Slide 1: Q1 Results 2017
AIRBUS Q1 Results 2017 27 April 2017 Harald Wilhelm 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: Q1 Results: Company Highlights
Q1 Results Company Highlights Divisional Highlights Guidance Highlights 2017
Slide 4: Q1 2017 Highlights
Q1 2017 HIGHLIGHTS 4 Strong commercial backlog of 6,744 a/c, supporting ramp-up plans Q1 financials reflect phasing and divestments 2017 Guidance confirmed
Slide 5: Q1 2017 Commercial Positioning
Q1 2017 COMMERCIAL POSITIONING 5 Airbus Order Book* Airbus External by Region (by value) Revenue Split by Division 10% 16% 5% 33% 13% 9% € 1,030 bn € 13 bn t/o defence € 37.7 bn t/o defence € 1.9 bn 18% 75% 21% ● Asia Pacific ● Middle East ● Commercial Aircraft ● Europe ● Latin America ● Helicopters
Slide 6: Q1 2017 Financial Performance
Q1 2017 FINANCIAL PERFORMANCE 6 Revenues EBIT Adjusted 4,1% in € bn / RoS (%) in € bn 13,0 1,8% 0,50 12,2 0,24 Q1 2016 Q1 2017 Q1 2016 Q1 2017 EPS(1) Adjusted FCF before M&A and Customer Financing (1,3) in € in € bn (2,7) 0,37 0,12 Q1 2016 Q1 2017 Q1 2016 Q1 2017 (1) Q1 2017 Average number of shares
Slide 7: Q1 2017 Profitability
Q1 2017 PROFITABILITY 7 EBIT Performance Q1 2017 EBIT reported of € 0.9 bn 0,85 Q1 2017 Adjustments resulting from: €+ 560 m Defence Electronics net capital gain in € bn 0,50 €+ 55 m $ PDP mismatch / BS Revaluation 0,36 €- 3 m Other AD Portfolio 0,24 €+ 612 m Net Adjustments Q1 2016 Q1 2017 EBIT Adj
Slide 8: Q1 2017 Cash Evolution
Q1 2017 CASH EVOLUTION 8 IN € BILLION 0.1 0.5 -1.0 11,1 -0.3 -0.2 -0.3 Free Cash Flow before M&A and customer financing: -1.3 9,8 Net Cash Gross Cash Flow Change in Cash used for Customer M&A (4) Pensions & Net Cash position Dec. from Operations Working Capital investing Financing Others position Ma
Slide 9: Q1 Results: Divisional Highlights
Q1 Results Company Highlights Divisional Highlights Guidance Highlights 2017
Slide 10: Commercial Aircraft
COMMERCIAL AIRCRAFT 10 IN € MILLION Q1 2017 Q1 2016 Change Deliveries by programme (Units) 2% Order Intake (net) 6 10 -40.0% 10% Units 9% Order Book 6,744 6,716 0.4% Order Intake (net) 1,153 4,311 -73.3% 79% Value Order Book 981,958 904,589 8.6% ● A320 ● A350 Deliveries (Units) 136 125 8.8% ● A330 ●
Slide 11: Helicopters
HELICOPTERS 11 IN € MILLION Q1 2017 Q1 2016 CHANGE External Revenue Split Order Intake (net) 60 51 17.6% Units Order Book 748 826 -9.4% 48% 52% Order Intake (net) 1,417 1,004 41.1% Value Order Book 11,392 11,615 -1.9% ● Defence ● Civil Deliveries (Units) 78 56 39.3% Revenues 1,291 1,158 11.5% R&D Ex
Slide 12: Defence and Space
DEFENCE AND SPACE 12 IN € MILLION Q1 2017 Q1 2016 CHANGE External Revenue Split Order Intake (net) 1,521 2,515 -39.5% 31% Order Book 39,421 42,596 -7.5% 69% Revenues 2,114 2,534 -16.6% R&D Expenses 60 66 -9.1% ● Platforms ● Services in % Revenues 2.8% 2.6% EBIT Adjusted 63 107 -41.1% in % Revenues 3
Slide 13: Q1 Results: Guidance Highlights
Q1 Results Company Highlights Divisional Highlights Guidance Highlights 2017
Slide 14: 2017 Guidance
2017 GUIDANCE 14 As the basis for its 2017 guidance, Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions Airbus 2017 earnings and FCF guidance is based on a constant perimeter Airbus expects to deliver more than 70
Slide 15: Key Priorities
KEY PRIORITIES 15 Deliver commercial aircraft ramp-up and transition De-risk A400M and strengthen programme execution Implement new organisation Invest in our future for improved efficiency ► Deliver EPS / FCF growth
Slide 16: Appendix
Q1 Results APPENDIX 2017
Slide 17: Currency Hedge Policy
CURRENCY HEDGE POLICY 17 IN $ BILLION Net Exposure ● Forward Sales as of Mar. 2017 ● Collars as of Mar. 2017 ● Forward Sales and Collars as of Dec. 2016 4,3 6,3 4,6 25,1 18,7 1,3 20,7 14,6 10,6 Average hedge rates 2017 2018 2019 2020 2021 remaining 9 months and beyond € vs $ 1.27 1.25 1.24 1.22 1.21
Slide 18: Expected Airbus Average Hedge Rates € vs. $
EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $ 18 Active exposure management 1.38 1.37 Average 1.36 Hedge Rates 1.35 FY 2016 1.32 1.34 1.34 1.33 1.33 FY 2017E 1.29 (1) 1.32 1.33 1.31 1.31 1.30 1.30 1.29 1.28 1.29 1.27 1.26 1.27 1.25 1.24 1.25 1.23 Q1 Q2 Q3 Q4 FY 2017 E FY 2016 (1) Q1 actual
Slide 19: Q1 2017 Forex EBIT Impact Bridge
Q1 2017 FOREX EBIT IMPACT BRIDGE 19 IN € BILLION Bridge Hedge rates (from €/$ 1.34 to €/$ 1.33) 0.00 Other one-off forex effect including PDP reversal 0.19 Compared to Q1 2016 0.19
Slide 20: Q1 2017 Detailed Income Statement and Adjustments
Q1 2017 DETAILED INCOME STATEMENT AND ADJUSTMENTS 20 IN € MILLION thereof Adjustments Impact on EBIT Financial Q1 2017 Q1 2017 Operational FX Result Adjusted Defence and Space Commercial Aircraft EBIT 852 240 557 55 in % of revenues 6.6% 1.8% Interest income 39 39 Interest expenses (127) (127) Other
Slide 21: Q1 2016 Detailed Income Statement and Adjustments
Q1 2016 DETAILED INCOME STATEMENT AND ADJUSTMENTS 21 IN € MILLION thereof Adjustments Impact on EBIT Financial Q1 2016 Q1 2016 Operational FX Result Adjusted Commercial Defence and Commercial Aircraft Space Aircraft EBIT 362 498 19 (19) (136) in % of revenues 3.0% 4.1% Interest income 75 75 Interest
Slide 22: Q1 2017 Key Figures
Q1 2017 KEY FIGURES 22 IN € MILLION Q1 2017 Q1 2016 Order Intake 3,823 7,245 Revenues 12,988 12,183 EBIT Adjusted 240 498 EBIT 852 362 Net Income 608 399 FCF before M&A (1,599) (2,986) FCF before M&A and Customer Financing (1,269) (2,731) IN € MILLION Q1 2017 Q1 2016 Q1 2017 Q1 2016 Q1 2017 Q1 2016
Slide 23: Airbus Strong Liquidity Position as at March 2017
AIRBUS STRONG LIQUIDITY POSITION AS AT 31 MARCH 2017 23 € 3.0 bn Credit Facility: Credit Facility (RSCF) Maturity 2021, undrawn Fully committed by 40 banks No financial covenants, no MAC clause € 10.6 bn Financing Liabilities: Financing Liabilities of which long-term : € 8.7 bn Includes € 3.
Slide 24: Detailed Free Cash Flow
DETAILED FREE CASH FLOW 24 IN € MILLION Q1 2017 Q1 2016 Net Cash position at the beginning of the period 11,113 10,003 Gross Cash Flow from Operations (1) 74 396 Change in working capital (2) (1,337) (2,814) Cash used for investing activities (3) 147 (713) of which Industrial Capex (additions) (4) (
Slide 25: Net Cash Position
NET CASH POSITION 25 IN € MILLION Mar. 2017 Dec. 2016 Gross Cash 20,324 21,591 Financing Debts (10,574) (10,478) Short-term Financing Debts (1,839) (1,687) Long-term Financing Debts (8,735) (8,791) Reported Net Cash 9,750 11,113 Airbus non-recourse debt 46 43 Net Cash excl. non-recourse 9,796 11,156
Slide 26: Customer Financing Exposure
CUSTOMER FINANCING EXPOSURE 26 IN € MILLION Mar. 2017 Dec. 2016 Mar. 2017 Dec. 2016 Commercial Aircraft Helicopters Closing rate € 1 = $ 1.07 $ 1.05 $ 1.07 $ 1.05 Total Gross Exposure 1,673 1,572 160 119 of which off-balance sheet 175 182 18 21 Estimated value of collateral (1,299) (1,157) (101) (60
Slide 27: Airbus Commercial Aircraft Customer Financing
AIRBUS COMMERCIAL AIRCRAFT CUSTOMER FINANCING 27 IN € BILLION Additions Sell Down Amortization Net change 1,5 1,5 1,0 1,0 0.9 0,9 0,8 0,9 0,8 Commercial Aircraft 0,6 0,5 0,6 0,5 0,6 0,6 0,5 0,4 0,3 Customer Financing Gross Exposure (0,3) (0,6) (0,5) (0,4) (0,7) (0,2) (0,2) (0,7) (0,7) (0,7) (0,7) (0
Slide 28: Balance Sheet Highlights: Assets
BALANCE SHEET HIGHLIGHTS: ASSETS 28 IN € MILLION Mar. 2017 Dec. 2016 Non-current Assets 54,628 55,037 of which Intangible & Goodwill 12,047 12,068 of which Property, plant & equipment 16,785 16,913 of which Investments & Financial assets 5,556 5,263 of which positive hedge mark-to-market 853 893 of
Slide 29: Balance Sheet Highlights: Liabilities
BALANCE SHEET HIGHLIGHTS: LIABILITIES 29 IN € MILLION Mar. 2017 Dec. 2016 Total Equity 5,605 3,652 of which OCI (Other Comprehensive Income) (3,542) (4,845) of which Non-controlling interests (18) (5) Non-current liabilities 49,781 50,789 of which pensions 8,277 8,342 of which other provisions 2,374
Slide 30: Shareholding Structure as at March 2017
SHAREHOLDING STRUCTURE AS AT 31 MARCH 2017 30 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% 772,912,869 shares issued as at 31 March 2017
Slide 31: Quarterly Order Intake Breakdown (Cumulative)
QUARTERLY ORDER INTAKE BREAKDOWN (CUMULATIVE) 31 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 1,153 4,311 32,302 63,103 114,938 Helicopters 1,417 1,004 2,338 3,588 6,057 Defence and Space (1) 1,521 2,515 5,189 8,189 15,393 HQ / Elim. (268) (585) (694) (1,662)
Slide 32: Quarterly Order Book Breakdown (Cumulative)
QUARTERLY ORDER BOOK BREAKDOWN (CUMULATIVE) 32 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 981,958 904,589 930,885 939,079 1,010,200 Helicopters 11,392 11,615 11,421 11,075 11,269 Defence and Space (1) 39,421 42,596 37,665 38,355 41,499 HQ / Elim. (2,613) (1,
Slide 33: Quarterly Revenues Breakdown (Cumulative)
QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) 33 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 9,825 8,668 21,061 31,511 49,237 Helicopters 1,291 1,158 2,687 4,282 6,652 Defence and Space (1) 2,114 2,534 5,440 7,714 11,854 HQ / Elim. (242) (177) (433) (802) (1,162)
Slide 34: Quarterly EBIT Breakdown (Cumulative)
QUARTERLY EBIT BREAKDOWN (CUMULATIVE) 34 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 336 289 420 773 1,543 Helicopters (2) 33 144 200 308 Defence and Space (1) 620 88 475 579 (93) HQ / Elim. (102) (48) 812 804 500 Airbus 852 362 1,851 2,356 2,258 (1) Defence
Slide 35: Quarterly EBIT Adjusted Breakdown (Cumulative)
QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE) 35 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 281 406 1,269 1,836 2,811 Helicopters (2) 33 144 200 350 Defence and Space (1) 63 107 322 436 1,002 HQ / Elim. (102) (48) (56) (64) (208) Airbus 240 498 1,679 2,408
Slide 36: Q1 2017 IFRS vs. APM Cash Flow Reconciliation
Q1 2017 IFRS VS. APM CASH FLOW RECONCILIATION 36 IN € BILLION Q1 17 IN € BILLION Q1 17 Cash provided by operating activities (1.4) Cash provided by operating activities (1.4) t/o Reimbursement from / contribution to plan assets (0.1) Cash provided by (used for) investing activities 0.3 t/o Treasury
Slide 37: 2016 Quarterly EBIT Before One-off to EBIT Adjusted Reconciliation
2016 QUARTERLY EBIT* BEFORE ONE-OFF TO EBIT ADJUSTED RECONCILIATION 37 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 38: Glossary on Alternative Performance Measures (APM)
GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM) 38 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