Airbus Se Unsp/Adr

Ladies and gentlemen, thank you for standing by. Welcome to the Hair Boost final year 2021 results release conference call. I'm Clotilde, the operator for this conference. Please note that for the duration of the presentation, all participants will be on listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. At this time, I would like to turn the conference over to your hosts, Guillaume Faurie, Dominique Assam, and Hélène Legorgeux.

Thank you, Clotilde. And good morning, ladies and gentlemen. This is the ABAS Full Year 2021 Results Release Conference Call. Guillaume Faurie, our CEO, and Dominique Azam, our CFO, will be presenting our results and answering your questions. This call is planned to last around one hour and 15 minutes. This includes Q&A, which we will conduct after the initial presentation. This call is also webcast. It can be accessed via our home page, where we have set a special banner. Playback of this call will be accessible on the website, but there is no dedicated phone replay service. The supporting information package was emailed to you earlier this morning. It includes the slides, which we will now take you through, as well as the financial statements. Throughout this call, we will be making forward-looking statements. The package you receive contains the Safe Harbor Statement, which applies to this call as well. Please read it carefully. And now, over to Guillaume.

Thank you, Hélène, and good morning, ladies and gentlemen. Thank you for joining us today for our full year 2021 results call. I'm happy to be here with Dominique to run you through our results. 2021 has been another challenging year, but it was also a year of transition where our attention shifted from navigating the crisis towards recovery and growth. In the early months of 2021, we still had to demonstrate our resilience in a global context of low air traffic and an overall lack of predictability. We gained visibility as we progressed in the year. We saw that air traffic accelerated quickly once travel restrictions were lifted, starting in key domestic markets, and demonstrating the fundamental need for connecting people and cultures worldwide. This visibility, together with the strengthening of our customers' demands, gave us confidence to set our ramp-up trajectory, engage our supply chain, and launch all necessary actions to prepare for a strong recovery in the single-line market. 2021 has also been a remarkable year for Airbus, thanks to the resilience and efforts of our teams to deliver outstanding industrial, commercial, and financial results. Let's now look at our commercial aircraft deliveries and our financials, both showing that we delivered on the guidance we provided in October. In Q4, we delivered 187 aircraft, taking our full year 21 delivery number to 611, an 8% increase compared to 2020, and in line with our 2021 guidance. I'm proud of this collective achievement by Team Airbus, together with our customers and suppliers. For the full year 21, our EBIT adjusted was 4.9 billion euros, and our free cash flow before M&A and customer financing was 3.5 billion euros. Our strong 2021 financial results, and in some ways they are very strong, reflect the number of commercial aircraft deliveries, the good performance of our divisions, as well as our cost containment and efforts on competitiveness. While carefully managing our cost base for the year, we progressively resume activities to prepare our future, and we will further accelerate in 2022. Our EBIT adjusted also benefited from the reduction of risk exposures, which enabled us to release some provisions. Our record net income of 4.2 billion euros, together with our strengthening net cash position at 7.6 billion euros, and Dominique will comment on both later, They underpin our proposal to reintroduce dividend payments going forward, which will amount to 1.5 euro per share for 2021. Today, as we have entered 2022, the pandemic is not yet fully behind us. We experience additional complexity coming from the global macroeconomic landscape, including tensions on supply, logistics, and labor. Nonetheless, we continue to deliver on our production ramp-up as planned while closely monitoring and managing the associated challenges. Let's now look at our commercial environment. After a sharp decline in 2020 and in spite of the certain challenges in 2021, the global economy rebounded. The air traffic also progressively recovered throughout the year, Even though the crisis is not over yet, the aviation industry continues to emerge from it. It has become clear that people want to fly again, and they do so as soon as travel restrictions are relaxed. Yet, 2021 has also shown that some key markets remain volatile, and the Omicron variant has confirmed once again that the path to full recovery is not linear. These uncertainties are not, today, of the nature to change our expectations that the market will recover between 2023 and 2025, with domestic and regional markets clearly leading the way. This is underpinned by our customers' strong demand for latest-generation fuel-efficient aircraft, which reinforce their competitiveness and lower their fleet emissions. In fact, latest-generation aircraft represent today only around 13% of global fleets, underlining the strong potential of fleet replacement to decarbonize commercial aviation with today's technologies. Let me now remind you of our orders and backlog, which also reflect a strong commercial activity in Q4. For the full year 2021, we booked 771 gross orders. In Q4, we recorded 501 gross orders, including 43 A220s, 46 A320 family aircraft, and 32 white bodies. This includes the first A350 freighter orders, which, together with several commitments, mark an important milestone for this program. I am pleased by this great commercial performance, and we at TABUS appreciate the strong endorsement from our customers we placed new orders for 2021 to answer both passenger and freighter market demands. We saw 264 cancellations in 2021. As a result, net orders were positive at 507 aircraft, and our backlog in units amounted to 7,082 aircraft at the end of 2021. At group level, our backlog in value increased to 398 billion euros in 2021, mainly reflecting the strengthening U.S. dollar. I'd like to say a few words about the situation we are unfortunately experiencing with one of our customers, Qatar Airways. We had to make the decision to exercise our rights and terminate two A350-1000 delivery slots and the A321 contract. This decision followed many attempts to find mutually beneficial solutions, and we continue to hope for an amicable solution. And I'd like to say as well that for us at Airbus, this relationship with our customers is of the utmost importance, and we will continue to work hard to serve them. Looking at helicopters, in 2021, we achieved a record year of booking with booked to be well above 1, which confirms the positive momentum for campaigns in our home countries, as well as the good performance of our support and services business. Over the year, we booked a total of 414 net orders, compared to 268 in 2020. This includes 52 H-160 helicopters, of which the firm order by the French DGA for 30 units of the H-160 military version as the first batch of the light joint helicopter program, which plans for an overall total of 169 units. In addition, we recorded in Q4 an order for 36 H-135 helicopters by the Spanish Ministry of Defense and Interior. Finally, in defense and space, in 2021, order intake was at 13.7 billion euros, up 15% year-on-year, corresponding to a book-to-bill of around 1.3. This commercial performance includes key orders in our military aircraft business, such as two major contracts for the in-service support of the German and Spanish Eurofighter fleets, the Indian order for 56 C-295 to replace the Air Force Legacy fleet, MRTT-related orders from the United Arab Emirates, the UAE, and Spain, as well as the export contract with the Republic of Kazakhstan for 2A400M. In our space systems business, we were granted the contract to design and manufacture six Galileo second-generation satellites. And in 2021, we launched 10 spacecraft and the one-web constellation deployment reached 394 satellites, so close to 400. We received orders for 12 more spacecraft, and importantly, 20 of our satellites are now involved in climate change monitoring, with 20 more in development. For Eurodrone, we welcome the recent budgetary approval by Spain, following that of France, Germany, and Italy. Eurodrone will be the first product to be, from the start, designed and developed through our new digital design manufacturing and service concept. On FCAS, we continue to work with our industrial partners with the objective to move on to the next development phase later in the year. Now, Dominique will take you through our financials.