Airbus Se · EURONEXT:AIR
Airbus — H1 2014 Earnings Presentation
40 slides from Airbus's earnings presentation, Jul 30, 2014
Slide 1: H1 Results 2014
H1 RESULTS 2014 30 JULY 2014 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: Group Highlights
3 H1 RESULTS 2014 Group Highlights
Slide 4: H1 2014 Highlights
4 H1 2014 Highlights Commercial aircraft market remains a long-term growth driver Sustained Demand Strong Farnborough Airshow (496 orders & commitments) Market endorsed A330neo (121 commitments) A330neo launch Preparing the future Launchers JV with Safran Development programmes progressing (A350, A3
Slide 5: H1 2014 Commercial Environment
5 H1 2014 Commercial Environment Airbus Group Order Intake* by Segment Airbus Group Order Book* by Region (by value) (by value) 6% 14% 6% 32% 7% € 28 bn 16% € 677 bn • Asia Pacific • Airbus • Europe • Airbus Helicopters • North America t/o Defence € 2.8 bn • Airbus D&S t/o Defence € 41.2 bn • Middle
Slide 6: H1 2014 Financial Performance
6 H1 2014 Financial Performance Revenues EBIT* before one-off Moderate 56 58 Stable 6.2% Growth ** 44 47 58 3.57 5.2% 2.96 in € bn 27 6.5% in € bn 25 26 6.3% 5.4% 1.77 20 21 22 1.61 1.34 12 11 5 5 5 H1'12 FY'12 H1'13 FY'13 H1'14 Guidance H1'12 FY'12 H1'13 FY'13 H1'14 Guidance • t/o Defence RoS EPS*
Slide 7: H1 2014 Profitability
7 H1 2014 Profitability EBIT* performance H1 2014 EBIT* reported +24% 1.77 1.84 1.61 H1 2014 one-offs limited to € + 70 m from $ PDP 1.48 Mismatch / BS Revaluation in € bn EBIT* before one-off EBIT* Reported H1 2013 H1 2014 EPS performance H1 2014 Net Income of € 1.1bn, +50 % 1.45 H1 2014 EPS of € 1
Slide 8: H1 2014 Cash Evolution
8 H1 2014 Cash Evolution in € bn +2.6 8.5 -4.0 -0.8 -0.0 5.4 Free Cash Flow before Acquisitions -0.9 -2.3 Net Cash position Gross Cash Flow Change in Working Cash used for Acquisitions Capital, Dividends, Net Cash position Dec. 2013 from Operations * Capital ** investing activities Pensions & Others
Slide 9: Divisional Highlights
9 H1 RESULTS 2014 Divisional Highlights
Slide 10: Airbus
10 Airbus in € m H1 2014 H1 2013 Change Deliveries by Programme (units) restated & pro forma Order Intake (net) 290 722 -59.8% 4% in units 18% Order Book 5,546 5,109 +8.6% • Single Aisle • Long Range Order Intake (net) 22,880 89,302 -74.4% • A380 in value Order Book 625,620 573,829 +9.0% 78% Deliver
Slide 11: Airbus Helicopters
11 Airbus Helicopters in € m H1 2014 H1 2013 Change External Revenue Split Order Intake (net) 148 167 -11.4% in units Order Book 943 1,047 -9.9% • Civil Order Intake (net) 2,183 2,448 -10.8% 48% 52% • Defence in value Order Book 11,802 12,806 -7.8% Deliveries (units) 200 190 +5.3% Revenues 2,801 2,5
Slide 12: Airbus Defence & Space
12 Airbus Defence & Space in € m H1 2014 H1 2013 Change External Revenue Split Restated & pro forma Order Intake (net) 3,831 3,948 -3.0% 28% Order Book 41,566 42,738 -2.7% • Platforms • Services Revenues 5,516 5,564 -0.9% 72% R&D expenses 163 158 +3.2% in % of revenues 3.0% 2.8% EBIT* before one-off
Slide 13: Guidance 2014
13 H1 RESULTS 2014 Guidance 2014
Slide 14: Guidance 2014
14 Guidance 2014 2014 Guidance is based on $/€ 1.35 as average rate Airbus Airbus deliveries about the same level as 2013 including 1st A350 (2013: 626 a/c) Orders & Deliveries Net book to bill > 1 Revenues Airbus Group targets revenues to be stable with 2013** Using EBIT before one off, Airbus Grou
Slide 15: Conclusion
15 Conclusion Securing Long Term Profitable Growth Focusing on Successful Operational Execution Delivering on our Strategy Enhancing Shareholder Value
Slide 16: Appendix
16 H1 RESULTS 2014 Appendix AIRBUS GROUP
Slide 17: Currency Hedge Policy
17 Currency Hedge Policy Expected exposure in US$ bn 24.4* Trend (indicative) 12.7 • Total Forward Sales • Dec. 2013 24.0 19.1 11.7 11.1 5.4 Average hedge rates 2014 2015 2016 2017 2018+ 1.34 1.35 1.33 1.33 1.36 € vs $ For remaining 6 months ( FY 2014e 1.35 ) ( 1.35 in Dec. 13 ) ( 1.32 in Dec. 13 )
Slide 18: Expected Airbus Group Average Hedge Rates € vs. $
18 Expected Airbus Group Average Hedge Rates € vs. $ Active exposure management $/€ 1.40 1.38 1.38 Average Rates 1.37 1.36 1.36 1.36 1.36 FY 2013 1.37 1.35 1.35* FY 2014E 1.35 1.34 1.33 1.32 Q1 Q2 Q3 Q4 FY 2013 2014 E * Q2 2014 actual
Slide 19: H1 2014 Forex EBIT Impact Bridge
19 H1 2014 Forex EBIT* Impact Bridge in € bn Bridge Hedge rates ($/€ 1.37 to $/€ 1.36) 0.05 Other one-off forex effect including PDP reversal 0.18 Compared to H1 2013 0.23 * Pre-goodwill impairment and exceptionals
Slide 20: H1 2014 Detailed Income Statement and Adjustments
20 H1 2014 Detailed Income Statement and Adjustments thereof thereof Impact on EBIT* Goodwill in € m Financial H1 2014* Impair. FX H1 2014 H1 2014* result before & Fair one-off one-off one-off value dep. EBIT* 1,819 (20) 1,839 70 1,769 in % of revenues 6.7% 6.8% 6.5% Interest income 79 79 79 Interes
Slide 21: H1 2013 Detailed Income Statement and Adjustments
21 H1 2013 Detailed Income Statement and Adjustments thereof thereof Impact on EBIT* Goodwill H1 2013* in € m OPERATI Financial H1 2013 Impair. FX before H1 2013* ONAL result Adjusted & Fair one-off one-off one-offs one-off value dep. Adjusted Airbus EBIT* 1,459 (19) 1,478 (28) (108) 1,614 in % of r
Slide 22: Q2 Key Figures
22 Q2 Key Figures in € m Q2 2014 Q2 2013 Revenues 14,552 13,576 EBIT* 1,120 889 FCF before Acquisitions (236) (898) Order Intake 6,607 46,016 in € m Q2 2014 Q2 2013 Q2 2014 Q2 2013 Revenues EBIT* Airbus 10,492 9,343 811 632 Airbus Helicopters 1,619 1,546 92 108 Airbus Defence & Space 2,773 2,900 138
Slide 23: Detailed Free Cash Flow
23 Detailed Free Cash Flow in € m H1 2014 H1 2013 restated & pro forma Net Cash position at the beginning of the period 8,454 11,724 Gross Cash Flow from Operations* 2,595 1,735 Change in working capital** (4,024) (4,363) of which Customer Financing (132) (53) Cash used for investing activities*** (
Slide 24: Net Cash Position
24 Net Cash Position in € m Dec. 2013 June 2014 Adjusted Gross Cash 13,485 14,084 Financing Debts Short-term Financing Debts (3,297) (1,826) Long-term Financing Debts (4,827) (3,804) Reported Net Cash 5,361 8,454 Airbus non-recourse debt 56 50 Net Cash excl. non-recourse 5,417 8,504 2013 figures res
Slide 25: Airbus Group: Strong Liquidity Position as at 30 June 2014
25 Airbus Group: Strong Liquidity Position as at 30 June 2014 € 3.0 bn Maturity 2018 Undrawn Credit Facility (RSCF) Fully committed by 39 banks* No financial covenants No MAC clause € 8.1 bn EMTN programme & USD Bond (144A/RegS) Financing Liabilities Long term rating : (incl. € 2.5 bn liabilities of
Slide 26: Airbus Programme Provision Consumption
26 Airbus Programme Provision Consumption (as at 31 December 2013) in € bn 5 4 3 2 1 0 Total < 2016 * 2016 - 2017 > 2017 • Liquidated Damages • LMC * Includes € 434 m A350 charge booked in Q4 2013
Slide 27: Customer Financing Exposure
27 Customer Financing Exposure in € m 100% Airbus 100% Airbus Helicopters June 2014 Dec. 2013 June 2014 Dec. 2013 Closing rate € 1 = $ 1.37 $ 1.38 Total Gross exposure 1,304 1,193 85 84 of which off-balance sheet 73 91 13 14 Estimated value of collateral (969) (851) (43) (41) Net exposure 335 342 42
Slide 28: Airbus Customer Financing
28 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 0.3 (0.2) (1.0) (1.1) exposure (0.9) (0.7) (0.7) (1.3) (2.2) (0.3) (0.7) (0.1) -0.5 (0.
Slide 29: Balance Sheet Highlights: Assets
29 Balance Sheet Highlights: Assets in € m Dec. 2013 June 2014 Adjusted Non-current Assets 46,406 45,526 of which Intangible & Goodwill 12,550 12,500 of which Property, plant & equipment 15,771 15,585 of which Investments & Financial assets 5,525 5,614 of which positive hedge mark-to-market 1,652 1,
Slide 30: Balance Sheet Highlights: Liabilities
30 Balance Sheet Highlights: Liabilities in € m Dec. 2013 June 2014 Adjusted Total Equity 10,978 10,906 of which OCI (Other Comprehensive Income) 2,623 2,929 of which Non-controlling interests 49 42 Total Non-current liabilities 34,278 33,017 of which pensions 6,199 5,866 of which other provisions 3
Slide 31: Shareholding Structure as at 30 June 2014
31 Shareholding Structure as at 30 June 2014 0.1% 11.0% 2% Shareholder Agreement 5% 15% 10.9% • SOGEPA 33% • GZBV 26.0% 4.1% • SEPI 19% 26% Free Float 73.9% • Institutional Investors & Retail • Treasury shares* (without economic or voting rights) 784,095,890 shares outstanding as at 30 June 2014 * S
Slide 32: Quarterly Order Intake Breakdown (cumulative)
32 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 89,302 125,964 199,261 Airbus Helicopters 1,202 804 2,183 2,448 4,177 5,775 Airb
Slide 33: Quarterly Order Book Breakdown (cumulative)
33 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 628,910 552,509 625,620 573,829 581,034 625,595 Airbus Helicopters 12,439 12,708 11,802 12,806 12,986 1
Slide 34: Quarterly Revenues Breakdown (cumulative)
34 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 27,328 39,494 Airbus Helicopters 1,182 1,038 2,801 2,584 4,132 6,297 Airbus Def
Slide 35: Quarterly EBIT Breakdown (cumulative)
35 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 1,523 1,592 Airbus Helicopters 58 20 150 128 217 397 Airbus Defence & Space 85 84 223 21
Slide 36: Quarterly EBIT before one-off Breakdown (cumulative)
36 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 1,712 2,213 Airbus Helicopters 58 20 150 128 217 397 Airbus Defence & Spa
Slide 37: Airbus Group H1 2013 restatements
37 Airbus Group H1 2013 restatements Order Intake H1 2013 Movements Airbus Group Divisions restated & EADS Divisions Movements restructuring Airbus Group Divisions restated JV accounting proforma Total old Airbus Airbus Total new segments segments Defence & Airbus Elim Total in € m Military in € m i
Slide 38: Airbus Group H1 2013 restatements
38 Airbus Group H1 2013 restatements Revenues H1 2013 Movements Airbus Group Divisions restated & EADS Divisions Movements restructuring Airbus Group Divisions JV accounting proforma Total old Airbus Airbus Total new segments segments Defence & Airbus Elim Total in € m Military in € m in € m Space E
Slide 39: Airbus Group FY 2013 restatements
39 Airbus Group FY 2013 restatements Order Intake FY 2013 Movements Airbus Group Divisions restated & EADS Divisions Movements restructuring Airbus Group Divisions restated JV accounting proforma Total old Airbus Airbus Airbus Total new segments divisions Defence & Total in € m Military Elim in € m
Slide 40: Airbus Group FY 2013 restatements
40 Airbus Group FY 2013 restatements Revenues FY 2013 Movements Airbus Group Divisions restated & EADS Divisions Movements restructuring Airbus Group Divisions restated JV accounting proforma Total old Airbus Airbus Airbus Total new segments divisions Defence & Total in € m Military Elim in € m in €