Airbus Se Unsp/Adr

Ladies and gentlemen, thank you for standing by. Welcome to the Hair Boost Q1 2022 Results Release Conference Call. I am Clotilde, the operator for this conference. Please note that for the duration of the presentation, all participants will be on a listen-only mode, and afterwards there will be a question-and-answer session. The conference is being recorded. After the presentation, you will have the opportunity to ask a question. At this time, I would like to turn the conference over to your host,

Thank you and good evening ladies and gentlemen and thank you for joining us today for our Q1 2022 results call. I'm indeed with Dominique and Hélène here in Amsterdam to run you through our Q1 results. First, as I just said in the media call, I want to repeat that our thoughts are with all people affected by the humanitarian crisis settled by the attack on Ukraine, with massive casualties and millions fleeing from their homes. At Airbus, our top priority has been, as always, and remains, to safeguard people and operations. Besides, in line with international sanctions, we suspended deliveries and support services to Russian customers and operators, as well as the supply of spare parts to the country. for all our activities across all divisions, we are applying and will continue to apply the sanctions which are in place. The ongoing military conflict reminds our societies that peace, democracy and freedom can never be taken for granted, but need to be earned and need to be defended. We expect to face additional complexity as we progress in 2022, not only resulting from the geopolitical tensions, but also from increasing impacts on global supply and logistics, and in particular in the context of the new COVID wave in China. That being said, in Q1, we were able to deliver 142 aircraft, sorry, a plus 14% year-on-year increase. Commercial aircraft production ramp-up is progressing in these complex environments, Following an analysis of global customer demands, as well as an assessment of the industrial ecosystem's readiness, we are now working with our industry partners to increase the F320 family production rates further to 75 aircraft a month in 2025. Now, back to the first quarter, our solid financial results benefited from the effort on competitiveness, as well as the impact from cost containment implemented throughout the COVID crisis, which we will progressively phase out as we have resumed activities. Our EBIT adjusted stood at 1.3 billion euros and our free cash flow before M&A and customer financing was 4.2 billion euros. Our solid Q1 EBIT adjusted further includes a non-recurring positive element 0.4 billion euros related to retirement obligations, partly offset by 0.2 billion euros negative impacts from the international sanctions against Russia. During today's call, Dominique and I will update you on how we are impacted by the more complex and anticipated business environment. When it comes to the impact from the international sanctions, our direct exposure to Russian customers is relatively limited, across our product portfolio. And on the supply side, we see that our operations are protected over the short and medium term. This gives us the time to secure alternative solutions where needed. Nevertheless, given the increasing complexity of the environment, notably the worsening COVID situation in China, we will continue to closely monitor the risk we are exposed to, especially supply and labor, as well as the associated inflationary pressures. Based on our good Q1 results in Q1, we keep our guidance for 2022 unchanged. Also, our overall risk profile for the remainder of the year has become more challenging. Let's now look at our commercial environment. As I said, we are operating in a complex environment, in fact in global economy recovery. and we see a contrasted picture when it comes to the evolution of global air traffic. In China, domestic air travel has essentially deteriorated sharply and is currently around 20 to 30% of its pre-COVID level in flight numbers. The degradation of the COVID situation in the country is a concern. In the short term, this may start to impact the ability of some of our airline's customers to take delivery of some of the aircraft. Moreover, the geopolitical crisis is adding complexity. Even though airspace restrictions in Russia, Belarus, and Ukraine itself affect a small portion of global traffic, the rerouting of international flights, as well as increasing fuel prices, have become a headwind for a number of our airline customers. In contrast, air travel is coming back strongly. and between all countries where travel restrictions have been lifted. This confirms robust underlying air travel demands. Even though the global situation is contracted for the quarters to come, we still expect commercial air traffic to recover to pre-COVID levels between 2023 and 2025, with domestic and regional markets leading the way. So no change at that front. in spite of the complexity. Let me remind you of our orders and backlog into one. We booked 253 gross orders, of which 243 single I and 10 widebodies, confirming our strong commercial momentum. Seven out of the 10 widebodies orders were for our recently launched A350 freighter. We saw 170 cancellations, which were already largely anticipated and embedded in our backlog valuation as of end of the year 2021. As a result, net orders were positive at 83 aircraft and our backlog in units amounted to 7,023 aircraft at the end of March 2022, including 5,821 A320 family aircraft. With regard to Russia, our backlog includes 13 A350 orders Looking at helicopters, in the first quarter we booked 56 net orders compared to 40 in Q1 last year, well spread across programs. We were also awarded by OCAR an order for the Tiger M3 program for 42 helicopters for France and 18 for Spain. In addition, we continue to see positive momentum for campaigns mainly in our home countries. Finally, in defense and space, in Q1, our order intake was at 3.2 billion euros, corresponding to a book-to-read of around 1.3. It includes the Eurodrone global contract signed in February, covering the development and manufacturing of 20 systems and five years of initial in-service support for Germany, France, Italy, and Spain. This signature kicks off the development of one of the most ambitious European defence programmes, which will be entirely designed and developed from the start with our DDMS. Your role, the result of collaborative work between the industry, OCR and the nations, will strengthen Europe's strategic autonomy and sovereignty with this programme. booked in the quarter relate mainly to military aircraft. On the FCAS, the Future Combat Air System, we are fully committed to the program, the importance of which is acutely evident in times of crisis. We continue to work towards launching Phase 1D later this year, which is the next milestone for the success of this crucial European defense program. On the space business, we are closely monitoring the situation on all programs conducted in cooperation with the Russian State Space Agency, together with our partners, customers, and suppliers. Let me remind you that we no longer have access to the Soyuz launchers. In the meantime, preparation of 2022 IN-5 and Vega-C launches are progressing according to plan and schedule. While we are on the topic of space, I want to thank the teams for the historical agreement signed between Arianespace and Amazon in April for 18 Arian6 launches over a period of three years, which illustrates the great potential of this platform. In the context of rising defense spending and a strong drive for European strategic autonomy, we stand ready to support the European governments in this respect. Dominique, we take you from our financial committee.

Thank you, Guillaume, and hello, everyone, also from my side. Our Q1 2022 revenues increased to €12.0 billion, up 15% year-on-year, mainly reflecting the higher number of commercial aircraft deliveries and a favorable mix. Our Q1 EBIT adjusted increased to €1.3 billion, up from €0.7 billion in Q1 2021. The total €0.6 billion increase includes a non-recurring positive element of €0.4 billion related to the remeasurement of past service costs in our retirement obligation. On the other hand, an amount of minus €0.2 billion has been recorded in Q1, resulting from the impact of international sanctions against Russia, and it also reflects our effort on competitiveness and the impact from cost containment implemented throughout the COVID-19 crisis. Our Q1 EPS adjusted stood at 1 euro 14 cents per share, based on an average 786 million shares. Our Q1 free cash flow before M&A and customer financing was 0.2 billion euros, reflecting the level of deliveries, competitiveness, and impact of cost containment, partly offset by an increase in working capital, mainly driven by inventory increases. On to the next slide regarding our profitability in more detail. Q1 2022 EBIT reported was 1.4 billion euros. The level of EBIT adjustments totaled a net positive of 0.2 billion, including 190 million positive impact from foreign exchange mismatch and balance sheet revaluation, minus 11 million related to the A380 program, and minus 13 million of other costs, including compliance costs. Earnings per share reported includes 160 million positive financial results. It mainly reflects the positive net impact from the revaluation of certain equity investments, partially offset by the revaluation of financial instruments, as well as minus 76 million euros of net interest results. The tax rate on the core business is around 27%. The effective tax rate on an income is 25%, including the tax effect on the revaluation of certain equity investments, partially offset by deferred tax asset net income is €1.2 billion with earnings per share reported of €1.55. All in all, we were off to a very good start for the fiscal year 2022. Regarding our hedging activities, in Q1 2022, $4.4 billion of hedges matured with associated EBIT impact at a rate of 1.21 versus 1.16 in Q1 2021. During the quarter, we implemented $2.5 billion of rollovers, mainly to adjust the 2022 intra-year phasing of our hedges. We also implemented $3.5 billion of forwards at a rate of $1.18, mainly for the years 2024 and 2025. $4.3 billion of hedges were disqualified to reflect the impact of the international sanctions against Russia, resulting in a negative impact to financial results. As a result, our total hedging portfolio in US dollar stands at $87.1 billion with an average hedge rate of 125 unchanged versus December 2021. Now let's look at our cash evolution in Q1 2022. Our gross cash flow operations of 1.2 billion euros mainly reflect our evident justice as well as positive phasing of tax payments. The working capital increase of €0.7 billion mainly reflects inventory bills to support the A320 family ramp-up, partially offset by favorable timing of cash receipts and payments. Yesterday, the A400M continued to waive on our free cash flow before M&A to customer financing. Q1 2022 CapEx was around minus €0.3 billion versus €0.5 billion in Q1 2021. Recall that The prime year's quarter included the acquisition of real estate assets in the UK. We expect our capex to be around minus 2.4 billion euros in 2022. Free cash flow reported was 0.2 billion euros. M&A activities accounted for minus 6 million euros, while customer financing represented an outflow of minus 46 million euros. The aircraft financing environment remains solid, with sufficient liquidity in financial markets for our product Going forward, the further cash in, as in recent years, will not be sustainable, as we anticipate some usage of cash in this and the coming years. Our net cash position is stable at 7.7 billion euros, and of end of March, and our liquidity position remains strong and stood at 28.8 billion euros. In Q1 2022, Moody's and S&P both confirmed adverse credit ratings to respectively A2 and A-flat, and removed the negative outlook reflecting our strong financial and operational performance. Going forward, we will continue to adopt an effective approach when it comes to managing our liquidity with the objective of maintaining our robust credit ratings. Now back to you.