Airbus Annual Press Conference 2024

Introduction

• Speakers: Julie Kitcher (Chief Sustainability Officer and Head of Communications), Guillaume Fauré (CEO), Thomas Topfer (CFO)
• Location: Toulouse
• Attendees: Both in-person and online
• Purpose: Present and discuss Airbus's full-year 2024 results

Key Highlights for 2024

• Strong order intake across all business segments
• Complex operating environment with geopolitical uncertainties
• Emphasis on quality and safety

Business Performance

Commercial Aircraft

• Delivered 766 aircraft in 2024, a 4% increase from the previous year
• Gross orders: 878, backlog: 8,658 aircraft
• A320 Family:
  • Leading position with 7,210 aircraft backlog
  • Delivered 602 aircraft including first A321 XLR
• Widebodies (A330, A350):
  • 224 gross orders
  • 89 deliveries including first A350 to Emirates
• Production Challenges:
  • Supply chain issues, particularly CFM engines
  • A350 and A220 affected by Spirit Aero systems
  • Target ramp-up rates for A320, A350, and A220

Helicopters

• Exceptional year with 450 net orders
• Growth in all helicopter categories and services
• Successful contract with Dutch Ministry of Defence for H225Ms
• RACER high-speed helicopter exceeds speed objectives

Defence and Space

• Record order intake, especially strong for Eurofighter and A400M
• Transformation efforts underway
• Technical review charges: 1.3 billion euros
• Exploring strategic options with Leonardo and Thales for space sector consolidation

Financial Overview

2024 Financial Results

• Revenue: 69.2 billion euros, a 6% increase
• EBIT adjusted: 5.4 billion euros
• Net income: 4.2 billion euros
• Free cash flow: 4.5 billion euros
• Net cash position: 11.8 billion euros

Division Performance

• Commercial Aircraft: EBIT adjusted increase to 5.1 billion euros
• Helicopters: EBIT adjusted of 818 million euros
• Defence and Space: EBIT adjusted at negative 566 million euros due to space program charges

Innovation and Sustainability

• Focus on decarbonization, sustainable aviation fuel (SAF), and hydrogen
• SAF Use: 18% in Airbus operations, goal of 30% by 2030
• ZeroE Project: Continues focus on hydrogen
• Ecopulse: Hybrid electric propulsion demonstrator successful

2025 Outlook

Guidance

• Target of 820 commercial aircraft deliveries
• EBIT adjusted of 7 billion euros
• Free cash flow before customer financing of 4.5 billion euros

Priorities

• Focus on ramp-up of production and transformation of defence and space
• Five Pillars: Safety, quality, integrity, compliance, security
• Engagement with partners, suppliers, and internal teams to manage supply chain challenges

Questions & Answers

• Discussions on ramp-up challenges, specifically with Spirit Aero systems
• A400M production visibility and export prospects
• Tariffs and geopolitical impacts
• Defence industry readiness in Europe
• Future of pilot operations and safety concerns
• Consolidation talks with Leonardo and Thales

Conclusion

• Continued investment in growth and sustainability
• Committed to innovation and collaboration despite challenges
• Emphasis on safety and quality as key priorities moving forward

These notes provide a summary of the key points discussed during the Airbus annual press conference for 2024. The main topics included business performance across different sectors, significant achievements in innovation and sustainability, financial performance, and outlook for 2025. The Q&A session covered various strategic and operational concerns, including production challenges and industry consolidation.