Airbus Se · EURONEXT:AIR
Airbus — Q1 2019 Earnings Presentation
34 slides from Airbus's earnings presentation, Apr 30, 2019
Slide 1: Q1 2019 Results
30 April 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, Business Highlights, Guidance
Company Business Guidance Highlights Highlights Highlights
Slide 4: Q1 2019 Highlights
4 Q1 2019 HIGHLIGHTS New management team in place Robust commercial aircraft environment Q1 2019 financials reflect mainly A320 ramp-up and delivery phasing 2019 Guidance maintained
Slide 5: Q1 2019 Commercial Positioning
5 Q1 2019 COMMERCIAL POSITIONING Consolidated Airbus Order Book Consolidated Airbus by Division External Revenue by Division Q1 2019 Order Intake (net) (58) Airbus (in units) Order Book 7,357 Order Intake (net) 66 € 12.5 bn Helicopters (in units) t/o defence Order Book 737 € 1.7 bn Defence and Space
Slide 6: Q1 2019 Financial Performance
6 Q1 2019 FINANCIAL PERFORMANCE Revenues EBIT Adjusted in € bn in € bn / RoS (%) 4.4% 12.5 10.1 0.1% 0.55 0.01 Q1 2018 Q1 2019 Q1 2018 Q1 2019 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn (3.8) (4.3) 0.47 (0.06) Q1 2018 Q1 2019 Q1 2018 Q1 2019 (1) Q1 2019 Average number of shar
Slide 7: Q1 2019 Profitability
7 Q1 2019 PROFITABILITY EBIT Performance in € bn Q1 2019 EBIT Reported of € 181 m Q1 2019 EBIT Adjustments resulting from: € – 190 m Defence export ban 0.55 € – 83 m PDP mismatch / BS revaluation 0.20 0.18 € – 61 m A380 programme cost 0.01 € – 34 m Others EBIT Adjusted EBIT Reported Q1 2018 Q1 2019
Slide 8: Currency Hedge Policy
8 CURRENCY HEDGE POLICY IN $ BILLION Forward Sales as of Mar. 2019 Collars as of Mar. 2019 6.3 4.6 Forward Sales and Collars as of Dec. 2018 1.7 21.3 20.7 19.2 10.6 3.7 2019 2020 2021 2022 2023 Average hedge rates remaining 9 months and beyond € vs $ 1.20 1.23 1.24 1.26 1.28 Forwards/Collars (2) ( 1
Slide 9: Q1 2019 Cash Evolution
9 Q1 2019 CASH EVOLUTION IN € BILLION 0.7 -1.4 -4.7 13.3 -0.4 -0.1 -0.1 Free Cash Flow before M&A : € - 4.4 bn t/o Customer Financing: € - 0.1 bn Free Cash Flow before M&A and 7.5 Customer Financing € - 4.3 bn (2) IFRS Net Cash position IFRS 16 16 initial Gross Cash Flow Change in Cash used for M&A
Slide 10: Company Highlights, Business Highlights, Guidance
Company Business Guidance Highlights Highlights Highlights
Slide 11: Airbus Commercial Aircraft Results
11 IN € MILLION Q1 2019 Q1 2018 Change Deliveries by Programme (units) Order Intake (net) (58) 45 - Units A320 77% Order Book 7,357 7,189 2.3% A350 14% A220 5% Deliveries (units) 162 121 33.9% A330 3% Revenues 9,697 7,222 34.3% A380 1% R&D Expenses 454 430 5.6% in % of Revenues 4.7% 6.0% EBIT Adjust
Slide 12: Helicopters
12 HELICOPTERS IN € MILLION Q1 2019 Q1 2018 Change External Revenue Split Order Intake (net) 66 104 -36.5% Units Civil 51% Order Book 737 744 -0.9% Defence 49% Deliveries (units) 46 52 -11.5% Revenues 1,007 961 4.8% R&D Expenses 69 70 -1.4% in % of Revenues 6.9% 7.3% EBIT Adjusted 15 (3) - in % of R
Slide 13: Defence and Space
13 DEFENCE AND SPACE IN € MILLION Q1 2019 Q1 2018 Change External Revenue Split Order Intake (net) Value 1,074 1,581 -32.0% Platforms 69% Services 31% Revenues 2,112 2,217 -4.7% R&D Expenses 61 58 5.2% in % of Revenues 2.9% 2.6% EBIT Adjusted 101 112 -9.9% in % of Revenues 4.8% 5.1% EBIT (117) 265 -
Slide 14: Company Highlights, Business Highlights, 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 targets 880 to 890 commercial aircraft deliveries
Slide 16: Key Priorities
16 KEY PRIORITIES Deliver on 2019 commitments Ramp-up A320 Improve A350 margins Leverage military portfolio Services, Digital and Innovation Deliver Earnings and FCF growth potential
Slide 17: Appendix
AIRBUS C1 Results 2019 Appendix AIRBUS
Slide 18: Expected Airbus Average Hedge Rates € vs. $
18 EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $ Active exposure management 1.34 (1) Average 1.32 1.32 Hedge Rates 1.31 1.30 FY 2018 1.24 1.28 1.27 FY 2019E 1.23 1.26 1.24 1.23 1.22 1.20 1.20 1.18 1.20 1.18 1.16 1.17 1.14 Q1 Q2 Q3 Q4 2019 E FY 2018 (1) Q1 actual
Slide 19: Q1 2019 Detailed Income Statement and Adjustments
19 Q1 2019 DETAILED INCOME STATEMENT AND ADJUSTMENTS IN € MILLION thereof Adjustments Impact on EBIT Financial Q1 2019 Q1 2019 Operational FX Result Adjusted Defence and Airbus + Defence Airbus Helicopters Space(1) and Space EBIT 181 549 (87) (192) (6) (83) in % of Revenues 1.4% 4.4% Interest income
Slide 20: Q1 2018 Detailed Income Statement and Adjustments
20 Q1 2018 DETAILED INCOME STATEMENT AND ADJUSTMENTS IN € MILLION thereof Adjustments Impact on EBIT Financial Q1 2018 Q1 2018 Operational FX Result Adjusted Defence and Airbus Helicopters Airbus Space(1) EBIT 199 14 (7) 153 (7) 46 in % of Revenues 2.0% 0.1% Interest income 41 41 Interest expenses (
Slide 21: Q1 2019 Key Figures
21 Q1 2019 KEY FIGURES IN € MILLION Q1 2019 Q1 2018 Revenues 12,549 10,119 EBIT Adjusted 549 14 EBIT 181 199 Net Income 40 283 FCF before M&A (4,393) (3,846) FCF before M&A and Customer Financing (4,341) (3,839) Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 IN € MILLION Revenues EBIT Adjusted EBIT
Slide 22: Airbus: Strong Liquidity Position as of March 2019
AIRBUS: STRONG LIQUIDITY POSITION AS OF 31 MARCH 2019 22 € 3.0 bn Credit Facility: Credit Facility (RSCF) Maturity 2021, undrawn Fully committed by 40 banks No financial covenants, no MAC clause Financing Liabilities: € 11.0 bn of which long-term : € 8.7 bn Includes € 3.0 bn EMTN, € 0.5 bn C
Slide 23: Detailed Free Cash Flow
23 DETAILED FREE CASH FLOW IN € MILLION Q1 2019 Q1 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) 725 206 (2) Change in working capital (4,703) (3,797) (3) Cash used for investing activities (470) (65) (4
Slide 24: Net Cash Position
24 NET CASH POSITION IN € MILLION Mar. 2019 Dec. 2018 Gross Cash 18,482 22,207 Financing Debts (11,019) (8,926) Short-term Financing Debts (2,323) (1,463) Long-term Financing Debts (8,696) (7,463) Reported Net Cash 7,463 13,281 Airbus non-recourse debt 22 28 Net Cash excl. non-recourse 7,485 13,309
Slide 25: Customer Financing Exposure
25 CUSTOMER FINANCING EXPOSURE IN € MILLION Mar. 2019 Dec. 2018 Mar. 2019 Dec. 2018 Airbus Helicopters Closing rate € 1 = $ 1.12 $ 1.15 $ 1.12 $ 1.15 Total Gross Exposure 907 803 111 109 of which off-balance sheet 109 28 10 10 Estimated value of collateral (636) (562) (37) (35) Net Exposure 271 241
Slide 26: Airbus Customer Financing
26 AIRBUS CUSTOMER FINANCING Additions Sell Down Amortization Net change IN € BILLION 1.0 0.8 0.9 0.8 0.8 0.7 0.6 0.6 0.6 0.5 0.3 0.1 (0.2) 0.1 Airbus Customer (0.2) (0.3) Financing Gross (0.7) (0.5) (0.0) (0.1) (0.1) (0.6) (0.7) (0.6) Exposure (0.7) (0.7) (0.0) (1.1) (0.7) (0.1) (0.1) (0.2) (0.2) (
Slide 27: Balance Sheet Highlights: Assets
27 BALANCE SHEET HIGHLIGHTS: ASSETS IN € MILLION Mar. 2019 Dec. 2018 Non-current Assets 57,353 56,564 of which Intangible & Goodwill 16,644 16,726 of which Property, plant & equipment 17,537 16,773 of which Investments & Financial assets 5,656 5,504 of which Contract assets 172 65 of which positive
Slide 28: Balance Sheet Highlights: Liabilities
28 BALANCE SHEET HIGHLIGHTS: LIABILITIES IN € MILLION Mar. 2019 Dec. 2018 Total Equity 8,913 9,719 of which OCI (Other Comprehensive Income) (157) 134 of which Non-controlling interests 3 (5) Total Non-current liabilities 46,371 44,693 of which Pensions 7,467 6,690 of which Other provisions 5,075 4,
Slide 29: Shareholding Structure as at March 2019
29 SHAREHOLDING STRUCTURE AS AT 31 MARCH 2019 Free Float (73.6%) Shareholder Agreement (26.3%) SOGEPA (11.1%) GZBV (11.0%) SEPI (4.2%) Treasury Shares (0.1%) 776,367,881 shares issued as at 31 March 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 18,546 30,478 47,970 Helicopters 1,007 961 2,388 3,755 5,934 Defence and Space 2,112 2,217 4,652 7,051 11,063 Transversal & Elim. (267) (281) (616) (863) (1,260) Consolida
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) 867 2,340 4,808 Helicopters 15 (3) 135 202 380 Defence and Space 101 112 309 409 935 Transversal & Elim. (103) (54) (149) (213) (289) Consolidated Airbus 549 14 1,162 2,
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) 773 2,238 4,295 Helicopters 9 (10) 114 179 366 Defence and Space (117) 265 382 479 676 Transversal & Elim. (103) (54) (149) (213) (289) Consolidated Airbus 181 199 1,120 2,683 5,0
Slide 33: Q1 2019 IFRS vs. APM Cash Flow Reconciliation
33 Q1 2019 IFRS VS. APM CASH FLOW RECONCILIATION IN € MILLION IN € MILLION Q1 2019 Q1 2019 Cash provided by (used for) operating activities (4,050) Cash provided by (used for) operating activities (4,050) t/o Reimbursement from / contribution to plan assets (42) Cash provided by (used for) investing
Slide 34: Glossary on Alternative Performance Measures (APM)
34 GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM) 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