First half-year 2021 Financial Report

2021 Semi-annual report of the Board of Directors ................................................................................................................................................. 2
Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Information for the six-month period ended 30 June 2021 .................. 4

Appendix: Review report of the independent auditor

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

2021 Semi-annual report of the Board of Directors
1.

Semi-annual report on activities

Main events in the first half-year of 2021
For an overview of the main events that occurred during the first half of 2021 and their impact on the Unaudited Condensed Interim IFRS
Consolidated Financial Information of the Company for the six-month period ended 30 June 2021 (the “Semi-Annual Financial Statements”),
please refer to the press release, which was approved by the Board of Directors on 28 July 2021 and will be issued on 29 July 2021, available
on Airbus’ website www.airbus.com.
For further information and detail regarding the Company’s activities, finances, financing, risk factors and corporate governance, please referto the Company’s website www.airbus.com and the documents posted thereon.

Related party transactions
Please refer to the notes to the Semi-Annual Financial Statements attached hereto (see “– Note 5: Related Party Transactions”).

2.

Risk factors

By systematically integrating Enterprise Risk Management (“ERM”) across the company, the Company is mitigating risk and increasing
opportunity, to support risk taking for value creation and competitiveness. Consequently, the Company has made ERM a key management
process, carefully followed by the Board of Directors.
The ERM system plays a key role to:-make the business more robust and predictable,-

support operational decision making,-improve the business results,-

reduce the exposure level to risks,-

ensure Airbus ERM compliance regarding the Dutch Corporate Governance Code.

For a description of the Enterprise Risk Management system, the main risks and uncertainties please refer to the:a.

Airbus SE Report of the Board of Directors 2020 (sections 4.5 and 4.6)
(https://www.airbus.com/content/dam/events/annual-general-meeting/AirbusSE-Board-Report-2020.pdf), andb.

Airbus SE Universal Registration Document (section “Risk Factors”)(https://www.airbus.com/content/dam/corporate-topics/financial-and-company-information/AIRBUSURD_2020_EV_2021_03_26_MEL.pdf)

2

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

3.

Semi-Annual Financial Statements

The Semi-Annual Financial Statements, including the review report by Ernst & Young Accountants LLP, are attached hereto.

4.

Statement of the Board of Directors

The Board of Directors of Airbus hereby declares that, to the best of its knowledge:
the Semi-Annual Financial Statements for the period ended 30 June 2021 give a true and fair view of the assets, liabilities, financial positionand profits or losses of Airbus and undertakings included in the consolidation taken as a whole; andthis Semi-Annual Board Report (including the press release, which was approved by the Board of Directors on 28 July 2021 and will be issued
on 29 July 2021) gives a true and fair view of the position as per the balance sheet date, and of the development and performance during thefirst half of the 2021 financial year and expected course of events of Airbus and undertakings included in the consolidation taken as a whole.
This Semi-Annual Board Report has paid special attention to investments and circumstances upon which the development of revenues andprofitability is dependent, as these have been described herein.

28 July 2021,
The Board of Directors
René Obermann, Chairman
Guillaume Faury, Chief Executive Officer
Victor Chu, Director
Jean-Pierre Clamadieu, Director
Ralph D. Crosby, Director
Lord Paul Drayson, Director
Mark Dunkerley, Director
Stephan Gemkow, Director
Catherine Guillouard, Director
María Amparo Moraleda Martínez, Director
Claudia Nemat, Director
Carlos Tavares, Director

3

Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

Contents
1 Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Statements ......................................................................5
Unaudited Condensed Interim IFRS Consolidated Income Statement ....................................................................................................5
Unaudited Condensed Interim IFRS Consolidated Statement of Comprehensive Income .....................................................................6
Unaudited Condensed Interim IFRS Consolidated Statement of Financial Position ...............................................................................7
Unaudited Condensed Interim IFRS Consolidated Statement of Cash Flows .........................................................................................9
Unaudited Condensed Interim IFRS Consolidated Statement of Changes in Equity ............................................................................10
2 Notes to the Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Statements............................................... 111.

The Company...............................................................................................................................................................................112.

Impact of the COVID-19 pandemic .............................................................................................................................................113.

Accounting Policies ......................................................................................................................................................................124.

Acquisitions and Disposals ..........................................................................................................................................................13

5.

Related Party Transactions .........................................................................................................................................................13

6.

Segment Information....................................................................................................................................................................13

7.

Revenue and Gross Margin .........................................................................................................................................................14

8.

Research and Development Expenses .......................................................................................................................................15

9.

Other Income and Other Expenses .............................................................................................................................................15

10.

Share of Profit from Investments Accounted for under the Equity Method and Other Income from Investments ...................15

11.

Total Financial Result ..................................................................................................................................................................15

12.

Income Taxes...............................................................................................................................................................................15

13.

Earnings per Share ......................................................................................................................................................................16

14.

Intangible Assets and Property, Plant and Equipment ...............................................................................................................16

15.

Investments Accounted for under the Equity Method .................................................................................................................16

16.

Other Investments and Other Long-Term Financial Assets .......................................................................................................16

17.

Inventories ....................................................................................................................................................................................16

18.

Provisions .....................................................................................................................................................................................17

19.

Other Financial Assets and Other Financial Liabilities ...............................................................................................................17

20.

Other Assets and Other Liabilities ...............................................................................................................................................18

21.

Total Equity ..................................................................................................................................................................................18

22.

Net Cash ......................................................................................................................................................................................19

23.

Financial Instruments ...................................................................................................................................................................20

24.

Litigation and Claims....................................................................................................................................................................21

25.

Number of Employees .................................................................................................................................................................23

26.

Events after the Reporting Date ..................................................................................................................................................23

4

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

1
Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Statements
Unaudited Condensed Interim
IFRS Consolidated Income Statement(In € million)
Revenue
Cost of sales
Gross margin
Selling expenses
Administrative expenses
Research and development expenses
Other income
Other expenses
Share of profit from investments accounted for underthe equity method
Other income from investments
Profit (Loss) before financial result and income
taxesInterest income
Interest expense
Other financial result
Total financial result
Income taxes
Profit (Loss) for the period

Note
7

1 January 30 June 2021
24,637

1 January 30 June 2020
18,9481 April 30 June 2021
14,177

1 April 30 June 2020
8,317

7

(19,876)4,761(17,996)952(10,895)
3,282(8,566)
(249)

8
9
9

(344)
(612)
(1,262)
158
(94)

(370)
(763)
(1,396)
68
(143)

(174)
(272)
(642)
137
(68)

(170)
(370)
(733)
39
(129)

10
10

(1)
121

(18)
111

(10)
12

(3)
(23)

2,727

(1,559)2,265(1,638)

32
(204)
142
(30)
(493)
2,204

82
(211)
(300)
(429)
64
(1,924)

18
(108)
1
(89)
(318)
1,858

29
(113)
132
48
158
(1,432)

2,231
(27)

(1,919)
(5)

1,869
(11)

(1,438)6

11
12

Attributable to:Equity owners of the parent (Net income)Non-controlling interests
Earnings per share
Basic
Diluted

13
13

€

€

€

€

2.84
2.84

(2.45)(2.45)

2.38
2.38(1.84)(1.84)

The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.

5

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

Unaudited Condensed Interim
IFRS Consolidated Statement of Comprehensive Income(In € million)

Profit (Loss) for the period
Other comprehensive income

1 January 30 June 2021
2,204

1 January 30 June 2020
(1,924)

1 April 30 June 2021
1,858

1 April 30 June 2020
(1,432)

2,438
(45)

(919)
(305)

66
6

(2,498)
167

20
(382)

(78)
211

3
24

(80)
475

50
(2,284)(33)(64)(2,236)
(223)

(38)
297
1

(52)
1,382
117

45
618
427
2,631

(14)
599
(3,029)(4,953)

43
(57)
345
2,203

6
(369)
(852)
(2,284)

2,652
(21)

(4,934)
(19)

2,207
(4)

(2,280)(4)

Items that will not be reclassified to profit or loss:
Re-measurement of the defined benefit pension plans
Change in fair value of financial assets
Share of change from investments accounted for underthe equity method
Income tax relating to items that will not be reclassified
Items that may be reclassified to profit or loss:
Foreign currency translation differences for foreign
operations
Change in fair value of cash flow hedges
Change in fair value of financial assets
Share of change from investments accounted for underthe equity method
Income tax relating to items that may be reclassified
Other comprehensive income, net of tax
Total comprehensive income for the period
Attributable to:Equity owners of the parent
Non-controlling interests

The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.

6

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

Unaudited Condensed Interim
IFRS Consolidated Statement of Financial Position(In € million)

Note

30 June 2021

31 December 2020

14
1416,223
16,526
2
1,687
3,935
69
1,672
501
4,194
5,173
49,982

16,19916,674
2
1,578
3,855
48
3,483
483
4,023
5,350
51,69529,791
4,754
536
1,215
1,537
2,898
439
1,607
14,661
57,43830,401
5,132
468
1,074
2,432
2,216
620
1,618
14,43958,4000
107,4200
110,095

AssetsNon-current assets
Intangible assets
Property, plant and equipment
Investment property
Investments accounted for under the equity method
Other investments and other long-term financial assets
Non-current contract assets
Non-current other financial assets
Non-current other assets
Deferred tax assets
Non-current securities
Total non-current assets

15
16
19
20
22

Current assets
Inventories
Trade receivables
Current portion of other long-term financial assets
Current contract assets
Current other financial assets
Current other assets
Current tax assets
Current securities
Cash and cash equivalents
Total current assets

17
16
19
20
22
22

Assets and disposal group of assets classified as held for sale
Total assets

7

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

(In € million)

Equity and liabilities
Equity attributable to equity owners of the parent
Capital stock
Share premium
Retained earnings
Accumulated other comprehensive income
Treasury shares
Total equity attributable to equity owners of the parent
Non-controlling interests
Total equity

Liabilities
Non-current liabilities
Non-current provisions
Long-term financing liabilities
Non-current contract liabilities
Non-current other financial liabilities
Non-current other liabilities
Deferred tax liabilities
Non-current deferred income
Total non-current liabilities

Note

30 June 2021

31 December 2020

21

787
3,708
4,580
205
(23)
9,257
18
9,275

785
3,599
250
1,853
(42)
6,445
11
6,456

11,18913,05418,509
5,140
422
480
29
48,823

13,99814,082
19,212
5,657
436
451
32
53,868

5,319
1,902
10,56523,998
1,863
3,419
1,606
650
49,322
098,145
107,420

6,545
3,013
8,722
24,675
1,769
3,160
1,311
576
49,771
0
103,639
110,095

18
22
19
20

Current liabilities
Current provisions
Short-term financing liabilities
Trade liabilities
Current contract liabilities
Current other financial liabilities
Current other liabilities
Current tax liabilities
Current deferred income
Total current liabilities
Disposal group of liabilities classified as held for sale
Total liabilities
Total equity and liabilities

18
22

19
20

The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.

8

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

Unaudited Condensed Interim
IFRS Consolidated Statement of Cash Flows
1 January 30 June 2021

1 January 30 June 2020

2,231
(27)

(1,919)
(5)

1,051
(380)
129

1,421
608
(316)

478
(1)
(6)
(1,328)
(175)
740
2,712

532
(9)
18
100
(203)
(11,938)(11,711)

(802)

(933)

43

165

(7)

(481)

(194)

(250)

171
15
182
(592)

189
12
5,732
4,434

Change in financing liabilities
Changes in liability for puttable instruments
Changes in capital and non-controlling interests
Change in treasury shares
Cash (used for) provided by financing activities(2,210)0133
0(2,077)

7,600
78
83
(4)
7,757

Effect of foreign exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

179
222
14,43914,661

130
610
9,314
9,924

Note

(In € million)

Operating activities
Profit (Loss) for the period attributable to equity owners of the parent (Netincome)Loss for the period attributable to non-controlling interests
Adjustments to reconcile profit for the period to cash provided by operating
activities:
Depreciation and amortization
Valuation adjustments
Deferred tax expense (income)Change in income tax assets, income tax liabilities and provisions for income
tax
Results on disposals of non-current assets
Results of investments accounted for under the equity method
Change in current and non-current provisions
Contribution to plan assets
Change in other operating assets and liabilities
Cash provided by (used for) operating activities
Investing activities
Purchases of intangible assets, property, plant and equipment andinvestment property
Proceeds from disposals of intangible assets, property, plant and equipment
and investment property
Acquisitions of subsidiaries, joint ventures, businesses and non-controllinginterests (net of cash)
Payments for investments accounted for under the equity method, otherinvestments and other long-term financial assets
Proceeds from disposals of investments accounted for under the equity
method, other investments and other long-term financial assets
Dividends paid by companies valued at equity
Change in securities
Cash (used for) provided by investing activities
Financing activities

The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.

9

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

Unaudited Condensed Interim
IFRS Consolidated Statement of Changes in Equity
Equity attributable toequity owners of theparent5,975(In € million)
Balance at 1 January 2020

Non-controllinginterests
15

Total Equity
5,990

Loss for the period(1,919)(5)(1,924)

Other comprehensive income
Total comprehensive income for the period
Capital increase(3,015)(4,934)
40

(14)
(19)
0

(3,029)(4,953)
40

28
173

0
13

28
186

Change in treasury shares
Balance at 30 June 2020

40
1,322

0
9

40
1,331

Balance at 1 January 2021

6,445

11

6,456

Profit for the period
Other comprehensive income

2,231
421

(27)
6

2,204
427

Total comprehensive income for the period
Capital increase
Share-based payment (IFRS 2)

2,652
111
52

(21)
0
0

2,631
111
52

Equity transaction (IAS 27)
Change in treasury shares
Balance at 30 June 2021

(22)
19
9,257

28
0
18

6
19
9,275

Share-based payment (IFRS 2)
Equity transaction (IAS 27)

The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.

10

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

2
Notes to the Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Statements
1.

The Company

The accompanying Unaudited Condensed Interim IFRS Consolidated Financial Statements present the financial position and the resultsof operations of Airbus SE together with its subsidiaries referred to as “the Company”, a European public limited-liability company(Societas Europaea) with its seat (statutaire zetel) in Amsterdam, The Netherlands, its registered address at Mendelweg 30, 2333 CS
Leiden, The Netherlands, and registered with the Dutch Commercial Register (Handelsregister) under number 24288945. The Company’s
reportable segments are Airbus, Airbus Helicopters and Airbus Defence and Space (see “– Note 6: Segment Information”). The Company
is listed on the European stock exchanges in Paris, Frankfurt am Main, Madrid, Barcelona, Valencia and Bilbao. The Unaudited
Condensed Interim IFRS Consolidated Financial Statements were authorised for issue by the Company’s Board of Directors on
28 July 2021.

2.

Impact of the COVID-19 pandemic

In 2020, the COVID-19 pandemic resulted in significant disruption to the Company’s business operations and supply chain. For moredetails on the impact in 2020, please refer to the Company’s IFRS Consolidated Financial Statements as of 31 December 2020.
New variants and the successive waves of the COVID-19 pandemic, the resulting health and economic crisis and actions taken in responseto the spread of the pandemic, including government measures, lockdowns, travel limitations and restrictions, have resulted and may
continue to result in significant disruption to the Company’s business, operations and supply chain.
The aerospace industry including the financial health of operators, airlines, lessors and suppliers, commercial aircraft market, demand for
air travel and commercial air traffic have been severely impacted by the COVID-19 pandemic and the resulting health and economic crisis.
As a result, airlines have reduced capacity, grounded large portions of their fleets for over one year, sought to implement measures toreduce cash spending and secure liquidity. Some airlines are also seeking arrangements with creditors, restructuring or applying forbankruptcy or insolvency protection, which may have further consequences for the Company and its order book as well as otherconsequences resulting from the related proceedings.
On 21 January 2021, the Company announced its decision to update its production rates in response to the market environment. For its
A320 Family aircraft, the new average production rates were expected to lead to a gradual increase in production from the current rate of
40 per month to 43 and 45, respectively in the third and fourth quarter of 2021. The A220 monthly production rate increased from four tofive aircraft per month at the end of the first quarter of 2021. Widebody production was expected to remain stable at current levels. With
these new rates, the Company intended to preserve its ability to meet customer demand while protecting its ability to further adapt as theglobal market evolves.
On 27 May 2021, the Company provided suppliers with an update of its production plans based on its expectation that the commercial
aircraft market may recover to pre-COVID levels between 2023 and 2025, led by the single-aisle segment. In anticipation of a continued
recovering market, the Company confirmed an average A320 Family production rate of 45 aircraft per month in the fourth quarter of 2021
and called on suppliers to prepare for the future by securing a firm rate of 64 by the second quarter of 2023. The A220 monthly production
rate is confirmed to rise to around 6 in early 2022. The A350 production rate is expected to increase to 6 by Autumn 2022 while A330
production is expected to remain at an average monthly production rate of two per month.
The changes in the underlying assumptions used at 31 December 2020 related to traffic, estimated deliveries, forecasted gross marginand future cash-flows do not lead to significant variations regarding impairment or asset depreciation in the first half-year 2021.
The Company’s business, results of operations and financial condition have been and will continue to be materially affected by the COVID19 pandemic, and the Company continues to face significant risks and uncertainties. In addition to its impact on the financial viability ofoperators, airlines and lessors and the reduction of commercial air traffic, lockdowns, travel limitations and restrictions around the world
have posed logistical challenges and may cause disruptions to the Company’s business, its operations and supply chain. These measures
have and may continue to adversely affect the Company’s ability to deliver products and services as well as customers’ ability to takedelivery of aircraft.

11

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

The Company is monitoring the evolution of the COVID-19 pandemic and will continue to assess further impacts going forward. The mainelements related to the Unaudited Condensed Interim IFRS Consolidated Financial Statements as of 30 June 2021 are detailed in thefollowing sections.

2.1

Going concern and associated liquidity measures

In 2020, the Company announced measures to bolster its liquidity and balance sheet in response to the COVID-19 pandemic. For moredetails, please refer to the Company’s IFRS Consolidated Financial Statements as of 31 December 2020.
In the first quarter 2021, due to uncertainties related to the length of the current outbreak and the recovery pattern of demand for aircrafts,
the Company has decided to exercise the first extension option of six months of its € 6.2 billion Supplemental Liquidity Line.
As of 30 June 2021, the Company has a net cash position of € 6.5 billion with a total liquidity of € 33.7 billion before deducting short-term
financing liabilities (see “– Note 22: Net Cash).
Management considers the Company has sufficient resources to continue operating for at least 12 months and that there are no material
uncertainties about the Company’s ability to continue as a going concern.

2.2

Hedge accounting

The Company has maintained its defined hedge accounting policies. In the first half-year 2021, the Company performed a roll-overcampaign for a nominal amount of US$ 4.8 billion to re-align the hedging portfolio to the last available long term delivery plan.
In the Company’s assessment the risk of aircraft rescheduling beyond the risk management and the risk of future cancellations, notably
due to potential airlines default, have been included. On a quarterly basis, the Company reviews the underlying assumptions. As a result,€ 70 million have been reclassified to financial result in the first half-year 2021, corresponding to transactions no longer expected to occur.

2.3

Expected credit loss

The Company has also considered the impact of COVID-19 pandemic on the expected credit loss of its financial instruments (mainlyloans, trade and lease receivables). The amount and timing of the expected credit losses, as well as the probability assigned thereto, hasbeen based on the available information at the end of the first half-year 2021. As a result of this review no significant credit losses havebeen recorded in the first half-year 2021 (see “– Note 16: Other Investments and Other Long-Term Financial Assets”).

3.

Accounting Policies

The Unaudited Condensed Interim IFRS Consolidated Financial Statements are prepared in accordance with International Financial
Reporting Standards (“IFRS”), issued by the International Accounting Standards Board (“IASB”) as endorsed by the European Union(“EU”). They are prepared and reported in euro (“€”) and all values are rounded to the nearest million appropriately.
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect theabsolute figures.
These Unaudited Condensed Interim IFRS Consolidated Financial Statements are prepared in compliance with IAS 34 and should beread in conjunction with the IFRS Consolidated Financial Statements as of 31 December 2020. The Company’s accounting policies andmethods are unchanged compared to 31 December 2020. The implementation of other amended standards has no material impact on
the Unaudited Condensed Interim IFRS Consolidated Financial Statements as of 30 June 2021.

Amendments to IFRS 9, IAS 39 and IFRS 7 “Interest Rate Benchmark Reform – Phase 2”
Following the financial crisis, the reform and replacement of some benchmark interest rates such as LIBOR and other Interbank OfferedRates (“IBORs”) has become a priority for global regulators. There is still some uncertainty around the timing and precise nature of thesechanges.
The Company’s treasury is managing the transition plan, so that the existing contracts that refer to LIBORs shall be adjusted to ensure
contract continuity after cessation of relevant benchmarks and address term and credit differences between LIBORs and alternativereference rates. The changed reference rates will also impact systems, processes and risk and valuation models.
To manage the transition of the USD LIBOR-referenced derivatives contracts, the Company will adhere to the ISDA Fallback protocol that
ensures an automatic transition on the official cessation date scheduled on 30 June 2023 as stated by the UK FCA (Financial Conduct
Authority) on 5 March 2021. The official spread adjustment published by Bloomberg and fixed on 5 March 2021 (official announcement
date of the LIBOR cessation) will apply. On USD LIBOR-referenced loan contracts, the Company will apply a similar transition scheme tothe derivative contracts.
The Company is mainly exposed to USD LIBOR under Airbus Bank loan assets portfolio for an amount of € 288 million (for a notionalamount of US$ 473 million) and the interest rate swaps based on USD LIBOR used in the hedge relationship, for an amount of € 90 million(for a notional amount of US$ 1.5 billion) as developed under “– Note 38: Financial Instruments” of the IFRS Consolidated Financial
Statements as of 31 December 2020.

12

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

The Phase 2 amendments have no impact on these Unaudited Condensed Interim IFRS Consolidated Financial Statements as existing
contracts continue to refer to LIBORs as of 30 June 2021.

Use of Estimates and Judgements
In preparing the Unaudited Condensed Interim IFRS Consolidated Financial Statements, management makes assumptions and estimates.
These estimates are revised if the underlying circumstances have evolved or in light of new information. The underlying assumptions used
for the main estimates are similar to those described in the Company’s IFRS Consolidated Financial Statements as of 31 December 2020.
The only exception is the estimate of income tax liabilities which is determined in the interim financial statements using the estimatedaverage annual effective income tax rate applied to the pre-tax income of the interim period.

4.

Acquisitions and Disposals

Acquisitions
In 2020, Bombardier transferred its remaining shares in Airbus Canada Limited Partnership (“ACLP”) to Airbus and Investissement Québec(“IQ”). As per the agreement, Airbus acquired an additional 29.64% of the issued shares in ACLP. This agreement brought theshareholdings in ACLP for Airbus and IQ to 75% and 25%, respectively.
Airbus paid to Bombardier a consideration of US$ 591 million of which US$ 531 million was received at closing and US$ 60 million to be
paid over the 2020-22 period under certain conditions. The agreement also provides for the cancellation of Bombardier warrants owned
by Airbus, as well as releasing Bombardier of its future funding capital requirement to ACLP, previously performed through the non-voting
participation Class B common units in ACLP.
The call rights of Airbus in respect of all IQ’s interests in ACLP at fair market value have been extended by an additional three years to
January 2026.
The effect of this equity transaction on the equity attributable to the owners of ACLP amounted to € -53 million.
As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, also acquired the A220 and A330 work package
production capabilities from Bombardier in Saint Laurent, Québec. Under this non-material transaction, the fair value of the net assets
acquired amounted to US$ -4 million.

5.

Related Party Transactions

The Company has entered into various transactions with related entities; carried out in the normal course of business.

6.

Segment Information

The Company operates in three reportable segments which reflect the internal organisational and management structure according to thenature of the products and services provided.
•

Airbus — Development, manufacturing, marketing and sale of commercial jet aircraft of more than 100 seats, aircraft conversion
and related services; development, manufacturing, marketing and sale of regional turboprop aircraft and aircraft components. It also
includes the holding function of the Company and its bank activities.

•

Airbus Helicopters — Development, manufacturing, marketing and sale of civil and military helicopters; provision of helicopter
related services.

•

Airbus Defence and Space — Military Aircraft design, development, delivery, and support of military aircraft such as combat,
mission, transport and tanker aircraft and their associated services. Space Systems design, development, delivery, and support offull range of civil and defence space systems for telecommunications, earth observations, navigation, science and orbital systems.
Connected Intelligence provision of services around data processing from platforms, secure communication and cyber security. In
addition, the main joint ventures design, develop, deliver, and support missile systems as well as space launcher systems. Unmanned
Aerial Systems design, development, delivery and service support.

On 21 April 2021, the Company presented its plans to create integrated aerostructures assembly companies in both France and Germany,
and a third company as a new global player in the detail parts business, anchored in Germany.
The plans are subject to successful completion of the ongoing social process and have no impact on the segment structure describedabove.

13

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

The following tables present information with respect to the Company’s business segments. As a rule, inter-segment transfers are carriedout on an arm’s length basis. Inter-segment sales predominantly take place between Airbus and Airbus Defence and Space and between
Airbus Helicopters and Airbus. Consolidation effects are reported in the column “Eliminations”.
The Company uses EBIT as a key indicator of its economic performance.
Business segment information for the six-month period ended 30 June 2021 is as follows:(In € million)

Total revenue
Internal revenue
Revenue
thereofsales of goods at a point in timesales of goods over time
services, including sales of spare parts
Profit before financial result and income taxes(EBIT)
thereof research and development expenses
Interest result
Other financial result
Income taxes
Profit for the period

Airbus17,813(189)
17,624

AirbusHelicopters
2,594
(103)
2,491

AirbusDefenceand Space
4,538
(16)
4,522

Eliminations
0
0
0

Consolidated
Airbus24,945(308)
24,637

16,568
3
1,053

1,079
80
1,332

1,285
1,593
1,644

0
0
0

18,932
1,676
4,029

2,387
(1,039)

183
(119)

157
(113)

0
9

2,727
(1,262)
(172)
142
(493)
2,204

Airbus12,533(283)
12,250AirbusHelicopters
2,333
(157)
2,176

AirbusDefenceand Space
4,551
(29)
4,522

Eliminations
0
0
0

Consolidated
Airbus
19,417(469)
18,948

10,902
15
1,333

901
94
1,181

1,045
1,837
1,640

0
0
0

12,848
1,946
4,154(1,808)(1,146)

152
(140)

73
(119)

24
9

(1,559)(1,396)
(129)
(300)
64
(1,924)

Business segment information for the six-month period ended 30 June 2020 is as follows:(In € million)

Total revenue
Internal revenue
Revenue
thereofsales of goods at a point in timesales of goods over time
services, including sales of spare parts
Profit before financial result and income taxes(EBIT)
thereof research and development expenses
Interest result
Other financial result
Income taxes
Loss for the period

7.

Revenue and Gross Margin

Revenue increased by € +5,689 million to € 24,637 million (first half-year 2020: € 18,948 million). The increase is mainly driven by Airbus(€ +5,374 million) reflecting higher aircraft deliveries.
Revenue by geographical areas based on the location of the customer is as follows:
1 January 30 June 2021
7,473
9,152
4,659
1,483
298
1,572
24,637(In € million)

Asia-Pacific
EuropeNorth America
Middle East
Latin America
Other countries
Total

1 January 30 June 2020
4,115
9,390
2,947
843
286
1,367
18,948The gross margin increased by € +3,809 million to € 4,761 million compared to € 952 million in the first half-year 2020. It mainly reflects
higher aircraft deliveries at Airbus. In addition, in the first half-year 2020, Airbus was impacted by lower cost efficiency and recorded
charges triggered by the COVID-19 pandemic. The gross margin rate increased from 5.0% to 19.3%.
14

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

Deliveries of the A380 will cease in 2022. As a consequence and in addition to the net charge recorded in 2018, the Company recorded
a net charge of € 320 million in EBIT in 2020 as part of its continuous assessment of assets recoverability and review of onerous contract
provision assumptions. In the first half-year 2021, a positive EBIT impact of € 172 million was recorded, mainly reflecting the release ofprovision on the former A380 Lagardère facility that will be used for the modernised A320 FAL.
As of 30 June 2021, the Company has delivered a total of 99 A400M aircraft including 2 aircraft in the first half-year 2021.
The COVID-19 pandemic is weighing on the performance of development, production, flight testing, aircraft delivery and retrofit activities.
The Company has continued with development activities toward achieving the revised capability roadmap. Retrofit activities areprogressing in close alignment with the customer.
In 2020, an update of the contract estimate at completion was performed and a charge of € 63 million recorded reflecting mainly
the variation of price escalation indexes. Main year-end 2020 assumptions remain unchanged as of 30 June 2021.
Risks remain on the development of technical capabilities and associated costs, on aircraft operational reliability in particular with regard
to power plant, on cost reductions and on securing export orders in time as per the revised baseline.
Defence export licences to Saudi Arabia were suspended by the German Government until 31 March 2020. A revised Estimate atCompletion (EAC) for a customer contract was performed as of 31 December 2020, and the Company continues to engage with its
customer to agree a way forward. The outcome of these negotiations is presently unclear but could result in further significant financial
impacts. The year-end 2020 assessment remains unchanged as of 30 June 2021.

8.

Research and Development Expenses

Research and development expenses decreased by € -134 million to € 1,262 million compared to € 1,396 million in the first half-year
2020.

9.

Other Income and Other Expenses

Other income increased by € +90 million to € 158 million compared to € 68 million in the first half-year 2020.
Other expenses decreased by € -49 million to € -94 million compared to € -143 million in the first half-year 2020.

10. Share of Profit from Investments Accounted for under the Equity Method
and Other Income from Investments
Share of profit from investments under the equity method and other income from investments increased by € +27 million to € 120
million compared to € 93 million in the first half-year 2020. It includes dividends received from other investments classified at fair value
through OCI for an amount of € 108 million (first half-year 2020: € 137 million).

11.

Total Financial Result

Total financial result improved by € +399 million to € -30 million compared to € -429 million in the first half-year 2020. This is mainly due
to the revaluation of certain equity investments (see “– Note 16: Other Investments and Other Long-Term Financial Assets”).

12.

Income Taxes

The income tax expense amounts to € -493 million (first half-year 2020: income tax benefit of € +64 million) and corresponds to aneffective income tax rate of 18.3%. This includes impacts on tax risk updates and the tax-free revaluation of certain equity investments
under IFRS 9, partially offset by deferred tax asset impairments. Management will continue to assess its tax contingencies going forward,
whose outcome could result in further financial impacts.

15

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

13.

Earnings per ShareProfit (Loss) for the period attributable to equity owners of the parent (Net income)Weighted average number of ordinary shares
Basic earnings per share

1 January 30 June 2021
€ 2,231 million
784,852,012€ 2.84

1 January 30 June 2020
€ (1,919) million
782,700,007€ (2.45)

Diluted earnings per share – The Company’s dilutive potential ordinary shares are share-settled Performance Units relating to LongTerm Incentive Plans (“LTIP”).
During the first half-year 2021, the average price of the Company’s shares exceeded the exercise price of the share-settled Performance
Units and therefore 409,626 shares were considered in the calculation of diluted earnings per share.
As there was a loss in the first half-year 2020, the effect of potentially dilutive ordinary shares was anti-dilutive.

Profit (Loss) for the period attributable to equity owners of the parent (Net income),
adjusted for diluted calculation
Weighted average number of ordinary shares (diluted) (1)Diluted earnings per share
(1)

14.

1 January 30 June 2021

1 January 30 June 2020

€ 2,231 million
785,261,638€ 2.84€ (1,919) million
782,700,007€ (2.45)

In the first half-year 2021, dilution assumes conversion of all potential ordinary shares.

Intangible Assets and Property, Plant and Equipment

Intangible assets increased by € +24 million to € 16,223 million (prior year-end: € 16,199 million). Intangible assets mainly relate to
goodwill of € 13,008 million (prior year-end: € 12,999 million).
Property, plant and equipment decreased by € -148 million to € 16,526 million (prior year-end: € 16,674 million). Property, plant andequipment include right-of-use assets for an amount of € 1,615 million as of 30 June 2021 (prior year-end: € 1,804 million).

15.

Investments Accounted for under the Equity Method

Investments accounted for under the equity method increased by € +109 million to € 1,687 million (prior year-end: € 1,578 million).
They mainly include the equity investments in ArianeGroup and MBDA.

16.

Other Investments and Other Long-Term Financial Assets(In € million)

Other investments
Other long-term financial assets
Total non-current other investments and other long-term financial assets
Current portion of other long-term financial assets
Total

30 June 2021
2,377
1,558
3,935
536
4,471

31 December 2020
2,245
1,610
3,855
468
4,323

Other investments mainly comprise the Company’s participations and include the remaining investment in Dassault Aviation (9.90%,
prior year-end: 9.90%) amounting to € 821 million at 30 June 2021 (prior year-end: € 742 million).
Other long-term financial assets and the current portion of other long-term financial assets include other loans in the amount of€ 1,827 million as of 30 June 2021 (prior year-end: € 1,841 million), and the sales financing activities in the form of finance leasereceivables and loans from aircraft financing.

17.

Inventories

Inventories of € 29,791 million (prior year-end: € 30,401 million) decreased by € -610 million. This is driven by Airbus (€ -1,288 million)
partly offset by Airbus Helicopters (€ +407 million). In Airbus, the decrease mainly reflects lower inventory on the A350 programme as wellas the A380 deliveries and progressive winding down of the programme.

16Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

18.

Provisions
30 June 2021
7,569
8,939
16,508
11,1895,319(In € million)

Provisions for pensions
Other provisions
Total
thereof non-current portion
thereof current portion

31 December 2020
9,980
10,563
20,543
13,998
6,545

Provisions for pensions decreased mainly due to the increase of the discount rates in Germany, France, Canada and the UK during thefirst half-year 2021. The decrease amounts to € 2.5 billion recognised mainly in other comprehensive income and is subject to future
volatility.
In September 2020, a restructuring provision was recognised in response to the COVID-19 pandemic under other provisions for an
amount of € 1.2 billion including mainly the cost of voluntary and compulsory measures taking into account management’s best estimateof the impact of the working time adaptation and government support measures. Workforce adaptation plan has been progressing as
expected.
As of 30 June 2021 and 31 December 2020, the provision amounted to € 0.5 billion and € 1.0 billion respectively, reduced mainly by thecosts incurred.

19.

Other Financial Assets and Other Financial Liabilities

Other Financial Assets(In € million)

Positive fair values of derivative financial instruments
OthersTotal non-current other financial assets
Receivables from related companies
Positive fair values of derivative financial instruments
OthersTotal current other financial assets
Total

30 June 2021
1,644
28
1,672
846
374
317
1,537
3,209

31 December 2020
3,451
32
3,483
1,158
973
301
2,432
5,915

30 June 2021
1,258
3,747
135
5,140
1,206
169
132
356
1,863
7,003

31 December 2020
1,834
3,712
111
5,657
983
200
130
456
1,769

Other Financial Liabilities(In € million)

Liabilities for derivative financial instruments
European Governments' refundable advances
OthersTotal non-current other financial liabilities
Liabilities for derivative financial instruments
European Governments' refundable advances
Liabilities to related companies
OthersTotal current other financial liabilities
Total

7,426

In 2020, the Company has signed amendments to the French and Spanish A350 RLI contracts, leading to a re-measurement of the A350
RLI for an additional net amount of € 236 million in the third quarter, using an equivalent estimated market rate at the date of theamendments.
In the first half-year 2021, the European Governments’ refundable advances increased by € +4 million to € 3,916 million (prior year-end:€ 3,912 million).
The allocation of European Governments’ refundable advances between non-current and current presented in the Unaudited Condensed
Interim IFRS Consolidated Financial Statements ended 30 June 2021 is based on the applicable contractual repayment dates.

17

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

20.

Other Assets and Other Liabilities

Other Assets(In € million)

Cost to fulfil a contract
Prepaid expenses
OthersTotal non-current other assets
Value added tax claims
Cost to fulfil a contract
Prepaid expenses
OthersTotal current other assets
Total

30 June 2021
270
102
129
501
1,257
573
563
505
2,898
3,399

31 December 2020
282
76
125
483
1,025
557
191
443
2,216
2,699

30 June 2021
422
422
848
2,571
3,419
3,841

31 December 2020
436
436
749
2,411
3,160
3,596

Other Liabilities(In € million)

OthersTotal non-current other liabilities
Tax liabilities (excluding income tax)
OthersTotal current other liabilities
Total

21.

Total Equity

The Company’s shares are exclusively ordinary shares with a par value of € 1.00. The following table shows the development of thenumber of shares issued and fully paid:
30 June 2021
784,149,270
1,871,546
786,020,816(237,813)
785,783,003(In number of shares)

Issued as at 1 January
Issued for ESOP
Issued at end of period
Treasury shares
Outstanding at end of period

31 December 2020
783,173,115
976,155
784,149,270(432,875)
783,716,395

Holders of ordinary shares are entitled to dividends and to one vote per share at general meetings of the Company.
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts to € 9,257 million (prior year-end:€ 6,445 million) representing an increase of € +2,812 million. This is due to a net income for the period of € 2,231 million and an increasein other comprehensive income, principally related to a change in actuarial gains and losses of € +2,069 million partly offset by the markto market revaluation of the hedge portfolio of € -1,639 million.
The non-controlling interests (“NCI”) from non-wholly owned subsidiaries increased to € 18 million as of 30 June 2021
(prior year-end: € 11 million). These NCI do not have a material interest in the Company’s activities and cash flows.

18

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

22.

Net Cash

The net cash position provides financial flexibility to fund the Company’s operations, to react to business needs and risk profile and toreturn capital to the shareholders. This flexibility has been essential in managing the Company’s operations during the COVID-19
pandemic (see "– Note 2: Impact of the COVID-19 pandemic”).

30 June 2021
14,661
1,607
5,173
21,441(1,902)(13,054)
6,485(In € million)

Cash and cash equivalents
Current securities
Non-current securities
Gross cash position
Short-term financing liabilities
Long-term financing liabilities
Total

31 December 2020
14,4391,618
5,350
21,407(3,013)(14,082)
4,312

The net cash position on 30 June 2021 amounted to € 6,485 million (prior year-end: € 4,312 million), with a gross cash position of€ 21,441 million (prior year-end: € 21,407 million).

Cash and Cash Equivalents
Cash and cash equivalents are composed of the following elements:

30 June 2021
5,662
8,419
580
0
14,661(In € million)

Bank account and petty cash
Short-term securities (at fair value through profit and loss)
Short-term securities (at fair value through OCI)
OthersTotal cash and cash equivalents

31 December 2020
4,173
9,654
512
100
14,439Only securities with a maturity of three months or less from the date of the acquisition, that are readily convertible to known amounts ofcash and which are subject to an insignificant risk of changes in value, are recognised in cash equivalents.
Cash and cash equivalents have increased by € +0.3 billion from € 14.4 billion at 31 December 2020 to € 14.7 billion at 30 June 2021 andthey include payments received in advance from certain customers.
The main variations are as follows:
Cash provided by operating activities amounted to € +2.7 billion in the first half-year 2021, mainly driven by a profit translated into cash
partly offset by provision consumption related to the restructuring plan, a strong positive phasing impact from working capital including thenet payment made to suppliers in anticipation at the end of 2020 and a positive impact by certain agreements reached with suppliers
relating to negotiation on payment terms. Also, it reflects continued cash containment efforts.
Cash used for investing activities amounted to € -0.6 billion. The acquisition of real estate assets in the UK has negatively impacted cashused for investing activities, and also negatively impacted cash used for financing activities relating to the repayment of the existing leaseliabilities.
Cash used for financing activities amounted to € -2.1 billion and reflects the pre-payment of a US$1 billion bond issued on 9 April 2013 andthe repayment of the exchangeable bonds convertible into Dassault Aviation shares for an amount of € 1.0 bn.
Similar to previous years, the Company has supported its suppliers concerning supply chain financing arrangements.

19

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

Financing Liabilities
30 June 2021
11,131430
85
1,408
13,054
0
29
87
234
1,552
1,902
14,956(In € million)

Bonds and commercial papers
Liabilities to financial institutions
Loans
Lease liabilities
Total long term financing liabilities
Bonds and commercial papers
Liabilities to financial institutions
Loans
Lease liabilities
Others (1)Total short term financing liabilities
Total
(1)

31 December 2020
12,032418
94
1,538
14,082
1,075
111
94
260
1,473
3,013
17,095

Included in “others” are financing liabilities to joint ventures.

Long-term financing liabilities, mainly comprising of bonds and lease liabilities, decreased by € -1,028 million to € 13,054 million (prioryear-end: € 14,082 million), mainly due to pre-payment of a US$1 billion bond issued on 9 April 2013 in the US institutional market withan original maturity of ten years.
Short-term financing liabilities decreased by € -1,111 million to € 1,902 million (prior year-end: € 3,013 million), mainly due to therepayment of the exchangeable bonds to be convertible into Dassault Aviation shares issued on 14 June 2016 for an amount of € 1.0 bn.

23.

Financial Instruments

The following table presents the composition of derivative financial instruments:(In € million)

30 June 2021
1,644
374
2,018
(1,258)(1,206)(2,464)(446)

Non-current positive fair values
Current positive fair values
Total positive fair values of derivative financial instruments
Non-current negative fair values
Current negative fair values
Total negative fair values of derivative financial instruments
Total net fair values of derivative financial instruments

31 December 2020
3,451
973
4,424
(1,834)(983)(2,817)
1,607

The total net fair value of derivative financial instruments decreased by € -2,053 million to € -447 million (prior year-end: € 1,607 million)
as a result of the strengthened US dollar versus the euro associated with the mark to market valuation of the hedge portfolio.
The volume of hedged US dollar-contracts was US$ 80.2 billion as at 30 June 2021 (prior year-end: US$ 81.0 billion). The US dollar spot
rate was 1.19 US$/€ and 1.23 US$/€ at 30 June 2021 and at 31 December 2020, respectively. The average US dollar hedge rate for thehedge portfolio of the Company remains at 1.26 US$/€ as at 30 June 2021.

Carrying Amounts and Fair Values of 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 in detail in Note 38.2 to the 2020 IFRS Consolidated Financial Statements. For the firsthalf-year 2021, the Company has applied the same methodologies for the fair value measurement of financial instruments.
Carrying amount is a reasonable approximation of fair value for all classes of financial instruments listed in the first table of Note 38.2 tothe 2020 IFRS Consolidated Financial Statements, with the exception of:(In € million)

Financing liabilities
Bonds and commercial papers
Liabilities to financial institutions and others

30 June 2021
Book Value
Fair Value(11,131)(2,183)20(11,989)(2,183)31 December 2020
Book Value
Fair Value(13,107)(2,190)(13,997)(2,190)Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

Fair Value Hierarchy
Depending on the extent the inputs used to measure fair values rely on observable market data, fair value measurements may behierarchised according to the following levels of input:•

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 – fair values measured based on Level 2
input typically rely on observable market data such as interest rates, foreign exchange rates, credit spreads or volatilities;•

Level 3: inputs for the asset or liability that are not based on observable market data – fair values measured based on Level 3
input rely to a significant extent on estimates derived from the Company’s’ own data and may require the use of assumptions
that are inherently judgemental and involve various limitations.

The fair values disclosed for financial instruments accounted for at amortised cost reflect Level 2 input. Otherwise, the Company
determines mostly fair values based on Level 1 and Level 2 inputs and to a lesser extent on Level 3 input.
The following table presents the carrying amounts of the financial instruments held at fair value across the three levels of the fair value
hierarchy:(In € million)

Financial assets measured at fair value
Equity instruments
Derivative instruments
Securities
Customer financing
Cash equivalents
Total
Financial liabilities measured at fair value
Derivative instruments
Other financial liabilities
Total

Level 130 June 2021
Level 2
Level 3

Total

Level 131 December 2020
Level 2
Level 3

Total

1,859
0
6,780
0
8,419
17,058

0
2,018
0
0
580
2,598

518
0
0
267
0
785

2,377
2,018
6,780
267
8,999
20,441

1,780
0
6,968
0
9,654
18,402

0
4,424
0
0
512
4,936

465
0
0
237
0
702

2,245
4,424
6,968
237
10,16624,040000(2,449)0(2,449)

(15)
0
(15)

(2,464)0(2,464)000(2,805)0(2,805)

(12)
0
(12)

(2,817)0(2,817)

There has been no material changes in the valuation of the Level 3 financial instruments during the first half-year 2021.
As at 31 December 2020, the fair value of the written put options on non-controlling interests (“NCI puts”) relating to ACLP was nil, mainlyreflecting the latest projections on funding needs, slower ramp-up phasing and market projections. The fair value is unchanged as at 30
June 2021.
The fair value of these NCI puts are derived from a discounted cash flow analysis using the latest operating plan and a projection overthe lifetime of the A220 programme.

24.

Litigation and Claims

The Company is involved from time to time in various legal and arbitration proceedings in the ordinary course of its business, the mostsignificant of which are described below. Other than as described below, the Company 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 past significant effects on Airbus SE’s or the Company’s financial position or
profitability.
If the Company concludes that the disclosures relative to contingent liabilities can be expected to prejudice seriously its position in a
dispute with other parties, the Company limits its disclosures to the nature of the dispute.

WTO
Although the Company is not a party, the Company is supporting the European Commission in litigation 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 in relation to alleged subsidies benefiting Airbus. On the same day, the EU launched a parallel WTO
case against the US in relation to its subsidies to Boeing.
Following a series of interim WTO decisions, in October 2019 the WTO authorised the US to impose US$ 7.5 billion in annual tariffs on
EU imports. The US imposed 15% tariffs on new aircraft and manufacturing parts imported into the US. Similarly, in October 2020, theWTO authorised the EU to impose tariffs on US$ 4 billion of US imports. The EU imposed 15% tariffs on new aircraft imported into the
EU. In June 2021, the EU, the UK and the US agreed a new cooperative framework pursuant to which the parties would exchange
information on government support to aviation and committed to suspending tariffs for five years. This agreement removes the threat oftariffs being re-imposed on Airbus aircraft and manufacturing parts in the foreseeable future.

21

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

Investigation by the UK SFO, France’s PNF, US Departments of State and Justice and Related
Commercial Litigation
The Company reached final agreements (“the agreements”) with the French Parquet National Financier (“PNF”), the UK Serious Fraud
Office (“SFO”), and the US Department of Justice (“DoJ”) resolving the authorities’ investigations into allegations of bribery and corruption,
as well as with the US Department of State (“DoS”) and the DoJ to resolve their investigations into inaccurate and misleading filings madewith the DoS pursuant to the US International Traffic in Arms Regulations (“ITAR”). The agreements were approved and made public on
31 January 2020.
Under the terms of the agreements, the Company agreed to pay penalties of € 3,597,766,766 plus interest and costs to the French, UK
and US authorities. This was recognised in the Company’s 2019 accounts. The settlements with each authority were as follows: PNF€ 2,083,137,455, the SFO € 983,974,311, the DoJ € 526,150,496 and the DoS € 9,009,008 of which € 4,504,504 may be used for approved
remedial compliance measures. All penalties have been paid, except for $ 1 million that remains to be paid to the DoS by 28 January2022.
Under the terms of the Convention judiciaire d’intérêt public (“CJIP”) with the PNF, the Company has an obligation to submit its complianceprogramme to targeted audits carried out by the Agence Française Anticorruption (“AFA”) over a period of three years.
Under the terms of the Deferred Prosecution Agreement (“DPA”) with the SFO, no independent compliance monitor will be imposed on
the Company in light of the continuing monitorship to be conducted by the AFA.
Under the terms of the DPA with the DoJ, no independent compliance monitor will be imposed on Airbus under the agreement with the
DoJ, but the Company will periodically report on its continuing compliance enhancement progress during the three year term of the DPA
and carry out further reviews as required by the DoJ.
The agreements result in the suspension of prosecution for a duration of three years whereupon the prosecutions will be extinguished if
the Company complies with their terms throughout the period.
Under the terms of the Consent Agreement with the DoS, the DoS has agreed to settle all civil violations of the ITAR outlined in the
Company’s voluntary disclosures identified in the Consent Agreement, and the Company has agreed to retain an independent export
control compliance officer, who will monitor the effectiveness of the Company’s export control systems and its compliance with the ITAR
for a duration of three years.
Any breach of the terms of the agreements by the Company could lead to rescission by the authorities of the terms of the agreements
and reopening of the prosecutions. Prosecution could result in the imposition of further monetary penalties or other sanctions including
additional tax liability and could have a material impact on the Financial Statements, business and operations of the Company.
In addition to any pending investigation in other jurisdictions, the factual disclosures made in the course of reaching the agreements may
result in the commencement of additional investigations in other jurisdictions. Such investigations could also result in (i) civil claims or
claims by shareholders against the Company, (ii) adverse consequences on the Company’s ability to obtain or continue financing for
current or future projects, (iii) limitations on the eligibility of group companies for certain public sector contracts, and/or (iv) damage to theCompany’s business or reputation via negative publicity adversely affecting the Company’s prospects in the commercial market place.
Airbus will continue to cooperate with the authorities in the future, pursuant to the agreements and to enhance its strong Ethics &Compliance culture within the Company.
Several consultants and other third parties have initiated commercial litigation and arbitration against the Company seeking relief. The
agreements reached with authorities may lead to additional commercial litigation and arbitration against the Company and tax liability inthe future, which could have a material impact on the Financial Statements, business and operations of the Company.

Securities Litigation
In August 2020, a putative class action lawsuit was filed in US federal court in the state of New Jersey against Airbus SE and membersof its current and former management. The lawsuit was brought on behalf of alleged shareholders that purchased or otherwise acquired
Airbus SE securities in the US between 24 February 2016 and 30 July 2020, and asserts violations of US securities laws. The complaint
alleges that defendants made false and misleading statements or omissions concerning, among other things, the Company’s agreements
approved on 31 January 2020 with the French PNF, the UK SFO, the US DoJ and the US DoS as well as the Company’s historic practices
regarding the use of third party business partners and anti-corruption compliance. The lawsuit seeks unquantified damages. The Company
believes it has solid grounds to defend itself against the allegations. The consequences of such litigation and the outcome of theproceedings cannot be fully assessed at this stage, but any judgement or decision unfavourable to the Company could have a material
adverse impact on the Financial Statements, business and operations of the Company.

22

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2021

Air France Flight 447 Trial
On 1 June 2009, an A330 operated by Air France flight AF447 from Rio de Janeiro to Paris disappeared over the Atlantic Ocean with 228
persons onboard. The wreckage was located in April 2011 after several search campaigns organised by the Bureau d'Enquêtes etd'Analyses (BEA), which published its final investigation report in July 2012. In the wake of the accident, the prosecutor in Paris opened
an investigation for involuntary manslaughter and Airbus SAS was charged in March 2011. In September 2019, the investigating
magistrates closed the investigation and dismissed all criminal charges after a thorough analysis of the technical and legal elements ofthe case. However, the Paris Court of Appeal overturned the magistrates' decision and ordered trial for involuntary manslaughter. The
company appealed to the French Supreme Court. A criminal trial in the Paris Criminal Court and any judgment or decision unfavourable
to the Company could result in damage to its business or reputation.

Other Investigations
The Company is cooperating fully with the authorities in a judicial investigation in France related to Kazakhstan. In this spirit, the Company
asked to be interviewed by the investigating magistrates and has been granted the status of “assisted witness” in the investigation.
In 2019, the Company self-reported to German authorities potentially improper advance receipt and communication of confidential
customer information by employees of Airbus Defence and Space GmbH. The information concerned relates to future German government
procurement projects. The self-disclosure by the Company followed an internal review with the support of an external law firm. Both theGerman Ministry of Defence and the Munich public prosecutor opened an investigation into the matter. The Company fully cooperated
with relevant authorities. The investigation could have an impact on Airbus Defence and Space GmbH’s and Airbus Secure Land
Communications GmbH’s ability to participate in future public procurement projects in Germany. Airbus Defence and Space GmbH expects
to receive a penalty notice this summer. The amount is not expected to have a material impact on the Financial Statements of theCompany.

Other Disputes
In the course of a commercial dispute, the Company received a statement of claim by the Republic of China (Taiwan) alleging liability forrefunding part of the purchase price of a large contract for the supply of missiles by subsidiary Matra Défense S.A.S., which the customer
claims it was not obliged to pay. An arbitral award was rendered on 12 January 2018 with a principal amount of € 104 million plus interest
and costs against Matra Défense S.A.S. Post-award proceedings have concluded, the amount of the award has been paid and the matter
is now closed.

25.

Number of Employees
Airbus73,65078,48730 June 2021
31 December 202026.

Events after the Reporting Date

There are no events after the reporting date.

23

Airbus Airbus Defence
Helicopters
and Space
19,97832,422
20,026
32,836

Consolidated
Airbus126,050
131,349

Independent auditor’s review report
To: the shareholders and the board of directors of Airbus SE
Our conclusion
We have reviewed the condensed interim IFRS consolidated financial information included in the accompanying first half-year 2021
financial report of Airbus SE, Amsterdam for the period
1 January 2021 to 30 June 2021.
Based on our review, nothing has come to our attention that causes us to believe that the condensed interim IFRS consolidated
financial information of Airbus SE for the period from 1 January 2021 to
30 June 2021, is not prepared, in all material respects, in accordance with IAS 34, “Interim Financial Reporting” as adopted by theEuropean Union.
The condensed interim IFRS consolidated financial information comprises:• The condensed Interim IFRS consolidated statement of financial position as of 30 June 2021
• The following condensed interim IFRS consolidated statements for the period from 1 January 2021
to 30 June 2021: the income statement, the statements of comprehensive income, cash flows and changes in equity• The notes comprising of a summary of the significant accounting policies and selected explanatory information
Basis for our conclusion
We conducted our review in accordance with Dutch law including, Dutch Standard 2410, “Het beoordelen van tussentijdse financiële
informatie door de accountant van de entiteit” (Review of Interim Financial Information Performed by the Independent Auditor of
the Entity). A review of interim financial information in accordance with the Dutch Standard 2410 is a limited assurance
engagement.
Our responsibilities under this standard are further described in the Our responsibilities for the review of the condensed interim
IFRS consolidated financial information section of our report.
We are independent of Airbus SE in accordance with the Verordening inzake de onafhankelijkheid van accountants bij assuranceopdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant
independence regulations in the Netherlands. Furthermore, we have complied with the Verordening gedrags- en beroepsregels
accountants(VGBA, Dutch Code of Ethics).
We believe the assurance evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Responsibilities of the board of directors for the condensed interim IFRS consolidated financial information
The board of directors is responsible for the preparation and presentation of the condensed interim IFRS consolidated financial
information in accordance with IAS 34, “Interim Financial Reporting” as adopted by the European Union. Furthermore, the board of
directors is responsible for such internal control as it determines is necessary to enable the preparation of the condensed interim
IFRS consolidated financial information that is free from material misstatement, whether due to fraud or error.

Page 2

Our responsibilities for the review of the condensed interim IFRS consolidated financial information
Our responsibility is to plan and perform the review in a manner that allows us to obtain sufficient and appropriate assurance
evidence for our conclusion.
The level of assurance obtained in a review engagement is substantially less than the level of assurance obtained in an audit
conducted in accordance with the Dutch Standards on Auditing. Accordingly, we do not express an audit opinion.
We have exercised professional judgment and have maintained professional skepticism throughout the review, in accordance with
Dutch Standard 2410. Our review included among others:• Updating our understanding of the company and its environment, including its internal control,
and the applicable financial reporting framework, in order to identify areas in the condensed interim IFRS consolidated financial
information where material misstatements are likely to arise due to fraud or error, designing and performing analytical andother review procedures to address those areas,
and obtaining assurance evidence that is sufficient and appropriate to provide a basis for our conclusion• Obtaining an understanding of internal control as it relates to the preparation of interim financial information• Making inquiries of management and others within the company• Applying analytical procedures with respect to information included in the condensed interim IFRS consolidated financial
information• Obtaining assurance evidence that the condensed interim IFRS consolidated financial information agrees with, or reconciles to,the company’s underlying accounting records• Evaluating the assurance evidence obtained• Considering whether there have been any changes in accounting principles or in the methods of applying them and whether
any new transactions have necessitated the application of a new accounting principle• Considering whether management has identified all events that may require adjustment to or disclosure in the condensed
interim IFRS consolidated financial information• Considering whether the condensed interim IFRS consolidated financial information has been prepared in accordance with theapplicable financial reporting framework and represents the underlying transactions free from material misstatement

Amsterdam, 28 July 2021

Ernst & Young Accountants LLP

signed by N.M. Pul