DGAP-Adhoc: Airbus Group N.V.: Airbus Group Shows Continued Progress In Half-Year (H1) 2014 Results

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| Source: EQS Group AG
Airbus Group N.V.  / Key word(s): Half Year Results

30.07.2014 06:59

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Ad-hoc release, 30 July 2014

Airbus Group Shows Continued Progress In Half-Year (H1) 2014 Results 

  - Revenues increase six percent to EUR 27.2 billion

  - EBIT* before one-off up 10 percent to EUR 1.77 billion

  - Net income rises 50 percent to EUR 1.14 billion

  - 2014 guidance confirmed with Airbus net book-to-bill above 1

  - 2015 return on sales guidance pre A330neo unchanged

 
Amsterdam, 30 July 2014 - Airbus Group (stock exchange symbol: AIR)
reported solid results for the first half of 2014, reflecting operational
improvement and the continued focus on programme execution.

Demand for the Group's products remains strong as shown at July's
Farnborough Air Show, where Airbus announced 496 aircraft orders and
commitments confirming the health of the commercial aircraft market. The
A330neo was endorsed by the market with 121 commitments announced at the
show. Group order intake(2)  in the first half was EUR 27.7 billion (H1
2013: EUR 95.6 billion(1)), with the order book(2) worth EUR 677.4 billion
on 30 June, 2014 (year-end 2013: EUR 680.6 billion(1)). Airbus received 290
net commercial aircraft orders (H1 2013: 722 net orders(1)). Net order
intake at Airbus Helicopters was 148 units (H1 2013: 167 units) while in
July agreements were signed to supply 123 rotorcraft to China. Airbus
Defence and Space's order intake by value was stable, with continued
momentum in space activities and 17 light and medium transport aircraft
orders received.

"The first half of 2014 was all about keeping our main development and
series programmes on track and implementing our restructuring plans in
defence and space," said Airbus Group CEO Tom Enders. "This is shown in the
solid improvement in revenues and profitability.
We saw good commercial order momentum at Farnborough and have shown our
commitment to ensure the Group's long-term competitiveness through the
A330neo launch and the joint venture in space launchers."

Group revenues increased six percent to EUR 27.2 billion (H1 2013: EUR 25.7
billion(1)), driven by Airbus Commercial Aircraft and Airbus Helicopters
with flat revenues at Airbus Defence
and Space. Airbus' revenues rose seven percent, reflecting the increase in
deliveries to
303 aircraft (H1 2013: 295 deliveries(1)) and a more favourable mix,
including five additional A380s compared to a year earlier. Airbus
Helicopters' revenues rose eight percent as deliveries increased to 200
units (H1 2013: 190 units) including the NH90 ramp up. At Airbus Defence
and Space, satellite launches in the second quarter included the Earth
observation satellite Spot 7.

Group EBIT* before one-off - an indicator capturing the underlying business
margin
by excluding material non-recurring charges or profits caused by movements
in provisions related to programmes and restructurings or foreign exchange
impacts - improved to
EUR 1,769 million (H1 2013: EUR 1,614 million(1)). It included a capital
gain of EUR 60 million from the sale of the Paris Headquarters building.
EBIT* before one-off for Airbus rose to EUR 1,287 million (H1 2013: EUR
1,231 million(1)), reflecting operational improvement but was weighed down
by A350 XWB support costs and a more front-loaded research and development
(R&D) expense profile compared to 2013. EBIT* before one-off at Airbus
Helicopters rose to EUR 150 million (H1 2013: EUR 128 million), reflecting
the Super Puma recovery and services activities. Airbus Defence and Space's
EBIT* before one-off was stable at EUR 223 million (H1 2013: EUR 216
million(1)). The Group EBIT* before one-off return on sales was 6.5 percent
(H1 2013: 6.3 percent).

The A350 XWB programme is on track for certification in the third quarter
of 2014 and
entry-into-service by year-end. All five development aircraft are now
flying with more than
2,250 flight test hours accumulated. The first A320neo is being prepared
for the first flight in September with the programme on track for
entry-into-service in the fourth quarter of 2015. Entry-into-service for
the A330neo is scheduled for the final quarter of 2017.
At Airbus Helicopters, the EC175 programme is progressing towards
entry-into-service in the fourth quarter of 2014. Airbus Defence and
Space's restructuring plan is progressing and on track. After the delivery
of Turkey's first aircraft in April and France's third in late July, the
A400M programme enters in progressive enhancement with military capability
with some delays incurred. The sequence of progressive enhancements is
under final negotiation with customers. Risks related to the cost envelope
and military functionality are being closely monitored. Airbus Group and
Safran agreed in June to create a 50:50 joint venture to improve
competitiveness in the space launcher segment. As part of a portfolio
review, Airbus Group continues to pursue disposal options for its
investment in Dassault Aviation.

Reported EBIT*(3) increased 24 percent to EUR 1,839 million (H1 2013: EUR
1,478 million(1))
and included a EUR 70 million positive contribution from the dollar
pre-delivery payment mismatch and balance sheet revaluation. The finance
result was EUR -252 million (H1 2013: EUR -417 million(1)) while net
income(4) increased to EUR 1,135 million (H1 2013: EUR 758 million(1)), or
earnings per share (EPS) of EUR 1.45 (EPS H1 2013: EUR 0.94(1)). Net income
and EPS also reflected favourable foreign exchange effects.  Group
self-financed R&D expenses increased to EUR 1,564 million (H1 2013: EUR
1,399 million(1)). Free cash flow before acquisitions improved
significantly to EUR -2,270 million (H1 2013: EUR -4,060 million(1)),
reflecting tight cash control and investment in production and development
programmes. The net cash position on June 30, 2014 was EUR 5.4 billion
(year-end 2013: EUR 8.5 billion(1)) after the 2013 dividend payment of EUR
587 million and EUR 336 million pension plan contribution. The gross cash
position was EUR 13.5 billion.

Outlook 
As the basis for its 2014 guidance, Airbus Group expects the world economy
and air traffic to grow in line with prevailing independent forecasts and
assumes no major disruptions. In 2014,
Airbus deliveries should be about the same level as in 2013, including the
first A350 XWB delivery. Net commercial aircraft orders should be above the
level of deliveries. Assuming an exchange rate of EUR 1 = $ 1.35, Airbus
Group revenues should be stable compared to 2013(5).
Using EBIT* before one-off, Airbus Group expects moderate return on sales
growth in 2014(5).
The 2015 return on sales target of 7-8 percent(6) is unchanged pre A330neo
development, which is assessed to have a net impact of around -70 basis
points. The EBIT* and EPS* performance
of Airbus Group will depend on the Group's ability to limit "one-off"
charges. Going forward,
from today's point of view, the one-offs should be limited to potential
charges on the A350 XWB programme and foreign exchange effects linked to
the pre-delivery payment mismatch and balance sheet revaluation. The A350
XWB programme remains challenging. Any change to the schedule and cost
assumptions could lead to an increasingly higher impact on provisions.
Airbus Group is targeting breakeven free cash flow before acquisitions in
2014.

* Airbus Group uses EBIT pre-goodwill impairment and exceptionals as a key
indicator of its economic performance. The term "exceptionals" refers to
such items as depreciation expenses of fair value adjustments relating to
the EADS merger, the Airbus Combination and the formation of MBDA, as well
as impairment charges thereon.

Airbus Group

Airbus Group is a global leader in aeronautics, space and related services.
In 2013, the Group - comprising Airbus, Airbus Defence and Space and Airbus
Helicopters - generated revenues of EUR 57.6 billion (restated) and
employed a workforce of around 139,000 (restated).

Contacts for the media:
Martin Agüera  +49 (0) 175 227 4369  
Rod Stone   +33 (0) 6 30 521 993

Note to editors: You can listen to the Half-Year 2014 Results Analyst
Conference Call with CEO Tom Enders and CFO Harald Wilhelm today at 10:30
a.m. CET via the Airbus Group website: www.airbusgroup.com/H12014. A
recording of the call will be made available in due course.

Airbus Group - Half-Year (H1) Results 2014
(Amounts in euro)

<pre>

Airbus Group                                    H1 2014 H1 2013 (1) Change
Revenues, in millions                           27,200  25,670      +6%
thereof defence, in millions                    4,614   4,476       +3%
EBITDA (7), in millions                         2,773   2,335       +19%
EBIT (3), in millions                           1,839   1,478       +24%
Research & Development expenses,                1,564   1,399       +12%
in millions
Net Income (4), in millions                     1,135   758         +50%
Earnings Per Share (EPS) (4)                    1.45    0.94        +54%
Free Cash Flow (FCF), in millions               -2,244  -4,073      -
Free Cash Flow before Acquisitions, in millions -2,270  -4,060      -
Free Cash Flow                                  -2,112  -4,020      -
before Customer Financing, in millions
Order Intake (2), in millions                   27,708  95,561      -71%


Airbus Group                                    30 June 31 Dec      Change
                                                2014    2013 (1)
Order Book (2), in millions                     677,447 680,560     0%
thereof defence, in millions                    41,223  42,630      -3%
Net Cash position, in millions                  5,361   8,454       -37%
Employees                                       138,133 138,404     0%

by Division                        Revenues                        EBIT (3)

(Amounts in millions of Euro) H1     H1       Change H1    H1       Change
                              2014   2013 (1)        2014  2013 (1)
Airbus                        19,429 18,102   +7%    1,357 1,095    +24%
Airbus Helicopters            2,801  2,584    +8%    150   128      +17%
Airbus Defence and Space      5,516  5,564    -1%    223   216      +3%
Headquarters /                -760   -785     -      121   37       -
Eliminations
Other Businesses              214    205      +4%    -12   2        -
Total                         27,200 25,670   +6%    1,839 1,478    +24%

by Division                 Order Intake (2)                 Order Book (2)

(Amounts in millions of Euro) H1     H1       Change 30 June 31 Dec  
Change
                              2014   2013 (1)        2014    2013 (1)
Airbus                        22,880 89,302   -74%   625,620 625,595  0%
Airbus Helicopters            2,183  2,448    -11%   11,802  12,420   -5%
Airbus Defence and Space      3,831  3,948    -3%    41,566  43,208   -4%
Headquarters /                -1,359 -284     -      -1,792  -1,017   -
Eliminations
Other Businesses              173    147      +18%   251     354      -29%
Total                         27,708 95,561   -71%   677,447 680,560  0%


</pre>

Airbus Group - Second Quarter Results (Q2) 2014

<pre>

Airbus Group                       Q2 2014       Q2 2013 (1)       Change
Revenues, in millions              14,552        13,576            +7%
EBIT (3), in millions              1,120         889               +26%
Net Income (4), in millions        696           531               +31%
Earnings Per Share (EPS) (4)       0.89          0.66              +35%

by Division                        Revenues                        EBIT (3)

(Amounts in millions of Euro) Q2     Q2       Change Q2    Q2       Change
                              2014   2013 (1)        2014  2013 (1)
Airbus                        10,492 9,343    +12%   811   632      +28%
Airbus Helicopters            1,619  1,546    +5%    92    108      -15%
Airbus Defence and Space      2,773  2,900    -4%    138   132      +5%
Headquarters /                -406   -340     -      89    11       -
Eliminations
Other Businesses              74     127      -42%   -10   6        -
Total                         14,552 13,576   +7%    1,120 889      +26%


</pre>

Q2 2014 revenues rose seven percent compared to the second quarter of 2013
driven by higher deliveries at Airbus.

Q2 EBIT* rose 26 percent to EUR 1,120 million, mainly driven by Airbus'
operational performance while positive one-offs were higher in the quarter
compared to the second quarter of 2013.

 Footnotes:

1) The 2013 figures have been restated to reflect the application of IFRS
10 and 11. Wherever necessary, Divisional figures are also restated to
reflect the new Group structure as of 1 January 2014.

2) Contributions from commercial aircraft activities to Order Intake and
Order Book based on list prices.

3) Earnings before interest and taxes, pre goodwill impairment and
exceptionals.

4) Airbus Group continues to use the term Net Income. It is identical with
Profit for the period attributable to equity owners of the parent as
defined by IFRS Rules.

5)  Compared to 2013 reported figures (pre IAS 11 restatements).

6) Return on sales for EBIT* before one-off, including A350 XWB dilution
with a EUR/$ exchange rate of 1.35.

7) Earnings before interest, taxes, depreciation, amortisation and
exceptionals.

 


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Language:     English
Company:      Airbus Group N.V.
              P.O. Box 32008
              2303 DA Leiden
              Netherlands
Phone:        00 800 00 02 2002
Fax:          +49 (0)89 607 - 26481
E-mail:       ir@eads.net
Internet:     www.eads.com
ISIN:         NL0000235190
WKN:          938914
Indices:      MDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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