OHB SE Releases Its 2020 Nine-Month Interim Report

The OHB Group (ISIN: DE0005936124, Prime Standard) reported total revenue of EUR 600 million after nine months of the current fiscal year, a 9% decrease compared to the same period last year (previous year: EUR 659 million). Operating profit (EBITDA) declined at a slower rate, from EUR 57.9 million in the prior year to EUR 55.5 million. The operating EBITDA margin thus rose to 9.3% in the reporting period, compared to 8.8% in the comparable prior-year period. EBIT decreased further in the first nine months of the current fiscal year to EUR 30.1 million from EUR 36.1 million in the prior year, due to higher depreciation and amortization. The corresponding EBIT margin decreased to 5.0% from 5.5% in the prior-year period. The EBIT margin on own value added changed to 8.5% (prior year: 9.7%).

The Space Systems segment’s unconsolidated total revenue of EUR 493.5 million was below the level recorded in the first nine months of the previous year (EUR 533.0 million). Despite the decline in total revenue, the segment posted a significantly higher operating profit (EBITDA) of EUR 53.7 million (previous year: EUR 45.4 million). Despite higher depreciation and amortization, the segment’s EBIT of EUR 34.1 million was also significantly higher than the prior-year figure of EUR 28.6 million. The EBIT margin relative to unconsolidated total revenue thus rose sharply from 5.4% in the prior year to 6.9% in the reporting period.

The unconsolidated total revenue of the Aerospace segment for the first nine months of fiscal year 2020 was EUR 110.0 million, significantly below the prior-year figure of EUR 130.8 million. Operating profit (EBITDA) for this business segment amounted to EUR 2.1 million, a significant decrease compared to the prior year (EUR 12.5 million). These developments, combined with increased depreciation and amortization, led to a significant decline in EBIT from EUR 7.6 million in the prior year to EUR -3.7 million. The EBIT margin relative to unconsolidated total revenue was thus -3.4%, compared to 5.8% in the prior year.

The financial result of EUR -5.8 million decreased compared with the same period last year, primarily due to higher financial expenses (prior year: EUR -3.1 million). Earnings before taxes (EBT) thus decreased by 26% to EUR 24.3 million after the first nine months of 2020 (prior year: EUR 33.0 million). Lower income and income taxes of EUR 7.8 million (previous year: EUR 11.3 million) resulted in a 24% decrease in consolidated net income for the 2020 reporting period to EUR 16.5 million (previous year: EUR 21.8 million).

The Group’s order backlog stood at EUR 2,019 million after nine months of fiscal year 2020, compared with EUR 2,061 million in the prior year. Of this amount, EUR 1,710 million—just under 85%—is attributable to OHB System AG. As of September 30, 2020, the OHB Group’s total assets stood at EUR 981.3 million, up by a good 5% from the level as of December 31, 2019 (EUR 931.0 million). The increase in equity from EUR 200.8 million to EUR 216.8 million resulted, due to the extension of the balance sheet, in an equity ratio of 22.0% as of September 30, 2020, compared to 21.6% at the end of the year on December 31, 2019. At the end of the reporting period, cash and cash equivalents stood at EUR 102.0 million, down from the prior-year figure (EUR 63.4 million).

We had communicated our guidance for 2020 to the capital markets via an ad hoc announcement. The figures published on February 13 were EUR 1.1 billion in total revenue, EUR 80 million in EBITDA, and EUR 44 million in EBIT. With regard to total revenue, the Executive Board no longer expects to meet this guidance. Due to the changed market outlook for the Ariane 6 program and Covid-19-related delays in the supply chain, consolidated total revenue for the current fiscal year is expected to be just under EUR 1 billion. However, the factors mentioned above have only a minor overall impact on the earnings metrics EBITDA and EBIT. It is not yet clear to what extent the actual results at year-end will deviate from our plans and expectations from February. For this reason, we are currently unable to either confirm or withdraw the guidance for the EBITDA and EBIT metrics for the 2020 fiscal year.