Airbus Se · EURONEXT:AIR
Airbus — H1 2017 Earnings Presentation
16 slides from Airbus's earnings presentation, Jul 31, 2017
Slide 1: H1 2017 Roadshow Presentation
AIRBUS H1 2017 Roadshow Presentation New York July 31st, 2017
Slide 2: H1 2017 Highlights
H1 2017 HIGHLIGHTS 2 Healthy commercial aircraft environment; robust backlog of 6,771 a/c supports ramp-up plans H1 financials reflect delivery pattern mainly impacted by engine issues Continued focus on ramp-up, operations and integration 2017 Guidance maintained
Slide 3: H1 2017 Commercial Positioning
H1 2017 COMMERCIAL POSITIONING 3 Airbus Order Book* Airbus External by Region (by value) Revenue Split by Division 9% 5% 16% 33% 13% 9% € 981 bn € 29 bn t/o defence € 38.2 bn t/o defence € 4.6 bn 19% 75% 21% ● Asia Pacific ● Middle East ● Commercial Aircraft ● Europe ● Latin America ● Helicopters ●
Slide 4: Market Environment
MARKET ENVIRONMENT 4 Global Economy Interest Rates Foreign Exchange Oil and Gas World real GDP and passenger traffic May 2017 % (year-over-year) Passenger Traffic 14% 12% +7.7% 10% 8% 6% 4% 2% 0% -2% -4% World real GDP -6% -8% World passenger traffic (RPKs*) -10% JQ1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q
Slide 5: Long Term Demand for Aircraft
LONG TERM DEMAND FOR AIRCRAFT 5 2016-2035 demand for 33,070 aircraft Propensity to travel 2016 trips per Capita Bubbles proportional 15 14,3 100% To country population 75% Thousand aircraft 10 6,8 50% 5,6 5 2,7 2,5 25% 1,2 1,1 0 0% Asia Europe North Latin Middle CIS Africa 2016 GDP per Capita Pacifi
Slide 6: Commercial Aircraft Backlog and Deliveries
COMMERCIAL AIRCRAFT BACKLOG AND DELIVERIES 6 Airbus backlog* well aligned with regional needs and Over 10 years production in backlog demand forecast in units 6 831 6 874 6 386 5 559 Europe 4 682 & CIS North 4 437 America Asia 16% / 23% 3 552 Pacific 3 715 9% / 17% 3 421 3 488 688 Middle 29% / 42% E
Slide 7: Comprehensive Commercial Aircraft Product Line for Any Market
COMPREHENSIVE COMMERCIAL AIRCRAFT PRODUCT LINE FOR ANY MARKET 7 A380: 317 orders from 18 customers Capacity to capture traffic growth A350XWB: 847 orders from 45 customers Long-range and ultra-long haul routes A330 Family: 1,685 orders from 115 customers Flying from 30 minutes to over 15 hours A320
Slide 8: Key Programme Status
KEY PROGRAMME STATUS 8 A320 SA remains very healthy: essentially sold out until 2022, which protects our ramp-up plans Deliveries end June: 239 A320 family delivered, t/o 59 A320/A321neo Neo ramp-up remains challenging. Customers are still experiencing a number of in-service engine issues We still t
Slide 9: H1 2017 Financial Performance
H1 2017 FINANCIAL PERFORMANCE 9 Revenues EBIT Adjusted 5,8% in € bn / RoS (%) 3,8% in € bn 28,8 28,7 1,68 1,10 H1 2016 H1 2017 H1 2016 H1 2017 EPS(1) Adjusted FCF before M&A and Customer Financing (2,1) in € (2,6) 1,40 in € bn 0,83 TBU H1 2016 H1 2017 H1 2016 H1 2017 (1) H1 2017 Average number of sh
Slide 10: H1 2017 Profitability
H1 2017 PROFITABILITY 10 EBIT Performance H1 2017 EBIT reported of € 1.79 bn H1 2017 Adjustments resulting from: €- 70 m A400M LMC 1,85 in € bn 1,68 1,79 €+ 174 m $ PDP mismatch / BS Revaluation 1,10 €+ 28 m Other AD Portfolio €+ 560 m Defence Electronics net capital gain €+ 692 m Net Adjustments H1
Slide 11: Currency Hedge Policy
CURRENCY HEDGE POLICY 11 IN $ BILLION Net Exposure ● Forward Sales as of June 2017 ● Collars as of June 2017 ● Forward Sales and Collars as of Dec. 2016 3,8 13,0 4,6 25,2 1.6 21,3 12,1 16,1 12,1 Average hedge rates 2017 2018 2019 2020 2021 remaining 6 months and beyond 1.26 1.25 1.24 1.22 1.22 € vs
Slide 12: H1 2017 Cash Evolution
H1 2017 CASH EVOLUTION 12 IN € BILLION +1.3 +0.6 -3.1 -0.7 -1.0 -0.2 Free Cash Flow before M&A: € - 2.5 bn t/o Customer Financing: € - 0.5 bn 11,1 Free Cash Flow before M&A and Customer Financing € - 2.1 bn 7.9 Net Cash Gross Cash Flow Change in Cash used for M&A Shareholder Pensions & Net Cash posi
Slide 13: 2017 Guidance
2017 GUIDANCE 13 As the basis for its 2017 guidance, Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions Airbus 2017 earnings and FCF guidance is based on a constant perimeter Airbus expects to deliver more than 70
Slide 14: 2017 Key Priorities
2017 KEY PRIORITIES 14 Focus on key programmes Drive innovation and digitalisation for the longer term to secure our future Work to secure EPS / FCF as platform to deliver 2018 / 2019 growth
Slide 15: Driving Earnings and Cash Performance
DRIVING EARNINGS AND CASH PERFORMANCE 15 EPS Growth FCF Growth End of End of decade decade Cash Boost Conversion EPS Growth ~1 Performance A350 A400M* Turning Profitable A320 Capex Volume and Price Reduction FX Working capital Hedging Impact Control End End 2017 2017 * A400M will continue to weigh s
Slide 16: Increasing Shareholder Returns
INCREASING SHAREHOLDER RETURNS 16 Total Shareholder Returns* ~ € 7 bn 2,4 FCF 1,7 in € bn € 8.4 bn 1,2 1,0 0,6 2,8 3,2 0,4 2,0 1,2 2012 2013 2014 2015 2016 2017 ** in € bn Dividend Share Buyback (0,8) Dividend per Share 2012 2013 2014 2015 2016 1.35** 1.30 1.20 FCF FCF before M&A, before customer fi