INVESTOR PRESENTATION 11-2018//FACC GROUP 1
FACC AT A GLANCE // SPOT LIGHT A partner of the global aerospace industry 100% Global 2 5 Aerospace composite Engineering centers Plants Network of engineering- & lightweight Production locations in 13 countries in Austria Tier 1 3,500 20% Partner for all YoY average growth Employees worldwide aerospace OEMs EUR 750,7 Mio. Sales in 2017/18 Nr. 1 100% All Represented of every Largest aerospace Export modern aircraft company in Austria 2
THREE DIVISIONS FOCUSED ON A DEFINED PRODUCT PORTFOLIO AEROSTRUCTURES CABIN INTERIORS ENGINES & NACELLES 3
HIGHLIGHTS - CONTINUOUS POSITIVE A partner of the global aerospace industry REVENUES EARNINGS ORDER BACKLOG in EUR mill. in EUR mill. in USD bn 5,9 750,5 705,7 5,2 63,8 26,9 16/17 17/18 16/17 17/18 16/17 17/18 4
GLOBAL FOOTPRINT TO MEET CUSTOMER DEMANDS FACC Montreal (Canada) FACC Slovakia (Slovakia) FACC AG (Austria) BTC (China) Fesher (China) Manufacturing/Engineering Engineering International supply chain FACC Germany (Germany) partners FACC India (India) Mubadala (Abu Dhabi) TAML (India) ACM (Malaysia) FACC Wichita (US) 5
FACC STRATEGY „VISION 2020“ Growth through innovation and global networks > Sustainable and profitable growth in order to increase the company size to EUR 1 billion by the 2020/21 fiscal year > Consistent processing of the order backlog with continuously increasing efficiency > Strategic Tier 1 partner of the aerospace industry by investing in technology, innovation and production expertise and the highest quality standards > Expansion of the present global FACC network > Continuation of the balanced customer and platform strategy 6
CONSTANTLY GROWING ORDER BACKLOG FACC benefits from an increasing demand for more efficient aircraft. > Since January 2017 FACC Group increased its order backlog from new customer > contracts by more than EUR 1bn. > FACC is the single source partner for the new Airbus A320 „Airspace – Cabine“ and Entrance Area > Contract volume – EUR 700 - 750 mill. > FACC is a strategic partner of Bombardier and is the single source supplier of wing-to-body fairings. The new C Series regional aircraft will feature lightweight components produced by FACC > Contract volume – EUR 100 mill. > Rolls-Royce extends the partnership with FACC to a new engine platform. The contract underlines the strong long lasting partnership between both companies. > Contract volume – EUR 35 mill. 7
EFFICIENCY THROUGH LIGHTWEIGHT Increasing share of composite applications Lightweight components increase the efficiency of modern aircraft Composite components account for around 50% of the total weight of modern aircraft The aircraft are 25 % more efficient, emit 60% less noise and are easier to service A350 B787 52% 50% A380 22% A320 16% 15% B737 3% 3% 8 1967 1981 1987 1992 2007 2011 2015
GLOBAL MARKET FORECAST Production & delivery rates with solid growth Commercial Aircraft : Dynamic increase until 2020 (mostly driven by several ramp ups) and a more moderate growth afterwards. Overall growth driven from growing GDP particularly in emerging markets. Business Jets: benefiting from increasing GDP until 2020 with stable rates afterwards. Regional Jets: Constant over time. 9
GLOBAL MARKET FORECAST Economic environment of the sector OEM´s confirmed long-term outlook Until 2036 Annual growth of revenue passenger kilometer (RPK) at 5% Demand for more than 35,000 aircraft (new and replacements) Growth shifts to Asia Pacific “Point to Point” instead of “Hub- System” Efficiency, Cost & Performance remain top line requirements Single Aisle market dominating market rates and market value 10
FUTURE GROWTH MARKETS China requires 20% of all new aircraft > China requires 20% of all new aircraft China North Europe 20% America 20% 17 % Asia, Middle East 47 % 11
GROWTH MARKET ASIA Changes in travel volume according to region 12
CHINA ´ S AEROSPACE PROGRAM Substantial growth potential for early FACC engagement > ARJ 21 Program ramp up with 100% rate increases > C919 Flight test program and entry into service (EIS) forecasted for 2021 > C929 Possible FACC technology engagement > China production: Successful work transfer to China facility accomplished. > Revenue Potential: Current China program rate forecast will provide sustainable revenue potential for FACC starting 2021 and beyond. C929 - Passenger cabin, C919 – Passenger cabin, Winglet 13 ARJ21 – Passenger cabin & Spoiler Wing components
AFTERMARKET SERVICES A market with significant growth potential > Increasing demand for composite repairs and replacement > Airlines as new customers for FACC > Network and footprint extended to service customers > Austrian and Lufthansa as first customers announced > Significant mid-term growth expectations 14
INVESTMENTS FACC is prepared to fullfill future customer demands > Investments in automation, capacity and logistics > I4.0 and automated processses as key elements of FACC´s investment plan > Customers demand for higher automation and rate increases > Investment led to significant increase in capacity at the Engines/Nacelles and Cabin Interior segment 15
AEROSPACE MARKET - SUMMARY The outlook is positive for the aerospace market in the long run OEM ´ s improving their profits through a > modern fleet structrures, increased efficiency & low fuel cost A320, A350, B787 rate increases confirmed by > customers High market potential for MRO business > New developments to come – eg. Comac C929 > FACC participates in global market growth > − Established Tier 1 partner of the industry − Long-term contracts for new aircraft & engines − Existing presence in Europe / Austria, North America, China, India and UAE 16
FINANCIALS Fiscal Year 2017/18 17
REVENUE AND EBIT Revenues grew 6.4% year-on-year with EBIT doubled with cross functional profit Nacelles and Interiors being the biggest improvement measures contributing drivers REVENUES OPERATING RESULT (EBIT) in EUR mill. in EUR mill. EBIT EBIT normalized 20,0 63,8 48,6 18,7 26,9 26,9 18,6 6,1 750,5 -58,8 705,7 FY 16/17 Aerostructures Engines & Interiors FY 17/18 FY 15/16 FY 16/17 FY 17/18 Nacelles 18
REPORTING BY BUSINESS SEGMENT All three divisions profitable since Q2 REVENUES FY 2017/18 REPORTED EBIT FY 2017/18 in EUR mill. in EUR mill. 330,4 334,0 51,1 254,3 38,2 232,8 162,0 142,0 17,0 8,8 -12,4 -13,8 Aerostructures Engine & Nacelles Interiors Aerostructures Engine & Nacelles Interiors 19
FREE CASH FLOW Free Cashflow improvement driven by operating excellence FY 16/17 FY 17/18 in EUR mill. in EUR mill. 33,6 -35,7 55,8 96,7 35,1 -34,4 28,0 -14,4 EBITDA FY Changes in Investments Free Cash Flow 17/18 working capital EBITDA FY Changes in Investments Free Cash Flow EUR + 44.4 mill. 16/17 working capital 20
LIQUIDITY AND INVESTMENT Profitability and investment control drive cash generation CASH FLOW CAPITAL EXPENDITURES in EUR mill. in EUR mill. 35,1 63,1 13 0,2 50,9 63,5 35,1 48,3 34,4 Cash and Cash CF from CF from CF From FX Cash and Cash Equivalents at Operating Investing Financing Equivalents at FY 15/16 FY 16/17 FY 17/18 1st of March Activities Activities Activities 28th of 2017 February 2018 21
BALANCE SHEET Balance Sheet reflects positive performance trend of last two years EQUITY RATIO NET FINANCIAL DEBT in EUR mill. in EUR mill. 38 % 39 % 46 % 323,1 181,9 171,9 254,2 197,0 269,7 FY 2015/16 FY 2016/17 FY 2017/18 FY 2015/16 FY 2016/17 FY 2017/18 22
Q2 2018/19 23 22.11.2018
REVENUE AND EBIT REVENUES BY BUSINESS SEGMENT GROUP REVENUES in Mio. EUR in Mio. EUR 18,9 151,8 135,7 163,5 11,7 7,0 116,8 372,9 85,5 358,7 78,5 H1 2017/18 Aerostructures Engines & Cabin Interiors H1 2018/19 AEROSTRUCTURES ENGINES & NACELLES CABIN INTERIORS Nacelles H1 2017/18 H1 2018/19 24
IFRS 15 - RECONCILIATION EBITDA H1 2018/19 inkl. IFRS 15 EBITDA H1 2018/19 excl. IFRS 15 (not reported) in Mio. EUR in Mio. EUR in Mio. EUR 18.2 9.4 2,3 11,2 7,2 0,4 35,0 40,3 7,0 25,1 29,1 22,1 22,1 EBIT D/A Intangible D/A Tangible D/A Contract EBITDA Assets Assets Costs EBIT D/A Intangible D/A Tangible EBITDA Assets Assets EBITDA (and EBIT) include a positive currency (USD/EUR) translation effect in H1 2018/19 of EUR 4.3 mill. IFRS 15 also results in a sales reduction with an EBIT impact of minus EUR 1.3 mill. 25
CASH AND INVESTMENT CASH FLOW INVESTMENTS in Mio. EUR in Mio. EUR 16,6 0,4 0,2 30,4 16,6 15,6 12,6 77,6 63,5 H1 2016/17 H1 2017/18 H1 2018/19 Cash and cash CF from CF from CF from FX Cash and cash equivalents at operating investing financing equivalents at the beginning activities activities activities the end of the of the period period 26
BALANCE SHEET RATIOS EQUITY AND EQUITY RATIO NET FINANCIAL DEBT in Mio. EUR 39% 44% 39% 182,0 177,8 218,8 306,7 282,6 269,7 H1 2016/17 H1 2017/18 H1 2018/19 H1 2016/17 H1 2017/18 H1 2018/19 27
OUTLOOK 28
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