Slide 1: H1 2004 Earnings: Accelerating Growth
H1 2004 Earnings : Accelerating Growth Hans Peter Ring, CFO Earnings conference call – July 29, 2004 1 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 ba
Slide 2: Strong Performance and Market Recovery
Content 1. Group overview 2. Operating performance by division 3. Financials 4. Roadmap 3 Strong Performance and Market Recovery … • Revenues +12% compared to H1 2003 • EBIT* margin increased to 6.8% (4.5% in H1 2003) due to Space turnaround and strong Airbus volume and mix; Defence businesses to po
Slide 3: … allow raising the 2004 targets
… allow raising the 2004 targets • EBIT* expected at € 2.1 bn • Revenues expected at ~ € 31 bn (previous guidance ~€ 29/30 bn)** • Free Cash Flow pre-customer Financing confirmed positive • Book-to-bill ratio confirmed above 1.0 * pre goodwill and exceptionals 5 ** based on an assumption of a 2004 a
Slide 4: Accelerating Globalization; H1 2004 Highlights: Strong Improvement
Accelerating Globalization Rationale for a US Largest growth Defence market Global Industrial Strategy Key civil market Long Term Market Access Russia Emerging civil market Technology cooperation Cost advantage Technology access Emerging market India Software development Natural
Slide 5: Airbus
Content 1. Group overview 2. Operating performance by division 3. Financials 4. Roadmap 9 Airbus €m H1 2004 H1 2003 • EBIT* margin reflects Deliveries exceptional mix and deliveries 161 149 Revenues 10,024 8,773 • Accounting impact from Airbus R&D self-financed 936 901 GIE merger included for € 59 m
Slide 6: Stable Airbus Customer Financing Exposure; MTA
Stable Airbus Customer Financing Exposure June 2004 Dec. 2003 Total Gross exposure 4,005€ m 3,822 € m of which off-balance sheet 732 € m 724 € m Estimated collateral value (2,286 €m) (2,229 € m) Net exposure before provision 1,719 €m 1,593 € m Provision (1,719 € m) (1,593 € m) Residual Airbus net ex
Slide 7: Aeronautics; Space
Aeronautics €m • Revenues and EBIT*: relative H1 2004 H1 2003 stability of all businesses; Revenues 1,631 1,613 second half expected to be R&D self-financed 34 34 higher as usual in % of revenues 2.1% 2.1% EBIT* 56 59 • Tiger currently acceptance in % of revenues 3.4% 3.7% process by the French Arme
Slide 8: Defence and Security Systems
Defence and Security Systems €m H1 2004 H1 2003 • Revenues +11% thanks to Revenues 2,119 1,902 missile and Eurofighter R&D self-financed 89 103 delivery ramp up in % of revenues 4.2% 5.4% EBIT* (82) (28) • EBIT* includes restructuring Order book charge for € 65 m mostly for 14,542 13,342 * pre goodw
Slide 9: Profit & Loss Highlights; Development of Net Cash
Profit & Loss Highlights H1 2004 H1 2003 in % of in % of €m Revenues €m Revenues Revenues 14,567 13,060 self-financed R&D 1,113 7.6% 1,076 8.2% EBITDA 1,780 12.2% 1,292 9.9% EBIT* 985 6.8% 592 4.5% EBIT* before R&D 2,098 14.4% 1,668 12.8% Interest result (102) (0.7%) (101) (0.8%) Other financial res
Slide 10: Hedge Policy is Continued
Hedge Policy is Continued Approx. half of EADS US$ revenues are naturally hedged by US$ procurement for 300 a/c deliveries a year the annual net exposure is $9bn - $10bn. EADS hedge portfolio (US$ 42.1 bn) on June, 30th 2004 at an average 1 € = 1.01 $ US$ bn 12 9.7 10 8.4 7.2 6.5 8 6 4.6 4.2 4 1.1 0
Slide 11: Outlook Update; Appendix
Outlook Update 2004 new targets display strong growth • EBIT* at € 2.1 bn • Revenues at € 31 bn (+3% from 2003) Medium-term earnings growth is accelerating 21 Appendix 22 11
Slide 12: Q2 2004 Key Figures; Balance Sheet Highlights
Q2 2004 Key Figures in € bn Q2 2004 Q2 2003 Revenues 8.5 € bn 7.5 € bn EBIT* 0.8 € bn 0.5 € bn FCF before cust. financing** (0.2 € bn) 0.6 € bn New orders 10.0 € bn 37.8 € bn * pre goodwill and exceptionals ** excl. investments in medium term securities and consolidation changes Revenues EBIT* Q2 20
Slide 13: EBIT* calculation; Restructuring, write-off and disposal items
EBIT* calculation in € m June 2004 June 2003 Income from operating activities 823 138 Income from investments ** 56 55 Exceptionals: Goodwill amortisation** 0 281 Fair value adjustment 106 118 EBIT* 985 592 * pre goodwill and exceptionals ** IAS3 applied from 2004: goodwill only reduced by impairmen
Slide 14: Net Cash Position; Net Income pre-exceptionals
Net Cash Position in m€ June 2004 Dec. 2003 Gross cash 7,902 7,872 Financial Debts* (5,019) (4,767) Reported Net cash 2,883 3,105 non-recourse debt 819 679 Net cash excl. non-recourse 3,702 3,784 Main minority impact* (79) 40 Airbus 20% non-recourse debt (164) (136) Net cash position net of 3,459 3,
Slide 15: A380 under production; Customer Financing Exposure
A380 under production Cumulative A380 R&D Self-financed R&D expensed by quarter in € m = 2.9 €bn 740 628 628 650 548 578 528 535 473 480 485 412 445 403 450 356 322 319 262 273 289 304 193 228 250 126 150 154 64 93 101 50 Q1 2 0 0 1 Q2 2 0 0 1 Q3 2 0 0 1 Q4 2 0 0 1 Q1 2 0 0 2 Q2 2 0 0 2 Q3 2 0 0 2 Q
Slide 16: Quarterly revenues and EBIT* breakdown
Quarterly revenues breakdown (cumulative) Q1 Q2 Q3 Q4 in €m 2004 2003 2004 2003 2004 2003 2004 2003 Airbus 4,126 3,775 10,024 8,773 12,051 19,048 MTA 101 96 234 268 410 934 Aeronautics 645 686 1,631 1,613 2,452 3,803 Space 457 403 1,090 1,008 1,473 2,424 DS 932 813 2,119 1,902 2,957 5,165 HQ & Elim.
Slide 17: Quarterly order-intake and order-book breakdown
Quarterly Order-intake breakdown (cumulative ) Q1 Q2 Q3 Q4 in €m 2004 2003 2004 2003 2004 2003 2004 2003 Airbus 1,068 3,416 6,158 33,174 37,028 39,904 MTA 100 122 165 20,104 20,195 20,326 Aeronautics 843 706 1,669 1,440 2,213 3,661 Space 238 341 3,905 779 1,246 6,062 DS 1,359 969 2,057 1,988 3,239 6