Slide 1: H1 Results 2018
AIRBUS H1 Results 2018 26 July 2018 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: H1 Results: Highlights
H1 Results 2018 Company Divisional Guidance Highlights Highlights Highlights
Slide 4: H1 2018 Highlights
H1 2018 HIGHLIGHTS 4 Robust commercial aircraft environment Backlog of ~7,200 a/c underpins ramp-up plans H1 financials reflect mainly A350 performance and delivery phasing Focus on securing ramp-up 2018 Guidance maintained
Slide 5: H1 2018 Commercial Positioning
H1 2018 COMMERCIAL POSITIONING 5 Consolidated Airbus Order Book Consolidated Airbus by Division External Revenue by Division H1 2018 18% Order Intake (net) 206 Airbus (in units) Order book 7,168 9% € 25 bn t/o defence € 4 bn Order Intake (net) 2,068 Helicopters (in € m) Order book 12,537 73% Order I
Slide 6: H1 2018 Financial Performance
H1 2018 FINANCIAL PERFORMANCE 6 Revenues EBIT Adjusted in € bn in € bn / RoS (%) 4.7% 25.2 2.2% 25.0 1.2 0.6 H1 2017 H1 2018 H1 2017 H1 2018 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn 0.96 0.32 H1 2017 H1 2018 H1 2017 H1 2018 (2.1) (4.0) (1) H1 2018 Average number of shares:
Slide 7: H1 2018 Profitability
H1 2018 PROFITABILITY 7 EBIT Performance in € bn H1 2018 EBIT Reported of € 1.1 bn H1 2018 Adjustments resulting from: €- 98 m A400M provision 1.2 1.2 1.1 €- 21 m First H160s 0.6 €- 40 m PDP mismatch / BS revaluation €- 40 m Compliance / Others EBIT Adjusted EBIT Reported €+ 157 m Airbus DS perimete
Slide 8: Currency Hedge Policy
CURRENCY HEDGE POLICY 8 IN $ BILLION ▪ Forward Sales as of June 2018 ▪ Collars as of June 2018 2.8 ▪ Forward Sales and Collars as of Dec. 2017 4.6 12.7 1.7 22.6 19.1 11.6 13.3 4.7 2018 2022 Average hedge rates remaining 6 months 2019 2020 2021 and beyond 1.20 1.24 1.23 1.24 1.26 € vs $ Forwards/Coll
Slide 9: H1 2018 Cash Evolution
H1 2018 CASH EVOLUTION 9 IN € BILLION 1.2 0.3 -4.5 -0.8 Free Cash Flow before M&A : € - 4.1 bn -1.2 t/o Customer Financing: € - 0.1 bn -0.3 13.4 Free Cash Flow before M&A and Customer Financing € - 4.0 bn 8.1 Net Cash Gross Cash Flow Change in Cash used for M&A Shareholder Pensions & Net Cash positi
Slide 10: H1 Results: Company Divisional Highlights
H1 Results 2018 Company Divisional Guidance Highlights Highlights Highlights
Slide 11: Airbus Division H1 2018
11 IN € MILLION H1 2018 H1 2017 Change Deliveries by Programme (units) Order Intake (net) 206 203 1.5% 2% 13% Units 6% Order book 7,168 6,771 5.9% Deliveries (Units) 303 306(1) -1.0% 79% Revenues 18,546 18,182 2.0% ▪ A320 ▪ A330 ▪ A350 ▪ A380 R&D Expenses 975 894 9.1% in % of Revenues 5.3% 4.9% Exte
Slide 12: Helicopters
HELICOPTERS 12 IN € MILLION H1 2018 H1 2017 Change External Revenue Split Order Intake (net) 143 151 -5.3% Units Order book 694 727 -4.5% 51% 49% Order Intake (net) 2,068 3,630 -43.0% Value Order Book 12,537 11,996 4.5% ▪ Defence ▪ Civil Deliveries (Units) 141 190 -25.8% Revenues 2,388 2,716 -12.1%
Slide 13: Defence and Space
DEFENCE AND SPACE 13 IN € MILLION H1 2018 H1 2017 Change External Revenue Split Order Intake (net) 3,184 3,616 -11.9% 32% Order Book 36,462 38,708 -5.8% 68% Revenues 4,652 4,900 -5.1% ▪ Platforms ▪ Services R&D Expenses 136 144 -5.6% in % of Revenues 2.9% 2.9% EBIT Adjusted 309 298 3.7% in % of Reve
Slide 14: H1 Results: Guidance
H1 Results 2018 Company Divisional Guidance Highlights Highlights Highlights
Slide 15: 2018 Guidance
2018 GUIDANCE 15 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 16: Key Priorities
KEY PRIORITIES 16 Deliver ~800 a/c in 2018, prepare further ramp-up potential Leverage competitive product portfolio to strengthen market position Boost efficiency and competitiveness through digital and innovation Deliver EPS and FCF growth potential Earnings and FCF taking off!
Slide 17: Appendix
H1 Results 2018 Appendix AIRBUS
Slide 18: Expected Airbus Average Hedge Rates € vs. $
EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $ 18 Active exposure management 1.36 Average 1.34 1.33 Hedge Rates 1.32 FY 2017 1.29 1.30 1.31 1.29 FY 2018E 1.25 1.28 1.27 1.26 1.25 (1) 1.27 1.24 1.22 1.20 1.21 1.18 1.18 1.16 Q1 Q2 Q3 Q4 2018 E FY 2017 (1) Q2 actual
Slide 19: H1 2018 Detailed Income Statement and Adjustments
H1 2018 DETAILED INCOME STATEMENT AND ADJUSTMENTS 19 IN € MILLION thereof Adjustments Impact on EBIT Financial H1 2018 H1 2018 Operational FX Result Adjusted Defence and Airbus Helicopters Airbus & ADS (2) Space (1) EBIT 1,120 1,162 (40) 59 (21) (40) in % of revenues 4.5% 4.7% Interest income 87 87
Slide 20: H1 2017 Detailed Income Statement and Adjustments
H1 2017 DETAILED INCOME STATEMENT AND ADJUSTMENTS 20 IN € MILLION thereof Adjustments Impact on EBIT Financial H1 2017 H1 2017 Operational FX Result Adjusted Airbus Defence and Space (1) & ADS (2) EBIT 1,211 553 484 174 in % of revenues 4.8% 2.2% Interest income 81 81 Interest expenses (251) (251) O
Slide 21: Q2 2018 Key Figures
Q2 2018 KEY FIGURES 21 IN € MILLION Q2 2018 Q2 2017 Revenues 14,851 13,733 EBIT Adjusted 1,148 572 EBIT 921 636 Net Income 213 682 FCF before M&A (223) (948) FCF before M&A and Customer Financing (129) (824) Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 IN € MILLION Revenues EBIT Adjusted EBIT Air
Slide 22: Strong Liquidity Position as at 30 June 2018
STRONG LIQUIDITY POSITION AS AT 30 JUNE 2018 22 € 3.0 bn Credit Facility: Credit Facility (RSCF) ▪ Maturity 2021, undrawn ▪ Fully committed by 40 banks ▪ No financial covenants, no MAC clause € 9.7 bn Financing Liabilities: Financing Liabilities of which long-term : € 7.6 bn ▪ Includes € 3.0 bn EMTN
Slide 23: Detailed Free Cash Flow
DETAILED FREE CASH FLOW 23 IN € MILLION H1 2018 H1 2017 Net Cash position at the beginning of the period 13,390 11,113 Gross Cash Flow from Operations (1) 1,185 1,050 Change in working capital (4,501) (2,907) Cash used for investing activities (2) (481) (99) of which Industrial Capex (additions) (3)
Slide 24: Net Cash Position
NET CASH POSITION 24 IN € MILLION June 2018 Dec. 2017 Gross Cash 17,775 24,587 Financing Debts (9,707) (11,197) Short-term Financing Debts (2,071) (2,213) Long-term Financing Debts (7,636) (8,984) Reported Net Cash 8,068 13,390 Airbus non-recourse debt 32 29 Net Cash excl. non-recourse 8,100 13,419
Slide 25: Customer Financing Exposure
CUSTOMER FINANCING EXPOSURE 25 IN € MILLION June 2018 Dec. 2017 June 2018 Dec. 2017 Airbus Helicopters Closing rate € 1 = $ 1.17 $1.20 $ 1.17 $ 1.20 Total Gross Exposure 1,052 1,264 134 135 of which off-balance sheet 31 144 4 4 Estimated value of collateral (802) (953) (50) (64) Net Exposure 250 311
Slide 26: Airbus Customer Financing
AIRBUS CUSTOMER FINANCING 26 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 0.4 Airbus Customer (0.2) 0.1 Financing Gross (0.3) (0.3) (0.5) Exposure (0.1) (0.2) (0.7) (0.7) (0.7) (0.7) (0.6) (0.7) (0.1) (1.1) (0.1) (0.1) (0.1) (0.2) (0.2) (0.1) (
Slide 27: Balance Sheet Highlights: Assets
BALANCE SHEET HIGHLIGHTS: ASSETS 27 IN € MILLION June 2018 Dec. 2017 Non-current Assets 51,905 53,526 of which Intangible & Goodwill 11,581 11,629 of which Property, plant & equipment 16,476 16,611 of which Investments & Financial assets 5,821 5,821 of which positive hedge mark-to-market 1,546 2,901
Slide 28: Balance Sheet Highlights: Liabilities
BALANCE SHEET HIGHLIGHTS: LIABILITIES 28 IN € MILLION June 2018 Dec. 2017 Total Equity 9,191 10,742 of which OCI (Other Comprehensive Income) 1,569 2,742 of which Non-controlling interests (8) 2 Non-current liabilities 40,054 42,162 of which pensions 8,194 8,025 of which other provisions 1,649 1,754
Slide 29: Shareholding Structure as at 30 June 2018
SHAREHOLDING STRUCTURE AS AT 30 JUNE 2018 29 0.1% Free Float 73.6% 4.2% 11.0% Shareholder Agreement 26.3% 11.1% SOGEPA 11.1% GZBV 11.0% 73.6% SEPI 4.2% Treasury Shares 0.1% 774,556,062 shares issued as at 30 June 2018
Slide 30: Quarterly Revenues Breakdown (Cumulative)
QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) 30 IN € MILLION Q1 H1 9m FY 2018 2017 2018 2017 2018 2017 2018 2017 Airbus 7,222 8,166 18,546 18,182 27,579 43,486 Helicopters 961 1,176 2,388 2,716 4,197 6,335 Defence and Space 2,217 2,340 4,652 4,900 7,074 10,596 Transversal & Elim. (281) (240) (616) (623
Slide 31: Quarterly EBIT Adjusted Breakdown (Cumulative)
QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE) 31 IN € MILLION Q1 H1 9m FY 2018 2017 2018 2017 2018 2017 2018 2017 Airbus (41) (103) 867 257 806 2,383 Helicopters (3) (6) 135 80 161 247 Defence and Space 112 118 309 298 343 815 Transversal & Elim. (54) (28) (149) (82) (156) (255) Consolidated Airbus
Slide 32: Quarterly EBIT Breakdown (Cumulative)
QUARTERLY EBIT BREAKDOWN (CUMULATIVE) 32 IN € MILLION Q1 H1 9m FY 2018 2017 2018 2017 2018 2017 2018 2017 Airbus (2) (48) 773 381 779 2,257 Helicopters (10) (6) 114 80 161 247 Defence and Space 265 657 382 832 835 462 Transversal & Elim. (54) (28) (149) (82) (156) (301) Consolidated Airbus 199 575 1
Slide 33: H1 2018 IFRS vs. APM Cash Flow Reconciliation
H1 2018 IFRS VS. APM CASH FLOW RECONCILIATION 33 IN € BILLION H1 2018 IN € BILLION H1 2018 Cash provided by (used for) operating activities (3.49) Cash provided by (used for) operating activities (3.49) t/o Reimbursement from / contribution to plan assets (0.13) Cash provided by (used for) investing
Slide 34: Glossary on Alternative Performance Measures (APM)
GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM) 34 The following 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 a