Eurocopter. Chief Executive Officer Eurocopter Group. Global Investor Forum 15 & 16 December 2011

Transcription

1 Eurocopter Lutz Bertling Chief Executive Officer Eurocopter Group Global Investor Forum 15 & 16 December 2011

2 Safe Harbour Statement 2 Disclaimer 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 it 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 19 April 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.

3 Group Highlights f Eurocopter Flight Path towards Vision 2020 Growth Globalization Services Performance Conclusion

4 Eurocopter offers the most comprehensive product range in the world 4 Helicopter Class & MTOW Civil Helicopters Military Helicopters Light Single 1,5 2,5* AS350 EC120 EC130 AS550 *MTOW - Maximum Take Off Weight (t) Light Twin 2,5 4,0* AS355 EC135 EC145 EC635 AS555 Medium Twin 4,0 8,5* AS365 EC155 EC175 AS565 EC645 UH-72 Lakota Heavy 8,5 11,5* AS332 EC225 Specialized 6,5 11,5* Tiger NH90 Dual strategy: capturing synergies between civil & military products & services as well as critical size/cost advantages in R&D and industrialization

5 Balanced product & service portfolio 5 Balanced portfolio: Cycle resilience Cross synergies (Military platforms derived from Civil h/c) Support of parapublic market development Improved R&D amortization and capex leverage Global presence: DDD Improved access to emerging markets Global backlog distribution increases cycle resilience Low cost regions FX mitigation Service orientation: Additional value creation Growth business - even during downturn - due to service resilience Customer proximity Reference: turnover 2010 in value

6 Impressive growth track record 6 despite recent economic downturn Deliveries (quantity) & Revenues (m ) versus world GDP evolution Strong ramp-up (+89%) and growth (9,6% CAGR) over past years Slight deliveries decrease related to economic downturn 2008/2009 However, steady revenue growth due to increasing weight of Support & Services business Reference: Eurocopter turnover in value, deliveries in units, world GDP in % vs previous year (source: UN CTAD)

7 Maintaining strong leadership position in civil & parapublic p market 7 Worldwide market share in 2010 (deliveries) Civil & Parapublic Market 2010 market = 874 h/c Military Market 2010 market = 532 h/c Eurocopter military portion including NHI shares N 1 helicopter manufacturer in the world N 1 position in civil & parapublic market Strong N 2 in military market, behind the dominant US player Sikorskyk Reference: Deliveries 2010 in units 7

8 Group Highlights f Eurocopter Flight Path towards Vision 2020 Growth Globalization Services Performance Conclusion

9 Eurocopter flight path towards Vision Achievements: Deliveries and revenues nearly doubled since 2004 Strong market leader world wide Global presence in 30 countries Export portion of 67% with global backlog distribution Already 36% services revenues (in 2010) The most comprehensive product range in the world Transformation program SHAPE delivering Future drivers: Sustainable Growth: sales increase [from 4,8 bn (2010) to 9 bn ] through broad product and service upgrade and renewal roadmap, as well as strong innovation initiative Globalization: Capture growing markets Services Expansion: [from 1,7 bn (2010) to 4 bn ] 1) with services order intake at 42% in 2010 already Performance: ambition target of 10% RoS by continuous improvement initiatives 1) assumes also external growth

10 Group Highlights f Eurocopter Flight Path towards Vision 2020 Growth Globalization Services Performance Conclusion

11 Growth (1/4) Over proportional growth of services, ramp-up in medium and heavy 11 Main Revenue increase related to following helicopter segments: Medium, Heavy as well as Services business (in m) Revenues ( m) 1) Organic Growth: Intense innovative edge and new platforms proposal to secure market share in highly competitive medium and heavy sector, to reinforce presence in existing markets and conquer/create new ones Inorganic Growth: Pursue M&A opportunities to foster growth & gain competitive advantage, especially in Services and Support Market (e.g. Vector Aerospace) 1) include Vector Aerospace

12 Growth (2/4) 12 Increasing competition pushes need for product innovation Increasing competition in the volume- and margin- attractive business of Light Twin, Medium and Heavy Agusta Westland now generates significant revenues from its light twin and medium class A109 competing with EC135 / EC145 AW139 & AW189 competing with EC175 Sikorsky increased its market share in the medium and heavy class Upgrade scheduled d on Sikorsky k best selling S92 Aggressive Market Entry Policy of Russian Helicopters in heavy segment competing with Super Puma Reference: Market Share of Civil and Parapublic Segment in units in%

13 Growth (3/4) Strong innovation dynamics in progress 13 Self funded R&D One first flight of a new helicopter of a major upgrade or a demonstrator One first flight of a new helicopter, of a major upgrade or a demonstrator every year decided in 2007, more than doubling the self-funded R&D expenses since mission accomplished so far

14 Growth (4/4) X3, X4, helicopter of the future and more to come 14 X3: High speed hybrid helicopter Helicopter of the Future 232 kts reached in may 2011 X4: Game Changer The most innovative helicopter of the decade Eurocopter s research effort is solely driven to translate innovation into customer value

15 Group Highlights f Eurocopter Flight Path towards Vision 2020 Growth Globalization Services Performance Conclusion

16 Globalization Eurocopter s global presence is a result of various entry strategies 16 Footprint, Citizenship, Value Creation Foreign Domestic EC Kazakhstan South Korea - (KAI - EC) China - (COHC GAMEC) ANAM South Korea - KHP China (AVIC) - EC175 (Z15) Russia (Euromil) - Mi China/Singapure - (Stae/Catic) - EC India - (HAL/MBB) - ALH/Dhruv India VECTRA - 90 ies Malaysia - EAS Poland Heli-Invest Low Indirect export License Proactive internationalisation strategy since early 1960 s Subsidiaries Joint Venture Cooperation/ Partnership Production China - HAMC - Dauphin (Z9) Indonesia - PTDI - Puma/ Super Puma / 1985 South Africa - Denel - Alouette/Puma /1977 Romania - IAR - Puma Indonesia - PTDI - BO India - HAL - Lama/Alouette / 1970 Vector Aerospace 2011 EC Malaysia Simulation Center 2011 Mexico DUMEX ADU 1) EC India 2009 ESEA Thailand (brunch) EC Indonesia Motorflug Germany Mc Alpine 2008 EC Hong Kong EC China South Korea (KHDS) Russia (Eurovertol) EC Malaysia EC Chile Brazil (Helibras) Mexico (EMSA) EC Philippines (EPI) High Multiple foreign market entry strategy, pending on market potential, customer proximity, offset and country preconditions 1) Aircraft Delivery Unit (brunch) Capital Transfer and Participation

17 Globalization Gaining customer proximity through local deployment Operators and about Aircraft In- Service operating in 149 Countries Vector Aerospace Locations Kazakhstan ECKE Truly global company: 30 subsidiaries and participations, serving over 60% our customers and 75% of deliveries outside Europe employees, thereof 32% out of Europe (increasing trend, e.g. Vector Aerospace, DUMEX Mexico, Super Puma FAL Set up Brazil, etc.) Two strategic axes for industrial footprint: Core markets (Europe, North America, Australia) Developing countries (e.g. Indonesia, China) Strong Services & Support Network: Worldwide service network with three distribution hubs: Dallas (U.S.), Paris (France,) Hong Kong (China) 100 MRO centers and 21 training centers worldwide (e.g. in Russia and China created in 2011) Presence in BRIC countries will be reinforced through industrial footprint, engineering activities and continuous development of Services and Support Reference: All values Q3 2011

18 Group Highlights f Eurocopter Flight Path towards Vision 2020 Growth Globalization Services Performance Conclusion

19 Services Developing S&S expertise through customer proximity worldwide 19 MRO 1) objectives: development of existing business, improvement of OTR 2) and TAT 3) on Eurocopter fleet Range of activities: Field / Line Maintenance Repair / reconstruction Spares Repair & overhaul Major Inspection Modifications Technical Assistance New services streams: New services on EC or non EC fleet MRO Strong contributor tib t to Vision 2020 New Services MRO Development of current business: Service Bulletin, Supplement Type Certificate and Kits, as well as Ground Support Equipment and Tools Business Development of new services such as operational data management and System and Software Support New contractual schemes, as Performance Based Contracts Training Sales Enabler M&A objective: to access new MRO* markets, mainly on non-ec fleet Long success logbook: M&A Vector Aerospace (2011) 60% ANAM in Japan (2009) Motorflug in Germany, McAlpine in UK (2008) Purpose of the Training: Increase Safety, Security, Sales Enabler, Customer Proximity to increase fleet availability Types of training: Ab-initio; Type-rating; Typerating; Recurrent Focus on Mission Training In 2010, EC Service & Support revenues were split into: 51% MRO, 36% Spares, 5% Training, 8% others Until 2020, EC will further diversify and expand its S&S offer significantly, especially New Services 1) MRO Maintenance, Repair & Overhaul 2) OTR On Time Request 3) TAT: Turnaround Time ; Reference: 2010 Service & Support revenues

20 Group Highlights f Eurocopter Flight Path towards Vision 2020 Growth Globalization Services Performance Conclusion

21 Performance Transformation program SHAPE is delivering, more to come 21 Shape Transformation Programme, initiated in 2009, delivers tangible improvements: Support cost reduction: eccolean 200m/year achieved Programme Improvements: 372m NH90 1) 2) on track Cash: net cash factor 26 since 2005 Focus on SAVE, so important in crisis times, enabled Eurocopter to keep competitive edge by investing in innovative products, new platforms, organic and inorganic growth. Ensuring sustainability of SAVE: eccolean, NH90 Recover and CHOC 3), focus will be streamlined to IMPROVE and INVEST. Continuous improvement will secure the success of our programmes, introduced through LEAN and Programme Management excellence Continuous improvement is becoming an integral part of Eurocopter s culture 1) NH90 NATO-Helicopter 90 2) C@C Cost at Completion; 3) CHOC - Commercial Helicopters Optimization of Cost

22 Performance - Reaching 10% RoS ambition target, while pursuing innovation- and globalization strategy 22 Preconditions put in place to reach the 10% Return on Sales ambition target: Evolution of Eurocopter RoS (in %) between 2010 and 2016 Benefit from strong organic growth (10% CAGR for next years) complemented with profitable inorganic growth strategy Profit from cost reduction programmes (e.g. eccolean for structure cost) Harvest from Programme Improvement (NH90 Recover, CHOC) Lean initiative across Eurocopter Constant innovation to meet customer needs and deliver on ambitious commitments Convert Customer Proximity into valuable asset Leverage from / Reinforce presence in emerging markets But also to succeed in mitigating macroeconomic risks related to impacts of potential budget shortcuts and public spending constraints of numerous Western European economies, such as UK, Germany, Spain, Italy

23 Group Highlights f Eurocopter Flight Path towards Vision 2020 Growth Globalization Services Performance Conclusion

24 Conclusion 24 Eurocopter s Vision : maintain/strengthen position as N 1 vertical lift solution provider through 3 Strategic Levers: Assure substantial and sustainable profitable growth Emphasize innovation in products and services Reinforce international footprint, especially in developing markets Eurocopter is fully committed and already on a very Eurocopter is fully committed and already on a very successful path to deliver.