Slide 1: FY 2003 Results: To New Levels
FY 2003 Results To New Levels Philippe Camus, CEO Rainer Hertrich, CEO Hans Peter Ring, CFO Analyst conference call – 8th March 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 forwar
Slide 2: FY2003 Financial Highlights
Content 1. Group Overview 2. Operating Performance by Division 3. Financials 3 FY2003 Financial Highlights FY 2003 FY 2002 Revenues 30.1 € bn 29.9 € bn of which Defence 7.1 € bn 6.0 € bn EBIT* 1.5 € bn 1.4 € bn Net Income* 0.2 € bn (0.3 € bn) FCF before cust. financing** 2.1 € bn 0.6 € bn New orders
Slide 3: Exceeding Promises… Again
Exceeding Promises… Again 2003 Guidance 2003 Achievements Book-to-bill over 1 9 2.0 EBIT* ~ stable from 2002 9 € 1.5 bn (+8.2%) Revenues ~ stable from 2002 9 € 30.1 bn(+0.8%) FCF pre-customer financing >0 9 € 2.1 bn • All Divisions’ EBIT growing or stable … … except Space, due to €288m restructuring
Slide 4: Commercial Aviation Leadership and Space Poised for Profitability
No. 1 in Commercial Aviation: Leadership and Profitability…. 16.7% EBIT* margin 15.6% pre-R&D 15% • 305 deliveries in face of war and 5.1% 3.9% Other R&D expenses 4.4% SARS 5.7% A380 related R&D • Recent & innovative family of 1.9% 4.2% expenses products achieves overall leadership 8% 7.0% 7.1% EBIT
Slide 5: Defence Momentum and Reaching Out Globally
Defence Momentum Major Programs secured,… • Eurofighter 1st export order from Austria • MBDA Aster order from OCCAR (MBDA 100% share €2.3bn) • Eurocopter Spain 3rd partner in Tiger, NH90 order from Greece • MTA € 20 bn A400M order … overall expertise proved, • Systems: GBAD demonstrator, Netcos demo
Slide 6: Airbus
Content 1. Group Overview 2. Operating Performance by Division 3. Financials 11 Airbus €m FY 2003 FY 2002 • Revenues increased 5% with constant €-$ rate due to better mix Deliveries 305 303 and prices Revenues 19,048 19,512 R&D self-financed 1,819 1,682 • EBIT margin pre-R&D reaches in % of revenues
Slide 7: Airbus Customer Financing Exposure Controlled; MTA
Airbus Customer Financing Exposure Controlled in €m Dec. 2003 Dec. 2002 Total Gross exposure 3,822 € m 3,581 € m of which off-balance sheet 724 € m 891 € m Estimated collateral value (2,229 € m) (2,061 € m) Net exposure before provision 1,593 € m 1,520 € m Provision (1,593 € m) (1,520 € m) Residual
Slide 8: Aeronautics and Space
Aeronautics FY 2002 • Revenues: Eurocopter growth €m FY 2003 Pro-forma** offset by regional aircraft market Revenues depression 3,803 3,834 R&D self-financed 62 90 • EBIT margin improved thanks to in % of revenues 1.6% 2.3% military helicopter business EBIT* 217 180 in % of revenues 5.7% 4.7% • Expo
Slide 9: Defence and Security Systems
Defence and Security Systems FY 2002 • Revenues +8% and EBIT margin €m FY 2003 Pro-forma** improvement thanks to missiles and Revenues 5,165 4,770 Eurofighter deliveries R&D self-financed 223 227 • New organisation effective: in % of revenues 4.3% 4.8% •Defence focus EBIT* 171 122 •Eurofighter integ
Slide 10: Profit & Loss Highlights and Development of Net Cash
Profit & Loss Highlights FY 2003 FY 2002 in % of in % of €m Revenues €m Revenues Revenues 30,133 29,901 self-financed R&D 2,189 7.3% 2,096 7.0% EBITDA 3,137 10.4% 3,031 10.1% EBIT* 1,543 5.1% 1,426 4.8% Interest and (55) (0.2%) (60) (0.2%) other financial result Taxes (474) (1.6%) (453) (1.5%) Net i
Slide 11: Continuing Hedge Policy and IAS 38 Compliance
Continuing Hedge Policy Approx. 50% of EADS US$ revenues are naturally hedged by US$ procurement Æ at around 300 a/c a year, annual net exposure is $9bn - $10bn EADS hedge portfolio (US$ 42.7 bn) on Dec. 31, 2003 Q4 2003: US$ 1.3 bn gross additions to hedges US$ bn 12 9,6 8,7 10 8,0 8 6,4 5,4 6 4 3,
Slide 12: 2004 Guidance
2004 Guidance Growth in profitability • Revenues ca. 29 / 30 €bn ** • EBIT* ca. 1.8 €bn*** • Book-to-bill over 1 • FCF before cust.financing positive Dividend proposal to the 2004 AGM € 0.40 per share (+33% over 2003) * pre goodwill and exceptionals ** based on a budget rate of € = 1.20 $ for the pa
Slide 13: Balance Sheet Highlights
Appendix 25 Balance Sheet Highlights in € m Dec. 2003 Dec. 2002 Assets 54,378 46,254 of which Goodwill 9,372 9,586 of which cash & equivalents, securities 7,872 6,200 of which positive hedge mark-to-market 7,964 2,819 Stockholders' equity 16,149 12,765 of which OCI (Other Comprehensive Income) 5,934
Slide 14: EBIT* Calculation; Restructuring, Write-off and Disposal Items
EBIT* Calculation in € m Dec. 2003 Dec. 2002 Result before financial inc. and 561 160 income tax Income from investments ** 186 87 Exceptionals: Goodwill amortization 567 936 Fair value adjustment 229 243 EBIT* 1,543 1,426 * pre goodwill and exceptionals ** incl. Dassault-Aviation contribution for €
Slide 15: Net Cash Position; Net Income pre Goodwill and Exceptionals
Net Cash Position Financial debts backed by (defeasance) security deposit are netted with their related financial asset from 2003. New reporting Previous reporting in m€ Dec.2003 Dec. 2002 Dec. 2002 Gross cash 7,872 6,200 6,200 Financial Debts* (4,767) (3,830) (4,976) Reported Net cash 3,105 2,370 1
Slide 16: A380 R&D and Capex; Customer Financing Exposure
A380 in Line … Cumulative A380 R&D Self-financed R&D expensed by quarter in € m 740 = 2.3 €bn 628 628 650 528 548 445 473 480 485 412 403 450 356 322 319 262 273 193 228 250 126 150 154 64 93 101 50 Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 A380
Slide 17: Quarterly Figures Q4 2003 and Revenues Breakdown
Quarterly Figures Q4 2003 : in € bn Q4 2003 Q4 2002 Revenues 11.6 € bn 9.9 € bn EBIT* 0.8 € bn 0.4 € bn FCF before cust. financing** 2.2 € bn 0.8 € bn New orders 11.7 € bn 8.7 € bn * pre goodwill and exceptionals ** excl. investments in medium term securities and consolidation changes Revenues EBIT*
Slide 18: Quarterly EBIT and Order-intake Breakdown
Quarterly EBIT* Breakdown (Cumulative) Q1 Q2 Q3 Q4 in €m 2003 2002 2002 2002 2002 new format** new format** 2003 new format** 2003 new format** 2003 new format** Airbus 166 396 621 874 701 1,072 1,353 1,361 MTA (11) (12) (8) (72) (7) (79) 30 (80) Aeronautics** 16 5 59 29 112 84 217 180 Space (21) (3
Slide 19: Quarterly Order-book Breakdown
Quarterly Order-book Breakdown Q1 Q2 Q3 Q4 in €m 2003 2002 2002 2002 2002 new format* new format* 2003 new format* 2003 new format* 2003 new format* Airbus 134,615 151,794 154,428 145,500 153,302 148,898 141,836 140,996 MTA 677 1,295 20,476 1,283 20,429 1,258 20,007 633 Aeronautics* 10,193 10,560 9,