OHB SE Releases Its 2018 Six-Month Interim Report

The OHB Group (ISIN: DE0005936124, Prime Standard) reported a significant increase in total revenue after six months to EUR 404.5 million, up by just over 14% compared with the same period last year (previous year: EUR 354.2 million).

Operating profit (EBITDA) rose to EUR 29.3 million (previous year: EUR 25.8 million). At 7.2% after the first six months of 2018, the operating EBITDA margin remained virtually unchanged from the comparable period of the previous year, which stood at around 7.3%. Despite higher depreciation and amortization expenses of EUR 8.3 million in the current fiscal year, compared to EUR 6.5 million in the prior year, EBIT rose to EUR 21.0 million from EUR 19.3 million in the prior year. The corresponding EBIT margin declined slightly to 5.2% (5.4% in the prior year). However, the EBIT margin on own value added increased significantly, reaching 9.3% in the first half of 2018, compared to 8.7% in the prior year. Earnings before taxes (EBT) rose slightly to EUR 19.0 million after the first six months of 2018 (prior year: EUR 17.8 million). Despite higher income and income taxes totaling EUR 6.2 million (previous year: EUR 5.7 million) in the 2018 reporting period, the Group achieved a slightly improved net income for the period of EUR 12.8 million (previous year: EUR 12.1 million).

At EUR 314.9 million, theSpace Systemsdivision’s unconsolidated total revenue significantly exceeded the figure of EUR 261.4 million for the first six months of the previous year. The increase in total revenue resulted in higher operating profit (EBITDA) of EUR 20.2 million, compared with EUR 15.1 million in the prior year. Despite higher depreciation and amortization, the segment’s EBIT of EUR 14.7 million was also above the prior-year level of EUR 11.2 million. The EBIT margin relative to unconsolidated total revenue rose slightly to 4.7% from 4.3% in the prior year.

The unconsolidated total revenue of theAerospace + Industrial Productsdivision amounted to EUR 93.6 million in the first six months of fiscal year 2018 (previous year: EUR 98.4 million), a decrease of just under 5% compared with the same period of the previous year. Expenses for materials and purchased services, which were approximately 12% lower in the reporting period, amounted to EUR 41.0 million, compared to EUR 46.7 million in the prior year. Nevertheless, this resulted in a slight decline in operating profit (EBITDA) to EUR 9.2 million, compared to EUR 10.7 million in the prior year. The segment’s lower EBIT of EUR 6.4 million (previous year: EUR 8.1 million) was impacted by increased depreciation and amortization. The EBIT margin relative to total revenue reached 6.8% compared to 8.2% in the previous year.

The Group’s order backlog stood at EUR 2,369 million after the first six months of fiscal year 2018, compared with EUR 2,220 million in the same period of the previous year. Of this amount, EUR 1,956 million, or approximately 83%, is attributable to OHB System AG.

At the end of the reporting period, cash and cash equivalents (excluding securities) stood at EUR 90.8 million, significantly higher than the previous year’s figure (EUR 36.4 million). As of June 30, 2018, the OHB Group’s total assets stood at EUR 763.7 million, approximately 6% higher than the level as of December 31, 2017 (EUR 719.7 million). The approximately EUR 21 million decrease in consolidated equity, resulting from the replacement of the previous accounting standards IAS 11 (Construction Contracts) and IAS 18 (Revenue) with the new provisions under IFRS 15 (Revenue from Contracts with Customers) effective in 2018, resulted in an equity ratio of 24.4% as of June 30, 2018, compared to 28.8% at the end of the year on December 31, 2017.

The Executive Board expects the OHB Group’s consolidated total revenue for the 2018 fiscal year to reach EUR 1,000 million. The operating profit metrics EBITDA and EBIT are expected to reach EUR 65 million and EUR 47 million, respectively, in 2018. Given the high order backlog and the positive outlook for the current fiscal year, the Executive Board expects the Group’s financial and asset position to continue to develop favorably.