Slide 1: H1 Results 2011
H1 Results 2011 29 July 2011 Louis Gallois CEO 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: H1 Highlights
4 H1 Highlights Strong commercial momentum ongoing: Record Le Bourget air show for Airbus Commercial; A320neo commitments > 1,000 since December 2010 launch; A320 and A320neo families endorsed by American Airlines. Strategic roadmap progress - successful completion of Vector Aerospace acquisition: F
Slide 5: H1 2011 Financial Highlights
5 H1 2011 Financial Highlights in € bn H1 2011 H1 2010 Change Revenues 21.9 20.3 +8% of which Defence 4.9 5.1 -4% EBIT* before one-off 0.7 0.6 +13% Order intake 58.1 30.8 +89% in € bn June 2011 Dec. 2010 Change Total Order book** 453.8 448.5 +1% of which Defence 55.6 58.3 -5% Strong order intake due
Slide 6: H1 2011 EBIT* Before One-off
6 H1 2011 EBIT* Before One-off EADS AIRBUS AIRBUS AIRBUS Comm. Military Division in € bn (for EBIT* before One-off by Division see slide 21) Group EBIT* before one-off 2011 0.72 0.33 0.00 0.31 % Revenues 2.3% 0.0% 2.0% 3.3% One-off impacts: Airbus Commercial $ PDP mismatch and balance sheet revaluat
Slide 7: H1 2011 Profit & Loss Highlights
7 H1 2011 Profit & Loss Highlights H1 2011 H1 2010 in % of in % of €m Revenues €m Revenues EBIT* 563 2.6% 406 2.0% Self-financed R&D** 1,409 6.4% 1,301 6.4% EBIT* before R&D 1,972 9.0% 1,707 8.4% Interest result (97) (0.4%) (114) (0.6%) Other financial result (269) (1.2%) 5 0% Taxes (45) (0.2%) (88)
Slide 8: Currency Hedge Policy
8 Currency Hedge Policy Approximately 50% of EADS’ US$ revenues naturally hedged by US$ procurement; In H1 2011, hedges of $ 8.9 bn* matured at an average hedge rate of € 1 = $ 1.37; In H1 2011, new hedge contracts of $ 9.9 bn, including $ 1 bn of options, were added at an average rate of € 1= $ 1.3
Slide 9: Free Cash Flow
9 Free Cash Flow in € m H1 2011 H1 2010 Net cash position at the beginning of the period 11,918 9,797 Gross Cash Flow from Operations* 1,083 874 Change in working capital (30) (815) of which Customer Financing 102 (267) Cash used for investing activities** (1,237) (796) of which Industrial Capex (ad
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 H1 2011 H1 2010 H1 2011 H1 2010 H1 2011 H1 2010 a) a) Deliveries 263 a/c 258 a/c 258 a/c 250 a/c 7 a/c 9 a/c Revenues 15,312 13,853 14,464 12,965 1,112 1,007 R&D s
Slide 12: Airbus Division
12 Airbus Division Airbus Commercial (excl. A400M) Revenues +12% EBIT* before one-off +23% • Favourable volume effect: +4 LR, +6 SA, +3 A380 with • Favourable volume, pricing improvement net of escalation; revenue recognition; • Hedge rate deterioration (€ -0.16 bn); • Pricing improvement, net of es
Slide 13: Eurocopter
13 Eurocopter in € m H1 2011 H1 2010 Overview • 192 new net orders booked, above the H1 2010 level, Revenues 2,171 2,109 cancellation trend continues to slow. R&D self-financed** 102 94 • Light helicopter and US market in recovery. in % of revenues 4.7% 4.5% EBIT* 94 71 Revenues +3% in % of revenues
Slide 14: Astrium
14 Astrium in € m H1 2011 H1 2010 Revenues +11% : • Higher activity in launchers and satellites; Revenues 2,347 2,110 • Lower volume in services. R&D self-financed 30 31 in % of revenues 1.3% 1.5% EBIT* -3% EBIT* 103 106 • Higher volume and productivity in launchers and satellites in % of revenues 4
Slide 15: Cassidian
15 Cassidian in € m H1 2011 H1 2010 Changing business environment • Defence budget pressure: Revenues 2,133 2,183 – Delayed order intake; high R&D expenses. R&D self-financed 113 123 • Preparation of transformation programme at Cassidian on in % of revenues 5.3% 5.6% track to become effective in H2
Slide 16: Other Businesses
16 Other Businesses in € m H1 2011 H1 2010 Revenues -5% • Higher passenger seat activity and rate increases at Sogerma Revenues 524 554 more than offset by lower deliveries at ATR. R&D self-financed 4 2 in % of revenues 7.6% 0.4% EBIT* EBIT* 12 0 • EADS North America gain on disposal € +10 m. 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; Gross orders expected to be above 1,000. Revenues: EADS revenues above the 2010 level EBIT* before one-off: EADS still expects 2011 EADS EBIT* before one-off to remain stable
Slide 19: Appendix
EADS @AIRBUS Q@ASTRIUM @CASSIDIAN GEUROCOPTER
Slide 20: H1 2011 Forex EBIT* Impact Bridge
20 H1 2011 Forex EBIT* Impact Bridge in € m Forex impact on EBIT* BRIDGE Deterioration of hedge rates (€: $ 1.34 to 1.37) (0.16) out of which Airbus (0.16) One-time impacts Revaluation of Airbus Commercial LMC provisions 2010 (0.04) Revaluation of Airbus Military A400M provision 2010 0.15 Other one-
Slide 21: H1 2011 EBIT* Before One-off by Division
21 H1 2011 EBIT* Before One-off by Division in € bn EBIT* before One-offs Reported one-off EBIT* Airbus 0.31 (0.11) 0.20 thereof: Airbus Commercial 0.33 (0.11) 0.22 Airbus Military 0.00 0.00 Eurocopter 0.15 (0.06) 0.09 Astrium 0.10 0.10 Cassidian 0.09 0.09 Other Businesses 0.00 0.01 0.01 HQ & Elimin
Slide 22: H1 2010 EBIT* Before One-off
22 H1 2010 EBIT* Before One-off EADS AIRBUS AIRBUS AIRBUS in € bn Group Comm. Military Division. EBIT* before one-off 2010 0.64 0.27 (0.01) 0.26 % Revenues 3.2% 2.1% 1.9% One-off impacts: Airbus Commercial $ PDP mismatch and balance sheet revaluation (0.10) Currency effect from revaluation of Loss M
Slide 23: Net Income Before One-off
23 Net Income Before One-off in € m H1 2011 H1 2010 Net Income reported 109 185 One-offs in EBIT* (160) (230) One-offs Financial Result (188) 157 Tax effect on one-offs 104 22 Net Income before one-off 353 236 EPS before one-off 1 € 0.44 € 0.29 Net Income before one-off excludes the following items:
Slide 24: H1 2011 Financial Highlights
24 H1 2011 Financial Highlights H1 2011 H1 2010 in % of in % of €m Revenues €m Revenues Revenues 21,936 20,308 self-financed R&D** 1,409 6.4% 1,301 6.4% EBITDA* 1,344 6.1% 1,148 5.7% EBIT* 563 2.6% 406 2.0% EBIT* before R&D 1,972 9.0% 1,707 8.4% Net income (loss) 109 0.5% 185 0.9% EPS*** € 0.13 € 0.
Slide 25: Shareholding structure
25 Shareholding structure Contractual Partnership Free float SOGEADE SEPI Daimler Lagardère incl. & Minor direct holdings: French French State: 0.06% State Treasury shares 0.42% 22.43% 5.47% 22.43%* 50.33% 49.67% as at 30 June 2011 * On 9 February 2007, Daimler reached an agreement with a consortium
Slide 26: Expected EADS Average Hedge Rates € vs. $
26 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 - H1 2011 earnings
Slide 27: Airbus Customer Financing
27 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 0.2 0.6 0.5 1.5 0.4 0.8 Exposure (0.9) (0.7) (1.3) (0.3)
Slide 28: Customer Financing Exposure
28 Customer Financing Exposure 100% AIRBUS 50% ATR 100% EC in € m June 2011 Dec. 2010 June 2011 Dec. 2010 June 2011 Dec. 2010 Closing rate € 1 = $ 1.45 $ 1.34 Total Gross exposure 1,007 1,266 91 115 84 89 of which off-balance sheet 248 333 43 46 44 48 Estimated value of collateral (571) (759) (82) (
Slide 29: Q2 2011 Key figures
29 Q2 2011 Key figures in € bn Q2 2011 Q2 2010 Revenues 12.1 11.4 EBIT* 0.4 0.3 FCF before customer financing** (0.5) 0.5 New orders 49.8 16.4 Revenues EBIT* in € m Q2 2011 Q2 2010 Q2 2011 Q2 2010 Airbus 8,299 7,589 87 97 Eurocopter 1,348 1,311 63 45 Astrium 1,176 1,186 51 65 Cassidian 1,255 1,255 8
Slide 30: EBIT* Calculation
30 EBIT* Calculation in € m H1 2011 H1 2010 EBIT* 563 406 Exceptionals: Disposal of Goodwill (22) 0 Fair value depreciation (20) (22) Profit before finance cost 521 384 and income taxes EADS - H1 2011 earnings * Pre-goodwill impairment and exceptionals
Slide 31: Net Cash Position
31 Net Cash Position in € m June 2011 Dec. 2010 Gross cash 15,275 16,196 Financing Debts Short-term Financing Debts (1,344) (1,408) Long-term Financing Debts (2,891) (2,870) Reported Net cash 11,040 11,918 Airbus non-recourse debt 464 532 Net cash excl. non-recourse 11,504 12,450 EADS - H1 2011 earn
Slide 32: EADS: Strong Liquidity Position as at 30 June 2011
32 EADS: Strong Liquidity Position as at 30 June 2011 Maturity 2016*, undrawn € 3.0 bn Fully committed by 39 banks No financial covenants Credit Facility No MAC clause EMTN progamme € 4.2 bn Long term rating : Financing Liabilities Moody’s: A1 (incl. € 1.5 bn liabilities of EMTN) S & P: A– € 15.3 bn
Slide 33: Balance Sheet Highlights: Assets
33 Balance Sheet Highlights: Assets in € m June 2011 Dec. 2010 Non-current Assets 41,630 41,197 of which Intangible & Goodwill 11,554 11,299 of which Property, plant & equipment 13,349 13,427 of which Investments & Financial assets 4,973 4,837 of which positive hedge mark-to-market 1,399 602 of whic
Slide 34: Balance Sheet Highlights: Liabilities
34 Balance Sheet Highlights: Liabilities in € m June 2011 Dec. 2010 Total Equity 11,274 8,936 of which OCI (Other Comprehensive Income) 2,955 446 of which Non-controlling interests 27 95 Total Non-current liabilities 28,414 30,481 of which pensions 4,825 5,037 of which other provisions 2,951 3,176 o
Slide 35: Quarterly Revenues Breakdown (cumulative)
35 Quarterly Revenues Breakdown (cumulative) in € m Q1 H1 9m FY 2011 2010 2011 2010 2011 2010 2011 2010 Airbus Division 7,013 6,264 15,312 13,853 … 21,740 … 29,978 Thereof Airbus Comm.* 6,707 5,989 14,464 12,965 ... 20,446 ... 27,673 Thereof Airbus Military 434 384 1,112 1,007 ... 1,540 ... 2,684 Eu
Slide 36: Quarterly EBIT* Breakdown (cumulative)
36 Quarterly EBIT* Breakdown (cumulative) in € m Q1 H1 9m FY 2011 2010 2011 2010 2011 2010 2011 2010 Airbus Division 115 7 202 104 … 296 … 305 Thereof Airbus Comm.** 125 6 223 241 … 328 … 291 Thereof Airbus Military 1 1 3 (161) … (35) … 21 Eurocopter 31 26 94 71 … 121 … 183 Astrium 52 41 103 106 … 1
Slide 37: Quarterly Order intake Breakdown (cumulative)
37 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 52,394 24,542 … 47,949 … 68,223 Thereof Airbus Comm.* 3,647 11,035 52,086 24,302 … 47,384 … 68,210 Thereof Airbus Military 105 146 319 285 … 626 … 152 Eurocopter 7
Slide 38: Quarterly Order book Breakdown (cumulative)
38 Quarterly Order book Breakdown (cumulative) in € m Q1 H1 9m FY 2011 2010 2011 2010 2011 2010 2011 2010 Airbus Division 374,891 366,051 407,094 405,027 … 377,325 … 400,400 Thereof Airbus Comm.* 353,574 346,182 386,101 385,677 … 358,110 … 378,907 Thereof Airbus Military 22,487 21,155 22,061 20,773