OHB SE Releases Its 2018 Nine-Month Interim Report

The OHB Group’s (Prime Standard, ISIN: DE0005936124) total revenue reached EUR 633.7 million after nine months, an increase of just over 17% compared with the same period last year (previous year: EUR 541.0 million).

Operating profit (EBITDA) rose to EUR 47.1 million (previous year: EUR 41.6 million). The operating EBITDA margin stabilized at 7.4% after nine months, matching the prior-year level (7.7%). Despite higher depreciation and amortization of EUR 12.7 million in the current fiscal year compared to EUR 9.9 million in the prior year, EBIT rose to EUR 34.4 million from EUR 31.7 million in the prior year. By contrast, the corresponding EBIT margin of 5.4% was below the prior-year level (5.9%). Earnings before taxes (EBT) for the first nine months of 2018 increased to EUR 31.7 million (prior-year figure: EUR 29.6 million). Higher income and income taxes of EUR 10.8 million (previous year: EUR 8.9 million) in the 2018 reporting period resulted in a slightly improved consolidated net income of EUR 21.0 million (previous year: EUR 20.6 million).

At EUR 498.6 million, theSpace Systemsdivision’s unconsolidated total revenue significantly exceeded the figure for the first nine months of the previous year, which was EUR 404.0 million. The increase in total revenue resulted in an equally significant increase in operating profit (EBITDA) to EUR 31.4 million (previous year: EUR 24.4 million). Despite higher depreciation and amortization, the segment’s EBIT of EUR 23.1 million also exceeded the prior-year figure of EUR 18.5 million. The EBIT margin relative to unconsolidated total revenue stabilized at the prior-year level, reaching 4.6%.

The unconsolidated total revenue of theAerospace + Industrial Productsdivision reached EUR 140.6 million in the first nine months of fiscal year 2018 (previous year: EUR 145.2 million), remaining virtually unchanged from the previous year. Expenses for materials and purchased services, which were approximately 14% lower in the reporting period, amounted to EUR 58.4 million, compared to EUR 67.8 million in the prior year. Overall, the operating result (EBITDA) of EUR 15.6 million was slightly lower (prior year: EUR 17.2 million). Accordingly, the segment’s EBIT was lower at EUR 11.3 million (previous year: EUR 13.3 million). The EBIT margin relative to total unconsolidated revenue reached 8.1% after 9.1% in the previous year.

The Group’s order backlog reached EUR 2,408 million after nine months of fiscal year 2018, up from EUR 2,049 million in the same period of the previous year. Of this amount, EUR 1,857 million—or just over 77%—is attributable to OHB System AG.

At the end of the reporting period, cash and cash equivalents (excluding securities) rose to EUR 66.0 million from EUR 45.1 million in the same period of the previous year.

As of September 30, 2018, the OHB Group’s total assets stood at EUR 756.4 million, an increase of EUR 36.7 million—or approximately 5%—compared to December 31, 2017 (EUR 719.7 million). Equity in the Group increased by EUR 15.8 million to EUR 199.4 million. At the beginning of 2018, equity had been revalued on a one-time basis due to 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), the equity ratio rose again to 26.4% as of September 30, 2018, driven by the increase from operating activities.

The Executive Board expects the OHB Group’s consolidated total revenue for the 2018 fiscal year to amount to 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 financial and asset position to continue to develop favorably.