title of presentation runs here on two lines / arial ... · 29 97t a321neo extends market reach...

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Commercial update John Leahy

Chief Operating Officer – Customers

London,

December 11th, 2014

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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 develop ments 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 Group’s 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, Airbus Group’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 Airbus Group “Registration Document” dated 4 Apri l 2014.

Any forward-looking statement contained in this presentation speaks as of the date of this presentation. Airbus Group undertakes no obligation to

publicly revise or update any forward-looking statements in l ight of new information, future events or otherwise.

Safe Harbour Statement

GLOBAL INVESTOR FORUM 2014

3

Global Market Forecast 2014: Highlights


Passenger aircraft (≥ 100 seats)

Jet f reight aircraft (>10 tons)

Source: Airbus GMF 2014

GMF 2014 key numbers and 20-year change

World Fleet Forecast 2013 2033 % change 2013-2033

RPK (trillion) 5.8 14.6 151%

Passenger Aircraft Fleet

16,855 34,818 107%

New passenger aircraft deliveries

30,555

Dedicated Freighters 1,605 2,645 65%

New freighter aircraft deliveries

803

Total New Aircraft Deliveries 31,358

4

Air traffic doubles every 15 years


Source: ICAO, Airbus GMF 2014

0

2

4

6

8

10

12

14

16

1973 1978 1983 1988 1993 1998 2003 2008 2013 2018 2023 2028 2033

World annual RPK* (trillion)

5

Global Middle Class to more than double


Source: Kharas and Gertz, Airbus

EOY 2013

** Households with daily expenditures between $10

and $100 per person (at PPP)

679 697 673

264 261 252

1 413

2 782

4 450

0

1 000

2 000

3 000

4 000

5 000

2013* 2023 2033

Global Middle Class**

(Millions of people)

Emerging countries

World Population 8,500 7,900 7,200

% of world population 63% 48% 33%

3,740

2,356

5,375

North America

Europe

6

0,01

0,10

1,00

10,00

0 10 20 30 40 50 60

2013 trips per capita

22% of the population of the emerging countries took a trip a year in 2013


Source: Sabre (annualized September 2013 data),

IHS Global Insight, Airbus |

*Passengers originating from respective country

Bubble size proportional to population

2013 GDP per capita (thousands $US)

Europe

~1 trip per capita

North America

1.6 trips per capita

China


India


7

0,01

0,10

1,00

10,00

0 10 20 30 40 50 60

…but by 2033, 66% of the population of the emerging countries will take a trip a year


Source: Sabre (annualized September 2013

data), IHS Global Insight, Airbus |

*Passengers originating from respective country

Bubble size proportional to population

India 2033


China 2033


2033 trips per capita

2013 GDP per capita (thousands $US)

8

0

20

40

60

80

100

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Gross order share since 1995

Airbus and Boeing world market share


To end Nov ember 2014

Boeing 82%

Airbus 18%

9

Boeing 1,270 55%

Airbus 1,039 45%

Net

2014 market share


Data to December 5th 2014

Boeing 1,376 51%

Airbus 1,336 49%

Gross

2,712 industry

orders

2,309 industry

orders

10

2014 market share by category - gross



1,058 47%

1,173 53%

Single aisle 2,231 orders

A320 737

316 69%

143 31%

Widebody 459 orders

2 9%

20

91%

VLA 22 orders

A330

A350

767

777

777X

787

A380 747-8

A350 57 53%

787 49 47%

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2014 market share by category - net



978 50%

970 50%

Single aisle 1,948 orders

A320 737

292 84%

55 16%

Widebody 347 orders

0

14 100%

VLA 14 orders

A330

A350

767

777

777X

787

A380 747-8

A350 -26

787 25 100%

12

Combined industry backlog of over 11,500 aircraft



Airbus

A320ceo 1,470

A320neo 3,362

A330 215

A330neo 40

A350 XWB 786

A380 171

Boeing

737NG 1,665

737 MAX 2,553

767/787 893

777 232

777X 286

777F 35

747-8 26

747-8F 13

5,703 6,044 New Industry record

13

0

1000

2000

3000

4000

5000

6000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Airbus delivery and backlog comparison


To December 5th 2014

Airbus backlog 6,044

14

0

1000

2000

3000

4000

5000

6000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

0

200

400

600

800

1000

1200

Airbus delivery and backlog in-synch at 5:1 1990-2006



Airbus backlog Airbus deliveries (scale 1/5 x backlog)

15

0

1000

2000

3000

4000

5000

6000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

0

200

400

600

800

1000

1200

Airbus delivery and backlog at 9:1 in 2014 with conservative delivery ramp-up



Airbus backlog Airbus deliveries (scale 1/5 x backlog)

16

0

200

400

600

800

1000

1200

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Production policy results in smooth ramp-up. No troughs and peaks


To end Nov ember 2014

Annual deliveries

Airbus

17

0

200

400

600

800

1000

1200

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Delivery comparison


Annual deliveries

Boeing

-55% -59% +140%

+130%

18

Airbus product line


250 seats

300 seats

350 seats

400 seats

500 seats

150 seats

200 seats

100 seats

A380

747-8

A330 Family

A350 Family

787 Family

777/777X

A320 Family 737 Family

Seat capacity

19

Over 11,000 A320 Family sales



6,331 4,832

Orders Deliveries Backlog

11,163

20

NEO leads the MAX in orders and customers



Source: Airbus Orders & Deliveries,

Boeing.com

A320neo

3,362 orders

737 MAX

2,553

orders

63 Customers

46 Customers

Including

12 customers converting

243 737NG

(9% conversions)

Including

6 customers converting

102 A320ceo

(3% conversions)

21


22

At launch, A320neo lowered fuel burn per seat by 15%


800 nm sector

High density configuration

A319ceo A319neo A320ceo A320neo A321ceo A321neo

156 seats 156 seats

-15% -15%

180 seats 180 seats 220 seats

-16%

220 seats

At launch

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With increased exit limits, A320neo lowers fuel burn per seat by 20%


800 nm sector


Airbus Cabin Flex (ACF) is an optional

f eature


-17% -18% -21%

Exit limit increase

156 seats 160 seats 180 seats 189 seats 220 seats 240 seats

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In 2020 A320neo Family fuel burn per seat will be up to 23% lower


800 nm sector


Airbus Cabin Flex (ACF) is an optional

f eature


-19% -20% -23%

156 seats 160 seats 180 seats 189 seats 240 seats

Exit limit increase plus PW 2% PIP from 2019

220 seats

25

0

20

40

60

80

100

120

140

160

180

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Nominal $US

High oil prices here for the long-term


Source: IHS Energy, Airbus

Brent oil price (US$ per bbl) Forecast History

26

Value of A320neo cash operating cost savings


$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

40 50 60 70 80 90 100 110 120 130

Brent oil price (US$ per bbl.)

Dec 2014

Last 15 years avg.

NPV A320neo cash costs compared to A320ceo - 800nm sector

NPV assumptions:

15 y ear

10% discount rate

800nm av erage sector

(Millions)

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A321neo with more range than a 757-200 for longer range markets


Product Development Study

A321neo Airbus Cabin-Flex configuration

for business class layout flexibility

MTOW 97t

ACT#2-3

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0

5000

10000

15000

20000

25000

0 1000 2000 3000 4000 5000 6000

Distance (nm)

A321neo with 97t MTOW flies farther than a 757-200W


97t A321 with 3 ACTs

Product Development Study

Aircraft MTOW Pax Range

757-200W 115t 169 3800nm

A321neo 97t 164 3900nm

Payload (kg)

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97t A321neo extends market reach


ASCEND data

North - South routes

special focus on Brazil

East coast - Europe

Europe -

Middle East Europe -

West Africa Australia –

South-east Asia

North-Europe -

Asia

469 Boeing 757 aircraft in passenger service

8

45

103

310

3

30

Airbus Widebody Family: matching market demand


31

159

786 750

152

66

286

634 616

141

0

100

200

300

400

500

600

700

800

900

A380 A350 A330 A330neo 747-8 777X 777 787 767

Airbus leads in Passenger and freighter widebody orders since A350 XWB launch


Net widebody passenger and freighter orders

since A350 XWB launch in December 2006

Net orders + A330neo commitments

December 2006 to December 5th 2014

Airbus 1,847 Boeing 1,743

32

1,127 255


1,394

~1,500 A330 sales and commitments


At end Nov ember 2014.

Sales/backlog include 40 firm A330neo

33

A330 Family has the largest operator base of any widebody

0

20

40

60

80

100

120

2004 2006 2008 2010 2012 2014

Year

A330

787

777


Commercial airline operators with passenger aircraft

in-serv ice and / or on order as at end each year.

Unidentified operators excluded.

Source: ASCEND

Number of passenger operators

34

242t A330ceo EIS in May 2015


35

Delta orders 25 A350-900 and 25 A330-900neo


14% lower fuel/seat than A330ceo - Delta’s most profitable aircraft

10% larger than 787-9 - more revenue on growing Pacific routes

An optimized solution for trans-Atlantic and trans-Pacific Markets

A350-900

350 seats

7,500nm range

A330-900neo

310 seats

6,000nm range

36

A330neo 18in economy seating


37

1m 64m

Aerodynamic improvement


Modified upper belly fairing

Wing re-twist Composite winglet extension

Increased wing span to 64m

(+3.7m)

Wingspan stays within Code E category

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- 14% fuel per seat

A330neo 14% lower fuel burn per seat


*ICE : increased Cabin Efficiency

A330 RR Trent 772B – 2014 deliv eries

Max passenger Payload – 4,00nm mission

A330ceo

Airframe Powerplant

RR Trent

772B

RR Trent

7000

A330neo

- 4%

Aerodynamic

Improvements

(shark lets and

optimisation)

-11%

Fuel

burn

+2%

Powerplant

weight

+1%

Engine

integration

Wing

modifications - 12% fuel per trip

A330neo

+ 6-10 seats*

39

Total Operating

Cost per seat

+7%

787-9

304 seats

Cash Operating

Cost per seat

Datum

787-9

304 seats

$1.3m/month

1%

A330-900neo cost efficiency


Airbus standard economic rules

787 (253t) with GE engines,,

4000nm route, JAR 3%, 200nm diversion,

f uel price 3 US$/Usg

Operating cost

Lease rate

A330-900neo

310 seats

$1.1m /month

40

A330neo deliveries start in December 2017


41

A350 XWB: 786 aircraft to deliver to 41 customers


Orders and deliv eries to December 5th 2014

42

A350 XWB: designed to reduce cash operating costs by 25%


Latest generation Trent XWB

offers up to 10% lower

SFC than the GE-90

Highly tapered planform

Variable camber / Differential flap setting

Optimum fuselage cross-section

Lightweight material airframe

Engines

Aerodynamics

Weight

43

A350-1000: 35 tonnes lighter than the stretched 777-9X


777-300ER 175t OWE

-20t

+15t

A350-1000 155t OWE

Clean sheet design

777-9X

777-300ER 777-9X

5th derivative

• 4-frame stretch

• Frame sculpting

• Bigger wing with folding wings

• Engine upsize

44

A380 takes off or lands every 4 minutes


Orders and deliv eries to end November 2014

147 171


318

45

A380 dominates the very large aircraft market with almost 90% market share


Data to end November 2014

Source: Airbus Orders & Deliveries,

Boeing.com

VIP not included

747-8 42

orders 12%

747-8 5

airlines 21%

Net orders and airlines customers for passenger aircraft

A380

318 orders

88%

A380

19 airlines

79%

46

42 Mega-Cities worldwide


90%+ Of long-haul

traffic on routes

to/from/via 42

cities

Handling more than 10,000 long haul passengers per day

Source: GMF 2013; Cities with more than 10,000 daily passengers, Long haul traffic: flight distance >2,000nm, excl. domestic traffic

47

71 Mega-Cities worldwide by 2023

Source: GMF 2013; Cities with more than 10,000 daily passengers, Long haul traffic: flight distance >2,000nm, excl. domestic traffic


95%+ Of long-haul

traffic on routes

to/from/via 42

cities

Handling more than 10,000 long haul passengers per day

48

Over 70 million passengers have now enjoyed the A380 experience


Data to end August 2014

Revenue flight hours 1,660,000 flight hours in 196,000 revenue flights

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

http://fr0-marvel-p01.eu.airbus.corp:8100/Marvel/livelink.exe/?func=ll&objID=1495833&parentID=3766342&objAction=editimage

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A380 dispatch reliability

95%

96%

96%

97%

97%

98%

98%

99%

99%

2010 2011 2012 2013 2014


2014 y ear to end September

15 minute delay criteria

50

A380 developments have increased market reach


Improved SFC

Trent 900\ GP 7000

Aircraft weight reduction

New Design Weights

payload

+500nm

+8t

Optimised wing twist

-1%

Fuel burn

51

The world’s longest routes are operated with A380


The longest

A380 flights > 16 hours

Los Angeles

Dubai Dallas

Sydney

52

4 new A380 operators in 2014-2015


ASIANA AIRLINES

QATAR AIRWAYS TRANSAERO

ETIHAD

53

Premium A380 cabin experience


54

A380 cabin: 19” wide,10-abreast, seating


55

A380 cabin: Revenue maximisation with 18” wide,11-abreast, seating


56

Undisputed

industry

Flagship The winning combination

Strong market recognition

of complementary roles Single aisle

leader


title of presentation runs here on two lines / arial ... · 29 97t a321neo extends market reach...

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