Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q2 2015 Earnings Presentation
26 slides from Mtu Aero Engines's earnings presentation, Jul 23, 2015
Slide 1: Q2 2015 Results - MTU Aero Engines
Q2 2015 Results- MTU Aero Engines Conference Call with Investors and Analysts 23 July 2015
Slide 2: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 23 July 2015 Investor Relations 2
Slide 3: Business Highlights Q2 2015
Business Highlights Q2 2015 • IATA passenger traffic up 6.3% ytd. in May 2015 • Airline profitability strengthens further • Successful Paris Airshow with order intake of 800 m€ • GTF MRO network agreement signed • Ramp up for GTF successfully initiated • Positive US$ rate development with increased
Slide 4: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 23 July 2015 Investor Relations 4
Slide 5: Financial Highlights 6M 2015
Financial Highlights 6M 2015 Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 9,4% 9,7% 2.500 250 10% +21% 2.000 2.202 200 +25% 8% 213 1.500 1.816 150 171 6% 1.000 100 4% 500 50 2% 0 0 0% 6M 2014 6M 2015 6M 2014 6M 2015 Net Income adj. / EPS adj. (m€ / €) Free Cash Flow (m€) 180 2,88 3,00 100 160
Slide 6: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of July 23, 2015 (% of net exposure) (mUS$) 958 (=90%) 621 (=58%) 430 (=36%) 110 (=8%) 2015 2016 2017 2018 Average hedge rate (US$/€): 1.26 1.28 1.24 1.16 23 July 2015 Investor Relations 6
Slide 7: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 23 July 2015 Investor Relations 7
Slide 8: Commercial OEM Business
Commercial OEM Business • Over 7,000 GTF engines on firm order or optioned • PurePower engines have completed 19,000 hours of testing • PW307 for Dassault Falcon 8X achieved its certification in May • First development modules for GE9X in production • Improvement initiatives for IAE V2500 FHA Agreem
Slide 9: OEM Segment
OEM Segment Order book 31/12/2014 30/06/2015 Change Order book (m€) 6,763.6 7,015.7 4% Commercial Business (mUS$) 7,450.0 7,179.2 -4% Military Business (m€) 627.4 599.4 -4% (m€) 6M 2014 6M 2015 Change Revenues 1,258.4 1,467.1 17% Commercial Business 1,032.9 1,251.8 21% Military Business 225.5 215.3
Slide 10: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 23 July 2015 Investor Relations 10
Slide 11: Commercial MRO Business
Commercial MRO Business • Sales campaigns won at a value of 1,100 m US$ in H1 15 • GTF network agreement signed • GTF MRO readiness at MTU Hannover expected for 2016 • GEnx TCF MRO capability established 23 July 2015 Investor Relations 11
Slide 12: Commercial MRO Business
Commercial MRO Business (mUS$) 31/12/2014 30/06/2015 Change Contract volume 5,357.8 5,040.3 -6% (m€) 6M 2014 6M 2015 Revenues 572.9 754.2 32% EBIT adj. 48.0 73.5 53% EBIT adj. Margin % 8.4% 9.7% • Contract volume down by 6% • Organic revenues up by 7% • Favourable US$ fx rate support EBIT margin 23
Slide 13: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 23 July 2015 Investor Relations 13
Slide 14: Guidance 2015 update
Guidance 2015 update Impact on EBIT adj. Guidance Improvement of long term profitability of Flight-hour-agreements V2500 → Short term less V2500 shop visits from IAE for MRO division → Short term less consumption of V2500 spare parts in OEM segment Reduced Military Sales expectation Changed FX rate
Slide 15: Guidance 2015 update
Guidance 2015 update in m€ FY 2014 Guidance 2015 Guidance 2015 @FY2014 @H12015 Revenues 3,914 ~ 4,400 ~ 4,600 EBIT adj. 383 ~ 420 ~ 430 9.8% Net income adj. 253 ~ 285 ~ 295 • Guidance 2015 based on 1,10 US$/€ • Commercial US$ OE sales up high single digit • Commercial US$ spare parts sales up low to
Slide 16: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 23 July 2015 Investor Relations 16
Slide 17: Net Income adj.
Appendix Net Income adj. (m€) Q2 2014 Q2 2015 Change 6M 2014 6M 2015 Change Revenues 902.8 1,102.5 22% 1,815.8 2,202.0 21% EBIT adj. 81.7 115.1 41% 170.7 212.8 25% Thereof P&L of companies accounted "at equity" 3.7 3.6 -3% 7.6 13.1 72% Interest Result -2.2 -0.2 91% -4.7 -1.0 79% Interests for pensio
Slide 18: Profit & Loss
Appendix Profit & Loss (m€) Q2 2014 Q2 2015 Change 6M 2014 6M 2015 Change Revenues 902.8 1,102.5 22% 1,815.8 2,202.0 21% Total Cost of Sales -782.8 -956.7 -1,565.7 -1,930.7 Gross Profit 120.0 145.8 22% 250.1 271.3 8% Gross Profit Margin 13.3% 13.2% 13.8% 12.3% R&D company funded -16.7 -8.7 -38.4 -24
Slide 19: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (m€) Q2 2014 Q2 2015 Change 6M 2014 6M 2015 Change Revenues Group 902.8 1,102.5 22% 1,815.8 2,202.0 21% OEM Commercial 532.4 616.3 16% 1,032.9 1,251.8 21% OEM Military 108.9 124.1 14% 225.5 215.3 -5% MRO 269.3 370.3 38% 572.9 754.2 32% Consolidation -7.8 -8.2
Slide 20: Research & Development
Appendix Research & Development (m€) Q2 2014 Q2 2015 Change 6M 2014 6M 2015 Change Company expensed R&D 26.4 35.8 36% 60.0 79.1 32% OEM 25.2 34.4 57.9 76.7 MRO 1.2 1.4 2.1 2.4 Capitalization of R&D -9.7 -27.1 -21.6 -54.8 OEM -9.7 -27.1 -21.6 -54.8 MRO 0.0 0.0 0.0 0.0 R&D according to IFRS 16.7 8.7 -
Slide 21: MTU's Cash development January – June 2015
Appendix MTU’s Cash development January – June 2015 7,2 Free Cashflow: +86,7 170,5 -115,1 29,6 -51,5 -16,7 18,4 3,3 -31,3 71,8 64,6 Adjusted Non-operating exceptional items: +31,3 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash Operating Investin
Slide 22: Cash Flow
Appendix Cash Flow (m€) 6M 2014 6M 2015 Change Net Income IFRS 83.9 104.0 24% Depreciation and amortization 76.3 78.1 Change in provisions * -3.9 6.3 Change in Working Capital -0.3 -29.4 Taxes -68.9 -17.4 Interest, derivatives, others -6.1 28.9 Cash Flow from operating activities 81.0 170.5 110% Cas
Slide 23: Net financial debt at 855.3 m€
Appendix Net financial debt at 855.3 m€ (m€) 31/12/2014 6M 2015 Change Corporate bonds 352.7 347.4 Financial liabilities arising from IAE V2500 414.6 436.9 Financial liabilities to bank 39.7 91.6 Promissory notes 0.0 0.0 RCF 9.6 61.5 Note Purchase Agreement 30.1 30.1 Liabilities to related companies
Slide 24: Working Capital
Appendix Working Capital (m€) 31/12/2014 30/06/2015 Change Change in % Gross inventories 741.0 793.0 52.0 Prepayments -485.7 -416.1 69.6 Receivables 1,004.2 996.0 -8.2 Payables -790.4 -874.4 -84.0 Working Capital 469.1 498.5 29.4 6% 23 July 2015 Investor Relations 24
Slide 25: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) (in m€) Q2 2014 Q2 2015 6M 2014 6M 2015 Total depreciation / amortization OEM 30.7 32.8 61.5 65.0 MRO 7.7 8.1 14.8 16.1 MTU total 38.4 40.9 76.3 81.1 PPA depreciation / amortization PPA OEM 5.6 5.4 11.2 10.9 PPA MRO 0.7 0.6 1.3 1.2 IAE Upshare OEM 5.5
Slide 26: Cautionary Note Regarding Forward-Looking Statements
Appendix 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 th