First half-year 2018 Financial Report2018 Semi-annual report of the Board of Directors .......................................................................................................................................... 2
Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Information for the six-month period ended 30 June 2018 ................. 4

Appendix: Review report of the independent auditor

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 20182018 Semi-annual report of the Board of Directors
1.

Semi-annual report on activities

Main events in the first half-year of 2018
For an overview of the main events that occurred during the first half of 2018 and their impact on the Unaudited Condensed Interim IFRS
Consolidated Financial Information of the Company for the six-month period ended 30 June 2018 (the “Semi-Annual Financial Statements”),
please refer to the press release, which was approved by the Board of Directors on 25 July 2018 and will be issued on 26 July 2018,available on Airbus’ website www.airbus.com.
For further information and detail regarding the Company’s activities, finances, financing, risk factors and corporate governance, please referto the Company’s website www.airbus.com and the documents posted thereon.

Related party transactions
Please refer to the notes to the Semi-Annual Financial Statements attached hereto (see “– Note 4: Related Party Transactions”).

2.

Risk factors

By systematically integrating Enterprise Risk Management (“ERM”) across the company, the Company is mitigating risk and increasing
opportunity, to support risk taking for value creation and competitiveness. Consequently, the company has made ERM a key management
process, carefully followed by the Board of Directors.
The ERM system plays a key role to:-make the business more robust and predictable,-

support operational decision making,-improve the business results,-

reduce the exposure level to risks,-

ensure Airbus ERM compliance regarding the Dutch Corporate Governance Code.

For a description of the Enterprise Risk Management system, the main risks and uncertainties please refer to the:a.

Airbus SE Report of the Board of Directors 2017 (sections 4.5 and 4.6)
(http://www.airbus.com/content/dam/events/annual-generalmeeting/Report%20of%20the%20Board%20of%20Directors%202017%20Airbus%20SE.pdf), andb.

Airbus SE Registration Document (section “Risk Factors”)(http://www.airbus.com/content/dam/corporate-topics/financial-and-companyinformation/AIRBUS_Registration_Document_2017_EV.pdf)

2

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 20183.

Semi-Annual Financial Statements

The Semi-Annual Financial Statements, including the review report by Ernst & Young Accountants LLP, are attached hereto.

4.

Statement of the Board of Directors

The Board of Directors of Airbus hereby declares that, to the best of its knowledge:
the Semi-Annual Financial Statements for the period ended 30 June 2018 give a true and fair view of the assets, liabilities, financial positionand profits or losses of Airbus and undertakings included in the consolidation taken as a whole; andthis Semi-Annual Board Report (including the press release, which was approved by the Board of Directors on 25 July 2018 and will be
issued on 26 July 2018) gives a true and fair view of the position as per the balance sheet date, and of the development and performance
during the first half of the 2018 financial year and expected course of events of Airbus and undertakings included in the consolidation taken
as a whole. This Semi-Annual Board Report has paid special attention to investments and circumstances upon which the development ofrevenues and profitability is dependent, as these have been described herein.

25 July 2018,
The Board of Directors
Denis Ranque, Chairman
Tom Enders, Chief Executive Officer
Victor Chu, Director
Jean-Pierre Clamadieu, Director
Ralph D. Crosby, Director
Lord Paul Drayson, Director
Catherine Guillouard, Director
Hermann-Josef Lamberti, Director
María Amparo Moraleda Martínez, Director
Claudia Nemat, Director
René Obermann, Director
Carlos Tavares, Director

3

Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

Contents
1 Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Statements ......................................................................5
Unaudited Condensed Interim IFRS Consolidated Income Statement ...............................................................................................5
Unaudited Condensed Interim IFRS Consolidated Statement of Comprehensive Income .................................................................6
Unaudited Condensed Interim IFRS Consolidated Statement of Financial Position ...........................................................................7
Unaudited Condensed Interim IFRS Consolidated Statement of Cash Flows ....................................................................................9
Unaudited Condensed Interim IFRS Consolidated Statement of Changes in Equity ........................................................................ 10
2 Notes to the Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Statements ............................................... 111.

The Company ..................................................................................................................................................................... 112.

Accounting Policies ............................................................................................................................................................. 113.

Acquisitions and Disposals .................................................................................................................................................. 17

4.

Related Party Transactions ................................................................................................................................................. 17

5.

Segment Information ........................................................................................................................................................... 18

6.

Revenue, Gross Margin and Profit before Financial Result and Income Taxes .................................................................... 19

7.

Total Financial Result.......................................................................................................................................................... 19

8.

Income Taxes ..................................................................................................................................................................... 20

9.

Earnings per Share ............................................................................................................................................................. 20

10.

Intangible Assets and Property, Plant and Equipment ......................................................................................................... 20

11.

Investments Accounted for under the Equity Method ........................................................................................................... 20

12.

Other Investments and Other Long-Term Financial Assets ................................................................................................. 20

13.

Inventories .......................................................................................................................................................................... 21

14.

Contract Assets, Contract Liabilities and Trade Receivables ............................................................................................... 21

15.

Provisions ........................................................................................................................................................................... 21

16.

Other Financial Assets and Other Financial Liabilities ......................................................................................................... 21

17.

Other Assets and Other Liabilities ....................................................................................................................................... 22

18.

Total Equity ......................................................................................................................................................................... 23

19.

Net Cash ............................................................................................................................................................................. 23

20.

Information about Financial Instruments .............................................................................................................................. 24

21.

Litigation and Claims ........................................................................................................................................................... 25

22.

Number of Employees ......................................................................................................................................................... 27

23.

Events after the Reporting Date .......................................................................................................................................... 27

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

1
Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Statements
Unaudited Condensed Interim
IFRS Consolidated Income Statement(In € million)

Revenue (1)Cost of sales (1)Gross margin (1)Selling expenses
Administrative expenses
Research and development expenses
Other income
Other expenses
Share of profit from investments accounted for underthe equity method (1)Other income from investments
Profit before financial result and income taxes (1)Interest income
Interest expense
Other financial result (1)Total financial result (1)Income taxes (1)Profit for the period (1)

Note
6
6

1 January 30 June 2018
24,970(21,730)
3,240
(411)
(683)
(1,403)310(43)

1 January 30 June 201725,175(22,390)
2,785
(462)
(800)
(1,288)787(60)

1 April 30 June 2018
14,851(12,685)
2,166
(226)
(326)
(787)
54
(34)

1 April 30 June 2017
13,733(11,953)
1,780
(251)
(388)
(740)
84
(39)

81
29
1,120
87
(199)
(191)
(303)
(324)
493

149
100
1,211
81
(251)
242
72
(192)
1,091

50
24
921
46
(95)
(293)
(342)
(370)
209

107
83
636
42
(124)
360
278
(233)
681

496
(3)

1,091
0

213
(4)

682
(1)

€
0.64
0.64

€
1.41
1.40

€
0.27
0.27

€
0.88
0.88

6

7
8

Attributable to:Equity owners of the parent (Net income) (1)Non-controlling interests
Earnings per share
Basic (1)Diluted (1)
(1)

9
9

Previous year figures are restated due to the application of IFRS 15.

The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.

5

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

Unaudited Condensed Interim
IFRS Consolidated Statement of Comprehensive Income(In € million)

Profit for the period (1)Other comprehensive income

1 January 30 June 2018
493

1 January 30 June 2017
1,091

1 April 30 June 2018209

1 April 30 June 2017
681

(4)
(89)

362
0

257
(39)

297
0

8
6

5
(113)

2
(60)

(1)
(74)

28
(1,159)
(67)

(314)
6,746
129

136
(3,153)
(23)

(277)
4,928
76

(6)
303
(980)
(487)

(13)
(1,954)
4,848
5,939

0
850
(2,030)(1,821)(4)(1,441)
3,504
4,185

(478)
(9)

5,914
25

(1,806)
(15)

4,170
15

Items that will not be reclassified to profit or loss:
Remeasurement of the defined benefit pension plans
Change in fair value of assets (2)Share of change from investments accounted forunder the equity method
Income tax relating to items that will not be reclassified
Items that may be reclassified to profit or loss:
Foreign currency translation differences for foreign
operations
Change in fair value of cash flow hedges
Change in fair value of assets (2)Share of change from investments accounted forunder the equity method
Income tax relating to items that may be reclassified
Other comprehensive income, net of tax
Total comprehensive income for the period (1)Attributable to:Equity owners of the parent (1)Non-controlling interests(1)(2)

Previous year figures are restated due to the application of IFRS 15.
IFRS 9 new classification category (prior year-end: change in fair value of available-for-sale financial assets).

The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.

6

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

Unaudited Condensed Interim
IFRS Consolidated Statement of Financial Position(In € million)

AssetsNon-current assets
Intangible assets
Property, plant and equipment
Investment property
Investments accounted for under the equity method
Other investments and other long-term financial assets
Non-current contract assets
Non-current other financial assets
Non-current other assets
Deferred tax assets
Non-current securities
Total non-current assets (1)Note

30 June 201831 December 201710
10

11,581
16,476
3
1,512
4,309
123
1,634
979
4,737
10,551
51,905

11,62916,610
3
1,617
4,204
1
2,980
975
4,563
10,94453,526

33,775
5,389
564
2,399
1,824
3,784
1,388
2,086
5,138
56,34735
108,287

29,737
5,487
529
2,120
1,979
2,937
914
1,627
12,01657,346
202
111,074

11
12
14
16
17

Current assets
Inventories
Trade receivables
Current portion of other long-term financial assets
Current contract assets
Current other financial assets
Current other assets
Current tax assets
Current securities
Cash and cash equivalents
Total current assets (1)Assets and disposal group of assets classified as held for sale
Total assets (1)

13
14
14
16
17

19
3

7

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

(In € million)

Equity and liabilities
Equity attributable to equity owners of the parent
Capital stockReserves (1)Accumulated other comprehensive income (1)Treasury shares
Total equity attributable to equity owners of the parent (1)Non-controlling interests
Total equity
Liabilities
Non-current liabilities
Non-current provisions (1)Long-term financing liabilities
Non-current contract liabilities (1)Non-current other financial liabilities (1)Non-current other liabilities (1)Deferred tax liabilities (1)Non-current deferred income (1)Total non-current liabilities (1)Current liabilities
Current provisions (1)Short-term financing liabilities (1)Trade liabilities (1)Current contract liabilities (1)Current other financial liabilities (1)Current other liabilities (1)Current tax liabilities
Current deferred income
Total current liabilities (1)Disposal group of liabilities classified as held for sale
Total liabilities (1)Total equity and liabilities (1)
(1)

Note

30 June 201831 December 2017

18

776
6,908
1,569
(54)
9,199
(8)
9,191

775
7,225
2,742
(2)
10,7402
10,742

15
20
14
16
17

9,843
7,636
14,670
6,250
310
1,298
47
40,054

9,779
8,984
15,353
6,704
298
1,002
42
42,162

15
20

5,684
2,071
13,617
28,797
2,243
4,528
1,557
545
59,042
0
99,096108,287

6,272
2,213
13,40628,227
2,050
3,909
1,481
506
58,064
106
100,332
111,074

14
16
17

3

Previous year figures are restated due to the application of IFRS 15.

The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.

8

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

Unaudited Condensed Interim
IFRS Consolidated Statement of Cash Flows
1 January 30 June 2018

1 January 30 June 2017

Operating activities:
Profit for the period attributable to equity owners of the parent (Net income) (1)Loss for the period attributable to non-controlling interests

496
(3)

1,091
0

Adjustments to reconcile profit for the period to cash provided by operating
activities:
Depreciation and amortization
Valuation adjustments (1)Deferred tax expense (income) (1)

1,162
99
468

1,086
(121)
20

Change in income tax assets, income tax liabilities and provisions for income
tax
Results on disposals of non-current assets
Results of investments accounted for under the equity method (1)Change in current and non-current provisions (1)Contribution to plan assets
Change in other operating assets and liabilities (1)Cash (used for) operating activities (1) (2)

(403)
(216)
(81)
(385)
(126)
(4,501)(3,490)

150
(764)
(149)
(180)
(146)
(2,907)(1,920)(916)(1,060)

158
0

86
740

Payments for investments accounted for under the equity method, otherinvestments and other long-term financial assets

(238)

(501)

Proceeds from disposals of investments accounted for under the equity
method, other investments and other long-term financial assets
Dividends paid by companies valued at equity

220
0

379
19

Disposals of non-current assets and disposal groups classified as assets held
for sale and liabilities directly associatedChange in securities
Cash (used for) investing activities

207
11
(558)

0
(149)
(486)

(1,580)(1,161)0
112(52)(2,681)(154)(6,883)
12,021
5,138
5,138
0

1,512
(1,043)
(2)
79
0
546
(170)
(2,030)10,160
8,130
7,887
243

(In € million)

Note

Investing activities:
Purchases of intangible assets, property, plant and equipment, investment
property
Proceeds from disposals of intangible assets, property, plant and equipment
and investment property
Proceeds from disposals of subsidiaries (net of cash)

Financing activities:
Change in financing liabilities
Cash distribution to Airbus SE shareholders
Dividends paid to non-controlling interests
Changes in capital and non-controlling interests
Change in treasury shares
Cash (used for) provided by financing activities
Effect of foreign exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period (3)Cash and cash equivalents at end of period
thereof presented as cash and cash equivalents
thereof presented as part of disposal groups classified as held for sale
(1)
(2)
(3)

3

Previous year figures are restated due to the application of IFRS 15.
Cash provided by operating activities has been positively impacted by certain agreements reached with the Company’s suppliers and customers
relating to the settlement of claims and negotiation on payment terms.
The cash and cash equivalents at the beginning of the period 2018 include € 5 million, which is presented as part of assets of disposal groups
classified as held for sale.

The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.

9

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

Unaudited Condensed Interim
IFRS Consolidated Statement of Changes in Equity

Balance at 1 January 2017, as reported
Restatements (1)Balance at 1 January 2017, restated (1)Profit for the period (1)Other comprehensive income
Total comprehensive income for the period

Equity attributable
to equity ownersof the parent
3,657(2,088)
1,569
1,091
4,823
5,914

Non-controllinginterests
(5)
0
(5)
0
25
25

Total Equity
3,652(2,088)
1,564
1,091
4,848
5,939

Cash distribution to shareholders /Dividends paid to non-controlling interests
Capital increase
Share-based payment (IFRS 2)
Equity transaction (IAS 27)
Balance at 30 June 2017, restated (1)(1,043)
79
30
0
6,549

(2)
0
0
(23)
(5)

(1,045)
79
30
(23)
6,544

Balance at 1 January 2018, as reported
Restatements (1) (2)Balance at 1 January 2018, restated (1) (2)Profit for the period
Other comprehensive income
Total comprehensive income for the period

13,348(2,616)
10,732
496
(974)
(478)

3
(1)
2
(3)
(6)
(9)

13,351(2,617)
10,734
493
(980)
(487)

Cash distribution to shareholders /dividends to non-controlling interests
Capital increase
Share-based payment (IFRS 2)
Equity transaction (IAS 27)
Change in treasury shares
Balance at 30 June 2018

(1,161)
112
52
(6)
(52)
9,199

0
0
0
(1)
0
(8)

(1,161)
112
52
(7)
(52)
9,191

(In € million)

(1)
(2)

Previous year figures are restated due to the application of IFRS 15.
Opening balance figures are restated due to the application of IFRS 9.

The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.

10

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 20182
Notes to the Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Statements
1.

The Company

The accompanying Unaudited Condensed Interim IFRS Consolidated Financial Statements present the financial position and the resultsof operations of Airbus SE and its subsidiaries, a European public limited-liability company (Societas Europaea) with its seat (statutairezetel) in Amsterdam, The Netherlands, its registered address at Mendelweg 30, 2333 CS Leiden, The Netherlands, and registered with
the Dutch Commercial Register (Handelsregister) under number 24288945. The Company reportable segments are Airbus, Airbus
Helicopters and Airbus Defence and Space (see “– Note 5: Segment Information”). The Company is listed on the European stock
exchanges in Paris, Frankfurt am Main, Madrid, Barcelona, Valencia and Bilbao. The Unaudited Condensed Interim IFRS Consolidated
Financial Statements were authorised for issue by the Company’s Board of Directors on 25 July 2018.

2.

Accounting Policies

The Unaudited Condensed Interim Consolidated Financial Statements are prepared in accordance with International Financial
Reporting Standards (“IFRS”), issued by the International Accounting Standards Board (“IASB”) as endorsed by the European Union(“EU”) as at 30 June 2018. They are prepared and reported in euro (“€”) and all values are rounded to the nearest million appropriately.
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect theabsolute figures.
These Unaudited Condensed Interim IFRS Consolidated Financial Statements are prepared in compliance with IAS 34 and should beread in conjunction with the IFRS Consolidated Financial Statements as of 31 December 2017. With the exception of the changes
highlighted below and applied for the first time in six-month period ended 30 June 2018, the Company’s accounting policies andmethods are unchanged compared to 31 December 2017.
The Company has implemented the new standards IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from contracts withcustomers” on 1 January 2018. As a result, the Company has changed its accounting policy for revenue recognition and for theaccounting of financial instruments as detailed below.
The implementation of other amended standards and new interpretation has no material impact on the Unaudited Condensed Interim
IFRS Consolidated Financial Statements as of 30 June 2018.

IFRS 15 “Revenue from Contracts with Customers”
In May 2014, the IASB issued IFRS 15 which establishes a single comprehensive framework for determining when to recognise revenue
and how much revenue to recognise. IFRS 15 replaced the former revenue recognition standards IAS 18 “Revenue” and IAS 11“Construction contracts” and related interpretations. The core principle of IFRS 15 is that an entity recognizes revenue to depict thetransfer of control of the promised goods or/and services (performance obligations) in an amount that reflects the consideration to whichthat entity is entitled.
The Company adopted the new standard on 1 January 2018, using the full retrospective transition method. Accordingly, the Company
restated the comparative 2017 results included in the first half-year 2018 Unaudited Condensed Interim IFRS Consolidated Financial
Statements. The opening equity was restated as of 1 January 2017.
The Company has elected the practical expedients for completed contracts and contract modifications. As a result, the Company has
not restated completed contracts which began and ended within 2017 or which were completed as at the beginning of 1 January 2017.
The Company used transaction price at the date contract was completed rather than estimating variable consideration amounts in thecomparative reporting periods. The Company has reflected the aggregate effect of all of the modifications that occur before 1 January
2017 in identifying the performance obligations, determining the transaction price and allocating the transaction price.
The application of those practical expedients allows an efficient implementation of the standard especially on complex transactions(e.g. contractual amendments on military contracts) and a provision of relevant information under IFRS 15.
The Company will use the practical expedient applicable to the disclosure on the amount of the transaction price allocated to theremaining performance obligations (i.e. backlog) and an explanation of when it expects to recognize the amount as revenue. This
information will be disclosed as at 31 December 2018 without comparative information.
11

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

The Company revised its accounting policies relative to revenue recognition, to implement IFRS 15 “Revenue from contracts withcustomers” as follows.
Revenue recognition
The Company recognises revenue when it transfers the control of the promised goods and services to the customer. The Company
measures revenue, for the consideration to which the Company is expected to be entitled in exchange for transferring promised goods
or services. Variable considerations are included in the transaction price when it is highly probable that there will be no significant
reversal of the revenue in the future. The Company identifies the various performance obligations of the contract and allocates thetransaction price to these performance obligations.
Advances and pre-delivery payments (contract liabilities) are normal and not considered a significant financing component as they areintended to protect the Company from the customer failing to complete its obligations under the contract.
Revenue from the sale of commercial aircraft
Revenue is recognised at a point in time (i.e. at the delivery of the aircraft). The Company estimates the amount of price concession fordelivered aircraft and treats the price concession as a reduction of both revenue and cost of sales.
Revenue from the sale of military aircraft, space systems and services
When the control of the produced good and rendered services is transferred over time to the customer, revenue is recognised over time(i.e. under the percentage of completion method).
The Company transfers control over time when:-

it produces a good with no alternative use and the Company has an irrevocable right to payment (including a reasonable margin) for
the work completed to date, in the event of termination of the contract for the convenience of the customer (e.g. Tiger contract,
A400M development performance obligation); or-

it creates a good which is controlled by the customer as the good is created or enhanced (e.g. Eurofighter contracts, some bordersecurity contracts); or-

the customer simultaneously receives and consumes the benefits provided by the Company (e.g. maintenance contracts).

For the application of the overtime method (PoC method), the measure of the progress towards complete satisfaction of a performanceobligations is based on inputs (i.e. cost incurred).
When none of the criteria stated above have been met, revenue is recognised at a point in time. Revenue has been recognised at thedelivery of the aircraft under IFRS 15 from the sale of military transport aircraft, from the A400M launch contract and most of NH90
serial helicopters contracts.
The most signiﬁcant changes result from the following:-

Several performance obligations are identiﬁed instead of recognising a single contract margin under IAS 11 (e.g. A400M, NH90
contracts). In some cases, the over time (e.g. percentage of completion (“PoC”) method) revenue recognition criteria are not fulﬁlled
under IFRS 15. In particular, for A350 launch contracts, A400M series production and certain NH90 contracts, revenue andproduction costs relative to the manufacture of aircraft are recognised at a point in time (e.g. upon delivery of the aircraft to thecustomer).

-

Under IFRS 15, measurement of the revenue takes into account variable consideration constraints in order to achieve highlikelihood that a signiﬁcant reversal of the recognised revenue will not occur in the future. The constraint in assessing revenue atcompletion for some contracts (A400M) generates a decrease in recognised revenue.

-

For the application of the overtime method (“PoC method”), the Company measures its progress towards complete satisfaction of
performance obligations is based on inputs (i.e. cost incurred) rather than on outputs (i.e. milestones achieved). For the Company’s
current long-term construction contracts progresses were usually measured based on milestones achieved (e.g. Tiger programme,
satellites, orbital infrastructures). Under IFRS 15, The Company measures progress of work performed using a cost-to-cost
approach, whenever control of the work performed transfers to the customer over time.

IFRS 15 also impacts the presentation of the revenue from the sales of engines. Under IAS 18, the Company recognised revenue basedon the amount of its contracts with its customer, unless it had conﬁrmation of the amount of the price concession. In contrast, IFRS 15
requires the Company to estimate the amount of price concession in all cases and to treat the price concession as a reduction ofrevenue and cost of sales. Under IFRS 15, revenue and cost of sales decrease by the amount of the estimated concession granted by
The Company’s engine supplier to their customers.
In addition to these changes, IFRS 15 introduced a new class of assets and liabilities “contract assets” and “contract liabilities”.
-

A contract asset represents the company’s right to consideration in exchange for goods or services that the Company has
transferred to a customer when that right is conditioned by something other than the passage of time (e.g. revenue recognised fromthe application of the PoC method before the Company has a right to invoice. Unbilled revenue was prior to the implementation of
IFRS 15 reported within “trade receivables”).

-

A contract liability represents the Company’s obligation to transfer goods or services to a customer for which the customer has paid
a consideration (e.g. contract liabilities mainly include the customer advance payments received which were reported prior to theimplementation of IFRS 15 within the “other liabilities”).

For any individual contract, either a contract asset or a contract liability is presented on a net basis.
The distinction between non-current and current presentation remains unchanged.
12

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

The following tables summarise the impacts on the comparative information resulting from the change in revenue recognition principles:
Condensed IFRS Consolidated Statements of Financial Position as at 31 December 2017
As previously
reported

IFRS 15

As restatedNon-current assets
Intangible assets
Property, plant and equipment
Investments accounted for under the equity method
Non-current contract assets
Non-current other assets
Total non-current assets

11,62916,6101,678
024,02453,941

0
0
(61)
1
(355)
(415)

11,62916,6101,617
123,66953,526

Current assets
Inventories
Trade receivables
Current contract assets
Current other assets
Cash and cash equivalents
Total current assets
Total assets

31,464
8,358
0
8,158
12,01659,996113,9370(1,727)(2,871)2,120
30
0(2,448)(2,863)29,737
5,487
2,120
8,188
12,01657,548111,074

13,351(2,609)10,742

10,153034,30244,455(374)
15,353(17,272)(2,293)

9,779
15,353
17,03042,162

6,575
13,444036,11256,131
100,586
113,937(303)(38)
28,227(25,847)
2,039
(254)
(2,863)

6,272
13,40628,227
10,26558,170100,332
111,074(In € million)

Equity and liabilities
Total equity
Liabilities
Non-current liabilities
Non-current provisions
Non-current contract liabilities
Non-current other liabilities
Total non-current liabilities
Current liabilities
Current provisions
Trade liabilities
Current contract liabilities
Current other liabilities
Total current liabilities
Total liabilities
Total equity and liabilities

Condensed IFRS Consolidated Income Statements for the six-month period ended 30 June 2017
(In € million)

Revenue
Cost of sales
Gross margin
Selling, administrative and other expenses
Research and development expenses
Other income
Share of profit from investments accounted for under the equity method
and other income from investment
Profit before financial result and income taxes (EBIT)
Total financial result
Income taxes
Profit for the period

13

As previously
reported
28,709(25,341)
3,368(1,322)(1,288)787

IFRS 15(3,534)
2,951
(583)
0
0
0

As restated
25,175(22,390)
2,785(1,322)(1,288)
787

246
1,791
66
(354)
1,503

3
(580)
6
162
(412)

249
1,211
72
(192)
1,091

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

IFRS 9 “Financial Instruments”
IFRS 9, published in July 2014, replaces the existing guidance in IAS 39 “Financial instruments: recognition and measurement”. IFRS 9
includes revised guidance on the classification and measurement of financial instruments, including a new expected credit loss model
for calculating impairment on financial assets, and the new general hedge accounting requirements. It also carries forward the guidanceon recognition and de-recognition of financial instruments from IAS 39.
The Company adopted the new standard on 1 January 2018 and has elected to apply the limited exemption in IFRS 9 relating totransition for classification and measurement and impairment, and accordingly has not restated comparative periods in the year of initial
application. As a consequence, any adjustments to carrying amounts of financial assets or liabilities are recognised at the beginning of
the reporting period, with the difference recognised in opening equity.
Classification and Measurement
From 1 January 2018, the Company classifies its financial assets according to IFRS 9 using the following measurement categories:-

those to be measured at amortised cost; and-those to be measured subsequently at fair value (either through other comprehensive income or through profit and loss).

The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash
flows.
Financial assets at amortised cost — This category comprises assets that are held for collection of contractual cash flows where
those cash flows represent solely payments of principal and interest. It includes trade receivables.
Financial assets at fair value through other comprehensive income — This category comprises:(i)

Equity investments that are not held for trading. With the exception of dividends received, the associated gains and losses(including any related foreign exchange component) are recognised in OCI. Unlike the treatment of “available-for-sale” equity
investments under IAS 39, amounts presented in OCI are not subsequently transferred to profit and loss on de-recognition of theequity investment nor in the event of an impairment. The Company has re-measured non-listed equity investments for which noquoted market prices are available at fair value and determined the fair values of these equity investments using valuation methods
such as net asset values or a comparable company valuation multiples technique.

(ii)

Debt instruments where contractual cash flows are solely payments of principal and interest, and that are held both for sales andcollecting contractual cash flows. These instruments include the bond securities portfolio and are measured in a manner similar to
the “available-for- sale” debts instruments under IAS 39.

Financial assets at fair value through profit and loss — This category comprises all other financial assets –derivative instruments for
instance- that are to be measured at fair value (including equity investments for which the Company did not elect to present changes infair value in other comprehensive income).
The impact of IFRS 9 on the classification and measurement of financial assets is set out in the “measurement categories of financial
instruments” table.
Impairment
From January 2018, the company assesses on a forward-looking basis the expected credit losses associated with its debt instruments
carried at amortised cost and FVOCI. The Company applies the low credit risk exemption allowing the Company to assume that there isno significant increase in credit risk since initial recognition of a financial instrument if the instrument is determined to have low credit
risk at the reporting date. Similarly, the Company has determined that its trade receivables and contract assets generally have low credit
risk. The Company has applied the simplified approach permitted by IFRS 9 of measuring expected credit losses of trade receivables
and contract assets on a lifetime basis from initial recognition.
Hedge Accounting
Hedging instruments in place as at 31 December 2017 qualify as hedges under IFRS 9. The Company’s risk management strategies
and hedge documentation are aligned with the requirement of the new standard and hedge accounting continues to apply.
With the adoption of IFRS 9, the Company accounts for changes in the time value of its foreign currency options as a cost of hedging
through other comprehensive income and recognizes them as a separate component of equity. The cumulative cost-of-hedging will bereclassified to profit or loss when the hedged transaction affects profit or loss.
Applying the cost-of-hedging guidance to foreign currency options retrospectively results in an increase of the 2018 opening balance ofaccumulated other comprehensive income by € +172 million on a net of tax basis and a corresponding decrease of the opening balanceof retained earnings. As a result, retrospective application does not change the total equity as of 1 January 2018 that would otherwise
have been reported.

14

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

New Hedge Strategy
As of 30 June 2018, the Company adopted a new hedge strategy to hedge its net exposure (US dollar revenue less US dollar cost)
resulting from commercial aircraft deliveries of specific aircraft types. The strategy more closely aligns hedge accounting with risk
management activities.
Under the new strategy the foreign exchange derivatives used as hedging instruments are designated as a hedge of a portion of the
cash flows received for each of a number of deliveries of a specific aircraft type that are expected to occur in a given month. In contrast
to the first flow approach that was previously used (which is described in Note 35.1 to the 2017 IFRS Consolidated Financial
Statements), the new strategy assigns the hedging instruments to a specified number of monthly deliveries of a specific aircraft type,and hence will allow the hedge result to move along with the hedged deliveries in the event of a shift in deliveries.
If such a shift in hedged deliveries occurs, hedge ineffectiveness will arise to the extent the maturities of the hedging instrument and the
expected timing of the hedged cash flows are no longer perfectly aligned. In order to minimise such ineffectiveness the Company willclose the timing gap by rolling over hedges to new maturities, using foreign exchange swap contracts. The hedge results will movealong with the hedged deliveries. In addition, the Company will designate the risk of changes in the spot element as the hedged risk inorder to eliminate the ineffectiveness resulting from changes in forward points between different maturities. The forward element will be
accounted for as a cost of hedging similar to the time value of options.
According to the prospective application requirement of IFRS 9, the fair values of the legacy portfolio in place at inception of the newstrategy continue to be assigned to the previous first flow hedge regime and remain in the hedge reserve in other comprehensive
income, to be recognised in profit and loss only at maturity of the originally hedged cash flows (unless those cash flows are no longer
expected to occur).
As a result of prospective application, the hedging instruments designated under the new strategy will have a non-zero fair value athedge inception, which may create some small ineffectiveness.
Another source of ineffectiveness will be the counterparty credit risk inherent in the hedge portfolio, as such credit risk is absent from thehedged cash flows. However, since netting arrangement are in place with all the hedge counterparties and the Company has a policy of
trading with investment grade counterparties only, the credit risk arising from its hedging instruments, and associated changes in credit
risk, have historically been negligible and are expected to remain so.
The hedging strategies otherwise used by the group are essentially the same as those used before transition to IFRS 9 and aredescribed in detail in Note 35.1 to the 2017 IFRS Consolidated Financial Statements. In some cases, the currency basis spread was
excluded from the hedge on transition to IFRS 9 in order to improve hedge effectiveness. Changes in the currency basis spread will be
accounted for as a cost of hedging similar to the time value of options. This change in the hedge designation had no impact on othercomprehensive income or equity as of 1 January 2018, nor will it affect future profit and loss when the hedges mature (unlessexceptional circumstances apply).
IFRS 9 Total Equity Impacts
The total impact on the Company’s equity due to IFRS 9 as at 1 January 2018 is as follows:(In € million)

Opening equity - IAS 39
Increase in expected loss allowance for trade receivables and contract assets
Increase in expected loss allowance for other financial assets
Deferred tax effects
Adjustment to equity from adoption of IFRS 9Opening equity – IFRS 9

15

1 January 2018
10,742
(7)
(4)
3
(8)
10,734

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

The following table shows the measurement categories of financial instruments:(In € million)

Measurement
categories according
to IAS 39

Measurement
Carrying amount
Carrying amount
categories according according to IAS 39 at according to IFRS 9 at
to IFRS 9
31 December 2017
1 January 2018

AssetsOther investments and other long-term
financial assets
Fair value through OCI
Equity investments

Customer financings
Other loans
Trade receivables (1)Other financial assets
Derivative instruments (2)Non-derivative instruments
Securities

Cash and cash equivalents

Available-for-sale

Fair value throughprofit and loss

1,088
2,441
1,353

Fair value throughprofit and loss
Amortised cost
Amortised cost

771
1,521
5,487

771
1,521
5,487

Fair value throughFair value throughprofit and loss
profit and loss
Loans and receivables
Amortised cost
Available-for-sale Fair value through OCI

3,564
1,395
12,571

3,564
1,395
12,571

6,256

6,256
900

Loans and receivables
Loans and receivables
Loans and receivables

Fair value throughprofit and loss

Fair value throughprofit and loss
Fair value through OCI

Available-for-saleLoans and receivables

Fair value throughprofit and loss
Amortised cost

Amortised cost

2,085
3,675
39,766

1,185
3,675
39,766

Amortised cost

(7,063)(7,063)

Amortised cost
Other

Amortised cost
Other

(3,792)(342)(3,792)(342)

Fair value throughprofit and loss

Fair value throughprofit and loss

(2,271)(2,271)

Amortised cost
Amortised cost
Amortised cost

Amortised cost
Amortised cost
Amortised cost

(5,901)(582)(13,406)(33,357)(5,901)(582)(13,406)(33,357)

Total (1)Liabilities
Financing liabilities
Issued bonds and commercial
papersLiabilities to banks and otherfinancing liabilities (1)Finance lease liabilities
Other financial liabilities
Derivative instruments (2)European Government refundable
advances
Others (1)Trade liabilities (1)Total (1)(1)(2)

Previous year figures are restated due to the application of IFRS 15.
Most derivative instruments are designated as hedging instruments in cash flow hedges.

IFRS 16 “Leases”
The application of IFRS 16 is mandatory for the first interim period beginning on or after 1 January 2019. The standard introduces asingle, on-balance sheet lease accounting model for lessees, as the distinction between operating and finance lease is removed. Under
IFRS 16, a lessee recognises a right-of-use asset representing its right to the underlying asset and a lease liability representing its
obligation to make future lease payments. The only exemptions are short-term and low-value asset leases.
The standard will affect primarily the accounting for operating leases where the Company is a lessee. The accounting for lessors will notchange significantly: lessors must continue to distinguish between finance and operating lease.
The detailed assessment of IFRS 16 impact on operating leases and on the Company’s Consolidated Financial Statements is currently
in progress. The preliminary outcome of the data collection process is that the Company’s main operating leases seem to be limited toreal estate assets, company cars and equipment. In parallel, the Company has initiated the implementation of an IT tool to be used bothto manage the Company’s leases and to generate IFRS 16 calculations. So far, the most significant potential impact identified by theCompany relates to its operating leases of real estate assets (such as land, warehouses, storage facilities and offices).
The final impact of IFRS 16 on the Consolidated Financial Statements in the period of initial application will depend on future economic
conditions under assessment, the composition of the lease portfolio at that date and the estimation of the lease terms.

16

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

Use of Estimates and Judgements
In preparing the Unaudited Condensed Interim IFRS Consolidated Financial Statements, management makes assumptions andestimates. The underlying assumptions used for the main estimates are similar to those described in the Company’s IFRS Consolidated
Financial Statements as of 31 December 2017. These estimates are revised if the underlying circumstances have evolved or in light of
new information.
The only exception is the estimate of income tax liabilities which is determined in the interim financial statements using the estimatedaverage annual effective income tax rate applied to the pre-tax income of the interim period.

3.

Acquisitions and Disposals

Acquisitions
On 16 October 2017, Airbus, Bombardier Inc. (“Bombardier”) and Investissement Québec (“IQ”) signed an agreement that brings
together Airbus’ global reach and scale with Bombardier’s newest, state-of-the-art jet aircraft family. Under the agreement, Airbus will
provide procurement, sales and marketing, and customer support expertise to the C Series Aircraft Limited Partnership (“CSALP”), theentity that manufactures and sells the C Series. The partnership brings together two complementary product lines.
On 8 June 2018, having received all required regulatory approvals, Airbus, Bombardier and IQ have agreed to close the C Seriestransaction effective on 1 July 2018.
On 1 July 2018, Airbus has taken the control of C-Series programme by acquiring 50.01% Class-A ownership units in CSALP.
Bombardier and IQ will own approximately 34% and 16%, respectively. Airbus will consolidate CSALP effective from 1 July 2018
onwards. At closing, Airbus paid US$ 1 per share to assume a net liability. The purchase price allocation has not been completed yet.
Technology, inventories are the main assets acquired. Airbus will assume the liabilities of CSALP which are mainly relative to onerous
contract provisions, unfavourable contract margins and trade payables. The allocation of the purchase price is on-going. Airbus will use
the full goodwill approach to account for this transaction. As a result, Bombardier’s and IQ interests in CSALP will be measured at theirestimated fair value.
Airbus will benefit from call rights in respect of all of Bombardier’s interest in CSALP at fair market value, with the amount for non-voting
participating shares used by Bombardier capped at the invested amount plus accrued but unpaid dividends, including a call right
exercisable no earlier than 7.5 years following the closing, except in the event of certain changes in the control of Bombardier, in whichcase the right is accelerated. Bombardier will benefit from a corresponding put right whereby it could require that Airbus acquire its
interest at fair market value after the expiry of the same period. IQ will also benefit from tag along rights in connection with a sale byBombardier of its interest in the partnership.
At exercise of put/call options, Airbus and Bombardier each to select an internationally recognised independent investment banks toperform valuation. If midpoints of first 2 valuation firms represent a deviation of 10% or less from the lowest midpoint, then Fair Market
Value will equal the mean of such 2 midpoints. If midpoints of the first 2 valuation firms represent a deviation of more than 10% from thelowest midpoint, then Fair Market Value will equal the mean of midpoints of a third valuation firm and the other valuation firm whose
midpoint is closest to midpoint of such third valuation firm.
Airbus will recognise a financial liability at fair value for those puttable instruments for the estimated exercise price of the written put
options on non-controlling interests (Bombardier put option and IQ Tag along). Changes in the fair value of the liability will be recognised
directly in equity.
Bombardier will continue with its current funding plan of CSALP. Bombardier will fund the cash shortfalls of CSALP, if required, during
the second half of 2018, up to a maximum of US$ 225 million; during 2019, up to a maximum of US$ 350 million; and up to a maximum
aggregate amount of US$ 350 million over the following two years, in consideration for non-voting participating shares of CSALP.
The transaction has been approved by the Boards of Directors of both Airbus and Bombardier, as well as the Cabinet of theGovernment of Québec. The partnership’s head office, primary assembly line and related functions will be based in Mirabel, Québec(Canada).
Disposals
On 7 March 2018, the Company finalised the sale of Plant Holdings, Inc., held by the Airbus DS Communications Inc. business, toMotorola Solutions after receiving the required regulatory approvals. Airbus Defence and Space recognised a gain of € 159 million,
reported in other income.
Assets and Disposal Groups Classified as Held for Sale
As of 30 June 2018, the Company accounted for assets and disposal groups of assets classified as held for sale in the amount of€ 35 million (prior year-end: € 202 million).

4.

Related Party Transactions

The Company has entered into various transactions with related entities that have all been carried out in the normal course of business.
The Company participates in the UK in several funded trustee-administered pension plans, some of which have BAE Systems as
principal employer.
17

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

5.

Segment Information

The Company operates in three reportable segments which reflect the internal organisational and management structure according to
the nature of the products and services provided.


Airbus (formerly Airbus Commercial Aircraft and Headquarters) — Development, manufacturing, marketing and sale ofcommercial jet aircraft of more than 100 seats; aircraft conversion and related services; development, manufacturing, marketingand sale of regional turboprop aircraft and aircraft components. It also includes the holding function of the Company and its bankactivities.



Airbus Helicopters — Development, manufacturing, marketing and sale of civil and military helicopters; provision of helicopter
related services.



Airbus Defence and Space — Military Aircraft design, development, delivery, and support of military aircraft such as combat,
mission, transport and tanker aircraft as well as Unmanned Aerial systems and their associated services. Space Systems design,development, delivery, and support of full range of civil and defence space systems for telecommunications, earth observations,navigation, science and orbital systems. Communication, Intelligence & Security provision of services around data processing fromplatforms, secure communication and cyber security. In addition, the main joint ventures design, develop, deliver, and support
missile systems as well as space launcher systems.

The following tables present information with respect to the Company’s business segments. As a rule, inter-segment transfers arecarried out on an arm’s length basis. Inter-segment sales predominantly take place between Airbus and Airbus Defence and Space andbetween Airbus Helicopters and Airbus. Other activities not allocable to the reportable segments, together with consolidation effects, aredisclosed in the column “Transversal/Eliminations”.
The Company uses EBIT as a key indicator of its economic performance.
Business segment information for the six-month period ended 30 June 2018 is as follows:(In € million)

Total revenue
Internal revenue
Revenue
thereof:sales of goods at a point in timesales of goods over time
services, including sale of spare parts
Profit (loss) before financial result and income
taxes (EBIT)
thereof research and development expenses
Interest result
Other financial result
Income taxes
Profit for the period

Airbus18,546(379)
18,167

AirbusHelicopters
2,388
(199)
2,189

AirbusDefence and
Space
4,652
(38)
4,614

Transversal /Eliminations
0
0
0

Consolidated
Airbus
25,586(616)
24,97016,749
9
1,409

973
216
1,000

1,251
1,879
1,484

0
0
0

18,973
2,104
3,893

773
(975)

114
(147)

382
(136)

(149)
(145)

1,120
(1,403)
(112)
(191)
(324)
493

Airbus
18,182(317)
17,865

AirbusHelicopters
2,716
(257)
2,459

AirbusDefence and
Space
4,900
(49)
4,851

Transversal /Eliminations
0
0
0

Consolidated
Airbus25,798(623)
25,175

16,449
0
1,416

1,037
165
1,257

1,112
2,285
1,454

0
0
0

18,598
2,450
4,127

381
(894)

80
(142)

832
(144)

(82)
(108)

1,211
(1,288)
(170)
242
(192)
1,091

Business segment information for the six-month period ended 30 June 2017 is as follows: (1)(In € million)

Total revenue
Internal revenue
Revenue
thereof:sales of goods at a point in timesales of goods over time
services, including sale of spare parts
Profit (loss) before financial result and income
taxes (EBIT)
thereof research and development expenses
Interest result
Other financial result
Income taxes
Profit for the period(1)Previous year figures are restated due to the application of IFRS 15.

18

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

6.

Revenue, Gross Margin and Profit before Financial Result and Income
Taxes

Revenue decreased by € -205 million to € 24,970 million (first half-year 2017 (restated): € 25,175 million), mainly due to a decrease at
Airbus Helicopters (€ -328 million) and Airbus Defence and Space (€ -248 million), partly offset by an increase at Airbus (€ +364 million).
Revenue by geographical areas based on the location of the customer is as follows:
1 January 30 June 2018
8,001
6,748
5,167
2,896
546
1,612
24,970(In € million)

EuropeAsia-PacificNorth America
Middle East
Latin America
Other Countries
Total
(1)

1 January 30 June 2017
7,744
8,202
4,333
2,908
222
1,766
25,175Previous year figures are restated due to the application of IFRS 15.

The gross margin increased by € +455 million to € 3,240 million compared to € 2,785 million in the first half-year 2017 (restated). The
gross margin rate increased from 11.1% (restated) to 13.0%.
In the first half-year 2018, Airbus has delivered 40 A350 XWB aircraft. New order intakes, cancellations, delivery postponements andother contractual agreements to the end of June 2018 have been reflected in the financial statements.
The industrial ramp-up is progressing and associated risks continue to be closely monitored in line with the schedule, aircraft
performance and overall cost envelope, as per customer commitments. Despite the progress made, challenges remain with recurring
cost convergence as the ramp-up continues.
8 A400M aircraft were delivered in 2018. In total, 65 aircraft have been delivered as of 30 June 2018.The Company continued with
development activities toward achieving the revised capability roadmap. Retrofit activities are progressing.
In 2017, the Company entered into discussions with OCCAR and the customer Nations that resulted in the signature of a Declaration ofIntent (“DOI”) on 7 February 2018 agreeing on a global re-baselining of the contract, including a revised aircraft delivery schedule, an
updated technical capability roadmap and a revised retrofit schedule. The DOI represents an important step towards reaching acontractually binding agreement also mitigating the commercial exposure while satisfying customer needs with regard to capabilities andavailability of the aircraft. The Company is working together with OCCAR and the customer Nations on turning the DOI into a contract
amendment within 2018.
A detailed review of the programme concluded in the fourth quarter of 2017 including an estimate of the financial impacts of the above
mentioned adaptations on schedule, capabilities and retrofit resulted in an update of the loss making contract provision of € 1,299 million
for the year 2017, thereof € 1,149 million in the fourth quarter 2017 (restated equivalent loss following the implementation of IFRS 15
was € 992 million for the year 2017, thereof € 726 million in the fourth quarter 2017). Risks remain on development of technicalcapabilities and the associated costs, on securing sufficient export orders in time, on aircraft operational reliability in particular withregards to engine, and on cost reductions as per the revised baseline. The year end 2017 assessment remains operationally unchanged
as of 30 June 2018. A technical update during the first half-year 2018 reflecting price escalation resulted in a charge of € 98 million.
The A400M contractual SOC 1, SOC 1.5, SOC 2, SOC 2.5 and SOC 3 development milestones remain to be achieved. SOC 1 fell due
end October 2013, SOC 1.5 fell due end December 2014, SOC 2 end of December 2015 and SOC 2.5 end of October 2017. The
associated termination rights became exercisable by OCCAR on 1 November 2014, 1 January 2016, and 1 January 2017, respectively.
Management judges that it is highly unlikely that any of these termination rights will be exercised.
The profit before financial result and income taxes decreased by € -91 million to € 1,120 million compared to € 1,211 million in thefirst half-year 2017 (restated), mainly driven by a decrease in other income.
Other income decreased by € -477 million to € 310 million compared to € 787 million in the first half-year 2017, which included thecapital gain from the sale of the defence electronics business and the completion of the allocation of the purchase price of ArianeGroupat Airbus Defence and Space.

7.

Total Financial Result

Total financial result deteriorated by € -375 million to € -303 million compared to € 72 million in the first half-year 2017. This is mainly
due to the negative impact from foreign exchange valuation of monetary items, partly offset by the net effect of the change of treatmentof certain financial instruments under IFRS 9.

19

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 20188.

Income Taxes

The income tax expense of € -324 million (first half-year 2017 (restated): € -192 million) corresponds to an effective tax rate of 39.7%(first half-year 2017 (restated): 15.0%). This includes a deferred tax asset impairment, partially offset by the sale of Plant Holdings, Inc.
(see “– Note 3: Acquisitions and Disposals”) and the revaluation of certain equity investments under IFRS 9 (see “– Note 2: Accounting
Policies”), both tax-free.

9.

Earnings per ShareProfit for the period attributable to equity owners of the parent (Net income) (1)Weighted average number of ordinary shares
Basic earnings per share (1)(1)

1 January 30 June 2018
€ 496 million
774,129,413€ 0.64

1 January 30 June 2017
€ 1,091 million
773,223,614€ 1.41

Previous year figures are restated due to the application of IFRS 15.

Diluted earnings per share – The Company’s categories of dilutive potential ordinary shares are share-settled Performance Units
relating to Long-Term Incentive Plans (“LTIP”) and the convertible bond issued on 1 July 2015. During the first half-year 2018, theaverage price of the Company’s shares exceeded the exercise price of the share-settled Performance Units and therefore 672,955
shares (first half-year 2017: 461,810 shares) were considered in the calculation of diluted earnings per share. The dilutive effect of theconvertible bond was also considered in the calculation of diluted earnings per share in the first half-year 2018, by adding back € 3
million of interest expense to the profit for the period attributable to equity owners of the parent (first half-year 2017: € 3 million) and byincluding 5,022,990 of dilutive potential ordinary shares.

Profit for the period attributable to equity owners of the parent (Net income) (1)Weighted average number of ordinary shares (diluted) (2)Diluted earnings per share (1)(1)(2)

1 January 30 June 2018
€ 499 million
779,825,358€ 0.64

1 January 30 June 2017
€ 1,094 million
778,708,414€1.40

Previous year figures are restated due to the application of IFRS 15.
Dilution assumes conversion of all potential ordinary shares.

10.

Intangible Assets and Property, Plant and Equipment

Intangible assets decreased by € -48 million to € 11,581 million (prior year-end: € 11,629 million). Intangible assets mainly relate to
goodwill of € 9,141 million (prior year-end: € 9,141 million).
Property, plant and equipment decreased by € -134 million to € 16,476 million (prior year-end (restated): € 16,610 million) mainly at
Airbus (€ -95 million). Property, plant and equipment includes leased assets of € 62 million (prior year-end: € 52 million).

11.

Investments Accounted for under the Equity Method

Investments accounted for under the equity method decreased by € -105 million to € 1,512 million (prior year-end (restated):€ 1,617 million) and mainly include the equity investments in ArianeGroup, MBDA and ATR.

12.

Other Investments and Other Long-Term Financial Assets(In € million)

Other investments
Other long-term financial assets
Total non-current other investments and other long-term financial assets
Current portion of other long-term financial assets
Total

30 June 2018
2,693
1,616
4,309
564
4,873

31 December 2017
2,441
1,763
4,204
529
4,733

Other investments mainly comprise the Company’s participations. The significant participations at 30 June 2018 include the remaining
investment in Dassault Aviation amounting to € 1,347 million (prior year-end: € 1,071 million).
Other long-term financial assets and the current portion of other long-term financial assets include other loans in the amount of€ 1,458 million as of 30 June 2018 (prior year-end: € 1,521 million), and the sales finance activities in the form of finance leasereceivables and loans from aircraft financing.
20

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 201813.

Inventories

Inventories of € 33,775 million (prior year-end (restated): € 29,737 million) increased by € +4,038 million. This is mainly driven by Airbus(€ +3,302 million), and reflects an increase in work in progress associated with A320 programme ramp-up, and Airbus Defence andSpace (€ +506 million).

14.

Contract Assets, Contract Liabilities and Trade Receivables

As of 30 June 2018, contract assets include receivables from revenue recognised on overtime contracts in the amount of € 10,616
million (prior year-end: € 11,349 million) and contract liabilities include customer advance payment received in the amount of € 49,482
million (prior year-end: € 47,580 million).

15.

Provisions(In € million)

30 June 2018
8,447
7,080
15,527
9,843
5,684

Provisions for pensions
Other provisions
Total
thereof non-current portion
thereof current portion

31 December 2017
8,361
7,690
16,051
9,779
6,272

Other provisions are presented net of programme losses against inventories (see “– Note 13: Inventories”).
A restructuring provision associated with the re-organisation of the Company of € 160 million was recorded at year-end 2016, following
the communication of the plan to the employees and the European Works Council in November 2016. The French social plan wasagreed between the Company and the works council in June 2017. The German social plan was agreed between the Company and theworks councils in September 2017, and the reconciliation of interests were finalized on 21 February 2018
In Airbus Helicopters, the restructuring plan launched in 2016 was signed by the three representative trade unions and validated by theWork Administration Agency (DIRECCTE) in March 2017.
An H225 Super Puma helicopter was involved in an accident on 29 April 2016. Management is cooperating fully with the authorities todetermine the precise cause of the accident. An estimate of the related net future costs has been prepared and is included in otherprovisions.

16.

Other Financial Assets and Other Financial Liabilities

Other Financial Assets(In € million)

30 June 2018
1,546
88
1,634
931
467
426
1,824
3,458

Positive fair values of derivative financial instruments
OthersTotal non-current other financial assets
Receivables from related companies
Positive fair values of derivative financial instruments
OthersTotal current other financial assets
Total

21

31 December 2017
2,901
79
2,980
992
663
324
1,979
4,959

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

Other Financial Liabilities(In € million)

30 June 2018
851
5,359
40
6,250
1,321
392
208
322
2,243
8,493

Liabilities for derivative financial instruments
European Governments refundable advances
Others (1)Total non-current other financial liabilities (1)Liabilities for derivative financial instruments
European Governments refundable advances
Liabilities to related companies (1)OthersTotal current other financial liabilities (1)Total (1)(1)

31 December 2017
1,127
5,537
40
6,704
1,144
364
199
343
2,050
8,754

Previous year figures are restated due to the application of IFRS 15.

17.

Other Assets and Other Liabilities

Other Assets(In € million)

30 June 2018
882
28
69
979
2,422
499
304
559
3,784
4,763

Cost to fulfil a contract (1)Prepaid expenses (1)Others (1)Total non-current other assets (1)Value added tax claims
Cost to fulfil a contract (1)Prepaid expenses (1)OthersTotal current other assets (1)Total (1)(1)

31 December 2017
868
15
92
975
1,892
522
146
377
2,937
3,912

Previous year figures are restated due to the application of IFRS 15.

Other Liabilities(In € million)

30 June 2018
310
310
1,829
2,699
4,528
4,838

Others (1)Total non-current other liabilities (1)Tax liabilities (excluding income tax)
OthersTotal current other liabilities (1)Total (1)(1)

Previous year figures are restated due to the application of IFRS 15.

22

31 December 2017
298
298
1,397
2,512
3,909
4,207

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 201818.

Total Equity

The Company’s shares are exclusively ordinary shares with a par value of € 1.00. The following table shows the development of thenumber of shares issued and fully paid:
30 June 2018774,556,062
1,317,465
00775,873,527(679,940)
775,193,587(In number of shares)

Issued as at 1 January
Issued for ESOP
Issued for exercised options
Cancelled
Issued at end of period
Treasury shares
Outstanding at end of period

31 December 2017
772,912,869
1,643,193
00774,556,062(129,525)
774,426,537

Holders of ordinary shares are entitled to dividends and to one vote per share at general meetings of the Company.
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts to € 9,199 million (prior year-end(restated): € 10,740 million) representing a decrease of € -1,541 million. This is due to a dividend payment of € -1,161 million (€ 1.35 pershare), and a decrease in other comprehensive income of € -974 million, principally related to the mark to market revaluation of thehedge portfolio of € -866 million, partly compensated by a net income for the period of € 496 million.
The non-controlling interests (“NCI”) from non-wholly owned subsidiaries decreased to € -8 million as of 30 June 2018 (prior year-end:€ 2 million).

19.

Net Cash

The net cash position provides financial flexibility to fund the Company’s operations, to react to business needs and risk profile and toreturn capital to the shareholders.

(In € million)

Cash and cash equivalents
Current securities
Non-current securities
Gross cash position
Short-term financing liabilities
Long-term financing liabilities
Total

30 June 2018
5,138
2,086
10,551
17,775(2,071)(7,636)8,068

31 December 201712,016
1,627
10,944
24,587(2,213)(8,984)
13,39030 June 2018
1,446
2,107
1,599
(14)
5,138
0
5,138

31 December 2017
3,672
6,256
2,085
8
12,021
5
12,016

Cash and Cash Equivalents
Cash and cash equivalents are composed of the following elements:(In € million)

Bank account and petty cash
Short-term securities (at fair value through profit and loss)
Short-term securities (at fair value through other comprehensive income) (1)OthersTotal cash and cash equivalents
Recognised in disposal groups classified as held for sale
Recognised in cash and cash equivalents(1)

IFRS 9 new classification category (prior year-end: available-for-sale).

Only securities with a maturity of three months or less from the date of the acquisition, that are readily convertible to known amounts ofcash and which are subject to an insignificant risk of changes in value, are recognised in cash equivalents.

23

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

Financing Liabilities(In € million)

30 June 2018
6,557
351
410
317
1
7,636
502
97
129
17
1,326
2,071
9,707

Bonds
Liabilities to financial institutions
Loans
Liabilities from finance leases
Others (1)Long-term financing liabilities
Bonds
Liabilities to financial institutions
Loans
Liabilities from finance leases
Others (1)Short-term financing liabilities
Total
(1)

31 December 2017
6,551
1,722
385
325
1
8,984
512
290
144
17
1,250
2,213
11,197

Included in “others” are financing liabilities to joint ventures.

Long-term financing liabilities, mainly comprising bonds and liabilities to financial institutions, decreased by € -1,348 million to € 7,636
million (prior year-end: € 8,984 million), mainly as a result of early settlement of liabilities to financial institutions with the European
Investment Bank (“EIB”).
Short-term financing liabilities decreased by € -142 million to € 2,071 million (prior year-end: € 2,213 million).

20.

Information about Financial Instruments

The following table presents the composition of derivative financial instruments:(in € million)

30 June 2018
1,546
467
2,013
(851)
(1,321)(2,172)(159)

Non-current positive fair values
Current positive fair values
Total positive fair values of derivative financial instruments
Non-current negative fair values
Current negative fair values
Total negative fair values of derivative financial instruments
Total net fair values of derivative financial instruments

31 December 2017
2,901
663
3,564
(1,127)(1,144)(2,271)
1,293

The total net fair value of derivative financial instruments decreased by € -1,476 million to € -183 million (prior year-end: € 1,293 million)
as a result of the strengthened US dollar versus the euro associated with the mark to market valuation of the hedge portfolio.
The volume of hedged US dollar-contracts was US$ 80.3 billion as at 30 June 2018 (prior year-end: US$ 88.7 billion). The US dollar
spot rate was 1.17 US$/€ and 1.20 US$/€ at 30 June 2018 and at 31 December 2017, respectively. The average US dollar hedge rate
for the hedge portfolio of the Company remains at 1.23 US$/€ as at 30 June 2018.

Carrying Amounts and Fair Values of Financial Instruments
Fair values of financial instruments have been determined with reference to available market information at the end of the reporting
period and the valuation methodologies as described in detail in Note 35.2 to the 2017 IFRS Consolidated Financial Statements. For the
first half-year 2018, the Company has applied the same methodologies for the fair value measurement of financial instruments. In
addition, the Company has remeasured non-listed equity investments for which no quoted market prices are available at fair value anddetermined the fair values of these equity investments using common valuation methods such as net asset values or a comparable
company valuation multiples technique.
Carrying amount is a reasonable approximation of fair value for all classes of financial instruments listed in the first table of Note 35.2 tothe 2017 IFRS Consolidated Financial Statements, with the exception of:(In € million)

Financing liabilities
Issued bonds and commercial papers
Liabilities to banks and other financing liabilities

30 June 2018
Book Value
Fair Value(7,059)(2,314)24(7,261)(2,328)31 December 2017
Book Value
Fair Value(7,063)(3,791)(7,363)(3,838)

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

Fair Value Hierarchy
Depending on the extent the inputs used to measure fair values rely on observable market data, fair value measurements may behierarchised according to the following levels of input:Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities;

Level 2: inputs other than quoted prices that are observable for the asset or liability – fair values measured based on Level 2
input typically rely on observable market data such as interest rates, foreign exchange rates, credit spreads or volatilities;

Level 3: inputs for the asset or liability that are not based on observable market data – fair values measured based on Level 3
input rely to a significant extent on estimates derived from the Company’s’ own data and may require the use of assumptions
that are inherently judgemental and involve various limitations.

The fair values disclosed for financial instruments accounted for at amortised cost reflect Level 2 input. Otherwise, fair values are
determined mostly based on Level 1 and Level 2 input and to a minor extent on Level 3 input.
The following table presents the carrying amounts of the financial instruments held at fair value across the three levels of the fair value
hierarchy:(In € million)

Level 1

Financial assets measured at fair value
Equity instruments
Derivative instruments
Securities
Cash equivalents
Total
Financial liabilities measured at fair value
Derivative instruments
Total

21.

30 June 2018
Level 2
Level 3

Total

Level 131 December 2017
Level 2
Level 3

Total

2,224
0
10,5972,107
14,928

0
2,013
2,040
1,599
5,652

0
0
0
0
0

2,224
2,013
12,637
3,706
20,5801,963
010,995
6,256
19,214

0
3,564
1,576
2,085
7,225

0
0
0
0
0

1,963
3,564
12,571
8,341
26,43900(2,090)(2,090)(28)(28)(2,118)(2,118)00(2,268)(2,268)(3)(3)(2,271)(2,271)

Litigation and Claims

The Company is involved from time to time in various legal and arbitration proceedings in the ordinary course of its business, the mostsignificant of which are described below. Other than as described below, the Company is not aware of any material governmental, legal
or arbitration proceedings (including any such proceedings which are pending or threatened), during a period covering at least theprevious twelve months which may have, or have had in the recent past significant effects on Airbus SE’s or the Company’s financial
position or profitability.
If the Company concludes that the disclosures relative to contingent liabilities can be expected to prejudice seriously its position in a
dispute with other parties, the Company limits its disclosures to the nature of the dispute.

WTO
Although the Company is not a party, the Company is supporting the European Commission in litigation before the WTO. Following its
unilateral withdrawal from the 1992 EU-US Agreement on Trade in Large Civil Aircraft, the US lodged a request on 6 October 2004 to
initiate proceedings before the WTO. On the same day, the EU launched a parallel WTO case against the US in relation to its subsidies
to Boeing. On 19 December 2014, the European Union requested WTO consultations on the extension until the end of 2040 of
subsidies originally granted by the State of Washington to Boeing and other US aerospace firms until 2024.
On 1 June 2011, the WTO adopted the Appellate Body’s final report in the case brought by the US assessing funding to Airbus from
European governments. On 1 December 2011, the EU informed the WTO that it had taken appropriate steps to bring its measures fully
into conformity with its WTO obligations, and to comply with the WTO’s recommendations and rulings. Because the US did not agree,
the matter was referred to the WTO for further review pursuant to WTO rules. A decision was published in May 2018 in which the WTO
clarified that the EU and the Company have achieved compliance in respect of the majority of the subsidies at issue but considered thatsome remaining obligations required minor adjustments, which have since been addressed by the EU. Because the US did not agree on
the EU compliance efforts, the US requested the resumption of Article 22.6 arbitration proceedings to quantify the amount ofcountermeasures against the EU. The Company has worked with the European Commission and the Member State governments tofully implement the new WTO findings and will assert that the new measures taken render the sanctions request moot.
On 23 March 2012, the WTO adopted the Appellate Body’s final report in the case brought by the EU assessing funding to Boeing fromthe US. On 23 September 2012, the US informed the WTO that it had taken appropriate steps to bring its measures fully into conformity
with its WTO obligations, and to comply with the WTO’s recommendations and rulings. Because the EU did not agree, the matter is now
under WTO review pursuant to WTO rules.
Exact timing of further steps in the WTO litigation process is subject to further rulings and to negotiations between the US and the EU.
Unless a settlement, which is currently not under discussion, is reached between the parties, the litigation is expected to continue forseveral years.

25

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

GPT
Prompted by a whistleblower’s allegations, the Company conducted internal audits and retained PricewaterhouseCoopers (“PwC”) to
conduct an independent review relating to GPT Special Project Management Ltd. (“GPT”), a subsidiary that the Company acquired in2007. The allegations called into question a service contract entered into by GPT prior to its acquisition by the Company, relating toactivities conducted by GPT in Saudi Arabia. PwC’s report was provided by the Company to the UK Serious Fraud Office (the “SFO”) in
March 2012. In the period under review and based on the work it undertook, nothing came to PwC’s attention to suggest that improper
payments were made by GPT. In August 2012, the SFO announced that it had opened a formal criminal investigation into the matter.
The Company is in continuing engagement with the authorities.

Eurofighter Austria
In February 2017, the Austrian Federal Ministry of Defence raised criminal allegations against Airbus Defence and Space GmbH andEurofighter Jagdflugzeug GmbH for wilful deception and fraud in the context of the sale of the Eurofighter aircraft to Austria andrespective damage claims. After the Austrian Federal Ministry of Defence raised its criminal allegations, the Austrian public prosecutor
opened an investigation against Airbus Defence and Space GmbH, Eurofighter Jagdflugzeug GmbH and former and current employeesof the two entities. The Company has filed several submissions to the Vienna Public Prosecutor in response to the allegations ofdeception in the procurement of Eurofighter combat aircraft made by the Austrian Defence Minister. The Company is cooperating fully
with the authorities.

Investigation by the UK SFO and France’s PNF
In the context of review and enhancement of its internal compliance improvement programme, the Company discovered misstatements
and omissions relating to information provided in respect of third party consultants in certain applications for export credit financing for
the Company’s customers. In early 2016, the Company informed the UK, German and French Export Credit Agencies (“ECAs”) of theirregularities it had discovered. The Company made a similar disclosure to the UK Serious Fraud Office (“SFO”). In August 2016, theSFO informed the Company that it had opened an investigation into allegations of fraud, bribery and corruption in the civil aviation
business of Airbus relating to irregularities concerning third party consultants (business partners). In March 2017, France’s Parquet
National Financier (“PNF”) informed the Company that it had also opened a preliminary investigation into the same subject and that thetwo authorities would act in coordination going forward. The Company is cooperating fully with both authorities including in respect ofpotential issues across the Company’s business. As part of the Company’s engagement with the US authorities, the latter haverequested information relating to conduct forming part of the SFO/PNF investigation that could fall within US jurisdiction. The Company
is cooperating with the US authorities in close coordination with the SFO and PNF. The SFO and PNF investigations and any penalties
potentially levied as a result could have negative consequences for the Company. The potential imposition of any monetary penalty (andthe amount thereof) or other sanction including tax liability arising from the SFO and PNF investigations will depend on the ultimate
factual and legal findings of the investigation, and could have a material impact on the financial statements, business and operations of
the Company. However, at this stage it is too early to determine the likelihood or extent of any such possible consequence.
Investigations of this nature could also result in (i) civil claims or claims by shareholders against the Company (ii) adverse
consequences on the Company’s ability to obtain or continue financing for current or future projects (iii) limitations on the eligibility ofgroup companies for certain public sector contracts and/or (iv) damage to the Company’s business or reputation via negative publicity
adversely affecting the Company’s prospects in the commercial market place.

ECA Financing
A first ECA application since 2016 for financing submitted by the Company under the process previously agreed with the ECAs was
accepted by the ECAs and ECA cover was granted in Q1 2018. We anticipate a return to ECA cover in 2018 for a limited number oftransactions while the level of appetite for commercial financing remains high.

Other Investigations
The Company is cooperating fully with the authorities in a judicial investigation in France related to Kazakhstan. In this spirit, theCompany asked to be interviewed by the investigating magistrates and has been granted the status of “assisted witness” in theinvestigation.
The Company is cooperating with French judicial authorities pursuant to a request for mutual legal assistance made by the governmentof Tunisia in connection with historical aircraft sales.
Following a review of its US regulatory compliance procedures, the Company has discovered and subsequently informed relevant US
authorities of its findings concerning certain inaccuracies in filings made with the US Department of State pursuant to Part 130 of the US
International Traffic in Arms Regulations (“ITAR") (a US export control regulation). The Company is cooperating with the US authorities.
The Company is unable to reasonably estimate the time it may take to resolve the matter or the amount or range of potential loss,
penalty or other government action, if any, that may be incurred in connection with this matter.

26

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2018

Review of Business Partner Relationships
In light of regulatory investigations and commercial disputes, including those discussed above, the Company has determined toenhance certain of its policies, procedures and practices, including ethics and compliance and export control. The Company isaccordingly in the process of revising and implementing improved procedures, including those with respect to its engagement ofconsultants and other third parties, in particular in respect of sales support activities and is conducting enhanced due diligence as a precondition for future or continued engagement and to inform decisions on corresponding payments. The Company engaged legal,
investigative, and forensic accounting expertise of the highest calibre to undertake a comprehensive review of all relevant third party
business consultant relationships and related subject matters. The Company believes that these enhancements to its controls andpractices will best position it for the future, particularly in light of advancements in regulatory standards. Several consultants and otherthird parties have initiated commercial litigation and arbitration against the Company seeking relief. The comprehensive review andthese enhancements of its controls and practices has led to additional commercial litigation and arbitration against the Company andmay lead to other civil law or criminal law consequences in the future, which could have a material impact on the financial statements,
however at this stage it is too early to determine the likelihood or extent of any liability.

Commercial Disputes
In May 2013, the Company was notified of a commercial dispute following the decision taken by the Company to cease a partnership forsales support activities in some local markets abroad. The Company believes it has solid grounds to legally object to the alleged breachof a commercial agreement. However, the consequences of this dispute and the outcome of the proceedings cannot be fully assessedat this stage. The arbitration will not be completed until 2019 at the earliest.
In the course of another commercial dispute, the Company received a statement of claim by the Republic of China (Taiwan) alleging
liability for refunding part of the purchase price of a large contract for the supply of missiles by subsidiary Matra Défense S.A.S., which
the customer claims it was not obliged to pay. An arbitral award was rendered on 12 January 2018 with a principal amount of € 104
million plus interest and costs against Matra Défense S.A.S. Post-award proceedings are currently underway.

22.

Number of Employees

Airbus77,375
77,16330 June 201831 December 201723.

AirbusHelicopters
19,894
20,108

AirbusDefence and Consolidated
AirbusSpace
129,450
32,181
129,442
32,171

Events after the Reporting Date

On 1 July 2018, Airbus has taken the control of the CSALP partnership (see “– Note 3: Acquisitions and Disposals”).

27

Review reportTo:the board of directors of Airbus SE

Introduction
We have reviewed the accompanying condensed consolidated interim financial information of Airbus SE, Amsterdam,
which comprises the condensed consolidated statement of financial position as at 30 June 2018, the condensed consolidated
statements of comprehensive income, changes in equity, and cash flows for the six-month period then ended 30 June 2018,
and the notes, comprising a summary of the significant accounting policies and other explanatory information.
The board of directors is responsible for the preparation and presentation of this condensed consolidated interim financial
information in accordance with IAS 34, “Interim Financial Reporting” as adopted by the European Union. Our responsibility is toexpress a conclusion on this interim financial information based on our review.
Scope
We conducted our review in accordance with Dutch law including standard 2410, “Review of Interim Financial Information
Performed by the Independent Auditor of the Entity”. A review of interim financial information consists of making inquiries, primarilyof persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review issubstantially less in scope than an audit conducted in accordance with Dutch auditing standards and consequently does not enable
us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated
interim financial information for the six-month period ended 30 June 2018 is not prepared, in all material respects, in accordancewith IAS 34, “Interim Financial Reporting”, as adopted by the European Union.

Amsterdam, 25 July 2018

Ernst & Young Accountants LLP

A.A. van Eimeren