Slide 1: H1 2019 Roadshow Presentation
H1 2019 ROADSHOW PRESENTATION Paris 1 October 2019
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: Airbus at a Glance – as of FY18
3 AIRBUS AT A GLANCE – AS OF FY18 Deliveries by Programme Airbus (units) A320 78% Consolidated Airbus Passenger Aircraft, A350 12% External Revenue by Division Freighter Conversion, A330 6% Services A220 3% A380 1% Helicopters External Revenue Split € 63.7 bn Platforms Civil / Parapublic and 59% t/o
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: Market Demand
H1 2019 Market Product H1 2019 Demand Positioning Review ROADSHOW PRESENTATION
Slide 7: A Robust Commercial Aircraft Environment
7 A ROBUST COMMERCIAL AIRCRAFT ENVIRONMENT 4.3% 25,000 annual Grow growth 39,210 Deliveries 14,210 22,680 Replace Fleet in service 8,470 ~39k Stay New deliveries 2019 2038 Strong & Resilient passenger traffic growth: ~40% of deliveries for replacement, ~60% for growth Notes: Passenger aircraft (≥100
Slide 8: Long-Term Growth Fuelled by Middle-Class Expansion in Emerging Economies
8 LONG-TERM GROWTH FUELLED BY MIDDLE-CLASS EXPANSION IN EMERGING ECONOMIES 2018 trips per capita 100 100 Bubble Bubble size size proportiona proportional to to population population Africa Africa Asia/Pacific 10 Asia/Pacific 10 CIS CIS Europe Europe Latin America Middle LatinEast America 1 0 50 100
Slide 9: Product Positioning
H1 2019 Market Product H1 2019 Demand Positioning Review ROADSHOW PRESENTATION
Slide 10: Competitive Aircraft Portfolio Underpins Record Backlog
10 COMPETITIVE AIRCRAFT PORTFOLIO UNDERPINS RECORD BACKLOG Solid and well diversified Backlog* 7,276 aircraft 23% 16% 13% 17% 42% Europe 25% North & CIS 8% 8% America Middle-East Asia Pacific 1% 3% 8% 7% Africa Latin America % Backlog as of end of June 2019 % Share of 2019-2038 new deliveries (GMF 2
Slide 11: Steady Ramp-Up in a Robust Commercial Environment
11 STEADY RAMP-UP IN A ROBUST COMMERCIAL ENVIRONMENT Backlog O&D 8,000 1,600 7,000 1,400 6,000 1,200 5,000 1,000 4,000 800 800 3,000 688 718 600 588 626 629 635 2,000 498 510 534 400 434 453 483 378 1,000 320 200 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Book-to-
Slide 12: Helicopters: Market and Product Positioning
12 HELICOPTERS: MARKET AND PRODUCT POSITIONING CIVIL & PARAPUBLIC MILITARY AIRCRAFT Demand impacted by softness in O&G Military market supported by growing Defence MARKET budgets LT market potential: ~ 22k new h/c in next 20 years Successful campaigns in 2018 UAM new market Product renewal strategy:
Slide 13: Defence and Space: Market and Product Positioning
13 DEFENCE AND SPACE: MARKET AND PRODUCT POSITIONING MILITARY AIRCRAFT SPACE SYSTEMS CIS* UAS* Geopolitical instability leading Space spending on the rise National sovereignty demands Strong need for investment to increased security needs digital solutions, secured and promising growth potential Dyn
Slide 14: Leveraging Digital in All Areas of Our Business
14 LEVERAGING DIGITAL IN ALL AREAS OF OUR BUSINESS Skywise Data exploitation Connectivity Driving further industrial efficiency Improving reliability of assets in use for customer benefit Generating new business opportunities
Slide 15: H1 2019 Review
H1 2019 Market Product H1 2019 Demand Positioning Review ROADSHOW PRESENTATION
Slide 16: Key Programme Update
16 KEY PROGRAMME UPDATE • Programme fully consolidated into Airbus since July 1st 2018 • 78 aircraft now in operation. Customer interest confirmed with 95 firm orders and A220 commitments at Le Bourget • Focusing on commercial momentum, production ramp-up and cost reduction • Backlog of 5,800+ aircr
Slide 17: H1 2019 Financial Performance
17 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 18: H1 2019 Profitability
18 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 201
Slide 19: Currency Hedge Policy
19 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 20: H1 2019 Cash Evolution
20 H1 2019 CASH EVOLUTION IN € BILLION 2.8 -1.4 -6.1 (3) -0.7 -0.1 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 21: 2019 Guidance
21 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 22: Key Priorities
22 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 23: Deliver EPS & FCF Growth Potential
23 DELIVER EPS & FCF GROWTH POTENTIAL 2018 - 2021 EPS FCF Future Growth Growth Growth Potential A320neo EPS Growth A350 Volume & Price Margin improvement A350 A400M* Turning Profitable 2021+ A320 Higher Rate potential Boost A220** Competitiveness Boost Investment in Working Capital Competitiveness D