Slide 1: 9m 2004 Earnings: Raising FY2004 targets
9m 2004 Earnings: Raising FY2004 targets Hans Peter Ring, CFO 1 Earnings conference call – 4th November 2004 Safe Harbor Statement Certain of the statements contained in this document are not historical facts but rather are statements of future expectations and other forward-looking statements that
Slide 2: Extremely solid 9-month performance
Content 1. Group overview 2. Operating performance by division 3. Financials 4. Roadmap 3 Extremely solid 9-month performance • EBIT* margin increased to 7% (from 4% ) • Net Profit boosted to 0.6 bn€ (from 0.2 bn€)** • Net cash position remains solid at 2.8bn € Adjusting FY04 targets for aircraft de
Slide 3: 9m 2004 Highlights: EBIT nearly doubles
9m 2004 Highlights: EBIT* nearly doubles in m€ 9m 2004 9m 2003 Change Revenues 21,459 € m 18,536 € m + 16% of which Defence 4,228 € m 3,564 € m + 19% EBIT* 1,500 € m 784 € m + 91% FCF before Cust. Financing ** 147 € m (92 € m) Net income 597 € m 242 € m *** + 147% New orders 20,603 € m 49,453 € m (5
Slide 4: Defence business expansion
Defence business expansion 2004 Recent Achievements (booked): Defence and Homeland Security* Order Backlog Evolution NH90 to Oman US Border Control EC120 : $75m in bn € Paradigm with first SatCom export Expected 2004 contract to Portugal ~ 49 bn € ** 46 bn€ Key orders in the 2004 pipeline Eu
Slide 5: Airbus
Airbus €m 9m 2004 9m 2003 • EBIT-margin reflects increased Deliveries deliveries and favourable mix 224 199 Revenues 14,415 12,051 • A380 reaching for roll-out R&D self-financed 1,337 1,308 in % of revenues 9.3% 10.9% • 139 firm commitments and EBIT* orders for A380 1,382 701 in % of revenues 9.6% 5
Slide 6: MTA and Aeronautics
MTA €m 9m 2004 9m 2003 • Break-even achieved; Revenues profitability affected by FSTA 539 410 pre-contract expenses R&D self-financed 18 15 in % of revenues 3.3% 3.7% • A400M: EBIT* 5 (7) ¾ Further milestone in % of revenues 0.9% passed in July (€180m) Order book 19,738 20,429 ¾ Additional milestone
Slide 7: Space and Defence and Security Systems
Space • EBIT: On track for FY2004 €m 9m 2004 9m 2003 breakeven (EBIT* contribution Revenues of €6m in Q3) 1,646 1,473 R&D self-financed 37 39 • Restructuring execution in % of revenues 2.2% 2.6% underway EBIT* (5) (184) Order book 10,921 4,243 • Paradigm service proves to * pre goodwill and exceptio
Slide 8: Profit & Loss Highlights
Content 1. Group overview 2. Operating performance by division 3. Financials 4. Roadmap 15 Profit & Loss Highlights 9m 2004 9m 2003 in % of in % of €m Revenues €m Revenues Revenues 21,459 18,536 self-financed R&D 1,612 7.5% 1,561 8.4% EBITDA 2,613 12.2% 1,877 10.1% EBIT* 1,500 7.0% 784 4.2% EBIT* be
Slide 9: Development of Net Cash; Hedge Policy is Continued
Development of Net Cash in € m 9m 2004 9m 2003 Net cash at the beginning of the period 3,105 2,370 Gross Cash Flow from Operations* 1,729 1,099 Change in working capital 249 183 Cash used for investing activities** (1,832) (2,003) of which Industrial Capex (additions)*** (1,652) (1,328) of which Cus
Slide 10: 2nd upgrade of 2004 targets displays strong profitability growth
Content 1. Group overview 2. Operating performance by division 3. Financials 4. Roadmap 19 2nd upgrade of 2004 targets displays strong profitability growth EBIT* in € bn Revenues in € bn EBIT* in % of revenues ~6.9% 5.5% ~32 4.8% 5.1% ~2.2 30.8 30.1 29.9 1.7 ~1.25 1.4 1.5 1.13 € vs $ 0.90 0.95 2001
Slide 11: Maturing with New Momentum
Maturing with New Momentum Post Merger Phase Strengthen Global Leadership 2000 Group Integration 2004 Growth : • Merger Integration • Airbus: market recovery and A380 • DS and Space restructuring • Defence expands • Space turnaround European consolidation • Airbus Delivery and Export of new • MBDA P
Slide 12: Q3 2004 Key Figures; Balance Sheet Highlights
Q3 2004 Key Figures in € bn Q3 2004 Q3 2003 Revenues 6.9 € bn 5.5 € bn EBIT* 0.5 € bn 0.2 € bn FCF before cust. financing** (0.1 € bn) (0.4 € bn) New orders 7.1 € bn 6.3 € bn * pre goodwill and exceptionals ** excl. investments in medium term securities and consolidation changes Revenues EBIT* Q3 20
Slide 13: EBIT* calculation; Restructuring and write-off items
EBIT* calculation in € m 9m 2004 9m 2003 Income from operating activities 1,298 54 Income from investments 57 137 Exceptionals: Goodwill amortisation** 0 422 Fair value adjustment 145 171 EBIT* 1,500 784 * pre goodwill and exceptionals ** IFRS3 applied from 2004: goodwill only reduced by impairment
Slide 14: Net Cash Position; Net Income compliant with IFRS3
Net Cash Position in m€ Sept. 2004 Dec. 2003 Gross cash 7,931 7,872 Financial Debts (5,118) (4,767) Reported Net cash 2,813 3,105 non-recourse debt 808 679 Net cash excl. non-recourse 3,621 3,784 Main minority impact* (40) 40 Airbus 20% non-recourse debt (162) (136) Net cash position net of 3,419 3,
Slide 15: A380 reached for roll out; Customer Financing Exposure
A380 reached for roll out Self-financed R&D expensed by year in € m 2500 2096 2189 2000 1841 1612 1500 Cumulative 1082 1000 819 811 A380 R&D = 3.1 €bn 500 384 0 FY2001 FY 2002 FY2003 9m 2004 A380 R&D EADS total R&D Self-financed Capex expensed by year in € m 2952 3000 2196 2314 Cumulative 1947 2000
Slide 16: Quarterly revenues and EBIT breakdown
Quarterly revenues breakdown (cumulative) Q1 Q2 Q3 Q4 in €m 2004 2003 2004 2003 2004 2003 2004 2003 Airbus 4,126 3,775 10,024 8,773 14,415 12,051 19,048 MTA 101 96 234 268 539 410 934 Aeronautics 645 686 1,631 1,613 2,516 2,452 3,803 Space 457 403 1,090 1,008 1,646 1,473 2,424 DS 932 813 2,119 1,902
Slide 17: Quarterly Order-intake and Order-book breakdown
Quarterly Order-intake breakdown (cumulative ) Q1 Q2 Q3 Q4 in €m 2004 2003 2004 2003 2004 2003 2004 2003 Airbus 1,068 3,416 6,158 33,174 10,547 37,028 39,904 MTA 100 122 165 20,104 342 20,195 20,326 Aeronautics 843 706 1,669 1,440 3,168 2,213 3,661 Space 238 341 3,905 779 4,289 1,246 6,062 DS 1,359