OHB SE discloses 9M interim report 2017

• Total revenues increased to EUR 541 million (+7%),
• EBITDA increased to EUR 41.6 million (+11%),
• EBIT increased to EUR 31.7 million (+11%),
• Net profit increased to EUR 20.6 million (+19%)
• ESA/EU ordering a further four Galileo satellites
• Federal Republic of Germany awarded a contract for electro-optical reconnaissance satellites
• Full year guidance 2017 confirmed

Bremen, November 14, 2017. The third quarter of the current year was again characterized by sustained momentum across the OHB Group (Prime Standard, ISIN: DE0005936124) as well as a high number of new orders. On June 22 of this year, ESA and the European Commission awarded OHB System AG a contract for the assembly of a further eight Galileo navigation satellites for around EUR 324 million. This was followed on October 5 by a further contract for an additional four Galileo satellites worth around EUR 158 million. This brings to 34 the total number of Galileo FOC* satellites supplied by OHB and testifies once more to the high quality of the navigation satellites already delivered.
On a particularly encouraging note, the responsible office of the Federal Republic of Germany awarded a contract to OHB System AG on November 8 for the installation of a satellite system for global electro-optical reconnaissance. The contract has a budget of up to EUR 400 million. What makes this contract award so special is that it shows that OHB is now a competent technology partner for the Federal Republic of Germany in both radar-based and electro-optical reconnaissance.

OHB Group achieved total revenues of EUR 541.0 million after nine months, increasing over the same period of the previous year by just under 7% (previous year: EUR 507.1 million).

At EUR 320.6 million, the Group’s internal added value was roughly the same as in the previous year (EUR 321.1 million). The increase of just under 5% in the cost of materials reflects the successful progress being made on the development projects. Operating earnings (EBITDA) rose to EUR 41.6 million (previous year: EUR 37.5 million). The operating EBITDA margin improved to 7.7% at the end of the first nine months of 2017, compared with 7.4% in the comparable prior-year period. Despite the slightly higher depreciation and amortization expense of EUR 9.9 million in the reporting period (previous year: EUR 8.9 million), EBIT climbed to EUR 31.7 million, up from EUR 28.6 million in the previous year. The EBIT margin came to 5.9%, up from 5.6% in the previous year. Profit from ordinary business activities rose by 16% to EUR 29.6 million at the end of the first nine months of 2017 (previous year: EUR 25.4 million), thus outpacing the growth in the Group’s internal added value. With income tax rising slightly to EUR 8.9 million in the reporting period (previous year: EUR 8.1 million), consolidated net profit for the period rose by 19% to EUR 20.6 million (previous year: EUR 17.3 million).

At EUR 404.0 million, non-consolidated total revenues in the Space Systems business unit were up on the first nine months of the previous year (EUR 387.2 million). The increase in total revenues resulted in operating earnings (EBITDA) of EUR 24.4 million, i.e. on a par with the previous year (EUR 24.7 million). Segment EBIT came to EUR 18.5 million, thus coming close to the previous year’s figure of EUR 19.2 million, reflecting the slight increase in depreciation and amortization expense. The EBIT margin relative to the segment’s non-consolidated total revenues contracted slightly to 4.6% (previous year: 4.9%).

In the first nine months of 2017, non-consolidated total revenues in the Aerospace + Industrial Products business unit increased by around 18% over the year-ago period to EUR 145.2 million (previous year: EUR 123.3 million). The cost of materials and services purchased rose by around 24% from EUR 54.8 million in the year-ago period to EUR 67.8 million in the period under review. Despite this, operating earnings (EBITDA) increased by 31% to EUR 17.2 million, up from EUR 13.1 million in the previous year. The increase of more than one third in segment EBIT of EUR 13.3 million (previous year: EUR 9.8 million) additionally benefited from an only slight increase in depreciation and amortization expense. The EBIT margin relative to non-consolidated total revenues came to 9.1%, compared with 7.9% in the previous year. 
The firm orders held by the Group at the end of the first nine months of 2017 were valued at EUR 2,049 million, up from EUR 1,601 million in the previous year. Of this, OHB System AG accounted for EUR 1,524 million or a good 74%.
At EUR 45.1 million at the end of the period under review, cash and cash equivalents (net of securities) fell short of the previous year (EUR 61.5 million). The OHB Group’s total assets increased by EUR 74.1 million or around 11% over the end of the previous year to EUR 757.1 million as of September 30, 2017 (December 31, 2016: EUR 682.9 million). Consolidated equity expanded by EUR 16.1 million to EUR 199.7 million. Accordingly, the equity ratio came to 26.4% as of September 30, 2017 and was thus virtually unchanged over December 31, 2016 (26.9%).

The Management Board expects consolidated total revenues of EUR 800 million for 2017, accompanied by EBITDA of EUR 60 million and EBIT of 44 million. Given the greater order backlog and upbeat outlook for the current year, the Management Board assumes that the Group’s net assets and financial condition will also remain strong.