Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Information
for the three-month period ended 31 March 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 ...............................................................................................................................................................94.

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

5.

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

6.

Segment Information ........................................................................................................................................................... 10

7.

Revenue and Gross Margin ................................................................................................................................................ 11

8.

Research and Development Expenses ............................................................................................................................... 12

9.

Share of Profit from Investments Accounted for under the Equity Method and Other Income from Investments .................. 12

10.

Other Income and Other Expenses ..................................................................................................................................... 12

11.

Total Financial Result.......................................................................................................................................................... 12

12.

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

13.

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

14.

Intangible Assets and Property, Plant and Equipment ......................................................................................................... 13

15.

Investments Accounted for under the Equity Method........................................................................................................... 13

16.

Other Investments and Other Long-Term Financial Assets ................................................................................................. 13

17.

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

18.

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

19.

Other Financial Assets and Other Financial Liabilities ......................................................................................................... 14

20.

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

21.

Total Equity ......................................................................................................................................................................... 1522.

Net Cash ............................................................................................................................................................................. 16

23.

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

24.

Litigation and Claims ........................................................................................................................................................... 18

25.

Number of Employees......................................................................................................................................................... 20

26.

Events after the Reporting Date .......................................................................................................................................... 20

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 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 under the equity method
Other income from investments
Profit before financial result and income taxes
Interest income
Interest expense
Other financial result
Total financial result
Income taxes(Loss) Profit for the period

Note
7
7

8
10
10
9
9

11
12

Attributable to:Equity owners of the parent (Net income)Non-controlling interests
Earnings per share
Basic
Diluted13
13

1 January 31 March 2020
10,631(9,430)
1,201
(200)
(393)
(663)
29
(14)
(15)
134
79
53
(98)
(432)
(477)
(94)
(492)

1 January 31 March 201912,549(11,169)
1,380
(212)
(372)
(654)
70
(21)
(8)
(2)
181
56
(92)
(7)
(43)
(94)
44

(481)
(11)

40
4

€
(0.61)(0.61)

€
0.05
0.05

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 three-month period ended 31 March 2020

Unaudited Condensed Interim
IFRS Consolidated Statement of Comprehensive Income
1 January 31 March 2020
(492)

1 January 31 March 2019
44

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

1,579
(472)
2
(264)

(619)
74
2
175

Items that may be reclassified to profit or loss:
Foreign currency translation differences for foreign operations
Change in fair value of cash flow hedges
Change in fair value of financial assets
Share of change from investments accounted for under the equity method
Income tax relating to items that may be reclassified
Other comprehensive income, net of tax
Total comprehensive income for the period(12)(3,618)
(340)
(20)
968
(2,177)(2,669)

53
(728)
127
12
171
(733)
(689)

Attributable to:Equity owners of the parent
Non-controlling interests(2,654)
(15)

(679)
(10)

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

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 three-month period ended 31 March 2020

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

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

Note

31 March 2020

31 December 201914
14

16,62317,082
2
1,563
3,394
186
938
536
5,735
10,40756,466

16,591
17,294
2
1,626
4,453
91
1,033
522
5,008
11,066
57,68635,955
5,090
388
1,288
2,079
2,897
1,844
1,648
6,348
57,5370
114,003

31,550
5,674
449
1,167
2,060
2,423
1,784
2,302
9,314
56,723
0
114,409

15
16
19
20
22

Current assets
Inventories
Trade receivables
Current portion of other long-term financial assets
Current contract assets
Current other financial assets
Current other assets
Current tax assets
Current securities
Cash and cash equivalents
Total current assets
Assets and disposal group of assets classified as held for sale
Total assets

17
16
19
20
22
22
4

4

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 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

31 March 2020

31 December 2019

21

784
3,555
3,186
(3,922)
(86)
3,517
11
3,528

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

10,7738,420
16,891
9,111
370
488
51
46,104

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

6,033
6,397
13,72827,258
3,458
4,095
2,833
569
64,371
0
110,475
114,003

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

4

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 three-month period ended 31 March 2020

Unaudited Condensed Interim
IFRS Consolidated Statement of Cash Flows
Note(In € million)

Operating activities(Loss) Profit for the period attributable to equity owners of the parent (Netincome)(Loss) Profit 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 for income
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

1 January 31 March 2020

1 January 31 March 2019

(481)
(11)

40
4

828
272
(7)

720
68
(74)

(11)
0
15
(315)
(132)
(7,772)(7,614)

27
(44)
8
(54)
(42)
(4,703)(4,050)

(453)

(455)

12

22

(479)
0

8
1

(147)

(136)

Investing activities
Purchases of intangible assets, property, plant and equipment andinvestment property
Proceeds from disposals of intangible assets, property, plant and equipment andinvestment property
Acquisition of subsidiaries, joint ventures, businesses and non-controllinginterests (net of cash)
Proceeds from disposals of subsidiaries (net of cash)
Payments 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
Disposals of non-current assets and disposal groups classified as assets held forsale and liabilities directly associatedChange in securities
Cash provided by (used for) investing activities

99
0

94
5

0
1,150
182

0
459
(2)

Financing activities
Change in financing liabilities
Changes in liability for puttable instruments
Change in treasury shares
Cash provided by financing activities
Effect of foreign exchange rate changes on cash and cash equivalents
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

4,254
81
(4)
4,331
135
(2,966)
9,314
6,348

448
83
0
531
108
(3,413)
9,428
6,015

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 three-month period ended 31 March 2020

Unaudited Condensed Interim
IFRS Consolidated Statement of Changes in Equity(In € million)
Balance at 1 January 2019, as reported
Restatements (1)Balance at 1 January 2019, restated (1)Profit for the period
Other comprehensive income
Total comprehensive income for the period
Share-based payment (IFRS 2)
Equity transaction (IAS 27)
Balance at 31 March 2019

Equity attributable toequity owners of theparent
9,724
(122)
9,602
40
(719)
(679)
33
(46)
8,910

Non-controllinginterests
(5)
0
(5)
4
(14)
(10)
0
18
3

Total Equity
9,719
(122)
9,597
44
(733)
(689)
33
(28)
8,913

Balance at 1 January 2020
Loss for the period
Other comprehensive income
Total comprehensive income for the period
Share-based payment (IFRS 2)
Equity transaction (IAS 27)
Change in treasury shares
Balance at 31 March 2020

5,975
(481)
(2,173)(2,654)
24
176
(4)
3,517

15
(11)
(4)
(15)
0
11
0
11

5,990
(492)
(2,177)(2,669)
24
187
(4)
3,528

(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 three-month period ended 31 March 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 April
2020.

2.

Impact of the spread of the COVID-19 pandemic

The COVID-19 pandemic and the actions taken in response to its spread including government measures and travel restrictions haveresulted in significant disruption to the Company’s business operations and supply chain. A number of measures have been taken by theCompany to implement stringent health and safety procedures while taking account of stock levels and production lead-times.
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. This represents a reductionof the 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 31 March 2020 are detailed in the following sections.
The rapidly evolving situation, including health and safety conditions, the economic environment and the resulting government measures,
creates a high level of uncertainty and risk that may result in significant impacts on the Company’s business, results of operations andfinancial condition. 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. 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 the next 12 months.

8

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 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 charge being necessary as of 31 March 2020.
These tests have been performed in line with the methodology used for the annual impairment tests for each of the Company’s Cash
Generating Units (CGUs). Cash flow projections are normally based on operative planning and expected cash flows beyond the planninghorizon through a terminal value. In the current context different scenarios have been considered incorporating assumptions on future
production rates, deliveries and order-in-take, together with other mitigating actions that the Company may implement.
In addition, the Company performed a comparison with the fair value of each CGU derived from the market capitalisation. The market
capitalisation as of 31 March 2020 amounts to € 46.5 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 three 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 € -348 million for the investment in Dassault Aviation. The impact in OCI for € -589 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

Other assets

Due to the COVID-19 triggering event, the Company has reviewed its inventories such as finished aircraft and work in progress as wellas other assets such as development costs and deferred tax assets. As a result of this work no significant impairment has been recordedin the first three months 2020.

2.5

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, the accumulated gains or losses on the hedging instrument have been reclassified to financial result.
The increase of the counterparty credit risk and Airbus credit spread is included in the determination of the fair value of the hedges andhad limited impact on the measurement of hedge ineffectiveness.
The Company considers that the modification of commercial aircraft production rates does not constitute a reduction of the hedged item.
The Company will continue to review this position going forward to identify any potential trigger for hedge disqualification.

2.6

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 three months 2020. As a result of this review no significant credit losses
have been recorded in the first three months 2020 (see “- Note 16: Other Investments and Other Long-Term Financial Assets”).

2.7

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 impact on the net
pension liability for the first three months 2020 amounting to € 1.6 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 31 March 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.
9

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2020

The exceptions are:4.

-

some 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.
Assets and Disposal Groups Classified as Held for Sale
As of 31 March 2020, the Company has not accounted for assets and disposal group of assets classified as held for sale (prior yearend: € 0 million) and for disposal group of liabilities classified as held for sale (prior year-end: € 0 million).

5.

Related Party Transactions

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

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“Traversal/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.

10

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2020

Business segment information for the three-month period ended 31 March 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
7,569
(126)
7,443

AirbusHelicopters
1,202
(106)
1,096

AirbusDefenceand Space
2,111
(19)
2,092

Eliminations
0
0
0

Consolidated
Airbus
10,882(251)
10,631

6,572
7
864

459
41
596

495
866
731

0
0
0

7,526
914
2,191

57
(543)

53
(75)

(53)
(51)

22
6

79
(663)
(45)
(432)
(94)
(492)

Airbus
9,697
(144)
9,553

AirbusHelicopters
1,007
(104)
903

AirbusDefenceand Space
2,112
(19)
2,093

Eliminations
0
0
0

Consolidated
Airbus12,816(267)
12,549

8,738
5
810

323
56
524

503
936
654

0
0
0

9,564
997
1,988

319
(527)

9
(69)

(117)
(61)

(30)
3

181
(654)
(36)
(7)
(94)
44

Business segment information for the three-month period ended 31 March 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)7.

Restated due to new segment presentation.

Revenue and Gross Margin

Revenue decreased by € -1,918 million to € 10,631 million (first three months 2019: € 12,549 million). The decrease is mainly driven by
Airbus (€ -2,110 million) reflecting lower deliveries in a difficult market environment (see "– Note 2: “Impact of the spread of the COVID19 pandemic”), partly offset by a better mix and favourable foreign exchange impact. This is partly offset by an increase in Airbus
Helicopters (€ +193 million) reflecting favourable delivery mix and growth in services.
Revenue by geographical areas based on the location of the customer is as follows:
1 January 31 March 2020
2,428
4,659
2,216
521
129
678
10,631(In € million)

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

1 January 31 March 2019
4,531
4,292
2,266
758
296
406
12,549The gross margin decreased by € -179 million to € 1,201 million compared to € 1,380 million in the first three months 2019. It mainlyreflects lower deliveries and associated costs at Airbus, partly offset by favourable foreign exchange impact. It also reflects favourable
delivery mix and growth in services at Airbus Helicopters. The gross margin rate increased from 11.0% to 11.3%.

11

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2020

In the first three months 2020, Airbus has delivered 14 A350 XWB aircraft. New order intakes, cancellations, delivery postponements andother contractual agreements to the end of March 2020 have been reflected in the financial statements.
Risks continue to be closely monitored in line with the schedule, aircraft performance and overall cost envelope, as per customer
commitments. Despite the progress made, challenges remain with recurring cost convergence.
As of 31 December 2018, the Company’s largest A380 operator reviewed its aircraft fleet strategy going forward and concluded it is forced
to restructure and reduce its A380 order by 39 aircraft. 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 theremeasurement 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 three months 2020, the Company recorded an additional net charge of € 16 million in EBIT.
As of 31 March 2020, the Company has delivered a total of 89 A400M aircraft including 1 aircraft in the first three 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. The year-end 2019 assessment remains unchanged asof 31 March 2020.
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 repeatedly prolonged suspension of defence export licences to Saudi Arabia by the German Government, and theconsequential 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 thiscontract. The outcome of these negotiations is presently unclear but could result in significant further financial impacts. The year-end 2019assessment remains unchanged as of 31 March 2020.

8.

Research and Development Expenses

Research and development expenses increased by € +9 million to € 663 million compared to € 654 million in the first three months 2019.

9.

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

Share of profit from investments under the equity method and other income from investments increased by € +129 million to € 119
million compared to € -10 million in the first three months 2019.

10.

Other Income and Other Expenses

Other income decreased by € -41 million to € 29 million compared to € 70 million in the first three months 2019.
Other expenses decreased by € -7 million to € -14 million compared to € -21 million in the first three months 2019.

11.

Total Financial Result

Total financial result deteriorated by € -434 million to € -477 million compared to € -43 million in the first three months 2019. This ismainly due to the revaluation of certain equity investments (see “– Note 16: Other Investments and Other Long-Term Financial Assets”).

12Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2020

12.

Income Taxes

The income tax expense amounts to € -94 million (first three months 2019: € -94 million). The effective tax rate is mainly driven by taxfree revaluation of certain equity investments, deferred tax asset impairment and tax risk 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 31 March 2020

1 January 31 March 2019

€ (481) million
782,298,786€ (0.61)€ 40 million
775,730,957€ 0.05

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 three months 2020, the effect of potentially dilutive ordinary shares is anti-dilutive.
During the first three months 2019, the average price of the Company’s shares exceeded the exercise price of the share-settled
Performance Units and therefore 852,316 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 three months 2019, by adding back€ 2 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)

14.

1 January 31 March 2020

1 January 31 March 2019

€ (481) million
782,298,786€ (0.61)€ 42 million
781,606,263€ 0.05In the first three months 2019, dilution assumes conversion of all potential ordinary shares.

Intangible Assets and Property, Plant and Equipment

Intangible assets increased by € +32 million to € 16,623 million (prior year-end: € 16,591 million). Intangible assets mainly relate to
goodwill of € 13,035 million (prior year-end: € 13,019 million).
Property, plant and equipment decreased by € -212 million to € 17,082 million (prior year-end: € 17,294 million). Property, plant andequipment include right-of-use assets for an amount of € 1,560 million as of 31 March 2020 (prior year-end: € 1,543 million).

15.

Investments Accounted for under the Equity Method

Investments accounted for under the equity method decreased by € -63 million to € 1,563 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

31 March 2020
1,596
1,798
3,394
388
3,782

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

Other investments mainly comprise the Company’s participations. The significant participations at 31 March 2020 include the remaining
investment in Dassault Aviation (9.90%, prior year-end: 9.90%) amounting to € 620 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.
13

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2020

Other long-term financial assets and the current portion of other long-term financial assets include other loans in the amount of€ 1,891 million as of 31 March 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 € 35,955 million (prior year-end: € 31,550 million) increased by € +4,405 million. This is mainly driven by an increase inwork in progress and finished aircraft at Airbus (€ +3,926 million), 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
31 March 2020
6,697
10,10916,806
10,773
6,033(In € million)

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 decreased mainly due to the increase of the discount rates during the first three months 2020, partly
compensated 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”).

19.

Other Financial Assets and Other Financial Liabilities

Other Financial Assets(In € million)

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

31 March 2020
900
38
938
957
658
464
2,079
3,017

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

31 March 2020
5,162
3,520
429
9,111
2,333
563
146
416
3,458
12,56931 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 allocation of European Governments’ refundable advances between non-current and current presented in the Unaudited Condensed
Interim IFRS Consolidated Financial Statements ended 31 March 2020 is based on the applicable contractual repayment dates. The
European Governments’ refundable advances decreased by € -194 million to € 4,083 million (prior year-end: € 4,277 million), primarily
related to the payments made on the A380 programme (see “– Note 7: Revenue and Gross Margin”).

14

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2020

20.

Other Assets and Other Liabilities

Other Assets(In € million)

Cost to fulfil a contract
Prepaid expenses
OthersTotal non-current other assets
Value added tax claims
Cost to fulfil a contract
Prepaid expenses
OthersTotal current other assets
Total

31 March 2020
362
84
90
536
1,237
647
569
444
2,897
3,433

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

31 March 2020
370
370
749
3,346
4,095
4,465

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

Other Liabilities(In € million)

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

21.

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:
31 March 2020
783,173,115
00783,173,115(895,175)
782,277,940(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 € 3,517 million (prior year-end:€ 5,975 million) representing a decrease of € -2,458 million. This is due to a net loss for the period of € -481 million and a decrease inother comprehensive income, principally related to the mark to market revaluation of the hedge portfolio of € -2,697 million and therevaluation of financial assets of € -707 million, party compensated by a change in actuarial gains and losses of € +1,226 million.
The non-controlling interests (“NCI”) from non-wholly owned subsidiaries decreased to € 11 million as of 31 March 2020
(prior year-end: € 15 million). These NCI do not have a material interest in the Company’s activities and cash flows.

15

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2020

22.

Net Cash

The net cash position provides financial flexibility to fund the Company’s operations, to react to business needs and risk profile and toreturn capital to the shareholders.

31 March 2020
6,348
1,648
10,407
18,403(6,397)(8,420)3,586(In € million)

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 cash position on 31 March 2020 amounted to € 3,586 million (prior year-end: € 12,534 million), with a gross cash position of€ 18,403 million (prior year-end: € 22,682 million).

Cash and Cash Equivalents
Cash and cash equivalents are composed of the following elements:

31 March 2020
3,050
2,644
652
2
6,348

(In € million)

Bank account and petty cash
Short-term securities (at fair value through profit and loss)
Short-term securities (at fair value through OCI)
OthersTotal cash and cash equivalents

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

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
31 March 2020
6,736
209
146
1,329
8,420
4,168
451
134
256
1,388
6,397
14,817(In € million)

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 € +231 million to € 8,420 million (prioryear-end: € 8,189 million), mainly due to the revaluation of financing liabilities.
Short-term financing liabilities increased by € +4,438 million to € 6,397 million (prior year-end: € 1,959 million). The increase in
short-term financing liabilities is mainly related to the issuance of commercial papers.

16

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 202023.

Financial Instruments

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

31 December 2019
996
444
1,440
(2,434)(1,560)(3,994)(2,554)31 March 2020
900
658
1,558
(5,162)(2,333)(7,495)(5,937)

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

The total net fair value of derivative financial instruments decreased by € -3,383 million to € -5,937 million (prior year-end: € -2,554 million)
as a result of the strengthened 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$ 94.0 billion as at 31 March 2020 (prior year-end: US$ 97.1 billion). The US dollar spot
rate was 1.10 US$/€ and 1.12 US$/€ at 31 March 2020 and at 31 December 2019, respectively. The average US dollar hedge rate for thehedge portfolio of the Company remains at 1.23 US$/€ as at 31 March 2020.

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 first
three months 2020, the Company has applied the same methodologies for the fair value measurement of financial instruments. In addition,
the Company has remeasured non-listed equity investments for which no quoted market prices are available at fair value and determined
the fair values of these equity investments using common valuation methods such as net asset values or a comparable company valuation
multiples technique.
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:(In € million)

Financing liabilities
Bonds and commercial papers
Liabilities to financial institutions and others

31 March 2020
Book Value
Fair Value(10,904)(2,328)(10,573)(2,328)31 December 2019
Book Value
Fair Value(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.

17

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2020

The following table presents the carrying amounts of the financial instruments held at fair value across the three levels of the fair value
hierarchy:

Level 1(In € million)

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

31 March 2020
Level 2
Level 3

Total

Level 131 December 2019
Level 2
Level 3

Total

1,175
0
12,05502,644
15,874

0
1,558
0
0
652
2,210

421
0
0
295
0
716

1,596
1,558
12,055295
3,296
18,8001,988
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(7,500)0(7,500)

5
(195)
(190)

(7,495)(195)(7,690)000(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
22
819
0
0
3
0
0
(195)
5

Total
(2,326)
0
(12)
1,286
18
0
(1,034)
0
22
819
3
0
(190)

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 31 March 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
(107)
0
0
421

Customerfinancing
510
0
(160)
0
0
0
350
0
(55)
0
0
0
295

Total
1,164
0
(109)
39
0
0
1,094
0
(271)
(107)
0
0
716

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 11.4% (prior year-end: 7.5%) is used to discount the forecasted cash flows taking into account the impactsof the COVID-19 pandemic and the specificities of the programme.

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 by18

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2020

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. At this stage it is too early
to determine the full extent of any financial impact on the Company. Duties on the importation of Airbus products into the US could resultin (i) increased costs for the aerospace and airline industries as well as other industries that rely on air transport, (ii) weakening demand
for new aircraft and negatively affecting the financial condition of air carriers and lessors, (iii) decisions to defer, reject or reschedule thedelivery of new aircraft or limit the routes upon which new aircraft will be used, (iv) increased costs to consumers, (v) retaliation by the EUwith its own import duties to be applied to US products, and/or (vi) damage to the Company’s business or reputation via negative publicity
adversely affecting the Company’s prospects in the commercial market place.
Several years of proceedings also identified significant unlawful support to Boeing. In its most recent decision on the matter in March
2019, the WTO found that the steps by the US to address US subsidies to Boeing were inadequate. The WTO Appellate Body also foundthat additional US federal and state programmes, such as the Foreign Sales Corporation (“FSC”) and Washington State tax reductions
constitute illegal subsidies. Consequently, the EU initiated its request for the authorisation of annual countermeasures amounting to up to
US$ 12 billion and published a preliminary list of products from the US on which the EU may take countermeasures, which includes US
aircraft. The actual amount of duties to which the EU may be entitled will be determined at the conclusion of WTO arbitration proceedings.
The imposition of equivalent or greater tariffs on aircraft imports into Europe is likely.
Exact timing of further steps in the WTO litigation process is subject to further rulings and to negotiations between the US and the EU.

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

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

Investigation by the UK SFO, France’s PNF, US Departments of State and Justice and Related
Commercial Litigation
The Company reached final agreements (“the agreements”) with the French Parquet National Financier (“PNF”), the UK Serious Fraud
Office (“SFO”), and the US Department of Justice (“DoJ”) resolving the authorities' investigations into allegations of bribery and corruption,
as well as with the US Department of State (“DoS”) and the DoJ to resolve their investigations into inaccurate and misleading filings madewith the DoS pursuant to the US International Traffic in Arms Regulations (“ITAR”). The agreements were approved and made public on
31 January 2020.
Under the terms of the agreements, the Company has agreed to pay penalties of € 3,597,766,766 plus interest and costs to the French,
UK and US authorities. This is recognised in the Company’s 2019 accounts. The settlements with each authority are as follows: PNF €2,083,137,455, the SFO € 983,974,311, the DoJ € 526,150,496 and the DoS € 9,009,008 of which € 4,504,504 may be used for approved
remedial compliance measures.
Under the terms of the Convention Judiciaire d'Intérêt Public (“CJIP”) with the PNF, the Company has an obligation to submit its
compliance programme to targeted audits carried out by the Agence Française Anticorruption (“AFA”) over a period of three years.
Under the terms of the Deferred Prosecution Agreement (“DPA”) with the SFO, no independent compliance monitor will be imposed on
the Company in light of the continuing monitorship to be conducted by the AFA.
Under the terms of the DPA with the DoJ, no independent compliance monitor will be imposed on Airbus under the agreement with the
DoJ, but the Company will periodically report on its continuing compliance enhancement progress during the three year term of the DPA
and carry out further reviews as required by the DoJ.
The agreements result in the suspension of prosecution for a duration of three years whereupon the prosecutions will be extinguished if
the Company complies with their terms throughout the period, including the payment of penalties.
Under the terms of the Consent Agreement with the DoS, the DoS has agreed to settle all civil violations of the ITAR outlined in the
Company's voluntary disclosures identified in the Consent Agreement, and the Company has agreed to retain an independent export
control compliance officer, who will monitor the effectiveness of the Company’s export control systems and its compliance with the ITAR
for a duration of three years.

19

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2020

Any breach of the terms of the agreements by the Company could lead to rescission by the authorities of the terms of the agreements
and reopening of the prosecutions. Prosecution could result in the imposition of further monetary penalties or other sanctions including
additional tax liability and could have a material impact on the financial statements, business and operations of the Company.
In addition to any pending investigation in other jurisdictions, the factual disclosures made in the course of reaching the agreements may
result in the commencement of additional investigations in other jurisdictions. Such investigations could also result in (i) civil claims or
claims by shareholders against the Company, (ii) adverse consequences on the Company’s ability to obtain or continue financing for
current or future projects, (iii) limitations on the eligibility of group companies for certain public sector contracts, and/or (iv) damage to theCompany’s business or reputation via negative publicity adversely affecting the Company’s prospects in the commercial market place.
Airbus will continue to cooperate with the authorities in the future, pursuant to the agreements and to enhance its strong Ethics &Compliance culture within the Company.
Several consultants and other third parties have initiated commercial litigation and arbitration against the Company seeking relief. The
agreements reached with authorities may lead to additional commercial litigation and arbitration against the Company and tax liability inthe future, which could have a material impact on the financial statements, business and operations of the Company.

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

Other Investigations
The Company is cooperating fully with the authorities in a judicial investigation in France related to Kazakhstan. In this spirit, the Company
asked to be interviewed by the investigating magistrates and has been granted the status of “assisted witness” in the investigation.
On 17 September 2019, the Company self-reported to German authorities potentially improper advance receipt and communication ofconfidential customer information by employees of Airbus Defence and Space GmbH. The information concerned relates to two future
German government procurement projects in the programme line Communications, Intelligence and Security. The self-disclosure by theCompany follows an ongoing internal review with the support of an external law firm. Both the German Ministry of Defence and the Munich
public prosecutor announced their intention to open an investigation into the matter. The Company will continue to fully cooperate with
relevant authorities. The investigation could have an impact on Airbus Defence and Space GmbH’s ability to participate in future public
procurement projects in Germany and may have other legal consequences.

Other Disputes
In the course of a commercial dispute, the Company received a statement of claim by the Republic of China (Taiwan) alleging liability forrefunding part of the purchase price of a large contract for the supply of missiles by subsidiary Matra Défense S.A.S., which the customer
claims it was not obliged to pay. An arbitral award was rendered on 12 January 2018 with a principal amount of € 104 million plus interest
and costs against Matra Défense S.A.S. Post-award proceedings are currently underway.

25.

Number of Employees
Airbus82,48480,98531 March 2020
31 December 201926.

Airbus Airbus Defence
Helicopters
and Space
20,26733,76720,02433,922

Consolidated
Airbus136,518
134,931

Events after the Reporting Date

On 7 April 2020, the Company issued a bond for a total of € 2.5 billion. The 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 year-maturity tranche of € 1 billion
with a coupon of 2.375%.
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. This represents a reductionof the 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.

20