Figeac Aero Sa · EURONEXT:FGA
Figeac Aero Sa — FY2023/24 Earnings Presentation
37 slides from Figeac Aero Sa's earnings presentation, Jun 24, 2024
Slide 1: The leading partner for major aerospace manufacturers
Download our presentation by scanning the QR code The leading partner for major aerospace manufacturers Full-year results 2023/24 June 2024 1 GROUPE
Slide 2: Flight plan
Flight plan GROUP PROFILE 1. HIGHLIGHTS 2. FINANCIAL PERFORMANCE 3. MARKET DYNAMICS 4. PILOT 28 ADVANCES 5. OUTLOOK
Slide 3: Highlights
Sommaire 01 Highlights
Slide 4: Strategic & financial highlights
01 Strategic & financial highlights All 3 annual targets achieved or surpassed for 3rd consecutive year PILOT 28 advances €397.2m €52.2m €24.1m Progress revenue current EBITDA Free Cash Flow on all fronts (+19.3% org. growth) (13.2% margin, +140bp) (vs €5.4m) (vs guid. €375-390m) (vs revised guid. €
Slide 5: Business development & operational highlights
01 Business development & operational highlights Backlog Customer satisfaction Recruitment Supply chain ▪ Improvements in OTD ▪ Persisting tensions but better adaptation €3.9bn1 ▪ Stable performance in terms 750 ▪ Aluminium mostly good Backlog of quality Gross hires ▪ Titanium under control with inv
Slide 6: Financial performance
Sommaire 02 Financial performance
Slide 7: P&L – Key points
02 P&L – Key points IFRS, €m (audit in the final stages) FY 23/24 FY 22/23 Chg. Org. chg. +19.3% organic revenue Revenue 397.2 341.6 +16.3% +19.3% growth EBITDA margin up 140bp Current EBITDA 52.2 40.3 +29.6% Current operating income & Current EBITDA margin 13.2% 11.8% +140bp operating income
Slide 8: Full-year revenue objective surpassed
02 Full-year revenue objective surpassed OTHER CLIENTS 14% Evolution of revenue (€m) ROLLS ROYCE 2% AIRBUS COLLINS 2% ATLANTIC 30% +16.0% 16.3% +19.3% org. +19.3% org. EMBRAER 5% Part revenue1 SPIRIT 10% by client +19.4% AIRBUS 14% SAFRAN 23% OTHER PROGRAMMES 26% A320 24% Part revenue1 A330 4% by pr
Slide 9: Profitability target achieved
02 Profitability target achieved Current EBITDA €52.2m, +29.6% Current EBITDA over the financial year (€m) Current EBITDA margin 13.2%, +140bp 14.1% Strong contribution from H2, as expected: 13.2% €32.3m, 15% margin 11.8% €52.2m current EBITDA, at upper end of guidance range (€50-53m) Further
Slide 10: WCR update
02 WCR update WCR and DIO over the financial year (in number of days of revenue) 51-day reduction in WCR ▪ DIO -35 days 321 ▪ DSO -15 days ▪ DPO -7 days 242 236 210 Very good performance towards 175 FY2027/28 DIO target returning to pre- 161 crisis levels (140 days) 145 132 95 82 FY19/20 FY20/21
Slide 11: Cash generation target surpassed
02 Cash generation target surpassed IFRS, €m (audit in the final stages) FY 23/24 FY 22/23 Chg. Cash-flow1 42.1 22.8 +84.8% Change in WCR 28.1 8.3 Cash-flow +84.8% Cash-flow from operating activities 70.2 31.1 +125.7% Very positive impact from WCR due to Cash-flow from investing activities (46.1
Slide 12: Financial situation
02 Financial situation Net debt stabilized & leverage reduced Cash Net debt Fixed rate debt Average cost Next debt milestones: €88.7m €288,4m1 ~ 79% 5.2%1 ▪ Positive net FCFs from FY2023/24 onwards ▪ Focus on potential refinancing when leverage at or below 3 around FY2025/26e Debt amortization s
Slide 13: Market dynamics
Sommaire 03 Market dynamics
Slide 14: Commercial aerospace in 2024: still going strong, despite Boeing uncertainties
03 Commercial aerospace in 2024: still going strong, despite Boeing uncertainties 2023 2024 YTD3 Outlook RPK1, yoy chge +36.9% +15.5%2 c. 3.7% per annum Passenger traffic RPK1, % of 2019 level 94.1% > 100%2 over next 20 years Available capacity ASK1, yoy chge +31.0% +13.5%2 Load factor Average (yoy
Slide 15: A350 widebody upswing: an important growth reserve
03 A350 widebody upswing : an important growth reserve for FIGEAC AÉRO 2023 2024 YTD Net orders Deliveries Backlog Net orders Deliveries Backlog A350-900 148 52 400 20 13 407 A350-1000 118 12 171 47 4 214 A350F 15 50 5 55 Total 281 64 621 72 17 676 Rate objective increased from 10 / mo in 2026 to 12
Slide 16: Update on the Boeing 737 MAX
03 Update on the Boeing 737 MAX Burned $444m in Q1, but received $425m cash advance from Boeing Talks of takeover by Boeing confirmed, expected by end of year Airbus likely to acquire sites in Belfast (A220 wings and mid-fuselage section) and Kinston, NC (A350 central section) → No discernible
Slide 17: PILOT advances
Sommaire 04 PILOT 28 advances
Slide 18: PILOT 28: a new strategic horizon on March 2028
04 PILOT 28: a new strategic horizon on March 2028 P I L O T Performance Optimisation of financial Transformation Innovation Lower impact of sales performance of model New business Set of new extra- FCF generation €80 – 100m financial objectives c. €50m unveiled in 2024/25 Profitable growth with rev
Slide 19: PILOT 28: Performance on the commercial front
04 Performance on the commercial front PILOT 28 Commercial aerospace Defence Industrialisation services ▪ Significant wins already secured in ▪ New business gained in the non-aero ▪ Major new advances in structural single-aisle defence segment with KNDS turnkey solution agreement in APAC New busines
Slide 20: PILOT 28: Lower impact
04 Lower impact PILOT 28 Environmental certification 70% in 2025 100% Environment Employees Society (as a % of total workforce) ▪ ISO 14001 certification of all sites by ▪ Attraction / retention: ▪ Suppliers: update of supplier code of FY2027/28 ▪ Regular employee satisfaction surveys conduct & admi
Slide 21: PILOT 28: Optimization of financial performance
04 Optimization of financial performance PILOT 28 Contract margin Industrial setup Efficiency Limited optimization optimization initiatives CAPEX DIO ▪ 2/3 of inflation covered ▪ Transfers of work to best ▪ WCR reduced to 82d ▪ Net CAPEX €46.1m, ▪ Ongoing discussions to cost sites (from 132 in FY202
Slide 22: Outlook
Sommaire 05 Outlook
Slide 23: Short-term & medium-term guidance
05 Short-term & medium-term guidance FY24/25e FY27/28e 1 REVENUE €420-440m €550-600m >16% 2 CURRENT EBITDA €67-73m of revenue 3 FREE CASH FLOWS €20-28m ~€50m 4 LEVERAGE ~4 2-2.5 Full-year results 2023/24 | June 2024 31 GROUPE
Slide 24: Investment case
05 Investment case SIGNIFICANT UPSIDE POTENTIAL STRONG EXECUTION ATTRACTIVE & TRACK RECORD ▪ Stock rerating with lower EXPOSURE indebtedness TO AEROSPACE ▪ Delivered for 3rd consecutive year ▪ Positive impacts from lower inflation, ▪ On track for 2025 pre-COVID recovery interest rate and supply chai
Slide 25: Q&A
Sommaire Q&A
Slide 26: Appendices
Sommaire Appendices
Slide 27: Consolidated P&L
Consolidated P&L IFRS, €m (audit in the final stages) FY 23/24 FY22/23 Chg. Revenue 397.2 341.6 +16.3% Other finished products and WIP 2.2 14.7 (85.2)% Cost of bought-in goods and services and external expenses (250.5) (224.9) +11.3% Personnel expenses (93.6) (88.6) +5.7% Taxes and duties (4.1) (3.7
Slide 28: Consolidated balance sheet (simplified)
Consolidated balance sheet (simplified) IFRS, €m (audit in the final stages) 31/03/24 30/09/23 31/03/23 Fixed assets 269.6 265.3 265.9 Other non-current assets 18.5 8.3 5.5 Inventory 190.6 202.8 196.2 Contract assets 37.2 28.2 24.4 Trade receivables 49.6 35.8 59.9 Current tax assets 7.1 7.5 7.9 Othe
Slide 29: Consolidated cash flow statement (simplified)
Consolidated cash flow statement (simplified) IFRS, €m (audit in the final stages) FY 23/24 FY 22/23 Net profit (12.2) (18.1) Depreciation, amortization and provisions 47.0 45.7 Other non-cash adjustments (7.1) (13.9) Tax expense 1.3 0.9 Cost of debt 13.2 8.1 Cash-flow before cost of debt and taxes
Slide 30: Financial debt structure
Financial debt structure Debt Amount Type1 Rate State-guaranteed loan (PGE) 130.5 A Fixed Bonds 78.6 B Fixed Bonds 16.5 B Variable Bank debt 55.9 A Fixed Bank debt 53.0 A Variable Leases 19.8 A Fixed Others 11.3 A Factoring 11.5 ns Variable ~80% 79% Gross debt2 377,2 amort. fixed Average cost 5.2%2
Slide 31: PILOT 28's trajectory: consolidation and development of the Group's leadership
PILOT 28’s trajectory: consolidation and development of the Group’s leadership Revenue trend over the course of the plan (€m) ~€170m Build rates 550 - 600 €80-€100m New business ~€30m Commercial / Defence / Services Adjustments Attrition, price, lags in build rate increase 342 2023-2028 CAGR > 10% F
Slide 32: PILOT 28's trajectory: mechanic impact of production rates
PILOT 28’s trajectory : mechanic impact of the production rate of the main aerospace programmes Revenue impact of the production rate increases over the course of the plan (€m) ~170 ~20 ~20 ~55 ~75 An increase in revenue largely secured by the Group’s order backlog Note: figures presented here inclu
Slide 33: PILOT 28's trajectory: acceleration of deleveraging (1/2)
PILOT 28’s trajectory: acceleration of deleveraging (1/2) FCF trend over the course of the plan (€m) 6-8% of revenue Lower CAPEX WCR ~50 Optimisation initiatives / client financing / sub- contracting >16% EBITDA Increased activity / efficiency initiatives EBITDA to FCF conversion > 50% 5.4 FY 2027/2
Slide 34: PILOT 28's trajectory: acceleration of deleveraging (2/2)
PILOT 28’s trajectory: acceleration of deleveraging (2/2) Financial leverage trend over the course of the plan (net debt / EBITDAc) Higher EBITDA 7.0 Lower net debt Net FCF > 0 since FY2023/24 2.0 – 2.5 ~4 in FY 2024/25 ~3 in FY 2025/26 FY2027/28: a deleveraged financial structure with a low leverag
Slide 35: Our strategic positions on the main aircraft programmes
Our strategic positions on the main aircraft programmes A320 A350 B737 Global 7500 AEROSTRUCTURES AEROENGINES AEROSTRUCTURES AEROENGINES AEROSTRUCTURES AEROENGINES AEROSTRUCTURES AEROENGINES LEAP-1A TRENT XWB LEAP-1B PASSPORT 20 BUILD RATES BUILD RATES BUILD RATES BUILD RATES Shipset value1: Shipset
Slide 36: Glossary
Glossary Term / indicator Definition OEM (Original Equipment Aircraft manufacturers, engine manufacturers and other airframers Manufacturer) Build-to-Print The manufacture of parts and sub-assemblies by a sub-contractor based on plans and specifications provided by the client OTD (On-Time Deli
Slide 37: Address and investor contact
Address Zone industrielle de l’Aiguille 46100 FIGEAC FRANCE Investor and analyst contact Simon Derbanne VP Investor Relations +33 (0)5 81 24 63 91 simon.derbanne@figeac-aero.com