| --- | --- | --- | --- | |-------|-------|-----------------------------------|-----------------------------------------------------| | | | | | | | | 13 February 2020 | | | | | Guillaume FAURY Dominik ASAM \| | \| Chief Executive Officer Chief Financial Officer | | | | | | AIRBUS 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 ide ...

Financial Data and Key Metrics Changes - Revenue for the nine months grew to €46.2 billion, up 14% year-on-year, driven by higher deliveries and favorable mix [25] - EBIT adjusted increased to €4.1 billion, up about 50% year-on-year, primarily due to A320 ramp-up and A350 progress [25][26] - Free cash flow before M&A and customer financing was -€4.9 billion, reflecting working capital build to support future deliveries [27] - Net income was €2.2 billion with earnings per share of €2.18 [33] Business Line Data and Key Metrics Changes - Commercial Aircraft: Delivered 571 aircraft in nine months, an increase of 14% year-on-year, with a backlog of 7,133 aircraft [44][15] - Helicopters: Booked 173 net orders in nine months, with stable revenues supported by growth in services [20][49] - Defence and Space: Order intake of €6.1 billion in nine months, with significant contracts in space and military aircraft [21][50] Market Data and Key Metrics Changes - The commercial aircraft market remains solid, with RPKs growing at a lower pace and load factors at record levels [7][8] - Demand for single-aisle long-distance operations is strong, particularly for the A321XLR [9] - The backlog for A320 family aircraft exceeds 5,700, with full bookings through 2024 [18] Company Strategy and Development Direction - The company is focused on ramping up A320neo production to 63 per month by 2021 while managing increased complexity [10][54] - Efforts are underway to improve delivery flow and efficiency, with a target of around 860 commercial aircraft deliveries in 2019 [55] - The company is preparing for future production systems with higher volumes and complexity, emphasizing digitalization and innovation [26][58] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over U.S. tariffs and the potential impact of a no-deal Brexit, emphasizing the need for a negotiated solution [13][14] - The company remains confident in meeting its EBIT adjusted target for the year, despite challenges [56] - Future cash flow guidance is optimistic, with expectations for better performance in 2020 compared to 2019 [99] Other Important Information - The company is ramping up investments in innovation and digitalization, which will accelerate in Q4 [26] - The effective tax rate on net income is 32%, influenced by charges related to defense export license suspensions [33] - The company is adapting its hedging activities to align with delivery profiles, with a hedge portfolio standing at $101 billion [36] Q&A Session Summary Question: Free cash flow guidance for Q4 - Management indicated that the guidance implies an increase to €8 billion in Q4, driven by higher payments per aircraft and a back-end loaded Defence and Space profile [62][63] Question: Delivery cut implications for 2020 - Management clarified that the delivery cut is aimed at ensuring a better ramp-up towards 63 per month in 2021, with a more balanced delivery profile expected in 2020 [69][71] Question: ACF delivery challenges - Management explained that the ACF's complexity arises from new cabin designs and systems, making it more challenging than anticipated [106] Question: Export risks for A400M - Management noted that securing export orders is crucial for cash flow, with timelines extending over the next decade [90][92] Question: Impact of U.S. tariffs - Management stated that tariffs are import duties to be paid by customers, and they are working to ensure customers bear this cost moving forward [101][102]

Financial Performance - Airbus reported revenues of €46.2 billion for 9M 2019, compared to €40.4 billion in 9M 2018[10, 13] - The company's EBIT Adjusted was €4.1 billion with a 9.0% margin in 9M 2019, compared to €2.7 billion with a 6.8% margin in 9M 2018[15] - EPS Adjusted reached €3.75 in 9M 2019, up from €2.31 in 9M 2018[17] - Free Cash Flow (FCF) before M&A and Customer Financing was negative €4.9 billion in 9M 2019, compared to negative €4.2 billion in 9M 2018[19] Commercial Aircraft - Airbus recorded net order intake of 127 aircraft in 9M 2019, with a total order book of 7,133 aircraft[8] - Commercial aircraft deliveries increased to 571 units in 9M 2019, a 13.5% increase from 503 units in 9M 2018[41] - Airbus division revenues increased by 16.7% to €35.572 billion in 9M 2019[41] Helicopters and Defence & Space - Helicopters division reported net order intake of 173 units in 9M 2019, with a total order book of 681 units[8] - Defence and Space division recorded net order intake of €6.064 billion in 9M 2019[8] - Defence and Space division revenues increased by 9.3% to €7.706 billion in 9M 2019[52] Guidance and Currency Hedging - Airbus updated its 2019 delivery target to around 860 commercial aircraft and expects FCF before M&A and Customer Financing of approximately €3 billion[59] - The company maintains its expected increase in EBIT Adjusted of approximately +15% compared to 2018[59] - As of September 2019, the hedge portfolio was $101.0 billion, at an average rate of $1.22[33]

Airbus SE (OTCPK:EADSY) Q2 2019 Earnings Conference Call July 31, 2019 2:15 AM ET Company Participants Thorsten Fischer - Investor Relations Guillaume Faury - Chief Executive Officer Dominik Asam - Chief Financial Officer Conference Call Participants Doug Harned - Bernstein Ben Heelan - Bank of America Merrill Lynch Celine Fornaro - UBS David Perry - JPMorgan Tristan Sanson - Exane BNP Paribas Olivier Brochet - Credit Suisse Andrew Gollan - Berenberg Harry Breach - MainFirst Robert Stallard - Vertical Resea ...