OHB SE Releases Its 2019 Nine-Month Interim Report

The OHB Group (ISIN: DE0005936124, Prime Standard) reported total revenue of EUR 659 million for the first nine months, an increase of just over 4% compared with the same period last year (previous year: EUR 634 million). Operating profit (EBITDA) rose significantly from EUR 47.1 million in the prior year to EUR 57.9 million. Positive effects of approximately EUR 7.6 million resulting from the first-time application of IFRS 16 contributed to this increase. The operating EBITDA margin thus rose to 8.8% in the reporting period, compared to 7.4% in the comparable prior-year period. EBIT rose to EUR 36.2 million in the first nine months of the current fiscal year, compared to EUR 34.4 million in the prior year. The corresponding EBIT margin remained virtually unchanged at 5.5% compared to the same period last year (5.4%). The EBIT margin on own value added decreased to 9.7% compared to the previous year (10.1%).

The financial result of EUR -3.1 million was slightly lower than in the same period of the previous year (EUR -2.7 million). Earnings before taxes (EBT) rose slightly to EUR 33.0 million after the first nine months of 2019 (previous year: EUR 31.7 million). These figures, combined with slightly higher income and income taxes of EUR 11.3 million (previous year: EUR 10.8 million), resulted in consolidated net income for the period of EUR 21.8 million (previous year: EUR 21.0 million).

The Space Systems division’s unconsolidated total revenue of EUR 533.0 million exceeded the level recorded in the first nine months of the previous year (EUR 498.6 million). The increase in total revenue resulted in a significantly higher operating profit (EBITDA) of EUR 45.4 million (previous year: EUR 31.4 million). The segment’s EBIT of EUR 28.6 million was also significantly higher than the prior-year figure of EUR 23.1 million. The EBIT margin relative to unconsolidated total revenue thus increased from 4.6% in the prior year to 5.4% in the reporting period.

The unconsolidated total revenue of the Aerospace + Industrial Products division amounted to EUR 130.8 million in the first nine months of fiscal year 2019, down from EUR 140.6 million in the prior-year period. Operating profit (EBITDA) for this business segment decreased to EUR 12.5 million compared to the same period last year (EUR 15.6 million). Combined with higher depreciation and amortization, this resulted in a lower EBIT of EUR 7.6 million (previous year: EUR 11.3 million). The EBIT margin relative to total revenue thus reached 5.8%, down from 8.1% in the prior year.

The Group’s order backlog stood at EUR 2,061 million after nine months of fiscal year 2019, compared with EUR 2,408 million in the prior year. Of this amount, EUR 1,662 million—or approximately 80%—is attributable to OHB System AG. As of September 30, 2019, the OHB Group’s total assets stood at EUR 957.2 million, up by a good 27% from the level as of 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 newly recognized items on the asset side of the balance sheet: right-of-use assets from lease agreements

amounting to EUR 53.7 million, as well as, on the liabilities side, current and non-current lease liabilities totaling EUR 54.1 million The slight increase in equity from EUR 200.0 million to EUR 206.3 million was disproportionately smaller than the balance sheet growth and resulted in an equity ratio of 21.6% as of September 30, 2019, compared to 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 63.4 million, slightly below the previous year’s figure (EUR 66.0 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.