100 % more pressure - MTU Aero Engines

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3. FINANCIAL SITUATION
MTU Aero Engines’ group revenues increased in the financial year 2011 by 8.3 % to € 2.9 billion. Revenues
in the commercial and military engine business grew by 11.0 % and in the commercial maintenance business
by 4.0 %. The group’s operating profit increased in 2011 by 5.6 % to € 328.0 million, which is higher than both
the original and the revised earnings forecasts for the year. As a result of the high free cash flow, net financial
debt was reduced to € 12.2 million.
3.1. operatinG results
The following explanatory comments and analyses are derived from the audited MTU consolidated
financial statements for the financial years ending December 31, 2011, and 2010. The consolidated
financial statements are drawn up in accordance with the International Financial Reporting Standards
(IFRSs) issued by the International Accounting Standards Board (IASB), to the extent that these have
been adopted by the European Union.
In accordance with IFRS requirements, certain new or revised/amended standards and interpretations
were applied for the first time in the financial statements for 2011. Their application did not give
rise to any changes with a significant impact on the group’s financial situation, net assets or operating
results. Consequently, no changes in the financial reporting principles or in management judgments
with respect to the application of the accounting standards had an effect on the group’s business
performance in the reporting period.
inFOrmatiOn On exchanGe rates
The financial data presented in this annual report are stated in euros, U.S. dollars, Canadian dollars,
Chinese yuan renminbi or Polish zloty. All currency translations are based on the official exchange
rates published by the European Central Bank.
Foreign currency exchange rates
Currency ISO-Code Rate on balance sheet date Average rate
Dec. 31, 2011
1 euro =
Dec. 31, 2010
1 euro =
2011
1 euro =
2010
1 euro =
United States dollar USD 1.2939 1.3362 1.3920 1.3260
Canadian dollar CAD 1.3215 1.3322 1.3761 1.3656
Chinese yuan renminbi CNY 8.1588 8.8220 8.9960 8.9738
Polish zloty PLN 4.4580 3.9750 4.1206 3.9949
MTU in its present form was created with effect from January 1, 2004, when Kohlberg Kravis Roberts
& Co. Ltd. (KKR) purchased 100 % of the company’s shares from the then DaimlerChrysler AG. In the
context of the acquisition, assets, liabilities and contingent liabilities were identified in accordance
with IFRS 3 and measured at fair value. Since then, the identified intangible assets, in particular, have
led to considerable scheduled amortization expenses each year. In the following text they are referred
to collectively as ‘effects of the purchase price allocation’ and, in order to facilitate comparison,
corresponding adjustments have been applied to eliminate them from the indicators presented below.