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FLYING
EFFICIENTLY
2014
ANNUAL REVIEW

Table of contents

  • Page 1
    2014 ANNUAL REVIEW FLYING EFFICIENTLY

  • Page 2
    ...Chief Financial Officer 36 - Share Information 37 - Shareholder Information 38 - Interview with the Chief Strategy and Marketing Officer 40 - Market Trends 03 BUSINESS EFFICIENCY 46 - Airbus 50 - Airbus Helicopters 54 - Airbus Defence and Space 58 - Engaged People 59 - Supply Chain 60 - Innovation...

  • Page 3
    ...Space. Combining European heritage with global outreach, the diversity of our talented workforce drives innovation, performance and internationalisation. We had a very strong operational performance Tom Enders, Airbus Group CEO Annual Press Conference 2015 Visit our dedicated web page: www.reports...

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    01

  • Page 5
    ... world's most efficient products. At the same time, the company is optimising its operational efficiency to help drive its financial performance. Over the following pages we highlight key achievements from 2014 that are the result of close teamwork. Airbus Group is developing high quality solutions...

  • Page 6
    04

  • Page 7
    ... THE SUCCESSFUL CULMINATION OF A MAJOR TEAM EFFORT INVOLVING THOUSANDS OF EMPLOYEES, ON 22 DECEMBER 2014 AIRBUS DELIVERED THE FIRST A350 XWB TO LAUNCH CUSTOMER QATAR AIRWAYS. This followed one of the aviation industry's most thorough and efficient certification flight test programmes ever...

  • Page 8
    ...WANT MORE EFFICIENCY. PASSENGERS WANT MORE COMFORT. ECONOMIC ACTIVITY IN DEVELOPING COUNTRIES IS ALSO CREATING NEW MAJOR TRAFFIC FLOWS. THESE INSIGHTS HAVE DRIVEN THE DEVELOPMENT OF THE A350 XWB, WITH THE GOAL OF PRODUCING AN AIRCRAFT THAT SETS NEW STANDARDS IN TERMS OF PASSENGER EXPERIENCE AND COST...

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    07

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    08

  • Page 11
    ... PERFORMANCE, INCREASED SAFETY AND UNMATCHED COST EFFICIENCY, AIRBUS HELICOPTERS DELIVERED THE FIRST NEW GENERATION H175 (FORMERLY EC175) HELICOPTER TO AVIATION SERVICES COMPANY NHV IN DECEMBER 2014. The helicopter was destined to be used in core applications that Airbus Helicopters specifically...

  • Page 12
    ... IT COMPLIES WITH THE LATEST AIRWORTHINESS STANDARDS, COVERING BOTH THE HELICOPTER AND ITS AVIONICS SUITE. THIS PROVIDES INCREASED SAFETY THROUGH REDUCED PILOT WORKLOAD, IMPROVED FLIGHT ENVELOPE PROTECTION AND ENHANCED SITUATIONAL AWARENESS. CUSTOMERS HAD AN ACTIVE ROLE IN THE H175'S DESIGN THROUGH...

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    11

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    12

  • Page 15
    GIVING CUSTOMERS THE COMPETITIVE EDGE ENGINEERS AT AIRBUS DEFENCE AND SPACE ARE PIONEERING THE USE OF ALL-ELECTRIC PROPULSION FOR LARGE SATELLITES TO PROVIDE OPERATORS WITH EVER MORE EFFICIENT SOLUTIONS. In 2014, the Division achieved significant success in this emerging market segment, with notable...

  • Page 16
    ... & SMARTER EUROSTAR, THE AIRBUS DEFENCE AND SPACE FLAGSHIP PRODUCT FOR TELECOMMUNICATIONS SATELLITES, HAS BEATEN ALL IN-ORBIT RELIABILITY AND LONGEVITY RECORDS. THE NEWEST E3000e VERSION USES MASS-SAVING ELECTRIC PROPULSION FOR ALL IN-ORBIT MANÅ'UVRES, MEANING LOWER LAUNCH COST AND/OR MORE ROOM FOR...

  • Page 17
    SES-12 15

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    02

  • Page 19
    ... Officer's Interview 26 - Board of Directors 28 - Group Executive Committee 30 - Management Structure 32 - Interview with the Chief Financial Officer 36 - Share Information 37 - Shareholder Information 38 - Interview with the Chief Strategy and Marketing Officer 40 - Market Trends PILOTING A350...

  • Page 20
    ANNUAL REVIEW 2014 KEY FIGURES 2014 ORDER INTAKE(1) ORDER BOOK(1) â,¬ 166.4 bn 02 PILOTING EFFICIENCY â,¬ 857.5 bn 2013 2013 â,¬ 216.4 bn - 23% â,¬ 680.6 bn + 26% REVENUES EBIT* â,¬ 60.7 bn 2013 â,¬ 4.0 bn + 5% 2013 â,¬ 57.6 bn â,¬ 2.6 bn + 54% NET INCOME(2) NET CASH POSITION â,¬...

  • Page 21
    ...bill ratio above 2. PROFITABILITY While Group revenues increased 5%, the reported EBIT* increased 54%, reflecting a solid underlying performance. Net income and earnings per share also increased strongly. 02 PILOTING EFFICIENCY EARNINGS PER SHARE(2) DIVIDEND PER SHARE(3) â,¬ 2.99 2013 â,¬ 1.20...

  • Page 22
    ... EFFICIENCY In 2014, the Board of Directors monitored the technical and commercial progress of key programmes, such as the A350 XWB, A400M, A380 and Super Puma. During two off-site Important milestones achieved in our business- Board meetings, at Airbus Helicopters in es show that management...

  • Page 23
    ...no longer be combined with the demands of being an Airbus Group Board member. His proposed successor, Ms Amparo Moraleda, has all the right qualities in terms of industrial know-how and international experience to enrich the existing Board and make a vigorous personal contribution. I look forward to...

  • Page 24
    ANNUAL REVIEW 2014 ONE JOURNEY ONE TEAM INTERVIEW WITH TOM ENDERS CHIEF EXECUTIVE OFFICER 02 PILOTING EFFICIENCY W hen you look back on 2014, what comes to your mind? Well, what comes to my mind first of all is that 2014 was not a business-asusual year for the Group. It was the first year that ...

  • Page 25
    ... need to do this not only for financial reasons, but because we know how much our military customers depend on the airlifting capabilities of this new generation aircraft. 2014 will be remembered as yet another record year for the Group 02 PILOTING EFFICIENCY Tom Enders Chief Executive Officer 23

  • Page 26
    ...of our list is on-time, on-cost and on-quality programme execution Tom Enders Chief Executive Officer What does all this mean to your financial performance then? Are you satisfied with last year's financial results? All in all, in 2014 we've increased revenues, profitability and cash flow, which...

  • Page 27
    ... CORPORATE CITIZENSHIP AND RESPONSIBILITY Strengthen company's position as a trusted partner with all stakeholders, in home countries and globally. TEAM AIRBUS Drive Group-wide, Divisional and team level actions to improve employee engagement over the next two years, thereby increasing performance...

  • Page 28
    ... positions in industrial companies and related non-profit organisations. TOM ENDERS (56) Chief Executive Officer of Airbus Group Mr Enders chairs the Airbus Group Executive Committee, he answers to the Board of Directors, of which he is the only executive member, for delivering Group performance...

  • Page 29
    ...Former Member of the Management Boards of EADS and of Northrop Grumman Mr Crosby has had thirty years of executive experience in the international aerospace and defence industry, including general management of major defence and commercial businesses for EADS and Northrop Grumman Corporation. JOSEP...

  • Page 30
    ...IT, and initiatives in cyber security, quality, programme management and manufacturing tools for the Company's future. 02 01 02 03 04 05 06 THIERRY BARIL Airbus Group & Airbus Chief Human Resources Officer 03 BERNHARD GERWERT 04 Airbus Defence and Space Chief Executive Officer Mr Gerwert...

  • Page 31
    ... to the Board of Directors, of which he is the only executive member, for delivering Group performance and executing its strategy. Mr Wilhelm's mission is to ensure the financial performance of Airbus Group, its funding and the customers' financing, to manage investor relations, to manage risks and...

  • Page 32
    ANNUAL REVIEW 2014 AIRBUS GROUP MANAGEMENT STRUCTURE AIRBUS As of 1 April 2015 Fabrice Brégier (CEO) BOARD OF DIRECTORS Thierry Baril John Leahy Denis Ranque (Chairman) Klaus Richter Harald Wilhelm DIVISIONS Tom Enders (CEO) Tom Williams 02 PILOTING EFFICIENCY Manfred Bischoff Ralph D. ...

  • Page 33
    ... CHIEF HUMAN RESOURCES OFFICER Pierre de Bausset Thierry Baril CORPORATE AUDIT 02 PILOTING EFFICIENCY CHIEF TECHNICAL OFFICER Grazia Vittadini Jean Botti CHIEF COMPLIANCE OFFICER CHIEF PROCUREMENT OFFICER Pedro Montoya Klaus Richter LEGAL DEPARTMENT Peter Kleinschmidt AIRBUS GROUP...

  • Page 34
    ... REVIEW 2014 IMPROVING RETURNS INTERVIEW WITH HARALD WILHELM CHIEF FINANCIAL OFFICER 02 PILOTING EFFICIENCY J What kind of impact should we be expecting from those divestments? Well, for 2014 you already saw some cash impact. The figure includes close to â,¬800 million from the sale of a part...

  • Page 35
    ANNUAL REVIEW 2014 I believe we have the ingredients for strong growth Harald Wilhelm Chief Financial Officer 02 PILOTING EFFICIENCY CONSISTENT GROWTH IN ORDER BOOK Order Book by Activity (in â,¬ bn) Order Book by Region 900 800 700 600 500 857.5 680.6 566.5 815.3 900 800 700 600 500 19% 31%...

  • Page 36
    ...2015 and 2016. 02 PILOTING EFFICIENCY CONSISTENT GROWTH IN GROUP REVENUES Revenue Growth (in â,¬ bn) 70 60 50 40 30 20 10 70 Revenues by Division 56 58 61 60 50 40 21% 68% 44 47 50 30 20 10 10% 1% Airbus Airbus Defence and Space Airbus Helicopters Others 12 0 11 2013* 11 0 2012 2014...

  • Page 37
    ANNUAL REVIEW 2014 GROUP REVENUES BY REGION 16% 33% 11% 8% TOTAL 32% â,¬ 61 bn Europe Asia-Pacific North America Middle East Africa / Central and South America 02 PILOTING EFFICIENCY What about the other businesses? To start with the Helicopters business: we've seen a slower commercial ...

  • Page 38
    ANNUAL REVIEW 2014 SHARE INFORMATION Capital Structure As of 31 December 2014 Base 100 as of 2 January 2012 SHARE PRICE EVOLUTION As of 31 December 2014 Airbus Group share price in â,¬ 11% 250 2012 2013 2014 60 74% 11% 02 PILOTING EFFICIENCY 200 50 40 150 4% 100 30 Free Float* ...

  • Page 39
    ... HALF YEAR 2015 RESULTS RELEASE Investor Relations and Financial Communication contact details Toll-free telephone numbers France: 0 800 01 2001 Germany: 00 800 00 02 2002 Spain: 00 800 00 02 2002 International number: + 33 800 01 2001 E-mail: [email protected] iPad Application: Airbus Group Investors...

  • Page 40
    ANNUAL REVIEW 2014 STRATEGY IN ACTION INTERVIEW WITH MARWAN LAHOUD CHIEF STRATEGY AND MARKETING OFFICER 02 PILOTING EFFICIENCY I n 2013, Airbus Group revised its strategy and announced a reorganisation of its defence and space businesses. What progress has been made since? A lot, I can tell you....

  • Page 41
    ... in terms of international sales? As I mentioned before, it was an outstanding year for commercial aircraft orders. As well as in the Asia-Pacific region, we saw strong demand in North America and Europe. If I were to highlight a specific contract, I might choose Delta's order of 25 A350 XWB...

  • Page 42
    ... and more seats in 2014, lifting aircraft manufacturers' order books to record levels. In its Global Market Forecast, Airbus predicts that air traffic will grow at an average rate of 4.7% annually over the next 20 years (2014-2033), generating demand for more than 31,000 new passenger 02 - A350 XWB...

  • Page 43
    ..., Airbus World annual traffic * Revenue Passenger Kilometres. Source: ICAO, Airbus. ** Since 2000 GLOBAL DEFENCE EXPENDITURE 2014 US$ 1,597 BILLION REVENUES FROM COMMERCIAL ACTORS OF THE GLOBAL SPACE ECONOMY 2013 US$ 256.2 BILLION 9% 38% 26% 15% 4% 4% 3% 1% 58% 33% 9% North America Asia...

  • Page 44
    ... to Frost, global border security investment however will grow at over 7% with investment likely to increase in big data analytics, Internet of Things technologies and integrated security solutions. Concerns over Russian actions in Eastern Europe have led many countries in the region to reverse...

  • Page 45
    ...in January 2015 an available annual budget of â,¬4.43 billion. This represents an increase of 8% on the 2014 figure. technologies such as reusable launchers. It has also announced plans to enter the satellite market, creating a fleet of several thousand satellites for a global Internet service. In...

  • Page 46
    03

  • Page 47
    PART 03 EFFICIENCY 46 - Airbus 50 - Airbus Helicopters 54 - Airbus Defence and Space 58 - Engaged People 59 - Supply Chain 60 - Innovation 62 - Photo Contest 63 - Addresses BUSINESS H225

  • Page 48
    03 BUSINESS EFFICIENCY ANNUAL REVIEW 2014 46

  • Page 49
    ... BY PROGRAMME 03 BUSINESS EFFICIENCY 17% 78% 5% Single aisle A330 and A350 XWB A380 www.airbus.com ORDER BOOK BY REGION(1) (IN UNITS) EXTERNAL REVENUES BY ACTIVITY (PLATFORMS/SERVICES SPLIT) 12% Lessor 20% 17% 7% 1% 5% 27% 96% 4% (1) Does not include orders from undisclosed customers 6,386...

  • Page 50
    ... versions. • Deliver extended range A330 242 tonne to first customers. 03 BUSINESS EFFICIENCY The teams in Airbus not only delivered on, but exceeded their targets Fabrice Brégier Airbus Chief Executive Officer 2014 also saw the launch of the A330neo, incorporating the latest generation engines...

  • Page 51
    ... in 2014 (13 net). The backlog at year end stood at 165 aircraft. CONTINUED SERVICES EXPANSION Airbus continued to expand its services business. Several initiatives were announced in the Asia Pacific region, the fastest-growing aviation market. Airbus and its Satair subsidiary opened Satair Airbus...

  • Page 52
    03 BUSINESS EFFICIENCY ANNUAL REVIEW 2014 50

  • Page 53
    ... new products to market, an unprecedented number, boosting the competitiveness of its helicopter range. New product development cleared the way for a 2015 maiden flight of the next-generation H160 rotorcraft. â,¬ 0.4 bn EXTERNAL REVENUES BY ACTIVITY (CIVIL/DEFENCE SPLIT) 03 BUSINESS EFFICIENCY 52...

  • Page 54
    ...Latin America, transactions announced in Chile at the International Air & Space Fair FIDAE 2014 underscored Airbus Helicopters' strong regional presence. 03 BUSINESS EFFICIENCY 2015 will mark the second step in our company's transformation Guillaume Faury Airbus Helicopters Chief Executive Officer...

  • Page 55
    ... Super Puma H225 was launched during 2014 and is due to enter service in 2016. Responding to operators' requirements, it offers improved performance and range, advanced avionics and enhanced cabin design. TRANSFORMING THE COMPANY Airbus Helicopters' transformation plan was on track at the end...

  • Page 56
    03 BUSINESS EFFICIENCY ANNUAL REVIEW 2014 54

  • Page 57
    ...the Airbus Safran Launchers joint venture. â,¬ 0.4 bn REVENUES BY BUSINESS LINES 03 BUSINESS EFFICIENCY 18% 40% 31% 11% www.airbusdefenceandspace.com MILITARY AIRCRAFT ORDER BOOK BY REGION(1) (IN UNITS) Military Aircraft Space Systems Communications, Intelligence & Security Electronics REVENUES...

  • Page 58
    ... observation satellites, of which six will be recognised in the order book later. 56 03 BUSINESS EFFICIENCY 2014 turned out to be positive overall with a strong year for space systems and good future prospects for our core business Bernhard Gerwert Airbus Defence and Space Chief Executive Officer...

  • Page 59
    ... eight more C295 aircraft. Globally, Airbus Defence and Space obtained an 85% market share in the Light and Medium transport segment in 2014. A400M production advanced. Germany, Turkey and the United Kingdom took delivery of their first aircraft in 2014. By the end of 2014, 10 A400M aircraft had...

  • Page 60
    ANNUAL REVIEW 2014 ENGAGED PEOPLE EMPLOYEE ENGAGEMENT IS A TOP PRIORITY FOR AIRBUS GROUP 03 BUSINESS EFFICIENCY A HIGHLY SKILLED WORKFORCE Airbus Group's success is founded on its highly skilled and engaged workforce. Ensuring that the workforce continues to have the right set of competences for ...

  • Page 61
    ... by systems and equipment with 16% and structure and airframes with 14%. Over the past years, Airbus Group has continued to increase the volume of its dollar procurement as part of its strategy of reducing exchange rate risk. In 2014, 53% of external sourcing turnover was booked in US dollars (2013...

  • Page 62
    ANNUAL REVIEW 2014 INNOVATION RESEARCH IS A KEY DRIVER OF THE GROUP'S LONG TERM SUCCESS HIGH-SPEED CONCEPTS The vision of high-speed, low emissions transport remains a long-term goal for the company. The Group is working with international research organisations to evaluate potentially ground-...

  • Page 63
    ... cost. 03 BUSINESS EFFICIENCY INDUSTRIAL PROCESSES Energy-saving initiatives are being introduced across manufacturing sites, backed by certified environmental management systems. In 2014, ISO50001 certification was awarded to the Airbus Helicopters plant in Albacete and Airbus Defence and Space...

  • Page 64
    ANNUAL REVIEW 2014 PHOTO CONTEST THROUGH YOUR EYES AMATEUR PHOTOGRAPHY CONTEST Over a one month period ending in March 2015, Airbus Group invited aviation enthusiasts to participate in its second "Through Your Eyes" Photo Contest and show their talents. The winners are Quentin Roux, Jorge Guardia ...

  • Page 65
    ...Tel + 33 5 61 93 33 33 OTHER CORPORATE OFFICES FRANCE 12, rue Pasteur 92150 Suresnes France Tel + 33 1 46 97 30 00 GERMANY 81663 Munich - Germany Tel + 49 89 607 0 SPAIN Avenida de Aragón 404 28022 Madrid - Spain Tel + 34 915 85 70 000 USA Airbus Group, Inc. 2550 Wasser Terrace, Suite 9000 Herndon...

  • Page 66
    ANNUAL REVIEW 2014 THE COMPLETE AIRBUS GROUP 2014 ANNUAL REPORT PACKAGE CONSISTS OF: Airbus Group would like to thank all those who contributed to the making of this Annual Report. www.reports.airbusgroup.com 64

  • Page 67
    ...Eurofighter GmbH © Airbus Defence and Space © Airbus Defence and Space/ Mango Producciones © Airbus Group/Teamfoto Marquardt © Airbus © Airbus Group Innovations © Airbus © Airbus Group/B. Huber © Airbus Defence and Space © Airbus Defence and Space © Airbus Group Innovations © Airbus Group...

  • Page 68
    2014 ANNUAL REVIEW www.airbusgroup.com Airbus Group N.V. Mendelweg 30 2333 CS Leiden The Netherlands Auriga Building 4, rue du Groupe d'Or - BP 90112 31703 Blagnac cedex - France