Airbus Se · EURONEXT:AIR
Airbus — Non-Deal Roadshow (March 2018)
23 slides from Airbus's roadshow presentation, March 2018
Slide 1: FY 2017 Roadshow Presentation
AIRBUS FY 2017 Roadshow Presentation March 2018
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: FY 2017 Highlights
FY 2017 HIGHLIGHTS 3 2017 KPIs: overachieved, driven by strong underlying business performance Solid commercial environment: book to bill 1.5; record backlog supporting ramp-up plans A400M: FY17 €1.3 bn charge; remaining exposure significantly reduced Dividend: proposal of €1.50 per share, +11% v FY
Slide 4: FY 2017 Roadshow Presentation
FY 2017 Roadshow Airbus FY17 Financial Equity Presentation Strategy Performance Story
Slide 5: Robust long term fundamentals behind growing demand
ROBUST LONG TERM FUNDAMENTALS BEHIND GROWING DEMAND 5 Traffic growth Propensity to travel 2016 trips per Capita World annual traffic Airbus GMF 2017: Bubbles proportional (trillion RPKs) To country population growth p.a. 18 Oil crisis Asian SARS crisis 4.4% (2017-2036) 16 Oil Gulf 9/11 Financial 14
Slide 6: Strong backlog and steady increase in deliveries
STRONG BACKLOG AND STEADY INCREASE IN DELIVERIES 6 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.
Slide 7: Global market presence
GLOBAL MARKET PRESENCE 7 Backlog* – 7,265 aircraft 2017-2036 demand for > 34,000 aircraft 15 14.3 100% Europe & CIS North America Asia 17% / 24% 75% Thousand aircraft Pacific 11% / 16% 10 Middle 27% / 42% East 6.8 50% 7% / 7% 5.6 5 Latin America Africa 2.7 25% Lessors 2.5 1% / 3% 20% 1.2 1.1 8% / 8%
Slide 8: Airbus Commercial Aircraft
AIRBUS COMMERCIAL AIRCRAFT 8 Seats FY17: 558 deliveries (181neos); 1,054 net orders; 6,141 backlog 100 A320 Family Healthy backlog more than supports ramp-up to rate 60 by mid-19 150 200 FY17: 67 deliveries; 21 net orders; 317 backlog A330neo First Flight completed A330 Family 250 First delivery tar
Slide 9: Defence & Space / Helicopters key programme status
DEFENCE & SPACE / HELICOPTERS KEY PROGRAMME STATUS 9 A400M Declaration of Intent signed with customer nations on 05/02/2018 Important step towards reaching binding agreement in 2018 to mitigate risks and to ensure the future of the programme Remaining exposure significantly reduced Eurofighter Good
Slide 10: Portfolio development
PORTFOLIO DEVELOPMENT 10 Divestments / M&A Group structure set: Airbus, AH, ADS Portfolio reshaping in ADS complete C Series Agreement – pending closing Combination of Airbus’ global reach and scale with Bombardier’s innovative new aircraft Significant long term value creation Services Maintenance &
Slide 11: Digital & Innovation
DIGITAL & INNOVATION 11 Electrification Urban Air Mobility • Increasing congestion in our cities • <100 seats aircraft could use hybrid propulsion • 2 entirely new autonomous systems by 2030 fully-electric urban flying vehicles to be tested in 2018 Data exploitation Connectivity • Interconnection of
Slide 12: Airbus in the U.S.
L_ AIRBUS IN THE U.S. @) 3,500+ employees US Procurement >$12bn e FAL & Eng. Center, Alabama OneWeb, Florida Helico. Production lines, Mississippi Helico. Training & Delivery Center, Texas AIRBUS
Slide 13: FY 2017 Roadshow Presentation
FY 2017 Roadshow Airbus FY17 Financial Equity Presentation Strategy Performance Story
Slide 14: FY 2017 Commercial Positioning
FY 2017 COMMERCIAL POSITIONING 14 Airbus Order Book* Airbus External Revenue by Region (by value) by Division 10% 16% 7% 29% 9% € 997 bn € 67 bn 12% t/o defence € 37 bn t/o defence € 9.9 bn 20% 22% 75% Asia Pacific Middle East Commercial Aircraft Europe Latin America Helicopters North
Slide 15: FY 2017 Financial Performance
FY 2017 FINANCIAL PERFORMANCE 15 Revenues EBIT Adjusted in € bn in € bn / RoS (%) 6.4% 6.4% 5.9% 66.6 66.8 4.11 3.96 4.25 64.5 FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn 3.67 2.9 3.39 3.31 1.3 1.4 FY 2015 FY 2016 FY 2017 FY 2015
Slide 16: FY 2017 Profitability
FY 2017 PROFITABILITY 16 EBIT Performance in € bn FY 2017 EBIT Reported of € 3.4 bn FY 2017 Adjustments resulting from: €- 1,299 m A400M LMC €- 117 m Compliance 4.25 3.96 3.42 €- 7 m $ PDP mismatch / BS revaluation 2.26 €+ 7 m Other AD Portfolio €- 20 m Other M&A EBIT Adjusted EBIT Reported Unchange
Slide 17: Currency Hedge Policy
CURRENCY HEDGE POLICY 17 IN $ BILLION Forward Sales as of Dec. 2017 25.3 Collars as of Dec. 2017 3.8 Forward Sales and Collars as of Dec. 2016 4.6 24.5 (1) 1.7 21.3 17.8 11.3 0.0 3.7 Average hedge 2022 2017 2018 2019 2020 2021 rates and beyond 1.29 (1) 1.25 1.24 1.22 1.23 1.24 € vs $ Forwards/
Slide 18: FY 2017 Cash Evolution
FY 2017 CASH EVOLUTION 18 IN € BILLION +4.5 +0.3 +0.9 -1.9 -1.0 -0.4 Free Cash Flow before M&A: € + 2.8 bn t/o Customer Financing: € - 0.1 bn Free Cash Flow before M&A and 13.4 11.1 Customer Financing € + 2.9 bn Net Cash Gross Cash Flow Change in Cash used for M&A (2) Shareholder Pensions & Net Cash
Slide 19: FY 2017 Roadshow Presentation
FY 2017 Roadshow Airbus FY17 Financial Equity Presentation Strategy Performance Story
Slide 20: Introducing IFRS 15 Revenue from Contracts with Customers
INTRODUCING IFRS 15 “REVENUE FROM CONTRACTS WITH CUSTOMERS” 20 IFRS15 effective from January 1st 2018, now the standard for revenue recognition, measurement, and disclosure IFRS 15 will not impact cumulative profit or cash over the lifetime of a contract FY 2018 will be prepared under full app
Slide 21: 2018 Guidance and Dividend Proposal
2018 GUIDANCE AND DIVIDEND PROPOSAL 21 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 FCF guidance is based on a constant perimeter, before M&A Airb
Slide 22: Increasing Shareholder Returns
INCREASING SHAREHOLDER RETURNS 22 Total Shareholder Returns* € ~8.5 bn FCF 2.4 € ~12 bn 1.7 1.2 1.0 1.2 3.7 0.6 0.4 3.2 2.8 2012 2013 2014 2015 2016 2017 2018** 2.0 1.2 Dividend Share Buyback Dividend per Share 1.50 1.30 1.35 -0.8 1.20 2012 2013 2014 2015 2016 2017 0.75 105% FCF FCF before M&A and C
Slide 23: Earnings and FCF Taking Off
EARNINGS AND FCF TAKING OFF 23 EPS Growth FCF Growth End of End of decade decade Boost Cash Conversion Performance EPS Growth ~1 A350 Turning Profitable A400M* A320 Volume and Price Working capital FX Control Hedging Impact End End 2017 2017 * A400M will continue to weigh in 2018 and 2019 Box sizes