Slide 1: 30 October 2019 – 9M 2019 results
30 October 2019 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
Company Business Guidance Highlights Highlights Highlights
Slide 4: 9M 2019 Highlights
4 9M 2019 HIGHLIGHTS Solid commercial aircraft environment 9m financials mainly reflect A320neo ramp-up and progress on A350 Focus on ACF ramp-up and a more efficient delivery flow in 2019 and beyond 2019 Guidance updated to reflect latest delivery and FCF outlook; EBIT Adjusted guidance maintained
Slide 5: 9M 2019 Commercial Positioning
5 9M 2019 COMMERCIAL POSITIONING Consolidated Airbus Order Book Consolidated Airbus by Division External Revenue by Division 9m 2019 Order Intake (net) 127 Airbus (in units) Order Book 7,133 Order Intake (net) 173 € 46.2 bn Helicopters (in units) t/o defence Order Book 681 € 6.2 bn Defence and Space
Slide 6: 9M 2019 Financial Performance
6 9M 2019 FINANCIAL PERFORMANCE Revenues EBIT Adjusted in € bn in € bn / RoS (%) 9.0% 6.8% 46.2 40.4 4.1 2.7 9m 2018 9m 2019 9m 2018 9m 2019 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn (4.2) (4.9) 3.75 2.31 9m 2018 9m 2019 9m 2018 9m 2019 (1) 9m 2019 weighted average number of
Slide 7: 9M 2019 Profitability
7 9M 2019 PROFITABILITY EBIT Performance in € bn 9m 2019 EBIT Reported of € 3.4 bn 9m 2019 EBIT Adjustments resulting from: € – 253 m PDP mismatch / BS revaluation 4.13 € – 221 m Defence export ban 3.43 2.74 2.68 € – 158 m A380 programme cost EBIT Adjusted EBIT Reported € – 70 m Others 9m 2018 9m 20
Slide 8: Currency Hedge Policy
8 CURRENCY HEDGE POLICY Forward Sales as of Sep. 2019 Collars as of Sep. 2019 IN $ BILLION 2.5 Forward Sales and Collars as of Dec. 2018 1.7 17.4 27.1 22.2 20.7 19.4 7.4 2019 2020 2021 2022 2023 Average hedge rates remaining 3 months FY FY FY and beyond € vs $ 1.20 (1) 1.21 1.23 1.23 1.24 Forwards/C
Slide 9: 9M 2019 Cash Evolution
9 9M 2019 CASH EVOLUTION IN € BILLION +4.5 -1.4 -8.2 13.3 -1.2 -0.2 +0.1 Free Cash Flow before M&A: € - 4.9 bn -1.3 t/o Customer Financing: € 0.0 bn Free Cash Flow before M&A and 5.6 Customer Financing € - 4.9 bn Net Cash IFRS 16 Gross Cash Change in Cash used for M&A(2) Shareholder Pensions & Net C
Slide 10: Business Highlights
Company Business Guidance Highlights Highlights Highlights
Slide 11: Airbus: Revenues and EBIT Adjusted reflect backloaded delivery profile
11 IN € MILLION 9m 2019 9m 2018 Change Deliveries by Programme (units) Order Intake (net) 127 256 -50.4% Units A320 74% Order Book 7,133 7,383 -3.4% A350 13% A220 6% Deliveries Units 571 503 13.5% A330 6% Revenues 35,572 30,478 16.7% A380 1% R&D Expenses 1,495 1,456 2.7% in % of Revenues 4.2% 4.8% E
Slide 12: Helicopters
12 HELICOPTERS IN € MILLION 9m 2019 9m 2018 Change External Revenue Split Order Intake (net) 173 230 -24.8% Units Civil 51% Order Book 681 704 -3.3% Defence 49% Deliveries Units 209 218 -4.1% Revenues 3,712 3,755 -1.1% R&D Expenses 216 214 0.9% in % of Revenues 5.8% 5.7% EBIT Adjusted 205 202 1.5% i
Slide 13: Defence and Space
13 DEFENCE AND SPACE IN € MILLION 9m 2019 9m 2018 Change External Revenue Split Order Intake (net) Value 6,064 4,988 21.6% Platforms 70% Services 30% Revenues 7,706 7,051 9.3% R&D Expenses 216 219 -1.4% in % of Revenues 2.8% 3.1% EBIT Adjusted 355 409 -13.2% in % of Revenues 4.6% 5.8% EBIT 83 479 -8
Slide 14: Guidance
Company Business Guidance Highlights Highlights Highlights
Slide 15: 2019 Guidance
15 2019 GUIDANCE As the basis for its 2019 guidance, Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions Airbus 2019 Earnings and FCF guidance is before M&A Airbus now targets around 860 commercial aircraft deliver
Slide 16: Key Priorities
16 KEY PRIORITIES Focus on deliveries in 2019 and beyond Ramp-up A320neo, including ACF Improve A350 margins Improve programme execution across businesses Services, Digital and Innovation Deliver Earnings and FCF growth potential
Slide 17: Appendix
AIRBUS 9m Results 2019 Appendix AIRBUS
Slide 18: Expected Airbus Average Hedge Rates € vs. $
18 EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $ Active exposure management 1.34 Average 1.32 1.32 Hedge Rates 1.31 1.30 FY 2018 1.24 1.28 1.27 FY 2019E 1.24 1.26 1.24 1.22 1.23 1.20 1.20 1.21 (1) 1.18 1.20 1.18 1.16 1.14 Q1 Q2 Q3 Q4 2019 E FY 2018 (1) Q3 actual
Slide 19: 9M 2019 Detailed Income Statement and Adjustments
19 9M 2019 DETAILED INCOME STATEMENT AND ADJUSTMENTS IN € MILLION thereof Adjustments Impact on EBIT 9m 2019 Financial 9m 2019 Operational FX Reported Result Adjusted Defence and Airbus + Defence Airbus Helicopters Space(1) and Space(2) EBIT 3,431 4,133 (225) (2) (222) (253) in % of Revenues 7.4% 9.
Slide 20: 9M 2018 Detailed Income Statement and Adjustments
20 9M 2018 DETAILED INCOME STATEMENT AND ADJUSTMENTS IN € MILLION thereof Adjustments Impact on EBIT 9m 2018 Financial 9m 2018 Operational FX Reported Result Adjusted Defence and Airbus + Defence Airbus Helicopters Space(1) and Space(2) EBIT 2,683 2,738 (109) (23) 51 26 in % of Revenues 6.6% 6.8% In
Slide 21: Q3 2019 Key Figures
21 Q3 2019 KEY FIGURES IN € MILLION Q3 2019 Q3 2018 Revenues 15,302 15,451 EBIT Adjusted 1,604 1,576 EBIT 1,338 1,563 Net Income 989 957 FCF before M&A (904) (273) FCF before M&A and Customer Financing (956) (201) Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 IN € MILLION Revenues EBIT Adjusted EB
Slide 22: Airbus: Strong Liquidity Position as of September 2019
22 AIRBUS: STRONG LIQUIDITY POSITION AS OF 30 SEPTEMBER 2019 € 3.0 bn Credit Facility: Credit Facility (RSCF) Maturity 2021, undrawn Fully committed by 40 banks No financial covenants, no MAC clause Financing Liabilities: of which long-term: € 8.8 bn € 12.2 bn Includes € 3.0 bn EMTN, € 0.5 b
Slide 23: Detailed Free Cash Flow
23 DETAILED FREE CASH FLOW IN € MILLION 9m 2019 9m 2018 Net Cash position at the beginning of the period 13,281 13,390 First time impact of IFRS 16 (1,352) - Gross Cash Flow from Operations (1) 4,538 2,517 (2) Change in working capital (8,244) (5,687) (3) Cash used for investing activities (1,421) (
Slide 24: Net Cash Position
24 NET CASH POSITION IN € MILLION Sep. 2019 Dec. 2018 Gross Cash 17,775 22,207 Financing Debts (12,199) (8,926) Long-term Financing Debts (8,783) (7,463) Short-term Financing Debts (3,416) (1,463) Reported Net Cash 5,576 13,281 Airbus non-recourse debt 27 28 Net Cash excl. non-recourse 5,599 13,309
Slide 25: Customer Financing Exposure
25 CUSTOMER FINANCING EXPOSURE IN € MILLION Sep. 2019 Dec. 2018 Sep. 2019 Dec. 2018 Airbus Helicopters Closing rate € 1 = $ 1.09 $ 1.15 $ 1.09 $ 1.15 Total Gross Exposure 808 802 66 109 of which off-balance sheet 105 28 10 10 Estimated value of collateral (616) (562) (46) (35) Net Exposure 192 240 2
Slide 26: Airbus Customer Financing
26 AIRBUS CUSTOMER FINANCING IN € BILLION Additions Sell Down Amortization Net change 1.0 0.8 0.9 0.8 0.8 0.7 0.6 0.6 0.6 0.5 0.3 0.2 Airbus Customer 0.1 Financing Gross (0.2) (0.2) (0.3) (0.2) Exposure (0.7) (0.6) (0.5) (0.7) (0.6) (0.1) (0.1) (0.7) (0.7) (0.7) (0.1) (1.1) (0.1) (0.1) (0.2) (0.2) (
Slide 27: Balance Sheet Highlights: Assets
27 BALANCE SHEET HIGHLIGHTS: ASSETS IN € MILLION Sept. 2019 Dec. 2018 Non-current Assets 58,560 56,564 of which Intangible & Goodwill 16,583 16,726 of which Property, plant & equipment 17,143 16,773 of which Investments & long-term financial assets 5,858 5,504 of which Contract assets 79 65 of which
Slide 28: Balance Sheet Highlights: Liabilities
28 BALANCE SHEET HIGHLIGHTS: LIABILITIES IN € MILLION Sept. 2019 Dec. 2018 Total Equity 4,739 9,719 of which OCI (Other Comprehensive Income) (2,339) 134 of which Non-controlling interests 12 (5) Total Non-current liabilities 53,182 44,693 of which Pensions 11,092 6,690 of which Other provisions 4,5
Slide 29: Shareholding Structure as at September 2019
29 SHAREHOLDING STRUCTURE AS AT 30 SEPTEMBER 2019 Free Float (73.7%) Shareholder Agreement (26.2%) SOGEPA (11.0%) GZBV (11.0%) SEPI (4.2%) Treasury Shares (0.1%) 778,096,721 shares issued as at 30 September 2019
Slide 30: Quarterly Revenues Breakdown (Cumulative)
30 QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) IN € MILLION Q1 H1 9m FY 2019 2018 2019 2018 2019 2018 2019 2018 Airbus 9,697 7,222 24,043 18,546 35,572 30,478 47,970 Helicopters 1,007 961 2,371 2,388 3,712 3,755 5,934 Defence and Space 2,112 2,217 5,015 4,652 7,706 7,051 11,063 Transversal & Elim. (26
Slide 31: Quarterly EBIT Adjusted Breakdown (Cumulative)
31 QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE) IN € MILLION Q1 H1 9m FY 2019 2018 2019 2018 2019 2018 2019 2018 Airbus 536 (41) 2,338 867 3,833 2,340 4,808 Helicopters 15 (3) 125 135 205 202 380 Defence and Space 101 112 233 309 355 409 935 Transversal & Elim. (103) (54) (167) (149) (260) (213) (
Slide 32: Quarterly EBIT Breakdown (Cumulative)
32 QUARTERLY EBIT BREAKDOWN (CUMULATIVE) IN € MILLION Q1 H1 9m FY 2019 2018 2019 2018 2019 2018 2019 2018 Airbus 392 (2) 2,151 773 3,405 2,238 4,295 Helicopters 9 (10) 124 114 203 179 366 Defence and Space (117) 265 (15) 382 83 479 676 Transversal & Elim. (103) (54) (167) (149) (260) (213) (289) Con
Slide 33: 9M 2019 IFRS vs. APM Cash Flow Reconciliation
33 9M 2019 IFRS VS. APM CASH FLOW RECONCILIATION IN € BILLION IN € BILLION 9m 2019 9m 2019 Cash provided by (used for) operating activities (3.9) Cash provided by (used for) operating activities (3.9) t/o Reimbursement from / contribution to plan assets (0.1) Cash provided by (used for) investing ac
Slide 34: Glossary on Alternative Performance Measures (APM)
34 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