Airbus Se · EURONEXT:AIR
Airbus — Airbus Se Ord — Q1 2020 Earnings Presentation
33 slides from Airbus's earnings presentation, Apr 29, 2020
Slide 1: Q1 2020 Results
29 April 2020 Guillaume FAURY | Chief Executive Officer Dominik ASAM | Chief Financial Officer
Slide 2: Safe Harbour Statement
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 s
Slide 3: Company Highlights
Company Business Key Highlights Highlights Priorities
Slide 4: Q1 2020 Key Topics
Q1 2020 Key Topics 4 Market environment strongly impacted by COVID-19 situation, particularly in commercial aircraft Q1 2020 financials partially impacted by COVID-19 EBIT Adjusted € 0.3 bn FCF before M&A and CF € - 8.0 bn / € - 4.4 bn before the payment of € - 3.6 bn penalties Strong focu
Slide 5: Q1 2020 Commercial Positioning
Q1 2020 Commercial Positioning 5 Consolidated Airbus Order Book Consolidated Airbus by Division External Revenue by Division Q1 2020 Q1 2019 Change Airbus 70% Order Intake 290 (58) N/A Airbus (net) Helicopters 10% (in units) Order Book 7,650 7,357 4.0% € 10.6 bn Defence and Space 20% Order Intake 54
Slide 6: Q1 2020 Financial Performance
Q1 2020 Financial Performance 6 Revenues EBIT Adjusted in € bn in € bn / RoS (%) 4.4% 12.5 2.6% 10.6 0.55 0.28 Q1 2019 Q1 2020 Q1 2019 Q1 2020 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn Q1 2019 Q1 2020 (4.4) 0.47 0.23 (4.3) Penalty (3.6) Payment Q1 2019 Q1 2020 (8.0) (1) Q1 2
Slide 7: Q1 2020 Profitability
Q1 2020 Profitability 7 EBIT Performance Q1 2020 EBIT Reported of € 79 m in € bn Q1 2020 EBIT Adjustments resulting from: € - 33 m A380 programme cost € - 134 m PDP mismatch / BS revaluation 0.55 € - 35 m Others 0.28 0.18 0.08 Q1 2020 Net Adjustments of € - 202 m EBIT Adjusted EBIT Repor
Slide 8: Currency Hedge Policy
Currency Hedge Policy 8 IN $ BILLION Forward Sales as of Mar. 2020 5.1 Forward Sales and Collars as of Dec. 2019 23.7 19.9 21.2 15.3 13.9 Average hedge rates 2020 2021 2022 2023 2024 remaining 9 months and beyond € vs $ 1.19 1.21 1.23 1.24 1.27 Forwards/Collars (2) ( 1.20 in Dec. 19 ) ( 1.23 in Dec.
Slide 9: Q1 2020 Cash Evolution
Q1 2020 Cash Evolution 9 IN € BILLION +0.3 -3.6 -4.2 12.5 -0.5 -0.5 -0.4 Free Cash Flow before M&A: € - 8.0 bn t/o Customer Financing € 0.0 bn Free Cash Flow before M&A and 3.6 Customer Financing € - 8.0 bn Net Cash Position Gross Cash Penalties Change in Cash used for investing M&A (2) Pensions & O
Slide 10: Business Highlights
Company Business Key Highlights Highlights Priorities
Slide 11: Airbus
11 Q1 2019 IN € MILLION Q1 2020 Change Deliveries by Programme (Units) Restated(1) Order Intake (net) 290 (58) N/A Units Order Book 7,650 7,357 4.0% A220 7% A320 79% Deliveries Units 122 162 -24.7% A330 3% Revenues 7,569 9,697 -21.9% A350 11% R&D Expenses 543 527 A380 0% 3.0% in % of Revenues 7.2% 5
Slide 12: Helicopters
Helicopters 12 IN € MILLION Q1 2020 Q1 2019 Change External Revenue Split Order Intake (net) 54 66 -18.2% Units Order Book 702 737 -4.7% Civil 48% Defence 52% Deliveries Units 47 46 2.2% Revenues 1,202 1,007 19.4% R&D Expenses 75 69 8.7% in % of Revenues 6.2% 6.9% EBIT Adjusted 53 15 253.3% in % of
Slide 13: Defence and Space
Defence and Space 13 IN € MILLION Q1 2020 Q1 2019 Change External Revenue Split Order Intake (net) 1,734 1,074 61.4% Value Order Book 31,921 34,074 -6.3% Platforms 65% Services 35% Revenues 2,111 2,112 0% R&D Expenses 51 61 -16.4% in % of Revenues 2.4% 2.9% EBIT Adjusted 15 101 -85.1% in % of Revenu
Slide 14: Key Priorities
Company Business Key Highlights Highlights Priorities
Slide 15: Key Priorities
Key Priorities 15 Focus on short-term cash containment and longer-term cost structure across all businesses Secure deliveries and manage backlog Synchronise demand, supply and production Preserve ability to run operations in a safe environment Focus on our resilience as a company
Slide 16: Appendix
AIRBUS patie Q1 Results 2020 AIRBUS
Slide 17: Expected Airbus Average Hedge Rates € vs. $
Expected Airbus Average Hedge Rates € vs. $ 17 Active exposure management 1.34 Average Hedge Rates 1.32 1.32 1.30 FY 2019 1.24 1.28 FY 2020E 1.19 1.26 1.24 1.22 1.23 1.21 1.23 1.20 1.21 (1) 1.19 1.20 1.18 1.16 1.16 1.14 Q1 Q2 Q3 Q4 2020E 2019 (1) Q1 actual
Slide 18: Q1 2020 Detailed Income Statement and Adjustments
Q1 2020 Detailed Income Statement and Adjustments 18 thereof Adjustments Impact on EBIT Q1 2020 Financial Q1 2020 IN € MILLION Operational FX Reported Result Adjusted Defence Airbus + Defence Airbus Helicopters and Space(1) and Space(2) EBIT 79 281 (65) (3) (134) in % of Revenues 0.7% 2.6% Interest
Slide 19: Q1 2019 Detailed Income Statement and Adjustments
Q1 2019 Detailed Income Statement and Adjustments 19 thereof Adjustments Impact on EBIT Q1 2019 Financial Q1 2019 IN € MILLION Operational FX Reported Result Adjusted Defence Airbus + Defence Airbus Helicopters and Space(1) and Space(2) EBIT 181 549 (87) (192) (6) (83) in % of Revenues 1.4% 4.4% Int
Slide 20: Q1 2020 Key Figures
Q1 2020 Key Figures 20 IN € MILLION Q1 2020 Q1 2019 Revenues 10,631 12,549 EBIT Adjusted 281 549 EBIT 79 181 Net Income (Loss) (481) 40 FCF before M&A (7,999) (4,393) FCF before M&A and Customer Financing (8,030) (4,341) Q1 2019 Q1 2019 Q1 2019 IN € MILLION Q1 2020 Q1 2020 Q1 2020 Restated(1) Restat
Slide 21: Airbus: Strong Liquidity Position as of 31 March 2020
Airbus: Strong Liquidity Position as of 31 March 2020 21 SLL: € 15.0 bn Signed March 31st with 9 Banks Maturity: 12m+6m+6m (from signing day) Supplemental Liquidity Line (SLL) RSCF: Maturity 2021, undrawn € 3.0 bn – Credit Facility (RSCF) Fully committed by 40 banks No financial covenants,
Slide 22: Detailed Free Cash Flow
Detailed Free Cash Flow 22 IN € MILLION Q1 2020 Q1 2019 Net Cash position at the beginning of the period 12,534 13,281 First time impact of IFRS 16 - (1,352) (1) Gross Cash Flow from Operations 256 725 (2) Change in working capital (7,778) (4,703) (3) Cash used for investing activities (979) (470) (
Slide 23: Net Cash Position
Net Cash Position 23 IN € MILLION Mar. 2020 Dec. 2019 Gross Cash 18,403 22,682 Financing Liabilities (14,817) (10,148) Short-term Financing Liabilities (6,397) (1,959) Long-term Financing Liabilities (8,420) (8,189) Reported Net Cash 3,586 12,534 Airbus non-recourse debt 25 24 Net Cash excl. non-rec
Slide 24: Customer Financing Exposure
Customer Financing Exposure 24 IN € MILLION Mar. 2020 Dec. 2019 Mar. 2020 Dec. 2019 Airbus Helicopters Closing rate € 1 = $ 1.10 $ 1.12 $ 1.10 $ 1.12 Total Gross Exposure 637 731 46 48 of which off-balance sheet 17 95 9 9 Estimated value of collateral (395) (530) (29) (30) Net Exposure 242 202 18 18
Slide 25: Airbus Customer Financing
Airbus Customer Financing 25 IN € BILLION Additions Sell Down Amortization Net change 0.6 1.0 0.9 0.8 0.3 0.8 0.8 0.7 0.5 0.6 0.6 0.2 0.4 Airbus Customer 0.1 0.0 Financing Gross (0.3) (0.5) (0.6) (0.1) Exposure (0.2) (0.2) (0.7) (0.7) (0.7) (0.7) (0.6) (0.2) (0.1) (0.7) (0.0) (1.1) (0.1) (0.1) (0.2)
Slide 26: Balance Sheet Highlights: Assets
Balance Sheet Highlights: Assets 26 IN € MILLION Mar. 2020 Dec. 2019 Non-current Assets 56,466 57,686 of which Intangible & Goodwill 16,623 16,591 of which Property, plant & equipment 17,082 17,294 of which Investments & other long-term financial assets 4,957 6,079 of which Contract assets 186 91 of
Slide 27: Balance Sheet Highlights: Liabilities
Balance Sheet Highlights: Liabilities 27 IN € MILLION Mar. 2020 Dec. 2019 Total Equity 3,528 5,990 of which AOCI (Accumulated Other Comprehensive Income) (3,922) (523) of which Non-controlling interests 11 15 Total Non-current liabilities 46,104 46,045 of which Pensions 6,320 7,932 of which Other pr
Slide 28: Shareholding Structure as at 31 March 2020
Shareholding Structure as at 31 March 2020 28 Free Float 73.9% Shareholder Agreement 26.0% SOGEPA 11.0% GZBV 10.9% SEPI 4.1% Treasury Shares 0.1% 783,173,115 shares issued as at 31 March 2020
Slide 29: Quarterly Revenues Breakdown (Cumulative)
Quarterly Revenues Breakdown (Cumulative) 29 IN € MILLION Q1 H1 9m FY 2019 2019 2019 2019 2020 2020 2020 2020 Restated(1) Restated(1) Restated(1) Restated(1) Airbus 7,569 9,697 24,043 35,572 54,775 Helicopters 1,202 1,007 2,371 3,712 6,007 Defence and Space 2,111 2,112 5,015 7,706 10,907 Elimination
Slide 30: Quarterly EBIT Adjusted Breakdown (Cumulative)
Quarterly EBIT Adjusted Breakdown (Cumulative) 30 IN € MILLION Q1 H1 9m FY 2019 2019 2019 2019 2020 2020 2020 2020 Restated(1) Restated(1) Restated(1) Restated(1) Airbus 191 463 2,193 3,593 5,947 Helicopters 53 15 125 205 422 Defence and Space 15 101 233 355 565 Eliminations 22 (30) (22) (20) 12 Con
Slide 31: Quarterly EBIT Breakdown (Cumulative)
Quarterly EBIT Breakdown (Cumulative) 31 IN € MILLION Q1 H1 9m FY 2019 2019 2019 2019 2020 2020 2020 2020 Restated(1) Restated(1) Restated(1) Restated(1) Airbus 57 319 2,006 3,165 1,794 Helicopters 53 9 124 203 414 Defence and Space (53) (117) (15) 83 (881) Eliminations 22 (30) (22) (20) 12 Consolid
Slide 32: Q1 2020 IFRS vs. APM Cash Flow Reconciliation
Q1 2020 IFRS vs. APM Cash Flow Reconciliation 32 IN € BILLION Q1 2020 IN € BILLION Q1 2020 Cash provided by (used for) operating activities (7.6) Cash provided by (used for) operating activities (7.6) t/o Reimbursement from / contribution to plan assets (0.1) Cash provided by (used for) investing ac
Slide 33: Glossary on Alternative Performance Measures (APM)
Glossary on Alternative Performance Measures (APM) This presentation also contains certain “non-GAAP financial measures”, i.e. financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measure calculated and presented in accordance wi