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Airbus — EADS — 9M 2012 Earnings Presentation

37 slides from Airbus's earnings presentation, Nov 8, 2012

  1. Slide 1: 9m Results 2012

    9m Results 2012 8 November 2012 Harald Wilhelm Chief Financial Officer

  2. 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

  3. Slide 3: 9m Results 2012

    9m Results 2012 Highlights & Key Financials Divisional Performance Guidance 2012 & Outlook

  4. Slide 4: 9m 2012 Financial Highlights

    4 9m 2012 Financial Highlights Commercial Performance on track in € bn 9m 2012 9m 2011 Change Solid order activity for Airbus Military, Astrium, Cassidian and Eurocopter; Order intake** 50.4 93.9 - 46% On-going commercial momentum at Airbus Commercial, on track for book to bill > 1 in 2012; Sept. 20

  5. Slide 5: 9m 2012 EBIT* Before One-off

    5 9m 2012 EBIT* Before One-off in € bn EADS Airbus Airbus Group Division Commercial EBIT* before one-off 2012 1.95 1.17 1.15 % Revenues 5.2% 4.6% 4.7% One-off impacts: A350 XWB programme update (0.12) (0.12) (0.12) A380 wing rib feet update** (0.20) (0.20) (0.20) $ PDP mismatch and balance sheet rev

  6. Slide 6: 9m 2012 Profit & Loss Highlights

    6 9m 2012 Profit & Loss Highlights 9m 2012 9m 2011 in % of in % of €m Revenues € m Revenues Revenues 37,258 32,687 EBIT* 1,615 4.3% 885 2.7% Self-financed R&D** 2,145 5.8% 2,151 6.6% EBIT* before R&D 3,760 10.1% 3,036 9.3% Interest result (237) (0.6%) (9) (0.0%) Other financial result (100) (0.3%) (

  7. Slide 7: Currency Hedge Policy

    7 Currency Hedge Policy Approximately 50% of EADS’ US$ revenues are naturally hedged by US$ procurement; In 9m 2012, hedges of $ 15.7 bn* matured at an average hedge rate of € 1 = $ 1.37; In 9m 2012, new hedge contracts of $ 27.0 bn* were added at an average rate of € 1= $ 1.29**. EADS hedge portfol

  8. Slide 8: Free Cash Flow

    8 Free Cash Flow in € m 9m 2012 9m 2011 Net cash position at the beginning of the period 11,681 11,918 Gross Cash Flow from Operations* 3,113 1,843 Change in working capital (4,578) 84 of which Customer Financing (97) 182 Cash used for investing activities** (1,911) (1,772) of which Industrial Capex

  9. Slide 9: 9m Results 2012

    9 9m Results 2012 Highlights & Key Financials Divisional Performance Guidance 2012 & Outlook EADS 9m Earnings 2012

  10. Slide 10: Airbus Division

    10 Airbus Division Airbus Division Airbus Commercial Airbus Military (after elimination) in € m 9m 2012 9m 2011 9m 2012 9m 2011 9m 2012 9m 2011 c) Deliveries (units) 414 a/c a) 382 a/c 405 a/c b) 374 a/c c) 11 a/c 12 a/c Revenues 25,621 22,411 24,725 21,120 1,194 1,747 R&D self-financed** 1,672 1,70

  11. Slide 11: Airbus Division

    11 Airbus Division Airbus Commercial Revenues +17% EBIT* before one-off ~ € 1.15 bn (+203% vs. 9m 2011; RoS 4.7%) 403 deliveries with revenue recognition: Operational improvement driven mainly by volume and better pricing, thereof 17 A380, 317 SA, 69 LR. net of escalation; Favourable volume and mix;

  12. Slide 12: Eurocopter

    12 Eurocopter Robust order intake of € 3.6 bn in € m 9m 2012 9m 2011 286 net orders booked compared to 259 in 9m 2011 including: Revenues 4,116 3,458 10 EC135 for MedTrans Corporation; R&D self-financed** 204 154 8 EC145 for Kazakhstan. in % of revenues 5.0% 4.5% EBIT* 277 157 Revenues +19% in % of

  13. Slide 13: Astrium

    13 Astrium Revenues +14% in € m 9m 2012 9m 2011 Increase mainly related to Vizada consolidation. Revenues 3,934 3,440 R&D self-financed 85 60 EBIT* +16% in % of revenues 2.2% 1.7% Positive Vizada contribution; EBIT* 191 165 Increased efficiency and productivity driven by AGILE in % of revenues 4.9%

  14. Slide 14: Cassidian

    14 Cassidian Highlights in € m 9m 2012 9m 2011 New management team appointed to reduce complexity, to Revenues 3,484 3,419 enhance margin performance and to strengthen R&D self-financed 165 174 internationalisation; in % of revenues 4.7% 5.1% Comprehensive review of cost structure and contract EBIT*

  15. Slide 15: Other Businesses

    15 Other Businesses Revenues increase +28% in € m 9m 2012 9m 2011 Delivery ramp up of military transport aircraft at EADS North Revenues 1,067 833 America and higher ATR deliveries. R&D self-financed 10 7 in % of revenues 0.9% 0.8% EBIT* decreased -25% EBIT* 15 20 In 9m 2011, a disposal gain of € +

  16. Slide 16: 9m Results 2012

    16 9m Results 2012 Highlights & Key Financials Divisional Performance Guidance 2012 & Outlook EADS 9m Earnings 2012

  17. Slide 17: Guidance 2012

    17 Guidance 2012 2012 guidance is based on €/$ 1.30 as average rate Airbus Orders & Deliveries: Airbus deliveries around 580 a/c; book to bill > 1; in the range of 600 to 650 aircraft. Revenues: EADS revenues to grow in excess of 10% in 2012 to reflect currency development. EBIT* before one off: Bas

  18. Slide 18: Appendix

    Appendix Q@AIRBUS QASTRIUM @CASSIDIAN € EUROCOPTER EADS

  19. Slide 19: 9m 2012 Forex EBIT* Impact Bridge

    19 9m 2012 Forex EBIT* Impact Bridge Forex impact on EBIT* (in € bn) BRIDGE Improvement of hedge rates (€: $ 1.38 to 1.37) 0.1 Other one-off forex effect including PDP reversal 0.1 Compared to 9m 2011 0.2 * Pre-goodwill impairment and exceptionals EADS 9m Earnings 2012

  20. Slide 20: 9m 2012 EBIT* Before One-off by Division

    20 9m 2012 EBIT* Before One-off by Division EBIT* before One-offs Reported in € bn one-off EBIT* Airbus 1.17 (0.33) 0.84 Eurocopter 0.28 0 0.28 Astrium 0.19 0 0.19 Cassidian 0.16 0 0.16 Other Businesses 0.01 0 0.01 HQ & eliminations 0.14 0 0.14 EADS 1.95 (0.33) 1.62 * Pre-goodwill impairment and exc

  21. Slide 21: 9m 2011 EBIT* Before One-off

    21 9m 2011 EBIT* Before One-off EADS AIRBUS AIRBUS in € bn Group Division Comm. EBIT* before one-off 9m 2011 1.07 0.37 0.38 % Revenues 3.3% 1.7% 1.8% One-off impacts: Airbus Commercial $ PDP mismatch and balance sheet revaluation (0.05) A350 XWB Charge (0.20) Positive one-off due to A340 Programme t

  22. Slide 22: Net Income Before One-off

    22 Net Income Before One-off in € m 9m 2011 9m 2012 Net Income reported 903 421 Net Income* 923 463 One-offs in EBIT* (334) (180) One-offs Financial Result 18 25 Tax effect on one-offs (incl. tax one-offs) 95 11 Net Income* before one-off 1,144 607 EPS* before one-off a) € 1.40 € 0.75 Net Income* be

  23. Slide 23: 9m 2012 Financial Highlights

    23 9m 2012 Financial Highlights 9m 2012 9m 2011 €m in % of €m in % of Revenues Revenues Revenues 37,258 32,687 self-financed R&D** 2,145 5.8% 2,151 6.6% EBITDA* 2,938 7.9% 2,025 6.2% EBIT* 1,615 4.3% 885 2.7% EBIT* before R&D 3,760 10.1% 3,036 9.3% Net income 903 2.4% 421 1.3% EPS*** € 1.10 € 0.52 N

  24. Slide 24: Shareholding structure

    24 Shareholding structure Contractual Partnership Free float SOGEADE SEPI Daimler Lagardère incl. & Minor direct holdings: French French State: 0.06% State Treasury shares 0.63% 22.17% 5.40% 22.17%* 49.74% 50.26% as at 30 September 2012 * On 9 February 2007, Daimler reached an agreement with a conso

  25. Slide 25: Expected EADS Average Hedge Rates € vs. $

    25 Expected EADS Average Hedge Rates € vs. $ Average hedge rates 1.42 1.39 1.38 1.37 1.37 1.37 1.37 1.37 1.36 1.36 1.35 1.34 1.32 Q1 Q2 Q3 Q4 FY 2011 Average FY 2011 2012e Average FY 2012e* * Q3 2012 actual EADS 9m Earnings 2012

  26. Slide 26: Airbus Customer Financing

    26 Airbus Customer Financing Active exposure management Additions and Disposals Net Exposure fully 2.5 to Airbus customer financing gross exposure in $ bn provisioned Additions Sell Down Amortisation 1.5 1.5 1.4 1.0 0.3 0.6 0.8 Gross Net 0.5 1.5 0.9 0.8 0.4 0.6 0.5 0.4 0.5 Exposure (0.9) (0.7) (0.7)

  27. Slide 27: Customer Financing Exposure

    27 Customer Financing Exposure 100% AIRBUS 50% ATR 100% EC in € m Sept. 2012 Dec. 2011 Sept. 2012 Dec. 2011 Sept. 2012 Dec. 2011 Closing rate € 1 = $ 1.29 $ 1.29 Total Gross exposure 1,120 1,105 83 98 81 86 of which off-balance sheet 134 267 50 56 13 40 Estimated value of collateral (747) (627) (71)

  28. Slide 28: Q3 2012 Key figures

    28 Q3 2012Key Q2 2011 Keyfigures figures in € bn Q3 2012 Q3 2011 Revenues 12.3 10.8 EBIT* 0.5 0.3 FCF before customer financing** (1.6) 0.3 New orders 22.2 35.8 Revenues EBIT* in € m Q3 2012 Q3 2011 Q3 2012 Q3 2011 Airbus 8,375 7,099 284 93 Eurocopter 1,345 1,287 78 63 Astrium 1,273 1,093 61 62 Cass

  29. Slide 29: EBIT* Calculation

    29 EBIT* Calculation in € m 9m 2012 9m 2011 EBIT* 1,615 885 Exceptionals: Disposal of Goodwill 0 (22) Fair value depreciation (29) (30) Profit before finance cost 1,586 833 and income taxes * Pre-goodwill impairment and exceptionals EADS 9m Earnings 2012

  30. Slide 30: Net Cash Position

    30 Net Cash Position Sept. 2012 Dec. 2011 in € m Gross cash 13,693 16,785 Financing Debts Short-term Financing Debts (2,099) (1,476) Long-term Financing Debts (3,519) (3,628) Reported Net cash 8,075 11,681 Airbus non-recourse debt 380 455 Net cash excl. non-recourse 8,455 12,136 EADS 9m Earnings 201

  31. Slide 31: EADS: Strong Liquidity Position as at 30 September 2012

    31 EADS: Strong Liquidity Position as at 30 September 2012 Refinanced in April 2011 € 3 bn Maturity 2017* , undrawn Fully committed by 39 banks Credit Facility (RSCF) No financial covenants No MAC clause EMTN programme € 5.6 bn Long term rating : Moody’s: A1 stable Financing Liabilities S & P: A – p

  32. Slide 32: Balance Sheet Highlights: Assets

    32 Balance Sheet Highlights: Assets in € m Sept. 2012 Dec. 2011 Non-current Assets 46,054 45,455 of which Intangible & Goodwill 13,099 12,745 of which Property, plant & equipment 14,625 14,159 of which Investments & Financial assets 5,046 5,055 of which positive hedge mark-to-market 795 486 of which

  33. Slide 33: Balance Sheet Highlights: Liabilities

    33 Balance Sheet Highlights: Liabilities in € m Sept. 2012 Dec. 2011 Total Equity 9,219 8,870 of which OCI (Other Comprehensive Income) 491 153 of which Non-controlling interests 30 20 Total Non-current liabilities 33,076 32,100 of which pensions 6,259 5,628 of which other provisions 3,654 3,497 of

  34. Slide 34: Quarterly Revenues Breakdown (cumulative)

    34 Quarterly Revenues Breakdown (cumulative) in € m Q1 H1 9m FY 2012 2011 2012 2011 2012 2011 2012 2011 Airbus Division 7,909 7,013 17,246 15,312 25,621 22,411 … 33,103 Thereof Airbus Comm.* 7,499 6,707 16,585 14,464 24,725 21,120 … 31,159 Thereof Airbus Military 425 434 843 1,112 1,194 1,747 … 2,50

  35. Slide 35: Quarterly EBIT* Breakdown (cumulative)

    35 Quarterly EBIT* Breakdown (cumulative) in € m Q1 H1 9m FY 2012 2011 2012 2011 2012 2011 2012 2011 Airbus Division 183 115 553 202 837 295 … 584 Thereof Airbus Comm.** 146 125 548 223 816 306 … 543 Thereof Airbus Military 11 1 2 3 8 5 … 49 Eurocopter 65 31 199 94 277 157 … 259 Astrium 65 52 130 10

  36. Slide 36: Quarterly Order-intake Breakdown (cumulative)

    36 Quarterly Order-intake Breakdown (cumulative) in € m Q1 H1 9m FY 2012 2011 2012 2011 2012 2011 2012 2011 Airbus Division 7,877 3,748 20,955 52,394 40,659 85,485 … 117,874 Thereof Airbus Comm .* 7,530 3,647 19,782 52,086 39,109 85,421 … 117,301. Thereof Airbus Military 372 105 1,271 319 1,691 408

  37. Slide 37: Quarterly Order-book Breakdown

    37 Quarterly Order-book Breakdown in € m March June Sept. Dec. 2012 2011 2012 2011 2012 2011 2012 2011 Airbus Division 480,322 374,891 506,120 407,094 502,680 456,788 … 495,513 Thereof Airbus Comm .* 460,288 353,574 485,682 386,101 481,957 436,427 … 475,477 Thereof Airbus Military 21,272 22,487 21,6

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