Slide 1: Q1 2007 Earnings
Q1 2007 Earnings Hans Peter Ring COO for Finance Conference Call, 10th May 2007 1 Safe Harbor Statement Certain of the statements contained in this document are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on management‘s b
Slide 2: Q1 2007 Key business achievements
Content Group Business & Financial Highlights Divisional Performance Outlook and Conclusion 3 Q1 2007 Key business achievements Airbus • Commercial momentum: 134 gross orders booked • A380: on track for Singapore delivery in October • A350 : programme organisation in place Military Transport Aircraf
Slide 3: Power8 Project Plan; Q1 2007 Financial Highlights
Power8: Project Plan Moving Forward Recent and Ongoing Work • Programme management set-up • Information of works councils, first steps of overhead reduction process underway • Definition and implementation of quick wins • Preparation of strategic decisions for structural modules • Definition of indi
Slide 4: Q1 2007 Financial Highlights and EBIT bridge
Q1 2007 Financial Highlights Q1 2007 Q1 2006 in % of in % of € m Revenues € m Revenues EBIT* 89 1.0% 791 8.7% self-financed R&D** 550 6.1% 536 5.9% EBIT* before R&D 639 7.1% 1,327 14.6% Interest result (31) (0.3%) (29) (0.3%) Other financial result (69) (0.8%) (33) (0.4%) Taxes 16 0.2% (215) (2.4%)
Slide 5: Development of Net Cash; Currency Hedge Policy
Development of Net Cash in € m Q1 2007 Q1 2006 Net cash position at the beginning of the period 4,229 5,489 Gross Cash Flow from Operations* 1,147 835 Change in working capital (1,603) (603) Cash used for investing activities** (359) 131 of which Industrial Capex (additions) (502) (501) of which Cus
Slide 6: Airbus divisional performance
Contents Group Financials Divisional Performance Outlook and Conclusion 11 Airbus €m Q1 2007 Q1 2006 • Revenues up 4% • Driven by SA deliveries but mitigated Deliveries 115 101 by less A400M milestones & dollar Revenues 6,606 6,362 impact (-€300m) R&D self-financed** 467 449 • EBIT: dragged down by
Slide 7: MTA and Eurocopter
MTA • Revenues and EBIT* €m Q1 2007 Q1 2006 • Reduction of A400M milestones. Revenues None recognized this quarter vs. 2 in Q1 133 822 06 (including M7) R&D self-financed 4 3 in % of revenues 3.0% 0.4% • A400M EBIT* (13) 9 • First horizontal tail plane, wings set and in % of revenues 1.1% centre win
Slide 8: Astrium and Defence & Security
Astrium • Revenues up 28% €m Q1 2007 Q1 2006 • Driven by ramp-up in Paradigm Revenues services, Ariane 5 production and 629 493 higher ballistic missiles sales R&D self-financed 12 12 in % of revenues 1.9% 2.4% • EBIT* already positive in Q1 EBIT* 10 1 • Driven by volume and increasing in % of reven
Slide 9: Other Businesses
Other Businesses • Sogerma €m Q1 2007 Q1 2006 • Disposal of maintenance business: revenues impact €(48)M; EBIT* impact Revenues 282 330 €13m R&D self-financed 2 2 • Improved profitability of the remaining in % of revenues 0.7% 0.6% business EBIT* 20 (4) in % of revenues 7.1% • ATR • Market still boo
Slide 10: Guidance 2007
Guidance 2007 • Revenues: low single digit decrease assuming an exchange rate of 1.30 US$ per €. • Airbus deliveries in 2007: 440 - 450 aircraft • EADS 2007 budget EBIT* roughly stable compared to 2006 • Airbus 2007 EBIT* negative because of Power8, A350XWB launch charges, higher R&D and dollar impa
Slide 11: EADS Profit & Loss Highlights
Profit & Loss Highlights Q1 2007 Q1 2006** FY 2006 in % of in % of in % of €m Revenues €m Revenues € m Revenues Revenues 8,984 9,083 39,434 self-financed R&D*** 550 6.1% 536 5.9% 2,458 6.2% EBITDA 525 5.8% 1,119 12.3% 2,033 5.2% EBIT* 89 1.0% 791 8.7% 399 1.0% EBIT* before R&D 639 7.1% 1,327 14.6% 2
Slide 12: Expected Average Hedge Rates; Airbus Customer Financing
Expected EADS Average Hedge Rates € vs. $ 1.30 1.21 1.19 1.20 1.18 1.11 1.15 1.10 1.12 1.10 1.13 1.09 1.08 1.00 Q1 Q2 Q3 Q4 FY 2007e 2006 Average FY 2007e Average FY 2006 23 Airbus Customer Financing Active exposure management Additions and Disposals to Airbus customer financing gross exposure in $
Slide 13: Customer Financing Exposure; EBIT Calculation
Customer Financing Exposure € millions March 2007 Dec. 2006 closing rate 1 € = $ 1.33 $ 1.32 100% AIRBUS Total Gross exposure 1,346 1,399 of which off-balance sheet 448 483 Estimated value of collateral (498) (521) Net exposure 848 878 Provision and asset impairment (848) (878) AIRBUS Net exposure a
Slide 14: Restructuring items in EBIT; Net Loss pre-exceptionals
Restructuring items included in EBIT* in €m Q1 2007 Q1 2006 EBIT* 89 791 EBIT* margin (% of revenues) 1.0% 8.7% EADS EBIT* includes the following items Airbus Restructuring (688) 0 DS Restructuring (14) (50) * pre goodwill impairment and exceptionals 27 Net Loss / Income pre-exceptionals in € m Q1 2
Slide 15: Net Cash Position; Balance Sheet Assets
Net Cash Position in €m March 2007 March 2006 Dec. 2006 Gross cash 8,720 10,724 9,986 Financial Debts Short-term Financial Debts (1,761) (805) (2,196) Long-term Financial Debts (3,459) (4,027) (3,561) Reported Net cash 3,500 5,892 4,229 Airbus non-recourse debt 1,018 1,189 1,058 Net cash excl. non-r
Slide 16: Balance Sheet Liabilities; Quarterly Revenues Breakdown
Balance Sheet Highlights: Liabilities in € m March 2007 Dec. 2006 Total Equity 12,796 13,152 of which OCI (Other Comprehensive Income) 4,615 4,955 of which Minority interests 139 137 Total Non-current liabilities 27,874 27,769 of which pensions 5,685 5,602 of which negative hedge mark-to-market 198
Slide 17: Quarterly EBIT and Order-intake Breakdown
Quarterly EBIT* Breakdown (cumulative) Q1 H1 9m FY in €m 2007 2006 2007 2006 2007 2006 2007 2006 Airbus (69) 684 . 1,497 . 1,150 . (572) MTA (13) 9 . 6 . 22 . 75 Eurocopter 33 28 . 88 . 131 . 257 Astrium 10 1 . 38 . 48 . 130 DS (6) 39 . 104 . 160 . 348 HQ & others 134 30 . (79) . (85) . 161 of which
Slide 18: Quarterly Order-book Breakdown
Quarterly Order-book Breakdown March June Sept. Dec. in €m 2007 2006 2007 2006 2007 2006 2007 2006 Airbus 206,372 197,033 . 183,542 . 183,758 . 210,115 MTA 20,307 20,786 . 20,480 . 20,143 . 20,337 Eurocopter 12,975 10,251 . 10,209 . 11,422 . 11,042 Astrium 12,543 11,909 . 11,868 . 12,504 . 12,263 DS