Slide 1: 9m 2010 Earnings
9m 2010 Earnings Conference Call, 12th November 2010 Hans Peter Ring CFO
Slide 2: Safe Harbour Statement
2 Safe Harbour Statement 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: Group Highlights, Financial Highlights, Divisional Performance, Guidance
Group Highlights Financial Highlights Divisional Performance Guidance
Slide 4: 9m 2010 Group Highlights
4 9m 2010 Group Highlights Business Highlights • Improvement in commercial aircraft environment confirmed: – Airbus net orders reached 328 in 9m 2010 compared to 123 in 9m 2009; – Increasing Long Range production rates to 9 per month in Q1 2012; • EADS order intake more than double the 2009 level at
Slide 5: Group Highlights, Financial Highlights, Divisional Performance, Guidance
Group Highlights Financial Highlights Divisional Performance Guidance
Slide 6: 9m 2010 Financial Highlights
6 9m 2010 Financial Highlights in € bn 9m 2010 9m 2009 Change Revenues 31.6 29.7 +6% of which Defence 7.9 7.0 +13% EBIT* before one-off 0.8 1.7 -50% Order intake 57.7 24.6 +135% in € bn Sept. 2010 Dec. 2009 Change Total Order book** 426.4 389.1 +10% of which Defence 56.4 57.3 -2% • Higher level of c
Slide 7: 9m 2010 EBIT* Before One-off
7 9m 2010 EBIT* Before One-off EADS Airbus in € bn Group Division EBIT* before one-off 2010 (See slide 22 for Airbus Commercial split) 0.83 0.28 % Revenues 2.6 % 1.3 % One-off impacts: • Eurocopter one time effects include a charge and margin adjustment for (0.07) NH90, restructuring and KUH technic
Slide 8: 9m 2010 Profit & Loss Highlights
8 9m 2010 Profit & Loss Highlights 9m 2010 9m 2009 in % of in % of €m Revenues €m Revenues EBIT* 784 2.5% 1,089 3.7% Self-financed R&D** 2,038 6.5% 1,834 6.1% EBIT* before R&D 2,822 9.0% 2,923 9.8% Interest result (176) (0.6%) (89) (0.3%) Other financial result (276) (0.9%) (526) (1.8%) Taxes (96) (
Slide 9: Currency Hedge Policy
9 Currency Hedge Policy • Approximately 50% of EADS’ US$ revenues naturally hedged by US$ procurement; • In 9m 2010, hedges of $ 13.3 bn* matured at an average hedge rate of € 1 = $ 1.35; • In 9m 2010, new hedge contracts of $ 25.3 bn** were added at an average rate of € 1= $ 1.33***. EADS hedge por
Slide 10: Free Cash Flow
10 Free Cash Flow in € m 9m 2010 9m 2009 Net cash position at the beginning of the period 9,797 9,193 Gross Cash Flow from Operations* 1,553 1,820 Change in working capital 531 (1,838) of which Customer Financing (91) (290) Cash used for investing activities** (1,293) (1,164) of which Industrial Cap
Slide 11: Group Highlights, Financial Highlights, Divisional Performance, Guidance
Group Highlights Financial Highlights Divisional Performance Guidance
Slide 12: Airbus Division
12 Airbus Division Airbus Division Airbus Commercial Airbus Military (after interco elimination) (excl. A400M) (Former MTAD, incl. A400M) €m 9m 2010 9m 2009 9m 2010 9m 2009 9m 2010 9m 2009 restated restated b) Deliveries 391 a/c a) 368 a/c 380 a/c 358 a/c 13 a/c 10 a/c Revenues 21,740 20,193 20,446
Slide 13: Airbus Division
13 Airbus Division Airbus Commercial (excl. A400M) Revenues +8% EBIT* -56% • Favourable volume and mix effect; • Favourable volumes and mix, pricing improvement and • Pricing improvement; Power8 reduced by: • 380 deliveries: 300 SA, 66 LR, 14 A380; – Impact from fx effects (€ - 0.5 bn) see slide 21;
Slide 14: Eurocopter
14 Eurocopter €m 9m 2010 9m 2009 Overview • Start of a positive order trend compared to 2009; 230 net Revenues 3,085 3,039 orders in 9m 2010 vs. 179 in 9m 2009. Cancellation trend slowing. R&D self-financed** 135 107 • Slow recovery in civil market, high number of second hand in % of revenues 4.4% 3
Slide 15: Astrium
15 Astrium €m 9m 2010 9m 2009 Revenues stable: • Positive volume effects across core businesses Revenues 3,226 3,228 compensate the one-time catch up effect for in-orbit incentive schemes booked in 2009 (- € 0.2 bn). R&D self-financed 50 52 in % of revenues 1.5% 1.6% EBIT* 158 155 EBIT* +2% in % of
Slide 16: Cassidian
16 Cassidian €m 9m 2010 9m 2009 Defence Budget Pressure • No significant impact in 2010; Revenues 3,470 3,296 • Looking forward: stable revenues, limited EBIT impact R&D self-financed 181 138 from higher R&D and less favourable mix. in % of revenues 5.2% 4.2% EBIT* 204 220 Revenues +5% in % of reven
Slide 17: Other Businesses
17 Other Businesses €m 9m 2010 9m 2009 Revenues +11% • Higher deliveries and asset management at ATR; Revenues 805 723 • Ramp-up in LUH with 36 deliveries in 9m 2010; R&D self-financed 6 3 • Lower aerostructures revenues at Sogerma. in % of revenues 0.7% 0.4% EBIT* (6) 3 EBIT* negative in % of reven
Slide 18: Group Highlights, Financial Highlights, Divisional Performance, Guidance
Group Highlights Financial Highlights Divisional Performance Guidance
Slide 19: Guidance
19 Guidance 2010 at €1: $1.35 Airbus Orders & Deliveries: Airbus gross orders up to 500 aircraft; Airbus deliveries should be slightly more than 500. Revenues: EADS revenues more than € 44 billion. EBIT* before one off: EADS confirms EBIT* before one off at around € 1.2 billion. EBIT*: – Going forwa
Slide 20: Appendix
Appendix
Slide 21: 9m 2010 Forex EBIT* Impact Bridge
21 9m 2010 Forex EBIT* Impact Bridge Forex impact on EBIT* ( in € bn ) BRIDGE • Revaluation of Airbus Commercial LMC provisions (0.02) • Revaluation of Airbus Military A400M provision 0.08 • Deterioration of hedge rates (€: $ 1.24 to 1.35) (0.85) out of which Airbus (0.82) • Other one-off forex effe
Slide 22: 9m 2010 Airbus Division EBIT* Before One-off detail
22 9m 2010 Airbus Division EBIT* Before One-off detail Division Commercial in € bn EBIT* before one-off 2010 0.28 0.28 % Revenues 1.3% 1.4 % One-off impacts: • Currency effect from revaluation of Loss Making Contract provisions A380, A350 (€ +0.03 bn), A400M (€ -0.03 bn) 0.00 0.03 • $ PDP mismatch a
Slide 23: 9m 2009 EBIT* Before One-off
23 9m 2009 EBIT* Before One-off EADS Airbus in € bn Group Division EBIT* before one-off 2009 1.66 1.09 % Revenues (excl. A400M early stage revenues: € 0.4 bn) 5.6% 5.5% One-off impacts: • Impact of A400M Early Stage Accounting** (0.12) (0.12) • Revaluation of all LMCs ($ and £)*** (0.06) (0.06) • $
Slide 24: 9m 2010 Financial Highlights
24 9m 2010 Financial Highlights 9m 2010 9m 2009 in % of in % of €m Revenues €m Revenues Revenues 31,554 29,723 self-financed R&D** 2,038 6.5% 1,834 6.1% EBITDA* 1,900 6.0% 2,283 7.7% EBIT* 784 2.5% 1,089 3.7% EBIT* before R&D 2,822 9.0% 2,923 9.8% Net income 198 0.6% 291 1.0% EPS*** € 0.24 € 0.36 Ne
Slide 25: Shareholding structure
25 Shareholding structure Contractual Partnership Free float SOGEADE SEPI Daimler Lagardère incl. & Minor direct holdings: French French State: 0.06% State Treasury shares 0.39% 22.46% 5.47% 22.46%* 50.39% 49.61% as at 30th September 2010 * On February 9, 2007, Daimler reached an agreement with a co
Slide 26: Expected EADS Average Hedge Rates € vs. $
26 Expected EADS Average Hedge Rates € vs. $ Average hedge rates 1.50 1.40 1.37 1.35 1.36 1.35 1.30 1.32 1.33 1.29 1.26 1.25 1.19 1.20 1.10 Q1 Q2 Q3 Q4 FY 2009 Average FY 2009 2010e Average FY 2010e EADS – 9m 2010 earnings
Slide 27: Provision Consumption excluding A400M (as at 30 Sep 2010)
27 Provision Consumption excluding A400M (as at 30 Sep 2010) 3 2 in Bn € 1 0 Closing < 2013 2013- 2014 > 2014 09/2010 Restructuring P ro visio ns Liquidated Damages LM C EADS – 9m 2010 earnings
Slide 28: Airbus Customer Financing
28 Airbus Customer Financing Active exposure management Additions and Disposals Net Exposure fully 2.5 to Airbus customer financing gross exposure in $ bn provisioned Additions Sell Down Amortisation 1.5 1.5 1.4 0.6 0.6 Gross Net 0.5 1.0 0.9 0.3 0.5 1.5 0.8 Exposure 0.6 0.4 (0.9) (0.7) (1.3) (0.37)
Slide 29: Customer Financing Exposure
29 Customer Financing Exposure 100% AIRBUS 50% ATR 100% EC in € m Sept 2010 Dec 2009 Sept 2010 Dec 2009 Sept 2010 Dec 2009 Closing rate € 1 = $ 1.36 $ 1.44 Total Gross exposure 1,365 1,260 120 159 84 76 of which off-balance sheet 322 335 41 47 48 47 Estimated value of collateral (802) (772) (108) (1
Slide 30: Q3 2010 Key Figures
30 Q3 2010 Key Figures in € bn Q3 2010 Q3 2009 Revenues 11.2 9.5 EBIT* 0.4 0.2 FCF before customer financing** 1.4 0.1 New orders 27.0 7.4 Revenues EBIT* in € m Q3 2010 Q3 2009 Q3 2010 Q3 2009 Airbus 7,887 6,242 192 4 Eurocopter 976 1,131 50 66 Astrium 1,116 1,034 52 56 Cassidian 1,287 1,135 94 77 H
Slide 31: EBIT* Calculation
31 EBIT* Calculation in € m 9m 2010 9m 2009 EBIT* 784 1,089 Exceptionals: Disposal (fixed assets in other income) 0 (1) Fair value depreciation (33) (38) Profit before finance cost 751 1,050 and income taxes EADS – 9m 2010 earnings * Pre-goodwill impairment and exceptionals
Slide 32: Net Income pre-exceptionals
32 Net Income pre-exceptionals in € m 9m 2010 9m 2009 Net income* 221 318 EPS* (1) € 0.27 € 0.39 Exceptionals: Fair value adjustment (33) (39) Related tax impact 10 12 Net income 198 291 EPS (1) € 0.24 € 0.36 * Pre-goodwill impairment and exceptionals; the term “exceptionals” refers to such items as
Slide 33: Net Cash Position
33 Net Cash Position in € m Sept. 2010 Dec. 2009 Sept. 2009 Gross cash 14,675 15,093 13,159 Financing Debts Short-term Financing Debts* (1,425) (2,429) (2,226) Long-term Financing Debts (2,924) (2,867) (2,874) Reported Net cash 10,326 9,797 8,059 Airbus non-recourse debt 536 652 627 Net cash excl. n
Slide 34: EADS: Strong Liquidity Position as at 30 Sept. 2010
34 EADS: Strong Liquidity Position as at 30 Sept. 2010 • Maturity 2012 € 3.0 bn • Undrawn • Fully committed by 32 banks Credit Facility • No financial covenants • No MAC clause € 4.35 bn EMTN progamme • Long term rating : Financing Liabilities • Moody’s: A1 (incl. € 1.5 bn liabilities of EMTN) • S &
Slide 35: Balance Sheet Highlights: Assets
35 Balance Sheet Highlights: Assets in € m Sept. 2010 Dec. 2009 Non-current Assets 39,976 37,792 of which Intangible & Goodwill 11,109 11,060 of which Property, plant & equipment 12,892 12,508 of which Investments & Financial assets 4,848 4,724 of which positive hedge mark-to-market 899 1,307 of whi
Slide 36: Balance Sheet Highlights: Liabilities
36 Balance Sheet Highlights: Liabilities in € m Sept. 2010 Dec. 2009 Total Equity 8,738 10,641 of which OCI (Other Comprehensive Income) 991 2,646 of which Non-controlling interests 94 106 Total Non-current liabilities 30,537 27,287 of which pensions 5,489 5,080 of which other provisions 3,157 3,057
Slide 37: Quarterly Revenues Breakdown (cumulative)
37 Quarterly Revenues Breakdown (cumulative) in € m Q1 H1 9m FY 2010 2009 2010 2009 2010 2009 2010 2009 Airbus Division 6,264 5,883 13,853 13,951 21,740 20,193 . 28,067 Thereof Airbus Comm.* 5,989 5,470 12,965 13,204 20,446 18,949 . 26,370 Thereof Airbus Military 384 456 1,007 855 1,540 1,637 . 2,23
Slide 38: Quarterly EBIT* Breakdown (cumulative)
38 Quarterly EBIT* Breakdown (cumulative) in € m Q1 H1 9m FY 2010 2009 2010 2009 2010 2009 2010 2009 Airbus Division 7 89 104 519 296 523 . (1,371) Thereof Airbus Comm.** 6 205 241 737 328 743 . 386 Thereof Airbus Military 1 (116) (161) (218) (35) (216) . (1,754) Eurocopter 26 38 71 99 121 165 . 263
Slide 39: Quarterly Order-intake Breakdown (cumulative)
39 Quarterly Order-intake Breakdown (cumulative) in € m Q1 H1 9m FY 2010 2009 2010 2009 2010 2009 2010 2009 Airbus Division 11,158 1,792 24,542 6,194 47,949 11,335 . 23,904 Thereof Airbus Comm.* 11,035 1,667 24,302 6,025 47,384 10,487 . 23,461 Thereof Airbus Military 146 164 285 247 626 1,049 . 637
Slide 40: Quarterly Order-book Breakdown (cumulative)
40 Quarterly Order-book Breakdown (cumulative) in € m Q1 H1 9m FY 2010 2009 2010 2009 2010 2009 2010 2009 Airbus Division 366,051 365,412 405,027 343,584 377,325 332,035 . 339,722 Thereof Airbus Comm.* 346,182 345,123 385,677 323,497 358,110 311,674 . 320,321 Thereof Airbus Military 21,155 21,999 20