OHB SE Releases Its 2019 Six-Month Interim Report

The OHB Group (ISIN: DE0005936124, Prime Standard) reported total revenue of EUR 425 million for the first six months, an increase of just over 5% compared to the same period last year (previous year: EUR 404.5 million). Operating profit (EBITDA) rose significantly from EUR 29.3 million in the prior year to EUR 36.0 million. Positive effects of approximately EUR 5.0 million resulting from the first-time application of IFRS 16 contributed to this increase. The operating EBITDA margin thus rose to 8.5% in the reporting period, compared to 7.3% in the comparable prior-year period. EBIT rose to EUR 21.7 million in the first six months of the current fiscal year, compared to EUR 21.0 million in the prior year. The corresponding EBIT margin remained virtually unchanged at 5.1% compared to the same period last year (5.2%). The EBIT margin on own value added decreased to 8.7% compared to the previous year (9.3%).

The financial result of EUR -2.2 million was slightly lower than in the same period of the previous year (EUR -2.0 million). Earnings before taxes (EBT) rose slightly to EUR 19.5 million after the first six months of 2019 (previous year: EUR 19.0 million). These figures, combined with slightly higher income and income taxes of EUR 6.5 million (previous year: EUR 6.2 million), resulted in consolidated net income of EUR 13.0 million (previous year: EUR 12.8 million).

The Space Systems division’s unconsolidated total revenue of EUR 338.8 million exceeded the level recorded in the first six months of the previous year (EUR 314.9 million). The increase in total revenue resulted in a significantly higher operating profit (EBITDA) of EUR 28.9 million (previous year: EUR 20.2 million). The segment’s EBIT of EUR 17.8 million was also significantly higher than the prior-year figure of EUR 14.7 million. The EBIT margin relative to unconsolidated total revenue thus increased from 4.7% in the prior year to 5.3% in the reporting period.

The unconsolidated total revenue of the Aerospace + Industrial Products division amounted to EUR 87.8 million in the first six months of fiscal year 2019, down from EUR 93.6 million in the prior-year period. Operating profit (EBITDA) for this division decreased to EUR 7.2 million compared to the prior-year period (EUR 9.2 million). Combined with increased depreciation and amortization, this led to a decrease in EBIT to EUR 3.9 million (previous year: EUR 6.4 million). The EBIT margin relative to unconsolidated total revenue thus reached 4.5%, down from 6.8% in the previous year.

The Group’s order backlog stood at EUR 2,063 million after the first six months of fiscal year 2019, compared with EUR 2,369 million in the prior year. Of this amount, EUR 1,655 million, or approximately 80%, is attributable to OHB System AG. As of June 30, 2019, the OHB Group’s total assets stood at EUR 879.1 million, an increase of just over 14% compared to December 31, 2018 (EUR 753.6 million), due in part to the first-time application of IFRS 16. Key drivers of this development are the items newly included in the balance sheet: right-of-use assets from lease agreements on the asset side amounting to EUR 55.6 million, and on the liability side, current and non-current lease liabilities totaling EUR 55.9 million. The slight increase in equity from EUR 200.0 million to EUR 202.4 million was disproportionately smaller than the balance sheet growth and resulted in an equity ratio of 23.0% as of June 30, 2019, down from 26.5% at the end of the year on December 31, 2018.

At the end of the reporting period, cash and cash equivalents stood at EUR 30.0 million, significantly below the exceptionally high figure from the previous year (EUR 90.8 million).

The Executive Board expects the OHB Group’s consolidated total revenue for the 2019 fiscal year to reach EUR 1.05 billion. The operating profit metrics EBITDA and EBIT are expected to reach EUR 80 million and EUR 50 million, respectively, in 2019. Given the high order backlog and the positive outlook for the current fiscal year, the Executive Board expects the financial and asset position to continue to develop favorably.