31 July 2019

Guillaume Faury|

Chief Executive Officer

Dominik Asam|

Chief Financial Officer

SAFE HARBOUR STATEMENTDISCLAIMER

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 and delivery schedules, introduction of new products and services and market expectations,as well as statements regarding future performance and outlook. By their nature, forward-looking statements involve risk and uncertainty
because they relate to future events 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 space procurement budgets; Research and development costs in connection with new products;
 Legal, financial and governmental risks related to international transactions; Legal and investigatory proceedings and other economic, political and technological risks 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 2018 Airbus SE Registration
Document dated 29 July 2019, 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.

Company
Highlights

Business
Highlights

Guidance
Highlights

4

H1 2019 HIGHLIGHTS
Robust commercial aircraft environment
H1 2019 financials mainly reflect A320 ramp-up and neo transition
Focus on securing FY deliveries, which remains challenging
On that basis, 2019 Guidance maintained

5

H1 2019 COMMERCIAL POSITIONING
Consolidated Airbus Order Book

Consolidated Airbus
External Revenue

by Division

by Division

H1 2019
Airbus(in units)

Helicopters(in units)

Defence and Space(in € m)Order Intake (net)
Order Book

88
7,276

Order Intake (net)

123

Order Book

697

Order Intake (net)€ 30.9 bn
t/o defence€ 4.1 bn

4,220
Airbus77%

Helicopters

7%

Defence and Space16%

AIRBUS: 213 gross orders, incl. 151 new orders at Le Bourget. 88 net orders. Backlog: 7,276 a/c
HELICOPTERS: 123 net orders incl. 23 NH90 and 11 H145 in Q2
DEFENCE AND SPACE: Order intake € 4.2 bn, incl. A400M DIRCM for German Air Force and Global Support
Step 2. Key contract win in Space6

H1 2019 FINANCIAL PERFORMANCE
Revenues

EBIT Adjusted

in € bnin € bn / RoS (%)

8.2%

25.0

4.7%

30.9

2.5

1.2
H1 2018

H1 2019

EPS(1) Adjusted

H1 2018

H1 2019

FCF before M&A and Customer Financing

in €in € bn

2.25

(4.0)

(4.0)

H1 2019

H1 2018

H1 2019

0.96
H1 2018(1) H1 2019 Average number of shares: 776,291,117 compared to 774,129,413 in H1 2018
Capitalised R&D: € 45 m in H1 2019 and € 40 m in H1 2018
H1 2019 figures include A220, consolidated into Commercial Aircraft as of July 1st, 2018

7

H1 2019 PROFITABILITYEBIT Performance

H1 2019 EBIT Reported of € 2.1 bn

in € bn

H1 2019 EBIT Adjustments resulting from:
2.53

2.09

1.16

1.12

EBIT Adjusted

EBIT Reported

H1 2018€€€€– 208 m Defence export ban– 136 m A380 programme cost
– 90 m Others–
2 m PDP mismatch / BS revaluation

H1 2019 Net Adjustments of € − 436 m

H1 2019

EPS(1) Performancein €H1 2019 Net Income of € 1,197 m
H1 2019 Net Income Adjusted of € 1,750 m

2.25
1.54

0.96

0.64

EPS Adjusted
H1 2018

EPS Reported
H1 2019(1) H1 2019 Average number of shares: 776,291,117 compared to 774,129,413 in H1 2018
Capitalised R&D: € 45 m in H1 2019 and € 40 m in H1 2018
H1 2019 figures include A220, consolidated into Commercial Aircraft as of July 1st, 2018

H1 2019 tax rate on core business is 27%

8

CURRENCY HEDGE POLICY
IN $ BILLION

Forward Sales as of June 2019
Collars as of June 2019

3.9
13.1

Forward Sales and Collars as of Dec. 2018

1.7

22.3

20.0
15.0

14.7

9.9

Average hedge rates€ vs $

Forwards/Collars (2)£ vs $

2019

remaining 6 months

1.19

2020
1.23

2021
1.24

2022
1.25

2023

and beyond

1.26( 1.23 in Dec. 18 )( 1.23 in Dec. 18 )( 1.24 in Dec. 18 )( 1.27 in Dec. 18 )( 1.30 in Dec. 18 )

1.40

1.37

1.36

1.35

1.40

Mark-to-market value incl. in AOCI = € - 1.9 bn
Closing rate @ 1.14 € vs. $In H1 2019, $ 19.6 bn(1) of new Forwards were added at an average rate of € 1 = $ 1.22
$ 13.1 bn(1) of hedges matured at an average rate of € 1 = $ 1.27
Hedge portfolio(1) 30 June 2019 at $ 87.4 bn (vs. $ 81.9 bn in Dec. 2018), at an average rate of $ 1.23(2)In H1, $ 4.1 bn of hedges rolled-over intra-year to align with backloaded delivery profile
Approximately 60% of Airbus US$ revenues are naturally hedged by US$ procurement. Graph shows US$ Forward Sales and Collars
Hedge rates reflect EBIT impact of the US$ hedge portfolio(1) Total hedge amount contains $/€ and $/£ designated hedges; (2) Blended Forwards and Collars rate includes Collars at least favourable rate

9

H1 2019 CASH EVOLUTION
IN € BILLION

2.8

-1.4

-6.1
13.3

-0.7

(3)

-0.1
-1.3

0.0

Free Cash Flow before M&A : € - 4.0 bn
t/o Customer Financing: € 0.0 bn

6.6

Free Cash Flow before M&A andCustomer Financing € - 4.0 bn
IFRS 16
Net Cashposition Dec. Implementation
2018

Gross Cash
Flow fromOperations

Change in
Cash used forWorking Capital
investingactivities before
M&A (1)IFRS 16 implemented January 1st, 2019(1) Thereof Capex of € – 0.9 bn(2) M&A transactions include acquisitions and disposals of subsidiaries and businesses(3) Excludes M&A of € – 0.1 bn(4) Includes change in liability for puttable instruments of € + 0.2 bn

M&A (2)

Shareholder
ReturnPensions &Others (4)Net CashPosition June
2019

Company
Highlights

Business
Highlights

Guidance
Highlights

11

IN € MILLION
Order Intake (net)
Order Book
Deliveries (units)

Units

H1 2019

H1 2018

Change88206-57.3%

7,276

7,168

1.5%

Deliveries by Programme (units)
A320

76%

A350

14%

A220

5%

389

303

28.4%

A330

4%

Revenues

24,043

18,546

29.6%

A380

1%

R&D Expenses

1,008

975

4.2%

5.3%

2,338

867

9.7%

4.7%

2,151

773

Platforms

93%

8.9%

4.2%

Services7%

in % of Revenues

EBIT Adjusted
in % of Revenues

EBIT
in % of Revenues

3.4%
169.7%

External Revenue Split

178.3%

Revenues mainly reflect higher A320neo and A350 deliveries and favourable FXEBIT Adjusted mainly reflects A320neo ramp-up, A350 operational performance, and FXCapitalised R&D: € 19 m in H1 2019 and € 22 m in H1 2018
H1 2019 figures include A220, consolidated into Commercial Aircraft as of July 1st, 2018

12

HELICOPTERS
IN € MILLION
Order Intake (net)
Order Book

H1 2019

H1 2018

Change123143-14.0%

697

694

0.4%

143

141

1.4%

2,371

2,388

-0.7%

143

147

6.0%

6.2%

125

135

5.3%

5.7%

124

114

5.2%

4.8%

Units

Deliveries (units)
Revenues
R&D Expenses
in % of Revenues

EBIT Adjusted
in % of Revenues

EBIT
in % of Revenues

Civil

53%

Defence47%

Platforms

50%

Services

50%

-2.6%
-7.4%
8.8%

Stable Revenues driven by programme phasing compensated by growth in services
EBIT Adjusted reflects less favourable delivery mix partially compensated byincreased contribution from services

Capitalised R&D: € 9 m in H1 2019 and € 12 m in H1 2018

External Revenue Split

13

DEFENCE AND SPACE
IN € MILLION
Order Intake (net)Value

H1 2019

H1 2018

Change

4,220

3,184

32.5%

5,015

4,652

R&D Expenses

138

136

in % of Revenues

2.8%

2.9%

EBIT Adjusted

233

309

in % of Revenues

4.6%

6.6%

EBIT

(15)

382

in % of Revenues

-0.3%

8.2%

Revenues

External Revenue Split
71%

Services

29%

Military Aircraft

52%

Space Systems

26%

CIS(1) & Others

22%

7.8%
1.5%
-24.6%
N/A

Revenues increase supported by Military Aircraft
EBIT Adjusted mainly reflects efforts to support on-going campaigns
A400M: 7 a/c delivered in H1 2019; Contract Amendment signed
German defence export ban: EBIT impact of € – 208 m booked in H1 2019, t/o € – 18 m in Q2
2018 EBIT included Capital Gain from disposal of Airbus DS Communications, Inc. business(1) Communications, Intelligence & Security
Capitalised R&D: € 17 m in H1 2019 and € 6 m in H1 2018

Platforms

Company
Highlights

Business
Highlights

Guidance
Highlights

152019 GUIDANCEAs the basis for its 2019 guidance, Airbus expects the world economy and air traffic to grow in linewith prevailing independent forecasts, which assume no major disruptions
Airbus 2019 Earnings and FCF guidance is before M&A
Airbus targets 880 to 890 commercial aircraft deliveries in 2019
On that basis:
Airbus expects to deliver an increase in EBIT Adjusted of approximately +15% compared to 2018
and FCF before M&A and Customer Financing of approximately € 4 bn

16

KEY PRIORITIESDeliver on 2019 commitments
Ramp-up A320
Improve A350 margins
Improve programme execution across businesses
Services, Digital and Innovation

Deliver Earnings and FCF growth potential

Appendix

18

EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $Active exposure management

1.34
1.32
1.30

Average
Hedge Rates

1.32
1.31

1.28

1.27

1.26
1.24
1.22

1.23 (1)

1.20

1.18

1.16
Q1

Q2

2019 E(1) Q2 actual

1.20

1.18

1.18

1.14

1.20

Q3

Q4

FY 2018

FY 2018

1.24

FY 2019E

1.23

19

H1 2019 DETAILED INCOME STATEMENT AND ADJUSTMENTS
IN € MILLION

thereof Adjustments
Impact on EBIT
H1 2019

Operational

FX

AirbusHelicopters

Defence andSpace(1)

Airbus + Defence
and Space(2)

(205)

(1)

(228)

(2)

Financial
ResultH1 2019
Adjusted

EBIT

2,093

in % of Revenues

6.8%

Interest income

9191Interest expenses

(191)

(191)

Other Financial Result

(115)

(89)

(26)

Financial Result

(215)

(89)

(126)

Income before taxes

1,878

(89)

2,403

Non-controlling interest(4)

Net Income reported
Number of shares

EPS reported (in €)

(205)

(1)

(228)

(2)

2,529
8.2%

(4)

1,197

1,750

776,291,117

776,291,117

1.54

2.25

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 27%. The effective tax rate on Income before taxes is 36%(1) Thereof € - 17 m A400M provision update(2) Thereof € +18 m Airbus, € - 20 m ADS
H1 2019 figures include A220, consolidated into Commercial Aircraft as of July 1st, 201820

H1 2018 DETAILED INCOME STATEMENT AND ADJUSTMENTS
IN € MILLION

thereof Adjustments
Impact on EBIT
H1 2018

Operational

FX

AirbusHelicopters

Defence andSpace(1)

Airbus + Defence
and Space(2)

(40)

(21)

59

(40)

Financial
ResultH1 2018
Adjusted

EBIT

1,120

in % of Revenues

4.5%

Interest income

8787Interest expenses

(199)

(199)

Other Financial Result

(191)

(165)

(26)

Financial Result

(303)

(165)

(138)

Income before taxes

817

(165)

1,024

Non-controlling interest

3

Net Income reported
Number of shares

EPS reported (in €)

(40)

(21)

59

(40)

1,162
4.7%

3

496

740

774,129,413

774,129,413

0.64

0.96

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 40%(1) Thereof € - 98 m A400M provision update mainly for escalation, € + 157 m net capital gains from disposals(2) Thereof € - 54 m Airbus, € + 14 m ADS

21

Q2 2019 KEY FIGURESIN € MILLION

Q2 2019

Q2 2018

Revenues

18,317

14,851

EBIT Adjusted

1,980

1,148

EBIT

1,912

921

Net Income

1,157

213

FCF before M&A

395

(223)

FCF before M&A and Customer Financing

360

(129)

IN € MILLION

Q2 2019

Q2 2018

Revenues

Q2 2019

Q2 2018

EBIT Adjusted

Q2 2019

Q2 2018

EBIT

Airbus

14,346

11,324

1,802

908

1,759

775

Helicopters

1,364

1,427

110

138

115

124

Defence and Space

2,903

2,435

132

197

102

117

Transversal & Elim.

(296)

(335)

(64)

(95)

(64)

(95)

Consolidated Airbus

18,317

14,851

1,980

1,148

1,912

921

Q2 2019 figures include A220, consolidated into Commercial Aircraft as of July 1st, 2018

22

AIRBUS: STRONG LIQUIDITY POSITION AS OF 30 JUNE 2019
€ 3.0 bn

Credit Facility:

Credit Facility (RSCF)

 Maturity 2021, undrawn

 Fully committed by 40 banks

 No financial covenants, no MAC clause

Financing Liabilities:€ 11.3 bn
Financing Liabilitiesof which long-term : € 8.6 bn
 Includes € 3.0 bn EMTN, € 0.5 bn
Convertible Bond, € 1.1 bn exchangeablebond and $ 2.5 bn USD 144A/RegS€ 17.8 bn
Total Gross CashInvested in highly rated securities

Credit Ratings:€ 6.6 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

23

DETAILED FREE CASH FLOWIN € MILLION
H1 2019

H1 2018

Net Cash position at the beginning of the period

13,281

13,391First time impact of IFRS 16(1,352)

-

2,781

1,185

(6,088)(4,501)

(809)

(481)

(914)

(916)

(4,116)(3,797)

(118)

272

Free Cash Flow before M&A(3,998)(4,069)of which Customer Financing

(17)

(101)

(3,981)(3,968)133

112

Change in treasury shares / share buyback

4

(52)

Change in liability for puttable instruments

179

0

Contribution to plan assets of pension schemes

(77)

(126)

(1,280)(1,161)

(207)

(299)

6,565

8,068

Gross Cash Flow from Operations
Change in working capital

(1)

(2)

Cash used for investing activities(3)of which Industrial Capex (additions)Free Cash Flow

(4)(5) (6)of which M&AFree Cash Flow before M&A and customer financing
Change in capital and non-controlling interests

Cash distribution to shareholders / non-controlling interests
Others(7)

Net Cash position at the end of the period(1) Excluding working capital change, contribution to plan assets of pension schemes and realised FX results on Treasury swaps(2) Including net customer financing(3) Excluding change in securities and change in cash from changes in consolidation and excluding bank activities; (4) Excluding leased and financial assets;(5) Excluding change in securities, change in cash from changes in consolidation, contribution to plan assets, realised FX results on Treasury swaps and bank activities(6) Including A220 integration; (7) Including Airbus Canada Ltd. Partnership funding agreement
H1 2019 figures include A220, consolidated into Commercial Aircraft as of July 1st, 2018

24

NET CASH POSITIONIN € MILLION
June 2019

Dec. 2018

Gross Cash

17,84922,207

Financing Debts(11,284)(8,926)

Short-term Financing Debts(2,649)(1,463)Long-term Financing Debts(8,635)(7,463)

6,565

13,281

23

28

6,588

13,309

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

25

CUSTOMER FINANCING EXPOSURE
IN € MILLION

June 2019

Dec. 2018

June 2019

AirbusDec. 2018

Helicopters

Closing rate € 1 =$ 1.14$ 1.15$ 1.14$ 1.15

Total Gross Exposure

866

802

111

109

of which off-balance sheet

104

28

10

10

Estimated value of collateral

(613)

(562)

(37)

(35)

Net Exposure

253

240

74

74

Provision and asset impairment

(253)

(240)

(74)

(74)

0

0

0

0

Net Exposure after provision

26

AIRBUS CUSTOMER FINANCING
AdditionsIN € BILLION

0.8

0.6
0.3

Airbus Customer
Financing Gross
Exposure

(1.1)

(0.2)
(0.1)

Amortization
1.0

0.5

0.6

Net change
0.9

0.8

0.7

0.6

0.1

(0.2)
(0.1)

(0.3)
(0.7)
(0.2)

(0.1)

Gross Exposurein $ bn

0.8

Sell Down

(0.7)

(0.1)

(0.1)

(0.7)

(0.7)

(0.1)

(0.2)

(0.6)

(0.5)

(0.1)

(0.2)

(0.7)
(0.1)

(0.6)
(0.2)

0.1
(0.0)
(0.1)

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

1.5

1.5

1.8

1.7

1.4

1.5

1.6

1.3

1.5

1.7

1.5

0.9

1.0

Net Exposure fully provisioned
Net Exposure
Gross
Exposure€ 0.8 bn($ 0.9 bn)€ 0.2 bn)
Estimated
Collateral

Net Exposure fully provisioned
Net Exposure
Gross
Exposure€ 0.9 bn($ 1.0 bn)€ 0.6 bn($ 0.6 bn)

31 December 2018€/$ = 1.15

€ 0.3 bn
Estimated
Collateral€ 0.6 bn($ 0.7 bn)

30 June 2019€/$ = 1.14

27

BALANCE SHEET HIGHLIGHTS: ASSETSIN € MILLION

June 2019

Dec. 2018

Non-current Assets

56,89656,564of which Intangible & Goodwill

16,607

16,726of which Property, plant & equipment

17,274

16,773of which Investments & Financial assets

5,696

5,504

of which Contract assets

71

65

of which positive hedge mark-to-market

884

1,031

of which Non-current securities

10,720

10,662Current Assets

55,23058,300of which Inventory

34,77631,891of which Cash

5,218

9,413

of which Contract assets

752

789

of which positive hedge mark-to-market

160

286

1,911

2,132

of which Current securities
Assets of disposal groups classified as held for sale
Total Assets
Closing rate € vs. $

330

334

112,456

115,198

1.14

1.15

28

BALANCE SHEET HIGHLIGHTS: LIABILITIESIN € MILLION

June 2019

Dec. 2018

7,432

9,719

of which OCI (Other Comprehensive Income)

253

134

of which Non-controlling interests

(2)

(5)

Total Non-current liabilities

48,532

44,693of which Pensions

9,776

6,690

of which Other provisions

4,689

4,881

of which Financing debts

8,635

7,463

of which European governments’ refundable advances

3,658

4,233

of which Contract liabilities

15,551

15,832of which negative hedge mark-to-market

1,729

1,132

Total Current liabilities

56,17960,354299

382

of which Other provisions

5,699

6,935

of which Financing debts

2,649

1,463

886

344

of which Contract liabilities

26,141

26,229of which Trade liabilities

13,06916,237

769
313

1,623
432

112,456

115,198

Total Equityof which Pensionsof which European governments’ refundable advancesof which negative hedge mark-to-market
Liabilities of disposal groups classified as held for sale
Total Liabilities and Equity

29

SHAREHOLDING STRUCTURE AS AT 30 JUNE 2019

Free Float (73.7%)
Shareholder Agreement (26.2%)
SOGEPA (11.0%)
GZBV (11.0%)
SEPI (4.2%)

Treasury Shares (0.1%)

778,096,721 shares issued as at 30 June 2019

30

QUARTERLY REVENUES BREAKDOWN (CUMULATIVE)
IN € MILLION
Q1

H1

9m

2019

2018

2019

2018

Airbus

9,697

7,222

24,043

18,54630,47847,970

Helicopters

1,007

961

2,371

2,388

3,755

5,934

Defence and Space

2,112

2,217

5,015

4,652

7,051

11,063

Transversal & Elim.

(267)

(281)

(563)

(616)

(863)

(1,260)Consolidated Airbus

12,549

10,11930,86624,97040,421

63,707

H1 2019 figures include A220, consolidated into Commercial Aircraft as of July 1st, 2018

2019

FY
2018

2019

2018

31

QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE)
IN € MILLION
Q1

H1

9m

2019

2018

2019

2018

Airbus

536

(41)

2,338

867

2,340

4,808

Helicopters

15

(3)

125

135

202

380

Defence and Space

101

112

233

309

409

935

Transversal & Elim.

(103)

(54)

(167)

(149)

(213)

(289)

Consolidated Airbus

549

14

2,529

1,162

2,738

5,834

H1 2019 figures include A220, consolidated into Commercial Aircraft as of July 1st, 2018

2019

FY
2018

2019

2018

32

QUARTERLY EBIT BREAKDOWN (CUMULATIVE)
IN € MILLION
Q1

H1

9m

2019

2018

2019

2018

392

(2)

2,151

773

2,238

4,295

9

(10)

124

114

179

366

Defence and Space

(117)

265

(15)

382

479

676

Transversal & Elim.

(103)

(54)

(167)

(149)

(213)

(289)

Consolidated Airbus

181

199

2,093

1,120

2,683

5,048

AirbusHelicopters

H1 2019 figures include A220, consolidated into Commercial Aircraft as of July 1st, 2018

2019

FY
2018

2019

2018

33

H1 2019 IFRS VS. APM CASH FLOW RECONCILIATIONIN € BILLIONIN € BILLION
H1 2019

H1 2019

Cash provided by (used for) operating activities(3.4)

Cash provided by (used for) operating activities(3.4)

t/o Reimbursement from / contribution to plan assets(0.1)

Cash provided by (used for) investing activities(0.5)

t/o Treasury swaps(0.0)

t/o Net change in securities

0.4

t/o Change in working capital(6.1)

Others0.2

Gross Cash Flow from Operations

2.8

Free Cash Flow

(4.1)

t/o M&A transactions(0.1)

Free Cash Flow before M&A(4.0)

t/o Customer Financing(0.0)

FCF before M&A and Customer Financing

(4.0)

34

GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM)
The following Presentation also contains certain “non-GAAP financial measures”, i.e. financial measures that either exclude or include amounts that are not excluded or
included in the most directly comparable measure calculated and presented in accordance with IFRS. For example, Airbus makes use of the non-GAAP 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 asreported 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 financial result 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, restructurings or foreign exchange impacts as well as capital gains/losses from thedisposal 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 statements 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 (allas recorded in the consolidated statement of financial position) as defined in Registration Document, 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 2.1.6.1 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 foreignexchange 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, contract assets and contract liabilities (including customer advances), trade liabilities, and other assets and other liabilities.



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&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 analternative performance measure and key indicator that reflects Free Cash Flow excluding those cash flows resulting from acquisitions and disposals 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, especially when there is higher
uncertainty around customer financing activities.