Airbus Se · EURONEXT:AIR
Airbus — Investor Presentation (March 2016)
24 slides from Airbus's investor presentation, Mar 1, 2016
Slide 1: Airbus Group 2016 Capital Markets Update
AIRBUS GROUP 2016 CAPITAL MARKETS UPDATE NEW YORK, 1 MARCH 2016 HARALD WILHELM Chief Financial Officer
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: CFO Agenda
AIRBUS GROUP 2016 CAPITAL MARKETS UPDATE 3 CFO AGENDA MARKET ENVIRONMENT PERFORMANCE ROADMAP
Slide 4: CFO Agenda
4 CFO AGENDA People Manage risks & opportunities for bids and campaigns Drive business performance Lean & support programme execution Efficient Processes Develop “Enterprise Risk Management” Systems Increase capital efficiency Digital Driving value
Slide 5: CFO Agenda
4 CFO AGENDA People Manage risks & opportunities for bids and campaigns Drive business performance Lean & support programme execution Efficient Processes Develop “Enterprise Risk Management” Systems Increase capital efficiency Digital Driving value
Slide 6: CFO Agenda
4 CFO AGENDA People Manage risks & opportunities for bids and campaigns Drive business performance Lean & support programme execution Efficient Processes Develop “Enterprise Risk Management” Systems Increase capital efficiency Digital Driving value
Slide 7: CFO Agenda
4 CFO AGENDA People Manage risks & opportunities for bids and campaigns Drive business performance Lean & support programme execution Efficient Processes Develop “Enterprise Risk Management” Systems Increase capital efficiency Digital Driving value
Slide 8: CFO Agenda
4 CFO AGENDA People Manage risks & opportunities for bids and campaigns Drive business performance Lean & support programme execution Efficient Processes Develop “Enterprise Risk Management” Systems Increase capital efficiency Digital Driving value
Slide 9: 2012 – 2015 Financial Performance
2012 – 2015 FINANCIAL PERFORMANCE 5 Revenues EBIT* before one-off and RoS CAGR 12% CAGR 4% 6.4% in € bn in € bn 5.2% 4.07 4.13 3.54 64 2.96 61 56 58 2012 2013 2014 2015 2012 2013 2014 2015 EBIT* reported EPS reported CAGR 24% CAGR 33% in € bn in € 4.04 4.09 3.43 2.62 2.99 2.14 1.86 1.46 2012 2013 20
Slide 10: 2012 – 2015 FCF Performance
2012 – 2015 FCF PERFORMANCE 6 FCF before M&A Evolution Total Investments ~ € 3 bn ~ € 17 bn 5.0 4.9 3.6 3.3 in € bn in € bn 1.4 1.1 1.2 -0.8 2012 2013 2014 2015 2012 2013 2014 2015 FCF before M&A FCF WC Capex Significant investment, controlled inventory build for future growth Emphasis on other work
Slide 11: 2012 – 2015 Shareholder Returns
2012 – 2015 SHAREHOLDER RETURNS 7 Dividend Total Shareholder Returns CAGR 29% 1.40 1.20 1.30 3.0 2.5 0.75 in € bn 0.90 2.0 in € 0.60 1.5 0.40 1.0 0.5 39% 40% 40% 38% 0.0 (0.10) 2012 2013 2014 2015 2012 2013 2014 2015 2016 * Proposal DPS Payout Ratio Dividend Share Buyback Dividend policy since 2013,
Slide 12: 2012 – 2015 Financial Flexibility and Credit Rating
2012 – 2015 FINANCIAL FLEXIBILITY AND CREDIT RATING 8 19.1 16.5 16.4 14.1 10.0 in € bn 9.1 11.7 8.5 7.3 9.1 4.8 5.6 3.0 3.0 3.0 3.0 2012 2013 2014 2015 Credit Facility Financing Liabilities Net Cash Total Gross Cash Maximise and diversify access to liquidity, maintain financial flexibility and secur
Slide 13: CFO Agenda
AIRBUS GROUP 2016 CAPITAL MARKETS UPDATE 13 CFO AGENDA MARKET ENVIRONMENT PERFORMANCE ROADMAP
Slide 14: Market Environment – GDP / Air Traffic
Commercial Symposium - Financial Update - Harald Wilhelm January 2016 MARKET ENVIRONMENT – GDP / AIR TRAFFIC 10 December 2015 Passenger Traffic % YoY 8% 8% +6.1% 6% 6% 4% 4% 2% 2% 0% 0% World real GDP World passenger traffic (ASKs) -2% -2% -4% -4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 15: Market Environment – Oil Prices / Backlog
MARKET ENVIRONMENT – OIL PRICES / BACKLOG 11 End of year Quarterly Backlog average oil price $ 7,000 120 110 6,500 100 6,000 90 80 5,500 70 60 5,000 50 4,500 40 30 4,000 20 2013 2014 2015 Cancellations rate* 1.5% 3.8% 0.9% Oil price drops, commercial momentum continues Cancellations below historical
Slide 16: Market Environment – Airline Profitability
Commercial Symposium - Financial Update - Harald Wilhelm January 2016 MARKET ENVIRONMENT – AIRLINE PROFITABILITY 12 Airline Profitability Orders and Deliveries 40 10% 1,600 30 1,400 8% 20 1,200 6% in $ bn 1,000 10 4% 800 0 600 2% -10 400 -20 0% 200 -30 -2% 0 2008 2009 2010 2011 2012 2013 2014 2015 2
Slide 17: Market Environment – Interest Rates / Airline Financing
Commercial Symposium - Financial Update - Harald Wilhelm January 2016 MARKET ENVIRONMENT – INTEREST RATES / AIRLINE FINANCING 13 Interest Rates Financing Sources for Airbus Deliveries (in %) 2015: 635 A/C 100% Manufacturer 2% Capital markets 6.0 6% 6% 90% 7% 5.0 5% ECA 80% 4.0 4% 70% 3.0 3% 60% Less
Slide 18: Market Environment – FX / Hedging
Commercial Symposium - Financial Update - Harald Wilhelm MARKET ENVIRONMENT – FX / HEDGING 14 EUR / USD Exchange Rates Hedging Portfolio 2015: $ 102 bn at $ 1.28 2014: $ 88 bn at $ 1.33 1.70 1.60 25.5** 1.50 Spot rate: 1.09 Forward 2 years (2017): 1.13 3.8 1.40 Forward 3 years (2018): 1.15 Forward 4
Slide 19: CFO Agenda
AIRBUS GROUP 2016 CAPITAL MARKETS UPDATE 19 CFO AGENDA MARKET ENVIRONMENT PERFORMANCE ROADMAP
Slide 20: Driving Earnings Performance
16 DRIVING EARNINGS PERFORMANCE End of decade Boost Performance R&D Reduction A350 Turning Profitable A320 Volume and Price FX Impact € 3.43 EPS 2015 A330 Rate Reduction & Disposals in Defence & Space Significant EPS growth potential * Box sizes for illustration purpose only
Slide 21: A320 – Ramp Up
A320 – RAMP UP 17 OPERATIONAL FINANCIAL Robust Backlog Volume Increase Aircraft Performance Neo Premium Supply Chain Management Recurring Cost Control Productivity & Quality Inventory Lead Time Reduction Additional EBIT and FCF contribution from A320
Slide 22: A350 – Ramp Up
A350 – RAMP UP 18 OPERATIONAL FINANCIAL Robust Backlog Product Positioning Aircraft Performance Rate Increase Supply Chain Management Recurring Cost Management Productivity & Quality Inventory Lead Time Optimisation Secure A350 ramp-up on the way to profitability
Slide 23: Driving Cash Performance
19 DRIVING CASH PERFORMANCE CASH CONVERSION End of decade Capex Reduction Working Capital Control Business Performance 2015 FCF (before M&A) FCF generation & increasing cash conversion by end of decade * Box sizes for illustration purpose only
Slide 24: Conclusion: Key Takeaways
20 CONCLUSION: KEY TAKEAWAYS Delivering on commitments Driving programme execution and competitiveness Innovation and digital driving future value Substantial EPS and FCF growth Sustainable shareholder returns Enhancing shareholder value and securing the future