Slide 1: Full Year 2009 Earnings
Full Year 2009 Earnings Conference Call, 9th March 2010 Louis Gallois CEO 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 Objectives and Guidance EADS – FY 2009 earnings
Slide 4: A400M update
A400M update 4 Signature of a principle agreement in which the nation customers agree to: • Increase the price of the contract by € 2 bn; • Waive all liquidated damages related to current delays; • Provide an additional amount of € 1.5 bn in exchange for a participation in future export sales (Expor
Slide 5: Group Highlights: FY 2009
Group Highlights: FY 2009 5 Business highlights • Challenging commercial environment in 2009; proactive order book management; – Order book € 389 bn at FY 2009 of which Defence € 57 bn; • 2010: Commercial momentum improving. Decision taken to increase Single Aisle production to rate 36 per month fro
Slide 6: Efficiency and Integration
Efficiency and Integration 6 Power 8: € 2.0 bn gross savings in Airbus completed by end 2009, compared to projected cost base. • ROC: ~8,000 overhead positions reduced 2009; less costly than expected; restructuring provision adjusted € +140 m; working on 2,000 positions to be reduced in 2010; • Supp
Slide 7: Contents
Contents 7 Group Highlights Financial Highlights Divisional Performance Objectives and Guidance EADS – FY 2009 earnings
Slide 8: FY 2009 Financial Highlights
FY 2009 Financial Highlights 8 in € bn FY 2009 FY 2008 Change Revenues 42.8 43.3 -1% of which Defence 10.8 11.0 -2% EBIT* before one-off 2.2 3.3 -33% Order intake 45.8 98.6 -54% in € bn Dec. 2009 Dec. 2008 Change Total Order book** 389.1 400.2 -3% of which Defence 57.3 54.9 +4% • Decrease in EBIT* b
Slide 9: FY 2009 EBIT* Before One-off
FY 2009 EBIT* Before One-off 9 EADS Airbus in € bn Group Division EBIT* before one-off 2009 (see slide 27 for 2008 detail). 2.15 1.07 % Revenues (excl. A400M early stage revenues € 0.5 bn) 5.1% 3.9% One off impacts: • A400M ** A400M Provision (1.85) (1.82) € - 1.8 bn • Foreign exchange impact on A40
Slide 10: FY 2009 Profit & Loss Highlights
FY 2009 Profit & Loss Highlights 10 FY 2009 FY 2008 in % of in % of €m Revenues €m Revenues EBIT* (322) (0.8%) 2,830 6.5% Self-financed R&D** 2,825 6.6% 2,669 6.2% EBIT* before R&D 2,503 5.8% 5,499 12.7% Interest result (147) (0.3%) 36 0.1% Other financial result (445) (1.0%) (508) (1.2%) Taxes 220
Slide 11: Currency Hedge Policy
Currency Hedge Policy 11 • Approximately 50% of EADS’ US$ revenues naturally hedged by US$ procurement; • In FY 2009 hedges of $ 16.5 bn* matured at an average hedge rate of € 1 = $ 1.26; • In FY 2009, new forward contracts of $ 16.2 bn** were added at an average rate of € 1= $ 1.39. EADS hedge port
Slide 12: Free Cash Flow
Free Cash Flow 12 in € m FY 2009 FY 2008 Net cash position at the beginning of the period 9,193 7,024 Gross Cash Flow from Operations* 2,423 4,571 Change in working capital 15 (172) of which Customer Financing (406) (327) Cash used for investing activities** (1,853) (1,840) of which Industrial Capex
Slide 13: Contents
Contents 13 Group Highlights Financial Highlights Divisional Performance Objectives and Guidance EADS – FY 2009 earnings
Slide 14: Airbus Division
Airbus Division 14 Airbus Division (after interco elimination) Airbus Commercial Airbus Military (excl. A400M) (Former MTAD, incl.A400M) €m FY 2009 FY 2008 FY 2009 FY 2008 FY 2009 FY 2008 restated restated restated Deliveries 498 483 16 19 Revenues 28,067 28,991 26,370 26,524 2,235 2,759 R&D self-fi
Slide 15: Airbus Division
Airbus Division 15 Airbus Commercial (excl. A400M) Revenues stable EBIT* • Higher volume vs. 2008: +16 SA; +1 LR; -2 A380; • Good underlying performance of LR & SA aircraft but • Price deterioration net of escalation (€ -0.4 bn); A380 weighs on EBIT before one-off; • Impact from foreign exchange (€
Slide 16: Eurocopter
Eurocopter 16 €m FY 2009 FY 2008 Market • Civil market slow down confirmed. Net order intake 344 Revenues 4,570 4,486 helicopters versus 715 in 2008, but 20% higher in value; R&D self-financed 164 134 • Short-term pressure on civil deliveries: -6% on total in % of revenues 3.6% 3.0% deliveries in 20
Slide 17: Astrium
Astrium 17 €m FY 2009 FY 2008 Revenues +12% • Revenue increase across all businesses; Revenues 4,799 4,289 • Non-operational catch-up effect for in-orbit R&D self-financed 74 69 incentive schemes on commercial telecommunication in % of revenues 1.5% 1.6% satellites (€ +0.2 bn) with low margin. EBIT*
Slide 18: Defence & Security
Defence & Security 18 €m FY 2009 FY 2008 Revenues • Growth from Eurofighter ramp-up: core and export; Revenues 5,363 5,668 • 2008 baseline includes Augsburg Aerostructures R&D self-financed 216 174 activities (€ 0.4bn). in % of revenues 4.0% 3.1% EBIT* 449 408 EBIT* +10% in % of revenues 8.4% 7.2% •
Slide 19: Other Businesses
Other Businesses 19 Overall €m FY 2009 FY 2008 • Perimeter changes: – EFW in Airbus segment, 2008 figures restated; Revenues 1,096 1,338 – 30% of Socata now accounted for at equity R&D self-financed 6 9 revenue impact (€ 0.3 bn). 2008 figures are not in % of revenues 0.5% 0.7% restated. EBIT* 21 43
Slide 20: Contents
Contents 20 Group Highlights Financial Highlights Divisional Performance Objectives and Guidance EADS – FY 2009 earnings
Slide 21: 2010 Outlook
21 2010 Outlook Commercial Cycle • Group fundamentally solid to cope with 2010 economic environment which is improving but is still volatile; • Resilient backlog of 3,488 a/c in Airbus, 1,303 in Eurocopter and strong backlog in the Space and Defence businesses; • Based on a number of active campaign
Slide 22: 2010 Top Objectives of Execution
22 2010 Top Objectives 1 of 2 Execution • Programme Management – Deliver on key programmes: Saudi border A400M A380 A350 XWB NH90 surveillance • Efficiencies – Integration; – Margin growth and cash management. EADS – FY 2009 earnings
Slide 23: 2010 Top Objectives of Growth
23 2010 Top Objectives 2 of 2 Growth • Prepare for future programmes through innovation Mid-life upgrade Ariane 5 Future commercial aircraft Talarion and Ariane 6 and helicopters Advanced UAV • Mid-long term vision – Globalisation: extend our global footprint; – Develop services. EADS – FY 2009 earn
Slide 24: Appendix
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Slide 25: Future EADS
Future EADS 25 Future EADS € 350 m annual gross savings targeted for end 2012, compared to projected cost base. Work Streams: • Finance: • General Procurement: Simplification and integration of reporting and Product development: improvement of sub- systems, reduction of working capital, contracting
Slide 26: FY 2009 Forex EBIT* Impact Bridge
FY 2009 Forex EBIT* Impact Bridge 26 Forex impact on EBIT* ( in € bn ) BRIDGE • Revaluation of Airbus LMC provisions (0.9) * • Deterioration of hedge rates (€ : $ 1.18 to 1.26) (0.9) out of which Airbus ~(0.9) • Other one-off forex effect including PDP reversal (0.7) (2.5) out of which Airbus (2.5)
Slide 27: FY 2008 EBIT* Before One-off
FY 2008 EBIT* Before One-off 27 EADS Airbus in € bn Group Division EBIT* before one-off 2008 3.3 2.1 ** One off impacts: • Reassessment of A400M charge*** (0.8) (0.6) • LMC provision (mainly A380) (1.0) (1.0) • Revaluation of all Loss Making Contracts at closing spot 0.9 0.9 • Other one-off 0.4 0.4
Slide 28: FY 2009 Financial Highlights
FY 2009 Financial Highlights 28 FY 2009 FY 2008 in % of in % of €m Revenues €m Revenues Revenues 42,822 43,265 self-financed R&D** 2,825 6.6% 2,669 6.2% EBITDA* 1,446 3.4% 4,439 10.3% EBIT* (322) (0.8%) 2,830 6.5% EBIT* before R&D 2,503 5.8% 5,499 12.7% Net income (loss) (763) (1.8%) 1,572 3.6% EPS*
Slide 29: EADS Shareholding structure
Shareholding structure 29 Contractual Partnership Free float SOGEADE SEPI Daimler Lagardère & incl. Minor direct holdings: French French State: 0.06% State Treasury shares 0.39% 22.46% 5.48% 22.46%* 50.4% 49.6% as at 31st Dec. 2009 EADS * On February 9, 2007, Daimler reached an agreement with a cons
Slide 30: Expected EADS Average Hedge Rates € vs. $
Expected EADS Average Hedge Rates € vs. $ 30 Average hedge rates of forward contracts only 1.50 1.40 1.39 1.36 1.35 1.35 1.32 1.33 1.30 1.29 1.26 1.25 2008 1.19 1.20 1.21 1.22 Average FY 2008 1.18 2009 Average FY 2009 1.17 1.15 2010e Average FY 2010e 1.10 Q1 Q2 Q3 Q4 FY EADS – FY 2009 earnings
Slide 31: Provision Consumption excluding A400M
Provision Consumption excluding A400M 31 3 2 in Bn € 1 0 Closing 2009 < 2013 2013- 2014 > 2014 Restructuring P ro visio ns Liquidated Damages LM C EADS – FY 2009 earnings
Slide 32: Airbus Customer Financing
Airbus Customer Financing 32 Active exposure management Additions and Disposals Net Exposure fully to Airbus customer financing gross exposure in $ bn provisioned 2.5 Additions Sell Down Amortisation 1.5 1.4 Gross Net 1.0 0.6 0.5 0.5 1.5 1.5 0.9 0.8 0.3 Exposure 0.6 0.4 (0.2) Exposure € 0.5 bn (0.9)
Slide 33: Customer Financing Exposure
Customer Financing Exposure 33 100% AIRBUS 50% ATR 100% EC in € m Dec. 2009 Dec. 2008 Dec. 2009 Dec. 2008 Dec. 2009 Closing rate € 1 = $ 1.44 $ 1.39 Total Gross exposure 1,260 1,052 159 224 76 of which off-balance sheet 335 369 47 46 47 Estimated value of collateral (772) (476) (145) (203) (55) Net
Slide 34: Q4 2009 Key Figures
Q4 2009 Key Figures 34 in € bn Q4 2009 Q4 2008 Revenues 13.1 13.8 EBIT* (1.4) 0.8 FCF before customer financing** 1.9 1.0 New orders 21.3 9.9 Revenues EBIT* in € m Q4 2009 Q4 2008 Q4 2009 Q4 2008 Airbus 7,874 8,426 (1,894) 351 Eurocopter 1,531 1,705 98 129 Astrium 1,571 1,540 106 94 DS 2,067 2,178 2
Slide 35: EBIT* Calculation
EBIT* Calculation 35 in € m FY 2009 FY 2008 EBIT* (322) 2,830 Exceptionals: Disposal (fixed assets in other income) (2) (6) Fair value depreciation (56) (52) Profit (Loss) before finance cost (380) 2,772 and income taxes * Pre-goodwill impairment and exceptionals EADS – FY 2009 earnings
Slide 36: Net Income (loss) pre-exceptionals
Net Income (loss) pre-exceptionals 36 in € m FY 2009 FY 2008 Net income (loss)* (722) 1,613 EPS* (1) € (0.89) € 2.00 Exceptionals: Fair value adjustment (58) (58) Related tax impact 17 17 Net income (loss) (763) 1,572 EPS (1) € (0.94) € 1.95 * Pre-goodwill impairment and exceptionals; the term “exce
Slide 37: Net Cash Position
Net Cash Position 37 in € m Dec. 2009 Dec. 2008 Gross cash 15,093 13,697 Financing Debts Short-term Financing Debts* (2,429) (1,458) Long-term Financing Debts (2,867) (3,046) Reported Net cash 9,797 9,193 Airbus non-recourse debt 652 737 Net cash excl. non-recourse 10,449 9,930 * 1 billion euro bond
Slide 38: EADS: Strong Liquidity Position
EADS: Strong Liquidity Position 38 as at 31st Dec. 2009 • Maturity 2012 € 3.0 bn • Undrawn • Fully committed by 32 banks Credit Facility • No financial covenants • No MAC clause € 5.3 bn EMTN progamme • Long term rating : A1 / BBB+ Financing Liabilities • CDS in line with its rating/sector (incl. €
Slide 39: Balance Sheet Highlights: Assets
Balance Sheet Highlights: Assets 39 in € m Dec. 2009 Dec. 2008 Non-current Assets 37,792 35,924 of which Intangible & Goodwill 11,060 11,171 of which Property, plant & equipment 12,508 12,156 of which Investments & Financial assets 4,724 4,068 of which positive hedge mark-to-market 1,307 1,101 of wh
Slide 40: Balance Sheet Highlights: Liabilities
Balance Sheet Highlights: Liabilities 40 in € m Dec. 2009 Dec. 2008 Total Equity 10,641 11,126 of which OCI (Other Comprehensive Income) 2,646 1,758 of which Non-controlling interests 106 104 Total Non-current liabilities 27,287 28,302 of which pensions 5,080 4,335 of which other provisions 3,057 3,
Slide 41: Quarterly Revenues Breakdown (cumulative)
Quarterly Revenues Breakdown 41 (cumulative) in € m Q1 H1 9m FY 2009 2008 2009 2008 2009 2008 2009 2008 Airbus Division 5,883 7,430 13,951 14,140 20,193 20,565 28,067 28,991 Thereof Airbus Comm.* 5,470 6,817 13,204 13,376 18,949 18,782 26,370 26,524 Thereof Airbus Military 456 636 855 898 1,637 1,94
Slide 42: Quarterly EBIT* Breakdown (cumulative)
Quarterly EBIT* Breakdown 42 (cumulative) in € m Q1 H1 9m FY 2009 2008 2009 2008 2009 2008 2009 2008 Airbus Division 89 635 519 710 523 1,464 (1,371) 1,815 Thereof Airbus Comm.** 205 518 737 655 743 1,769 386 2,306 Thereof Airbus Military (116) 118 (218) 55 (216) (306) (1,754) (493) Eurocopter 38 37
Slide 43: Quarterly Order-intake Breakdown (cumulative)
Quarterly Order-intake Breakdown 43 (cumulative) in € m Q1 H1 9m FY 2009 2008 2009 2008 2009 2008 2009 2008 Airbus Divison 1,792 35,286 6,194 44,094 11,335 78,991 23,904 85,493 Thereof Airbus Comm.* 1,667 31,470 6,025 41,056 10,487 75,197 23,461 82,108 Thereof Airbus Military 164 3,836 247 4,209 1,0
Slide 44: Quarterly Order-book Breakdown (cumulative)
Quarterly Order-book Breakdown 44 (cumulative) in € m Q1 H1 9m FY 2009 2008 2009 2008 2009 2008 2009 2008 Airbus Division 365,412 305,557 343,584 308,272 332,035 355,448 339,722 357,824 Thereof Airbus Comm.* 345,123 282,742 323,497 286,329 311,674 333,849 320,321 337,193 Thereof Airbus Military 21,9