Unaudited Condensed IFRS Consolidated
Financial Information of Airbus Group SE
for the year ended 31 December 2016
Unaudited Condensed IFRS Consolidated Income Statements .............................................................................. 2
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income ................................................ 3
Unaudited Condensed IFRS Consolidated Statements of Financial Position .......................................................... 4
Unaudited Condensed IFRS Consolidated Statements of Cash Flows ................................................................... 5
Unaudited Condensed IFRS Consolidated Statements of Changes in Equity ......................................................... 6
Notes to the Unaudited Condensed IFRS Consolidated Financial Statements as at 31 December 2016 ............... 7
1.

The Company ............................................................................................................................................ 72.

Accounting policies .................................................................................................................................... 7

3.

Acquisitions and disposals ........................................................................................................................ 8

4.

Segment information ............................................................................................................................... 10

5.

Revenues, gross margin and profit before finance result and income taxes ........................................... 12

6.

Finance result .......................................................................................................................................... 13

7.

Income tax ............................................................................................................................................... 13

8.

Earnings per share .................................................................................................................................. 13

9.

Intangible assets and property, plant and equipment .............................................................................. 14

10.

Investments accounted for under the equity method ............................................................................... 14

11.

Other investments and other long-term financial assets .......................................................................... 14

12.

Inventories ............................................................................................................................................... 14

13.

Other financial assets and other financial liabilities ................................................................................. 15

14.

Other assets and other liabilities.............................................................................................................. 15

15.

Total equity .............................................................................................................................................. 16

16.

Provisions ................................................................................................................................................ 16

17.

Cash flows, securities and financing liabilities ......................................................................................... 17

18.

Litigation and claims ................................................................................................................................ 18

19.

Number of employees ............................................................................................................................. 21

20.

Subsequent events .................................................................................................................................. 21

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

Unaudited Condensed IFRS Consolidated Income Statements

Note
Revenues

1 January 31 December 2016
In € million
In %6

1 January 31 December 2015
In € million
In %Deviation
In € million

66,581100

64,450100

2,131-61,317-92-55,599-86-5,718

5,264

8

8,851

14

-3,587

Selling, administrative and other expenses-2,977-5-2,873-5-104

Research and development
expenses-2,970-4-3,460-5

490

Other income

2,689

4

474

1

2,215

252

0

1,070

1

-818

2,258

3

4,062

6

-1,804

Interest income

247

0

183

0

64

Interest expense

-522

-1

-551

-1

29

Cost of sales
Gross margin

6

Share of profit from investments
under the equity method and otherincome from investments
Profit before finance result
and income taxes

6

Other financial result

-692

-1

-319

0

-373

Finance result

7

-967

-2

-687

-1

-280

Income taxes

8

-291

0

-677

-1

386

1,000

1

2,698

4

-1,698Equity owners of the parent(Net income)

995

1

2,696

4

-1,701

Non-controlling interests

5

0

2

0

3

Profit for the period
Attributable to:

€

€

€

Basic

1.29

3.43

-2.14

Diluted

1.29

3.42

-2.13

Earnings per share

9

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

2

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income
1 January 31 December 2016

1 January 31 December 2015

1,000

2,698

Actuarial gains or losses on defined benefit plans-1,649761

Actuarial gains or losses on defined benefit plans forinvestments accounted for using the equity method

-102

-36

Tax on items that will not be reclassified to profit or loss

365

-235

Foreign currency translation differences for foreign operations

-174

222

Net change in fair value of cash flow hedges-247-4,699(In € million)
Profit for the period
Items that will not be reclassified to profit or loss:

Items that will be reclassified to profit or loss:

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

-53

368

Changes in other comprehensive income frominvestments accounted for using the equity method

-35

-142

Tax on items that will be reclassified to profit or loss

-7

1,112

Other comprehensive income, net of tax-1,902-2,649Total comprehensive income of the period

-902

49

Equity owners of the parent

-917

76

Non-controlling interests

15

-27

Attributable to:

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

3

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

Unaudited Condensed IFRS Consolidated Statements of Financial Position

AssetsNon-current assets
Intangible assets
Property, plant and equipment
Investments 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 (1)Assets and disposal group of assets
classified as held for sale
Total assets (1)Note

31 December 2016
In € million In %31 December 2015
In € million In %Deviation
In € million In %

10
10
11

12,06816,918
1,608

11
15
2

12,555
17,193
1,326

12
16
1

-487
-275
282

-4
-2
21

12
14
15

3,655
976
2,358
7,557
9,897
55,037

3
1
2
7
9
50

2,492
1,096
2,166
6,759
9,851
53,438

2
1
2
7
9
50

1,163
-120
192
798
46
1,599

47
-11
9
12
0
3

29,688
8,101
522
1,257
2,576
1,110
1,551
10,14354,948

27
7
1
1
2
1
1
9
49

29,051
7,877
178
1,402
2,819
860
1,788
6,590
50,565

28
7
0
1
3
1
2
6
48

637
224
344
-145
-243
250
-237
3,553
4,383

2
3
193
-10
-9
29
-13
54
9

1,148
111,133

1
100

1,779
105,782

2
100

-631
5,351

-35
5

773
7,732
-4,845
-3
3,657
-5
3,652

0
7
-4
0
3
0
3

785
9,800
-4,316
-303
5,966
7
5,973

1
9
-4
0
6
0
6

-12
-2,068-529
300-2,309-12-2,321

-2
-21
12
-99
-39
-171
-39

17
18
14
15

10,826
8,791
13,313
16,567
1,292
50,789

10
8
12
15
1
46

9,871
6,335
14,03815,256
1,200
46,700

10
6
13
14
1
44

955
2,456
-725
1,311
92
4,089

10
39
-5
9
8
9

17
18

6,143
1,687
12,532
1,126
5,761
28,45255,701

6
2
11
1
5
26
51

5,209
2,790
10,864908
5,021
28,08652,878

5
2
10
1
5
27
50

934
-1,103
1,668
218
740
366
2,823

18
-40
15
24
15
1
5

991
107,481111,133

1
98
101

231
99,809105,782

0
94
100

760
7,672
5,351

329
8
5

18

13
12
14
15
18
18

3

Total equity (2)Equity attributable to equity owners of the parent
Capital stockReserves
Accumulated other comprehensive income
Treasury shares
Non-controlling interests
16
Liabilities
Non-current liabilities
Non-current provisions
Long-term financing liabilities
Non-current other financial liabilities
Non-current other liabilities
Deferred tax liabilities
Current liabilities
Current provisions
Short-term financing liabilities
Trade liabilities (1)Current tax liabilities
Current other financial liabilities
Current other liabilities
Disposal group of liabilities
classified as held for sale
Total liabilities (1)Total equity and liabilities (1)

14
15

3

(1) Investments made by Airbus Group SE in certain securities and trade liabilities have been reassessed and reclassified.
Previous year figures are adjusted by €-899 million.
(2) As of 31 December 2016, the accumulated other comprehensive income, previously classified within equity relating toassets and disposal groups classified as held for sale, amounts to €-56 million.
The accompanying notes are an integral part of these Unaudited Condensed IFRS Consolidated Financial Statements.
4

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

Unaudited Condensed IFRS Consolidated Statements of Cash Flows(In € million)

Note

Profit for the period attributable to equity owners of the parent (Net income)
Profit for the period attributable to non-controlling interests

1 January 31 December 2016

1 January 31 December 2015

995

2,696

5

2

Adjustments to reconcile profit for the period to cash provided by operating activities
Depreciation and amortization

2,294

2,466

Valuation adjustments

1,432

714

Deferred tax (income) expense

-462

16

Change in income tax assets, income tax liabilities and provisions for income tax

-70

-50

-1,870-234

Results of companies accounted for under the equity method-231-1,016

Change in current and non-current provisions

1,321

-54

Reimbursement from / contribution to plan assets

-290
1,245

-217
-1,432

4,369

2,891

-3,060-2,924

Results on disposals of non-current assets

Change in other operating assets and liabilities (1)Cash provided by operating activities (1) (2)18

Investment activities- Purchases of intangible assets, PPE- Proceeds from disposals of intangible assets, PPE

7278- Acquisitions of subsidiaries and joint ventures (net of cash)

-120

-13

- Proceeds from disposals of subsidiaries (net of cash)

731

127

- Payments for investments in associates and otherinvestments and long-term financial assets

-691

-258

- Proceeds from disposals of associates and otherinvestments and long-term financial assets

182

1,731
34

- Dividends paid by companies valued at equity

192

Disposal of assets, liabilities and disposal group classified as held for sale

1,527

127

Change in securities

337-2,361-830-3,459Financing activities
Change in long-term and short-term financing liabilities

1,572

992

Cash distribution to Airbus Group SE shareholders-1,008

-945

-4

-3

Cash (used for) investing activities

18

Dividends paid to non-controlling interests
Changes in capital and non-controlling interests
Share buyback
Cash (used for) financing activities

18

60

195

-736

-264

-116

-25

Net increase (decrease) of cash and cash equivalents

60
3,483

171
-422

Cash and cash equivalents at beginning of period (1)

6,677

7,099

10,1606,677

10,143

6,590

17

87

Effect of foreign exchange rate changes on cash and cash equivalents

Cash and cash equivalents at end of period(1)

Thereof presented as cash and cash equivalents (1)Thereof presented as part of disposal groups classified as held for sale
(1)

(2)

Investments made by Airbus Group SE in certain securities and trade liabilities have been reassessed and reclassified.
Previous year figures are adjusted accordingly (cash and cash equivalents at 31 December 2015: €-899 million, at 31
December 2014: €-190 million; change in other operating assets and liabilities for 2015: €-709 million).
The 2016 cash provided by operating activities has been positively impacted by certain agreements reached with theAirbus’ suppliers relating to the settlement of claims and negotiation on payment terms.

The accompanying notes are an integral part of these Unaudited Condensed IFRS Consolidated Financial Statements.
5

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

Unaudited Condensed IFRS Consolidated Statements of Changes in Equity(In € million)
Balance at 1 January 2015

Equityattributable
to equity ownersof the parent

Non-controllinginterests

7,061

18

Total
7,079

Profit for the period

2,696

2

2,698

Other comprehensive income-2,620-29-2,649

76

-27

49

-945

-3

-948

118

24

142

Total comprehensive income
Cash distribution to shareholders / dividends
to non-controlling interests
Capital increase
Equity transactions

61

-5

56

-487

0

-487

Share-based payment (IFRS 2)

29

0

29

Convertible bond

53

0

53

5,966

7

5,973

995

5

1,000

-1,91210-1,902

-917

15

-902

-1,008-4-1,012

60

0

60

38

-23

15

-513

0

-513

Share-based payment (IFRS 2)

31

0

31

Balance at 31 December 2016

3,657

-5

3,652

Change in treasury shares

Balance at 31 December 2015
Profit for the period
Other comprehensive income
Total comprehensive income
Cash distribution to shareholders / dividends
to non-controlling interests
Capital increase
Equity transactions
Change in treasury shares

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

6

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

Notes to the Unaudited Condensed IFRS Consolidated Financial Statements as at 31
December 2016
1. The Company
The accompanying Unaudited Condensed IFRS Consolidated Financial Statements present the financial position
and the results of operations of Airbus Group SE (the “Company”) and its subsidiaries, a European publiccompany (Societas Europaea) legally seated in Amsterdam (current registered office at Mendelweg 30, 2333 CS
Leiden, The Netherlands, under number 24288945), and are prepared and reported in Euros (“€”). On 1 January
2017, the Company has been further integrated by merging its Group structure with the commercial aircraft
activities of Airbus, with associated restructuring measures. In this new set-up, the Company will retain Airbus
Defence and Space and Airbus Helicopters as Divisions. The Company will change its name to Airbus SE; thelegal name change from Airbus Group SE to Airbus SE is still subject to the approval of the Annual General
Meeting due to be held on 12 April 2017. Therefore, the Company together with its subsidiaries will be referred
to as “Airbus” and no longer the Group. As a consequence, the segment formerly known as Airbus will now bereferred to as “Airbus Commercial Aircraft”; there are no changes to the segment reporting in 2016. Airbus corebusiness is the manufacturing of commercial aircraft, civil and military helicopters, commercial space launchvehicles, missiles, military aircraft, satellites, defence systems and defence electronics and rendering of services
related to these activities. The Unaudited Condensed IFRS Consolidated Financial Statements for the year ended
31 December 2016 were authorised for issue by the Company Board of Directors on 21 February 2017.

2. Accounting policies
The Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with
International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board(“IASB”) as endorsed by the European Union (“EU”) as at 31 December 2016 and Part 9 of Book 2 of theNetherlands Civil Code.
Use of estimates and judgment
In preparing Airbus’ Unaudited Condensed Consolidated Financial Statements, Airbus’ management makes
assumptions and estimates. The underlying assumptions used for the main estimates are similar to thosedescribed in Airbus’ Consolidated Financial Statements as of 31 December 2015. Changes in the underlying
circumstances in light of new information are described in the notes of the Unaudited Condensed Consolidated
Financial Statements.

7

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

3. Acquisitions and disposals
Acquisitions
On 9 March 2016, Airbus Commercial Aircraft acquired 100% of the shares of the Navtech Inc. Group(“Navtech”), a leading global provider of flight operations solutions, and has recognised goodwill of €104 million.
The one year window period for the completion of the purchase price allocation will end on 9 March 2017.
Navtech provides aviation services with a suite of flight operations products, aeronautical charts, navigation datasolutions, flight planning, aircraft performance and crew planning solutions. Navtech generates annual revenuesof approximately US$40 million and employs over 250 employees, mainly based in Waterloo (Canada) and in
Hersham and Cardiff (UK).
Disposals
On 17 June 2015, Airbus Commercial Aircraft signed an agreement with Singapore-based ST Aerospace Ltd.
(“STA”) to offer passenger-to-freighter (“P2F”) conversion solutions for its A320 and A321 aircraft. Elbe
Flugzeugwerke’s (“EFW”), Dresden (Germany), assets and liabilities were classified as disposal groups held forsale as of 31 December 2015. On 4 January 2016, STA acquired an additional 20% of the shares by way of acontribution in kind and a capital increase to EFW, and consequently, Airbus lost the control of EFW. Airbus
retains 45% of the shares of EFW with significant influence. Airbus Commercial Aircraft has recognised in otherincome a €19 million gain during the year.
On 2 June 2016, Airbus DS Holding SAS (France) and Astrium International Holdings B.V. (Netherlands), as
beneficiaries, and a French private equity firm, Apax Partners, closed the sale of the business communications
entities. The assets and liabilities of these entities were previously classified as disposal groups held for sale.
The gain resulting from this transaction of €146 million is recognised in other income (reported in Airbus Defence
and Space Division).
On 14 June 2016, Airbus Group SAS sold approximately 1.33 million shares in Dassault Aviation, around 62%
to institutional investors and 38% to Dassault Aviation, at a price of €950 per share. The total gain on thesetransactions amounted to €528 million recognised in other income (reported in “Other/HQ/Conso.”).
The remaining investment, representing 10% of Dassault Aviation’s share capital, is classified as otherinvestments and measured at fair value (see Note 12 “Other investments and other long-term financial assets”).
The resulting gain of €340 million is recognised in other income (reported in “Other/HQ/Conso.”). Previously, theinvestment in Dassault Aviation was classified as asset held for sale.
The Company also issued bonds exchangeable in Dassault Aviation shares (see Note 18 “Cash flows, securities
and financing liabilities – Financing liabilities”). In the event of exchange in full of the bonds, Airbus will have fully
disposed its Dassault Aviation stake.
On 14 January 2015, Airbus and Safran completed the first phase of the integration process of Airbus Safran
Launchers (“ASL”) enabling the entity to become operational. Coordination and programme management of thecivil activities of the launcher business as well as relevant participations were transferred to ASL. On 16 June
2015, ASL, the French state and the Centre National d'Etudes Spatiales (“CNES”), the French space agency,
reached an agreement to transfer CNES's stake in Arianespace to ASL, which was authorised on 20 July 2016 by
the European Commission. On 12 August 2015, ASL was awarded the Ariane 6 development contract by theEuropean Space Agency (“ESA”).

8

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

On 20 May 2016, Airbus and Safran signed the second phase of the Master Agreement enabling the joint venture
to be fully equipped for all design, development, production and commercial activities related to civil and military
launchers and associated propulsion systems. On 30 June 2016, Airbus contributed the second phase assets andliabilities in exchange for shares issued by Airbus Safran Launchers Holding, and also sold additional assets in
exchange for €750 million in cash. Airbus participation in ASL accounted for at-equity amounts to €677 million.
The loss of control in the business resulted in a capital gain of €1,175 million recognised in other income (reported
in Airbus Defence and Space Division).
Airbus and Safran finalised the respective contribution balance sheet in the third quarter 2016 in alignment withthe provision of the Master Agreement. On 31 December 2016, the transfer of the 34.68% of CNES’s stake in
Arianespace to ASL was completed. ASL holds 74% of the shares of Arianespace. This change in theshareholder mix at Arianespace finalises the creation of a new launcher governance in Europe.
The allocation of the purchase price is ongoing at ASL level and is expected to be finalised during the one year
window period ending on 30 June 2017. As a result of this preliminary allocation, €7 million depreciation expense
net of tax was recognised during the year 2016.
Assets and disposal groups classified as held for sale
As of 31 December 2016, Airbus accounted for assets and disposal groups of assets classified as held forsale in the amount of €1,148 million (prior year-end: €1,779 million). Disposal group of liabilities classified asheld for sale as of 31 December 2016 amount to €991 million (prior year-end: €231 million). The assets anddisposal groups classified as held for sale are related to the defence electronics companies and Atlas Elektronik
GmbH (“Atlas”).
On 18 March 2016, Airbus reached an agreement with affiliates of KKR & Co. L.P. (the acquirer) to sell its
defence electronics business, a leading global provider of mission-critical sensors, integrated systems andservices for premium defence and security applications mainly based in Ulm (Germany). Such divestment is partof the strategic review of the Airbus Defence and Space business portfolio. The transaction is expected to beclosed within 12 months of the date of the agreement. The assets and liabilities relative to this disposal group
have been classified as held for sale since 31 March 2016.
On 20 December 2016, Airbus signed a sale purchase agreement to sell to Thyssen Krupp its 49% stake inAtlas.
Airbus has entered into various transactions with related entities that have all been carried out in the normal
course of business.
Airbus participates in the UK in several funded trustee-administered pension plans. In some of these, BAE
Systems is the principal employer. On 2 April 2016, the scheme trustees have approved the allocation of the
deficit of the BAE Systems Pension Scheme (“Main Scheme”) to BAE Systems and Airbus (“sectionalisation”).

9Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

4. Segment information
Airbus operates in three reportable segments which reflect the internal organizational and management structure
according to the nature of the products and services provided.
•

Airbus Commercial Aircraft (formerly Airbus) — Development, manufacturing, marketing and sale ofcommercial jet aircraft of more than 100 seats; aircraft conversion and related services; development,
manufacturing, marketing and sale of regional turboprop aircraft and aircraft components.

•

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

•

Airbus Defence and Space — 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 securecommunication solutions and logistics; training, testing, engineering and other related services;development, manufacturing, marketing and sale of missile systems; development, manufacturing,marketing and sale of satellites, orbital infrastructures and launchers; provision of space related services;development, manufacturing, marketing and sale of military transport aircraft and special mission aircraft
and related services.

The following table presents information with respect to the Airbus’ business segments. As a rule, inter-segment
transfers are carried out on an arm’s length basis. Inter-segment sales predominantly take place between Airbus
Commercial Aircraft and Airbus Defence and Space and between Airbus Helicopters and Airbus Commercial
Aircraft. The holding function of Airbus’ Headquarters, the Airbus Group Bank and other activities not allocable to
the reportable segments, combined together with consolidation effects, are disclosed in the column“Other/HQ/Conso.”.

10

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

Business segment information for the year ended 31 December 2016:(In € million)
Total revenues

AirbusCommercial
Aircraft

AirbusHelicopters

AirbusDefenceand Space

49,237

6,652

11,854

Total
Other/
segments HQ/Conso.
67,74357

Consolidated
67,800

-646

-448

-118

-1,212-7-1,219

Revenues

48,591

6,204

11,736

66,531

50

66,581

Research anddevelopment expenses-2,147-327-332-2,806-164-2,970

Profit before financeresult and income taxes

1,543

308

-93

1,758

500

2,258

Internal revenues

Finance result-967

Income taxes-291

Profit for the period

1,000Business segment information for the year ended 31 December 2015:
AirbusCommercial
Aircraft

AirbusHelicopters

AirbusDefenceand Space

Total revenues

45,854

6,786

13,08065,720296

66,016

Internal revenues

-764

-633

-163

-1,560-6-1,566(In € million)

Total
Other/
segments HQ/Conso.

Consolidated

Revenues

45,0906,153

12,91764,160290

64,450Research anddevelopment expenses-2,702-325-344-3,371-89-3,460

Profit before financeresult and income taxes

2,287

427

736

3,450

612

4,062

Finance result-687

Income taxes-677

Profit for the period

2,698

11

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

5. Revenues, gross margin and profit before finance result and income taxes
Revenues of €66,581 million (2015: €64,450 million) increased by €+2,131 million, mainly at Airbus Commercial
Aircraft (€+3,383 million), mostly driven by a positive volume effect and a favourable foreign exchange impact.
This increase is partially offset by a decrease at Airbus Defence and Space (€-1,226 million) mainly due toperimeter changes for defence activities (see Note 3 “Acquisitions and disposals”).
The gross margin decreased by €-3,587 million to €5,264 million compared to €8,851 million in 2015, mainly at
Airbus Defence and Space and Airbus Commercial Aircraft. This includes net charges recorded in 2016 in Airbus
Defence and Space for €2,210 million on the A400M programme and in Airbus Commercial Aircraft for €385
million on the A350 XWB programme. The gross margin rate decreased from 13.7% to 7.9%.
In 2016, Airbus Commercial Aircraft has delivered 49 A350 XWB aircraft, including to 7 new customers.
To reflect expected lower revenues escalation, increased learning curve costs and delivery phasing, Airbus
Commercial Aircraft recorded a net charge of €385 million on A350 XWB loss making contracts in the second
quarter 2016.
The industrial ramp-up is progressing and associated risks continue to be closely monitored in line with theschedule, aircraft performance and overall cost envelope, as per customer’s commitment. Despite the progress
made, challenges remain with the ramp-up acceleration and recurring costs convergence.
17 A400M aircraft were delivered during 2016. Acceptance activities of one additional aircraft were finalised at theend of December 2016, but transfer of title only took place on 1 January 2017 (corresponding revenues will berecognised in 2017). In total, 38 aircraft have now been delivered to the customer as of 31 December 2016.
Industrial efficiency and military capabilities remain a challenge for the A400M programme and furthermore, the
EASA Airworthiness Directive, linked to the Propeller Gear Box (“PGB”) on the engine, and various PGB quality
issues have strongly impacted the customer delivery programme.
The first major development milestone of the mission capability roadmap defined with customers earlier in 2016
was successfully completed in June with certification and delivery of “MSN 33”, the ninth aircraft for the Frenchcustomer, however achievement of contractual technical capabilities remains challenging.
In the first half-year 2016, management reviewed the programme evolution and estimated contract result
incorporating the implications at this time of the revised engine programme and its associated recovery plan,
technical issues related to the aluminium alloy used for some parts within the aircraft, recurring cost convergenceissues, an updated assumption of export orders during the launch contract phase and finally some delays,
escalation and cost overruns in the development programme. During the second half-year 2016, the programme
encountered further challenges to meet military capabilities and management reassessed the industrial cost of the
programme, now including an estimation of the commercial exposure. As a result of these reviews, Airbus
Defence and Space has recorded a charge of € 2,210 million in 2016 (thereof € 1,026 million in the first half-year2016). This represents the current best management assessment. Challenges remain on meeting contractual
capabilities, securing sufficient export orders in time, cost reduction and commercial exposure, which could besignificant. Given the order of magnitude on the cumulative programme loss, the Board of Directors has
mandated the management to re-engage with customers to cap the remaining exposure.
The A400M contractual SOC 1, SOC 1.5 and SOC 2 milestones remain to be achieved. SOC 1 fell due end
October 2013, SOC 1.5 fell due end December 2014, and SOC 2 end of December 2015. The associatedtermination rights became exercisable by OCCAR on 1 November 2014, 1 January 2016, and 1 January 2017,
respectively. Management judges that it is highly unlikely that any of these termination rights will be exercised.

12

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

The profit before finance result and income taxes decreased by €-1,804 million to €2,258 million compared to€4,062 million in 2015, mainly driven by the decrease in gross margin and in share of profit from investments
under the equity method and other income from investments, partly compensated by an increase in other income.
Share of profit from investments under the equity method and other income from investments decreasedby €-818 million to €252 million compared to €1,070 million in 2015. In 2015, it included a net gain of €674 million
from the partial sale of Dassault Aviation shares. Other income increased by €+2,215 million to €2,689 million
compared to €474 million in 2015. This increase is mainly due to the capital gain of €1,175 million following thecompletion of the creation of ASL, the capital gain of €146 million from the sale of the business communication
entities, the capital gain from the sale of Dassault Aviation shares of €528 million and the revaluation at fair valueof the remaining investment in Dassault Aviation for €340 million (see Note 3 “Acquisitions and disposals”).

6. Finance result
Finance result deteriorated by €-280 million to €-967 million compared to €-687 million in 2015. This is mainly
related to a negative impact from revaluation of financial instruments of €-251 million.

7. Income tax
The income tax expense of €-291 million (2015: €-677 million) corresponds to an effective tax rate of 22.5%(2015: 20.1%). This effective tax rate is due to the sale of shares of Dassault Aviation and the creation of ASL,
both subject to specific tax treatment (see Note 3 “Acquisitions and disposals). These were partially compensatedby additional income tax charges including the planned reduction of the income tax rate in France from 34.43% to28.92% enacted in December 2016.

8. Earnings per share

1 January 31 December 2016

1 January 31 December 2015

Profit for the period attributable to equity owners of the parent(Net income)€995 million€2,696 million

Weighted average number of ordinary shares outstanding

773,798,837

785,621,099

€1.29

€3.43

Basic earnings per share

Basic earnings per share

Diluted earnings per share – Airbus’ categories of dilutive potential ordinary shares are Stock Option Plan(“SOP”), share-settled Performance Units relating to Long-Term Incentive Plans and the convertible bond issued
on 1 July 2015. The last SOP expired in December 2016. During 2016, the average price of the Company’s
shares exceeded the exercise price of the share-settled Performance Units and therefore 287,807 shares (in2015: 359,335 shares) were considered in the calculation of diluted earnings per share. The dilutive effect of theconvertible bond was also considered in the calculation of diluted earnings per share in 2016, by adding back
€7 million of interest expense to the profit for the period attributable to equity owners of the parent (in 2015:€3 million) and by including 5,022,990 of dilutive potential ordinary shares (2015: 2,511,495 shares).

1 January 31 December 2016

1 January 31 December 2015

Profit for the period attributable to equity owners of the parent(Net income)€1,002 million€2,699 million

Weighted average number of ordinary shares outstanding(diluted)(1)779,109,634

788,491,929

€1.29

€3.42

Diluted earnings per share

Diluted earnings per share(1) Dilution assumes conversion of all potential ordinary shares
13

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

9. Intangible assets and property, plant and equipment
Intangible assets decreased by €-487 million to €12,068 million (prior year-end: €12,555 million) mainly due tothe reclassification of defence electronics entities to disposal groups classified as held for sale and the creation of
ASL, partially compensated by the acquisition of Navtech (see Note 3 “Acquisitions and disposals”).
Intangible assets mainly relate to goodwill of €9,425 million (prior year-end: €9,907 million).
The annual impairment tests were performed in the fourth quarter 2016 and led to no impairment charge.
Property, plant and equipment decreased by €-275 million to €16,918 million (prior year-end: €17,193 million)
mainly at Airbus Defence and Space (€-611 million), primarily driven by the entities both disposed of andreclassified to disposal groups classified as held for sale (see Note 3 “Acquisitions and disposals”), partly
compensated by an increase at Airbus Commercial Aircraft (€+350 million). Property, plant and equipment also
includes leased assets of €116 million (prior year-end: €118 million) and investment property amounting to €5
million (prior year-end: €66 million).

10. Investments accounted for under the equity method
Investments accounted for under the equity method increased by €+282 million to €1,608 million (prioryear-end: €1,326 million) mainly due to the increase of Airbus participation in ASL following finalisation of the joint
venture creation, partly compensated by the reclassification of the share in Atlas Group to disposal groups
classified as held for sale (see Note 3 “Acquisitions and disposals”).

11. Other investments and other long-term financial assets
Composition of other investments and other long-term financial assets:(In € million)

31 December 201631 December 2015

Other investments

2,091

1,232

Other long-term financial assets

1,564

1,260

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

3,655

2,492

522

178

4,177

2,670

Current portion of other long-term financial assets
Total

Other investments and other long-term financial assets increased by €+1,507 million to €4,177 million(prior year-end: €2,670 million) mainly due to the reclassification of the remaining investment in Dassault Aviation
to other investments (see Note 3 “Acquisitions and disposals”).
Other long-term financial assets mainly comprise the aircraft financing activities.

12. Inventories
Inventories of €29,688 million (prior year-end: €29,051 million) increased by €+637 million. This is driven by
Airbus Commercial Aircraft (€+2,221 million), and mainly reflects an increase in work in progress associated with
A350 XWB ramp-up. This increase was partly compensated by a decrease in Airbus Defence and Space (€-1,295
million), mainly related to the reclassification of defence electronics entities to disposal groups classified as held
for sale and the creation of ASL (see Note 3 “Acquisitions and disposals”). It is also related to a decrease in workin progress for the A400M reflecting the netting inventories with the respective portion of the loss making
contracts provision (see Note 17 “Provisions”).

14Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

13. Other financial assets and other financial liabilities
Composition of other financial assets:(In € million)

31 December 201631 December 2015

Positive fair values of derivative financial instruments

893

931

Others83

165

Total non-current other financial assets

976

1,096

Receivables from related companies

517

616

Positive fair values of derivative financial instruments

258

349

Others482

437

Total current other financial assets

1,257

1,402

Total

2,233

2,498

31 December 201631 December 2015

European Governments refundable advances

6,340

6,716

Liabilities for derivative financial instruments

6,544

6,703

429

619

13,313

14,038Composition of other financial liabilities:(In € million)

OthersTotal non-current other financial liabilities
European Governments refundable advances

730

570

Liabilities for derivative financial instruments

4,476

3,884

555

567

Total current other financial liabilities

5,761

5,021

Total

19,074

19,05931 December 201631 December 2015

2,265

2,051

93

115

Total non-current other assets

2,358

2,166

VAT receivables

1,589

1,450

Prepaid expenses

552

663

Other

435

706

Total current other assets

2,576

2,819

Total

4,934

4,985

Others

14. Other assets and other liabilities
Composition of other assets:(In € million)
Prepaid expenses
Others15

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

Composition of other liabilities:(In € million)

31 December 201631 December 2015

15,714

14,472

565

521

288

263

16,567

15,256

Customer advance payments

24,11523,612

Tax liabilities (excluding income tax)

1,047

885

Others

2,373

2,540

917

1,049

Total current other liabilities

28,452

28,086

Total

45,01943,342Other liabilities
Customer advance payments
OthersDeferred income
Total non-current other liabilities
Other liabilities

Deferred income

15. Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts to€3,657 million (prior year-end: €5,966 million) representing a decrease of €-2,309 million. This is due to a dividend
payment of €-1,008 million (€1.30 per share), the 2016 portion of share buyback programme of €-513 million,
which was completed during the second quarter 2016 for a total of €1 billion, and a reduction in othercomprehensive income of €-1,912 million principally related to revaluation of the defined benefit plans (see Note
17 “Provisions”). This decrease was partly offset by a net income for the period of €+995 million.
The total number of shares issued is 772,912,869 and 785,344,784 as of 31 December 2016 and 31 December
2015, respectively. The Company’s shares are exclusively ordinary shares with a par value of €1.00.
During 2016, the number of treasury stock held by the Company decreased to 184,170 compared to 1,474,057 asof 31 December 2015. No shares were sold back to the market, and 14,131,131 shares were cancelled (in 2015:
2,885,243 shares).
In 2016, the Company issued 224,500 (in 2015: 1,910,428) new shares due to the exercise of stock options and1,474,716 new shares due to the 2016 Employee Stock Ownership Plan (in 2015: 1,539,014 shares).
Non-controlling interests decreased to €-5 million (prior year-end: €7 million). This decrease results mainly fromthe change in consolidation method of EFW (see Note 3 “Acquisitions and disposals”).

16. Provisions
Provisions are comprised of the following:(In € million)

31 December 201631 December 2015

Provisions for pensions

8,656

7,615

Other provisions

8,313

7,465

Total

16,96915,080

Thereof non-current portion

10,826

9,871

Thereof current portion

6,143

5,209

16

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

Provisions for pensions increased mainly due to a decrease of the discount rates for the various pension
schemes of Airbus (France: from 2.5% to 1.9%, Germany: from 2.4% to 1.7% and UK from 3.9% to 2.6%).
Other provisions are presented net of programme losses against inventories (see Note 13 “Inventories”) andincreased by €+848 million mainly due to the A400M net charge recorded in 2016.
The agreement on insurance reimbursement that was under negotiation at year-end 2015 was settled during thefirst half-year 2016.
An additional provision of €160 million related to restructuring measures has been recorded at year-end 2016
following the announcement in September 2016 of the merger of the Group structure with the commercial aircraft
activities of its largest division Airbus Commercial Aircraft to increase future competitiveness. Accordingly, a plan
including temporary contract termination, non-replacement of attrition, redeployment, partial and early retirement
as well as voluntary leaves in Germany, France, the UK and Spain has been communicated to the employees
and the European Works Council in November 2016.
In the Airbus Helicopters, the business has been reassessed in 2016 leading to a restructuring provision of €42
million.
In 2016, after reassessing and adjusting the restructuring provision recorded in 2013 in Airbus Defence andSpace and Headquarters, €20 million has been released.
An H225 Super Puma helicopter was involved in an accident on 29 April 2016. Management is cooperating fully
with the authorities to determine the precise cause of the accident. On the basis of recent developments, anestimate of the related future costs has been prepared and consequently a provision has been recorded in theaccounts as of 31 December 2016.
Airbus makes estimates and provides, across the programmes, for costs related to in service technical issues
which have been identified and for which solutions have been defined, which reflects the latest facts andcircumstances. Airbus is contractually liable for the repair or replacement of the defective parts but not for any
other damages whether direct, indirect, incidental or consequential (including loss of revenue, profit or use).
However, in view of overall commercial relationships, contract adjustments may occur, and be considered on acase by case basis.

17. Cash flows, securities and financing liabilities
Cash flows
Cash provided by operating activities amounts to €4,369 million (2015 adjusted: €2,891 million). Gross cash
flow from operations (before changes in other operating assets and liabilities) amounts to €+3,124 million (2015:€+4,323 million). Changes in other operating assets and liabilities amount to €1,245 million (2015 adjusted:€-1,432 million).
Cash used for investing activities amounts to €-830 million (2015: €-3,459 million). This includes the impact of
disposals which occurred during 2016 (see Note 3 “Acquisitions and disposals”) for a total of €+2,440 million(2015: €+1,985 million). This was partly offset by purchases of intangible assets and property, plant andequipment of €-3,060 million (2015: €-2,924 million).
Cash used for financing activities amounts to €-116 million (2015: €-25 million). This mainly compriseschanges in long-term and short-term financing liabilities of €+1,572 million (2015: €+992 million) mainly due to theissuance of bonds (see Note 18 “Cash flows, securities and financing liabilities – Financing liabilities”), in part
offset by a dividend payment of €1.30 per share which amounts to €-1,008 million (2015: €-945 million) and theshare buyback programme of €-736 million (2015: €-264 million).

17

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

Securities
Non-current securities with a remaining maturity of more than one year increased by €+46 million to €9,897
million (prior year-end: €9,851 million). The movement is related to the cash management policy of Airbus.
Current securities with a remaining maturity of one year or less decreased by €-237 million to €1,551
million(prior year-end: €1,788 million).
Financing liabilities
Composition of financing liabilities:(In € million)

31 December 201631 December 2015

Bonds

6,013

3,443

Liabilities to financial institutions

2,072

2,113

Loans

331

403

Liabilities from finance leases

374

375

1

1

8,791

6,335

0

1,523

Liabilities to financial institutions

351

349

Loans

332

255

Liabilities from finance leases

15

13

Others

989

650

1,687

2,790

OthersLong-term financing liabilities
Bonds

Short-term financing liabilities

The increase in long-term financing liabilities is mainly related to the issuance of bonds (€+2.6 billion).
The increase in bonds corresponds to a bond issued on 13 May 2016, for a total of €1.5 billion, with a
10 year-maturity tranche of €600 million at a 0.875% coupon, and a 15 year-maturity tranche of €900 million at a1.375% coupon. Additionally, exchangeable bonds to be convertible into Dassault Aviation shares were issued for€1,078 million on 14 June 2016, with a 5 year-maturity. These bonds bear a coupon of 0% and were issued at103.75% of par. Their effective interest rate, after separation of the equity conversion option, is 0.6415% (seeNote 3 “Acquisitions and disposals”).
The decrease in short-term financing liabilities is mainly related to the maturingof a bond and lower

commercial paper programmes (€-1.5 billion).

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

18

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

WTO
Although Airbus is not a party, Airbus is supporting the European Commission in litigation before the WTO.
Following its unilateral withdrawal from the 1992 EU-US Agreement on Trade in Large Civil Aircraft, the US
lodged a request on 6 October 2004 to initiate proceedings before the WTO. On the same day, the EU launched aparallel WTO case against the US in relation to its subsidies to Boeing. On 19 December 2014, the European
Union requested WTO consultations on the extension until the end of 2040 of subsidies originally granted by theState of Washington to Boeing and other US aerospace firms until 2024.
On 1 June 2011, the WTO adopted the Appellate Body’s final report in the case brought by the US assessing
funding to Airbus Commercial Aircraft 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, andto comply with the WTO’s recommendations and rulings. Because the US did not agree, the matter is now under
WTO 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. On 23 September 2012, the US informed the WTO that it had taken appropriate
steps to bring its measures fully into conformity with its WTO obligations, and to comply with the WTO’s
recommendations and rulings. Because the EU did not agree, the matter is now under WTO review pursuant to
WTO rules.
Exact timing of further steps in the WTO litigation process is subject to further rulings and to negotiations between
the US and the EU. Unless a settlement, which is currently not under discussion, is reached between the parties,
the litigation is expected to continue for several years.
GPT
Promptedbyawhistleblower’s

allegations,Airbusconducted

internal

auditsandretained

PricewaterhouseCoopers (“PwC”) to conduct an independent review relating to GPT Special Project Management
Ltd. (“GPT”), a subsidiary that Airbus acquired in 2007. The allegations called into question a service contract
entered into by GPT prior to its acquisition by Airbus, relating to activities conducted by GPT in Saudi Arabia.
PwC’s report was provided by Airbus to the UK Serious Fraud Office (the “SFO”) in March 2012. In the period
under review and based on the work it undertook, nothing came to PwC’s attention to suggest that improper
payments were made by GPT. In August 2012, the SFO announced that it had opened a formal criminal
investigation into the matter. Airbus is in continuing engagement with the authorities.
Eurofighter Austria
In March 2012, the German public prosecutor, following a request for assistance by the Austrian publicprosecutor, launched a criminal investigation into alleged bribery, tax evasion and breach of trust by current andformer employees of EADS Deutschland GmbH (renamed on 1 July 2014 Airbus Defence and Space GmbH) andEurofighter Jagdflugzeug GmbH as well as by third parties relating to the sale of Eurofighter aircraft to Austria in
2003. After having been informed of the investigation in 2012, Airbus retained the law firm Clifford Chance toconduct a fact finding independent review. Upon concluding its review, Clifford Chance presented its fact finding
report to Airbus in December 2013. Airbus provided the report to the public prosecutors in Germany. Airbus’
request for access to the prosecutor’s file is pending. Airbus Defence and Space GmbH settled with the tax
authorities in August 2016 on the question of deductibility of payments made in connection with the Eurofighter
Austria campaign. In February 2017, the Austrian Federal Ministry of Defence has raised criminal allegations
against Airbus Defence and Space GmbH for wilful deception and fraud in the context of the sale of theEurofighter aircraft to Austria and respective damage claims. Airbus is cooperating fully with the authorities.

19

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

Investigation by the UK SFO into Civil Aviation BusinessIn the context of review and enhancement of its internal compliance improvement programme, Airbus discovered
misstatements and omissions relating to information provided in respect of third party consultants in certain
applications for export credit financing for Airbus customers. In early 2016 Airbus informed the UK, German andFrench Export Credit Agencies (“ECAs”) of the irregularities discovered. Airbus made a similar disclosure to the
UK Serious Fraud Office (“SFO”). In August 2016, the SFO informed Airbus that it had opened an investigation
into allegations of fraud, bribery and corruption in the civil aviation business of Airbus relating to irregularities
concerning third party consultants (business partners). Airbus is cooperating fully with the SFO. The SFO
investigation and any enforcement action potentially arising as a result could have negative consequences for
Airbus. The potential imposition of any monetary penalty (and the amount thereof) arising from the SFO
investigation would depend on factual findings, and could have a material impact on the financial statements,
however at this stage it is too early to determine the likelihood or extent of any liability. Investigations of thisnature could also result in (i) civil claims or claims by shareholders against Airbus (ii) adverse consequences on
Airbus’ ability to obtain or continue financing for current or future projects (iii) limitations on the eligibility of groupcompanies for certain public sector contracts and/or (iv) damage to Airbus’ business or reputation via negative
publicity adversely affecting Airbus’ prospects in the commercial market place.
ECA Financing
ECA financing continues to be suspended. Airbus is working with the relevant ECAs to re-establish ECA
financing.
Other investigations
In October 2014 the Romanian authorities announced an investigation relating to a border surveillance project inRomania. Airbus confirms that Airbus Defence and Space GmbH had been informed that the German prosecution
office is also investigating potential irregularities in relation to this project, a project in Saudi Arabia and a projectof Tesat-Spacecom GmbH & Co. KG. The public prosecutor in Germany has launched administrative proceedingsin the context of those investigations against Airbus Defence and Space GmbH and Tesat-Spacecom GmbH &Co. KG. Airbus has cooperated fully with the authorities. In October 2016, the German authorities announced thatthey were dropping their investigations into the Romanian and Saudi projects. The tax authorities may challenge
the tax treatment of business expenses in connection with the Romanian and Saudi projects.
In 2013 public prosecutors in Greece and Germany launched investigations into a current employee and former
managing directors and employees of Atlas Elektronik GmbH (“Atlas”), a joint company of ThyssenKrupp andAirbus, on suspicion of bribing foreign officials and tax evasion in connection with projects in Greece. The publicprosecutor in Germany has launched an administrative proceeding for alleged organisational and supervisory
shortfalls against Atlas. The authorities in Greece have launched civil claims against Atlas. In 2015 the publicprosecutor in Germany launched another investigation into current and former employees and managing directorsof Atlas on suspicion of bribery and tax evasion in connection with projects in Turkey and extended theinvestigation in 2016 to five current and former employees of Atlas’ shareholders. A further investigation was also
launched against two former Atlas employees on suspicion of bribery in connection with projects in Pakistan. In
2016 two further investigations were started by the Bremen public prosecutor with regard to operations inIndonesia and Thailand. With the support of its shareholders, Atlas is cooperating fully with the authorities and isconducting its own internal investigation. Settlement talks with the Bremen public prosecutor started in November
2016.
Airbus is cooperating with a judicial investigation against unknown persons in France related to Kazakhstan.
Airbus is cooperating with French judicial authorities pursuant to a request for mutual legal assistance made by
the government of Tunisia in connection with historical aircraft sales.

20

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2016

Review of business partner relationships
In light of regulatory investigations and commercial disputes, including those discussed above, Airbus has
determined to enhance certain of its policies, procedures and practices, including ethics and compliance. Airbus isaccordingly in the process of revising and implementing improved procedures, including those with respect to its
engagement of consultants and other third parties, in particular in respect of sales support activities and isconducting enhanced due diligence as a pre-condition for future or continued engagement and to inform decisions
on corresponding payments. Airbus has therefore engaged legal, investigative, and forensic accounting expertiseof the highest calibre to undertake a comprehensive review of all relevant third party business consultant
relationships and related subject matters. Airbus believes that these enhancements to its controls and practices
will best position it for the future, particularly in light of advancements in regulatory standards. Certain consultants
and other third parties have initiated commercial litigation and arbitration against Airbus. The comprehensive
review and these enhancements of its controls and practices may lead to additional commercial disputes or othercivil law or criminal law consequences in the future, which could have a material impact on the financial
statements, however at this stage it is too early to determine the likelihood or extent of any liability.
Commercial disputes
In May 2013, Airbus has been notified of a commercial dispute following the decision taken by Airbus to cease apartnership for sales support activities in some local markets abroad. Airbus believes it has solid grounds tolegally object to the alleged breach of a commercial agreement. However, the consequences of this dispute andthe outcome of the proceedings cannot be fully assessed at this stage. The arbitration will not be completed until
2018 at the earliest.
In the course of another commercial dispute, Airbus received 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 dispute iscurrently the subject of arbitration.

19. Number of employees
The number of employees as at 31 December 2016 is 133,782 as compared to 136,574 as at 31 December 2015.

20. Subsequent events
On 1 January 2017, Airbus Group has been further integrated by merging its Group structure with the commercial
aircraft activities of Airbus, with associated restructuring measures. In this new set-up, the company will retain
Airbus Defence and Space and Airbus Helicopters as divisions.

21