airbus commercial updatecompany.airbus.com/dam/assets/airbusgroup/int/en/investor...powerplant...

Global Investor Forum 2012

Airbus Commercial update

John LeahyChief Operating Officer – Customers


Safe Harbour StatementDisclaimer

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.


15,500aircraft flying

80,000 flights

Aviation’s daily production

2011 : Figures rounded, source Airbus, ICAO

10 millionseats offered

3 billion passengers per year


A typical day

3 billion annual passengers divided by 364 days.

2011 London population from Office of National statistics

8.204million people in London

8.242million people in the sky


Air transport growth is highest in expanding regions

Billions of people will increasingly want to travel by airSource: IHS Global Insight, Airbus

ChinaIndia

Middle EastAsiaAfrica

CISLatin America

Eastern EuropeExp

andi

ng re

gion

s

Western EuropeNorth AmericaJapan

Yearly RPK growth2012 -2031

1billion

people2012

6billionpeople2012


A two-speed world since 2000

* 54 emerging economies. Data Sources: IHS Global Insight, Airbus

History Forecast

Emerging economies*

Mature economies

Real GDP growth (%)


* since 2000

+53%*

World traffic has continued to post strong growth

Despite economic uncertaintiesSource: ICAO, Airbus

World annual traffic (RPKs - trillions)

Gul

f Cris

is

Oil

Cris

is

Asi

an C

risis

WTC

Atta

ck

Oil

Cris

is

SAR

S

Fina

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is


Airbus and Boeing world market share at end 2011

Airbus market share boosted by A320neo launch

Boeing81%

Airbus19%

Boeing36%

Airbus64%


Airbus and Boeing world market share in 2012

Preliminary end November 2012 status

Boeing81%

Airbus19%

Boeing64%

Airbus36%


2011 - 2012 gross market share


4329 industryorders

$506.9 bnindustry


Firm order backlog


8,792firm orders


Aviation is a cyclic industry

Number of jet aircraft (>100 seats)

Orders


Aviation is a cyclic industry

1960 to 2004: Close relationship between order and delivery cycle


OrdersDeliveries Orders

Deliveries


Aviation is a cyclic industry, but the cycle changed in 2005

1960 to 2004: Close relationship between order and delivery cycle2004 onwards: Cycles disconnected. Deliveries have not kept track with orders


OrdersDeliveries Orders

Deliveries


Airbus deliveries and backlog comparison

1990 – 2004 backlog to delivery averages 5 : 12005 onwards: deliveries not increased with orders

Source: Airbus

Annual deliveries Airbus backlog(scale 5x deliveries)

Backlog to Delivery = 5 : 1

Backlog to Delivery = 7.5 : 1


Boeing deliveries and backlog comparison

1990 – 2004 backlog to delivery averages 3.3 : 12005 onwards: deliveries not increased with orders

Source: Airbus

Annual deliveries Boeing backlog(scale 3.3x deliveries)




Airbus deliveries

Largest aircraft manufacturer for the last 9 yearsSource: Airbus

Annual deliveries


Airbus has 7 years of production to deliver

Combined order backlog of 8,792 aircraftPreliminary end November 2012 status

AirbusA320ceo 1,883A320neo 1,579A330/A340 316A350 XWB 562A380 165

4,505

Boeing737NG 2,050737 MAX 969767/777 388787 804747 76

4,287


A320 Family

A take-off or landing every 2.5 seconds, with 99.6% reliabilityPreliminary end November 2012 status

8,811 firm orders5,349 deliveries3,462 firm order backlog (1,883 ceo, 1,579 neo)


Firm order backlog – single aisle


6,481firm orders


1st delivery with Sharklets to in December 2012


Strong airline endorsement of Sharklets

Over 1,100 aircraft ordered with SharkletsAt end November 2012

42Customers worldwide


A320 Family orders and commitments

A320ceo backlog of 1,883 aircraft220 A320ceo sales in 2012


* Audited orders and firm commitments

2013 to 2017 A320 Family aircraft

Rate 42~2,000 aircraft 400+ aircraft


A320neo Family has achieved worldwide success

Firm orders from 31 customersData to 30h November 2012. Includes 64 aircraft for an undisclosed customer

30

10080

6040

45

33

2220

30

30

150

20072

85

12

30

10

1579

8

78

30

50

5030

36

100

4

10

20

10

40


Firm order backlog – NEO leads MAX


2,548firm orders


A320neo is on schedule to deliver 15% fuel savings

First deliveries of A320neo in October 2015


A320neo offers environmental benefits

• Annual fuel savings of 15% equate to:1.4 m litres of fuel: the consumption of 1000 mid size cars

• 3,600 tonnes of CO2the CO2 absorption of 240,000 trees

• NOx emissions 50% below CAEP/6

• 500nm more range or 2 tonnes more payload

• Aircraft noise up to 15dB below Stage IV

Significant environmental improvements


-3.3% 10% 99.57%


737-100/-200

Original 737 design with low bypass engine & minimum ground height737 now compromised by ground clearance

Fan diameter 54”


Greater ground clearance allows for bigger fan diameter

Today’s A320 is more fuel efficient than the 737NG

Fan diameter 61” Fan diameter 68”

737NG CFM56-7B

A320CFM56-5B


By-pass ratio is growing

By-pass ratio is a key driver for fuel efficiency

Fuel efficiencyEmissionsNoise

Fuel efficiencyEmissionsNoise

By-pass ratio

737 ‘Classic’

A320767

A330

737NG

787

A350 XWB

CSeries A320neo

737 MAX777-300ER


A320neo fuel burn savings rationale800nm sector

Thanks to Sharklets A320neo delivers full SFC benefitNominal performance Standard profile and weights.

*fan area LEAP-1A versus CFM56-5B

Drawings not made to scale

EngineSFC -15.3 %

+1%Fuel burn savings ofA320neo LEAP-1A

Improved core

~7%

+32% more fan area*

~7%

Powerplant integration ~1%Sharklets -2.4% - Extra MWE 1.9t

- Drag+2.7%

-15.0% A320neo versus A320

Reference A320 CFM


737 MAX fuel burn savings rationale800nm sector (Airbus View)

737 constraints limit the benefits from new engine*with winglets and 7BE improvement. 737

** fan area LEAP-1B versus CFM56-7B

Drawings not made to scale

+1%

Improved core

-7%

Reference 737NG

+28% more fan area**

-5%

Powerplant integration -0.5%

EngineSFC -12.5%

-Extra MWE >2.5t -Drag+3.5%

aero improvements -1%

-10% 737 MAX versus 737NG*

Fuel burn savings of737 MAX


A320ceo/A320neo market potential

A market for 15,000 A320 Family aircraft over 20 years2012 Airbus Global Market Forecast

Single-aisle aircraft in-service

Open Demand

Backlog

15,000aircraft

4,500aircraft

Currently in-service


A330 Family

A take-off or landing every 25 seconds, with 99.0% reliabilityTo end November 2012

1,241 firm orders927 deliveries314 backlog


800 A330s sold since 787 launch

Net orders as of end November 2012


175 new A330 sales since January 2011

Data to end November 2012

Firm orders


The latest A330-300s can serve many more markets

6,100nm range with 242t MTOW A330-300242t A330-300 in typical 2 class layout, 95kg pax, JAR 3% profile, LRC, 200nm diversion

LONDON


300-seater cash operating cost comparison

Pax weight = 95kg, JAR 3% flight profile, LRC, 200nm diversion. 2000nm trip., $2.50/USg

Typical 2 class layout with 36 B class, A330-300: 300 pax, 777-200ER: 302pax, , 787-9: 304 pax,

Cash Operating Cost per seat

Seats 300 302 304

Datum

-6%

+17%


300-seater direct operating cost comparison

Rentals are published IBA lease ratesComparison per seat at 2000nm., $2.50/Usg

Typical 2 class layout with 36 B class, A330-300: 300 pax, 777-200ER: 302pax, 787-9: 304 pax (9 abreast Y/C seating),

+11%+7%

Direct Operating Cost per seat(including capital cost)

Used

Seats 300 302 304Monthly rental $900,000 $875,000 $1,250,000

Datum


A330-300 comparison with the 787-10X

Comparison per seat at 2000nm., $2.50/Usg

Typical 2 class layout with 36 B/C, A330-300: 300 pax, 787-9: 304 pax, 787-10X 352 pax, with 9 abreast Economy seating

Different markets

A330-300

Different sizes

787-9

50+ seats

787-10X(9 abreast)

Seats: 300 304

352

Direct Operating Costs(including capital costs)

+17% 787-10X

0%

Lease $900,000 $1,450,000Rate


A350 XWB

To end November 2012

562 firm orders34 customers

562 backlog


A350 XWB – greater range and compelling economics

A step ahead of the 787, a generation beyond the 777

Airbus

A350-800

A350-900

A350-1000

Boeing

One New Family oftechnically superior aircraft

777

787

Two aircraft typesa generation apart



Comparison per seat at 4000nm, $2.50/Usg

Typical 2 class layout with 48 B class, A350-900: 315 pax, Airbus estimate: 787-10X: 331 seats at 9 abreast

Same markets

Similar sizes

(Long-haul: 48 business configuration)

A350-900

787-10X (9 abreast)

+16

315 seats

+3%

787-10X

-2%

Cash Operating Costs

331 seats



Same markets

Similar sizes Direct Operating Costs(including capital costs )

+4.5%

787-10X

-0.5%

(Long-haul: 48 business configuration)

+4%

A350-900

787-10X (9 abreast)

+16

315 seats

Lease $1,350,000 $1,450,000Rate (per month)

331 seats

Comparison per seat at 4000nm, $2.50/Usg

Typical 2 class layout with 48 B class, A350-900: 315 pax, Airbus estimate: 787-10X: 331 seats at 9 abreast


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

A350-900 capability versus 787-10X

A350-900’s capability offers more revenue potentialTypical 2-class configurations, typical airline flight profile and reserves

* Airbus estimate

+1,600 nm range

A350-900

+16t cargo

Payload (kg)

315 passengers + baggage

787-10X

331* pax & bags

Range (nm)


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

A350-1000 capability versus 777-300ER

The A350-1000 consistently outperforms the 777-300ER

350 passengers + baggage

777-300ER

365 pax & bags+600 nm range

Range (nm)

Typical 3-class configurations, typical airline flight profile and reserves

A350-1000Payload (kg)


A380

A take-off or landing every 6 minutes98.3% operational reliability

OR data last 25 aircraft, June 2012

Other data at end November 2012

257 firm orders20 customers

165 backlog


Five years ago...

“The A380 has exceeded all expectations, delivered on its promise of reliability and fuel efficiency and is a favourite with customers.”

Courtesy of airliners.net

Chew Choon Seng, SIA Chief Executive OfficerSingapore Airlines Press Release, 25 Oct 2008


Singapore Airlines A380 cabin Innovation in all classes

Cabin pictures: courtesy Singapore Airlines

471 seats (12 First, 60 Business, 399 Economy class)

“Our A380 fleet has been a perennial customer favourite and will continue to play a significant role in our network.”

Mr Mak Swee Wah , Executive Vice-President Commercial, Singapore Airlines Press Release, 25 October 2012


A mark of outstanding quality

“The economics are fantastic. It has given us a huge advantage because the seat-mile costs are much lower than on any other aircraft”.

“Load factor on the A380 grew 3% and yield is 3% higher compared to a 747 flyingon a different day. The four weekly A380 service to HKG for example seeing trafficmoving (to the A380)”.

Maurice Flanagan, EVC Emirates ,June 22 2010


A very high quality travel experience previously associated only with private jets.”Sheik Ahmed bin Saeed Al-Maktoum,

Chairman and Chief Executive Emirates

Emirates A380 cabin: innovative on-board amenities

Cabin pictures: www.Emirates.com

489 seats (14 First, 76 Business, 399 Economy class)

Two large shower spa facilities, Spacious lounge area, Direct UD boarding from airport Premium Class lounge

http://www.emirates.com/


92 A380s have been delivered

Singapore Airlines took delivery of the 80th A380 on 31st July 2012At end November 2012


Nine airlines now operate the A380

Carrying more passengers in more comfort to more and more destinationsIn-service fleet as of 29th November 2012

19 A380 28 A38012 A380

8 A380

10 A380 5 A380

4 A380 4 A380 2 A380


The A380 network as of October 201273 routes - 32 airports

Additional airline-announced routes for 2012-13 shown dotted

Thai AirwaysAir FranceQantas

China SouthernEmiratesKorean AirSingapore Airlines

Miami

Lufthansa

Malaysia Airlines

Los Angeles

Auckland

Johannesburg

Jeddah

ManchesterMontrealParis

Melbourne

Washington DCNew York Tokyo

Dubai

BeijingZurich

RomeMunichToronto

Sydney

Houston

London

Kuala Lumpur

Amsterdam

Frankfurt

Singapore

Atlanta

Seoul

ShanghaiHong Kong

San Francisco

Bangkok

Moscow

Guangzhou


A380 fleet operations five years on...

• 80,000 revenue flights

• 125 flights per day carrying 1.25 million passengers per month

• Airlines fly their A380s 13.3 hours per day

• 98.3% operational reliability

As of 1st October 2012

30 million passengers have enjoyed the A380 experience


The A380 is the new flagship

12 of the top 20 international carriers ordered 218 out of 257 A380s* - Includes wholly owned subsidiaries Austrian, bmi, Swiss

A380 customers

International RPKs, IATA carriers 2011 (000s)


The A380 is the market’s VLA of choice

Only four airlines have ordered the 747-8

Cumulative net orders for passenger aircraft only

0

50

100

150

200

250

300

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

32 orders 4 airlines

256 orders 19 airlines

19 airlines


2011 cities with more than 10,000 daily long-haul passengers

42 cities in the world handle more than 10,000 long haul passengers per day, …

Long-haul traffic is concentrated on a few main aviation centresTraffic as of month of September

Long haul traffic: flight distance >2,000nm, excl. domestic traffic;

42Aviation

Megacities(2011)

> 90%of long haul traffic

on routes to/from/via42 cities


… and by 2031 it will be over 90

Long-haul traffic is concentrated on a few main aviation centresTraffic as of month of September. Source: Airbus

Long haul traffic: flight distance >2,000nm, excl. domestic traffic;

> 95%of long-haul traffic

on routes to/from/via92 cities

92Aviation

Mega-cities(2031)

2031 cities with more than 10,000 daily long-haul passengers


© AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. This document and all information contained herein is the sole property of AIRBUS S.A.S. No intellectual property rights are granted by thedelivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of AIRBUS S.A.S. This document and its content shall not beused for any purpose other than that for which it is supplied. The statements made herein do not constitute an offer. They are based on the mentioned assumptions and are expressed in good faith. Where the supportinggrounds for these statements are not shown, AIRBUS S.A.S. will be pleased to explain the basis thereof.AIRBUS, its logo, A300, A310, A318, A319, A320, A321, A330, A340, A350, A380, A400M are registered trademarks.

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