MTU Aero Engines AG · XETR:MTX
MTU Aero Engines — 9M 2009 Earnings Presentation
25 slides from MTU Aero Engines's earnings presentation, Oct 26, 2009
Slide 1: 9M 2009 Results - MTU Aero Engines
9M 2009 Results - MTU Aero Engines Conference Call with Investors and Analysts October 26, 2009
Slide 2: Contents
Contents 1. Operational & Financial Highlights 2. Divisional Performance 3. Group Key Figures 4. Appendix 26 October 2009 Investor Relations 2
Slide 3: 9M 2009 Key Business Topics
9M 2008 Key Business Topics • Global market conditions are improving as IATA figures show: Market - International passenger traffic fell by 1.1% yoy in August environment - Cargo traffic dropped by 9.6% yoy in August • IATA forecasts passenger traffic to decline by - 4%, cargo traffic by -14% yoy in
Slide 4: 9M 2009 Financial Highlights
9M 2009 Financial Highlights Order Backlog • Group order backlog almost stable at € 4,068.2m • Group revenues almost stable at € 1,954.9m Revenues • US$ underlying decrease by 10% EBIT adj. • Group EBIT reached € 210.8m or 10.8% margin Cash Flow • Free cash flow at € 95.7m Net Income/ • Net income r
Slide 5: Contents
Contents 1. Operational & Financial Highlights 2. Divisional Performance 3. Group Key Figures 4. Appendix 26 October 2009 Investor Relations 5
Slide 6: OEM Segment
OEM Segment 30.09.2009 31.12.2008 Change Order backlog in m€ 3,922.3 3,884.5 1% Order backlog • Commercial Business order book Commercial Business in m$ 3,564.4 3,363.6 6% increased by 6% Military Business in m€ 1,488.1 1,467.6 1% in m€ 9M 2009 9M 2008 Change Revenues 1,157.6 1,196.3 -3% Revenues •
Slide 7: MRO Segment
MRO Segment in m US$ 30.09.2009 01.01.2009 Change Contract volume MRO in mUS$ 6,731.6 7,278.3 -8% Contract Volume • Decreased by 8% as a result of contract Order backlog in mUS$ 213.6 182.9 17% execution in m€ 9M 2009 9M 2008 Change Revenues 821.2 807.9 2% Revenues • Stable in €, decrease by 9% in U
Slide 8: Contents
Contents 1. Operational & Financial Highlights 2. Divisional Performance 3. Group Key Figures 4. Appendix 26 October 2009 Investor Relations 8
Slide 9: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of October 26, 2009 (% of net exposure) m US$ 700 (=85%) 460 (=55%) 240 (=29%) 2009 2010 2011 1.42 1.42 1.39 Average hedge rate (US$/EUR) 26 October 2009 Investor Relations 9
Slide 10: Financial Result
Financial Result in m€ 9M 2009 9M 2008 Change Profit/loss from at equity accounted -0.5 0.0 companies Interest Result -9.8 -8.8 11% Interest income 0.8 5.0 Interest payments -10.6 -13.8 Other Financial Result -21.2 -17.4 22% Gains/losses out of US$ cash/financing/ -11.8 5.1 capital lease valuations
Slide 11: EBIT adj., Net Income and EPS
EBIT adj., Net Income and EPS in m€ 9M 2009 9M 2008 Change EBIT adj. 210.8 238.9 -12% EBIT adj. margin 10.8% 12.0% PPA depreciation -34.3 -36.2 EBIT reported 176.5 202.7 -13% Financial result -31.5 -26.2 EBT 145.0 176.5 -18% Income taxes -51.6 -57.9 Net income reported 93.4 118.6 -21% EPS in € 1.91
Slide 12: Cash Flow
Cash Flow in m€ 9M 2009 9M 2008 Change Cash Flow from operating activities 179.8 242.5 -26% Cash Flow from investing activities -84.1 -118.0 -29% Free Cash Flow 95.7 124.5 -23% Cash Flow from financing activities -55.8 -109.2 -49% Effect of exchange rate on cash and cash -4.0 1.4 equivalents Change
Slide 13: Net Financial Debt
Net Financial Debt in m€ 30.09.2009 31.12.2008 Change Change in % Convertible bond (incl. interests) 146.9 145.4 Revolving Credit Facility 0.0 61.2 Promissory notes (Schuldscheindarlehen) 65.9 Other Bank credits 17.8 21.3 Financial liabilities to related companies 1.6 Finance lease liabilities 29.6
Slide 14: New Guidance 2009
New Guidance 2009 OLD NEW in m€ FY 2008 Guidance 2009 Guidance 2009 Revenues 2,724.3 ~ 2,800 ~ 2,600 EBIT adj. 331.0 ~ 280 ~ 290 EBIT adj. margin 12.1% ~ 10% ~ 11% Free Cash Flow 123.6 80 - 100 ~ 100 Net income reported 179.7 ~ 140 ~ 140 26 October 2009 Investor Relations 14
Slide 15: Contents
Contents 1. Operational & Financial Highlights 2. Divisional Performance 3. Group Key Figures 4. Appendix 26 October 2009 Investor Relations 15
Slide 16: Profit & Loss
Appendix Profit & Loss in m€ Q3 2009 Q3 2008 Change 9M 2009 9M 2008 Change Revenues 578.9 726.8 -20% 1,954.9 1,982.9 -1% Total cost of sales -469.4 -606.3 -23% -1,628.7 -1,642.5 -1% Gross profit 109.5 120.5 -9% 326.2 340.4 -4% Gross profit margin 18.9% 16.6% 16.7% 17.2% R & D company funded -23.9 -2
Slide 17: Revenues / Cost of Sales / Gross Profit
Appendix Revenues / Cost of Sales / Gross Profit in m€ Q3 2009 Q3 2008 Change 9M 2009 9M 2008 Change Revenues 578.9 726.8 -20% 1,954.9 1,982.9 -1% OEM Commercial 220.7 310.5 -29% 790.9 841.4 -6% OEM Military 134.8 127.7 6% 366.7 354.9 3% MRO 232.2 294.9 -21% 821.2 807.9 2% Consolidation -8.8 -6.3 -2
Slide 18: EBIT reported / adjusted
Appendix EBIT reported / adjusted in m€ Q3 2009 Q3 2008 Change 9M 2009 9M 2008 Change EBIT reported 62.3 70.3 -11% 176.5 202.7 -13% OEM 49.6 57.2 -13% 127.5 175.9 -28% MRO 14.5 13.4 8% 52.0 28.9 80% Consolidation -1.8 -0.3 -3.0 -2.1 EBIT adjusted 73.7 82.1 -10% 210.8 238.9 -12% OEM 59.8 67.8 -12% 15
Slide 19: Research & Development
Appendix Research & Development in m€ Q3 2009 Q3 2008 Change 9M 2009 9M 2008 Change Company expensed R&D 26.9 24.0 12% 80.0 59.9 34% OEM 23.9 22.4 70.2 55.4 MRO 3.0 1.6 9.8 4.5 Capitalisation of R&D -3.0 -1.1 -8.5 -2.4 OEM -1.9 -0.8 -5.4 -0.8 MRO -1.1 -0.3 -3.1 -1.6 R&D according to IFRS 23.9 22.9 4
Slide 20: EBITDA reported / adjusted
Appendix EBITDA reported / adjusted in m€ Q3 2009 Q3 2008 Change 9M 2009 9M 2008 Change EBITDA reported 92.5 101.3 -9% 268.0 295.8 -9% OEM (commercial / military) 72.9 80.9 -10% 197.0 247.7 -20% MRO 21.4 20.7 3% 74.0 50.2 47% Consolidation -1.8 -0.3 -3.0 -2.1 EBITDA adjusted 90.6 100.5 -10% 262.6 29
Slide 21: Financial Result
Appendix Financial Result in m€ Q3 2009 Q3 2008 Change 9M 2009 9M 2008 Change Profit / Loss from at equity -0.4 -0.1 -0.5 0.0 accounted companies Interest Result -3.6 -3.7 -- -9.8 -8.8 11% Interest Income 0.4 0.7 0.8 5.0 Interest Payments -4.0 -4.4 -10.6 -13.8 Other Financial Result -6.9 -10.5 -- -2
Slide 22: Cash Flow
Appendix Cash Flow in m€ Q3 2009 Q3 2008 Change 9M 2009 9M 2008 Change Net income IFRS 37.7 38.2 -1% 93.4 118.6 -21% Depreciation and amortization 30.2 31.0 91.5 93.1 Change in Provisions *) 14.3 -12.5 -9.4 -20.2 Change in Working Capital -17.6 40.9 14.8 27.8 Taxes -0.1 -7.5 6.3 9.3 Interest, deriva
Slide 23: Working Capital
Appendix Working Capital in m€ 30.09.2009 31.12.2008 Change Change in % Gross inventories 646.7 661.4 14.7 Prepayments -565.7 -520.6 45.1 Receivables 590.0 642.2 52.2 Payables -504.3 -601.5 -97.2 Working Capital 166.7 181.5 14.8 8% 26 October 2009 Investor Relations 23
Slide 24: PPA Depreciation / Amortisation (in m€)
Appendix PPA Depreciation / Amortisation (in m€) Total depreciation / amortisation Q3 2009 Q3 2008 9M 2009 9M 2008 MTU total 30.2 31.0 91.5 93.1 OEM 23.3 23.7 69.5 71.8 MRO 6.9 7.3 22.0 21.3 PPA depreciation / amortisation Q3 2009 Q3 2008 9M 2009 9M 2008 MTU total 11.4 11.8 34.3 36.2 OEM 10.2 10.6 3
Slide 25: 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