Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — FY2023 Earnings Presentation
27 slides from Mtu Aero Engines's earnings presentation, Feb 29, 2024
Slide 1: Preliminary FY 2023 Results
Preliminary FY 2023 Results Conference call with Analysts and Investors 02/29/2024
Slide 2: Review 2023: Air traffic almost recovered to 2019 levels
Review 2023 AIR TRAFFIC ALMOST RECOVERED TO 2019 LEVELS I RPK 2023 reached 98% of 2019 level I RPK 2024 expected to grow 9.8% compared to 2023 (or up 4.5% 2023 2024 compared to 2019) I Domestic RPKs have exceeded 2019 levels since April 2023 I International RPK reached 95% of pre-Covid level 2019 I
Slide 3: Review 2023: Capacity investment and GTF fleet management plan
Review 2023 ONGOING INVESTMENT IN MTU CAPACITY MTU PLAYS KEY ROLE IN SOLUTION OF GTF FLEET MANAGEMENT PLAN @ MTU Munich: I Very close collaboration with P&W I New turbine disk center project finalized, production to start 4/24 I Determining factor is to increase MRO capacity, reduce TAT and secure p
Slide 4: Review 2023: Technology roadmap and military programs
Review 2023 FURTHER PROGRESS OF OUR TECHNOLOGY ROADMAP GOOD PROGRESS ON MILITARY TECHNOLOGY PROGRAMS I Project SWITCH progressing I Demonstrator phase 1b contract signed for FCAS I Flying fuel cell leading to Clean Aviation project HEROPS I National contract for additional technology studies within
Slide 5: MTU – Strong execution and excellent growth prospects
Review 2023 MTU – STRONG EXECUTION AND EXCELLENT GROWTH PROSPECTS I Another record year in 2023 in adjusted terms I Guidance 2024 sees growth in all business segments I Target 8-1-25 confirmed I Dividend of 2.00 Euro to be proposed to the AGM 2024 February 29 Preliminary FY 2023 Results - Investor R
Slide 6: Guidance 2023 achieved
Guidance 2023 achieved Guidance 2023 Actuals 2023 Revenues adjusted* ~ 6.1 – 6.3 bn€ 6.3 bn€ EBIT adjusted * >800 m€ 818 m€ (12.9%) FCF adjusted > 2022 actuals (326 m€) 352 m€ Actuals 2023 Revenues reported 5.4 bn€ EBIT reported -161 m€ *) in 2023 adjusted by PW1100G Power Metal issue Prelimin
Slide 7: Financial Highlights 2023
Financial Highlights 2023 Revenues* EBIT adj. Net income adj. Free Cash Flow adj. (in m€) (in m€) (in m€) (in m€) 818 6.326 (12,9%) +19% +25% 5.330 655 (12,3%) 594 +25% 476 +8% 352 326 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 * in 2023 adjusted Preliminary FY 2023 Results - In
Slide 8: OEM Segment
OEM Segment (in m €) FY 2022 FY 2023 Change Revenues* 1,831 2,212 21% Military Business 496 538 8% Commercial Business* 1,335 1,675 25% EBIT adj. 387 488 26% EBIT adj. margin % 21.1% 22.1% • Organic US$ Commercial revenues up by 20% • Military revenues up by 8% • EBIT margin up due to business mix *
Slide 9: Commercial MRO
Commercial MRO (in m €) FY 2022 FY 2023 Change Revenues 3,616 4,225 17% EBIT adj. 268 329 23% EBIT adj. margin % 7.4% 7.8% • Organic US$ Revenues up by 20% • EBIT margin up due to business mix 9 2024 February 29 Preliminary FY 2023 Results - Investor Relations
Slide 10: Guidance 2024 – Growth in all business segments
Guidance 2024 – Growth in all business segments ORGANIC REVENUE Military Commercial OE Total Group Sales EBIT adj. margin ~ up low to mid teens % ~ up low to mid twenties % EUR 7.3 – 7.5 bn € > 12% Net Income adj. FCF Growth in line with EBIT adj. Low triple digit million € Commercial Commercial MRO
Slide 11: Appendix
Appendix 11 2024 February 29 Preliminary FY 2023 Results - Investor Relations
Slide 12: Group Order Book up 10%
Appendix Group Order Book up 10% 10% 24.4 bn€ 22.3 bn€ Order book 2022/12/31 Order book 2023/12/31 12 2024 February 29 Preliminary FY 2023 Results - Investor Relations
Slide 13: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of February 29, 2024 in m$ 1,460 1,020 440 20 2024 2025 2026 2027 Average hedge rate (€/US$) 1.13 1.12 1.09 1.12 13 2024 February 29 Preliminary FY 2023 Results - Investor Relations
Slide 14: Profit & Loss
Appendix Profit & Loss (in m €) Q4 2022 Q4 2023 Change FY 2022 FY 2023 Change Revenues 1,513 1,711 13% 5,330 5,363 1% Revenues adjusted* 1,513 1,717 13% 5,330 6,326 19% Total cost of sales -1,243 -1,389 -4,475 -5,245 Gross profit 270 321 19% 855 118 -86% R&D according to IFRS -30 -32 -106 -114 SG&A
Slide 15: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) Q4 2022 Q4 2023 Change FY 2022 FY 2023 Change EBIT reported 177 249 41% 508 -161 -132% Adjustment (PPA Depreciation & Amortization) 5 5 20 19 Adjustment (IAE Upshare) 6 6 23 23 Adjustment (Impairment / Ukraine Impacts) 19 0 104
Slide 16: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) Q4 2022 Q4 2023 Change FY 2022 FY 2023 Change Revenues 1,513 1,711 13% 5,330 5,363 1% Adjustment (PW1100G Powder Metal) 0 -40 0 917 Adjustment (Exceptional Items Credit- and Litigation Risk) 0 23 0 23 Adjustment (IAE Upshare) 0
Slide 17: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (in m €) Q4 2022 Q4 2023 Change FY 2022 FY 2023 Change Revenues Group* 1,513 1,717 13% 5,330 6,326 19% OEM Commercial* 388 457 18% 1,335 1,675 25% OEM Military 187 171 -9% 496 538 8% MRO 973 1,117 15% 3,616 4,225 17% Consolidation -36 -29 -117 -111 EBIT adjust
Slide 18: Research & Development
Appendix Research & Development (in m €) Q4 2022 Q4 2023 Change FY 2022 FY 2023 Change Total R&D 74 82 11% 265 306 15% Customer funded R&D -20 -28 -41% -65 -83 -28% Company expensed R&D 54 53 0% 201 223 11% Capitalization of R&D -15 -16 -66 -77 Amortisation 8 8 30 32 Impairment 0 0 63 0 Total R&D im
Slide 19: Financial Result
Appendix Financial Result (in m €) Q4 2022 Q4 2023 Change FY 2022 FY 2023 Change Interest income 4 9 102% 7 29 >300% Interest expense -7 -13 -94% -29 -41 -42% Interest result -2 -4 -77% -22 -12 46% Financial result on other items -12 -9 -23 -32 US$ / non cash valuations / others -9 -1 -12 -4 Interes
Slide 20: MTU's Cash development January – December 2023
Appendix MTU’s Cash development January – December 2023 60 Free Cashflow: +352 -420 0 -5 0 777 -294 -3 5 883 823 Adjusted Non-operating exceptional items: -5 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Financing
Slide 21: Cash Flow
Appendix Cash Flow (in m €) FY 2022 FY 2023 Change Net Income IFRS 333 -97 -129% Depreciation and amortization 356 332 Change in provisions and liabilities 219 964 Change in working capital -293 -81 Taxes 54 -345 Interest, derivatives, others 59 5 Cash Flow from operating activities 728 777 7% Net I
Slide 22: Net debt
Appendix Net debt (in m €) 31.12.2022 31.12.2023 Change Bonds and notes 605 607 Convertible bonds 531 489 Financial liabilities to bank 0 7 Revolving Credit Facility 0 0 Financial lease liabilities 166 170 Loans from related companies and third parties 0 0 Other financing liabilities (financing comp
Slide 23: Working capital
Appendix Working capital (in m €) 31.12.2022 31.12.2023 Change Inventories 1,514 1,629 Prepayments -363 -347 Receivables 2,710 3,000 Payables -1,960 -2,373 Working Capital 1,901 1,908 0% 23 2024 February 29 Preliminary FY 2023 Results - Investor Relations
Slide 24: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2022 31.12.2023 Change Intangible assets 1,151 1,200 Property, plant, equipment 1,384 1,501 other non-current assets 1,611 1,904 Total non-current assets 4,146 4,604 11% Current assets 5,085 5,599 10% Total assets 9,230 10,204 11% Equity 3,107 2,933 -6% Non-curr
Slide 25: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization (in m €) Q4 2022 Q4 2023 Change FY 2022 FY 2023 Change OEM 54 59 271 215 MRO 25 36 87 116 Total depreciation / amortization* 78 95 22% 357 331 -7% PPA OEM 5 5 18 18 PPA MRO 0 0 2 0 IAE Upshare OEM 6 6 23 23 PPA depreciation / amortization & IAE Upshare amorti
Slide 26: Guidance for PPA and IAE Upshare Amortization; R&D Amortization
Appendix Guidance for PPA and IAE Upshare Amortization (in m€) 2023 2024E 2025E 2026E PPA depreciation / amortization 19 19 19 19 IAE Upshare 23 23 23 23 Adjustments PPA / IAE Upshare 42 42 42 42 Guidance for R&D Amortization (in m€) 2023 2024E 2025E 2026E R&D amortization 32 34 37 41 26 2024 Februa
Slide 27: 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