Mtu Aero Engines Hldgs Ag

Good morning, ladies and gentlemen. Welcome to our conference call for MTO's Q3 2024 results. As usual, we start with a review and some key messages presented by Lars. Peter will start with a look on overall financials and more details on our OEM and MRO segment. Lars will continue with the latest update on the 2024 guidance. This will end the presentation part and we will open the call for questions. Let me now hand over to Lars for the review.

All right. Thank you, Thomas. And also a very warm welcome from my side. Let me start, as usual, with a view on the market environment. Worldwide passenger traffic in August grew 8.6% year on year. Within that, domestic travel traffic rose 5.6%, while international traffic increased 10%. The Asia-Pacific and Latin America regions experienced double-digit growth, while other regions grew between 4 and 10%. As in previous months, strong ticket sales and consistently high load factors reflect sustained high demand for air travel. Cargo flights remained at elevated levels as it continues to benefit from rising e-commerce demand, particularly from consumers in the US and Europe, as well as ongoing capacity limitations in maritime transport. This strong growth reflects the favorable demand environment for air traffic. The demand meets a constrained level of new aircraft deliveries still suffering from supply chain challenges. As a result, older aircraft are kept in service longer than previously expected, resulting in lower retirement rates and a very solid demand for aftermarket services for these platforms. Limited MRO capacity and parts availability provides a solid base for price increases for future MRO services, spare parts, as well as aircraft and engine leases. So what are the effects on MTU? Lower delivery numbers of new aircraft are resulting in a reduction of new engine shipments to air framers. This allows an increased delivery share of spare and lease engines to customers. We have seen this already in the first half of the year and this trend continued in Q3, resulting in an ongoing favorable mixed effect on our EBIT line. MRO demand remains robust for mature engine platforms like the V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, V2500, The spare parts business performed strongly in Q3, particularly for narrow-body and mature wide-body platforms, reinforcing confidence in meeting our full-year targets. Regarding the GTF fleet management plan, we are continuing the execution of the program in alignment with our program partners and are progressing in line with expectations. The output in new parts production as well as MRO output is improving. RTX further reported on the progress in customer settlements. Now 28 agreements covering 75% of the fleet are signed. Key factors to watch remain improvements in turnaround times, growth in MRO capacity and the availability of exchange parts. Pratt & Whitney is continuing to ramp up the production of these parts and we anticipate additional improvements through the coming quarters. And finally, Last week, as you've seen, we published an ad hoc statement with our strong Q3 key figures and were able to raise our earnings forecast for 2024. Our EBIT is expected to exceed 1 billion euros already in 2024, reaching our 2025 target a year ahead of our previously communicated outlook. I will provide further details in a few minutes. Let me now hand over to Peter for the financials.

Yes, thanks Lars, and a warm welcome also from my side. In the first nine months of 2024, we achieved adjusted group revenues of 5.3 billion euros, up 14% from last year. This growth was supported from all business segments. In US dollar terms, revenues were also up 14%. EBIT adjusted increased by 25% to 744 million euros, driven by a strong contribution from our MO segment and a favorable business mix effect in the OEM segment. EBIT margins stood at 14%. Net income adjusted was up 23% to 541 million euros. And free cash flow ended at 213 million euros. Ongoing supply chain here issues continue to put pressure on working capital also in Q3. Let's have a look into the business details. And let me start with the OEM segment on the next page. Total OEM revenues increased by 11% to roughly 1.8 billion euros. Military revenues were up 16% to 426 million euros. TP400 and EJ200 aftermarket and funded development work for the next generation fighter engine were the growth drivers in that segment. Commercial business revenues in euro rose 9% to almost 1.4 billion euros. Organic OE revenues in dollars were up in the low 20% range, mainly driven by higher GTF and IGT deliveries. As in previous quarters, we saw a healthy volume of spare and lease engines supporting profitability. Organic spare part sales in U.S. dollars were up high single digit. Main growth drivers were the V25, white-body platforms as the PW2000, and the GenX as well as business chat engines. EBIT adjusted in absolute numbers increased 19% to €444 million, resulting in a margin increase to almost 25%. The EBIT benefited from the strong growth in military revenues, a more favorable business mix in the new engine sales, and an increased volume of spare parts sales. Now, let's turn the page and move on to the commercial MRO segment. Reported MRO revenues increased by 15% to roughly 3.6 billion euros. US dollar revenues were up in line also with 15%. Main revenue drivers here were G90, the V25, GenX and CF34 and our Engines business. The GTF share was at 31% which remains slightly below our full year expectation of 35%. EBITDA trusted increased 35% to 300 million euros resulting in a margin of 8.4%. The higher margin was the result of a better contract mix in independent business and a lower share and material intensity of GTFMO. Furthermore, the strong results from our engine lease and asset management business continue to be very supportive on EBIT. At this point, I would like to hand back to Lars for some words on the updated guidance 2024.