AIRBUS
H1 Results
2018

26 July 2018

Tom Enders
Chief Executive Officer

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 restatements and new segment reporting.

H1 Results
2018

Company
Highlights

Divisional
Highlights

Guidance
Highlights

H1 2018 HIGHLIGHTS

Robust commercial aircraft environment
Backlog of ~7,200 a/c underpins ramp-up plans

H1 financials reflect mainly A350 performance and delivery phasing

Focus on securing ramp-up

2018 Guidance maintained4

H1 2018 COMMERCIAL POSITIONING
Consolidated Airbus Order Book
by Division

5

Consolidated Airbus
External Revenue
by Division
H1 2018
18%

Airbus(in units)

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

206
7,168

Order Intake (net)2,068

Order book

12,537

Order Intake (net)

3,184

Order book

36,4629%€ 25 bnt/o defence € 4 bn

73%

▪ Airbus▪ Helicopters▪ Defence and SpaceAIRBUS: 261 gross orders, including 50 A350s and 10 A330neos in Q2. 206 net orders. Backlog 7,168 a/c pre-Farnborough
HELICOPTERS: 143 net orders for € 2.1 bn. Progress in military campaigns
DEFENCE AND SPACE: Order intake € 3.2 bn., supported by Space (THEOS-2). Future prospects in Military Aircraft and Unmanned
Aerial Systems

H1 2018 FINANCIAL PERFORMANCE

6

Revenues

EBIT Adjusted

in € bnin € bn / RoS (%)
4.7%

25.2

25.0

2.2%

1.2

0.6

H1 2017

H1 2018

H1 2017

H1 2018

EPS(1) Adjusted

FCF before M&A and Customer Financing

in €in € bn

0.96
H1 20170.32
H1 2017

H1 2018

H1 2018

(2.1)
(4.0)

(1) H1 2018 Average number of shares: 774,129,413 compared to 773,223,614 in H1 2017
Capitalised R&D: € 40 m in H1 2018 and € 149 m in H1 20172017 figures are amended with IFRS15 restatements

H1 2018 PROFITABILITY

7

EBIT Performancein € bn

H1 2018 EBIT Reported of € 1.1 bn
H1 2018 Adjustments resulting from:€- 98 m A400M provision
1.2

1.2

1.1

0.6
EBIT Adjusted

EBIT Reported

H1 2017

H1 2018€-

21 m

First H160s

€-

40 m

PDP mismatch / BS revaluation

€-

40 m

Compliance / Others€+ 157 m

Airbus DS perimeter change€-

Net Adjustments

42 m

EPS Performancein €H1 2018 Net Income of € 496 m
1.41

H1 2018 Net Income Adjusted of € 740 m

0.96
0.64
0.32
EPS Adjusted
H1 2017EPS Reported
H1 2018

Average number of shares: H1 2018 = 774,129,413 ; H1 2017 = 773,223,614
2017 figures are amended with IFRS15 restatements

H1 2018 tax rate on core business is 28%

CURRENCY HEDGE POLICY

8

IN $ BILLION▪ Forward Sales as of June 2018
▪ Collars as of June 2018
▪ Forward Sales and Collars as of Dec. 2017

2.8
4.6
12.7
1.7
22.6

19.1

11.6

13.3
4.7
Average hedge rates€ vs $
Forwards/Collars (2)£ vs $

2018

2022

2019

2020

2021

1.20

1.24

1.23

1.24

1.26

( 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)

1.49

1.46

1.37

1.36

1.36

remaining 6 months

and beyond

Mark-to-market value incl. in AOCI = € 0.2 bn
Closing rate @ 1.17 € vs. $In H1 2018, $ 4.5 bn (1) of new Forwards were added at an average rate of € 1 = $ 1.29
$ 12.7 bn (1) of hedges matured at an average rate of € 1 = $ 1.29

Hedge portfolio (1) 30 June 2018 at $ 80.3 bn (vs. $ 88.7 bn in Dec. 2017), at an average rate of $ 1.23 (2)In H1, $ 3.0 bn of hedges rolled-over intra-year in 2018 to align with backloaded delivery profile. No change to FY hedge rate
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

H1 2018 CASH EVOLUTION

9IN € BILLION

1.2

-4.5

13.4

0.3
-0.8
-1.2

Free Cash Flow before M&A : € - 4.1 bn
t/o Customer Financing: € - 0.1 bn-0.3

Free Cash Flow before M&A andCustomer Financing € - 4.0 bn

8.1

Net Cashposition Dec.
2017

Gross Cash Flow
Change infrom Operations Working Capital

Cash used forinvestingactivities before
M&A (1)

M&A

Shareholder
ReturnS
Returns

Early debt repayments of € 1.6 bn, no impact to net cash

(1) Thereof Capex of € - 0.9 bn; (2) M&A transactions include acquisitions and disposals of subsidiaries and businesses

Pensions &OthersNet Cashposition
Jun.2018

H1 Results
2018

Company
Highlights

Divisional
Highlights

Guidance
Highlights

11

IN € MILLION

H1 2018

H1 2017

Change

206

203

1.5%

7,168

6,771

5.9%

303

306(1)-1.0%

18,54618,182

2.0%

R&D Expenses

975

894

in % of Revenues

5.3%

4.9%

EBIT Adjusted

867

257

in % of Revenues

4.7%

1.4%

EBIT

773

381

in % of Revenues

4.2%

2.1%

Order Intake (net)

Deliveries by Programme (units)

Units
Order book

Deliveries (Units)
Revenues

9.1%

13%

2%

6%

79%

▪ A320▪ A350▪ A330▪ A380External Revenue Split
8%

237.4%
102.9%

Airbus combines former Commercial Division and HQ function, excluding Transversal activities

92%▪ Platforms ▪ Services
Revenues and EBIT Adjusted reflect back-loaded delivery profile
A320neo: GTF-powered aircraft deliveries resumed in Q2; 67 A320 deliveries in June. Ramp-up on-going, challenges remain
Compared to H1 2017, EBIT Adjusted reflects mainly the progress on the A350 programme(1) 304 a/c with Revenue Recognition (2 A330 on Operating Lease)
Capitalised R&D: € 22 m in H1 2018 and € 64 m in H1 20172017 figures are pro forma, amended with IFRS15 restatements and new segment reportingHELICOPTERS
IN € MILLION

12

H1 2018

H1 2017

Change

143

151

-5.3%

694

727

-4.5%

Order Intake (net)External Revenue Split

Units
Order book

51%

2,068

3,630

-43.0%

12,537

11,996

4.5%

141

190

-25.8%

2,388

2,716

-12.1%

R&D Expenses

147

142

in % of Revenues

6.2%

5.2%

Order Intake (net)

49%

Value
Order Book

Deliveries (Units)
Revenues

EBIT Adjusted

135

80

in % of Revenues

5.7%

2.9%

EBIT

114

80

in % of Revenues

4.8%

2.9%

▪ Defence

3.5%▪ Civil

46%
54%

68.8%
42.5%

Revenues reflect mainly perimeter change from sale of Vector Aerospace
Perimeter change impact on Revenues ~ € 300 m

EBIT Adjusted reflects solid underlying programme execution and transformation efforts
Adjustments reflect first H160s
Capitalised R&D: € 12 m in H1 2018 and € 77 m in H1 20172017 figures are pro forma, amended with IFRS15 restatements and new segment reporting (except for Order Intake and Order Book)▪ Platforms ▪ Services

DEFENCE AND SPACE
IN € MILLION

13

H1 2018

H1 2017

ChangeOrder Intake (net)

3,184

3,616

-11.9%

Order Book

36,462

38,708-5.8%External Revenue Split

32%

68%

4,652

4,900

R&D Expenses

136

144

in % of Revenues

2.9%

2.9%

EBIT Adjusted

309

298

in % of Revenues

6.6%

6.1%

EBIT

382

832

in % of Revenues

8.2%

17.0%

Revenues-5.1%▪ Platforms ▪ Services

-5.6%
3.7%

22%

29%

-54.1%

49%▪ Space Systems ▪ Military Aircraft▪ CIS(1) & Others
Revenues and EBIT Adjusted reflect stable core business and solid programme execution
Perimeter change impact on Revenues ~ € 150 m

Net Capital Gains from disposals: H1 2018 € 157 m, H1 2017 € 560 m
A400M: 8 a/c delivered in H1 2018, € 98 m provision update mainly for escalation(1) Communications, Intelligence, & Security
Capitalised R&D: € 6 m in H1 2018 and € 8 m in H1 20172017 figures are pro forma, amended with IFRS15 restatements and new segment reporting (except for Order Intake and Order Book)

H1 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 guidance are prepared under IFRS 15
Airbus 2018 Earnings and FCF guidance is before M&A. It now includes the A220* integration
Airbus targets to deliver around 800 commercial aircraft, without the A220 family
On top, around 18 A220 deliveries are targeted for H2
Before M&A, Airbus expects EBIT Adjusted of approximately € 5.2 bn in 2018:•

A220* integration is expected to reduce EBIT Adjusted by an estimated € -0.2 bn•

Therefore, including A220*, Airbus expects EBIT Adjusted to be approximately € 5.0 bn
Compared to 2017 Free Cash Flow before M&A and Customer Financing of € 2.95 bn,
Airbus expects Free Cash Flow to be at a similar level in 2018 before A220 integration•

A220* integration is expected to reduce Free Cash Flow before M&A and Customer Financing
by an estimated € -0.3 bn•

In 2018, Airbus expects the net cash impact of the A220 integration to be largely covered by
the funding arrangement as laid out in the terms of the C-Series A/C Ltd. Partnership,
meaning limited cash dilution* Based on preliminary data

15

KEY PRIORITIES

16

Deliver ~800 a/c in 2018, prepare further ramp-up potential
Leverage competitive product portfolio to strengthen market position
Boost efficiency and competitiveness through digital and innovation
Deliver EPS and FCF growth potential

Earnings and FCF taking off!

H1 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

1.31

1.27

1.26

1.25
(1)

1.27

1.22
1.20

1.21

1.18
1.18

1.16
Q1

(1) Q2 actual

1.29

FY 2018E

1.25

1.29

1.28

1.24

FY 2017

Q2

Q32018 EFY 2017Q4

H1 2018 DETAILED INCOME STATEMENT AND ADJUSTMENTS
IN € MILLION

19

thereof Adjustments
Impact on EBIT

H1 2018

1,120

EBIT

Operational

FX

AirbusDefence andSpace (1)

Helicopters

Airbus & ADS (2)

(40)

59

(21)

(40)

Financial
ResultH1 2018
Adjusted

1,162

in % of revenues

4.5%

4.7%

Interest income

8787Interest expenses

(199)

(199)

Other Financial Result

(191)

(165)

(26)

Finance Result

(303)

(165)

(138)

Income before taxes

817

(165)

1,024

Non-controlling interest

3

3

Net Income reported

496

740

774,129,413

774,129,413

0.64

0.96

Number of shares

EPS reported (in €)

(40)

59

(21)

(40)

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 40%(1) Thereof € - 98 m A400M provision update mainly for escalation, € + 157 m net capital gains from disposals(2) Thereof € - 54 m Airbus, € + 14 m ADS

H1 2017 DETAILED INCOME STATEMENT AND ADJUSTMENTS
IN € MILLION

20

thereof Adjustments
Impact on EBIT

H1 2017

Operational

FX

Defence and Space (1)Airbus& ADS (2)

484

174

Financial
ResultH1 2017
Adjusted

EBIT

1,211

in % of revenues

4.8%

2.2%

Interest income

81

81Interest expenses

(251)

(251)

Other Financial Result

242

277

(35)

Finance Result

72

277

(205)

Income before taxes

1,283

277

348

Non-controlling interest

00

Net Income reported

1,091

250

773,223,614

773,223,614

1.41

0.32

Number of shares

EPS reported (in €)484

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%
2017 figures are amended with IFRS15 restatements(1) Thereof € + 560 m Defence Electronics net capital gain, € + 28 m Other AD portfolio, € - 104 m A400M LMC(2) Thereof € + 124 m Airbus, € + 50 m ADS

174

553

Q2 2018 KEY FIGURES

21

IN € MILLION

Q2 2018

Q2 2017

Revenues

14,851

13,733

EBIT Adjusted

1,148

572

EBIT

921

636

Net Income

213

682

FCF before M&A

(223)

(948)

FCF before M&A and Customer Financing

(129)

(824)

IN € MILLION

Q2 2018

Q2 2017

Revenues

Q2 2018

Q2 2017

EBIT Adjusted

Q2 2018

Q2 2017

EBIT

Airbus11,324

10,016

908

360

775

429

Helicopters

1,427

1,540

138

86

124

86

Defence and Space

2,435

2,560

197

180

117

175

Transversal & Elim.

(335)

(383)

(95)

(54)

(95)

(54)

Consolidated Airbus

14,851

13,733

1,148

572

921

636

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

STRONG LIQUIDITY POSITION AS AT 30 JUNE 2018
€ 3.0 bn

22
Credit Facility:

Credit Facility (RSCF)▪ Maturity 2021, undrawn▪ Fully committed by 40 banks▪ No financial covenants, no MAC clause€ 9.7 bn
Financing Liabilities

Financing Liabilities:of which long-term : € 7.6 bn▪ Includes € 3.0 bn EMTN, € 0.5 bn Convertible

Bond, € 1.1 bn exchangeable bond and$ 2.5 bn USD 144A/RegS€ 17.8 bn
Total Gross CashInvested in highly rated securities

Credit Ratings:€ 8.1 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 FLOWIN € MILLION

23
H1 2018

H1 2017

Net Cash position at the beginning of the period

13,39011,113Gross Cash Flow from Operations (1)

1,185

1,050

Change in working capital(4,501)(2,907)

Cash used for investing activities (2)

(481)

(99)

of which Industrial Capex (additions) (3)(916)(1,060)(3,797)(1,956)272

591

Free Cash Flow before M&A(4,069)(2,547)of which Customer Financing

(101)

(454)

(3,968)(2,093)

Change in capital and non-controlling interests

112

79

Change in treasury shares / share buyback

(52)

0

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

(126)

(146)

(1,161)(1,045)

Others

(298)

(146)

Net cash position at the end of the period

8,068

7,899

Free Cash Flow (4)of which M&AFree Cash Flow before M&A and Customer Financing

2017 figures are amended with IFRS15 restatements(1) Excluding working capital change, contribution to plan assets of pension schemes and realised FX results on Treasury swaps(2) Excluding change in 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 POSITIONIN € MILLION

24
June 2018

Dec. 2017

Gross Cash

17,77524,587

Financing Debts(9,707)(11,197)

Short-term Financing Debts(2,071)(2,213)Long-term Financing Debts(7,636)(8,984)

8,068

13,390

32

29

8,100

13,419

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

2017 figures are amended with IFRS15 restatements

CUSTOMER FINANCING EXPOSURE
IN € MILLION

25

June 2018

Dec. 2017

AirbusJune 2018

Dec. 2017

Helicopters

Closing rate € 1 =$ 1.17$1.20$ 1.17$ 1.20Total Gross Exposure

1,052

1,264

134

135

of which off-balance sheet

31

144

4

4

Estimated value of collateral

(802)

(953)

(50)

(64)

Net Exposure

250

311

84

71

Provision and asset impairment

(250)

(311)

(84)

(71)

0

0

0

0

Net Exposure after provision

AIRBUS CUSTOMER FINANCING
IN € BILLION

Additions
0.8

Airbus Customer
Financing Gross
Exposure

0.3

0.6

26

Sell Down
0.8

0.4

Amortization

Net change

1.0
0.5

0.6

0.8

0.6

0.9

0.7
0.1

(0.2)
(0.3)
(1.1)
(2.2)

(0.1)

(0.2)
(0.1)

(0.1)

(0.7)

(0.7)

(0.2)

(0.1)

(0.1)

(0.7)

(0.7)

(0.6)

(0.5)
(0.7)
(0.2)

(0.1)

(0.1)

(0.2)

(0.3)
(0.1)

(0.1)

(0.2)

Gross Exposurein $ bn

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

H1 2018

1.8

1.5

1.5

1.8

1.7

1.4

1.5

1.6

1.3

1.5

1.7

1.5

1.2

Net Exposure fully provisioned

Net Exposure fully provisioned

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

Net Exposure
Gross
Exposure

Collateral€ 1.0 bn($ 1.1 bn)€ 1.1 bn($ 1.2 bn)€ 0.3 bn)
Estimated
Collateral€ 0.8 bn($ 0.9 bn)

31 December 201730 June 2018€/$ = 1.20€/$ = 1.17

BALANCE SHEET HIGHLIGHTS: ASSETSIN € MILLION

27

June 2018

Dec. 2017

Non-current Assets

51,90553,526of which Intangible & Goodwill

11,581

11,629of which Property, plant & equipment

16,476

16,611of which Investments & Financial assets

5,821

5,821

of which positive hedge mark-to-market

1,546

2,901

of which Non-current securities

10,551

10,944Current Assets

56,34757,346of which Inventory

33,77529,737of which Cash

5,138

12,016of which Current securities

2,086

1,627

of which positive hedge mark-to-market

467

663

Assets of disposal groups classified as held for sale

35

202

108,287

111,074

1.17

1.20

Total Assets

Closing rate € vs. $2017 figures are amended with IFRS15 restatements

BALANCE SHEET HIGHLIGHTS: LIABILITIESIN € MILLION

28

June 2018

Dec. 2017

Total Equity

9,191

10,742of which OCI (Other Comprehensive Income)

1,569

2,742

(8)

2

Non-current liabilities

40,054

42,162of which pensions

8,194

8,025

of which other provisions

1,649

1,754

of which financing debts

7,636

8,984

of which European governments refundable advances

5,359

5,537

of which Customer advances

15,521

16,659851

1,127

Current liabilities

59,04258,064of which pensions

253

336

of which other provisions

5,431

5,936

of which financing debts

2,071

2,213

391

364

of which Customer advances

33,96130,921of which negative hedge mark-to-market

1,321

1,144

0

106

108,287

111,074of which Non-controlling interestsof which negative hedge mark-to-market

of which European governments refundable advances

Liabilities of disposal groups classified as held for sale
Total Liabilities and Equity

2017 figures are amended with IFRS15 restatements

SHAREHOLDING STRUCTURE AS AT 30 JUNE 201829

Free Float

73.6%

Shareholder Agreement

26.3%

SOGEPA

11.1%

GZBV

11.0%

SEPI

4.2%

Treasury Shares

0.1%

0.1%
4.2%
11.0%

11.1%

73.6%

774,556,062 shares issued as at 30 June 2018

QUARTERLY REVENUES BREAKDOWN (CUMULATIVE)
IN € MILLION

Q1

H1

30
9m

2018

2017

2018

2017

7,222

8,166

18,54618,182

27,57943,486

961

1,176

2,388

2,716

4,197

6,335

Defence and Space

2,217

2,340

4,652

4,900

7,074

10,596

Transversal & Elim.

(281)

(240)

(616)

(623)

(821)

(1,395)

Consolidated Airbus

10,11911,442

24,97025,17538,02959,022

AirbusHelicopters

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

2018

FY
2017

2018

2017

QUARTERLY EBIT ADJUSTED BREAKDOWN (CUMULATIVE)
IN € MILLION

Q1

H1

31

9m

2018

2017

2018

2017

Airbus

(41)

(103)

867

257

806

2,383

Helicopters

(3)

(6)

135

80

161

247

Defence and Space

112

118

309

298

343

815

Transversal & Elim.

(54)

(28)

(149)

(82)

(156)

(255)

Consolidated Airbus

14

(19)

1,162

553

1,154

3,190

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

2018

FY
2017

2018

2017

QUARTERLY EBIT BREAKDOWN (CUMULATIVE)
IN € MILLION

Q1

32

H1

9m

2018

2017

2018

2017

Airbus

(2)

(48)

773

381

779

2,257

Helicopters

(10)

(6)

114

80

161

247

Defence and Space

265

657

382

832

835

462

Transversal & Elim.

(54)

(28)

(149)

(82)

(156)

(301)

Consolidated Airbus

199

575

1,120

1,211

1,619

2,665

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

2018

FY
2017

2018

2017

H1 2018 IFRS VS. APM CASH FLOW RECONCILIATIONIN € BILLION

H1 2018IN € BILLION

33
H1 2018

Cash provided by (used for) operating activities(3.49)Cash provided by (used for) operating activities(3.49)

t/o Reimbursement from / contribution to plan assets(0.13)Cash provided by (used for) investing activities(0.56)

t/o Treasury swaps

0.05

t/o Net proceeds (payment)

0.01

t/o Change in working capital(4.50)

Others0.26

Gross Cash Flow from Operations

1.19

Free Cash Flow

(3.80)

t/o M&A transactions

0.27

Free Cash Flow before M&A(4.07)

t/o Customer Financing(0.10)

FCF before M&A and Customer Financing(3.97)

GLOSSARY ON ALTERNATIVE PERFORMANCE MEASURES (APM)

34

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.