Slide 1: Q1 Results 2011
Q1 Results 2011 13 May 2011 Hans Peter Ring CFO
Slide 2: Safe Harbour Statement
2 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
Slide 3: Highlights
f Highlights Divisional Performance Guidance
Slide 4: Q1 Highlights
4 Q1 HIGHLIGHTS Airbus: benefiting from on-going strong commercial momentum; analysing further increase in Single Aisle production rates Eurocopter: keeping the course and seeing the first signs of recovery for civil orders Cassidian: transformation initiative underway as defence environment gets mo
Slide 5: Q1 2011 Financial Highlights
5 Q1 2011 Financial Highlights in € bn Q1 2011 Q1 2010 Change Revenues 9.9 9.0 +10% of which Defence 2.0 1.9 +1% EBIT* before one-off 0.23 0.15 +53% Order intake 6.3 14.4 -56% in € bn Mar. 2011 Dec. 2010 Change Total Order book** 422.4 448.5 -6% of which Defence 57.0 58.3 -2% Increase in EBIT* befor
Slide 6: Q1 2011 EBIT* Before One-off
6 Q1 2011 EBIT* Before One-off EADS Airbus Airbus in € bn Group Division Comm. EBIT* before one-off 2011 0.23 0.16 0.17 % Revenues 2.3% 2.3 % 2.5 % One-off impacts: $ PDP mismatch and balance sheet revaluation (0.04) (0.04) (0.04) EBIT* Reported 0.19 0.12 0.13 EADS - Q1 2011 earnings * Pre-goodwill
Slide 7: Q1 2011 Profit & Loss Highlights
7 Q1 2011 Profit & Loss Highlights Q1 2011 Q1 2010 in % of in % of €m Revenues €m Revenues EBIT* 192 1.9% 83 0.9% Self-financed R&D** 650 6.6% 572 6.4% EBIT* before R&D 842 8.5% 655 7.3% Interest result (47) (0.5%) (53) (0.6%) Other financial result (150) (1.5%) 130 1.5% Taxes 5 0.1% (47) (0.5%) Net
Slide 8: Currency Hedge Policy
8 Currency Hedge Policy Approximately 50% of EADS’ US$ revenues naturally hedged by US$ procurement; In Q1 2011, hedges of $ 4.2 bn* matured at an average hedge rate of € 1 = $ 1.37; In Q1 2011, new hedge contracts of $ 5.1 bn were added at an average rate of € 1= $ 1.35**. EADS hedge portfolio*, 31
Slide 9: Free Cash Flow
9 Free Cash Flow in € m Q1 2011 Q1 2010 Net cash position at the beginning of the period 11,918 9,797 Gross Cash Flow from Operations* 568 386 Change in working capital 112 (1,112) of which Customer Financing 101 (152) Cash used for investing activities** (371) (398) of which Industrial Capex (addit
Slide 10: Divisional Performance
Highlights Divisional Performance Guidance
Slide 11: Airbus Division
11 Airbus Division Airbus Division Airbus Commercial Airbus Military (after elimination) (excl. A400M) (Former MTAD, incl. A400M) in € m Q1 2011 Q1 2010 Q1 2011 Q1 2010 Q1 2011 Q1 2010 a) a) b) b) Deliveries 121 a/c 123 a/c 119 a/c 122 a/c 3 a/c 2 a/c Revenues 7,013 6,264 6,707 5,989 434 384 R&D sel
Slide 12: Airbus Division
12 Airbus Division Airbus Commercial (excl. A400M) Revenues +12% EBIT* before one-off ~ + 113% • Favourable mix effect: +3 LR, -4 SA, +1 A380 with • Favourable mix, pricing improvement net of escalation; revenue recognition; • Favourable cost phasing, mainly non-series; • Pricing improvement, net of
Slide 13: Eurocopter
13 Eurocopter in € m Q1 2011 Q1 2010 Overview • 99 new net orders booked, above the Q1 2010 level. Revenues 823 798 Cancellation trend slowing. First signs of recovery in the US R&D self-financed** 44 47 civil market. in % of revenues 5.3% 5.9% Revenues EBIT* 31 26 in % of revenues 3.8% 3.3% • 81 de
Slide 14: Astrium
14 Astrium in € m Q1 2011 Q1 2010 Revenues +27% : • Higher volume from launchers, positive contribution from Revenues 1,171 924 earth observation and telecommunication satellites. R&D self-financed 13 18 in % of revenues 1.1% 1.9% EBIT* +27% EBIT* 52 41 • Growth and productivity in launchers; in % o
Slide 15: Cassidian
15 Cassidian in € m Q1 2011 Q1 2010 Changing business environment • Defence budget pressure: Revenues 878 928 – Delayed order intake; high R&D expenses. R&D self-financed 53 57 • Preparation of transformation programme ongoing and in % of revenues 6.0% 6.1% development of global growth strategy, par
Slide 16: Other Businesses
16 Other Businesses in € m Q1 2011 Q1 2010 Revenues stable • LUH delivery ramp up and higher Sogerma revenues offset Revenues 246 246 lower ATR deliveries. R&D self-financed 2 1 in % of revenues 0.8% 0.4% EBIT* negative EBIT* (3) (1) • Lower ATR deliveries mitigated by the recovery in the jet in % o
Slide 17: Guidance
Highlights Divisional Performance Guidance
Slide 18: Guidance
18 Guidance 2011 guidance is based on €:$ 1.35 Airbus Orders & Deliveries: Airbus deliveries : 520 – 530 commercial aircraft; Book to bill > 1 Revenues: EADS revenues above the 2010 level EBIT* before one-off: EADS expects 2011 EADS EBIT* before one-off to remain stable compared to the 2010 level, a
Slide 19: Appendix
@MAIRBUS Q@AST ®CASSIDIAN @jJEUROCOPTER
Slide 20: Q1 2011 Forex EBIT* Impact Bridge
20 Q1 2011 Forex EBIT* Impact Bridge in € m Forex impact on EBIT* BRIDGE Deterioration of hedge rates (€: $ 1.32 to 1.37) (0.11) out of which Airbus (0.11) Other one-off forex effect including PDP reversal 0.03 Compared to Q1 2010 (0.08) out of which Airbus Division (0.08) EADS - Q1 2011 earnings *
Slide 21: Q1 2010 EBIT* Before One-off
21 Q1 2010 EBIT* Before One-off EADS Airbus Airbus in € bn Group Division Comm. EBIT* before one-off Q1 2010 0.15 0.08 0.08 % Revenues 1.7% 1.3% 1.3% One-off impacts: $ PDP reversal and balance sheet revaluation (0.07) (0.07) (0.07) EBIT* Reported 0.08 0.01 0.01 EADS - Q1 2011 earnings * Pre-goodwil
Slide 22: Q1 2011 Financial Highlights
22 Q1 2011 Financial Highlights Q1 2011 Q1 2010 in % of in % of €m Revenues €m Revenues Revenues 9,854 8,950 self-financed R&D** 650 6.6% 572 6.4% EBITDA* 589 6.0% 457 5.1% EBIT* 192 1.9% 83 0.9% EBIT* before R&D 842 8.5% 655 7.3% Net income (loss) (12) (0.1%) 103 1.2% EPS*** € (0.01) € 0.13 Net Cas
Slide 23: Shareholding structure
23 Shareholding structure Contractual Partnership Free float SOGEADE SEPI Daimler Lagardère incl. & Minor direct holdings: French French State: 0.06% State Treasury shares 0.40% 22.45% 5.47% 22.45%* 50.37% 49.63% as at 31st March 2011 * On 9 February 2007, Daimler reached an agreement with a consort
Slide 24: Expected EADS Average Hedge Rates € vs. $
24 Expected EADS Average Hedge Rates € vs. $ Average hedge rates € vs. $ 1.45 1.40 1.38 1.37 1.37 1.37 1.38 1.37 1.35 1.35 1.36 1.35 1.30 1.32 1.25 1.20 1.15 Q1 Q2 Q3 Q4 FY 2010 Average FY 2010 2011e Average FY 2011e EADS - Q1 2011 earnings
Slide 25: Airbus Customer Financing
25 Airbus Customer Financing Active exposure management $ bn Additions and Disposals Net Exposure fully 2.5 to Airbus customer financing gross exposure provisioned Additions Sell Down Amortisation 1.5 1.5 1.4 0.6 0.8 Gross Net 0.5 1.0 0.9 0.3 0.6 0.5 1.5 0.4 0.8 (0.1) Exposure (0.9) (0.7) (1.3) Expo
Slide 26: Customer Financing Exposure
26 Customer Financing Exposure 100% AIRBUS 50% ATR 100% EC in € m Mar. 2011 Dec. 2010 Mar. 2011 Dec. 2010 Mar. 2011 Dec. 2010 Closing rate € 1 = $ 1.42 $ 1.34 Total Gross exposure 1,064 1,266 101 115 89 89 of which off-balance sheet 283 333 43 46 48 48 Estimated value of collateral (591) (759) (92)
Slide 27: EBIT* Calculation
27 EBIT* Calculation in € m Q1 2011 Q1 2010 EBIT* 192 83 Exceptionals: Fair value depreciation (11) (10) Profit before finance cost 181 73 and income taxes EADS - Q1 2011 earnings * Pre-goodwill impairment and exceptionals
Slide 28: Net Income (loss) pre-exceptionals
28 Net Income (loss) pre-exceptionals in € m Q1 2011 Q1 2010 Net income (loss)* (4) 110 EPS* (1) €0 € 0.14 Exceptionals: Fair value adjustment (11) (10) Related tax impact 3 3 Net income (loss) (12) 103 EPS (1) € (0.01) € 0.13 * Pre-goodwill impairment and exceptionals; the term “exceptionals” refer
Slide 29: Net Cash Position
29 Net Cash Position in € m Mar. 2011 Dec. 2010 Gross cash 16,405 16,196 Financing Debts Short-term Financing Debts (1,346) (1,408) Long-term Financing Debts (2,887) (2,870) Reported Net cash 12,172 11,918 Airbus non-recourse debt 486 532 Net cash excl. non-recourse 12,658 12,450 EADS - Q1 2011 earn
Slide 30: EADS: Strong Liquidity Position as at 31 March 2011
30 EADS: Strong Liquidity Position as at 31 March 2011 Maturity 2012 € 3 bn Undrawn Fully committed by 32 banks Credit Facility No financial covenants No MAC clause € 4.2 bn EMTN progamme Long term rating : Financing Liabilities Moody’s: A1 (incl. € 1.5 bn liabilities of EMTN) S & P: A- € 16.4 bn To
Slide 31: Balance Sheet Highlights: Assets
31 Balance Sheet Highlights: Assets in € m Mar. 2011 Dec. 2010 Non-current Assets 41,620 41,197 of which Intangible & Goodwill 11,246 11,299 of which Property, plant & equipment 13,271 13,427 of which Investments & Financial assets 4,902 4,837 of which positive hedge mark-to-market 1,291 602 of whic
Slide 32: Balance Sheet Highlights: Liabilities
32 Balance Sheet Highlights: Liabilities in € m Mar. 2011 Dec. 2010 Total Equity 10,802 8,936 of which OCI (Other Comprehensive Income) 2,331 446 of which Non-controlling interests 95 95 Total Non-current liabilities 29,445 30,481 of which pensions 5,053 5,037 of which other provisions 3,034 3,176 o
Slide 33: Quarterly Revenues Breakdown (cumulative)
33 Quarterly Revenues Breakdown (cumulative) in € m Q1 H1 9m FY 2011 2010 2011 2010 2011 2010 2011 2010 Airbus Division 7,013 6,264 … 13,853 … 21,740 … 29,978 Thereof Airbus Comm.* 6,707 5,989 ... 12,965 ... 20,446 ... 27,673 Thereof Airbus Military 434 384 ... 1,007 ... 1,540 ... 2,684 Eurocopter 8
Slide 34: Quarterly EBIT* Breakdown (cumulative)
34 Quarterly EBIT* Breakdown (cumulative) in € m Q1 H1 9m FY 2011 2010 2011 2010 2011 2010 2011 2010 Airbus Division 115 7 … 104 … 296 … 305 Thereof Airbus Comm.** 125 6 … 241 … 328 … 291 Thereof Airbus Military 1 1 … (161) … (35) … 21 Eurocopter 31 26 … 71 … 121 … 183 Astrium 52 41 … 106 … 158 … 28
Slide 35: Quarterly Order intake Breakdown (cumulative)
35 Quarterly Order intake Breakdown (cumulative) in € m Q1 H1 9m FY 2011 2010 2011 2010 2011 2010 2011 2010 Airbus Division 3,748 11,158 … 24,542 … 47,949 … 68,223 Thereof Airbus Comm.* 3,647 11,035 … 24,302 … 47,384 … 68,210 Thereof Airbus Military 105 146 … 285 … 626 … 152 Eurocopter 779 1,057 … 1
Slide 36: Quarterly Order book Breakdown (cumulative)
36 Quarterly Order book Breakdown (cumulative) in € m Q1 H1 9m FY 2011 2010 2011 2010 2011 2010 2011 2010 Airbus Division 374,891 366,051 … 405,027 … 377,325 … 400,400 Thereof Airbus Comm.* 353,574 346,182 … 385,677 … 358,110 … 378,907 Thereof Airbus Military 22,487 21,155 … 20,773 … 20,586 … 22,819