Slide 1: Airbus 9m Results 2017
AIRBUS 9m Results 2017 31 October 2017 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: Company Highlights
9m Results Company Highlights Divisional Highlights Guidance Highlights 2017
Slide 4: 9M 2017 Highlights
9M 2017 HIGHLIGHTS 4 Healthy commercial aircraft market; robust backlog supports ramp-up plans Engine delays impacting 9m results Focus on Q4 deliveries and ramp-up 2017 Guidance confirmed
Slide 5: 9M 2017 Commercial Positioning
9M 2017 COMMERCIAL POSITIONING 5 Airbus Order Book* Airbus External by Region (by value) Revenue Split by Division 9% 16% 5% 33% 13% 9% € 945 bn € 43 bn t/o defence € 38.2 bn t/o defence € 6.4 bn 19% 75% 21% ● Asia Pacific ● Middle East ● Commercial Aircraft ● Europe ● Latin America ● Helicopters ●
Slide 6: 9M 2017 Financial Performance
9M 2017 FINANCIAL PERFORMANCE 6 Revenues EBIT Adjusted 5,6% 4,2% in € bn / RoS (%) in € bn 42,7 43,0 2,41 1,80 9m 2016 9m 2017 9m 2016 9m 2017 EPS (1) Adjusted FCF before M&A and Customer Financing (3,3) (4,2) 1,96 in € bn in € 1,38 9m 2016 9m 2017 9m 2016 9m 2017 (1) 9m 2017 Average number of share
Slide 7: 9M 2017 Profitability
9M 2017 PROFITABILITY 7 EBIT Performance 9m 2017 EBIT Reported of € 2.3 bn 9m 2017 Adjustments resulting from: €- 150 m A400M LMC in € bn 2,41 2,36 2,31 €+ 43 m $ PDP mismatch / BS revaluation 1,80 €+ 19 m Other AD Portfolio €+ 604 m Defence Electronics net capital gain €+ 516 m Net Adjustments 9m 2
Slide 8: Currency Hedge Policy
CURRENCY HEDGE POLICY 8 IN $ BILLION Net Exposure ● Forward Sales as of Sep. 2017 ● Collars as of Sep. 2017 ● Forward Sales and Collars as of Dec. 2016 3,8 4,6 19,2 1,7 25,1 21,3 16,8 12,9 6,1 Average hedge rates 2017 2018 2019 2020 2021 remaining 3 months and beyond 1.25 1.25 1.24 1.22 1.22 € vs $
Slide 9: 9M 2017 Cash Evolution
9M 2017 CASH EVOLUTION 9 IN € BILLION +1.9 +0.6 -4.5 -1.2 -1.0 -0.1 11,1 Free Cash Flow before M&A: € - 3.8 bn t/o Customer Financing: € - 0.4 bn Free Cash Flow before M&A and 6,7 Customer Financing € - 3.3 bn Net Cash Gross Cash Flow Change in Cash used for M&A Shareholder Pensions & Net Cash posit
Slide 10: IFRS 15
IFRS 15 10 IFRS 15 will become effective 1st January 2018 IFRS 15 Restate FY17 results and recognise a cumulative catch-up adjustment to opening equity requirements balance as of 1st January 2017 - Retrospective approach FY18 will be prepared under full application of IFRS 15 Timing of revenue recog
Slide 11: 9m Results: Divisional Highlights
9m Results Company Highlights Divisional Highlights Guidance Highlights 2017
Slide 12: Commercial Aircraft
COMMERCIAL AIRCRAFT 12 IN € MILLION 9m 2017 9m 2016 Change Deliveries by Programme (units) 2% Order Intake (net) 271 380 -28.7% 11% Units 10% Order Book 6,691 6,749 -0.9% Order Intake (net) 40,814 63,103 -35.3% 77% Value Order Book 897,128 939,079 -4.5% ● A320 ● A350 Deliveries (units) 454 462 -1.7%
Slide 13: Helicopters
HELICOPTERS 13 IN € MILLION 9m 2017 9m 2016 CHANGE External Revenue Split Order Intake (net) 210 211 -0.5% Units Order Book 710 784 -9.4% 50% 50% Order Intake (net) 4,729 3,588 31.8% Value Order Book 11,636 11,075 5.1% ● Defence ● Civil Deliveries (units) 266 258 3.1% Revenues 4,388 4,282 2.5% R&D E
Slide 14: Defence and Space
DEFENCE AND SPACE 14 IN € MILLION 9m 2017 9m 2016 CHANGE External Revenue Split Order Intake (net) 5,714 8,189 -30.2% 33% Order Book 38,551 38,355 0.5% 67% Revenues 6,733 7,714 -12.7% R&D Expenses 220 237 -7.2% ● Platforms ● Services in % Revenues 3.3% 3.1% EBIT Adjusted 357 436 -18.1% in % Revenues
Slide 15: 9m Results: Guidance Highlights
9m Results Company Highlights Divisional Highlights Guidance Highlights 2017
Slide 16: 2017 Guidance
2017 GUIDANCE 16 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 17: Wrap-up
WRAP-UP 17 9m performance on track, affected by engine issues Ramp-up prepared and committed by engine manufacturers for Q4 2017 Guidance confirmed Shaping the future Focused on EPS / FCF growth
Slide 18: 9m Results 2017 Appendix
9m Results sooenon 2017 AIRBUS
Slide 19: Expected Airbus Average Hedge Rates € vs. $
EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $ 19 Active exposure management 1.38 1.37 Average 1.36 Hedge Rates 1.35 1.34 FY 2016 1.32 1.34 1.33 1.33 FY 2017E 1.29 1.32 1.33 1.31 1.31 1.30 1.30 1.29 1.28 1.29 1.27 1.26 1.27 (1) 1.25 1.24 1.25 1.23 Q1 Q2 Q3 Q4 FY 2017 E FY 2016 (1) Q3 actual
Slide 20: 9M 2017 Detailed Income Statement and Adjustments
9M 2017 DETAILED INCOME STATEMENT AND ADJUSTMENTS 20 IN € MILLION thereof Adjustments Impact on EBIT Financial 9m 2017 9m 2017 Operational FX Result Adjusted Comm. a/c Defence and Space (1) and DS (2) EBIT 2,312 1,796 473 43 in % of revenues 5.4% 4.2% Interest income 134 134 Interest expenses (385)
Slide 21: 9M 2016 Detailed Income Statement and Adjustments
9M 2016 DETAILED INCOME STATEMENT AND ADJUSTMENTS 21 IN € MILLION thereof Adjustments Impact on EBIT Financial 9m 2016 9m 2016 Operational HQ FX Result Adjusted Commercial Defence and Dassault Comm. a/c Aircraft Space (1) sale and DS (2) EBIT 2,356 2,408 (366) 169 868 (723) in % of revenues 5.5% 5.6
Slide 22: Q3 2017 Key Figures
Q3 2017 KEY FIGURES 22 IN € MILLION Q3 2017 Q3 2016 Order Intake 13,626 34,083 Revenues 14,244 13,950 EBIT Adjusted 697 729 EBIT 521 505 Net Income 348 50 FCF before M&A (1,234) (1,493) FCF before M&A and Customer Financing (1,251) (1,535) IN € MILLION Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016
Slide 23: Airbus: Strong Liquidity Position as at September 2017
AIRBUS: STRONG LIQUIDITY POSITION AS AT 30 SEPTEMBER 2017 23 € 3.0 bn Credit Facility: Credit Facility (RSCF) Maturity 2021, undrawn Fully committed by 40 banks No financial covenants, no MAC clause Financing Liabilities: € 11.3 bn of which long-term : € 9.5 bn Includes € 3.5 bn EMTN, € 0.5 bn Conve
Slide 24: Detailed Free Cash Flow
DETAILED FREE CASH FLOW 24 IN € MILLION 9m 2017 9m 2016 Net Cash position at the beginning of the period 11,113 10,003 Gross Cash Flow from Operations (1) 1,915 1,675 Change in working capital (2) (4,459) (4,475) Cash used for investing activities (3) (664) 151 of which Industrial Capex (additions)
Slide 25: Net Cash Position
NET CASH POSITION 25 IN € MILLION Sep. 2017 Dec. 2016 Gross Cash 17,980 21,591 Financing Debts (11,262) (10,478) Short-term Financing Debts (1,748) (1,687) Long-term Financing Debts (9,514) (8,791) Reported Net Cash 6,718 11,113 Airbus non-recourse debt (58) (43) Net Cash excl. non-recourse 6,776 11
Slide 26: Customer Financing Exposure
CUSTOMER FINANCING EXPOSURE 26 IN € MILLION Sep. 2017 Dec. 2016 Sep. 2017 Dec. 2016 Commercial Aircraft Helicopters Closing rate € 1 = $ 1.18 $ 1.05 $ 1.18 $ 1.05 Total Gross Exposure 1,589 1,572 141 119 of which off-balance sheet 150 182 5 21 Estimated value of collateral (1,259) (1,157) (81) (60)
Slide 27: Airbus Commercial Aircraft Customer Financing
AIRBUS COMMERCIAL AIRCRAFT CUSTOMER FINANCING 27 IN $ BILLION Additions Sell Down Amortization Net change 1,5 1,5 1,0 1,0 0,8 0,9 0,8 0,9 0,8 0,7 Commercial Aircraft 0,6 0,5 0,6 0,5 0,6 0,6 0,4 0,3 Customer Financing Gross Exposure (0,3) (0,6) (0,5) (0,4) (0,7) (0,2) (0,2) (0,7) (0,7) (0,7) (0,7) (0
Slide 28: Balance Sheet Highlights: Assets
BALANCE SHEET HIGHLIGHTS: ASSETS 28 IN € MILLION Sep. 2017 Dec. 2016 Non-current Assets 54,728 55,037 of which Intangible & Goodwill 11,658 12,068 of which Property, plant & equipment 16,546 16,913 of which Investments & Financial assets 5,876 5,263 of which positive hedge mark-to-market 2,470 893 o
Slide 29: Balance Sheet Highlights: Liabilities
BALANCE SHEET HIGHLIGHTS: LIABILITIES 29 IN € MILLION Sep. 2017 Dec. 2016 Total Equity 11,499 3,652 of which OCI (Other Comprehensive Income) 1,845 (4,845) of which Non-controlling interests 0 (5) Non-current liabilities 47,307 50,789 of which pensions 8,179 8,342 of which other provisions 2,212 2,4
Slide 30: Shareholding Structure as at September 2017
SHAREHOLDING STRUCTURE AS AT 30 SEPTEMBER 2017 30 Free Float 73.6% 4.2% 11.1% Shareholder Agreement 26.4% 11.1% SOGEPA 11.1% GZBV 11.1% 73.6% SEPI 4.2% Treasury Shares 0.0% 774,467,480 shares issued as at 30 September 2017
Slide 31: Quarterly Order Intake Breakdown (Cumulative)
QUARTERLY ORDER INTAKE BREAKDOWN (CUMULATIVE) 31 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 1,153 4,311 30,272 32,302 40,814 63,103 114,938 Helicopters 1,417 1,004 3,630 2,338 4,729 3,588 6,057 Defence and Space (1) 1,521 2,515 3,616 5,189 5,714 8,189 15,393
Slide 32: Quarterly Order Book Breakdown (Cumulative)
QUARTERLY ORDER BOOK BREAKDOWN (CUMULATIVE) 32 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 981,958 904,589 932,291 930,885 897,128 939,079 1,010,200 Helicopters 11,392 11,615 11,996 11,421 11,636 11,075 11,269 Defence and Space (1) 39,421 42,596 38,708 37,665
Slide 33: Quarterly Revenues Breakdown (Cumulative)
QUARTERLY REVENUES BREAKDOWN (CUMULATIVE) 33 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 9,825 8,668 21,789 21,061 32,643 31,511 49,237 Helicopters 1,291 1,158 2,921 2,687 4,388 4,282 6,652 Defence and Space (1) 2,114 2,534 4,625 5,440 6,733 7,714 11,854 HQ /
Slide 34: Quarterly EBIT Breakdown (Cumulative)
QUARTERLY EBIT BREAKDOWN (CUMULATIVE) 34 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 336 289 1,078 420 1,518 773 1,543 Helicopters (2) 33 93 144 165 200 308 Defence and Space (1) 620 88 816 475 900 579 (93) HQ / Elim. (102) (48) (196) 812 (271) 804 500 Airbus
Slide 35: Quarterly EBIT Adjusted Breakdown (Cumulative)
QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE) 35 IN € MILLION Q1 H1 9m FY 2017 2016 2017 2016 2017 2016 2017 2016 Commercial Aircraft 281 406 954 1,269 1,545 1,836 2,811 Helicopters (2) 33 93 144 165 200 350 Defence and Space (1) 63 107 248 322 357 436 1,002 HQ / Elim. (102) (48) (196) (56) (271) (
Slide 36: 9M 2017 IFRS vs. APM Cash Flow Reconciliation
9M 2017 IFRS VS. APM CASH FLOW RECONCILIATION 36 IN € BILLION 9m 2017 IN € BILLION 9m 2017 Cash provided by (used for) operating activities (2.6) Cash provided by (used for) operating activities (2.6) t/o Reimbursement from / contribution to plan assets (0.2) Cash provided by (used for) investing ac
Slide 37: 2016 Quarterly EBIT Before One-off to EBIT Adjusted Reconciliation
2016 QUARTERLY EBIT* BEFORE ONE-OFF TO EBIT ADJUSTED RECONCILIATION 37 IN € MILLION Q1 H1 EBIT* EBIT* Exceptionals EBIT Adjusted Exceptionals EBIT Adjusted before one-off before one-off Commercial Aircraft 407 (1) 406 1,270 (1) 1,269 Helicopters 33 0 33 144 0 144 Defence and Space 109 (2) 107 325 (3
Slide 38: Glossary on Alternative Performance Measures (APM)
GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM) 38 The following Presentation also contains certain “non-GAAP financial measures”, i.e. financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measure calculated and presented in a