FINANCIAL
STATEMENTS
2013

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FINANCIAL STATEMENTS
2013

1
2

EADS N.V. — Consolidated
Financial Statements (IFRS)

5

Notes to the Consolidated
Financial Statements (IFRS)

13

3

EADS N.V. — Auditors’
report on the Consolidated
Financial Statements (IFRS) 111

4

Company Financial
Statements

115

Notes to the Company
Financial Statements

119

5

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EADS N.V. — Consolidated Financial
Statements (IFRS)EADS N.V. — Consolidated Income Statements (IFRS)
for the years ended 31 December 2013, 2012 and 2011

6

EADS N.V. — Consolidated Statements of Comprehensive
Income (IFRS) for the years ended 31 December 2013, 2012
and 2011

7

EADS N.V. — Consolidated Statements of Financial
Position (IFRS) at 31 December 2013 and 2012

8

EADS N.V. — Consolidated Statements of Cash Flows (IFRS)
for the years ended 31 December 2013, 2012 and 2011

9

EADS N.V. — Consolidated Statements of Changes in Equity(IFRS) for the years ended 31 December 2013, 2012 and 201110

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EADS N.V. — Consolidated Financial Statements (IFRS)EADS N.V. — Consolidated Income Statements (IFRS)
for the years ended 31 December 2013, 2012 and 2011(In € million)

Note

Revenues

5, 659,25656,48049,128

7(50,895)(48,582)(42,351)

Cost of sales(1)

2013

2012

2011

Gross margin(1)

8,361

7,898

6,777

Selling expenses(1,217)(1,192)(981)(1,696)(1,677)(1,433)(3,160)(3,142)(3,152)Administrative expenses(1)

Research and development expenses

8

Other income

9

236

184

359

Other expenses

10

(263)

(229)

(221)

Share of profit from associates accounted for under the equity method

11

295

241

164

Other income from investments

11

51

6

28

5

Profit before finance costs and income taxes

(1)

2,607

2,089

1,541

Interest income

168

237

377

Interest expense

(497)

(522)

(364)

Other financial result

(301)

(168)

(233)

12

(630)

(453)

(220)

13

(502)

(438)

(337)

1,475

1,198

984

1,465

1,197

980

10

1

4

Total finance costs
Income taxes(1)Profit for the period(1)

Attributable to:Equity owners of the parent (Net income)(1)Non-controlling interests

Earnings per share

€

€

€

Basic(1)

38

1.85

1.46

1.21

Diluted(1)

38

1.84

1.46

1.20

(1) Previous years’ figures adjusted due to revised IAS 19.

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).

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EADS N.V. — Consolidated Financial Statements (IFRS)

1EADS N.V. — Consolidated Statements of Comprehensive Income (IFRS)
for the years ended 31 December 2013, 2012 and 2011(In € million)

2013

2012

2011

Profit for the period

1,475

1,198

984

(72)

(987)

(677)

Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurement of the defined benefit liability (asset)(1)Remeasurement of the defined benefit liability (asset) from investments
using the equity method

4

(85)

1

Related tax on items that will not be reclassified to profit or loss(1)

20

335

148

Items that will be reclassified to profit or loss:
Foreign currency translation differences for foreign operations

(146)

(47)

(25)

Effective portion of changes in fair value of cash flow hedges

1,841

1,047

(365)

Net change in fair value of cash flow hedges transferred to profit or loss

450

917

(171)

Net change in fair value of available-for-sale financial assets

11

189

(20)

Net change in fair value of available-for-sale financial assets
transferred to profit or loss

(30)

0

0

Changes in other comprehensive income from investments accounted
for using the equity method

(7)

(126)

128

Related tax on income and expense recognised directly in equity

(711)

(625)

165

Other comprehensive income, net of tax

1,360

618

(816)

Total comprehensive income of the period

2,835

1,816

168

2,833

1,817

162

2

(1)

6

Attributable to:Equity owners of the parent(1)Non-controlling interests(1) Previous years’ figures adjusted due to revised IAS 19.

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).

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EADS N.V. — Consolidated Financial Statements (IFRS)EADS N.V. — Consolidated Statements of Financial Position (IFRS)
at 31 December 2013 and 2012(In € million)

AssetsNon-current assets
Intangible assets
Property, plant and equipment
Investment property
Investments in associates accounted for under the equity method
Other investments and other long-term financial assets
Non-current other financial assets
Non-current other assets
Deferred tax assets
Non-current securities
Current assets
Inventories
Trade receivables
Current portion of other long-term financial assets
Current other financial assets
Current other assets
Current tax assets
Current securities
Cash and cash equivalents

Note

2013

2012

14
15
16
17
17
20
21
13
22

13,65315,856
69
2,902
1,864
2,076
1,653
3,840
4,300

13,429(1)15,196
72
2,662
2,115
1,386
1,415
4,532(1)5,987

46,213

46,794(1)25,060
7,239
181
1,557
2,074
632
2,590
7,765

23,216
6,788(1)
287
1,448
2,046
458
2,328
8,756

18
19
17
20
21
22
31

Total assets
Equity and liabilities
Equity attributable to equity owners of the parent
Capital stock
Share premium
Retained earnings
Accumulated other comprehensive income
Treasury shares
Non-controlling interests

47,09845,327(1)93,311

92,121(1)

783
5,049
2,300
2,929
(50)

827
7,253
894(1)
1,513(84)

11,011

10,403(1)

43

17(1)

Total equity

23

11,054

10,420(1)Non-current liabilities
Non-current provisions
Long-term financing liabilities
Non-current other financial liabilities
Non-current other liabilities
Deferred tax liabilities
Non-current deferred income

25
26
27
28
13
30

10,046
3,956
7,158
10,7901,487
239

9,850(1)
3,506
7,458
10,524
1,502(1)212

33,67633,052(1)

5,323
1,645
10,372
1,467
28,159616
999

6,039(1)1,273
9,921(1)
1,715
28,183458
1,060(1)Current liabilities
Current provisions
Short-term financing liabilities
Trade liabilities
Current other financial liabilities
Current other liabilities
Current tax liabilities
Current deferred income

25
26
29
27
28
30

48,581

48,649(1)Total liabilities

82,257

81,701(1)Total equity and liabilities

93,311

92,121(1)(1) Previous year’s figures adjusted due to revised IAS 19 and due to PPA adjustments of prior year’s acquisitions (Please refer to “Notes to the Consolidated Financial Statements (IFRS) – Note 2a).

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).

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EADS N.V. — Consolidated Financial Statements (IFRS)

1EADS N.V. — Consolidated Statements of Cash Flows (IFRS)
for the years ended 31 December 2013, 2012 and 2011

Note

2013

2012

2011

1,465

1,197

980

10

1

4

Interest income

(168)

(237)

(377)

Interest expense

497

522

364

Interest received

119

198

417

Interest paid

(323)

(351)

(307)

(In € million)

Profit for the period attributable to equity owners of the parent (Net income)(1)

Profit for the period attributable to non-controlling interests
Adjustments to reconcile profit for the period to cash provided by operating activities:

Income tax expense(1)

502

438

337

Income taxes paid

(243)

(219)

(100)

Depreciation and amortisation

1,968

2,053

1,884

Valuation adjustments

16

318

(408)

Results on disposals of non-current assets

(58)

(21)

(29)

Results of companies accounted for by the equity method

(295)

(241)

(164)

Change in current and non-current provisions(1)

605

258

302

Change in other operating assets and liabilities:(2,164)

(76)

1,386

¬ Inventories(1,640)(3,151)(1,526)¬ Trade receivables

(58)

(260)

447

¬ Trade liabilities

584

754

806

¬ Advance payments received

513

1,243

1,965

¬ Other assets and liabilities

267

(141)

(327)

¬ Customer financing assets

(214)

30

246

¬ Customer financing liabilities

(105)

(176)

(111)

Cash provided by operating activities

1,931

3,840

4,289

(2,949)(3,270)(2,197)

60

73

79

Investments:¬ Purchases of intangible assets, Property, plant and equipment¬ Proceeds from disposals of intangible assets, Property, plant and equipment¬ Acquisitions of subsidiaries, joint ventures, businesses and non-controllinginterests (net of cash)

31

(16)

(201)

(1,535)¬ Proceeds from disposals of subsidiaries (net of cash)

31

0

0

18

¬ Payments for investments in associates, other investments and other long-term
financial assets

(292)

(328)

(312)

¬ Proceeds from disposals of associates, other investments and other long-term
financial assets

157

232

77

¬ Dividends paid by companies valued at equity

52

46

50

Payments for investments in securities(1,401)(3,237)(11,091)

Proceeds from disposals of securities

2,673

6,659

10,713(26)

00Cash (used for) investing activities(1,742)(26)(4,198)

Increase in financing liabilities

1,679

380

813

Repayment of financing liabilities

(534)

(505)

(399)
(178)

Change in cash from changes in consolidation

Cash distribution to EADS N.V. shareholders

(467)

(369)

Dividends paid to non-controlling interests

(2)

(10)

(5)

Changes in capital and non-controlling interests

171

144

(65)

Change in treasury shares(1,915)(5)(1)

Cash (used for) provided by financing activities(1,068)

(365)

165

Effect of foreign exchange rate changes and other valuation adjustments on cash
and cash equivalents

(112)

23

(2)

Net (decrease) increase in cash and cash equivalents

(991)

3,472

254

Cash and cash equivalents at beginning of period

8,756

5,284

5,030

Cash and cash equivalents at end of period

7,765

8,756

5,284

(1) Previous years’ figures adjusted due to revised IAS 19 and due to PPA adjustments of prior year’s acquisitions.

For details, see Note 31 “Consolidated Statements of Cash Flows”.
The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).

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EADS N.V. — Consolidated Financial Statements (IFRS)EADS N.V. — Consolidated Statements of Changes in Equity (IFRS)
for the years ended 31 December 2013, 2012 and 2011

Noncontrolling Total
interests equity

Equity attributable to equity holders of the parent
CapitalShare Retained
stock premium earnings(2)Balance at 31 December 2010

816

7,645

Prior year adjustments(1)

Total

46

384

(1,373)

1,435

(112)

8,841

(6)

Balance at 31 December 2010,
adjusted

816

7,645

Profit for the period(1)Other comprehensive income

TreasurysharesAvailableForeignfor-saleCashcurrency
financialflow translation
assets hedges adjustments

Note(In € million)

Accumulated othercomprehensive income

40

384

(1,373)

1,435

(112)

980
(1)

Total comprehensive incomeof the period
Capital increase23

Capital decrease

23

Share-based Payment (IFRS 2)

35

4

23

Balance at 31 December 2011

7,519

984

2

(816)

453

182

(399)

(74)

162

6

168

(1)

(7)
820

8,930

4

(818)

(45)

23

95

980
(74)

Change in non-controllinginterests

Cancellation of treasury shares

8,835

(399)

(178)

Change in treasury shares

(6)

182

59

Equity transaction (IAS 27)

8,936

(527)

15

Cash distribution to EADS N.V.
shareholders / dividends paid to
non-controlling interests

95

(6)

463

566

(1,773)

1,361

63

63

0

0

15

15

(178)

(5)

(183)

(46)

(79)

(125)

0

(2)

(2)

(8)

(8)

7

0

(113)

8,843

(8)
0
15

8,858

Profit for the period(1)

1,197

1,197

1

1,198

Other comprehensive income(1)

(738)

(3)

1,356

6

621

(2)

619

459

(3)

1,356

6

1,818

(1)

1,817

Total comprehensive incomeof the period
Capital increase23

Capital decrease

23

Share-based Payment (IFRS 2)

35

7

137

144

18

Cash distribution to EADS N.V.
shareholders / dividends paid to
non-controlling interests(369)

Equity transaction (IAS 27)(46)

Change in non-controllinginterests
Change in treasury shares

23

Cancellation of treasury shares

23

Balance at 31 December 2012

(34)
827

7,253

10 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

894

563

(417)

1,367

144

0

0

18

18

(369)

(10)

(379)

(46)

14

(32)

0

7

7

(5)

(5)

(5)

34

0

0

(84) 10,403

25 10,428

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EADS N.V. — Consolidated Financial Statements (IFRS)

1
Noncontrolling Total
interests equity

Equity attributable to equity holders of the parent
CapitalShare Retained
stock premium earnings(2)(In € million)

Treasuryshares

Total

AvailableForeignfor-saleCashcurrency
financialflow translation
assets hedges adjustments

Note

Balance at 31 December 2012

Accumulated othercomprehensive income

827

7,253

894

563

(417)

1,367

Prior year adjustments(1)(84) 10,403
0Balance at 31 December 2012,adjusted

827

7,253

Profit for the period

894

563

(417)

1,367

1,465

(84) 10,403

25 10,428(8)(8)

17 10,420

1,465

10

1,475

Other comprehensive income

(48)

31

1,541

(156)

1,368

(8)

1,360

Total comprehensive incomeof the period

1,417

31

1,541

(156)

2,833

2

2,835

233

242

2

244

(74)

(74)

(74)

107

107

Capital increase23

Capital decrease

23

Share-based Payment (IFRS 2)

35

9

107

Cash distribution to EADS N.V.
shareholders / dividends paid to
non-controlling interests(467)

Equity transaction (IAS 27)(118)

Change in non-controllinginterests

(2)

(469)

(118)

24

(94)

0

Change in treasury shares

23

Cancellation of treasury shares

23

Balance at
31 December 2013

(467)

(53)

(1,896)

783

5,049

2,300

594

1,124

1,211

0

0

0

34 (1,915)(1,915)(50) 11,011

43 11,054(1) Previous years’ figures adjusted due to revised IAS 19 and and due to PPA adjustments of prior year’s acquisitions.
(2) Due to revised IAS 19 retained earnings are now disclosed in aggregate including remeasurements of the net defined benefit liability and other retained earnings that could haveoffsetting effects.

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).

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Notes to the Consolidated Financial
Statements (IFRS)
2.1 Basis of Presentation

15

2.2 Notes to the Consolidated Income Statements

34

2.3 Notes to the Consolidated Statements of Financial Position

44

2.4 Notes to the Consolidated Statements of Cash Flows

68

2.5 Other Notes to the Consolidated Financial Statements

71

2.6 Appendix “Information on Principal Investments”— Consolidation Scope102

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Notes to the Consolidated Financial Statements (IFRS)Contents

2.1 Basis of Presentation

15

1.

The Company

152.

Summary of Signiﬁcant Accounting Policies

15

3.

Scope of Consolidation

30

4.

Acquisitions and Disposals

31

2.2 Notes to the Consolidated
Income Statements

34

5.

Segment Reporting

34

6.

Revenues and Gross Margin38

7.

Functional Costs

39

8.

Research and Development Expenses

39

9.

Other Income

39

10.

Other Expenses

40

11.

Share of Proﬁt from Associates Accounted
for under the Equity Method and Other Income
from Investments

40

12.

Total Finance Costs

13.

Income Taxes

22.

Securities

56

23.

Total Equity

56

24.

Capital Management

57

25.

Provisions

58

26.

Financing Liabilities

65

27.

Other Financial Liabilities

67

28.

Other Liabilities

67

29.

Trade Liabilities

68

30.

Deferred Income

68

2.4 Notes to the Consolidated
Statements of Cash Flows

68

31.

Consolidated Statements of Cash Flows

68

2.5 Other Notes to the Consolidated
Financial Statements

71

40

32.

Litigation and Claims

71

41

33.

Commitments and Contingencies

72

34.

Information about Financial Instruments

75

35.

Share-Based Payment

89

2.3 Notes to the Consolidated
Statements of Financial Position

44

36.

Related Party Transactions

97

37.

Interest in Joint Ventures

100

14.

Intangible Assets

44

38.

Earnings per Share

101

15.

Property, Plant and Equipment

48

39.

Number of Employees

101

16.

Investment Property

51

40.

Events after the Reporting Date

101

17.

Investments in Associates Accounted
for Under the Equity Method, Other Investments
and Other Long-Term Financial Assets

51

18.

Inventories

53

19.

Trade Receivables

54

2.6 Appendix “Information
on Principal Investments”— Consolidation Scope

20.

Other Financial Assets

55

21.

Other Assets

55

14 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

2.1 Basis of Presentation
1.

The Company

The accompanying Consolidated Financial Statements present
the ﬁnancial position and the result of the operations of European
Aeronautic Defence and Space Company EADS N.V. andits subsidiaries (“EADS” or the “Group”), a Dutch public limited
liability company (Naamloze Vennootschap) legally seated in
Amsterdam (current registered ofﬁce at Mendelweg 30, 2333 CS
Leiden, The Netherlands). On 2 January 2014, the Group has
been rebranded to Airbus Group as part of a wider reorganisation
including integration of the Group’s space and defence activities
with associated restructuring measures. The Group’s core2.

business is the manufacturing of commercial aircraft, civil andmilitary helicopters, commercial space launch vehicles, missiles,
military aircraft, satellites, defence systems and defence electronics
and rendering of services related to these activities. EADS has its
listings at the European Stock Exchanges in Paris, Frankfurt am
Main, Madrid, Barcelona, Valencia and Bilbao. The Consolidated
Financial Statements were authorised for issue by the Group’s
Board of Directors on 25 February 2014. They are preparedand reported in euro (“€”), and all values are rounded to thenearest million appropriately.

Summary of Signiﬁcant Accounting Policies

Basis of preparation — The Group’s Consolidated Financial
Statements are prepared in accordance with International
Financial Reporting Standards (“IFRS”), issued by the International
Accounting Standards Board (“IASB”) as endorsed by the European
Union (“EU”) and with Part 9 of Book 2 of the Netherlands Civil
Code. The Consolidated Financial Statements have been preparedon a historical cost basis, except for certain items such as:(i) derivative financial instruments, which are measured at fairvalue;(ii) financial assets designated at fair value through profit or loss(“Fair Value Option”, see Note 34 “Information about financial
instruments”) and available-for-sale financial assets, which aremeasured at fair value;

The measurement models used when historical cost does not
apply are further described below.
In accordance with Article 402 Book 2 of the Netherlands Civil
Code the Statement of Income of the EADS N.V. company
financial statements is presented in abbreviated form.
The preparation of ﬁnancial statements in conformity withIFRS requires the use of certain critical accounting estimates. It
also requires management to exercise its judgement in the processof applying the Group’s accounting policies. The areas involving
a higher degree of judgement or complexity, or areas whereassumptions and estimates are signiﬁcant to the Consolidated
Financial Statements are disclosed in the last subsection “Use of
Accounting Estimates” of this Note 2.

(iii) contingent consideration classified as a financial liability, suchas certain earn-out liabilities, which are measured at fair value;

New, revised or amended IFRS Standards
and new Interpretations(iv) put options on non-controlling interests classified as financial
liabilities, which are measured at the present value of theredemption amount;

The IFRS accounting principles applied by the Group for preparing
its 2013 year-end Consolidated Financial Statements are the same
as for the previous ﬁnancial year except for those following theapplication of new or amended Standards or Interpretations
respectively as detailed below.

(v) assets and liabilities designated as hedged items in fair value
hedges, which are either measured at fair value or at amortised
cost adjusted for changes in fair value attributable to the risks
that are being hedged;(vi) share-based payment arrangements, which are measured
using the fair-value based measure of IFRS 2; and(vii) defined benefit obligations (or assets), which are measured
according to IAS 19, and related plan assets, which aremeasured at fair value.

a) New or Amended Standard
The application of the following amendments to IFRS is mandatory
for the Group for the ﬁscal year starting 1 January 2013. If nototherwise stated, the following amendments did not have a material
impact on the Group’s Consolidated Financial Statements as wellas its basic and diluted earnings per share.
In December 2010, the IASB issued amendments to IAS 12“Income Taxes” providing practical guidance for the measurementof deferred tax relating to an asset by introducing the presumptionthat recovery of the carrying amount of that asset will normally be

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

through sale. Respective amendments supersede SIC 21 “Income
Taxes – Recovery of Revalued Non Depreciable Assets”. The
amendments were endorsed in December 2012 and are applicablefor annual periods beginning 1 January 2013.
In June 2011, the IASB issued an amended version of IAS 19“Employee Beneﬁ ts” (endorsed June 2012). The amendment
eliminates both the option of deferred recognition of actuarial
gains and losses (known as the “corridor method”) and the optionof immediately recognising them in proﬁ t or loss, to improvecomparability of ﬁnancial statements. Under the amendment, fullrecognition of actuarial gains and losses directly in equity becomesmandatory. The Group already applied this method of accounting
for actuarial gains and losses. Furthermore, the revised standard
introduces a net interest approach, under which for deﬁned beneﬁt
obligation and plan assets the same interest rate is applied, and it
requires past service costs to be fully recognised in the period of
the related plan amendment. The amended standard also changes
the requirements for termination beneﬁts and includes enhanced
presentation and disclosure requirements. For the Group, thestandard becomes applicable for annual periods beginning on
1 January 2013. It requires retrospective application.
The introduction of a single net interest component, i.e. the interest
expense (income) resulting from multiplying the net deﬁned beneﬁt
liability (asset) by the discount rate used to determine the deﬁned
beneﬁ t obligation (“DBO”), impacts the Group’s Consolidated
Financial Statements as there are no longer different rates
applicable for plan assets and DBOs. In addition, retrospectively
applying the requirement to recognise past service cost fully in the
period of the plan amendment requires recognition of unamortised
past service cost at the date of transition. Finally, the amended
guidance on termination beneﬁts henceforth requires the Groupto recognise the additional compensation payable under certain
German early retirement programmes (Altersteilzeitprogramme)
rateably over the active service period of such programmes (asopposed to recognising the additional compensation at its present
value at programme inception).
Applying the amended standard retrospectively in 2013, theGroup’s consolidated opening net equity (retained earnings) asof 1 January 2011 has been adjusted by €-6 million. Comparative
consolidated statement of income for 2012 (and 2011) has
been restated leading to an impact in Cost of sales for 2012 of€-37 million (for 2011 of €-66 million) and in Administrative expensesof €-5 million (for 2011 of €-6 million). Proﬁt for the period wasaffected for 2012 by €-31 million (for 2011 by €-53 million). The
impact on earnings per share for 2012 amounts to €-0.04 on basic
and diluted earnings per share (for 2011 €-0.06 on basic and€-0.07 on diluted earnings per share). If the Group had not applied
IAS 19R beginning 1 January 2013, its proﬁt before ﬁnance costs
and income taxes would have increased by around €+75 million,
while basic and diluted earnings per share would have had apositive impact of approximately €+0.08 in 2013.
Regarding past service costs, the initial application of therevised standard in 2013 has no signiﬁcant effect on the Group’s
Consolidated Net income. The retrospective adjustments in the

16 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

opening balance sheet as of 1 January 2011 result in an increaseof pension liabilities of € 45 million and a decrease of retained
earnings of € 29 million.
Regarding German early retirement programmes, the initial
application of the revised standard has no signiﬁcant effect on theGroup’s Consolidated Net income. The retrospective adjustmentsin the opening balance sheet as of 1 January 2011 result in adecrease of provisions of € 34 million and an increase of retained
earnings of € 23 million.
Amendments to IAS 1 “Presentation of Items of Other
Comprehensive Income”, which were issued in June 2011, require
separate presentation of items of other comprehensive incomethat are reclassiﬁed subsequently to proﬁt or loss (recyclable) andthose that are not reclassiﬁed to proﬁt or loss (non-recyclable).
The amended standard became effective for ﬁnancial periods
beginning on or after 1 July 2012. The amendments were endorsed
in June 2012.
In May 2011, the IASB issued IFRS 13 “Fair Value Measurement”(endorsed in December 2012). IFRS 13 deﬁnes fair value, sets out
in a single IFRS a framework for measuring fair value and requires
disclosures about fair value measurements.
IFRS 13 seeks to reduce complexity and improve consistency
in the application of fair value measurement principles. The
new standard deﬁnes fair value as an exit price, i.e. as the pricethat would be received to sell an asset or paid to transfer aliability in an orderly transaction between market participants at
measurement date. It further establishes a three level fair value
hierarchy regarding the inputs used for fair value determination.
IFRS 13 has been applied prospectively from 1 January 2013. The
Group did not make a signiﬁcant revision of its valuation methods
that are deemed consistent with IFRS 13 guidance; credit anddebit value adjustments had been incorporated in the valuation ofderivative ﬁnancial instruments prior to the application of IFRS 13.
Accordingly, the initial application of IFRS 13 did not have a material
impact on the Group’s Consolidated Financial Statements.
In December 2011, the IASB issued amendments to IFRS 7“Financial Instruments: Disclosures” (endorsed in December 2012)
expanding disclosure requirements for ﬁnancial assets and liabilities
that are set off in the statement of ﬁnancial position or subject tonetting agreements. The Group provides the disclosure requiredby the amendments retrospectively for all periods presented.
The IASB issued various amendments to IFRS Standards within
the Annual Improvements 2009-2011 Cycle, which have become
applicable as of 1 January 2013. The amendments refer to IFRS 1,
IAS 1, IAS 16, IAS 32 and IAS 34.

b) New or Amended Interpretations
There are no new or amended interpretations applicable to theGroup which became effective for the ﬁnancial period beginning
after 31 December 2012.

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

New, revised or amended IFRS Standards
and Interpretations issued but not yet applied
A number of new or revised standards, amendments andimprovements to standards as well as interpretations are not yet
effective for the year ended 31 December 2013 and have not been
applied in preparing these Consolidated Financial Statements.
The potential impacts from the application of those newly issued
standards, amendments and interpretations are currently underinvestigation. In general and if not otherwise stated, these new,revised or amended IFRS and their interpretations are not expected
to have a material impact on the Group’s Consolidated Financial
Statements as well as its basic and diluted earnings per share.
In November 2009, the IASB issued IFRS 9 “Financial Instruments(2009)” (not yet endorsed) as the ﬁrst step of its project to replace
IAS 39 “Financial Instruments: Recognition and Measurement”.
Amongst other changes to the accounting for ﬁnancial instruments,
IFRS 9 replaces the multiple classiﬁ cation and measurement
models for ﬁnancial assets and liabilities in IAS 39 with a simpliﬁed
model that is based on only two classiﬁcation categories: amortised
cost and fair value. Further, the classiﬁcation of ﬁnancial assets
under IFRS 9 is driven by the entity’s business model for managing
its ﬁnancial assets and the contractual cash ﬂow characteristicsof these ﬁ nancial assets. However, in response to feedback
received from interested parties, the IASB reconsidered the IFRS 9
classiﬁcation model and issued in November 2012 an Exposure
Draft which proposes limited amendments to IFRS 9 to introduce,
amongst others, a fair value through other comprehensive income(OCI) measurement category as a third classiﬁcation category forparticular ﬁnancial assets that are held within a business modelin which assets are managed both for collecting contractual cash
ﬂows and for sale. In October 2010 the IASB added to IFRS 9 therequirements for the classiﬁcation and measurement of ﬁnancial
liabilities (not yet endorsed). The amendment carried forward
unchanged most of the requirements in IAS 39 for classifying
and measuring financial liabilities, but changed the IAS 39
requirements for accounting for own credit risk to the effect thatchanges in the credit risk of a ﬁnancial liability carried at fair value
will not affect proﬁt or loss unless the liability is held for trading.
In November 2013, the IASB added to IFRS 9 amendments related
to hedge accounting (not yet endorsed). The amendments replace
the hedge accounting requirements of IAS 39 and establish acomprehensively reviewed and more principle-based approach tohedge accounting that aligns hedge accounting more closely withrisk management. In addition the amendments removed 1 January
2015 as the mandatory effective date of IFRS 9 and clarify that the
mandatory effective date will be determined when the outstanding
phases of the IAS 39 replacement project, principally dealing with
impairment issues, are ﬁnalised. In light of the 2013 changes, andthose still to come, the Group continues to assess the potential
impacts from the expected application of IFRS 9.
In May 2011, the IASB published its improvements to the accounting
and disclosure requirements for consolidation, off balance sheet
activities and joint arrangements by issuing IFRS 10 “Consolidated
Financial Statements”, IFRS 11 “Joint Arrangements”, IFRS 12“Disclosure of Interests in Other Entities” and consequential
amendments to IAS 27 “Separate Financial Statements” andIAS 28 “Investments in Associates and Joint Ventures”. IFRS 10
supersedes the requirements related to Consolidated Financial
Statements in IAS 27 “Consolidated and Separate Financial
Statements” (amended 2008) as well as SIC 12 “Consolidation –Special Purpose Entities”. IFRS 11 supersedes IAS 31 “Interests
in Joint Ventures” (amended 2008) and SIC 13 “Jointly Controlled
Entities – Non-Monetary Contributions by Venturers”. IFRS 12
replaces disclosure requirements in IAS 27, IAS 28 and IAS 31.
All of the new or amended standards mentioned above have beenendorsed in December 2012. IFRS 10 deﬁ nes the principle ofcontrol and establishes control as the sole basis for determining
which entity should be consolidated in the Consolidated Financial
Statements: An investor controls an investee when it is exposed,or has rights, to variable returns from its involvement with theinvestee and has the ability to affect those returns through its
power over the investee. The standard provides additional
guidance to determine control in cases difﬁcult to assess suchas in situations where an investor holds less than a majority ofvoting rights, but has the practical ability to direct the relevant
activities of the investee unilaterally by other means as well as incases of agency relationships which were neither addressed by
IAS 27 nor by SIC 12.
IFRS 11 provides guidance for the accounting of joint arrangements
by focusing on the rights and obligations arising from thearrangement. The standard distinguishes between two types ofjoint arrangements: joint operations and joint ventures. A joint
operation is a joint arrangement whereby the parties that havejoint control of the arrangement (i.e. joint operators) have rights
to the assets, and obligations for the liabilities, relating to thearrangement. A joint venture is a joint arrangement whereby theparties that have joint control of the arrangement (i.e. joint venturers)
have rights to the net assets of the arrangement. IFRS 11 requires
a joint operator to recognise and measure the assets and liabilities(and recognise the related revenues and expenses) in relation toits interest in the arrangement applicable to the particular assets,
liabilities, revenues and expenses. A joint venturer is required torecognise an investment and to account for this investment using
the equity method. The proportionate consolidation method may
no longer be used for joint ventures.
IFRS 12 provides disclosure requirements for all forms of interests
in other entities, including subsidiaries, joint arrangements,
associates, structured entities (formerly referred to as “special
purpose entities”) and off-balance sheet vehicles in one single
standard. The standard requires an entity to disclose informationthat enables users of ﬁnancial statements to evaluate the natureof, and risks associated with, its interests in other entities andthe effects of those interests on its ﬁnancial position, ﬁnancial
performance and cash ﬂows.
In June 2012, the IASB issued the Transition Guidance(Amendments for IFRS 10, IFRS 11 and IFRS 12), which wasendorsed in April 2013 and provides transition relief in IFRS 10,
IFRS 11 and IFRS 12 by limiting the number of periods for which
adjusted comparative information is to be disclosed.

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 17

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

IFRS preparers in the EU have to apply IFRS 10 to 12 andamendments to IAS 27 and IAS 28 for ﬁnancial periods beginningon or after 1 January 2014 with early application allowed. The
abandonment of the proportionate consolidation method forjoint ventures will have a considerable impact on the Group’s
Consolidated Financial Statements as the Group has opted toapply this method for the consolidation of its joint ventures under
IAS 31. For further information about principle joint ventures
accounted for under the proportionate consolidation method,
please refer to Note 37 “Interest in Joint Ventures”.
Based on preliminary assessment, retrospective application of theequity method for joint ventures would have reduced the Group’s
2013 consolidated proﬁt before ﬁnance cost and income tax byapproximately € 32 million, the Group’s revenue by approximately€ 1,703 million and the Group’s cash and cash equivalents byapproximately € 495 million. The impact on these ﬁnancial ﬁguresin 2014 cannot be reasonably estimated. The retrospective
adjustments in the opening balance sheet as of 1 January 2012
will result in a decrease of retained earnings of € 148 million.
Impact from the ﬁrst time application of IFRS 10 is still under ﬁnal
assessment but no material impact on the presentation of theGroup’s ﬁnancial statements is expected.
In December 2011, the IASB issued amendments to IAS 32“Financial Instruments: Presentation” clarifying the IASB’s
requirements for offsetting financial instruments (endorsed
in December 2012). The amendments will have to be applied
retrospectively for annual periods beginning on 1 January 2014.
In May 2013, the IASB issued IFRIC 21 “Levies” (not yet endorsed).
IFRIC 21 covers the recognition and measurement of levies.
IFRIC 21 is effective from 1 January 2014.
On 27 June 2013 the IASB issued amendments to IAS 39“Novation of Derivatives and Continuation of Hedge Accounting”(endorsed in December 2013). Under the amendments there would
be no need to discontinue hedge accounting if a hedging derivative
was novated, provided certain criteria are met. The amendments
are effective for annual periods beginning on or after 1 January
2014.
In November 2013, the IASB issued amendments to IAS 19“Employee Contributions” (not yet endorsed). The amendments
clarify which employee (or third party) contributions may be
accounted for as a reduction of the service cost in the period
in which the related service is rendered rather than as negative
beneﬁts attributed to periods of service under the plan’s beneﬁt
formula or on a straight-line basis. The amendments will have tobe applied for annual periods beginning on or after 1 July 2014.
In December 2013, the IASB issued various amendments to
IFRS Standards within the Annual Improvements 2010-2012
Cycle and the Annual Improvements 2011-2013 Cycle (both not
yet endorsed). The amendments of the Annual Improvements
2010-2012 Cycle refer to IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16,
IAS 24 and IAS 38. The amendments of the Annual Improvements
2011-2013 Cycle refer to IFRS 1, IFRS 3, IFRS 13 and IAS 40. All
amendments are effective for annual periods beginning on or after
1 July 2014 with early application allowed.

18 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

Amended IFRS Standards issued and early
adoptedIn May 2013, the IASB issued amendments to IAS 36 “Recoverable
Amount Disclosures for Non-Financial Assets” (endorsed
in December 2013). The amendments to IAS 36 modify disclosure
requirements in IAS 36 “Impairment of Assets” regarding
measurement of the recoverable amount of impaired assets. The
amendments to IAS 36 are applicable for periods beginning on
or after 1 January 2014 with early adoption permitted. The Grouphas opted to early adopt the amendments to IAS 36 for 2013
annual period.

Signiﬁcant Accounting Policies
The principal accounting policies applied in the preparation ofthese Consolidated Financial Statements are set out below.
These policies have been consistently applied to all ﬁnancial years
presented, unless otherwise stated.
Consolidation — The Consolidated Financial Statements include
the subsidiaries of the Group. Subsidiaries are all entities controlled
by the Group, i.e. over which it has the power to govern ﬁnancial
and operating policies. An entity is presumed to be controlled by
the Group when EADS owns more than 50% of the voting powerof the entity which is generally accompanied with a respective
shareholding. Potential voting rights currently exercisable orconvertible are also considered when assessing control over anentity.
Special purpose entities (“SPEs”) are consolidated as any
subsidiary, when the relationship between the Group and the SPE
indicates that the SPE is in substance controlled by the Group.
SPEs are entities which are created to accomplish a narrow
and well-deﬁned objective. Subsidiaries are fully consolidated
from the date control has been transferred to the Group and deconsolidated from the date control ceases.
Business Combinations — Business combinations are accounted
for under the acquisition method of accounting as at the acquisitiondate, which is the date on which control is transferred to the Group.
Goodwill is measured at the acquisition date as:¬ the fair value of the consideration transferred; plus
¬ the recognised amount of any non-controlling interests in theacquiree; plus
¬ if the business combination is achieved in stages, the fair valueof the existing equity interest in the acquiree; less¬ the net recognised amount (generally fair value) of the identiﬁable
assets acquired and liabilities assumed.
Before recognising a gain on a bargain purchase in the Consolidated
Income Statement, a reassessment is made of whether all of
the assets acquired and all of the liabilities assumed have beencorrectly identiﬁed, and a review is undertaken of the procedures
used to measure (a) the identiﬁable assets and liabilities, (b) any
non-controlling interest, (c) the consideration transferred and (d) fora business combination achieved in stages, the Group’s previously
held equity interest in the acquiree.

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

Any non-controlling interest will be measured at either fair value (fullgoodwill method), or at its proportionate interest in the identiﬁable
assets and liabilities of the acquiree (partial goodwill method), on
a transaction-by-transaction basis.
The consideration transferred does not include amounts related
to the settlement of pre-existing relationships. Such amounts
are recognised separately in proﬁt or loss. Costs related to theacquisition, other than those associated with the issue of debt
or equity securities, that the Group incurs in connection with abusiness combination are expensed as incurred.

include goodwill as recognised at the acquisition date net of any
accumulated impairment loss. The investments’ carrying amount isadjusted by the cumulative movements in recognised income andexpense. When the Group’s share in losses equals or exceeds its
interest in an associate, including any other unsecured receivables,
no further losses are recognised, unless the Group has incurred
obligations or made payments on behalf of the associate.
Total comprehensive income is attributed to the owners of theparent and to the non-controlling interest, even if this results inthe non-controlling interests having a deﬁcit balance.

Any contingent consideration payable is recognised at fair value
at the acquisition date. If the contingent consideration is classiﬁed
as equity, it is not remeasured and settlement is accounted forwithin equity. Otherwise, subsequent changes to the fair valueof the contingent consideration are recognised in proﬁt or loss.

The ﬁnancial statements of the Group’s investments in associates
and joint ventures are generally prepared for the same reporting
period as for the parent company. Adjustments are made where
necessary to bring the accounting policies and accounting periods
in line with those of the Group.

When share-based payment awards (replacement awards) are
required to be exchanged for awards held by the acquiree’s
employees (acquiree’s awards) and relate to past services, then all
or a portion of the amount of the acquirer’s replacement awards isincluded in measuring the consideration transferred in the businesscombination. This determination is based on the market-basedvalue of the replacement awards compared with the marketbased value of the acquiree’s awards and the extent to which thereplacement awards relate to past and/or future service.

Foreign currency translation — The Consolidated Financial
Statements are presented in euro. The assets and liabilities offoreign entities, whose functional currency is other than euro, aretranslated using period-end exchange rates, whilst the statements
of income are translated using average exchange rates during theperiod, approximating the foreign exchange rate at the dates of thetransactions. All resulting translation differences are recognised
as a separate component of total equity (“Accumulated othercomprehensive income” or “AOCI”). If a foreign subsidiary is a
not wholly owned, then the relevant proportionate share of thetranslation difference is allocated to the non-controlling interests.

Acquisitions and disposals of non-controlling interests areaccounted for as transactions with owners in their capacity as
equity owners of the Group and therefore no goodwill or gain / loss
is recognised as a result of such transactions. The adjustments
to non-controlling interests are based on a proportionate amountof the net assets of the subsidiary.
Goodwill is tested for impairment in the fourth quarter of eachﬁnancial year and whenever there is an indication for impairment.
After initial recognition goodwill is measured at cost lessaccumulated impairment losses. For impairment testing purpose,
goodwill is allocated to those Cash Generating Units (“CGUs”) orgroup of CGUs – at EADS on segment level or one level below –that are expected to beneﬁt from the synergies arising from thebusiness combination.
The Group’s subsidiaries prepare their ﬁnancial statements atthe same reporting date as the Group’s Consolidated Financial
Statements and apply the same accounting policies for similartransactions.
Investment in associates and jointly controlled entities — For
investments the Group jointly controls (“joint ventures”) with one ormore other parties (“venturers”), the Group recognises its interestby using the proportionate method of consolidation. Joint control
is contractually established and requires unanimous decisions
regarding the ﬁnancial and operating strategy of an entity.
Investments in which the Group has significant influence(“investments in associates”) are accounted for using the equity
method and are initially recognised at cost. Signiﬁcant inﬂuencein an entity is presumed to exist when the Group owns 20% to
50% of the entity’s voting rights. The investments in associates

Transactions in foreign currencies are translated into euro at theforeign exchange rate prevailing at transaction date. Monetary
assets and liabilities denominated in foreign currencies at the endof the reporting period are translated into euro at the exchange
rate in effect at that date. These foreign exchange gains and losses
arising from translation are recognised in the Consolidated Income
Statement except when deferred in equity as qualifying cash ﬂow
hedges.
Non-monetary assets and liabilities denominated in foreign
currencies that are stated at historical cost are translated into euroat the foreign exchange rate in effect at the date of the transaction.
Translation differences on non-monetary ﬁ nancial assets andliabilities that are measured at fair value are reported as part of
the fair value gain or loss. However, translation differences of nonmonetary ﬁnancial assets measured at fair value and classiﬁed asavailable for sale are included in AOCI.
When a foreign operation is disposed of such that control, signiﬁcant
inﬂuence or joint control is lost, the cumulative amount in thetranslation reserve related to that foreign operation is reclassiﬁed to
proﬁt or loss as part of the gain or loss on disposal. When the Group
disposes of only part of its interest in a subsidiary that includes aforeign operation while retaining control, the relevant proportion of
the cumulative translation reserve is allocated to non-controllinginterests. When the Group disposes of only part of its investment
in an associate or joint venture that includes a foreign operation
while retaining signiﬁcant inﬂuence or joint control, the relevant
proportion of the cumulative translation reserve is reclassiﬁed to
proﬁt or loss.

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 19

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

Current and non-current assets and liabilities — The
classiﬁcation of an asset or liability as current or non-current ingeneral depends on whether the item is related to serial production
or subject to long-term production. In the serial production
business, an asset or liability is classiﬁed as current when theitem is realised or settled within 12 months after the reporting
period, and as non-current otherwise. In the construction contract
business, an asset or liability is classiﬁed as current when the item
is realised or settled within the Group’s normal operating cycle forsuch contracts, and as non-current otherwise. As a result, assets
and liabilities relating to the construction contract business, suchas inventories, trade receivables and payables and receivablesfrom PoC, that are sold, consumed or settled as part of the normal
operating cycle are classiﬁed as current even when they are notexpected to be realised within 12 months after the reporting period.
Revenue recognition — Revenue is recognised to the extent that
it is probable that the economic beneﬁt arising from the ordinary
activities of the Group will ﬂow to EADS, that revenue can bemeasured reliably and that the recognition criteria, as statedbelow for each type of revenue-generating activity, have been
met. Revenue is measured at the fair value of the consideration
received or receivable after deducting any discounts, rebates,
liquidated damages and value added tax. For the preparation of
the Consolidated Income Statement intercompany revenues are
eliminated.
Revenues from the sale of goods are recognised upon the transfer
of risks and rewards of ownership to the buyer which is generally
on delivery of the goods.
Revenues from services rendered are recognised in proportion
to the stage of completion of the transaction at the end of thereporting period.
When the Group entities provide more than one element ofrevenue (goods and/or services), the consideration received isallocated by reference to the relative fair values of the separate
elements of revenue when the amounts are separately identiﬁable.
For construction contracts, when the outcome can be estimatedreliably, revenues are recognised by reference to the percentage ofcompletion (“PoC”) of the contract activity by applying the estimate
at completion method. Depending on the nature of the contract, thepercentage of completion is determined, and revenue recognised,
as contractually agreed technical milestones are reached, as units
are delivered or as the work progresses. Whenever the outcome ofa construction contract cannot be estimated reliably – for example
during the early stages of a contract or when this outcome canno longer be estimated reliably during the course of a contract’s
completion – all related contract costs that are incurred are
immediately expensed and revenues are recognised only to theextent of those costs being recoverable (“early stage method of
accounting”). Once the outcome of such contracts can (again) be
estimated reliably, revenue is accounted for according to the PoC
method henceforward, without restating the revenues previously
recorded under the early stage method of accounting. Changes in
proﬁt rates are reﬂected in current earnings as identiﬁed. Contracts
are reviewed regularly and in case of probable losses, loss-at-

20 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

completion provisions are recorded. For construction contracts
such loss-at-completion provisions are not discounted.
Sales of aircraft that include asset value guarantee commitments
are accounted for as operating leases when these commitments
are considered substantial compared to the fair value of therelated aircraft. Revenues then comprise lease income from suchoperating leases.
Revenue related to construction or upgrade services under aservice concession arrangement is recognised based on thestage of completion of the work performed, consistent with theGroup’s accounting policy on recognising revenue on construction
contracts.
Interest income is recognised as interest accrues, using theeffective interest rate method.
Dividend income / distributions — Dividend income as well as
the obligation to distribute dividends to the Group’s shareholders
is recognised when the shareholders’ right to receive payment isestablished.
Leasing — The determination of whether an arrangement is orcontains a lease is based on the substance of the arrangement
and requires an assessment of (i) whether the fulﬁlment of thearrangement is dependent on the use of a speciﬁc asset or assets,and (ii) the arrangement conveys a right to use the asset(s).
The Group is a lessor and a lessee of assets, primarily in connection
with commercial aircraft sales ﬁ nancing. Lease transactions
where substantially all risks and rewards incident to ownership
are transferred from the lessor to the lessee are accounted for
as ﬁnance leases. All other leases are accounted for as operatingleases.
Assets leased out under operating leases are included in property,
plant and equipment at cost less accumulated depreciation (seeNote 15 “Property, plant and equipment”). Rental income fromoperating leases (e.g. aircraft) is recorded as revenue on a straightline basis over the term of the lease. Assets leased out under ﬁnanceleases cease to be recognised in the Consolidated Statementof Financial Position after the inception of the lease. Instead, aﬁnance lease receivable representing the discounted future lease
payments to be received from the lessee plus any discounted
unguaranteed residual value is recorded as part of other long-term
ﬁnancial assets (see Note 17 “Investments in associates accounted
for under the equity method, other investments and other long-term
ﬁnancial assets”). Unearned ﬁnance income is recorded over timein “Interest income”. Revenues and the related cost of sales arerecognised at the inception of the ﬁnance lease.
Assets obtained under ﬁnance leases are included in property,
plant and equipment at cost less accumulated depreciation andimpairment if any (see Note 15 “Property, plant and equipment”),
and give rise to an associated liability from ﬁnance leases. If such
assets are further leased out to customers, they are classiﬁed
either as an operating lease or as a finance lease, with theGroup being the lessor (headlease-sublease transactions), andaccounted for accordingly. When the Group is the lessee underan operating lease contract, rental payments are recognised on a

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

straight line basis over the lease term (see Note 33 “Commitments
and contingencies” for future operating lease commitments). An
operating lease may also serve as a headlease in a headleasesublease transaction. If so, the related sublease is an operatinglease as well. Headlease-sublease transactions typically form partof commercial aircraft customer ﬁnancing transactions.
Product-related expenses — Expenses for advertising, sales
promotion and other sales-related expenses are charged to
expense as incurred. Provisions for estimated warranty costs arerecorded at the time the related sale is recorded.
Research and development expenses — Research anddevelopment activities can be (i) contracted or (ii) self-initiated.
(i) Costs for contracted research and development activities,
carried out in the scope of externally financed research anddevelopment contracts, are expensed when the related
revenues are recorded.
(ii) Costs for self-initiated research and development activities
are assessed whether they qualify for recognition as internallygenerated intangible assets. An intangible asset may only berecognised if technical as well as commercial feasibility canbe demonstrated and cost can be measured reliably. It mustalso be probable that the intangible asset will generate future
economic benefits and that it is clearly identifiable and allocable
to a specific product.
Further to meeting these criteria, only such costs that relate solely
to the development phase of a self-initiated project are capitalised.
Any costs that are classiﬁed as part of the research phase of a selfinitiated project are expensed as incurred. If the research phasecannot be clearly distinguished from the development phase, therespective project related costs are treated as if they were incurredin the research phase only.
Capitalised development costs are generally amortised overthe estimated number of units produced. In case the numberof units produced cannot be estimated reliably capitalised
development cost are amortised over the estimated useful life of theinternally generated intangible asset. Amortisation of capitalised
development costs is recognised in cost of sales. Internallygenerated intangible assets are reviewed for impairment annuallywhen the asset is not yet in use and further on whenever eventsor changes in circumstances indicate that the carrying amount
may not be recoverable.
Income tax credits granted for research and development activities
are deducted from corresponding expenses or from capitalisedamounts when earned.
Borrowing costs — Borrowing costs directly attributable to theacquisition, construction or production of an asset that necessarily
takes a substantial period of time (generally more than 12 months)
to get ready for its intended use or sale are capitalised as part ofthe cost of the respective assets. All other borrowing costs are
expensed in the period they occur. Borrowing costs consist ofinterest and other costs that the Group incurs in connection withthe borrowing of funds. The Group capitalises borrowing costs
for qualifying assets where construction was commenced on orafter 1 January 2009. Further, the Group continues to expenseborrowing costs relating to construction projects that commenced
prior to 1 January 2009.
Intangible assets — Intangible assets comprise (i) internallygenerated intangible assets, i.e. internally developed software andother internally generated intangible assets (see above: “Researchand development expenses”), (ii) acquired intangible assets, and(iii) goodwill (see above: “Consolidation”).
Separately acquired intangible assets are initially recognised
at cost. Intangible assets acquired in a business combination
are recognised at their fair value at acquisition date. Acquired
intangible assets with ﬁnite useful lives are generally amortised ona straight line basis over their respective estimated useful lives (3to 10 years) to their estimated residual values. The amortisation
expense on intangible assets with ﬁnite lives is recognised in theConsolidated Income Statement within the expense category
consistent with the function of the related intangible asset. The
amortisation method and the estimate of the useful lives of theseparately acquired intangible asset is reviewed at least annuallyand changed if appropriate.
Intangible assets having an indeﬁnite useful life are not amortised
but tested for impairment at the end of each ﬁnancial year aswell as whenever there is an indication that the carrying amountexceeds the recoverable amount of the respective asset (see below“Impairment of non-ﬁnancial assets”). For such intangible assets
the assessment for the indeﬁnite useful life is reviewed annually on
whether it remains supportable. A change from indeﬁnite to ﬁnite
useful life assessment is accounted for as change in estimate.
Gains or losses arising from the derecognition of an intangible asset
are measured as the difference between the net disposal proceeds
and the carrying amount of the asset and are recognised in theConsolidated Income Statement when the asset is derecognised.
Property, plant and equipment — Property, plant and equipment
is valued at acquisition or manufacturing costs less accumulated
depreciation and impairment losses. Such costs include theestimated cost of replacing, servicing and restoring part of suchproperty, plant and equipment. Items of property, plant andequipment are generally depreciated on a straight-line basis.
The costs of internally produced equipment and facilities include
direct material and labour costs and applicable manufacturing
overheads, including depreciation charges. The following useful
lives are assumed: buildings 10 to 50 years; site improvements 6
to 30 years; technical equipment and machinery 3 to 20 years; andother equipment, factory and ofﬁce equipment 2 to 10 years. The
useful lives, depreciation methods and residual values applying
to property, plant and equipment are reviewed at least annuallyand in case they change signiﬁcantly, depreciation charges for
current and future periods are adjusted accordingly. If the carrying
amount of an asset exceeds its recoverable amount an impairment
loss is recognised immediately in proﬁt or loss. At each end of thereporting period, it is assessed whether there is any indication thatan item of property, plant and equipment may be impaired (seealso below “Impairment of non-ﬁnancial assets”).

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

When a major inspection is performed, its cost is recognised in the
carrying amount of the plant and/or equipment as a replacement
if the recognition criteria are satisﬁed. The carrying amount of thereplaced part is derecognised. All other repairs and maintenanceare recognised as an expense in the Consolidated Income
Statement of the period in which they are incurred. Cost of an
item of property, plant and equipment initially recognised comprisethe initial estimate of costs of dismantling and removing the item
and restoring the site on which it is located at the end of the usefullife of the item on a present value basis. A provision presenting theasset retirement obligation is recognised in the same amount at
the same date in accordance with IAS 37 “Provisions, Contingent
Liabilities and Contingent Assets”.
Property, plant and equipment also includes capitalised
development costs for tangible developments of specialised toolingfor production such as jigs and tools, design, construction andtesting of prototypes and models. In case recognition criteria aremet, these costs are capitalised and generally depreciated using
the straight-line method over ﬁve years or, if more appropriate,using the number of production or similar units expected to beobtained from the tools (sum-of-the-units method). Especially foraircraft production programmes such as the Airbus A380 with anestimated number of aircraft to be produced using such tools,
the sum-of-the-units method effectively allocates the diminutionof value of specialised tools to the units produced. Property, plantand equipment is derecognised when it has been disposed of or
when the asset is permanently withdrawn from use. The difference
between the net disposal proceeds and the carrying amount ofsuch assets is recognised in the Consolidated Income Statementin the period of derecognition.
Investment property — Investment property is property, i.e. landor buildings, held to earn rentals or for capital appreciation or
both. The Group accounts for investment property at cost lessaccumulated depreciation and impairment losses, similar to otheritems of property, plant and equipment.
Inventories — Inventories are measured at the lower of acquisition
cost (generally the average cost) or manufacturing cost and net
realisable value. Manufacturing costs comprise all costs that are
directly attributable to the manufacturing process, such as directmaterial and labor, and production related overheads (based on
normal operating capacity and normal consumption of material,
labour and other production costs), including depreciation charges.
Net realisable value is the estimated selling price in the ordinary
course of the business less applicable variable selling expenses.
Impairment of non-ﬁnancial assets — The Group assesses at
each end of the reporting period whether there is an indication thata non-ﬁnancial asset may be impaired. In addition, intangible assets
with an indeﬁnite useful life, intangible assets not yet available foruse and goodwill are tested for impairment in the fourth quarter of
each ﬁnancial year irrespective of whether there is any indication
for impairment. An impairment loss is recognised in the amountby which the asset’s carrying amount exceeds its recoverable
amount.

22 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

The recoverable amount of an asset or a Cash Generating Unit(“CGU”) is the higher of its fair value less costs to sell or its value
in use. The recoverable amount is determined for an individual
asset, unless the asset does not generate cash inﬂows that arelargely independent of those from other assets or group of assets.
In such a case the recoverable amount is determined for the CGU
the asset belongs to. Where the recoverable amount of a CGU towhich goodwill has been allocated is lower than the CGU’s carrying
amount, ﬁrstly the related goodwill is impaired. Any exceeding
amount of impairment is recognised on a pro rata basis of thecarrying amount of each asset in the respective CGU.
The value in use is assessed by the present value of the future
cash ﬂows expected to be derived from an asset or a CGU. Cashﬂows are projected based on a detailed forecast approved bymanagement over a period reﬂecting the operating cycle of thespeciﬁ c business. The discount rate used for determining an
asset’s value in use is the pre-tax rate reﬂecting current market
assessment of (i) the time value of money and (ii) the risk speciﬁcto the asset for which the future cash ﬂow estimates have notbeen adjusted.
An asset’s fair value less costs to sell reﬂects the price the Groupwould obtain at its end of the reporting period from the asset’s
disposal in an orderly transaction between market participants
after deducting the costs of disposal. If there is no binding sales
agreement or active market for the asset, its fair value is assessedby the use of appropriate valuation models dependent on thenature of the asset, such as by the use of discounted cash ﬂow
models. These calculations are corroborated by available fairvalue indicators such as quoted market prices or sector-speciﬁcvaluation multiples.
Impairment losses of assets used in continuing operations arerecognised in the Consolidated Income Statement in those
expense categories consistent with the function of the impaired
asset.
Impairment losses recognised for goodwill are not reversed infuture periods. For any other non-ﬁnancial assets an assessment
is made at each end of the reporting period as to whether there is
any indication that previously recognised impairment losses may
no longer exist or may have decreased. If such indication exists, theGroup estimates the asset’s or cash-generating unit’s recoverable
amount. A previously recognised impairment loss is reversed only
if there has been a change in the assumptions used to determine
the asset’s recoverable amount since the last impairment loss wasrecognised. The reversal is limited so that the carrying amount of
the asset does not exceed its recoverable amount, nor exceed
the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset
in prior years. Such a reversal is recognised in the Consolidated
Income Statement.
Financial instruments — A ﬁnancial instrument is any contractthat gives rise to a ﬁnancial asset of one entity and a ﬁnancial liability
or equity instrument of another entity. The Group’s ﬁnancial assets
comprise mainly cash and short to medium-term deposits, trade

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentationand loan receivables, ﬁnance lease receivables, other quoted andunquoted ﬁnancial instruments and derivatives with a positive fairvalue. The Group’s ﬁnancial liabilities mainly include obligations
towards ﬁnancial institutions, issued bonds, loans, refundable
advances, trade liabilities, finance lease liabilities as well asderivatives with a negative fair value. The Group recognises aﬁnancial instrument on its Consolidated Statement of Financial
Position when it becomes party to the contractual provision of
the instrument. All purchases and sales of ﬁnancial assets arerecognised on settlement date according to market conventions.
The settlement date is the date an asset is delivered to or by anentity. Financial instruments are initially recognised at fair valueplus, in the case the ﬁnancial instruments are not measured at fairvalue through proﬁt or loss, directly attributable transaction costs.
Financial instruments at fair value through proﬁt or loss are initiallyrecognised at fair value, transaction costs are recognised in theConsolidated Income Statement. Finance lease receivables arerecognised at an amount equal to the net investment in the lease.
The Group assesses at each end of the reporting period whether
there is any objective evidence that a ﬁnancial asset or a groupof ﬁnancial assets may be impaired. The Group derecognises
a ﬁnancial asset only when the contractual rights to the asset’s
cash ﬂows expire or the ﬁnancial asset has been transferred andthe transfer qualiﬁes for derecognition under IAS 39. The Groupderecognises a ﬁnancial liability only when the obligation speciﬁedin the contract is discharged, cancelled or expired. When an existing
ﬁnancial liability is replaced by another from the same lender onsubstantially different terms, or the terms of an existing liability aresubstantially modiﬁed, such an exchange or modiﬁcation is treatedas a derecognition of the original liability and the recognition of a
new liability, and the difference in the respective carrying amounts
is recognised in the income statement.
Fair value of ﬁnancial instruments — The fair value of quoted
investments is based on current market prices. If the market forﬁnancial assets is not active or in the case of unlisted ﬁnancial
instruments, the Group determines fair values by using generally
accepted valuation techniques on the basis of market information
available at the end of the reporting period. Such techniques
consist in discounted cash ﬂow analysis or option pricing andother valuation models. Inputs to such techniques may include
prices achieved in recent arm’s length market transactions forthe same or a similar instrument, or inputs, other than quoted ortraded prices, that are observable for the ﬁnancial instrument.
Such input includes interest rates, foreign currency rates, credit
spreads and volatilities.
Derivative instruments are generally managed on the basis of
the Group’s net exposure to the credit risk of each particularcounterparty, and fair value information is provided to the Group’s
key management personnel on that basis. For these derivative
instruments, the fair value is measured based on the price thatwould be received to sell a net long position, or transfer a net shortposition, for a particular credit risk exposure as further describedin Note 34b).

Available-for-sale equity investments that do not have a quoted
market price in an active market and whose fair value cannot
be reliably estimated by alternative valuation methods, such asa discounted cash ﬂow model, are measured at cost, less any
accumulated impairment losses.
Investments and other financial assets — The Group’s
investments comprise investments in associates accounted forunder the equity method, other investments and other long-term
ﬁnancial assets as well as current and non-current securities andcash equivalents. Except for investments accounted for underthe equity method, the Group classiﬁ es its ﬁ nancial assets inthe following three categories: (i) at fair value through proﬁt or
loss, (ii) loans and receivables and (iii) available-for-sale ﬁnancial
assets. Their classiﬁcation is determined by management whenﬁrst recognised and depends on the purpose for their acquisition.
Within the Group, all investments in entities which do not qualify
for consolidation or equity-method accounting are classiﬁed as
non-current available-for-sale ﬁnancial assets. They are included in
the line other investments and other long-term financial assets
in the Consolidated Statement of Financial Position.
The majority of the Group’s securities consists of debt securities
and is classiﬁed as available-for-sale ﬁnancial assets.
Available for sale ﬁnancial assets — Financial assets classiﬁed asavailable-for-sale are accounted for at fair value. Changes in the fairvalue subsequent to the recognition of available-for-sale ﬁnancial
assets – other than impairment losses and foreign exchange gains
and losses on monetary items classiﬁed as available-for-sale – arerecognised directly within AOCI, a separate component of equity,
net of applicable deferred income taxes. As soon as such ﬁnancial
assets are sold or otherwise disposed of, or are determined to
be impaired, the cumulative gain or loss previously recognisedin equity is recorded as part of “other income (expense) frominvestments” in the Consolidated Income Statement for the period.
Interest earned on the investment is presented as interest incomein the Consolidated Income Statement using the effective interest
method. Dividends earned on investment are recognised as “Other
income (expense) from investments” in the Consolidated Income
Statement when the right to the payment has been established.
Financial assets at fair value through proﬁt or loss — Financial
assets at fair value through proﬁt or loss include ﬁnancial assets
held for trading and ﬁnancial assets designated at initial recognition
at fair value through proﬁt or loss. Within the Group, only derivatives
not designated as hedges are categorised as held for trading.
Furthermore, the Group designates certain ﬁnancial assets (suchas investments in accumulated Money Market Funds) at fair value
through proﬁ t or loss at initial recognition if they are part of agroup of ﬁnancial assets that is managed and its performance isevaluated on a fair value basis, in accordance with a documented
risk management or investment strategy.
Loans and receivables — Loans and receivables are nonderivative ﬁnancial assets with ﬁxed or determinable paymentsthat are not quoted in an active market. They arise when the

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

Group provides money, goods or services directly to a debtor
with no intention of trading the receivable and include also service
concession receivables. Loans and receivables are classiﬁed as
trade receivables, other investments and other current /non-current financial assets. After initial recognition loans andreceivables are measured at amortised cost using the effective
interest rate method less any allowance for impairment. Gains andlosses are recognised in the Consolidated Income Statement at
disposal of the loans and receivables, through the amortisation
process as well as in case of any impairment.
Trade receivables — Trade receivables include claims arisingfrom revenue recognition that are not yet settled by the debtor
as well as receivables relating to construction contracts. Trade
receivables are initially recognised at fair value and, provided they
are not expected to be realised within one year, are subsequently
measured at amortised cost using the effective interest method
less any allowance for impairment. Gains and losses are recognisedin the Consolidated Income Statement when the receivables are
derecognised or impaired as well as through the amortisation
process.
Current / non-current other ﬁ nancial assets — Current /non-current other ﬁnancial assets mainly include derivatives withpositive fair values, receivables from related companies, loans andare presented separately from current / non-current other assets.
Cash and cash equivalents — Cash and cash equivalents
consist of cash on hand, cash in bank, checks, ﬁxed deposits andsecurities having maturities of three months or less from the date ofacquisition, that are readily convertible to known amounts of cash
and which are subject to an insigniﬁcant risk of changes in value.
Impairment of ﬁnancial assets — The Group assesses at eachend of the reporting period whether there is any objective evidence
that a ﬁnancial asset or a group of ﬁnancial assets is impaired.
After application of the at equity method to an investment in
an associate, the Group determines whether it is necessary torecognise an impairment loss of the Group’s investment in its
associates. The Group determines at each end of the reporting
period whether there is any objective evidence that the investment
in associate is impaired. This objective evidence for impairment
includes information about signiﬁcant changes with an adverse
effect that have taken place in the technological, market economicor legal environment in which the associate operates, and thatindicate that the carrying amount of the Group’s investment may
not be recovered. A signiﬁcant or prolonged decline in the fair valueof an investment in an equity instrument below its carrying amountis also objective evidence of impairment. In case of impairment theGroup calculates the impairment amount as being the difference
between the recoverable amount of the associate and the carrying
amount of the investment in the Group’s associates and recognises
the impairment amount in the Consolidated Income Statement. Anyreversal of the impairment loss is recognised as an adjustment to
the investment in the associate to the extent that the recoverable
amount of the investment increases. As such, the goodwill related
to the Group’s associates is not individually tested for impairment.

24 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

For financial assets carried at amortised cost, at cost andfor those classiﬁed as available-for-sale, a ﬁnancial asset or agroup of ﬁnancial assets is deemed to be impaired if, and only
if, there is objective evidence of impairment as a result of one ormore events that has occurred after the initial recognition of theasset (an incurred “loss event”) and that loss event has an impact
on the estimated future cash ﬂows of the ﬁnancial asset or thegroup of ﬁnancial assets that can be reliably estimated. Evidenceof impairment may include indications that the debtors or a groupof debtors is experiencing signiﬁcant ﬁnancial difﬁculty, default
or delinquency in interest or principal payments, the probability
that they will enter bankruptcy or other ﬁnancial reorganisation
and where observable data indicate that there is a measurable
decrease in the estimated future cash ﬂows, such as changes inarrears or economic conditions that correlate with defaults.
Equity investments classified as available-for-sale areconsidered for impairment in addition to the indicators stated abovein case of a signiﬁcant or prolonged decline of their fair value
below their cost. If any such evidence exists for available-for-saleﬁnancial assets, the cumulative loss – measured as the difference
between the acquisition cost and the current fair value, less any
impairment loss on that ﬁnancial asset previously recognised in
the Consolidated Income Statement – is removed from AOCI andrecognised in the Consolidated Income Statement. Impairment
losses recognised in the Consolidated Income Statement on equity
instruments are not reversed through the Consolidated Income
Statement; increases in their fair value are recognised directly in
AOCI.
In case of the impairment of debt instruments classified asavailable-for-sale, interest continues to be accrued at the original
effective interest rate on the reduced carrying amount of the asset
and is recorded in ﬁnancial result. If, in a subsequent year, thefair value of a debt instrument increases and the increase canbe objectively related to an event occurring after the impairment
loss was recognised in the Consolidated Income Statement, theimpairment loss is reversed through the Consolidated Income
Statement.
If there is objective evidence regarding loans and receivables that
the Group is not able to collect all amounts due according to theoriginal terms of the ﬁnancial instrument, an impairment charge has
to be recognised. The amount of the impairment loss is equal tothe difference between the ﬁnancial asset’s carrying amount andthe present value of estimated future cash ﬂows, discounted at theoriginal effective interest rate, i.e. the rate that exactly discounts
the expected stream of future cash payments through maturity
to the current net carrying amount of the ﬁ nancial asset. The
carrying amount of the trade receivable is reduced through use ofan allowance account. The loss is recognised in the Consolidated
Income Statement. If in a subsequent period, the amount of
impairment decreases and the decrease is objectively related
to an event occurring after the impairment was recognised, therecognised impairment loss is reversed through the Consolidated
Income Statement.

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

Non-current assets / disposal groups classiﬁed as held forsale — Non-current assets / disposal groups classiﬁed as assets
held for sale and stated at the lower of carrying amount and fair valueless costs to sell if their carrying amount is recovered principally
through a sale transaction rather than through a continuing use.
Whilst classiﬁed as held for sale or part of a disposal group, theGroup does not depreciate or amortise a non-current asset. In
addition, equity accounting of investments in associates ceases
once classiﬁed as held for sale or distribution. Liabilities directly
associated with non-current assets held for sale in a disposalgroup are presented separately on the face of the Consolidated
Statement of Financial Position. Interest and other expenses
attributable to the liabilities of a disposal group classiﬁed as held
for sale is continued to be recognised.
To be classiﬁed as held for sale the non-current assets (or disposalgroup) must be available for immediate sale in its present condition
subject only to terms that are usual and customary for sales of such
assets (or disposal group) and its sale must be highly probable.
For a sale to be highly probable – among other criteria that haveto be fulﬁlled – the appropriate level of the Group’s management
must be committed to the plan to sell, an active programme tocomplete the plan must have been initiated and actions required
to complete the plan to sell the assets (or disposal group) should
indicate that it is unlikely that signiﬁcant changes to the plan will
be made or that the plan will be withdrawn.
If a component of the Group has either been disposed of or isclassiﬁed as held for sale and (i) represents a separate major line ofbusiness or geographical area of operations, (ii) is part of a single
co-ordinated plan to dispose of a separate major line of businessor geographical area of operations or (iii) is a subsidiary acquired
exclusively with a view to resale the component is a discontinued
operation.
Derivative ﬁnancial instruments — Within the Group derivative
ﬁnancial instruments are (i) used for hedging purposes in microhedging strategies to offset the Group’s exposure to identiﬁable
transactions or are (ii) a component of hybrid ﬁnancial instrumentsthat include both the derivative and host contract (“Embedded
Derivatives”).
In accordance with IAS 39 “Financial Instruments: Recognition andMeasurement”, derivative ﬁnancial instruments are recognised andsubsequently measured at fair value. The method of recognising
resulting gains or losses depends on whether the derivative ﬁnancial
instrument has been designated as hedging instrument, and if so,on the nature of the item being hedged. While derivative ﬁnancial
instruments with positive fair values are recorded in “current / noncurrent other ﬁnancial assets”, such derivative ﬁnancial instrumentswith negative fair values are recorded as “current / non-current
other ﬁnancial liabilities”.
a) Hedging: The Group seeks to apply hedge accounting to all its
Hedging Activities. Hedge accounting recognises symmetricallythe offsetting effects on net profit or loss of changes in the fairvalues of the hedging instrument and the related hedged item.
The conditions for such a hedging relationship to qualify forhedge accounting include: The hedge transaction is expected

to be highly effective in achieving offsetting changes in fair value
or cash flows attributable to the hedged risk, the effectivenessof the hedge can be reliably measured and there is formal
designation and documentation of the hedging relationships
and the Group’s risk management objective and strategy forundertaking the hedge at the inception of the hedge. The
Group further documents prospectively at the inception of
the hedge as well as at each closing retrospectively andprospectively its assessment of whether the derivatives used in
hedging transactions are highly effective in offsetting changes
in fair values or cash flows of hedged items with regard to thehedged risk.
Depending on the nature of the item being hedged, theGroup classifies hedging relationships that qualify for hedge
accounting as either (i) hedges of the fair value of recognised
assets or liabilities or unrecognised firm commitments (“Fair
Value Hedges”), or (ii) hedges of the variability of cash flows
attributable to recognised assets or liabilities, or highly probable
forecast transactions (“Cash Flow Hedges”).
(i) Fair value hedge: Fair value hedge accounting is mainly
applied to certain interest rate swaps hedging the exposure
to changes in the fair value of recognised assets and liabilities.
For derivative financial instruments designated as fair value
hedges, changes in the fair value of the hedging instrument
and changes in the fair value of the hedged asset or liability
attributable to the hedged risk are simultaneously recognisedin the Consolidated Income Statement.
(ii) Cash flow hedge: The Group applies cash flow hedge
accounting generally to foreign currency derivative contracts
on future sales as well as to certain interest rate swaps hedging
the variability of cash flows attributable to recognised assets
and liabilities. Changes in fair value of the hedging instruments
related to the effective part of the hedge are reported in
AOCI, a separate component of total equity, net of applicable
income taxes and recognised in the Consolidated Income
Statement in conjunction with the result of the underlying
hedged transaction, when realised. The ineffective portionis immediately recorded in “Profit for the period”. Amounts
accumulated in equity are recognised in the Consolidated
Income Statement in the periods when the hedged transaction
affects the Consolidated Income Statement, such as when theforecast sale occurs or when the finance income or financeexpense is recognised in the Consolidated Income Statement.
If hedged transactions are cancelled, gains and losses on thehedging instrument that were previously recorded in equity
are generally recognised in “Profit for the period”. Apart fromderivative financial instruments, the Group also uses financial
liabilities denominated in a foreign currency to hedge foreign
currency risk inherent in forecast transactions. If the hedging
instrument expires or is sold, terminated or exercised, or if
its designation as hedging instrument is revoked, amounts
previously recognised in equity remain in equity until theforecasted transaction or firm commitment occurs.

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

In addition, the Group uses certain foreign currency derivatives
to mitigate its foreign currency exposure arising from changes in
the fair value of recognised assets and liabilities (natural hedge).
To reﬂect the largely natural offset those derivatives provide to
the remeasurement gains or losses of speciﬁc foreign currency
balance sheet items, the Group accordingly presents the gains orlosses of those foreign exchange rate derivatives as well as the fairvalue changes of the relating recognised assets and liabilities in
the Group’s Consolidated Proﬁt before ﬁnance costs and income
taxes (EBIT) insofar as certain formal requirements are met.
Finally, in case certain derivatives or portions of these derivatives
do not qualify for hedge accounting under the speciﬁc rules of
IAS 39 “Financial Instruments: Recognition and Measurement”(for example, the non-designated time value of options orde-designated derivatives in general) or do not belong to a Natural
Hedge, changes in fair value of such derivative ﬁnancial instruments
or its portions are recognised immediately as part of the ﬁnancial
result.
The fair values of various derivative ﬁnancial instruments used as
hedging instruments are disclosed in Note 34 “Information aboutﬁ nancial instruments”. Periodical movements in the AOCI, theseparate component of total equity in which the effective portionof cash ﬂow hedges are recognised, are disclosed in Note 34d).
b) Embedded derivatives: Derivative components embedded ina non-derivative host contract are separately recognised andmeasured at fair value if they meet the definition of a derivative
and their economic risks and characteristics are not clearly andclosely related to those of the host contract. Changes in thefair value of the derivative component of these instruments arerecorded in “Other financial result”, unless bifurcated foreign
currency embedded derivatives are designated as hedging
instruments.
See Note 34 “Information about financial instruments” for a
description of the Group’s ﬁnancial risk management strategies,
the fair values of the Group’s derivative ﬁnancial instruments aswell as the methods used to determine such fair values.
Income taxes — Tax expense (tax income) is the aggregate
amount included in the determination of net proﬁt or loss for theperiod in respect of (i) Current tax and (ii) Deferred tax.
(i) Current tax is the amount of income taxes payable orrecoverable in a period. Current income taxes are calculated
applying respective tax rates on the periodic taxable profit or
tax loss that is determined in accordance with rules establishedby the competent taxation authorities. Current tax liabilities arerecognised for current tax to the extent unpaid for current andprior periods. A current tax asset is recognised in case thetax amount paid exceeds the amount due to current and priorperiods. The benefit of a tax loss that can be carried back torecover current taxes of a previous period is recognised as an
asset provided that the related benefit is probable and can bemeasured reliably.

26 — AIRBUS GROUP FINANCIAL STATEMENTS 2013(ii) Deferred tax assets and liabilities are generally recognised
on temporary valuation differences between the carrying
amounts of assets and liabilities and their respective tax
bases, as well as for net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured
using enacted tax rates to be applied to taxable income inthe years in which those temporary differences are expected
to be recovered or settled. The effect on deferred tax assets
and liabilities of a change in tax rates is recognised in the
period the new rates are enacted or substantially enacted. As
deferred tax assets anticipate potential future tax benefits,
they are recorded in the Consolidated Financial Statementsof the Group only to the extent that it is probable that futuretaxable profits will be available against which deferred tax
assets will be utilised. In principle, the recoverability test ofdeferred tax assets is assessed based on the Group’s latest
5 year operative planning also taking into account existingdeferred tax liabilities and certain qualitative aspects regarding
the nature of the temporary differences. The carrying amountof deferred tax assets is reviewed at each financial year-end.
Deferred income tax assets and deferred income tax liabilities
are offset, if a legally enforceable right exists to set off current
tax assets against current income tax liabilities and the deferredincome taxes relate to the same taxable entity and the same
taxation authority.
As the Group controls the dividend policy of its subsidiaries
it controls the timing of the reversal of temporary differences
associated with that investment (usually referred to as “outsidebasis differences”) arising from yet undistributed profits andchanges in foreign exchange rates. In general, the Grouphas determined not to distribute those profits generated byits subsidiaries in the foreseeable future and accordingly
does not recognise a deferred tax liability. For temporary
differences arising from investments in associates the Group
recognises deferred tax liabilities. The rate used reflects theassumptions that these differences will be recovered from
dividend distribution unless a management resolution forthe divestment of the investment exists at the closing date.
For joint ventures, the Group assesses its ability to control
the distribution of dividends based on existing shareholder
agreements and recognises deferred tax liabilities accordingly.
Share capital — Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new sharesor options are shown directly in equity – as a deduction – net ofany tax effects. Own equity instruments which are reacquired are
deducted from total equity and remain recognised as treasury
shares until they are either cancelled or reissued. Any gains orlosses net of taxes which are associated with the purchase, sale,issue or cancellation of the Group’s own shares are recognised
within equity.
Provisions — Provisions are recognised when the Group has apresent obligation (legal or constructive) as a result of a past event,
it is probable that an outﬂow of resources embodying economic
beneﬁ ts will be required to settle the obligation and a reliable
estimate of the obligation’s amount can be made. When the effect

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentationof the time value of money is material, provisions are measured at
the present value of the expenditure expected to be required tosettle the Group’s present obligation. As discount factor, a pretax rate is used that reﬂects current market assessments of thetime value of money and the risks speciﬁc to the obligation. The
provision’s increase in each period reﬂecting the passage of timeis recognised as ﬁnance cost.
Provisions are reviewed at each closing and adjusted as appropriate
to reﬂect the respective current best estimate. The change in themeasurement of a provision for an asset retirement obligation (seeabove “Property, plant and equipment”) is added or deductedfrom the cost of the respective asset that has to be dismantled
and removed at the end of its useful life and the site on which it
is located restored.
Provisions for guarantees corresponding to aircraft sales arerecorded to reﬂect the underlying risk to the Group in respect ofguarantees given when it is probable that an outﬂow of resources
embodying economic benefits will be required to settle theobligation and reliable estimates can be made of the amount of theobligation. The amount of these provisions is calculated to cover
the difference between the Group’s exposure and the estimatedvalue of the collateral.
Outstanding costs are provided for at the best estimate of future
cash outﬂows. Provision for other risks and charges relate to
identiﬁable risks representing amounts expected to be realised.
Provisions for contract losses are recorded when it becomesprobable that estimated contract costs based on a total cost
approach will exceed total contract revenues. Contractual penalties
are included in the contractual margin calculation. Provisions forloss making contracts are recorded as write downs of workin-process for that portion of the work which has already been
completed, and as provisions for the remainder. Losses are
determined on the basis of estimated results on completion ofcontracts and include foreign currency effects. Provisions for loss
making contracts are updated regularly.
Provisions for (i) constructive obligations and liquidated damages
caused by delays in delivery and for (ii) terminating existingcustomer orders are based on best estimates of future cash
outﬂows for anticipated payments to customers. Provisions forlitigation and claims are set in case legal actions, governmental
investigations, proceedings and other claims are pending or may
be instituted or asserted in the future against the Group which
are a result of past events, where it is probable that an outﬂow
of resources embodying economic beneﬁts will be required forthe settlement and a reliable estimate of the obligation’s amount
can be made.
Restructuring provisions are only recognised when a detailed
formal plan for the restructuring – including the concerned businessor part of the business, the principal locations affected, details
regarding the employees affected, the restructuring’s timing andexpenditures that will have to be undertaken – has been developed
and the restructuring has either commenced or the plan’s mainfeatures have already been publicly announced to those affectedby it.

Employee beneﬁ ts — The valuation of pension and postretirement benefits classiﬁed as deﬁned beneﬁt plans is based
upon the projected unit credit method in accordance with IAS 19“Employee Beneﬁts”.
The Group recognises remeasurements of the net deﬁned beneﬁt
liability in full immediately in retained earnings and presents themin its Consolidated Statements of Comprehensive Income.
Past service costs and settlement gains (losses) are immediately
recognised as an expense in the Group’s Consolidated Income
Statements when the plan amendment, curtailment or settlement
occurs.
The Group applies deﬁned beneﬁt accounting for its deﬁned beneﬁt
multi-employer plan. Accordingly, the Group accounts for its sharein the related deﬁned beneﬁt plan.
Contributions to deﬁned contribution plans are recognised as
expenses in the Consolidated Income Statement when they are
due.
Several German Group companies provide life time working
account models, being employee beneﬁt plans with a promised
return on contributions or notional contributions that qualify
as other long-term employee benefits under IAS 19. The
employees’ periodical contributions into their life time working
accounts result in corresponding personnel expense in that period
in the Consolidated Income Statement while plan assets andcorresponding provisions are offset in the Consolidated Statementof Financial Position.
Termination benefits are payable whenever an employee’s
employment is terminated before the normal retirement dateor whenever an employee accepts voluntary redundancy inexchange for these beneﬁts. The Group recognises termination
beneﬁts when it is demonstrably committed to either terminate theemployment of current employees according to a detailed formal
plan without possibility of withdrawal or to provide termination
beneﬁ ts as a result of an offer made to encourage voluntary
redundancy.
Share based compensation — Stock options issued by theGroup up to 2006 and certain Performance Units (unfunded sharepromise) are accounted for in accordance with IFRS 2 “Sharebased Payment” and qualify as equity settled share-based
payments. In 2007, the Group also introduced a Performanceand Restricted Unit plan (LTIP) which qualiﬁes as cash settled
share-based payment plan under IFRS 2. For both types,
associated services received are measured at fair value andare calculated by multiplying the number of options (or units)
expected to vest with the fair value of one option (or unit) as ofgrant date (end of the reporting period). The fair value of the option(or unit) is determined by applying the Black Scholes Option
Pricing Model.
The fair value of the services is recognised as personnel expense.
In case of equity settled share based payment plans the personnel
expense results in a corresponding increase in consolidated
retained earnings over the vesting period of the respective plan.
For cash settled share based payment plans a corresponding

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 27

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

liability is recognised. Until the liability is settled its fair value isremeasured at each end of the reporting period through theConsolidated Income Statement.
Part of the grant of both types of share-based payment plans isconditional upon the achievement of non-market performance
conditions and will only vest provided that the performance
conditions are met. If it becomes obvious during the vesting periodof an equity settled share-based payment plan that some of theperformance conditions will not be met and, hence, the numberof equity instruments expected to vest differs from that originally
expected, the expense is adjusted accordingly.
The Group offers its employees under the employee stock
ownership plan (ESOP) EADS shares at fair value matched witha number of free shares based on a determining ratio. The numberof free shares is recognised at fair value as personnel expensein the Group’s Consolidated Income Statements at grant date.
Trade liabilities — Trade liabilities are initially recorded at fairvalue. Trade liabilities having a maturity of more than 12 months
are subsequently measured at amortised cost using the effective
interest rate method.
Financing liabilities — Financing liabilities comprise obligations
towards ﬁ nancial institutions, issued corporate bonds, loans,loans to afﬁliated non-consolidated companies as well as ﬁnancelease liabilities. Financing liabilities are recorded initially at the fairvalue of the proceeds received, net of transaction costs incurred.
Subsequently, ﬁnancing liabilities other than ﬁnance lease liabilities
are measured at amortised cost using the effective interest rate
method with any difference between proceeds (net of transaction
costs) and redemption amount being recognised in “Total ﬁnanceincome (cost)” over the period of the ﬁnancing liability.
Financing liabilities to ﬁnancial institutions include liabilities fromsecurities lending transactions. In a securities lending transaction
EADS receives cash from its counterparty and transfers the
securities subject to the lending transaction as collateral. The
amount of cash collateral received is recognised as a ﬁnancing
liability. The securities lent are not derecognised, but are separately
disclosed on the balance sheet.
Current / non-current other ﬁnancial liabilities — Current /non-current other ﬁnancial liabilities mainly include refundable
advances and derivatives with a negative market value. Refundable
advances from European Governments are provided to the Groupto ﬁnance research and development activities for certain projects
on a risk-sharing basis, i.e. they have to be repaid to the European
Governments subject to the success of the project.
Further, the Group designates certain financial liabilities
representing payment obligations towards airlines denominatedin USD as hedging instruments to hedge the foreign currency risk
inherent in future aircraft sales under a cash ﬂow hedge.
Current / non-current other liabilities — Current / non-current
other liabilities mainly consist of advance payments received from
customers.

28 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

Liabilit y for put table instruments — Under cer tain
circumstances, the Group records a ﬁnancial liability rather thanan equity instrument for the exercise price of a written put option
on an entity’s equity. Re-measurement of any written put options
on non-controlling interest after initial recognition is recognisedin equity.
Litigation and claims — Various legal actions, governmental
investigations, proceedings and other claims are pending or
may be instituted or asserted in the future against the Group.
Litigation is subject to many uncertainties, and the outcome ofindividual matters is not predictable with assurance. The Group
believes that it has made adequate provisions to cover current
or contemplated litigation risks. It is reasonably possible that theﬁnal resolution of some of these matters may require the Groupto make expenditures, in excess of established reserves, over an
extended period of time and in a range of amounts that cannot
be reasonably estimated. The term “reasonably possible” is usedherein to mean that the chance of a future transaction or event
occurring is more than remote but less than likely. Although theﬁnal resolution of any such matters could have an effect on theGroup’s proﬁt for the period for the particular reporting period inwhich an adjustment of the estimated reserve would be recorded,
the Group believes that any such potential adjustment should notmaterially affect its Consolidated Financial Statements. For further
details please refer to Note 32 “Litigation and claims”.

Use of Accounting Estimates
The Group’s signiﬁcant accounting policies, as described above,are essential for the understanding of the Group’s results ofoperations, ﬁnancial positions and cash ﬂows. Certain of theseaccounting policies require accounting estimates that involve
complex and subjective judgments and the use of assumptions,some of which may be for matters that are inherently uncertain andsusceptible to change. Such accounting estimates could change
from period to period and might have a material impact on theGroup’s results of operations, ﬁnancial positions and cash ﬂows.
The assumptions and estimates used by the Group’s management
are based on parameters which are derived from the knowledge
at the time of preparing the Consolidated Financial Statements.
In particular, the circumstances prevailing at this time andassumptions as to the expected future development of the global
and industry speciﬁ c environment were used to estimate theCompany’s future business performance. Where these conditions
develop differently than assumed, and beyond the control of theCompany, the actual ﬁgures may differ from those anticipated.
In such cases, the assumptions, and if necessary, the carrying
amounts of the assets and liabilities concerned, are adjusted
accordingly.
These estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognisedin the period in which the estimate is revised if the revision affects
only that period, or in the period of the revision and future periods
if the revision affects both current and future periods.

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

Subjects that involve assumptions and estimates and that havea signiﬁcant inﬂuence on the amounts recognised in the Group’s
Consolidated Financial Statements are further described or are
disclosed in the respective Notes mentioned below.
Revenue recognition on construction contracts — The Group
conducts a signiﬁcant portion of its business under construction
contracts with customers, for example within aerospace related
governmental programmes. The Group generally accounts forconstruction projects using the percentage-of-completion method,
recognising revenue as performance on a contract progresses
measured either on a milestone or on a cost-to-cost basis
depending on contract terms. This method places considerable
importance on accurate estimates at completion as well as on theextent of progress towards completion. For the determination of the
progress of the construction contract signiﬁcant estimates include
total contract costs, remaining costs to completion, total contract
revenues, contract risks and other judgments. Management of theoperating Divisions continually reviews all estimates involved insuch construction contracts and adjusts them as necessary. See
Note 19 “Trade receivables” for further information.
Business combinations — In a business combination, allidentiﬁable assets, liabilities and contingent liabilities acquired
are recorded at the date of acquisition at their respective fair value.
One of the most signiﬁcant estimates relates to the determinationof the fair value of these assets and liabilities. Land, buildings andequipment are usually independently appraised while marketablesecurities are valued at market prices. If any intangible assets
are identiﬁed, depending on the type of intangible asset and thecomplexity of determining its fair value, the Group either consultswith an independent external valuation expert or develops the fairvalue internally, using appropriate valuation techniques which are
generally based on a forecast of the total expected future net cash
ﬂows. These evaluations are linked closely to the assumptions
made by management regarding the future performance of theassets concerned and any changes in the discount rate applied.
See Note 4 “Acquisitions and Disposals” and Note 14 “Intangible
assets” for further information.
Goodwill impairment test and recoverability of assets —The Group tests at least annually whether goodwill has suffered
any impairment, in accordance with its accounting policies. The
determination of the recoverable amount of a Cash Generating Unit
(CGU) to which goodwill is allocated involves the use of estimatesby management. The outcome predicted by these estimates isinﬂuenced by several assumptions including for example growth
assumptions of CGUs, availability and composition of future
defence and institutional budgets, foreign exchange ﬂuctuations or
implications arising from the volatility of capital markets. The Groupgenerally uses discounted cash ﬂow based methods to determine
these values. These discounted cash ﬂow calculations basicallyuse ﬁve-year projections that are based on the operative plansapproved by management. Cash ﬂow projections take into accountpast experience and represent management’s best estimate about
future developments. Cash ﬂows after the planning period are
extrapolated using estimated growth rates. Key assumptions on
which management has based its determination of fair value lesscosts to sell and value in use include estimated growth rates,
weighted average cost of capital, tax rates and foreign exchange
rates. These estimates, including the methodology used, canhave a material impact on the respective values and ultimately theamount of any goodwill impairment. Likewise, whenever property,
plant and equipment and other intangible assets are tested for
impairment, the determination of the assets’ recoverable amountinvolves the use of estimates by management and can have amaterial impact on the respective values and ultimately the amountof any impairment. See Note 14 “Intangible assets” for further
information.
Trade and other receivables — The allowance for doubtful
accounts involves significant management judgment andreview of individual receivables based on individual customer
creditworthiness, current economic trends including potential
impacts from the EU sovereign debt crisis and analysis of historicalbad debts. See Note 19 “Trade receivables” for further information.
Foreign currency derivatives — Fair value measurements offoreign currency derivatives are based on market assumptions
relating to, among others, foreign exchange basis spreads andrelevant interest rate levels. See Note 34 “Information about
Financial Instruments” for further information.
Employee beneﬁts — The Group accounts for pension and otherpostretirement beneﬁts in accordance with actuarial valuations.
These valuations rely on statistical and other factors in orderto anticipate future events. These factors include key actuarial
assumptions including the discount rate, expected salary increases
and mortality rates. In determining the appropriate discount rate,
the Group considers the interest rates of high quality corporate
bonds with an AA rating. These actuarial assumptions may differ
materially from actual developments due to changing market andeconomic conditions and therefore result in a signiﬁcant change
in postretirement employee beneﬁt obligations and the related
future expense. See Note 25b) “Provisions for retirement plans”
for further information.
Provisions — The determination of provisions, for example foronerous contracts, warranty costs, restructuring measures andlegal proceedings is based on best available estimates. Onerous
sales contracts are identiﬁed by monitoring the progress of thecontract as well as the underlying programme and updating
the estimate of contract costs, which also requires signiﬁcantjudgement related to achieving certain performance standards
as well as estimates involving warranty costs. Depending on thesize and nature of the Group’s contracts and related programmes,
the extent of assumptions, judgements and estimates in thesemonitoring processes differs. Especially, the introduction of newcommercial aircraft programmes (such as the A350 XWB) or major
derivative aircraft programmes particularly involves an increased
level of estimates and judgements associated with the expecteddevelopment, production and certiﬁcation schedules and expected
cost components. A commercial aircraft contract or amendment
to a contract may include option clauses for extension as well as
termination of full or part of the contract. The assessment of theprobability of execution of these options is based on management’s

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

best estimates. Estimates and judgements are subject to change
based on new information as contracts and related programmes
progress. Furthermore, the complex design and manufacturing
processes of the Group’s industry require challenging integrationand coordination along the supply chain including an on-goingassessment of supplier’s assertions which may additionally impact
the outcome of these monitoring processes. See Note 25c) “Other
provisions” for further information.
Legal contingencies — Group companies are parties tolitigations related to a number of matters as described in Note 32“Litigation and claims”. The outcome of these matters may havea material effect on the ﬁnancial position, results of operations or
cash ﬂows of the Group. Management regularly analyses current
information about these matters and provides provisions forprobable contingent losses including the estimate of legal expense
to resolve the matters. Internal and external lawyers are used forthese assessments. In making the decision regarding the needfor provisions, management considers the degree of probabilityof an unfavourable outcome and the ability to make a sufﬁciently
reliable estimate of the amount of loss. The ﬁling of a suit or formal
assertion of a claim against Group companies or the disclosure ofany such suit or assertions, does not automatically indicate that aprovision may be appropriate. See Note 32 “Litigation and claims”
for further information.
Income taxes — The Group operates and earns income innumerous countries and is subject to changing tax laws in multiple
jurisdictions within these countries. Signiﬁcant judgments arenecessary in determining the worldwide income tax liabilities.
Although management believes that it has made reasonableestimates about the final outcome of tax uncertainties, noassurance can be given that the ﬁnal tax outcome of these matters3.

will be consistent with what is reﬂected in the historical income tax
provisions. Such differences could have an effect on the current
income tax liabilities and deferred income tax liabilities in the
period in which such determinations are made. At each end of
the reporting period, the Group assesses whether the realisationof future tax beneﬁts is probable to recognise deferred tax assets.
This assessment requires the exercise of judgment on the part ofmanagement with respect to, among other things, beneﬁts that
could be realised from available tax strategies and future taxable
income, as well as other positive and negative factors. The recorded
amount of total deferred tax assets could be reduced if estimatesof projected future taxable income and beneﬁts from available tax
strategies are lowered, or if changes in current tax regulations areenacted that impose restrictions on the timing or extent of theGroup’s ability to utilise future tax beneﬁts. In principle, the basis
for the recoverability test of deferred tax assets is the same as theGroup’s latest 5 year operative planning also taking into accountcertain qualitative aspects regarding the nature of the temporary
differences. The further looking into the future is necessary toseek sufﬁcient taxable proﬁts, the more subjective the projections
become. However, as a general cut off of the lookout period would
be arbitrary, the Group determines the lookout period applied foran entity also considering certain qualitative factors. Considerationof such qualitative factors could result in not applying the full 5 year
operative planning period for the deferred tax asset recoverability
assessment as well as the contrary, i.e. extending the period tothe strategic planning period. Qualitative factors include but are
not limited to an entity’s history of planning accuracy, performancerecords, business model, backlog, existence of long-term contracts
as well as the nature of temporary differences. See Note 13 “Income
Taxes” for further information.

Scope of Consolidation

Perimeter of consolidation (31 December 2013) — The
Consolidated Financial Statements include, in addition to
EADS N.V.:¬ 2013: 262 (2012: 271) companies which are fully consolidated;¬ 2013: 47 (2012: 47) companies which are proportionately
consolidated;¬ 2013: 19 (2012: 23) investments in associates accounted forusing the equity method.

30 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

The number of investments in associates only comprises therespective parent company.
Signiﬁcant subsidiaries, associates and joint ventures are listed
in the Appendix entitled “Information on principal investments”.

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation4.

Acquisitions and Disposalsa) Acquisitions and other M&A Transactions
The following insigniﬁcant M&A transaction of the Group’s divisions was completed during the ﬁnancial year 2013.
On 17 May 2013, Cassidian Cybersecurity SAS, Elancourt (France) acquired a 83.9% controlling interest in Arkoon Network Security
SA, Lyon (France) for a total consideration of € 14 million.
The following table summarises the consideration transferred, the fair value of identiﬁable assets acquired, liabilities assumed and any
non-controlling interest as at the acquisition date. The fair values remain provisional due to ongoing purchase price allocation project,
but will be ﬁnalised within 12 months after the acquisition date.

Fair value recognised on acquisition2013 Arkoon acquisition(In € million)

Intangible assets(1)3Customer relationships

2

Technologies

1

Property, plant and equipment

1

Inventories

0

Trade receivables

1

Other assets(2)8Cash and cash equivalents

1

14
Provisions(3)1Financing liabilities

1

Trade liabilities0

Tax liabilities

3

Other liabilities

6

11
Net assets acquired3

Non-controlling interests(4)0

The Group’s portion in net assets acquired

3

Preliminary goodwill(5) arising on acquisition (see Note 14 “Intangible Assets”)

11

Total consideration

14(1) The customer relationships and the technologies acquired are expected to be amortised over a period between 3-5 years and 2-5 years respectively.
(2) Includes the revaluation of the investment in Skyrecon US (a non-consolidated 100% subsidiary) for € 1.4 million.
(3) Includes contingent liabilities for € 0.1 million.
(4) Non-controlling interest portion was measured at its proportional share in net assets.
(5) None of the goodwill of the Group’s 2013 M&A transaction is considered to be tax deductible in the respect of local tax accounts.

On 14 June 2013 Cassidian Cybersecurity SAS made a mandatory
simpliﬁ ed public offering on the remaining shares of Arkoon
Network Security in line with General Regulations of the French
Financial Market Authority (“AMF”). As a result of the tender offerthat ended 4 July 2013 Cassidian’s interest in Arkoon increased
to 97.3%. Subsequent squeeze-out procedure of remaining
shareholders was ﬁ nalise d on 15 July 2013 leaving Cassidian
as sole shareholder of Arkoon. The total consideration for theacquisition of the remaining 16.1% of the shares was € 2.7 million.
From the date of acquisition, Arkoon Network Security SA has
contributed € 6 million to revenues for the period of the Group.
The contribution to the proﬁt before ﬁnance cost and income tax
was immaterial.

Transactions not yet closed
On 16 December 2013, the Group has entered into a Share Purchase
Agreement with Raiffeisenverband Salzburg to acquire 100%
shares in Salzburg München Bank AG, a fully-licensed bank basedin Munich with approximately € 350 million total assets serving
small and medium enterprises and private clients. The acquisitionof Salzburg München Bank aims to provide additional ﬁnancing
options for the Group’s businesses and is subject to obtaining
regulatory approvals, i.e. the Ownership Control Procedures with
the German Financial Supervisory Authority (“BaFin”) and approval
from the German antitrust authority (“BKartA”).

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

The section does not necessarily provide a comprehensive listof all purchase transactions signed but not yet closed as at thebalance sheet date.

Transactions with non-controlling shareholders
On 31 May 2013, Astrium Services GmbH, Ottobrunn (Germany)acquired remaining non-controlling interest of 24.9% in ND
Satcom GmbH, Immenstaad (Germany) from SES S.A., Betzdorf(Luxemburg). The amount of the total consideration was € 1.
Apart from those mentioned, other acquisitions of the Group were
not signiﬁcant – neither individually nor collectively.

Acquisitions and other M&A transactions
during 2012
During 2013 the Group finalised the following individuallyinsigniﬁcant M&A transactions of the prior year.
On 3 April 2012, Astrium acquired 66.8% of Space Engineering
SpA, Rome (Italy), a specialist in digital telecommunications, RF
and antenna equipment engineering for both space and groundbased applications for a total consideration of € 10 million.
This acquisition enhanced Astrium’s capability to develop andmanufacture sophisticated telecommunications hardware andunderlines Astrium’s commitment to the Italian space market.
Space Engineering SpA reported revenues of € 17 million for thefull year 2012.
On 1 July 2012, Cassidian acquired 51% of Rheinmetall Airborne
Systems GmbH, Bremen (Germany), for a total consideration of€ 85 million, to pursue Rheinmetall’s activities related to Unmanned
Aerial Systems (UAS) as well as cargo loading systems (CLS)
together with Rheinmetall within a new entity. Rheinmetall Airborne
Systems GmbH reported revenues of € 63 million for the full year2012.

32 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

On 1 October 2012, Cassidian acquired 75.1% of the shares of Carl
Zeiss Optronics GmbH, Oberkochen (Germany), with the intention
to run the optics and optronics activities of Carl Zeiss Optronics
GmbH together with Carl Zeiss AG for a total consideration of€ 121 million. Carl Zeiss Optronics GmbH is a manufacturer of
optronic, optic and precision-engineered products for military andcivil applications. Carl Zeiss Optronics GmbH reported revenuesof € 110 million for the full year 2012.
On 16 November 2012, Cassidian acquired 99.8% of Netasq,
Villeneuve d’Ascq (France), a leading expert and pioneer in the
IT security market for a total consideration of € 27 million. Netasq
reported revenues of € 17 million for the full year 2012.
All Cassidian acquisitions are expected to strengthen Cassidian’s
market positions in the global UAS-, sensor- and cybersecurity
related markets by providing access to broader development
resources as well as additional product and service offerings being
complementary to Cassidian’s current portfolio.
On 20 November 2012, the Group acquired Eltra Holdings Pte
Ltd., Singapore (Singapore), an aerospace group involved invarious aerospace supply chain and MRO activities for a total
consideration of € 28 million. Eltra Holdings Pte Ltd. reported
revenues of € 31 million for the full year 2012.
Finally, Eurocopter expanded the MRO engine business of its
subsidiary Vector Aerospace Corp., Toronto (Canada), via several
asset deals in the ﬁrst half year 2012, primarily in the Asia-Paciﬁcregion, for a total consideration of € 43 million. The acquired
businesses reported revenues of € 17 million for the full year 2012.

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation

The following table summarises the aggregated changes to provisional 2012 purchase price allocation ﬁgures and the ﬁnal identiﬁable
assets and liabilities as at the date of acquisition:

Fair value recognised on acquisition

Final figures for all 2012individually insignificant
acquisitions

Aggregatedchanges

Provisional figures
for all 2012acquisitions(In € million)

Intangible assets

51

(7)

58

Customer / supplier relationships

11

(4)

15

Technologies / Licenses

39

(2)

41

Trademarks

1

(1)

2

Property, plant and equipment

41

0

41

Inventories

105

0

105

Trade receivables

63

(2)

65

Other assets

50

8

42

Cash and cash equivalents

58

0

58

368

(1)

369

Provisions

147

21

126

Financing liabilities

11

0

11

Trade liabilities

36

4

32

Tax liabilities

8

(2)

10

Other liabilities

70

3

67

272

26

246

Net assets acquired

96

(27)

123

Non-controlling interests

0

(8)

8

The Group’s portion in net assets acquired

96

(19)

115

Goodwill arising on acquisition

213

14

199

Total consideration

309

(5)

314

Apart from those mentioned, other acquisitions by the Group were not signiﬁcant.

b) Disposals
On 31 January 2013, ST Aerospace Ltd., Singapore (Singapore) acquired a 35% non-controlling interest in Elbe Flugzeugwerke, Dresden(Germany) (EFW) by increase in capital of € 2.5 million in EFW, the Group as the former sole shareholder retains 65% of the shares of EFW.
Apart from those mentioned, other disposals by the Group were not signiﬁcant.

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Notes to the Consolidated Financial Statements (IFRS)
2.2 Notes to the Consolidated Income Statements

2.2 Notes to the Consolidated Income
Statements
5.

Segment Reporting

Through the end of 2013, the Group operated in ﬁve reportablesegments which reﬂect the internal organisational and management
structure according to the nature of the products and services
provided.
¬ Airbus Commercial — Development, manufacturing, marketingand sale of commercial jet aircraft of more than 100 seats; aircraft
conversion and related services. Additionally, the development,
manufacturing, marketing and sale of regional turboprop aircraft –ATR Group – and aircraft components – Sogerma Group – arereclassiﬁed from “Other Businesses” and are managed by Airbus
Commercial from 1 January 2013 onwards.
¬ Airbus Military — Development, manufacturing, marketing andsale of military transport aircraft and special mission aircraft andrelated services.
The above mentioned reportable segments Airbus Commercialand Airbus Military form the Airbus Division.
¬ Eurocopter — Development, manufacturing, marketing and saleof civil and military helicopters; provision of helicopter related
services.

34 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

¬ Astrium — Development, manufacturing, marketing and saleof satellites, orbital infrastructures and launchers; provision of
space related services.
¬ Cassidian — Development, manufacturing, marketing and saleof missiles systems, military combat aircraft and training aircraft;provision of defence electronics and of global security market
solutions such as integrated systems for global border security
and secure communications solutions and logistics; training,
testing, engineering and other related services.
The following tables present information with respect to the Group’sbusiness segments. After the reclassiﬁcation of ATR Group andSogerma Group to “Airbus Commercial”, “Others / HQ / Conso”
comprises the Group’s activities managed in the US, the holding
function of EADS Headquarters and consolidation effects.

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Notes to the Consolidated Financial Statements (IFRS)
2.2 Notes to the Consolidated Income Statementsa) Business Segment Information for the year ended 31 December 2013(In € million)

Total revenues
Internal revenues

Airbus Airbus
Total
Others /Commercial Military Eurocopter Astrium Cassidian Segments HQ / Conso. Consolidated
39,889

2,893

6,297

5,784

5,976

60,839457

61,296

(933)

(251)

(486)

(24)

(345)

(2,039)(1)(2,040)

Revenues

38,956

2,642

5,811

5,760

5,631

58,800456

59,256

Segment result

1,568

138

393

343

411

2,853

(541)(3)2,312

thereof additions to otherprovisions (see Note 25c)

1,046

52

533

144

1,011

2,786

513(3)

3,299

thereof impairments ofintangible assets and PPE

(20)

0

0

(14)

(12)

(46)

0

(46)

Share of profit from associates
accounted for under the equity
method

1

27

3

0

15

46

249

295

1,569

165

396

343

426

2,899

(292)(3)2,607Goodwill impairment

0

0

0

0

0

0

15

15

Exceptionals

26

1

1

4

6

38

1

39

1,595

166

397

347

432

2,937

(276)(3)2,661Profit before finance costs
and income taxes

EBIT pre-goodwill impairment
and exceptionals(see definition in Note 5c)
Total finance costs(630)

Income tax expense(502)

Profit for the period

1,475

Attributable to:Equity owners of the parent(Net income)

1,465

Non-controlling interests

10

Other information
Identifiable segment assets(incl. goodwill)(1)thereof goodwill
Investments in associates
Segment liabilities(2)thereof provisions (see Note 25)

40,109

4,250

9,769

7,715

9,023

70,866416

71,282

6,680

12

302

1,235

2,720

10,94913

10,962

4

0

6

0

139

149

2,753

2,902

35,829

5,627

8,691

7,706

9,652

67,505682

68,187

6,958

464

2,514

1,098

3,153

14,1871,182

15,369

Capital expenditures(excl. leased assets)

2,120

76

279

248

169

2,892

57

2,949

Depreciation, amortisation

1,213

66

136

314

176

1,905

63

1,968

Research and development
expenses

2,438

6

306

127

248

3,125

35

3,160

(1) Segment assets exclude investments in associates, current and deferred tax assets as well as cash and cash equivalents and securities as segment result does not include shareof profit from associates, total finance costs and income taxes.
(2) Segment liabilities exclude current (€ 616 million) and deferred tax liabilities (€ 1,487 million) and interest bearing liabilities (€ 11,967 million).
(3) includes €(292) million expenses for restructuring provisions associated to the Group’s reorganisation mainly in the defence and space business.

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 35

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Notes to the Consolidated Financial Statements (IFRS)
2.2 Notes to the Consolidated Income Statementsb) Business Segment Information for the year ended 31 December 2012(In € million)

Total revenues
Internal revenues
Revenues
Segment result(3)Airbus Airbus
Total Others / HQ /Commercial(4) Military Eurocopter Astrium Cassidian Segments
Conso.(4) Consolidated
37,624

2,131

6,264

5,817

5,740

57,576639

58,215

(625)

(279)

(540)

(23)

(232)

(1,699)(36)(1,735)36,999

1,852

5,724

5,794

5,508

55,877603

56,480

1,122

74

305

308

99

1,908

(60)

1,848

thereof additions to otherprovisions (see Note 25c)

795

50

843

157

645

2,490

191

2,681

thereof impairments ofintangible assets and PPE

(30)

0

0

0

(100)

(130)

0

(130)

Share of profit from associates
accounted for under the equity
method

0

18

3

(1)

23

43

198

241

Profit before finance costs
and income taxes(3)

1,122

92

308

307

122

1,951

138

2,089

Goodwill impairment

0

0

0

0

0

0

17

17

Exceptionals

25

1

1

4

6

37

1

38

1,147

93

309

311

128

1,988

156

2,144

EBIT pre-goodwill impairment
and exceptionals(3)(see definition in Note 5c)
Total finance costs(453)

Income tax expense(3)(438)

Profit for the period(3)1,198Attributable to:Equity owners of the parent(Net income)(3)1,197

Non-controlling interests

1

Other information
Identifiable segment assets(incl. goodwill)(1)thereof goodwill
Investments in associates

36,331

4,051

9,354

7,855

9,634

67,225

173

67,398

6,670

12

323

1,236

2,711

10,95265

11,017

1

0

4

0

133

138

2,524

2,662

Segment liabilities(2),(3)39,780

1,803

8,794

7,869

10,20368,449400

68,849thereof provisions(see Note 25)(3)

6,980

1,226

2,668

1,116

2,984

14,974915

15,889

Capital expenditures(excl. leased assets)

2,321

85

323

393

179

3,301

(31)

3,270

Depreciation, amortisation

1,225

77

134

298

252

1,986

67

2,053

Research and development
expenses

2,428

11

297

128

234

3,098

44

3,142

(1) Segment assets exclude investments in associates, current and deferred tax assets as well as cash and cash equivalents and securities as segment result does not include shareof profit from associates, total finance costs and income taxes.
(2) Segment liabilities exclude current (€ 458 million) and deferred tax liabilities (€ 1,502 million) and interest bearing liabilities (€ 10,892 million).
(3) 2012 figures are adjusted due to revised IAS 19 and due to PPA adjustments (see Note 2a).
(4) 2012 figures are adjusted due to the inclusion of ATR group and SOGERMA group into Airbus Commercial and the remaining activities of “Other Businesses” into “Others / HQ / Conso”.

As a rule, inter-segment transfers are carried out on an arm’s length
basis. Inter-segment sales predominantly take place between
Airbus Commercial and Airbus Military and between Eurocopterand Airbus Commercial as well as between Cassidian and Airbus
Military.

36 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

Capital expenditures represent the additions to property, plantand equipment and to intangible assets (excluding additions togoodwill; for further details see Note 5e) “Capital expenditures”).

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Notes to the Consolidated Financial Statements (IFRS)
2.2 Notes to the Consolidated Income Statementsc) EBIT Pre-Goodwill Impairment and Exceptionals
The Group uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals”
refers to such items as depreciation expenses of fair value adjustments relating to the EADS merger, the Airbus Combination and theformation of MBDA, as well as impairment charges thereon. EBIT pre-goodwill impairment and exceptionals is treated by management
as a key indicator to measure the segments’ economic performances.
(In € million)

2013

2012

2011

Profit before finance costs and income taxes(1)

2,607

2,089

1,541

15

17

42

Disposal and impairment of goodwill
Exceptional depreciation / disposal

EBIT pre-goodwill impairment and exceptionals(1)

39

38

41

2,661

2,144

1,624

2

(1) Previous years’ figures are adjusted due to revised IAS 19.

d) Revenues by Geographical Area
(In € million)

2013

2012

2011

Germany

4,476

5,231

5,074

France

4,630

4,685

4,762

United Kingdom

3,191

3,320

2,757

Spain

1,528

646

702

Other European Countries

7,223

7,124

7,359

Asia / Pacific

19,557

18,34414,303

North America

8,781

7,681

5,852

Middle East

5,459

5,413

5,111

Latin America

3,529

3,540

2,874

Other Countries

882

496

334

Consolidated

59,25656,48049,128

Revenues are allocated to geographical areas based on the location of the customer.

e) Capital Expenditures By Geographical Area
(In € million)

2013

2012

2011

France

1,445

1,578

951

Germany

815

818

576

United Kingdom

312

448

333

Spain

203

212

255

Other Countries

174

214

82

2,949

3,270

2,197

175

350

243

3,124

3,620

2,440

Capital expenditures excluding leased assets
Leased assets
Capital expenditures

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 37

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Notes to the Consolidated Financial Statements (IFRS)
2.2 Notes to the Consolidated Income Statementsf)

Property, Plant and Equipment by Geographical Area

(In € million)

2013

2012

2011

France

6,110

5,618

4,992

Germany

4,475

4,164

3,950

United Kingdom

2,829

2,846

2,728

Spain

1,364

1,314

1,273

656

678

629

15,434

14,62013,572Other Countries

Property, plant and equipment by geographical area

Property, plant and equipment split by geographical area excludes leased assets of € 422 million (2012: € 576 million and 2011:€ 574 million).

6.

Revenues and Gross Margin

Revenues in 2013 reach € 59,256 million compared to€ 56,480 million in 2012 and € 49,128 million in 2011.

contracted research and development and customer ﬁnancing
revenues.

Revenues are mainly comprised of sales of goods and services,
as well as of revenues associated with construction contracts
accounted for under the percentage-of-completion method,

For a breakdown of revenues by business segment andgeographical area, refer to Note 5 “Segment Reporting”.

Details of Revenues:(In € million)

2013

2012

2011

Revenues from construction contracts

9,055

8,962

8,808

Other revenues

50,20147,51840,320Total

59,25656,48049,128

7,730

7,465

6,027

Thereof service revenues including sale of spare parts

Revenues of € 59,256 million (2012: € 56,480 million) increaseby 5%. Airbus Commercial delivered more aircraft (626 withrevenue recognition versus 588 in the previous year, of which
585 with revenue recognition) and Cassidian as well as Eurocopter
contributed also positively. Airbus Military includes revenues
related to the A400M launch contract of € 1,006 million (2012:€ 513 million). Astrium revenues decrease slightly.
Revenues in 2012 of € 56,480 million (2011: € 49,128 million)
increased by 15%. Airbus Commercial delivered more aircraft(588, of which 585 with revenue recognition versus 534 in theprevious year, but 536 with revenue recognition (2 operating leases
sold down)) and Astrium as well as Eurocopter contributed also
positively. Airbus Military includes revenues related to the A400M
launch contract of € 513 million (2011: € 758 million). Cassidian
revenues decrease slightly.
The Gross Margin increases by €+463 million to € 8,361 million
compared to € 7,898 million (adjusted) in 2012. This improvement
is mainly related to Airbus Commercial due to higher deliveries ofthe long range and single aisle programmes, better operational
performance, an improvement at the A380 as well as lower
expenses for A380 wing rib provisioning and no one-off charges
in Cassidian. The improvement is partly compensated by higher

38 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

A350 XWB programme support cost, negative currency oneoffs at Airbus Commercial compared to 2012 and an update of
the A350 XWB loss making contract provision (€-434 million net
charge) to reﬂect mainly the higher level of recurring cost.
The A350 XWB entry-into-service is scheduled for the end of
2014. Airbus continues to make signiﬁcant progress on A350 XWB
programme. Since the ﬁrst ﬂight in June 2013, the entire ﬂight
programme envelope has been cleared and ﬁrst tests of all major
aircraft systems successfully performed. Airbus is in the mostcritical phase of the A350 XWB programme.
The industrial ramp up preparation is underway and associatedrisks will continue to be closely monitored in line with the schedule,
aircraft performance and overall cost envelope, as per customers’commitments.
Based on an updated technical solution concept to ﬁx permanently
the retroﬁt of the A380 wing rib issue, an additional amount of€ 85 million was recognised for the repair costs on delivered aircraft
this year. Contractually, Airbus Commercial is not liable versus
airlines for loss of use, revenue or proﬁt or for any other direct,
incidental or consequential damages related to wing ribs issue.
However, in view of overall commercial relationships, contracts
adjustments may occur, and be considered on a case by case basis.

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Notes to the Consolidated Financial Statements (IFRS)
2.2 Notes to the Consolidated Income Statements

Airbus Commercial booked in the ﬁrst half-year 2012 a charge of€-124 million, which accounts for an actual delay incurred of aroundthree months. In relation to the end of the Hawker 900 businessjet programme where Airbus Commercial was a subcontractor,a charge of €-76 million was recorded in the third quarter 2012.
Eurocopter is continuing its high stake discussions with several

7.

NH90 and Tiger customers, whereby a charge of €-100 million
for expected impacts of the renegotiation of governmental
programmes is included. Cassidian recognised a restructuring
charge (in total) of €-98 million, of which €-49 million are allocatedto cost of sales, and an additional expense of €-100 million for
impairment charges.

Functional Costs

Inventories recognised as an expense during the period amountto € 40,387 million (2012: € 39,639 million; 2011: € 35,036 million).

Further included in cost of sales are amortisation expenses offair value adjustments of non-current assets in the amount of€ 39 million (2012: € 38 million; 2011: € 40 million); these are related
to the EADS merger and the Airbus Combination.

Personnel expenses are:(In € million)

2013

2012

2011

Wages, salaries and social contributions

12,637

11,692

10,286

Net periodic pension cost (see Note 25b)(1)

564

567

495

13,201

12,25910,781

Total(1) Previous years’ figures are adjusted due to revised IAS 19.

8.

Research and Development Expenses

Research and development expenses in 2013 amount to€ 3,160 million compared to € 3,142 million in 2012 and € 3,152 million
in 2011, primarily reﬂecting R&D activities at Airbus Commercial.

9.

The main contribution to the expenses comes from the A350 XWB
programme. In addition, an amount of € 354 million of development
costs for the A350 XWB programme has been capitalised.

Other Income(In € million)

2013

2012

2011

Other income

236

184

359

Thereof rental income

15

6

16

Thereof income from sale of fixed assets

44

14

9

Thereof release of allowances

5

2

2

Thereof badwill and other gains related to business combinations

0

0

26

The decrease in other income in 2012 is mainly due to a release of refundable advances of € 192 million at Airbus Commercial recognisedin 2011 (see Note 28 “Other Liabilities”).

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 39

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Notes to the Consolidated Financial Statements (IFRS)
2.2 Notes to the Consolidated Income Statements

10. Other Expenses(In € million)

2013

2012

2011

Other expenses

263

229

221

Thereof goodwill impairment charge

15

17

20

Thereof loss from disposal of fixed assets

6

3

18

Regarding the goodwill impairment charge please refer to Note 14 “Intangible assets”.

11. Share of Proﬁt from Associates Accounted for under the Equity Method
and Other Income from Investments

2013

2012

2011

Share of profit from associates

295

241

164

Other income from investments

51

6

28

346

247

192

(In € million)

Total
The share of profit from associates accounted for underthe equity method in 2013 is mainly derived from the result of
the equity investment in Dassault Aviation of € 247 million (2012:€ 198 million; 2011: € 146 million). For the ﬁrst half-year of 2013,
Dassault Aviation published a net income of € 135 million which has
been recognised by the Group in its half year ﬁnancial statements
2013 with its share of 46.32% amounting to € 62 million. Since forthe second half-year 2013 no published ﬁnancial information isavailable yet from Dassault Aviation at the date of authorisation for
issue of the 2013 Consolidated Financial Statements, the Group
uses a best estimate for the net income of Dassault Aviation.
Furthermore, the Group’s net income includes an IFRS catch-up
adjustment for its equity investment in Dassault Aviation.

For the ﬁ rst half-year of 2012, Dassault Aviation published a
net income of € 191 million which has been recognised by theGroup in its half year ﬁ nancial statements 2012 with its shareof 46.32% amounting to € 88 million. Since for the second halfyear 2012 no published ﬁnancial information is available yet from
Dassault Aviation at the date of authorisation for issue of the 2012
Consolidated Financial Statements, the Group uses a best estimate
for the net income of Dassault Aviation. Furthermore, the Group’s
net income includes an IFRS catch-up adjustment for its equity
investment in Dassault Aviation.

12. Total Finance Costs
Interest result in 2013 comprises interest income of € 168 million(2012: € 237 million; 2011: € 377 million) and interest expense of€-497 million (2012: €-522 million; 2011: €-364 million). Included
in interest income is the return on cash and cash equivalents,
securities and ﬁnancial assets such as loans and ﬁnance leases.
Interest expense includes interests on ﬁnancing liabilities and on
European Government refundable advances of €-254 million (2012:€-272 million; 2011: €-92 million) which was positively impacted
in 2011 by the release of € 120 million following the termination of
the A340 programme.

40 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

Other financial result in 2013 amounts to €-301 million (2012:€-168 million and in 2011: €-233 million) and mainly includes
charges from the unwinding of discounts by €-171 million(2012: €-180 million; 2011: €-172 million), the negative impact fromforeign exchange translation of monetary items of €-64 million(2012: €+41 million; 2011: €+109 million) and the negative revaluationof ﬁnancial instruments of €-54 million (2012: €-11 million; 2011:€-94 million).
In 2013, the Group capitalised € 12 million of borrowing cost on
the production of qualifying assets (2012: € 5 million). The Group’s
borrowing rate at the end of 2013 was 2.24% (2012: 3.20%).

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Notes to the Consolidated Financial Statements (IFRS)
2.2 Notes to the Consolidated Income Statements

13. Income Taxes
The expense for income taxes is comprised of the following:(In € million)

Current tax expense
Deferred tax expense

Total

(1)

(1)

2013

2012

2011

(470)

(409)

(253)

(32)

(29)

(84)

(502)

(438)

(337)

(1) Previous years’ figures are adjusted due to revised IAS 19.

Deferred tax assets and liabilities are measured using enacted
tax rates to be applied to taxable income in the years in which
temporary differences are expected to be recovered or settled. The
Group’s parent company, EADS N.V., legally seated in Amsterdam,
The Netherlands, applies Dutch tax law using an income tax rateof 25.0% for 31 December 2013, for 31 December 2012 and for
31 December 2011.

Regarding German subsidiaries, the German federal corporate
tax rate amounts to 15%. In addition, there is a surcharge(Solidaritätszuschlag) of 5.5% on the amount of federal corporate
taxes. In addition to corporate taxation, the trade taxes amountto 14.2% on average. In aggregate, the enacted tax rate which
has been applied to German deferred taxes amounts to 30% in
2013, 2012 and 2011.

In France a tax law has been enacted in December 2013 changing
the rate for income taxes to 38% for the years 2013 and 2014. For
subsequent years the tax rate should go down again to 34.43%.
Deferred taxes are calculated accordingly. The tax rate for 2012
and 2011 for French companies had been at 36.1%.

With respect to the Spanish subsidiaries, the corporate income
tax rate amounts to 30% in 2013, 2012 and 2011.
All other foreign subsidiaries apply their national tax rates.

The following table shows a reconciliation from the theoretical income tax (expense) – using the Dutch corporate tax rate of 25.0% in
2013, 2012 and 2011 to the reported tax (expense). The reconciling items represent, besides the impact of tax rate differentials andtax rate changes, non-taxable beneﬁts or non-deductible expenses arising from permanent differences between the local tax baseand the reported Consolidated Financial Statements according to IFRS rules.
(In € million)

2013

2012

2011

Profit before income taxes(1)

1,977

1,636

1,321

* Corporate income tax rate

25.0%

25.0%

25.0%

Expected (expense) for income taxes(1)

(494)

(409)

(330)

(185)

(154)

(102)

104

76

58

Effects from tax rate differentials(1)

Income from investments / associates
Tax credit for R&D expenses

73

54

68

Change of tax rate

(44)

(22)

(45)

Change in valuation allowances

102

44

(12)

Non-deductible expenses and tax-free income

(48)

(21)

(10)

Other

Reported tax (expense)(1)

(10)

(6)

36

(502)

(438)

(337)

(1) Previous years’ figures are adjusted due to revised IAS 19.

Changes in valuation allowances represent reassessments of
the recoverability of deferred tax assets based on future taxable
proﬁ ts of certain companies mainly for Airbus Commercial in
the United Kingdom and in Germany. The amount of change invaluation allowances of € 102 million in 2013 (2012: € 44 million,
2011: €-12 million) excludes a positive impact of € 73 million(2012: € 56 million, 2011: € 22 million) from a change in tax rates
which is presented in the line “change of tax rate”. Changes of tax
rates in 2013 mainly relate to changes in the tax laws in the United

Kingdom and in France. In 2011, the line “Other” mainly reﬂecteda release of an income tax provision related to a reassessment oftax audit proceedings.
Deferred income taxes are the result of temporary differences
between the carrying amounts of certain assets and liabilities inthe ﬁnancial statements and their tax bases. Future tax impacts
from net operating losses and tax credit carry forwards are also
considered in the deferred income tax calculation.

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 41

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Notes to the Consolidated Financial Statements (IFRS)
2.2 Notes to the Consolidated Income Statements

Deferred income taxes as of 31 December 2013 are related to the following assets and liabilities:

1 January 2013
DeferredTax
assets(In € million)

DeferredTaxliabilities

Other movements

Movement throughincome statement

OCI /IAS 19R&D tax
credits

Others(1)Deferredtax benefit(expense)

31 December 2013
DeferredTax
assetsDeferredTaxliabilities

Intangible assets

153

(423)

0

1

0

(56)

151

(476)

Property, plant and equipment381(1,139)

0

1

0

(101)

427

(1,285)Investments and other long-term financial assets
Inventories
Receivables and other assets

313

(105)

13

0

0

(37)

336

(152)

1,752

(37)

0

3

0

(788)

1,166

(236)

102

(2,328)

(391)

(3)

0

(14)

258

(2,892)

1

(9)

0

0

0

5

3

(6)

Prepaid expenses
Provision for retirement plans

(2)

1,147

0

20

0

0

40

1,207

0

2,385

(276)

0

(2)

0

(14)

2,450

(357)

Liabilities

684(1,324)

(333)

(1)

0

755

805

(1,024)

Deferred income(2)

225

(36)

0

(92)

0

(66)

77

(46)

Net operating loss and tax credit carry forwards

2,383

0

0

(56)

51

69

2,447

0

Deferred tax assets / (liabilities)
before offsetting(2)9,526(5,677)

(691)

(149)

51

(207)

9,327

(6,474)

Valuation allowances on deferred tax assets

(819)

0

0

144

0

175

(500)

0

Set-off(4,175)

4,175

0

0

0

0

(4,987)

4,987

Net Deferred tax assets / (liabilities)(2)

4,532(1,502)

(691)

(5)

51

(32)

3,840

(1,487)

Other provisions(1) “Others” mainly comprises changes in the consolidation scope and foreign exchange rate effects.
(2) Previous year’s figures are adjusted due to revised IAS 19 and due to PPA adjustments of prior year’s acquisitions.

Deferred income taxes as of 31 December 2012 are related to the following assets and liabilities:

1 January 2012

Other movements

Movement throughincome statement(1)

R&D tax
credits

Deferredtax benefit(expense)

DeferredTax
assetsDeferredTaxliabilities

1

0

52

153

(423)

31 December 2012

DeferredTax
assetsDeferredTaxliabilities

OCI /IAS 19

27

(350)

0

Property, plant and equipment242(1,011)

0

(1)

0

12

381

(1,139)Investments and other long-term financial assets

257

(99)

(34)

(1)

0

85

313

(105)

Inventories

1,192

(74)

0

1

0

596

1,752

(37)

Receivables and other assets

229(1,900)786

00(1,341)102(2,328)

2

(5)

0

0

0

(5)

1

(9)

898

0

335

4

0

(90)

1,147

0

(In € million)

Intangible assets

Prepaid expenses
Provision for retirement plans(2)Other provisions(2)

Liabilities
Deferred income

Others

2,052

(176)

0

9

0

224

2,385

(276)

1,059

(560)

(1,377)

3

0

235

684

(1,324)

161

(3)

0

2

0

29

225

(36)

Net operating loss and tax credit carry forwards

2,280

0

0

(18)

47

74

2,383

0

Deferred tax assets / (liabilities)
before offsetting(2)8,399(4,178)

(290)

0

47

(129)

9,526

(5,677)

Valuation allowances on deferred tax assets

(939)

0

0

20

0

100

(819)

0

Set-off(3,135)

3,135

0

0

0

0

(4,175)

4,175

Net Deferred tax assets / (liabilities)(2)4,325(1,043)

(290)

20

47

(29)

4,532

(1,502)(1) “Others” mainly comprises changes in the consolidation scope and foreign exchange rate effects.
(2) Figures are adjusted due to revised IAS 19 and due to PPA adjustments of acquisitions in 2012.

42 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Consolidated Financial Statements (IFRS)
2.2 Notes to the Consolidated Income Statements

The amount of the Group’s deferred tax assets’ allowances is based
upon management’s estimate of the level of deferred tax assetsthat will be realised in the foreseeable future. In future periods,
depending upon the Group’s ﬁ nancial results, management’s
estimate of the amount of the deferred tax assets considered
realisable may change, and hence the write down of deferred
tax assets may increase or decrease. The Group has various
unresolved issues concerning open income tax years with the
tax authorities in a number of jurisdictions. The Group believes
that it has recorded adequate provisions for future income taxes
that may be owed for all open tax years.

Companies in deﬁcit situations in two or more subsequent years
recorded a total deferred tax asset balance of € 14 million (in 2012:€ 923 million). Assessments show that these deferred tax assets
will be recovered in future through either (i) own projected proﬁts,
or (ii) proﬁts of other companies integrated in the same ﬁscal group(régime d’intégration fiscale in France, steuerliche Organschaft inGermany) or (iii) via the “loss surrender-agreement” in Great Britain.

Deferred taxes on Net Operating Losses and Tax Credit carry forwards:

FranceGermany

Spain

UK

Other
countries

31 December
2013

31 December
2012

Net Operating Losses (NOL)

1,999

2,064

162

2,860

279

7,364

6,984

Trade tax loss carry forwards

0

2,219

0

0

0

2,219

2,013

(In € million)

0

0

368

0

1

369

383

760

641

417

572

57

2,447

2,383

(1)

(174)

(84)

(134)

(3)

(396)

(586)

759

467

333

438

54

2,051

1,797

Tax credit carry forwards

Tax effect
Valuation allowances

Deferred tax assets on NOLs
and tax credit carry forwards

NOLs, capital losses and trade tax loss carry forwards are indeﬁnitely usable in France, Germany and in Great Britain. In Spain, NOLs
and tax credit carry forwards expire after 18 years. The ﬁrst tranche of tax credit carry forwards (€ 1 million) will expire in 2021.
Roll forward of deferred taxes:(In € million)

Net deferred tax asset beginning of the year(1)
(1)

2013

2012

3,030

3,282

Deferred tax (expense) in income statement

(32)

(29)

Deferred tax recognised directly in AOCI (IAS 39)

(711)

(625)

Deferred tax on remeasurement of the net defined benefit liability(1)

20

335

Others(1)

46

67

2,353

3,030

2013

2012

Available-for-sale investments

(21)

(34)

Cash flow hedges

(540)

184

Remeasurement of the net defined benefit liability(1)

971

951

410

1,101

Net deferred tax asset at year end(1)(1) Previous year’s figures are adjusted due to revised IAS 19 and due to PPA adjustments of acquisitions in 2012.

Details of deferred taxes recognised cumulatively in total equity are as follows:(In € million)

Total

(1)

(1) Previous year’s figures are adjusted due to revised IAS 19.

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 43

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

2.3 Notes to the Consolidated Statementsof Financial Position
14. Intangible Assets
A schedule detailing gross values, accumulated depreciation and impairment and net values of intangible assets as of 31 December
2013 is as follows:

Cost
Balance at
Changes in
Balance at
1 January Exchange
consolidation
31 December
2013 differences Additions
scope Reclassification Disposals
2013(In € million)

Goodwill(1)12,191

(51)

0

11

0

0

Capitalised development costs

1,955

(8)

421

0

(42)

(3)

2,323

Other intangible assets(1)

2,729

(44)

230

10

108

(68)

2,965

16,875

(103)

651

21

66

(71)

17,439Total(1)12,151

Amortisation / Impairment
Balance at
Changes in
Balance at
1 January Exchange
consolidation
31 December
2013 differences Additions
scope Reclassification Disposals
2013(In € million)

Goodwill(1,174)

0

(15)

0

0

0

(1,189)

Capitalised development costs

(590)

4

(111)

0

0

0

(697)

Other intangible assets(1,682)

13

(281)

(3)

(10)

63

(1,900)(3,446)

17

(407)

(3)

(10)

63

(3,786)Total

Net Book Value(In € million)

Balance at
1 January
2013

Balance at
31 December
2013

Goodwill(1)11,017

10,962

Capitalised development costs

1,365

1,626

1,047

1,065

13,42913,653

Other intangible assets

Total

(1)

(1)

(1) Previous year’s figures are adjusted due to PPA adjustments of prior year’s acquisitions.

Additions to amortisation / impairment include impairment of capitalised development costs at Cassidian (€-12 million) and impairmentof other intangible assets (€-10 million) and of capitalised development costs (€-2 million) at Astrium.

44 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

A schedule detailing gross values, accumulated depreciation and impairment and net values of intangible assets as of 31 December
2012 is as follows:

Cost
Balance at
Changes in
1 January Exchange
consolidation2012 differences Additions
scope Reclassification Disposals(In € million)

Goodwill(1)11,965

4

Capitalised development costs

1,383

5

488

0

Other intangible assets(1)

2,523

5

306

51

15,871

14

799

264

5

Total

(1)

5

213

4

Balance at
31 December
2012

0

12,191

79

0

1,955

(78)

(78)

2,729

(78)

16,875

Balance at
Changes in
1 January Exchange
consolidation2012 differences Additions
scope Reclassification Disposals

Balance at
31 December
2012

Amortisation / Impairment(In € million)

Goodwill(1,153)

(4)

(17)

0

0

0

(1,174)

(418)

(1)

(171)

0

0

0

(590)

(1,514)

1

(243)

0

0

74

(1,682)(3,085)

(4)

(431)

0

0

74

(3,446)

Capitalised development costs
Other intangible assets

Total

Net Book Value(In € million)

Balance at
1 January
2012

Balance at
31 December
2012

Goodwill(1)10,812

11,017965

1,365

Capitalised development costs
Other intangible assets(1)

Total(1)

1,009

1,047

12,786

13,429(1) 2012 figures are adjusted due to 2013 PPA adjustments of acquisitions made in 2012.

Additions to amortisation / impairment of capitalised development costs and other intangible assets are mainly accounted for in costof sales.

Goodwill Impairment Tests
The Group performed goodwill impairment tests in the fourth quarter of the ﬁnancial year on Cash Generating Unit (CGU) level where
goodwill is allocated to.
As of 31 December 2013 and 2012, goodwill was allocated to CGUs, which is summarised in the following schedule on segment level:(In € million)

AirbusCommercial

AirbusMilitary

Eurocopter

Astrium

Others /Cassidian HQ / Conso.

Consolidated

Goodwill as of 31 December 2013

6,680

12

302

1,235

2,720

13

10,962

Goodwill as of 31 December 2012

6,670

12

323

1,236

2,711

65(1)

11,017(1)(1) 2012 figures are adjusted due to 2013 PPA adjustments of acquisitions made in 2012.

The Astrium CGUs consist of Astrium Satellites (allocated goodwill
2013: € 276 million), Astrium Space Transportation (allocatedgoodwill 2013: € 273 million) and Astrium Services (allocatedgoodwill 2013: € 685 million). Cassidian consists of two CGUs
including MBDA with a goodwill of € 658 million.

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

General Assumptions Appliedin the Planning Process
The discounted cash ﬂow method has been applied as a primaryvaluation approach to determine the value in use of the CGUs.
Generally, cash ﬂow projections used for the Group’s impairment
testing are based on operative planning.
The operative planning – approved by the Board of Directors on
17 December 2013 – takes into account general economic data
derived from external macroeconomic and ﬁnancial studies. The
operative planning assumptions reﬂect for the periods under review
speciﬁc inﬂation rates and future labour expenses in the European
countries where the major production facilities are located.
Regarding the expected future labour expenses, an increase of
2% was implied. In addition, future interest rates are also projected
per geographical market, for the European Monetary Union, GreatBritain and the USA.
The Group follows an active policy of foreign exchange risk
hedging. As of 31 December 2013, the total hedge portfolio withmaturities up to 2020 amounts to US$76 billion and covers amajor portion of the foreign exchange exposure expected overthe period of the operative planning (2014 to 2018). The averageUS$/€ hedge rate of the US$/€ hedge portfolio until 2020 amounts
to 1.34 US$/€ and for the US$/GBP hedge portfolio until 2019
amounts to 1.57 US$/GBP. For the determination of the operativeplanning in the CGUs management assumed future exchange
rates of 1.35 US$/€ from 2014 onwards to convert in € the portionof future US$ which are not hedged. Foreign exchange exposure
arises mostly from Airbus Commercial and to a lesser extent fromthe other EADS segments.
The assumption for the perpetuity growth rate used to calculate theterminal values as of 31 December 2012 has been determined with
1% (previous year: 1%). This assumption is lower than experienced
in past economic cycles in order to reﬂect current uncertainty
regarding market developments in the long-term.
The main assumptions and the total of the recoverable amounts
obtained have been compared for reasonableness to market data.
Key assumptions on which management has based its
determination of value in use include amongst others, weighted
average cost of capital and estimated growth rates as well as theunderlying foreign exchange rates. These estimates, including themethodology used, can have a material impact on the respective
values and hence are subject to uncertainties.

Airbus Commercial
The goodwill allocated to Airbus Commercial mainly relates to thecreation of the Group in 2000 and the Airbus Combination in 2001.
The assessment was based on the following key specificassumptions, which represent management’s current best
assessment as of the date of these Consolidated Financial
Statements:¬ projected cash ﬂows for the next ﬁve years were presented to
the Group’s Board of Directors in the frame of the operativeplan. This planning scenario takes into account the decision

46 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

to ramp-up the production of the A320 programme to 42+ a/c,
and to stay with the Long Range-programme at 10 a/c and
the A380-programme at 2.7 a/c. In the absence of long-term
ﬁnancial reference, expected cash ﬂows generated beyond theplanning horizon are considered through a terminal value. The
terminal value reﬂects management’s assessment of a normative
operating year based on an outlook of a full aeronautic cycle
over the next decade;¬ long-term commercial assumptions are based on General
Market Forecast updated in 2013. The development of market
share per segment considers enlargement of the competitionas per current best assessment. Current market evolutions are
considered through sensitivities;¬ cash ﬂows are discounted using a euro weighted average costof capital pre-tax (WACC) of 10.1% (in 2012: 10.2%);¬ carrying value as well as planned cash ﬂows include impacts
from the existing hedge portfolio.
With regard to the assessment of the value in use for the CGU
Airbus Commercial, management believes that the likelihood ofa change in the above key assumptions to an extent that would
cause the recoverable amount to fall below the carrying value
is remote.
The recoverable amount is particularly sensitive to the following
areas:¬ change of the euro against the US$ (reference scenario at
1.35 US$/€ ): A change by 10 cents, + or - would not imply an
impairment charge in the Group’s accounts;¬ change of the WACC: An increase of 50 basis points in the WACC
would not imply an impairment charge in Group accounts.
The current positive difference between the recoverable value
and the carrying value of Airbus Commercial’s net assets
indicates that the assessed (negative) impacts of the sum ofthese sensitivities would not imply an impairment charge in Groupaccounts.

Airbus Military
For impairment testing purposes, the cash flows have been
discounted using a weighted average cost of capital pre-tax(WACC) of 8.7% (in 2012: 8.3%).
A400M launch order from OCCAR is included as per assumptions
used for the preparation of these Consolidated Financial Statements.
A400M is based on the contract amendment negotiations with
OCCAR and the seven A400M launch customer nations ﬁnalisedon 7 April 2011.
This is the reference for projected cash ﬂows for the next ﬁve years.
Expected cash ﬂows generated beyond the planning horizon are
considered through a terminal value. The terminal value reﬂects
management’s assessment of a normative operating year.
Value in use of the CGU Airbus Military is above carrying value,indicating no goodwill impairment for 2013 and 2012.

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

Other Cash Generating Units
In order to reﬂect the different underlying business risks, a segment
speciﬁc WACC factor has been applied. For Eurocopter the cash
ﬂows were discounted using a weighted average cost of capital
pre-tax (WACC) of 9.5% (in 2012: 9.5%), whereas Cassidian applieda weighted average cost of capital pre-tax (WACC) of 8.7% (in 2012:8.3%) and Astrium applied a pre-tax WACC of 9.6% (in 2012: 9.5%).
Cash ﬂow projections are based on operative planning covering aﬁve-year planning period.
The strong order book of Eurocopter as of 31 December 2013
supports the increasing revenues, which are assumed for theDivision over the operative planning period despite heavy
competition on the civil and military markets. This is driven by
further key orders from global markets for Commercial Helicopter
Business and Governmental Programmes. Any signiﬁcant market
opportunities on military contract that will be secured will represent
additional upsides and will strongly contribute to further growthand proﬁtability of Eurocopter. Main key achievements in 2013
are the deliveries of NH90 in Europe (Sweden, Greece, Italy,
Belgium, Finland, Germany), Ecureuil in the U.S.A. and Super
Puma throughout the world. Following continued efforts for
globalisation and product renewal, the Division continuously
expects an increasing performance over the next years thanks toa renewed range planned for entry-into-service and cost efﬁciency
on key programmes.
The strong order book of the Cassidian Division as of 31 December
2013 supports the stable revenues, which are assumed for this
Division over the operative planning period despite continuing
unfavourable conditions on the domestic markets. This is driven
by further key orders from global markets for Euroﬁghter, Security
and Communication Solutions, Integrated Systems, Electronic
Warfare and Radar business. Main key achievements in 2013 arethe Meteor Integration for Euroﬁghter, Missiles Orders in MBDA,
Air Surveillance Canada and Tetra in Saudi Arabia. Cassidian
successfully stabilised key programmes and implemented a fully
integrated organisation. Following continued efforts for globalisation
and a review of the product portfolio focusing on proﬁtability, theDivision continuously expects a strong and increasing performanceover the operative planning period thanks to the investment in new
products and maturing cost efﬁciency programmes.
The strong order book of the Astrium Division as of 31 December
2013 (including satellites, launchers, ballistic missiles and military
telecom services) supports the positive revenue development
which is assumed for this Division over the operative planning
period. Main key achievements in 2013 are the successful launchof 6 Astrium-built satellites, including 3 telecommunication

satellites and 3 Earth observation, navigation and sciences
satellites, 4 successful Ariane 5 launches, the successful missionof the third Automated Transfer Vehicle spacecraft, a contract
with Arianespace to start the production of 18 additional heavylift Ariane 5 ECA launchers, an ESA order for next development
step of A5 ME and the award of 3 export telecommunications
satellites. Based on these achievements, the planning period ischaracterised by further order intake in home countries and export
market in established key areas (e.g. M51, Ariane 5 production,
Ariane 5 ME & Ariane 6, MPCV, telecom and Earth observation
satellites), as well as business development in telecom services
and Earth observation services. The operating margin and theFree Cash Flow are planned to increase, supported by existingprocess improvement programmes.
The recoverable amounts of all CGU’s in Cassidian, Astrium andEurocopter have exceeded their carrying amounts, indicating no
goodwill impairment for 2013 and 2012.
With regard to the assessment of the value in use for the cash
generating units mentioned above, the variation of the key
assumptions in a reasonable range would not cause the recoverable
amount to fall below the carrying value.
The goodwill of Others / HQ / Conso. partly relates to the CGU
EADS North America reﬂ ecting the business activities in the
US. For impairment testing purposes in 2013, the recoverable
amount has been the fair value less cost of disposal assessed
based on an offer received for the Test and Services activitiesof € 38 million. The sales price is a result of negotiations and thefair value measurement thus based on level 1 inputs. The annual
impairment test resulted in an impairment charge of € 15 million
in 2013. In 2012, the recoverable amount has been based on avalue in use concept, the cash ﬂows have been discounted using
a weighted average cost of capital pre-tax (WACC) 8.5% resulting
in an impairment charge of € 17 million.

Development Costs
The Group has capitalised development costs in the amountof € 1,626 million as of 31 December 2013 (€ 1,365 million as of
31 December 2012) as internally generated intangible assets mainly
for the Airbus A380 and A350 XWB programme. The amortisation
for the A380 programme development costs is performed on aunit of production basis. Capitalisation for development costs of
the A350 XWB programme started in the second quarter 2012
when the ﬁrst aircraft entered the ﬁnal assembly line. Since 1 April
2012, a total amount of € 720 million was capitalised.

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 47

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

15. Property, Plant and Equipment
Schedules detailing gross values, accumulated depreciation and impairment and net values of property, plant and equipment show
the following as of 31 December 2013:

Cost(In € million)

Balance at
Changes in
Balance at
1 January Exchange
consolidation
31 December
2013 differences Additions
scope Reclassification Disposals
2013

Land, leasehold improvements
and buildings including buildings
on land owned by others

8,542

(37)

225

0

320

(135)

8,915

Technical equipment
and machinery

15,293

(112)

425

4

1,279

(138)

16,751Other equipment, factoryand office equipment

3,846

(61)

351

(2)

1,105

(720)

4,519

Construction in progress

3,441

(27)

1,477

0

(2,538)

(3)

2,350

31,122

(237)

2,478

2

166

(996)

32,535

Total

Depreciation / Impairment(In € million)

Balance at
Changes in
Balance at
1 January Exchange
consolidation
31 December
2013 differences Additions
scope Reclassification Disposals
2013

Land, leasehold improvements
and buildings including buildings
on land owned by others(3,909)

12

(297)

0

31

101

(4,062)

Technical equipment
and machinery(9,422)

69

(903)

(1)

620

122

(9,515)

Other equipment, factoryand office equipment(2,595)

30

(317)

1

(665)

444

(3,102)

Construction in progress

0

0

0

0

0

0

0

(15,926)

111(1,517)

0

(14)

667

(16,679)

Total

Net Book Value
Balance at
1 January
2013

Balance at
31 December
2013

Land, leasehold improvements
and buildings including buildings
on land owned by others

4,633

4,853

Technical equipment andmachinery

5,871

7,236

(In € million)

Other equipment, factory andoffice equipment

1,251

1,417

Construction in progress

3,441

2,350

15,19615,856

Total

Additions to depreciation / impairment include impairment of other equipment (€-20 million) at Airbus Commercial and of technicalequipment and machinery at Astrium (€-2 million).

48 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

Schedules detailing gross values, accumulated depreciation and impairment and net values of property, plant and equipment show
the following as of 31 December 2012:

Cost(In € million)

Balance at
Changes in
1 January Exchange
consolidation2012 differences Additions
scope Reclassification Disposals

Balance at
31 December
2012

Land, leasehold improvements
and buildings including buildings
on land owned by others

8,044

14

321

44

149

(30)

8,542

Technical equipment
and machinery

13,376

86

366

24

1,558

(117)

15,293

Other equipment, factoryand office equipment

3,882

(22)

567

(29)

(126)

(426)

3,846

Construction in progress

Total

3,011

12

1,586

3

(1,141)

(30)

3,441

28,313

90

2,840

42

440

(603)

31,122

Balance at
Changes in
1 January Exchange
consolidation2012 differences Additions
scope Reclassification Disposals

Balance at
31 December
2012

Depreciation / Impairment(In € million)

Land, leasehold improvements
and buildings including buildings
on land owned by others(3,547)

(3)

(339)

0

(30)

10

(3,909)Technical equipment
and machinery(8,145)

(54)

(883)

0

(456)

116

(9,422)Other equipment, factoryand office equipment(2,475)

10

(399)

0

79

190

(2,595)Construction in progress

0

0

0

0

0

0

0

(14,167)(47)(1,621)

0

(407)

316

(15,926)

Total

Net Book Value
Balance at
1 January
2012

Balance at
31 December
2012

Land, leasehold improvements
and buildings including buildings
on land owned by others

4,497

4,633

Technical equipment
and machinery

5,231

5,871

Other equipment, factoryand office equipment

1,407

1,251

Construction in progress

3,011

3,441

14,14615,196(In € million)

Total

Additions to amortisation / impairment of capitalised development costs and other intangible assets are mainly accounted for in costof sales.

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 49

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

Property, plant and equipment include at 31 December 2013
and 2012, buildings, technical equipment and other equipment
accounted for in ﬁxed assets under ﬁnance lease agreements for
net amounts of € 146 million and € 148 million, net of accumulated
depreciation of € 91 million and € 74 million. The related depreciation
expense for 2013 was € 13 million (2012: € 14 million; 2011:€ 11 million).

Other equipment, factory and office equipment include thenet book value of “aircraft under operating lease” for € 422 millionand € 576 million as of 31 December 2013 and 2012, respectively;
related accumulated depreciation is € 398 million and € 720 million.
Depreciation expense for 2013 amounts to € 50 million (2012:€ 52 million; 2011: € 59 million).

The “aircraft under operating lease” include:i)Group’s sales finance activity in the form of aircraft which have been leased out to customers and are classified as operating leases:
They are reported net of the accumulated impairments. These sales financing transactions are generally secured by the underlying
aircraft used as collateral (see Note 33 “Commitments and contingencies” for details on sales financing transactions).

The corresponding non-cancellable future operating lease payments (not discounted) due from customers to be included in revenues,
at 31 December 2013 are as follows:(In € million)

Not later than 201475

Later than 2014 and not later than 2018159

Later than 2018

46

Total
ii)

Aircraft which have been accounted as “operating lease”
because they were sold under terms that include asset
value guarantee commitments with the present value of theguarantee being more than 10% of the aircraft’s sales price(assumed to be the fair value). Upon the initial sale of theseaircraft to the customer, their total cost previously recognised

280
in inventory is transferred to “Other equipment, factory andoffice equipment” and depreciated over its estimated useful
economic life, with the proceeds received from the customer
being recorded as deferred income (see Note 30 “Deferredincome”).

The total net book values of aircraft under operating lease are as follows:
31 December(In € million)(i) Net book value of aircraft under operating lease before impairment charge
Accumulated impairment
Net book value of aircraft under operating lease(ii) Aircraft under operating lease with the present value of the guarantee being more than 10%

Total Net Book value of aircraft under operating lease

2013

2012

591

693

(169)

(223)

422

470

0

106

422

576

For details please refer to Note 33 “Commitments and contingencies”.
Contractual commitments for purchases of “Land, leasehold improvements and buildings including buildings on land owned by others”
amount to € 345 million as of 31 December 2013 compared to 2012 of € 346 million.

50 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

16. Investment Property
The Group owns investment property that is leased to third parties. Buildings held as investment property are depreciated on a linear
basis over their useful life up to 20 years. The values assigned to investment property are as follows:(In € million)

Book value of Investment Property

Historicalcost

Accumulated
depreciation
31 December
2012

211

(139)

As of 31 December 2013, the fair value of the Group’s investment
property amounts to € 83 million (in 2012: € 79 million). For the
purposes of IAS 40 “Investment property”, the fair values havebeen determined by using external appraisal reports or usingBook value
31 December Depreciation /2012
amortisation
72

Accumulated
depreciation
31 December
2013

Book value
31 December
2013

(142)

69

(3)

discounted cash ﬂ ow projections for estimated rental income
less rental expenses. Related rental income in 2013 is € 9 million(in 2012: € 8 million) with direct operating expenses amounting to€ 2 million (in 2012: € 1 million).

17. Investments in Associates Accounted for Under the Equity Method,
Other Investments and Other Long-Term Financial Assets
The following table sets forth the composition of investments in associates accounted for under the equity method, other investments
and other long-term ﬁnancial assets:
31 December(In € million)

2013

2012

Investments in associates accounted for under the equity method

2,902

2,662

611

596

Non-current other investments and other long-term financial assets
Other investments
Other long-term financial assets

1,253

1,519

Total non-current other investments and other long-term financial assets

1,864

2,115

181

287

Current portion of other long-term financial assets
Investments in associates accounted for under the equity method
as of 31 December 2013 and 2012, mainly comprise the Group’s
interest in Dassault Aviation (46.32% at 31 December 2013 and2012) of € 2,747 million and € 2,519 million. Since for the second
half-year 2013 no published ﬁnancial information is available yetfrom Dassault Aviation at the date of authorisation for issue of2013 ﬁnancial statements, the Group used a best estimate for the
net income of the second half year 2013 of Dassault Aviation. The
equity investment in Dassault Aviation includes an IFRS catch-up
adjustment for income and other comprehensive income relating
to prior period. The 30 June 2013 equity components have beenused to estimate the 2013 year-end consolidated equity positionof Dassault Aviation.

Since for the second half-year 2012 no ﬁnancial information wasavailable from Dassault Aviation at the date of authorisation for issueof 2012 ﬁnancial statements, the Group used a best estimate for the
net income of the second half year 2012 of Dassault Aviation. The
equity investment in Dassault Aviation included an IFRS catch-up
adjustment for income and other comprehensive income relating
to prior period. The 30 June 2012 equity components have beenused to estimate the 2012 year-end consolidated equity positionof Dassault Aviation.
The Group’s 46.32% interest in Dassault Aviation’s market
capitalisation, derived from an observable free ﬂ oat of 3.5%,
amounts to € 4,352 million as of 31 December 2013 (as of
31 December 2012: € 3,490 million).

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 51

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2.3 Notes to the Consolidated Statements of Financial Position

The following table reﬂects summarised most recent published proportionate ﬁnancial information of Dassault Aviation in which theGroup holds 46.32%:

30 June 201331 December 2012

Non-current assets

2,524

2,594

Current assets

2,338

2,219

(In € million)

Share of the associate’s financial position:

112

122

Current liabilities

2,530

2,492

Total equity

2,220

2,199

6 months

12 months

Revenues

846

1,826

Net Income

62

233

(In € million)

31 December 201331 December 2012

2,747

2,519

Non-current liabilities

Share of the associate’s revenues and profit:

Carrying amount of the investment at 31 December

Further signiﬁcant associates, being accounted for under the equity method (like Air Tanker, Daher-Socata SA, Patria Oyi, United
Monolithic Semiconductors and ESG), are stated in aggregate in the following table:(In € million)

31 December 201331 December 2012

1,338

1,271

291

256

1,283

1,344

Share of the associate’s financial position:
Non-current assets
Current assets
Non-current liabilities
Current liabilities

265

285

Total equity

81

(102)

12 months

12 months

Revenues

Share of the associate’s revenues and profit:

547

551

Net Income

40

38(In € million)

31 December 201331 December 2012

135

125

Carrying amount of the investments

The cumulative unrecognised comprehensive loss in 2013 amounts
to €-55 million (thereof €+171 million for the period).
A list of major investments in associates and the proportion ofownership is included in Appendix “Information on principal
investments”.
Other investments mainly comprise the Group’s participations,the most signiﬁcant being at 31 December 2013 the participations
in CARMAT SAS (Group share: 27.3% (2012: 30.7%)) amounting
to € 136 million (2012: € 161 million) and AviChina (Group share:
5.0%) amounting to € 116 million (2012: € 92 million).

52 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

Other long-term financial assets of € 1,253 million (2012:€ 1,519 million) and the current portion of other long-term
financial assets of € 181 million (in 2012: € 287 million) encompass
other loans in the amount of € 769 million and € 863 million asof 31 December 2013 and 2012, available-for-sale securities forpart time retirement and deferred compensation amounting to€ 0 million and € 203 million as of 31 December 2013 and 2012
and the Group’s sales ﬁnance activities in the form of ﬁnance leasereceivables and loans from aircraft ﬁnancing. They are reported netof accumulated impairments. These sales ﬁnancing transactions
are generally secured by the underlying aircraft used as collateral(see Note 33 “Commitments and contingencies” for details onsales ﬁnancing transactions).

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2.3 Notes to the Consolidated Statements of Financial Position

Loans from aircraft ﬁnancing are provided to customers to ﬁnance the sale of aircraft. These loans are long-term and normally have amaturity which is linked to the use of the aircraft by the customer. The calculation of the net book value is:
31 December(In € million)

2013

2012

Outstanding gross amount of loans to customers

405

424

Accumulated impairment

(70)

(60)

Total net book value of loans

335

364

Finance lease receivables from aircraft ﬁnancing are as follows:
31 December

2013

2012

Minimum lease payments receivables

404

462

(In € million)

Unearned finance income

(20)

(14)

Accumulated impairment

(54)

(72)

Total net book value of finance lease receivables

330

376

Future minimum lease payments from investments in ﬁnance leases to be received are as follows (not discounted):(In € million)

Not later than 2014

145

Later than 2014 and not later than 2018

121

Later than 2018

138

Total

404

18. Inventories
Inventories at 31 December 2013 and 2012 consist of the following:
31 December(In € million)

2013

2012

Raw materials and manufacturing supplies

2,650

2,397

Work in progress

16,771

15,464

Finished goods and parts for resale

2,119

1,888

Advance payments to suppliers

Total
The increase in work in progress of €+1,307 million is mainly driven
by Airbus Commercial and Eurocopter programmes, partly offset
by Cassidian programmes. Raw materials were built-up at Airbus
and at Eurocopter. Finished goods and parts for resale increased
at Airbus and at Eurocopter.
The ﬁ nished goods and parts for resale before write down to
net realisable value amount to € 2,817 million in 2013 (2012:€ 2,481 million) and work in progress before write down to net
realisable value amounts to € 19,756 million (2012: € 17,599 million).

3,520

3,467

25,06023,216

Write downs for ﬁnished goods and services are recorded when it
becomes probable that total estimated contract costs will exceed
total contract revenues. In 2013, write downs of inventories in theamount of €-389 million (2012: €-368 million) are recognised in Costof Sales, whereas reversal of write downs amounts to € 69 million(2012: € 80 million). At 31 December 2013 € 5,127 million of work inprogress and € 1,563 million of ﬁnished goods and parts for resale
were carried at net realisable value.

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

19. Trade Receivables
Trade receivables at 31 December 2013 and 2012 consist of the following:
31 December(In € million)

2013

2012

Receivables from sales of goods and services(1)

7,581

7,136

Allowance for doubtful accounts

Total

(342)

(348)

7,239

6,788

(1) Previous year’s figure is adjusted due to PPA adjustments of prior year’s acquisitions.

The trade receivables increase by €+451 million mainly causedby Airbus (€+479 million), partly compensated by a decrease at
Cassidian (€-50 million).

The aggregate amount of costs incurred and recognised profits(less recognised losses) to date amounts to € 63,946 million
comparable to € 58,206 million at year-end 2012.

Trade receivables are classified as current assets. As of
31 December 2013 and 2012, respectively, € 1,582 million and€ 1,407 million of trade receivables are not expected to be collected
within one year.

The gross amount due from customers for construction work
amounts to € 4,755 million (in 2012: € 3,746 million) and relates
to construction contracts where incurred contract costs plus
recognised proﬁ ts less the sum of recognised losses exceed
progress billings.

In application of the percentage of completion (PoC) method,
as of 31 December 2013 an amount of € 2,427 million (in 2012:€ 1,946 million) for construction contracts is included in the tradereceivables net of related advance payments received.

The gross amount due to customers amounts to € 1,030 million(in 2012: € 1,190 million) and corresponds to the construction
contracts whose total of incurred contract costs plus recognised
proﬁts less the sum of recognised losses and progress billings
is negative.

The respective movement in the allowance for doubtful accounts in respect of trade receivables during the year was as follows:(In € million)

2013

2012

Allowance balance at 1 January

(348)

(366)

Foreign currency translation adjustment

10

Utilisations / disposals

25

10(Additions) / release

(20)

8

31 December

(342)

(348)

Based on historic default rates, the Group believes that no allowance for doubtful accounts is necessary in respect of trade receivables
not past due in the amount of € 5,598 million (in 2012: € 4,776 million).

54 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

20. Other Financial Assets
Other ﬁnancial assets at 31 December 2013 and 2012 consist of the following:
31 December(In € million)

2013

2012

1,993

1,197

Non-current other financial assets
Positive fair values of derivative financial instruments
Option premiums

041

Others

83

148

Total

2,076

1,386

Positive fair values of derivative financial instruments

717

321

Receivables from related companies

558

757

2

31

Current other financial assets

Loans
Others

280

339

Total

1,557

1,448

21. Other Assets
Other assets at 31 December 2013 and 2012 consist of the following:
31 December(In € million)

2013

2012

Non-current other assets
1,480

1,223

Others

Prepaid expenses

173

192

Total

1,653

1,415

Value added tax claims

1,151

1,001

Prepaid expenses

442

586

Others

481

459

Total

2,074

2,046

Current other assets

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 55

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

22. Securities
The Group’s security portfolio amounts to € 6,890 million and€ 8,315 million as of 31 December 2013 and 2012, respectively.
The security portfolio contains a non-current portion of availablefor-sale-securities of € 4,296 million (in 2012: € 5,978 million) andsecurities designated at fair value through proﬁt and loss of € 4 million(in 2012: € 9 million) as well as a current portion of available-forsale-securities of € 2,590 million (in 2012: € 2,328 million).
Included in the securities portfolio as of 31 December 2013 and2012, respectively, are corporate and government bonds bearing
either ﬁxed rate coupons (€ 6,374 million nominal value; comparably

in 2012: € 7,400 million) or ﬂoating rate coupons (€ 387 million
nominal value; comparably in 2012: € 563 million) and foreign
currency Funds of Hedge Funds (€ 8 million nominal value; 2012:€ 14 million).
When the Group enters into securities lending activities, thesecurities pledged as collateral continue to be recognised on thebalance sheet. The carrying amount of such securities pledged
as of 31 December 2013, including accrued coupon interest, was€ 613 million (2012: € 0 million).

23. Total Equity
The following table shows the development of the number of shares outstanding:(In number of shares)

Issued as at 1 January
Issued for ESOP
Issued for exercised options
Cancelled

Issued as at 31 December
Treasury shares as at 31 December

Outstanding as at 31 December
EADS’ shares are exclusively ordinary shares with a parvalue of € 1.00. The authorised share capital consists of
3,000,000,000 shares.
On 27 March 2013, the Extraordinary General Meeting of theCompany authorised the Board of Directors for an 18-month period
to repurchase up to 15% of the Company’s issued and outstanding
share capital (i.e. issued share capital excluding shares held by theCompany or its subsidiaries), by any means, including derivative
products, on any stock exchange, in a private purchase, by wayof a public purchase offer or otherwise, at a price no less than
the nominal value and at most € 50 per share (the “share buyback
programme”).
The Extraordinary General Meeting authorise d both the Boardof Directors and the Chief Executive Ofﬁ cer, with powers of
substitution, that the number of shares repurchased by theCompany pursuant to the share buyback programme arecancelled (whether or not in tranches). As per decisions of the
Chief Financial Ofﬁcer upon delegation of the Chief Executive
Ofﬁcer, on 20 June 2013, 47,648,691 shares and on 27 September
2013, 3,099,657 shares have been cancelled. The equity of theCompany was reduced by an amount of € 1,915 million due to theshare buy-back programme.

56 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

2013

2012

827,367,945

820,482,291

2,113,245

2,177,103

6,873,677

5,261,784(53,197,232)(553,233)

783,157,635

827,367,945(2,835,121)(5,226,305)

780,322,514

822,141,640

On 29 May 2013, the Shareholders’ General Meeting of EADS
renewed the authorisation given to the Board of Directors to issue
shares and to grant rights to subscribe for shares in the Company’s
share capital, provided that such powers will be limited to 0.15% of
the Company’s authorised capital from time to time and to limit or
exclude preferential subscription rights, in both cases for a period
expiring at the Shareholders’ General Meeting to be held in 2014.
The mentioned powers include without limitation the approvaland implementation of share-related Long-Term Incentive Plans(such as stock option, performance and restricted share plans)and employee share ownership plans. Such powers include thegranting of rights to subscribe for shares which can be exercised
at such time as may be speciﬁed in or pursuant to such plans
and the issue of shares to be paid up from freely distributablereserves. However, such powers shall not extend to issuing sharesor granting rights to subscribe for shares in respect of which there
is no preferential subscription right (by virtue of Dutch law, or
because it has been excluded by means of a resolution of thecompetent corporate body), for an aggregate issue price in excessof € 500 million per share issuance.
The Shareholders’ General Meeting on 29 May 2013 renewed
the authorisation given to the Board of Directors for a new periodof 18 months from the date of the Annual General Meeting to

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

repurchase shares of the Company, by any means, including
derivative products, on any stock exchange or otherwise, as longas, upon such repurchase, the Company will not hold more than
10% of the Company’s issued share capital and at a price not lessthan the nominal value and not more than the higher of the priceof the last independent trade and the highest current independent
bid on the trading venues of the regulated market of the country inwhich the purchase is carried out. This authorisation (i) supersedes
and replaces the authorisation given by the Annual General Meetingof 31 May 2012 and (ii) is in addition, and without prejudice, to therepurchase authorisation granted by the Extraordinary General
Meeting held on 27 March 2013.
Furthermore, the Shareholders’ General Meeting authorised boththe Board of Directors and the Chief Executive Ofﬁcer, with powersof substitution, to cancel up to a maximum of 2,448,884 shares.
As per decision of the Chief Financial Ofﬁcer upon delegation of
the Chief Executive Ofﬁcer, on 27 September 2013, 2,448,884
shares have been cancelled.

On 29 May 2013, the Shareholders’ General Meeting decided
to add the net proﬁ t of the ﬁ scal year 2012 of € 1,228 million(before IAS 19 adjustments) to retained earnings. It also decided
to distribute a gross amount of € 0.60 per share, which was paidon 5 June 2013. For the ﬁscal year 2013, the Group’s Board of
Directors proposes a cash distribution payment of € 0.75 per share.
Capital stock comprises the nominal amount of shares outstanding.
The addition to capital stock represents the contribution for exercised
options of € 6,873,677 (in 2012: € 5,261,784) in compliance with theimplemented stock option plans and by employees of € 2,113,245(in 2012: € 2,177,103) under the Employee Stock Ownership Plans.
Share premium mainly results from contributions in kind in thecourse of the creation of EADS, cash contributions from theInitial Public Offering, capital increases and reductions due to theissuance and cancellation of shares as well as cash distributions
to EADS N.V. shareholders. In 2013, € 8 million are reclassiﬁed
from currency translation adjustments to proﬁt or loss. Treasury
shares represent the amount paid for own shares held in treasury.

24. Capital Management
The Group seeks to maintain a strong ﬁnancial proﬁle to safeguard
its going concern, ﬁnancial ﬂexibility as well as shareholders’ andother stakeholders’ confidence in the Group. Consequently,
operating liquidity is of great importance.

Among other indicators, the Group uses a Value Based Management
approach in order to guide the Company towards sustainable value
creation by generating ﬁnancial returns above the cost of capital.
The key elements of the Value Based Management concept are:As part of its capital management, it is one of the Group’s objectives
to maintain a strong credit rating by institutional rating agencies.
This enables EADS to contain the Group’s cost of capital which
positively impacts its stakeholder value (entity value). Next to otheralso non-ﬁnancial parameters, the credit rating is based on factors
such as capital ratios, cash ﬂow ratios, proﬁtability and liquidity
ratios. The Group focuses on keeping them in a preferable range.

¬ the deﬁnition of ﬁnancial returns;¬ the deﬁnition of the Company’s capital base; and¬ the measurement of value creation derived from the two above.

On 6 September 2013, Standard & Poor’s upgraded EADS’ LongTerm Rating to A from A-, with a stable outlook. EADS’ short-term
rating with Standard & Poor’s stands at A1 following an upgradefrom A2 on 2 October 2012.
EADS’ Base Credit Assessment (BCA) with Moody’s InvestorsServices currently stands at A3 following an upgrade from Baa1 on
20 November 2012. EADS’ Government Related Issuer (GRI) rating
currently stands at A2 following a notching down of the government
support uplift on 20 November 2012 as a result of the announced
change in the Group’s governance and shareholding structure.
On 29 October 2013, Fitch Ratings upgraded the Group’s Longterm rating unsolicited to A- from BBB+, with a stable outlook.
The upgrades of the Group’s stand-alone ratings mainly reﬂect
key progresses made on the A350 XWB programme and Groupmanagement’s strong focus towards proﬁtability enhancement.
In accordance with its conservative ﬁnancial policy it is essential
for the Group to maintain a strong investment grade rating.

The Group uses Return on Capital Employed (RoCE) to measure
the value created by ﬁnancial returns relative to its capital base.
RoCE, as deﬁned by the Group, uses EBIT pre-goodwill impairment
and exceptionals for the numerator and Average Capital Employed
for the denominator. The Average Capital Employed for the Group is
deﬁned as the average of the annual opening and closing positionsof Fixed Assets plus Net Operating Working Capital plus operating
cash less Other Provisions.
Financial value is created if proﬁts relative to the Group’s Capital
Employed exceed the company’s cost of the capital. Value can bemeasured by comparing RoCE to the pre-tax Weighted Average
Cost of Capital (WACC). A ﬁ ve year plan for a value creation
ambition is constructed annually, and is composed of (1) RoCE, (2)EBIT pre-goodwill impairment and exceptionals, and (3) Free CashFlow, which is deﬁned as Cash provided by operating activities andCash used for investing activities less Change of securities andContribution to plan assets for pensions. The Company’s longterm aspiration is to reach the ﬁrst quartile of RoCE performance
among our aerospace and defence peers.
The Group also monitors the level of dividends paid to its
shareholders.

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 57

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2.3 Notes to the Consolidated Statements of Financial Position

The Group generally satisﬁes its obligations arising from sharebased payment plans by issuing new shares. In order to avoid
any dilution of its current shareholders out of these share-based
payment plans, the Group has accordingly decided to buy backand cancel its own shares following the decisions of the Board of

Directors and approval of the Annual General Meeting. Apart fromthis purpose, the Group generally does not trade with treasury
shares.
The Group complies with the capital requirements under applicablelaw and its Articles of Association.

25. Provisions
Provisions are comprised of the following:
31 December(In € million)

2013

2012

Provision for retirement plans (see Note 25b)(1)

6,138

6,024

Provision for deferred compensation (see Note 25a)

477

447

Retirement plans and similar obligations(1)

6,615

6,471

Other provisions (see Note 25c)(1)

8,754

9,418

Total(1)15,36915,889Thereof non-current portion(1)10,046

9,850

Thereof current portion

5,323

6,039

(1) Previous year’s figures are adjusted due to revised IAS 19 and due to PPA adjustments of prior year’s acquisitions.

As of 31 December 2013 and 2012, respectively, € 6,209 million and € 6,159(1) million of retirement plans and similar obligations and€ 3,837 million and € 3,691(1) million of other provisions mature after more than one year.

a) Provisions for Deferred Compensation
This amount represents obligations that arise if employees elect to convert part of their remuneration or bonus into an equivalentcommitment for deferred compensation which is treated as a deﬁned beneﬁt post-employment plan. The development for the deﬁned
beneﬁt obligation and plan assets is as follows:
CHANGE IN DEFINED BENEFIT OBLIGATIONS

2013

2012

447

358

Service cost

54

35

Interest cost

16

15

¬ from changes in financial assumptions

1027¬ from changes in experience adjustments

29

18

Transfer and change in consolidation

(8)

(4)

Benefits paid

(2)

(2)

546

447

2013

2012

0

0

Additions (Reclassification)

73

0Interest income from plan assets

20(In € million)

Defined benefit obligations as of 1 January

Remeasurements: Actuarial (gains) and losses arising

Defined benefit obligations as of 31 December
CHANGE IN PLAN ASSETS(In € million)

Fair value of plan assets as of 1 January

Remeasurement of plan assets

Fair value of plan assets as of 31 December

58 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

(1)

0

74

0

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2.3 Notes to the Consolidated Statements of Financial Position

RECOGNISED AS…
(In € million)

2013

2012

Provision

477

447

Other non-current and current assets

Total
The portion of the obligation, which is not protected by the pension
guarantee association or PSV (Pensions-Sicherungs Verein) incase of an insolvency of the Group companies concerned, iscovered by securities. On 31 January 2013, a new trust agreement(Treuhandvereinbarung) between the trust and the participant
companies was concluded qualifying these securities as plan
assets from this date onwards. The securities, which were
accounted before as available-for-sale ﬁ nancial assets, werereclassiﬁed on this date and deduct the related provision. The
trustee agreements stipulate that some portions of the obligationmust be covered with securities in the same amount, while otherportions must be covered by 115% leading to an overfunding of
the related part of the obligation. These amounts are recognised
as other non-current and current assets.

b) Provisions for Retirement Plans
When Group employees retire, they receive indemnities as
stipulated in retirement agreements, in accordance with regulations
and practices of the countries in which the Group operates.
France – The French pension system is operated on a “pay as yougo” basis. Besides the basic pension from the Social Security, each
employee is entitled to receive a complementary pension fromdeﬁned contribution schemes ARRCO (Association pour le régime
de retraite complémentaire des salariés) and AGIRC (Association
générale des institutions de retraite des cadres). Moreover, French
law stipulates that employees are paid retirement indemnities inform of lump sums on the basis of the length of service, which areconsidered as deﬁned obligations.
Germany – The Group has a pension plan (P3) for executive andnon-executive employees in place. Under this plan, the employer
provides contributions for the services rendered by the employees,
which are dependent on their salaries in the respective service
period. These contributions are converted into components whichbecome part of the accrued pension liability at the end of the year.
Total beneﬁts are calculated as a career average over the entire
period of service. Certain employees that are not covered by the
new plan receive retirement indemnities based on salary earned in
the last year or on an average of the last three years of employment.
For some executive employees, beneﬁts are depending on ﬁnal
salary at the date of retirement and the time period as executive.
Parts of the pension obligation in Germany are funded by assets
invested in specific funding vehicles. Besides a relief fund
(Unterstützungskasse), the Group has implemented a Contractual
Trust Arrangement (CTA). The CTA structure is that of a bilateraltrust arrangement. Assets that are transferred to the relief fundand the CTA qualify as plan assets under IAS 19.

5

0

472

447

It does not exist any statutory or regulatory minimum funding
requirements in Germany.
United Kingdom – The EADS Astrium Pension Scheme was
implemented by Astrium Ltd., Stevenage (UK) as the principal
employer. This plan comprises all eligible employees of Astrium Ltd.
as well as all personnel, who were recruited by one of the Group
companies located in the UK and participating in the scheme.
The majority of the Scheme’s liabilities relates to Astrium Ltd.
The major part of the obligation is funded by scheme assets due
to contributions of the participating companies. The Scheme isa registered pension scheme under the Finance Act 2004. The
Trustee’s only formal funding objective is the statutory funding
objective under the Pensions Act6 2004, which is to have sufﬁcientand appropriate assets to cover the Scheme’s obligations. Since
1 November 2013, this plan is generally closed for new joiners, whoparticipate in the newly implemented deﬁned contribution plan.
Moreover, the Group participates in the UK in several funded
trustee-administered pension plans for both executive and nonexecutive employees with BAE Systems being the principal
employer. These plans qualify as multi-employer deﬁned beneﬁtplans under IAS 19 “Employee Benefits”. The Group’s mostsigniﬁcant investments in terms of employees participating in these
BAE Systems UK pension plans are Airbus Operations Ltd., UK
and MBDA UK Ltd., UK. Participating Airbus Operations Ltd., UK
employees have continued to remain members in the BAE Systems
UK pension plans due to the UK pension agreement between theGroup and BAE Systems and a change in UK pensions legislation
enacted in April 2006.
Generally, based on the funding situation of the respective pension
schemes, the pension plan trustees determine the contribution
rates to be paid by the participating employers to adequately fundthe schemes. The different UK pension plans in which the Groupinvestments participate are currently underfunded. BAE Systems
has agreed with the trustees various measures designed to makegood the underfunding. These include (i) regular contribution
payments for active employees well above such which would
prevail for funded plans and (ii) extra employers’ contributions.
Due to the contractual arrangements between the Group and BAE
Systems, EADS’ contributions in respect of its investments for themost signiﬁcant pension scheme (Main Scheme) were capped
until July 2011 for Airbus Operations Ltd., UK. Contributions
exceeding the respective capped amounts were paid by BAE
Systems. Even after the expiry of the contribution cap the uniquefunding arrangements between BAE Systems and the Group createa situation for the Group different from common UK multi-employer
plans with special regulations limiting regular contributions thathave to be paid by Airbus Operations Ltd., UK to rates applicable
to all participating employers.

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 59

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

Based on detailed information about the different multi-employer
pension schemes provided by BAE Systems, the Group is able toappropriately and reliably estimate the share of its participation in
the schemes, i.e. its share in plan assets, deﬁned beneﬁt obligations(DBO) and pension costs. The information enables the Groupto derive keys per plan to allocate for accounting purposes anappropriate proportion in plan assets, deﬁned beneﬁt obligations
and pension costs to its UK investments as of 31 December
2013 and 2012, taking into account the impact of the capped
contributions as well as future extra contributions agreed by BAE
Systems with the Trustees. Therefore, the Group accounts for
its participation in BAE Systems’ UK deﬁned beneﬁt schemes
under the deﬁned beneﬁt accounting approach in accordancewith IAS 19.
In 2013, the share of Airbus in BAE Systems’ main schemesamounts to 19.45% (in 2012: 19.57%). The impact of this change
is mainly reﬂected in the remeasurements of the period.
In the event that an employer who participates in the BAE pension
schemes fails or cannot be compelled to fulﬁl its obligations as aparticipating employer, the remaining participating employers are
obliged to collectively take on its obligations. The Group considers
the likelihood of this event as remote.

Risks
The deﬁned beneﬁt obligation exposes the Group to actuarial risks,
including the following ones:
Market price risk: The return on plan assets is assumed to be
the discount rate derived from AA-rated corporate bonds. If theactual rate of plan assets is lower than the applied discount rate,
the net deﬁned beneﬁt liability increases accordingly. Moreover,the market value of the plan assets are subject to volatility, which
also impact the net liability.
Interest rate risk: The level of the deﬁ ned beneﬁ t obligation issigniﬁcantly impacted by the applied discount rate. The low interest
rates, particular in the €-denominated market environment, leadto a relatively high net pension liability. If the decline in returnsof corporate bonds will continue, the deﬁned beneﬁt obligation
will further increase in future periods, which can only be offset
partially by the positive development of market values of those
corporate bonds included in plan assets. Generally, the pension
obligation is sensitive to movements in the interest rate leading
to volatile results in the valuation.
Inflation risk: The pension liabilities can be sensitive to movementsin the inﬂation rate, whereby a higher inﬂation rate could lead to anincreasing liability. Since some pension plans are directly related
to salaries, increases in compensations could result in increasing
pension obligations. A ﬁ xed interest rate has been agreed forthe deferred compensation plan P3, which is ﬁ nanced by theemployees. During periods of high inﬂation rates, it is assumed
that there is only little incentive in contributing to this plan.
Longevity risk: The pension liabilities are sensitive to the life
expectancy of its members. Rising life expectancies lead to anincrease in the valuation of the pension liability.
Actuarial assessments are regularly made to determine the amountof the Group’s commitments with regard to retirement indemnities.
These assessments include an assumption concerning changes insalaries, retirement ages and long-term interest rates. It comprises
all the expenses the Group will be required to pay to meet thesecommitments.

The weighted-average assumptions used in calculating the actuarial values of the most signiﬁcant retirement plans are as follows:

Pension plans inAssumptions in %Germany

FranceUK

Multi-employer (UK)31 December

31 December

31 December

31 December

2013

2012

2013

2013

2013

2012

2012

2012

Discount rate

3.6

3.7

3.4

3.5

4.6

4.7

4.5

4.5

Rate of compensation increase

3.25

3.25

3.1

3.1-3.5

3.5

3.5

3.0

3.4

Rate of pension payment increase

2.0

2.0

- / 2.0- / 2.0

3.0

2.8

1.9 – 3.7

1.8 – 3.5

Inflation rate

2.0

2.0

2.0

2.0

3.2

2.8

3.4

2.9

The Group derives the discount rate used to determine the deﬁned
beneﬁt obligation from yields on high quality corporate bonds withan AA rating. The determination of the discount rate is based on theiBoxx€ Corporates AA bond data and in 2013 uses the granularityof single bond data in order to receive more market informationfrom the given bond index. The discount rate for the estimatedduration of the respective pension plan is then extrapolated along
the yield curve. In the UK it is determined with reference to the full

60 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

yield curve of AA-rated sterling-denominated corporate bonds ofvarying maturities. The salary increase rates are based on longterm expectations of the respective employers, deviated from theassumed inﬂation rate and adjusted by promotional or productivity
scales.
Rates for pension payment increases are deviated from therespective inﬂation rate for the plan.

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

Inﬂ ation rate for German plans corresponds to the expected
increase in cost of living. In the UK, the inﬂation assumptions arederived by reference to the difference between the yields on indexlinked and ﬁxed-interest long-term government bonds, or advice
from the local actuary depending on the available information.
For the calculation of the German pension obligation, the “2005 G”
mortality tables (generation tables) as developed by Prof. Dr. Klaus

Heubeck are applied. For the UK schemes, the Self-AdministeredPensions S1 mortality tables based on year of birth (as publishedby the Institute of Actuaries) is used in conjunction with the resultsof an investigation into the actual mortality experience of scheme
members. In France, INSEE (Institute for French Statistics) tables
are applied.

The development of the deﬁned beneﬁt obligation is set out below:
CHANGE IN DEFINED BENEFIT OBLIGATIONS(In € million)

Defined benefit obligations as of 1 January 2012

Pension plansof the Group

Share of multiemployer plan in UK

Total

7,379

3,260

10,639Service cost

228

61

289

Interest cost

331

174

505

Plan amendments and curtailments

30

0

30

¬ from changes in financial assumptions

802

568

1,370

¬ from changes in experience adjustments

94

(1)

93

Remeasurements: Actuarial (gains) and losses arising

Change in consolidation, transfers and otherBenefits paid

76

5

81

(305)

(158)

(463)

Foreign currency translation adjustment

Defined benefit obligations as of 31 December 2012 / 1 January 2013

(5)

73

68

8,630

3,982

12,612Service cost

279

71

350

Interest cost

312

167

479

Curtailments

(5)

0

(5)

Remeasurements: Actuarial losses arising¬ from changes in demographic assumptions

1

0

1

¬ from changes in financial assumptions

14

87

101

¬ from changes in experience adjustments

119

14

133

Transfers and others

(3)

4

1

Benefits paid

(323)

(141)

(464)

Foreign currency translation adjustment

(13)

(81)

(94)

9,011

4,103

13,114

Defined benefit obligations as of 31 December 2013

The weighted average duration of the deﬁned beneﬁt obligation for retirement plans and deferred compensation is 15 years at 31 December
2013 (31 December 2012: 15 years).
The split of the deﬁned beneﬁt obligation for retirement plans and deferred compensation between active, deferred and pensioner
members for the most signiﬁcant plans is as follows (as of 31 December 2013 unless otherwise noted):

ActiveDeferredPensioner

Germany

42%

8%

50%

France

99%

1%

0%

UK(1)

69%

12%

19%

Share of multi-employer scheme in UK (Main Scheme)(2)

35%

15%

50%

Others

56%

15%

29%

(1) As of 5 April 2013
(2) As of 31 March 2011

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

The following table shows how the present value of the deﬁned beneﬁt obligations of retirement plans and deferred compensation
would have been inﬂuenced by changes in the actuarial assumptions as set out for 31 December 2013:

Change in actuarial assumptions

Present value of the obligation

Impact on defined benefit obligations
Obligation

Change(in € million)in %13,660-12,655(7.4)

Discount rate

Increase by 0.5%-point
Decrease by 0.5%-point

14,645

7.2

Salary growth

Increase by 0.25%-point

13,9342.0

Decrease by 0.25%-point

13,384(2.0)

Increase by 0.25%-point

13,9592.2

Decrease by 0.25%-point

13,361(2.2)

Increase by 1 year

14,024

2.7

Reduction by 1 year

13,290(2.7)

Pension growthLife expectancy

Sensitivities are calculated based on the same method (present
value of the deﬁned beneﬁt obligation calculated with the projected
unit method) as applied when calculating the post-employment
beneﬁt obligations. The sensitivity analyses are based on a changeof one assumption while holding all other assumptions constant.

This is unlikely to occur in practice and changes of more than one
assumption may be correlated leading to different impacts on DBO
than disclosed above. If the assumptions change at a different
level, the effect on the DBO is not necessarily in a linear relation.

The development of plan assets is as follows:

Change in plan assets

Pension plansof the Group

Share of multiemployer plan in UK

Total

2,751

2,384

5,135

(In € million)

Fair value of plan assets as of 1 January 2012
(1)

132

128

260

Remeasurement of plan assets(1)

73

448

521

Contributions by employer

730

126

856

6

5

11

Interest income on plan assets

Contributions by other plan participants
Acquisitions and otherBenefits paid
Foreign currency translation adjustments

Fair value of plan assets as of 31 December 2012 / 1 January 2013

20

0

20

(120)

(158)

(278)

10

53

63

3,602

2,986

6,588

Interest income from plan assets

138

127

265

Remeasurement of plan assets

15

188

203

Contributions by employer

138

103

241

7

4

11

Contributions by other plan participants
Transfers

202

Benefits paid

(124)

(141)

(265)

Foreign currency translation adjustments

(10)

(59)

(69)

3,768

3,208

6,976

Fair value of plan assets as of 31 December 2013
(1) Figures are adjusted due to revised IAS 19.

In 2013, contributions in the amount of € 138 million (2012:€ 730 million) are made into the pension plans of the Group,
mainly relating to the relief fund in Germany with € 74 million (2012:€ 96 million), the Astrium Pension scheme with € 49 million (2012:€ 48 million) and the CTA with € 10 million (2012: € 583 million).

62 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

Contributions of approximately € 500 million are expected to bemade in 2014.

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

The fair value of the plan assets for retirement plans and deferred compensation can be allocated to the following classes:
31 December

2013(In € million)

2012

QuotedpricesUnquoted
prices

Total

QuotedpricesUnquoted
prices

Total

Equity securities
1,320

0

1,320

1,120

0

1,120

Rest of the world

569

0

569

325

0

325

Emerging markets

256

0

256

451

0

451

Global

677

0

677

705

0

705

Corporates

1,414

0

1,414

1,038

0

1,038

Governments

1,679

0

1,679

1,790

0

1,790

60

0

60

81

0

81

Pooled Investment Vehicles

288

22

310

221

0

221

Commodities

167

0

167

136

0

136

EuropeBonds

CoveredHedge Funds

86

0

86

0

0

0

Derivatives

6

(6)

0

7

(22)

(15)

Property(1)

292

5

297

284

5

289

Cash and Money Market Funds

259

0

259

466

0

466

Others

41

(85)

(44)

28

(47)

(19)

7,114

(64)

7,050

6,652

(64)

6,588

(1) Includes € 70 million (2012: € 71 million) of properties occupied by Group companies. It relates solely to the share in multi-employer plan in UK.

As a rule, quoted prices are available on active markets.
The majority of funded plans applies broadly an asset-liability
matching (ALM) framework. The strategic asset allocation (SAA)of the plans takes into account the characteristics of the underlying
obligations. Investments are widely diversiﬁed, such that the failureof any single investment would not have a material impact on theoverall level of assets. A large portion of assets in 2013 consists ofﬁxed income instruments, equities, and although the Group also
invests in property, commodities and hedge funds. The Group isreassessing the characteristics of the pension obligations from time
to time or as required by the applicable regulation or governanceframework. This typically triggers a subsequent review of the SAA.

The deﬁned beneﬁt obligation at the end of the year is the present value, without deducting any plan assets, of expected future payments
required to settle the obligation resulting from employee service in the current and prior periods. Related plan assets are deductedfrom the obligation leading to the funded status which corresponds to the recognised provision. The amount recorded as provision in
the Consolidated Statement of Financial Position can be allocated to the signiﬁcant countries as follows:

Recognised Provision for retirement plans(In € million)

Defined benefit obligation

Pension plans of the Group

Share of multi-employer
plan in the UK

Total

Germany

FranceUK

Others

6,572

1,292

622

144

3,982

12,612

Plan assets

2,923

15

559

105

2,986

6,588

Funded status

3,649

1,277

63

39

996

6,024

Recognised in the statement of financial
position as of 31 December 2012(1)

3,649

1,277

63

39

996

6,024

Defined benefit obligation

6,770

1,408

691

142

4,103

13,114

Plan assets

2,997

17

644

110

3,208

6,976

Funded status

3,773

1,391

47

32

895

6,138

Recognised in the statement of financial
position as of 31 December 2013

3,773

1,391

47

32

895

6,138

(1) Previous year’s figures are adjusted due to revised IAS 19.

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

The components of the net periodic pension cost, included in “Proﬁt before ﬁnance costs and income taxes”, are as follows:(In € million)

2013

Service cost
Interest cost
Interest income(1)

Past service cost(1)Net periodic pension cost

(1)

2012

2011

350

289

265

479

505

472

(265)

(260)

(246)

0

29

0

564

563

491

(1) Previous years’ figures are adjusted due to revised IAS 19.

Employer’s contribution to state and private pension plans, mainly in Germany and France, are to be considered as deﬁned contributionplans. Contributions in 2013 amount to € 672 million (in 2012: € 623 million).

c) Other Provisions
Movements in provisions during the year were as follows:(In € million)

Balance at
1 January Exchange
2013 differences

Increasefrompassageof timeReclassification /Change inconsolidated
Additionsgroup

Used Released

Balance at
31 December
2013

Contract losses

2,638

(1)

53

477

(1,023)

(274)

(72)

1,798

Outstanding costs

2,366

(39)

0

1,153

(98)

(751)

(108)

2,523

Aircraft financing risks

804

(9)

51

22

0

(102)

(89)

677

Personnel charges

726

(4)

1

545

(1)

(287)

(11)

969

Obligation from services
and maintenance agreements

374

0

11

161

(39)

(86)

(75)

346

Warranties

605

(3)

12

157

11

(175)

(16)

591

Restructuring measures /pre-retirement part-time work

303(1)

(1)

1

331

21

(116)

(38)

501

Litigations and claims

206

(1)

0

13

(2)

(53)

(9)

154

Asset retirement

112

0

4

6

0

0

(1)

121

(108)

(331)

(206)

1,074

(1,239) (2,175)

(625)

8,754

(2)

Other risks and charges

1,284

Total

9,418(1), (2)

(3)

4

434

(61)

137

3,299

(1) Previous year’s figures are adjusted due to revised IAS 19.
(2) Previous year’s figures are adjusted due to the PPA adjustments.

The provision for contract losses as part of other provisions
mainly relates to Airbus Military in conjunction with the A400M
and to the A350 XWB programme in Airbus Commercial. 2013provision consumption mainly reﬂects utilisation as the A400M
launch contract progresses whilst the increase to a large extent
is due to an additional net charge of € 434 million recognised in
the A350 XWB programme to reﬂect mainly the higher level ofrecurring costs. After two deliveries in 2013, A400M programme
enters in progressive enhancement of military capability in asequence to be negotiated and concluded with the customers.
Risks related to cost envelope and military functionalities areclosely monitored.
The majority of the addition to provisions for outstanding costs
relates to Cassidian and mainly corresponds to tasks to completeon construction contracts (e.g. border surveillance contracts(€ 426 million) and the Euroﬁghter programme (€ 125 million)).

64 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

The provision for aircraft ﬁnancing risks fully covers, in line with theGroup’s policy for sales ﬁnancing risk, the net exposure to aircraft
ﬁnancing of € 88 million (€ 92 million at 31 December 2012) andasset value risks of € 589 million (€ 712 million at 31 December2012) related to Airbus Commercial, Eurocopter and ATR (seeNote 33 “Commitments and contingencies”).
The provision for obligation from service and maintenanceagreements covers among others costs related to technical issues
identiﬁed and with solutions deﬁned.
The addition to provision for restructuring measures / preretirement part-time work mainly relates to restructuring measuresdeﬁned for the Group’s Defence and Space business in order toimprove competitiveness by reducing costs, create synergies in
the operations and product portfolio and better focus researchand development efforts. Accordingly, a plan including temporary
contract termination, non-replacement of attrition, redeployment,

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

partial and early retirement as well as voluntary leaves in Germany,
France, the UK and Spain has been communicated to the Group’s
employees and the European Works Council in December 2013.
As a result the Group has increased restructuring provisions by€ 292 million in total, excluding pension curtailment effects. Deﬁned
restructuring plan shall be fully implemented by the end of 2016.
Associated costs of deﬁned measures have been estimated basedon experience per country and measure from past social plans
throughout the Group.

“Reclassiﬁcation / Change in consolidated group” mainly relates
to offsetting of A400M and A350 XWB contract provisions torespective inventories.
In general, as the contractual and technical parameters to beconsidered for provisions in the aerospace sector are rather
complex, uncertainty exists with regard to the timing and amountsof expenses to be taken into account.
The majority of the Company’s other provisions are generally
expected to result in cash outﬂows during the next 1 to 12 years.

26. Financing Liabilities
The Group issued under its EMTN Programme (Euro Medium Term
Note Programme) two currently outstanding euro denominatedbonds. The first currently outstanding bond was issued
in September 2003 for a total of € 0.5 billion matures in September
2018. It carries a coupon of 5.5% (effective interest rate 5.58%) andwas swapped into variable rate of 3M-Euribor +1.72% in 2005. The
second currently outstanding bond was issued in August 2009 fora total of € 1 billion. It matures in August 2016 and carries a couponof 4.625% (effective interest rate 4.68%), which was swapped into
variable rate of 3M-Euribor +1.57%.
Furthermore, on 17 April 2013, the Group placed an inaugural
US$1 billion issue on the U.S. institutional market under 144A /Reg S format. The bond carries a ﬁxed coupon of 2.70% (effective
interest rate 2.73%) and matures in April 2023.
The Group can issue commercial paper under the so called“billet de trésorerie” programme at ﬂoating or ﬁxed interest rates
corresponding to the individual maturities ranging from 1 day to
12 months. The issued volume at 31 December 2013 amounted
to € 0 (2012: € 165 million). The programme has been set up in
2003, maximum size increased in 2013 to € 3 billion from € 2 billion
previously. Liabilities from commercial paper programmes areincluded in “Bonds”.
In 2004, the EIB (European Investment Bank) granted a longterm loan to the Group in the amount of US$421 million maturing
in August 2014 and bearing a ﬁxed interest rate of 5.11% (effective

interest rate 5.11%). In January 2011, the Group entered into a
US$300 million loan agreement maturing in January 2021 with theDevelopment Bank of Japan with a variable interest rate of 3 month
USD Libor +1.15%. Concurrently, the Group swapped the variableinterest rate into a ﬁxed rate of 4.76%. In August 2011, the Group
entered into a US$721 million loan agreement with EIB maturing
in August 2021 with a variable interest rate of 3 month USD Libor+0.85%. Concurrently, the Group swapped the variable interest
rate into ﬁxed rate of 3.2%. In February 2013, the Group enteredinto a US$406 million loan agreement with EIB maturing in February2020 with a variable interest rate of 3 month USD Libor +0.93%.
Furthermore, Airbus received in 1999 a Reinvestment Note from
Deutsche Bank AG in the amount of US$800 million, bearing aﬁxed interest rate of 9.88% with an outstanding debt of € 157 million(2012: € 195 million).
Liabilities from ﬁnancial institutions at 31 December 2013 also
include € 608 million short-term liabilities (2012: € 0) from securities
lending activities.
Financing liabilities include liabilities connected with sales ﬁnancing
transactions amounting to € 229 million (2012: € 345 million), mainly
at variable interest rates.
Non-recourse Airbus ﬁ nancing liabilities (risk is supported byexternal parties) amount to € 229 million (2012: € 345 million).

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

31 December(In € million)

2013

2012

Bonds

2,340

1,669

1,217

1,382

237

287

159

168

3

0

3,956

3,506

thereof due in more than five years: 780 (31 December 2012: 579)
Liabilities to financial institutions
thereof due in more than five years: 754 (31 December 2012: 561)
Loans
thereof due in more than five years: 30 (31 December 2012: 56)
Liabilities from finance leases
thereof due in more than five years: 97 (31 December 2012: 69)
Othersthereof due in more than five years: 3 (31 December 2012: 0)

Long-term financing liabilities

0165

Liabilities to financial institutions

Bonds

955

53

Loans

116

189

Liabilities from finance leases

13

13

561

853

Short-term financing liabilities (due within one year)

1,645

1,273

Total

5,601

4,779

OthersIncluded in “Others” are ﬁnancing liabilities to joint ventures.
The aggregate amounts of ﬁnancing liabilities maturing during the next ﬁve years and thereafter are as of 31 December 2013 as follows:(In € million)

Financing liabilities

2014

1,645

2015

203

2016

1,295

2017

168

2018

626

Thereafter

1,664

Total

5,601

The aggregate amounts of ﬁnancing liabilities maturing during the next ﬁve years and thereafter are as of 31 December 2012 as follows:(In € million)

Financing liabilities

2013

1,273

2014

539

2015

219

2016

1,316

2017

167

Thereafter

1,265

Total

4,779

66 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Position

27. Other Financial Liabilities

31 December

2013

2012

European Governments refundable advances

5,911

5,754

Liabilities for derivative financial instruments

671

1,159

(In € million)

Non-current other financial liabilities

Others

576

545

7,158

7,458

European Governments refundable advances

455

358

Liabilities to related companies

52

26

Liabilities for derivative financial instruments

303

852

Others

657

479

1,467

1,715

Total
Current other financial liabilities

Total

Regarding the interest expenses on European Governments
refundable advances see Note 12 “Total ﬁnance costs”. Due totheir speciﬁc nature, namely their risk-sharing features and thefact that such advances are generally granted to the Group on thebasis of signiﬁcant development projects, European Governments
refundable advances are accounted for by the Group within“Non-current / current other ﬁnancial liabilities” on the statementof ﬁnancial position including accrued interests and presented
within “cash provided by operating activities” in the Consolidated
Statements of Cash Flows.
Included in “Other ﬁnancial liabilities” are € 1,498 million (2012:€ 1,713 million) due within one year and € 4,237 million (2012:€ 3,847 million) maturing after more than ﬁve years.

28. Other Liabilities

31 December(In € million)

2013

2012

10,225

9,881

565

643

10,79010,52425,19325,333

Non-current other liabilities
Customer advance payments
Others

Total
Current other liabilities
Customer advance payments
Tax liabilities (excluding income tax)
Others

Total

Included in “Other liabilities” are € 23,969 million (2012:€ 25,164 million) due within one year and € 4,351 million (2012:€ 3,746 million) maturing after more than ﬁve years.

632

592

2,334

2,258

28,15928,183

Advance payments received relating to construction contracts
amount to € 9,871 million (2012: € 10,037 million) mainly resulting
from Airbus Military (€ 4,067 million), Astrium (€ 3,068 million),
Cassidian (€ 1,580 million) and Eurocopter (€ 1,087 million).

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 67

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Notes to the Consolidated Financial Statements (IFRS)
2.4 Notes to the Consolidated Statements of Cash Flows

29. Trade Liabilities
As of 31 December 2013, trade liabilities amounting to € 445 million (€ 74 million as of 31 December 2012) mature after more than
one year.

30. Deferred Income

31 December(In € million)

Non-current deferred income
Current deferred income

(1)

Total

2013

2012

239

212

999

1,060

1,238

1,272

(1) Previous year’s figures are adjusted due to PPA adjustments of prior year’s acquisitions.

Deferred income includes sales of aircraft with asset value guarantee commitments which are accounted for as operating leases(€ 19 million and € 117 million as of 31 December 2013 and 2012, respectively).

2.4 Notes to the Consolidated Statementsof Cash Flows
31. Consolidated Statements of Cash Flows
Cash and cash equivalents are composed of the following elements:

Cash and cash equivalents

2013

2012

(In € million)

Bank account & petty cash

2,356

2,761

Short-term securities (at fair value through profit or loss)

2,933

2,296

Short-term securities (available for sale)

2,130

3,323

Others

346

376

7,765

8,756

Total cash and cash equivalents
As of 31 December 2013, bank account and petty cash are mostly
denominated in €, USD and GBP. Others include mainly the Group
share in MBDA’s cash and cash equivalents, deposited at BAE
Systems and Finmeccanica which is available upon demand with
an amount of € 340 million (€ 374 million as of 31 December 2012).
Derivative instruments recognised in the Group’s statement ofﬁnancial position consist in (a) instruments that are entered into
as hedges of the Group’s operating activities or interest result,

68 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

and (b) in embedded foreign currency derivatives that arise fromseparating the foreign currency component from certain operating
contracts. Cash ﬂ ows resulting from the settlement of thesederivatives are therefore recorded as part of Group cash ﬂow
from operations. Similarly, ﬁnancial assets and liabilities arisingfrom customer ﬁ nancing activities, and refundable advancesfrom European Governments are considered part of the Group’s
operating activities and related cash ﬂows are hence recognised
as cash ﬂows from operating activities.

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Notes to the Consolidated Financial Statements (IFRS)
2.4 Notes to the Consolidated Statements of Cash FlowsThe following chart provides details on cash ﬂow for acquisitions (resulting in additional assets and liabilities acquired) of subsidiaries,
joint ventures and businesses:
31 December(In € million)

Total purchase pricethereof paid in cash and cash equivalents
Cash and cash equivalents included in the acquired subsidiaries,
joint ventures and businesses

Cash Flow for acquisitions, net of cash

2013

2012

2011

(17)

(259)

(1,631)

(17)

(259)

(1,631)

1

58

96

(16)

(201)

(1,535)

In 2013, the aggregate cash ﬂow for acquisitions, net of cash of €-16 million relates mainly to the acquisition of Arkoon Network Security
SA (€-15 million).
In 2012, the aggregate cash ﬂow for acquisitions, net of cash of €-201 million relates mainly to the acquisitions of Cassidian (€-123 million
for Carl Zeiss Optronics GmbH, Rheinmetall Airborne Systems GmbH and Netasq S.A.) and to the asset deals of Eurocopter (€-43 million).
In 2011, the aggregate cash ﬂow for acquisitions, net of cash of €-1,535 million includes mainly the acquisition of Vizada (€-709 million),
Vector (€-432 million) and Satair (€-342 million).
31 December(In € million)

2013

2012

2011

Intangible assets; property, plant and equipment

4

99

719

Inventories

0

105

274

Trade receivables

1

65

387

Other assets

8

42

128

Cash and cash equivalents

1

58

96

Assets

14

369

1,604

Provisions

(1)

(126)

(140)

Trade liabilities

0

(32)

(288)

Financing liabilities

(1)

(11)

(203)

Tax liabilities and other liabilities

(9)

(77)

(308)

Liabilities

(11)

(246)

(939)

Fair value of total net assets

3

123

665

Increase in non-controlling interests due to acquisitions

0

(8)

(2)

Fair value of net assets acquired

3

115

663

Goodwill arising on acquisitions

11

199

1,020

Badwill00(2)

Total consideration

14

314

1,681

Gains related to business combinations

0

(7)

(24)

Non-cash effective consideration of investments held prior to the acquisitions

0

(1)

(21)

Linked non-controlling interests squeeze out transactions

3

5

(5)

Non-cash effective consideration of earn-outs to be paid at a later stage

0

(52)

0

Less cash and cash equivalents of acquired subsidiaries,
joint ventures and businesses

(1)

(58)

(96)

Cash Flow for acquisitions, net of cash

16

201

1,535

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 69

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Notes to the Consolidated Financial Statements (IFRS)
2.4 Notes to the Consolidated Statements of Cash FlowsThe following chart provides details on cash ﬂow from disposals (resulting in assets and liabilities disposed) of subsidiaries:
31 December(In € million)

Total selling pricethereof received by cash and cash equivalents

2013

2012

2011

0

0

18

0

0

18

Cash and cash equivalents included in the (disposed) subsidiaries

0

0

0

Cash Flow from disposals, net of cash

0

0

18

The aggregate cash ﬂow from disposals, net of cash, in 2011 of € 18 million results from the sale of EADS NA Defense Security Systems
Solutions Inc.
31 December

2013

2012

2011

Intangible assets; property, plant and equipment

0

0

(8)

Trade receivables

0

0

(4)

Cash and cash equivalents

0

0

0

Assets00(12)Provisions

0

0

2

Other liabilities

0

0

2

Liabilities

0

0

4

Book value of net assets

0

0

(8)

Related disposal of Goodwill

0

0

(10)

Less cash and cash equivalents of disposed subsidiaries

0

0

0

Cash Flow from disposals, net of cash

0

0

(18)

(In € million)

70 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

2.5 Other Notes to the Consolidated Financial
Statements
32. Litigation and Claims
The Group is involved from time to time in various legal andarbitration proceedings in the ordinary course of its business,the most signiﬁcant of which are described below. Other thanas described below, the Group is not aware of any material
governmental, legal or arbitration proceedings (including any suchproceedings which are pending or threatened), during a period
covering at least the previous twelve months which may have, or
have had in the recent past signiﬁcant effects on EADS N.V.’s or
the Group’s ﬁnancial position or proﬁtability.
Regarding the Group’s provisions policy, the Group recognises
provisions for litigation and claims when (i) it has a present
obligation from legal actions, governmental investigations,proceedings and other claims resulting from past events that are
pending or may be instituted or asserted in the future against theGroup, (ii) it is probable that an outﬂow of resources embodying
economic beneﬁts will be required to settle such obligation and(iii) a reliable estimate of the amount of such obligation can be
made. The Group believes that it has made adequate provisions
to cover current or contemplated general and speciﬁc litigation
risks. For the amount of provisions for litigation and claims, seeNote 25c) “Other provisions”.

WTO
Although the Group is not a party, EADS is supporting theEuropean Commission in litigation before the WTO. Following its
unilateral withdrawal from the 1992 EU-US Agreement on Trade in
Large Civil Aircraft, the US lodged a request on 6 October 2004
to initiate proceedings before the WTO. On the same day, theEU launched a parallel WTO case against the US in relation to its
subsidies to Boeing.
On 1 June 2011, the WTO adopted the Appellate Body’s ﬁnal reportin the case brought by the US assessing funding to Airbus from
European governments. On 1 December 2011, the EU informed
the WTO that it had taken appropriate steps to bring its measures
fully into conformity with its WTO obligations, and to comply with
the WTO’s recommendations and rulings. Because the US did
not agree, the matter is now under WTO panel review pursuant
to WTO rules.
On 23 March 2012, the WTO adopted the Appellate Body’s ﬁnal
report in the case brought by the EU assessing funding to Boeing
from the US. The EU has cited the failure by the US to implement theﬁndings prior to the due date of 23 September 2012 in commencing
a new proceeding on the adequacy of US compliance.

Exact timing of further steps in the WTO litigation process is subject
to further rulings and to negotiations between the US and the EU.
Unless a settlement, which is currently not under discussion, isreached between the parties, the litigation is expected to continue
for several years.

Securities Litigation
Following the dismissal of charges brought by the French Autoritédes marchés financiers for alleged breaches of market regulations
and insider trading rules with respect primarily to the A380 delays
announced in 2006, proceedings initiated in other jurisdictions havealso been terminated. Nevertheless, following criminal complaints
ﬁled by several shareholders in 2006 (including civil claims fordamages), a French investigating judge carried out an investigation
based on the same facts. In November 2013, the investigating
judge decided to send the case to trial (renvoi devant le tribunal
correctionnel) against seven current and former executives thatexercised their stock options in March 2006 and the two coreshareholders. All other parties will not stand trial.

CNIM
On 30 July 2010, Constructions Industrielles de la Méditerrannée(“CNIM”) brought an action against the Group and certain of its
subsidiaries before the commercial court of Paris, alleging anticompetitive practices, breach of long-term contractual relationships
and improper termination of pre-contractual discussions. CNIM
is seeking approximately € 115 million in damages on a joint andseveral basis. On 12 January 2012, the court rejected all of CNIM’sclaims, following which CNIM ﬁled for appeal. While preparing
appeal, CNIM offered to withdraw its claims in exchange for theGroup withdrawing their claims. On 5 December 2013, the Court
took note of the dismissal of CNIM and its acceptance by the
defendants, thereby declaring the case closed.

GPT
Prompted by a whistleblower’s allegations, the Company has
conducted internal audits and commissioned an external
investigation relating to GPT Special Project Management Ltd.
(“GPT”), a subsidiary that the Group acquired in 2007. The
allegations called into question a service contract entered into
by GPT prior to its acquisition by the Group, relating to activities
conducted by GPT in Saudi Arabia. Following the allegations,
the Group conducted comprehensive internal audits in 2010 that
did not detect any violations of law. The UK Serious Fraud Ofﬁce(the “SFO”) subsequently commenced a review of the matter.

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 71

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

In 2011, the Group retained PricewaterhouseCoopers (“PwC”) to
conduct an independent review, the scope of which was agreed
with the SFO. In the period under review and based on the work
it undertook, nothing came to PwC’s attention to suggest that
improper payments were made by GPT: Further, the review did
not ﬁnd evidence to suggest that GPT or through GPT, any otherGroup company, asked speciﬁc third parties to make improper
payments on their behalves. The PwC review was conducted
between November 2011 and March 2012, and a copy of its report
was provided by the Group to the SFO in March 2012. Separately,in August 2012, the SFO announced that it had opened a formal
criminal investigation into the matter. The Group is cooperating
fully with this investigation.

Euroﬁghter Austria
In March 2012, the German public prosecutor, following a request
for assistance by the Austrian public prosecutor, launched acriminal investigation into alleged bribery, tax evasion and breachof trust by current and former employees of EADS DeutschlandGmbH and Euroﬁghter Jagdﬂugzeug GmbH as well as by third
parties relating to the sale of Euroﬁghter aircraft to Austria in 2003.

The Group is cooperating fully with this investigation and has also
engaged external legal counsel to conduct an independent reviewof the matter.

Commercial Disputes
In May 2013, the Group has been notiﬁed of a commercial dispute
following the decision taken by the Group to cease a partnership forsales support activities in some local markets abroad. The Group
believes it has solid grounds to legally object to the alleged breachof a commercial agreement. However, the consequences of thisdispute and the potential outcome of any future procedures to be
initiated by the parties cannot be assessed at this stage.
In the course of another commercial dispute, the Group hasreceived in the third quarter 2013 a statement of claim alleging
liability for refunding part of the purchase price of a large contract
which the customer claims it was not obliged to pay. The Group
believes that this claim which goes back many years ago should
be dismissed in principle. As always, the outcome of a legal
proceeding is uncertain.

33. Commitments and Contingencies
Commitments and contingent liabilities
Sales ﬁ nancing — In relation to its Airbus, Eurocopter and
ATR activities, the Group is committing itself in sales ﬁnancing
transactions with selected customers. Sales ﬁnancing transactions
are generally collateralised by the underlying aircraft. Additionally,
Airbus, Eurocopter and ATR beneﬁt from protective covenants andfrom security packages tailored according to the perceived risk andthe legal environment. The Group believes that the estimated fairvalue of the aircraft securing such commitments will substantially
offset any potential losses from the commitments. Any remaining
difference between the amount of ﬁnancing commitments given
and the collateral value of the aircraft ﬁnanced is provided for as
an impairment to the relating asset, if assignable, or as a provision
for aircraft ﬁnancing risk. The basis for this write down is a riskpricing-model, which is applied at every closing to closely monitor
the remaining value of the aircraft.
Depending on which party assumes the risks and rewards ofownership of a ﬁ nanced aircraft, the assets relating to sales
financing are accounted for on the statement of financial

72 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

position either as (i) an operating lease (see Note 15 “Property,
plant and equipment”) or (ii) a loan from aircraft ﬁnancing or (iii) a
ﬁnance lease receivable (see Note 17 “Investments in associates
accounted for under the equity method, other investments
and other long-term ﬁ nancial assets”) or (iv) inventory. As of
31 December 2013, related accumulated impairment amounts to€ 169 million (2012: € 223 million) for operating lease, to € 124 million(2012: € 132 million) for loans and ﬁnance lease receivables and€ 10 million for inventories (2012: € 0). As part of provisions foraircraft ﬁnancing risks € 43 million (2012: € 49 million) are recorded(see Note 25c) “Other provisions”).
Certain sales ﬁnancing transactions include the sale and leaseback of the aircraft with a third party lessor under operatinglease. Unless the Group has sold down the relating operatinglease commitments to third parties, who assume liability for thepayments, it is exposed to future lease payments.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

Future nominal operating lease payments that result from aircraft sales ﬁnancing transactions are recorded off balance sheet andare scheduled to be paid as of 31 December 2013 as follows:(In € million)

Not later than 201484

Later than 2014 and not later than 2018174

Later than 2018

13

Total

271

Of which commitments where the transaction has been sold to third parties(219)

Total aircraft lease commitments where the Group bears the risk (not discounted)

52

Future nominal operating lease payments that result from aircraft sales ﬁnancing transactions are recorded off balance sheet andare scheduled to be paid as of 31 December 2012 as follows:(In € million)

Not later than 201369

Later than 2013 and not later than 2017

219

Later than 2017

44

Total

332

Of which commitments where the transaction has been sold to third parties(281)

Total aircraft lease commitments where the Group bears the risk (not discounted)
Total aircraft lease commitments of € 271 million as of 31 December
2013 (2012: € 332 million) arise from aircraft head-leases and are
typically backed by corresponding sublease income from customers
with an amount of € 188 million (2012: € 300 million). A large partof these lease commitments (€ 219 million and € 281 million as of
31 December 2013 and 2012) arises from transactions that weresold down to third parties, which assume liability for the payments.

51

The Group determines its gross exposure to such operating leases
as the present value of the related payment streams. The difference
between gross exposure and the estimated value of underlying
aircraft used as collateral, the net exposure, is provided for in fullwith an amount of € 45 million as of 31 December 2013 (2012:€ 43 million), as part of the provision for aircraft ﬁnancing risks (seeNote 25c) “Other provisions”).

As of 31 December 2013 and 2012, the total consolidated – on and off balance sheet – Commercial Aviation Sales Financing Exposure
is as follows (Airbus Commercial, Eurocopter and 50% for ATR):
31 December(In € million)

2013

2012

Total gross exposure

1,358

1,297

Estimated fair value of collateral (aircraft)

(967)

(850)

Net exposure (fully provided for)

391

447

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 73

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

Details of provisions / accumulated impairments are as follows:
31 December

2013

2012

Accumulated impairment on operating leases (see Note 15 “Property,
plant and equipment”)

169

223

Accumulated impairment on loans from aircraft financing and finance leases(see Note 17 “Investments in associates accounted for under the equity method,other investments and other long-term financial assets”)

124

132

Provisions for aircraft financing risk (on balance sheet) (see Note 25c)
“Other provisions”)

43

49

Impairment charge on second hand aircraft included in inventories(see Note 18 “Inventories”)

100Provisions for aircraft financing risk (commitment off balance sheet)(see Note 25c) “Other provisions”)

45

43

391

447

(In € million)

Total provisions / accumulated impairments
for sales financing exposure
Asset value guarantees — Certain sales contracts may include theobligation of an asset value guarantee whereby Airbus Commercial,
Eurocopter or ATR guarantee a portion of the value of an aircraft
at a speciﬁc date after its delivery. Management considers theﬁnancial risks associated with such guarantees to be manageable.
Three factors contribute to this assessment: (i) the guarantee only
covers a tranche of the estimated future value of the aircraft, and its
level is considered prudent in comparison to the estimated future
value of each aircraft; (ii) the asset value guarantee related exposure
is diversiﬁed over a large number of aircraft and customers; and(iii) the exercise dates of outstanding asset value guarantees are
distributed through 2025. If the present value of the guarantee
given exceeds 10% of the sales price of the aircraft, the sale ofthe underlying aircraft is accounted for as an operating lease (seeNote 15 “Property, plant and equipment” and Note 30 “Deferredincome”). In addition, the Group is contingently liable in case asset
value guarantees with less than 10% are provided to customers aspart of aircraft sales. Counter guarantees are negotiated with third
parties and reduce the risk to which the Group is exposed. As of
31 December 2013, the nominal value of asset value guarantees
provided to airlines, that do not exceed the 10% criteria, amounts
to € 871 million (2012: € 1,046 million), excluding € 205 million (2012:€ 333 million) where the risk is considered to be remote. In manycases the risk is limited to a speciﬁc portion of the residual valueof the aircraft. The present value of the risk inherent to the given
asset value guarantees where a settlement is being considered asprobable is fully provided for and included in the total amount ofprovisions for asset value risks of € 589 million (2012: € 712 million)(see Note 25c) “Other provisions”). This provision covers a potential
expected shortfall between the estimated value of the aircraft ofthe date upon which the guarantee can be exercised and the value

74 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

guaranteed on a transaction basis taking counter guarantees into
account.
With respect to ATR, the Group and Finmeccanica are jointly andseverally liable to third parties without limitation. Amongst theshareholders, the liability is limited to each partner’s proportionate
share.
While backstop commitments to provide financing related
to orders on Airbus Commercial’s and ATR’s backlog are also
given, such commitments are not considered to be part of gross
exposure until the ﬁnancing is in place, which occurs when theaircraft is delivered. This is due to the fact that (i) past experiencesuggests it is unlikely that all such proposed ﬁnancings actually
will be implemented (although it is possible that customers not
beneﬁ ting from such commitments may nevertheless request
ﬁnancing assistance ahead of aircraft delivery), (ii) until the aircraft
is delivered, Airbus Commercial or ATR retain the asset and do notincur an unusual risk in relation thereto, and (iii) third parties may
participate in the ﬁnancing. In order to mitigate Airbus Commercialand ATR credit risks, such commitments typically contain ﬁnancial
conditions which guaranteed parties must satisfy in order to beneﬁt
therefrom.
Other commitments — Other commitments comprise contractual
guarantees and performance bonds to certain customers as wellas commitments for future capital expenditures.
Future nominal operating lease payments (for the Group as alessee) for rental and lease agreements (not relating to aircraft
sales ﬁnancing) amount to € 731 million (2012: € 916 million) as of
31 December 2013, and relate mainly to procurement operations(e.g. facility leases, car rentals).

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

Maturities as of 31 December 2013 are as follows:(In € million)

Not later than 2014

150

Later than 2014 and not later than 2018

377

Later than 2018

204

Total

731

The respective maturities as of 31 December 2012 are as follows:(In € million)

Not later than 2013164

Later than 2013 and not later than 2017

383

Later than 2017

369

Total

916

34. Information about Financial Instrumentsa) Financial Risk Management
By the nature of the activities carried out, the Group is exposed
to a variety of ﬁnancial risks, as explained below: (i) market risks,
especially foreign currency exchange rate risks, interest rate risks,
equity price risks and commodity price risks, (ii) liquidity risk and(iii) credit risk. The Group’s overall ﬁ nancial risk management
programme focuses on mitigating unpredictable ﬁnancial market
risks and their potential adverse effects on the Group’s operationaland ﬁnancial performance. The Group uses derivative ﬁnancial
instruments and, to a minor extent, non-derivative ﬁnancial liabilities
to hedge certain risk exposures.
The ﬁnancial risk management of the Group is generally carriedout by the Central Treasury department at EADS Headquarters
under policies approved by the Board of Directors or by the Chief
Financial Ofﬁcer. The identiﬁcation, evaluation and hedging of
the ﬁnancial risks is in the responsibility of established treasurycommittees jointly with the Group’s Divisions and Business Units.

Market Risk
Currency risk — Foreign exchange risk arises when futurecommercial transactions or firm commitments, recognised
assets and liabilities and net investments in foreign operations
are denominated in a currency that is not the entity’s functional
currency.
The Group manages a long-term hedge portfolio with a maturity ofseveral years covering its net exposure to US dollar sales, mainly
from the activities of Airbus Commercial. This hedge portfolio
covers to a large extent the Group’s highly probable transactions.
Signiﬁcant parts of Group revenues are denominated in US dollars,
whereas a major portion of its costs is incurred in euros and to asmaller extent in GBP. Consequently, to the extent that the Group
does not use ﬁnancial instruments to cover its current and future

foreign currency exchange rate exposure, its proﬁts are affectedby changes in the euro-US dollar exchange rate. As the Groupintends to generate proﬁts only from its operations and not throughspeculation on foreign currency exchange rate movements, it
uses hedging strategies to manage and minimise the impact of
exchange rate ﬂuctuations on these proﬁts.
The Group endeavours to hedge the majority of its exposure based
on ﬁrm commitments or forecasted transactions. For ﬁnancial
reporting purposes, foreign currency transactions qualify as ahedged item if they are included in the internally audited orderbook or are otherwise considered highly probable, e.g. becauseof contractual or planning evidence.
For products such as aircraft, the Group typically hedges ﬁrmly
committed sales in US dollar. The hedged items are deﬁned asﬁrst ﬁrmly committed future cash inﬂows for a given month based
upon ﬁnal payments at delivery. Usually, the Group designates a
portion of the total monthly cash inﬂows as the hedged position
to cover its expected foreign currency exposure. Therefore, aslong as the actual gross foreign currency cash inﬂows (per month)exceed the portion designated as being hedged, a postponement
or cancellation of sales transactions and corresponding cash
inﬂ ows have no impact on the hedging relationship. Similarly,
though to a lesser extent the Group hedges its expected foreign
currency exposure arising from US dollar cash outﬂows in thecommercial aircraft business on a ﬁrst outﬂow basis. For the noncommercial aircraft business the Group hedges in- and outﬂows
in foreign currencies from ﬁrmly committed or forecast sales andpurchase contracts. In the non-aircraft business, hedges are
typically contracted in lower volumes but follow similar ﬁrst ﬂow
logic or are designated based on agreed milestone payments.
The amount of the expected ﬂ ows to be hedged can cover
up to 100% of the equivalent of the net US dollar exposure at

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 75

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

inception. The coverage ratio is adjusted to take into accountmacroeconomic movements affecting the spot rates and interest
rates as well as the robustness of the commercial cycle. As
hedging instruments, the Group primarily uses foreign currency
forwards, foreign currency options, some synthetic forwards andat Airbus Commercial to a minor extent non-derivative ﬁnancial
instruments.
The Company also has foreign currency derivative instruments
which are embedded in certain purchase and lease contracts
denominated in a currency other than the functional currency ofthe signiﬁcant parties to the contract, principally USD and GBP.
Gains or losses relating to such embedded foreign currency
derivatives are reported in other ﬁnancial result if not designatedas hedging instrument. In addition, the Group hedges currency
risk arising from ﬁnancial transactions in other currencies thaneuro, such as funding transactions or securities.
Interest rate risk — The Group uses an asset-liability
management approach with the objective to limit its interest
rate risk. The Group undertakes to match the risk proﬁle of its
assets with a corresponding liability structure. The remaining
net interest rate exposure is managed through several types ofinterest rate derivatives in order to minimise risks and ﬁnancial
impacts. Hedging instruments that are speciﬁcally designated to
debt instruments have at the maximum the same nominal amounts
as well as the same maturity dates compared to the hedged item.
The cash and cash equivalents and securities portfolio of theGroup is invested in ﬁ nancial instruments such as overnight
deposits, certiﬁ cates of deposits, commercial papers, othermoney market instruments and short-term as well as mid-termbonds. The vast majority of related interest rate hedges qualify
for hedge accounting as either fair value hedges or cash ﬂow
hedges. For this portfolio, the Group holds on a regular basis an
Asset Management Committee which aims at limiting the interest
rate risk on a fair value basis through a value-at-risk approach.
Commodity price risk — The Group is exposed to risk relating
to ﬂ uctuations in the prices of commodities used in the supply
chain. The Group manages these risks in the procurement
process and to a certain extent uses derivative financial
instruments in order to mitigate the risks associated with thepurchase of raw materials.
Equity Price risk — The Group is to a small extent invested inequity securities mainly for operational reasons. Therefore, theGroup assesses its exposure towards equity price risk as limited.

76 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

Sensitivities of Market Risks — The approach used to measure
and control market risk exposure within the Group’s ﬁ nancial
instrument portfolio is amongst other key indicators the valueat-risk (“VaR”). The VaR of a portfolio is the estimated potential
loss that will not be exceeded on the portfolio over a speciﬁed
period of time (holding period) from an adverse market movementwith a speciﬁed conﬁdence level. The VaR used by the Group isbased upon a 95 percent conﬁdence level and assumes a 5-day
holding period. The VaR model used is mainly based on the socalled “Monte-Carlo-Simulation” method. Deriving the statisticalbehavior of the markets relevant for the portfolio out of market
data from the previous two years and observed interdependencies
between different markets and prices, the model generates a wide
range of potential future scenarios for market price movements.
The Group’s VaR computation includes the Group’s ﬁ nancial
debt, short-term and long-term investments, foreign currency
forwards, swaps and options, commodity contracts, ﬁ nancelease receivables and liabilities, foreign currency trade payables
and receivables, including intra-group payables and receivables
affecting Group proﬁt and loss.
Although VaR is an important tool for measuring market risk,
the assumptions on which the model is based give rise to some
limitations, including the following:¬ A ﬁve-day holding period assumes that it is possible to hedge
or dispose of positions within that period. This is considered to
be a realistic assumption in almost all cases but may not be thecase in situations in which there is severe market illiquidity fora prolonged period.
¬ A 95 percent conﬁdence level does not reﬂect losses that may
occur beyond this level. Even within the model used there is a
ﬁve percent statistical probability that losses could exceed thecalculated VaR.
¬ The use of historical data as a basis for estimating the statisticalbehavior of the relevant markets and ﬁ nally determining thepossible range of future outcomes out of this statistical behavior
may not always cover all possible scenarios, especially those ofan exceptional nature.
The Group uses VaR amongst other key figures in order todetermine the riskiness of its ﬁnancial instrument portfolio and inorder to optimise the risk-return ratio of its ﬁnancial asset portfolio.
Further, the Group’s investment policy deﬁnes a VaR limit for the
total portfolio of cash, cash equivalents and securities. The total
VaR as well as the different risk-factor speciﬁc VaR ﬁgures of thisportfolio are measured and serve amongst other measures asa basis for the decisions of the Asset Management Committee.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

A summary of the VaR position of the Group’s ﬁnancial instruments portfolio at 31 December 2013 and 31 December 2012 is as follows:

Total VaR

Equity price VaR

Currency VaR

Commodity price VaRInterest rate VaR

FX hedges for forecast transactions
or firm commitments

577

0

615

0

46

Financing liabilities, financial assets(incl. cash, cash equivalents, securities
and related hedges)

156

161

16

0

19

Finance lease receivables and liabilities,
foreign currency trade payables andreceivables

28

0

4

0

28

Commodity contracts

13

0

1

12

0

Diversification effect

(157)

0

(18)

0

(38)

All financial instruments

617

161

618

12

55

FX hedges for forecast transactions
or firm commitments

916

0

937

0

91

Financing liabilities, financial assets(incl. cash, cash equivalents, securities
and related hedges)

122

122

38

0

14

Finance lease receivables and liabilities,
foreign currency trade payables andreceivables

30

0

5

0

27

Commodity contracts

18

0

0

18

0

Diversification effect

(204)

0

(85)

0

(30)

All financial instruments

882

122

895

18

102

(In € million)

31 December 201331 December 2012

The decrease of total VaR compared to 31 December 2012 ismainly attributable to strong decrease of market volatilities, inparticular FX volatilities in combination with a decreased net foreignexchange portfolio in comparison to year end 2012. The Group
uses its derivative instruments almost entirely as well as someof its non-derivative ﬁnancial liabilities for hedging purposes. As
such, the respective market risks of these hedging instruments
are – depending on the hedges’ actual effectiveness – offset bycorresponding opposite market risks of the underlying forecast
transactions, assets or liabilities. Under IFRS 7 the underlying
forecast transactions do not qualify as ﬁnancial instruments andare therefore not included in the tables shown above. The VaRof the FX hedging portfolio in the amount of € 577 million (2012:€ 916 million) cannot be considered as a risk indicator for the Groupin the economic sense.
Further, the Group also measures VaR of the Group-internaltransaction risk arising on Group entities contracting in a currency
different from its functional currency affecting Group proﬁt andloss. However, these currency risks arise purely internally within
the Group and are, in economic terms, 100% compensated by
the corresponding currency ﬂuctuations recognised in a separate
component of equity when translating the foreign entity into theGroup’s functional currency. At 31 December 2013, the related
total VaR amounts to € 122 million (2012: € 153 million).

Liquidity Risk
The Group’s policy is to maintain sufﬁcient cash and cash equivalents
at any time to meet its present and future commitments as theyfall due. The Group manages its liquidity by holding adequate
volumes of liquid assets and maintains a committed credit facility(€ 3.0 billion as of 31 December 2013 and 2012, respectively) in
addition to the cash inﬂow generated by its operating business.
The liquid assets typically consist of cash and cash equivalents.
The Group continues to keep within the asset portfolio the focus
on low counterparty risk. In addition, the Group maintains a set ofother funding sources. Depending on its cash needs and market
conditions, the Group may issue bonds, notes and commercial
papers and may enter into security lending agreements. Adversechanges in the capital markets could increase the Group’s funding
costs and limit its ﬁnancial ﬂexibility.
Further, the management of the vast majority of the Group’s
liquidity exposure is centralised by a daily cash concentration
process. This process enables the Group to manage its liquidity
surplus as well as its liquidity requirements according to the actual
needs of its subsidiaries. In addition, Management monitors theGroup’s liquidity reserve as well as the expected cash ﬂows fromits operations based on a quarterly rolling cash forecast.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements(In € million)

Carrying
amountContractual
cash flows< 1 year

1 year– 2 years

2 years– 3 years

3 years– 4 years

4 years– 5 years

More than
5 years(17,258)(17,999)(12,282)(533)(1,577)

(475)

(951)

(2,181)

(974)

(765)

(373)

(305)

(91)

(32)

(11)

47

(18,232)(18,764)(12,655)(838)(1,668)

(507)

(962)

(2,134)(15,697)(16,430)(11,574)

(708)

(426)

(1,599)(416)(1,707)31 December 2013
Non-derivative financial liabilities
Derivative financial liabilities

Total
31 December 2012
Non-derivative financial liabilities
Derivative financial liabilities

Total(2,011)(2,168)

(753)

(678)

(514)

(126)

(28)

(69)

(17,708)(18,598)(12,327)(1,386)(940)(1,725)(444)(1,776)

The above table analyses the Group’s ﬁ nancial liabilities by
relevant maturity groups based on the period they are remaining
on Group Consolidated Statement of Financial Position to thecontractual maturity date.
The amounts disclosed are the contractual undiscounted cash
ﬂows, comprising all outﬂows of a liability such as repayments
and eventual interest payments.
Non-derivative ﬁ nancial liabilities comprise ﬁ nancing liabilities
at amortised cost and ﬁ nance lease liabilities as presented in
the tables of Note 34b) “Carrying amounts and fair values ofﬁnancial instruments”. Due to their speciﬁc nature, namely theirrisk-sharing features and uncertainty about the repayment dates,
the European Governments refundable advances are not includedin the above mentioned table with an amount of € 6,366 million(2012: € 6,112 million).

Credit Risk
The Group is exposed to credit risk to the extent of nonperformance by either its customers (e.g. airlines) or its
counterparts with regard to ﬁnancial instruments or issuers ofﬁnancial instruments for gross cash investments. However, theGroup has policies in place to avoid concentrations of credit risk
and to ensure that credit risk is limited.
As far as central treasury activities are concerned, credit risk
resulting from ﬁnancial instruments is managed on Group level.
Issuers of ﬁ nancial securities for investments on cash, cash
equivalents and securities as well as counterparties for derivativetransactions are limited to highly rated ﬁ nancial institutions,
corporates or sovereigns. For such ﬁ nancial transactions andinvestments the Group has set up a credit limit system to actively
manage and limit its credit risk exposure. This limit systemassigns maximum exposure lines to counterparts of ﬁ nancialtransactions and issuers, taking into account the lowest of their
credit ratings as published by Standard & Poors, Moody’s andFitch IBCA. Besides the credit rating, the limit system takes into
consideration fundamental data, as well as sectoral and maturity
allocations and further qualitative and quantitative criteria, e.g.
expected default frequencies, credit default swap spreads, etc.
The credit exposure of the Group is reviewed on a regular basis
and the respective limits are regularly monitored and updated.

78 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

Further, the Group constantly aims for maintaining a certain levelof diversiﬁcation in its portfolio between individual counterparties
and issuers as well as between ﬁnancial institutions, corporates
and sovereigns in order to avoid an increased concentration of
credit risk on only a few counterparties and issuers.
The Group is monitoring the performance of the individual ﬁnancial
instruments and the impact of the market developments on theirperformance. The Group has procedures in place that allow
to hedge, to divest from or to restructure ﬁnancial instruments
having undergone a downgrade of the counterparts’ credit ratingor showing an unsatisfactory performance. These measures aim
to protect the Group to a certain extent against credit risks fromindividual counterparts. Nevertheless, a potential negative impact
resulting from a market-driven increase of systematic credit risks
cannot be excluded.
European financial markets stabilise d substantially in 2013.
However, uncertainties regarding the creditworthiness ofsovereign debtors and respective ﬁ nancial institutions could
resurface, despite some efforts by governments and the European
community. Furthermore, the continuation of monetary policyin the US will likely have an impact on global ﬁnancial markets.
Therefore, adverse developments for credit and funding markets
cannot be excluded and this could have a number of effects on theGroup’s business, including:¬ continued de-leveraging as well as mergers and bankruptcies
of banks or other ﬁ nancial institutions, resulting in a smaller
universe of counterparties and lower availability of credit,
which may in turn reduce the availability of bank guarantees
needed by the Group for its businesses or restrict its ability to
implement desired foreign currency hedges; and¬ default of cash investment securities or derivative counterparties
and other ﬁnancial institutions, which could negatively impact
the Group’s treasury operations.
Group financial results could also be negatively affected
depending on gains or losses realised on the sale or exchangeof ﬁ nancial instruments, impairment charges resulting fromrevaluations of debt and equity securities and other investments,
interest rates, cash balances and changes in fair value ofderivative instruments.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

Sales of products and services are made to customers after
having conducted appropriate internal credit risk assessment. In
order to support sales, primarily at Airbus Commercial and ATR,
the Group may agree to participate in the ﬁnancing of customers,
on a case-by-case basis, directly or through guarantees
provided to third parties. In determining the amount and termsof the ﬁ nancing transaction, Airbus Commercial and ATR take
into account the airline’s credit rating and economic factors
reﬂ ecting the relevant ﬁ nancial market conditions, together withappropriate assumptions as to the anticipated future value ofthe ﬁ nanced asset.
The booked amount of ﬁnancial assets represents the maximum
credit exposure. The credit quality of ﬁ nancial assets can beassessed by reference to external credit rating (if available) orinternal assessment of customers’ (e.g. airlines’) creditworthinessby way of internal risk pricing methods.

The maximum exposure of the current portion of other long-term ﬁnancial assets, trade receivables, receivables from related companies,
loans and others included in current other ﬁnancial assets to credit risk at the end of the reporting periods is the following:(In € million)

2013

2012

Receivables, neither past due nor impaired(1)

5,911

5,567

49

39

Not past due following negotiations and not impaired
Receivables impaired individually
Receivables not impaired and past due ≤ 3 months

197

30

1,219

1,107

Receivables not impaired and past due >3 and ≤ 6 months

133

124

Receivables not impaired and past due >6 and ≤ 9 months

169

255

Receivables not impaired and past due >9 and ≤ 12 months

171

273

Receivables not impaired and past due > 12 months

411

807

8,260

8,202

Total(1)(1) Previous year’s figures adjusted due to PPA adjustments of prior year’s acquisitions.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statementsb) Carrying Amounts and Fair Valuesof Financial Instruments
The fair value of a ﬁnancial instrument is the price at which one party
would assume the rights and/or duties of another party. Fair valuesof ﬁnancial instruments have been determined with reference toavailable market information at the end of the reporting period
and the valuation methodologies discussed below. Considering

the variability of their value-determining factors and the volume ofﬁnancial instruments, the fair values presented herein may not be
indicative of the amounts that the Group could realise in a current
market environment.

The following tables present the carrying amounts and fair values of ﬁnancial instruments according to IAS 39 measurement categories
as of 31 December 2013 and 2012 respectively:

Fair Valuefor hedge
relations

Loans andReceivables andFinancial liabilities
at amortised cost

Available
for SaleFinancial
Instruments
Total

31 December 2013

Fair Value throughprofit or loss(In € million)

Held fortrading

Designated

Fair
value

Book
value

Fair
Value

¬ Equity investments(1)

-

-

-

611

611(2)

-

-

-

611

611

¬ Customer financings(3)

-

-

-

-

-

335

335

330

665

665

Amortised
Cost

Other(3)

Fair
Value

Book
Value

Fair
Value

AssetsOther investments and otherlong-term financial assets¬ Other loans

-

-

-

-

-

769

769

-

769

769

Trade receivables

-

-

-

-

-

7,239

7,239

-

7,239

7,239

238

-

2,472

-

-

-

-

-

2,710

2,710

Other financial assets¬ Derivative instruments(6)¬ Non-derivative instruments
Securities
Cash and Cash Equivalents

Total

-

-

-

-

-

923

923

-

923

923

-

4

-

6,886

6,886

-

-

-

6,890

6,890

-

2,933

-

2,130

2,130

2,702

2,702

-

7,765

7,765

238

2,937

2,472

9,627

9,627

11,968

11,968330

27,572

27,572

-

-

-

-

-

(2,340)(2,432)-(2,340)(2,432)

Liabilities
Financing liabilities¬ Issued bonds& commercial papers¬ Liabilities to banks& other financing liabilities

-

-

-

-

-

(3,089)(3,127)-(3,089)(3,127)¬ Finance lease liabilities(4)

-

-

-

-

-

-

-

(172)

(172)

(172)

¬ Derivative instruments(7)

(229)

-

(745)

-

-

-

-

-

(974)

(974)

¬ European Governments
refundable advances

-

-

-

-

-

(6,366)(6,366)(5)-(6,366)(6,366)

(180)

-

-

-

-

(1,105)(1,105)-(1,285)(1,285)(10,372)(10,372)-(10,372)(10,372)

Other financial liabilities¬ Other
Trade liabilities

Total

-

-

-

-

-

(409)

-

(745)

-

-

(23,272) (23,402)(172) (24,598) (24,728)(1) Other than those accounted for under the equity method.
(2) For certain unlisted equity investments price quotes are not available and fair values may not be reliably measurable using valuation techniques because the range of reasonable
fair value estimates is significant and the probabilities of the various estimates within the range cannot be reasonably assessed. These equity investments are accounted for at cost,
and their fair values as reported in the table above equal their carrying amounts. As of 31 December 2013, the aggregate carrying amount of these investments was € 359 million.
(3) This includes finance lease receivables, which are not assigned to an IAS 39 measurement category, but reported as “Other”.
(4) Finance lease liabilities are accounted for in accordance with IAS 17 in a manner that is similar, though not identical in all respects, to amortised-cost accounting under IAS 39.
They are therefore assigned to the category “Other”.
(5) The European Governments refundable advances of € 6,366 million are measured at amortised cost. Fair values cannot be reliably measured because their risk sharing natureand the uncertainty of the repayment dates give rise to a broad range of reasonable fair value estimates and make it impossible to reasonably assess the probabilities of the various
estimates within the range. This may change and reliable fair value measures become available as the related programmes approach the end of production.
(6) This includes credit value adjustments of €(37) million, of which €(25) million is recognised in OCI.
(7) This includes debit value adjustments of € 14 million, of which € 7 million is recognised in OCI.

80 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

Fair Valuefor hedge
relations

Available
for SaleLoans andReceivables andFinancial liabilities
at amortised cost
Amortised
Cost

31 December 2012

Fair Value throughprofit or loss(In € million)

Held fortrading

Designated

Fair
value

Book
value

Fair
Value

¬ Equity investments(1)

-

-

-

596

596(2)--¬ Customer financings(3)

-

-

-

-

-

364

364

¬ Other loans

-

-

-

-

-

863

863

-

-

-

203

203

-

-

-

-

-

-

6,788

¬ Derivative instruments(6)

422

-

1,145

-

-

¬ Non-derivative instruments

-

-

-

-

-

Other(3)

Fair
Value

Financial
Instruments
Total
Book
Value

Fair
Value

-

596

596

376

740

740

-

863

863

-

-

203

203

6,788

-

6,788

6,788

-

-

-

1,567

1,567

1,267

1,267

-

1,267

1,267

AssetsOther investments and otherlong-term financial assets¬ Part-time retirement &deferred compensation
assetsTrade receivables(8)

Other financial assets

Securities

-

9

-

8,306

8,306

-

-

-

8,315

8,315

Cash and Cash Equivalents

-

2,296

-

3,323

3,323

3,137

3,137

-

8,756

8,756

422

2,305

1,145 12,428 12,428

12,41912,419376

29,09529,095

-

-

-

-

-

(1,834)(2,072)-(1,834)(2,072)

Total

Liabilities
Financing liabilities¬ Issued bonds &commercial papers¬ Liabilities to banks &other financing liabilities

-

-

-

-

-

(2,764)(2,820)-(2,764)(2,820)

(4)

-

-

-

-

-

-

-

(181)

(181)

(181)

¬ Derivative instruments(7)

(278)

-

(1,782)

-

-

-

-

-

(2,060)(2,060)¬ European Governments
refundable advances

-

-

-

-

-

(6,112)(6,112)(5)-(6,112)(6,112)¬ Other

-

-

(5)

-

-

(996)

(996)

-

(1,001)(1,001)

Trade liabilities(8)

-

-

-

-

-

(9,921)(9,921)-(9,921)(9,921)(278)-(1,787)--¬ Finance lease liabilities
Other financial liabilities

Total(21,627) (21,921)(181) (23,873) (24,167)(1) Other than those accounted for under the equity method.
(2) For certain unlisted equity investments price quotes are not available and fair values may not be reliably measurable using valuation techniques because the range of reasonable
fair value estimates is significant and the probabilities of the various estimates within the range cannot be reasonably assessed. These equity investments are accounted for at cost,
and their fair values as reported in the table above equal their carrying amounts. As of 31 December 2012, the aggregate carrying amount of these investments was € 341 million.
(3) This includes finance lease receivables, which are not assigned to an IAS 39 measurement category, but reported as “Other”.
(4) Finance lease liabilities are accounted for in accordance with IAS 17 in a manner that is similar, though not identical in all respects, to amortised-cost accounting under IAS 39.
They are therefore assigned to the category “Other”.
(5) The European Governments refundable advances of € 6,112 million are measured at amortised cost. Fair values cannot be reliably measured because their risk sharing nature andthe uncertainty of the repayment dates give rise to a broad range of reasonable fair value estimates and make it impossible to reasonably assess the probabilitiesof the various estimates within the range. This may change and reliable fair value measures become available as the related programmes approach the end of production.
(6) This includes credit value adjustments of €(65) million, which is recognised in OCI.
(7) This includes debit value adjustments of € 40 million, which is recognised in OCI.
(8) Previous year’s figures adjusted due to PPA adjustments of prior year’s acquisitions.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

Financial Assets and Liabilities — Generally, fair values are
determined by using quoted prices in active markets for the sameor substantially the same instrument or if such prices are notavailable, by applying a valuation method, such as discounted
cash ﬂow analysis, using inputs other than quoted prices (such as
interest rates, foreign exchange rates, credit spreads or volatilities)
that are observable for the asset or liability.
For the fair value measurement of some instruments (such as
written puts on non-controlling interest), it may not be possible
to derive all the inputs required for applying a valuation methodfrom observable market data. In these situations, the fair value
measurements perforce reﬂ ect estimates partly derived fromthe Group’s own data and are based on assumptions that are
inherently judgmental and involve various limitations.
Unquoted other investments are measured at cost as their fairvalue is not reliably determinable.
The methodologies used are as follows:
Equity instruments — The fair values of listed equity instruments
reﬂect quoted market prices. The fair values of unlisted equity
instruments may not be reliably measured because the range ofreasonable fair value estimates is signiﬁcant and the probabilitiesof the various estimates within the range cannot be reasonably
assessed. Those instruments are measured at cost, and theircarrying amounts used as a proxy for fair value.
Customer ﬁnancing assets and other loans — The carrying
amounts reﬂected in the annual accounts are used as a proxyfor fair value.
Part-time retirement & deferred compensation assets — The
fair values of these instruments reﬂect the quoted market price atthe end of the reporting period.
Trade receivables and other receivables — The carrying
amounts reﬂected in the annual accounts are used as reasonableestimates of fair value because of the relatively short period
between the receivables’ origination and their maturity.
Securities — The fair values of securities reﬂ ect their quoted
market price at the end of the reporting period.

82 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

Cash and cash equivalents — Cash & cash equivalents include
cash in hand, cash in banks, checks, ﬁ xed deposits as wellas commercial papers and money market funds. The carrying
amounts reﬂected in the annual accounts are used as reasonableestimates of fair value because of the relatively short period
between the origination of the instrument and its maturity or due
date. Fair value of commercial papers is determined by discounting
future cash ﬂows using appropriate interest rates. The fair values ofmoney market funds are determined by reference to their quoted
market price.
Derivatives — The fair values of derivative instruments reﬂect
quoted market prices, where available, but in most cases are
determined using recognised valuation techniques such as optionpricing models and discounted cash ﬂow models. The valuation isbased on observable market data such as currency rates, currency
forward rates, interest rates and yield curves, commodity forward
prices as well as price and rate volatilities obtained from recognised
vendors of market data. Furthermore, to the extent that these
instruments are subject to master netting arrangements and similar
agreements and managed on the basis of net credit exposure,their fair values reﬂect credit and debit value adjustments basedon the net long or net short position that the Group has with eachcounterparty.
Financing liabilities — The fair values disclosed for ﬁnancing
liabilities, other than those of issued bonds and issued commercial
papers, are determined based on Level 2 input by discounting
scheduled or expected cash ﬂ ows using appropriate market
interest rates. The fair values disclosed for the issued EMTN and
US$ bonds reﬂect public price quotations that qualify as Level 1
input. For issued commercial papers, the carrying amounts
reﬂected in the annual accounts are used as reasonable estimatesof fair value because of the relatively short period between theorigination of these instruments and their maturity.
Trade Liabilities and Current Other Financial Liabilities — For
the same reason, carrying amounts are used as reasonable fairvalue approximations for trade liabilities and current other ﬁnancial
liabilities.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

Fair Value Hierarchy
The fair value hierarchy consists of the following levels:¬ Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities;¬ Level 2: inputs other than quoted prices that are observable for the asset or liability, either directly (i.e. as prices) or indirectly(i.e. derived from prices); and¬ Level 3: inputs for the asset or liability that are not based on observable market data.
The following tables allocate the ﬁnancial assets and liabilities measured at fair value to the three levels of the fair value hierarchy asof 31 December 2013 and 2012 respectively:

31 December 2013

Level 1

Level 2

Level 3

Total

252

-

-

252

-

2,676

34

2,710

6,876

14

-

6,890

(In € million)

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

3,777

1,286

-

5,063

10,905

3,976

34

14,915Derivative instruments

-

(974)

-

(974)

Other liabilities

-

-

(180)

(180)

-

(974)

(180)

(1,154)

Balance atother
1 January profit comprehensive
2013 or loss
income Purchases Issues Settlements Reclassification

Balance at
31 December
2013

Total
Financial liabilities measured at fair value

Total
The development of ﬁnancial instruments of Level 3 is as follows:
Total gains or losses in

Financial assets andliabilities on Level 3
Financial assets
Derivative instruments¬ Commodity swap
agreements¬ Other derivative
instruments

41

35

-

-

-

(50)

-

26

8

(1)

1

-

-

-

-

8

49

34

1

-

-

(50)

-

34

¬ Written put options on
non-controlling interests

-

-

1

-

(101)

3

(32)(1)(129)¬ Earn-out agreements

-

1

-

-

-

-

(52)(2)

(51)

Total
Financial liabilities
Other liabilities¬ Other

Total

(5)

-

-

-

-

5

-

0

(5)

1

1

-

(101)

8

(84)

(180)

(1) Reclassification of € 32 million for written put options on non-controlling interest issued in 2012 from financial liabilities recognised at amortised cost during 2013.
(2) € 52 million of earn-outs for entities acquired in 2012 have been recorded within Other Provisions of 2012 Consolidated Financial Statements and have been reclassified to Level 3
financial liabilities at fair value through profit or loss.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

31 December 2012

Level 1

Level 2

Level 3

Total

458

-

-

458

-

1,518

49

1,567

8,205

110

-

8,315

(In € million)

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

5,413

206

-

5,619

14,076

1,834

49

15,959Derivative instruments-(2,060)-(2,060)

Other liabilities

-

-

(5)

(5)

-

(2,060)(5)(2,065)otherBalance at
1 January profit comprehensive
income Purchases Issues Settlements Reclassification2012 or loss

Balance at
31 December
2012

Total
Financial liabilities measured at fair value

Total
The development of ﬁnancial instruments of Level 3 is as follows:
Total gains or losses in

Financial assets andliabilities on Level 3
Financial assets
Derivative instruments¬ Commodity swap
agreements

39

39

-

-

-

(37)

-

41

¬ Other derivative
instruments

0

(1)

2

-

-

-

7

8

39

38

2

-

-

(37)

7

49

(56)

(1)

(3)

-

-

62

(7)

(5)

56

(1)

(3)

-

-

62

(7)

(5)

Total
Financial liabilities
Other liabilities

Total

Financial Assets classified as Level 3

Financial Liabilities classified as Level 3

The Financial assets measured at fair value that are classiﬁed
as Level 3 mainly consist of short-term commodity contracts
whose notional amounts vary with the actual volumes of certain
commodity purchases made by the Group in speciﬁc months.
For fair value measurement purposes, the notional amounts,
being the unobservable input, are set with reference to monthly
commodity volumes that management expects to purchase basedon planning forecasts. The fair values are otherwise determinedusing observable market data including quoted interest rates andpricing information obtained from recognised vendors of market
data.

The Financial liabilities measured at fair value that are classiﬁed as
Level 3 consist of several written put options on non-controllinginterest (“NCI puts”) of Group subsidiaries. The fair values of theseNCI puts (i.e. the net present value of their redemption amount on
exercise) are derived from a discounted cash ﬂow analysis of thelatest operating planning ﬁgures of the respective entities.

A deviation of 10% of actual monthly volumes purchased fromexpected monthly volumes purchased would increase or decrease(depending on whether actual volumes are 10% more or 10% lessthan expected volumes) the total Level 3 fair value of these shortterm commodity contracts by € 3 million.

84 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

The fair value measurements are performed on an annual basis
in line with the operative planning cycle. For interim ﬁ nancial
statements an analysis of the input parameters is performed for
determination of signiﬁcant changes since the last measurement
date that would call for an adjustment of the value of the put options.
Apart from the detailed ﬁve-year operating planning ﬁgures, there
are two unobservable inputs that signiﬁcantly affect the values of
the NCI puts: the weighted average cost of capital (”WACC”) used
to discount the forecasted cash ﬂows and the growth rate used todetermine the terminal value. WACC and growth rates as well as
operating planning ﬁgures that were used for the determination

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statementsof the level 3 fair values are derived from the input parameters asapplied for the impairment test as disclosed in Note 14 “Intangible
Assets – Goodwill Impairment Tests”. An increase (decrease) of the
discount rates by 50 basis points results in a decrease (increase) of
the NCI put values by € 5 million (€ 6 million). An increase (decrease)in the growth rates by 50 basis points increases (decreases) theNCI put values by € 5 million (€ 4 million) respectively.

Another element of ﬁ nancial liabilities measured at fair value
classiﬁed as Level 3 are earn-out payments that have been agreed
with former shareholders of entities acquired by the Group in
business combinations. Fair Value measurement is based on the
expectation regarding the achievement of deﬁned target ﬁguresby the acquired entity or its ability to close identiﬁed customer
contracts.

Financial Assets designated at fair value through profit or loss
The following types of financial assets held at 31 December 2013 and 2012 respectively are designated at fair value through proﬁt or loss:(In € million)

Nominal amount at
initial recognition asof 31 December 2013

Nominal amount at
Fair value as ofinitial recognition as
Fair value as of
31 December 2013 of 31 December 2012 31 December 2012

Designated at fair value through profit
or loss at recognition:
Money Market Funds (accumulating)Foreign currency Funds of Hedge Funds

Total

2,933

2,933

2,296

2,296

8

4

14

9

2,941

2,937

2,310

2,305

The accumulating Money Market Funds have been designated at fair value through proﬁt or loss as their portfolio is managed and theirperformance is measured on a fair value basis.
In addition, the Group invests in Money Market Funds paying interest on a monthly basis. The fair value of those funds corresponds totheir nominal amount at initial recognition date amounting to € 844 million (2012: € 3,117 million).
Investments in foreign currency Funds of Hedge Funds have been designated at fair value through proﬁt or loss.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statementsc) Potential Effect of Set-off Rights onrecognised Financial Assets and Liabilities
The Group reports all its ﬁnancial assets and ﬁnancial liabilities
on a gross basis. With each derivative counterparty there are
master netting agreements in place providing for the immediateclose-out of all outstanding derivative transactions and payment of
the net termination amount in the event a party to the agreement
defaults or another deﬁned termination event occurs. Furthermore,securities lending transactions are accounted for as collateralised
borrowings. As a result, the securities pledged as collateral continue

to be recognised on the balance sheet and the amount of cash
received at the outset of the transaction is separately recognised
as a ﬁnancial liability. The following tables set out the potential
effect of master netting agreements and collateralised borrowings
on the Group’s ﬁnancial position, separately for ﬁnancial assets
and ﬁnancial liabilities that were subject to such agreements as of
31 December 2013 and 31 December 2012, respectively.

31 December 2013(In € million)

Derivative instruments

Gross amountsof recognised
Gross amounts financial assets setof recognised off in the financial
financial assets
statements
2,627

31 December 2013(In € million)

Gross amountsof recognised
financialliabilities

0

Net amounts offinancial assets
presented in
the financial
statements
2,627

Gross amountsof recognised Net amounts offinancial financial liabilities
liabilities set off
presented inin the financial
the financial
statements
statements

Related amounts not set
off in the statementof financial position
Financial
instruments

Cash
Collateral
received

Net amount

(953)

(9)

1,665

Financial
instruments

Cash
CollateralpledgedNet amount0

0

Related amounts not set
off in the statementof financial position

Derivative instruments

954

0

954

(954)

Security lendingtransactions

608

0

608

(608)(1)

0

0

1,562

0

1,562

(1,562)

0

0

Total

(1) The fair value of the securities pledged as collateral in securities lending transactions is € 613 million (including accrued interest). Collateral is pledged under terms that customarily
apply in securities lending transactions with financial institutions.

31 December 2012(In € million)

Derivative instruments

Gross amountsof recognised
Gross amounts financial assets setof recognised off in the financial
financial assets
statements
1,518

31 December 2012(In € million)

Derivative instruments

Gross amountsof recognised
financialliabilities

0

Net amounts offinancial assets
presented in
the financial
statements
1,518

Gross amountsof recognised Net amounts offinancial financial liabilities
liabilities set off
presented inin the financial
the financial
statements
statements

2,011

86 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

0

2,011

Related amounts not set
off in the statementof financial position
Financial
instruments

Cash
Collateral
received

Net amount(1,518)00

Financial
instruments

Cash
CollateralpledgedNet amount(1,311)0700

Related amounts not set
off in the statementof financial position

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statementsd) Notional Amounts of Derivative Financial Instruments
The contract or notional amounts of derivative ﬁnancial instruments shown below do not necessarily represent amounts exchangedby the parties and, thus, are not necessarily a measure for the exposure of the Group through its use of derivatives.
The notional amounts of foreign exchange derivative ﬁnancial instruments are as follows, speciﬁed by year of expected maturity:

Year ended 31 December 2013

Remaining period

Total

2014

2015

2016

2017

2018

2019

2020

2021+

Net forward sales contracts

16,925

14,42912,072

6,942

1,797

(295)

(302)

(1,290)50,278

FX swap contracts

2,000

0

128

0

0

0

0

0

2,128

(In € million)

Foreign Exchange Contracts:

Year ended 31 December 2012

Remaining period

Total

2013

2014

2015

2016

2017

2018

2019

2020+

16,034

16,201

13,680

9,422

4,663

1,079

(118)

1

60,962

Purchased USD call options

407

0

0

0

0

0

0

0

407

Purchased USD put options

880

0

0

0

0

0

0

0

880

Written USD call options

881

0

0

0

0

0

0

0

881

(In € million)

Foreign Exchange Contracts:
Net forward sales contracts
Foreign Exchange Options:

Other Purchased call options
FX swap contracts

5

0

0

0

0

0

0

0

5

1,689

211

0

172

0

0

0

0

2,072

The notional amounts of interest rate contracts are as follows:Year ended 31 December 2013

Remaining period

Total(In € million)

2014

2015

2016

2017

2018

2019

2020

2021+

Interest Rate Contracts-Nominals

1,212

833

1,414

30

974

945

0

942

6,350

163

0

0

0

0

0

0

0

163

Interest rate future contracts-Nominals

Year ended 31 December 2012

Remaining period

Total(In € million)

2013

2014

2015

2016

2017

2018

2019

2020

2021+

Interest Rate Contracts

1,044

1,297

922

1,513

146

595

1,065

0

980

7,562

Please also refer to Note 26 “Financing Liabilities”.
Notional amounts of commodity contracts:

Year ended 31 December 2013

Remaining period

Total(In € million)

2014

2015

2016

2017

2018

Commodity contracts

318

164

125

82

6

Year ended 31 December 2012

Remaining period

695

Total

(In € million)

2013

2014

2015

2016

2017

Commodity contracts

332

167

126

89

51

765

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statementse) Derivative Financial Instruments and Hedge Accounting Disclosure
The following interest rate curves are used in the determination of the fair value in respect of the derivative ﬁnancial instruments as of
31 December 2013 and 2012:31 December 2013

EUR

USD

GBP

Interest rate in %6 months

0.34

0.41

0.74

1 year

0.51

0.58

0.95

5 years

1.11

1.75

2.14

10 years

2.03

3.03

2.99

31 December 2012

EUR

USD

GBP

0.16

0.52

0.62

1 year

0.47

0.88

0.96

5 years

0.63

0.82

1.02

10 years

1.45

1.74

1.86

Interest rate in %6 months

The development of the foreign exchange rate hedging instruments recognised in AOCI as of 31 December 2013 and 2012 is as follows:(In € million)

Equity attributable to equity
owners of the parent

1 January 2012
Unrealised gains and losses from valuations, net of tax
Transferred to profit or loss for the period, net of tax

Non-controllinginterests

Total(1,773)2(1,771)

718

(1)

717

638

0

638

Changes in fair values of hedging instruments recorded in AOCI, net of tax

1,356

(1)

1,355

31 December 2012 / 1 January 2013

(417)

1

(416)

1,235

(3)

1,232

Unrealised gains and losses from valuations, net of tax

306

0

306

Changes in fair values of hedging instruments recorded in AOCI, net of tax

Transferred to profit or loss for the period, net of tax

1,541

(3)

1,538

31 December 2013

1,124

(2)

1,122

In the year 2013 an amount of €-450 million (in 2012: €-917 million) was reclassiﬁed from equity mainly to revenues resulting frommatured cash ﬂow hedges. No material ineffectiveness arising from hedging relationship has been determined.
Corresponding with its carrying amounts, the fair values of each type of derivative ﬁnancial instruments is as follows:
31 December

2013

2012

AssetsLiabilities

AssetsLiabilities

2,346

(634)

959

(1,484)Foreign currency contracts – not designated in a hedge relationship

89

(20)

164

(51)

Interest rate contracts – Cash Flow Hedges

2

(13)

0

(81)

Interest rate contracts – Fair Value Hedges

124

(61)

178

(171)

Interest rate contracts – not designated in a hedge relationship

102

(129)

144

(144)

Commodity contracts – not designated in a hedge relationship

26

(80)

41

(32)

Embedded foreign currency derivatives – Cash Flow Hedges

0

(37)

0

(46)

Embedded foreign currency derivatives – not designated in a hedge relationship

21

0

32

(2)

2,710

(974)

1,518

(2,011)(In € million)

Foreign currency contracts – Cash Flow Hedges

Total

88 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statementsf)

Net Gains or Net Losses

The Group’s net gains or net losses recognised in proﬁt or loss in 2013 and 2012 respectively are as follows:

2013

2012

Held for trading

5

44

Designated on initial recognition

1(1)(In € million)

Financial assets or financial liabilities at fair value through profit or loss:

Available-for-sale financial assets

90Loans and receivables

14

18

Financial liabilities measured at amortised cost

(58)

(27)

Interest income from ﬁnancial assets or ﬁnancial liabilities through proﬁt or loss is included in net gains or losses.
Net gains or net losses of loans and receivables contain among others impairment losses.
Net gains or net losses of € 11 million (2012: € 189 million) are recognised directly in equity relating to available-for-sale ﬁnancial assets.

g) Total Interest Income and Total Interest Expenses
In 2013, the total interest income amounts to € 167 million (in 2012: € 238 million) for ﬁnancial assets which are not measured at fairvalue through proﬁt or loss. For ﬁnancial liabilities which are not measured at fair value through proﬁt or loss €-497 million (in 2012:€-522 million) are recognised as total interest expenses. Both amounts are calculated by using the effective interest method.

h) Impairment Losses
The following impairment losses on ﬁnancial assets are recognised in proﬁt or loss in 2013 and 2012 respectively:

2013

2012

Equity instruments

(27)

(40)

Customer financings

(19)

(4)

(In € million)

Other investments and other long-term financial assets

Other loans

(8)

(10)

Trade receivables

(59)

(50)

Securities

(0)

(2)

(113)

(106)

Total

35. Share-Based Paymenta) Stock Option Plans (SOP) and Long-Term
Incentive Plans (LTIP)
Based on the authorisation given to it by the Shareholders’ Meetings(see dates below), the Group’s Board of Directors approved (seedates below) stock option plans in 2006, 2005, 2004 and 2003.
These plans provide to the Members of the Executive Committee
as well as to the Group’s senior management the grant of options
for the purchase of EADS shares.
For all of the Group’s Stock Option Plans, the granted exercise
price was exceeding the share price at grant date.
In 2013, 2012, 2011, 2010, 2009 and 2008, the Board of Directorsof the Company approved the granting of Performance Units andRestricted Units in the Company. The grant of so called “units” will
not physically be settled in shares (except with regard to Group
Executive Committee Members) but represents a cash settled
plan in accordance with IFRS 2.

Due to the partial conversion of LTIP plans 2009-2011 endof December 2012 and of LTIP plan 2012 end of February 2013,
some Performance Units granted to the Executive Committee
Members have been transformed to equity-settled plans. The
grant date for the LTIP 2009-2011 is 31 December 2012, while
LTIP 2012 is 28 February 2013. The fair value at grant datecorresponds to € 29.50 for LTIP 2009-2011 and € 39.70 for LTIP
2012. 328,801 units for the LTIP 2009-2011 and 75,975 units for
the LTIP 2012 were transformed into shares at the respective grant
dates. These shares are outstanding as of 31 December 2013
(for details please refer to the remuneration section of Note 36“Related party transactions”).

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

In 2013, compensation expense for Long-Term Incentive Plans was recognised for an amount of € 439 million (in 2012: € 163 million).
The fair value of units granted per vesting date is as follows (LTIP plan 2013):

Expected vesting date

FV of restricted and Performance Units to be settled in cashIn € (per unit granted)

May 2017

49.75

November 201748.90

May 2018

47.77

November 201846.92

As of 31 December 2013 provisions of € 473 million (2012: € 253 million) relating to LTIP have been recognised.
The lifetime of the Performance and Restricted Units is contractually ﬁxed (see within the description of the respective tranche). The
measurement is based on an Option Pricing Model which is, next to other market data, mainly affected by the share price as of theend of the reporting period (€ 55.81 as of 31 December 2013) and the lifetime of the units.
The principal characteristics of the options as well as Performance and Restricted Units as at 31 December 2013 are summarised in
the various tables below:

Fifth tranche
Date of Shareholders’ Meeting
Grant date
Number of options granted
Number of options outstanding
Total number of eligible employees
Exercise date

Sixth tranche

6 May 2003

6 May 2003

10 October 2003

8 October 2004

7,563,980

7,777,280-

1,157,993

1,491

1,495

50% of options may be exercised after a period of two years and four weeks fromthe date of grant of the options; 50% of options may be exercised as of the third anniversaryof the date of grant of the options (subject to specific provisions contained in the Insider
Trading Rules — see “Part 2 / 3.1.3 Governing Law — Dutch Regulations”).

Expiry date

9 October 2013

Conversion right

7 October 2014
One option for one share

Vested100%

100%(1)

Exercise price€ 15.65€ 24.32

Exercise price conditions

110% of fair market value of the shares at the date of grant

Number of exercised options

6,802,256

4,058,265(1) As regards the sixth tranche, vesting of part of the options granted to the Group’s top Executives was subject to performance conditions. As a result, part of these conditional
options have not vested and were therefore forfeited during the year 2007.

90 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

Seventh tranche
Date of Shareholders’ Meeting

11 May 2005

Grant date

9 December 2005

Number of options granted

7,981,760

Number of options outstanding

2,449,997

Total number of eligible beneficiaries

Exercise date

1,608
50% of options may be exercised after a period of two years from the date of grantof the options; 50% of options may be exercised as of the third anniversary of the date of
grant of the options (subject to specific provisions contained in the Insider Trading Rules— see “Part 2 / 3.1.3 Governing Law — Dutch Regulations”). As regards the seventh tranche,
part of the options granted to the EADS top Executives are performance related.

Expiry date

8 December 2015

Conversion right

One option for one share

Vested100%(1)

Exercise price€ 33.91

Exercise price conditions

110% of fair market value of the shares at the date of grant

Number of exercised options

2,836,097(1) As regards the seventh tranche, vesting of part of the options granted to the Group’s top Executives was subject to performance conditions. As a result, part of these conditional
options have not vested and were therefore forfeited during the year 2008.

Eighth tranche
Date of Shareholders’ Meeting

4 May 2006

Grant date18 December 2006

Number of options granted

1,747,500

Number of options outstanding

706,125

Total number of eligible beneficiaries
Date from which the options may be exercised

221
50% of options may be exercised after a period of two years from the date of grantof the options; 50% of options may be exercised as of the third anniversary of the dateof grant of the options (subject to specific provisions contained in the Insider
Trading Rules — see “Part 2 / 3.1.3 Governing Law — Dutch Regulations”).

Date of expiration

16 December 2016

Conversion right

One option for one share

Vested100%

Exercise price€ 25.65

Exercise price conditions

110% of fair market value of the shares at the date of grant

Number of exercised options

840,375

Tenth tranche
Grant date

13 November 2008
Performance and Restricted Unit plan

Number of units granted

Performance Units

Restricted Units

2,192,740

801,860

00Number of units outstanding
Total number of eligible beneficiaries

Vesting dates

Number of vested units(1)1,684
The Performance and Restricted Units will vest if the participant is still employed
by a Group company at the respective vesting dates and, in the caseof Performance Units, upon achievement of mid-term business performance.
Vesting schedule is made up of 4 payments over two years:¬ 25% in May 2012;¬ 25% in November 2012;¬ 25% in May 2013;¬ 25% in November 2013.
2,821,644

756,050(1) Re-evaluation was based on 136% performance achievement for the remaining outstanding Performance Units.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

Eleventh tranche
Grant date

13 November 2009
Performance and Restricted Unit plan

Number of units granted(1)

Number of units outstanding(2)Performance Units

Restricted Units

2,697,740

928,660

1,623,906

447,550

Total number of eligible beneficiaries

1,749
The Performance and Restricted Units will vest if the participant is still employed
by a Group company at the respective vesting dates and, in the caseof Performance Units, upon achievement of mid-term business performance.
Vesting schedule is made up of 4 payments over two years:¬ 25% in May 2013;¬ 25% in November 2013;¬ 25% expected in May 2014;¬ 25% expected in November 2014.

Vesting dates

Number of vested units

1,515,588

453,550(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement;
up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of the Group) during the performance period,
the Board can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition).
(2) Re-evaluation is based on 123% performance achievement for the remaining outstanding Performance Units.

Twelfth tranche
Grant date

10 November 2010
Performance and Restricted Unit plan
Performance Units

Restricted Units

Number of units granted(1)2,891,540

977,780

Number of units outstanding

2,758,640

943,060

Total number of eligible beneficiaries

1,711
The Performance and Restricted Units will vest if the participant is still employed
by a Group company at the respective vesting dates and, in the caseof Performance Units, upon achievement of mid-term business performance.
Vesting schedule is made up of 4 payments over two years:¬ 25% expected in May 2014;¬ 25% expected in November 2014;¬ 25% expected in May 2015;¬ 25% expected in November 2015.

Vesting dates

Number of vested units

2,800

1,400

(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximumof 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of the Group) during the performance period, the Board candecide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition).

Thirteenth tranche
Grant date

9 November 2011
Performance and Restricted Unit plan
Performance Units

Number of units granted(1)

Number of units outstanding

2,588,950

877,750

2,532,050

864,150

Total number of eligible beneficiaries

Vesting dates

Number of vested units

Restricted Units

1,771
The Performance and Restricted Units will vest if the participant is still employed
by a Group company at the respective vesting dates and, in the caseof Performance Units, upon achievement of mid-term business performance.
Vesting schedule is made up of 4 payments over two years:¬ 25% expected in May 2015;¬ 25% expected in November 2015;¬ 25% expected in May 2016;¬ 25% expected in November 2016.
2,500

3,750

(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximumof 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of the Group) during the performance period, the Board candecide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition).

92 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

Fourteenth tranche
Grant date

13 December 2012
Performance and Restricted Unit plan

Number of units granted(1), (2)

Number of units outstanding

Performance Units

Restricted Units

2,121,800

623,080

2,106,160

616,260

Total number of eligible beneficiaries

Vesting dates

Number of vested units

1,797
The Performance and Restricted Units will vest if the participant is still employed
by a Group company at the respective vesting dates and, in the caseof Performance Units, upon achievement of mid-term business performance.
Vesting schedule is made up of 4 payments over two years:¬ 25% expected in May 2016;¬ 25% expected in November 2016;¬ 25% expected in May 2017;¬ 25% expected in November 2017.
1,000

2,800

(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximumof 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of the Group) during the performance period, the Board candecide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition).
(2) Apart from the 150% performance achievement level, the share price at the vesting dates will be limited for performance as well as Restricted Units to € 55.66, which corresponds
to 200% of the reference share price. Overall, the pay-out for Performance Units is limited to a total amount of 250% of the units originally granted, each valued with the reference
share price of € 27.83.

Fifteenth tranche
17 December 2013(3)Grant date

Performance and Restricted Unit plan
Performance Units

Restricted Units

Number of units granted(1), (2)1,241,020

359,760

Number of units outstanding

1,241,020

359,760

Total number of eligible beneficiaries

Vesting dates

Number of vested units

1,709
The Performance and Restricted Units will vest if the participant is still employed
by a Group company at the respective vesting dates and, in the caseof Performance Units, upon achievement of mid-term business performance.
Vesting schedule is made up of 4 payments over two years:¬ 25% expected in May 2017;¬ 25% expected in November 2017;¬ 25% expected in May 2018;¬ 25% expected in November 2018.
--(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximumof 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of the Group) during the performance period, the Board candecide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition).
(2) Apart from the 150% performance achievement level, the share price at the vesting dates will be limited for performance as well as Restricted Units to € 92,34, which corresponds
to 200% of the reference share price. Overall, the pay-out for Performance Units is limited to a total amount of 250% of the units originally granted, each valued with the reference
share price of € 46.17.
(3) Date, when the vesting conditions were determined.

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2.5 Other Notes to the Consolidated Financial Statements

The following table summarises the development of the number of stock option and shares:
Number of Options

Fifth Tranche

Options granted

Balance at
1 January

Exercised

Forfeited

Balance at
31 December

2003

7,563,980---

7,563,980

2004-

7,563,980(9,600)(97,940)

7,456,440

2005-

7,456,440(875,525)(87,910)

6,493,005

2006-

6,493,005(1,231,420)(31,620)

5,229,965

2007-

5,229,965(386,878)(24,214)

4,818,873

2008-

4,818,873(14,200)(75,080)

4,729,593

2009-

4,729,593-(113,740)

4,615,853

2010-

4,615,853(208,780)(168,120)

4,238,953

2011-

4,238,953(1,044,665)(28,300)

3,165,988

2012-

3,165,988(1,632,503)(30,650)

1,502,835

2013-

1,502,835(1,398,685)(104,150)

0

Number of Options

Options granted

Balance at
1 January

Exercised

Forfeited

Balance at
31 December

2004

7,777,280---

7,777,280

2005-

7,777,280-(78,220)

7,699,060

2006-

7,699,060(2,400)(96,960)

7,599,700

Sixth Tranche

2007

-

7,599,700-(1,358,714)

6,240,986

2008-

6,240,986-(183,220)6,057,766

2009-

6,057,766-(41,060)

6,016,706

2010-

6,016,706-(419,680)

5,597,026

2011-

5,597,026(3,500)(324,526)

5,269,000

2012-

5,269,000(1,903,845)(48,542)3,316,613

2013-

3,316,613(2,148,520)(10,100)

1,157,993

Number of Options

Seventh Tranche
2005

Options granted

Balance at
1 January

Exercised

Forfeited

Balance at
31 December

7,981,760---

7,981,760

2006-

7,981,760-(74,160)

7,907,600

2007-

7,907,600-(142,660)

7,764,940

2008-

7,764,940-(1,469,989)

6,294,951

2009-

6,294,951-(49,520)

6,245,431

2010-

6,245,431-(149,040)

6,096,391

2011-

6,096,391-(295,713)

5,800,678

2012-

5,800,678-(466,983)

5,333,695

2013-

5,333,695(2,836,097)(47,601)

2,449,997

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2.5 Other Notes to the Consolidated Financial Statements

Number of Options

Eighth Tranche

Options granted

Balance at
1 January

Exercised

Balance at
31 December

Forfeited2006

1,747,500---

1,747,500

2007-

1,747,500-(5,500)1,742,000

2008-

1,742,000-(64,000)

1,678,000

2009-

1,678,000-(11,000)

1,667,000

2010-

1,667,000-(16,500)

1,650,500

2011-

1,650,500-(11,000)

1,639,500

2012-

1,639,500(350,000)(87,500)

1,202,000

2013-

1,202,000(490,375)(5,500)706,125

25,070,520

11,355,143(14,536,993)(6,219,412)

4,314,115

Total options for all Tranches

The weighted average share price at the date of exercise for share options exercised in 2013 was € 41.74 (2012: € 29.16).
The development of the number of units (including units to be paid out in shares) is set out below:
Number of Units

Tenth Tranche

Units granted

Balance at
1 January

VestedForfeited

Re-evaluation(1)Balance at
31 December

2,170,340

Performance Units in 2008

2,192,740---

Performance Units in 2009-

2,192,740(1,120)(21,280)-

2,192,740

Performance Units in 2010-

2,170,340(2,520)(29,120)-

2,138,700

Performance Units in 2011-

2,138,700(1,960)(31,920)-

2,104,820

Performance Units in 2012-

2,104,820(1,417,356)(29,764)

751,892

1,409,592

Performance Units in 2013-

1,409,592(1,398,688)(10,904)-0

Restricted Units in 2008

801,860

-

-

-

-

801,860

Restricted Units in 2009-

801,860-(6,480)-795,380

Restricted Units in 2010-

795,380(2,940)(10,480)-

781,960

Restricted Units in 2011-

781,960(840)(19,700)-

761,420

Restricted Units in 2012-

761,420(378,755)(5,090)-377,575

Restricted Units in 2013-

377,575(373,515)(4,060)-02,994,600

1,787,167(3,577,694)(168,798)

751,8920

Total units(1) Re-evaluation is based on 136% performance achievement for the remaining outstanding Performance Units at 1st vesting.

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2.5 Other Notes to the Consolidated Financial Statements

Number of Units

Eleventh Tranche

Balance at
1 January

Units granted

VestedForfeited

Re-evaluation(1)Balance at
31 December

Performance Units in 2009

2,697,740

-

-

-

-

2,697,740

Performance Units in 2010-

2,697,740(4,250)(29,400)-

2,664,090

Performance Units in 2011-

2,664,090(3,600)(48,110)-2,612,380

Performance Units in 2012-

2,612,380(1,300)(31,160)-

2,579,920

Performance Units in 2013-

2,579,920(1,506,438)(42,204)

592,628

1,623,906

Restricted Units in 2009

928,660

-

-

-

-

928,660

Restricted Units in 2010-

928,660(400)(1,400)-926,860

Restricted Units in 2011-

926,860(3,000)(13,500)-

910,360

Restricted Units in 2012-

910,360(760)(5,780)-903,820

Restricted Units in 2013-

903,820(449,390)(6,880)-447,550

3,626,400

3,483,740(1,969,138)(178,434)

592,628

2,071,456

Total units(1) Re-evaluation is based on 123% performance achievement for the remaining outstanding Performance Units at 1st vesting.

Number of Units

Twelfth Tranche

Units granted

Balance at
1 January

VestedBalance at
31 December

Forfeited

Performance Units in 2010

2,891,540--(1,400)2,890,140

Performance Units in 2011-

2,890,140-(46,700)

2,843,440

Performance Units in 2012-

2,843,440-(8,200)2,835,240

Performance Units in 2013-

2,835,240(2,800)(73,800)

2,758,640

Restricted Units in 2010

977,780

-

-

(460)

977,320

Restricted Units in 2011-

977,320-(20,920)

956,400

Restricted Units in 2012-

956,400(700)(8,540)947,160

Restricted Units in 2013-

947,160(700)(3,400)943,060

3,869,320

3,782,400(4,200)(163,420)

3,701,700

Total units

Number of Units

Thirteenth Tranche

Units granted

Additional
Grant(1)

Performance Units in 2011

2,588,950

Performance Units in 2012-

Performance Units in 2013

Balance at
1 January

Vested---2,588,950-

14,9002,559,950

Restricted Units in 2011

877,750-

Restricted Units in 2012--

Restricted Units in 2013

Total units

Forfeited

Balance at
31 December--

2,588,950-(29,000)

2,559,950(2,500)(40,300)

2,532,050---

877,750

877,750(625)-

877,125-2,475

877,125(3,125)(12,325)

864,150

3,466,700

17,3753,437,075(6,250)(81,625)

3,396,200(1) Corresponding to additional Performance and Restricted Units granted for the plan 2011.

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2.5 Other Notes to the Consolidated Financial Statements

Number of Units

Balance at
1 January

VestedForfeited

Balance at
31 December

Fourteenth Tranche

Units granted

Performance Units in 2012

2,119,160(1)

-

-

-

2,119,160

Performance Units in 2013-

2,119,160(1,000)(12,000)

2,106,160

Restricted Units in 2012

621,980(2)

-

-

-

621,980

Restricted Units in 2013-

621,980(2,800)(2,920)616,260

2,741,140

2,741,140(3,800)(14,920)

2,722,420

Total units(1) Cancellation of 2,640 Performance Units from 2012 units granted.
(2) Cancellation of 1,100 Restricted Units from the 2012 units granted.

The outstanding units for the ﬁfteenth tranche as at 31 December 2013 correspond to the number of units at grant date.

b) Employee Stock Ownership Plan (ESOP)In 2013 (and 2012), the Board of Directors approved an additional
ESOP. For the 2012 and 2011 ESOP, eligible employees were able
to purchase a ﬁxed number of previously unissued shares at fairvalue (10, 30, 50, 100, 200 or 400 shares). The Group matchedeach ﬁxed number of shares with a number of free EADS sharesbased on a determining ratio (10, 20, 30, 43, 67 and 107 freeshares, respectively). During a lockup period of at least one year
or, provided the purchase took place in the context of a mutualfund (regular saving plan), of ﬁve years, employees are restrictedfrom selling the shares, but have the right to receive all dividends
paid. Employees who purchased directly EADS shares have in
addition the ability to vote at the Annual Shareholder Meetings. The
subscription price was equal to the closing price at the Paris stock
exchange on 29 May 2013 and amounted to € 44.20 (in 2012 thesubscription price for ESOP was equal to the closing price at theParis stock exchange on 31 May 2012 and amounted to € 27.07).
Investing through the mutual fund led to a price which corresponds
to the average price at the Paris stock exchange during the 20days immediately preceding 29 May 2013 (in 2012 it was thehigher of the subscription price or the average opening price atthe Paris stock during the 20 trading days immediately preceding
31 May 2012), resulting in a price of € 42.02 (in 2012: € 28.55).
The Group issued and sold 2,133,245 ordinary shares (in 2012:
2,177,103 ordinary shares) with a nominal value of € 1.00 in total.
Compensation expense (excluding social security contributions)of € 31 million (in 2012: € 18 million) was recognised in connection
with ESOP, based on a fair value of € 43.00 at grant date.
Besides the annual ESOP, a free share plan was implemented
during the third quarter 2013 due to the new shareholding
structure and governance of the Group and to reward all eligible
employees for the recent and future Group performance. Eacheligible employee is granted ten free shares in EADS resulting ina distribution of 1,461,540 shares in November 2013. Such shareswere bought from the market and therefore had not any impact
on the issued share capital. Compensation expense (excluding
social security contributions) of € 69 million (in 2012: € 0 million)
was recognised for the free share plan, based on a fair value of€ 47.45 at grant date.

36. Related Party Transactions
Related parties — On 5 December 2012, the Group had announced
that their Board of Directors and core shareholders had agreed on a
far-reaching change of the Company’s shareholding structure andgovernance. This agreement aimed at normalising and simplifying
the governance of the Group while securing a shareholding
structure that allows France, Germany and Spain to protect theirlegitimate strategic interests. On 27 March 2013, the shareholders
approved in an Extraordinary General Meeting all resolutions thatwere required to authorise the Completion (“Consummation”)
of the Multiparty Agreement announced on 5 December 2012.
On 2 April 2013, the Completion (“Consummation”) of theMultiparty Agreement occurred, following the authorisation by

the shareholders. Previously existing shareholder agreements
were terminated. From this date onwards the Group considers,that governmental shareholders are not meeting the deﬁnition ofa related party under IAS 24. Consequently the Group no longer
reports receivable, payable and other liability or loan transactions
with the former shareholders as of 31 December 2013.
Before 2 April 2013, transactions with related parties included theFrench government, Daimler AG, Lagardère Group and the Spanish
government (SEPI) and its related entities. The Group has enteredinto various transactions with related entities that have all been
carried out in the normal course of business.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

The following table discloses the related party transactions on a full Group share as of 31 December 2013:(In € million)

Sales of goods
Purchases
and servicesof goods and Receivables
Payablesand otherservices anddue as ofdue as ofincome in other expense in 31 December 31 December
2013
2013
2013
2013

French government

Other Liabilities /Loans
received as of
31 December
2013

632

24

N/A

N/A

N/A

Spanish government (SEPI)

7

0

N/A

N/A

N/A

Daimler AG

0

3

N/A

N/A

N/A

Lagardère Group

0

0

N/A

N/A

N/A

Total transactions with shareholder

639

27

N/A

N/A

N/A

Total transactions with Frenchgovernment related entities

31

1,299

N/A

N/A

N/A

Total transactions with joint ventures

2,470

157

265

44

877

Total transactions with associates

537

172

30

26

93

As of 31 December 2013, the Group granted guarantees of € 443 million to Air Tanker Group in the UK, a loan to Daher-Socata SA in
the amount of € 24 million. The share of the Group in OnAIR N.V. was disposed of during 2013. The Group sold some land & buildings
to MBDA. The selling price was € 76 million, of which 50% were outstanding at the end of 2013.
The following table discloses the related party transactions on a full Group share as of 31 December 2012:(In € million)

Sales of goods
and services
and otherincome in2012

French government

Purchases ofgoods andReceivables
Payablesservices anddue as ofdue as ofother expense in 31 December 31 December
2012
2012
2012

1,347

Other
Liabilities /Loans
received as of
31 December
2012(1)

91

706

6

2,852

Spanish government (SEPI)

63

0

20

0

610

Daimler AG

1

15

1

0

0

Lagardère Group

0

0

0

0

0

1,411

106

727

6

3,462

97

4,143(2)

84

205

0

Total transactions with joint ventures

2,192

46

612

41

1,000

Total transactions with associates

488

97

13

7

24

Total transactions with shareholder
Total transactions with Frenchgovernment related entities(1) Including European Governments refundable advances from the French and Spanish government.
(2) 2012 figures restated in accordance with 2013 presentation.

As of 31 December 2012, the Group granted guarantees to the Spanish State in the amount of € 52 million mainly relating to advancepayments received and performance bonds and in the amount of € 452 million to Air Tanker g roup in the UK, a loan to Daher-Socata
SA in the amount of € 24 million and a loan to OnAIR B.V. in the amount of € 9 million.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statements

Remuneration — The annual remuneration and related compensation costs of all of key management personnel, i.e. Non-Executive
Board Members, Executive Board Members and Members of the Executive Committee, as expensed in the respective year can besummarised as follows:

Remuneration of key management personnel

2013

2012

(In € million)

Total

Total

23.1

21.4

Executive Committee, incl. Executive Board Member(s)(1)
Salaries and other short-term benefits (including bonuses)(2)Post-employment benefit costs(3)

Share-based remuneration (“LTIP award”)
Termination benefits
Other benefits (incl. company cars, insurance)
Social charges

4.6

6.3

24.3

11.1

0

3.1

0.5

0.4

4.5

4.0

57.0

46.3

1.8

1.7

Non-Executive Board Members
Short-term benefits(4)Total expense recognised

1.8

1.7

58.8

48.0

(1) The Chief Executive Officer was the sole Executive Board Member in office as at 31 December of the respective year. Figures account for pro rata periods considering the changeof the Group CEO from Louis Gallois to Tom Enders during 2012.
(2) Bonuses included in short-term benefits are based on expected performance achievement as at the respective balance sheet date.
(3) Aggregated amount of current service and interest costs related to the defined benefit obligation and contributions related to defined contribution plans accounted for duringrespective fiscal year.
(4) Non-Executive Board Members remuneration includes social charges.

Amount of the pension deﬁned beneﬁt obligation of the Executive
Committee, including the Chief Executive Ofﬁcer, at 31 December
2013 was € 54.4 million (2012: € 44.8 million). The disclosed deﬁned
beneﬁ t obligation reﬂ ects the total outstanding balance for all
Executive Committee Members subject to a deﬁned beneﬁt planand in charge at the end of the respective balance sheet date.
Outstanding short-term beneﬁts (bonuses) at year end 2013 for
Executive Committee Members based on estimated performanceachievement at year end was € 12.1 million (2012: € 9.2 million).
Other benefits include expenses for Executive Committee
Members’ company cars and accident insurance. There were no
outstanding liabilities at 31 December 2013 or 2012 respectively.
The share-based payment expenses result from not yet forfeitedunits granted to the Executive Committee Members under theGroup’s Long-Term Incentive Plans (“LTIPs”) which are re-measured
to fair value as far as they are cash settled. In 2013, the Members of
the Executive Committee were granted 203,000 Performance Units(2012: 275,900 units); the fair value of these Performance Unitsat grant date was € 10.9 million (2012: € 8.1 million). Fair value ofoutstanding LTIP balances end of 2013 for all Executive Committee
Members was € 24.8 million (2012: € 18.4 million).
In order to strengthen the alignment of the Group’s top managementwith the long-term growth objectives of the Company, the Board
has requested Group Executive Committee Members to acquire
and to hold in the future EADS shares with a value equal to theindividual annual contractual remuneration consisting of “annual

base salary” and “annual variable remuneration (at 100% target
level)”. The Board has not set a speciﬁc time delay to acquire
the requested number of EADS shares but expects Executive
Committee Members to use speciﬁcally gains from the Group’s
Long-Term Incentive Plans to achieve this goal in a timely manner.
Also basing on the intention of the Board of Directors to increase
the long-term commitment of Executive Committee Members
to the success of the Company the Board has authorise d the
Executive Committee Members to opt for partial conversion of theotherwise cash settled LTIP plans into share settled plans at eachgrant date of any new LTIP requiring a minimum conversion rate
into equity settlement of 25% of total granted Performance Units.
By end of December 2012 each Executive Committee Member
individually determined the split of equity and cash settlement foreach of the formerly granted LTIP plans 2009, 2010 and 2011. By
the end of February 2013, Executive Committee Members madethe same choice for the 2012 plan. By end of February 2014,
Executive Committee Members will accordingly decide on the split
for the 2013 LTIP plan. After overall performance assessment ofeach of the plans, the four vesting dates as determined at initial
grant date apply to all cash settled Performance Units, however,units converted into equity settlement only vest at the last of thefour vesting dates of the plan.
Due to the partial conversion of LTIP plans 2009-2011 endof December 2012 and of LTIP plan 2012 end of February 2013
total outstanding LTIP liability for Executive Committee Membersof € 5.0 million has been reclassiﬁed to equity in 2013.

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2.5 Other Notes to the Consolidated Financial Statements

PARTIAL CONVERSION OF GRANTED UNITS UNDER CASH-SETTLED LTIPS INTO EQUITY-SETTLED PLANS
BY EXECUTIVE COMMITTEE MEMBERS

LTIP 2009(1), (2)LTIP 2010(1), (3)LTIP 2011(1)LTIP 2012(4)Total number of units granted

343,180

304,400

263,500

275,900

Number of cash-settled units

210,644

193,550

178,085

199,925

Number of equity-settled units

132,536

110,850

85,41575,975(1) Partial conversion of cash settled plan into equity settled plan as at 31 December 2012.
(2) Including performance achievement of 123% for Performance Units under 2009 LTIP.
(3) Based on estimated performance achievement of 100%.
(4) Partial conversion of cash settled plan into equity settled plan as at 28 February 2013.

As all Group Stock Option Plans (“SOP”) vested before 2012 no
personnel expense was recognised in 2013 or in 2012.
In the case of contract termination, the Executive Committee
Members, including the Chief Executive Ofﬁcer, are entitled to anindemnity equal to 1.5 times the Total Annual Income (deﬁned as
Base Salary and target Annual Variable remuneration). This rule
does however not apply if the contractor mandate is terminatedfor cause or if the Executive Committee Member has reachedretirement age.

of Directors has the discretion to invoke the extension of the
non-competition clause. The compensation for each year thatthe non-competition clause applies is equal to 50% of the last
Total Annual Income (deﬁned as Base Salary and Annual Variable
remuneration most recently paid) with respect to applicable local
legal requirements if any.
Past LTIP awards are maintained for good leavers, such as in thecase of retirement or if a mandate is not renewed by the Company
without cause. The vesting of LTIP awards is not accelerated. LTIP
awards are forfeited for Executives who leave the Company of theirown initiative, but this is subject to review by the Board of Directors.

In 2013, no termination package has been granted to any Executive
Committee Member. In 2012, four Members left the Executive
Committee: Louis Gallois, former Chief Executive Ofﬁcer; HansPeter Ring, former Chief Financial Ofﬁcer; Jussi Itävuori, former
Head of Human Re sources and Stefan Zoller, former Head of
Cassidian Division. Termination indemnity recognised in 2012 was€ 3.1 million of which € 1.5 million were paid in 2012 and remainder
was outstanding at year-end and was paid in 2013. There are no
outstanding balances for other compensation elements for neither
year-end 2013 or for 2012.

Furthermore in 2013, the Company recognised € 2.4 million ofhigh salary taxes for Executive Committee Members subject toFrench tax jurisdictions under the Taxe sur les Hauts Revenus,
requiring for 2013 and 2014 exceptional 50% charges on individual
annual remuneration exceeding € 1 million. This amount reﬂects
the Group’s best estimate of the chargeable amount by end of
2013; further details from French Tax authorities are expected in
the course of 2014.

The Executive Committee Members’ contracts include a noncompetition clause which applies for one year, and can beextended at the Company’s initiative for a further year. The Board

For more information in respect of remuneration of Directors,
see “Notes to the Company Financial Statements – Note 11:
Remuneration”.

37. Interest in Joint Ventures
The Group’s principal investments in joint ventures and the proportion of ownership are included in Appendix “Information on principal
investments”. Joint ventures are consolidated using the proportionate method.
The following amounts represent the Group’s proportional share of the assets, liabilities, income and expenses of the signiﬁcant joint
ventures (MBDA, Atlas, ATR, and Signalis) in aggregate:(In € million)

Non-current assets
Current assets

2013

2012

572

557

2,544

2,526

538

522

Current liabilities

2,557

2,567

Revenues

1,958

1,928

152

148

Non-current liabilities

Profit for the period

The Group’s proportional share in contingent liabilities of these joint ventures as of 31 December 2013 amounts in aggregate to€ 329 million (2012: € 495 million).

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2.5 Other Notes to the Consolidated Financial Statements

38. Earnings per Share
Basic earnings per share — Basic earnings per share are calculated by dividing proﬁt for the period attributable to equity owners of
the parent (Net income) by the weighted average number of issued ordinary shares during the year, excluding ordinary shares purchasedby the Group and held as treasury shares.

2013

2012

2011

Profit for the period attributable to equity owners of the parent (Net income)(1)€ 1,465 million€ 1,197 million€ 980 million

Weighted average number of ordinary shares

792,466,862

819,378,264

812,507,288€ 1.85€ 1.46€ 1.21

Basic earnings per share(1)(1) Previous years’ figures are adjusted due to revised IAS 19.

Diluted earnings per share — For the calculation of the diluted
earnings per share, the weighted average number of ordinary
shares is adjusted to assume conversion of all potential ordinary
shares. The Group’s categories of dilutive potential ordinary
shares are stock options and share-settled Performance Units
for Executive Committee Members relating to Long-Term Incentive
Plans for 2009 to 2012. Since in 2013 the average price of EADSProfit for the period attributable to equity owners of the parent (Net income)(1)Weighted average number of ordinary shares (diluted)
Diluted earnings per share(1)shares exceeded the exercise price of the 5th, 6th, 7th and 8th stock
option plan as well as the share-settled Performance Units (in 2012:
the 5th, 6th and the 8th stock option plan, in 2011: the 4th and the
5th stock option plan), 1,660,950 shares related to stock options (in2012: 1,173,667 shares, in 2011: 1,194,624 shares) were consideredin the calculation of diluted earnings per share.

2013

2012

2011

€ 1,465 million€ 1,197 million€ 980 million

794,127,812

820,551,931

813,701,912€ 1.84€ 1.46€ 1.20(1) Previous years’ figures are adjusted due to revised IAS 19.

39. Number of Employees
The number of employees at 31 December 2013 is 144,061 as compared to 140,405 at 31 December 2012.

40. Events after the Reporting Date
On 2 January 2014, the Group has been rebranded as “Airbus
Group”. The rebranding is the ﬁ rst step of the reorganisation
under which the Group reduces its number of Divisions fromformerly four to three Divisions and also renames two: (i) Airbus(focussing on commercial aircraft activities); (ii) Airbus Defence andSpace (integrating the Group’s defence and space activities from
Cassidian, Astrium, and Airbus Military); and (iii) Airbus Helicopters(comprising all commercial and military helicopter activities).
The Company’s legal name change into Airbus Group N.V. shallbe submitted to the Company’s Annual General Meeting of
Shareholders scheduled for end of May 2014. The Company’s
subsidiaries may change their legal names in line with the Group’s
rebranding.

On 21 January 2014, Airbus Group signed an agreement with
Astronics Corporation to sell substantially all of the assets andliabilities of its EADS North America Test and Services (“EADS
NA T&S”) business located in Irvine, California. EADS NA T&S is aprovider of highly engineered automatic test systems, subsystems
and instruments for the semi-conductor, consumer electronics,
commercial aerospace and defense industries. The closing of thetransaction is yet subject to approval by the US antitrust authorities(Hart-Scott-Rodino Act). The sale was approved by the Group’s
appropriate body only in January 2014, shortly prior to the signingof the agreement and thus was deemed to be classiﬁ ed as adisposal group only subsequent to the closing date.
These Consolidated Financial Statements have been authorisedfor issuance by the Board of Directors on 25 February 2014.

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2.6 Appendix “Information on Principal
Investments” — Consolidation Scope
2013

%

2012

%

Company

Head office100.00F

100.00AD Grundstückgesellschaft mbH & Co. KG

Pullach i. Isartal (Germany)

F

60.00

F

60.00

Aero Equipement S.A.S.

Boulogne-Billancourt (France)F

100.00F

100.00Aerolia S.A.S.

Toulouse (France)F

100.00AFS Cayman II Ltd.

Cayman Islands

F

100.00F

100.00

AIFS (Cayman) Ltd.

Cayman Islands

F

100.00F

100.00

AIFS Cayman Liquidity Ltd.

Cayman Islands

F

100.00F

100.00

AIFS Leasing Company Ltd.

Dublin (Ireland)

F

70.00

F

70.00

Airbus (Beijing) Engineering Centre Company Ltd.

Beijing (China)F100.00Airbus (China) Enterprise Management& Services Company Ltd.

Beijing (China)
Tianjin (China)

Airbus Commercial
FF

100.00F

100.00F

100.00Airbus (TIANJIN) Delivery Center Ltd.

P

51.00

P

51.00

Airbus (TIANJIN) Final Assembly Company Ltd.

Tianjin (China)

P

51.00

P

51.00

Airbus (TIANJIN) Jigs & Tools Company Ltd.

Tianjin (China)F100.00F

100.00Airbus (TIANJIN) Logistics Company Ltd.

Tianjin (China)F100.00Airbus Alabama, Inc.

Mobile, AL (USA)F

100.00F

100.00Airbus Americas Customer Services, Inc.

Herndon, VA (USA)F

100.00F

100.00Airbus Americas Engineering, Inc.

Herndon, VA (USA)F

100.00F

100.00Airbus Americas Sales, Inc.

Herndon, VA (USA)F

100.00F

100.00Airbus Americas, Inc.

Herndon, VA (USA)F

100.00F

100.00Airbus China Ltd.

Hong Kong (China)F100.00Airbus China Ltd., Beijing Representative Office

Beijing (China)F100.00F

100.00Airbus Corporate Jet Centre S.A.S. (ACJC)

Toulouse (France)F

100.00Airbus Filton Limited

Filton (United Kingdom)F

100.00F

100.00Airbus Financial Service Unlimited

Dublin (Ireland)

F

100.00F

100.00Airbus Flight Hour Services Ltd.

Dublin (Ireland)

E

50.00

Airbus Freighter Conversion GmbH

Dresden (Germany)F

100.00F

100.00Airbus Invest II S.A.S.

Blagnac (France)F

100.00F

100.00Airbus Invest S.A.S.

Blagnac (France)F

100.00F

100.00Airbus Operations GmbH

Hamburg (Germany)F

100.00F

100.00Airbus Operations Ltd.

Filton (United Kingdom)F

100.00F

100.00Airbus Operations S.A.S.

Toulouse (France)F

100.00F

100.00Airbus Operations S.L.

Madrid (Spain)F

100.00F

100.00Airbus ProSky S.A.S.

Blagnac (France)

100.00Airbus Real Estate Premium AEROTEC
Nord GmbH & Co. KG

Pullach i. Isartal (Germany)F

100.00FF

100.00F

100.00Airbus S.A.S.

Blagnac (France)F

100.00F

100.00Airbus Transport International S.N.C. (ATI)

Blagnac (France)F

100.00Airbus UK Limited

Filton (United Kingdom)

P

50.00

P

50.00

ATR Eastern Support Pte. Ltd.

Singapore (Singapore)

F: Fully consolidated
P: Proportionate consolidated
E: At equity consolidated
The stated percentage of ownership is related to EADS N.V.
* Regarding associated investments, only the parent company is stated in this list.

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2013

%

2012

%

Company

Head office

P

50.00

P

50.00

ATR G.I.E.

Blagnac (France)

P

50.00

P

50.00

ATR India Customer Support Pte. Ltd.

Bangalore (India)

P

50.00

P

50.00

ATR International S.A.S.

Blagnac (France)

P

50.00

P

50.00

ATR North America, Inc.

Washington, VA (USA)

P

50.00

P

50.00

ATR North American Training Center, Inc.

Montreal (Canada)

P

50.00

P

50.00

ATR South African Training Center (Proprietary) Ltd.

Illovo (South Africa)

P

50.00

P

50.00

ATR Training Center S.A.R.L.

Blagnac (France)

P

50.00

P

50.00

P

50.00

F

100.00FF

100.00F
F

ATRiam Capital Ltd.

Dublin (Ireland)

ATRium Mauritius Ltd

Mauritius Island

100.00Aviateur Finance Ltd.

Dublin (Ireland)

100.00Aviateur International Ltd.

Dublin (Ireland)

100.00Aviateur Leasing Ltd.

Dublin (Ireland)

E

33.33

Blue Sky Alliance GmbH

Kaltenkirchen (Germany)F

100.00F

100.00CIMPA GmbH

Hamburg (Germany)F

100.00F

100.00CIMPA Ltd.

Bristol (United Kingdom)F

100.00F

100.00CIMPA S.A.S.

Blagnac (France)F

100.00F

100.00Composites Atlantic Ltd.

Lunenburg (Canada)F

100.00F

100.00CTC GmbH

Stade (Germany)F

100.00F

100.00EADS ATR S.A.

Colomiers (France)F

100.00F

100.00EADS Composites Aquitaine S.A.

Salaunes (France)F

100.00F

100.00EADS Maroc Aviation

Casablanca (Morocco)

EADS Real Estate Premium AEROTEC
Augsburg GmbH & Co. KG

Augsburg (Germany)F

100.00F

100.00F

100.00F

100.00EADS Sogerma S.A.S.

Rochefort (France)

F

65.00

F

100.00Elbe Flugzeugwerke GmbH

Dresden (Germany)

E

30.00

E

30.00

Elson Ltd.

Hong Kong (China)F100.00F

100.00

Eltra Aeronautics Pte Ltd.

Singapore (Singapore)

F

99.00

F

99.00

Eltra Aeronautique S.A.S.

Marseille (France)

F

49.00

F

49.00

Eltra Beijing Outou

Beijing (China)F100.00F

100.00

Eltra Holdings Pte Ltd.

Singapore (Singapore)F

100.00F

100.00

Eltra Services Ltd.

Hong Kong (China)

P

50.00

P

50.00

Hua-Ou Aviation Support Centre Ltd.

Beijing (China)

P

50.00

P

50.00

Hua-Ou Aviation Training Centre Ltd.

Beijing (China)F100.00F

100.00IFR Skeyes SAS

Colomiers (France)F

100.00F

100.00Metron Aviation, Inc.

Dulles, VA (USA)F

100.00F

100.00Metron Holdings, Inc.

Dulles, VA (USA)

E

30.05

OnAir N.V.

Amsterdam (Netherlands)

E

33.00

E

33.00

Pesola Ltd.

São José dos Campos (Brazil)

F

74.90

F

74.90

PFW Aerospace AG

Speyer (Germany)F

100.00F

100.00Premium AEROTEC GmbH

Augsburg (Germany)F

100.00F

100.00

Satair A/S

Kastrup (Denmark)F

100.00F

100.00

Satair Pte Ltd Beijing Representative Office

Beijing (China)F100.00F

100.00

Satair Pte Ltd.

Singapore (Singapore)F

100.00F

100.00

Satair UK Ltd.

Heston (United Kingdom)F

100.00F

100.00

Satair USA, Inc.

Atlanta, GA (USA)F

100.00SC Premium Aerotec SRL

Brasov (Romania)

F: Fully consolidated
P: Proportionate consolidated
E: At equity consolidated
The stated percentage of ownership is related to EADS N.V.
* Regarding associated investments, only the parent company is stated in this list.

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2013

%

2012

%

Company

Head office

E

30.00

E

30.00

Sinelson Aero

Tianjin (China)

E

34.00

E

34.00

Sopecaero Ltd.

São José dos Campos (Brazil)

F

100.00F

100.00Star Real Estate S.A.S.

Toulouse (France)

E

29.50

E

29.50

Telair International Services Pte Ltd.

Singapore (Singapore)

90.00

Airbus Military S.L.

Madrid (Spain)

Additionally consolidated are 21 SPEs.
Airbus Military
F

90.00

F

E

40.00

E

40.00

AirTanker Holdings Ltd.*

London (United Kingdom)F

100.00F

100.00EADS CASA North America, Inc.

Herndon (USA)F

100.00F

100.00EADS CASA S.A. (Unit: Airbus Military)

Madrid (Spain)

F

78.54

F

78.54

EADS PZL “WARSZAWA-OKECIE” S.A.

Warsaw (Poland)

F

100.00F

100.00AA Military Maintenance Pty. Ltd.

Brisbane (Australia)

F

100.00F

100.00American Eurocopter Corp.

Grand Prairie, TX (USA)F

100.00F

100.00Australian Aerospace Composites Pty Ltd.

Sydney (Australia)

F

100.00F

100.00Australian Aerospace Ltd.

Bankstown (Australia)

F

100.00F

100.00EADS SECA S.A.S.

Le Bourget (France)

F

75.00

F

75.00

Eurocopter South East Asia Pte. Ltd.

Singapore (Singapore)

Eurocopter

F

75.50

F

100.00F

100.00Eurocopter (Thailand) Limited

Bangkok (Thailand)

Eurocopter Canada Ltd.

Fort Erie, ON (Canada)F

100.00F

100.00Eurocopter Chile S.A.

Santiago (Chile)F

100.00F

100.00Eurocopter Cono Sur S.A.

Montevideo (Uruguay)

F

99.99

F

100.00Eurocopter de Mexico Planta Queretaro S.A. de C.V.

Queretaro (Mexico)F

100.00F

100.00Eurocopter de Mexico S.A.

Mexico D.F. (Mexico)F

100.00F

100.00Eurocopter Deutschland GmbH

Donauwörth (Germany)F

100.00F

100.00Eurocopter Deutschland Real Estate GmbH & Co. KG

Pullach i. Isartal (Germany)F

100.00F

100.00Eurocopter España S.A.

Madrid (Spain)F

100.00F

100.00Eurocopter Financial Services Ltd.

Dublin (Ireland)

F

100.00F

100.00Eurocopter Holding S.A.

Marignane (France)F

100.00F

100.00Eurocopter International Pacific Holdings Pty. Ltd.

Bankstown (Australia)

F

100.00F

100.00Eurocopter International Pacific New Zealand Pty. Ltd.

Sydney (Australia)

F

100.00F

100.00Eurocopter International Services Ltd.

Dublin (Ireland)

F

100.00F

90.00

Eurocopter Japan Co. Ltd.

Tokyo (Japan)

F

100.00F

90.00

Eurocopter Japan RG Co. Ltd.

Tokyo (Japan)

F

100.00F

100.00Eurocopter Malaysia Sdn. Bhd.

Subang Selongor (Malaysia)

F

100.00F

100.00Eurocopter Malaysia Simulation Center Sdn. Bhd.

Subang Selongor (Malaysia)

F

95.00

F

95.00

Eurocopter S.A.S.

Marignane (France)F

100.00F

100.00Eurocopter South Africa Pty. Ltd.

Lanseria (South Africa)

F

100.00F

100.00Eurocopter Training Services S.A.S.

Marignane (France)F

100.00F

100.00Eurocopter UK Ltd.

Oxford (United Kingdom)F

100.00F

100.00Eurovertol LLC

Moscow (Russia)

F

85.66

F

85.66

Helibras – Helicopteros do Brasil S.A.

Itajuba (Brazil)

F

50.00

F

50.00

Heliescuela S.A.P.I. de C.V.

Mexico D.F. (Mexico)

E

25.00

E

25.00

HFTS Helicopter Flight Training Services GmbH

Hallbergmoos (Germany)F

100.00F

100.00

Korean Helicopter Development Support Ltd.

Sacheon-si (South Korea)

F: Fully consolidated
P: Proportionate consolidated
E: At equity consolidated
The stated percentage of ownership is related to EADS N.V.
* Regarding associated investments, only the parent company is stated in this list.

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2013

%

2012

%

Company

Head officeF

100.00F

100.00Motorflug Baden-Baden GmbH

Baden-Baden (Germany)F

100.00F

100.00Spaero Trade GmbH

Rheinmünster (Germany)F

100.00F

100.00The Sigma Aerospace Pension Trustee Ltd.

Croydon (United Kingdom)F

100.00F

100.00

Vector Aerospace (UK-Holdings) Ltd.

Aberdeen (United Kingdom)F

100.00F

100.00

Vector Aerospace Africa Pty. Ltd.

Midrand (South Africa)

F

100.00

Vector Aerospace Asia Pte Ltd (Singapore)

Singapore (Singapore)F

100.00F

100.00

Vector Aerospace Australia Pty. Ltd.

Brisbane (Australia)

F

100.00

Vector Aerospace Brasil Servicos
E Monutencao De Aeronaves Ltda

São Paulo (Brazil)

F

100.00F

100.00

Vector Aerospace Corporation

Toronto (Canada)F

100.00F

100.00

Vector Aerospace Engine Services UK Ltd.

Croydon (United Kingdom)F

100.00F

100.00

Vector Aerospace Engine Services-Atlantic, Inc.

Toronto (Canada)F

100.00F

100.00

Vector Aerospace Financial Services Ltd.

Dublin (Ireland)

F

67.70

F

67.70

Vector Aerospace Helicopter Services California, Inc.

Sacramento, CA (USA)F

100.00F

100.00

Vector Aerospace Helicopter Services, Inc.

Toronto (Canada)F

100.00

Vector Aerospace Holding S.A.S.

Marignane (France)F

100.00F

100.00

Vector Aerospace Holdings Ltd.

Toronto (Canada)F

100.00F

100.00

Vector Aerospace International Ltd.

Gosport (United Kingdom)F

100.00F

100.00

Vector Aerospace USA Holdings, Inc.

Carson City, NV (USA)F

100.00F

100.00

Vector Aerospace USA, Inc.

Montgomery, AL (USA)

E

24.01

E

24.01

Advanced Lithium Systems Europe S.A.

Athens (Greece)

F

100.00F

100.00Apsys S.A.

Suresnes (France)F

100.00

Arkoon Network Security

Lyon (France)

E

14.7

Atlas Defence Technology Sdn. Bhd.

Kuala Lumpur (Malaysia)

Cassidian

P

49.00

P

49.00

Atlas Elektronik Finland Oy

Helsinki (Finland)

P

49.00

P

49.00

Atlas Elektronik GmbH

Bremen (Germany)

P

49.00

P

49.00

Atlas Elektronik Pty. Ltd.

Sydney (Australia)

P

49.00

P

49.00

Atlas Elektronik UK (Holdings) Ltd.

Newport (United Kingdom)

P

49.00

P

49.00

Atlas Elektronik UK Ltd.

Newport (United Kingdom)

P

49.00

P

49.00

Atlas Hydrographic GmbH

Bremen (Germany)

P

49.00

P

49.00

Atlas Maridan ApS

Horsholm (Denmark)

P

49.00

P

49.00

Atlas Naval Engineering Company

Kyungnam (South Korea)

E

24.01

E

24.01

Atlas Naval Support Centre Ltd.

Bangkok (Thailand)

P

49.00

P

49.00

Atlas Naval Systems Malaysia Sdn. Bhd.

Kuala Lumpur (Malaysia)

P

49.00

P

49.00

Atlas North America LLC

Virginia Beach, VA (USA)

F

43.89

F

43.89

Aviation Defense Service S.A.

Saint-Gilles (France)

P

37.50

P

37.50

Bayern-Chemie Gesellschaft für flugchemische Antriebe mbH

Aschau / Inn (Germany)

F

51.00

F

51.00

Cassidian Airborne Solutions GmbH

Bremen (Germany)F

100.00F

100.00Cassidian Aviation Training Services S.A.S.

Paris (France)F

100.00F

100.00Cassidian Belgium N.V.

Oostkamp (Belgium)

F

100.00F

100.00Cassidian Communications GmbHUlm (Germany)F

100.00F

100.00Cassidian Cybersecurity GmbH

Ottobrunn (Germany)F

100.00F

100.00Cassidian Cybersecurity S.A.S.

Elancourt (France)F

100.00F

100.00Cassidian Finland Oy

Helsinki (Finland)

F

100.00F

100.00Cassidian Ltd.

Newport (United Kingdom)

F: Fully consolidated
P: Proportionate consolidated
E: At equity consolidated
The stated percentage of ownership is related to EADS N.V.
* Regarding associated investments, only the parent company is stated in this list.

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2013

%

2012

%

Company

Head officeF

100.00F

100.00Cassidian Ltd. – Holding

Newport (United Kingdom)F

100.00F

100.00Cassidian Mexico SA de C.V. Colonia Noche Buena (Mexico)F

100.00F

100.00Cassidian Optronics GmbH

F

70.00

F

70.00

Cassidian Optronics Pty. Ltd.

Irene (South Africa)

F

100.00F

100.00Cassidian Real Estate Manching GmbH & Co. KG

Pullach i. Isartal (Germany)F

100.00F

100.00Cassidian Real Estate Ulm / Unterschleißheim GmbH & Co. KG

Pullach i. Isartal (Germany)F

100.00F

100.00Cassidian S.A.S.

Elancourt (France)F

100.00F

100.00Cassidian Saudi Ltd.

Riyadh (Saudi Arabia)

F

100.00F

100.00Cassidian Solutions S.A.U.

Madrid (Spain)F

100.00F

100.00Cassidian Test & Services Ltd.

Wimborne (United Kingdom)F

100.00F

100.00Cassidian Test & Services S.A.S.

Velizy (France)

E

19.60

E

19.60

Cybicom Atlas Defence Pty. Ltd. Umhlanga Rocks (South Africa)

F

100.00F

100.00Dornier Consulting GmbH

Berlin (Germany)F

100.00F

100.00EADS CASA S.A. (Unit: Military Aircraft)

Madrid (Spain)F

100.00F

100.00EADS Deutschland GmbH (Unit: Cassidian)

Ottobrunn (Germany)F

100.00F

100.00EADS Operations & Services UK Ltd.

Newport (United Kingdom)

P

49.00

Emiraje Systems LLC

Abu Dhabi(United Arab Emirates)

30.00

E

30.00

ESG Elektroniksystem- und Logistikgesellschaft mbH

Munich (Germany)

E

24.50

E

24.50

ET Marinesysteme GmbH

Wilhelmshaven (Germany)F

100.00F

100.00Fairchild Controls Corporation

Frederick, MD (USA)F

100.00FmElo Elektronik- und Luftfahrtgeräte GmbH

Ottobrunn (Germany)F

100.00F

100.00Get Electronique S.A.S.

Castres (France)

F

75.00

F

75.00

GEW Technologies (Pty) Ltd.

Pretoria (South Africa)

F

100.00F

100.00GFD GmbH

Hohn (Germany)

P

49.00

P

49.00

Hagenuk Marinekommunikation GmbH

Flintbek (Germany)

P

50.00

P

50.00

Maîtrise d’Œuvre Système S.A.S.

Issy-les-Moulineaux (France)

P

37.50

P

37.50

Matra Electronique

Le Plessis-Robinson (France)E

Oberkochen (Germany)

E

49.00

E

49.00

Matrium GmbH

Karlsruhe (Germany)

P

37.50

P

37.50

MBDA Deutschland GmbH

Schrobenhausen (Germany)

P

37.50

P

37.50

MBDA España S.L.

Madrid (Spain)

P

37.50

P

37.50

MBDA France S.A.S.

Paris (France)

P

75.00

P

75.00

MBDA Holding S.A.S.

Paris (France)

P

37.50

P

37.50

MBDA Insurance Ltd.

Dublin (Ireland)

P

37.50

P

37.50

MBDA International Ltd.

Stevenage (United Kingdom)

P

37.50

P

37.50

MBDA Italy SpA

Rome (Italy)

P

37.50

P

37.50

MBDA S.A.S.

Paris (France)

P

37.50

P

37.50

MBDA Services S.A.

Paris (France)

P

37.50

P

37.50

MBDA Treasury Ltd.

Jersey (United Kingdom)

P

37.50

P

37.50

MBDA UAE Ltd.

Stevenage (United Kingdom)

P

37.50

P

37.50

MBDA UK Ltd.

Stevenage (United Kingdom)

P

37.50

P

37.50

MBDA, Inc.

Westlack, CA (USA)

F

99.84

F

99.84

NETASQ S.A.

Villeneuve d’Ascq (France)

E

26.80

E

26.80

Patria Oyj

Helsinki (Finland)

F

80.00

F

80.00

Pentastar S.A.

Paris (France)F

100.00F

100.00

Plant Holdings, Inc.

Temecula, CA (USA)

F: Fully consolidated
P: Proportionate consolidated
E: At equity consolidated
The stated percentage of ownership is related to EADS N.V.
* Regarding associated investments, only the parent company is stated in this list.

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2013

%

2012

%

Company

Head office

E

18.75

E

18.75

Roxel S.A.

Le Plessis Robinson (France)

P

79.60

P

79.60

Signalis GmbH

Bremen (Germany)

P

79.60

P

79.60

Signalis Holding GmbH

Unterschleißheim (Germany)

P

79.60

P

79.60

Signalis S.A.S.

Bozons (France)

F

99.88

Skyrecon Systems S.A.

Lyon (France)

P

49.00

P

49.00

Sonartech Atlas Pty. Ltd.

Sydney (Australia)

P

25.13

P

25.13

TAURUS Systems GmbH

Schrobenhausen (Germany)

P

37.50

P

37.50

TDW- Ges. für verteidigungstechnische Wirksysteme GmbH

Schrobenhausen (Germany)

E

50.00

E

50.00

United Monolithic Semiconductors Holding*Orsay (France)

F

90.00

UTE CASA y Aeronautica industrial S.A.

Madrid (Spain)F

100.00Astrium Americas, Inc.

Rockville, MD (USA)

Astrium

F

100.00F

100.00Astrium B.V.

The Hague (Netherlands)

F

100.00F

100.00Astrium España S.L.

Madrid (Spain)F

100.00F

100.00Astrium GmbH (Unit: HQs & Holdings)

Munich (Germany)F

100.00F

100.00Astrium GmbH (Unit: Satellites)

Munich (Germany)F

100.00F

100.00Astrium GmbH (Unit: Services)

Munich (Germany)F

100.00F

100.00Astrium GmbH (Unit: Space Transportation)

Munich (Germany)F

100.00Astrium Holding France S.A.S.

Paris (France)F

100.00F

100.00Astrium Holding S.A.S.

Paris (France)F

100.00F

100.00Astrium Ltd. (Unit: HQs & Holdings)

Stevenage (United Kingdom)F

100.00F

100.00Astrium Ltd. (Unit: Satellites)

Stevenage (United Kingdom)F

100.00Astrium Ltd. (Unit: Services P&T)

Stevenage (United Kingdom)F

100.00F

100.00Astrium Ltd. (Unit: Services S&S)

Stevenage (United Kingdom)F

100.00F

100.00Astrium Pte Ltd.

Singapore (Singapore)F

100.00F

100.00Astrium S.A.S. (Unit: HQs & Holdings)

Les Mureaux (France)F

100.00F

100.00Astrium S.A.S. (Unit: Satellites)

Toulouse (France)F

100.00F

100.00Astrium S.A.S. (Unit: Services)

Paris (France)F

100.00F

100.00Astrium S.A.S. (Unit: Space Transportation)

Les Mureaux (France)F

100.00F

100.00Astrium s.r.l.

Rome (Italy)F

100.00F

100.00Astrium Services AS

Lysaker (Norway)

F

100.00F

100.00Astrium Services AS (x-Mobsat Holding Norway AS)

Lysaker (Norway)

F

100.00Astrium Services BC AS

Lysaker (Norway)

F

100.00F

100.00Astrium Services BC B.V.

s-Gravenhage (Netherlands)

F

100.00F

100.00Astrium Services BC GmbH

Cologne (Germany)F

100.00F

100.00Astrium Services BC KKTokyo (Japan)

F

65.00

F

65.00

Astrium Services BC Ltd.

Dar es Salaam (Tanzania)

F

100.00F

100.00Astrium Services BC MEPE

Athens (Greece)

F

100.00F

100.00Astrium Services BC S.A.

Brussels (Belgium)

F

100.00F

100.00Astrium Services BC S.A.S.

Paris (France)F

100.00F

100.00Astrium Services BC S.r.o.

Bratislava (Slovakia)

F

100.00F

100.00Astrium Services BC, Inc.

Rockville, MD (USA)F

100.00F

100.00Astrium Services BCFZ LLC

Dubai (United Arab Emirates)

F

100.00F

100.00Astrium Services Enterprises AS

Holmestrand (Norway)

F

100.00F

100.00Astrium Services Enterprises S.A.S.

Choisy-le-Roi (France)F

100.00F

100.00Astrium Services GmbH

Ottobrunn (Germany)

F: Fully consolidated
P: Proportionate consolidated
E: At equity consolidated
The stated percentage of ownership is related to EADS N.V.
* Regarding associated investments, only the parent company is stated in this list.

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 107

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Notes to the Consolidated Financial Statements (IFRS)
2.6 Appendix “Information on Principal Investments” — Consolidation Scope

2013

%

2012

%

Company

Head officeF

100.00F

100.00Astrium Services Government, Inc.

Rockville, MD (USA)F

100.00F

100.00Astrium Services Holding S.A.S.

Paris (France)F

100.00F

100.00Astrium Services Maritime GmbH

Hamburg (Germany)F

100.00F

100.00Astrium Services UK Ltd.

Stevenage (United Kingdom)F

100.00F

98.86

Axio-Net GmbH

Hanover (Germany)

F

54.40

F

54.40

Beijing Spot Image Co Ltd.

Beijing (China)

F

56.76

F

56.76

Collaborative Engineering s.r.l.

Rome (Italy)F

100.00F

100.00Computadoras, Redes e Ingenieria SA (CRISA)

Madrid (Spain)

F

99.99

F

99.99

DMC International Imaging Ltd.

Surrey (United Kingdom)F

100.00F

100.00Dutch Space B.V.

Leiden (Netherlands)

F

100.00F

100.00EADS CASA Espacio S.L.

Madrid (Spain)F

100.00F

100.00GPT Special Project Management Ltd.

Riyadh (Saudi Arabia)

F

76.85

F

76.85

i-cubed LLC

Fort Collins, CL (USA)F

100.00F

100.00Imass Holding Limited

Newcastle (United Kingdom)F

100.00F

100.00Imass Ltd.

Newcastle (United Kingdom)F

100.00F

100.00

Infoterra GmbHFriedrichshafen (Germany)F

100.00F

100.00

Infoterra Ltd.

Leicester (United Kingdom)F

100.00F

100.00Jena-Optronik GmbH

Jena (Germany)F

100.00F

100.00

Matra Marconi Space UK Ltd.

Stevenage (United Kingdom)F

100.00F

74.90

MilSat Services GmbH

Bremen (Germany)F

100.00F

100.00Mobsat Group Holding S.A.R.L.

Munsbach (Luxembourg)F

100.00Mobsat Holding 1BV

Amsterdam (Netherlands)

F

100.00Mobsat Holding 2BV

Amsterdam (Netherlands)

F

100.00F

75.10

ND SatCom Defence GmbH

Immenstaad (Germany)F

100.00F

75.10

ND SatCom FZE

Dubai (United Arab Emirates)

F

100.00F

75.10

ND Satcom GmbH

Immenstaad (Germany)F

100.00F

75.10

ND SatCom Products GmbH

Immenstaad (Germany)F

100.00F

75.10

ND SatCom Satellite Communication Systems(Beijing) Co. Ltd.

Beijing (China)F100.00F

75.10

ND Satcom, Inc.

Richardson, TX (USA)F

100.00F

100.00

Paradigm Secure Communications Ltd.

Stevenage (United Kingdom)F

100.00F

100.00

Paradigm Services Ltd.

Stevenage (United Kingdom)

E

99.99

E

99.99

Responsive Geospatial Systems

Fort Collins, CL (USA)

F

89.98

F

89.98

Sodern S.A.

Limeil Brevannes (France)

F

66.78

F

66.78

Space Engineering SpA

Rome (Italy)

F

69.24

F

69.24

Spot Asia Pte Ltd.

Singapore (Singapore)

F

98.91

F

98.91

Spot Image Brasil Servicios en ImageSão Paulo (Brazil)

F

98.91

F

98.91

Spot Image Corporation, Inc.

Chantilly, VA (USA)

F

98.91

F

98.91

Spot Image S.A.

Toulouse (France)

F

99.81

F

99.81

Spot Imaging Services Pty. Ltd.

Weston Creek (Australia)

F

99.99

SSTL US, LLC

Delaware (USA)

F

99.99

F

99.99

Surrey Satellite Investments Ltd.

Surrey (United Kingdom)

F

99.99

F

99.99

Surrey Satellite Services Ltd.

Surrey (United Kingdom)

F

99.99

F

99.99

Surrey Satellite Technology Holdings, Inc.

Delaware (USA)

F

99.99

F

99.99

Surrey Satellite Technology Ltd.

Surrey (United Kingdom)

F

99.99

F

99.99

Surrey Satellite Technology Ltd.

Isle of Man

F: Fully consolidated
P: Proportionate consolidated
E: At equity consolidated
The stated percentage of ownership is related to EADS N.V.
* Regarding associated investments, only the parent company is stated in this list.

108 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Consolidated Financial Statements (IFRS)
2.6 Appendix “Information on Principal Investments” — Consolidation Scope

2013

%

2012

%

Company

Head office

F

99.99

F

99.99

Surrey Satellite Technology US LLC

Delaware (USA)

F

66.78

F

66.78

Teleinformatica e Sistemi s.r.l.

Rome (Italy)F

100.00F

100.00TESAT-Spacecom Geschäftsführung GmbH

Backnang (Germany)F

100.00F

100.00TESAT-Spacecom GmbH & Co. KG

Backnang (Germany)

F

98.91

F

98.91

Tokyo Spot ImageTokyo (Japan)

F

100.00Vizada Networks B.V.

Hoofddorp (Netherlands)

Other Businesses
E

30.00

E

30.00

Daher – Socata S.A.*

Louey (France)F

100.00F

100.00EADS North America Holdings, Inc.

Herndon, VA (USA)F

100.00F

100.00EADS North America, Inc.

Arlington, VA (USA)F

100.00F

100.00EADS Supply Services, Inc.

Rockville, MD (USA)F

100.00F

100.00Manhattan Beach Holding Company

Herndon, VA (USA)F

100.00F

100.00

Matra Aerospace, Inc.

Herndon, VA (USA)F

100.00F

100.00Aelis Mexico LLP

Querétaro (Mexico)F

100.00F

100.00

Aero Ré S.A.

Luxembourg (Luxembourg)

F

99.73

F

99.73

AL Objekt Taufkirchen GrundstücksVerwaltungsgesellschaft mbH & Co. KG

Grünwald (Germany)F

100.00F

100.00DADC Luft- und Raumfahrt Beteiligungs AG

Munich (Germany)

E

46.32

E

46.32

Dassault Aviation S.A.*

Paris (France)F

100.00F

100.00Dornier GmbH – Zentrale

Friedrichshafen (Germany)F

100.00F

100.00EADS Aeroassurance S.N.C.

Paris (France)F

100.00F

100.00EADS CASA France S.A.S.

Paris (France)F

100.00F

100.00EADS CASA S.A. (Unit: Headquarters)

Madrid (Spain)F

100.00F

100.00EADS Deutschland GmbH (Unit: Headquarters)

Ottobrunn (Germany)F

100.00F

100.00EADS Finance B.V.

Amsterdam (Netherlands)

F

100.00F

100.00EADS France S.A.S.

Paris (France)F

100.00F

100.00EADS Management Service GmbH

Munich (Germany)F

100.00F

100.00EADS Real Estate Dornier Grundstücke GmbH & Co. KG

Taufkirchen (Germany)F

100.00F

100.00EADS Real Estate Taufkirchen GmbH & Co. KG

Pullach (Germany)F

100.00F

100.00EADS UK Ltd.

London (United Kingdom)F

100.00F

100.00Immobilière AELIS S.A.S.

Paris (France)F

100.00F

100.00

Matra Défense S.A.S.

Velizy (France)F

100.00F

100.00

Matra Holding GmbH

Kehl (Germany)F

100.00F

100.00OBRA Grundstücks-Verwaltungsgesellschaft mbH

Grünwald (Germany)F

100.00F

100.00OOO “EADS”

Moscow (Russia)

Headquarters

F: Fully consolidated
P: Proportionate consolidated
E: At equity consolidated
The stated percentage of ownership is related to EADS N.V.
* Regarding associated investments, only the parent company is stated in this list.

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 1092

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110 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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EADS N.V. — Auditors’ reporton the Consolidated Financial
Statements (IFRS)
Independent Auditors’ report112

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 111

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EADS N.V. — Auditors’ report on the Consolidated Financial Statements (IFRS)

Independent Auditors’ report
To: The Shareholders of European Aeronautic Defence and Space Company EADS N.V.

Report on the Consolidated Financial Statements
We have audited the accompanying Consolidated Financial Statements 2013 which are part of the ﬁnancial statements of European
Aeronautic Defence and Space Company EADS N.V., Amsterdam, and comprise the consolidated statement of ﬁnancial position as
at 31 December 2013, the consolidated statements of income, comprehensive income, cash ﬂow and changes in equity for the year
then ended and notes, comprising a summary of the signiﬁcant accounting policies and other explanatory information.

Management’s responsibility
Management is responsible for the preparation and fair presentation of the Consolidated Financial Statements in accordance with
International Financial Reporting Standards as adopted by the European Union and with Part 9 of Book 2 of the Netherlands Civil
Code and for the preparation of the report of the Board of Directors in accordance with Part 9 of Book 2 of the Netherlands Civil
Code. Furthermore, management is responsible for such internal control as it determines is necessary to enable the preparation of theConsolidated Financial Statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility
Our responsibility is to express an opinion on these Consolidated Financial Statements based on our audit. We conducted our audit
in accordance with Dutch law, including the Dutch Standards on Auditing. This requires that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the Consolidated Financial Statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Consolidated Financial
Statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatementof the Consolidated Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair presentation of the Consolidated Financial Statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity’s internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the Consolidated Financial Statements.
We believe that the audit evidence we have obtained is sufﬁcient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the Consolidated Financial Statements give a true and fair view of the ﬁnancial position of European Aeronautic Defence
and Space Company EADS N.V. as at 31 December 2013 and of its result and its cash ﬂows for the year then ended in accordance with
International Financial Reporting Standards as adopted by the European Union and with Part 9 of Book 2 of the Netherlands Civil Code.

112 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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EADS N.V. — Auditors’ report on the Consolidated Financial Statements (IFRS)

Report on other legal and regulatory requirements
Pursuant to the legal requirements under Section 2:393 sub 5 at e and f of the Netherlands Civil Code, we have no deﬁciencies toreport as a result of our examination whether the report of the Board of Directors, to the extent we can assess, has been prepared inaccordance with Part 9 of Book 2 of this Code, and if the information as required under Section 2:392 sub 1 at b - h has been annexed.
Further, we report that the report of the Board of Directors, to the extent we can assess, is consistent with the Consolidated Financial
Statements as required by Section 2:391 sub 4 of the Netherlands Civil Code.
Amstelveen, 25 February 2014

Rotterdam, 25 February 2014

KPMG Accountants N.V.

Ernst & Young Accountants LLP

A.A. van Eimeren RA

C.T. Reckers RA

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AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 113

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114 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Company Financial Statements
Balance Sheet of the Company Financial Statements

116

Income Statement of the Company Financial Statements

117

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Company Financial Statements

Balance Sheet of the Company Financial Statements

At 31 December

Note
2013

(In € million)

2012

AssetsFixed assets
Goodwill

2

4,354

4,354

Financial fixed assets(2)2

14,107

11,331

Non-current securities

4

4,179

5,786

22,64021,471

8,654

Non-fixed assets
Receivables and other assets

3

10,073Current securities

4

2,430

2,228

Cash and cash equivalents

4

6,126

6,962

18,62917,844

41,26939,315783

827

Share premium

5,049

7,253

Revaluation reserves

1,718

146

Legal reserves

4,462

4,143

Treasury shares

(50)

(84)

(2)

(2,416)(3,079)Result of the year(2)

1,465

1,197

11,011

10,403

3,514

3,078

3,514

3,078

Total assets (2)Liabilities and stockholders’ equity
Stockholders’ equity(1)5Issued and paid up capital

Retained earnings

Non-current liabilities
Non-current financing liabilities

6

Current liabilities
Current financing liabilities

6

914

-

Other current liabilities

7

25,83025,834

26,74425,834

41,26939,315

Total liabilities and stockholders’ equity(2)(1) The balance sheet is prepared before appropriation of the net result.
(2) Previous year’s figures adjusted due to revised IAS 19 and due to PPA adjustments of prior year’s acquisitions.

116 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Company Financial Statements

Income Statement of the Company Financial Statements(In € million)

2013

2012

Income from investments(1)

1,466

1,137

(1)

60

1,465

1,197

Other results

Net result(1)8(1) Previous year’s figures adjusted due to revised IAS 19.

4

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 117

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118 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Company Financial
Statements

AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 119

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Notes to the Company Financial Statements

Contents

1.

Basis of presentation

121

2.

Fixed assets

122

3.

Receivables and other assets

123

4.

Securities, Cash and cash equivalents

123

5.

Stockholders’ equity

123

6.

Financing liabilities

124

7.

Current liabilities

124

8.

Net income

125

9.

Financial instruments

125

10.

Commitments and contingent liabilities

125

11.

Remuneration

125

12.

Employees

129

13.

Related party transactions

129

14.

Auditor Fees

129

Supplementary Information

130

Independent Auditors’ report130

Other Supplementary Information

131

1.

Appropriation of result

131

2.

Subsequent events

131

120 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Company Financial Statements

1.

Basis of presentation

1.1 General
EADS N.V., having its legal seat in Amsterdam, the Netherlands, isengaged in the holding, coordinating and managing of participations
or other interests in and to ﬁnance and assume liabilities, provide
for security and/or guarantee debts of legal entities, partnerships,
business associations and undertakings that are involved in the
aeronautic, defence, space and/or communication industry or
activities that are complementary, supportive or ancillary thereto.
The Company Financial Statements are part of the 2013 Financial
Statements of EADS N.V.
The description of the Company’s activities and the Groupstructure, as included in the Notes to the Consolidated Financial
Statements, also apply to the Company Financial Statements. In
accordance with Article 402 Book 2 of the Dutch Civil Code theIncome Statement is presented in abbreviated form.

1.2 Principles for the measurement of assets
and liabilities and the determinationof the result
For setting the principles for the recognition and measurement ofassets and liabilities and determination of the result for its Company
Financial Statements, EADS N.V. makes use of the option provided
in Section 2:362 (8) of the Netherlands Civil Code.

As from 2005, the Netherlands Civil Code allows that the principles
for the recognition and measurement of assets and liabilities anddetermination of the result (hereinafter referred to as principles
for recognition and measurement) of the Company Financial
Statements of EADS N.V. are the same as those applied for theConsolidated EU-IFRS Financial Statements. These Consolidated
EU-IFRS Financial Statements are prepared according to thestandards laid down by the International Accounting Standards
Board and adopted by the European Union (herein referred to
as EU-IFRS). Please see Note 2 of the Consolidated Financial
Statements for a description of these principles.
Subsidiaries, over which signiﬁcant inﬂuence is exercised, arestated on the basis of the Net Asset Value.
The share in the result of participating interests consists of theshare of EADS N.V. in the result of these participating interests.
Results on transactions, where the transfer of assets and liabilities
between EADS N.V. and its participating interests and mutually
between participating interests themselves, are not incorporated
insofar as they can be deemed to be unrealised.
Undistributed results from investments are included in the legal
reserves to the extent the Company cannot enforce dividend
distribution.

5
AIRBUS GROUP FINANCIAL STATEMENTS 2013 — 121

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Notes to the Company Financial Statements

2.

Fixed assets

At the end of 2013, goodwill acquisition cost amounts to € 5,676 million (2012: € 5,676 million) and the cumulative amortisation andimpairments amount to € 1,322 million (2012: € 1,322 million).
The movements in ﬁnancial ﬁxed assets are detailed as follows:(In € million)

Subsidiaries

Participations

Loans

Total

6,126

149

3,527

9,802

Balance at 31 December 2011
(1)

Prior Years’ Adjustment

Balance at 31 December 2011(1)Additions

(7)

-

-

(7)

6,119

149

3,527

9,795

138

Redemptions
Share based payments

367

514

(328)

(332)

18

Net income from investments(1)1,119Actuarial gains / losses IAS 19(1)(739)

Dividends received(240)

Translation differences / other changes

9
(4)

(1)

Balance at 31 December 2012

18
18

(739)
(12)

1,214

2

(26)

1,190

162

3,540

11,331

22

Redemptions

Net income from investments

(252)

7,629

AdditionsShare based payments

1,137

544

566

(422)

(422)

33
1,453

Actuarial gains / losses IAS 19(48)

Dividends received

(26)

33
13

1,466
(48)

(6)

(32)

Translation differences / other changes

1,286

24

(97)

1,213

Balance at 31 December 201310,327215

3,565

14,107(1) Previous years’ figures adjusted due to revised IAS 19 and due to PPA adjustments of prior year’s acquisitions.

The investments in subsidiaries are included in the b alances heet based on their net asset value in accordance with theaforementioned accounting principles of the Consolidated Financial
Statements. The participations include available-for-sale securities
measured at fair value and investments in associated companies
accounted for using the equity method.
The translation differences / other changes reﬂect mainly the impact
in the other comprehensive income related to the application of
IAS 39.
Signiﬁcant subsidiaries, associates and joint ventures are listed
in the Appendix “Information on Principal Investments” to theConsolidated Financial Statements.

122 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

The loans in the amount of € 3,565 million (2012: € 3,540 million)
include loans provided to subsidiaries in the amount of € 3,207 million(2012: € 2,990 million) and loans provided to participations in theamount of € 94 million (2012: € 58 million). The increase of loans
is mainly driven by loans provided to the subsidiaries Airbus SAS
and Helicopteros do Brasil SA. The item redemptions mainly
reﬂects repayments of loans provided to Astrium Holding SAS
and Cassidian Ltd. An amount of € 1,519 million has a maturity
between ﬁve and ten years and an amount of € 391 million matures
after ten years. On average, the interest rate of the loans is 3.5%.

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Notes to the Company Financial Statements

3.

Receivables and other assets(In € million)

2013

2012

Receivables from subsidiaries

9,873

8,410

200

244

10,073

8,654

Other assets

Total receivables and other assets

The receivables from subsidiaries include mainly receivables in connection with the cash pooling in EADS N.V.
The receivables and other assets in the current year and in the previous year are due within one year.

4.

Securities, Cash and cash equivalents

The securities comprise mainly available-for-sale securities. The available-for-sale security portfolio contains a non-current portion of€ 4,179 million (2012: € 5,786 million). For further information please see Note 22 of the Consolidated Financial Statements.
EADS limits its cash equivalents to such investments having a maturity of three months or less from acquisition date.

5.

Stockholders’ equity(In € million)

Balance at 31 December 2011
(1)

Prior Years’ Adjustment

Balance at 31 December 2011(1)Capital increase

Capital
stock

Share
premiums

Revaluation
reserves

Legal
reserves

TreasurysharesRetainedearnings

Result of
the yearTotal
equity820

7,519(1,207)

3,544

(113)

(2,746)

1,033

8,850

-

-

-

-

-

46

(53)

(7)

820

7,519

(1,207)

3,544

(113)

(2,700)

980

8,843

7

137
1,197

1,197

144

Net income(1)Cash distribution

(369)

(369)

Share based payments

18

Transfer to legal reserves593

Purchase / sale of treasury shares
Cancellation of treasury shares
Others

(34)

(1)

1,353

(593)

Capital increase

827

7,253

9

233

146

(5)

34

0

6

4,143

(784)

(84)

(467)

Share based payments

(74)

(980)

0

(3,079)1,197

10,403

1,465

1,465

242

(467)

Transfer to legal reserves

475

Purchase of treasury shares
Cancellation of treasury shares(53)(1,896)

Others

1,572

783

5,049

1,718

33
0
(1,915)

1,949

0

(156)

4,462

107
(475)
(1,915)(166)

Appropriation of result(1)Balance at 31 December 2013

575

980

Net income
Cash distribution

0(5)

Appropriation of result

Balance at 31 December 2012

18

(50)

1,250

1,197

(1,197)0(2,416)

1,465

11,011(1) Previous years’ figures adjusted due to revised IAS 19 and due to PPA adjustments of prior year’s acquisitions.

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Notes to the Company Financial Statements

For further information to the Stockholders’ equity, please see
Note 23 of the Consolidated Financial Statements.
As of 31 December 2013, the item “Revaluation reserves” relates
to € 594 million (2012: € 563 million) from unrealised positive fairvalues of securities classiﬁed as available for sale, and fair valuesof cash ﬂow hedges, recognised directly in equity with a positive
amount of € 1,124 million (2012: € 418 million negative fair values).
The securities classiﬁed as available for sale and cash ﬂow hedges
are included in the ﬁ xed asset movement schedule within the“Subsidiaries”.
The “Legal reserves” are related to EADS’ share in the undistributed
results from investments for € 1,626 million (2012: € 1,412 million),internally generated capitalised development costs of € 1,625 million(2012: € 1,365 million) and € 1,211 million (2012: € 1,366 million)
resulting from currency translation effects of afﬁliated companies.

The “Retained earnings” include actuarial losses arising fromdeﬁned beneﬁt plans, recognised in equity, with an amount of€ 3,122 million negative (2012: € 3,074 million negative).
Pursuant to Dutch law, limitation exists relating to the distributionof stockholders’ equity with an amount of € 6,964 million (2012:€ 5,534 million). The limitations relate to capital stock of € 783 million(2012: € 827 million) and to legal reserves of € 4,462 million (2012:€ 4,143 million). In 2013, unrealised gains related to “Revaluation
reserves” with an amount of € 1,718 million (2012: 564 million) were
not distributable. In general, gains related to available for salesecurities, fair values of cash ﬂow hedges, currency translation
effects of afﬁliated companies and capitalised development costs
reduce the distributable stockholders’ equity.

The internally generated development costs reﬂect capitalised
development costs in the consolidated subsidiaries and areallocated to other legal reserves in accordance with Article 2:389
paragraph 6 of the Dutch Civil Code.

6.

Financing liabilities

The non-current ﬁnancing liabilities in the amount of € 3,514 million(2012: € 3,078 million) include two long-term loans, granted by
the European Investment Bank to EADS for a total amount of
US$1,127 million, a US$300 million loan granted by the Development
Bank of Japan and three loans granted by EADS Finance B.V. for an
amount of € 1,494 million and US$1,000 million (granted in 2013).
The two EUR-loans originate from the issuance of two EUROdenominated bonds under EADS’ EMTN Programme by EADS
Finance B.V. The USD-Loan originates from the issuance by EADS
Finance B.V. of a USD denominated bond in the U.S. institutional

7.

market. Terms and conditions of the three loans basically match
those of the underlying bonds.
The current ﬁ nancing liabilities in the amount of € 914 million
relate to cash received for security lending activities amounting
to € 608 million and the current part of one loan granted by theEuropean Investment Bank in the amount of US$421 million.
For further details, please see Note 26 of the Consolidated Financial
Statements.

Current liabilities(In € million)

2013

2012

Liabilities to subsidiaries

25,02924,577

Liabilities to participations

598

891

Other liabilities

203

366

25,83025,834Total

The liabilities to subsidiaries comprise mainly liabilities in connection with the cash pooling in EADS N.V.

124 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Company Financial Statements

8.

Net income

The net income in 2013 amounts to € 1,465 million (2012: net income of € 1,197 million).

9.

Financial instruments

By the nature of the activities carried out, EADS is exposed to avariety of ﬁnancial risks, especially foreign currency exchange raterisks and interest risks. EADS uses ﬁnancial instruments in order tolimit these ﬁnancial risks. Information to the terms and conditions of
the ﬁnancial instruments and the respective fair values is provided
in Note 34 of the Consolidated Financial Statements.

10. Commitments and contingent liabilities
EADS N.V. issued guarantees on behalf of consolidated companies
in the amount of € 6,404 million (2012: € 6,358 million). The
commitments of these companies to third parties mainly relate totheir operating business as described in Note 33 and Note 36 to

the Consolidated Financial Statements. The Company is heading
a ﬁscal unity, which also includes EADS Finance B.V., Astrium B.V.
and Dutch Space B.V. and therefore the Company is several andjointly liable for income tax liabilities of the ﬁscal unity as a whole.

11. Remuneration
The total remuneration of the Non-Executive and the Executive Members of the Board of Directors and former Directors related to
the reporting periods 2013 and 2012 can be summarised as follows:

Executive Members of the Board(In €)

2012(1)2013

Base Salary

1,400,004

1,229,169

Annual Variable Pay(2)1,989,646

2,108,698

544,736

1,000,769

4,669,363

1,371,899

Pension cost
Share based remuneration (“LTIP award”)(3)
Other benefits

73,687

27,845Social charges

11,052

795,357(1) Figures account for pro rata periods considering the change of the Group’s Chief Executive Officer from Louis Gallois to Tom Enders during 2012.
(2) The annual variable pay is based on estimated performance achievement as at the balance sheet date.
(3) Expense related to share-based payment plans as recognised in the annual period (service period): refer to Note 35 to the Consolidated Financial Statements for details.

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Notes to the Company Financial Statements

Summary table of the remuneration of the Non-Executive Directors
The remuneration of the Non-Executive Members of the Board of Directors was as follows:

Directors’ remuneration related to 2013*

Directors’ remuneration related to 2012*

Fixum

Attendance Fees

Fixum

Attendance Fees(in €)(in €)(in €)(in €)

Denis Ranque(1)135,000

60,000

N/A

N/A

Manfred Bischoff(2)60,00045,000

N/A

N/A

Current Non-Executive Board Members*(3)

60,00045,000

N/A

N/A

Hans-Peter Keitel(4)75,00045,000

N/A

N/A

115,000

60,000130,000

50,00075,00045,000

N/A

N/A
40,000Ralph D Crosby Jr

Hermann-Josef Lamberti(5)

Anne Lauvergeon(6)(7)

95,00035,00080,000Sir John Parker(8)115,000

50,000130,000

50,000Michel Pébereau(9)95,00055,000100,000

40,000Josep Piqué i Camps(10)95,00050,00046,66735,000Jean-Claude Trichet(11)95,00060,00046,66740,000Lakshmi N. Mittal

Former Non-Executive Board Members
Dominique D’Hinnin(12)30,00010,000120,000

55,000Arnaud Lagardère(13)45,00020,000164,167

80,000Wilfried Porth(14)25,00010,000108,334

35,000(15)

25,0005,000

157,500

55,000Rolf Bartke

N/A

N/A

41,667

15,000Juan Manuel Eguiagaray Ucelay

N/A

N/A

33,33315,0001,140,000

595,000

1,158,335

510,000

Bodo Uebber

Former Non-Executive Board Members in 2012

Total

* The Fixum related to 2012 was paid in 2013; the Fixum related to 2013 will be paid in 2014.
(1) New Chairman of the Company’s Board of Directors as of 01/04/2013.
(2) New Member of the Company’s Board of Directors as of 01/04/2013.
(3) New Member of the Company’s Board of Directors as of 01/04/2013.
(4) New Member of the Company’s Board of Directors and RNC as of 01/04/2013.
(5) Member of the Company’s Board of Directors and Chairman of the Audit Committee for the entire year 2013, Member of the RNC until 31/03/2013.
(6) New Member of the Company’s Board of Directors and Audit Committee as of 01/04/2013.
(7) Member of the Company’s Board of Directors for the entire year 2013, new Member of the RNC as of 01/04/2013.
(8) Member of the Company’s Board of Directors and Chairman of the RNC for the entire year 2013, Member of the Audit Committee until 31/03/2013.
(9) Member of the Company’s Board of Directors for the entire year 2013, new Member of the Audit Committee as of 01/04/2013.
(10) Member of the Company’s Board of Directors for the entire year 2013, new Member of the Audit Committee as of 01/04/2013.
(11) Member of the Company’s Board of Directors for the entire year 2013, new Member of the RNC as of 01/04/2013.
(12) Member of the Company’s Board of Directors, Audit committee and RNC until 31/03/2013.
(13) Chairman of the Company’s Board of Directors until 31/03/2013.
(14) Member of the Company’s Board of Directors and RNC until 31/03/2013.
(15) Member of the Company’s Board of Directors and Audit Committee until 31/03/2013.

Summary table of the remuneration of the current and former Executive Directors in 2012
The remuneration of the Executive Members of the Board of Directors in 2012 was as follows:

Directors’ remuneration in respect of 2012
Base
SalaryAnnualVariable Pay

Pension
Cost

Share based
payment

Other
benefits

SocialCharges(in €)(in €)(in €)(in €)(in €)(in €)

816,669

1,278,083

1,000,769

548,549

27,845

6,347

Executive Board Members
Tom Enders (1 June to 31 December 2012)
Louis Gallois (1 January to 31 May 2012)

Total

412,500

830,615-

823,350-

789,010

1,229,169

2,108,698

1,000,769

1,371,899

27,845795,357

The bonus conditions are disclosed in the Board report, chapter 4.3.1.2.

126 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

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Notes to the Company Financial Statements

The table below gives an overview of the interests of the current Executive Board Directors under the various Long-Term Incentive
Plans of EADS:Stock option plans
NUMBER OF OPTIONSYear of plan

Initially
granted

As at
1 Jan 2013

Granted in2013

Exercisedduring 2013

As at
31 Dec 2013

Exercise
price in Euro

Expirydate

Tom Enders
2003

50,00025,000-25,0000

15.65

9 Oct. 2013

2004

50,00037,500-37,5000

24.32

7 Oct. 20142005

135,000

67,500-67,5000

33.91

8 Dec. 2015

2006

67,50067,500-16,87550,625

25.65

16 Dec. 2016

After a recommendation of the Remuneration and Nomination
Committee and in compliance with the relevant best practicerecommendations, the Board of Directors recommended the
set-up of a “blind trust” to which the executives could sign up
after the Group’s Annual General Meeting in late May 2013.
The independence of the trust protects the integrity of thesignee and promises compliance with market regulations onsuch matters.

The Chief Executive Ofﬁcer decided during an open trading period
to entrust the exercise of his options granted between 2003 anduntil 2006 and thereby relinquished any control over the trading
decisions. Under this scheme trading decisions are scheduled
in advance by the trust, and are implemented by the relevantbank following a substantial time buffer (of approximately threemonths) without any knowledge or inﬂuence of the signatory.
Any exercise / sale of the Chief Executive Ofﬁcer in 2013 was
executed in the frame of the blind trust mandates.

Performance Units plan
NUMBER OF PERFORMANCE UNITS(2)Tom Enders

Granted in 2008

Vested in 2013

40,00027,200(1) (Re-evaluation of Performance Units basedon 136% performance achievement)(1) 40,000 units have increased to 54,400 according to performance criteria of 136%. All of the 54,400 units have vested and were settled in cash but 20% units during two 2013
vestings were converted into and settled in shares (total units of 5,440). There are no outstanding unvested units of 2008 plan.

Tom Enders

Granted in 2009

Vested in 2013

46,00021,218(1) (Re-evaluation of Performance Units
based on 123% performance achievement)
Remaining vesting schedule:¬ 10,609 cash-settled units: expected in May 2014
¬ 10,609 cash-settled and 14,144 equity- settled units:
expected in November 2014

(1) 46,000 of granted units increased to 56,580 in accordance with performance achievement of 123%. In line with end of 2012 implemented option of partial conversion to equity
settlement (see Notes 35 and 36 of IFRS Group Financial Statements) 75% of those 56,580 units (42,436 units) will vest in cash at each of initial vesting dates. The remaining 25%of the 56,580 units (14,144 units) will vest and be settled in shares at the last vesting date in November 2014.

Tom Enders

Granted in 2010

Vesting date

54,400

Vesting schedule is made up of 4 payments over 2 years¬ 25% of cash-settled units: expected in May 2014
¬ 25% of cash settled units: expected in November 2014
¬ 25% of cash settled units: expected in May 2015
¬ 25% of cash- settled units, 100% of equity-settled units:
expected in November 2015

End of 2012, the Chief Executive Officer opted for 75% cash settlement of all vesting Performance Units at each vesting date. Remaining 25% of units will be settled in sharesat the last vesting date.

(2) Vesting of all Performance Units granted to the Chief Executive Ofﬁcer is subject to performance conditions.

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Notes to the Company Financial Statements

Tom Enders

Granted in 2011

Vesting date

51,400

Vesting schedule is made up of 4 payments over 2 years:¬ 25% of cash-settled units: expected in May 2015
¬ 25% of cash-settled units: expected in November 2015
¬ 25% of cash-settled units: expected in May 2016
¬ 25% of cash-settled units, 100% of equity-settled units:
expected in November 2016

End of 2012, the Chief Executive Officer opted for 75% cash settlement of all vesting Performance Units at each vesting date. Remaining 25% of units will be settled in sharesat the last vesting date.

Tom Enders

Granted in 2012

Vesting date

50,300

Vesting schedule is made up of 4 payments over 2 years:¬ 25% of cash-settled units: expected in May 2016
¬ 25% of cash-settled units: expected in November 2016
¬ 25% of cash settled units: expected in May 2017
¬ 25% of cash-settled units, 100% of equity-settled units:
expected in November 2017

End of February 2013, the Chief Executive Officer opted for 75% cash settlement of all vesting Performance Units at each vesting date. Remaining 25% of units will be settled inshares at the last vesting date.

Tom Enders

Granted in 2013

Vesting date

30,300

Vesting schedule is made up of 4 payments over 2 years:¬ 25% of cash-settled units: expected in May 2017
¬ 25% of cash-settled units: expected in November 2017
¬ 25% of cash-settled units: expected in May 2018
¬ 25% of cash-settled units, 100% of equity-settled units:
expected in November 2018

In February 2014, the Chief Executive Officer opted for 50% cash settlement of all vesting Performance Units at each vesting date. Remaining 50% of units will be settled in sharesat the last vesting date.

Stock option plans
To the other current Members of the Executive Committee andto the Group’s senior management, the number of outstanding
stock options amounted to 4,314,115 at 31 December 2013 (2012:
11,355,143).
During the year 2013, the Executive Committee Members haveexercised 260,000 options granted under the various EADS stock
option plans. 263,000 options were exercised by former Executive
Board Directors.

Performance and Restricted Unit plans
The total number of outstanding Performance and Restricted Units
amounted to 13,492,556 at 31 December 2013 (2012: 15,235,262)
mostly granted to the current Members of the Executive Committee
and to the Group’s senior management.
Fair Value of outstanding LTIP balances end of 2013 for the Chief
Executive Ofﬁcer was € 4,232,328 (2012: € 2,649,378).
The pension benefit obligation for the Executive Committee
Members is as follows:
The Members of the Executive Committee have pension promises
as part of their employment agreements. The general policy is to
give them annual pensions of 50% of their annual base salary uponreaching 5 years of service in the Executive Committee of EADS,
payable once they reach retirement age.

128 — AIRBUS GROUP FINANCIAL STATEMENTS 2013

These rights can gradually increase to 60% after a second
term, usually after ten years of service in the EADS Executive
Committee. However, in order to reach this 60% replacement
ratio the respective Member of the Executive Committee mustalso have 12 years of seniority within the Group.
These pension schemes have been implemented through collective
executive pension plans in France and Germany. These pension
promises have also separate rules e.g. for minimum length ofservice and other conditions to comply with national regulations.
For the Chief Executive Officer, Tom Enders, the pension
defined benefit obligation amounted to € 12,921,270 as of
31 December 2013, whilst the amount of current service andinterest cost related to his pension promise accounted for theﬁscal year 2013 represented an expense of € 544,736. This amount
has been accrued in the Consolidated Financial Statements. The
deﬁned beneﬁt obligation of Tom Enders results from the Group’s
Executive Committee pension policy as described above and takes
into account (1) the seniority of Tom Enders in the Group and its
Executive Committee and (2) the signiﬁcant lower public pension
promise derived from the German social security pension systemcompared to public pensions resulting from the membership in
the French public pension system.

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Notes to the Company Financial Statements

Other beneﬁts
The Chief Executive Ofﬁcer, Tom Enders, is entitled to accident
insurance coverage and a company car. In 2013 the total amount
expensed was € 73,687.

The Company has not provided any loans to / advances to /guarantees on behalf of Directors.
For further information on the remuneration, please see Notes 35
and 36 of the Consolidated Financial Statements.

12. Employees
The number of persons employed by the Company at year end 2013 was 2 (2012: 2).

13. Related party transactions
For further information on the related party transactions, please see Note 36 of the Consolidated Financial Statements.

14. Auditor Fees
Services of Statutory Auditors and Members of their Network rendered to the Group for the ﬁnancial years 2013 and 2012:
KPMG Accountants N.V.

2013

Ernst & Young Accountants LLP

2012Amountin €K%Amountin €K

Audit process, certification, examinationof individual and consolidated accounts

5,201

63.6

Additional tasks(1)

2,196

26.9

Sub-total

7,397

Legal, tax, employment
Information Technology

2013

2012

%

Amountin €K%Amount
in €K

5,780

55.0

5,931

68.8

5,836

61.3

3,725

35.5

2,123

24.6

3,158

33.2

90.5

9,505

90.5

8,054

93.4

8,994

94.5

769

9.4

961

9.2

566

6.6

519

5.5

8

0.1

20

0.1

0

0.0

0

0.0

%

Audit

Other services as relevant

Other

Sub-total

Total

0

0.0

22

0.2

0

0.0

0

0.0

777

9.5

1,003

9.5

566

6.6

519

5.5

8,174

100.0

10,508

100.0

8,620

100.0

9,513

100.0

(1) Mainly transaction related work.

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Notes to the Company Financial Statements
Supplementary Information

Supplementary Information
Independent Auditors’ report
To: The EADS N.V. Shareholders:

Report on the Company Financial Statements
We have audited the accompanying Company Financial Statements 2013 which are part of the ﬁnancial statements of European
Aeronautic Defence and Space Company EADS N.V., Amsterdam, and comprise the company balance sheet as at 31 December
2013, the company proﬁt and loss account for the year then ended and the notes, comprising a summary of the accounting policies
and other explanatory information.

Management’s responsibility
Management is responsible for the preparation and fair presentation of the Company Financial Statements and for the preparation of
the report of the Board of Directors, both in accordance with Part 9 of Book 2 of the Netherlands Civil Code. Furthermore, management
is responsible for such internal control as it determines is necessary to enable the preparation of the Company Financial Statementsthat are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility
Our responsibility is to express an opinion on these Company Financial Statements based on our audit. We conducted our audit inaccordance with Dutch law, including the Dutch Standards on Auditing. This requires that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the Company Financial Statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Company Financial
Statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatementof the Company Financial Statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal
control relevant to the entity’s preparation and fair presentation of the Company Financial Statements in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the Company Financial Statements.
We believe that the audit evidence we have obtained is sufﬁcient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the Company Financial Statements give a true and fair view of the ﬁnancial position of European Aeronautic Defence
and Space Company EADS N.V. as at 31 December 2013 and of its result for the year then ended in accordance with Part 9 of Book 2of the Netherlands Civil Code.

Report on other legal and regulatory requirements
Pursuant to the legal requirements under Section 2:393 sub 5 at e and f of the Netherlands Civil Code, we have no deﬁciencies toreport as a result of our examination whether the report of the Board of Directors, to the extent we can assess, has been prepared inaccordance with Part 9 of Book 2 of this Code, and if the information as required under Section 2:392 sub 1 at b - h has been annexed.
Further, we report that the report of the Board of Directors, to the extent we can assess, is consistent with the Company Financial
Statements as required by Section 2:391 sub 4 of the Netherlands Civil Code.
Amstelveen, 25 February 2014

Rotterdam, 25 February 2014

KPMG Accountants N.V.

Ernst & Young Accountants LLP

A.A. van Eimeren RA

C.T. Reckers RA

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Notes to the Company Financial Statements
Other Supplementary Information

Other Supplementary Information
1.

Appropriation of result

Articles 30 and 31 of the Articles of Association provide that theBoard of Directors shall determine which part of the result shall be
attributed to the reserves. The General Meeting of Shareholders
may dispose of a reserve only upon a proposal of the Board of
Directors and to the extent it is permitted by law and the Articles
of Association. Dividends may only be paid after adoption of theannual accounts from which it appears that the shareholders’equity of the Company is more than the amount of the issued and2.

paid-in part of the capital increased by the reserves that must be
maintained by law.
It will be proposed at the Annual General Meeting of Shareholders
that the net income of € 1,465 million as shown in the income
statements for the ﬁnancial year 2013 is to be added to retained
earnings and that a payment of a gross amount of € 0,75 per share
shall be made to the shareholders.

Subsequent events

For further information please see Note 40 of the Consolidated Financial Statements.

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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