Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

Unaudited Condensed IFRS Consolidated
Financial Information of Airbus Group N.V.
for the nine-month period ended 30 September 2014
Unaudited Condensed IFRS Consolidated Income Statements ....................................................... 2
Unaudited Condensed IFRS Consolidated Income Statements for the third quarter of 2014 and2013 ......................................................................................................................................................... 3
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income ...................... 4
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income for the third
quarter 2014 and 2013 ........................................................................................................................... 5
Unaudited Condensed IFRS Consolidated Statements of Financial Position ................................ 6
Unaudited Condensed IFRS Consolidated Statements of Cash Flows ........................................... 7
Unaudited Condensed IFRS Consolidated Statements of Changes in Equity ................................ 8
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements as at
30 September 2014 ................................................................................................................................ 91.

The Company ............................................................................................................................ 92.

Accounting policies .................................................................................................................. 93.

Acquisitions and other M&A transactions ........................................................................... 13

4.

Segment information .............................................................................................................. 14

5.

EBIT pre-goodwill impairment and exceptionals ................................................................ 16

6.

Significant income statement items ..................................................................................... 16

7.

Significant items of the statement of financial position ..................................................... 17

8.

Significant cash flow items.................................................................................................... 20

9.

Financial instruments ............................................................................................................. 21

10. Number of shares ................................................................................................................... 24
11. Earnings per share ................................................................................................................. 25
12. Related party transactions..................................................................................................... 25
13. Number of employees ............................................................................................................ 26
14. Litigation and claims .............................................................................................................. 26
15. Subsequent events ................................................................................................................. 28

1

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

Unaudited Condensed IFRS Consolidated Income Statements

Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expenses

1 January 30 September 2014
M€%
40,497100-34,099
-84
6,398
16

1 January 30 September 2013 *)M€%
38,947100-33,005
-85
5,942
15

DeviationM€
1 550-1 094456-2,012-5-2,138-5

126-2,376-6-2,152

-6

-224

235

0

129

0

106

Other income
Share of profit from associates
under the equity method and otherincome from investments
Profit before finance result andincome taxes
Interest income
Interest expense
Other financial result
Finance result
Income taxes
Profit for the period

304

1

319

1

-15

2,549
117
-395
-334
-612
-529
1,408

6
0
-1
-1
-2
-1
3

2,100
137
-400
-172
-435
-460
1,205

5
0
-1
0
-1
-1
3

449
-20
5
-162
-177
-69
203

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

1,399
9

3
0

1,203
2

3
0

196
7

Earnings per share
Basic
Diluted
*)

€

€

€

1,79
1,78

1,51
1,51

0,28
0,27

Previous year’s figures are adjusted due to the application of IFRS 11.

2

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

Unaudited Condensed IFRS Consolidated Income Statements for the third
quarter of 2014 and 2013

Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expenses

1 July 30 September 2014
M€%
13,297100-11,341
-85
1,956
15

1 July 30 September 2013 *)M€%
13,277100-11,348
-85
1,929
15

Deviation
M€
20
7
27

-641

-5

-692

-5

51

-812

-6

-753

-6

-59

71

1

36

0

35

Other income
Share of profit from associates
under the equity method and otherincome from investments
Profit before finance result andincome taxes
Interest income
Interest expense
Other financial result
Finance result
Income taxes
Profit for the period

156

1

121

1

35

730
38
-127
-271
-360
-103
267

6
0
-1
-2
-3
-1
2

641
53
-140
69
-18
-177
446

5
0
-1
0
-1
-1
3

89
-15
13
-340
-342
74
-179

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

264
3

2
0

445
1

3
0

-181
2

Earnings per share
Basic
Diluted
*)

€

€

€

0,34
0,34

0,56
0,56

-0,22
-0,22

Previous year’s figures are adjusted due to the application of IFRS 11.

3

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Income1 January 30 September 2014

1 January 30 September 2013 *)

1,408

1,205

-749

-185

-35

-21

229

61

170

-78

-4,206

1,254

39

-2

-31

4

Tax on items that will be reclassified to profit or loss

1,302

-384

Other comprehensive income, net of tax-3,281

649

Total comprehensive income of the period-1,873

1,854-1,8730-1,873

1,860
-6
1,854

in M €
Profit for the period
Items that will not be reclassified to profit or loss:
Actuarial losses on defined benefit plans
Actuarial losses on defined benefit plans from investments
using the equity method
Tax on items that will not be reclassified to profit or loss
Items that will be reclassified to profit or loss:
Foreign currency translation differences for foreign operations
Net change in fair value of cash flow hedges
Net change in fair value of available-for-sale financial assets
Changes in other comprehensive income from investments
accounted for using the equity method

Attributable to:Equity owners of the parent
Non-controlling interests
Total comprehensive income of the period*)

Previous year’s figures are adjusted due to the application of IFRS 11.

4

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Income for the third quarter 2014 and 2013
1 July 30 September 2014

1 July 30 September 2013 *)

267

446

-299

153

-38

-15

98

-35

184

-122

-3,882

1,821

69

51

-4

-3

Tax on items that will be reclassified to profit or loss

1,211

-570

Other comprehensive income, net of tax-2,661

1,280

Total comprehensive income of the period-2,394

1,726-2,386-8-2,394

1,726
0
1,726

in M €
Profit for the period
Items that will not be reclassified to profit or loss:
Actuarial losses on defined benefit plans
Actuarial losses on defined benefit plans from investments
using the equity method
Tax on items that will not be reclassified to profit or loss
Items that will be reclassified to profit or loss:
Foreign currency translation differences for foreign operations
Net change in fair value of cash flow hedges
Net change in fair value of available-for-sale financial assets
Changes in other comprehensive income from investments
accounted for using the equity method

Attributable to:Equity owners of the parent
Non-controlling interests
Total comprehensive income of the period*)

Previous year’s figures are adjusted due to the application of IFRS 11.

5

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

Unaudited Condensed IFRS Consolidated Statements of Financial Position
30 September 2014M€%

31 December 2013 *)M€%

Deviation
M€%

12,786
16,16714
18

12,50015,654

14
17

286
513

2
3

3,853

4

3,858

4

-5

0

1,523

2

1,756

2

-233

-13

2,204
4,737
5,061
46,331

2
5
6
51

3,727
3,733
4,298
45,5264
4
5
50-1,523
1 004
763
805

-41
27
18
2

Total assets

27,343
5,831
4,260
2,202
5,156
44,792
91,123

30
6
5
2
6
49
100

24,023
6,628
4,311
2,585
7,201
44,74890,274

27
7
5
3
8
50
100

3,320
-797
-51
-383
-2,045
44
849

14
-12
-1
-15
-28
0
1

Total equity
Equity attributable to equity owners of theparentCapital stockReserves

785
7,570

1
8

783
7,202

1
8

2
368

0
5

Accumulated other comprehensive income

212

0

2,929

3

-2,717

-93

-18
8,549
4
8,553

0
9
0
9

-50
10,86442
10,906

0
12
0
12

32
-2 315-38-2 353

-64
-21
-90
-22

9,710
5,180
1,169
20,75136,810

11
6
1
23
41

9,604
3,804
1,454
18,15533,017

11
4
2
20
37

106
1,376
-285
2,596
3,793

1
36
-20
14
11

4,678
1,893
9,627
609
28,95345,76082,57091,123

5
2
11
1
31
50
91
100

5,222
1,826
9,668
616
29,01946,351
79,36890,274

6
2
11
0
32
51
88
100

-544
67
-41
-7
-66
-591
3 202
849

-10
4
0
-1
0
-1
4
1

Non-current assets
Intangible assets
Property, plant and equipment
Investments in associates under the equity
methodOther investments and long-term financial
assetsOther non-current assets
Deferred tax assets
Non-current securities
Current assets
Inventories
Trade receivables
Other current assets
Current securities
Cash and cash equivalents

Treasury shares
Non-controlling interests
Non-current liabilities
Non-current provisions
Long-term financing liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Current provisions
Short-term financing liabilities
Trade liabilities
Current tax liabilities
Other current liabilities
Total liabilities
Total equity and liabilities*)

Previous year’s figures are adjusted due to the application of IFRS 10 and 11.

6

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

Unaudited Condensed IFRS Consolidated Statements of Cash Flowsin M €
Profit for the period attributable to equity owners of the parent (Net income)*)Profit for the period attributable to non-controlling interests

1 January 30 September 2014

1 January 30 September 2013

1,399

1,203

9

2

Adjustments to reconcile profit for the period to cash (used for) operating activities
Depreciation and amortization*)

1,468

1,340

*)

345

384

*)

325

241

4

-121

Valuation adjustments
Deferred tax expense

Change in income tax assets, income tax liabilities and provisions for income tax
Results on disposals of non-current assets

-97

-1

Results of companies accounted for by the equity method *)

-257

-268

85

-240

Change in other operating assets and liabilities *)-349-4,168-35-5,431

Cash (used for) operating activities *)-1,236-2,926-1,639-2,059Change in current and non-current provisions *)Reimbursement from / contribution to plan assets

Investments:- Purchases of intangible assets, PPE *)- Proceeds from disposals of intangible assets, PPE *)168

4- Acquisitions of subsidiaries and joint ventures (net of cash)

-47

-15

- Proceeds from disposals of subsidiaries (net of cash)- Payments for investments in associates and otherinvestments and long-term financial assets *)

-34

0

-30

-257

117

354

- Proceeds from disposals of associates and otherinvestments and long-term financial assets *)- Dividends paid by companies valued at equity

*)

136

100

-160
-1,489793-1,080Change in long-term and short-term financing liabilities *)

900

2,578

Cash distribution to Airbus Group N.V. shareholders

-587

-467

Dividends paid to non-controlling interests-1-1

Changes in capital and non-controlling interests

47

Change in treasury shares

102

219
-1,913

Cash provided by financing activities *)Effect of foreign exchange rate changes and other valuation adjustments on cash andcash equivalents *)

461

416

219
-2 045-63-3,653

Cash and cash equivalents at beginning of period *)

7,201

8,171

Cash and cash equivalents at end of period *)

5,156

4,518

Change of securities *)Cash (used for) investing activities*)

Net decrease of cash and cash equivalents*)*)

Previous year’s figures are adjusted due to the application of IFRS 10 and 11.

7

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

Unaudited Condensed IFRS Consolidated Statements of Changes in Equity
Equityattributable toequity owners of Non-controlling
the parent
interests

in M €
Balance at 1 January 2013

10,40317

Total
10,420

-143

-1

-144

10,26016

10,276

1,203

2

1,205

*)

657

-8

649

*)

1,860

-6

1,854

-467

-1

-468

216

3

219

Equity transactions (IAS 27)

-117

18

-99

Change in treasury shares-1,9130-1,913Retrospective adjustment*)

Balance at 1 January 2013, adjusted
Profit for the period*)

Other comprehensive income

Total comprehensive income
Cash distribution to shareholders/ dividends tonon-controlling interests
Capital increase

OthersBalance at 30 September 2013, adjusted

78

0

78

9,917

30

9,947

11,011

43

11,054*)

Balance at 1 January 2014
*)

-147

-1

-148

10,86442

10,906

Profit for the period

1,399

9

1,408

Other comprehensive income-3,272-9-3,281

Total comprehensive income
Cash distribution to shareholders/ dividends tonon-controlling interests
Capital increase-1,8730-1,873

-587

-1

-588

Retrospective adjustment

Balance at 1 January 2014, adjusted*)

Change in treasury shares
OthersBalance at 30 September 2014
*)

47

0

47

102

0

102

-4

-37

-41

8,549

4

8,553

Previous year’s figures are adjusted due to the application of IFRS 11.

8

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at 30 September 2014
1. The Company
The accompanying Unaudited Condensed IFRS Consolidated Financial Statements present theoperations of Airbus Group N.V. (formerly European Aeronautic Defence and Space Company
EADS N.V.) and its subsidiaries (the “Group”), a Dutch public limited liability company (Naamloze
Vennootschap) legally seated in Amsterdam (current registered office at Mendelweg 30, 2333 CS
Leiden, The Netherlands), and are prepared and reported in Euros (“€”). On 2 January 2014, theGroup has been rebranded from EADS to Airbus Group as part of a wider reorganization including
integration of the Group’s space and defence activities with associated restructuring measures.
The Group’s core business is the manufacturing of commercial aircraft, civil and militaryhelicopters, commercial space launch vehicles, missiles, military aircraft, satellites, defence
systems and defence electronics and rendering of services related to these activities. The
Unaudited Condensed IFRS Consolidated Financial Statements for the nine-month period ended
30 September 2014 were authorized for issue by the Airbus Group Board of Directors on 13
November 2014.

2. Accounting policies
These Unaudited Condensed Consolidated Financial Statements have been prepared inaccordance with International Financial Reporting Standards (“IFRS”) issued by the International
Accounting Standards Board (“IASB”) as endorsed by the European Union (EU) as at 30
September 2014 and Part 9 of Book 2 of the Netherlands Civil Code. They comprise (i) IFRS, (ii)International Accounting Standards (“IAS”) and (iii) Interpretations originated by the IFRSInterpretations Committee (“IFRIC”) or former Standards Interpretation Committee (“SIC”).
These Unaudited Condensed IFRS Interim Consolidated Financial Statements are prepared incompliance with IAS 34 and should be read in conjunction with Airbus Group’s (previously EADS)
Consolidated Financial Statements as of 31 December 2013. Except for the amended Standards
to be applied for the first time in the first nine months 2014 (mentioned below in the next section),
Airbus Group’s accounting policies and techniques are unchanged compared to 31 December
2013.
Financial reporting rules applied for the first time in the first nine months 2014:
The following new or amended Standards were applied for the first time in the first nine months
2014 and are effective for Airbus Group as of 1 January 2014. If not otherwise stated, their first
application has not had a material impact on Airbus Group’s Consolidated Financial Statements aswell as its basic and diluted earnings per share.
Amendments to IAS 32 “Financial Instruments: Presentation” clarify the IASB’s requirements foroffsetting financial instruments.
Amendments to IAS 36 “Impairment of Assets” modify the recoverable amount disclosures for nonfinancial assets.
Amendments to IAS 39 “Financial Instruments: Recognition and Measurement” provide an
exception to the requirement for the discontinuation of hedge accounting in IAS 39 and IFRS 9 in

914.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

circumstances when a hedging instrument is required to be novated to a central counterparty as aresult of laws or regulations.
The IASB issued IFRS 10 “Consolidated Financial Statements”, IFRS 11 “Joint Arrangements”,
IFRS 12 “Disclosure of Interests in Other Entities” and consequential amendments to IAS 27“Separate Financial Statements” and amendments to IAS 28 “Investments in Associates and Joint
Ventures” as well as the Transition Guidance (Amendments for IFRS 10, IFRS 11 and IFRS 12).
IFRS 10 supersedes the requirements related to Consolidated Financial Statements in IAS 27“Consolidated and Separate Financial Statements” (amended 2008) as well as SIC 12“Consolidation – Special Purpose Entities”. IFRS 11 supersedes IAS 31 “Interests in Joint
Ventures” (amended 2008) and SIC 13 “Jointly Controlled Entities – Non-Monetary Contributions
by Venturers”. IFRS 12 replaces disclosure requirements in IAS 27, IAS 28 and IAS 31.
IFRS 10 defines the principle of control and establishes control as the sole basis for determining
which entity should be consolidated in the Consolidated Financial Statements: An investor controls
an investee when it is exposed, or has rights, to variable returns from its involvement with theinvestee and has the ability to affect those returns through its power over the investee. The
standard provides additional guidance to determine control in cases difficult to assess such as insituations where an investor holds less than a majority of voting rights, but has the practical ability
to direct the relevant activities of the investee unilaterally by other means as well as in cases ofagency relationships which were neither addressed by IAS 27 nor by SIC 12.
IFRS 11 provides guidance for the accounting of joint arrangements by focusing on the rights andobligations arising from the arrangement. The standard distinguishes between two types of joint
arrangements: joint operations and joint ventures. A joint operation is a joint arrangement whereby
the parties that have joint control of the arrangement (i.e. joint operators) have rights to the assets,
and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement
whereby the parties that have joint control of the arrangement (i.e. joint venturers) have rights tothe net assets of the arrangement. IFRS 11 requires a joint operator to recognize and measure theassets and liabilities (and recognize the related revenues and expenses) in relation to its interest in
the arrangement applicable to the particular assets, liabilities, revenues and expenses. A joint
venturer is required to recognize an investment and to account for this investment using the equity
method. The proportionate consolidation method may no longer be used for joint ventures.
IFRS 12 provides disclosure requirements for all forms of interests in other entities, including
subsidiaries, joint arrangements, associates, structured entities (formerly referred to as “special
purpose entities”) and off-balance sheet vehicles in one single standard. The standard requires anentity to disclose information that enables users of financial statements to evaluate the nature of,and risks associated with, its interests in other entities and the effects of those interests on its
financial position, financial performance and cash flows.
The first time application of IFRS 10 and IFRS 11 has an impact on Airbus Group’s consolidation
scope: The application of the new control concept as defined by IFRS 10 resulted in the exclusionof three special purpose entities which were previously fully consolidated under IAS 27 and SIC 12
from the consolidation scope and the consolidation of two special purpose entities formerly notconsolidated. Additionally, twelve entities which were previously classified as joint ventures under
IAS 31 and consolidated by using the proportional consolidation method in accordance with theAirbus Group accounting policy choice under IAS 28 are now accounted for using the equity
method as described above under IFRS 11. This had a material impact on the Group’s financial
statement. The first time application of IFRS 11 did not result in any reassessment regarding theclassification of Airbus Group entities as joint ventures under IAS 31.

10

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

The following tables summarise the impacts on the comparative information on the Group’s
financial position, income statement and statement of cash flows resulting from the change inconsolidation scope:

Condensed consolidated statement of financial position as at 31 December 2013
As previously
reported

IFRS 10 and 11

As restatedIntangible assets

13,653-1,153

12,500Property, plant & equipment

15,925-271

15,654

Investment in associates

2,902

956

3,858

Other non-current assets

13,733-219

13,514

46,213-687

45,526Inventories

25,060-1,03724,023

Trade receivables

7,239

-611

6,628

Other current assets

7,034

-138

6,896

Cash and cash equivalents

7,765

-564

7,201

in M €
Non-current assets

Current assets

47,098-2,35044,748

Total assets

93,311-3,037

90,274

Total equity

11,054-148

10,906

Non-current provisions

10,046

-442

9,604

Other non-current liabilities

23,630-217

23,41333,676-659

33,017

Current provisions

5,323

-101

5,222

Trade liabilities

10,372

-704

9,668

Other current liabilities

32,886-1,42531,461

48,581-2,23046,351

93,311-3,037

90,274Non-current liabilities

Current liabilities

Total equity and liabilities11

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

Condensed consolidated income statement for the first nine months ended 30 September 2013
As previously
reported
39,966-33,789
6,177-2,253-2,179in M €
Revenues
Cost of sales
Gross Margin
Selling, administrative & other expenses
Research and development expenses
Other income
Share of profit from associates and other income frominvestments
Profit before finance result and income taxes
Interest result
Other financial result
Finance result
Income taxes
Profit for the period

IFRS 10 and 11

As restated118-1,019
784
-235
115
27
11

38,947-33,005
5,942-2,138-2,152
129

252
2,115
-257
-188
-445
-473
1,197

67
-15
-6
16
10
13
8

319
2,100
-263
-172
-435
-460
1,205

IFRS 10 and 11

As restated

-42
133
-42
6
55

-2,926-1,080416-63-3,653Condensed consolidated statement of cash flow as of 30 September 2013
As previously
reported-2,884-1,213458-69-3,708in M €Cash (used for) operating activities
Cash (used for) investing activities
Cash provided by financing activities
OthersNet decrease of cash and cash equivalents

As of 1 January 2013, the impacts resulting from the change in consolidation scope on the Group’s
financial position are in the same order of magnitude and restated on a consistent basis aspresented above for 31 December 2013.

12

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

3. Acquisitions and other M&A transactions
On 28 February 2014, EADS North America, Inc., Herndon (VA, USA) sold 100% of the assets
and liabilities of its Test and Services division to Astronics Corp., East Aurora (NY, USA), for a
total consideration of 51 M €.
On 7 March 2014, Astrium Services GmbH, Ottobrunn (Germany) disposed of 100% of the shares
of ND Satcom GmbH, Immenstaad (Germany) to Quantum Industries S.à.r.l., Luxembourg
st(Luxembourg) with economic effect as of March 1 , 2014, leading to a negative consideration of
9 M €.
On 10 July 2014, Airbus Defence & Space sold its Test & Services activities to a consortium
consisting of ACE Management S.A., Paris (France) and IRDI S.A., Toulouse (France). In the
Unaudited Condensed IFRS Consolidated Financial Statements as at 30 June 2014 the assets
and liabilities of the Test & Services consolidated perimeter were classified as a disposal groupheld for sale according to IFRS 5. The disposal was performed via an acquisition company Test &Mesures Groupe SAS in which Airbus Defence & Space will retain temporarily 33.5%. The total
consideration received amounted to 35 M € (thereof 28 M € consideration received in cash and7 M € for the shares in Test & Mesures Groupe SAS). The amount of net assets sold was 31 M €.
On 25 July 2014, Airbus Group N.V., Leiden (Netherlands) acquired 100% shares in Salzburg
München Bank AG from Raiffeisenverband Salzburg. The Salzburg München Bank AG is a fullylicensed bank based in Munich (Germany) with around 300 M € of total assets serving small andmedium enterprises and private clients. The acquisition of Salzburg München Bank aims toprovide additional financing options for the Group’s businesses.
On 28 July 2014, Airbus Operations S.L.U., Getafe (Spain), acquired 58.49% shares in Alestis
Aerospace S.L., La Rinconada (Spain), from Hiscan Patrimonio S.A.U., Pamplona (Spain),
Caixabank S.A., Barcelona (Spain), Banca Mare Nostrum S.A., Madrid (Spain) and Grupo
Empresarial Alcor S.L., Vitoria (Spain), for a total consideration of 22 M €. This provides Airbus
Group with a majority shareholding of in total 60.16% in Alestis Aerospace S.L. Airbus’ investment
is intended to secure the supply chain for civil and military programs. For the year 2013 Alestis
Aerospace S.L. reported revenues of 146 M €.

13

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

4. Segment information
In order to improve competitiveness and better adapt to shrinking traditional markets, the Group’s
defence and space businesses are combined within one Division from 1 January 2014 onwards.
Improving access to international customers, creating synergies in the Group’s operations andproduct portfolio and better focus the Group’s research and development activities are among thegoals of this reorganization. Having conducted a strategy review, the Group decided pooling theirdefence and space businesses into one Division. This structural change shall provide optimized
market access, cost and market synergies and improved competitiveness overall. The Group
operates in three reportable segments which reflect the internal organizational and management
structure according to the nature of the products and services provided.
 Airbus (before 1 January 2014: Airbus Commercial) — Development, manufacturing, marketingand sale of commercial jet aircraft of more than 100 seats; aircraft conversion and related
services; development, manufacturing, marketing and sale of regional turboprop aircraft andaircraft components.
 Airbus Helicopters (before 1 January 2014: Eurocopter) — Development, manufacturing,marketing and sale of civil and military helicopters; provision of helicopter related services.
 Airbus Defence and Space — Military combat aircraft and training aircraft; provision of defence
electronics and of global security market solutions such as integrated systems for global bordersecurity and secure communications solutions and logistics; training, testing, engineering andother related services; development, manufacturing, marketing and sale of missiles systems;
development, manufacturing, marketing and sale of satellites, orbital infrastructures andlaunchers; provision of space related services; development, manufacturing, marketing and saleof military transport aircraft and special mission aircraft and related services.

The former reportable segments Cassidian, Astrium and Airbus Military form the new reportablesegment Airbus Defence and Space.
The following table presents information with respect to the Group’s business segments. As a rule,inter-segment transfers are carried out on an arm’s length basis. The Group’s activities managed in
the US, the holding function of the Group’s Headquarters and other activities not allocable to thereportable segments, combined together with consolidation effects, are disclosed in the column“Others/ HQ / Conso.”. The corresponding prior period information has been restated.

14

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

in M €

AirbusAirbusDefence
Airbus Helicopters and Space

Total Others/ HQ/
segments
Conso.

Consolidated

Nine-month period ended 30 September 2014
Total revenues

28,820

4,260

8,197

41,277349

41,626

Internal revenues

-587

-337

-191

-1,115-14-1,129

Revenues

28,233

3,923

8,006

40,162335

40,497

Research anddevelopment expenses-1,869-230-249-2,348-28-2,376

Profit before financeresult and income taxes

1,754

241

356

2,351

198

2,549

EBIT pre-goodwill imp.
and exceptionals (seedefinition below)

1,773

241

370

2,384

199

2,583

Finance result-612

Income taxes-529

Profit for the period

1,408

Nine-month period ended 30 September 2013 **)Total revenues *)27,328

4,132

8,382

39,842

348

40,190Internal revenues *)

-628

-374

-222

-1,224-19-1,243

26,700

3,758

8,160

38,618329

38,947-1,681-218-238-2,137-15-2,152

1,503

216

348

2,067

33

2,100

1,523

217

356

2,096

35

2,131

Revenues *)Research anddevelopment expenses*)
Profit before financeresult and income taxes*)
EBIT pre-goodwill imp.
and exceptionals (seedefinition below) *)Finance result *)-435

Income taxes *)-460

Profit for the period *)

1,205

*)
**)

Previous year’s figures are adjusted due to the application of IFRS 11.
Previous year’s figures are adjusted due to the new segment structure.

15

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

5. EBIT pre-goodwill impairment and exceptionals
Airbus Group uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its
economic performance. The term “exceptionals” refers to such items as depreciation expenses offair value adjustments relating to the former EADS merger, the Airbus combination and theformation of MBDA, as well as impairment charges thereon. It also comprises disposal impacts
related to goodwill and fair value adjustments from these transactions. EBIT pre-goodwill
impairment and exceptionals is treated by management as a key indicator to measure thesegments’ economic performance.
The reconciliation from profit before finance result and income taxes to EBIT pre-goodwill
impairment and exceptionals is set forth in the following table (in M €):1 January 30 September
2014

1 January 30 September
2013

2,549

2,100

Impairment and disposal of goodwill

5

0

Exceptional depreciation (fixed assets in cost of sales)

29

31

2,583

2,131

in M €
Profit before finance result and income taxes *)Goodwill and exceptionals:

EBIT pre-goodwill impairment and exceptionals*)*)

Previous year’s figures are adjusted due to the application of IFRS 11.

6. Significant income statement items
Revenues of 40,497 M € (first nine months 2013 adjusted: 38,947 M €) increased by +1,550 M €,mainly at Airbus (+1,492 M €). The revenue growth in Airbus results from a more favourable
delivery mix.
The Gross margin increased by +456 M € to 6,398 M € compared to 5,942 M € (adjusted) in thefirst nine months of 2013 with contributions from each division. Gross margin rate increased from
15.3% to 15.8%. In Airbus, the increase was driven by operational improvement including A380
progress towards breakeven and the favourable evolution of maturing hedges. This was partially
offset by A350 XWB support costs and higher R&D.
The A350 XWB Entry into service is scheduled for the end of 2014. Airbus continues to makesignificant progress on A350 XWB program. Type certificate from EASA has been obtained on 30
September 2014. Airbus is in the most critical phase of the A350 XWB program. The industrial
ramp up preparation is underway and associated risks will continue to be closely monitored in linewith the schedule, aircraft performance and overall cost envelope, as per customer’s commitment.
Research and development expenses increased by -224 M € to -2,376 M € (first nine months
2013 adjusted: -2,152 M €) mainly due to an increase in A350 XWB.
Other income increased by +106 M € to 235 M € (first nine months 2013 adjusted: 129 M €)mainly as a result of the sale of the Paris Headquarters building.

16

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

Share of profit from associates under the equity method and other income frominvestments of 304 M € (first nine months 2013 adjusted: 319 M €) mainly consists of the share of
the result of Dassault Aviation of 182 M € (first nine months 2013: 174 M €), of GIE ATR, of
Airtanker and of MBDA. The Dassault Aviation at equity result in the first nine months 2014
includes a positive catch-up on 2013 results.
Finance result amounted to -612 M € (first nine months 2013 adjusted: -435 M €) and includes
interest result of -278 M € (first nine months 2013 adjusted:-263 M €) and other financial result of-334 M € (first nine months 2013 adjusted:-172 M €).
Other financial result mainly includes the negative impact from unwinding of discounted provisions(-156 M €, first nine months 2013:-101 M €) and the negative impact from foreign exchange
valuation of monetary items (-109 M €, first nine months 2013: -53 M €).
The income tax expense of -529 M € (first nine months 2013 adjusted: -460 M €) corresponds toan effective income tax rate of 27.3% (first nine months 2013 adjusted: 27.6%).

7. Significant items of the statement of financial positionNon-current assets
Intangible assets increased by +286 M € to 12,786 M € (prior year-end adjusted: 12,500 M €),This mainly relates to Airbus (8,695 M €), Airbus Defence and Space (3,377 M €) and Airbus
Helicopters (696 M €) and includes goodwill of 9,999 M € (prior year-end adjusted: 9,872 M €).
Included within goodwill is a +76 M € increase from the acquisition of Alestis.
The last annual impairment tests, which were performed in the fourth quarter 2013, led to an
impairment charge of 15 M €. Capitalization of development costs for the A350 XWB program
started in the second quarter 2012. In the first nine months 2014, an amount of 60 M € has been
capitalized resulting in a total amount of 788 M €.
Property, plant and equipment increased by +513 M € to 16,167 M € (prior year-end adjusted:
15,654 M €) and includes leased assets of 319 M € (prior year-end adjusted: 351 M €). The
increase was mainly driven by the A350 XWB program. Property, plant and equipment also
includes “Investment property” amounting to 66 M € (prior year-end adjusted: 69 M €).
Investments in associates under the equity method of 3,853 M € (prior year-end adjusted:
3,858 M €) mainly include the equity investment in Dassault Aviation, Atlas Group, MBDA and
Airbus FAC Ltd China. The equity investment in Dassault Aviation includes an IFRS catch-up
adjustment for income and other comprehensive income relating to the prior period.
Other investments and other long-term financial assets of 1,523 M € (prior year-end adjusted:
1,756 M €) are related to Airbus for an amount of 491 M € (prior year-end adjusted: 702 M €),mainly concerning the non-current portion of aircraft financing activities.
Other non-current assets mainly comprise non-current derivative financial instruments and noncurrent prepaid expenses. The decrease by -1,523 M € to 2,204 M € (prior year-end adjusted:
3,727 M €) resulted from the negative variation of the non-current portion of fair values ofderivative financial instruments (-1,553 M €).
Deferred tax assets increased by + 1,004 M € to 4,737 M € (prior year-end adjusted: 3,733 M €)mainly as a result of variations in the fair values of derivative financial instruments.

17

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

The fair values of derivative financial instruments are included in other non-current assets(440 M €, prior year-end: 1,993 M €), in other current assets (234 M €, prior year-end adjusted:
716 M €), in other non-current liabilities (1,736 M €, prior year-end: 671 M €) and in other current
liabilities (1,544 M €, prior year-end adjusted: 302 M €) which corresponds to a total net fair valueof -2,606 M € (prior year-end: +1,736 M €). The volume of hedged US dollar-contracts remains
almost stable at 75 billion US dollar as at 30 September 2014 compared to 76 billion US dollar as
at 31 December 2013. The US dollar spot rate is 1.26 USD/€ and 1.38 USD/€ at 30 September
2014 and at 31 December 2013 respectively. The average US dollar hedge rate for the hedge
portfolio of the Group remains stable at 1.34 USD/€ as at 30 September 2014 and at 31 December
2013.
Non-current securities with a remaining maturity of more than one year increased by +763 M €to 5,061 M € (prior year-end adjusted: 4,298 M €). The movement is related to the cash
management policy of the Group.

Current assets
Inventories of 27,343 M € (prior year-end adjusted: 24,023 M €) increased by +3,320 M €. This ismainly related to Airbus (+2,142 M €), Airbus Defence and Space (+859 M €) and Airbus
Helicopters (+275 M €). The increase in Airbus is mainly driven by the increased activity on theA350 XWB program.
Trade receivables decreased by -797 M € to 5,831 M € (prior year-end adjusted: 6,628 M €),mainly in Airbus Defence and Space.
Other current assets include “Current portion of other long-term financial assets”, “Current otherfinancial assets”, “Current other assets” and “Current tax assets”. The decrease of -51 M € to
4,260 M € (prior year-end adjusted: 4,311 M €) includes the negative variation of the current
portion of fair values of derivative financial instruments (-482 M €) partly compensated byincreases in VAT receivables (+254 M €) and prepaid expenses (+141 M €).
Current securities with a remaining maturity of one year or less decreased by -383 M € to
2,202 M € (prior year-end adjusted: 2,585 M €).
Cash and cash equivalents decreased from 7,201 M € (prior year-end adjusted) to 5,156 M €(see also note 8 “Significant cash flow items”).

Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounted
to 8,549 M € (prior year-end adjusted: 10,864 M €) representing a decrease of -2,315 M €. Thisdecrease was due to a dividend distribution of -587 M € (0.75 € per share) and a reduction in othercomprehensive income of -3,272 M €, mainly derived from the mark to market revaluations of thehedge portfolio. This was partly offset by a net income of +1,399 M € and the sale of treasury
shares of +102 M €.
Non-controlling interests decreased to 4 M € (prior year-end adjusted: 42 M €). The decrease
mainly resulted from the acquisition of Alestis and the subsequent recognition of its minorities
shareholders (-38 M €).

18

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

Non-current liabilities
Non-current provisions of 9,710 M € (prior year-end adjusted: 9,604 M €) include the non-current
portion of pension provisions, which increased by +722 M € to 6,588 M € (prior year-end adjusted:
5,866 M €). Included as part of this pension provision increase + 750 M € resulted from adecrease in discount rates of 0.8% in the euro zone and of 0.3% in the GBP-currency area, whichis partially offset by payments into plan assets amounting to -349 M €.
Other provisions are also included in non-current provisions, and decreased by -616 M € to
3,122 M € (prior year-end adjusted: 3,738 M €). This decrease is mainly linked to the A350 XWB
program on which inventories are presented net of the respective portion of the contract loss
provision.
The provision for contract losses as part of other provisions also relates to Airbus Defence &Space in conjunction with the A400M. After three aircraft deliveries in the third quarter 2014 andhence four in the first nine months of 2014, the A400M program enters into a phase of progressive
enhancement of military capabilities with some delays incurred. The sequence of progressive
enhancements is under negotiation with the customers. Negative cost and risk evolution mostly
driven by military functionalities challenges, delays in aircraft acceptance and industrial ramp-up
together with associated mitigation actions are under assessment and will be finalized for the 2014
full year accounts.
Included in non-current (and current) provision are costs for the A380 program related to in service
technical issues identified and with solutions defined, which reflects the latest facts andcircumstances. Contractually, Airbus is not liable towards airlines for losses of use, revenue or
profit or for any other direct, incidentally or consequential damages. However, in view of overall
commercial relationships, contract adjustments may occur, and be considered on a case by casebasis.
Long-term financing liabilities, mainly comprising bonds and liabilities to financial institutions
increased by +1,376 M € to 5,180 M € (prior year-end adjusted: 3,804 M €). This increase ismainly due to a 1 billion € bond issued on 2 April 2014 with a 10 year-maturity. The bond will pay a
2.375% coupon.
Other non-current liabilities, comprising “Non-current other financial liabilities”, “Non-current
other liabilities” and “Non-current deferred income”, increased in total by +2,596 M € to 20,751 M €(prior year-end adjusted: 18,155 M €). Advance payments received increased by +1,375 M € andthe negative fair values of financial instruments by 1,065 M €.

Current liabilities
Current provisions decreased by -544 M € to 4,678 M € (prior year-end adjusted: 5,222 M €) andcomprise the current portion of pensions provisions (331 M €) and of other provisions (4,347 M €).
The decrease is mainly linked to the A400M program on which inventories are presented net of therespective portion of the contract loss provision.
Short-term financing liabilities increased by +67 M € to 1,893 M € (prior year-end adjusted:
1,826 M €), mainly due to higher liabilities from the commercial paper program.
Trade liabilities decreased by -41 M € to 9,627 M € (prior year-end adjusted: 9,668 M €). Thisdecrease occurred mainly at Airbus.

19

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

Other current liabilities include “Current other financial liabilities”, “Current other liabilities” and“Current deferred income”. These liabilities decreased by -66 M € to 28,953 M € (prior year-end
adjusted: 29,019 M €), and are mainly due to the decrease in advance payments received(-1,673 M €) offset by higher liabilities from refundable government advances (+199 M €), higher
deferred income (+ 86 M €) and an increase in the negative fair values of derivative financial
instruments (+1,242 M €).

8. Significant cash flow items
Cash (used for) operating activities has improved by +1,690 M € to -1,236 M € (first ninemonths 2013 adjusted: -2,926 M €).
Gross cash flow from operations (before changes in other operating assets and liabilities) of+2,932 M € increased compared to the prior period (first nine months 2013 adjusted: +2,505 M €).
Changes in other operating assets and liabilities amounts to -4,168 M € (first nine months 2013adjusted: -5.431 M €) and is mainly due to an increase in inventories in all divisions. This increasereflects investment in programs to support both production and development, particularly for A350
XWB and A400M.
Cash (used for) investing activities amounts to -1,489 M € (first nine months 2013 adjusted:-1,080 M €). This mainly comprises purchases of intangible assets and property, plant andequipment of -1,639 M € (first nine months 2013 adjusted: -2,059 M €) reflecting investments to
support the ramp-up phase mainly for A350 XWB.
Proceeds from disposal of intangible assets and property, plant and equipment amounts to+168 M€ (first nine months 2013 adjusted: +4 M €) and results mainly from the sale of the Paris
Headquarters building.
Proceeds from disposal of subsidiaries amounts to -34 M € (first nine months 2013: 0 M €) andcorresponds to the sales of Test & Services and ND Satcom GmbH.
Acquisitions of subsidiaries and joint ventures amounts to -47 M € (first nine months 2013adjusted: -15 M €) and mainly reflects acquisitions of Alestis and Airbus Group Bank.
Dividends paid by companies valued at equity amounts to +136 M € (first nine months 2013adjusted: 100 M €) and comprises mainly MBDA (+57 M €), Dassault (+42 M €) and Atlas Group(+23 M €).
Cash provided by financing activities increased by +45 M € to +461 M € (first nine months 2013adjusted: + 416 M €). This increase comprises changes in long-term and short-term financing
liabilities of + 900M € (first nine months 2013 adjusted: 2,578 M €) and changes in treasury sharesof + 102 M € (first nine months 2013: 1,913 M €). The increase in long-term and short-term
financing liabilities is mainly due to a 1 billion € bond issued on 2 April 2014 with a 10 yearmaturity (please refer to Note 7 “Significant items of the statement of financial position”).This
increase is partly offset by the cash distribution to shareholders of -587 M € (first nine months
2013: -467 M €).

20

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

9. 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 indetail in note 34 b) to the 2013 Consolidated Financial Statements. For the first nine months 2014,
Airbus Group has applied the same methodologies for the fair value measurement of financial
instruments. Considering the variability of their value-determining factors, the use of carrying
amounts for fair values as a proxy and the volume of financial instruments, the fair values
presented herein may not be indicative of the amounts that the Group could realise in a current
market environment. The following items are the main exceptions to this general rule:Financial Instruments
Total
Book Value
Fair Value

30 September 2014
in M €
Other investments and long-term financial assets- Equity instruments
Long-term and short-term financing liabilities

398

398*)

7,073

7,337

Financial Instruments
Total
Book Value
Fair Value

31 December 2013**)in M €
Other investments and long-term financial assets- Equity instruments
Long-term and short-term financing liabilities
*)

359

359*)

5,630

5,760

For certain unlisted equity investments price quotes are not available and fair values may not be reliably measurable

using valuation techniques because the range of reasonable fair value estimates is significant and the probabilities of thevarious estimates within the range cannot be reasonably assessed. These equity investments are accounted for at cost,
and their fair values as reported in the table above, equal their carrying amounts.
**)

Previous year’s figures are adjusted due to the application of IFRS 10 and 11.

The fair value hierarchy consists of the following levels:
Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities;
Level 2: inputs other than quoted prices that are observable for the asset or liability, either directly(i.e. as prices) or indirectly (i.e. derived from prices); andLevel 3: inputs for the asset or liability that are not based on observable market data.

21

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

The following table allocates the financial assets and liabilities measured at fair value to the threelevels of the fair value hierarchy as of 30 September 2014:

30 September 2014
in M €

Level 1

Level 2

Level 3

Total

240

0

0

240

0

664

10

674

Securities

7,103

160

0

7,263

Cash equivalents

2,464

1,157

0

3,621

Total

9,807

1,981

10

11,798Derivative instruments

0-3,2800-3,280

Other liabilities

0

0

-140

-140

0

-3,280-140-3,420Level 1

Level 2

Level 3

Total

252

0

0

252

0

2,675

34

2,709

Securities

6,876

7

0

6,883

Cash equivalents

3,777

1,286

0

5,063

Total

10,905

3,968

34

14,907

Derivative instruments

0

-973

0

-973

Other liabilities

0

0

-180

-180

0

-973

-180

-1,153Financial assets measured at fair value
Other investments and long-term financial
assetsEquity Instruments
Other non-current and current assets
Derivative Instruments

Financial liabilities measured at fair value

Total

31 December 2013 *)in M €
Financial assets measured at fair value
Other investments and long-term financial
assetsEquity Instruments
Other non-current and current assets
Derivative Instruments

Financial liabilities measured at fair value

Total
*)

Previous year’s figures are adjusted due to the application of IFRS 10 and 11

22

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

The development of financial instruments of Level 3 is as follows:

Financial assets and liabilities
on Level 3

Total gains orlosses in
Other
Balance atcompreBalance at
1 January Profit or hensive
Settle- Reclassi- 30 September
2014
loss income Issues ments
fication
2014

Financial assets –Derivative instruments
Commodity swap
agreements
Other derivative instruments
Total
Financial liabilities –Other liabilities

26

6

0

0

-22

0

8

0

0

34

6

0

10

0

-8

0

0

0

-30

0

10

Written put options on
non-controlling interests

-129

-1

0

0

0

0

-130

Earn-out agreements

-51

25

0

0

16

0

-10

0

0

0

0

0

0

0

-180

24

0

0

16

0

-140

Total gains orlosses in
Other
Balance atcompre1 January Profit or hensive
Settle- Reclassi2013
loss income Issues ments
fication

Balance at
30 December
2013

Other
Total

Financial assets and liabilities
on Level 3
Financial assets –Derivative instruments
Commodity swap
agreements
Other derivative instruments

41

35

0

0

-50

0

26

8

-1

1

0

0

0

8

Total
Financial liabilities –Other liabilities
Written put options on
non-controlling interests 1)

49

34

1

0

-50

0

34

0

0

1

-101

3

-32

-129

Earn-out agreements 2)

0

1

0

0

0

-52

-51

Other

-5

0

0

0

5

0

0

-5

1

1

-101

8

-84

-180

Total
1)

Reclassification of 32 M € for written put options on non-controlling interest issued in 2012 from financial liabilities
recognised at amortised cost during 2013.

2)

52 M € of earn-outs for entities acquired in 2012 have been recorded within Other Provisions of 2012 Consolidated
Financial Statements and have been reclassified to Level 3 financial liabilities at fair value through profit or loss.

23

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

The financial assets measured at fair value that are classified as Level 3 mainly consist of shortterm commodity contracts whose notional amounts vary with the actual volumes of certain
commodity purchases made by the Group in specific months.
A deviation of 10% of actual monthly volumes purchased from expected monthly volumes
purchased would increase or decrease (depending on whether actual volumes are 10% more or
10% less than expected volumes) the total Level 3 fair value of these short term commodity
contracts by 1 M € (prior year-end: 3 M €).
The financial liabilities measured at fair value that are classified as Level 3 consist of several
written put options on non-controlling interest (“NCI puts”) of Airbus Group subsidiaries. The fairvalues of these NCI puts vary, among others with the weighted average cost of capital (”WACC”)
and the growth rate used to determine the terminal value. An increase (decrease) of the discountrates by 50 basis points results in a decrease (increase) of the NCI put values by 5 M € (6 M €).
An increase (decrease) in the growth rates by 50 basis point increases (decreases) the NCI put
values by 5 M € (4 M €) respectively. (Changes correspond to those disclosed for prior year-end).
Another element of financial liabilities measured at fair value classified as Level 3 are earn-out
payments that have been agreed with former shareholders of entities acquired by the Group in
business combinations. Fair Value measurement is based on the expectation regarding theachievement of defined target figures by the acquired entity or its ability to close identified
customer contracts. The release of 25 M € concerns the subsequent adjustment of the earn-out
agreement related to the purchase of Cassidian Airborne Solutions GmbH, Bremen (Germany).

10. Number of shares
The total number of shares issued is 784,799,440 and 783,157,635 as of 30 September 2014 and
31 December 2013 respectively. The increase is mainly caused by the issuance of new shares.
The Group’s shares are exclusively ordinary shares with a par value of 1.00 €.
During the first nine months 2014, the number of treasury stock held by Airbus Group decreased
from 2,835,121 as of 31 December 2013 to 753,944 as of 30 September 2014. While most ofthese shares were sold back to the market, 56,993 shares were cancelled (in the first nine months
2013: 53,197,232 shares).
In 2014, the Group issued 1,698,798 new shares due to the exercise of stock options (in the firstnine months 2013: 8,111,822 new shares).

24

14.11.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

11. Earnings per share
Basic earnings per share are calculated by dividing profit for the period attributable to equity
owners of the parent (Net income) by the weighted average number of issued ordinary shares
during the period, excluding ordinary shares purchased by the Group and held as treasury shares:

1 January 30 September 2014

1 January 30 September 2013

Net income attributable to equity owners of the parent *)1,399 M €1,203 M €Weighted average number of ordinary shares outstanding

782 546 682

796 762 889

1,79

1,51

Basic earnings per share*)*)

Previous year’s figures are adjusted due to the application of IFRS 11.

For calculation of the diluted earnings per share, the weighted average number of ordinary
shares is adjusted to assume conversion of all potential ordinary shares. The Group’s categories
of dilutive potential ordinary shares are stock options and share-settled performance units for
Executive Committee members relating to long-term incentive plans for 2009 to 2013. Since in thefirst nine months 2014 the average price of Airbus Group shares exceeded the exercise price ofththth
the 6 , 7 and 8 stock option plan as well as the share-settled performance units (in the first nine
th
th
th
th
months of 2013: the 5 , 6 , 7 and 8 stock option plan), 1,350,682 potential shares (in the firstnine months 2013: 1,428,686 shares) were considered in the calculation of diluted earnings per
share.

1 January 30 September 2014

1 January 30 September 2013

Net income attributable to equity owners of the parent *)1,399 M €1,203 M €Weighted average number of ordinary shares outstanding(diluted)

783 897 364

798 191 575

1,78

1,51

Diluted earnings per share*)*)

Previous year’s figures are adjusted due to the application of IFRS 11.

12. Related party transactions
In the first nine months of 2014 the Group considers that neither governmental nor othershareholders are meeting the definition of a related party under IAS 24.
Before 2 April 2013, the French government, Daimler AG, Lagardère group, the Spanish
government (SEPI) and its related entities were considered as related parties. Due to theCompletion (“Consummation”) of the Multiparty Agreement, on 2 April 2013, the Group no longer
considers the French government, Daimler AG, Lagardère group and the Spanish government(SEPI) as related parties. The Group has entered into various transactions with related entities thathave all been carried out in the normal course of business.

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Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

13. Number of employees
The number of employees as at 30 September 2014 is 139,248 as compared to 138,404(adjusted) as at 31 December 2013.

14. Litigation and claims
Airbus Group is involved from time to time in various legal and arbitration proceedings in theordinary course of its business, the most significant of which are described below. Other thanas described below, Airbus Group is not aware of any material governmental, legal or arbitration
proceedings (including any such proceedings which are pending or threatened), during a period
covering at least the previous twelve months which may have, or have had in the recent pastsignificant effects on Airbus Group N.V.’s or the Group’s financial position or profitability.
WTO
Although Airbus Group is not a party, Airbus Group is supporting the European Commission inlitigation 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 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, the matter is now under WTO panel review pursuant to WTO rules.
On 23 March 2012, the WTO adopted the Appellate Body’s final report in the case brought by the
EU assessing funding to Boeing from the US. On 23 September 2012, the US informed the WTO
that it had taken appropriate steps to bring its measures fully into conformity with its WTO
obligations, and to comply with the WTO’s recommendations and rulings. Because the EU did notagree, the matter is now under WTO panel review pursuant to WTO rules.
Exact timing of further steps in the WTO litigation process is subject to further rulings and tonegotiations between the US and the EU. Unless a settlement, which is currently not underdiscussion, is reached between the parties, the litigation is expected to continue for several years.
Securities Litigation
Following the dismissal of charges brought by the French Autorité des marchés financiers foralleged breaches of market regulations and insider trading rules with respect primarily to the A380
delays announced in 2006, a French investigating judge decided in November 2013 to send thecase to trial (renvoi devant le tribunal correctionnel) against 7 current and former executives thatexercised their stock options in March 2006 as well as two former shareholders. On 3 October
2014 the criminal court suspended the case on the merits and decided to request a preliminary
ruling (question prioritaire de constitutionnalité) from the French Supreme Court on theconstitutionality of the French dual prosecution system (AMF and judicial proceedings). In addition
the court decided to return the case to the prosecutor to correct inaccuracies in the charges. It is
unlikely that the case will resume before the second half of 2015.

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Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 2014

GPT
Prompted by a whistleblower’s allegations, Airbus Group conducted internal audits and retainedPricewaterhouseCoopers (“PwC”) to conduct an independent review relating to GPT Special
Project Management Ltd. (“GPT”), a subsidiary that Airbus Group acquired in 2007. The
allegations called into question a service contract entered into by GPT prior to its acquisition by
Airbus Group, relating to activities conducted by GPT in Saudi Arabia. PwC’s report was provided
by Airbus Group to the UK Serious Fraud Office (the “SFO”) in March 2012. In the period underreview and based on the work it undertook, nothing came to PwC’s attention to suggest that
improper payments were made by GPT. In August 2012, the SFO announced that it had opened aformal criminal investigation into the matter. Airbus Group is cooperating fully with thisinvestigation.
Eurofighter Austria
In March 2012, the German public prosecutor, following a request for assistance by the Austrian
public prosecutor, launched a criminal investigation into alleged bribery, tax evasion and breach oftrust by current and former employees of EADS Deutschland GmbH (renamed on 1 July 2014
Airbus Defence and Space GmbH) and Eurofighter Jagdflugzeug GmbH as well as by third parties
relating to the sale of Eurofighter aircraft to Austria in 2003. After having been informed on theinvestigation in 2012, Airbus Group retained law firm Clifford Chance to conduct a fact finding
independent review. Upon concluding its review, Clifford Chance presented its fact finding
report to Airbus Group in December 2013. Airbus Group provided the report to the publicprosecutors in Germany. Airbus Group is cooperating fully with this investigation.
Commercial disputes
In May 2013, the Group has been notified of a commercial dispute following the decision taken by
the Group to cease a partnership for sales support activities in some local markets abroad. The
Group believes it has solid grounds to legally object to the alleged breach of a commercial
agreement. However, the consequences of this dispute and the outcome of the proceedings
cannot be assessed at this stage.
In the course of another commercial dispute, the Group has received in the third quarter 2013 astatement of claim alleging liability for refunding part of the purchase price of a large contract
which the customer claims it was not obliged to pay. The Group believes that this claim whichgoes back many years ago should be dismissed in principle. As always, the outcome of a legal
proceeding is uncertain.
In July 2013, the Group became the subject of a commercial dispute following the expiry of apartnership study for winglet devices with a US supplier. The Group believes it has solid grounds
to legally object to the alleged breach of a commercial non-disclosure agreement. However, theoutcome and consequences of this dispute cannot be assessed at this stage.

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Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the nine-month period
ended 30 September 201415. Subsequent events
The A400M SOC 1 milestone remains to be achieved. SOC 1 fell due end October 2013, and thetermination right related thereto became exercisable by OCCAR/Nations on 1 November 2014
after a 12-month grace period. It has not at the date hereof been exercised. Management judgesthat it is highly unlikely that this termination right will be exercised.
Following the publication of investigations by the Romanian authorities relating to the bordersurveillance project in Romania in mid-October 2014 Airbus Group confirms that Airbus Defence
and Space GmbH has been informed that also the German prosecution office investigates withrespect to potential irregularities in relation to this project and two other projects. No legal entity of
the Airbus Group is subject of any accusations.

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