DGAP-Adhoc: Airbus Group N.V.: Airbus Group 2013 Results:

Airbus Group N.V. / Key word(s): Final Results 26.02.2014 07:00 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ad-hoc release, 26 February 2014 Airbus Group 2013 Results: Another Year Of Operational And Financial Improvement - Revenues increase 5 percent to EUR 59.3 billion - EBIT* before one-off rises 21 percent to EUR 3.6 billion - Net income rises 22 percent to EUR 1.5 billion, despite one-off charges - Proposed 2013 dividend EUR 0.75 per share, up 25 percent from EUR 0.60 in 2012 - Airbus to increase single-aisle production rate to 46 per month in 2016 - Airbus Group expects moderate RoS growth in 2014 and confirms 2015 RoS objective - Breakeven free cash flow before acquisitions targeted for 2014 Airbus Group (stock exchange symbol: AIR), known as EADS until 31 December 2013, reported improved full year revenues and profits, driven by increased aircraft deliveries and operational improvement across the Group. Group order intake(4) in 2013 rose sharply to EUR 218.7 billion (FY 2012: EUR 102.5 billion), reflecting strong commercial momentum at Airbus and major contracts in the space business. As of 31 December 2013, the order book(4) was worth EUR 686.7 billion (year-end 2012: EUR 566.5 billion). The defence order book was worth EUR 47.3 billion (year-end 2012: EUR 49.6 billion). "2013 was an important and eventful year for the Group, not least because of the far-reaching make-over of our governance, shareholder structure and strategy. On the business and operational side we again increased revenues and profits, achieved record aircraft deliveries, the A350 XWB's first flight and initial A400M deliveries," said Airbus Group CEO Tom Enders. "Order intake was particularly strong for our Airbus commercial aircraft and provides a solid platform for the future growth of our Group. Strong demand allows us now to increase the single-aisle production rate. The restructuring and transformation efforts of Airbus Defence and Space as well as Airbus Helicopters are progressing well and will enhance the competitiveness and profitability of these businesses. We remain strongly focused on programme execution across the whole company." In 2013, revenues increased five percent to EUR 59.3 billion (FY 2012: EUR 56.5 billion), mainly reflecting higher commercial aircraft deliveries and the A400M ramp-up. Defence revenues were stable and reflected the portfolio mix of development and long-term defence contracts. 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 - increased to EUR 3.6 billion (FY 2012: EUR 3.0 billion) and to EUR 2.3 billion for Airbus (FY 2012: EUR 1.8 billion). The overall improvement was driven by Airbus, which achieved good margin evolution despite the ramp up in A350 XWB support costs while the transformation efforts launched at the former Cassidian and Astrium Divisions have started to deliver results. The Group EBIT* before one-off margin increased to 6.0 percent. Reported EBIT*(2) increased to EUR 2,661 million (FY 2012: EUR 2,144 milliona) despite EUR 913 million in total one-off charges for the year. The fourth quarter of 2013 included a EUR 434 million net charge to reflect the higher level of costs on the A350 XWB programme as well as a EUR 292 million provision related to the restructuring of the Airbus Defence and Space Division and Headquarters. The finance result was EUR -630 million (FY 2012: EUR -453 million) while net income(3) increased to EUR 1,465 million (FY 2012: EUR 1,197 milliona), or earnings per share of EUR 1.85 (earnings per share FY 2012: EUR 1.46a). Self-financed research & development (R&D) expenses were stable at EUR 3,160 million (FY 2012: EUR 3,142 million). Based on earnings per share (EPS) of EUR 1.85, the Airbus Group Board of Directors will propose to the Annual General Meeting the payment to shareholders of a dividend of EUR 0.75 per share on 3 June 2014 (FY 2012: EUR 0.60 per share). The record date should be 2 June 2014. "In December we announced our dividend policy and we are now implementing this following the solid progress we made during the year," said Harald Wilhelm, CFO of Airbus Group. "For our shareholders, this proposed dividend represents a pay-out ratio of 40 percent and a year-on-year dividend per share growth of 25 percent." Free cash flow before acquisitions amounted to EUR -818 million (FY 2012: EUR 1,449 million) and reflected the increased investment required to support programmes in production and development. The last quarter of 2013 benefited from a very strong cash performance. Capital expenditure of EUR 2.9 billion was mainly driven by progress on A350 XWB development aircraft and includes development costs capitalised under IAS 38 of EUR 354 million for the A350 XWB. The net cash position at the end of 2013 was EUR 9.1 billion (year-end 2012: EUR 12.3 billion) after taking into account the EUR 1.9 billion invested in the share buyback programme and a dividend payment of EUR 469 million. The gross cash balance at the end of 2013 was EUR 14.7 billion, providing financial flexibility and security. 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. Gross 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. In 2014, using EBIT* before one-off, Airbus Group expects moderate return on sales growth and confirms its 2015 return on sales target of 7-8 percent(7). 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 (PDP) 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. a. Certain year-end 2012 figures have been restated to reflect the change to pension accounting under IAS 19 while Airbus' figures also reflect the inclusion of ATR and Sogerma within Airbus Commercial. ATR and Sogerma were formerly included in Other Businesses. Airbus Group Airbus Group is a global leader in aerospace, defence and related services. In 2013, the Group - comprising Airbus, Airbus Defence and Space and Airbus Helicopters - generated revenues of EUR 59.3 billion and employed a workforce of around 144,000. (The legal name change from European Aeronautic Defence and Space Company EADS N.V. ("EADS N.V.") to Airbus Group N.V. is subject to the approval of the Annual General Meeting). Contacts for the media: Martin Agüera +49 (0) 175 227 4369 Rod Stone +33 (0) 6 30 521 993 26.02.2014 DGAP's 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 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 ---------------------------------------------------------------------------