Slide 1: EADS Results 2000
EADS Results 2000 Philippe Camus - Rainer Hertrich, CEOs Axel Arendt, CFO Conference call - Amsterdam - March 19th, 2001 1) 2000 Overview 2) Operating performance by activity 3) Financials 4) Outlook 1
Slide 2: EADS 2000 financial Highlights
EADS 2000 financial Highlights Variation from 99 Revenues € 24.2 bn +7% New orders € 49.1 bn +50% Total backlog € 131.9 bn +29% EBIT pre-goodwill & exceptional € 1.4 bn +11% * Free Cash Flow € 1.5 bn +673% * net of gain on disposal of SEXTANT in 1999 Î Record level of orders and EBIT on track in spi
Slide 3: Key points 8 months after EADS creation
Key points 8 months after EADS creation What we said What we did • Agreements with Northrop Grumman in defence electronics, • Penetrate the US military market • defence electronics contract awarded by the US Navy, • JV with Northrop Grumman for • Develop in Services activities maintenance in the US
Slide 4: EADS sales breakdown; Airbus 2000 performance and key drivers
EADS sales breakdown pro-forma 2000 revenues pro-forma 2000 sales by division regional breakdown Military Rest of the Space Transport Aircraft * World Defence Asia & Civil Systems 10% 1% 10% 11% 9% 59% Airbus 53% Europe Aeronautics 19% North 28% america * before A400M program pro-forma 2000 sales pr
Slide 5: Military Transport Aircraft and Aeronautics 2000 performance
Military Transport Aircraft 2000 performance and key drivers €m pro-forma pro-forma KEY DRIVERS 2000 1999 Revenues** 316 241 • High replacement market potential R&D self-financed 59 15 in % of revenues 18.7% 6.2% • A400M program decided : EBIT* (63) (20) intents for 228 aircraft Order book 873 700 •
Slide 6: Space and Defence & Civil Systems 2000 performance
Space 2000 performance and key drivers €m pro-forma pro-forma A CHALLENGING COMPETITIVE 2000 1999 ENVIRONMENT Revenues 2,535 2,518 • 6 satellites contracts with major customers (Inmarsat and Intelsat) R&D self-financed 61 69 in % of revenues 2.4% 2.7% • reliability & dependability of Ariane V design
Slide 7: Key financial highlights
1) 2000 Overview 2) Operating performance by activity 3) Financials 4) Outlook Key financial highlights Pro forma 2000 Pro forma 1999 Deviation € million € million Revenues 24,208 22,553 + 7.3% EBIT* 1,399 1,445 EBIT* pre-SX disposal 1,399 1,263 +10.8% Free Cash Flow 1,531 198 +673.2% in years in ye
Slide 8: Revenues and EBIT by Division; Pro forma summarised profit & loss
Revenues and EBIT by Division Pro forma 2000 Pro forma 1999 € million EBIT EBIT pre-goodwill EBIT pre-goodwill EBIT Revenues & exceptional margin Revenues & exceptional margin Airbus 14,856 1,412 9.5% 12,639 925 7.3% Military Transport Aircraft 316 (63) (19.9%) 241 (20) (8.3%) Aeronautics 4,704 296
Slide 9: Free cash flow; In 2001, allocate hedging to each underlying contract
Free cash flow € million pro-forma pro-forma 2000 1999 Net Cash position as of January 1st (946) 343 Cash flow from operations* 1,699 753 Working capital requirement reduction 1,460 785 Cash flow from invest. activities (1,628) (1,340) Free cash flow 1,531 198 Capital increase 1,540 0 Dividend payme
Slide 10: Strong dollar has allowed for hedging that improves visibility
Strong dollar has allowed for hedging that improves visibility and enhance profitability • Main hedging rules : - hedge on a period that gives visibility and security - hedge only part of already booked orders => no speculative hedging • As of march 1st 2001, existing hedging is roughly $ 28 bn in t
Slide 11: A record level of orders and backlog; Value creation on track
A record level of orders and backlog Year-end 2000 backlog € bn x 2000 sales Airbus 104.4 7.0 MTA 0.9 2.8 Aeronautics 13.1 2.8 EADS 2000 orders and Space 4.8 1.9 34.2 revenues in € billion Defence and Civil Systems 9.7 3.3 Elim. & HQ (1) Total 131.9 5.5 14,9 Orders Revenues 49.0 8,3 24.2 4,7 3,0 3,9
Slide 12: 2001 is a year of investment and implementation of restructuring actions
2001 is a year of investment and implementation of restructuring actions to secure targeted value creation • Airbus : implement the synergies from Airbus Integrated Company creation and build-up the success of production rate increase • Space : cost reduction plan and reorganisation to keep competit
Slide 13: Why to invest in EADS?
Why to invest in EADS ? • An exceptional visibility : - € 132 bn record backlog represents more than 5 years of sales - 2001 first months show continuing commercial success - hedging policy => better visibility of the financial markets on our earning growth • Medium-term profitability target raised
Slide 14: EBIT (pre-goodwill exceptional depreciation); Operating income
EBIT (pre-goodwill exceptional depreciation) Pro forma 2000 Pro forma 1999 in % of in % of € million revenues € million revenues Revenues 24,208 22,553 Gross margin 4,136 16.8% 4,255 18.9% Gross margin pre-adjustment on fair value of assets 4,795 19.8% 4,424 19.6% Selling Administrative & others (2,
Slide 15: Restructuring expenses; EADS headcount
Restructuring expenses €m pro-forma 2000 Defence & Civil systems 63 Space 37 Headquarters 52 Total 152 • Defence & Civil Systems : restructuring of Defence electronics and missile activities • Space : headcount Reduction in Astrium and launcher activity • Headquarters restructuring : headcount reduc
Slide 16: Financial result breakdown; Cash flow from operations
Financial result breakdown € million Pro forma 2000 Pro forma 1999 Dec. 31st closing rate Euro versus $ 0,93 1,00 Interest expense 10 (13) Income from investments 111 83 Cost for hedge accounting (1,436) (1,916) Total financial result (1,315) (1,846) Î Strong $ and macro-accounting generated financi
Slide 17: Working capital reduction; Cash flow from Investments
Working capital reduction €m pro-forma 2000 Inventory variation (1,201) Trade receivables 252 Other assets 484 Trade liabilities 479 Other liabilities 1,446 Working Capital reduction 1,460 Cash flow from Investments €m pro-forma pro-forma 2000 1999 Fixed asset expenditures (1,291) (1,146) Financial
Slide 18: Balance sheet; Balance sheet correction
Balance sheet € million pro-forma pro-forma 2000 1999 Fixed Assets 20,894 19,952 of which intangible assets 8,165 8,329 of which property, plant & equipment 8,120 7,693 of which financial assets 4,609 3,930 Current Assets 16,745 13,794 of which cash & equivalents,securities 7,922 4,750 of which work