DGAP-Ad-hoc: Airbus SE / Key word(s): Annual Results
Airbus SE: Airbus reports Full-Year (FY) 2019 results, delivers on guidance
13-Feb-2020 / 06:29 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
*Ad-hoc release, 13 February 2020*
*Airbus reports Full-Year (FY) 2019 results, delivers on guidance*
*- *Record commercial aircraft deliveries
- Strong underlying financial performance, FY 2019 guidance achieved
- EUR -3.6 billion penalties recognised for agreements with authorities
- A400M EUR -1.2 billion charge; export assumptions revised
- Revenues EUR 70.5 billion, +11% YoY; EBIT Adjusted EUR 6.9 billion,
+19% YoY
- EBIT (reported) EUR 1.3 billion; loss per share (reported) EUR -1.75
- 2019 dividend proposal: EUR 1.80 per share, +9% versus 2018
- 2020 guidance to set the path for sustainable growth
Airbus SE (stock exchange symbol: AIR) reported Full-Year (FY) 2019
consolidated financial results and provided guidance for 2020.
"We achieved a great deal in 2019. We delivered a strong underlying
financial performance driven mainly by our commercial aircraft deliveries,"
said Airbus Chief Executive Officer Guillaume Faury. "The reported earnings
also reflect the final agreements with the authorities resolving the
compliance investigations and a charge related to revised export assumptions
for the A400M. The level of confidence in our ability to continue to deliver
sustainable growth going forward has led to a dividend proposal of EUR
1.80 per share. Our focus in 2020 will be on reinforcing our company
culture, improving operationally, and adjusting our cost structure to
strengthen the financial performance and prepare for the future."
Net commercial aircraft orders increased to 768 aircraft (2018: 747
aircraft), including 32 A350 XWBs, 89 A330s and 63 A220s. At the end of
2019, the order backlog reached 7,482 commercial aircraft. Airbus
Helicopters achieved a book-to-bill ratio by value above 1 in a difficult
market, recording 310 net orders in the year (2018: 381 units). This
included 25 helicopters from the Super Puma family, 23 NH90s and 10 H160s.
Airbus Defence and Space's order intake by value of EUR 8.5 billion was
supported by A400M services contracts and key contract wins in Space
Systems.
Consolidated *order intake* in 2019 increased to EUR 81.2 billion (2018:
EUR 55.5 billion) with the consolidated *order book* valued at EUR 471
billion on 31 December 2019 (end December 2018: EUR 460 billion).
Consolidated *revenues *increased to EUR 70.5 billion (2018: EUR 63.7
billion), mainly driven by the higher commercial aircraft deliveries and a
favourable mix at Airbus, and to a lesser extent the favourable exchange
rate development. A record 863 commercial aircraft were delivered (2018: 800
aircraft), comprising 48 A220s, 642 A320 Family, 53 A330s, 112 A350s and 8
A380s. Airbus Helicopters recorded stable revenues supported by growth in
services, which offset lower deliveries of 332 rotorcraft (2018: 356 units).
Revenues at Airbus Defence and Space were broadly stable compared to the
previous year.
Consolidated *EBIT Adjusted *- an alternativeperformance measure and key
indicator capturing the underlying business margin by excluding material
charges or profits caused by movements in provisions related to programmes,
restructurings or foreign exchange impacts as well as capital gains/losses
from the disposal and acquisition of businesses - increased to EUR 6,946
million (2018: EUR 5,834 million), mainly reflecting the operational
performance at Airbus, partially offset by Airbus Defence and Space's
performance and additional ramp-up costs.
Airbus' EBIT Adjusted increased by 32% to EUR 6,358 million (2018: EUR
4,808 million), largely driven by the A320 ramp-up and NEO premium, together
with good progress on the A350.
On the A320 programme, NEO aircraft deliveries rose by 43% year-on-year to
551 aircraft. The ramp-up continued for the Airbus Cabin Flex (ACF) version
of the A321 with almost 100 more deliveries than in 2018. The Airbus teams
are focused on securing the ongoing ACF ramp-up and improving the industrial
flow. Airbus is discussing further ramp-up potential for the A320 programme
beyond rate 63 per month with the supply chain, and already sees a clear
path to further increase the monthly production rate by 1 or 2 for each of
the 2 years after 2021. The breakeven target for the A350 was achieved in
2019. Given overall customer demand for widebody aircraft, Airbus expects
A330 deliveries of approximately 40 aircraft per year beginning in 2020 and
the A350 to stay between a monthly rate of 9 and 10 aircraft.
Airbus Helicopters' EBIT Adjusted increased to EUR 422 million (2018:
EUR 380 million), mainly reflecting an increased contribution from
services and lower research and development costs. This was reduced by a
less favourable delivery mix.
EBIT Adjusted at Airbus Defence and Space declined to EUR 565 million
(2018: EUR 935 million), mainly reflecting the lower performance in a
competitive Space environment and efforts to support sales campaigns. The
Division is targeting a restructuring programme to address its cost
structure and restore profitability to a high single digit margin.
During 2019, 14 A400M military transport aircraft were delivered in line
with the latest delivery schedule, bringing the in-service fleet to 88
aircraft at year-end. Several key milestones towards full capability were
achieved in the year, including the simultaneous deployment of paratroopers
and helicopter air-to-air refuelling dry contacts. In 2020, development
activities will continue towards achieving the revised capability roadmap.
Retrofit activities are progressing in line with the customer-agreed plan.
While the rebaselining of the A400M programme was completed and significant
progress has been made on technical capabilities, the outlook is
increasingly challenging on exports during the launch contract phase, also
in light of the repeatedly extended German export ban to Saudi Arabia. As a
result, the Company has reassessed its export assumptions on future export
deliveries for the launch contract phase and recognised a charge of EUR
1.2 billion in the fourth quarter of 2019.
Consolidated *self-financed R&D* *expenses *totalled EUR 3,358 million
(2018: EUR 3,217 million).
Consolidated *EBIT*(reported) was EUR 1,339 million (2018: EUR 5,048
million), including Adjustments totalling a net EUR -5,607 million. These
Adjustments comprised:
- EUR -3,598 million related to the penalties;
- EUR -1,212 million related to the A400M charge;
- EUR -221 million related to the suspension of defence export licences to
Saudi Arabia by the German government, now prolonged to March 2020;
- EUR -202 million related to A380 programme cost;
- EUR -170 million related to the dollar pre-delivery payment mismatch and
balance sheet revaluation;
- EUR -103 million related to Premium AEROTEC's restructuring plan
launched to improve its competitiveness;
- EUR -101 million of other costs, including compliance costs partially
offset by positive capital gains from the Alestis Aerospace and PFW
Aerospace divestments.
Consolidated reported *loss per share *of EUR -1.75 (2018 earnings per
share: EUR 3.94) includes a negative impact from the financial result,
mainly driven by the revaluation of financial instruments. The financial
result was EUR -275 million (2018: EUR -763 million). The consolidated
*net loss(1)* was EUR -1,362 million (2018 net income: EUR 3,054
million).
Consolidated *free cash flow* *before M&A and customer financing *improved
by 21% toEUR 3,509 million (2018: EUR 2,912 million), mainly reflecting
commercial aircraft deliveries and the earnings performance. Consolidated
*free cash flow* was EUR 3,475 million (2018: EUR 3,505 million). The
consolidated *net cash position* was EUR 12.5 billion on 31 December 2019
(year-end 2018: EUR 13.3 billion) after the 2018 dividend payment of EUR
1.3 billion and pension contribution of EUR 1.8 billion. The *gross cash
position* on 31 December was EUR 22.7 billion (year-end 2018: EUR 22.2
billion).
The Board of Directors will propose the payment of a 2019 dividend of EUR
1.80 per share to the 2020 Annual General Meeting. This represents an
increase of 9% over the 2018 dividend of EUR 1.65 per share. The payment
date is 22 April 2020.
*Outlook *
As the basis for its 2020 guidance, the Company assumes:
-The world economy and air traffic to grow in line with prevailing
independent forecasts, which assume no major disruptions, including from the
coronavirus.
-The current tariff regime to remain unchanged.
The 2020 earnings and FCF guidance is before M&A.
- Airbus targets around 880 commercial aircraft deliveries in 2020.
- On that basis:
Airbus expects to deliver an EBIT Adjusted of approximately EUR 7.5
billion, and
Free Cash Flow before M&A and Customer Financing of approximately EUR 4
billion before:
- EUR -3.6 billion for the penalty payments and;
- A negative mid-to-high triple digit million Euro amount for the
consumption of compliance-related provisions for tax and legal disputes.
*About Airbus*
Airbus is a global leader in aeronautics, space and related services. In
2019, it generated revenues of EUR 70 billion and employed a workforce of
around 135,000. Airbus offers the most comprehensive range of passenger
airliners. Airbus is also a European leader providing tanker, combat,
transport and mission aircraft, as well as one of the world's leading space
companies. In helicopters, Airbus provides the most efficient civil and
military rotorcraft solutions worldwide.
*Contacts for the media*
Guillaume Steuer +33 (0) 6 7382 1168 guillaume.steuer@airbus.com
Rod Stone +33 (0) 6 3052 1993 rod.stone@airbus.com
Stefan Schaffrath +33 (0) 6 1609 5592 stefan.schaffrath@airbus.com
Martin Agüera +49 (0) 175 227 4369 martin.aguera@airbus.com
*Note to editors:* *Live Webcast of the Analyst Conference Call and Annual
Press Conference*
At *07:30 CET* on 13 February 2020, you can listen to the *FY 2019 Results
Analyst Conference* *Call* with *Chief Executive Officer Guillaume Faury*
and *Chief Financial Officer Dominik Asam* via the Airbus website. The
analyst call presentation can also be found on the company website. A
recording will be made available in due course. For a reconciliation of
Airbus' KPIs to "reported IFRS" please refer to the analyst presentation.
The *Airbus Annual Press Conference* on the 2019 Results starts at 09:30 CET
on 13 February and is also webcast live via the Airbus website.
*Airbus Consolidated - Full-Year (FY) Results 2019 *
(Amounts in Euro)
*Airbus Consolidated* *FY 2019* FY 2018 Change
*Revenues*, in millions *70,478* 63,707 +11%
thereof defence, in millions *10,085* 9,903 +2%
*EBIT Adjusted*, in millions *6,946* 5,834 +19%
*EBIT (reported)*, in millions *1,339* 5,048 -73%
*Research & Development expenses*, *3,358* 3,217 +4%
in millions
*Net Income/Loss(1)*, in millions *-1,362* 3,054 -
*Earnings/Loss Per Share (EPS) * *-1.75 * 3.94 -
*Free Cash Flow (FCF)*, in millions *3,475* 3,505 -1%
*Free Cash Flow * *3,567* 2,991 +19%
*before M&A*, in millions
*Free Cash Flow before M&A* *3,509* 2,912 +21%
*and Customer Financing*, in millions
*Dividend per share(2)* *1.80* 1.65 +9%
*Order intake* *81,195* 55,521 +46%
*Airbus Consolidated* *31 Dec* 31 Dec Change
*2019* 2018
*Order Book, in millions* *471,488 459,525 +3%
thereof defence, in millions 38,129* 39,312 -3%
*Net Cash position*, in millions *12,534* 13,281 -6%
*Employees* *134,931* 133,671 +1%
*By *Revenues* *EBIT(reported)*
Business
Segment*
(Amounts in *FY* FY Change *FY * FY Change
millions of *2019* 2018 *2019* 2018
Euro)
Airbus *54,775* 47,970 +14% *2,205* 4,295 -49%
Airbus *6,007* 5,934 +1% *414* 366 +13%
Helicopters
Airbus *10,907* 11,063 -1% *-881 * 676 -
Defence and
Space
Transversal *-1,211* -1,260 - *-399* -289 -
&
Elimination
s
*Total* *70,478* 63,707 +11% *1,339* 5,048 -73%
*By Business Segment* *EBIT Adjusted*
(Amounts in millions of Euro) *FY * FY Change
*2019* 2018
Airbus *6,358* 4,808 +32%
Airbus Helicopters *422* 380 +11%
Airbus Defence and Space *565* 935 -40%
Transversal & Eliminations *-399* -289 -
*Total* *6,946* 5,834 +19%
*By *Order Intake (net)* *Order Book*
Busine
ss
Segmen
t*
*FY* FY Change *31 31 Dec Change
*2019* 2018 Dec* 2018
*2019*
Airbus *768* 747 +3% *7,482 7,577 -1%
, in *
units
Airbus *65,769* 41,519 +58% *424,0 411,659 +3%
, in 82*
millio
ns of
Euro
Airbus *310* 381 -19% *695* 717 -3%
Helico
pters,
in
units
Airbus *7,179* 6,339 +13% *16,62 14,943 +11%
Helico 7*
pters,
in
millon
s of
Euro
Airbus *8,520* 8,441 +1% *32,26 35,316 -9%
Defenc 3*
e and
Space,
in
millio
ns of
Euro
*Airbus Consolidated - Fourth Quarter (Q4) Results 2019*
(Amounts in Euro)
*Airbus *Q4 2019* Q4 2018 Change
Consolidated*
*Revenues*, in *24,310* 23,286 +4%
millions
*EBIT Adjusted*, in *2,813* 3,096 -9%
millions
*EBIT (reported)*, *-2,092* 2,365 -
in millions
*Net *-3,548* 1,601 -
Income/Loss(1)*, in
millions
*Earnings/Loss Per *-4.56* 2.06 -
Share (EPS)*
*By *Revenues* *EBIT (reported)*
Business
Segment*
(Amounts in *Q4* Q4 Change *Q4* Q4 Change
millions of *2019* 2018 *2019* 2018
Euro)
Airbus *19,203* 17,492 +10% *-1,200 2,057 -
*
Airbus *2,295* 2,179 +5% *211* 187 +13%
Helicopters
Airbus *3,201* 4,012 -20% *-964* 197 -
Defence and
Space
Transversal *-389* -397 - *-139* -76 -
&
Elimination
s
*Total* *24,310* 23,286 +4% *-2,092 2,365 -
*
*By Business Segment* *EBIT Adjusted*
(Amounts in millions of Euro) *Q4* Q4 Change
*2019* 2018
Airbus *2,525* 2,468 +2%
Airbus Helicopters *217* 178 +22%
Airbus Defence and Space *210* 526 -60%
Transversal & Eliminations *-139* -76 -
*Total* *2,813* 3,096 -9%
*Q4 2019 revenues* increased by 4%, reflecting the commercial aircraft
delivery mix at Airbus and a positive impact from foreign exchange rates
partially offset by lower revenues at Airbus Defence and Space.
*Q4 2019 EBIT Adjusted *declined by 9%, mainly reflecting the lower
performance at Airbus Defence and Space.
*Q4 2019 EBIT (reported) *of EUR -2,092 million reflected net adjustments
of EUR -4,905 million booked in the quarter. Net Adjustments in the fourth
quarter of 2018 amounted to EUR -731 million.
*Q4 2019 Net Loss(1)*of EUR -3,548 million reflected the lower EBIT
(reported) and impact from non tax-deductible Adjustments, partially offset
by an improved financial result.
*EBIT (reported) / EBIT Adjusted Reconciliation*
The table below reconciles EBIT (reported) with EBIT Adjusted.
*Airbus Consolidated* *FY 2019*
(Amounts in millions of Euro)
*EBIT (reported)* *1,339*
*thereof:*
Penalties *-3,598*
A400M charge *-1,212*
Defence export ban *-221*
A380 programme cost *-202*
$ PDP mismatch/balance sheet revaluation *-170*
Premium AEROTEC restructuring plan *-103*
Others *-101*
*EBIT Adjusted* *6,946*
*Glossary *
*KPI* *DEFINITION*
*EBIT* The Company continues to use
the term EBIT (Earnings before
interest and taxes). It is
identical to Profit before
finance result and income taxes
as defined by IFRS Rules.
*Adjustment* Adjustment, an *alternative
performance measure,* is a term
used by the Company which
includes material charges or
profits caused by movements in
provisions related to
programmes, restructuring or
foreign exchange impacts as
well as capital gains/losses
from the disposal and
acquisition of businesses.
*EBIT Adjusted* The Company uses an
*alternative performance
measure, *EBIT Adjusted*, *as a
key indicator capturing the
underlying business margin by
excluding material charges or
profits caused by movements in
provisions related to
programmes, restructurings or
foreign exchange impacts as
well as capital gains/losses
from the disposal and
acquisition of businesses.
*EPS Adjusted* EPS Adjusted is an *alternative
performance measure* of basic
earnings per share as reported
whereby the net income as the
numerator does include
Adjustments. For
reconciliation, see the Analyst
presentation.
*Gross cash position* The Company defines its
consolidated gross cash
position as the sum of (i) cash
and cash equivalents and (ii)
securities (all as recorded in
the consolidated statement of
financial position).
*Net cash position* For the definition of the
*alternative performance
measure* net cash position, see
Registration Document, MD&A
section 2.1.6.
*FCF* For the definition of the
*alternative performance
measure* free cash flow, see
Registration Document, MD&A
section 2.1.6.1. It is a key
indicator which allows the
Company to measure the amount
of cash flow generated from
operations after cash used in
investing activities.
*FCF before M&A* Free cash flow before mergers
and acquisitions refers to free
cash flow as defined in the
Registration Document, MD&A
section 2.1.6.1 adjusted for
net proceeds from disposals and
acquisitions. It is an
*alternative performance
measure* and key indicator that
reflects free cash flow
excluding those cash flows
resulting from acquisitions and
disposals of businesses.
*FCF before M&A and customer Free cash flow before M&A and
financing* customer financing refers to
free cash flow before mergers
and acquisitions adjusted for
cash flow related to aircraft
financing activities. It is an
*alternative performance
measure *and indicator that may
be used from time to time by
the Company in its financial
guidance, especially when there
is higher uncertainty around
customer financing activities.
*Footnotes:*
*1. *Airbus SE continues to use the term Net Income/Loss. It is identical to
Profit/Loss for the period attributable to equity owners of the parent as
defined by IFRS Rules.
*2. *To be proposed to the Annual General Meeting on 16 April 2020.
*Safe Harbour Statement:*
This press release 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 Airbus' businesses;
- Significant disruptions in air travel (including as a result of the spread
of disease or 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, Airbus SE's 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 the 2018 Airbus SE "Registration
Document" dated 29 July 2019, including the Risk Factors section.
Any forward-looking statement contained in this press release speaks as of
the date of this press release. Airbus SE undertakes no obligation to
publicly revise or update any forward-looking statements in light of new
information, future events or otherwise.
*Rounding*
Due to rounding, numbers presented may not add up precisely to the totals
provided and percentages may not precisely reflect the absolute figures.
13-Feb-2020 CET/CEST The DGAP Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
Language: English
Company: Airbus SE
P.O. Box 32008
2303 DA Leiden
Netherlands
Phone: 00 800 00 02 2002
Fax: +49 (0)89 607 - 26481
Internet: www.airbusgroup.com
ISIN: NL0000235190
WKN: 938914
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
EQS News ID: 974479
End of Announcement DGAP News Service
974479 13-Feb-2020 CET/CEST
(END) Dow Jones Newswires
February 13, 2020 00:30 ET (05:30 GMT)
