Slide 1: FY Results 2014
1 FY RESULTS 2014 27 FEBRUARY 2015 Tom Enders I Chief Executive Officer 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: FY Results 2014 agenda
3 FY RESULTS 2014 Group Highlights Divisional Highlights Guidance 2015 & Dividend
Slide 4: FY 2014 Highlights – Focus on Execution
4 FY 2014 HIGHLIGHTS – FOCUS ON EXECUTION Strong financial performance Revenues: € 61 bn, +5% vs. 2013 EBIT* before one off: € 4.1 bn, +15% vs. 2013 EPS: € 2.99, +61% vs. 2013 FCF: € 2.0 bn, up € + 2.8 bn vs. 2013 Proposed DPS: € 1.20, +60% vs. 2013 Strong operational performance and strat
Slide 5: FY 2014 Commercial Environment
5 FY 2014 COMMERCIAL ENVIRONMENT Airbus Group Airbus Group Airbus Group Order Intake* by Segment (by value) Order Book Coverage Order Book* by Region (by value) Airbus D&S Other countries Airbus Helicopters No of years Latin America 3% 7% 9% 10.2 5% Middle-East 31% Asia Pacific 13% € 166 bn € 858 bn
Slide 6: FY 2014 Financial Performance
6 FY 2014 FINANCIAL PERFORMANCE Revenues EBIT* before one-off 61 6.7% 56 58 6.1% 4.07 50 44 47 5.2% 3.54 in € bn / RoS (%) 2.96 in € bn 12 11 11 FY'12 FY'13 FY'14 FY'12 FY'13 FY'14 • t/o Defence EPS** before one-off FCF before M&A *** 3.36 1.4 in € bn in € 1.1 2.81 2.21 -0.8 FY'12 FY'13 FY'14 FY'12
Slide 7: FY 2014 Profitability
7 FY 2014 PROFITABILITY EBIT* performance 4.07 4.04 3.54 FY 2014 EBIT* reported +54% FY 2014 one-offs resulting from: 2.62 € - 551 m A400M provision € + 383 m Divestments € + 142 m $ PDP mismatch / BS Revaluation in € bn EBIT* before one-off EBIT* Reported € - 26 m Net one-off FY 2013 FY 2
Slide 8: Currency Hedge Policy
8 CURRENCY HEDGE POLICY in US$ bn 24.3* • Forward Sales as of Dec 2014 • As of Dec. 2013 25.0 22.7 20.7 12.6 7.2 0.0 Average hedge rates 2014 2015 2016 2017 2018 2019 and beyond 1.35 1.35 1.33 1.32 1.33 1.36 € vs $ (1.35 in Dec. 13) ( 1.35 in Dec. 13 ) ( 1.32 in Dec. 13 ) ( 1.32 in Dec. 13 ) ( 1.33
Slide 9: FY 2014 Cash Evolution
9 FY 2014 CASH EVOLUTION in € bn Free Cash Flow* before M&A +1.1 * Excluding realised FX results on Treasury swaps in FY 2014 - prior year not restated (€ 54 m FY 2013); ** Includes customer financing in other assets and liabilities of € + 0.1 bn *** thereof capex of € - 2.5 bn; **** M&A transaction
Slide 10: Strong Liquidity Position as at 31 December 2014
10 AIRBUS GROUP: STRONG LIQUIDITY POSITION AS AT 31 DECEMBER 2014 € 3.0 bn Maturity 2019*, undrawn Fully committed by 40 banks Credit Facility (RSCF) No financial covenants, no MAC clause Maturities: € 7.3 bn Short-term € 1.0 bn Long-term € 6.3 bn Financing Liabilities Includes Bonds: € 3 bn EMTN, $
Slide 11: FY Results 2014 agenda
11 FY RESULTS 2014 Group Highlights Divisional Highlights Guidance 2015 & Dividend
Slide 12: Airbus
12 AIRBUS in € m FY 2014 FY 2013 Change restated & pro forma Deliveries by Programme (units) Order Intake (net) 1,456 1,503 -3.1% A380 in units 5% Order Book 6,386 5,559 +14.9% Long range & A350 17% Order Intake (net) 150,085 199,261 -24.7% in value Order Book 803,633 625,595 +28.5% Single Aisle 78%
Slide 13: Airbus Helicopters
13 AIRBUS HELICOPTERS in € m FY 2014 FY 2013 Change restated & pro forma External Revenue Split Order Intake (net) 369 422 -12.6% in units Order Book 893 995 -10.3% Defence Order Intake (net) 5,469 5,775 -5.3% in value 48% 52% Order Book 12,227 12,420 -1.6% Civil Deliveries (a/c) 471 497 -5.2% Reven
Slide 14: Airbus Defence & Space
14 AIRBUS DEFENCE & SPACE External Revenue Split in € m FY 2014 FY 2013 Change restated & pro forma Order Intake (net) 12,225 11,808 +3.5% Services 31% Order Book 43,075 43,208 -0.3% Revenues 13,025 13,121 -0.7% 69% Platforms R&D expenses 360 344 +4.7% in % of revenues 2.8% 2.6% EBIT* before one-off
Slide 15: FY Results 2014 agenda
15 FY RESULTS 2014 Group Highlights Divisional Highlights Guidance 2015 & Dividend
Slide 16: Guidance 2015 / Dividend
16 GUIDANCE 2015 / DIVIDEND As the basis for its 2015 guidance, Airbus Group expects the world economy and air traffic to grow in line with prevailing independent forecasts and assumes no major disruptions Airbus deliveries should be slightly higher than in 2014, and the commercial aircraft orde
Slide 17: Conclusion
17 CONCLUSION Strong commercial aircraft market fundamentals Strengthening US Dollar enhancing our profitability in 2017 and beyond Efficient and highly competitive product policy and portfolio Sound strategy: focus on core activities Dedicated to enhancing competitiveness, attacking cost
Slide 18: FY Results 2014 Appendix
FY RESULTS 2014 Appendix AIRBUS GROUP
Slide 19: Dividend
19 DIVIDEND Gross dividend per share in € Pay-out Ratio 1.40 1.20 * 1.20 1.00 0.75 0.80 0.60 Ex-dividend date: 1 June 2015* 0.60 Record date: 2 June 2015* 0.40 40% 40% Payment date: 3 June 2015* 31% 0.20 0.00 FY 2012 FY 2013 FY 2014 Gross Dividend per share increase to € 1.20* (+60% vs. 2013
Slide 20: Expected Airbus Group Average Hedge Rates € vs. $
20 EXPECTED AIRBUS GROUP AVERAGE HEDGE RATES € VS. $ Active exposure management 1.40 1.38 1.38 Average Hedge Rates 1.37 FY 2013 1.37 1.36 1.36 1.36 1.36 1.36 FY 2014 1.35 1.35 1.35 FY 2015E 1.35 1.35 1.34 1.34 1.34 1.33 1.32 Q1 Q2 Q3 Q4 FY 2013 FY 2014 2015 E
Slide 21: FY 2014 Forex EBIT Impact Bridge
21 FY 2014 FOREX EBIT* IMPACT BRIDGE in € bn Bridge Hedge rates ($/€ 1.37 to $/€ 1.35) 0.20 Other one-off forex effect including PDP reversal 0.24 Compared to FY 2013 0.44 * Pre-goodwill impairment and exceptionals
Slide 22: FY 2014 Detailed Income Statement and Adjustments
22 FY 2014 DETAILED INCOME STATEMENT AND ADJUSTMENTS thereof thereof Impact on EBIT* in € m Goodwill FY 2014* Financial FY 2014 Impair. FY 2014* OPERATIONAL HQ FX before Result & FV dep. one-off Airbus DS Dassault sale EBIT* 3,991 (49) 4,040 (511) 343 142 4,066 in % of revenues 6.6% 6.7% 6.7% Intere
Slide 23: FY 2013 Detailed Income Statement and Adjustments
23 FY 2013 DETAILED INCOME STATEMENT AND ADJUSTMENTS thereof thereof Impact on EBIT* FY 2013* in € m Goodwill FY 2013 Financial before Impair. FY 2013* OPERATIONAL FX Adjusted Result one-off & FV dep. Adjusted Airbus Restructuring EBIT* 2,570 (54) 2,624 (519) (292) (102) 3,537 in % of revenues 4.5%
Slide 24: Q4 Key Figures
24 Q4 KEY FIGURES in € m Q4 2014 Q4 2013 Revenues 20,216 18,620 EBIT* before one-off 1,476 1,217 EBIT* 1,457 493 FCF before M&A 3,199 3,938 Order Intake 87,734 79,451 in € m Q4 2014 Q4 2013 Q4 2014 Q4 2013 Q4 2014 Q4 2013 Revenues EBIT* before one-off EBIT* Airbus 13,460 12,166 749 502 898 70 Airbus
Slide 25: Detailed Free Cash Flow
25 DETAILED FREE CASH FLOW in € m FY 2014 FY 2013 restated & pro forma Net Cash position at the beginning of the period 8,454 11,724 Gross Cash Flow from Operations* 5,595 4,143 Change in working capital** (2,386) (2,091) of which Customer Financing 108 (319) Cash used for investing activities*** (1
Slide 26: Net Cash Position
26 NET CASH POSITION in € m Dec. 2013 Dec. 2014 Adjusted Gross Cash 16,443 14,084 Financing Debts Short-term Financing Debts (1,073) (1,826) Long-term Financing Debts (6,278) (3,804) Reported Net Cash 9,092 8,454 Airbus non-recourse debt 46 50 Net Cash excl. non-recourse 9,138 8,504 2013 figures res
Slide 27: Airbus Group Provision Consumption
27 AIRBUS GROUP PROVISION CONSUMPTION* (AS AT 31 DECEMBER 2014) in € bn 6 5 4 3 2 1 0 Total < 2017 2017 - 2018 > 2018 • Liquidated Damages • LMC * Mainly A350 and A400M
Slide 28: Customer Financing Exposure
28 CUSTOMER FINANCING EXPOSURE in € m 100% Airbus 100% Airbus Helicopters Dec. 2014 Dec. 2013 Dec 2014 Dec. 2013 Closing rate € 1 = $ 1.21 $ 1.38 Total Gross exposure 1,103 1,193 81 84 of which off-balance sheet 71 91 9 14 Estimated value of collateral (743) (851) (37) (41) Net exposure 360 342 44 4
Slide 29: Airbus Customer Financing
29 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 0.6 exposure (0.9) (0.7) (0.7) (0.7) (0.3) (0.7) -0.5 (0.2) (1.3) (0.2) (0.2) managemen
Slide 30: Balance Sheet Highlights: Assets
30 BALANCE SHEET HIGHLIGHTS: ASSETS in € m Dec. 2013 Dec. 2014 Adjusted Non-current Assets 48,420 45,526 of which Intangible & Goodwill 12,758 12,500 of which Property, plant & equipment 16,321 15,585 of which Investments & Financial assets 5,160 5,614 of which positive hedge mark-to-market 502 1,99
Slide 31: Balance Sheet Highlights: Liabilities
31 BALANCE SHEET HIGHLIGHTS: LIABILITIES in € m Dec. 2013 Dec. 2014 Adjusted Total Equity 7,079 10,906 of which OCI (Other Comprehensive Income) (1,205) 2,915 of which Non-controlling interests 18 42 Total Non-current liabilities 40,846 33,017 of which pensions 7,864 5,866 of which other provisions
Slide 32: Shareholding Structure as at 31 December 2014
32 SHAREHOLDING STRUCTURE AS AT 31 DECEMBER 2014 Free Float 0.1% 4.1% • Institutional Investors & Retail 74.0% 10.9% 10.9% Shareholder Agreement • SOGEPA • GZBV 26.0% 74.0% • SEPI Treasury shares • Treasury shares* (without economic or voting rights) <0.1% 784,780,585 shares issued as at 31 Decemb
Slide 33: Quarterly Order Intake Breakdown (Cumulative)
33 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 22,880 89,302 68,479 125,964 150,085 199,261 Airbus Helicopters 1,202 804 2,183 2,448 3
Slide 34: Quarterly Order Book Breakdown (Cumulative)
34 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 628,910 552,509 625,620 573,829 711,825 581,034 803,633 625,595 Airbus Helicopters 12,439 12,708 11,802
Slide 35: Quarterly Revenues Breakdown (Cumulative)
35 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 19,429 18,102 28,820 27,328 42,280 39,494 Airbus Helicopters 1,182 1,038 2,801 2,584 4,260 4,
Slide 36: Quarterly EBIT Breakdown (Cumulative)
36 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 1,357 1,095 1,773 1,523 2,671 1,593 Airbus Helicopters 58 20 150 128 241 217 413 397 Airbus Defence
Slide 37: Quarterly EBIT Before One-off Breakdown (Cumulative)
37 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 1,287 1,231 1,780 1,712 2,529 2,214 Airbus Helicopters 58 20 150 128 241 217 413 397
Slide 38: Airbus Group FY 2013 Restatements
38 AIRBUS GROUP FY 2013 RESTATEMENTS Order Intake FY 2013 Movements Airbus Group Divisions Airbus Group Divisions EADS Divisions Movements restructuring JV restated accounting restated & proforma Total old Airbus Airbus Total new segments divisions Defence & Airbus Elim Total in € m Military in € m
Slide 39: Airbus Group FY 2013 Restatements
39 AIRBUS GROUP FY 2013 RESTATEMENTS Revenues FY 2013 Movements Airbus Group Divisions Airbus Group Divisions EADS Divisions Movements restructuring JV restated accounting restated & proforma Total old Airbus Airbus Total new segments divisions Defence & Airbus Elim Total in € m Military in € m in €