MTU Aero Engines AG · XETR:MTX
MTU Aero Engines — FY2012 Earnings Presentation
28 slides from MTU Aero Engines's earnings presentation, Feb 19, 2013
Slide 1: Preliminary FY 2012 Results
Preliminary FY 2012 Results MTU Aero Engines Conference Call with Investors and Analysts February 19, 2013
Slide 2: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 19 February 2013 Preliminary FY 2012 Results - Investor Relations 2
Slide 3: Guidance 2012 Exceeded
Guidance 2012 Exceeded in m€ FY 2012 Guidance 2012 Revenues 3,378.6 3,300 EBIT adj. 374.3 370.0 Net income adj. 233.4 225.0 Free Cash Flow 85.7 high double digit 19 February 2013 Preliminary FY 2012 Results - Investor Relations 3
Slide 4: Business Highlights
Business Highlights • Contract volume at very high level of € 11.5 bn • Ongoing market success for the GTF platforms Global Passenger Traffic Market Environment 30% • Global Passenger traffic up by 4.2% (y-o-y) in 500 December (5.3% ytd) 20% 400 • Growth was led by Middle-East (12.6%), Latin 10% Ame
Slide 5: Commercial OEM Business
Commercial OEM Business Excellent 2012 for the Geared Turbofan Engine Programs: • Nearly 3,000 GTF engines on order incl. options • Embraer selected the GTF as exclusive power plant for their 2nd generation of E-Jets • More than 4,200 hours of full engine testing for the GTF family completed • V2500
Slide 6: Commercial MRO Business / Military Business
Commercial MRO Business •MTU Zhuhai increased MRO capacity by 50% •Successful implementation of SAP ERP system at MTU Berlin •Contract wins of US$ 1.9 bn •MRO revenues FY12 up 8% •US$ 440 m MRO CFM56-7 contract signed with GOL Military Business • Ramp up of TP400-D6 series production • Export order
Slide 7: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 19 February 2013 Preliminary FY 2012 Results - Investor Relations 7
Slide 8: Financial Highlights
Financial Highlights Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 4.000 400 11,2% +14% 11,1% +15% 3.000 3.379 10% 300 374 2.932 330 2.000 200 05% 1.000 100 0 0 00% FY 2011 FY 2012 FY 2011 FY 2012 Net Income adj. / EPS adj. (m€ / €)* Free Cash Flow (m€) 150 6,00 240 +18% 4,60 -34% 4,05 4,50 12
Slide 9: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 19 February 2013 Preliminary FY 2012 Results - Investor Relations 9
Slide 10: OEM Segment
OEM Segment Order book 31/12/2011 31/12/2012 Change Order book (m€) 4,776.6 5,640.4 18% Commercial Business (mUS$) 4,849.7 6,218.3 28% Military Business (m€) 1,028.5 927.4 -10% (m€) FY 2011 FY 2012 Change Revenues 1,846.6 2,106.4 14% Commercial Business 1,401.1 1,603.1 14% Military Business 445.5 50
Slide 11: OEM Segment
OEM Segment (m€) FY 2011 FY 2012 Change Revenues 1,846.6 2,106.4 14% Gross Profit 389.4 368.6 -5% Gross Profit Margin % 21.1% 17.5% R&D according to IFRS (P&L) 126.6 108.5 -14% EBIT adj. 238.9 264.7 11% EBIT adj. Margin % 12.9% 12.6% • Gross profit margin impacted by one-offs and business mix effect
Slide 12: Commercial MRO Business
Commercial MRO Business (mUS$) 31/12/2011 31/12/2012 Change Contract volume (incl. order book) 7,453.5 7,704.2 3% (m€) FY 2011 FY 2012 Revenues 1,116.6 1,305.7 17% Gross Profit 153.7 176.1 15% Gross Profit Margin % 13.8% 13.5% EBIT adj. 93.7 112.1 20% EBIT adj. Margin % 8.4% 8.6% • Contract volume i
Slide 13: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 19 February 2013 Preliminary FY 2012 Results - Investor Relations 13
Slide 14: P&L Highlights
P&L Highlights (m€) FY 2011 FY 2012 Change Revenues 2,932.1 3,378.6 15% EBIT adj. 329.6 374.3 14% Interest Result -12.7 -3.8 Interests for pension provisions -23.6 -24.2 Financial Result * -36.3 -28.0 23% EBT adj. * 293.3 346.3 18% Tax (tax rate 32,6% ) -95.6 -112.9 Net Income adj. * 197.7 233.4 18%
Slide 15: Free Cash Flow
Free Cash Flow Cash Flow (m€) Comments Cash Flow from operating activities • Decreased by € 58.1m to € 229.8m (FY11: € 287.9 250 m) 230 - 144 Cash Flow from investing activities at € 144.1m 200 (FY11: € 158.9m) • Investment in PPE at € 99.1m (FY11: € 113.7m) • Investment in intangible assets at € 44
Slide 16: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of February 19, 2013 (% of net exposure) (mUS$) 825 (=78%) 615 (=54%) 350 (=30%) 90 (=7%) 2013 2014 2015 2016 1.31 1.30 1.26 1.20 Average hedge rate (US$/EUR) 19 February 2013 Preliminary FY 2012 Results - Investor Relations 16
Slide 17: Net debt of € 391.3 m
Net debt of € 391.3 m Dec. 31, 2011 Dec 31, 2012 (m€) 650 619 Financial assets 600 16 Derivative financial assets 550 Short-term financial 500 securities 450 300 Cash and cash Net debt equivalents 400 Net debt € 391 m Financial liabilities 350 € 12 m Derivative financial 300 262 liabilities 250 228
Slide 18: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 19 February 2013 Preliminary FY 2012 Results - Investor Relations 18
Slide 19: Guidance 2013
Guidance 2013 in m€ FY 2012 Guidance 2013 Revenues 3,378.6 + 10% - 12% EBIT adj. 374.3 + 10% - 12% EBIT adj. Margin 11.1% Net income adj. 233.4 + 10% - 12% • New engines sales up 20% - 25% (organically up mid teens) • Spare parts up mid teens (organically up high single digit) • Commercial MRO up hi
Slide 20: Agenda
Agenda • Business Highlights • Financial Highlights • Segment Reporting • Group Key Figures • Guidance • Appendix 19 February 2013 Preliminary FY 2012 Results - Investor Relations 20
Slide 21: Profit & Loss
Appendix Profit & Loss (m€) Q4 2011 Q4 2012 Change FY 2011 FY 2012 Change Revenues 864.8 910.6 5% 2,932.1 3,378.6 15% Total Cost of Sales -721.8 -790.7 -2,384.2 -2,823.3 Gross Profit 143.0 119.9 -16% 547.9 555.3 1% Gross Profit Margin 16.5% 13.2% 18.7% 16.4% R&D company funded -35.1 -33.6 -131.6 -11
Slide 22: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. in m€ Q4 2011 Q4 2012 Change FY 2011 FY 2012 Change Revenues Group 864.8 910.6 5% 2,932.1 3,378.6 15% OEM Commercial 431.1 461.2 7% 1,401.1 1,603.1 14% OEM Military 124.2 154.9 25% 445.5 503.3 13% MRO 317.9 303.9 -4% 1,116.6 1,305.7 17% Consolidation -8.4 -9.4
Slide 23: Research & Development
Appendix Research & Development (m€) Q4 2011 Q4 2012 Change FY 2011 FY 2012 Change Company expensed R&D 49.8 47.4 -5% 165.8 160.7 -3% OEM 47.8 45.3 157.4 155.4 MRO 2.0 2.1 8.4 5.3 Capitalization of R&D -14.7 -13.8 -34.2 -47.7 OEM -13.8 -13.6 -30.8 -46.9 MRO -0.9 -0.2 -3.4 -0.8 R&D according to IFRS
Slide 24: Cash Flow
Appendix Cash Flow (m€) FY 2011 FY 2012 Change Net Income IFRS 159.2 173.9 9% Depreciation and amortization 135.4 203.8 Change in provisions * 3.1 -46.8 Change in Working Capital 37.4 -119.0 Taxes -61.0 10.9 Interest, derivatives, others 13.8 7.0 Cash Flow from operating activities 287.9 229.8 -20%
Slide 25: Working Capital
Appendix Working Capital (m€) 31/12/2011 31/12/2012 Change Change in % Gross inventories 823.8 808.8 -15.0 Prepayments -715.0 -604.0 111.0 Receivables 781.0 789.9 8.9 Payables -786.9 -797.7 -10.8 Working Capital 102.9 197.0 94.1 91% 19 February 2013 Preliminary FY 2012 Results - Investor Relations 2
Slide 26: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) Total depreciation / amortization Q4 2011 Q4 2012 FY 2011 FY 2012 MTU total 37.9 97.5 135.4 203.8 OEM 30.1 88.3 105.4 171.8 MRO 7.8 9.2 30.0 32.0 PPA depreciation / amortization Q4 2011 Q4 2012 FY 2011 FY 2012 MTU total 10.6 44.0 42.4 72.5 OEM 9.7 43.
Slide 27: Guidance for PPA and IAE Upshare Amortization (in m€)
Appendix Guidance for PPA and IAE Upshare Amortization (in m€) in m€ 2011 2012 2013 2014 2015 2016 PPA depreciation / amortization 42.4 72.5 37.3 24.5 22.7 22.1 IAE Upshare ./. 11.2 23.0 23.0 23.0 23.0 Adjustments 42.4 83.7 60.3 47.5 45.7 45.1 19 February 2013 Preliminary FY 2012 Results - Investor
Slide 28: 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