Slide 1: EADS S1 2000 Semi annual reporting
Amsterdam, October 25th, 2000 EADS S1 2000 Semi annual reporting Philippe CAMUS - Rainer HERTRICH Chief Executive Officers Axel ARENDT Chief Financial Officer CF/IR Key points Integration on track Business opportunities rising Value creation targets confirmed Control of consolidation in Euro
Slide 2: Merger integration on track
MERGER INTEGRATION ON TRACK CF/IR EADS will operate as a single integrated company and will create additional value: A merger integration team has been formed early 2000 reporting to the 2 CEO and the executive management. More than 400 projects proposals to create additional value and realize i
Slide 3: Business opportunities on the rise
Business opportunities on the rise CF/IR Airbus Global market forecast projects air traffic growth at 4.88% pa over the next 20 years representing over 15000 A/C to deliver, a business Strong business environment: worth $ 1.3 trillion Î 305 A/C firm orders (end Sept.) Economic growth drive str
Slide 4: Military transport A/C and Aeronautics
Military transport A/C g Goal: Consolidate market leadership in current products (C212, C235 and C 295) and expand the family with the new heavy military airlifter A 400M. Î Active commercial campaigns in the light and medium segment (Spain, Greece, Middle East, Asia …) Î Announcement of the commitm
Slide 5: Space and Defence & Civil Systems
Space Major contracts landed Focus on improvement of since the beginning of competitiveness and profitability the year: through process and organization Î Success of the heavy optimization satellite platform Î On-going Plan to improve cost of Eurostar 3000 from Ariane 5 to meet future competitio
Slide 6: Value creation targets confirmed
Value creation targets confirmed CF/IR Commitment to Value Creation Value creation target = € 500 m value, net of € 180 m restructuring expenses distributed evenly from 2000 to 2003 Additional savings coming from the creation of AIC= 80 M€ for EADS Synergies will come mainly from: Defence & Ci
Slide 7: Implementing consolidation to create value
Value creation targets confirmed Pushing integration and increasing profitability: First examples: Î New optimized global Top down additional value marketing organization generation targets have been set Î Rationalization and adoption early to all units of common tools between the Promising resp
Slide 8: Implementing consolidation to create value; Strategic challenges
Implementing consolidation to create value Finalize consolidation through joint companies where EADS will be in control and generate added value Creation of AIC: exceptional potential of value creation making Airbus more than equal to Boeing, Creation of New MBD, a world leader in missiles, cata
Slide 9: Financials: Pro-forma key financial highlights
FINANCIALS CF/IR Pro-forma key financial highlights S1 2000 €M Revenues 10,585 EBIT DA * 1,016 EBIT * 553 EBIT margin * 5.2% * pre-goodwill and exceptional Order Intake 23,988 Backlog 118,720 CF/IR 9
Slide 10: Revenues and operating income by division
Revenues and operating income by division S1 2000 FY 1999 Revenues EBIT* Revenues EBIT* €M Airbus 6,821 516 12,639 896 Military Transport 74 (35) 241 (21) Aeronautics 1,951 53 4,280 202 Space Systems 1,084 29 2,518 99 Defence & Civil Systems 1,068 (62) 3,830 86 Eliminations and others** (413) (12) (
Slide 11: Pro forma Operating Margin; Industry seasonality
Pro forma Operating Margin €M 2000 1999 Average $ / € rate for recorded sales 0.98 1.09 Operating income 217 815 Goodwill amortisation 198 398 Depreciation on fair value adjustments 74 149 Income from investments 64 83 EBIT (pre-goodwill/exceptional) 553 1,445 in % of sales 5.2% 6.4% In line with ye
Slide 12: Pro forma change in cash position
Pro forma change in cash position S1 2000 €M Amortisation and Net Cash as of Dec. 31, 99 (946) depreciation amount to € 463, not including Cash flow from operations 659 the goodwill and fair Working capital reduction 132 value adjustment Cash flow from investing activities (959) impact Free Cash Flo
Slide 13: Balance sheet; Capital increase
Balance sheet €M S1 2000 1999 Fixed Assets 20,253 19,711 of which intangible assets 7,775 7,710 of which property, plant & equipment 8,347 7,950 of which financial assets 4,131 4,051 Current Assets 13,614 13,684 of which cash & equivalents,securities 4,971 4,750 of which working capital assets 8,643
Slide 14: Outlook
Outlook Revenues growth in 2000 expected about 7% 2000 EBIT should show a better performance than 1999 when backing out positive effect of sextant sale Strong backlog, in excess of expectations Significant growth of revenues and earnings from 2002 to 2004 to reach our 8% EBIT margin A cont