Slide 1: Airbus H1 2018 Roadshow Presentation
AIRBUS H1 2018 Roadshow Presentation July 2018
Slide 2: H1'18 Highlights
H1’18 HIGHLIGHTS 2 Robust commercial aircraft environment Backlog of ~7,200 a/c underpins ramp-up plans H1 financials reflect mainly A350 performance and delivery phasing Focus on securing ramp-up 2018 Guidance maintained
Slide 3: Airbus at a Glance – As of FY 2017 As Reported
AIRBUS AT A GLANCE – AS OF FY 2017 AS REPORTED 3 Deliveries by Programme (units) Airbus 2% 11% Passenger Aircraft, 9% Airbus External Revenue Freighter Conversion, by Division Services 78% A320 A330 16% A350 A380 Helicopters External Revenue Split 9% € 67 bn Civil/Parapublic and t/o defence € 9.9 bn
Slide 4: H1 2018 Roadshow Presentation
H1 2018 Roadshow Market Product H1 2018 Presentation Demand Portfolio Review
Slide 5: Air Traffic and Long Term Fundamentals Remain Strong
AIR TRAFFIC AND LONG TERM FUNDAMENTALS REMAIN STRONG 5 3.0% 81.4% Record GDP growth Load factor 7.6% +300 8th RPK growth million passengers year of impressive airline profitability Source: ICAO, IATA, WTO, IHS Economics, Airbus GMF 2018
Slide 6: World Fleet Will More Than Double Over the Next 20 Years
WORLD FLEET WILL MORE THAN DOUBLE OVER THE NEXT 20 YEARS 6 XL (4%) L (5%) M (15%) ~70% Growth S (76%) ~30% ~21k Replace ~50% ~37k Fleet in Total New service Stay Deliveries 2018 2037 Notes: Passenger aircraft (≥ 100 seats) | Jet freight aircraft (>10 tons), Rounded figures to the nearest 10 – Assumi
Slide 7: Long-Term Growth Fuelled by Middle-Class Expansion in Emerging Economies
LONG-TERM GROWTH FUELLED BY MIDDLE-CLASS EXPANSION IN 7 EMERGING ECONOMIES 2017 Trips per capital - Bubble size proportional to population Advanced 10 Developing Emerging 1 0 10 20 30 40 50 60 70 80 2017 real GDP per capita* 0.1 0.01 Source: Sabre, IHS Economics, Airbus GMF 2018 Equivalent amount of
Slide 8: H1 2018 Roadshow Presentation
H1 2018 Roadshow Market Product H1 2018 Presentation Demand Portfolio Review
Slide 9: Investments to Prepare the Future and Capture Growth
INVESTMENTS TO PREPARE THE FUTURE AND CAPTURE GROWTH 9 2012 - 2017 € 19 bn € 17 bn € 5 bn R&D CapEx Working Capital (1) ~ € 40 bn Comprehensive product family and ramp-up capability (1) Mainly investment in inventory partly offset by PDPs
Slide 10: The Most Comprehensive Commercial Aircraft Family
THE MOST COMPREHENSIVE COMMERCIAL AIRCRAFT FAMILY… 10 Capacity XL L M S Range Product position is illustrative
Slide 11: Well Positioned Across All Market Segments
…WELL POSITIONED ACROSS ALL MARKET SEGMENTS 11 XL M L S Airbus Backlog 54% 88% 52% % 35% share Source: Flight Global – Ascend, Airbus | Passenger a/c backlog as of end 2017 | Includes all manufacturers
Slide 12: Robust Commercial Aircraft Environment
ROBUST COMMERCIAL AIRCRAFT ENVIRONMENT 12 Backlog O&D 8,000 1,600 7,000 1,400 6,000 1,200 5,000 1,000 4,000 800 3,000 688 718 600 626 629 635 588 2,000 498 510 534 400 453 483 434 378 1,000 320 200 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Book-to-bill 1.1 2.8 1.8 3.0
Slide 13: Helicopters: Market and Product Positioning
HELICOPTERS: MARKET AND PRODUCT POSITIONING 13 CIVIL & PARAPUBLIC MILITARY AIRCRAFT Demand impacted by softness in O&G Military market supported by growing Defence MARKET budgets LT market potential: ~ 22k new h/c in next 20 years Successful campaigns in 2016 UAM new market Product renewal strategy:
Slide 14: Defence and Space: Market and Product Positioning
DEFENCE AND SPACE: MARKET AND PRODUCT POSITIONING 14 MILITARY AIRCRAFT SPACE SYSTEMS CIS / UAS / OTHERS MARKET Geopolitical instability Growth in space spending Big data / analytics / digital Growth in defence spending More connected world Cyber protection Increasing need for security Increasing nee
Slide 15: Leveraging Digital in All Areas of Our Business
LEVERAGING DIGITAL IN ALL AREAS OF OUR BUSINESS 15 Skywise Data exploitation Connectivity Driving further industrial efficiency Improving reliability of assets in use for customer benefit Generating new business opportunities
Slide 16: H1 2018 Roadshow Presentation
H1 2018 Roadshow Market Product H1 2018 Presentation Demand Portfolio Review
Slide 17: Key Priorities
KEY PRIORITIES 17 Deliver ~800 a/c in 2018, prepare further ramp-up potential Leverage competitive product portfolio to strengthen market position Boost efficiency and competitiveness through digital and innovation Deliver EPS and FCF growth potential Earnings and FCF taking off!
Slide 18: Key Programme Update
KEY PROGRAMME UPDATE 18 • 120 orders since closing July 1st A220 • A220 to be consolidated from Q3’18 • A320 ramp-up to rate 60 by mid-2019 ongoing A320 • Neo engine deliveries resumed in Q2. H2 recovery plan in place. Challenges remain • Feasibility study to R70+ ongoing • A330neo EIS expected by e
Slide 19: H1 2018 Financial Performance
H1 2018 FINANCIAL PERFORMANCE 19 Revenues EBIT Adjusted in € bn in € bn / RoS (%) 4.7% 25.2 2.2% 25.0 1.2 0.6 H1 2017 H1 2018 H1 2017 H1 2018 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn 0.96 H1 2017 H1 2018 0.32 H1 2017 H1 2018 (2.1) (4.0) (1) H1 2018 Average number of shares:
Slide 20: H1 2018 Profitability
H1 2018 PROFITABILITY 20 EBIT Performance in € bn H1 2018 EBIT Reported of € 1.1 bn H1 2018 Adjustments resulting from: €- 98 m A400M provision 1.2 1.2 1.1 €- 21 m First H160s 0.6 €- 40 m PDP mismatch / BS revaluation €- 40 m Compliance / Others EBIT Adjusted EBIT Reported €+ 157 m Airbus DS perimet
Slide 21: Currency Hedge Policy
CURRENCY HEDGE POLICY 21 IN $ BILLION Forward Sales as of June 2018 Collars as of June 2018 2.8 Forward Sales and Collars as of Dec. 2017 4.6 12.7 1.7 22.6 19.1 11.6 13.3 4.7 2018 2022 Average hedge rates remaining 6 months 2019 2020 2021 and beyond 1.20 1.24 1.23 1.24 1.26 € vs $ Forwards/Collars (
Slide 22: H1 2018 Cash Evolution
H1 2018 CASH EVOLUTION 22 IN € BILLION 1.2 0.3 -4.5 -0.8 Free Cash Flow before M&A : € - 4.1 bn -1.2 t/o Customer Financing: € - 0.1 bn -0.3 13.4 Free Cash Flow before M&A and Customer Financing € - 4.0 bn 8.1 Net Cash Gross Cash Flow Change in Cash used for M&A Shareholder Shareholder Pensions & Ne
Slide 23: 2018 Guidance
2018 GUIDANCE 23 As the basis for its 2018 guidance, Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions Airbus 2018 Earnings and guidance are prepared under IFRS 15 Airbus 2018 Earnings and FCF guidance is before
Slide 24: H1 2018 Financial Performance
H1 2018 FINANCIAL PERFORMANCE 24 Revenues EBIT Adjusted in € bn in € bn 5.2 A220 ~ € -0.2 bn* 66.6 66.8 4.3 5.0 4.0 25.0 688 a/c 718 a/c 303 a/c ~ 800 a/c 1.2 FY 2016 FY 2017 H1 2018 2018 FY 2016 FY 2017 H1 2018 2018 Guidance Guidance FCF before M&A and Customer Financing in € bn Similar level A220
Slide 25: Commitment to Cash Generation & Shareholder Returns
COMMITMENT TO CASH GENERATION & SHAREHOLDER RETURNS 25 2012 - 2017 € 40 bn € 12 bn € 9 bn FCF Shareholder Investment Return(2) generation(1) Dividend per Share 1.50 1.30 1.35 1.20 0.75 0.60 105% 39% 40% 40% 38% 40% (3) 2012 2013 2014 2015 2016 2017 Financial flexibility protected: Net Cash of € 14 b
Slide 26: Deliver EPS & FCF Growth Potential
DELIVER EPS & FCF GROWTH POTENTIAL 26 2017 - 2020 EPS FCF Future Growth Growth Growth Potential Boost A350 Performance EPS Growth Benchmark margin A350 A320 Turning Profitable Rate potential A400M* 2020+ A320 Boost Volume and Price Competitiveness Working Capital FX Investment in Control Hedging Imp