Unaudited Condensed Interim
IFRS Consolidated Financial Information of Airbus SE
for the nine-month period ended 30 September 2017
Unaudited Condensed Interim IFRS Consolidated Income Statements .................................................................. 2
Unaudited Condensed Interim IFRS Consolidated Income Statements for the third quarter of 2017 and 2016 ...... 3
Unaudited Condensed Interim IFRS Consolidated Statements of Comprehensive Income .................................... 4
Unaudited Condensed Interim IFRS Consolidated Statements of Comprehensive Income for the third quarter of2017 and 2016......................................................................................................................................................... 5
Unaudited Condensed Interim IFRS Consolidated Statements of Financial Position .............................................. 6
Unaudited Condensed Interim IFRS Consolidated Statements of Cash Flows ....................................................... 7
Unaudited Condensed Interim IFRS Consolidated Statements of Changes in Equity ............................................. 8
Notes to the Unaudited Condensed Interim IFRS Consolidated Financial Statements as at 30 September 2017 .. 91.

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

Accounting policies .................................................................................................................................... 93.

Acquisitions and disposals ...................................................................................................................... 11

4.

Related party transactions ....................................................................................................................... 11

5.

Segment information ............................................................................................................................... 12

6.

Revenues, gross margin and profit before finance result and income taxes ........................................... 14

7.

Finance result .......................................................................................................................................... 15

8.

Income tax ............................................................................................................................................... 15

9.

Earnings per share .................................................................................................................................. 15

10.

Intangible assets and property, plant and equipment .............................................................................. 16

11.

Investments accounted for under the equity method ............................................................................... 16

12.

Other investments and other long-term financial assets .......................................................................... 16

13.

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

14.

Other financial assets and other financial liabilities ................................................................................. 17

15.

Other assets and other liabilities.............................................................................................................. 18

16.

Total equity .............................................................................................................................................. 18

17.

Provisions ................................................................................................................................................ 19

18.

Cash flows, securities and financing liabilities ......................................................................................... 19

19.

Financial instruments............................................................................................................................... 20

20.

Litigation and claims ................................................................................................................................ 22

21.

Number of employees ............................................................................................................................. 25

22.

Subsequent events .................................................................................................................................. 25

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

Unaudited Condensed Interim IFRS Consolidated Income Statements

Note

1 January 30 September 2017
In € million
In %1 January 30 September 2016
In € million
In %642,953100

42,705100

248-38,015-89-38,939

-91

924

4,938

11

3,766

9

1,172

Selling, administrative and other expenses-1,923-4-1,895-5-28

Research and development
expenses-1,918-4-2,015

-5

97

916

2

2,422

6

-1,506

299

0

78

0

221

2,312

5

2,356

5

-44

Interest income

134

0

186

0

-52

Interest expense

-385

-1

-389

-1

4

Revenues
Cost of sales
Gross margin

Other income

6

6

Share of profit from investments
under the equity method and otherincome from investments
Profit before finance result
and income taxes

6

Other financial result

ChangeIn € million

343

1

-139

0

482

Finance result

7

92

0

-342

-1

434

Income taxes

8

-553

-1

-204

0

-349

1,851

4

1,810

4

41

1,851

4

1,811

4

40

0

0

-1

0

1

Profit for the period
Attributable to:Equity owners of the parent(Net income)Non-controlling interests

€

€

€

Basic

2.39

2.34

0.05

Diluted

2.38

2.33

0.05

Earnings per share

9

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 2017

Unaudited Condensed Interim IFRS Consolidated Income Statements
for the third quarter of 2017 and 2016

Note
Revenues

1 July 30 September 2017
In € million
In %6

Cost of sales
Gross margin

6

Selling, administrative and other expenses
Research and development
expenses
Other income

6

Share of profit from investments
under the equity method and otherincome from investments
Profit before finance result
and income taxes

6

1 July 30 September 2016
In € million
In %ChangeIn € million

14,244100

13,950100

294-12,674-89-12,296

-88

-378

1,570

11

1,654

12

-84

-601

-4

-603

-4

2

-630

-4

-706

-5

76

129

1

68

0

61

53

0

92

1

-39

521

4

505

4

16

Interest income

53

0

49

0

4

Interest expense

-134

-1

-155

-1

21

Other financial result

107

1

-88

-1

195

Finance result

7

26

0

-194

-2

220

Income taxes

8

-199

-2

-262

-2

63

348

2

49

0

299

Equity owners of the parent(Net income)

348

2

50

0

298

Non-controlling interests

0

0

-1

0

1

Profit for the period
Attributable to:

€

€

€

Basic

0.45

0.06

0.39

Diluted

0.45

0.07

0.38

Earnings per share

9

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 2017

Unaudited Condensed Interim IFRS Consolidated Statements of Comprehensive
Income(In € million)
Profit for the period

1 January 30 September 2017

1 January 30 September 2016

1,851

1,810

314

-2,171

Items that will not be reclassified to profit or loss:
Remeasurement of the defined benefit pension plans
Share of remeasurement of the defined benefit pension plansfrom investments accounted for under the equity method

11

-62

Income tax relating to items that will not be reclassified

-92

605

Items that may be reclassified to profit or loss:
Foreign currency translation differences for foreign operations

-404

-420

Change in fair value of cash flow hedges

9,342

2,974

Change in fair value of available-for-sale financial assets

350

-49

Share of changes in other comprehensive income
from investments accounted for under the equity method

-21

-35

Income tax relating to items that may be reclassified-2,546-908

Other comprehensive income, net of tax

6,954

-66

Total comprehensive income of the period

8,805

1,744

Equity owners of the parent

8,773

1,721

Non-controlling interests

32

23

Attributable to:

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

4

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

Unaudited Condensed Interim IFRS Consolidated Statements of Comprehensive
Income for the third quarter of 2017 and 2016
(In € million)
Profit for the period

1 July 30 September 2017

1 July 30 September 2016

348

49

-48

-460

Items that will not be reclassified to profit or loss:
Remeasurement of the defined benefit pension plans
Share of remeasurement of the defined benefit pension plansfrom investments accounted for under the equity method

6-56

Income tax relating to items that will not be reclassified

21

109

Items that may be reclassified to profit or loss:
Foreign currency translation differences for foreign operations

-90

-136

2,596

934

Change in fair value of available-for-sale financial assets

221

92

Share of changes in other comprehensive income
from investments accounted for under the equity method-8-8Income tax relating to items that may be reclassified

-592

-282

Other comprehensive income, net of tax

2,106

193

Total comprehensive income of the period

2,454

242

2,447

234

7

8

Change in fair value of cash flow hedges

Attributable to:Equity owners of the parent
Non-controlling interests

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

5

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

Unaudited Condensed Interim IFRS Consolidated Statements of Financial Position

AssetsNon-current assets
Intangible assets
Property, plant and equipment
Investments accounted for under the equity method
Other investments and other long-term
financial assets
Non-current other financial assets
Non-current other assets
Deferred tax assets
Non-current securities
Current assets
Inventories
Trade receivables
Current portion of other long-term financial assets
Current other financial assets
Current other assets
Current tax assets
Current securities
Cash and cash equivalents
Assets and disposal groups of assets
classified as held for sale
Total assets

Note

30 September 2017
In € million In %31 December 2016
In € million In %ChangeIn € million

In %

10
10
11

11,65816,549
1,549

10
15
1

12,06816,918
1,608

11
15
2

-410
-369
-59

-3
-2
-4

12
14
15

4,327
2,551
2,323
5,700
10,07154,728

4
2
2
5
9
48

3,655
976
2,358
7,557
9,897
55,037

3
1
2
7
9
50

672
1,575
-35
-1,857
174
-309

18
161
-1
-25
2
-1

35,443
8,043
516
1,712
3,278
883
1,317
6,592
57,784

31
7
0
2
3
1
1
6
51

29,688
8,101
522
1,257
2,576
1,110
1,551
10,14354,948

27
7
1
1
2
1
1
9
49

5,755
-58
-6
455
702
-227
-234
-3,551
2,836

19
-1
-1
36
27
-20
-15
-35
5

951
113,463

1
100

1,148
111,133

1
100

-197
2,330

-17
2

775
8,883
1,844
-3
11,4990
11,499

1
7
2
0
10
0
10

773
7,732
-4,845
-3
3,657
-5
3,652

0
7
-4
0
3
0
3

2
1,151
6,689
0
7,842
5
7,847

0
15
-138
0
214
-100
215

17
18
14
15

10,391
9,514
8,374
16,8852,143
47,307

9
9
7
15
2
42

10,826
8,791
13,313
16,567
1,292
50,789

10
8
12
15
1
46

-435
723
-4,939318
851-3,482

-4
8
-37
2
66
-7

17
18

5,228
1,748
12,192
1,278
2,751
30,98754,184

5
1
11
1
2
28
48

6,143
1,687
12,532
1,126
5,761
28,45255,701

5
2
11
1
5
26
50

-915
61
-340
152
-3,0102,535-1,517

-15
4
-3
13
-52
9
-3

18

13
12
14
15
18
18

3

Total equity(1)Equity attributable to equity owners of the parent
Capital stockReserves
Accumulated other comprehensive income
Treasury shares
Non-controlling interests
16
Liabilities
Non-current liabilities
Non-current provisions
Long-term financing liabilities
Non-current other financial liabilities
Non-current other liabilities
Deferred tax liabilities
Current liabilities
Current provisions
Short-term financing liabilities
Trade liabilities
Current tax liabilities
Current other financial liabilities
Current other liabilities

14
15

Disposal groups of liabilities
classified as held for sale
3
473
0
991
1
-518
-52
Total liabilities
101,96490
107,48197-5,517-5
Total equity and liabilities
113,463100
111,1331002,3302(1) As of 30 September 2017, the accumulated other comprehensive income, previously classified within equity relating toassets and disposal groups classified as held for sale, amounts to €-72 million.
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 2017

Unaudited Condensed Interim IFRS Consolidated Statements of Cash Flows
1 January 30 September 2017

1 January 30 September 2016

1,851

1,811

0

-1

Depreciation and amortization

1,603

1,580

Valuation adjustments

-400

263

15

-560

(In € million)

Note

Profit for the period attributable to equity owners of the parent (Net income)
Profit (loss) for the period attributable to non-controlling interests
Adjustments to reconcile profit for the period to cash provided by operating activities

Deferred tax expense (income)Change in income tax assets, income tax liabilities and provisions for income tax

383

343

Results on disposals of non-current assets-770-1,829Results of companies accounted for under the equity method

-198

-66

Change in current and non-current provisions

-473

206

Reimbursement from / contribution to plan assets-171-4,459-203-3,576-2,619-2,032-1,655-1,990Change in other operating assets and liabilities
Cash (used for) operating activities

18

Investment activities- Purchases of intangible assets, PPE- Proceeds from disposals of intangible assets, PPE

113

36

0

-120

- Proceeds from disposals of subsidiaries (net of cash)

740

731

- Payments for investments in associates and otherinvestments and long-term financial assets

-633

-502

- Proceeds from disposals of associates and otherinvestments and long-term financial assets

479

102

- Dividends paid by companies valued at equity

20

19

Disposal of assets, liabilities and disposal groups classified as held for sale

0

1,527

- Acquisitions of subsidiaries and joint ventures (net of cash)

Change in securities

-39

589

-975

392

Financing activities
Change in long-term and short-term financing liabilities

1,549

2,422

Cash distribution to Airbus SE shareholders-1,043-1,008Dividends paid to non-controlling interests-4-2

Changes in capital and non-controlling interests

79

54

Share buyback

0

-736

Cash (used for) provided by investing activities

18

Cash provided by financing activities

18

581

730

Net (decrease) of cash and cash equivalents-305-3,318-52-962

Cash and cash equivalents at beginning of period (1)10,160

6,677

Cash and cash equivalents at end of period

6,842

5,715

Thereof presented as cash and cash equivalents

6,592

5,694

Thereof presented as part of disposal groups classified as held for sale

250

21

Effect of foreign exchange rate changes on cash and cash equivalents(1) The cash and cash equivalents at the beginning of the period 2017 include €17 million, which is presented as part of assets
of disposal groups classified as held for sale.
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 2017

Unaudited Condensed Interim IFRS Consolidated Statements of Changes in Equity(In € million)
Balance at 1 January 2016
Profit for the period
Other comprehensive income
Total comprehensive income
Cash distribution to shareholders / dividends
to non-controlling interests
Capital increase
Equity transactions

Equityattributable
to equity ownersof the parent

Non-controllinginterests

5,966

7

Total
5,973

1,811

-1

1,810

-90

24

-66

1,721

23

1,744

-1,008-2-1,010

54

0

54

39

-20

19

-513

0

-513

Share-based payment (IFRS 2)

29

0

29

Balance at 30 September 2016

6,288

8

6,296

Balance at 1 January 2017

3,657

-5

3,652

Profit for the period

1,851

0

1,851

Other comprehensive income

6,922

32

6,954

Total comprehensive income
Cash distribution to shareholders / dividends tonon-controlling interests
Capital increase

8,773

32

8,805

-1,043-4-1,04779

079

Equity transactions (IAS 27)

0

-23

-23

Share-based payment (IFRS 2)

33

0

33

Balance at 30 September 2017

11,4990

11,499Change in treasury shares

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

8

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

Notes to the Unaudited Condensed Interim IFRS Consolidated Financial Statements as
at 30 September 2017
1. The Company
The accompanying Unaudited Condensed IFRS Consolidated Financial Statements present the financial position
and the results of operations of Airbus SE (the “Company”) and its subsidiaries, a European public limited-liability
company (Societas Europaea) with its seat (statutaire zetel) in Amsterdam, The Netherlands, its registeredaddress at Mendelweg 30, 2333 CS Leiden, The Netherlands, and registered with the Dutch Commercial Register(Handelsregister) under number 24288945, and are prepared and reported in euro (“€”). On 1 January 2017, theCompany has been further integrated by merging its Group structure with the commercial aircraft activities ofAirbus, with associated restructuring measures. On 12 April 2017, the Company changed its name from Airbus
Group SE to Airbus SE, following approval at the Annual General Meeting. Therefore, the Company together
with its subsidiaries is referred to as “Airbus” and no longer the “Group”, and the segment formerly known as
Airbus is referred to as “Airbus Commercial Aircraft”. In this new set-up, Airbus retains Airbus Helicopters andAirbus Defence and Space as Divisions. During 2017, Airbus will continue to report under the existing reportablesegments. Airbus’ core business is the manufacturing of commercial aircraft, civil and military helicopters,commercial space launch vehicles, missiles, military aircraft, satellites, defence systems and defence electronics
and rendering of services related to these activities. The Unaudited Condensed IFRS Consolidated Financial
Statements for the nine-month period ended 30 September 2017 were authorised for issue by the Company
Board of Directors on 30 October 2017.

2. Accounting policies
The Unaudited Condensed Interim Consolidated Financial Statements have been prepared in accordance with
International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board(“IASB”) as endorsed by the European Union (“EU”) as at 30 September 2017.
These Unaudited Condensed Interim Consolidated Financial Statements are prepared in compliance with IAS 34
and should be read in conjunction with Airbus’ Consolidated Financial Statements as of 31 December 2016.
Airbus’ accounting policies and methods are unchanged compared to 31 December 2016.
Use of estimates and judgment
In preparing Airbus’ Unaudited Condensed Interim Consolidated Financial Statements, Airbus’ management
makes assumptions and estimates. The underlying assumptions used for the main estimates are similar to thosedescribed in Airbus’ Consolidated Financial Statements as of 31 December 2016. These estimates are revised if
the underlying circumstances have evolved or in light of new information.
The only exception is 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.

9

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

IFRS 15 “Revenue from contracts with customers”
As indicated in the Consolidated Financial Statements as at 31 December 2016, IFRS 15 will replace the current
revenue recognition standards.
Airbus will adopt the new standard on 1 January 2018, using the full retrospective transition method. Accordingly,
the comparative 2017 results included in the 2018 financial statements will be restated, and equity will be
adjusted as of 1 January 2017. Airbus will elect practical expedients for completed contracts and contract
modifications.
Impacts on current revenue from construction contracts
Airbus has compared its current accounting policies and practices to the requirements of the new standard. As aresult of this analysis, Airbus expects that the adoption of IFRS 15 will have a significant impact on the timing ofrevenue recognition on certain long-term construction contracts that are currently accounted for under IAS 11.
The most significant changes will result from the following:Several performance obligations will be identified instead of recognising one single contract margin under
IAS11 (e.g. A400M, Tiger Programme). In some cases, the over time revenue recognition criteria are notfulfilled under IFRS 15. In particular, on A350 launch contracts, on A400M series production and certain
NH90 contracts, revenue and production costs relative to the manufacture of aircraft will hence berecognised at the delivery of the aircraft to the customer.

Measurement of the revenue will take into consideration variable consideration constraints in order toachieve high likelihood that a significant reversal of the recognised revenue will not occur in the future.



The measure of the progress towards complete satisfaction of a performance obligation satisfied over time
will be based on inputs (i.e. cost incurred) rather than on outputs (i.e. milestones achieved). On Airbus
current long-term construction contracts progress is usually measured based on milestones achieved. Under
IFRS 15, Airbus will measure progress of work performed using a cost-to-cost approach, whenever controlof the work performed transfers to the customer over time.

Impacts on current revenue from the sale of commercial aircraft
With respect to the commercial aircraft business, other than sales made under the A350 launch contracts
described above, IFRS 15 will not change the timing of recognising revenue, which will continue to be recognised
when the customer takes delivery of the aircraft.
The detailed analysis of the impacts on the financial statements and backlog are ongoing. Airbus is completing
the restatement of the opening financial position. Airbus will provide a comprehensive and bottom-up quantitative
assessment relative to IFRS 15 implementation impacts in its year-end 2017 financial statements.
Airbus will continue to work in 2017 on the quantification of transition effects and on the design andimplementation of internal procedures to apply the new requirements.

10

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

3. Acquisitions and disposals
On 28 February 2017, Airbus sold its defence electronics business, a leading global provider of mission-criticalsensors, integrated systems and services for premium defence and security applications mainly based in Ulm(Germany), to affiliates of KKR & Co. L.P. (the acquirer), a leading global investment firm. The German defence
electronics business was sold for €823 million, Airbus Defence and Space recognised a net gain on sale of €604
million. The closing for the French defence electronics business will occur after full separation of the businesssold from Airbus other business activities and is expected to take place in 2018. The divestment is part of thestrategic review of the Airbus Defence and Space business portfolio. The assets and liabilities of this company
were classified as a disposal group held for sale as of 31 December 2016.
With respect to extending security clearance for the Airbus Defence and Space business, Airbus made a 25.1%
reinvestment into Hensoldt Holding Germany GmbH, a subsidiary of the acquirer which now holds the transferredbusiness. The reinvestment took the form of an equity investment of €6 million and a shareholder loan of €109
million. In addition, the reinvestment agreement provides for a combined put/call option mechanism which is
subject to full separation being achieved and will then allow the acquirer to take over Airbus’ equity investment
and shareholder loan at a pre-determined price at any time, and Airbus to sell them to the acquirer at that priceafter three years.
The purchase price allocation of the Navtech Inc. Group (“Navtech”) ended on 9 March 2017. No adjustment
was made on the goodwill which amounts to €104 million.
Airbus Safran Launchers (“ASL”) transaction finalised over the first half-year 2017 with a final agreement on
Airbus contribution balance sheet leading to €52 million additional capital gain on the period. The purchase priceallocation was completed as of 30 June 2017.
Assets and disposal groups classified as held for sale
As of 30 September 2017, Airbus accounted for assets and disposal groups of assets classified as held forsale in the amount of €951 million (prior year-end: €1,148 million). Disposal groups of liabilities classified asheld for sale as of 30 September 2017 amount to €473 million (prior year-end: €991 million). These amounts
comprise mainly the disposal group of assets and liabilities of Vector Aerospace Holding SAS (“Vector”).
On 5 July 2017, StandardAero Aviation Holdings, Inc. (“StandardAero”) and Airbus entered into exclusive
negotiations with respect to an acquisition by StandardAero of Vector from Airbus. Vector is a global aerospace
maintenance, repair and overhaul company, providing quality support for turbine engines, components, and fixed
and rotary-wing aircraft. It generated revenues of €638 million in 2016 and employs approximately 2,200 people in
22 locations. On 17 October 2017, the parties have signed a sale purchase agreement which will be closed during
the last quarter 2017.

4. Related party transactions
Airbus has entered into various transactions with related entities that have all been carried out in the normal
course of business.
Airbus participates in the UK in several funded trustee-administered pension plans, some of which have BAE
Systems as principal employer.

11

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

5. Segment information
Airbus operates in three reportable segments which reflect the internal organizational and management structure
according to the nature of the products and services provided.


Airbus Commercial Aircraft (formerly Airbus) — Development, manufacturing, marketing and sale ofcommercial jet aircraft of more than 100 seats; aircraft conversion and related services; development,
manufacturing, marketing and sale of regional turboprop aircraft and aircraft components.

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



Airbus Defence and Space — Military combat aircraft and training aircraft; provision of defence electronics
and of global security market solutions such as integrated systems for global border security and securecommunication solutions and logistics; training, testing, engineering and other related services;development, manufacturing, marketing and sale of missile systems; development, manufacturing,marketing and sale of satellites, orbital infrastructures and launchers; provision of space related services;development, manufacturing, marketing and sale of military transport aircraft and special mission aircraft
and related services.

The following table presents information with respect to the Airbus’ business segments. As a rule, inter-segment
transfers are carried out on an arm’s length basis. Inter-segment sales predominantly take place between Airbus
Commercial Aircraft and Airbus Defence and Space and between Airbus Helicopters and Airbus Commercial
Aircraft. The holding function of Airbus’ Headquarters, the Airbus Bank and other activities not allocable to thereportablesegments,

combined

togetherwith

consolidation“Other/HQ/Conso.”.

12

effects,aredisclosedinthecolumnAirbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

Business segment information for the nine-month period ended 30 September 2017:(In € million)
Total revenues
Internal revenues

AirbusCommercial
Aircraft

AirbusHelicopters

AirbusDefenceand SpaceTotal
segments

Other/
HQ/Conso.

Consolidated

32,643

4,388

6,733

43,76435

43,799

-419

-367

-58

-844

-2

-846

Revenues

32,224

4,021

6,675

42,92033

42,953

Research anddevelopment expenses-1,368-205-220-1,793-125-1,918

Profit before financeresult and income taxes

1,518

165

900

2,583

-271

2,312

Finance result

92

Income taxes-553

Profit for the period

1,851

Business segment information for the nine-month period ended 30 September 2016:
AirbusCommercial
Aircraft

AirbusHelicopters

AirbusDefenceand SpaceTotal
segments

Other/
HQ/Conso.

Consolidated

Total revenues

31,511

4,282

7,714

43,50736

43,543

Internal revenues

-393

-358

-85

-836

-2

-838

Revenues

31,118

3,924

7,629

42,671

34

42,705

Research anddevelopment expenses-1,479-226-237-1,942-73-2,015

Profit before financeresult and income taxes

773

200

579

1,552

804

2,356

(In € million)

Finance result-342

Income taxes-204

Profit for the period

1,810

13

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

6. Revenues, gross margin and profit before finance result and income taxes
Revenues of €42,953 million (first nine months 2016: €42,705 million) are broadly stable compared to previous
year. The increase at Airbus Commercial Aircraft (€+1,132 million), mostly driven by a favourable foreignexchange impact, was partially offset by a decrease in Airbus Defence and Space (€-981 million), primarily due toperimeter changes.
The gross margin increased by €+1,172 million to €4,938 million compared to €3,766 million in the first ninemonths 2016, mainly at Airbus Defence and Space and Airbus Commercial Aircraft, principally due to a lower net
charge related to the A400M (€150 million, compared to first nine months 2016 €1,026 million) and the A350 XWB
programmes (€0 million, compared to first nine months 2016 €385 million), respectively. The gross margin rateincreased from 8.8% to 11.5%.
In the first nine months 2017, Airbus Commercial Aircraft has delivered 50 A350 XWB aircraft. Order cancellations
to the end of September 2017 have been reflected in the financial statements.
The industrial ramp-up is progressing and associated risks continue to be closely monitored in line with theschedule, aircraft performance and overall cost envelope, as per customer’s commitment. Despite the progress
made, challenges remain with recurring cost convergence as the ramp-up accelerates.
12 A400M aircraft were delivered during the first nine months 2017. In total, 50 aircraft have been delivered to thecustomer as of 30 September 2017.
Industrial efficiency and military capabilities remain a challenge for the A400M programme. In the first ninemonths 2017, Airbus continued with development activities toward achieving the revised capability roadmap,
however achievement of contractual technical capabilities remains highly challenging.
As a result of the 2016 detailed contract reviews, Airbus Defence and Space had recorded a charge of €2,210
million (thereof €1,026 million in the first half-year 2016). In the third quarter 2017, a short term production
adaptation has been initiated. All other operational and commercial assumptions that underpinned the 2016 detailcontract reviews remain current best management assessment as at 30 September 2017. The update of theprovision during the first nine months 2017 reflects price escalation and cash impacts of current year deliveries aswell as the consequences of the production adaptation, leading to a charge of €150 million.
Given the order of magnitude on the cumulative programme loss, the Board of Directors mandated the
management in February 2017 to re-engage with customers to cap the remaining exposure. Related discussions
with the customer are in progress. Challenges remain on development of contractual technical capabilities andthe associated costs, on securing sufficient export orders in time, on cost reductions and commercial exposure,which could all impact significantly the programme.
The A400M contractual SOC 1, SOC 1.5 and SOC 2 milestones remain to be achieved. SOC 1 fell due end
October 2013, SOC 1.5 fell due end December 2014, and SOC 2 end of December 2015. The associatedtermination rights became exercisable by OCCAR on 1 November 2014, 1 January 2016, and 1 January 2017,
respectively. Management judges that it is highly unlikely that any of these termination rights will be exercised.
The profit before finance result and income taxes decreased by €-44 million to €2,312 million compared to€2,356 million in the first nine months 2016, mainly driven by a decrease in other income, partly offset by theincrease in gross margin and share of profit from investments under the equity method and other income frominvestments.

14

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

Other income decreased by €-1,506 million to €916 million compared to €2,422 million in the first nine months
2016, which included the capital gain of €1,139 million following the creation of ASL and the disposal of Dassault
Aviation shares. In the first nine months 2017, it includes the capital gain from the sale of the defence electronics
business and the completion of the allocation of the purchase price of ASL (see Note 3 “Acquisitions anddisposals”).

7. Finance result
Finance result improved by €+434 million to €92 million compared to €-342 million in the first nine months 2016.
This is mainly related to a positive impact from both foreign exchange valuation of monetary items of €+266
million and the revaluation of financial instruments of €+197 million.

8. Income tax
The income tax expense of €-553 million (first nine months 2016: €-204 million) corresponds to an effective tax
rate of 23.0% (first nine months 2016: 10.1%). These effective tax rates were impacted by transactions taxed at
reduced rates, relating to the disposal of the defence electronics business in the first nine months 2017, and thesale of shares of Dassault Aviation and the creation of ASL, in the first nine months 2016. Without these impacts,
the effective tax rate would be approximately 28%.

9. Earnings per share

1 January 30 September 2017

1 January 30 September 2016

Profit for the period attributable to equity owners of the parent(Net income)€1,851 million€1,811 million

Weighted average number of ordinary shares outstanding

773,574,878

774,211,224

€2.39

€2.34

Basic earnings per share

Basic earnings per share

Diluted earnings per share – Airbus’ categories of dilutive potential ordinary shares are share-settled
Performance Units relating to Long-Term Incentive Plans and the convertible bond issued on 1 July 2015. In
2016, it also included the last Stock Option Plan (“SOP”) which expired in December 2016. During the firstnine months 2017, the average price of the Company’s shares exceeded the exercise price of the share-settled
Performance Units and therefore 492,217 shares (first nine months 2016: 282,203 shares) were considered in thecalculation of diluted earnings per share. The dilutive effect of the convertible bond was also considered in thecalculation of diluted earnings per share in the first nine months 2017, by adding back €5 million of interest
expense to the profit for the period attributable to equity owners of the parent (first nine months 2016: €5 million)
and by including 5,022,990 of dilutive potential ordinary shares.

1 January 30 September 2017

1 January 30 September 2016

Profit for the period attributable to equity owners of the parent(Net income)€1,856 million€1,816 million

Weighted average number of ordinary shares outstanding(diluted)(1)779,090,085

779,516,417

€2.38

€2.33

Diluted earnings per share

Diluted earnings per share(1) Dilution assumes conversion of all potential ordinary shares

15

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

10. Intangible assets and property, plant and equipment
Intangible assets decreased by €-410 million to €11,658 million (prior year-end: €12,068 million), mainly due tothe reclassification of Vector to disposal groups classified as held for sale (see Note 3 “Acquisitions anddisposals”).
Intangible assets mainly relate to goodwill of €9,163 million (prior year-end: €9,425 million).
The annual impairment tests were performed in the fourth quarter 2016 and led to no impairment charge.
Property, plant and equipment decreased by €-369 million to €16,549 million (prior year-end: €16,918 million),principally due to the reclassification of Vector to disposal groups classified as held for sale (see Note 3“Acquisitions and disposals”). Property, plant and equipment includes leased assets of €183 million (prioryear-end: €116 million).

11. Investments accounted for under the equity method
Investments accounted for under the equity method decreased by €-59 million to €1,549 million (prioryear-end: €1,608 million) and include mainly the equity investments on ASL, MBDA and ATR.

12. Other investments and other long-term financial assets
Composition of other investments and other long-term financial assets:(In € million)

30 September 201731 December 2016

Other investments

2,427

2,091

Other long-term financial assets

1,900

1,564

Total non-current other investments and other long-term financial
assets

4,327

3,655

Current portion of other long-term financial assets
Total

516

522

4,843

4,177

Other investments include the remaining participation in Dassault Aviation of €1,121 million.
Other long-term financial assets mainly comprise the aircraft financing activities.

13. Inventories
Inventories of €35,443 million (prior year-end: €29,688 million) increased by €+5,755 million. This is mainly
driven by Airbus Commercial Aircraft (€+5,490 million), reflecting an increase in work in progress associated with
A350 XWB and A320 ramp-up.

16

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

14. Other financial assets and other financial liabilities
Composition of other financial assets:(In € million)

30 September 201731 December 2016

2,470

893

81

83

Positive fair values of derivative financial instruments
OthersTotal non-current other financial assets

2,551

976

Receivables from related companies

819

517

Positive fair values of derivative financial instruments

544

258

Others349

482

Total current other financial assets

1,712

1,257

Total

4,263

2,233

30 September 201731 December 2016

European Governments refundable advances

6,569

6,340

Negative fair values of derivative financial instruments

1,451

6,544

354

429

8,374

13,313Composition of other financial liabilities:(In € million)

OthersTotal non-current other financial liabilities
European Governments refundable advances

347

730

1,751

4,476

653

555

Total current other financial liabilities

2,751

5,761

Total

11,125

19,074

Negative fair values of derivative financial instruments
OthersThe liabilities for derivative financial instruments have decreased as a result of the devaluation of the US dollar
versus the euro associated with the mark to market valuation of the hedge portfolio.

17

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 201715. Other assets and other liabilities
Composition of other assets:(In € million)

30 September 201731 December 2016

2,222

2,265

Prepaid expenses
Others101

93

Total non-current other assets

2,323

2,358

VAT receivables

1,913

1,589

Prepaid expenses

755

552

Other

610

435

Total current other assets

3,278

2,576

Total

5,601

4,934

30 September 201731 December 2016

16,092

15,714

547

565

246

288

16,885

16,567

Customer advance payments

26,25024,115

Tax liabilities (excluding income tax)

1,274

1,047

Others

2,612

2,373

851

917

Total current other liabilities

30,98728,452

Total

47,87245,019Composition of other liabilities:(In € million)
Other liabilities
Customer advance payments
OthersDeferred income
Total non-current other liabilities
Other liabilities

Deferred income

16. Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts to€11,499 million (prior year-end: €3,657 million) representing an increase of €+7,842 million. This is due to anincrease in other comprehensive income of €+6,922 million, principally related to the mark to market revaluationof the hedge portfolio of €+6,767 million, and a net income for the period of €+1,851 million, partly offset by adividend payment of €-1,043 million (€1.35 per share).
The total number of shares issued is 774,467,480 and 772,912,869 as of 30 September 2017 and 31 December
2016. The Company’s shares are exclusively ordinary shares with a par value of €1.00.
In the first nine months 2017, the Company issued 1,554,611 new shares due to the 2016 Employee ShareOwnership Plan (“ESOP”) (first nine months 2016: 1,366,893 for the ESOP 2015).
During the first nine months 2017, the number of treasury stock held by the Company increased to 184,574
compared to 184,170 as of 31 December 2016. No shares were sold back to the market nor cancelled (first ninemonths 2016: 14,131,131 shares cancelled).
Non-controlling interests amount to €0 million (prior year-end: €-5 million).

18

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 201717. Provisions
Provisions are comprised of the following:(In € million)

30 September 201731 December 2016

Provisions for pensions

8,392

8,656

Other provisions

7,227

8,313

Total

15,61916,969Thereof non-current portion

10,391

10,826

Thereof current portion

5,228

6,143

Other provisions are presented net of programme losses against inventories and decreased by €-1,086 million.
A provision of €160 million related to restructuring measures was recorded at year-end 2016 following thecommunication of the plan to the employees and the European Works Council in November 2016. The Frenchsocial plan has been agreed between Airbus and the works council in June 2017. The German social plan has
been agreed between Airbus and the works councils in September 2017, the reconciliation of interest is still underdiscussion. On this basis, there is no change in the assessment of the restructuring provision as of 30 September
2017.
An H225 Super Puma helicopter was involved in an accident on 29 April 2016. Management is cooperating fully
with the authorities to determine the precise cause of the accident. An estimate of the related future costs has
been prepared and is included in other provisions.
Airbus makes estimates and provides, across the programmes, for costs related to in service technical issues
which have been identified and for which solutions have been defined, which reflects the latest facts andcircumstances. Contractually, Airbus is not liable towards operators for any incidental, indirect or consequential
damages. However, in view of overall commercial relationships and factual circumstances, contract adjustments
may occur, and be considered on a case by case basis.

18. Cash flows, securities and financing liabilities
Cash flows
Cash used for operating activities amounts to €-2,619 million (first nine months 2016: €-2,032 million). Gross
cash flow from operations (before change in other operating assets and liabilities) amounts to €+1,840 million(first nine months 2016: €+1,544 million). Change in other operating assets and liabilities amounts to €-4,459
million (first nine months 2016: €-3,576 million), mainly related to increase on inventories, partly offset by advancepayments received.
Cash (used for) provided by investing activities amounts to €-975 million (first nine months 2016: €+392
million). This comprises the impact of purchases of intangible assets and property, plant and equipment of€-1,655 million (first nine months 2016: €-1,990 million) and payments for investments in associates and otherinvestments and long-term financial assets of €-633 million (first nine months 2016: €-502 million). This was partly
compensated by disposals for a total of €+1,219 million (first nine months 2016: €+2,360 million), which includes
the sale of the defence electronics business (see Note 3 “Acquisitions and disposals”).
Cash provided by financing activities amounts to €+581 million (first nine months 2016: €+730 million). This
corresponds to changes in long-term and short-term financing liabilities of €+1,549 million (first nine months 2016:€+2,422 million), in part offset by a dividend payment of €1.35 per share which amounts to €-1,043 million (firstnine months 2015: €-1,008 million).

19

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

Securities
Non-current securities with a remaining maturity of more than one year increased by €+174 million to €10,071
million (prior year-end: €9,897 million). The movement is related to the cash management policy of Airbus.
Current securities with a remaining maturity of one year or less decreased by €-234 million to €1,317 million(prior year-end: €1,551 million).
Financing liabilities
Composition of financing liabilities:(In € million)

30 September 201731 December 2016

Bonds

7,111

6,013

Liabilities to financial institutions

1,832

2,072

Liabilities from finance leases

315

374

Loans

255

331

Others11Long-term financing liabilities

9,514

8,791

Liabilities to financial institutions

273

351

Liabilities from finance leases

14

15

Loans

315

332

Others

1,146

989

Short-term financing liabilities

1,748

1,687

The increase in financing liabilities is mainly related to the issuance of bonds. The increase in bonds
corresponds principally to bonds issued on 5 April 2017, for a total of US$1.5 billion, with a 10 year-maturity
tranche of US$750 million at fixed coupon of 3.150%, and a 30 year-maturity tranche of US$750 million at a fixedcoupon of 3.950%.

19. Financial instruments
Composition of derivative financial instruments:(In € million)

30 September 201731 December 2016

2,470

893

Non-current positive fair values
Current positive fair values

544

258

Total positive fair values of derivative financial instruments

3,014

1,151

Non-current negative fair values-1,451-6,544Current negative fair values-1,751-4,476

Total negative fair values of derivative financial instruments-3,202-11,020-188-9,869Total net fair value of derivative financial instruments

The volume of hedged US dollar-contracts was US$92.3 billion as at 30 September 2017 (prior year-end
US$102.4 billion). The US dollar spot rate was 1.18 US$/€ and 1.05 US$/€ at 30 September 2017 and at 31
December 2016, respectively. The average US dollar hedge rate for Airbus portfolio decreased to 1.23 US$/€ as
at 30 September 2017 compared to 1.25 US$/€ as at 31 December 2016.

20

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

Carrying amounts and fair values
Fair values of financial instruments have been determined with reference to available market information at theend of the reporting period and the valuation methodologies as described in detail in Note 35.2 to the 2016
Consolidated Financial Statements. For the first nine months 2017, Airbus has applied the same methodologies
for the fair value measurement of financial instruments.
Carrying amount is a reasonable approximation of fair value for all classes of financial instruments listed in thefirst table of Note 35.2 to the 2016 Consolidated Financial Statements, with the exception of:

30 September 2017
(In € million)

31 December 2016

Book value

Fair value

Book value

Fair value

Issued bonds and commercial papers-7,111-7,426-6,013-6,217

Liabilities to financial institutions
and other financing liabilities-3,822-3,823-4,076-4,086

Financing liabilities

For certain unlisted equity investments, and put or call options linked to those investments, as well as European
Governments refundable advances, no fair values can be reliably determined because the range of reasonable
fair value estimates is significant and the probabilities of the various estimates within that range is significant.
These instruments are therefore carried at amortised cost.
The following table allocates the financial assets and liabilities measured at fair value to the three levels of the fair(1)value hierarchy :30 September 2017
(In € million)

31 December 2016

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

1,911

0

0

1,911

1,597

0

0

1,597

0

3,014

0

3,014

0

1,148

3

1,151

11,32761

0

11,388

11,4462

0

11,448
7,048

Financial assets measured
at fair value
Equity instruments
Derivative instruments
Securities
Cash equivalents
Total

2,344

1,559

0

3,903

5,513

1,535

0

15,5824,634

020,216

18,5562,685

321,2440-3,136-12-3,1480-11,009-11-11,020

0

0

-38

-38

0

-11,009-49-11,058

Financial liabilities measured
at fair value
Derivative instruments
Other liabilities
Total

0

0

-22

-22

0

-3,136-34-3,170(1) The fair value hierarchy consists of the following levels:- 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, either directly (i.e. as prices) orindirectly (i.e. derived from prices);- Level 3: inputs for the asset or liability that are not based on observable market data.

21

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

The development of financial instruments of Level 3 is as follows:

Financial assets

Financial liabilites(In € million)
Balance at 1 January 2016
Profit or loss
Settlements
Balance at 30 September 2016

Commodity
swap
agreements
46
-10
-25
11

Total
46
-10
-25
11

Balance at 1 January 2017
Profit or loss
Other comprehensive income
Settlements
Balance at 30 September 2017

3
0
0
-3
0

3
0
0
-3
0

Written Commodity
put options on
swap
Earn-out
NCI interests agreements agreements
-64
0
-10
0
0
0
0
39
0
-25
0
-10
-28
0
6
0
-22

-11
-6
0
5
-12

-10
0
0
10
0

Total
-74
0
39
-35
-49
-6
6
15
-34

For a description of the valuation techniques, inputs and process used in the fair value measurement of thesefinancial instruments and a description of sensitivity analysis performed, refer to Note 35.2 of the Consolidated
Financial Statements. There is no material difference between the outcome of sensitivity analysis performed
at 30 September 2017, compared to the outcome disclosed in the year-end financial statements.

20. Litigation and claims
Airbus is involved from time to time in various legal and arbitration proceedings in the ordinary course of its
business, the most significant of which are described below. Other than as described below, Airbus is not awareof any material governmental, legal or arbitration proceedings (including any such proceedings which are pendingor 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 Airbus’ financial position or profitability.
If the Company concludes that the disclosures relative to contingent liabilities can be expected to prejudiceseriously its position in a dispute with other parties, the Company limits its disclosures to the nature of the dispute.
WTO
Although Airbus is not a party, Airbus 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 aparallel WTO case against the US in relation to its subsidies to Boeing. On 19 December 2014, the European
Union requested WTO consultations on the extension until the end of 2040 of subsidies originally granted by theState of Washington to Boeing and other US aerospace firms until 2024.
On 1 June 2011, the WTO adopted the Appellate Body’s final report in the case brought by the US assessing
funding to Airbus Commercial Aircraft from European governments. On 1 December 2011, the EU informed the
WTO that it had taken appropriate steps to bring its measures fully into conformity with its WTO obligations, andto comply with the WTO’s recommendations and rulings. Because the US did not agree, the matter is now under
WTO review pursuant to WTO rules.
On 23 March 2012, the WTO adopted the Appellate Body’s final report in the case brought by the EU assessing
funding to Boeing from the US. On 23 September 2012, the US informed the WTO that it had taken appropriate
steps to bring its measures fully into conformity with its WTO obligations, and to comply with the WTO’s
recommendations and rulings. Because the EU did not agree, the matter is now under WTO review pursuant to
WTO rules.

22Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

Exact timing of further steps in the WTO litigation process is subject to further rulings and to negotiations between
the US and the EU. Unless a settlement, which is currently not under discussion, is reached between the parties,
the litigation is expected to continue for several years.
GPT
Promptedbyawhistleblower’s

allegations,Airbusconducted

internal

auditsandretained

PricewaterhouseCoopers (“PwC”) to conduct an independent review relating to GPT Special Project Management
Ltd. (“GPT”), a subsidiary that Airbus acquired in 2007. The allegations called into question a service contract
entered into by GPT prior to its acquisition by Airbus, relating to activities conducted by GPT in Saudi Arabia.
PwC’s report was provided by Airbus to the UK Serious Fraud Office (the “SFO”) in March 2012. In the period
under review and based on the work it undertook, nothing came to PwC’s attention to suggest that improper
payments were made by GPT. In August 2012, the SFO announced that it had opened a formal criminal
investigation into the matter. Airbus is in continuing engagement with the authorities.
Eurofighter Austria
In March 2012, the German public prosecutor, following a request for assistance by the Austrian publicprosecutor, launched a criminal investigation into alleged bribery, tax evasion and breach of trust by current andformer employees of EADS Deutschland GmbH (renamed on 1 July 2014 Airbus Defence and Space GmbH) andEurofighter Jagdflugzeug GmbH as well as by third parties relating to the sale of Eurofighter aircraft to Austria in
2003. After having been informed of the investigation in 2012, Airbus retained the law firm Clifford Chance toconduct a fact finding independent review. Upon concluding its review, Clifford Chance presented its fact finding
report to Airbus in December 2013. Airbus provided the report to the public prosecutors in Germany. Airbus
Defence and Space GmbH settled with the tax authorities in August 2016 on the question of deductibility of
payments made in connection with the Eurofighter Austria campaign.
In February 2017, the Austrian Federal Ministry of Defence has 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 an investigation against Airbus Defence andSpace GmbH, Eurofighter Jagdflugzeug GmbH and former and current employees of the two entities. On 18
September 2017, Airbus filed a submission to the Vienna Public Prosecutor in response to the allegations ofdeception in the procurement of Eurofighter combat aircraft made by the Austrian Defence Minister. Airbus iscooperating fully with the authorities.
Investigation by the UK SFO and France’s PNF
In the context of review and enhancement of its internal compliance improvement programme, Airbus discovered
misstatements and omissions relating to information provided in respect of third party consultants in certain
applications for export credit financing for Airbus customers. In early 2016, Airbus informed the UK, German andFrench Export Credit Agencies (“ECAs”) of the irregularities it had discovered. Airbus made a similar disclosure to
the UK Serious Fraud Office (“SFO”). In August 2016, the SFO informed Airbus that it had opened aninvestigation into allegations of fraud, bribery and corruption in the civil aviation business of Airbus relating toirregularities concerning third party consultants (business partners). In March 2017, France’s Parquet National
Financier (“PNF”) informed Airbus that it had also opened a preliminary investigation into the same subject andthat the two authorities would act in coordination going forward. Airbus is cooperating fully with both authorities
including in respect of potential issues across Airbus' business. The SFO and PNF investigations and any
penalties potentially levied as a result could have negative consequences for Airbus. The potential imposition ofany monetary penalty (and the amount thereof) or other sanction arising from the SFO and PNF investigations will
depend on the ultimate factual and legal findings of the investigation, and could have a material impact on thefinancial statements, business and operations of Airbus. However, at this stage it is too early to determine thelikelihood or extent of any such possible consequence. Investigations of this nature could also result in23

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017(i) civil claims or claims by shareholders against Airbus (ii) adverse consequences on Airbus’ ability to obtain orcontinue financing for current or future projects (iii) limitations on the eligibility of group companies for certain
public sector contracts and/or (iv) damage to Airbus’ business or reputation via negative publicity adversely
affecting Airbus’ prospects in the commercial market place.
ECA financing
ECA financing continues to be suspended. Airbus is working with the relevant ECAs to re-establish ECA
financing.
Other investigations
In October 2014, the Romanian authorities announced an investigation relating to a border surveillance project inRomania. Airbus confirms that Airbus Defence and Space GmbH had been informed that the German prosecution
office was also investigating potential irregularities in relation to this project, a project in Saudi Arabia and a
project of Tesat-Spacecom GmbH & Co. KG (“Tesat”). The public prosecutor in Germany launched administrative
proceedings in the context of those investigations against Airbus Defence and Space GmbH and Tesat. Airbus
has cooperated fully with the authorities. In October 2016, the German authorities announced that they were
dropping their investigations into the Romanian and Saudi projects. The investigation of the Tesat project is stillongoing. The tax authorities may challenge the tax treatment of business expenses in connection with the
Romanian and Saudi projects.
Airbus is cooperating with a judicial investigation against unknown persons in France related to Kazakhstan.
Airbus is cooperating with French judicial authorities pursuant to a request for mutual legal assistance made by
the government of Tunisia in connection with historical aircraft sales.
Following a review of its US regulatory compliance procedures, Airbus has discovered and subsequently informed
relevant US authorities of its findings concerning certain inaccuracies in filings made with the US Department ofState pursuant to Part 130 of the US International Traffic in Arms Regulations (ITAR). Airbus is cooperating with
the US authorities. Airbus is unable to reasonably estimate the time it may take to resolve the matter or theamount or range of potential loss, penalty or other government action, if any, that may be incurred in connection
with this matter.
Review of business partner relationships
In light of regulatory investigations and commercial disputes, including those discussed above, Airbus has
determined to enhance certain of its policies, procedures and practices, including ethics and compliance. Airbus isaccordingly in the process of revising and implementing improved procedures, including those with respect to its
engagement of consultants and other third parties, in particular in respect of sales support activities and isconducting enhanced due diligence as a pre-condition for future or continued engagement and to inform decisions
on corresponding payments. Airbus engaged legal, investigative, and forensic accounting expertise of the highest
calibre to undertake a comprehensive review of all relevant third party business consultant relationships andrelated subject matters. Airbus believes that these enhancements to its controls and practices will best position it
for the future, particularly in light of advancements in regulatory standards. Several consultants and other third
parties have initiated commercial litigation and arbitration against Airbus seeking relief. The comprehensive
review and these enhancements of its controls and practices has led to additional commercial litigation andarbitration against Airbus and may lead to other civil law or criminal law consequences in the future, which could
have a material impact on the financial statements, however at this stage it is too early to determine the likelihood
or extent of any liability.

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Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2017

Commercial disputes
In May 2013, Airbus has been notified of a commercial dispute following the decision taken by Airbus to cease apartnership for sales support activities in some local markets abroad. Airbus believes it has solid grounds tolegally object to the alleged breach of a commercial agreement. However, the consequences of this dispute andthe outcome of the proceedings cannot be fully assessed at this stage. The arbitration will not be completed until
2018 at the earliest.
In the course of another commercial dispute, Airbus received a statement of claim alleging liability for refunding
part of the purchase price of a large contract which the customer claims it was not obliged to pay. The dispute iscurrently the subject of arbitration.

21. Number of employees
The number of employees as at 30 September 2017 is 130,917 as compared to 133,782 as at 31 December
2016.

22. Subsequent events
On 16 October 2017, Airbus and Bombardier Inc. (“Bombardier”) signed an agreement that brings together
Airbus’ global reach and scale with Bombardier’s newest, state-of-the-art jet aircraft family. Under the agreement,
Airbus will provide procurement, sales and marketing, and customer support expertise to the C Series Aircraft
Limited Partnership (CSALP), the entity that manufactures and sells the C Series. At closing, Airbus will acquire a
50.01% interest in CSALP. Bombardier and Investissement Québec will own approximately 31% and 19%,
respectively. The transaction has been approved by the Boards of Directors of both Airbus and Bombardier, as
well as the Cabinet of the Government of Québec. The transaction remains subject to regulatory approvals, aswell as other conditions usual in this type of transaction.

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