Airbus Se · EURONEXT:AIR
Airbus — Non-Deal Roadshow (November 2018)
27 slides from Airbus's roadshow presentation, November 2018
Slide 1: Airbus 9M 2018 Roadshow Presentation
AIRBUS 9m 2018 Roadshow Presentation November 2018
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: 9M 2018 Highlights
9M 2018 HIGHLIGHTS 3 Focus on deliveries and securing ramp-up 9m financials reflect A350 performance and aircraft delivery profile 2018 Guidance updated to reflect latest delivery outlook Progress in management succession
Slide 4: Airbus at a Glance – As of FY 2017
AIRBUS AT A GLANCE – AS OF FY 2017 AS REPORTED 4 Deliveries by Programme (units) Airbus 2% 11% Passenger Aircraft, 9% Airbus External Revenue Freighter Conversion, by Division Services 78% A320 A330 16% A350 A380 Helicopters External Revenue Split 9% € 67 bn Civil/Parapublic and t/o defence
Slide 5: 9m 2018 Roadshow Presentation
9m 2018 Roadshow Market Product 9m 2018 Presentation Demand Portfolio Review
Slide 6: Air Traffic and Long Term Fundamentals Remain Strong
AIR TRAFFIC AND LONG TERM FUNDAMENTALS REMAIN STRONG 6 3.0% 81.4% Record GDP growth Load factor 7.6% +300 8th RPK growth million passengers year of impressive airline profitability Source: ICAO, IATA, WTO, IHS Economics, Airbus GMF 2018
Slide 7: World Fleet Will More Than Double Over the Next 20 Years
WORLD FLEET WILL MORE THAN DOUBLE OVER THE NEXT 20 YEARS 7 XL (4%) L (5%) M (15%) ~70% Growth S (76%) ~30% ~21k Replace ~50% ~37k Fleet in Total New service Stay Deliveries 2018 2037 Notes: Passenger aircraft (≥ 100 seats) | Jet freight aircraft (>10 tons), Rounded figures to the nearest 10 – Assumi
Slide 8: Long-Term Growth Fuelled by Middle-Class Expansion in Emerging Economies
LONG-TERM GROWTH FUELLED BY MIDDLE-CLASS EXPANSION IN 8 EMERGING ECONOMIES 2017 Trips per capita - Bubble size proportional to population Advanced 10 Developing Emerging 1 0 10 20 30 40 50 60 70 80 2017 real GDP per capita* 0.1 0.01 Source: Sabre, IHS Economics, Airbus GMF 2018 Equivalent amount of
Slide 9: 9m 2018 Roadshow Presentation
9m 2018 Roadshow Market Product 9m 2018 Presentation Demand Portfolio Review
Slide 10: Investments to Prepare the Future and Capture Growth
INVESTMENTS TO PREPARE THE FUTURE AND CAPTURE GROWTH 10 2012 - 2017 € 19 bn € 17 bn € 5 bn R&D CapEx Working Capital (1) ~ € 40 bn Comprehensive product family and ramp-up capability (1) Mainly investment in inventory partly offset by PDPs
Slide 11: The Most Comprehensive Commercial Aircraft Family…
THE MOST COMPREHENSIVE COMMERCIAL AIRCRAFT FAMILY… 11 Capacity XL L M S Range Product position is illustrative
Slide 12: …Well Positioned Across All Market Segments
…WELL POSITIONED ACROSS ALL MARKET SEGMENTS 12 XL M L S Airbus Backlog 54% 88% 52% % 35% share Source: Flight Global – Ascend, Airbus | Passenger a/c backlog as of end 2017 | Includes all manufacturers
Slide 13: Strong and Well Diversified Backlog, Aligned with Demand
STRONG AND WELL DIVERSIFIED BACKLOG, ALIGNED WITH DEMAND 13 Backlog* – 7,383 aircraft Europe Record Airline Profitability & CIS $ bn 60 100% Europe & CIS North 30 America Asia Pacific 50% Middle-East 0 Africa Latin America -30 0% Lessors Net Profit Non fuel cost / Revenue Source: IATA % Backlog as o
Slide 14: Robust Commercial Aircraft Environment
ROBUST COMMERCIAL AIRCRAFT ENVIRONMENT 14 Backlog O&D 8,000 1,600 7,000 1,400 6,000 1,200 5,000 1,000 4,000 800 3,000 688 718 600 626 629 635 588 2,000 498 510 534 400 453 483 434 378 1,000 320 200 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Book-to-bill 1.1 2.8 1.8 3.0
Slide 15: Helicopters: Market and Product Positioning
HELICOPTERS: MARKET AND PRODUCT POSITIONING 15 CIVIL & PARAPUBLIC MILITARY AIRCRAFT Demand impacted by softness in O&G Military market supported by growing Defence MARKET budgets LT market potential: ~ 22k new h/c in next 20 years Successful campaigns in 2017 UAM new market Product renewal strategy:
Slide 16: Defence and Space: Market and Product Positioning
DEFENCE AND SPACE: MARKET AND PRODUCT POSITIONING 16 MILITARY AIRCRAFT SPACE SYSTEMS CIS / UAS / OTHERS MARKET Geopolitical instability Growth in space spending Big data / analytics / digital Growth in defence spending More connected world Cyber protection Increasing need for security Increasing nee
Slide 17: Leveraging Digital in All Areas of Our Business
LEVERAGING DIGITAL IN ALL AREAS OF OUR BUSINESS 17 Skywise Data exploitation Connectivity Driving further industrial efficiency Improving reliability of assets in use for customer benefit Generating new business opportunities
Slide 18: 9m 2018 Roadshow Presentation
9m 2018 Roadshow Market Product 9m 2018 Presentation Demand Portfolio Review
Slide 19: Key Programme Update
KEY PROGRAMME UPDATE 19 • Consolidated in Commercial Aircraft since July 1st A220 • PPA exercise nearly completed • Short-term goals defined: increase sales, reduce recurring costs • Focus on 2018 deliveries and ongoing ramp-up, challenges remain A320 • A321LR: EASA / FAA certification received in O
Slide 20: 9M 2018 Financial Performance
9M 2018 FINANCIAL PERFORMANCE 20 Revenues EBIT Adjusted in € bn in € bn / RoS (%) 6.8% 40.4 3.2% 2.7 38.0 1.2 9m 2017 9m 2018 9m 2017 9m 2018 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn 2.31 0.84 9m 2017 9m 2018 (3.3) (4.2) 9m 2017 9m 2018 (1) 9m 2018 Average number of shares:
Slide 21: 9M 2018 Profitability
9M 2018 PROFITABILITY 21 EBIT Performance in € bn 9m 2018 EBIT Reported of € 2.7 bn 9m 2018 Adjustments resulting from: € - 105m A400M provision 2.7 2.7 € - 23m First H160s 1.7 1.2 € - 109m Compliance / Others EBIT Adjusted EBIT Reported € + 26m PDP mismatch / BS revaluation 9m 2017 9m 2018 € + 156m
Slide 22: Currency Hedge Policy
CURRENCY HEDGE POLICY 22 IN $ BILLION Forward Sales as of September 2018 2.7 Collars as of September 2018 4.6 Forward Sales and Collars as of Dec. 2017 17.7 1.7 23.1 21.1 15.3 8.8 6.8 2018 2022 Average hedge rates remaining 3 months 2019 2020 2021 and beyond 1.20 1.24 1.23 1.24 1.27 € vs $ For
Slide 23: 9M 2018 Cash Evolution
9M 2018 CASH EVOLUTION 23 IN € BILLION 2.5 0.4 -5.7 -1.2 -1.2 Free Cash Flow incl. A220 before M&A : € - 4.3 bn 13.4 t/o Customer Financing: € - 0.2 bn -1.1 Free Cash Flow before M&A and Customer Financing € - 4.2 bn 7.2 NetCash Net Cash Gross Cash Flow Change in (3) Cash used for M&A(2) Shareholder
Slide 24: 2018 Guidance
2018 GUIDANCE 24 As the basis for its 2018 guidance, Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions Airbus 2018 Earnings and guidance are prepared under IFRS 15 Airbus 2018 Earnings and FCF guidance is before
Slide 25: Key Priorities
KEY PRIORITIES 25 Focus on 2018 deliveries Preparing the future: − Ramp up − Innovation − Management transition EPS / FCF growth
Slide 26: Commitment to Cash Generation & Shareholder Returns
COMMITMENT TO CASH GENERATION & SHAREHOLDER RETURNS 26 2012 - 2017 € 40 bn € 12 bn € 9 bn FCF Shareholder Investment Return(2) generation(1) Dividend per Share 1.50 1.30 1.35 1.20 0.75 0.60 105% 39% 40% 40% 38% 40% (3) 2012 2013 2014 2015 2016 2017 Financial flexibility protected: Net Cash of € 14 b
Slide 27: Deliver EPS & FCF Growth Potential
DELIVER EPS & FCF GROWTH POTENTIAL 27 2017 - 2020 EPS FCF Future Growth Growth Growth Potential Boost A350 Performance EPS Growth Benchmark margin A350 A320 Turning Profitable Rate potential A400M* 2020+ A320 Boost Volume and Price Competitiveness Working Capital FX Investment in Control Hedging Imp