Slide 1: Q1 Results 2018
AIRBUS Q1 Results 2018 27 April 2018 Harald Wilhelm Chief Financial Officer
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT 2 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: Q1 Results Highlights
Q1 Results 2018 Company Divisional Guidance Highlights Highlights Highlights
Slide 4: Q1 2018 Highlights
Q1 2018 HIGHLIGHTS 4 Backlog and commercial momentum support ramp-up plans Q1 financials reflect engine and delivery phasing 2018 Guidance confirmed
Slide 5: Q1 2018 Commercial Positioning
Q1 2018 COMMERCIAL POSITIONING 5 Consolidated Airbus Order Book Consolidated Airbus by Division External Revenue by Division Q1 2018 22% Order Intake (net) 45 Airbus (in units) Order book 7,189 € 10 bn 8% t/o defence € 1.8 bn Order Intake (net) 1,288 Helicopters (in € m) Order book 13,176 70% Order
Slide 6: Q1 2018 Financial Performance
Q1 2018 FINANCIAL PERFORMANCE 6 Revenues EBIT Adjusted in € bn in € bn / RoS (%) 11.4 10.1 0.1% 0.01 Q1 2017 Q1 2018 (0.02) -0.2% Q1 2017 Q1 2018 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn (0.06) (0.12) (1.3) (3.8) Q1 2017 Q1 2018 Q1 2017 Q1 2018 (1) Q1 2018 Average number of
Slide 7: Q1 2018 Profitability
Q1 2018 PROFITABILITY 7 EBIT Performance in € bn Q1 2018 EBIT Reported of € 199 m Q1 2018 Adjustments resulting from: € + 159 m Airbus DS Communications Inc. business 0.58 € + 46 m $ PDP mismatch / BS revaluation 0.01 0.20 €- 20 m Compliance / Others (0.02) € + 185 m Net Adjustments EBIT Adjusted EB
Slide 8: Currency Hedge Policy
CURRENCY HEDGE POLICY 8 IN $ BILLION Forward Sales as of Mar. 2018 Collars as of Mar. 2018 Forward Sales and Collars as of Dec. 2017 3.8 6.5 4.6 1.7 17.7 21.5 17.9 11.7 3.7 2018 2022 Average hedge rates remaining 9 months 2019 2020 2021 and beyond 1.22 1.24 1.22 1.23 1.24 € vs $ Forwards/Colla
Slide 9: Q1 2018 Cash Evolution
Q1 2018 CASH EVOLUTION 9 IN € BILLION 0.2 0.0 -3.8 -0.1 13.4 Free Cash Flow : € - 3.7 bn t/o M&A (2): € + 0.2 bn 9.8 t/o Customer Financing: € - 0.0 bn Free Cash Flow before M&A and Customer Financing € - 3.8 bn Net Cash position Gross Cash Flow from Change in Working Cash used for Pensions & Others
Slide 10: Q1 Results Divisional Highlights
Q1 Results 2018 Company Divisional Guidance Highlights Highlights Highlights
Slide 11: Airbus
11 IN € MILLION Q1 2018 Q1 2017 Change Deliveries by Programme (units) 1% Order Intake (net) 45 6 650.0% 14% Units 7% Order book 7,189 6,744 6.6% 78% Deliveries (Units) 121 136 -11.0% A320 A330 Revenues 7,222 8,166 -11.6% A350 A380 R&D Expenses 430 374 15.0% in % of Revenues 6.0% 4.6% Extern
Slide 12: Helicopters
HELICOPTERS 12 IN € MILLION Q1 2018 Q1 2017 Change External Revenue Split Order Intake (net) 104 60 73.3% Units Order book 744 748 -0.5% 49% 51% Order Intake (net) 1,288 1,417 -9.1% Value Order Book 13,176 12,921 2.0% Defence Civil Deliveries (Units) 52 78 -33.3% Revenues 961 1,176 -18.3% R&D Ex
Slide 13: Defence and Space
DEFENCE AND SPACE 13 IN € MILLION Q1 2018 Q1 2017 Change External Revenue Split Order Intake (net) 1,581 1,521 3.9% 38% Order Book 37,303 39,159 -4.7% 62% Revenues 2,217 2,340 -5.3% Platforms Services R&D Expenses 58 60 -3.3% in % of Revenues 2.6% 2.6% EBIT Adjusted 112 118 -5.1% in % of Revenue
Slide 14: Q1 Results Guidance
Q1 Results 2018 Company Divisional Guidance Highlights Highlights Highlights
Slide 15: 2018 Guidance
2018 GUIDANCE 15 As the basis for its 2018 guidance, Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions Airbus 2018 earnings and FCF guidance is based on a constant perimeter, before M&A Airbus expects to deliver
Slide 16: Key Priorities
KEY PRIORITIES 16 Deliver ~800 a/c in 2018, prepare further ramp-up potential Leverage competitive aircraft portfolio Agree and deliver on A400M re-baselined roadmap Invest in our future for improved efficiency and competitiveness Deliver EPS and FCF growth potential Earnings and FCF taking off!
Slide 17: Appendix
Q1 Results 2018 Appendix AIRBUS
Slide 18: Expected Airbus Average Hedge Rates € vs. $
EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $ 18 Active exposure management 1.36 Average 1.34 1.33 Hedge Rates 1.32 FY 2017 1.29 1.30 (1) 1.31 1.29 FY 2018E 1.25 1.28 1.27 1.26 1.27 1.25 1.24 1.22 1.20 1.18 1.19 1.19 1.16 Q1 Q2 Q3 Q4 FY 2018E FY 2017 (1) Q1 actual
Slide 19: Q1 2018 Detailed Income Statement and Adjustments
Q1 2018 DETAILED INCOME STATEMENT AND ADJUSTMENTS 19 IN € MILLION thereof Adjustments Impact on EBIT Financial Q1 2018 Q1 2018 Operational FX Result Adjusted Defence and Airbus Helicopters Airbus Space (1) EBIT 199 14 (7) 153 (7) 46 in % of revenues 2.0% 0.1% Interest income 41 41 Interest expenses
Slide 20: Q1 2017 Detailed Income Statement and Adjustments
Q1 2017 DETAILED INCOME STATEMENT AND ADJUSTMENTS 20 IN € MILLION thereof Adjustments Impact on EBIT Financial Q1 2017 Q1 2017 Operational FX Result Adjusted Defence and Space (1) Airbus EBIT 575 (19) 539 55 in % of revenues 5.0% (0.2)% Interest income 39 39 Interest expenses (127) (127) Other Finan
Slide 21: Q1 2018 Key Figures
Q1 2018 KEY FIGURES 21 IN € MILLION Q1 2018 Q1 2017 Revenues 10,119 11,442 EBIT Adjusted 14 (19) EBIT 199 575 Net Income 283 409 FCF before M&A (3,846) (1,599) FCF before M&A and Customer Financing (3,839) (1,269) Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 IN € MILLION Revenues EBIT Adjusted EB
Slide 22: Strong Liquidity Position as at March 2018
STRONG LIQUIDITY POSITION AS AT 31 MARCH 2018 22 € 3.0 bn Credit Facility: Credit Facility (RSCF) Maturity 2021, undrawn Fully committed by 40 banks No financial covenants, no MAC clause € 11.2 bn Financing Liabilities: Financing Liabilities of which long-term : € 8.8 bn Includes € 3.0 bn EM
Slide 23: Detailed Free Cash Flow
DETAILED FREE CASH FLOW 23 IN € MILLION Q1 2018 Q1 2017 Net Cash position at the beginning of the period 13,390 11,113 Gross Cash Flow from Operations (1) 206 230 Change in working capital (3,797) (1,493) Cash used for investing activities (2) (65) 147 of which Industrial Capex (additions) (3) (393)
Slide 24: Net Cash Position
NET CASH POSITION 24 IN € MILLION Mar. 2018 Dec. 2017 Gross Cash 20,923 24,587 Financing Debts (11,154) (11,197) Short-term Financing Debts (2,326) (2,213) Long-term Financing Debts (8,828) (8,984) Reported Net Cash 9,769 13,390 Airbus non-recourse debt 30 29 Net Cash excl. non-recourse 9,799 13,419
Slide 25: Customer Financing Exposure
CUSTOMER FINANCING EXPOSURE 25 IN € MILLION Mar. 2018 Dec. 2017 Mar. 2018 Dec. 2017 Airbus Helicopters Closing rate € 1 = $1.23 $1.20 $ 1.23 $ 1.20 Total Gross Exposure 1,032 1,264 135 135 of which off-balance sheet 31 144 4 4 Estimated value of collateral (754) (953) (62) (64) Net Exposure 278 311
Slide 26: Airbus Customer Financing
AIRBUS CUSTOMER FINANCING 26 IN € BILLION Additions Sell Down Amortization Net change 1.5 1.5 1.0 0.9 1.0 0.9 0.9 0.8 0.8 0.7 Airbus Customer 0.6 0.5 0.6 0.5 0.6 0.6 0.4 0.3 Financing Gross 0.0 Exposure (0.3) (0.5) (0.7) (0.7) (0.2) (0.2) (0.7) (0.7) (0.7) (0.7) (0.6) (0.9) (0.7) (0.2) (1.0) (1.1) (
Slide 27: IFRS 15 Balance Sheet Impact: Key Airbus Considerations
IFRS 15 BALANCE SHEET IMPACT: KEY AIRBUS CONSIDERATIONS 27 Reflects equity impact as of Jan. 1st, 2017 (~ € - 2.1 bn) and subsequent FY 2017 IFRS 15 P&L impact Impacts primarily driven by A350, A400M, NH90 and Tiger Equity impact Quantitative impacts on equity are phasing differences on contracts fr
Slide 28: Balance Sheet Highlights: Assets
BALANCE SHEET HIGHLIGHTS: ASSETS 28 IN € MILLION Mar. 2018 Dec. 2017 Non-current Assets 53,887 53,526 of which Intangible & Goodwill 11,573 11,629 of which Property, plant & equipment 16,502 16,611 of which Investments & Financial assets 5,798 5,821 of which positive hedge mark-to-market 3,790 2,901
Slide 29: Balance Sheet Highlights: Liabilities
BALANCE SHEET HIGHLIGHTS: LIABILITIES 29 IN € MILLION Mar. 2018 Dec. 2017 Total Equity 12,066 10,742 of which OCI (Other Comprehensive Income) 3,983 2,743 of which Non-controlling interests 10 2 Non-current liabilities 41,330 42,162 of which pensions 8,380 8,025 of which other provisions 1,767 1,754
Slide 30: Shareholding Structure as at March 2018
SHAREHOLDING STRUCTURE AS AT 31 MARCH 2018 30 Free Float 73.6% 4.2% 11.1% Shareholder Agreement 26.4% 11.1% SOGEPA 11.1% GZBV 11.1% 73.6% SEPI 4.2% Treasury Shares 0.0% 774,556,062 shares issued as at 31 March 2018
Slide 31: Quarterly Revenues Breakdown (Cumulative)
QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) 31 IN € MILLION Q1 H1 9m FY 2018 2017 2018 2017 2018 2017 2018 2017 Airbus 7,222 8,166 18,182 27,579 43,486 Helicopters 961 1,176 2,716 4,197 6,335 Defence and Space 2,217 2,340 4,900 7,074 10,596 Transversal & Elim. (281) (240) (623) (821) (1,395) Consolida
Slide 32: Quarterly EBIT Adjusted Breakdown (Cumulative)
QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE) 32 IN € MILLION Q1 H1 9m FY 2018 2017 2018 2017 2018 2017 2018 2017 Airbus (41) (103) 257 806 2,383 Helicopters (3) (6) 80 161 247 Defence and Space 112 118 298 343 815 Transversal & Elim. (54) (28) (82) (156) (255) Consolidated Airbus 14 (19) 553 1,154
Slide 33: Quarterly EBIT Breakdown (Cumulative)
QUARTERLY EBIT BREAKDOWN (CUMULATIVE) 33 IN € MILLION Q1 H1 9m FY 2018 2017 2018 2017 2018 2017 2018 2017 Airbus (2) (48) 381 779 2,257 Helicopters (10) (6) 80 161 247 Defence and Space 265 657 832 835 462 Transversal & Elim. (54) (28) (82) (156) (301) Consolidated Airbus 199 575 1,211 1,619 2,665 H
Slide 34: Q1 2018 IFRS vs. APM Cash Flow Reconciliation
Q1 2018 IFRS VS. APM CASH FLOW RECONCILIATION 34 IN € BILLION Q1 2018 IN € BILLION Q1 2018 Cash provided by (used for) operating activities (3.59) Cash provided by (used for) operating activities (3.59) t/o Reimbursement from / contribution to plan assets (0.05) Cash provided by (used for) investing
Slide 35: Glossary on Alternative Performance Measures (APM)
GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM) 35 The following 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 a