2015 ROADSHOW PRESENTATION 2 H1 2015 HIGHLIGHTS H1 2015 Financial - - PowerPoint PPT Presentation

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2015 ROADSHOW PRESENTATION 2 H1 2015 HIGHLIGHTS H1 2015 Financial - - PowerPoint PPT Presentation

Oct 16, 2023 272 likes •429 views

1 H1 RESULTS 2015 ROADSHOW PRESENTATION 2 H1 2015 HIGHLIGHTS H1 2015 Financial performance confirms 2015 Guidance Revenues: 29 bn, +5% vs. H1 2014 EBIT* before one off: 1.9 bn, +6% vs. H1 2014 EBIT*: 2.2 bn, +21% vs. H1

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SLIDE 1

1

H1 RESULTS

2015

ROADSHOW PRESENTATION

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SLIDE 2

H1 2015 HIGHLIGHTS

2

H1 2015 Financial performance confirms 2015 Guidance

  • Revenues: € 29 bn, +5% vs. H1 2014
  • EBIT* before one off: € 1.9 bn, +6% vs. H1 2014
  • EBIT*: € 2.2 bn, +21% vs. H1 2014
  • EPS: € 1.94, +34% vs. H1 2014
  • FCF: € 0.5 bn, up € + 2.8 bn vs. H1 2014
  • Healthy commercial aircraft market confirmed: order book 6,430 a/c, > 10 years of deliveries
  • Operational progress delivering results
  • Execution of strategy to focus on core + divestments
  • Long-term EPS/DPS growth story supported by near-term disposals and divestments
* Pre-goodwill impairment and exceptionals
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SLIDE 3
  • 4%
  • 2%

0% 2% 4% 6% 8% J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N

  • 4%
  • 2%

0% 2% 4% 6% 8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 World real GDP World passenger traffic (ASKs)

US $ Geopolitics Gas & Oil Price Global Economy Airline Profitability

$

POSITIVE MARKET ENVIRONMENT

3

Overall favourable macro environment for Airbus Group Resilient passenger traffic growth

Macroeconomic Environment

World real GDP and passenger traffic

% (year-over-year)

2008 2009 2010 2011 2012 2013 2014

+6.1%

August 2015 Passenger Traffic

2015

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SLIDE 4

Airbus Group Order Intake* by Segment (by value)

29% 21% 20% 13% 7% 10%

H1 2015 COMMERCIAL ENVIRONMENT

4

* Commercial Order Intake and Order Book based on list prices; ** Including a positive revaluation adjustment linked to the USD evolution

€ 927 bn**

t/o Defence: € 39 bn

Airbus Group Order Book* by Region (by value)

Airbus Airbus Helicopters Airbus D&S Europe Asia Pacific Other countries North America Latin America Middle-East

86% 4% 10%

€ 54 bn

t/o Defence: € 4 bn
  • AIRBUS: 348 net orders, including 57 A330 family

Le Bourget – 124 firm orders, 297 commitments including 31 A350, 20 A330-300R China A330s, Indigo 250 A320neo

  • AIRBUS HELICOPTERS: 135 net orders including 29 H175 and 41 Lakota LUH

7 H175 for Hong Kong

  • AIRBUS DEFENCE & SPACE: Strong order intake across the Division, particularly Space and Military a/c

MRTT: South Korea…, Ariane 6 development contract from ESA

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SLIDE 5

AIRBUS BACKLOG AND DELIVERIES

5

Over 10 years production in backlog

in units

6,430 aircraft in backlog

as of end June 2015

Solid, diversified backlog, Single Aisle overbooking policy Proactive risk management tools in place

North America 10% Latin America 7% Europe & CIS 15% Middle East 7% Africa 1% Asia Pacific 26% Lessors 22%

Backlog by Region* Deliveries vs. Backlog

Airbus deliveries

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

1,500 2,533 3,715 3,552 4,682

6,386

320 378 434 453 483 498 510 534 588 626

629

Airbus backlog # of a/c Net Book-to-Bill

0.7 2.3 2.8 1.8 3.0 1.6 0.6 1.1 2.7 2.4 1.4

5x 10x

* Based on units, 11.5% undisclosed customers not shown in backlog

Deliveries to Lessors, EU and NA increasing over next years

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SLIDE 6

12.7 23.2 22.6 19.7 14.9 12.8

CURRENCY HEDGE POLICY

6

Mark-to-market value = € -9.2 bn

Closing rate @ 1.12 € vs. $

25.5*

Forward Sales as of June 2015 Forward Sales as of Dec. 2014 Average hedge rates

2015 2016 2017 2018 2019

and beyond

€ vs $

1.35

( 1.35 in Dec. 14 )

1.32

( 1.33 in Dec. 14 )

1.31

( 1.32 in Dec. 14 )

1.27

( 1.33 in Dec. 14 )

1.28

( 1.36 in Dec. 14 )

£ vs $

1.59 1.58 1.59 1.58 1.59

  • in US$ bn
  • In H1 2015, new hedge contracts of $ 17.6 bn** were added at an average rate of € 1 = $ 1.20
  • In H1 2015, hedges of $ 12.8 bn** matured at an average hedge rate of € 1 = $ 1.35
  • Hedge portfolio** 30 June 2015 at $ 93.1 bn (vs. $ 88.3 bn in Dec. 2014)
  • Average rates of € 1 = $ 1.30 (vs. € 1 = $ 1.33 in Dec. 2014) and £ 1 = $ 1.58 (vs. £ 1 = $ 1.59 in Dec. 2014)
Approximately 60% of Airbus Group’s US$ revenues are naturally hedged by US$ procurement. Graph shows US$ Forward Sales * Total hedge maturing in 2015; ** Total hedge amount contains $/€ and $/£ designated hedges
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SLIDE 7
  • 4.1
  • 0.8
  • 2.3

1.1

  • 1.0
Breakeven

H1'13 FY'13 H1'14 FY'14 H1'15 FY'15 Guidance

26 58 27 61 29 62

H1'13 FY'13 H1'14 FY'14 H1'15 FY'15 Guidance

1.61 3.57 1.77 4.07 1.88

H1'13 FY'13 H1'14 FY'14 H1'15 FY'15 Guidance

6.3% 6.5% 6.5% 6.2% 6.7%

* Pre-goodwill impairment and exceptionals; ** H1 2015 Average number of shares: 785,672,234 compared to 782,012,866 in H1 2014; Capitalised R&D: € 76 m in H1 2015 and € 129 m in H1 2014 in € bn

H1 2015 FINANCIAL PERFORMANCE

in € bn in € bn / RoS (%) in €

7

FCF before M&A Revenues EBIT* before one-off EPS** before one-off

1.22 2.82 1.38 3.36 1.47 3.50

H1'13 FY'13 H1'14 FY'14 H1'15 FY'15 Guidance

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SLIDE 8

1.38 1.45 1.47 1.94

EPS* before one-off EPS Reported H1 2014 H1 2015

1.77 1.84 1.88 2.23

EBIT* before one-off EBIT* Reported H1 2014 H1 2015

H1 2015 PROFITABILITY

EPS performance EBIT* performance

in € bn in €

8

* Pre-goodwill impairment and exceptionals
  • H1 2015 EBIT* reported +21%
  • H1 2015 one-offs resulting from:
  • € - 290 m A400M provision
  • € - 145 m $ PDP mismatch / BS Revaluation
  • € + 748 m Sale of Dassault Aviation shares
  • € + 33 m Defence & Space Portfolio
  • € + 346 m Net one-offs
  • H1 2015 Net Income of € 1.5 bn, +34%
  • H1 2015 EPS of € 1.94, +34%
  • H1 2015 Financial one-offs € - 100 m

reflect negative foreign exchange revaluation

  • H1 2015 tax rate 18%
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SLIDE 9

9.1 8.4

+1.6

  • 1.2

+2.0

  • 2.1
  • 1.0

Net Cash position

  • Dec. 2014

Gross Cash Flow from Operations Change in Working Capital Cash used for investing activities before M&A * M&A ** Dividends, Pensions & Others *** Net Cash position

  • Jun. 2015

H1 2015 CASH EVOLUTION

9

in € bn

Free Cash Flow* before M&A

  • 1.0
* Thereof Capex of € - 1.0 bn; ** M&A transactions include acquisitions and disposals of subsidiaries and businesses; *** thereof Dividend of € - 0.9 bn
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SLIDE 10

STRONG PRODUCT PORTFOLIO

10

  • Product portfolio positioned to

capture growth

A320 production rate increase to 50/month with overbooking A320neo delivery stream expected to begin in 2015 A330 production rate to 6/month on the way to transition to A330neo end 2017 A350 in the industrial ramp-up phase A380 reaching breakeven in 2015

  • Strong business model and new

products to drive our future

H160 Flight tests under way X6 Concept phase launched H145M EASA certification

  • Product renewal + international

partnerships for future growth in new markets

  • Global leader in Space, Military

Aircraft, Missiles and related Systems & Services

  • Products address current and

future customer challenges and respond to market opportunities

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SLIDE 11

DRIVING COMPETITIVENESS AND INNOVATION

11

D&S

Restructuring and reshaping while implementing strategy to focus on core

Helicopters

Transformation on-track, addressing customer value proposition

Airbus

Boost competitiveness through operational efficiency and continuous improvement

Group

Transversal initiatives: Quality, “one-roof” for key regions Digital Strategy, Innovation Centre, Corporate Venture Capital, Dassault divestment

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SLIDE 12

GUIDANCE 2015

12

  • In 2015, before M&A, Airbus Group expects an increase in revenues and targets a slight increase in

EBIT before one-off

  • As the basis for its 2015 guidance, Airbus Group expects the world economy and air traffic to grow in

line with prevailing independent forecasts and assumes no major disruptions

  • Airbus deliveries should be slightly higher than in 2014, and the commercial aircraft order book is

expected to grow

  • Based on our current view of the industrial ramp-up, Airbus Group targets breakeven Free Cash Flow

in 2015 before M&A

  • Airbus Group targets its EPS and DPS to increase further in 2015
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SLIDE 13

BUILDING BLOCKS OF AIRBUS GROUP SHAREHOLDER VALUE

13

1.46

2012

1.86

2013

2.99

2014

DPS: sustainable growth within a 30-40% pay-out ratio SBB: AGM approved, decision based on operational / strategic progress

End of decade

Future EPS

*

A350 Turning Profitable A320 Rates / NEO Premium Airbus R&D FX upside > 2017 Lower A330 volume Dassault / AD&S Divestments

* Before FX one-offs, EPS is illustrative

2014 EPS € 2.99 + 61% 2014 Dividend € 1.20 +60%

✓ ✓

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SLIDE 14

CONCLUSION

14

  • Financial performance on track to deliver 2015 guidance
  • Healthy commercial aircraft market confirmed
  • Operational progress delivering results
  • Long-term EPS/DPS growth story supported by near-term disposals and divestments