Airbus Se · EURONEXT:AIR
Airbus — Non-Deal Roadshow (February 2019)
24 slides from Airbus's roadshow presentation, February 2019
Slide 1: FY 2018 Roadshow Presentation
FY 2018 ROADSHOW PRESENTATION February 2019
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: FY 2018 Highlights
3 FY 2018 HIGHLIGHTS Strong 2018 performance, Guidance delivered A380 deliveries cease in 2021 A400M re-baselining negotiated Dividend proposal: € 1.65 / share, +10% vs. FY 2017 2019 Guidance confirms growth trajectory
Slide 4: Airbus at a Glance – as of FY18
4 AIRBUS AT A GLANCE – AS OF FY18 Deliveries by Programme Airbus (units) A320 78% Consolidated Airbus Passenger Aircraft, A350 12% External Revenue by Division Freighter Conversion, A330 6% Services A220 3% A380 2% Helicopters External Revenue Split € 63.7 bn Platforms Civil / Parapublic and 59% t/o
Slide 5: Commercial Positioning – as of FY18
5 COMMERCIAL POSITIONING – AS OF FY18 Airbus Commercial Aircraft Consolidated Airbus Order Book in units by Programme Order Book in value by Region 7,577 units € 460 bn t/o A220 t/o defence 480 units € 39 bn A320 80% A330 4% Asia Pacific 30% Middle East 8% A350 9% A380 1% Europe 28% Latin America 6%
Slide 6: FY 2018 Roadshow Presentation: Market Demand
FY 2018 Market Product FY18 Demand Positioning Review ROADSHOW PRESENTATION
Slide 7: World Fleet to Double Over Next 20 Years
7 WORLD FLEET TO DOUBLE OVER NEXT 20 YEARS 4.4% 26,540 annual Grow growth 37,390 Deliveries 10,850 21,450 Replace Fleet in service 10,600 ~37k Stay New deliveries 2018 2037 Continued healthy traffic growth in 2018: RPK growth +6.7%, Record Load Factor 82%, +260 million passengers Notes: Passenger ai
Slide 8: Long-Term Growth Fuelled by Middle-Class Expansion in Emerging Economies
8 LONG-TERM GROWTH FUELLED BY MIDDLE-CLASS EXPANSION IN EMERGING ECONOMIES 2017 Trips per capita - Bubble size proportional to population Advanced 10 Developing Emerging 1 0 10 20 30 40 50 60 70 80 2017 real GDP per capita* 0.1 0.01 Source: Sabre, IHS Economics, Airbus GMF 2018 Equivalent amount of
Slide 9: FY 2018 Roadshow Presentation: Product Positioning
FY 2018 Market Product FY18 Demand Positioning Review ROADSHOW PRESENTATION
Slide 10: Competitive Aircraft Portfolio Underpins Record Backlog
10 COMPETITIVE AIRCRAFT PORTFOLIO UNDERPINS RECORD BACKLOG Solid and well diversified Backlog* 7,577 aircraft Europe North & CIS America Middle-East Asia Pacific Africa Latin America % Backlog as of end December 2018 Lessors % Share of 2018-2037 PAX deliveries (GMF 2018) Airbus backlog* aligned with
Slide 11: Steady Ramp-Up in a Healthy Commercial Environment
11 STEADY RAMP-UP IN A HEALTHY COMMERCIAL ENVIRONMENT Backlog O&D 8,000 1,600 7,000 1,400 6,000 1,200 5,000 1,000 4,000 800 800 3,000 688 718 600 588 626 629 635 2,000 498 510 534 400 434 453 483 378 1,000 320 200 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 2018 Book-to
Slide 12: Helicopters: Market and Product Positioning
12 HELICOPTERS: MARKET AND PRODUCT POSITIONING CIVIL & PARAPUBLIC MILITARY AIRCRAFT Demand impacted by softness in O&G Military market supported by growing Defence MARKET budgets LT market potential: ~ 22k new h/c in next 20 years Successful campaigns in 2018 UAM new market Product renewal strategy:
Slide 13: Defence and Space: Market and Product Positioning
13 DEFENCE AND SPACE: MARKET AND PRODUCT POSITIONING MILITARY AIRCRAFT SPACE SYSTEMS CIS / UAS / OTHERS Geopolitical instability Growth in space spending Big data / analytics / digital MARKET Growth in defence spending More connected world Cyber protection Increasing need for security Increasing nee
Slide 14: Leveraging Digital in All Areas of Our Business
14 LEVERAGING DIGITAL IN ALL AREAS OF OUR BUSINESS Skywise Data exploitation Connectivity Driving further industrial efficiency Improving reliability of assets in use for customer benefit Generating new business opportunities
Slide 15: FY 2018 Roadshow Presentation: FY18 Review
FY 2018 Market Product FY18 Demand Positioning Review ROADSHOW PRESENTATION
Slide 16: Key Programme Update
16 KEY PROGRAMME UPDATE • Programme now fully consolidated and integrated into Airbus since July 1st 2018 A220 • Good commercial momentum: 135 orders since July 2018. FY18 Backlog: 480 aircraft • Focus on commercial momentum, production ramp-up and cost reduction • Backlog of 6,000+ aircraft support
Slide 17: FY 2018 Financial Performance
17 FY 2018 FINANCIAL PERFORMANCE Revenues EBIT Adjusted in € bn in € bn / RoS (%) 9.2%* 5.4% 59.0 63.7 5.8 3.2 FY 2017 FY 2017 Restated FY 2018 FY 2017 FY 2017 Restated FY 2018 * Airbus RoS 10% EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn 5.22 2.9 2.9 2.67 FY 2017 Restated FY 2
Slide 18: FY 2018 Profitability
18 FY 2018 PROFITABILITY EBIT Performance in € bn FY 2018 EBIT Reported of € 5.0 bn FY 2018 EBIT Adjustments resulting from: € – 463 m A380 5.8 5.0 € – 436 m A400M provision 3.2 2.7 € – 123 m Compliance costs € + 188 m M&A EBIT Adjusted EBIT Reported € + 129 m PDP mismatch / BS revaluation FY 2017 R
Slide 19: Currency Hedge Policy
19 CURRENCY HEDGE POLICY IN $ BILLION Forward Sales as of December 2018 1.9 Collars as of December 2018 4.6 Forward Sales and Collars as of Dec. 2017 1.7 25.4 25.7 22.2 17.0 7.6 1.3 Average hedge 2018 2019 2020 2021 2022 2023 rates and beyond € vs $ 1.24 1.23 1.23 1.24 1.27 1.30 Forwards/Collars (2)
Slide 20: FY 2018 Cash Evolution
20 FY 2018 CASH EVOLUTION IN € BILLION +5.5 -0.6 +0.5 -1.9 -1.2 -2.4 Free Cash Flow incl. A220 before M&A : € 3.0 bn t/o Customer Financing: € 0.1 bn 13.4 Free Cash Flow before M&A and 13.3 Customer Financing € 2.9 bn Net Cash Gross Cash Flow Change in Cash used for M&A(2) Shareholder Pensions & Net
Slide 21: 2019 Guidance and Dividend Proposal
21 2019 GUIDANCE AND DIVIDEND PROPOSAL As the basis for its 2019 guidance, Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions Airbus 2019 Earnings and FCF guidance is before M&A Airbus targets 880 to 890 commercia
Slide 22: Key Priorities
22 KEY PRIORITIES Deliver on 2019 commitments Ramp-up A320 Improve A350 margins Leverage military portfolio Services, Digital and Innovation Deliver Earnings and FCF growth potential
Slide 23: Commitment to Cash Generation & Shareholder Returns
23 COMMITMENT TO CASH GENERATION & SHAREHOLDER RETURNS 2012 - 2018 € 47 bn € 15 bn € 9 bn FCF Shareholder Investment generation(1) Return(2) Dividend per Share 1.50 1.65 1.20 1.30 1.35 0.60 0.75 40% 38% 105% 40% 42% 39% 40% (3) 2012 2013 2014 2015 2016 2017 2018 Financial flexibility protected: Net
Slide 24: Deliver EPS & FCF Growth Potential
24 DELIVER EPS & FCF GROWTH POTENTIAL 2018 - 2021 EPS FCF Future Growth Growth Growth Potential A320neo A350 Volume & Price EPS Growth Margin improvement A350 Turning Profitable A400M* 2021+ A320 Higher Rate potential Boost Competitiveness Working Capital Boost Investment in Control Competitiveness