Slide 1: Annual Results 2011
Annual Results 2011 08 March 2012 Louis Gallois Chief Executive Officer Hans Peter Ring Chief Financial Officer
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: Annual results 2011
Annual results 2011 Highlights & Key Financials Divisional Performance Guidance 2012 & Outlook
Slide 4: Increasing Growth Momentum
4 Increasing Growth Momentum Backlog (bn €) Record order backlog, laying the foundation for profitable growth: Strong backlog development despite uncertain economic environment: Record year in terms of orders for Airbus; 541 448 389 bn € A320NEO success leading to a market share of 64% - redefined c
Slide 5: 2011 Financials above expectation
5 2011 Financials above expectation Guidance 2011 Actuals Actuals in € bn 2010 March - May July Nov. 2011 Gross Orders - Airbus** 644 500-1,000 > 1,000 ~1,500 1,608 Deliveries – Airbus** 510 520-530 520-530 520-530 534 Book to Bill >1 Revenues 45.8 >2010 >2010 > 47.5 49.1 (+4% vs. 2010) EBIT* before
Slide 6: FY 2011 Financial Highlights
6 FY 2011 Financial Highlights in € bn FY 2011 FY 2010 Change Revenues 49.1 45.8 +7% of which Defence 11.6 12.3 -6% EBIT* before one-off 1.8 1.3 +34% Order intake 131.0 83.1 +58% in € bn Dec. 2011 Dec. 2010 Change Total Order book** 541.0 448.5 +21% of which Defence 52.8 58.3 -9% Order intake signif
Slide 7: FY 2011 EBIT* Before One-off
7 FY 2011 EBIT* Before One-off in € bn EADS Airbus Airbus Group Division Commercial EBIT* before one-off 2011 (See slide 24 for other divisions) 1.79 0.53 0.49 % Revenues 3.6% 1.6% 1.6 % One-off impacts: A350 revaluation of commercial Loss Making Contract (0.2) (0.2) (0.2) provisions $ PDP mismatch
Slide 8: FY 2011 Profit & Loss Highlights
8 FY 2011 Profit & Loss Highlights FY 2011 FY 2010 in % of in % of €m Revenues €m Revenues EBIT* 1,696 3.5% 1,231 2.7% Self-financed R&D** 3,152 6.4% 2,939 6.4% EBIT* before R&D 4,848 9.9% 4,170 9.1% Interest result 13 0% (99) (0.2%) Other financial result (233) (0.5%) (272) (0.6%) Taxes (356) (0.7%
Slide 9: Currency Hedge Policy
9 Currency Hedge Policy Contracting in Euro is progressing: > $ 5 bn of future sales have been converted into €, reducing our $Fx exposure by the same amount; Approximately 50% of EADS’ US$ revenues are naturally hedged by US$ procurement; In FY 2011, hedges of $ 19.1 bn* matured at an average hedge
Slide 10: Free Cash Flow
10 Free Cash Flow in € m FY 2011 FY 2010 Net cash position at the beginning of the period 11,918 9,797 Gross Cash Flow from Operations* 3,392 2,177 Change in working capital 1,386 2,819 of which Customer Financing 135 63 Cash used for investing activities** (3,820) (2,289) of which Industrial Capex
Slide 11: Annual results 2011
11 Annual results 2011 Highlights & Key Financials Divisional Performance Guidance 2012 & Outlook EADS Annual Results 2011
Slide 12: Airbus Division
12 Airbus Division Airbus Division Airbus Commercial Airbus Military (after elimination) (excl. A400M) (Former MTAD, incl. A400M) in € m FY 2011 FY 2010 FY 2011 FY 2010 FY 2011 FY 2010 a) c) c) Deliveries (units) 558 a/c 527 a/cb) 534a/c 510a/c 29 a/c 20 a/c Revenues 33,103 29,978 31,159 27,673 2,50
Slide 13: Airbus Division
13 Airbus Division Airbus Commercial (excl. A400M) Revenues +13% EBIT* before one-off +73% • 534 physical deliveries with revenue recognition: • Favorable volume, mix and pricing improvement reduced by: – 26 A380, 421 SA, 87 LR. – Deterioration of hedge rates (€ - 0.20 bn) see slide 23; • Favourable
Slide 14: Eurocopter
14 Eurocopter Financials above expectation: record revenues (+12%) and in € m FY 2011 FY 2010 improved order intake 457 net orders booked in 2011 (346 in 2010) thanks to market recovery Revenues 5,415 4,830 and EC’s long-term innovation strategy; R&D self-financed** 235 189 Higher activity in commer
Slide 15: Astrium
15 Astrium First AGILE achievements enabling Astrium to improve in € m FY 2011 FY 2010 competitiveness and win new business Robust Order Intake of € 3.5 bn demonstrates continued momentum in Revenues 4,964 5,003 commercial and institutional space markets: R&D self-financed 109 85 Landmark telecom sa
Slide 16: Cassidian
16 Cassidian Challenging business environment in € m FY 2011 FY 2010 Delayed Order Intake; Increased self-funded R&D; Revenues 5,803 5,933 Transformation programme on track. R&D self-financed 275 251 in % of revenues 4.7% 4.2% Revenues are stable despite increasing market pressure EBIT* 331 457 Stro
Slide 17: Other Businesses
17 Other Businesses Revenues +6% Higher revenues at EADS North America on LUH and M&L transport in € m FY 2011 FY 2010 aircraft; Revenues 1,252 1,182 Rate increases at Sogerma and higher cabin seat activity. R&D self-financed 10 10 in % of revenues 0.8% 0.8% EBIT* more than doubled EBIT* 59 25 EADS
Slide 18: Annual results 2011
18 Annual results 2011 Highlights & Key Financials Divisional Performance Guidance 2012 & Outlook EADS Annual Results 2011
Slide 19: Guidance 2012
19 Guidance 2012 2012 guidance is based on €/$ 1.35, as average rate Airbus Orders & Deliveries: Airbus deliveries around 570 a/c; book to bill > 1. Revenues: EADS revenues will grow above 6% in 2012. EBIT* before one off: EADS EBIT* before one off should improve significantly thanks to volume incre
Slide 20: Dividend Policy 2011 / Dividend policy 2012
Dividend Policy 2011 20 Dividend policy 2012 Gross Dividend Per Share, in € 0.65 0.50 0.50 0.50 0.45* 0.40 0.30 0.20 0.22 0.12 0.12 - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Ex-dividend date: 04 June 2012* Record date: 06 June 2012* Payment date: 07 June 2012* * Board proposal to
Slide 21: EADS flight path to profitable growth
21 EADS flight path to profitable growth 2012-2016 main drivers Airbus production rate and pricing increases and A380 improvement; RoS [%] Margin dilution due to early A350 XWB deliveries; Eurocopter commercial market gaining momentum, contract discussions with government to be monitored; Cassidian
Slide 22: Appendix
Appendix @AIRBUS GQASTRIUM @CASSIDIAN €EUROCOPTER EADS
Slide 23: FY 2011 Forex EBIT* Impact Bridge
23 FY 2011 Forex EBIT* Impact Bridge Forex impact on EBIT* (in € bn) BRIDGE Revaluation of Airbus Commercial LMC provisions (0.03) Deterioration of hedge rates (€: $ 1.36 to 1.37) (0.2) Other one-off forex effect including PDP reversal 0.2 Compared to FY 2010 (0.03) * Pre-goodwill impairment and exc
Slide 24: FY 2011 EBIT* Before One-off by Division
24 FY 2011 EBIT* Before One-off by Division EBIT* before One-offs Reported in € bn one-off EBIT* Airbus 0.53 0.05 0.58 Eurocopter 0.37 (0.11) 0.26 Astrium 0.29 (0.02) 0.27 Cassidian 0.40 (0.07) 0.33 Other Businesses 0.05 0.01 0.06 HQ & eliminations 0.15 0.05 0.20 EADS 1.79 (0.09) 1.70 EADS Annual Re
Slide 25: FY 2010 EBIT* Before One-off
25 FY 2010 EBIT* Before One-off EADS Airbus Airbus in € bn Group Division Comm. EBIT* before one-off 2010 1.34 0.30 0.28 % Revenues 2.9% 1.0% 1.0% One off impacts: Currency effect from revaluation of commercial Loss making 0.03 0.03 0.03 Contract provisions $ PDP mismatch and balance sheet revaluati
Slide 26: Net Income Before One-off
26 Net Income Before One-off in € m FY 2011 FY 2010 Net Income reported 1,033 553 One-offs in EBIT* (98) (113) One-offs Financial Result 59 41 Tax effect on one-offs (incl. tax one-offs) 11 22 Net Income before one-off 1,061 603 EPS before one-off 1 € 1.31 € 0.74 EPS* before one-off 1 € 1.39 € 0.78
Slide 27: FY 2011 Financial Highlights
27 FY 2011 Financial Highlights FY 2011 FY 2010 in % of in % of €m Revenues €m Revenues Revenues 49,128 45,752 self-financed R&D** 3,152 6.4% 2,939 6.4% EBITDA* 3,520 7.2% 2,769 6.1% EBIT* 1,696 3.5% 1,231 2.7% EBIT* before R&D 4,848 9.9% 4,170 9.1% Net income 1,033 2.1% 553 1.2% EPS*** € 1.27 € 0.6
Slide 28: Shareholding structure
28 Shareholding structure Contractual Partnership Free float SOGEADE SEPI Daimler Lagardère incl. & Minor direct holdings: French French State: 0.06% State Treasury shares 0.45% 22.35% 5.45% 22.35%* 50.14% 49.86% as at 31st December 2011 * On 9 February 2007, Daimler reached an agreement with a cons
Slide 29: Expected EADS Average Hedge Rates € vs. $
29 Expected EADS Average Hedge Rates € vs. $ Average hedge rates 1.40 1.40 1.38 1.37 1.37 1.37 1.37 1.36 1.36 1.36 1.35 1.35 1.35 1.35 1.35 1.32 1.30 Q1 Q2 Q3 Q4 FY 2010 Average FY 2010 2011 Average FY 2011 2012e Average FY 2012e EADS Annual Results 2011
Slide 30: Provision Consumption (as at Dec. 2011)
30 Provision Consumption (as at 31 Dec. 2011) EADS Annual Results 2011
Slide 31: Airbus Customer Financing
31 Airbus Customer Financing Active exposure management Net Exposure fully provisioned Gross Net Exposure Exposure € 0.4 bn € 1.1bn Estimated ($ 1.4bn) Collateral € 0.6 bn 31st Dec. 2011 4.3 3.9 3.1 3.8 4.8 4.6 3.8 1.8 1.5 1.5 1.8 1.7 1.4 Gross exposure in $ bn EADS Annual Results 2011
Slide 32: Customer Financing Exposure
32 Customer Financing Exposure 100% AIRBUS 50% ATR 100% EC in € m Dec.2011 Dec.2010 Dec.2011 Dec.2010 Dec.2011 Dec.2010 Closing rate € 1 = $ 1.29 $ 1.34 Total Gross exposure 1,105 1,266 98 115 86 89 of which off-balance sheet 267 333 56 46 40 48 Estimated value of collateral (627) (759) (86) (105) (
Slide 33: Q4 2011 Key Figures
33 Q4 2011 Key Figures EADS Group in € bn Q4 2011 Q4 2010 Revenues 16.4 14.2 EBIT* 0.8 0.4 FCF before customer financing and M&A** 1.9 1.8 New orders 37.1 25.4 Revenues EBIT* in € m Q4 2011 Q4 2010 Q4 2011 Q4 2010 Airbus 10,692 8,238 289 9 Eurocopter 1,957 1,745 102 62 Astrium 1,524 1,777 102 125 Ca
Slide 34: EBIT* Calculation
34 EBIT* Calculation in € m FY 2011 FY 2010 EBIT* 1,696 1,231 Exceptionals: Disposal (fixed assets in other income) (1) 0 Fair value depreciation (40) (44) Impairment / Disposal of goodwill (42) 0 Profit before finance cost 1,613 1,187 and income taxes * Pre-goodwill impairment and exceptionals EADS
Slide 35: Net Cash Position
35 Net Cash Position in € m Dec. 2011 Dec. 2010 Gross cash 16,785 16,196 Financing Debts Short-term Financing Debts (1,476) (1,408) Long-term Financing Debts (3,628) (2,870) Reported Net cash 11,681 11,918 Airbus non-recourse debt 455 532 Net cash excl. non-recourse 12,136 12,450 EADS Annual Results
Slide 36: EADS: Strong Liquidity Position as at Dec. 2011
36 EADS: Strong Liquidity Position as at 31 Dec. 2011 Maturity 2016* , undrawn € 3 bn Fully committed by 39 banks No financial covenants Credit Facility No MAC clause EMTN programme Long term rating : € 5.1bn Moody’s: A1 stable Financing Liabilities S & P: A – positive (incl. € 1.5 bn liabilities of
Slide 37: Balance Sheet Highlights: Assets
37 Balance Sheet Highlights: Assets in € m Dec. 2011 Dec. 2010 Non-current Assets 45,455 41,197 of which Intangible & Goodwill 12,745 11,299 of which Property, plant & equipment 14,159 13,427 of which Investments & Financial assets 5,055 4,837 of which positive hedge mark-to-market 486 602 of which
Slide 38: Balance Sheet Highlights: Liabilities
38 Balance Sheet Highlights: Liabilities in € m Dec. 2011 Dec. 2010 Total Equity 8,870 8,936 of which OCI (Other Comprehensive Income) 153 446 of which Non-controlling interests 20 95 Total Non-current liabilities 32,100 30,481 of which pensions 5,628 5,037 of which other provisions 3,497 3,176 of w
Slide 39: Quarterly Revenues Breakdown (cumulative)
39 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 22,411 21,740 33,103 29,978 Thereof Airbus Comm.* 6,707 5,989 14,464 12,965 21,120 20,446 31,159 27,673 Thereof Airbus Military 434 384 1,112 1,007 1,747
Slide 40: Quarterly EBIT* Breakdown (cumulative)
40 Quarterly EBIT* Breakdown (cumulative) in € m Q1 H1 9m FY 2011 2010 2011 2010 2011 2010 2011 2010 Airbus Division 115 7 202 104 295 296 584 305 Thereof Airbus Comm.** 125 6 223 241 306 328 543 291 Thereof Airbus Military 1 21 1 3 (161) 5 (35) 49 Eurocopter 31 26 94 71 157 121 259 183 Astrium 52 4
Slide 41: Quarterly Order-intake Breakdown (cumulative)
41 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 85,485 47,949 117,874 68,223 Thereof Airbus Comm .* 3,647 11,035 52,086 24,302 85,421 47,384 117,301. 68,210 Thereof Airbus Military 105 146 319 285
Slide 42: Quarterly Order-book Breakdown (cumulative)
42 Quarterly Order-book Breakdown (cumulative) in € m Q1 H1 9m FY 2011 2010 2011 2010 2011 2010 2011 2010 Airbus Division 374,891 366,051 407,094 405,027 456,788 377,325 495,513 400,400 Thereof Airbus Comm .* 353,574 346,182 386,101 385,677 436,427 358,110 475,477 378,907 Thereof Airbus Military 22,