 79.0 76.3 OEM 31.6 30.7 63.3 61.5 MRO 7.6 7.7 15.7 14.8 PPA depreciation /amortization MTU total 8.9 6.3 17.9 12.5 OEM 8.1 5.6 16.2 11.2 MRO 0.8 0.7 1.7 1.3
Slide 22: Net debt of € 423 m
Appendix Net debt of € 423 m Dec. 31, 2013 June 30, 2014 (m€) Financial assets 750 Cash and cash 650 661 Equivalents / 27 46 Other financial assets 600 Net debt 271 Net debt 268 450 € 355 m € 423 m 295 300 Financial liabilities 238 Euro Bond & Private Placement 135 V2500 / IAE Flight-Hour- 352 347 1
Slide 23: 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