Airbus Se · EURONEXT:AIR
Airbus — Investor Presentation (October 2017)
20 slides from Airbus's investor presentation, Oct 4, 2017
Slide 1: Member States Shareholder Meeting
AIRBUS Member States Shareholder Meeting Toulouse 4 October 2017
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: Member States Shareholder Meeting: H1 Results 2017
Member States H1 Results 2017 Business Update Strategy Update Shareholder Meeting
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: 2017 Guidance
2017 GUIDANCE 10 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 11: 2017 Key Priorities
2017 KEY PRIORITIES 11 Focus on key programmes Drive innovation and digitalisation for the longer term to secure our future Work to secure EPS / FCF as platform to deliver 2018 / 2019 growth
Slide 12: Increasing Shareholder Returns
INCREASING SHAREHOLDER RETURNS 12 Total Shareholder Returns* ~ € 7 bn 2.4 FCF 1.7 in € bn € 8.4 bn 1.2 1.0 0.6 2.8 3.2 0.4 2.0 1.2 in € bn 2012 2013 2014 2015 2016 2017 ** Dividend Share Buyback (0.8) Dividend per Share 2012 2013 2014 2015 2016 1.35** 1.30 1.20 FCF FCF before M&A, before customer fi
Slide 13: Business Update
Member States H1 Results 2017 Business Update Strategy Update Shareholder Meeting
Slide 14: Business Update – A320, A350, A380
BUSINESS UPDATE – A320, A350, A380 14 A320 SA remains healthy: essentially sold out until 2022, which protects our ramp-up plans Deliveries end August: 310 A320 family delivered, t/o 76 A320/A321neo Neo ramp-up remains challenging. Customers are still experiencing a number of in- service engine issu
Slide 15: Business Update – A400M, H225, OneWeb, Brexit
BUSINESS UPDATE – A400M, H225, ONEWEB, BREXIT 15 A400M 10 a/c delivered end August 2017 Challenges remain; discussions with customers to de-risk the programme are ongoing Adjustment of production levels to absorb inventory H225 H225 ban lift announced by UK and Norway authorities Working with custom
Slide 16: Strategy Update
Member States H1 Results 2017 Business Update Strategy Update Shareholder Meeting
Slide 17: Airbus Strategy Update (1/2)
AIRBUS STRATEGY UPDATE (1/2) 17 Strategy Pillars Progress & Achievements R&T and Demonstrators to drive and deliver on Advanced Technology Innovation Roadmaps A^3 and Shenzhen to challenge and disrupt Airbus Ventures and BizLab to seize opportunities New commercial drone start-up Airbus Aerial in At
Slide 18: Airbus Strategy Update (2/2)
AIRBUS STRATEGY UPDATE (2/2) 18 Strategy Pillars Progress & Achievements Portfolio reshaping Profitability Largely completed the repositioning of our business in line with our strategy Defence Electronics divestment to KKR closed in February 2017 Value Creation In July 2017, we entered into exclusiv
Slide 19: Compliance
COMPLIANCE 19 Focus on compliance process, policies and organisation Self-disclosure of misstatements and omissions and full cooperation with authorities in investigations Independent Compliance Review Panel (ICRP) Airbus is committed to implement the most effective global standards
Slide 20: Driving Earnings and Cash Performance
DRIVING EARNINGS AND CASH PERFORMANCE 20 EPS Growth FCF Growth End of End of decade decade Cash Boost Conversion EPS Growth ~1 Performance A350 A400M* Turning Profitable A320 Capex Volume and Price Reduction FX Working Capital Hedging Impact Control End End 2017 2017 * A400M will continue to weigh s