Press Release
Airbus reports Half-Year 2018 (H1) financial results•

Commercial aircraft environment robust, backlog underpins ramp-up plans•

H1 financials reflect mainly A350 XWB performance and delivery phasing•

Revenues € 25 billion; EBIT Adjusted € 1.2 billion•

EBIT (reported) € 1.1 billion; EPS (reported) € 0.64•

2018 guidance maintained

Amsterdam, 26 July 2018 – Airbus SE (stock exchange symbol: AIR) reported Half-Year (H1) 2018
consolidated financial results and maintained its guidance for the full year.

“The first half financials reflect the back-loaded deliveries due to A320neo engine shortages, while on thepositive side there was a strong improvement on the A350 programme,” said Airbus Chief Executive Officer
Tom Enders. “A320neo aircraft deliveries picked up during the second quarter but challenges remain tomeet our full year targets. Market demand remains strong for the expanded Airbus portfolio that now
includes the A220 at the smaller end. The recent Farnborough Airshow underlined this, with new businessfor over 400 single-aisle and wide-body aircraft announced. Our operational focus in commercial aircraft
remains squarely on securing the production ramp-up. On our largest military programme, the A400M, we
are making progress operationally, on improving capabilities as well as in negotiations with governments forthe necessary contract amendment.”

Net commercial aircraft orders increased to 206 (H1 2017: 203 aircraft) with gross orders of 261 aircraft
including 50 A350 XWBs and 14 A330s. The order backlog by units totalled 7,168 commercial aircraft as of
30 June 2018. During July’s Farnborough Airshow, Airbus announced orders and commitments for a totalof 431 aircraft although these are not yet reflected in the order book. Net helicopter orders totalled 143 units(H1 2017: 151 units). Airbus Defence and Space saw good order momentum, particularly in Space Systems,
while there are encouraging prospects for European military cooperation programmes in Military Aircraftand Unmanned Aerial Systems.
Consolidated revenues were stable at € 25.0 billion (H1 2017: € 25.2 billion(1)), reflecting the commercial
aircraft delivery mix and perimeter changes as well as the weakening of the US dollar. Deliveries totalled
303 commercial aircraft (H1 2017: 306 aircraft), comprising 239 A320 Family, 18 A330s, 40 A350 XWBs

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Press Releaseand six A380s. Airbus Helicopters delivered 141 units (H1 2017: 190 units) with revenues mainly reflecting
the perimeter change from the sale of Vector Aerospace in late 2017. Revenues at Airbus Defence andSpace reflected the stable core business and solid programme execution as well as the perimeter change
mainly related to the divestment of Defence Electronics in February 2017 and Airbus DS Communications,
Inc. in March 2018.
Consolidated EBIT Adjusted – an alternative performance measure and key indicator capturing theunderlying business margin by excluding material charges or profits caused by movements in provisions
related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from thedisposal and acquisition of businesses – totalled € 1,162 million (H1 2017: € 553 million(1)).
Airbus’ EBIT Adjusted of € 867 million (H1 2017: € 257 million(1)), reflected mainly the strong improvementon the A350 programme and the A320neo ramp-up and transition.

A total of 110 A320neo aircraft were delivered (H1 2017: 59 aircraft) with more NEO (new engine option)versions delivered than CEO (current engine option) versions in the second quarter. The ramp-up is
ongoing. Engine manufacturers are working to meet their commitments and resources and capabilities havebeen mobilised internally. A recovery plan is in place and the number of stored aircraft has started to decline
from the end of May peak but risks remain to meet the 800 aircraft delivery target, which is challenging. On
the A350 programme, the first A350-1000s were delivered to Qatar Airways and Cathay Pacific in the halfyear. Good progress was made on the recurring cost curve compared to a year earlier as the programme
ramps up to the targeted monthly production rate of 10 aircraft by year-end. The A350’s industrial system is
now reaching a mature level with the focus remaining on recurring cost convergence. Route proving flights
have now been completed on the A330neo with more than 1,000 flight hours accumulated by the test aircraft
fleet. The first delivery is expected end summer. In July, the BelugaXL transport aircraft completed its
maiden flight.
Airbus Helicopters’ EBIT Adjusted increased to € 135 million (H1 2017: € 80 million(1)), reflecting solid
underlying programme execution which compensated the lower deliveries.
Airbus Defence and Space’s EBIT Adjusted was € 309 million (H1 2017: € 298 million(1)), reflecting the stablecore business and solid programme execution. On a comparable basis the Division’s EBIT Adjusted was
broadly stable.

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Press Release
On the A400M programme, a total of eight aircraft were delivered compared to eight in the first half of 2017.
A provision update of € 98 million during the first half of 2018 mainly reflected price escalation. Progress
was made toward achieving military capabilities. Airbus continues to work with the Launch Customer
Nations to finalise a contract amendment by year-end.
Consolidated self-financed R&D expenses totalled € 1,403 million (H1 2017: € 1,288 million).
Consolidated EBIT (reported) was stable at € 1,120 million (H1 2017: € 1,211 million(1)), including
Adjustments totalling a net € -42 million. These comprised:•The € 98 million A400M provision increase due to an update for escalation assumptions;•

A negative € 21 million resulting from the first H160 helicopters;•

A negative impact of € 40 million from the dollar pre-delivery payment mismatch and balance sheet
revaluation;•

A total of € 40 million in other costs, including compliance and merger and acquisition costs;•

A net capital gain of € 157 million from divestments in Airbus Defence and Space.

Consolidated net income(2) of € 496 million (H1 2017: € 1,091 million(1)) and earnings per share of € 0.64 (H1
2017: € 1.41(1)) included a negative impact from the foreign exchange revaluation of financial instruments partly
offset by the positive revaluation of certain equity instruments. The finance result was € -303 million (H1 2017:€ +72 million(1)). Net income also reflects a higher effective tax rate from the reassessment of tax assets andliabilities.

Consolidated free cash flow before M&A and customer financing amounted to € -3,968 million (H1 2017:€ -2,093 million), reflecting the continued ramp-up while deliveries reflect the engine situation. Consolidated
free cash flow of € -3,797 million (H1 2017: € -1,956 million) included around € 0.3 billion of net proceeds fromdivestments at Airbus Defence and Space. Cash flow for aircraft financing was limited in the first half of 2018.
The consolidated net cash position on 30 June 2018 was € 8.1 billion (year-end 2017: € 13.4 billion) with agross cash position of € 17.8 billion (year-end 2017: € 24.6 billion).

OutlookAs the basis for its 2018 guidance, the Company expects the world economy and air traffic to grow in line withprevailing independent forecasts, which assume no major disruptions.
The 2018 earnings and guidance are prepared under IFRS 15.
The 2018 earnings and Free Cash Flow guidance is before M&A. It now includes the A220(3) integration.

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Press Release•

Airbus targets to deliver around 800 commercial aircraft, without the A220 Family.

•

On top, around 18 A220 deliveries are targeted for H2.

•

Before M&A, the Company expects EBIT Adjusted of approximately € 5.2 billion in 2018:•

The A220(3) integration is expected to reduce EBIT Adjusted by an estimated € -0.2 billion.



Therefore, including A220(3), the Company expects EBIT Adjusted to be approximately € 5.0 billion.

Compared to 2017 Free Cash Flow before M&A and Customer Financing of € 2.95 billion, the Company
expects Free Cash Flow to be at a similar level in 2018 before the A220 integration.


The A220(3) integration is expected to reduce Free Cash Flow before M&A and Customer
Financing by an estimated € -0.3 billion(3).

In 2018, the Company expects the net cash impact of the A220 integration to be largely coveredby the funding arrangement as laid out in the terms of the C Series Aircraft Limited Partnership,
meaning limited cash dilution.

***

About Airbus
Airbus is a global leader in aeronautics, space and related services. In 2017 it generated revenues of € 59 billion restatedfor IFRS 15 and employed a workforce of around 129,000. Airbus offers the most comprehensive range of passenger
airliners from 100 to more than 600 seats. Airbus is also a European leader providing tanker, combat, transport andmission aircraft, as well as one of the world’s leading space companies. In helicopters, Airbus provides the most efficientcivil and military rotorcraft solutions worldwide.
Airbus Investor Relations contacts:
Julie KITCHER

tel. +33 5 82 05 53 01

julie.kitcher@airbus.com

Mohamed DENDEN

tel. +33 5 82 05 30 53

mohamed.denden@airbus.com

Nicolas CHRETIEN

tel. +33 5 67 19 02 07

nicolas.n.chretien@airbus.com

Note to editors: Live Webcast of the Analyst Conference Call
At 08:30 CEST today, you can listen to the Half-Year 2018 Results Analyst Conference Call with Chief Executive Officer Tom
Enders and Chief Financial Officer Harald Wilhelm via www.airbus.com. The analyst call presentation can also be found on thecompany website. A recording will be made available in due course. For a reconciliation of Airbus’ KPIs to “reported IFRS” pleaserefer to the analyst presentation.

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Press Release
Airbus Consolidated – Half-Year (H1) Results 2018
(Amounts in Euro)

Airbus Consolidated

H1 2018

H1 2017

ChangeRevenues, in millions

24,97025,175(1)

-1%

4,041

4,619(1)-13%

EBIT Adjusted, in millions

1,162

553(1)+110%

EBIT (reported), in millions

1,120

1,211(1)-8%Research & Development expenses,
in millions

1,403

1,288

+9%

Net Income(2), in millions

496

1,091(1)-55%

Earnings Per Share (EPS)

0.64

1.41(1)-55%

Free Cash Flow (FCF), in millions-3,797-1,956-

Free Cash Flow
before M&A, in millions-4,069-2,547-

Free Cash Flow before M&A
and Customer Financing, in millions-3,968-2,093-

Airbus Consolidated

30 June2018

31 Dec2017

ChangeNet Cash position, in millions

8,068

13,390(1)-40%

Employees

129,450

129,4420%

thereof defence, in millions

For footnotes please refer to page 11.

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Press Release
By Business
Segment

Revenues

EBIT (reported)

H1
2018

H1
2017(1)

ChangeH1
2018

H1
2017(1)

ChangeAirbus18,54618,182

+2%

773

381

+103%

Airbus Helicopters

2,388

2,716

-12%

114

80

+43%

4,652

4,900

-5%

382

832

-54%

-616

-623

-

-149

-82

-

24,97025,175

-1%

1,120

1,211

-8%

(Amounts in millions ofEuro)Airbus Defence andSpaceTransversal &Eliminations
Total

By Business
Segment

EBIT Adjusted(Amounts in millions of
Euro)

H1
2018

H1
2017(1)

ChangeAirbus

867

257

+237%

Airbus Helicopters

135

80

+69%

309

298

+4%

-149

-82

-

1,162

553

+110%

Airbus Defence andSpaceTransversal &Eliminations
Total

By Business
Segment

Airbus, in units
Airbus Helicopters, inunits
Airbus Helicopters, inmillions of Euro
Airbus Defence andSpace, in millions ofEuro

Order Intake (net)

Order Book

H1
2018

H1
2017

Change30 June2018

30 June2017

Change

206

203

+1%

7,168

6,771

+6%

143

151

-5%

694

727

-5%

2,068

3,630

-43%

12,537

11,996

+5%

3,184

3,616

-12%

36,462

38,708-6%

For footnotes please refer to page 11.

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Press Release
Airbus Consolidated – Second Quarter Results (Q2) 2018
(Amounts in Euro)

Airbus Consolidated

Q2 2018

Q2 2017(1)ChangeRevenues, in millions

14,851

13,733+8%

EBIT Adjusted, in millions

1,148

572

+101%

EBIT (reported), in millions

921

636

+45%

(2)

Net Income , in millions

213

682

-69%

Earnings Per Share (EPS)

0.27

0.88

-69%

By Business Segment

Revenues

EBIT (reported)(Amounts in millions of Euro)

Q2
2018

Q2
2017(1)

ChangeQ2
2018

Q2
2017(1)

ChangeAirbus11,324

10,016

+13%

775

429

+81%

Airbus Helicopters

1,427

1,540

-7%

124

86

+44%

Airbus Defence and Space

2,435

2,560

-5%

117

175

-33%

Transversal & Eliminations

-335

-383

-

-95

-54

-

Total

14,851

13,733

+8%

921

636

+45%

By Business Segment

EBIT Adjusted(Amounts in millions of Euro)

Q2
2018

Q2
2017(1)

ChangeAirbus

908

360

+152%

Airbus Helicopters

138

86

+60%

Airbus Defence and Space

197

180

+9%

Transversal & Eliminations

-95

-54

-

Total

1,148

572

+101%

For footnotes please refer to page 11.

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Press ReleaseQ2 2018 revenues increased by eight percent, driven by commercial aircraft deliveries, partly compensatedby perimeter changes at Airbus Helicopters and Airbus Defence and Space.
Q2 2018 EBIT Adjusted increased by 101 percent, reflecting the strong improvement from the A350 XWB
programme, A320neo ramp-up and transition as well as solid programme execution at Airbus Helicoptersand Airbus Defence and Space.
Q2 2018 EBIT (reported) increased by 45 percent to € 921 million. It reflected net negative Adjustments of €-227 million booked in the quarter. Adjustments in the second quarter of 2017 amounted to a net € +64 million.
Q2 2018 Net Income decreased by 69 percent, mainly driven by negative foreign exchange effects and ahigher effective tax rate.

EBIT (reported) / EBIT Adjusted Reconciliation
The table below reconciles EBIT (reported) with EBIT Adjusted.

Airbus Consolidated

H1 2018

EBIT (reported), in millions of Euro

1,120

thereof:
A400M provision update, in millions of
Euro

-98

First H160s, in millions of Euro

-21

$ PDP mismatch/Balance Sheet
revaluation, in millions of Euro
Compliance costs/others, in millions ofEuroAirbus Defence and Space perimeterchange, in millions of EuroEBIT Adjusted, in millions of Euro

-40
-40
157
1,162

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Press Release
Glossary
KPI
EBIT
Adjustments

DEFINITION
The Company continues to use the term EBIT (Earnings before interest and taxes). It is
identical to Profit before finance cost and income taxes as defined by IFRS Rules.
Adjustments, an alternative performance measure, is a term used by the Company which
includes material charges or profits caused by movements in provisions related toprogrammes, restructuring or foreign exchange impacts as well as capital gains/losses fromthe disposal and acquisition of businesses.

EBIT Adjusted

EBIT Adjusted – an alternative performance measure and key indicator capturing theunderlying business margin by excluding material charges or profits caused by movements
in provisions related to programmes, restructuring or foreign exchange impacts as well as
capital gains/losses from the disposal and acquisition of businesses.

EPS Adjusted

EPS Adjusted is an alternative performance measure of basic earnings per share asreported whereby the net income as the numerator does include Adjustments. For
reconciliation, see slide 19 of the Analyst presentation.

Gross cash

The Company defines its consolidated gross cash position as the sum of (i) cash and cash
equivalents and (ii) securities (as all recorded in the consolidated statement of financial
position).

position
Net cashposition

For definition of the alternative performance measure net cash position, see Registration
Document, MD&A section 2.1.3.

FCF

For the definition of the alternative performance measure free cash flow, see Registration
Document, MD&A section 2.1.3. It is a key indicator which allows the Company to measure
the amount of cash flow generated from operations after cash used in investing activities.

FCF before M&AFree cash flow before mergers and acquisitions refers to free cash flow as defined in theRegistration Document, MD&A section 2.1.3 adjusted for net proceeds from disposals andacquisitions. It is an alternative performance measure and indicator that is important in order
to measure FCF excluding those cash flows from the disposal and acquisition of businesses.

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

and customer
financing

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Press Release
Footnotes:
1)

Where applicable, 2017 figures have been restated to reflect the adoption of the IFRS 15 accounting
standard and new segment reporting as of 1 January, 2018. The new segment reporting reflects themerger of Headquarters into Airbus. Where applicable, ‘Airbus’ refers to commercial aircraft and theintegrated functions while ‘Airbus Consolidated’ or ‘the Company’ refers to Airbus SE.

2)

Airbus SE continues to use the term Net Income. It is identical to Profit for the period attributable toequity owners of the parent as defined by IFRS Rules.

3)

Based on preliminary data.

Safe Harbour Statement:This press release includes forward-looking statements. Words such as “anticipates”, “believes”, “estimates”, “expects”,“intends”, “plans”, “projects”, “may” and similar expressions are used to identify these forward-looking statements.
Examples of forward-looking statements include statements made about strategy, ramp-up and delivery schedules,
introduction of new products and services and market expectations, as well as statements regarding future performanceand outlook.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events andcircumstances and there are many factors that could cause actual results and developments to differ materially fromthose expressed or implied by these forward-looking statements.
These factors include but are not limited to:













Changes in general economic, political or market conditions, including the cyclical nature of some of Airbus’
businesses;
Significant disruptions in air travel (including as a result of terrorist attacks);
Currency exchange rate fluctuations, in particular between the Euro and the U.S. dollar;
The successful execution of internal performance plans, including cost reduction and productivity efforts;
Product performance risks, as well as programme development and management risks;
Customer, supplier and subcontractor performance or contract negotiations, including financing issues;Competition and consolidation in the aerospace and defence industry;
Significant collective bargaining labour disputes;
The outcome of political and legal processes including the availability of government financing for certain
programmes and the size of defence and space procurement budgets;
Research and development costs in connection with new products;
Legal, financial and governmental risks related to international transactions;
Legal and investigatory proceedings and other economic, political and technological risks and uncertainties.

As a result, Airbus SE’s actual results may differ materially from the plans, goals and expectations set forth in suchforward-looking statements.
For a discussion of factors that could cause future results to differ from such forward-looking statements, see the Airbus
SE “Registration Document” dated 28 March 2018, including the Risk Factors section.
Any forward-looking statement contained in this press release speaks as of the date of this press release. Airbus SE
undertakes no obligation to publicly revise or update any forward-looking statements in light of new information, future
events or otherwise.
Rounding
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not preciselyreflect the absolute figures.
IFRS 15
The Company has adopted the IFRS 15 standard as of 1 January 2018. 2017 figures are pro-forma, amended withIFRS 15 restatement and new segment reporting.

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