Global Investor Forum Finance. Harald Wilhelm, CFO EADS London, 11th/12th December 2013

Transcription

1 - Finance Harald Wilhelm, CFO EADS 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. Page 2

3 Value Framework: Key Metrics Capital allocation Healthy Balance Sheet Cash generation Natural hedging & hedge book Operational de-risking Operating profit Operational improvement Consistent Top Line growth Driving total returns Page 3

4 Consistent Growth in Order Book Order Book by Activity Platforms Order Book by Region in bn A320, neo, A330, A350, A380 Eurofighter, A400M, MRTT, 5% 2% 15% 33% 642 bn t/o Defence 48 bn 19% Ariane 5, 5 ME, Ariane 6, 26% EC130, EC175, NH90, as of end-sept. 2013, in value Commercial Defence Asia Pacific Europe North America Middle East Latin America Other countries Consistent backlog growth driven by competitive platforms and geographic diversity Page 4

5 Consistent Growth in Revenues Revenues Growth Revenues by Division Revenues by Region in bn Guidance % 11% 65% 15% 6% 2% 7% 40 bn t/o Defence 7.7 bn 33% 37% Pro forma as per H disclosure as of 9m 2013 Commercial Defence Airbus Airbus Defence & Space Asia Pacific Europe Middle East Latin America Airbus Helicopters North America Other countries While strongest contributors are commercial products, defence revenues remain resilient Page 5

6 Operational Improvement: Drives Financial Performance Programme Management Quality Sites Supply Chain Lean Cost competitiveness : Headcount Legal Structure Integration: HR, Finance Airbus Defense & Space Helicopters HQ Improvement programmes on-going across all Divisions and HQ delivering progress and improving competitiveness Page 6

7 Operating Profit: Steady Progress to 10% ROS* by 2015 EBIT* before one off excluding A350 Revenues & EBIT* pre R&D and with open 1.30 * pre-goodwill impairment and exceptionals Group fully focused on delivering target ~10% ROS* by 2015 (before A350 dilution and with EUR/USD 1.30) Page 7

8 Operating Profit target 2015 EBIT* before one off including A350 Revenues & EBIT* pre R&D and with remaining open 1.35 * pre-goodwill impairment and exceptionals 2015 ROS* before one off targeted between 7% and 8% including the A350 dilution Page 8

9 A350 EBIT Before One-Offs Pre R&D A350 EBIT* pre R&D before One Offs Ramp - UP RC Buy / Make PRICE Launch Price A350 Launch Price A350 XWB Serial Price A350 XWB * pre-goodwill impairment and exceptionals Page 9

10 A350 EBIT Before One-Offs Pre R&D A350 EBIT* pre R&D before One Offs Ramp - UP Ramp-Up Preparation RC Buy / Make Commercial Deliveries PRICE Launch Price A350 Launch Price A350 XWB Serial Price A350 XWB * pre-goodwill impairment and exceptionals Page 10

11 A350 EBIT Before One-Offs Pre R&D A350 EBIT* pre R&D before One Offs Ramp - UP Ramp-Up Preparation Commercial Deliveries RC Buy / Make PRICE Launch Price A350 Launch Price A350 XWB Serial Price A350 XWB LMC * pre-goodwill impairment and exceptionals Page 11

12 Operational de-risking COMMERCIAL BID / SALES CONTROLLING STEP 1 STEP 2 STEP 3 STEP 4 Pipeline reviews Devision review CoCom Risk Cat. A.B.C POST CoCom Consistent deployment of de-risking activities across the Group Page 12

13 Natural Hedging and Hedge Book in bn Cost base External Sourcing Turnover per Currency GBP Cost of Sales Personnel expenses USD Euro * as of end-sept Active foreign exchange exposure management Page 13

14 Cash Generation - Outlook on some Key Drivers > 2017 SA / LR A ~ ~ ~ A A400M Other Cash Drivers ~/+ ~/ Target Free Cash Flow above break even in 2014 and 2015, then progression to increasing FCF conversion Page 14

15 Healthy Balance Sheet Strong Credit Rating Strong Liquidity Position in bn FCF Guidance -1.5 SBB & Dividend -2.4 STANDARD & POOR S MOODY S (unsolicited) Strong balance sheet allows investment in our business whilst improving cash returns to shareholders Page 15

16 Dividend Policy EADS will target a sustainable growth in dividend within a payout ratio of 30% - 40% Page 16

17 Conclusion: Platform for Sustainable Value Growth Growth driven by commercial momentum, competitive platforms and geographic diversity Re-organisation of Airbus DS launched to enhance sustainable performance and transformation programmes to improve competitiveness, on-going across the Group Re-affirm our 10% ROS before one off target pre-a350 dilution for a 7% to 8% ROS, before one off target including A350 Target cash generation in 2014/15, and then improved Free Cash Flow conversion Total shareholder return enhanced by visibility on targeted dividend progression Page 17