Facc Ag · VIE:FACC
Facc — Q1 2020 Earnings Presentation
25 slides from Facc's earnings presentation, May 12, 2020
Slide 1: Investor presentation // Q1 2020
Investor presentation // Q1 2020 May 12, 2020
Slide 2: FACC Business Highlights
FACC BUSINESS HIGHLIGHTS CEO Robert Machtlinger
Slide 3: Q1 2020 – Business Snapshot
Q1 2020 – BUSINESS SNAPSHOT Results in line with PRE COVID-19 plans > Revenues: EUR 193.7 mill. > EBIT: EUR 13.1 mill. > Equity Ratio: 40% > Net Debt: EUR 223 mill. > Cost Reduction program leads to positive EBITs in all segments. • Interior get well plan on track • Vertical Integration milestones a
Slide 4: 50 Mill. Fixed Cost Reduction Plan
50 MILL. FIXED COST REDUCTION PLAN Status: program is progressing and delivers cost savings as planned SAVINGS AS LOCATED IN THREE TARGET AREAS ARE PROGRESSING € 25 Vertical Integration Projects on track MATERIAL AND - Metal part marching ongoing PROCUREMENT COST mill. - Business Jet production set
Slide 5: Aerospace Market
AEROSPACE MARKET CEO Robert Machtlinger
Slide 6: The Overall Aerospace Market
THE OVERALL AEROSPACE MARKET Aerospace has proven to be very resilient during past crises > Today, the Aerospace market is one of the most hit industries as a result from the COVID-19 pandemic. > Shortterm demand forecasts (3 month) are in place. > The midterm development is pending on a national ha
Slide 7: Daily Flights Down Almost 80%
DAILY FLIGHTS DOWN ALMOST 80% With the global spread of COVID-19, the airline industry is almost grounded
Slide 8: H2 2020 Restart Leaving RPKs Down 33% YoY
H2 2020 RESTART LEAVING RPKS DOWN 33% YOY Domestic markets assumed to open in Q3, international markets much slower
Slide 9: COVID-19 / Airplane Demand Snapshot
COVID-19 / AIRPLANE DEMAND SNAPSHOT FACC assumption - industry might need 2 to 3 years to recover Annual Fuel Savings on newer airplanes drops with Travelling influence on specific airplane programs lower fuel price, this can impact A/C demand too > We are expecting a 30% demand adjustment for the s
Slide 10: COVID-19 / FACC Snapshot
COVID-19 / FACC SNAPSHOT FACC Mitigations, Top Level Summary and 2020 Business Simulations FACC Task Force Short-Work Time 40 % Reduction to balance health & agreement in place in Q2/2020 product safety with financial with entire FACC staff demand compared stability with Q1/2020 output 15 mil EUR Co
Slide 11: 2020 Key Priorities
2020 KEY PRIORITIES > Retain the ability to continue operations in a safe environment and fully support customer needs > Preserve liquidity > Match short term demand with production and cost structure; execute EUR 15 mill CORONA cost savings program > Stick to long term cost structure improvements >
Slide 12: Financials
FINANCIALS ALES STAREK
Slide 13: FACC Group
FACC GROUP Revenues EBIT in million in million EUR EUR 13,1 205,6 193,7 -8,3 Q1 2019 Q1 2020 Q1 2019 EBIT Q1 2020 EBIT Revenues Revenues Revenues from product deliveries almost constant Negative one-off effect due to A380 aircraft Reduction mostly due to revenues from development cancellation
Slide 14: Aerostructures
AEROSTRUCTURES Program phase out drags on revenues Revenue EBIT in million in million EUR 84,2 EUR 6,2 69,1 -1,7 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Revenues Revenues Revenues Revenues Program phase outs of Airbus A380 and Boeing B737 Negative one-off effect due to A380 aircraft cannot be compensate
Slide 15: Engines & Nacelles
ENGINES & NACELLES Revenues from product deliveries almost stable Revenue EBIT and EBIT-Margin in million in million EUR EUR 47,4 3,1 46,3 0,2 Q1 2019 Q1 2020 Q1 2019 EBIT Q1 2020 EBIT Revenues Revenues Engines & Nacelles segment almost constant development Negative one-off effect due to A380 ai
Slide 16: Cabin Interiors
CABIN INTERIORS Efficiency and learning improvements drive higher contribution Revenue EBIT and EBIT-Margin in million in million EUR EUR 3,8 78,3 74,0 -6,8 Q1 2019 Q1 2020 Q1 2019 EBIT Q1 2020 EBIT Revenues Revenues Demand from A32F and ARJ21 drives revenues Negative one-off effect due to A380
Slide 17: Free Cashflow
FREE CASHFLOW Higher inventories and trade receivables drag on free cashflow Free cashflow – Q1 2019 Free cashflow – Q1 2020 in EUR mill. in EUR mill. 9,1 22,2 -17,0 7,3 0,0 -13,3 13,1 16,0 7,7 -5,3 1,7 -7,0 -7,0 -8,3 EBIT Q1 2019 Depreciation EBITDA Q1 Changes in Investments Others FCF Q1 2019 EBIT
Slide 18: Financial Status as of March 31, 2020
FINANCIAL STATUS AS OF MARCH 31, 2020 Net Debt/EBITDA covenant had been changed from 3.5 to 4.0 effective 31.08.2019 All covenants in line as of 31.08.2019 and 31.12.2019 Next testing (semi-annual): 30.06.2020 Senior Debt and Cash (Key Elements) Committed Syndicated Loan Facilities 31.12.2019
Slide 19: Corona Crisis
CORONA CRISIS OEKB emergency funding facility provides additional liquidity safety net Repayment obligations of FACC in 2020 Unused Syndicated Loan facilities Repayment of EUR 110mn in funding instruments in 2020 EUR 150mn as of 31st March 2020 90mln Bond (June 2020) Rest in leasing and bank l
Slide 20: Outlook
OUTLOOK CEO Robert Machtlinger CFO Ales Starek
Slide 21: Size of Global Recession
SIZE OF GLOBAL RECESSION Economics are updating GDP forecasts regularly
Slide 22: Post COVID-19 RPKs to Come in Stages
POST COVID 19 RPKS TO COME IN STAGES Domestic markets might open in Q3, international travel slower to open
Slide 23: Implies Halving of Global RPKs in 2020
IMPLIES HALVING OF GLOBAL RPKS IN 2020 Lower yields means a $ 314 billion or 55% fall in passenger revenues
Slide 24: 2020 - Full Year Outlook
2020 - FULL YEAR OUTLOOK The further course of the COVID-19 crisis cannot currently be assessed today. Due to global COVID-19 restrictions and a lack of the overall industry visibility, a serious or reliable outlook for the 2020 financial year is currently not possible. Effects and forecasts r
Slide 25: Disclaimer
DISCLAIMER > This document contains forward-looking statements. Words such as ‘outlook’, 'believe', 'intend', 'anticipate', 'plan', 'expect', ‘objective’, ‘goal’, ‘estimate’, ‘may’, ‘will’ and similar expressions often identify these forward-looking statements. > Forward-looking statements are subje