❌Airbus SE announced the disclosure of its consolidated financial results for 2020/2021
Airbus SE announced the disclosure of its consolidated financial results for 2020 and provided a forecast of targets for 2021.
“The results of 2020 confirm Airbus' strong position in the worst crisis in the air transport industry. I want to thank our team for major achievements this year and acknowledge the special support of the helicopter and space divisions. I would also like to express my gratitude to our customers, suppliers and partners for their loyalty to Airbus, - said Airbus CEO Guillaume Faury, - In 2021, we will face uncertainty as the pandemic continues to affect our lives, economies and societies. We have released a 2021 Target Outlook that reflects our vision in this volatile environment. In the long term, we strive to play a leading role in the sustainable development of the global aerospace industry. ”
The net volume of orders for civil aircraft amounted to 268 units (768 units at the end of 2019), the total order book for civil aircraft at the end of 2020 reached 7,184 units. Net orders for helicopters were 268 units (310 units in 2019), including orders for the delivery of 31 NH90 helicopters for the German Bundeswehr in the fourth quarter of 2020 and 11 H160 helicopters.
Airbus Defense and Space's order book in value terms increased by 39% compared to 2019 to € 11.9 billion. The division's book-to-bill indicator was over 1. The result was facilitated by contracts for military aircraft, including a contract for delivery of 38 Eurofighter aircraft to the German Air Force, signed in November.
Consolidated order volume in 2020 in value terms decreased to € 33.3 billion (€ 81.2 billion in 2019), consolidated order book in value terms amounted to € 373 billion as of December 31, 2020 (€ 471 billion at the end 2019). The decline in value of the order book for civil aircraft in value terms reflects the increased number of deliveries compared to the volume of orders, the depreciation of the dollar and the assessment of the possibility of recovering the growth rate of the order book.
Consolidated revenue fell to € 49.9 billion (€ 70.5 billion in 2019), largely reflecting challenging market conditions affecting commercial aircraft shipments, which were down 34% from 2019. The company delivered 566 commercial aircraft (863 units in 2019) to customers, including 38 A220s, 446 A320s, 19 A330s, 59 A350s and 4 A380s. 225 commercial aircraft were delivered in the fourth quarter of 2020, 89 of which were delivered in December. Airbus Helicopters delivered 300 helicopters (up from 332 in 2019), with revenue growth of about 4% driven by a favorable supply structure and helicopter service contracts. The decrease in revenue of the Airbus Defense and Space division was about 4%: this was facilitated by a smaller volume of orders and the impact of the COVID-19 pandemic on the phasing of projects, mainly in the space systems division.
Consolidated Adjusted EBIT - an alternative performance indicator and a key indicator that reflects the profitability of the core business, excluding significant costs or gains from cash flows in production programs, restructuring or foreign exchange effects, and gains or losses from the sale or acquisition of a business - amounted to € 1,706 million (2019: € 6,946 million), reflecting primarily the decline in the commercial aircraft division, which was partially offset by the strong performance of Airbus Helicopters and Airbus Defense and Space.
Adjusted EBIT of Airbus was € 618 million (2019: € 5,497 million), reflecting primarily a decline in commercial aircraft deliveries and associated lower cost efficiency. The indicator also includes costs associated with the COVID-19 pandemic in the amount of € 1.1 billion. In January 2021, in response to the prevailing market situation, the production schedule was adjusted, which provides for a slower increase in the pace of production.
Adjusted EBIT for the helicopter division rose to € 471 million (€ 422 million in 2019), reflecting primarily strong government support and strong implementation of the production program. The indicator also reflects the reduction in R&D costs associated with the completion of the EASA H160 and five-blade H145 certification.
Defense and Space's adjusted EBIT increased to € 660 million (€ 565 million in 2019), reflecting primarily the company's cost-cutting efforts and lower R&D costs. This figure demonstrates the impact of the COVID-19 pandemic, including on the missile business.
Own R&D costs decreased to € 2,858 million (€ 3,358 million in 2019).
EBIT reported at € -510m (2019: € 1,339m), adjusted for € -2,216m.
· Negative effect of € 1,202 million reflecting the company's restructuring plan;
Expenses of € 385 million for the A380 program, including € 27 million in the fourth quarter of 2020;
· A negative effect of € 480 million due to fluctuations in the US dollar exchange rate and revaluation of the carrying amount, including € 106 million in the fourth quarter;
· Negative impact of € 149 million related to other expenses, including compliance, including € 21 million in the fourth quarter.
Consolidated net losses were € 1,133 million (2019 net loss: € 1,362 million). The financial result was € -620 million (2019: € -275 million). This metric reflected a change in interest rate calculation standards of € 271 million, a revaluation of the returnable start-up investment (RLI) of € -157 million, and a net loss of € 149 million from Dassault Aviation's financial assets. The metric also takes into account loan losses for OneWeb in the first quarter of 2020. Consolidated losses per share were € -1.45 (losses per share
€ -1.75 in 2019).
The consolidated free cash flow before taking into account the effects of mergers and acquisitions was € -6,935 million (2019: € 3,509 million). The indicator reflected the cost of paying compliance penalties of € -3.6 billion in the first quarter of 2020. Q4 2020 consolidated free cash flow before mergers and acquisitions was € 4.9 billion, reflecting strong Q4 2020 shipments, strong performance by Airbus Helicopters and Airbus Defense and Space and a greater focus on working capital management.
Amid the crisis caused by the COVID-19 pandemic, the company has taken a number of measures to secure a strong liquidity position, including the opening of a new line of credit of € 15 billion. Thanks to the high credit rating, the company was able to limit the cost of interest on the credit line to € 0.4 billion per year and expand funding sources through the issuance of bonds.
Capital expenditures in 2020 amounted to about € 1.8 billion, (€ 0.6 billion less compared to 2019), due to the prioritization of projects. Consolidated free cash flow was € -7,362 (2019: € 3,475 million). The net cash position at 31 December 2020 was € 4.3 billion (end-2019: € 12.5 billion). The gross cash balance was € 21.4 billion (end-2019: € 22.7 billion).
Given the situation in the global market, the company decided not to pay dividends for 2020. This decision is aimed at strengthening Airbus' financial strength - protecting the company's net cash position and the ability to adapt as the situation develops.
Airbus's projections for 2021 are based on the premise that the global economy, air traffic and operations will not experience further disruptions that could affect the ability to provide products and services.
Airbus' 2021 profit and cash flow forecast before mergers and acquisitions are:
· Maintaining the volume of deliveries of commercial aircraft at the level of 2020;
· Adjusted EBIT of around € 2 billion;
· Free cash flow before taking into account the effects of mergers and acquisitions and customer financing will remain at breakeven level.