Slide 1: FY 2019 Results, 13 February 2020
13 February 2020 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
Company Business Guidance Highlights Highlights Highlights
Slide 4: FY 2019 Key Topics
FY 2019 Key Topics 4 Record commercial aircraft deliveries Strong underlying financial performance, FY 2019 Guidance achieved € -3.6 bn penalties recognised for agreements with authorities A400M: € -1.2 bn charge; export assumptions revised EBIT reported € 1.3 bn, EPS reported € -1.75 Di
Slide 5: FY 2019 Commercial Positioning
FY 2019 Commercial Positioning 5 Airbus Commercial Aircraft Consolidated Airbus Consolidated Airbus Order Book in units by Programme Order Book in value by Region External Revenue by Division A220 7% Asia Pacific 31% Airbus 77% A320 81% Europe 28% Helicopters 8% A330 4% € 471 bn North America 18% €
Slide 6: FY 2019 Financial Performance
FY 2019 Financial Performance 6 Revenues EBIT Adjusted in € bn in € bn / RoS (%) 9.9% 9.2% 63.7 70.5 6.9 5.8 FY 2018 FY 2019 FY 2018 FY 2019 EPS(1) Adjusted FCF before M&A and Customer Financing in € in € bn 6.07 3.5 5.22 2.9 FY 2018 FY 2019 FY 2018 FY 2019 (1) FY 2019 Average number of shares: 777,
Slide 7: FY 2019 Profitability
FY 2019 Profitability 7 EBIT Performance FY 2019 EBIT Reported of € 1.3 bn in € bn FY 2019 EBIT Adjustments resulting from: € -3,598 m Penalties € -1,212 m A400M charge 5.8 6.9 € -221 m Defence export ban 5.0 € -202 m A380 programme cost 1.3 € -170 m PDP mismatch / BS revaluation EBIT
Slide 8: Currency Hedge Policy
Currency Hedge Policy 8 IN $ BILLION Forward Sales as of Dec. 2019 1.0 1.6 Collars as of Dec. 2019 Forward Sales and Collars as of Dec. 2018 24.0 24.5 22.1 20.7 14.9 12.4 Average hedge rates 2019 2020 2021 2022 2023 2024 and beyond € vs $ 1.24 1.20 1.23 1.23 1.24 1.27 Forwards/Collars (2) ( 1.23 for
Slide 9: FY 2019 Cash Evolution
FY 2019 Cash Evolution 9 IN € BILLION -1.4 -2.0 -0.1 +7.0 -1.3 -1.6 -1.4 Impact from the penalties netted 13.3 12.5 Free Cash Flow before M&A: € + 3.6 bn t/o Customer Financing € 0.1 bn Free Cash Flow before M&A and Customer Financing € + 3.5 bn Net Cash Position IFRS 16 Implementation Gross Cash Ch
Slide 10: Business Highlights
Company Business Guidance Highlights Highlights Highlights
Slide 11: Airbus Commercial Aircraft
11 IN € MILLION FY 2019 FY 2018 Change Deliveries by Programme (Units) Order Intake (net) 768 747 2.8% Units Order Book 7,482 7,577 -1.3% A220 6% Order Intake (net) 65,769 41,519 58.4% A320 74% Value Order Book 424,082 411,659 3.0% A330 6% A350 13% Deliveries Units 863 800 7.9% A380 1% Revenues 54,7
Slide 12: Helicopters
Helicopters 12 IN € MILLION FY 2019 FY 2018 Change External Revenue Split Order Intake (net) 310 381 -18.6% Units Order Book 695 717 -3.1% Civil 45% Order Intake (net) 7,179 6,339 13.3% Defence 55% Value Order Book 16,627 14,943 11.3% Deliveries Units 332 356 -6.7% Revenues 6,007 5,934 1.2% R&D Expe
Slide 13: Defence and Space
Defence and Space 13 IN € MILLION FY 2019 FY 2018 Change External Revenue Split Order Intake (net) Value 8,520 8,441 0.9% Order Book 32,263 35,316 -8.6% Platforms 68% Services 32% Revenues 10,907 11,063 -1.4% R&D Expenses 302 328 -7.9% in % of Revenues 2.8% 3.0% EBIT Adjusted 565 935 -39.6% in % of
Slide 14: Guidance
Company Business Guidance Highlights Highlights Highlights
Slide 15: 2020 Guidance and Dividend Proposal
2020 Guidance and Dividend Proposal 15 As the basis for its 2020 guidance, Airbus assumes: ‒ the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions, including from the coronavirus ‒ the current tariff regime to remain unchanged Airb
Slide 16: Key Priorities
Key Priorities 16 Stabilising the A320 industrial flow Leveraging A220 commercial momentum and reducing recurring cost Improving A350 profitability and adapting A330 rates Capturing growth in military helicopter and services Adapting Defence and Space and Premium AEROTEC cost structure P
Slide 17: Appendix
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Slide 18: Dividend per Share
Dividend per Share 18 IN € [ 1.80 (1) ] 1.65 1.50 Ex-dividend date: Monday 20 April 2020 Record date: Tuesday 21 April 2020 Payment date: Wednesday 22 April 2020 40% 42% FY 2017 FY 2018 FY 2019 (2) Pay-out Ratio (1) Board proposal to be submitted to the AGM 2020. Subject to AGM approval (2) 20
Slide 19: Expected Airbus Average Hedge Rates € vs. $
Expected Airbus Average Hedge Rates € vs. $ 19 Active exposure management 1.34 Average Hedge Rates 1.32 1.32 1.31 1.30 FY 2018 1.24 1.28 1.27 FY 2019 1.24 1.26 FY 2020 1.20 1.24 1.22 1.23 1.22 1.23 (1) 1.21 1.20 1.21 1.20 1.19 1.18 1.16 1.18 1.16 1.14 Q1 Q2 Q3 Q4 FY 2020E FY 2019 FY 2018 (1) Q4 actu
Slide 20: FY 2019 Detailed Income Statement and Adjustments
FY 2019 Detailed Income Statement and Adjustments 20 thereof Adjustments Impact on EBIT FY 2019 Financial FY 2019 IN € MILLION Operational FX Reported Result Adjusted Defence Airbus & Defence Airbus(1) Helicopters and Space(2) and Space(3) EBIT 1,339 6,946 (4,014) (1,415) (8) (170) in % of Revenues
Slide 21: FY 2018 Detailed Income Statement and Adjustments
FY 2018 Detailed Income Statement and Adjustments 21 thereof Adjustments Impact on EBIT FY 2018 Financial FY 2018 IN € MILLION Operational FX Reported Result Adjusted Defence Airbus Helicopters Airbus and Space(1) EBIT 5,048 5,834 (642) (259) (14) 129 in % of Revenues 7.9% 9.2% Interest income 208 2
Slide 22: Q4 2019 Key Figures
Q4 2019 Key Figures 22 IN € MILLION Q4 2019 Q4 2018 Revenues 24,310 23,286 EBIT Adjusted 2,813 3,096 EBIT (2,092) 2,365 Net Income (Loss) (3,548) 1,601 FCF before M&A 8,469 7,333 FCF before M&A and Customer Financing 8,446 7,081 IN € MILLION Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Revenues E
Slide 23: Airbus: Strong Liquidity Position as of December 2019
Airbus: Strong Liquidity Position as of 31 December 2019 23 € 3.0 bn Credit Facility: Credit Facility (RSCF) Maturity 2021, undrawn Fully committed by 40 banks No financial covenants, no MAC clause € 10.1 bn Financing Liabilities: Financing Liabilities of which long-term: € 8.2 bn Includes €
Slide 24: Detailed Free Cash Flow
Detailed Free Cash Flow 24 IN € MILLION FY 2019 FY 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 3,391 5,515 (2) Change in working capital 2,176 (633) (3) Cash used for investing activities (2,092) (1,377)
Slide 25: Net Cash Position
Net Cash Position 25 IN € MILLION Dec. 2019 Dec. 2018 Gross Cash 22,682 22,207 Financing Liabilities (10,148) (8,926) Short-term Financing Liabilities (1,959) (1,463) Long-term Financing Liabilities (8,189) (7,463) Reported Net Cash 12,534 13,281 Airbus non-recourse debt 24 28 Net Cash excl. non-rec
Slide 26: Customer Financing Exposure
Customer Financing Exposure 26 IN € MILLION Dec. 2019 Dec. 2018 Dec. 2019 Dec. 2018 Airbus Helicopters Closing rate € 1 = $ 1.12 $ 1.15 $ 1.12 $ 1.15 Total Gross Exposure 731 802 48 109 of which off-balance sheet 95 28 9 10 Estimated value of collateral (530) (562) (30) (35) Net Exposure 202 240 18
Slide 27: Airbus Customer Financing
Airbus Customer Financing 27 IN € BILLION Additions Sell Down Amortization Net change 0.6 1.0 0.9 0.8 0.3 0.8 0.8 0.7 0.5 0.6 0.6 0.2 0.4 Airbus Customer 0.1 Financing Gross (0.3) (0.2) (0.5) (0.6) Exposure (0.2) (0.7) (0.7) (0.7) (0.7) (0.6) (0.7) (0.2) (1.1) (0.1) (0.1) (0.1) (0.1) (0.2) (0.2) (0.
Slide 28: Balance Sheet Highlights: Assets
Balance Sheet Highlights: Assets 28 IN € MILLION Dec. 2019 Dec. 2018 Non-current Assets 57,686 56,564 of which Intangible & Goodwill 16,591 16,726 of which Property, plant & equipment 17,294 16,773 of which Investments & other long-term financial assets 6,079 5,504 of which Contract assets 91 65 of
Slide 29: Balance Sheet Highlights: Liabilities
Balance Sheet Highlights: Liabilities 29 IN € MILLION Dec. 2019 Dec. 2018 Total Equity 5,990 9,719 of which OCI (Other Comprehensive Income) (523) 134 of which Non-controlling interests 15 (5) Total Non-current liabilities 46,045 44,693 of which Pensions 7,932 6,690 of which Other provisions 4,610 4
Slide 30: Shareholding Structure as at December 2019
Shareholding Structure as at 31 December 2019 30 Free Float 73.9% Shareholder Agreement 26.0% SOGEPA 11.0% GZVB 10.9% SEPI 4.1% Treasury Shares 0.1% 783,173,115 shares issued as at 31 December 2019
Slide 31: Quarterly Revenues Breakdown (Cumulative)
Quarterly Revenues Breakdown (Cumulative) 31 IN € MILLION Q1 H1 9m FY 2019 2018 2019 2018 2019 2018 2019 2018 Airbus 9,697 7,222 24,043 18,546 35,572 30,478 54,775 47,970 Helicopters 1,007 961 2,371 2,388 3,712 3,755 6,007 5,934 Defence and Space 2,112 2,217 5,015 4,652 7,706 7,051 10,907 11,063 Tra
Slide 32: Quarterly EBIT Adjusted Breakdown (Cumulative)
Quarterly EBIT Adjusted Breakdown (Cumulative) 32 IN € MILLION Q1 H1 9m FY 2019 2018 2019 2018 2019 2018 2019 2018 Airbus 536 (41) 2,338 867 3,833 2,340 6,358 4,808 Helicopters 15 (3) 125 135 205 202 422 380 Defence and Space 101 112 233 309 355 409 565 935 Transversal / Elim. (103) (54) (167) (149)
Slide 33: Quarterly EBIT Breakdown (Cumulative)
Quarterly EBIT Breakdown (Cumulative) 33 IN € MILLION Q1 H1 9m FY 2019 2018 2019 2018 2019 2018 2019 2018 Airbus 392 (2) 2,151 773 3,405 2,238 2,205 4,295 Helicopters 9 (10) 124 114 203 179 414 366 Defence and Space (117) 265 (15) 382 83 479 (881) 676 Transversal / Elim. (103) (54) (167) (149) (260)
Slide 34: FY 2019 IFRS vs. APM Cash Flow Reconciliation
FY 2019 IFRS vs. APM Cash Flow Reconciliation 34 IN € BILLION FY 2019 IN € BILLION FY 2019 Cash provided by (used for) operating activities 3.8 Cash provided by (used for) operating activities 3.8 t/o Reimbursement from / contribution to plan assets (1.8) Cash provided by (used for) investing activi
Slide 35: Glossary on Alternative Performance Measures (APM)
Glossary on Alternative Performance Measures (APM) This 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 accordance wi