“WE MAKE
IT FLY”

ANNUAL REVIEW 2013

“WE MAKE
IT FLY”

CONTENTS
01 - EADS becomes Airbus Group
02 - Profile
04 - The Group in 201306 - The Year in Review/ 01

DRIVING OUR DEVELOPMENTANNUAL REVIEW 2013 — WE MAKE IT FLY

10 - L etter fromthe Chairman of the Board
12 - The Board of Directors
14 - Chief Executive Officer’s Interview
16 - Group Executive Committee
18 - Management Structure/ 02

ENHANCING GLOBALCOMPETITIVENESS
22 - Interview with
the Chief Financial Officer
24 - Key Financial Figures
26 - Share Information
28 - Interview with the Chief Strategy
and Marketing Officer
30 - Strategy
32 - Markets & Perspectives/ 03

ACHIEVING OUR GOALS
38 - Airbus Group Organisation
40 - Airbus
44 - Airbus Defence and Space45 - Airbus Military
46 - Cassidian
48 - Astrium

50 - Airbus Helicopters/ 04

BUILDING OUR CULTURE
54 - Engaged People
56 - Eco-efficiency
58 - Innovation
60 - Supply Chain / Programme Management

62 - Shareholder Information
63 - Photo Contest
64 - AddressesEADS
BECOMESWE MAKE IT FLY — ANNUAL REVIEW 2013

AND HAS 3 DIVISIONS:AIRBUSAIRBUS DEFENCE AND SPACEAIRBUS HELICOPTERS

1 NAME,
3 DIVISIONS,
1 MISSION.

01

02
ANNUAL REVIEW 2013 — WE MAKE IT FLY2013 PROFILE€ 686.7

billion order book€ 1.85earnings per share€ 0.75

dividend* per share990

patent filings in 2013

144,061*To be proposed to the Annual General Meeting

WE MAKE IT FLY — ANNUAL REVIEW 2013

€ 59.3billion revenues

employees

03

— THE GROUP IN 2013

AIRBUS GROUP— EADS IN 2013

ANNUAL REVIEW 2013 — WE MAKE IT FLY

Airbus Group is a global leader in aeronautics,
space and related services.

REVENUES BY REGIONEUROPE

ASIA-PACIFIC

36%
€m

04

2013

33%
2013

Revenues

21,04819,557

Order book(3)161,943

221,426

THE GROUP IN 2013 —AIRBUS GROUP— EADS2013

2012

Change€m

59,25656,480+5%

Research & Development expenses

€m

3,160

3,142

+1%

EBIT*

€m

2,661

2,144(a)+24%

Net Income (1)

€m

1,465

1,197(a)+22%

Earnings per share (1)

€

1.85

1.46(a)+27%

Dividend per share€

0.75(2)

0.60

+25%

Net Cash position

€m

9,054

12,292-26%

Order Intake (3)€m

218,681

102,471+113%

Order Book(3)€m

686,734

566,493+21%

144,061

140,405+3%

Employees2013 RESULTS

REVENUES

Airbus Group reported improved full year profits, driven
by increased aircraft deliveries and operational improvement.
Order intake(3) rose sharply, reflecting strong commercial
momentum at Airbus and major contracts in the space business.

Group revenues increased 5%, mainly reflecting
higher commercial aircraft deliveries and the A400M
ramp-up. Defence revenues were stable.

(a) Certain year-end 2012 figures in this report have been restated to reflect the change
to pension accounting under IAS 19 while Airbus’ figures reflect the inclusion of ATR andSogerma within Airbus Commercial. ATR and Sogerma were formerly Included in Other
Businesses.

(1) Airbus Group continues to use the term Net Income. It is identicalto Profit for the period attributable to equity owners of the parent as
defined by IFRS Rules.

* Unless otherwise indicated, EBIT* figures presented in this report are Earnings Before
Interest and Taxes, pre goodwill impairment and exceptionals.

(3) Contributions from commercial aircraft activities to Order intake
and Order book based on list prices.

NORTH AMERICAMIDDLE EAST

AFRICA / CENTRAL AND SOUTH AMERICA

15%
2013

(2) To be proposed to the Annual General Meeting.

WE MAKE IT FLY — ANNUAL REVIEW 2013

Revenues

9%
2013

7%
2013

8,781

5,459

4,411

120,227

122,861

60,27705

— YEAR IN REVIEWANNUAL REVIEW 2013 — WE MAKE IT FLY

1

AIRBUS
GROUP
—EADS
YEAR
IN REVIEW
2013
3

27 March 201311 June 201319 June 2013

SHAREHOLDERS APPROVE
GOVERNANCE MAKE-OVER (2)Voting at EADS’ Extraordinary General
Meeting, shareholders approved thecorporate governance overhaul, including
the election of new Directors. Afterwards,
the Board approved a share buyback
programme to support the free float
increase to above 70%.

X3 HYBRID DEMONSTRATORSETS SPEED RECORDThe X3 broke the unofficial helicopter
speed record, flying at 255 knots(472 km/hr) in level flight. With the speedof a turboprop aircraft and full flightcapabilities of a helicopter, thistechnology demonstrator openeda new frontier for aviation.

FRANCE ORDERS 34 NH90
MILITARY HELICOPTERS (1)The French Armed Forces ordered
34 NH90 Tactical Transport Helicopters,
following intense tests of the helicopterby special forces in desert conditions.
The NH90 performed beyond
expectations, demonstrating its ability
to perform anytime, anywhere.

31 May 201314 June 201331 July 2013

10 FREE SHARES FOR EMPLOYEESThe Board of Directors approved granting
10 free shares to employees in recognitionof their strong commitment to theGroup’s success.

FIRST A350 XWB COMPLETES
MAIDEN FLIGHT (3)The A350 XWB, Airbus’ new long-range
aircraft, successfully completed its firsttest flight, entering the final stage of its
development, ahead of certificationand planned entry-into-service by theend of 2014.

ADOPTION OF AIRBUS BRAND AND
RESTRUCTURING REVEALED
Following a strategy review, the Groupunveiled plans to integrate its defence
and space activities, creating the Airbus
Defence and Space Division. It alsoannounced plans to rename EADS and its
Divisions under the globally-recognised
Airbus brand, to aid integration andcohesion.

18 June 2013
EADS AND SIEMENS ENTER
INTO LONG-TERM RESEARCHPARTNERSHIP
Together with Diamond Aircraft, thecompanies will focus on new electric
propulsion technologies that lower aircraft
fuel costs and carbon dioxide emissions.

062

YEAR IN REVIEW —

5

4

6

7

A400M (Photo Contest winner)

1 August 201320 November 201314 December 2013

AIRBUS MILITARY DELIVERS FIRST
A400M TO FRENCH AIR FORCE (7)After 10 years of development and5,000 flight test hours, involving close
to 40,000 people, the first A400M
new-generation airlifter was delivered.
The A400M is the most cost-efficientand versatile military transport aircraft
ever developed.

AIRBUS WINS 160 ORDERS
AND COMMITMENTS WORTH
US$44 BILLION (6)A total of 160 orders and commitments
at the 13th Dubai Airshow, worth
US$ 44 billion, underlined the strong
demand for Airbus wide-body aircraft.
Emirates placed the single largest
order, for 50 additional A380s, worth
US$ 20 billion.

ASTRIUM TO BUILD 18 NEW
ARIANE 5 LAUNCHERS
Arianespace, the world’s leading satellite
launch company, ordered 18 additional
Ariane 5 ECA launchers, worth morethan € 2 billion. This confirmed theeffectiveness of an industrial model thatcomprises more than 550 companies,
and over 6,000 people, in 12 European
countries.

29 August 2013
ARIANE 5 COMPLETES 57TH
SUCCESSFUL LAUNCH (4)The Ariane 5 rocket launched two
telecommunications satellites into orbit,
once again confirming its position as theworld’s most reliable satellite launcher,and setting the standard for guaranteedaccess to space.

4 December 2013
400TH EUROFIGHTERTYPHOON DELIVERED (5)The German Air Force took deliveryof the 400th Eurofighter Typhoon.
The aircraft has proved its operational
effectiveness over 10 years of service,and now secures the airspace of the six
nations where it is in service, 24 hours
a day, seven days a week.

Scan here or visit
www.reports.airbus-group.com

07

ANNUAL REVIEW 2013 — WE MAKE IT FLY

08

Management and Governance. The Board and Management
implemented a major overhaul of the Group’s governance and shareholder
structure, bringing a significant increase in the free float.

WE MAKE IT FLY — ANNUAL REVIEW 2013

/ 01
“DRIVINGOUR
DEVELOPMENT”

09

— LETTER FROM THE CHAIRMAN OF THE BOARD
ANNUAL REVIEW 2013 — DRIVING OUR DEVELOPMENT

10

Denis Ranque
Chairman of the Board“THE BOARD
PLAYED A
SUPPORTING
ROLE IN THE
STRATEGYDISCUSSION.”

		ear Shareholders, Dear Stakeholders

The achievements of the past year are impressive, and I feel
privileged to have presided as Chairman over such a
distinguished Board and at such a transformational time inthe company’s history.
Following the Extraordinary General Meeting of March last year,
far-reaching changes to the shareholder structure and corporate
governance are now fully effective. The freefloat has grown toover 70 percent. The purpose of these changes has been to
normalise and simplify the Company’s corporate governance –placing an emphasis on providing the best support for a nimble
management in a fast moving competitive environment. Above
all, they ensure that the interests of shareholders andstakeholders at large remain at the very heart of the business.
The Company deserves recognition for handling the transition sosmoothly. The Company’s focus on operations has not wavered,as shown by the progress in programmes and results.

AUDIT COMMITTEE

Hermann-Josef Lamberti (Chairman)
Anne Lauvergeon
Michel Pébereau
Josep Piqué i Camps

In 2013, Airbus Group formalised a
dividend policy demonstrating a strong
commitment to shareholders’ returns.
This policy targets a sustainable growth in
the dividend within a payout ratio of 30%-40%.
DIVIDEND 2013 PER SHARE:€ 0.75 **To be proposed to the Annual General Meeting.

REMUNERATION AND NOMINATIONCOMMITTEE

Sir John Parker (Chairman)
Jean-Claude Trichet
Lakshmi N. Mittal
Hans-Peter Keitel

LETTER FROM THE CHAIRMAN OF THE BOARD —COMMITTEES OF
THE BOARDOF DIRECTORS

For more detailed information,please refer to the Corporate Governance sectionin the Registration Document 2013.

Moreover, I’m pleased to say that the transformed governance is
not only a change in our body of rules, but already a lived reality.
Today, the work of the Board of Directors is marked by a strong
sense of responsibility and motivation, witnessed by the highlevel of attendance at Board and Committee meetings, and evenmore by the quality of discussion and issues addressed.
The evaluation which was carried out in the first ten months of theBoard’s tenure, testifies to a high degree of openness and focus
within the Board and between Board and management.
While gender representation is clearly an area to be addressedat its next renewal, the Board collectively displays an impressive
range of relevant skills and experience, as well as international
diversity and independence. Few Boards in our industry or in any
other can boast such an international line-up of high-calibre
individuals. It certainly sends out a strong signal of our Group’s
global ambitions.
Already the Board has had numerous occasions to display its
qualities both in monitoring programme evolution and in
addressing more strategic matters.

of a challenging business environment has been carried with thefull support of the Board. So too has the plan to adopt the strong
Airbus brand for the entire Group.
Board expertise has been an important resource helping toshape and challenge management thinking on a variety of
longer-term ‘DNA’ topics, such as innovation and global footprint,
executive incentivisation, enterprise risk management, complianceprogrammes and export control regulations, as well as issues
relating to cyber security.
In the year ahead, the Board has an ambitious agenda. We will
be closely monitoring progress in the ongoing restructuring.
The long-term success of the Group depends on it. We will
also be examining the strategic positioning of the company’sbusinesses, with an eye both to the present and the next
long-term investment and production cycles.

DRIVING OUR DEVELOPMENT — ANNUAL REVIEW 2013

We are glad to reflect the improved financial performance inthe proposed 75 cent per share gross dividend. It represents
a 25 percent increase over last year and a payout ratio of
40 percent, in line with the new policy announced in December
2013. This new policy demonstrates a strong commitment
to shareholders’ returns and will target sustainable growth in
the dividend within a payout ratio of 30%-40%.

Further areas of focus will be the management’s deliveryof its plan, commitments to the capital markets, performancetargets and evaluation, and the handling of operational risks
and opportunities typical to such a complex business.
Throughout all our activities, we will continue to support andpromote ethical working practices. Over the long-term, good
citizenship and irreproachable behaviour are an essential basis
for Company performance. On this point, too, I can assure you,that we intend to act in the best interests of all our stakeholders.

Throughout 2013, the Board closely followed the progress ofmajor aircraft programmes such as the A350 XWB, the A380,
A400M, NH90 and EC225 retrofit.
Just as importantly, the Board played a significant supportingrole in the Strategy 2.0 discussion. The decision to integrate
Airbus Military, Astrium and Cassidian into one Defence andSpace Division in order to enhance competitiveness in the face

Denis Ranque11

— THE BOARD OF DIRECTORS

1

2

3

THE BOARDOF DIRECTORS

4

1.

Hans-Peter Keitel (66)3.

Vice President of the Federationof German Industries (BDI)

Hermann-Josef
Lamberti (58)Former Member of the Management
Board of Deutsche BankMr Lamberti was COO of
Deutsche Bank AG from 1998 to
2012. He previously gained wide
experience within IBM, in thefields of controlling, internal
application development, sales,
personal software, marketing andbrand management.

6

Ralph D. Crosby, Jr. (66)Former Member of theManagement Boards of EADS
and of Northrop Grumman

Mr Keitel served as Presidentof the Federation of German
Industries (BDI) from 2009 to
2012. Prior to that he served
nearly 20 years at Hochtief –first as Director for International
Business and subsequently
from 1992 to 2007 as Chief
Executive Officer.
2.

12

5

Mr Crosby has had thirty yearsof executive experience in theinternational aerospace anddefence industry, including
general management of major
defence and commercial
businesses for EADS andNorthrop Grumman.
4.

Sir John Parker (71)
Chairman of Anglo American

Prior to his current position,
Sir John Parker held several
leadership positions in theengineering, shipbuilding anddefence industries, including thechairmanship of National Grid until
end 2011 and some 25 years’
experience as a CEO including
Harland & Wolff and the Babcock
International Group.

THE BOARD OF DIRECTORS —

7

5.

6.

Anne Lauvergeon (54)

8

7.

9

Denis Ranque (62)109.

Manfred Bischoff (71)

11

11.

Jean-Claude Trichet (71)Partner of Efficiency Capital,
Chairman and CEO of A.L.P. S.A.

Chairman of the Board of Directorsof Airbus Group

Chairman of the Supervisory
Board of Daimler

Honorary Governor of
Banque de France

Ms Lauvergeon was CEO of
Areva from 2001-2011. Under
her tenure the company became
the world nuclear leader, and amajor renewables equipment
provider. Before joining Lazard
Frères and Alcatel she worked(1990-1995) for the French
President Mitterrand as Deputy
Chief of Staff and personal
representative for G7/G8 summit
preparations.

From 1998 to 2009 Denis Ranque
was Chairman and CEO of
Thales, the largest European
defence electronics company,
where he had previously held
various management positions.
He started his career in the French
Ministry for Industry. Since 2010
he has held various non-executive
directorship positions in industrial
companies and related non-profit
organisations.

Mr Bischoff served as CEO
of Daimler Benz Aerospace(DASA), as Chairman of
EADS and as Memberof the Management Boardof Daimler AG. Educatedas an economist, he hascomprehensive expertise
regarding the automotive
industry and aerospace.

Mr Trichet served as
President of the European
Central Bank from 2003 to
2011. He had previously been
Governor of Banque de France,
led the French Treasury andheld various leading positions
within the French Minister of
Economy and Finance.

Lakshmi N. Mittal (63)Chairman and Chief Executive
Officer of ArcelorMittal

Mr Mittal is an entrepreneur who
founded Mittal Steel Company in1976. The company has
successfully grown over theyears, is today known as
ArcelorMittal, and has become
the world’s largest steelmaker.
Mr Mittal is recognised for his
leadership in restructuring the
global steel industry.

8.

Michel Pébereau (72)
Honorary President of BNP Paribas

Mr Pébereau was the Chairmanof BNP Paribas until the endof 2011. Previously, he led BNPbank, presiding over the merger
that created BNP Paribas
in 2000. He also led the Crédit
Commercial de France, after
holding various high ranking
positions within the French
Treasury.

10.

Tom Enders (55)

12.

12

Josep Piquéi Camps (59)

Chief Executive Officer
of Airbus Group

Vice-Chairman and CEO
of Obrascón Huarte Lain

Prior to his current position,
Mr Enders was CEO of Airbus
from 2007 to 2012. He previously
acted as co-CEO of EADS and
led the EADS Defense andSecurity Systems Division, after
holding various top management
positions at MBB and DASA.

Mr Piqué i Camps is Vice-Chairman
and CEO of Obrascón Huarte Lain
(OHL). Having served in various
political functions, i.e. Senatorand Minister of successive
Spanish governments, he hascomprehensive politicalexperience.

13

— CHIEF EXECUTIVE OFFICER’S INTERVIEWANNUAL REVIEW 2013 — DRIVING OUR DEVELOPMENT

14

Tom Enders
Chief Executive Officer“THERE WERE
A NUMBER OFOPERATIONAL
ACHIEVEMENTS
IN 2013.”n many ways 2013 was a pivotal year for
Airbus Group. What were the most importantdevelopments?
Yes, it was quite some year. But for me two big developments
stand out.
Firstly, the overhaul to our governance and shareholding
structure, which paved the way for today’s performance-driven
company. It means we are fully focused on delivering continued
profitable growth that benefits all our stakeholders in the coming
years. I should mention here the valuable contribution of our
Board of Directors, which is surely second to none in terms of
their experience, global mindset and financial expertise.
The second major development was the Group’s new strategy.
Following the in-depth review completed in 2013, we defined
new strategic objectives that reflect the changing market
dynamics. We clearly recognise that our core strength is inaeronautics and embrace the strong growth momentum in thecommercial business. At the same time, through the creation of
Airbus Defence and Space we are enhancing ourcompetitiveness within the more constrained governmental
sectors. This Division will emerge stronger as a result of theongoing restructuring efforts, I’m convinced of that.

The Group’s renaming is a logical consequence of this strategy.
It gathers its components under the strongest brand, one thatstands for internationalisation, innovation and integration.
It reinforces the message: “We Make It Fly”. I think it’s a brandwe can all wear with pride.

Order intake was particularly strong at Airbus with a record
1,619 gross commercial orders but we shouldn’t overlook thestrong performance in the space business with a book-to-bill
above 1. The Group order backlog reached a record € 687 billion
by year end. Not many other manufacturing companies can havethat amount of visibility in their production planning.
We saw a significant improvement in profitability despite theone-off charges for the A350 XWB programme and the ongoing
restructuring. And, this upturn wasn’t purely down to the strong
commercial aircraft activities. Despite a difficult market
environment, profitability at the defence business improved
thanks to our transformation efforts and good programmemanagement and we achieved a 6% return on sales for the firsttime in the space business.

Beyond the programme milestones, we’ll be working to makeour Company more competitive for the future. The Airbus
Defence and Space Division has an important role here.
Airbus Helicopters, too, is taking important steps. In addition,a major Group-wide priority for 2014 is Quest, our quality initiative,
which will help us boost performance, customer satisfaction andour bottom-line. We have to limit unplanned charges across thecompany going forward, whether “one-offs” or more structural.
With the new governance and structure, shareholder
engagement has become a clear priority. What aboutother stakeholders?
We’re a normal enterprise and we’re judged on performance by
our shareholders. That’s a simple fact. But let’s face it: we can’t
deliver performance without the full engagement of the many
people who drive the business every day. By that I mean, above
all, our workforce, made up of talented, passionate and highly
professional people. It’s their effort, their drive and innovation thatmake the Company improve and helped it achieve the many
accolades it did last year.
In 2013, we recognised the contribution of Airbus Group
employees through a special offer of 10 free shares to each.
I think it’s appropriate for employees to take a share in company
ownership. We’re all in this enterprise together. And we all want
it to succeed.

DRIVING OUR DEVELOPMENT — ANNUAL REVIEW 2013

Which operational developments would you highlight?
There were a number of operational achievements in 2013 which
ultimately meant we again increased revenues and made further
progress towards our 2015 profitability target.
Clearly, 2013 was a great year for the commercial aircraftbusiness with record Airbus deliveries of 626 aircraft. That’s
no mean feat. Airbus also accomplished the first flight of theA350 XWB and the initial A400M deliveries were realised.
Four Ariane 5 launches were conducted with six company-built
satellites delivered and we saw good programme execution in
defence, particularly for the Eurofighter Typhoon. In the Helicopter
business, the EC225 Super Puma returned to service with all
operators worldwide. That was a significant achievement
following recent operational issues.

What are your priorities for the year ahead?
To put it simply and bluntly: 2014 is all about execution.
We have a busy schedule ahead of us. Our biggest development
programme, the A350 XWB, is now in its most critical phase.
We have to manage not only first deliveries but the industrial
ramp-up for the years ahead. We have to increase A400M
deliveries and in our Helicopter business, we must get the EC175
in the hands of its first customers.

CHIEF EXECUTIVE OFFICER’S INTERVIEW —“We’ll be working to makeour Company morecompetitive for the future.”

GROUP PRIORITIES 2014 - KEY POINTS hape our Future, Stay Innovative: Combine technology
Sroadmaps into a Group-wide R&T Strategy.
I nternationalisation: Adopt “One-Roof Principle” in key
countries. Increase international reach, leverage presence.

 trive for further Improvement of Customer
S
Satisfaction: Deliver products and services on quality,
on time and on cost.
 rive our Performance: Stick to Operative PlanningDcommitments, focus on profitability and cash management.

 ake Airbus Group a Success: Shape defence and spaceM
for competitiveness. Strengthen helicopter business. Manage
commercial aircraft execution challenges.

 thics and Compliance: Follow Integrity Principles andE
speak up to improve performance and preserve reputation.

 eople: Support people through the Group restructuring.
P
Invest in mastery of critical skills and behaviours for future.

 yber Security and Protection of our Assets:
C
Protect intellectual property, industrial assets and products.

15

— GROUP EXECUTIVE COMMITTEEANNUAL REVIEW 2013 — DRIVING OUR DEVELOPMENT

16

T. Enders

H. Wilhelm

F. Brégier

G. Faury

M. Lahoud

GROUP
EXECUTIVE
COMMITTEE
B. Gerwert

Tom Enders

Harald Wilhelm

Fabrice Brégier

Airbus Group
Chief Executive Ofﬁcer
Mr Enders chairs the Airbus
Group Executive Committee,
and is the only executive
member of the Board of
Directors.

Airbus Group & Airbus Chief
Financial Officer
Mr Wilhelm’s mission is to ensure
the financial performance of Airbus
Group, to secure the funding of
the Group and the customers’
financing, to manage investor
relations, to manage risks andopportunities, provide financialtransparency and create value for
the Company’s shareholders.

Airbus Chief Executive Ofﬁcer
As Airbus President and CEO,Mr Brégier is responsible forthe overall success of all Airbus
activities and for sustainably
positioning the business asa global leader in its
commercial markets.

Guillaume Faury

Marwan Lahoud

Bernhard Gerwert

Airbus Helicopters
Chief Executive Ofﬁcer
Mr. Faury’s mission is to implement
an ambitious transformation plan
to strengthen Airbus Helicopters’
industrial performance anddeliver commercial success andcustomer satisfaction on
programmes and related services.

Airbus Group Chief Strategy
and Marketing Officer
Mr Lahoud is responsible forthe elaboration of the Group’s
strategy and responsible for
the Group’s international
development and marketing.

Airbus Defence and Space
Chief Executive Ofﬁcer
Mr Gerwert is in charge ofrestructuring and driving asustainable businessperformance at Airbus Defence
and Space, while preparing
the Division’s future.

GROUP EXECUTIVE COMMITTEE —J. Botti

F. AuqueD. Ureña-Raso

J. Leahy

G. Butschek

DRIVING OUR DEVELOPMENT — ANNUAL REVIEW 2013

T. Baril

S. O’Keefe

Thierry Baril

François Auque

Günter Butschek

Jean Botti

Airbus Group & Airbus
Chief Human Resources Officer
Mr Baril ensures that Airbus
Group’s workforce is competent,
engaged and efficiently managed
and also anticipates future talentneeds to support businessgrowth. His role is key in theareas of leadership, culturechange, and diversity.

Airbus Defence and Space,
Head of Space Systems
Mr Auque is responsible for the
new Space Systems business line
within Airbus Defence and Space.
Space Systems is Europe’s leading
provider of space transportation,
orbital infrastructures and satellite
systems, and plays a crucial role inFrance’s deterrence capabilities.

Airbus Chief Operating Ofﬁcer
Mr Butschek is Airbus Chief
Operating Officer, holding
overall responsibility for
operations, engineering,procurement and supply chain
management, quality andinformation technology inthis Division.

Airbus Group
Chief Technical Officer
Mr Botti’s mission is to steer
Airbus Group's Research &Technology strategy.
He oversees IT, and initiatives
in cyber security, quality,
programme management andmanufacturing tools for theCompany’s future.

John Leahy

Domingo Ureña-RasoSean O’Keefe

Airbus Chief Operating OfﬁcerCustomers
Mr Leahy’s responsibilities cover
all commercial activities of Airbus
including sales, marketing,contracts, business transaction
control, asset management,
leasing and business development.

Airbus Defence and Space,
Head of Military Aircraft
Mr Ureña-Raso is in chargeof the Military Aircraft business,
responsible notably for the
A400M, Eurofighter and UAV
programmes. In this function,
he reports to the CEO of Airbus
Defence and Space.

Airbus Group, Inc. Chief Executive Ofﬁcer
Mr O’Keefe oversaw the management and operational responsibilities
of expanding the Airbus Group market presence in the USA, in
coordination with the three Airbus Group operating Divisions.

Allan McArtor succeeded
Sean O’Keefe on 1 March 2014.

17

— MANAGEMENT STRUCTURE

AIRBUS GROUPMANAGEMENTSTRUCTURE
as of 1 March 2014

DIVISIONS
AirbusFabrice Brégier (CEO)Thierry Baril
Günter Butschek
John Leahy

ANNUAL REVIEW 2013 — DRIVING OUR DEVELOPMENT

Harald Wilhelm
Board of Directors
AirbusHelicopters

Denis Ranque (Chairman)
Tom Enders (CEO)Guillaume Faury (CEO)Manfred Bischoff
Ralph D. Crosby, Jr
Hans-Peter Keitel

Chief Executive Officer
Tom Enders

Hermann-Josef Lamberti

AirbusDefence and Space

Anne Lauvergeon
Bernhard Gerwert (CEO)Lakshmi N. Mittal
Sir John Parker

François Auque
Domingo Ureña-RasoMichel Pébereau
Josep Piqué i Camps
Jean-Claude Trichet
Airbus Group, Inc.
Allan McArtor * (CEO)GROUP EXECUTIVE COMMITTEE MEMBERS

18*Allan McArtor succeeded Sean O’Keefe on 1 March 2014

MANAGEMENT STRUCTURE —GROUP FUNCTIONS

Corporate Secretary
Pierre de Bausset

Chief Financial
Officer

Corporate Audit
Corinne Colloc´hChief Strategy& Marketing Officer
Marwan Lahoud
Chief Compliance
Officer
Pedro Montoya

Chief Human
Resources Officer

DRIVING OUR DEVELOPMENT — ANNUAL REVIEW 2013

Harald WilhelmThierry Baril
Legal Department
Peter Kleinschmidt

Chief Technical
Officer
Jean Botti
Corporate
Communications
Rainer Ohler

19

ANNUAL REVIEW 2013 — WE MAKE IT FLY

Financial Overview, Strategy, Markets & Perspectives.
Airbus Group is focused on delivering improved financial performance,
based on commercial leadership in the aeronautics field and optimised
positioning in defence and space.

20

SPOT 6 Satellite Image – Mozambique Islands.

WE MAKE IT FLY — ANNUAL REVIEW 2013

/ 02
“ENHANCING
GLOBALCOMPETITIVENESS”

21

— INTERVIEW WITH THE CHIEF FINANCIAL OFFICER
ANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESS“We are making progress towards
our profitability target.”Harald Wilhelm
Chief Financial Officer“WE’RE
FULLY
FOCUSED ON
EXECUTION.”

Can you talk us through the main highlightsof the Group’s 2013 financial results?
The most important message is: we are making progress
towards our profitability target. While our revenues were up 5%
against the previous year, our underlying profitability, the EBIT*
before one-off, was up 21% to € 3.6 billion. That represents areturn on sales of 6%. So it’s another significant step towards
our target of 7% to 8% by 2015 (see graphs on pages 24-25).
What’s behind the proposed dividend?
It is the result of improved profitability supported by our new
dividend policy, which we announced at the end of 2013.
The proposed gross dividend of 75 cents per share represents
a payout ratio of 40% and a 25% increase on the previous
year’s dividend.
How do you see the cash development?
We are currently in a phase of heavy investment in production
and development programmes, in particular with the A400M
and A350 XWB ramping up. As a result, the free cash flow for
the full year was negative. However, it was better than expected
some months ago, reflecting a high level of commercialdeliveries and a heightened operational focus on cash
measures in the last quarter.
Our net cash at the end of 2013 remains a very solid € 9 billion.
That’s after taking into account the € 1.9 billion invested in

22

INTERVIEW WITH THE CHIEF FINANCIAL OFFICER —the share buyback and the dividend payment of € 469 million.
So we maintain the financial flexibility and security we need toinvest in our operations and growth. Our credit ratings further
underpin the Group’s financial stability.
Looking ahead, I’ll be keeping a firm eye on cash generation.
In 2014 and 2015, we need to accelerate the effort on ourdevelopment programmes and we’ll be targeting breakeven
free cash flow before acquisitions. I expect to see an
improvement thereafter.

What are the main risks to profitability going forward?
Risk management and cost adherence are absolute priorities for
the Group. And I believe our disciplined approach is paying off.
From today’s perspective, one-offs should be limited to possible
charges on the A350 XWB programme, which is now entering its
most critical phase, and foreign exchange effects linked to thepre-delivery payment mismatch and balance sheet revaluation.
Finally, how much higher can the share price go?
It's certainly been an very impressive year for the Group’s shareprice, rising 89% during 2013. But I won’t be making any
predictions! I see the rise as an indication of the highexpectations the market has set for the Company. And it’sa measure of the responsibility we carry for delivering.
Looking ahead, the management team and I are fully focusedon execution.

ENHANCING GLOBAL COMPETITIVENESS — ANNUAL REVIEW 2013

What sort of performance should we be expectingfrom the Group in the coming period?
Looking to the year ahead, assuming a dollar euro rate of 1.35,
you should expect revenues in 2014 to be broadly stablecompared to 2013, with Airbus deliveries at roughly the samelevel as last year. Underlying profitability should see moderate
growth in 2014, and we are reaffirming our 2015 target of a 7-8%
return on sales. You should note, this return on sales target isbased on a dollar-euro rate of 1.35 and includes the dilutive effectof early A350 deliveries.
In addition, the strong commercial performance at Airbus has
enabled us to increase the single-aisle production rate to 46 permonth in 2016 from today’s level of 42, and our robust order
book, which is now worth around € 687 billion, is very welldiversified across the globe and gives us excellent visibility forthe years ahead.

What do you say to the A350 one-off booked in 2013?
The A350 is an extremely challenging industrial programme. But
we’ve learnt a lot from previous experience. Over the past year,
we have been increasing efforts to ensure a robust ramp-up andmature aircraft deliveries. Thanks to those efforts, theprogramme remains on track for entry-into-service by the endof the year. But the extra effort has come at a cost, and theassessment of actual cost data points against our costconvergence targets triggered a € 434 million charge in 2013,reflecting a higher level of recurring costs on the early aircraft.
We already launched a cost convergence project one year ago
to address the main root causes in the mid to long-term throughmitigation actions, and I am convinced that the programme will
be a key contributor to the Group’s future performance.
With over 800 aircraft already on order, the A350 XWB will bea cornerstone for the Group for many years to come.

23

— KEY FINANCIAL FIGURESKEY
FINANCIALFIGURESCONSISTENT GROWTH IN REVENUESREVENUES GROWTHREVENUES BY DIVISION
56

60

4949

5050

3030
2020
1010
00

60

49

50

ANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESS

4040

5959

€ bn5656

6060

3737

4747

40 4444
30

50

59

30

37

0

2011
2011

10

1212

2012
02012

44

47
11%

9%

20

20

1212

49

40
56

44
10

37

REVENUES BY REGION

59

1212
12
12
2013
2013
2011
2012

47

36%

22%

12

12

12

2011

2012

2013

7%

15%
67%
33%

12
2013

Commercial
Defence

AirbusAirbus Defence and Space
Airbus Helicopters

EuropeAsia-PacificNorth America

Middle EastA
 frica / Central andSouth America

Pro forma as per FY 2013 disclosure.

Revenue growth has been driven by the commercial business, with strong momentum in particular from Asia-Pacificand the Middle East. Defence revenues have remained resilient despite budgetary pressures.

GROWTH IN UNDERLYING PROFITABILITY
Return on sales (EBIT* before one-off as a percentage of revenues)
10
1010

8

10
88

6%

6

8
66

4

6
44

5.2%
3.7%

2

4
22

0

2

2011

2012

2013
2013
2012

2013

2013

00

2011
2011
0

2012
2012
2011

Airbus Group's return on sales continues to improve. The Group remains on track to reach its 2015 profitability targets.
0.8

2.0

* Pre-goodwill impairment and exceptionals.

24

0.7
0.8
0.8
0.7
0.7
0.6
0.6
0.5
0.5

0.8
0.7
0.6

0.6

2.0
2.0

1.5

2.0amended with IAS19 restatement and perimeter change.
In this page, certain 2012 figures are pro forma,

0.5
0.4

1.5
1.5
1.5

1.0

10 10

8

6

6

4

4

2

2

0

0

KEY FINANCIAL FIGURES —

8

10

2011
2011

8

2012
2012

2013
2013

AIRBUSGROUP DIVIDEND
6

EARNINGS PER SHAREPERFORMANCE

Gross dividend per share (in €)(in €)

40.75*

0.8 0.82
0.7 0.7

0.60
0.45

2011

0.4 0.4
0.3 0.3

1.46

1.5 1.5

40%

2012

40%

1.27

2013
1.0 1.035%
0.5 0.5

0.2 0.2
0.1 0.1
0

0
0.8

2011
2011

2012
2012

2013
2013

— Pay-out Ratio

0

0
2.0

2011
2011

2012
2012

2013
2013

EPS reported

0.7
0.6

The proposed gross dividend per share of € 0.75* represents
0.5
an increaseof 25% compared to 2012.
0.4
800 800

0.3
700 700* To be proposed to the Annual General Meeting.
0.2
600 600
0.1
500 50002011
2012
400 400

1.5

Net income for the year increased by 22%
to € 1.5 billion. Based on average number
of1.0
shares outstanding in 2013, this translates
into earnings per share (EPS) of € 1.85.
0.5

2013
CONSISTENT GROWTH IN ORDER BOOK

0

2011

2012

2013

300 300

ORDER BOOK BY ACTIVITY
200 200

ORDER BOOK BY REGIONENHANCING GLOBAL COMPETITIVENESS — ANNUAL REVIEW 2013

0.6 0.60
0.5 0.5

1.85

2.0 2.0

100 1000 €0bn
800

2011
2011

2012
2012

2013
2013

9%

687

700

541

600

566

32%

18%

500
400

488

300

516

640
18%
23%

200
100
0

Commercial
Defence

53

50

47

2011

2012

2013

Asia-Pacific
EuropeMiddle East

North AmericaA frica / Central andSouth America

Thanks to strong commercial momentum and a highly competitive product range, the Airbus Group backlog has grownsteadily over the past years. The Airbus Group backlog is well diversified across the major regions of the globe.

25

— SHARE INFORMATIONSHAREINFORMATIONANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESS

Following a 22% progression in 2012, the Group’s share price rose 89% in 2013.
In the same year, the CAC 40 improved by 18%, the DAX by 25% and the MDAX by 36%.
The MSCI Aerospace index was up 50%.

Up to mid-March 2013, the Group's shares followed an upward
trend, supported by improved full year results published end of
February and the Group’s entry into the EuroStoxx50 index.
On 15 March 2013, the share price peaked at € 42.59. Over thefollowing weeks, the Group's shares and the European markets
declined due to concerns about eurozone economies.
The shares then rallied following the completion of a series ofshare sales by the Group’s major legacy shareholders, and dueto the Company’s ongoing share buyback programme, reaching€ 41.12 on 2 April 2013. The share price declined again on
renewed worries about the eurozone economy, retreating to€ 37.5 in mid-April.

The release of strong first quarter and half-year figures, on
14 May 2013 and 31 July 2013 respectively, saw the share priceonce again move ahead before slipping back to € 42 due tomarket concerns about a possible Chinese credit crunch andthe prospect of reduced U.S. monetary stimulus.
On 11 December, at the start of the Global Investor Forum, theGroup announced a new dividend policy with a payout ratio of
30-40%, and confirmed its 7-8% return on sales target for 2015.
The news triggered a sharp increase in the share price whichreached an all-time high of € 56.2.
On 31 December 2013, the share closed at € 55.8. As of
2 January 2014, the Group’s shares are listed under the Airbus
Group name and symbol: AIR.

PROFILENUMBER OF SHARES AS OF 31 DECEMBER 2013

783,157,635

HIGH IN 2013 ON THE PARIS STOCK MARKET:ON 27 DECEMBER 2013

€ 56.24

ISIN CODE

NL0000235190
GROSS DIVIDEND PER SHARE€ 0.75*26*To be proposed to the Annual General Meeting.

LOW IN 2013 ON THE PARIS STOCK MARKET:ON 2 JANUARY 2013

€ 30.07

Please refer to www.airbus-group.com for further information

SHARE INFORMATION —SHARE PRICE EVOLUTIONAS OF 31 DECEMBER 2013

Base 100 as of 3 January 2011

EADS share price in €

350
60

300
50
250

200
30
150

20
100

50

J F M A M J J A S O N D

EADSCAC 40MSCI World Aero/Defence(in €, adjusted daily US $/€ rate)

ENHANCING GLOBAL COMPETITIVENESS — ANNUAL REVIEW 201340

CAPITAL STRUCTURE
AS OF 31 DECEMBER 2013
	
SOGEPA (French State)

12%

GZBV (German State)State Holdings

11%
4%

73%

SEPI (Spanish State)

FREE FLOAT** Comprising: Institutional investors & Retail: 72.6% and Treasury shares (without economic or voting rights): 0.4%

27

— INTERVIEW WITH THE CHIEF STRATEGY AND MARKETING OFFICER
ANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESS

28

Marwan Lahoud
Chief Strategy and Marketing Officer“COMMERCIAL
AVIATIONREMAINSOUR MAJORGROWTHENGINE.”In 2013, the Group completed its strategy review
and launched “Strategy 2.0.” Can you summarise
the main findings?
The previous Group strategy, Vision 2020, launched back in
2007, was mainly focused on growth, profitability, and onbalancing commercial and governmental businesses.
Looking back, we can see that a lot of progress has been made.
Our Group has grown significantly and faster than we anticipated.
We have become more international, with the bulk of our sales
and orders coming from outside Europe, and sourcing outside
Europe has significantly increased as well. Our services businesshas also doubled in five years.
However, despite achieving strong growth in a rather moderately
growing European defence and space market in recent years,
achieving a more balanced overall portfolio was not possible.
“Strategy 2.0” takes this into account. Commercial aviation,
which today accounts for almost two-thirds of our revenues,
remains our major growth engine. We have to embrace that.
In our defence and space businesses, too, we need to focus
on our strengths, as we are faced with flat markets in ourdomestic countries going forward. Since we have a broad
and well developed product portfolio we can focus on costcompetitiveness and offer proven solutions at low risk toemerging customers (see pages 30-31 for more details).
Can you elaborate on the rationale behind the mergerof the Group’s defence and space businesses?
As I said, we are not expecting our domestic defence andspace markets to show much growth in the near term at least.
So in order to continue generating value, we need to enhanceWe also had a successful year in the Middle East. Amongst major
contracts, the large Etihad order, which includes 50 A350 XWBs,
and the Emirates order for 50 A380s stand out. Important orders
were also received in Saudi Arabia for our defence and security
activities.
In South America, as well as receiving a major single-aisle aircraft
order from Mexico’s VivaAerobus, the Group won helicopter
orders from Argentina, Bolivia, Brazil, Chile and Peru. Our ATR joint
venture received orders in Colombia, Brazil, Antigua and Uruguay.
In Europe, we booked a major single aisle contract for Turkish
Airlines as well as an order for helicopters. In Central Asia and theCaucasus we received orders for helicopters and military transport
aircraft and in Russia we booked an order for commercial aircraft
for AIG and for a Telecommunications satellite.

our competitiveness, use our resources very efficiently andimprove our access to growth markets. By merging ourdefence and space activities, which were previously managed
separately, we have a unique opportunity to benefit fromsynergies, not only in terms of cost, but also in operations andsales. Remember that since the creation of EADS in 2000, thecombined revenues of Cassidian, Astrium and Airbus Military
have more than doubled. Many of their activities did not evenexist 14 years ago. It is natural that business boundaries evolvein parallel. Therefore, I believe that the creation of the newly
merged Airbus Defence and Space Division is now the rightstep and this integration will strengthen our position as a market
leader. The Division is the European leader within its sector for“everything that flies”, as well as a global leader in many of
its segments (Transport, Tanker, Launchers) and a one stop
shop for secured communication through space, air andground solutions.
Looking back at the past year, what international
market successes stand out?
In Asia-Pacific, including China and India, the Group achievedvery good results with over € 50 billion of business won
including major commercial aircraft orders coming from China,
Air AsiaX (Malaysia), Lion Air (Indonesia), Srilankan Airlines andSingapore Airlines. The Japan Airlines order of 31 A350 XWB
family aircraft clearly stands out as a strategic breakthrough ina previously very difficult market for Airbus. Important helicopter
orders were booked in South Korea, Japan and Thailand as
well as ATR orders in Indonesia, Laos, Taiwan and Thailand.
The MRTT (Multi-Role Tanker Transport) contract win in
Singapore also deserves to be mentioned.

Are there any plans to extend the Group’s existing
international presence?
Increasing industrial presence can be a very effective way to
improve our market share in large and growing markets, as wehave seen with our A320 facility in China. Work is currently
progressing on the new Final Assembly Line in Alabama, USA,
which is due to start delivering A320 family aircraft in 2016.
Beyond that, we are increasing our activity in Mexico, where werecently opened a high-technology component factory for ourhelicopter business. And we’re currently looking very closely
at a possible expanded presence in Poland.
What’s the current status with the Group’s
services strategy?
As I mentioned earlier, our services business has progressed
well in recent years. Services today account for some 15% ofAirbus Group revenues with up to 42% of the helicoptersbusiness. Again, we need to focus on our strengths: our uniqueplatform know-how. With a doubling of the Airbus fleet in the next
20 years and 800 new military platforms entering service overthe next five years alone, we have a unique opportunity to growand shape a long term profitable business while adding highvalue to our customers on and around our products.

ENHANCING GLOBAL COMPETITIVENESS — ANNUAL REVIEW 2013

Thanks to the Group’s success on international markets, ourorder book, which now stands at around € 687 billion, is very welldistributed across different regions of the world.

INTERVIEW WITH THE CHIEF STRATEGY AND MARKETING OFFICER —“The newly merged Airbus Defence
and Space Division will strengthen our
position as a market leader.”What about potential acquisitions?
Acquisitions are tools to reach our strategic goals and wehave the resources to act should the opportunity present itself.
However, major acquisitions are not on the table in theforeseeable future. Our priority is to focus on our core strengths,
successfully execute our programmes and deliver enhanced
competitiveness wherever we operate. I believe that with ourstrategic focus, our strong portfolio of products and our
unrivalled aeronautics know-how, we can continue to succeedon the global markets in the years ahead.

29

— STRATEGYANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESSSTRATEGY
Airbus Group’s strategy is to focus on Commercial Leadership,
Defence and Space Optimisation and Value Creation.
Following a strategy review conducted in 2013, Airbus Group has
elaborated a set of strategic priorities for the Group which define
the way ahead for the years to come.

STRATEGIC PRIORITIES FOR THE GROUP
 trengthen market position and profitability while remaining a leader
S
in Commercial Aeronautics
Preserve leading position in European Defence and Space and Government markets
 xploit incremental innovation potential within product programmes,E
while preparing next-generation breakthroughs ocus on profitability, value creation, and market position – no need to chaseF
growth at any cost; actively manage portfolioAdapt to a more global world and move closer to international markets
Focus services on and around platforms
Strengthen value chain position

30

STRATEGY —OUR DNAWE MAKE THINGS FLYOUTSIDE EUROPE

2013 CIVIL REVENUES

We are first and foremost
an aeronautics group.

The bulk of the Group's
2013 revenues come fromoutside Europe.

The Group is largely
a commercial company.

15%

20%
36%
64%

80%

85%

Outside Europe
EuropeCommercial
Defence

Airbus Group has seen remarkable growth over the past years. While all Divisions have expanded, the global civil
aviation business has seen the biggest growth. Today most of Airbus Group’s business is related to aeronautics,
comes from outside Europe and is commercial.

STRATEGIC IMPLICATIONSWe build a portfolio of strong divisions
We focus on our Aeronautics business (civil and military) and Space e leverage the strength of the Airbus Commercial business to benefitWthe entire group

ENHANCING GLOBAL COMPETITIVENESS — ANNUAL REVIEW 2013

Aeronautics
Non-aeronautics

We consolidate the bulk of our Defence and Space business into one division
 e keep our Helicopter business as a separate division due to its technicalWand market specificities
 onsequently, we rename and rebrand EADS “Airbus Group”, a worldwide
Crecognised brand31

— MARKETS & PERSPECTIVESMARKETS& PERSPECTIVESANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESS

As the global economy continues its slow recovery, air traffic
is expanding, driven in particular by emerging markets.
Due to budget constraints, government spending in Europe and the US
is expected to remain flat at best in the near to mid-term.

Solid momentum in air traffic
SLOW GLOBAL ECONOMIC RECOVERY
In its October 2013 World Economic Outlook, the International
Monetary Fund (IMF) reported weak global growth in 2013,at a projected 2.9% for the full year (2012: 3.2%).
Advanced economies averaged 1.2% growth in 2013 (1.5% in2012) with the US expanding at 1.6% (2012: 2.8%) and the Euro
area shrinking by 0.4% (2012: -0.6%).
Emerging market and developing economies slowed to an
average 4.5% growth in 2013, down from 4.9% in 2012. Growthin China in 2013 was estimated at 7.6% (2012: 7.7%), with India
projected to grow 3.8% (2012: 3.2%) and the ASEAN-5 countries(Indonesia, Malaysia, Philippines, Thailand and Vietnam) to grow
5.0% (2012: 6.2%).
The IMF reported somewhat better near-term prospects, with
global Gross Domestic Product (GDP) growth forecast at 3.6% in
2014. The United States economy is expected to grow 2.6% in
2014, with the Euro area returning to moderate growth of 1.0%.
Emerging market and developing economies are forecast to
grow at 5.1% in 2014, with a growth rate of 7.3% in China, 5.1% inIndia and 5.4% across ASEAN-5 countries. In its report, the IMF
warns of risks faced by emerging markets relating to exchange
rates and financial markets.
LONG-TERM ECONOMIC TRENDS
According to the PwC “World in 2050” report published in 2013,
the global economy is expected to grow at an average rate of justabove 3% per year up to 2050, doubling in size by 2032 andnearly doubling again by 2050.

32

The report predicts that emerging economies will continue togrow at a faster pace than advanced economies, as a catchup process continues. According to PwC, China is projected
to overtake the US as the largest economy by 2017 inpurchasing power parity terms and by 2027 in market
exchange rate terms.

AIR TRAFFIC CONTINUES CURRENT GROWTH PATH
Air traffic growth tends to be positively correlated to GDP growth.
In its March 2014 financial update, the International Air Transport
Association (IATA) reported that global air traffic, measured inrevenue passenger kilometres (RPK), rose 5.2% in 2013,
following a 5.3% year-on-year increase in 2012.
Air traffic increased 2.2% in North America (2012: 1.0%) and 4.0%
in Europe (2012: 4.5%). Estimated air traffic growth wassignificantly higher in Asia-Pacific at 7.2% (2012: 6.1%) and the
Middle-East at 11.9% (2012: 14.7%).

Singapore Airlines A380MARKETS & PERSPECTIVES —ENHANCING GLOBAL COMPETITIVENESS — ANNUAL REVIEW 2013

IATA expects Asia-Pacific passenger traffic to increase to 7.4% in 2014

According to the IATA March 2014 update, airlines returned
an estimated net profit of US$ 12.9 billion in 2013 (2012:
US$ 6.1 billion). North American carriers ended 2013 with acollective net profit of US$ 6.8 billion (2012: US$ 2.3 billion),with Asia-Pacific carriers posting US$ 3.0 billion profit(2012: US$ 2.7 billion) and European airlines an estimated
US$ 1.2 billion after breaking even the previous year.
According to IATA, passenger markets continue to outperformthe cargo business.

PASSENGER TRAFFIC IS OUTPERFORMINGGDP GROWTH
World real GDP and passenger traffic (year-over-year)
8%

February
Passenger
traffic

+7.2%

6%
4%
2%

Looking to 2014, IATA forecasts a 5.8% increase in passenger
traffic (RPK), with traffic up 2.7% in North America, 4.7% in
Europe, 7.4% in Asia-Pacific and 13.0% in the Middle East.
IATA predicted further improvement in the industry’s net profit
to US$ 18.7 billion in 2014, with all regions seeing increases
in profitability. In 2014, airlines are expected to post net profit of
US$ 8.6 billion in North America, US$ 3.7 billion in Asia-Pacificand US$ 3.1 billion in Europe.
ROBUST MID-TERM OUTLOOK
According to the IATA Airline Industry Forecast 2013-2017,
published in December 2013, demand is expected to expandby an average 5.4% compound annual growth rate between
2013 and 2017.
The Airbus 2013 Global Market Forecast estimates thatpassenger traffic will grow at an average yearly rate of 4.7% overthe next twenty years. In order to meet the demand for growthand for replacement of aging aircraft, Airbus calculates a needfor more than 28,000 new passenger aircraft up to 2032.

0%
– 2%
– 4%

2008

2009

Real GDP

2010

2011

2012

2013

2014

Passenger traffic ASK (Available Seat Kilometres)

Source: IHS Global Insight (February 2014 data), OAG (ASKs data), Airbus.

AIR TRAVEL HAS PROVED TO BE RESILIENT
TO EXTERNAL SHOCKS(in RPK* trillions)
Oil
Crisis

5.5

Oil
CrisisGulf
Crisis

9/11
AttackAsian
Financial
CrisisSARS Crisis

5.0+70%**

4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
1968

1973

1978

1983

1988

World annual traffic* Revenue Passenger Kilometres.
Source: ICAO, Airbus.

** Since 2000

1993

1998

2003

2008

2013

33

— MARKETS & PERSPECTIVESANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESS

Dubai Air Show 2013

Trends in defence, space and helicopters
DEFENCE BUDGETS UNDER PRESSURE
IN THE US AND EUROPE
The need to consolidate public finances has weighed on
government budgets, particularly in the US and Europe.
According to the Stockholm International Peace ResearchInstitute (SIPRI) in its April 2014 release, world military
expenditure fell 1.9% in real terms to US$ 1,747 billion in 2013.
According to SIPRI, military spending in the US fell 7.8% in realterms to $ 640 billion in 2013, while Western and Central
European spending fell 2.4% to $ 312 billion. By contrast, militaryspending rose by 4.7% in East Asia ($ 282 billion), by 4% in the
Middle East ($ 150 billion) and by 5.3% in Eastern Europe($ 98.5 billion).
A McKinsey study “The Future of European Defence” points tothe dilemma facing European governments, with a need tocommit more resources to their collective defence and straitjacketed finances. Europe’s increasing reliance on the US has
led to strains within the NATO alliance. Currently, US spending
represents 72% of the NATO defence total, up from 63% in 2001.

34

According to the McKinsey report, the situation in Europe isfurther complicated by structural inefficiencies: Europe deploys
six times as many different weapon systems as the US while
spending only 40% of the budget. According to the report, thepotential savings that could have been achieved through sharing
and cooperation in 2012 are close to € 13 billion.
In December 2013, European Heads of State met to discuss a
Common Security and Defence Policy. In a statement following
the meeting, the European Defence Agency promised to pushforward with four key programmes: remotely piloted aircraft
systems, air-to-air refuelling, satellite communications and cyber.
Cybersecurity continues to grow in importance. According to thereport “The Global Cybersecurity Market 2013-2023” published inJuly 2013 by Security Defence Intelligence, North America is
expected to spend US$ 93.6 billion on cyber security over theforecast period, making it by far the largest spender in the domain.
OUTLOOK FOR THE SPACE INDUSTRY
According to the Space Foundation’s “Space Report 2013”,
the global space economy grew by nearly 7% in 2012, reachinga new record of US$ 304.31 billion. The report states that thecommercial sector accounts for most of the growth, constituting
nearly three-quarters of the space economy, with government
spending making up the rest.

MARKETS & PERSPECTIVES —Commercial activities drove growth in the space sector in 2013

by function (as of 2012)
3%
7%
8%

NH90

38%
9%
9%

In Europe, major civil space programmes are led by theEuropean Space Agency (ESA). The total ESA budget set for2014 amounts to € 4.1 billion (2013: € 4.3 billion). Major
programmes to benefit from the ESA budget in 2014 include
Earth Observation with € 915.9 million (2013: € 982.5 million),
Navigation with € 630.2 million (2013: € 708.8 million), Launcherswith € 617.4 million (2013: € 684.1 million) and Scientific
Programmes with € 506.5 million (2013: € 507.9 million).
Key decisions on Europe’s role in scientific exploration andthe future of European launchers are expected to be madeat the ESA Ministerial Council meeting in December 2014.
BUDGET CONSTRAINTS WEIGH
ON MILITARY HELICOPTER ORDERS
The financial crisis and public spending constraints in the advanced
economies have weighed on helicopter sales. While sales in thecivil area have begun to recover, military sales in the US andWestern Europe are expected to remain depressed in the nearto mid-term after significant increases in the previous ten years.
Teal Group forecasts civil and military rotorcraft operators will
require 16,126 new helicopters worth US$ 193.1 billion overthe next ten years. In value terms, military helicopters accountfor by far the largest share of the market.
The 10-year forecast projects a civil and parapublic market for
10,308 helicopters worth $ 60.3 billion, and a military market
for 5,818 helicopters worth $ 132.8 billion through 2022.

10%

16%

Commercial Communications
Government Communications
Remote Sensing
R&D

Space Science
Military Surveillance
Navigation
Meteorology

Source: Tauri Group database of spacecraft and launch activities.

ENHANCING GLOBAL COMPETITIVENESS — ANNUAL REVIEW 2013

OPERATIONAL SATELLITESFRAGMENTATION OF DEFENCE MARKET
by aircraft equipment in Europe

UAV (others(1))
Missiles - all types
Fighter
UAV - HALE/MALE
Special mission A/C
Multirole helicopters
Turboprop trainers
Attack helicopters
Transport/tanker aircraft
Light attack/jet trainers
UAV - UCAV

14
9
6
4
4
3
3
2
2
2
1

Number ofcompetitors
by equipment
category
>5
3-5
1-2

(1) Tactical, mini, micro, others.
Source: McKinsey analysis, April 2013.

35

ANNUAL REVIEW 2013 — WE MAKE IT FLY

Review of the Divisions in 2013. Increased aircraft deliveries, strong
order intake and operational focus are fuelling an improved performance.

36

KEY FINANCIALS 2013 —WE MAKE IT FLY — ANNUAL REVIEW 2013

/ 03
“ACHIEVINGOURGOALS”

37

— AIRBUS GROUP ORGANISATIONAIRBUS GROUP
ORGANISATIONANNUAL REVIEW 2013 — ACHIEVING OUR GOALSAS OF 1 JANUARY 2014

AIRBUSAIRBUS Commercial
AIRBUS Military

ASTRIUMCASSIDIAN

EUROCOPTER38AIRBUS GROUP ORGANISATION —Following the strategic review conducted in 2013, the Group has
adopted a simplified structure with three strong Divisions sharing
the Airbus brand name. Airbus Military, Astrium and Cassidian havebeen merged to form the Airbus Defence and Space Division.
Airbus Division remains responsible for all commercial aircraft
activities. Eurocopter is renamed Airbus Helicopters.

Revenues
EBIT*€  39,889 m€  1,595 m

L arge commercial aircraft, services

AIRBUS DEFENCE AND SPACE (1)Revenues
EBIT*€  14,422 m€  690 m

ACHIEVING OUR GOALS — ANNUAL REVIEW 2013

AIRBUS ilitary Aircraft
MSpace Systems
Communication, Intelligence and Security
Electronics

AIRBUS HELICOPTERS
RevenuesEBIT*€  6,297 m€  397 m

Helicopters
Related services(1) 2013 results restated.

39

— AIRBUS
ANNUAL REVIEW 2013 — ACHIEVING OUR GOALSAIRBUS
Comprising commercial and military activities in 2013

“THROUGHOPERATIONALIMPROVEMENT,
Airbus achieved a 6.5% year-on-yearincrease in commercial deliveries.”

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The Division (comprising commercial and militaryactivities) delivered a record number of aircraft, while
beating its target for new commercial orders andachieving significantly improved profitability.
In 2013, the consolidated revenues of Airbus Division, including
the former Airbus Military business, increased to € 42.0 billion(2012: € 39.3 billion(a)), reflecting higher deliveries.
Airbus delivered a record 626 commercial aircraft in 2013(588 in 2012). Deliveries of military transport aircraft stoodat 31 (29 in 2012), including the first two A400M aircraft
for the French Air Force.

40

The A350 XWB made its maiden flight in June 2013

The Division’s consolidated EBIT* rose to € 1,710 million(2012: € 1,252 million(a)), due mainly to a solid operational
performance in the commercial aircraft business.
In total € 354 million of A350 XWB development costs were
capitalised under IAS 38.
Net order intake increased sharply to € 202.3 billion (2012:€ 88.9 billion(a)), driven by strong commercial aircraft demand.
Airbus’ consolidated order book was valued at € 647.4 billion at
the year-end (year-end 2012: € 525.5 billion(a)), representing morethan eight years of production.
OPERATIONAL IMPROVEMENT
Through operational improvement, Airbus achieved a 6.5%
year-on-year increase in commercial deliveries while utilising thesame industrial set-up and the same product portfolio. Improved
production was mainly driven by joint investments in the supply
chain, simplified processes and increased empowerment ofoperational units.

AIRBUS —REVENUES BY MARKET
IN % OF EXTERNAL REVENUES
94% Civil
6% Defence

AIRBUS COMMERCIAL AND MILITARY€m
Revenues
R&D expenses(1)EBIT*
Order Intake
Order Book

2013

2012(a)Change42,012
2,444
1,710
202,260
647,410

39,273(a)2,439(a)1,252(a)88,909(a)525,482(a)

+7%
0%
+37%
+127%
+23%

(1) Capitalised R&D: € 364m in FY 2013 and € 445m in FY 2012.
(a) 2012 figures are pro forma, amended with IAS 19 restatement
and perimeter change.				

ACHIEVING OUR GOALS — ANNUAL REVIEW 2013

Members of the A350 XWB first flight crew

Preparation of the new Final Assembly Line in Mobile, Alabama,
USA advanced on schedule. The Mobile site is due to begin
operations in 2015 with deliveries to start in 2016. Discussions
advanced on an extension of the successful Final AssemblyLine partnership in China.

The new 242 tonne variant of the A330, which offers 500 nautical
miles more range and up to 2% less fuel burn than the current
aircraft, is planned for first delivery in mid-2015. An additional
regional A330 variant, optimised for high density domestic
routes, is scheduled for entry-into-service in early 2015.

INCREMENTAL INNOVATION
Airbus continued its strategy of incremental innovation,
upgrading existing series aircraft in order to maximise customer
benefit while minimising development risk. In 2013, Airbus
delivered 250 A320s equipped with the new sharklet wingfeatures, which have demonstrated fuel-burn savings of at least
4%. Development of the A320neo remains on track for entry-intoservice at the end of 2015.

41

— AIRBUS COMMERCIAL
ANNUAL REVIEW 2013 — ACHIEVING OUR GOALS— AIRBUS COMMERCIAL IN 2013

A321 with Sharklets

The former Airbus Commercial (Airbus as of 2014)
revenues rose to € 39.9 billion (2012: € 37.6 billion(a)),
driven by strong deliveries of series aircraft.
Airbus’ reported EBIT* was € 1.6 billion (2012: € 1.1 billion(a)) with
EBIT* before one-off at € 2.2 billion (2012: € 1.7 billion). Airbus’
reported EBIT* includes a € 434 million net charge to reflect ahigher level of costs on the A350 XWB programme. Airbus’ EBIT*
before one-off benefitted from better operational performance,
including favourable volume and some improved pricing.
In 2013, Airbus won a total of 1,619 gross commercial aircraft
orders, 1,503 net of cancellations (2012: 914 gross; 833 net).
The Airbus backlog was worth € 627.1 billion (year-end 2012:€ 505.3 billion (a)), comprising 5,559 Airbus aircraft (year-end
2012: 4,682 units).
Airbus’ order intake represents a market share of 51% of total
gross aircraft orders and 53% of net orders by units (2012: 41%
of gross orders, 42% of net orders).

42

BUOYANT SINGLE-AISLE DEMAND
Demand for single-aisle aircraft remained robust with a totalof 1,253 gross orders, 1,162 net (2012: 783 gross, 739 net).

AIRBUS COMMERCIAL —AIRBUS COMMERCIAL€m
Revenues
R&D expenses
EBIT*
Order Intake
Order Book
By numberof aircraft
Deliveries
Order Book

2013

2012(a)Change39,8892,438
1,595
199,867
627,11337,624(a)2,428(a)1,147(a)87,283(a)505,333(a)

+6%
0%
+39%
+129%
+24%

2013

2012

Change

626
5,559

588
4,682

+6%
+19%

(1)

(1) Three A330s delivered on operating lease.		
(a) 2012 figures are pro forma, amended with IAS 19 restatement
and perimeter change.			

The programme remains on track to reach breakeven EBIT*
contribution in 2015 at the level of 30 deliveries per year.

A380 (Photo Contest winner)

Single-aisle gross orders include 876 A320neo and 377
A320ceo family aircraft. Notably, Indonesia’s Lion Air placeda firm order for 234 A320 aircraft, comprising 109 A320neos,
65 A321neos and 60 A320ceos, becoming a new Airbus customer.
Strong ongoing market demand triggered a decision to increase
single-aisle aircraft production to 46 aircraft per month in 2016.
A total of 493 single-aisle aircraft were delivered during theyear (2012: 455). The A320 Family order backlog amounted
to 4,298 at the end of 2013, including 2,610 A320neo and
1,688 A320ceo aircraft.
A330 UPGRADES LAUNCHED
The A330 continued to attract customer demand, supported by
the launch of new longer range and regional variants. Airbus
booked 77 gross A330 orders in 2013 and 69 net orders (2012:82 gross, 58 net). With production increasing to the rate of 10 per
month, Airbus delivered a total of 108 A330 aircraft in 2013(2012: 103, including 2 A340s). The order backlog stood at
267 aircraft at the end of 2013.
A380 IN SERIES PRODUCTION
With production being adapted to integrate the new wing rib feetsolution, Airbus delivered 25 A380s in 2013 (30 in 2012). British
Airways became a new operator, taking delivery of its first A380
in July 2013.
Airbus received 50 A380 orders from Emirates Airline.
Additionally, Doric Lease Co. (now Amedeo) signed

A350 XWB MAKES INDUSTRIAL PROGRESSThe A350 XWB programme made significant progress, witha first test flight in June 2013 and the second test aircraft making
its first flight in October. At the end of the year the aircraft had
achieved some 800 flight hours. The flight test programme andcertification will require a total of 2,500 flight test hours.
Entry-into-service (EIS) is scheduled for the fourth quarter of 2014.
The increasing effort to prepare for the industrial ramp-up anda mature EIS triggered some higher costs in 2013.

ACHIEVING OUR GOALS — ANNUAL REVIEW 2013a Memorandum of Understanding for the purchase of 20 A380s.
At the end of 2013, the A380 order backlog amounted to
182 aircraft; 122 aircraft were already in service with ten airlines.

With 239 gross orders, 230 net, in 2013 (2012: 40 gross, 27 net),
the total A350 XWB order backlog stood at 812 at the end of 2013.

OUTLOOK

As of 2014, the Airbus Military business is integrated
within the new Airbus Defence and Space Division(see page 44), while Airbus Division remains fully
focused on the commercial aircraft business. In 2014,
Airbus is targeting commercial aircraft deliveries
at a similar level to 2013. Underlying profitability(EBIT* before one-off) should continue to improve.
Within the challenging A350 XWB programme,
management continues to focus its utmost attention
on achieving certification, preparing an efficient
series production ramp-up and securing firstdeliveries starting in the fourth quarter of 2014.
Airbus expects gross commercial aircraft orders
during the year to be above the level of deliveries.

43

— AIRBUS DEFENCE AND SPACEAIRBUS DEFENCEAND SPACE

ANNUAL REVIEW 2013 — ACHIEVING OUR GOALSThe Airbus Defence and Space Division,
created out of the former Cassidian, Astrium and Airbus
Military, aims to deliver enhanced competitiveness, market
presence and performance.

The Airbus Defence and Space Division, operational
as of January 2014, brings together a world-leading
portfolio of business assets and expertise.
The new Division is Europe’s number one defence
and space enterprise, the second largest space businessworldwide and among the top ten global defence
enterprises. Created out of the former Divisions
Cassidian and Astrium plus Airbus Military, Airbus Defence
and Space generates sales of around € 14 billion, basedon the 2013 results.
The Division is organised along four business lines whichcarry responsibility for bottom-line performance, while being
supported by fully integrated shared functions such as
marketing and sales, procurement, finance and HR.

 ilitary Aircraft is responsible for all fixed-wing aircraft,M
including combat, transport, mission and unmanned
aerial systems.
 pace Systems manages the satellite and launcherSbusinesses.

SYNERGIES
The new Divisional structure is expected to generatesignificant operational, cost and sales synergies, which
will boost competitiveness in the years ahead.
As part of the restructuring measures, the Division istargeting a substantial consolidation of sites acrossFrance, Germany, Spain and the UK. The Division istargeting a reduction of 5,300 positions, mainly throughvoluntary measures and redeployment of affected
employees to other parts of the Group.

OUTLOOK

Going forward, Airbus Defence and Space
expects to generate revenues above € 13 billion,
with increasing A400M deliveries. Due toa change in accounting rules, the MBDA
participation will be accounted for at equity.
Supported by the restructuring programme,
Airbus Defence and Space is targetinga return on sales of 8% in 2015, moving
towards 10% beyond.

Communication, Intelligence and Security (CIS)
brings together competences in communications
technology, including secure satellite communications,public mobile radio and border security systems.
 lectronics represents a centre of excellence forE
sub-systems, with the necessary critical size to support
the Division’s other business lines while also acting as acompetitive supplier towards external customers.

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44

— AIRBUS MILITARY IN 2013

“REVENUESWEREDRIVEN€m
Revenues
R&D expenses
EBIT*
Order Intake
Order Book
By numberof aircraft
Deliveries
Order Book

2013

2012

Change

2,893
6
166
2,592
20,814

2,131
11
93
1,901
21,139

+36%
-45%
+78%
+36%
-2%

2013

2012

Change

31
206

29
220

+7%
-6%

AIRBUS MILITARY —AIRBUS MILITARY

by the A400M ramp-up andhigher volumes for tankers
and medium and light aircraft.”

Revenues at the former Airbus Military rose to€ 2.9 billion (2012: € 2.1 billion) with an EBIT* of€ 166 million (2012: € 93 million). A total of 31 militarytransport and tanker aircraft were delivered (2012:29 aircraft).
In total, 17 net orders were received (2012: 32 net orders).
Airbus Military’s order book was worth € 20.8 billion at year-end(2012: € 21.1 billion).
A400M ENTERS SERVICE
Following Type Certificate and Initial Operating Clearance,
the A400M made its entry-into-service in 2013. Two A400Ms
were delivered to the French Air Force and the aircraft began
service in Mali.
At the end of 2013, ten aircraft were in the final assembly line and
16 additional aircraft in various stages of production or assembly.
Progressive enhancement of military capability is planned withsubsequent upgrades in line with customer discussions.
An initial contract was signed with OCCAR (Organisation
Conjointe de Coopération en matière d’Armement) acting on
behalf of France, for an 18-month A400M support services
package. Discussions to provide other customers with support
services are progressing.
The current A400M order book comprises 172 aircraft, with
168 allocated to the seven launch customer nations and four to one
export customer, Malaysia. Airbus estimates a market potential
for approximately 400 export orders over the next 30 years.
TANKER PROGRESSIn 2013, seven A330 MRTT aircraft were delivered (2012: five),
including three to the United Arab Emirates. Known as the“Voyager” in the UK, the A330 MRTT began training for in-flightrefuelling with the UK Royal Air Force.
The MRTT aircraft has been selected as part of a preferred bid
by the Indian Air Force for potentially six tanker aircraft and final
contractual negotiations are under way. Additionally, the French
Ministry of Defence has announced an intention to order twelve
MRTTs. Campaigns in other countries are on-going.

The first A400M was delivered to France in 2013

At the end of 2013, 17 A330 MRTT aircraft were in service withfour countries. Six new orders were booked from Singapore,bringing the backlog at the end of 2013 to 17 aircraft. Airbus
estimates a potential total export market, excluding the US, of
more than 100 tanker aircraft.
MEDIUM AND LIGHT SEGMENT DELIVERIES
Within the medium and light segment, 22 aircraft were deliveredin 2013 (2012: 20), including two CN235 maritime patrol aircraft
for the US Coast Guard, three CN235 transport aircraft and14 C295 aircraft. Three upgraded P-3 Orion aircraft were handed
over to the Brazilian Air Force. Ten new orders were booked,
including one CN235 and nine C295 aircraft.
A number of export campaigns are under way, including
a campaign to replace 56 Indian Air Force transports withthe same number of C295s.

OUTLOOK

As of 2014, the former Airbus Military is fully
integrated within the new Airbus Defence and Space
Division (see page 44 for details and outlook).

45

— CASSIDIAN— CASSIDIAN IN 2013

ANNUAL REVIEW 2013 — ACHIEVING OUR GOALS“OPERATIONALIMPROVEMENT
and restructuring initiatives launchedat the end of 2012 have beena strong driver for the improvementin underlying profitability.”

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www.reports.airbus-group.com

The former Cassidian Division delivered an improved
performance while adapting the business to the changed
defence environment. As of 2014, the Division’s activities
are integrated within Airbus Defence and Space.
Revenues at the former Cassidian Division rose by 4% to€ 6.0 billion in 2013 (2012: € 5.7 billion) with an EBIT* of € 432
million (2012: € 128 million(a)). The operational performancereflected good programme execution across the Division.
Integrated systems and electronics projects developed positively,
while military aircraft programmes continued to support revenues
and profitability. Operational improvement and restructuringinitiatives launched at the end of 2012 have been a strong driver
for the improvement in underlying profitability.
Net order intake remained flat at € 5.0 billion (2012: € 5.0 billion).
At the end of 2013, the order book stood at € 14.3 billion(year-end 2012: € 15.6 billion).

46

The 400th Eurofighter Typhoon was delivered to Germany in 2013 (Photo Contest winner)

Within the Eurofighter programme, the Oman order achievedat the end of 2012 was booked in the early part of the year.
In addition, the Eurofighter consortium signed a contract for the
integration of the Meteor air-to-air missile system on board thefighter aircraft. Exports are being targeted in the Middle East
and Asia as well as further upgrades from the core nations.
The continued strong delivery performance and customer
support is demonstrated by the 400th Eurofighter being deliveredin December 2013.
The MBDA joint venture saw strong order intake from Europe andexport markets. A development and production contract was
signed with France for a successor to the Milan missile. Following
the production contract from Germany, all six European Partner
Nations have now placed production orders for the Meteor
air-to-air missile.
Export orders were secured in the Middle East and Asia for Storm
Shadow stand-off missiles, the Aster air-defence system and
Mistral-based air-defence systems. In a successful test firing at
the end of 2013, the Medium Extended Air Defense System

CASSIDIAN —REVENUES BY MARKET
IN % OF EXTERNAL REVENUES
15% Civil
85% Defence

CASSIDIAN€m
Revenues
R&D expenses
EBIT*
Order Intake
Order Book

2013

2012(a)Change

5,976
248
432
4,974
14,2965,740(a)234(a)
128(a)
5,040(a)15,611(a)

+4%
+6%
+238%
-1%
-8%

(a) 2012 figures are pro forma, amended with IAS 19 restatement.

ACHIEVING OUR GOALS — ANNUAL REVIEW 2013

(MEADS) intercepted and destroyed simultaneously two targets
approaching from opposite directions.
Further progress was made in de-risking border security
contracts.
PRODUCT AND SYSTEMS DEVELOPMENT
Activities in the area of Unmanned Aerial Systems (UAS)
continued. The Atlante, a Spanish UAS designed for both militaryand civil use, performed its maiden flight, while the signal sensor
ISIS was successfully tested on the Eurohawk platform.
In addition, Cassidian teamed with Dassault Aviation and
Finmeccanica in proposing a European MALE (Medium
Altitude, Long Endurance) solution.
Portfolio and market position in the field of cyber security wasstrengthened through the acquisition of an 83.9% stake inArkoon Network Security. Following the acquisition of Netasq in
2012, the acquisition of Arkoon Network Security represents
a further step in the creation of a European industrial base forcyber-security products and solutions.

Among several enhancements to radar systems, the Division
introduced a new naval X-band radar for detecting small objects.
Using optimised Active Electronically Scanning Array technology,
the sensor will help to protect ships against terrorist attacks.
Several contracts were signed to supply Professional Mobile
Radio (PMR) technology, including a contract to update andexpand the Beijing government’s shared Tetra network.

OUTLOOK

As of 2014, the former Cassidian is fully integrated
within the new Airbus Defence and Space Division(see page 44 for details and outlook).

47

— ASTRIUM
ANNUAL REVIEW 2013 — ACHIEVING OUR GOALS— ASTRIUM IN 2013

“VOLUME AND
PRODUCTIVITY

in launchers, defence and satellites helped
to mitigate lower services activity.”

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www.reports.airbus-group.com

Order momentum continued at the Group’s former
Astrium Division driven in particular by Ariane 5 launcher
demand. As of January 2014, the Group’s space
activities have been integrated into the Airbus Defence
and Space Division (see page 44).
Revenues at the Group’s former Astrium Division remained
broadly stable in 2013 at € 5.8 billion (2012: € 5.8 billion),driven in particular by the launcher and satellite businesses.
EBIT* increased to € 347 million (2012: € 311 million(a)). The EBIT*
improvement reflected good performances in the launchers,
defence and satellites businesses, which mitigated lower service
activity stemming from stronger competition and budget
decreases in the governmental business.
Order intake rose sharply to € 6.2 billion in 2013 (€ 3.8 billion in2012). At the end of the year, the order book stood at € 13.1 billion(€ 12.7 billion in 2012).

48

Four successful Ariane 5 launches conducted in 2013

The Ariane 5 continued to demonstrate its reliability with four
launches in 2013, bringing up the 57th consecutive launch successand an 11th year of uninterrupted success. In all, six Ariane 5
launchers were delivered during the year (2012: six).
Six company-built satellites were successfully delivered in 2013(2012: nine), comprising three telecommunications and three
Earth observation and science satellites, including Gaia, the mostadvanced space telescope ever.
The fourth Automated Transfer Vehicle (ATV), built by thecompany, successfully completed its mission to the International
Space Station (ISS). ESA awarded the company a € 195 million
service contract relating to operating and maintaining the ISS.
Notable new orders included a frame contract from Arianespacefor 18 additional Ariane 5 launchers to be used from 2017, with anorder intake impact of € 1 billion in 2013. This latest order brought
the backlog of Ariane 5 launchers to 38 at year-end.
To meet emerging market requirements, including the advent ofsmall and medium satellites with electric propulsion systems,

ASTRIUM —REVENUES BY MARKET
IN % OF EXTERNAL REVENUES
67% Civil
33% Defence

ASTRIUM€m
Revenues
R&D expenses
EBIT*
Order Intake
Order Book

2013

2012(a)Change

5,784
127
347
6,169
13,077

5,817(a)128(a)
311(a)
3,761(a)12,734(a)

-1%
-1%
+12%
+64%
+3%

(a) 2012 figures are pro forma, amended with IAS 19 restatement.

ACHIEVING OUR GOALS — ANNUAL REVIEW 2013

the company is advancing an upgraded Ariane 5 ME launcher,which will offer greater flexibility. A first launch could be carriedout as early as 2018. Beyond the Ariane 5 ME, the Ariane 6 isplanned to meet the needs of both government and commercial
customers by offering competitive launch rates for large andsmall satellites alike. In 2013, the company received contracts
from the European Space Agency (ESA), with an order intake
outcome of € 360 million combined for the development of
the Ariane 5 ME and Ariane 6 launch vehicles.
Orders were booked for a total of 5 satellites (2012: three).
Three telecommunication satellite contracts were signed, notably
with Telesat and DirecTV. A € 344 million contract was signedwith the German Armed Forces for a reconnaissance radar
satellite, representing another breakthrough.
In March 2013, Pléiades 1B and SPOT 6 entered into service
following their in-orbit validation, enabling the Division to offer
high definition images of any point on the globe on a daily basis.
In addition, the fourth UK Ministry of Defence Skynet 5 satellite,
built and operated by the company, entered into service.

With the Skynet 5 system and newly leased Anik G1 payload,
Airbus Defence and Space is the only commercial company able
to provide a military satellite communication constellation with
global coverage.
A strategic distribution partnership was signed with Inmarsat
for broadband services. The new Global Xpress service is theworld’s first globally available high-speed broadband service
delivered via Ka-band satellite network.

OUTLOOK

As of 2014, the former Astrium is fully integrated
within the new Airbus Defence and Space Division(see page 44 for details and outlook).

49

— EUROCOPTER— EUROCOPTER IN 2013

ANNUAL REVIEW 2013 — ACHIEVING OUR GOALS“PROFITABILITYWAS DRIVEN

by increased deliveries of lighthelicopters, strong deliveriesof heavy platforms and services.”

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Airbus Helicopters increased deliveries in 2013, while
capitalising on the new Airbus name to launch atransformation plan focusing on customers, quality,
safety and competitiveness.
Airbus Helicopters (formerly Eurocopter) finished 2013 withrevenues stable at € 6.3 billion and with deliveries rising to497 helicopters (2012: 475 helicopters). Platform turnover in 2013
represented 58% of the Division’s revenues, while Services
accounted for the remaining 42%.
Based on 2013 deliveries, Airbus Helicopters’ market share in thecivil and parapublic market stood at 46%. In terms of units sold,Airbus Helicopters thus remains the world’s leading manufacturerof helicopters.
Notable deliveries included the first NH90 NFH (NATO Frigate
Helicopter) for the Belgian Armed Forces and the first Tiger
helicopter in the HAD attack configuration for France.

50

Airbus Helicopters’ civil and parapublic market share was 46% in 2013

Civil helicopter activities represented 55% of revenues. Militaryactivities accounted for the remaining 45%.
The Division’s EBIT* stood at € 397 million (2012: € 309 million(a)).
The EBIT performance in 2013 was driven by increased deliveriesof light helicopters, strong deliveries of heavy platforms, andactive support and services.
Recovery measures put in place for the Super Puma/EC225 led
to its return to service with all operators.
Reflecting the company’s improved access to emerging markets
and adaptation to local mission requirements, 72% of thebusiness was generated outside of France, Spain and Germany.
Order intake amounted to € 5.8 billion (2012: € 5.4 billion).
The Division booked 422 net helicopter orders (2012: 469 net
orders). Super Puma family orders totalled 33. Included in
the bookings was an order for 34 NH90 Tactical Transport
Helicopters from France.
The Division signed a Memorandum of Understanding with
the German Government reducing the overall number ofTigers and NH90s to be delivered while adding a naval variant.
At the end of 2013, the order book stood at € 12.4 billion(year-end 2012: € 12.9 billion), comprising 995 helicopters(year-end 2012: 1,070 helicopters).

EUROCOPTER —REVENUES BY MARKET
IN % OF EXTERNAL REVENUES
55% Civil
45% Defence

EUROCOPTER€m
Revenues
R&D expenses(1)EBIT*
Order Intake
Order Book

2013

2012(a)Change

6,297
306
397
5,775
12,4206,264(a)297(a)
309(a)
5,392(a)12,942(a)

+1%
+3%
+28%
+7%
-4%

(1) Capitalised R&D: € 36m in FY 2013 and € 22m in FY 2012.
(a) 2012 figures are pro forma, amended with IAS 19 restatement.

ACHIEVING OUR GOALS — ANNUAL REVIEW 2013

INNOVATION DRIVE
Airbus Helicopters continued its drive to renew the existingproduct range for future growth. Both the new EC175 mediumweight twin-engine helicopter and the upgraded EC145 T2 lighttwin are equipped with the new state-of-the-art Helionix
avionics system. The power and performance of the EC175
were demonstrated by two vertical speed records validated
in 2013. European Aviation Safety Agency (EASA) certification
for the EC175 was received in January 2014, paving the wayfor entry-into-service.
Development continued on the new X4 medium-weight helicopter,
which will offer improved performance, reduced fuel consumption,and lower sound levels. The X3 high-speed hybrid demonstrator
marked a new milestone in the company’s innovation roadmap,
combining vertical takeoff and landing capabilities withachievement of the world speed record. The optionally piloted
EC145 demonstrator proved unmanned flight capabilities.
INTERNATIONAL PRESENCEThe Division continued to expand its international presence,
announcing plans for a new final assembly line in the UnitedStates and a potential full industrial setup in Poland, dependent
on Poland’s strategic decision in the field of defence.
A high-technology component factory was opened in Mexico,while an EC225 training facility was opened in Norway.

OUTLOOK

A key priority in 2014 will be to achieve successful
entry-into-service of the new EC175 and the EC145
T2 helicopters. As of February 2014, 15 EC175s
were in production, with the three launch customers
scheduled to receive delivery later in the year.
An upswing in order bookings for this helicopter is
expected in 2014.
Increased production rates will be implemented
for the military NH90, Tiger and EC725 helicopters
during 2014.
The Division’s strategy will drive improvement
initiatives related to its transformation plan, whichaims at placing customer satisfaction and quality at
the core of operations as well as improving industrial
competitiveness, while ensuring the highest levelsof aircraft safety. Airbus Helicopters has also
implemented plans to reduce costs, optimise cash
and create value.

51

ANNUAL REVIEW 2013 — WE MAKE IT FLY

Key Drivers. Group-wide support activities are reinforcing the common Company
culture, fostering integration and strengthening long-term value creation.

52

KEY FINANCIALS 2013 —WE MAKE IT FLY — ANNUAL REVIEW 2013/ 04
“BUILDINGOUR
CULTURE”

53

— ENGAGED PEOPLE

Airbus Group sees employee
engagement as a key driverof company performance.

ENGAGEDPEOPLEANNUAL REVIEW 2013 — BUILDING OUR CULTURE

Airbus Group is committed to ensuring a talent pipeline
drawing from all backgrounds.

In 2013, the Group recruited 8,823 employees worldwide (11,080
in 2012), while 4,160 employees left the company (4,042 in 2012).
Overall, the workforce stood at 144,061 at year-end 2013
(year-end 2012: 140,405). The increase was mainly driven by thecontinued industrial ramp-up in the commercial aircraft business.
Given strong growth perspectives in the commercial aircraft
market and the need both to maintain strategic competences
and foster innovation in an increasingly competitiveenvironment, Airbus Group is committed to ensuring a talentpipeline drawing from all backgrounds. According to both theTrendence and Universum graduate surveys, the Group was
ranked the most attractive employer amongst Frenchengineering students in 2013. International HR services
company Randstad ranked the Group as the most attractive
employer for experienced professionals in Spain and number
three in Germany.
DIVERSITY AND INCLUSION
Airbus Group is committed to diversity and inclusion, recognising
the need to nurture outstanding talent wherever available and thevalue and increased performance a diverse workforce can bringto the business. The Group’s diversity strategy focuses inparticular on equipping leaders and teams to understand andleverage diversity in the workplace. This includes reviewing
processes, policies and training to support the diverse
workforce, changing mindsets with regard to existing
stereotypes, encouraging more women, internationally andsocially diverse and disabled candidates and benchmarking
and partnering with external organisations.
In 2013, 20.9% of new recruits to the company were women (21.4%
in 2012) and women made up 17% of the active workforce (17.3%
in 2012). By 2020, Airbus Group aims to increase the share ofwomen recruited to 25% and the share of women within the senior
manager and executive community to 20%.

54

In terms of nationalities, European employees make up the bulkof the workforce. French employees accounted for 37.1% (38.5%
in 2012), German 33.4% (32.9% in 2012), UK 9.2% (9.3% in 2012)

ENGAGED PEOPLE —programme. Furthermore, the Group allocated ten free sharesto each employee.
Airbus Group actively supports employee development throughtraining and career moves within the company. In 2013, morethan 10,000 employees took up the opportunity to move to a
new department, site or country. Additionally, the Group
provided employees with a total of some 3.9 million hours of
training (2012: 3.2 million hours).
SOCIAL DIALOGUE
Airbus Group maintains constructive relations with its social
partners. In 2013, the Group successfully managed the relocationof Group Headquarters. In 2014, the Group will again be working
in close cooperation with social partners to ensure that the
restructuring at Airbus Defence and Space and Corporate
Functions is carried out in a socially responsible manner.

and Spanish 8.4% (8.2% in 2012). US nationals accounted for
1.7% of employees (1.7% in 2012). The remaining 10.1% were
nationals of 130 other countries.
In 2013, the average age of employees Group-wide was
43 years. Some 12.8% of the active workforce were younger
than 30 years old, 29.2% were above 50 years old. Average
years of service stood at 13.5 years (13.7 in 2012).
ENGAGEMENT
Airbus Group sees employee engagement as a key driver ofcompany performance. The Group is actively encouraging
teams to improve engagement, and promoting exchange ofbest practices as well as targeting leadership development andcorporate policies that could have an impact on engagement.
Progress will be monitored through the forthcoming engagement
survey to be conducted in 2014.
Employee share ownership is encouraged as a further meansof strengthening engagement and commitment to the successof the company. Some 22% of employees bought company
shares in 2013, as part of the employee share ownership

BUILDING OUR CULTURE — ANNUAL REVIEW 2013

Airbus Group employees celebrate the first A350 XWB flight

INTEGRITY IN PRACTICE

While fostering a culture of high performance,
Airbus Group's top management emphasises that
it is not only results that matter, but the way they areachieved. Integrity is considered a paramount value
in the Group. In 2013, the “Standards of BusinessConduct” were updated and implemented acrossthe Group. In addition a company-wide document“Our Integrity Principles”, outlining the Group’s key
integrity commitments in a simple user-friendly
format was rolled out across the Group andexplained by managers to each individual employee
in team meetings. Airbus Group is committed tobuilding a culture of integrity by providing employeeswith the right tools and role-modelling the rightbehaviour.

55

— ECO EFFICIENCYANNUAL REVIEW 2013 — BUILDING OUR CULTURE

ECOEFFICIENCY

Airbus Group continues to invest in eco-efficient innovation
which creates value for customers while reducing emissions.

In 2013, Airbus Group continued its investment in improved
aircraft fuel-efficiency, while researching on new energies,
such as sustainable aviation fuel sources and electric propulsion,and taking steps to cut waste and emissions within its
industrial processes.
NEXT-GENERATION AIRCRAFT
Airbus’ growing portfolio of next-generation aircraft is supporting
air traffic growth, while minimising fuel costs per seat and CO2
and other emissions, including noise.
At the end of 2013, the global fleet of A380 aircraft had grown
to 122. Each A380 is 20% more fuel efficient than its nearest
competitor. The aircraft also generates less than half the noise
on departure of its nearest competitor and three to four times
less noise on landing.

56

Hybrid propulsion systems agreement with Airbus Group, Siemens and Diamond Aircraft

The A350 XWB, due to enter into service in the fourth quarterof 2014, burns 25% less fuel than its previous generationcompetitor. The A320neo, due for delivery in 2015, will consume
15% less fuel than existing single-aisle aircraft and the A320
family sharklets already in operation are demonstrating morethan 4% improvements in fuel burn.
Aircraft innovation has allowed fuel burn and noise reductionsof 70% and 75% respectively in the last 40 years, according
to the Airbus Global Market Forecast 2013-2032. According to
the IPCC, aviation contributes around 2% of all man-made CO2(carbon dioxide) emissions.
Airbus Group is researching advanced technologies that willlead to alternative sources of on-board power for aircraft.
In 2013, company research into the use of fuel cells won aprestigious ‘GreenTec Award’ in the aviation category. Fuelcells produce electricity through the combination of hydrogenand oxygen and enable emission-free and noise reduced
aircraft operation on the ground and efficiency advantages
in the air. Integration and the use of fuel cell by-products suchas water, inert gas and waste heat reduce the total weight andallow for improved energy efficiency.
Airbus also formed agreements to research the development
and commercialisation of sustainable fuels for aviation incountries such as Canada, Russia and China.

ECO EFFICIENCY —Airbus Group is researching advanced
technologies that will lead to alternative
sources of on-board power for aircraft.

Together with its customers and partners, Airbus Defence andSpace is contributing to a more sustainable society throughspacecraft and technologies under development. The Division is
the prime contractor for four of the six ESA Living Planet missions– Cryosat-2, Swarm, Aeolus and EarthCARE. In 2013, the trio of
Swarm satellites was launched into orbit, from where they willmeasure the Earth’s magnetic field.
SPOT 6 earth observation satellite

Improved Air Traffic Management (ATM) promises significant
improvements in eco-efficiency. The Group is playing animportant role in ATM programmes such as “Single European
Sky ATM Research” (SESAR) in Europe, and NextGen in the US.
Airbus ProSky, which supplies ATM performance improvement
solutions, was awarded a contract to study cost effective waysof reducing fuel consumption in the Asia-Pacific region.
MONITORING THE ENVIRONMENT
As a leading satellite system specialist, the Group’s Defence
and Space Division has extensive expertise and operational
mission experience in the field of Earth observation. Throughthe SPOT, Pléiades, and TerraSAR-X constellations, satellite
imagery is used to monitor natural resources, measure andmitigate deforestation and forest degradation, and survey
the growth of mega-cities.

BUILDING OUR CULTURE — ANNUAL REVIEW 2013

A320neo

In November 2013, the Airbus Defence and Space greenhousegas emissions measurement service was among businessinitiatives included in the Climate and Energy Action Hub thatwas presented during the Caring for Climate Business Forumat COP19 in Warsaw. This new monitoring service allows
governments, cities and local authorities to directly measureeffectiveness of their emission reduction policies. The newservice has already begun emissions mapping in Paris andRotterdam, following testing in London.
CLEANER PRODUCTION
The Group is working across Divisions to reduce theenvironmental impact of industrial operations. Airbus has
continued its blue5 initiative, which has specific goals for 2020
(from a 2006 baseline). These include 50% reductions in CO2emissions, water consumption, waste production and volatileorganic compound (VOC) emissions; a 30% reduction inenergy consumption and an 80% reduction in industrial
water discharge.

57

—INNOVATIONANNUAL REVIEW 2013 — BUILDING OUR CULTURE

Airbus Group holds approximately
37,000 patents worldwide.

INNOVATION
Airbus Group remains committed to retaining its capacity
to generate breakthrough aerospace technologies.
In the area of new product development, the Group is focusing efforts
on maximising value out of existing platforms.

The capacity to develop breakthrough aerospace technologies
is a key asset for the Group. In 2013, the Group’s self-financed
research and development (R&D) expenses were stable at€ 3,160 million (2012: € 3,142 million). Investment in the areaof early-stage research and technology was in line with theprevious year in absolute terms, accounting for close toa third of the Group’s R&D expenses. In 2013, the Group
capitalised € 354 million of development costs for the
Airbus A350 XWB programme.
Development activity within the commercial aircraft business
was driven mainly by the A350 XWB programme, with flight tests
advancing significantly in 2013. In addition, Airbus pursued its
strategy of bringing incremental improvements to existing
platforms. Development remained well on track on the A320neo.
A lower-weight variant of the A330 was launched for regional anddomestic operations.
Within Airbus Helicopters, development continued on the new
EC175 medium-weight twin-engine helicopter and the EC145T2
light twin upgrade, both of which are due to enter service in 2014.
Development on the new X4 medium-weight helicopter
is also advancing.

58

INTELLECTUAL PROPERTY AND TECHNOLOGY
LICENSING
Overall, the Group’s engineers filed a total of 990 priority patentapplications in 2013. Recognising the company’s track record at
the forefront of research and technology worldwide, Thomson
Reuters listed the Group among its Top 100 Global Innovators,
while Booz & Co placed it within the top 50.
The Group launched a cyber security initiative in 2013

INNOVATION —Airbus Group holds approximately 37,000 patents worldwide.
Through its technology licensing initiative, the Group markets
intellectual property in fields such as composites, metallics,
green technologies, safety and security technologies andcommunications infrastructure.
EARLY-STAGE RESEARCHGroup research and technology activities are managed by
Airbus Group Innovations, which employs over 1,000 scientists
and researchers, including doctorates and interns, at facilities inFrance, Germany, UK, Spain, USA, Canada, Singapore, India
and China. Airbus Group Innovations develops the Group’s
technical potential from readiness level one to three – i.e. fromidentification of underlying technology principles to laboratory
studies to physically validate analytical predictions.
Amongst technology highlights in 2013, Airbus Group Innovations
together with partners unveiled a fully electric general aviation
training aircraft. With two electrical engines driving shrouded
propellers, the E-Fan demonstrator also features an innovative
main landing gear which allows electrical taxiing on the groundwithout the main engines and provides acceleration during
take-off up to a speed of 60 km/h.
CYBER SECURITY
In 2013, a cyber security initiative was launched for the entire
Group, which will bring a major boost in cyber awareness andimprovements in the level of protection. A cyber security
improvement plan has been implemented focusing on
information communication technology, product security andindustrial control system security.

IMPROVING QUALITYThe Group is also committed to developing innovative solutions
to enhance manufacturing processes and quality. A 3D imaging
tool, named MiRA (Mixed Reality Application), developed forfitting brackets with the aid of hand held devices, has been
adopted within space and helicopter manufacturing operations.
Airbus has successfully used MiRA since 2012.

BUILDING OUR CULTURE — ANNUAL REVIEW 2013

The E-Fan electric training aircraft

At a broader level, the Group has launched a major drive to gain
performance and competitive advantage through quality.
This initiative is a key priority for 2014.

59

— SUPPLY CHAIN / PROGRAMME MANAGEMENT

SUPPLYCHAIN/PROGRAMMEMANAGEMENTANNUAL REVIEW 2013 — BUILDING OUR CULTURE

Airbus Group closely manages its supply chain,
which makes a vital contribution to the success of the business.

The external supply chain represents a major share of the valueof Airbus Group products. For 2013, the ratio of external sourcing
turnover to Group revenues is expected to be in line with theprevious year at approximately 70%. Sourcing turnovercomprises payments to tier one suppliers based on invoices
for goods and services, including fees.
In 2012, the latest year for which consolidated data is available,
the Group’s external sourcing turnover amounted to some
€ 39.5 billion. The increase of roughly 12% on the previous year
was mainly due to the production ramp-up in the commercial
aircraft business. Aircraft propulsion systems accounted
for 30%, structure & airframe for 15%, systems & equipment for
14%, production material for 10% and product related services

60
First A350 XWB nose section unloaded from a Beluga aircraft

for 8% of external sourcing turnover. Indirect material,
representing goods and services which are not directly
attributable to sold products and services, accounted
for 23% of external sourcing turnover.
Europe continued to account for the major share of external
turnover, representing 71% in 2012. North America represented
26% of the Group’s external spend.
Increasing the share of procurement in US dollars remains a
strategic goal for the Group, as a means of reducing exchange
rate risk. Some 49% of external sourcing turnover in 2012 wasbooked in US dollars (47% in 2011), with 44% in euros (46% in2011); 6% was booked in sterling and 1% in other currencies.

SUPPLY CHAIN / PROGRAMME MANAGEMENT —Increasing the share of
procurement in US dollars
remains a strategic goal
for the Group.

BUILDING OUR CULTURE — ANNUAL REVIEW 2013

In 2012, the company ordered goods and services valued
at some € 39.9 billion, a slight increase on the previous year.
Order volumes comprise the overall value of contracts signedwith suppliers (rather than invoiced amounts) and are basedon purchase orders.
US dollar contracts accounted for 54% of the total volumeof newly placed orders in 2012, while 39% was in euros, 6%
in sterling and 1% in other currencies.
GLOBAL SOURCINGThe Group continued to develop the supply chain beyond
Europe, as a means of gaining access to growth markets andincreasing natural currency hedging.
Country sourcing offices in India, China, the US and Brazil wereassigned broader roles with responsibilities for developing
supply chain activities respectively in the Middle East, East Asia,
North America and South America. Development of the private
aerospace sector has supported increasing supply chain activity
in emerging countries.
MANAGING SUPPLIER RISK AND QUALITYThe Group takes a proactive approach towards the supply chain
in order to anticipate and mitigate potential issues, particularly in
relation to ongoing production ramp-ups and the challenging
series production of the A350 XWB. Group-wide procurement
boards continued to exchange best practices, monitor supplierperformance and meet common suppliers.
In 2013 a compliance risk assessment of the Supply Chain was
performed aimed at mapping risks associated with the procurement
process, taking into account a variety of topics such as geopoliticalsituation, sensitive countries, corruption risk, tax havens, sensitive
commodities and procurement process compliance.
This assessment led to a strengthened procurement process
and an implementation of further procurement compliance
Key Performance Indicators (KPIs).
PROCUREMENT ACADEMYThe Airbus “Procurement Academy” was extended in 2013 to
the whole Airbus Group in order to harmonise procurement job
profiles, competences and skills across the group. As its key
measures, the Academy will introduce a set of centralised
training solutions, covering the complete supply chain perimeter.

PROGRAMME MANAGEMENT

Professional programme management is a key driverof Airbus Group’s operational performance. In recent
years, the Group has established a ProgrammeManagement continuous improvement setup to
define and deploy state-of-the-art policies and tobuild up and maintain the necessary competencies.
As part of the cultural change, ProgrammeManagement has been established as a core
discipline with a defined career path. Advances
seen in a number of key Group programmes
illustrate the progress achieved. In order to maximise
effectiveness, the Group is looking to promote
professional programme management policies rightthrough into the supply chain.

61

— SHAREHOLDER INFORMATIONSHAREHOLDERINFORMATIONANNUAL REVIEW 2013 — WE MAKE IT FLY

www.airbus-group.com

FINANCIAL CALENDAR
FULL YEAR 2013 RESULTS RELEASE

26 February 2014
FIRST QUARTER 2014 RESULTSRELEASE

13 May 2014
ANNUAL GENERAL MEETING

27 May 2014, Amsterdam,
The Netherlands
PRIVATE SHAREHOLDERINFORMATION MEETINGS

1 July 2014, Paris, France
3 July 2014, Munich, Germany
HALF YEAR 2014 RESULTS RELEASE

30 July 2014

The Airbus Group Investor Relations and Financial
Communications team aims to keep investors and otherfinancial market players fully informed about the Group’s
strategy, operations and financial results.
In 2013, 860 meetings were organised with institutional investors
worldwide, comprising some 70% of the free float. The Group’s
annual Global Investor Forum, held in London in December 2013
and attended by more than 160 institutional investors andanalysts, was broadcast live on the Company website.
In addition, the team met individual shareholders in more than
20 information meetings and dedicated site visits in France,
Germany, Spain and the UK.
A comprehensive range of Company information anddocumentation, including the Group Annual Report, quarterly
financial releases, Annual General Meeting documents andthe shareholder newsletter aero-notes is available in English,
French, German and Spanish.

NINE-MONTH 2014 RESULTS RELEASE

14 November 2014

INVESTOR RELATIONS CONTACT DETAILS
Toll-free telephone numbers
France:0 800 01 2001
Germany: 00 800 00 02 2002
Spain:
00 800 00 02 2002

62

International Number: + 33 800 01 2001
E-mail: airbus-group.ir@eads.com
iPad Application: Airbus Group Investors

PHOTO CONTEST —PHOTOCONTESTOver a two month period ending 15 January 2014, Airbus Groupinvited aviation enthusiasts to participate in
the “Through Your Eyes” Photo Contest and show their talents.
The 3 winning photographs have been published in the Annual Report.
The winners are Ramon Jordi, Christian Böhme and Robert Oram.

WE MAKE IT FLY — ANNUAL REVIEW 2013

N°1. A400M (PAGE 07)
Taken on 11 April 2013 inToulouse Blagnac, France
by Ramon Jordi

N°2. A380 (PAGE 42)
Taken on 29 September 2013 in Dresden, Germany
by Christian Böhme

N°3. EUROFIGHTER (PAGE 46)
Taken on 20 July 2013 in Fairford, UK
by Robert Oram63

ADDRESSESANNUAL REVIEW 2013 — WE MAKE IT FLY

AIRBUS
1, rond-point Maurice Bellonte
31707 Blagnac cedex
FranceTel + 33 5 61 93 33 33

AIRBUSDEFENCE AND SPACE
Landshuter Strasse 26
85716 Unterschleissheim*
GermanyTel + 49 89 3179 0*Subject to relocation.

AIRBUSHELICOPTERS
Aéroport International
Marseille Provence
13725 Marignane cedex
FranceTel + 33 4 42 85 85 85

REGISTERED OFFICE

HEADQUARTERS

Airbus Group
Mendelweg 302333 CS Leiden
The Netherlands
Tel + 31 71 524 56 00

Airbus Group
Auriga Building
4, rue du Groupe d’Or - BP 90112
31703 – Blagnac cedex - France
Tel +33 5 81 31 75 00
Fax + 33 5 81 31 79 00

OTHER
CORPORATEOFFICESAIRBUS GROUP STRATEGYAND MARKETING ORGANISATIONTEL + 33 1 42 24 24 24 - FAX + 33 1 42 24 26 19

FranceRepresentative offices

37, bd de Montmorency
75781 Paris cedex 16
FranceTel + 33 1 42 24 24 24

EuropeBrussels, Belgium
Tel + 32 2 504 78 11

Latin America
São Paulo, Brazil
Tel + 55 11 3093 2800

Germany

Berlin, Germany
Tel + 49 30 259 269 11

Santiago de Chile, Chile
Tel + 56 23 33 43 33

81663 Munich - Germany
Tel + 49 89 607 0Oslo, Norway
Tel + 47 22 00 95 50

Mexico City, Mexico
Tel + 52 55 47 77 51 00

Spain

Warsaw, Poland
Tel + 48 22 627 05 28

Central Asia
Astana, Kazakhstan
Tel + 771 72 99 05 01

Avenida de Aragón 404
28022 Madrid - Spain
Tel + 34 915 85 70 000
USA
Airbus Group, Inc.
2550 Wasser Terrace,
Suite 9000
Herndon, VA 20171 - USA
Tel + 1 703 466 5600

Moscow, Russia
Tel + 7 495 797 53 67
Ankara, Turkey
Tel + 90 312 439 89 64
London, United Kingdom
Tel + 44 207 845 84 00
Middle East
Cairo, Egypt
Tel + 20 2 279 486 71
Muscat, Oman
Tel + 968 244 92 760
Doha, Qatar
Tel + 974 4 411 0752
Riyadh, Saudi Arabia
Tel + 966 1 88 07 420
Abu Dhabi, UAE
Tel + 971 2 657 89 00
AfricaAlgiers, Algeria
Tel + 213 21 92 77 28
Centurion, South Africa
Tel + 27 12 6868 900

64North America
Ottawa, Canada
Tel + 1 613 230 39 02

Asia
Sydney, Australia
Tel + 61 2 88 64 05 00
Beijing, China
Tel + 86 10 64 61 12 66
Bangalore, India
Tel + 91 80 4031 2500
New Delhi, India
Tel + 91 11 4580 1100
Jakarta, Indonesia
Tel + 62 21 57 97 36 15
Kuala Lumpur, Malaysia
Tel + 60 3 2163 0233
Singapore, Singapore
Tel + 65 63 25 03 80
Seoul, South Korea
Tel + 82 2 327 96 702
Taipei, Taiwan
Tel + 886 2 2712 15 94
Bangkok, Thailand
Tel + 662 610 4300
Hanoi, Vietnam
Tel + 844 39 43 68 85

www.reports.airbus-group.com
The complete AIRBUS GROUP 2013 Annual Report package consists of:Annual Review 2013
“WE MAKE IT FLY”

Registration Document 2013
Financial Statements

AIRBUS GROUP would like to thank all those who contributed
to the making of this Annual Report.

Please also refer to the accompanying
AIRBUS GROUP Corporate Responsibility
and Sustainability Report 2013

Designed and produced by– Written by The Clerkenwell Consultancy – Printed by Chirat.

Annual review – Photographs © Airbus, © Airbus/ A. Doumenjou, © Airbus Group, © Airbus
Group/Bilfinger/Dannenberg © Airbus Group/CAPA pictures, © Airbus Group/Nicolas Gouhier,© Airbus Group/LCL Production – Sylvain Pascaud, © Airbus Group/Sven Marquardt,© Airbus Helicopters, © Ramon Jordi, © Airbus Defence and Space, © Airbus Defence andSpace/Astrium, Astrium SAS, © Airbus Defence and Space/Dannenberg, © Airbus Military,© Airbus China, © Airbus Group Inc., © Astrium, © EADS/C. Guibbaud 2010, © Christian
Böhme, © Robert Oram, © ESA, © ESA-CNES-ARIANESPACE/Optique Vidéo du CSG,
© Eurofighter GmbH/Andreas Zeitler, © Getty Images/themosse, Marc Volk, Westend61, X.
For Airbus Group Executive Committee and Airbus Group Board of Directors members’
portraits: © Airbus Group/Andreas Pohlmann.
All rights reserved.

www.airbus-group.com

European Aeronautic Defence
and Space Company EADS N.V.
Mendelweg 302333 CS Leiden
The Netherlands
Auriga Building
4, rue du Groupe d’Or - BP 90112
31703 Blagnac cedex - France