Airbus reports strong Full-Year 2018 results, delivers on guidance•Strong 2018 performance, guidance delivered•

Revenues € 64 billion; EBIT Adjusted € 5.8 billion; Free Cash Flow Before M&A andCustomer Financing € 2.9 billion•

EBIT (reported) € 5.0 billion; EPS (reported) € 3.94•

A380 deliveries to cease in 2021•

A400M programme re-baselining negotiated•2018 dividend proposal € 1.65 per share, up 10% from 2017•2019 guidance confirms growth trajectory

Amsterdam, 14 February 2019 – Airbus SE (stock exchange symbol: AIR) reported strong
Full-Year (FY) 2018 consolidated financial results and delivered on its guidance for all key
performance indicators.
“Though 2018 had plenty of challenges for us, we delivered on our commitments with record
profitability thanks to a strong operational performance, particularly in Q4,” said Airbus Chief
Executive Officer Tom Enders. “With an order backlog of around 7,600 aircraft, we intend to
ramp-up aircraft production even further. However, due to the lack of airline demand we haveto wind down production of the A380. This is largely reflected in the 2018 numbers. On
A400M, we succeeded in re-baselining the programme with our government customers andtheir domestic approval processes should conclude in the coming months. All in all, we haveachieved significant de-risking of the A400M in 2018. The strength of last year’sachievements is reflected in our record dividend proposal. In sum, Airbus stands on a solid
growth trajectory and our helicopter, defence and space businesses are also in good shapeas the new management team under my successor Guillaume Faury gets ready to takeover.”
As of 1 July 2018, the A220 aircraft programme has been consolidated into Airbus.
Net commercial aircraft orders totalled 747 (2017: 1,109 aircraft), including 40 A350 XWBs,
27 A330s and 135 A220s. Showing the underlying health of the market, the order backlog
reached an industry record of 7,577 commercial aircraft at year-end, including 480 A220s.(4)Page | 1

Net helicopter orders increased to 381 units (2017: 335 units) with a book-to-bill ratio above
1 in terms of both value and units. Order intake included 15 H160 and 29 NH90 helicopters.
Airbus Defence and Space’s 2018 order intake of around € 8.4 billion included the Eurofighter
for Qatar, four A330 MRTT tanker aircraft and two new generation telecommunication
satellites.
Consolidated order intake(4) in 2018 totalled € 55.5 billion with the consolidated orderbook(4) valued at € 460 billion on 31 December 2018 under IFRS 15.
Consolidated revenues increased to € 63.7 billion (2017: € 59.0 billion(1)), mainly reflecting therecord commercial aircraft deliveries. At Airbus, a total of 800 commercial aircraft weredelivered (2017: 718 aircraft), comprising 20 A220s, 626 A320 Family, 49 A330s, 93 A350s
and 12 A380s. Airbus Helicopters delivered 356 units (2017: 409 units) with revenues stable
year-on-year on a comparable basis despite the lower deliveries. Higher revenues at Airbus
Defence and Space were supported by its Space Systems and Military Aircraft activities.
Consolidated EBIT Adjusted – an alternative performance measure and key indicator
capturing the underlying business margin by excluding material charges or profits caused by
movements in provisions related to programmes, restructurings or foreign exchange impacts
as well as capital gains/losses from the disposal and acquisition of businesses – totalled€ 5,834 million (2017: € 3,190 million(1)), reflecting the strong operational performance andprogramme execution across the Company.
Airbus’ EBIT Adjusted increased to € 4,808 million (2017: € 2,383 million(1)) reflecting thehigher aircraft deliveries. The strong improvement compared to 2017 is driven by progresson the learning curve and pricing for the A350 as well as the A320neo ramp-up and pricing
premium. Currency hedging rates also contributed favourably.
On the A220 programme, the focus remains on commercial momentum, the production
ramp-up and cost reduction. A320neo Family deliveries increased to 386 aircraft (2017: 181
aircraft) and represented over 60% of overall A320 Family deliveries during 2018. The firstlong-range A321LR was delivered in the fourth quarter. Deliveries of the Airbus Cabin Flex
version of the A321 are expected to increase in 2019 although the ramp-up will remainchallenging. Further upgrades of the Pratt & Whitney GTF engine for the A320neo are due toarrive in 2019. Airbus continues to monitor in-service engine performance. Overall, the A320
programme is on track to reach the monthly targeted production rate of 60 aircraft by mid-

Page | 22019 with rate 63 targeted in 2021. On the A330neo programme, the first A330-900s weredelivered and the smaller A330-800 conducted its maiden flight in the final quarter of 2018. In
2019, A330neo deliveries are due to ramp-up. Airbus is working closely with its A330neo
engine partner to deliver on customer commitments.
Following a review of its operations, Emirates is reducing its A380 orderbook by 39 aircraftwith 14 A380s remaining in the backlog yet to be delivered to Emirates. As a consequence of
this decision and given the lack of order backlog with other airlines, deliveries of the A380 willcease in 2021. The recognition of the onerous contract provision as well as other specificprovisions and the remeasurement of the liabilities have led to a negative impact on EBIT of€ -463 million and a positive impact on the other financial result of € 177 million.
A350 deliveries increased compared to 2017 and included 14 of the larger A350-1000s. The
programme reached rate 10 in the fourth quarter of 2018. The backlog supports this rategoing forward, including the latest commercial discussions with Etihad to reduce its A350
order by 42 A350-900, leaving 20 A350-1000 for Etihad in the backlog. Airbus will continue toimprove the A350 programme’s performance to reach breakeven in 2019 and improvemargins beyond this.
Airbus Helicopters’ EBIT Adjusted increased to € 380 million (2017: € 247 million(1)), reflecting
higher Super Puma Family deliveries, a favourable mix and solid underlying programme
execution.
Airbus Defence and Space’s EBIT Adjusted totalled € 935 million (2017: € 815 million(1)),
mainly reflecting solid programme execution.
On the A400M programme, 17 aircraft were delivered during the year (2017: 19 aircraft).
Airbus continued with development activities toward achieving the revised capability
roadmap. Retrofit activities are progressing in line with the customer agreed plan. The
customer Nations are now set to pursue their domestic approval processes. An update of thecontract estimate at completion triggered a net additional charge of € -436 million on the
programme. This mainly reflects the outcome of the negotiations and updated estimates on
the export scenario, escalation and some cost increases. Risks remain on the developmentof technical capabilities and the associated costs, on securing sufficient export orders in time,on aircraft operational reliability in particular with regards to engines, and on cost reductions
as per the revised baseline.

Page | 3

Consolidated self-financed R&D expenses totalled € 3,217 million (2017: € 2,807 million).
Consolidated EBIT (reported) amounted to € 5,048 million (2017: € 2,665 million(1)), including
Adjustments totalling a net € -786 million. These Adjustments comprised:•

The net negative impact of € -463 million related to the A380 programme;•

The net additional charge of € -436 million for the A400M programme;•

A negative € -123 million related to compliance costs;•

A positive € 188 million related to Mergers and Acquisitions, including the sale of Airbus DS
Communications, Inc. business in the first quarter;•

A positive € 129 million relating to the dollar pre-delivery payment mismatch and balance
sheet revaluation;•

A negative € -81 million related to other costs.

Consolidated net income(2) of € 3,054 million (2017: € 2,361 million(1)) and earnings per shareof € 3.94 (2017: € 3.05(1)) included a negative impact from the financial result, mainly driven by
the evolution of the US dollar and revaluation of financial instruments. The other financial result
also included the positive adjustment of € 177 million from the A380. The finance result was€ -763 million (2017: € +1,161 million(1)).
Consolidated free cash flow before M&A and customer financing was stable at € 2,912
million (2017: € 2,949 million) including the A220 dilution, supported by the earnings
performance and record deliveries. Consolidated free cash flow of € 3,505 million (2017:€ 3,735 million) included around € 0.5 billion related to M&A activities. The consolidated net
cash position on 31 December 2018 was stable at € 13.3 billion (year-end 2017: € 13.4 billion)
after the 2017 dividend payment of € 1.2 billion and pension funding of € 2.5 billion, including€ 1.3 billion in the fourth quarter. The gross cash position was € 22.2 billion (year-end 2017:€ 24.6 billion).
The Board of Directors will propose to the Annual General Meeting the payment of a 2018
dividend of € 1.65 per share on 17 April 2019 (2017: € 1.50 per share). This reflects the strengthof the 2018 achievements. The date of record is 16 April 2019.

Page | 4

Outlook
As the basis for its 2019 guidance, the Company expects the world economy and air traffic togrow in line with prevailing independent forecasts, which assume no major disruptions.
The 2019 earnings and Free Cash Flow guidance is before M&A.
•

Airbus targets 880 to 890 commercial aircraft deliveries in 2019.

•

On that basis:
Airbus expects to deliver an increase in EBIT Adjusted of approximately +15% compared
to 2018 and FCF before M&A and Customer Financing of approximately € 4 billion.

About Airbus
Airbus is a global leader in aeronautics, space and related services. In 2018 it generated revenues of € 64 billion
and employed a workforce of around 134,000. Airbus offers the most comprehensive range of passenger
airliners. Airbus is also a European leader providing tanker, combat, transport and mission aircraft, as well as oneof the world’s leading space companies. In helicopters, Airbus provides the most efficient civil and militaryrotorcraft solutions worldwide.
Airbus contacts
Julie KITCHER
Mohamed DENDEN
Nicolas CHRETIEN+33 5 82 05 53 01+33 5 82 05 30 53+33 5 67 19 02 07

julie.kitcher@airbus.com
mohamed.denden@airbus.com
nicolas.n.chretien@airbus.com

Note to editors: Live Webcast of the Analyst Conference Call and Annual Press Conference
At 07:45 CET today, you can listen to the Full-Year 2018 Results Analyst Conference Call with Chief Executive Officer
Tom Enders, Chief Financial Officer Harald Wilhelm and President Airbus Commercial Aircraft Guillaume Faury
via www.airbus.com. The analyst call presentation can also be found on the company website. A recording will be madeavailable in due course. For a reconciliation of Airbus’ KPIs to “reported IFRS” please refer to the analyst presentation.
The Annual Press Conference on the 2018 Results starts at 09:45 a.m. CET and is also webcast live at www.airbus.com.

Page | 5

Airbus Consolidated – Full-Year (FY) Results 2018
(Amounts in Euro)
Airbus Consolidated

FY 2018

FY 2017

ChangeRevenues, in millions

63,70759,022(1)

+8%

9,903

(1)

9,815

+1%

EBIT Adjusted, in millions

5,834

(1)

3,190

+83%

EBIT (reported), in millions

5,048

2,665(1)+89%Research & Development expenses,
in millions

3,217

2,807

+15%

Net Income(2), in millions

3,054

2,361(1)+29%

Earnings Per Share (EPS)

3.94

3.05

+29%

Free Cash Flow (FCF), in millions

3,505

3,735

-

2,991

2,849

-

2,912

2,949

-

Dividend per share(3)

1.65

1.50

+10%

Order intake(4)55,521

N/A

N/A

Order Book(4), in millions
thereof defence, in millions
Net Cash position, in millions

31 Dec2018459,525
39,312
13,28131 Dec2017
N/A
N/A
13,391

Employees

133,671

129,442

thereof defence, in millions

Free Cash Flow
before M&A, in millions
Free Cash Flow before M&A
and Customer Financing, in millions

Airbus Consolidated(1)

Change
N/A
N/A
-1%
+3%

For footnotes please refer to page 11.

Page | 6

By Business
Segment(Amounts in millions ofEuro)AirbusAirbus Helicopters
Airbus Defence andSpaceTransversal &Eliminations
Total
By Business
Segment

Revenues
FY2018
47,970FY
2017(1)
43,486

5,934

EBIT (reported)

+10%

FY
2018
4,295

FY
2017(1)
2,257

6,335

-6%

366

247

+48%

11,063

10,596

+4%

676

462

+46%

-1,260-1,395

-

-289

-301

-

63,70759,022

+8%

5,048

2,665

+89%

ChangeFY2018

FY2017(1)

ChangeAirbus

4,808

2,383

+102%

Airbus Helicopters
Airbus Defence andSpaceTransversal &Eliminations

380

247

+54%

935

815

+15%

-289

-255

-

5,834

3,190

+83%

By Business
Segment

Airbus, in units
Airbus, in millions ofEuroAirbus Helicopters,in units
Airbus Helicopters,in millions of Euro
Airbus Defence andSpace, in millions of
Euro

+90%

EBIT Adjusted(Amounts in millions of
Euro)

Total

ChangeOrder Intake (net)

Order Book

FY
2018

FY
2017

Change31 Dec2018(4)31 Dec2017

Change

747

1,109

-33%

7,577

7,265

+4%

41,519

N/A

N/A

411,659

N/A

N/A

381

335

+14%

717

692

+4%

6,339

N/A

N/A

14,943

N/A

N/A

8,441

N/A

N/A

35,316

N/A

N/A

For footnotes please refer to page 11.

Page | 7

Airbus Consolidated – Fourth Quarter (Q4) Results 2018
(Amounts in Euro)
Airbus Consolidated

Q4 2018

Q4 2017(1)ChangeRevenues, in millions

23,28621,015+11%

EBIT Adjusted, in millions

3,096

1,982

+56%

EBIT (reported), in millions

2,365

992

+138%

(2)

Net Income , in millions

1,601

963

+66%

Earnings Per Share (EPS)

2.06

1.24

+66%

By Business
Segment

Revenues

EBIT (reported)(Amounts in millions of
Euro)

Q4
2018

Q4
2017(1)

ChangeQ42018

Q42017(1)

ChangeAirbus17,492

15,907

+10%

2,057

1,478

+39%

Airbus Helicopters
Airbus Defence andSpaceTransversal &Eliminations

2,179

2,138

+2%

187

86

+117%

4,012

3,544

+13%

197

-427

-

-397

-574

-

-76

-145

-

Total

23,28621,015

+11%

2,365

992

+138%

By Business Segment

EBIT Adjusted(Amounts in millions of Euro)

Q4
2018

Q4
2017(1)

ChangeAirbus

2,468

1,577

+56%

Airbus Helicopters

178

86

+107%

Airbus Defence and Space

526

418

+26%

Transversal & Eliminations

-76

-99

-

Total

3,096

1,982

+56%

For footnotes please refer to page 11.

Page | 8

Q4 2018 revenues increased by 11%, mainly driven by higher commercial aircraft deliveries
and higher revenues at Airbus Defence and Space.
Q4 2018 EBIT Adjusted increased by 56%, mainly driven by progress on the A350 XWB
programme, A320 ramp-up, and favourable foreign exchange.
Q4 2018 EBIT (reported) increased by 138% to € 2,365 million. It reflected net negative
Adjustments of € -731 million booked in the quarter. Net Adjustments in the fourth quarter of2017 amounted to a net € -990 million.
Q4 2018 Net Income increased 66% mainly driven by the higher EBIT. It was lowered by thefinance result of € -350 million from the evolution of the US dollar and revaluation of financial
instruments. In Q4 2017, the finance result was positive at € 1,060 million.

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

FY 2018

EBIT (reported), in millions of Euro

5,048

thereof:A380, in millions of Euro

-463

A400M provision, in millions of Euro
Compliance costs, in millions ofEuroMergers and acquisitions, inmillions of Euro$ PDP mismatch/Balance Sheet
revaluation, in millions of Euro
Others, in millions of Euro

-436

+188

EBIT Adjusted, in millions of Euro

5,834

-123

+129
-81

Page | 9

Glossary
KPI
EBIT

DEFINITION
The Company continues to use the term EBIT (Earnings before interest and taxes). It is
identical to Profit before finance result and income taxes as defined by IFRS Rules.

Adjustment

Adjustment, 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

The Company uses an alternative performance measure, EBIT Adjusted, as a key
indicator capturing the underlying business margin by excluding material charges or profits
caused by movements in provisions related to programmes, restructurings or foreignexchange impacts as well as capital gains/losses from the disposal and acquisition ofbusinesses.

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 20 of the Analyst presentation.

Gross cash

The Company defines its consolidated gross cash position as the sum of (i) cash and cash

positionequivalents and (ii) securities (as all recorded in the consolidated statement of financial
position).

Net cash

For definition of the alternative performance measure net cash position, see Registration

position

Document, MD&A section 2.1.6.1.

FCF

For the definition of the alternative performance measure free cash flow, see Registration
Document, MD&A section 2.1.6.1. It is a key indicator 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 2.1.6.1. adjusted for net proceeds from disposals andacquisitions. It is an alternative performance measure and key indicator that reflects free
cash flow excluding those cash flows resulting from acquisitions and disposals of
businesses..

FCF before M&AFree cash flow before M&A and customer financing refers to free cash flow before mergers

and customer

and acquisitions adjusted for cash flow related to aircraft financing activities. It is anfinancingalternative performance measure and indicator that may be used from time to time by theCompany in its financial guidance, esp. when there is higher uncertainty around customer
financing activities, such as during the suspension of ECA financing support.

Page | 10

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 the merger of Headquarters into Airbus. Where applicable, ‘Airbus’ refers tocommercial aircraft and the integrated 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 to equity owners of the parent as defined by IFRS Rules.

3)

To be proposed to the Annual General Meeting on 10 April 2019.

4)

The order backlog and order intake is measured under IFRS 15. The unit backlog reflects thecontractual view. The backlog value now reflects the assessment of recoverability and net
transaction price on airframe and engine. The 2017 backlog is not being restated.

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 anddelivery schedules, introduction of new products and services and market expectations, as well as statements
regarding future performance and outlook.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events andcircumstances and there are many factors that could cause actual results and developments to differ materiallyfrom those expressed or implied by these forward-looking statements.
These factors include but are not limited to:













Changes in general economic, political or market conditions, including the cyclical nature of some of Airbus’
businesses;
Significant disruptions in air travel (including as a result of terrorist attacks);
Currency exchange rate fluctuations, in particular between the Euro and the U.S. dollar;
The successful execution of internal performance plans, including cost reduction and productivity efforts;
Product performance risks, as well as programme development and management risks;
Customer, supplier and subcontractor performance or contract negotiations, including financing issues;Competition and consolidation in the aerospace and defence industry;
Significant collective bargaining labour disputes;
The outcome of political and legal processes including the availability of government financing for certain
programmes and the size of defence and 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 insuch forward-looking statements.
For a discussion of factors that could cause future results to differ from such forward-looking statements, see theAirbus 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 notprecisely reflect the absolute figures.
IFRS 15
The Company has adopted the IFRS 15 standard as of 1 January 2018. 2017 figures are pro-forma, amended
with IFRS 15 restatement and new segment reporting.

Page | 11