Slide 1: FY 2018 Results, 14 February 2019
14 February 2019 Tom Enders | Chief Executive Officer Harald Wilhelm | Chief Financial Officer Guillaume Faury | President Airbus Commercial Aircraft
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT DISCLAIMER This presentation includes forward-looking statements. Words such as “anticipates”, “believes”, “estimates”, “expects”, “intends”, “plans”, “projects”, “may” and similar expressions are used to identify these forward-looking statements. Examples of forward-looking s
Slide 3: Company Highlights
Company Business Guidance Highlights Highlights Highlights
Slide 4: FY 2018 Highlights
4 FY 2018 HIGHLIGHTS Strong 2018 performance, Guidance delivered A380 deliveries cease in 2021 A400M re-baselining negotiated Dividend proposal: € 1.65 / share, +10% vs. FY 2017 2019 Guidance confirms growth trajectory
Slide 5: FY 2018 Commercial Positioning
5 FY 2018 COMMERCIAL POSITIONING Airbus Commercial Aircraft Consolidated Airbus Consolidated Airbus Order Book in units by Programme Order Book in value by Region External Revenue by Division 7,577 units € 460 bn € 63.7 bn t/o A220 t/o defence t/o defence 480 units € 39 bn € 9.9 bn A320 80% A330 4%
Slide 6: FY 2018 Financial Performance
6 FY 2018 FINANCIAL PERFORMANCE Revenues EBIT Adjusted in € bn in € bn / RoS (%) 9.2% 5.4% 59.0 63.7 5.8 3.2 FY 2017 FY 2017 Restated FY 2018 FY 2017 FY 2017 Restated FY 2018 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn 5.22 2.9 2.9 2.67 FY 2017 Restated FY 2017 FY 2018 FY 2017
Slide 7: FY 2018 Profitability
7 FY 2018 PROFITABILITY EBIT Performance in € bn FY 2018 EBIT Reported of € 5.0 bn FY 2018 EBIT Adjustments resulting from: € – 463 m A380 5.8 5.0 € – 436 m A400M provision 3.2 2.7 € – 123 m Compliance costs € + 188 m M&A EBIT Adjusted EBIT Reported € + 129 m PDP mismatch / BS revaluation FY 2017 Re
Slide 8: Currency Hedge Policy
8 CURRENCY HEDGE POLICY IN $ BILLION Forward Sales as of December 2018 1.9 Collars as of December 2018 4.6 Forward Sales and Collars as of Dec. 2017 1.7 25.4 25.7 22.2 17.0 7.6 1.3 Average hedge 2018 2019 2020 2021 2022 2023 rates and beyond € vs $ 1.24 1.23 1.23 1.24 1.27 1.30 Forwards/Collars (2)
Slide 9: FY 2018 Cash Evolution
9 FY 2018 CASH EVOLUTION IN € BILLION +5.5 -0.6 +0.5 -1.9 -1.2 -2.4 Free Cash Flow incl. A220 before M&A : € 3.0 bn t/o Customer Financing: € 0.1 bn 13.4 Free Cash Flow before M&A and 13.3 Customer Financing € 2.9 bn Net Cash Gross Cash Flow Change in Cash used for M&A(2) Shareholder Pensions & Net
Slide 10: Business Highlights
Company Business Guidance Highlights Highlights Highlights
Slide 11: Airbus Commercial: Record deliveries of 800 aircraft
11 FY 2018 FY 2017 Change Deliveries by Programme (units) IN € MILLION Restated Order Intake (net) 747 1,109 -32.6% A320 78% Units Order Book 7,577 7,265 4.3% A350 12% Order Intake (net) 41,519 N/A N/A A330 6% Value Order Book 411,659 N/A N/A A220 3% Deliveries (units) 800 718 11.4% A380 2% Revenues
Slide 12: Helicopters
12 HELICOPTERS FY 2018 FY 2017 Change External Revenue Split IN € MILLION Restated Order Intake (net) 381 335 13.7% Civil 51% Units Order Book 717 692 3.6% Defence 49% Order Intake (net) 6,339 N/A N/A Value Order Book 14,943 N/A N/A Deliveries (units) 356 409 -13.0% Revenues 5,934 6,335 -6.3% R&D Ex
Slide 13: Defence and Space
13 DEFENCE AND SPACE FY 2018 FY 2017 Change External Revenue Split IN € MILLION Restated Order Intake (net) 8,441 N/A N/A Value Platforms 70% Order Book 35,316 N/A N/A Services 30% Revenues 11,063 10,596 4.4% R&D Expenses 328 322 1.9% in % of Revenues 3.0% 3.0% EBIT Adjusted 935 815 14.7% in % of Re
Slide 14: Guidance
Company Business Guidance Highlights Highlights Highlights
Slide 15: 2019 Guidance and Dividend Proposal
15 2019 GUIDANCE AND DIVIDEND PROPOSAL As the basis for its 2019 guidance, Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions Airbus 2019 Earnings and FCF guidance is before M&A Airbus targets 880 to 890 commercia
Slide 16: Key Priorities
16 KEY PRIORITIES Deliver on 2019 commitments Ramp-up A320 Improve A350 margins Leverage military portfolio Services, Digital and Innovation Deliver Earnings and FCF growth potential
Slide 17: Appendix
AIRBUS FY Results 2018 Appendix AIRBUS
Slide 18: Dividend per Share
18 DIVIDEND PER SHARE IN € [ 1.65 (1) ] 1.50 1.35 105% 40% 42% FY 2016 FY 2017 FY 2018 Pay-out Ratio Ex-dividend date: Monday 15 April 2019 Record date: Tuesday 16 April 2019 Payment date: Wednesday 17 April 2019 (1) Board proposal to be submitted to the AGM 2019. Subject to AGM approval
Slide 19: Expected Airbus Average Hedge Rates € vs. $
19 EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $ Active exposure management 1.36 Average 1.34 Hedge Rates 1.33 1.32 FY 2017 1.29 1.31 1.30 1.29 FY 2018 1.24 1.28 1.27 1.27 1.27 FY 2019E 1.23 1.26 1.25 1.24 1.22 1.22 1.22 1.20 1.19 (1) 1.20 1.18 1.18 1.16 Q1 Q2 Q3 Q4 FY 2019E FY 2018 FY 2017 2018 figur
Slide 20: FY 2018 Detailed Income Statement and Adjustments
20 FY 2018 DETAILED INCOME STATEMENT AND ADJUSTMENTS IN € MILLION thereof Adjustments Impact on EBIT Financial FY 2018 FY 2018 Operational FX Result Adjusted Defence and Airbus Helicopters Airbus Space(1) EBIT 5,048 5,834 (642) (259) (14) 129 in % of Revenues 7.9% 9.2% Interest income 208 208 Intere
Slide 21: FY 2017 Detailed Income Statement and Adjustments
21 FY 2017 DETAILED INCOME STATEMENT AND ADJUSTMENTS IN € MILLION thereof Adjustments Impact on EBIT FY 2017 FY 2017 Financial Operational FX Adjusted Restated Result Restated Defence and Airbus Helicopters Airbus & ADS (2) Space(1) EBIT 2,665 3,190 (46) (472) 0 (7) in % of Revenues 4.5% 5.4% Intere
Slide 22: Q4 2018 Key Figures
22 Q4 2018 KEY FIGURES IN € MILLION Q4 2018 Q4 2017 Restated Revenues 23,286 21,015 EBIT Adjusted 3,096 1,982 EBIT 2,365 992 Net Income 1,601 963 FCF before M&A 7,333 6,630 FCF before M&A and Customer Financing 7,081 6,293 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 IN € MILLION Restated Restate
Slide 23: Airbus: Strong Liquidity Position
23 AIRBUS: STRONG LIQUIDITY POSITION AS OF 31 DECEMBER 2018 € 3.0 bn Credit Facility: Credit Facility (RSCF) Maturity 2021, undrawn Fully committed by 40 banks No financial covenants, no MAC clause € 8.9 bn Financing Liabilities: Financing Liabilities of which long-term : € 7.5 bn Includes €
Slide 24: Detailed Free Cash Flow
24 DETAILED FREE CASH FLOW IN € MILLION FY 2018 FY 2017 Restated Net Cash position at the beginning of the period 13,391 11,113 Gross Cash Flow from Operations (1) 5,515 4,356 (2) Change in working capital (633) 361 (3) Cash used for investing activities (1,377) (982) of which Industrial Capex (addi
Slide 25: Net Cash Position
25 NET CASH POSITION IN € MILLION FY 2018 FY 2017 Restated Gross Cash 22,207 24,587 Financing Debts (8,926) (11,196) Short-term Financing Debts (1,463) (2,212) Long-term Financing Debts (7,463) (8,984) Reported Net Cash 13,281 13,391 Airbus non-recourse debt 28 29 Net Cash excl. non-recourse 13,309
Slide 26: Customer Financing Exposure
26 CUSTOMER FINANCING EXPOSURE IN € MILLION Dec. 2018 Dec. 2017 Dec. 2018 Dec. 2017 Restated Restated Airbus Helicopters Closing rate € 1 = $ 1.15 $ 1.20 $ 1.15 $ 1.20 Total Gross Exposure 803 1,264 109 135 of which off-balance sheet 28 144 10 4 Estimated value of collateral (562) (953) (35) (64) Ne
Slide 27: Airbus Customer Financing
27 AIRBUS CUSTOMER FINANCING IN € BILLION Additions Sell Down Amortization Net change 0.6 1.0 0.9 0.8 0.3 0.8 0.8 0.7 0.5 0.6 0.6 0.4 0.1 Airbus Customer (0.3) (0.5) Financing Gross (0.2) (0.7) (0.7) (0.6) (0.6) (0.2) (0.7) (0.7) (0.7) Exposure (1.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.2) (0.2) (0.2) (
Slide 28: Balance Sheet Highlights: Assets
28 BALANCE SHEET HIGHLIGHTS: ASSETS IN € MILLION Dec. 2018 Dec. 2017 Restated Non-current Assets 56,564 53,525 of which Intangible & Goodwill 16,726 11,629 of which Property, plant & equipment 16,773 16,610 of which Investments & Financial assets 5,504 5,821 of which positive hedge mark-to-market 1,
Slide 29: Balance Sheet Highlights: Liabilities
29 BALANCE SHEET HIGHLIGHTS: LIABILITIES IN € MILLION Dec. 2018 Dec. 2017 Restated Total Equity 9,719 10,742 of which OCI (Other Comprehensive Income) 134 2,742 of which Non-controlling interests (5) 2 Total Non-current liabilities 44,693 42,822 of which pensions 6,690 8,025 of which other provision
Slide 30: Shareholding Structure as at 31 December 2018
30 SHAREHOLDING STRUCTURE AS AT 31 DECEMBER 2018 Free Float (73.7%) Shareholder Agreement (26.3%) SOGEPA (11.1%) GZBV (11.0%) SEPI (4.2%) Treasury Shares (0.1%) 776,367,881 shares issued as at 31 December 2018 2018 figures include A220, consolidated into Airbus as of July 1st 2018
Slide 31: Quarterly Revenues Breakdown (Cumulative)
31 QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) IN € MILLION Q1 H1 9m FY 2018 2017 2018 2017 2018 2017 2018 2017 Restated Restated Restated Restated Airbus 7,222 8,166 18,546 18,182 30,478 27,579 47,970 43,486 Helicopters 961 1,176 2,388 2,716 3,755 4,197 5,934 6,335 (1) Defence and Space(1) 2,217 2,34
Slide 32: Quarterly EBIT Adjusted Breakdown (Cumulative)
32 QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE) IN € MILLION Q1 H1 9m FY 2018 2017 2018 2017 2018 2017 2018 2017 Restated Restated Restated Restated Airbus (41) (103) 867 257 2,340 806 4,808 2,383 Helicopters (3) (6) 135 80 202 161 380 247 (1) Defence and Space(1) 112 118 309 298 409 397 935 815 T
Slide 33: Quarterly EBIT Breakdown (Cumulative)
33 QUARTERLY EBIT BREAKDOWN (CUMULATIVE) IN € MILLION Q1 H1 9m FY 2018 2017 2018 2017 2018 2017 2018 2017 Restated Restated Restated Restated Airbus (2) (48) 773 381 2,238 779 4,295 2,257 Helicopters (10) (6) 114 80 179 161 366 247 (1) Defence and Space(1) 265 657 382 832 479 889 676 462 Transversal
Slide 34: FY 2018 IFRS vs. APM Cash Flow Reconciliation
34 FY 2018 IFRS VS. APM CASH FLOW RECONCILIATION IN € MILLION IN € MILLION FY 2018 FY 2018 Cash provided by (used for) operating activities 2,318 Cash provided by (used for) operating activities 2,318 t/o Reimbursement from / contribution to plan assets (2,519) Cash provided by (used for) investing
Slide 35: Glossary on Alternative Performance Measures (APM)
35 GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM) The following Presentation also contains certain “non-GAAP financial measures”, i.e. financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measure calculated and presented in a