Airbus Se · EURONEXT:AIR
Airbus — DZ Bank Equity Conference (November 2017)
17 slides from Airbus's conference presentation, Nov 20, 2017
Slide 1: Airbus 9m 2017 Roadshow Presentation
AIRBUS 9m 2017 Roadshow Presentation DZ Bank Equity Conference November 20th, 2017
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 2017 Highlights
9M 2017 HIGHLIGHTS 3 Healthy commercial aircraft market; robust backlog supports ramp-up plans Engine delays impacting 9m results Focus on Q4 deliveries and ramp-up 2017 Guidance confirmed
Slide 4: 9M 2017 Commercial Positioning
9M 2017 COMMERCIAL POSITIONING 4 Airbus Order Book* Airbus External by Region (by value) Revenue Split by Division 9% 5% 16% 33% 13% 9% € 945 bn € 43 bn t/o defence € 38.2 bn t/o defence € 6.4 bn 19% 75% 21% ● Asia Pacific ● Middle East ● Commercial Aircraft ● Europe ● Latin America ● Helicopters ●
Slide 5: Market Environment
MARKET ENVIRONMENT 5 Global Economy Interest Rates Foreign Exchange Oil and Gas World real GDP and passenger traffic September 2017 % (year-over-year) Passenger Traffic 14% 12% +5.7% 10% 8% 6% 4% 2% 0% -2% -4% World real GDP -6% -8% World passenger traffic (RPKs*) -10% JQ1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q
Slide 6: Long Term Demand for Aircraft
LONG TERM DEMAND FOR AIRCRAFT 6 2017-2036 demand for 34,900 aircraft Propensity to travel 2016 trips per Capita Bubbles proportional 15 14.3 100% To country population 75% Thousand aircraft 10 6.8 50% 5.6 5 2.7 2.5 25% 1.2 1.1 0 0% Asia Europe North Latin Middle CIS Africa 2016 GDP per Capita Pacifi
Slide 7: Commercial Aircraft Backlog and Deliveries
COMMERCIAL AIRCRAFT BACKLOG AND DELIVERIES 7 Airbus backlog* well aligned with regional needs and Over 10 years production in backlog demand forecast in units 6,831 6,874 6,386 5,559 Europe 4,682 & CIS North 4,437 America Asia 16% / 24% 3,552 Pacific 3,715 9% / 16% 3,421 3,488 688 Middle 30% / 42% E
Slide 8: Comprehensive Commercial Aircraft Product Line for Any Market
COMPREHENSIVE COMMERCIAL AIRCRAFT PRODUCT LINE FOR ANY MARKET 8 A380: 317 orders from 18 customers Capacity to capture traffic growth A350XWB: 858 orders from 45 customers Long-range and ultra-long haul routes A330 Family: 1,694 orders from 115 customers Flying from 30 minutes to over 15 hours A320
Slide 9: Key Programme Status
KEY PROGRAMME STATUS 9 A320 SA remains very healthy: we are sold out until 2022, including protection Deliveries end October: 399 A320 family delivered, t/o 112 A320/A321neo Neo ramp-up impacted by engine availability. Delivery profile Q4 loaded At the beginning of the year, we targeted around 200 A
Slide 10: 9M 2017 Financial Performance
9M 2017 FINANCIAL PERFORMANCE 10 Revenues EBIT Adjusted 5.6% 4.2% in € bn / RoS (%) in € bn 42.7 43.0 2.41 1.80 9m 2016 9m 2017 9m 2016 9m 2017 EPS(1) Adjusted FCF before M&A and Customer Financing (3.3) (4.2) in € 1.96 in € bn 1.38 9m 2016 9m 2017 9m 2016 9m 2017 (1) 9m 2017 Average number of share
Slide 11: 9M 2017 Profitability
9M 2017 PROFITABILITY 11 EBIT Performance 9m 2017 EBIT reported of € 2.3 bn 9m 2017 Adjustments resulting from: €- 150 m A400M LMC in € bn 2.41 2.36 2.31 €+ 43 m $ PDP mismatch / BS Revaluation 1.80 €+ 19 m Other AD Portfolio €+ 604 m Defence Electronics net capital gain €+ 516 m Net Adjustments 9m
Slide 12: Currency Hedge Policy
CURRENCY HEDGE POLICY 12 IN $ BILLION Net Exposure ● Forward Sales as of Sep. 2017 ● Collars as of Sep. 2017 ● Forward Sales and Collars as of Sep. 2016 3.8 4.6 19.2 1.7 25.1 21.3 16.8 12.9 6.1 Average hedge rates 2017 2018 2019 2020 2021 remaining 3 months and beyond 1.25 1.25 1.24 1.22 1.22 € vs $
Slide 13: 9M 2017 Cash Evolution
9M 2017 CASH EVOLUTION 13 IN € BILLION +1.9 +0.6 -4.5 -1.2 -1.0 -0.1 11.1 Free Cash Flow before M&A: € - 3.8 bn t/o Customer Financing: € - 0.4 bn Free Cash Flow before M&A and 6.7 Customer Financing € - 3.3 bn Net Cash Gross Cash Flow Change in Cash used for M&A Shareholder Pensions & Net Cash posi
Slide 14: 2017 Guidance
2017 GUIDANCE 14 As the basis for its 2017 guidance, Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions Airbus 2017 earnings and FCF guidance is based on a constant perimeter Airbus expects to deliver more than 70
Slide 15: Wrap-Up
WRAP-UP 15 9m performance on track, affected by engine issues Ramp-up prepared and committed by engine manufacturers for Q4 Guidance Confirmed Shaping the future Focused on EPS / FCF growth
Slide 16: Driving Earnings and Cash Performance
DRIVING EARNINGS AND CASH PERFORMANCE 16 EPS Growth FCF Growth End of End of decade decade Boost EPS Growth Performance A350 A400M* Turning Profitable A320 Capex Volume and Price Reduction FX Working capital Hedging Impact Control End End 2017 2017 * A400M will continue to weigh significantly in 201
Slide 17: Increasing Shareholder Returns
INCREASING SHAREHOLDER RETURNS 17 Total Shareholder Returns* ~ € 7 bn 2.4 FCF 1.7 in € bn € 8.4 bn 1.2 1.0 0.6 2.8 3.2 0.4 2.0 1.2 in € bn 2012 2013 2014 2015 2016 2017 ** Dividend Share Buyback (0.8) Dividend per Share 2012 2013 2014 2015 2016 1.35** 1.30 1.20 FCF FCF before M&A, before customer fi