Slide 1: Airbus Group 9M Results 2016
AIRBUS GROUP 9M RESULTS 2016 26 OCTOBER 2016 HARALD WILHELM Chief Financial Officer
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT 2 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: 9M Results 2016
3 9M RESULTS 2016 GROUP HIGHLIGHTS DIVISIONAL HIGHLIGHTS GUIDANCE 2016 & KEY TAKEAWAYS
Slide 4: 9M 2016 Highlights
9M 2016 HIGHLIGHTS 4 Healthy orders and backlog support ramp-up Delivery schedule Q4 loaded 9m 2016 financials reflect ongoing ramp-up and transition Further integration step-up launched 2016 Guidance*: Earnings guidance maintained. FCF guidance maintained excluding the impact from aircraf
Slide 5: 9M 2016 Commercial Positioning
9M 2016 COMMERCIAL POSITIONING 5 Airbus Group Order Book* Airbus Group External by Region (by value) Revenue Split by Division 10% 18% 6% 33% 11% 9% € 986 bn* € 43 bn t/o Defence € 36 bn t/o Defence € 7 bn 18% 73% 22% Asia Pacific Europe Airbus North America Middle East Airbus Helicopters Latin Amer
Slide 6: 9M 2016 Financial Performance
9M 2016 FINANCIAL PERFORMANCE 6 Revenues EBIT* before one-off 6 80 70 64 5 4,13 60 4 in € bn / RoS (%) 50 3 6,5% 5,7% 40 in € bn 30 2 20 43 43 2,80 1 2.42 10 0 0 9m 2015 9m 2016 9m 2015 9m 2016 EPS** before one-off FCF before M&A 4,00 3,41 2 1,2 in € bn 3,50 in € 3,00 1 2,50 0 2,00 -1 -1.8 (1) 1,50
Slide 7: 9M 2016 Profitability
9M 2016 PROFITABILITY 7 EBIT* Performance 9m 2016 EBIT* reported of € 2.4 bn 9m 2016 one-offs resulting from: 2,80 2,95 € - 723 m $ PDP mismatch / BS Revaluation in € bn 2,42 2,36 € + 75 m Portfolio (€ 19 m at Airbus and € 56 m at Airbus DS) € - 1,026 m A400M LMC Unchanged since H1 € - 3
Slide 8: Currency Hedge Policy
CURRENCY HEDGE POLICY 8 IN $ BILLION Net Exposure Forward Sales as of September 2016 Collars as of September 2016 Forward Sales and Collars as of December 2015 4,3 4,7 17,7 24,6 24,7 19,3 16,3 5.6* Average hedge 2016 2020 2017 2018 ² 2019 rates remaining 3 months and beyond 1.30* 1.29 1.25 1.25 1.23
Slide 9: 9M 2016 Cash Evolution
9M 2016 CASH EVOLUTION 9 IN € BILLION Customer 1.7 Financing -0.5 2.1 -4.5 -1.8 -1.9 Free Cash Flow before M&A -4.7 Temporary unavailability of European Export Credit Financing as a result of heightened compliance programme * Excluding reclassification of certain trade liabilities and including €
Slide 10: 9M Results 2016
10 9M RESULTS 2016 GROUP HIGHLIGHTS DIVISIONAL HIGHLIGHTS GUIDANCE 2016 & KEY TAKEAWAYS
Slide 11: Airbus
AIRBUS 11 Deliveries by programme IN € MILLION 9m 2016 9m 2015 Change (Units) Order Intake (net) 380 815 -53.4% 6% 3% (Units) 9% Order Book 6,749 6,755 -0.1% Order Intake (net) 63,103 100,061 -36.9% (Value) Order Book 939,079 914,692 2.7% 82% Single Aisle A330 Deliveries (Units) 462 446 3.6% A380 A3
Slide 12: Airbus Helicopters
AIRBUS HELICOPTERS 12 IN € MILLION 9m 2016 9m 2015 Change External revenue split Order Intake (net) 211 181 16.6% (Units) Order Book 784 837 -6.3% 44% Order Intake (net) 3,588 4,013 -10.6% 56% (Value) Order Book 11,075 11,818 -6.3% Deliveries (Units) 258 237 8.9% Civil Defence Revenues 4,282 4,423 -
Slide 13: Airbus Defence & Space
AIRBUS DEFENCE & SPACE 13 IN € MILLION External revenue split 9m 2016 9m 2015 Change Order Intake (net) 8,189 8,483 -3.5% 32% Order Book 38,355 41,657 -7.9% 68% Revenues 7,714 8,383 -8.0% R&D expenses** 237 245 -3.3% Platforms Services in % of revenues 3.1% 2.9% EBIT* before one off 440 431 2.1% 27%
Slide 14: 9M Results 2016
14 9M RESULTS 2016 GROUP HIGHLIGHTS DIVISIONAL HIGHLIGHTS GUIDANCE 2016 & KEY TAKEAWAYS
Slide 15: 2016 Guidance
2016 GUIDANCE 15 As the basis for its 2016 guidance, Airbus Group expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions Airbus Group 2016 earnings and FCF guidance is based on a constant perimeter: Airbus expects to deliv
Slide 16: Key Takeaways
KEY TAKEAWAYS 16 Healthy orders and backlog support ramp-up Continuing focus on ramp-up and transition Stepping up further integration to improve competitiveness Setting the groundwork to achieve EPS / FCF growth potential
Slide 17: Appendix
9M RESULTS 2016 APPENDIX AIRBUS GROUP
Slide 18: Expected Airbus Group Average Hedge Rates €/$
EXPECTED AIRBUS GROUP AVERAGE HEDGE RATES € VS. $ 18 Active exposure management 1.37 1.36 1.35 1.35 1.34 1.34 1.33 1.33 1.33 Average Hedge Rates 1.31* 1.31 1.30 FY 2015 1.34 1.29 FY 2016E 1.32 1.27 1.25 Q1 Q2 Q3 Q4 2016 E FY 2015 * Q3 2016 Actual
Slide 19: 9M 2016 Forex EBIT Impact Bridge
9M 2016 FOREX EBIT* IMPACT BRIDGE 19 IN € BILLION Bridge Hedge rates (from €/$ 1.35 to €/$ 1.33) 0.09 Other one-off forex effect including PDP reversal (0.37) Compared to 9m 2015 (0.28) * Pre-goodwill impairment and exceptionals
Slide 20: 9M 2016 Detailed Income Statement and Adjustments
9M 2016 DETAILED INCOME STATEMENT AND ADJUSTMENTS 20 IN € MILLION thereof adjustments thereof Impact on EBIT* Goodwill 9m 2016 * Financial 9m 2016 Impair. 9m 2016 * Operational HQ FX*** before Result & FV dep. one-off Dassault Airbus AD&S** Sale EBIT 2,356 2,363 2,415 (7) (366) 169 868 (723) in % of
Slide 21: 9M 2015 Detailed Income Statement and Adjustments
9M 2015 DETAILED INCOME STATEMENT AND ADJUSTMENTS 21 IN € MILLION thereof adjustments thereof Impact on EBIT* Goodwill 9m 2015 * Financial 9m 2015 Impair. 9m 2015 * Operational HQ FX*** before Result & FV dep. one-off Dassault AD&S** Sale EBIT 2,922 2,946 2,804 (24) (246) 748 (360) in % of revenues
Slide 22: Q3 2016 Key Figures
Q3 2016 KEY FIGURES 22 IN € MILLION Q3 2016 Q3 2015 Order Intake 34,083 58,004 Revenues 13,950 14,072 EBIT* before one-off 731 921 EBIT* 507 717 Net Income 50 376 FCF before M&A (1,493) (726) FCF before M&A before Customer Financing (1,535) (672) IN € MILLION Q3 2016 Q3 2015 Q3 2016 Q3 2015 Q3 2016
Slide 23: Airbus Group: Strong Liquidity Position
AIRBUS GROUP: STRONG LIQUIDITY POSITION AS AT 30 SEPTEMBER 2016 23 € 3 bn Credit Facility: Credit Facility (RSCF) Maturity 2021, undrawn Fully committed by 40 banks No financial covenants, no MAC clause Financing Liabilities: Short-term: € 2.5 bn Includes € 1.1 bn Commercial Paper € 11.3
Slide 24: Detailed Free Cash Flow
DETAILED FREE CASH FLOW 24 IN € MILLION 9m 2016 9m 2015 Net Cash position at the beginning of the period 10,003 9,092 Gross Cash Flow from Operations (1) 1,675 3,146 Change in working capital (2) (4,475) (3,302) of which Customer Financing (545) (117) Cash used for investing activities (3) 151 44 of
Slide 25: Net Cash Position
NET CASH POSITION 25 IN € MILLION 9m 2016 Dec. 2015 Gross Cash* 16,872 19,128 Financing Debts Short-term Financing Debts (2,494) (2,790) Long-term Financing Debts (8,825) (6,335) Reported Net Cash 5,553 10,003 Airbus non-recourse debt 44 94 Net Cash excl. non-recourse 5,597 10,097 * Excluding reclas
Slide 26: Customer Financing Exposure
CUSTOMER FINANCING EXPOSURE 26 IN € MILLION Airbus Airbus Helicopters 9m 2016 Dec. 2015 9m 2016 Dec. 2015 Closing rate € 1 = $ 1.12 $ 1.09 $ 1.12 $ 1.09 Total Gross Exposure 1,450 1,366 75 69 of which off-balance sheet 106 60 21 8 Estimated value of collateral (1,155) (922) (25) (20) Net Exposure 29
Slide 27: Airbus Customer Financing
AIRBUS CUSTOMER FINANCING 27 IN $ BILLION Airbus Customer Financing Gross Exposure Gross Exposure in $ bn 3.9 3.1 3.8 4.8 4.6 3.8 1.8 1.5 1.5 1.8 1.7 1.4 1.5 1.6 1.3 1.5 1.6 Net Exposure fully provisioned Net Exposure fully provisioned Net Exposure Net Exposure € 0.3 bn Gross Gross € 0.4 bn Exposure
Slide 28: Balance Sheet Highlights: Assets
BALANCE SHEET HIGHLIGHTS: ASSETS 28 IN € MILLION 9m 2016 Dec. 2015 Non-current Assets 54,303 53,438 of which Intangible & Goodwill 11,837 12,555 of which Property, plant & equipment 16,595 17,127 of which Investments & Financial assets 5,309 3,818 of which positive hedge mark-to-market 1,030 931 of
Slide 29: Balance Sheet Highlights: Liabilities
BALANCE SHEET HIGHLIGHTS: LIABILITIES 29 IN € MILLION 9m 2016 Dec. 2015 Total Equity 6,296 5,973 of which OCI (Other Comprehensive Income) (2,777) (4,316) of which Non-controlling interests 8 7 Total Non-current liabilities 48,564 46,700 of which pensions 8,869 7,172 of which other provisions 2,270
Slide 30: Shareholding Structure as at September 2016
SHAREHOLDING STRUCTURE AS AT 30 SEPTEMBER 2016 30 • Free Float 73.6% 0,0% 11,1% 11,1% Shareholder Agreement 26.4% 4,2% • SOGEPA • GZBV 73,6% • SEPI • Treasury shares 0.0% 772,712,046 shares issued as at 30 September 2016
Slide 31: Quarterly Order Intake Breakdown (Cumulative)
QUARTERLY ORDER INTAKE BREAKDOWN (CUMULATIVE) 31 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Airbus 4,311 17,217 32,302 46,334 63,103 100,061 139,062 Airbus Helicopters 1,004 1,428 2,338 2,726 3,588 4,013 6,168 Airbus Defence & Space 2,515 2,390 5,189 5,371 8,189 8,483 14,440 HQ
Slide 32: Quarterly Order Book Breakdown (Cumulative)
QUARTERLY ORDER BOOK BREAKDOWN (CUMULATIVE) 32 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Airbus 904,589 901,565 930,885 875,018 939,079 914,692 952,450 Airbus Helicopters 11,615 12,371 11,421 12,004 11,075 11,818 11,769 Airbus Defence & Space 42,596 41,854 37,665 41,683 38,355
Slide 33: Quarterly Revenues Breakdown (Cumulative)
QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) 33 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Airbus 8,668 8,565 21,061 21,081 31,511 31,119 45,854 Airbus Helicopters 1,158 1,285 2,687 2,950 4,282 4,423 6,786 Airbus Defence & Space 2,534 2,603 5,440 5,531 7,714 8,383 13,080 HQ / Elim
Slide 34: Quarterly EBIT* Breakdown (Cumulative)
QUARTERLY EBIT* BREAKDOWN (CUMULATIVE) 34 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Airbus 290 419 421 1,424 775 1,902 2,301 Airbus Helicopters 33 52 144 162 200 241 427 Airbus Defence & Space 90 133 478 (26) 583 149 745 HQ / Elim. (48) 637 813 669 805 654 613 Airbus Group 365
Slide 35: Quarterly EBIT* Before One-off Breakdown (Cumulative)
QUARTERLY EBIT* BEFORE ONE-OFF BREAKDOWN (CUMULATIVE) 35 IN € MILLION Q1 H1 9m FY 2016 2015 2016 2015 2016 2015 2016 2015 Airbus 407 569 1,270 1,533 1,838 2,226 2,780 Airbus Helicopters 33 52 144 162 200 241 427 Airbus Defence & Space 109 90 325 267 440 431 1,060 HQ / Elim. (48) (60) (55) (79) (63)