Airbus · PDF filefuture performance and outlook. ... Drive overall Airbus competitiveness Align and standardise ways of working, whilst reducing complexity in order to generate

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Global Investor Forum 2012

Airbus

Fabrice BrégierChief Executive Officer Airbus

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Safe Harbour StatementDisclaimer

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 12th April 2012.

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.


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Content

Serial Programmes Execution

Development Programmes Execution

Improving Financial Performance

Strategic Factors

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Serial Civil Programmes (1/2)

A320 Family:

Backlog 3,462 aircraft (including 1,579 A320neo)

42 aircraft / month since October, an industry record despite supply chain issues

Cost optimisation programme launched last year will bring full benefits in 2014

Pricing policy securing margins

A330 Family:

Backlog 314 aircraft

9.5 aircraft / month since May, 10 / month next year

242t variant launched for EIS in 2015

Cost optimisation programme launched this year

3840 42

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A320 - Production Rate

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A330 - Production Rate

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Serial Civil Programmes (2/2)

A380 production is reaching a serial standard:

Wing rib feet issue is fixed :

Certifications of the repair solution and new wing line fit expected in January 2013Target maintained at 30 deliveries in 2012Temporary decrease in 2013 due to working parties reducing FAL capacityFull aircraft line fit deliveries from January 2014

RC reduced by 40% since 2009 and in line with rank 100 target

Further NRC and RC reduction launched to improve program financials

A380: Total backlog of 165 aircraft

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Succesful tankers programme:

28 A330-MRTT ordered from 4 customers (Australia, UK, UAE and Saudi Arabia)6 A330-MRTT deliveredOctober 2012, the French Ministry of Defence announced intention to order 14 A330-MRTTPotential market estimate of non-US long range tankers: more than 100 aircraft

Light & Medium aircraft continue to growdespite defense budget cuts:

32 orders so far in 201225 deliveries planned in 2012Total backlog of 37 aircraft

A330-MRTT & F18

CN 235

Tankers and Light & Medium Aircraft

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Content




Strategic Factors

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Hot Weather Campaign performed

MSN001 in final assembly Static test specimen completed

MSN003 Wing in Broughton

A350 XWB in the Making

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A350 XWB: Achievements

Test aircraft:Static test specimen FAL started in April, achieved in November and now in the test facilityWing drilling issues that delayed MSN1 wing assembly were fixed during this summerMSN1 start of FAL achieved in September: fuselage, wing and tail assembly completed without problem: good maturity of the assembly processFAL opening ceremony held on October 23rd

Next development aircraft progressing well in pre-FAL

Systems and equipments tests:Trent XWB engine 1st flight on A380 on Feb 18th : good performanceSpecific test benches for landing gears, fuel system and cabin now in serviceNose section power-on achieved in July on MSN1Full fuselage power-on achieved in November on MSN1“Aircraft zero” readiness for virtual flight achieved in SeptemberOverall high level of system maturity demonstrated by the tests

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A350 XWB: Way ForwardKey challenges ahead:

Route to First Flight mid 2013Virtual First Flight with “aircraft zero”Engine certificationStatic tests to enable First FlightGround tests on MSN1 & MSN3

Route to Entry Into Service in H2 2014:Cabin Virtual First Flight with cabin-fitted development aircraft (MSN2)5 test aircraft and related flight test campaignEarly Long Flights and Route Proving flights Complete aircraft certification testsWork closely with Launch Customers to prepare Entry Into Service

Prepare industrial ramp-upStrengthen suppliers capacity

Risk management as a priority:Robust alert and fix process applied in order to ensure maturity at each milestoneCommercial de-risking strategy

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Customers on board:Cathay Pacific and Qatar Airways have chosen the new version of -1000

Technology readiness ensured:Physical demonstrators have brought the proof of conceptsLower performance challenge due to -900 experience embedded in specifications

On track for 2017 EIS:Suppliers engaged and active participation in the development plateauDedicated organisation in place with over 2,000 peopleDetailed design on track to start early 2013

A350 XWB-1000: Risk Limited Derivative

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Route to EIS:Engine issues have been fixedRoute proving tests restarted Already 4,000 hours of Flight Tests EASA: Initial Type Certificate in April 2012Full Type Certificate planned in Q1 2013Military configuration for Initial Operational Clearance to be agreed with customers

The programme starts ramping-up:1st A400M delivery to France, scheduled Q2 2013 The 4 aircraft to be delivered in 2013 are in FALProgressive industrial ramp-up up to 2.5 aircraft per month in 2015

Export activities will start in 2013:

174 orders achieved before first flightPotentially ~400 extra sales in the next 30 years

A400M Patrol Before Take Off

A400M MSN007 in FAL

A400M: 4 Deliveries Planned in 2013

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A320neo: Secure Long Term Profitability

A320neo’s successful launch and Boeing’s “me too” strategy secure our SA long term leadership with very limited risks

Product development is well on track:

Concept phase successfully closed in October

Detailed design phase started and first parts manufactured

GTF engine validation programme started in November

Overall aircraft performance on track

Strong adherence to schedule

Mitigate risks during the transition period with Neo:

Changes limited to adaptation of engine options

Rigid maturity requirements in place (technical, industrial and customer support) to guarantee entry into service, ramp-up and reliability

Full transition over more than 2 years

Pratt & Whitney GTF test engine

Nose cowl

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Content




Strategic Factors

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Support Programmes Execution

Adapt Airbus organisation to its current challenges:

Maintain harmonised processes and ways of working but simplify and empower teams

Plants fully in charge to deliver the series programmes at high rates

Programmes fully in charge of A350 XWB, A400M and A320neo development teams

End-to-end accountability of the procurement team in charge to manage the supply chain (sourcing, contracting, ordering and developing suppliers)

Agility as a mind-set:

Focus teams on their priorities and give them the means to quickly react to unexpected disturbances

Speed-up the execution of decided improvements

Foster entrepreneurial spirit across management

Boost capacity to openly and quickly integrate innovation

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Secure Operational Margin Increase

Business transformation beyond Power 8+:

Leverage volume increase to further reduce costs on SA & LR

Drive overall Airbus competitiveness

Align and standardise ways of working, whilst reducing complexity in order to generate further savings

Improve supply chain performance

Boost services efficiency and growth

Pricing policy aligned to maximise margins

A380: secure break-even in 2015 even at 30 deliveries per year:

Further RC reduction aligned with break-even objective

Further NRC and fixed cost reduction programme has been launched and will deliver significant savings by 2015, while retaining capability to produce above rate 3

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Content




Strategic Factors

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Strategic Factors (1/2)

Our product policy drives the market:

Anticipate our customers’ needs and meet or exceed their expectations

Sharklets are bringing a significant improvement to the Single Aisle Family

A320neo is 18 months ahead of the competition

A330 more capable 242t variant guarantees significant programme life extension

A350-1000 will outdate the 777

Continuously improve our products by embedding the right technology

Keep ahead of the new competitors entering the market:

Keep investing in innovation and new technologies for the next generation of aircraft

Be ready to offer step changes in economics when the technology is available

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Strategic Factors (2/2)

Protect against economic downturns and adverse €/$ effect:

Worldwide balanced distribution of the backlog, focused on the fastest growing regions

Globalised supply chain and industrial footprint

Broaden the range of Airbus services portfolio:

Extend and industrialise operations and maintenance solutions proposed to the airlines

Complete the development of an end-to-end air traffic management offer

Deliver material management synergies and growth following Satair acquisition

Grow our training business

Provide high capacity, competitive and integrated turnkey solutions for upgrades & retrofit

Establish Flight Hour Services as a standard after a promising start (already 100 aircraft under contract)

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9m 2012 2015

Positive Trend to Reach Profitability Target

Key drivers for financial performance:Delivery ramp-up supported by a strong commercial momentumIncrease operating marginsEnsure A380 route to break-evenSecure A350 XWB EIS in 2014 and prepare the ramp-up

Airbus RoS 10%* in 2015

* @1.30 €/$ and before A350

Target2015

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Airbus · PDF filefuture performance and outlook. ... Drive overall Airbus competitiveness Align and standardise ways of working, whilst reducing complexity in order to generate