Slide 1: Airbus 9m Results 2018
AIRBUS 9m Results 2018 31 October 2018 Harald Wilhelm Chief Financial Officer
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: 9m Results Highlights
9m Results 2018 Company Divisional Guidance Highlights Highlights Highlights
Slide 4: 9M 2018 Highlights
9M 2018 HIGHLIGHTS 4 Focus on deliveries and securing ramp-up 9m financials reflect A350 performance and aircraft delivery profile 2018 Guidance updated to reflect latest delivery outlook Progress in management succession
Slide 5: 9M 2018 Commercial Positioning
9M 2018 COMMERCIAL POSITIONING 5 Consolidated Airbus Order Book Consolidated Airbus by Division External Revenue by Division 9m 2018 17% Order Intake (net) 256 Airbus (in units) Order book 7,383 9% € 40.4 bn t/o defence € 6 bn Order Intake (net) 3,523 Helicopters (in € m) Order book 12,594 74% Order
Slide 6: 9M 2018 Financial Performance
9M 2018 FINANCIAL PERFORMANCE 6 Revenues EBIT Adjusted in € bn in € bn / RoS (%) 6.8% 40.4 3.2% 2.7 38.0 1.2 9m 2017 9m 2018 9m 2017 9m 2018 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn 2.31 0.84 9m 2017 9m 2018 (3.3) (4.2) 9m 2017 9m 2018 (1) 9m 2018 Average number of shares:
Slide 7: 9M 2018 Profitability
9M 2018 PROFITABILITY 7 EBIT Performance in € bn 9m 2018 EBIT Reported of € 2.7 bn 9m 2018 Adjustments resulting from: € - 105m A400M provision 2.7 2.7 € - 23m First H160s 1.7 1.2 € - 109m Compliance / Others EBIT Adjusted EBIT Reported € + 26m PDP mismatch / BS revaluation 9m 2017 9m 2018 € + 156m
Slide 8: Currency Hedge Policy
CURRENCY HEDGE POLICY 8 IN $ BILLION ▪ Forward Sales as of September 2018 2.7 ▪ Collars as of September 2018 4.6 ▪ Forward Sales and Collars as of Dec. 2017 17.7 1.7 23.1 21.1 15.3 8.8 6.8 2018 2022 Average hedge rates remaining 3 months 2019 2020 2021 and beyond 1.20 1.24 1.23 1.24 1.27 € vs $ Forw
Slide 9: 9M 2018 Cash Evolution
9M 2018 CASH EVOLUTION 9 IN € BILLION 2.5 0.4 -5.7 -1.2 -1.2 Free Cash Flow incl. A220 before M&A : € - 4.3 bn 13.4 t/o Customer Financing: € - 0.2 bn -1.1 Free Cash Flow before M&A and Customer Financing € - 4.2 bn 7.2 NetCash Net Cash Gross Cash Flow Change in (3) Cash used for M&A(2) Shareholder
Slide 10: Divisional Highlights
9m Results 2018 Company Divisional Guidance Highlights Highlights Highlights
Slide 11: Airbus
11 IN € MILLION 9m 2018 9m 2017 Change Deliveries by Programme (units) 2% 2% Order Intake (net) 256 271 -5.5% 12% Units 6% Order book 7,383 6,691 10.3% Deliveries (Units) 503 454(1) 10.8% 78% Revenues 30,478 27,579 10.5% ▪ A220 ▪ A330 ▪ A320 ▪ A380 R&D Expenses 1,456 1,303 11.7% ▪ A350 in % of Reven
Slide 12: Helicopters
HELICOPTERS 12 IN € MILLION 9m 2018 9m 2017 Change External Revenue Split Order Intake (net) 230 210 9.5% Units Order book 704 710 -0.8% 47% 53% Order Intake (net) 3,523 4,729 -25.5% Value Order Book 12,594 11,636 8.2% ▪ Defence ▪ Civil Deliveries (Units) 218 266 -18.0% Revenues 3,755 4,197 -10.5% R
Slide 13: Defence and Space
DEFENCE AND SPACE 13 IN € MILLION 9m 2018 9m 2017(1) Change External Revenue Split Order Intake (net) 4,988 5,714 -12.7% 33% Order Book 35,880 38,551 -6.9% 67% Revenues 7,051 7,052 0.0% ▪ Platforms ▪ Services R&D Expenses 219 220 -0.5% in % of Revenues 3.1% 3.1% EBIT Adjusted 409 397 3.0% in % of Re
Slide 14: Guidance
9m Results 2018 Company Divisional Guidance Highlights Highlights Highlights
Slide 15: 2018 Guidance
2018 GUIDANCE 15 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 16: Wrap Up
WRAP UP 16 Focus on 2018 deliveries Preparing the future: − Ramp up − Innovation − Management transition EPS / FCF growth
Slide 17: Appendix
9m Results 2018 Appendix AIRBUS
Slide 18: Expected Airbus Average Hedge Rates € vs. $
EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $ 18 Active exposure management 1.36 Average 1.34 1.33 Hedge Rates 1.32 FY 2017 1.29 1.30 1.31 1.29 FY 2018E 1.24 1.28 1.27 1.26 1.25 1.27 1.24 1.22 1.20 1.20 1.18 (1) 1.18 1.16 Q1 Q2 Q3 Q4 2018 E FY 2017 2018 figures include A220, consolidated into Commerci
Slide 19: 9M 2018 Detailed Income Statement and Adjustments
9M 2018 DETAILED INCOME STATEMENT AND ADJUSTMENTS 19 IN € MILLION thereof Adjustments Impact on EBIT Financial 9m 2018 9m 2018 Operational FX Result Adjusted Defence and Airbus Helicopters Airbus & ADS (2) Space (1) EBIT 2,683 2,738 (109) 51 (23) 26 in % of revenues 6.6% 6.8% Interest income 144 144
Slide 20: 9M 2017 Detailed Income Statement and Adjustments
9M 2017 DETAILED INCOME STATEMENT AND ADJUSTMENTS 20 IN € MILLION thereof Adjustments Impact on EBIT Financial 9m 2017 9m 2017 Operational FX Result Adjusted Airbus Defence and Space (1) & ADS (2) EBIT 1,673 1,208 422 43 in % of revenues 4.4% 3.2% Interest income 134 134 Interest expenses (385) (385
Slide 21: Q3 2018 Key Figures
Q3 2018 KEY FIGURES 21 IN € MILLION Q3 2018 Q3 2017(1) Revenues 15,451 12,832 EBIT Adjusted 1,576 655 EBIT 1,563 462 Net Income 957 307 FCF before M&A (273) (1,234) FCF before M&A and Customer Financing (201) (1,251) Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 IN € MILLION Revenues EBIT Adjusted
Slide 22: Airbus: Strong Liquidity Position
AIRBUS: STRONG LIQUIDITY POSITION AS OF 30 SEPTEMBER 2018 22 € 3.0 bn Credit Facility: Credit Facility (RSCF) ▪ Maturity 2021, undrawn ▪ Fully committed by 40 banks ▪ No financial covenants, no MAC clause € 11.1 bn Financing Liabilities: Financing Liabilities of which long-term : €7.5 bn ▪ Includes
Slide 23: Detailed Free Cash Flow
DETAILED FREE CASH FLOW 23 IN € MILLION 9m 2018 9m 2017 Net Cash position at the beginning of the period 13,390 11,113 Gross Cash Flow from Operations (1) 2,517 1,856 Change in working capital (5,687) (4,400) Cash used for investing activities (2) (758) (664) of which Industrial Capex (additions) (3
Slide 24: Net Cash Position
NET CASH POSITION 24 IN € MILLION Sept. 2018 Dec. 2017 Gross Cash 18,325 24,587 Financing Debts (11,137) (11,197) Short-term Financing Debts (3,638) (2,213) Long-term Financing Debts (7,499) (8,984) Reported Net Cash 7,188 13,390 Airbus non-recourse debt 35 29 Net Cash excl. non-recourse 7,223 13,41
Slide 25: Customer Financing Exposure
CUSTOMER FINANCING EXPOSURE 25 IN € MILLION Sept. 2018 Dec. 2017 Sept. 2018 Dec. 2017 Airbus Helicopters Closing rate € 1 = $1.16 $1.20 $ 1.16 $ 1.20 Total Gross Exposure 1,067 1,264 143 135 of which off-balance sheet 29 144 14 4 Estimated value of collateral (814) (953) (58) (64) Net Exposure 253 3
Slide 26: Airbus Customer Financing
AIRBUS CUSTOMER FINANCING 26 IN € BILLION Additions Sell Down Amortization Net change 0.6 1.0 0.9 0.8 0.3 0.8 0.8 0.7 0.5 0.6 0.6 0.4 Airbus Customer (0.2) 0.1 Financing Gross (0.3) (0.3) (0.5) Exposure (0.1) (0.2) (0.7) (0.7) (0.7) (0.7) (0.6) (0.7) (0.1) (0.1) (1.1) (0.1) (0.2) (0.2) (0.1) (0.1) (
Slide 27: Balance Sheet Highlights: Assets
BALANCE SHEET HIGHLIGHTS: ASSETS 27 IN € MILLION Sept. 2018 Dec. 2017 Non-current Assets 57,527 53,526 of which Intangible & Goodwill 16,988 11,629 of which Property, plant & equipment 16,659 16,611 of which Investments & Financial assets 5,768 5,821 of which positive hedge mark-to-market 1,598 2,90
Slide 28: Balance Sheet Highlights: Liabilities
BALANCE SHEET HIGHLIGHTS: LIABILITIES 28 IN € MILLION Sept. 2018 Dec. 2017 Total Equity 9,526 10,742 of which OCI (Other Comprehensive Income) 944 2,742 of which Non-controlling interests (5) 2 Non-current liabilities 44,909 42,162 of which pensions 7,452 8,025 of which other provisions 4,094 1,754
Slide 29: Shareholding Structure as at 30 September 2018
SHAREHOLDING STRUCTURE AS AT 30 SEPTEMBER 2018 29 0.1% Free Float 73.6% 4.2% 11.0% Shareholder Agreement 26.3% 11.1% SOGEPA 11.1% GZBV 11.0% 73.6% SEPI 4.2% Treasury Shares 0.1% 775,873,527 shares issued as at 30 September 2018 2018 figures include A220, consolidated into Commercial Aircraft as of J
Slide 30: Quarterly Revenues Breakdown (Cumulative)
QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) 30 IN € MILLION Q1 H1 9m FY 2018 2017 2018 2017 2018 2017 2018 2017 Airbus 7,222 8,166 18,546 18,182 30,478 27,579 43,486 Helicopters 961 1,176 2,388 2,716 3,755 4,197 6,335 (1) Defence and Space(1) 2,217 2,340 4,652 4,900 7,051 7,052 10,596 Transversal & El
Slide 31: Quarterly EBIT Adjusted Breakdown (Cumulative)
QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE) 31 IN € MILLION Q1 H1 9m FY 2018 2017 2018 2017 2018 2017 2018 2017 Airbus (41) (103) 867 257 2,340 806 2,383 Helicopters (3) (6) 135 80 202 161 247 (1) Defence and Space(1) 112 118 309 298 409 397 815 Transversal & Elim. (54) (28) (149) (82) (213) (156
Slide 32: Quarterly EBIT Breakdown (Cumulative)
QUARTERLY EBIT BREAKDOWN (CUMULATIVE) 32 IN € MILLION Q1 H1 9m FY 2018 2017 2018 2017 2018 2017 2018 2017 Airbus (2) (48) 773 381 2,238 779 2,257 Helicopters (10) (6) 114 80 179 161 247 (1) Defence and Space(1) 265 657 382 832 479 889 462 Transversal & Elim. (54) (28) (149) (82) (213) (156) (301) (1
Slide 33: 9M 2018 IFRS vs. APM Cash Flow Reconciliation
9M 2018 IFRS VS. APM CASH FLOW RECONCILIATION 33 IN € MILLION 9m 2018 IN € BILLION 9m 2018 Cash provided by (used for) operating activities (4,326) Cash provided by (used for) operating activities (4,326) t/o Reimbursement from / contribution to plan assets (1,152) Cash provided by (used for) invest
Slide 34: Glossary on Alternative Performance Measures (APM)
GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM) 34 The following Presentation also contains certain “non-GAAP financial measures”, i.e. financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measure calculated and presented in a