Global Investor Forum 17 January, 2008

Transcription

1 Eurocopter as it flies ahead Lutz BERTLING President & CEO Global Investor Forum 17 January, 2008 EZ N 19/08 - p1 1

2 Safe Harbor Statement Certain of the statements contained in this document are not historical facts but rather are statements of future expectations and other forward-looking statements that are based on management s beliefs. These statements reflect the Company s views and assumptions as of the date of the statements and involve known and unknown risk and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. When used in this document, words such as anticipate, believe, estimate, expect, may, intend, plan to and project are intended to identify forward-looking statements. Such forward-looking statements include, without limitation, projections for improvements in process and operations, new business opportunities, revenues and revenues growth, operating margin growth, cash flow, deliveries, launches, compliance with delivery schedules, performance against Company targets, new products, current and future markets for the Company products and other trend projections. This forward looking information is based upon a number of assumptions including without limitation: Assumption regarding demand Current and future markets for the Company s products and services Internal performance including the ability to successfully integrate EADS activities to control costs and maintain quality Customer financing Customer, supplier and subcontractor performance or contract negotiations Favourable outcomes of certain pending sales campaigns Forward looking statements are subject to uncertainty and actual future results and trends may differ materially depending on variety of factors including without limitation: General economic and labour conditions, including in particular economic conditions in Europe and North America, Legal, financial and governmental risk related to international transactions The Cyclical nature of some of the Company s businesses Volatility of the market for certain products and services Product performance risks Collective bargaining labour disputes Factors that result in significant and prolonged disruption to air travel world-wide The outcome of political and legal processes, including uncertainty regarding government funding of certain programs Consolidation among competitors in the aerospace industry The cost of developing, and the commercial success of new products Exchange rate and interest rate spread fluctuations between the Euro and the U.S. dollar and other currencies Legal proceeding and other economic, political and technological risk and uncertainties The Company disclaims any intention or obligation to update these forward-looking statements. Consequently the Company is not responsible for any consequences from using any of the below statements. Additional information regarding these factors is contained in the Company s registration document dated 25th April EZ N 19/08 - p2 2

3 Outline Eurocopter : lead the market Eurocopter s challenges Eurocopter s perspectives and roadmap EZ N 19/08 - p3 3

4 Eurocopter : lead the market Bn 5 4 Annual Revenues 3,2 3,8 > 4,2 4, Ramping up to reach more than 4,0 bn consolidated Turnover (>80% since 2001) With a strong backlog of around 13 bn the growth should continue beyond the end of the decade EZ N 19/08 - p4 4

5 Eurocopter : lead the market 8% 3% Revenue by activity 33% 56% Serial Customer Support Development Airbus/Other others 32% Export Domestic 49% Civil 51% Military 68% Eurocopter is globally a well balanced company : its strategy is to stand solidly on two pillars, military and civil, to rely on diversified export markets and to grow services business at a quicker path than its global revenues; Eurocopter is somehow the role model for EADS vision 2020 : globalized, dual and services oriented EZ N 19/08 - p5 5

6 Eurocopter : lead the market Annual Serial Deliveries (in units) % Helicopters delivered in 2007 including 9 NH90 and 10 Tiger EZ N 19/08 - p6 6

7 Eurocopter : lead the market Annual Series Aircraft Order Intake (in units) EZ N 19/08 - p By booking 4,8 bn of new serial orders, Eurocopter largely protected its market shares; altogether the order intake, including services, es, exceeds 6 bn 7

8 Eurocopter : lead the market Military EC 725 Dual = two markets addressed with a unique modular product line NH90 Heavy AS532 TIGER Combat AS565 EC145 Medium EC135 Light Twin Civil EC 225 AS332 Heavy AS332 AS350 Light Single EC N Medium EC145 Eurocopter disposes of the largest and most modern product line in the industry a valuable asset in a phase of market boom EC135 Light Twin AS355 EC130 AS350 Light Single EC EZ N 19/08 - p8 8

9 Eurocopter : lead the market Strong European roots Germany Kassel Donauwörth Ottobrunn France La Courneuve Marignane Spain Madrid Albacete European Cooperations In a single sourcing approach, Eurocopter has deployed an optimized and highly performing industrial tool EZ N 19/08 - p9 9

10 Eurocopter : lead the market but increasingly a globally implemented company new new new new Eurocopter is deploying its network all over the globe in all areas of the value chain in order to assure customer proximity, access to emerging markets and to low cost or $ zone manufacturing sources EZ N 19/08 - p10 10

11 Eurocopter : lead the market Military Civil Units Units EZ N 19/08 - p11 65% % % % % % ,5% 427 Global market 13,9% 327 7,8% ,5% 8,0% 453 EC marketshare ,3% Global Market EC Share % Registred Deliveries (units) Bell 20,3% AW 13,2% MIL-KAM-KAZ 11% Sikorsky 9,6% MDHI Russian 1,7% 0,7% Others 4% AW 6% Others 1,8% With a strong ramp-up, Eurocopter has been able to consolidate its market shares in a booming market Known Bookings (units) EC 8% EC 52,8% Preliminary numbers NHI NHI 8% 8 % BELL 6% SIKORSKY 53% BOEING (booking of a huge US 4% multi-annual contract) Preliminary numbers 11

12 Eurocopter : lead the market Globally promising situation : constant strong growth over the past 10 years continuing growth perspective assured by backlog modern innovative product line, constantly updated entry of new products at beginning of next decade start of NH90 deliveries with a long term delivery perspective market demand expected to stabilize on high level over next years good positioning of Eurocopter in emerging growth markets extended services offer provides growth potential Eurocopter is well positioned on a healthy and growing market EZ N 19/08 - p12 12

13 Outline Eurocopter : lead the market Eurocopter s challenges Eurocopter s perspectives and roadmap EZ N 19/08 - p13 13

14 Eurocopter s challenges Despite good basics, Eurocopter is facing a number of challenges : industrial ramp-up US dollar exposure mastering of the NH90 fleet renewal in front of competition solid setting of services growth EZ N 19/08 - p14 14

15 Eurocopter s challenges Industrial Ramp-up In terms of industrial output, Eurocopter has been able to assure 75 % of increase in a 4 years period. Given the order book volume, a further industrial output increase can reach 50 % before the end of the decade. In order to achieve this challenging increase, Eurocopter is restructuring its supply network : from 2600 suppliers to 300 first tier suppliers in the coming decade streamlining its internal industrial organization : MoB implementation increasing flexibility and accelerating dramatically cycle times focus on core : adapt internal and external supply sources and assure operational excellence in the internal core activities EZ N 19/08 - p15 15

16 Eurocopter s challenges US dollar exposure Exposure level and hedging principles Eurocopter sales in US dollar represent ~ 25% of its total revenues (>1bn $) Half of gross exposure is naturally hedged Eurocopter s financial hedging policy minimizes the impact of US dollar variations for a 18 months horizon Natural hedging Increase of natural hedging is a top priority in Eurocopter s procurement policy Actions are being implemented to boost natural hedging at Group level Globally, Eurocopter is mastering the US dollar challenge in the 1,45 to 1,5 range; competitiveness seems to be assured through technology advantage EZ N 19/08 - p16 16

17 Eurocopter s challenges NH90 : the program Contracts In force Variants in Force In Force + Options + Intentions NH90 is the state of the art in rotary wing and mission systems technology : Based on the cooperation of 4 initial nations 2 basic variants : TTH (Tactical Transport Helicopter) and NFH (NATO Frigate Helicopter) derived into 23 variants High number of developed variants assures outstanding export competitiveness Common logistics and training Italy 116 H/C 2 variants 196 H/C France H/C 2 variants 160 H/C Germany 122 H/C 2 variants 219 H/C Netherlands 20 H/C 1 variant 20 H/C Portugal 10 H/C 1 variant 10 H/C Belgium 8 H/C 2 variants 10 H/C Spain 45 H/C 1 variant 45 H/C Greece 20 H/C 2 variants 34 H/C Finland 20 H/C 1 variant 20 H/C Sweden 18 H/C 4 variants 25 H/C Norway 14 H/C 2 variants 24 H/C Oman 20 H/C 1 variant 20 H/C Australia 46 H/C 1 variant 58 H/C New Zealand 9 H/C 1 variant 9 H/C Total H/C 23 variants 850 H/C The state of the art aircraft system matching like no other helicopter the global market expectations 507 firm orders with another 350 options to be added with high probability EZ N 19/08 - p17 17

18 Eurocopter s challenges NH90 : the program Contractual /industrial complexity States agencies & forces States Inter-governmental Organization Inter-industrial Organization IT NL FR GE NAHEMA NHI Non optimized international program management org. Industrial Companies (OEMs) Fok AGW EC (F) EC (D) National/international Suppliers EZ N 19/08 - p18 NH90 is facing challenges generated by its complexity Industrial partnership setup and associated Program control Program organization leading to acceptance and qualification processes complexity Contracts handling by our Customers: slow approach to qualification Number of variants, in particular due to early export contracts Technical issues on NFH version In 2007, NH90 has steeply accelerated its development/delivery pace : 4 qualifications in deliveries to 4 countries from 3 FAL Entry into service in 2 countries, and start of operational Customer support. 18

19 Eurocopter s challenges NH90 : the program Well structured and monitored re-organization process launched in 2007 : Addresses all program dimensions Implying all partners/authorities under Eurocopter leadership OBJECTIVES LEVEL 3: Operational efficiency Optimize processes to secure qualification and industrial ramp-up Redefine, optimize and execute core processes in and across functions LEVEL 2: Anticipation, and management OTD OTQ OTC Build, ensure and cascade commitments Create transparency and manage risks on cost, quality and schedule Drive full end-to-end configuration management (from "As sold" to "As support") Manage communication, decision making and escalation Prioritize and accelerate selected existing critical activities LEVEL 1: Program organization and governance Reorganize Eurocopter set-up Reorganize Program Governance (NHI/PCs, NAHEMA/NADs) Secure full support for the restructuring concept Make it lean/simple to manage and with clear priorities within EC Establish sound environment: at NHI/PCs level with NAHEMA/NADs Validate restructuring concept with key shareholders EZ N 19/08 - p19 Simplification, clear attribution of responsibility, responsiveness The new management organization of the program will assure reliability and bring the program back on track 19

20 Eurocopter s challenges Eurocopter s main challenges are under control : the steep industrial ramp up has been mastered and the production output has been almost doubled without disruption Further growth is programmed with adapted accompanying measures in the supply network and in the industrial set-up US dollar exposure is limited and is confined through financial and, in particular, natural hedging NH90 delays and delivery difficulties are clearly understood and corresponding counter-measures are progressing EZ N 19/08 - p20 20

21 Outline Eurocopter : lead the market Eurocopter s challenges Eurocopter s perspectives and roadmap EZ N 19/08 - p21 21

22 Eurocopter s perspectives and roadmap Eurocopter s Vision : maintain/strengthen position as N 1 vertical lift solution provider 3 Strategic Levers : assure substantial and sustainable profitable growth implement globalized supply footprint emphasize innovation in products and services EZ N 19/08 - p22 22

23 Eurocopter s perspectives and roadmap Profitable Growth drivers Eurocopter is relying on four main growth drivers : series deliveries which will continue to increase (in both military and civil) in the coming years in a well developing market services activity gear up (global offers, training schools, innovative formulas, PFIs, ) numerous cost improvement and operational excellence programs in implementation acquisition of smaller companies adding competitiveness and new capabilities mainly in complementary business areas Organic growth will be combined with business development activities in services to leverage Eurocopter s growth potential EZ N 19/08 - p23 23

24 Eurocopter s perspectives and roadmap Globalized Supply Footprint Eurocopter will increasingly emphasis international deployment and progressively shape itself as multinational player : assure lastingly exchange rates neutrality integrate low cost engineering and production sources in its supply system transform emerging growth markets into home market bases generate lastingly growing business through local citizenship Europe will become the springboard to a truly international setup EZ N 19/08 - p24 24

25 Eurocopter s perspectives and roadmap Innovation Being conscious that customer perceived innovation is the key success factor in the industry, Eurocopter will assure its leading position in this area : deliberate shift from asset investment to innovation effort extension of market base through enhanced mission capability of products innovation as lever for drastic cost reduction (cycle times/production cost) speeding of services and product to market times Eurocopter focuses on Innovation as value and market growth driver EZ N 19/08 - p25 25

26 Conclusions solid and well balanced company - in terms of military and civil markets - in terms of platform and services business - in terms of national/international presence Thanks to its commercial successes, Eurocopter is able to finance the preparation of its future Growth perspective beyond 2012 is assured through - Strong globalization effort - well calibrated innovation focus - extension of business base in particular in the services area Eurocopter is dynamically flying ahead EZ N 19/08 - p26 26