Airbus SE
Unaudited Condensed
IFRS Consolidated Financial Information
for the year ended 31 December 2019

Contents
1 Airbus SE Unaudited Condensed IFRS Consolidated Financial Statements...................................................................................2
Unaudited Condensed IFRS Consolidated Income Statement ..........................................................................................................2
Unaudited Condensed IFRS Consolidated Statement of Comprehensive Income .............................................................................3
Unaudited Condensed IFRS Consolidated Statement of Financial Position ......................................................................................4
Unaudited Condensed IFRS Consolidated Statement of Cash Flows ................................................................................................6
Unaudited Condensed IFRS Consolidated Statement of Changes in Equity......................................................................................82 Notes to the Airbus SE Unaudited Condensed IFRS Consolidated Financial Statements .............................................................91.

The Company .......................................................................................................................................................................92.

Accounting Policies ...............................................................................................................................................................93.

Acquisitions and Disposals.................................................................................................................................................. 11

4.

Related Party Transactions ................................................................................................................................................. 12

5.

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

6.

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

7.

Administrative Expenses ..................................................................................................................................................... 15

8.

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

9.

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

10.

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

11.

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

12.

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

13.

Earnings per Share ............................................................................................................................................................. 15

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 ......................................................................................................................................................................... 1922.

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

23.

Litigation and Claims ........................................................................................................................................................... 20

24.

Number of Employees......................................................................................................................................................... 22

25.

Events after the Reporting Date .......................................................................................................................................... 22

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 20191
Airbus SE
Unaudited Condensed
IFRS Consolidated Financial Statements
Unaudited Condensed
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 under the equity method
Other income from investments
Profit before financial result and income taxes
Interest income
Interest expense
Other financial result
Total financial result
Income taxes(Loss) Profit for the period

Note
6
6
7
8
10
10
9
9

11
12

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

13
13

2019
70,478(59,973)
10,505(908)(5,217)(3,358)
370
(356)
299
4
1,339
228
(339)
(164)
(275)
(2,389)(1,325)

2018
63,707(54,920)
8,787
(861)
(1,574)(3,217)
1,656
(182)
330
109
5,048
208
(440)
(531)
(763)
(1,274)
3,011(1,362)
37

3,054
(43)

€
(1.75)(1.75)

€
3.94
3.92

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

2

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019

Unaudited Condensed
IFRS Consolidated Statement of Comprehensive Income
2019(1,325)

2018
3,011

Items that will not be reclassified to profit or loss:
Remeasurement of the defined benefit pension plans
Change in fair value of financial assets
Share of change from investments accounted for under the equity method
Income tax relating to items that will not be reclassified(2,669)
267
(130)
410

(552)
(249)
3
(2)

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 under the equity method
Income tax relating to items that may be reclassified
Other comprehensive income, net of tax
Total comprehensive income for the period

54(1,434)136
3342(3,021)(4,346)108(2,959)
(80)
(11)
728
(3,014)(3)

Attributable to:Equity owners of the parent
Non-controlling interests(4,364)
18

72
(75)

Note

(In € million)(Loss) Profit for the period
Other comprehensive income

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

3

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019

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

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

Note

2019

2018

14
14

16,591
17,294
2
1,626
4,453
91
1,033
522
5,008
11,066
57,686

16,726
16,773
3
1,693
3,811
65
1,108
888
4,835
10,66256,56431,550
5,674
449
1,167
2,060
2,423
1,784
2,302
9,314
56,723
0
114,409

31,891
6,078
489
789
1,811
4,246
1,451
2,132
9,413
58,300334
115,198

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

17
16
19
20
22
22
3

4

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019(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

2019

2018

21

784
3,555
2,241
(523)
(82)
5,975
15
5,990

777
2,941
5,923
134
(51)
9,724
(5)
9,719

12,542
8,189
16,980
7,498
384
398
54
46,045

11,571
7,463
15,832
8,009
460
1,318
40
44,693

6,372
1,959
14,80826,426
2,647
6,817
2,780
565
62,374
0
108,419
114,409

7,317
1,463
16,237
26,229
2,462
5,288
732
626
60,354432
105,479
115,198

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

3

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

5

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019

Unaudited Condensed
IFRS Consolidated Statement of Cash Flows
2019

2018

Operating activities:(Loss) Profit for the period attributable to equity owners of the parent (Net income)(Loss) Profit for the period attributable to non-controlling interests(1,362)
37

3,054
(43)

Adjustments to reconcile profit for the period to cash provided by operating activities:
Interest income
Interest expense
Interest received
Interest paid
Income tax expense
Income tax paid
Depreciation and amortization
Valuation adjustments
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:
Inventories
Trade receivables
Contract assets and liabilities
Trade liabilities
Other assets and liabilities and others
Cash provided by operating activities (1)

(228)
339
151
(187)
2,389
(1,476)
2,927
600
(77)
(299)
475
(1,752)
2,216
117
29
1,297
(1,625)
2,398
3,753

(208)
440
186
(292)
1,274
(897)
2,444
(1,849)
(261)
(330)
1,952
(2,519)
(633)
(671)
(881)
(684)
2,294
(691)
2,318

(2,340)(2,285)

112

213

8

129

(952)

(707)

358
210

597
191

137
(2,861)
2,464(2,864)320(2,010)1,917(1,635)Note(In € million)

Investing activities:
Purchases of intangible assets, property, plant and equipment, investment property
Proceeds from disposals of intangible assets, property, plant and equipment andinvestment property
Acquisitions of subsidiaries, joint ventures, businesses and non-controlling interests(net of cash)
Payments for investments accounted for under the equity method, other investments
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
Disposals of non-current assets and disposal groups classified as assets held for saleand liabilities directly associatedPayments for investments in securities
Proceeds from disposals of securities
Cash (used for) investing activities

6

3

3

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019

Note

(In € million)

Financing activities:
Increase in financing liabilities
Repayment of financing liabilities
Cash distribution to Airbus SE shareholders
Dividends paid to non-controlling interests
Payments for liability for puttable instruments
Changes in capital and non-controlling interests
Change in treasury shares
Cash (used for) financing activities
Effect of foreign exchange rate changes on cash and cash equivalents
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
thereof presented as cash and cash equivalents
thereof presented as part of disposal groups classified as held for sale
(1)

21

21

22
22
3

2019

2018

402
(562)
(1,280)
0
319
194
(31)
(958)
(45)
(114)
9,428
9,314
9,314
0

103
(2,411)(1,161)
0
179
117
(49)
(3,222)(54)(2,593)
12,021
9,428
9,413
15

In 2018, cash provided by operating activities has been positively impacted by certain agreements reached with the Company’s suppliers and customers
relating to the settlement of claims and negotiation on payment terms. Such measures do not have a material impact in 2019.

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

7

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019

Unaudited Condensed
IFRS Consolidated Statement of Changes in Equity(In € million)

Balance at
1 January 2018
Profit for the period
Other comprehensive
incomeTotal comprehensive
income for the period
Capital increase
Share-based payment(IFRS 2)
Cash distribution to
Airbus SE shareholders /Dividends paid to noncontrolling interests
Equity transaction(IAS 27)
Change in treasury
sharesBalance at
31 December 2018
Restatements (1)Balance at 1 January
2019, restated (1)(Loss) Profit for theperiodOther comprehensive
incomeTotal comprehensive
income for the period
Capital increase
Share-based payment(IFRS 2)
Cash distribution to
Airbus SE shareholders /Dividends paid to noncontrolling interests
Equity transaction(IAS 27)
Change in treasury
sharesBalance at
31 December 2019(1)

Equity attributable to equity holders of the parent
Accumulated othercomprehensive income
Foreign
Financial
Cashcurrency
CapitalShare
Retained assets atflow translation Treasury
stock premium
earnings fair value hedges adjustments
shares

Noncontrolling
Total interests

Total
equity

775
0

2,826
0

4,586
3,054

772
0

776
0

999
0

(2) 10,732
0 3,054

2 10,734(43) 3,011

0

0

(569)

(280) (2,249)

116

0 (2,982)(32) (3,014)

0
2

0
115

2,485
0

(280) (2,249)
0
0

116
0

0
0

72
117

(75)
0

(3)
117

0

0

62

0

0

0

0

62

0

62

0

0

(1,161)0000 (1,161)

0 (1,161)

0

0

(49)

0

0

0

0

(49)

68

19

0

0

0

0

0

0

(49)

(49)

0

(49)

777
0

2,941
0

5,923
(122)

492 (1,473)
0
0

1,115
0

(51)
0

9,724
(122)

(5)
0

9,719
(122)

777

2,941

5,801

492 (1,473)

1,115

(51)

9,602

(5)

9,597

0

0

(1,362)

0

0

0
7

0

0

0

0 (1,362)

37 (1,325)(2,345)327 (1,048)64

0 (3,002)(19) (3,021)

0
614(3,707)0327 (1,048)
0
0

64
0

0 (4,364)0621

18 (4,346)
0
621

0

0

76

0

0

0

0

0

0

0

(1,280)0000 (1,280)

0 (1,280)

0

0

1,351

0

0

0

0

1,351

2

1,353

0

0

0

0

0

0

(31)

(31)

0

(31)

784

3,555

2,241

819 (2,521)

1,179

(82)

5,975

15

5,990

76

Opening balance figures are restated due to the application of IFRIC 23.

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

876

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 20192
Notes to the Airbus SE
Unaudited Condensed
IFRS Consolidated Financial Statements
1.

The Company

The accompanying Unaudited Condensed IFRS Consolidated Financial Statements present the financial position and the results ofoperations 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 reportablesegments are Airbus, Airbus Helicopters and Airbus Defence and Space (see “– Note 5: Segment Information”). The Company is listedon the European stock exchanges in Paris, Frankfurt am Main, Madrid, Barcelona, Valencia and Bilbao. The Unaudited Condensed IFRS
Consolidated Financial Statements were authorised for issue by the Company’s Board of Directors on 12 February 2020.

2.

Accounting Policies

The Unaudited Condensed Consolidated Financial Statements are prepared in accordance with International Financial ReportingStandards (“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.
On 1 January 2019, the Company has implemented the new standard IFRS 16 “Leases” and the new interpretation IFRIC 23 ”Uncertainty
over Income Tax Treatments“. As a result, the Company has changed its accounting policy for leases accounting and for classificationand measurement of certain liabilities linked to uncertainty over income tax as detailed below.
The implementation of other amendments has no material impact on the Unaudited Condensed IFRS Consolidated Financial Statements
as of 31 December 2019.

IFRS 16 “Leases”
In May 2016, the IASB published the new standard IFRS 16, which replaces the previous guidance on leases, including IAS 17 “Leases”,
IFRIC 4 “Determining Whether an Arrangement Contains a Lease”, SIC-15 “Operating Leases—Incentives”, and SIC-27 “Evaluating theSubstance of Transactions Involving the Legal Form of a Lease”. IFRS 16 introduces a uniform lessee accounting model. Applying thatmodel, a lessee is required to recognise a right-of-use asset representing the lessee’s right to use the underlying asset and a financial
liability representing the lessee’s obligation to make future lease payments.
There are exemptions for short-term leases and leases of low-value assets. Lessor accounting remains comparable to that provided by
the previous leases standards (IAS 17) and hence lessors will continue to classify their leases as operating leases or finance leases.
The Company adopted the new standard IFRS 16 on 1 January 2019 using the modified retrospective method and therefore the cumulative
effect of adopting IFRS 16 has been recognised as an adjustment to the opening balance of retained earnings which is nil at 1 January
2019, with no restatement of comparative information.
Identifying a lease
Under IFRS 16, the Company assesses whether a contract is or contains a lease based on the definition of a lease. A contract is, or
contains a lease if the contract conveys the right to control the use of an identified asset for a specified period of time in exchange forconsideration.
On transition to IFRS 16, the Company elected to apply the practical expedient according to which it is not required to reassess whether
a contract is, or contains, a lease. The previous determination pursuant to IAS 17 and IFRIC 4 of whether a contract is, or contains, alease is thus maintained for existing contracts.
The Company as a lessee
As a lessee, the Company previously classified leases as operating or finance leases based on assessment of whether the risks andrewards incidental to ownership of the underlying asset were transferred. Under IFRS 16, the Company recognises right-of-use assets
and lease liabilities for most of its leases. Leases which were classified as operating leases under IAS 17 are now recognised on thebalance sheet.
9

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019

When applying IFRS 16 for the first time, the Company has used the following practical expedients for leases previously classified as
operating leases under IAS 17:-

to apply a single discount rate to a portfolio of leases with reasonably similar characteristics;-

to generally measure the right of use relating to the leased asset at the amount of the lease liability, using the discount rate at 1
January 2019. Where accrued lease liabilities existed, the right-of-use asset has been adjusted by the amount of the accrued leaseliability under IFRS 16. At initial application of IFRS 16, the measurement of the right-of-use does not include initial direct costs. In
some cases, the value of right-of-use assets may differ from the value of the liabilities due to offsetting against existing provisions or
as a result of valuation allowances; and-not to apply the new recognition requirements to short-term leases and to leases of low value assets as soon as the new standard iseffective.

The Company’s operating leases mainly relate to real estate assets, company cars and equipment. The most significant impact identified
by the Company relates to its operating leases of real estate assets (such as land, warehouses, storage facilities and offices).
For leases that were classified as finance leases under IAS 17, the Company did not change the carrying amount of the right-of-use asset
and the lease liability as of 31 December 2018, measured under IAS 17.
The Company as a lessor
The Company is not required to make any adjustments on transition to IFRS 16 for leases in which it acts as a lessor as IFRS 16 compared
to previous leases standards does not trigger any change from previous accounting treatment.
Impacts on financial statements
The Company has presented right-of-use assets within “Property, plant and equipment” and lease liabilities within “Financing liabilities”
and classified the principal portion of lease payments within financing activities and the interest portion within operating activities. Whenmeasuring lease liabilities, the Company discounts lease payments using its incremental borrowing rate at 1 January 2019. The weightedaverage rate applied is 1.23%. At 1 January 2019, the impact of renewal options that are reasonably certain to be exercised has beenassessed as not significant for the Company.
(In € million)
Operating lease commitment at 31 December 2018 as disclosed in the
Company’s consolidated financial statements

1 January 2019
1,494

Short-term and low-value leases recognised on a straight-line basis as expenses(29)

Discounted effect using the incremental borrowing rate at 1 January 2019(113)

Finance lease liabilities recognised as at 31 December 2018

330
1,682

Lease liabilities recognised at 1 January 2019

IFRIC 23 “Uncertainty over Income Tax Treatments”
In 2017, the IASB issued IFRIC 23 “Uncertainty over Income Tax Treatments”. The interpretation clarifies the recognition andmeasurement requirements when there is uncertainty over income tax treatments. In assessing the uncertainty, an entity shall consider
whether it is probable that a taxation authority will accept the uncertain tax treatment.
The Company adopted the interpretation on 1 January 2019 and has elected to apply the limited exemption in IFRIC 23 relating to transition
for classification and measurement, and accordingly has not restated comparative periods in the year of initial application. As aconsequence, any adjustments to the carrying amounts of tax liabilities are recognised at the beginning of the reporting period, with thedifference recognised in opening equity. The impact is € 122 million as at transition date.
In addition, the uncertain tax liabilities formerly included under provisions have been reclassified to current income tax liabilities for € 326
million.

IFRS 9, IAS 39 and IFRS 7 “Interest Rate Benchmark Reform”
Following the financial crisis, the reform and replacement of benchmark interest rates such as interbank offered rates (“IBORs”) has
become a priority for global regulators. There is currently uncertainty around the timing and precise nature of these changes.
The Company has elected to early adopt the “Amendment to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform” issued in
September 2019 by the IASB. The amendment provides temporary relief from applying specific accounting requirements to hedging
relationships directly affected by IBOR reform. The reliefs have the effect that IBOR reform should not cause hedge accounting toterminate. The Company has mainly hedged its debts in bonds and loans with interest rate swaps based on Euribor and US-Libor. In
assessing whether the hedges are expected to be highly effective on a forward-looking basis, the Company has therefore assumed that
Euribor and US-Libor interest rates are not altered by IBOR reform and has not discontinue the hedges.

10Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019

Use of Estimates and Judgements
In preparing the Unaudited Condensed IFRS Consolidated Financial Statements, management makes assumptions and estimates. Theseestimates are revised if the underlying circumstances have evolved or in light of new information. The underlying assumptions used forthe main estimates are similar to those described in the Company’s IFRS Consolidated Financial Statements as of 31 December 2018.
The exception is estimates used to perform employee benefits valuation (see “– Note 18: Provisions”).

3.

Acquisitions and Disposals

Acquisitions
In March 2019, the Company became party to a Debt Financing facility under a Note Purchase Agreements with OneWeb
Communications for an amount of $ 200 million. The new financing was funded in three equal tranches and has been fully drawn during
2019. Based on the latest developments, a re-assessment of the OneWeb financial assets was performed in December 2019 leading to
a decrease in the fair value of the equity investment by € 45 million recorded through OCI, and a depreciation of a loan by € 31 million
recorded through financial result. The Company will continue to assess the recoverability of the One-Web investment.
On 16 October 2017, Airbus, Bombardier Inc. (“Bombardier”) and Investissement Québec (“IQ”) signed an agreement that brings together
Airbus’ global reach and scale with Bombardier’s newest, state-of-the-art jet aircraft family. Under the agreement, Airbus provides
procurement, sales and marketing, and customer support expertise to the C Series Aircraft Limited Partnership (“CSALP”), newly
named Airbus Canada Limited Partnership (“ACLP”), the entity that manufactures and sells the A220. The partnership brings together
two complementary product lines. On 8 June 2018, having received all required regulatory approvals, Airbus, Bombardier and IQ closed
the C Series transaction effective on 1 July 2018.
On 1 July 2018, Airbus has obtained control of ACLP when it acquired 50.01% Class A ownership units in ACLP. Bombardier and IQ
owned at this date 33.55% and 16.44%, respectively. Airbus has consolidated ACLP using the full integration method effective from 1 July
2018. At closing, Airbus paid US$ 1 per share to assume a net liability. Technology and inventories are the main assets acquired. Airbus
has assumed the liabilities of ACLP which are mainly related to customer contracts in the backlog, trade payables, advance payments
received and refundable advance liabilities. The functional currency of ACLP is the US dollar.
Bombardier continues with its current funding plan of ACLP and funded the second half of 2018 and 2019 cash shortfalls of ACLP for a
total amount of $ 575 million. Bombardier has further agreed to continue to fund any cash shortfall up to a maximum aggregate amountof $ 350 million over 2020 and 2021. Bombardier funding is performed in consideration for non-voting participating Class B common units
in ACLP. Airbus has the choice to reimburse Bombardier’s funding for the lower of the nominal amount plus a yearly 2% interest or an
amount equal to the fair value of the shares of ACLP at the purchase date of Class A ownership units.
As at 31 December 2019, the shareholding structure is the following:
Shareholder

Voting rights

Non-voting right

Total in %Class A common units in %Class B common units in %Airbus50.26 %

0%46.02 %

Bombardier

33.72 %

100 %39.31 %

IQ

16.02 %

0%14.67 %

Airbus benefits from a call right in respect of all of Bombardier’s interests in ACLP at fair market value, with the amount for Class B shares
subscribed by Bombardier capped at the invested amount plus accrued interests if any, exercisable no earlier than 7.5 years following theclosing, except in the event of certain changes in the control of Bombardier, in which case the right is accelerated. Airbus also benefits
from a call right in respect of all IQ’s interests in ACLP at fair market value no earlier than 4.5 years following the closing.
Bombardier benefits from a corresponding put right whereby it could require Airbus to acquire its interest at fair market value after the
expiry of the same period. IQ will also benefit from tag along rights in connection with a sale by Bombardier of its interests in thepartnership.
Airbus used the full goodwill approach to account for this transaction. Bombardier’s and IQ’s interests in ACLP are measured at theirestimated fair value. The fair value measurement of the assets acquired and liabilities assumed has been performed by an independent
expert. According to IFRS 3, the fair values of acquired assets and assumed liabilities have been determined excluding Airbus specificsynergies (mainly with respect to volumes sold and manufacturing costs).
The transaction has been approved by the Boards of Directors of both Airbus and Bombardier, as well as the Cabinet of the Governmentof Québec. The partnership’s head office, primary assembly line and related functions are based in Mirabel, Québec (Canada).
The opening balance sheet of ACLP has not been adjusted in 2019 and has been completed on 1 July 2019 in accordance with IFRS 3“Business Combinations” after the one year period.
The following table summarises the final allocation of the purchase price to the acquired assets and the assumed liabilities at theacquisition date:11

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019(In € million)

Intangible assets (1)Property, plant and equipment
Deferred tax assets
Inventories (2)Trade receivables
Other financial assets
Other assets
Cash and cash equivalents
Total assets acquired
Provisions / Acquired customer contracts (3)Deferred tax liabilities
Trade liabilities
Contract liabilities
Other financial liabilities
Other liabilities
Total liabilities assumed
Net assets assumed
Non-controlling interests (at fair value, i.e. including synergies provided by the acquirer) (4)Consideration transferred (5)Goodwill arising on acquisition (6)
(1)

(2)
(3)

(4)

(5)

(6)

Total
1,377
252
86
660
8
350
93
129
2,955
2,609
77
270
685
827
356
4,824
1,870
2,246
(225)
3,891

Intangible assets: Mainly include the acquired technology for the A220 programme. The fair value of the programme was measured using the“multi-excess earnings method” and is equal to the present value of the after-tax cash flows attributable to future deliveries excluding existing contracts
in the backlog which are valued separately. The technology will be amortised over the expected number of aircraft to be delivered over the programme
useful life.
Inventories: The fair value of the inventories has been measured considering net contractual selling prices.
Acquired customer contracts: This represents the present value of the excess of expected fulfilment costs over contractual selling prices for all acquired
customer contracts in the backlog. Estimated fulfilment costs include both direct costs that will be recognised in gross margin and contributory asset
charges to reflect the return required on other assets that contribute to the generation of the forecasted cash flows. This liability will be released as a
reduction in cost of sales based on the delivered aircraft considered in the measurement of the liability.
Non-controlling interests: Airbus has recognised a financial liability at fair value for the estimated exercise price of the written put options on
non-controlling interests (Bombardier put option and IQ tag along). According to the accounting policy of the Company, changes in the fair value of theliability are recognised directly in equity.
Consideration transferred: Airbus paid US$ 1 per share (754 shares) to acquire 50.01% of ACLP and received 100,000,000 warrants which are each
entitled to one Class B Bombardier common share at a strike price equal to the US equivalent of Can$ 2.29. The fair value amounted to US$ 263
million as at 1 July 2018. As a result, the consideration transferred is negative.
Goodwill: The goodwill mostly represents Airbus specific synergies expected from the acquisition, which have been excluded from the fair value
measurement of the identifiable net assets. These synergies mainly relate to higher expected volumes of aircraft sold and lower manufacturing costs.
ACLP is part of the cash generating unit (“CGU”) Airbus and is tested for impairment on an annual basis. The opening balance sheet after purchaseprice allocation of ACLP has been audited as at 1 July 2018.

Disposals
On 23 December 2019, the Company finalised the sale of PFW Aerospace GmbH to Hutchinson Holding GmbH. Since 2011, Airbus held
74.9 % in PFW Aerospace GmbH, a key supplier in the aerospace industry, while Safeguard held the remaining 25.1%. Airbus received
a consideration of € 103 million and recognised a gain of € 57 million, reported in other income. Assets and liabilities of the disposedcompany were previously classified as held for sale.
On 29 March 2019, the Company confirmed the agreement to sell its shares in Alestis Aerospace S.L. to Aciturri Aeronáutica S.L., acompany headquartered in Miranda de Ebro, Spain. The closing of the transaction occurred on 30 July 2019. The Company recogniseda gain for an amount of € 45 million in Airbus. Assets and liabilities of the disposed company were previously classified as held for sale.
On 1 October 2018, the Company completed the disposal of its subsidiary Compañía Española de Sistemas Aeronáuticos, S.A.
(“CESA”) to Héroux-Devtek Inc. (“Héroux-Devtek”), for a purchase price of € 114 million.
On 7 March 2018, the Company finalised the sale of Plant Holdings, Inc., held by the Airbus DS Communications Inc. business,to Motorola Solutions after receiving the required regulatory approvals. Airbus Defence and Space recognised a gain of € 159 million,
reported in other income.
Assets and Disposal Groups Classified as Held for Sale
As of 31 December 2019, the Company accounted for assets and disposal group of assets classified as held for sale in the amountof € 0 million (2018: € 334 million) and for disposal group of liabilities classified as held for sale in the amount of € 0 million (2018:€ 432 million), following the disposals of PFW Aerospace GmbH and Alestis Aerospace S.L.

4.

Related Party Transactions

The Company has entered into various transactions with related entities; carried out in the normal course of business.
12

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019

5.

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.

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. Other activities not allocable to the reportable segments, together with consolidation effects, are disclosed
in the column “Transversal/Eliminations”.
The Company uses EBIT as a key indicator of its economic performance.
Business segment information for the year ended 31 December 2019 is as follows:(In € million)

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

Airbus54,775(696)
54,079AirbusHelicopters
6,007
(429)
5,578

AirbusDefenceand Space
10,907(86)
10,821

50,577
21
3,481

2,924
278
2,376

3,457
3,942
3,422

0
0
0

56,958
4,241
9,279

2,205
(2,405)

414
(291)

(881)
(302)

(399)
(360)

1,339
(3,358)(111)(164)(2,389)(1,325)

Airbus47,970(771)
47,199AirbusHelicopters
5,934
(411)
5,523

AirbusDefence andSpace
11,063(78)
10,98544,175
23
3,001

2,917
362
2,244

3,080
4,579
3,326

0
0
0

50,172
4,964
8,571

4,295
(2,214)

366
(315)

676
(328)

(289)
(360)

5,048
(3,217)(232)(531)(1,274)
3,011

Transversal / Consolidated
AirbusEliminations
0
71,6890(1,211)070,478Business segment information for the year ended 31 December 2018 is as follows:(In € million)

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

13

Transversal / Consolidated
AirbusEliminations
0
64,9670(1,260)063,707

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 20196.

Revenue and Gross Margin

Revenue increased by € +6,771 million to € 70,478 million (2018: € 63,707 million), mostly at Airbus (€ +6,880 million) driven by higherdeliveries of 863 aircraft (in 2018: 800 aircraft), and a favourable foreign exchange impact.
Revenue by geographical areas based on the location of the customer is as follows:

2019
22,625
22,591
12,036
7,053
1,851
4,322
70,478(In € million)

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

2018
23,297
17,78011,144
6,379
1,437
3,670
63,707

The gross margin increased by € +1,718 million to € 10,505 million compared to € 8,787 million in 2018, mainly driven by higher deliveries,
favourable mix and improved performance at Airbus, partly offset by Airbus Defence and Space performance and provisions recognisedon the A400M programme. The gross margin rate increased from 13.8% to 14.9%.
In 2019, Airbus has delivered 112 A350 XWB aircraft. New order intakes, cancellations, delivery postponements and other contractual
agreements to the end of December 2019 have been reflected in the financial statements.
Risks continue to be closely monitored in line with the schedule, aircraft performance and overall cost envelope, as per customer
commitments. Despite the progress made, challenges remain with recurring cost convergence.
As of 31 December 2018, the Company’s largest A380 operator reviewed its aircraft fleet strategy going forward and concluded it is forced
to restructure and reduce its A380 order by 39 aircraft. The Company entered into discussions with the customer in late 2018 which finallyresulted in the signature of a head of agreement on 11 February 2019. Without this customer’s A380 order, the Company has no
substantial order backlog and no basis to sustain A380 production, despite all sales and marketing efforts in recent years. As aconsequence of this decision, deliveries of the A380 will cease in 2022.
At year-end 2018, in view of the above, the Company reassessed accordingly the expected market assumptions and the recoverability
and depreciation method of specific assets allocated to the A380 programme. As a result, the Company impaired specific A380 assets inthe amount of € 167 million, recognised an onerous contract provision for an amount of € 1,257 million and updated the measurement ofrefundable advances including interest accretion for a total amount of € 1,426 million. As a consequence, the recognition of the onerous
contract provision as well as other specific provisions and the remeasurement of the liabilities affected the consolidated income statement
before taxes by a net € 463 million in EBIT and positively impacted the other financial result by € 177 million as of 31 December 2018.
In 2019, the Company recorded an additional net charge of € 99 million in EBIT as part of its continuous assessment of assets
recoverability and quarterly review of onerous contract provision assumptions.
As of 31 December 2019, the Company has delivered a total of 88 A400M aircraft including 14 in 2019.
On 13 June 2019, the Company concluded together with OCCAR and the Nations the negotiations on a global re-baselining of the
programme. A contract amendment has been signed by all parties, providing a revised aircraft delivery schedule, an updated technicalcapability roadmap and a revised retrofit schedule.
The Company continued with development activities toward achieving the revised capability roadmap. Important certification milestones
have been achieved in 2019, in particular on critical Paratrooper Simultaneous Dispatch and Helicopter Air to Air refuelling capabilities.
Technical modifications corresponding to NSOC2 contractual standard have been certified and qualified. However NSOC2 TypeAcceptance initially planned in 2019 is still pending due to on-going discussions on some operational limitations.
Retrofit activities are progressing in line with the customer agreed plan.
In the fourth quarter 2019, an update of the contract estimate at completion has been performed and an additional charge of € 1,212
million has been recorded. This reflects mainly the updated estimates on the export scenario during the launch contract phase based ofa revision of the market perspectives taking into account the current environment, including the suspension of the export licenses by theGerman Government and its consequences on potential prospects. It reflects as well some cost increases in particular for retrofit and an
updated view on applicable escalation.
Risks remain on development of technical capabilities and the associated costs, on aircraft operational reliability in particular with regard
to powerplant, on cost reductions and on securing export orders in time as per the revised baseline.
Due to the repeatedly prolonged suspension of defence export licences to Saudi Arabia by the German Government, andthe consequential inability of the Company to execute a customer contract, a revised Estimate at Completion (EAC) was performed. As
a result a € 221 million impairment charge mainly on inventories on top of a € 112 million financial expense related to hedge ineffectiveness,have been recognised as of 30 September 2019. The Company is engaging with its customer to agree a way forward on this contract. The
outcome of these negotiations is presently unclear but could result in significant further financial impacts.

14

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 20197.

Administrative Expenses

Administrative expenses increased by € +3,643 million to € 5,217 million (2018: € 1,574 million), mainly due to the final agreements
reached with the French Parquet National Financier (PNF), the U.K. Serious Fraud Office (SFO) and the U.S. Department of State (DoS).
For further information, see “– Note 23: Litigation and Claims".

8.

Research and Development Expenses

Research and development expenses increased by € +141 million to € 3,358 million compared to € 3,217 million in 2018, primarilyreflecting research and development activities on the A320 and A350 programmes. In addition, an amount of € 133 million of development
costs has been capitalised, mainly related to Airbus programmes.

9.

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 decreased by € -136 million to € 303
million compared to € 439 million in 2018.

10.

Other Income and Other Expenses

Other income decreased by € -1,286 million to € 370 million compared to € 1,656 million in 2018. This decrease is mainly related to the
exceptional release of liabilities on the A380 programme in 2018, partly compensated by the capital gains from the sale of PFW Aerospace
GmbH and Alestis Aerospace S.L in 2019. For more details, see “– Note 3: Acquisitions and Disposals”.
Other expenses increased by € +174 million to € -356 million compared to € -182 million in 2018.

11.

Total Financial Result

Total financial result improved by € +488 million to € -275 million compared to € -763 million in 2018. This is mainly due to the positive
impact from foreign exchange valuation of monetary items for an amount of € 169 million and the revaluation from financial instrumentsof € 408 million. The financial result includes the financial expense of € 112 million on hedge ineffectiveness (see “– Note 6: Revenue and
Gross Margin”).

12.

Income Taxes

The income tax expense amounts to € -2,389 million in 2019 (2018: € -1,274 million). The high effective tax rate in 2019 is mainly driven
by the non-deductibility of the penalties accounted for in the 2019 accounts (see “– Note 23: Litigation and claims”). It also comprises
deferred tax impairments and tax risk updates partially offset by the sales of PFW Aerospace GmbH and Alestis Aerospace S.L. at a
reduced tax rate (see “– Note 3: Acquisitions and Disposals”).
In 2018, the effective tax rate was mainly impacted by non-realised tax losses in the period leading to additional deferred tax asset
impairment. This was partially offset by the tax-free sale of Plant Holdings Inc. (see “– Note 3: Acquisitions and Disposals”).

13.

Earnings per Share(Loss) Profit for the period attributable to equity owners of the parent (Netincome)Weighted average number of ordinary shares
Basic earnings per share

2019

2018

€ (1,362) million
777,039,858€ (1.75)€ 3,054 million
775,167,941€ 3.94

Diluted earnings per share – The Company’s categories of dilutive potential ordinary shares are share-settled Performance Units relating
to Long-Term Incentive Plans (“LTIP”) and the convertible bond issued on 1 July 2015.
As there is a loss in 2019, the effect of potentially dilutive ordinary shares is anti-dilutive.

15

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019

During 2018, the average price of the Company’s shares exceeded the exercise price of the share-settled Performance Units and therefore
752,107 shares were considered in the calculation of diluted earnings per share. The dilutive effect of the convertible bond was also
considered in the calculation of diluted earnings per share in 2018, by adding back € 7 million of interest expense to the profit for theperiod attributable to equity owners of the parent and by including 5,022,990 of dilutive potential ordinary shares.
As at 30 December 2019, the convertible bond has been converted into 5,020,942 newly issued shares (see “– Note 21: Total Equity”).

(Loss) Profit 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.

2019

2018

€ (1,362) million
777,039,858€ (1.75)€ 3,061 million
780,943,038€ 3.92

In 2018, dilution assumes conversion of all potential ordinary shares.

Intangible Assets and Property, Plant and Equipment

Intangible assets decreased by € -135 million to € 16,591 million (2018: € 16,726 million). Intangible assets mainly relate to goodwill of€ 13,019 million (2018: € 13,039 million). The decrease is primarily due to the disposal of PFW Aerospace GmbH (see “– Note 3:“Acquisitions and Disposals”).
The annual impairment tests performed in 2019 led to no impairment charge.
Property, plant and equipment increased by € +521 million to € 17,294 million (2018: € 16,773 million), mainly due to the application of
IFRS 16 offset by depreciation in the period. Property, plant and equipment include right-of-use assets for an amount of € 1,543 million
as of 31 December 2019.

15.

Investments Accounted for under the Equity Method

Investments accounted for under the equity method decreased by € -67 million to € 1,626 million (2018: € 1,693 million). They mainly
include the equity investments in ArianeGroup, MBDA and ATR GIE.

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

31 December
2019
2,516
1,937
4,453
449
4,902

2018
2,267
1,544
3,811
489
4,300

Other investments mainly comprise the Company’s participations. The significant participations at 31 December 2019 include theremaining investment in Dassault Aviation (9.90%, 2018: 9.89%) amounting to € 968 million (2018: € 999 million).
Other long-term financial assets and the current portion of other long-term financial assets include other loans in the amount of€ 2,036 million as of 31 December 2019 (2018: € 1,523 million), and the sales financing activities in the form of finance lease receivables
and loans from aircraft financing.

17.

Inventories

Inventories of € 31,550 million (2018: € 31,891 million) decreased by € -341 million. This is driven by Airbus(€ -338 million) and Airbus Defence and Space (€ -651 million), partly offset by an increase at Airbus Helicopters (€ +578 million). In Airbus,
the decrease reflects a lower work in progress associated with the widebody programmes partly compensated by a higher work in progress
associated with A320 programme. In Airbus Defence and Space, the reduction is mainly driven by a decrease in work in progress for the
A400M reflecting the netting inventories with the respective portion of the loss making contracts provision. In Airbus Helicopters, theincrease reflects higher inventory associated with the Super Puma programme.

16Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 201918.

Provisions
31 December
2019
8,353
10,561
18,914
12,542
6,372(In € million)

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

2018
7,072
11,816
18,888
11,571
7,317

Provisions for pensions
As of 31 December 2019, the changes in actuarial assumptions resulted overall in a total net increase in pension liability of € 2,687 million,
principally reflecting the weakening of interest rates in Germany, France, Canada and the UK, partly compensated by the contributions
made into the various pension vehicles of € 1,758 million.
In light of the prolonged decline in interest rates and without any sign of change in this trend in a foreseeable future coupled with experience
gained over recent years, management revised its demographic assumptions related to the behaviour of beneficiaries under the German
pension plan. This resulted in a net increase in pension liability of € 1,793 million as of 30 June 2019, shown as part of the total changes
in actuarial assumptions. These changes in accounting estimates have been recognised through other comprehensive income.
The decrease in other provisions is mainly due to the release, utilisation and net presentation of the A380 and A220 programme losses
against inventories, partly compensated by the A400M net charge recorded in 2019 (see "– Note 6: “Revenue and Gross Margin”).
An additional provision of € 103 million related to restructuring measures has been recorded at year-end 2019 following the announcementin December 2019 to the Works Council of the main features that will be carried out to increase future competitiveness.

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

31 December
2019
996
37
1,033
1,148
444
468
2,060
3,093

2018
1,031
77
1,108
1,082
286
443
1,811
2,919

31 December
2019
2,434
3,725
1,339
7,498
1,560
552
159
376
2,647
10,145

2018
1,132
4,233
2,644
8,009
1,623
344
175
320
2,462
10,471Other 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

17

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019

The total net fair value of derivative financial instruments deteriorated by € -1,116 million to € -2,554 million (2018: € -1,438 million) as aresult of the strengthening of the US dollar versus the euro associated with the mark to market valuation of the hedge portfolio.
As of 31 December 2019, the total hedge portfolio with maturities up to 2026 amounts to US$ 97.1 billion (2018: US$ 81.9 billion) andcovers a major portion of the foreign exchange exposure expected over the period of the operative planning. The average US$/€ hedge
rate of the US$/€ hedge portfolio until 2026 amounts to 1.23 US$/€ (2018: 1.24 US$/€) and for the US$/£ hedge portfolio until 2023
amounts to 1.37 US$/£ (2018: 1.40 US$/£).
The allocation of European Governments’ refundable advances between non-current and current presented in the Unaudited Condensed
IFRS Consolidated Financial Statements ended 31 December 2019 is based on the applicable contractual repayment dates. The
European Governments’ refundable advances decreased by € -300 million to € 4,277 million (2018: € 4,577 million), primarily related tothe payments made on the A380 programme (see “– Note 6: Revenue and Gross Margin”).
The financial liabilities measured at fair value and classified as Level 3 consist mainly of the written put options on non-controlling interests(“NCI puts”) relating to ACLP (see”- Note 3: Acquisitions and Disposals”).The fair value of these NCI puts are derived from a discounted
cash flow analysis using the latest operating plan and a projection over the lifetime of the A220 programme.
In addition a post-tax WACC of 7.5% is used to discount the forecasted cash flows, taking into account the specificities ofthe programme (2018: 6.95%).
The decrease in the fair value of the NCI puts reflects the latest projections on funding needs, ramp-up phasing and market projections.

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

31 December
2019
351
86
85
522
1,252
626
147
398
2,423
2,945

2018
777
33
78
888
3,255
464
121
406
4,246
5,134

31 December
2019
384
384
614
6,203
6,817
7,201

2018
460
460
2,706
2,582
5,288
5,748

Other Liabilities(In € million)

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

18

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 201921.

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:
2019776,367,881
1,784,292
5,020,942
783,173,115(862,610)
782,310,505(In number of shares)

Issued as at 1 January
Issued for ESOP
Issued for convertible bondIssued at 31 December
Treasury shares
Outstanding at 31 December

2018774,556,062
1,811,819
776,367,881(636,924)
775,730,957

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 € 5,975 million (2018: € 9,724
million) representing a decrease of € -3,749 million. This is due to a net loss for the period of € -1,362 million and a decrease in othercomprehensive income, principally related to a change in actuarial gains and losses of € -2,345 million and the mark to market revaluationof the hedge portfolio of € -1,048 million, a dividend payment of € -1,280 million (€ 1.65 per share), partly compensated by the decreaseof € 1,318 million in the valuation of the puttable liability relating to ACLP (see "– Note 19: “Other Financial Assets and Other Financial
Liabilities”).
The non-controlling interests (“NCI”) from non-wholly owned subsidiaries increased to € 15 million as of 31 December 2019(2018: € -5 million). These NCI do not have a material interest in the Company’s activities and cash flows.

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.
31 December
2019
9,314
2,302
11,066
22,682(1,959)(8,189)12,534(In € million)

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

2018
9,413
2,132
10,662
22,207(1,463)(7,463)
13,281

The net cash position on 31 December 2019 amounted to € 12,534 million (2018: € 13,281 million), with a gross cash position of€ 22,682 million (2018: € 22,207 million).

Cash and Cash Equivalents
Cash and cash equivalents are composed of the following elements:
31 December
2019
1,649
7,014
652
(1)
9,314
0
9,314

(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
Recognised in disposal groups classified as held for sale
Recognised in cash and cash equivalents

2018
1,862
6,576
984
6
9,428
15
9,413

Only 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.

Securities
The Company’s securities portfolio amounts to € 13,368 million and € 12,794 million as of 31 December 2019 and 2018, respectively. The
security portfolio contains a non-current portion of € 11,066 million (2018: € 10,662 million), and a current portion of € 2,302 million (2018:€ 2,132 million).
19

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019

Financing Liabilities
31 December
2019
6,491
244
156
1,298
0
8,189
106
127
262
1,464
1,959
10,148(In € million)

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

2018
6,659
267
229
307
1
7,463
86
70
23
1,284
1,463
8,926

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

Long-term financing liabilities, mostly comprising bonds and lease liabilities, increased by € +726 million to € 8,189 million (2018: €7,463 million), mainly due to the application of IFRS 16 (see “– Note 2: Accounting Policies”). It was partly offset by the conversion of theconvertible bond issued in 1 July 2015 for an amount of € 500 million. The conversion price was € 99.54 per ordinary share.
Short-term financing liabilities increased by € +496 million to € 1,959 million (2018: € 1,463 million). The increase in short-term financing
liabilities is mainly related to the application of IFRS 16.

23.

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. 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 panel decisions, in May 2018 the WTO held that the EU achieved compliance in respect of the majorityof the subsidies at issue but considered that some remaining obligations required adjustments. The Company and the EU took corrective
actions that were reviewed by a WTO panel. The decision of that panel is currently being appealed. In the meantime, the US requested
authority to impose countermeasures worth US$ 11.2 billion per year, commensurate with its estimate of the adverse effects caused by
the EU subsidies. The WTO did not agree with the US estimate and authorised the US to impose US$ 7.5 billion in annual
countermeasures. The United States Trade Representative (“USTR”) imposed tariffs on a range of imports to the US from the EU including
10% on the importation of large civil aircraft from the EU. Those tariffs went into effect on 18 October 2019.
The tariffs could have a material impact on the financial statements, business and operations of the Company. At this stage it is too early
to determine the full extent of any financial impact on the Company. Duties on the importation of Airbus products into the US could resultin (i) increased costs for the aerospace and airline industries as well as other industries that rely on air transport, (ii) weakening demand
for new aircraft and negatively affecting the financial condition of air carriers and lessors, (iii) decisions to defer, reject or reschedule thedelivery of new aircraft or limit the routes upon which new aircraft will be used, (iv) increased costs to consumers, (v) retaliation by the EUwith its own import duties to be applied to US products, and/or (vi) damage to the Company’s business or reputation via negative publicity
adversely affecting the Company’s prospects in the commercial market place.
Several years of proceedings also identified significant unlawful support to Boeing. In its most recent decision on the matter in March
2019, the WTO found that the steps by the US to address US subsidies to Boeing were inadequate. The WTO Appellate Body also foundthat additional US federal and state programmes, such as the Foreign Sales Corporation (“FSC”) and Washington State tax reductions
constitute illegal subsidies. Consequently, the EU initiated its request for the authorisation of annual countermeasures amounting to up to
US$ 12 billion and published a preliminary list of products from the US on which the EU may take countermeasures, which includes US
aircraft. The actual amount of duties to which the EU may be entitled will be determined at the conclusion of WTO arbitration proceedings.
The imposition of equivalent or greater tariffs on aircraft imports into Europe is likely.
Exact timing of further steps in the WTO litigation process is subject to further rulings and to negotiations between the US and the EU.
20

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019

GPT
In August 2012, the UK Serious Fraud Office (“SFO”) announced that it had opened a formal criminal investigation in relation to GPTSpecial Project Management Ltd (“GPT”), a subsidiary operating in Saudi Arabia that the Company acquired in 2007. The investigation
relates to issues initially raised by a whistleblower concerning contractual arrangements originating prior to GPT’s acquisition andcontinuing thereafter. The Company has engaged with the SFO throughout and continues to actively cooperate with the investigation.

Eurofighter Austria
In 2017, the Austrian Federal Ministry of Defence raised criminal allegations against Airbus Defence and Space GmbH and Eurofighter
Jagdflugzeug GmbH for wilful deception and fraud in the context of the sale of the Eurofighter aircraft to Austria and respective damage
claims. After the Austrian Federal Ministry of Defence raised its criminal allegations, the Austrian public prosecutor opened investigations
against Airbus Defence and Space GmbH, Eurofighter Jagdflugzeug GmbH and former and current employees of the two entities including
related to the corresponding offset obligations. The Company has filed several submissions to the Austrian public prosecutor in responseto the allegations of deception in the procurement of Eurofighter combat aircraft made by the Austrian Defence Minister. The Company iscooperating fully with the authorities.

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 has agreed to pay penalties of € 3,597,766,766 plus interest and costs to the French,
UK and US authorities. This is recognised in the Company’s 2019 accounts. The settlements with each authority are 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.
Under the terms of the Convention Judiciaire d'Intérêt Public (“CJIP”) with the PNF, the Company has an obligation to submit its
compliance programme 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, including the payment of penalties.
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.

ECA Financing
The Company and the ECAs reached agreement on a process under which it is able to make applications for ECA-backed financing for
its customers across the Company on a case-by-case basis.

21

Airbus SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2019

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.
On 17 September 2019, the Company self-reported to German authorities potentially improper advance receipt and communication ofconfidential customer information by employees of Airbus Defence and Space GmbH. The information concerned relates to two future
German government procurement projects in the programme line Communications, Intelligence and Security. The self-disclosure by theCompany follows an ongoing internal review with the support of an external law firm. Both the German Ministry of Defence and the Munich
public prosecutor announced their intention to open an investigation into the matter. The Company will continue to fully cooperate with
relevant authorities. The investigation could have an impact on Airbus Defence and Space GmbH’s ability to participate in future public
procurement projects in Germany and may have other legal consequences.

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 are currently underway.

24.

Number of Employees
Airbus80,98580,92431 December 201931 December 201825.

Airbus Airbus Defence
Helicopters
and Space
20,02433,922
19,74533,002

Consolidated
Airbus134,931
133,671

Events after the Reporting Date

On 31 January 2020 the Company reached final agreements with the French Parquet National Financier (PNF), the U.K. Serious Fraud
Office (SFO) and the U.S. Department of State (DoS) (see “– Note 23: Litigation and Claims").
The UK formally exited the EU on 31 January 2020. From 1st February, both parties enter the 'transition period' during which the EU and
UK will negotiate additional relationship arrangements. The transition period runs until 31 December 2020.
The Company is monitoring the situation regarding the Coronavirus and evaluating any potential impacts to production and deliveries,
and will try to mitigate via alternative plans where necessary. There is no impact as of 31 December 2019.
On 12 February 2020, the Company and IQ have agreed to acquire Bombardier’s remaining stake in ACLP. This brings their holdings to
75% and 25% respectively. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired theA220 and A330 work package production capabilities from Bombardier in Ville Saint-Laurent, Quebec. Airbus will pay a total considerationof $ 0.6 bn, of which $ 0.5 bn would be paid on closing. With this transaction Bombardier is released of its future funding capital requirement
to ACLP. The Company is assessing the impacts of the transaction on its 2020 financial statements.

22