Montana Aerospace Ag · SIX:AERO
Montana Aerospace — FY2021 Earnings Presentation
34 slides from Montana Aerospace's earnings presentation, Apr 4, 2022
Slide 1: Montana Aerospace AG FY 2021 Earnings Presentation
Montana Aerospace AG 04 April 2022 FY 2021 Earnings Presentation
Slide 2: Disclaimer
DISCLAIMER THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNL
Slide 3: FY 2021 Earnings Call Presenters
FY 2021 Earnings Call Presenters Marc Vesely recte Riha Head of M&A and Investor Relations -3- Montana Aerospace
Slide 4: Result 2021
MONTANA AEROSPACE RESULT 2021 ‘ — o ) a“ _™~ A
Slide 5: Sales, cash and net debt highlights
>EUR 500M CASH SALES +24,9% NET DEBT <1,5x EBITDA ADJ. EBITDA +25,2% OVERPROPORTIONAL GROWTH EQUITY RATIO 50,5% (+200% YOY) MARKET SHARE GAINS RAMP-UP AFTER COVID-19 INDUSTRIALIZATION
Slide 6: Diversified know-how driving our revenue growth
DIVERSIFIED KNOW-HOW DRIVING OUR REVENUE GROWTH in EURm +37,3% +7,7% 383,0 264,6 285,0 278,9 +37,3% 122,5 89,2 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 - 6-
Slide 7: Proceeds from IPO to support M&A pipeline and organic growth
PROCEEDS FROM IPO TO SUPPORT THE EXECUTION OF IDENTIFIED M&A PIPELINE AND ORGANIC GROWTH PROJECTS Use of Proceeds Initiatives Status Expansion of capacities and ramp-up of new capabilities (e.g. ✓ Titanium, Composite) Organic Projects Capacity expansion and efficiency on track improvements (e.g. 3rd
Slide 8: Capex programs on track and ready for ramp-up
CAPEX PROGRAMS ON TRACK AND READY FOR RAMP-UP SITE FLOOR SPACE CAPEX UTILIZATION 2022 FULL UTILIZATION ON TRACK CONTRACT BASIS Baia Mare, RO 80,000 m² >EUR 150m ~25% ~2024 ✓ ✓ Da Nang, VN 40,000 m² <EUR 100m ~25% ~2024 ✓ ✓✓ 3rd Heavy Press (3rd HP) 11,000 m2 >EUR 35m <5% ~2024/25 ✓ ✓ Cast House & Re
Slide 9: Global footprint strengthened by selected investments and M&A
GLOBAL FOOTPRINT STRENGTHENED BY SELECTED INVESTMENTS AND M&A - 9-
Slide 10: Proceeds from IPO to support the execution of identified M&A pipeline
PROCEEDS FROM IPO TO SUPPORT THE EXECUTION OF IDENTIFIED M&A PIPELINE Use of Proceeds Initiatives Status Expansion of capacities and ramp-up of new capabilities (e.g. ✓ Titanium, Composite) Organic Projects Capacity expansion and efficiency on track improvements (e.g. 3rd Heavy Press) Strategic acqu
Slide 11: Montana Aerospace follows its stringent M&A plan
MONTANA AEROSPACE FOLLOWS ITS STRINGENT M&A PLAN – EXECUTING AND DELIVERING, AS PROMISED DURING THE IPO PHASE 2021 Deal Pipeline – 5 M&A transactions already executed within 9 months Closing (e): April 2021 August 2021 November 2021 Q2 2022 • Montana • Signing of • Montana Aerospace acquisition of A
Slide 12: Financials
FINANCIALS - 12 - Montana Aerospace
Slide 13: Fast recovery, financials approaching pre-Covid level
MONTANA AEROSPACE – FAST RECOVERY, FINANCIALS APPROACHING PRE-COVID LEVEL in EURm FY 2020 FY 2021 yoy change Net Sales 632,4 790,1 +24,9% ✓ Adj. EBITDA 44,8 56,1 +25,2% ✓ CAPEX spent* 133,3 121,4 -8,9% ✓ Net Debt 424,9 81,8 -343,1 ✓ Equity Ratio 17,0% 50,5% +197,1% ✓ (*) Acquisition of intangible as
Slide 14: Sales and adj. EBITDA reflecting finalization of capex projects
SALES AND ADJ. EBITDA REFLECTING FINALIZATION OF CAPEX PROJECTS Net Sales Adjusted EBITDA(1) Net income in EURm in EURm in EURm +25% +25% -15% 767,5 790,1 56,1 614,2 632,4 44,8 -49,1 FY Updated FY Updated FY 2020 FY 2021 -57,7 2020 FY 2020 2021 FY 2021 FY 2020 FY 2021 ▪ Strong sales recovery, suppor
Slide 15: Segment reporting part of regular reporting
SEGMENT REPORTING PART OF REGULAR REPORTING OF MONTANA AEROSPACE Starting in the Annual Report 2021 we start reporting detailed segment results - 15 - Montana Aerospace
Slide 16: Net sales & adj. EBITDA by segment – FY 2021
NET SALES & ADJ. EBITDA BY SEGMENT – FY 2021 NET SALES in EURm FY 2020 FY 2021 YoY change Aerospace 264,6 285,0 +7,7% (41,8% of total sales) (36,1% of total sales) E-Mobility 89,2 122,5 +37,3% (14,1% of total sales) (15,5% of total sales) Energy 278,9 383,0 +37,3% (44,1% of total sales) (48,5% of to
Slide 17: Positive development of key KPIs
POSITIVE DEVELOPMENT OF KEY KPIs Production Performance Personnel expenses Other operating expenses in EURm in EURm in EURm ▲ in finished & unfinished goods Net Sales +11% +9% +30% 174,0 102,4 157,0 93,7 811,9 21,8 623,0 -9,4 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 ▪ Output strong as deliver
Slide 18: Solid financial basis for future growth
SOLID FINANCIAL BASIS FOR FUTURE GROWTH Net Debt Equity Ratio Number of Employees in EURm in % in absolute figures, EOY +34% +16% -87% 639,9 51% 5.554 4.788 17% 81,8 FY 2020 FY 2021 FY 2021 FY 2021 2020 2021 ▪ Cash proceeds from IPO of EUR ▪ IPO and capital increase ▪ Increase reflects ramp-up relat
Slide 19: Solid financial basis for future growth
SOLID FINANCIAL BASIS FOR FUTURE GROWTH Trade Working Capital Cash vs. Debt 2021 Balance Sheet Structure in EURm in EURm in EURm +66% 263,7 590,8 1.792,4 1.792,4 509,1 -81,8 159,1 245,4 Equity 904,9 853,8 Non-Current Assets Inventories 184,5 Trade Receivables 87,5 129,1 Current Debt 887,5 938,5 Trad
Slide 20: Solid financial basis for future growth
SOLID FINANCIAL BASIS FOR FUTURE GROWTH Operating Cashflow CAPEX Financing Cashflow in EURm in EURm in EURm +532,5 -37,1 +11,9 9,3 521,8 -121,4 -27,8 -133,3 -10,7 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 ▪ Operating cash flow in 2021 lower, ▪ Investments in line with strategy, ▪ IPO + capital
Slide 21: Acquisition of ASCO
ACQUISITION OF ASCO - 21 - Montana Aerospace
Slide 22: World class leader of high lift devices and structural parts
WORLD CLASS LEADER OF HIGH LIFT DEVICES, LARGE STRUCTURAL PARTS AND COMPLEX MECHANICAL ASSEMBLIES MADE OUT OF ALUMINUM, TITANIUM AND STEEL Overview € upto 260m revenue p.a. between 2018-20 ~1,100 Employees ONE STOP SOLUTION FOR HIGH-LIFT MECHANISMS & COMPLEX MECHANICAL SUB-ASSEMBLIES 4 ~140k m2 Manu
Slide 23: Collaboration of two leading players creating an industrial champion
THE COLLABORATION OF TWO LEADING PLAYERS WOULD CREATE A STRONG INDUSTRIAL CHAMPION BEST POSITIONED TO LEVERAGE CUSTOMER NEEDS O F TOMORROW #1 Aerostructures Supplier - Quality - Costs - Reliability - Innovation - Carbon Footprint #1 etc… - 23 - Montana Aerospace
Slide 24: Deal structure
DEAL STRUCTURE ASCO PRODUCTS (an excerpt) DEAL TERMS Payment split in cash & share consideration Earn-out option until 2025 amounting to EUR 30m INVESTMENT Goal: 15% EBITDA margin RATIONALE at EUR 300m revenue On top high synergy potential in Group, adding further benefit - 24 - Montana Aerospace
Slide 25: Guidance 2022
GUIDANCE 2022 - 25 - Montana Aerospace
Slide 26: Minimal exposure to Russia/Ukraine region mitigates risk
MINIMAL EXPOSURE TO REGION MITIGATES POTENTIAL COMPANY RISK UKRAINE (UA) RUSSIA (RU) For 2022, direct impact of approx. €8.0m sales at risk o/w €4.5m are already received as a prepayment Overall, indirect risks on energy price development as well as impact on raw material prices On raw material, min
Slide 27: Expectations for 2022
EXPECTATIONS FOR 2022 Aerostructures: worldwide sales expected to grow further based 1 on build rate development Vertical integration positions Montana Aerospace as the one- 2 stop-shop for development of future airplane types Revenue expected to roughly double within two years with 3 approx. EUR 1.
Slide 28: Outlook
OUTLOOK Global demand for new, efficient aircrafts on high level, keeping 1 OEM build rates rising to record levels Vertical integration positions Montana Aerospace 2 as the one-stop-shop for OEMs Revenue expected to roughly double within two years with 3 approx. EUR 1.4bn sales in 2023 and approx.
Slide 29: Further segment guidance 2022
FURTHER SEGMENT GUIDANCE 2022 - Aerostructures sales worldwide to increase sharply, build rates ramp up continuing with fastened speed - Ongoing cost pressure and local to local approach as well as ESG need – additional chances for Montana AEROSPACE - Globally, massive challenges concerning Material
Slide 30: Guidance for 2022
GUIDANCE FOR 2022 Total Sales Guidance Sales Split Segment Sales Guidance in EURbn in EURbn in EURm, approximated ~45% >1.1 >1.1 >0.9 ~440 0.79 ~190 ~500 >0.1 FY 2021 2022 Total Organic In-organic Aerospace E-Mobility Energy ▪ Sales increase driven by sustainable ▪ Total revenue estimated to grow by
Slide 31: Guidance for 2022
GUIDANCE FOR 2022 Adj. EBITDA margin (approx.) CAPEX cash-out OUTLOOK 2023 & ONWARDS in % in EURm ~10% Sales increase by 2023 -26% another ~20% >7.5 121,4 7,1 90,0 Overproportional EBITDA growth Massive CAPEX reduction FY 2021 B 2022 FY 2021 B 2022 Positive Free Cash Flow ▪ Slightly overproportional
Slide 32: Build rate guidance: an expected new normal
MONTANA AEROSPACE BUILD RATE GUIDANCE: AN EXPECTED NEW NORMAL Montana Aerospace guidance is based on the following build rates Build rates by key platforms 2022 2023 2024 2025 A220 6/mo 8/mo 10/mo 10/mo A320 51/mo 60/mo 62/mo 63/mo family A330 2/mo 2/mo 2/mo 2/mo A350 5/mo 5/mo 6/mo 6/mo 2022 2023 2
Slide 33: Key areas of focus in 2022
KEY AREAS OF FOCUS IN 2022 2020-2021: COVID-19 2022: BUILD RATE RAMP-UP ENERGY COST INFLATION HUMAN RESOURCES TRANSPORTATION MATERIAL - Pass-through clauses cover >2/3 - Chasing for talent – skilled - Supply chain under pressure, - Stable and diversified supply of current global energy cost rise emp
Slide 34: Montana Aerospace
- 34 - Montana Aerospace