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Airbus — Q1 2016 Earnings Presentation
35 slides from Airbus's earnings presentation, 2016
Slide 1: Airbus Group Q1 Results 2016
AIRBUS GROUP Q1 RESULTS 2016 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 2016 agenda
3 Q1 RESULTS 2016 GROUP HIGHLIGHTS DIVISIONAL HIGHLIGHTS GUIDANCE 2016 & KEY TAKEAWAYS
Slide 4: Q1 2016 Highlights
Q1 2016 HIGHLIGHTS 4 Robust commercial backlog of 6,716 aircraft, supporting production plans Q1 financials driven by back-loaded delivery schedule Continued focus on ramp-up and transition Progress on disposals 2016 guidance maintained
Slide 5: Q1 2016 Commercial Positioning
Q1 2016 COMMERCIAL POSITIONING 5 Airbus Group Order Book* Airbus Group External by Region (by value) Revenue Split by Division 10% 6% 21% 32% 11% € 957 bn* t/o Defence € 38 bn 8% € 12 bn t/o Defence € 2 bn 18% 71% 23% Europe North America Airbus Asia / Pacific Middle East Airbus Helicopters Latin Am
Slide 6: Q1 2016 Financial Performance
Q1 2016 FINANCIAL PERFORMANCE 6 Revenues EBIT* before one-off 64 4.13 in € bn / RoS (%) in € bn 5,4% 4,1% 12 12 0,65 0,50 Q1 2015 Q1 2016 Q1 2015 Q1 2016 EPS** before one-off FCF before M&A 3.41 1.2 in € bn -1,1 in € -3,0 0,45 0,38 Q1 2015 Q1 2016 Q1 2015 Q1 2016 FY Results * Pre-goodwill impairment
Slide 7: Q1 2016 Profitability
Q1 2016 PROFITABILITY 7 EBIT* Performance 1,24 Q1 2016 EBIT* reported of € 0.4 bn in € bn Q1 2015 EBIT* reported included € + 0.7 bn from Dassault capital gain Q1 2016 one-offs resulting from: 0,65 0,50 € - 136 m $ PDP mismatch / BS Revaluation 0,37 € 0 m Portfolio (€ 19 m at Airbus offset by
Slide 8: Q1 2016 Cash Evolution
Q1 2016 CASH EVOLUTION 8 IN € BILLION 0.4 - 2.8 - 0.6 - 0.1 - 0.4 Free Cash Flow before M&A 10,0 - 3.0 6,4 Net Cash position Gross Cash Flow Change in Cash used for M&A ** Dividends, Net Cash position Dec. 2015 from Operations Working Capital investing activities Pensions & Q1 2016 before M&A * Othe
Slide 9: Q1 Results 2016 agenda
9 Q1 RESULTS 2016 GROUP HIGHLIGHTS DIVISIONAL HIGHLIGHTS GUIDANCE 2016 & KEY TAKEAWAYS
Slide 10: Airbus
AIRBUS 10 Deliveries by programme IN € MILLION Q1 2016 Q1 2015 Change (Units) Order Intake (net) 10 101 -90.1% 4% 3% (Units) 10% Order Book 6,716 6,353 5.7% Order Intake (net) 4,311 17,217 -75.0% (Value) Order Book 904,589 901,565 0.3% 83% Deliveries (Units) 125 134 -6.7% Single Aisle A330 A380 A350
Slide 11: Airbus Helicopters
AIRBUS HELICOPTERS 11 IN € MILLION Q1 2016 Q1 2015 Change External revenue split Order Intake (net) 51 86 -40.7% (Units) Order Book 826 917 -9.9% 45% Order Intake (net) 1,004 1,428 -29.7% 55% (Value) Order Book 11,615 12,371 -6.1% Deliveries (Units) 56 62 -9.7% Civil Defence Revenues 1,158 1,285 -9.
Slide 12: Airbus Defence & Space
AIRBUS DEFENCE & SPACE 12 IN € MILLION External revenue split Q1 2016 Q1 2015 Change Order Intake (net) 2,515 2,390 5.2% 33% Order Book 42,596 41,854 1.8% 67% Revenues 2,534 2,603 -2.7% R&D expenses** 66 66 0.0% in % of revenues 2.6% 2.5% Platforms Services EBIT* before one off 109 90 21.1% in % of
Slide 13: Q1 Results 2016 agenda
13 Q1 RESULTS 2016 GROUP HIGHLIGHTS DIVISIONAL HIGHLIGHTS GUIDANCE 2016 & KEY TAKEAWAYS
Slide 14: 2016 Guidance
2016 GUIDANCE 14 As the basis for its 2016 guidance, Airbus Group expects the world economy and air traffic to grow in line with prevailing independent forecasts and assumes no major disruptions 2016 earnings and FCF guidance is based on a constant perimeter In 2016, Airbus expects to deliver more
Slide 15: Key Takeaways
KEY TAKEAWAYS 15 2016 Guidance maintained Robust and diversified backlog, supporting production plans Continued focus on ramp-up and transition EPS / FCF growth story confirmed, supported by divestments
Slide 16: Appendix
Q1 RESULTS 2016 APPENDIX AIRBUS GROUP
Slide 17: Strong Liquidity Position as at March 2016
AIRBUS GROUP: STRONG LIQUIDITY POSITION AS AT 31 MARCH 2016 17 € 3 bn Credit Facility: Maturity 2020, undrawn Credit Facility (RSCF) Fully committed by 40 banks No financial covenants, no MAC clause Financing Liabilities: € 11.6 bn Short-term: € 5.3 bn Financing Liabilities Includes € 2.
Slide 18: Expected Airbus Group Average Hedge Rates € vs. $
EXPECTED AIRBUS GROUP AVERAGE HEDGE RATES € VS. $ 18 Active exposure management 1.38 1.36 1.36 1.35 Average 1.34 * Hedge Rates 1.34 1.34 1.33 FY 2015 1.34 1.33 1.32 FY 2016E 1.32 1.31 1.31 1.30 Q1 Q2 Q3 Q4 2016 E FY 2015 * Q1 2016 Actual
Slide 19: Currency Hedge Policy
CURRENCY HEDGE POLICY 19 IN $ BILLION Net Exposure Forward Sales as of March 2016 Collars as of March 2016 Forward Sales and Collars as of December 2015 6,0 4,3 24,3 24,1 4,2 17,3 17,5 8,9 Average hedge 2016 2020 2017 2018 ² 2019 rates remaining 9 months and beyond 1.32 1.29 1.25 1.25 1.24 € vs $ Fo
Slide 20: Q1 2016 Forex EBIT Impact Bridge
Q1 2016 FOREX EBIT* IMPACT BRIDGE 20 IN € BILLION Bridge Hedge rates (from €/$ 1.36 to €/$ 1.34) 0.05 Other one-off forex effect including PDP reversal 0.01 Compared to Q1 2015 0.06 * Pre-goodwill impairment and exceptionals
Slide 21: Q1 2016 Detailed Income Statement and Adjustments
Q1 2016 DETAILED INCOME STATEMENT AND ADJUSTMENTS 21 IN € MILLION thereof one-offs thereof Impact on EBIT* Q1 2016 * Goodwill Impair. Financial Q1 2016 Q1 2016 * Operational FX before & FV dep. Result one-off Airbus AD&S Airbus EBIT 362 365 501 (3) 19 (19) (136) in % of revenues 3.0% 3.0% 4.1% Inter
Slide 22: Q1 2015 Detailed Income Statement and Adjustments
Q1 2015 DETAILED INCOME STATEMENT AND ADJUSTMENTS 22 thereof one-offs IN € MILLION thereof Impact on EBIT* Q1 2015 * Goodwill Impair. Financial Q1 2015 Q1 2015 * Operational HQ FX before & FV dep. Result one-off AD&S Dassault EBIT 1,232 1,241 651 (9) 43 697 (150) 0 in % of revenues 10.2% 10.3% 5.4%
Slide 23: Detailed Free Cash Flow
DETAILED FREE CASH FLOW 23 IN € MILLION Q1 2016 Q1 2015 Net Cash position at the beginning of the period 10,003 9,092 Gross Cash Flow from Operations* 396 610 Change in working capital** (2,814) (1,227) of which Customer Financing (255) (31) Cash used for investing activities*** (713) 1,069 of which
Slide 24: Net Cash Position
NET CASH POSITION 24 IN € MILLION Mar. 2016 Dec. 2015 Gross Cash 17,989 19,128 Financing Debts Short-term Financing Debts (5,241) (2,790) Long-term Financing Debts (6,310) (6,335) Reported Net Cash 6,438 10,003 Airbus non-recourse debt 104 94 Net Cash excl. non-recourse 6,542 10,097
Slide 25: A350 / A400M Provision Consumption
A350 / A400M PROVISION CONSUMPTION* (AS AT 31 DEC. 2015) 25 IN € BILLION 6 5 4 3 2 1 0 Total 2016 2017-2018 >2018 Liquiditated Damages Loss Making Contracts * Including A380 Liquidated Damages
Slide 26: Customer Financing Exposure
CUSTOMER FINANCING EXPOSURE 26 IN € MILLION Airbus Airbus Helicopters Mar. 2016 Dec. 2015 Mar. 2016 Dec. 2015 Closing rate € 1 = $ 1.14 $ 1.09 $ 1.14 $ 1.09 Total Gross Exposure 1,567 1,366 63 69 of which off-balance sheet 56 60 8 8 Estimated value of collateral (1,158) (922) (15) (20) Net Exposure
Slide 27: Airbus Customer Financing
AIRBUS CUSTOMER FINANCING 27 Additions Sell Down Amortization Net change IN $ BILLION 1,5 1,5 1,0 0,9 1,0 0.9 0,8 0,8 0,6 0,5 0,6 0,5 0,6 0,6 0,4 0,3 0,3 (0,0) Airbus Customer (0,3) (0,6) (0,7) (0,2) (0,7) (0,7) (0,0) Financing Gross (0,7) (0,2) (0,2) (0,7) (0,7) (0,9) (1,0) (1,1) (0,1) (0,1) (0,3)
Slide 28: Balance Sheet Highlights: Assets
BALANCE SHEET HIGHLIGHTS: ASSETS 28 IN € MILLION Mar. 2016 Dec. 2015 Non-current Assets 53,045 53,438 of which Intangible & Goodwill 12,358 12,555 of which Property, plant & equipment 16,839 17,127 of which Investments & Financial assets 3,932 3,818 of which positive hedge mark-to-market 1,425 931 o
Slide 29: Balance Sheet Highlights: Liabilities
BALANCE SHEET HIGHLIGHTS: LIABILITIES 29 IN € MILLION Mar. 2016 Dec. 2015 Total Equity 7,863 5,973 of which OCI (Other Comprehensive Income) (2,014) (4,316) of which Non-controlling interests (16) 7 Total Non-current liabilities 44,526 46,700 of which pensions 7,662 7,172 of which other provisions 2
Slide 30: Shareholding Structure as at March 2016
SHAREHOLDING STRUCTURE AS AT 31 MARCH 2016 30 Free Float 0,1% • Institutional Investors & Retail 73.7% 11,0% 11,0% Shareholder Agreement 4,2% • SOGEPA • GZBV 26.2% 73,7% • SEPI Treasury shares • Treasury shares (without economic or voting rights) 0.1% 778,198,822 shares issued as at 31 March 2016
Slide 31: Quarterly Order Intake Breakdown (Cumulative)
QUARTERLY ORDER INTAKE BREAKDOWN (CUMULATIVE) 31 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Airbus 4,311 17,217 46,334 100,061 139,062 Airbus Helicopters 1,004 1,428 2,726 4,013 6,168 Airbus Defence & Space 2,515 2,390 5,371 8,483 14,440 HQ / Elim. (585) (41) (512) (634) (703)
Slide 32: Quarterly Order Book Breakdown (Cumulative)
QUARTERLY ORDER BOOK BREAKDOWN (CUMULATIVE) 32 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Airbus 904,589 901,565 875,018 914,692 952,450 Airbus Helicopters 11,615 12,371 12,004 11,818 11,769 Airbus Defence & Space 42,596 41,854 41,683 41,657 42,861 HQ / Elim. (1,820) (1,226) (1
Slide 33: Quarterly Revenues Breakdown (Cumulative)
QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) 33 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Airbus 8,668 8,565 21,081 31,119 45,854 Airbus Helicopters 1,158 1,285 2,950 4,423 6,786 Airbus Defence & Space 2,534 2,603 5,531 8,383 13,080 HQ / Elim. (177) (375) (669) (960) (1,270) Airb
Slide 34: Quarterly EBIT Breakdown (Cumulative)
QUARTERLY EBIT* BREAKDOWN (CUMULATIVE) 34 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Airbus 290 419 1,424 1,902 2,301 Airbus Helicopters 33 52 162 241 427 Airbus Defence & Space 90 133 (26) 149 745 HQ / Elim. (48) 637 669 654 613 Airbus Group 365 1,241 2,229 2,946 4,086 * Pre-g
Slide 35: Quarterly EBIT Before One-off Breakdown (Cumulative)
QUARTERLY EBIT* BEFORE ONE-OFF BREAKDOWN (CUMULATIVE) 35 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Airbus 407 569 1,533 2,226 2,780 Airbus Helicopters 33 52 162 241 427 Airbus Defence & Space 109 90 267 431 1,060 HQ / Elim. (48) (60) (79) (94) (135) Airbus Group 501 651 1,883