(For its Full-Year 2016 financial reporting, Airbus has implemented the European Securities andMarkets Authority’s guidelines on Alternative Performance Measures. As a result, certain items will nolonger be labelled as “one-offs”. From now on such items will be labelled as “Adjustments”. Airbus will
no longer measure and communicate its performance on the basis of “EBIT*” but on the basis of“EBIT” (reported) as the difference between the two KPIs, the so called “pre-goodwill andexceptionals”, has become less relevant. There is no change to the substance of the guidance.
Terminology will change such that “EBIT* before one-offs” will be replaced by “EBIT Adjusted” and“EPS* before one-offs” will be replaced by “EPS Adjusted”. Please refer to the Glossary on page 12
for definitions of the Alternative Performance Measures.)

Airbus delivers Full-Year 2016 results in line with guidance•

Record commercial aircraft deliveries and backlog support ramp-up•

Revenues €67 bn; EBIT Adjusted €4.0 bn; EBIT (reported) €2.3 bn; EPS (reported) €1.29•

Free cash flow before M&A and customer financing € 1.4 billion•

Future earnings per share / free cash flow growth confirmed•

Proposed 2016 dividend €1.35 per share, up four percent from 2015•

A400M FY 2016 charge totals € 2.2 billion: significant EPS burden, programme remains a
concern

Amsterdam, 22 February 2017 – Airbus (stock exchange symbol: AIR) reported 2016
financial results with its guidance achieved for all key performance indicators and provided
an outlook for 2017.
“We have delivered on the commitments that we gave a year ago and achieved our guidance
and objectives, with one exception, the A400M, where we had to take another significant
charge totalling 2.2 billion euros in 2016. De-risking the programme and strengthening
programme execution are our top priorities for this aircraft in 2017,” said Tom Enders, Airbus
Chief Executive Officer. “We recorded a net book-to-bill above one in a year we delivered
more commercial aircraft than ever before. The record order backlog is supporting the rampup plans and our performance in 2016 shows we can deliver on that. We successfully
managed the ramp-up of the single-aisle and A350 programmes while at the same timetransitioning to the more efficient version of the A320. Our commercial performance inhelicopters was good despite a difficult market environment and we continued to strengthenand reshape the defence and space portfolio. We are taking additional steps to increase
efficiency through the integration project, while investments in digital transformation willfurther improve our competitiveness. Overall, the progress we made last year gives us
confidence that we have the building blocks in place to achieve our earnings and cash flow
growth potential.”
Order intake(1) in 2016 totalled € 134 billion (2015: € 159 billion), with the order book(1) valued at€ 1,060 billion as of 31 December 2016 (year-end 2015: € 1,006 billion). Net commercial aircraft
orders amounted to 731 aircraft (2015: 1,080 aircraft), including 41 A350 XWBs and 83 A330s.
The net book-to-bill ratio was above 1 while the order backlog reached a record 6,874
commercial aircraft at the end of the year. Net helicopter orders totalled 353 (2015: 333 netorders), including the H225M for Singapore and the UK Military Flying Training System contract.
Defence and Space achieved a book-to-bill above 1 with strong order momentum in military
aircraft and in satellites. Key orders included 16 C295W search and rescue planes for Canada
and the Eurofighter sustainment and support contracts.
Group revenues increased three percent to € 67 billion (2015: € 64 billion). Revenues in
Commercial Aircraft rose seven percent, reflecting the record deliveries of 688 aircraft (2015:
635 aircraft) and a favourable foreign exchange impact. Despite increased deliveries of 418
units (2015: 395 units), Helicopters’ revenues were weighed down by an unfavourable mix
and lower commercial flight hours in services. Defence and Space’s revenues decreasednine percent, reflecting a negative impact from portfolio reshaping of about € 1 billion but
were broadly stable on a comparable basis.
EBIT Adjusted – an alternative performance measure and key indicator capturing theunderlying business margin by excluding material charges or profits caused by movements inprovisions related to programmes, restructuring or foreign exchange impacts as well as
capital gains/losses from the disposal and acquisition of businesses – totalled € 3,955 million(2015: € 4,108 million).
Commercial Aircraft’s EBIT Adjusted increased to € 2,811 million (2015: € 2,766 million),reflecting higher A320 volumes and a 21% decline in research and development (R&D)
expenses due mainly to the planned R&D ramp-down on the A350. EBIT Adjusted wasPage 2 of 13

negatively impacted by the lower A330 production rate, higher A350 dilution, transition
pricing and ramp-up costs.

On the A320neo programme, 68 aircraft were delivered to 17 customers. Both engine
suppliers are committed to deliver in line with customer expectations. Challenges remain with
the A320neo ramp-up and delivery profile, which is expected to be back-loaded in 2017.
The ambitious ramp-up target was met for the A350, with 49 aircraft delivered during 2016.
Good progress was made during the year in terms of risk management and reduction of theoutstanding work in the A350 Final Assembly Line. The focus remains on recurring costconvergence as the ramp-up progresses and the situation remains challenging. The supply
chain has improved, although some bottlenecks remain, but the Company is on track to
manage the 2017 ramp-up on the way towards the production target of 10 aircraft a month by
the end of 2018. Flight testing of the A350-1000 is underway.
In Helicopters, EBIT Adjusted totalled € 350 million (2015: € 427 million), reflecting theunfavourable mix and lower commercial flight hours in services as well as the H225 accident
in Norway and some campaign costs. However, the underlying performance continues to besupported by ongoing transformation measures and strong efforts to adapt to market
challenges.
Defence and Space’s EBIT Adjusted was € 1,002 million (2015: € 1,051 million). The goodunderlying performance partially mitigated the perimeter change effect from portfolio
reshaping. It was supported by a strong contract mix and risk reduction as well as benefitsmaterialised from restructuring efforts.
On the A400M programme, deliveries increased to 17 aircraft in 2016 (2015: 11 deliveries)
with two delivered year-to-date in 2017. The propeller gearbox (PGB) crisis was addressed in
the second half of the year with the interim fix to increase the time between inspection
intervals. Capability was stepped up with the aircraft now being delivered including sometactical capability. During the second half of 2016, further challenges were encountered tomeet military capability enhancements and management reassessed the industrial cost of
the programme, now including an estimation of the commercial exposure. As a result of
these reviews a total charge of € 2.2 billion was recorded in 2016 (including € 1.2 billion inPage 3 of 13

the fourth quarter). Cash retentions by customers will continue to weigh significantly in 2017and 2018 in particular. Challenges remain on meeting contractual capabilities, securing
sufficient export orders in time, cost reduction and commercial exposure, which could besignificant. Given the size of the cumulative A400M programme loss, the Board of Directors
has mandated management to re-engage with customers to cap the remaining exposure.
Group self-financed R&D expenses declined to € 2,970 million (2015: € 3,460 million).
EBIT (reported) of € 2,258 million (2015: € 4,062 million) included Adjustments totalling a net€ -1,697 million. These Adjustments in 2016 comprised:•

A total net charge of € 2,210 million related to the A400M programme, including theincremental charge in the fourth quarter;•

A negative impact of € 930 million related to the dollar pre-delivery payment mismatchand balance sheet revaluation;•

A provision of € 182 million related to restructuring and transformation programmes;•

A net charge of € 33 million related to portfolio adjustments at Commercial Aircraft andDefence and Space;•

A net capital gain of € 1,175 million linked to the creation of Phase 2 of the Airbus Safran
Launchers Joint Venture;•A € 385 million charge on the A350 programme booked in the first half of 2016;•

A net capital gain of € 868 million booked in the first half of 2016 related to the disposal ofshares in Dassault Aviation and a mark-to-market of the remaining shares.

Net income(2) totalled € 995 million (2015: € 2,696 million) after the EBIT Adjustments. It wasalso significantly impacted by negative foreign exchange effects. Earnings Per Share were
€ 1.29 (2015: € 3.43). The finance result amounted to € -967 million (2015: € -687 million).

The Board of Directors will propose to the Annual General Meeting the payment of a 2016
dividend of € 1.35 per share on 20 April 2017 (2015: € 1.30 per share). The date of record is 19
April 2017. “We intend to honour our commitment of increasing dividend per share on asustainable basis by proposing this payment, which is about four percent higher than in 2015.
The value is outside the range of the dividend policy exceptionally. It is based on our 2016

Page 4 of 13

underlying performance and it demonstrates our confidence in our future operational cash
generation,” said Airbus Chief Financial Officer Harald Wilhelm.
Free cash flow before M&A and customer financing amounted to € 1,408 million (2015:€ 1,325 million), reflecting the strong delivery performance and cash generation potential.
Free cash flow of € 3,181 million (2015: € 2,825 million) included around € -250 million inaircraft financing. The aircraft financing environment remains healthy with a high level ofliquidity available in the market at good rates for Airbus’ product portfolio. Support did notmaterialise in the fourth quarter from European Export Credit Agencies (ECAs) but Airbus
continues to work with them to resume ECA-backed financing. Also included in the free cash
flow is € 1.2 billion in proceeds from the sale of Dassault Aviation shares and around € 750
million from the implementation of Phase 2 of the Airbus Safran Launchers JV. In addition,around € 1.7 billion were spent on shareholder returns through the Dividend payment and thefinal tranche of the Share Buyback. The net cash position on 31 December 2016 was € 11.1
billion (year-end 2015: € 10.0(3) billion) with a gross cash position of € 21.6 billion (year-end 2015:€ 19.1(3) billion).
OutlookAs the basis for its 2017 guidance, Airbus expects the world economy and air traffic to grow inline with prevailing independent forecasts, which assume no major disruptions.
Airbus’ 2017 earnings and free cash flow guidance is based on a constant perimeter:•

Airbus expects to deliver more than 700 commercial aircraft.

•

Before M&A, Airbus expects mid-single-digit percentage growth in EBIT Adjusted andEPS Adjusted compared to 2016.

•

Free cash flow is expected to be similar to 2016 before M&A and customer financing.

About Airbus
Airbus is a global leader in aeronautics, space and related services. In 2016, it generated revenues of € 67 billion
and employed a workforce of around 134,000. Airbus offers the most comprehensive range of passenger airliners
from 100 to more than 600 seats. Airbus is also a European leader providing tanker, combat, transport andmission aircraft, as well as Europe’s number one space enterprise and the world’s second largest spacebusiness. In helicopters, Airbus provides the most efficient civil and military rotorcraft solutions worldwide.

Page 5 of 13

(The legal name change to Airbus SE from Airbus Group SE is still subject to the approval of the Annual
General Meeting due to be held on 12 April 2017.)

Airbus Investor Relations contacts:
Julie KITCHER

tel. +33 5 82 05 53 01

julie.kitcher@airbus.com

Thorsten FISCHER

tel. +33 5 67 19 02 64

thorsten.t.fischer@airbus.com

Mohamed DENDEN

tel. +33 5 82 05 30 53

mohamed.denden@airbus.com

Note to editors: Digital Annual Press Conference / Live Webcast of the Analyst Conference Call
At 08:00 a.m. CET today, it is possible to follow Airbus’ first ever Digital Annual Press Conference live via:
www.airbusgroup.com/fy2016
You can also listen to the Full-Year 2016 Results Analyst Conference Call with Chief Executive Officer Tom Enders andChief Financial Officer Harald Wilhelm at 09:30 a.m. CET today (22 February) via the Airbus website:www.airbusgroup.com/fy2016. The analyst call presentation can also be found on the company website. A recording will
be made available in due course. For a reconciliation of Airbus’ KPIs to “reported IFRS” please refer to the analyst
presentation.

Page 6 of 13

Airbus – Full-Year (FY) Results 2016
(Amounts in Euro)

Airbus

FY 2016

FY 2015

ChangeRevenues, in millions

66,58164,450+3%

11,102

11,512-4%

EBIT Adjusted , in millions

3,955

4,108

-4%

EBIT (reported), in millions

2,258

4,062

-44%

2,970

3,460

-14%

995

2,696

-63%

Earnings Per Share (EPS)

1.29

3.43

-62%

Free Cash Flow (FCF), in millions

3,181

2,825

+13%

1,156

1,175

-2%

1,408

1,325

+6%

1.35

1.30

+4%

Order Intake , in millions

134,480

158,967-15%

Airbus31 Dec2016

31 Dec2015

ChangeOrder Book(1), in millions

1,060,447

1,005,864+5%39,811

38,411+4%

Net Cash position, in millions

11,113(3)

10,003+11%

Employees

133,782

136,574-2%

thereof defence, in millions

Research & Development expenses,
in millions
Net Income(2), in millions

Free Cash Flow
before M&A, in millions
Free Cash Flow before M&A
and customer financing, in millions
Dividend per share(4)(1)

thereof defence, in millions

For footnotes please refer to page 13.

Page 7 of 13

by Division

Revenues

EBIT (reported)(Amounts in millions of Euro)

FY
2016

FY
2015

Change

FY
2016

FY
2015

ChangeCommercial Aircraft

49,23745,854

+7%

1,543

2,287

-33%

Helicopters

6,652

6,786

-2%

308

427

-28%

Defence and Space
Headquarters /Eliminations

11,85413,080

-9%

-93

736

-

-1,162-1,270

-

500

612

-

Total

66,58164,450

+3%

2,258

4,062

-44%

by Division

EBIT Adjusted(Amounts in millions of Euro)

FY
2016

FY
2015

ChangeCommercial Aircraft

2,811

2,766

+2%

Helicopters

350

427

-18%

Defence and Space
Headquarters /Eliminations

1,002

1,051

-5%

-208

-136

-

Total

3,955

4,108

-4%

Order Intake (1)by Division

Order Book (1)

FY
2016

FY
2015

Change31 Dec2016

31 Dec2015

ChangeCommercial Aircraft

114,938

139,062-17%

1,010,200

952,450+6%

Helicopters

6,057

6,168

-2%

11,26911,769-4%

Defence and Space
Headquarters /Eliminations

15,393

14,440+7%41,49942,861-3%-1,908-703--2,521-1,216-

Total

134,480

158,967-15%

1,060,447

1,005,864+5%(Amounts in millions of Euro)For footnotes please refer to page 13.

Page 8 of 13

Airbus – Fourth Quarter Results (Q4) 2016
(Amounts in Euro)

Airbus

Q4 2016

Q4 2015

ChangeRevenues, in millions

23,87621,485+11%

EBIT Adjusted, in millions

1,547

1,328

+16%

EBIT (reported), in millions

-98

1,140

-

(2)

Net Income , in millions

-816

796

-

Earnings Per Share (EPS)

-1.06

1.02

-

by Division

Revenues

EBIT (reported)(Amounts in millions of Euro)

Q4
2016

Q4
2015

Change

Q4
2016

Q4
2015

ChangeCommercial Aircraft

17,726

14,735

+20%

770

398

+93%

Helicopters

2,370

2,363

0%

108

186

-42%

Defence and Space
Headquarters /Eliminations

4,140

4,697

-12%

-672

596

-

-360

-310

-

-304

-40

-

Total

23,87621,485

+11%

-98

1,140

-

by Division

EBIT Adjusted(Amounts in millions of Euro)

Q4
2016

Q4
2015

ChangeCommercial Aircraft

975

553

+76%

Helicopters

150

186

-19%

Defence and Space
Headquarters /Eliminations

566

629

-10%

-144

-40

-

1,547

1,328

+16%

Total

For footnotes please refer to page 13.

Page 9 of 13

Q4 2016 revenues increased by 11 percent, driven by the strong delivery performance in
Commercial Aircraft but were weighed down by the perimeter change in Defence and Space.
Q4 2016 EBIT Adjusted increased by 16 percent, supported by the strong increase inCommercial Aircraft which mainly reflected an R&D tailwind, favourable volume, transition
pricing and ramp-up costs.
Q4 2016 EBIT (reported) decreased to € -98 million. It mainly reflects negative adjustmentsof € -1.6 billion booked in Q4 related to a net incremental A400M charge of € -1.2 billion,
approximately € -200 million related to the impact from foreign exchange resulting from thedollar pre-delivery payment mismatch and balance sheet revaluation and a net restructuringprovision of € -182 million
In addition, the Q4 2016 net income was significantly impacted by negative foreignexchange effects in the other financial result

Page 10 of 13

EBIT (reported) / EBIT Adjusted Reconciliation
The table below reconciles EBIT (reported) with EBIT Adjusted.

Airbus

FY 2016

FY 2015

ChangeEBIT (reported), in millions

2,258

4,062

-44%

A400M business update, in millions$ PDP mismatch / Balance Sheet
revaluation, in millions
Restructuring/Transformation, in
millions
Portfolio in Defence and Space
and Commercial Aircraft, in millions
Airbus Safran Launchers JVcreation Phase 2, in millions
A350 business update, in millions
Dassault Aviation disposal, in
millions
EBIT Adjusted, in millions-2,210

-290

-930

-635

-

-182

41

-

-33

90

-

1,175

-

-

-385

-

868

748

+16%

3,955

4,108

-4%

Reconciliation of EBIT (reported), EBIT Adjusted and EBIT* before one-offs

Airbus

FY 2016

FY 2015

ChangeEBIT* before one-offs, in millions

3,999

4,132

-3%

Exceptionals, in millions

-44

-24

-

EBIT Adjusted, in millions

3,955

4,108

-4%

Adjustments, in millions-1,697-46-

EBIT (reported), in millions

2,258

4,062

-44%

Page 11 of 13

Glossary
KPI
EBIT

DEFINITION
The Company 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.

Adjustments

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

EBIT Adjusted

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

EPS Adjusted

EPS Adjusted is an alternative performance measure of a basic earnings per share asreported whereby the net income as the numerator does include Adjustments. For
reconciliation, see slide 23 of the Analyst presentation.

Gross cash

The Company defines its consolidated gross cash position as the sum of (i) cash and cash

positionequivalents and (ii) securities (as all recorded in the consolidated statement of financial
position).

Net cash

For definition of the alternative performance measure net cash position, see Registration

position

Document, MD&A section 2.1.6.

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 which allows the Company to measure
the amount of cash flow generated from operations after cash used in investing activities.

FCF before M&AFree cash flow before mergers and acquisitions refers to free cash flow as defined in theRegistration Document, MD&A section 2.1.6.1 adjusted for net proceeds from disposals andacquisitions. It is an alternative performance measure and indicator that is important inorder to measure FCF excluding those cash flows from the disposal and acquisition ofbusinesses.

FCF before M&AFree cash flow before M&A and customer financing refers to free cash flow before mergers

and customer

and acquisitions adjusted for cash flow related to aircraft financing activities. It is anfinancingalternative performance measure and indicator that may be used from time to time by theCompany in its financial guidance, esp. when there is higher uncertainty around customer
financing activities, such as during the suspension of ECA financing support.

Page 12 of 13

Footnotes:
1)

Contributions from commercial aircraft activities to Order Intake and Order Book based on list
prices.

2)

Airbus continues to use the term Net Income. It is identical to Profit for the period attributable toequity owners of the parent as defined by IFRS Rules.

3)

Excluding the reclassification of certain securities.

4)

To be proposed to the Annual General Meeting 2017.

Safe Harbour Statement:
Certain statements contained in this press release are not historical facts but rather are statements of future
expectations and other forward-looking statements that are based on management’s beliefs. These statements
reflect Airbus Group’s views and assumptions as of the date of the statements and involve known and unknown
risk and uncertainties that could cause actual results, performance or events to differ materially from thoseexpressed or implied in such statements.
When used in this press release, words such as “anticipate”, “believe”, “estimate”, “expect”, “may”, “intend”, “planto” and “project” are intended to identify forward-looking statements.
This forward looking information is based upon a number of assumptions including without limitation: assumption
regarding demand, current and future markets for Airbus Group’s products and services, internal performance,
customer financing, customer, supplier and subcontractor performance or contracts negotiations, favourable
outcomes of certain pending sales campaigns. Forward looking statements are subject to uncertainty and actual
future results and trends may differ materially depending on variety of factors including without limitation: general
economic and labour conditions, including in particular economic conditions in Europe, North America and Asia,
legal, financial and governmental risk related to international transactions, the cyclical nature of some of Airbus
Group’s businesses, volatility of the market for certain products and services, product performance risks,collective bargaining labour disputes, factors that result in significant and prolonged disruption to air travelworldwide, the outcome of political and legal processes, including uncertainty regarding government funding ofcertain programs, consolidation among competitors in the aerospace industry, the cost of developing, and thecommercial success of new products, exchange rate and interest rate spread fluctuations between the euro andthe U.S. dollar and other currencies, legal proceeding and other economic, political and technological risk anduncertainties. Additional information regarding these factors is contained in the Company’s “Registration
Document” dated 5 April 2016. For more information, please refer to www.airbusgroup.com

Page 13 of 13