Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q3 2015 Earnings Presentation
25 slides from Mtu Aero Engines's earnings presentation, Oct 26, 2015
Slide 1: Q3 2015 Results - MTU Aero Engines
Q3 2015 Results- MTU Aero Engines Conference Call with Investors and Analysts 26 October 2015
Slide 2: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 26 October 2015 Investor Relations - 9M 2015 results 2
Slide 3: Business Highlights Q3 2015
Business Highlights Q3 2015 • Strong passenger traffic in Aug 2015 • Passenger load factor at all time high • Ramp up successfully initiated • Moody’s and Fitch confirmed their Investment grade rating for MTU • 9M results in line with our year end expectations 3 26 October 2015 Investor Relations -
Slide 4: Agenda
Agenda • Business Highlights • Group key figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 26 October 2015 Investor Relations - 9M 2015 results 4
Slide 5: Financial Highlights 9M 2015
Financial Highlights 9M 2015 Revenues (m€) EBIT adj. / EBIT adj. Margin (m€ / %) 3.500 400 10,2% +16% 9,6% 10% 3.000 3.257 +23% 2.500 2.812 300 333 8% 2.000 271 6% 200 1.500 4% 1.000 100 2% 500 0 0 0% 9M 2014 9M 2015 9M 2014 9M 2015 Net Income adj. / EPS adj. (m€ / €)* Free Cash Flow (m€) 300 4,53 1
Slide 6: US$ Exchange Rate / Hedge Portfolio
US$ Exchange Rate / Hedge Portfolio Hedge book as of October 26, 2015 (% of net exposure) (mUS$) 982 (=93%) 646 (=60%) 430 (=36%) 110 (=8%) 2015 2016 2017 2018 Average hedge rate (US$/€): 1.25 1.27 1.24 1.16 26 October 2015 Investor Relations - 9M 2015 results 6
Slide 7: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 26 October 2015 Investor Relations - 9M 2015 results 7
Slide 8: Commercial OEM Business
Commercial OEM Business • A320neo on track for EIS 2015 • MTU final assembly line for GTF engine in preparation • First flight of MRJ with the GTF engine will take place end of Oct 15 • Optimization of V2500 FHA agreements on track • Manufacturing of the GE9x flowpath hardware has started • MTU part
Slide 9: OEM Segment
OEM Segment Order book 31/12/2014 30/09/2015 Change Order book (m€) 6,763.6 6,744.1 0% Commercial Business (mUS$) 7,450.0 6,964.6 -7% Military Business (m€) 627.4 527.4 -16% (m€) 9M 2014 9M 2015 Change Revenues 1,915.6 2,138.7 12% Commercial Business 1,563.9 1,792.8 15% Military Business 351.7 345.9
Slide 10: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 26 October 2015 Investor Relations - 9M 2015 results 10
Slide 11: Commercial MRO Business
Commercial MRO Business • Sales campaigns wins at a value of 1.5 bn US$ in 9M 2015 • MTU Maintenance extended its V2500 MRO contract with Atlasglobal • MTU Maintenance Hannover started maintenance work for first engines from Iran • New service for engine asset and material management launched • High
Slide 12: Commercial MRO Business
Commercial MRO Business (mUS$) 31/12/2014 30/09/2015 Change Order book 5,357.8 4,910.0 -8% (m€) 9M 2014 9M 2015 Revenues 920.8 1,148.4 25% EBIT adj. 79.9 112.4 41% EBIT adj. Margin % 8.7% 9.8% • Contract volume down by 8% • Organic revenues up by 3% • Favourable US$ fx rate support EBIT margin 26 Oc
Slide 13: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 26 October 2015 Investor Relations - 9M 2015 results 13
Slide 14: Guidance 2015 confirmed
Guidance 2015 confirmed in m€ FY 2014 Guidance 2015 Revenues 3,914 ~ 4,600 383 EBIT adj. ~ 430 9.8% Net income adj. 253 ~ 295 • Guidance 2015 based on 1,10 US$/€ • Commercial US$ OE sales up high single digit • Commercial US$ spare parts sales up low to mid single digit • Military revenues down 10%
Slide 15: Agenda
Agenda • Business Highlights • Key Financial Highlights / Group figures • Commercial and Military OEM • Commercial MRO • Guidance 2015 • Appendix 26 October 2015 Investor Relations - 9M 2015 results 15
Slide 16: Net Income adj.
Appendix Net Income adj. (m€) Q3 2014 Q3 2015 Change 9M 2014 9M 2015 Change Revenues 995.8 1,055.0 6% 2,811.6 3,257.0 16% EBIT adj. 100.2 120.3 20% 270.9 333.1 23% Thereof P&L of companies accounted "at equity" 5.6 7.7 38% 13.2 20.8 58% Interest Result -1.2 0.2 117% -5.9 -0.8 86% Interests for pensi
Slide 17: Profit & Loss
Appendix Profit & Loss (m€) Q3 2014 Q3 2015 Change 9M 2014 9M 2015 Change Revenues 995.8 1,055.0 6% 2,811.6 3,257.0 16% Total Cost of Sales -858.9 -898.3 -2,424.6 -2,829.0 Gross Profit 136.9 156.7 14% 387.0 428.0 11% Gross Profit Margin 13.7% 14.9% 13.8% 13.1% R&D company funded -19.6 -21.9 -58.0 -4
Slide 18: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (m€) Q3 2014 Q3 2015 Change 9M 2014 9M 2015 Change Revenues Group 995.8 1,055.0 6% 2,811.6 3,257.0 16% OEM Commercial 531.0 541.0 2% 1,563.9 1,792.8 15% OEM Military 126.2 130.6 3% 351.7 345.9 -2% MRO 347.9 394.2 13% 920.8 1,148.4 25% Consolidation -9.3 -10.8
Slide 19: Research & Development
Appendix Research & Development (m€) Q3 2014 Q3 2015 Change 9M 2014 9M 2015 Change Company expensed R&D 38.2 45.8 20% 98.2 124.9 27% OEM 37.0 44.2 94.9 120.9 MRO 1.2 1.6 3.3 4.0 Capitalization of R&D -18.6 -23.9 -40.2 -78.7 OEM -18.6 -23.9 -40.2 -78.7 MRO 0.0 0.0 0.0 0.0 R&D according to IFRS 19.6 2
Slide 20: MTU's Cash development January – September 2015
Appendix MTU’s Cash development January – September 2015 -5.3 Free Cashflow: +119.4 259 -196.1 34 -70.2 21 1.5 2 -56.5 64.6 - Adjusted Non operating 59.3 exceptional items: +56.5 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash Operating Investing
Slide 21: Cash Flow
Appendix Cash Flow (m€) 9M 2014 9M 2015 Change Net Income IFRS 138.2 151.8 10% Depreciation and amortization 110.8 118.0 Change in provisions * 22.9 68.7 Change in Working Capital -98.6 -120.8 Taxes -16.3 13.4 Interest, derivatives, others 26.4 27.9 Cash Flow from operating activities 183.4 259.0 41
Slide 22: Net financial debt at 816 m€
Appendix Net financial debt at 816 m€ (m€) 31/12/2014 9M 2015 Change Corporate bonds 352.7 350.2 Financial liabilities arising from IAE V2500 414.6 423.2 Financial liabilities to bank 39.7 90.1 RCF 9.6 60.1 Note Purchase Agreement 30.1 30.0 Liabilities to related companies 0.1 1.1 Finance lease liab
Slide 23: Working Capital
Appendix Working Capital (m€) 31/12/2014 30/09/2015 Change Change in % Gross inventories 741.0 823.4 82.4 Prepayments -485.7 -381.7 104.0 Receivables 1,004.2 977.7 -26.5 Payables -790.4 -829.5 -39.1 Working Capital 469.1 589.9 120.8 26% 26 October 2015 Investor Relations - 9M 2015 results 23
Slide 24: PPA Depreciation / Amortization (in m€)
Appendix PPA Depreciation / Amortization (in m€) (in m€) Q3 2014 Q3 2015 9M 2014 9M 2015 Total depreciation / amortization OEM 30.2 31.9 91.7 96.9 MRO 7.8 7.8 22.6 23.9 MTU total 38.0 39.7 114.3 120.8 PPA depreciation / amortization PPA OEM 5.6 5.4 16.8 16.3 PPA MRO 0.6 0.6 1.9 1.8 IAE Upshare OEM 5
Slide 25: 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