Mtu Aero Engines Ag · XETR:MTX
Mtu Aero Engines — 9M 2023 Earnings Presentation
22 slides from Mtu Aero Engines's earnings presentation, Oct 27, 2023
Slide 1: 9M 2023 Results – Conference call with Investors and Analysts
9M 2023 Results – Conference call with Investors and Analysts 10/27/2023 - Investor Relations
Slide 2: Q3 2023 Review
Q3 2023 Review Passenger Air Traffic – RPK*) GTF update Q3 2023 Review Aug 2023 vs. Aug 2019 I Passenger traffic at 95.7% of Aug 2019 levels I Enhanced GTF inspection program announced in I Guidance 2023 confirmed adjusted for GTF inspection I Domestic traffic above Pre-Covid levels September progra
Slide 3: Financial Highlights 9M 2023
Financial Highlights 9M 2023 Revenues* EBIT adjusted Net income adj. Free Cash Flow (in m€) (in m€) (in m€) (in m€) 4,610 +21% 3,818 597 (13.0%) +33% 448 (11.7%) 438 +37% 319 +17% 257 219 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 * in 2023 adjusted by PW1100G Powder Metal issue
Slide 4: Update on GTF inspection program – Financial impacts
Update on GTF inspection program – Financial impacts I MTU has to share obligations for customer support as well as expenses for I Total effect on reported revenues 1,013 m$ 956 m€ additional MRO-efforts I Total effect on reported EBIT 1,030m$ 972 m€ I Customer support estimated at 5.3 bn$ @100% for
Slide 5: OEM Segment
OEM Segment (in m €) 9M 2022 9M 2023 Change Revenues* 1,255 1,584 26% Military Business 309 367 19% Commercial Business* 946 1,217 29% EBIT adj. 251 374 49% EBIT adj. margin % 20.0% 23.6% • Organic US$ Commercial revenues up by 22% • Military revenues up by 19% • EBIT margin up due to business mix a
Slide 6: Commercial MRO
Commercial MRO (in m €) 9M 2022 9M 2023 Change Revenues 2,644 3,108 18% EBIT adj. 196 223 14% EBIT adj. margin % 7.4% 7.2% • Organic US$ Revenues up by 20% • EBIT margin down due to business mix 6 27 October 2023 - Q3 2023 Results Investor Relations
Slide 7: Guidance 2023 - Adjusted EBIT and adj. FCF 2023 confirmed
Guidance 2023 - Adjusted EBIT and adj. FCF 2023 confirmed ORGANIC REVENUE Military Commercial OE Total Group Sales* EBIT adj. Up mid teens % Up thirty % EUR 6.1 – 6.3 bn € >800 Mio € FCF adj. Commercial Commercial MRO > 2022 actuals Spares MRO up high teens % Up high teens GTF share at mid to high t
Slide 8: Appendix
Appendix 8 27 October 2023 - Q3 2023 Results Investor Relations
Slide 9: Group Order Book almost stable
Appendix Group Order Book almost stable 22.3 bn€ -1% 22.0 bn€ Order book 2022/12/31 Order book 2023/09/30 9 27 October 2023 - Q3 2023 Results Investor Relations
Slide 10: US$ Exchange Rate / Hedge Portfolio
Appendix US$ Exchange Rate / Hedge Portfolio Hedge book as of October 27, 2023 in m$ 1,940 1,460 1,000 400 20 2023 2024 2025 2026 2027 Average hedge rate (€/US$) 1.12 1.13 1.12 1.09 1.12 10 27 October 2023 - Q3 2023 Results Investor Relations
Slide 11: Profit & Loss
Appendix Profit & Loss (in m €) Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change Revenues 1,349 560 -58% 3,818 3,653 -4% Revenues adjusted* 1,349 1,517 12% 3,818 4,610 21% Total cost of sales -1,114 -1,283 -3,233 -3,856 Gross profit 234 -723 <-300% 585 -203 -135% R&D according to IFRS -28 -28 -75 -82 S
Slide 12: Reconciliation to adjusted Key Performance Indicators
Appendix Reconciliation to adjusted Key Performance Indicators (in m €) Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change EBIT reported 147 -793 <-300% 331 -410 -224% Adjustment (PPA Depreciation & Amortization) 5 5 15 14 Adjustment (IAE Upshare) 6 6 17 17 Adjustment (Impairment / Ukraine Impacts) 0 0 8
Slide 13: Segment Revenues and EBIT adj.
Appendix Segment Revenues and EBIT adj. (in m €) Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change Revenues Group* 1,349 1,517 12% 3,818 4,610 21% OEM Commercial* 350 385 10% 946 1,217 29% OEM Military 95 138 45% 309 367 19% MRO 933 1,026 10% 2,644 3,108 18% Consolidation -30 -33 -81 -82 EBIT adjusted G
Slide 14: Research & Development
Appendix Research & Development (in m €) Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change Total R&D 56 66 18% 192 224 17% Customer funded R&D -10 -15 -53% -44 -55 -23% Company expensed R&D 46 51 10% 147 169 15% Capitalization of R&D -13 -14 -51 -61 Amortisation 8 9 23 24 Impairment 0 0 63 0 Total R&D i
Slide 15: Financial Result
Appendix Financial Result (in m €) Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change Interest income 1 8 >300% 2 20 >300% Interest expense -7 -16 -116% -22 -29 -27% Interest result -6 -8 -34% -20 -8 59% Financial result on other items -8 -2 -11 -23 US$ / non cash valuations / others -5 5 -3 -3 Interest
Slide 16: MTU’s Cash development January – September 2023
Appendix MTU’s Cash development January – September 2023 1 Free Cashflow: +257 -275 6 526 0 0 -253 3 -6 823 824 Adjusted Non-operating exceptional items: +6 Cash and CF from CF from Payments for Sales Acquisition CF from Translation Adjustments Cash and cash operating investing liquidity Financing p
Slide 17: Cash Flow
Appendix Cash Flow (in m €) 9M 2022 9M 2023 Change Net Income IFRS 212 -312 -247% Depreciation and amortization 279 237 Change in provisions and liabilities 204 1,003 Change in working capital -363 -226 Taxes 22 -205 Interest, derivatives, others 97 28 Cash Flow from operating activities 450 526 17%
Slide 18: Net debt
Appendix Net debt (in m €) 31.12.2022 30.09.2023 Change Bonds and notes 605 602 Convertible bonds 531 488 Financial liabilities to bank 0 4 Revolving Credit Facility 0 0 Financial lease liabilities 166 171 Loans from related companies and third parties 0 3 Other financing liabilities (financing comp
Slide 19: Working capital
Appendix Working capital (in m €) 31.12.2022 30.09.2023 Change Inventories 1,514 1,538 Prepayments -363 -343 Receivables 2,710 3,030 Payables -1,960 -2,096 Working Capital 1,901 2,128 12% 19 27 October 2023 - Q3 2023 Results Investor Relations
Slide 20: Balance Sheet
Appendix Balance Sheet (in m €) 31.12.2022 30.09.2023 Change Intangible assets 1,151 1,154 Property, plant, equipment 1,384 1,457 other non-current assets 1,611 1,864 Total non-current assets 4,146 4,476 8% Current assets 5,085 5,391 6% Total assets 9,230 9,867 7% Equity 3,107 2,670 -14% Non-current
Slide 21: PPA Depreciation / Amortization
Appendix PPA Depreciation / Amortization (in m €) Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change OEM 51 53 217 157 MRO 22 29 62 80 Total depreciation / amortization* 73 82 13% 279 236 -15% PPA OEM 5 5 14 14 PPA MRO 0 0 1 0 IAE Upshare OEM 6 6 17 17 PPA depreciation / amortization & IAE Upshare amorti
Slide 22: 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