Slide 1: Q1 2004 Earnings
Q1 2004 Earnings Hans Peter Ring, CFO Analysts Conference call – May 12, 2004 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 bel
Slide 2: Content; Q1 Strong Performance confirms 2004 targets
Content 1. Group overview 2. Operating performance by division 3. Financials 4. Roadmap 3 Q1 Strong Performance… • Airbus improves margin on higher deliveries and better mix • Space on track for breakeven in 2004 • Defence businesses driven by seasonal factors • Strong Free Cash Flow pre-customer fi
Slide 3: EADS Extends its International Footprint; Q1 2004 Financial Highlights
EADS Extends its International Footprint… Asia-Pacific: • Partnership with Singapore Economic Development Board • Enhance cooperation with Japanese & Chinese industry • Airbus successes: Air Tahiti, Cathay Russia: • Creation of EADS Russia ( OOO EADS) … and reaches for new level Defence • Transatlan
Slide 4: Airbus
Content 1. Group overview 2. Operating performance by division 3. Financials 4. Roadmap 7 Airbus €m Q1 2004 Q1 2003 • Revenues increased 9% or 15% with constant €-$ rate, thanks to Deliveries 67 65 more deliveries and better mix Revenues 4,126 3,775 R&D self-financed 463 445 • EBIT* margin increases
Slide 5: Reduced Airbus customer financing exposure; MTA
Reduced Airbus customer financing exposure in €m March 2004 Dec. 2003 Total Gross exposure 3,808 € m 3,822 € m of which off-balance sheet 712 € m 724 € m Estimated collateral value (2,222 € m) (2,229 € m) Net exposure before provision 1,586 € m 1,593 € m Provision (1,586 € m) (1,593 € m) Residual Ai
Slide 6: Aeronautics; Space
Aeronautics Q1 2003 • Revenues decline reflects the €m Q1 2004 Pro-forma** slowdown in civil aircraft Revenues 645 686 maintenance and service R&D self-financed 18 17 businesses in % of revenues 2.8% 2.5% • EBIT includes some EBIT* 10 16 in % of revenues 1.6% 2.3% restructuring charge at Sogerma Ord
Slide 7: Defence and Security Systems
Defence and Security Systems Q1 2003 €m Q1 2004 Pro-forma** • Revenues +15% driven by Revenues 932 813 Military aircraft strong business R&D self-financed and missiles delivery ramp up. 40 49 in % of revenues 4.3% 6.0% • Revenues and EBIT EBIT* (51) (54) seasonality: better performance Order book 14
Slide 8: Goodwill amortisation; Profit & loss highlights
Goodwill amortisation: Application of IFRS3 “Business Combination” from January 1st 2004 “Amortisation of goodwill with indefinite useful lives is prohibited. Amortisation must be tested for impairment annually , or more frequently if events or changes in circumstance indicate a possible impairment”
Slide 9: Development of net cash; Hedge Policy is continued
Development of net cash in € m Q1 2004 Q1 2003 Net cash at the beginning of the period 3,105 2,370 Gross Cash Flow from Operations* 505 20 Change in working capital 462 102 Cash used for investing activities** (481) (510) of which Industrial Capex (additions)*** (501) (409) of which Customer Financi
Slide 10: EADS Management confirms 2004 target
Content 1. Group overview 2. Operating performance by division 3. Financials 4. Roadmap 19 EADS Management confirms 2004 target 2004 Guidance • Revenues ca. 29 / 30 €bn ** • EBIT* 1.8 €bn • Book-to-bill over 1 • FCF before cust.financing Positive … and sees medium-term strong growth across the board
Slide 11: Appendix: Balance Sheet Highlights
Appendix 21 Balance Sheet Highlights March Dec. 2003 in € m 2004 Assets 53,682 54,378 of which Goodwill 9,372 9,372 of which cash & equivalents, securities 8,445 7,872 of which positive hedge mark-to-market 6,796 7,964 Stockholders' equity 15,638 16,149 of which OCI (Other Comprehensive Income) 5,37
Slide 12: EBIT* calculation; Restructuring, write-off and disposal items
EBIT* calculation March March in € m 2004 2003 Income from operating 118 (96) activities Income from investments ** 28 24 Exceptionals: Goodwill amortisation** 0 140 Fair value adjustment 52 62 EBIT* 198 130 * pre goodwill and exceptionals ** IAS3 applied from 2004: goodwill only reduced by impairme
Slide 13: Net Cash Position; Net Income compliant with IFRS3
Net Cash Position in m€ March 2004 Dec. 2003 Gross cash 8,445 7,872 Financial Debts* (5,001) (4,767) Reported Net cash 3,444 3,105 non-recourse debt 757 679 Net cash excl. non-recourse 4,201 3,784 Main minority impact* (54) 40 Airbus 20% non-recourse debt (151) (136) Net cash position net of 3,996 3
Slide 14: A380 under final assembly; Customer Financing Exposure
A380 under final assembly Cumulative A380 R&D Self-financed R&D expensed by quarter in € m 740 = 2.6 €bn 628 628 650 528 548 535 473 480 485 412 445 403 450 356 322 319 262 273 289 193 228 250 126 150 154 64 93 101 50 Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3
Slide 15: Quarterly revenues breakdown; Quarterly EBIT breakdown
Quarterly revenues breakdown (cumulative) Q1 Q2 Q3 Q4 in €m 2004 2003 2004 2003 2004 2003 2004 2003 Airbus 4,126 3,775 8,773 12,051 19,048 MTA 101 96 268 410 934 Aeronautics* 645 686 1,613 2,452 3,803 Space 457 403 1,008 1,473 2,424 DS* 932 813 1,902 2,957 5,165 HQ & Elim. (230) (253) (504) (807) (1
Slide 16: Quarterly Order-intake breakdown; Quarterly Order-book breakdown
Quarterly Order-intake breakdown (cumulative ) Q1 Q2 Q3 Q4 in €m 2004 2003 2004 2003 2004 2003 2004 2003 Airbus 1,068 3,416 33,174 37,028 39,904 MTA 100 122 20,104 20,195 20,326 Aeronautics* 843 706 1,440 2,213 3,661 Space 238 341 779 1,246 6,062 DS* 1,359 969 1,988 3,239 6,288 HQ & Elim. (197) (176