Slide 1: Annual General Meeting, Amsterdam
Amsterdam May 11%, 2005 Annual General Meeting é. um
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: Content
Content 2000 Ê 2004: The Step Beyond 2004 Results and 2005 Outlook Roadmap 3
Slide 4: 2000-2004: EADS – The Step Beyond
2000 Ê 2004 : EADS – The Step Beyond 9 Beyond Borders: Successfully evolved from tri-national concern to global industrial Group 9 Beyond the Standard: Overcame cross-border challenges to forge unique and socially responsible human resources model 9 Beyond Limits: Created leading- edge portfolio of
Slide 5: 2000-2004: Beyond Limits
2000 Ê 2004: Beyond Limits Captured new businesses Platform based systems Military Milit. derivatives Versionen •Tanker, MRTT • Airbus • Tanker, MRTT •Transporter • Eurocopter • Transport • Military Transport Aircraft FSTA AustralianTanker A400M • EADS Military Aircraft LeadIntegration system von •
Slide 6: 2000-2004: Beyond Limits – Key Programme Breakthroughs
2000 Ê 2004 : Beyond Limits Key Programme Breakthroughs 18 january 2005: A380 reveal 9 Dec 2003: January/ April 2004: 19 Dec 2000: 8 April 2002: A310 MRTT Australia/ UK Pick A380 launched Eurofighter 27 May 2003: Rollout A330 MRTT Maiden Flight A400M Launch 10 Dec 2004: A350 ATO EADS Creation: 2001
Slide 7: Strong EBIT and Cash improvement
2000 Ê 2004 : Beyond Expectations Strong EBIT* and Cash improvement EBIT* in € bn 75 % 2.4 + 1.7 1.4 1.5 1.4 Net cash position in € bn 2000 2001 2002 2003 2004 3 4 % 4.1 + 3.0 3.1 2.7 2.4 2000 2001 2002 2003 2004 * pre goodwill and exceptionals 7 ** 2000 Net cash position restated to be comparable w
Slide 8: Defence development
2000 Ê 2004 : Beyond Expectations Defence development In a flat EU Defence Procurement …strong Defence order-book environment, EADS achieved …. expansion, comforting revenue growth Order-book in € bn of which Defence Revenues in € bn 183 179 184 168 31.8 ~33.0 30.8 29.9 30.1 132 24.2 45 49 ~10.0 7.7
Slide 9: Space turnaround
2000 Ê 2004 : Beyond Expectations Space turnaround In a gloomy market, Space division … and strong order-book supports was reorganised for EBIT* margin business growth expansion…. Space EBIT* in € millions Space order-book and revenues in € bn 11.3 67 10 7.9 -222 4.8 -268 3.9 3.8 2.5 2.4 2.2 2.4 2.6
Slide 10: Airbus solid performance
2000 Ê 2004 : Beyond Expectations Airbus solid performance Airbus strong margin despite R&D … and leadership to benefit effort and downturn …. from market upturn Airbus margin pre-R&D Airbus EBIT* margin 18.1% > 350 16.7% 15.7% 15.2% 15.6% Airbus deliveries 9.5% 9.5% 325 8.1% 320 7.0% 7.1% 311 305 3
Slide 11: Exceeded financial targets
2000 Ê 2004 : Beyond Expectations Exceeded financial targets ….and achieved EADS promised… 2004 Book-to-bill over one 9 1.4 EBIT* of 2.2 €bn 9 € 2.4 bn Revenues ~ 32€bn (@ € =1.23$ **) 9 € 31.8 bn (@ €=1.24$**) 9 € 1.8 bn FCF pre-customer fin. >0 Book-to-bill over one 9 >2.0 2003 EBIT* ~ stable from
Slide 12: Building Financial Momentum
2000 Ê 2004 : Beyond Expectations Building Financial Momentum Data as of 6 may 2005 2001 2002 2003 2004 2005 170 150 Base 100 : 10 juillet 2000 130 EADS 110 BOEING 90 THALES 70 CAC 40 50 BAE Systems 30 10 J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J
Slide 13: Distributing the Fruits
Distributing the Fruits Gross dividend in EUR per share 0.50 0.50 0.50 0.40 0.30 2000 2001 2002 2003 2004* Dividend Yield (1) 2.4% 2.6% 2.1% 3.3% 2.4% Pay-out (2) n.s. n.s. 113% 50% 39% (1) Computed on year average stock price (2) Computed on EPS in compliance with IFRS3 (goodwill no longer amortise
Slide 14: Content
Content 2000 Ê 2004: The Step Beyond 2004 Results and 2005 Outlook Roadmap 14
Slide 15: Airbus
Airbus €m FY 2004 FY 2003 • EBIT* margin at 9.5%. Deliveries 320 305 • EBIT* up 42% : Revenues • Higher deliveries and 20,224 19,048 favourable mix R&D self-financed** 1,734 1,819 in % of revenues 8.6% 9.5% • Route 06 program: initial savings • Hedges less favourable EBIT* 1,922 1,353 in % of revenu
Slide 16: MTA
MTA €m FY 2004 FY 2003 • Revenues +40%, driven by A400M: further milestone passed in Q4 2004 Revenues 1,304 934 R&D self-financed 26 23 • EBIT* driven by: in % of revenues 2.0% 2.5% • Low initial profit recognition of A400M EBIT* 26 30 • Early retirement charge in % of revenues 2.0% 3.2% • FSTA pre-
Slide 17: Aeronautics
Aeronautics €m FY 2004 FY 2003 • Revenues and EBIT*: Revenues 3,876 3,803 • Eurocopter improvement R&D self-financed 68 62 • Sogerma degradation in % of revenues 1.8% 1.6% • Negative impact from $ weakness EBIT* 206 217 in % of revenues 5.3% 5.7% • Eurocopter: Military and homeland Order book busine
Slide 18: Space
Space • EBIT*: profit achieved €m FY 2004 FY 2003 set to grow Revenues 2,592 2,424 • Ariane 5 ECA: Successful launch R&D self-financed 61 62 flight of 10t version, Feb.12, 2005. in % of revenues 2.4% 2.6% EBIT* 10 (400) • Paradigm driver of revenue growth; Order book 11,311 7,888 third party contrac
Slide 19: Defence and Security Systems
Defence and Security Systems • Revenues up 4%: driven by €m FY 2004 FY 2003 MBDA Revenues 5,385 5,165 • EBIT* driven by : R&D self-financed 185 223 • Performance improvement in % of revenues 3.4% 4.3% • Restructuring mainly for DCS EBIT* 228 171 • Litigation provision release: €106m in % of revenues
Slide 20: Profit & Loss Highlights
Profit & Loss Highlights FY 2004 FY 2003 in % of in % of €m Revenues €m Revenues Revenues 31,761 30,133 self-financed R&D*** 2,126 6.7% 2,189 7.3% EBITDA 3,853 12.1% 3,137 10.4% EBIT* 2,444 7.7% 1,543 5.1% EBIT* before R&D 4,570 14.4% 3,732 12.4% Interest result (275) (0.9%) (203) (0.7%) Other finan
Slide 21: Development of Net Cash
Development of Net Cash in € m FY 2004 FY 2003 Net cash position at the beginning of the period 3,105 2,370 Gross Cash Flow from Operations* 2,858 2,690 Change in working capital 2,155 2,019 Cash used for investing activities** (3,399) (3,659) of which Industrial Capex (additions) (3,017) (2,672) of
Slide 22: Hedge Policy
Hedge Policy Approx. half of EADS US$ revenues are naturally hedged by US$ procurement Æ In 2004 the annual net exposure was around $ 11bn (including $ 9 bn for Airbus). . EADS hedge portfolio (US$ 40.2 bn) on Dec., 31st 2004 average rate 1 € = 1.03 $ US$ bn 10.9 8.7 7.2 6.7 5.0 1.3 0.4 2005 2006 20
Slide 23: 2005 Guidance
2005 Guidance Revenues in € bn EBIT* in € bn EBIT* in % of revenues 7.9% 7.7% 33 >2.6 € vs $ 30.8 31.8 5.8% 5.5% 29.9 30.1 0.92 4.8% 5.1% 2.4 0.90 1.7 1.5 24.2 0.95 1.4 1.4 1.13 1.24 ~1.30 Target Target 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 2005 other targets • Airbus Deliverie
Slide 24: Q1 2005 Financial Highlights
Q1 2005 Financial Highlights in m€ Q1 2005 Q1 2004 change Revenues 7,005 € m 6,031 € m +16% Of which Defence 1,258 € m 1,083 € m +16 % EBIT* 657 € m 198 € m +232 % FCF before cust. financing** 704 € m 419 € m 68 % Net Income 328 € m 49 € m +569 % New orders 8,907 € m 3,411 € m + 161 % in bn€ March 2
Slide 25: Content
Content 2000 Ê 2004: The Step Beyond 2004 Results and 2005 Outlook Roadmap 25
Slide 26: Commercial Aviation: Sustain Leadership
Commercial Aviation: Sustain Leadership 100% manufacturers' shares - %orders 90% 80% EC145 70% Boeing 60% 59% 43% AS365N3 50% 50% MDD 40% 57% 30% 22% 20% AIRBUS 10% 19% A350 0% 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 A380 Leadership in deliveries, orders and innovation How to Sustai
Slide 27: US$ weakening: Ensure competitiveness
US$ weakening: Ensure competitiveness € versus US $ 1.3 1.2 1.1 1.0 0.9 0.8 0.7 1999 2000 2001 2002 2003 2004 2005 Hedged orderbook net exposure How to maintain competitiveness? Cost savings Suppliers network 27
Slide 28: Defence: Sustain Long-term Development
Defence : Sustain Long-term Development EADS defence revenues in € million A310/A330 Air Tanker - MRTT Skynet 5 10,000 8,500 7,098 7,695 6,100 6,040 UAV 2001 2002 2003 2004 2005 e2006/07 NH90 Tripled order-book, Set to reach € 10 bn revenues How develop further? Extend product range Expand outside E
Slide 29: Space: Sustain long-term development
Space : Sustain long-term development Expanded in Services (Paradigm), Turned-around for profitable growth How to go beyond? Get commitment from the European Governments New Space applications 29
Slide 30: Continuing Transformation
Continuing Transformation Russia Japan USA South Korea China India Australia Solid and Growing How expand further? Global Industrial Strategy Innovation People 30
Slide 31: Shareholders Information
Shareholders Information For questions or further information please call: France: 0 800 01 2001 Germany: 00 800 00 02 2002 Spain: 00 800 00 02 2002 E-mail: ir@eads.com To receive “Aero - Notes”, the letter to our shareholders, and other documents, visit our website at www.eads.com and go to Investo
Slide 32: Appendix
Appendix EADS 32
Slide 33: Q4 2004 Key Figures
Q4 2004 Key Figures in € bn Q4 2004 Q4 2003 Revenues 10.3 11.6 EBIT* 0.9 0.8 FCF before cust. financing** 1.7 2.2 New orders 23.5 11.7 * pre goodwill and exceptionals ** excl. investments in medium term securities and consolidation changes Revenues EBIT* Q4 2004 change Q4 2004 Q4 2003 Airbus 5.8 € b
Slide 34: Balance Sheet Highlights
Balance Sheet Highlights in € m Dec. 2004 Dec. 2003 Assets 58,267 54,378 of which Goodwill 9,460 9,372 of which cash & equivalents, securities 9,184 7,872 of which positive hedge mark-to-market 8,948 7,964 Stockholders' equity 16,973 16,149 of which OCI (Other Comprehensive Income) 6,086 5,934 Minor
Slide 35: EBIT* Calculation
EBIT* Calculation in € m Dec. 2004 Dec. 2003 Income from operating activities 2,143 561 Income from investments 84 186 Exceptionals: Goodwill amortisation** 0 567 Fair value adjustment 217 229 EBIT* 2,444 1,543 * pre goodwill and exceptionals ** IFRS3 applied from 2004: goodwill only reduced by impa
Slide 36: Restructuring, write-off and disposal items included in EBIT*
Restructuring, write-off and disposal items included in EBIT* €m FY 2004 FY 2003 EBIT* 2,444 1,543 EBIT* margin (% of revenues) 7.7% 5.1% EADS EBIT* includes the following items MTA Restructuring (28) (17) Aeronautics Restructuring (Sogerma) (13) (7) Space Restructuring 0 (288) Asset Depreciation 0
Slide 37: Net Cash Position
Net Cash Position in m€ Dec. 2004 Dec. 2003 Gross cash 9,184 7,872 Financial Debts (5,126) (4,767) Reported Net cash 4,058 3,105 non-recourse debt 988 679 Net cash excl. non-recourse 5,046 3,784 Main minority impact* (201) 40 Airbus 20% non-recourse debt (198) (136) Net cash position net of 4,647 3,
Slide 38: Net Income pre-exceptionals
Net Income pre-exceptionals in € m Dec. 2004 Dec. 2003 Net Income 1,030 644** EPS (based on Net Income) 1.29 € 0.80 € Exceptionals: Fair value adjustment on fixed assets 212 214 Fair value adjustment on inventories 5 15 Tax impact on exceptional fair value (78) (83) Minorities on exceptional fair va
Slide 39: A380: Four Aircrafts Assembled in 2004
A380: Four Aircrafts Assembled in 2004 Self-financed R&D charged in P&L by year in EUR m 2,096 2,189 2,126 1,841 Cumulative A380 R&D 1,082 983 819 = 3.3 €bn 384 FY2001 FY 2002 FY2003 FY 2004 A380 R&D EADS total R&D 3,017 Capex by year in EUR m 2,213 2,672 Cumulative A380 Capex 1,592 1,324 = 3.7 €bn
Slide 40: Airbus Customer Financing Reduced in 2004
Airbus Customer Financing Reduced in 2004 Active exposure management Additions and Disposals to Airbus customer financing gross exposure in $ bn Net Exposure fully Additions Sell Down Amortization provisioned 1.5 1.5 1.2 1.4 1.0 0.6 0.5 -0.2 -0.7 -0.7 -0.7 Net -0.2 -0.9 -0.2 -0.3 -1.0 Gross Exposure
Slide 41: Customer Financing Exposure
Customer Financing Exposure all figures in € m Figures for 100% Airbus 2004 2003 closing rate € - $ 1.36 1.26 Total Gross exposure* 3,348 3,822 of which off-balance sheet 604 724 Estimate value of collateral (1,916) (2,229) Net exposure 1,432 1,593 Provision and deferred margin (1,432) (1,593) AIRBU
Slide 42: Quarterly Revenues Breakdown (cumulative)
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 14,415 12,051 20,224 19,048 MTA 101 96 234 268 539 410 1,304 934 Aeronautics 645 686 1,631 1,613 2,516 2,452 3,876 3,803 Space 457 403 1,090 1,008 1,646 1,473 2,592 2,4
Slide 43: Quarterly EBIT* Breakdown (cumulative)
Quarterly EBIT* Breakdown (cumulative) Q1 Q2 Q3 Q4 in €m 2004 2003 2004 2003 2004 2003 2004 2003 Airbus 224 166 982 621 1,382 701 1,922 1,353 MTA (8) (11) (10) (8) 5 (7) 26 30 Aeronautics 10 16 56 59 116 112 206 217 Space (11) (21) (11) (131) (5) (184) 10 (400) DS (51) (54) (82) (28) (75) (18) 228 1
Slide 44: Quarterly Order-intake Breakdown (cumulative)
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 10,547 37,028 25,816 39,904 MTA 100 122 165 20,104 342 20,195 1,176 20,326 Aeronautics 843 706 1,669 1,440 3,168 2,213 4,339 3,661 Space 238 341 3,905 779 4,289 1,
Slide 45: Quarterly Order-book Breakdown
Quarterly Order-book Breakdown Q1 Q2 Q3 Q4 in €m 2004 2003 2004 2003 2004 2003 2004 2003 Airbus 140,911 134,615 139,655 154,428 138,747 153,302 136,022 141,836 MTA 19,980 677 19,904 20,476 19,738 20,429 19,897 20,007 Aeronautics 10,021 10,193 9,991 9,828 10,656 9,719 10,171 9,818 Space 8,083 4,401 1