AIRBUS
Q1 Results
2018

27 April 2018

Harald Wilhelm
Chief Financial Officer

SAFE HARBOUR STATEMENT2DISCLAIMER
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 anddelivery 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 spaceprocurement 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 Airbus “Registration Document” dated 28 March 2018,
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.
IFRS 15 Disclaimer:
The Company has adopted the IFRS 15 standard as of 1st January 2018. 2017 figures are pro forma, amended with IFRS15 restatement and new segment reporting.

Q1 Results
2018

Company
Highlights

Divisional
Highlights

Guidance
Highlights

Q1 2018 HIGHLIGHTS

Backlog and commercial momentum support ramp-up plans

Q1 financials reflect engine and delivery phasing2018 Guidance confirmed

4

Q1 2018 COMMERCIAL POSITIONING
Consolidated Airbus Order Book
by Division

5

Consolidated Airbus
External Revenue
by Division
Q1 2018

Airbus(in units)

Helicopters(in € m)Defence and Space(in € m)Order Intake (net)
Order book

22%

45
7,189

Order Intake (net)

1,288

Order book

13,176

Order Intake (net)

1,581

Order book

37,3038%€ 10 bnt/o defence € 1.8 bn

70%

 Airbus
 Helicopters Defence and SpaceAIRBUS: 68 gross orders, including 20 A380s. 45 net orders. Backlog 7,189 a/c
A320 rate 70 feasibility study launched, A330 deliveries ~50 per year from 2019HELICOPTERS: 104 net orders for € 1.3 bn including 10 H160 and 51 Lakota LUH. Strong product endorsement despite soft C&P market
DEFENCE AND SPACE: Order intake € 1.6 bn. Continued progress in Tankers (1 MRTT in Belgium)

Q1 2018 FINANCIAL PERFORMANCE

6

Revenues

EBIT Adjusted

in € bnin € bn / RoS (%)

11.4

10.1

0.1%

0.01
Q1 2017

Q1 2018(0.02)-0.2%
Q1 2017

Q1 2018

EPS(1) Adjusted

FCF before M&A and Customer Financing

in €in € bn(0.12)(0.06)

(1.3)
(3.8)

Q1 2017

Q1 2018(1) Q1 2018 Average number of shares: 774,364,786 compared to 772,728,699 in Q1 2017
Capitalised R&D: € 18 m in Q1 2018 and € 61 m in Q1 20172017 figures are amended with IFRS15 restatement

Q1 2017

Q1 2018

Q1 2018 PROFITABILITY

7

EBIT Performancein € bn

Q1 2018 EBIT Reported of € 199 m
Q1 2018 Adjustments resulting from:€ + 159 m Airbus DS Communications Inc. business
0.58

0.01

0.20

(0.02)EBIT Adjusted

EBIT Reported€ + 46 m$ PDP mismatch / BS revaluation€-

Compliance / Others

20 m€ + 185 m

Q1 2017

Net Adjustments

Q1 2018

EPS Performancein €Q1 2018 Net Income of € 283 m

0.53
0.37

Q1 2018 Net Income Adjusted of € - 47 m
Q1 2018 tax rate on core business is 28 %(0.12)(0.06)EPS Adjusted
Q1 2017EPS Reported
Q1 2018

Average number of shares: Q1 2018 = 774,364,786 ; Q1 2017 = 772,728,699
2017 figures are amended with IFRS15 restatement

CURRENCY HEDGE POLICY

8

IN $ BILLION

 Forward Sales as of Mar. 2018
 Collars as of Mar. 2018
 Forward Sales and Collars as of Dec. 2017

3.8
6.5

17.7

4.6

1.7
21.5
17.9
11.7
3.7

Average hedge rates€ vs $
Forwards/Collars (2)£ vs $

2018

2022

2019

2020

2021

1.22

1.24

1.22

1.23

1.24

( 1.25 in Dec. 17 )( 1.24 in Dec. 17 )( 1.22 in Dec. 17 )( 1.23 in Dec. 17 )( 1.24 in Dec. 17)

1.52

1.46

1.37

1.36

1.36

remaining 9 months

and beyond

Mark-to-market value incl. in AOCI = € + 3.5 bn
Closing rate @ 1.23 € vs. $In Q1 2018, $ 0.4 bn of new Forwards were added at an average rate of € 1 = $ 1.34 (1)$ 6.5 bn of hedges matured at an average rate of € 1 = $ 1.31
Hedge portfolio (1) 31 March 2018 at $ 82.6 bn (vs. $ 88.7 bn in Dec. 2017), at an average rate of $ 1.23 (2)In Q1, $ 1.1 bn of hedges rolled-over intra-year to align with backloaded delivery profile
Approximately 60% of Airbus US$ revenues are naturally hedged by US$ procurement. Graph shows US$ Forward Sales and Collars(1) Total hedge amount contains $/€ and $/£ designated hedges; (2) Blended Forwards and Collars rate includes Collars at least favourable rate

Q1 2018 CASH EVOLUTION

9IN € BILLION

0.2

0.0
-3.8

-0.1

13.4
Free Cash Flow : € - 3.7 bn
t/o M&A (2): € + 0.2 bn
t/o Customer Financing: € - 0.0 bn

9.8Free Cash Flow before M&A andCustomer Financing € - 3.8 bn

Net Cash position
Dec. 2017

Gross Cash Flow fromOperations

Change in Working
CapitalCash used forinvesting activities(1)

2017 figures are amended with IFRS15 restatement(1) Thereof Capex of € - 0.4 bn; (2) M&A transactions include acquisitions and disposals of subsidiaries and businesses

Pensions & Others

Net Cash position
Mar.2018

Q1 Results
2018

Company
Highlights

Divisional
Highlights

Guidance
Highlights

11

IN € MILLION

Q1 2018

Q1 2017

Change456650.0%

7,189

6,744

6.6%

121

136

-11.0%

7,222

8,166

-11.6%

R&D Expenses

430

374

in % of Revenues

6.0%

4.6%

EBIT Adjusted

(41)

(103)

in % of Revenues

-0.6%

-1.3%

Order Intake (net)
Units
Order book

Deliveries by Programme (units)
1%
14%
7%

78%

Deliveries (Units)
Revenues

EBIT

(2)

(48)

in % of Revenues

0.0%

-0.6%

15.0%

 A320 A350 A330 A380External Revenue Split

-

9%

-

Airbus combines former Commercial Division and HQ function, excluding Transversal activities91% Platforms  Services
Revenues and EBIT Adjusted mainly reflect back-loaded delivery phasing
A320neo: ramp-up progressing, GTF engine deliveries resuming
A350: learning curve progression

Capitalised R&D: € 9 m in Q1 2018 and € 42 m in Q1 20172017 figures are pro forma, amended with IFRS15 restatement and new segment reportingHELICOPTERS
IN € MILLION

12

Q1 2018

Q1 2017

Change

104

60

73.3%

744

748

-0.5%

1,288

1,417

-9.1%

13,176

12,921

2.0%

Deliveries (Units)52

78-33.3%

Revenues

961

1,176

-18.3%

Order Intake (net)External Revenue Split

Units
Order bookOrder Intake (net)

49%

51%

Value
Order Book

R&D Expenses

70

65

in % of Revenues

7.3%

5.5%

EBIT Adjusted

(3)

(6)

-0.3%

-0.5%

in % of Revenues

EBIT

(10)

(6)

in % of Revenues

-1.0%

-0.5%

Revenues reflect lower deliveries and Vector Aerospace deconsolidation
Perimeter change impact on Revenues ~ € 150 m

Transformation efforts compensating market softness

Capitalised R&D: € 6 m in Q1 2018 and € 16 m in Q1 20172017 figures are pro forma, amended with IFRS15 restatement and new segment reporting

7.7%

 Defence Civil

46%
54%

-

 Platforms  Services

DEFENCE AND SPACE

IN € MILLION

13

Q1 2018

Q1 2017

ChangeOrder Intake (net)

1,581

1,521

3.9%

Order Book

37,30339,159-4.7%

Revenues

2,217

2,340

-5.3%

R&D Expenses

58

60

in % of Revenues

2.6%

2.6%

EBIT Adjusted

112

118

in % of Revenues

5.1%

5.0%

EBIT

265

657

in % of Revenues

12.0%

28.1%

External Revenue Split

38%
62%

 Platforms  Services

-3.3%
-5.1%

21%

30%

-59.7%

49%

 Space Systems  Military Aircraft CIS(1) & Others
Revenues and EBIT reflect perimeter changes
Perimeter change impact on Revenues ~ € 100 m

Capital Gain from disposal of Airbus DS Communications Inc. business
A400M: 4 a/c delivered in Q1 2018

(1) Communications, Intelligence & Security
Capitalised R&D: € 3 m in Q1 2018 and € 3 m in Q1 20172017 figures are pro forma, amended with IFRS15 restatement and new segment reporting

Q1 Results
2018

Company
Highlights

Divisional
Highlights

Guidance
Highlights

2018 GUIDANCEAs the basis for its 2018 guidance, Airbus expects the world economy and air traffic to grow in linewith prevailing independent forecasts, which assume no major disruptions
Airbus 2018 earnings and FCF guidance is based on a constant perimeter, before M&A
Airbus expects to deliver around 800 commercial aircraft which depends on engine
manufacturers meeting commitments
Based on around 800 deliveries:
Compared to 2017 EBIT Adjusted of € 4.25 bn as reported, pre-IFRS15, Airbus expects, before
M&A:•

An increase in EBIT Adjusted of approximately 20%•

IFRS15 is expected to further increase EBIT Adjusted by an estimated € 0.1 bn•

Therefore, Airbus expects to report EBIT Adjusted of approximately € 5.2 bn prepared under
IFRS 15 in 20182017 Free Cash Flow before M&A and Customer Financing was € 2,949 m
Free Cash Flow is expected to be at a similar level as 2017, before M&A and Customer
Financing15

KEY PRIORITIES

16

Deliver ~800 a/c in 2018, prepare further ramp-up potential
Leverage competitive aircraft portfolio
Agree and deliver on A400M re-baselined roadmap
Invest in our future for improved efficiency and competitiveness
Deliver EPS and FCF growth potential

Earnings and FCF taking off!

Q1 Results
2018

Appendix

EXPECTED AIRBUS AVERAGE HEDGE RATES € VS. $18

Active exposure management

1.36
1.34

Average
Hedge Rates

1.33

1.32
1.30

(1)

1.31

1.27
1.25

1.27

1.24
1.22
1.20
1.18

1.19

1.19

Q2

Q3

Q4

FY 2018E

FY 2017

1.16
Q1(1) Q1 actual

1.29

FY 2018E

1.25

1.29

1.28
1.26

FY 2017

Q1 2018 DETAILED INCOME STATEMENT AND ADJUSTMENTS
IN € MILLION

19

thereof Adjustments
Impact on EBIT

Q1 2018

Operational

FX

AirbusDefence andSpace (1)

Helicopters

Airbus

(7)

153

(7)

46

Financial
Result

Q1 2018
Adjusted

EBIT

199

in % of revenues

2.0%

0.1%

Interest income

4141Interest expenses

(104)

(104)

Other Financial Result

102

117

(15)

Finance Result

39

117

(78)

Income before taxes

238

117

(64)

Non-controlling interest(1)

Net Income reported

283

(47)

774,364,786

774,364,786

0.37(0.06)

Number of shares

EPS reported (in €)

(7)

153

(7)

46

14

(1)

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 -19%

(1) Thereof € 159 m Airbus DS Communications business in the US net capital gain

Q1 2017 DETAILED INCOME STATEMENT AND ADJUSTMENTS
IN € MILLION

20

thereof Adjustments
Impact on EBIT

Q1 2017

Operational

FX

Defence and Space (1)Airbus539

55

Financial
Result

Q1 2017
Adjusted

EBIT

575

in % of revenues

5.0%(0.2)%

Interest income

3939Interest expenses

(127)

(127)

Other Financial Result

(118)

(97)

(21)

Finance Result

(206)

(97)

(109)

Income before taxes

369

(97)

(128)

Non-controlling interest

(1)

(1)

Net Income reported

409

(93)

772,728,699

772,728,699

0.53(0.12)

Number of shares

EPS reported (in €)539

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%(1) Thereof € 560 m Defence Electronics net capital gain2017 figures are amended with IFRS15 restatement

55

(19)

Q1 2018 KEY FIGURES

21

IN € MILLION

Q1 2018

Q1 2017

10,11911,442

EBIT Adjusted

14

(19)

EBIT

199

575

Net Income

283

409

FCF before M&A(3,846)(1,599)

FCF before M&A and Customer Financing(3,839)(1,269)

RevenuesIN € MILLION

Q1 2018

Q1 2017

Revenues
Airbus

Q1 2018

Q1 2017

EBIT Adjusted

Q1 2018

Q1 2017

EBIT

7,222

8,166

(41)

(103)

(2)

(48)

961

1,176

(3)

(6)

(10)

(6)

Defence and Space

2,217

2,340

112

118

265

657

Transversal & Elim.

(281)

(240)

(54)

(28)

(54)

(28)

Consolidated Airbus

10,11911,442

14

(19)

199

575

Helicopters

2017 figures are pro forma, amended with IFRS15 restatement and new segment reporting

STRONG LIQUIDITY POSITION AS AT 31 MARCH 2018
€ 3.0 bn

22
Credit Facility:

Credit Facility (RSCF)

 Maturity 2021, undrawn
 Fully committed by 40 banks
 No financial covenants, no MAC clause€ 11.2 bn
Financing Liabilities

Financing Liabilities:of which long-term : € 8.8 bn
 Includes € 3.0 bn EMTN, € 0.5 bn Convertible

Bond, € 1.1 bn exchangeable bond and$ 2.5 bn USD 144A/RegS€ 20.9 bn
Total Gross CashInvested in highly rated securities

Credit Ratings:€ 9.8 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

DETAILED FREE CASH FLOW23
Q1 2018

Q1 2017

13,39011,113206

230(3,797)(1,493)

Cash used for investing activities (2)

(65)

147

of which Industrial Capex (additions) (3)

(393)

(482)

(3,656)(1,116)190

483

Free Cash Flow before M&A(3,846)(1,599)of which Customer Financing

(7)

(330)

(3,839)(1,269)IN € MILLIONNet Cash position at the beginning of the period
Gross Cash Flow from Operations (1)Change in working capitalFree Cash Flow (4)of which M&AFree Cash Flow before M&A and Customer Financing
Change in capital and non-controlling interests
Change in treasury shares / share buyback(37)

Contribution to plan assets of pension schemes
Cash distribution to shareholders / non - controlling interests

(53)

(106)

Others

125

(141)

9,769

9,750

Net cash position at the end of the period

2017 figures are amended with IFRS15 restatement(1) Excluding working capital change, contribution to plan assets of pension schemes and realised FX results on Treasury swaps(2) Excluding change of securities and change in cash from changes in consolidation and excluding bank activities; (3) Excluding leased and financial assets; (4) Excluding change insecurities, change in cash from changes in consolidation, contribution to plan assets, realised FX results on Treasury swaps and bank activities

NET CASH POSITION

24
Mar. 2018

Dec. 2017

20,923

24,587(11,154)(11,197)

Short-term Financing Debts(2,326)(2,213)Long-term Financing Debts(8,828)(8,984)

9,769

13,390

30

29

9,799

13,419IN € MILLION
Gross Cash
Financing Debts

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

2017 figures are amended with IFRS15 restatement

CUSTOMER FINANCING EXPOSURE
IN € MILLION

25

Mar. 2018

Dec. 2017

AirbusMar. 2018

Dec. 2017

Helicopters

Closing rate € 1 =

$1.23

$1.20

$ 1.23$ 1.20Total Gross Exposure

1,032

1,264

135

135

of which off-balance sheet

31

144

4

4

Estimated value of collateral

(754)

(953)

(62)

(64)

Net Exposure

278

311

73

71

Provision and asset impairment

(278)

(311)

(73)

(71)

0

0

0

0

Net Exposure after provision

AIRBUS CUSTOMER FINANCING
IN € BILLION

Additions
1.5

Airbus Customer
Financing Gross
Exposure

Sell Down

Amortization

Net change

1.5
1.0

0.6

26

0.9

0.5

0.8
0.4

0.3

0.6

0.8

1.0
0.5

0.9

0.6

0.9

0.6

0.7
0.0

(0.3)
(0.5) (0.7)(0.7) (0.7) (0.6)(0.7)(0.2) (0.2) (0.7) (0.7)(0.2)(0.2) (1.0)(0.1)(0.9) (0.7)(1.1) (0.1) (0.1)
(0.3)
(0.1)
(0.2)
(0.1) (0.2)(0.2) (0.1)(0.1) (0.0)(1.3) (2.2)(0.1) (0.2) (0.2)
(0.1)
(0.3)
(0.2)
(0.2)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Gross Exposurein $ bn

3.9

3.1

3.8

4.8

4.6

3.8

1.8

Net Exposure fully provisioned

1.5

1.5

1.8

1.7

1.4

1.5

1.6

1.3

1.5

Net Exposure fully provisioned

Net Exposure
Gross
Exposure€ 1.3 bn($ 1.5 bn)€ 0.3 bn
Estimated

Gross

Collateral

Exposure€ 1.0 bn($ 1.1 bn)

Net Exposure€ 0.3 bn

Estimated
Collateral€ 1.0 bn
€ 0.8 bn($ 1.3 bn) ($ 0.9 bn)

31 December 201731 March 2018€/$ = 1.20€/$ = 1.23

1.7

1.5

1.3

IFRS 15 BALANCE SHEET IMPACT: KEY AIRBUS CONSIDERATIONS
Reflects equity impact as of Jan. 1st, 2017 (~ € - 2.1 bn) and subsequent FY 2017 IFRS 15
P&L impact
Impacts primarily driven by A350, A400M, NH90 and Tiger

Equity impact(€ - 2.6 bn)

Quantitative impacts on equity are phasing differences on contracts from:•

Separation of contracts into Performance Obligations (POs)•

Timing of revenue recognition•

Variable revenue constraints

Balance Sheet restated to reflect equity adjustments
Two new Balance Sheet accounts created:

Reclassificationof Balance
Sheet items•

Contract Assets: comprise mainly PoC Receivables previously recorded in Trade
Receivables•

Contract Liabilities: comprise mainly customer advances, previously recorded in Other
Liabilities

Costs to obtain or fulfil a contract reclassified from Inventory to Other Assets

Netting ofContract
Assets andLiabilities

Contract Assets and Liabilities are netted on a contract-by-contract basis
For example, Contract Assets show PoC Receivables net of advances and Contract
Liabilities show advances net of PoC Receivables

27

BALANCE SHEET HIGHLIGHTS: ASSETS

28

Mar. 2018

Dec. 2017

Non-current Assets

53,88753,526of which Intangible & Goodwill

11,573

11,629of which Property, plant & equipment

16,502

16,611of which Investments & Financial assets

5,798

5,821

of which positive hedge mark-to-market

3,790

2,901

of which Non-current securities

10,755

10,944Current Assets

58,562

57,346of which Inventory

32,81429,737of which Cash

8,354

12,016of which Current securities

1,814

1,627

of which positive hedge mark-to-market

997

663

Assets of disposal groups classified as held for sale

28

202

112,477

111,074

1.23

1.20

IN € MILLION

Total Assets
Closing rate € vs. $2017 figures are amended with IFRS15 restatement

BALANCE SHEET HIGHLIGHTS: LIABILITIES

29

Mar. 2018

Dec. 2017

Total Equity

12,066

10,742of which OCI (Other Comprehensive Income)

3,983

2,743

10

2

Non-current liabilities

41,33042,162of which pensions

8,380

8,025

of which other provisions

1,767

1,754

of which financing debts

8,828

8,984

of which European governments refundable advances

5,527

5,537

of which Customer advances

16,407

16,659848

1,127

Current liabilities

59,05958,064of which pensions

289

336

of which other provisions

5,602

5,936

of which financing debts

2,326

2,213

369

364

32,59730,921of which negative hedge mark-to-market

837

1,144

Liabilities of disposal groups classified as held for sale

22

106

112,477

111,074IN € MILLION

of which Non-controlling interestsof which negative hedge mark-to-market

of which European governments refundable advancesof which Customer advances

Total Liabilities and Equity

2017 figures are amended with IFRS15 restatement

SHAREHOLDING STRUCTURE AS AT 31 MARCH 201830

Free Float

73.6%

Shareholder Agreement

26.4%

SOGEPA

11.1%

GZBV

11.1%

SEPI

4.2%

Treasury Shares

0.0%

4.2%
11.1%

11.1%

73.6%

774,556,062 shares issued as at 31 March 2018

QUARTERLY REVENUES BREAKDOWN (CUMULATIVE)
IN € MILLION

Q1

H1

9m

2017

7,222

8,166

18,182

27,57943,486

961

1,176

2,716

4,197

6,335

Defence and Space

2,217

2,340

4,900

7,074

10,596

Transversal & Elim.

(281)

(240)

(623)

(821)

(1,395)

Consolidated Airbus

10,11911,442

25,17538,02959,022

Helicopters

Helicopters and Defence and Space figures reflect perimeter change impact
2017 figures are pro forma, amended with IFRS15 restatement and new segment reporting

2017

2018

FY

2018
Airbus

2018

31

2017

2018

2017

QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE)
IN € MILLION

Q1

H1

9m
2017

2018

FY

2018

2017

Airbus

(41)

(103)

257

806

2,383

Helicopters

(3)

(6)

80

161

247

Defence and Space

112

118

298

343

815

Transversal & Elim.

(54)

(28)

(82)

(156)

(255)

Consolidated Airbus

14

(19)

553

1,154

3,190

Helicopters and Defence and Space figures reflect perimeter change impact
2017 figures are pro forma, amended with IFRS15 restatement and new segment reporting

2018

32

2017

2018

2017

QUARTERLY EBIT BREAKDOWN (CUMULATIVE)
IN € MILLION

Q1

33

H1
2017

2018

FY

2018

2017

Airbus

(2)

(48)

381

779

2,257

Helicopters

(10)

(6)

80

161

247

Defence and Space

265

657

832

835

462

Transversal & Elim.

(54)

(28)

(82)

(156)

(301)

Consolidated Airbus

199

575

1,211

1,619

2,665

Helicopters and Defence and Space figures reflect perimeter change impact
2017 figures are pro forma, amended with IFRS15 restatement and new segment reporting

2018

9m
2017

2018

2017

Q1 2018 IFRS VS. APM CASH FLOW RECONCILIATIONIN € BILLION

Q1 2018IN € BILLION

34
Q1 2018

Cash provided by (used for) operating activities(3.59)Cash provided by (used for) operating activities(3.59)

t/o Reimbursement from / contribution to plan assets(0.05)Cash provided by (used for) investing activities(0.12)

t/o Treasury swaps

0.05

t/o Net proceeds (payment)

0.01

t/o Change in working capital(3.80)

Others0.06

Gross Cash Flow from Operations

0.21

Free Cash Flow

(3.66)

t/o M&A transactions

0.19

Free Cash Flow before M&A(3.85)

t/o Customer Financing(0.01)

FCF before M&A and Customer Financing(3.84)

GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM)

35

The following Presentation also contains certain “non-GAAP financial measures”, i.e. financial measures that either exclude or include amounts that are notexcluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. For example, Airbus makes use of the nonGAAP 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 as reported 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 finance cost 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, restructuring or foreign exchange impacts as well as capitalgains/losses from the disposal 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 statement 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 (all as recorded in the consolidated statement of financial position) as defined in 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 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
foreign exchange results on Treasury swaps.

Change in working capital: it is identical to changes in other operating assets and liabilities as defined by IFRS Rules. It is comprised of inventories, tradereceivables, other assets and prepaid expenses netted against trade liabilities, other liabilities (including customer advances), deferred income andcustomer financing.

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 whichallows the Company to measure the amount of cash flow generated from operations after cash used in investing activities.



FCF before M&A refers to FCF as defined in the Registration Document, MD&A section 2.1.6.1. adjusted for net proceeds from disposals and acquisitions.
It is an alternative performance measure and indicator that is important in order to measure FCF excluding those cash flows from the disposal andacquisition of businesses.



FCF before M&A and Customer Financing refers to free cash flow before mergers and acquisitions adjusted for cash flow related to aircraft financing
activities. It is an alternative performance measure and indicator that may be used from time to time by the Company in its financial guidance, esp. when
there is higher uncertainty around customer financing activities, such as during the suspension of ECA financing support.