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Airbus — EADS — H1 2012 Earnings Presentation

39 slides from Airbus's earnings presentation, Jul 27, 2012

  1. Slide 1: H1 Results 2012

    H1 Results 2012 27 July 2012 Tom Enders Chief Executive Officer Harald Wilhelm Chief Financial Officer

  2. 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

  3. Slide 3: H1 Results 2012

    H1 Results 2012 Highlights & Key Financials Divisional Performance Guidance 2012 & Outlook

  4. Slide 4: H1 Highlights

    4 H1 HIGHLIGHTS Commercial Performance on track Solid order activity for Eurocopter, Astrium, Cassidian and Airbus Military; Ongoing commercial momentum at Airbus Commercial; Record backlog a platform for future growth, providing visibility and stability in the current macro environment. Globalisati

  5. Slide 5: CFO Introduction

    5 CFO Introduction EADS H1 Earnings 2012

  6. Slide 6: H1 2012 Financial Highlights

    6 H1 2012 Financial Highlights in € bn H1 2012 H1 2011 Change Revenues 24.9 21.9 +14% of which Defence 4.8 4.9 -2% EBIT* before one-off 1.4 0.7 +89% Order intake** 28.2 58.1 - 51% x% in € bn June 2012 Dec. 2011 Change Total Order book** 551.7 541.0 +2% of which Defence 51.9 52.8 -2% Revenue growth t

  7. Slide 7: H1 2012 EBIT* Before One-off

    7 H1 2012 EBIT* Before One-off in € bn EADS Airbus Airbus Group Division Commercial EBIT* before one-off 2012 1.36 0.83 0.83 % Revenues 5.5% 4.8% 5.0% One-off impacts: (0.12) (0.12) (0.12) A350 programme update A380 wing rib feet update ** (0.18) (0.18) (0.18) $ PDP mismatch and balance sheet revalu

  8. Slide 8: H1 2012 Profit & Loss Highlights

    8 H1 2012 Profit & Loss Highlights H1 2012 H1 2011 in % of in % of €m Revenues €m Revenues EBIT* 1,078 4.3% 563 2.6% Self-financed R&D** 1,425 5.7% 1,409 6.4% EBIT* before R&D 2,503 10.0% 1,972 9.0% Interest result (143) (0.6%) (97) (0.4%) Other financial result (96) (0.4%) (269) (1.2%) Taxes (227)

  9. Slide 9: Currency Hedge Policy

    9 Currency Hedge Policy Approximately 50% of EADS’ US$ revenues are naturally hedged by US$ procurement; In H1 2012, hedges of $ 10bn* matured at an average hedge rate of € 1 = $ 1.38; In H1 2012, new hedge contracts of $ 19 bn* were added at an average rate of € 1= $ 1.31**. EADS hedge portfolio*,

  10. Slide 10: Free Cash Flow

    10 Free Cash Flow in € m H1 2012 H1 2011 Net cash position at the beginning of the period 11,681 11,918 Gross Cash Flow from Operations* 2,129 1,083 Change in working capital (2,808) (30) of which Customer Financing (80) 102 Cash used for investing activities** (1,072) (1,237) of which Industrial Ca

  11. Slide 11: H1 Results 2012

    11 H1 results 2012 Highlights & Key Financials Divisional Performance Guidance 2012 & Outlook EADS H1 Earnings 2012

  12. Slide 12: Airbus Division

    12 Airbus Division Airbus Division Airbus Commercial Airbus Military (after elimination) in € m H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 c) Deliveries (units) 285 a)a/c 263 a/c 278(+1)a/c 258 a/c 7 a/c 7 a/c Revenues 17,246 15,312 16,585 14,464 843 1,112 R&D self-financed** 1,128 1,134 1,121

  13. Slide 13: Airbus Division

    13 Airbus Division Airbus Commercial Revenues +15% EBIT* before one-off at € 830m (+152% vs. H1 2011; RoS 5%) • 278 deliveries with revenue recognition: • Operational improvement driven by volume and better pricing, net of thereof 10 A380, 219 SA, 49 LR. escalation; • Increased volume; • R&D stable;

  14. Slide 14: Eurocopter

    14 Eurocopter Revenues in € m H1 2012 H1 2011 Solid revenue increase driven by Revenues 2,771 2,171 Favourable mix from Super Puma deliveries; R&D self-financed** 131 102 Increase in repair and overhaul services activity; in % of revenues 4.7% 4.7% Integration of Vector Aerospace. EBIT* 199 94 in %

  15. Slide 15: Astrium

    15 Astrium Revenues + 13% in € m H1 2012 H1 2011 Increase mainly related to Vizada consolidation. Revenues 2,661 2,347 R&D self-financed 54 30 EBIT* + 26% in % of revenues 2.0% 1.3% Positive Vizada contribution; EBIT* 130 103 Increased efficiency and productivity driven by Agile; in % of revenues 4.

  16. Slide 16: Cassidian

    16 Cassidian Resilience in a challenging market environment in € m H1 2012 H1 2011 Continued strong market capture with an order intake above last Revenues 2,186 2,133 years level of € 2,8 bn. R&D self-financed 101 113 in % of revenues 4.6% 5.3% Revenues in line with last year EBIT* 88 89 in % of re

  17. Slide 17: Other Businesses

    17 Other Businesses Revenues increase in line with expectation in € m H1 2012 H1 2011 Delivery ramp up of military transport aircraft at EADS North America Revenues 721 524 and higher ATR deliveries. R&D self-financed 7 4 in % of revenues 1.0% 0.8% EBIT* improved slightly EBIT* 13 12 Mainly related

  18. Slide 18: H1 Results 2012

    18 H1 results 2012 Highlights & Key Financials Divisional Performance Guidance 2012 & Outlook EADS H1 Earnings 2012

  19. Slide 19: Guidance 2012

    19 Guidance 2012 2012 guidance is based on €/$ 1.35, as average rate Airbus Orders & Deliveries: Airbus deliveries around 580 a/c; book to bill > 1; in the range of 600 to 650 aircraft. Revenues: EADS revenues to grow by around 10% in 2012. EBIT* before one off: Based on the solid H1 performance, es

  20. Slide 20: Appendix

    Appendix Q@AIRBUS QASTRIUM @CASSIDIAN € EUROCOPTER EADS

  21. Slide 21: H1 2012 Forex EBIT* Impact Bridge

    21 H1 2012 Forex EBIT* Impact Bridge Forex impact on EBIT* (in € bn) BRIDGE Deterioration of hedge rates (€: $ 1.37 to 1.38) (0.03) Other one-off forex effect including PDP reversal 0.12 0.09 Compared to H1 2011 * Pre-goodwill impairment and exceptionals EADS H1 Earnings 2012

  22. Slide 22: H1 2012 EBIT* Before One-off by Division

    22 H1 2012 EBIT* Before One-off by Division EBIT* before One-offs Reported in € bn one-off EBIT* Airbus 0.83 (0.28) 0.55 Eurocopter 0.20 0 0.20 Astrium 0.13 0 0.13 Cassidian 0.09 0 0.09 Other Businesses 0.01 0 0.01 HQ & eliminations 0.10 0 0.10 EADS 1.36 (0.28) 1.08 * Pre-goodwill impairment and exc

  23. Slide 23: H1 2011 EBIT* Before One-off

    23 H1 2011 EBIT* Before One-off EADS Airbus Airbus in € bn Group Division Comm. EBIT* before one-off H1 2011 0.72 0.31 0.33 % Revenues 3.3% 2.0% 2.3% One off impacts: Airbus Commercial $ PDP mismatch and balance sheet revaluation (0.10) (0.10) (0.10) Other one-offs (0.01) (0.01) (0.01) Eurocopter NH

  24. Slide 24: Net Income Before One-off

    24 Net Income Before One-off in € m H1 2012 H1 2011 Net Income reported 594 109 Net Income* 607 145 One-offs in EBIT* (282) (160) One-offs Financial Result (14) (188) Tax effect on one-offs (incl. tax one-offs) 89 104 Net Income* before one-off 814 389 EPS* before one-off 1 € 1.00 € 0.48 Net Income

  25. Slide 25: H1 2012 Financial Highlights

    25 H1 2012 Financial Highlights H1 2012 H1 2011 €m in % of €m in % of Revenues Revenues Revenues 24,934 21,936 self-financed R&D** 1,425 5.7% 1,409 6.4% EBITDA* 1,972 7.9% 1,344 6.1% EBIT* 1,078 4.3% 563 2.6% EBIT* before R&D 2,503 10.0% 1,972 9.0% Net income 594 2.4% 109 0.5% EPS*** € 0.73 € 0.13 N

  26. Slide 26: Shareholding structure

    26 Shareholding structure Contractual Partnership Free float SOGEADE SEPI Daimler Lagardère incl. & Minor direct holdings: French French State: 0.06% State Treasury shares 0.58% 22.225% 5.42% 22.225%* 49.87% 50.13% as at 30th June 2012 * On 9 February 2007, Daimler reached an agreement with a consor

  27. Slide 27: Expected EADS Average Hedge Rates € vs. $

    27 Expected EADS Average Hedge Rates € vs. $ Average hedge rates 1.42 1.39 1.38 1.37 1.37 1.37 1.37 1.37 1.36 1.36 1.35 1.35 1.32 Q1 Q2 Q3 Q4 FY * 2011 Average FY 2011 2012e Average FY 2012e * Q1 2012 actual EADS H1 Earnings 2012

  28. 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 0.8 Net 0.5 1.5 1.0 0.9 0.8 0.3 0.3 Gross 0.6 0.5 0.4 0.5 Exposure (0.9) (0.7) (0.7)

  29. Slide 29: Customer Financing Exposure

    29 Customer Financing Exposure 100% AIRBUS 50% ATR 100% EC in € m June 2012 Dec.2011 June 2012 Dec.2011 June 2012 Dec.2011 Closing rate € 1 = $ 1.26 $ 1.29 Total Gross exposure 1,179 1,105 83 98 88 86 of which off-balance sheet 235 267 53 56 19 40 Estimated value of collateral (666) (627) (71) (86)

  30. Slide 30: Q2 2012 Key figures

    30 Q2 2012Key Q2 2011 Keyfigures figures in € bn Q2 2012 Q2 2011 Revenues 13.5 12.1 EBIT* 0.7 0.4 FCF before customer financing** (0.4) (0.5) New orders 16.2 49.8 Revenues EBIT* in € m Q2 2012 Q2 2011 Q2 2012 Q2 2011 Airbus 9,337 8,299 370 87 Eurocopter 1,572 1,348 134 63 Astrium 1,336 1,176 65 51 C

  31. Slide 31: EBIT* Calculation

    31 EBIT* Calculation in € m H1 2012 H1 2011 EBIT* 1,078 563 Exceptionals: Disposal of Goodwill 0 (22) Fair value depreciation (19) (20) Profit before finance cost 1,059 521 and income taxes * Pre-goodwill impairment and exceptionals EADS H1 Earnings 2012

  32. Slide 32: Net Cash Position

    32 Net Cash Position June 2012 Dec. 2011 in € m Gross cash 15,001 16,785 Financing Debts Short-term Financing Debts (1,730) (1,476) Long-term Financing Debts (3,566) (3,628) Reported Net cash 9,705 11,681 Airbus non-recourse debt 399 455 Net cash excl. non-recourse 10,104 12,136 EADS H1 Earnings 201

  33. Slide 33: EADS: Strong Liquidity Position as at 30 June 2012

    33 EADS: Strong Liquidity Position as at 30 June 2012 Refinanced in April 2011 € 3 bn Maturity 2017* , undrawn Fully committed by 39 banks Credit Facility (RSCF) No financial covenants No MAC clause EMTN programme € 5.3 bn Long term rating : Moody’s: A1 stable Financing Liabilities S & P: A – positi

  34. Slide 34: Balance Sheet Highlights: Assets

    34 Balance Sheet Highlights: Assets in € m June 2012 Dec. 2011 Non-current Assets 45,775 45,455 of which Intangible & Goodwill 12,934 12,745 of which Property, plant & equipment 14,413 14,159 of which Investments & Financial assets 4,970 5,055 of which positive hedge mark-to-market 407 486 of which

  35. Slide 35: Balance Sheet Highlights: Liabilities

    35 Balance Sheet Highlights: Liabilities in € m June 2012 Dec. 2011 Total Equity 7, 649 8,870 of which OCI (Other Comprehensive Income) (716) 153 of which Non-controlling interests 25 20 Total Non-current liabilities 33,532 32,100 of which pensions 6,279 5,628 of which other provisions 3,734 3,497 o

  36. Slide 36: Quarterly Revenues Breakdown (cumulative)

    36 Quarterly Revenues Breakdown (cumulative) in € m Q1 H1 9m FY 2012 2011 2012 2011 2012 2011 2012 2011 Airbus Division 7,909 7,013 17,246 15,312 … 22,411 … 33,103 Thereof Airbus Comm.* 7,499 6,707 16,585 14,464 … 21,120 … 31,159 Thereof Airbus Military 425 434 843 1,112 … 1,747 … 2,504 Eurocopter 1

  37. Slide 37: Quarterly EBIT* Breakdown (cumulative)

    37 Quarterly EBIT* Breakdown (cumulative) in € m Q1 H1 9m FY 2012 2011 2012 2011 2012 2011 2012 2011 Airbus Division 183 115 553 202 … 295 … 584 Thereof Airbus Comm.** 146 125 548 223 … 306 … 543 Thereof Airbus Military 11 1 2 3 … 5 … 49 Eurocopter 65 31 199 94 … 157 … 259 Astrium 65 52 130 103 … 16

  38. Slide 38: Quarterly Order-intake Breakdown (cumulative)

    38 Quarterly Order-intake Breakdown (cumulative) in € m Q1 H1 9m FY 2012 2011 2012 2011 2012 2011 2012 2011 Airbus Division 7,877 3,748 20,955 52,394 … 85,485 … 117,874 Thereof Airbus Comm .* 7,530 3,647 19,782 52,086 … 85,421 … 117,301. Thereof Airbus Military 372 105 1,271 319 … 408 … 935. Eurocop

  39. Slide 39: Quarterly Order-book Breakdown (cumulative)

    39 Quarterly Order-book Breakdown (cumulative) in € m Q1 H1 9m FY 2012 2011 2012 2011 2012 2011 2012 2011 Airbus Division 480,322 374,891 506,120 407,094 … 456,788 … 495,513 Thereof Airbus Comm .* 460,288 353,574 485,682 386,101 … 436,427 … 475,477 Thereof Airbus Military 21,272 22,487 21,661 22,061

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