Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

Contents
1 Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Statements ......................................................................2
Unaudited Condensed Interim IFRS Consolidated Income Statement ...............................................................................................2
Unaudited Condensed Interim IFRS Consolidated Statement of Comprehensive Income .................................................................3
Unaudited Condensed Interim IFRS Consolidated Statement of Financial Position ...........................................................................4
Unaudited Condensed Interim IFRS Consolidated Statement of Cash Flows ....................................................................................6
Unaudited Condensed Interim IFRS Consolidated Statement of Changes in Equity ..........................................................................7
2 Notes to the Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Statements.................................................81.

The Company .......................................................................................................................................................................82.

Impact of the spread of the COVID-19 pandemic ..................................................................................................................83.

Accounting Policies ............................................................................................................................................................. 10

4.

Acquisitions and Disposals.................................................................................................................................................. 10

5.

Related Party Transactions ................................................................................................................................................. 10

6.

Segment Information ........................................................................................................................................................... 11

7.

Revenue and Gross Margin ................................................................................................................................................ 12

8.

Research and Development Expenses ............................................................................................................................... 13

9.

Other Income and Other Expenses ..................................................................................................................................... 13

10.

Share of Profit from Investments Accounted for under the Equity Method and Other Income from Investments .................. 13

11.

Total Financial Result.......................................................................................................................................................... 13

12.

Income Taxes ..................................................................................................................................................................... 13

13.

Earnings per Share ............................................................................................................................................................. 13

14.

Intangible Assets and Property, Plant and Equipment ......................................................................................................... 14

15.

Investments Accounted for under the Equity Method........................................................................................................... 14

16.

Other Investments and Other Long-Term Financial Assets ................................................................................................. 14

17.

Inventories .......................................................................................................................................................................... 14

18.

Provisions ........................................................................................................................................................................... 14

19.

Other Financial Assets and Other Financial Liabilities ......................................................................................................... 15

20.

Other Assets and Other Liabilities ....................................................................................................................................... 15

21.

Total Equity ......................................................................................................................................................................... 1622.

Net Cash / (Net Debt).......................................................................................................................................................... 16

23.

Financial Instruments .......................................................................................................................................................... 17

24.

Litigation and Claims ........................................................................................................................................................... 19

25.

Number of Employees......................................................................................................................................................... 21

26.

Events after the Reporting Date .......................................................................................................................................... 21

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

1
Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Statements
Unaudited Condensed Interim
IFRS Consolidated Income Statement(In € million)

Revenue
Cost of sales
Gross margin
Selling expenses
Administrative expenses
Research and development expenses
Other income
Other expenses
Share of profit from investments accounted for underthe equity method
Other income from investments(Loss) Profit before financial result and income
taxesInterest income
Interest expense
Other financial result
Total financial result
Income taxes(Loss) Profit for the period

Note
7

1 January 30 September
2020
30,161

1 January 30 September
2019
46,168

1 July 30 September
2020
11,213

1 July 30 September
2019
15,302

7(27,524)
2,637(38,985)
7,183(9,528)
1,685(12,731)
2,571

8
9
9

(531)
(1,053)(2,032)99(1,375)(674)(1,153)(2,150)
247
(116)

(161)
(290)
(636)
31
(1,232)

(214)
(379)
(727)
115
(53)

10
10

(45)
115

76
18

(27)
4

21
4

(2,185)

3,431

(626)

1,338

101
(313)
(500)
(712)
197
(2,700)

143
(266)
(110)
(233)
(1,024)
2,174

19
(102)
(200)
(283)
133
(776)

52
(75)
5
(18)
(347)
973

(2,686)
(14)

2,186
(12)

(767)
(9)

989
(16)

11
12

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

13
13

€

€

€

€

(3.43)(3.43)

2.81
2.80(0.98)(0.98)

1.27
1.27

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

2

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

Unaudited Condensed Interim
IFRS Consolidated Statement of Comprehensive Income(In € million)(Loss) Profit for the period
Other comprehensive income

1 January 30 September
2020(2,700)1 January 30 September
2019
2,174

1 July 30 September
2020
(776)

1 July 30 September
2019
973

(1,159)(295)(4,323)
161

(240)
10

(1,377)
23

(90)
254

(19)
859

(12)
43

(17)
371

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

(146)
(99)
(197)

70
(3,982)
266

(82)
2,137
26

56
(3,696)48

753(1,672)(4,372)

4993(5,971)(3,797)

21
(546)
1,357
581

(2)
944
(3,650)(2,677)

Attributable to:Equity owners of the parent
Non-controlling interests(4,362)(10)(3,730)
(67)

572
9

(2,621)(56)

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

3

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

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

Note

30 September 2020

31 December 201914
14

16,394
16,666
2
1,476
3,457
58
1,332
535
5,475
5,514
50,90916,591
17,294
2
1,626
4,453
91
1,033
522
5,008
11,066
57,68636,655
4,860
402
1,378
2,145
2,883
1,493
1,654
10,92762,39731,550
5,674
449
1,167
2,060
2,423
1,784
2,302
9,314
56,723

0
113,306

0
114,409

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

15
16
19
20
22

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

17
16
19
20
22
22

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

4

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

(In € million)

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

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

Note

30 September 2020

31 December 2019

21

785
3,594
(1,252)(1,171)
(42)
1,914
10
1,924

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

13,76013,973
19,256
6,261
375
370
45
54,04012,542
8,189
16,980
7,498
384
398
54
46,045

7,081
4,364
9,526
26,542
3,081
3,184
2,892
672
57,342
0
111,382
113,306

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

18
22
19
20

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

18
22

19
20

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

5

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

Unaudited Condensed Interim
IFRS Consolidated Statement of Cash Flows
1 January 30 September 2020

1 January 30 September 2019

(2,686)

2,186

(14)

(12)

2,044
1,000
(373)

1,992
347
574

393
(4)
45
1,288
(261)
(12,316)(10,884)

158
(69)
(76)
(647)
(113)
(8,204)(3,864)(1,191)(1,457)

150

109

(481)
0

8
(11)

(407)

(700)

335
14
6,141
4,561

422
53
(18)
(1,594)

Change in financing liabilities
Cash distribution to Airbus SE shareholders
Changes in liability for puttable instruments
Changes in capital and non-controlling interests
Change in treasury shares
Cash provided by financing activities

7,992
0
85
83
(4)
8,156

1,243
(1,280)
243
133
4
343

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

(220)
1,613
9,314
10,927300(4,815)
9,428
4,613

(In € million)

Note

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

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

6

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

Unaudited Condensed Interim
IFRS Consolidated Statement of Changes in Equity
Equity attributable
to equity ownersof the parent
9,724

Non-controllinginterests(5)

Total Equity
9,719

Restatements (1)Balance at 1 January 2019, restated

(122)
9,602

0
(5)

(122)
9,597

Profit for the period
Other comprehensive income
Total comprehensive income for the period
Cash distribution to shareholders /dividends to non-controlling interests
Capital increase
Share-based payment (IFRS 2)
Equity transaction (IAS 27)
Change in treasury shares
Balance at 30 September 2019

2,186
(5,916)(3,730)

(12)
(55)
(67)

2,174
(5,971)(3,797)(1,280)
133
67
(69)
4
4,727

0
6
0
78
0
12

(1,280)
139
67
9
4
4,739

(In € million)

Balance at 1 January 2019, as reported

Balance at 1 January 2020

5,975

15

5,990

Loss for the period
Other comprehensive income
Total comprehensive income for the period
Capital increase
Share-based payment (IFRS 2)
Equity transaction (IAS 27)
Change in treasury shares
Balance at 30 September 2020

(2,686)(1,676)(4,362)
40
32
189
40
1,914

(14)
4
(10)
0
0
5
0
10

(2,700)(1,672)(4,372)
40
32
194
40
1,924

(1)

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

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

7

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 20202
Notes to the Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Statements
1.

The Company

The accompanying Unaudited Condensed Interim IFRS Consolidated Financial Statements present the financial position and the resultsof operations of Airbus SE together with its subsidiaries referred to as “the Company”, a European public limited-liability company(Societas Europaea) with its seat (statutaire zetel) in Amsterdam, The Netherlands, its registered address at Mendelweg 30, 2333 CS
Leiden, The Netherlands, and registered with the Dutch Commercial Register (Handelsregister) under number 24288945. The Company’s
reportable segments are Airbus, Airbus Helicopters and Airbus Defence and Space (see “– Note 6: Segment Information”). The Company
is listed on the European stock exchanges in Paris, Frankfurt am Main, Madrid, Barcelona, Valencia and Bilbao. The Unaudited
Condensed Interim IFRS Consolidated Financial Statements were authorised for issue by the Company’s Board of Directors on
28 October 2020.

2.

Impact of the spread of the COVID-19 pandemic

The COVID-19 pandemic, the resulting health and economic crisis and actions taken in response to the spread of the pandemic, including
government measures and travel limitations and restrictions, have resulted in significant disruption to the Company’s business operations
and supply chain. A number of measures have been taken by the Company to implement stringent health and safety procedures while
taking account of stock levels and production lead-times.
The aerospace industry, commercial aircraft market, commercial air traffic and demand for air travel have been severely impacted by the
COVID-19 crisis. As a result, airlines have reduced capacity, grounded large portions of their fleets temporarily, sought to implement
measures to reduce cash spending and secure liquidity. The Company may face additional risks and uncertainties resulting from futureconsequences of the health and economic crisis on airlines, lessors and other actors in the air transport industry.
On 23 March 2020, the Company withdrew its 2020 guidance due to the volatility of the situation.
On 8 April 2020, the Company has announced its decision to adapt commercial aircraft production rates to 40 per month for the A320
Family, 2 per month for A330 and 6 per month for A350 in response to the new COVID-19 market environment. Subsequently, the rate
for A350 was further reduced to 5 per month. This represents a reduction of the March 2020 pre-COVID-19 average rates of roughly one
third. With these new rates, the Company intends to preserve its ability to meet customer demand while protecting its ability to further
adapt as the global market evolves.
The Company is monitoring the evolution of the COVID-19 pandemic and will continue to assess further impacts going forward. The mainelements related to the consolidated financial statements considered as of 30 September 2020 are detailed in the following sections. A
consistent set of assumptions has been applied for each of the below elements.
The Company’s business, results of operations and financial condition have been and will continue to be materially affected by the COVID19 pandemic, and the Company continues to face significant risks and uncertainties related to the COVID-19 pandemic and its resulting
health and economic crisis. For further information, please refer to Airbus SE's 2019 Universal Registration Document dated 23 March
2020, including the Risk Factors section.

2.1

Going concern and associated liquidity measures

On 23 March 2020, the Company has announced measures to bolster its liquidity and balance sheet in response to the COVID-19
pandemic, including a new € 15 billion credit facility, the withdrawal of 2019 dividend proposal with cash value of € 1.4 billion, thesuspension of voluntary top up pension funding and strong focus on support to customers and delivery. In parallel, governmental partners
have supported the aerospace sector since the beginning of the crisis either through direct support to airlines and suppliers, or throughpartial unemployment schemes. With these decisions, the Company has available liquidity to cope with additional cash requirements,
including the amended production rates as described above.
Based on the above, management considers the Company has sufficient resources to continue operating for at least 12 months.

8

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

2.2

Goodwill impairment

As a result of the deterioration in the economic environment and the uncertainty in the business outlook, the Company has performed an
impairment test of goodwill, which led to no impairment being necessary as of 30 September 2020.
These tests have been performed in line with the methodology used for the annual impairment test of each of the Company's Cash
Generating Units (CGUs). Cash flow projections are normally based on latest operative planning and expected cash flows beyond theplanning horizon through a terminal value. In the current context management's best assessment of future production rates, aircraft
deliveries and order in-take, together with mitigating actions that the Company may implement, have been used to derive cash flow
projections for the years 2020 until 2024, and thereafter for the terminal value.
In addition, the Company performed a comparison with the fair value of each CGU derived from the market capitalisation. The market
capitalisation as of 30 September 2020 amounts to € 48.6 billion and significantly exceeds the equity of the Company.

2.3

Other Investments and Other Long-Term Financial Assets / Joint Ventures

The Company’s main investments have been impacted by the high volatility in financial markets in the first nine months 2020 with thevariation recorded either through financial result or OCI. The impact in financial result amounts to € -136 million for a loan to OneWeb
Communications and € -368 million for the investment in Dassault Aviation. The impact in OCI for € -455 million includes OneWeb
Communications and other investments.
For further information on Dassault and OneWeb investments, please see “– Note 16: Other Investments and Other Long-Term Financial
Assets”.

2.4

Workforce adaptation

In June 2020 the Company announced plans to adapt its global workforce, principally in France, Germany, Spain and the UK, and resize
its commercial aircraft activity in response to the COVID-19 crisis. This adaptation was initially expected to result in a reduction of around
15,000 positions no later than summer 2021. This number was subsequently reduced to approximately 13,000 positions reflecting
departures which occurred after the initial announcement.
In addition, Airbus Defence and Space has entered the consultation process with the Company’s European works council on the division’splanned restructuring. The plan presented to the employee representatives foresees initially the reduction of around 1,900 positions until
the end of 2021. This number was also subsequently reduced to approximately 1,600 positions reflecting departures which occurred after
the initial announcement.
Working time adaptation and government support measures will lead to a further reduction in the number of departures.
As of 30 September 2020, a restructuring provision has been recognised for an amount of € 1.2 billion including mainly the cost of voluntaryand compulsory measures taking into account management best estimates on the impact of the working time adaptation and government
support measures. Total payments to employees affected by the plan would amount to approximately € 1.5 billion, including the settlementof other accrued employee benefits. The restructuring provision is based on the latest status of negotiation with social partners, andtherefore may be reassessed.

2.5

Operational assets

Due to the COVID-19 triggering event, the Company has performed a comprehensive review of its operational assets and liabilities taking
into account the amended production rates and expected future deliveries. This review has resulted in charges being recorded in the firstnine months 2020 for an amount of € 1.3 billion, including an impairment of inventories considered at risk of € 351 million, additional
provisions relating to A380 programme of € 279 million, a write-off of capitalised development costs of € 101 million, provisions for suppliercommitments of € 145 million and provisions covering various commercial risks of approximately € 330 million.

2.6

Deferred taxes

As of 30 September 2020, the recoverability of deferred tax assets has been assessed based on the latest information available andresulting from the COVID-19 pandemic. This has led to deferred tax asset impairments amounting to € 471 million in the first nine months
2020 including tax losses carried forward.

2.7

Hedge accounting

The Company has maintained its hedge accounting policies as defined in the 2019 year-end financial statements. In the Company’s
assessment the risk of future cancellations that are not yet materialised has been included. When transactions are no longer expected tooccur in accordance with the hedge designation, the accumulated gains or losses on the hedging instrument have been reclassified tofinancial result. The impact in financial result amounts to € -52 million as of 30 September 2020, mainly relating to the widebody
programmes.
The increase of the counterparty credit risk and credit spread is included in the determination of the fair value of the hedges and had
limited impact on the measurement of hedge ineffectiveness.
The Company performed a material rollover campaign for a nominal amount of US$ 31 billion during the last quarter to re-align thehedging portfolio to the last available long term delivery plan, including roll-overs at historical rates for a nominal amount of US$ 8 billion
in July 2020 as part of the liquidity measures. In this way, the Company mitigates the cash flow impacts occurring when the gains orlosses on the forward hedges do not coincide with the currency gains or losses on the underlying commercial transactions.
In the Company’s assessment the risk of aircraft rescheduling beyond the risk management and the risk of future cancellations, notably
due to potential airlines default, have been included. The Company plans to review this position going forward to identify any potential
trigger for hedge disqualification.
9

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

2.8

Expected credit loss

The Company has also considered the impact of COVID-19 pandemic on the expected credit loss of its financial instruments (mainlyloans, trade and lease receivables). The amount and timing of the expected credit losses, as well as the probability assigned thereto, hasbeen based on the available information at the end of the first nine months 2020. As a result of this review no significant credit losses
have been recorded in the first nine months 2020 (see “- Note 16: Other Investments and Other Long-Term Financial Assets”).

2.9

Pensions

The COVID-19 pandemic has a significant impact on market fluctuations (mainly impacting the interest rates and asset market values)
which has triggered the need for a re-measurement of the defined benefit obligation and pension plan assets. The increase on the net
pension liability for the first nine months 2020 amounting to € 1.2 billion is recognised in other comprehensive income and is subject tofuture volatility (see “– Note 18: Provisions”).

3.

Accounting Policies

The Unaudited Condensed Interim 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.
These unaudited Condensed Interim IFRS Consolidated Financial Statements are prepared in compliance with IAS 34 and should beread in conjunction with the IFRS Consolidated Financial Statements as of 31 December 2019. The Company’s accounting policies andmethods are unchanged compared to 31 December 2019. The implementation of other amended standards has no material impact on
the Unaudited Condensed Interim IFRS Consolidated Financial Statements as of 30 September 2020.

Use of Estimates and Judgements
In preparing the Unaudited Condensed Interim IFRS Consolidated Financial Statements, management makes assumptions and estimates.
These estimates are revised if the underlying circumstances have evolved or in light of new information. The underlying assumptions used
for the main estimates are similar to those described in the Company’s IFRS Consolidated Financial Statements as of 31 December 2019.
The exceptions are:4.

-

estimates and judgements have been updated due to the COVID-19 outbreak (see “– Note 2: Impact of the spread of the
COVID-19 pandemic"); and-the estimate of income tax liabilities which is determined in the interim financial statements using the estimated average annual
effective income tax rate applied to the pre-tax income of the interim period.

Acquisitions and Disposals

Acquisitions
On 12 February 2020, Bombardier transferred its remaining shares in Airbus Canada Limited Partnership (“ACLP”) to Airbus andInvestissement Québec (“IQ”). As per the agreement, Airbus acquired an additional 29.64% of the issued shares in ACLP. This agreement
brings the shareholdings in ACLP for Airbus and IQ to 75% and 25%, respectively.
Airbus paid to Bombardier a consideration of US$ 591 million of which US$ 531 million was received at closing and US$ 60 million to be
paid over the 2020-22 period under certain conditions. The agreement also provides for the cancellation of Bombardier warrants owned
by Airbus, as well as releasing Bombardier of its future funding capital requirement to ACLP, previously performed through the non-voting
participation Class B common units in ACLP.
The call rights of Airbus in respect of all IQ’s interests in ACLP at fair market value have been extended by an additional three years to
January 2026.
The effect of this equity transaction on the equity attributable to the owners of ACLP amounts to € -53 million.
As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package
production capabilities from Bombardier in Saint Laurent, Québec. Under this non-material transaction, the fair value of the net assets
acquired amount to US$ -4 million.

5.

Related Party Transactions

The Company has entered into various transactions with related entities; carried out in the normal course of business.
10Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

6.

Segment Information

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

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



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



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

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. The activities related to innovation and digital transformation, which were formerly reported in the column“Transversal/Eliminations”, are now included in the business segment Airbus under the new segment structure. Consolidation effects willcontinue to be reported in the column “Eliminations”.
The Company uses EBIT as a key indicator of its economic performance.
Business segment information for the nine-month period ended 30 September 2020 is as follows:(In € million)

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

Airbus
20,271(425)
19,846

AirbusHelicopters
3,623
(201)
3,422

AirbusDefenceand Space
6,936
(43)
6,893

Eliminations
0
0
0

Consolidated
Airbus30,830(669)
30,161

18,133
24
1,689

1,486
137
1,799

1,703
2,747
2,443

0
0
0

21,322
2,908
5,931(2,399)(1,674)

238
(196)

(36)
(177)

12
15

(2,185)(2,032)
(212)
(500)
197
(2,700)Airbus35,572(467)
35,105

AirbusHelicopters
3,712
(304)
3,408

AirbusDefenceand Space
7,706
(51)
7,655

Eliminations
0
0
0

Consolidated
Airbus46,990(822)
46,16832,577
18
2,510

1,572
178
1,658

2,316
3,058
2,281

0
0
0

36,465
3,254
6,449

3,165
(1,735)

203
(216)

83
(216)

(20)
17

3,431
(2,150)(123)(110)(1,024)2,174

Business segment information for the nine-month period ended 30 September 2019 is as follows:(In € million)

Total revenue
Internal revenue
Revenue
thereofsales of goods at a point in timesales of goods over time
services, including sales of spare parts
Profit (loss) before financial result and income taxes(EBIT) (1)thereof research and development expenses (1)Interest result
Other financial result
Income taxes
Profit for the period(1)

Restated due to new segment presentation.

11

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

7.

Revenue and Gross Margin

Revenue decreased by € -16,007 million to € 30,161 million (first nine months 2019: € 46,168 million). The decrease is mainly driven by
Airbus (€ -15,259 million) reflecting lower deliveries in a difficult market environment (see "– Note 2: “Impact of the spread of the COVID19 pandemic”), partly offset by a favourable foreign exchange impact.
Revenue by geographical areas based on the location of the customer is as follows:
1 January 30 September 2020
7,297
13,668
5,179
1,382
619
2,016
30,161(In € million)

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

1 January 30 September 201914,264
15,657
8,211
4,273
1,263
2,500
46,168The gross margin decreased by € -4,546 million to € 2,637 million compared to € 7,183 million in the first nine months 2019. It mainlyreflects lower deliveries and lower cost efficiency at Airbus. The gross margin rate decreased from 15.6% to 8.7%.
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. As a consequence of this decision, deliveries of the A380 will cease in 2022.
At year-end 2018, the Company impaired specific A380 assets in the amount of € 167 million, recognised an onerous contract provision
for an amount of € 1,257 million and updated the measurement of refundable 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.
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.
In the first nine months 2020, the Company recorded an additional net charge of € 313 million in EBIT.
As of 30 September 2020, the Company has delivered a total of 93 A400M aircraft including 5 aircraft in the first nine months 2020.
The COVID-19 pandemic is weighing on the performance of development, production, flight testing, aircraft delivery and retrofit activities.
The Company continued with development activities toward achieving the revised capability roadmap. Retrofit activities are progressing
in close alignment with the customer.
In the fourth quarter 2019, an update of the contract estimate at completion was performed and an additional charge of € 1,212 million
recorded. This reflected mainly the updated estimates on the export scenario during the launch contract phase as well as some cost
increases in particular for retrofit and an updated view on applicable escalation. Main year-end 2019 assumptions remain unchanged asof 30 September 2020. Impact of € 59 million in the first nine months mainly reflects variation of price escalation indexes.
Risks remain on the development of technical capabilities and associated costs, on aircraft operational reliability in particular with regard
to power plant, on cost reductions and on securing export orders in time as per the revised baseline.
Due to the suspension of defence export licences to Saudi Arabia by the German Government until 31 March 2020, and the consequential
inability of the Company to execute a customer contract, a revised Estimate at Completion (EAC) was performed as of 31 December
2019. 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 in 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. The year-end 2019 assessment
remains unchanged as of 30 September 2020.

12

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

8.

Research and Development Expenses

Research and development expenses decreased by € -118 million to € 2,032 million compared to € 2,150 million in the first nine months
2019.

9.

Other Income and Other Expenses

Other income decreased by € -148 million to € 99 million compared to € 247 million in the first nine months 2019.
Other expenses increased by € +1,259 million to € -1,375 million compared to € -116 million in the first nine months 2019, mainly due tothe restructuring provision recorded in the first nine months 2020 in response to the COVID-19 pandemic. For more details, see "– Note
2: “Impact of the spread of the COVID-19 pandemic”.

10. Share of Profit from Investments Accounted for under the Equity
Method and Other Income from Investments
Share of profit from investments under the equity method and other income from investments decreased by € -24 million to € 70
million compared to € 94 million in the first nine months 2019.

11.

Total Financial Result

Total financial result deteriorated by € -479 million to € -712 million compared to € -233 million in the first nine months 2019. This ismainly due to the revaluation of certain equity investments (see “– Note 16: Other Investments and Other Long-Term Financial Assets)
and the re-measurement on the A350 Repayable Launch Investment (“RLI”) (see “– Note 19: Other Financial Assets and Other Financial
Liabilities"), partly offset by the revaluation of the exchangeable bonds to be convertible into Dassault Aviation shares.

12.

Income Taxes

The income tax benefit amounts to € +197 million (first nine months 2019: € -1,024 million). It corresponds to an effective income tax rateof 6.8% (first nine months 2019: 32.0%) driven by the negative pre-tax result in the first nine months 2020 offset by deferred tax asset
impairments, tax-free revaluation of certain equity investments and tax risks updates.

13.

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

1 January 30 September 2020
€ (2,686) million
783,012,736€ (3.43)

1 January 30 September 2019
€ 2,186 million
776,697,534€ 2.81

Diluted earnings per share – The Company’s dilutive potential ordinary shares are share-settled Performance Units relating to LongTerm Incentive Plans (“LTIP”).
As there is a loss in the first nine months 2020, the effect of potentially dilutive ordinary shares is anti-dilutive.
During the first nine months 2019, the average price of the Company’s shares exceeded the exercise price of the share-settled
Performance Units and therefore 996,543 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 the first nine months 2019, by adding back €5 million of interest expense to the profit for the period attributable to equity owners of the parent and by including 5,022,990 of dilutive
potential ordinary shares.

(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)

In the first nine months 2019, dilution assumes conversion of all potential ordinary shares.

13

1 January 30 September 2020

1 January 30 September 2019

€ (2,686) million
783,012,736€ (3.43)€ 2,191 million
782,717,067€ 2.80Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 202014.

Intangible Assets and Property, Plant and Equipment

Intangible assets decreased by € -197 million to € 16,394 million (prior year-end: € 16,591 million). Intangible assets mainly relate to
goodwill of € 13,017 million (prior year-end: € 13,019 million).
Property, plant and equipment decreased by € -628 million to € 16,666 million (prior year-end: € 17,294 million). Property, plant andequipment include right-of-use assets for an amount of € 1,605 million as of 30 September 2020 (prior year-end: € 1,543 million).

15.

Investments Accounted for under the Equity Method

Investments accounted for under the equity method decreased by € -150 million to € 1,476 million (prior year-end: € 1,626 million).
They mainly include the equity investments in ArianeGroup and MBDA.

16.

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

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

30 September 2020
1,773
1,684
3,457
402
3,859

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

Other investments mainly comprise the Company’s participations. The significant participations at 30 September 2020 include theremaining investment in Dassault Aviation (9.90%, prior year-end: 9.90%) amounting to € 600 million (prior year-end: € 968 million).
In March 2020, OneWeb Communications filed under Chapter 11 of the U.S Bankruptcy Code. Consequently, the related financial
assets were fully impaired, leading to a decrease in the fair value of the equity investment by € -137 million recorded through OCI and a
depreciation of a loan by € -136 million recorded through financial result.
On 3 July 2020, OneWeb entered into an agreement with a consortium led by Her Majesty’s Government HMG and Bharti Global Limited
for the acquisition of the OneWeb business in connection with its court-supervised sale process. The transaction remains subject toregulatory approvals and customary closing conditions and is expected to close by the fourth quarter of 2020.
Other long-term financial assets and the current portion of other long-term financial assets include other loans in the amount of€ 1,848 million as of 30 September 2020 (prior year-end: € 2,036 million), and the sales financing activities in the form of finance leasereceivables and loans from aircraft financing.

17.

Inventories

Inventories of € 36,655 million (prior year-end: € 31,550 million) increased by € +5,105 million. This is driven by Airbus (€ +4,169 million),
mainly due to an increase in stored aircraft reflecting customer requests to defer deliveries, as well as other factors related to the ongoing
COVID-19 pandemic (see "– Note 2: “Impact of the spread of the COVID-19 pandemic”).

18.

Provisions(In € million)

30 September 2020
9,502
11,33920,841
13,760
7,081

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

31 December 2019
8,353
10,561
18,914
12,542
6,372

Provisions for pensions increased mainly due to the decrease of the discount rates in particular for Germany and the UK during the firstnine months 2020 and by the decline in plan assets value resulting from market volatility related to the ongoing COVID-19 pandemic (see"– Note 2: “Impact of the spread of the COVID-19 pandemic”).
Other provisions increased mainly due to the restructuring provision recorded in the first nine months 2020 in response to the COVID19 pandemic. For more details, see "– Note 2: “Impact of the spread of the COVID-19 pandemic”.
14

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

19.

Other Financial Assets and Other Financial Liabilities

Other Financial Assets(In € million)

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

30 September 2020
1,294
38
1,332
1,036
675
434
2,145
3,477

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

30 September 2020
2,121
3,779
361
6,261
2,041
470
122
448
3,081
9,342

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

Other Financial Liabilities(In € million)

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

The Company has signed amendments to the French and Spanish A350 RLI contracts which the World Trade
Organisation ("WTO") considers the appropriate interest rate and risk assessment benchmarks. The WTO has already ruled that RLI is avalid instrument for governments to partner with industry by sharing investment risks. This leads to a re-measurement of the A350 RLI for
an additional net amount of € 236 million, using an equivalent estimated market rate at the date of the amendments.
Overall, the European Governments’ refundable advances decreased by € -28 million to € 4,249 million (prior year-end: € 4,277 million),
mainly due to payments made on the A380 programme offset by the re-measurement described above.
The allocation of European Governments’ refundable advances between non-current and current presented in the Unaudited Condensed
Interim IFRS Consolidated Financial Statements ended 30 September 2020 is based on the applicable contractual repayment dates.

20.

Other Assets and Other Liabilities

Other Assets(In € million)

30 September 2020
361
74
100
535
1,209
636
420
618
2,883
3,418

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

15

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

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

Other Liabilities(In € million)

30 September 2020
375
375
874
2,310
3,184
3,559

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

21.

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

Total Equity

The Company’s shares are exclusively ordinary shares with a par value of € 1.00. The following table shows the development of thenumber of shares issued and fully paid:
30 September 2020
783,173,115
891,6330784,064,748(433,996)
783,630,752(In number of shares)

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

31 December 2019776,367,881
1,784,292
5,020,942
783,173,115(862,610)
782,310,505

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 € 1,914 million (prior year-end:€ 5,975 million) representing a decrease of € -4,061 million. This is due to a net loss for the period of € -2,686 million and a decrease inother comprehensive income, principally related to a change in actuarial gains and losses of € -1,028 million and a revaluation of financial
assets of € -442 million.
The non-controlling interests (“NCI”) from non-wholly owned subsidiaries decreased to € 10 million as of 30 September 2020
(prior year-end: € 15 million). These NCI do not have a material interest in the Company’s activities and cash flows.

22.

Net Cash / (Net Debt)

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

(In € million)

30 September 2020
10,9271,654
5,514
18,095(4,364)(13,973)(242)

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

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

The net debt position on 30 September 2020 amounted to € 242 million (prior year-end: net cash position of € 12,534 million), with a grosscash position of € 18,095 million (prior year-end: € 22,682 million).

Cash and Cash Equivalents
Cash and cash equivalents are composed of the following elements:(In € million)

30 September 2020
3,512
6,903
512
0
10,927

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
16

31 December 2019
1,649
7,014
652
(1)
9,314

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

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.

Financing Liabilities(In € million)

30 September 2020
11,491
1,017
110
1,355
13,973
2,542
219
111
253
1,239
4,364
18,337

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

31 December 2019
6,491
244
156
1,298
8,189
0
106
127
262
1,464
1,959
10,148

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

Long-term financing liabilities, mainly comprising of bonds and lease liabilities, increased by € +5,784 million to € 13,973 million (prioryear-end: € 8,189 million), mainly due to the issuance of two bonds for a total of € 6 billion. The first bond was split into a 5 year-maturity
tranche of € 750 million with a coupon of 1.625%, an 8 year-maturity tranche of € 750 million with a coupon of 2.00% and a 12 yearmaturity tranche of € 1 billion with a coupon of 2.375%.
The second bond was split into a 6 year-maturity tranche of € 1.25 billion with a coupon of 1.375%, a 10 year-maturity tranche of € 1.25
billion with a coupon of 1.625% and a 20 year-maturity tranche of € 1 billion with a coupon of 2.375%.
Short-term financing liabilities increased by € +2,405 million to € 4,364 million (prior year-end: € 1,959 million). The increase in shortterm financing liabilities is mainly related to the issuance of commercial papers and the reclassification of € 1 billion of exchangeablebonds from long-term to short-term due to maturity in June 2021.

23.

Financial Instruments

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

30 September 2020
1,294
675
1,969
(2,121)(2,041)(4,162)(2,193)

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

31 December 2019
996
444
1,440
(2,434)(1,560)(3,994)(2,554)

The total net fair value of derivative financial instruments increased by € +361 million to € -2,193 million (prior year-end: € -2,554 million)
as a result of the weakened US dollar versus the euro associated with the mark to market valuation of the hedge portfolio.
The volume of hedged US dollar-contracts was US$ 86.8 billion as at 30 September 2020 (prior year-end: US$ 97.1 billion). The US dollar
spot rate was 1.17 US$/€ and 1.12 US$/€ at 30 September 2020 and at 31 December 2019, respectively. The average US dollar hedge
rate for the hedge portfolio of the Company increased to 1.25 US$/€ as at 30 September 2020 compared to 1.23 US$/€ as at 31 December
2019.

Carrying Amounts and Fair Values of Financial Instruments
Fair values of financial instruments have been determined with reference to available market information at the end of the reporting period
and the valuation methodologies as described in detail in Note 37.2 to the 2019 IFRS Consolidated Financial Statements. For the firstnine months 2020, the Company has applied the same methodologies for the fair value measurement of financial instruments.

17

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

Carrying amount is a reasonable approximation of fair value for all classes of financial instruments listed in the first table of Note 37.2 tothe 2019 IFRS Consolidated Financial Statements, with the exception of:
30 September 2020
Book Value
Fair Value(In € million)

Financing liabilities
Bonds and commercial papers
Liabilities to financial institutions and others(14,033)(2,696)31 December 2019
Book Value
Fair Value(14,268)(2,696)(6,491)(2,096)(6,696)(2,098)Fair Value Hierarchy
Depending on the extent the inputs used to measure fair values rely on observable market data, fair value measurements may behierarchised according to the following levels of input:Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities;

Level 2: inputs other than quoted prices that are observable for the asset or liability – fair values measured based on Level 2
input typically rely on observable market data such as interest rates, foreign exchange rates, credit spreads or volatilities;

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

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

Level 1

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

30 September 2020
Level 2
Level 3

Total

Level 131 December 2019
Level 2
Level 3

Total

1,341
0
7,168
0
6,903
15,412

0
1,969
0
0
512
2,481

432
0
0
239
0
671

1,773
1,969
7,168
239
7,415
18,5641,988
013,3680
7,014
22,370

0
1,224
0
0
652
1,876

528
216
0
350
0
1,094

2,516
1,440
13,368350
7,666
25,340000(4,160)0(4,160)

(2)
(189)
(191)

(4,162)(189)(4,351)00
0(3,974)0(3,974)(20)(1,014)(1,034)(3,994)(1,014)(5,008)

Written put Commodity
options on
swap
NCI interests agreements(2,300)
(26)
0
0
0
(12)
1,286
0
0
18
0
0
(1,014)
(20)
0
0
0
16
825
0
0
2
0
0
(189)
(2)

Total
(2,326)
0
(12)
1,286
18
0
(1,034)
0
16
825
2
0
(191)

The development of financial instruments of Level 3 is as follows:(In € million)
Balance at 1 January 2019
Business combination
Profit or loss
EquitySettlements
OthersBalance at 31 December 2019
Business combination
Profit or loss
EquitySettlements
OthersBalance at 30 September 2020

Derivatives
165
0
51
0
0
0
216
0
(216)
0
0
0
0

Participations
489
0
0
39
0
0
528
0
0
(96)
0
0
432

Customerfinancing
510
0
(160)
0
0
0
350
0
(111)
0
0
0
239

Total
1,164
0
(109)
39
0
0
1,094
0
(327)
(96)
0
0
671

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. The fair value of these NCI puts are derived from a discounted cash flow analysis using the latest operatingplan and a projection over the lifetime of the A220 programme.
The decrease in the fair value of the NCI puts reflects the acquisition of NCI from Bombardier (see”- Note 4: Acquisitions and Disposals”).
In addition, a post-tax WACC of 10.06% (prior year-end: 7.5%) is used to discount the forecasted cash flows taking into account the
impacts of the COVID-19 pandemic and the specificities of the programme.
18

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

24.

Litigation and Claims

The Company is involved from time to time in various legal and arbitration proceedings in the ordinary course of its business, the mostsignificant of which are described below. Other than as described below, the Company is not aware of any material governmental, legal
or arbitration proceedings (including any such proceedings which are pending or threatened), during a period covering at least the previous
twelve months which may have, or have had in the recent past significant effects on Airbus SE’s or the Company’s financial position or
profitability.
If the Company concludes that the disclosures relative to contingent liabilities can be expected to prejudice seriously its position in a
dispute with other parties, the Company limits its disclosures to the nature of the dispute.

WTO
Although the Company is not a party, the Company is supporting the European Commission in litigation before the WTO. Following its
unilateral withdrawal from the 1992 EU-US Agreement on Trade in Large Civil Aircraft, the US lodged a request on 6 October 2004 to
initiate proceedings before the WTO. 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. On 14 February 2020, the
USTR announced the US is increasing the additional duty rate imposed on aircraft imported from the EU to 15%, effective 18 March 2020.
The tariffs could have a material impact on the financial statements, business and operations of the Company. Duties on the importationof Airbus products into the US could result in (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 the delivery of new aircraft or limit the routes upon which new aircraft will be used, (iv) increased
costs to consumers, (v) retaliation by the EU with its own import duties to be applied to US products, and/or (vi) damage to the Company’sbusiness 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 March 2019, the WTO found that the steps by the
US to address US subsidies to Boeing were inadequate. In October 2020, the WTO announced its decision to authorise the EU to impose
US$ 4 billion in annual countermeasures.
The respective WTO authorisations to impose tariffs will remain valid until the EU or the US prove to the WTO that they are in fullcompliance, or until both parties agree to settle the dispute.

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”). GPT is a UK company that operated in the Kingdom of Saudi Arabia which the Company
acquired in 2007. GPT is now an indirect subsidiary of Airbus Defence and Space. It ceased operations in April 2020.
The SFO’s investigation related to contractual arrangements that had been put in place prior to GPT’s acquisition by the Company, butwhich continued thereafter.
On 29 July 2020, the SFO requisitioned (required) GPT to appear in court, and a series of hearings have followed. The single charge
against GPT relates to alleged historic corruption in the Kingdom of Saudi Arabia between 2007 and 2012. No plea has yet been entered.
For legal reasons, neither the Company nor GPT can comment further on it.
On 31 January 2020 the Company reached a final agreement with investigating authorities in France, the UK and the US in relation to all
wrongdoing alleged against the Company and its controlled subsidiaries, with the exception of the pre-existing and separate investigation
into GPT. The Deferred Prosecution Agreement of 31 January 2020 mentioned below under “Investigation by the UK SFO, France’s PNF,
US Departments of State and Justice and Related Commercial Litigation” is not affected in any way by the prosecution of GPT.

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.

19

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

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. All penalties have been paid, except for $3 million that remains to be paid to the DoS in installments by
28 January 2022.
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.

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

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.

20

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2020

In 2019, the Company self-reported to German authorities potentially improper advance receipt and communication of confidential
customer information by employees of Airbus Defence and Space GmbH. The information concerned relates to two future German
government procurement projects in the programme line Communications, Intelligence and Security. The self-disclosure by the Company
follows an ongoing internal review with the support of an external law firm. Both the German Ministry of Defence and the Munich publicprosecutor opened 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 inGermany 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.

25.

Number of Employees
Airbus80,61980,98530 September 2020
31 December 201926.

Airbus Airbus Defence
Helicopters
and Space
20,12033,332
20,02433,922

Consolidated
Airbus134,071
134,931

Events after the Reporting Date

In October 2020, the WTO announced its decision to authorise the EU to impose US$ 4 billion in annual countermeasures (see “– Note
24: Litigation and Claims”).
On 21 October 2020, the Company has signed a new € 6 billion Revolving Syndicated Credit Facility partially terming out the € 15 billion
credit facility by € 3 billion in order to refinance its existing € 3 billion Revolving Syndicated Facility.

21