DGAP-Adhoc: Airbus Group N.V.: Airbus Group Reports Robust

Airbus Group N.V. / Key word(s): Quarter Results 30.04.2015 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, 30 April 2015 Airbus Group Reports Robust First Quarter 2015 Results - Solid operational performance supports EPS and cash flow, further enhanced by divestments - Revenues EUR 12.1 billion, EBIT* before one-off EUR 651 million - Earnings per share up 80 percent to EUR 1.01 - Free cash flow EUR 452 million, including sale of Dassault Aviation shares - Airbus Group on track to deliver 2015 guidance Airbus Group (stock exchange symbol: AIR) reported robust first quarter 2015 results with improved cash flow and confirmed its full year guidance. "We had a good start into 2015, with a solid operational performance and improved cash generation, further supported by asset sales," said Tom Enders, Airbus Group Chief Executive Officer. "We are on track to achieve our full year targets due to both the continued focus on programme management and the implementation of our core strategy. We will review capital allocation towards the end of the year as we progress on the A350 ramp up, A320 transition and our divestments, while the order book provides a strong platform for future growth." Group order intake(1) in the quarter was EUR 21 billion (Q1 2014: EUR 21 billion), with the order book(1) value rising to EUR 955 billion as of 31 March 2015 (year-end 2014: EUR 858 billion) taking into account a positive revaluation linked to the strengthening of the US dollar. Airbus received 101 net commercial aircraft orders in the quarter (Q1 2014: 103 net orders), including 34 A330 Family aircraft. Airbus Helicopters received 86 net orders (Q1 2014: 78 units), including 49 H145s and 19 H175s, while in April the H225M Caracal was preselected by Poland for the test phase of its multi-role military helicopter tender. Order intake by value at Airbus Defence and Space rose 16 percent, with good momentum seen for military aircraft including seven light and medium transport aircraft. Group revenues totalled EUR 12.1 billion (Q1 2014: EUR 12.6 billion), mainly reflecting the phasing of deliveries at Commercial Aircraft which are expected to be back-loaded in 2015, especially for the A350 XWB and A380. A total of 134 commercial airplanes were delivered (Q1 2014: 141 units), including one A350 XWB and four A380s. Commercial Aircraft's revenues totalled EUR 8.6 billion with favourable foreign exchange mitigating the lower delivery volume. Helicopters' revenues of EUR 1.3 billion reflect the ramp-up in government programmes with total deliveries of 62 units (Q1 2014: 74 units). Defence and Space's revenues of EUR 2.6 billion mainly reflect the deconsolidation of launcher revenues with the creation of the Airbus Safran Launchers Joint Venture (JV) while two A400Ms were delivered, including the first aircraft for export customer Malaysia. 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 - was EUR 651 million (Q1 2014: EUR 700 million). Commercial Aircraft's EBIT* before one-off increased to EUR 569 million (Q1 2014: EUR 527 million), driven by operational improvement and favourable cost phasing including research and development (R&D) expenses. Helicopters' EBIT* before one-off decreased slightly to EUR 52 million (Q1 2014: EUR 58 million), due to a less favourable revenue mix but was supported by the Division's transformation plan. Defence and Space's EBIT* before one-off was EUR 90 million (Q1 2014: EUR 85 million), supported by progress in the Division's restructuring plan. Headquarters' EBIT* before one-off was lower compared to a year earlier and included an adjustment to the 2014 Dassault Aviation result. Group self-financed R&D expenses totalled EUR 701 million (Q1 2014: EUR 727 million) while the Group EBIT* before one-off return on sales was 5.4 percent (Q1 2014: 5.5 percent). The production ramp-up on the A350 XWB programme is ongoing, with the second aircraft delivered to Qatar Airways as planned. The A320neo programme remains on schedule, with the initial aircraft equipped with CFM engines rolled out earlier this month. The A380 programme is on track to reach breakeven this year. The new H160 was unveiled in the quarter as part of Helicopters' product renewal strategy. Airbus Safran Launchers started operations during the first quarter and preparations are being made for the JV's second phase. Reported EBIT*(3) increased 73 percent to EUR 1,241 million (Q1 2014: EUR 719 million) and was boosted by net positive one-offs of EUR 590 million. This comprised a EUR 697 million net gain from the sale of an additional 17.5% stake in Dassault Aviation(5),, a gain of EUR 43 million linked to the creation of the launcher JV's first phase and a EUR 150 million net charge from the dollar pre-delivery payment mismatch and balance sheet revaluation. Net income(4) increased by 80 percent to EUR 792 million (Q1 2014: EUR 439 million), while earnings per share (EPS) rose by the same amount to EUR 1.01 (Q1 2014: EUR 0.56). The finance result was EUR -366 million (Q1 2014: EUR -107 million) and included negative one-offs of EUR 229 million from foreign exchange revaluation linked to the weakening of the euro. As of 31 March 2015, the hedge portfolio was worth $ 94.0 billion after adding new hedge contracts of $11.4 billion in the quarter at an average rate of EUR 1 = $ 1.21. The accounting mark-to-market value of the hedge book was EUR -13.4 billion based on a closing rate of EUR 1 = $1.08. Airbus Group will prepare stand-alone N.V. statutory accounts under IFRS as of 1 January 2015. Airbus Group's management considers that the recognition of investments at cost less impairment in the Airbus Group N.V. company financial statements is a more appropriate approach to provide a fair insight into the company's financial position with regard to the determination of distributable equity and complements the IFRS Airbus Group Consolidated Financial Statements. Free cash flow before mergers and acquisitions improved significantly to EUR -1,136 million (Q1 2014: EUR -2,060 million), reflecting the continued focus on cash control while proceeds of around EUR 1.6 billion from the sale of Dassault Aviation shares boosted total free cash flow to EUR 452 million (Q1 2014: EUR -2,034 million). The net cash position at the end of March 2015 was EUR 9.5 billion (year-end 2014: EUR 9.1 billion) with a gross cash position of EUR 17.3 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 First Quarter (Q1) Results 2015 (Amounts in euro) <pre> Airbus Group Q1 2015 Q1 2014 Change Revenues, in millions 12,078 12,648 -5% thereof defence, in millions 2,284 2,151 +6% EBITDA (2), in millions 1,757 1,180 +49% EBIT before one-offs (3), in millions 651 700 -7% EBIT (3), in millions 1,241 719 +73% Research & Development expenses, 701 727 -4% in millions Net Income (4), in millions 792 439 +80% Earnings Per Share (EPS) (4) 1.01 0.56 +80% Free Cash Flow (FCF), in millions 452 - 2,034 - Free Cash Flow - 1,136 - 2,060 - before M&A, in millions Free Cash Flow 483 - 1,896 - before Customer Financing, in millions Order Intake (1), in millions 20,994 21,101 -1% Airbus Group 31 March 31 Dec Change 2015 2014 Order Book (1), in millions 954,564 857,519 +11% thereof defence, in millions 39,876 42,240 -6% Net Cash position, in millions 9,460 9,092 +4% Employees 137,855 138,622 -1% by Division Revenues EBIT (3) (Amounts in millions of Euro) Q1 Q1 Change Q1 Q1 Change 2015 2014 2015 2014 Commercial Aircraft 8,565 8,937 -4% 419 546 -23% Helicopters 1,285 1,182 +9% 52 58 -10% Defence and Space 2,603 2,743 -5% 133 85 +56% Headquarters / Eliminations / Others -375 - 214 - 637 30 - Total 12,078 12,648 -5% 1,241 719 +73% by Division Order Intake (1) Order Book (1) (Amounts in millions of Euro) Q1 Q1 Cha- 31 31 Dec Cha- 2015 2014 nge March 2014 nge 2015 Commercial Aircraft 17,2 17,9 -4% 901,565 803,633 +12% 17 38 Helicopters 1,428 1,202 +19% 12,371 12,227 +1% Defence and Space 2,390 2,068 +16% 41,854 43,075 -3% Headquarters / Eliminations / Others - 41 - 107 - - 1,226 - 1,416 - Total 20,9 21,1 -1% 954,564 857,519 +11% 94 01 </pre> 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) 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. 30.04.2015 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 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 End of Announcement DGAP News-Service ---------------------------------------------------------------------------