Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

Contents
1 Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Statements ......................................................................2
Unaudited Condensed Interim IFRS Consolidated Income Statement ...............................................................................................2
Unaudited Condensed Interim IFRS Consolidated Statement of Comprehensive Income .................................................................3
Unaudited Condensed Interim IFRS Consolidated Statement of Financial Position ...........................................................................4
Unaudited Condensed Interim IFRS Consolidated Statement of Cash Flows ....................................................................................6
Unaudited Condensed Interim IFRS Consolidated Statement of Changes in Equity ..........................................................................7
2 Notes to the Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Statements .................................................81.

The Company .......................................................................................................................................................................82.

Accounting Policies ...............................................................................................................................................................83.

Acquisitions and Disposals .................................................................................................................................................. 14

4.

Related Party Transactions ................................................................................................................................................. 15

5.

Segment Information ........................................................................................................................................................... 16

6.

Revenue, Gross Margin and Profit before Financial Result and Income Taxes .................................................................... 17

7.

Total Financial Result.......................................................................................................................................................... 17

8.

Income Taxes ..................................................................................................................................................................... 18

9.

Earnings per Share ............................................................................................................................................................. 18

10.

Intangible Assets and Property, Plant and Equipment ......................................................................................................... 18

11.

Investments Accounted for under the Equity Method ........................................................................................................... 18

12.

Other Investments and Other Long-Term Financial Assets ................................................................................................. 19

13.

Inventories .......................................................................................................................................................................... 19

14.

Contract Assets, Contract Liabilities and Trade Receivables ............................................................................................... 19

15.

Provisions ........................................................................................................................................................................... 19

16.

Other Financial Assets and Other Financial Liabilities ......................................................................................................... 20

17.

Other Assets and Other Liabilities ....................................................................................................................................... 20

18.

Total Equity ......................................................................................................................................................................... 21

19.

Net Cash ............................................................................................................................................................................. 21

20.

Information about Financial Instruments .............................................................................................................................. 22

21.

Litigation and Claims ........................................................................................................................................................... 24

22.

Number of Employees ......................................................................................................................................................... 25

23.

Events after the Reporting Date .......................................................................................................................................... 25

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

1
Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Statements
Unaudited Condensed Interim
IFRS Consolidated Income Statement(In € million)

Revenue (1)Cost of sales (1)Gross margin (1)Selling expenses
Administrative expenses
Research and development expenses
Other income
Other expenses
Share of profit from investments accounted for underthe equity method (1)Other income from investments
Profit before financial result and income taxes (1)Interest income
Interest expense
Other financial result (1)Total financial result (1)Income taxes (1)Profit for the period (1)

Note
6
6

6

1 January 30 September
2018
40,421(34,357)
6,064
(622)
(1,093)(2,103)352(78)

1 January 30 September
2017
38,007(33,707)
4,300
(639)
(1,206)(1,918)916(78)

1 July 30 September
2018
15,451(12,627)
2,824
(211)
(410)
(700)
42
(35)

1 July 30 September
2017
12,832(11,317)
1,515
(177)
(406)
(630)
129
(18)

120
43
2,683
144
(367)
(190)
(413)
(824)
1,446

197
101
1,673
134
(385)
352
101
(376)
1,398

39
14
1,563
57
(168)
1
(110)
(500)
953

48
1
462
53
(134)
110
29
(184)
307

1,453
(7)

1,398
0

957
(4)

307
0

€
1.88
1.87

€
1.81
1.80

€
1.23
1.23

€
0.40
0.40

6

7
8

Attributable to:Equity owners of the parent (Net income) (1)Non-controlling interests
Earnings per share
Basic (1)Diluted (1)
(1)

9
9

Previous year figures are restated due to the application of IFRS 15.

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

2

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

Unaudited Condensed Interim
IFRS Consolidated Statement of Comprehensive Income(In € million)

Profit for the period (1)1 January 30 September
2018
1,446

1 January 30 September
2017
1,398

1 July 30 September
2018
953

1 July 30 September
2017
307

15
(208)

314
0

19
(119)

(48)
0

42
(37)

11
(92)

34
(43)

6
21

34
(1,811)
(111)

(404)
9,342
350

6
(652)
(44)

(90)
2,596
221

(10)
476
(1,610)(164)(21)(2,546)
6,954
8,352

(4)
173
(630)
323

(8)
(592)
2,106
2,413

(151)
(13)

8,320
32

327
(4)

2,406
7

Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurement of the defined benefit pension plans
Change in fair value of assets (2)Share of change from investments accounted forunder the equity method
Income tax relating to items that will not be reclassified
Items that may be reclassified to profit or loss:
Foreign currency translation differences for foreign
operations
Change in fair value of cash flow hedges
Change in fair value of assets (2)Share of change from investments accounted forunder the equity method
Income tax relating to items that may be reclassified
Other comprehensive income, net of tax
Total comprehensive income for the period (1)Attributable to:Equity owners of the parent (1)Non-controlling interests(1)(2)

Previous year figures are restated due to the application of IFRS 15.
IFRS 9 new classification category (prior year-end: change in fair value of available-for-sale financial assets).

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

3

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

Unaudited Condensed Interim
IFRS Consolidated Statement of Financial Position(In € million)

AssetsNon-current assets
Intangible assets
Property, plant and equipment
Investment property
Investments accounted for under the equity method (1)Other investments and other long-term financial assets
Non-current contract assets (1)Non-current other financial assets
Non-current other assets (1)Deferred tax assets (1)Non-current securities
Total non-current assets (1)Note

30 September 201831 December 201710
10

16,98816,659
3
1,540
4,228
4
1,718
1,023
5,043
10,321
57,527

11,62916,610
3
1,617
4,204
1
2,980
975
4,563
10,94453,52635,052
5,530
562
2,421
1,807
4,171
937
2,401
5,603
58,48435
116,046

29,737
5,487
529
2,120
1,979
2,937
914
1,627
12,01657,346
202
111,074

11
12
14
16
17

Current assets
Inventories (1)Trade receivables (1)Current portion of other long-term financial assets
Current contract assets (1)Current other financial assets
Current other assets (1)Current tax assets
Current securities
Cash and cash equivalents
Total current assets (1)Assets and disposal group of assets classified as held for sale
Total assets (1)

13
14
14
16
17

19
3

4

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

(In € million)

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

Note

30 September 201831 December 2017

18

776
7,865
944
(54)
9,531
(5)
9,526

775
7,225
2,742
(2)
10,7402
10,742

15
19
14
16
17

11,5477,500
14,684
9,516
289
1,321
53
44,9109,779
8,984
15,353
6,704
298
1,002
42
42,162

15
19

5,510
3,638
13,526
29,201
2,500
5,192
1,447
596
61,6100106,520
116,046

6,272
2,213
13,40628,227
2,050
3,909
1,481
506
58,064
106
100,332
111,0741416
17

Previous year figures are restated due to the application of IFRS 15.

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

5

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

Unaudited Condensed Interim
IFRS Consolidated Statement of Cash Flows
1 January Note 30 September 2018

1 January 30 September 2017

1,453
(7)

1,398
0

1,684
(7)
357
(54)
(228)
(120)
(565)
(1,152)(5,687)(4,326)

1,603
(260)
(145)
383
(770)
(197)
(60)
(171)
(4,400)(2,619)(1,378)(1,655)

171

113

107
0

0
740

(444)

(633)

353
50

479
20

207
(17)
(951)

0
(39)
(975)

Financing activities:
Change in financing liabilities
Cash distribution to Airbus SE shareholders
Dividends paid to non-controlling interests
Changes in capital and non-controlling interests
Change in treasury shares
Cash (used for) provided by financing activities(35)(1,161)0
112(52)(1,136)

1,549(1,043)
(4)
79
0
581

Effect of foreign exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period (3)Cash and cash equivalents at end of period
thereof presented as cash and cash equivalents
thereof presented as part of disposal groups classified as held for sale

(5)
(6,418)12,021
5,603
5,603
0

(305)
(3,318)
10,160
6,842
6,592
250

(In € million)

Operating activities:
Profit for the period attributable to equity owners of the parent (Net income) (1)Loss for the period attributable to non-controlling interests
Adjustments to reconcile profit for the period to cash provided by operating
activities:
Depreciation and amortisation
Valuation adjustments (1)Deferred tax expense (income) (1)Change in income tax assets, income tax liabilities and provisions for income tax
Results on disposals of non-current assets
Results of investments accounted for under the equity method
Change in current and non-current provisions (1)Contribution to plan assets
Change in other operating assets and liabilities (1)Cash (used for) operating activities (1) (2)Investing activities:
Purchases of intangible assets, property, plant and equipment andinvestment property
Proceeds from disposals of intangible assets, property, plant and equipment andinvestment property
Acquisitions of subsidiaries, joint ventures, businesses and non-controllinginterests (net of cash)
Proceeds from disposals of subsidiaries (net of cash)
Payments for investments accounted for under the equity method, otherinvestments and other long-term financial assets
Proceeds from disposals of investments accounted for under the equity method,other investments and other long-term financial assets
Dividends paid by companies valued at equity
Disposals of non-current assets and disposal groups classified as assets held forsale and liabilities directly associatedChange in securities
Cash (used for) investing activities

(1)
(2)
(3)

3

Previous year figures are restated due to the application of IFRS 15.
Cash provided by operating activities has been positively impacted by certain agreements reached with the Company’s suppliers and customers relating
to the settlement of claims and negotiation on payment terms.
The cash and cash equivalents at the beginning of the period 2018 include € 5 million, which is presented as part of assets of disposal groups classified
as held for sale.

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

6

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

Unaudited Condensed Interim
IFRS Consolidated Statement of Changes in Equity
Equity attributable
to equity ownersof the parent
3,657(2,088)
1,569
1,398
6,922
8,320

Non-controllinginterests
(5)
0
(5)
0
32
32

Total Equity
3,652(2,088)
1,564
1,398
6,954
8,352

Cash distribution to shareholders /Dividends paid to non-controlling interests
Capital increase
Share-based payment (IFRS 2)
Equity transaction (IAS 27)
Balance at 30 September 2017, restated(1,043)
79
33
0
8,958

(4)
0
0
(23)
0

(1,047)
79
33
(23)
8,958

Balance at 1 January 2018, as reported
Restatements (1) (2)Balance at 1 January 2018, restated (1) (2)Profit for the period
Other comprehensive income
Total comprehensive income for the period

13,348(2,616)
10,732
1,453(1,604)
(151)

3
(1)
2
(7)
(6)
(13)

13,351(2,617)
10,734
1,446(1,610)(164)

Cash distribution to shareholders /dividends to non-controlling interests
Capital increase
Share-based payment (IFRS 2)
Equity transaction (IAS 27)
Change in treasury shares
Balance at 30 September 2018

(1,161)
112
57
(6)
(52)
9,531

0
0
0
6
0
(5)

(1,161)
112
57
0
(52)
9,526

(In € million)

Balance at 1 January 2017, as reported
Restatements (1)Balance at 1 January 2017, restated (1)Profit for the period (1)Other comprehensive income
Total comprehensive income for the period (1)

(1)
(2)

Previous year figures are restated due to the application of IFRS 15.
Opening balance figures are restated due to the application of IFRS 9.

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

7

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 20182
Notes to the Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Statements
1.

The Company

The accompanying Unaudited Condensed Interim IFRS Consolidated Financial Statements present the financial position and the resultsof operations of Airbus SE and its subsidiaries, a European public limited-liability company (Societas Europaea) with its seat (statutairezetel) in Amsterdam, The Netherlands, its registered address at Mendelweg 30, 2333 CS Leiden, The Netherlands, and registered with
the Dutch Commercial Register (Handelsregister) under number 24288945. The Company reportable segments are Airbus, Airbus
Helicopters and Airbus Defence and Space (see “– Note 5: Segment Information”). The Company is listed on the European stock
exchanges in Paris, Frankfurt am Main, Madrid, Barcelona, Valencia and Bilbao. The Unaudited Condensed Interim IFRS Consolidated
Financial Statements were authorised for issue by the Company’s Board of Directors on 30 October 2018.

2.

Accounting Policies

The Unaudited Condensed Interim Consolidated Financial Statements are prepared in accordance with International Financial ReportingStandards (“IFRS”), issued by the International Accounting Standards Board (“IASB”) as endorsed by the European Union (“EU”) as at
30 September 2018. They are prepared and reported in euro (“€”) and all values are rounded to the nearest million appropriately.
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect theabsolute figures.
These Unaudited Condensed Interim IFRS Consolidated Financial Statements are prepared in compliance with IAS 34 and should beread in conjunction with the IFRS Consolidated Financial Statements as of 31 December 2017. With the exception of the changes
highlighted below and applied for the first time in the nine-month period ended 30 September 2018, the Company’s accounting policies
and methods are unchanged compared to 31 December 2017.
The Company has implemented the new standards IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from contracts with customers”
on 1 January 2018. As a result, the Company has changed its accounting policy for revenue recognition and for the accounting of financial
instruments as detailed below.
The implementation of other amended standards and new interpretation has no material impact on the Unaudited Condensed Interim
IFRS Consolidated Financial Statements as of 30 September 2018.

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 recognise revenue
and how much revenue to recognise. IFRS 15 replaced the former revenue recognition standards IAS 18 “Revenue” and IAS 11“Construction contracts” and related interpretations. The core principle of IFRS 15 is that an entity recognizes revenue to depict the transfer
of control of the promised goods and/or services (performance obligations) in an amount that reflects the consideration to which that entity
is entitled.
The Company adopted the new standard on 1 January 2018, using the full retrospective transition method. Accordingly, the Company
restated the comparative 2017 results included in the first nine months 2018 Unaudited Condensed Interim IFRS Consolidated Financial
Statements. The opening equity was restated as of 1 January 2017.
The Company has elected the practical expedients for completed contracts and contract modifications. As a result, the Company has notrestated completed contracts which began and ended within 2017 or which were completed as at the beginning of 1 January 2017.
The Company used transaction price at the date contract was completed rather than estimating variable consideration amounts in thecomparative reporting periods. The Company has reflected the aggregate effect of all of the modifications that occur before 1 January
2017 in identifying the performance obligations, determining the transaction price and allocating the transaction price.
The application of those practical expedients allows an efficient implementation of the standard especially on complex transactions(e.g. contractual amendments on military contracts) and a provision of relevant information under IFRS 15.
The Company will use the practical expedient applicable to the disclosure on the amount of the transaction price allocated to the remaining
performance obligations (i.e. backlog) and an explanation of when it expects to recognize the amount as revenue. This information will
be disclosed as at 31 December 2018 without comparative information.
8

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

The Company revised its accounting policies relative to revenue recognition, to implement IFRS 15 “Revenue from contracts withcustomers” as follows.
Revenue recognition
The Company recognises revenue when it transfers the control of the promised goods and services to the customer. The Company
measures revenue, for the consideration to which the Company is expected to be entitled in exchange for transferring promised goods orservices. Variable considerations are included in the transaction price when it is highly probable that there will be no significant reversalof the revenue in the future. The Company identifies the various performance obligations of the contract and allocates the transaction
price to these performance obligations.
Advances and pre-delivery payments (contract liabilities) are normal and not considered a significant financing component as they areintended to protect the Company from the customer failing to complete its obligations under the contract.
Revenue from the sale of commercial aircraft
Revenue is recognised at a point in time (i.e. at the delivery of the aircraft). The Company estimates the amount of price concession fordelivered aircraft and treats the price concession as a reduction of both revenue and cost of sales.
Revenue from the sale of military aircraft, space systems and services
When the control of the produced good and rendered services is transferred over time to the customer, revenue is recognised over time(i.e. under the percentage of completion method).
The Company transfers control over time when:-

it produces a good with no alternative use and the Company has an irrevocable right to payment (including a reasonable margin) for
the work completed to date, in the event of termination of the contract for the convenience of the customer (e.g. Tiger contract, A400M
development performance obligation); or-

it creates a good which is controlled by the customer as the good is created or enhanced (e.g. Eurofighter contracts, some bordersecurity contracts); or-

the customer simultaneously receives and consumes the benefits provided by the Company (e.g. maintenance contracts).

For the application of the over time method (percentage of completion (PoC method)), the measure of the progress towards complete
satisfaction of a performance obligations is based on inputs (i.e. cost incurred).
When none of the criteria stated above have been met, revenue is recognised at a point in time. Revenue has been recognised at thedelivery of the aircraft under IFRS 15 from the sale of military transport aircraft, from the A400M launch contract and most of NH90 serial
helicopters contracts.
The most signiﬁcant changes result from the following:-

Several performance obligations are identiﬁed instead of recognising a single contract margin under IAS 11 (e.g. A400M, NH90
contracts). In some cases, the over time method (e.g. PoC method) revenue recognition criteria are not fulﬁlled under IFRS 15.
In particular, for A350 launch contracts, A400M series production and certain NH90 contracts, revenue and production costs relative
to the manufacture of aircraft are recognised at a point in time (e.g. upon delivery of the aircraft to the customer).

-

Under IFRS 15, measurement of the revenue takes into account variable consideration constraints in order to achieve high likelihoodthat a signiﬁcant reversal of the recognised revenue will not occur in the future. The constraint in assessing revenue at completion forsome contracts (A400M) generates a decrease in recognised revenue.

-

For the application of the over time method (PoC method), the Company measures its progress towards complete satisfaction of
performance obligations based on inputs (i.e. cost incurred) rather than on outputs (i.e. milestones achieved). For the Company’s
current long-term construction contracts progresses were usually measured based on milestones achieved (e.g. Tiger programme,
satellites, orbital infrastructures). Under IFRS 15, the Company measures progress of work performed using a cost-to-cost approach,whenever control of the work performed transfers to the customer over time.

IFRS 15 also impacts the presentation of the revenue from the sales of engines. Under IAS 18, the Company recognised revenue basedon the amount of its contracts with its customers, unless it had conﬁrmation of the amount of the price concession. In contrast, IFRS 15
requires the Company to estimate the amount of price concession in all cases and to treat the price concession as a reduction of revenue
and cost of sales. Under IFRS 15, revenue and cost of sales decrease by the amount of the estimated concession granted by theCompany’s engine supplier to their customers.
In addition to these changes, IFRS 15 introduced a new class of assets and liabilities “contract assets” and “contract liabilities”.
-

A contract asset represents the Company’s right to consideration in exchange for goods or services that the Company has transferred
to a customer when that right is conditioned by something other than the passage of time (e.g. revenue recognised from the applicationof the PoC method before the Company has a right to invoice. Prior to the implementation of IFRS 15, unbilled revenue was reported
within “trade receivables”).

-

A contract liability represents the Company’s obligation to transfer goods or services to a customer for which the customer has paid
a consideration (e.g. contract liabilities mainly include the customer advance payments received which were reported prior to theimplementation of IFRS 15 within “other liabilities”).

For any individual contract, either a contract asset or a contract liability is presented on a net basis.
The distinction between non-current and current presentation remains unchanged.
9

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

The following tables summarise the impacts on the comparative information resulting from the change in revenue recognition principles:
Condensed IFRS Consolidated Statements of Financial Position as at 31 December 2017
As previously
reported

IFRS 15

As restatedNon-current assets
Intangible assets
Property, plant and equipment
Investments accounted for under the equity method
Non-current contract assets
Non-current other assets
Total non-current assets

11,62916,6101,678
024,02453,941

0
0
(61)
1
(355)
(415)

11,62916,6101,617
123,66953,526

Current assets
Inventories
Trade receivables
Current contract assets
Current other assets
Cash and cash equivalents
Total current assets
Total assets

31,464
8,358
0
8,158
12,01659,996113,9370(1,727)(2,871)2,120
30
0(2,448)(2,863)29,737
5,487
2,120
8,188
12,01657,548111,074

13,351(2,609)10,742

10,153034,30244,455(374)
15,353(17,272)(2,293)

9,779
15,353
17,03042,162

6,575
13,444036,11256,131
100,586
113,937(303)(38)
28,227(25,847)
2,039
(254)
(2,863)

6,272
13,40628,227
10,26558,170100,332
111,074(In € million)

Equity and liabilities
Total equity
Liabilities
Non-current liabilities
Non-current provisions
Non-current contract liabilities
Non-current other liabilities
Total non-current liabilities
Current liabilities
Current provisions
Trade liabilities
Current contract liabilities
Current other liabilities
Total current liabilities
Total liabilities
Total equity and liabilities

Condensed IFRS Consolidated Income Statements for the nine-month period ended 30 September 2017
(In € million)

Revenue
Cost of sales
Gross margin
Selling, administrative and other expenses
Research and development expenses
Other income
Share of profit from investments accounted for under the equity method
and other income from investment
Profit before financial result and income taxes (EBIT)
Total financial result
Income taxes
Profit for the period10

As previously
reported
42,953(38,015)
4,938(1,923)(1,918)916

IFRS 15(4,946)
4,308
(638)
0
0
0

As restated
38,007(33,707)
4,300(1,923)(1,918)
916

299
2,312
92
(553)
1,851

(1)
(639)
9
177
(453)

298
1,673
101
(376)
1,398

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

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 and measurement of financial instruments, including a new expected credit loss model for
calculating impairment on financial assets, and the new general hedge accounting requirements. It also carries forward the guidance on
recognition and de-recognition of financial instruments from IAS 39.
The Company adopted the new standard on 1 January 2018 and has elected to apply the limited exemption in IFRS 9 relating to transition
for classification and measurement and impairment, and accordingly has not restated comparative periods in the year of initial application.
As a consequence, any adjustments to carrying amounts of financial assets or liabilities are recognised at the beginning of the reporting
period, with the difference recognised in opening equity.
Classification and Measurement
From 1 January 2018, the Company classifies its financial assets according to IFRS 9 using the following measurement categories:-

those to be measured at amortised cost; and-those to be measured subsequently at fair value (either through other comprehensive income or through profit and loss).

The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash
flows.
Financial assets at amortised cost — This category comprises assets that are held for collection of contractual cash flows where thosecash flows represent solely payments of principal and interest. It includes trade receivables.
Financial assets at fair value through other comprehensive income — This category comprises:(i)

Equity investments that are not held for trading. With the exception of dividends received, the associated gains and losses (including
any related foreign exchange component) are recognised in other comprehensive income (‘‘OCI’’). Unlike the treatment of“available-for-sale” equity investments under IAS 39, amounts presented in OCI are not subsequently transferred to profit and loss
on de-recognition of the equity investment or in the event of an impairment. The Company has re-measured non-listed equity
investments for which no quoted market prices are available at fair value and determined the fair values of these equity investments
using valuation methods such as net asset values or a comparable company valuation multiples technique.

(ii)

Debt instruments where contractual cash flows are solely payments of principal and interest, and that are held both for sales andcollecting contractual cash flows. These instruments include the bond securities portfolio and are measured in a manner similar to
the “available-for- sale” debts instruments under IAS 39.

Financial assets at fair value through profit and loss — This category comprises all other financial assets – derivative instruments for
instance – that are to be measured at fair value (including equity investments for which the Company did not elect to present changes infair value in other comprehensive income).
The impact of IFRS 9 on the classification and measurement of financial assets is set out in the “measurement categories of financial
instruments” table.
Impairment
From January 2018, the Company assesses on a forward-looking basis the expected credit losses associated with its debt instruments
carried at amortised cost and fair value through OCI. The Company applies the low credit risk exemption allowing the Company to assume
that there is no significant increase in credit risk since initial recognition of a financial instrument, if the instrument is determined to have
low credit risk at the reporting date. Similarly, the Company has determined that its trade receivables and contract assets generally have
low credit risk. The Company has applied the simplified approach permitted by IFRS 9 of measuring expected credit losses of tradereceivables and contract assets on a lifetime basis from initial recognition.
Hedge Accounting
Hedging instruments in place as at 31 December 2017 qualify as hedges under IFRS 9. The Company’s risk management strategies andhedge documentation are aligned with the requirement of the new standard and hedge accounting continues to apply.
With the adoption of IFRS 9, the Company accounts for changes in the time value of its foreign currency options as a cost of hedging
through other comprehensive income and recognizes them as a separate component of equity. The cumulative cost-of-hedging will bereclassified to profit or loss when the hedged transaction affects profit or loss.
Applying the cost-of-hedging guidance to foreign currency options retrospectively results in an increase of the 2018 opening balance ofaccumulated other comprehensive income by € +172 million on a net of tax basis and a corresponding decrease of the opening balanceof retained earnings. As a result, retrospective application does not change the total equity as of 1 January 2018 that would otherwise
have been reported.

11Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

New Hedge Strategy
As of 30 June 2018, the Company adopted a new hedge strategy to hedge its net exposure (US dollar revenue less US dollar cost)
resulting from commercial aircraft deliveries of specific aircraft types. The strategy more closely aligns hedge accounting with risk
management activities.
Under the new strategy the foreign exchange derivatives used as hedging instruments are designated as a hedge of a portion of the cash
flows received for each of a number of deliveries of a specific aircraft type that are expected to occur in a given month. In contrast to thefirst flow approach that was previously used (which is described in Note 35.1 to the 2017 IFRS Consolidated Financial Statements), the
new strategy assigns the hedging instruments to a specified number of monthly deliveries of a specific aircraft type and hence will allow
the hedge result to move along with the hedged deliveries in the event of a shift in deliveries.
If such a shift in hedged deliveries occurs, hedge ineffectiveness will arise to the extent the maturities of the hedging instrument and the
expected timing of the hedged cash flows are no longer perfectly aligned. In order to minimise such ineffectiveness the Company willclose the timing gap by rolling over hedges to new maturities, using foreign exchange swap contracts. The hedge results will move alongwith the hedged deliveries. In addition, the Company will designate the risk of changes in the spot element as the hedged risk in order toeliminate the ineffectiveness resulting from changes in forward points between different maturities. The forward element will be accounted
for as a cost of hedging similar to the time value of options.
According to the prospective application requirement of IFRS 9, the fair values of the legacy portfolio in place at inception of the newstrategy continue to be assigned to the previous first flow hedge regime and remain in the hedge reserve in other comprehensive income,to be recognised in profit and loss only at maturity of the originally hedged cash flows (unless those cash flows are no longer expected tooccur).
As a result of prospective application, the hedging instruments designated under the new strategy will have a non-zero fair value at hedge
inception, which may create some small ineffectiveness.
Another source of ineffectiveness will be the counterparty credit risk inherent in the hedge portfolio, as such credit risk is absent from thehedged cash flows. However, since netting arrangements are in place with all the hedge counterparties and the Company has a policy of
trading with investment grade counterparties only, the credit risk arising from its hedging instruments, and associated changes in credit
risk, have historically been negligible and are expected to remain so.
The hedging strategies otherwise used by the group are essentially the same as those used before transition to IFRS 9 and are describedin detail in Note 35.1 to the 2017 IFRS Consolidated Financial Statements. In some cases, the currency basis spread was excluded fromthe hedge on transition to IFRS 9 in order to improve hedge effectiveness. Changes in the currency basis spread will be accounted for asa cost of hedging similar to the time value of options. This change in the hedge designation had no impact on other comprehensive income
or equity as of 1 January 2018, nor will it affect future profit and loss when the hedges mature (unless exceptional circumstances apply).
IFRS 9 Total Equity Impacts
The total impact on the Company’s equity due to IFRS 9 as at 1 January 2018 is as follows:(In € million)

Opening equity, IAS 39
Increase in expected loss allowance for trade receivables and contract assets
Increase in expected loss allowance for other financial assets
Deferred tax effects
Adjustment to equity from adoption of IFRS 9Opening equity, IFRS 9

12

1 January 2018
10,742
(7)
(4)
3
(8)
10,734

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

The following table shows the measurement categories of financial instruments:(In € million)

Measurement
categories according
to IAS 39

Measurement
Carrying amount
Carrying amount
categories according according to IAS 39 at according to IFRS 9 at
to IFRS 9
31 December 2017
1 January 2018

AssetsOther investments and other long-term
financial assets
Fair value through OCI
Equity investments

Customer financings
Other loans
Trade receivables (1)Other financial assets
Derivative instruments (2)Non-derivative instruments
Securities

Cash and cash equivalents

Available-for-sale

Fair value throughprofit and loss

1,088
2,441
1,353

Fair value throughprofit and loss
Amortised cost
Amortised cost

771
1,521
5,487

771
1,521
5,487

Fair value throughFair value throughprofit and loss
profit and loss
Loans and receivables
Amortised cost
Available-for-sale Fair value through OCI

3,564
1,395
12,571

3,564
1,395
12,571

6,256

6,256
900

Loans and receivables
Loans and receivables
Loans and receivables

Fair value throughprofit and loss

Fair value throughprofit and loss
Fair value through OCI

Available-for-saleLoans and receivables

Fair value throughprofit and loss
Amortised cost

Amortised cost

2,085
3,675
39,766

1,185
3,675
39,766

Amortised cost

(7,063)(7,063)

Amortised cost
Other

Amortised cost
Other

(3,792)(342)(3,792)(342)

Fair value throughprofit and loss

Fair value throughprofit and loss

(2,271)(2,271)

Amortised cost
Amortised cost
Amortised cost

Amortised cost
Amortised cost
Amortised cost

(5,901)(582)(13,406)(33,357)(5,901)(582)(13,406)(33,357)

Total (1)Liabilities
Financing liabilities
Issued bonds and commercial
papersLiabilities to banks and otherfinancing liabilities (1)Finance lease liabilities
Other financial liabilities
Derivative instruments (2)European Government refundable
advances
Others (1)Trade liabilities (1)Total (1)(1)(2)

Previous year figures are restated due to the application of IFRS 15.
Most derivative instruments are designated as hedging instruments in cash flow hedges.

IFRS 16 “Leases”
The application of IFRS 16 is mandatory for the first interim period beginning on or after 1 January 2019. The standard introduces a single,
on-balance sheet lease accounting model for lessees, as the distinction between operating and finance lease is removed. Under IFRS
16, a lessee recognises a right-of-use asset representing its right to the underlying asset and a lease liability representing its obligation to
make future lease payments. The only exemptions are short-term and low-value asset leases.
The standard will affect primarily the accounting for operating leases where the Company is a lessee. The accounting for lessors will notchange significantly: lessors must continue to distinguish between finance and operating lease.
The detailed assessment of IFRS 16 impact on operating leases and on the Company’s Consolidated Financial Statements is currently inprogress. The preliminary outcome of the data collection process is that the Company’s main operating leases seem to be limited to realestate assets, company cars and equipment. In parallel, the Company has initiated the implementation of an IT tool to be used both tomanage the Company’s leases and to generate IFRS 16 calculations. So far, the most significant potential impact identified by theCompany relates to its operating leases of real estate assets (such as land, warehouses, storage facilities and offices).

13

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

The final impact of IFRS 16 on the Consolidated Financial Statements in the period of initial application will depend on future economic
conditions under assessment, including the Company’s borrowing rates at 1 January 2019, the composition of the lease portfolio at thatdate and the estimation of the lease terms.
The Company plans to apply IFRS 16 initially on 1 January 2019, using a modified retrospective approach. Therefore, the cumulative
effect of adopting IFRS 16 will be recognised as an adjustment to the opening balance of retained earnings at 1 January 2019, with norestatement of comparative information.

Use of Estimates and Judgements
In preparing the Unaudited Condensed Interim IFRS Consolidated Financial Statements, management makes assumptions and estimates.
The underlying assumptions used for the main estimates are similar to those described in the Company’s IFRS Consolidated Financial
Statements as of 31 December 2017. These estimates are revised if the underlying circumstances have evolved or in light of new
information.
The only exception is the estimate of income tax liabilities which is determined in the interim financial statements using the estimatedaverage annual effective income tax rate applied to the pre-tax income of the interim period.

3.

Acquisitions and Disposals

Acquisitions
On 16 October 2017, Airbus, Bombardier Inc. (“Bombardier”) and Investissement Québec (“IQ”) signed an agreement that brings together
Airbus’ global reach and scale with Bombardier’s newest, state-of-the-art jet aircraft family. Under the agreement, Airbus will provide
procurement, sales and marketing, and customer support expertise to the C Series Aircraft Limited Partnership (“CSALP”), the entitythat manufactures and sells the C Series. The partnership brings together two complementary product lines.
On 8 June 2018, having received all required regulatory approvals, Airbus, Bombardier and IQ closed the C Series transaction effective
on 1 July 2018.
On 1 July 2018, Airbus has taken the control of C Series programme and acquired 50.01% Class A ownership units in CSALP. Bombardierand IQ will own 33.55% and 16.44%, respectively. Airbus has consolidated CSALP using the full integration method effective from 1 July
2018. At closing, Airbus paid US$ 1 per share to assume a net liability. Technology and inventories are the main assets acquired. Airbus
has assumed the liabilities of CSALP which are mainly related to customer contracts in the backlog, trade payables, advance payments
received and refundable advance liabilities. The functional currency of CSALP is US dollar.
Bombardier will continue with its current funding plan of CSALP. Bombardier will fund the cash shortfalls of CSALP, if required, during thesecond half of 2018, up to a maximum of US$ 225 million; during 2019, up to a maximum of US$ 350 million; and up to a maximum
aggregate amount of US$ 350 million over the following two years, in consideration for non-voting participating Class B common units of
CSALP. Airbus has the choice to reimburse Bombardier’s funding for the nominal amount plus a yearly 2% interest or for an amount equal
to the fair value of the shares of CSALP at the purchase date of Class A ownership units.
Airbus benefits from call rights in respect of all of Bombardier’s interests in CSALP at fair market value, with the amount for Class B shares
subscribed by Bombardier capped at the invested amount plus accrued interests if any, including a call right exercisable no earlier than
7.5 years following the closing, except in the event of certain changes in the control of Bombardier, in which case the right is accelerated.
Airbus also benefits from call rights in respect of all IQ’s interests in CSALP at fair market value no earlier than 4.5 years following theclosing.
Bombardier benefits from a corresponding put right whereby it could require that Airbus acquire its interest at fair market value after the
expiry of the same period. IQ will also benefit from tag along rights in connection with a sale by Bombardier of its interests in thepartnership.
Airbus used the full goodwill approach to account for this transaction. Bombardier’s and IQ’s interests in CSALP are measured at theirestimated fair value. The fair value measurement of the assets acquired and liabilities assumed has been performed by an independent
expert. According to IFRS 3, the fair values of acquired assets and assumed liabilities have been determined excluding Airbus specificsynergies (mainly with respect to volumes sold and manufacturing costs).
The transaction has been approved by the Boards of Directors of both Airbus and Bombardier, as well as the Cabinet of the Governmentof Québec. The partnership’s head office, primary assembly line and related functions will be based in Mirabel, Québec (Canada).

14

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

The following table summarises the preliminary allocation of the purchase price to the acquired assets and the assumed liabilities at theacquisition date:(In € million)

Total

Intangible assets (1)Property, plant and equipment
Deferred tax assets
Inventories (2)Trade receivables
Other financial assets
Other assets
Cash and cash equivalents
Total assets acquired
Provisions / Acquired customer contracts (3)Deferred tax liabilities
Trade liabilities
Contract liabilities
Other financial liabilities
Other liabilities
Total liabilities assumed
Net liabilities assumed
Non-controlling interests (at fair value, i.e. including synergies provided by the acquirer) (4)Consideration transferred (5)Preliminary goodwill arising on acquisition (6)
(1)

(2)
(3)

(4)

(5)

(6)

1,398
252
85
640
8
278
89
129
2,879
2,633
78
270
685
827
356
4,849
1,970
2,246
(225)
3,991

Intangible assets: Mainly include the acquired technology for the A220 programme. The fair value of the programme was measured using the“multi-excess earnings method” and is equal to the present value of the after-tax cash flows attributable to future deliveries excluding existing contracts
in the backlog which are valued separately. The technology will be amortised over the expected number of aircraft to be delivered over the programme
useful life.
Inventories: The fair value of the inventories has been measured considering net contractual selling prices.
Acquired customer contracts: This represents the present value of the excess of expected fulfilment costs over contractual selling prices for all acquired
customer contracts in the backlog. Estimated fulfilment costs include both direct costs that will be recognized in gross margin and contributory asset
charges to reflect the return required on other assets that contribute to the generation of the forecast cash flows. This liability will be released as a
reduction of cost of sales based on the delivered aircraft considered in the measurement of the liability.
Non-controlling interests: Airbus has recognised a financial liability at fair value for the estimated exercise price of the written put options on
non-controlling interests (Bombardier put option and IQ tag along). According to the accounting policy of the company, changes in the fair value of theliability are recognised directly in equity.
Consideration transferred: Airbus paid US$ 1 per share (754 shares) to acquire 50.01% of CSALP and received 100,000,000 warrants which are each
entitled to one Class B Bombardier common share at a strike price equal to the US equivalent of Can$ 2.29. The fair value amounted to US$ 263 million
as at 1 July 2018. As a result, the consideration transferred is negative.
Goodwill: The goodwill mostly represents Airbus specific synergies expected from the acquisition, which have been excluded from the fair value
measurement of the identifiable net assets. These synergies mainly relate to higher expected volumes of aircraft sold and lower manufacturing costs.
CSALP is part of the cash generating unit (“CGU”) Airbus and will be tested for impairment on an annual basis. The opening balance sheet after
purchase price allocation of CSALP has been audited as at 1 July 2018. In accordance with IFRS 3 “Business combinations”, the opening balance
sheet of CSALP might vary during the 12 month allocation period which ends 1 July 2019. Airbus will retrospectively adjust the initial accounting toreflect new information that would have affected the recognition or the measurement of the preliminary amounts as of 1 July 2018.

Disposals
On 7 March 2018, the Company finalised the sale of Plant Holdings, Inc., held by the Airbus DS Communications Inc. business,to Motorola Solutions after receiving the required regulatory approvals. Airbus Defence and Space recognised a gain of € 159 million,
reported in other income.
Assets and Disposal Groups Classified as Held for Sale
As of 30 September 2018, the Company accounted for assets and disposal groups of assets classified as held for sale in the amountof € 35 million (prior year-end: € 202 million).

4.

Related Party Transactions

The Company has entered into various transactions with related entities; carried out in the normal course of business.
The Company participates in the UK in several funded trustee-administered pension plans, some of which have BAE Systems as principal
employer.

15

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

5.

Segment Information

The Company operates in three reportable segments which reflect the internal organisational and management structure according to thenature of the products and services provided.


Airbus (formerly Airbus Commercial Aircraft and Headquarters) — 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. It also includes the holding function of the Company and its bank activities.



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



Airbus Defence and Space — Military Aircraft design, development, delivery, and support of military aircraft such as combat,
mission, transport and tanker aircraft as well as Unmanned Aerial systems and their associated services. Space Systems design,development, delivery, and support of full range of civil and defence space systems for telecommunications, earth observations,navigation, science and orbital systems. Communication, Intelligence & Security provision of services around data processing fromplatforms, secure communication and cyber security. In addition, the main joint ventures design, develop, deliver, and support missile
systems as well as space launcher systems.

The following tables present information with respect to the Company’s business segments. As a rule, inter-segment transfers are carriedout on an arm’s length basis. Inter-segment sales predominantly take place between Airbus and Airbus Defence and Space and between
Airbus Helicopters and Airbus. Other activities not allocable to the reportable segments, together with consolidation effects, are disclosed
in the column “Transversal/Eliminations”.
The Company uses EBIT as a key indicator of its economic performance.
Business segment information for the nine-month period ended 30 September 2018 is as follows:(In € million)

Total revenue
Internal revenue
Revenue
thereof:sales of goods at a point in timesales of goods over time
services, including sale of spare parts
Profit (loss) before financial result and income
taxes (EBIT)
thereof research and development expenses
Interest result
Other financial result
Income taxes
Profit for the period

Airbus30,478(516)
29,962

AirbusHelicopters
3,755
(295)
3,460

AirbusDefence and
Space
7,051
(52)
6,999

Transversal /Eliminations
0
0
0

Consolidated
Airbus41,284(863)
40,421

27,825
11
2,126

1,672
249
1,539

1,907
2,786
2,306

0
0
0

31,404
3,046
5,971

2,238
(1,456)

179
(214)

479
(219)

(213)
(214)

2,683
(2,103)
(223)
(190)
(824)
1,446

Business segment information for the nine-month period ended 30 September 2017 is as follows: (1)(In € million)

Total revenue
Internal revenue
Revenue
thereof:sales of goods at a point in timesales of goods over time
services, including sale of spare parts
Profit (loss) before financial result and income
taxes (EBIT)
thereof research and development expenses
Interest result
Other financial result
Income taxes
Profit for the period(1)

Airbus27,579(396)
27,183

AirbusHelicopters
4,197
(367)
3,830

AirbusDefence and
Space
7,052
(58)
6,994

Transversal /Eliminations
0
0
0

Consolidated
Airbus38,828(821)
38,00725,161
0
2,022

1,691
242
1,897

1,558
3,306
2,130

0
0
0

28,410
3,548
6,049

779
(1,303)

161
(205)

889
(220)

(156)
(190)

1,673
(1,918)
(251)
352
(376)
1,398

Previous year figures are restated due to the application of IFRS 15.

16

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

6.

Revenue, Gross Margin and Profit before Financial Result and Income
Taxes

Revenue increased by € +2,414 million to € 40,421 million (first nine months 2017 (restated): € 38,007 million). The increase relates
mainly to Airbus (€ +2,899 million), principally reflecting higher deliveries, partly reduced due to the perimeter change at Airbus Helicopters(€ -442 million).
Revenue by geographical areas based on the location of the customer is as follows:
1 January 30 September 201813,197
11,915
7,498
4,470
947
2,394
40,421(In € million)

Asia-Pacific
EuropeNorth America
Middle East
Latin America
Other Countries
Total
(1)

1 January 30 September 2017 (1)13,161
10,975
6,576
4,590
434
2,271
38,007

Previous year figures are restated due to the application of IFRS 15.

The gross margin increased by € +1,764 million to € 6,064 million compared to € 4,300 million in the first nine months 2017 (restated).
The gross margin rate increased from 11.3% (restated) to 15.0%.
In the first nine months 2018, Airbus has delivered 61 A350 XWB aircraft. New order intakes, cancellations, delivery postponements andother contractual agreements to the end of September 2018 have been reflected in the financial statements.
The industrial ramp-up is progressing and associated risks continue to be closely monitored in line with the schedule, aircraft performanceand overall cost envelope, as per customer commitments. Despite the progress made, challenges remain with recurring cost convergenceas the ramp-up continues.
12 A400M aircraft were delivered in 2018. In total, 69 aircraft have been delivered as of 30 September 2018.The Company continued with
development activities toward achieving the revised capability roadmap. Retrofit activities are progressing.
In 2017, the Company entered into discussions with OCCAR and the customer Nations that resulted in the signature of a Declaration ofIntent (“DOI”) on 7 February 2018 agreeing on a global re-baselining of the contract, including a revised aircraft delivery schedule, an
updated technical capability roadmap and a revised retrofit schedule. The DOI represents an important step towards reaching acontractually binding agreement also mitigating the commercial exposure while satisfying customer needs with regard to capabilities andavailability of the aircraft. The Company is working together with OCCAR and the customer Nations on turning the DOI into a contract
amendment.
A detailed review of the programme concluded in the fourth quarter of 2017 including an estimate of the financial impacts of the above
mentioned adaptations on schedule, capabilities and retrofit resulted in an update of the loss making contract provision of € 1,299 million
for the year 2017, thereof € 1,149 million in the fourth quarter 2017 (restated equivalent loss following the implementation of IFRS 15 was€ 992 million for the year 2017, thereof € 726 million in the fourth quarter 2017). Risks remain on development of technical capabilities
and the associated costs, on securing sufficient export orders in time, on aircraft operational reliability in particular with regards to engine,and on cost reductions as per the revised baseline. The year end 2017 assessment remains operationally unchanged as of 30 September
2018. A technical update during 2018 mainly reflecting price escalation resulted in a charge of € 105 million.
The A400M contractual SOC 1, SOC 1.5, SOC 2, SOC 2.5 and SOC 3 development milestones remain to be achieved. SOC 1 fell due
end October 2013, SOC 1.5 fell due end December 2014, SOC 2 end of December 2015 and SOC 2.5 end of October 2017. The
associated termination rights became exercisable by OCCAR on 1 November 2014, 1 January 2016, and 1 January 2017, respectively.
Management judges that it is highly unlikely that any of these termination rights will be exercised.
The profit before financial result and income taxes increased by € +1,010 million to € 2,683 million compared to € 1,673 million in thefirst nine months 2017 (restated), mainly driven by the increase in gross margin and a decrease in other income.
Other income decreased by € -564 million to € 352 million compared to € 916 million in the first nine months 2017, which included thecapital gain from the sale of the defence electronics business at Airbus Defence and Space.

7.

Total Financial Result

Total financial result deteriorated by € -514 million to € -413 million compared to € 101 million in the first nine months 2017. This is mainly
due to the negative impact from foreign exchange valuation of monetary items and the revaluation of financial instruments, partly
compensated by the net effect of the change of treatment of certain financial instruments under IFRS 9.

17

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 20188.

Income Taxes

The income tax expense of € -824 million (first nine months 2017 (restated): € -376 million) corresponds to an effective tax rate of 36.3%(first nine months 2017 (restated): 21.2%). This includes a deferred tax asset impairment, partially offset by the sale of Plant Holdings,
Inc. (see “– Note 3: Acquisitions and Disposals”) and the revaluation of certain equity investments under IFRS 9 (see “– Note 2: Accounting
Policies”), both tax-free.

9.

Earnings per ShareProfit 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)

1 January 30 September 2018
€ 1,453 million
774,762,268€ 1.88

1 January 30 September 2017
€ 1,398 million
773,574,878€ 1.81

Previous year figures are restated due to the application of IFRS 15.

Diluted earnings per share – The Company’s categories of dilutive potential ordinary shares are share-settled Performance Units relating
to Long-Term Incentive Plans (“LTIP”) and the convertible bond issued on 1 July 2015. During the first nine months 2018, the average
price of the Company’s shares exceeded the exercise price of the share-settled Performance Units and therefore 728,928 shares (firstnine months 2017: 492,217 shares) were considered in the calculation of diluted earnings per share. The dilutive effect of the convertible
bond was also considered in the calculation of diluted earnings per share in the first nine months 2018, by adding back € 5 million ofinterest expense to the profit for the period attributable to equity owners of the parent (first nine months 2017: € 5 million) and by including
5,022,990 of dilutive potential ordinary shares.

Profit for the period attributable to equity owners of the parent (Net income),
adjusted for diluted calculation (1)Weighted average number of ordinary shares (diluted) (2)Diluted earnings per share (1)(1)(2)

1 January 30 September 2018

1 January 30 September 2017

€ 1,458 million
780,514,186€ 1.87€ 1,403 million
779,090,085€1.80Previous year figures are restated due to the application of IFRS 15.
Dilution assumes conversion of all potential ordinary shares.

10.

Intangible Assets and Property, Plant and Equipment

Intangible assets increased by € +5,359 million to € 16,988 million (prior year-end: € 11,629 million). Intangible assets mainly relate to
goodwill of € 13,141 million (prior year-end: € 9,141 million). The increase is primarily due to the acquisition of CSALP (see “– Note 3:“Acquisitions and Disposals”).
Property, plant and equipment increased by € +49 million to € 16,659 million (prior year-end: € 16,610 million). Property, plant andequipment includes leased assets of € 64 million (prior year-end: € 52 million).

11.

Investments Accounted for under the Equity Method

Investments accounted for under the equity method decreased by € -77 million to € 1,540 million (prior year-end (restated):€ 1,617 million) and mainly include the equity investments in ArianeGroup, MBDA and ATR.

18

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 201812.

Other Investments and Other Long-Term Financial Assets(In € million)

Other investments
Other long-term financial assets
Total non-current other investments and other long-term financial assets
Current portion of other long-term financial assets
Total

30 September 2018
2,526
1,702
4,228
562
4,790

31 December 2017
2,441
1,763
4,204
529
4,733

Other investments mainly comprise the Company’s participations. The significant participations at 30 September 2018 include theremaining investment in Dassault Aviation amounting to € 1,315 million (prior year-end: € 1,071 million).
Other long-term financial assets and the current portion of other long-term financial assets include other loans in the amount of€ 1,527 million as of 30 September 2018 (prior year-end: € 1,521 million), and the sales finance activities in the form of finance leasereceivables and loans from aircraft financing.

13.

Inventories

Inventories of € 35,052 million (prior year-end (restated): € 29,737 million) increased by € +5,315 million. This is mainly driven by Airbus(€ +4,399 million) and Airbus Defence and Space (€ +619 million). At Airbus, it reflects an increase in work in progress associated with
the A320 programme ramp-up and the back loaded delivery profile, including the impact of late engine deliveries.

14.

Contract Assets, Contract Liabilities and Trade Receivables

As of 30 September 2018, contract assets include receivables from revenue recognised on over time contracts in the amount of € 10,056
million (prior year-end: € 11,349 million) and contract liabilities include customer advance payment received in the amount of € 50,849
million (prior year-end: € 47,580 million).

15.

Provisions(In € million)

30 September 2018
7,677
9,380
17,057
11,547
5,510

Provisions for pensions
Other provisions (1)Total (1)thereof non-current portion (1)thereof current portion (1)(1)

31 December 2017
8,361
7,690
16,051
9,779
6,272

Previous year figures are restated due to the application of IFRS 15.

Other provisions are presented net of programme losses against inventories (see “– Note 13: Inventories”) and include liabilities relative
to acquired customer contracts linked to the acquisition of CSALP (see “– Note 3: “Acquisitions and Disposals”).
A restructuring provision associated with the re-organisation of the Company of € 160 million was recorded at year-end 2016, following
the communication of the plan to the employees and the European Works Council in November 2016. The French social plan was agreed
between the Company and the works council in June 2017. The German social plan was agreed between the Company and the works
councils in September 2017, and the reconciliation of interests were finalized on 21 February 2018
In Airbus Helicopters, the restructuring plan launched in 2016 was signed by the three representative trade unions and validated by theWork Administration Agency (DIRECCTE) in March 2017.
An H225 Super Puma helicopter was involved in an accident on 29 April 2016. Management is cooperating fully with the authorities todetermine the precise cause of the accident. An estimate of the related net future costs has been prepared and is included in otherprovisions.

19

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 201816.

Other Financial Assets and Other Financial Liabilities

Other Financial Assets(In € million)

Positive fair values of derivative financial instruments
OthersTotal non-current other financial assets
Receivables from related companies
Positive fair values of derivative financial instruments
OthersTotal current other financial assets
Total

30 September 2018
1,597
121
1,718
940
467
400
1,807
3,525

31 December 2017
2,901
79
2,980
992
663
324
1,979
4,959

30 September 2018
977
5,752
2,787
9,516
1,434
319
169
578
2,500
12,01631 December 2017
1,127
5,537
40
6,704
1,144
364
199
343
2,050
8,754

30 September 2018
887
31
105
1,023
2,755
499
243
674
4,171
5,194

31 December 2017
868
15
92
975
1,892
522
146
377
2,937
3,912

30 September 2018
289
289
2,445
2,747
5,192
5,481

31 December 2017
298
298
1,397
2,512
3,909
4,207

Other Financial Liabilities(In € million)

Liabilities for derivative financial instruments
European Governments refundable advances
Others (1)Total non-current other financial liabilities (1)Liabilities for derivative financial instruments
European Governments refundable advances
Liabilities to related companies (1)OthersTotal current other financial liabilities (1)Total (1)(1)

Previous year figures are restated due to the application of IFRS 15.

17.

Other Assets and Other Liabilities

Other Assets(In € million)

Cost to fulfil a contract (1)Prepaid expenses (1)Others (1)Total non-current other assets (1)Value added tax claims
Cost to fulfil a contract (1)Prepaid expenses (1)OthersTotal current other assets (1)Total (1)(1)

Previous year figures are restated due to the application of IFRS 15.

Other Liabilities(In € million)

Others (1)Total non-current other liabilities (1)Tax liabilities (excluding income tax)
OthersTotal current other liabilities (1)Total (1)(1)

Previous year figures are restated due to the application of IFRS 15.

20

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 201818.

Total Equity

The Company’s shares are exclusively ordinary shares with a par value of € 1.00. The following table shows the development of thenumber of shares issued and fully paid:
30 September 2018774,556,062
1,317,465
00775,873,527(679,940)
775,193,587(In number of shares)

Issued as at 1 January
Issued for ESOP
Issued for exercised options
Cancelled
Issued at end of period
Treasury shares
Outstanding at end of period

31 December 2017
772,912,869
1,643,193
00774,556,062(129,525)
774,426,537

Holders of ordinary shares are entitled to dividends and to one vote per share at general meetings of the Company.
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts to € 9,531 million (prior year-end(restated): € 10,740 million) representing a decrease of € -1,209 million. This is due to a decrease in other comprehensive income of€ -1,604 million, principally related to the mark to market revaluation of the hedge portfolio of € -1,360 million, and a dividend payment of€ -1,161 million (€ 1.35 per share), partly compensated by a net income for the period of € 1,453 million.
The non-controlling interests (“NCI”) from non-wholly owned subsidiaries decreased to € -5 million as of 30 September 2018
(prior year-end (restated): € 2 million).

19.

Net Cash

The net cash position provides financial flexibility to fund the Company’s operations, to react to business needs and risk profile and toreturn capital to the shareholders.

(In € million)

Cash and cash equivalents
Current securities
Non-current securities
Gross cash position
Short-term financing liabilities
Long-term financing liabilities
Total

30 September 2018
5,603
2,401
10,321
18,325(3,638)(7,500)7,187

31 December 201712,016
1,627
10,944
24,587(2,213)(8,984)
13,39030 September 2018
2,256
1,793
1,498
56
5,603
0
5,603

31 December 2017
3,672
6,256
2,085
8
12,021
5
12,016

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

Bank account and petty cash
Short-term securities (at fair value through profit and loss)
Short-term securities (at fair value through other comprehensive income) (1)OthersTotal cash and cash equivalents
Recognised in disposal groups classified as held for sale
Recognised in cash and cash equivalents(1)

IFRS 9 new classification category (prior year-end: available-for-sale).

Only securities with a maturity of three months or less from the date of the acquisition, that are readily convertible to known amounts ofcash and which are subject to an insignificant risk of changes in value, are recognised in cash equivalents.

21

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

Financing Liabilities(In € million)

30 September 2018
6,535
258
392
314
1
7,500
1,982
90
139
15
1,412
3,638
11,138

Bonds
Liabilities to financial institutions
Loans
Liabilities from finance leases
Others (1)Long-term financing liabilities
Bonds
Liabilities to financial institutions
Loans
Liabilities from finance leases
Others (1)Short-term financing liabilities
Total
(1)

31 December 2017
6,551
1,722
385
325
1
8,984
512
290
144
17
1,250
2,213
11,197

Included in “others” are financing liabilities to joint ventures.

Long-term financing liabilities, mainly comprising bonds and liabilities to financial institutions, decreased by € -1,484 million to € 7,500
million (prior year-end: € 8,984 million), as a result of early settlement of liabilities to financial institutions with the European Investment
Bank (“EIB”).
Short-term financing liabilities increased by € +1,425 million to € 3,638 million (prior year-end: € 2,213 million), mainly related to higher
commercial programmes.

20.

Information about Financial Instruments

The following table presents the composition of derivative financial instruments:(In € million)

30 September 2018
1,597
467
2,064
(977)
(1,434)(2,411)(347)

Non-current positive fair values
Current positive fair values
Total positive fair values of derivative financial instruments
Non-current negative fair values
Current negative fair values
Total negative fair values of derivative financial instruments
Total net fair values of derivative financial instruments

31 December 2017
2,901
663
3,564
(1,127)(1,144)(2,271)
1,293

The total net fair value of derivative financial instruments decreased by € -1,640 million to € -347 million (prior year-end: € 1,293 million)
as a result of the strengthened US dollar versus the euro associated with the mark to market valuation of the hedge portfolio.
The volume of hedged US dollar-contracts was US$ 84.1 billion as at 30 September 2018 (prior year-end: US$ 88.7 billion). The US dollar
spot rate was 1.16 US$/€ and 1.20 US$/€ at 30 September 2018 and at 31 December 2017, respectively. The average US dollar hedge
rate for the hedge portfolio of the Company remains at 1.23 US$/€ as at 30 September 2018.

Carrying Amounts and Fair Values of Financial Instruments
Fair values of financial instruments have been determined with reference to available market information at the end of the reporting period
and the valuation methodologies as described in detail in Note 35.2 to the 2017 IFRS Consolidated Financial Statements. For the firstnine months 2018, the Company has applied the same methodologies for the fair value measurement of financial instruments. In addition,
the Company has remeasured non-listed equity investments for which no quoted market prices are available at fair value and determined
the fair values of these equity investments using common valuation methods such as net asset values or a comparable company valuation
multiples technique.
Carrying amount is a reasonable approximation of fair value for all classes of financial instruments listed in the first table of Note 35.2 tothe 2017 IFRS Consolidated Financial Statements, with the exception of:(In € million)

Financing liabilities
Issued bonds and commercial papers
Liabilities to banks and other financing liabilities

30 September 2018
Book Value
Fair Value(8,517)(2,292)

22(9,125)(2,300)31 December 2017
Book Value
Fair Value(7,063)(3,791)(7,363)(3,838)

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

Fair Value Hierarchy
Depending on the extent the inputs used to measure fair values rely on observable market data, fair value measurements may behierarchised according to the following levels of input: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 – fair values measured based on Level 2
input typically rely on observable market data such as interest rates, foreign exchange rates, credit spreads or volatilities;

Level 3: inputs for the asset or liability that are not based on observable market data – fair values measured based on Level 3
input rely to a significant extent on estimates derived from the Company’s’ own data and may require the use of assumptions
that are inherently judgemental and involve various limitations.

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 certain extent on Level 3 input.
The following table presents the carrying amounts of the financial instruments held at fair value across the three levels of the fair value
hierarchy:(In € million)

Level 1

Financial assets measured at fair value
Equity instruments
Derivative instruments
Securities
Cash equivalents
Total
Financial liabilities measured at fair value
Derivative instruments
Other financial liabilities
Total

30 September 2018
Level 2
Level 3

Total

Level 131 December 2017
Level 2
Level 3

Total

2,067
0
10,367
1,793
14,227

0
1,908
2,355
1,498
5,761

459
156
0
0
615

2,526
2,064
12,722
3,291
20,6031,963
010,995
6,256
19,214

0
3,564
1,576
2,085
7,225

0
0
0
0
0

1,963
3,564
12,571
8,341
26,439000(2,343)0(2,343)(15)(2,239)(2,254)(2,358)(2,239)(4,597)000(2,214)0(2,214)(3)
0(3)(2,217)0(2,217)

Financial liabilities
Written Commodity
put options on
swap
Earn-out
Total NCI interests agreements agreements
3
(28)
(11)
(10)
0
0
(6)
0
0
6
0
0
(3)
0
5
10
0
(22)
(12)
0

Total
(49)
(6)
6
15
(34)

The development of financial instruments of Level 3 is as follows:(In € million)

Balance at 1 January 2017
Profit or loss
Other comprehensive income
Settlements
Balance at 30 September 2017
Balance at 1 January 2018, IAS 39
IFRS 9 implementation
Business combination (1)Profit or loss
Other comprehensive income
Settlements
Balance at 30 September 2018
(1)

Financial assets
Commodity
swap
agreements Derivatives Participations
3
0
0
0
0
0
0
0
0
(3)
0
0
0
0
0
0
0
0
0
0
0
0

0
0
156
0
0
0
156

0
478
0
0
(8)
(11)
459

0
478
156
0
(8)
(11)
615

0
0
(2,239)000(2,239)

(3)
0
0
(46)
0
34
(15)

0
0
0
0
0
0
0

(3)
0
(2,239)(46)
034(2,254)

Related to CSALP acquisition (see “– Note 3: Acquisitions and Disposals”).

The financial liabilities measured at fair value that are classified as Level 3 consist mainly of the written put options on non-controllinginterests resulting from the acquisition of CSALP (see “– Note 3: Acquisitions and Disposals”).
The Company has remeasured certain unlisted equity investments as described in “– Note 2: Accounting Policies”. The fair value of someof these equity investments has been determined using valuation methods such as net asset value technique.
For short-term commodity contracts, the notional amounts, being the unobservable input, are set with reference to monthly commodity
volumes that management expects to purchase based on planning forecasts. The fair values are otherwise determined using observable
market data including quoted interest rates and pricing information obtained from recognised vendors of market data.

23

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 201821.

Litigation and Claims

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

WTO
Although the Company is not a party, the Company is supporting the European Commission in litigation before the WTO. Following its
unilateral withdrawal from the 1992 EU-US Agreement on Trade in Large Civil Aircraft, the US lodged a request on 6 October 2004 to
initiate proceedings before the WTO. On the same day, the EU launched 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 of 2040 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 report in 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, thematter was referred to the WTO for further review pursuant to WTO rules. A decision was published in May 2018 in which the WTO
clarified that the EU and the Company have achieved compliance in respect of the majority of the subsidies at issue but considered thatsome remaining obligations required minor adjustments, which have since been addressed by the EU. Because the US did not agree on
the EU compliance efforts, the US requested the resumption of Article 22.6 arbitration proceedings to quantify the amount ofcountermeasures against the EU. In September 2018, the US requested an annual amount of countermeasures of US$ 11.2 billion. The
Company considers the US' request unjustified given the measures taken to comply with the Appellate Body decision of May 2018. The
Company has worked with the European Commission and the Member State governments to fully implement the WTO findings in theAppellate Body’s decision and asserts that the new measures taken render the sanctions request moot.
On 23 March 2012, the WTO adopted the Appellate Body’s final report in the case brought by the EU assessing funding to Boeing fromthe US. On 23 September 2012, the US informed the WTO that it had taken appropriate steps to bring its measures fully into conformity
with its WTO obligations, and to comply with the WTO’s recommendations and rulings. Because the EU did not agree, the matter is now
under WTO review pursuant to WTO rules.
Exact timing of further steps in the WTO litigation process is subject to further rulings and to negotiations between the US and the EU.
Unless a settlement, which is currently not under discussion, is reached between the parties, the litigation is expected to continue forseveral years.

GPT
In August 2012, the UK Serious Fraud Office (“SFO”) announced that it had opened a formal criminal investigation in relation to GPTSpecial Project Management Ltd (“GPT”), a subsidiary operating in Saudi Arabia that the Company acquired in 2007. The investigation
relates to issues initially raised by a whistleblower concerning contractual arrangements originating prior to GPT’s acquisition andcontinuing thereafter. The Company has engaged with the SFO throughout and continues to actively cooperate with the investigation.

Eurofighter Austria
In February 2017, the Austrian Federal Ministry of Defence raised criminal allegations against Airbus Defence and Space GmbH andEurofighter Jagdflugzeug GmbH for wilful deception and fraud in the context of the sale of the Eurofighter aircraft to Austria and respective
damage claims. After the Austrian Federal Ministry of Defence raised its criminal allegations, the Austrian public prosecutor opened aninvestigation against Airbus Defence and Space GmbH, Eurofighter Jagdflugzeug GmbH and former and current employees of the twoentities. The Company has filed several submissions to the Vienna Public Prosecutor in response to the allegations of deception in the
procurement of Eurofighter combat aircraft made by the Austrian Defence Minister. The Company is cooperating fully with the authorities.

Investigation by the UK SFO and France’s PNF & Related Commercial Litigation
In the context of review and enhancement of its internal compliance improvement programme, the Company discovered misstatements
and omissions relating to information provided in respect of third party consultants in certain applications for export credit financing for theCompany’s customers. In early 2016, the Company informed the UK, German and French Export Credit Agencies (“ECAs”) of theirregularities it had discovered. The Company made a similar disclosure to the UK Serious Fraud Office (“SFO”). In August 2016, the SFO
informed the Company that it had opened an investigation into allegations of fraud, bribery and corruption in the civil aviation business ofAirbus relating to irregularities concerning third party consultants (business partners). In March 2017, France’s Parquet National Financier(“PNF”) informed the Company that it had also opened a preliminary investigation into the same subject and that the two authorities would
act in coordination going forward. The Company is cooperating fully with both authorities including in respect of potential issues acrossthe Company's business. As part of the Company's engagement with the US authorities, the latter have requested information relating toconduct forming part of the SFO/PNF investigation that could fall within US jurisdiction. The Company is cooperating with the US
authorities in close coordination with the SFO and PNF. The SFO and PNF investigations and any penalties potentially levied as a result
could have negative consequences for the Company. The potential imposition of any monetary penalty (and the amount thereof) or other24

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2018

sanction including tax liability arising from the SFO and PNF investigations will depend on the ultimate factual and legal findings of theinvestigation, and could have a material impact on the financial statements, business and operations of the Company. However, at thisstage it is too early to determine the likelihood or extent of any such possible consequence. Investigations of this nature could also resultin (i) civil claims or claims by shareholders against the Company (ii) adverse consequences on the Company’s ability to obtain or continue
financing for current or future projects (iii) limitations on the eligibility of group companies for certain public sector contracts and/or (iv)damage to the Company’s business or reputation via negative publicity adversely affecting the Company’s prospects in the commercial
market place.
In light of these investigations, the Company enhanced certain of its policies, procedures and practices, including ethics and complianceand export control. The Company has revised and implemented improved procedures, including those with respect to its engagement ofconsultants and other third parties, in particular in respect of sales support activities. The Company believes that these enhancements to
its controls and practices will best position it for the future, particularly in light of advancements in regulatory standards. Several consultants
and other third parties have initiated commercial litigation and arbitration against the Company seeking relief. The enhancement of its
controls and practices has led to additional commercial litigation and arbitration against the Company and may lead to other civil law orcriminal law consequences in the future, which could have a material impact on the financial statements, however at this stage it is too
early to determine the likelihood or extent of any liability.

ECA Financing
A first ECA application since 2016 for financing submitted by the Company under the process previously agreed with the ECAs was
accepted by the ECAs and ECA cover was granted in Q1 2018. We anticipate a return to ECA cover in 2018 for a limited number oftransactions while the level of appetite for commercial financing remains high.

Other Investigations
The Company is cooperating fully with the authorities in a judicial investigation in France related to Kazakhstan. In this spirit, the Company
asked to be interviewed by the investigating magistrates and has been granted the status of “assisted witness” in the investigation.
The Company is cooperating with French judicial authorities pursuant to a request for mutual legal assistance made by the governmentof Tunisia in connection with historical aircraft sales.
Following a review of its US regulatory compliance procedures, the Company has discovered and subsequently informed relevant US
authorities of its findings concerning certain inaccuracies in filings made with the US Department of State pursuant to Part 130 of the US
International Traffic in Arms Regulations (ITAR) (a US export control regulation). The Company is cooperating with the US authorities.
The Company is unable to reasonably estimate the time it may take to resolve the matter or the amount or range of potential loss, penalty
or other government action, if any, that may be incurred in connection with this matter.

Other Disputes
In May 2013, the Company was notified of a commercial dispute following the decision taken by the Company to cease a partnership forsales support activities in some local markets abroad. The Company believes it has solid grounds to legally object to the alleged breachof a commercial agreement. However, the consequences of this dispute and the outcome of the proceedings cannot be fully assessed at
this stage. The arbitration will not be completed until 2019 at the earliest.
In the course of another commercial dispute, the Company received a statement of claim by the Republic of China (Taiwan) alleging
liability for refunding part of the purchase price of a large contract for the supply of missiles by subsidiary Matra Défense S.A.S., which
the customer claims it was not obliged to pay. An arbitral award was rendered on 12 January 2018 with a principal amount of € 104 million
plus interest and costs against Matra Défense S.A.S. Post-award proceedings are currently underway.

22.

Number of Employees

Airbus79,907
77,16330 September 201831 December 201723.

AirbusHelicopters
19,797
20,108

AirbusDefence andSpace
32,65432,171

Consolidated
Airbus132,358
129,442

Events after the Reporting Date

On 1 October 2018, the Company completed the disposal of its subsidiary Compañía Española de Sistemas Aeronáuticos, S.A.
(“CESA”) to Héroux-Devtek Inc. (“Héroux-Devtek”), for a purchase price of € 114 million.

25