Slide 1: FY Results 2017
AIRBUS FY Results 2017 15 February 2018 Tom Enders Harald Wilhelm Chief Executive Officer 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: FY Results 2017 Highlights
FY Results 2017 Company Divisional Guidance Highlights Highlights Highlights
Slide 4: FY 2017 Highlights
FY 2017 HIGHLIGHTS 4 All 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
Slide 5: FY 2017 Commercial Positioning
FY 2017 COMMERCIAL POSITIONING 5 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 A
Slide 6: FY 2017 Financial Performance
FY 2017 FINANCIAL PERFORMANCE 6 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 7: FY 2017 Profitability
FY 2017 PROFITABILITY 7 EBIT Performance in € bn FY 2017 EBIT Reported of € 3.4 bn FY 2017 Adjustments resulting from: €- 1,299 m A400M LMC 3.96 4.25 €- 117 m Compliance 3.42 2.26 €- 7 m $ PDP mismatch / BS revaluation €+ 7 m Other AD Portfolio EBIT Adjusted EBIT Reported €- 20 m Other M&A FY 2016 F
Slide 8: Currency Hedge Policy
CURRENCY HEDGE POLICY 8 IN $ BILLION Forward Sales as of Dec. 2017 Collars as of Dec. 2017 Forward Sales and Collars as of Dec. 2016 25.3 3.8 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/C
Slide 9: FY 2017 Cash Evolution
FY 2017 CASH EVOLUTION 9 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 10: Company Divisional Highlights
FY Results 2017 Company Divisional Guidance Highlights Highlights Highlights
Slide 11: Commercial Aircraft
COMMERCIAL AIRCRAFT 11 IN € MILLION FY 2017 FY 2016 Change Deliveries by Programme (units) 2% Order Intake (net) 1,109 731 51.7% 11% Units 9% Order book 7,265 6,874 5.7% Order Intake (net) 143,361 114,938 24.7% 78% Value Order Book 950,354 1,010,200 -5.9% A320 A330 A350 A380 Deliveries (Unit
Slide 12: Helicopters
HELICOPTERS 12 IN € MILLION FY 2017 FY 2016 Change External Revenue Split Order Intake (net) 335 353 -5.1% Units Order book 692 766 -9.7% 49% 51% Order Intake (net) 6,544 6,057 8.0% Value Order Book 11,201 11,269 -0.6% Defence Civil Deliveries (Units) 409 418 -2.2% Revenues 6,450 6,652 -3.0% R&D
Slide 13: Defence and Space
DEFENCE AND SPACE 13 IN € MILLION FY 2017 FY 2016 Change External Revenue Split Order Intake (net) 8,893 15,393 -42.2% 30% Order Book 37,407 41,499 -9.9% 70% Revenues 10,804 11,854 -8.9% Platforms Services R&D Expenses 322 332 -3.0% in % of Revenues 3.0% 2.8% EBIT Adjusted 872 1,002 -13.0% in %
Slide 14: Guidance
FY Results 2017 Company Divisional Guidance Highlights Highlights Highlights
Slide 15: Introducing IFRS 15 Revenue from Contracts with Customers
INTRODUCING IFRS 15 “REVENUE FROM CONTRACTS WITH 15 CUSTOMERS” 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 16: 2018 Guidance and Dividend Proposal
2018 GUIDANCE AND DIVIDEND PROPOSAL 16 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 17: Key Priorities
KEY PRIORITIES 17 End of Decade End 2016 Earnings and FCF taking off!
Slide 18: Appendix
FY Results 2017 Appendix AIRBUS
Slide 19: Dividend per Share
DIVIDEND PER SHARE 19 IN € 180.00% [ 1.50 (1) ] 1.35 160.00% 1.30 140.00% 120.00% 100.00% 105% 80.00% 60.00% 40.00% 40% 40% 20.00% 0.00% FY 2015 FY 2016 FY 2017 Pay-out Ratio Ex-dividend date: Monday 16 April 2018 Record date: Tuesday 17 April 2018 Payment date: Wednesday 18 April 2018 (1) Board Pro
Slide 20: Expected Airbus Average Hedge Rates € vs. $
EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $ 20 Active exposure management 1.35 1.34 Average 1.33 Hedge Rates 1.33 1.33 1.31 1.31 1.30 FY 2016 1.32 1.31 1.29 1.29 FY 2017 1.29 1.27 1.27 1.27 1.25 (1) FY 2018E 1.25 1.25 1.23 1.21 1.19 1.19 1.17 1.16 1.15 Q1 Q2 Q3 Q4 FY 2018E FY 2017 FY 2016 (1) Q4 act
Slide 21: FY 2017 Detailed Income Statement and Adjustments
FY 2017 DETAILED INCOME STATEMENT AND ADJUSTMENTS 21 IN € MILLION thereof Adjustments Impact on EBIT Financial FY 2017 FY 2017 Operational HQ FX Result Adjusted Defence and Compliance and Comm. a/c Space (1) Other M&A and DS (2) EBIT 3,421 4,253 (779) (46) (7) in % of revenues 5.1% 6.4% Interest inc
Slide 22: FY 2016 Detailed Income Statement and Adjustments
FY 2016 DETAILED INCOME STATEMENT AND ADJUSTMENTS 22 IN € MILLION thereof Adjustments Impact on EBIT Financial FY 2016 FY 2016 Operational HQ FX Result Adjusted Defence Dassault Com. Commercial Helicopters and Sale Aircraft Aircraft (1) Space(2) /Gemini and DS(3) EBIT 2,258 3,955 (366) (42) (1,067)
Slide 23: Q4 2017 Key Figures
Q4 2017 KEY FIGURES 23 IN € MILLION Q4 2017 Q4 2016 Order Intake 106,900 61,262 Revenues 23,814 23,876 EBIT Adjusted 2,457 1,547 EBIT 1,109 (98) Net Income 1,022 (816) FCF before M&A 6,630 5,885 FCF before M&A and Customer Financing 6,293 5,592 Q4 2017 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Q4 2016 IN € MI
Slide 24: Airbus: Strong Liquidity Position as at December 2017
AIRBUS: STRONG LIQUIDITY POSITION AS AT 31 DECEMBER 2017 24 € 3.0 bn Credit Facility: Credit Facility (RSCF) Maturity 2021, undrawn Fully committed by 40 banks No financial covenants, no MAC clause € 11.2 bn Financing Liabilities: Financing Liabilities of which long-term : € 9.0 bn Includes
Slide 25: Detailed Free Cash Flow
DETAILED FREE CASH FLOW 25 IN € MILLION FY 2017 FY 2016 Net Cash position at the beginning of the period 11,113 10,003 Gross Cash Flow from Operations (1) 4,451 3,565 Change in working capital (2) 266 346 Cash used for investing activities (3) (982) (730) of which Industrial Capex (additions) (4) (2
Slide 26: Net Cash Position
NET CASH POSITION 26 IN € MILLION Dec. 2017 Dec. 2016 Gross Cash 24,587 21,591 Financing Debts (11,196) (10,478) Short-term Financing Debts (2,212) (1,687) Long-term Financing Debts (8,984) (8,791) Reported Net Cash 13,391 11,113 Airbus non-recourse debt 29 43 Net Cash excl. non-recourse 13,420 11,1
Slide 27: Customer Financing Exposure
CUSTOMER FINANCING EXPOSURE 27 IN € MILLION Dec. 2017 Dec. 2016 Dec. 2017 Dec. 2016 Commercial Aircraft Helicopters Closing rate € 1 = $1.20 $ 1.05 $ 1.20 $ 1.05 Total Gross Exposure 1,264 1,572 135 119 of which off-balance sheet 144 182 4 21 Estimated value of collateral (953) (1,157) (64) (60) Net
Slide 28: Airbus Commercial Aircraft Customer Financing
AIRBUS COMMERCIAL AIRCRAFT CUSTOMER FINANCING 28 IN € BILLION Additions Sell Down Amortization Net change 1.5 1.5 1.0 0.9 1.0 0.9 0.9 0.8 0.8 0.7 Commercial Aircraft 0.6 0.5 0.6 0.5 0.6 0.6 0.4 0.3 Customer Financing Gross Exposure (0.3) (0.6) (0.5) (0.7) (0.7) (0.2) (0.2) (0.7) (0.7) (0.7) (0.7) (0
Slide 29: Balance Sheet Highlights: Assets
BALANCE SHEET HIGHLIGHTS: ASSETS 29 IN € MILLION Dec. 2017 Dec. 2016 Non-current Assets 53,941 55,037 of which Intangible & Goodwill 11,629 12,068 of which Property, plant & equipment 16,610 16,913 of which Investments & Financial assets 5,882 5,263 of which positive hedge mark-to-market 2,901 893 o
Slide 30: Balance Sheet Highlights: Liabilities
BALANCE SHEET HIGHLIGHTS: LIABILITIES 30 IN € MILLION Dec. 2017 Dec. 2016 Total Equity 13,351 3,652 of which OCI (Other Comprehensive Income) 2,742 (4,845) of which Non-controlling interests 3 (5) Non-current liabilities 44,455 50,789 of which pensions 8,025 8,342 of which other provisions 2,128 2,4
Slide 31: Shareholding Structure as at December 2017
SHAREHOLDING STRUCTURE AS AT 31 DECEMBER 2017 31 Free Float 73.6% 4.2% 11.1% Shareholder Agreement 26.4% 11.1% SOGEPA 11.1% GZBV 11.1% 73.6% SEPI 4.2% Treasury Shares 0.0% 774,556,062 shares issued as at 31 December 2017
Slide 32: Quarterly Order Intake Breakdown (Cumulative)
QUARTERLY ORDER INTAKE BREAKDOWN (CUMULATIVE) 32 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 1,153 4,311 30,272 32,302 40,814 63,103 143,361 114,938 Helicopters 1,417 1,004 3,630 2,338 4,729 3,588 6,544 6,057 Defence and Space (1) 1,521 2,515 3,616 5,189 5,71
Slide 33: Quarterly Order Book Breakdown (Cumulative)
QUARTERLY ORDER BOOK BREAKDOWN (CUMULATIVE) 33 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 981,958 904,589 932,291 930,885 897,128 939,079 950,354 1,010,200 Helicopters 11,392 11,615 11,996 11,421 11,636 11,075 11,201 11,269 Defence and Space (1) 39,421 42,59
Slide 34: Quarterly Revenues Breakdown (Cumulative)
QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) 34 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 9,825 8,668 21,789 21,061 32,643 31,511 50,958 49,237 Helicopters 1,291 1,158 2,921 2,687 4,388 4,282 6,450 6,652 Defence and Space (1) 2,114 2,534 4,625 5,440 6,733 7,71
Slide 35: Quarterly EBIT Breakdown (Cumulative)
QUARTERLY EBIT BREAKDOWN (CUMULATIVE) 35 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 336 289 1,078 420 1,518 773 3,428 1,543 Helicopters (2) 33 93 144 165 200 337 308 Defence and Space (1) 620 88 816 475 900 579 212 (93) HQ / Elim. (102) (48) (196) 812 (271)
Slide 36: Quarterly EBIT Adjusted Breakdown (Cumulative)
QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE) 36 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 281 406 954 1,269 1,545 1,836 3,554 2,811 Helicopters (2) 33 93 144 165 200 337 350 Defence and Space (1) 63 107 248 322 357 436 872 1,002 HQ / Elim. (102) (48) (196
Slide 37: FY 2017 IFRS vs. APM Cash Flow Reconciliation
FY 2017 IFRS VS. APM CASH FLOW RECONCILIATION 37 IN € BILLION FY 2017 IN € BILLION FY 2017 Cash provided by (used for) operating activities 4.5 Cash provided by (used for) operating activities 4.5 t/o Reimbursement from / contribution to plan assets (0.5) Cash provided by (used for) investing activi
Slide 38: 2016 Quarterly EBIT before One-off to EBIT Adjusted Reconciliation
2016 QUARTERLY EBIT* BEFORE ONE-OFF TO EBIT ADJUSTED RECONCILIATION 38 IN € MILLION Q1 H1 EBIT* EBIT* Exceptionals EBIT Adjusted Exceptionals EBIT Adjusted before one-off before one-off Commercial Aircraft 407 (1) 406 1,270 (1) 1,269 Helicopters 33 0 33 144 0 144 Defence and Space 109 (2) 107 325 (3
Slide 39: Glossary on Alternative Performance Measures (APM)
GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM) 39 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