Airbus Se · EURONEXT:AIR
Airbus — Airbus Se Ord — Q3 2020 Earnings Presentation
34 slides from Airbus's earnings presentation, Oct 29, 2020
Slide 1: Q3 2020 Results Presentation
29 October 2020 Guillaume FAURY | Chief Executive Officer Dominik ASAM | Chief Financial Officer
Slide 2: Safe Harbour Statement
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 s
Slide 3: Company Highlights, Business Highlights, Guidance
Company Business Guidance Highlights Highlights Highlights
Slide 4: 9m 2020 Key Topics
9m 2020 Key Topics 4 Global air travel recovery slower than anticipated Cash containment and business adaptation on track 9m 2020 financials: FCF before M&A and Customer Financing € - 11.8 bn; EBIT Adjusted € - 0.1 bn Restructuring provision of € 1.2 bn recognised in EBIT Reported Strong
Slide 5: 9m 2020 Commercial Positioning
9m 2020 Commercial Positioning 5 Consolidated Airbus Order Book Consolidated Airbus by Division External Revenue by Division 9m 2020 9m 2019 Change Airbus 66% Order Intake 300 127 136.2% Airbus (net) Helicopters 11% (in units) Order Book 7,441 7,133 4.3% Defence and Order Intake € 30.2 bn Space 23%
Slide 6: 9m 2020 Financial Performance
9m 2020 Financial Performance 6 Revenues EBIT Adjusted in € bn in € bn / RoS (%) 9.0% 4.1 46.2 30.2 -0.4% (0.1) 9m 2019 9m 2020 9m 2019 9m 2020 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn 9m 2019 9m 2020 (4.9) 3.75 (8.2) Penalty (0.32) (3.6) Payment 9m 2019 9m 2020 (11.8) (1)
Slide 7: 9m 2020 Profitability
9m 2020 Profitability 7 EBIT Performance 9m 2020 EBIT Reported of € - 2,185 m in € bn 9m 2020 EBIT Adjustments resulting from: 4.1 3.4 € - 1,200 m Restructuring provision € - 358 m A380 programme cost € - 374 m PDP mismatch / BS revaluation (0.1) (2.2) € - 128 m Others 9m 2020 Net Adju
Slide 8: Currency Hedge Policy
Currency Hedge Policy 8 IN $ BILLION Forward Sales as of Sept. 2020 Forward Sales and Collars as of Dec. 2019 11.1 16.8 15.2 12.6 10.5 8.2 8.8 9.1 5.6 Average hedge rates 2020 2021 2022 2023 2024 2025 2026 2027 remaining 3 months € vs $ 1.27 1.21 1.24 1.23 1.26 1.27 1.29 1.30 Forwards/Collars (2) (
Slide 9: 9m 2020 Cash Evolution
9m 2020 Cash Evolution 9 IN € BILLION +1.6 -3.6 12.5 -8.7 -1.1 -0.5 Free Cash Flow before M&A: € - 11.8 bn -0.5 -0.2 t/o Customer Financing € 0.0 bn Free Cash Flow before M&A and Customer Financing € - 11.8 bn (1) (3) Net Cash Position Gross Cash Flow Penalties Change in Cash used for (2) M&A Pensio
Slide 10: Liquidity as of 30 September 2020
Liquidity as of 30 September 2020 10 SLL: € 9.3 bn Signed March 31st with 9 Banks Maturity: 12m+6m+6m (from signing day) Supplemental Liquidity Line (SLL) Term-out amounts of €5.5bn from bond issuances and €0.2bn from an USPP issuance RSCF: € 3.0 bn Credit Facility (RSCF) Maturity October 20
Slide 11: Company Highlights, Business Highlights, Guidance
Company Business Guidance Highlights Highlights Highlights
Slide 12: Airbus Commercial Aircraft
12 9m 2019 IN € MILLION 9m 2020 Change Deliveries by Programme (Units) Restated(1) Order Intake (net) 300 127 136.2% A220 5% Units Order Book 7,441 7,133 4.3% A320 83% A330 3% Deliveries Units 341 571 -40.3% A350 9% Revenues 20,271 35,572 -43.0% A380 0% R&D Expenses 1,674 1,735 -3.5% in % of Revenue
Slide 13: Helicopters
Helicopters 13 IN € MILLION 9m 2020 9m 2019 Change External Revenue Split Order Intake (net) 143 173 -17.3% Civil 46% Units Order Book 669 681 -1.8% Defence 54% Deliveries Units 169 209 -19.1% Revenues 3,623 3,712 -2.4% R&D expenses 196 216 -9.3% in % of revenues 5.4% 5.8% EBIT Adjusted 238 205 16.1
Slide 14: Defence and Space
Defence and Space 14 IN € MILLION 9m 2020 9m 2019 Change External Revenue Split Order Intake (net) 8,214 6,064 35.5% Platforms 65% Services 35% Revenues 6,936 7,706 -10.0% R&D Expenses 177 216 -18.1% in % of Revenues 2.6% 2.8% EBIT Adjusted 266 355 -25.1% in % of Revenues 3.8% 4.6% EBIT (36) 83 N/A
Slide 15: Company Highlights, Business Highlights, Guidance
Company Business Guidance Highlights Highlights Highlights
Slide 16: Guidance
Guidance 16 The Company’s Full-Year 2020 guidance was withdrawn in March. Given the continued impact of COVID-19 on the business and the associated risks, no new guidance is issued on commercial aircraft deliveries or EBIT. As the basis for its Q4 2020 guidance for free cash flow before M&A and cust
Slide 17: Key Priorities
Key Priorities 17 Manage deliveries and backlog Continued focus on cash Further implementation of restructuring plan
Slide 18: Appendix
AIRBUS piaahen 9m Results 2020 AIRBUS
Slide 19: Expected Average Hedge Rates € vs. $
Expected Average Hedge Rates € vs. $ 19 Active exposure management Average Hedge Rates 1.34 1.32 FY 2019 1.24 FY 2020E 1.22 1.29 1.27 1.24 1.23 1.21 1.21 (1) (2) 1.19 1.20 1.19 1.17 1.14 Q1 Q2 Q3 Q4 2020E 2019 (1) Q3 actual (2) Based on $ 4.1 bn hedges matured with associated EBIT impact
Slide 20: 9m 2020 Detailed Income Statement and Adjustments
9m 2020 Detailed Income Statement and Adjustments 20 thereof Adjustments Impact on EBIT 9m 2020 Financial 9m 2020 IN € MILLION Operational FX Reported Result Adjusted Defence Airbus + Defence Airbus Helicopters and Space(1) and Space(2) EBIT (2,185) (125) (1,396) (290) 0 (374) in % of Revenues -7.2%
Slide 21: 9m 2019 Detailed Income Statement and Adjustments
9m 2019 Detailed Income Statement and Adjustments 21 thereof Adjustments Impact on EBIT 9m 2019 Financial 9m 2019 IN € MILLION Operational FX Reported Result Adjusted Defence Airbus + Defence Airbus Helicopters and Space(1) and Space(2) EBIT 3,431 4,133 (225) (222) (2) (253) in % of Revenues 7.4% 9.
Slide 22: Q3 2020 Key Figures
Q3 2020 Key Figures 22 IN € MILLION Q3 2020 Q3 2019 Revenues 11,213 15,302 EBIT Adjusted 820 1,604 EBIT (626) 1,338 Net Income (Loss) (767) 989 FCF before M&A 617 (904) FCF before M&A and Customer Financing 642 (956) IN € MILLION Q3 2019 Q3 2019 Q3 2019 Q3 2020 (1) Q3 2020 (1) Q3 2020 (1) Restated R
Slide 23: Detailed Free Cash Flow
Detailed Free Cash Flow 23 IN € MILLION 9m 2020 9m 2019 Net Cash position at the beginning of the period 12,534 13,281 First time impact of IFRS 16 - (1,352) Gross Cash Flow from Operations(1) 1,612 4,538 (2) Change in working capital (12,276) (8,244) (3) Cash used for investing activities (1,612) (
Slide 24: Net Cash Position
Net Cash Position 24 IN € MILLION Sep. 2020 Dec. 2019 Gross Cash 18,095 22,682 Financing Liabilities (18,337) (10,148) Short-term Financing Liabilities (4,364) (1,959) Long-term Financing Liabilities (13,973) (8,189) Reported Net Cash (Debt) (242) 12,534 Airbus non-recourse debt 24 24 Net Cash (Debt
Slide 25: Customer Financing Exposure
Customer Financing Exposure 25 IN € MILLION Sep. 2020 Dec. 2019 Sep. 2020 Dec. 2019 Airbus Helicopters Closing rate € 1 = $ 1.17 $ 1.12 $ 1.17 $ 1.12 Total Gross Exposure 555 731 46 48 of which off-balance sheet 14 95 2 9 Estimated value of collateral (310) (530) (28) (30) Net Exposure 245 202 18 18
Slide 26: Airbus Customer Financing
Airbus Customer Financing 26 IN € BILLION Additions Sell Down Amortization Net change 0.8 1.0 0.8 0.9 0.6 0.8 0.6 0.6 0.7 0.4 0.3 0.5 0.1 0.2 Airbus Customer 0.0 (0.2) Financing Gross (0.3) (0.2) (0.7) (0.6) (0.5) (0.7) (0.6) (0.2) Exposure (0.1) (0.7) (0.7) (0.7) (0.2) (0.1) (0.0) (1.1) (0.1) (0.1)
Slide 27: Balance Sheet Highlights: Assets
Balance Sheet Highlights: Assets 27 IN € MILLION Sep. 2020 Dec. 2019 Non-current Assets 50,909 57,686 of which Intangible & Goodwill 16,394 16,591 of which Property, plant & equipment 16,666 17,294 of which Investments & other long-term financial assets 4,933 6,079 of which Contract assets 58 91 of
Slide 28: Balance Sheet Highlights: Liabilities
Balance Sheet Highlights: Liabilities 28 IN € MILLION Sep. 2020 Dec. 2019 Total Equity 1,924 5,990 of which AOCI (Accumulated Other Comprehensive Income) (1,171) (523) of which Non-controlling interests 10 15 Total Non-current liabilities 54,040 46,045 of which Pensions 9,222 7,932 of which Other pr
Slide 29: Shareholding Structure at 30 September 2020
Shareholding Structure at 30 September 2020 29 Free Float 73.9% Shareholder Agreement 26.0% SOGEPA 10.9% GZBV 10.9% SEPI 4.1% Treasury Shares 0.1% 784,064,748 shares issued at 30 September 2020
Slide 30: Quarterly Revenues Breakdown (Cumulative)
Quarterly Revenues Breakdown (Cumulative) 30 IN € MILLION Q1 H1 9m FY 2019 2019 2019 2019 2020 (1) 2020 (1) 2020 (1) 2020 Restated Restated Restated Restated(1) Airbus 7,569 9,697 12,533 24,043 20,271 35,572 54,775 Helicopters 1,202 1,007 2,333 2,371 3,623 3,712 6,007 Defence and Space 2,111 2,112 4
Slide 31: Quarterly EBIT Adjusted Breakdown (Cumulative)
Quarterly EBIT Adjusted Breakdown (Cumulative) 31 IN € MILLION Q1 H1 9m FY 2019 2019 2019 2019 2020 (1) 2020 (1) 2020 (1) 2020 Restated Restated Restated Restated(1) Airbus 191 463 (1,307) 2,193 (641) 3,593 5,947 Helicopters 53 15 152 125 238 205 422 Defence and Space 15 101 186 233 266 355 565 Elim
Slide 32: Quarterly EBIT Breakdown (Cumulative)
Quarterly EBIT Breakdown (Cumulative) 32 IN € MILLION Q1 H1 9m FY 2019 2019 2019 2019 2020 (1) 2020 (1) 2020 (1) 2020 Restated Restated Restated Restated(1) Airbus 57 319 (1,808) 2,006 (2,399) 3,165 1,794 Helicopters 53 9 152 124 238 203 414 Defence and Space (53) (117) 73 (15) (36) 83 (881) Elimina
Slide 33: 9m 2020 IFRS vs. APM Cash Flow Reconciliation
9m 2020 IFRS vs. APM Cash Flow Reconciliation 33 IN € BILLION Sep. 2020 IN € BILLION Sep. 2020 Cash provided by (used for) operating activities (10.9) Cash provided by (used for) operating activities (10.9) t/o Reimbursement from / contribution to plan assets (0.3) Cash provided by (used for) invest
Slide 34: Glossary on Alternative Performance Measures (APM)
Glossary on Alternative Performance Measures (APM) This 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 accordance wi