Airbus 2015 Annual Report Download - page 105

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 73 l
Management’sDiscussion andAnalysisofFinancial Condition andResultsofOperations
Registration Document 2015
2.
2.1 Operating and Financial Review
2.1.6 Liquidity and Capital Resources
The Group’s objective is to generate sufficient operating cash
flow in order to invest in its growth and future expansion, honour
the Group’s dividend policy and maintain financial flexibility while
retaining its credit rating and competitive access to capital
markets.
The Group defines its consolidated net cash position as the
sum of (i)cash and cash equivalents and (ii)securities, minus
(iii)financing liabilities (all as recorded in the consolidated
statement of financial position). The net cash position as
of 31December 2015 was € 10.0billion (€ 9.1billion as of
31December 2014).
The liquidity is further supported by a € 3.0billion syndicated
back‑up facility, undrawn as of 31December 2015 with no
financial covenants, as well as a Euro medium term note
programme and commercial paper programme. Please refer
to “—2.1.6.3 Consolidated Financing Liabilities” and “Notes to
the IFRS Consolidated Financial Statements — Note34.3: Net
cash — Financing liabilities”. The factors affecting the Group’s
cash position, and consequently its liquidity risk, are discussed
below.
For information on AirbusGroupSE’s credit ratings, please refer
to the “Notes to the IFRS Consolidated Financial Statements —
Note33: Capital management” and to “—2.1.6.1: Cash Flows”.
2.1.6.1 Cash Flows
The Group generally finances its manufacturing activities
and product development programmes, and in particular the
development of new commercial aircraft, through a combination
of flows generated by operating activities, customer advances,
risk‑sharing partnerships with sub‑contractors and European
government refundable advances. In addition, the Group’s
military activities benefit from government‑financed research
and development contracts. If necessary, the Group may raise
funds in the capital markets.
The following table sets forth the variation of the Group’s consolidated net cash position over the periods indicated.
(in €m) 2015 2014 2013
Consolidated net cash position at 1January 9,092 8,454 11,724
Gross cash flow from operations(1) 4,614 5,595 4,143
Changes in other operating assets and liabilities (723) (2,386) (2,091)
Thereof customer financing (150) 108 (319)
Cash used for investing activities(2) (1,066) (1,207) (2,879)
Thereof industrial capital expenditures (2,924) (2,548) (2,918)
Free Cash Flow(3) 2,825 2,002 (827)
Thereof M&A transactions 1,650 893 (16)
Free Cash Flow before acquisitions 1,175 1,109 ( 811)
Cash flow from customer financing (net) (150) 108 (319)
Free Cash Flow before customer financing 2,975 1,894 (508)
Cash distribution to shareholders/ non‑controlling interests (948) (589) (469)
Contribution to plan assets of pension schemes (217) (462) (223)
Changes in capital and non‑controlling interests 195 52 171
Share buyback/ Change in treasury shares (264) 102 (1,915)
Others (680) (467) (7)
Consolidated net cash position as of 31December 10,003 9,092 8,454
(1) Represents cash provided by operating activities, excluding (i)changes in other operating assets and liabilities (working capital), (ii)contribution to plan assets of pension
schemes and (iii)realised foreign exchange results on Treasury swaps (€ 0 in 2013; € ‑187million in 2014, € ‑74million in 2015).
(2) Does not reflect change of securities (net disposal of € 1,267million for 2013; net investment of € ‑2,016million for 2014, net investment of € ‑2,361million for 2015), which are
classified as cash and not as investments solely for the purposes of this net cash presentation. Excluding bank activities.
(3) Does not reflect change of securities, contribution to plan assets of pension schemes and realised foreign exchange results on Treasury swaps. Excluding bank activities.
The net cash position as of 31 December 2015 was
€ 10.0billion, a 10.0% increase from 31December 2014. The
increase primarily reflects the gross cash flow from operations
(€ 4.6billion), partially offset by the cash used for investing
activities (€ ‑1.1billion), the cash distribution to shareholders/
non‑controlling interests (€ ‑0.9billion), the build‑up of other
operating assets and liabilities (€ ‑0.7billion) and the contribution
to plan assets of pension schemes (€ ‑0.2billion).
Gross Cash Flow from Operations
Gross cash flow from operations decreased by 17.5% to
€ 4.6billion for 2015, due to a higher level of cash consumption
under utilisation of loss‑making contract provisions and higher
income tax payments.
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015
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