AIRBUS
9m Results
2018

31 October 2018

Harald Wilhelm
Chief Financial Officer

SAFE HARBOUR STATEMENT2DISCLAIMER
This presentation includes forward-looking statements. Words such as “anticipates”, “believes”, “estimates”, “expects”, “intends”, “plans”, “projects”, “may” and similar
expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements made about strategy, ramp-up anddelivery schedules, introduction of new products and services and market expectations, as well as statements regarding future performance and outlook.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could
cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
These factors include but are not limited to:Changes in general economic, political or market conditions, including the cyclical nature of some of Airbus’ businesses;
Significant disruptions in air travel (including as a result of terrorist attacks);
Currency exchange rate fluctuations, in particular between the Euro and the U.S. dollar;
The successful execution of internal performance plans, including cost reduction and productivity efforts;
Product performance risks, as well as programme development and management risks;
Customer, supplier and subcontractor performance or contract negotiations, including financing issues;Competition and consolidation in the aerospace and defence industry;
Significant collective bargaining labour disputes;
The outcome of political and legal processes including the availability of government financing for certain programmes and the size of defence and spaceprocurement budgets;
Research and development costs in connection with new products;
Legal, financial and governmental risks related to international transactions;
Legal and investigatory proceedings and other economic, political and technological risks and uncertainties.
As a result, Airbus’ actual results may differ materially from the plans, goals and expectations set forth in such forward-looking statements.
For a discussion of factors that could cause future results to differ from such forward-looking statements, see the Airbus “Registration Document” dated 28 March 2018,
including the Risk Factors section.
Any forward-looking statement contained in this presentation speaks as of the date of this presentation. Airbus undertakes no obligation to publicly revise or update any
forward-looking statements in light of new information, future events or otherwise.
Rounding disclaimer:
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
IFRS 15 Disclaimer:
The Company has adopted the IFRS 15 standard as of 1st January 2018. 2017 figures are pro forma, amended with IFRS15 restatements and new segment reporting.

9m Results
2018

Company
Highlights

Divisional
Highlights

Guidance
Highlights

9M 2018 HIGHLIGHTS

Focus on deliveries and securing ramp-up
9m financials reflect A350 performance and aircraft delivery profile
2018 Guidance updated to reflect latest delivery outlook
Progress in management succession4

9M 2018 COMMERCIAL POSITIONING
Consolidated Airbus Order Book
by Division

5

Consolidated Airbus
External Revenue
by Division
9m 2018
17%

Airbus(in units)

Helicopters(in € m)Defence and Space(in € m)Order Intake (net)256

Order book

7,383

Order Intake (net)

3,523

Order book

12,594

Order Intake (net)

4,988

Order book

35,8809%€ 40.4 bn
t/o defence € 6 bn

74%

▪ Airbus▪ Helicopters▪ Defence and SpaceAIRBUS: 311 gross orders; 256 net orders; Backlog: 7,383 a/c
HELICOPTERS: 230 net orders for € 3.5 bn, including 6 H225 and 36 H145 in Q3
DEFENCE AND SPACE: Order Intake € 5.0 bn supported by Heron TP drones for Germany

2018 figures include A220, consolidated into Commercial Aircraft as of July 1st

9M 2018 FINANCIAL PERFORMANCE

6

Revenues

EBIT Adjusted

in € bnin € bn / RoS (%)
6.8%

40.4

38.0

3.2%

2.7

1.2

9m 20179m 20189m 20179m 2018

EPS(1) Adjusted

FCF before M&A and Customer Financing

in €in € bn

2.31
0.84
9m 20179m 2018(3.3)

9m 2017(1) 9m 2018 Average number of shares: 774,762,268 compared to 773,574,878 in 9m 2017
Capitalised R&D: € 61 m in 9m 2018 and € 203 m in 9m 20172018 figures include A220, consolidated into Commercial Aircraft as of July 1st2017 figures are amended with IFRS15 restatements(4.2)

9m 2018

9M 2018 PROFITABILITY

7

EBIT Performancein € bn

9m 2018 EBIT Reported of € 2.7 bn
9m 2018 Adjustments resulting from:€ - 105m A400M provision

2.7

2.7
1.7

1.2

€ -

23m First H160s€ - 109m Compliance / Others

EBIT Adjusted

EBIT Reported

9m 2017€ +26m PDP mismatch / BS revaluation€ + 156m Airbus DS Capital Gain

9m 2018€ -55m Net Adjustments

EPS Performancein €9m 2018 Net Income of € 1,453 m
2.31
1.81

1.88

9m 2018 Net Income Adjusted of € 1,792 m
9m 2018 tax rate on core business is 28%

0.84
EPS Adjusted
9m 2017EPS Reported
9m 2018

Average number of shares: 9m 2018 = 774,762,268 ; 9m 2017 = 773,574,878
2018 figures include A220, consolidated into Commercial Aircraft as of July 1st2017 figures are amended with IFRS15 restatements

CURRENCY HEDGE POLICY

8

IN $ BILLION

2.7▪ Forward Sales as of September 2018
▪ Collars as of September 2018
▪ Forward Sales and Collars as of Dec. 2017

4.6

17.7
1.7
23.1

21.1
15.3

8.8

Average hedge rates€ vs $
Forwards/Collars (2)£ vs $

2018

6.8

2022

2019

2020

2021

1.20

1.24

1.23

1.24

1.27

( 1.25 in Dec. 17 )( 1.24 in Dec. 17 )( 1.22 in Dec. 17 )( 1.23 in Dec. 17 )( 1.24 in Dec. 17)

1.48

1.45

1.37

1.36

1.36

remaining 3 months

and beyond

Mark-to-market value incl. in AOCI = € - 0.5 bn
Closing rate @ 1.16 € vs. $In 9m 2018, $ 13.2 bn (1) of new Forwards were added at an average rate of € 1 = $ 1.26
$ 17.7 bn (1) of hedges matured at an average rate of € 1 = $ 1.26
Hedge portfolio (1) 30 September 2018 at $ 84.1 bn (vs. $ 88.7 bn in Dec. 2017), at an average rate of $ 1.23 (2)In 9m, $ 3.6 bn of hedges rolled-over intra-year in 2018 to align with backloaded delivery profile
2018 figures include A220, consolidated into Commercial Aircraft as of July 1st
Approximately 60% of Airbus US$ revenues are naturally hedged by US$ procurement. Graph shows US$ Forward Sales and Collars(1) Total hedge amount contains $/€ and $/£ designated hedges; (2) Blended Forwards and Collars rate includes Collars at least favourable rate

9M 2018 CASH EVOLUTION

9IN € BILLION

2.5

0.4

-5.7
-1.2

13.4

-1.2

Free Cash Flow incl. A220 before M&A : € - 4.3 bn
t/o Customer Financing: € - 0.2 bn-1.1

Free Cash Flow before M&A andCustomer Financing € - 4.2 bn

NetCashCashNet
position
Dec.
position
2016
Dec.
2017

Gross Cash Flow
Change in (3) Cash used forfrom Operations Working Capital
investingactivities before
M&A(1)

7.2

M&A(2)

Shareholder
Shareholder
ReturnReturns

Pension funding of € 1.0 bn in Q3
Early debt repayments of € 1.6 bn, no impact to net cash
Net cash impact of A220 integration covered by C-SALP funding agreement
2018 figures include A220, consolidated into Commercial Aircraft as of July 1st(1) Thereof Capex of € - 1.4 bn; (2) M&A transactions include acquisitions and disposals of subsidiaries and businesses(3) Thereof Customer Financing of € - 0.2 bn; (4) Including C-Series A/C Ltd. Partnership (C-SALP) funding arrangement

Pensions &Others (4)Net Cashposition
Sep.2018

9m Results
2018

Company
Highlights

Divisional
Highlights

Guidance
Highlights

11

IN € MILLION

9m 20189m 2017

ChangeDeliveries by Programme (units)
2%

256

271

-5.5%

7,383

6,691

10.3%

503

454(1)

10.8%

Revenues

30,47827,57910.5%

R&D Expenses

1,456

1,303

4.8%

4.7%

2,340

806

7.7%

2.9%

2,238

779

7.3%

2.8%

Order Intake (net)
Units
Order book

Deliveries (Units)

in % of Revenues

EBIT Adjusted
in % of Revenues

EBIT
in % of Revenues

11.7%

2%

12%
6%

78%

▪ A220▪ A320▪ A350▪ A330▪ A380External Revenue Split
190.3%
7%

187.3%

Airbus combines former Commercial Division and HQ function, excluding Transversal activities
9m 2018 figures include A220
93%

▪ Platforms ▪ Services
Revenues and EBIT Adjusted reflect the backloaded delivery profile
A320neo: 222 a/c delivered in 9m. Ramp up on-going, challenges remain
A330neo: EASA certification, first delivery targeted Q4
EBIT Adjusted reflects A350 progress and higher deliveries(1) 452 a/c with Revenue Recognition (2 A330 on Operating Lease)
Capitalised R&D: € 36 m in 9m 2018 and € 97 m in 9m 20172018 figures include A220, consolidated into Commercial Aircraft as of July 1st2017 figures are pro forma, amended with IFRS15 restatements and new segment reportingHELICOPTERS
IN € MILLION
Order Intake (net)12

9m 20189m 2017

Change

230

210

9.5%

704

710

-0.8%

External Revenue Split

Units
Order book

3,523

4,729

-25.5%

12,594

11,636

8.2%

218

266

-18.0%

3,755

4,197

-10.5%

R&D Expenses

214

205

in % of Revenues

5.7%

4.9%

Order Intake (net)

47%

53%

Value
Order Book

Deliveries (Units)
Revenues

EBIT Adjusted

202

161

in % of Revenues

5.4%

3.8%

EBIT

179

161

in % of Revenues

4.8%

3.8%

▪ Defence

4.4%▪ Civil

44%
56%

25.5%
11.2%

Revenues stable on a comparable basis
Perimeter change impact on Revenues ~ € 450 m from sale of Vector Aerospace

EBIT Adjusted reflects solid underlying programme execution

Capitalised R&D: € 16 m in 9m 2018 and € 89 m in 9m 20172017 figures are pro forma, amended with IFRS15 restatements and new segment reporting (except for Order Intake and Order Book)▪ Platforms ▪ Services

DEFENCE AND SPACE
IN € MILLION

139m 20189m 2017(1)ChangeOrder Intake (net)

4,988

5,714

-12.7%

Order Book

35,88038,551-6.9%

External Revenue Split

33%

67%

7,051

7,052

R&D Expenses

219

220

in % of Revenues

3.1%

3.1%

EBIT Adjusted

409

397

in % of Revenues

5.8%

5.6%

EBIT

479

889

in % of Revenues

6.8%

12.6%

Revenues

0.0%▪ Platforms ▪ Services

-0.5%
3.0%

23%

28%

-46.1%

49%▪ Space Systems ▪ Military Aircraft(2)
Revenues and EBIT Adjusted reflect stable core business & solid programme execution ▪ CIS & Others
Perimeter change impact on Revenues ~ € 190 m

Net Capital Gains from disposals: 9M 2018 € 156 m, 9M 2017 € 623 m
A400M: 12 a/c delivered in 9M 2018, € 105 m provision update mainly for escalation(1) 2017 IFRS 15 restatements updated for Q3/Q4 phasing. No impact on FY 2017 restatements(2) Communications, Intelligence, & Security
Capitalised R&D: € 9 m in 9m 2018 and € 17 m in 9m 20172017 figures are pro forma, amended with IFRS15 restatements and new segment reporting (except for Order Intake and Order Book)

9m Results
2018

Company
Highlights

Divisional
Highlights

Guidance
Highlights

2018 GUIDANCEAs the basis for its 2018 guidance, Airbus expects the world economy and air traffic to grow in linewith prevailing independent forecasts, which assume no major disruptions
Airbus 2018 Earnings and guidance are prepared under IFRS 15
Airbus 2018 Earnings and FCF guidance is before M&A. It now includes the A220 integration
Airbus targets to deliver around 800 commercial aircraft in 2018, now including around 18 A220
aircraft and the updated commercial aircraft delivery scheduleOn that basis:
Before M&A, Airbus maintains expected EBIT Adjusted of approximately € 5 bn in 2018
This includes a lower expected reduction in EBIT Adjusted from A220 than estimated in H1
Airbus expects Free Cash Flow before M&A and Customer Financing to be lower than the2017 level of € 2.95 bn. This also reflects an expected reduction of approximately € -0.3bn
from A220
In 2018, Airbus expects the net cash impact of the A220 integration to be largely covered by
the funding arrangement as laid out in the terms of the C-Series A/C Ltd. Partnership,
meaning limited cash dilution

15

WRAP UP
Focus on 2018 deliveries
Preparing the future:− Ramp up− Innovation− Management transition
EPS / FCF growth16

9m Results
2018

Appendix

EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $18

Active exposure management

1.36
1.34

Average
Hedge Rates

1.33

1.32
1.30

1.31

1.27

1.26

1.25
1.27

1.22
1.20
1.20

1.18
1.18

1.16
Q1

1.29

FY 2018E

1.24

1.29

1.28

1.24

FY 2017

(1)

Q2

Q3

2018 EFY 20172018 figures include A220, consolidated into Commercial Aircraft as of July 1st(1) Q3 actualQ4

9M 2018 DETAILED INCOME STATEMENT AND ADJUSTMENTS
IN € MILLION

19

thereof Adjustments
Impact on EBIT

9m 2018

2,683

EBIT

Operational

FX

AirbusDefence andSpace (1)

Helicopters

(109)

51

(23)

Financial
Result9m 2018
Adjusted

Airbus & ADS (2)

2,738

26

in % of revenues

6.6%

6.8%

Interest income

144

144

Interest expenses

(367)

(367)

Other Financial Result

(190)

(154)

(36)

Finance Result

(413)

(154)

(259)

Income before taxes

2,270

(154)

2,479

Non-controlling interest

7

7

Net Income reported

1,453

1,792

774,762,268

774,762,268

1.88

2.31

Number of shares

EPS reported (in €)

(109)

51

(23)

26

Net Income Adjusted excludes the following items:
Adjustments impacting the EBIT line (as reported in the EBIT Adjusted)
The Other Financial Result, except for the unwinding of discount on provisions
The tax effect on Adjusted Income before taxes is calculated at 28%. The effective tax rate on Income before taxes is 36%
2018 figures include A220, consolidated into Commercial Aircraft as of July 1st(1) Thereof € - 105 m A400M provision update mainly for escalation, € + 156 m net capital gains from disposals(2) Thereof € + 7 m Airbus, € + 19 m ADS

9M 2017 DETAILED INCOME STATEMENT AND ADJUSTMENTS
IN € MILLION

20

thereof Adjustments
Impact on EBIT

9m 2017

Operational

FX

Defence and Space (1)Airbus& ADS (2)422

43Financial
Result9m 2017
Adjusted

EBIT

1,673

in % of revenues

4.4%

3.2%

Interest income

134

134

Interest expenses

(385)

(385)

Other Financial Result

352

403

(51)

Finance Result

101

403

(302)

Income before taxes

1,774

403

906

Non-controlling interest

00

Net Income reported

1,398

651

773,574,878

773,574,878

1.81

0.84

Number of shares

EPS reported (in €)422

Net Income Adjusted excludes the following items:
Adjustments impacting the EBIT line (as reported in the EBIT Adjusted)
The Other Financial Result, except for the unwinding of discount on provisions
The tax effect on Adjusted Income before taxes is calculated at 28%
2017 figures are amended with IFRS15 restatements(1) Thereof € + 604 m Defence Electronics net capital gain, € + 19 m Other AD portfolio, € - 201 m A400M LMC(2) Thereof € - 27 m Airbus, € + 70 m ADS

43

1,208

Q3 2018 KEY FIGURES

21

IN € MILLION

Q3 2018

Q3 2017(1)Revenues

15,451

12,832

EBIT Adjusted

1,576

655

EBIT

1,563

462

Net Income

957

307

FCF before M&A(273)(1,234)

FCF before M&A and Customer Financing(201)(1,251)IN € MILLION

Q3 2018

Q3 2017

Revenues

Q3 2018

Q3 2017

EBIT Adjusted

Q3 2018

Q3 2017

EBIT

Airbus11,932

9,397

1,473

549

1,465

398

Helicopters

1,367

1,481

67

81

65

81

Defence and Space(1)

2,399

2,152

100

99

97

57

Transversal & Elim.

(247)

(198)

(64)

(74)

(64)

(74)

Consolidated Airbus(1)15,451

12,832

1,576

655

1,563

462

(1) 2017 IFRS 15 restatements updated for Q3/Q4 phasing. No impact on FY 2017 restatements
2018 figures include A220, consolidated into Commercial Aircraft as of July 1st2017 figures are pro forma, amended with IFRS15 restatements and new segment reportingAIRBUS: STRONG LIQUIDITY POSITION AS OF 30 SEPTEMBER 2018
€ 3.0 bn

22

Credit Facility:

Credit Facility (RSCF)▪ Maturity 2021, undrawn▪ Fully committed by 40 banks▪ No financial covenants, no MAC clause€ 11.1 bn
Financing Liabilities

Financing Liabilities:of which long-term : €7.5 bn▪ Includes € 3.0 bn EMTN, € 0.5 bn Convertible

Bond, € 1.1 bn exchangeable bond and $ 2.5 bn
USD 144A/RegS€ 18.3 bn
Total Gross CashInvested in highly rated securities

Credit Ratings:€ 7.2 bn
Net Cash

Short-term rating:▪ S & P:
A-1+
▪ Moody´s:
P-1
Long-term rating:▪ S & P:
A+ stable▪ Moody’s:
A2 stable

DETAILED FREE CASH FLOWIN € MILLION

23
9m 20189m 2017

Net Cash position at the beginning of the period

13,39011,113Gross Cash Flow from Operations (1)

2,517

1,856

Change in working capital(5,687)(4,400)Cash used for investing activities (2)

(758)

(664)

of which Industrial Capex (additions) (3)(1,378)(1,655)

Free Cash Flow (4) (5)(3,928)(3,208)414

573

Free Cash Flow before M&A(4,342)(3,781)of which Customer Financing

(173)

(437)

(4,169)(3,344)

Change in capital and non-controlling interests

112

79

Change in treasury shares / share buyback

(52)

0

(1,152)(171)(1,161)(1,047)

(21)

(48)

7,188

6,718

of which M&AFree Cash Flow before M&A and Customer Financing

Contribution to plan assets of pension schemes
Cash distribution to shareholders / non - controlling interests
Others(6)

Net cash position at the end of the period

2018 figures include A220, consolidated into Commercial Aircraft as of July 1st2017 figures are amended with IFRS15 restatements(1) Excluding working capital change, contribution to plan assets of pension schemes and realised FX results on Treasury swaps(2) Excluding change in securities and change in cash from changes in consolidation and excluding bank activities; (3) Excluding leased and financial assets; (4) Excluding change insecurities, change in cash from changes in consolidation, contribution to plan assets, realised FX results on Treasury swaps and bank activities(5) Including A220 integration ; (6) Including C-Series A/C Ltd. Partnership (C-SALP) funding arrangement

NET CASH POSITIONIN € MILLION

24
Sept. 2018

Dec. 201718,32524,587(11,137)(11,197)

Short-term Financing Debts(3,638)(2,213)Long-term Financing Debts(7,499)(8,984)

7,188

13,390

35

29

7,223

13,419Gross Cash
Financing Debts

Reported Net Cash
Airbus non-recourse debt
Net Cash excl. non-recourse

2018 figures include A220, consolidated into Commercial Aircraft as of July 1st2017 figures are amended with IFRS15 restatements

CUSTOMER FINANCING EXPOSURE
IN € MILLION

25

Sept. 2018

Dec. 2017

AirbusSept. 2018

Dec. 2017

Helicopters

Closing rate € 1 =

$1.16

$1.20

$ 1.16$ 1.20Total Gross Exposure

1,067

1,264

143

135

of which off-balance sheet

29

144

14

4

Estimated value of collateral

(814)

(953)

(58)

(64)

Net Exposure

253

311

85

71

Provision and asset impairment

(253)

(311)

(85)

(71)

0

0

0

0

Net Exposure after provision2018 figures include A220, consolidated into Commercial Aircraft as of July 1st

AIRBUS CUSTOMER FINANCING
IN € BILLION

Additions
0.8

Airbus Customer
Financing Gross
Exposure

0.3

26

Sell Down

0.6

0.8

0.4

Amortization

Net change

1.0
0.5

0.6

0.9

0.8

0.6

0.7
0.1

(0.2)
(0.3)
(1.1)
(2.2)

(0.1)

(0.2)
(0.1)

(0.1)

(0.7)

(0.7)

(0.2)

(0.1)

(0.1)

(0.7)

(0.7)

(0.5)

(0.6)

(0.7)
(0.2)

(0.1)
(0.2)

(0.3)
(0.1)

(0.1)

(0.1)

(0.2)

Gross Exposurein $ bn

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

9m 2018

1.8

1.5

1.5

1.8

1.7

1.4

1.5

1.6

1.3

1.5

1.7

1.5

1.2

Net Exposure fully provisioned

Net Exposure
Gross
Exposure€ 1.1 bn($ 1.2 bn)€ 0.3 bn)
Estimated
Collateral

Net Exposure fully provisioned

Net Exposure
Gross
Exposure€ 1.3 bn($ 1.5 bn)€ 0.8 bn($ 0.9 bn)€ 0.3 bn
Estimated
Collateral€ 1.0 bn($ 1.1 bn)

30 September 201831 December 2017€/$ = 1.16€/$ = 1.20

2018 figures include A220, consolidated into Commercial Aircraft as of July 1st

BALANCE SHEET HIGHLIGHTS: ASSETSIN € MILLION

27

Sept. 2018

Dec. 2017

Non-current Assets

57,52753,526of which Intangible & Goodwill

16,988

11,629of which Property, plant & equipment

16,65916,611of which Investments & Financial assets

5,768

5,821

of which positive hedge mark-to-market

1,598

2,901

of which Non-current securities

10,321

10,944Current Assets

58,48457,346of which Inventory

35,052

29,737of which Cash

5,603

12,016of which Current securities

2,401

1,627

of which positive hedge mark-to-market

467

663

Assets of disposal groups classified as held for sale

35

202

116,046

111,074

1.16

1.20

Total Assets

Closing rate € vs. $2018 figures include A220, consolidated into Commercial Aircraft as of July 1st2017 figures are amended with IFRS15 restatements

BALANCE SHEET HIGHLIGHTS: LIABILITIESIN € MILLION

28

Sept. 2018

Dec. 2017

9,526

10,742of which OCI (Other Comprehensive Income)

944

2,742

of which Non-controlling interests(5)2

Non-current liabilities

44,90942,162of which pensions

7,452

8,025

of which other provisions

4,094

1,754

of which financing debts

7,499

8,984

of which European governments refundable advances

5,752

5,537

of which Customer advances

15,895

16,659977

1,127

Current liabilities

61,61158,064of which pensions

225

336

of which other provisions

5,285

5,936

of which financing debts

3,638

2,213

319

364

of which Customer advances

34,95430,921of which negative hedge mark-to-market

1,434

1,144

Total Equityof which negative hedge mark-to-market

of which European governments refundable advances

106

Liabilities of disposal groups classified as held for sale
Total Liabilities and Equity
2018 figures include A220, consolidated into Commercial Aircraft as of July 1st2017 figures are amended with IFRS15 restatements

116,046

111,074SHAREHOLDING STRUCTURE AS AT 30 SEPTEMBER 201829

Free Float

73.6%

Shareholder Agreement

26.3%

SOGEPA

11.1%

GZBV

11.0%

SEPI

4.2%

Treasury Shares

0.1%

0.1%
4.2%
11.0%

11.1%

73.6%

775,873,527 shares issued as at 30 September 20182018 figures include A220, consolidated into Commercial Aircraft as of July 1 stQUARTERLY REVENUES BREAKDOWN (CUMULATIVE)
IN € MILLION

Q1

H1

30
9m

FY

2018

2017

2018

2017

2018

2017

7,222

8,166

18,54618,18230,47827,57943,486

961

1,176

2,388

2,716

3,755

4,197

6,335

Defence and Space(1)

2,217

2,340

4,652

4,900

7,051

7,052

10,596

Transversal & Elim.

(281)

(240)

(616)

(623)

(863)

(821)

(1,395)

Consolidated Airbus

10,11911,442

24,97025,17540,421

38,007

AirbusHelicopters

2018

2017

(1)

(1) 2017 IFRS 15 restatements updated for Q3/Q4 phasing. No impact on FY 2017 restatements
2018 figures include A220, consolidated into Commercial Aircraft as of July 1st
Helicopters and Defence and Space figures reflect perimeter change impact
2017 figures are pro forma, amended with IFRS15 restatements and new segment reporting(1)

59,022

QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE)
IN € MILLION

Q1

H1

31

9m

FY

2018

2017

2018

2017

2018

2017

2018

2017

Airbus

(41)

(103)

867

257

2,340

806

2,383

Helicopters

(3)

(6)

135

80

202

161

247

Defence and Space(1)

112

118

309

298

409

397

815

Transversal & Elim.

(54)

(28)

(149)

(82)

(213)

(156)

(255)

Consolidated Airbus

14

(19)

1,162

553

2,738

1,208

(1)

(1) 2017 IFRS 15 restatements updated for Q3/Q4 phasing. No impact on FY 2017 restatements
2018 figures include A220, consolidated into Commercial Aircraft as of July 1st
Helicopters and Defence and Space figures reflect perimeter change impact
2017 figures are pro forma, amended with IFRS15 restatements and new segment reporting

(1)

3,190

QUARTERLY EBIT BREAKDOWN (CUMULATIVE)
IN € MILLION

Q1

32

H1

9m

FY

2018

2017

2018

2017

2018

2017

2018

2017

Airbus

(2)

(48)

773

381

2,238

779

2,257

Helicopters

(10)

(6)

114

80

179

161

247

Defence and Space(1)

265

657

382

832

479

889

462

Transversal & Elim.

(54)

(28)

(149)

(82)

(213)

(156)

(301)

Consolidated Airbus

199

575

1,120

1,211

2,683

1,673

(1)

(1) 2017 IFRS 15 restatements updated for Q3/Q4 phasing. No impact on FY 2017 restatements
2018 figures include A220, consolidated into Commercial Aircraft as of July 1st
Helicopters and Defence and Space figures reflect perimeter change impact
2017 figures are pro forma, amended with IFRS15 restatements and new segment reporting

(1)

2,665

9M 2018 IFRS VS. APM CASH FLOW RECONCILIATIONIN € MILLION

9m 2018IN € BILLION

33
9m 2018

Cash provided by (used for) operating activities(4,326)

Cash provided by (used for) operating activities

t/o Reimbursement from / contribution to plan assets(1,152)

Cash provided by (used for) investing activities(951)

t/o Net proceeds (payment)

(17)

(4)

t/o Treasury swaps
t/o Change in working capital
Gross Cash Flow from Operations(1)(4,326)(5,687)

Others

1,332

2,517

Free Cash Flow (1)(3,928)t/o M&A transactions

414

Free Cash Flow before M&A (1)t/o Customer Financing
FCF before M&A and Customer Financing (1)As of 1 July 2018, A220 consolidated into Commercial Aircraft.
(1) Including A220 integration - Net cash impact of A220 integration covered by C-SALP funding agreement(4,342)(173)(4,169)

GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM)

34

The following Presentation also contains certain “non-GAAP financial measures”, i.e. financial measures that either exclude or include amounts that are notexcluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. For example, Airbus makes use of the nonGAAP measures “EBIT Adjusted”, “EPS Adjusted” and “Free Cash Flow”.
Airbus uses these non-GAAP financial measures to assess its consolidated financial and operating performance and believes they are helpful in identifying
trends in its performance. These measures enhance management’s ability to make decisions with respect to resource allocation and whether Airbus is meeting
established financial goals.
Non-GAAP financial measures have certain limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of Airbus’
results as reported under IFRS. Because of these limitations, they should not be considered substitutes for the relevant IFRS measures.
▪

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

▪

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

▪

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

▪

EPS Adjusted is an alternative performance measure of a basic EPS as reported whereby the net income as the numerator does include Adjustments. For
reconciliation see slide 19.

▪

Gross Cash position: Airbus defines its consolidated gross cash position as the sum of (i) cash and cash equivalents and (ii) securities (all as recorded in
the consolidated statement of financial position).

▪

Net cash position: Airbus defines its consolidated net cash position as the sum of (i) cash and cash equivalents and (ii) securities, minus (iii) financing
liabilities (all as recorded in the consolidated statement of financial position) as defined in MD&A section 2.1.6.

▪

Gross cash flow from operations: Gross cash flow from operations is an alternative performance measure and an indicator used by Airbus to measure its
operating cash performance before changes in working capital. It is defined in Registration Document, MD&A section 2.1.6 as cash provided by operating
activities, excluding (i) changes in other operating assets and liabilities (working capital), (ii) contribution to plan assets of pension schemes and (iii) realised
foreign exchange results on Treasury swaps.

▪

Change in working capital: it is identical to changes in other operating assets and liabilities as defined by IFRS Rules. It is comprised of inventories, tradereceivables, other assets and prepaid expenses netted against trade liabilities, other liabilities (including customer advances), deferred income andcustomer financing.

▪

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

▪

FCF before M&A refers to FCF as defined in the Registration Document, MD&A section 2.1.6.1. adjusted for net proceeds from disposals and acquisitions.
It is an alternative performance measure and indicator that is important in order to measure FCF excluding those cash flows from the disposal andacquisition of businesses.

▪

FCF before M&A and Customer Financing refers to free cash flow before mergers and acquisitions adjusted for cash flow related to aircraft financing
activities. It is an alternative performance measure and indicator that may be used from time to time by the Company in its financial guidance, esp. when
there is higher uncertainty around customer financing activities, such as during the suspension of ECA financing support.