Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q1 2018 Earnings Presentation
23 slides from Mtu Aero Engines's earnings presentation, May 3, 2018
Slide 1: Q1 2018 Results
Q1 2018 Results Conference Call with Investors and Analysts 03 May 2018 – Investor Relations
Slide 2: Business Highlights Q1 2018
Business Highlights Q1 2018 • Ongoing strong passenger traffic growth • Dassault launches Falcon 6X Business-Jet equipped with PW800 • GE9X first flight on 747 testbed • Further expansion of MTU Aero Engines Polska • EME Aero acquires building site in Jasionka, Poland • Production of T408 engines la
Slide 3: Update on Geared Turbofan Engines
Update on Geared Turbofan Engines • 141 GTF powered aircraft in service with 21 operators • ~700,000 GTF engine flight hours • Revised configuration as a solution for HPC knife edge seal issue approved and production resumed • Target to double production of GTF engines in 2018 unchanged • GTF powere
Slide 4: Financial Highlights Q1 2018
Financial Highlights Q1 2018 Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 1,500 300 20% 17.2% 16.2% 16% +5% 1,000 200 1,016 +11% 12% 972 175 158 8% 500 100 4% 0 0 0% 3M 2017 3M 2018 3M 2017 3M 2018 Net income adj. / EPS adj. (m€ / €) Free Cash Flow (m€) 300 3.00 100 2.18 2.39 80 +37% 83 200 2
Slide 5: OEM Segment
OEM Segment (m€) 3M 2017 3M 2018 Change Revenues 404.9 427.2 6% Commercial Business 303.9 335.9 11% Military Business 101.0 91.3 -10% EBIT adj. 105.3 123.4 17% EBIT adj. Margin % 26.0% 28.9% • IFRS15 significantly impacts OEM revenues: reduction of Commercial business due to payments to customers,
Slide 6: Commercial MRO Business
Commercial MRO Business (m€) 3M 2017 3M 2018 Change Revenues 588.4 618.2 5% EBIT adj. 52.1 51.5 -1% EBIT adj. Margin % 8.9% 8.3% • No impact from IFRS 15 on revenues and EBIT • Organic Commercial MRO revenues up by 20% driven by PW1100G-JM retrofit shop visits and ongoing strong demand • Lower profi
Slide 7: Guidance 2018 Confirmed
Guidance 2018 Confirmed Organic Growth: Military: Stable Commercial OE: Up ~30% Commercial Spares: Up mid single digit Commercial MRO: Up in the high teens EBIT adj. Moderate progression Net income adj. Growth in line with EBIT adj. CCR* Low to mid double digit * Cash Conversion Rate = Free Cash Flo
Slide 8: Appendix
Appendix 03 May 2018 Q1 2018 Results - Investor Relations 8 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 9: Group Order Book up 3%
Group Order Book up 3% +3% 15.3 bn€ 14.9 bn€ Order book 2017/12/31 Orderbook 2018/03/31 03 May 2018 Q1 2018 Results - Investor Relations 9 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 10: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of May 3, 2018 (% of net exposure) (in m US$) 1,160 (=87%) 750 (=54%) 90 (=6%) 2018 2019 2020 Average hedge rate (US$/€) 1.16 1.18 1.24 03 May 2018 Q1 2018 Results - Investor Relations 10 © MTU Aero Engines AG. The information contained herein is pro
Slide 11: Profit & Loss
Appendix Profit & Loss (m€) 3M 2017 3M 2018 Change Revenues 971.9 1,016.4 5% Total Cost of Sales -786.2 -801.5 Gross Profit 185.7 214.9 16% Gross Profit Margin 19.1% 21.1% R&D according to IFRS -9.8 -13.3 SG&A -43.0 -48.2 Other operating income (expense) 0.4 0.6 P&L of companies accounted "at equity
Slide 12: Reconciliation to Adjusted Key Performance Indicators
Appendix Reconciliation to Adjusted Key Performance Indicators (m€) 3M 2017 3M 2018 Change EBIT reported 145.1 162.2 12% Adjustment (PPA Depreciation & Amortization) 5.3 5.2 Adjustment (IAE Upshare) 7.5 7.7 EBIT adj. 157.9 175.1 11% Thereof P&L of companies accounted "at equity" 11.7 7.9 -32% Intere
Slide 13: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (m€) 3M 2017 3M 2018 Change Revenues Group 971.9 1,016.4 5% OEM Commercial 303.9 335.9 11% OEM Military 101.0 91.3 -10% MRO 588.4 618.2 5% Consolidation -21.4 -29.0 EBIT adj. Group 157.9 175.1 11% OEM (Commercial / Military) 105.3 123.4 17% MRO 52.1 51.5 -1% C
Slide 14: Research & Development
Appendix Research & Development (m€) 3M 2017 3M 2018 Change Total R&D 56.1 53.1 -5% Customer funded R&D -11.2 -5.8 48% Company expensed R&D 44.9 47.3 5% Capitalization of R&D -29.8 -25.4 Amortisation (COGS) 2.7 4.7 on EBIT Total R&D impact P&L 17.8 26.6 49% Sales Reversals -0.1 -1.8 COGS -5.2 -6.8 A
Slide 15: Financial Result
Appendix Financial Result (m€) 3M 2017 3M 2018 Change Interest Income 1.0 1.0 0% Interest Expense -3.3 -2.3 30% Interest Result -2.3 -1.3 43% Financial Result on other items -7.0 -9.3 thereof interests for pension obligations -3.1 -3.4 thereof fair value gains/losses on derivatives 0.2 -1.1 Financia
Slide 16: MTU's Cash Development January – March 2018
Appendix MTU’s Cash Development January – March 2018 -28.4 Free Cashflow: +83.3 -102.8 183.0 -0.1 3.2 0.0 -106.0 -2.6 -3.1 106.1 Adjusted Non-operating 77.7 exceptional items: +3.1 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash Operating Investi
Slide 17: Cash Flow
Appendix Cash Flow (m€) 3M 2017 3M 2018 Change Net Income IFRS 105.0 106.2 1% Depreciation and amortization 46.2 47.0 Change in provisions 45.8 20.8 Change in Working Capital -47.6 -8.2 Taxes 7.0 17.4 Interest, derivatives, others -24.0 -0.2 Cash Flow from operating activities 132.4 183.0 38% Net In
Slide 18: Net Financial Debt at 748 m€
Appendix Net Financial Debt at 748 m€ (m€) 31/12/2017 31/03/2018 Change Bonds and notes 100.0 101.3 Convertible bond 478.5 479.3 Financial liabilities to bank 108.2 30.0 thereof Revolving Credit Facility 78.1 0.0 thereof Note Purchase Agreement 30.1 30.0 Loans from related companies 0.0 2.7 Finance
Slide 19: Working Capital
Appendix Working Capital (m€) 31/12/2017 31/03/2018 Change Change in % Gross inventories 840.8 883.4 42.6 Prepayments -390.7 -388.8 1.9 Receivables 1,394.6 1,461.1 66.5 Payables -761.2 -864.0 -102.8 Working Capital 1,083.5 1,091.7 8.2 1% 03 May 2018 Q1 2018 Results - Investor Relations 19 © MTU Aero
Slide 20: Balance Sheet
Appendix Balance Sheet (m€) 31/12/2017 31/03/2018 Change Intangible Assets 1,079.0 1,087.9 Property, Plant, Equipment 695.3 700.7 other Non-current assets 1,773.8 1,779.6 Total Non-Current assets 3,548.1 3,568.2 1% Current assets 2,456.0 2,540.1 3% Total assets 6,004.1 6,108.3 2% Equity 1,870.1 1,98
Slide 21: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) (m€) 3M 2017 3M 2018 Total depreciation / amortization OEM 36.1 38.9 MRO 10.1 8.1 MTU total 46.2 47.0 PPA depreciation / amortization & IAE Upshare amortization (EBIT adjustments) PPA OEM 4.7 4.6 PPA MRO 0.6 0.6 IAE Upshare OEM 7.5 7.7 MTU total 12.8
Slide 22: 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
Slide 23: Proprietary Notice
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