Slide 1: Airbus FY Results 2016
AIRBUS FY Results 2016 22 February 2017 Tom Enders Harald Wilhelm Chief Executive Officer 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: Implementation of ESMA Guidelines
IMPLEMENTATION OF ESMA GUIDELINES 3 For its FY 2016 financial reporting Airbus has implemented the ESMA’s Guidelines on Alternative Performance Measures. As a result, it has added additional explanations, definitions and reconciliations to its financial reporting and changed the basis of some of its
Slide 4: Group Highlights
FY Results Group Highlights Divisional Highlights Guidance Highlights 2016
Slide 5: FY 2016 Highlights
FY 2016 HIGHLIGHTS 5 Delivered all guidance KPIs Commercial a/c net BtB>1; record deliveries and backlog supports ramp-up Further steps towards efficiency initiated to prepare the future Future EPS / FCF growth confirmed A400M FY16 € 2.2 bn charge: programme remains an area of concern
Slide 6: FY 2016 Commercial Positioning
FY 2016 COMMERCIAL POSITIONING 6 Airbus Order Book* Airbus External by Region (by value) Revenue Split by Division 10% 18% 5% 33% 13% 9% € 1,060 bn € 67 bn t/o defence € 39.8 bn t/o defence € 11.1 bn 18% 73% 21% ● Asia Pacific ● Middle East ● Commercial Aircraft ● Europe ● Latin America ● Helicopter
Slide 7: FY 2016 Financial Performance
FY 2016 FINANCIAL PERFORMANCE 7 Revenues EBIT Adjusted 6.4% 6.6% 5.9% in € bn / RoS (%) in € bn 67 4.02 4.11 3.96 64 61 FY'14 FY'15 FY'16 FY'14 FY'15 FY'16 EPS(1) Adjusted FCF before M&A and Customer Financing in € bn 3.32 3.39 3.31 1.3 1.4 in € 1.0 FY'14 FY'15 FY'16 FY'14 FY'15 FY'16 ► Guidance KPI
Slide 8: FY 2016 Profitability
FY 2016 PROFITABILITY 8 EBIT Performance FY 2016 EBIT reported of € 2.3 bn 4.11 3.96 4.06 FY 2016 Adjustments resulting from: € - 2,210 m A400M LMC € - 930 in € bn m $ PDP mismatch / BS Revaluation 2.26 € - 182 m Restructuring/Transformation €- 33 m Portfolio (€ 19 m at Airbus and - € 52 m at Airbus
Slide 9: Currency Hedge Policy
CURRENCY HEDGE POLICY 9 IN $ BILLION Net Exposure ● Forward Sales as of Dec. 2016 ● Collars as of Dec. 2016 ● Forward Sales and Collars as of Dec. 2015 23.5 (1) 4.3 4.4 24.9 25.1 20.6 0.8 13.4 8.9 Average hedge 2021 2016 2017 2018 2019 2020 rates and beyond 1.32 (1) 1.29 1.25 1.24 1.23 1.22 € vs $ F
Slide 10: FY 2016 Cash Evolution
FY 2016 CASH EVOLUTION 10 IN € BILLION +0.6 +3.6 +2.0 -2.8 -1.7 -0.3 -0.3 Free Cash Flow before M&A and customer financing: +1.4 11.1 10.0 Net Cash Gross Cash Change in Cash used Customer M&A(3) Shareholder Pensions & Net Cash position Dec. Flow from Working for investing Financing Return (4) Others
Slide 11: Divisional Highlights
FY Results Group Highlights Divisional Highlights Guidance Highlights 2016
Slide 12: Commercial Aircraft
COMMERCIAL AIRCRAFT 12 IN € MILLION FY 2016 FY 2015 CHANGE Deliveries by programme (Units) 7% 4% Order Intake (net) 731 1,080 -32.3% 10% Units Order book 6,874 6,831 0.6% Order Intake (net) 114,938 139,062 -17.3% 79% Value Order Book 1,010,200 952,450 6.1% ● Single Aisle ● A350 ● A330 ● A380 Deliver
Slide 13: Helicopters
HELICOPTERS 13 ININ € MILLION € MILLION FY 2016 FY 2015 CHANGE External Revenue Split Order Intake (net) 353 333 6.0% Units 43% Order book 766 831 -7.8% 57% Order Intake (net) 6,057 6,168 -1.8% Value Order Book 11,269 11,769 -4.2% ● Defence ● Civil Deliveries (Units) 418 395 5.8% Revenues 6,652 6,78
Slide 14: Defence and Space
DEFENCE AND SPACE 14 IN € MILLION FY 2016 FY 2015 CHANGE External Revenue Split Order Intake (net) 15,393 14,440 6.6% 31% Order book 41,499 42,861 -3.2% 69% Revenues 11,854 13,080 -9.4% ● Platforms ● Services R&D Expenses 332 344 -3.5% in % Revenues 2.8% 2.6% EBIT Adjusted 1,002 1,051 -4.7% in % Rev
Slide 15: Guidance Highlights
FY Results Group Highlights Divisional Highlights Guidance Highlights 2016
Slide 16: 2017 Guidance and Dividend Proposal
2017 GUIDANCE AND DIVIDEND PROPOSAL 16 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 t
Slide 17: Key Priorities
KEY PRIORITIES 17 Deliver commercial aircraft ramp-up and transition De-risk A400M and strengthen programme execution Implement restructuring Investment in our future for improved efficiency ► Deliver EPS / FCF growth
Slide 18: FY Results 2016 Appendix
FY Results sonenon 2016 AIRBUS
Slide 19: Dividend per Share
DIVIDEND PER SHARE 19 IN € 1.35 (1) 1.3 1.2 105% Pay-out ratio proposal increased exceptionally to deliver sustained dividend growth despite 2016 charges impacting EPS 40% 40% 40% FY 2014 FY 2015 FY 2016 Pay-out Ratio Ex-dividend date: Tuesday 18 April 2017 Record date: Wednesday 19 April 2017 Payme
Slide 20: Expected Airbus Average Hedge Rates € vs. $
EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $ 20 Active exposure management 1.38 Average 1.37 Hedge Rates 1.36 1.36 FY 2015 1.34 1.35 1.35 FY 2016 1.32 1.34 1.34 1.34 FY 2017E 1.29 1.33 1.33 1.33 1.32 1.31 1.31 (1) 1.30 1.30 1.29 Q1 Q2 Q3 Q4 FY 2016 FY 2015 (1) Q4 actual
Slide 21: FY 2016 Forex EBIT Impact Bridge
FY 2016 FOREX EBIT IMPACT BRIDGE 21 IN € BILLION Bridge Hedge rates (from €/$ 1.34 to €/$ 1.32) 0.18 Other one-off forex effect including PDP reversal (0.30) Compared to FY 2015 (0.12)
Slide 22: Reconciliation of EBIT, EBIT Adjusted and EBIT* before one-offs
RECONCILIATION OF EBIT, EBIT ADJUSTED AND EBIT* BEFORE ONE-OFFS 22 IN € MILLION FY 2016 FY 2015 FY 2014 EBIT* before one-offs 3,999 4,132 4,066 Exceptionals (44) (24) (49) Retained EBIT Adjusted 3,955 4,108 4,017 Adjustments (1,697) (46) (26) EBIT 2,258 4,062 3,991 * Pre-goodwill impairment and exce
Slide 23: FY 2016 Detailed Income Statement and Adjustments
FY 2016 DETAILED INCOME STATEMENT AND ADJUSTMENTS 23 IN € MILLION thereof adjustments Impact on EBIT Financial FY 2016 FY 2016 Operational HQ FX(2) Result Adjusted Defence Dassault Com. Commercial Helicopters and Sale Aircraft Aircraft (1) Space /Gemini and DS EBIT 2,258 3,955 (366) (42) (1,067) 708
Slide 24: FY 2015 Detailed Income Statement and Adjustments
FY 2015 DETAILED INCOME STATEMENT AND ADJUSTMENTS 24 IN € MILLION thereof adjustments Impact on EBIT FY 2015 FY 2015 Operational HQ FX(2) Financial Result Adjusted Defence Com. Commercial Dassault and Aircraft Aircraft Sale Space(1) and DS EBIT 4,062 4,108 72 (231) 748 (635) in % of revenues 6.3% 6.
Slide 25: Q4 2016 Key Figures
Q4 2016 KEY FIGURES 25 IN € MILLION Q4 2016 Q4 2015 Order Intake 61,262 47,044 Revenues 23,876 21,485 EBIT Adjusted 1,547 1,328 EBIT (98) 1,140 Net Income (816) 796 FCF before M&A 5,885 2,926 FCF before M&A before Customer Financing 5,592 2,959 IN € MILLION Q4 2016 Q4 2015 Q4 2016 Q4 2015 Q4 2016 Q4
Slide 26: Airbus Strong Liquidity Position as at December 2016
AIRBUS STRONG LIQUIDITY POSITION AS AT 31 DECEMBER 2016 26 € 3 bn Credit Facility: Credit Facility (RSCF) • Maturity 2021, undrawn • Fully committed by 40 banks • No financial covenants, no MAC clause Financing Liabilities: Short-term: € 1.7 bn Long-term: € 8.8 bn € 10.5 bn • Includes € 3.5 bn EMTN,
Slide 27: Detailed Free Cash Flow
DETAILED FREE CASH FLOW 27 IN € MILLION FY 2016 FY 2015 Net Cash position at the beginning of the period 10,003 9,092 Gross Cash Flow from Operations (1) 3,565 4,614 Change in working capital (2) 346 (723) of which Customer Financing (252) (150) Cash used for investing activities (3) (730) (1,066) o
Slide 28: 2016 IFRS vs. APM Cash Flow Reconciliation
2016 IFRS VS. APM CASH FLOW RECONCILIATION 28 IN € BILLION FY 2016 IN € BILLION FY 2016 Cash provided by operating activities 4.4 Cash provided by operating activities 4.4 t/o Reimbursement from / contribution to plan assets (0.3) Cash provided by (used for) investing activities (0.8) t/o Treasury s
Slide 29: Net Cash Position
NET CASH POSITION 29 IN € MILLION Dec. 2016 Dec. 2015 Gross Cash (1) 21,591 19,128 Financing Debts (10,478) (9,125) Short-term Financing Debts (1,687) (2,790) Long-term Financing Debts (8,791) (6,335) Reported Net Cash 11,113 10,003 Airbus non-recourse debt 43 94 Net Cash excl. non-recourse 11,156 1
Slide 30: Customer Financing Exposure
CUSTOMER FINANCING EXPOSURE 30 IN € MILLION Dec. 16 Dec. 2015 Dec. 16 Dec. 2015 Commercial Aircraft Helicopters Closing rate € 1 = $ 1.05 $ 1.09 $ 1.05 $ 1.09 Total Gross Exposure 1,572 1,366 119 69 of which off-balance sheet 182 60 21 8 Estimated value of collateral (1,157) (922) (60) (20) Net Expo
Slide 31: Airbus Commercial Aircraft Customer Financing
AIRBUS COMMERCIAL AIRCRAFT CUSTOMER FINANCING 31 IN € BILLION Additions Sell Down Amortization Net change 1.5 1.5 1.0 0.9 1.0 0.9 0.9 0.8 0.8 Airbus Customer 0.6 0.5 0.6 0.5 0.6 0.6 0.4 0.3 Financing Gross Exposure (0.3) (0.6) (0.5) (0.7) (0.2) (0.2) (0.7) (0.7) (0.7) (0.7) (0.9) (0.7) (0.2) (1.0) (
Slide 32: Balance Sheet Highlights: Assets
BALANCE SHEET HIGHLIGHTS: ASSETS 32 IN € MILLION Dec. 2016 Dec. 2015 Non-current Assets 55,037 53,438 of which Intangible & Goodwill 12,068 12,555 of which Property, plant & equipment 16,913 17,127 of which Investments & Financial assets 5,263 3,818 of which positive hedge mark-to-market 893 931 of
Slide 33: Balance Sheet Highlights: Liabilities
BALANCE SHEET HIGHLIGHTS: LIABILITIES 33 IN € MILLION Dec. 2016 Dec. 2015 Total Equity 3,652 5,973 of which OCI (Other Comprehensive Income) (4,845) (4,316) of which Non-controlling interests (5) 7 Total Non-current liabilities 50,789 46,700 of which pensions 8,342 7,172 of which other provisions 2,
Slide 34: Shareholding Structure as at December 2016
SHAREHOLDING STRUCTURE AS AT 31 DECEMBER 2016 34 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 December 2016
Slide 35: Quarterly Order Intake Breakdown (Cumulative)
QUARTERLY ORDER INTAKE BREAKDOWN (CUMULATIVE) 35 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Commercial Aircraft 4,311 17,217 32,302 46,334 63,103 100,061 114,938 139,062 Helicopters 1,004 1,428 2,338 2,726 3,588 4,013 6,057 6,168 Defence and Space 2,515 2,390 5,189 5,371 8,189
Slide 36: Quarterly Order Book Breakdown (Cumulative)
QUARTERLY ORDER BOOK BREAKDOWN (CUMULATIVE) 36 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Commercial Aircraft 904,589 901,565 930,885 875,018 939,079 914,692 1,010,200 952,450 Helicopters 11,615 12,371 11,421 12,004 11,075 11,818 11,269 11,769 Defence and Space 42,596 41,854 37
Slide 37: Quarterly Revenues Breakdown (Cumulative)
QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) 37 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Commercial Aircraft 8,668 8,565 21,061 21,081 31,511 31,119 49,237 45,854 Helicopters 1,158 1,285 2,687 2,950 4,282 4,423 6,652 6,786 Defence and Space 2,534 2,603 5,440 5,531 7,714 8,383 11
Slide 38: Quarterly EBIT Breakdown (Cumulative)
QUARTERLY EBIT BREAKDOWN (CUMULATIVE) 38 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Commercial Aircraft 289 413 420 1,412 773 1,889 1,543 2,287 Helicopters 33 52 144 162 200 241 308 427 Defence and Space 88 130 475 (32) 579 140 (93) 736 HQ / Elim. (48) 637 812 668 804 652 500 6
Slide 39: Quarterly EBIT Adjusted Breakdown (Cumulative)
QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE) 39 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Commercial Aircraft 406 563 1,269 1,521 1,836 2,213 2,811 2,766 Helicopters 33 52 144 162 200 241 350 427 Defence and Space 107 87 322 261 436 422 1,002 1,051 HQ / Elim. (48) (60) (56)
Slide 40: 2016 Quarterly EBIT* before one-off to EBIT Adjusted Reconciliation
2016 QUARTERLY EBIT* BEFORE ONE-OFF TO EBIT ADJUSTED RECONCILIATION 40 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 41: 2015 Quarterly EBIT* before one-off to EBIT Adjusted Reconciliation
2015 QUARTERLY EBIT* BEFORE ONE-OFF TO EBIT ADJUSTED RECONCILIATION 41 IN € MILLION Q1 H1 EBIT* EBIT* Exceptionals EBIT Adjusted Exceptionals EBIT Adjusted before one-off before one-off Commercial Aircraft 569 (6) 563 1,533 (12) 1,521 Helicopters 52 0 52 162 0 162 Defence and Space 90 (3) 87 267 (6)
Slide 42: Glossary on Alternative Performance Measures (APM)
GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM) 42 The following Annual Result 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