Airbus Se · EURONEXT:AIR
Airbus — H1 2015 Earnings Presentation
35 slides from Airbus's earnings presentation, Jul 31, 2015
Slide 1: H1 Results 2015
1 H1 RESULTS 2015 31 JULY 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: H1 Results 2015 agenda
3 H1 RESULTS 2015 Group Highlights Divisional Highlights Guidance 2015
Slide 4: H1 2015 Highlights
4 H1 2015 HIGHLIGHTS Financial performance confirms 2015 guidance Healthy commercial momentum and commercial aircraft market Focus on programme execution Boost operational efficiency
Slide 5: H1 2015 Commercial Environment
5 H1 2015 COMMERCIAL ENVIRONMENT Airbus Group Airbus Group Order Intake* by Segment (by value) Order Book* by Region (by value) Airbus D&S Other countries 10% Latin America Airbus Helicopters 10% 4% 7% 29% Asia Pacific Middle-East € 54 bn 13% € 927 bn** t/o Defence: € 4 bn t/o Defence: € 39 bn Airbu
Slide 6: H1 2015 Financial Performance
6 H1 2015 FINANCIAL PERFORMANCE Revenues EBIT* before one-off 6.7% 6.2% 4.07 61 62 58 3.57 in € bn / RoS (%) in € bn 6.5% 6.5% 6.3% 29 1.77 1.88 26 27 1.61 H1'13 FY'13 H1'14 FY'14 H1'15 FY'15 H1'13 FY'13 H1'14 FY'14 H1'15 FY'15 Guidance Guidance EPS** before one-off FCF before M&A 1.1 Breakeven 3.50
Slide 7: H1 2015 Profitability
7 H1 2015 PROFITABILITY EBIT* performance 2.23 H1 2015 EBIT* reported +21% 1.77 1.88 1.84 H1 2015 one-offs resulting from: € - 290 m A400M provision € - 145 m $ PDP mismatch / BS Revaluation € + 748 m Sale of Dassault Aviation shares in € bn € + 33 m Defence & Space Portfolio EBIT* befor
Slide 8: Currency Hedge Policy
8 CURRENCY HEDGE POLICY in US$ bn 25.5* • Forward Sales as of June 2015 • Forward Sales as of Dec. 2014 12.8 23.2 22.6 19.7 14.9 12.7 Average hedge rates 2015 2016 2017 2018 2019 and beyond 1.35 1.32 1.31 1.27 1.28 € vs $ ( 1.33 in Dec. 14 ) ( 1.35 in Dec. 14 ) ( 1.33 in Dec. 14 ) ( 1.32 in Dec. 14
Slide 9: H1 2015 Cash Evolution
9 H1 2015 CASH EVOLUTION in € bn Free Cash Flow* before M&A -1.0 * Thereof Capex of € - 1.0 bn; ** M&A transactions include acquisitions and disposals of subsidiaries and businesses; *** thereof Dividend of € - 0.9 bn
Slide 10: H1 Results 2015 agenda
10 H1 RESULTS 2015 Group Highlights Divisional Highlights Guidance 2015
Slide 11: Airbus
11 AIRBUS in € m H1 2015 H1 2014 Change Deliveries by Programme (units) Order Intake (net) 348 290 +20.0% A380 A350 in units 4% Order Book 6,430 5,546 +15.9% Long Range 16% Order Intake (net) 46,334 22,880 +102.5% in value Order Book 875,018 625,620 +39.9% Single Aisle 78% Deliveries (a/c) 304 303 +
Slide 12: Airbus Helicopters
12 AIRBUS HELICOPTERS in € m H1 2015 H1 2014 Change External Revenue Split Order Intake (net) 135 148 -8.8% in units Order Book 876 943 -7.1% Defence Order Intake (net) 2,726 2,183 +24.9% in value 52% 48% Order Book 12,004 11,802 +1.7% Civil Deliveries (a/c) 152 200 -24.0% Revenues 2,950 2,801 +5.3%
Slide 13: Airbus Defence & Space
13 AIRBUS DEFENCE & SPACE External Revenue Split in € m H1 2015 H1 2014 Change Order Intake (net) 5,371 3,831 +40.2% Services 29% Order Book 41,683 41,566 +0.3% Revenues 5,531 5,516 +0.3% 71% Platforms R&D expenses 159 163 -2.5% in % of revenues 2.9% 3.0% EBIT* before one-off 267 223 +19.7% in % of
Slide 14: H1 Results 2015 agenda
14 H1 RESULTS 2015 Group Highlights Divisional Highlights Guidance 2015
Slide 15: Guidance 2015
15 GUIDANCE 2015 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 order book is e
Slide 16: Conclusion
16 CONCLUSION Financial performance on track to deliver 2015 guidance Healthy commercial aircraft market confirmed Operational progress delivering results Long-term EPS/DPS growth story supported by near-term disposals and divestments
Slide 17: Appendix
H1 RESULTS 2015 Appendix AIRBUS GROUP
Slide 18: Expected Airbus Group Average Hedge Rates € vs. $
18 EXPECTED AIRBUS GROUP AVERAGE HEDGE RATES € VS. $ Active exposure management 1.38 1.37 Average Hedge Rates 1.36 1.36 FY 2014 1.35 1.35 1.35 FY 2015E 1.35 1.35* 1.34 1.34 1.33 1.33 1.32 Q1 Q2 Q3 Q4 FY 2014 2015 E * Q2 2015 Actual
Slide 19: H1 2015 Forex EBIT Impact Bridge
19 H1 2015 FOREX EBIT* IMPACT BRIDGE in € bn Bridge Hedge rates ($/€ 1.36 to $/€ 1.35) 0.05 Other one-off forex effect including PDP reversal (0.22) Compared to H1 2014 (0.17) * Pre-goodwill impairment and exceptionals
Slide 20: H1 2015 Detailed Income Statement and Adjustments
20 H1 2015 DETAILED INCOME STATEMENT AND ADJUSTMENTS thereof thereof Impact on EBIT* in € m Goodwill Financial H1 2015* H1 2015 Impair. H1 2015* OPERATIONAL HQ FX *** Result before & FV dep. one-off one-off Defence & Space ** Dassault sale EBIT 2,210 (19) 2.229 (257) 748 (145) 1,883 in % of revenues
Slide 21: H1 2014 Detailed Income Statement and Adjustments
21 H1 2014 DETAILED INCOME STATEMENT AND ADJUSTMENTS thereof thereof Impact on EBIT* in € m Goodwill Financial H1 2014* H1 2014 Impair. H1 2014* FX one-off Result before one-off & FV dep. one-off EBIT 1,819 (20) 1,839 70 1,769 in % of revenues 6.7% 6.8% 6.5% Interest income 79 79 79 Interest expense
Slide 22: Q2 Key Figures
22 Q2 KEY FIGURES in € m Q2 2015 Q2 2014 Revenues 16,815 14,552 EBIT* before one-off 1,232 1,069 EBIT* 988 1,120 FCF before M&A 111 (210) Order Intake 32,925 6,607 in € m Q2 2015 Q2 2014 Q2 2015 Q2 2014 Q2 2015 Q2 2014 Revenues EBIT* before one-off EBIT* Airbus 12,516 10,492 964 760 1,005 811 Airbus
Slide 23: Detailed Free Cash Flow
23 DETAILED FREE CASH FLOW in € m H1 2015 H1 2014 Net Cash position at the beginning of the period 9,092 8,454 Gross Cash Flow from Operations* 2,049 2,595 Change in working capital** (2,101) (4,024) of which Customer Financing (63) (132) Cash used for investing activities*** 601 (815) of which Indu
Slide 24: Net Cash Position
24 NET CASH POSITION in € m Jun. 2015 Dec. 2014 Gross Cash 16,842 16,443 Financing Debts Short-term Financing Debts (1,717) (1,073) Long-term Financing Debts (6,689) (6,278) Reported Net Cash 8,436 9,092 Airbus non-recourse debt 73 46 Net Cash excl. non-recourse 8,509 9,138
Slide 25: Airbus Group: Strong Liquidity Position as at 30 June 2015
25 AIRBUS GROUP: STRONG LIQUIDITY POSITION AS AT 30 JUNE 2015 € 3.0 bn Credit Facility: Maturity 2019, undrawn Credit Facility (RSCF) Fully committed by 40 banks No financial covenants, no MAC clause Financing Liabilities: Short-term: € 1.7 bn Includes Commercial Paper: € 0.5bn eq. USCP** €
Slide 26: Customer Financing Exposure
26 CUSTOMER FINANCING EXPOSURE in € m Airbus Airbus Helicopters Jun. 2015 Dec. 2014 Jun. 2015 Dec. 2014 Closing rate € 1 = $ 1.12 $ 1.21 Total Gross exposure 1,188 1,103 72 81 of which off-balance sheet 63 71 9 9 Estimated value of collateral (892) (743) (30) (37) Net exposure 296 360 42 44 Provisio
Slide 27: Customer Financing
27 CUSTOMER FINANCING Net Exposure fully provisioned Net Exposure fully provisioned Net Exposure Gross Net Exposure Gross € 0.3 bn Exposure € 0.4 bn Exposure Estimated € 1.2 bn € 1.1 bn Estimated Collateral Collateral ($ 1.3 bn) € 0.7 bn ($ 1.3 bn) € 0.9 bn 31 December 2014 30 June 2015 Additions Se
Slide 28: Balance Sheet Highlights: Assets
28 BALANCE SHEET HIGHLIGHTS: ASSETS in € m Jun. 2015 Dec. 2014 Non-current Assets 52,618 48,420 of which Intangible & Goodwill 12,660 12,758 of which Property, plant & equipment 16,700 16,321 of which Investments & Financial assets 3,383 5,160 of which positive hedge mark-to-market 921 502 of which
Slide 29: Balance Sheet Highlights: Liabilities
29 BALANCE SHEET HIGHLIGHTS: LIABILITIES in € m Jun. 2015 Dec. 2014 Total Equity 5,715 7,079 of which OCI (Other Comprehensive Income) (3,615) (1,205) of which Non-controlling interests 3 18 Total Non-current liabilities 46,541 40,846 of which pensions 7,670 7,864 of which other provisions 2,584 2,5
Slide 30: Shareholding Structure as at 30 June 2015
30 SHAREHOLDING STRUCTURE AS AT 30 JUNE 2015 Free Float 0.1% 4.1% • Institutional Investors & Retail 74.0% 10.9% 10.9% Shareholder Agreement • SOGEPA • GZBV 25.9% 74.0% • SEPI Treasury shares • Treasury shares (without economic or voting rights) 0.1% 787,579,306 shares issued as at 30 June 2015
Slide 31: Quarterly Order Intake Breakdown (Cumulative)
31 QUARTERLY ORDER INTAKE BREAKDOWN (CUMULATIVE) in € m Q1 H1 9m FY 2015 2014 2015 2014 2015 2014 2015 2014 Airbus 17,217 17,938 46,334 22,880 68,479 150,085 Airbus Helicopters 1,428 1,202 2,726 2,183 3,281 5,469 Airbus Defence & Space 2,390 2,068 5,371 3,831 8,227 12,225 HQ/Elim (41) (107) (512) (1
Slide 32: Quarterly Order Book Breakdown (Cumulative)
32 QUARTERLY ORDER BOOK BREAKDOWN (CUMULATIVE) in € m Q1 H1 9m FY 2015 2014 2015 2014 2015 2014 2015 2014 Airbus 901,565 628,910 875,018 625,620 711,825 803,633 Airbus Helicopters 12,371 12,439 12,004 11,802 11,440 12,227 Airbus Defence & Space 41,854 42,588 41,683 41,566 43,647 43,075 HQ/Elim (1,22
Slide 33: Quarterly Revenues Breakdown (Cumulative)
33 QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) in € m Q1 H1 9m FY 2015 2014 2015 2014 2015 2014 2015 2014 Airbus 8,565 8,937 21,081 19,429 28,820 42,280 Airbus Helicopters 1,285 1,182 2,950 2,801 4,260 6,524 Airbus Defence & Space 2,603 2,743 5,531 5,516 8,197 13,025 HQ/Elim (375) (214) (669) (546) (7
Slide 34: Quarterly EBIT Breakdown (Cumulative)
34 QUARTERLY EBIT* BREAKDOWN (CUMULATIVE) in € m Q1 H1 9m FY 2015 2014 2015 2014 2015 2014 2015 2014 Airbus 419 546 1,424 1,357 1,773 2,671 Airbus Helicopters 52 58 162 150 241 413 Airbus Defence & Space 133 85 (26) 223 370 409 HQ/Elim 637 30 669 109 199 547 Airbus Group 1,241 719 2,229 1,839 2,583
Slide 35: Quarterly EBIT Before One-off Breakdown (Cumulative)
35 QUARTERLY EBIT* BEFORE ONE-OFF BREAKDOWN (CUMULATIVE) in € m Q1 H1 9m FY 2015 2014 2015 2014 2015 2014 2015 2014 Airbus 569 527 1,533 1,287 1,780 2,529 Airbus Helicopters 52 58 162 150 241 413 Airbus Defence & Space 90 85 267 223 370 920 HQ/Elim (60) 30 (79) 109 199 204 Airbus Group 651 700 1,883