Full Year 2022 Airbus SE Earnings Press Conference
Welcome to the Airbus Annual Press conference, where we're going to present and discuss our full year 2022 results.
My name is Judy kitchen, I'm in charge of communication sustainability and corporate affairs.
And he with me to present the results are the Airbus CEO , Kim Foree and.
CFO Dominic as them.
We're really really happy to welcome you back here to the event Center introduced after two years of running this press conference and a full digital format.
So thank you for being here with us despite the numerous travel issues that we've been confronting over the last couple of days and we hope you really enjoyed the time I'd be a 325 then you saw here in <unk> with <unk> hundred 20 won't capability that you discovered with the teams yesterday.
Of course, a big thank you to those of you who are joining us online.
So today.
Jim and Dominic I'm going to explain how the company managed to complex 2022.
And what the road ahead looks like in 2023 and beyond Gameloft.
Yeah, almost start by sharing the key highlights for Airbus in each of our businesses and Dominic will then provide you with a deeper dive into the 2022 financials.
Then Jim will highlight some of the achievements on our sustainability roadmap before we move to a Q&A session.
Those of you following online we'll be able to submit your questions remotely using our lives E tool.
The entire press conference will be conducted in English and there will be no simultaneous translation.
So ladies and gentlemen, let me first please draw your attention to the Safe Harbor statement. Please familiarize yourselves with it you can see it on the screens now.
And remember that all forward looking statements such as our guidance are based on assumptions.
As conditions May change, so may our projections and our plans now.
Now before I hand over to Kim <unk>.
For an overview of 2022 I'm really pleased to share. This video with you, which I think demonstrates the key achievements F. T map off during the year 2022 I hope you enjoy it and we'll be back with you in a moment.
Every year, just the capacity to adapt.
2022 was no different.
[noise] together T map I'm trying to deliver for our customers always with safety and quality at home.
[music], we built an exciting new partnership.
We are transforming our company and with our partners the aerospace ecosystem.
Our commitment to uniting people cultures and businesses remains as strong as ever.
We continue to defend our bodies and protect the most vulnerable.
[noise] and everyone is playing basketball and accelerate our journey towards sustainable earnings base.
[noise]. Thank you Judy if you do from.
Your team in Houston.
Good morning.
Thank you all for being with us here or following us online this morning.
Given that you've already have time to go through the press release and follow the New School I'm sure. Most of you already sent me John with the figures.
And highlights although I'm fully on his children. So I'll try to keep my opening remarks relatively short two each time for your questions.
I'm sure you have plenty.
2022 was indeed, a complex sure we faced an adverse operating environment in many disruptions.
Almost one year ago to the day.
Russia invade Ukraine.
Furthermore, we had to adapt to a complex operating environments and in particular.
And adverse supply backdrop, which eventually led to few world commercial aircraft deliveries than originally in your plans.
This means it will take us two years to achieve what we had planned to do in one.
And this is reflected in our guidance, which I'll discuss later.
Steel team members delivered a good set of financials and you were able to propose a higher dividend payments.
Last year with 1.8 your share for 2022.
Dominik will take you through the financial performance in a moment.
Almost two months into 'twenty two 'twenty three we continue to see complexity and volatility cheap persisting.
Risks of fill their descriptions remain.
Albeit at a lower level than last year.
That context.
We'll be laser focused on ramping up the commercial aircraft production and continuing to work on our long term strategic priorities.
But before I go there, let's start with another view of the 2022 highlights across our businesses.
Let's begin with all key 2022 achievements in the commercial aircraft area.
We deliver on the 661 aircrafts in 2022.
<unk>, four which was around 8% up on the 2021 deliveries does she's on you're about half. The increase we had initially planned. So this is abusefully frustrating.
On the booking side, we want 1078 gross orders. This included 24 additional doors for new AC 50 Schrader.
The strength of the older reflects the industry's continued recovery during 2022 with air traffic, increasing and airlines raising humans for commercial aircraft as they focus on their long term fleet planning both in single aisle and also wide bodies.
At the end of December 2022 hour backfill got slightly increase compared to 2021 to 7259 aircraft.
The address operating environments combined with value of disruptions.
Given our supply chain from recovering at the pace, we had expected.
And we had to adapt our operations accordingly.
We have therefore, adjusted the <unk> hundred 20 ramp up trajectory, we all know progressing towards amongst the rate of 65 aircraft by the end of 'twenty 'twenty four and rates 75 in 2026.
Of course, we also continue to prepare our global industrial system to secure rates 75. Some of you were here yesterday, we have already seen preparations for our new <unk> hundred 20 family fun introduce which are well advanced.
Oh, Oh, how some of these sites are now 21 capable which will help us meet our <unk> objectives as we see an increasing share of <unk> hundred 20 ones in all delivery stream.
On the widebody side, we see a growing demand for wide body aircraft is international going to ask Howard recovers.
We are increasing AC 32, four aircraft a month.
And following a feasibility study with our supply chain, we have decided to increase <unk> production to nine aircraft a month at the end of 2025.
Finally, a.
A quick one on neuro settlements with Qatar Airways.
On the first of February this year, we announced we had reached and let me cable settlements related to the legal dispute.
If you saw phase degree edition and the granting of AC 50 aircrafts.
Part of the settlements. We have also agreed terms for the delivery of 50, <unk> hundred 20 ones in 2015 aircraft.
And we will be able to move forward and work together as partners again.
Now onto helicopters.
In 2022, Airbus helicopters had a good year.
With an ongoing market like ovarian positive momentum on both <unk> and.
Military markets.
We saw strong commercial momentum with the ongoing recovery.
Highlighted by over 200 autos for light single engine helicopters.
We booked 374 gross orders compared to Fone hundred 19 last year.
<unk> hundred 74 spread across the programs, including 12 <unk> hundred Sixty's.
We deliver on the C 144 helicopters worldwide, achieving a net book to bill above one both in units and value.
On the military side.
We launched a major upgrade of the Tiger helicopter as part of the so-called Moxie program for the French and Spanish armies.
We're also progressing with the design of the <unk> hundred 70, Fives and Assembly line in Bolton should the others team when the ongoing new medium helicopter campaign for the UK armed forces.
2022 was excuse.
Excuse me if you can share in terms of deliveries with the French Navy taking delivery of the first <unk> hundred 60 for search and rescue operations.
<unk> hundred 60, or so entered into service in Japan with all Nippon helicopter. We also delivered the first <unk> to the Spanish Minister of interior.
Overall, our helicopter business delivered a solid performance driven by growth in services higher deliveries as well as your board program execution and cost structures, so well done helicopters from 2022.
Now onto defence and space.
This gives me the opportunity to put the defence and space performance, although youre into perspective, 2022 was a difficult.
In a complex geopolitical and macroeconomic environments.
The financial performance of the division is disappointing.
Rising inflation impacted our long term contracts in particular all of the fallen in program.
And then I can commercial aircraft, we faced supply chain descriptions and.
In space.
We still felt the loss of access to Russian Soyuz launches delays to IL six and she launched Pedro <unk>.
Ops independent access to space is no fundamentally challenged.
That being said, we booked $13 $7 billion of orders in line with the 2021 level, representing a book to bill of around one point too.
Contract wins included although for the <unk> the future combat Air system demonstrator phase of <unk> and Youll drawn two strategic defense programs for the decades to come.
Included in audio for 'twenty Youll fighters for the Spanish are false and Johanna award of two contracts for the in service support of the Spanish fleet and a contract to provide two high performance optical Earth observation satellites to Poland.
2022 us pulling the need for his Twingo Europe in defence and space like in helicopters.
<unk> solutions enable governments to maintain the peace stability and security, which all societies have become used to and reach out absolute prerequisite. If we want to face our long term challenges.
There is no sustainability without security.
At Airbus well in order to work on projects, which are of critical importance for Europe's strategic autonomy.
I mentioned space as an area of concern for Europe currently, but again not go through 2022 highlights without mentioning the historic flight.
No. That's all he owns space craft.
To the Moon and back which took place late last year. These success made possible by the ambush built E. S. M. New York then service module has it been and even source of pride for all of his teams involved.
In my view, a clear example of our determination to play a pioneering role in aerospace we are all very much looking forward to the first who'd flights around the moon.
Which is currently planned for 'twenty 'twenty four.
But now back to Earth, if I may say.
And just before handing over to Dominik for the financials, let me mention that this year probation period under the terms.
Of the deferred prosecution agreement the Gpa's with the French.
Bakken is showing that if you don't see the U K SFO serious photo if he's in the U S Department of Justice and deed on 31st of January this year.
We are awaiting the formal determination by the authorities that Airbus has complied with the terms of the gpa's to close the prosecution against Airbus in line with a portion of your own requirements of each country.
<unk> will continue to meet its obligation under the consent agreement that is extended until October of 2023 as mutually agreed with the U S Department of state.
Although the posture.
We have implemented a strong companion wide control and governance with respect to ethics, and compliance, which we will maintain and continue to develop going forwards.
Clients is one of the five pillars of Airbus and will remain so.
Is embedded in our system the BTT commitments.
And now over to you Dominik for our financials.
Thank you.
And good morning to everyone here and also those who are following us life today.
I will talk to you briefly through the key highlights of our 2022 financials.
As stated earlier 2022 was characterized by a complex environment.
We were able to achieve our financial targets, but we're confronted with strong headwinds in the supply chain as a result of war.
Disruptions workforce shortages and other factors.
Starting with the top line in 2022, we generated revenues of $58 8 billion euros up 13% compared with 2021.
This reflects the higher number of commercial aircraft deliveries.
<unk> contribution from our other businesses as well as the appreciation of the U S dollar.
Our fiscal year EBIT adjusted increased to $5 6 billion euros, some 16% higher than in 2021.
This year on year improvement was driven mainly by the commercial aircraft performance.
Partially offset by the less favorable hedge rates versus 2021.
It includes some nonrecurring elements.
Looking at the results of the divisions.
Commercial aircraft EBIT adjusted increased to $4 6 billion euros up from $3 6 billion in the fiscal year 2021, reflecting the increased deliveries and supported by some nonrecurring elements.
The offset by less favorable hedge rate against 2021.
Airbus helicopters EBITA adjusted was 639 million euros and increase of around 20% year on year.
Reflecting higher services and program execution.
Airbus Defence and space EBIT adjusted.
What 384 million euros, a decrease of 45% compared with 2021, mainly reflecting the loss of two play out new satellites in December the delays to Atlanta six.
As well as the impact of a rising inflation.
Now coming to our consolidated EBIT reported it was around $5 3 billion euros and adjustments totaled a net negative of $4 3 billion.
We reported a net income of $4 2 billion for the year.
In terms of cash are.
Free cash flow before M&A and customer financing stood at a record positive.
$4 7 billion euros. This was supported by a favorable foreign exchange rate environment as well as strong positive phasing impacts from working capital.
Our net cash position stood at $9 4 billion euros as of the end of December .
And our liquidity position further increased to $31 6 billion euros.
Looking back at the past three years, we managed to where the multiple challenges to our balance sheet, including the pandemic the aforementioned tpa payment closing the year 2022, with a net cash position exceeding our net pension deficit by $6 5 billion euros.
On that positive note.
Over to beyond for a look at some of the key achievements on our sustainability roadmap.
Thank you Dominik.
As.
Some of you might have picked up from our full year results press release, we recently received approval from the <unk>.
<unk> was science based targets initiative for Airbus near term greenhouse gas emissions reduction targets.
This is a very important milestone, which demonstrates abbott's willingness to set climate targets aligned with science and hold ourselves accountable.
Let me briefly explain which targets we are talking about here.
As a company.
We committed to reducing our own industry or in greenhouse gas emissions known as scope, one and two by up to 63% by 2030.
Compared to 2015.
This is in line with a so called one five degree pathway and will be achieved through a number of measures including.
Increased use of sustainable aviation fuel beluga internal logistics and in our flight testing.
Accelerating our ambition to secure at least 90% direct supply of we enabled our low carbon electricity for all Airbus sites in Europe before 2030.
And significantly reducing our energy consumption on all sites such as using led technology for outdoor.
Outdoor lighting, introducing biomass instead of steam for heating and lighting and others.
We also committed to reducing our scope three by 46%.
Greenhouse gas emissions intensity again compared to 2015.
Emissions generic <unk> by our in service commercial aircraft and this is by 2035.
Alcohol product line is already delivering significant carbon reductions the <unk> hundred 20, the <unk> hundred 20, neo or the AC 30, New AC 50, or image, 20% to 25% less Youtube compounds to previous generation.
But we need to accelerate rapidly to meet that 46% target.
Investments in research and development are needed in the coming euros and decades for the sector.
But she is investing more than 2 billion euros in R&D of Euro two developed technological breakthroughs in that direction.
Addressing scope three emissions is actually a collective challenge and one we are addressing with our supply chain I am talking about the development of new publishing systems dramatic advances in systems, I always structures and materials.
The whole aviation ecosystem needs to arrive in the same place at the same time, including engine makers energy suppliers. Thank you titles and others.
We want to play a leading role in supporting the entire aviation industry as it works towards meeting each decarbonization targets and more specifically towards the aspirational goal of net zero emissions by 2050 adopted in October of last year by Aikido member States.
Now looking forwards.
Let me continue by sharing an overview of what we have on our plate for 2023.
I will start with our guidance, let me read it to you now.
As the basis for its 2020 guidance the company assumes no additional receptions to the world economy.
<unk> the supply chain, the companys internal operations and its ability to deliver products and services on that basis.
The company targets to achieve in 2023 around 720 commercial aircraft deliveries.
And maybe to just hit of around 6 billion euros, and a free cash flow before M&A and customer financing of around 3 billion euros.
This guidance reflects the adjusted growth trajectory of our commercial aircraft business, taking into account phasing of pre delivery payments. The investment we are making to prepare for future and the adverse operating environments.
We continue to face.
So looking beyond the numbers.
What will our pyrites being 2023.
This euro more than ever the main priorities to have ramped up commercial aircraft projections.
In the persisting adverse environment, we're facing.
We will closely work with our suppliers in order to adapt our production too much supply.
We will continue to play a leading role in the major defense programs that contribute to Europe strategic autonomy.
Unstable global security environment.
In parallel we will continue the long term transformation of the company to automate digitalize and Decarbonize, our processes products and services.
As you may have seen during our <unk> in December last year, we are accelerating the partnerships and innovation projects to deliver on our homebuilding <unk> to lead sustainable and aerospace.
Our focus is now to transition together with a boarder aerospace ecosystem.
<unk> ambitions.
Actions.
Before them.
At the end of it all back to Judy I would like to say a few words.
Today's lustre.
Full year results conference with you Dominik.
He's been a great privilege and honor to have you with us for four years.
<unk> brought a lot to Airbus you contribution has been amazing in very difficult times, and probably even more than the rest has been a real pleasure, we'll miss you Dominik and I really wish you. Good luck for your next challenge.
They are very lucky to get you ongoing thank you.
Thank you.
Really touched.
Julie back to you for the Q&A. Thank you.
So thank you again, thank you Dominic ladies and gentlemen, now we're about to begin our Q&A session.
So those of you here with us in the room today. Please raise your hand and wait until one communications team colleagues comes to you with.
The microphone and please.
Please help us by stating your name your publication and asking your question clearly said that we can give you the best answer possible.
So the media colleagues now following US online you can use the <unk> platform as I mentioned earlier to submit your questions in writing please submit them in English.
And obviously any technical difficulties you can reach out to us and the team. So we're going to begin the Q&A session now we'll try to take as many questions as we can starting here in the room of course.
So now their media colleagues the floor is yours.
Hi, Sid from Bloomberg a couple of questions. One was on free cash flow Dominik probably for you.
What you talked about sort of a look at free cash flow next year is to supply ramp up sort of increasing working capital requirements and how much of that will actually go to suppliers and will you need to support the supply, especially with rising energy costs and inflation.
Second on the Qatar <unk> hundred 50 compensation will it reflect in the 2023 results and how will it reflect will it be sort of.
How will you account for it on.
Youll widebody ramp up plans you talked about.
Ramping up production of the <unk> hundred 50, and the AC 30, New recently, we've seen comments reported by the Rolls Royce CEO talking about Rolls Royce being a burning platform.
You sort of are you concerned that your suppliers and may not be willing to commit as much capital to this expansion.
And in terms of supplies from Russia are you continuing to source stadium and aluminium from Russia.
So that's quite a few questions.
Next time, we may well, indeed met them and number.
Thanks.
Okay Dominic.
Maybe starting on the free cash flow.
If you look at 2022.
Year ago, we said that we will probably generate $1 2 billion less than what we actually achieved so we have been positively surprised by strong.
Cash flows and.
Topics like pre delivery payment coming in more strongly than anticipated.
There's also a timing issue on certain payments. So it was a very very strong outperformance in 2023 is a little bit of a flip side of that and certainly the re phasing of deliveries doesn't help. So these are really the major items that will explain.
The lower number in 2023, but I also want to reiterate that said, what we said on the capital markets that over a five year planning horizon from 'twenty two through 2026.
Deeply committed to a cash conversion of one.
On Qatar them, we have not we didn't need to take any incremental.
Bookings on the settlement everything is digested in the P&L in 2022.
I'll take the wide body.
So.
We need or partners and suppliers with us for the <unk>, including on the wide bodies, we took time in 2022 to <unk>.
As the supply chain capability.
And then there's a lot of expectations on hoarse voice and we are very close to them them. They are very close to us as well.
They will be focusing on the operations this year as they did last year.
And we count on them to come with us for the ramp up and that's what they have committed to.
Titanium, Russia no change we continue to diversify it takes time to get there and then.
We still take some time to be.
Fully independent from the Division sources.
Awesome.
Okay.
Hello, Good morning my.
My name is holding up and out of that from a review of my question is about space.
And the question is Fogey, hopefully you said and it's true that Europe has lost almost all capacity to access to the space due to the delay and they see.
Disaster so.
What is both is Airbus is planning to do what's going to do about it.
What lessons are learned for the future and how is these effect into your operations.
Well, that's obviously, a very important matter for for Europe and for the companies in Europe that contribute to access to space. We are part of.
Young with.
It's a joint venture, where we are 50% and that's something that has always been very close to us as we are in such a space.
You mentioned end of items, five and I N C is being delayed actually it's not only I and she's been delayed Easter.
The backlog on the iron and she's been very strong.
The slots are booked for a long period of time. So its commercial success of IL six I have to say.
The loss of Sioux use played a big role and then.
Zero of Vega, she end of last year.
I think we've been very successful over decades with ion when we you hooked gains came together as partners and.
United Our forces around iron in the meantime, and especially in the recent shows theres been divergence with a lot of independent.
Independent and national approaches to access to space.
And these very divided.
Situation is leading to the situation we have today, so my deep belief in which we are sharing with.
Although stakeholders around us, including states is that we need to converge to a European roadmap.
For access to space, that's the case with IL six so a lot of hopes and expectations on IL six that's probably be the first step to be successful for but we need to define a two European <unk>.
From an approach to access to space. That's what we are advocating for and I'm hopeful that this is what we will see happening moving forward given the very Betsy attrition rain, how to turn that crisis into something positive and an opportunity means having Europeans coming together again as it was the case when we have been successful.
Before.
That's beyond time from Liam.
Regarding the sustainability roadmap could you explain the.
The division between SaaS, and Hadrian, South short term hydrogen more longer term, but a little bit more color around the proportions and the actions.
Hmm.
Short version of an ongoing Russian.
I'm very passionate about it.
Well the way we are powering planes today is with fossil fuels. So we take Calvin.
From below the grown and actually by condition, we release it into the atmosphere.
The way to get to carbon neutrality.
And that's the short term priorities, we suffer when actually you take carbon fund Leer and true condition, you released a carbon or game and that's that's neutral okay, and many different ways to capture carbon India natural ways biomass, all synthetic ways of capturing the Calvin.
That's the solution for the short term and probably also for the quite midterm and long term on wide bodies.
SaaS is absolutely essential to the success of decarbonization and going to a carbon neutral by 2054 musician steel the use of such easily lithium carbon into the atmosphere. We've looked at ways to not put any grammar of Cabo in India.
There are not many of them and we have silicon hydrogen as the long term way of not poutine carbon India. That's why we're working big time on hydrogen entry into service of the plane by 2035 means that by 2050 that will be just a small share of the decarbonization that will come from hydrogen so from that perspective.
Seth and hydrogen are not competing with each other which we strongly believe that hydrogen is the long term solution.
Decarbonization, even more because it's compatible with what the rest of society is doing hydro journey as a way to store and to use energy.
So a way to store.
Energy sources that are intermittent like solar like Queen like others. So that really will play a big oil in my perspective and office breakeven on the long term.
So soft and hydrogen not SUS, all hydro and if we want to go a step further hydrogen is also a very important source for the staff on the long term when we go for fuels for artificial.
Synthetic fuels, so theres a lot of instead of advances of the two of the two businesses not speaking about.
Capture of carbon so we believe that holding up is the one that really makes sense on the short term urgency on this off and on the long term a way to be completely decarbonize on the long term for the generations to come and as we see ourselves as pioneers we want to be in the forefront of Suffolk and hydrogen even if it's more long term.
That was a bit of non Russian sorry for that thank you.
Hello, Richard do you have on the Aaron sorry, it looks like to you. So I have two topics first the supply chain is there a difference in the way you ramp up the supply chain over into production grades 40, narrow body and wide bodies are there lessons you can learn from ramping up the narrow bodies to the wide body and the second is the inflation reduction Act.
And what is going on that in Europe .
How is that affecting abbas or benefiting Abbas.
What impact does it have on your operations.
Okay.
So on the ramp up of single aisle and wide bodies. They are structural differences between the two.
One is.
I mean on wide bodies, we can be by far more granular on what we do given the small number.
<unk> airplanes, where on the single aisle, we are now on volumes.
Flow management on synchronized Theres, a lot of crossovers and a lot of similarities and we have some similar suppliers and we spend time.
Learning lessons are all inputs from each other but basically yes, the nature of the of the management of their own pocket is a bit of a different one when it comes to eye array.
I R. H challenge in Europe in the sense of having a very strong incentive package for accelerating on decarbonization technologies and fuels.
And this challenge is a good one as the U S have really move forwards very strongly and very seriously in the direction of decarbonization, but it's also a challenge because it highlights what Europe needs to do to be on a similar path and as you may know trajectory less with the sticking more with the current two.
Encourage investment in the right direction, I think Europe as understood. The magnitude of the challenge it's represents and yes, we see impacts as we see companies, which are very energy intensive.
Reviewing the investment cases, although small companies at that stage of companies outside of aerospace, but this could be brought in if there is no better visibility and certainty on the prices of energy and in particular Decarbonize energy. There are many other aspects that we could comment on I already but I think bottom line for us at this very moment, that's primarily what is important.
To us.
Ian Kushner Mechanicals loose.
Excuse me.
Do you have a comment on the Boeing and there's a demonstrator project.
Thank you John sorry.
So sorry can you repeat please I was looking for you in the room nights, Okay together comment to make on the Boeing and there's a the demonstrator project.
Yes.
It's a bit of the same of what I said with the IRA.
I think it's very good news for aviation I O space in decarbonization to see the U S are ramping up their default.
It goes in a similar direction under one we have taken so that the controls are.
Belief on the Mega trends and what needs to be achieved but there's going to be more competition.
They'll come with innovative solutions that come with ideas. They put money in investments in that direction I think that's the nature of our activity to be in competition and that's what we see coming so there's good and bad at the same time I think good for the TMA transformation of the industry and for the airline customer.
Xinyuan.
Okay.
Clearly the political.
Gil could you give us some more explanation about joint dress for minority share in <unk>.
What is it for.
At Airbus.
I mean, we come from a history of pioneering.
So six holes of aviation space defense.
With.
Very good technologies in the frame of iOS clutches wings flight characteristics good platforms for satellites, while the other years.
We've been able to grow and be more competitive going into systems.
And today, we are system denies our designers and manufacturers moving forwards the world in our own businesses beats commercial aviation defense space helicopters will be very much enabled by data big data.
Connectivity.
Cloud based solutions.
Connected objects in a cyber secured environments.
A lot of stimulation and data and high power computing to use the models we are developing.
So there's a lot of.
Complementarity and synergies with what <unk>.
<unk> is doing and therefore, we are looking at growing our relationship having a strategic partnership moving forwards.
With a region and also making a financial investment that makes sense would it make sense.
In a region that would be a nice way to combine our prisons at the capital and.
I mean deeper ties with vision of course under conditions that this makes sense from a financial standpoint, and that's what we want to be able to judge better judge and decided moving forwards with vision, but we're working with them in a spirit of partnership.
And very good relationship at this very moment with vision looking at all those opportunities in the world that is becoming by far more digital moving forward.
Good morning, Matt Jarvis show from ASB.
You recorded a new charge of 500 million euros on the 400 and <unk>.
Do you have any hope of adding this program profitable one day.
Dominik you free speech before.
Before leaving.
Maybe maybe a couple of words about what were the key drivers in that charge.
We had of course, the inflation situation, which was quite unique I think which we have to take into account and then there are some qualification milestone looming west.
Some some challenges were visible.
But of course, there's always the not only the whole put tremendous efforts to come to that position and absent any any disasters. That's still the plan of course.
Okay. So we're going to switch to a few online questions now.
We have the first one from that one mile from Nasty Gal.
How do you plan to ensure delivery slots to your customers and win new orders for <unk> hundred 20, and <unk> hundred 21, when the order book represents almost 11 years of production.
And Airbus seems to lag reasonable delivery slots to deliver to a fast deadline.
Can you specify what will be the contribution of each file a 391 and <unk> hundred 20 neo to the increase in production right.
So what we see happening in.
In the market today is the need to transition from.
Produce technologies to the new ones.
All airlines under the pressure of reducing their cost of reducing the fuel burn of reducing the carbon emissions and therefore, the new technologies as I explained in my introduction are absolutely key for this on top of these new technologies enable the use of more expensive stuff and absolutely essential for the ramp up of the <unk>.
Use of soft for airlines.
The lifetime of a plane is roughly 25 years more or less we.
We have slots available for the <unk> hundred 20 family now in 2029. So that's just a fraction of the lifetime of a plane and we see all airlines are working on their long term planning and we will see airlines, placing orders and we've seen it already.
For the next decade as they need to plan to secure access to slots in an industry, where the demand is clearly stronger than disciplined I think the other part of the answer is absolutely essential to be successful in our own Pip and going to 875, but also deciding to go to rates 75 was away.
To better serve that demand and not to be too far away in the slots, we would be offering.
And when it comes to the Assembly line, where all of us.
The lines are of similar size in nature, and they will produce FY 'twenty and FY 'twenty ones and we will have nine assembly lines around the world.
Once we have finished the investment we are doing so they will be it will be distributed on those assembly lines more or less in a balanced way.
Thank you, we'll take one more from our online Wall Street Journal are abandoning cat. So you had backhaul to convince suppliers and lessors to get behind the <unk> hundred 20 ramp are you seeing any reluctance with this wide body decision.
That's the first one the second one can you give us a sense of how significant the delays katayama on your wide body programs.
Third are you concerned that this risk diverting focus on ramping up the <unk> hundred 20 can you do both.
Please keep their Christian on the screen.
No. There is no competition on the ramp up between 'twenty and the wide bodies on the wide bodies, we well if I take the 50 at rates 10 before Covid as I told you. We are we have decided to go back to <unk>. So we are not yet at the.
The rates, we had before COVID-19 and those rates are important not only for us to be profitable on the wide bodies, but for our suppliers as well so humping of the widebody is actually good news for everybody.
There are no delays on the widebody programs in the sense of what we what we have on the senior line. So we've not really started the ramp up to the same extent.
So we are delivering on time on the wide bodies overall.
And therefore, I mean, yes, the accumulative impact of ramp up on the 'twenty three 'twenty and the wide body is what makes that incredible success.
<unk> to deliver that's the beauty of being ambitious at this very moment.
You have to deliver on all programs, which are very successful from a product standpoint from a market standpoint, and that's what the company is committed to be doing in 2023 and beyond.
Putting in Lotto aviation week to.
Two questions. Please.
Thank you.
You mentioned, the <unk> targets and 46% by 35 I guess.
The math would suggest that the neo is less than half of that and the 350.
The recipe achieved through incremental innovation of existing products or will you have to come up with something.
New in between the current lineup and the hydrogen aircraft and 35.
My second question is on the <unk> hundred 20 for some of your key customers are pressuring you to go ahead with the Dutch 500 soon.
Can you just tell me what your position is again.
Whether your.
What the kind of key design features could be.
Simple stretch versus.
Capable aircraft.
Okay.
So when it comes to <unk>.
<unk>.
The the holding up is till 2035, okay for the minus 46% on the scope three.
So it has to rely on technologies, which are in the accounts today, meaning not the big transition that will happen in the second half of next decade with a new generation of planes. The six yourselves of what we have today.
There will be incremental improvement.
In that phase as we normally do but it has to rely a lot on the ramp up of the use of stuff.
And that's why we are insisting submission and spending so much time with partners all around the world and especially energy partners and <unk>.
Aggregate hauls and airlines to make sure that this hump of stuff will happen and at Airbus. We have taken very ambitious objectives for 2023 in the use of <unk> to be ahead of the curve in and sort of I mean is.
Leading by example.
When it comes to the two.
<unk> to 'twenty. So we're really in the ramp up phase of the existing versions of the 220.
Yes, there is a very strong appetite from the market for a so called Dash five Android all touch version of the of the 'twenty. We're currently looking at the different options for architecture and commonalities between the existing versions in the future ones and exchanging with some of our customers we have not yet.
Decided to move forwards, there's a lot on our plate already and we want to be successful on their own but first I have already said and Christian shall I say this as well that the 500 is not a matter of if it's a matter of when but we have not yet crossed that bridge and we have not yet fallen what the plane would look like.
Thank you good morning, Alex niche Arris aviation analyst here, good morning, and Gail on SaaS and Jaco.
Calling for more action in scaling up at Hughes, you said recently quote ambition is not yet matched by action and but Airbus is part of our commitment that means that just 10% of global aviation fuel will be SaaS. So.
Typically needs to do more and why is that 10% not more ambitious itself.
My second question is on the continuing weak sales of the <unk> hundred <unk> 800 variant Hawaiian Airlines CEO revealed that the lung cancer. Its order because they didn't want to be stuck with an aircraft that isn't sufficiently accepted in the market place is there a long term future for this variant of the <unk>. Thank you.
Thank you so.
So the 10% suffer objective.
Needs to be achieved by 2030 by the industry.
To be consistent with the trajectory for carbon neutrality by 2050.
And today, we are less than 1% significantly less than 1% of use of staff in the industry.
We see a lot of projects anywhere and we try to play a role of catalyst in accelerating and actually we've seen a lot of positive news in the last year.
A bit of course, the world in Europe in the U S. Mainly on airlines committing to the use of 10% of subs by 2030 and disclosing their contracts through the companies. They are working with and when we speak with them.
Energy producers.
They are now coming to decision points investments. So on the one hand, we are behind we don't yet see the secured project oriented to 10% by 2030 on the other hand, there's a lot of momentum and I am optimistic that in the next two or three years, we'll see the projects the investments that will secure these 10% by 2000.
30.
So the jury is out but.
It's time for action in the sense of making those projects become reality and therefore, enabling.
The growth of the use of the pollution and use of <unk> by 2030, So it's feasible, it's not yet done.
Airlines of course, then you need to be a demand if you won't airlines to other demand. It helps to have either regulations and mandates or incentives as we see in the U S and there are other things that happen, including Iraq recently, okay and in Europe , as well, so I'm optimistic but steel.
Actions are ahead of us.
On the T cell genome well that product was ramping up when hit by Covid. So it was not very helpful. In terms of timing, we strongly believe in the competitiveness of that product and there is room temperature focused hitachi name and by the way, we humping up on the 13th two rightful. So that's a product I'm really I really believing that fits into the Airbus product range.
And that corresponds to expectations of certain markets in terms of price competitiveness.
Got it.
I think I'll go from the Spanish prisoner Woodside since yesterday can you develop a bit more about the problems of the a 400 and program. There is a new chart. This year. This is not the first one this is not the second one and.
Will it have some obligations for the production or for for the program itself. That's no objective for this year.
So we are executing our contracts on the F. One of them.
We've delivered in 2022 more planes I think two more than what we delivered in 2021 I think we deliver 10 claims as far as I remember on last year.
And we still have 50 ish to deliver to them a bit more to all customers.
We have a plan for the final assembly lines, we're working on export coal export prospects and customers that that's really the next phase of the program.
If all of them.
As a product.
It's been very visible in a very positive way.
When there was the kaboul events, and we had all customers of the funnel them, but one that presented in February with airplanes, and it became absolutely abuse to or mid.
Military new operators around the world that it was a unique capability in terms of ability to.
Yeah manage critical operations.
Far from the business. So there is a need for a phone to them. They are a lot of discussions around the world on on.
Defense at the moment, given the very shaky.
Hope all is equal environment win and we believe that the capacity that is that is needed. So we keep moving forward on the program. There were a lot of charges last year somewhere linked to.
Evolution in.
Inflation, given the nature of the contract, but basically we keep developing the product we are committed to the so called stock free capabilities and we're very focused on bringing those capabilities to the market to our customers.
Okay. So we're going to take a few more questions online we've got.
A couple from Sylvia FIFO and the financial times.
First one on the supply chain, what specific lessons, where you apply to the <unk> hundred 50 ramp up that you were forced to learn from the delayed <unk> hundred 20 ramp.
Have you changed your own internal operations in any way.
And then on Russian aviation, how much visibility do you have on what is happening in Russia, where the airlines are being forced to cannibalize components from granted aircraft.
So.
Trying to be short.
I think I answered already the question on the on the widebody ramp up to a large extent, yes, a lot of lessons around from what's happening on the on our senior line.
So very deep alignment with suppliers monitoring their own capacity to do the ramp up.
We changed our operations, yes of course, and that's something that you have explained in the course of last year, especially what we've done on our iOS touch on businesses.
And to be prepared for the long term to digitalize across the board. So that's very much the preparation for the long term. It has some challenges on the short term when we transform as we grow and as we ramped up that's a that's a bit of an additional headwinds, which we absolutely convinced that's the right thing to do and we have also changed quite a bit the way we.
Procure we work with the suppliers. So I mean, a lot of changes I won't go into the long list of what we've done last year and we will continue to do this year and when it comes to Russia.
We have some visibility, but obviously by far less than what we had before the 24th of February last year.
What we observe is that the Russian airlines have been able to continue to fly in spite of the sanctions and they are actually in 2022 flying more in the second half of 2022, then the where they were flying before Covid, So very high flight rates in Russia with those planes.
But we start to hear about situations, where they are missing parts components, our own ability to keep some of the planes in flight, but we are not speaking with a Russian airlines, we missed visibility and yes. We are we are slightly concerned about the way.
The planes are operating but we have no really mean to act and of course, we completely and absolutely comply with the sanctions.
Novel, Almac Arrow Telegraph from Germany, and I am just following up on the eighth week 13, Neal you said I believe you you believe in the future of it and that's why you're ramping up but what about the <unk> hundred 3800, I think that's kind of.
Interested about.
But there is no AC 50.
<unk> 800, we have a 900, we are a Dutch one thousands.
Sure.
Okay.
The <unk> hundred 30, <unk>, that's not a very okay, sorry, I misunderstood.
We have the 809 hundred we have few customers for the 800 and there is huge successful 900 compared to the eight on where do we have the two versions.
We'd see moving forwards how customers want to be using one or the other there is a super high level of commonalities between the two so I see it more as a one product risky 30, new and two different volumes there might be others moving forward I don't know, but today the.
The success is really with the Dash 900 version.
So I'll take another one online so we have the time to time with such a turbulent start to the year does Airbus still have sufficient sufficient confidence that the air transport market and demand for aircraft will continue to grow.
What are the key factors that with an April Airbus to continue to maintain its dominant position after four consecutive years of leading aircraft orders and delivery.
So I think that one maybe.
<unk>.
When do we see the demand.
I think over being very strongly actually today demands.
In terms of.
At hotspot is still higher than supply. That's why you see the difficulties to book your own slides and the price has been quite high and the recovery of the air transport is actually even faster than the ability of the Oems to supply. So I anticipate that it will continue to be the case.
Specially with the reopening of China and the growth in Asia. So I guess, we'll continue to see.
Very bullish market when it comes to.
To aviation.
Maintaining our dominant position on bookings comes with the competitiveness of the planes and they will remain super competitive they are today.
It becomes more difficult to sell discrete twenties, given the long lead times. It was highlighted earlier on during the call, but we see airlines planning for long term plannings and when it comes to deliveries, it's mainly related to the speed of a ramp up that's why we're focusing so much on the ramp up.
So it would be on timely and months again latching onto the <unk> hundred 30 neo questions.
The engine of the <unk> hundred 30, <unk> always a variant of the Trent 1000, which has had trouble lives.
Over recent years.
Could you comment on the how that engine is functioning on the 330 to you it's less stressed on that platform, but what is the experience so far.
So the first point is that the Trent 7000 of the researching new.
<unk> is an engine that takes component system technologies from the 10th 1000 or so from the EW beep, So that's and that's.
In engineered itself. The Trent 1000 problems have been mainly solved and the crossover learnings on the Trent 7000 have been I've been wrong. So that's also positive that the problems were happening first on another engine and that's an engine that is performing well in service that's still lacking expire.
Since we are still at the beginning of the life of the product I'm not suggesting there is no issue there issues with all and genes that cause the world at the moment, but it's an engine that is performing well.
In service.
You talked a lot a old boozer and my question is although too early cooked here how do you explain.
But to H 160 is no tier two certified in the USA.
And when do you expect to get the certification.
We expect to get the certification soon and there's been actually a long delay in certification between you.
Europe and U S.
Stemming from.
Questions raised by the FAA as long as I remember on the behavior of some systems and it took time for the helicopter team to two.
To answer in an environment, where authorities addition authorities.
Overloaded and maybe take some more time than we used to.
C. A previously for a number of reasons, so I'm not too specific on the answer to your question I'm not so familiar with it took each but that's basically what I remember from the discussions we had with the helicopters.
Okay. So we have one online.
Stefan via Tpa, good morning, tea Stfan I'm sorry.
We missed you are you still in Frankfurt.
So and India, CCR Nippon Agarwal, well yesterday evening that in addition to the record order for 470 planes from Airbus and Boeing the carrier has options to buy another 370 jet.
We already know about R&D as options to 70, Boeing Jets 50, 737, Max and 20 787. So it does seem to exist option for 300 more what proportion of these options is attributable to weather.
I will not answer that question auctions purchase rights and so on all things around that.
This closing on it not in a systematic way at least we have communicated on what's likely to be the film orders and the agreements we have with India and I think 2050 planes 40, basically fifties and 210 <unk> hundred 20 familiar craft is a very sizeable amount already.
So all told again.
On the freighters, you've launched the age of 50 freighter and there's been talk about you're launching in Asia searching neo based freighter and an <unk> hundred 21 neo for Newbuild freighter.
Can you give us an update on your thinking there.
I want to say there is demand.
We cannot serve everything at the moment, we have to choose our battles.
But there is obviously demand for more freighters.
And as long as we have not decided to move forward for a program. There's no problem. So we are focusing on which we have launched which is the 50 freighter.
When it comes to the the single aisle, we're really focusing on what we have to deliver already I mean, we have so much on our plate, that's probably not very likely in the short term.
And you can draw your own conclusion.
By the absence of comment.
On the salt products.
Michael Ghoulish from cerium.
Back to deliveries are your delivery targets for 2023, I think 720 wells you target for last year.
What makes you confident that you will reach this year and the second question is more in the future.
Do you see your.
Zero emission aircraft.
Presumably a narrow body being produced in the same volumes at <unk> hundred 20 family today.
Do you think that you can produce you zero emission aircraft or a future narrow body and the same volumes that you can produce narrow bodies today with the.
The environmental pressure going to grow.
For the first question well it will have taken us two euros to go to 720, where when we started 2022 with the ambition of the objective to do it in one year. So what makes me more comfortable is the fact that we are a growth to deliver in 2023 that is very similar to what we have done.
In 2022 and by the way close to what we have done in 2021 as well so we come to a much more he has enable.
Ambitions for this year on top.
We have worked so much with suppliers in 2022 to overcome problems that we have now a very deep and garnered our understanding of their own situation their own ability to ramp up in their own capacities. What we don't know is what the world will.
How the world will surprise us in 2023, there are always things happening.
Look can happen, sometimes maybe it's going to be a bit of a better environment than what we faced last year with Ukraine and inflation in energy crises.
And the long list so.
We think we have the situation much better and hence.
In 2023 than we had last year and again the level of ambition is much much lower unfortunately.
Now when it comes to <unk>, we will be delivering similar numbers in the AC 'twenty. What we are in 2023, okay beginning of the 2000 Twenty's.
This hydrogen technology will be popular in large numbers, maybe into 2015 or the 2016.
So huge technology transition what will the market look like at that time I don't know.
Maybe we'll produce thousands of claims every year when we produce today or 1500 <unk>.
Principally in combined so.
I think there is huge potential for the technology. We are preparing the long term we believe in it and we are doing the technological steps today to be able to be in a position decades later, where we produce our airplanes in numbers that are may be much bigger than what we think today I believe we are at the beginning of aviation and once we have decarbonize each day.
Perfect and the ultimate way of moving people and goods around the planet you don't need the infrastructure on the ground.
And any color from Bloomberg just a follow up on your deliveries for this year 720.
If you look at the breakdown by product family you delivered $63 50 last year.
That seems fairly conservative for this year are you more optimistic given your current build rate, but you can be more towards 70 or beyond for this year and maybe also a sense for the 330 new.
The ramp up in deliveries.
In 2023 compared to 2022 will be mainly on the $2 20 in 2027.
Now understand the bill that the ramp up.
So it's safe to assume that the 60 is pretty much wells done this year for this we don't communicate on numbers per family.
Our lewke, except that we do some anchor points on the rates at a given point in time. So if you want to have a certain understanding of what it will look like for the future right 65, and have reached 65 and of 24 for the single aisle targeting rate 14, 4% to 20 in the middle of the decade, we have no.
The rates fall and the eight 9% for the wide bodies 'twenty four 'twenty five so you can have a certain understanding of where we go we are not that granular when it comes to deliveries of planes for 2023 for the current year.
So many things happening.
It's very much a dynamic we have our plans we know what we want to deliver but what will be the situation at the end of the year will vary product by product. Therefore, what I can share with you is it's primarily driven by the <unk> to 2020 in terms of volumes. Okay. Thank you.
Okay.
Okay.
On the 220 <unk> over.
Over 45 at the moment or are you.
Are you closer to 50 or are you going to be close to 45 423.
One of them.
I like the rule of thumb.
Because generally speaking is not too wrong, we were around 45 ish end of last year, which was behind our objectives for 2022.
And will be.
At 50 ish of rich on the Euro. So it gives you an indication where we need to be by year end of 2023, but again. These are all of them not too long, but not so precise.
Thank you Jim So we have Thomas Paine from simple flying online what role is Airbus playing in keeping the existing Airbus a 380 fleet flying and how long will let us continue to support the a 380 fleet.
Well, we do what we do for all of our existing products, which are no longer in production and some of the very long life. After the <unk>.
Collection is.
<unk> finished as ended.
We are I mean, there are 250 ish planes in service. So it's very garnered all the kind of support we are bringing to customers, especially.
For companies Airlines that have decided to retire the plane and finally bring the plane back to service we've seen many of them.
We have a special relationship with Emirates as half of the worldwide fleet is flying with Emirates, and so we have a very close relationship in terms of support in terms of retrofits in terms of.
Improvements of the plane moving forward, even if we no longer produce the aircraft and we will support it as long as they are aircraft in service even more that it is D. S E T and it's so symbolic and then so emblematic of our products. So full support to the acre 18 service I would be very happy to see that plane flying as long as possible.
Over the next decade.
Thank you we have Tim <unk> from Reuters.
Do you think in retrospect Airbus waited too long before dropping delivery guidance last year and when do you think you'll have a fairly stable here after delivery performance this year, especially in light of the weak start in January .
And second what lessons do you draw from the Qatar Steve.
Tim Mike anything Cognize your own.
Youre thinking.
Sure.
Can we could we have done better on the on the guidance last year, where I think we it was a very dynamic situation and we've tried to update the market as good as we could with a very difficult environment very challenging environments.
And we have to drop our objectives and are quite late in the year. So I don't think we could have done much better and we've been very.
Open to the markets on our situation.
2023.
I believe in the targets we have in the guidance, we have given because that's really relying on a lot of data points and much better understanding of.
The general supply environment, and the individual situation of our suppliers so even if.
I was rather disappointed about 'twenty deliveries in general unions, he brought to the team.
In your papers.
I think we are on track to.
At least for the first half of the year on the foreseeable future.
For the 700 and 'twenty guidance, we're giving today.
Lessons learned from the Qatar disputes.
Sure My.
Lessons learned with AG.
<unk> and we have come to an agreement together a settlement and we we'd be moving forwards capitalizing on what we want to do better together moving forward and when I say that we are moving forward as partners I really mean, it we will support them as good as we can.
And we want to work together for the best of both companies.
I could go with chicken for cerium.
Just quick question do you have any new view on the 380 secondary market with a lot of aircraft, but not a lot of but some aircraft on giving back and.
Obviously delivery.
Delays for four.
Long haul aircraft.
Do you see that there might be some opportunities for 380 secondary sales.
I mean delays on.
Long haul aircraft I guess, you're not speaking about our aircraft.
We are very happy to deliver a Hitachi news 350, and deliver them on time, and we are humping up to be able to be in that situation, even with his tongue on demand. So I don't feel like we have delays on the wide bodies at Airbus.
It's good to see the CAH is coming back to service with the airlines that have decided to retire them.
But it remains a very specific product.
And we don't see a very dynamic secondary market really changing the future with a gap.
That's what you get.
Hum.
With the award of a lot of long haul aircraft maybe.
But that's probably ahead of us I don't see it yet.
Thank you so we have shown.
So I'm glad to hear from the FM business for them.
More information in India do you plan to build a production line in India in the coming year.
No we don't plan to build a production line.
In the coming years beyond the production line, we are already building now.
As you know we are building a 295 production line in India, and if I may.
A major contract that we have signed in.
In partnership with Tata.
To serve the Indian Air Force.
And that's already a big task.
Ahead of US, we're growing in India, and many perspectives in our presence in India, but mainly in engineering and in digital and systems development.
We are also growing the supply from a lot of Indian suppliers. So actually we are accelerating in India big time, but not necessarily with an additional norm.
Assembly line with additional in the sense of more than what we are building for the FY 'twenty or in addition to what we're doing already in India with a Cte 95, so neither a lot on their plate.
Any more questions in the room.
Well as a lot already.
Good questions.
Okay.
Okay.
Pass up the opportunity.
On the a lot of airlines have talked about delivery delays and having to schedule sort of deliveries that would do for 'twenty. Three 'twenty four we've seen a couple of U S carrier Spirit Airlines Hawaii.
Is that what is it sort of impact on EBIT on sort of the compensation that you'll have to pay these airlines.
Because of the delays.
Suggests to handover to Dominion that gives an opportunity to dominik to answer <unk> question, and maybe maybe finish by the onset of Dominica Junior on we advocate nutrition sector.
It really depends on the situation on the contract and also on the circumstances of the delays I mean, there are certain circumstances, which are clearly excusable delays in which case there is no compensation.
Things like a more.
Covid and so forth and.
But people always look for solutions with the customer to come to agreements you'll recall that when we had.
The wish from customers.
And corporate times to defer them. We also accommodated that now we have to find agreements with them because of the supply chain issues are triggered by some major events.
In the world.
Okay. So thank you very much thanks to all our media colleagues for their great questions and I Daresay tick.
<unk> M to Dominic for the great answers too.
So Dominic Mitel now as well to say, it's really been a great honor and a privilege to work alongside you. So thank you.
And as we say here until at Bunzl, we will Miss you.
And so we'll bring the press conference now to a close.
Once again, we really thank you for being with US here today, both physically interlace.
Online and I'd like as well to give a warm. Thank you to all the Airbus Communications colleagues for making this happen a lot goes into it. So thank you very much and if you have any follow up questions.
Well it will be around for a while and obviously open to any feedback you'd like to share. So thank you all and yeah. We're happy to exchange with you. Thank you.
[noise].
Sure.
Yeah.
[music].