OHB SE Releases Its 2017 Nine-Month Interim Report

The third quarter of the current fiscal year was also marked by continued momentum within the OHB Group (Prime Standard, ISIN: DE0005936124) and a high volume of new orders. ESA and the European Commission had already commissioned OHB System AG in June of this year to manufacture eight additional Galileo navigation satellites for approximately EUR 324 million. Now, on October 5, another order was placed for four additional Galileo satellites with a contract value of EUR 158 million. This brings the total number of Galileo satellites supplied by OHB to 34.
Most recently, OHB System AG was awarded a contract by the relevant authority of the Federal Republic of Germany to develop a satellite system for global electro-optical reconnaissance. The project will be carried out within a budget of up to 400 million euros. What makes this contract special is that OHB will thus become the Federal Republic of Germany’s expert technology partner for both radar-based and electro-optical reconnaissance.

The OHB Group’s total revenue for the first nine months of the year reached EUR 541.0 million, an increase of 7% compared with the same period last year (prior year: EUR 507.1 million).

The company’s value added, amounting to EUR 320.6 million, remained at the same level as in the prior-year reporting period (EUR 321.1 million). The nearly 5% increase in cost of materials is a result of good progress in development projects. Operating profit (EBITDA) rose to EUR 41.6 million (previous year: EUR 37.5 million). The operating EBITDA margin improved to 7.7% after nine months of 2017, compared to 7.4% in the comparable prior-year period. Despite slightly higher depreciation and amortization of EUR 9.9 million in the current fiscal year, compared to EUR 8.9 million in the prior year, EBIT rose to EUR 31.7 million from EUR 28.6 million in the prior year. The corresponding EBIT margin increased to 5.9% from 5.6% in the prior year. Profit from ordinary activities rose disproportionately to the increase in value added by 16% to EUR 29.6 million after the first nine months of 2017 (prior year: EUR 25.4 million). Slightly higher income and income taxes of EUR 8.9 million (previous year: EUR 8.1 million) in the 2017 reporting period resulted in a 19% improvement in consolidated net income to EUR 20.6 million (previous year: EUR 17.3 million).

TheSpace Systemsdivision’s unconsolidated total revenue of EUR 404.0 millionexceededthe figure for the first nine months of the previous year, which was EUR 387.2 million. The increase in total revenue resulted in an operating profit (EBITDA) of EUR 24.4 million, which was on par with the previous year’s level (previous year: EUR 24.7 million). At EUR 18.5 million, the segment’s EBIT was nearly at the prior-year level of EUR 19.2 million due to slightly higher depreciation and amortization. The EBIT margin relative to unconsolidated total revenue accordingly declined slightly to 4.6% (prior-year figure: 4.9%).

The unconsolidated total revenue of the Aerospace + Industrial Products division reached EUR 145.2 million in the first nine months of fiscal year 2017 (previous year: EUR 123.3 million), an increase of approximately 18% compared to the same period last year. Costs for materials and purchased services, which rose by approximately 24% during the reporting period, amounted to EUR 67.8 million, compared to EUR 54.8 million in the prior year. Nevertheless, this resulted in a 31% increase in operating profit (EBITDA) to EUR 17.2 million, compared to EUR 13.1 million in the prior year. The segment’s EBIT, which rose by more than a third to EUR 13.3 million (previous year: EUR 9.8 million), also benefited from only slightly higher depreciation and amortization. The EBIT margin relative to total revenue reached 9.1% compared to 7.9% in the previous year.
The Group’s firm order backlog reached EUR 2,049 million after nine months of fiscal year 2017, compared to EUR 1,601 million in the same period of the previous year. Of this amount, EUR 1,524 million, or a good 74%, is attributable to OHB System AG.

At the end of the reporting period, cash and cash equivalents (excluding securities) stood at EUR 45.1 million, which was below the level of the same period last year (EUR 61.5 million).

As of September 30, 2017, the OHB Group’s total assets stood at EUR 757.1 million, an increase of EUR 74.1 million—or approximately 11%—compared to December 31, 2016 (EUR 682.9 million). Equity in the Group increased by EUR 16.1 million to EUR 199.7 million. The equity ratio was thus 26.4% as of September 30, 2017, virtually unchanged from the level of 26.9% as of December 31, 2016.

The Executive Board expects the OHB Group’s consolidated total revenue for the 2017 fiscal year to amount to EUR 800 million. The operating profit metrics EBITDA and EBIT are expected to reach EUR 60 million and EUR 44 million, respectively, in 2017. 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.