Lagardere Sa · EURONEXT:MMB
Lagardere Sa — Investor Day (February 2004)
35 slides from Lagardere Sa's investor day presentation, February 2004
Slide 1: Positionned for the Upturn
Positionned for the Upturn Pierre de Bausset SVP Investor Relations Lagadere Investor Day - Paris - 2nd February 2003 1
Slide 2: 1. Leading 2. Robust 3. And Growing
1. Leading 2. Robust 3. And Growing 2
Slide 3: EADS Divisional Highlights
EADS Divisional Highlights Military Aeronautics Space Defence Airbus Transport (Astrium 100% and Security Aircraft since Jan. 2003) Systems Sept 2003 order book € 153.3 bn € 20.4 bn € 9.7 bn € 4.2 bn € 13.5 bn FY2002 Revenues € 19.5 bn € 0.5 bn € 3.8 bn € 2.2 bn € 4.8 bn FY2002 EBIT € 1,361 m € (80)
Slide 4: EADS: a Global Leader
EADS: a Global Leader …. Boeing 54 EADS 168,4 EADS 29,9 Boeing 136* LM 26,6 LM 70,4 BAE 19 BAE 66,4 NG 17,2 GD 29 Raytheon 16,8 Revenues NG 26,1 Orderbook GD 13,8 No. 2 Raytheon 26,7 No. 1 Thales 11,1 Thales 19 FM 4 FM 16,2 L3 4 Saab 4,7 *order book recalculated for comparison: Saab 2002 figures for
Slide 5: 1. Leading 2. Robust 3. And Growing
1. Leading 2. Robust 3. And Growing 5
Slide 6: Solid and Resilient Performance… in the downturn
Solid and Resilient Performance… in the downturn Financial Highlights EBIT- margin pre R&D in €bn FY 01 FY 02 9-m 03 FY 01 FY 02 9-mth03 Revenues 30.8 29.9 18.5 12.6 % EBIT* margin pre-R&D 11.5 % 11.8 % EBIT* 1.69 1.43 0.78 4.3% Other R&D expenses Net cash 4.3% 4.8% position 1.53 1.22 0.36 1.2% 2.7%
Slide 7: Airbus resists… thanks to market share gains
Airbus resists… thanks to market share gains… Airbus delivery Annual deliveries market share 700 60% 620 52% 600 563 50% Boeing 489 527 500 40% 400 381 close 29% Airbus to 300 305 30% 300 311 325 229 294 303 281 275 - 290 200 20% 1998 1999 2000 2001 2002 2003 2004e Order-Book in Units 1750 Airbus Bo
Slide 8: Airbus resists … thanks to industrial flexibility
Airbus resists … thanks to industrial flexibility 20% Headcount Flexibility in Manufacturing Aircraft deliveries 550 Flextime 500 Overtime Temporary 450 Delivery plan before Sept11 400 Limited 12% Short term 350 subcontracting permanent 300 a/c 300 311 325 Potentials 303 8% (early retirement, 250 20
Slide 9: Continuing hedge policy
Continuing hedge policy Approx. 50% of EADS US$ revenues are naturally hedged by US$ procurement à at the level of 300a/c a year annual net exposure is broadly ~ $10bn EADS hedge portfolio (US$ 44.6 bn) on Sept. 30, 2003 Volume already hedged 12 9,7 10 8,1 7,6 8 6,0 US$ bn 6 5,1 3,6 3,0 4 2 1,1 0,4
Slide 10: Delivering on Promises
Delivering on Promises 2001 We promised… and achieved Book-to-bill over one ü >2.0 EBIT* +15% from 2000 ü + 27% Revenues +20% from 2000 ü + 21% Free Cash Flow ~0 ü € 0.8 bn We promised… and achieved 2002Book-to-bill over one ü 1.04 EBIT* of 1.4 €bn ü € 1.4 bn Revenues stable ü € 29.9 bn Net cash pos
Slide 11: 1. Leading 2. Robust 3. And Growing
1. Leading 2. Robust 3. And Growing 11
Slide 12: Continuing EADS growth momentum
Continuing EADS growth momentum Commercial Defence aviation 7.0 6.9 years years 5.0 5.1 5.0 years years years Space and other 3.7 commercial years 1.2 1.3 1.3 years years years as of Dec. 02 as of June 03 as of Sept.03 Orderbook times 2002 revenues, except for Airbus (times deliveries) 12
Slide 13: Defence: Backlog Drives Growth
Defence: Backlog Drives Growth Eurocopter 4% Military Aircraft 5% 8% Space 17% Systems, Defence Electronics, Services Missiles 22% 21% Telecom 7% Military Transport 16% Aircraft Airbus Revenues € bn Airbus 10 Space 8 Missiles 6 Telecom Systems & Defence Elect., Services 4 Military Transport Aircraft
Slide 14: Space: Laid Groundwork For Tomorrow
Space : Laid Groundwork For Tomorrow Space EBIT : strong leverage on EADS profits growth PROFIT 2001 2002 e2003 BREAKEVEN e2004 e2005 € (222) m € (268) m LOSS Breakeven in 2004 • Restructuring under-way : 2003 charge of € 280 m ~3300 jobs, centres of competence… Be the european • Arianespace: prime
Slide 15: Airbus: Deliveries Recovery with Upturn
Airbus: Deliveries Recovery with Upturn Air traffic Air traffic annual growth* Total industry deliveries/fleet 25% 9% 7.9% 20% 7.3% 6.9% Deliveries in % 6.5% Of fleet 15% 10% 6% 5% Cyclical 0% industry … -5% 3.9% 3.7% 3.5% 3% 1971 1976 1981 1986 1991 1996 2001 * ICAO data Annual world air traffic (k
Slide 16: Airbus: Potential For Profitability Growth
Airbus: Potential For Profitability Growth 16% 16.7% EBIT* margin pre-R&D 15.6% Other R&D expenses Current profitability 4.6% 6% 4.4% • Strong despite heavy R&D and A380 related R&D lower deliveries 2% 4.2% expenses 6.3% • Improving mix 8% EBIT* margin • Productivity improvements 7% 5.8% FY2001 FY20
Slide 17: Safe Harbor Statement
Safe Harbor Statement Certain of the statements contained in today’s presentations are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on management‘s beliefs. These statements reflect the Company‘s views and assumptions as of
Slide 18: Appendix
Appendix 18
Slide 19: Strong and Stable Shareholder Structure
Strong and Stable Shareholder Structure as of 5th Dec. 2003 SOGEADE SEPI Daimler Lagardère Chrysler & Free Float French State 30.1% 30.07% 5.50% 30.07% Contractual Partnership 65.64% 2.73% 0.06% EADS 1.47% repurchased (no voting rights) 19
Slide 20: Profit & Loss Highlights
Profit & Loss Highlights 9m 2003 9m 2002 in % of in % of €m Revenues €m Revenues Revenues 18,536 19,996 self-financed R&D 1,561 8.4% 1,356 6.8% EBITDA 1,877 10.1% 2,134 10.7% EBIT* 784 4.2% 1,013 5.1% EBIT* before R&D 2,345 12.8% 2,369 11.8% Interest result (138) (0.7%) (77) (0.4%) Taxes (208) (1.1%
Slide 21: Defence businesses improvement, Airbus resilience
Defence businesses improvement, Airbus resilience A380 R&D Airbus* Aeronautics HQ Space excl. A380 MTA (266) DS • A380 peak (83) 101 • Restructuring (105) 124 • Astrium 100% HQ first time Deliveries Defence improvement consolidation decrease partly programs 1,013 and offset by mix delivery higher re
Slide 22: Development of Net Cash
Development of Net Cash 9m 2003 9m 2002 in € m Net cash at the beginning of the period 1,224 1,533 Gross Cash Flow from Operations* 1,099 1,207 Change in working capital 183 (78) Cash used for investing activities** (2,003) (1,751) of which Industrial Capex (additions)*** (1,328) (1,414) of which Cu
Slide 23: Balance Sheet Highlights
Balance Sheet Highlights Sept. Dec. in € m 2003 2002 Assets 51,324 47,400 of which Goodwill 9,415 9,586 of which cash & equivalents, securities 6,300 6,200 of which positive hedge mark-to-market 5,907 2,819 Stockholders' equity 14,536 12,765 of which OCI (Other Comprehensive Income) 4,587 2,452 Mino
Slide 24: Customer Financing Exposure under control
Customer Financing Exposure under control all figures in € m Figures for 100% Airbus Sept. 2003 Dec. 2002 closing rate $/€ 1.165 1.049 Total Gross exposure* 3,689 3,581 of which off-balance sheet 784 891 Estimate value of collateral (2,139) (2,062) Net exposure 1,550 1,519 Provision (1,550) (1,519)
Slide 25: EBIT* Calculation
EBIT* Calculation Sept. Sept. in € m 2003 2002 Result before financial inc. and 54 368 income tax Income from investments ** 137 42 Exceptionals: Goodwill amortisation 422 431 Fair value adjustment 171 172 EBIT* 784 1,013 * pre goodwill and exceptionals ** incl. Dassault-Aviation contribution for €
Slide 26: Restructuring, Write-off and Disposal Items Included in EBIT*
Restructuring, Write-off and Disposal Items … Included in EBIT* €m 9m 2003 9m 2002 EBIT* 784 1,013 EBIT* margin (% of revenues) 4.2% 5.1% EADS EBIT* includes the following items Airbus Aircelle disposal - 63 MTA Asset depreciation - (54) DS Restructuring (22) - Space Restructuring (88) - Asset Depre
Slide 27: Net Income pre Goodwill and Exceptionals
Net Income pre Goodwill and Exceptionals Sept. Sept. in € m 2003 2002 Net Income (124) 23 Goodwill amortisation 422 431 Exceptionals: Fair value adjustment on fixed assets 160 163 Fair value adjustment on inventories 11 9 Tax impact on exceptional fair value (61) (62) Minorities on exceptional fair
Slide 28: Quarterly figures Q3 2003: All divisions but Space turn to positive EBIT
Quarterly figures Q3 2003 : All divisions but Space turn to positive EBIT in € bn Q3 2003 Q3 2002 Revenues 5.5 € bn 6.0 € bn EBIT* 0.2 € bn 0.2 € bn FCF before cust. financing** (0.4 € bn) (0.4 € bn) New orders 6.3 € bn 7.6 € bn * pre goodwill and exceptionals ** excl. investments in medium term sec
Slide 29: Quarterly Revenues Breakdown (Cumulative)
Quarterly Revenues Breakdown (Cumulative) Q1 Q2 Q3 Q4 in €m 2003 2002 2002 2002 2002 new format* new format* 2003 new format* 2003 new format* 2003 new format* Airbus 3,775 4,646 8,773 9,870 12,051 13,750 19,512 MTA 96 101 268 234 410 310 524 Aeronautics* 686 673 1,613 1,606 2,452 2,440 3,834 Space
Slide 30: Quarterly EBIT* Breakdown (Cumulative)
Quarterly EBIT* Breakdown (Cumulative) Q1 Q2 Q3 Q4 in €m 2003 2002 2002 2002 2002 new format** new format** 2003 new format** 2003 new format** 2003 new format** Airbus 166 396 621 874 701 1,072 1,361 MTA (11) (12) (8) (72) (7) (79) (80) Aeronautics** 16 5 59 29 112 84 180 Space (21) (33) (131) (85)
Slide 31: Quarterly Order-intake Breakdown (Cumulative)
Quarterly Order-intake Breakdown (Cumulative) Q1 Q2 Q3 Q4 in €m 2003 2002 2002 2002 2002 new format* new format* 2003 new format* 2003 new format* 2003 new format* Airbus 3,416 1,261 33,174 10,334 37,028 15,446 19,712 MTA 122 61 20,104 214 20,195 290 403 Aeronautics* 706 1,286 1,440 1,982 2,213 2,73
Slide 32: Quarterly Order-book Breakdown
Quarterly Order-book Breakdown Q1 Q2 Q3 Q4 in €m 2003 2002 2002 2002 2002 new format* new format* 2003 new format* 2003 new format* 2003 new format* Airbus 134,615 151,794 154,428 145,500 153,302 148,898 140,996 MTA 677 1,295 20,476 1,283 20,429 1,258 633 Aeronautics* 10,193 10,560 9,828 10,336 9,71
Slide 33: Airbus Family Same pilots
Airbus Family Single Type Rating A318 A320 family A319 Single-aisle A320 Fly-by-wire A321 Same A330-200 • flight deck A330-300 • handling characteristics A340-200 • procedures A340-300 Wide-body Fly-by-wire A340-500 A340-600 A380 Same pilots 33
Slide 34: Airbus resists … thanks to solid order-book
Airbus resists … thanks to solid order-book Order-Book in Units 1750 Airbus Boeing • Deliveries of firm orders : 300+ 1500 1,454 in 2003, 600+ over 2004 -2005 1250 1000 1,126 1,110 • Balanced regional breakdown 750 615 • Firm contracts mean down- 500 payment cashed in Jan ‘95 Dec. ‘03 Regional break
Slide 35: EADS: strict control of customer financing
EADS : strict control of customer financing Outstanding gross customer financing exposure (US$bn) 7 A discretionary tool … 0.88 (excl. stipulated loss values) 6 0.9 • Granted on a case-by-case basis 5 0.59 • Pricing in line with market conditions 4 5.7 0.87 0.82 0.64 5.36 0.73 • Active sell-down pol