Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — H1 2021 Earnings Presentation
21 slides from Mtu Aero Engines's earnings presentation, Jul 30, 2021
Slide 1: First half year results 2021
First half year results 2021 Conference Call with Investors and Analysts 7/30/2021
Slide 2: Review H1 2021
Review H1 2021 • Passenger traffic shows first signs of recovery • 2021 global passenger traffic expected to reach 52% of 2019 pre-COVID levels • 1,000 GTF powered aircraft in customer hands • 500th GTF ”Neo” engine assembled at MTU Munich • Ground breaking ceremony for new parts repair shop in Serb
Slide 3: Financial Highlights H1 2021
Financial Highlights H1 2021 Revenues EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€) (in m€) 2,049 -2% 2,004 224 (10.9%) -15% 190 (9.5%) 187 161 -16% +49% 135 125 6M 2020 6M 2021 6M 2020 6M 2021 6M 2020 6M 2021 6M 2020 6M 2021 Q2 2021 Results - July 30, 2021 Investor Relations
Slide 4: OEM Segment
OEM Segment (in m €) 6M 2020 6M 2021 Change Revenues 814 701 -14% Military Business 183 187 2% Commercial Business 631 515 -18% EBIT adj. 128 113 -12% EBIT adj. margin % 15.7% 16.0% • US$ Commercial revenues down by 14% • Military revenues up 2% • EBIT margin stable Q2 2021 Results - July 30, 2021 I
Slide 5: Commercial MRO
Commercial MRO (in m €) 6M 2020 6M 2021 Change Revenues 1,272 1,352 6% EBIT adj. 96 77 -20% EBIT adj. margin % 7.6% 5.7% • US$ Revenues up by 14% • EBIT margin down due to business mix (higher PW1100G MRO share vs. lower Independent volume) Q2 2021 Results - July 30, 2021 Investor Relations 5 © MTU
Slide 6: Guidance 2021
Guidance 2021 Organic revenue Military Commercial OE Total Group Sales: Up mid to high single digit Up low to mid single digit 4.3 – 4.5 bn € EBIT adj. (margin) ~10 – 10.5% Net Income adj. In line with EBIT adj. Commercial Spares Commercial MRO Up low to mid single digit MRO up ~15 to 20% CCR Mid to
Slide 7: Appendix
Appendix Q2 2021 Results - July 30, 2021 Investor Relations 7 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 8: Group Order Book up 10%
Appendix Group Order Book up 10% 20.5 bn€ 18.6 bn€ +10% Order book 2020/12/31 Order book 2021/06/30 Q2 2021 Results - July 30, 2021 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 July 30th, 2021 in m$ 1,120 940 680 180 2021 2022 2023 2024 Average hedge rate (€/US$) 1.18 1.17 1.18 1.20 Q2 2021 Results - July 30, 2021 Investor Relations 9 © MTU Aero Engines AG. The information contained herein is proprietary to the
Slide 10: Profit & Loss
Appendix Profit & Loss (in m €) Q2 2020 Q2 2021 Change 6M 2020 6M 2021 Change Revenues 776 1,015 31% 2,049 2,004 -2% Total cost of sales -699 -860 -1,734 -1,714 Gross profit 77 155 101% 315 290 -8% Gross profit margin % 10.0% 15.3% 15.4% 14.5% R&D according to IFRS -9 -21 -24 -37 SG&A -59 -53 -118 -
Slide 11: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) Q2 2020 Q2 2021 Change 6M 2020 6M 2021 Change EBIT reported 30 93 209% 199 168 -16% Adjustment (PPA Depreciation & Amortization) 5 5 10 10 Adjustment (IAE Upshare) 7 6 15 11 EBIT adjusted 42 103 144% 224 190 -15% thereof P&L of
Slide 12: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (in m €) Q2 2020 Q2 2021 Change 6M 2020 6M 2021 Change Revenues Group 776 1,015 31% 2,049 2,004 -2% OEM Commercial 231 265 14% 631 515 -18% OEM Military 86 100 17% 183 187 2% MRO 477 674 41% 1,272 1,352 6% Consolidation -18 -24 -37 -50 EBIT adjusted Group 42 1
Slide 13: Research & Development
Appendix Research & Development (in m €) Q2 2020 Q2 2021 Change 6M 2020 6M 2021 Change Total R&D 39 55 43% 98 102 4% Customer funded R&D -5 -16 -257% -14 -27 -88% Company expensed R&D 34 39 14% 84 75 -10% Capitalization of R&D -9 -12 -33 -23 Amortisation 6 6 11 12 Total R&D impact P&L (on EBIT) 31 3
Slide 14: Financial Result
Appendix Financial Result (in m €) Q2 2020 Q2 2021 Change 6M 2020 6M 2021 Change Interest income 1 0 -62% 2 1 -60% Interest expense -4 -8 -123% -8 -16 -115% Interest result -3 -8 -181% -6 -15 -164% Financial result on other items -13 -2 -16 -7 US$ / non cash valuations / others -11 0 -11 -4 Interest
Slide 15: MTU's Cash development January – June 2021
Appendix MTU’s Cash development January – June 2021 -78 Free Cashflow: +187 -123 26 1 283 0 -236 -1 -27 773 695 Adjusted Non-operating exceptional items: +27 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Financing
Slide 16: Cash Flow
Appendix Cash Flow (in m €) 6M 2020 6M 2021 Change Net Income IFRS 125 103 -18% Depreciation and amortization 137 134 Change in provisions and liabilities -52 -42 Change in working capital 28 78 Taxes 11 -14 Interest, derivatives, others -20 24 Cash Flow from operating activities 229 283 24% Net Inv
Slide 17: Net debt
Appendix Net debt (in m €) 31.12.2020 30.06.2021 Change Bonds and notes 603 594 Convertible bonds 538 532 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 177 165 Loans from related companies and t
Slide 18: Working capital
Appendix Working capital (in m €) 31.12.2020 30.06.2021 Change Inventories 1,279 1,280 Prepayments -457 -443 Receivables 1,949 2,066 Payables -1,236 -1,446 Working Capital 1,535 1,457 -5% Q2 2021 Results - July 30, 2021 Investor Relations 18 © MTU Aero Engines AG. The information contained herein is
Slide 19: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2020 30.06.2021 Change Intangible assets 1,135 1,154 Property, plant, equipment 1,161 1,146 other non-current assets 1,733 1,618 Total non-current assets 4,030 3,918 -3% Current assets 4,074 4,112 1% IFRS 5 - Disposal groups of assets 0 68 n.a. Total assets 8,10
Slide 20: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization (in m €) Q2 2020 Q2 2021 Change 6M 2020 6M 2021 Change OEM 48 50 94 98 MRO 23 18 42 36 Total depreciation / amortization* 71 68 -5% 136 134 -2% PPA OEM 5 5 9 9 PPA MRO 1 1 1 1 IAE Upshare OEM 7 6 15 11 PPA depreciation / amortization & IAE Upshare amortizatio
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