Airbus Reports Strong Full-Year (FY) 2021 results

Airbus

Amsterdam: Airbus 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.

Also read: Airbus Helicopters ‘Bounces Back’ in 2021

“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.

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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 € 13.7 billion (2020: € 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 € 62.0 billion (2020: € 33.3 billion) with the consolidated order book valued at € 398 billion on 31 December 2021 (year-end 2020: € 373 billion). The increase in the backlog value mainly reflected the strengthening US dollar.

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Consolidated revenues increased 4 percent to € 52.1 billion (2020: € 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.

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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 € 4,865 million (2020: € 1,706 million).

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

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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 € 535 million (2020: € 471 million), mainly driven by support and services, programme execution and cost focus.

Also read: New Generation A350F Freighter to Join Etihad Airways fleet

EBIT Adjusted at Airbus Defence and Space increased to € 696 million (2020: € 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 € 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 € 2,746 million (2020: € 2,858 million).

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

These Adjustments comprised:

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

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

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

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

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

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

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

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

The Board of Directors will propose the payment of a 2021 dividend of € 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 € 5.5 billion

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

Consolidated Airbus – Full-Year (FY) 2021 Results  

(Amounts in Euro)

Consolidated Airbus
FY 2021
FY 2020
Change
Revenues, in millions

thereof defence, in millions

52,149

9,175

49,912

10,517

+4%

-13%

EBIT Adjusted, in millions 4,865 1,706 +185%
EBIT (reported), in millions 5,342 -510
Research & Development expenses, in millions 2,746 2,858 -4%
Net Income/Loss(2), in millions 4,213 -1,133
Earnings/Loss Per Share   5.36 -1.45
Free Cash Flow (FCF), in millions 3,511 -7,362
Free Cash Flow before M&A, in millions 3,543 -6,811
Free Cash Flow before M&A and Customer Financing, in millions 3,515 -6,935
Dividend per share(3) 1.50
Order Intake, in millions 62,007 33,290 +86%

 

 

Consolidated Airbus
31 Dec 2021
31 Dec 2020
Change
Order book, in millions of Euro

thereof defence, in millions of Euro

398,439

43,110           

373,127

38,587

+7%

+12%

Net Cash position, in millions of Euro 7,643 4,312 +77%
Number of employees 126,495 131,349 -4%

 

 

 

 

 

 

 

 

By Business Segment
Revenues
EBIT (reported)
(Amounts in millions of Euro) FY 2021 FY 2020 Change FY 2021 FY 2020 Change
Airbus 36,164 34,250 +6% 4,175 -1,330
Airbus Helicopters 6,509 6,251 +4% 535 455 +18%
Airbus Defence and Space 10,186 10,446 -2% 568 408 +39%
Eliminations -710 -1,035 64 -43
Total 52,149 49,912 +4% 5,342 -510

 

 

 

 

 

 

 

 

 

 

 

By Business Segment
EBIT Adjusted
(Amounts in millions of Euro) FY 2021 FY 2020 Change
Airbus 3,570 618 +478%
Airbus Helicopters 535 471 +14%
Airbus Defence and Space 696 660 +5%
Eliminations 64 -43
Total 4,865 1,706 +185%

 

 

By Business Segment
Order Intake (net)
Order Book
FY 2021 FY 2020 Change 31 Dec 2021 31 Dec 2020 Change
Airbus, in units 507 268 +89% 7,082 7,184 -1%
Airbus, in millions of Euro 40,004 16,089 +149% 345,101 324,675 +6%
Airbus Helicopters, in  units 414 268 +54% 739 663 +11%
Airbus Helicopters, in millions of Euro 8,552 5,519 +55% 17,985 15,782 +14%
Airbus Defence and Space, in millions of Euro 13,656 11,862 +15% 36,131 33,505 +8%

 

 

Consolidated Airbus – Fourth Quarter (Q4) 2021 Results

(Amounts in Euro)

Consolidated Airbus
Q4 2021
Q4 2020
Change
Revenues, in millions 16,994 19,751 -14%
EBIT Adjusted, in millions 1,496 1,831 -18%
EBIT (reported), in millions 1,905 1,675 +14%
Net Income(2), in millions 1,578 1,553 +2%
Earnings Per Share  2.01 1.98 +2%

 

 

 

 

 

 

 

 

 

 

By Business Segment Revenues EBIT (reported)
(Amounts in millions of

Euro)

Q4 2021 Q4 2020 Change Q4 2021 Q4 2020 Change
Airbus 11,546 13,979 -17% 1,286 1,069 +20%
Airbus Helicopters 2,372 2,628 -10% 223 217 +3%
Airbus Defence and Space 3,305 3,510 -6% 364 444 -18%
Eliminations -229 -366 32 -55
Total 16,994 19,751 -14% 1,905 1,675 +14%

 

 

 

 

 

 

 

 

 

 

 

 

By Business Segment
EBIT Adjusted
(Amounts in millions of Euro) Q4 2021 Q4 2020 Change
Airbus 831 1,259 -34%
Airbus Helicopters 221 233 -5%
Airbus Defence and Space 412 394 +5%
Eliminations 32 -55
Total 1,496 1,831 -18%

 

 

 

 

 

 

 

 

 

 

 

Q4 2021 revenues decreased by 14%, mainly driven by lower commercial aircraft deliveries compared to the fourth quarter of 2020 as well as lower revenues at Airbus Helicopters and at Airbus Defence and Space.   

Q4 2021 EBIT Adjusted declined by 18% to € 1,496 million, mainly reflecting the lower commercial aircraft deliveries as well as a negative year-on-year impact from currency hedging.

Q4 2021 EBIT (reported) of € 1,905 million included net Adjustments of € +409 million. Net Adjustments in the fourth quarter of 2020 amounted to € -156 million.

Q4 2021 Net Income of € 1,578 million mainly reflects the EBIT (reported), € -143 million from the financial result and the low effective tax rate.

EBIT (reported) / EBIT Adjusted Reconciliation

The table below reconciles EBIT (reported) with EBIT Adjusted.

Consolidated Airbus

(Amounts in millions of Euro)

FY 2021
EBIT (reported) 5,342
thereof:
A380 programme +274
Gain on disposal +122
A400M charge -212
$ PDP mismatch/balance sheet revaluation -38
Others +331
EBIT Adjusted 4,865

 

 

Glossary 

KPI DEFINITION
EBIT The Company continues to use the term EBIT (Earnings before interest and taxes). It is identical to Profit before finance result and income taxes as defined by IFRS Rules.
Adjustment Adjustment, an alternative performance measure, is a term used by the Company which includes 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.
EBIT Adjusted The Company uses an alternative performance measure, EBIT Adjustedas a 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.
EPS Adjusted EPS Adjusted is an alternative performance measure of basic earnings per share as reported whereby the net income as the numerator does include Adjustments. For reconciliation, see the Analyst presentation.
Gross cash position The Company defines its consolidated gross cash position as the sum of (i) cash and cash equivalents and (ii) securities (all as recorded in the consolidated statement of financial position).
Net cash position For the definition of the alternative performance measure net cash position, see the Universal Registration Document, MD&A section 2.1.6.
FCF For the definition of the alternative performance measure free cash flow, see the Universal Registration Document, MD&A section 2.1.6.1. It is a key indicator which allows the Company to measure the amount of cash flow generated from operations after cash used in investing activities.
FCF before M&A Free cash flow before mergers and acquisitions refers to free cash flow as defined in the Universal Registration Document, MD&A section 2.1.6.1 adjusted for net proceeds from disposals and acquisitions. It is an alternative performance measure and key indicator that reflects free cash flow excluding those cash flows resulting from acquisitions and disposals of businesses.
FCF before M&A and customer financing Free cash flow before M&A and customer financing refers to free cash flow before mergers and acquisitions adjusted for cash flow related to aircraft financing activities. It is an alternative performance measure and indicator that may be used occasionally by the Company in its financial guidance, especially when there is higher uncertainty around customer financing activities.

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