Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — Q1 2020 Earnings Presentation
23 slides from Mtu Aero Engines's earnings presentation, Apr 30, 2020
Slide 1: Q1 Results 2020
Q1 Results 2020 Conference Call with Investors & Analysts 30 April 2020 - Investor Relations
Slide 2: Q1 2020 Review
Q1 2020 Review • Sharp decline in traffic beginning in February and intensifying in March • IATA forecasts passenger traffic to decline by 48% in 2020 • Measurements implemented to minimize infection risks for employees and to reduce cash consumption • Temporary suspension of operations at sites in
Slide 3: Financial Highlights Q1 2020
Financial Highlights Q1 2020 Revenues EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€) (in m€) 1.273 +13% 1.131 188 (16.6%) 182 -3% (14.3%) 141 134 -4% 128 -51% 69 3M 2019 3M 2020 3M 2019 3M 2020 3M 2019 3M 2020 3M 2019 3M 2020 30 April 2020 Q1 2020 Results - Investor Relations 3
Slide 4: OEM Segment
OEM Segment (in m €) 3M 2019 3M 2020 Change Revenues 491 497 1% Military Business 105 98 -7% Commercial Business 386 399 4% EBIT adj. 131 116 -11% EBIT adj. margin % 26.6% 23.4% • US$ Commercial business growth: ~ 1% • Military revenues down by 7% • EBIT margin down due to change in business mix (Mi
Slide 5: Commercial MRO
Commercial MRO (in m €) 3M 2019 3M 2020 Change Revenues 655 795 21% EBIT adj. 57 66 16% EBIT adj. margin % 8.7% 8.3% • US$ Organic Revenue growth ~ 19% • EBIT margin slightly down 30 April 2020 Q1 2020 Results - Investor Relations 5 © MTU Aero Engines AG. The information contained herein is propriet
Slide 6: MTU expects a commercial aviation market recovery to 2019-level in 2022
MTU expects an commercial aviation market recovery to 2019-level in 2022 Market recovery & risks and opportunities Market recovery – basic assumptions for passenger traffic Risks for further market recovery delay • MTU follows basically the IATA assumptions regarding • No effective medicine and/or v
Slide 7: MTU business segments 2020 market expectation
MTU business segments 2020 market expectation Scenarios modelled lead to a yet volatile outlook for 2020 • Military business to remain largely unaffected • Civil aerospace business with significant reduction in demand in both OE and AM • Standard Commercial MRO to see reduced demand at least through
Slide 8: Appendix
Appendix 30 April 2020 Q1 2020 Results - Investor Relations 8 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 9: Group Order Book almost stable
Appendix Group Order Book almost stable 19.8 bn€ -2% 19.4 bn€ Order book 2019/12/31 Order book 2020/03/31 30 April 2020 Q1 2020 Results - Investor Relations 9 © MTU Aero Engines AG. The information contained herein is proprietary to the MTU Aero Engines group companies.
Slide 10: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of April 30, 2020 (% of net exposure) in m$ 1,330 (=75%) 1,060 (=57%) 740 440 (=38%) (=23%) 40 (=2%) 2020 2021 2022 2023 2024 Average hedge rate (€/US$) 1.18 1.18 1.17 1.16 1.13 30 April 2020 Q1 2020 Results - Investor Relations 10 © MTU Aer
Slide 11: Profit & Loss
Appendix Profit & Loss 3M 2019 3M 2020 Change Revenues 1,131 1,273 13% Total cost of sales -893 -1,035 Gross profit 238 238 0% Gross profit margin % 21.1% 18.7% R&D according to IFRS -17 -15 SG&A -53 -59 Other operating income (expense) -9 -4 P&L of companies accounted at equity and equity investmen
Slide 12: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators 3M 2019 3M 2020 Change EBIT reported 175 169 -3% Adjustment (PPA Depreciation & Amortization) 5 5 Adjustment (IAE Upshare) 8 8 EBIT adjusted 188 182 -3% thereof P&L of companies accounted "at equity" 14 9 Interest result -1 -3 Interest f
Slide 13: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. 3M 2019 3M 2020 Change Revenues Group 1,131 1,273 13% OEM Commercial 386 399 4% OEM Military 105 98 -7% MRO 655 795 21% Consolidation -15 -19 EBIT adjusted Group 188 182 -3% OEM (Commercial / Military) 131 116 -11% MRO 57 66 16% Consolidation 0 0 EBIT adjusted
Slide 14: Research & Development
Appendix Research & Development 3M 2019 3M 2020 Change Total R&D 58 60 3% Customer funded R&D -6 -10 -65% Company expensed R&D 52 50 -5% Capitalization of R&D -27 -24 Amortisation 5 5 Total R&D impact P&L (on EBIT) 30 31 3% thereof booked into sales and COGS 13 16 thereof booked into R&D according t
Slide 15: Financial Result
Appendix Financial Result 3M 2019 3M 2020 Change Interest income 3 1 -68% Interest expense -4 -4 0% Interest result -1 -3 -121% Financial result on other items 0 -3 US$ / non cash valuations / others 4 -1 Interest for pension provisions -4 -2 Financial result -1 -6 <-300% 30 April 2020 Q1 2020 Resul
Slide 16: MTU's Cash development January – March 2020
Appendix MTU’s Cash development January – March 2020 16 Free Cashflow: +69 -80 -0 0 149 0 -50 3 0 156 140 Adjusted Non-operating exceptional items: -0 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Financing payment
Slide 17: Cash Flow
Appendix Cash Flow (in m €) 3M 2019 3M 2020 Change Net Income IFRS 127 112 -12% Depreciation and amortization 60 66 Change in provisions and liabilities 79 76 Change in working capital -83 -115 Taxes 20 12 Interest, derivatives, others 0 -1 Cash Flow from operating activities 202 149 -26% Net Invest
Slide 18: Net debt
Appendix Net debt (in m €) 31.12.2019 31.03.2020 Change Bonds and notes 100 101 Convertible bonds 562 563 Financial liabilities to bank 40 30 thereof Revolving Credit Facility 0 0 thereof Note Purchase Agreement 30 30 Financial lease liabilities 147 176 Loans from related companies and third parties
Slide 19: Working capital
Appendix Working capital (in m €) 31.12.2019 31.03.2020 Change Inventories 1,279 1,359 Prepayments -396 -414 Receivables 2,083 2,216 Payables -1,456 -1,536 Working Capital 1,510 1,625 8% 30 April 2020 Q1 2020 Results - Investor Relations 19 © MTU Aero Engines AG. The information contained herein is
Slide 20: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2019 31.03.2020 Change Intangible assets 1,163 1,170 Property, plant, equipment 1,101 1,122 other non-current assets 1,892 1,891 Total non-current assets 4,155 4,183 1% Current assets 3,610 3,841 6% Total assets 7,765 8,024 3% Equity 2,421 2,438 1% Non-current l
Slide 21: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization 3M 2019 3M 2020 Change OEM 43 46 MRO 17 20 Total depreciation / amortization* 60 66 10% PPA OEM 5 5 PPA MRO 1 1 IAE Upshare OEM 8 8 PPA depreciation / amortization & IAE Upshare amortization (EBIT adjustments) 13 13 -1% OEM 31 34 MRO 16 19 Depreciation / amor
Slide 22: 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
Slide 23: Proprietary Notice
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