Montana Aerospace AG · SIX:AERO
Montana Aerospace — FY2023 Earnings Presentation
20 slides from Montana Aerospace's earnings presentation, Apr 3, 2024
Slide 1: FY 2023 Earnings Call
Slide 2: Speaking to you today
SPEAKING TO YOU TODAY A KAI ARNDT C0-CEO MICHAEL PISTAUER CO-CEO & CFO A A
Slide 3: Fastest growing aerospace player in Flight International Top 100
“Montana Aerospace tops sales growth table 2022 as fastest growing Aerospace player” - Flight International Top 100 Ranking, Aug 2023 3
Slide 4: Highlights FY23
- Highlights FY23: Net sales €1,430.4m (+9.5% versus FY22), adj. EBITDA(1) €137.7m (+2.6%), first-time positive free cash flow for full year (€52.6m) - Balance sheet: Net debt reduced to €275.8m (€-3.6m vs. FY2022), trade working capital €294.7m (€-7.0m vs. FY2022), equity ratio 48.3% (43.1% in FY22
Slide 5: We are mission-critical in all three segments
WE ARE MISSION-CRITICAL IN ALL THREE SEGMENTS: AEROSTRUCTURES “MISSION-CRITICAL AEROSTRUCTURES FOR EVERY AIRCRAFT IN THE SKY" E-MOBILITY “LIGHTWEIGHT E-MOBILITY SOLUTIONS TO ENABLE THE MOBILITY REVOLUTION’ ENERGY “POWERING GREEN INNOVATION TO DRIVE THE ENERGY TRANSITION”
Slide 6: Aerostructures contracted shipset value by aircraft program
Narrowbody Military (Transportation) Narrowbody Widebody A400M 737 777/777X A220 MAX A320 787 A321 = Contracted shipset value x 747 Duration of contract Widebody ~€ 3.9 billion 2021 >€7.5bn (most of contracts single A330 eo 2023 source/exclusive supplier) x MAAG build rate assumptions 767 A350 (=OEM
Slide 7: Successful refinancing with syndicated term loans
✓ − Term Loan in the amount of EUR 300 million (for repayment of outstanding SSD/promissory notes) − RCF in the amount of EUR 150 million – Revolving Credit Facility (‘Liquidity Reserve’) − Maturity: 3 years for all tranches − Strict ring-fencing concept − Financial covenants on Montana Aerospace Gr
Slide 8: Key financials FY 2022 vs FY 2023
in EURm FY 2022 FY 2023 yoy change Net Sales 1,306.1 1,430.4 +9.5% ✓ Adj. EBITDA 134.2(1) 137.7 +2.6% ✓ CAPEX spent(2) -86.0 -69.4 +16.6 ✓ TWC 301.7 294.7 -2.3% ✓ Total assets 2,220.6 1,935.5 -12.8% ✓ Net debt 279.4 275.8 -3.6 ✓ Free Cash Flow -18.9 52.6 +71.5 ✓ Note(s): (1) For comparison reasons,
Slide 9: Net sales by segment
in EURm +147% +48% +11% +18% 704.5 636.4 +31% 567.3 479.6 -16% 383.0 285.0 191.2 160.9 122.5 FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 9
Slide 10: Group net sales and adjusted EBITDA FY23
. adj. EBITDA margin - In FY23, Montana Aerospace generated net sales of €1,430.4 million +9.5% (+9.5% compared to FY22) 1,430.4 134.2 10.3% 137.7 9.6% - However, this was slightly below our own 1,306.1 guidance of EUR 1.5 billion, due to the 388.2 ongoing challenging supply dynamics for Q4 383.5 ex
Slide 11: Aerostructures segment FY23
. adj. EBITDA margin - In FY23, the Aerostructures segment achieved net sales of €704.5 million(+10.7% vs. FY22) +10.7% - Spurred by sales wins (e.g., Airbus 704.5 69.4 10.9% 89.2 12.7% Atlantic, Boeing, GKN Fokker) 636.4 206.8 - Penetrating commercial space market with new contract Q4 202.6 - Adjus
Slide 12: E-Mobility segment FY23
. adj. EBITDA margin - In FY23, the E-Mobility segment generated net sales of €160.9 million(-15.8% vs. FY22) -15.8% - Sales decrease mainly caused by 191.2 24.4 12.8% 25.4 15.8% reduction of sales of recycled aluminum billets Q4 50.4 160.9 - Grey imports from outside Europe led to 33.0 oversupply a
Slide 13: Energy segment FY23
. adj. EBITDA margin - In FY23, the Energy segment achieved net sales of €567.3 million(+18.3% vs. FY22) +18.3% - Tremendous opportunities thanks to 567.3 22.8(1) 4.8% 25.1 4.4% energy-transition-related structural market shifts 479.6 149.3 - Energy transition boosting customer Q4 131.0 demand, expe
Slide 14: Free cash flow and net debt
-2.1 -69.4 (CAPEX) 52.6 426.2 124.1 -71.5 - In FY23, Montana Aerospace, for the first -303.3 time, generated a positive FCF of €52.6 -0.3 175.3 million(+€71.5 million vs. FY22) - Marking the end of ramp-up phase with Cash and cash Cash flow from Cash flow Cash flow Exchange rate Cash and cash 2023 d
Slide 15: Q2 2023 Q3 2023 Q3 2022
191.8 116.7 39.4 44.4 -8.2 -76.4 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 185.8 97.8 27.0 30.1 -52.4 -102.3 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Note(s): (General) Q2 2022 - Q4 2022 include former none-core machinery business (Alpine Metal Tech/AMT), which was divested in Dec. 2022
Slide 16: Q3 2022 Q4 2022 Q1 2023
503.7 391.3 372.0 381.7 301.7 294.7 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 17.8 -5.6 -5.3 -10.0 -17.5 -28.2 Q3 2022 Q4 2022(1) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Note(s): (General) Q2 2022 - Q4 2022 include former none-core machinery business (Alpine Metal Tech/AMT), which was divested in Dec.
Slide 17: Production performance, personnel and other expenses
Production Performance Personnel expenses Other op. expenses/income in EURm in EURm in EURm ▲ in finished & unfinished goods Net Sales +7% +46% +8% 1.318,6 1.420,1 ~21% ~20% ~7% ~10% 12,4 of Net of Net of Net of Net Sales Sales Sales Sales 1.306,1 1.430,4 -96,0 -268,3 -287,4 -139,7 -10,3 FY 2022 F
Slide 18: Guidance 2024 and mid-term targets
Sales increase to ~EUR 1.7bn Adj. EBITDA growth to EUR 180-200M Positive Free Cash Flow Positive Net Income Streamline Trade Working Capital Sales of close to EUR 2.0bn Adj. EBITDA growth to >EUR 250M 18
Slide 19: 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 UNLAWFUL. This
Slide 20: 20
20