Slide 1: H1 2003 Results
H1 2003 Results Rainer Hertrich, CEO Hans Peter Ring, CFO Press conference – July 28, 2003 - London 2 2
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain of the statements contained in this document 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 the dat
Slide 3: EADS at home in the UK market
EADS at home in the UK market · FY 2002 revenues in UK : € 2.5 bn the 3rd largest EADS market · € 17.3 bn order book at June 2003 · Over €3.1 bn spent with UK suppliers in 2002 (12.3% of total) · 13,000 employees at June 2003 (12.1% of total) · € 1.1 bn recently invested in UK Airbus plants (Brought
Slide 4: EADS Growing in the UK
EADS Growing in the UK · Fast growth secured by existing firm orderbook – MBDA: Meteor, Storm Shadow – A400M (€ 2.5 bn UK share) – EasyJet order : 120 A319 · Winning key programmes, competing for future orders – Prime Contractor capability: Skynet 5 – System integrator: GBAD – AirTanker (FSTA) 5 5
Slide 5: Content
Content 1. Group overview 2. Operating performance by division 3. Financials 6 6
Slide 6: EADS has Laid Solid Groundwork for Tomorrow
EADS has Laid Solid Groundwork for Tomorrow Airbus: - 199 gross orders = 66 % market share (net order value) - 129 firm orders and commitments for A380 - order-book: 1531 commercial ac - 2003 target of 300 deliveries on-track (149 delivered) Defence: - A400M €20bn contract signed - Eurofighter forma
Slide 7: EADS Pursues Further Growth Opportunities
EADS Pursues Further Growth Opportunities Airbus: - On-going campaigns for civil customers Defence: - FSTA UK MoD bid offer - A400M export opportunities - EADS short-listed by UK MoD for GBAD System - Preferred bidder for Herkules in Germany - Deepwater further orders expected - Eurofighter: Domesti
Slide 8: H1 2003 EBIT: Defence businesses improvement partly offsets Airbus and Space decrease
H1 2003 EBIT: Defence businesses improvement partly offsets Airbus and Space decrease • Airbus affected by R&D and volume on H1 … expected to catch up over the year with better mix • Space losses heavier in H1 2003 and restructuring will continue to weigh more on FY2003 • Defence and para-public bus
Slide 9: H1 2003 Financial Highlights
H1 2003 Financial Highlights in m€ H1 2003 H1 2002 Revenues 13,060 € m 13,974 € m EBIT* 592 € m 775 € m FCF before cust. financing** 305 € m 221 € m New orders 43,190 € m 14,791 € m June December in bn€ 2003 2002 Net Cash position 0.9 € bn 1.2 € bn Total Order book 187.7 € bn 168.3 € bn of which Def
Slide 10: Content
Content 1. Group Overview 2. Operating Performance by Division 3. Financials 11 11
Slide 11: Airbus
Airbus €m H1 2003 H1 2002 Deliveries 149 160 • Stable EBIT pre-R&D at €1.5 bn despite lower deliveries Revenues 8,773 9,870 R&D self-financed 901 680 • Revenues impacted by in % of revenues 10.3% 6.9% weaker $ and lower deliveries EBIT* (Revenue recognition based on 146 621 874 in % of revenues 7.1%
Slide 12: Customer Financing Exposure Under Control
Customer Financing Exposure Under Control all figures in € m Figures for 100% Airbus June 2003 Dec. 2002 closing rate $/€ 1.14 1.05 Total Gross exposure* 3,511 3,581 of which off-balance sheet 811 891 Estimate value of collateral (2,022) (2,062) Net exposure 1,489 1,519 Provision (1,489) (1,519) AIR
Slide 13: MTA
MTA €m H1 2003 H1 2002 Revenues • A400M revenues expected 268 234 to start from Q3 2003 R&D self-financed 11 22 in % of revenues 4.1% 9.4% • Revenue growth driven EBIT* (8) (72) ** by military derivatives in % of revenues • EBIT improvement Order book 20,476 1,283 expected on second half * pre goodw
Slide 14: Aeronautics
Aeronautics (new format : excl. Military aircraft) H1 2002 • Military Aircraft BU €m (Eurofighter, Tornado,… H1 2003 Pro-forma businesses) transferred to DS Revenues 1,613 1,606 (Defence and Security R&D self-financed 34 52 Systems) in % of revenues 2.1% 3.2% EBIT* • Eurocopter: Preparation of 59 29
Slide 15: Space
Space (Astrium 100% consolidated from January 2003) • Revenues nearly stable €m H1 2003 H1 2002 excluding Astrium consolidation change Revenues 1,008 882 • Restructuring under-way; R&D self-financed 27 24 target EBIT breakeven in 04 in % of revenues 2.7% 2.7% • EBIT line hit : EBIT* (131) (85) • fir
Slide 16: Defence and Security Systems
Defence and Security Systems (New format : incl. Military Aircraft) H1 2002 • DS new organisation €m H1 2003 Pro-forma • EADS Telecom 100% held Revenues 1,902 1,856 since July R&D self-financed 103 99 • H1 2003 EBIT incl. €17m in % of revenues 5.4% 5.3% restructuring charge EBIT* (28) (37) • Eurofig
Slide 17: Content
Content 1. Group overview 2. Operating performance by division 3. Financials 18 18
Slide 18: Profit & Loss Highlights
Profit & Loss Highlights H1 2003 H1 2002 in % of in % of €m Revenues €m Revenues Revenues 13,060 13,974 self-financed R&D 1,076 8.2% 876 6.3% EBITDA* 1,292 9.9% 1,501 10.7% EBIT* 592 4.5% 775 5.5% EBIT* before R&D 1,668 12.8% 1,651 11.8% Interest result (101) (0.8%) (58) (0.4%) Taxes (151) (1.2%) (2
Slide 19: Development of Net Cash
Development of Net Cash in € m H1 2003 H1 2002 Net cash at the beginning of the period 1,224 1,533 Gross Cash Flow from Operations* 848 1,022 Change in working capital 425 (53) Cash used for investing activities** (1,312) (1,019) of which Industrial Capex (additions)*** (823) (855) of which Customer
Slide 20: Continuing the Active Hedging Policy
Continuing the Active Hedging Policy EADS hedge portfolio (US$ 40 bn) as of June 30, 2003 US$ bn Volume already hedged 10 8.8 8 6.8 6.3 5.7 5.3 6 4.3 4 1.7 2 0.8 0 2003 2004 2005 2006 2007 2008 2009 2010 (6 mths) € vs $ 0.95 0.94 0.95 0.96 0.97 0.95 0.95 1.01 £ vs $ 1.56 1.53 1.47 1.48 1.47 1.47 1.4
Slide 21: Position EADS for the Market upturn
Position EADS for the Market upturn · Confirm 2003 Targets ü 300 deliveries; Revenues in same range as 2002, based on 1€ = 1.10 $ ü EBIT* in same range as 2002 ü Free Cash Flow positive pre-customer financing ü Restrictive customer financing · Resist to the current downturn and monitor markets evolu