Slide 1: 9m 2009 Earnings Conference Call
9m 2009 Earnings Conference Call, 16th November 2009 Hans Peter RING CFO
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: Contents
Contents 3 Group Highlights Financial Highlights Divisional Performance Guidance EADS – 9m 2009 earnings
Slide 4: Group Highlights: 9m 2009
Group Highlights: 9m 2009 4 Business update • Challenging commercial environment but signs of stabilisation; • Proactive order book management : order book € 378 bn at end September 09; • Delivery patterns continue to be strong across all businesses; • Completion of Eurofighter negotiation - Tranche
Slide 5: Programme update
Programme update 5 A400M • Flight Test Bed complete – 18 flights completed, 55 flight hours; • First Flight expected around the end of the year; good progress on first flight preparation but technical and contractual uncertainties persist; • Negotiations ongoing; early stage accounting retained*: –
Slide 6: Contents
Contents 6 Group Highlights Financial Highlights Divisional Performance Guidance EADS – 9m 2009 earnings
Slide 7: 9m 2009 Financial Highlights
9m 2009 Financial Highlights 7 in € bn 9m 2009 9m 2008 Change Revenues 29.7 29.4 +1% of which Defence 7.0 7.3 -5% EBIT* before one-off 1.7 2.6 -35% Order intake 24.6 88.7 -72% in €bn Sept. 2009 Dec. 2008 Change Total Order book** 378.0 400.2 -6% of which Defence 54.9 54.9 +0% • Decrease in EBIT* bef
Slide 8: 9m 2009 EBIT Before One-off
9m 2009 EBIT* Before One-off 8 EADS Airbus in € bn Group Segment EBIT* before one-off 2009 (see slide 23 for 2008 detail). 1.66 1.09 % Revenues (excl. A400M early stage revenues € 0.4 bn) 5.7% 5.5% One off impacts: • Impact of A400M Early Stage Accounting ** (0.12) (0.12) • Revaluation of all Loss M
Slide 9: 9m 2009 Profit & Loss Highlights
9m 2009 Profit & Loss Highlights 9 9m 2009 9m 2008 in % of in % of €m Revenues €m Revenues EBIT* 1,089 3.7% 2,018 6.9% Self-financed R&D** 1,834 6.1% 1,792 6.0% EBIT* before R&D 2,923 9.8% 3,810 12.9% Interest result (89) (0.3%) 10 0% Other financial result (526) (1.8%) (328) (1.1%) Taxes (140) (0.5
Slide 10: Currency Hedge Policy
Currency Hedge Policy 10 • Approximately 50% of EADS’ US$ revenues naturally hedged by US$ procurement; • In 9m 2009 hedges of $ 12.0 bn* matured at an average hedge rate of € 1 = $ 1.24; • In 9m 2009, new forward contracts of $ 11.9 bn** were added at an average rate of € 1= $ 1.36. EADS hedge port
Slide 11: Free Cash Flow
Free Cash Flow 11 in € m 9m 2009 9m 2008 Net cash position at the beginning of the period 9,193 7,024 Gross Cash Flow from Operations* 1,820 2,347 Change in working capital (1,838) 721 of which Customer Financing (290) 8 Cash used for investing activities** (1,164) (1,201) of which Industrial Capex
Slide 12: Contents
Contents 12 Group Highlights Financial Highlights Divisional Performance Guidance EADS – 9m 2009 earnings
Slide 13: Airbus Segment
Airbus Segment 13 Airbus Segment (after interco elimination) thereof Airbus Commercial thereof Airbus Military (incl. EFW) (Former MTA) €m 9m 2009 9m 2008 9m 2009 9m 2008 9m 2009 9m 2008 Deliveries 358 349 10 11 Revenues 20,193 20,565 19,185 19,516 1,637 1,949 R&D self-financed** 1,473 1,468 1,463 1
Slide 14: Airbus Segment
Airbus Segment 14 Airbus Commercial Revenues stable EBIT* • Higher volume vs. 2008: +6 SA; +4 LR; -1 A380; • Higher volumes, lower programme charges and Power 8 • Lower A400M revenues; more than offset by: • Price deterioration (€ -0.3 bn). – Negative impact from fx effects (€ - 1.4 bn) see slide 22
Slide 15: Eurocopter
Eurocopter 15 €m 9m 2009 9m 2008 Revenues +9% • 392 deliveries in 9M 09 versus 404 in 9M 08, including 9 Revenues 3,039 2,781 NH90, 3 Tiger; R&D self-financed 107 89 • Favourable mix in serial activities; in % of revenues 3.5% 3.2% • Increase in customer services activities. EBIT* 165 164 in % of re
Slide 16: Astrium
Astrium 16 €m 9m 2009 9m 2008 Revenues +17% • Revenue increase across all businesses; Revenues 3,228 2,749 • Non-operational catch-up effect for in-orbit R&D self-financed 52 56 incentive schemes on commercial telecommunication in % of revenues 1.6% 2.0% satellites (€ +0.2 bn). EBIT* 155 140 in % of
Slide 17: Defence & Security
Defence & Security 17 €m 9m 2009 9m 2008 Revenues • Revenue growth from Eurofighter and Plant CML Revenues 3,296 3,490 consolidation almost compensates the aerostructures carve-out to Premium Aerotec (€ -0.3bn). R&D self-financed 138 117 in % of revenues 4.2% 3.4% • 2008 figures not restated. EBIT*
Slide 18: Other Businesses
Other Businesses 18 Overall €m 9m 2009 9m 2008 • Perimeter changes: – EFW in Airbus segment, 2008 figures restated; Revenues 723 958 – 30% of Socata now accounted for at equity R&D self-financed 3 7 revenue impact ( € -0.2bn). 2008 figures are not in % of revenues 0.4% 0.7% restated; EBIT* 3 33 – Re
Slide 19: Contents
Contents 19 Group Highlights Financial Highlights Divisional Performance Guidance EADS – 9m 2009 earnings
Slide 20: 2009 and 2010 Outlook
2009 and 2010 Outlook 20 New orders • Despite a challenging market, target of up to 300 new gross orders at Airbus maintained. Revenues • Airbus deliveries around 490; • Using € 1 = $ 1.39 (used in the previous guidance) as the average spot rate, EADS 2009 revenues should be roughly in line with the
Slide 21: Appendix
Appendix
Slide 22: 9m 2009 Forex EBIT Impact Bridge
9m 2009 Forex EBIT* Impact Bridge 22 Forex impact on EBIT* ( in € bn ) BRIDGE • Revaluation of Airbus LMC provisions (0.3) * • Temporary excess volume of hedging from 2008 (0.1) • Deterioration of hedge rates (€ : $ 1.17 to 1.24) (0.6) out of which Airbus ~(0.55) • Other one-off forex effect includi
Slide 23: 9m 2008 EBIT Before One-off
9m 2008 EBIT* Before One-off 23 EADS Airbus in € bn Group Segment EBIT* before one-off 2008 2.57 1.87 ** One off impacts: • Reassessment of A400M charge*** (0.34) (0.20) thereof former MTA € - 43m • A380 LMC provision (0.82) (0.82) • Revaluation of all Loss Making Contracts at closing spot 0.27 0.27
Slide 24: 9m 2009 Financial Highlights
9m 2009 Financial Highlights 24 9m 2009 9m 2008 in % of in % of €m Revenues €m Revenues Revenues 29,723 29,440 self-financed R&D** 1,834 6.1% 1,792 6.0% EBITDA* 2,283 7.7% 3,143 10.7% EBIT* 1,089 3.7% 2,018 6.9% EBIT* before R&D 2,923 9.8% 3,810 12.9% Net income 291 1.0% 1,082 3.7% EPS*** € 0.36 € 1
Slide 25: EADS Shareholding structure
Shareholding structure 25 Contractual Partnership Free float SOGEADE SEPI Daimler Lagardère & incl. Minor direct holdings: French French State: 0.06% State Treasury shares 0.38% 22.5% 5.5% 22.5%* 50.5% 49.5% as at 30th Sept. 2009 EADS * On February 9, 2007, Daimler reached an agreement with a consor
Slide 26: Expected EADS Average Hedge Rates € vs. $
Expected EADS Average Hedge Rates € vs. $ 26 1.40 1.34 1.29 1.30 1.27 1.25 1.19 1.20 1.21 1.22 1.18 1.17 1.15 1.10 2008 Average FY 2008 2009e Average FY 2009e 1.00 Q1 Q2 Q3 Q4 FY EADS – 9m 2009 earnings
Slide 27: Airbus Customer Financing
Airbus Customer Financing 27 Active exposure management Additions and Disposals Net Exposure fully 2.5 to Airbus customer financing gross exposure in $ bn provisioned Additions Sell Down Amortisation 1.5 1.4 Gross Net 0.5 0.5 1.5 1.5 1.0 0.9 0.8 0.3 0.3 Exposure Exposure 0.6 0.4 (0.9) (0.7) (1.3) (1
Slide 28: Customer Financing Exposure
Customer Financing Exposure 28 in € m Sept. 2009 Dec. 2008 Closing rate € 1 = $ 1.46 $ 1.39 100% AIRBUS Total Gross exposure 1,122 1,052 of which off-balance sheet 335 369 Estimated value of collateral (595) (476) Net exposure 527 576 Provision and asset impairment (527) (576) AIRBUS Net exposure af
Slide 29: Q3 2009 Key Figures
Q3 2009 Key Figures 29 in € bn Q3 2009 Q3 2008 Revenues 9.5 9.7 EBIT* 0.2 0.9 FCF before customer financing** 0.1 1.0 New orders 7.4 37.5 Revenues EBIT* in €m Q3 2009 Q3 2008 Q3 2009 Q3 2008 Airbus 6,242 6,425 4 754 Eurocopter 1,131 986 66 60 Astrium 1,034 1,048 56 52 DS 1,135 1,323 77 85 HQ & Other
Slide 30: EBIT Calculation
EBIT* Calculation 30 in € m 9m 2009 9m 2008 EBIT* 1,089 2,018 Exceptionals: Disposal (fixed assets in other income) (1) (1) Fair value depreciation (38) (34) Profit before finance cost 1,050 1,983 and income taxes * Pre goodwill impairment and exceptionals EADS – 9m 2009 earnings
Slide 31: Net Income pre-exceptionals
Net Income pre-exceptionals 31 in € m 9m 2009 9m 2008 Net income* 318 1,107 EPS* (1) € 0.39 € 1.37 Exceptionals: Fair value adjustment (39) (35) Related tax impact 12 10 Net income 291 1,082 EPS (1) € 0.36 € 1.34 * pre goodwill impairment and exceptionals; the term “exceptionals” refers to such item
Slide 32: Net Cash Position
Net Cash Position 32 in € m Sept. 2009 Dec. 2008 Sept. 2008 Gross cash 13,159 13,697 12,927 Financing Debts Short-term Financing Debts* (2,226) (1,458) (962) Long-term Financing Debts (2,874) (3,046) (3,009) Reported Net cash 8,059 9,193 8,956 Airbus non-recourse debt 627 737 755 Net cash excl. non-
Slide 33: EADS: Strong Liquidity Position
EADS: Strong Liquidity Position 33 as at 30th Sept. 2009 • Maturity 2012 € 3.0 bn • Undrawn • Fully committed by 36 banks Credit Facility • No financial covenants • No MAC clause € 5.1 bn EMTN progamme • Long term rating : A1 / BBB+ Financing Liabilities • CDS in line with its rating/sector (incl. €
Slide 34: Balance Sheet Highlights: Assets
Balance Sheet Highlights: Assets 34 in € m Sept. 2009 Dec. 2008 Non-current Assets 37,723 35,924 of which Intangible & Goodwill 11,101 11,171 of which Property, plant & equipment 12,351 12,156 of which Investments & Financial assets 4,457 4,068 of which positive hedge mark-to-market 1,688 1,101 of w
Slide 35: Balance Sheet Highlights: Liabilities
Balance Sheet Highlights: Liabilities 35 in € m Sept. 2009 Dec. 2008 Total Equity 12,566 11,126 of which OCI (Other Comprehensive Income) 3,256 1,758 of which Non-controlling interests 110 104 Total Non-current liabilities 27,838 28,302 of which pensions 4,732 4,335 of which other provisions 3,123 3
Slide 36: Quarterly Revenues Breakdown (cumulative)
Quarterly Revenues Breakdown 36 (cumulative) in € m Q1 H1 9m FY 2009 2008 2009 2008 2009 2008 2009 2008 Airbus segment 5,883 7,430 13,951 14,140 20,193 20,565 . 28,991 Thereof Airbus Core* 5,559 7,057 13,345 13,586 19,130 19,445 . 27,453 Thereof Airbus Military 456 636 855 898 1,637 1,949 . 2,759 Eu
Slide 37: Quarterly EBIT Breakdown (cumulative)
Quarterly EBIT* Breakdown 37 (cumulative) in € m Q1 H1 9m FY 2009 2008 2009 2008 2009 2008 2009 2008 Airbus segment 89 635 519 710 523 1,464 . 1,815 Thereof Airbus Core** 88 628 549 712 520 1,501 . 1,790 Thereof Airbus Military (5) (1) (36) (20) (5) (68) . (16) Eurocopter 38 37 99 104 165 164 . 293
Slide 38: Quarterly Order-intake Breakdown (cumulative)
Quarterly Order-intake Breakdown 38 (cumulative) in € m Q1 H1 9m FY 2009 2008 2009 2008 2009 2008 2009 2008 Airbus segment 1,792 35,286 6,194 44,094 11,335 78,991 . 85,493 Thereof Airbus Core* 1,662 31,488 6,015 41,069 10,464 75,179 . 82,041 Thereof Airbus Military 164 3,836 247 4,209 1,049 5,100 .
Slide 39: Quarterly Order-book Breakdown (cumulative)
Quarterly Order-book Breakdown 39 (cumulative) in € m Q1 H1 9m FY 2009 2008 2009 2008 2009 2008 2009 2008 Airbus segment 365,412 305,557 343,584 308,272 332,035 355,448 . 357,824 Thereof Airbus Core* 352,899 219,116 331,320 294,790 319,545 341,630 . 344,818 Thereof Airbus Military 21,999 23,063 21,6