2014
ANNUAL REPORTFINANCIALSTATEMENTS

2014
ANNUAL REPORTFINANCIALSTATEMENTS
2014

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AIRBUS GROUP FINANCIAL STATEMENTS 2014

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2014

FINANCIALSTATEMENTS
1

Airbus Group N.V. — Consolidated
Financial Statements (IFRS)

2

Notes to the Consolidated Financial
Statements (IFRS)

3

Company Financial Statements

4

Notes to the Company Financial
Statements

5

Other Supplementary Information
including the Independent
Auditor’s report

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1

Airbus Group N.V. — Consolidated
Financial Statements (IFRS)
Airbus Group N.V. — IFRS Consolidated Income Statements
for the years ended 31 December 2014 and 201306

Airbus Group N.V. — IFRS Consolidated Statementsof Comprehensive Income for the years ended
31 December 2014 and 201307

Airbus Group N.V. — IFRS Consolidated Statementsof Financial Position at 31 December 2014, 2013
and adjusted opening 1 January 201308

Airbus Group N.V. — IFRS Consolidated Statements ofCash Flows for the years ended 31 December 2014 and 201310

Airbus Group N.V. — IFRS Consolidated Statementsof Changes in Equity for the years ended
31 December 2014 and 201311

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Airbus Group N.V. — Consolidated Financial Statements (IFRS)

Airbus Group N.V. — IFRS Consolidated Income Statements
for the years ended 31 December 2014 and 20132014

2013(1)(In € million)

Note

Revenues

5, 6

60,71357,567

Cost of sales

7(51,776)(49,613)Gross margin

8,937

7,954

Selling expenses(1,063)(1,140)(1,538)(1,622)(3,391)(3,118)Administrative expenses
Research and development expenses

8

Other income

9

330

272

Other expenses

10

(179)

(259)

Share of profit from investments accounted for under the equity method

16

840

434

Other income from investments

17

55

49

Profit before finance costs and income taxes

5

3,991

2,570

Interest income

142

161

Interest expense

(462)

(493)

(458)

(278)

(778)

(610)

Other financial result
Total finance costs

11

Income taxes

12

Profit for the period

(863)

(477)

2,350

1,483

2,343

1,473

7

10

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

Earnings per share

€

€

Basic

37

2.99

1.86

Diluted

37

2.99

1.85

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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

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AIRBUS GROUP FINANCIAL STATEMENTS 2014

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Airbus Group N.V. — Consolidated Financial Statements (IFRS)

Airbus Group N.V. — IFRS Consolidated Statements of Comprehensive Income
for the years ended 31 December 2014 and 2013(In € million)

2014

2013(1)

Profit for the period

2,350

1,483

(2,034)(67)

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

(131)

(1)

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

577

20

Foreign currency translation differences for foreign operations

244

(138)

Effective portion of changes in fair value of cash flow hedges(6,748)

1,841

358

425

Items that will be reclassified to profit or loss:

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

90

12

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

(19)

(30)

Changes in other comprehensive income from investments accounted for using the equity method
Related tax on income and expense recognised directly in equity

(22)

(12)

1,961

(702)

Other comprehensive income, net of tax(5,724)

1,348

Total comprehensive income of the period(3,374)

2,831(3,362)

2,829

(12)

2

Attributable to:Equity owners of the parent
Non-controlling interests(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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

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Airbus Group N.V. — Consolidated Financial Statements (IFRS)

Airbus Group N.V. — IFRS Consolidated Statements of Financial Position
at 31 December 2014, 2013 and adjusted opening 1 January 2013

Note

2014

2013(1)

Adjusted
opening 2013(1)13

12,75812,50012,271

Property, plant and equipment

14

16,321

15,585

14,902

Investment property

15

67

69

72

Investments accounted for under the equity method

16

3,391

3,858

3,584

Other investments and other long-term financial assets

17

1,769

1,756

1,965

Non-current other financial assets

20

586

2,076

1,386

Non-current other assets

21

1,822

1,651

1,413

Deferred tax assets

12

5,717

3,733

4,425

Non-current securities

22(In € million)

AssetsNon-current assets
Intangible assets

5,989

4,298

5,987

48,42045,52646,005Current assets
Inventories

18

25,35524,023

22,201

Trade receivables

19

6,798

6,628

6,183

Current portion of other long-term financial assets

17

167

132

271

Current other financial assets

20

1,164

1,591

1,444

Current other assets

21

2,389

1,960

1,934

605

628

450

Current securities

22

3,183

2,585

2,331

Cash and cash equivalents

31

7,271

7,201

8,171

46,932

44,74842,985

Assets of disposal groups classified as held for sale

4

750

0

0

96,102

90,274

88,990Current tax assets

Total assets(1) Previous years’ figures are adjusted due to the application of IFRS 10 and IFRS 11.

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Airbus Group N.V. — Consolidated Financial Statements (IFRS)

2014

2013(1)

Adjusted
opening 2013(1)Capital stock

785

783

827
7,253

Note

(In € million)

Equity and liabilities
Equity attributable to equity owners of the parent

Share premium

4,500

5,049

Retained earnings

2,989

2,167

753

Accumulated other comprehensive income(1,205)

2,915

1,511

(8)

(50)

(84)

7,061

10,864

10,260Treasury shares

Non-controlling interests

18

42

16

23

7,079

10,906

10,276

Non-current provisions

25

10,400

9,604

9,411

Long-term financing liabilities

26

6,278

3,804

3,312

Non-current other financial liabilities

27

9,922

7,154

7,454

Total equity
Non-current liabilities

Non-current other liabilities28

12,84910,764

10,496

Deferred tax liabilities

12

1,130

1,454

1,459

Non-current deferred income

30

267

237

211

40,84633,01732,343

5,712

5,222

5,940

Current liabilities
Current provisions

25

Short-term financing liabilities

26

1,073

1,826

1,463

Trade liabilities

29

10,183

9,668

9,271

Current other financial liabilities

27

3,480

1,465

1,712

Current other liabilities

28

25,222

26,57026,485

738

616

441

Current tax liabilities

1,089

984

1,059

47,49746,351

46,371680

00Total liabilities

89,02379,36878,714

Total equity and liabilities

96,102

90,274

88,990Current deferred income

30

Liabilities of disposal groups classified as held for sale

4(1) Previous years’ figures are adjusted due to the application of IFRS 10 and IFRS 11.

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

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Airbus Group N.V. — Consolidated Financial Statements (IFRS)

Airbus Group N.V. — IFRS Consolidated Statements of Cash Flowsfor the years ended 31 December 2014 and 2013

Note

(In € million)

Profit for the period attributable to equity owners of the parent (Net income)
Profit for the period attributable to non-controlling interests
Adjustments to reconcile profit for the period to cash provided by operating activities:
Interest income
Interest expense
Interest received
Interest paid
Income tax expense
Income taxes paid
Depreciation and amortisation
Valuation adjustments
Results on disposals of non-current assets
Results of investments accounted for by the equity method
Change in current and non-current provisions
Reimbursement from / contribution to plan assets
Change in other operating assets and liabilities:
Inventories
Trade receivables
Trade liabilities
Advance payments received
Other assets and liabilities
Customer financing assets
Customer financing liabilities
Cash provided by operating activities
Investments:
Purchases of intangible assets, property, plant and equipment, investment property
Proceeds from disposals of intangible assets, property, plant and equipment,
investment property
Acquisitions of subsidiaries, joint ventures, businesses and non-controlling interests(net of cash)
Proceeds from disposals of subsidiaries (net of cash)
Payments for investments in associates, joint ventures, other investments and otherlong-term financial assets
Proceeds from disposals of associates, joint ventures, other investments and otherlong-term financial assets
Dividends paid by companies valued at equity
Payments for investments in securities
Proceeds from disposals of securities
Cash (used for) investing activities
Increase in financing liabilities
Repayment of financing liabilities
Cash distribution to Airbus Group N.V. shareholders
Dividends paid to non-controlling interests
Changes in capital and non-controlling interests
Change in treasury shares
Cash provided by (used for) financing activities
Effect of foreign exchange rate changes and other valuation adjustments on cash
and cash equivalents
■

■

■

■

■

■

■

■

2014

2013(1)

2,343
7

1,473
10

(142)
462
99
(303)
863
(115)
2,150
562
(93)
(840)
415
(462)
(2,386)(3,252)
(700)
130
1,715
(387)
124
(16)
2,560

(161)
493
99
(304)
477
(243)
1,927
48
(58)
(434)
816
(223)
(2,091)(3,102)
(83)
522
580
311
(327)
8
1,829

(2,548)(2,918)

232

48

(47)
(34)

(16)
0

(36)

(293)

1,083
143
(5,526)
3,510(3,223)
2,038(1,108)
(587)
(2)
52
102
495

154
146
(1,398)2,665(1,612)
1,667
(534)
(467)
(2)
171
(1,915)(1,080)

■

■

■

31
31

■

■

■

256

(107)

88

(970)

Cash and cash equivalents at beginning of period

7,201

8,171

Cash and cash equivalents at end of period

7,289

7,201

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

7,271
18

7,201
0

Net increase (decrease) in cash and cash equivalents(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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

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1

Airbus Group N.V. — Consolidated Financial Statements (IFRS)

Airbus Group N.V. — IFRS Consolidated Statements of Changes in Equity
for the years ended 31 December 2014 and 2013

Noncontrolling
Totalinterests equity

Equity attributable to equity holders of the parent
Accumulated othercomprehensive income
Foreign
AvailablecurrencyCashfor-saletranslation Treasury
flow
CapitalShare Retained financial
assets hedges adjustments shares
Note stock premium earnings(In € million)

Balance at 31 December 2012,as reported
Adjustments(1)Balance at 1 January 2013,adjusted(1)Profit for the period(1)

Other comprehensive income(1)Total comprehensive incomeof the period(1)Capital increase

23

Total

827

7,253

894

563

(417)

1,367

0

0

(141)

31

(7)

(26)

(84) 10,403

17

10,420

(143)

(1)

(144)

827

7,253

753

594

(424)

1,341

(84) 10,260

16

10,276

0

0

1,473

0

0

0

0

1,473

10

1,483

0

0

(48)

31

1,525

(152)

0

1,356

(8)

1,348

0

0

1,425

31

1,525

(152)

0

2,829

2

2,831

9

233

0

0

0

0

0

242

2

244

0

Capital decrease

23

0

(74)

0

0

0

0

0

(74)

0

(74)

Share-based Payment (IFRS 2)

35

0

0

107

0

0

0

0

107

0

107

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

0

(467)

0

0

0

0

0

(467)

(2)

(469)

Equity transaction (IAS 27)

0

0

(118)

0

0

0

0

(118)

24

(94)

Change in non-controllinginterests

0

0

0

0

0

0

0

0

0

0

Change in treasury shares

23

0

0

0

0

0

0

0

0

0

0

Cancellation of treasury shares

23

(53)

(1,896)

0

0

0

0

34 (1,915)

0(1,915)

783

5,049

2,167

625

1,101

1,189

(50) 10,864

42

10,906

Balance at 31 December 2013,adjusted(1)Profit for the period

0

0

2,343

0

0

0

2,343

7

2,350

Other comprehensive income

00(1,585)45(4,411)246

0 (5,705)0(19)(5,724)

Total comprehensive incomeof the period

0

0

758

45

(4,411)246

0 (3,362)(12)(3,374)

Capital increase

23

2

50

0

0

0

0

0

52

0

52

Capital decrease

23

0

(12)

0

0

0

0

0

(12)

0

(12)

Share-based Payment (IFRS 2)

35

0

0

(5)

0

0

0

0

(5)

0

(5)

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

0

(587)

0

0

0

0

0

(587)

(2)

(589)

Equity transaction (IAS 27)

0

0

(3)

0

0

0

0

(3)

7

4

Change in non-controllinginterests

0

0

0

0

0

0

0

0

(17)

(17)

Change in treasury shares

23

0

0

72

0

0

0

0

72

0

72

Cancellation of treasury shares

23

0

0

0

0

0

0

42

42

0

42

785

4,500

2,989

670 (3,310)

1,435

(8)

7,061

18

7,079

Balance at 31 December 2014

(1) Previous years’ figures are adjusted due to the application of IFRS 10 and IFRS 11.

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

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2

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

15

2.2 Notes to the Consolidated Income Statements

37

2.3 Notes to the Consolidated Statementsof Financial Position46

2.4 Notes to the Consolidated Statements of Cash Flows73

2.5 Other Notes to the Consolidated Financial Statements

75

2.6 Appendix “Information on Principal Investments”– Consolidation Scope103

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

15

23.

Total Equity

60

1.

The Company

15

24.

Capital Management

612.

Summary of Signiﬁcant Accounting Policies

15

25.

Provisions

62

3.

Scope of Consolidation

34

26.

Financing Liabilities

69

4.

Acquisitions and Disposals

35

27.

Other Financial Liabilities

71

28.

Other Liabilities

72

29.

Trade Liabilities

72

30.

Deferred Income

72

2.2 Notes to the Consolidated
Income Statements

37

5.

Segment Reporting

37

6.

Revenues and Gross Margin40

7.

Functional Costs

41

2.4 Notes to the Consolidated
Statements of Cash Flows73

8.

Research and Development Expenses

41

31.

Consolidated Statements of Cash Flows73

9.

Other Income

41

10.

Other Expenses

42

11.

Total Finance Costs

42

2.5 Other Notes to the Consolidated
Financial Statements

75

12.

Income Taxes

42

32.

Litigation and Claims

75

33.

Commitments and Contingencies

76

34.

Information about Financial Instruments

79

2.3 Notes to the Consolidated
Statements of Financial Position

46

35.

Share-Based Payment

94

13.

Intangible Assets

46

36.

Related Party Transactions

98

14.

Property, Plant and Equipment

50

37.

Earnings per Share

100

15.

Investment Property

52

38.

Number of Employees

101

16.

Investments Accounted for Under
the Equity Method

39.

Auditor Fees

101

53

40.

Events after the Reporting Date

102

Other Investments and Other Long-Term
Financial Assets

56

18.

Inventories

57

19.

Trade Receivables

58

20.

Other Financial Assets

59

21.

Other Assets

59

22.

Securities

60

17.

14

2.6 Appendix “Information
on Principal Investments”– Consolidation Scope

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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 IFRS Consolidated Financial Statements present
the ﬁnancial position and the result of the operations of Airbus
Group N.V. (formerly European Aeronautic Defence and Space
Company EADS N.V.) and its subsidiaries (the “Group”), a Dutch
public limited liability company (Naamloze Vennootschap) legallyseated in Amsterdam (current registered ofﬁce at Mendelweg 30,2333 CS Leiden, The Netherlands). On 1 January 2014, the Grouphas been rebranded from EADS to Airbus Group as part of a wider
reorganisation including integration of the Group’s defence andspace activities. The Group’s core business is the manufacturing

2.

of commercial aircraft, civil and military helicopters, commercial
space launch vehicles, missiles, military aircraft, satellites, defence
systems, defence electronics and the rendering of services related
to these activities. Airbus Group has its listings at the European
Stock Exchanges in Paris, Frankfurt am Main, Madrid, Barcelona,
Valencia and Bilbao. The IFRS Consolidated Financial Statements
were authorised for issue by the Group’s Board of Directors on
26 February 2015. They are prepared and reported in euro (“€”),and all values are rounded to the nearest million appropriately.

2

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 for which othermeasurement models are used in accordance with the applicableStandards’ requirements. The measurement models used when
the historical cost model does not apply (mainly in the area offair value measurement of derivative ﬁnancial instruments andemployee beneﬁts) are further described below.
In accordance with Article 402 Book 2 of the Netherlands Civil
Code the Statement of Income of the Airbus Group 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 judgment in the processof applying the Group’s accounting policies. The areas involving
a higher degree of judgment or complexity, or areas whereassumptions and estimates are signiﬁcant to the Consolidated
Financial Statements are disclosed in the last subsection“Management judgment and use of Accounting Estimates” ofthis Note 2.
The Group changed the presentation of its Consolidated Financial
Statements to one comparison period in line with prevailing practiceof other European public companies.

New, revised or amended IFRS Standards
The IFRS accounting principles applied by the Group for preparing
its 2014 year-end Consolidated Financial Statements are the same
as for the previous ﬁnancial year except for the application of new
or amended Standards as detailed below.
The application of the following amendments to IFRS is mandatory
for the Group for the ﬁscal year starting 1 January 2014. Theirapplication did not have a material impact on the Group’s
Consolidated Financial Statements as well as its basic and diluted
earnings per share.
Amendments to IAS 32 “Financial Instruments: Presentation”
clarifying the IASB’s requirements for offsetting financial
instruments.
Amendments to IAS 39 “Financial Instruments: Recognition
and Measurement” provide an exception to the requirement forthe discontinuation of hedge accounting in IAS 39 and IFRS 9
in circumstances when a hedging instrument is required to be
novated to a central counterparty as a result of laws or regulations.
In 2011, the IASB issued 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” andto IAS 28 “Investments in Associates and Joint Ventures”. In2012, the IASB issued the Transition Guidance (Amendments for
IFRS 10, IFRS 11 and IFRS 12). The main purpose of the new set ofstandards is the introduction of (i) one consistent principle of control
applicable for the consolidation assessment of all kinds of entities,(ii) the distinction between two types of joint arrangement, joint
ventures and joint operations based on the rights and obligations

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

arising from the underlying arrangement, (iii) termination of the
proportionate method for recognition of joint ventures and (iv)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 offbalance sheet vehicles in one single standard (see “Consolidation”).
The ﬁrst time application of IFRS 10 and IFRS 11 had an impact on
Airbus Group’s Consolidated Financial Statements: the applicationof the new control concept as deﬁned by IFRS 10 resulted in the
exclusion of ﬁve structured entities which were previously fully

16

consolidated from the consolidation scope (see Note 3 “Scope of
consolidation”). Additionally, twelve entities which were previouslyclassiﬁed as joint ventures under IAS 31 and consolidated using the
proportional consolidation method in accordance with the Airbus
Group accounting policy choice under IAS 31 are now accounted
for using the equity method (see signiﬁ cant policy relative to
joint arrangements). Accordingly, application of IFRS 11 had amaterial impact on the Group’s ﬁnancial statements. The ﬁrst time
application of IFRS 11 did not result in any reassessment regarding
the classiﬁcation of Airbus Group entities as joint ventures.

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

The following tables summarise the impacts on the comparative information on the Group’s ﬁnancial position, income statement andstatement of cash ﬂows resulting from the change in consolidation scope:
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013

As previously reported

IFRS 10 and 11

As restatedIntangible assets

13,653(1,153)

12,500Property, plant and equipment

15,856(271)

15,58569

069

Investments accounted for under the equity method

2,902

956

3,858

Other investments and other long-term financial assets

1,864

(108)

1,756

Non-current other financial assets

2,076

0

2,076

(In € million)

AssetsNon-current assets

Investment property

Non-current other assets

1,653

(2)

1,651

Deferred tax assets

3,840

(107)

3,733

Non-current securities

4,300

(2)

4,298

46,213(687)

45,526Inventories

25,060(1,037)24,023

Trade receivables

7,239

(611)

6,628

181

(49)

132

Current other financial assets

1,557

34

1,591

Current other assets

2,074

(114)

1,960

Current tax assets

632

(4)

628

Current securities

2,590

(5)

2,585

2

Current assets

Current portion of other long-term financial assets

Cash and cash equivalents

Total assets

7,765

(564)

7,201

47,098(2,350)44,74893,311(3,037)

90,274Equity and liabilities
Equity attributable to equity owners of the parent
Capital stock

783

0

783

Share premium

5,049

0

5,049

Retained earnings

2,300

(133)

2,167

Accumulated other comprehensive income

2,929

(14)

2,915

Treasury shares

(50)

0

(50)

11,011(147)

10,864

43

(1)

42

11,054(148)

10,906

Non-current provisions

10,046

(442)

9,604

Long-term financing liabilities

3,956

(152)

3,804

Non-controlling interests

Total equity
Non-current liabilities

Non-current other financial liabilities

7,158

(4)

7,154

Non-current other liabilities

10,790(26)

10,764

Deferred tax liabilities

1,487

(33)

1,454

239

(2)

237

33,676(659)

33,017

Current provisions

5,323

(101)

5,222

Short-term financing liabilities

1,645

181

1,826

Trade liabilities

10,372

(704)

9,668

Non-current deferred income
Current liabilities

Current other financial liabilities

1,467

(2)

1,465

Current other liabilities

28,159(1,589)26,570Current tax liabilities

616

0

616

Current deferred income

999

(15)

984

48,581(2,230)46,351

Total liabilities

82,257(2,889)79,368

Total equity and liabilities

93,311(3,037)

90,274

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 1 JANUARY 2013

As previously reported

IFRS 10 and 11

Intangible assets

13,429(1,158)12,271

Property, plant and equipment

15,196(294)

14,902(In € million)

As restated

AssetsNon-current assets

Investment property

72

0

72

2,662

922

3,584

Other investments and other long-term financial assets

2,115

(150)

1,965

Non-current other financial assets

1,386

0

1,386

Non-current other assets

1,415

(2)

1,413

Deferred tax assets

4,532

(107)

4,425

Investments accounted for under the equity method

Non-current securities

5,987

0

5,987

46,794(789)

46,005Inventories

23,216(1,015)22,201

Trade receivables

6,788

(605)

6,183

287

(16)

271

Current other financial assets

1,448

(4)

1,444

Current other assets

2,046

(112)

1,934

Current tax assets

458

(8)

450

Current securities

2,328

3

2,331

Current assets

Current portion of other long-term financial assets

Cash and cash equivalents

Total assets

8,756

(585)

8,171

45,327(2,342)

42,985

92,121(3,131)

88,990Equity and liabilities
Equity attributable to equity owners of the parent
Capital stock

827

0

827

Share premium

7,253

0

7,253

Retained earnings

894

(141)

753

Accumulated other comprehensive income

1,513

(2)

1,511

Treasury shares
Non-controlling interests

(84)

0

(84)

10,403(143)

10,260

17

(1)

16

10,420(144)

10,276

Non-current provisions

9,850

(439)

9,411

Long-term financing liabilities

3,506

(194)

3,312

Total equity
Non-current liabilities

Non-current other financial liabilities

7,458

(4)

7,454

Non-current other liabilities

10,524(28)

10,496

Deferred tax liabilities

1,502

(43)

1,459

212

(1)

211

33,052(709)

32,343

Non-current deferred income
Current liabilities
Current provisions

6,039

(99)

5,940

Short-term financing liabilities

1,273

190

1,463

Trade liabilities

9,921

(650)

9,271

Current other financial liabilities

1,715

(3)

1,712

Current other liabilities

28,183(1,698)26,485

458

(17)

441

1,060

(1)

1,059

Current tax liabilities
Current deferred income

18

48,649(2,278)46,371

Total liabilities

81,701(2,987)78,714

Total equity and liabilities

92,121(3,131)

88,990AIRBUS GROUP FINANCIAL STATEMENTS 2014

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

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2013(In € million)

As previously reported

IFRS 10 and 11

As restatedRevenues

59,256(1,689)57,567

Cost of sales(50,895)

1,282(49,613)Gross margin

8,361

(407)

7,954

Selling expenses(1,217)77(1,140)Administrative expenses(1,696)74(1,622)

Research and development expenses(3,160)42(3,118)Other income

236

36

272

Other expenses

(263)

4

(259)

Share of profit from investments accounted
for under the equity method

295

139

434

Other income from investments

51

(2)

49

Profit before finance costs and income taxes

2,607

(37)

2,570

Interest income

168

(7)

161

Interest expense

(497)

4

(493)

Other financial result

(301)

23

(278)

Total finance costs

(630)

20

(610)

Income taxes

(502)

25

(477)

Profit for the period

1,475

8

1,483

1,465

8

1,473

10

0

10

2

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

EPS 2013 reported: basic 1.85, diluted 1.84 / EPS 2013 restated due to the application of IFRS 10 and 11: basic 1.86, diluted 1.85.

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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

CONSOLIDATED STATEMENTS OF CASH FLOWS AS OF 31 DECEMBER 2013

As previously reported

IFRS 10 and 11

As restated

1,465

8

1,473

10

0

10

Interest income

(168)

7

(161)

Interest expense

497

(4)

493

Interest received

119

(20)

99

Interest paid

(323)

19

(304)

Income tax expense

502

(25)

477

Income taxes paid

(243)

0

(243)

Depreciation and amortisation

1,968

(41)

1,927

Valuation adjustments

16

32

48

Results on disposals of non-current assets

(58)

0

(58)

Results of investments accounted for by the equity method

(295)

(139)

(434)

Change in current and non-current provisions

605

211

816

Reimbursement from / contribution to plan assets

0

0

(223)

Change in other operating assets and liabilities:(2,164)73(2,091)(3,151)49(3,102)(In € million)

Profit for the period attributable to equity owners of the parent (Net income)
Profit for the period attributable to non-controlling interests
Adjustments to reconcile profit for the period to cash provided by operating activities:■

Inventories■

Trade receivables

(58)

(25)

(83)

■

Trade liabilities

584

(62)

522

■

Advance payments received

513

67

580

■

Other assets and liabilities

267

44

311

■

Customer financing assets

(214)

(113)

(327)

■

Customer financing liabilities

(105)

113

8

1,931

121

1,829

(2,949)31(2,918)Proceeds from disposals of intangible assets, property, plant and equipment,
investment property

60

(12)

48

Acquisitions of subsidiaries, joint ventures, businesses
and non-controlling interests (net of cash)

(16)

0

(16)

Proceeds from disposals of subsidiaries (net of cash)

0

0

0

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

(292)

(1)

(293)

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

157

(3)

154

Dividends paid by companies valued at equity

52

94

146

Cash provided by operating activities
Investments:
■

■

■

■

■

■

■

Purchases of intangible assets, property, plant and equipment, investment property

Payments for investments in securities(1,401)3(1,398)Proceeds from disposals of securities

2,673

(8)

2,665

(26)

26

0

Cash (used for) investing activities(1,742)130(1,612)

Increase in financing liabilities

1,679

(12)

1,667

Repayment of financing liabilities

(534)

0

(534)

Cash distribution to Airbus Group N.V. shareholders(467)

Change in cash from changes in consolidation

20

(467)

0

Dividends paid to non-controlling interests

(2)

0

(2)

Changes in capital and non-controlling interests

171

0

171

Change in treasury shares(1,915)0(1,915)

Cash (used for) financing activities(1,068)(12)(1,080)Effect of foreign exchange rate changes and other valuation adjustments on cash
and cash equivalents

(112)

5

(107)

Net (decrease) in cash and cash equivalents

(991)

244

(970)

Cash and cash equivalents at beginning of period

8,756

(585)

8,171

Cash and cash equivalents at end of period

7,765

(341)

7,201

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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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 and improvements to standards as well as interpretations are not yet effective
for the year ended 31 December 2014 and have not been applied in preparing these Consolidated Financial Statements and early
adoption is not planned:Standards and amendments

IASB effective date
for annual reporting periods
beginning on or afterEndorsement status

1 January 2018

Not yet endorsed

IFRS 9 Financial instruments
IFRS 15 Revenue from contracts with customers

1 January 2017

Not yet endorsed

Amendment to IAS 1 Disclosure initiative

1 January 2016

Not yet endorsed

Amendments to IFRS 10 & IAS 28 Sale or contribution of assets between an
investor and its associate or Joint Venture

1 January 2016

Not yet endorsed

Amendments to IFRS 11 Accounting for acquisition of interests in joint operations

1 January 2016

Not yet endorsed

Amendments to IAS 16 & IAS 38 Clarification of acceptable methods ofdepreciation and amortisation

1 January 2016

Not yet endorsed

1 July 201417 December 2014

1 July 201417 December 2014

1 January 201618 December 2014

1 January 201413 June 2014

Amendments to IAS 19 Defined Benefit Plans: Employee Contribution

2

Annual improvements to IFRSs:■

2010-2012 Cycle, IFRSs 2011-2013 Cycle■

2012-2014 Cycle

IFRIC 21 Levies

The potential impacts from the application of those newly issued
standards and amendments are currently under investigation. If
not otherwise stated, these new, revised or amended IFRS are notexpected to have a material impact on the Group’s Consolidated
Financial Statements as well as its basic and diluted earnings
per share.

IFRS 9 – “Financial instruments”
IFRS 9, published in July 2014, replaces the existing guidance in
IAS 39 “Financial Instruments: Recognition and Measurement”.
IFRS 9 includes revised guidance on the classification andmeasurement of ﬁnancial instruments, including a new expectedcredit loss model for calculating impairment on ﬁnancial assets,
and the new general hedge accounting requirements. It also carries
forward the guidance on recognition and derecognition of ﬁnancial
instruments from IAS 39.
Assessment of materiality of IFRS 9 impact on the Group’s Financial
Statements is currently being performed.

IFRS 15 – “Revenue from contracts with customers”
In May 2014, the IASB issued IFRS 15 which establishes a single
comprehensive framework for determining when to recogniserevenue and how much revenue to recognise. IFRS 15 will replace
the current revenue recognition standards IAS 18 Revenue and
IAS 11 Construction contracts and related interpretations when
it becomes effective.
The implementation of the Standard is expected to considerably
impact the Group’s Financial Statements and is currently underassessment.

Amendments to IAS 1 – Disclosure initiative
These amendments to IAS 1 Presentation of Financial Statements
address some of the concerns expressed about existingpresentation and disclosure requirements and ensure that entities
are able to use judgment when applying IAS 1.

Amendments to IFRS 10 & IAS 28 –“Sale or contribution of assets between an investor
and its associate or Joint Venture”
The amendments address an acknowledged inconsistency
between the respective requirements in IFRS 10 and in IAS 28,
when determining impacts from the sale or contribution of assets
between an investor and its associate or joint venture in exchange
for shares in the associate or Joint Venture.

Amendments to IFRS 11 – “Accounting for acquisitionof interests in joint operations”
These amendments provide guidance on the accounting for theacquisition of a joint operation that constitutes a business as
deﬁned under IFRS 3 “Business combinations” and the creationof a joint operation from an existing business which is contributed
to the joint operation by one of the parties which participatesin the joint operation. The amendments state that the principles
on accounting for business combinations in IFRS 3 and otherstandards should be applied.

Amendments to IAS 16 & IAS 38 –“Clarification of acceptable methods of depreciation
and amortisation”
The amendments of IAS 16 prohibit entities from using a revenuebased depreciation method for items of property, plant andequipment. The amendments of IAS 38 introduce a presumptionthat revenue is not an appropriate basis for amortisation except
in limited circumstances.

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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

Amendment to IAS 19 – “Defined Benefit Plans:
Employee Contribution”
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.

IFRIC 21 – “Levies”
This interpretation sets out the accounting for an obligation to pay
a levy that is not income tax. The interpretation addresses what is
the obligating event that gives rise to pay a levy and when shoulda liability be recognised.

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 Group’s Consolidated Financial Statements
include the ﬁnancial statements of all material entities controlled
by the Group. An entity is controlled by the Group regardless thelevel of the Group’s equity interest in the entity, when the Grouphas power over the entity, when it is exposed, or has rights tovariable returns from its involvement with the entity and has theability to use its power to affect those returns.
In determining whether control exists, the Group considers all
relevant facts and circumstances to assess its control over anentity such as contractual commitments and potential voting rights
held by the Group if they are substantive.
“Subsidiaries” are all kind of entities controlled by the Group
including so-called Structured Entities (“SE”) which are createdto accomplish a narrow and well-deﬁned objective and for which
control is usually not purely assessed by majority of voting rights
but based on assessment of contractual arrangements.
Subsidiaries are fully consolidated from the date control has beentransferred to the Group and de-consolidated from the date control
ceases. The Group’s subsidiaries prepare their ﬁnancial statements
at the same reporting date as the Group’s Consolidated Financial
Statements and apply the same accounting policies for similartransactions.
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 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 measurement
procedures used.
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.
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.
Impacts of the replacement of share-based payments awards
are included in the measurement of the consideration transferredin a business combination in accordance with the measurement
method of IFRS 2 Share-based Payment at the acquisition date.
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 that are expected to beneﬁt from the synergies
arising from the business combination.
Interests in equity-accounted investees — Airbus Group’s
interest in equity-accounted investees comprise interests inassociates and joint ventures.
Associates are those entities in which Airbus Group exercises
its signiﬁcant inﬂuence over an entity when it has the power toparticipate in the ﬁnancial and operating policy decisions of theentity but it does not have the power to control or jointly control
the entity. Signiﬁcant inﬂuence in an entity is presumed to exist
when the Group owns 20% or more of the entity’s voting rights.
A joint venture is a joint arrangement whereby the parties that havejoint control of the arrangement (i.e. joint venturers) have rights tothe net assets of the arrangement, rather than rights to its assets
and obligations for its liabilities.

■

22

Investments in associate and a joint venture are accounted forusing the equity method and are initially recognised at cost. The
investments in associates include goodwill as recognised at theacquisition date net of any accumulated impairment loss. The entire
carrying amount of the investments is tested for impairment whenrequired (see “Impairment of financial assets”).

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

The investments’ carrying amount is adjusted by the cumulative
movements in recognised income, expense and othercomprehensive income. When the Group’s share in losses equals
or exceeds its interest in an associate or joint venture, including
any other unsecured receivables, no further losses are recognised,
unless the Group has incurred obligations or made payments onbehalf of the associate or joint venture respectively.
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.
Joint operations — A joint operation is a joint arrangement
where the parties that have joint control (i.e. joint operators) havedirect rights to the assets and obligations for the liabilities of
the arrangement. The joint operator will have direct access andexposure to the income and expenses generated by the use of
the assets and liabilities it makes available throughout the entire
terms of the arrangement. IFRS 11 requires a joint operator torecognise and measure the assets and liabilities (and recognise
the related revenues and expenses) in relation to its interest in
the arrangement applicable to the particular assets, liabilities,
revenues and expenses.
Foreign currency translation — The Consolidated Financial
Statements are presented in euro. A legal entity’s functional
currency is the currency of the primary economic environment
in which the entity operates. The assets and liabilities of foreign
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.
Transactions in currencies other than the functional currency aretranslated into the functional currency at the foreign exchange
rate prevailing at transaction date. Monetary assets and liabilities
denominated in foreign currencies at the end of the reporting
period are translated into the functional currency 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 intofunctional currency at the foreign exchange rate in effect at thedate of the transaction. Translation differences on non-monetaryﬁnancial assets and liabilities that are measured at fair value arereported as part of the fair value gain or loss. However, translationdifferences of non-monetary ﬁnancial assets measured at fair value
and classiﬁed as available 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 theGroup disposes of only part of its interest in a subsidiary that
includes a foreign operation while retaining control, the relevant
proportion of the cumulative translation reserve is allocated to
non-controlling interests. When the Group disposes of only partof its investment in an associate or in a joint arrangement 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.

2

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 Percentage of Completion (“PoC”), that are sold, consumed
or settled as part of the normal operating cycle are classiﬁed as
current even when they are not expected 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 Airbus Group, that revenue canbe measured 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 and acceptance 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.
Interest income from ﬁnancing activities undertaken by the Group’s
ﬁ nancial service providers are recognised using the effective
interest rate method and are reported as revenues.
When the Group entities provide more than one element of revenue
in a contract (goods and/or services), the consideration received
is allocated by reference to the relative fair values of the separate
elements of revenue when the amounts are separately identiﬁable.

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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

For construction contracts, when the outcome can be estimatedreliably, revenues and contract costs are recognised as revenue
and expenses respectively by reference to the stage of completionof the contract activity at the end of the reporting period.

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 (see “Available for sale ﬁnancial assets”).

Contract revenues includes the purchase price agreed with thecustomer considering escalation formulas, contract amendments
and claims and penalties when assessed probable.

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).

Depending on the nature of the contract, the percentage
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. The effects
of a change in the estimate of contract revenue or contract cost,or the effect of a change in the estimate of the outcome of acontract are recognised in proﬁt or loss in the period in which
the changes are made and in subsequent periods. Contracts
are reviewed regularly and in case of probable losses, loss-atcompletion provisions are recorded. For construction contracts
such loss-at-completion provisions are not discounted.
Construction contract accounting is applied for military
programmes, space projects as well as for launch customer
contracts in the civil aircraft business if customers have signiﬁcantly
inﬂuenced the structural design and technology of the aircraft
type under the contract. Considering certain airline customer’s
increasing involvement in the development and production
process of the A350 XWB programme, Airbus applies IAS 11 toa ﬁxed number of launch customer contracts of the A350 XWB
programme for existing backlog. This change in accounting policy
has no material effect on Airbus Group Financial Statements andis thus applied prospectively.
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 — Interest income derived from the Group’s
asset management and lending activities is recognised as interest
accrues, using the effective interest rate method.

24

The Group is a lessor and a lessee of assets, primarily inconnection with commercial aircraft sales financing. Leasetransactions where substantially all risks and rewards incident
to ownership are transferred from the lessor to the lessee areaccounted for as ﬁnance leases. All other leases are accounted
for as operating leases.
Assets leased out under operating leases are included in property,
plant and equipment at cost less accumulated depreciation(see Note 14 “Property, plant and equipment”). Rental income
from operating leases (e.g. aircraft) is recorded as revenue on astraight-line basis over the term of the lease. Assets leased out
under ﬁnance leases cease to be recognised in the Consolidated
Statement of Financial Position after the inception of the lease.
Instead, a ﬁnance lease receivable representing the discounted
future lease payments to be received from the lessee plus any
discounted unguaranteed residual value is recorded as part ofother long-term ﬁnancial assets (see Note 17 “Other investments
and other long-term ﬁnancial assets”). Unearned ﬁnance income isrecorded over time in “Interest income”. Revenues and the related
cost of sales are recognised 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 14 “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 ﬁ nance 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 astraight 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
are recorded 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.

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentation(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
be recognised if technical as well as commercial feasibility
can be demonstrated and cost can be measured reliably. It
must also be probable that the intangible asset will generate
future economic benefits and that it is clearly identifiable andallocable to a specific product.

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.

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,the respective project related costs are treated as if they wereincurred in the research phase only.

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 recognisedin the Consolidated Income Statement when the asset isderecognised.

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 lifeof the internally generated intangible asset. Amortisation ofcapitalised development costs is recognised in cost of sales.
Internally generated intangible assets are reviewed for impairment
annually when the asset is not yet in use and further on whenever
events or 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.
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(3 to 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.

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Proper ty, plant and equipment — Property, plant andequipment is valued at acquisition or manufacturing costs lessaccumulated depreciation and impairment losses. Such costs
include the estimated cost of replacing, servicing and restoring
part of such property, plant and equipment. Items of property,
plant and equipment are generally depreciated on a straightline basis. The costs of internally produced equipment andfacilities include direct material and labour costs and applicablemanufacturing 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; and other 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 atleast annually and 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 proﬁ t
or loss. At each end of the reporting period, it is assessed
whether there is any indication that an item of property, plantand equipment may be impaired (see also below “Impairment
of non-ﬁ nancial assets”).
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 for

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

aircraft production programmes such as the Airbus A380 with anestimated number of aircraft to be produced using such tools, thesum-of-the-units method effectively allocates the diminution ofvalue 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.
land or 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 theordinary 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 or the Cash Generating Unit (“CGU”) to which
the asset belongs 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 or the CGU’s carrying amount to which theasset belongs exceeds its recoverable amount. For the purpose of
impairment testing any goodwill is allocated to the CGU or Groupof CGU that reﬂects the way goodwill is monitored for internalmanagement purposes.
The recoverable amount of an asset or 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 are largely independent of
those from other assets or group of assets. In such a case therecoverable amount is determined for the CGU the asset belongs
to. Where the recoverable amount of a CGU to which goodwill
has been allocated is lower than the CGU’s carrying amount,ﬁrstly the related goodwill is impaired. Any exceeding amountof impairment is recognised on a pro rata basis of the carrying
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

26

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, the Group 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 thelast impairment loss was recognised. 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 contract,
including a derivative contract, that gives rise to a ﬁnancial assetof one entity and a ﬁnancial liability or equity instrument of anotherentity. The Group’s ﬁnancial assets mainly consist in cash, short
to medium-term deposits and securities. The Group’s ﬁnancial
liabilities include trade liabilities, obligations towards ﬁ nancial
institutions, issued bonds and refundable advances from European
governments. The Group recognises a ﬁnancial instrument on its
Consolidated Statement of Financial Position when it becomesparty to the contractual provision of the instrument. All purchases
and sales of ﬁnancial assets are recognised on settlement dateaccording to market conventions. The settlement date is the datean asset is delivered to or by an entity. Financial instruments are
initially recognised at fair value plus, in the case the ﬁ nancial
instruments are not measured at fair value through proﬁt or loss,
directly attributable transaction costs. Financial instruments at fairvalue through proﬁt or loss are initially recognised at fair value,transaction costs are recognised in the Consolidated Income
Statement. Finance lease receivables are recognised at an amountequal 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 group of ﬁnancial assets may

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

be impaired. The Group derecognises a ﬁ nancial asset when
the contractual rights to the asset’s cash ﬂ ows expire or the
ﬁnancial asset has been transferred and the transfer qualiﬁes forderecognition under IAS 39. The Group derecognises a ﬁnancial
liability when the obligation speciﬁed in the contract is discharged,
cancelled or expired. When an existing ﬁnancial liability is replacedby another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modiﬁed, suchan exchange or modiﬁcation is treated as a derecognition of theoriginal liability and the recognition of a new liability, and thedifference 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 of 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 34 “Information about ﬁnancial instruments” b).
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 are classiﬁed as available-for-sale ﬁnancial assets.
Available for sale ﬁnancial assets — Financial assets classiﬁed
as available-for-sale are accounted for at fair value. Changes
in the fair value subsequent to the recognition of available-forsale ﬁnancial assets – other than impairment losses and foreignexchange gains and losses on monetary items classiﬁ ed asavailable-for-sale – are recognised directly within AOCI, a separate
component of equity, net of applicable deferred income taxes.
As soon as such ﬁnancial assets are sold or otherwise disposedof, or are determined to be impaired, the cumulative gain or loss
previously recognised in equity is recorded as part of “otherincome (expense) from investments” in the Consolidated Income
Statement for the period. Interest earned on the investment
is presented as interest income in the Consolidated Income
Statement using the effective interest method. Dividends earned
on investment are recognised as “Other income (expense) frominvestments” in the Consolidated Income Statement when theright to the payment has been established.

2

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 initialrecognition 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 (such as investments in accumulated Money Market Funds)
at fair value through proﬁ t or loss at initial recognition if they
are part of a group of ﬁnancial assets that is managed and its
performance is evaluated on a fair value basis, in accordance witha 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 Group
provides money, goods or services directly to a debtor with nointention of trading the receivable. Loans and receivables areclassiﬁed as trade receivables, other investments and othercurrent / long-term financial assets. Other ﬁ nancial assets
include short-term and long-term loans advanced by Airbus
Group Bank to its customers or to other ﬁ nancial institutions.
After initial recognition loans and receivables are measured atamortised cost using the effective interest rate method less any
allowance for impairment. Gains and losses are recognised in
the Consolidated Income Statement at disposal of the loans andreceivables, through the amortisation process as well as in caseof 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, aresubsequently measured at amortised cost using the effective
interest method less any allowance for impairment. Gains andlosses are recognised in the Consolidated Income Statement
when the receivables are derecognised or impaired as well as
through the amortisation process.

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

Current / non-current other ﬁ nancial assets — Current /non-current other ﬁnancial assets mainly include derivatives withpositive fair values, receivables from related companies and loans,which are presented separately from current / non-current otherassets.
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 or a joint venture, the Group determines whether
it is necessary to recognise an impairment loss of the Group’s
investment in its associates. The Group determines at each endof the reporting period whether there is any objective evidence
that the investment in associate is impaired. Any reversal of theimpairment loss is recognised as an adjustment to the investment in
the associate or the joint venture to the extent that the recoverable
amount of the investment or the joint venture increases. As such,the goodwill related to the Group’s associates or joint venture is
not individually tested for impairment.
For financial assets carried at amortised cost, at cost and for
those classiﬁed as available-for-sale, a ﬁnancial asset or a groupof ﬁnancial assets is deemed to be impaired if, and only if, there
is objective evidence of impairment as a result of one or more
events that has occurred after the initial recognition of the asset(an incurred “loss event”) and that loss event has an impact on
the estimated future cash ﬂows of the ﬁnancial asset or the groupof ﬁnancial assets that can be reliably estimated.
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

28

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.
Non-current assets / disposal groups classiﬁed as held forsale — Non-current assets / disposal groups classiﬁed as assets
held for sale are 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.
If a component of the Group has either been disposed of or isclassiﬁed as held for sale and (i) represents a separate major lineof business or geographical area of operations, (ii) is part of asingle co-ordinated plan to dispose of a separate major line ofbusiness or geographical area of operations or (iii) is a subsidiaryacquired 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”).

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

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
symmetrically the offsetting effects on net profit or loss ofchanges in the fair values of the hedging instrument andthe related hedged item. The conditions for such a hedging
relationship to qualify for hedge accounting include: the hedgetransaction is expected to be highly effective in achieving
offsetting changes in fair value or cash flows attributable tothe hedged risk, the effectiveness of the hedge can be reliably
measured and there is formal designation and documentationof the hedging relationships and the Group’s risk management
objective and strategy for undertaking the hedge at the
inception of the hedge. The Group further documents
prospectively at the inception of the hedge as well as at eachclosing retrospectively and prospectively its assessment of
whether the derivatives used in hedging transactions are highly
effective in offsetting changes in fair values or cash flows ofhedged items with regard to the hedged 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, to certain interest rate swaps hedging thevariability of cash flows attributable to recognised assets andliabilities, as well as to equity swaps that hedge the equity
price risk inherent in cash-settled share based payments(LTIP). 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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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 partof 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 34e).
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 clearlyand closely related to those of the host contract. Changes in
the fair value of the derivative component of these instruments
are recorded in “Other financial result”, unless bifurcatedforeign currency embedded derivatives are designated as
hedging instruments.

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

See Note 34 “Information about ﬁ nancial 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
are recognised for current tax to the extent unpaid for current
and prior periods. A current tax asset is recognised in casethe tax amount paid exceeds the amount due to current andprior periods. The benefit of a tax loss that can be carried backto recover current taxes of a previous period is recognised
as an asset provided that the related benefit is probable andcan be measured reliably.
(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 testof deferred tax assets is assessed based on the Group’s
latest 5 year operative planning also taking into accountexisting deferred tax liabilities and certain qualitative aspects
regarding the nature of the temporary differences. The
carrying amount of deferred tax assets is reviewed at eachfinancial 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 thedeferred income taxes relate to the same taxable entity andthe 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 temporary30

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 effectof the time value of money is material, provisions are measured
at the present value of the expenditure expected to be required
to settle the Group’s present obligation. As discount factor, apre-tax rate is used that reﬂects current market assessments ofthe time value of money and the risks speciﬁc to the obligation.
The provision’s increase in each period reﬂecting the passage oftime is recognised as ﬁnance cost.
Provisions are reviewed at each closing and adjusted as
appropriate to reﬂect the respective current best estimate. Thechange in the measurement of a provision for an asset retirement
obligation (see above “Property, plant and equipment”) is added
or deducted from the cost of the respective asset that has to be
dismantled and removed at the end of its useful life and the siteon 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 amountof the obligation. The amount of these provisions is calculated
to cover the difference between the Group’s exposure and theestimated value of the collateral.
Insurance indemnification or reimbursements are recognised
when it is virtually certain that they will be received. They arerecognised as separable assets. In the statement of comprehensive
income, the expense relating to a provision is presented net ofthe amount of the recognised reimbursement.
Outstanding costs are provided for at the best estimate of future
cash outﬂows. Provision for other risks and charges relates to
identiﬁable risks representing amounts expected to be realised.

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

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 for loss making contracts are recorded as write downsof work-in-process for that portion of the work which has alreadybeen 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 concernedbusiness or part of the business, the principal locations affected,
details regarding the employees affected, the restructuring’s
timing and expenditures that will have to be undertaken – hasbeen developed and the restructuring has either commenced or
the plan’s main features have already been publicly announced
to those affected by 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 deﬁ ned beneﬁ t accounting for its deﬁ ned
beneﬁ t multi-employer plan. Accordingly, the Group accounts
for its share in 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.

2

Share based compensation — In 2007, the Group also introduced
a Performance and Restricted Unit plan (LTIP) which qualiﬁes ascash settled share-based payment plan under IFRS 2. For thistype of plans, associated services received are measured at fairvalue and are calculated by multiplying the number of options (orunits) expected to vest with the fair value of one LTIP unit as ofgrant date (end of the reporting period). The fair value of each
LTIP unit is determined using a forward 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
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-base 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) Airbus Group shares at fair value matchedwith a number of free shares based on a determining ratio. The
number of free shares is recognised at fair value as personnel
expenses in 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 ﬁnancial institutions, issued corporate bonds, deposits
made by customers of Airbus Group Bank, borrowings received
from joint ventures and other parties as well as ﬁ nance leaseliabilities. Financing liabilities are recorded initially at the fair valueof the proceeds received, net of transaction costs incurred.

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

Subsequently, ﬁ nancing 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 ﬁnance income (cost)” overthe period of the ﬁnancing liability.
Financing liabilities to ﬁnancial institutions include liabilities fromsecurities lending transactions. In a securities lending transaction
Airbus Group receives cash from its counterparty and transfers
the securities subject to the lending transaction as collateral. The
amount of cash received is recognised as a ﬁnancing liability. The
securities lent are not derecognised, but remain on the Group’sbalance sheet. Their carrying amount is disclosed in Note 22“Securities”.
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.
The Group designates certain ﬁ nancial liabilities representing
payment obligations towards airlines denominated in 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.
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. For further
details please refer to Note 32 “Litigation and claims”.

32

Management Judgment and 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
and susceptible to change.
Judgments have to be made in particular when assessing whether
a contract with a customer qualiﬁes as a construction contractand in determining the amount of loss making contract provisions
as well as in the area of assessing provisions and contingent
liabilities for litigations and claims.
Accounting estimates could change from period to period andmight have a material impact on the Group’s results of operations,ﬁnancial positions and cash ﬂows. The assumptions and estimatesused by the Group’s management are based on parameterswhich 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.
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 PoC method, recognising revenue
as performance on a contract progresses measured either ona 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 the extent of progress
towards completion. For the determination of the progress of theconstruction contract signiﬁcant estimates include total contract
costs, remaining costs to completion, total contract revenues,
contract risks and other judgments. The Management of theoperating Divisions continually review all estimates involved insuch construction contracts and adjusts them as necessary. See
Note 19 “Trade receivables” for further information.

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

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 13 “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) or the group of CGUs to which goodwill is allocated involves
the use of estimates by management. The outcome predicted bythese estimates is inﬂuenced by several assumptions including
for example growth assumptions of CGUs, availability andcomposition of future defence and institutional budgets, foreignexchange ﬂuctuations or implications arising from the volatility ofcapital markets. The Group generally uses discounted cash ﬂow
based methods to determine these values. These discounted
cash ﬂow calculations basically use ﬁve-year projections that are
based on the operative plans approved by management. Cashﬂow projections take into account past experience and represent
management’s best estimate about future developments. Cashﬂows after the planning period are extrapolated using estimatedgrowth rates. Key assumptions on which management has based
its determination of fair value less costs to sell and value in use
include estimated growth rates, WACC, tax rates and foreignexchange rates. These estimates, including the methodology
used, can have a material impact on the respective values andultimately the amount of any goodwill impairment. Likewise,
whenever property, plant and equipment and other intangible
assets are tested for impairment, the determination of the assets’recoverable amount involves the use of estimates by management
and can have a material impact on the respective values andultimately the amount of any impairment. See Note 13 “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.
Employee beneﬁts — The Group accounts for pension and otherpost-retirement 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
and economic conditions and therefore result in a signiﬁ cantchange in post-retirement employee beneﬁt obligations and therelated future expense. See Note 25 “Provisions” b) for further
information.

2

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 signiﬁcantjudgment related to achieving certain performance standards aswell as estimates involving warranty costs. Depending on the size
and nature of the Group’s contracts and related programmes,
the extent of assumptions, judgments and estimates in thesemonitoring processes differs. In particular, the introduction of
new commercial aircraft programmes (such as the A350 XWB)
or major derivative aircraft programmes particularly involves anincreased level of estimates and judgments associated with the
expected development, production and certiﬁcation schedules
and expected cost components. A commercial aircraft contract
or amendment to a contract may include option clauses forextension as well as termination of full or part of the contract.
The assessment of the probability of execution of these options
is based on management’s best estimates. Estimates andjudgments are subject to change based on new information as
contracts and related programmes progress. Furthermore, thecomplex design and manufacturing processes of the Group’s
industry require challenging integration and coordination along
the supply chain including an on-going assessment of suppliers’
assertions which may additionally impact the outcome of thesemonitoring processes. See Note 25 “Provisions” c) 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 cash outﬂows, including the estimate of legal expenses
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 disclosureof any such suit or assertions, does not automatically indicatethat a provision may be appropriate. See Note 32 “Litigation andclaims” for further information.

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

Income taxes — The Group operates and earns income innumerous countries and is subject to changing tax laws in multiple
jurisdictions within these countries. Signiﬁ cant 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 ﬁ nal tax outcome of thesematters will be consistent with what is reﬂected in the historicalincome 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 eachend of the reporting period, the Group assesses whether therealisation of future tax beneﬁts is probable to recognise deferred
tax assets. This assessment requires the exercise of judgmenton the part of management with respect to, among other things,
beneﬁts that could be realised from available tax strategies andfuture taxable income, as well as other positive and negative
factors. The recorded amount of total deferred tax assets could
be reduced if estimates of projected future taxable income andbeneﬁts from available tax strategies are lowered, or if changes in3.

Scope of Consolidation

Perimeter of consolidation (31 December 2014) – The
Consolidated Financial Statements include, in addition to
Airbus Group N.V.:
2014: 286 (2013 adjusted: 257) companies which are fully
consolidated;■
2014: 50 (2013: 47) investments in joint ventures, accounted forusing the equity method;■
2014: 17 (2013 adjusted: 19) investments in associates accounted
for using the equity method. The number of investments inassociates only comprises the respective parent company.
■

34

current tax regulations are enacted that impose restrictions on thetiming or extent of the Group’s ability to utilise future tax beneﬁts.
In principle, the basis for the recoverability test of deferred tax
assets is the same as the Group’s latest 5 year operative planningalso taking into account certain qualitative aspects regarding thenature of the temporary differences. The further looking into the
future is necessary to seek sufﬁcient taxable proﬁts, the more
subjective the projections become. However, as a general cut offof the lookout period would be arbitrary, the Group determines thelookout period applied for an entity also considering qualitative
factors. Consideration of such qualitative factors could resultin not applying the full 5 year operative planning period for thedeferred tax asset recoverability assessment as well as thecontrary, i.e. extending the period to the strategic planning period.
Qualitative factors include but are not limited to an entity’s historyof planning accuracy, performance records, business model,
backlog, existence of long-term contracts as well as the natureof temporary differences. See Note 12 “Income taxes” for further
information.

Non-controlling interests do not have a material interest in theGroup’s activities and cash ﬂows (please refer to Note 23 “Total
equity” b). The Group holds interests in certain Structured Entities(“SE”), in particular with respect to its aircraft ﬁnancing activities.
The nature and extent of these interests and the risks associatedwith interests in SE that the Group does not consolidate are further
described in the Note 33 “Commitments and contingencies”.
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
On 25 July 2014, Airbus Group N.V., Leiden (Netherlands) acquired 100% shares in Salzburg München Bank AG from Raiffeisenverband
Salzburg. The Salzburg München Bank AG is a fully-licensed bank based in Munich (Germany) with around € 300 million of total assets
serving small and medium enterprises and private clients. The acquisition of Salzburg München Bank AG aims to provide additional
ﬁnancing options for the Group’s businesses. Between the acquisition date and year-end 2014, Salzburg München Bank AG reported
revenues of € 4.7 million.

2

On 28 July 2014, Airbus Operations S.L.U., Getafe (Spain), acquired additional 58.49% shares in Alestis Aerospace S.L., La Rinconada(Spain) for a total consideration of € 28 million including € 6 million due to the separate recognition of settlements of pre-existing
relationships. This provides Airbus Group with a majority shareholding of in total 60.16% in Alestis Aerospace S.L. Airbus’ investment
is intended to secure the supply chain for civil and military programmes. Alestis Aerospace S.L. reported revenues of € 148 million for
the full year 2014.
The following table summarises for the individually and collectively insigniﬁcant M&A transactions mentioned above the considerationtransferred, the fair value of identiﬁable assets acquired, liabilities assumed and any non-controlling interest as at the acquisition date.
Fair value recognised on acquisition

2014 individually and collectively insignificant acquisitions(In € million)

Intangible assets
Technologies(1)

95

Other

1

Property, plant and equipment

107

Financial assets

315

Inventories

25

Trade receivables

21

Deferred tax assets

13

Other assets

16

Cash

14

Total assets acquired

607

Provisions and contingent liabilities(2)22Trade liabilities

23

Financial liabilities (on which liabilities to banks and customer deposits)

542

Tax liabilities and other liabilities

27

Total liabilities assumed

614

Net liabilities assumed

(7)

(3)

(17)

Non-controlling interests

Consideration transferred
Preliminary goodwill arising on acquisition

63
(4)

54

Gain on acquisition

1(1) The technologies acquired are expected to be amortised over a period between 5-7 years.
(2) Includes contingent liabilities for € 2.4 million.
(3) Non-controlling interests portion related to acquisition of Alestis, measured at their proportional share in net assets.
(4) None of the goodwill of the Group’s 2014 M&A transactions is considered to be tax deductible in the respective local tax accounts.

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Notes to the Consolidated Financial Statements (IFRS)
2.1 Basis of Presentationb) Disposalsc) Disposal Groups Classiﬁed as Held for Sale

On 28 February 2014, EADS North America, Inc., Herndon (VA,
USA) sold 100% of the assets and liabilities of its Test and Services
Division to Astronics Corp., East Aurora (NY, USA), for a total
consideration of € 51 million.

As of 31 December 2014, Airbus Group accounted for non-current
assets / disposal groups classiﬁed as held for sale in the amount of€ 750 million (2013: € 0 million). The disposal groups in 2014 include
liabilities directly associated with non-current assets classiﬁed asheld for sale amounting to € 680 million (2013: € 0 million). The
disposal groups classiﬁed as held for sale comprise the following
transactions:

On 7 March 2014, Astrium Services GmbH, Ottobrunn (Germany)
disposed of 100% of the shares of ND Satcom GmbH, Immenstaad(Germany) to Quantum Industries S.à.r.l., Luxembourg (Luxembourg)with economic effect as of 1 March 2014 leading to a negative
consideration of € 9 million.
On 10 July 2014, Airbus Defence and Space sold its Test & Services
activities to a consortium consisting of ACE Management S.A.,
Paris (France) and IRDI S.A., Toulouse (France). The disposal was
performed via an acquisition company Test & Mesures Groupe
SAS in which Airbus Defence and Space will retain temporarily
33.5%. The total consideration received amounted to € 35 million(thereof € 28 million consideration received in cash and € 7 million
for the shares in Test & Mesures Groupe SAS). The amount of net
assets sold was € 31 million.
The Group recognised a € 7 million capital gain on the sale of the
Test and Services activities reported in Other income.
On 27 November 2014, Airbus Group in an off-market block tradesold to Dassault Aviation a total of 810,072 Dassault Aviation
shares at a price of € 980 per share representing a total amountof € 794 million pre transaction costs. The gain recognised inshare of proﬁt from investments amounted to € 343 million. After
this transaction, Airbus Group held 38.82% of Dassault Aviation’sshare capital and associated voting rights and then following
the cancellation by Dassault Aviation of 9% of its shares, as of
31 December 2014, Airbus Group holds 42.11% with associatedvoting rights.
On 9 December 2014, Airbus Group signed a share purchaseagreement with the State of Finland to sell its entire 26.8% sharein Patria Oyj to the Finnish defence, security and aviation services
provider for a total consideration of € 133 million. The transaction
was closed on 11 December 2014 and the Group recognised a€ 47 million capital gain within share of proﬁt from investments.

Airbus Safran Launchers Joint Venture (“ASL”)
On 16 June 2014, Airbus Group and Safran announced the intention
to create a 50/50 joint-venture consolidating their respective
launcher and propulsion system activities in France and Germany.
On 3 December 2014, the joint venture Airbus Safran Launchers has
been created after the approval of the development and productionof a new Ariane 6 launcher at the ESA Ministerial Conference. The
partners decided to structure the operation in two phases with theﬁrst phase consisting in the joint venture entity taking responsibility
and gathering resources to coordinate programme management ofcivil activities of the launcher business and also carrying relevant
participation. In a second phase all assets, contracts and industrial
capabilities shall be contributed enabling the joint venture to carryout all activities relating to the design, development, manufacturing
and selling of launchers, propulsion systems, satellite and spacevehicle propulsion for civil and military applications and the sellingand commercialisation of civil launch services. Implementation of
the second phase is subject to the joint venture entering into adevelopment contract for Ariane 6.
After approval of the ESA Ministerial Conference implementationof ﬁrst phase was conﬁrmed and associated assets and liabilities
have been classiﬁed as held for sale as at 31 December 2014.
On 14 January 2015, Airbus Group and Safran have completed
the ﬁrst phase of the integration process enabling Airbus Safran
Launchers to become operational.

Electronics Oostkamp (“EO”)
On 23 December 2014, Airbus Group signed an agreementwith Parter Capital Group AG for the sale of Airbus Defence andSpace’s Electronics Oostkamp facility in Belgium. Airbus Grouphas recognised an associated loss of € 7 million in other expenses
in 2014. The transaction was closed on 21 January 2015.

The assets and liabilities of the disposal groups consist in:
31 December 2014

(In € million)

Goodwill

23

Inventory

447

Trade receivables

262

Cash and cash equivalents

18

Assets of disposal groups classified as held for sale
Provisions

3

Customer advance payments

674

Other liabilities

3

Liabilities of disposal groups classified as held for sale

36

750

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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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

Having conducted a strategy review and in order to improve
competitiveness and better adapt to shrinking traditional markets,
the Group’s defence and space businesses are combined into
one segment from 1 January 2014 onwards. Improving accessto international customers, creating cost and market synergies in
the Group’s operations and product portfolio and better focusing
the Group’s research and development activities are among thegoals of this reorganisation.
The Group operates in three reportable segments which reﬂect
the internal organisational and management structure according
to the nature of the products and services provided.
Airbus (before 1 January 2014: Airbus Commercial) —Development, manufacturing, marketing and sale of commercial
jet aircraft of more than 100 seats; aircraft conversion and related
services; development, manufacturing, marketing and sale ofregional turboprop aircraft and aircraft components.
■
Airbus Helicopters (before 1 January 2014: Eurocopter) —Development, manufacturing, marketing and sale of civil andmilitary helicopters; provision of helicopter related services.
■
Airbus Defence and Space — Military combat aircraft andtraining aircraft; provision of defence electronics and of global
security market solutions such as integrated systems for global
border security and secure communications solutions andlogistics; training, testing, engineering and other related services;development, manufacturing, marketing and sale of missiles
systems; development, manufacturing, marketing and sale ofsatellites, orbital infrastructures and launchers; provision of space■2

related services; development, manufacturing, marketing andsale of military transport aircraft and special mission aircraft andrelated services. The former reportable segments Cassidian,
Astrium and Airbus Military form the new reportable segment
Airbus Defence and Space.
The following table presents information with respect to theGroup’s 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 and Airbus Defence andSpace and between Airbus Helicopters and Airbus. The Group’s
activities managed in the US, the holding function of the Group’s
Headquarters such as the newly acquired bank and other activities
not allocable to the reportable segments, combined together withconsolidation effects, are disclosed in the column “Others / HQ /Conso.”. The corresponding prior period information has been
restated.
Airbus 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 offair value adjustments relating to the former EADS merger andthe Airbus combination, as well as impairment charges thereon.
It also comprises disposal impacts related to goodwill and fairvalue adjustments from these transactions. EBIT pre-goodwill
impairment and exceptionals is treated by management as a key
indicator to measure the segments’ economic performance.

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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Notes to the Consolidated Financial Statements (IFRS)
2.2 Notes to the Consolidated Income Statementsa) Business Segment Information
Business segment information for the year ended the 31 December 2014 is as follows:
AirbusDefenceand Space

Total
Segments

Others /HQ /Conso.

Consolidated
62,311(In € million)

AirbusAirbusHelicopters

Total revenues

42,2806,524

13,02561,829482

Internal revenues

(749)

(528)

(297)

(1,574)(24)(1,598)

Revenues

41,531

5,996

12,72860,255458

60,713

EBIT pre-goodwill impairment and exceptionals

2,671

413

409

3,493

547

4,040

thereof:depreciation and amortisation(1,419)

(157)

(540)

(2,116)(34)(2,150)research and development expenses(2,667)

(325)

(360)

(3,352)(39)(3,391)share of profit from investments accounted
for under the equity method

62

4

176

242

598

840

additions to other provisions (see Note 25c)

1,148

523

1,580

3,251

178

3,429

Disposal of goodwill
Exceptionals depreciation / disposal
Profit before finance costs and income taxes

0

0

(6)

(6)

0

(6)

(25)

0

(16)

(41)

(2)

(43)

2,646

413

387

3,446

545

3,991

Interest result(320)

Other financial result(458)

Income taxes(863)

Profit for the period

2,350

Business segment information for the year ended the 31 December 2013 is as follows:

Airbus(In € million)(1)(2)

AirbusHelicopters

AirbusDefenceand Space(2)Total
Segments

Others /HQ /Conso.(2)Consolidated

Total revenues

39,494

6,297

13,121

58,912457

59,369Internal revenues

(933)

(486)

(382)

(1,801)(1)(1,802)

Revenues

38,561

5,811

12,73957,111456

57,567

EBIT pre-goodwill impairment and exceptionals

1,593

397

659

2,649

(25)

2,624

depreciation and amortisation(1,208)

(136)

(521)

(1,865)(62)(1,927)

research and development expenses(2,433)

(306)

(344)

(3,083)(35)(3,118)

59

3

121

183

251

434

(1,043)(533)(1,150)(2,726)(513)(3,239)

0

0

0

0

(15)

(15)

thereof:share of profit from investments accounted
for under the equity method(3)

additions to other provisions (see Note 25c)
Impairment and disposal of goodwill
Exceptionals depreciation / disposal

Profit before finance costs and income taxes

(26)

(1)

(11)

(38)

(1)

(39)

1,567

396

648

2,611

(41)

2,570

Interest result(332)

Other financial result(278)

Income taxes(477)

Profit for the period

1,483(1) Previous year figures are adjusted due to the new segment structure.
(2) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.
(3) Includes (€ 292 million adjusted) expenses for restructuring provisions associated to the Group’s reorganisation mainly in the defence and space business.

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2.2 Notes to the Consolidated Income Statements

Segment Capital Expenditures(1)

2014

2013

Airbus(2)

1,713

2,116

Airbus Helicopters

303

279

Airbus Defence and Space(2)

497

466

(In € million)

35

57

2,548

2,918

2014

2013

Airbus(1)41,34239,812

Airbus Helicopters

10,248

9,775

Airbus Defence and Space(1)17,66018,678Others / HQ / Conso.(1)

3,337

3,564

72,587

71,829Others / HQ / Conso.

Total capital expenditures(2)2(1) Excluding expenditure for leased assets.
(2) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Segment Assets(In € million)

Total segment assets(1)

UnallocatedDeferred and current tax assets(1)

6,322

4,361

Securities(1)

9,172

6,883

Cash and cash equivalents(1)

7,271

7,201

Assets classified as held for sale750

096,102

90,2742014

2013(1)

Total assets(1)(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

b) Revenues by Geographical Area
(In € million)

Germany

4,448

4,297

France

4,294

4,585

United Kingdom

3,540

2,967

Spain

1,493

1,512

Other European Countries

6,479

6,948

Asia / Pacific

19,37919,252

North America

9,731

8,670

Middle East

6,520

5,118

Latin America

3,844

3,398

Other Countries

985

820

60,71357,567

Revenues by geographical area
(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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Notes to the Consolidated Financial Statements (IFRS)
2.2 Notes to the Consolidated Income Statementsc) Property, Plant and Equipment by Geographical Area
31 December(In € million)

France(1)Germany(1)United Kingdom

(1)

Spain
Other Countries(1)Property, plant and equipment by geographical area(1)

2014

2013

6,438

6,037

4,428

4,411

2,891

2,778

1,534

1,364

817

644

16,10815,234(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Property, plant and equipment split by geographical area excludes leased assets of € 213 million (2013 adjusted: € 351 million).

6.

Revenues and Gross Margin

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,
contracted research and development and customer ﬁnancing
revenues.

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

Details of Revenues:(In € million)

2014

2013(1)

Revenues from construction contracts

7,916

8,854

Other revenues

52,797

48,713

Total

60,71357,567

8,279

7,517

Thereof service revenues including sale of spare parts(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Revenues of € 60,713 million (2013 adjusted: € 57,567 million)
increase by € +3,146 million (5%) mainly at Airbus (€ +2,786 million).
The revenue growth in Airbus results from a more favourable
delivery mix. Airbus delivered more aircraft (629 with revenue
recognition versus 626 in the previous year). Airbus Helicopters
contributed also positively. Airbus Defence and Space revenues
decrease slightly and include revenues related to the A400M of€ 1,561 million (2013: € 1,006 million).
The Gross Margin increases by € +983 million to € 8,937 million
compared to € 7,954 million (adjusted) in 2013 with contribution
mainly from Airbus. Gross margin rate increased from 13.8%
to 14.7%. In Airbus, the increase was driven by operational
improvement including A380 progress towards breakeven andthe favourable evolution of maturing hedges, partially offset byincreased A350 XWB support costs. In the last quarter 2013, a
negative charge of € 434 million was recorded on the A350 XWB
programme contributing to the improvement seen in 2014.

22 December. Despite this important achievement, signiﬁcantchallenges remain. The industrial ramp up preparation is underway
and associated risks will continue to be closely monitored in linewith the schedule, aircraft performance and overall cost envelope,as per customer’s commitment.
After eight aircraft deliveries in 2014, the A400M programme is ina phase of progressive enhancement of military capabilities withdelays incurred. The sequence of progressive enhancements andassociated deliveries are under negotiation with the customers to
reﬂect revised programme baseline and delivery schedule.
In the last quarter of 2014, Management has reviewed theprogramme evolution mostly driven by military functionality
challenges and industrial ramp-up together with associatedmitigation actions. As a result of this review, Airbus Defence
and Space has recorded based on Management best estimate
an additional net charge of € 551 million for the period ended
31 December 2014.

The A350 XWB Entry-into-service occurred at the end of 2014,
with the ﬁ rst A350 XWB being delivered to Qatar Airways on

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2.2 Notes to the Consolidated Income Statements

The A400M SOC 1 milestone remains to be achieved. SOC 1 fell
due end October 2013, and the termination right related thereto
became exercisable by OCCAR / Nations on 1 November 2014
after a 12-month grace period. It has not at the date hereof been

7.

exercised. Management judges that it is highly unlikely that thistermination right will be exercised.
The A400M programme remains in a critical phase and associatedrisks will continue to be closely monitored.

Functional Costs

Inventories recognised as an expense during the period amountto € 41,523 million (2013 adjusted: € 39,385 million).

2

Further included in cost of sales are amortisation expenses offair value adjustments of non-current assets in the amount of€ 43 million (2013 adjusted: € 39 million).

Personnel expenses are:(In € million)

2014

2013(1)

Wages, salaries and social contributions

12,291

12,147549

536

12,84012,683

Net periodic pension cost (see Note 25 “Provisions” b)

Total(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

8.

Research and Development Expenses

Research and development expenses in 2014 amount to€ 3,391 million compared to € 3,118 million (adjusted) in 2013,
primarily reﬂecting R&D activities at Airbus. The main contribution

9.

to the expenses comes from the A350 XWB programme. In
addition, an amount of € 58 million of development costs for theA350 XWB programme has been capitalised.

Other Income(In € million)

Other income(1)

Thereof income from sale of fixed assets(1)Thereof rental income(1)

Thereof release of allowances

2014

2013

330

272

108

66

67

14

2

5

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Other income increased by € +58 million mainly as a result of the sale of the Paris Headquarters building.

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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

10. Other Expenses

2014

2013

179

259

Thereof goodwill impairment charge

015Thereof loss from disposal of fixed assets(1)20

5(In € million)

Other expenses(1)(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

11. Total Finance Costs
Interest result in 2014 comprises interest income of € 142 million(2013 adjusted: € 161 million) and interest expense of € -462 million(2013 adjusted: € -493 million). Included in interest income is thereturn on cash and cash equivalents, securities and ﬁ nancial
assets such as loans and ﬁnance leases. Interest expense includes
interests on ﬁ nancing liabilities and on European Government
refundable advances of € -205 million (2013: € -254 million).

negative impact from foreign exchange translation of monetary
items of € -121 million (2013: € -64 million) and the negativerevaluation of ﬁnancial instruments of € -240 million (2013 adjusted:€ -31 million).
In 2014, the Group capitalised € 20 million of borrowing cost on
the production of qualifying assets (2013: € 12 million). The Group’s
borrowing rate at the end of 2014 was 2.12% (2013: 2.24%).

Other financial result in 2014 amounts to € -458 million (2013adjusted: € -278 million) and mainly includes charges from theunwinding of discounts by € -117 million (2013: € -171 million), the12. Income Taxes
The expense for income taxes is comprised of the following:(In € million)

2014

2013(1)

Current tax expense

(546)

(430)

Deferred tax expense

(317)

(47)

Total

(863)

(477)

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

42

The Group’s parent company, Airbus Group N.V., legally seatedin Amsterdam, The Netherlands, applies Dutch tax law using
an income tax rate of 25.0% for 31 December 2014 and for
31 December 2013.

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% in2014 and 2013.

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. Thischange has been prolonged for the year 2015. For subsequent
years the tax rate should go down again to 34.43%. Deferred taxes
are calculated accordingly.

With respect to the Spanish subsidiaries, the corporate income
tax rate amounts to 30% in 2014 and 2013. In November 2014, a
tax law has been enacted changing the rate from income tax to
28% for the year 2015 and to 25% thereafter. Deferred taxes arecalculated accordingly.

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

All other foreign subsidiaries apply their national tax rates.

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2.2 Notes to the Consolidated Income Statements

The following table shows a reconciliation from the theoretical income tax (expense) – using the Dutch corporate tax rate of 25.0% in2014 and 2013 to the reported tax (expense). The reconciling items represent, besides the impact of tax rate differentials and tax ratechanges, non-taxable beneﬁts or non-deductible expenses arising from permanent differences between the local tax base and thereported Consolidated Financial Statements according to IFRS rules.
(In € million)

2014

2013(1)

Profit before income taxes

3,213

1,960

* Corporate income tax rate

25.0%

25.0%

Expected (expense) for income taxes

(803)

(490)

Effects from tax rate differentials

(270)

(183)

Income from investments / associates

265

119

Tax credit for R&D expenses

77

72

Change of tax rate

(47)

(45)

Change in valuation allowances

(72)

110

Non-deductible expenses and tax-free income

(25)

(47)

Other

12

(13)

(863)

(477)

Reported tax (expense)

2(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Changes in valuation allowances represent reassessments of the recoverability of deferred tax assets based on future taxable proﬁts
of certain companies mainly for Airbus in Germany and Airbus Defence and Space in the United Kingdom. The amount of change
in valuation allowances of € -72 million in 2014 (2013 adjusted: € 110 million) excludes a positive impact of € 4 million (2013 adjusted:€ 65 million) from a change in tax rates which is presented in the line “change of tax rate”.
Deferred income taxes as of 31 December 2014 are related to the following assets and liabilities:

1 January 2014(1)(In € million)

DeferredTax
assetsDeferredTaxliabilities

Other movements

Movement throughincome statement

OCI /IAS 19R&D tax
credits

Deferredtax benefit(expense)

Others(2)

31 December 2014
DeferredTax
assetsDeferredTaxliabilities

Intangible assets

146

(456)

0

3

0

(118)

50

(475)

Property, plant and equipment

418(1,284)

0

24

0

(23)

490

(1,355)Investments and other long-term financial assets

337

(155)

(30)

0

0

13

332

(167)

Inventories

1,116

(236)

0

(10)

0

(108)

1,219

(457)

Receivables and other assets

246(2,866)

599

(17)

0

168

397

(2,267)

Prepaid expenses

3

(6)

0

0

0

5

2

0

Provision for retirement plans

1,137

0

577

20

0

163

1,897

0

Other provisions

2,425

(347)

0

1

0

(155)

2,422

(498)

795

(971)

1,392

(10)

0

258

2,335

(871)

Liabilities

82

(46)

0

0

0

(5)

53

(22)

Net operating loss and tax credit carry forwards

Deferred income

2,441

0

0

74

12

(447)

2,080

0

Deferred tax assets / (liabilities)
before offsetting

9,146(6,367)

2,538

85

12

(249)

11,277(6,112)

Valuation allowances on deferred tax assets

(500)

0

0

(10)

0

(68)

(578)

0

Set-off(4,913)

4,913

0

0

0

0

(4,982)

4,982

Net Deferred tax assets / (liabilities)

3,733(1,454)

2,538

75

12

(317)

5,717

(1,130)(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.
(2) “Others” mainly comprises changes in the consolidation scope and foreign exchange rate effects.

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2.2 Notes to the Consolidated Income Statements

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

Other movements(1)Movement throughincome statement(1)DeferredTaxliabilities

OCI /IAS 19(2)

R&D tax
credits

1 January 2013(1)DeferredTax
assets(In € million)

Others31 December 2013(1)Deferredtax benefit(expense)

DeferredTax
assetsDeferredTaxliabilities

Intangible assets

153

(402)

0

1

0

(62)

146

(456)

Property, plant and equipment

380(1,137)

0

1

0

(110)

418

(1,284)

Investments and other long-term financial assets

313

(107)

13

0

0

(37)

337

(155)

Inventories
Receivables and other assets
Prepaid expenses

1,690

(37)

0

3

0

(776)

1,116

(236)

85

(2,292)

(391)

(3)

0

(19)

246

(2,866)

1

(9)

0

0

0

5

3

(6)

Provision for retirement plans

1,078

0

20

0

0

39

1,137

0

Other provisions

2,366

(262)

0

(2)

0

(24)

2,425

(347)

677

(1,276)

(324)

(1)

0

748

795

(971)

Liabilities
Deferred income

224

(36)

0

(96)

0

(56)

82

(46)

Net operating loss and tax credit carry forwards

2,376

0

0

(56)

51

70

2,441

0

Deferred tax assets / (liabilities)
before offsetting

9,343(5,558)

(682)

(153)

51

(222)

9,146

(6,367)

Valuation allowances on deferred tax assets

(819)

0

0

144

0

175

(500)

0

Set-off(4,099)

4,099

0

0

0

0

(4,913)

4,913

Net Deferred tax assets / (liabilities)

4,425(1,459)

(682)

(9)

51

(47)

3,733

(1,454)(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.
(2) “Others” mainly comprises changes in the consolidation scope and foreign exchange rate effects.

Companies in deﬁcit situations in two or more subsequent years recorded a total deferred tax asset balance of € 115 million (in 2013adjusted: € 12 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
in Germany) 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
2014

31 December
2013(1)

900

1,903

167

2,982

458

6,410

7,347

Trade tax loss carry forwards

0

2,240

0

0

0

2,240

2,217

Tax credit carry forwards

0

0

393

0

5

398

369

342

617

435

596

90

2,080

2,441

(6)

(234)

(95)

(90)

(15)

(440)

(395)

336

383

340

506

75

1,640

2,046

(In € million)

Net Operating Losses (NOL)

Tax effect
Valuation allowances

Deferred tax assets on NOL’s
and tax credit carry forwards(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

NOLs, capital losses and trade tax loss carry forwards are indeﬁnitely usable in France, Germany, Great Britain and in Spain. In Spain,
tax credit carry forwards still expire after 18 years. The ﬁrst tranche of tax credit carry forwards (€ 3 million) will expire in 2021.

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

Roll forward of deferred taxes:(In € million)

2014

2013(1)

Net deferred tax asset beginning of the year

2,279

2,966

Deferred tax (expense) in income statement

(317)

(47)

Deferred tax recognised directly in AOCI (IAS 39)

1,961

(702)

Deferred tax on remeasurement of the net defined benefit liability

577

20

Others

87

42

4,587

2,279

2014

2013(1)

(51)

(21)

Net deferred tax asset at year end

2(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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

Available-for-sale investments
Cash flow hedges

1,465

(526)

Deferred tax on remeasurement of the net defined benefit liability

1,548

971

Total

2,962

424

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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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
13. Intangible Assets
A schedule detailing gross values, accumulated depreciation and impairment and net values of intangible assets as of 31 December
2014 is as follows:

Cost(In € million)

Goodwill

Balance at
1 January2014(1)
11,061

Changes in
Exchangeconsolidationdifferences Additions
scope(2)90

054Reclassification(3)Disposals

Balance at
31 December
2014

(23)

(105)

11,077

Capitalised development costs

2,280

27

225

(16)

(5)

(4)

2,507

Other intangible assets

2,900

55

195

117

35

(37)

3,265

16,241

172

420

155

7

(146)

16,849Reclassification

Disposals

Balance at
31 December
2014

0

99

(1,098)Total(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.
(2) Includes intangible assets related to Alestis acquisition (see Note 4 “Acquisitions and disposals”).
(3) Includes intangible assets reclassified to assets of disposal groups classified as held for sale.

Amortisation / Impairment(In € million)

Goodwill
Capitalised development costs

Balance at
1 January2014(1)(1,189)Changes in
Exchangeconsolidationdifferences Additions
scope
(8)

0

0

(683)

(12)

(137)

12

(1)

2

(819)

Other intangible assets(1,869)

(21)

(282)

(23)

(8)

29

(2,174)

Total(3,741)

(41)

(419)

(11)

(9)

130

(4,091)(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Net Book Value(In € million)

Balance at
1 January2014(1)

Balance at
31 December
2014

Goodwill

9,872

9,979

Capitalised development costs

1,597

1,688

Other intangible assets

Total

1,031

1,091

12,50012,758(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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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
2013 is as follows:

Cost(In € million)

Balance at
1 January
2013

Goodwill(1)11,100Changes in
consolidation
Exchangescopedifferences Additions(50)

0

Reclassification

Disposals

Balance at
31 December
2013

0

0

11,061

11

Capitalised development
costs(1)

1,915

(7)

417

0

(42)

(3)

2,280

Other intangible assets(1)

2,667

(43)

225

10

108

(67)

2,900

15,682

(100)

642

21

66

(70)

16,241

Reclassification

Disposals

Balance at
31 December
2013

Total(1)2(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Amortisation / Impairment
Balance at
1 January
2013(In € million)

Goodwill
Capitalised development
costs(1)Other intangible assets(1)

Total(1)Changes in
Exchangeconsolidationdifferences Additions
scope(1,174)

0

(15)

0

0

0

(1,189)

(581)

4

(106)

0

0

0

(683)

(1,656)

12

(274)

(3)

(10)

62

(1,869)(3,411)

16

(395)

(3)

(10)

62

(3,741)(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Net Book Value
Balance at
1 January
2013 (1)Balance at
31 December
2013 (1)

Goodwill

9,926

9,872

Capitalised development costs

1,334

1,597

(In € million)

Other intangible assets

Total

1,011

1,031

12,271

12,500(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Additions to amortisation / impairment include impairment of capitalised development costs (€ -14 million) and impairment of otherintangible assets (€ -10 million) at Airbus Defence and Space.

Development Costs
The Group has capitalised development costs in the amount of € 1,688 million as of 31 December 2014 (€ 1,597 million adjusted as of
31 December 2013) 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 a unit of production basis. Capitalisation for development costs of theA350 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 € 777 million was capitalised.

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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

Impairment Tests
The Group performed impairment tests for goodwill and capitalised development costs not yet available for use in the fourth quarterof the ﬁnancial year on Cash Generating Unit (“CGU”) level.
As of 31 December 2014 and 2013, goodwill was allocated to CGUs or Group of CGUs, which is summarised in the following scheduleon segment level:(In € million)

AirbusAirbusHelicopters

Airbus Defence
and Space(1)Others / HQ /Conso.(1)Consolidated (1)Goodwill as of 31 December 2014

6,768

310

2,887

14

9,979

Goodwill as of 31 December 2013

6,680

302

2,876

14

9,872

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11 and the Group’s reorganisation that resulted in the merger of Airbus defence business into Airbus
Defence and Space.

Due to the ﬁrst time application of IFRS 11 and in accordancewith the IFRS 11 transition guidance, Goodwill in the total amountof € 1,090 million (including € 658 million for MBDA) has been
allocated to Airbus Group joint ventures, that are now accounted
for by using the equity method and is therefore no longer allocatedto Airbus Group CGUs. As part of the re-branding of EADS to
Airbus Group, and the accompanied reorganisation including
the integration of the Group’s defence and space activities in the
beginning of 2014, the business activities and related former CGUs
of former Cassidian, Astrium and Airbus Military were merged into
the CGU of Airbus Defence and Space.

in past economic cycles in order to reﬂect current uncertainty
regarding market developments in the long-term.

General Assumptions Applied in the Planning
Process

AirbusThe 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 takes into account general economic data
derived from external macroeconomic and ﬁnancial studies andcovers a planning horizon of ﬁve years. The operative planningassumptions 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, Great Britain and the USA.
The Group follows an active policy of foreign exchange risk hedging.
As of 31 December 2014, the total hedge portfolio with maturities
up to 2022 amounts to US$ 88 billion and covers a major portionof the foreign exchange exposure expected over the period of theoperative planning (2015 to 2019). The average US$/€ hedge rateof the US$/€ hedge portfolio until 2022 amounts to 1.33 US$/€ andfor the US$/GBP hedge portfolio until 2020 amounts to 1.59 US$/
GBP. For the determination of the operative planning in the CGUs,
management assumed future exchange rates of 1.35 US$/€ from2015 onwards to convert in € the portion of future US$ which are
not hedged. Foreign exchange exposure arises mostly from Airbus
and to a lesser extent from the other Airbus Group segments.

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 pre-tax (WACC) and estimated growth rates
as well as the underlying foreign exchange rates. These estimates,
including the methodology used, can have a material impact on therespective values and hence are subject to uncertainties.

The goodwill allocated to Airbus mainly relates to the creation 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 to
ramp-up the production of the A320 programme to 50 a/c permonth in 2017, and to adapt the production rate on the Long
Range-programme at rate to 6 a/c per month in 2016, and tostabilise A380 production at the current level. In the absence oflong-term ﬁnancial reference, expected cash ﬂows generated
beyond the planning horizon are considered through a terminal
value. The terminal value reﬂects management’s assessment of anormative 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 2014. 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 WACC of 9.4%
(in 2013: 10.1%);■
carrying value as well as planned cash ﬂows include impacts
from the existing hedge portfolio.
■

The assumption for the perpetuity growth rate used to calculate theterminal values as of 31 December 2014 has been determined with
1% (previous year: 1%). This assumption is lower than experienced

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

With regard to the assessment of the value in use for the CGU
Airbus, management believes that the likelihood of a change in
the above key assumptions to an extent that would cause therecoverable 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 the Group accounts.

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, to the ramp-up
of transformation plan setup this year, to the cost efﬁ ciency
improvements on key programmes and to capitalise on the Airbus
Helicopters brand.

■

The current positive difference between the recoverable value andthe carrying value of Airbus’ net assets indicates that the assessed(negative) impacts of the sum of these sensitivities would not imply
an impairment charge in Group accounts.

Airbus Helicopters
In order to reﬂect the different underlying business risks, a segment
speciﬁc WACC factor has been applied. For Airbus Helicopters
the projected cash ﬂows were discounted using a WACC of 9.0%
(in 2013: 9.5%).
The main key achievements in 2014 are the certiﬁcation and entryinto-service of new products (EC175, EC145 T2, EC135P3/T3), thefull return to service of EC225, the continuing deliveries of NH90 in
Europe (Sweden, Greece, Italy, Belgium, Finland, Germany), andof Super Puma throughout the world. Following continued efforts

Airbus Defence and Space

2

In order to reﬂect the different underlying business risks, a segment
speciﬁc WACC factor has been applied. Airbus Defence and Spaceapplied a WACC of 8.7% (in 2013: 8.7% for Cassidian and Airbus
Military and 9.6% for Astrium). Cash ﬂow projections are based on
operative planning covering a ﬁve-year planning period.
The main key achievements in 2014 are related to order intakes
at Space Systems (Ariane 5PB+, Falcon Eye and several
telecommunications satellites) as well as at Military Aircraft(International Light & Medium aircraft orders, A400M UK ISS
Contract and Euroﬁghter E-Scan radar). The main deliveries in2014 were related to A400M ramp-up and continuing Tanker andLight & Medium deliveries, successful Ariane 5 and further satellites
launches. Based on these achievements, the planning period
is characterised by further order intake in home countries andexport market in key areas such as Tankers, Combat Air systems,
Earth Observation, launchers and Satellite Communications. The
proﬁtability is assumed to increase over the operating planning
period, leading to improved performance and also cost synergies(costs reductions).

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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

14. 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 2014:

Cost(In € million)

Balance at
1 January2014(1)

Changes in
consolidation
Exchangescopedifferences Additions

Reclassification

Disposals

Balance at
31 December
2014

94

375

(296)

8,874

405

111

1,519

(107)

18,850

183

(5)

43

(258)

4,195

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

8,519

57

125

Technical equipment
and machinery

16,524

398

4,113

119

Other equipment, factoryand office equipment
Construction in progress

Total

2,536

30

1,500

(7)

(1,935)

(19)

2,105

31,692

604

2,213

193

2

(680)

34,024

Reclassification

Disposals

Balance at
31 December
2014(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Depreciation / Impairment(In € million)

Balance at
1 January2014(1)

Changes in
Exchangeconsolidationdifferences Additions
scope

Land, leasehold improvements
and buildings including buildings
on land owned by others(3,960)

(17)

(307)

4

(30)

244

(4,066)

Technical equipment
and machinery(9,342)(234)(1,085)

(45)

(1)

103

(10,604)

Other equipment, factoryand office equipment(2,805)

(67)

(300)

24

(7)

122

(3,033)

Construction in progress

0

0

0

0

0

0

0

(16,107)(318)(1,692)

(17)

(38)

469

(17,703)

Total(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Net Book Value
Balance at
1 January2014(1)

Balance at
31 December
2014

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

4,559

4,808

Technical equipment
and machinery

7,182

8,246

(In € million)

Other equipment, factoryand office equipment

1,308

1,162

Construction in progress

2,536

2,105

15,585

16,321

Total(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Additions to depreciation / impairment include impairment of other equipment (€ -25 million) at Airbus and of technical equipment andmachinery (€ -8 million), of other equipment (€ -5 million), and of land and buildings (€ -1 million) at Airbus Defence and Space.

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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 2013:

Cost(In € million)

Balance at
1 January
2013

Changes in
Exchangeconsolidationdifferences Additions
scope

Reclassification

Disposals

Balance at
31 December
2013

Land, leasehold improvements
and buildings including buildings
on land owned by others(1)

8,261

(35)

100

0

319

(126)

8,519

Technical equipment
and machinery(1)15,073

(109)

414

4

1,277

(135)

16,524

Other equipment, factoryand office equipment(1)

3,410

(51)

340

0

1,104

(690)

4,113

Construction in progress(1)

3,525

(27)

1,582

0

(2,534)

(10)

2,536

30,269

(222)

2,436

4

166

(961)

31,692

Reclassification

Disposals

Balance at
31 December
2013

Total(1)2(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Depreciation / Impairment(In € million)

Balance at
1 January
2013

Changes in
Exchangeconsolidationdifferences Additions
scope

Land, leasehold improvements
and buildings including buildings
on land owned by others(1)(3,810)

11

(291)

0

31

99

(3,960)Technical equipment
and machinery(1)(9,255)

68

(893)

(1)

620

119

(9,342)Other equipment, factoryand office equipment(1)(2,302)

24

(289)

0

(665)

427

(2,805)Construction in progress

Total(1)

0

0

0

0

0

0

0

(15,367)103(1,473)

(1)

(14)

645

(16,107)(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Net Book Value
Balance at
1 January
2013(1)

Balance at
31 December
2013(1)

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

4,451

4,559

Technical equipment
and machinery

5,818

7,182

Other equipment, factoryand office equipment

1,108

1,308

(In € million)

Construction in progress

Total

3,525

2,536

14,902

15,585(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Additions to depreciation / impairment include impairment of other equipment (€ -20 million) at Airbus and of technical equipment andmachinery at Airbus Defence and Space (€ -2 million).

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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2.3 Notes to the Consolidated Statements of Financial Position

Property, plant and equipment include at 31 December 2014
and 2013, buildings, technical equipment and other equipment
accounted for in ﬁxed assets under ﬁnance lease agreements for
net amounts of € 154 million and € 146 million, net of accumulated
depreciation of € 79 million and € 91 million. The related depreciation
expense for 2014 was € 10 million (2013: € 13 million).

Other equipment, factory and office equipment include thenet book value of “aircraft under operating lease” for € 213 millionand € 351 million as of 31 December 2014 and 2013 (adjusted),respectively; related accumulated depreciation is € 162 million and€ 264 million (adjusted). Depreciation expense for 2014 amounts
to € 31 million (2013 adjusted: € 38 million).

The “aircraft under operating lease” includes 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 2014 are as follows:(In € million)

Not later than 201542

Later than 2015 and not later than 201972

Later than 2019

0

Total

114

The total net book values of aircraft under operating lease are as follows:
31 December(In € million)

2014

2013(1)

327

485

(114)

(134)

213

351

Net book value of aircraft under operating lease before impairment charge
Accumulated impairment

Total net book value of aircraft under operating lease(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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 € 276 million as of 31 December 2014 compared to 2013 of € 345 million (adjusted).

15. 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

Accumulated
Accumulated
depreciation
Book value
Depreciation / depreciation
Disposal at
disposal of 31 December
Historical 31 December 31 December
2014
2013
2013 historical cost depreciation
cost
211

(142)

As of 31 December 2014, the fair value of the Group’s investment
property amounts to € 92 million (in 2013: € 83 million). For the
purposes of IAS 40 “Investment property”, the fair values havebeen determined by using external appraisal reports or using

52

69

(2)

0

(142)

Book value
31 December
2014
67

discounted cash ﬂ ow projections for estimated rental income
less rental expenses. Related rental income in 2014 is € 11 million(in 2013: € 9 million) with direct operating expenses amounting to€ 2 million (in 2013: € 2 million).

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

16. Investments Accounted for Under the Equity Method
The following table sets forth the composition of investments in associates and joint ventures accounted for under the equity method:
31 December(In € million)

2014

2013(1)

Investments in associates

2,506

2,894

Investments in joint ventures

885

964

3,391

3,858

Investments accounted for under the equity method

2(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

The following table shows the composition of the related share of proﬁt from investments accounted for under the equity method:(In € million)

Share of profit from investments in associates2014

2013(1)

721

295

Share of profit from investments in joint ventures

119

139

Share of profit from investments accounted for under the equity method

840

434

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

The share of proﬁt from investments in associates includes a gain of € 343 million from the partial sale of shares of Dassault Aviation
and a gain of € 47 million from the disposal of shares of Patria (for more details, please see Note 4 “Acquisitions and disposals”).
A list of major investments in associates and joint ventures and the proportion of ownership is included in Appendix “Information on
principal investments”.

a) Investments in Associates
The Group’s only individually material investment in associates is
Dassault Aviation (42.11% and 46.32% at 31 December 2014 and2013) of € 2,429 million and € 2,747 million (for the disposal of a partof this investment in 2014, see Note 4 “Acquisitions and disposals”).
Dassault Aviation, Paris (France) is active in the market for military
jet aircraft and business jets. The Group’s 42.11% interest in
Dassault Aviation’s market capitalisation (2013: 46.32%), derived
from an observable free ﬂoat of 3.5%, amounts to € 4,124 million
as of 31 December 2014 (as of 31 December 2013: € 4,352 million).
The most recent available financial information of Dassault
Aviation is the published consolidated IFRS ﬁnancial statements
as of 30 June 2014 (as of 31 December 2013: the publishedconsolidated IFRS ﬁnancial statements as of 30 June 2013). As
there is no published Dassault Aviation ﬁnancial information forthe second half-year 2014 at the date of authorisation for issueof the Airbus Group 2014 ﬁnancial statements, best estimateshave been used based on the available Dassault Aviation ﬁnancial
information as of 31 December 2014. Thus, adjustments for theeffects of signiﬁcant transactions or events that occurred between
the 1 July 2014 and the 31 December 2014 are included. The
equity investment in Dassault Aviation includes IFRS catch-up
adjustments for income and other comprehensive income forprior periods.

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

The following table reﬂects summarised ﬁnancial information of Dassault Aviation, based on its most recent published Consolidated
Financial Statements in accordance with IFRS:(In € million)

2014

2013

Revenues

1,514

4,593

Profit for the period

220

459

Other comprehensive income

(62)

(31)

Total comprehensive income (100%)

158

428

Non-current assets

5,262

5,457

Current assets

4,816

4,611

201

205

Current liabilities

Non-current liabilities

4,699

4,751

Total equity (100%)

5,178

5,112

2014

2013

2,747

2,519

255

247

The development of the investment is as follows:(In € million)

Group’s interest in equity on investee at beginning of the year
Profit from continuing operations attributable to the Group(1)

Other comprehensive income attributable to the Group(1)

(29)

25

Dividends received during the year

(42)

(44)

Disposal of shares(2)

(502)

0

Carrying amount of the investment at 31 December

2,429

2,747

(1) Includes adjustments and estimates as defined above.
(2) For more details on the partial sale of Dassault Aviation shares, please see Note 4 “Acquisitions and disposals”.

Furthermore, the Group has interests in a number of individually immaterial associates, being accounted for under the equity method.
They are stated in aggregate in the following table:(In € million)

2014

2013

Group’s interest in equity on investee at beginning of the year

147

135

Profit from continuing operations attributable to the Group

76

48

Other comprehensive income attributable to the Group

(35)

(28)

Dividends received during the year

(20)

(8)

Disposal of shares(1)

(91)

0

Carrying amount of the investment at 31 December

77

147

(1) For more details, please see Note 4 “Acquisitions and disposals”.

The cumulative unrecognised comprehensive loss amounts to € -147 million and € -55 million as of 31 December 2014 and 2013,
respectively (thereof € -92 million for the period).

b) Investments in Joint Ventures
The joint ventures in which the Group holds interests are structured
in separate incorporated companies. Under the joint arrangementagreements, unanimous consent is required from all parties to theagreement for all relevant activities. The Group and its partners
have rights to the net assets of the Company through the termsof the contractual agreements.

54

and Finmeccanica. MBDA offers missile systems capabilities thatcover the whole range of solutions for air dominance, groundbased air defence and maritime superiority, as well as advanced
technological solutions for battleﬁeld engagement.

The Group’s material joint ventures are MBDA S.A.S., Paris (France)
and Atlas Elektronik GmbH (“Atlas”), Bremen (Germany) as parent
companies of their respective groups. Both groups are not publicly
listed.

Atlas is a joint venture of Thyssen Krupp and the Group (49%
at 31 December 2014 and 2013). It provides maritime and naval
solutions above and below the ocean surface and holds a leading
position in all ﬁelds of maritime high technology from commandand control systems to coastal surveillance systems and in inhouse support.

The Group holds a 37.5% stake in MBDA at 31 December 2014 and2013, which is a joint venture between the Group, BAE Systems

The carrying amount and the respective results of both, MBDA andAtlas, are reported in the Defence and Space segment.

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

The following table summarises ﬁnancial information for MBDA and Atlas, based on their Consolidated Financial Statements preparedin accordance with IFRS:
MBDA

Atlas

(In € million)

2014

2013(1)2014

2013(1)

Revenues

2,394

2,829

416

441

Depreciation and amortisation

(83)

(71)

(14)

(14)

Interest income

16

14

1

1

Interest expense

(1)

(6)

(5)

(2)

Income tax expense

(64)

(86)

(9)

(6)

Profit from continuing operations

148

199

12

19

Other comprehensive income

(189)

(16)

(15)

(2)

Total comprehensive income (100%)

(41)

183

(3)

17

Non-current assets

1,967

1,850

197

158

Current assets

5,298

5,059

555

604

1,521

1,514

255

281

1,307

1,103

297

177

13

12

3

2

5,845

5,553

293

374

26

3

2

0

113

253

162

211

thereof cash and cash equivalents
Non-current liabilities
thereof non-current financial liabilities(excluding trade and other payables and provisions)
Current liabilities
thereof current financial liabilities(excluding trade and other payables and provisions)

Total equity (100%)

MBDA

Atlas

2014

2013(1)2014

2013(1)

Group’s interest in equity on investee

42

95

79

103

Goodwill

282

282

257

257

Fair value adjustments and modifications for differencesin accounting policies

(18)

4

(9)

(9)

Carrying amount of the investment at 31 December

306

381

327

351

(In € million)

2(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

The development of these investments is as follows:
MBDA

Atlas

2014

2013(1)2014

2013(1)

Group’s interest in equity on investee at beginning of the year

381

354

351

347

Profit from continuing operations attributable to the Group

56

75

6

10

(In € million)

Other comprehensive income attributable to the Group

(74)

(6)

(7)

(1)

Dividends received during the year

(57)

(42)

(23)

(5)

Carrying amount of the investment at 31 December

306

381

327

351

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

The Group’s share of contingent liabilities of MBDA and of Atlas as of 31 December 2014 is € 329 million (2013: € 315 million) and€ 15 million (2013: € 8 million), respectively.

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2.3 Notes to the Consolidated Statements of Financial Position

Furthermore, the Group has interests in a number of individually immaterial joint ventures, being accounted for under the equity method.
They are stated in aggregate in the following table:
2014

2013(1)

Group’s interest in equity on investee at beginning of the year

232

229

Profit from continuing operations attributable to the Group

57

54

Other comprehensive income attributable to the Group

16

(5)

Dividends received during the year

(53)

(48)

0

2

252

232

(In € million)

FX impact

Carrying amount of the investment at 31 December(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

The Group’s share of contingent liabilities of its joint ventures as of 31 December 2014 amounts to € 2 million (2013: € 6 million).

17. Other Investments and Other Long-Term Financial Assets
The following table sets forth the composition of other investments and other long-term ﬁnancial assets:
31 December

2013(1)

2014(In € million)

Non-current other investments and other long-term financial assets
617

607

Other long-term financial assets

1,152

1,149

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

1,769

1,756

167

132

Other investments

Current portion of other long-term financial assets(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Other investments mainly comprise the Group’s participations,the most signiﬁcant being at 31 December 2014 the participations
in CARMAT SAS (Group share: 24.2%, 2013: 27.3%) amounting to€ 68 million (2013: € 136 million) and AviChina (Group share: 5.0%)
amounting to € 140 million (2013: € 116 million).
As of 31 December 2014, other income from investments
amounts to € 55 million (€ 49 million adjusted as of 31 December2013).
Other long-term financial assets of € 1,152 million (2013 adjusted:€ 1,149 million) and the current portion of other long-term
financial assets of € 167 million (2013 adjusted: € 132 million)

encompass other loans in the amount of € 876 million and€ 767 million (adjusted) as of 31 December 2014 and 2013, 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).
Loans from aircraft ﬁnancing are provided to customers to ﬁnancethe 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

2014(In € million)

Outstanding gross amount of loans to customers

605

478

Accumulated impairment

(179)

(156)

Total net book value of loans

426

322

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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2.3 Notes to the Consolidated Statements of Financial Position

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

2014

2013(1)Minimum lease payments receivables

21

212

Unearned finance income

(4)

(17)

Accumulated impairment

0(3)

Total net book value of finance lease receivables

17

192

(In € million)

2(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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

not later than 2015

3

later than 2015 and not later than 201912

later than 2019

6

Total

21

18. Inventories
Inventories at 31 December 2014 and 2013 consist of the following:
31 December

2014(In € million)

2013(1)

Raw materials and manufacturing supplies

2,717

2,575

Work in progress

17,255

16,070Finished goods and parts for resale

2,196

2,049

Advance payments to suppliers

Total

3,187

3,329

25,35524,023(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

The increase in work in progress of € +1,185 million is mainly driven
by Airbus programmes, partly offset by Airbus Helicopters andAirbus Defence and Space programmes. Raw materials werebuilt-up at Airbus and at Airbus Defence and Space. Finishedgoods and parts for resale increased at Airbus.
The ﬁ nished goods and parts for resale before write down to
net realisable value amount to € 2,964 million in 2014 (2013adjusted: € 2,733 million) and work in progress before write
down to net realisable value amounts to € 21,667 million (2013adjusted: € 19,032 million). Write downs for inventories arerecorded when it becomes probable that total estimated contract
costs will exceed total contract revenues. In 2014, write downsof inventories in the amount of € -501 million (2013 adjusted:€ -374 million) are recognised in cost of sales, whereas reversal ofwrite downs amounts to € 160 million (2013 adjusted: € 62 million).
At 31 December 2014 € 5,563 million of work in progress and€ 1,706 million of ﬁnished goods and parts for resale were carriedat 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 2014 and 2013 consist of the following:
31 December(In € million)

2014

2013(1)

Receivables from sales of goods and services

7,087

6,942

Allowance for doubtful accounts

(289)

(314)

Total

6,798

6,628

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

The trade receivables increase by € +170 million mainly caused by
Airbus Helicopters and Airbus, partly compensated by a decreaseat Airbus Defence and Space.
Trade receivables are classified as current assets. As of
31 December 2014 and 2013 (adjusted), respectively, € 2,224 millionand € 1,357 million of trade receivables are not expected to becollected within one year.
In application of the percentage of completion (PoC) method,
as of 31 December 2014 an amount of € 1,941 million (in 2013adjusted: € 2,366 million) for construction contracts is included in
the trade receivables net of related advance payments received.
The aggregate amount of costs incurred and recognised profits(less recognised losses) to date amounts to € 68,543 million (in2013 adjusted: € 63,029 million).

The gross amount due from customers for construction work
amounts to € 3,828 million (in 2013 adjusted: € 4,690 million)
and relates to construction contracts where incurred contract
costs plus recognised proﬁts less the sum of recognised losses
exceed progress billings. Due to the nature of certain contracts
and the respective recognition of revenues, these incurred costs
also include associated work in progress and respective contract
losses.
The gross amount due to customers amounts to € 2,535 million(in 2013: € 1,030 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)

2014

2013

Allowance balance at 1 January(1)

(314)

(320)

Foreign currency translation adjustment(1)

1

Utilisations / disposals

34

25(Additions)

31 December(1)

(8)

(20)

(289)

(314)

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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 € 4,917 million (in 2013 adjusted: € 4,933 million).

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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 2014 and 2013 consist of the following:
31 December(In € million)

2014

2013

502

1,993

2

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

84

83

Total

586

2,076

208

716

582

593

28

2

Current other financial assets
Positive fair values of derivative financial instruments(1)Receivables from related companies

(1)

Loans
Others346

280

Total(1)

1,164

1,591

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

21. Other Assets
Other assets at 31 December 2014 and 2013 consist of the following:
31 December(In € million)

2014

2013

Non-current other assets
Prepaid expenses

1,603

1,480

Others(1)

219

171

(1)

1,822

1,651

1,371

1,082

487

429

Total

Current other assets
Value added tax claims(1)Prepaid expenses(1)
(1)

531

449

Total(1)

2,389

1,960

Others(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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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 € 9,172 million and€ 6,883 million (adjusted) as of 31 December 2014 and 2013,
respectively. The security portfolio contains a non-current portionof available-for-sale-securities of € 5,985 million (in 2013 adjusted:€ 4,294 million) and securities designated at fair value through proﬁt
and loss of € 4 million (in 2013: € 4 million) as well as a current
portion of available-for-sale-securities of € 3,183 million (in 2013adjusted: € 2,585 million).
Included in the securities portfolio as of 31 December 2014
and 2013, respectively, are corporate and government bonds

bearing either ﬁxed rate coupons (€ 8,666 million nominal value;comparably in 2013: € 6,374 million) or ﬂ oating rate coupons(€ 250 million nominal value; comparably in 2013: € 387 million)
and foreign currency Funds of Hedge Funds (€ 8 million nominal
value; 2013: € 8 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 2014, including accrued coupon interest, was€ 0 million (2013: € 613 million).

23. Total Equitya) Equity Attributable to Equity Owners of the Parent
The following table shows the development of the number of shares outstanding:(In number of shares)

Issued as at 1 January
Issued for ESOP2013

783,157,635

827,367,945

0

2,113,245

Issued for exercised options

1,871,419

6,873,677

Cancelled(248,469)(53,197,232)

Issued as at 31 December

784,780,585

783,157,635

Treasury shares as at 31 December(431,832)(2,835,121)

Outstanding as at 31 December

784,348,753

780,322,514

Airbus Group’s shares are exclusively ordinary shares witha par value of € 1.00. The authorised share capital consists of
3,000,000,000 shares.
On 27 May 2014, the Shareholders’ General Meeting of Airbus
Group delegated the authorisation to the Board of Directors to
issue shares and to grant rights to subscribe for shares in the
Company’s share capital for the purpose of employee shareownership plans and share related Long-Term Incentive Plans(such as stock option, performance and restricted share plans),
provided that such powers shall be limited to an aggregate of 0.2%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 Annual General Meeting to be held in 2015. The
mentioned powers include the granting of rights to subscribe forshares 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 distributable reserves. However, such powers shall notextend to issuing shares or granting rights to subscribe for shares(i) if there is no preferential subscription right (by virtue of Dutch
law, or because it has been excluded by means of a resolutionof the competent corporate body) and (ii) for an aggregate issue
price in excess of € 500 million per share issuance.

60

2014

Furthermore, the Shareholders’ General Meeting authorised theBoard of Directors to issue shares and to grant rights to subscribe
for shares in the Company’s share capital for the purpose offunding the Company and its Group companies, provided thatsuch powers shall be limited to an aggregate of 0.3% of theCompany’s authorised capital from time to time and to limit or
exclude preferential subscription rights, in both cases for a period
expiring at the Annual General Meeting to be held in 2015. The
mentioned powers include the issue of ﬁ nancial instruments,
including but not limited to convertible bonds, which instruments
may grant the holders thereof rights to acquire shares in the capitalof the Company, exercisable at such time as may be determinedby the ﬁnancial instrument, and the issue of shares to be paid up
from freely distributable reserves. However, such powers shall notextend to issuing shares or granting rights to subscribe for shares(i) if there is no preferential subscription right (by virtue of Dutch
law, or because it has been excluded by means of a resolutionof the competent corporate body) and (ii) for an aggregate issue
price in excess of € 500 million per share issuance.
The Shareholders’ General Meeting on 27 May 2014 renewed
the authorisation given to the Board of Directors for a new periodof 18 months from the date of the Annual General Meeting torepurchase shares of the Company, by any means, including
derivative products, on any stock exchange or otherwise, as long

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Positionas, 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 29 May 2013 and (ii) is in addition, and without prejudice, to therepurchase authorisation granted by the Extraordinary General
Meeting held on 27 March 2013.
On 27 May 2014, the Shareholders’ General Meeting decided
to add the net proﬁt of the ﬁscal year 2013 of € 1,465 million toretained earnings. It also decided to distribute a gross amount of€ 0.75 per share, which was paid on 3 June 2014. For the ﬁscal year

2014, the Group’s Board of Directors proposes a cash distribution
payment of € 1.20 per share.
Capital stock comprises the nominal amount of shares outstanding.
The addition to capital stock represents the contribution for exercised
options of € 1,871,419 (in 2013: € 6,873,677) in compliance with theimplemented stock option plans and by employees of € 0 million(in 2013: € 2,113,245) under the Employee Stock Ownership Plans.
Share premium mainly results from contributions in kind in thecourse of the creation of Airbus Group, cash contributions from theInitial Public Offering, capital increases and reductions due to theissuance and cancellation of shares as well as cash distributions to
Airbus Group N.V. shareholders. In 2014, € 31 million are reclassiﬁed
from currency translation adjustments to proﬁt or loss. Treasury
shares represent the amount paid for own shares held in treasury.

2b) Non-Controlling Interests
The non-controlling interests (NCI) from non-wholly owned subsidiaries amount to € 18 million as of 31 December 2014 (in 2013 adjusted:€ 42 million). These non-controlling interests do not have a material interest in Airbus Group’s activities and cash ﬂows.
Subsidiaries with NCI that are material to their stand-alone ﬁnancial information are:Principal place of business

Elbe
Flugzeugwerke GmbHGEW Technnologies(Pty) Ltd.

AlestisAerospace S.L.

PFW
Aerospace GmbH

Dresden (Germany)

Pretoria (South Africa)

La Rinconada (Spain)

Speyer (Germany)

Ownership interest held by NCI

2014

2013

2014

2013

2014

2013

2014

2013

35%

35%

25%

25%

38.84%

N/A

25.10%

25.10%

NCI (in € million)

21

26

11

10

(25)

N/A

(21)

(8)

Profit (loss) allocated to NCI (in € million)

2

1

1

1

(10)

N/A

1

1

24. Capital Management
The Group seeks to maintain a strong ﬁnancial proﬁle to safeguard
its going concern, ﬁ nancial ﬂ exibility as well as shareholders’,
credit investors’ and other stakeholders’ conﬁdence in the Group.
Consequently, operating liquidity is of great importance.
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 the Group to contain its cost of capital which positively
impacts its stakeholder value (entity value). Next to other also nonﬁnancial parameters, the credit rating is based on factors suchas, cash ﬂow ratios, proﬁtability and liquidity ratios. The Group
monitors these ratios to keep them in a range compatible with astrong rating.
Airbus Group’s long-term rating with Standard & Poor’s stands at
A with a stable outlook after an upgrade in September 2013 from
A-. The Group’s short-term rating with Standard & Poor’s stands
at A1 and reﬂects the Group’s Exceptional liquidity.
Airbus Group’s long-term rating with Moody’s Investors Services
currently stands at A2. It is a Government Related Issuer (GRI) rating
and includes a notch up from the Baseline Credit Assessment (BCA)
that stands at A3. This notch up reﬂects a moderate probability of
implicit support from France and Germany.

The Group’s long-term unsolicited rating with Fitch Ratings stands
at A- with a stable outlook and was upgraded from BBB+ in
October 2013.
The Group’s stand-alone ratings mainly reﬂect improving credit
metrics, the competitive position and strong backlog providing
revenue visibility, key progresses made on the A350 XWB
programme and Management’s strong focus towards proﬁtability
and cash generation enhancement as well as the structural
currency risk.
In accordance with its conservative ﬁnancial policy, a strong rating
is key to maintain a wide array of funding sources at attractive
conditions, increase hedging capacity and strengthen the Group’s
position as a solid counterparty for its customers and suppliers.
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:the deﬁnition of ﬁnancial returns;
the deﬁnition of the Company’s capital base; and■the measurement of value creation derived from the two above.
■■

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

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 WACC. A ﬁve year plan for avalue creation ambition is constructed annually, and is composedof (1) RoCE, (2) EBIT pre-goodwill impairment and exceptionals,
and (3) Free Cash Flow, which is deﬁned as Cash provided byoperating activities and Cash used for investing activities less
Change of securities, Contribution to plan assets for pensions andrealised Treasury swaps. The Company’s long-term aspiration is toreach the ﬁrst quartile of RoCE performance among our aerospaceand defence peers.
The Group also monitors the level of dividends paid to its
shareholders.
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)

2014

2013(1)

Provision for retirement plans (see Note 25b)

7,567

5,809

Provision for deferred compensation (see Note 25a)

683

460

Retirement plans and similar obligations

8,250

6,269

Other provisions (see Note 25c)

7,862

8,557

Total

16,112

14,826

Thereof non-current portion

10,4009,604

Thereof current portion

5,712

5,222

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

As of 31 December 2014 and 2013, respectively, € 7,864 million and € 5,866 million (adjusted) of retirement plans and similar obligationsand € 2,536 million and € 3,738 million (adjusted) 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(In € million)

Defined benefit obligations as of 1 January(1)

2014

2013

529

430

(1)

Service cost

85

53

Interest cost(1)18

15Remeasurements: Actuarial and losses arising■from changes in financial assumptions

121

10

■

from changes in experience adjustments

6

29

(12)

(6)

Transfer and change in consolidation(1)Benefits paid

(3)

(2)

Defined benefit obligations as of 31 December(1)

744

529

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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2.3 Notes to the Consolidated Statements of Financial Position

CHANGE IN PLAN ASSETS

2014

2013

74

0

Additions (Reclassification)

3

73

Interest income from plan assets

32(In € million)

Fair value of plan assets as of 1 January

1

(1)

81

74

(In € million)

2014

2013

Provision(1)

683

460

Remeasurement of plan assets

Fair value of plan assets as of 31 December

2

RECOGNISED AS

Other non-current and current assets

Total(1)

20

5

663

455

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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.
In France — The French pension system is operated on a “pay as
you go” 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.
In Germany — The Group has a pension plan (P3) for executive
and non-executive employees in place. Under this plan, theemployer provides contributions for the services rendered by theemployees, which are dependent on their salaries in the respective
service period. These contributions are converted into components
which become part of the accrued pension liability at the end of
the year. Total beneﬁts are calculated as a career average over theentire period of service. Certain employees that are not covered bythis 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.
In the United Kingdom — The Airbus Group UK Pension Scheme
was implemented by Airbus Defence and Space Ltd, Stevenage(UK) as the principal employer. This plan comprises all eligible
employees of Airbus Defence and Space 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 relate to Airbus Defence and Space 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 Act part 6 2004, which is to havesufﬁcient and appropriate assets to cover the Scheme’s obligations.
Since 1 November 2013, this plan is generally closed for new
joiners, who participate in a separate deﬁned contribution plan.
Moreover, the Group participates in the UK in several funded trusteeadministered pension plans for both executive and non-executive
employees with BAE Systems being the principal employer. These
plans qualify as multi-employer deﬁned beneﬁt plans under IAS 19“Employee Beneﬁts”. The Group’s most signiﬁcant investments
in terms of employees participating in these BAE Systems UK
pension plans is Airbus Operations Ltd (before the application of
IFRS 11: Airbus Operations Ltd and MBDA UK Ltd). Participating
Airbus Operations Ltd employees have continued to remain
Members in the BAE Systems UK pension plans due to the UK
pension agreement between the Group and BAE Systems and achange in UK pensions legislation enacted in April 2006.

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

Based on the funding situation of the respective pension schemes,
the pension plan trustees determine the contribution rates to be paidby the participating employers to adequately fund the schemes.
The different UK pension plans in which the Group investments
participate are currently underfunded. BAE Systems has agreed
with the trustees various measures designed to make good theunderfunding. These include (i) regular contribution payments for
active employees well above such which would prevail for fundedplans and (ii) extra employers’ contributions.
Due to the contractual arrangements between the Group and
BAE Systems, Airbus Group’s contributions in respect of its
investments for the most significant pension scheme (Main
Scheme) were capped until July 2011 for Airbus Operations Ltd.
Contributions exceeding the respective capped amounts were
paid by BAE Systems. Even after the expiry of the contribution
cap the unique funding arrangements between BAE Systems andthe Group create a situation for the Group different from common
UK multi-employer plans with special regulations limiting regularcontributions that have to be paid by Airbus Operations Ltd torates applicable to all participating employers.
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 the reporting date,taking into account the impact of the capped contributions aswell as future extra contributions agreed by BAE Systems with
the Trustees. Therefore, the Group accounts for its participationin BAE Systems’ UK deﬁned beneﬁt schemes under the deﬁned
beneﬁt accounting approach in accordance with IAS 19.
In 2014, the share of Airbus in BAE Systems’ main schemesamounts to 19.65% (in 2013: 19.45%). 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 thediscount rate derived from AA-rated corporate bonds. If the actual
return rate of plan assets is lower than the applied discount rate,
the net deﬁned beneﬁt liability increases accordingly. Moreover,the market values of the plan assets are subject to volatility, which
also impacts 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 returns ofcorporate bonds will continue, the deﬁned beneﬁt obligation willfurther increase in future periods, which can only be offset partiallyby the positive development of market values of those corporate
bonds included in plan assets. Generally, the pension obligationis 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.
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 as of 31 December
are as follows:
Pension plans inGermany

Assumptions in %

64

2014

France

2013

UK

2014

2013

2014

Multi-employer (UK)

2013

2014

2013

Discount rate

1.9

3.6

2.1

3.4

3.8

4.6

3.6

4.5

Rate of compensation increase

3.25

3.25

2.5

3.1

3.0

3.5

3.2

3.0

Rate of pension payment increase

1.7

2.0

- / 2.0- / 2.0

2.8

3.0

2.3-3.2

1.9-3.7

Inflation rate

1.7

2.0

1.7

2.0

2.9

3.2

3.2

3.4

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

For Germany and France, the Group derives the discountrate used to determine the defined benefit obligation fromyields on high quality corporate bonds with an AA rating. The
determination of the discount rate is based on the iBoxx€
Corporates AA bond data and uses the granularity of single
bond data in order to receive more market information from thegiven bond index. The discount rate for the estimated durationof the respective pension plan is then extrapolated along theyield curve. In the UK it is determined with reference to the fullyield curve of AA-rated sterling-denominated corporate bondsof varying maturities. The salary increase rates are based onlong-term expectations of the respective employers, deviatedfrom the assumed inflation rate and adjusted by promotionalor productivity scales.

Rates for pension payment increases are deviated from therespective inﬂation rate for the plan.
Inﬂ ation rate for German plans corresponds to the expected
increase in cost of living. In the UK, the inﬂ ation assumptions
are derived by reference to the difference between then yields
on index-linked and ﬁ xed-interest long-term government bonds.
For the calculation of the German pension obligation, the “2005G” mortality tables (generation tables) as developed by Prof.
Dr. Klaus Heubeck are applied. For the UK schemes, the SelfAdministered Pensions S1 mortality tables based on year of birth(as published by the Institute of Actuaries) is used in conjunction
with the results of an investigation into the actual mortality
experience of scheme Members. In France, INSEE (Institute forFrench Statistics) tables are applied.

2

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 2013(1)Pension plansof the Group

Share of multiemployer plan in UK

Total

8,456

3,343

11,799(1)Service cost

275

60

335

Interest cost(1)

305

141

446

Curtailments

(5)

0

(5)

Remeasurements: Actuarial and losses arising■from changes in demographic assumptions

1

0

1

■

from changes in financial assumptions(1)

15

85

100

■

from changes in experience adjustments(1)

118

12

130

Change in consolidation, transfers and others(1)

(13)

4

(9)

(316)

(118)

(434)

(14)

(67)

(81)

8,822

3,460

12,282

Benefits paid

(1)

Foreign currency translation adjustment(1)Defined benefit obligations as of 31 December 2013 / 1 January 2014(1)Service cost

288

63

351

Interest cost

309

160

469

Settlements

(143)

0

(143)

Remeasurements: Actuarial (gains) and losses arising■from changes in demographic assumptions

161

65

226

■

from changes in financial assumptions

1,370

584

1,954

■

from changes in experience adjustments

165

(134)

31

Change in consolidation, transfers and others

(77)

4

(73)

Benefits paid

(323)

(129)

(452)

53

264

317

10,625

4,337

14,962Foreign currency translation adjustment

Defined benefit obligations as of 31 December 2014
(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

On 1 April 2014, Dutch Space B.V., Leiden (Netherlands)
settled its own pension scheme and transferred its obligation
and related plan assets to the pension scheme of the industry
sector “Electrotechnical and Metal” as managed by its pension
fund PME. Considering an additional payment of € 2 million, thesettlement gain amounted to € 25 million. The Company pays

a yearly premium to the PME without any further obligation for
additional contributions. The pension scheme of the PME qualiﬁes
as a deﬁned contribution plan.
The weighted average duration of the deﬁned beneﬁt obligation
for retirement plans and deferred compensation is 15 years at
31 December 2014 (31 December 2013: 15 years).

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2.3 Notes to the Consolidated Statements of Financial Position

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 2014 unless otherwise noted):
ActiveDeferredPensioner

Germany

46%

6%

48%

France

99%

1%

0%

UK(1)

69%

12%

19%

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

32%

19%

49%

(1) As of 5 April 2013.
(2) As of 31 March 2014.

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 2014:
Change in actuarial assumptions

Impact on defined benefit obligations
Change as of 31 December

2014

2013(1)

15,706

12,812

Increase by 0.5%-point(1,333)(840)

Decrease by 0.5%-point

1,416

834

Present value of the obligation
Discount rate

Salary growthPension growth

Increase by 0.25%-point

356

213

Decrease by 0.25%-point

(457)

(214)

Increase by 0.25%-point

345

237

Decrease by 0.25%-point

(452)

(237)

Life expectancy

Increase by 1 year

421

296

Reduction by 1 year

(537)

(299)

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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.

66

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.

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

The development of plan assets is as follows:
CHANGE IN PLAN ASSETS(In € million)
Fair value of plan assets as of 1 January 2013

Pension plansof the Group

Share of multiemployer plan in UK

Total

3,602

2,497

6,099

138

107

245

(1)

Interest income from plan assets(1)Remeasurement of plan assets(1)

Contributions by employer(1)Contributions by other plan participants
Transfers
Benefits paid(1)Foreign currency translation adjustments(1)Fair value of plan assets as of 31 December 2013 / 1 January 2014(1)

15

176

191

138

88

226

7

4

11

2

0

2

(124)

(119)

(243)

(10)

(48)

(58)

3,768

2,705

6,473

Interest income from plan assets

144

127

271

Remeasurement of plan assets

140

162

302

Contributions by employer

372

90

462

Contributions by other plan participants

8

4

12

Settlements

(116)

0

(116)

Benefits paid

(130)

(129)

(259)

Foreign currency translation adjustments

Fair value of plan assets as of 31 December 2014

51

199

250

4,237

3,158

7,395

2

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

In 2014, contributions in the amount of € 372 million (2013: € 138 million) are made into the pension plans of the Group, mainly relating
to the relief fund in Germany with € 50 million (2013: € 74 million), the Airbus Group UK scheme with € 50 million (2013: € 49 million) andthe CTA with € 265 million (2013: € 10 million).
Contributions of approximately € 200 million are expected to be made in 2015.
The fair value of the plan assets for retirement plans and deferred compensation can be allocated to the following classes:
31 December 2014

Quotedprices(In € million)

31 December 2013

Unquoted
prices

Total

QuotedpricesUnquoted
prices

Total

Equity securities
Europe(1)

1,086

0

1,086

1,195

0

1,195

Rest of the world

102

0

102

569

0

569

Emerging markets

248

0

248

256

0

256

1,452

0

1,452

594

0

594

2,289

0

2,289

1,317

0

1,317

1,317

0

1,317

1,575

0

1,575

0

0

0

60

0

60

310

15

325

237

19

256

Global(1)

Bonds
Corporates(1)Governments(1)

CoveredPooled Investment Vehicles(1)Commodities

176

0

176

167

0

167

Hedge Funds

121

0

121

86

0

86

Derivatives

0

(47)

(47)

6

(6)

0

(1)

346

5

351

257

5

262

197

0

197

252

0

252

2

(143)

(141)

41

(83)

(42)

7,646

(170)

7,476

6,612

(65)

6,547

Property

Cash and Money Market Funds(1)Others(1)(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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2.3 Notes to the Consolidated Statements of Financial Position

As a rule, quoted prices are available on active markets.

overall level of assets. A large portion of assets in 2014 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 majority of funded plans apply 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 the

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

Pension plans of the Group(In € million)

Defined benefit obligation(1)

Germany

FranceUK

OthersShare of multiemployer
plan in the UK(1)

Total

6,637

1,352

691

142

3,460

12,282

Plan assets(1)

2,997

17

644

110

2,705

6,473

Recognised in the statements of financial
position as of 31 December 2013(1)

3,640

1,335

47

32

755

5,809

Defined benefit obligation

8,144

1,561

909

11

4,337

14,962

Plan assets

3,392

17

828

0

3,158

7,395

Recognised in the statements of financial
position as of 31 December 2014

4,752

1,544

81

11

1,179

7,567

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

The movements during the year are as follows:

Balance at
31 December
2013(1)
5,809

Contribution(employer andService andother plannet interest
Remeaparticipants)
cost surements Settlement
549

1,909

(27)

(474)

Foreign
Change incurrency
consolidation,translation
Benefits transfers andothers adjustments
paid
(193)

(73)

Balance at
31 December
2014

67

7,567

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

The components of the net periodic pension cost, included in “Proﬁt before ﬁnance costs and income taxes”, are as follows:2014

2013(1)Service cost

351

335

Interest cost

469

446

Interest income

(271)

(245)

Net periodic pension cost

549

536

(In € million)(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Employer’s contribution to state and private pension plans, mainly in Germany and France, are to be considered as deﬁned contributionplans. Contributions in 2014 amount to € 674 million (in 2013 adjusted: € 671 million).

68

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Notes to the Consolidated Financial Statements (IFRS)
2.3 Notes to the Consolidated Statements of Financial Positionc) Other Provisions
Movements in provisions during the year were as follows:(In € million)

Reclassification /Increase
Change infromBalance atconsolidated
1 January Exchange passage
(1)
group
of time Additions
2014 differences

Used Released

Balance at
31 December
2014

Contract losses

1,780

2

0

823

(1,398)

(249)

(58)

900

Outstanding costs

2,479

47

0

838

146

(895)

(246)

2,369

Aircraft financing risks

671

123

43

3

0

(125)

(28)

687

Personnel charges

954

3

4

329

(3)

(344)

(113)

830

Obligation from services andmaintenance agreements

346

3

7

395

1

(124)

(30)

598

Warranties

559

1

3

110

(6)

(189)

(40)

438

Restructuring measures /pre-retirement part-time work

496

2

7

57

9

(129)

(17)

425

Litigations and claims

154

8

0

19

(5)

(12)

(20)

144

Asset retirement

121

1

3

6

0

0

(1)

130

Other risks and charges

997

18

4

849

(144)

(254)

(129)

1,341

8,557

208

71

3,429

(1,400)(2,321)

(682)

7,862

Total

2

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

In 2014, provision for contract losses mainly includes A350 XWB(€ 627 million). The additions to the contract losses provision
include the net charge of € 551 million for the A400 M.
“Reclassiﬁcation / Change in consolidated group” mainly relates
to offsetting of A400M and A350 XWB contract provisions torespective inventories.
The majority of the addition to provisions for outstanding
costs relates to Airbus Defence and Space (€ 400 million) andcorresponds among others to the Euroﬁghter programme and todiverse tasks to complete on construction contracts, as well as to
Airbus Helicopters (€ 359 million), mainly for the NH90 programme.
The provision for aircraft ﬁnancing risks fully covers, in line with
the Group’s policy for sales ﬁnancing risk, the net exposure toaircraft ﬁnancing of € 69 million (€ 82 million at 31 December 2013adjusted) and asset value risks of € 618 million (€ 589 million at
31 December 2013) related to Airbus and Airbus Helicopters(see Note 33 “Commitments and contingencies”).

Included in provision for obligation from service and maintenanceagreements are costs for the A380 programme related to inservice technical issues identiﬁ ed and with solutions deﬁ ned,
which reﬂ ects the latest facts and circumstances. Airbus iscontractually 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, proﬁ t
or use). However, in view of overall commercial relationships,
contract adjustments may occur, and be considered on a caseby case basis.
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 has issued under its EMTN Programme (EuroMedium Term Note Programme) four currently outstanding euro
denominated bonds. The ﬁrst currently outstanding bond wasissued in September 2003 for a total of € 0.5 billion and matures in
September 2018. It carries a coupon of 5.5% (effective interest rate
5.58%) and was swapped into variable rate of 3M-Euribor +1.72%
in 2005. The second currently outstanding bond was issued inAugust 2009 for a total of € 1 billion. It matures in August 2016
and carries a coupon of 4.625% (effective interest rate 4.68%),
which was swapped into variable rate of 3M-Euribor +1.57%. The
third currently outstanding bond was issued in April 2014 for a
total of € 1 billion and matures in April 2024. It carries a couponof 2.375% (effective interest rate 2.394%). The fourth and lastcurrently outstanding bond was issued in October 2014 for a totalof € 0.5 billion and matures in October 2029. It carries a couponof 2.125% (effective interest rate 2.194%).
Furthermore, on 17 April 2013, the Group placed an inaugural
US$ 1 billion issue on the US 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 calledbillet de trésorerie programme at ﬂoating or ﬁxed interest rates
corresponding to the individual maturities ranging from 1 day

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

to 12 months. The programme has been set up in 2003 with amaximum volume of € 2 billion, increased in 2013 to a maximum
volume of € 3 billion.
In 2004, the EIB (European Investment Bank) granted a longterm loan to the Group in the amount of US$ 421 million andbearing a fixed interest rate of 5.11% (effective interest rate
5.11%). This loan was maturing and has been consequently fully
repaid in August 2014. In January 2011, the Group entered intoa US$ 300 million loan agreement maturing in January 2021 with
the Development Bank of Japan with a variable interest rate of 3
month USD Libor +1.15%. Concurrently, the Group swapped thevariable interest 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 thevariable interest rate into ﬁxed rate of 3.2%. In February 2013,
the Group entered into a US$ 406 million loan agreement with

EIB maturing in February 2020 with a variable interest rate of 3
month USD Libor +0.93%. In December 2014, the Group enteredinto a US$ 627 million loan agreement with the EIB maturing in
December 2024 with a ﬁxed 2.52% interest rate.
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 € 147 million(2013: € 157 million).
Liabilities from ﬁnancial institutions at 31 December 2014 include
no short-term liabilities from securities lending activities (2013:€ 608 million).
Financing liabilities include liabilities connected with sales ﬁnancing
transactions amounting to € 46 million (2013 adjusted: € 50 million),
mainly at variable interest rates.
Non-recourse Airbus ﬁ nancing liabilities (risk is supported byexternal parties) amount to € 46 million (2013 adjusted: € 50 million).
31 December(In € million)

2014

2013

Bonds

3,917

2,340

1,751

1,070

424

232

186

159

0

3

6,278

3,804

thereof due in more than five years: 2,374 (31 December 2013: 780)
Liabilities to financial institutions(1)thereof due in more than five years: 1,225 (31 December 2013: 754)
Loans(1)thereof due in more than five years: 181 (31 December 2013: 30)
Liabilities from finance leases
thereof due in more than five years: 116 (31 December 2013: 97)
Othersthereof due in more than five years: 0 (31 December 2013: 3)
Long-term financing liabilities(1)

Bonds

1

0

Liabilities to financial institutions(1)

22

923

Loans

285

116

Liabilities from finance leases

12

13

(1)

753

774

Short-term financing liabilities (due within one year)(1)

1,073

1,826

Total(1)

7,351

5,630

Others(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Included 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 2014 as follows:(In € million)

70

2015

1,073

2016

1,240

2017

196

2018

723

2019

223

Thereafter

3,896

Total

7,351

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

The aggregate amounts of ﬁnancing liabilities maturing during the next ﬁve years and thereafter are as of 31 December 2013 as follows:(In € million)

2014(1)

1,826

2015(1)

157

(1)

1,222

2017(1)

136

2016

(1)

625

Thereafter

1,664

Total

5,630

2018

2

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

27. Other Financial Liabilities

31 December

2014

2013

European Governments refundable advances(1)

6,020

5,907

Liabilities for derivative financial instruments

3,271

671

631

576

9,922

7,154

(In € million)

Non-current other financial liabilities

OthersTotal(1)Current other financial liabilities
European Governments refundable advances

508

455

Liabilities for derivative financial instruments(1)

2,232

302

Liabilities to related companies

50

52

Others(1)

690

656

3,480

1,465

Total(1)(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Regarding the interest expenses on European Governments
refundable advances see Note 11 “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 € 3,470 million (2013adjusted: € 1,495 million) due within one year and € 4,402 million(2013: € 4,237 million) maturing after more than ﬁve years.

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2.3 Notes to the Consolidated Statements of Financial Position

28. Other Liabilities

31 December(In € million)

2014

2013(1)

12,231

10,203

Non-current other liabilities
Customer advance payments
Others

Total

618

561

12,84910,764

22,17423,723

675

573

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

Total

2,373

2,274

25,222

26,570(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Included in “Other liabilities” are € 24,291 million (2013 adjusted: € 23,172 million) due within one year and € 4,531 million (2013 adjusted:€ 4,295 million) maturing after more than ﬁve years.
Advance payments received relating to construction contracts amount to € 7,840 million (2013 adjusted: € 9,746 million) mainly resulting
from Airbus Defence and Space (€ 6,499 million) and Airbus Helicopters (€ 1,273 million).

29. Trade Liabilities
As of 31 December 2014, trade liabilities amounting to € 280 million (€ 184 million adjusted as of 31 December 2013) mature after morethan one year.

30. Deferred Income

31 December

2014(In € million)

Non-current deferred income

267

237

Current deferred income

1,089

984

Total

1,356

1,221

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

72

2013(1)

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2.4 Notes to the Consolidated Statements of Cash Flows

2.4 Notes to the Consolidated Statementsof Cash Flows
31. Consolidated Statements of Cash Flows2

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

2014

2013

Bank account & petty cash(1)

2,280

2,126

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

3,261

2,933

Short-term securities (available for sale)

1,744

2,130

(1)

4

12

Total cash and cash equivalents(1)

7,289

7,201

Thereof presented as cash and cash equivalents

7,271

7,201

18

0

OthersThereof presented as part of disposal groups classified as held for sale
(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

As of 31 December 2014, bank account and petty cash are mostly
denominated in €, USD and GBP.
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,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.

The following chart provides details on cash ﬂow for acquisitions (resulting in additional assets and liabilities acquired) of subsidiaries,
joint ventures and businesses:(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

2014

2013

(61)

(17)

(61)

(17)

14

1

(47)

(16)

In 2014, the aggregate cash ﬂow for acquisitions, net of cash of € -47 million, relates mainly to the acquisition of Alestis Aerospace S.L.
(€ -22 million) and of Salzburg München Bank AG (€ -21 million).
In 2013, the aggregate cash ﬂow for acquisitions, net of cash of € -16 million relates mainly to the acquisition of Arkoon Network Security
S.A. (€ -15 million).

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2.4 Notes to the Consolidated Statements of Cash Flows(In € million)

2014

2013

Intangible assets, property, plant and equipment

207

4

Financial assets

315

0Inventories

25

0

Trade receivables

21

1

Other assets

29

8Cash and cash equivalents

14

1

Assets611

14Provisions

(22)

(1)

Trade liabilities

(23)

0

Financing liabilities

(542)

(1)

Tax liabilities and other liabilities

(27)

(9)

Liabilities

(614)

(11)

Fair value of total net (liabilities) assets(3)

3Increase in non-controlling interests due to acquisitions

(17)

0

Fair value of net assets acquired

(20)

3

Goodwill arising on acquisitions

54

11

Total consideration

34

14

Gains related to business combinations(1)

0

Consideration

28

0

0

3

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

(14)

(1)

Cash flow for acquisitions, net of cash

47

16

Linked non-controlling interests squeeze out transactions

The following chart provides details on cash ﬂow from disposals (resulting in assets and liabilities disposed) of subsidiaries:
2014(In € million)

Total selling price20

thereof received by cash and cash equivalents

20

Cash and cash equivalents included in the disposed subsidiaries(54)

Cash flow from disposals, net of cash

(34)

The aggregate cash ﬂow from disposals, net of cash, in 2014 of € -34 million, results from the sale of ND Satcom GmbH (€ -24 million)
and Test and Services (€ -10 million).
2014(In € million)

Intangible assets, property, plant and equipment(11)

Financial assets(2)

Inventories(31)

Trade receivables(52)

Other assets(17)

Cash and cash equivalents(54)

Assets(167)

Provisions

57

Trade liabilities

27

Other liabilities

59

Liabilities

143

Book value of net assets(24)

Related disposal of goodwill(5)

Result from disposal of subsidiaries

2

Non-cash effective consideration

7

Less cash and cash equivalents of disposed subsidiaries

54

Cash flow from disposals, net of cash34

In 2013, no disposal had a signiﬁcant impact on the cash ﬂow.

74

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2.5 Other Notes to the Consolidated Financial Statements

2.5 Other Notes to the Consolidated Financial
Statements
32. Litigation and Claims
Airbus 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, Airbus Group is not aware of any material
governmental, legal or arbitration proceedings (including any
such proceedings which are pending or threatened), during aperiod covering at least the previous twelve months which may
have, or have had in the recent past signiﬁcant effects on Airbus
Group N.V.’s or the Group’s ﬁnancial position or proﬁtability.
If the Group concludes that the disclosures relative to contingent
liabilities can be expected to prejudice seriously its position in a
dispute with other parties, the Group limits its disclosures to thenature of the dispute.

WTO
Although Airbus Group is not a party, Airbus Group is supporting
the European Commission in litigation before the WTO. Following
its unilateral withdrawal from the 1992 EU-US Agreement on Tradein Large Civil Aircraft, the US lodged a request on 6 October 2004
to initiate proceedings before the WTO. On the same day, the EUlaunched a parallel WTO case against the US in relation to its
subsidies to Boeing. On 19 December 2014, the European Union
requested WTO consultations on the extension until the end of2040 of subsidies originally granted by the State of Washington
to Boeing and other US aerospace ﬁrms until 2024.
On 1 June 2011, the WTO adopted the Appellate Body’s ﬁnal 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. 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, thematter is now under WTO panel 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, isreached between the parties, the litigation is expected to continue
for several years.

2

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, a French investigating judge decided in
November 2013 to send the case to trial (renvoi devant le tribunal
correctionnel) against seven current and former executives thatexercised their stock options in March 2006 as well as two former
shareholders. On 3 October 2014 the criminal court suspended
the case on the merits and decided to request a preliminary ruling(question prioritaire de constitutionnalité) from the French Supreme
Court on the constitutionality of the French dual prosecution
system (AMF and judicial proceedings). On 17 December 2014,
the French Supreme Court agreed to transmit the constitutional
challenge to the Conseil Constitutionnel who are scheduled tomake their ruling by the end of March 2015. After being directedby the criminal court to correct inaccuracies in the charges, theinvestigating magistrate issued revised charge in January 2015. It
is unlikely that the case will resume before the second half of 2015.

GPT
Prompted by a whistleblower’s allegations, Airbus Group
conducted internal audits and retained PricewaterhouseCoopers(“PwC”) to conduct an independent review relating to GPT Special
Project Management Ltd. (“GPT”), a subsidiary that Airbus Groupacquired in 2007. The allegations called into question a service
contract entered into by GPT prior to its acquisition by Airbus
Group, relating to activities conducted by GPT in Saudi Arabia.
PwC’s report was provided by Airbus Group 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 Group is cooperating
fully with the authorities.

Euroﬁghter Austria
In March 2012, the German public prosecutor, following a request
for assistance by the Austrian public prosecutor, launched a criminal
investigation into alleged bribery, tax evasion and breach of trust
by current and former 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 on the investigation in 2012, Airbus Group retainedlaw ﬁrm Clifford Chance to conduct a fact ﬁnding independent
review. Upon concluding its review, Clifford Chance presented

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2.5 Other Notes to the Consolidated Financial Statements

its fact ﬁnding report to Airbus Group in December 2013. Airbus
Group provided the report to the public prosecutors in Germany.
Airbus Group is cooperating fully with the authorities.

Other Investigations
Following the publication of investigations by the Romanianauthorities relating to the border surveillance project in Romania in
mid-October 2014 Airbus Group conﬁrms that Airbus Defence andSpace GmbH has been informed that also the German prosecutionofﬁce investigates with respect to potential irregularities in relation
to this project, a project in Saudi Arabia and a project of TesatSpacecom GmbH & Co. KG. No legal entity of the Airbus Groupis subject of any accusations.
Public prosecutors in Greece and Germany launched investigations
into a current employee and former ofﬁcers and employees of Atlas
Elektronik GmbH, a joint company of ThyssenKrupp and Airbus
Group, on suspicion of bribing foreign ofﬁcials and tax evasion.
The public prosecutor in Germany has launched an administrative
proceeding for alleged organisational and supervisory shortfalls.
The authorities in Greece have launched civil claims against
Atlas Elektronik GmbH. With the support of its shareholders,the Company is cooperating fully with the authorities and in
consultation with the public prosecutor is assisting the further
clariﬁcation of the matter through its own internal investigation.

Commercial disputes
In May 2013, the Group has been notiﬁed of a commercial dispute
following the decision taken by the Group to cease a partnershipfor sales support activities in some local markets abroad. The
Group believes it has solid grounds to legally object to the alleged
breach of a commercial agreement. However, the consequencesof this dispute and the outcome of the proceedings cannot be
fully assessed at this stage. The arbitration is not expected to becompleted before the end of 2016.
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. Options to resolve the dispute areunder review but eventually it may be decided in the course of
the arbitration.
In July 2013, the Group became the subject of a commercial dispute
following the expiry of a partnership study for winglet devices witha US supplier. The Group believes it has solid grounds to legallyobject to the alleged breach of a commercial non-disclosureagreement. However, the outcome and consequences of thisdispute cannot be assessed at this stage.

33. Commitments and Contingencies
Sales ﬁnancing — With a view to facilitating aircraft sales for
Airbus and Airbus Helicopters, the Group enters into sales
ﬁnancing transactions with selected customers. These transactions
may take the form of operating leases, ﬁnance leases or loans.
Sometimes, group-external investors share in the ﬁnancing andif so, the transactions usually involve the creation of a Structured
Entity (“SE”). Apart from investor interest protection, interposing an
SE offers advantages such as ﬂexibility, bankruptcy remoteness,
liability containment and facilitating sell downs of the aircraft
ﬁnanced. An aircraft ﬁnancing SE is typically funded, on a nonrecourse basis, by a senior lender and one or more providers ofsubordinated ﬁnancing. When Airbus Group acts as investor tosuch SEs it may take the role of the senior lender or the providerof subordinated ﬁnancing. Airbus Group consolidates an aircraft
ﬁnancing SE if it is exposed to the SE’s variable returns and has
the ability to direct the relevant remarketing activities. Otherwise,
it recognises its share in the SE ﬁnancing as a loan from aircraft
ﬁnancing under Other long-term ﬁnancial assets. At 31 December
2014 the carrying amount of its loans from aircraft ﬁ nancing
amounts to € 426 million. This amount also represents the Group’s
maximum exposure to loss from its interest in unconsolidated
aircraft ﬁnancing SEs.
Sales ﬁnancing transactions, including those that are structured
through SEs, are generally collateralised by the underlying aircraft.
Additionally, Airbus and Airbus Helicopters beneﬁt from protective
covenants and from security packages tailored according to theperceived risk and the legal environment. The Group believes that76

the estimated fair value 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 risk-pricing-model, which is applied at every closing toclosely 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 position
either as (i) an operating lease (see Note 14 “Property, plant andequipment”) or (ii) a loan from aircraft ﬁnancing or (iii) a ﬁnancelease receivable (see Note 17 “Other investments and other longterm ﬁnancial assets”) or (iv) inventory. As of 31 December 2014,
related accumulated impairment amounts to € 114 million (2013adjusted: € 134 million) for operating lease, to € 179 million (2013adjusted: € 159 million) for loans and ﬁnance lease receivables and€ 42 million for inventories (2013 adjusted: € 10 million). As part ofprovisions for aircraft ﬁnancing risks € 47 million (2013 adjusted:€ 43 million) are recorded (see Note 25 “Provisions” c).
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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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 2014 as follows:(In € million)

Not later than 201569

Later than 2015 and not later than 2019142

Later than 2019

2

Total

213

Of which commitments where the transaction has been sold to third parties(191)

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

2

22

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)

Total aircraft lease commitments of € 213 million as of 31 December
2014 (2013: € 271 million) arise from aircraft head-leases and are
typically backed by corresponding sublease income from customers
with an amount of € 159 million (2013: € 188 million). A large partof these lease commitments (€ 191 million and € 219 million as of
31 December 2014 and 2013) arises from transactions that weresold down to third parties, which assume liability for the payments.

52

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 € 22 million as of 31 December 2014 (2013adjusted: € 39 million), as part of the provision for aircraft ﬁnancing
risks (see Note 25 “Provisions” c).

As of 31 December 2014 and 2013, the total consolidated – on and off balance sheet – Commercial Aviation Sales Financing Exposure
is as follows (Airbus and Airbus Helicopters):
31 December(In € million)

2014

2013

Total gross exposure

1,184

1,277

Estimated fair value of collateral (aircraft)

(780)

(892)

Net exposure (fully provided for)

404

385

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

2014

2013

Accumulated impairment on operating leases (see Note 14 “Property, plant and equipment”)(1)

114

134

Accumulated impairment on loans from aircraft financing and finance leases(see Note 17 “Other investments and other long-term financial assets”)(1)

179

159

Provisions for aircraft financing risk (on balance sheet) (see Note 25 “Provisions” c)47

43(In € million)

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

42

10

Provisions for aircraft financing risk (commitment off balance sheet) (see Note 25 “Provisions” c)(1)

22

39

404

385

Total provisions / accumulated impairments for sales financing exposure(1)(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

Asset value guarantees — Certain sales contracts may include
the obligation of an asset value guarantee whereby Airbus or Airbus
Helicopters guarantee a portion of the value of an aircraft at a
speciﬁc date after its delivery. Management considers the ﬁnancial
risks associated with such guarantees to be manageable. Threefactors contribute to this assessment: (i) the guarantee only covers
a tranche of the estimated future value of the aircraft, and its level isconsidered prudent in comparison to the estimated future valueof 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 14 “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 2014, the nominal value of asset value guarantees
provided to airlines, that do not exceed the 10% criteria, amounts
to € 861 million (2013: € 871 million), excluding € 146 million (2013:€ 205 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 € 618 million (2013: € 589 million)

78(see Note 25 “Provisions” c). This provision covers a potential
expected shortfall between the estimated value of the aircraftof the date upon which the guarantee can be exercised and thevalue guaranteed on a transaction basis taking counter guarantees
into account.
While backstop commitments to provide ﬁnancing related toorders on Airbus’ backlog are also given, such commitments are
not considered to be part of gross exposure until the ﬁnancing isin place, which occurs when the aircraft is delivered. This is due tothe fact that (i) past experience suggests it is unlikely that all suchproposed ﬁnancings actually will be implemented (although it ispossible that customers not beneﬁting from such commitments
may nevertheless request ﬁnancing assistance ahead of aircraft
delivery), (ii) until the aircraft is delivered, Airbus retain the asset anddo not incur an unusual risk in relation thereto, and (iii) third parties
may participate in the ﬁnancing. In order to mitigate Airbus 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 € 756 million as of 31 December 2014(2013: € 731 million), and relate mainly to procurement operations(e.g. facility leases, car rentals).

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Maturities as of 31 December 2014 are as follows:(In € million)

Not later than 2015

150

Later than 2015 and not later than 2019

347

Later than 2019

259

Total

756

2

The respective 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

34. Information about Financial Instrumentsa) Financial Risk Management
By the nature of its activities, the Group is exposed to a variety
of ﬁnancial risks, as explained below: (i) market risks, especiallyforeign 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 ﬁnancial risk management programme
focuses on mitigating unpredictable ﬁnancial market risks andtheir potential adverse effects on the Group’s operational andﬁnancial performance.
The ﬁnancial risk management of the Group is generally carried out
by the Central Treasury department at Airbus Group 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 treasury committees jointly with
the Group’s Divisions.

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. This hedge portfolio covers to a large
extent the Group’s ﬁrm commitments and highly probable forecast
transactions.
Signiﬁcant parts of Group revenues are denominated in US dollars,
whereas a major portion of its costs are 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 applies
hedge accounting for a signiﬁcant portion of its hedging portfolio.
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 tocover its expected foreign currency exposure. Therefore, as long as
the actual gross foreign currency cash inﬂows (per month) exceed
the portion designated as being hedged, a postponement orcancellation of sales transactions and corresponding cash inﬂows
have no impact on the hedging relationship. Similarly, though toa lesser extent the Group hedges its expected foreign currency
exposure arising from US dollar cash outﬂows in the commercial
aircraft business on a ﬁrst outﬂow basis. For the non-commercial
aircraft business the Group hedges in- and outﬂows in foreign
currencies from ﬁrmly committed or highly probable forecast sales
and purchase 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 ﬂows to be hedged can cover up to 100%of the equivalent of the net US dollar exposure at inception. The
coverage ratio is adjusted to take into account macroeconomic
movements affecting the spot rates and interest rates as well as therobustness of the commercial cycle. As hedging instruments, theGroup primarily uses foreign currency forwards, foreign currency
options, some synthetic forwards and to a minor extent nonderivative ﬁnancial instruments.
In addition, the Group hedges currency risk arising from ﬁnancialtransactions in other currencies than euro, such as fundingtransactions or securities.

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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 of any
substantial party to the contract, principally USD and GBP. Gainsor losses relating to such embedded foreign currency derivatives
are reported in other ﬁnancial result unless the derivatives aredesignated as a hedging instrument.
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 acorresponding liability structure. The remaining net interest rate
exposure is managed through several types of interest rate
derivatives, primarily interest rate swaps and to a lesser extent
interest rate futures contracts, in order to minimise risks andﬁnancial impacts. The vast majority of related interest rate hedges
qualify for hedge accounting as either fair value hedges or cash
ﬂow hedges.
The Group invests in ﬁ nancial instruments such as overnight
deposits, certiﬁcates of deposits, commercial papers, other money
market instruments and short-term as well as mid-term bonds.
For its ﬁnancial instruments portfolio, the Group holds on a regularbasis 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 toﬂuctuations in the prices of commodities used in the supply chain.
The Group manages these risks in the procurement process andto a certain extent uses derivative instruments in order to mitigate
the risks associated with the purchase of raw materials.
Equity Price risk — The Group is to a small extent invested inequity securities mainly for operational reasons. The Group’s
exposure to equity price risk is hence limited. Further the Groupis exposed under its Long-Term Incentive Plans (LTIP) to the risk ofAirbus Group share price increases. The Group limits these risks
through the use of equity derivatives that have been designatedas hedging instruments in a cash ﬂow hedge.
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 value-atrisk (“VaR”). The VaR of a portfolio is the estimated potential loss

80

that will not be exceeded on the portfolio over a speciﬁed periodof time (holding period) from an adverse market movement with a
speciﬁed conﬁdence level. The VaR used by the Group is based
upon a 95% conﬁdence level and assumes a 5-day holding period.
The VaR model used is mainly based on the so called “MonteCarlo-Simulation” method. Deriving the statistical behaviour ofthe markets relevant for the portfolio out of market data from theprevious two years and observed interdependencies between
different markets and prices, the model generates a wide rangeof 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% conﬁdence level does not reﬂect losses that may occur
beyond this level. Even within the model used there is a 5%
statistical probability that losses could exceed the calculated
VaR;■
The use of historical data as a basis for estimating the statisticalbehaviour of the relevant markets and ﬁnally determining thepossible range of future outcomes out of this statistical behaviour
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 2014 and 2013 is as follows:
Total VaR

Equity price VaR

Currency VaR

Commodity price VaRInterest rate VaR

FX hedges for forecast transactions
or firm commitments

1,052

0

1,135

0

122

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

407

401

33

0

32

Finance lease receivables and liabilities,
foreign currency trade payables andreceivables

55

0

19

0

57

Commodity contracts

9

0

2

9

0

(In € million)

31 December 2014

Equity swaps

17

17

0

0

0

Diversification effect

(489)

(17)

(74)

0

(27)

All financial instruments

1,051

401

1,115

9

184

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

2

31 December 2013

Commodity contracts

13

0

1

12

0

Diversification effect

(157)

0

(18)

0

(38)

All financial instruments

617

161

618

12

55

The increase of total VaR compared to 31 December 2013 is mainly
attributable to a strong increase of market volatilities, in particular FX
and equity volatilities in combination with an increased net foreignexchange portfolio in comparison to year end 2013. The Group
uses its derivative instruments entirely for hedging purposes. As
a result, 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. Accordingly,
the VaR of the FX hedging portfolio in the amount of € 1,052 million(2013: € 577 million) cannot be considered as a risk indicator for
the Group in the economic sense.

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 they fall 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 2014 and 2013) inaddition 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.

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

Carrying
amount(1)Contractual
cash flows< 1 year

1 year– 2 years

Non-derivative financial liabilities(18,905)(20,008)(11,625)(1,786)

(586)

(956)

(353)

(4,702)Derivative financial liabilities(5,503)(6,976)(2,293)(1,747)(1,413)

(895)

(543)

(85)

(24,408)(26,984)(13,918)(3,533)(1,999)(1,851)(896)(4,787)(16,582)(17,114)(11,807)(406)(1,438)

(398)

(919)

(2,146)

(973)

(765)

(373)

(305)

(91)

(32)

(11)

47

(17,555)(17,879)(12,180)(711)(1,529)

(430)

(930)

(2,099)(In € million)

2 years– 3 years

3 years– 4 years

4 years More than
– 5 years
5 years

31 December 2014

Total
31 December 2013
Non-derivative financial liabilities(1)Derivative financial liabilities

Total(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

The above table analyses the Group’s ﬁnancial liabilities by relevant
maturity groups based on the period they are remaining on Group
Consolidated Statement of Financial Position to the contractual
maturity date.

in its portfolio between individual counterparties and issuers aswell as between ﬁnancial institutions, corporates and sovereignsin order to avoid an increased concentration of credit risk on only
a few counterparties and issuers.

The amounts disclosed are the contractual undiscounted cash
ﬂows, comprising all outﬂows required to settle a liability such as
repayments and interest payments, if applicable.

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.

Non-derivative ﬁ nancial liabilities included in the table above
comprise financing liabilities and finance lease liabilities aspresented in the tables of Note 34 b) “Carrying amounts and fairvalues of ﬁnancial instruments”. Due to their speciﬁc nature, namely
their risk-sharing features and uncertainty about the repayment
dates, the European Governments refundable advances, whichamount to € 6,528 million at 31 December 2014 (€ 6,362 at
31 December 2013 adjusted) are not included.

Credit Risk
The Group is exposed to credit risk to the extent of non-performanceby either its customers (e.g. airlines) or its counterparts with regard
to ﬁnancial instruments or issuers of ﬁnancial instruments for grosscash investments. However, the Group 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 financial 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 system assigns
maximum exposure lines to counterparts of ﬁnancial transactions
and issuers, taking into account the lowest of their credit ratings
as published by Standard & Poors, Moody’s and Fitch IBCA.
Besides the credit rating, the limit system takes into consideration
fundamental data, as well as sectoral and maturity allocations andfurther qualitative and quantitative criteria, e.g. expected default
frequencies, credit default swap spreads, etc. The credit exposureof the Group is reviewed on a regular basis and the respective
limits are regularly monitored and updated. Further, the Group
constantly aims for maintaining a certain level of diversiﬁcation

82

The ﬁ nancial market environment was mostly stable in 2014
and saw credit spreads return to multi-year record low levels.
This is, however, in Europe at least partly due to the ECB’s very
accommodative monetary policy, which is expected to even further
increase its purchases of ﬁnancial assets, including sovereign
bonds. Despite these measures, economic fundamentals,
especially anaemic global growth, could lead to the resurfacingof ﬁ nancial risks. Further, the Federal Reserve ending its low
interest rate could cause volatility in ﬁnancial markets and cause
chain reactions, e.g in emerging markets. Therefore, adverse
developments for credit and funding markets cannot be excluded
and this could have a number of effects on the Group’s business,
including:continued de-leveraging as well as mergers and bankruptcies ofbanks or other ﬁnancial institutions, resulting in a smaller universeof counterparties and lower availability of credit, which may inturn reduce the availability of bank guarantees needed by theGroup 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 dependingon gains or losses realised on the sale or exchange of ﬁnancial
instruments, impairment charges resulting from revaluations of debt
and equity securities and other investments, interest rates, cash
balances and changes in fair value of derivative 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 tosupport sales, primarily at Airbus and ATR, the Group may agree
to participate in the ﬁnancing of customers, on a case-by-casebasis, directly or through guarantees provided to third parties. In
determining the amount and terms of the ﬁnancing transaction,
Airbus and ATR take into account the airline’s credit rating andeconomic factors reﬂecting the relevant ﬁnancial market conditions,

together with appropriate assumptions as to the anticipated future
value of the ﬁnanced 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) or internal
assessment of customers’ (such as airlines’) creditworthiness by
way of internal risk pricing methods.

2

The following table breaks down the carrying amounts of the Group’s non-cash loans and receivables including the ﬁnance leases
separately showing those that are impaired, renegotiated or past due:(In € million)

2014

2013(1)

Receivables, neither past due nor impaired

6,592

6,479

Not past due following negotiations and not impaired

94

27

Receivables impaired individually

405

351

Receivables not impaired and past due ≤ 3 months

1,173

1,173

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

271

122

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

95

165

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

141

165

Receivables not impaired and past due > 12 months

Total

387

385

9,158

8,867

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

The management believes that the unimpaired amounts that are past due are still collectible in full, based on historic payment behaviour
and analysis of customer credit risk, including underlying customers’ credit ratings if they are available.
At year-end there was no indication that any ﬁnancial assets carried at fair value were impaired.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statementsb) Carrying Amounts and Fair Values of 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.

Airbus Group assigns its ﬁnancial instruments into classes based on their balance sheet category. The following tables present the carrying
amounts and fair values of ﬁnancial instruments by class and by IAS 39 measurement category as of 31 December 2014 and 2013:

Fair Valuefor hedge
relations

Loans andReceivables andFinancial liabilities
at amortised cost

Available
for Sale

31 December 2014

Fair Value throughprofit or loss(In € million)

Held fortrading

Designated

Fair
value

Book
value

Fair
value

Amortised
Cost

Other(3)

Fair
value

Financial
Instruments
Total
Book
Value

Fair
value

AssetsOther investments and otherlong-term financial assets■

Equity investments(1), (2)

0

0

0

617

617

0

0

0

617

617

■

Customer financings(3)

0

0

0

0

0

426

426

17

443

443

■

Other loans

0

0

0

0

0

876

876

0

876

876

Trade receivables

0

0

0

0

0

6,798

6,798

0

6,798

6,798

266

0

444

0

0

0

0

0

710

710

0

0

0

0

0

1,040

1,040

0

1,040

1,040

Other financial assets■

Derivative instruments(6)■Non-derivative instruments

Securities

0

4

0

9,168

9,168

0

0

0

9,172

9,172

Cash and cash equivalents

0

3,261

0

1,744

1,744

2,266

2,266

0

7,271

7,271

266

3,265

444 11,529 11,529

11,406

11,4061726,927

26,927

0

0

0

0

0

(3,918)(4,227)

0(3,918)(4,227)

Total

Liabilities
Financing liabilities■■■

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

0

0

0

0

0

(3,235)(3,291)0(3,235)(3,291)

(4)

0

0

0

0

0

0

0

(198)

(198)

(198)

Derivative instruments(7)

(370)

0

(5,133)

0

0

0

0

0

(5,503)(5,503)

European Governments
refundable advances(5)

0

0

0

0

0

(6,528)(6,528)0(6,528)(6,528)

(137)

0

0

0

0

(1,234)(1,234)0(1,371)(1,371)

0

0

0

0

0

(10,183)(10,183)0(10,183)(10,183)(507)

0(5,133)0

0(25,098)(25,463)(198)(30,936)(31,301)

Finance lease liabilities

Other financial liabilities
■

■

■

Other

Trade liabilities

Total(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 2014, the aggregate carrying amount of these investments was € 409 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 € 6,528 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 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 € -18 million, of which € -7 million is recognised in OCI.
(7) This includes debit value adjustments of € 31 million, of which € 18 million is recognised in OCI.

84

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

31 December 2013(8)

(In € million)

Fair Valuefor hedge
relations

Fair Value throughprofit or loss

Loans andReceivables andFinancial liabilities
at amortised cost

Available
for SaleHeld fortrading

Designated

Fair
value

Book
value

Fair
value

Amortised
Cost

Other

(3)

Fair
value

Financial
Instruments
Total
Book
Value

Fair
value

AssetsOther investments and otherlong-term financial assets■

Equity investments(1), (2)

0

0

0

607

607

0

0

0

607

607

■

Customer financings(3)

0

0

0

0

0

322

322

192

514

514

■

Other loans

0

0

0

0

0

767

767

0

767

767

Trade receivables

0

0

0

0

0

6,628

6,628

0

6,628

6,628

275

0

2,434

0

0

0

0

0

2,709

2,709

2

Other financial assets■

Derivative instruments(6)■Non-derivative instruments

Securities
Cash and cash equivalents

Total

0

0

0

0

0

958

958

0

958

958

0

4

0

6,879

6,879

0

0

0

6,883

6,883

0

2,933

0

2,130

2,130

2,138

2,138

0

7,201

7,201

275

2,937

2,434

9,616

9,616

10,813

10,813

192

26,26726,267

0

0

0

0

0

(2,340)(2,432)0(2,340)(2,432)

Liabilities
Financing liabilities■■■

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

0

0

0

0

0

(3,118)(3,156)0(3,118)(3,156)

Finance lease liabilities(4)

0

0

0

0

0

0

0

(172)

(172)

(172)

(229)

0

(744)

0

0

0

0

0

(973)

(973)
(6,362)Other financial liabilities■■■

Derivative instruments(7)European Governments
refundable advances(5)Other

Trade liabilities

Total

0

0

0

0

0

(6,362)(6,362)0(6,362)

(180)

0

0

0

0

(1,104)(1,104)0(1,284)(1,284)

0

0

0

0

0

(9,668)(9,668)0(9,668)(9,668)

(409)

0

(744)

0

0

(22,592)(22,722)(172)(23,917) (24,047)(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 € 6,362 million (adjusted) are measured at amortised cost. Fair values cannot be reliably measured because their risk sharing
nature and 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 thevarious 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.
(8) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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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.
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 and deferred compensation assets —The fair values of these instruments reﬂect the quoted market priceat the 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.

86

Cash and cash equivalents — Cash and cash equivalents
include cash in hand, cash in banks, checks, ﬁ xed deposits
as well as commercial papers and money market funds. The
carrying amounts reﬂected in the annual accounts are used asreasonable estimates of fair value because of the relatively shortperiod between the origination of the instrument and its maturity
or due date. Fair value of commercial papers is determined bydiscounting future cash ﬂows using appropriate interest rates. The
fair values of money market funds are determined by reference totheir 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 fair values disclosed for ﬁnancial instruments accounted for at amortised cost reﬂect Level 2 input. Otherwise, fair values are
determined mostly based on Level 1 and Level 2 input and to a minor extent on Level 3 input. The following tables present the carrying
amounts of the ﬁnancial instruments held at fair value across the three levels of the fair value hierarchy as of 31 December 2014 and2013, respectively:
31 December 2014

Level 1

Level 2

Level 3Total

2(In € million)

Financial assets measured at fair value
Equity instruments

208

0

0

208

0

708

2

710

Securities

7,784

1,388

0

9,172

Cash equivalents

3,563

1,442

0

5,005

11,555

3,538

2

15,095Derivative instruments

0(5,503)0(5,503)

Other liabilities

0

0

(137)

(137)

0

(5,503)(137)(5,640)Derivative instruments

Total
Financial liabilities measured at fair value

Total

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

Balance at
1 January
2014

Profitor loss

Other
comprehensive
incomePurchases

IssuesSettlements

Reclassification

Balance at
31 December
2014

Commodity swap
agreements

26

(1)

0

0

0

(23)

0

2

Other derivative
instruments

8

0

0

0

0

(8)

0

0

34

(1)

0

0

0

(31)

0

2

(In € million)

Financial assets
Derivative Instruments
■

■

Total

(1)

Financial liabilities
Other liabilities■■

Written put options on
non-controlling interests

(129)

2

0

0

0

0

0

(127)

Earn-out agreements

(51)

38

0

0

0

3

0

(10)

(180)

40

0

0

0

3

0

(137)

Total

(2)

(1) The profit of the period impact attributable to Level 3 Financial assets which are still held by the Group as of 31 December 2014 was a gain of € 1 million.
(2) The profit of the period impact attributable to Level 3 Financial liabilities which are still held by the Group as of 31 December 2014 was a gain of € 24 million.

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

31 December 2013

Level 1

Level 2

Level 3Total

(In € million)

Financial assets measured at fair value
Equity instruments(1)Derivative instruments(1)

248

0

0

248

0

2,675

34

2,709

Securities(1)

6,876

7

0

6,883

Cash equivalents

3,777

1,286

0

5,063

10,901

3,968

34

14,903

Derivative Instruments(1)

0

(973)

0

(973)

Other liabilities

0

0

(180)

(180)

0

(973)

(180)

(1,153)

Total
Financial liabilities measured at fair value

Total(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

The year before, the development of ﬁnancial instruments of Level 3 was as follows:
Total gains or losses in

Balance at
1 January
2013

Profitor loss

Other
comprehensive
incomePurchases

IssuesSettlements

Reclassification

Balance at
31 December
2013

Commodity swap
agreements

41

35

0

0

0

(50)

0

26

Other derivative
instruments

8

(1)

1

0

0

0

0

8

49

34

1

0

0

(50)

0

34

Written put options on
non-controlling interests(1)

0

0

1

0

(101)

3

(32)

(129)

■

Earn-out agreements(2)

0

1

0

0

0

0

(52)

(51)

■

Other

(In € million)

Financial assets
Derivative Instruments
■

■

Total

(3)

Financial liabilities
Other liabilities■

Total(4)

(5)

0

0

0

0

5

0

0

(5)

1

1

0

(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.
(3) The profit of the period impact attributable to Level 3 Financial assets which are still held by the Group as of 31 December 2013 was € 26 million.
(4) The profit of the period impact attributable to Level 3 Financial liabilities which are still held by the Group as of 31 December 2013 was € 1 million.

Financial Assets 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.

88

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 less than € 1 million.

Financial Liabilities classified as Level 3
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.

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

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 WACC used to discount the forecasted cash ﬂows
and the growth rate used to determine the terminal value. WACC
and growth rates as well as operating planning ﬁgures that wereused for the determination of the level 3 fair values are derived
from the input perimeters as applied for the impairment test as
disclosed in Note 13 “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€ 11 million (€ 13 million adjusted). An increase (decrease) in thegrowth rates by 50 basis points increases (decreases) the NCI put
values by € 11 million (€ 9 million adjusted) 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.

2

Financial Assets designated at fair value through profit or loss
The following types of financial assets held at 31 December 2014 and 2013 respectively are designated at fair value through proﬁt or loss:(In € million)

Nominal amount at
initial recognition asof 31 December 2014

Nominal amount at
Fair value as of initial recognition as of
31 December 201431 December 2013

Fair value as of
31 December 2013

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

Total

3,261

3,261

2,933

2,933

8

4

8

4

3,269

3,265

2,941

2,937

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 € 302 million (2013: € 844 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 collateralcontinue to be recognised on the balance sheet and the amountof cash received at the outset of the transaction is separately
recognised as a ﬁnancial liability. The following tables set out, ona counterparty speciﬁc basis, the potential effect of master netting
agreements and collateralised borrowings on the Group’s ﬁnancial
position, separately for ﬁnancial assets and ﬁnancial liabilities thatwere subject to such agreements as of 31 December 2014 and
31 December 2013, respectively.

31 December 2014

(In € million)

Derivative instruments

Gross amountsof recognised
Gross amounts financial assets set
off in the financialof recognised
statements
financial assets
710

0

Net amounts offinancial assets
presented in
the financial
statements
710

31 December 2014

(In € million)

Derivative instruments

Gross amountsof recognised
financial liabilities
5,503

Gross amounts
Net amounts ofof recognised
financial financial liabilities
presented inliabilities set off
the financial
in the financial
statements
statements
0

5,503

31 December 2013(In € million)

Derivative instruments(1)Gross amountsof recognised
Gross amounts financial assets set
off in the financialof recognised
statements
financial assets
2,709

0

Net amounts offinancial assets
presented in
the financial
statements
2,709

31 December 2013(In € million)

Gross amountsof recognised
financial liabilities

Gross amounts
Net amounts ofof recognised
financial financial liabilities
presented inliabilities set off
the financial
in the financial
statements
statements

Related amounts not set
off in the statementof financial position

Financial
instruments

Cashcollateral
received

Net amount

(621)

0

89

Financial
instruments

Cashcollateral
received

Net amount

(621)

0

4,882

Financial
instruments

Cashcollateral
received

Net amount

(953)

(9)

1,747

Financial
instruments

Cashcollateral
received

Net amount

Related amounts not set
off in the statementof financial position

Related amounts not set
off in the statementof financial position

Related amounts not set
off in the statementof financial position

Derivative instruments

973

0

973

(954)

0

19

Security lendingtransactions(1)

608

0

608

(608)

0

0

1,581

0

1,581

(1,562)

0

19

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.

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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 2014

Remaining period

Total

2015

2016

2017

2018

2019

2020

2021

2022+

Net forward sales contracts

19,834

17,852

16,479

9,328

4,556

477

(1,069)(396)

67,061

FX swap contracts

1,274

145

0

0

0

0

0

0

1,419

(In € million)

2

Foreign Exchange Contracts:

Year ended 31 December 2013

Total

Remaining period
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:

The notional amounts of interest rate contracts are as follows:Year ended 31 December 2014

Remaining period(In € million)

2015

2016

2017

2018

2019

Interest rate contracts

833

1,376

30

918

Interest rate future contracts

176

0

0

0

Total
2020

2021

2022+

853

0

1,070

0

5,080

0

0

0

0

176

Please also refer to Note 26 “Financing Liabilities”.
Year ended 31 December 2013

Remaining period

Total(In € million)

2014

2015

2016

2017

2018

2019

2020

2021+

Interest rate contracts

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

Notional amounts of commodity contracts are as follows:Year ended 31 December 2014

Remaining period(In € million)

Commodity contracts

Total

2015

2016

2017

2018

2019+

319

161

105

20

10

Year ended 31 December 2013

Remaining period(In € million)

Commodity contracts

615

Total

2014

2015

2016

2017

2018+

318

164

125

82

6

695

Notional amounts of equity swaps are as follows:Year ended 31 December 2014
(In € million)

Equity derivative contracts

Remaining period

Total

2015

2016

2017

2018

2019+

209

146

75

23

0

453

The Group did not hold any equity derivative contracts at 31 December 2013.

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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 2014 and 2013:31 December 2014

EUR

USD

GBP

6 months

0.13

0.50

0.73

1 year

0.37

0.82

1.02

5 years

0.24

1.77

1.45

10 years

0.70

2.27

1.85

31 December 2013

EUR

USD

GBP

(Interest rate in %)(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

The development of the foreign exchange rate hedging instruments recognised in AOCI as of 31 December 2014 and 2013 is as follows:
Equity attributable to equity
owners of the parent

Non-controllinginterests

Total

1 January 2013(1)

(424)

1

(423)

Unrealised gains and losses from valuations, net of tax

1,235

(3)

1,232

Transferred to profit or loss for the period, net of tax(1)

290

0

290

1,525

(3)

1,522

1,101

(2)

1,099

(4,658)(19)(4,677)(In € million)

Changes in fair values of hedging instruments recorded in AOCI, net of tax(1)

31 December 2013 / 1 January 2014(1)Unrealised gains and losses from valuations, net of tax

247

(1)

246

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

Transferred to profit or loss for the period, net of tax(4,411)(20)(4,431)31 December 2014

(3,310)(22)(3,332)(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

In the year 2014 an amount of € -358 million (in 2013 adjusted: € -425 million) was reclassiﬁed from equity mainly to revenues resulting
from matured cash ﬂow hedges. No material ineffectiveness arising from hedging relationship has been determined.

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

In addition, a gain of € 35 million was recognised in the proﬁt of the period in 2014 (€ 67 million in 2013) on derivatives that were
designated as hedging instruments in a fair value hedge, and a loss of € -34 million (in 2013: € -67 million) attributable to the hedged
risk was recognised in the proﬁt of the period on the corresponding hedged items. Corresponding with its carrying amounts, the fairvalues of each type of derivative ﬁnancial instruments is as follows:2014(In € million)

Foreign currency contracts – cash flow hedges(1)Foreign currency contracts – not designated in a hedge relationship(1)

Interest rate contracts – cash flow hedges

2013

AssetsLiabilities

AssetsLiabilities

327(4,847)

2,309

(634)

154

(103)

126

(20)

0

(15)

2

(13)

Interest rate contracts – fair value hedges(1)

117

(26)

123

(61)

Interest rate contracts – not designated in a hedge relationship

105

(141)

102

(129)

Commodity contracts – cash flow hedges

0

(40)

0

0

Commodity contracts – not designated in a hedge relationship(1)

2

(64)

26

(79)

Equity swaps – cash flow hedges

0

(94)

0

0

Embedded foreign currency derivatives – cash flow hedges

0

(111)

0

(37)

Embedded foreign currency derivatives – not designated in a hedge relationship

5

(62)

21

0

710

(5,503)

2,709

(973)

Total

(1)

2

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

f) Net Gains or Net Losses
The Group’s net gains or net losses recognised in proﬁt or loss in 2014 and 2013 respectively are as follows:
2014

2013

(308)

54

91

1

Available-for-sale financial assets

314

9Loans and receivables(1)

(163)

1

0

(39)

(In € million)

Financial assets or financial liabilities at fair value through profit or loss:
Held for trading(1)Designated on initial recognition(1)

Financial liabilities measured at amortised cost

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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 € 90 million (2013 adjusted: € 12 million) are recognised directly in equity relating to available-for-sale ﬁnancial
assets.

g) Total Interest Income and Total Interest Expenses
In 2014, the total interest income amounts to € 142 million (in 2013 adjusted: € 161 million) for ﬁnancial assets which are not measured atfair value through proﬁt or loss. For ﬁnancial liabilities which are not measured at fair value through proﬁt or loss € -462 million (in 2013adjusted: € -493 million) are recognised as total interest expenses. Both amounts are calculated by using the effective interest method.

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Notes to the Consolidated Financial Statements (IFRS)
2.5 Other Notes to the Consolidated Financial Statementsh) Impairment Losses
The following impairment losses on ﬁnancial assets are recognised in proﬁt or loss in 2014 and 2013 respectively:
2014

2013

Equity instruments

(14)

(27)

Customer financings

(16)

(19)

(In € million)

Other investments and other long-term financial assets

(1)

(17)

(10)

Trade receivables(1)

(28)

(46)

Total(1)

(75)

(102)

Other loans(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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, the Group’s Board of Directors approved stock option
plans in 2006, 2005 and 2004 (see dates below). These plansprovide to the Members of the Executive Committee as well as
to the Group’s senior management the grant of options for thepurchase of the Group’s shares.
For all of the Group’s Stock Option Plans, the granted exercise
price was exceeding the share price at grant date.
In 2014, 2013, 2012, 2011, 2010 and 2009, 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 end of
December 2012 and of LTIP plan 2012 end of February 2013
as well as LTIP 2013 end of February 2014, some Performance

Units granted to the Executive Committee Members have beentransformed to equity-settled plans. The respective grant dates
are for the LTIP 2009-2011 31 December 2012, for LTIP 201228 February 2013 and for LTIP 2013 28 February 2014. The fairvalue at grant date is derived from the closing share price attransformation date, which corresponds to € 29.50 for LTIP 20092011, € 39.70 for LTIP 2012 and € 53.39 for LTIP 2013. 368,707 units
for the LTIP 2009-2011, 75,975 units for the LTIP 2012 and 64,700
units for LTIP 2013 were transformed into shares at the respective
grant dates. These shares are outstanding as of 31 December 2014
(for details please refer to the remuneration section of Note 36“Related party transactions”).
In 2014, the Group decided to hedge the share price risk inherent
in the cash-settled LTIP units by entering in equity swaps whosereference price is based on the Airbus Group share price. To
the extent that LTIP units are hedged, compensation expense
recognised for these units will effectively reﬂect the reference priceﬁxed under the equity swaps.

In 2014, compensation expense for Long-Term Incentive Plans including the effect of the equity swaps amounted to € 156 million (in2013: € 439 million). For the SOPs, expenses were neither recognised in 2014 nor 2013. The fair value of units granted per vesting dateis as follows (LTIP plan 2014):
Expected vesting date

FV of Restricted and Performance Units to be settled in cash(In € per unit granted)

June 2018

37.23

June 201935.18

As of 31 December 2014 provisions of € 314 million (2013: € 473 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 a Forward Pricing Model which is, next to other market data, mainly affected by the share price as of theend of the reporting period (€ 41.35 as of 31 December 2014) and the lifetime of the units.

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

The principal characteristics of the options as at 31 December 2014 are summarised in the table below:
SOP 2004

SOP 2005

SOP 2006

6 May 2003

11 May 2005

4 May 2006

8 October 2004

9 December 2005

18 December 2006

7,777,280

7,981,760

1,747,500

01,729,141

511,570

1,495

1,608

221

Date of Shareholders’ Meeting
Grant date
Number of options granted
Number of options outstanding
Total number of eligible employees
Vesting conditions(1)Expiry date2

50% of options may be exercised after a period of two years (two years and four weeks
for SOP 2004) from the date of grant of the options; 50% of options may be exercised asof the third anniversary of the date of grant of the options (subject to specific provisions containedin the Insider Trading Rules — see “Part 2/3.1.3 Governing Law — Dutch Regulations”)
7 October 2014

Conversion right

8 December 201516 December 2016

One option for one share

Vested(2), (3)

100%

100%

100%

Exercise price€ 24.32€ 33.91€ 25.65

Exercise price conditions

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

Number of exercised options

5,034,613

3,536,793

1,034,750(1) As regards to the SOP 2005, part of the options granted to the Group’s top Executives are performance related.
(2) As regards the SOP 2004, 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.
(3) As regards the SOP 2005, 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.

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

Number of Options

Options granted

Balance at
1 January

Exercised

Forfeited

Balance at
31 December

2013

0

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

1,157,993

2014

0

1,157,993(976,348)(181,645)

0

2013

0

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

2,449,997

2014

0

2,449,997(700,696)(20,160)

1,729,141

2013

0

1,202,000(490,375)(5,500)706,1252014

0706,125(194,375)

0511,750

17,506,540

4,314,115(1,871,419)(201,805)

2,240,891

SOP 2004

SOP 2005

SOP 2006

Total options for all Tranches

The weighted average share price at the date of exercise for share options exercised in 2014 was € 50.06 (2013: € 41.74).

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

The principal characteristics of the Performance and Restricted Units of the LTIPs as at 31 December 2014 are summarised below:
LTIP 2009

LTIP 2010

Grant date 13 November 200910 November 2010

LTIP 2011
9 November 2011

LTIP 2012

LTIP 201313 December 2012 17 December 2013

LTIP 2014(3)

13 November 2014

Performance and Restricted Unit plan
Units

Performance Restricted Performance Restricted Performance Restricted Performance Restricted Performance Restricted Performance Restricted

Numberof units
granted(1), (2)2,697,740

928,660

2,891,540

977,780

2,606,900

880,225

2,119,160

621,980

1,241,020

359,760

1,100,620 292,580

Numberof units
outstanding

00

1,919,982

456,400

2,496,688

841,950

2,065,012

600,740

1,229,660

355,640

1,100,620 292,580

Total
numberof eligible
beneficiaries

1,749

Vesting
conditions

Vesting
dates

Number ofvested units

1,711

1,771

1,797

1,709

1,621

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 case of Performance Units, upon achievement of mid-term business performance.
Vesting schedule is made up of 4 payments (for the LTIP 2014 2 payments) over two years.
25% each:in May 2013;
in November 2013;
in May 2014;
in November 2014.

25% each:in May 2014;
in November 2014;
25% each expected:
in May 2015;
in November 2015.

3,133,644

1,795,100

898,855

467,640

25% each expected:
in May 2015;
in November 2015;
in May 2016;
in November 2016.
2,500

4,375

25% each expected:
in May 2016;
in November 2016;
in May 2017;
in November 2017.
1,000

2,800

25% each expected:
in May 2017;
in November 2017;
in May 2018;
in November 2018.
050% each expected:
in June 2018;
in June 2019.

00(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 toreview 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 (for LTIP 2012), € 92.34(for LTIP 2013) and € 94.40 (for LTIP 2014), which corresponds to 200% of the respective reference share price. Overall, the pay-out for Performance Units is limited to a total amountof 250% of the units originally granted, each valued with the respective reference share price of € 27.83 (for LTIP 2012), € 46.17 (for LTIP 2013) and € 47.45 (for LTIP 2014).
(3) Date, when the vesting conditions were determined.

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The development of the number of units (including units to be provided in shares) is set out below:
Tranches

Number of Units

Units granted
and add. grant

Balance at
1 January

VestedForfeited

Re-evaluation

Balance at
31 December

Performance Units in 2013(1)02,579,920(1,506,438)(42,204)

592,628

1,623,906

Performance Units in 2014

0

1,623,906(1,618,056)(5,850)00

Restricted Units in 2013

0903,820(449,390)(6,880)0447,550

Restricted Units in 2014

0447,550(445,305)(2,245)003,626,400

2,071,456(2,063,361)(8,095)0002,835,240(2,800)(73,800)02,758,640

LTIP 2009

Total units

2

LTIP 2010
Performance Units in 2013(2)0

2,758,640(1,792,300)(37,454)

991,096

1,919,982

Restricted Units in 2013

0947,160(700)(3,400)0943,060

Restricted Units in 2014

0943,060(466,240)(20,420)0456,400

3,869,320

3,701,700(2,258,540)(57,874)

991,096

2,376,382

Performance Units in 2014

Total units(2)

LTIP 2011
Performance Units in 2013(3)14,9002,574,850(2,500)(40,300)

02,532,050

Performance Units in 2014(3)3,050

2,535,100

0(38,412)02,496,688

Restricted Units in 2013(3)2,475

879,600(3,125)(12,325)0864,150

Restricted Units in 2014

0864,150(625)(21,575)

0841,950

3,487,125

3,399,250(625)(59,987)03,338,638

Total units
LTIP 2012
Performance Units in 2013

0

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

0

2,106,160

Performance Units in 2014

0

2,106,160

0(41,148)02,065,012

Restricted Units in 2013

0621,980(2,800)(2,920)0616,260

Restricted Units in 2014

0616,260

0(15,520)0600,740

2,741,140

2,722,420

0(56,668)02,665,752

Total units
LTIP 2013
Performance Units in 2013

1,241,020

0

0

0

0

1,241,020

Performance Units in 2014

01,241,020

0(11,360)01,229,660

Restricted Units in 2013

359,760

0

0

0

0

359,760

Restricted Units in 2014

0359,760

0(4,120)0355,640

1,600,780

1,600,780

0(15,480)01,585,300

Total unitsst(1) As re-evaluation is based on 123% performance achievement for the remaining outstanding Performance Units at 1 vesting.
(2) Re-evaluation is based on 136% performance achievement for the remaining outstanding Performance Units at 1st vesting.
(3) Units granted correspond to additional Performance and Restricted Units granted for the LTIP 2011.

The outstanding units for the LTIP 2014 as at 31 December 2014 correspond to the number of units at grant date.

b) Employee Stock Ownership Plan (ESOP)An ESOP for 2014 was not implemented.
In 2013, the Board of Directors approved an additional ESOP.
Eligible employees were able to purchase a ﬁ xed number ofpreviously unissued shares at fair value (10, 30, 50, 100, 200 or
400 shares). The Group matched each ﬁxed number of shares witha number of free Airbus Group shares based on a determining
ratio (10, 20, 30, 43, 67 and 107 free shares, respectively). During
a lockup period of at least one year or, provided the purchase took
place in the context of a mutual fund (regular saving plan), of ﬁve

years, employees are restricted from selling the shares, but havethe right to receive all dividends paid. Employees who purchased
directly Airbus Group shares have in addition the ability to voteat 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. Investing through the mutual fund
led to a price which corresponds to the average price at the Paris
stock exchange during the 20 days immediately preceding 29 May
2013, resulting in a price of € 42.02. The Group issued and sold

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2.5 Other Notes to the Consolidated Financial Statements

2,113,245 ordinary shares with a nominal value of € 1.00 in total.
Compensation expense (excluding social security contributions)of € 31 million was recognised in connection with ESOP, basedon 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 structureand governance of the Group and to reward all eligible employees

for the recent and future Group performance. Each eligible
employee is granted ten free shares in Airbus Group 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 was recognised forthe free share plan, based on a fair value of € 47.45 at grant date.

36. Related Party Transactions
Related parties — In December 2012 the Board of Directors
announced a Multiparty Agreement, which was subsequently
approved by the shareholders in an Extraordinary General Meetingon 27 March 2013, aimed at normalising and simplifying thegovernance of the Group while securing a shareholding structurethat allows France, Germany and Spain to protect their legitimate
strategic interests. The Completion (“Consummation”) of theMultiparty Agreement occurred on 2 April 2013 and previously
existing shareholder agreements with the French government,

Daimler AG, Lagardère Group and the Spanish government (SEPI)
were terminated. Consequently from this date onwards the Groupno longer considers these former shareholders as related parties
under IAS 24.
The Group has entered into various transactions with related
entities that have all been carried out in the normal course ofbusiness. Transactions with non-consolidated subsidiaries are
immaterial to the Group’s Consolidated Financial Statements.

The following table discloses the related party transactions in 2014 and 2013:

Sales of goods
and services
and otherincomePurchases ofgoods andservices andother expense

Receivables
due as of
31 December

Payablesdue as of
31 December

Other
Liabilities /Loans
received as of
31 December

7

116

3

5

79

2,141

122

1,451

13

601

Total transactions with associates

537

172

30

26

93

Total transactions with joint ventures

2,470

157

265

44

877

(In € million)

2014
Total transactions with associates
Total transactions with joint ventures

2013

The following table discloses the transactions with former related parties as of 31 December 2013:
Sales of goods and services
and other income in 2013

Purchases of goods and services
and other expense in 2013

632

24

Spanish government (SEPI)

7

0

Daimler AG

03(In € million)

French government

Lagardère Group00

Total transactions with shareholder

639

27

Total transactions with French government related entities

31

1,299

As of 31 December 2014, the Group granted guarantees of € 474 million to Air Tanker Group in the UK (2013: € 443 million). The sharesof the Group in Daher-Socata SA and a part of the shares in Dassault Aviation were disposed of during 2014 (for more details, please
see Note 4 “Acquisitions and disposals”). As of 31 December 2013, the Group granted a loan to Daher-Socata SA in the amount of€ 24 million.
For information regarding the funding of the Group’s pension plans, which are considered as related parties, please refer to Note 25“Provisions” b).

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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:
2014

2013

Total

Total

Salaries and other short-term benefits (including bonuses)(2)

23.2

23.1

Post-employment benefit costs(3)

8.7

6.0

Share-based remuneration (“LTIP award”)

16.7

24.3

Termination benefits

4.1

0.0

Other benefits (incl. company cars, insurance)

0.6

0.5

Social Charges

4.9

4.5

58.2

58.4

1.5

1.7

1.5

1.7

59.7

60.1

(In € million)

Executive Committee, incl. Executive Board Member(s)(1)(4)

2

Non-Executive Board Members
Short-term benefits(5)Total expense recognised(1) The Chief Executive Officer was the sole Executive Board Member in office as at 31 December of the respective year.
(2) Amount of bonuses is based on estimated performance achievement as at the balance sheet date and difference between previous year estimation and actual pay-out in the current year.
(3) Aggregated amount of current service and interest costs as well as interest cost on employees’ contributions related to the defined benefit obligation and contributions related todefined contribution plans accounted for during respective fiscal year.
(4) The cash settled share based payment expense includes the associated hedge result.
(5) 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
2014 was € 81.6 million (2013: € 59.4 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 2014 for
Executive Committee Members based on estimated performanceachievement at year end was € 14.9 million (2013: € 12.1 million).
Other benefits include expenses for Executive Committee
Members’ company cars and accident insurance. There were no
outstanding liabilities at 31 December 2014 or 2013 respectively.
The share-based payment expenses result from not yet forfeitedunits granted to the Executive Committee Members under the Airbus
Group Long-Term Incentive Plans (LTIP) which are re-measured tofair value as far as they are cash settled. In 2014, the Members of
the Executive Committee were granted 190,460 Performance Units(2013: 203,000 units); the fair value of these Performance Unitsat grant date was € 9.1 million (2013: € 10.9 million). Fair value ofoutstanding LTIP balances end of 2014 for all Executive Committee
Members was € 18.8 million (2013: € 24.8 million).
In order to strengthen the alignment of Airbus Group top
management with the long-term growth objectives of theCompany, the Board has requested Airbus Group Executive
Committee Members to acquire and to hold in the future Airbus
Group shares with a value equal to the individual 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 Airbus
Group shares but expects Executive Committee Members to use
speciﬁcally gains from Airbus Group LTIP plans to achieve thisgoal 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 authorised 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 and end of February 2014, Executive
Committee Members made the same choice for the 2012 planand 2013 plan respectively. By end of February 2015, Executive
Committee Members will accordingly decide on the split for the2014 LTIP plan. After overall performance assessment of each of
the plans, the 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 the vesting dates of
the respective plan.
Due to the partial conversion of LTIP plans 2009-2011 end of
December 2012 and of LTIP plan 2012 end of February 2013 total
outstanding LTIP liability for Executive Committee Members of€ 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)LTIP 2013(5)Total number of units granted

343,180

413,984

263,500

275,900

203,000

Number of cash-settled units

210,644

263,228

178,085

199,925

138,300

Number of equity-settled units

132,536

150,756

85,41575,97564,700(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 performance achievement of 136% for Performance Units under 2010 LTIP.
(4) Partial conversion of cash settled plan into equity settled plan as at 28 February 2013.
(5) Partial conversion of cash settled plan into equity settled plan as at 28 February 2014.

As all Airbus Group Stock Option Plans (“SOP”) vested before 2012
no related personnel expense was recognised in 2014 or in 2013.

Total Annual Income (deﬁned as Base Salary and Annual Variable
remuneration most recently paid) with respect to applicable local
legal requirements if any.

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.

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.
Furthermore in 2014, the Company recognised € 3.6 million (2013:€ 2.4 million) of high salary taxes for Executive Committee Members
subject to French 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 amountreﬂects the Group’s best estimate of the chargeable amount by
end of 2014.

In 2014 a termination package has been granted to one Executive
Committee Member, the termination indemnity recognised was€ 4.1 million of which € 2.4 million were paid in 2014 and remainder
was outstanding at year end and will be paid in 2015 and 2016.
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 Boardof 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

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

37. 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.

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

Weighted average number of ordinary shares
Basic earnings per share(1)(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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AIRBUS GROUP FINANCIAL STATEMENTS 2014

2014

2013

€ 2,343 million€ 1,473 million

782,962,385

792,466,862€ 2.99€ 1.86

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2.5 Other Notes to the Consolidated Financial Statements

Diluted earnings per share — For the calculation of the diluted
earnings per share, the weighted average number of ordinary sharesis adjusted to assume conversion of all potential ordinary shares.
The Group’s categories of dilutive potential ordinary shares arestock options and share-settled Performance Units for Executive
Committee Members relating to Long-Term Incentive Plans for 2009

Profit for the period attributable to equity owners of the parent (Net income)to 2013. Since in 2014 the average price of Airbus Group shares
exceeded the exercise price of the 6th, 7th and 8th stock option plan
as well as the share-settled Performance Units (in 2013: the 5th,
6th, 7th and the 8th stock option plan), 1,193,364 shares related tostock options (in 2013: 1,660,950 shares) were considered in thecalculation of diluted earnings per share.

(1)

Weighted average number of ordinary shares (diluted)
Diluted earnings per share(1)

2014

2013

€ 2,343 million€ 1,473 million

784,155,749

794,127,812€ 2.99€ 1.852(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

38. Number of Employees
The number of employees at 31 December 2014 is 138,622 as compared to 138,404 at 31 December 2013 (adjusted).

39. Auditor Fees
With reference to Section 2:382a(1) and (2) of the Netherlands Civil Code, the following fees for the ﬁnancial year 2014 have been
charged by KPMG to the Company, its subsidiaries and other consolidated entities:
KPMG
In € thousand

In %Audit process, certification and examination of individual and consolidated accounts

5,812

66.5

Additional tasks(1)

2,344

26.9

Sub-total

8,156

93.4

Legal, tax, employment

573

6.6

Sub-total

573

6.6

8,729

100.0

Audit

Other services as relevant

Total(1) Mainly transaction related work.

In 2014, the Airbus Group was audited by KPMG only. Other audit ﬁrms have audit fees related to audit process, certiﬁcation andexamination of individual and consolidated accounts of € 6 million.

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2.5 Other Notes to the Consolidated Financial Statements

The following fees correspond to the ﬁnancial year 2013:
KPMG

Ernst & Young Accountants LLP

In € thousand

In %In € thousand

In %

5,201

63.6

5,931

68.8

Audit
Audit process, certification and examinationof individual and consolidated accounts
(1)

2,196

26.9

2,123

24.6

7,397

90.5

8,054

93.4

Legal, tax, employment

769

9.4

566

6.6

Information Technology

8

0.1

0

0.0

Additional tasks
Sub-total

Other services as relevant

Sub-total

Total

777

9.5

566

6.6

8,174

100.0

8,620

100.0

(1) Mainly transaction related work.

40. Events after the Reporting Date
Rheinmetall AG – A400M contract
On 18 December 2014, Rheinmetall AG and Airbus Defence andSpace have agreed on the conditions of the transfer of the A400M
Loadmaster Control Contract from Rheinmetall to Cassidian
Airborne Solutions GmbH (CAS). This non material transaction
involves the termination of the service level agreement between
the two companies and allows settling the claims between thecompanies in relation to the A400M application software contract.
The agreements relative to this acquisition have become effective
on 1 January 2015. The overall purchase price of € 58.9 million
was paid on 2 January 2015.

They have engaged in the requisite consultation and approval
procedures with competition authorities, Arianespace and the twoGroup’s works councils. The new organisational structure initiallycomprises 450 people joining Airbus Safran Launchers from Airbus
Defence and Space, Herakles and Snecma as part of phase one.
This structure will be further developed and shall eventually bring
together all Airbus Group and Safran assets relating to launchersand propulsion systems in addition to associated personnel
and shareholdings. The Company’s head ofﬁ ce is in Issy-lesMoulineaux, near Paris (France).

Airbus Safran Launchers

Electronics Oostkamp

On 14 January 2015, Airbus Group and Safran have completed
the ﬁrst phase of the integration process enabling Airbus Safran
Launchers to become operational (see Note 4 “Acquisitions anddisposals”).

On 21 January 2015, Airbus Group and Parter Capital GroupAG signed a ﬁnal share purchase agreement to transfer 100% of
the shares of Cassidian Belgium N.V. for a total consideration of€ 3.1 million (see Note 4 “Acquisitions and disposals”).

These Consolidated Financial Statements have been authorised for issuance by the Board of Directors on 26 February 2015.

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2.6 Appendix “Information on Principal Investments” – Consolidation Scope

2.6 Appendix “Information on Principal
Investments” – Consolidation Scope
2014

%

2013

%

Company

Head officeF

100.00F

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

100.00F

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

100.00F

100.00Airbus (Beijing) Engineering Centre Company Ltd

Beijing (China)
Beijing (China)

2

AirbusF

100.00F

100.00Airbus (China) Enterprise Management& Services Company Ltd

F

100.00F

100.00Airbus (Tianjin) Delivery Center Ltd

Tianjin (China)

E

51.00

E

51.00

Airbus (Tianjin) Final Assembly Company Ltd

Tianjin (China)

E

51.00

E

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)
Herndon, VA (USA)F

100.00F

100.00Airbus Americas Customer Services, Inc.

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)F100.00F

100.00Airbus China Ltd, Beijing Representative Office

Beijing (China)F100.00F

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

Toulouse (France)F

100.00F

100.00Airbus Financial Service Unlimited

Dublin (Ireland)

F

100.00F

100.00Airbus Flight Hour Services Ltd

Dublin (Ireland)

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)F

100.00F

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

Pullach i. Isartal (Germany)F

100.00F

100.00Airbus S.A.S.

Blagnac (France)F

100.00F

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

Blagnac (France)

F

58.00

Alestis Aerospace S.L.

La Rinconada (Spain)F

100.00Apsys S.A.

Suresnes (France)

E

50.00

E

50.00

ATR Eastern Support Pte. Ltd

Singapore (Singapore)

E

50.00

E

50.00

ATR G.I.E.

Blagnac (France)

F: Fully consolidated.
E: At equity consolidated.
The stated percentage of ownership relates to Airbus Group N.V.
* Only the parent company is stated in this list.
** Companies consolidated in two different segments.

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2.6 Appendix “Information on Principal Investments” – Consolidation Scope

2014

%

2013

%

Company

Head office

E

50.00

E

50.00

ATR India Customer Support Pte. Ltd

Bangalore (India)

E

50.00

E

50.00

ATR International S.A.S.

Blagnac (France)

E

50.00

E

50.00

ATR North America, Inc.

Washington, VA (USA)

E

50.00

E

50.00

ATR North American Training Center, Inc.

Montreal (Canada)

E

50.00

E

50.00

ATR South African Training Center (Proprietary) Ltd

Illovo (South Africa)

E

50.00

E

50.00

ATR Training Center S.A.R.L.

Blagnac (France)

E

50.00

E

50.00

ATRiam Capital Ltd

Dublin (Ireland)

E

50.00

E

50.00

ATRium Mauritius Ltd

Mauritius Island

F

100.00F

100.00Aviateur Finance Ltd

Dublin (Ireland)

F

100.00F

100.00Aviateur International Ltd

Dublin (Ireland)

F

100.00F

100.00CIMPA GmbH

Hamburg (Germany)F

100.00F

100.00F

100.00F

100.00FF

100.00F

100.00F
F

CIMPA Ltd

Bristol (United Kingdom)

CIMPA PLM

Madrid (Spain)

100.00CIMPA S.A.S.

Blagnac (France)F

100.00Composites Atlantic Ltd

Lunenburg (Canada)F

100.00CTC GmbH

Stade (Germany)

100.00F

100.00EADS ATR S.A.

Colomiers (France)

100.00F

100.00EADS Composites Aquitaine SAS

Salaunes (France)F

100.00F

100.00EADS Maroc Aviation

Casablanca (Morocco)F

100.00F

100.00EADS Real Estate Premium AEROTEC
Augsburg GmbH & Co. KG

Augsburg (Germany)F

100.00F

100.00EADS Sogerma SAS

Rochefort (France)

F

65.00

F

65.00

Elbe Flugzeugwerke GmbH

Dresden (Germany)

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)

E

50.00

E

50.00

Hua-Ou Aviation Support Centre Ltd

Beijing (China)

E

50.00

E

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

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

100.00Sat Air Group S.A.S. (formerly Airbus Invest 11)

Blagnac (France)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

100.00F

100.00SC Premium Aerotec SRL

Brasov (Romania)

F: Fully consolidated.
E: At equity consolidated.
The stated percentage of ownership relates to Airbus Group N.V.
* Only the parent company is stated in this list.
** Companies consolidated in two different segments.

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2014

%

2013

%

Company

Head office

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)

Additionally consolidated are 39 SPEs.
Airbus Helicopters
F

100.00F

100.00AHD Real Estate GmbH & Co. KG

Pullach i. Isartal (Germany)F

100.00F

100.00Airbus Group Australia Pacific (NZ) Pty Limited

Sydney (Australia)

F

100.00F

100.00Airbus Group Australia Pacific Holdings Pty Limited

Bankstown (Australia)

F

100.00F

100.00Airbus Group Australia Pacific Limited

Bankstown (Australia)

F

98.00

F

75.50

Airbus Helicopters (Thailand) Ltd

Bangkok (Thailand)

F

100.00F

100.00Airbus Helicopters Canada Ltd

Fort Erie, ON (Canada)F

100.00F

100.00Airbus Helicopters Chile S.A.

Santiago (Chile)F

100.00F

100.00Airbus Helicopters Composites Pty Limited

Sydney (Australia)

F

100.00F

100.00Airbus Helicopters Deutschland GmbH

Donauwörth (Germany)F

100.00F

100.00Airbus Helicopters España, SA

Madrid (Spain)F

100.00F

100.00Airbus Helicopters Financial Services

Dublin (Ireland)

F

100.00F

100.00Airbus Helicopters Holding SAS

Marignane (France)F

100.00F

100.00Airbus Helicopters Inc.

Grand Prairie, TX (USA)F

100.00F

100.00Airbus Helicopters International Services Limited

Dublin (Ireland)

F

100.00F

100.00Airbus Helicopters Japan Co. Ltd

Tokyo (Japan)

F

100.00F

100.00Airbus Helicopters Korea Ltd

Sacheon-si (South Korea)

F

100.00F

100.00Airbus Helicopters Malaysia SDN. BHD.

Subang Selongor (Malaysia)

F

100.00F

100.00Airbus Helicopters Malaysia Simulation Center SDN. BHD

Subang Selongor (Malaysia)

F

99.99

F

99.99

Airbus Helicopters México Querétaro, S.A. de C.V.

Querétaro (Mexico)F

100.00F

100.00Airbus Helicopters México, S.A. de C.V.

Mexico D.F. (Mexico)F

100.00F

100.00Airbus Helicopters RG Japan Co. Ltd

Tokyo (Japan)

F

95.00

F

95.00

Airbus Helicopters SAS

Marignane (France)

F

75.00

F

75.00

Airbus Helicopters Southeast Asia Pte Ltd

Singapore (Singapore)F

100.00F

100.00Airbus Helicopters Southern Africa (Pty) LimitedLanseria (South Africa)

F

100.00F

100.00Airbus Helicopters Training Services SAS

Marignane (France)F

100.00F

100.00Airbus Helicopters UK Ltd

Oxford (United Kingdom)F

100.00F

100.00Airbus Helicopters Vostok LLC

Moscow (Russia)

F

100.00F

100.00Australian Aerospace Military Maintenance

Brisbane (Australia)

F

100.00F

100.00EADS SECA

Le Bourget (France)F

100.00F

100.00Eurocopter Cono Sur S.A.

Montevideo (Uruguay)

F

55.00

Fly Operational Curso E Formação de Pilotos Ltda

Rio de Janeiro (Brazil)

F

85.66

F

85.66

Helicopteros Do Brasil S.A.

Itajuba (Brazil)

E

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

100.00Motorflug Baden-Baden GmbH

Baden-Baden (Germany)F

100.00Spaero Trade GmbH

Rheinmünster (Germany)F

100.00The Sigma Aerospace Pension Trustee Ltd

Croydon (United Kingdom)F

100.002

F: Fully consolidated.
E: At equity consolidated.
The stated percentage of ownership relates to Airbus Group N.V.
* Only the parent company is stated in this list.
** Companies consolidated in two different segments.

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2.6 Appendix “Information on Principal Investments” – Consolidation Scope

2014

%

2013

%

Company

Head officeF

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

100.00F

100.00

Vector Aerospace Asia Pte Ltd (Singapore)

Singapore (Singapore)F

100.00F

100.00

Vector Aerospace Australia Pty Ltd

Brisbane (Australia)
São Paulo (Brazil)

F

99.00

F

100.00

Vector Aerospace Brasil Servicos E Monutencao
De Aeronaves Ltda (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

Dublin (Ireland)

F

66.70

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

100.00F

100.00

Vector Aerospace Holding SAS

Marignane (France)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)F

100.00

Vector UK

Gosport (United Kingdom)

Airbus Defence and Space(formerly Airbus Military)F

100.00F

100.00Airbus Defence and Space S.A. (Unit: AD)**

Madrid (Spain)F

100.00F

100.00Airbus DS Military Aircraft, Inc.

Herndon (USA)

F

90.00

F

90.00

Airbus Military S.L.

Madrid (Spain)

E

40.00

E

40.00

AirTanker Holdings Ltd*

London (United Kingdom)

E

28.00

AirTanker Services Ltd

Bristol (United Kingdom)

F

78.54

F

78.54

EADS PZL “Warszawa-Okecie” S.A.

Warsaw (Poland)(formerly Cassidian)
E

24.01

E

24.01

Advanced Lithium Systems Europe S.A.

Athens (Greece)

F

100.00F

100.00Airbus Defence and Space GmbH (Unit: AD)**

Ottobrunn (Germany)F

100.00F

100.00Airbus Defence and Space Oy

Helsinki (Finland)

F

100.00F

100.00Airbus Defence and Space Real Estate
Manching GmbH & Co. KG

Pullach i. Isartal (Germany)F

100.00F

100.00Airbus Defence and Space Real Estate Ulm GmbH & Co. KG

Pullach i. Isartal (Germany)F

100.00F

100.00Airbus Defence and Space S.A. (Unit: AD)**

Madrid (Spain)F

100.00F

100.00Airbus DS Communications, Corp.

Gatineau (Canada)F

100.00F

100.00Airbus DS Communications, Inc.

Los Angeles (USA)F

100.00F

100.00Airbus DS Ltd

Newport (United Kingdom)

F

70.00

F

70.00

Airbus DS Optronics (Pty) Ltd

Irene (South Africa)

F

100.00F

100.00Airbus DS Optronics GmbH

Oberkochen (Germany)F

100.00F

100.00Airbus DS SAS

Elancourt (France)F

100.00Apsys S.A.

Suresnes (France)F

100.00

Arkoon Network Security

Lyon (France)

Atlas Electronic LLC

Abu Dhabi(United Arab Emirates)

Atlas Elektronik Finland Oy

Helsinki (Finland)

F

100.00

E

49.00

E

49.00

E

49.00

F: Fully consolidated.
E: At equity consolidated.
The stated percentage of ownership relates to Airbus Group N.V.
* Only the parent company is stated in this list.
** Companies consolidated in two different segments.

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2014

%

2013

%

Company

Head office

E

49.00

E

49.00

Atlas Elektronik GmbH

Bremen (Germany)

E

49.00

E

49.00

Atlas Elektronik Pty. Ltd

Macquarie Park (Australia)

E

49.00

E

49.00

Atlas Elektronik UK (Holdings) Ltd

Winfrith Newburgh(United Kingdom)

E

49.00

E

49.00

Atlas Elektronik UK Ltd

Winfrith Newburgh(United Kingdom)

E

49.00

E

49.00

Atlas Hydrographic GmbH

Bremen (Germany)

E

49.00

E

49.00

Atlas Maridan ApS

Horsholm (Denmark)

E

49.00

E

49.00

Atlas Naval Engineering Company

Kyungnam (South Korea)

E

24.01

E

24.01

Atlas Naval Support Centre Ltd

Bangkok (Thailand)

E

49.00

E

49.00

Atlas Naval Systems Malaysia Sdn. Bhd.

Lumut, Perak (Malaysia)

E

49.00

E

49.00

Atlas North America LLC

Virginia Beach, VA (USA)

F

43.89

F

43.89

Aviation Defense Service S.A.

Saint-Gilles (France)

E

37.50

E

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.

Elancourt (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 Limited

Cheltenham (United Kingdom)F

100.00F

100.00Cassidian Cybersecurity S.A.S.

Elancourt (France)F

100.00F

100.00Cassidian Ltd – Holding

Newport (United Kingdom)F

100.00F

100.00F

100.00F

100.00Cassidian Saudi Ltd

Riyadh (Saudi Arabia)

F

100.00F

100.00Cassidian Solutions S.A.U.

Madrid (Spain)F

100.00Cassidian Test & Services Ltd

Wimborne (United Kingdom)
Elancourt (France)

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

100.00Cassidian Test & Services S.A.S.

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 Operations & Services UK Ltd

Newport (United Kingdom)

F

92.00

F

92.00

Equipo de Planta de Mexico, S.A. de C.V.

Tijuana (Mexico)

E

30.00

E

30.00

ESG Elektroniksystem- und Logistikgesellschaft mbH

Munich (Germany)

E

24.50

ET Marinesysteme GmbH

Wilhelmshaven (Germany)F

100.00Fairchild Controls Corporation

Frederick, MD (USA)F

100.00Get Electronique S.A.S.

Castres (France)

75.00

F

75.00

GEW Integrated Systems (Pty) Ltd

Silverton (South Africa)

F

75.00

F

75.00

GEW Technologies (Pty) Ltd

Brummeria (South Africa)

F

100.00F

100.00GFD GmbH

Hohn (Germany)

E

49.00

E

49.00

Hagenuk Marinekommunikation GmbH

Flintbek (Germany)

E

37.50

Horizon Land Limited

Stevenage (United Kingdom)

E

50.00

E

50.00

Maîtrise d’Oeuvre Système S.A.S.

Issy-les-Moulineaux (France)

E

37.50

E

37.50

Matra Electronique

Le Plessis-Robinson (France)

E

49.00

E

49.00

Matrium GmbH

Karlsruhe (Germany)

E

37.50

E

37.50

MBDA Deutschland GmbH

Schrobenhausen (Germany)FF

100.002

F: Fully consolidated.
E: At equity consolidated.
The stated percentage of ownership relates to Airbus Group N.V.
* Only the parent company is stated in this list.
** Companies consolidated in two different segments.

AIRBUS GROUP FINANCIAL STATEMENTS 2014

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2014

%

2013

%

Company

Head office

E

37.50

E

37.50

MBDA España S.L.

Madrid (Spain)

E

37.50

E

37.50

MBDA France S.A.S.

Paris (France)

E

75.00

E

75.00

MBDA Holding S.A.S.

Paris (France)

E

37.50

E

37.50

MBDA Insurance Ltd

Dublin (Ireland)

E

37.50

E

37.50

MBDA International Ltd

Stevenage (United Kingdom)

E

37.50

E

37.50

MBDA Italy SpA

Rome (Italy)

E

37.50

MBDA Middle East FZE

Dubai (United Arab Emirates)

E

37.50

E

37.50

MBDA S.A.S.

Paris (France)

E

37.50

E

37.50

MBDA Services S.A.

Paris (France)

E

37.50

E

37.50

MBDA Treasury Ltd

Jersey (United Kingdom)

E

37.50

E

37.50

MBDA UAE Ltd

Stevenage (United Kingdom)

E

37.50

E

37.50

MBDA UK Ltd

Stevenage (United Kingdom)

E

37.50

E

37.50

MBDA, Inc.

Westlack, CA (USA)

F

99.84

F

99.84

NETASQ S.A

Villeneuve d’Asq (France)

E

26.80

Patria Oyj

Helsinki (Finland)

F

80.00

F

80.00

Pentastar S.A.

St Gilles (France)F

100.00F

100.00

Plant Holdings, Inc.

Temecula, CA (USA)F

100.00F

100.00Regency IT Group Limited

Cheltenham (United Kingdom)F

100.00F

100.00Regency IT Security Limited

Cheltenham (United Kingdom)

E

18.75

E

18.75

E

79.60

E

79.60

Signalis GmbH

Bremen (Germany)

E

79.60

E

79.60

Signalis Holding GmbH

Unterschleißheim (Germany)

E

79.60

E

79.60

Signalis S.A.S.

Bezons (France)

F

99.88

E

99.88

Skyrecon Systems S.A.

Malakoff (France)

E

49.00

E

49.00

Sonartech Atlas Pty. Ltd

Macquarie Park (Australia)

E

25.13

E

25.13

Taurus Systems GmbH

Schrobenhausen (Germany)

E

37.50

E

37.50

TDW- Ges. für verteidigungstechnische Wirksysteme GmbH

Schrobenhausen (Germany)

E

50.00

E

50.00

United Monolithic Semiconductors Holding*Orsay (France)F

100.00F

100.00Airbus Defence and Space Italy Srl

Rome (Italy)F

100.00F

100.00Airbus Defence and Space Limited

Stevenage (United Kingdom)F

100.00F

100.00Airbus Defence and Space Netherlands B.V.

Leiden (Netherlands)

F

100.00F

100.00Airbus Defence and Space SAS

Les Mureaux (France)

F

99.88

F

99.81

Airbus DS Geo Australia Pty Ltd

Bradon (Australia)

F

99.90

F

98.91

Airbus DS Geo Inc

Chantilly, VA (USA)

F

99.90

F

98.91

Airbus DS Geo SA

Toulouse (France)F

100.00F

100.00Airbus DS GmbH

Munich (Germany)F

100.00F

100.00Airbus DS Government Solutions, Inc.

Plano, TX (USA)F

100.00F

100.00Airbus DS Holding France SAS

Suresnes (France)F

100.00F

100.00Airbus DS Holding SAS

Suresnes (France)F

100.00F

100.00Airbus DS Holdings B.V.

Leiden (Netherlands)

F

100.00F

100.00Airbus DS SatCom Government, Inc

Rockville, MD (USA)F

100.00F

100.00Airbus DS Systems Holdings, Inc

Rockville, MD (USA)F

100.00F

100.00Astrium España S.L.

Madrid (Spain)

Roxel S.A. Saint-Médard en Jalles (France)(formerly Astrium)

F: Fully consolidated.
E: At equity consolidated.
The stated percentage of ownership relates to Airbus Group N.V.
* Only the parent company is stated in this list.
** Companies consolidated in two different segments.

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2014

%

2013

%

Company

Head officeF

100.00F

100.00Astrium Pte Ltd

Singapore (Singapore)F

100.00Astrium Services AS

Lysaker (Norway)

F

100.00F

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

Lysaker (Norway)

F

100.00F

100.00Astrium Services BC B.V.

Gravenhage (Netherlands)

F

100.00F

100.00Astrium Services BC GmbH

Köln (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

Lysaker (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

100.00F

100.00Astrium Services Holding S.A.S.

Suresnes (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

100.00Axio-Net GmbH

Ottobrunn (Germany)

F

54.94

F

54.40

Beijing Spot Image Co Ltd

Beijing (China)

F

66.78

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

100.00EADS CASA Espacio S.L.

Madrid (Spain)F

100.00F

100.00GPT Special Project Management Ltd

London (United Kingdom)

F

77.62

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

100.00F

100.00F

100.00Jena-Optronik GmbHF

100.00F

100.00

MilSat Services GmbH

Bremen (Germany)F

100.00F

100.00MMS Space UK Ltd

Stevenage (United Kingdom)F

100.00F

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

Munsbach (Luxembourg)F

100.00F

100.00

ND SatCom Defence GmbH

Immenstaad (Germany)F

100.00

ND SatCom FZE

Dubai (United Arab Emirates)

F

100.00

ND Satcom GmbH

Immenstaad (Germany)F

100.00

ND SatCom Products GmbH

Immenstaad (Germany)F

100.00

ND SatCom Satellite Communication Systems (Beijing) Co. Ltd

Beijing (China)

Paradigm Secure Communications Ltd

Stevenage (United Kingdom)

2

Infoterra Ltd Farnborough (United Kingdom)
Jena (Germany)F

100.00F

100.00F

100.00F

100.00

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)

Paradigm Services Ltd Farnborough (United Kingdom)

F: Fully consolidated.
E: At equity consolidated.
The stated percentage of ownership relates to Airbus Group N.V.
* Only the parent company is stated in this list.
** Companies consolidated in two different segments.

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2.6 Appendix “Information on Principal Investments” – Consolidation Scope

2014

%

2013

%

Company

Head office

F

66.78

F

66.78

Space Engineering SpA

Rome (Italy)

F

69.93

F

69.24

Spot Asia Pte Ltd

Singapore (Singapore)

F

99.90

F

98.91

Spot Image Brasil Servicios en ImageSão Paulo (Brazil)

F

100.00F

99.99

SSTL US, LLC

Englewood CO (USA)F

100.00F

99.99

Surrey Satellite Investments Ltd

Surrey (United Kingdom)F

100.00F

99.99

Surrey Satellite Services Ltd

Surrey (United Kingdom)F

100.00F

99.99

Surrey Satellite Technology Holdings, Inc.

Englewood CO (USA)F

100.00F

99.99

Surrey Satellite Technology Ltd

Surrey (United Kingdom)

F

99.99

Surrey Satellite Technology Ltd

Isle of Man

F

99.99

F

99.99

Surrey Satellite Technology US LLCEnglewood CO (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

Tokyo Spot ImageTokyo (Japan)

E

30.00

Daher – Socata S.A.*

Louey (France)

EADS North America Holdings, Inc.

Herndon, VA (USA)

Other Businesses

F

100.00F

100.00F

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.

Bertrange (Luxembourg)F

100.00F

100.00Airbus Defence and Space GmbH (Unit: Headquarters)(ex-EADS Deutschland GmbH)**

Ottobrunn (Germany)
Madrid (Spain)
Paris (France)

Headquarters

F

100.00F

100.00Airbus Defence and Space S.A. (Unit: Headquarters)(ex-EADS CASA S.A.)**F

100.00F

100.00Airbus Group Aeroassurances S.N.C.
(ex-EADS Aeroassurance S.N.C.)

F

100.00Airbus Group Bank GmbH

Munich (Germany)F

100.00F

100.00Airbus Group Finance B.V. (ex-EADS Finance B.V.)

Leiden (Netherlands)

F

100.00Airbus Group HQ Inc.

Herndon, VA (USA)F

100.00Airbus Group Inc.

Herndon, VA (USA)F

100.00F

100.00Airbus Group Management Services GmbH
(ex-EADS Management Services GmbH)

Ottobrunn (Germany)F

100.00F

100.00Airbus Group Real Estate Dornier Grundstücke GmbH & Co. KG(ex-EADS Real Estate Dornier Grundstücke GmbH & Co. KG)

Pullach (Germany)
Pullach (Germany)F

100.00F

100.00Airbus Group Real Estate Taufkirchen GmbH & Co. KG(ex-EADS Real Estate Taufkirchen GmbH & Co. KG)

F

100.00F

100.00Airbus Group S.A.S. (ex-EADS France S.A.S.)

Paris (France)F

100.00F

100.00AirbusGroup Limited (ex-EADS UK Ltd)

London (United Kingdom)

F

99.73

AL Objekt Taufkirchen GrundstücksVerwaltungsgesellschaft mbH & Co. KG

Grünwald (Germany)

F

99.73

F

100.00F

100.00DADC Luft- und Raumfahrt Beteiligungs GmbH

Ottobrunn (Germany)

E

42.11

E

46.32

Dassault Aviation S.A.*

Paris (France)F

100.00Dornier GmbH – Zentrale

Friedrichshafen (Germany)

F: Fully consolidated.
E: At equity consolidated.
The stated percentage of ownership relates to Airbus Group N.V.
* Only the parent company is stated in this list.
** Companies consolidated in two different segments.

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2014

%

2013

%

Company

Head officeF

100.00F

100.00EADS CASA France S.A.S.

Paris (France)F

100.00F

100.00Immobilière AELIS S.A.S.

Paris (France)F

100.00F

100.00

LLC “EADS”

Moscow (Russia)

F

100.00F

100.00

Matra Défense S.A.S.

Paris (France)F

100.00F

100.00

Matra Holding GmbH

Kehl (Germany)F

100.00F

100.00OBRA Grundstücks-Verwaltungsgesellschaft mbH

Taufkirchen (Germany)2

F: Fully consolidated.
E: At equity consolidated.
The stated percentage of ownership relates to Airbus Group N.V.
* Only the parent company is stated in this list.
** Companies consolidated in two different segments.

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Company Financial Statements

3
Balance Sheet

114

Income Statement

115

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Company Financial Statements

Balance SheetNote

At 31 December
2014(In € million)

2013

AssetsFixed assets(2)Goodwill

2

4,354

4,354

Financial assets(2)

2

9,587

13,960Non-current securities

4

5,809

4,179

19,75022,493

9,526

10,073Current assets
Receivables and other assets

3

Current securities

4

3,077

2,430

Cash and cash equivalents

4

6,200

6,126

18,803

18,62938,553

41,122785

783

Share premium

4,500

5,049

Revaluation reserves(2)(2,640)1,726

Legal reserves(2)

3,809

4,440

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

(8)

(50)

Retained earnings(2)(1,728)(2,557)

Result of the year(2)

2,343

1,473

7,061

10,864

5,551

3,514

5,551

3,514

Treasury shares

Non current liabilities
Non current financing liabilities

6

Current liabilities
Current financing liabilities
Other current liabilities

7

Total liabilities and stockholders’ equity(2)(1) The balance sheet is prepared before appropriation of the net result.
(2) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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AIRBUS GROUP FINANCIAL STATEMENTS 2014-

914

25,941

25,83025,941

26,74438,553

41,122

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Company Financial Statements

Income Statement(In € million)

2014

2013

Income from investments(1)

2,412

1,474

Other results

Net result(1)

8

(69)

(1)

2,343

1,473

(1) Previous year figures are adjusted due to the application of IFRS 10 and IFRS 11.

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Notes to the Company Financial
Statements

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Contents

118

1.

Basis of Presentation

119

2.

Fixed Assets

120

3.

Receivables and Other Assets

121

4.

Securities, Cash and Cash Equivalents

121

5.

Stockholders’ Equity

121

6.

Financing Liabilities

122

7.

Current Liabilities

122

8.

Net Income

123

9.

Financial Instruments

123

10.

Commitments and Contingent Liabilities

123

11.

Remuneration

123

12.

Employees

126

13.

Related Party Transactions

126

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1.

Basis of Presentation

1.1 GeneralIn the Annual General Meeting of 27 May 2014 the Company’s
Shareholders approved a resolution for amendment of Article 2,paragraph 1 of the Company’s Articles of Association, to change
the name of the Company from European Aeronautic Defence
and Space Company EADS N.V. into Airbus Group N.V., effective
2 June 2014.
Airbus Group N.V., having its legal seat in Amsterdam, theNetherlands, is engaged in the holding, coordinating and managingof 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 undertakingsthat 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 2014
Consolidated Financial Statements of Airbus Group 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 andliabilities and the determination of the result
For setting the principles for the recognition and measurementof assets and liabilities and determination of the result for its
Company Financial Statements, Airbus Group 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 andliabilities and determination of the result (hereinafter referred toas principles for recognition and measurement) of the Company
Financial Statements of Airbus Group N.V. are the same as those
applied for the Consolidated EU-IFRS Financial Statements.
These Consolidated EU-IFRS Financial Statements are preparedaccording to the standards laid down by the International AccountingStandards Board and adopted by the European Union (hereinreferred 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 Airbus Group N.V. in the result of these participatinginterests. Results on transactions, where the transfer of assets andliabilities between Airbus Group N.V. and its participating interestsand mutually between participating interests themselves, are notincorporated 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.

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2.

Fixed Assets

At the end of 2014, goodwill acquisition cost amounts to € 5,676 million (2013: € 5,676 million) and the cumulative amortisation andimpairments amounts to € 1,322 million (2013: € 1,322 million).
The movements in ﬁnancial ﬁxed assets are detailed as follows:
Subsidiaries

Participations

Loans

Total

Balance at 31 December 2012

7,629

162

3,540

11,331

Prior Years’ Adjustment(1)

(143)

-

-

(143)

Balance at 1 January 2013, adjusted

7,486

162

3,540

11,188

22

544

566

(422)

(422)

(In € million)

Additions
Redemptions
Share based payments

33
(1)

1,461

Actuarial gains / losses IAS 19(48)

Net income from investments

Dividends received
Translation differences / other changes(1)Balance at 31 December 2013

13

1,474
(48)

(26)

(6)

1,274

24

(97)

1,201

10,180215

3,565

13,960696

805(1,021)(1.285)Additions109

Disposals / redemptions(220)

Share based payments(5)

Net income from investments

2,321Actuarial gains / losses IAS 19(1,585)

Dividends received / proceeds from disposals

33

(651)

(44)

(32)

(5)
91

2,412
(1,585)

(107)

(758)

Translation differences / other changes(4,184)24

203(3,957)

Balance at 31 December 2014

5,965

179

3,443

9,587

(1) Previous years’ figures are adjusted due to the application of IFRS 10 and IFRS 11.

The investments in subsidiaries are included in the Balance
Sheet 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.

120

The loans in the amount of € 3,443 million (2013: € 3,565 million)
include loans provided to subsidiaries in the amount of € 3,311 million(2013: € 3,207 million) and loans provided to participations in theamount of € 78 million (2013: € 94 million). The additions of loans ismainly driven by loans provided to the subsidiaries Airbus SAS andSogerma SAS. The item redemptions mainly reﬂects repaymentsof loans provided to Airbus DS Holdings B.V. (formerly: AstriumB.V.) and Paradigm Secure Communications Ltd. An amount of€ 2,075 million (2013: € 1,519 million) has a maturity between ﬁve
and ten years and an amount of € 313 million (2013: € 391 million)
matures after ten years. On average, the interest rate of the loans
is 3% (2013: 3.5%).

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3.

Receivables and O ther Assets(In € million)

2014

2013

Receivables from subsidiaries

9,370

9,873

156

200

9,526

10,073

Other assets

Total receivables and other assets

The receivables from subsidiaries include mainly receivables in connection with the cash pooling in Airbus Group 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€ 5,809 million (2013: € 4,179 million). For further information please see Note 22 of the Consolidated Financial Statements.
Airbus Group 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 2012
Prior Years’ Adjustment(1)Balance at 1 January 2013,adjusted
Capital increase
Net income

Capital
stock

Share
premiums

Revaluation
reserves

Legal
reserves

TreasurysharesRetainedearnings

Result of
the yearTotal
equity

827

7,253

146

4,143

(84)

(3,079)1,197

10,403

-

-

24

(26)

-

(141)

-

(143)

827

7,253

170

4,117

(84)

(3,220)

1,197

10,260

9

233

242

(1)

1,473

Cash distribution(467)

Share based payments

(74)

(467)
107

Transfer to legal reserves

475

Purchase of treasury shares
Cancellation of treasury shares(53)(1,896)
(152)

783

5,049

1,726

4,440

2

50

Transfer from legal reserves
Capital increase

0
(166)

(50)

(1,079)

1,197(1,197)0

1,473

10,864

1,079

0
52
2,343

(587)

Transfer to legal reserves

202

Purchase of treasury shares

(5)

(5)

(202)

0

72

114

(12)

Sale / cancellation of treasury shares(12)

Others54(4,366)

246

4,500

(2,640)

3,809

(12)

(1,588)

Appropriation of result(1)

785

2,343
(587)

Share based payments

Balance at 31 December 2014

1,238

(2,557)

Net income
Cash distribution

4

0(1,915)

1,949
1,556

Appropriation of result

Balance at 31 December 2013

33

(475)
(1,915)

Others(1)

1,473

(8)

(5,708)1,473(1,473)0(1,728)

2,343

7,061

(1) Previous years’ figures are adjusted due to the application of IFRS 10 and IFRS 11.

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For further information to the Stockholders’ equity, please see
Note 23 of the Consolidated Financial Statements.
As of 31 December 2014, the item “Revaluation reserves” relates to€ 670 million (adjusted 2013: € 625 million) from unrealised positive
fair values of securities classiﬁed as available for sale, and fairvalues of cash ﬂow hedges, recognised directly in equity with anegative amount of € 3,310 million (adjusted 2013: € 1,101 million
positive fair values). The securities classiﬁed as available for saleand cash ﬂow hedges are included in the ﬁxed asset movement
schedule within “Subsidiaries”.
The “Legal reserves” are related to Airbus Group’s share in
the undistributed results from investments for € 1,647 million(2013: € 1,626 million), the legal reserve afﬁliated companies of€ 727 million (2013: € 1,625 million) and € 1,435 million (adjusted
2013: € 1,189 million) resulting from currency translation effects
of afﬁliated companies. The legal reserve “afﬁliated companies”,
required under Dutch law, relates to legal restrictions on the abilityof afﬁliated companies to distribute reserves to the parent company.
In 2014 the Company applied a different method in determining
this reserve that better reﬂects the actual distributable reserves of

6.

The “Retained earnings” include actuarial losses arising fromdeﬁned beneﬁt plans, recognised in equity, with an amount of€ 4,695 million negative (adjusted 2013: € 3,110 million negative).
Pursuant to Dutch law, limitation exist relating to the distribution ofstockholders’ equity with an amount of € 5,264 million (adjusted
2013: € 6,949 million). The limitations relate to capital stockof € 785 million (2013: € 783 million) and to legal reserves of€ 3,809 million (adjusted 2013: € 4,440 million). In 2014, unrealised
gains related to “Revaluation reserves” with an amount of€ 670 million (adjusted 2013: € 1,726 million) were not distributable.
In general, gains related to available for sale securities, fair valuesof cash ﬂ ow hedges, currency translation effects of afﬁ liatedcompanies and capitalised development costs reduce the
distributable stockholders’ equity.

Financing Liabilities

The non current ﬁnancing liabilities in the amount of € 5,551 million(2013: € 3,514 million) include three long-term loans, grantedby the European Investment Bank to Airbus Group for a total
amount of US$ 1,754 million, a US$ 300 million loan granted by
the Development Bank of Japan and ﬁve loans granted by Airbus
Group Finance B.V. (formerly: EADS Finance B.V.) for an amount of€ 2,986 million and US$ 1,000 million. The four EUR-loans originate
from the issuance of four EURO denominated bonds under Airbus

7.

the Company. The internally generated capitalised development
costs are no longer a separate reserve but included within thelegal reserve “afﬁliated companies”. This change is applied from
1 January 2014 onwards and the opening balance of the legal
reserve has been adjusted (see movement “transfer from legal
reserves” for an amount of € 1,079 million).

Group’s EMTN Programme by Airbus Group Finance B.V. The
US$-Loan originates from the issuance by Airbus Group Finance
B.V. of a US$ denominated bond in the US institutional market.
Terms and conditions of the three loans basically match those of
the underlying bonds.
For further details, please see Note 26 of the Consolidated Financial
Statements.

Current Liabilities(In € million)

2014

2013

Liabilities to subsidiaries

25,10225,029Liabilities to participations

602

598

Other liabilities

237

203

25,941

25,830Total

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

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8.

Net Income

The net income in 2014 amounts to € 2,343 million (adjusted 2013: net income of € 1,473 million). This comprises the net result frominvestments of € 2,412 million and other results of € 69 million negative. Other results relate mainly to the fair value loss on the LTIP
hedge contracts.

9.

Financial Instruments

By the nature of the activities carried out, Airbus Group is exposed
to a variety of ﬁnancial risks, especially foreign currency exchange
rate risks and interest risks. Airbus Group uses ﬁnancial instruments

in order to limit these ﬁnancial risks. Information to the terms andconditions of the ﬁnancial instruments and the respective fair values
is provided in Note 34 of the Consolidated Financial Statements.

10. Commitments and Contingent Liabilities
Airbus Group N.V. issued guarantees on behalf of consolidated
companies in the amount of € 6,409 million (2013: € 6,404 million).
The commitments of these companies to third parties mainly
relate to their operating business as described in Note 33 to theConsolidated Financial Statements. The Company is heading aﬁscal unity, which also includes Airbus Group Finance B.V. (formerly:
EADS Finance B.V.), Airbus DS Holdings B.V. (formerly: AstriumB.V.) and Airbus Defence and Space Netherlands B.V. (formerly:
Dutch Space B.V.) and therefore the Company is several and jointly
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 thereporting periods 2014 and 2013 can be summarised as follows:

Executive Member of the Board (Tom Enders)(In €)

Base Salary
(1)

2014

2013

1,400,004

1,400,004

1,750,000

1,989,646

Post employment benefits costs(2)1,043,679

1,042,392

Share based remuneration (“LTIP award”)(3)

Annual Variable Pay

2,798,039

4,669,363

Other benefits

68,41573,687

Social charges

11,172

11,052

4(1) The annual variable pay is based on estimated performance achievement as at the balance sheet date and difference between previous year’s estimation and actual pay-out inthe current year.
(2) Aggregated amount of current service and interest costs as well as interest cost on employee’s contribution to the defined benefit plan.
(3) Expense related to share-based payment plans as recognised in the annual period (service period) including result from hedge of cash-settled share based payment: refer to Note 35
to the Consolidated Financial Statements for details. The pay-out from vested cash settled LTIP in 2014 was € 2,374,997 (2013: € 2,262,550).

The bonus conditions are disclosed in the Board report, chapter 4.3.2.

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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 2014*

Directors’ remuneration related to 2013*

Fixum

Attendance Fees

Total

Fixum Attendance Fees

Total(in €)(in €)(in €)(in €)(in €)(in €)

180,000

70,000250,000

135,000

60,000

195,000

Current non-Executive Board Members*
Denis Ranque(1)(2)

80,00025,000105,000

60,00045,000105,000

Ralph D Crosby Jr(3)80,00035,000115,000

60,00045,000105,000(4)

120,000

Manfred Bischoff

100,000

30,000130,000

75,00045,000Hermann-Josef Lamberti(5)110,000

35,000145,000

115,000

60,000175,000

Anne Lauvergeon(6)100,000

30,000130,000

75,00045,000120,000

Lakshmi N. Mittal(7)100,000

30,000130,000

95,00035,000130,000

Sir John Parker(8)110,000

35,000145,000

115,000

50,000165,000

Michel Pébereau(9)100,000

30,000130,000

95,00055,000150,000

Josep Piqué i Camps(10)100,000

15,000115,000

95,00050,000145,000

100,000

35,000135,000

95,00060,000155,000

Dominique D’Hinnin(12)

N/A

N/A

N/A

30,00010,00040,000Arnaud Lagardère(13)

N/A

N/A

N/A

45,00020,00065,000Wilfried Porth(14)

N/A

N/A

N/A

25,00010,00035,000Bodo Uebber(15)

N/A

N/A

N/A

25,0005,000

30,0001,160,000

370,000

1,530,000

1,140,000

595,000

1,735,000

Hans-Peter Keitel(11)

Jean-Claude Trichet

Former non-Executive Board Members

Total

*
The Fixum related to 2013 was paid in 2014; the Fixum related to 2014 will be paid in 2015.
(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.

The table below gives an overview of the interests of the current Executive Board Director under the various Long-Term Incentive
Plans of the Group:

Stock option plans
NUMBER OF OPTIONSYear of plan

Initially
granted

As at
1 Jan 2014

Granted in2014

Exercisedduring 2014

As at
31 Dec 2014

Exercise
price in Euro

Expiry date

67,50050,625-50,6250

25.65

16 Dec 2016

Tom Enders
2006

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

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after the Group’s Annual General Meeting in late May 2013. The
independence of the trust protects the integrity of the signee andpromises compliance with market regulations on such matters.

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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 inadvance by the trust, and are implemented by the relevant bankfollowing a substantial time buffer (of approximately three months)
without any knowledge or inﬂuence of the signatory.
Any exercise / sale of the Chief Executive Ofﬁcer in 2014 was
executed in the frame of the blind trust mandates with nounexercised stock options remaining at the end of 2014.

Performance Units plan
NUMBER OF PERFORMANCE UNITS**Tom Enders

Granted in 2009

Vested in 2014

46,00021,217 units (vested in Cash) and 14,145 units (vested in Shares)* (Re-evaluation of Performance Units based on 123% performance achievement)* 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 Consolidated Financial Statements) 75% of those 56,580 units (42,435 units) have vested in cash at each of initial vesting dates.
The remaining 25% of the 56,580 units (14,145 units) have vested and been settled in shares in November 2014.There are no outstanding unvested units of 2009 plan.

Tom Enders

Granted in 2010

Vested in 2014

54,40027,744* (Re-evaluation of Performance Units
based on 136% performance achievement)
Remaining vesting schedule:
25% of cash-settled units: expected in May 2015
25% of cash-settled units, 100% of equity-settled
units: expected in November 2015■■

* 54,400 of granted units increased to 73,984 in accordance with performance achievement of 136%. In line with end of 2012 implemented option of partial conversion to equity
settlement (see Notes 35 and 36 of Consolidated Financial Statements) 75% of those 73,984 units (55,488 units) will vest in cash at each of initial vesting dates. The remaining 25% of
the 73,984 units (18,496 units) will vest and be settled in shares 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 shares at the last
vesting date.

Granted in 2011

Vesting dates
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■

Tom Enders■

51,400■■End of 2012, the Chief Executive Office opted for 75% cash settlement of all vesting Performance Units at each vesting date. Remaining 25% of units will be settled in shares at the last
vesting date.

Granted in 2012■

Tom Enders

50,3004

Vesting dates■■■

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 201725% 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 in sharesat the last vesting date.

Granted in 2013

Vesting dates■

Tom Enders

30,300■■■

Vesting schedule is made up of 4 payments over 2 years:
25% of cash-settled units: expected in May 201725% of cash-settled units: expected in November 201725% 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 shares at thelast vesting date.

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

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Tom Enders

Granted in 2014

Vesting dates

29,500

Vesting schedule is made up of 2 payments over 2 years:
50% of cash-settled units: expected in June 2018
50% of cash-settled units, 100% of equity-settled
units: expected in June 2019■■

By end of February 2015, Chief Executive Officer will accordingly decide on the split for the 2014 LTIP plan.

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 2,240,891 at 31 December 2014 (2013:
4,314,115).
During the year 2014, the Executive Committee Members haveexercised 188,128 options granted under the various stock option
plans. 118,000 options were exercised by former Executive Board
Directors.

Performance and Restricted Unit plans
The total number of outstanding performance and Restricted Units
amounted to 11,359,272 at 31 December 2014 (2013: 13,492,556)
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 2014 for the Chief Executive Ofﬁcer was€ 3,287,645 (2013: € 4,232,328).
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 ﬁve years of service in the Executive Committee of Airbus
Group, payable once they reach retirement age.
These rights can gradually increase to 60% after a second term,
usually after ten years of service in the Airbus Group Executive
Committee. However, in order to reach this 60% replacement ratio
the respective Member of the Executive Committee must also 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 including deferred compensation amounted to€ 18,584,426 as of 31 December 2014, whilst the amount of current
service and interest cost related to his pension promise accounted
for the ﬁscal year 2014 represented an expense of € 1,043,679.
This amount has been accrued in the Consolidated Financial
Statements. The deﬁned beneﬁt obligation of Tom Enders resultsfrom the Group’s Executive Committee pension policy as describedabove and takes into account (1) the seniority of Tom Enders in theGroup and its Executive Committee and (2) the signiﬁcant lower
public pension promise derived from the German social security
pension system compared to public pensions resulting from themembership in the French public pension system.

Other Beneﬁts
The Chief Executive Ofﬁcer, Tom Enders, is entitled to accident
insurance coverage and a company car. In 2014 the total amount
expensed was € 68,415.
The Company has not provided any loans to/ advances to/guarantees on behalf of Directors.
For further information on the remuneration, please see Note 35
and 36 of the Consolidated Financial Statements.

12. Employees
The number of persons employed by the Company at year end 2014 was 3 (2013: 2).

13. Related Party Transactions
For further information on the related party transactions, please see Note 36 of the Consolidated Financial Statements.

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including the Independent
Auditor’s report

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Other Supplementary Information
1.

Appropriation of Result

Articles 30 and 31 of the Articles of Association provide that the Board of Directors shall determine which part of the result shallbe 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 the annual
accounts from which it appears that the shareholders’ equity of the Company is more than the amount of the issued and paid-in partof 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 € 2,343 million as shown in the income
statements for the ﬁnancial year 2014 is to be added to retained earnings and that a payment of a gross amount of € 1.20 per share
shall be made to the shareholders.

2.

Subsequent Events

For further information please see Note 40 of the Consolidated Financial Statements.

3.

Independent Auditor’s report

To: The General Meeting of Shareholders of Airbus Group N.V.

Our Opinion
We have audited the accompanying ﬁnancial statements 2014 of Airbus Group N.V., Amsterdam. The ﬁnancial statements include
the Consolidated Financial Statements and the Company Financial Statements.
In our opinion:
the Consolidated Financial Statements give a true and fair view of the ﬁnancial position of Airbus Group N.V. as at 31 December
2014 and its result and its cash ﬂows for the year then ended in accordance with International Financial Reporting Standards as
adopted by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Netherlands Civil Code;■the Company Financial Statements give a true and fair view of the ﬁnancial position of Airbus Group N.V. as at 31 December 2014
and of its result for the year then ended in accordance with Part 9 of Book 2 of the Netherlands Civil Code.
■

The Consolidated Financial Statements comprise:
1. the consolidated statement of financial position as at 31 December 2014;
2. the consolidated statements of income, comprehensive income, changes in equity and cash flows for the year then ended; and3. the notes, comprising a summary of the significant accounting policies and other explanatory information.
The Company Financial Statements comprise:
1. the Company balance sheet as at 31 December 2014;
2. the Company profit and loss account for the year then ended; and3. the notes, comprising a summary of the accounting policies and other explanatory information.

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Basis for Opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities underthose standards are further described in the “Our responsibilities for the audit of the financial statements” section of our report.
We are independent of Airbus Group N.V. in accordance with the Verordening inzake de onafhankelijkheid van accountants bij
assurance-opdrachten (ViO) and other relevant independence regulations in the Netherlands. Furthermore we have compliedwith the Verordening gedrags- en beroepsregels accountants (VGBA) and other relevant regulations.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Materiality
Misstatements can arise due to fraud or error and are considered to be material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The
materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatementson our opinion.
Based on our professional judgment the materiality for the Consolidated Financial Statements as a whole was set at € 222 million,
which is 6.9% of consolidated profit before income taxes. We consider profit before income taxes to be the most appropriate
benchmark given the nature of the business. We also take into account misstatements and/or possible misstatements that arein our opinion material for qualitative reasons for users of the financial statements.
We agreed with the Board of Directors and Audit Committee to report to them individual uncorrected misstatements in excess of€ 11 million that we identify during our audit and smaller misstatements that in our view must be reported on qualitative grounds.

Scope of our Group Audit
Airbus Group N.V. is at the head of a group of entities, hereafter referred to as “Airbus Group” or “Group”. The financial informationof this group is included in the Consolidated Financial Statements of Airbus Group N.V.
Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and performing the groupaudit. A significant part of the audit is performed by other auditors within the KPMG network or by other non-KPMG audit firms.
The organisation and supervision of the audit of the Consolidated Financial Statements is a crucial part of our work.
In this context, we have determined the nature and extent of the audit procedures to be performed for the group entities, basedon the significance and/or risk profile of entities or activities. On this basis, we selected the entities for which an audit of thecomplete set of the entity’s financial statements or specific items was necessary. Our group audit mainly concentrated on
significant entities. We scope entities into the group audit where they are of significant size, have significant risks to the Groupassociated with them or are considered significant for other reasons. This resulted in coverage of 96% of total Group revenue
and 98% of total Group assets. For remaining entities, we performed, amongst others, analytical procedures to corroborate ourassessment that there are no significant risks of material misstatement within these entities.
The audit of the Airbus Group consolidation and the financial statements is performed at the Airbus headquarters in Toulouse,
France. Our involvement in the audit includes participation in risk assessment and planning discussions, setting the directionof the group audit work (including instructions to the divisional and entity auditors), review and discussion of the planned audit
approach, obtaining an understanding of the financial reporting process, performing procedures on the Group consolidation,
participating in the evaluation of key accounting topics, reviewing the financial statements and participating in meetings withGroup and divisional management.
The audit of the three Airbus Group Divisions (Airbus, Airbus Defence & Space and Airbus Helicopters) is performed jointly by
KPMG network firms and other non-KPMG audit firms. Meetings were held with the divisional auditors to discuss the findings
reported to the group audit team, as well as file reviews.
By performing the procedures above, combined with additional procedures at group level, we have obtained sufficient andappropriate audit evidence regarding the financial information of the Group to provide an opinion on the Consolidated Financial
Statements.

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Key Audit Matters
In the key audit matters we describe matters that, in our professional judgment, were of most significance in our audit of theConsolidated Financial Statements. We have communicated the key audit matters with the Board of Directors and Audit Committee.
The key audit matters are not a comprehensive reflection of all matters discussed.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.

Accounting for Construction Contracts, Including Revenue Recognition and Loss Provisions
Refer to the disclosure on “Management judgment and use of accounting estimates”, Note 6 “Revenues and Gross Margin” andNote 25 “Provisions” of the ﬁ nancial statements.

The Risk
The amount of revenue and profit recognised in a year is dependent on the assessment of the stage of completion of construction
contracts as well as estimated total revenue and estimated total cost. Significant estimates are made to assess the stage ofcompletion based on milestones, estimated revenue and costs for the key programmes such as A400M and A350 XWB (contracts
with launch customers only). Depending on these assessments, the stage of completion is determined, revenue is recognised
and loss accruals are recorded when the contract margin is negative. Provisions for contract losses relate mainly to the A400M
and A350 XWB launch customers and are recorded when it becomes probable that estimated total contract costs will exceed
estimated total contract revenues. Updates to these provisions can have a significant impact on the Group’s result and financial
position. The determination of these provisions is based on best available estimates and require significant judgment and estimatesassociated with the technical development achievement and certification schedules, production plan (including assumptions onramp up), performance guarantees as well as expected outcome from ongoing negotiations.
Significant estimates include total contract costs, total contract revenues and contract risks (from both the cost and revenue
perspective), which therefore require significant management judgment. Due to the inherent uncertainty involved in forecasting
future costs and interpreting contractual and commercial positions this is a key judgmental area for our audit.

Our Response
We evaluated the design and tested the effectiveness of internal controls for accounting for construction contracts. We also
performed detailed procedures on individually significant programmes, including discussions with the individual Head ofProgramme, and evaluated management’s assumptions in the determination of amongst others the stage of completion ofa project, estimates to complete for both revenue and costs, and any provisions for loss making contracts. We focus on
management’s assessment of key contract risks and opportunities to determine whether these are appropriately reflected in
the cost to complete forecasts. We paid specific attention for example to technical development, delivery plan and certification
schedules. We challenged management’s assumptions by discussing and reviewing correspondence with customers, considering
the accuracy and consistency of similar estimates made in previous years and obtaining the latest contractual information.
Particular attention was paid to the increase in the loss provision for the A400M programme in light of the delays incurred,
critical phase of the programme and associated risks, challenges regarding military functionality and industrial ramp-up, andthe SOC 1.0 technical milestone which fell due end of October 2013 and remains to be achieved.

Valuation of Inventories for Non-Construction Contracts and completeness of Provisions for Contract
Losses and Customer Service Obligations
Refer to the disclosure on “Management judgment and use of accounting estimates” and Notes 18 “Inventories”, and 25 “Provisions”
of the financial statements.

The Risk
Inventories amount to € 25 billion including work in progress of € 17 billion. Key programmes in light of the risks mentioned below
are the A380 and the A350 XWB contracts with non-launch customers. Estimates of total contract costs and selling price peraircraft are required to determine if a net realisable value impairment or provision for contract loss is required. In addition to therisk of contract cancellations, significant costs or loss of revenue may be incurred in connection with remedial action required tocorrect any performance issues detected. Due to the inherent uncertainty involved in forecasting future costs and interpreting
contractual and commercial positions in determining impairments and provisions, this is a key audit area.

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Our Response
We evaluated the design and tested the effectiveness of internal controls for identifying and recording impairments and provisions
and performed detailed procedures including discussions with the Head of Programmes. We evaluated management’s assumptionsin the determination of the forecast revenue to be received, costs to be incurred (including any contractual penalties) and grossmargin. Our evaluation was based on our assessment of the historical accuracy of the Group’s estimates in previous periods andincluded an analysis of contingencies and impact of known technical issues on cost forecasts and provisions. We also discussed thecommercial status of the A380 programme with management including the ongoing commitment of Airbus to the A380 programme.

Litigation and Compliance With Laws and Regulations
Refer to the disclosure on “Management judgment and use of accounting estimates” and Note 32 “Litigation and claims” of theﬁ nancial statements.

The Risk
Litigation and claims involve amounts that are potentially significant and the estimate of the amount to be provided as a liability,
if any, is inherently subjective. The outcome of these matters may have a material effect on the Group’s result and financial
position. A part of the Group’s business is characterised by competition for individual significant contracts with customers
which are often directly or indirectly associated with governments. The process associated with these activities is susceptible
to the risk of non-compliance with laws and regulations. In addition the Group operates in a number of territories where the useof commercial intermediaries is normal practice. Subsidiaries of Airbus Group N.V. are currently under investigation by various
law enforcement agencies (e.g. GPT and Eurofighter), including investigations started by the German and Romanian authorities
mid-October 2014 relating to the border-surveillance project in Romania and two other projects in China and Saudi Arabia.

Our Response
Our audit procedures included, among others, assessment of documents with the Group’s general counsel and the Group /divisional compliance officers on all significant legal cases. In addition we obtained confirmation letters from the Group’s legal
counsel and external lawyers for all significant litigation. We used our own forensic specialists to assess risks and perform
procedures to identify actual and potential non-compliance with laws and regulations relevant to the Group’s business, analysed
correspondence with enforcement agencies, and monitored external sources of information. With respect to cases regarding
alleged non-compliance with laws and regulations, we assessed the adequacy of management’s response (including investigations
and corrective actions). We tested payments made to intermediaries during the year, made enquiries of appropriate personnel andevaluated the tone set by the Board and the Group’s approach in managing these compliance risks. We also assessed whether
the Group’s disclosures detailing significant legal proceedings and suspected breach in laws and regulations adequately disclosethe contingent liabilities of the Group within Note 32.

Goodwill Impairment
Refer to the disclosure on “Management judgment and use of accounting estimates” and Note 13 “Intangible assets” of the ﬁnancial
statements.

The Risk
Goodwill amounts to € 10 billion and represents 10% of the balance sheet total and 141% of total equity. There is a risk of irrecoverabilityof the Group’s signiﬁcant goodwill balance due to weak demand in certain markets and to the nature of the cost base in the aerospaceand defence industry. The Company used assumptions such as growth rates, weighted average cost of capital and underlying foreignexchange rates. Due to the inherent uncertainty involved in forecasting and discounting future cash ﬂows, which are the basis of theassessment of recoverability, this is one of the key judgmental areas that our audit is concentrated on. These judgments are describedin Note 13 to the ﬁnancial statements.

Our Response
In this area our audit procedures included, among others, testing of the Group’s budgeting procedures upon which the forecasts are
based and the principles and integrity of the Group’s discounted cash ﬂow model. We used our own valuation specialist to assist us inevaluating the assumptions and methodologies used by the Group, in particular relating to the discount rate used. We also evaluatedsensitivity analyses on the assumptions for each cash generating unit. We compared the sum of the discounted cash ﬂows to theGroup’s market capitalisation to assess the reasonableness of those cash ﬂows. We also assessed whether the Group’s disclosuresabout the sensitivity of the outcome of the impairment assessment to changes in key assumptions reﬂected the risks inherent in thevaluation of the cash generating units.

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Derivative Financial Instruments
Refer to Note 34 “Information about ﬁnancial instruments” of the ﬁnancial statements.

The RiskAirbus Group inherently operates in a business environment that is exposed to currency and interest rate volatility. A signiﬁcantportion of the Group’s revenue is denominated in US dollars, while a major part of its costs is incurred in Euro and, to a lesser
extent, in pounds Sterling. In response to these risks the Group uses ﬁnancial instruments (mainly currency forwards) to mitigate
the exposure to changes in market rates.
The magnitude of the Group’s hedge portfolio and potential signiﬁcant changes in the exchange rate of the US dollar versus theEuro, could have a negative effect on its result of operations and ﬁnancial condition. In addition, there is a high inherent risk of error
in the Group ﬁnancial statements, both in the valuation of the ﬁnancial instruments and in the presentation and disclosure in theﬁnancial statements.

Our Response
For the audit of ﬁ nancial instruments we used specialists that tested the controls around the Group’s central treasury system,
independently calculated the valuation of the treasury portfolio and tested the application of hedge accounting rules and the resulting
accounting treatment. We also obtained counterparty conﬁrmation of the outstanding ﬁnancial instruments to verify the existence
and ownership. Finally, we evaluated whether appropriate disclosures relating to ﬁnancial instruments were made in the ﬁnancial
statements.

Responsibilities of the Board of Directors for the Financial Statements
The Board of Directors is responsible for the preparation and fair presentation in accordance with EU-IFRS and 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 theNetherlands Civil Code, and for such internal control as the Board of Directors determines is necessary to enable the preparationof ﬁnancial statements that are free from material misstatement, whether due to fraud or error.
In preparing the ﬁnancial statements, the Board of Directors is responsible for assessing the Company’s ability to continue as a going
concern. Based on the ﬁnancial reporting frameworks mentioned, the Board of Directors should prepare the ﬁnancial statements
using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so. The Board of Directors should disclose events and circumstances that may
cast signiﬁcant doubt on the Company’s ability to continue as a going concern.

Our responsibilities for the Audit of the Financial Statements
Our objective is to plan and perform the audit assignment in a manner that allows us to obtain sufﬁcient and appropriate audit
evidence for our opinion.
Our audit has been performed with a high, but not absolute, level of assurance, which means we may have not detected all errors
and fraud.
For a further description of our responsibilities in respect of an audit of ﬁnancial statements in general, we refer to the website of
the professional body for accountants in the Netherlands (NBA). www.nba.nl/standardtexts-auditorsreport.

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Report on Other Legal and Regulatory Requirements
Report on the Report of the Board of Directors and the Other Information
Pursuant to the legal requirement under Part 9 of Book 2 of the Netherlands Civil Code:we have no deﬁciencies to report as a result of our examination whether the report of the Board of Directors, to the extent we canassess, has been prepared in accordance with Part 9 of Book 2 of the Netherlands Civil Code, and whether the information as
required under Part 9 of Book 2 of the Netherlands Civil Code has been annexed;■further we report that the report of the Board of Directors, to the extent we can assess, is consistent with the ﬁnancial statements.
■

Appointment
We were appointed before 2008 as auditor of Airbus Group N.V. and have operated as auditor since then. We were re-appointed
by the Annual General Meeting of Shareholders as auditor of Airbus Group N.V. on 27 May 2014, for the year 2014.
Amstelveen, 28 February 2015

KPMG Accountants N.V.
R.J. Aalberts RA

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Photographs:
Cover
Back Cover© Airbus/H. Goussé© Airbus/S. Ramadier

All rights reserved.

2014
ANNUAL REPORT

Airbus Group N.V.
Mendelweg 302333 CS Leiden
The Netherlands
Auriga Building
4, rue du Groupe d'Or - BP 90112
31703 Blagnac cedex - France

www.airbusgroup.com