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Airbus — H1 2016 Earnings Presentation
35 slides from Airbus's earnings presentation, Jul 27, 2016
Slide 1: Airbus Group H1 Results 2016
AIRBUS GROUP H1 RESULTS 2016 27 JULY 2016 TOM ENDERS HARALD WILHELM Chief Executive Officer 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: H1 Results 2016
3 H1 RESULTS 2016 GROUP HIGHLIGHTS DIVISIONAL HIGHLIGHTS GUIDANCE 2016 & KEY TAKEAWAYS
Slide 4: H1 2016 Highlights
H1 2016 HIGHLIGHTS 4 Robust and diversified commercial backlog supporting ramp-up H1 financials driven by back-loaded delivery schedule Continued focus on ramp-up and transition A400M and A350 programme charges recognised in Q2 2016 Significant progress on strategy to focus on core – mater
Slide 5: H1 2016 Commercial Positioning
H1 2016 COMMERCIAL POSITIONING 5 Airbus Group Order Book* Airbus Group External by Region (by value) Revenue Split by Division 10% 19% 6% 33% 11% € 978 bn* 8% € 29 bn t/o Defence € 37 bn t/o Defence € 5 bn 18% 73% 22% Asia Pacific Europe Airbus North America Middle East Airbus Helicopters Latin Amer
Slide 6: H1 2016 Financial Performance
H1 2016 FINANCIAL PERFORMANCE 6 Revenues EBIT* before one-off 80 6 70 64 60 5 4.13 in € bn / RoS (%) 50 4 in € bn 40 3 30 6.5% 5.9% 2 20 29 29 1 1.88 10 1.68 0 0 H1 2015 H1 2016 H1 2015 H1 2016 EPS** before one-off FCF before M&A 4.00 2 3.41 1.2 3.50 2 in € bn 3.00 1 in € 2.50 1 2.00 0 1.50 -1 -1.0
Slide 7: H1 2016 Profitability
H1 2016 PROFITABILITY 7 EBIT* Performance H1 2016 EBIT* reported of € 1.9 bn 2.23 H1 2016 one-offs resulting from: 1.88 1.86 € - 1,026 m A400M LMC in € bn 1.68 € - 385 m A350 LMC € - 509 m $ PDP mismatch / BS Revaluation € + 1,139 m ASL creation H1 2015 H1 2016 € + 868 m Dassault dispo
Slide 8: Currency Hedge Policy
CURRENCY HEDGE POLICY 8 IN $ BILLION Net Exposure Forward Sales as of June 2016 Collars as of June 2016 Forward Sales and Collars as of December 2015 4.3 11.9 4.2 24.7 24.6 18.3 11.3* 11.5 Average hedge 2016 2020 2017 2018 ² 2019 rates remaining 6 months and beyond 1.31* 1.29 1.25 1.25 1.24 € vs $ F
Slide 9: H1 2016 Cash Evolution
H1 2016 CASH EVOLUTION 9 IN € BILLION 1.3 2.1 -3.3 -1.7 -1.2 Free Cash Flow before M&A -3.2 Temporary unavailability of European Export Credit Financing as a result of heightened compliance programme * Excluding reclassification of certain trade liabilities ** Thereof Capex of € - 1.3 bn; *** M&A
Slide 10: Strong Liquidity Position as at June 2016
AIRBUS GROUP: STRONG LIQUIDITY POSITION AS AT 30 JUNE 2016 10 € 3 bn Credit Facility: Credit Facility (RSCF) Maturity 2020, undrawn Fully committed by 40 banks No financial covenants, no MAC clause Financing Liabilities: € 12.3 bn Short-term: € 3.4 bn Includes € 1.1 bn Commercial Paper a
Slide 11: H1 Results 2016 – Divisional Highlights
11 H1 RESULTS 2016 GROUP HIGHLIGHTS DIVISIONAL HIGHLIGHTS GUIDANCE 2016 & KEY TAKEAWAYS
Slide 12: Airbus
AIRBUS 12 Deliveries by programme IN € MILLION H1 2016 H1 2015 Change (Units) Order Intake (net) 183 348 -47.4% 5% 4% (Units) 9% Order Book 6,716 6,430 4.4% Order Intake (net) 32,302 46,334 -30.3% (Value) Order Book 930,885 875,018 +6.4% 82% Deliveries (Units) 298 304 -2.0% Single Aisle A330 A380 A3
Slide 13: Airbus Helicopters
AIRBUS HELICOPTERS 13 IN € MILLION H1 2016 H1 2015 Change External revenue split Order Intake (net) 127 135 -5.9% (Units) Order Book 795 876 -9.2% 47% Order Intake (net) 2,338 2,726 -14.2% 53% (Value) Order Book 11,421 12,004 -4.9% Deliveries (Units) 163 152 +7.2% Civil Defence Revenues 2,687 2,950
Slide 14: Airbus Defence & Space
AIRBUS DEFENCE & SPACE 14 IN € MILLION External revenue split H1 2016 H1 2015 Change Order Intake (net) 5,189 5,371 -3.4% 69% Order Book 37,665 41,683 -9.6% Revenues 5,440 5,531 -1.6% 31% R&D expenses** 152 159 -4.4% in % of revenues 2.8% 2.9% Platforms Services EBIT* before one off 325 267 +21.7% i
Slide 15: H1 Results 2016 – Guidance & Key Takeaways
15 H1 RESULTS 2016 GROUP HIGHLIGHTS DIVISIONAL HIGHLIGHTS GUIDANCE 2016 & KEY TAKEAWAYS
Slide 16: 2016 Guidance
2016 GUIDANCE 16 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 confirms its 2016 earnings and Free Cash Flow guidance based on a constant perimeter: Ai
Slide 17: Key Takeaways
KEY TAKEAWAYS 17 Robust and diversified backlog, supporting ramp-up plans Continued focus on ramp-up and transition EPS / FCF growth story confirmed
Slide 18: Appendix
18 H1 RESULTS 2016 APPENDIX
Slide 19: Expected Airbus Group Average Hedge Rates € vs. $
EXPECTED AIRBUS GROUP AVERAGE HEDGE RATES € VS. $ 19 Active exposure management 1.37 1.36 1.35 1.35 1.34 1.33 * 1.33 1.34 Average 1.33 Hedge Rates 1.31 1.31 FY 2015 1.34 1.30 1.29 FY 2016E 1.32 1.27 1.25 Q1 Q2 Q3 Q4 2016 E FY 2015 * Q2 2016 Actual
Slide 20: H1 2016 Forex EBIT Impact Bridge
H1 2016 FOREX EBIT* IMPACT BRIDGE 20 IN € BILLION Bridge Hedge rates (from €/$ 1.35 to €/$ 1.34) 0.09 Other one-off forex effect including PDP reversal (0.37) Compared to H1 2015 (0.28) * Pre-goodwill impairment and exceptionals
Slide 21: H1 2016 Detailed Income Statement and Adjustments
H1 2016 DETAILED INCOME STATEMENT AND ADJUSTMENTS 21 IN € MILLION thereof one-offs thereof Impact on EBIT* Goodwill H1 2016 * Financial H1 2016 Impair. H1 2016 * Operational HQ FX*** before Result & FV dep. one-off Dassault Airbus AD&S** Sale EBIT 1,851 1,856 1,684 (5) (366) 179 868 (509) in % of re
Slide 22: H1 2015 Detailed Income Statement and Adjustments
H1 2015 DETAILED INCOME STATEMENT AND ADJUSTMENTS 22 IN € MILLION thereof one-offs thereof Impact on EBIT* Goodwill H1 2015 * Financial H1 2015 Impair. H1 2015 * Operational HQ FX*** before Result & FV dep. one-off Dassault AD&S** Sale EBIT 2,210 2,229 1,883 (19) (257) 748 (145) in % of revenues 7.6
Slide 23: Q2 2016 Key Figures
Q2 2016 KEY FIGURES 23 IN € MILLION Q2 2016 Q2 2015 Order Intake 31,890 32,925 Revenues 16,572 16,815 EBIT* before one-off 1,183 1,232 EBIT* 1,491 988 Net Income 1,362 732 FCF before M&A (250) 111 IN € MILLION Q2 2016 Q2 2015 Q2 2016 Q2 2015 Q2 2016 Q2 2015 Revenues EBIT* before one-off EBIT* Airbus
Slide 24: Detailed Free Cash Flow
DETAILED FREE CASH FLOW 24 IN € MILLION H1 2016 H1 2015 Net Cash position at the beginning of the period 10,003 9,092 Gross Cash Flow from Operations (1) 1,251 2,049 Change in working capital (2) (3,274) (2,101) of which Customer Financing (587) (63) Cash used for investing activities (3) 904 601 of
Slide 25: Net Cash Position
NET CASH POSITION 25 IN € MILLION H1 2016 Dec. 2015 Gross Cash* 19,540 19,128 Financing Debts Short-term Financing Debts (3,411) (2,790) Long-term Financing Debts (8,933) (6,335) Reported Net Cash 7,196 10,003 Airbus non-recourse debt 87 94 Net Cash excl. non-recourse 7,283 10,097 * Excluding reclas
Slide 26: Customer Financing Exposure
CUSTOMER FINANCING EXPOSURE 26 IN € MILLION Airbus Airbus Helicopters June 2016 Dec. 2015 June 2016 Dec. 2015 Closing rate € 1 = $ 1.11 $ 1.09 $ 1.11 $ 1.09 Total Gross Exposure 1,528 1,366 65 69 of which off-balance sheet 45 60 10 8 Estimated value of collateral (1,174) (922) (14) (20) Net Exposure
Slide 27: Airbus Customer Financing
AIRBUS CUSTOMER FINANCING 27 IN $ BILLION Additions Sell Down Amortization Net change 1.5 1.5 1.0 0.9 1.0 0.9 0.8 0.8 0.4 0.6 0.5 0.6 0.5 0.6 0.6 0.4 0.3 Airbus Customer Financing Gross (0.3) (0.7) (0.6) (0.7) (0.2) (0.2) (0.7) (0.7) (0.1) (0.9) (0.7) (0.2) (1.0) (1.1) (0.7) (0.1) Exposure (0.1) (0.
Slide 28: Balance Sheet Highlights: Assets
BALANCE SHEET HIGHLIGHTS: ASSETS 28 IN € MILLION H1 2016 Dec. 2015 Non-current Assets 54,061 53,438 of which Intangible & Goodwill 11,849 12,555 of which Property, plant & equipment 16,598 17,127 of which Investments & Financial assets 5,184 3,818 of which positive hedge mark-to-market 1,004 931 of
Slide 29: Balance Sheet Highlights: Liabilities
BALANCE SHEET HIGHLIGHTS: LIABILITIES 29 IN € MILLION H1 2016 Dec. 2015 Total Equity 6,053 5,973 of which OCI (Other Comprehensive Income) (3,369) (4,316) of which Non-controlling interests 1 7 Total Non-current liabilities 48,550 46,700 of which pensions 8,472 7,172 of which other provisions 2,593
Slide 30: Shareholding Structure as at June 2016
SHAREHOLDING STRUCTURE AS AT 30 JUNE 2016 30 Free Float 73.6% 0.0% 11.1% • Institutional Investors & Retail 11.1% Shareholder Agreement 26.4% 4.2% • SOGEPA • GZBV 73.6% • SEPI Treasury shares 0.0% • Treasury shares (without economic or voting rights) 772,678,546 shares issued as at 30 June 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 46,334 100,061 139,062 Airbus Helicopters 1,004 1,428 2,338 2,726 4,013 6,168 Airbus Defence & Space 2,515 2,390 5,189 5,371 8,483 14,440 HQ / Elim. (585) (41)
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 904,589 901,565 930,885 875,018 914,692 952,450 Airbus Helicopters 11,615 12,371 11,421 12,004 11,818 11,769 Airbus Defence & Space 42,596 41,854 37,665 41,683 41,657 42,861 HQ / El
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 31,119 45,854 Airbus Helicopters 1,158 1,285 2,687 2,950 4,423 6,786 Airbus Defence & Space 2,534 2,603 5,440 5,531 8,383 13,080 HQ / Elim. (177) (375) (433)
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 1,902 2,301 Airbus Helicopters 33 52 144 162 241 427 Airbus Defence & Space 90 133 478 (26) 149 745 HQ / Elim. (48) 637 813 669 654 613 Airbus Group 365 1,241 1,856 2,2
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 2,226 2,780 Airbus Helicopters 33 52 144 162 241 427 Airbus Defence & Space 109 90 325 267 431 1,060 HQ / Elim. (48) (60) (55) (79) (94) (135) Airbus G