Airbus Se · EURONEXT:AIR
Airbus — H1 2019 Earnings Presentation
34 slides from Airbus's earnings presentation, Jul 31, 2019
Slide 1: H1 2019 Results
31 July 2019 Guillaume Faury | Chief Executive Officer Dominik Asam | Chief Financial Officer
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: Company Highlights, Business Highlights, Guidance
Company Business Guidance Highlights Highlights Highlights
Slide 4: H1 2019 Highlights
4 H1 2019 HIGHLIGHTS Robust commercial aircraft environment H1 2019 financials mainly reflect A320 ramp-up and neo transition Focus on securing FY deliveries, which remains challenging On that basis, 2019 Guidance maintained
Slide 5: H1 2019 Commercial Positioning
5 H1 2019 COMMERCIAL POSITIONING Consolidated Airbus Order Book Consolidated Airbus by Division External Revenue by Division H1 2019 Order Intake (net) 88 Airbus (in units) Order Book 7,276 Order Intake (net) 123 € 30.9 bn Helicopters (in units) t/o defence Order Book 697 € 4.1 bn Defence and Space
Slide 6: H1 2019 Financial Performance
6 H1 2019 FINANCIAL PERFORMANCE Revenues EBIT Adjusted in € bn in € bn / RoS (%) 8.2% 30.9 4.7% 2.5 25.0 1.2 H1 2018 H1 2019 H1 2018 H1 2019 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn 2.25 (4.0) (4.0) 0.96 H1 2018 H1 2019 H1 2018 H1 2019 (1) H1 2019 Average number of shares:
Slide 7: H1 2019 Profitability
7 H1 2019 PROFITABILITY EBIT Performance in € bn H1 2019 EBIT Reported of € 2.1 bn H1 2019 EBIT Adjustments resulting from: € – 208 m Defence export ban 2.53 € – 136 m A380 programme cost 2.09 1.16 1.12 € – 90 m Others € – 2 m PDP mismatch / BS revaluation EBIT Adjusted EBIT Reported H1 2018 H1 2019
Slide 8: Currency Hedge Policy
8 CURRENCY HEDGE POLICY IN $ BILLION Forward Sales as of June 2019 Collars as of June 2019 3.9 Forward Sales and Collars as of Dec. 2018 13.1 1.7 22.3 20.0 14.7 15.0 9.9 2019 2020 2021 2022 2023 Average hedge rates remaining 6 months and beyond € vs $ 1.19 1.23 1.24 1.25 1.26 Forwards/Collars (2) (
Slide 9: H1 2019 Cash Evolution
9 H1 2019 CASH EVOLUTION IN € BILLION 2.8 -1.4 -6.1 -0.7 -0.1 (3) 13.3 -1.3 0.0 Free Cash Flow before M&A : € - 4.0 bn t/o Customer Financing: € 0.0 bn 6.6 Free Cash Flow before M&A and Customer Financing € - 4.0 bn Net Cash IFRS 16 Gross Cash Change in Cash used for M&A (2) Shareholder Pensions & N
Slide 10: Company Highlights, Business Highlights, Guidance
Company Business Guidance Highlights Highlights Highlights
Slide 11: Airbus commercial aircraft: revenues and EBIT Adjusted
11 IN € MILLION H1 2019 H1 2018 Change Deliveries by Programme (units) Order Intake (net) 88 206 -57.3% Units A320 76% Order Book 7,276 7,168 1.5% A350 14% A220 5% Deliveries (units) 389 303 28.4% A330 4% Revenues 24,043 18,546 29.6% A380 1% R&D Expenses 1,008 975 3.4% in % of Revenues 4.2% 5.3% EBI
Slide 12: Helicopters
12 HELICOPTERS IN € MILLION H1 2019 H1 2018 Change External Revenue Split Order Intake (net) 123 143 -14.0% Units Civil 53% Order Book 697 694 0.4% Defence 47% Deliveries (units) 143 141 1.4% Revenues 2,371 2,388 -0.7% R&D Expenses 143 147 -2.6% in % of Revenues 6.0% 6.2% EBIT Adjusted 125 135 -7.4%
Slide 13: Defence and Space
13 DEFENCE AND SPACE IN € MILLION H1 2019 H1 2018 Change External Revenue Split Order Intake (net) Value 4,220 3,184 32.5% Platforms 71% Services 29% Revenues 5,015 4,652 7.8% R&D Expenses 138 136 1.5% in % of Revenues 2.8% 2.9% EBIT Adjusted 233 309 -24.6% in % of Revenues 4.6% 6.6% EBIT (15) 382 N
Slide 14: Company Highlights, Business Highlights, Guidance
Company Business Guidance Highlights Highlights Highlights
Slide 15: 2019 Guidance
15 2019 GUIDANCE 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 commercial aircraft deliveries
Slide 16: Key Priorities
16 KEY PRIORITIES Deliver on 2019 commitments Ramp-up A320 Improve A350 margins Improve programme execution across businesses Services, Digital and Innovation Deliver Earnings and FCF growth potential
Slide 17: Appendix
AIRBUS L117 Results 2019 Appendix AIRBUS
Slide 18: Expected Airbus Average Hedge Rates € vs. $
18 EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $ Active exposure management 1.34 Average 1.32 1.32 Hedge Rates 1.31 1.30 FY 2018 1.24 1.28 1.27 FY 2019E 1.23 1.26 1.24 1.22 1.23 (1) 1.20 1.20 1.18 1.20 1.18 1.18 1.16 1.14 Q1 Q2 Q3 Q4 2019 E FY 2018 (1) Q2 actual
Slide 19: H1 2019 Detailed Income Statement and Adjustments
19 H1 2019 DETAILED INCOME STATEMENT AND ADJUSTMENTS IN € MILLION thereof Adjustments Impact on EBIT Financial H1 2019 H1 2019 Operational FX Result Adjusted Defence and Airbus + Defence Airbus Helicopters Space(1) and Space(2) EBIT 2,093 2,529 (205) (1) (228) (2) in % of Revenues 6.8% 8.2% Interest
Slide 20: H1 2018 Detailed Income Statement and Adjustments
20 H1 2018 DETAILED INCOME STATEMENT AND ADJUSTMENTS IN € MILLION thereof Adjustments Impact on EBIT Financial H1 2018 H1 2018 Operational FX Result Adjusted Defence and Airbus + Defence Airbus Helicopters Space(1) and Space(2) EBIT 1,120 1,162 (40) (21) 59 (40) in % of Revenues 4.5% 4.7% Interest i
Slide 21: Q2 2019 Key Figures
21 Q2 2019 KEY FIGURES IN € MILLION Q2 2019 Q2 2018 Revenues 18,317 14,851 EBIT Adjusted 1,980 1,148 EBIT 1,912 921 Net Income 1,157 213 FCF before M&A 395 (223) FCF before M&A and Customer Financing 360 (129) Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 IN € MILLION Revenues EBIT Adjusted EBIT A
Slide 22: Airbus: Strong Liquidity Position as of June 2019
22 AIRBUS: STRONG LIQUIDITY POSITION AS OF 30 JUNE 2019 € 3.0 bn Credit Facility: Credit Facility (RSCF) Maturity 2021, undrawn Fully committed by 40 banks No financial covenants, no MAC clause Financing Liabilities: € 11.3 bn of which long-term : € 8.6 bn Includes € 3.0 bn EMTN, € 0.5 bn Fi
Slide 23: Detailed Free Cash Flow
23 DETAILED FREE CASH FLOW IN € MILLION H1 2019 H1 2018 Net Cash position at the beginning of the period 13,281 13,391 First time impact of IFRS 16 (1,352) - (1) Gross Cash Flow from Operations 2,781 1,185 (2) Change in working capital (6,088) (4,501) (3) Cash used for investing activities (809) (48
Slide 24: Net Cash Position
24 NET CASH POSITION IN € MILLION June 2019 Dec. 2018 Gross Cash 17,849 22,207 Financing Debts (11,284) (8,926) Short-term Financing Debts (2,649) (1,463) Long-term Financing Debts (8,635) (7,463) Reported Net Cash 6,565 13,281 Airbus non-recourse debt 23 28 Net Cash excl. non-recourse 6,588 13,309
Slide 25: Customer Financing Exposure
25 CUSTOMER FINANCING EXPOSURE IN € MILLION June 2019 Dec. 2018 June 2019 Dec. 2018 Airbus Helicopters Closing rate € 1 = $ 1.14 $ 1.15 $ 1.14 $ 1.15 Total Gross Exposure 866 802 111 109 of which off-balance sheet 104 28 10 10 Estimated value of collateral (613) (562) (37) (35) Net Exposure 253 240
Slide 26: Airbus Customer Financing
26 AIRBUS CUSTOMER FINANCING Additions Sell Down Amortization Net change IN € BILLION 1.0 0.8 0.9 0.8 0.8 0.7 0.6 0.6 0.6 0.5 0.3 0.1 Airbus Customer (0.2) 0.1 Financing Gross (0.2) (0.3) (0.7) (0.5) (0.0) Exposure (0.1) (0.1) (0.6) (0.7) (0.6) (0.7) (0.7) (1.1) (0.7) (0.1) (0.1) (0.1) (0.2) (0.2) (
Slide 27: Balance Sheet Highlights: Assets
27 BALANCE SHEET HIGHLIGHTS: ASSETS IN € MILLION June 2019 Dec. 2018 Non-current Assets 56,896 56,564 of which Intangible & Goodwill 16,607 16,726 of which Property, plant & equipment 17,274 16,773 of which Investments & Financial assets 5,696 5,504 of which Contract assets 71 65 of which positive h
Slide 28: Balance Sheet Highlights: Liabilities
28 BALANCE SHEET HIGHLIGHTS: LIABILITIES IN € MILLION June 2019 Dec. 2018 Total Equity 7,432 9,719 of which OCI (Other Comprehensive Income) 253 134 of which Non-controlling interests (2) (5) Total Non-current liabilities 48,532 44,693 of which Pensions 9,776 6,690 of which Other provisions 4,689 4,
Slide 29: Shareholding Structure as at June 2019
29 SHAREHOLDING STRUCTURE AS AT 30 JUNE 2019 Free Float (73.7%) Shareholder Agreement (26.2%) SOGEPA (11.0%) GZBV (11.0%) SEPI (4.2%) Treasury Shares (0.1%) 778,096,721 shares issued as at 30 June 2019
Slide 30: Quarterly Revenues Breakdown (Cumulative)
30 QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) IN € MILLION Q1 H1 9m FY 2019 2018 2019 2018 2019 2018 2019 2018 Airbus 9,697 7,222 24,043 18,546 30,478 47,970 Helicopters 1,007 961 2,371 2,388 3,755 5,934 Defence and Space 2,112 2,217 5,015 4,652 7,051 11,063 Transversal & Elim. (267) (281) (563) (616
Slide 31: Quarterly EBIT Adjusted Breakdown (Cumulative)
31 QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE) IN € MILLION Q1 H1 9m FY 2019 2018 2019 2018 2019 2018 2019 2018 Airbus 536 (41) 2,338 867 2,340 4,808 Helicopters 15 (3) 125 135 202 380 Defence and Space 101 112 233 309 409 935 Transversal & Elim. (103) (54) (167) (149) (213) (289) Consolidated Ai
Slide 32: Quarterly EBIT Breakdown (Cumulative)
32 QUARTERLY EBIT BREAKDOWN (CUMULATIVE) IN € MILLION Q1 H1 9m FY 2019 2018 2019 2018 2019 2018 2019 2018 Airbus 392 (2) 2,151 773 2,238 4,295 Helicopters 9 (10) 124 114 179 366 Defence and Space (117) 265 (15) 382 479 676 Transversal & Elim. (103) (54) (167) (149) (213) (289) Consolidated Airbus 18
Slide 33: H1 2019 IFRS vs. APM Cash Flow Reconciliation
33 H1 2019 IFRS VS. APM CASH FLOW RECONCILIATION IN € BILLION IN € BILLION H1 2019 H1 2019 Cash provided by (used for) operating activities (3.4) Cash provided by (used for) operating activities (3.4) t/o Reimbursement from / contribution to plan assets (0.1) Cash provided by (used for) investing ac
Slide 34: Glossary on Alternative Performance Measures (APM)
34 GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM) 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