Airbus SE - Investor Guide Value Drivers 2017 · 34,899 new deliveries between 2017-2036 ......

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Source: Airbus Defence and Space Global Market Forecast * IHS Markit Procurement and RDT&E Budgets (doesn’t include Personnel, Operations and Maintenance some of which may be addressable) Market Outlook The world’s passenger air traffic is set to grow at 4.4% per year between 2017 and 2036 supporting strong aircraft demand. 34,899 new deliveries between 2017-2036 Single-aisle: 71% of units, Wide-bodies: 54% of value Portfolio Highlights Investment Case Commercial Aircraft Source: Airbus Global Market Forecast Helicopters Defence and Space A world leading manufacturer of aircraft in the category of 100 seats and more Best-selling single-aisle A320 Family with New Engine Option (neo) entry into service 2016. Backlog of 6,141 aircraft (December 2017) Versatile and complementary wide-body A330 Family with neo version to be delivered in summer 2018. Backlog of 317 aircraft (December 2017) New generation A350 XWB: designed to reduce operating costs, fuel burn and CO2 emissions. Backlog of 712 aircraft (December 2017) The world´s largest commercial aircraft A380: in service with 13 operators. Backlog of 95 aircraft (December 2017) A global leader in the civil and military helicopter market Light and light twin engine – H130, H135 and H145 multi-purpose helicopter Medium-lift: H175, a new standard for offshore, VIP and public service transport and the all-new H160 Medium-heavy: Super Puma (H225/H215) full multi-purpose helicopter for military and civil missions Multi-mission NH90: Multi-role military helicopter for both tactical transport and naval applications Tiger combat helicopter: Air-to-air and fire support helicopter Airbus Corporate Helicopters (ACH): Dedicated Private and Business Aviation Helicopter Brand Leadership in civil and parapublic sector: 50% of global civil deliveries in 2017 Services visibility: large in-service fleet of approx. 12,000 helicopters worldwide Customer proximity: covering nearly 150 countries worldwide New product introduction: all-new H175 in 2014; H160 with three prototypes now in flight-testing ahead of certification An ambitious innovation roadmap to lead the change in future Vertical Take-Off and Landing systems (CityAirbus, VSR700, RACER) Transformation program Wave 2 launched to increase digitalization of our products, services and operations Europe’s #1 defence and space company Military Aircraft – Develops, manufactures and supports a large family of aircraft including combat, mission, transport and tanker aircraft. Key products: Eurofighter Typhoon, A400M, A330 MRTT, C295. Space Systems – Satellites, orbital systems, space equipment; deep-space exploration and space transportation capabilities (via ArianeGroup). CIS – Satellite communications, large system integration projects for security and defence, satellite-based intelligence, cyber security and digital applications. UAS – Solutions for military & commercial applications. Military UAS (Eurodrone, Harfang, Zephyr), Operational Services and Airbus Aerial. Comprehensive portfolio with leading position in European home markets and strong export potential Clear growth strategy based on strengthening core products and expanding services business with a focus on digitalization (“smarter products – more services – more digital”) Growth opportunities driven by increasing defence spending and dynamic evolution of space market Favourable political context with increasing Franco-German and Europe-wide defence and space cooperation Global Defence Procurement in 2017 ca. €370bn with forecast growth of 2.7% p.a. out to 2021. Governmental Space Procurement in 2017 ca. €36bn with forecast growth of 2.4% p.a. out to 2021 Evolving security threats and big data require increasing data analytics and cyber protection. Demand for autonomy and Unmanned Systems is driving the UAS market and potential for drones and related services Passenger aircraft (≥ 100 seats) | Jet freight aircraft (>10 tonnes), Rounded figures to the nearest 10 20 Years New Deliveries of Passenger and Freighter Aircraft (units) Source: Airbus Helicopters 1 Value Drivers H145M H215 Tiger Airbus SE - Investor Guide Last update: 15.02.2018 2017 Eurofighter A330 MRTT Eurostar E3000(e) Zephyr Market leading products through continuous innovation (A320neo, A330neo, A350 XWB) Record backlog supporting ramp-up plans Revenue visibility: backlog represents ~9 years of production at current production rates Production rate increase on A320 family aircraft to 60 per month by mid-2019, on A350 XWB to 10 per month by end of 2018 Partnership with Bombardier on C Series bringing together two complementary product lines to rapidly extend our product offering into a fast growing market sector (subject to regulatory approvals) H160 Stock exchange symbol AIR; ISIN NL0000235190; Shares listed on Paris, Frankfurt and Spanish stock exchange Civil & Parapublic demand is 40% driven by replacements essentially coming from North America & Europe and 60% driven by growth, essentially from Emerging Markets (~80%) Military demand is mainly driven by budgetary and strategic considerations, as well as the need to replace ageing fleets % units 61% 39% Civil & Parapublic Military 22,000 14,000 5.000 10.000 15.000 20.000 25.000 20 Years Global Helicopter Delivery Forecast (units) Defence Procurement & RDTE Budgets* Top-down (2017 vs. 2021, € bn ) A330neo A380 A350 XWB A321neo

Transcript of Airbus SE - Investor Guide Value Drivers 2017 · 34,899 new deliveries between 2017-2036 ......

Page 1: Airbus SE - Investor Guide Value Drivers 2017 · 34,899 new deliveries between 2017-2036 ... Transformation program Wave 2 launched to increase digitalization of our products, services

Source: Airbus Defence and Space Global Market Forecast * IHS Markit Procurement and RDT&E Budgets (doesn’t include Personnel, Operations and Maintenance some of which may be addressable)

Market Outlook

The world’s passenger air traffic is set to grow at 4.4% per year between 2017 and 2036 supporting strong aircraft demand.

34,899 new deliveries between 2017-2036 Single-aisle: 71% of units, Wide-bodies: 54% of value

Portfolio Highlights Investment Case

Com

mer

cial

Airc

raft

Source: Airbus Global Market Forecast

Hel

icop

ters

D

efen

ce a

nd S

pace

A world leading manufacturer of aircraft in the category of 100 seats and more

Best-selling single-aisle – A320 Family with New Engine Option (neo) entry into service 2016. Backlog of 6,141 aircraft (December 2017)

Versatile and complementary wide-body A330 Family with neo version to be delivered in summer 2018. Backlog of 317 aircraft (December 2017)

New generation A350 XWB: designed to reduce operating costs, fuel burn and CO2 emissions. Backlog of 712 aircraft (December 2017)

The world´s largest commercial aircraft – A380: in service with 13 operators. Backlog of 95 aircraft (December 2017)

A global leader in the civil and military helicopter market

Light and light twin engine – H130, H135 and H145 multi-purpose helicopter Medium-lift: H175, a new standard for offshore, VIP and public service transport

and the all-new H160 Medium-heavy: Super Puma (H225/H215) full multi-purpose helicopter for military

and civil missions Multi-mission NH90: Multi-role military helicopter for both tactical transport and

naval applications Tiger combat helicopter: Air-to-air and fire support helicopter Airbus Corporate Helicopters (ACH): Dedicated Private and Business Aviation

Helicopter Brand

Leadership in civil and parapublic sector: 50% of global civil deliveries in 2017 Services visibility: large in-service fleet of approx. 12,000 helicopters worldwide Customer proximity: covering nearly 150 countries worldwide New product introduction: all-new H175 in 2014; H160 with three prototypes now

in flight-testing ahead of certification An ambitious innovation roadmap to lead the change in future Vertical Take-Off

and Landing systems (CityAirbus, VSR700, RACER) Transformation program Wave 2 launched to increase digitalization of our

products, services and operations

Europe’s #1 defence and space company Military Aircraft – Develops, manufactures and supports a large family of

aircraft including combat, mission, transport and tanker aircraft. Key products: Eurofighter Typhoon, A400M, A330 MRTT, C295.

Space Systems – Satellites, orbital systems, space equipment; deep-space exploration and space transportation capabilities (via ArianeGroup).

CIS – Satellite communications, large system integration projects for security and defence, satellite-based intelligence, cyber security and digital applications.

UAS – Solutions for military & commercial applications. Military UAS (Eurodrone, Harfang, Zephyr), Operational Services and Airbus Aerial.

Comprehensive portfolio with leading position in European home markets and strong export potential

Clear growth strategy based on strengthening core products and expanding services business with a focus on digitalization (“smarter products – more services – more digital”)

Growth opportunities driven by increasing defence spending and dynamic evolution of space market

Favourable political context with increasing Franco-German and Europe-wide defence and space cooperation

Global Defence Procurement in 2017 ca. €370bn with forecast growth of 2.7% p.a. out to 2021. Governmental Space Procurement in 2017 ca. €36bn with forecast growth of 2.4% p.a. out to 2021

Evolving security threats and big data require increasing data analytics and cyber protection. Demand for autonomy and Unmanned Systems is driving the UAS market and potential for drones and related services

Passenger aircraft (≥ 100 seats) | Jet freight aircraft (>10 tonnes), Rounded figures to the nearest 10

20 Years New Deliveries of Passenger and Freighter Aircraft (units)

Source: Airbus Helicopters

1

Value Drivers

H145M H215 Tiger

Airbus SE - Investor Guide

Last update: 15.02.2018

2017

Eurofighter A330 MRTT Eurostar E3000(e) Zephyr

Market leading products through continuous innovation (A320neo, A330neo, A350 XWB)

Record backlog supporting ramp-up plans Revenue visibility: backlog represents ~9 years of production at current

production rates Production rate increase on A320 family aircraft to 60 per month by mid-2019,

on A350 XWB to 10 per month by end of 2018 Partnership with Bombardier on C Series bringing together two complementary

product lines to rapidly extend our product offering into a fast growing market sector (subject to regulatory approvals)

H160

Stock exchange symbol AIR; ISIN NL0000235190; Shares listed on Paris, Frankfurt and Spanish stock exchange

Civil & Parapublic demand is 40% driven by replacements essentially coming from North America & Europe and 60% driven by growth, essentially from Emerging Markets (~80%)

Military demand is mainly driven by budgetary and strategic considerations, as well as the need to replace ageing fleets

% units 61% 39%

Civil & Parapublic Military

22,000

14,000

5.000

10.000

15.000

20.000

25.00020 Years Global Helicopter Delivery Forecast (units)

Defence Procurement & RDTE Budgets* Top-down (2017 vs. 2021, € bn )

A330neo A380 A350 XWB A321neo

Page 2: Airbus SE - Investor Guide Value Drivers 2017 · 34,899 new deliveries between 2017-2036 ... Transformation program Wave 2 launched to increase digitalization of our products, services

2015 2016 2017 Order Intake (€ bn) 159.0 134.5 157.7 Order Book (€ bn) 1,006 1,060 996.8 Revenues (€ bn) 64.5 66.6 66.8 EBIT adjusted (€ bn) 4.1 4.0 4.3 RoS based on EBIT adjusted 6.4% 5.9% 6.4% EBIT reported (€ bn) 4.1 2.3 3.4 Net Income (€ bn) 2.7 1.0 2.9 EPS reported (€) 3.43 1.29 3.71 Dividend (€) 1.30 1.35 1.50* Net Cash Position (€ bn) 10.0 11.1 13.4 FCF before M&A and Customer Financing (€ bn) 1.3 1.4 2.9

Head of Investor Relations and Financial Communication: Julie Kitcher [email protected] +33 5 82 05 53 01 Institutionals and analysts: Mohamed Denden [email protected] +33 5 82 05 30 53 Thorsten Fischer [email protected] +33 5 67 19 02 64 Alexandre Petovari [email protected] +65 98 63 70 63 Individual Investors: Nicolas Chretien [email protected] +33 800 01 2001

Further information on company.airbus.com/investors

A global leader in aeronautics, space and related services 85% civil revenues, 15% defence 3 business segments: Commercial Aircraft, Helicopters, Defence and Space Robust and diverse backlog Global footprint with European industrial roots

Financial Performance

Dividend policy: target of sustainable growth in dividend with a pay-out ratio of 30-40%

Dividend proposal of €1.50 per share, +11% vs. FY16, at upper end of policy

Group Key Financials Contact

Defence and Space

Major orders include 22 C-295 & 5 A330 MRTT and 2 telecom satellites

Major deliveries include 19 A400M, 1 A330 MRTT, 7 C-295, 8 Eurofighter Typhoon and 4 telecom satellites

Partner for defence ministries, institutional, and commercial space sector

Helicopters

Commercial Aircraft

2 Stock exchange symbol AIR; ISIN NL0000235190; Shares listed on Paris, Frankfurt and Spanish stock exchange

Airbus SE - Investor Guide

* Percentage breakdown excludes undisclosed and VIP orders

Last update: 15.02.2018

* Commercial Order Book based on list prices

* Communications, Intelligence & Security

2017

2017 Airbus Order Book* by Region (by value) 2017 External Revenue by Division

Click here for guidance. * Board proposal to be submitted to the AGM 2018. Subject to AGM approval

All 2017 KPIs overachieved, driven by strong underlying business performance

Cumulative perimeter changes vs. 2015 compensated: Revenues: ~ - € 3 bn; EBIT Adjusted: ~ - € 0.3 bn

2018 Guidance confirms EPS / FCF growth potential

Dividend per Share in € / Pay-out Ratio

A Global Leader

Focus on Shareholder Return

* Board proposal to be submitted to the AGM 2018, subject to AGM approval;

H160 NH90 Ariane 5 A400M

2015 2016 2017 Order Intake net (€ m) 14,440 15,393 8,893 Order Book (€ m) 42,861 41,499 37,407 Revenues (€ m) 13,080 11,854 10,804 R&D Expenses (€ m) 344 332 322 EBIT adjusted (€ m) 1,051 1,002 872 RoS (based on EBIT adj.) 8.0% 8.5% 8.1%

2017 External Revenues by Activity

2017 External Revenues by Business Lines 2017 Orders & Deliveries Key Financials

335 net helicopter orders 409 helicopter deliveries Global fleet of approx. 12,000

helicopters More than 3,000 operators in 154

countries

2015 2016 2017 Order Intake net (€ m) 6,168 6,057 6,544 Order Book (€ m) 11,769 11,269 11,201 Revenues (€ m) 6,786 6,652 6,450 R&D Expenses (€ m) 325 327 306 EBIT adjusted (€ m) 427 350 337 RoS (based on EBIT adj.) 6.3% 5.3% 5.2%

2017 External Revenues by Activity

2017 External Revenues by Sector 2017 Orders & Deliveries Key Financials

2015 2016 2017 Order Intake net (€ m) 139,062 114,938 143,361 Order Book (€ m) 952,450 1,010,200 950,354 Revenues (€ m) 45,854 49,237 50,958 R&D Expenses (€ m) 2,702 2,147 2,011 EBIT adjusted (€ m) 2,766 2,811 3,554 RoS (based on EBIT adj.) 6.0% 5.7% 7.0%

2017 External Revenues by Activity

2017 Deliveries by Programme (units)

1109 net aircraft orders 718 aircraft deliveries 399 customers worldwide 9,950 aircraft in operation Click here for Commercial Aircraft Orders & Deliveries.

2017 Orders & Deliveries Key Financials

2017 Airbus Order Book* by region (units)

Revenues in € bn

64.5

66.6 66.8

FY 2015 FY 2016 FY 2017

EBIT Adjusted in € bn / RoS (%)

4.11 3.96 4.25

6.4% 5.9% 6.4%

FY 2015 FY 2016 FY 2017

FCF before M&A and Customer Financing in € bn

1.3 1.4

2.9

FY 2015 FY 2016 FY 2017

A380 A350 XWB