Airbus Se · EURONEXT:AIR
Airbus — Berenberg USA Conference 2017
16 slides from Airbus's conference presentation, May 22, 2017
Slide 1: Q1 2017 Roadshow Presentation
AIRBUS Q1 2017 Roadshow Presentation Berenberg USA Conference 2017 Tarrytown, NY – May 22, 2017
Slide 2: Market Environment
MARKET ENVIRONMENT 2 Global Economy Interest Rates Foreign Exchange Oil and Gas World real GDP and passenger traffic March 2017 % (year-over-year) Passenger Traffic 14% 12% 10% +6.8% 8% 6% 4% 2% 0% -2% -4% World real GDP -6% -8% World passenger traffic (RPKs*) -10% JQ1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q
Slide 3: Long Term Demand for Aircraft
LONG TERM DEMAND FOR AIRCRAFT 3 2016-2035 demand for 33,070 aircraft Propensity to travel Bubbles proportional to country population 15 100% 13,5 75% Thousand aircraft 6,6 50% 5,8 25% 2,6 2,4 1,2 1,0 0 0% Asia Europe North Latin Middle CIS Africa Pacific America America East Asia Pacific Europe Nort
Slide 4: Q1 2017 Commercial Positioning
Q1 2017 COMMERCIAL POSITIONING 4 Airbus Order Book* Airbus External by Region (by value) Revenue Split by Division 10% 16% 5% 33% 13% 9% € 1,030 bn € 13 bn t/o defence € 37.7 bn t/o defence € 1.9 bn 18% 75% 21% ● Asia Pacific ● Middle East ● Commercial Aircraft ● Europe ● Latin America ● Helicopters
Slide 5: Backlog and Deliveries
BACKLOG AND DELIVERIES 5 Airbus backlog* well aligned with regional Over 10 years production in backlog needs and demand forecast in units April 2017 YtD Cancellation rate** of 0.3% 6 831 6 874 6 386 5 559 Europe North & CIS 4 682 Asia America 4 437 16% / 24% Pacific 9% / 18% Middle 29% / 41% 3 715
Slide 6: Interest Rates / Airline Financing
INTEREST RATES / AIRLINE FINANCING 6 Interest rates Financing Sources for Airbus Deliveries (in %) FY16 FY15 Manufacturer 6% 100% 1% 2% Capital Markets 90% 5% 6% 5% ECA 0% 7% 80% 4% 70% 49% 45% 3% 60% Lessor 50% 2% 40% 1% 30% 0% 20% Airline -1% 10% 45% 40% 2007 2008 2009 2010 2011 2012 2013 2014 201
Slide 7: Strong Product Portfolio – Focus on Ramp Up and Transition
STRONG PRODUCT PORTFOLIO – FOCUS ON RAMP UP AND TRANSITION 7 Product portfolio positioned to capture growth A320: Significant backlog supporting ramp-up plans to rate 60 in 2019; A320neo: Exceeding expectations but in-service issues to be resolved (GTF) A330: production well covered by backlog for t
Slide 8: FY 2016 Financial Performance and FY 2017 Guidance
FY 2016 FINANCIAL PERFORMANCE FY 2017 GUIDANCE 8 Revenues EBIT Adjusted 6,4% As the basis for its 2017 guidance, Airbus expects the 6,6% 5,9% world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions in € bn / RoS in € bn Airbus 2017 earni
Slide 9: Strong Liquidity Position as at December 2016
AIRBUS STRONG LIQUIDITY POSITION AS AT 31 DECEMBER 2016 9 € 3 bn Credit Facility: Credit Facility (RSCF) • Maturity 2021, undrawn • Fully committed by 40 banks • No financial covenants, no MAC clause Financing Liabilities: Short-term: € 1.7 bn Long-term: € 8.8 bn € 10.5 bn • Includes € 3.5 bn EMTN,
Slide 10: Driving Earnings and Cash Performance
DRIVING EARNINGS AND CASH PERFORMANCE 10 EPS Growth FCF Growth End of End of decade decade Capex Cash Boost Performance Conversion Reduction ~ 1x A350 Turning Working Capital profitable Control Business A320 Volume & Price Performance FX Hedging impact A400M* 2017 2017 EPS FCF before M&A * A400M wil
Slide 11: Key Priorities
KEY PRIORITIES 11 Deliver commercial aircraft ramp-up and transition De-risk A400M and strengthen programme execution Implement new organisation Invest in our future for improved efficiency and competitiveness ► Deliver EPS / FCF growth
Slide 12: Q1 Results
Q1 Fesults wwoenon AIRBUS
Slide 13: Q1 2017 Financial Performance
Q1 2017 FINANCIAL PERFORMANCE 13 Revenues EBIT Adjusted 4,1% in € bn / RoS (%) in € bn 13,0 1,8% 0,50 12,2 0,24 Q1 2016 Q1 2017 Q1 2016 Q1 2017 EPS(1) Adjusted FCF before M&A and Customer Financing (1,3) in € in € bn (2,7) 0,37 0,12 Q1 2016 Q1 2017 Q1 2016 Q1 2017 (1) Q1 2017 Average number of share
Slide 14: Q1 2017 Profitability
Q1 2017 PROFITABILITY 14 EBIT Performance Q1 2017 EBIT reported of € 0.9 bn 0,85 Q1 2017 Adjustments resulting from: €+ 560 m Defence Electronics net capital gain in € bn 0,50 €+ 55 m $ PDP mismatch / BS Revaluation 0,36 €- 3 m Other AD Portfolio 0,24 €+ 612 m Net Adjustments Q1 2016 Q1 2017 EBIT Ad
Slide 15: Currency Hedge Policy
CURRENCY HEDGE POLICY 15 IN $ BILLION Net Exposure ● Forward Sales as of Mar. 2017 ● Collars as of Mar. 2017 ● Forward Sales and Collars as of Dec. 2016 4,3 6,3 4,6 25,1 18,7 1,3 20,7 14,6 10,6 Average hedge rates 2017 2018 2019 2020 2021 remaining 9 months and beyond € vs $ 1.27 1.25 1.24 1.22 1.21
Slide 16: Q1 2017 Cash Evolution
Q1 2017 CASH EVOLUTION 16 IN € BILLION 0.1 0.5 -1.0 11,1 -0.3 -0.2 -0.3 Free Cash Flow before M&A and customer financing: -1.3 9,8 Net Cash Gross Cash Flow Change in Cash used for Customer M&A (4) Pensions & Net Cash position Dec. from Operations Working Capital investing Financing Others position M