Airbus Group SE / Key word(s): Half Year Results 31.07.2015 06:59 Dissemination of an Ad hoc announcement, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ad-hoc release, 31 July 2015 Airbus Group Reports Solid Half-Year (H1) 2015 Results - Revenues EUR 28.9 billion, EBIT* before one-off EUR 1.88 billion: Both rise 6% - Earnings per share up 34 percent to EUR 1.94 - Free cash flow EUR 549 million, including sale of Dassault Aviation shares - A400M deliveries resumed, charge of EUR 290 million included - H1 financial performance confirms 2015 guidance Airbus Group (stock exchange symbol: AIR) reported solid half-year results supported by an improved operational performance and confirmed its 2015 guidance. "The half-year underlying results reflect our continued focus on programme execution and operational efficiency," said Tom Enders, Airbus Group Chief Executive Officer. "Revenues, profitability and cash generation all improved, and the overall financial performance means we are on track to deliver our 2015 guidance. We continue to see healthy commercial momentum across the portfolio as shown by the major contracts announced at June's Paris Air Show. We are focused on operational priorities, including A350 and A400M ramp-up, cost control and deliveries plus the A320neo transition, as we strive to further enhance profits and cash." Group order intake(1) in the first six months of 2015 increased sharply to EUR 53.9 billion (H1 2014: EUR 27.7 billion), with the order book(1) value rising to EUR 927 billion as of 30 June (year-end 2014: EUR 858 billion) taking into account a positive revaluation linked to the strengthening of the US dollar. Airbus received 348 net commercial aircraft orders (H1 2014: 290 net orders), including 57 A330 Family aircraft. Demonstrating the continued strength of the commercial aircraft market, 421 firm orders and commitments were announced during the Paris Air Show. Airbus Helicopters received 135 net orders (H1 2014: 148 units), including 29 H175s. Order intake by value rose 40 percent at Airbus Defence and Space, with strong momentum seen across business lines including additional Earth observation satellites and A330 MRTTs. In June, Defence and Space was selected by OneWeb to design and manufacture an initial 900 satellites. Group revenues rose six percent to EUR 28.9 billion (H1 2014: EUR 27.2 billion), reflecting the strong delivery mix at Commercial Aircraft and strengthening US dollar. Commercial Aircraft's revenues rose nine percent with 304 commercial airplanes delivered (H1 2014: 303 units), including 4 A350 XWBs and 13 A380s. Helicopters' revenues increased five percent, driven by government programmes and services activities which mitigated lower deliveries of 152 units (H1 2014: 200 units). Defence and Space's revenues were stable despite the deconsolidation of launcher revenues with the creation of the Airbus Safran Launchers JV's first phase. Group EBIT* before one-off(3) - 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 - rose six percent to EUR 1,883 million (H1 2014: EUR 1,769 million) with improvements in all Divisions. Commercial Aircraft's EBIT* before one-off rose to EUR 1,533 million (H1 2014: EUR 1,287 million), driven by operational improvement and some favourable cost phasing including research and development (R&D) expenses. Helicopters' EBIT* before one-off rose eight percent to EUR 162 million (H1 2014: EUR 150 million), with lower volumes and a less favourable mix mitigated by higher services activity and the Division's transformation plan. Defence and Space's EBIT* before one-off increased to EUR 267 million (H1 2014: EUR 223 million), reflecting good programme execution and progress in its transformation plan. Group self-financed R&D expenses were EUR 1,506 million (H1 2014: EUR 1,564 million) while the Group EBIT* before one-off return on sales was 6.5 percent (H1 2014: 6.5 percent). The industrial ramp-up of the A350 XWB programme is gaining traction, with Vietnam Airlines becoming the second operator in June. Development of the A320neo is progressing with a CFM-powered aircraft making its first flight in May and flight tests of Pratt & Whitney-engined aircraft resuming at the end of July. Despite some flight test interruptions, the A320neo delivery stream is still expected to commence in 2015. The A380 programme is on track for breakeven by the year-end. Helicopters' product renewal strategy is progressing with flight testing for the new H160 underway and the X6 concept phase now launched. At Defence and Space, four A400Ms were delivered in the first half of 2015. Reported EBIT*(3) increased 21 percent to EUR 2,229 million (H1 2014: EUR 1,839 million), with net one-offs totalling a positive EUR 346 million and comprising: - A EUR 290 million additional net charge related to the A400M programme. Following the accident on 9 May 2015, an analysis of the programme's current status was conducted. Airbus Group has worked with all its partners to resume flights and deliveries. However, the accident caused setbacks on qualifying enhanced military capability and the schedule of planned deliveries. The accident stopped certain flight test activity for a number of weeks and caused bottlenecks in the production process. Industrial efficiency remains a challenge during the ramp-up phase and furthermore, the escalation formulae in the contract versus costs has gone significantly negative due to lower inflation in the eurozone(5). Airbus Group is working with its customers to agree the new schedule of military capability enhancement and deliveries as well as reviewing the escalation formulae. - A EUR 145 million net charge related to the dollar pre-delivery payment mismatch and balance sheet revaluation driven by the weaker euro versus the dollar. The second quarter included a negative impact of EUR 36 million linked to the revaluation of the A400M provision. - A EUR 748 million net gain from the sale of an 18.75% stake in Dassault Aviation(6),. - A net gain of EUR 33 million mainly linked to the creation of the Airbus Safran Launchers JV's first phase. Net income(4) increased 34 percent to EUR 1,524 million (H1 2014: EUR 1,135 million) while earnings per share (EPS) rose the same percentage to EUR 1.94 (H1 2014: EUR 1.45), driven by the improved operational performance. Both included the Dassault Aviation capital gain and A400M charge. The finance result was EUR -344 million (H1 2014: EUR -252 million) and included one-offs totalling EUR -100 million mainly from negative foreign exchange revaluation of financial instruments. Free cash flow before mergers and acquisitions improved significantly to EUR -1,025 million (H1 2014: EUR -2,270 million), reflecting the delivery performance and tight cash control while proceeds of around EUR 1.7 billion from the sale of Dassault Aviation shares boosted total free cash flow to EUR 549 million (H1 2014: EUR -2,244 million). The net cash position at the end of June 2015 was EUR 8.4 billion (year-end 2014: EUR 9.1 billion) after a 2014 dividend payment of EUR 945 million (2013: EUR 587 million) with a gross cash position of EUR 16.8 billion (year-end 2014: EUR 16.4 billion). 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 and Airbus Combination, 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 - Half-Year (H1) Results 2015 (Amounts in euro) <pre> Airbus Group H1 2015 H1 2014 Change Revenues, in millions 28,893 27,200 +6% thereof defence, in millions 4,869 4,614 +6% EBITDA (2), in millions 3,295 2,773 +19% EBIT before one-offs (3), in millions 1,883 1,769 +6% EBIT (3), in millions 2,229 1,839 +21% Research & Development expenses, 1,506 1,564 -4% in millions Net Income (4), in millions 1,524 1,135 +34% Earnings Per Share (EPS) (4) 1.94 1.45 +34% Free Cash Flow (FCF), in millions 549 - 2,244 - Free Cash Flow - 1,025 - 2,270 - before M&A, in millions Free Cash Flow 612 - 2,112 - before Customer Financing, in millions Order Intake (1), in millions 53,919 27,708 +95% Airbus Group 30 June 31 Dec Change 2015 2014 Order Book (1), in millions 926,978 857,519 +8% thereof defence, in millions 38,757 42,240 -8% Net Cash position, in millions 8,436 9,092 -7% Employees 137,217 138,622 -1% </pre> <pre> by Division Revenues EBIT (3) (Amounts in millions of Euro) H1 H1 Change H1 H1 Change 2015 2014 2015 2014 Commercial Aircraft 21,081 19,429 +9% 1,424 1,357 +5% Helicopters 2,950 2,801 +5% 162 150 +8% Defence and Space 5,531 5,516 0% -26 223 - Headquarters / Eliminations -669 -546 - 669 109 - Total 28,893 27,200 +6% 2,229 1,839 +21% </pre> <pre> by Division Order Intake (1) Order Book (1) (Amounts in millions of Euro) H1 H1 Change 30 June 31 Dec Change 2015 2014 2015 2014 Commercial Aircraft 46,334 22,880 +103% 875,018 803,633 +9% Helicopters 2,726 2,183 +25% 12,004 12,227 -2% Defence and Space 5,371 3,831 +40% 41,683 43,075 -3% Headquarters / Eliminations - 512 -1,186 - - 1,727 -1,416 - Total 53,919 27,708 +95% 926,978 857,519 +8% </pre> Airbus Group - Second Quarter Results (Q2) 2015 <pre> Airbus Group Q2 2015 Q2 2014 Change Revenues, in millions 16,815 14,552 +16% EBIT before one-offs (3), in millions 1,232 1,069 +15% EBIT (3), in millions 988 1,120 -12% Net Income (4), in millions 732 696 +5% Earnings Per Share (EPS) (4) 0.93 0.89 +4% </pre> <pre> by Division Revenues EBIT (3) (Amounts in millions of Euro) Q2 Q2 Change Q2 Q2 Change 2015 2014 2015 2014 Commercial Aircraft 12,516 10,492 +19% 1,005 811 +24% Helicopters 1,665 1,619 +3% 110 92 +20% Defence and Space 2,928 2,773 +6% - 159 138 - Headquarters / -294 -332 - 32 79 - Eliminations Total 16,815 14,552 +16% 988 1,120 -12% </pre> Q2 2015 revenues rose 16 percent compared to the second quarter of 2014, driven by a higher volume of commercial aircraft and positive foreign exchange effects. Q2 2015 EBIT* before one-off rose 15 percent to EUR 1,232 million, reflecting operational improvement in all Divisions as well as some favourable cost phasing including R&D. Q2 2015 EBIT* declined 12 percent to EUR 988 million and included negative net one-offs mainly reflecting the additional net charge of EUR 290 million on the A400M programme. Footnotes: 1) Contributions from commercial aircraft activities to Order Intake and Order Book based on list prices. 2) Earnings before interest, taxes, depreciation, amortisation and exceptionals. 3) Earnings before interest and taxes, pre goodwill impairment and exceptionals. 4) Airbus Group continues to use the term Net Income. It is identical to Profit for the period attributable to equity owners of the parent as defined by IFRS Rules. 5) Long-term contracts generally contain a contract clause which escalates the price of the contract in line with a formula reflecting an approximate escalation of the input costs - labour and materials. Various indexes are used depending on the mix of input costs. 6) The remaining Dassault Aviation participation is now recorded as an asset held for sale and the result of the period of Dassault Aviation will no longer contribute to the Headquarters earnings line, except for dividends to be received and the capital gain from future sales of Dassault Aviation shares. 7) 8) 31.07.2015 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Airbus Group SE 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 End of Announcement DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Airbus Group SE: Airbus Group Reports Solid Half-Year (H1) 2015 Results
| Source: EQS Group AG