30 October 2019

Guillaume Faury|

Chief Executive Officer

Dominik Asam|

Chief Financial Officer

SAFE HARBOUR STATEMENTDISCLAIMER

This presentation includes forward-looking statements. Words such as “anticipates”, “believes”, “estimates”, “expects”, “intends”, “plans”,“projects”, “may” and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements
include statements made about strategy, ramp-up and delivery schedules, introduction of new products and services and market expectations,as well as statements regarding future performance and outlook. By their nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking statements.
These factors include but are not limited to: Changes in general economic, political or market conditions, including the cyclical nature of some of Airbus’ businesses;
 Significant disruptions in air travel (including as a result of terrorist attacks);
 Currency exchange rate fluctuations, in particular between the Euro and the U.S. dollar;
 The successful execution of internal performance plans, including cost reduction and productivity efforts;
 Product performance risks, as well as programme development and management risks; Customer, supplier and subcontractor performance or contract negotiations, including financing issues;
 Competition and consolidation in the aerospace and defence industry; Significant collective bargaining labour disputes;
 The outcome of political and legal processes, including the availability of government financing for certain programmes and the size of
defence and space procurement budgets; Research and development costs in connection with new products;
 Legal, financial and governmental risks related to international transactions; Legal and investigatory proceedings and other economic, political and technological risks and uncertainties.
As a result, Airbus’ actual results may differ materially from the plans, goals and expectations set forth in such forward-looking statements.
For a discussion of factors that could cause future results to differ from such forward-looking statements, see the 2018 Airbus SE Registration
Document dated 29 July 2019, including the Risk Factors section.
Any forward-looking statement contained in this presentation speaks as of the date of this presentation. Airbus undertakes no obligation to
publicly revise or update any forward-looking statements in light of new information, future events or otherwise.
Rounding disclaimer:
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute
figures.

Company
Highlights

Business
Highlights

Guidance
Highlights

4

9M 2019 HIGHLIGHTS
Solid commercial aircraft environment
9m financials mainly reflect A320neo ramp-up and progress on A350
Focus on ACF ramp-up and a more efficient delivery flow in 2019 andbeyond2019 Guidance updated to reflect latest delivery and FCF outlook;
EBIT Adjusted guidance maintained

5

9M 2019 COMMERCIAL POSITIONING
Consolidated Airbus Order Book

Consolidated Airbus
External Revenue

by Division

by Division

9m 2019
Airbus(in units)

Helicopters(in units)

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

127
7,133

Order Intake (net)173

Order Book

681

Order Intake (net)€ 46.2 bn
t/o defence€ 6.2 bn

6,064

AIRBUS: 303 gross orders, incl. 90 in Q3. 127 net orders in 9m. Backlog: 7,133 a/c
HELICOPTERS: 173 net orders, incl. 12 H135 in Q3
DEFENCE AND SPACE: Order intake € 6.1 bn, incl. key contract wins in Space

Airbus76%

Helicopters

7%

Defence and Space

17%

6

9M 2019 FINANCIAL PERFORMANCE
Revenues

EBIT Adjusted

in € bnin € bn / RoS (%)

9.0%
6.8%
40.4

46.2

4.1
2.7

9m 20189m 20189m 2019

EPS(1) Adjusted

9m 2019

FCF before M&A and Customer Financing

in €in € bn

3.75

(4.2)

(4.9)

2.31

9m 20189m 2019(1) 9m 2019 weighted average number of shares: 776,697,534 compared to 774,762,268 in 9m 2018
Capitalised R&D: € 78 m in 9m 2019 and € 61 m in 9m 20182018 figures include A220, consolidated into Airbus as of 1 July 2018

9m 20189m 2019

7

9M 2019 PROFITABILITYEBIT Performance

9m 2019 EBIT Reported of € 3.4 bn

in € bn

9m 2019 EBIT Adjustments resulting from:

4.13

3.43

2.74

2.68

EBIT Adjusted

EBIT Reported

9m 2018€€€€– 253 m– 221 m– 158 m

PDP mismatch / BS revaluation
Defence export ban
A380 programme cost

– 70 mOthers

9m 2019 Net Adjustments of € − 702 m

9m 2019

EPS(1) Performancein €9m 2019 Net Income of € 2,186 m
9m 2019 Net Income Adjusted of € 2,912 m

3.75
2.31

1.88

EPS Adjusted
9m 2018

2.81

EPS Reported
9m 2019(1) 9m 2019 weighted average number of shares: 776,697,534 compared to 774,762,268 in 9m 2018
Capitalised R&D: € 78 m in 9m 2019 and € 61 m in 9m 20182018 figures include A220, consolidated into Airbus as of 1 July 2018

9m 2019 tax rate on core business is 27%

8

CURRENCY HEDGE POLICY
IN $ BILLION

Forward Sales as of Sep. 2019
Collars as of Sep. 20192.5

Forward Sales and Collars as of Dec. 2018
1.7

17.4
27.1
22.2

20.7

19.4

7.4

Average hedge rates€ vs $

Forwards/Collars (2)£ vs $

2019

remaining 3 months

1.20 (1)

2020

2021

FY

1.21

FY

1.23

2022
FY

1.23

2023

and beyond

1.24( 1.23 for FY19 in Dec. 18 )( 1.23 in Dec. 18 )( 1.24 in Dec. 18 )( 1.27 in Dec. 18 )( 1.30 in Dec. 18 )

1.30

1.37

1.36

1.35

1.40

In 9m 2019, $ 37.5 bn(2) of new Forwards were added at an average rate of € 1 = $ 1.21

Mark-to-market value incl. in AOCI = € - 5.5 bn
Closing rate @ 1.09 € vs. $$ 17.4 bn(2) of hedges matured at an average rate of € 1 = $ 1.26
Hedge portfolio(2) 30 September 2019 at $ 101.0 bn (vs. $ 81.9 bn in Dec. 2018), at an average rate of $ 1.22(3)In 9m, $ 5.1 bn of hedges rolled over intra-year to align with backloaded delivery profile
In addition, $ 3.4 bn of hedges rolled over from 2019 into 2020
Approximately 60% of Airbus US$ revenues are naturally hedged by US$ procurement. Graph shows US$ Forward Sales and Collars
Hedge rates reflect EBIT impact of the US$ hedge portfolio(1) Full year 2019 hedge rate expected at an average rate of € 1 = $ 1.24 as of 30 September 2019;(2) Total hedge amount contains $/€ and $/£ designated hedges; (3) Blended Forwards and Collars rate includes Collars at least favourable rate

9

9M 2019 CASH EVOLUTION
IN € BILLION

+4.5

-1.4

-8.2

13.3

-1.2

-0.2

+0.1
-1.3

Free Cash Flow before M&A: € - 4.9 bn
t/o Customer Financing: € 0.0 bn

5.6Free Cash Flow before M&A andCustomer Financing € - 4.9 bn

Net Cash
IFRS 16
Position
Implementation
December 2018

Gross Cash
Flow fromOperations

Change in
Working Capital

IFRS 16 implemented 1 January 2019(1) Thereof Capex of € – 1.5 bn(2) M&A transactions include acquisitions and disposals of subsidiaries and businesses

Cash used forinvestingactivities before
M&A (1)

M&A(2)

Shareholder
ReturnPensions &OthersNet CashPosition
September 2019

Company
Highlights

Business
Highlights

Guidance
Highlights

11

IN € MILLION
Order Intake (net)
Order Book
DeliveriesUnits

9m 20199m 2018

Change127256-50.4%

7,133

7,383

-3.4%

Deliveries by Programme (units)
A320

74%

A350

13%

A220

6%

571

503

13.5%

A330

6%

Revenues

35,57230,478

16.7%

A380

1%

R&D Expenses

1,495

1,456

4.2%

4.8%

2.7%

3,833

2,340

10.8%

7.7%

3,405

2,238

Platforms

93%

9.6%

7.3%

Services7%

in % of Revenues

EBIT Adjusted
in % of Revenues

EBIT
in % of Revenues

Units

63.8%

External Revenue Split

52.1%

Revenues and EBIT Adjusted reflect the backloaded delivery profile
A320neo: 338 a/c delivered in 9m, ACF ramp-up remains challenging
EBIT Adjusted mainly reflects A320neo ramp-up, A350 operational performance, and FXCapitalised R&D: € 40 m in 9m 2019 and € 36 m in 9m 20182018 figures include A220, consolidated into Airbus as of 1 July 2018

12

HELICOPTERS
IN € MILLION

9m 20199m 2018

Change173

230-24.8%

681

704

-3.3%

209

218

-4.1%

3,712

3,755

-1.1%

R&D Expenses

216

214

in % of Revenues

5.8%

5.7%

0.9%

EBIT Adjusted

205

202

in % of Revenues

5.5%

5.4%

EBIT

203

179

in % of Revenues

5.5%

4.8%

Order Intake (net)
Order Book
Deliveries
Revenues

Units

Units

Civil

51%

Defence49%

Platforms

51%

Services

49%

1.5%
13.4%

Stable Revenues supported by growth in services, reduced by programme phasing
EBIT Adjusted reflects increased contribution from services, reduced by lessfavourable delivery mix

Capitalised R&D: € 14 m in 9m 2019 and € 16 m in 9m 2018

External Revenue Split

13

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

9m 20199m 2018

Change

6,064

4,988

21.6%

7,706

7,051

9.3%

R&D Expenses

216

219

in % of Revenues

2.8%

3.1%

-1.4%

EBIT Adjusted

355

409

in % of Revenues

4.6%

5.8%

EBIT

83

479

in % of Revenues

1.1%

6.8%

Revenues

External Revenue Split
70%

Services

30%

Military Aircraft

55%

Space Systems

26%

CIS(1) & Others

19%-13.2%-82.7%

Revenue increase mainly driven by Military Aircraft
EBIT Adjusted mainly reflects efforts to support on-going and future campaigns
A400M: 10 a/c delivered in 9m 2019; key milestones towards full capability achieved
German defence export ban: EBIT impact of € – 221 m booked in 9m 2019, of which € – 13 m in Q3
2018 EBIT included Capital Gain from disposal of Airbus DS Communications, Inc. business(1) Communications, Intelligence & Security
Capitalised R&D: € 24 m in 9m 2019 and € 9 m in 9m 2018

Platforms

Company
Highlights

Business
Highlights

Guidance
Highlights

152019 GUIDANCEAs the basis for its 2019 guidance, Airbus expects the world economy and air traffic to grow in linewith prevailing independent forecasts, which assume no major disruptions
Airbus 2019 Earnings and FCF guidance is before M&A
Airbus now targets around 860 commercial aircraft deliveries in 2019, which reflects the updateddelivery scheduleOn that basis:
Airbus maintains its expected increase in EBIT Adjusted of approximately +15%
compared to 2018
Airbus now expects FCF before M&A and Customer Financing of approximately € 3 bn

16

KEY PRIORITIESFocus on deliveries in 2019 and beyond
Ramp-up A320neo, including ACF
Improve A350 margins
Improve programme execution across businesses
Services, Digital and Innovation

Deliver Earnings and FCF growth potential

Appendix

18

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

1.34
1.32
1.30

Average
Hedge Rates

1.32
1.31

1.28

1.27

1.26
1.24
1.22

1.23

1.20

1.21 (1)
1.18

1.18

1.20

1.20

1.16
1.14

Q1

Q2

2019 E(1) Q3 actual

Q3

Q4

FY 2018

FY 2018

1.24

FY 2019E

1.24

19

9M 2019 DETAILED INCOME STATEMENT AND ADJUSTMENTS
IN € MILLION

thereof Adjustments
Impact on EBIT
9m 2019
Reported

3,431

EBIT

Operational

FX

AirbusHelicopters

Defence andSpace(1)

Airbus + Defence
and Space(2)

(225)

(2)

(222)

(253)

Financial
Result9m 2019
Adjusted

4,133

in % of Revenues

7.4%

Interest income

143

143

Interest expenses

(266)

(266)

Other Financial Result

(110)

(72)

(38)

Financial Result

(233)

(72)

(161)

Income before taxes

3,198

(72)

3,972

Non-controlling interest

12

Net Income reported
Number of shares

EPS reported (in €)

(225)

(2)

(222)

(253)

9.0%

12

2,186

2,912

776,697,534

776,697,534

2.81

3.75

Net Income Adjusted excludes the following items:
Adjustments impacting the EBIT line (as reported in the EBIT Adjusted)
The Other Financial Result, except for the unwinding of discount on provisions
The tax effect on Adjusted Income before taxes is calculated at 27%. The effective tax rate on Income before taxes is 32%(1) Thereof € - 22 m A400M provision update(2) Thereof € - 203 m Airbus, € - 50 m ADS

20

9M 2018 DETAILED INCOME STATEMENT AND ADJUSTMENTS
IN € MILLION

thereof Adjustments
Impact on EBIT
9m 2018
Reported

Operational

FX

AirbusHelicopters

Defence andSpace(1)

Airbus + Defence
and Space(2)

(109)

(23)

51

26

Financial
Result9m 2018
Adjusted

EBIT

2,683

in % of Revenues

6.6%Interest income

144

144

Interest expenses

(367)

(367)

Other Financial Result

(190)

(154)

(36)

Financial Result

(413)

(154)

(259)

Income before taxes

2,270

(154)

2,479

Non-controlling interest

7

Net Income reported
Number of shares

EPS reported (in €)

(109)

(23)

51

26

2,738
6.8%

7

1,453

1,792

774,762,268

774,762,268

1.88

2.31

Net Income Adjusted excludes the following items:
Adjustments impacting the EBIT line (as reported in the EBIT Adjusted)
The Other Financial Result, except for the unwinding of discount on provisions
The tax effect on Adjusted Income before taxes is calculated at 28%. The effective tax rate on Income before taxes is 36%
2018 figures include A220, consolidated into Airbus as of 1 July 2018
(1) Thereof € - 105 m A400M provision update mainly for escalation, € + 156 m net capital gains from disposals(2) Thereof € + 7 m Airbus, € + 19 m ADS

21

Q3 2019 KEY FIGURES
Q3 2019

Q3 2018

Revenues

15,302

15,451

EBIT Adjusted

1,604

1,576

EBIT

1,338

1,563

Net Income

989

957

FCF before M&A

(904)

(273)

FCF before M&A and Customer Financing

(956)

(201)

IN € MILLIONIN € MILLION

Q3 2019

Q3 2018

Revenues

Q3 2019

Q3 2018

EBIT Adjusted

Q3 2019

Q3 2018

EBIT

Airbus11,52911,932

1,495

1,473

1,254

1,465

Helicopters

1,341

1,367

80

67

79

65

Defence and Space

2,691

2,399

122

100

98

97

Transversal & Elim.

(259)

(247)

(93)

(64)

(93)

(64)

Consolidated Airbus

15,302

15,451

1,604

1,576

1,338

1,563

22

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

Credit Facility:

Credit Facility (RSCF)

 Maturity 2021, undrawn
 Fully committed by 40 banks
 No financial covenants, no MAC clause

Financing Liabilities:€ 12.2 bn
Financing Liabilitiesof which long-term: € 8.8 bn
 Includes € 3.0 bn EMTN,€ 0.5 bn Convertible Bond,€ 1.1 bn exchangeable bondand $ 2.5 bn USD 144A/RegS€ 17.8 bn
Total Gross CashInvested in highly rated securities

Credit Ratings:€ 5.6 bn
Net Cash

Short-term rating: S & P:
A-1+
 Moody’s:
P-1
Long-term rating: S & P:
A+ stable
 Moody’s:
A2 stable

23

DETAILED FREE CASH FLOWIN € MILLION
9m 20199m 2018

Net Cash position at the beginning of the period

13,281

13,390First time impact of IFRS 16(1,352)-Gross Cash Flow from Operations (1)

4,538

2,517

(8,244)(5,687)(1,421)(758)(1,457)(1,378)(5,127)(3,928)

(225)

414

Free Cash Flow before M&A(4,902)(4,342)of which Customer Financing

35

(173)

(4,937)(4,169)133

112

Change in treasury shares / share buyback

4

(52)

Change in liability for puttable instruments

243-

Contribution to plan assets of pension schemes(113)(1,152)(1,280)(1,161)

(213)

(21)

5,576

7,188

Change in working capital(2)

Cash used for investing activities(3)of which Industrial Capex (additions)(4)Free Cash Flow (5) (6)of which M&AFree Cash Flow before M&A and customer financing
Change in capital and non-controlling interests

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

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

24

NET CASH POSITIONIN € MILLION
Sep. 2019

Dec. 2018

Gross Cash

17,77522,207

Financing Debts(12,199)(8,926)Long-term Financing Debts(8,783)(7,463)

Short-term Financing Debts(3,416)(1,463)

5,576

13,281

27

28

5,599

13,309

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

25

CUSTOMER FINANCING EXPOSURE
IN € MILLION

Sep. 2019

Dec. 2018

Sep. 2019

AirbusDec. 2018

Helicopters

Closing rate € 1 =$ 1.09$ 1.15$ 1.09$ 1.15

Total Gross Exposure

808

802

66

109

of which off-balance sheet

105

28

10

10

Estimated value of collateral

(616)

(562)

(46)

(35)

Net Exposure

192

240

20

74

Provision and asset impairment

(192)

(240)

(20)

(74)

0

0

0

0

Net Exposure after provision

26

AIRBUS CUSTOMER FINANCING
AdditionsIN € BILLION

0.8

0.6

(1.1)

(0.2)
(0.1)

0.5

0.6

0.9

0.8

0.7

0.6

(0.3)

(0.7)

(0.7)

(0.2)

(0.1)

(0.7)

(0.1)

(0.7)

(0.1)

(0.2)

(0.1)

Gross Exposurein $ bn

Net change

0.1

(0.2)
(0.1)

Amortization
1.0

0.8

0.3

Airbus Customer
Financing Gross
Exposure

Sell Down

(0.6)

(0.5)

(0.1)

(0.2)

(0.7)
(0.1)

(0.6)

0.2
(0.2)
(0.1)

(0.2)

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

1.5

1.5

1.8

1.7

1.4

1.5

1.6

1.3

1.5

1.7

1.5

0.9

0.9

Net Exposure fully provisioned

Net Exposure fully provisioned

Net Exposure
Gross
Exposure€ 0.8 bn($ 0.9 bn)€ 0.2 bn)
Estimated
Collateral€ 0.6 bn($ 0.6 bn)

31 December 2018€/$ = 1.15

Net Exposure
Gross
Exposure€ 0.8 bn($ 0.9 bn)€ 0.2 bn)
Estimated
Collateral€ 0.6 bn($ 0.7 bn)

30 September 2019€/$ = 1.09

27

BALANCE SHEET HIGHLIGHTS: ASSETSIN € MILLION

Sept. 2019

Dec. 2018

Non-current Assets

58,56056,564of which Intangible & Goodwill

16,583

16,726of which Property, plant & equipment

17,143

16,773of which Investments & long-term financial assets

5,858

5,504

79

65

of which Positive hedge mark-to-market

1,010

1,031

of which Non-current securities

10,937

10,662Current Assets

55,35058,300of which Inventoryof which Contract assets

35,60431,891of which Contract assets

724

789

of which Trade receivables

5,036

6,078

444

286

of which Current securities

2,225

2,132

of which Cash

4,613

9,413

391

334

114,301

115,198

1.09

1.15

of which Positive hedge mark-to-market

Assets of disposal groups classified as held for sale
Total Assets
Closing rate € vs. $28

BALANCE SHEET HIGHLIGHTS: LIABILITIESIN € MILLION

Sept. 2019

Dec. 2018

Total Equity

4,739

9,719

of which OCI (Other Comprehensive Income)(2,339)

134

12

(5)

Total Non-current liabilities

53,182

44,693of which Pensions

11,0926,690

of which Other provisions

4,591

4,881

of which Financing debts

8,783

7,463

of which European governments’ refundable advances

3,816

4,233

of which Contract liabilities

15,72915,832of which Negative hedge mark-to-market

4,226

1,132

Total Current liabilities

56,07860,354263

382

of which Other provisions

5,451

6,935

of which Financing debts

3,416

1,463

577

344

of which Contract liabilities

24,742

26,229of which Trade liabilities

13,066

16,237of which Negative hedge mark-to-market
Liabilities of disposal groups classified as held for sale

2,242
302

1,623
432

114,301

115,198of which Non-controlling interestsof which Pensionsof which European governments’ refundable advances

Total Liabilities and Equity

29

SHAREHOLDING STRUCTURE AS AT 30 SEPTEMBER 2019

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

Treasury Shares (0.1%)

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

30

QUARTERLY REVENUES BREAKDOWN (CUMULATIVE)
IN € MILLION
Q1

H1

9m

FY

2019

2018

2019

2018

2019

2018

Airbus

9,697

7,222

24,043

18,54635,57230,47847,970

Helicopters

1,007

961

2,371

2,388

3,712

3,755

5,934

Defence and Space

2,112

2,217

5,015

4,652

7,706

7,051

11,063

Transversal & Elim.

(267)

(281)

(563)

(616)

(822)

(863)

(1,260)Consolidated Airbus

12,549

10,11930,86624,97046,16840,421

63,7072018 figures include A220, consolidated into Airbus as of 1 July 2018

2019

2018

31

QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE)
IN € MILLION
Q1

H1

9m

FY

2019

2018

2019

2018

2019

2018

Airbus

536

(41)

2,338

867

3,833

2,340

4,808

Helicopters

15

(3)

125

135

205

202

380

Defence and Space

101

112

233

309

355

409

935

Transversal & Elim.

(103)

(54)

(167)

(149)

(260)

(213)

(289)

Consolidated Airbus

549

14

2,529

1,162

4,133

2,738

5,834

2018 figures include A220, consolidated into Airbus as of 1 July 2018

2019

2018

32

QUARTERLY EBIT BREAKDOWN (CUMULATIVE)
IN € MILLION
Q1

H1

9m

FY

2019

2018

2019

2018

2019

2018

392

(2)

2,151

773

3,405

2,238

4,295

9

(10)

124

114

203

179

366

Defence and Space

(117)

265

(15)

382

83

479

676

Transversal & Elim.

(103)

(54)

(167)

(149)

(260)

(213)

(289)

Consolidated Airbus

181

199

2,093

1,120

3,431

2,683

5,048

AirbusHelicopters

2018 figures include A220, consolidated into Airbus as of 1 July 2018

2019

2018

33

9M 2019 IFRS VS. APM CASH FLOW RECONCILIATIONIN € BILLIONIN € BILLION
9m 20199m 2019

Cash provided by (used for) operating activities(3.9)

Cash provided by (used for) operating activities(3.9)

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

Cash provided by (used for) investing activities(1.6)

t/o Treasury swaps(0.1)

t/o Net change in securities

0.0

t/o Change in working capital(8.2)

Others0.4

Gross Cash Flow from Operations

4.5

Free Cash Flow

(5.1)

t/o M&A transactions(0.2)

Free Cash Flow before M&A(4.9)

t/o Customer Financing

0.0

FCF before M&A and Customer Financing

(4.9)

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GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM)
This presentation also contains certain “non-GAAP financial measures”, i.e. financial measures that either exclude or include amounts that are not excluded or includedin the most directly comparable measure calculated and presented in accordance with IFRS. For example, Airbus makes use of the non-GAAP measures “EBIT
Adjusted”, “EPS Adjusted” and “Free Cash Flow”.
Airbus uses these non-GAAP financial measures to assess its consolidated financial and operating performance and believes they are helpful in identifying trends in its
performance. These measures enhance management’s ability to make decisions with respect to resource allocation and whether Airbus is meeting established financial
goals.
Non-GAAP financial measures have certain limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of Airbus’ results asreported under IFRS. Because of these limitations, they should not be considered substitutes for the relevant IFRS measures.


EBIT: Airbus continues to use the term EBIT (Earnings before interest and taxes). It is identical to Profit before financial result and income taxes as defined by IFRS
rules.



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



EBIT Adjusted: Airbus uses an alternative performance measure, EBIT Adjusted, as a key indicator capturing the underlying business margin by excluding material
charges or profits caused by movements in provisions related to programmes, restructurings or foreign exchange impacts as well as capital gains/losses from thedisposal and acquisition of businesses.



EPS Adjusted is an alternative performance measure of a basic EPS as reported whereby the net income as the numerator does include Adjustments. For
reconciliation see slide 19.

Gross Cash position: Airbus defines its consolidated gross cash position as the sum of (i) cash and cash equivalents and (ii) securities (all as recorded in the
consolidated statements of financial position).



Net cash position: Airbus defines its consolidated net cash position as the sum of (i) cash and cash equivalents and (ii) securities, minus (iii) financing liabilities (allas recorded in the consolidated statement of financial position) as defined in Registration Document, MD&A section 2.1.6

Gross cash flow from operations: Gross cash flow from operations is an alternative performance measure and an indicator used by Airbus to measure its
operating cash performance before changes in working capital. It is defined in Registration Document, MD&A section 2.1.6.1 as cash provided by operating
activities, excluding (i) changes in other operating assets and liabilities (working capital), (ii) contribution to plan assets of pension schemes and (iii) realised foreignexchange results on treasury swaps.

Change in working capital is defined as changes in other operating assets and liabilities, as per IFRS rules, excluding some perimeter change impacts fromchanges in consolidation. It is comprised of inventories, trade receivables, contract assets and contract liabilities (including customer advances), trade liabilities, andother assets and other liabilities.



FCF: For the definition of the alternative performance measure Free Cash Flow, see Registration Document, MD&A section 2.1.6.1. It is a key indicator which allows
Airbus to measure the amount of cash flow generated from operations after cash used in investing activities.



FCF before M&A refers to FCF as defined in the Registration Document, MD&A section 2.1.6.1. adjusted for net proceeds from disposals and acquisitions. It is analternative performance measure and key indicator that reflects Free Cash Flow excluding those cash flows resulting from acquisitions and disposals of businesses.



FCF before M&A and Customer Financing refers to Free Cash Flow before mergers and acquisitions adjusted for cash flow related to aircraft financing activities.
It is an alternative performance measure and indicator that may be used from time to time by Airbus in its financial guidance, especially when there is higher
uncertainty around customer financing activities.