DGAP-Adhoc: Airbus Group N.V.: Airbus Group Achieves Record Revenues, EBIT* And Order Backlog In 2014


Airbus Group N.V.  / Key word(s): Final Results

27.02.2015 07:00

Dissemination of an Ad hoc announcement, transmitted by DGAP - a service of
EQS Group AG.
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Ad-hoc release, 27 February 2015

Airbus Group Achieves Record Revenues, EBIT* And Order Backlog In 2014 

  - Revenues increase five percent to EUR 60.7 billion

  - Reported EBIT* up 54 percent to EUR 4.0 billion with a 6.7% return on
    sales

  - Earnings per share up 61 percent to EUR 2.99, despite A400M charge

  - Free cash flow positive at EUR 2.0 billion, including EUR 0.9 billion
    proceeds from divestments

  - Proposed 2014 dividend EUR 1.20 per share, up 60% from EUR 0.75 in 2013

  - Airbus Group targets slight increase in EBIT* before one-off in 2015

  - Production rate adjustments: A320 family production up to 50 aircraft a
    month from 
Q1 2017; A330 production down to six aircraft per month
    from Q1 2016

  - Airbus order backlog 6,386 aircraft, providing solid platform for
    growth

Airbus Group (stock exchange symbol: AIR) reported strong 2014 results,
reflecting an improved operational performance with record commercial
aircraft deliveries, revenues and order backlog.

"We achieved a significant improvement in profitability and cash generation
in 2014 thanks to
a record order book and strong operational performance in most areas," said
Tom Enders, Airbus Group Chief Executive Officer. "We delivered more
commercial aircraft than ever before, including the first A350, and our net
orders were, once again, more than twice the number
of deliveries. Due to strong demand for single aisle aircraft we have
decided to increase production of our A320 family to 50 aircraft per month
from 2017 onwards. At the same time,
we have decided to temporarily reduce A330 production to six aircraft per
month in 2016.
Most importantly, we confirm the A380 break-even for 2015. We are focused
on tackling
our various operational challenges, including the A350 and A400M ramp-up
and costs, first A320neo deliveries, boosting helicopter sales, and
continuing the reshaping of our defence and space portfolio."

Group order intake(2)  in 2014 was EUR 166.4 billion (FY 2013: EUR 216.4
billion(1)), with the order book(2) worth a record EUR 857.5 billion at
year-end (year-end 2013: EUR 680.6 billion(1)). Airbus received
1,456 net commercial aircraft orders (FY 2013: 1,503 net orders), with a
net book-to-bill ratio above 2 and a backlog of 6,386 aircraft at year-end.
Net order intake at Airbus Helicopters was 369 units (FY 2013: 422 units),
including a backlog adjustment of 33 NH90s. Airbus Defence and Space's
order intake by value rose four percent, driven by continuing strong
momentum in space systems and good order flow in light and medium (L&M)
military aircraft.

Group revenues increased five percent to a record EUR 60.7 billion (FY
2013: EUR 57.6 billion(1)).
Commercial Aircraft revenues rose seven percent, driven by the overall
increase in deliveries
to a record 629 aircraft (FY 2013: 626 deliveries) and a more favourable
delivery mix including
30 A380s compared to 25 in 2013. In the fourth quarter, the first A350 XWB
was delivered
to Qatar Airways as planned and IAS 11 accounting standards were
implemented for limited launch customer contracts. Revenues at Helicopters
rose four percent, mainly driven
by government programmes including the ramp-up in NH90 activity. Helicopter
deliveries totalled 471 units (FY 2013: 497 units), including the
successful entry-into-service (EIS) of the EC175 in the fourth quarter
following the EIS of the EC145 T2 and EC135 T3 earlier in the year. Defence
and Space's revenues were broadly stable, with eight A400M deliveries in
total to
four nations and six Ariane 5 launches during the year.

Group EBIT* before one-off(4) - 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 4,066 million (FY 2013: EUR 3,537 million(1)). Commercial Aircraft
EBIT* before one-off increased to EUR 2,529 million (FY 2013: EUR 2,214
million(1)), reflecting a solid underlying performance. Helicopters' EBIT*
before one-off rose slightly to EUR 413 million (FY 2013: EUR 397 million),
despite higher research and development (R&D) expenses and a less
favourable revenue mix. Defence and Space's EBIT* before one-off was stable
at EUR 920 million (FY 2013: EUR 911 million(1)).
Group self-financed R&D expenses totalled EUR 3,391 million (FY 2013: EUR
3,118 million(1)).
Group EBIT* before one-off return on sales improved to 6.7 percent (FY
2013: 6.1 percent(1)).

Reported EBIT*(4) increased 54 percent to EUR 4,040 million (FY 2013: EUR
2,624 million(1)) with a low level of net one-offs amounting to EUR -26
million in total, composed of:
  - A fourth quarter net charge of EUR 551 million due to delays on the
    A400M programme 
as outlined in the nine month 2014 results. The
    sequence of progressive military enhancements and associated deliveries
    are under negotiation with customers to reflect the revised programme
    baseline and delivery schedule. In the last quarter of 2014, management
    reviewed the programme evolution mostly driven by military
    functionality challenges and industrial ramp-up together with
    associated mitigation actions. Significant management actions have been
    launched to secure future deliveries and the programme continues to be
    closely monitored;

  - A positive EUR 142 million contribution from the dollar pre-delivery
    payment mismatch 
and balance sheet revaluation;

  - A total of EUR 383 million in capital gains linked to the divestment of
    eight percent 
of the company's Dassault Aviation participation and the
    sale of the stake in Patria.

In January 2015, Airbus Group and Safran completed the initial phase of the
integration of their respective space launcher businesses. The Airbus
Safran Launchers Joint Venture has now entered its operational phase and
will focus primarily on the development of the new Ariane 6 launcher and
the continuation of production of Ariane 5 launchers. In the second phase,
all remaining activities and industrial assets of Airbus Group and Safran
dealing with civil space launchers and military launchers will be
integrated into the Joint Venture. Given the relative size
of the businesses to be contributed by Airbus Group and Safran
respectively, an economic compensation of EUR 800 million will be made by
Safran to Airbus Group in order to attain
the 50/50 shareholding in the Joint Venture in the second phase. Key terms
and conditions
of the implementation of the second phase, including usual adjustments
notably regarding working capital positions and the nature and timing of
the compensation, are still to be finalized between
the parties. The implied multiple for the activities contributed to the JV
by Airbus Defence and Space is 12x 2014 EBITA(7).

Net income(5) rose to EUR 2,343 million (FY 2013: EUR 1,473 million(1)),
while earnings per share (EPS) increased to EUR 2.99 (FY 2013: EUR
1.86(1)). Net income and EPS increased strongly despite
the finance result of EUR -778 million (FY 2013: EUR -610 million(1)),
which included a negative foreign exchange valuation of EUR 341 million
linked to the weakening of the euro in the fourth quarter.
Free cash flow before mergers and acquisitions improved significantly to
EUR 1,109 million
(FY 2013: EUR -811 million(1)), reflecting a strong fourth quarter
performance and efforts to improve cash flow across the Group during the
year and proceeds from divestments further boosted
free cash flow to EUR 2,002 million (FY 2013: EUR -827 million). The net
cash position at the end
of 2014 was EUR 9.1 billion (year-end 2013: EUR 8.5 billion(1)) after the
2013 dividend payment of
EUR 587 million and EUR 462 million pension plan contribution. The gross
cash position on December 31, 2014 was EUR 16.4 billion.

Based on EPS of EUR 2.99, Airbus Group's Board of Directors will propose to
the Annual General Meeting the payment of a 2014 dividend of EUR 1.20 per
share on 3 June 2015 (FY 2013:
EUR 0.75 per share). The record date shall be 2 June 2015. "To reflect the
good financial progress
we made last year and the outlook for 2015, we are proposing a payment in
line with the top end
of our stated dividend policy. At EUR 1.20 per share, it implies growth of
60 percent compared to 2013
and a payout ratio of 40 percent," said Harald Wilhelm, Airbus Group Chief
Financial Officer.

Outlook 
As the basis for its 2015 guidance, Airbus Group expects the world economy
and air traffic to grow in line with prevailing independent forecasts and
assumes no major disruptions.
Airbus deliveries should be slightly higher than in 2014, and the
commercial aircraft order book is again expected to grow.
In 2015, before mergers & acquisitions (M&A), Airbus Group expects an
increase in revenues and targets a slight increase in EBIT* before one-off.
Based on its current view of the industrial ramp-up, Airbus Group targets
breakeven free cash flow in 2015 before M&A.
Airbus Group targets its EPS and dividend per share to increase further in
2015.

* 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 former 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 2014, the Group - comprising Airbus, Airbus Defence and Space and Airbus
Helicopters - generated revenues of EUR 60.7 billion and employed a
workforce of around 138,600.

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

Airbus Group - Full-Year (FY) Results 2014
 (Amounts in euro)

<pre>

Airbus Group                              FY 2014    FY 2013 (1)    Change
Revenues, in millions                     60,713     57,567         +5%
thereof defence, in millions              10,993     10,791         +2%
EBITDA (3), in millions                   6,147      4,497          +37%
EBIT before one-offs (4), in millions     4,066      3,537          +15%
EBIT (4), in millions                     4,040      2,624          +54%
Research & Development expenses,          3,391      3,118          +9%
in millions
Net Income (5), in millions               2,343      1,473          +59%
Earnings Per Share (EPS) (5)              2.99       1.86           +61%
Free Cash Flow (FCF), in millions         2,002      -827           -
Free Cash Flow                            1,109      -811           -
before M&A, in millions
Free Cash Flow                            1,894      -508           -
before Customer Financing, in millions
Dividend per share (6)                    1.20       0.75           +60%
Order Intake (2), in millions             166,430    216,418        -23%


Airbus Group                              31 Dec     31 Dec         Change
                                          2014       2013 (1)
Order Book (2), in millions               857,519    680,560        +26%
thereof defence, in millions              42,240     42,630         -1%
Net Cash position, in millions            9,092      8,454          +8%
Employees                                 138,622    138,404        0%


</pre>

<pre>

by Division                        Revenues                        EBIT (4)
(Amounts in millions of Euro)     FY     FY      Change FY    FY     
Change
                                  2014   2013           2014  2013
                                         (1)                  (1)
Commercial Aircraft               42,280 39,494  +7%    2,671 1,593   +68%
Helicopters                       6,524  6,297   +4%    413   397     +4%
Defence and Space                 13,025 13,121  -1%    409   659     -38%
Headquarters / Eliminations /     -1,116 -1,345  -      547   -25     -
Others
Total                             60,713 57,567  +5%    4,040 2,624   +54%


</pre>

<pre>

by Division                        Order Intake (2)          Order Book (2)
(Amounts in millions of Euro)      FY     FY      Cha-  31 Dec 31 Dec  Cha-
                                   2014   2013    nge   2014   2013    nge
                                          (1)                  (1)
Commercial Aircraft                150,0  199,261 -25%  803,6  625,595 +28%
                                   85                   33
Helicopters                        5,469  5,775   -5%   12,227 12,420  -2%
Defence and Space                  12,225 11,808  +4%   43,075 43,208  0%
Headquarters / Eliminations /      -1,349 -426    -     -1,416 -663    -
Others
Total                              166,4  216,418 -23%  857,5  680,560 +26%
                                   30                   19


</pre>

 

Airbus Group - Fourth Quarter Results (Q4) 2014
Airbus Group                             Q4 2014    Q4 2013 (1)    Change
Revenues, in millions                    20,216     18,620         +9%
EBIT before one-offs (4), in millions    1,476      1,217          +21%
EBIT (4), in millions                    1,457      493            +196%
Net Income (5), in millions              944        270            +250%
Earnings Per Share (EPS) (5)             1.21       0.34           +256%
<pre>

by Division                        Revenues                        EBIT (4)
(Amounts in millions of Euro)       Q4    Q4      Cha-  Q4    Q4     
Change
                                    2014  2013    nge   2014  2013
                                          (1)                 (1)
Commercial Aircraft                 13,4  12,166  +11%  898   70      +1,18
                                    60                                3%
Helicopters                         2,264 2,165   +5%   172   180     -4%
Defence and Space                   4,828 4,739   +2%   39    303     -87%
Headquarters / Eliminations /       -336  -450    -     348   -60     -
Others
Total                               20,2  18,620  +9%   1,457 493     +196%
                                    16


</pre>

Q4 2014 revenues increased nine percent compared to the fourth quarter of
2013, reflecting higher volume and favourable foreign exchange effects.

Q4 EBIT* increased sharply to EUR 1,457 million, driven by the improved
Commercial Aircraft performance. Furthermore, in Q4 2013 a negative charge
of EUR 434 million was recorded on
the A350 XWB programme while Q4 2014 included a positive one-off linked to
foreign exchange of EUR 149 million.

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, taxes, depreciation, amortisation and
    exceptionals.

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

 5) 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.

 6) To be proposed to the Annual General Meeting 2015.

 7) Earnings before interest, taxes and amortisation of intangibles.


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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:       Regulated Market in Frankfurt (Prime Standard); Regulated
              Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
              Munich, Stuttgart
 
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