Airbus reports Half-Year (H1) 2020 results●
Industrial system adjusted to new production levels, cash containment and businessresizing on track●
H1 financials reflect COVID-19 impact mitigated by adaptation measures●
Revenues € 18.9 billion; EBIT Adjusted € -0.9 billion, including € -0.9 billion COVID-19
related charges●
EBIT (reported) € -1.6 billion; loss per share (reported) € -2.45●
Free cash flow before M&A and customer financing € -12.4 billion, € -4.4 billion in Q2●
Strong liquidity underpins business resilience and flexibility
Amsterdam, 30 July 2020 – Airbus SE (stock exchange symbol: AIR) reported consolidated
financial results for the Half-Year (H1) ended 30 June 2020.
“The impact of the COVID-19 pandemic on our financials is now very visible in the second
quarter, with H1 commercial aircraft deliveries halving compared to a year ago,” said Airbus
Chief Executive Officer Guillaume Faury. “We have calibrated the business to face the newmarket environment on an industrial basis and the supply chain is now working in line with
the new plan. It is our ambition to not consume cash before M&A and customer financing in
H2 2020. We face a difficult situation with uncertainty ahead, but with the decisions we havetaken, we believe we are adequately positioned to navigate these challenging times in our
industry.”
Net commercial aircraft orders totalled 298 (H1 2019: 88 aircraft), including 8 aircraft in Q2,
with the order backlog comprising 7,584 commercial aircraft as of 30 June 2020. Airbus
Helicopters booked 75 net orders (H1 2019: 123 units), including 3 H145s, 1 Super Puma
and 1 H160 during the second quarter alone. Airbus Defence and Space’s order intake
increased to € 5.6 billion.
Consolidated revenues decreased to € 18.9 billion (H1 2019: € 30.9 billion), driven by thedifficult market environment impacting the commercial aircraft business with around 50%
fewer deliveries year-on-year. This was partly offset by more favourable foreign exchange
rates. A total of 196 commercial aircraft were delivered (H1 2019: 389 aircraft), comprising 11
A220s, 157 A320 Family, 5 A330s and 23 A350s. Airbus Helicopters reported stablerevenues, reflecting lower deliveries of 104 units (H1 2019: 143 units) partially compensatedby higher services. Revenues at Airbus Defence and Space were impacted by lower volume
and mix, in particular at Space Systems, as well as delays in some programmes caused by
the COVID-19 situation.
Consolidated EBIT Adjusted – an alternative performance measure and key indicator
capturing the underlying business margin by excluding material charges or profits caused by
movements in provisions related to programmes, restructuring or foreign exchange impacts
as well as capital gains/losses from the disposal and acquisition of businesses – totalled€ -945 million (H1 2019: € 2,529 million).

Page | 1

Airbus’ EBIT Adjusted of € -1,307 million (H1 2019: € 2,193 million(1)) mainly reflected the
reduced commercial aircraft deliveries and lower cost efficiency. Steps have been taken toadapt the cost structure to the new levels of production, the benefits of which arematerialising as the plan is executed. Also included in the EBIT Adjusted is € -0.9 billion of
COVID-19 related charges.
Commercial aircraft are now being produced at rates in accordance with the new production
plan announced in April 2020, in response to the COVID-19 situation. The current market
situation has led to a slight adjustment in the A350 rate from 6 to 5 aircraft a month for now.
On the A220, the Final Assembly Line (FAL) in Mirabel, Canada, is expected to progressively
return to pre-COVID levels at rate 4 while the new FAL in Mobile, US, opened as planned inMay. At the end of June, around 145 commercial aircraft could not be delivered due to
COVID-19.
Airbus Helicopters’ EBIT Adjusted increased to € 152 million (H1 2019: € 125 million),reflecting a favourable mix, mainly in military, and higher services partially offset by the lower
deliveries. The five-bladed H145 and H160 helicopters were recently certified by theEuropean Union Aviation Safety Agency.
EBIT Adjusted at Airbus Defence and Space decreased to € 186 million (H1 2019: € 233
million), reflecting the COVID-19 impact, mainly in Space Systems, partly offset by cost
reduction measures. The Division’s restructuring plan was updated to also reflect the impactof the coronavirus pandemic.
Three A400M transport aircraft were delivered in H1 2020. The certification of automatic lowlevel flight capability and simultaneous paratrooper dispatch were achieved in H1 2020,
marking major milestones towards the aircraft’s full development. A400M retrofit activities areprogressing in close alignment with customers.

Page | 2

Consolidated self-financed R&D expenses totalled € 1,396 million (H1 2019: € 1,423
million).
Consolidated EBIT (reported) was € -1,559 million (H1 2019: € 2,093 million), including
Adjustments totalling a net € -614 million. These Adjustments comprised:●€ -332 million related to A380 programme cost, of which € -299 million was in Q2;●€ -165 million related to the dollar pre-delivery payment mismatch and balance sheet
valuation, of which € -31 million was in Q2;●€ -117 million of other costs, including compliance, of which € -82 million was in Q2.
The consolidated reported loss per share of € -2.45 (H1 2019 earnings per share: € 1.54)
includes the financial result of € -429 million (H1 2019: € -215 million). The financial result
reflects a net € -212 million related to Dassault Aviation as well as the impairment of a loan to
OneWeb, recorded in Q1 2020 for an amount of € -136 million. The consolidated net loss(2)was € -1,919 million (H1 2019 net income: € 1,197 million).
Consolidated free cash flow before M&A and customer financing amounted to € -12,440
million (H1 2019: € -3,981 million) of which € -4.4 billion was in Q2. The corresponding figure
for Q1 2020 excluding the penalty payments - related to January’s compliance settlementwith the authorities - was also at € -4.4 billion, demonstrating that cash containment
measures including the adjustment of incoming supply started to become effective. These
measures partially compensated for the reduced cash inflow from the low number ofcommercial aircraft deliveries in Q2.
Capital expenditure in H1 was stable year-on-year at around € 0.9 billion with Full-Year 2020
capex still expected to be around € 1.9 billion. Consolidated free cash flow was € -12,876
million (H1 2019: € -4,116 million). The consolidated net debt position was € -586 million on
30 June 2020 (year-end 2019 net cash position: € 12.5 billion) with a gross cash position of€ 17.5 billion (year-end 2019: € 22.7 billion).
The Company’s Full-Year 2020 guidance was withdrawn in March. The impact of COVID-19
on the business continues to be assessed and given the limited visibility, in particular withrespect to the delivery situation, no new guidance is issued.

Page | 3

Key post-closing events
In the frame of COVID-19, discussions are progressing with social partners. A restructuringprovision is expected to be recognised once the necessary conditions are fulfilled. The
amount is expected to be between € 1.2 billion and € 1.6 billion.
The UK Serious Fraud Office (SFO) has requisitioned GPT Special Project Management Ltd(GPT) to appear in court for prosecution on a single corruption-related charge. GPT is a UK
company that operated in Saudi Arabia which was acquired by Airbus in 2007 and ceased
operations in April 2020. The SFO’s investigation related to contractual arrangements
originating prior to GPT’s acquisition and continuing thereafter. A resolution of GPT, whateverits form, will not affect the 31 January 2020 UK Deferred Prosecution Agreement and a value
has been provisioned in the Airbus accounts(3).
On 24 July 2020, the Company announced it had agreed with the governments of France
and Spain to make amendments to the A350 Repayable Launch Investment (RLI) contracts
to end the long-standing World Trade Organisation (WTO) dispute and remove any
justification for US tariffs. After 16 years of litigation at the WTO, this final step removes thelast contentious point by amending the French and Spanish contracts to what the WTO
considers the appropriate interest rate and risk assessment benchmarks(3).
Note to editors: Live Webcast of the Analyst Conference Call
At 08:15 CEST on 30 July 2020, you can listen to the H1 2020 Results Analyst Conference Call with Chief
Executive Officer Guillaume Faury and Chief Financial Officer Dominik Asam via the Airbus website. The
analyst call presentation can also be found on the company website. A recording will be made available in due
course. For a reconciliation of Airbus’ KPIs to “reported IFRS” please refer to the analyst presentation.

About Airbus
Airbus is a global leader in aeronautics, space and related services. In 2019, it generated revenues of € 70 billion
and employed a workforce of around 135,000. Airbus offers the most comprehensive range of passenger airliners.
Airbus is also a European leader providing tanker, combat, transport and mission aircraft, as well as one of theworld’s leading space companies. In helicopters, Airbus provides the most efficient civil and military rotorcraft
solutions worldwide.

Contact for the investors
Thorsten FISCHER
Institutionals and Analysts

Mohamed DENDEN
Institutionals and Analysts

Philippe GOSSARD
Institutionals and Analysts+33 5 67 19 02 64
thorsten.t.fischer@airbus.com+33 5 82 05 30 53
mohamed.denden@airbus.com+33 5 31 08 59 43
philippe.gossard@airbus.com

Page | 4

Consolidated Airbus – Half-Year (H1) Results 2020
(Amounts in Euro)
H1 2020

H1 2019

ChangeRevenues, in millions
thereof defence, in millions

18,948
4,092

30,866
4,085

-39%
0%

EBIT Adjusted, in millions

-945

2,529

-

EBIT (reported), in millions-1,5592,093-

Research & Development expenses, inmillions

1,396

1,423

-2%

Net Income/Loss(2), in millions-1,919

1,197-

Earnings/Loss Per Share

-2.45

1.54

-

Free Cash Flow (FCF), in millions-12,876-4,116-

Free Cash Flow before M&A, in millions-12,373-3,998-

Free Cash Flow before M&A andCustomer Financing, in millions-12,440-3,981-30 June 2020

31 Dec 2019

Change-586

12,534-135,154

134,9310%Consolidated Airbus

Consolidated Airbus
Net Cash/Debt position, in millions
Employees
For footnotes please refer to page 10.

Page | 5

By Business Segment

Revenues

EBIT (reported)(Amounts in millions ofEuro)

H1 2020

H1 2019(1)ChangeH1 2020

H1 2019(1)ChangeAirbus12,53324,043-48%-1,8082,006-

Airbus Helicopters

2,333

2,371

-2%

152

124

+23%

Airbus Defence and
Space

4,551

5,015

-9%

73

-15

-

Eliminations

-469

-563

-

24

-22

-

Total

18,94830,866-39%-1,5592,093-

By Business Segment

EBIT Adjusted(Amounts in millions ofEuro)

H1 2020

H1 2019(1)ChangeAirbus-1,307

2,193-

Airbus Helicopters

152

125

+22%

Airbus Defence and
Space

186

233

-20%

Eliminations

24

-22

-

Total

-945

2,529

-

By Business Segment

Order Intake (net)

Order Book

H1 2020

H1 2019

Change30 June
2020

30 June
2019

ChangeAirbus, in units

298

88

+239%

7,584

7,276

+4%

Airbus Helicopters, in
units

75

123

-39%

666

697

-4%

Page | 6

Airbus Defence andSpace, in millions of
Euro

4,220

5,588

+32%

N/A

N/A

N/A

For footnotes please refer to page 10.

Consolidated Airbus – Second Quarter (Q2) Results 2020
(Amounts in Euro)

Consolidated Airbus

Q2 2020

Q2 2019

ChangeRevenues, in millions

8,317

18,317-55%

EBIT Adjusted, in millions-1,226

1,980-

EBIT (reported), in millions-1,638

1,912-

Net Income/Loss , in millions-1,438

1,157-

Earnings/Loss Per Share (EPS)

-1.84

1.49

-

(2)

By Business Segment

Revenues

EBIT (reported)(Amounts in millions ofEuro)

Q2 2020

Q2 2019(1)ChangeQ2 2020

Q2 2019(1)ChangeAirbus

4,964

14,346-65%-1,865

1,687-

Airbus Helicopters

1,131

1,364

-17%

99

115

-14%

Airbus Defence and
Space

2,440

2,903

-16%

126

102

+24%

Eliminations

-218

-296

-

2

8

-75%

Total

8,317

18,317-55%-1,6381,912

By Business Segment-

EBIT Adjusted(Amounts in millions ofEuro)

Q2 2020

Q2 2019(1)ChangeAirbus-1,498

1,730-

Airbus Helicopters

99

110

-10%

Airbus Defence and
Space

171

132

+30%

Eliminations

2

8

-75%

-1,226

1,980

-

Total

For footnotes please refer to page 10.

Page | 7

Q2 2020 revenues decreased by 55%, mainly driven by lower deliveries at Airbus and Airbus
Helicopters, and lower revenues at Airbus Defence and Space.
Q2 2020 EBIT Adjusted of € -1,226 million reflected low commercial aircraft deliveries and
COVID-19 related charges.
Q2 2020 EBIT (reported) of € -1,638 million included net Adjustments of € -412 million. Net
Adjustments in the second quarter of 2019 amounted to € -68 million.
Q2 2020 Net Loss of € -1,438 million mainly reflected EBIT (reported) and the low effective
tax rate.

EBIT (reported) / EBIT Adjusted Reconciliation
The table below reconciles EBIT (reported) with EBIT Adjusted.
Consolidated Airbus(Amounts in millions of Euro)EBIT (reported)

H1 2020-1,559thereof:
A380 programme cost

-332

$ PDP mismatch/balance sheet
revaluation-165

Others-117

EBIT Adjusted-945

Page | 8

Glossary
KPI

DEFINITIONEBITThe Company continues to use the term EBIT (Earnings before interest and taxes). It is
identical to Profit before finance result and income taxes as defined by IFRS Rules.

Adjustment

Adjustment, an alternative performance measure, is a term used by the Company which
includes material charges or profits caused by movements in provisions related toprogrammes, restructuring or foreign exchange impacts as well as capital gains/losses fromthe disposal and acquisition of businesses.

EBIT Adjusted

The Company uses an alternative performance measure, EBIT Adjusted, as a key indicator
capturing the underlying business margin by excluding material charges or profits caused by
movements in provisions related to programmes, restructuring or foreign exchange impacts
as well as capital gains/losses from the disposal and acquisition of businesses.

EPS Adjusted

EPS Adjusted is an alternative performance measure of basic earnings per share asreported whereby the net income as the numerator does include Adjustments. For
reconciliation, see the Analyst presentation.

Gross cash

The Company defines its consolidated gross cash position as the sum of (i) cash and cash
equivalents and (ii) securities (all as recorded in the consolidated statement of financial
position).

position

Net cash position For the definition of the alternative performance measure net cash position, see Universal
Registration Document, MD&A section 2.1.6.
FCF

For the definition of the alternative performance measure free cash flow, see Universal
Registration Document, MD&A section 2.1.6.1. It is a key indicator which allows the Company
to measure the amount of cash flow generated from operations after cash used in investing
activities.

FCF before M&A Free cash flow before mergers and acquisitions refers to free cash flow as defined in the
Universal Registration Document, MD&A section 2.1.6.1 adjusted for net proceeds from
disposals and acquisitions. It is an alternative performance measure and key indicator thatreflects free cash flow excluding those cash flows resulting from acquisitions and disposals of
businesses.
FCF before M&A Free cash flow before M&A and customer financing refers to free cash flow before mergers
and acquisitions adjusted for cash flow related to aircraft financing activities. It is anand customer alternative performance measure and indicator that may be used occasionally by thefinancingCompany in its financial guidance, especially when there is higher uncertainty aroundcustomer financing activities.

Page | 9Footnotes:
Previous year figures are restated to reflect the adoption of a new segment reporting structure for1)“Transversal” activities as of 1 January 2020. Activities related to innovation and digital transformation, which wereformerly reported in “Transversal”, are now included in the business segment “Airbus” under the new segment
structure. “Eliminations” continue to be reported separately.
Airbus SE continues to use the term Net Income/Loss. It is identical to Profit/Loss for the period attributable2)
to equity owners of the parent as defined by IFRS Rules.
For more details on these legal developments, please refer to the Financial Statements and, in particular,
3)
note 24, “Litigation and claims” of the Unaudited Condensed Interim IFRS Consolidated Financial Information of
Airbus SE for the six-month period ended 30 June 2020 available on Airbus’ website (www.airbus.com).

Safe Harbour Statement:This press release includes forward-looking statements. Words such as “anticipates”, “believes”, “estimates”,“expects”, “intends”, “plans”, “projects”, “may” and similar expressions are used to identify these forward-looking
statements. Examples of forward-looking statements include statements made about strategy, ramp-up and delivery
schedules, introduction of new products and services and market expectations, as well as statements regarding
future performance and outlook.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events andcircumstances and there are many factors that could cause actual results and developments to differ materially fromthose expressed or implied by these forward-looking statements.
These factors include but are not limited to:▪
Changes in general economic, political or market conditions, including the cyclical nature of some of Airbus’
businesses;▪
Significant disruptions in air travel (including as a result of the spread of disease or terrorist attacks);▪
Currency exchange rate fluctuations, in particular between the Euro and the U.S. dollar;▪
The successful execution of internal performance plans, including cost reduction and productivity efforts;▪
Product performance risks, as well as programme development and management risks;▪
Customer, supplier and subcontractor performance or contract negotiations, including financing issues;▪
Competition and consolidation in the aerospace and defence industry;▪
Significant collective bargaining labour disputes;▪
The outcome of political and legal processes, including the availability of government financing for certain
programmes and the size of defence and space procurement budgets;▪
Research and development costs in connection with new products;▪
Legal, financial and governmental risks related to international transactions;▪
Legal and investigatory proceedings and other economic, political and technological risks anduncertainties;▪
The full impact of the COVID-19 pandemic and the resulting health and economic crisis.
As a result, Airbus SE’s actual results may differ materially from the plans, goals and expectations set forth in suchforward-looking statements.
For a discussion of factors that could cause future results to differ from such forward-looking statements, see Airbus
SE’s “2019 Universal Registration Document” dated 23 March 2020, including the Risk Factors section. For more
information about the impact of the COVID-19 pandemic, see note 2 “Impact of the spread of the COVID-19
pandemic” of the Notes to the Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2020 published 30 July 2020.
Any forward-looking statement contained in this press release speaks as of the date of this press release. Airbus
SE undertakes no obligation to publicly revise or update any forward-looking statements in light of new information,
future events or otherwise.
Rounding
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may notprecisely reflect the absolute figures.

Page | 10