Airbus Se Unsp/Adr

Ladies and gentlemen, thank you for standing by. Welcome to the Airbus Half Year 2023 Results Release Conference Call. I am Sharon, the operator for this conference. Please note that for the duration of the presentation, all participants will be in a 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, Gianfori Saviatardi and Hélène

Thank you very much, Sharon, and good evening, ladies and gentlemen. This is the Airbus ASEO 2023 Results Release Conference Call. Guillaume Faury, our CEO, and Xavier Tardy, our Interim CFO, will be presenting our results and answering your questions. This call is planned to last around an hour. This includes Q&A, which we will conduct after the presentation. This call is also webcast. It can be accessed via our homepage by clicking on the dedicated banner. Playback of this call will be accessible on our website, but there is no dedicated phone replay service. The supporting information package was published on our website earlier today. 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, I invite you to refer to our safe harbor statement that appears in the presentation slide, which applies to this call as well. Please read it carefully. And now over to you, Guillaume.

Thank you, Hélène. And hello, ladies and gentlemen, and thank you for joining us today for our H1 2023 results call. We're connecting from Amsterdam and with Xavier and Hélène. Let me start by saying that I was very happy to see many of you not that long ago at the Paris Airshow or just before. And that was the first Paris Airshow after four years. Indeed, beyond the commercial success, I have to say it was a great Le Bourget. Being able to meet customers, suppliers, partners, officials, and all the people that make our industry one of the most advanced, the most innovative and exciting there is was just fantastic. We've all come out very energized from that week. For me personally, it confirmed again the value of bringing people together in person and why aviation is so important. The event was also the occasion to share with you the latest insights of our ramp up and the status of our supply chain during the Airbus business update. In summary, we continue to execute on our plan in an environment that remains complex. The overall geopolitical and macroeconomic situation remains volatile. And on the supply side, our deliveries continue to be paced by a few critical suppliers. On the topic of suppliers, I'd like to address the announcements from RTX yesterday about the new issue affecting the Pratt & Whitney 1100 engines, the engines that power the A320neo. We are, of course, aware and very much aware of the topic. We are working with Pratt & Whitney and our customers to best understand and assist with the implementation of all required inspection plans and minimize the disruption to the fleet of our customers. Pratt & Whitney informed us that it affects parts produced between Q4 2015 to Q3 2021, and it does not impact engines currently being produced or the ones that are being in the production flow for the planes which are currently being produced. So we do not expect any impact on ongoing deliveries of our planes. Talking about deliveries, in H1 we delivered 316 commercial aircrafts in line with our plan. This is reflected in our H1 2023 financial results with an EBIT adjusted standing at €2.6 billion and a free cash flow before M&M customer financing at €1.6 billion. And on that basis, we maintain our 2023 guidance. Let's now look at our commercial environments. Air traffic continued to grow in Q2 with domestic traffic now fully recovered and even exceeding pre-pandemic levels in many regions. International traffic is close to or above pre-pandemic levels in most regions with traffic to and from China and Asia Pacific progressively catching up, but not yet at pre-pandemic levels. In this context, And as reported during the latest IATA AGM, the airline industry is expected to return to profitability in 2023. We observe strong demand for aircraft, driven both by growth and fleet replacement as airlines turn to more fuel-efficient aircraft to achieve their sustainability ambitions. This good momentum was on full display at Le Bourget we announced more than 600 orders and commitments, including two large orders for a total of 750 aircraft. This order intake also includes 85 for our wide-body aircraft. Overall in H1, we booked a total of 1,080 gross orders and recorded 36 cancellations as a result Net orders were positive at 1,044 aircraft and our backlog in units reached a record level of 7,967 aircraft, so almost 8,000 aircraft at the end of June 2023, including 6,740 A320 family aircraft. In H1, we booked 131 net orders versus the 163 in H1 2022. These orders being well spread across programs, including 19 H160s. In this quarter, we signed a firm contract with Air Corporate for 40 light helicopters and three ACH 160s, Corporate 160s. In addition, the H160 received its FAA type certificate in June, marking a significant milestone for the program and enabling us to deliver to the US customers and serving this market. The H160 has previously entered service in Japan, Brazil, Saudi Arabia, and Europe. Overall, we continue to see positive momentum in home countries for both civil and military markets. Finally, in defense and space. On orders, we continue to see a good momentum, especially in our military assistance business. Overall, our order intake was $6 billion in H1. It includes the order by the Government of Canada for four newly built and five converted A330 MRTT aircraft, strengthening Canada's defense capabilities. In July, we signed a contract contract renewal with Germany for the A400M in-service support with a duration of 7.5 years, showing the long-term commitment of Germany to the A400M. In our space business, the Airbus-built Arabsat-Bader-8 telecommunication satellite was successfully launched end of May, featuring Airbus Innovative Optical Communications Payload . In July, Ariane 5 has successfully completed its final flight, the 117th of a series which started in 1996, placing into orbit two satellites, including the Airbus and Thales Alenia-built Syracuse 4B communications satellite. The priority is obviously now in completing the development and qualification of Ariane 6 and securing its successful ramp-up. On FCAS, France, Germany, and Spain are now fully engaged to successfully execute what we call a phase 1B, while Belgium has joined as an observer, adding to Europe's commitment to stronger strategic autonomy, defense, and security. And before we move to financials, I'd like to mention the transformation that we've initiated in this division earlier this year, aiming at making our business simpler, more agile more competitive and more customer oriented we've just reached an important milestone with the start of consultation with our european and national social partners the leadership has also started to communicate with the management this transformation is necessary for the resilience and the competitiveness in this division now xavier will take you through our financials