Outlook 2017

Outlook 2017

MTU's targets for the financial year 2017 are as follows:

in € millionForecast 2017Actual 2016
Revenues~5,3004,733
Adjusted EBIT ~560 503
Adjusted earnings after tax~390345

Free Cash Flow

~120

82

Revenues

MTU expects its commercial OEM business to see organic growth in the range of a high single digit percentage: The new engine business is affected by the ramp-up of the PW1000G programs, which should increase substantially in the second half of 2017; the main growth driver in the spare parts business is the V2500 program.

The military engine business is expected to decrease by a percentage in the mid-teens in 2017.

MTU’s forecast for its commercial maintenance business in 2017 is now for revenues to grow by a percentage in the mid- to high teens in U.S.-dollar terms.

Operating Profit

MTU expects its operating profit (adjusted EBIT) to increase in 2017 to around 560 m€.

Adjusted earnings after tax

Adjusted earnings after tax are expected to rise in 2017 to around 390 m€.

Free Cash Flow

2017 will again be another year of substantial investment spending accompanied by a reduction in the amount of advance payments in the military engine business. However, MTU plans to compensate for these factors through its operating activities and with 120 m€ achieve a significant increase in free cash flow compared to the previous year.

Disclaimer

In addition to information relating to past events, this report also contains forward-looking statements. Such passages can generally be identified through the use of such terms as ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘anticipate’, ‘predict’, ‘will’, ‘believe’, ‘is likely to’, ‘might’ and similar phrases, or through the fact that they are presented in the context of a strategy. Forward-looking statements relate to future expectations, developments, trends, and business strategies, and are based on analyses or predictions of MTU’s future business performance and estimates of figures that cannot be affirmed with any certainty at the present time. These forward-looking statements merely reflect MTU’s current outlook at the time the statements were made, and MTU does not accept any responsibility for updating forward-looking statements except in cases where it is a statutory requirement. The forward-looking statements contained in this chapter involve known and unknown risks, uncertainties, and other factors that may result in an actual future outcome based on real events, developments and performances that deviates significantly from the content of the statements presented here. These factors include changes in the general economic climate and business environment, exchange rate fluctuations, in addition to the factors enumerated in the "risk report" section of the MTU Annual Report 2015.