Slide 1: Airbus H1 Results 2017
AIRBUS H1 Results 2017 27 July 2017 Tom Enders Harald Wilhelm Chief Executive Officer Chief Financial Officer
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT 2 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
Slide 3: H1 Results: Company Highlights
H1 Results Company Highlights Divisional Highlights Guidance Highlights 2017
Slide 4: H1 2017 Highlights
H1 2017 HIGHLIGHTS 4 Healthy commercial aircraft environment; robust backlog of 6,771 a/c supports ramp-up plans H1 financials reflect delivery pattern mainly impacted by engine issues Continued focus on ramp-up, operations and integration 2017 Guidance maintained
Slide 5: H1 2017 Commercial Positioning
H1 2017 COMMERCIAL POSITIONING 5 Airbus Order Book* Airbus External by Region (by value) Revenue Split by Division 9% 5% 16% 33% 13% 9% € 981 bn € 29 bn t/o defence € 38.2 bn t/o defence € 4.6 bn 19% 75% 21% ● Asia Pacific ● Middle East ● Commercial Aircraft ● Europe ● Latin America ● Helicopters ●
Slide 6: H1 2017 Financial Performance
H1 2017 FINANCIAL PERFORMANCE 6 Revenues EBIT Adjusted 5.8% in € bn / RoS (%) 3.8% in € bn 28.8 28.7 1.68 1.10 H1 2016 H1 2017 H1 2016 H1 2017 EPS(1) Adjusted FCF before M&A and Customer Financing (2.1) in € (2.6) 1.40 in € bn 0.83 TBU H1 2016 H1 2017 H1 2016 H1 2017 (1) H1 2017 Average number of sh
Slide 7: H1 2017 Profitability
H1 2017 PROFITABILITY 7 EBIT Performance H1 2017 EBIT reported of € 1.79 bn H1 2017 Adjustments resulting from: €- 70 m A400M LMC 1.85 in € bn 1.68 1.79 €+ 174 m $ PDP mismatch / BS Revaluation 1.10 €+ 28 m Other AD Portfolio €+ 560 m Defence Electronics net capital gain €+ 692 m Net Adjustments H1
Slide 8: Currency Hedge Policy
CURRENCY HEDGE POLICY 8 IN $ BILLION Net Exposure ● Forward Sales as of June 2017 ● Collars as of June 2017 ● Forward Sales and Collars as of Dec. 2016 3.8 13.0 4.6 25.2 1.6 21.3 12.1 16.1 12.1 Average hedge rates 2017 2018 2019 2020 2021 remaining 6 months and beyond 1.26 1.25 1.24 1.22 1.22 € vs $
Slide 9: H1 2017 Cash Evolution
H1 2017 CASH EVOLUTION 9 IN € BILLION +1.3 +0.6 -3.1 -0.7 -1.0 -0.2 Free Cash Flow before M&A: € - 2.5 bn t/o Customer Financing: € - 0.5 bn 11.1 Free Cash Flow before M&A and Customer Financing € - 2.1 bn 7.9 Net Cash Gross Cash Flow Change in Cash used for M&A Shareholder Pensions & Net Cash posit
Slide 10: H1 Results: Divisional Highlights
H1 Results Company Highlights Divisional Highlights Guidance Highlights 2017
Slide 11: Commercial Aircraft
COMMERCIAL AIRCRAFT 11 IN € MILLION H1 2017 H1 2016 Change Deliveries by programme (Units) Order Intake (net) 203 183 10.9% 10% 2% Units 10% Order Book 6,771 6,716 0.8% Order Intake (net) 30,272 32,302 -6.3% 78% Value Order Book 932,291 930,885 0.2% ● A320 ● A350 Deliveries (Units) 306 (1) 298 2.7%
Slide 12: Helicopters
HELICOPTERS 12 IN € MILLION H1 2017 H1 2016 Change External Revenue Split Order Intake (net) 151 127 18.9% Units Order Book 727 795 -8.6% 42% 58% Order Intake (net) 3,630 2,338 55.2% Value Order Book 11,996 11,421 5.0% ● Defence ● Civil Deliveries (Units) 190 163 16.6% Revenues 2,921 2,687 8.7% R&D
Slide 13: Defence and Space
DEFENCE AND SPACE 13 IN € MILLION H1 2017 H1 2016 Change External Revenue Split Order Intake (net) 3,616 5,189 -30.3% 32% Order Book 38,708 37,665 2.8% 68% Revenues 4,625 5,440 -15.0% R&D Expenses 144 152 -5.3% ● Platforms ● Services in % Revenues 3.1% 2.8% EBIT Adjusted 248 322 -23.0% in % Revenues
Slide 14: H1 Results: Guidance Highlights
H1 Results Company Highlights Divisional Highlights Guidance Highlights 2017
Slide 15: 2017 Guidance
2017 GUIDANCE 15 As the basis for its 2017 guidance, Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions Airbus 2017 earnings and FCF guidance is based on a constant perimeter Airbus expects to deliver more than 70
Slide 16: H1 Results
H1 Results sooenon 2017 AIRBUS
Slide 17: Expected Airbus Average Hedge Rates € vs. $
EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $ 17 Active exposure management 1.38 1.37 Average 1.36 Hedge Rates 1.35 1.34 FY 2016 1.32 1.34 1.33 1.33 FY 2017E 1.29 1.32 1.33 1.31 1.31 1.30 1.30 1.29 (1) 1.28 1.29 1.27 1.26 1.27 1.25 1.24 1.25 1.23 Q1 Q2 Q3 Q4 FY 2017 E FY 2016 (1) Q2 actual
Slide 18: H1 2017 Detailed Income Statement and Adjustments
H1 2017 DETAILED INCOME STATEMENT AND ADJUSTMENTS 18 IN € MILLION thereof Adjustments Impact on EBIT Financial H1 2017 H1 2017 Operational FX Result Adjusted Comm. a/c Defence and Space (1) and DS (2) EBIT 1,791 1,099 518 174 in % of revenues 6.2% 3.8% Interest income 81 81 Interest expenses (251) (
Slide 19: H1 2016 Detailed Income Statement and Adjustments
H1 2016 DETAILED INCOME STATEMENT AND ADJUSTMENTS 19 IN € MILLION thereof Adjustments Impact on EBIT Financial H1 2016 H1 2016 Operational HQ FX Result Adjusted Commercial Defence and Dassault Comm. a/c Aircraft Space (1) sale and DS (2) EBIT 1,851 1,679 (366) 179 868 (509) in % of revenues 6.4% 5.8
Slide 20: Q2 2017 Key Figures
Q2 2017 KEY FIGURES 20 IN € MILLION Q2 2017 Q2 2016 Order Intake 33,341 31,890 Revenues 15,721 16,572 EBIT Adjusted 859 1,181 EBIT 939 1,489 Net Income 895 1,362 FCF before M&A (948) (250) FCF before M&A and Customer Financing (824) 82 IN € MILLION Q2 2017 Q2 2016 Q2 2017 Q2 2016 Q2 2017 Q2 2016 Rev
Slide 21: Airbus: Strong Liquidity Position as at June 2017
AIRBUS: STRONG LIQUIDITY POSITION AS AT 30 JUNE 2017 21 € 3.0 bn Credit Facility: Credit Facility (RSCF) Maturity 2021, undrawn Fully committed by 40 banks No financial covenants, no MAC clause € 11.4 bn Financing Liabilities: Financing Liabilities of which long-term : € 9.8 bn Includes € 3.
Slide 22: Detailed Free Cash Flow
DETAILED FREE CASH FLOW 22 IN € MILLION H1 2017 H1 2016 Net Cash position at the beginning of the period 11,113 10,003 Gross Cash Flow from Operations (1) 1,282 1,251 Change in working capital (2) (3,139) (3,274) Cash used for investing activities (3) (99) 904 of which Industrial Capex (additions) (
Slide 23: Net Cash Position
NET CASH POSITION 23 IN € MILLION June 2017 Dec. 2016 Gross Cash 19,341 21,591 Financing Debts (11,442) (10,478) Short-term Financing Debts (1,678) (1,687) Long-term Financing Debts (9,764) (8,791) Reported Net Cash 7,899 11,113 Airbus non-recourse debt (58) (43) Net Cash excl. non-recourse 7,957 11
Slide 24: Customer Financing Exposure
CUSTOMER FINANCING EXPOSURE 24 IN € MILLION June 2017 Dec. 2016 June 2017 Dec. 2016 Commercial Aircraft Helicopters Closing rate € 1 = $ 1.14 $ 1.05 $ 1.14 $ 1.05 Total Gross Exposure 1,681 1,572 152 119 of which off-balance sheet 160 181 15 21 Estimated value of collateral (1,329) (1,157) (93) (60)
Slide 25: Airbus Commercial Aircraft Customer Financing
AIRBUS COMMERCIAL AIRCRAFT CUSTOMER FINANCING 25 IN $ BILLION Additions Sell Down Amortization Net change 1.5 1.5 1.0 1.0 0.9 0.9 0.9 0.8 0.8 0.7 Commercial Aircraft 0.6 0.5 0.6 0.5 0.6 0.6 0.4 0.3 Customer Financing Gross Exposure (0.3) (0.6) (0.5) (0.4) (0.7) (0.2) (0.2) (0.7) (0.7) (0.7) (0.7) (0
Slide 26: Balance Sheet Highlights: Assets
BALANCE SHEET HIGHLIGHTS: ASSETS 26 IN € MILLION June 2017 Dec. 2016 Non-current Assets 53,962 55,037 of which Intangible & Goodwill 11,679 12,068 of which Property, plant & equipment 16,550 16,913 of which Investments & Financial assets 5,738 5,263 of which positive hedge mark-to-market 1,405 893 o
Slide 27: Balance Sheet Highlights: Liabilities
BALANCE SHEET HIGHLIGHTS: LIABILITIES 27 IN € MILLION June 2017 Dec. 2016 Total Equity 9,044 3,652 of which OCI (Other Comprehensive Income) (276) (4,845) of which Non-controlling interests (5) (5) Non-current liabilities 48,188 50,789 of which pensions 8,043 8,342 of which other provisions 2,310 2,
Slide 28: Shareholding Structure as at June 2017
SHAREHOLDING STRUCTURE AS AT 30 JUNE 2017 28 Free Float 73.6% 4.2% 11.1% Shareholder Agreement 26.4% 11.1% SOGEPA 11.1% GZBV 11.1% 73.6% SEPI 4.2% Treasury shares 0.0% 774,467,480 shares issued as at 30 June 2017
Slide 29: Quarterly Order Intake Breakdown (Cumulative)
QUARTERLY ORDER INTAKE BREAKDOWN (CUMULATIVE) 29 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 1,153 4,311 30,272 32,302 63,103 114,938 Helicopters 1,417 1,004 3,630 2,338 3,588 6,057 Defence and Space (1) 1,521 2,515 3,616 5,189 8,189 15,393 HQ / Elim. (268) (
Slide 30: Quarterly Order Book Breakdown (Cumulative)
QUARTERLY ORDER BOOK BREAKDOWN (CUMULATIVE) 30 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 981,958 904,589 932,291 930,885 939,079 1,010,200 Helicopters 11,392 11,615 11,996 11,421 11,075 11,269 Defence and Space (1) 39,421 42,596 38,708 37,665 38,355 41,499
Slide 31: Quarterly Revenues Breakdown (Cumulative)
QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) 31 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 9,825 8,668 21,789 21,061 31,511 49,237 Helicopters 1,291 1,158 2,921 2,687 4,282 6,652 Defence and Space (1) 2,114 2,534 4,625 5,440 7,714 11,854 HQ / Elim. (242) (177)
Slide 32: Quarterly EBIT Breakdown (Cumulative)
QUARTERLY EBIT BREAKDOWN (CUMULATIVE) 32 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 336 289 1,078 420 773 1,543 Helicopters (2) 33 93 144 200 308 Defence and Space (1) 620 88 816 475 579 (93) HQ / Elim. (102) (48) (196) 812 804 500 Airbus 852 362 1,791 1,851
Slide 33: Quarterly EBIT Adjusted Breakdown (Cumulative)
QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE) 33 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 281 406 954 1,269 1,836 2,811 Helicopters (2) 33 93 144 200 350 Defence and Space (1) 63 107 248 322 436 1,002 HQ / Elim. (102) (48) (196) (56) (64) (208) Airbus 240
Slide 34: H1 2017 IFRS vs. APM Cash Flow Reconciliation
H1 2017 IFRS VS. APM CASH FLOW RECONCILIATION 34 IN € BILLION H1 17 IN € BILLION H1 17 Cash provided by (used for) operating activities (1.9) Cash provided by (used for) operating activities (1.9) t/o Reimbursement from / contribution to plan assets (0.1) Cash provided by (used for) investing activi
Slide 35: 2016 Quarterly EBIT before One-off to EBIT Adjusted Reconciliation
2016 QUARTERLY EBIT* BEFORE ONE-OFF TO EBIT ADJUSTED RECONCILIATION 35 IN € MILLION Q1 H1 EBIT* EBIT* Exceptionals EBIT Adjusted Exceptionals EBIT Adjusted before one-off before one-off Commercial Aircraft 407 (1) 406 1,270 (1) 1,269 Helicopters 33 0 33 144 0 144 Defence and Space 109 (2) 107 325 (3
Slide 36: Glossary on Alternative Performance Measures (APM)
GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM) 36 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