Capítulo III MARCO TEÓRICO
3.22. Contenidos más allá de la plataforma
Company-funded research and development expenditure developed as follows:
in € million 2015 2014
Cost of materials –3,183.1 –2,696.1 Personnel expenses –480.6 –458.4 Depreciation and amortization –162.5 –143.1 Other cost of sales –28.8 –77.8
Total cost of sales –3,855.0 –3,375.4
COST OF SALES
For more information on changes in research and development expenditure, please refer to “Research and development” of the combined management report.
GENERAL ADMINISTRATIVE EXPENSES
in € million 2015 2014
Cost of materials –6.6 –6.7
Personnel expenses –51.6 –40.8 Depreciation and amortization –2.1 –11.3 Other administrative expenses –5.3 –3.8
Total general administrative expenses –65.6 –62.6
OTHER OPERATING INCOME AND EXPENSES
in € million 2015 2014
Income
Gains from the disposal of intangible assets
and property, plant and equipment 0.4 0.4 Reimbursement of insurance claims 3.2 4.3 Rental income from
property owned by MTU 2.5 2.1 sublet property owned by third parties 0.8 0.8 Sundry other operating income 7.7 4.3
Total other operating income 14.6 11.9 Expenses
Losses from the disposal of intangible assets and property,
plant and equipment –0.3 –4.3
Rental payments for
sublet property –0.8 –0.8
Expenses associated with insurance claims –3.3 –5.2 Sundry other operating expenses –9.2 –4.6
Total other operating expenses –13.6 –14.9
Balance of other operating
income and expenses 1.0 –3.0
General administrative expenses are expenses incurred in connection with administrative activities unrelated to develop- ment, production or sales activities.
SELLING EXPENSES
in € million 2015 2014
Cost of materials –16.9 –16.2
Personnel expenses –64.3 –57.5 Depreciation and amortization –1.5 –1.7 Other selling expenses –11.6 –12.3
Total selling expenses –94.3 –87.7
4. SELLING EXPENSES
5. GENERAL ADMINISTRATIVE
EXPENSES
The MTU group does not hold any investment property. An insignificant part of the buildings recognized under property, plant and equipment is rented out to external third parties. A significant item recognized under sundry other operating income in 2015 is the reversal of the previously recognized impairment loss in respect of the shareholder loan granted to AES Aerospace Embedded Solutions GmbH, Munich, which has meanwhile been repaid. The loan was repaid in conjunction with an increase of € 6.0 million in the equity capital of AES, with equal amounts being invested by each joint venture partner. In 2015, as in the previous year, other operating income did not include any government grants.
Significant items recognized under sundry other operating expenses in 2015 are an accrual for customs risk and the write-down of the carrying amount of the group’s interest in and short-term receivables from its non-consolidated subsidiary MTU Maintenance Dallas Inc., Grapevine, USA. This write-down was deemed necessary in view of the sustained need by MTU Maintenance Dallas Inc. for shareholder financing owing to its poor business performance.
6. OTHER OPERATING INCOME AND
EXPENSES
Selling expenses comprise expenses for advertising and marketing, expenses in connection with air shows, trade fairs and exhibitions, media relations expenses, and valuation allowances and write-downs on trade receivables.
INTEREST RESULT
in € million 2015 2014
Interest income 2.4 1.3
Interest expense on
Corporate bonds and notes –11.5 –11.5 Liabilities to banks –0.9 –1.0 Finance lease agreements –0.4 –0.3 Other interest expenses –1.2 –2.6 Capitalized borrowing costs for
qualifying assets 10.5 5.3
Interest expenses –3.5 –10.1
Interest result –1.1 –8.8
Thereof: on financial instruments classified in accordance with IAS 39 as:
Loans and receivables 2.1 1.1
Available-for-sale
financial assets 1.9 1.1
Financial liabilities measured
at amortized cost -3.5 –10.1
8. INTEREST RESULT
In the financial year 2015, borrowing costs in the amount of € 10.5 million (2014: € 5.3 million), were capitalized for qualifying assets acquired or constructed in connection with the group’s stake in the PW1000G, PW800 and GE9X engine programs. The capitalized amount was determined on the basis of a cost of debt capital of 3.18 % (2014: 3.32 %). No actual borrowing costs were incurred for the specific qualifying assets in question in the reporting period.
7. PROFIT/LOSS OF COMPANIES
ACCOUNTED FOR USING THE EQUITY
METHOD OR AT COST
PROFIT/LOSS OF COMPANIES ACCOUNTED FOR USING THE EQUITY METHOD OR AT COST
in € million 2015 2014
Profit/loss of companies accounted for using the equity method
Associates 0.4 –0.1
Joint ventures 28.7 22.1
Total profit/loss of companies accounted
for using the equity method 29.1 22.0 Profit/loss of companies
accounted for at cost
Military program coordination and
management companies 0.5 0.6
Other related companies 1.1 1.4
Total profit/loss of companies accounted
for at cost 1.6 2.0
As in 2014, the development of business by the joint venture MTU Maintenance Zhuhai Co. Ltd., Zhuhai, China, was responsible for a significant part of MTU’s share of the profit/loss of companies accounted for using the equity method.
FINANCIAL RESULT ON OTHER ITEMS
in € million 2015 2014
Effects of currency translation: exchange rate gains/losses on
Currency holdings 7.8 –12.0
Financing transactions –8.9 4.4 Fair value gains/losses on derivatives
Currency and interest rate derivatives –33.7 –19.9 Forward commodity sales contracts –0.9 0.1 Interest portion included in measurement of
assets and liabilities
relating to pension funds –13.3 –20.4 Receivables, other
provisions and liabilities –16.7 -0.9 Financial result on sundry other items 2.0 2.7
Financial result on other items –63.7 –46.0
Thereof: on financial instruments classified in accordance with IAS 39 as:
Financial assets at fair value through profit or
loss - held for trading 41.5 22.7 Financial liabilities at fair value through profit
or loss - held for trading -74.1 –40.4
The financial result on other items deteriorated in the reporting period, with the net expense increasing by € 17.7 million to € 63.7 million (2014: net expense of € 46.0 million). In 2015, the main contributing factors were fair-value losses on derivatives amounting to € 34.6 million (2014: € 19.8 million), foreign currency translation losses on financing transactions amounting to € 8.9 million (2014: gains amounting to € 4.4 million), and the net interest expense arising from the sub- sequent measurement of receivables, other provisions and liabilities, which totaled € 16.7 million (2014: € 0.9 million).
9. FINANCIAL RESULT ON
OTHER ITEMS
The latter relates in particular to the subsequent measurement of financial liabilities arising from the IAE-V2500 stake increase. It should be noted that the prior-year figures include an amount for the unwinding of discount on the corresponding provisions. Components of the financial result on other items which im- proved compared with 2014 were the interest cost on pension obligations which, due to changes in the applied discount rate, decreased from € 20.4 million in 2014 to € 13.3 million in 2015, and foreign currency translation gains amounting to € 7.8 million (2014: translation losses amounting to € 12.0 million). The financial result on other items includes all income and expense components of financial instruments classified as “held for trading” in accordance with IAS 39.10. INCOME TAXES
Recognized income taxes comprise current income taxes paid or payable in the countries in which the group operates, and deferred tax income or expense, including interest in connection with tax payments and refunds for prior periods resulting from tax field audits.
ANALYSIS OF CURRENT AND DEFERRED TAX EXPENSES
in € million 2015 2014
Tax expense incurred in current period -115.7 –112.6 Tax expense incurred
in prior periods -21.4 –38.0
Current tax expense –137.1 –150.6
Deferred tax income resulting from
temporary differences 39.6 50.7 Deferred tax income resulting
from tax credits –4.2 9.0
Deferred tax income resulting
from tax losses carried forward –1.5 7.6
Deferred tax income 33.9 67.3
Recognized tax expense –103.2 –83.3
The tax expense incurred in prior periods includes interest payments amounting to € 8.6 million (2014: € 4.1 million).
RECONCILIATION OF EBIT TO ADJUSTED EBIT, DEPRECIATION/ AMORTIZATION EXPENSE AND NON-RECURRING ITEMS
in € million 2015 2014
Earnings before interest
and tax (EBIT) 385.6 333.5
+ Depreciation/amortization effect of purchase price allocation / V2500 stake increase
Intangible assets 54.2 48.4
Property, plant and equipment 0.5 0.8
Total depreciation/
amortization expense 54.7 49.2
Adjusted EBIT 440.3 382.7
11. EARNINGS PER SHARE
Diluted earnings per share are calculated by dividing earnings after tax by the sum obtained when the number of common shares that could potentially be issued through the granting of equity instruments is added to the weighted average number of outstanding shares.
In 2015, the group generated earnings after tax amounting to € 217.6 million (2014: € 195.4 million).
In the reporting period, the weighted average number of out- standing shares was 51,073,326 (2014: 50,946,842 shares). A further 791 shares (2014: 13,413 shares) could potentially be issued through the Share Matching Plan (SMP). Following a resolution passed in 2015, it was decided that any not- yet-exercisable SMP share options would be settled in cash, with the Performance Share Plan (PSP) and SMP options of the Executive Board replaced in 2016 by a Restricted Stock Program (for more details, see the management compensation report that forms part of the Corporate Governance Report). Based on these parameters, undiluted earnings per share amounted to € 4.26 in 2015 (2014: € 3.84), while diluted earnings per share also amounted to € 4.26 (2014: € 3.83).