Airbus Se · EURONEXT:AIR
Airbus — Airbus Se Ord — Q2 2020 Earnings Presentation
33 slides from Airbus's earnings presentation, Jul 30, 2020
Slide 1: Airbus H1 2020 Results
30 July 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, Key Priorities
Company Business Key Highlights Highlights Priorities
Slide 4: H1 2020 Key Topics
H1 2020 Key Topics 4 Adaptation plan deployed throughout the business Latest view on commercial aircraft business consistent with April rate adjustments Industrial system adjusted to new production levels Cash containment and business resizing on track H1 financials reflect COVID-19 impact
Slide 5: H1 2020 Commercial Positioning
H1 2020 Commercial Positioning 5 Consolidated Airbus Order Book Consolidated Airbus by Division External Revenue by Division H1 2020 H1 2019 Change Airbus 65% Order Intake 298 88 239% Airbus (net) Helicopters 11% (in units) Order Book 7,584 7,276 4.2% € 18.9 bn Defence and Space 24% Order Intake 75
Slide 6: H1 2020 Financial Performance
H1 2020 Financial Performance 6 Revenues EBIT Adjusted in € bn in € bn / RoS (%) 8.2% 2.5 30.9 -5.0% 18.9 (0.9) H1 2019 H1 2020 H1 2019 H1 2020 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn H1 2019 H1 2020 2.25 (8.8) (4.0) (1.01) Penalty (3.6) Payment H1 2019 H1 2020 (12.4) (1)
Slide 7: H1 2020 Profitability
H1 2020 Profitability 7 EBIT Performance H1 2020 EBIT Reported of € - 1,559 m in € bn H1 2020 EBIT Adjustments resulting from: 2.5 € - 332 m A380 programme cost 2.1 € - 165 m PDP mismatch / BS revaluation (0.9) € - 117 m Others (1.6) H1 2020 Net Adjustments of € - 614 m EBIT Adjusted EBI
Slide 8: Currency Hedge Policy
Currency Hedge Policy 8 IN $ BILLION Forward Sales as of Jun. 2020 Forward Sales and Collars as of Dec. 2019 9.9 23.8 21.0 15.2 14.6 13.1 Average hedge rates 2020 2021 2022 2023 2024 remaining 6 months and beyond € vs $ 1.20 1.21 1.23 1.25 1.27 Forwards/Collars (2) ( 1.20 in Dec. 19 ) ( 1.23 in Dec.
Slide 9: H1 2020 Cash Evolution
H1 2020 Cash Evolution 9 IN € BILLION +0.3 -3.6 12.5 -8.3 -0.8 -0.6 -0.5 -0.2 Free Cash Flow before M&A: € - 12.4 bn t/o Customer Financing € 0.1 bn Free Cash Flow before M&A and Customer Financing € - 12.4 bn Net Cash Position Gross Cash Flow Penalties Change in Cash used for M&A (3) Pensions & Oth
Slide 10: Liquidity as of 30 June 2020
Liquidity as of 30 June 2020 10 SLL: € 9.5 bn Signed March 31st with 9 Banks Maturity: 12m+6m+6m (from Supplemental Liquidity Line (SLL) signing day) Term-out amount from bond issuances: € 5.5 bn RSCF: € 3.0 bn Credit Facility (RSCF) Maturity October 2021, undrawn Fully committed by 40 ban
Slide 11: Company Highlights, Business Highlights, Key Priorities
Company Business Key Highlights Highlights Priorities
Slide 12: Airbus
12 H1 2019 IN € MILLION H1 2020 Change Deliveries by Programme (Units) Restated(1) Order Intake (net) 298 88 239% Units Order Book 7,584 7,276 4.2% A220 5% A320 80% Deliveries Units 196 389 -49.6% A330 3% Revenues 12,533 24,043 -47.9% A350 12% R&D Expenses 1,146 1,153 A380 0% -0.6% in % of Revenues
Slide 13: Helicopters
Helicopters 13 IN € MILLION H1 2020 H1 2019 Change External Revenue Split Order Intake (net) 75 123 -39.0% Units Order Book 666 697 -4.4% Civil 46% Defence 54% Deliveries Units 104 143 -27.3% Revenues 2,333 2,371 -1.6% R&D Expenses 140 143 -2.1% in % of Revenues 6.0% 6.0% EBIT Adjusted 152 125 21.6%
Slide 14: Defence and Space
Defence and Space 14 IN € MILLION H1 2020 H1 2019 Change External Revenue Split Order Intake (net) 5,588 4,220 32.4% Platforms 64% Revenues 4,551 5,015 -9.3% Services 36% R&D Expenses 119 138 -13.8% in % of Revenues 2.6% 2.8% EBIT Adjusted 186 233 -20.2% in % of Revenues 4.1% 4.6% EBIT 73 (15) N/A i
Slide 15: Company Highlights, Business Highlights, Key Priorities
Company Business Key Highlights Highlights Priorities
Slide 16: Key Priorities
Key Priorities 16 Manage deliveries and backlog Focus on cash Continued focus on longer term cost structure across all businesses
Slide 17: Appendix
AIRBUS ice H1 Results 2020 AIRBUS
Slide 18: Expected Average Hedge Rates € vs. $
Expected Average Hedge Rates € vs. $ 18 Active exposure management 1.34 Average Hedge Rates 1.32 1.32 1.30 FY 2019 1.24 1.28 FY 2020E 1.19 1.26 1.24 1.22 1.23 1.21 1.21 1.20 1.21 1.19 1.18 1.19 (1) 1.16 1.17 1.14 Q1 Q2 Q3 Q4 2020E 2019 (1) Q2 actual
Slide 19: H1 2020 Detailed Income Statement and Adjustments
H1 2020 Detailed Income Statement and Adjustments 19 thereof Adjustments Impact on EBIT H1 2020 Financial H1 2020 IN € MILLION Operational FX Reported Result Adjusted Defence Airbus + Defence Airbus Helicopters and Space(1) and Space(2) EBIT (1,559) (945) (381) (68) (165) in % of Revenues -8.2% -5.0
Slide 20: H1 2019 Detailed Income Statement and Adjustments
H1 2019 Detailed Income Statement and Adjustments 20 thereof Adjustments Impact on EBIT H1 2019 Financial H1 2019 IN € MILLION Operational FX Reported Result Adjusted Defence Airbus + Defence Airbus Helicopters and Space(1) and Space(2) EBIT 2,093 2,529 (205) (228) (1) (2) in % of Revenues 6.8% 8.2%
Slide 21: Q2 2020 Key Figures
Q2 2020 Key Figures 21 IN € MILLION Q2 2020 Q2 2019 Revenues 8,317 18,317 EBIT Adjusted (1,226) 1,980 EBIT (1,638) 1,912 Net Income (Loss) (1,438) 1,157 FCF before M&A (4,374) 395 FCF before M&A and Customer Financing (4,410) 360 Q2 2019 Q2 2019 Q2 2019 IN € MILLION Q2 2020 Q2 2020 Q2 2020 Restated(
Slide 22: Detailed Free Cash Flow
Detailed Free Cash Flow 22 IN € MILLION H1 2020 H1 2019 Net Cash position at the beginning of the period 12,534 13,281 First time impact of IFRS 16 - (1,352) (1) Gross Cash Flow from Operations 329 2,781 (2) Change in working capital (11,898) (6,088) (3) Cash used for investing activities (1,307) (8
Slide 23: Net Cash Position
Net Cash Position 23 IN € MILLION June 2020 Dec. 2019 Gross Cash 17,484 22,682 Financing Liabilities (18,070) (10,148) Short-term Financing Liabilities (4,629) (1,959) Long-term Financing Liabilities (13,441) (8,189) Reported Net Cash (Debt) (586) 12,534 Airbus non-recourse debt 25 24 Net Cash (Debt
Slide 24: Customer Financing Exposure
Customer Financing Exposure 24 IN € MILLION June 2020 Dec. 2019 June 2020 Dec. 2019 Airbus Helicopters Closing rate € 1 = $ 1.12 $ 1.12 $ 1.12 $ 1.12 Total Gross Exposure 558 731 45 48 of which off-balance sheet 15 95 8 9 Estimated value of collateral (313) (530) (27) (30) Net Exposure 245 202 18 18
Slide 25: Airbus Customer Financing
Airbus Customer Financing 25 IN € BILLION Additions Sell Down Amortization Net change 0.6 1.0 0.9 0.8 0.3 0.8 0.8 0.7 0.5 0.6 0.6 0.2 0.4 Airbus Customer 0.1 0.0 Financing Gross (0.3) (0.5) (0.6) (0.2) Exposure (0.2) (0.2) (0.7) (0.7) (0.7) (0.7) (0.6) (0.2) (0.1) (0.7) (1.1) (0.1) (0.1) (0.2) (0.1)
Slide 26: Balance Sheet Highlights: Assets
Balance Sheet Highlights: Assets 26 IN € MILLION June 2020 Dec. 2019 Non-current Assets 51,859 57,686 of which Intangible & Goodwill 16,484 16,591 of which Property, plant & equipment 16,936 17,294 of which Investments & other long-term financial assets 5,039 6,079 of which Contract assets 65 91 of
Slide 27: Balance Sheet Highlights: Liabilities
Balance Sheet Highlights: Liabilities 27 IN € MILLION June 2020 Dec. 2019 Total Equity 1,331 5,990 of which AOCI (Accumulated Other Comprehensive Income) (2,719) (523) of which Non-controlling interests 9 15 Total Non-current liabilities 52,149 46,045 of which Pensions 8,882 7,932 of which Other pro
Slide 28: Shareholding Structure at 30 June 2020
Shareholding Structure at 30 June 2020 28 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 June 2020
Slide 29: Quarterly Revenues Breakdown (Cumulative)
Quarterly Revenues Breakdown (Cumulative) 29 IN € MILLION Q1 H1 9m FY 2019 2019 2019 2019 2020 2020 2020 2020 Restated(1) Restated(1) Restated(1) Restated(1) Airbus 7,569 9,697 12,533 24,043 35,572 54,775 Helicopters 1,202 1,007 2,333 2,371 3,712 6,007 Defence and Space 2,111 2,112 4,551 5,015 7,706
Slide 30: Quarterly EBIT Adjusted Breakdown (Cumulative)
Quarterly EBIT Adjusted Breakdown (Cumulative) 30 IN € MILLION Q1 H1 9m FY 2019 2019 2019 2019 2020 2020 2020 2020 Restated(1) Restated(1) Restated(1) Restated(1) Airbus 191 463 (1,307) 2,193 3,593 5,947 Helicopters 53 15 152 125 205 422 Defence and Space 15 101 186 233 355 565 Eliminations 22 (30)
Slide 31: Quarterly EBIT Breakdown (Cumulative)
Quarterly EBIT Breakdown (Cumulative) 31 IN € MILLION Q1 H1 9m FY 2019 2019 2019 2019 2020 2020 2020 2020 Restated(1) Restated(1) Restated(1) Restated(1) Airbus 57 319 (1,808) 2,006 3,165 1,794 Helicopters 53 9 152 124 203 414 Defence and Space (53) (117) 73 (15) 83 (881) Eliminations 22 (30) 24 (22
Slide 32: H1 2020 IFRS vs. APM Cash Flow Reconciliation
H1 2020 IFRS vs. APM Cash Flow Reconciliation 32 IN € BILLION H1 2020 IN € BILLION H1 2020 Cash provided by (used for) operating activities (11.7) Cash provided by (used for) operating activities (11.7) t/o Reimbursement from / contribution to plan assets (0.2) Cash provided by (used for) investing
Slide 33: 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