Airbus. Tom Enders Airbus. 15 & 16 December 2011

Transcription

1 Airbus Tom Enders Airbus Global Investor Forum Global Investor Forum 15 & 16 December 2011

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, 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 it 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 19 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 Market Products Profitability

4 Market: Air travel remains a growth market 4 World annual traffic (RPKs - trillions) ICAO total traffic Airbus GMF year world annual traffic growth 4.8% Air traffic has doubled every 15 years Air traffic will double in the next 15 years

5 Market: GDP and passenger traffic development 5 World real GDP and passenger traffic (year-over-year) Nov. 11 Passenger traffic up 4.8% Source: IHS Global Insight (November 2011 data), OAG (ASKs data), Airbus

6 Market: 20-year demand for almost 27,900 new aircraft 6 20-year new deliveries of passenger and freight aircraft 19,170 single-aisle aircraft 6,910 twin-aisle aircraft 1,780 very large aircraft Market value of $3.5 trillion Passenger aircraft ( 100 seats) and Freighters (>10 tons)

7 Market: Global Market Forecast North America 22% Latin America 8% Europe 22% CIS 3% Middle East 7% Asia/ Pacific 34% Africa 4%

8 Market: 20-year passenger aircraft demand - 26,900 aircraft 8 Airbus Market Research & Forecasts

9 Market: Oil price prediction 9 Average annual WTI oil price (US$ per bbl) Average Annual Price History Forecast Per Barrel >$120 Oil price (Current US$) Sustaining price level will accelerate fleet renewal plans Source: Global Insight

10 Products: Over 11,000 aircraft sold 10 Sold Backlog A380 Family A350 Family A330 Family A320 Family ,432 aircraft sold to 334 customers Order backlog of almost 4,500 aircraft To end November 2011 Total sales include A300, A310 and A340 models

11 Products: Airbus order backlog distribution 11 North America 511 (12%) Lessors 855 (19%) Africa Latin 81 (2%) America 277 (6%) Corporate Jet, Private, Military 43 (1%) Europe CIS 500 (11%) 45 (1%) Order backlog of almost 4,500 aircraft worth $592 billion To end November 2011 Middle East 462 (11%) Asia/ Pacific 1657 (37%)

12 Products: A320neo worldwide success orders and commitments from 26 customers A320 Family is the leader in all market segments 1196 firm orders firm commitments To end November 2011

13 Products: Orders versus deliveries 13 The industry challenge: 40% volume ramp-up in 5 years

14 Products: Delivery comparison 14 Annual Deliveries (>100 seats, cumulative) Boeing/MDC deliveries Airbus deliveries

15 Products: Delivery comparison last decade 15 Annual Deliveries Largest Aircraft Manufacturer 9 out of last 11 years * 2011 data to end November

16 Products: Active order book management 16 Production Capacity Remark: Fictive example to demonstrate principle Year Overbooking gpolicy to enable production stability Tool to de-risk short term as well as long term items

17 Profitability: Restore competitiveness 17 Power 8 ( ) exceeded the initial objectives: Delivering 2.5bn savings Generating over 9bn in cash Power 8+: Continuous Improvement of performance, and profitability offsetting cost escalation & cost due to Company growth

18 Profitability: 2011 Key financial messages 18 Key financial messages on 2011 New order intake record expected - strong A320neo demand Likely new record on aircraft deliveries Profitability evolution on track Positive cash performance Programmes - key financial messages A350 XWB re-scheduling moderate impact due to de-risking strategy A380 industrial performance on track, including recurring cost reduction A400M inside its financial envelope SA/LR generating very strong margin and cash Good year on year price improvement A320neo premium price External environment No significant impact from banking crisis for the time being (sales financing/ supplier credits) Proactively attracting new finance sources and capital market financing Hedging: Benefiting from current $ strengthening to fill our hedge book; some deals

19 Profitability: 2012 Year of the profitability ramp-up profitability ramp-up main drivers: SA /LR ramp-up Price improvements Continuous improvement efforts off setting cost increase & escalation A380 profitability improvement Tight cost control Main 2012 risks: External: western economies/ crisis potentially impacting aircraft & supply chain financing Internal: A350 XWB milestone adherence

20 Profitability: Flight path to profitability target main drivers Production rate increase for all programs A380: from loss contribution to gross margin/ebit breakeven RoS A350 XWB: FAL start early 2012 & production ramp-up Negative gross margin of early A350 XWB deliveries (RoS dilution) Year on year pricing improvement Return on Sales (%) 1.35 Year a premium price Continue P8+ efforts offsetting cost increase & escalation Significant profitability ramp-up in 2012 and beyond

21 Thank you for your attention! 21