Slide 1: Q1 2008 Earnings Conference Call
Q1 2008 Earnings Conference Call, 14th May 2008 Louis Gallois CEO Hans Peter Ring CFO 1 Safe Harbor Statement Certain of the statements contained in this document are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on manageme
Slide 2: Q1 2008 Key Business Highlights
Content Group Highlights Financial Highlights Divisional Performance Outlook and Conclusion 3 Q1 2008 Key Business Highlights Airbus • Commercial momentum: 395 net orders; 3,693 a/c in backlog • Q1 gross orders: 64 A350 XWB; 3 A380; 51 A330 • 123 deliveries in Q1 including 2 A380 • 4 A380 delivered
Slide 3: A380 ramp up review
A380 ramp up review • 2006 recovery programme progressing well but not fully achievable • Very good performance in operations of the 4 a/c delivered • 17 a/c in various stages of production mainly wiring installation and system testing phases • Time and ressources higher than expected • Ramp up : 12
Slide 4: Q1 2008 Financial Highlights and EBIT Bridge
Q1 2008 Financial Highlights ** in €bn Q1 2008 Q1 2007 change Revenues 9.9 8.9 +10% of which Defence 2.0 1.5 +37% EBIT* 0.77 0.09 - Order intake 39.3 10.5 +275% in €bn March 2008 Dec. 2007 change Total Order book 351.5 339.5 +4% of which Defence 58.0 54.5 +6% * pre goodwill impairment and exceptiona
Slide 5: Q1 2008 Financial Highlights; Development of Net Cash
Q1 2008 Financial Highlights Q1 2008 Q1 2007*** in % of in % of €m Revenues €m Revenues EBIT* 769 7.8% 88 1.0% self-financed R&D** 534 5.4% 549 6.1% EBIT* before R&D 1,303 13.2% 637 7.1% Interest result (7) (0.1%) (33) (0.4%) Other financial result (333) (3.4%) (69) (0.8%) Taxes (125) (1.3%) 17 0.2%
Slide 6: Currency Hedge Policy; Power8 Highlights
Currency Hedge Policy • Approx. half of EADS’ US$ revenues naturally hedged by US$ procurement. • In Q1 2008 hedges of $ 4.8 bn* matured at an average hedge rate of 1€ = 1.17 $ • In Q1 2008, new hedges of $ 8.6 bn* were added at an average rate of 1€ = 1.45 $ EADS hedge portfolio, 31st March 2008 ($
Slide 7: Airbus
Content Group Highlights Financial Highlights Divisional Performance Outlook and Conclusion 13 Airbus Revenues up 7% €m Q1 2008 Q1 2007 • Driven by 2 A380 deliveries; growth in SA deliveries (+11 a/c); A400M Power on revenue Deliveries 123 115 recognition but Revenues 7,057 6,606 • Impacted by dolla
Slide 8: MTA and Eurocopter
MTA €m Q1 2008 Q1 2007 Revenues and EBIT*: • Improvement driven by A400M Power- Revenues 636 133 On milestone and C-295 deliveries R&D self-financed 1 4 in % of revenues 0.2% 3.0% Tanker: EBIT* (1) (13) • Surge of order intake : FSTA (3 bn€) in % of revenues and 3 MRTT for Saudi Arabia Order book 23
Slide 9: Astrium and Defence & Security
Astrium €m Q1 2008 Q1 2007 Revenues up 19% • Driven by Paradigm services and increased Revenues 751 629 Ariane 5 production R&D self-financed 14 12 in % of revenues 1.9% 1.9% EBIT* tripled EBIT* 33 10 • Driven by ramp-up of Paradigm Services, in % of revenues 4.4% 1.6% operational improvements in Sp
Slide 10: Other Businesses
Other Businesses Overall €m Q1 2008 Q1 2007 • Revenues and EBIT roughly stable • EADS North America in Other businesses Revenues 297 311 R&D self-financed 2 2 Sogerma in % of revenues 0.7% 0.6% • Stable revenues and positive EBIT EBIT* 19 20 in % of revenues 6.4% 6.4% ATR Order book 2,979 2,581 • 3
Slide 11: 2008 Guidance
2008 Guidance New orders • Above 700 new aircraft orders at Airbus Revenues • EADS revenues above € 40 billion • Based on around 470 Airbus aircraft deliveries EBIT* • EADS EBIT* at € 1.8 billion at end of 2008 closing spot rate of 1.45 USD per Euro • Actuals show good underlying trend but higher ri
Slide 12: Profit & Loss Highlights; Shareholding structure
Profit & Loss Highlights Q1 2008 Q1 2007*** in % of in % of €m Revenues €m Revenues Revenues 9,853 8,934 self-financed R&D** 534 5.4% 549 6.1% EBITDA* 1,178 12.0% 523 5.8% EBIT* 769 7.8% 88 1.0% EBIT* before R&D 1,303 13.2% 637 7.1% Interest result (7) (0.1%) (33) (0.4%) Other financial result (333)
Slide 13: Expected Average Hedge Rates; Airbus Customer Financing
Expected EADS Average Hedge Rates € vs. $ 1.30 1.21 1.20 1.20 1.17 1.19 1.16 1.17 1.11 1.16 1.10 1.10 1.00 Q1 Q2 Q3 Q4 FY 2007 2008e Average FY 2008e 25 Airbus Customer Financing Active exposure management Additions and Disposals to Airbus customer financing gross exposure in $ bn Net Exposure fully
Slide 14: Customer Financing Exposure; EBIT* Calculation
Customer Financing Exposure € million March 2008 Dec. 2007 closing rate 1 € = $ 1.58 $ 1.47 100% AIRBUS Total Gross exposure 795 990 of which off-balance sheet 340 398 Estimated value of collateral (332) (411) Net exposure 463 579 Provision and asset impairment (463) (579) AIRBUS Net exposure after
Slide 15: Restructuring items in EBIT*; Net Income pre-exceptionals
Restructuring items included in EBIT* in €m Q1 2008 Q1 2007** EBIT* 769 88 EBIT* margin (% of revenues) 7.8% 1.0% EADS EBIT* includes the following items Airbus Restructuring 0 (688) DS Restructuring (3) (10) * pre goodwill impairment and exceptionals ** MBDA consolidated at 37.5% in 2008; Q1 2007 f
Slide 16: Net Cash Position; Balance Sheet Highlights: Assets
Net Cash Position in €m March 2008 March 2007* Dec. 2007 Gross cash 12,610 8,558 11,838 Financial Debts Short-term Financial Debts (1,303) (1,846) (1,724) Long-term Financial Debts (2,975) (3,459) (3,090) Reported Net cash 8,332 3,253 7,024 Airbus non-recourse debt 763 1,018 859 Net cash excl. non-r
Slide 17: Balance Sheet Highlights: Liabilities; Quarterly Revenues Breakdown
Balance Sheet Highlights: Liabilities in € m March 2008 Dec. 2007 Total Equity 13,977 13,175 of which OCI (Other Comprehensive Income) 5,552 5,076 of which Minority interests 93 85 Total Non-current liabilities 28,678 28,213 of which pensions 4,363 4,382 of which other provisions 3,838 3,673 of whic
Slide 18: Quarterly EBIT* and Order-intake Breakdown
Quarterly EBIT* Breakdown (cumulative) Q1 H1 9m FY in €m 2008 2007*** 2008 2007*** 2008 2007*** 2008 2007**** Airbus 628 (69) . 19 . (677) . (881) MTA (1) (13) . (29) . (144) . (155) Eurocopter 37 33 . 35 . 113 . 211 Astrium 33 10 . 47 . 71 . 174 DS 33 (5) . 70 . 126 . 345 HQ & others 39 132 . 216 .
Slide 19: Quarterly Order-book Breakdown
Quarterly Order-book Breakdown March June Sept. Dec. in €m 2008 2007** 2008 2007** 2008 2007** 2008 2007*** Airbus 291,116 206,372 . 251,743 . 248,540 . 283,829 MTA 23,068 20,307 . 20,256 . 19,630 . 19,932 Eurocopter 14,461 12,975 . 13,730 . 13,904 . 13,455 Astrium 12,711 12,543 . 13,125 . 12,802 .