Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q1 2015 Earnings Presentation
25 slides from Mtu Aero Engines's earnings presentation, Apr 28, 2015
Slide 1: Q1 2015 Results - MTU Aero Engines
Q1 2015 Results - MTU Aero Engines Conference Call with Investors and Analysts 28 April 2015
Slide 2: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 28 April 2015 Investor Relations 2
Slide 3: Business Highlights Q1 2015
Business Highlights Q1 2015 • IATA passenger traffic up 5.3% ytd. in Feb. 2015 • Oil price at around 50-60 US$ per barrel • Favorable development of US$ rate • Q1 2015 results in line with our expectations • Preparation for ramp up on track • Inauguration of new building at MTU Aero Engines Polska •
Slide 4: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 28 April 2015 Investor Relations 4
Slide 5: Financial Highlights Q1 2015
Financial Highlights Q1 2015 Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 9,7% 1.200 120 8,9% 10% +20% 1.000 1.100 100 +10% 8% 98 800 913 80 89 6% 600 60 4% 400 40 20 2% 200 0 0 0% 3M 2014 3M 2015 3M 2014 3M 2015 Net Income adj. / EPS adj. (m€ / €)* Free Cash Flow (m€) 90 1,50 70 1,34 80 60 1
Slide 6: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of April 28, 2015 (% of net exposure) (mUS$) 873 (=82%) 560 (=52%) 400 (=33%) 60 (=4%) 2015 2016 2017 2018 Average hedge rate (US$/€): 1.27 1.30 1.25 1.16 28 April 2015 Investor Relations 6
Slide 7: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 28 April 2015 Investor Relations 7
Slide 8: Commercial OEM Business
Commercial OEM Business • Over 6,300 GTF engines on firm order or optioned • PurePower engines have completed 16,000 hours of testing • PW814 (Gulfstream) achieved its certification in Feb. 2015 • 1st flight CSeries CS300 in Feb. 2015 • Development activities for GE9X intensified Military Business •
Slide 9: OEM Segment
OEM Segment Order book 31/12/2014 31/03/2015 Change Order book in m€ 6,763.6 7,715.6 14% Commercial business in m US$ 7,450.0 7,558.0 1% Military business in m€ 627.4 690.8 10% (in m€) 3M 2014 3M 2015 Change Revenues 617.1 726.7 18% Commercial business 500.5 635.5 27% Military business 116.6 91.2 -2
Slide 10: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 28 April 2015 Investor Relations 10
Slide 11: Commercial MRO Business
Commercial MRO Business • Sales campaigns won at a value of 900 m US$ in Q1 15 • EBIT at new record level • New organizational structure in MRO successfully implemented • MTU Maintenance completes 15,000 engine shop visits 28 April 2015 Investor Relations 11
Slide 12: Commercial MRO Business
Commercial MRO Business (in mUS$) 31/12/2014 31/03/2015 Change Contract volume 5,357.8 5,342.5 0% (in m€) 3M 2014 3M 2015 Change Revenues 303.6 383.9 26% EBIT adj. 27.0 38.1 41% EBIT adj. margin 8.9% 9.9% • Contract volume stable • Organic revenues up by 4% • EBIT margin increased due to USD 28 Apri
Slide 13: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 28 April 2015 Investor Relations 13
Slide 14: Guidance 2015 (unchanged - to be reviewed after H1)
Guidance 2015 (unchanged - to be reviewed after H1) in m€ FY 2014 Guidance 2015 Revenues 3,913.9 ~ 4,400 EBIT adj. 382.7 ~ 420 9.8% Net income adj. 253.3 ~285 • Guidance 2015 based on 1,20 US$/€ • Commercial OE US$ sales up high single digit • Commercial US$ spare parts sales up mid single digit • M
Slide 15: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 28 April 2015 Investor Relations 15
Slide 16: Net Income adjusted
Appendix Net Income adjusted 3M 2014 3M 2015 Change Revenues 913.0 1,099.5 20% EBIT adj. 89.0 97.7 10% Thereof P/L of companies accounted „at equity“ 3.9 9.5 Interest result -2.5 -0.8 Interest for pension provisions -5.3 -3.5 Financial result -7.8 -4.3 45% EBT adj. * 81.2 93.4 15% Taxes ** -25.2 -25
Slide 17: Profit & Loss
Appendix Profit & Loss (in m€) 3M 2014 3M 2015 Change Revenues 913.0 1,099.5 20% Total Cost of Sales -782.9 -974.0 Gross Profit 130.1 125.5 -4% Gross Profit Margin 14.2% 11.4% R&D company funded -21.7 -15.6 SG&A -37.8 -38.1 Other operating income (expense) 2.8 2.6 P/L of companies accounted „at equi
Slide 18: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (m€) 3M 2014 3M 2015 Change Revenues Group 913.0 1,099.5 20% OEM Commercial 500.5 635.5 27% OEM Military 116.6 91.2 -22% MRO 303.6 383.9 26% Consolidation -7.7 -11.1 EBIT adj. Group 89.0 97.7 10% OEM (Commercial / Military) 60.8 58.1 -4% MRO 27.0 38.1 41% Cons
Slide 19: Research & Development
Appendix Research & Development (m€) 3M 2014 3M 2015 Change Company expensed R&D 33.6 43.3 29% OEM 32.7 42.3 MRO 0.9 1.0 Capitalization of R&D -11.9 -27.7 OEM -11.9 -27.7 MRO 0.0 0.0 R&D according to IFRS 21.7 15.6 -28% Customer funded R&D 9.7 8.7 Total R&D 43.3 52.0 20% 28 April 2015 Investor Relat
Slide 20: MTU's Cash development January – March 2015
Appendix MTU’s Cash development January – March 2015 32.5 Free Cashflow: +61.2 111,2 -60,9 28,3 -23,6 - 16,7 5,8 -10,9 0,7 97,1 64,6 Adjusted Non-operating exceptional items: +10.9 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash Operating Investi
Slide 21: Cash Flow
Appendix Cash Flow (m€) 3M 2014 3M 2015 Change Net Income IFRS 46.8 21.0 -55% Depreciation and amortization 37.9 34.7 Change in provisions * -0.9 23.5 Change in Working Capital 27.4 -8.0 Taxes -74.3 -15.0 Interest, derivatives, others -1.1 55.0 Cash Flow from operating activities 35.8 111.2 211% Cas
Slide 22: Net financial debt increased to 896.8 m€ mainly due to US$ derivatives
Appendix Net financial debt increased to 896.8 m€ mainly due to US$ derivatives (in m€) 31/12/2014 31/03/2015 Change Corporate bonds 352.7 355.5 Financial liabilities arising from IAE V2500 414.6 462.8 Financial liabilities to bank 39.7 30.0 Note Purchase Agreement 30.1 30.0 RCF 9.6 0 Liabilities to
Slide 23: Working Capital
Appendix Working Capital (m€) 31/12/2014 31/03/2015 Change Change in % Gross inventories 741.0 791.5 50.5 Prepayments -485.7 -486.9 -1.2 Receivables 1,004.2 977.9 -26.3 Payables -790.4 -805.4 -15.0 Working Capital 469.1 477.1 8.0 2% 28 April 2015 Investor Relations 23
Slide 24: Depreciation / Amortization (in m€) – PPA & IAE upshare
Appendix Depreciation / Amortization (in m€) – PPA & IAE upshare (in m€) 3M 2014 3M 2015 Total depreciation / amortization MTU total 37.9 40.2 OEM 30.8 32.2 MRO 7.1 8.0 PPA & IAE upshare depreciation /amortization MTU total 11.7 13.8 PPA OEM 5.6 5.5 PPA MRO 0.6 0.6 IAE upshare (OEM) 5.5 7.7 Deprecia
Slide 25: 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