Airbus Se · EURONEXT:AIR
Airbus — Q1 2014 Earnings Presentation
38 slides from Airbus's earnings presentation, May 13, 2014
Slide 1: Q1 Results 2014
Q1 RESULTS 2014 13 MAY 2014 Harald Wilhelm I 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: Group Highlights
3 Q1 RESULTS 2014 Group Highlights
Slide 4: Q1 2014 Highlights
4 Q1 2014 Highlights Continued commercial aircraft momentum Market evolution On going successes in Space segment Development programmes progressing (A350, A320NEO, EC175…) Focus on execution Ramp up preparation underway (A350, A400M, A320) Restructuring on track and transformation engaged Revenues:
Slide 5: Q1 2014 Commercial Environment
5 Q1 2014 Commercial Environment Airbus Group Order Intake* by Segment Airbus Group Order Book* by Region (by value) (by value) 4% 10% 6% 5% 32% € 21 bn 18% € 683 bn • Asia Pacific • Airbus • Europe t/o Defence € 1.5 bn • Airbus Helicopters t/o Defence € 42 bn • North America • Airbus D&S • Middle-E
Slide 6: Q1 2014 Financial Performance
6 Q1 2014 Financial Performance Revenues EBIT* before one-off Moderate 56 58 Stable 6.2% Growth 5.2% 3.57 2.96 in € bn 44 47 in € bn 58 11 12 13 6.1% 5.5% 4.2% 9 12 10 11 11 0.73 0.70 2 2 2 0.48 Q1'12 FY'12 Q1'13 FY'13 Q1'14 Guidance Q1'12 FY'12 Q1'13 FY'13 Q1'14 Guidance • t/o Defence RoS EPS* befo
Slide 7: Q1 2014 Profitability
7 Q1 2014 Profitability EBIT* performance Q1 2014 EBIT* reported +22% 0.73 0.72 0.70 Q1 2014 one-offs limited to amount to € + 19 m 0.59 from $ PDP Mismatch / BS Revaluation in € bn EBIT* before one-off EBIT* Reported Q1 2013 Q1 2014 EPS performance Q1 2014 Net Income of € 439 m, +93 % 0.54 0.56 0.5
Slide 8: Group Highlights
8 Q1 RESULTS 2014 Group Highlights
Slide 9: Airbus
9 Airbus in € m Q1 2014 Q1 2013 Change Deliveries by Programme (units) restated & pro forma Order Intake (net) 103 410 -74.9% 4% in units 17% Order Book 5,521 4,948 +11.6% • Single Aisle • Long Range Order Intake (net) 17,938 46,668 -61.6% • A380 in value Order Book 628,910 552,509 +13.8% 79% Delive
Slide 10: Airbus Helicopters
10 Airbus Helicopters in € m Q1 2014 Q1 2013 Change External Revenue Split Order Intake (net) 78 51 +52.9% in units Order Book 999 1,063 -6.0% • Civil Order Intake (net) 1,202 804 +49.5% 46% 54% • Defence in value Order Book 12,439 12,708 -2.1% Deliveries (units) 74 58 +27.6% Revenues 1,182 1,038 +1
Slide 11: Airbus Defence & Space
11 Airbus Defence & Space in € m Q1 2014 Q1 2013 Change External Revenue Split Restated & pro forma Order Intake (net) 2,068 2,160 -4.3% 23% Order Book 42,588 43,894 -3.0% • Platforms • Services Revenues 2,743 2,664 +3.0% 77% R&D expenses 76 65 +16.9% in % of revenues 2.8% 2.4% EBIT* before one-off
Slide 12: Group Highlights
12 Q1 RESULTS 2014 Group Highlights
Slide 13: Guidance 2014
13 Guidance 2014 2014 Guidance is based on $/€ 1.35 as average rate Airbus Airbus deliveries about the same level as 2013, including first A350 delivery Orders & Deliveries (2013: 626 a/c); book to bill > 1 Revenues Airbus Group targets revenues to be stable with 2013 Using EBIT* before one-off, Air
Slide 14: Appendix
14 Q1 RESULTS 2014 Appendix AIRBUS GROUP
Slide 15: Currency Hedge Policy
15 Currency Hedge Policy Expected exposure in US$ bn 24.3* Trend (indicative) 6.0 • Forward Sales • Total Dec. 2013 21.7 18.4 17.8 10.4 3.8 Average hedge rates 2014 2015 2016 2017 2018+ 1.34 1.35 1.33 1.32 1.33 € vs $ For remaining 9 months ( FY 2014e 1.35) ( 1.35 in Dec. 13 ) ( 1.32 in Dec. 13 ) (
Slide 16: Expected Airbus Group Average Hedge Rates € vs. $
16 Expected Airbus Group Average Hedge Rates € vs. $ Active exposure management $/€ 1.40 1.38 1.38 Average Rates 1.37* 1.36 1.36 1.36 1.36 FY 2013 1.37 1.35 FY 2014E 1.35 1.35 1.34 1.33 1.32 Q1 Q2 Q3 Q4 FY 2013 2014 E * Q1 2014 actual
Slide 17: Q1 2014 Forex EBIT Impact Bridge
17 Q1 2014 Forex EBIT* Impact Bridge in € bn Bridge Hedge rates ($/€ 1.38 to $/€ 1.37) 0.02 Other one-off forex effect including PDP reversal 0.15 Compared to Q1 2013 0.17 * Pre-goodwill impairment and exceptionals
Slide 18: Q1 2014 Detailed Income Statement and Adjustments
18 Q1 2014 Detailed Income Statement and Adjustments thereof thereof Impact on EBIT* Goodwill in € m Financial Q1 2014* Impair. FX Q1 2014 Q1 2014* result before & Fair one-off one-off one-off value dep. EBIT* 709 -10 719 19 700 in % of revenues 5.6% 5.7% 5.5% Interest income 36 36 36 Interest expen
Slide 19: Q1 2013 Detailed Income Statement and Adjustments
19 Q1 2013 Detailed Income Statement and Adjustments thereof thereof Impact on EBIT* Goodwill Q1 2013* in € m OPERATI Financial Q1 2013 Impair. FX before Q1 2013* ONAL result Adjusted & Fair one-off one-off one-offs one-off value dep. Adjusted Airbus EBIT* 579 -10 589 -14 -131 734 in % of revenues 4
Slide 20: Q1 2014 Cash Evolution
20 Q1 2014 Cash Evolution in € bn Free Cash Flow* before Acquisitions -2.0 * Excluding contribution to plan assets of pension schemes and change of securities & excl. realized fx results on Treasury swaps in Q1 2014 - prior year not restated (€ -19 m Q1 2013) ** Includes customer financing in other
Slide 21: Detailed Free Cash Flow
21 Detailed Free Cash Flow in € m Q1 2014 Q1 2013 restated & pro forma Net Cash position at the beginning of the period 8,454 11,724 Gross Cash Flow from Operations* 1,008 656 Change in working capital** (2,545) (3,117) of which Customer Financing (138) (73) Cash used for investing activities (497)
Slide 22: Net Cash Position
22 Net Cash Position in € m Dec. 2013 Mar. 2014 Adjusted Gross Cash 13,154 14,084 Financing Debts Short-term Financing Debts (2,794) (1,826) Long-term Financing Debts (3,813) (3,804) Reported Net Cash 6,547 8,454 Airbus non-recourse debt 51 50 Net Cash excl. non-recourse 6,598 8,504 2013 figures res
Slide 23: Strong Liquidity Position as at 31 March 2014
23 Airbus Group: Strong Liquidity Position* as at 31 March 2014 € 3.0 bn Maturity 2018 Undrawn Credit Facility (RSCF) Fully committed by 39 banks No financial covenants No MAC clause € 6.6 bn EMTN programme & USD Bond (144A/RegS) ** Financing Liabilities Long term rating : (incl. € 1.5 bn liabilitie
Slide 24: Airbus Programme Provision Consumption
24 Airbus Programme Provision Consumption (as at 31 Dec. 2013) in € bn 5 4 3 2 1 0 Total < 2016 * 2016 - 2017 > 2017 • Liquidated Damages • LMC * Includes € 434 m A350 charge booked in Q4 2013
Slide 25: Customer Financing Exposure
25 Customer Financing Exposure in € m 100% Airbus 100% Eurocopter Mar. 2014 Dec. 2013 Mar. 2014 Dec. 2013 Closing rate € 1 = $ 1.38 $ 1.38 Total Gross exposure 1,319 1,193 85 84 of which off-balance sheet 90 91 13 14 Estimated value of collateral (979) (851) (43) (41) Net exposure 340 342 42 43 Prov
Slide 26: Airbus Customer Financing
26 Airbus Customer Financing Additions and Disposals 2.5 to Airbus customer financing gross exposure in $ bn Additions Sell Down Amortisation 1.5 1.5 1.5 1.0 0.9 1.0 0.8 0.8 Active 0.5 0.6 0.5 0.4 0.3 0.6 0.5 0.6 (0.0) (0.2) (1.0) (1.1) exposure (0.9) (0.7) (0.7) (1.3) (2.2) (0.3) (0.7) 0.2 -0.5 (0.
Slide 27: Balance Sheet Highlights: Assets
27 Balance Sheet Highlights: Assets in € m Dec. 2013 Mar. 2014 Adjusted Non-current Assets 46,048 45,526 of which Intangible & Goodwill 12,508 12,500 of which Property, plant & equipment 15,682 15,585 of which Investments & Financial assets 5,571 5,614 of which positive hedge mark-to-market 1,949 1,
Slide 28: Balance Sheet Highlights: Liabilities
28 Balance Sheet Highlights: Liabilities in € m Dec. 2013 Mar. 2014 Adjusted Total Equity 11,396 10,906 of which OCI (Other Comprehensive Income) 2,846 2,929 of which Non-controlling interests 39 42 Total Non-current liabilities 33,505 33,017 of which pensions 5,921 5,866 of which other provisions 3
Slide 29: Shareholding Structure as of 31 March 2014
29 Shareholding Structure as of 31 March 2014 0.1% 11.0% 2% Shareholder Agreement 5% 15% 10.9% • SOGEPA 33% • GZBV 26.0% 4.1% • SEPI 19% 26% Free Float 73.9% • Institutional Investors & Retail • Treasury shares* (without economic or voting rights) 783,639,993 shares outstanding as at 31 March 2014 *
Slide 30: Quarterly Order Intake Breakdown (cumulative)
30 Quarterly Order Intake Breakdown (cumulative) in € m Q1 H1 9m FY 2013 2013 2013 2013 2014 pro forma & 2014 pro forma & 2014 pro forma & 2014 pro forma & restated restated restated restated Airbus 17,938 46,668 89,302 125,964 199,261 Airbus Helicopters 1,202 804 2,448 4,177 5,775 Airbus Defence &
Slide 31: Quarterly Order Book Breakdown (cumulative)
31 Quarterly Order Book Breakdown (cumulative) in € m Q1 H1 9m FY 2013 2013 2013 2013 2014 pro forma & 2014 pro forma & 2014 pro forma & 2014 pro forma & restated restated restated restated Airbus 628,910 552,509 573,829 581,034 625,595 Airbus Helicopters 12,439 12,708 12,806 12,986 12,420 Airbus De
Slide 32: Quarterly Revenues Breakdown (cumulative)
32 Quarterly Revenues Breakdown (cumulative) in € m Q1 H1 9m FY 2013 2013 2013 2013 2014 pro forma & 2014 pro forma & 2014 pro forma & 2014 pro forma & restated restated restated restated Airbus 8,937 8,759 18,102 27,328 39,494 Airbus Helicopters 1,182 1,038 2,584 4,132 6,297 Airbus Defence & Space
Slide 33: Quarterly EBIT Breakdown (cumulative)
33 Quarterly EBIT* Breakdown (cumulative) in € m Q1 H1 9m FY 2013 2013 2013 2013 2014 pro forma & 2014 pro forma & 2014 pro forma & 2014 pro forma & restated restated restated restated Airbus 546 463 1,095 1,523 1,592 Airbus Helicopters 58 20 128 217 397 Airbus Defence & Space 85 84 216 356 659 HQ/E
Slide 34: Quarterly EBIT before one-off Breakdown (cumulative)
34 Quarterly EBIT* before one-off Breakdown (cumulative) in € m Q1 H1 9m FY 2013 2013 2013 2013 2014 pro forma & 2014 pro forma & 2014 pro forma & 2014 pro forma & restated restated restated restated Airbus 527 608 1,231 1,712 2,213 Airbus Helicopters 58 20 128 217 397 Airbus Defence & Space 85 84 2
Slide 35: Airbus Group Q1 2013 restatements
35 Airbus Group Q1 2013 restatements Order Intake Q1 2013 Movements Airbus Group Divisions restated & EADS Divisions Movements restructuring Airbus Group Divisions restated JV accounting proforma Total old Airbus Airbus Airbus Total new segments divisions Defence & Total in € m Military Elim in € m
Slide 36: Airbus Group Q1 2013 restatements
36 Airbus Group Q1 2013 restatements Revenues Q1 2013 Movements Airbus Group Divisions restated & EADS Divisions Movements restructuring Airbus Group Divisions restated JV accounting proforma Total old Airbus Airbus Airbus Total new segments divisions Defence & Total in € m Military Elim in € m in €
Slide 37: Airbus Group FY 2013 restatements
37 Airbus Group FY 2013 restatements Order Intake FY 2013 Movements Airbus Group Divisions restated & EADS Divisions Movements restructuring Airbus Group Divisions restated JV accounting proforma Total old Airbus Airbus Airbus Total new segments divisions Defence & Total in € m Military Elim in € m
Slide 38: Airbus Group FY 2013 restatements
38 Airbus Group FY 2013 restatements Revenues FY 2013 Movements Airbus Group Divisions restated & EADS Divisions Movements restructuring Airbus Group Divisions JV accounting proforma Total old Airbus Airbus Airbus Total new segments divisions Defence & Total in € m Military Elim in € m in € m Space