Airbus Se · EURONEXT:AIR
Airbus — Non-Deal Roadshow (February 2017)
16 slides from Airbus's roadshow presentation, February 2017
Slide 1: Airbus FY 2016 Roadshow Presentation
AIRBUS FY 2016 Roadshow Presentation
Slide 2: FY 2016 Highlights
FY 2016 HIGHLIGHTS 2 Delivered all guidance KPIs Commercial a/c net BtB>1; record deliveries and backlog supports ramp-up Further steps towards efficiency initiated to prepare the future Future EPS / FCF growth confirmed A400M FY16 € 2.2 bn charge: programme remains an area of concern
Slide 3: Market Environment
MARKET ENVIRONMENT 3 Global Economy Interest Rates Foreign Exchange Oil and Gas World real GDP and passenger traffic December 2016 % (year-over-year) Passenger Traffic 14% 12% +8.8% 10% 8% 6% 4% 2% 0% -2% -4% World real GDP -6% -8% World passenger traffic (RPKs*) -10% JQ1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
Slide 4: Airline Profitability
AIRLINE PROFITABILITY 4 Airline Profitability Orders and Deliveries 40 12% 1,600 30 1,400 8% 20 1,200 4% in $ bn 10 1,000 0 0% 800 -10 600 -4% -20 400 -8% -30 200 -40 -12% 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net Profit EBIT Margin Deliveries Ne
Slide 5: Interest Rates / Airline Financing
INTEREST RATES / AIRLINE FINANCING 5 Interest rates Financing Sources for Airbus Deliveries (in %) FY16 FY15 Manufacturer 6% 100% 1% 2% Capital Markets 90% 5% 6% 5% ECA 0% 7% 80% 4% 70% 49% 45% 3% 60% Lessor 50% 2% 40% 1% 30% 0% 20% Airline -1% 10% 45% 40% 2007 2008 2009 2010 2011 2012 2013 2014 201
Slide 6: FY 2016 Commercial Positioning
FY 2016 COMMERCIAL POSITIONING 6 Airbus Order Book* Airbus External by Region (by value) Revenue Split by Division 10% 18% 5% 33% 13% 9% € 1,060 bn € 67 bn t/o defence € 39.8 bn t/o defence € 11.1 bn 18% 73% 21% ● Asia Pacific ● Middle East ● Commercial Aircraft ● Europe ● Latin America ● Helicopter
Slide 7: Backlog and Deliveries
BACKLOG AND DELIVERIES 7 Airbus backlog* well aligned with regional Over 10 years production in backlog needs and demand forecast in units 2016 Cancellation rate** of 2.5% (1.3% excluding Kingfisher) 6,831 6,874 6,386 5,559 Europe North & CIS Asia 4,682 America 4,437 16% / 24% Pacific 9% / 18% Middl
Slide 8: Long Term Demand for Aircraft
LONG TERM DEMAND FOR AIRCRAFT 8 2016-2035 demand for 33,070 aircraft Propensity to travel Bubbles proportional to country population 15 100% 13.5 75% Thousand aircraft 6.6 50% 5.8 25% 2.6 2.4 1.2 1.0 0 0% Asia Europe North Latin Middle CIS Africa Pacific America America East Asia Pacific Europe Nort
Slide 9: Strong Product Portfolio – Focus on Ramp Up and Transition
STRONG PRODUCT PORTFOLIO – FOCUS ON RAMP UP AND TRANSITION 9 Product portfolio positioned to capture growth A320: essentially sold out until 2022; significant overbooking through 2021, which protects our ramp-up plans to rate 60 in 2019 A330: Solid booking level with 83 additional net orders in 2016
Slide 10: FY 2016 Financial Performance
FY 2016 FINANCIAL PERFORMANCE 10 Revenues EBIT Adjusted 6.4% 6.6% 5.9% in € bn / RoS (%) in € bn 67 4.02 4.11 3.96 64 61 FY'14 FY'15 FY'16 FY'14 FY'15 FY'16 EPS(1) Adjusted FCF before M&A and Customer Financing in € bn 3.32 3.39 3.31 1.3 1.4 in € 1.0 FY'14 FY'15 FY'16 FY'14 FY'15 FY'16 ► Guidance KP
Slide 11: FY 2016 Profitability
FY 2016 PROFITABILITY 11 EBIT Performance FY 2016 EBIT reported of € 2.3 bn 4.11 3.96 4.06 FY 2016 Adjustments resulting from: € - 2,210 m A400M LMC € - 930 in € bn m $ PDP mismatch / BS Revaluation 2.26 € - 182 m Restructuring/Transformation €- 33 m Portfolio (€ 19 m at Airbus and - € 52 m at Airbu
Slide 12: Currency Hedge Policy
CURRENCY HEDGE POLICY 12 IN € BILLION Net Exposure ● Forward Sales as of Dec. 2016 ● Collars as of Dec. 2016 ● Forward Sales and Collars as of Dec. 2015 23.5 (1) 4.3 4.4 24.9 25.1 20.6 0.8 13.4 8.9 Average hedge 2021 2016 2017 2018 2019 2020 rates and beyond 1.32 (1) 1.29 1.25 1.24 1.23 1.22 € vs $
Slide 13: FY 2016 Cash Evolution
FY 2016 CASH EVOLUTION 13 IN € BILLION +0.6 +3.6 +2.0 -2.8 -1.7 -0.3 -0.3 Free Cash Flow before M&A and customer financing: +1.4 11.1 10.0 Net Cash Gross Cash Change in Cash used Customer M&A(3) Shareholder Pensions & Net Cash position Dec. Flow from Working for investing Financing Return (4) Others
Slide 14: 2017 Guidance and Dividend Proposal
2017 GUIDANCE AND DIVIDEND PROPOSAL 14 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 t
Slide 15: Driving Earnings and Cash Performance
DRIVING EARNINGS AND CASH PERFORMANCE 15 EPS Growth FCF Growth End of End of decade decade Capex Cash conv. ~ 1 Boost Performance Reduction A350 Turning Working Capital profitable Control Business A320 Volume & Price Performance FX Hedging impact A400M* 2017 2017 EPS FCF before M&A * A400M will cont
Slide 16: Key Priorities
KEY PRIORITIES 16 Deliver commercial aircraft ramp-up and transition De-risk A400M and strengthen programme execution Implement restructuring Investment in our future for improved efficiency ► Deliver EPS / FCF growth