Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q1 2024 Earnings Presentation
25 slides from Mtu Aero Engines's earnings presentation, Apr 30, 2024
Slide 1: Q1 2024 Results
Q1 2024 Results Conference Call with Investors and Analysts 30 April 2024
Slide 2: Review Q1 2024: Airline industry full recovery
Review Q1 2024 AIRLINE INDUSTRY ACHIEVED FULL RECOVERY IN TOTAL PASSENGER TRAFFIC IN FEBRUARY 2024 I In February 2024 airline industry achieved full recovery in total passenger traffic, surpassing the 2019 threshold by 5.7% I Domestic passenger traffic up 13.7% over 2019 levels I International traff
Slide 3: Review Q1 2024: Aftermarket demand, supply chain
Review Q1 2024 AFTERMARKET DEMAND IN LINE WITH EXPECTATIONS, SUPPLY CHAIN SLOWS EXECUTION High MRO demand driven by I Strong Passenger traffic I Delivery of new aircraft significantly behind market demand I Increase in utilization of existing equipment Supply chain challenged in satisfying market de
Slide 4: Review Q1 2024: Update on GTF
Review Q1 2024 UPDATE ON GTF I FAA published the expected AD for GTF powder metal issue in March 2024 I Current status of GTF fleet management plan in line with expectations I Majority of powder metal parts inspection occurs during scheduled regular SVs – only 600-700 incremental SVs I MTU TAT curre
Slide 5: Review Q1 2024: Capacity expansion, geothermal, promissory note
Review Q1 2024 CAPACITY EXPANSION ONGOING GEOTHERMAL PROJECT SUCCESSFUL I MTU Zhuhai – 2nd test cell and construction of MTU Zhuhai II I Total investment cost amortized within 7 years I Test capabilities at MTU Maintenance Dallas follow move to larger I Covers 80% of our heating needs at our Munich
Slide 6: Financial Highlights 3M 2024
Financial Highlights 3M 2024 Revenues adj. EBIT adj. Net income adj. Free Cash Flow adj. (in m€) (in m€) (in m€) (in m€) 1,675 +8% 1,544 212 218 (13.7%) +3% (13.0%) 157 +0% 158 93 -83% 16 3M 2023 3M 2024 3M 2023 3M 2024 3M 2023 3M 2024 3M 2023 3M 2024 Q1 2024 Results - Investor Relations 6 30 April
Slide 7: OEM Segment
OEM Segment (in m €) 3M 2023 3M 2024 Change Revenues* 549 557 2% Military Business 103 124 21% Commercial Business* 446 433 -3% EBIT adj. 141 130 -8% EBIT adj. margin % 25.8% 23.4% • Organic US$ Commercial revenues up ~9% • Military revenues up 21% mainly driven by catch up effects and NEFE • EBIT m
Slide 8: Commercial MRO
Commercial MRO (in m €) 3M 2023 3M 2024 Change Revenues 1,021 1,141 12% EBIT adj. 70 88 26% EBIT adj. margin % 6.8% 7.7% • Organic US$ Revenues up14% • EBIT margin up due to business mix 8 30 April 2024 Q1 2024 Results - Investor Relations
Slide 9: Guidance 2024 - Confirmed
Guidance 2024 - Confirmed ORGANIC REVENUE Military Commercial OE Total Group Sales EBIT adj. margin ~ up low to mid teens % ~ up low to mid twenties % EUR 7.3 – 7.5 bn € > 12% Net Income adj. FCF Growth in line with EBIT adj. Low triple digit million € Commercial Commercial MRO Spares ~ up mid to hi
Slide 10: Appendix
Appendix 10 30 April 2024 Q1 2024 Results - Investor Relations
Slide 11: Group Order Book up 4%
Appendix Group Order Book up 4% 24.4 bn€ 4% 25.4 bn€ Order book 2023/12/31 Order book 2024/03/31 11 30 April 2024 Q1 2024 Results - Investor Relations
Slide 12: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of April 15, 2024 in m$ 1,480 1,100 520 60 2024 2025 2026 2027 Average hedge rate (€/US$) 1.13 1.11 1.10 1.13 12 30 April 2024 Q1 2024 Results - Investor Relations
Slide 13: Profit & Loss
Appendix Profit & Loss (in m €) 3M 2023 3M 2024 Change Revenues 1,544 1,650 7% Revenues adjusted* 1,544 1,675 8% Total cost of sales -1,271 -1,390 Gross profit 273 260 -5% R&D according to IFRS -26 -26 SG&A -56 -52 Other operating income (expense) -11 -9 P&L of companies accounted at equity and equi
Slide 14: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) 3M 2023 3M 2024 Change EBIT reported 202 188 -7% Adjustment (PPA Depreciation & Amortization) 5 5 Adjustment (IAE Upshare) 5 6 Adjustment (PW1100G Powder Metal FX) 0 19 EBIT adjusted 212 218 3% thereof P&L of companies accounted
Slide 15: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) 3M 2023 3M 2024 Change Revenues 1,544 1,650 7% Adjustment (PW1100G Powder Metal FX) 0 19 Adjustment (IAE Upshare) 0 6 Revenues adjusted 1,544 1,675 8% 15 30 April 2024 Q1 2024 Results - Investor Relations
Slide 16: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (in m €) 3M 2023 3M 2024 Change Revenues Group* 1,544 1,675 8% OEM Commercial* 446 433 -3% OEM Military 103 124 21% MRO 1,021 1,141 12% Consolidation -25 -24 EBIT adjusted Group 212 218 3% OEM (Commercial / Military) 141 130 -8% MRO 70 88 26% Consolidation 1 0
Slide 17: Research & Development
Appendix Research & Development (in m €) 3M 2023 3M 2024 Change Total R&D 67 80 19% Customer funded R&D -21 -24 -19% Company expensed R&D 47 56 19% Capitalization of R&D -13 -21 Amortisation 7 8 Total R&D impact P&L (on EBIT) 41 43 3% thereof booked into sales and COGS 16 16 thereof booked into R&D
Slide 18: Financial Result
Appendix Financial Result (in m €) 3M 2023 3M 2024 Change Interest income 6 8 39% Interest expense -6 -10 -72% Interest result 0 -2 <-300% Financial result on other items -11 -10 US$ / non cash valuations / others -5 -4 Interest for pension provisions -7 -6 Financial result -11 -12 -7% 18 30 April 2
Slide 19: MTU's Cash development January – March 2024
Appendix MTU’s Cash development January – March 2024 -29 Free Cashflow: +16 -83 0 -18 0 117 -67 4 18 883 854 Adjusted Non-operating exceptional items: -18 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Financing pay
Slide 20: Cash Flow
Appendix Cash Flow (in m €) 3M 2023 3M 2024 Change Net Income IFRS 134 126 -6% Depreciation and amortization 76 87 Change in provisions and liabilities 47 49 Change in working capital -120 -161 Taxes 46 4 Interest, derivatives, others -12 12 Cash Flow from operating activities 171 117 -32% Net Inves
Slide 21: Net debt
Appendix Net debt (in m €) 31.12.2023 31.03.2024 Change Bonds and notes 607 612 Convertible bonds 489 490 Financial liabilities to bank 7 54 Revolving Credit Facility 0 0 Financial lease liabilities 170 171 Loans from related companies and third parties 0 1 Other financing liabilities (financing com
Slide 22: Working capital
Appendix Working capital (in m €) 31.12.2023 31.03.2024 Change Inventories 1,629 1,663 Prepayments -347 -381 Receivables 3,000 3,186 Payables -2,373 -2,399 Working Capital 1,908 2,069 8% 22 30 April 2024 Q1 2024 Results - Investor Relations
Slide 23: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2023 31.03.2024 Change Intangible assets 1,200 1,202 Property, plant, equipment 1,501 1,531 other non-current assets 1,904 1,854 Total non-current assets 4,604 4,586 0% Current assets 5,599 5,785 3% Total assets 10,204 10,371 2% Equity 2,933 3,043 4% Non-current
Slide 24: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization (in m €) 3M 2023 3M 2024 Change OEM 51 54 MRO 26 32 Total depreciation / amortization* 76 87 14% PPA OEM 5 5 PPA MRO 0 0 IAE Upshare OEM 6 6 PPA depreciation / amortization & IAE Upshare amortization (EBIT adjustments) 10 11 5% OEM 40 44 MRO 26 32 Depreciatio
Slide 25: Proprietary Notice, Cautionary note regarding forward-looking statements
Proprietary Notice This document contains proprietary information of the MTU Aero Engines AG group companies. The document and its contents shall not be copied or disclosed to any third party or used for any purpose other than that for which it is provided, without the prior written agreement of MTU