Global Investor Forum 2012

Airbus
Fabrice Brgier
Chief Executive Officer Airbus

Page 1

Global Investor Forum 2012

Safe Harbour Statement

Disclaimer
This presentation 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 EADS businesses;
Significant disruptions in air travel (including as a result of 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, EADS 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 EADS Registration Document dated 12th April 2012.
Any forward-looking statement contained in this presentation speaks as of the date of this presentation. EADS undertakes no obligation to publicly revise or update any
forward-looking statements in light of new information, future events or otherwise.

Page 2

Global Investor Forum 2012

Content

Serial Programmes Execution

Development Programmes Execution
Improving Financial Performance
Strategic Factors

Page 3

Global Investor Forum 2012

Serial Civil Programmes (1/2)

A320 Family:

A320 - Production Rate

Backlog 3,462 aircraft (including 1,579 A320neo)

40

42 aircraft / month since October, an industry

record despite supply chain issues

30

Cost optimisation programme launched last year

will bring full benefits in 2014

38

35
25
20
15

Pricing policy securing margins

A330 Family:
Backlog 314 aircraft

Page 4

12
10

9.5 aircraft / month since May, 10 / month next year

242t variant launched for EIS in 2015

Cost optimisation programme launched this year

6
2

A330 - Production Rate

40

42

Global Investor Forum 2012

Serial Civil Programmes (2/2)

A380 production is reaching a serial standard:
Wing rib feet issue is fixed :
Certifications of the repair solution and new wing line fit expected in January 2013
Target maintained at 30 deliveries in 2012
Temporary decrease in 2013 due to working parties reducing FAL capacity
Full aircraft line fit deliveries from January 2014
RC reduced by 40% since 2009 and in line with rank 100 target
Further NRC and RC reduction launched to improve program financials
A380: Total backlog of 165 aircraft

Page 5

Global Investor Forum 2012

Tankers and Light & Medium Aircraft

Succesful tankers programme:
28 A330-MRTT ordered from 4 customers
(Australia, UK, UAE and Saudi Arabia)
6 A330-MRTT delivered
October 2012, the French Ministry of Defence
announced intention to order 14 A330-MRTT
Potential market estimate of non-US long range
tankers: more than 100 aircraft
A330-MRTT & F18

Light & Medium aircraft continue to grow

despite defense budget cuts:
32 orders so far in 2012
25 deliveries planned in 2012
Total backlog of 37 aircraft
CN 235

Page 6

Global Investor Forum 2012

Content
Serial Programmes Execution

Development Programmes Execution

Improving Financial Performance
Strategic Factors

Page 7

Global Investor Forum 2012

A350 XWB in the Making

Page 8

MSN001 in final assembly

Static test specimen completed

Hot Weather Campaign performed

MSN003 Wing in Broughton

Global Investor Forum 2012

A350 XWB: Achievements

Test aircraft:
Static test specimen FAL started in April, achieved in November and now in the test facility
Wing drilling issues that delayed MSN1 wing assembly were fixed during this summer
MSN1 start of FAL achieved in September: fuselage, wing and tail assembly completed
without problem: good maturity of the assembly process
FAL opening ceremony held on October 23rd
Next development aircraft progressing well in pre-FAL
Systems and equipments tests:
Trent XWB engine 1st flight on A380 on Feb 18th : good performance
Specific test benches for landing gears, fuel system and cabin now in service
Nose section power-on achieved in July on MSN1
Full fuselage power-on achieved in November on MSN1
Aircraft zero readiness for virtual flight achieved in September
Overall high level of system maturity demonstrated by the tests

Page 9

Global Investor Forum 2012

A350 XWB: Way Forward

Key challenges ahead:
Route to First Flight mid 2013
Virtual First Flight with aircraft zero
Engine certification
Static tests to enable First Flight
Ground tests on MSN1 & MSN3

Route to Entry Into Service in H2 2014:

Cabin Virtual First Flight with cabin-fitted development aircraft (MSN2)
5 test aircraft and related flight test campaign
Early Long Flights and Route Proving flights
Complete aircraft certification tests
Work closely with Launch Customers to prepare Entry Into Service

Prepare industrial ramp-up

Strengthen suppliers capacity
Risk management as a priority:
Robust alert and fix process applied in order to ensure maturity at each milestone
Commercial de-risking strategy
Page 10

Global Investor Forum 2012

A350 XWB-1000: Risk Limited Derivative

Customers on board:
Cathay Pacific and Qatar Airways have chosen the new version of -1000
Technology readiness ensured:
Physical demonstrators have brought the proof of concepts
Lower performance challenge due to -900 experience embedded in specifications
On track for 2017 EIS:
Suppliers engaged and active participation in the development plateau
Dedicated organisation in place with over 2,000 people
Detailed design on track to start early 2013

Page 11

Global Investor Forum 2012

A400M: 4 Deliveries Planned in 2013

Route to EIS:
Engine issues have been fixed
Route proving tests restarted
Already 4,000 hours of Flight Tests

A400M Patrol Before Take Off

EASA: Initial Type Certificate in April 2012

Full Type Certificate planned in Q1 2013
Military configuration for Initial Operational
Clearance to be agreed with customers
The programme starts ramping-up:
1st A400M delivery to France, scheduled Q2 2013
The 4 aircraft to be delivered in 2013 are in FAL
Progressive industrial ramp-up up to 2.5 aircraft
per month in 2015
Export activities will start in 2013:

A400M MSN007 in FAL

Page 12

174 orders achieved before first flight

Potentially ~400 extra sales in the next 30 years

Global Investor Forum 2012

A320neo: Secure Long Term Profitability

A320neos successful launch and Boeings me too strategy
secure our SA long term leadership with very limited risks
Product development is well on track:
Concept phase successfully closed in October
Detailed design phase started and first parts manufactured
GTF engine validation programme started in November

Pratt & Whitney GTF test engine

Overall aircraft performance on track

Strong adherence to schedule
Mitigate risks during the transition period with Neo:
Changes limited to adaptation of engine options

Nose cowl

Rigid maturity requirements in place (technical, industrial and customer support) to

guarantee entry into service, ramp-up and reliability
Full transition over more than 2 years
Page 13

Global Investor Forum 2012

Content
Serial Programmes Execution
Development Programmes Execution

Improving Financial Performance

Strategic Factors

Page 14

Global Investor Forum 2012

Support Programmes Execution

Adapt Airbus organisation to its current challenges:
Maintain harmonised processes and ways of working but simplify and empower teams
Plants fully in charge to deliver the series programmes at high rates
Programmes fully in charge of A350 XWB, A400M and A320neo development teams
End-to-end accountability of the procurement team in charge to manage the supply
chain (sourcing, contracting, ordering and developing suppliers)
Agility as a mind-set:
Focus teams on their priorities and give them the means to quickly react to unexpected
disturbances
Speed-up the execution of decided improvements
Foster entrepreneurial spirit across management
Boost capacity to openly and quickly integrate innovation

Page 15

Global Investor Forum 2012

Secure Operational Margin Increase

Business transformation beyond Power 8+:
Leverage volume increase to further reduce costs on SA & LR
Drive overall Airbus competitiveness
Align and standardise ways of working, whilst reducing complexity in order to generate
further savings
Improve supply chain performance
Boost services efficiency and growth

Pricing policy aligned to maximise margins

A380: secure break-even in 2015 even at 30 deliveries per year:
Further RC reduction aligned with break-even objective
Further NRC and fixed cost reduction programme has been launched and will deliver
significant savings by 2015, while retaining capability to produce above rate 3

Page 16

Global Investor Forum 2012

Content
Serial Programmes Execution
Development Programmes Execution
Improving Financial Performance

Strategic Factors

Page 17

Global Investor Forum 2012

Strategic Factors (1/2)

Our product policy drives the market:
Anticipate our customers needs and meet or exceed their expectations
Sharklets are bringing a significant improvement to the Single Aisle Family
A320neo is 18 months ahead of the competition
A330 more capable 242t variant guarantees significant programme life extension
A350-1000 will outdate the 777
Continuously improve our products by embedding the right technology

Keep ahead of the new competitors entering the market:

Keep investing in innovation and new technologies for the next generation of aircraft
Be ready to offer step changes in economics when the technology is available

Page 18

Global Investor Forum 2012

Strategic Factors (2/2)

Protect against economic downturns and adverse /$ effect:
Worldwide balanced distribution of the backlog, focused on the fastest growing regions
Globalised supply chain and industrial footprint

Broaden the range of Airbus services portfolio:

Extend and industrialise operations and maintenance solutions proposed to the airlines
Complete the development of an end-to-end air traffic management offer
Deliver material management synergies and growth following Satair acquisition
Grow our training business
Provide high capacity, competitive and integrated turnkey solutions for upgrades & retrofit
Establish Flight Hour Services as a standard after a promising start (already 100 aircraft
under contract)

Page 19

Global Investor Forum 2012

Positive Trend to Reach Profitability Target

Airbus RoS 10%* in 2015

9m 2012

2015
Target
2015

Key drivers for financial performance:

Delivery ramp-up supported by a strong commercial momentum
Increase operating margins
Ensure A380 route to break-even
Secure A350 XWB EIS in 2014 and prepare the ramp-up
* @1.30 /$ and before A350
Page 20