Slide 1: Q3 2002 results: On-track for Year-End Profitability and Cash targets
Q3 2002 results : On-track for Year-End Profitability and Cash targets Analysts conference call - Hans-Peter Ring, CFO November 14th, 2002 1
Slide 2: Welcome from new CFO and new Head of IR
Welcome from new CFO and new Head of IR Hans-Peter Ring EADS CFO and Executive Committee member Pierre de Bausset EADS Investor Relations, Senior Vice-President 2
Slide 3: Business Highlights from June 2002
Business Highlights from June 2002 • Airbus: 219 delivered aircraft at Sept; on track for 300 at YE 43 new orders in Q3; 2 new clients EasyJet MOU in October for 120 a/c + options • Defence: Taurus contract on Q3 with Germany : € 0.5 bn MTA selected in November with Brazil : € 0.6 bn Continuing dela
Slide 4: easyJet deal: Key financial features
easyJet deal : Key financial features • Cash transaction : no customer financing • Progressive and significant customer advance payment schedule • Short-term deliveries: starting already in 2003 • Enhance EBIT margin from the first deliveries • 2 additional aircraft in production per month from 2004
Slide 5: 9-month 2002 Financial Milestones
9-month 2002 Financial Milestones • Revenues at € 20 bn on track with plan (-3.3 % from 2001 reflecting lower deliveries and weakened dollar) • EBIT and R&D : in line with plan; 2002 EBIT enhanced guidance confirmed at €1.4 bn • Cash management : on track for year-end guidance with positive net cash
Slide 6: 9-month 2002 Financial Highlights
9-month 2002 Financial Highlights €m 9-mth 2002 9-mth 2001 Change Revenues 19,996 20,685 (3%) EBIT* 1,013 1,123 (10%) EPS* € 0.61 € 0.79 (23%) Free Cash Flow** (622) 445 Sept 30, 2002 Dec 31, 01 Change Net Cash position 670 1,533 (56%) Total Order-Book 176,569 183,256 (4%) * pre-goodwill and excepti
Slide 7: A380 ramp up
A380 ramp up Self-financed R&D expensed by quarter in € m 650 628 445 473 480 412 403 450 356 250 150 154 193 93 101 126 64 50 Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002 Q3 2002 A380 R&D EADS total R&D Capex by quarter in € m 904 1000 704 626 507 500 330 383 258 175 230 190 30 50 70 150 0 … On
Slide 8: 9-month 2002 Order intake and Order-Book
9-month 2002 Order intake and Order-Book Order Intake Order-Book in € m 9-mth 2002 from Sept 01 9-mth 2002 from Dec. 01 Airbus 15,446 (62%) 148,898 (5%) MTA 290 (64%) 1,258 (5%) Aeronautics 3,171 (11%) 13,529 (1%) Space 1,068 27% 3,445 (9%) DCS 2,720 41% 9,953 9% HQ/Eliminations (354) (514) Total EA
Slide 9: 9-month 2002 Revenues and EBIT
9-month 2002 Revenues and EBIT Revenues EBIT* €m 9-mth 2002 from 01 9-mth 2002 9-mth 2001 Airbus 13,750 (5)% 1,072 1,131 MTA 310 1% (79) (12) Aeronautics 3,363 6% 132 144 Space 1,389 (10)% (101) (8) DCS 1,874 (8)% (91) (163) HQ/Eliminations (690) 14% 80 31 Total EADS 19,996 (3)% 1,013 1,123 * pre-go
Slide 10: Restructuring, write-off and disposal items included in EBIT*
Restructuring, write-off and disposal items included in EBIT* €m 9-mth 2002 9-mth 2001 EADS EBIT* 1,013 1,123 EBIT* margin (% of revenues) 5.1% 5.4% EADS EBIT* includes the following items Airbus Aircelle disposal gain 63 MTA Inventory depreciation (54) Space Risk program provision (101) Asset depre
Slide 11: Profit & loss highlights
Profit & loss highlights 9-mth 2002 9-mth 2001 €m % Revenues €m % Revenues Revenues 19,996 20,685 Self-Financed R&D 1,356 6,8% 1,213 5,9% EBITDA* 2,134 10,7% 2,245 10,9% EBIT* 1,013 5,1% 1,123 5,4% Interest (77) (0,4%) 68 0,3% Net Income* 493 2.5% 638 3,1% Net Income 23 0,1% 2,282 11,0% * pre-goodwi
Slide 12: Development of net cash over 9-month
Development of net cash over 9-month € million 9-mth 2002 9-mth 2001 Net Cash position as of Dec. 31st 1,533 2,143 Consolidation effect AIC 0 -838 Net Cash position as of January 1st 1,533 1,305 Gross Cash Flow from Operations * 1,207 1,469 Change in working capital (78) (562) Cash used for investin
Slide 13: Balance Sheet
Balance Sheet € million Sept. 2002 Dec. 2001 Total Assets 46,238 48,715 of which goodwill 10,034 10,442 of which cash & equivalents,securities 5,929 8,033 of which positive hedge mark-to-market 964 54 Shareholders´ Equity 11,510 9,877 of which OCI 886 (1,278) Minority interest 996 559 Total provisio
Slide 14: 2002 Outlook
2002 Outlook n 2002 guidance reiterated n Revenues close to € 30 bn n FY02 EBIT* at € 1.4 bn n Positive net cash position at year-end n Reduce the customer financing budget below € 1 bn of net addition for the rest of the year * pre-goodwill and exceptional depreciation of fair value 14
Slide 15: 2004 Outlook
2004 Outlook n A stable economic and diplomatic situation underlies 2004 10% EBIT* margin milestone, …. n … Current market conditions : n Air traffic recovery reversal n Space market over-capacity n Budgetary priorities impact on major defense orders n Double-digit EBIT* margin target achieved after
Slide 16: Appendixes
Bacar yall Semen Appendixes 16 \ es
Slide 17: EPS pre-goodwill and exceptional
EPS pre-goodwill and exceptional €m 9-mth 2002 9-mth 2001 Published Net Profit 23 2,282 Airbus UK dilution gain 0 (2,537) Goodwill amortisation 431 475 Fair value on fixed assets 163 185 Fair value on inventory 9 262 Tax impact on fair value (62) (150) Tax on non-operational (71) 223 Others (71) (10
Slide 18: Airbus Nine-month 2002 Performance and Key Drivers
Airbus Nine -month 2002 Performance and Key Drivers n Revenues down 5% from 2001, €m 9-mth 2002 9-mth 2001 down 3% with constant $. Deliveries in units 219 236 n R&D on track with plan; A380 R&D increased from258 in 9-mth Revenues 13,750 14,431 2001 to 497 in 9-mth 2002 R&D** 1,071 935 n Performance
Slide 19: Military Transport Aircraft Nine-month 2002 Performance and Key Drivers
Military Transport Aircraft Nine -month 2002 Performance and Key Drivers €m • EBIT impacted by the €54 m 9-mth 2002 9-mth 2001 charge from asset write-off, following the Fairchild Dornier Revenues 310 306 insolvency EBIT* (79) (12) • selected in November by Brazil Order book 1,258 1,362 for mission
Slide 20: Aeronautics Nine-month 2002 Performance and Key Drivers
Aeronautics Nine -month 2002 Performance and Key Drivers €m n Revenues growth driven by 9-mth 2002 9-mth 2001 Eurocopter, Revenues 3,363 3,161 n EBIT reduced following slowdown EBIT* 132 144 in commercial aviation in % of revenues 3.9% 4.6% aerostructure and maintenance businesses and increased R&D;
Slide 21: Space Nine-month 2002 Performance and Key Drivers
Space Nine -month 2002 Performance and Key Drivers • Revenues contracted due to continued weak commercial €m 9-mth 2002 9-mth 2001 satellite market Revenues 1,389 1,543 • EBIT impacted by programs provisions, asset depreciation; EBIT* (101) (8) restructuring expected in Q4 • Signature of Skynet 5 ex
Slide 22: Defence and Civil Systems Nine-month 2002 Performance and Key Drivers
Defence and Civil Systems Nine -month 2002 Performance and Key Drivers • Seasonality effect on revenues €m and profitability; on track for 9-mth 2002 9-mth 2001 EBIT breakeven+ on full year Revenues 1,874 2,044 • Decrease in revenues mostly due to the consolidation effect EBIT* (91) (163) from 100%
Slide 23: Customer financing exposure
Customer financing exposure all figures in € m Figures for 100% Airbus Sept 30, 2002 Dec. 31, 2001 closing $ rate versus € 0.986 0.881 Total Gross exposure* 3,388 3,505 of which off-balance sheet 985 1,236 Estimate value of collateral (1,863) (1,988) Net exposure 1,525 1,517 Provision (1,525) (1,517
Slide 24: Hedging portfolio strategy: protecting the future
Hedging portfolio strategy : protecting the future Status as of Sept 30, 2002 Total hedging portfolio: $ 43.5 bn 100% micro of which £ hedge : $ 7.5 bn 2002 2003 2004 2005 2006-10 3 months Volume hedged ($bn) 3.3 10.5 8.3 5.9 15.5 average EBIT $ rate/€ 0.96 0.96 0.94 0.94 0.95 average EBIT $ rate/£
Slide 25: Quarterly revenues breakdown (cumulative)
Quarterly revenues breakdown (cumulative) Q1 Q2 Q3 Q4 in €m 2002 2001 2002 2001 2002 2001 2002 2001 Airbus 4,646 4,600 9,870 9,982 13,750 14,431 20,549 MTA 101 70 234 195 310 306 547 Aeronautics 936 883 2,226 2,020 3,363 3,161 5,065 Space 426 402 882 1,054 1,389 1,543 2,439 DCS 539 589 1,245 1,358 1
Slide 26: Quarterly EBIT breakdown (cumulative)
Quarterly EBIT breakdown (cumulative) Q1 Q2 Q3 Q4 in €m 2002 2001 2002 2001 2002 2001 2002 2001 Airbus 396 427 874 797 1,072 1,131 1,655 MTA (12) (12) (72) (21) (79) (12) 1 Aeronautics 16 19 63 85 132 144 308 Space (33) 2 (85) 29 (101) (8) (222) DCS (72) (87) (71) (128) (91) (163) (79) HQ/Elim. 20 (