Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q3 2021 Earnings Presentation
21 slides from Mtu Aero Engines's earnings presentation, Oct 29, 2021
Slide 1: Q3 2021 Results
Q3 2021 Results Conference Call with Investors and Analysts 10/29/2021 – Investor Relations
Slide 2: Q3 2021 Review
Q3 2021 Review Passenger traffic with volatile recovery, cargo traffic remains strong IATA expects 2021 passenger traffic to reach 40% of 2019 pre-Covid levels MRO recovery strongly accelerated in late Q3 Spirit Airlines selected the GTF for its latest A320neo order First of 60 A220 for Ai
Slide 3: Financial Highlights Q3 2021
Financial Highlights Q3 2021 Revenues EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€) (in m€) 2,957 +2% 3,008 311 -1% 307 (10.5%) (10.2%) +0% 219 220 205 +41% 145 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 October 29, 2021 Q3 2021 Results - Investor Relation
Slide 4: OEM Segment
OEM Segment (in m €) 9M 2020 9M 2021 Change Revenues 1,146 1,075 -6% Military Business 296 310 4% Commercial Business 850 765 -10% EBIT adj. 194 202 4% EBIT adj. margin % 16.9% 18.8% • US$ Commercial revenues down by 4% • Military revenues up 4% • EBIT margin up due to business mix October 29, 2021
Slide 5: Commercial MRO
Commercial MRO (in m €) 9M 2020 9M 2021 Change Revenues 1,866 2,010 8% EBIT adj. 116 105 -9% EBIT adj. margin % 6.2% 5.2% • US$ Revenues up by 15% • EBIT margin down due to business mix (higher PW1100G MRO share) October 29, 2021 Q3 2021 Results - Investor Relations 5 © MTU Aero Engines AG. The info
Slide 6: Guidance 2021
Guidance 2021 Organic revenue Military Commercial OE Total Group Sales: Up mid single digit Up low to mid single digit 4.3 – 4.4 bn € EBIT adj. (margin) ~ 10.5% Net Income adj. In line with EBIT adj. Commercial Spares Commercial MRO Up low to mid single digit MRO up mid teens % CCR High double digit
Slide 7: Appendix
Appendix © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 8: Group Order Book up 11%
Appendix Group Order Book up 11% 20.7 bn€ +11% 18.6 bn€ Order book 2020/12/31 Order book 2021/09/30 October 29, 2021 Q3 2021 Results - Investor Relations 8 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 9: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of October 29th, 2021 in m$ 1,160 1,060 860 360 2021 2022 2023 2024 Average hedge rate (€/US$) 1.18 1.17 1.18 1.20 October 29, 2021 Q3 2021 Results - Investor Relations 9 © MTU Aero Engines AG. The information contained herein is proprietary
Slide 10: Profit & Loss
Appendix Profit & Loss (in m €) Q3 2020 Q3 2021 Change 9M 2020 9M 2021 Change Revenues 908 1,004 11% 2,957 3,008 2% Total cost of sales -805 -830 -2,539 -2,543 Gross profit 103 174 69% 418 464 11% Gross profit margin % 11.4% 17.4% 14.1% 15.4% R&D according to IFRS -16 -22 -41 -60 SG&A -56 -53 -174 -
Slide 11: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) Q3 2020 Q3 2021 Change 9M 2020 9M 2021 Change EBIT reported 41 120 192% 240 288 20% Adjustment (PPA Depreciation & Amortization) 5 5 16 16 Adjustment (IAE Upshare) 6 6 21 17 Adjustment (Vericor sale) 0 -13 0 -13 Adjustment (Rest
Slide 12: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (in m €) Q3 2020 Q3 2021 Change 9M 2020 9M 2021 Change Revenues Group 908 1,004 11% 2,957 3,008 2% OEM Commercial 220 251 14% 850 765 -10% OEM Military 113 123 9% 296 310 4% MRO 594 658 11% 1,866 2,010 8% Consolidation -19 -27 -56 -77 EBIT adjusted Group 87 11
Slide 13: Research & Development
Appendix Research & Development (in m €) Q3 2020 Q3 2021 Change 9M 2020 9M 2021 Change Total R&D 41 60 45% 139 162 16% Customer funded R&D -7 -19 -189% -21 -46 -120% Company expensed R&D 35 41 17% 119 116 -2% Capitalization of R&D -17 -11 -50 -34 Amortisation 6 6 17 18 Total R&D impact P&L (on EBIT)
Slide 14: Financial Result
Appendix Financial Result (in m €) Q3 2020 Q3 2021 Change 9M 2020 9M 2021 Change Interest income 0 0 27% 2 1 -48% Interest expense -8 -8 5% -15 -24 -54% Interest result -8 -7 6% -14 -23 -68% Financial result on other items -17 -5 -33 -12 US$ / non cash valuations / others -15 -3 -26 -7 Interest for
Slide 15: MTU's Cash development January – September 2021
Appendix MTU’s Cash development January – September 2021 -54 Free Cashflow: +205 -169 -30 26 369 9 -256 2 -5 773 719 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 Financ
Slide 16: Cash Flow
Appendix Cash Flow (in m €) 9M 2020 9M 2021 Change Net Income IFRS 141 190 35% Depreciation and amortization 203 203 Change in provisions and liabilities -91 -70 Change in working capital 63 19 Taxes -9 -4 Interest, derivatives, others -6 30 Cash Flow from operating activities 302 369 22% Net Invest
Slide 17: Net debt
Appendix Net debt (in m €) 31.12.2020 30.09.2021 Change Bonds and notes 603 599 Convertible bonds 538 530 Promissory note 100 0 Financial liabilities to bank 30 0 thereof Revolving Credit Facility 0 0 thereof bonds and notes 30 0 Financial lease liabilities 177 176 Loans from related companies and t
Slide 18: Working capital
Appendix Working capital (in m €) 31.12.2020 30.09.2021 Change Inventories 1,279 1,315 Prepayments -457 -401 Receivables 1,949 2,026 Payables -1,236 -1,425 Working Capital 1,535 1,515 -1% October 29, 2021 Q3 2021 Results - Investor Relations 18 © MTU Aero Engines AG. The information contained herein
Slide 19: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2020 30.09.2021 Change Intangible assets 1,135 1,156 Property, plant, equipment 1,161 1,168 other non-current assets 1,733 1,670 Total non-current assets 4,030 3,993 -1% Current assets 4,074 4,078 0% Total assets 8,104 8,070 0% Equity 2,635 2,727 4% Non-current
Slide 20: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization (in m €) Q3 2020 Q3 2021 Change 9M 2020 9M 2021 Change OEM 47 51 142 149 MRO 19 18 62 54 Total depreciation / amortization* 67 69 3% 203 203 0% PPA OEM 5 5 14 14 PPA MRO 1 1 2 2 IAE Upshare OEM 6 6 21 17 PPA depreciation / amortization & IAE Upshare amortizat
Slide 21: 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