Quarterly Report • May 12, 2020
Quarterly Report
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OHB SE is a European aerospace and technology group and one of the most important independent forces in the European space industry. With more than 35 years of experience in developing and executing innovative space technology systems and projects and its range of specific aviation/aerospace and telematics products, the OHB Group is superbly positioned to face international competition. Over the last few years, it has broadened its geographic footprint within Europe and now has facilities in many important ESA member countries. These strategic decisions on locations allow the Group to participate in numerous European programmes and missions. The two "Space Systems" and "Aerospace + Industrial Products" business units reflect the convergence of these activities and the focus on specific core skills. The "Space Systems" business unit focuses on developing and executing space projects. In particular, it is responsible for developing and manufacturing low orbiting and geostationary satellites for navigation, science, communications, earth and weather observation and reconnaissance including scientific payloads. Reconnaissance satellites and broadband wireless transmission of image data form core technologies for security and reconnaissance. The exploration segment works on studies and models for exploring our solar system, primarily Mars, the Moon and asteroids. Its human space flight activities chiefly entail projects for the payloads and operations of the International Space Station, ISS. In addition, OHB is an experienced provider of mechatronic systems for antennas and telescopes and is involved in major radio telescope projects.
The "Aerospace + Industrial Products" business unit is primarily responsible for manufacturing aviation and space products as well as engaging in other industrial activities. In this area, OHB has established itself as a leading supplier of aerospace structures; among other things, it is the largest German supplier for the Ariane program and is the established manufacturer of components for satellites and aircraft. A broad portfolio of service activities completes this business unit – these include the operation of satellites, IT services and applications in the context of transport and mobility.
Given the ubiquitous Covid 19 crisis and its effects, the importance of quarterly results and project progress is of course relativized. Capacities in companies are currently being used significantly to mitigate the effects of the crisis and to minimize them in the future. The space industry has been relatively crisis-resistant up to now for various reasons. One reason for this is the long-term nature of our projects, in which, for example, the failure to deliver components on time does not necessarily lead to an economically negative project result. What is more important, however, is the fact that demand for space products and services has not been dampened by current developments – at present, we do not anticipate that major planned projects will be cancelled completely. However, there is a risk in the delay in the award of contracts. Of course, the further duration of the crisis is also a major uncertainty factor that makes detailed planning difficult.
Based on the information available to date, the Executive Board and Supervisory Board have decided to propose to the Annual General Meeting that no dividend will be paid this year for fiscal 2019. We deliberately made this decision at a late stage (during a telephone meeting of the Supervisory Board on April 28) with the aim of making this decision on the basis of a comprehensive up-to-date database containing as many current developments as possible. Of course, this step is painful for OHB SE shareholders and also contradicts the Company's previous continuous dividend policy. Nevertheless, we clearly consider this approach to be both right and appropriate at a time of very dynamic development and unforeseeable changes. We have installed a comprehensive package of measures, which also provides for the Management Board to waive part of its variable compensation for fiscal 2019. Further elements are currently being implemented.
The results of the first quarter are largely unaffected by the pandemic – even in March productivity at the sites was at a good level overall. The key financial figures achieved are in line with our expectations. We assume that the second quarter, which is regularly weaker, will be additionally influenced by the crisis this year.
The guidance set for 2020 as a whole, which relates to total revenues, EBITDA and EBIT, had been communicated to the capital market this year in the form of an ad-hoc announcement. The figures published on February 13 amounted to EUR 1.1 billion for total revenues, EUR 80 million for EBITDA and EUR 44 million for EBIT. Due to the discontinuation of sales in the Ariane 5 rocket program and the changed market outlook in the successor program Ariane 6, in which a Group company is involved as a major supplier, the key figures of the Aerospace + Industrial Products segment are expected to decline compared to the previous year. This will lead to a reduction in the EBIT of the entire Group in the 2020 business year. At present, it is not yet possible to foresee if the the actual results at the end of the year will or will not deviate from our plans and expectations from February. For this reason, we can neither confirm nor withdraw the guidance today for the key figures total revenues, EBITDA and EBIT for fiscal year 2020.
Bremen, 12 May 2020
The Management Board
Cover: The European satellite navigation system Galileo does more than just show us the way – it also helps to save lives. The SAR search and rescue service, for example, can locate people in distress at sea or in the mountains. The service is Europe's contribution to the international satellite-based positioning system Cospas-Sarsat, which has helped save more than 42,000 lives since 1982 – the only system that can locate an emergency call transmitter on earth regardless of where it is activated. © GSA / ESA-P. Carril
The stock market year 2020 had begun very promisingly – in February the index reached a record high of 13,795 points. In the further course of the quarter, the Covid-19 crisis then dominated the news flow and caused extreme fluctuations in individual stocks. Not a single German company went public in the first quarter of 2020 – the Frankfurt Stock Exchange thus experienced two consecutive quarters without an IPO on the regulated market for the first time since 2009. The German Share Index (DAX) recorded a 25% or 3,313-point loss in the first three months of the current year, closing at 9,936 points on 31 March. The TecDAX, which comprises the 30 largest German technology stocks, performed better overall, ending the first quarter with a negative performance of 14 % (equivalent to 417 points). Over the same period, OHB stock dropped from EUR 43.50 to EUR 32.00, or by 26 %, with the stock peaking at EUR 45.15 on January 9. As a result of the market increase in trading activity in the period under review, the average daily trading volume rose from 4,000 shares (Xetra and Frankfurt floor) to 22,838 shares (including Tradegate).
As of March 31 of this year, OHB SE held 67,996 treasury shares, equivalent to 0.39 % of its share capital.
The current Covid 19 pandemic is impacting OHB SE's annual general meeting in terms of both organization and content. Due to the current pandemic, there is a ban on meetings in Bremen, the end of which is currently not foreseeable. In view of the regulations applicable to companies with the legal form of a Societas Europaea (SE) requiring the annual general meeting to be held within the first six months of the end of the fiscal year, the Management Board and Supervisory Board have decided to hold a virtual general meeting while keeping the date already fixed last year. The entire Annual General Meeting will now be broadcasted live on the Internet exclusively for duly registered shareholders or their proxies. Due to current developments resulting from the Covid-19 crisis, the Management Board and Supervisory Board have amended the original profit appropriation decision for the 2019 financial year. The executive bodies will propose to the Annual General Meeting on May 26, 2020 that no dividend will be paid for the 2019 financial year and that the net retained earnings will be carried forward in full to new account. A resolution to this effect was passed during a telephone meeting of OHB SE's Supervisory Board on April 28. Given that it is not yet possible to assess the effects of the crisis with sufficient precision, avoiding the outflow of liquidity in the amount of the originally planned dividend payment of around EUR 7.5 million is a key component in allowing OHB SE to respond flexibly to current developments.
| Date | Bank | Target price in EUR | Recommendation |
|---|---|---|---|
| May 2020 | Pareto Securities | 49.00 | buy |
| May 2020 | Bankhaus Lampe | 46.00 | buy |
| May 2020 | Commerzbank | 32.00 | halten |
| April 2020 | DZ Bank | 43.00 | buy |
| April 2020 | HSBC Trinkaus&Burkhardt | 38.00 | halten |
from 05 / 01 / 2019 through 05 / 07 / 2020
Right at the beginning of the year, representatives of the company took part in a major capital market conference in Frankfurt and presented the company to potential investors in various discussions. As usual, OHB SE's Management Board members gave an initial outlook on the current fiscal year at the Capital Market Day, which was hosted in Bremen this year. On February 13, analysts, investors and bank representatives gathered here and were informed by the speakers about the corporate strategy "OHB 2025 – Shaping the future" as well as about the status of current projects and new market developments. The Company published its consolidated financial statements for 2019 on March 18, 2020, on which date it first held a telephone press conference attended by various media representatives, followed by a separate conference call to discuss the results with analysts.
| EUR 000 | Q1/2020 | Q1/2019 |
|---|---|---|
| High, Xetra | 45.15 | 36.50 |
| Low, Xetra | 25.65 | 29.60 |
| Closing price, Xetra (final trading day of the period) |
32.00 | 36.00 |
| Average daily trading volumes (XETRA + floor) |
22,838 | 4,000 |
| Market capitalisation, Xetra (final trading day of the period) |
559 Mio. | 629 Mio. |
| Number of shares | 17,468,096 | 17,468,096 |
| EUR 000 | Shares | Change |
|---|---|---|
| Christa Fuchs, member of the Supervisory Board |
1,401,940 | - |
| Professor Heinz Stoewer, member of the Supervisory Board |
1,000 | - |
| Marco R. Fuchs, chairman of the Management Board |
6,046,610 | - |
| Dr. Lutz Bertling, member of the Management Board |
14,500 | - |
STRATEGY
At the Capital market day on the 13th of February, OHB's Chief Executive Officer; Marco Fuchs, and Chief Strategy&Development Officer; Dr. Lutz Bertling, presented some insights into the OHB SE corporate strategy "OHB 2025 – Shaping the future". After having reached the objectives of its strategy 2020 already in 2019, OHB group developed its next five year strategic roadmap a year earlier than expected. The new, encompassing corporate strategy aims to give direction and guidance for the business strategy of the different subsidiaries as well as implement unifying measures for the group. Each daughter subsidiary is currently defining its new business strategy 2025 and will derive operational objectives and measures as well as budget plans. The strategy will be periodically updated as changes in the market, competitive environment and global mega-trends necessitate updates. The strategic objectives outlined here were defined before the COVID-19 pandemic, and update is therefore planned for autumn 2020.
The strategy concludes that the future for space based solutions remains bright as such solutions can and will be used in an increasing level to tackle many critical societal challenges facing the world today (figure 1). OHB is positioned very well to take care of the opportunities resulting out of the immediate need for these solutions. For example the upcoming Copernicus missions foresee the monitoring of emissions, allowing their management to meet climate goals. OHB is very well positioned to have a leading role in one or several of these missions.
A key element of OHB 2025 was the definition of major growth and thus development areas for the group (2).
Within the Space Systems business segment, OHB aims to extend its capability to deliver turn-key end-to-end systems to its customers, managing the complex process from mission conception to delivery in orbit and operations. In continuation of its growth story, OHB will continue to enter into new domains and customer groups, thus widening its accessible markets.
For the Aerospace&Industrial Products business segment, OHB's objective is to evolve from being a sub-system supplier to a prime contractor for a micro-launcher. In addition, the cutting-edge manufacturing and design competencies from MT Aerospace will be further developed to be able to supply to a wide range of launchers and aerospace products on global markets.
In addition to OHB's current activities within the space systems and launcher domain, OHB aims to significantly grow into the domain of applications and services resulting from space technologies and data. For this purpose OHB will create a new business area called OHB Digital in 2020, being focused on our activities in the area of applications and services. The creation of this business unit pools the knowledge already available in the Group and opens access to synergies.
| Overpopulation | Precision farming and fishing | |||
|---|---|---|---|---|
| Emissions&climate change | Tracking of emissions and their consequences, development of models |
|||
| Challenges | Deforestation | detections of illegal activities and monitor ing of ecosystem vitality |
Solutions | |
| Natural disasters and security related complex threat scenarios |
Monitoring of affected areas, coordination of crisis response |
|||
| Digitalization | Internet of Things, autonomous systems, data security and global coverage |
The new company called Digital Connect has been founded as part of the OHB Digital Business Area, which merges several current companies and departments working on ground based solutions and services. OHB aims to grow the OHB Digital business area of the group to a significant sales and profit center within the next years. This growth will be realized not only organically within the current organization but also inorganically through acquisitions and/or investments by the subsidiary OHB Venture Capital.
Overarching to all domains, OHB SE as a holding wants to implement unifying measures in an initiative called One.OHB. This aims at increasing synergies that companies in the group can achieve and to further improve the cooperation between companies within the group. To this goal, several group functions will be created aimed to implement unifying measures such as implementing competence centers.
| Scope | ∙ Offer space systems A – Z ∙ Develop downstream applications portfolio ∙ Extend satellites and systems portfolio ∙ Extend rocket customer base, full launcher |
∙ Organic and inorganic growth ∙ M&A focus on software solutions based on data generated by space systems |
Growth |
|---|---|---|---|
| Performance | ∙ Improve product quality and project management ∙ Reliable delivery with regard to time, cost, requirements |
OHB Strategy 2025 ∙ Total Revenues of EUR 1,500 million ∙ EBIT-margin on total revenues ≥ 8% ∙ average Free cash flow ≥ EBIT |
Financial |
| &Peo ple Culture |
∙ Foster OHB culture: Get things done together, entrepreneurship ∙ Top ten attractive employer |
∙ Use synergies ∙ Streamline product portfolio ∙ Group functions&competence centers |
Alignment |
Business Bridge Conference on European Space in Brussels
Summit of the world market leaders in Schwäbisch Hall
Capital Market Day in Bremen
German-Greek Economic Forum in Berlin
(2)
At EUR 141.8 million, non-consolidated total revenues in the Space Systems business segment were down slightly on the first three months of the previous year (EUR 146.3 million). The lower total revenues nevertheless resulted in a substantially higher operating result (EBITDA) of EUR 17.2 million (previous year: EUR 14.8 million). At EUR 10.8 million, the segment's EBIT was also up on the previous year's figure of EUR 9.3 million, despite increased depreciation and amortization. The EBIT margin in relation to unconsolidated total revenues thus increased significantly from 6.3% in the previous year to 7.6% in the reporting period.
Artist's impression of the Heinrich Hertz satellite, which is based on the telecommunications platform SmallGEO developed by OHB System
CHIARA PEDERSOLI TO JOIN THE MAN-AGEMENT BOARD OF OHB SYSTEM AG
The Supervisory Board of OHB System appointed Chiara Pedersoli to the Management Board of OHB System AG effective January 1, 2020. In this position, she has since been responsible for the "Engineering and AIT (Assembly, Integration and Test)" unit, in which she previously held a management position. The unit has a total of just under 1,000 employees at the Bremen and Oberpfaffenhofen locations. Before joining OHB System AG in 2010, Chiara Pedersoli gained experience with institutional and commercial customers.
The Heinrich Hertz mission has several ambitious goals. One of them is to test new technologies for satellite communication for their space capability. Around 20 experiments on communications, antenna and satellite technology will also be carried out on board the Heinrich Hertz satellite. The experiments were developed and built by scientific institutes and industrial companies, which will use them to test new communication services. The Heinrich Hertz project also aims to maintain and expand the ability of German industry to independently design, build and launch communications satellite systems and platforms (system capability).
OHB System AG, which is performing this mission as the prime contractor for the customer DLR Space Management, has now reached the crucial design review stage (System Critical Design Review). Positive signals are coming from the first co-location. Completion is planned for Q3 2020. Good progress can also be reported in the integration of the system: the propulsion module for the satellite has been prefabricated and delivered for further processing. Similarly, the pre-integration of the payload module is almost complete, so that it can be fitted with the payload components and tested in mid-2020.
Subcontractor in this program is the subsidiary MT Mechatronics GmbH that has supplied the first antenna (13 m diameter) for the Heinrich Hertz satellite communication mission. A total of five antennas are being manufactured for the mission's ground segment. These will allow the Heinrich Hertz satellite to be controlled, the experiments to be executed and monitored and the communication payloads to be used on board the satellite.
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Artist's impression of the PLATO satellite
PLATO (Planetary Transits and Oscillations of Stars) is a satellite-based observatory for use in space to detect and explore exoplanets (planets in other solar systems). OHB System is the prime contractor for this ESA mission, the aim of which is to answer the following questions, among others: What properties do Earth-like planets have in the habitable zone of the stars? How do they form and change over time? Is our solar system unique? Could there be life in other solar systems?
The test model for the critical technical performance was completed and successfully tested in fiscal 2019. This confirms the feasibility of the design. The development of the satellite is proceeding according to plan, with the Preliminary Design Review successfully completed in March 2020. The satellite is scheduled for launch in 2026.
On February 6, 2020, MT Mechatronics GmbH (MTM) set a further milestone in the completion of the 40-meter radio telescope for the National Astronomical Research Institute of Thailand (NARIT) with the Big Lift in Chiang Mai, Thailand. In the Big Lift, the 250-ton reflector was lifted onto the steel substructure. The radio telescope is a so-called Turning Head model and is equipped with a rotating reflector. It operates in the frequency range 5 to 100 gigahertz (GHz). Completion of the telescope and handover to NARIT are scheduled for the end of June 2020. The total order volume amounts to EUR 12 million. Besides the 40-meter telescope of the Instituto Geográfico Nacional in Spain, which was also supplied by MTM, the radio telescope will be one of the largest and most powerful of its kind.
In 2018, OHB Italia signed a contract with the Luxembourg government for the realization of the NAOS earth observation mission. The optical satellite will have a very high-resolution imaging system and a payload with panchromatic and multispectral cameras. In the past quarter, OHB Italia reached a key milestone in the program on schedule: the successful completion of the critical design review (CDR) for the system's ground segment.
The satellite, which is designed for government and military purposes, will provide global coverage and be able to take more than one hundred images a day. By collecting satellite data, Luxembourg intends to participate more actively in NATO's defence efforts.
Solar Orbiter, the new ESA Sun Explorer, developed in collaboration with NASA, was launched from Cape Canaveral on February 10 at 05.03 CET. Solar Orbiter is the first mission to operate in extreme environments up to 500C° and will provide images of the solar poles at high latitudes and study magnetic fields, solar wind and space weather. The spacecraft will take two years to reach the sun. Solar Orbiter is equipped with ten state-of-the-art technological instruments. One of them is the coronagraph METIS (Multi Element Telescope for Imaging and Spectroscopy), which was realized by OHB Italia SpA. It will observe the structure and dynamics of the full corona, the outer atmosphere of the sun, with unprecedented temporal coverage and spatial resolution. This region is crucial for a better understanding of the atmospheric phenomena of the Sun and their evolution in the inner heliosphere. OHB Sweden has supplied the propulsion subsystem and important parts of the attitude control subsystem to the main contractor Airbus Defence and Space, UK
At the end of March 2020, an Italian consortium led by the Italian Space Agency (ASI) delivered the payload for the NASA mission IXPE to the NASA Marshall Space Flight Center and Ball Aerospace. The Imaging X-ray Polarimetry Explorer (IXPE) uses the polarization state of light from astrophysical sources to gain insights into our understanding of X-ray generation in objects such as neutron stars and pulsar wind nebulae, as well as in stellar and supermassive black holes. The mission will be launched in spring 2021 with a Falcon 9 rocket into a circular low Earth orbit. As an industrial partner, OHB Italia has provided parts of the instrument: the detector unit electronics and the multi-functional Filter Calibration Wheel for in-flight calibration tests.
A contribution made by OHB Italia to the instrument of the NASA IXPE mission: the filter calibration wheel
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3-MONTHS INTERIM REPORT
The unconsolidated total revenues of the business segment Aerospace + Industrial Products amounted to EUR 43.2 million in the first three months of the business year 2020 and were thus below the previous year's value of EUR 46.0 million. The operating result (EBITDA) for this business segment amounted to EUR 2.2 million and thus decreased significantly compared to the previous year (EUR 4.5 million). Due to increased depreciation and amortization, EBIT fell significantly from EUR 2.9 million in the previous year to EUR 0.4 million. The EBIT margin in relation to unconsolidated total revenues thus only reached 1.0 %, compared to 6.2 % in the previous year.
Artist's view of four Galileo satellites mounted on top of a specially adapted Ariane 5 rocket underneath the aerodynamic fairing. © ESA
The Supervisory Board of MT Aerospace AG has appointed Ulrich Scheib to the Management Board with effect from April 1, 2020. Within the Management Board of MT Aerospace AG, Ulrich Scheib will be responsible for program management, sales, the Kourou business and the new topics for future growth. Ulrich Scheib joined the company in October 2015 and was most recently responsible as Director for Space Programs, Business Development and Strategy.
modular European Ariane 6 launcher. The future launcher system will replace the Ariane 5 launcher currently in use and will also be launched from the European Spaceport in Kourou. In the first quarter, the first test rig component for the Ariane 6 upper stage structure qualification test arrived at the IMA Materialforschung und Anwendungstechnik GmbH test center in Dresden and was successfully approved. After setting up further structures, the upper level structure qualification test model can be integrated within a few months and will then be tested and qualified after a successful Test Readiness Review (TRR).
The Ariane 6 program of the European Space Agency ESA is a family of launchers designed to offer maximum flexibility to customers in the institutional and commercial markets. It will be able to launch payloads into an optimized orbit – regardless of the type of mission: low orbit (LEO), geostationary transfer orbit (GTO) or sun-synchronous orbit (SSO). The rocket can perform classic single or dual launches as well as complex missions that meet the new market requirements, such as the launch of electrically powered satellites or multiple launches of constellation satellites.
Ulrich Scheib studied economics at the Technical University of Berlin and holds a Master in Management from ESC Toulouse. Born in Stuttgart, he brings with him 20 years of management experience in various international management functions. Ulrich Scheib began his career with the Airbus Group in France. Before joining the OHB Group, he was Managing Director of RST Rostock, a supplier to the aerospace industry.
3-MONTHS INTERIM REPORT
(2)
MT Aerospace AG is responsible for the development and production of the tanks and structures for this launcher. With a delivery share of just under 11 percent, the company is the largest supplier under the prime contractor Ariane-Group.
(3)
| EUR 000 | Q1/2020 | Q1/2019 |
|---|---|---|
| 1. Sales | 175,007 | 182,438 |
| 2. Total revenues | 184,156 | 190,945 |
| 3. EBITDA | 19,271 | 19,500 |
| 4. EBIT | 11,094 | 12,358 |
| 5. EBT | 9,777 | 11,908 |
| 6. Share of OHB SE shareholders in net profit for the year | 6,216 | 7,232 |
| 7. Earnings per share (EUR) | 0.36 | 0.42 |
| 8. Total assets as of March 31 | 966,667 | 842,060 |
| 9. Equity as of March 31 | 204,120 | 204,264 |
| 10. Cash flow used in operating activities | −50,359 | −50,022 |
| 11. Equity investments | 1,703,216 | 2,286,331 |
| 12. Headcount as of March 31 | 2,970 | 2,797 |
| 13. Free Cashflow | −53,606 | −53,087 |
| 14. Net debt including pension provisions | 191,768 | 162,697 |
| 15. Net debt excluding pension provisionsn | 84,494 | 63,869 |
| 16. CAPEX | 3,530 | 3,499 |
| 17. Own work capitalized (additions) | 1,374 | 3,292 |
| 18. Return on Capital Employed (ROCE) | 12% | 14% |
The OHB Group's total revenues are heavily dependent on performance milestones and delivery dates in the respective projects and are therefore not linear in nature. At the end of the first three months, total revenues came to EUR 184.2 million, down on the previous year (previous year: EUR 190.9 million).
The operating result (EBITDA) declined slightly from around EUR 19.5 million in the previous year to EUR 19.3 million. The operating EBITDA margin thus rose to 10.5% in the reporting period, compared to 10.2% in the same period of the previous year. EBIT declined to EUR 11.1 million in the first three months of the current financial year, after EUR 12.4 million in the previous year. As a result, the corresponding EBIT margin dropped to 6.0 %, after 6.5 % in the same period of the previous year. The EBIT margin on own value added changed to 8.7% (previous year: 10.2%).
The financial result of EUR −1.3 million declined year-onyear, partly due to currency losses (previous year: EUR −0.5 million). Earnings before taxes (EBT) decreased by 18 % to EUR 9.8 million after the first three months of 2020 (previous year: EUR 11.9 million). Income taxes in the amount of EUR 3.3 million (previous year: EUR 3.9 million) resulted in a consolidated net income for the period of EUR 6.5 million in the 2020 reporting period, which was 19% lower than in the previous year (EUR 8.0 million).
The cash flow, which is regularly very volatile even during the course of the year, is a characteristic feature of OHB's business model but is sufficiently predictable. After the first three months of the fiscal year, this key figure was virtually unchanged over the previous year (EUR −50.0 million) as planned, with net cash used in operating activities coming to EUR 50.4 million. Cash flow from financing activities in the amount of EUR 85.2 million was higher than in the same
period of the previous year (EUR 64.2 million) due to the scheduled higher borrowing of financial loans and resulted in cash and cash equivalents of EUR 116.5 million at the end of the reporting period (previous year: EUR 60.0 million).
The Group's firm order backlog stood at EUR 1,703 million at the end of the first three months of fiscal 2020, down from EUR 1,840 million on December 31, 2019, of which OHB System AG accounted for almost 79 % at EUR 1,344 million. As of March 31, 2020, the OHB Group's total assets came to EUR 966.7 million, up 4 % on the figure of EUR 931.0 million recorded as of December 31, 2019. The slight increase in equity from EUR 200.8 million to EUR 204.1 million was disproportionately lower than the increase in total assets, resulting in an equity ratio of 21.1 % as of March 31, 2020, up from 21.6 % as of December 31, 2019.
| in EUR | Q1/2020 | Q1/2019 |
|---|---|---|
| Space industry | 165,164 | 173,258 |
| Aviation | 3,805 | 3,976 |
| Antennen | 3,363 | 2,800 |
| Others | 2,675 | 2,404 |
| Gesamt | 175,007 | 182,438 |
| in EUR | Q1/2020 | Q1/2019 |
|---|---|---|
| Germany | 56,397 | 59,421 |
| Rest of Europe | 114,477 | 120,178 |
| Rest of World | 4,133 | 2,839 |
| Total | 175,007 | 182,438 |
Rest of the world Europe without Germany Germany
Holding Aerospace + Industrial Products Space Systems
Research and development expenses decreased to EUR 2.6 million in the first three months of 2020, down from EUR 5.1 million in the same period of the previous year.
Investments in fixed assets in the first three months of 2020 were at EUR 3.5 million, exactly the same level as the previous year (EUR 3.5 million).
The OHB Group's headcount increased by 37 employees over the balance sheet date on December 31, 2019 (2,933 employees) to 2,970 as of March 31, 2020. The figures given for "Other World" comprise 43 people employed in Chile and 60 in French Guiana.
The opportunities and risks report in the Annual Report for 2019 contains detailed information on opportunities and risks that could influence the success of the business. The pandemic (Covid-19) that arose during the first quarter of 2020 is already addressed there, but at the time the Risk Report for 2019 was prepared, the further course of the crisis, in particular its duration, could not yet be foreseen. On the basis of the information currently available, OHB SE's Management Board assumes that the current situation will not result in any risks to the Group as a going concern. There is a risk in delayed project deliveries which may result in a postponement of revenues to subsequent periods. A further risk is the possible postponement of orders on the customer side, so that orders originally expected to be received in fiscal year 2020 may not be realized until fiscal year 2021. OHB SE's Management Board is constantly monitoring and evaluating current developments in connection with Covid-19 and taking appropriate measures to minimize the effects on the Company's net assets, financial condition and results of operations.
During the Capital Market Day on 13 February 2020, the Management Board issued the following guidance for the 2020 financial year: The OHB Group's consolidated total revenues are to amount to EUR 1.1 billion, with EBITDA and EBIT expected to reach EUR 80 million and EUR 44 million, respectively. At present, it is not yet possible to foresee if the actual results at the end of the year will or will not deviate from our plans and expectations from February. For this reason, we can neither confirm nor withdraw the guidance today for the key performance indicators total revenues, EBITDA and EBIT for the 2020 financial year.
| EUR 000 | Q1/2020 | Q1/2019 |
|---|---|---|
| Sales | 175,007 | 182,438 |
| Changes in inventories of finished goods and work in progress | 5,696 | 2,015 |
| Other own work capitalised | 1,586 | 3,446 |
| Other operating income | 1,867 | 3,046 |
| Total revenues | 184,156 | 190,945 |
| Cost of materials | 91,888 | 99,888 |
| Staff costs | 59,605 | 59,252 |
| Amortization of intangible assets and property, plant and equipment | 8,177 | 7,142 |
| Impairment income/expenses | −15 | −26 |
| Other operating expenses | 13,407 | 12,331 |
| Earnings before interest and taxes (EBIT) | 11,094 | 12,358 |
| Interest and similar income | 283 | 353 |
| Interest and other financial expenses | 1,491 | 1,354 |
| Currency translation gains /losses | −109 | 385 |
| Results from at-equity consolidated affiliates | 0 | 0 |
| Result from affiliated companies | 0 | 166 |
| Net finance expense | −1,317 | −450 |
| Earnings before taxes (EBT) | 9,777 | 11,908 |
| Income taxes | 3,280 | 3,934 |
| Consolidated net profit for the period | 6,497 | 7,974 |
| Share of OHB SE shareholders in net profit for the period | 6,216 | 7,232 |
| Minority interests | 281 | 742 |
| Number of shares excl. own shares | 17,400,100 | 17,400,100 |
| Earnings per share (basic in EUR) | 0.36 | 0.42 |
| Earnings per share (diluted in EUR) | 0.36 | 0.42 |
| EUR 000 | Q1/2020 | Q1/2019 |
|---|---|---|
| Consolidated net profit for the period | 6,497 | 7,974 |
| Remeasurement of defined benefit pension plans | 216 | 0 |
| Remeasurement of defined benefit plans of associated companies | 0 | 0 |
| Fair value remeasurement of financial assets | −3,378 | −2,585 |
| Items that will not be reclassified to profit and loss | −3,162 | −2,585 |
| Exchange differences on translation foreign operations | −28 | 189 |
| Exchange differences of associated companies | 0 | 0 |
| Cashflow Hedges | −17 | −116 |
| Cash flow hedges of associated companies | 0 | 0 |
| Items which may be subsequently reclassified to profit and loss | −45 | 73 |
| Other comprehensive income after tax | −3,207 | −2,512 |
| Comprehensive income | 3,290 | 5,462 |
| Of which attributable to | ||
| equity holders of OHB SE | 3,014 | 4,683 |
| other equity holders | 276 | 779 |
| EUR 000 | 31/03/2020 | 31/12/2019 |
|---|---|---|
| ** | ||
| Goodwill | 7,366 | 7,366 |
| Other intangible assets | 114,728 | 116,309 |
| Nutzungsrechte aus Leasingvereinbarungen | 53,526 | 54,878 |
| Property, plant and equipment | 96,133 | 95,440 |
| Shares carried at equity | 0 | 0 |
| Other financial assets | 22,029 | 25,112 |
| Other long-term receivables and assets | 30,634 | 30,491 |
| Deferred taxes | 20,446 | 19,029 |
| Long-term assets | 344,862 | 348,625 |
| Inventories | 57,265 | 53,302 |
| Trade receivables | 83,029 | 92,469 |
| Other non-financial assets | 345,913 | 324,228 |
| Tax receivables | 4,113 | 4,394 |
| Other non-financial assets | 14,542 | 22,463 |
| Securities | 405 | 448 |
| Cash and cash equivalents | 116,538 | 85,090 |
| Current assets | 621,805 | 582,394 |
| Total assets | 966,667 | 931,019 |
| 25 | |
|---|---|
| EUR 000 | 31/03/2020 | 31/12/2019 |
|---|---|---|
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||
| Subscribed capital | 17,468 | 17,468 |
| Additional paid-in capital | 15,778 | 15,778 |
| Retained earnings | 521 | 521 |
| Unrealised gains and loss recognised under equity | −24,883 | −21,681 |
| Treasury stock | −710 | −710 |
| Consolidated profit | 176,537 | 170,321 |
| Shareholders' equity excluding minority interests | 184,711 | 181,697 |
| Minority interests | 19,409 | 19,133 |
| Shareholders' equity | 204,120 | 200,830 |
| Provisions for pensions and similar obligations | 107,274 | 108,252 |
| Non-current other provisions | 2,813 | 3,310 |
| Non-current financial liabilities | 20,415 | 23,749 |
| Leasingverbindlichkeiten | 41,494 | 42,561 |
| Non-current advance payments received on orders | 13,260 | 8,032 |
| Deferred income tax liabilities | 39,319 | 38,319 |
| Non-current liabilities and provisions | 224,575 | 224,223 |
| Current provisions | 44,379 | 31,168 |
| Current financial liabilities | 180,617 | 88,254 |
| Leasing liabilities | 12,640 | 12,891 |
| Trade payables | 84,860 | 166,651 |
| Vertragsverbindlichkeiten | 170,727 | 155,725 |
| Income tax liabilities | 4,700 | 10,355 |
| Other financial and non-financial liabilities | 40,049 | 40,922 |
| Current liabilities | 537,972 | 505,966 |
| Total equity and liabilities | 966,667 | 931,019 |
| EUR 000 | Q1/2020 | Q1/2019 |
|---|---|---|
| Earnings before interest and taxes (EBIT) | 11,094 | 12,358 |
| Income taxes paid | −9,014 | −7,727 |
| Depreciation/amortisation of intangible assets and property, plant and equipment | 8,177 | 7,142 |
| Changes in pension provisions | −763 | −1,192 |
| Profit (-)/loss (+) from the disposal of assets | 43 | 17 |
| Gross cash flow | 9,537 | 10,598 |
| Increase (–)/decrease (+) in own work capitalised | −1,374 | −3,292 |
| Increase (–)/decrease (+) in inventories | −3,963 | −6,254 |
| Increase (–)/decrease (+) in receivables and other assets including deferred items | −4,838 | −11,131 |
| Increase (+)/decrease (–) in liabilities and current provisions | −69,952 | −77,986 |
| Increase (+)/decrease (–) in prepayments received | 20,231 | 38,043 |
| Cash outflow for operating activities | −50,359 | −50,022 |
| Payments made for investments in non-current assets | −3,530 | −3,499 |
| Scope of consolidation-related changes in cash and cash equivalents | 0 | 142 |
| Interest received | 283 | 292 |
| Cash outflow for investing activities | −3,247 | −3,065 |
| Payments made for the settlement of leasing liabilities | −3,674 | −32 |
| Payment made for the settlement of financial liabilities | −2,776 | −2,323 |
| Proceeds from borrowings | 92,703 | 67,957 |
| Minority interests | 0 | −900 |
| Interest and other finance expense | −1,094 | −508 |
| Cash inflow from financing activities | 85,159 | 64,194 |
| Cash changes to cash and cash equivalents | 31,553 | 11,107 |
| Currency-translation-related changes to cash and cash equivalents | −105 | 589 |
| Cash and cash equivalents at the beginning of the period | 85,090 | 48,316 |
| Cash and cash equivalents at the end of the period | 116,538 | 60,012 |
| EUR 000 | Sub scribed capital |
Share premium |
Retained earnings |
Unreal ised gains and losses recog nised under equity |
Consoli dated profit |
Treasury stock |
Share holders' equity exclud ing minority interests |
Minority interests |
Total equity |
|---|---|---|---|---|---|---|---|---|---|
| Balance on 31/12/2018 |
17,468 | 15,462 | 521 | −7,747 | 152,315 | −710 | 177,309 | 22,710 | 200,019 |
| Consolidated comprehensive income |
0 | 0 | 0 | −2,549 | 7,232 | 0 | 4,683 | 779 | 5,462 |
| Changes to consol idated companies |
0 | 0 | 0 | 0 | −317 | 0 | −317 | 0 | −317 |
| Profit distributions to other shareholders |
0 | 0 | 0 | 0 | 0 | 0 | 0 | −900 | −900 |
| Balance on 31/03/2019 |
17,468 | 15,462 | 521 | −10,296 | 159,230 | −710 | 181,675 | 22,589 | 204,264 |
| Balance on 31/12/2019 |
17,468 | 15,778 | 521 | −21,681 | 170,321 | −710 | 181,697 | 19,133 | 200,830 |
| Consolidated comprehensive income |
0 | 0 | 0 | −3,202 | 6,216 | 0 | 3,014 | 276 | 3,290 |
| Balance on 31/03/2020 |
17,468 | 15,778 | 521 | −24,883 | 176,537 | −710 | 184,711 | 19,409 | 204,120 |
| Space Systems | Aerospace + Industrial Products | ||||
|---|---|---|---|---|---|
| EUR 000 | Q1/2020 | Q1/2019 | Q1/2020 | Q1/2019 | |
| Sales | 138,139 | 142,208 | 37,666 | 41,653 | |
| of which internal sales | 0 | 69 | 798 | 1,354 | |
| Total revenues | 141,800 | 146,318 | 43,167 | 46,025 | |
| Cost of materials and services purchased | 73,055 | 82,546 | 19,455 | 18,110 | |
| EBITDA | 17,202 | 14,802 | 2,160 | 4,460 | |
| Depreciation/amortisation | 6,426 | 5,532 | 1,732 | 1,597 | |
| EBIT | 10,776 | 9,270 | 428 | 2,863 | |
| EBIT margin | 7.6% | 6.3% | 1.0% | 6.2% | |
| Own value creation | 85,764 | 79,919 | 41,405 | 41,647 | |
| EBIT margin on own value creation | 12.6% | 11.6% | 1.0% | 6.9% |
OHB SE is a listed stock corporation domiciled in Germany. These consolidated financial statements for the interim reporting of OHB SE and its subsidiaries ("Group") for the first three months of fiscal 2020 were approved for publication in a resolution passed by the Management Board on May 12, 2020.
The interim consolidated financial statements of OHB SE comprise the following fully consolidated companies:
∙ MT Management Service GmbH, Augsburg
∙ MT Aerospace Grundstücks GmbH&Co. KG, Munich
The results of affiliated companies that are not fully consolidated are not taken into account during the year.
These unaudited consolidated interim financial statements for the interim report have been prepared in accordance with the International Financial Reporting Standards (IFRS) and the related interpretations of the International Accounting Standards Board (IASB) for interim reporting, as applicable in the European Union and the supplementary provisions of German commercial law pursuant to Section 315 a (1) of German Commercial Code. Accordingly, these interim financial statements do not contain all the information and notes required by IFRS for consolidated financial
| Total | Reconciliation | |||||
|---|---|---|---|---|---|---|
| Consolidation | Holding | |||||
| Q1/2019 | Q1/2020 | Q1/2019 | Q1/2020 | Q1/2019 | Q1/2020 | |
| 182,438 | 175,007 | −1,423 | −798 | 0 | 0 | |
| 0 | 0 | −1,423 | −798 | 0 | 0 | |
| 190,945 | 184,156 | −3,197 | −2,657 | 1,799 | 1,846 | |
| 99,888 | 91,888 | −768 | −622 | 0 | 0 | |
| 19,500 | 19,271 | 0 | 0 | 238 | −91 | |
| 7,142 | 8,177 | 0 | 0 | 13 | 19 | |
| 12,358 | 11,094 | 0 | 0 | 225 | −110 | |
| 6.5% | 6.0% | |||||
| 121,566 | 127,169 | |||||
| 10.2% | 8.7% | |||||
statements at the end of the fiscal year. In the opinion of the Management Board, these unaudited consolidated financial statements for the interim report contain all adjustments necessary for a true and fair view of the results of operations for the interim period. Results of the period ended March 31, 2020, are not necessarily indicative of future results. The preparation of consolidated interim financial statements in accordance with IAS 34 "Interim Financial Reporting" requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The actual amounts may differ from these estimates.
A tax rate of approximately 32 % is used as the basis for income taxes. Compared to the Annual Report 2019, no significant changes have been made to the basis of the estimates. A detailed description of the accounting policies is published in the notes to the consolidated financial statements in the 2019 Annual Report.
The interim report was neither audited in accordance with §317 HGB nor reviewed by an auditor.
"To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year."
Bremen, May 12, 2020
The Management Board
| Q1 /3-Month Interim Report / Analyst Conference Call |
May 12, 2020 |
|---|---|
| Virtuelle Hauptversammlung | May 26, 2020 |
| Q2/6-Month Interim Report/ Analyst Conference Call |
August 11, 2020 |
| Q3/9-Month Interim Report/ Analyst Conference Call |
November 12, 2020 |
| Deutsches Eigenkapitalforum, Frankfurt am Main |
November 16-18, 2020 |
OHB SE
Manfred-Fuchs-Platz 2−4 28359 Bremen, Germany Tel.: +49 (0)421 2020-7200 Fax: +49 (0)421 2020-613 [email protected] www.ohb.de
OHB – Official partner of Werder Bremen
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