Global Investor Forum Market Perspectives / Strategy. Marwan Lahoud, Chief Strategy and Marketing Officer London, 11th/12th December 2013

Transcription

1 Global Investor Forum Market Perspectives / Strategy Marwan Lahoud, Chief Strategy and Marketing Officer London, 11th/12th December 2013

2 Safe Harbour Statement 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, ramp-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 developments 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 EADS 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 procurement budgets; 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. As a result, EADS 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 EADS Registration Document dated 3 April Any forward-looking statement contained in this presentation speaks as of the date of this presentation. EADS undertakes no obligation to publicly revise or update any forward-looking statements in light of new information, future events or otherwise.

3 Agenda 1. Our DNA 4 2. The world is evolving 7 3. The power of our portfolio Our strategy 18 Page 3

4 Page 4 Corporate Development

5 EADS STRICTLY CONFIDENTIAL ** Page 5 * At list prices ** France: 35%, Germany 35%, Spain 10%, UK 10% Corporate Development

6 Agenda 1. Our DNA 4 2. The world is evolving 7 3. The power of our portfolio Our strategy 18 Page 6

7 The economic world today The big economic clusters are still balanced Top 10 Top 10 countries Country GDP, 2012, US$ bn USA China 8221 Japan 5960 Germany 3430 France 2614 UK 2477 Brazil 2253 Russia 2030 Italy 2014 India 1842 World GDP: 72,2 US$ tn thereof: Top 10: 65% Top 20: 80% Page 7 Source: International Monetary Fund, Oct. 2013

8 Passenger Aircraft demand Asia-Pacific is the biggest market next to Europe and North America World demand for Large Commercial Aircraft North America Latin America Europe Middle East Africa CIS Asia-Pacific Region Number of LCA Asia-Pacific Europe 5827 North America 5521 Latin America 2279 Middle East 1999 CIS 1095 Africa 970 Total Passenger Aircraft: Page 8 Source: Airbus Global Market Forecast 2013

9 The top 20 countries in military budget in 2012 The US and Europe are the biggest markets, China not addressable Top Top 10 countries: Defence Budget 2012 CA US BZ UK NL ES FR GE IT IS KSAUAE IN RU CH SP JP RoK TW AU Country 2012, US$ bn USA 660 China 200 UK 62 Japan 58 Saudi Arabia 45 Germany 45 Russia 44 France 42 Brazil 40 India 39 World budget: 1636 US$ bn thereof: Top 10: 75% Top 20: 87% Page 9

10 The top 20 countries in military budget in 2020 Growth mainly in Asia and Middle East Top Top 10 countries: Defence Budget 2020 CA US BZ UK NL FR ES GE IT TU IS KSA IN RU CH SP JP RoK TW AU 2020 Country 2020, US$ bn* USA 564 China 370 Japan 63 UK 62 India 62 Saudi Arabia 57 Russia 54 Brazil 51 Germany 45 France 43 World budget: 1843 US$ bn thereof: Top 10: 74% Top 20: 86% * Arrows indicate change in budget Page 10

11 Agenda 1. Our DNA 4 2. The world is evolving 7 3. The power of our portfolio Our strategy 18 Page 11

12 EADS has built a strong position in the Aerospace, Defense and Space Industry Strong position in the markets we operate in: mostly Nr. 1 or Nr. 2 in the world Strong order backlog Strong Cash Position Top Credit Rating Unique capabilities in the Aerospace and Defence field Unique diversity to strengthen our global approach Page 12

13 Consistent Portfolio Contribution to Financial Targets Revenues Growth Revenues by Division Operating Profit Target 2015 in bn Guidance % 11% EBIT* before one off Including A350 Revenues & EBIT pre R&D and with remaining open % Pro forma as per H disclosure Airbus Commercial Defense Airbus Defense & Space Airbus Helicopters While strongest contributors are commercial products, defense remains resilient * pre-goodwill impairment and exceptionals 2015 ROS before one off targeted between 7% and 8% including the A350 dilution

14 Our portfolio provides value creation opportunities Business Dev. and Growth opportunities Strong Services component Global footprint Diversified portfolio Synergies Technology Talent development Sourcing synergies Privileged home country access Key provider of security critical capabilities Page 14

15 Synergies are materializing in dual-use of our products and technologies A330 FSTA Ariane 5 M51 EC725 EC225 Page 15

16 There are strong technological synergies Table of Contents Past and potentially future synergies between Defence/Space and Civilian In the last three decades For the future Stress analysis, materials, and flight control Digital computers Fly by wire 3D carbon technologies for structural equipment and high strain pieces for engines Digitalisation of air traffic control and network centric aircraft Increased autonomy and safety to deal with increased traffic Cyber Security New materials for structures, engines, and equipment Autonomous flight, Unmanned Aerial Vehicles, Optionally Piloted Vehicles Page 16

17 Agenda 1. Our DNA 4 2. The world is evolving 7 3. The power of our portfolio Our strategy 18 Page 17

18 Focus-Strategy on Commercial Leadership, Defence and Space Optimization and Value Creation 7 Strategic Priorities for the Group Strategic Implications Page 18 Strengthen market position and profitability while remaining a leader in commercial Aeronautics Preserve leading position in European Defence & Space and Government markets Exploit incremental innovation potential within our product programs, while preparing next-generation breakthroughs Focus on profitability, value creation, and market position - no need to chase growth at any cost; actively manage portfolio Adapt to a more global world and move closer to our international markets Focus services on and around our platforms Strengthen our value chain position We build a portfolio of strong divisions with cross-divisional processes and integrated functions (and shared services) where it delivers value We focus on our core business: Aeronautics (civil and military) and Space We leverage the strength of the Airbus commercial business to benefit the entire group We consolidate the bulk of our Defence and Space business into one division We keep our Helicopter business as a separate division due to its technical and market specificities Consequently, we rename and rebrand EADS to Airbus Group, a worldwide recognized brand We will use active portfolio management as a key lever to implement our strategy

19 The new organisation is structuring our businesses to be better positioned in the market Revenues: 36.9bn EBIT: 1.125m Employees: ~ Revenues 1 : 13.7bn EBIT 1 : 547m Employees 2 : ~ Revenues: 6.3bn EBIT: 311m Employees: ~ Offering Large commercial aircraft, Services Green aircraft for militarisation Defence, Security, Space products Related services Helicopters Related services Customers Airlines Airbus DS for militarization Mostly focusing on governmental and institutional Businesses as well as governmental / institutional customers Business model Commercial, B2B Programs funded through development phase where possible, B2G Strong commercial with customer funded defence programs, B2B, B2G Organization Logic Focus on the commercial aircraft business Joint customer base Synergies between previously dispersed activities Specific rotary wing technology Military versions derived from civil products Page 19 Note: 2012 figures 1: MBDA included at 37.5% 2: MBDA not included