Airbus Group. Harald Wilhelm Airbus Group, CFO. London 10 December 2014

Transcription

1 1 Airbus Group Harald Wilhelm Airbus Group, CFO London 10 December 2014

2 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 statements include statements made about strategy, ram p-up and delivery schedules, introduction of new products and services and market expectations, as well as statements regarding future performance and outlook. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and develop ments to differ materially from those expressed or implied by these forward-looking statements. These factors include but are not limited to: Changes in general economic, political or market conditions, including the cyclical nature of some of Airbus Group s businesses; Significant disruptions in air travel (including as a result of terrorist attacks); Currency exchange rate fluctuations, in particular between the Euro and the U.S. dollar; The successful execution of internal performance plans, including cost reduction and productivity efforts; Product performance risks, as well as programme development and management risks; Customer, supplier and subcontractor performance or contract negotiations, including financing issues; Competition and consolidation in the aerospace and defence industry; Significant collective bargaining labour disputes; The outcome of political and legal processes including the availability of government financing for certain programmes and the size of defence and space Research and development costs in connection with new products; Legal, financial and governmental risks related to international transactions; Legal and investigatory proceedings and other economic, political and technological risks and uncertainties. procurement budgets; As a result, Airbus Group s actual results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For a discussion of factors that could cause future results to differ from such forward-looking statements, see Airbus Group Registration Document dated 4 Apri l Any forward-looking statement contained in this presentation speaks as of the date of this presentation. Airbus Group undertakes no obligation to publicly revise or update any forward-looking statements in light of new information, future events or otherwise.

3 Building Blocks of Airbus Group Shareholder Value 3 Driving Total Shareholder Returns Capital Allocation Financial Flexibility Cash Generation Operating Profit Operational Improvement Top Line Growth

4 Macro Environment 4 GDP Air Traffic Oil Interest Rates /$ rate Defence Budgets Macro environment overall favourable for Airbus Group

5 Consistent Topline Growth 5 7.7% CAGR 57.6bn Division 3-5 year Growth Trend 42.8bn Airbus Airbus HC Airbus DS Airbus DS Airbus HC Airbus CAGR = Compound Annual Growth Rate

6 Growing Airbus Backlog Supporting Topline Growth 6 9 years of production 6,036 9m 2014 Airbus Backlog by Units 3,421 3,488 4,437 ME 8% RoW 16% Asia Pacific 28% 5 years of production 1, , N. America 12% Europe 17% Lessors 19% 320 4% 5% 4% 5% 4%+1% 2% 0% 1% 2% 2% 2% YTD 2014 Airbus backlog # of a/c Airbus deliveries A320CEO-NEO swaps Cancellations as % total backlog

7 Transitioning Ceos to Neos 7 A320 Family A330 Family A330 rate 9 A320 rate 46 Ongoing Campaigns Beyond 2018 neo backlog* ceo backlog* Ready to adapt production rates on A320 and A330 to market demand * Backlog includes MoUs, options, and commitments

8 Product Life Cycle EBIT and Cash Flow Curves 8 ILLUSTRATIVE Incremental Upgrades Extend programme life Less investment Less risk New Development Programmes Upfront investment Learning curve brings down recurring costs EBIT Contribution Cashflow Contribution

9 Airbus Product Portfolio Positioned to Produce EBIT and Cash 9 ILLUSTRATIVE A320 A330 A350 A CEO A320 / A330 NEO A350 A380

10 PRICE RC Buy / Make Ramp - UP PROFITABILITY GLOBAL INVESTOR FORUM 2014 A350 Profitability 10 IAS 11 Impact Launch Price A350 Launch Price A350 XWB Serial Price A350 XWB Prof itability Prof itability + LMC 10 December 2014

11 Consistently Seeking Competitiveness Across the Group 11 Airbus Airbus DS Airbus Helicopters HQ Customer Satisfaction Programme Management Engineering Manufacturing / Operations Procurement Support Functions

12 Securing EBIT with Hedging Policy 12 Hedging Activity Increasing Hedging and Exposure Monthly FX Hedging YTD ,420 1,400 1,380 1,360 1,340 1,320 1,300 1,280 1,260 1,240 avg. spot rates EUR USD avg hedge rates EUR USD Monthly hedges As of 9m 2014 Protection and visibility gained with hedging, taking advantage of strengthening $

13 Profitability Performance % % %* 3.5 Moderate RoS Growth** Track record of profitability improvement 2014 guidance reaffirmed EBIT (bn ) and RoS (%) bef ore one off EBIT Outlook ** Compared to 2013 RoS before restatement at 6% * 2013 f igures are pro forma amended with IFRS 11 restatement

14 EBIT before one-off Drivers Year on Year Evolution 14 Driver 2015 vs vs vs A320/A330 A380 A350 Airbus DS Airbus HC R&D FX 2015 guidance reaffirmed long term trajectory confirmed Divestment Divestments support short-term

15 Inventory and PDP Evolution 15 Inventories Customer Advances 26-28bn 33-36bn Including A350 Programme A350 Evolution Governmental & Institutional Other Inventories Evolution Commercial (A330, A320, A380, Airbus DS, Airbus HC, etc) 2014E 2014E

16 Outlook on Key Cash Drivers 16 Driver A320/A A380 - ~ ~ ~ A A400M Airbus DS/HC & HQ Summary View ~ ~/ guidance reaffirmed long term trajectory confirmed Divestment Divestments support short-term

17 Financial Policy 17 Credit Rating Target A- or better Opportunities Keep flexibility to invest Robust Net Cash Level Hedging Ensure access to instruments Business Model Annual cashflow profile, resource intensive Business Risks Program execution and macro risks Shareholders Deliver on committed dividend policy

18 Conclusion: Driving Total Shareholder Returns 18 TOPLINE GROWTH EPS Growth COMPETITIVENESS AND PROFITABILITY DIVIDEND POLICY DPS Growth FINANCIAL POLICY