Académique Documents
Professionnel Documents
Culture Documents
April 2016
Luis Sanchez
luisvsanchez@gmail.com
Company Overview
Business Description
Business Segments
Civil Aerospace
Defense Aerospace
Power Systems
Marine
Nuclear
Back-up power
Royal Navy
submarines
Financial Summary
Capitalization
Market Cap
Financials
2015 Sales
13,354
EV/2015 EBITDA
5.9x
Cash
3,178
Backlog
76,399
EV/2016E EBITDA
8.5x
Debt
3,398
2015 EBITDA
2,105
EV/2016E Sales
0.9x
EBITDA Margin
15.8%
Price/2016E EPS
24.6x
Enterprise Value
12,227
Valuation
12,447
Sales Mix
( in millions)
2010
2011
2012
2013
2014
2015
Sales
10,866
11,277
12,209
15,505
13,864
13,354
6.4%
3.8%
8.3%
27.0%
(10.6%)
(3.7%)
59,200
57,630
60,146
71,612
73,674
76,399
% of sales
545%
511%
493%
462%
531%
572%
EBITDA
1,346
1,574
1,898
2,367
2,281
2,105
Growth %
Backlog
Margin %
Free Cash Flow
ROIC
12.4%
714
12.8%
14.0%
581
12.4%
15.5%
548
14.9%
15.3%
781
16.7%
16.5%
254
13.3%
15.8%
179
Marine
10%
Nuclear
5%
Power
Systems
18%
Defense
Aero
15%
EBIT Mix
Marine
1%
Nuclear
5%
Power
Systems
13%
Civil
Aero
52%
Defense
Aero
26%
Civil
Aero
55%
11.3%
Investment Thesis
Summary Thesis
Rolls-Royce has the best wide body aircraft engines in production and
its Civil Aerospace business is expected to become the market leader
in wide body engines within the next 5 years
Low
1,709
1,324
1,517
1.0x
1,517
Defense Aerospace
High
1,709
1,324
1,517
1.5x
2,275
Power Systems
2014 EBITDA
2015 EBITDA
Avg. EBITDA
EBITDA Multiple
Valuation
Low
440
361
400
6.0x
2,400
2014 EBITDA
2015 EBITDA
Avg. EBITDA
EBITDA Multiple
Valuation
Low
385
416
400
8.0x
3,203
Civil Aerospace
High
385
416
400
10.0x
4,003
Nuclear
High
440
361
400
8.0x
3,200
2014 EBITDA
2015 EBITDA
Avg. EBITDA
EBITDA Multiple
Valuation
Low
67
86
76
7.0x
534
High
67
86
76
9.0x
686
Low
10,753
High
12,281
10.0%
3.0%
10.0%
4.0%
Low
High
Civil Aerospace
Defense Aerospace
Power Systems
Marine Systems
Nuclear
Enterprise Value
Net Debt
Equity Value
10,753
3,203
2,400
1,517
534
18,406
811
17,595
12,281
4,003
3,200
2,275
686
22,445
811
21,634
12,227
43.9%
12,227
76.9%
6.65
9.57
6.65
11.77
Segment Financials
( in millions)
2010
2011
2012
2013
OE Revenue
1,892
2,232
2,934
3,035
% OE
38.5%
40.1%
45.6%
45.6%
Services Revenue
3,027
3,340
3,503
3,620
% Services
61.5%
59.9%
54.4%
54.4%
Total Revenue
4,919
5,572
6,437
6,655
Growth %
9.8%
13.3%
15.5%
3.4%
Backlog
47,000
48,490
51,942
49,608
% of sales
955%
870%
807%
745%
Gross Profit
Gross Margin %
EBIT
392
499
743
708
% of sales
8.0%
9.0%
11.5%
10.6%
EBITDA
626
747
1,027
1,043
% of sales
12.7%
13.4%
16.0%
15.7%
Capex & Intangibles
568
620
581
891
% of sales
11.5%
11.1%
9.0%
13.4%
Note: segment financials have been adjusted for corporate overhead.
2014
3,463
50.7%
3,374
49.3%
6,837
2.7%
60,296
882%
1,675
24.5%
942
13.8%
1,227
17.9%
836
12.2%
2015
3,258
47.0%
3,675
53.0%
6,933
1.4%
63,299
913%
1,526
22.0%
812
11.7%
1,127
16.3%
668
9.6%
13.8%
10.2%
$24
$15
$13
2014
2014
2014
GE
P&W
RR
(1) Global Air Transport Outlook to 2030, International Civil Aviation Organization.
(2) Gearing up for a fight, The Economist, January 25, 2014.
(3) Represents total civil and defense aerospace platforms. Assumes $1.44 GBP / USD exchange ratio.
350
Engine Deliveries (units)
300
250
200
150
100
50
0
2006
2008
Trent 700
2010
2012
Trent 1000
2014
2016
Trent XWB
2018
2020
Trent 7000
Civil Aerospace
High
12,281
10.0%
3.0%
10.0%
4.0%
Comparable Companies
Company Name
BAE Systems
Enterprise
Market
2016E
2016E
'16 Sales
2016E
Value
Cap
EV / EBITDA
P/E
Growth
EBITDA %
17,851
16,414
8.3x
13.0x
8.7%
11.7%
Meggitt
4,249
3,195
9.3x
12.5x
11.8%
24.8%
Safran
21,370
20,177
8.1x
15.7x
(0.9%)
18.4%
Honeywell
64,678
61,235
11.1x
17.5x
5.2%
20.7%
Thales
11,512
12,793
8.5x
18.3x
4.9%
11.7%
United Technologies
71,412
61,022
9.6x
16.2x
1.3%
18.9%
4,235
3,378
9.1x
13.8x
6.0%
12.6%
9.1x 15.7x
5.2%
18.4%
Low
10,753
Median
Rolls-Royce (Wall St.)
17,851 16,414
12,447
12,227
8.5x
24.6x
(3.1%)
11.0%
Segment Financials
( in millions)
2010
2011
2012
2013
OE Revenue
1,020
1,102
1,231
1,385
% OE
48.0%
49.3%
50.9%
53.5%
Services Revenue
1,103
1,133
1,186
1,206
% Services
52.0%
50.7%
49.1%
46.5%
Total Revenue
2,123
2,235
2,417
2,591
Growth %
0.1%
5.3%
8.1%
7.2%
Backlog
6,506
6,035
5,157
4,071
% of sales
306%
270%
213%
157%
Gross Profit
Gross Margin %
EBIT
309
376
395
424
% of sales
14.6%
16.8%
16.3%
16.4%
EBITDA
338
414
425
471
% of sales
15.9%
18.5%
17.6%
18.2%
Capex & Intangibles
53
70
126
103
% of sales
2.5%
3.1%
5.2%
4.0%
Note: segment financials have been adjusted for corporate overhead.
2014
816
39.4%
1,253
60.6%
2,069
(20.1%)
4,564
221%
567
27.4%
366
17.7%
385
18.6%
78
3.8%
2015
801
39.4%
1,234
60.6%
2,035
(1.6%)
4,316
212%
579
28.5%
393
19.3%
416
20.4%
84
4.1%
Other
21%
Transport
and
Patrol
43%
Combat
36%
Comparable Companies
Company Name
BAE Systems
Enterprise
Market
2016E
2016E
'16 Sales
2016E
Value
Cap
EV / EBITDA
P/E
Growth
EBITDA %
17,851
16,414
8.3x
13.0x
8.7%
11.7%
Meggitt
4,249
3,195
9.3x
12.5x
11.8%
24.8%
Safran
21,370
20,177
8.1x
15.7x
(0.9%)
18.4%
Honeywell
64,678
61,235
11.1x
17.5x
5.2%
20.7%
Thales
11,512
12,793
8.5x
18.3x
4.9%
11.7%
United Technologies
71,412
61,022
9.6x
16.2x
1.3%
18.9%
4,235
3,378
9.1x
13.8x
6.0%
12.6%
9.1x 15.7x
5.2%
18.4%
Median
17,851 16,414
12,447
12,227
8.5x
24.6x
(3.1%)
11.0%
Segment Valuation
Defense Aerospace
2014 EBITDA
2015 EBITDA
Avg. EBITDA
EBITDA Multiple
Valuation
Low
385
416
400
8.0x
3,203
High
385
416
400
10.0x
4,003
10
Segment Financials
( in millions)
2010
2011
2012
2013
2014
OE Revenue
236
% OE
35.4%
Services Revenue
431
% Services
64.6%
Total Revenue
667
Growth %
Backlog
2,617
% of sales
392%
Gross Profit
Gross Margin %
EBIT
% of sales
EBITDA
% of sales
Capex & Intangibles
% of sales
Note: segment financials have been adjusted for corporate overhead.
230
36.1%
408
63.9%
638
(4.3%)
2,499
392%
119
18.7%
50
7.8%
67
10.5%
23
3.6%
2015
251
36.5%
436
63.5%
687
7.7%
2,168
316%
111
16.2%
70
10.2%
86
12.5%
18
2.6%
Comparable Companies
Sales Mix
Segment Valuation
Company Name
Nuclear
Civil 20%
Subs
80%
2014 EBITDA
2015 EBITDA
Avg. EBITDA
EBITDA Multiple
Valuation
Low
67
86
76
7.0x
534
High
67
86
76
9.0x
686
Enterprise
Market
2016E
2016E
'16 Sales
2016E
Value
Cap
EV / EBITDA
P/E
Growth
EBITDA %
Fincantieri
1,828
479
18.4x
NM
4.9%
2.9%
BWX Technologies
2,512
2,403
12.1x
21.7x
3.2%
20.5%
32,238
30,975
10.3x
22.4x
(2.0%)
12.9%
2,854
2,392
9.9x
18.8x
(0.2%)
18.9%
General Dynamics
29,968
29,542
9.2x
14.6x
1.0%
14.8%
Huntington Ingalls
5,005
4,742
7.8x
15.1x
(0.5%)
13.2%
3,929
3,573
12,447
12,227
ABB Ltd.
Curtiss-Wright
Median
Rolls-Royce (Wall St.)
10.1x 18.8x
8.5x
24.6x
0.4%
(3.1%)
14.0%
11.0%
11
Segment Financials
( in millions)
2010
Defense
& Other
12%
Industrial
21%
Energy
30%
Segment Valuation
Power Systems
Marine
37%
2014 EBITDA
2015 EBITDA
Avg. EBITDA
EBITDA Multiple
Valuation
Low
440
361
400
6.0x
2,400
2013
2014
1,893
69.6%
827
30.4%
2,720
(6.6%)
1,971
72%
742
27.3%
253
9.3%
440
16.2%
144
5.3%
2015
1,618
67.8%
767
32.2%
2,385
(12.3%)
1,928
81%
635
26.6%
194
8.1%
361
15.1%
108
4.5%
Enterprise
Market
2016E
2016E
'16 Sales
2016E
Value
Cap
EV / EBITDA
P/E
Growth
EBITDA %
Caterpillar
55,319
32,515
16.1x
21.9x
(12.6%)
12.0%
Cummins
14,052
13,932
8.0x
15.1x
(7.3%)
14.2%
Siemens
72,524
60,704
9.1x
14.7x
4.1%
12.5%
Nuclear
55,319
32,515
9.1x 15.1x
(7.3%)
12.5%
(3.1%)
11.0%
Median
High
440
361
400
8.0x
3,200
2012
Comparable Companies
Company Name
Sales Mix
2011
OE Revenue
1,938
2,004
% OE
70.1%
68.8%
Services Revenue
827
908
% Services
29.9%
31.2%
Total Revenue
2,765
2,912
Growth %
5.3%
Backlog
1,823
1,927
% of sales
66%
66%
Gross Profit
Gross Margin %
EBIT
109
296
% of sales
3.9%
10.2%
EBITDA
109
561
% of sales
3.9%
19.3%
Capex & Intangibles
11
142
% of sales
0.4%
4.9%
Note: segment financials have been adjusted for corporate overhead.
12,447
12,227
8.5x
24.6x
Segment Financials
( in millions)
2010
2011
2012
2013
OE Revenue
1,719
1,322
1,288
1,288
% OE
66.3%
58.2%
57.3%
63.2%
Services Revenue
872
949
961
749
% Services
33.7%
41.8%
42.7%
36.8%
Total Revenue
2,591
2,271
2,249
2,037
Growth %
0.1%
(12.4%)
(1.0%)
(9.4%)
Backlog
2,977
2,737
3,954
1,622
% of sales
115%
121%
176%
80%
Gross Profit
Gross Margin %
EBIT
332
287
294
233
% of sales
12.8%
12.6%
13.1%
11.4%
EBITDA
383
335
337
292
% of sales
14.8%
14.7%
15.0%
14.3%
Capex & Intangibles
65
75
101
23
% of sales
2.5%
3.3%
4.5%
1.1%
Note: segment financials have been adjusted for corporate overhead.
2014
2015
1,070
62.6%
639
37.4%
1,709
(16.1%)
1,567
92%
425
24.9%
138
8.1%
163
9.5%
36
2.1%
773
58.4%
551
41.6%
1,324
(22.5%)
1,164
88%
260
19.6%
15
1.1%
116
8.8%
36
2.7%
Comparable Companies
Sales Mix
Segment Valuation
Company Name
Merchant
24%
Offshore
O&G 56%
2014 Revenue
2015 Revenue
Avg. Revenue
Revenue Multiple
Valuation
Cap
1,828
479
Defense Aerospace
SBM Offshore
Low
1,709
1,324
1,517
1.0x
1,517
Market
Value
Fincantieri
Marine
Naval
20%
Enterprise
High
1,709
1,324
1,517
1.5x
2,275
Wrtsil
6,510
2016E
2016E
EV/EBITDA EV/Sales
'16 Sales
2016E
Growth
EBITDA %
18.4x
0.5x
4.9%
2.9%
2,016
12.7x
NM
(12.6%)
31.1%
6,753
6,412
11.1x
1.7x
1.8%
15.0%
15,393
14,142
19.4x
2.0x
(30.3%)
10.4%
Huntington Ingalls
5,005
4,742
7.8x
1.0x
(0.5%)
13.2%
Saipem
7,425
2,977
7.3x
0.9x
(8.6%)
12.2%
Alfa Laval AB
5,950
4,919
10.7x
1.9x
(10.1%)
18.0%
6,510
4,742
11.1x
1.3x
(8.6%)
13.2%
12,447
12,227
8.5x
0.9x
(3.1%)
11.0%
Baker Hughes
Median
Rolls-Royce (Wall St.)
13
Plans at Rolls-Royce
+269%
+132%
+32%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
(1)
ARM
UK FTSE 100
Nasdaq Composite
Warren East retires as ARM Holdings chief executive, The Telegraph, March 19, 2013.
Likely Outcomes
15
The technology is evolutionary, not revolutionary. RollsRoyce has built upon its three-spool engine for decades
16
Compelling Valuation
Low
High
Civil Aerospace
Defense Aerospace
Power Systems
Marine Systems
Nuclear
Enterprise Value
Net Debt
Equity Value
10,753
3,203
2,400
1,517
534
18,406
811
17,595
12,281
4,003
3,200
2,275
686
22,445
811
21,634
12,227
43.9%
12,227
76.9%
6.65
9.57
6.65
11.77
17
Appendix
18
2017E
2018E
2019E
2020E
2021E
2022E
2023E
2024E
Sales
Growth %
6,859
(1.1%)
7,094
3.4%
7,745
9.2%
8,066
4.1%
8,360
3.6%
8,648
3.4%
8,921
3.2%
9,240
3.6%
9,549
3.4%
9,822
2.9%
10,166
3.5%
EBIT
Margin %
276
4.0%
435
6.1%
687
8.9%
884
11.0%
1,099
13.1%
1,269
14.7%
1,336
15.0%
1,419
15.4%
1,496
15.7%
1,572
16.0%
1,627
16.0%
D&A
% of Sales
450
6.6%
550
7.8%
675
8.7%
772
9.6%
871
10.4%
971
11.2%
1,068
12.0%
1,063
11.5%
994
10.4%
913
9.3%
813
8.0%
EBITDA
Margin %
Tax Rate
Taxes
Net Working Capital
% of Sales
TotalCare Net Debtor
% of Sales
CARs Additions
% of Sales
Capex
% of Sales
Unlevered FCF
Period
Discount Factor
PV of Cash Flow
726
10.6%
26.0%
(72)
(412)
6.0%
(133)
(1.9%)
(210)
3.1%
(500)
7.3%
(600)
0.25
0.976
(586)
985
13.9%
26.0%
(113)
(355)
5.0%
(71)
(1.0%)
(280)
3.9%
(500)
7.0%
(334)
1.25
0.888
(297)
1,362
17.6%
26.0%
(179)
(310)
4.0%
(46)
(0.6%)
(390)
5.0%
(500)
6.5%
(62)
2.25
0.807
(50)
1,655
20.5%
26.0%
(230)
(242)
3.0%
26
0.3%
(420)
5.2%
(500)
6.2%
290
3.25
0.734
212
1,970
23.6%
26.0%
(286)
(167)
2.0%
67
0.8%
(440)
5.3%
(500)
6.0%
644
4.25
0.667
429
2,240
25.9%
26.0%
(330)
(86)
1.0%
114
1.3%
(450)
5.2%
(500)
5.8%
987
5.25
0.606
599
2,404
26.9%
26.0%
(347)
0
0.0%
118
1.3%
(428)
4.8%
(500)
5.6%
1,248
6.25
0.551
688
2,481
26.9%
26.0%
(369)
46
(0.5%)
121
1.3%
(400)
4.3%
(500)
5.4%
1,380
7.25
0.501
691
2,490
26.1%
26.0%
(389)
95
(1.0%)
122
1.3%
(368)
3.8%
(500)
5.2%
1,452
8.25
0.456
661
2,484
25.3%
26.0%
(409)
147
(1.5%)
138
1.4%
(330)
3.4%
(500)
5.1%
1,532
9.25
0.414
634
2,440
24.0%
26.0%
(423)
152
(1.5%)
102
1.0%
(305)
3.0%
(508)
5.0%
1,458
2,982
9,288
12,269
811
11,458
Terminal Value
Long-term growth
Enterprise Value
Present Value
Discount Rate
3.5%
22,428
9,288
10.0%
11.0%
Commentary
10.0%
2025E Terminal
3.0%
3.5%
4.0%
13,309
10,753
8,853
14,357
11,458
9,349
15,615
12,281
9,916
9.0%
10.0%
11.0%
9.0x
10.0x
11.0x
12,369
11,322
10,364
13,494
12,355
11,314
14,618
13,388
12,265
19
2011
2012
2013
2014
425
309
734
2018
530
278
808
2019
562
251
813
2020
600
226
826
2021
630
203
833
2022
650
183
833
2023
670
164
834
2024
2025
282
471
753
223
267
282
1,766
232
6.87
1,570
208
7.14
1,610
230
7.00
1,575
225
7.00
1,610
230
7.00
1,484
212
7.00
1,400
200
7.00
1,260
180
7.00
1,225
175
7.00
1,190
170
7.00
1,155
165
7.00
1,050
150
7.00
392
79
4.96
504
100
5.04
595
140
4.25
900
200
4.50
1,425
300
4.75
1,750
350
5.00
2,000
400
5.00
2,250
450
5.00
2,375
475
5.00
2,500
500
5.00
2,625
525
5.00
2,750
550
5.00
738
393
471
1,305
431
2.89
1,184
382
2.91
945
344
2.75
851
309
2.75
766
278
2.75
689
251
2.75
620
226
2.75
558
203
2.75
502
183
2.75
452
164
2.75
407
148
2.75
366
133
2.75
3,463
14.1%
3,258
(5.9%)
3,150
(3.3%)
3,326
5.6%
3,801
14.3%
3,923
3.2%
4,020
2.5%
4,068
1.2%
4,102
0.8%
4,142
1.0%
4,187
1.1%
4,166
(0.5%)
0
88
300
188
1.60
230
328
0.70
370
528
0.70
580
828
0.70
825
1,178
0.70
1,105
1,578
0.70
1,420
2,028
0.70
1,752
2,503
0.70
2,102
3,003
0.70
2,470
3,528
0.70
2,855
4,078
0.70
3,035
3.4%
370
344
714
2017
275
393
668
2,934
31.5%
330
382
712
2016
224
738
962
2,232
308
431
739
2015
690
148
838
700
133
833
3,625
3,792
3,974
2,029
4,068
0.50
2,071
4,142
0.50
2,126
4,252
0.50
2,189
4,377
0.50
2,215
4,429
0.50
2,209
4,417
0.50
2,176
4,351
0.50
2,175
4,350
0.50
2,148
4,295
0.50
2,157
4,314
0.50
2,155
4,310
0.50
2,145
4,289
0.50
10,520
10,589
10,535
1,345
10,190
0.13
1,304
9,648
0.14
1,353
9,021
0.15
1,210
8,068
0.15
1,150
7,669
0.15
1,110
7,397
0.15
1,060
7,065
0.15
985
6,568
0.15
919
6,125
0.15
838
5,589
0.15
738
4,919
0.15
657
4,379
0.15
3,340
3,503
4.9%
3,620
3.3%
3,374
(6.8%)
3,675
8.9%
3,709
0.9%
3,768
1.6%
3,944
4.7%
4,143
5.0%
4,340
4.8%
4,580
5.5%
4,818
5.2%
5,097
5.8%
5,362
5.2%
5,656
5.5%
5,572
6,437
15.5%
6,655
3.4%
6,837
2.7%
6,933
1.4%
6,859
(1.1%)
7,094
3.4%
7,745
9.2%
8,066
4.1%
8,360
3.6%
8,648
3.4%
8,921
3.2%
9,240
3.6%
9,549
3.4%
9,822
2.9%
Note: engine deliveries and engine install base were projected in a separate schedule. Historical engine deliveries were tracked from
1990 to present and engine life was mapped in a waterfall schedule. Engines were conservatively assumes to come offline after 20
years in service. Projected engine deliveries are based on management commentary and guidance.
20
2011
2,232
3,340
5,572
2012
2013
2,934
3,503
6,437
15.5%
3,035
3,620
6,655
3.4%
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
3,463
3,374
6,837
2.7%
3,258
3,675
6,933
1.4%
3,150
3,709
6,859
(1.1%)
3,326
3,768
7,094
3.4%
3,801
3,944
7,745
9.2%
3,923
4,143
8,066
4.1%
4,020
4,340
8,360
3.6%
4,068
4,580
8,648
3.4%
4,102
4,818
8,921
3.2%
4,142
5,097
9,240
3.6%
4,187
5,362
9,549
3.4%
4,166
5,656
9,822
2.9%
866
25.0%
1,518
45.0%
709
1,675
24.5%
815
25.0%
1,654
45.0%
942
1,526
22.0%
788
25.0%
1,669
45.0%
1,400
1,057
15.4%
831
25.0%
1,696
45.0%
1,300
1,227
17.3%
950
25.0%
1,775
45.0%
1,200
1,525
19.7%
981
25.0%
1,864
45.0%
1,100
1,745
21.6%
1,005
25.0%
1,953
45.0%
977
1,981
23.7%
1,017
25.0%
2,061
45.0%
1,006
2,072
24.0%
1,026
25.0%
2,168
45.0%
1,036
2,158
24.2%
1,036
25.0%
2,294
45.0%
1,067
2,262
24.5%
1,047
25.0%
2,413
45.0%
1,099
2,361
24.7%
1,042
25.0%
2,545
45.0%
1,132
2,455
25.0%
283
296
4.6%
305
3.0%
314
3.0%
323
3.0%
333
3.0%
343
3.0%
353
3.0%
364
3.0%
375
3.0%
386
3.0%
398
3.0%
461
6.7%
515
7.4%
480
7.0%
482
6.8%
519
6.7%
532
6.6%
543
6.5%
553
6.4%
562
6.3%
573
6.2%
583
6.1%
589
6.0%
82
100
100
100
100
100
93
1.4%
104
1.5%
104
1.5%
104
1.5%
104
1.3%
104
1.3%
104
1.2%
104
1.2%
104
1.2%
104
1.1%
104
1.1%
104
1.1%
942
13.8%
812
11.7%
276
4.0%
435
6.1%
687
8.9%
884
11.0%
1,099
13.1%
1,269
14.7%
1,336
15.0%
1,419
15.4%
1,496
15.7%
1,572
16.0%
344
37
381
5.6%
355
55
410
5.9%
385
65
450
6.6%
468
82
550
7.8%
550
125
675
8.7%
600
172
772
9.6%
650
221
871
10.4%
700
271
971
11.2%
750
318
1,068
12.0%
700
363
1,063
11.5%
600
394
994
10.4%
500
413
913
9.3%
1,323
19.4%
1,222
17.6%
726
10.6%
985
13.9%
1,362
17.6%
1,655
20.5%
1,970
23.6%
2,240
25.9%
2,404
26.9%
2,481
26.9%
2,490
26.1%
2,484
25.3%
748
10.9%
502
7.2%
500
7.3%
500
7.0%
500
6.5%
500
6.2%
500
6.0%
500
5.8%
500
5.6%
500
5.4%
500
5.2%
500
5.1%
86
79
1.09
161
100
1.61
210
140
1.50
280
200
1.40
390
300
1.30
420
350
1.20
440
400
1.10
450
450
1.00
428
475
0.90
400
500
0.80
368
525
0.70
330
550
0.60
TotalCare Net Debtor Balance (Net liability from linked MRO contracts)
TC additions
Linked wide body engine deliveries
TC additions per delivery
TC reductions
TotalCare Net Debtor Cash Flows
1,955
-738
232
3.18
275
-463
2,211
-672
208
3.23
268
-404
2,344
-575
230
2.50
442
-133
2,415
-540
225
2.40
469
-71
2,461
-529
230
2.30
483
-46
2,435
-466
212
2.20
492
26
2,368
-420
200
2.10
487
67
2,255
-360
180
2.00
474
114
2,136
-333
175
1.90
451
118
2,015
-306
170
1.80
427
121
1,892
-281
165
1.70
403
122
1,754
-240
150
1.60
378
138
436
6.4%
484
7.0%
412
6.0%
355
5.0%
310
4.0%
242
3.0%
167
2.0%
86
1.0%
0
0.0%
-46
(0.5%)
-95
(1.0%)
-147
(1.5%)
OE Gross Profit
OE Gross Margin (Standard costing)
Services Gross Profit
Services Gross Margin (Standard costing)
Cost of Goods Fixed Costs
Gross Profit
Gross Margin
Administrative Costs
% Growth
Research & Development
% of Segment Sales
Restructuring Costs
JV Income
% of Segment Sales
EBIT
Operating Margin
Asset Depreciation and Other Amortization
Amortization of CARs (Additions amortized straight line over 10 years)
Total D&A
% of Segment Sales
EBITDA
EBITDA Margin
21
Thank You!
DISCLAIMER: THIS PRESENTATION IS NOT A RECOMMENDATION TO BUY OR SELL SECURITIES. PLEASE DO YOUR OWN RESEARCH.
EVERYTHING PRESENTED CONSISTS OF MY OWN OPINIONS AND DOES NOT REPRESENT ANY CURRENT OR FORMER EMPLOYERS.