Airbus Se · EURONEXT:AIR
Airbus — Q1 2018 Earnings Presentation
21 slides from Airbus's earnings presentation, May 24, 2018
Slide 1: Q1 2018 Roadshow Presentation
AIRBUS Q1 2018 Roadshow Presentation 24 May 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: Q1 2018 Highlights
Q1 2018 HIGHLIGHTS 3 Backlog and commercial momentum support ramp-up plans Q1 financials reflect engine and delivery phasing 2018 Guidance confirmed
Slide 4: Q1 2018 Roadshow Presentation
Q1 2018 Roadshow Business Financial Equity Presentation Update Update 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* – 7,189 aircraft 2017-2036 demand for > 34,000 aircraft 15 14.3 100% Europe & CIS North America Asia 16% / 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 Q1’18: 95 deliveries (30 A320neos); 37 net orders; 6,083 backlog Demand remains strong; backlog supports ramp-up plans A320 Family Rate 60 by mid-19. Rate 70 feasibility study launched Q1’18: 8 deliveries; -6 net orders; 303 backlog Continuing neo transition; First deliv
Slide 9: Portfolio development
PORTFOLIO DEVELOPMENT 9 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 10: Digital & Innovation
DIGITAL & INNOVATION 10 Electrification Urban Air Mobility • Increasing congestion in our cities • <100 seats aircraft could use hybrid propulsion • 2 entirely new systems by 2030 autonomous fully-electric urban flying vehicles to be tested in 2018 Data exploitation Connectivity • Interconnection of
Slide 11: Airbus in the U.S.
AIRBUS IN THE U.S. 11 3,500+ employees US Procurement >$12bn A3, California FAL & Eng. Center, Alabama Engineering Center, Kansas OneWeb, Florida Helico. Production lines, Mississippi Helico. Training & Delivery Center, Texas
Slide 12: Q1 2018 Roadshow Presentation
Q1 2018 Roadshow Business Financial Equity Presentation Update Update Story
Slide 13: Commercial positioning
Q1 2018 COMMERCIAL POSITIONING 13 Consolidated Airbus Order Book Consolidated Airbus by Division External Revenue by Division Q1 2018 22% Order Intake (net) 45 Airbus (in units) Order book 7,189 € 10 bn 8% t/o defence € 1.8 bn Order Intake (net) 1,288 Helicopters (in € m) Order book 13,176 70% Order
Slide 14: Q1 2018 Financial performance
Q1 2018 FINANCIAL PERFORMANCE 14 Revenues EBIT Adjusted in € bn in € bn / RoS (%) 11.4 10.1 0.1% 0.01 Q1 2017 Q1 2018 (0.02) -0.2% Q1 2017 Q1 2018 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn (0.06) (0.12) (1.3) (3.8) Q1 2017 Q1 2018 Q1 2017 Q1 2018 (1) Q1 2018 Average number o
Slide 15: Profitability
Q1 2018 PROFITABILITY 15 EBIT Performance in € bn Q1 2018 EBIT Reported of € 199 m Q1 2018 Adjustments resulting from: €+ 159 m Airbus DS Communications Inc. business 0.58 €+ 46 m $ PDP mismatch / BS revaluation 0.01 0.20 €- 20 m Compliance / Others (0.02) €+ 185 m Net Adjustments EBIT Adjusted EBIT
Slide 16: Currency hedge policy
CURRENCY HEDGE POLICY 16 IN $ BILLION Forward Sales as of Mar. 2018 Collars as of Mar. 2018 Forward Sales and Collars as of Dec. 2017 3.8 6.5 4.6 1.7 17.7 21.5 17.9 11.7 3.7 2018 2022 Average hedge rates remaining 9 months 2019 2020 2021 and beyond 1.22 1.24 1.22 1.23 1.24 € vs $ Forwards/Coll
Slide 17: Cash evolution
Q1 2018 CASH EVOLUTION 17 IN € BILLION 0.2 0.0 -3.8 -0.1 13.4 Free Cash Flow : € - 3.7 bn t/o M&A (2): € + 0.2 bn 9.8 t/o Customer Financing: € - 0.0 bn Free Cash Flow before M&A and Customer Financing € - 3.8 bn Net Cash position Gross Cash Flow from Change in Working Cash used for Pensions & Other
Slide 18: Q1 2018 Roadshow Presentation
Q1 2018 Roadshow Business Financial Equity Presentation Update Update Story
Slide 19: 2018 Guidance
2018 GUIDANCE 19 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 Airbus expects to deliver
Slide 20: Increasing shareholder returns
INCREASING SHAREHOLDER RETURNS 20 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 21: Earnings and FCF taking off
EARNINGS AND FCF TAKING OFF 21 EPS Growth FCF Growth Boost Performance EPS Growth A350 Turning Profitable A400M* A320 Volume and Price Working capital FX Control Hedging Impact * A400M will continue to weigh in 2018 and 2019 Box sizes for illustration purpose only