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© AIRBUS all rights reserved. Confidential and proprietary document.
AIRBUS Market and Financing update
Doric Aviation Day 25th April 2017Cathal Kyle
Head of Customer FinanceEurope & Asia
Deliveries10,208
Orders17,082 6,874
Backlog
An Airbus takes off or lands every 1.5 seconds
End December 2016
Deliveries688
Orders949 6,874
Backlog
End December 2016
Orders and Deliveries in 2016
© AIRBUS all rights reserved. Confidential and proprietary document.
• Investing in Aviation
• Trends in Aircraft Financing
• Product Life Cycle
© AIRBUS all rights reserved. Confidential and proprietary document.
Why should Financiers be attracted by Aviation?
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
Air travel has proved to be resilient to external shocks
Source: ICAO, Airbus GMF 2016
RPK = Revenue Passager Kilometre
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Gulf CrisisOil CrisisAsianCrisis
WTCAttackOil Crisis SARS Financial
Crisis
x2
World annual traffic (trillion RPK)
Air traffic doubles every 15 years
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
World traffic will increase further by 2035
Source: Airbus GMF2016
RPK traffic by airline domicile (billions)
0 2,000 4,000 6,000
Asia-Pacific
Europe
North America
Middle East
Latin America
CIS
Africa
30%
25%
24%
9%
5%
4%
3%
5.7%
3.7%
2.9%
5.7%
4.8%
4.1%
4.8%
% of 2015world RPK
20-year growth
36%
22%
19%
11%
5%
4%
3%
% of 2035world RPK
2015 traffic 2016-2035 traffic
20-year world annual traffic growth
4.5%
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
Airlines are better managed and consistently profitableIndustry-----------------------------------------------------------------------Record profits in 2016
Source: ICAO, IATA
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
100
150
200
250
300
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Year
A320 Family operator base supports long-term liquidity
Number of passenger airline operators
269Almost doubledin a decade
End February 2017Source: Ascend
In-service passenger aircraft
Operator base-----------------------------------------------------------------------10 more operators per year on average, over last 10 years
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
Secondary market lease transactions in 2016
A320 Family:301 leases88 Operators
-----------------------------------------------------------------------
Africa 4
Asia Pacific 46
Europe 66
North America 21
Latin America + Caribbean 21
Middle East 7
Transactions as per Ascend known data 1/01/2016 – 31/12/2016Includes dry leases – leased in, lease extensions
A320 Family
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
Secondary market lease transactions in 2016
A320 Family:301 leases88 Operators
-----------------------------------------------------------------------
A330 Family:47 leases26 operators
Africa 448
66
North America 21
Latin America + Caribbean 21
7
A320 Family Transactions as per Ascend known data 1/01/2016 – 31/12/2016Includes dry leases – leased in, lease extensions
7
3
22
123
A330 Family
Europe
Asia Pacific Middle East
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
Aviation attracts premium pricing
A Tranche vs IG index pricingA tranche (left axis)IG (left axis) A minus IG pricing
B Tranche vs HY BB sub-indexB tranche
B minus HY BB pricingHY BB
EETC performance-----------------------------------------------------------------------A & B Tranche continue to offer yield premium
Source: Deutsche Bank
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
1. Long-term, stable view available on the sector2. Less volatile than other sectors3. Mobile asset - Transaction with very high recovery rate4. Premium pricing (on relative value basis) versus other
sectors
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
• Trends in Aircraft Financing
• Product Life Cycle
© AIRBUS all rights reserved. Confidential and proprietary document.
Financing of Airbus deliveries in 2016: 688 a/c
Manufacturer1%
Commercial Debt Airline
30%
Commercial Debt Lessor
4%Capital Markets5%
Cash Airline15%
Cash Lessor14%
SLB31%
Share in number of deliveries
As of end of December 2016
• 49% Lessors
• 45% Airline Cash and Commercial debt
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
The leasing market 10 years ago: U.S. centric business
246 482
18
33
Airbus lessor backlog at end 2004
2716
2004 lessor end of year backlog-----------------------------------------------------------------------7 lessors
Total backlog: 389 (26% of backlog)
Source:Airbus orders and deliveries – end 2004
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
Today’s leasing market: truly a worldwide business
225144 81
109
124
89 9732
5735
137
Airbus lessor backlog at end 201420
12470
2014 lessor end of year backlog-----------------------------------------------------------------------14 lessors
Total backlog: 1,277 (20% of backlog)
Source:Airbus orders and deliveries – end 2014
April 2017
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Lessors have financed 49% of Airbus aircraft in 2016
Total Airbus deliveries: 688
Data to end of December 2016
Lessors-----------------------------------------------------------------------
Aircraft financed 39% directly
61% through Sale and Lease Backs
SLBDirect
0
20
40
Deliveries – top 15 lessors
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
• Product Life Cycle
Comfort-----------------------------------------------------------------------
Efficiency-----------------------------------------------------------------------
Profitability-----------------------------------------------------------------------
© AIRBUS all rights reserved. Confidential and proprietary document.
A350 XWB – a record number of orders prior to the 1st delivery
821 firm orders65 delivery
756 backlog44 customers10 operators
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.© AIRBUS all rights reserved. Confidential and proprietary document.
25%Compared to previous generation
25% lower• operating cost• fuel burn• CO2 emissions
New levelsof efficiency
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
A350 XWB - significantly more orders & customers at EIS than previous Airbus type
EIS: Entry Into Service. EIS is date of first commercial service
EIS 25th May, 1974 EIS 12th April, 1983 EIS 18th April, 1988 EIS 15th March, 1993 EIS 25th October, 2007 EIS 15th January, 2015
18 orders
6 customers
103 orders
16 customers
294 orders
20 customers
233 orders
30 customers
165 orders
14 customers
780 orders
40 customers
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
A330 – the world’s favourite widebody
A take-off or landing every 25 seconds
1,686 firm orders1,326 deliveries
360 backlog (146 ceo & 214 neo)115 customers
120 operators
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
14%lower fuel burn &CO2 emissions*
NOx emissions
25%below CAEP/6
15EPNdBmargin toChapter 4
*per seat vs. current A330
© AIRBUS all rights reserved. Confidential and proprietary document.
A320 Family: over 13,000 sales
A take-off or landing every 2 seconds
13,067 firm orders7,442 deliveries5,625 backlog (626 ceo & 4,999 neo)
295 customers324 operators
As of end of January 2017Customers/Operators includes VIP
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
*97t MTOW and up to 3 ACTs
** Maintenance Planning Document
A320neo Innovation where it matters-----------------------------------------------------------------------
Lower operatingcosts with more revenue potential
95% airframe spares commonality with the A320
Landing gear+20% more time
between overhauls
Updated MPD**-5% lower aircraft maintenance cost
New bleed systemHigher reliability
Lower maintenance cost
Sharklets & New Engines-15% lower fuel burn
Increased Cabin Efficiencymore seats
A321LR*Up to 4,000nm range
April 2017
15%lower fuel burn &CO2 emissions*
NOx emissions
50%below CAEP/6
20EPNdBmargin toChapter 4
*Per seat vs A320ceoBest engine shown
Deliveries207
Orders319 112
Backlog
An A380 takes off or lands every 3 minutes
End December 2016
92
19
12
14
10
7
8
10
6
5
12
6
6
© AIRBUS all rights reserved. Confidential and proprietary document.
A380 Network
Expanding A380 network-113 routes57 destinations
Doha
A380 hubs
Current A380 routesFuture A380 routes
OAG data at January 2017
Doha
LondonParis Frankfurt
Dubai
Melbourne
Sydney
BangkokSingaporeKuala Lumpur
Seoul
GuangzhouMiami
Houston Washington New York
Toronto
Manchester
Zurich
Abidjan
Barcelona
MauritiusJohannesburg
Roma
Munich
Amsterdam
Auckland
Brisbane
Los AngelesSan Francisco
TokyoOsaka
Beijing
ShanghaiNew Delhi
Mumbai
DallasHong Kong
Kuwait
JeddahAtlanta
Abu Dhabi
Milan
Perth
Madrid
Dusseldorf
Chengdu
Copenhagen
Vancouver
Mexico
MoscowBirmingham
Prague
Taipei
3 Alliances represented
Doha
Vienna
Boston
Christchurch
Medina
Sao Paulo
Casablanca
April 2017
© AIRBUS all rights reserved. Confidential and proprietary document.
* Project development study
** Selected by Customers for new headof versions
New rear stair**14 seats
Premium economy class at 9 abreast
11 seats
New forward stair *~20 seats
Combined crew rest compartment**
3 seats
Economy class at 11 abreast
23 seats
Upper deck sidewall stowage removal**
6 seats
A380 cabindevelopments-----------------------------------------------------------------------Up to 80 additional seatswith similarcomfort level
April 2017
LiquidityStability Premium
An Airbus takes off or lands every 1.5 seconds
Growth
© AIRBUS all rights reserved. Confidential and proprietary document.
THANK YOUTHANK YOU
April 2017
© AIRBUS (Airbus S.A.S., Airbus Operations S.A.S., Airbus Operations GmbH, Airbus Operations LDT, Airbus Opeartions SL, Airbus China LTD, Airbus (Tianjin) Final Assembly Company LTD, Airbus (Tianjin) Delivery Centre LTD). All rights reserved. Confidential and proprietary document. This document and all information contained herein is the sole property of AIRBUS. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of AIRBUS S.A.S. This document and its content shall not be used for any purpose other than that for which it is supplied. The statements made herein do not constitute an offer. They are based on the mentioned assumptions and are expressed in good faith. Where the supporting grounds for these statements are not shown, AIRBUS S.A.S. will be pleased to explain the basis thereof. AIRBUS, its logo, A300, A310, A318, A319, A320, A321, A330, A340, A350, A380, A400M are registered trademarks.
© AIRBUS all rights reserved. Confidential and proprietary document.
