Airbus reports strong Full-Year (FY) 2021 results

Highlights:

* 611 commercial aircraft delivered in 2021

* Financials reflect strong operational performance group-wide

* Revenues EUR 52.1 billion; EBIT Adjusted EUR 4.9 billion; EBIT (reported) EUR 5.3 billion

* Free cash flow before M&A and customer financing EUR 3.5 billion; Net cash EUR 7.6 billion

* Record net income of EUR 4.2 billion; EPS (reported) EUR 5.36

* Dividend proposal: EUR 1.50 per share

* 2022 guidance issued

Amsterdam - Airbus SE (stock exchange symbol: AIR) reported consolidated Full-Year (FY) 2021 financial results and provided guidance for 2022.

'2021 was a year of transition, where our attention shifted from navigating the pandemic towards recovery and growth. Thanks to the resilience and efforts of our teams, customers and suppliers, we delivered remarkable full-year results,' said Guillaume Faury, Airbus Chief Executive Officer. 'The strong financials reflect the higher number of commercial aircraft deliveries, the good performance of our Helicopters and Defence and Space businesses as well as our efforts on cost containment and competitiveness. Record net income and our efforts to strengthen the net cash position underpin our proposal to reintroduce dividend payments going forward. At the same time, we continue to invest in our strategic priorities and in the transformation of our company.'

Gross commercial aircraft orders totalled 771 (2020: 383 aircraft) with net orders of 507 aircraft after cancellations (2020: 268 aircraft). Included were the first A350 freighter orders, confirming customer demand for this new programme. The order backlog was 7,082 commercial aircraft on 31 December 2021 (end 2020: 7,184 aircraft). Airbus Helicopters booked 414 net orders (2020: 268 units), achieving a book-to-bill ratio well above 1 both in terms of units and in value. These included 52 H160s of which 30 were the first batch of H160M military versions for France's Joint Light Helicopter programme. Airbus Defence and Space's order intake by value increased to EUR 13.7 billion (2020: EUR 11.9 billion), representing a book-to-bill ratio of around 1.3. Included were key orders in the Military Aircraft business such as the in-service support of the German and Spanish Eurofighter fleets as well as good export momentum for the C295, A330 MRTT and A400M airlifter.

Consolidated order intake by value increased to EUR 62.0 billion (2020: EUR 33.3 billion) with the consolidated order book valued at EUR 398 billion on 31 December 2021 (year-end 2020: EUR 373 billion). The increase in the backlog value mainly reflected the strengthening US dollar.

Consolidated revenues increased 4 percent to EUR 52.1 billion (2020: EUR 49.9 billion), mainly reflecting the higher number of commercial aircraft deliveries, partially offset by less favourable foreign exchange rates. A total of 611 commercial aircraft were delivered (2020: 566 aircraft), comprising 50 A220s, 483 A320 Family, 18 A330s(1), 55 A350s and 5 A380s. Revenues generated by Airbus' commercial aircraft activities increased 6 percent, largely reflecting the higher deliveries compared to 2020. Airbus Helicopters delivered 338 units (2020: 300 units), including the first H160, with revenues rising 4 percent reflecting growth in services and the higher deliveries. Revenues at Airbus Defence and Space decreased by 2 percent, mainly driven by Military Aircraft, partially offset by Space Systems. Eight A400M aircraft were delivered in 2021.

Consolidated EBIT Adjusted - an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses - was EUR 4,865 million (2020: EUR 1,706 million).

The EBIT Adjusted related to Airbus' commercial aircraft activities increased to EUR 3,570 million (2020: EUR 618 million), mainly driven by the delivery performance and efforts on cost containment and competitiveness.

Commercial aircraft production is progressing in line with previously announced plans, in a complex environment. Specifically on the A320 Family, the ramp-up is on trajectory to achieve rate 65 by summer 2023 and the Company continues to de-risk notably by enabling all assembly sites to become A321-ready. For A320 Family production rates beyond 2023, the Company is still in the assessment phase and working with suppliers to potentially enable an increase above rate 65.

Airbus Helicopters' EBIT Adjusted increased to EUR 535 million (2020: EUR 471 million), mainly driven by support and services, programme execution and cost focus.

EBIT Adjusted at Airbus Defence and Space increased to EUR 696 million (2020: EUR 660 million), reflecting continued cost containment.

On the A400M programme, development activities continued toward achieving the revised capability roadmap. Retrofit activities are progressing in close alignment with the customer. In the fourth quarter of 2021, a charge of EUR 0.2 billion was recorded mainly reflecting the updated estimates of the delivery pattern of the launch contract. This is reflected in EBIT reported.

Consolidated self-financed R&D expenses totalled EUR 2,746 million (2020: EUR 2,858 million).

Consolidated EBIT (reported) amounted to EUR 5,342 million (2020: EUR -510 million), including net Adjustments of EUR +477 million.

These Adjustments comprised:

EUR +274 million related to the A380 programme, of which EUR +84 million were in Q4;

EUR +122 million gain from the sale of one site in France, recorded in Q4;

EUR -212 million related to the A400M, of which EUR -209 million were in Q4;

EUR -38 million negative impact from foreign exchange and balance sheet revaluation, of which EUR +127 million were in Q4;

EUR +331 million of other Adjustments including mainly around EUR 0.2 billion of provision release related to the restructuring plan, and payments by suppliers. EUR +285 million were booked in Q4.

The financial result was EUR -315 million (2020: EUR -620 million). It mainly reflects the net interest result of EUR -246 million as well as the revaluation of financial instruments and of certain equity investments. Consolidated net income(2) was EUR 4,213 million (2020 net loss: EUR -1,133 million) with consolidated reported earnings per share of EUR 5.36 (2020 loss per share: EUR -1.45).

Consolidated free cash flow before M&A and customer financing was EUR 3,515 million (2020: EUR -6,935 million), reflecting efforts on cash containment and a decrease in working capital, mainly driven by inventory improvement. Consolidated free cash flow was EUR 3,511 million (2020: EUR -7,362 million).

On 31 December 2021, the gross cash position stood at EUR 22.7 billion (year-end 2020: EUR 21.4 billion) with a consolidated net cash position of EUR 7.6 billion (year-end 2020: EUR 4.3 billion). The Company's liquidity position remains strong, standing at EUR 28.7 billion at the end of 2021.

The Board of Directors will propose the payment of a 2021 dividend of EUR 1.50 per share to the 2022 Annual General Meeting. The payment date is 21 April 2022.

Outlook

As the basis for its 2022 guidance, the Company assumes no further disruptions to the world economy, air traffic, the Company's internal operations, and its ability to deliver products and services.

The Company's 2022 guidance is before M&A.

On that basis, the Company targets to achieve in 2022 around:

720 commercial aircraft deliveries;

EBIT Adjusted of EUR 5.5 billion;

Free Cash Flow before M&A and Customer Financing of EUR 3.5 billion.

Note to editors: Live Webcast of the Analyst Conference Call and Annual Press Conference

At 07:30 CET on 17 February 2022, you can listen to the FY 2021 Results Analyst Conference Call with Chief Executive Officer Guillaume Faury and Chief Financial Officer Dominik Asam via the Airbus website https://www.airbus.com. The analyst call presentation can also be found on the website. A recording will be made available in due course. For a reconciliation of Airbus' KPIs to 'reported IFRS' please refer to the analyst presentation.

The Annual Press Conference on the 2021 Results starts at 09:15 CET on 17 February 2022 and is also webcast live via the Airbus website.Consolidated Airbus - Full-Year (FY) 2021 Results (Amounts in Euro)

Footnotes:

Two A330s delivered on operating lease without revenue recognition at delivery.

Airbus SE continues to use the term Net Income/Loss. It is identical to Profit/Loss for the period attributable to equity owners of the parent as defined by IFRS Rules.

To be proposed to the Annual General Meeting on 12 April 2022.

Safe Harbour Statement:

This press release 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 Airbus' businesses;

Significant disruptions in air travel (including as a result of the spread of disease or 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;

Changes in societal expectations and regulatory requirements about climate change;

The full impact of the COVID-19 pandemic and the resulting health and economic crisis.

As a result, Airbus SE's actual results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For more information about the impact of the COVID-19 pandemic, see Note 2 'Impact of the COVID-19 pandemic' of the Notes to the Airbus SE Unaudited Condensed IFRS Consolidated Financial Statements published 17 February 2022. For more information about factors that could cause future results to differ from such forward-looking statements, see Airbus SE's annual reports, including its Universal Registration Document and the most recent Risk Factors. Any forward-looking statement contained in this press release speaks as of the date of this press release. Airbus SE undertakes no obligation to publicly revise or update any forward-looking statements in light of new information, future events or otherwise.

Rounding

Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

See full release at: https://www.airbus.com/en/newsroom/press-releases/2022-02-airbus-reports-strong-full-year-fy-2021-results

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