Slide 1: H1 2005 Results
H1 2005 Results Hans Peter Ring Chief Financial Officer • Place for 1 • Date Earnings of presentation, conference place call – 27th July 2005 Safe Harbor Statement Certain of the statements contained in this document are not historical facts but rather are statements of future expectations and other
Slide 2: Content / New Management & Structure
Content Group overview Operating performance by division Financials 2005 guidance 3 New Management & Structure • T. Enders and N. Forgeard elected CEOs on June 25, 2005 • CEOs supervise & coach divisions according to own operational experience and background • J-P. Gut and H.P. Ring become COOs, to
Slide 3: New Management Near-term Roadmap
New Management Near-term Roadmap • Leadership: Pragmatic, Operative, Performance driven • Maximise value from a very strong starting position • Challenges : - Maintain Technology and Innovation Focus - Meet the revived Boeing challenge - Expand Defence business - Secure Space long-term • Goals : - G
Slide 4: H1 2005 Key Financial Achievements
H1 2005 Key Financial achievements • EBIT* margin close to 10%; EBIT* surge driven by Airbus, DS and Space • Continuing improvement of the Net cash position to € 4.7 bn • Order-book further strengthens to €204 bn • Moody’s upgrade to A1 rating • 2005 guidance: – Improved confidence in guidance for E
Slide 5: Airbus
Content Group overview Operating performance by division Financials 2005 guidance 9 Airbus €m H1 2005 H1 2004 • Revenues up 12 % Deliveries 189 161 • EBIT* margin 12.8%, EBIT* up 47% Revenues 11,262 10,024 • Deliveries increase R&D self-financed** 782 936 • Route06 savings: € 160 m incl. €50m in % o
Slide 6: MTA and Aeronautics (incl. Eurocopter)
MTA • Revenues: • A400M milestone ( €90m) €m H1 2005 H1 2004 • EBIT*: Revenues 326 234 • less favourable mix of business R&D self-financed 11 13 in % of revenues 3.4% 5.6% • A400M: EBIT* (14) (10) • Further Milestones expected in H2 • FAL construction in line with plan Order book 20,565 19,904 * pre
Slide 7: Eurocopter stand-alone and Space
Eurocopter stand-alone €m H1 2005 H1 2004 • Revenues and EBIT* up : Revenues 1,266 1,092 • Tiger and NH90 higher contribution R&D self-financed • H1 2005 deliveries: 147 (vs. 124) 31 31 in % of revenues 2.4% 2.8% • Tiger: EBIT* 61 43 • Ramp up in progress; in % of revenues 4.8% 3.9% • 4 deliveries i
Slide 8: Defence and Security Systems
Defence and Security Systems €m • EBIT*: H1 2005 H1 2004 • Less restructuring charge Revenues 2,172 2,119 • Efficiency improvement • EBIT and revenues higher towards YE. R&D self-financed 82 89 in % of revenues 3.8% 4.2% • Revenues + 3% : EBIT* (19) (83) • Eurofighter ramp up • Change of Perimeter i
Slide 9: Profit & Loss Highlights; Development of Net Cash
Profit & Loss Highlights H1 2005 H1 2004*** FY 2004*** in % of in % of in % of €m Revenues €m Revenues €m Revenues Revenues 16,020 14,567 31,761 self-financed R&D** 950 5.9% 1,113 7.6% 2,126 6.7% EBITDA 2,240 14.0% 1,774 12.2% 3,841 12.1% EBIT* 1,540 9.6% 979 6.7% 2,432 7.7% EBIT* before R&D 2,490 1
Slide 10: Hedge Policy
Hedge Policy • Approx. half of EADS US$ revenues naturally hedged by US$ procurement • 2005 Net exposure expected around $12 bn (including ~11$bn bn for Airbus) EADS hedge portfolio, 30th June 2005 US$ bn ($ 44.0 bn), average rate €1 = 1.09 $ 15 12.6 10.9 10 8.0 5.7 5.0 5 1.3 0.4 0 2005 2006 2007 20
Slide 11: Increased confidence in upside
Increased confidence in upside EBIT* in € bn EPS in € Revenues in € bn EBIT* margin in % 7.9% 33 31.8 7.7% 30.1 >2.6 > 1.50 5.1% 2.4 € vs $ 1.5 1.27 1.13 0.80 1.24 ~1.30 2003 2004 Target 2003 2004 Target 2003 2004 Target 2005 2005 2005 Other 2005 targets • Airbus Deliveries: > 360 aircraft • Book-to
Slide 12: IFRS2 Implementation; Airbus Customer Financing
IFRS2 Implementation : Stock Options and Employee Shares Accounting • H1 2004 figures restated for comparability (€ 6 m impact) • FY 2004 Impact was € 12 m Before IFRS 2 After IFRS 2 implementation implementation in € millions H1 2005 H1 2004 H1 2005 H1 2004 EBIT* 1,561 985 1,540 979 Net income 837
Slide 13: Customer Financing Exposure; Q2 2005 Key Figures
Customer Financing Exposure all figures in € m June Dec. 2005 2004 closing rate € - $ 1.21 1.36 100% AIRBUS Total Gross exposure 3,537 3,348 of which off-balance sheet 602 604 Estimated value of collateral (1,993) (1,916) Net exposure 1,544 1,432 Provision and asset impairment (1,544) (1,432) AIRBUS
Slide 14: EBIT* Calculation
EBIT* Calculation in € m H1 2005 H1 2004*** FY 2004*** Profit before finance cost 1,476 873 2,215 and income taxes Exceptionals: Goodwill impairment** 0 0 0 Fair value adjustment 64 106 217 EBIT* 1,540 979 2,432 * pre goodwill and exceptionals ** IFRS3 applied from 2004: goodwill only reduced by imp
Slide 15: Net Income pre-exceptionals; Net Cash Position
Net Income pre-exceptionals in € m H1 2005 H1 2004** FY 2004** Net Income 816 381 1,018 EPS 1.03 € 0.48 € 1.27 € Goodwill impairment 0 0 0 Exceptionals: Depreciation of Fair value adjustment 64 106 217 Related Tax impact (22) (38) (78) Related Minorities portion (6) (11) (17) Net Income* 852 438 1,1
Slide 16: Balance Sheet Highlights: Assets and Liabilities
Balance Sheet Highlights: Assets in € m June 2005 Dec. 2004 Non-current Assets 35,760 36,743 of which Intangible & Goodwill 10,140 10,008 of which Property, plant & equipment 13,480 12,746 of which Investments & Financial assets 4,400 3,848 of which positive hedge mark-to-market 3,437 6,243 of which
Slide 17: A380 R&D and Capex; Quarterly Revenues Breakdown
A380: Maiden Flight, 27th April 2005 Self-financed R&D charged in P&L by year in EUR m 2500 2,096 2,189 2,126 2000 1,841 1500 1,082 Cumulative 983 950 1000 819 A380 R&D 500 384 402 = 3.7 €bn 0 FY2001 FY 2002 FY2003 FY 2004 H1 2005 A380 R&D EADS total R&D Capex by year in EUR m incl. Capitalised R&D
Slide 18: Quarterly EBIT* and Order-intake Breakdown
Quarterly EBIT* Breakdown (cumulative) Q1 H1 9m FY in €m 2005 2004 2005 2004** 2005 2004** 2005 2004** Airbus 628 224 1,444 980 . 1,379 . 1,919 MTA (6) (8) (14) (10) . 5 . 26 Aeronautics 11 10 19 55 . 115 . 204 of which Eurocopter 14 7 61 43 . 101 . 201 Space (6) (11) 7 (12) . (6) . 9 DS (35) (51) (
Slide 19: Quarterly Order-book Breakdown
Quarterly Order-book Breakdown March June Sept. Dec. in €m 2005 2004 2005 2004 2005 2004 2005 2004 Airbus 141,143 140,911 151,978 139,655 . 138,747 . 136,022 MTA 19,850 19,980 20,565 19,904 . 19,738 . 19,897 Aeronautics 10,986 10,021 11,087 9,991 . 10,656 . 10,171 of which Eurocopter 9,697 8,766 9,5