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

First half-year 2014 Financial Report2014 Semi-Annual Report of the Board of Directors …………………………… 2

Unaudited Condensed IFRS Consolidated Financial Information of
Airbus Group N.V. for the six-month period ended 30 June 2014….………… 4

Appendix: Review report of the independent auditor

1

30.07.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 20142014 Semi-Annual Report of the Board of Directors

1. Semi-Annual Report on Activities
Main Events in the first half-year of 2014
For an overview of the main events that occurred during the first half of 2014 and their impact on the
Unaudited Condensed IFRS Consolidated Financial Information of Airbus Group for the six-month
period ended 30 June 2014 (the “Semi-Annual Financial Statements”), please refer to the press
release, which will be issued on 30 July 2014, available on Airbus Group’s website
www.airbusgroup.com.
For further information and detail regarding Airbus Group’s activities, finances, financing, risk factors
and corporate governance, please refer to Airbus Group’s website www.airbusgroup.com and the
documents posted thereon.
Related Party Transactions
Please refer to the notes to the Semi-Annual Financial Statements attached hereto (see Note 12“Related party transactions”).

2. Risk Factors
Airbus Group (formerly EADS), long-term development and production lifecycle make Enterprise Risk
Management (ERM) a crucial mechanism for both mitigating the risks faced by the company andidentifying future opportunities. ERM has become a key management process across the Group,
serving to mitigate key risks and increase opportunity. By mapping the material risks, planning how to
mitigate them and how to seize related opportunities, ERM is designed to protect the achievement.
For a description of the Enterprise Risk Management system, the main risks and uncertainties pleaserefer to the:a. EADS N.V. Report of the Board of Directors 2013 (sections 4.5 and 4.6)
(http://www.airbusgroup.com/int/en/toolbox/sitesearch.html?queryStr=board+of+directors+report), andb. EADS N.V. Registration Document (section “Risk Factors”)(http://www.airbusgroup.com/int/en/toolbox/site-search.html?queryStr=registration+document).

2

30.07.2014

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

3. Semi-Annual Financial Statements
The Semi-Annual Financial Statements, including the review report by KPMG Accountants N.V., areattached hereto.

4. Statement of the Board of Directors
The Board of Directors of Airbus Group hereby declares that, to the best of its knowledge:(i) the Semi-Annual Financial Statements for the period ended 30 June 2014 give a true and fair viewof the assets, liabilities, financial position and profits or losses of Airbus Group and undertakings
included in the consolidation taken as a whole; and(ii) this Semi-Annual Board Report (which includes the press release, which will be issued on 30 July2014) gives a true and fair view of the position as per the balance sheet date, and of thedevelopment and performance during the first half of the 2014 financial year and expected courseof events of Airbus Group and undertakings included in the consolidation taken as a whole. This
Semi-Annual Board Report has paid special attention to investments and circumstances uponwhich the development of revenues and profitability is dependent, as these have been describedherein.

29 July 2014,
The Board of Directors
Denis Ranque, Chairman
Tom Enders, Chief Executive Officer
Manfred Bischoff, Director
Ralph D. Crosby, Director
Hans-Peter Keitel, Director
Hermann-Josef Lamberti, Director
Anne Lauvergeon, Director
Lakshmi N. Mittal, Director
Sir John Parker, Director
Michel Pébereau, Director
Josep Piqué i Camps, Director
Jean-Claude Trichet, Director

330.07.2014

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

Unaudited Condensed IFRS Consolidated
Financial Information of Airbus Group N.V.
for the six-month period ended 30 June 2014
Unaudited Condensed IFRS Consolidated Income Statements ………………………………....

5

Unaudited Condensed IFRS Consolidated Income Statements for the second quarterof 2014 and 2013….…………………………………………..……………………….…………………

6

Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income……….....

7

Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income for thethe second quarter 2014 and 2013……....……………………………………………………….......

8

Unaudited Condensed IFRS Consolidated Statements of Financial Position…………...........

9

Unaudited Condensed IFRS Consolidated Statements of Cash Flows…………....…………....

10

Unaudited Condensed IFRS Consolidated Statements of Changes in Equity..…………….....

11

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements
as at 30 June 2014……….……….…………….…………..……....…………..…......…....................

12

1. The Company…………………………………………………………………………………….

12

2. Accounting policies……………….………………………………………………..…..……....

12

3. Acquisitions and other M&A transactions………...….…………………………………….

16

4. Segment information………………………………..………………………………..………...

16

5. EBIT pre-goodwill impairment and exceptionals…..……..……………………………….

18

6. Significant income statement items………….…………………..………….……………....

18

7. Significant items of the statement of financial position…….……………………...........

19

8. Significant cash flow items……………………………………………………..…...………...

22

9. Financial instruments…………………………………….……………..................................

22

10. Number of shares…...…………………………………….……………..................................

26

11. Earnings per share……………………………………..……………….………...……............

26

12. Related party transactions.………………..…………………...…….………………………..

27

13. Number of employees ……………………………….……………….…………….................

27

14. Litigation and claims …..…………………………….……………….…………….................

27

15. Subsequent events …..…………………………….……………….……………....................

294

30.07.2014

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

Unaudited Condensed IFRS Consolidated Income Statements

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

1 January 30 June 2014M€
27 200-22 758
4 442

%
100
-84
16

1 January 30 June 2013 *)M€
25 670-21 657
4 013

Deviation
%
100
-84
16

M€
1 530
-1 101429-1 371-5-1 446-675-1 564-5-1 399

-5

-165

164

1

93

0

71

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

148

0

198

1

-50

1 819
79
-268
-63
-252
-426
1 141

7
0
-1
0
-1
-2
4

1 459
84
-260
-241
-417
-283
759

6
0
-1
-1
-2
-1
3

360
-5
-8
178
165
-143
382

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

1 135
6

4
0

758
1

3
0

377
5

Earnings per share
Basic
Diluted
*)

€

€

€

1.45
1.45

0.94
0.94

0.51
0.51

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

530.07.2014

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

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

Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expenses
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
Attributable to:Equity owners of the parent(Net income)Non-controlling interests
Earnings per share
Basic
Diluted*)

1 April 30 June 2014M€
14 552-12 089
2 463

%
100
-83
17

1 April 30 June 2013 *)M€
13 576-11 236
2 340

Deviation
%
100
-83
17

M€
976
-853
123

-705

-5

-782

-6

77

-837

-6

-782

-6

-55

112

1

32

0

80

77

1

72

1

5

1 110
43
-138
-50
-145
-260
705

8
0
-1
0
-1
-2
5

880
44
-134
-54
-144
-206
530

6
0
-1
0
-1
-1
4

230
-1
-4
4
-1
-54
175

696
9

5
0

531
-1

4
0

165
10

€

€

€

0.89
0.89

0.66
0.66

0.23
0.23

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

630.07.2014

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

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

1 January 30 June 2013

1 141

759

-450

-338

3

-6

131

96

-14

44

-324

-567

-30

-53

-27

7

91

186

Other comprehensive income, net of tax *)

-620

-631

Total comprehensive income of the period *)

521

128

513
8
521

134
-6
128

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 forusing the equity method *)Tax on items that will be reclassified to profit or loss*)

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.

7

30.07.2014

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

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Income for the second quarter 2014 and 2013
1 April 30 June 2014

1 April 30 June 2013

705

530

-457

-338

-2

2

133

96

22

-70

-362

1 279

34

-42

-14

-20

99

-369

Other comprehensive income, net of tax *)

-547

538

Total comprehensive income of the period *)

158

1 068

147
11
158

1 073
-5
1 068

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 forusing the equity method *)Tax on items that will be reclassified to profit or loss*)

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.

830.07.2014

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

Unaudited Condensed IFRS Consolidated Statements of Financial Position
31 December 2013 *)%M€%

DeviationM€%

12 550
15 8381417

12 50015 654

14
17

50
184

0
1

3 802

4

3 858

4

-56

-1

1 723

2

1 756

2

-33

-2

3 467
3 662
5 364
46 406

4
4
6
51

3 727
3 733
4 298
45 526

4
4
5
50

-260
-71
1 066
880

-7
-2
25
2

26 086
6 050
4 414
1 976
6 145
44 671

29
7
4
2
7
49

24 023
6 628
4 311
2 585
7 201
44 748

27
7
5
3
8
50

2 063
-578
103
-609
-1 056
-77

9
-9
2
-24
-15
0

134

0

0

0

134

91 211100

90 274

100

937

1

784
7 534

1
8

783
7 202

1
8

1
332

0
5

2 623

3

2 929

3

-306

-10

-12
10 92949
10 978

0
12
0
12

-50
10 86442
10 906

0
12
0
12

38
65
7
72

-76
1
17
1

9 479
4 827
1 436
18 53634 278

11
5
2
20
38

9 604
3 804
1 454
18 15533 017

11
4
2
20
37

-125
1 023
-18
381
1 261

-1
27
-1
2
4

4 664
3 297
8 781
573
28 53745 852

5
3
10
1
31
50

5 222
1 826
9 668
616
29 01946 351

6
2
11
0
32
51

-558
1 471
-887
-43
-482
-499

-11
81
-9
-7
-2
-1

103

0

0

0

103

80 23391 211

88
100

79 36890 274

88
100

865
937

30 June 2014
M€
Non-current assets
Intangible assets
Property, plant and equipment
Investments in associates under theequity method
Other investments and long-term
financial assets
Other non-current assets
Deferred tax assets
Non-current securities
Current assets
Inventories
Trade receivables
Other current assets
Current securities
Cash and cash equivalents
Assets of disposal group classified
as held for sale
Total assets
Total equity
Equity attributable to equity owners of
the parent
Capital stockReserves
Accumulated other comprehensive
incomeTreasury 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
Liabilities directly associated withassets classified as held for sale
Total liabilities
Total equity and liabilities*)

1
1

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

930.07.2014

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

Unaudited Condensed IFRS Consolidated Statements of Cash Flows
1 January 30 June 2014
M€
Profit for the period attributable to equity owners of the parent (Net income)*)1 January 30 June 2013
M€

1 135

758

6

1

954

876

370

343

Deferred tax expense

283

144

Change in income tax assets, income tax liabilities and provisions for income tax *)

40

-14

Results on disposals of non-current assets

-88

-1

-116

-163

-20

-209

Reimbursement from / contribution to plan assets

-336

-24

*)

-4 024-4 363-1 796-2 652-1 056-1 394

Profit for the period attributable to non-controlling interests
Adjustments to reconcile profit for the period to cash (used for) operating activities
Depreciation and amortization*)
Valuation adjustments*)

Results of companies accounted for by the equity method*)

Change in current and non-current provisions *)Change in other operating assets and liabilities
Cash (used for) operating activities*)

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

*)

125

24

0

-13

-25

0

-72

-205

- Proceeds from disposals of associates and otherinvestments and long-term financial assets

135

89

- Dividends paid by companies valued at equity

78

54- Acquisitions of subsidiaries and joint ventures (net of cash)- Proceeds from disposals of subsidiaries (net of cash)- Payments for investments in associates and otherinvestments and long-term financial assets *)Change of securities

*)

-396

770

Cash (used for) investing activities *)-1 211-675

Change in long-term and short-term financing liabilities *)

2 404

1 978

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

29

130

Change in treasury shares109-1 828Cash provided by (used for) financing activities *)Effect of foreign exchange rate changes and other valuation adjustments on cash
and cash equivalents *)

1 954

-188

35

-25

Net decrease of cash and cash equivalents *)-1 018-3 540Cash and cash equivalents at beginning of period *)

7 201

8 171

Cash and cash equivalents at end of period *)

6 183

4 631

Thereof presented as cash and cash equivalents

6 145

4 631

38

0

Thereof presented as part of disposal groups classified as held for sale*)

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

1030.07.2014

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

Unaudited Condensed IFRS Consolidated Statements of Changes in Equity
Equityattributable to Non-controlling
equity owners ofinterests
the parent
10 40325

in M €
Balance at 1 January 2013
Retrospective adjustment*)

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

Other comprehensive income

*)

total
10 428

-143

-1

-144

10 26024

10 284

758

1

759

-624

-7

-631

Total comprehensive income
Cash distribution to shareholders/ dividends to noncontrolling interests
Capital increase

134

-6

128

-467

-1

-468

157

3

160

Equity transactions (IAS 27)

-117

26

-91

Change in treasury shares-1 8280-1 8281

0

1

Balance at 30 June 2013, adjusted

8 140

46

8 186

Balance at 1 January 2014

11 01143

11 054

*)

-147

-1

-148

Balance at 1 January 2014, adjusted

10 86442

10 906

Profit for the period

1 135

6

1 141

Other comprehensive income

-622

2

-620

Total comprehensive income
Cash distribution to shareholders/ dividends to noncontrolling interests
Capital increase

513

8

521

-587

-1

-588

29

0

29

Change in treasury shares

109

0

109

1

0

1

10 92949

10 978OthersRetrospective adjustment

OthersBalance at 30 June 2014*)

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

1130.07.2014

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

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at 30 June 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 six-month period ended 30
June 2014 were authorized for issue by the Airbus Group Board of Directors on 29 July 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 June2014 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 IFRS Interpretations
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 six 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 six months 2014:
The following new or amended Standards were applied for the first time in the first six 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.
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.

1230.07.2014

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

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.
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:

13

30.07.2014

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

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

IFRS 10 and 11

Intangible assets

13 653-1 15312 500Property, plant & equipment

15 925-271

15 654

Investment in associates

2 902

956

3 858

Other non-current assets

13 733-219

13 51446 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

47 098-2 35044 748

Total assets

93 311-3 03790 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 46148 581-2 23046 35193 311-3 03790 274in M €As restatedNon-current assets

Current assets

Non-current liabilities

Current liabilities

Total equity and liabilities

14

30.07.2014

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

Condensed consolidated income statement for the first six months ended 30 June 2013
In M €As previously
reported

IFRS 10 and 11

Revenues

26 332-662

25 670

Cost of sales-22 169512-21 657

Gross Margin

4 163

-150

4 013

Selling, administrative & other expenses
Research and development expenses-1 523-1 41477
15-1 446-1 399Other income

84

9

93

Share of profit from associates and otherincome from investments

154

44

198

Profit before finance result and income
taxes

1 464

-5

1 459

Interest result

-172

-4

-176

Other financial result

-235

-6

-241

Finance result

-407

-10

-417

Income taxes

-297

14

-283

Profit for the period

760

-1

759

As restated

Condensed consolidated statement of cash flow as of 30 June 2013
As previously
reported

IFRS 10 and 11

Cash (used for) operating activities-2 67018-2 652

Cash (used for) investing activities

-739

64

-675

Cash (used for) financing activities

-164

-24

-188

OthersNet decrease of cash and cash
equivalents

-35

10

-25

-3 60868-3 540in M €As restated

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 December 31, 2013.
Amendments to IAS 32 “Financial Instruments: Presentation” clarify the IASB’s requirements foroffsetting financial instruments.
Amendments to IAS 39 “Novation of Derivatives and Continuation of Hedge Accounting” provide
an exception to the requirement for the discontinuation of hedge accounting in IAS 39 and IFRS 9
in circumstances when a hedging instrument is required to be novated to a central counterparty asa result of laws or regulations.

15

30.07.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 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 1 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(Luxembourg), leading to a negative consideration of 9 M €.
Other acquisitions and disposals are considered to have no material impact on the Group’s
consolidated financial statements.

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 & 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 & 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.

16

30.07.2014

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

in M €

AirbusAirbusHelicopters

AirbusDefence &
Space

Total
segments

Others/ HQ/
Conso.

Consolidated

Six-month period ended 30 June 2014
Total revenues

19 429

2 801

5 516

27 746232

27 978Internal revenues

-405

-234

-130

-769

-9

-778

19 024

2 567

5 386

26 977223

27 200-1 225-164-163-1 552-12-1 564

1 345

150

217

1 712

107

1 819

1 357

150

223

1 730

109

1 839

Revenues
Research anddevelopment
expensesProfit before financeresult and income
taxes
EBIT pre-goodwill
imp. and exceptionals(see definition below)
Finance result-252

Income taxes-426

Profit for the period

1 141

Six-month period ended 30 June 2013
Total revenues *)18 102

2 584

5 564

26 250241

26 491

Internal revenues *)

-413

-245

-149

-807

-14

-821

Revenues *)17 689

2 339

5 415

25 443227

25 670Research anddevelopment
expenses *)-1 095-143-158-1 396-3-1 399Profit before financeresult and income
taxes *)

1 082

127

210

1 419

40

1 459

EBIT pre-goodwill
imp. and exceptionals(see definition below)
*)

1 095

128

216

1 439

39

1 478

Finance result *)-417

Income taxes *)-283

Profit for the period *)Previous year’s figures are adjusted due to the application of IFRS 11.

759

*)

17

30.07.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 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 performances.
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 June 2014

in M €
Profit before finance result and income taxes *)1 January 30 June 2013

1 819

1 459

20

19

1 839

1 478

Goodwill and exceptionals:
Exceptional depreciation (fixed assets in cost of sales)
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 27,200 M € (first half-year 2013 adjusted: 25,670 M €) increase by +1,530 M €,mainly at Airbus (+1,327 M €) and at Airbus Helicopter (+217 M €), reflecting higher deliveries,
while revenues at Airbus Defence & Space remain stable.
The Gross margin increases by +429 M € to 4,442 M € compared to 4,013 M € (adjusted) in thefirst half-year of 2013. This improvement is mainly related a) to Airbus reflecting operational
improvement, higher deliveries and a positive balance sheet revaluation and mismatch and b) to alesser extent at Airbus Helicopters. The improvement is partly compensated by higher A350
support costs at Airbus. The A350 XWB Entry into service is scheduled for the end of 2014. Airbus
continues to make significant progress on A350 XWB program. Since the first flight in June 2013
significant flight and static tests have been performed. Airbus is in the most critical phase of theA350 program. The industrial ramp up preparation is underway and associated risks will continue
to be closely monitored in line with the schedule, aircraft performance and overall cost envelope,as per customer’s commitment.
Research and development expenses increase by -165 M € to -1,564 M € (first half-year 2013adjusted: -1,399 M €) mainly reflecting higher R&D expenses on the A350 program.
Other income increases by +71 M € to 164 M € (first half-year 2013 adjusted: 93 M €) mainly due
to the sale of the Paris Headquarters building (France).
Share of profit from associates under the equity method and other income frominvestments of 148 M € (first half-year 2013 adjusted: 198 M €) mainly consists of the share of
the result of Dassault Aviation of 67 M € (first half-year 2013: 101 M €) and of MBDA of 17 M €1830.07.2014

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

(first half-year 2013 adjusted: 39 M €). The Dassault Aviation at equity result in the first half-year2014 includes a positive catch-up on 2013 results.
Finance result amounts to -252 M € (first half-year 2013 adjusted: -417 M €) comprising interest
result of -189 M € (first half-year 2013 adjusted: -176 M €). Other financial result amounts to-63 M € (first half-year 2013 adjusted: -241 M €) and mainly includes the negative impact fromunwinding of discounted provisions (-92 M €, first half-year 2013: -69 M €) partly compensated by
the positive impact from foreign exchange valuation of monetary items (+56 M €, first half-year
2013: -117 M €).
The income tax expense of -426 M € (first half-year 2013 adjusted: -283 M €) corresponds to aneffective income tax rate of 27% (first half-year 2013 adjusted: 27%).

7. Significant items of the statement of financial positionNon-current assets
Intangible assets of 12,550 M € (prior year-end adjusted: 12,500 M €) include 9,880 M € (prioryear-end adjusted: 9,872 M €) of goodwill. This mainly relates to Airbus (6,681 M €), Airbus
Defence & Space (2,881 M €) and Airbus Helicopters (303 M €). The last annual impairment tests,
which were performed in the fourth quarter, led to an impairment charge of 15 M € in ‘Others/ HQ/
Conso.’. Capitalization for development costs of the A350 XWB programme started in the second
quarter 2012. In the first half-year 2014, an amount of 60 M € has been capitalized resulting in a
total amount of 785 M €. No further A350 capitalization is expected in the second half-year 2014.
Property, plant and equipment increase by +184 M € to 15,838 M € (prior year-end adjusted:
15,654 M €), including leased assets of 337 M € (prior year-end adjusted: 351 M €). The increaseis mainly driven by the A350 programme. Property, plant and equipment also comprise“Investment property” amounting to 67 M € (prior year-end adjusted: 69 M €).
Investments in associates under the equity method of 3,802 M € (prior year-end adjusted:
3,858 M €) mainly include the equity investment in Dassault Aviation and MBDA. The equity
investment in Dassault Aviation includes an IFRS catch-up adjustment for income and othercomprehensive income relating to prior period.
Other investments and other long-term financial assets of 1,723 M € (prior year-end adjusted:
1,756 M €) are related to Airbus for an amount of 804 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 -260 M € to 3,467 M € (prior year-end adjusted:
3,727 M €) is mainly caused by the negative variation of the non-current portion of fair values ofderivative financial instruments (-341 M €).
Deferred tax assets decrease by -71 M € to 3,662 M € (prior year-end adjusted: 3,733 M €).
The fair values of derivative financial instruments are included in other non-current assets(1,652 M €, prior year-end: 1,993 M €), in other current assets (644 M €, prior year-end adjusted:
716 M €), in other non-current liabilities (499 M €, prior year-end: 671 M €) and in other current
liabilities (404 M €, prior year-end adjusted: 302 M €) which corresponds to a total net fair value of+1,393 M € (prior year-end: +1,736 M €). The volume of hedged US dollar-contracts decreases
from 76 billion US dollar as at 31 December 2013 to 71 billion US dollar as at 30 June 2014. The

19

30.07.2014

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

US dollar spot rate is 1.37 USD/€ and 1.38 USD/€ at 30 June 2014 and at 31 December 2013.
The average US dollar hedge rate for the hedge portfolio of the Group remains stable at
1.34 USD/€ as at 30 June 2014 and at 31 December 2013.
Non-current securities with a remaining maturity of more than one year increase by +1,066 M €to 5,364 M € (prior year-end adjusted: 4,298 M €). The movement is related to the cash
management policy of the Group.

Current assets
Inventories of 26,086 M € (prior year-end adjusted: 24,023 M €) increase by +2,063 M €. This ismainly driven by Airbus (+1,452 M €), Airbus Defence & Space (+328 M €) and Airbus Helicopters(+277 M €).
Trade receivables decrease by -578 M € to 6,050 M € (prior year-end adjusted: 6,628 M €),mainly caused by Airbus Defence & Space and by Airbus Helicopters.
Other current assets include “Current portion of other long-term financial assets”, “Current otherfinancial assets”, “Current other assets” and “Current tax assets”. The increase of +103 M € to
4,414 M € (prior year-end adjusted: 4,311 M €) comprises among others an increase of VAT
receivables (+180 M €) and of prepaid expenses (+133 M €), partly compensated by lower
receivables from related companies (-151 M €).
Current securities with a remaining maturity of one year or less correspond to 1,976 M € (prioryear-end adjusted: 2,585 M €) and decrease by -609 M €.
Cash and cash equivalents decrease from 7,201 M € (prior year-end adjusted) to 6,145 M € (seealso note 8 “Significant cash flow items”).

Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts
to 10,929 M € (prior year-end adjusted: 10,864 M €). The increase is mainly due to a net income of+1,135 M €, and the sale of treasury shares of +109 M €, partly compensated by changes inaccumulated other comprehensive income of -622 M €, and a dividend distribution of 0.75 € pershare for a total of -587 M €.
Non-controlling interests increase to 49 M € (prior year-end adjusted: 42 M €).

Non-current liabilities
Non-current provisions of 9,479 M € (prior year-end adjusted: 9,604 M €) include the non-current
portion of pension provisions which increases by +333 M € to 6,199 M € (prior year-end adjusted:
5,866 M €). Due to a decrease in discount rates of 0.5% in the eurozone and of 0.3% in the
GBP-currency area, pension provisions increase by +450 M €.
Moreover, other provisions are included in non-current provisions, which decrease by -458 M € to
3,280 M € (prior year-end adjusted: 3,738 M €).
The provision for contract losses as part of other provisions mainly relates to Airbus Defence &Space in conjunction with the A400M and to the A350 XWB programme in Airbus. After one
delivery in 2014, the A400M programme enters in progressive enhancement of military capability

20

30.07.2014

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

with some delays incurred. The sequence of progressive enhancements is under final negotiation
with the customers. Risks related to cost envelope and military functionalities are closely
monitored. Customer contractual remedies are considered to be remote.
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
increase by +1,023 M € to 4,827 M € (prior year-end adjusted: 3,804 M €). This increase is mainly
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”, increase in total by +381 M € to 18,536 M €(prior year-end adjusted: 18,155 M €). Advance payments received increase by +690 M € whereas
the negative fair values of financial instruments decrease by -172 M €.

Current liabilities
Current provisions decrease by -558 M € to 4,664 M € (prior year-end adjusted: 5,222 M €) andcomprise the current portions of pensions (352 M €) and of other provisions (4,312 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 increase by +1,471 M € to 3,297 M € (prior year-end adjusted:
1,826 M €), mainly due to higher liabilities in the commercial paper programme and to transactions
related to repo agreements (short-term cash collection).
Trade liabilities decrease by -887 M € to 8,781 M € (prior year-end adjusted: 9,668 M €), mainly
at Airbus and at Airbus Defence & Space.
Other current liabilities include “Current other financial liabilities”, “Current other liabilities” and“Current deferred income”. They decrease by -482 M € to 28,537 M € (prior year-end adjusted:
29,019 M €), mainly due to a decrease of advance payments received (-1,098 M €) partly
compensated by higher liabilities from refundable government advances (+186 M €), higher
deferred income (+119 M €) and an increase in the negative fair values of financial instruments(+102 M €).

Disposal group held for saleOn 11 June 2014, the management of Airbus Defence & Space and a consortium consisting of
ACE Management S.A., Paris (France) and IRDI S.A., Toulouse (France) signed a contract totransfer the Test & Services activities via an acquisition company in which Airbus Defence &Space will retain 33.5%. According to IFRS 5, the assets and liabilities of the Test & Services
consolidated perimeter are classified as a disposal group held for sale as of 30 June 2014. On
Airbus Group level the non-current and the current assets classified as held for sale amount to134 M € (prior year-end: 0 M €). The non-current and current liabilities directly associated with

21

30.07.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2014assets classified as held for sale amount to 103 M € (prior year-end: 0 M €). The othercomprehensive income which was accumulated in equity relating to assets and liabilities held forsale amounts to -2 M € (prior year-end: 0 M €).

8. Significant cash flow items
Cash (used for) operating activities decreases by +856 M € to -1,796 M € (first half-year 2013adjusted: -2,652 M €). Cash (provided by) operating activities before changes in other operating
assets and liabilities of +2,228 M € increases compared to the prior period’s level (first half-year2013 adjusted: +1,711 M €). Changes in other operating assets and liabilities amount to-4,024 M € (first half-year 2013 adjusted: -4,363 M €) mainly reflecting an increase in inventories
due to a ramp-up for programmes at all Divisions and due to lower trade liabilities, mainly at Airbus
and Airbus Defence & Space.
Cash (used for) investing activities amounts to -1,211 M € (first half-year 2013 adjusted:-675 M €). This mainly comprises purchases of intangible assets and property, plant andequipment of -1,056 M € (first half-year 2013 adjusted: -1,394 M €) (mainly in Airbus) and changes
in securities of -396 M € (first half-year 2013 adjusted: 770 M €).
Cash provided by (used for) financing activities increases by +2,142 M € to +1,954 M € (firsthalf-year 2013 adjusted: -188 M €). This mainly comprises changes in long-term and short-term
financing liabilities of +2,404 M € (first half-year 2013 adjusted: +1,978 M €) (please refer to Note 7“Significant items of the statement of financial position”), changes in treasury shares of +109 M €(first half-year 2013: -1,828 M €) and the dividend distribution of 0.75 € per share which amounts
to -587 M € (first half-year 2013: -467 M €).

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 six 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:

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

22

Financial Instruments
Total
Book Value

Fair Value
*)

365

365

8 124

8 368

30.07.2014

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

Financial Instruments
Total

**)

31 December 2013
in M €
Other investments and long-term financial
assets- Equity instruments

Book Value

Long-term and short-term financing liabilities*)

Fair Value
*)

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

30 June 2014
in M €

Level 1

Level 2

Level 3

Total

192

-

-

192

-

2 275

21

2 296

Securities

7 238

102

-

7 340

Cash equivalents

3 308

1 227

-

4 535

Total

10 7383 604

21

14 363

Derivative instruments

-

-903

-

-903

Other liabilities

-

-

-156

-156

-

-903

-156

-1 059Financial 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

23

30.07.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 201431 December 2013*)
in M €

Level 1

Level 2

Level 3

Total

252

-

-

252

-

2 675

34

2 709

Securities

6 876

7

-

6 883

Cash equivalents

3 777

1 286

-

5 063

Total

10 9053 968

34

14 907

Derivative instruments

-

-973

-

-973

Other liabilities

-

-

-180

-180

-

-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
*)

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

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

Total gains orlosses in

Financial assets andliabilities on Level 3
Financial assets –Derivative instruments
Commodity swap
agreements
Other derivative
instruments
Total
Financial liabilities –Other liabilities
Written put options on
non-controlling interests
Earn-out agreements
Total

Balance at
1 January Profit
2014 or loss

26

Other
comprehensive
Settle- ReclassiBalance at
income Issues ments fication 30 June 2014

4

-

-

-17

-

13

8
34

4

-

-

-17

-

8
21

-129
-51
-180

-1
25
24

-

-

-

-

-130
-26
-156

24

30.07.2014

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2014
Total gains orlosses in

Financial assets andliabilities on Level 3
Financial assets –Derivative instruments
Commodity swap
agreements
Other derivative
instruments
Total
Financial liabilities –Other liabilities
Written put options on
non-controlling interests
Earn-out agreements
Other
Total

Balance at
1 January Profit
2013 or loss

Other
compreBalance at
hensive
Settle- Reclassi- 31 December
income Issues ments fication
2013

41

35

-

-

-50

-

26

8
49

-1
34

1
1

-

-50

-

8
34

-5
-5

1
1

1
1

-101
-101

3
5
8

-321)
-522)
-84

-129
-51
-180

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.

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 2 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).

25

30.07.2014

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

10. Number of shares
The total number of shares issued is 784,095,890 and 783,157,635 as of 30 June 2014 and 31
December 2013. 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 half-year 2014, the number of treasury stock held by Airbus Group decreased from2,835,121 as of 31 December 2013 to 606,744 as of 30 June 2014. While most of these shareswere sold back to the market, 56,993 shares were cancelled (in the first six months 2013:
47,648,691 shares).
In 2014, the Group issued 995,248 new shares due to the exercise of stock options (in the first six
months 2013: 4,869,510 new shares).

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 to
30 June 2014
Net income attributable to equity owners of the parent*)

Weighted average number of ordinary shares outstanding
Basic earnings per share*)*)

1 January to
30 June 2013

1 135 M €758 M €

782 012 866

806 014 369

1.45 €

0.94 €

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 six months 2014 the average price of Airbus Group shares exceeded the exercise price of theththth
6 , 7 and 8 stock option plan as well as the share-settled performance units (in the first six
th
th
th
th
months of 2013: the 5 , 6 , 7 and 8 stock option plan), 1,767,867 potential shares (in the firstsix months 2013: 1,623,391 shares) were considered in the calculation of diluted earnings per
share.

1 January to
30 June 2014
Net income attributable to equity owners of the parent*)

Weighted average number of ordinary shares outstanding(diluted)
Diluted earnings per share*)

1 January to
30 June 2013

1 135 M €758 M €

783 780 733

807 637 760

1.45 €

0.94 €*) Previous year’s figures are adjusted due to the application of IFRS 11.

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

12. Related party transactions
In the first six 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.

13. Number of employees
The number of employees as at 30 June 2014 is 138,133 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.

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Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2014

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, proceedings initiated in other jurisdictions have also been terminated.
Nevertheless, following criminal complaints filed by several shareholders in 2006 (including civil
claims for damages), a French investigating judge carried out an investigation based on the samefacts. In November 2013 the investigating judge decided to send the case to trial (renvoi devant letribunal correctionnel) against 7 current and former executives that exercised their stock options inMarch 2006 as well as two former shareholders. All other parties will not stand trial. The trial isscheduled to take place before the end of 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 which28

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Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2014

goes back many years ago should be dismissed in principle. As always, the outcome of a legal
proceeding is uncertain.

15. Subsequent events
On 11 June 2014, the management of Airbus Defence & Space and a consortium consisting of
ACE Management S.A., Paris (France) and IRDI S.A., Toulouse (France) signed a contract totransfer the Test & Services activities via an acquisition company in which Airbus Defence &Space will retain 33.5%. According to IFRS 5, the assets and liabilities of the Test & Services
consolidated perimeter are classified as a disposal group held for sale as of 30 June 2014 (forfurther information see section 7 “Significant items of the statement of financial position”). The
transaction has been closed on 10 July 2014.
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 a majority share 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). Airbus’ investment is intended to secure the supply chain
for civil and military programmes. For the year 2013 Alestis Aerospace S.L. reported revenues of
146 M €.

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Unaudited Condensed IFRS Consolidated Financial Information for the six-month period
ended 30 June 2014

Appendix: Review report of the independent auditor

To: The Airbus Group N.V. shareholders:Review report
Introduction
We have reviewed the accompanying condensed consolidated financial information of Airbus Group
N.V., Amsterdam, (‘the Company’) for the six-month period ended June 30, 2014, which comprises
the condensed consolidated statement of financial position as at June 30, 2014, and the relatedcondensed consolidated statements of income, comprehensive income, changes in equity and cash
flows for the six-month period then ended and explanatory notes. Company’s management is
responsible for the preparation and presentation of this condensed consolidated financial informationin accordance with International Financial Reporting Standards as adopted by the European Union(‘IAS 34’). Our responsibility is to express a conclusion on this condensed consolidated financial
information based on our review.

Scope of Review
We conducted our review in accordance with Dutch law including standard 2410, ‘Review of Interim
Financial Information Performed by the Auditor of the Entity’. A review of interim financial
information consists of making inquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is substantially less in scopethan an audit conducted in accordance with auditing standards and consequently does not enable us toobtain assurance that we would become aware of all significant matters that might be identified in anaudit. Accordingly, we do not express an audit opinion.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that theaccompanying condensed consolidated financial information for the six-month period ended June 30,
2014 is not prepared, in all material respects, in accordance with IAS 34, ‘Interim Financial
Reporting’, as adopted by the European Union.
Amstelveen, July 29, 2014

KPMG Accountants N.V.

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