Financial
Statements
l 2015 l

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 02 l

Financial Statements
l 2015 l

1

Airbus Group SE — IFRS Consolidated
Financial Statements

2

Notes to the IFRS Consolidated Financial
Statements

3

Airbus Group SE — IFRS Company
Financial Statements

4

Notes to the IFRS Company Financial
Statements

5

Other Supplementary Information
Including the Independent Auditor’s Report

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 03 l

Chapter

1.
AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 04 l

Financial Statements 2015

Airbus Group SE
IFRS Consolidated Financial Statements

Airbus Group SE — IFRS Consolidated
Income Statements for the years ended
31 December 2015 and 201406

Airbus Group SE — IFRS Consolidated
Statements of Comprehensive Income
for the years ended 31 December 2015
and 2014

07

Airbus Group SE — IFRS Consolidated
Statements of Financial Position
at 31 December 2015 and 201408

Airbus Group SE — IFRS Consolidated
Statements of Cash Flows for the years ended
31 December 2015 and 201410

Airbus Group SE — IFRS Consolidated
Statements of Changes in Equity
for the years ended 31 December 2015 and 2014

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 05 l

1.
11

Airbus Group SE — IFRS Consolidated Financial Statements

Airbus Group SE — IFRS Consolidated Income Statements
for the years ended 31 December 2015 and 2014

(In € million)

Note

Revenues

10

64,45060,713

Cost of sales

10(55,599)(51,776)

Gross margin10

Selling expenses
Administrative expenses
Research and development expenses

11

2015

2014

8,851

8,937

(1,065)(1,063)(1,586)(1,538)(3,460)(3,391)Other income

13

474

330

Other expenses

13

(222)

(179)

Share of profit from investments accounted for under the equity method

12

1,016

840

Other income from investments

12

54

55

4,062

3,991

Profit before finance costs and income taxes
Interest income

183

142

Interest expense

(551)

(462)

(319)

(458)

Other financial result
Total finance costs

14

(687)

(778)

Income taxes

15

(677)

(863)

2,698

2,350

2,696

2,343

2

7

€

€

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

16

3.43

2.99

Diluted

16

3.42

2.99

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 06 l

Financial Statements 2015
Airbus Group SE — IFRS Consolidated Financial Statements

Airbus Group SE — IFRS Consolidated Statements of Comprehensive Income
for the years ended 31 December 2015 and 2014

(In € million)

2015

2014

Profit for the period

2,698

2,350

Remeasurement of the defined benefit liability (asset)

761(2,034)Remeasurement of the defined benefit liability (asset) from investments using the equity method

(36)

(131)

Related tax on items that will not be reclassified to profit or loss

(235)

577

Other comprehensive income
Items that will not be reclassified to profit or loss:

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

222

244

Effective portion of changes in fair value of cash flow hedges(866)(6,748)(3,833)358

Net change in fair value of cash flow hedges transferred to profit or loss
Net change in fair value of available-for-sale financial assets
Net change in fair value of available-for-sale financial assets transferred to profit or loss

366

90

2

(19)

Changes in other comprehensive income from investments accounted for using the equity method

(142)

(22)

Related tax on income and expense recognised directly in equity

1,112

1,961

(2,649)(5,724)49(3,374)Equity owners of the parent

76(3,362)

Non-controlling interests

(27)

(12)

Other comprehensive income, net of tax

Total comprehensive income of the period
Attributable to:

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).

1.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 07 l

Airbus Group SE — IFRS Consolidated Financial Statements

Airbus Group SE — IFRS Consolidated Statements of Financial Position
at 31 December 2015 and 2014

Note

2015

Intangible assets

17

12,55512,758Property, plant and equipment

18

17,127

16,321

66

67(In € million)

2014

AssetsNon-current assets

Investment property
Investments accounted for under the equity method

7

1,326

3,391

Other investments and other long-term financial assets

19

2,492

1,769

Non-current other financial assets

23

1,096

586

Non-current other assets

24

2,166

1,822

Deferred tax assets

15

6,759

5,717

Non-current securities

34

9,851

5,989

53,43848,420Current assets
Inventories

20

29,051

25,355Trade receivables

21

7,877

6,798

Current portion of other long-term financial assets

19

178

167

Current other financial assets

23

1,402

1,164

Current other assets

24

2,819

2,389

860

605

Current securities

34

1,788

3,183

Cash and cash equivalents

34

Current tax assets

Assets and disposal group of assets classified as held for sale

6

Total assets

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 08 l

7,489

7,271

51,46446,932

1,779

750

106,681

96,102Financial Statements 2015
Airbus Group SE — IFRS Consolidated Financial Statements

Note(In € million)

2015

2014

Equity and liabilities
Equity attributable to equity owners of the parent
Capital stock

785

785

Share premium

3,484

4,500

Retained earnings

6,316

2,989

Accumulated other comprehensive income(4,316)(1,205)

Treasury shares

(303)

(8)

5,966

7,061

Non-controlling interests

Total equity

32

7

18

5,973

7,079
10,400Non-current liabilities
Non-current provisions

22

9,871

Long-term financing liabilities

34

6,335

6,278

Non-current other financial liabilities

23

14,038

9,922

Non-current other liabilities

24

14,993

12,849Deferred tax liabilities

15

1,200

1,130

Non-current deferred income

263

267

46,70040,846

5,209

5,712

Current liabilities
Current provisions

22

Short-term financing liabilities

34

2,790

1,073

Trade liabilities

21

11,763

10,183Current other financial liabilities

23

5,021

3,480

Current other liabilities

24

27,03725,222

908

738

Current tax liabilities
Current deferred income

1,049

1,089

53,77747,497231

680

Total liabilities

100,708

89,023

Total equity and liabilities

106,681

96,102

Disposal group of liabilities classified as held for sale

6

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 09 l

1.

Airbus Group SE — IFRS Consolidated Financial Statements

Airbus Group SE — IFRS Consolidated Statements of Cash Flowsfor the years ended 31 December 2015 and 2014

Note

(In € million)

Profit for the period attributable to equity owners of the parent (Net income)
Profit for the period attributable to non-controlling interests
Adjustments to reconcile profit for the period to cash provided by operating activities:
Interest income
Interest expense
Interest received
Interest paid
Income tax expense
Income tax paid
Depreciation and amortisation
Valuation adjustments
Results on disposals of non-current assets
Results of investments accounted for under the equity method
Change in current and non-current provisions
Reimbursement from / contribution to plan assets
Change in other operating assets and liabilities:
Inventories
Trade receivables
Trade liabilities
Advance payments received
Other assets and liabilities
Customer financing assets
Customer financing liabilities
Cash provided by operating activities
Investments:
Purchases of intangible assets, property, plant and equipment, investment property
Proceeds from disposals of intangible assets, property, plant and equipment, investment property
Acquisitions of subsidiaries, joint ventures, businesses and non-controlling interests (net of cash)
Proceeds from disposals of subsidiaries (net of cash)
Payments for investments in associates, joint ventures, other investments and other long-term
financial assets
Proceeds from disposals of associates, joint ventures, 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 for sale and liabilities
directly associatedPayments for investments in securities
Proceeds from disposals of securities
Cash (used for) investing activities
Increase in financing liabilities
Repayment of financing liabilities
Cash distribution to Airbus Group SE shareholders
Dividends paid to non-controlling interests
Changes in capital and non-controlling interests
Change in treasury shares
Share buyback
Cash (used for) provided by financing activities
Effect of foreign exchange rate changes on cash and cash equivalents

9

■

■

■

■

■

■

■

■

■

■

■

6
6

2015

2014

2,696
2

2,343
7

(183)
551
131
(388)
677
(595)
2,466
487
(234)
(1,016)
(54)
(217)
(723)
(4,133)(1,378)
1,603
3,752
(417)
(193)
43
3,600

(142)
462
99
(303)
863
(115)
2,150
562
(93)
(840)
415
(462)
(2,386)(3,252)
(700)
130
1,715
(387)
124
(16)
2,560

(2,924)
78
(13)
127

(2,548)
232
(47)
(34)

(258)

(36)

1,731
34

1,083
143

127
(7,151)
4,790(3,459)
1,254
(262)
(945)
(3)
195
0
(264)
(25)
171

0
(5,526)
3,510(3,223)
2,038(1,108)
(587)
(2)
52
102
0
495
256

287

88

7,289

7,201

■

■

■

7

34.3
34.3
32

32

Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

34.1

7,576

7,289

Thereof presented as cash and cash equivalents
Thereof presented as part of disposal groups classified as held for sale

34.1
6.3

7,489
87

7,271
18

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).
AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 10 l

Financial Statements 2015
Airbus Group SE — IFRS Consolidated Financial Statements

Airbus Group SE — IFRS Consolidated Statements of Changes in Equity
for the years ended 31 December 2015 and 2014

Noncontrolling Total
interests equity

Equity attributable to equity holders of the parent
Accumulated othercomprehensive income(In € million)

Note

CapitalSharestock premium

Available­
Foreignfor-saleCashcurrency
Retained financial
flowtranslation Treasury
earnings
sharesassets hedges adjustments(1)Balance at
1 January 2014

783

5,049

2,167

625

1,101

1,189

Profit for the period

0

0

2,343

0

0

0

Other comprehensive
income00(1,585)45(4,411)

Total comprehensive
income of the period

Total(50) 10,864
042 10,906

2,343

7

2,350

246

0 (5,705)(19)(5,724)0 (3,362)(12)(3,374)

0

0

758

45

(4,411)

246

Capital increase

32

2

50

0

0

0

0

0

52

0

52

Capital decrease

32

0

(12)

0

0

0

0

0

(12)

0

(12)

Share-based payment(IFRS 2)

30

0

0

(5)

0

0

0

0

(5)

0

(5)

Cash distribution
to Airbus Group SE
shareholders / dividends
paid to non-controllinginterests

0

(587)

0

0

0

0

0

(587)

(2)

(589)

Equity transaction (IAS 27)

0

0

(3)

0

0

0

0

(3)

7

4

Change in non-controllinginterests

0

0

0

0

0

0

0

0

(17)

(17)

Change in treasury shares

32

0

0

72

0

0

0

0

72

0

72

Cancellation of treasury
shares

32

42

0

42

0

0

0

0

0

0

42

Balance at
31 December 2014

785

4,500

2,989

670

(3,310)

1,435

(8)

7,061

18

7,079

Profit for the period

0

0

2,696

0

0

0

0

2,696

2

2,698

Other comprehensive
income

0

0

491

165

(3,554)278

0 (2,620)(29)(2,649)Total comprehensive
income of the period

0

0

3,187

165

(3,554)

278

0

76

(27)

49

Capital increase

32

3

115

0

0

0

0

0

118

24

142

Share-based payment(IFRS 2)

30

0

0

29

0

0

0

0

29

0

29

Cash distribution
to Airbus Group SE
shareholders / dividends
paid to non-controllinginterests

32

0

(945)

0

0

0

0

0

(945)

(3)

(948)

0

0

61

0

0

0

0

61

(5)

56

Equity transaction (IAS 27)
Equity component
convertible bond

32

0

0

53

0

0

0

0

53

0

53

Change in treasury shares

32

0

0

(3)

0

0

0

(484)

(487)

0

(487)

Cancellation of treasury
shares

(3)

(186)

0

0

0

0

189

0

0

0

Balance at
31 December 2015

785

3,484

6,316

835 (6,864)

1,713(303) 5,966

7

5,973

(1) In 2015, € 1 million are reclassified from currency translation adjustments to profit or loss.

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 11 l

1.

Chapter

2.
AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 12 l

Financial Statements 2015

Notes to the
IFRS Consolidated Financial Statements
2.1 Basis of Presentation

15

2.2 Group Structure

19

2.3 Segment Information

25

2.4 Group Performance28

2.5 Operational Assets and Liabilities

34

2.6 Employees Costs and Benefits

46

2.7 Capital Structure and Financial Instruments

59

2.8 Other Notes

77

2.9 Appendix “Simplified Group Structure Chart” 80

2.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 13 lNotes to the IFRS Consolidated Financial Statements

CONTENTS

2.1 Basis of Presentation

15

20.

Inventories

39

1.

The Company

15

21.

Trade Receivables and Trade Liabilities

39

2.

Signiﬁcant Accounting Policies

15

22.

3.

Key Estimates and Judgements

17

Provisions, Contingent Assets
and Contingent Liabilities

41

4.

Change in Accounting Policies
and Disclosures

18

Other Financial Assets and Other Financial
Liabilities

42

24.

Other Assets and Other Liabilities

43

25.

Sales Financing Transactions

43

2.2 Group Structure

19

5.

Scope of Consolidation

19

6.

Acquisitions and Disposals

20

7.

Investments Accounted for under
the Equity Method

23.

2.6 Employees Costs and Benefits

46

26.

Number of Employees

46

22

27.

Personnel Expenses

46

Related Party Transactions

25

28.

Personnel-Related Provisions47

2.3 Segment Information

25

29.

Post-Employment Beneﬁts

47

30.

Share-Based Payment

53

9.

Segment Information

26

31.

Remuneration

56

2.4 Group Performance

28

8.

10.

Revenues, Cost of Sales and Gross Margin 28

2.7 Capital Structure andFinancial Instruments

59

11.

Research and Development Expenses

29

32.

Total Equity

59

12.

Share of Proﬁt from Investments Accounted
for under the Equity Method and Other
Income from Investments
29

33.

Capital Management

61

34.

Net Cash62

13.

Other Income and Other Expenses

29

35.

Information about Financial Instruments

64

14.

Total Finance Costs

30

15.

Income Tax

30

16.

Earnings per Share33

2.5 Operational Assets
and Liabilities

34

17.

Intangible Assets

34

18.

Property, Plant and Equipment

36

19.

Other Investments and Other
Long-Term Financial Assets

38

2.8 Other Notes

77

36.

Litigation and Claims

77

37.

Auditor Fees

79

38.

Events after the Reporting Date79

2.9 Appendix “Simplified Group
Structure Chart”

80

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 14 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.1 Basis of Presentation

2.1 Basis of Presentation
1.

The Company

The accompanying IFRS Consolidated Financial Statements
present the ﬁnancial position and the results of operations ofAirbus Group SE, the “Company” or “Airbus Group”, (formerly
Airbus Group N.V.) and its subsidiaries (the “Group”), legallyseated in Amsterdam (current registered ofﬁce at Mendelweg 30,2333 CS Leiden, The Netherlands). On 28 May 2015, the legal
form of the Group has changed from a Dutch public limited
company (N.V.) to a European company (SE) and is consistently

2.

subject to the laws of the Dutch Civil Code. Airbus Group is listedon the European stock exchanges in Paris, Frankfurt am Main,
Madrid, Barcelona, Valencia and Bilbao. The IFRS Consolidated
Financial Statements were authorised for issue by the Group’s
Board of Directors on 23 February 2016. They are preparedand reported in euro (“€”) and all values are rounded to thenearest million appropriately.

Signiﬁcant Accounting Policies

Basis of preparation — The Group’s Consolidated Financial
Statements are prepared in accordance with International
Financial Reporting Standards (“IFRS”), issued by theInternational Accounting Standards Board (“IASB”) as endorsedby the European Union (“EU”) and with Part 9 of Book 2 of theNetherlands Civil Code. When reference is made to IFRS, thisintends to be EU-IFRS. The Consolidated Financial Statements
have been prepared on a historical cost basis, unless otherwise
indicated.
Airbus Group describes the accounting policies applied in eachof the individual notes to the ﬁnancial statements and avoids
repeating the text of the standard, unless this is considered
relevant to the understanding of the note’s content. The mostsigniﬁcant accounting policies are set out below:
Revenue recognition — Revenue is recognised to the extent that
it is probable that the economic beneﬁt arising from the ordinary
activities of the Group will ﬂow to the Group, that revenue can bemeasured reliably and that the recognition criteria, for each typeof revenue-generating activity (sales of goods and services andconstruction contracts), have been met. Revenue is measured at
the fair value of the consideration received or receivable.
Revenues from the sale of commercial aircraft arerecognised when the aircraft is delivered, risks and rewards ofownership have been transferred to the customer and revenues
can be measured reliably except for launch customer contracts(see “Revenue from construction contracts”). Revenues fromsales of aircraft (and related cost of sales) always include theengine component. Customers will generally beneﬁt from a
concession from the engine manufacturer, negotiated directly
between the customer and the engine manufacturer. Whenreliable information exists, the engine prices considered in ourrevenues (and cost of sales) reﬂect the effect of the concessions.

Revenue from construction contracts — Construction contract
accounting is applied for military programmes, space projects aswell as for launch customer contracts in the civil aircraft business
if customers have signiﬁcantly inﬂuenced the structural design
and technology of the aircraft type under the contract. As aresult of certain airline customers’ increasing involvement in
the development and production process of the A350 XWB
programme, the Group applies IAS 11 to a ﬁxed number oflaunch customer contracts of the A350 XWB programme. Whenthe outcome can be estimated reliably, revenues and contract
costs are recognised as revenue and expensed respectively byreference to the percentage of completion of the contract activity
at the end of the reporting period (“PoC method”). Contract
revenues include the purchase price agreed with the customer
considering escalation formulas, contract amendments andclaims and penalties when assessed as probable. The PoC
method used depends on the contract. The method is based
either on inputs (i.e. costs incurred for development contracts) or
outputs (i.e. contractually agreed technical milestones, delivered
units).
Whenever the outcome of a construction contract cannot
be estimated reliably – for example during the early stagesof a contract or during the course of a contract’s completion– all related contract costs that are incurred are immediately
expensed and revenues are recognised only to the extent of
those costs being recoverable (the “early stage”, also called“zero proﬁt margin” method of accounting) (see Note 3 “Keyestimates and judgements”).
Provision for loss making contracts — The Group records
provisions for loss making contracts when it becomes probablethat the total contract costs will exceed total contract revenues.
Before a provision for loss making contracts is recorded, the

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 15 l2.

Notes to the IFRS Consolidated Financial Statements
2.1 Basis of Presentation

related assets under construction are written-off. Loss making
sales contracts are identiﬁed by monitoring the progress of thecontract as well as the underlying programme and updating
the estimate of contract costs, which requires signiﬁcant andcomplex assumptions, judgements and estimates related toachieving certain performance standards as well as estimates
involving warranty costs (see Note 3 “Key estimates andjudgements”, Note 10 “Revenues, cost of sales and grossmargin” and Note 22 “Provisions, contingent assets andcontingent liabilities”).
Research and development expenses — Research anddevelopment activities can be either contracted or self-initiated.
The costs for contracted research and development activities,
carried out in the scope of externally ﬁnanced research anddevelopment contracts, are expensed when the related
revenues are recorded.
The costs for self-initiated research are expensed when incurred.
The costs for self-initiated development are capitalised when:
the product or process is technically feasible and clearlydeﬁned (i.e. the critical design review is ﬁnalised);■adequate resources are available to successfully complete
the development;■
the beneﬁts from the assets are demonstrated (a market exists
or the internal usefulness is demonstrated) and the costs
attributable to the projects are reliably measured;■
the Group intends to produce and market or use the developed
product or process and can demonstrate its proﬁtability.
■

Income tax credits granted for research and development
activities are deducted from corresponding expenses or from
capitalised amounts when earned.
Development costs which are capitalised, are recognised either
as intangible assets or, when the related development activities
lead to the construction of specialised tooling for production(“jigs and tools”), or involve the design, construction and testingof prototypes and models, as property, plant and equipment.
Capitalised development costs are generally amortised overthe estimated number of units produced. If the number ofunits produced cannot be estimated reliably, capitalised
development costs are amortised over the estimated usefullife of the internally generated intangible asset. Amortisation ofcapitalised development costs is recognised in cost of sales.
Inventories are measured at the lower of acquisition cost
(generally the average cost) or manufacturing cost and net
realisable value. Manufacturing costs comprise all costs thatare directly attributable to the manufacturing process, such as
direct material and labour, and production related overheads(based on normal operating capacity and normal consumptionof material, labour and other production costs), including
depreciation charges. Net realisable value is the estimatedselling price in the ordinary course of the business less theestimated costs to complete the sale. Inventories include workin progress arising under construction contracts for whichrevenues are recognised based on output methods.
Transactions in foreign currency, i.e. transactions incurrencies other than the functional currency of a Group
entity, are translated into the functional currency at the foreignexchange rate prevailing at the transaction date. Monetary
assets and liabilities denominated in foreign currencies at theend of the reporting period are remeasured into the functional
currency at the exchange rate in effect at that date. Except
when deferred in equity as qualifying cash ﬂow hedges (seeNote 35 “Information about ﬁnancial instruments”), these foreignexchange remeasurement gains and losses are recognised, inline with the underlying item:in the proﬁt before ﬁnance costs and income taxes if thesubstance of the transaction is commercial (including sales
ﬁnancing transactions); and■in the ﬁnance costs for ﬁnancial transactions.
■Non-monetary assets and liabilities denominated in foreign
currencies that are stated at historical cost are translated
into functional currency at the foreign exchange rate ineffect at the date of the transaction. Translation differenceson non-monetary financial assets and liabilities that aremeasured at fair value are reported as part of the fairvalue gain or loss. However, translation differences of
non-monetary financial assets measured at fair value andclassified as available-for-sale are included in Accumulated
other comprehensive income (“AOCI”).
Hedge accounting — Most of the Group’s revenue isdenominated in US dollar (“US$”), while a major portion of its
costs is incurred in euro. The Group is signiﬁcantly exposed to
the risk of changes in US$/€ exchange rates. Furthermore, theGroup is exposed, though to a much lesser extent, to foreignexchange risk arising from costs incurred in currencies otherthan the euro and to other market risks such as interest raterisk, commodity price and equity price risk.
In order to manage and mitigate those risks, the Group enters
into derivative contracts. The Group applies cash ﬂow hedge
accounting to its derivative contracts whenever the relevant IFRS
criteria can be met. Hedge accounting ensures that derivative
gains or losses are recognised in proﬁt or loss (mainly as partof the revenue) in the same period that the hedged items ortransactions affect proﬁt or loss.
The major portion of the Group’s derivative contracts is
accounted for under the cash ﬂow hedge model. The fair value
hedge model is used only for certain interest rate derivatives.
Derivative contracts which do not qualify for hedge accounting
are accounted for at fair value through proﬁt and loss, any related
gains or losses being recognised in ﬁnancial result.
The Group’s hedging strategies and hedge accounting policies
are described in more detail in Note 35 “Information about
ﬁnancial instruments”.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 16 lFinancial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.1 Basis of Presentation

3.

Key Estimates and Judgements

The preparation of the Group’s Consolidated F inancial
Statements requires the use of estimates and assumptions.
In preparing these financial statements, management
exercises its best judgement based upon its experience andthe circumstances prevailing at that time. The estimates andassumptions are based on available information and conditions
at the end of the ﬁnancial period presented and are reviewed on
an ongoing basis. Key estimates and judgements that have asigniﬁcant inﬂuence on the amounts recognised in the Group’s
Consolidated Financial Statements are mentioned below:

Estimates and judgements are subject to change based on new
information as contracts and related programmes progress.
Furthermore, the complex design and manufacturing processesof the Group’s industry require challenging integration andcoordination along the supply chain including an on-goingassessment of suppliers’ assertions which may additionallyimpact the outcome of these monitoring processes (see Note 10“Revenues, cost of sales and gross margin” and Note 22“Provisions, contingent assets and contingent liabilities” forfurther information).

Revenue recognition on construction contracts — The
PoC method is used to recognise revenue under construction
contracts. This method places considerable importance on
accurate estimates at completion as well as on the extent ofprogress towards completion. For the determination of the
progress of the construction contract signiﬁcant estimates
include total contract costs, remaining costs to completion,
total contract revenues, contract risks and other judgements.

Employee beneﬁts — The Group accounts for pension andother post-retirement beneﬁts in accordance with actuarial
valuations. These valuations rely on statistical and otherfactors in order to anticipate future events. The actuarial
assumptions may differ materially from actual developments
due to changing market and economic conditions and therefore
result in a signiﬁcant change in post-retirement employee
beneﬁt obligations and the related future expense (see Note 29“Post-employment beneﬁts”).

The management of the operating Divisions continually review
all estimates involved in such construction contracts and adjusts
them as necessary (see Note 21 “Trade receivables and tradeliabilities” for further information).
Provisions — The determination of provisions, for example forcontract losses, warranty costs, restructuring measures andlegal proceedings is based on best available estimates. Lossmaking contracts are identiﬁed by monitoring the progress ofthe contract as well as the underlying programme and updating
the estimate of contract costs, which also requires signiﬁcantjudgement related to achieving certain performance standards
as well as estimates involving warranty costs. Dependingon the size and nature of the Group’s contracts and related
programmes, the extent of assumptions, judgements andestimates in these monitoring processes differs. In particular, theintroduction of new commercial or military aircraft programmes(such as the A350 XWB and the A400M) or major derivative
aircraft programmes particularly involves an increased levelof estimates and judgements associated with the expecteddevelopment, production and certification schedules andexpected cost components.
The Group 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 and circumstances. The
Group is contractually liable for the repair or replacement of
the defective parts but not for any other damages whether
direct, indirect, incidental or consequential (including loss ofrevenue, proﬁt or use). However, in view of overall commercial
relationships, contract adjustments may occur, and beconsidered on a case by case basis.

Legal contingencies — Group companies are parties tolitigations related to a number of matters as described in
Note 36 “Litigation and claims”. The outcome of these matters
may have a material effect on the ﬁnancial position, results ofoperations or cash ﬂows of the Group. Management regularly
analyses current information about these matters and provides
provisions for probable cash outﬂows, including the estimateof legal expenses to resolve the matters. Internal and externallawyers are used for these assessments. In making the decision
regarding the need for provisions, management considers thedegree of probability of an unfavourable outcome and the ability
to make a sufﬁciently reliable estimate of the amount of loss.
The ﬁling of a suit or formal assertion of a claim against Group
companies or the disclosure of any such suit or assertion, does
not automatically indicate that a provision may be appropriate.
Income taxes — The Group operates and earns income innumerous countries and is subject to changing tax laws in multiple
jurisdictions within these countries. Signiﬁcant judgements arenecessary in determining the worldwide income tax liabilities.
Although management believes that it has made reasonableestimates about the ﬁnal outcome of tax uncertainties, noassurance can be given that the ﬁnal tax outcome of thesematters will be consistent with what is reﬂected in the historicalincome tax provisions. At each end of the reporting period, theGroup assesses whether the realisation of future tax beneﬁts
is probable to recognise deferred tax assets. This assessment
requires the exercise of judgement on the part of managementwith respect to, among other things, beneﬁts that could be
realised from available tax strategies and future taxable income,as well as other positive and negative factors. The recorded

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 17 l2.

Notes to the IFRS Consolidated Financial Statements
2.1 Basis of Presentation

amount of total deferred tax assets could be reduced, throughvaluation allowances recognition, if estimates of projected futuretaxable income and beneﬁts from available tax strategies arelowered, or if changes in current tax regulations are enacted that
impose restrictions on the timing or extent of the Group’s ability
to utilise future tax beneﬁts. The basis for the recoverability testof deferred tax assets is the same as the Group’s latest ﬁve year
operative planning also taking into account certain qualitative
aspects regarding the nature of the temporary differences.

4.

Qualitative factors include but are not limited to an entity’s historyof planning accuracy, performance records, business model,
backlog, existence of long-term contracts as well as the natureof temporary differences (see Note 15 “Income tax”).
Other subjects that involve assumptions and estimates
are further described in the respective notes (see Note 6“Acquisitions and disposals”, Note 17 “Intangible assets” andNote 21 “Trade receivables and liabilities”.

Change in Accounting Policies and Disclosures

First-time Application
The accounting policies applied by the Group for preparing its 2015 year-end Consolidated Financial Statements are the same aslast year except for the ﬁrst time application of IFRIC 21 “Levies” which has not had a material impact on the Group’s Consolidated
Financial Statements or on its basic and diluted earnings per share.

New, Revised or Amended IFRS Standards and Interpretations Issued but not yet Applied
A number of new or revised standards, amendments and improvements to standards as well as interpretations are not yet effective
for the year ended 31 December 2015 and have not been applied in preparing these Consolidated Financial Statements andearly adoption is not planned:
IASB effective date forannual reporting periods
beginning on or afterEndorsement
statusIFRS 9 “Financial instruments”

1 January 2018

Not yet endorsed

IFRS 15 “Revenue from contracts with customers”

1 January 2018

Not yet endorsed

Amendment to IAS 1 “Disclosure initiative”

1 January 2016

Endorsed-

Not yet endorsed

1 January 2016

EndorsedStandards and amendments

Amendments to IFRS 10 and IAS 28 “Sale or contribution of assets between
an investor and its associate or joint venture”
Amendments to IFRS 11 “Accounting for acquisition of interests in joint operations”
Amendments to IAS 16 and IAS 38 “Clarification of acceptable methodsof depreciation and amortisation”

1 January 2016

Endorsed

Annual improvements to IFRS 2012-2014

1 January 2016

Endorsed

IFRS 9 “Financial Instruments”

IFRS 15 “Revenue from Contracts with Customers”

IFRS 9, published in July 2014, replaces the existing guidance in
IAS 39 “Financial instruments: recognition and measurement”.
IFRS 9 includes revised guidance on the classiﬁcation andmeasurement of ﬁnancial instruments, including a new expectedcredit loss model for calculating impairment on ﬁnancial assets,
and the new general hedge accounting requirements. It also
carries forward the guidance on recognition and derecognitionof ﬁnancial instruments from IAS 39.

On May 2014, the IASB issued IFRS 15 which establishes asingle comprehensive framework for determining when torecognise revenue and how much revenue to recognise. IFRS 15
will replace the current revenue recognition standards IAS 18“Revenue” and IAS 11 “Construction contracts” and related
interpretations when it becomes effective.

An assessment of the materiality of IFRS 9 impact on theGroup’s Financial Statements is currently being performed.

IFRS 15 will require the Group to identify the different performanceobligations it assumes under a contract, and account for themseparately based on their relative stand-alone selling prices.
For all contracts, including long-term construction contracts
currently accounted for under the PoC method, the Groupwill only be able to recognise revenue once certain conditions

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 18 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.2 Group Structure

providing evidence that control of a good or service hastransferred to the customer are met. In certain circumstances,
the standard considers work in progress to be controlled by
the customer, in which case it would be inappropriate for anentity to recognise work in progress as an asset on its balance
sheet. Furthermore, the standard requires an entity to accrue
interest on advance payments if the contract with the customer
contains a signiﬁcant ﬁnancing component.

The Group is currently assessing the impact of these andother accounting changes that will arise under IFRS 15. It has,
however, identiﬁed the changes highlighted above as potentiallycreating a material impact on the Group’s Consolidated Income
Statement and Consolidated Statement of Financial Position.

2.2 Group Structure
5.

Scope of Consolidation

Consolidation — The Group’s Consolidated Financial
Statements include the ﬁnancial statements of Airbus GroupSE and all material subsidiaries controlled by the Group. The
Group’s subsidiaries prepare their ﬁnancial statements at thesame reporting date as the Group’s Consolidated Financial
Statements (see Appendix “Simpliﬁed Group Structure Chart”).
Subsidiaries are entities controlled by the Group including
so- called Structured Entities (“SE”) which are created toaccomplish a narrow and well-deﬁned objective (see Note 25“Sales ﬁnancing transactions”). They are fully consolidated fromthe date control commences to the date control ceases.
The assessment of the control of SE is performed in three steps.
In a ﬁrst step, the Group identiﬁes the relevant activities of theSE (which may include managing lease receivables, managing

the sale or re-lease at the end of the lease and managing thesale or re-lease on default) and in a second step, the Groupassesses which activity is expected to have the most signiﬁcant
impact on the SE’s return. Finally, the Group determines whichparty or parties control this activity.
The Group’s interests in equity-accounted investees
comprise investments in associates and joint ventures.
Investments in associates and in joint ventures are accounted
for using the equity method and are initially recognised at cost.
The financial statements of the Group’s investments inassociates and joint ventures are generally prepared for thesame reporting period as for the parent company. Adjustments
are made where necessary to bring the accounting policies andaccounting periods in line with those of the Group.

PERIMETER OF CONSOLIDATION
31 December

Number of companies

2015

2014

Fully consolidated entities

262

286

Investments accounted for using the equity method:■in joint ventures

53

50

■

in associates

19

17

334

353

Total

For more details related to unconsolidated and consolidated SE, please refer to Note 25 “Sales ﬁnancing transactions”.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 19 l2.

Notes to the IFRS Consolidated Financial Statements
2.2 Group Structure

6.

Acquisitions and Disposals

Business combinations are accounted for using the acquisition
method, as at the acquisition date, which is the date on which
control is transferred to the Group.
The determination of the fair value of the acquired assets andthe assumed liabilities which are the basis for the measurementof goodwill requires signiﬁcant estimates. Land, buildings andequipment are usually independently appraised while marketablesecurities are valued at market prices. If any intangible assets
are identiﬁed, depending on the type of intangible asset and thecomplexity of determining its fair value, the Group either consultswith an independent external valuation expert or develops thefair value internally, using appropriate valuation techniques
which are generally based on a forecast of the total expected
future net cash ﬂows.
These evaluations are linked closely to the assumptions madeby management regarding the future performance of the assets
concerned and the discount rate applied.
Loss of control, loss of joint control, loss of signiﬁ cantinﬂuence — Upon loss of control of a subsidiary, the assets andliabilities and any components of the Group’s equity related tothe subsidiary are derecognised. Any gain or loss arising fromthe loss of control is recognised within other income or otherexpenses in the Consolidated Income Statement. If the Groupretains any interest in the previous subsidiary, such interest ismeasured at fair value at the date the control is lost.
Assets and liabilities of a material subsidiary for which a loss ofcontrol is highly probable are classiﬁed as assets and liabilities
held for sale when the Company has received sufﬁcient evidence
that the loss of control will occur in the 12 months after theclassiﬁcation. These assets and liabilities are presented after
elimination of intercompany transactions.
When the loss of signiﬁcant inﬂuence or the loss of joint control
of an investment accounted under the equity method is highly
probable and will occur in the coming 12 months, this associate
or joint venture is classiﬁed as an asset held for sale.
Sale of investment in an associate or joint venture — Anygain or loss arising from the disposal of investment accounted
for under the equity method is recognised within share of proﬁt
from investments accounted for under the equity method.

6.1

Acquisitions

There were no material acquisitions in 2015 and 2014.

6.2

Disposals

On 14 January 2015, Airbus Group and Safran completed
the ﬁrst phase of the integration process of Airbus Safran
Launchers Joint Venture (“ASL”) enabling the entity to become
operational. Coordination and programme management of
the civil activities of the launcher business as well as relevant
participations have been transferred to ASL during this ﬁrst
phase. The assets and liabilities associated with the ﬁrst phasewere classiﬁed as held for sale as at 31 December 2014.
Airbus Group received 50% of issued shares in ASL initiallyrecognised at € 56 million as at-equity investment. The loss ofcontrol in the business resulted in a capital gain of € 49 million,
which is reported in Airbus Defence and Space Division in otherincome.
During the second phase, Safran and Airbus Group intend tointegrate within the joint venture all the remaining contracts,
assets and industrial resources, related to space launchers andassociated propulsion systems.
On 16 June 2015, ASL, the French state and CNES, the French
space agency, have reached an agreement to transfer CNES’s
stake in Arianespace to ASL. On 12 August 2015, ASL wasawarded the Ariane 6 development contract by the European
Space Agency.
The second phase will be initiated and implemented once alllegal and ﬁnancial terms and conditions are ﬁnalised between
both partners. The joint venture will then be fully equipped forall design, development, production and commercial activities
related to civil and military launchers and associated propulsion
systems.
On 20 August 2015, Airbus Defence and Space GmbH,
Rohde & Schwarz GmbH und Co. KG, Thales Electronic
Systems GmbH and Northrop Grumman Litef GmbH sold theirshares in Elektroniksystem und Logistik GmbH (“ESG”) to
E-Sicherheitsbeteiligungen GmbH. Airbus Group recognised a€ 59 million gain in share of proﬁt from investments accounted forunder the equity method, which is reported in Airbus Defence
and Space Division. The assets and liabilities of this company
were classiﬁed as held for sale as at 31 December 2014.
On 1 October 2015, Airbus sold its shares in its fully owned
subsidiary Cimpa SAS to Sopra Steria Group. The gain on thisdisposal which is recognised in other income for € 72 million, isreported in Airbus Division.
On 28 February 2014, EADS North America, Inc., Herndon(VA, USA) sold 100% of the assets and liabilities of its Test &Services division to Astronics Corp., East Aurora (NY, USA), fora total consideration of € 51 million, which is reported in Airbus
Defence and Space Division.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 20 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.2 Group Structure

On 7 March 2014, Astrium Services GmbH, Ottobrunn (Germany)
disposed of 100% of the shares of ND Satcom GmbH,
Immenstaad (Germany) to Quantum Industries S.à.r.l.,Luxembourg (Luxembourg) with economic effect as of 1 March2014 leading to a negative consideration of € 9 million, which isreported in Airbus Defence and Space Division.
On 10 July 2014, Airbus Defence and Space sold its Test
& Services activities to a consortium consisting of ACE
Management S.A., Paris (France) and IRDI S.A., Toulouse(France). The disposal was performed via an acquisition
company Test & Mesures Groupe SAS in which Airbus
Defence and Space will retain temporarily 33.5%. The total
consideration received amounted to € 35 million (thereof€ 28 million consideration received in cash and € 7 million forthe shares in Test & Mesures Groupe SAS). The amount of net
assets sold was € 31 million. The Group recognised a € 7 million
capital gain on the sale of the Test & Services activities reported
in other income, which is reported in Airbus Defence and Space
Division.
On 27 November 2014, Airbus Group in an off-market lock tradesold to Dassault Aviation a total of 810,072 Dassault Aviation
shares at a price of € 980 per share representing a total amountof € 794 million pre-transaction costs. The gain recognised inshare of proﬁt from investments accounted for under the equity
method amounted to € 343 million and reported in “Others /HQ / Conso.” segment.
On 9 December 2014, Airbus Group signed a share purchaseagreement with the State of Finland to sell its entire 26.8%
share in Patria Oyj to the Finnish defence, security and aviation
services provider for a total consideration of € 133 million. The
transaction was closed on 11 December 2014 and the Group
recognised a € 47 million capital gain within share of proﬁt
from investments accounted for under the equity method. The
transaction has been reported in Airbus Defence and Space
Division.

6.3

Assets and Disposal Groups Classiﬁed
as Held for Sale

As of 31 December 2015, Airbus Group accounted for noncurrent assets / disposal groups classiﬁed as held for salein the amount of € 1,779 million (2014: € 750 million). The
disposal groups in 2015 include liabilities directly associatedwith non-current assets classiﬁed as held for sale amounting
to € 231 million (2014: € 680 million). The assets and disposalgroups classified as held for sale comprise the following
transactions:
On 25 March 2015, Airbus Group sold 1,612,407 Dassault
Aviation shares, corresponding to 17.5% of the Dassault
Aviation’s share capital, of which 460,688 shares (5%) were soldto Dassault Aviation for € 980 per share and 1,151,719 shares(12.5%) were sold to institutional investors at € 1,030 per share.
On 14 April 2015, Airbus Group sold an additional 115,172 shares(1.25%) to institutional investors at € 1,030 per share.
As of 31 March 2015, the remaining equity investment in
Dassault Aviation with the carrying amount of € 1,320 million has
been classiﬁed as an asset held for sale (reported in “Others /HQ / Conso.” segment) as Airbus Group intends to pursue
market opportunities to sell the remainder of this investment.
Prior to the reclassiﬁcation, the carrying amount included theAirbus Group interest in Dassault Aviation’s ﬁrst quarter 2015
result and a negative catch-up on 2014 of € -119 million.
In 2015, Airbus Group has recognised € 748 million (€ 697 million
in share of proﬁt from investments accounted for under theequity method and € 51 million in other income) representing
the net capital gain on partial disposal after transaction costs.
As of 31 December 2015, Airbus Group holds 23.60% of
Dassault Aviation’s share capital and 24.71% of associatedvoting rights and the carrying amount of the assets held forsale amounts to € 1,253 million. As of 31 December 2014, thecarrying amount of the investment in Dassault Aviation was€ 2,429 million recognised in investment accounted for underthe equity method.
On 17 June 2015, Airbus signed an agreement with
Singapore-based ST Aerospace Ltd. (STA) to of fer
passenger-to-freighter (P2F) conversion solutions for its A320
and A321 aircraft. STA will acquire an additional 20% of theshares of Elbe Flugzeugwerke (EFW), Dresden (Germany)by way of a contribution in kind and a capital increase to EFW.
Consequently, 45% of the shares of EFW will be retained andthe Group will effectively lose its control over EFW (reported in
Airbus Division). The transaction has been closed on 4 January
2016.
On 17 December 2015, DS Holding SAS (France) and Astrium
International Holdings B.V. (as beneﬁciaries) and a buyer signed
a sale purchase agreement in respect to the companies which
form the business communications perimeter. The sale issubject to closing conditions. The transaction has been reported
in Airbus Defence and Space Division.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 21 l2.

Notes to the IFRS Consolidated Financial Statements
2.2 Group Structure

The assets and disposal group of assets and liabilities classiﬁed as held for sale consist of:
31 December

2015

2014

Intangible assets

144

23

Property, plant and equipment

1250

Non-current financial assets

1,253

0

(In € million)

Inventory

75

447

Trade receivables

84

262

Other assets

110Cash and cash equivalents

Assets and disposal group of assets classified as held for sale
Provisions
Customer advance payments

87

18

1,779

750

69

3

0

674

Other liabilities

162

3

Disposal group of liabilities classified as held for sale

231

680

7.

Investments Accounted for under the Equity Method

31 December(In € million)

2015

Investments in joint ventures

1,264

885

Investments in associates

62

2,506

1,326

3,391

Investments accounted for under the equity method

7.1

2014

Investments in Joint Ventures

The joint ventures in which the Group holds interests are
structured in separate incorporated companies. Under the joint
arrangement agreements, unanimous consent is required fromall parties to the agreement for all relevant activities. The Groupand its partners have rights to the net assets of the company
through the terms of the contractual agreements.

Atlas is a joint venture of Thyssen Krupp and the Group (which
held a 49% stake at 31 December 2015 and 2014). It provides
maritime and naval solutions above and below the ocean
surface and holds a leading position in all ﬁelds of maritime
high technology from command and control systems to coastal
surveillance systems and in in-house support.

The Group’s material joint ventures are MBDA S.A.S., Paris(France), Atlas Elektronik GmbH (“Atlas”), Bremen (Germany)and GIE ATR, Blagnac (France), as parent companies of theirrespective groups. Neither of these joint venture companies ispublicly listed.

GIE ATR is manufacturing advanced turboprop aircraft. It is a
50% joint venture between Alenia Aermacchi, a Finmeccanica
group company and Airbus Group. Both Alenia Aermacchi and
Airbus Group provide airframes which are assembled by GIE
ATR in France. The members of ATR GIE are legally entitledto the whole beneﬁts of the company and are liable for thecommitments of the company. GIE ATR is obliged to transfer
its cash to each member of the joint venture.

The Group held a 37.5% stake in MBDA at 31 December 2015
and 2014, which is a joint venture between the Group, BAE
Systems and Finmeccanica. MBDA offers missile systems
capabilities that cover the whole range of solutions for air
dominance, ground-based air defence and maritime superiority,
as well as advanced technological solutions for battleﬁeld
engagement.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 22 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.2 Group Structure

The following table summarises ﬁnancial information for MBDA, Atlas and GIE ATR based on their Consolidated Financial Statements
prepared in accordance with IFRS:
MBDA

Atlas

GIE ATR(In € million)

2015

2014

2015

2014

2015

2014

Revenues

2,875

2,394

405

416

1,760

1,367

(86)

(83)

(14)

(14)

(50)

(35)

Interest income

2

16

3

1

1

0

Interest expense

(15)

(1)

(4)

(5)

(2)

(1)

Depreciation and amortisation

Income tax expense

(74)

(64)

(2)

(9)

0

0

Profit from continuing operations

218

148

(2)

12

340

127

65

(189)

9

(15)

16

29

283

(41)

7

(3)

356

156

Other comprehensive income

Total comprehensive income (100%)
Non-current assets

2,010

1,967

248

197

94

119

Current assets

5,384

5,298

437

555

639

583

1,420

1,521

132

255

5

5

1,249

1,307

344

297

111

366

thereof cash and cash equivalents
Non-current liabilities
thereof non-current financial liabilities(excluding trade and other payables and provisions)
Current liabilities
thereof current financial liabilities(excluding trade and other payables and provisions)

Total equity (100%)

9

13

2

3

0

0

5,811

5,845

173

293

159

100

26

26

2

2

0

0

334

113

168

162

463

236

MBDA
(In € million)

Atlas

GIE ATR

2015

2014

2015

2014

2015

2014

Group’s interest in equity on investee

125

42

82

79

232

118

Goodwill

282

282

257

257

0

0

Fair value adjustments and modifications for differencesin accounting policies

(13)

(18)

(9)

(9)

0

0

Carrying amount of the investment
at 31 December

394

306

330

327

232

118

The development of these investments is as follows:
MBDA(In € million)

Atlas

GIE ATR

2015

2014

2015

2014

2015

2014

Group’s interest in equity on investee at beginningof the year

306

381

327

351

118

93

Result from continuing operations attributable to the Group

84

56

(1)

6

170

64

Other comprehensive income attributable to the Group

28

(74)

4

(7)

8

14

Dividends received during the year

(24)

(57)

0

(23)

(64)

(53)

Carrying amount of the investment
at 31 December

394

306

330

327

232

118

The Group’s share of contingent liabilities of MBDA and of Atlas as of 31 December 2015 is € 399 million (2014: € 329 million) and€ 9 million (2014: € 15 million), respectively.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 23 l2.

Notes to the IFRS Consolidated Financial Statements
2.2 Group Structure

Furthermore, the Group has interests in a number of individually immaterial joint ventures, being accounted for under the equity
method. They are stated in aggregate in the following table:
2015

2014

Group’s interest in equity on investee at beginning of the year

134

139

Result from continuing operations attributable to the Group

(10)

(7)

(In € million)

Other comprehensive income attributable to the Group

6

2

Dividends received during the year

(1)0

New joint ventures

179

0

Carrying amount of the investment at 31 December

308

134

The Group’s share of contingent liabilities of its joint ventures as of 31 December 2015 amounts to € 0 million (2014: € 2 million).

7.2

Investments in Associates

In 2015, the Group has interests in a number of individually immaterial associates, being accounted for under the equity method.
They are stated in aggregate in the following table:(In € million)

Group’s interest in equity on investee at beginning of the year

2015

2014

77

147

Result from continuing operations attributable to the Group

40

76

Other comprehensive income attributable to the Group

(29)

(35)

Dividends received during the year

(10)

(20)

Disposal of shares

(16)

(91)

Carrying amount of the investment at 31 December

6277

As of 31 December 2014, the Group’s only individually material
investment in associates was Dassault Aviation (42.11%) witha carrying amount of € 2,429 million. Following the partial saleof Dassault Aviation shares in the ﬁnancial year 2015 (for moredetails, please see Note 6 “Acquisitions and disposals”), theremaining equity investment in Dassault Aviation has been
reclassiﬁed as asset held for sale.

The cumulative unrecognised comprehensive loss amounts
for these associates to € -117 million and € -147 million as of
31 December 2015 and 2014, respectively (thereof €+30 million
for the period).

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 24 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.3 Segment Information

8.

Related Party Transactions(In € million)

Sales of goods
and services
and otherincomePurchases ofgoods andservices andother expense

Receivables
due as of
31 December

Payablesdue as of
31 December

Otherliabilities /Loans
received as of
31 December

2015
Total transactions with associates
Total transactions with joint ventures

7

40

96

4

79

1,771

121

1,850

14

544

2014
Total transactions with associates
Total transactions with joint ventures

7

116

3

5

79

2,141

122

1,451

13

601

Transactions with unconsolidated subsidiaries are immaterial
to the Group’s Consolidated Financial Statements.
A part of the shares in Dassault Aviation were sold back to
Dassault Aviation during 2015 and 2014 (for more details, please
see Note 6 “Acquisitions and disposals”).
As of 31 December 2015, the Group granted guarantees of€ 503 million to Air Tanker group in the UK (2014: € 474 million).

For information regarding the funding of the Group’s pension
plans, which are considered as related parties, please refer toNote 29 “Post-employment beneﬁts”.
The information relative to compensation and beneﬁts granted
to members of the Executive Committee and Board of Directors
are disclosed in Note 31 “Remuneration”.

2.3 Segment Information
The Group operates in three reportable segments which reﬂect
the internal organisational and management structure according
to the nature of the products and services provided.
Airbus — Development, manufacturing, marketing and saleof commercial jet aircraft of more than 100 seats; aircraft
conversion and related services; development, manufacturing,marketing and sale of regional turboprop aircraft and aircraftcomponents.
■
Airbus Helicopters — Development, manufacturing,marketing and sale of civil and military helicopters; provisionof 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 secure communications
solutions and logistics; training, testing, engineering and otherrelated services; development, manufacturing, marketingand sale of missiles systems; development, manufacturing,marketing and sale of satellites, orbital infrastructures andlaunchers; 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 theGroup’s 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 and Airbus Defence
and Space and between Airbus Helicopters and Airbus. The
Group’s activities managed in the US, the holding function of
the Group’s Headquarters, the Airbus Group bank and otheractivities not allocable to the reportable segments, combined
together with consolidation effects, are disclosed in the column“Others / HQ / Conso.”.
Airbus Group uses EBIT pre-goodwill impairment andexceptionals as a key indicator of its economic performance.
The term “exceptionals” refers to such items as depreciation
expenses of fair value adjustments relating to the former EADS
merger and the Airbus combination, as well as impairment
charges thereon. It also comprises disposal impacts related
to goodwill and fair value adjustments from these transactions.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 25 l2.

Notes to the IFRS Consolidated Financial Statements
2.3 Segment Information

9.

Segment Information

Business segment information for the year ended the 31 December 2015 is as follows:
AirbusDefence and
Space

Total
segments

Others /HQ /Conso.

Consolidated
66,016(In € million)

AirbusAirbusHelicopters

Total revenues

45,854

6,786

13,08065,720296

Internal revenues

(764)

(633)

(163)

(1,560)(6)(1,566)

Revenues

45,0906,153

12,91764,160290

64,450EBIT pre-goodwill impairment
and exceptionals

2,301

427

745

3,473

613

4,086

thereof:■depreciation and amortisation(1,608)

(159)

(654)

(2,421)(45)(2,466)■

research and development expenses(2,702)

(325)

(344)

(3,371)(89)(3,460)share of profit from investments
accounted for under the equity method

179

4

159

342

674

1,016

additions to other provisions

897

616

2,009

3,522

263

3,785

Impairment and disposal of goodwill

0

0

0

0

0

0

Exceptionals depreciation / disposal

(14)

0

(9)

(23)

(1)

(24)

2,287

427

736

3,450

612

4,062

■

■

Profit before finance costs and income taxes
Interest result(368)

Other financial result(319)

Income taxes(677)

Profit for the period

2,698

Business segment information for the year ended the 31 December 2014 is as follows:
AirbusDefence and
Space

Total
segments

Others /HQ /Conso.

Consolidated
62,311(In € million)

AirbusAirbusHelicopters

Total revenues

42,2806,524

13,02561,829482

Internal revenues

(749)

(528)

(297)

(1,574)(24)(1,598)

Revenues

41,531

5,996

12,72860,255458

60,713

EBIT pre-goodwill impairment
and exceptionals

2,671

413

409

3,493

547

4,040

thereof:■depreciation and amortisation(1,419)

(157)

(540)

(2,116)(34)(2,150)■research and development expenses(2,667)

(325)

(360)

(3,352)(39)(3,391)■■share of profit from investments
accounted for under the equity method
additions to other provisions

Impairment and disposal of goodwill
Exceptionals depreciation / disposal
Profit before finance costs and income taxes

62

4

176

242

598

840

1,148

523

1,580

3,251

178

3,429

0

0

(6)

(6)

0

(6)

(25)

0

(16)

(41)

(2)

(43)

2,646

413

387

3,446

545

3,991

Interest result(320)

Other financial result(458)

Income taxes(863)

Profit for the period

2,350

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 26 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.3 Segment Information

Segment capital expenditures(In € million)

2015

2014

Airbus

2,001

1,713

Airbus Helicopters

280

303

Airbus Defence and Space

552

497

Others / HQ / Conso.

91

35

2,924

2,548

Total capital expenditures(1)(1) Excluding expenditure for leased assets.

31 December

Segment assets(In € million)

2015

2014

Airbus47,857

41,342

Airbus Helicopters

10,172

10,248

Airbus Defence and Space

19,38817,660

Others / HQ / Conso.

738

3,337

78,15572,587

Deferred and current tax assets

7,619

6,322

Securities

11,6399,172

Cash and cash equivalents

7,489

7,271

Assets classified as held for sale

1,779

750

106,681

96,102

Total segment assets
UnallocatedTotal assets

The property, plant and equipment by geographical areas is disclosed in Note 18 “Property, plant and equipment”. The revenues
by geographical areas are disclosed in Note 10 “Revenues, cost of sales and gross margin”.

2.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 27 l

Notes to the IFRS Consolidated Financial Statements
2.4 Group Performance

2.4 Group Performance
10. Revenues, Cost of Sales and Gross Margin
Revenues
Revenues are mainly comprised of sales of goods and services, as well as revenues associated with construction contracts
accounted for under the PoC method, contracted research and development and customer ﬁnancing.
2015(In € million)

2014

Revenues from construction contracts

9,860

7,916

Other revenues(1)54,59052,797

Total(2)64,45060,713

8,328

8,279

Thereof service revenues including sale of spare parts(1) Includes mainly revenues from sales of commercial aircraft recognised under IAS 18.
(2) For more details, please see Note 9 “Segment information”.

Revenues increased by 6.2% mainly at Airbus. The revenue
growth in Airbus results from a more favourable foreign exchange
impact and an overall increase in deliveries to 635 aircraft(629 in the previous year). Airbus Helicopters contributed also

positively mainly due to a higher level of services activity. Airbus
Defence and Space revenues were broadly stable and include
revenues related to the A400M programme of € 1,648 million(2014: € 1,561 million).

Revenues by geographical areas based on the location of the customer are as follows:(In € million)

2015

2014

Europe20,06020,254

Asia - Pacific

18,755

19,379North America

10,217

9,731

Middle East

8,612

6,520

Latin America

4,096

3,844

Other countries

2,710

985

64,45060,713

Total

Cost of Sales and Gross Margin
Cost of sales increased by 7.4%. The increase was primarily
due to business growth at Airbus, an increase in the A350 XWB
programme support costs, and negative foreign exchange
revaluation impacts from pre-delivery payments. This was partly
offset by a lower net charge related to A400M programme of€ 290 million (in 2014: € 551 million).
Further included in cost of sales are amortisation expenses offair value adjustments of non-current assets in the amount of€ 24 million (2014: € 43 million).
Inventories recognised as an expense during the period amountto € 45,289 million (in 2014: € 41,523 million).

The gross margin decreased by € -86 million to € 8,851 million
compared to € 8,937 million in 2014. Included is the net charge
on the A400M programme recorded in the second quarter of2015 and a negative foreign exchange impact in Airbus. The
gross margin rate decreased from 14.7% to 13.7%.
The A350 XWB entry-into-service occurred at the end of
2014, with the ﬁrst A350 being delivered to Qatar Airways on
22 December 2014. In 2015, Airbus has delivered fourteen
additional aircraft. The industrial ramp-up preparation isunderway and associated risks will continue to be closely
monitored in line with the schedule, aircraft performance andoverall cost envelope, as per customer’s commitment. Despite
the progress made, signiﬁcant challenges remain with the
ramp-up acceleration.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 28 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.4 Group Performance

An additional eleven A400M aircraft were delivered in 2015,
resulting in twenty-one cumulative deliveries up to 31 December
2015.
Industrial efﬁciency and military capability remain a challenge
during the ramp up phase. Management is working withthe customers to agree a schedule of military capability
enhancement and deliveries as well as reviewing the escalation
formulae. Industrial recovery measures have been identiﬁed
and management is focused on delivery, but risk remains.
The mission capability roadmap (including the achievementof the respective milestones) and the delivery plan remain
under negotiation with OCCAR/Nations and are expected tobe ﬁnalised in 2016.
Management reviewed the programme evolution and estimatedcontract result driven to a large extent from the implications of
the accident, as well as the impact of low inﬂation on the pricerevision formula, delays in military functionality and deliveries,

commercial negotiations, cost reduction targets and challenges
in the industrial ramp-up, together with associated mitigation
actions. As a result of this review, Airbus Defence and Space
recorded an additional net charge of € 290 million in the second
quarter of 2015. The detailed review continued in the second
half of 2015 however no further net charges were deemednecessary.
The A400M SOC 1 and 1.5 milestones remain to be achieved.
SOC 1 fell due end October 2013 and SOC 1.5 fell due end
December 2014. The associated termination rights became
exercisable by OCCAR/Nations on 1 November 2014 and1 January 2016, respectively. SOC 2 fell due end December 2015
and is still in the 12-month grace period. Management judgesthat it is highly unlikely that any of these termination rights will
be exercised.
The A400M programme remains in a critical phase and theassociated risks will continue to be closely monitored.

11. Research and Development Expenses
Research and development expenses increased by 2.0% primarily reﬂecting R&D activities on the A350 XWB programme at
Airbus. In addition, an amount of € 154 million of development costs has been capitalised, mainly related to the H160 and Single
Aisle NEO programmes.

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

2015

2014

Share of profit from investments in associates(1)

773

721

Share of profit from investments in joint ventures

243

119

1,016

840

54

55

(In € million)

Share of profit from investments accounted for under the equity method
Other income from investments(1) This includes a significant impact from the investment in Dassault Aviation. For more details, please see Note 6 “Acquisitions and disposals”.

13. Other Income and Other Expenses
Other income increased by €+144 million. This increase is mainly
due to the capital gain of € 72 million related to the disposal of
Cimpa SAS, the net gain of € 51 million from the partial saleof Dassault Aviation held for sale shares that occurred in thesecond quarter and the capital gain of € 49 million following thecompletion of the ﬁrst phase of the creation of ASL (see Note 6“Acquisitions and disposals”). It also includes income from rental
properties (€ 50 million in 2015 compared to € 67 million in 2014).
Other expenses increased by € -43 million, mainly due to costs
associated with disposals in Airbus Defence and Space.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 29 l2.

Notes to the IFRS Consolidated Financial Statements
2.4 Group Performance

14. Total Finance Costs
Interest income derived from the Group’s asset management and lending activities is recognised as interest accrues, using theeffective interest rate method.
(In € million)

2015

2014

Interest on European government refundable advances

(280)

(205)

Others

(88)

(115)

(1)

(368)

(320)

Change in fair value measurement of financial instruments

(119)

(240)

Unwinding of discounted provisions

(101)

(117)

Foreign exchange translation of monetary items

(74)

(121)

Others(25)

20

Total interest result

Total other financial result

(319)

(458)

Total

(687)

(778)

(1) In 2015, the total interest income amounts to € 183 million (in 2014: € 142 million) for financial assets which are not measured at fair value through profit or loss. For financial liabilities
which are not measured at fair value through profit or loss € -551 million (in 2014: € -462 million) are recognised as total interest expenses. Both amounts are calculated by using
the effective interest method.

15. Income Tax
The expense for income taxes is comprised of the following:(In € million)

2015

2014

Current tax expense

(661)

(546)

Deferred tax expense

(16)

(317)

(677)

(863)

Total

In 2015, € 42 million of current tax income and € -56 million of deferred tax expense relate to prior years.
Main income tax rates and main changes impacting the Group:
Countries

2015

2016

> 201625.00%

Netherlands

25.00%

25.00%

France38.00%

34.43%

34.43%

Germany

30.00%

30.00%

30.00%

Spain

28.00%

25.00%

25.00%

UK(1)20.25%

20.00%

18.00%(1) 20% from 1 April 2015 until 31 March 2017, 19% from 1 April 2017 until 31 March 2020 and 18% from 1 April 2020.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 30 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.4 Group Performance

The following table shows a reconciliation from the theoretical income tax (expense) using the Dutch corporate tax rate to thereported income tax (expense):(In € million)

2015

Profit before income taxes

3,375

3,213

* Corporate income tax rate

25.0%

25.0%

Expected (expense) for income taxes

(844)

(803)

Effects from tax rate differentials

(329)

(270)

Income from investments / associates

412

265

Tax credit

66

77

Change of tax rate

(90)

(47)

Change in valuation allowances

96

(72)

Non-deductible expenses and tax-free income

12

(25)

Other

0

12

(677)

(863)

Reported tax (expense)

2014

Changes in valuation allowances represent reassessments of the recoverability of deferred tax assets based on future taxable
proﬁts of certain companies mainly for Airbus in Germany and Airbus Defence and Space in the United Kingdom (“UK”). The
amount of change in valuation allowances of € 96 million in 2015 (2014: € -72 million) excludes a positive impact of € 1 million (2014:€ 4 million) from a change in tax rates which is presented in the line “change of tax rate”.
As the Group controls the timing of the reversal of temporary
differences associated with its subsidiaries (usually referred to as“outside basis differences”) arising from yet undistributed proﬁts
and changes in foreign exchange rates, it does not recognisea deferred tax liability. For temporary differences arising frominvestments in associates the Group recognises deferred tax
liabilities. The rate used reﬂects the assumptions that thesedifferences will be recovered from dividend distribution unlessa management resolution for the divestment of the investment
exists at the closing date. For joint ventures, the Group assesses
its ability to control the distribution of dividends based on
existing shareholder agreements and recognises deferred tax
liabilities accordingly.

As of 31 December 2015, the aggregate amount of temporary
differences associated with investments in subsidiaries,
branches and associates and interests in joint arrangements,
for which deferred tax liabilities have not been recognised,amounts to € 117 million.
Companies in deﬁcit situations in two or more subsequent years
recorded a total deferred tax asset balance of € 52 million (in2014: € 115 million). Assessments show that these deferred
tax assets will be recovered in future through either (i) own
projected proﬁts, or (ii) proﬁts of other companies integrated in
the same ﬁscal group (“régime d’intégration fiscale” in France,“steuerliche Organschaft” in Germany) or (iii) via the “losssurrender-agreement” in UK.

Deferred taxes on net operating losses (“NOL”), trade tax loss carry forwards and tax credit carry forwards:

FranceGermany

Spain

UK

Other
countries

31 December
2015

31 December
2014

701

1,945

384

2,984

489

6,503

6,410

Trade tax loss carry forwards

0

1,955

0

0

0

1,955

2,240

Tax credit carry forwards

0

0

317

0

6

323

398

Tax effect

241

560

413

537

98

1,849

2,080

Valuation allowances

(3)

(244)

(100)

(65)

(11)

(423)

(440)

238

316

313

472

87

1,426

1,640

(In € million)

NOL

Deferred tax assets on NOL’s
and tax credit carry forwards

NOLs, capital losses and trade tax loss carry forwards are indeﬁnitely usable in France, Germany, UK and in Spain. In Spain,
tax credit carry forwards still expire after 18 years. The ﬁrst tranche of tax credit carry forwards (€ 14 million) will expire in 2023.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 31 l2.

Notes to the IFRS Consolidated Financial Statements
2.4 Group Performance

Roll forward of deferred taxes:(In € million)

2015

2014

Net deferred tax asset beginning of the year

4,587

2,279

Deferred tax (expense) in income statement

(16)

(317)

Deferred tax recognised directly in AOCI (IAS 39)

1,112

1,961

Deferred tax on remeasurement of the net defined benefit liability

(235)

577

OthersNet deferred tax asset at year-end

111

87

5,559

4,587

Details of deferred taxes recognised cumulatively in equity are as follows:
31 December(In € million)

2015

2014

(86)

(51)

Available-for-sale investments
Cash flow hedges

2,612

1,465

Deferred tax on remeasurement of the net defined benefit liability

1,313

1,548

Total

3,839

2,962

Deferred income taxes as of 31 December 2015 are related to the following assets and liabilities:
Other
movements

1 January 2015

(In € million)

Deferredtax
assetsDeferredtax
liabilities

OCI /IAS 19Movement throughincome statement

Others(1)R&D
tax
credits

31 December 2015

Deferred Deferred Deferred
tax benefit
tax
tax(expense)
assets liabilities

Intangible assets

50

(475)

0

(1)

0

(59)

53

(538)

Property, plant and equipment490(1,355)

0

(10)

0

354

832

(1,353)

Investments and other long-term
financial assets

332

(167)

(35)

80

0

(181)

186

(157)

Inventories

1,219

(457)

0

(8)

0

(173)

1,333

(752)

397

(2,267)

(115)

(1)

0

208

837

(2,615)

2

0

0

0

0

0

3

(1)

1,897

0

(235)

13

0

(156)

1,519

0

Other provisions

2,422

(498)

0

(2)

0

(550)

1,999

(627)

Liabilities

2,335

(871)

1,389

1

0

713

4,007

(440)

Receivables and other assets
Prepaid expenses
Provision for retirement plans

Deferred income

53

(22)

0

0

0

(7)

98

(74)

Net operating loss and tax credit
carry forwards

2,080

0

0

82

(51)

(262)

1,849

0

Deferred tax assets (liabilities)
before offsetting

11,277(6,112)

1,004

154

(51)

(113)

12,716(6,557)

Valuation allowances on deferred
tax assets

(578)

0

(127)

8

0

97

(600)

0

Set-off(4,982)

4,982

0

0

0

0

(5,357)

5,357

Net deferred tax
assets (liabilities)

5,717(1,130)

877

162

(51)

(16)

6,759

(1,200)(1) “Others” mainly comprises changes in the consolidation scope and foreign exchange rate effects.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 32 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.4 Group Performance

Deferred income taxes as of 31 December 2014 are related to the following assets and liabilities:

1 January 2014

(In € million)

Deferred Deferredtax
tax
assets liabilities

Other movements

Movement throughincome statement

31 December 2014

OCI /IAS 19R&D
Deferredtax tax benefit
credits (expense)

Deferredtax
assetsOthers(1)Deferredtax
liabilities

Intangible assets

146

(456)

0

3

0

(118)

50

(475)

Property, plant and equipment

418(1,284)

0

24

0

(23)

490

(1,355)Investments and other long-term financial
assets

337

(155)

(30)

0

0

13

332

(167)

Inventories

1,116

(236)

0

(10)

0

(108)

1,219

(457)

Receivables and other assets

246(2,866)

599

(17)

0

168

397

(2,267)

3

(6)

0

0

0

5

2

0

Prepaid expenses
Provision for retirement plans

1,137

0

577

20

0

163

1,897

0

Other provisions

2,425

(347)

0

1

0

(155)

2,422

(498)

Liabilities

795

(971)

1,392

(10)

0

258

2,335

(871)

Deferred income

82

(46)

0

0

0

(5)

53

(22)

Net operating loss and tax credit carryforwards

2,441

0

0

74

12

(447)

2,080

0

Deferred tax assets (liabilities)
before offsetting

9,146(6,367)

2,538

85

12

(249)

11,277(6,112)

Valuation allowances on deferred tax
assets

(500)

0

0

(10)

0

(68)

(578)

0

Set-off(4,913)

4,913

0

0

0

0

(4,982)

4,982

Net deferred tax assets (liabilities)

3,733(1,454)

2,538

75

12

(317)

5,717

(1,130)(1) “Others” mainly comprises changes in the consolidation scope and foreign exchange rate effects.

16. Earnings per Share
Basic earnings per share – The weighted average number of ordinary shares used for the basic earnings per share computation
does not include those shares for which a ﬁnancial liability was recognised, and equity reduced, under the share buyback
programme (see Note 32.1 “Equity attributable to equity owners of the parent”).

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

Diluted earnings per share – The Group’s categories ofdilutive potential ordinary shares are S tock Option P lans(“SOP”), share-settled Performance Units for Executive
Committee Members relating to Long-Term Incentive Plans(“LTIP”) and the convertible bond issued on 1 July 2015 (seeNote 34.3 “Financing liabilities”). In 2015, the average price ofAirbus Group shares exceeded the exercise price of the SOP
as well as the share-settled Performance Units and therefore

2015

2014

€ 2,696 million€ 2,343 million

785,621,099

782,962,385€ 3.43€ 2.99359,335 shares (in 2014: 1,193,364 shares) were consideredin the calculation of diluted earnings per share. The dilutive
effect of the convertible bonds was also considered in thecalculation of diluted earnings per share in 2015, by adding
back € 3 million of interest expense to the proﬁt for the period
attributable to equity owners of the parent (2014: no adjustment)
and by including 2,511,495 of dilutive potential ordinary shares.

Profit for the period attributable to equity owners of the parent (Net income)Weighted average number of ordinary shares (diluted)(1)Diluted earnings per share(1) Dilution assumes conversion of all potential ordinary shares.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 33 l

2015

2014

€ 2,699 million€ 2,343 million

788,491,929

784,155,749€ 3.42€ 2.992.

Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

2.5 Operational Assets and Liabilities
17. Intangible Assets
Intangible assets comprise (i) goodwill (see Note 5 “Scope of consolidation”), (ii) capitalised development costs (see Note 2“Signiﬁcant accounting policies”) and (iii) other intangible assets, e.g. internally developed software and acquired intangible assets.
Intangible assets with ﬁnite useful lives are generally amortised on a straight line basis over their respective estimated useful lives(3 to 10 years) to their estimated residual values.
Intangible assets as of 31 December 2015 and 2014 comprise the following:
31 December 2015

1 January 2015

(In € million)GrossamountAmortisation /Impairment

Net book
value

Gross
amountAmortisation /Impairment

Net book
value

Goodwill

10,995(1,088)

9,907

11,077(1,098)

9,979

Capitalised development costs

2,686(1,027)

1,659

2,507

(819)

1,688

Other intangible assets

3,375(2,386)

989

3,265

(2,174)

1,091

17,056(4,501)

12,555

16,849(4,091)

12,758Total

Net Book Value(In € million)

Balance at
Changes in
1 January Exchange
consolidation
Amortisation /Impairment
2015 differences Additions
scope Reclassification(1) Disposals

Balance at
31 December
2015

Goodwill

9,979

60

0

0

(107)

(25)

0

9,907

Capitalised
development
costs

1,688

20

154

0

0

0

(203)

1,659

Other intangible
assetsTotal(In € million)

1,091

17

211

0

(37)

(11)

(282)

989

12,758

97

365

0

(144)

(36)

(485)

12,555

Balance at
Changes in
1 January Exchange
consolidation
Amortisation /Impairment
2014 differences Additions
scope Reclassification(1) Disposals

Balance at
31 December
2014

Goodwill

9,872

82

0

54

(23)

(6)

0

9,979

Capitalised
development
costs

1,597

15

225

(4)

(6)

(2)

(137)

1,688

Other intangible
assets

Total

1,031

34

195

94

27

(8)

(282)

1,091

12,500

131

420

144

(2)

(16)

(419)

12,758(1) Includes intangible assets reclassified to assets of disposal groups classified as held for sale (see Note 6 “Acquisitions and disposals”).

Development Costs
The Group has capitalised development costs in the amountof € 1,659 million as of 31 December 2015 (€ 1,688 million
as of 31 December 2014) as internally generated intangible
assets mainly for the Airbus A380 (€ 412 million) and A350 XWB(€ 765 million) programmes. The amortisation for the A380

programme development costs is performed on a unit ofproduction basis. Capitalisation for development costs of theA350 XWB programme started in the second quarter of 2012
when the ﬁrst aircraft entered the ﬁnal assembly line.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 34 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

Impairment Tests
The Group assesses at each end of the reporting period whether
there is an indication that a non-ﬁnancial asset or a Cash
Generating Unit (“CGU”) to which the asset belongs may be
impaired. In addition, intangible assets with an indeﬁnite usefullife, intangible assets not yet available for use and goodwill aretested for impairment in the fourth quarter of each ﬁnancial year
irrespective of whether there is any indication for impairment.
An impairment loss is recognised in the amount by which theasset’s carrying amount exceeds its recoverable amount. For
the purpose of impairment testing any goodwill is allocated to
the CGU or group of CGUs in a way that reﬂects the way goodwill
is monitored for internal management purposes.
The discounted cash ﬂow method is used to determine therecoverable amount of a CGU or the group of CGUs to which
goodwill is allocated. The discounted cash flow method
is particularly sensitive to the selected discount rates andestimates of future cash ﬂows by management. Discount rates

are based on the weighted average cost of capital (“WACC”)
for the groups of cash-generating units. The discount rates
are calculated based on a risk-free rate of interest and amarket risk premium. In addition, the discount rates reﬂect thecurrent market assessment of the risks speciﬁc to each groupof cash-generating units by taking into account speciﬁc peergroup information on beta factors, leverage and cost of debt.
Consequently, slight changes to these elements can materiallyaffect the resulting valuation and therefore the amount of apotential impairment charge.
These estimates are influenced by several assumptions
including growth assumptions of CGUs, availability andcomposition of future defence and institutional budgets, foreignexchange ﬂuctuations or implications arising from the volatilityof capital markets. Cash ﬂow projections take into account pastexperience and represent management’s best estimate about
future developments.

As of 31 December 2015 and 2014, goodwill was allocated to CGUs or group of CGUs, which is summarised in the following
schedule:

AirbusAirbusHelicopters

AirbusDefence andSpace

Goodwill as of 31 December 2015

6,759

299

2,835

14

9,907

Goodwill as of 31 December 2014

6,768

310

2,887

14

9,979

(In € million)

Others / HQ Consolidated

The goodwill mainly relates to the creation of the Group in 2000 and the Airbus Combination in 2001.

General Assumptions Applied in the Planning
Process
The basis for determining the recoverable amount is the value in
use of the CGUs. Generally, cash ﬂow projections used for theGroup’s impairment testing are based on operative planning.

until 2021 amounts to 1.58 US$/£ (previous year: 1.59 US$/£).
For the determination of the operative planning in the CGUs,
management assumed future exchange rates of 1.25 US$/€from 2016 onwards to convert in euro the portion of future
US dollar which are not hedged.

The operative planning, which covers a planning horizon of ﬁve
years, used for the impairment test, is based on the following
key assumptions which are relevant for all CGUs:

General economic data derived from external macroeconomic
and ﬁnancial studies has been used to derive the general key
assumptions.

increase of expected future labour expenses of 2% (in 2014:
2%);■
future interest rates projected per geographical market, for
the European Monetary Union, the UK and the US;■
future exchange rates of 1.25 US$/€ (in 2014: 1.35 US$/€) toconvert in euro the portion of future US dollar which are nothedged;■perpetuity growth rate of terminal values of 1% (in 2014: 1%).

In addition to these general planning assumptions, the following
additional CGU specific assumptions, which represent
management’s current best assessment as of the date of these
Consolidated Financial Statements, have been applied in theindividual CGUs.

■

The Group follows an active policy of foreign exchange risk
hedging. As of 31 December 2015, the total hedge portfolio withmaturities up to 2023 amounts to US$ 102 billion (US$ 88 billion
as of 31 December 2014) and covers a major portion of theforeign exchange exposure expected over the period of theoperative planning (2016 to 2020). The average US$/€ hedge rateof the US$/€ hedge portfolio until 2023 amounts to 1.28 US$/€(previous year: 1.33 US$/€) and for the US$/£ hedge portfolio

Airbus■The planning takes into account the decision to ramp-up
progressively A320 programme deliveries to 60 a/c per month.
Long Range deliveries increase progressively throughout
the planning period from 64 a/c in 2016 to 92 a/c in 2019
incorporating the introduction of A330neo deliveries in 2017.
Furthermore A350 XWB delivery rates increase signiﬁcantly
throughout the plan. For A380, management believes thatthe programme will remain stable in the foreseeable future.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 35 l2.

Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

In the absence of long-term ﬁnancial reference, expectedcash flows generated beyond the planning horizon are
considered through a terminal value. The terminal value
reﬂects management’s assessment of a normative operating
year based on an outlook of a full aeronautic cycle over the
next decade.
■Long-term commercial assumptions in respect of market
share, deliveries and market value are based on General
Market Forecast updated in 2015. The development of market
share per segment considers enlargement of the competitionas per current best assessment. Current market evolutions
are considered through sensitivities.
■
Due to the huge hedge portfolio, the carrying value andthe planned cash ﬂows of the CGU Airbus are materiallyinﬂuenced.
■
Cash ﬂows are discounted using a euro weighted WACC of
8.4% (in 2014: 9.4%).
■

Airbus Helicopters
The planning takes into account the ramp-up of our medium
segment driven by the H145 and the H175 which have beencertiﬁed in 2014, the continuing deliveries of NH90 and acontinuous growth of our support and services activity.
■
Long-term commercial assumptions in respect of market
share, deliveries and market value are based on Helicopter
market forecast considering the decrease of last two years
in the civil and parapublic market partially driven by decreaseof investment in oil and gas, needs of helicopter ﬂeet renewal■

and growth markers and the increase of Airbus Helicoptersmarket share in this environment. Current market evolutions
are considered through sensitivities.
■
Cash ﬂows are discounted using a euro weighted WACC of
8.2% (in 2014: 9.0%).

Airbus Defence and Space
Airbus Defence and Space strategy is based on future core
activities. The operative planning until 2020 considers asigniﬁcant change in the portfolio which will be ﬁnalised until
2017 after the sale of non-core activities.
The planning period is characterised by a strong forecasted
order intake across Military Aircraft and Space Systems.
■
The major products driving signiﬁcant growth are A400M
programme, including export contracts, Tankers, light andmedium transport aircraft and satellites, along with signiﬁcantresults from the foundation of ASL.
■
Airbus Defence and Space assumes a further increasein proﬁtability over the planning period, driven by higher
programme performance and cost synergies.
■
Airbus Defence and Space free cash ﬂow target is also
expected to grow leveraging on a solid cash generation fromcurrent contracts and businesses as well as future orderintakes (Military Aircraft, Satellites, Communication Intelligenceand Security) and improvement on A400M programme.
■
Cash ﬂows are discounted using a euro weighted WACC of
8.0% (in 2014: 8.7%).
■

18. Property, Plant and Equipment
Property, plant and equipment is valued at acquisition or manufacturing costs less accumulated depreciation and impairment
losses. Items of property, plant and equipment are generally depreciated on a straight-line basis. The following useful lives are
assumed:Buildings

10 to 50 years

Site improvements

6 to 30 years

Technical equipment and machinery

3 to 20 years

Jigs and tools(1)5 years

Other equipment, factory and office equipment

2 to 10 years(1) If more appropriate, jigs and tools are depreciated using the number of production or similar units expected to be obtained from the tools (sum-of-the-units method).

For details on assets related to lease arrangements on sales ﬁnancing, please refer to Note 25 “Sales ﬁnancing transactions”.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 36 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

Property, plant and equipment as of 31 December 2015 and 2014 comprise the following:
31 December 2015

1 January 2015

GrossamountDepreciation /Impairment

Net book
value(2)GrossamountDepreciation /Impairment

Net book
value(2)9,518(4,349)

5,169

8,874

(4,066)

4,808

Technical equipment and machinery

20,296(11,946)

8,350

18,850(10,604)

8,246

Other equipment, factory and officeequipment(1)4,324(3,290)

1,034

4,195

(3,033)

1,162

Construction in progress

2,574

0

2,574

2,105

0

2,105

36,712(19,585)

17,12734,024(17,703)

16,321(In € million)

Land, leasehold improvements and buildings
including buildings on land owned by others

Total(1) Buildings, technical equipment and other equipment accounted for in fixed assets under finance lease agreements for net amounts to € 364 million (2014: € 154 million).
Depreciation amounts to € 14 million (2014: € 10 million) and related accumulated depreciation € 94 million (2014: € 79 million).
(2) Include the net book value of aircraft under operating lease (see Note 25 “Sales financing transactions”).

Net Book Value(In € million)

Balance at
Changes in
1 January Exchange
consolidation
Depreciation /Impairment
2015 differences Additions
scope Reclassification(1) Disposals

Balance at
31 December
2015

Land, leasehold
improvements
and buildings
includingbuildings on land
owned by others

4,808

33

339

0

372

(79)

(304)

5,169

Technical
equipment andmachinery

8,246

154

508

0

869

(154)

(1,273)

8,350

Other equipment,
factory and officeequipment

1,162

38

377

0

0

(199)

(344)

1,034

Construction inprogress

Total(In € million)

2,105

24

1,811

0

(1,366)

0

0

2,574

16,321

249

3,035

0

(125)

(432)

(1,921)

17,127

Balance at
Changes in
1 January Exchange
consolidation
Depreciation /Impairment
2014 differences Additions
scope Reclassification(1) Disposals

Balance at
31 December
2014

Land, leasehold
improvements
and buildings
includingbuildings on land
owned by others

4,559

40

125

98

345

(52)

(307)

4,808

Technical
equipment andmachinery

7,182

164

405

66

1,518

(4)

(1,085)

8,246

Other equipment,
factory and officeequipment

1,308

52

183

19

36

(136)

(300)

1,162

Construction inprogress

Total

2,536

30

1,500

(7)

(1,935)

(19)

0

2,105

15,585

286

2,213

176

(36)

(211)

(1,692)

16,321(1) Includes property, plant and equipment reclassified to assets of disposal groups classified as held for sale (see Note 6 “Acquisitions and disposals”).

In 2015, the Group capitalised € 8 million of borrowing cost on the production of qualifying assets (2014: € 20 million). The Group’s
borrowing rate at the end of 2015 was 2.06% (2014: 2.12%).

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 37 l2.

Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

Property, Plant and Equipment by Geographical Areas
31 December(In € million)

2015

2014

France

7,035

6,438

Germany

4,294

4,428

UK

3,015

2,891

Spain

1,560

1,534

Other countries

1,105

817

17,00916,108Property, plant and equipment by geographical areas(1)(1) Property, plant and equipment by geographical areas excludes leased assets of € 118 million (2014: € 213 million).

Off-Balance Sheet Commitments
Commitments related to property, plant and equipment
comprise contractual commitments for future capital
expenditures and contractual commitments for purchases of“Land, leasehold improvements and buildings including buildings
on land owned by others” (€ 320 million as of 31 December 2015
compared to 2014 of € 276 million).

Future nominal operating lease payments (for the Group as alessee) for rental and lease agreements not relating to aircraft
sales ﬁnancing amount to € 844 million as of 31 December
2015 (2014: € 756 million), and relate mainly to procurement
operations (e.g. facility leases, car rentals).

Maturities as of 31 December 2015 and 31 December 2014 are as follows:
31 December

2015

2014

Not later than 1 year

158

150

Later than 1 year and not later than 5 years

393

347

Later than 5 years

293

259

Total

844

756

(In € million)

19. Other Investments and Other Long-Term Financial Assets

31 December(In € million)

2015

Other investments

1,232

617

Other long-term financial assets

1,260

1,152

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

2,492

1,769

178

167

2,670

1,936

Current portion of other long-term financial assets
Total

Other investments mainly comprise the Group’s participations,the most signiﬁcant at 31 December 2015 being the participations
in AviChina (Group share: 5.0%) amounting to € 199 million (2014:€ 140 million) and CARMAT SAS (Group share: 24.2%, 2014:
24.2%) amounting to € 43 million (2014: € 68 million).

2014

Other long-term financial assets and the current portion ofother long-term financial assets encompass other loans in theamount of € 717 million and € 876 million as of 31 December 2015
and 2014, and the Group’s sales ﬁnance activities in the formof ﬁnance lease receivables and loans from aircraft ﬁnancing(see Note 25 “Sales ﬁnancing transactions”).

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 38 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

20. Inventories

31 December 2015
(In € million)

Gross amount

Write-down

Net book value

Raw materials and manufacturing supplies

3,229

(476)

2,753

Work in progress

25,585(5,150)20,435

Finished goods and parts for resale

3,134

(779)

2,355

Advance payments to suppliers

3,559

(51)

3,508

35,507(6,456)

29,051Total

31 December 2014

Gross amount

Write-down

Net book value

Raw materials and manufacturing supplies

3,219

(502)

2,717

Work in progress

21,667(4,412)

17,255

Finished goods and parts for resale

2,964

(768)

2,196

Advance payments to suppliers

3,233

(46)

3,187

31,083(5,728)25,355(In € million)

Total

The increase in work in progress of €+3,180 million is mainly
driven by Airbus and Airbus Defence and Space programmes,
partly offset by Airbus Helicopters programmes. Finished goods
and parts for resale increased at Airbus Defence and Spaceand at Airbus Helicopters, partly compensated by a decreaseat Airbus. Advance payments to suppliers increased at Airbus.

Write-downs for inventories are recorded when it becomesprobable that total estimated contract costs will exceed total
contract revenues. In 2015, write-downs of inventories in theamount of € -410 million (2014: € -501 million) are recognisedin cost of sales, whereas reversal of write-downs amounts
to € 66 million (2014: € 160 million). At 31 December 2015
€ 9,246 million of work in progress and € 1,863 million of ﬁnishedgoods and parts for resale were carried at net realisable value.

21. Trade Receivables and Trade Liabilities
Trade receivables arise when the Group provides goods orservices directly to a customer with no intention of trading
the receivable. Trade receivables include claims arising fromrevenue recognition that are not yet settled by the debtor aswell as receivables relating to construction contracts. Trade
receivables are initially recognised at their transaction priceand are subsequently measured at amortised cost less any
allowance for impairment. Gains and losses are recognised in
the Consolidated Income Statement when the receivables are
derecognised or impaired as well as through the amortisation
process.

Assets and liabilities relative to constructions contracts —In the construction contract business, an asset or liability isclassiﬁed as current when the item is realised or settled within
the Group’s normal operating cycle for such contracts and as
non-current otherwise. As a result, assets and liabilities relating
to the construction contract business such as trade receivables
and payables and receivables from PoC method, that are settled
as part of the normal operating cycle are classiﬁed as current
even when they are not expected to be realised within 12 months
after the reporting period.

Allowance for doubtful accounts involves significant
management judgement and review of individual receivables
based on individual customer creditworthiness, current
economic trends including potential impacts from the EUsovereign debt crisis and analysis of historical bad debts.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 39 l2.

Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

Trade Receivables
31 December(In € million)

2015

2014

Receivables from sales of goods and services

8,153

7,087

Allowance for doubtful accounts

(276)

(289)

Total

7,877

6,798

1,819

2,224

Thereof trade receivable not expected to be collected within 1 year

The trade receivables increased by €+1,079 million, mainly in
Airbus Defence and Space.
In application of the PoC method, as of 31 December 2015
an amount of € 2,936 million (in 2014: € 1,941 million) for
construction contracts is included in the trade receivables netof related advance payments received.
The aggregate amount of costs incurred and recognised
profits (less recognised losses) to date amounts to€ 71,813 million (in 2014: € 68,543 million).
The gross amount due from customers for contract work,on construction contracts recognised under the PoC method,is the net amount of costs incurred plus recognised proﬁts lessthe sum of recognised losses and progress billings. In 2015, it
amounts to € 9,190 million (in 2014: € 3,828 million). Due to thenature of certain contracts and the respective recognition ofrevenues, these incurred costs also include associated workin progress and respective contract losses.
The gross amount due to customers for contract work on
construction contracts recognised under the PoC method, isthe net amount of costs incurred plus recognised proﬁts less thesum of recognised losses and progress billings for all contracts
in progress for which progress billings exceed costs incurred
plus recognised proﬁts (less recognised losses). In 2015, thegross amount due to customers amounts to € 77 million (in2014: € 2,535 million).

The respective movement in the allowance for doubtful accounts in respect of trade receivables during the year was as follows:(In € million)

2015

2014

Allowance balance at 1 January

(289)

(314)

Foreign currency translation adjustment

0(1)

Utilisations / disposals

15

34(Additions)

(2)

(8)

(276)

(289)

31 December

Based on historic default rates, the Group believes that no allowance for doubtful accounts is necessary in respect of tradereceivables not past due in the amount of € 5,373 million (in 2014: € 4,917 million).

Trade Liabilities
As of 31 December 2015, trade liabilities amounting to € 129 million (€ 280 million as of 31 December 2014) will mature after morethan one year.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 40 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

22. Provisions, Contingent Assets and Contingent Liabilities
Provisions — The determination of provisions, for example for contract losses, warranty costs, restructuring measures and legal
proceedings is based on best available estimates.
In general, as the contractual and technical parameters to be considered for provisions in the aerospace sector are rather complex,
uncertainty exists with regard to the timing and amounts of expenses to be taken into account.
The majority of the Company’s other provisions are generally expected to result in cash outﬂows during the next 1 to 12 years.
31 December(In € million)

2015

2014

Provision for pensions (Note 29)

7,615

8,250

Other provisions (Note 22)

7,465

7,862

15,080

16,112

Thereof non-current portion

9,871

10,400

Thereof current portion

5,209

5,712

Total

Movements in other provisions during the year were as follows:

Balance at
1 January
2015

Exchangedifferences

Increasefrompassageof time

Used

ReleasedContract losses

900

1

0

630

(554)

(303)

(318)

356

Outstanding costs

2,369

32

0

1,553

(14)

(1,330)

(179)

2,431

687

106

42

22

0

(206)

(33)

618

Obligation from services
and maintenanceagreements

598

28

11

134

0

(171)

0

600

Warranties

438

2

2

77

(7)

(95)

(32)

385

(In € million)

Aircraft financing risks(1)Personnel-related
provisions(2)Reclassification /Change inconsolidated
Additionsgroup

Balance at
31 December
2015

1,255

2

5

550

(42)

(483)

(142)

1,145

Litigation and claims(3)

144

5

0

87

2

(63)

(45)

130

Asset retirement

130

0

2

1

28

0

0

161

Other risks and charges

1,341

16

1

731

(168)

(151)

(131)

1,639

Total

7,862

192

63

3,785

(755)

(2,802)

(880)

7,465

(1) See Note 25 “Sales financing transactions”.
(2) See Note 28 “Personnel-related provisions”.
(3) See Note 36 “Litigation and claims”.

2.

In 2015, provision for contract losses mainly includes A350 XWB programme (€ 136 million) and several Airbus Defence and Space
programmes (€ 133 million). The additions to the contract losses provision include the net charge of € 290 million for the A400M
programme before netting with work in progress. “Reclassiﬁcation/Change in consolidated Group” mainly relates to offsettingof A400M programme contract provisions to respective inventories (see Note 10 “Revenues, costs of sales and gross margin”).
The majority of the addition to provisions for outstanding costs relates to Airbus Defence and Space (€ 1,008 million) and corresponds
among others to the Boarder Security business, to the Euroﬁghter programme and to diverse tasks to complete on construction
contracts, as well as to Airbus Helicopters (€ 490 million), mainly for the NH90 and Tiger programmes.
Contingent assets and contingent liabilities — Airbus Groupis exposed to technical and commercial contingent obligations
due to the nature of its businesses. To mitigate this exposure,
Airbus Group has subscribed a Global Aviation Insurance
Programme (“GAP”). When the Company has obtained insurance

coverage from third parties for these risks, any reimbursement
is recognised separately only when it is virtually certain to
be received. Information required under IAS 37 “Provisions,contingent liabilities and contingent assets” is not disclosed if theGroup concludes that disclosure can be expected to prejudice

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 41 l

Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

seriously its position in a dispute with other parties. Negotiations
concerning an insurance reimbursement relating to an Airbus
commercial insurance case are currently ongoing.
For other contingent liabilities, please refer to Note 36 “Litigationand claims” and Note 10 “Revenues, cost of sales and grossmargin” (mainly A400M).

Other commitments include contractual guarantees
and performance bonds to certain customers as well as
commitments for future capital expenditures and amounts
which may be payable to commercial intermediaries if future
sales materialise.

23. Other Financial Assets and Other Financial Liabilities
Other Financial Assets
31 December(In € million)

Positive fair values of derivative financial instruments(1)Others

2015

2014

931

502

165

84

1,096

586

349

208

Receivables from related companies

616

582

Others437

374

Total current other financial assets

1,402

1,164

Total

2,498

1,750

Total non-current other financial assets
Positive fair values of derivative financial instruments(1)(1) See Note 35 “Information about financial instruments”.

Other Financial Liabilities
31 December(In € million)

2015

2014

European Governments refundable advances

6,716

6,020

Liabilities for derivative financial instruments(1)

6,703

3,271

619

631

14,038

9,922

OthersTotal non-current other financial liabilities
European Governments refundable advances

570

508

Liabilities for derivative financial instruments(1)

3,884

2,232

80

50

Liabilities to related companies

487

690

Total current other financial liabilities

Others

5,021

3,480

Total

19,05913,402

5,021

3,470

Thereof other financial liabilities due within 1 year
(1) See Note 35 “Information about financial instruments”.

Refundable advances from European governments are provided to the Group to ﬁnance research and development activities
for certain projects on a risk-sharing basis, i.e. they have to be repaid to the European Governments subject to the success ofthe project.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 42 lFinancial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

24. Other Assets and Other Liabilities
Other Assets
31 December(In € million)

2015

2014

Prepaid expenses

2,051

1,603

115

219

Total non-current other assets

2,166

1,822

Value added tax claims

1,450

1,371

Prepaid expenses

663

487

Others706

531

Total current other assets

2,819

2,389

Total

4,985

4,211

OthersOther Liabilities
31 December(In € million)

2015

2014

Customer advance payments

14,472

12,231

521

618

Total non-current other liabilities

14,993

12,849Customer advance payments(1)23,612

22,174

OthersTax liabilities (excluding income tax)

885

675

2,540

2,373

Total current other liabilities

27,03725,222

Total

42,03038,071

26,31324,291OthersThereof other liabilities due within 1 year

(1) Of which € 8,252 million (2014: € 7,840 million) relate to construction contracts mainly in Airbus Defence and Space (2015: € 7,007 million and 2014: € 6,499 million) and Airbus
Helicopters (2015: € 1,246 million and 2014: € 1,273 million).

25. Sales Financing Transactions
Sales ﬁ nancing — With a view to facilitating aircraft sales
for Airbus and Airbus Helicopters, the Group may enter intoeither on-balance sheet or off-balance sheet sales ﬁnancing
transactions.
On-balance sheet transactions where Airbus is lessor
are classiﬁed as operating leases, ﬁnance leases and loans,inventory and to a minor extent, equity investments:(i) O perating leases – Aircraft leased out under operatingleases are included in property, plant and equipment atcost less accumulated depreciation (see Note 18 “Property,
plant and equipment”). Rental income from operating leases
is recorded as revenues on a straight-line basis over theterm of the lease.

(ii) Finance leases and loans – When, pursuant to a financing
transaction, substantially all the risks and rewards ofownership of the financed aircraft reside with a third party,
the transaction is characterised as either a finance leaseor a loan. In such instances, revenues from the sale of theaircraft are recorded upon delivery, while financial interestis recorded over time as financial income. The outstandingbalance of principal is recorded on the statement of financial
position (on balance sheet) in long-term financial assets, netof any accumulated impairments.
(iii) Inventory – Second hand aircraft acquired as part of acommercial buyback transaction, returned to the Groupafter a payment default or at the end of a lease agreement
are classified as inventory held for resale if there is nosubsequent lease agreement in force (see Note 20“Inventories”).

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 43 l2.

Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

Off-balance sheet commitments — Financing commitments
are provided to the customer either as backstop commitments
before delivery, asset value guarantees at delivery, operating
head-lease commitments or counter guarantees:(i) Backstop commitments are guarantees by Airbus, madewhen a customer-order is placed, to provide financing to
the customer in the event that the customer fails to securesufficient funding when payment becomes due under theorder. Such commitments are not considered to be part ofgross customer financing exposure as (i) the financing is notin place, (ii) commitments may be transferred in full or part tothird parties prior to delivery, (iii) past experience suggests
it is unlikely that all such proposed financings actually will
be implemented and, (iv) the Group retains the asset until
the aircraft is delivered and does not incur an unusual riskin relation thereto. In order to mitigate customer credit risks
for the Group, such commitments typically contain financial
conditions which guaranteed parties must satisfy in order
to benefit therefrom.
(ii) Asset value guarantees are guarantees whereby the Groupguarantees a portion of the value of an aircraft at a specificdate after its delivery. Airbus considers the financial risks
associated with such guarantees to be acceptable, because(i) the guarantee only covers a tranche of the estimatedfuture value of the aircraft, and its level is considered
prudent in comparison to the estimated future value of eachaircraft, and (ii) the exercise dates of outstanding asset value
guarantees are distributed through 2025. It is management
policy that the present value of the guarantee given does
not exceed 10% of the sales price of the aircraft.
As of 31 December 2015, the nominal value of asset
value guarantees provided to beneficiaries amounts to€ 781 million (2014: € 861 million), excluding € 97 million(2014: € 146 million) where the risk is considered to be
remote. The present value of the risk inherent in asset
value guarantees where a settlement is being considered
probable is fully provided for and included in the total ofprovisions recognised for asset value risks of € 550 million(2014: € 618 million) (see Note 22 “Provisions, contingent
assets and contingent liabilities”).
(iii) Operating head-lease commitments – The Group hasentered into head-lease sub-lease transactions in which
it acts as a lessee under an operating head-lease andlessor under the sub-lease. The Group’s gross customer
financing exposure to operating head-lease commitments,
determined as the present value of the future head-lease
payments, was € 92 million in 2015 (2014: € 135 million).
Exposure — In terms of risk management, the Groupmanages its gross exposure arising from its sales ﬁnancing
activities (“gross customer ﬁnancing exposure”) separately for(i) customer’s credit risk and (ii) asset value risk.

Gross customer financing exposure is the sum of(i) the book value of operating leases before impairment,(ii) the outstanding principal amount of ﬁnance leases or loans
due before impairment, (iii) the guaranteed amounts underﬁnancial guarantees and the net present value of head-leasecommitments, (iv) the book value of second hand aircraft for
resale before impairment, and (v) the outstanding value of any
other investment in sales ﬁnancing SEs before impairment.
This gross customer ﬁnancing exposure may differ from thevalue of related assets on the Group’s statement of ﬁnancial
position and related off balance sheet contingent commitments,
mainly because (i) assets are recorded in compliance with IFRS,
but may relate to transactions that are ﬁnanced on a limited
recourse basis and (ii) the carrying amount of the assets on theConsolidated Statement of Financial Position may have beenadjusted for impairment losses.
Gross customer ﬁnancing exposure amounts to US$1.5 billion(€ 1.4 billion) (2014: US$1.3 billion (€ 1.1 billion)).
Net exposure is the difference between gross customer
ﬁnancing exposure and the collateral value. Collateral value
is assessed using a dynamic model based on the net present
value of expected future receivables, expected proceeds fromresale and potential cost of default. This valuation model yields
results that are typically lower than residual value estimates by
independent sources in order to allow for what management
believes is its conservative assessment of market conditions andfor repossession and transformation costs. The net exposure
is fully provided for by way of impairment losses and otherprovisions.
Impairment losses and provisions — For the purposes ofmeasuring an impairment loss, each transaction is tested
individually. Impairment losses relating to aircraft under operatinglease and second hand aircraft for resale (included in inventory)
are recognised for any excess of the aircraft’s carrying amountover the higher of the aircraft’s value in use and its fair valueless cost to sell. Impairment allowances are recognised forﬁnance leases and loans when their carrying amounts exceed
the present value of estimated future cash ﬂows (including cash
ﬂows expected to be derived from a sale of the aircraft). Under
its provisioning policy for sales ﬁnancing risk, the Group records
provisions as liabilities for estimated risk relating to off-balance
sheet commitments.
Security — Sales financing transactions, including thosethat are structured through SE, are generally collateralised by
the underlying aircraft. Additionally the Group beneﬁts fromprotective covenants and from security packages tailoredaccording to the perceived risk and the legal environment.
The Group endeavours to limit its sales ﬁnancing exposure bysharing its risk with third parties usually involving the creationof an SE. Apart from investor interest protection, interposing
an SE offers advantages such as flexibility, bankruptcy

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 44 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

remoteness, liability containment and facilitating sell-downs of
the aircraft ﬁnanced. An aircraft ﬁnancing SE is typically funded
on a non-recourse basis by a senior lender and one or more
providers of subordinated ﬁnancing. When the Group acts asa lender to such SEs, it may take the role of the senior lenderor the provider of subordinated loan. The Group consolidates
an aircraft ﬁnancing SE if it is exposed to the SE’s variable

returns and has the ability to direct the relevant remarketing
activities. Otherwise, it recognises only its loan to the SE underother long-term ﬁnancial assets. At 31 December 2015 thecarrying amount of its loans from aircraft ﬁnancing amounts to€ 553 million (2014: € 426 million). This amount also represents
the Group’s maximum exposure to loss from its interest in
unconsolidated aircraft ﬁnancing SEs.

On-Balance Sheet Operating and Finance Leases
The minimum future operating lease payments (undiscounted) due from customers to be included in revenues, and the future
minimum lease payments (undiscounted) from investments in ﬁnance leases to be received in settlement of the outstanding
receivable at 31 December 2015 are as follows:
Aircraft underoperating lease

Finance leasereceivable(1)Not later than 1 year

47

32

Later than 1 year and not later than 5 years

87

127

Later than 5 years

5

54

139

213

(In € million)

31 December 2015(1) Includes € 45 million of unearned finance income.

Off-Balance Sheet Commitments
Operating head-lease commitments comprise operating lease payments due by Airbus as lessee under head-lease transactions.
As of 31 December 2015 and as of 31 December 2014, the scheduled payments owed under sales ﬁnancing head-leases are
as follows:
31 December

2015(In € million)

2014

Not later than 1 year

62

69

Later than 1 year and not later than 5 years

98

142

Later than 5 years

02

Total aircraft lease commitments(1)

160

213

Of which commitments where the transaction has been sold to third parties

(149)

(191)

11

22

Total aircraft lease commitments where the Group bears the risk (not discounted)(1) Backed by sublease income from customers with an amount of € 119 million in 2015 (2014: € 159 million).

2.

Financing Liabilities
Financing liabilities from sales ﬁnancing transactions are mainly based on variable interest rates (see Note 34.3 “Financing
liabilities”) and entered into on a non-recourse basis (i.e. in a default event, the creditor would only have recourse to the aircraft
collateral).
31 December

2015

2014

Loans

94

46

Liabilities to financial institutions

0

0

Total sales financing liabilities

94

46(In € million)

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 45 l

Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Beneﬁts

Customer Financing Exposure
The on-balance sheet assets relating to sales ﬁnancing, the off-balance sheet commitments and the related ﬁnancing exposure(not including asset value guarantees) as of 31 December 2015 and 2014 are as follows:
31 December 2015
Airbus(In € million)

Operating leases(1)

31 December 2014

AirbusHelicopters

Total

AirbusAirbusHelicopters

Total
327

337

0

337

327

0

Finance leases and loans

779

61

840

546

78

624

Inventory

179

0

179

169

0

169

Other investments
On-balance sheet customer financing

28

0

28

0

0

0

1,323

61

1,384

1,042

78

1,120
135

Off-balance sheet customer financing

84

8

92

126

9

Non-recourse transactions on balance sheet

(17)

0

(17)

(10)

(6)

(16)

Off-balance sheet adjustments

(24)

0

(24)

(55)

0

(55)

Gross customer financing exposure

1,366

69

1,435

1,103

81

1,184

Collateral values

(922)

(20)

(942)

(743)

(37)

(780)

Net exposure

444

49

493

360

44

404

Operating leases

(220)

0

(220)

(114)

0

(114)

Finance leases and loans

(113)

0

(113)

(179)

0

(179)

On-balance sheet commitments - provisions(2)

0

(49)

(49)

(3)

(44)

(47)

On-balance sheet commitments - inventories

(93)

0

(93)

(42)

0

(42)

Off-balance sheet commitments - provisions(2)

(18)

0

(18)

(22)

0

(22)

(444)

(49)

(493)

(360)

(44)

(404)

Asset impairments and provisions(1) For 2015 and 2014, depreciation amounts to € 27 million and € 31 million respectively and related accumulated depreciation is € 203 million and € 162 million respectively.
(2) See Note 22 “Provisions, contingent assets and contingent liabilities”.

2.6 Employees Costs and Beneﬁts
26. Number of Employees(In € million)

AirbusAirbusHelicopters

Airbus Defence
and SpaceTotal
segments

Others /HQConsolidated

31 December 2015

72,81622,52038,206

133,542

3,032

136,574

31 December 2014

73,95822,93938,637

135,534

3,088

138,622

27. Personnel Expenses(In € million)

2015

2014

Wages, salaries and social contributions

13,022

12,291

Net periodic pension cost (see Note 29 “Post-employment benefits”)

Total

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 46 l

598

549

13,62012,840Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Beneﬁts

28. Personnel-Related Provisions
Several German Group companies provide life time working account models, being employee beneﬁt plans with a promised returnon contributions or notional contributions that qualify as other long-term employee benefits under IAS 19. The employees’
periodical contributions into their life time working accounts result in corresponding personnel expense in that period, recognisedin other personnel charges.

(In € million)

Balance at
1 January
2015

Exchangedifferences

Increase
Reclassification /from
Change inpassageconsolidatedof time Additions
group

Used Released

Balance at
31 December
2015

Restructuring measures /pre-retirement part-time work

425

1

4

67

(20)

(148)

(64)

265

Other personnel charges

830

1

1

483

(22)

(335)

(78)

880

1,255

2

5

550

(42)

(483)

(142)

1,145

Total

29. Post-Employment Beneﬁts

31 December(In € million)

2015

2014

Provision for retirement plans (see Note 29.1)

6,867

7,567

Provision for deferred compensation (see Note 29.2)

Total

748

683

7,615

8,250

29.1 Provisions for Retirement Plans
When Group employees retire, they receive indemnities as
stipulated in retirement agreements, in accordance withregulations and practices of the countries in which the Group
operates.
France — The French pension system is operated on a “payas you go” basis. Besides the basic pension from the Frenchsocial security system, each employee is entitled to receive acomplementary pension from deﬁned contribution schemes
ARRCO (Association pour le régime de retraite complémentairedes salaries) and AGIRC (Association générale des institutions
de retraite des cadres). Moreover, French law stipulates that
employees are paid retirement indemnities in the form of lumpsums on the basis of the length of service, which are considered
as deﬁned obligations.
Germany — The Group has a pension plan (P3) for executive
and non-executive employees in place. Under this plan, theemployer provides contributions for the services rendered by
the employees, which are dependent on their salaries in therespective service period. These contributions are converted
into components which become part of the accrued pension
liability at the end of the year. Total beneﬁts are calculated asa career average over the entire period of service. Certain
employees that are not covered by this plan receive retirement

indemnities based on salary earned in the last year or on
an average of the last three years of employment. For some
executive employees, beneﬁts are dependent on the ﬁnal salaryof the respective individual at the date of retirement and the time
period served as an executive.
Parts of the pension obligation in Germany are funded byassets invested in speciﬁc funding vehicles. Besides a relief
fund (“Unterstützungskasse”), the Group has implemented
a Contractual Trust Arrangement. The Contractual Trust
Arrangement structure is that of a bilateral trust arrangement.
Assets that are transferred to the relief fund and the Contractual
Trust Arrangement qualify as plan assets under IAS 19.
United Kingdom — The Airbus Group UK Pension Scheme (“theScheme”) was implemented by Airbus Defence and Space Ltd.,
Stevenage (UK) as the principal employer. This plan comprises
all eligible employees of Airbus Defence and Space Ltd. aswell as all personnel, who were recruited by one of the Group
companies located in the UK and participating in the scheme.
The majority of the Scheme’s liabilities relate to Airbus Defence
and Space Ltd. The major part of the obligation is fundedby scheme assets due to contributions of the participatingcompanies. The Scheme is a registered pension scheme under
the Finance Act 2004. The trustee’s only formal funding objective

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 47 l2.

Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Beneﬁts

is the statutory funding objective under the Pensions Act part
6 2004, which is to have sufﬁcient and appropriate assets tocover the Scheme’s obligations. Since 1 November 2013, thisplan is generally closed for new joiners, who participate in a
separate deﬁned contribution plan.
Moreover, the Group participates in the UK in several funded
trustee-administered pension plans for both executive andnon-executive employees with BAE Systems being the principal
employer. These plans qualify as multi-employer deﬁned beneﬁtplans under IAS 19 “Employee beneﬁts”. The Group’s mostsigniﬁcant investments in terms of employees participating inthese BAE Systems UK pension plans is Airbus Operations Ltd.
Participating Airbus Operations Ltd. employees have continued
to remain members in the BAE Systems UK pension plans dueto the UK pension agreement between the Group and BAE
Systems and a change in UK pensions legislation enacted in
April 2006.
Based on the funding situation of the respective pension
schemes, the pension plan trustees determine the contribution
rates to be paid by the participating employers to adequately
fund the schemes. The different UK pension plans in which
the Group investments participate are currently underfunded.
BAE Systems has agreed with the trustees various measuresdesigned to make good the underfunding. These include(i) regular contribution payments for active employees well
above such which would prevail for funded plans and (ii) extra
employers’ contributions.
Based on detailed information about the different multi-employer
pension schemes provided by BAE Systems, the Group is able toappropriately and reliably estimate the share of its participationin the schemes, i.e. its share in plan assets, deﬁned beneﬁt
obligations (“DBO”) and pension costs. The information enables
the Group to derive keys per plan to allocate for accounting
purposes an appropriate proportion in plan assets, deﬁned
beneﬁt obligations and pension costs to its UK investments
as of the reporting date, taking into account the impact ofcontributions as well as future extra contributions agreed by
BAE Systems with the trustees. Therefore, the Group accounts
for its participation in BAE Systems’ UK deﬁned beneﬁt schemes
under the deﬁned beneﬁt accounting approach in accordancewith IAS 19.
In 2015, the share of Airbus in BAE Systems’ main schemeamounts to 20.96% (in 2014: 19.65%). The impact of this change
is mainly reﬂected in the remeasurements of the period.
BAE Systems, Airbus and the trustees agreed to work towards
a sectionalisation of the Main Scheme in 2016, which remains
subject to Trustee approval. In a ﬁrst step, in December 2015,

BAE Systems, Airbus Operations Ltd. and the scheme trustees
agreed on an allocation of the deﬁcit of the BAE Systems Pension
Scheme (“Main Scheme”) to BAE Systems and Airbus based inprinciple on each member’s last employer. This methodology is
considered to represent a better estimate of the deﬁcit allocation
than the relative payroll contributions of active members andhas been reﬂected in the allocation of the IAS 19 pension deﬁcit
in the Main Scheme at 31 December 2015. The impact of thischange on the amounts allocated at 31 December 2015 is adecrease of € 106 million in the Group’s share of the reported
IAS 19 deﬁcit.
In the event that an employer who participates in the BAE pension
schemes fails or cannot be compelled to fulﬁl its obligations as
a participating employer, the remaining participating employers
are obliged to collectively take on its obligations. The Groupconsiders the likelihood of this event as remote.

Risks
The deﬁned beneﬁt obligation exposes the Group to actuarial
risks, including the following ones:
Market price risk — The return on plan assets is assumed
to be the discount rate derived from AA-rated corporate
bonds. If the actual return rate of plan assets is lower than theapplied discount rate, the net deﬁned beneﬁt liability increases
accordingly. Moreover, the market values of the plan assets are
subject to volatility, which also impacts the net liability.
Interest rate risk — The level of the deﬁned beneﬁt obligation
is signiﬁcantly impacted by the applied discount rate. The
low interest rates, particular in the euro -denominated market
environment, lead to a relatively high net pension liability. If thedecline in returns of corporate bonds will continue, the deﬁned
beneﬁt obligation will further increase in future periods, which
can only be offset partially by the positive development ofmarket values of those corporate bonds included in plan assets.
Generally, the pension obligation is sensitive to movements in
the interest rate leading to volatile results in the valuation.
Inﬂ ation risk — The pension liabilities can be sensitive to
movements in the inﬂation rate, whereby a higher inﬂation rate
could lead to an increasing liability. Since some pension plans
are directly related to salaries, increases in compensations could
result in increasing pension obligations. A ﬁxed interest rate has
been agreed for the deferred compensation plan P3, which isﬁnanced by the employees.
Longevity risk — The pension liabilities are sensitive to the life
expectancy of its members. Rising life expectancies lead to anincrease in the valuation of the pension liability.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 48 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Beneﬁts

The weighted-average assumptions used in calculating the actuarial values of the most signiﬁcant retirement plans as of
31 December are as follows:
Pension plans inGermany

FranceUK

Multi-employer (UK)

2015

2014

2015

2014

2015

2014

2015

2014

Discount rate

2.4

1.9

2.5

2.1

3.9

3.8

3.9

3.6

Rate of compensation increase

2.75

3.25

2.5

2.5

3.0

3.0

3.2

3.2

Rate of pension increase

1.7

1.7

-/ 1.7-/ 2.02.9

2.8

2.3-3.2

2.3-3.2

Inflation rate

1.7

1.7

1.7

1.7

3.0

2.9

3.2

3.2

Assumptions in %For Germany and France, the Group derives the discountrate used to determine the deﬁned beneﬁt obligation fromyields on high quality corporate bonds with an AA rating. The
determination of the discount rate is based on the iBoxx€
Corporates AA bond data and uses the granularity of single
bond data in order to receive more market information from thegiven bond index. The discount rate for the estimated durationof the respective pension plan is then extrapolated along theyield curve. In the UK it is determined with reference to the fullyield curve of AA-rated sterling-denominated corporate bondsof varying maturities. The salary increase rates are based onlong-term expectations of the respective employers, derived
from the assumed inﬂation rate and adjusted by promotionalor productivity scales.

Rates for pension payment increases are deviated from therespective inﬂation rate for the plan.
Inﬂation rate for German plans corresponds to the expected
increase in cost of living. In the UK, the inﬂation assumptions
are derived by reference to the difference between then yields
on index-linked and ﬁxed-interest long-term government bonds.
For the calculation of the German pension obligation, the“2005 G” mortality tables (generation tables) as developed byProfessor Dr. Klaus Heubeck are applied. For the UK schemes,
the Self-Administered Pensions S1 mortality tables based on
year of birth (as published by the Institute of Actuaries) is usedin conjunction with the results of an investigation into the actual
mortality experience of scheme members. In France, INSEE(Institute for French Statistics) tables are applied.

2.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 49 l

Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Beneﬁts

The development of the deﬁned beneﬁt obligation is set out below:
CHANGE IN NET DEFINED BENEFIT LIABILITY (ASSET)
Defined benefit obligation(In € million)

Balance as of
1 January 2014

Plan assets

Pension Share of multi- Total defined
Pension Share of multiplans of employer plan
benefitplans ofemployer
the Groupin UK
obligation the Groupplan in UK

Total
plan
assetsTotal
provisions

8,822

3,460

12,282(3,768)(2,705)(6,473)Service cost

288

63

351

0

0

0

5,809
351

Interest cost and income

309

160

469

(144)

(127)

(271)

198

Settlements

(143)

0

(143)

116

0

116

(27)

from changes indemographic assumptions

161

65

226

0

0

0

226

from changes in financial
assumptions

1,370

584

1,954

0

0

0

1,954

from changes in experience
adjustments

165

(134)

31

0

0

0

31

0

(140)

(162)

(302)

(302)

Remeasurements: Actuarial(gains) and losses arising
■

■

■

■

from plan assets

Change in consolidation,transfers and others

(77)

4

(73)

0

0

0

(73)

Benefits paid

(323)

(129)

(452)

130

129

259

(193)

0

(380)

(94)

(474)

(474)

Contributions by employer
and other plan participantsForeign currency translation
adjustment
Balance as of
31 December 2014 /1 January 2015

53

264

317

(51)

(199)

(250)

67

10,625

4,337

14,962(4,237)(3,158)(7,395)

7,567

Service cost

358

81

439

0

0

0

439

Interest cost and income

219

175

394

(105)

(130)

(235)

159

0

0

0

0

0

0

0

from changes indemographic assumptions

(2)

0

(2)

0

0

0

(2)

from changes in financial
assumptions(642)(1,218)(1,860)000(1,860)from changes in experience
adjustments

213

(44)

169

0

0

0

169

0

0

0

67

898

965

965

Settlements
Remeasurements: Actuarial(gains) and losses arising
■

■

■

■

from plan assets

Change in consolidation,transfers and others

(95)

5

(90)

0

0

0

(90)

Benefits paid

(338)

(168)

(506)

139

168

307

(199)

Contributions by employer
and other plan participants

0

0

0

(245)

(117)

(362)

(362)

Foreign currency translation
adjustment

54

279

333

(50)

(202)

(252)

81

10,392

3,447

13,839(4,431)(2,541)(6,972)

6,867

Balance as of
31 December 2015

On 1 April 2014, Dutch Space B.V., Leiden (Netherlands)
settled its own pension scheme and transferred its obligation
and related plan assets to the pension scheme of the industry
sector “Electrotechnical and Metal” as managed by its pension
fund PME. Considering an additional payment of € 2 million, thesettlement gain amounted to € 25 million. The company pays
a yearly premium to the PME without any further obligation
for additional contributions. The pension scheme of the PME
qualiﬁes as a deﬁned contribution plan.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 50 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Beneﬁts

In 2015, contributions in the amount of € 241 million (2014:€ 372 million) are made into the pension plans of the Group,
mainly relating to the Contractual Trust Arrangement with€ 130 million (2014: € 265 million), the Airbus Group UK schemewith € 58 million (2014: € 50 million) and the relief fund in Germany
with € 50 million (2014: € 50 million).

Contributions of approximately € 400 million are expected tobe made in 2016.
The weighted average duration of the deﬁned beneﬁt obligation
for retirement plans and deferred compensation is 14 years at
31 December 2015 (31 December 2014: 15 years).

The split of the deﬁned beneﬁt obligation for retirement plans and deferred compensation between active, deferred and pensioner
members for the most signiﬁcant plans is as follows (as of 31 December 2015 unless otherwise noted):
ActiveDeferredPensioner

Germany

46%

6%

48%

France

99%

0%

1%

UK(1)

69%

12%

19%

Share of multi-employer scheme in UK (Main Scheme)(2)

32%

19%

49%

(1) As of 5 April 2013.
(2) As of 31 March 2014.

The following table shows how the present value of the deﬁned beneﬁt obligations of retirement plans and deferred compensation
would have been inﬂuenced by changes in the actuarial assumptions as set out for 31 December 2015:
Change in actuarial assumptions

Impact on defined benefit obligations
Change as of 31 December

Present value of the obligation
Discount rate
Rate of compensation increase
Rate of pension increase

2015

2014

14,68015,706

Increase by 0.5%-point(1,007)(1,333)

Decrease by 0.5%-point

1,062

1,416

Increase by 0.25%-point

188

356

Decrease by 0.25%-point

(305)

(457)

Increase by 0.25%-point

256

345

Decrease by 0.25%-point

(369)

(452)

Life expectancy

Sensitivities are calculated based on the same method(present value of the deﬁned beneﬁt obligation calculated withthe projected unit method) as applied when calculating thepost-employment beneﬁt obligations. The sensitivity analyses
are based on a change of one assumption while holding all

Increase by 1 year

283

421

Reduction by 1 year

(411)

(537)

other assumptions constant. This is unlikely to occur in practiceand changes of more than one assumption may be correlated
leading to different impacts on DBO than disclosed above. If
the assumptions change at a different level, the effect on the
DBO is not necessarily in a linear relation.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 51 l

2.

Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Beneﬁts

The fair value of the plan assets for retirement plans and deferred compensation can be allocated to the following classes:
31 December 2015
(In € million)

QuotedpricesUnquoted
prices31 December 2014

Total

QuotedpricesUnquoted
prices

Total
1,086

Equity securities
990

0

990

1,086

0

Rest of the world

Europe

0

0

0

102

0

102

Emerging markets

221

0

221

248

0

248

1,454

0

1,454

1,452

0

1,452

Corporates

1,549

0

1,549

2,289

0

2,289

Governments

1,715

0

1,715

1,317

0

1,317

Pooled investment vehicles

273

0

273

310

15

325

Commodities

119

0

119

176

0

176
121

GlobalBonds

Hedge funds

251

0

251

121

0

Derivatives

0

(58)

(58)

0

(47)

(47)

Property

331

4

335

346

5

351

Cash and money market funds

48

0

48

197

0

197

Others

252

(64)

188

2

(143)

(141)

7,203

(118)

7,085

7,646

(170)

7,476

The majority of funded plans apply broadly an asset-liability
matching (ALM) framework. The strategic asset allocation(SAA) of the plans takes into account the characteristics of
the underlying obligations. Investments are widely diversiﬁed,
such that the failure of any single investment would not have amaterial impact on the overall level of assets. A large portion ofassets in 2015 consists of ﬁxed income instruments, equities,
and although the Group also invests in property, commodities
and hedge funds. The Group is reassessing the characteristicsof the pension obligations from time to time or as required by theapplicable regulation or governance framework. This typicallytriggers a subsequent review of the SAA.

The amount recorded as provision in the Consolidated Statement of Financial Position can be allocated to the signiﬁcant countries
as follows:
RECOGNISED PROVISION FOR RETIREMENT PLANS
Share of multiemployer
plan in the UK

Pension plans of the Group(In € million)

Germany

FranceUK

Others

Total

Defined benefit obligation

8,144

1,561

909

11

4,337

14,962

Plan assets

3,392

17

828

0

3,158

7,395

Recognised in the statements of financial
position as of 31 December 2014

4,752

1,544

81

11

1,179

7,567

Defined benefit obligation

7,793

1,545

1,044

10

3,447

13,839Plan assets

3,464

17

950

0

2,541

6,972

Recognised in the statements of financial
position as of 31 December 2015

4,329

1,528

94

10

906

6,867

Employer’s contribution to state and private pension plans, mainly in Germany and France, are to be considered as deﬁned
contribution plans. Contributions in 2015 amount to € 689 million (in 2014: € 674 million).

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 52 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Beneﬁts

29.2 Provisions for Deferred Compensation
This amount represents obligations that arise if employees elect to convert part of their remuneration or bonus into an equivalentcommitment for deferred compensation which is treated as a deﬁned beneﬁt post-employment plan. The development for the
DBO and plan assets (“PA”) is as follows:
CHANGE IN NET DEFINED BENEFIT LIABILITIES (ASSETS)2015(In € million)

2014

DBO

PA

Total

DBO

PA

Total

Balance as of 1 January

744

(81)

663

529

(74)

455

Service cost

137

0

137

85

0

85

Interest cost

14

0

14

18

0

18

Interest income

0

(2)

(2)

0

(3)

(3)

Remeasurements: Actuarial (gains) and losses arising■from changes in financial assumptions

(34)

0

(34)

121

0

121

■

from changes in experience adjustments

0

0

0

6

0

6

■

from plan assets

0

3

3

0

(1)

(1)

Transfer and change in consolidation

(15)

0

(15)

(12)

0

(12)

Benefits paid

(5)

0

(5)

(3)

0

(3)

Additions

0

0

0

0

(3)

(3)

Contributions

0

(33)

(33)

0

0

0

841

(113)

728

744

(81)

663

Balance as of 31 December
RECOGNISED AS

31 December(In € million)

2015

2014

Provision

748

683

Other non-current and current assets

Total

The portion of the obligation, which is not protected by thepension guarantee association or PSV (“Pensions-Sicherungs
Verein”) in case of an insolvency of the Group companies
concerned, is covered by securities. Trust agreements between
the trust and the participating companies stipulate that some

20

20

728

663

portions of the obligation must be covered with securities in thesame amount, while other portions must be covered by 115%
leading to an overfunding of the related part of the obligation.
These amounts are recognised as other non-current and current
assets.

2.

30. Share-Based Payment
Share-based compensation — In 2007, the Group
introduced a Performance and Restricted Unit Plan (or LTIP)
which qualiﬁes as a cash settled share-based payment
plan under IFRS 2. The grant of so called “units” will not
physically be settled in shares (except with regard toGroup Executive Committee Members). For details of theconversion of some Performance Units granted to Executive
Committee Members into equity-settled plans please refer toNote 31.1 “Remuneration-Executive Committee”.

For plans settled in cash, provisions for associated services
received are measured at fair value by multiplying the numberof units expected to vest with the fair value of one LTIP unit
at the end of each reporting period, taking into account theextent to which the employees have rendered service to date.
The fair value of each LTIP unit is determined using a forward
pricing model. Changes of the fair value are recognised as
personnel expense of the period, leading to a remeasurementof the provision.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 53 l

Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Beneﬁts

Besides the equity settled SOP that have been granted in
the past, the Group offers its employees under the employee
share ownership plan (“ESOP”), which is an additional equity
settled share-based payment plan, Airbus Group shares atfair value matched with a number of free shares based on adetermining ratio. The fair value of shares provided is reﬂected
as personnel expense in the Group’s Consolidated Income
Statements with a corresponding increase in equity.

30.1 Stock Option Plans (“SOP”) and Long-Term
Incentive Plan (“LTIP”)
Based on the authorisation given to it by the Shareholders’meetings, the Group’s Board of Directors approved SOPs in2006 and 2005 (see dates below). These plans provide to themembers of the Executive Committee as well as to the Group’s
senior management the grant of options for the purchase of
the Group’s shares.

For all of the Group’s SOPs, the granted exercise price exceeded
the share price at the grant date.
In 2015, 2014, 2013, 2012, 2011 and 2010, the Board of Directorsof the Company approved the granting of LTIP Performanceand Restricted Units.
In 2014, the Group decided to hedge the share price risk inherent
in the cash-settled LTIP units by entering in equity swaps where
the reference price is based on the Airbus Group share price. To
the extent that LTIP units are hedged, compensation expense
recognised for these units will effectively reﬂect the reference
price ﬁxed under the equity swaps.
In 2015, compensation expense for LTIPs including theeffect of the equity swaps amounted to € 175 million (in 2014:€ 156 million). For the SOPs, expenses were neither recognisedin 2015 nor in 2014.

The fair value of units granted per vesting date is as follows (LTIP plan 2015):
Expected vesting date

FV of Restricted and Performance Units to be settled in cash(In € per unit granted)

July 2019

56.92

July 2020

53.90

As of 31 December 2015 provisions of € 320 million (2014: € 314 million) relating to LTIP have been recognised.
The lifetime of the Performance and Restricted Units is contractually ﬁxed (see the description of the respective tranche). The
measurement is next to other market data, mainly affected by the share price as of the end of the reporting period (€ 62.00 as of
31 December 2015) and the lifetime of the units.
The principal characteristics of the SOPs as at 31 December 2015 are summarised in the table below:
SOP 2005
Date of Shareholders’ meeting
Grant date
Number of options granted

4 May 2006

9 December 2005

18 December 2006

7,981,760

1,747,500

0264,500

1,608

221

Number of options outstanding
Total number of eligible employees

Vesting conditions(1)Expiry date

SOP 2006

11 May 2005

50% of options may be exercised after a period of two years
from the date of grant of the options; 50% of options may be exercised
as of the third anniversary of the date of grant of the options(subject to specific provisions contained in the Insider Trading Rules— see “Part 2/3.1.3 Governing Law — Dutch Regulations”)
8 December 2015

Conversion right

16 December 2016
One option for one share

Vested100%

100%

Exercise price€ 33.91€ 25.65

Exercise price conditions
Number of exercised options

110% of fair market value of the shares at the date of grant
5,205,471(1) As regards the SOP 2005, part of the options granted to the Group’s top Executives were performance related.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 54 l

1,276,500

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Beneﬁts

The following table summarises the development of the number of outstanding stock options:
Tranches

Number of options

Balance at
1 January

Exercised

Forfeited

Balance at
31 December

SOP 2005
2014

2,449,997(700,696)(20,160)

1,729,141

2015

1,729,141(1,668,678)(60,463)0

2014

706,125(194,375)

0511,7502015

511,750(241,750)(5,500)264,500

2,240,891(1,910,428)(65,963)

264,500

SOP 2006

Total options for all tranches

The weighted average share price at the date of exercise for share options exercised in 2015 was € 60.65 (2014: € 50.06).
The principal characteristics of the Performance and Restricted Units of the LTIPs as at 31 December 2015 are summarised below:

Grant date

LTIP 2010

LTIP 2011

10 November 2010

9 November 2011

LTIP 2012

LTIP 2013

LTIP 2014

LTIP 201513 December 2012 17 December 2013(3) 13 November 2014

29 October 2015

Performance and Restricted Unit plan
Units

Performance Restricted Performance Restricted Performance Restricted Performance Restricted Performance Restricted Performance Restricted

Numberof units
granted(1)2,891,540

Numberof units
outstanding
Total numberof eligible
beneficiaries
Vesting
conditions
Share priceper unit islimited at thevesting dates
to(2)Vesting dates

Number ofvested units

0

1,711

977,780 2,606,900 880,225

1,110,230 291,420

926,416 239,604

0 1,621,252 430,509 2,024,076 601,800 1,202,576 355,120 1,109,650 290,840

926,416 239,604

1,771

2,119,160 621,980

1,797

1,241,020 359,760

1,709

1,621

1,564

The Performance and Restricted Units will vest if the participant is still employed by a Group company at the respective
vesting dates and, in the case of Performance Units, upon achievement of mid-term business performance.
Vesting schedule is made up of four payments (from the LTIP 2014 onwards two payments) over two years.

--€ 55.66€ 92.34€ 94.90€ 112.62

25% each:
25% each:
25% each expected: 25% each expected:
in May 2015
in May 2014
in May 2016
in May 201750% each expected: 50% each expected:
in November 2015
in November 2014
in November 2016 in November 2017
in June 2018
in June 201925% each expected:
in May 2015
in May 2017
in May 2018
in June 2019
in July 2020
in May 2016
in November 2015
in November 2017 in November 2018
in November 2016
3,693,272 916,700 1,524,034

417,472

2,000

2,800

600

0

0

0

0

(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximumof 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of the Group) during the performance period, the Board of
Directors can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition).
(2) Corresponds to 200% of the respective reference share price. Overall, the pay-out for Performance Units is limited to a total amount of 250% of the units originally granted, eachvalued with the respective reference share price of € 27.83 (for LTIP 2012), € 46.17 (for LTIP 2013), € 47.45 (for LTIP 2014) and € 56.31 (for LTIP 2015).
(3) Date, when the vesting conditions were determined.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 55 l

02.

Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Beneﬁts

30.2 Employee Share Ownership Plan (“ESOP”)
In 2015, the Board of Directors approved a new ESOP. Eligible
employees were able to purchase a ﬁxed number of previously
unissued shares at fair value (4, 6, 9, 19, 37, 74 or 148 shares).
The Group matched each ﬁxed number of shares with a numberof free Airbus Group shares based on a determined ratio (4, 5,
6, 11, 16, 25 and 39 free shares, respectively). During a lockup
period of at least one year or, provided the purchase took placein the context of a mutual fund (regular savings plan), of ﬁve
years, employees are restricted from selling the shares, but havethe right to receive all dividends paid. Employees who directly
purchased Airbus Group shares have, in addition, the ability tovote at the annual shareholder meetings. The subscription price

was equal to the closing price at the Paris stock exchange on
26 February 2015 and amounted to € 51.63. Investing throughthe mutual fund led to a price which corresponds to the average
price at the Paris stock exchange during the 20 trading days
immediately preceding 26 February 2015, resulting in a priceof € 49.70. The Group issued and sold 477,985 ordinary shareswith a nominal value of € 1.00 each. Compensation expense(excluding social security contributions) of € 25 million wasrecognised in connection with ESOP.
An ESOP 2014 was not implemented.

31. Remuneration
31.1 Remuneration – Executive Committee
The Group’s key management personnel consist of Members of the Executive Committee and Non-Executive Board Members.
The Chief Executive Ofﬁcer (CEO), who chairs the Executive Committee, is the sole Executive Board Member. The annual
remuneration and related compensation costs of the key management personnel as expensed in the respective year can besummarised as follows:(In € million)

2015

2014

Total

Total
23.2

Executive Committee, including Executive Board Member
Salaries and other short-term benefits (including bonuses)

23.2

Post-employment benefit costs

7.5

8.7

Share-based remuneration (“LTIP award”, including associated hedge result)

15.4

16.7

Termination benefits

3.5

4.1

Other benefits

0.8

0.6

Social charges

6.5

4.9

1.5

1.5

58.4

59.7

Non-Executive Board Members
Short-term benefits (including social charges)

Total expense recognised

For additional information regarding the remuneration of Executive Committee Members (including the CEO), please also refer tothe Report of the Board of Directors, chapter 4.4 “Remuneration Report”.

Salaries and Other Short-Term Benefits (Including Bonuses)
The amount of bonuses is based on estimated performanceachievement as at the balance sheet date and difference
between previous year estimation and actual pay-out in thecurrent year. Outstanding short-term beneﬁts (bonuses) at
year-end 2015 for Executive Committee Members basedon estimated performance achievement at year-end was€ 13.4 million (2014: € 14.9 million).

In 2015, the Company does not recognise any high salarytaxes for Executive Committee Members subject to French tax
jurisdictions under the “Taxe sur les hauts revenus”, requiring for2014 and 2015 exceptional 50% charges on individual annual
remuneration exceeding € 1 million (2014: € 3.6 million).

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 56 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Beneﬁts

Post-Employment Benefit Cost

outstanding Performance and Restricted Units amounted to775,744 at 31 December 2015 (2014: 823,493), granted to thecurrent members of the Executive Committee.

The pension defined benefit obligation of the Executive
Committee, including the CEO, at 31 December 2015 amounted
to € 61.6 million (2014: € 81.6 million). The disclosed deﬁned
beneﬁt obligation reﬂects the total outstanding balance for all
Executive Committee Members subject to a deﬁned beneﬁt planand in charge at the end of the respective balance sheet date.

Also basing on the intention of the Board of Directors to increase
the long-term commitment of Executive Committee Members
to the success of the Company the Board has authorised the
Executive Committee Members to opt for partial conversionof the otherwise cash settled LTIP plans into share settledplans at each grant date of any new LTIP, requiring a minimum
conversion rate into equity settlement of 25% of total granted
Performance Units. At the conversion date, each Executive
Committee Member individually determined the split of equity
and cash settlement for the formerly granted LTIP plan. By
the end of February 2016, Executive Committee Members will
accordingly decide on the split for the 2015 LTIP plan. Afteroverall performance assessment of each of the plans, thevesting dates as determined at the initial grant date apply to
all cash settled Performance Units, however, units converted
into equity settlement only vest at the last of the vesting datesof the respective plan.

Share-Based Remuneration (“LTIP Award”)
The share-based payment expenses result from not yet forfeitedunits granted to the Executive Committee Members under the
Airbus Group LTIP which are re-measured to fair value as far
as they are cash settled.
In 2015, the members of the Executive Committee were granted
175,802 Performance Units for LTIP 2015 and 8,850 additional
units for LTIP 2014 (2014: 190,460 units), the respective shareprice of these Performance Units at grant date was € 10.3 million(2014: € 9.1 million). Fair value of outstanding LTIP balancesat the end of 2015 for all Executive Committee Members
was € 21.6 million (2014: € 18.8 million). The total number of

NUMBER OF PERFORMANCE UNITS GRANTED TO EXECUTIVE COMMITTEE MEMBERS

LTIP 2010(1)LTIP 2011(2)LTIP 2012(3)LTIP 2013

LTIP 2014

Total number of units granted

413,984

337,280

275,900

203,000

199,310

Number of cash-settled units

263,228

227,949

199,925

138,300

147,269

Number of equity-settled units
Date of conversion
Share price at date of conversion

150,756

109,33175,97564,70052,04131 December
2012

31 December
2012

28 February
2013

28 February
2014

28 February
2015€ 29.50€ 29.50€ 39.70€ 53.39€ 55.33(1) Based on performance achievement of 136% for Performance Units under 2010 LTIP.
(2) Based on performance achievement of 128% for Performance Units under 2011 LTIP.
(3) Based on performance achievement of 100% for Performance Units under 2012 LTIP.

SOPs

Other Benefits

To the other current members of the Executive Committee andto the Group’s senior management, the number of outstanding
stock options amounted to 264,500 at 31 December 2015 (2014:
2,240,891). During the year 2015, the Executive Committee
Members have exercised 241,085 options (2014: 188,128)
granted under the various SOPs. 137,500 options (2014: 118,000)
were exercised by former Executive Committee Members. As
all Airbus Group SOPs vested before 2012 no related personnel
expense was recognised in 2015 or in 2014.

Other beneﬁts include expenses for Executive Committee
Members’ company cars and accident insurance. There were no
outstanding liabilities at 31 December 2015 or 2014 respectively.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 57 l2.

Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Beneﬁts

31.2 Remuneration – Chief Executive Ofﬁcer (“CEO”)
The total remuneration of the CEO and Executive Member of the Board of Directors related to the reporting periods 2015 and2014 can be summarised as follows:
CEO (TOM ENDERS)(In € million)

2015

2014

Base salary

1,400,004

1,400,004

Annual variable pay

1,659,000

1,750,000

Post-employment benefits costs

1,079,861

1,043,679

Share-based remuneration (“LTIP award”)(1)2,401,751

2,798,039

Other benefits

69,05068,415Social charges

11,368

11,172(1) Expense related to share-based payment plans as recognised in the annual period (service period) including the result from the hedge of cash-settled share-based payment:
refer to Note 30 “Share-based payment” for details. The pay-out from vested cash settled LTIP in 2015 was € 3,148,629 (2014: € 2,374,997).

Annual Variable Pay
The annual variable pay is based on estimated performance achievement as at the balance sheet date and difference between
the previous year’s estimation and actual pay-out in the current year.

Post-Employment Benefit Costs
Post-employment beneﬁt costs relate to the aggregated amount of current service and interest costs as well as interest costs on
employee’s contribution to the deﬁned beneﬁt plan.
For the CEO, Tom Enders, the pension deﬁned beneﬁt obligation including deferred compensation amounted to € 17,118,048 asof 31 December 2015 (€ 18,584,426 as of 31 December 2014), whilst the amount of current service and interest cost related tohis pension promise accounted for in the ﬁscal year 2015 represented an expense of € 1,079,861 (2014: € 1,043,679). This amount
has been accrued in the Consolidated Financial Statements.

Share-Based Remuneration
The table below gives an overview of the interests of the current Executive Members of the Board of Directors, Tom Enders as
CEO, under the various LTIPs of the Group:
PERFORMANCE UNITS PLAN (LTIP)

LTIP
Granted date

2010

2011

2012

2013

2014

2015

Performance Units

54,40051,40050,30030,30029,50024,862Re-evaluation of PU

136%

128%

100%

100%

100%

100%

PUs re-evaluated73,98465,79250,30030,30029,50024,862

Vested in 2015■

in cash27,744

24,672

0

0

0

0

■

in shares

18,496

0

0

0

0

0

Outstanding 2015■

in cash0

24,672

37,72515,15029,50024,862■in shares

0

16,448

12,57515,150000November 2016

June 2019

July 2020

Vesting scheduleCash-settled units
Equity-settled units

For vesting dates, please refer to Note 30.1 “SOP and LTIP”
November 2017

November 2018

Vesting of all Performance Units granted to the CEO is subject to performance conditions.
Fair value of outstanding LTIP balances at the end of 2015 for the CEO was € 3,460,607 (2014: € 3,287,645).

Other Benefits
The CEO, Tom Enders, is entitled to accident insurance coverage and a company car. In 2015, the total amount expensed was€ 69,050 (2014: € 68,415). The Company has not provided any loans to / advances to / guarantees on behalf of the CEO.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 58 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

31.3 Remuneration – Board of Directors
The remuneration of the Non-Executive Members of the Board of Directors was as follows:
2015 (1)(In €)

Fixum

Denis Ranque
Manfred Bischoff

2014(1)

Attendance fees

Total

Fixum

Attendance fees

Total

180,000

70,000250,000

80,00025,000105,000

180,000

70,000250,000

80,00025,000105,000

Ralph D. Crosby

80,00035,000115,000

80,00035,000115,000

Hans-Peter Keitel

100,000

35,000135,000

100,000

30,000130,000

Hermann-Josef Lamberti

110,000

30,000140,000

110,000

35,000145,000

Anne Lauvergeon

100,000

30,000130,000

100,000

30,000130,000

Lakshmi N. Mittal

100,000

35,000135,000

100,000

30,000130,000

María Amparo Moraleda Morales

50,00020,00070,0000

00

Sir John Parker

110,000

30,000140,000

110,000

35,000145,000

Michel Pébereau

100,000

25,000125,000

100,000

30,000130,000

Josep Piqué i Camps

41,668041,668100,000

15,000115,000

Jean-Claude Trichet

Total

100,000

35,000135,000

100,000

35,000135,000

1,151,668

370,000

1,521,668

1,160,000

370,000

1,530,000(1) The Fixum related to 2014 was paid in 2015. The Fixum and the attendance fees for the last six months of 2015 will be paid in 2016.

2.7 Capital Structure and Financial Instruments
32. Total Equity
32.1 Equity Attributable to Equity Owners of the Parent
Airbus Group’s shares are exclusively ordinary shares with a par value of € 1.00. The following table shows the development of
the number of shares issued and fully paid:
2015

2014

784,780,585

783,157,635

1,539,0140Issued for exercised options

1,910,428

1,871,419

Cancelled(2,885,243)(248,469)

785,344,784

784,780,585(In number of shares)

Issued as at 1 January
Issued for ESOP

Issued as at 31 December(1,474,057)(431,832)

Outstanding as at 31 December

Treasury shares as at 31 December

783,870,727

784,348,753

Authorised shares

3,000,000,000

3,000,000,000

Holders of ordinary shares are entitled to dividends and areentitled to one vote per share at general meetings of theCompany.

Capital stock comprises the nominal amount of shares
outstanding. The addition to capital stock represents thecontribution for exercised options of € 1,910,428 (in 2014:€ 1,871,419) in compliance with the implemented SOPs andby employees of € 1,539,014 (in 2014: € 0) under the ESOPs.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 59 l2.

Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

Share premium mainly results from contributions in kind in
the course of the creation of Airbus Group, cash contributions
from the Group’s initial public offering, capital increases andreductions due to the issuance and cancellation of sharesas well as cash dividend payments to Airbus Group SE
shareholders.
On 27 May 2015, the Shareholders’ General Meeting decided
to distribute a gross amount of € 1.20 per share, which was
paid on 3 June 2015. For the ﬁscal year 2015, the Group’s
Board of Directors proposes a cash distribution payment of€ 1.30 per share.
Retained earnings include mainly the proﬁt of the period and thechanges in other comprehensive income from remeasurementsof the deﬁned beneﬁt liability net of tax which amounts to€ 491 million in 2015 (in 2014: € -1,585 million).
On 1 July 2015, Airbus Group issued a convertible bond for€ 500 million with a 7-year maturity (see Note 34.3 Financing
liabilities).
Treasury shares represent the amount paid or payable for own
shares held in treasury and relates to the share buyback in 2015.
On 27 May 2015, the Annual General Meeting (“AGM”) of theCompany authorised the Board of Directors, for a period
expiring at the AGM to be held in 2016, to issue shares andgrant rights to subscribe for shares in the Company’s sharecapital for the purpose of:■

ESOPs in the limit of 0.1% of the Company’s authorised
share capital (see Note 30 “Share-based payment”);■

funding the Company and its Group companies, provided
that such powers shall be limited to an aggregate of 0.3% of
the Company’s authorised capital (see Note 34.3 “Financing
liabilities”).

For each operation, such powers shall not extend to issuingshares or granting rights to subscribe for shares if there is nopreferential subscription right and for an aggregate issue pricein excess of € 500 million per share issuance.
Also on 27 May 2015, the AGM authorised the Board of
Directors for an 18-month period to repurchase up to 10%of the Company’s issued and outstanding share capital (i.e.
issued share capital excluding shares held by the Company or
its subsidiaries) at a price not exceeding € 85 per share.
Airbus Group has appointed an Investment Services Provider
to undertake a share buyback on behalf of the Company
for a maximum amount of € 1 billion. The buyback will takeplace between 2 November 2015 and 30 June 2016. As of
31 December 2015, the Group bought back € 264 million ofshares and recognised a ﬁnancing liability of € 223 million
for its irrevocable share buyback commitment at that date.
Recognition of the ﬁnancing liability led to a corresponding
reduction of equity.
Furthermore, the Annual General Meeting authorised both theBoard of Directors and the CEO, with powers of substitution, thatthe number of shares repurchased by the Company pursuant tothe share buyback programme are cancelled. As per decisionsof the Chief Financial Ofﬁcer upon delegation of the CEO, on
17 December 2015, a number of 2,885,243 shares have beencancelled.

32.2 Non-Controlling Interests
The non-controlling interests (NCI) from non-wholly owned subsidiaries amount to € 7 million as of 31 December 2015 (in 2014:€ 18 million). These NCI do not have a material interest in the Group’s activities and cash ﬂows.
Subsidiaries with NCI that are material to their stand-alone ﬁnancial information are:Principal place of business

Elbe
Flugzeugwerke GmbHGEWTechnologies (Pty) Ltd.

AlestisAerospace S.L.

Dresden (Germany)

Pretoria (South Africa) La Rinconada (Spain)

PFW
Aerospace GmbH

Speyer (Germany)

2015

2014

2015

2014

2015

2014

2015

2014

35%

35%

25%

25%

38.09%

38.84%

25.10%

25.10%

NCI (in € million)

19

21

9

11

(25)

(25)

(28)

(21)

Profit (loss) allocated to NCI (in € million)

2

2

2

1

(7)

(10)

0

1

Ownership interest held by NCI

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 60 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

33. Capital Management

The Group seeks to maintain a strong ﬁnancial proﬁle to safeguard its going concern, ﬁnancial ﬂexibility as well as shareholders’,
credit investors’ and other stakeholders’ conﬁdence in the Group. Consequently, operating liquidity is of great importance.
As part of its capital management, it is one of the Group’s objectives to maintain a strong credit rating by institutional rating
agencies. This enables the Group to contain its cost of capital which positively impacts its stakeholder value (entity value). Next
to other non-ﬁnancial parameters, the credit rating is based on factors such as, cash ﬂow ratios, proﬁtability and liquidity ratios.
The Group monitors these ratios to keep them in a range compatible with a strong rating.
Long-term rating

Outlook

Short-term ratingStandard and Poor’s

Rating agency

A

Positive(1)A-1

Moody’s Investors Services

A2

StableP-1

Fitch Ratings (unsolicited)A-

StableF-2(1) The outlook with Standard and Poor’s has been changed to positive from stable in September 2015.

The Group’s stand-alone ratings reﬂect the strong backlog
providing revenue visibility and Airbus’ leading market position,
the Group’s strong liquidity and improving credit metrics as wellas management’s focus on programmes execution, proﬁtability
and cash generation improvement. The rating is constrained by
the Group’s exposure to structural currency risk.
In accordance with the Group’s conservative ﬁnancial policy, astrong rating is key to maintain a wide array of funding sources at
attractive conditions, to have broad access to long-term hedging
and to strengthen Airbus’ position as a solid counterparty for
its customers and suppliers.
Among other indicators, the Group uses a Value BasedManagement approach in order to guide the Company towards
sustainable value creation by generating ﬁnancial returns above
the cost of capital.
The key elements of the Value Based Management concept are:the deﬁnition of ﬁnancial returns;
the deﬁnition of the Company’s capital base; and■the measurement of value creation derived from the two
above.
■■The Group uses Return on Capital Employed (“RoCE”) to
measure the value created by ﬁnancial returns relative toits capital base. RoCE, as deﬁned by the Group, uses EBIT
pre-goodwill impairment and exceptionals for the numerator
and Average Capital Employed for the denominator. The
Average Capital Employed for the Group is deﬁned as theaverage of the annual opening and closing positions of Fixed
Assets plus Net Operating Working Capital plus operating cash
less Other Provisions.
Financial value is created if proﬁts relative to the Group’s Capital
Employed exceed the Company’s cost of capital. Value canbe measured by comparing RoCE to the WACC. A ﬁve year
plan for a value creation ambition is constructed annually, andis composed of (1) RoCE, (2) EBIT pre-goodwill impairment
and exceptionals, and (3) Free Cash Flow, which is deﬁned
as Cash provided by operating activities and Cash used forinvesting activities less Change of securities, Contribution toplan assets for pensions and realised Treasury swaps. The
Company’s long-term aspiration is to reach the ﬁrst quartile of
RoCE performance among our aerospace and defence peers.
The Group also monitors the level of dividends paid to its
shareholders.
The Group generally satisfies its obligations arising fromshare-based payment plans by issuing new shares. In order
to avoid any dilution of its current shareholders out of theseshare-based payment plans, the Group has accordingly decided
to buyback and cancel its own shares following the decisionsof the Board of Directors and approval of the Annual General
Meeting. Apart from this purpose, the Group generally does
not trade with treasury shares.
The Group complies with the capital requirements underapplicable law and its Articles of Association.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 61 l2.

Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

34. Net Cash
The net cash-position provides ﬁnancial ﬂexibility to fund the Group’s operations, to react to the Group’s business needs and risk
proﬁle and to return capital to the shareholders.
31 December(In € million)

2015

2014

Cash and cash equivalents

7,489

7,271

Current securities

1,788

3,183

Non-current securities

9,851

5,989

Short-term financing liabilities(2,790)(1,073)Long-term financing liabilities(6,335)(6,278)Total

10,003

9,092

Derivative instruments recognised in the Group’s Statementof Financial Position consist of (i) instruments that are enteredinto as hedges of the Group’s operating activities or interest
result, and (ii) embedded foreign currency derivatives that arise
from separating the foreign currency component from certain
operating contracts. Cash ﬂows resulting from the settlement ofthese derivatives are therefore recorded as part of Group cash
ﬂow from operations. Similarly, ﬁnancial assets and liabilities
arising from customer financing activities and refundable
advances from European governments are considered part of
the Group’s operating activities and related cash ﬂows are hence
recognised as cash ﬂows from operating activities.

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

2015

2014

Bank account and petty cash

1,504

2,280

Short-term securities (at fair value through profit and loss)

3,220

3,261

Short-term securities (available-for-sale)

2,851

1,744

1

4

7,576

7,289

OthersTotal cash and cash equivalents
Recognised in disposal groups classified as held for sale
Recognised in cash and cash equivalents

87

18

7,489

7,271

Only securities with a maturity of three months or less from the date of the acquisition, that are readily convertible to known
amounts of cash and which are subject to an insigniﬁcant risk of changes in value, are recognised in cash equivalents.

34.2 Securities
The majority of the Group’s securities consists of debt securities
and are classiﬁed as available-for-sale ﬁnancial assets andcarried at their fair values (see Note 35.2 “Carrying amounts
and fair values of ﬁnancial instruments” for more details on how
available-for-sale assets are accounted for).
The Group’s security portfolio amounts to € 11,639 million and€ 9,172 million as of 31 December 2015 and 2014, respectively.
The security portfolio contains a non-current portionof available-for-sale-securities of € 9,848 million (in 2014:€ 5,985 million) and securities designated at fair value throughproﬁt and loss of € 3 million (in 2014: € 4 million) as well as acurrent portion of available-for-sale-securities of € 1,788 million(in 2014: € 3,183 million).

Included in the securities portfolio as of 31 December 2015
and 2014, respectively, are corporate and government bonds
bearing either ﬁxed rate coupons (€ 10,956 million nominal value;comparably in 2014: € 8,666 million) or ﬂoating rate coupons(€ 397 million nominal value; comparably in 2014: € 250 million)
and foreign currency funds of hedge funds (€ 8 million nominal
value; 2014: € 8 million).
When the Group enters into securities lending activities, thesecurities pledged as collateral continue to be recognised on
the balance sheet. There were no such securities pledged asof 31 December 2015 and 2014.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 62 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

34.3 Financing Liabilities
Financing liabilities comprise obligations towards ﬁnancial
institutions, issued corporate bonds, deposits made bycustomers of Airbus Group Bank, borrowings received fromjoint ventures and other parties as well as ﬁnance lease liabilities.
Financing liabilities are recorded initially at the fair value ofthe proceeds received, net of transaction costs incurred.
Subsequently, ﬁnancing liabilities are measured at amortisedcost, using the effective interest rate method with any difference
between proceeds (net of transaction costs) and redemption
amount being recognised in total ﬁnance income (cost) over theperiod of the ﬁnancing liability.
Financing liabilities to ﬁnancial institutions include liabilities
from securities lending transactions. In securities lendingtransactions, the Group receives cash from its counterparty
and transfers the securities subject to the lending transaction
as collateral. The amount of cash received is recognised as aﬁnancing liability. The securities lent are not derecognised, but
remain on the Group’s balance sheet.
The Group has issued several euro-denominated bonds under
its Euro Medium Term Note Programme (“EMTN”) and placed
a US dollar-denominated bond on the US institutional market
under Rule 144A. It has also issued a convertible bond in euro.
Furthermore, the Group has long-term US dollar-denominatedloans outstanding with the European Investment Bank (“EIB”)
and the Development Bank of Japan (“DBJ”).

The terms and repayment schedules of these bonds and loans are as follows:

Bond / Loan

Principal
amountIssuancedate

Coupon orinterest rate

Effective
interest rate

Maturity
date

Additionalfeatures

EMTN 15 years€ 500,000,000

Sept. 2003

5.50%

5.58%

Sept. 2018

Interest rate swapped into
3M Euribor +1.72%

EMTN 7 years€ 1,000,000,000

Aug. 2009

4.625%

4.68%

Aug. 2016

Interest rate swapped into
3M Euribor +1.57%

EMTN 10 years€ 1,000,000,000

Apr. 20142.375%

2.394%

Apr. 2024

Interest rate swapped into
3M Euribor +1.40%

EMTN 15 years€ 500,000,000

Oct. 20142.125%

2.194%

Oct. 2029

Interest rate swapped into
3M Euribor +0.84%

US$ 1,000,000,000

Apr. 2013

2.70%

2.73%

Apr. 2023

Interest rate swapped into
3M Libor +0.68%

1.386%

Convertible into
Airbus Group SE shares at
July 2022€ 99.54 per share

US$ Bond 10 years
Convertible bond
7 years€ 500,000,000

July 2015

0.00%

Jan. 2021

Interest rate swapped
into 4.76% fixedInterest rate swapped
into 3.2% fixed

DBJ 10 years

US$ 300,000,000

Jan. 2011

3M US-Libor+1.15%

EIB 10 years

US$ 720,750,000

Aug. 2011

3M US-Libor+0.85%

Aug. 2021

EIB 7 years

US$ 406,110,000

Feb. 2013

3M US-Libor+0.93%

Feb. 2020

EIB 10 years

US$ 626,850,000

Dec. 2014

2.52%

EIB 10 years

US$ 320,130,000

Dec. 2015

6M US-Libor+0.559%The Group can issue commercial paper under the so called“billet de trésorerie” programme at ﬂoating or ﬁxed interest rates
corresponding to the individual maturities ranging from 1 day
to 12 months. The programme has been set up in 2003 with amaximum volume of € 2 billion, increased in 2013 to a maximum
volume of € 3 billion. As of 31 December 2015, there was nooutstanding amount under the programme. The Group signed
in April 2015 the documentation of a US$ 2 billion commercial
paper programme. As of 31 December 2015, the outstanding
amount was US$ 550 million.

2.52%

Dec. 2024

Interest rate swapped into
3M Libor +0.61%

Dec. 2025

Financing liabilities include outstanding debt of € 129 million(2014: € 147 million) relating to a loan Airbus received fromAir 2 US in 1999 by way of a reinvestment note amounting to
US$ 800 million, bearing a ﬁxed interest rate of 9.88%, andother liabilities related to sales ﬁnancing (see Note 25 “Sales
ﬁnancing transactions”).
On 1 July 2015, the Group issued convertible bond for€ 500 million, with a 7-year maturity. The bond bear a couponof 0% and was issued at 102% of par. Its effective interest rate,
after separation of the equity conversion option, is 1.386%.
In December 2015, the Group entered into a US$ 320 million
loan agreement with the EIB maturing in December 2025.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 63 l2.

Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

Not exceeding 1 year

Over 1 year up to 5 years

More than 5 years

Total

1,523

550

2,893

4,966

Liabilities to financial institutions

349

1,112

1,001

2,462

Loans

255

163

240

658

Liabilities from finance leases

13

145

230

388

(In € million)

Bonds

Others(1)

650

1

0

651

2,790

1,971

4,364

9,125

Bonds

1

1,543

2,374

3,918

Liabilities to financial institutions

22

526

1,225

1,773

Loans

285

243

181

709

Liabilities from finance leases

12

70

116

198

Others(1)

753

0

0

753

1,073

2,382

3,896

7,351

31 December 2015(2)31 December 2014(2)(1) Included in “others” are financing liabilities to joint ventures.
(2) Financing liabilities include non-recourse Airbus debt of € 94 million in 2015 (€ 46 million in 2014).

The aggregate amounts of ﬁnancing liabilities maturing during the next ﬁve years and thereafter as of 31 December 2015 and asof 31 December 2014, are as follows:
31 December(In € million)2015

1 year

2,790

2014
1,073

2 years

228

1,240

3 years835

196

4 years252

723

5 years

656

223

Thereafter

4,364

3,896

Total

9,125

7,351

35. Information about Financial Instruments
35.1 Financial Risk Management
By the nature of its activities, the Group is exposed to a variety
of ﬁnancial risks: (i) market risks, in particular foreign exchangerisk, but also interest rate risk, equity price risk and commodity
price risk, (ii) liquidity risk and (iii) credit risk. The Group’s
overall ﬁnancial risk management activities focus on mitigating
unpredictable ﬁnancial market risks and their potential adverse
effects on the Group’s operational and ﬁnancial performance.
The ﬁnancial risk management of the Group is generally carriedout by the Corporate Finance department at the Group underpolicies approved by the Board of Directors or by the Chief
Financial Ofﬁcer. The identiﬁcation, evaluation and hedging of
the ﬁnancial risks is in the joint responsibility of establishedtreasury committees and the Group’s Divisions.
The Group uses ﬁnancial derivatives solely for risk mitigating
purposes (“hedging”) and applies hedge accounting for asigniﬁcant portion of its hedging portfolio.

Market Risk
Foreign exchange risk — Foreign exchange risk arises
when future commercial transactions or ﬁrm commitments,
recognised monetary assets and liabilities and net investments
in foreign operations are denominated in a currency that is not
the entity’s functional currency.
The Group manages a long-term hedge portfolio with maturities
of several years covering its net exposure to US dollar sales,
mainly from the activities of Airbus. This hedge portfolio covers
a large portion of the Group’s ﬁrm commitments and highly
probable forecast transactions.
Most of the Group’s revenue is denominated in US dollars, while
a major portion of its costs is incurred in euro and to someextent in other foreign currencies. Consequently, to the extent
that the Group does not use ﬁnancial instruments to hedge its
exposure resulting from this currency mismatch, its proﬁts will

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 64 lFinancial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

be affected by changes in the €/US$ exchange rate. As theGroup intends to generate proﬁts primarily from its operations
rather than through speculation on exchange rate movements,
it uses hedging strategies to manage and minimise the impact
of exchange rate ﬂuctuations on these proﬁts.
With respect to its commercial aircraft products, the Grouptypically hedges ﬁrmly committed sales in US dollars using a“ﬁrst ﬂow approach”. Under that approach, the foreign currency
derivatives the Group enters into are designated as a hedge of
the ﬁrst US dollar inﬂows received from the customer at aircraft
delivery in a given month. The strategy implies that only a portionof the expected monthly customer payments made at aircraft
delivery are hedged. For this reason, a reduction of monthly
cash inﬂows as a result of postponements or order cancellations
have no impact on the effectiveness of the hedge as long as theactual gross US dollar cash inﬂows received at aircraft delivery
in a particular month exceed the portion designated as being
hedged in that month.
Similarly, though to a much lesser extent, the Group hedges its
expected foreign currency exposure arising from US dollar or
pound sterling cash outﬂows in the commercial aircraft businesson a ﬁrst outﬂow basis.
In military aircraft and non-aircraft businesses, the Group hedges
in and outﬂows in foreign currencies from ﬁrmly committed
or highly probable forecast sales and purchase contracts.
Here, foreign currency derivatives are typically contracted inlower volumes; they may be accounted for using a ﬁrst ﬂow
approach or are designated as hedges of speciﬁc agreed
milestone payments. The amount of the expected ﬂows to behedged can cover up to 100% of the equivalent of the net US
dollar exposure at inception. The coverage ratio considers thevariability in the range of potential outcomes taking into accountmacroeconomic movements affecting spot rates and interest
rates as well as the robustness of the commercial cycle.
In situations where the payment dates for hedged firmly
committed cash ﬂows are not ﬁxed and subject to potentiallysigniﬁcant delays, the Group may use rollover strategies, usually
involving F/X swaps.
For all foreign currency hedges of future cash ﬂows which qualify
for hedge accounting under IAS 39, the Group uses the cash
ﬂow hedge model, which requires (i) recognising the effective
portion of the fair value changes of the hedging derivatives inequity (within other comprehensive income) and (ii) recognising
the effect of the hedge in proﬁt or loss when the hedged cash
ﬂows affect proﬁt or loss.
In addition, the Group hedges currency risk arising fromﬁnancial assets or liabilities denominated in currencies otherthan the euro, including foreign currency receivable and payableaccounts, as well as foreign currency denominated fundingtransactions or securities. The Group applies hedge accounting
if a mismatch in terms of proﬁt or loss recognition of the hedging

instrument and hedged item would otherwise occur. Frequently,
however, the currency-induced gains or losses of the hedging
instrument and the hedged item match in terms of proﬁt orloss recognition (“natural hedge”), so no hedge accounting
is required. Sometimes such gains or losses may end up in
different sections of the income statement (such as operating
proﬁt for the hedged item and ﬁnancial result for the hedging
instrument). If so, the Group may choose to present the gains
or losses of both the hedging instrument and the hedged
item in the same income statement line item if certain formal
requirements are met.
As hedging instruments, the Group primarily uses foreign
currency forwards, foreign currency options, some synthetic
forwards and to a minor extent non-derivative financial
instruments.
The Group also has foreign currency derivative instruments
which are embedded in cer tain purchase contracts
denominated in a currency other than the functional currencyof any substantial party to the contract, principally in US dollar
and pound sterling. If such embedded derivatives are required
to be accounted for separately from the host purchase contract,
related gains or losses are generally recognised in other ﬁnancial
result. However, if the embedded derivatives qualify for hedge
accounting, the Group might choose to designate them as ahedging instrument in a hedge of foreign currency risk, in whichcase they are accounted for under the cash ﬂow hedge model
as described above.
Interest rate risk — The Group uses an asset-liability
management approach with the objective to limit its interest
rate risk. The Group undertakes to match the risk proﬁle ofits interest-bearing assets with those of its interest-bearing
liabilities. The remaining net interest rate exposure is managed
through several types of interest rate derivatives, such as
interest rate swaps and interest rate futures contracts, in orderto minimise risks and ﬁnancial impacts.
The vast majority of related interest rate hedges qualify for hedge
accounting, and most of them are accounted for under the fairvalue hedge model. As a result, both the fair value changes ofthese derivatives and the portion of the hedged items’ fair valuechange that is attributable to the hedged interest rate risk arerecognised in proﬁt and loss, where they offset to the extent
the hedge is effective.
A few interest rate swaps that have been entered into as ahedge of certain of the Group’s variable rate debt (see Note 34.3
“Financing liabilities”) are accounted for under the cash ﬂow
hedge model, and related fair value gains are recognised in
OCI and reclassiﬁed to proﬁt or loss when the hedged interest
payments affect proﬁt or loss.
The Group invests in ﬁnancial instruments such as overnight
deposits, certificates of deposits, commercial papers,
other money market instruments and short-term as well as

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 65 l2.

Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

medium-term bonds. For its ﬁnancial instruments portfolio,
the Group has an Asset Management Committee in place thatmeets regularly and aims to limit the interest rate risk on a fairvalue basis through a value-at-risk approach.
Commodity price risk — The Group is exposed to risk relating
to ﬂuctuations in the prices of commodities used in the supply
chain. The Group manages these risks in the procurement
process and to a certain extent uses derivative instruments inorder to mitigate the risks associated with the purchase of raw
materials. To the extent that the gains or losses of the derivative
and those of the hedged item or transaction do not matchin terms of proﬁt or loss, the Group applies cash ﬂow hedge
accounting to the derivative instruments.
Equity price risk — The Group is to a small extent invested inequity securities mainly for operational reasons. The Group’s
exposure to equity price risk is hence limited. Furthermore, theGroup is exposed under its LTIP to the risk of Airbus Group shareprice increases. The Group limits these risks through the use of
equity derivatives that qualify for hedge accounting and havebeen designated as hedging instruments in a cash ﬂow hedge.
Sensitivities of market risks — The approach used to measure
and control market risk exposure within the Group’s ﬁnancial
instrument portfolio is, amongst other key indicators, thevalue-at-risk (“VaR”). The VaR of a portfolio is the estimatedpotential loss that will not be exceeded over a speciﬁed periodof time (holding period) from an adverse market movementwith a speciﬁed conﬁdence level. The VaR used by the Groupis based upon a 95% conﬁdence level and assumes a ﬁve-day
holding period. The VaR model used is mainly based on theso called “Monte-Carlo-Simulation” method. Deriving thestatistical behaviour of the markets relevant for the portfolio
out of market data from the previous two years and observed
interdependencies between different markets and prices, themodel generates a wide range of potential future scenarios formarket price movements.

The Group’s VaR computation includes the Group’s ﬁnancial
debt, short-term and long-term investments, foreign currency
forwards, swaps and options, commodity contracts, ﬁnancelease receivables and liabilities, foreign currency trade payables
and receivables, including intra-Group payables and receivables
affecting Group proﬁt and loss.
Although VaR is an important tool for measuring market risk,
the assumptions on which the model is based give rise to some
limitations, including the following:
A ﬁve-day holding period assumes that it is possible to hedge
or dispose of positions within that period. This is considered
to be a realistic assumption in almost all cases but may not be
the case in situations in which there is severe market illiquidity
for a prolonged period.
■
A 95% conﬁdence level does not reﬂect losses that may occur
beyond this level. Even within the model used there is a 5%
statistical probability that losses could exceed the calculated
VaR.
■
The use of historical data as a basis for estimating thestatistical behaviour of the relevant markets and finallydetermining the possible range of future outcomes out of
this statistical behaviour may not always cover all possible
scenarios, especially those of an exceptional nature.
■

The Group uses VaR amongst other key ﬁgures in order todetermine the riskiness of its ﬁnancial instrument portfolio andin order to optimise the risk-return ratio of its ﬁnancial asset
portfolio. Further, the Group’s investment policy deﬁnes a
VaR limit for the total portfolio of cash, cash equivalents andsecurities. The total VaR as well as the different risk-factor
speciﬁc VaR ﬁgures of this portfolio are measured and serve
amongst other measures as a basis for the decisions of theGroup’s Asset Management Committee.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 66 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

A summary of the VaR position of the Group’s ﬁnancial instruments portfolio at 31 December 2015 and 2014 is as follows:
Total VaR

Equity price VaR

FX hedges for forecast transactions
or firm commitments

1,814

0

1,870

0

181

Financing liabilities, financial assets(including cash, cash equivalents
securities and related hedges)

210

162

82

0

15

Finance lease receivables andliabilities, foreign currency trade
payables and receivables

91

0

24

0

83

(In € million)

Currency VaR Commodity price VaRInterest rate VaR

31 December 2015

Commodity contracts

7

0

3

6

0

Equity swaps

11

11

0

0

0

Diversification effect

(418)

(8)

(172)

0

(92)

All financial instruments

1,715

165

1,807

6

187

FX hedges for forecast transactions
or firm commitments

1,052

0

1,135

0

122

Financing liabilities, financial assets(including cash, cash equivalents
securities and related hedges)

407

401

33

0

32

Finance lease receivables andliabilities, foreign currency trade
payables and receivables

55

0

19

0

57

Commodity contracts

9

0

2

9

0

31 December 2014

Equity swaps

17

17

0

0

0

Diversification effect

(489)

(17)

(74)

0

(27)

All financial instruments

1,051

401

1,115

9

184

The increase of total VaR as of 31 December 2015 is mainly attributable to a strong increase of market volatilities, in particularforeign exchange (“FX”) volatility in combination with an increased net foreign exchange portfolio in comparison to year-end
2014. The Group uses its derivative instruments entirely for hedging purposes. As a result, the respective market risks of these
hedging instruments are – depending on the hedges’ actual effectiveness – offset by corresponding opposite market risks of theunderlying forecast transactions, assets or liabilities. Under IFRS 7, the underlying forecast transactions do not qualify as ﬁnancial
instruments and are therefore not included in the tables shown above. Accordingly, the VaR of the FX hedging portfolio in theamount of € 1,814 million (2014: € 1,052 million) cannot be considered as a risk indicator for the Group in the economic sense.

Liquidity Risk
The Group’s policy is to maintain sufﬁcient cash and cash
equivalents at any time to meet its present and futurecommitments as they fall due. The Group manages its liquidity
by holding adequate volumes of liquid assets and maintains
a committed credit facility (€ 3.0 billion as of 31 December
2015 and 2014) in addition to the cash inﬂow generated by its
operating business. The Group continues to keep within theasset portfolio the focus on low counterparty risk. In addition,
the Group maintains a set of other funding sources, andaccordingly may issue bonds, notes and commercial papers

or enter into security lending agreements. Adverse changes in
the capital markets could increase the Group’s funding costs
and limit its ﬁnancial ﬂexibility.
Further, the management of the vast majority of the Group’s
liquidity exposure is centralised by a daily cash concentration
process. This process enables the Group to manage its liquidity
surplus as well as its liquidity requirements according to theactual needs of its subsidiaries. In addition, managementmonitors the Group’s liquidity reserve as well as the expectedcash ﬂows from its operations.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 67 l2.

Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

The contractual maturities of the Group’s ﬁnancial liabilities, based on undiscounted cash ﬂows and including interest payments,
if applicable, are as follows:(In € million)

Carrying Contractual
amount cash flows< 1 year

1 year2 years

2 years3 years

3 years4 years

4 years- > 5 years
5 years

31 December 2015
Non-derivative financial liabilities(22,074)(23,355)(15,311)(832)(1,113)

(408)

(762)

Derivative financial liabilities(10,587)(12,690)(3,973)(2,747)(3,518)(1,898)(506)(4,929)
(48)

Total

(32,661)(36,045)(19,284)(3,579)(4,631)(2,306)(1,268)(4,977)

Non-derivative financial liabilities(18,905)(20,008)(11,625)(1,786)

(586)

(956)

(353)

(4,702)Derivative financial liabilities(5,503)(6,976)(2,293)(1,747)(1,413)

(895)

(543)

(85)

(24,408)(26,984)(13,918)(3,533)(1,999)(1,851)(896)(4,787)31 December 2014

Total

Non-derivative ﬁnancial liabilities included in the table above comprise ﬁnancing liabilities and ﬁnance lease liabilities as presented
in the tables of Note 35.2 “Carrying amounts and fair values of ﬁnancial instruments”. Due to their speciﬁc nature, namely theirrisk-sharing features and uncertainty about the repayment dates, the European Governments refundable advances, which amountto € 7,286 million at 31 December 2015 (€ 6,528 million at 31 December 2014) are not included.

Credit Risk
The Group is exposed to credit risk to the extent of
non-performance by either its customers (e.g. airlines) or its
counterparts with regard to ﬁnancial instruments or issuers ofﬁnancial instruments for gross cash investments. However, theGroup has policies in place to avoid concentrations of credit
risk and to ensure that credit risk is limited.
As far as central treasury activities are concerned, credit risk
resulting from ﬁnancial instruments is managed on Group level.
In order to ensure sufﬁcient diversiﬁcation, a credit limit system
is used.
The Group monitors the performance of the individual ﬁnancial
instruments and the impact of the market developments on
their performance and takes appropriate action on foreseeable
adverse development based on pre-deﬁned procedures andescalation levels.

Sales of products and services are made to customers after
having conducted appropriate internal credit risk assessment.
In order to support sales, primarily at Airbus and ATR, the Group
may agree to participate in the ﬁnancing of customers, on acase-by-case basis, directly or through guarantees provided tothird parties. In determining the amount and terms of the ﬁnancing
transaction, Airbus and ATR take into account the airline’s credit
rating and economic factors reﬂecting the relevant ﬁnancial
market conditions, together with appropriate assumptions as
to the anticipated future value of the ﬁnanced asset.
The booked amount of ﬁnancial assets represents the maximum
credit exposure. The credit quality of ﬁnancial assets can beassessed by reference to external credit rating (if available)
or internal assessment of customers’ (such as airlines’)
creditworthiness by way of internal risk pricing methods.

The following table breaks down the carrying amounts of the Group’s non-cash loans and receivables including ﬁnance leases,
separately showing those that are impaired, renegotiated or past due:
31 December(In € million)

2015

2014

Receivables, neither past due nor impaired

7,795

6,592

Not past due following negotiations and not impaired

139

94

Receivables impaired individually

170

405

Receivables not impaired and past due ≤ 3 months

1,062

1,173

Receivables not impaired and past due > 3 and ≤ 6 months

432

271

Receivables not impaired and past due > 6 and ≤ 9 months

157

95

Receivables not impaired and past due > 9 and ≤ 12 months

294

141

Receivables not impaired and past due > 12 months

Total

484

387

10,533

9,158

The management believes that the unimpaired amounts that are past due are still collectible in full, based on historic payment
behaviour and analysis of customer credit risk, including underlying customers’ credit ratings if they are available.
At year-end there was no indication that any ﬁnancial assets carried at fair value were impaired.
AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 68 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

35.2 Carrying Amounts and Fair Values of Financial Instruments
Financial instruments — The Group’s financial assets
mainly consist in cash, short to medium-term deposits andsecurities. The Group’s ﬁnancial liabilities include trade liabilities,
obligations towards ﬁnancial institutions, issued bonds andrefundable advances from European governments. All
purchases and sales of ﬁnancial assets are recognised on thesettlement date according to market conventions. The Group
classiﬁes its ﬁnancial assets in the following three categories:(i) at fair value through proﬁt or loss, (ii) loans and receivables
and (iii) available-for-sale ﬁnancial assets. Their classiﬁcation isdetermined by management when ﬁrst recognised and depends
on the purpose for their acquisition.
Within the Group, all investments in entities which do not qualify
for consolidation or equity-method accounting are classiﬁed as
non-current available-for-sale ﬁnancial assets. They are includedin the line other investments and other long-term ﬁnancial assets
in the Consolidated Statement of Financial Position.
Available-for-sale financial assets — Financial assets
classiﬁed as available-for-sale are accounted for at fair value.
Changes in their fair value other than impairment losses andforeign exchange gains and losses on monetary items arerecognised directly within AOCI. As soon as such ﬁnancial
assets are sold or otherwise disposed of, or are determined to
be impaired, the cumulative gain or loss previously recognisedin equity is recorded as part of other income (other expense)from investments in the Consolidated Income Statement forthe period. Interest earned on the investment is presented asinterest income in the Consolidated Income Statement using theeffective interest method. Dividends earned on investment arerecognised as other income (other expense) from investmentsin the Consolidated Income Statement when the right to thepayment has been established.
In case of the impairment of debt instruments classiﬁed asavailable-for-sale, interest continues to be accrued at the original
effective interest rate on the reduced carrying amount of theasset and is recorded in ﬁnancial result. If, in a subsequent year,
the fair value of a debt instrument increases and the increase canbe objectively related to an event occurring after the impairment
loss was recognised in the Consolidated Income Statement, theimpairment loss is reversed through the Consolidated Income
Statement.
Financial assets at fair value through proﬁt or loss —Within the Group, only derivatives not designated as hedges
are categorised as held for trading. Furthermore, the Group
designates certain ﬁnancial assets (such as investments inaccumulated money market funds) at fair value through proﬁt
or loss at initial recognition if they are part of a group of ﬁnancial
assets that is managed and its performance is evaluated on a fairvalue basis, in accordance with a documented risk management
or investment strategy.
The Group assigns its ﬁnancial instruments into classes basedon their balance sheet category.

2.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 69 lNotes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

The following tables present the carrying amounts and fair values of ﬁnancial instruments by class and by IAS 39 measurement
category as of 31 December 2015 and 2014:

Fair value throughprofit or loss

31 December 2015
(In € million)

Held fortrading

DesignatedFair value
for hedge
relations

Availablefor-sale

Fair
value

Fair
value

Loans and receivables
and financial liabilities
at amortised cost
Other(3)Financial
instruments
total

Amortised
cost

Book
value

Fair
value

Fair
value

AssetsOther investments and otherlong-term financial assets■

Equity investments(1)(2)

0

0

0

1,232

0

0

0

1,232

1,232

■

Customer financings(3)

0

0

0

0

553

553

168

721

721

■

Other loans

0

0

0

0

717

717

0

717

717

Trade receivables

0

0

0

0

7,877

7,877

0

7,877

7,877
1,280

Other financial assets

0
(6)

■

Derivative instruments■

Non-derivative instruments

Securities
Cash and cash equivalents

Total

317

0

963

0

0

0

0

1,280

0

0

0

0

1,218

1,218

0

1,218

1,218

0

3

0

11,63600

011,639

11,639

0

3,220

0

2,851

1,418

1,418

0

7,489

7,489

317

3,223

963

15,71911,783

11,783

168

32,17332,17300

0

0(4,966)(5,091)

0(4,966)(5,091)

Liabilities
Financing liabilities■■■

Issued bonds andcommercial papers
Liabilities to banks and otherfinancing liabilities

0

0

0

0

(3,771)(3,822)0(3,771)(3,822)Finance lease liabilities(4)

0

0

0

0

0

0

(388)

(388)

(388)

(427)

0

(10,160)

0

0

0

0

(10,587)(10,587)(7,286)

Other financial liabilities■■

Derivative instruments(7)European Governments
refundable advances(5)

0

0

0

0

(7,286)(7,286)0(7,286)

Other

(74)

0

0

0

(1,112)(1,112)0(1,186)(1,186)

Trade liabilities

0

0

0

0

(11,763)(11,763)

0(11,763)(11,763)(501)

0(10,160)

0(28,898)(29,074)■

Total(388) (39,947) (40,123)(1) Other than those accounted for under the equity method.
(2) For certain unlisted equity investments price quotes are not available and fair values may not be reliably measurable using valuation techniques because the range ofreasonable fair value estimates is significant and the probabilities of the various estimates within the range cannot be reasonably assessed. These equity investments areaccounted for at cost, and their fair values as reported in the table above equal their carrying amounts. As of 31 December 2015, the aggregate carrying amount of theseinvestments was € 404 million.
(3) This includes finance lease receivables, which are not assigned to an IAS 39 measurement category, but reported as “other”.
(4) Finance lease liabilities are accounted for in accordance with IAS 17 in a manner that is similar, though not identical in all respects, to amortised-cost accounting under IAS 39.
They are therefore assigned to the category “other”.
(5) The European Governments refundable advances of € 7,286 million are measured at amortised cost. Fair values cannot be reliably measured because their risk sharing natureand the uncertainty of the repayment dates give rise to a broad range of reasonable fair value estimates and make it impossible to reasonably assess the probabilities of thevarious estimates within the range. This may change and reliable fair value measures become available as the related programmes approach the end of production.
(6) This includes credit value adjustments of € -47 million, of which € -28 million is recognised in OCI.
(7) This includes debit value adjustments of € 117 million, of which € 95 million is recognised in OCI.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 70 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

31 December 2014
(In € million)

Fair value throughprofit or loss

Fair value
for hedge
relations

Availablefor-sale

Held fortrading

Designated

Fair
value

Fair
value

Loans and receivables
and financial liabilities
at amortised cost
Amortised
cost

Other(3)Financial
instruments
total
Book
value

Fair
value

Fair
value

AssetsOther investments and otherlong-term financial assets■

Equity investments(1)(2)

0

0

0

617

0

0

0

617

617

■

Customer financings(3)

0

0

0

0

426

426

17

443

443

■

Other loans

0

0

0

0

876

876

0

876

876

Trade receivables

0

0

0

0

6,798

6,798

0

6,798

6,798

266

0

444

0

0

0

0

710

710

0

0

0

0

1,040

1,040

0

1,040

1,040

Other financial assets■

Derivative instruments(6)■Non-derivative instruments

Securities

0

4

0

9,168

0

0

0

9,172

9,172

Cash and cash equivalents

0

3,261

0

1,744

2,266

2,266

0

7,271

7,271

266

3,265

444

11,52911,406

11,4061726,927

26,927

Issued bonds andcommercial papers

0

0

0

0

(3,918)(4,227)

0(3,918)(4,227)

Liabilities to banks andother financing liabilities

0

0

0

0

(3,235)(3,291)0(3,235)(3,291)

Finance lease liabilities(4)

0

0

0

0

0

0

(198)

(198)

(198)

(370)

0

(5,133)

0

0

0

0

(5,503)(5,503)(6,528)

Total
Liabilities
Financing liabilities■■■

Other financial liabilities■■■

Derivative instruments(7)European Governments
refundable advances(5)Other

Trade liabilities

Total

0

0

0

0

(6,528)(6,528)0(6,528)

(137)

0

0

0

(1,234)(1,234)0(1,371)(1,371)

0

0

0

0

(10,183)(10,183)0(10,183)(10,183)(507)

0(5,133)0(25,098)(25,463)(198)(30,936) (31,301)(1) Other than those accounted for under the equity method.
(2) For certain unlisted equity investments price quotes are not available and fair values may not be reliably measurable using valuation techniques because the range of reasonable
fair value estimates is significant and the probabilities of the various estimates within the range cannot be reasonably assessed. These equity investments are accounted forat cost, and their fair values as reported in the table above equal their carrying amounts. As of 31 December 2014, the aggregate carrying amount of these investments was€ 409 million.
(3) This includes finance lease receivables, which are not assigned to an IAS 39 measurement category, but reported as “other”.
(4) Finance lease liabilities are accounted for in accordance with IAS 17 in a manner that is similar, though not identical in all respects, to amortised-cost accounting under IAS 39.
They are therefore assigned to the category “other”.
(5) The European Governments refundable advances of € 6,528 million are measured at amortised cost. Fair values cannot be reliably measured because their risk sharing natureand the uncertainty of the repayment dates give rise to a broad range of reasonable fair value estimates and make it impossible to reasonably assess the probabilities of thevarious estimates within the range. This may change and reliable fair value measures become available as the related programmes approach the end of production.
(6) This includes credit value adjustments of € -18 million, of which € -7 million is recognised in OCI.
(7) This includes debit value adjustments of € 31 million, of which € 18 million is recognised in OCI.

Fair Value Hierarchy
Fair value of ﬁnancial instruments — The fair value of quoted
investments is based on current market prices. If the market
for ﬁnancial assets is not active, or in the case of unlisted
ﬁnancial instruments, the Group determines fair values byusing generally accepted valuation techniques on the basisof market information available at the end of the reporting
period. Derivative instruments are generally managed on thebasis of the Group’s net exposure to the credit risk of eachparticular counterparty and fair value information is provided
to the Group’s key management personnel on that basis.

For these derivative instruments, the fair value is measured
based on the price that would be received to sell a net longposition, or transfer a net short position, for a particular credit
risk exposure as further described below.
Depending on the extent the inputs used to measure fair values
rely on observable market data, fair value measurements may
be hierarchised according to the following levels of input:■

Level 1: quoted prices (unadjusted) in active markets for
identical assets and liabilities.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 71 l2.

Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

Level 2: inputs other than quoted prices that are observable forthe 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 basedon observable market data – fair values measured basedon Level 3 input rely to a signiﬁcant extent on estimatesderived from the Group’s own data and may require the useof assumptions that are inherently judgemental and involve
various limitations.

■

The fair values disclosed for ﬁnancial instruments accounted forat amortised cost reﬂect Level 2 input. Otherwise, fair values
are determined mostly based on Level 1 and Level 2 input andto a minor extent on Level 3 input.

The following table presents the carrying amounts of the ﬁnancial instruments held at fair value across the three levels of the fairvalue hierarchy as of 31 December 2015 and 2014, respectively:
31 December 2015
(In € million)

Level 1

Level 2

Level 331 December 2014

Total

Level 1

Level 2

Level 3

Total
208

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

828

0

0

828

208

0

0

0

1,234

46

1,280

0

708

2

710

11,474165

0

11,639

7,784

1,388

0

9,172

3,941

2,130

0

6,071

3,563

1,442

0

5,005

16,2433,529

46

19,818

11,555

3,538

2

15,095Derivative instruments

0(10,587)0(10,587)0(5,503)0(5,503)

Other liabilities

0

0

(74)

(74)

0

0

(137)

(137)

0

(10,587)(74)(10,661)

0(5,503)(137)(5,640)

Total
Financial liabilities measured at fair value

Total

The development of ﬁnancial instruments of Level 3 is as follows:
Financial assets(In € million)

Commodity
swap
ageements

Financial liabilities

Other
derivative
instruments

Derivative
instruments

Written put
options on
NCI interests

Earn-outagreements

Otherliabilities

1 January 2014

26

8

34

(129)

(51)

(180)

Total gains or losses in profit or loss

(1)

0

(1)

2

38

40

Settlements

(23)

(8)

(31)

0

3

3
(137)

31 December 2014

2

0

2

(127)

(10)

Total gains or losses in profit or loss

59

0

59

0

0

0

OCI

0

0

0

60

0

60

Settlements

(15)

0

(15)

3

0

3

31 December 2015

46

0

46

(64)

(10)

(74)

The proﬁt of the period impact attributable to Level 3 ﬁnancial
assets and liabilities which are still held by the Group as of
31 December 2015 was a gain of € 46 million. The proﬁt of
the period impact attributable to Level 3 ﬁnancial assets andliabilities which are still held by the Group as of 31 December
2014 was a gain of € 1 million and € 24 million respectively.

Financial Assets Classified as Level 3
The ﬁnancial assets measured at fair value that are classiﬁed
as Level 3 mainly consist of short-term commodity contracts
whose notional amounts vary with the actual volumes of certain
commodity purchases made by the Group in speciﬁc months.

For fair value measurement purposes, the notional amounts,
being the unobservable input, are set with reference to monthly
commodity volumes that management expects to purchase
based on planning forecasts. The fair values are otherwise
determined using observable market data including quoted
interest rates and pricing information obtained from recognised
vendors of market data.
A deviation of 10% of actual monthly volumes purchasedfrom expected monthly volumes purchased would increase or
decrease (depending on whether actual volumes are 10% moreor 10% less than expected volumes) the total Level 3 fair value ofthese short-term commodity contracts by less than € 5 million.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 72 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

Financial Liabilities Classified as Level 3
The ﬁnancial liabilities measured at fair value that are classiﬁed as
Level 3 consist of several written put options on non-controllinginterest (“NCI puts”) of Group subsidiaries. The fair values ofthese NCI puts (i.e. the net present value of their redemption
amount on exercise) are derived from a discounted cash ﬂow
analysis of the latest operating planning ﬁgures of the respective
entities.

from the input perimeters as applied for the impairment test as
disclosed in Note 17 “Intangible assets – Goodwill impairment
tests”. An increase (decrease) of the discount rates by 50 basis
points results in a decrease (increase) of the NCI put values by€ 5 million (€ 11 million). An increase (decrease) in the growth
rates by 50 basis points increases (decreases) the NCI put
values by € 5 million (€ 11 million) respectively.

The fair value measurements are performed on an annual basis
in line with the operative planning cycle. Apart from the detailed
ﬁve-year operating planning ﬁgures, there are two unobservable
inputs that signiﬁcantly affect the values of the NCI puts: the
WACC used to discount the forecasted cash ﬂows and thegrowth rate used to determine the terminal value. WACC andgrowth rates as well as operating planning ﬁgures that wereused for the determination of the Level 3 fair values are derived

Another element of ﬁnancial liabilities measured at fair value
classiﬁed as Level 3 are earn-out payments that have been
agreed with former shareholders of entities acquired by theGroup in business combinations. Fair value measurement isbased on the expectation regarding the achievement of deﬁned
target ﬁgures by the acquired entity or its ability to close identiﬁed
customer contracts.

Financial Assets Designated at Fair Value through Profit or Loss
The following types of financial assets held at 31 December 2015 and 2014, respectively, are designated at fair value throughproﬁt or loss:(In € million)

Nominal amount at
initial recognition as
Fair value as ofof 31 December 2015 31 December 2015

Nominal amount at
initial recognition as of
31 December 2014

Fair value as of
31 December 2014

3,261

Designated at fair value through profit orloss at recognition:■

Money market funds (accumulating)■Foreign currency funds of hedge funds

Total

3,220

3,220

3,261

8

3

8

4

3,228

3,223

3,269

3,265

The Group manages these assets and measures their performance on a fair value basis.
In addition, the Group invests in non-accumulating money market funds, which pay interest on a monthly basis. The fair valueof those funds corresponds to their nominal amount at initial recognition date amounting to € 720 million (2014: € 302 million).

Fair Value Measurement Method
The methods the Group uses to measure fair values are as
follows:

Securities — The fair values of securities reﬂect their quoted
market price at the end of the reporting period.

Equity instruments — The fair values of listed equity instruments
reﬂect quoted market prices. The fair values of unlisted equity
instruments may not be reliably measured because the range ofreasonable fair value estimates is signiﬁcant and the probabilitiesof the various estimates within the range cannot be reasonably
assessed. Those instruments are measured at cost, and theircarrying amounts used as a proxy for fair value.

Cash and cash equivalents include cash in hand, cash inbanks, checks, ﬁxed deposits as well as commercial papers
and money market funds. The carrying amounts reﬂected in theannual accounts are used as reasonable estimates of fair value
because of the relatively short period between the originationof the instrument and its maturity or due date. The fair valueof commercial papers is determined based on Level 2 input
by discounting future cash ﬂows using appropriate interest
rates. The fair values of money market funds are determinedby reference to their quoted market price.

Customer ﬁnancing assets and other loans — The carrying
amounts reﬂected in the annual accounts are used as a proxyfor fair value.
Trade receivables and other receivables — The carrying
amounts reﬂected in the annual accounts are used as reasonableestimates of fair value because of the relatively short period
between the receivables’ origination and their maturity.

Derivatives — The fair values of derivative instruments reﬂect
quoted market prices, where available, but in most cases are
determined using recognised valuation techniques such as
option-pricing models and discounted cash ﬂow models. The
valuation is based on observable market data such as currency
rates, currency forward rates, interest rates and yield curves,

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 73 l2.

Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

commodity forward prices as well as price and rate volatilities
obtained from recognised vendors of market data. Furthermore,to the extent that these instruments are subject to master netting
arrangements and similar agreements and managed on thebasis of net credit exposure, their fair values reﬂect credit anddebit value adjustments based on the net long or net shortposition that the Group has with each counterparty. Except
for certain short-term commodity contracts discussed in theLevel 3 section above, derivative fair values are measured basedon Level 2 input.
Financing liabilities — The fair values disclosed for ﬁnancing
liabilities, other than those of issued bonds and issued
commercial papers, are determined based on Level 2 input

by discounting scheduled or expected cash flows using
appropriate market interest rates. The fair values disclosed
for the issued EMTN and US dollar bonds reﬂect public pricequotations that qualify as Level 1 input. For issued commercial
papers, the carrying amounts reﬂected in the annual accounts
are used as reasonable estimates of fair value because of
the relatively short period between the origination of these
instruments and their maturity.
Trade liabilities and current other ﬁnancial liabilities — For
the same reason, carrying amounts are used as reasonable
fair value approximations for trade liabilities and current otherﬁnancial liabilities.

The following interest rate curves are used in the determination of the fair value in respect of the derivative ﬁnancial instruments
as of 31 December 2015 and 2014:31 December

2015(Interest rate in %)

2014

2015

€

6 months

2014

2015

US$

(0.08)

0.13

1 year

0.14

5 years

0.21

10 years

0.89

2014
£

0.94

0.50

0.85

0.73

0.37

1.12

0.24

1.72

0.82

1.13

1.02

1.77

1.59

0.70

2.18

1.45

2.27

1.99

1.85

35.3 Potential Effect of Set-Off Rights on Recognised Financial Assets and Liabilities
The Group reports all its ﬁnancial assets and ﬁnancial liabilities
on a gross basis. With each derivative counterparty there are
master netting agreements in place providing for the immediateclose-out of all outstanding derivative transactions and paymentof the net termination amount in the event a party to theagreement defaults or another deﬁned termination event occurs.
Furthermore, securities lending transactions are accounted foras collateralised borrowings. As a result, the securities pledged

Derivative instruments(In € million)Grossamounts
recognisedGrossamounts
recognised
set off inthe financial
statements

as collateral continue to be recognised on the balance sheet andthe amount of cash received at the outset of the transaction isseparately recognised as a ﬁnancial liability. The following tables
set out, on a counterparty speciﬁc basis, the potential effect ofmaster netting agreements and collateralised borrowings on
the Group’s ﬁnancial position, separately for ﬁnancial assets
and ﬁnancial liabilities that were subject to such agreements
as of 31 December 2015 and 31 December 2014, respectively:

Net amounts
presented in
the financial
statements

Related amounts not set
off in the statementof financial position
Financial Cash collateral
instruments
received

Net amount

31 December 2015
Financial assets

1,280

0

1,280

(1,280)0

0Financial liabilities

10,5870

10,587(1,280)09,307

31 December 2014
Financial assets

710

0

710

(621)

0

89

Financial liabilities

5,503

0

5,503

(621)

0

4,882

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 74 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

35.4 Notional Amounts of Derivative Financial Instruments
The contract or notional amounts of derivative ﬁnancial instruments shown below do not necessarily represent amounts exchangedby the parties and, thus, are not necessarily a measure for the exposure of the Group through its use of derivatives.
The notional amounts of foreign exchange derivative financial instruments are as follows, speciﬁed by year of expected maturity:
Remaining period

Total

1 year

2 years

3 years

4 years

5 years

6 years

20,395

21,23420,041

14,655

4,086

(367)

(445)

2

79,601

Purchased US-dollar put options

0

0

0

3,536

3,399

441

0

0

7,376

Written US-dollar put options

0

0

0

3,536

3,399

441

0

0

7,376

906

0

0

0

0

0

0

0

906

Net forward sales contracts

19,834

17,852

16,479

9,328

4,556

477

(1,069)(396)

67,061

FX swap contracts

1,274

145

0

0

0

0

0

0

1,419

(In € million)

7 years > 7 years

31 December 2015
Net forward sales contracts
FX options

FX swap contracts
31 December 2014

The notional amounts of interest rate contracts are as follows:
Remaining period
1 year

2 years

3 years

4 years

Interest rate contracts

1,382

36

1,194

Interest rate future contracts

1,032

0

0

Interest rate contracts

833

1,376

Interest rate future contracts

176

0(In € million)

Total

5 years

6 years

7 years > 7 years

1,152

7

864

4

3,232

7,871

0

0

0

0

0

1,032

30

918

853

0

1,070

0

5,080

0

0

0

0

0

0

176

31 December 201531 December 2014

Please also refer to Note 34.3 “Financing liabilities”.

The notional amounts of commodity contracts are as follows:
Remaining period(In € million)

3 years

Total

1 year

2 years

4 years> 4 years

31 December 2015

336

129

23

11

1

500

31 December 2014

319

161

105

20

10

615

The notional amounts of equity swaps are as follows:
Remaining period(In € million)

1 yearTotal

2 years

3 years

4 years> 4 years

31 December 2015

153

76

52

49

19

349

31 December 2014

209

146

75

23

0

453

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 75 l2.

Notes to the IFRS Consolidated Financial Statements
2.7 Capital Structure and Financial Instruments

35.5 Derivative Financial Instruments and Hedge Accounting Disclosure
The development of the foreign exchange rate hedging instruments recognised in AOCI as of 31 December 2015 and 2014 is asfollows:
Equity attributable
to equity ownersof the parent(In € million)

Non-controllinginterests

Total

1 January 2014

1,101

(2)

1,099

Unrealised gains and losses from valuations, net of tax(4,658)(19)(4,677)

Transferred to profit or loss for the period, net of tax

247

(1)

246

Changes in fair values of hedging instruments recorded in
AOCI, net of tax(4,411)(20)(4,431)31 December 2014 / 1 January 2015

(3,310)(22)(3,332)

Unrealised gains and losses from valuations, net of tax(2,842)(54)(2,896)

Transferred to profit or loss for the period, net of tax

(712)

27

(685)

Changes in fair values of hedging instruments recorded
in AOCI, net of tax(3,554)(27)(3,581)31 December 2015

(6,864)(49)(6,913)In the year 2015, an amount of € 3,833 million (in 2014: € -358 million) was reclassiﬁed from equity mainly to revenues resulting
from matured cash ﬂow hedges. No material ineffectiveness arising from hedging relationship has been determined.
In addition, a gain of € 20 million was recognised in the proﬁt of the period in 2015 (€ 35 million in 2014) on derivatives that were
designated as hedging instruments in a fair value hedge, and a loss of € -18 million (in 2014: € -34 million) attributable to the hedged
risk was recognised in the proﬁt of the period on the corresponding hedged items. Corresponding with its carrying amounts, thefair values of each type of derivative ﬁnancial instruments as of 31 December 2015 and 2014, respectively,are as follows:
31 December
2015

2014

AssetsLiabilities

AssetsLiabilities

Foreign currency contracts – cash flow hedges

832(10,017)327(4,847)

Foreign currency contracts – not designated in a hedge relationship(103)(In € million)

182

(82)

154

Interest rate contracts – cash flow hedges

0

(40)

0

(15)

Interest rate contracts – fair value hedges

101

(8)

117

(26)

Interest rate contracts – not designated in a hedge relationship

80

(87)

105

(141)

Commodity contracts – cash flow hedges

0

(57)

0

(40)

Commodity contracts – not designated in a hedge relationship

46

(73)

2

(64)

Equity swaps – cash flow hedges

30

(7)

0

(94)

Embedded foreign currency derivatives – cash flow hedges

0

(31)

0

(111)

Embedded foreign currency derivatives – not designatedin a hedge relationship

9

(185)

5

(62)

1,280

(10,587)710(5,503)Total

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 76 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.8 Other Notes

35.6 Net Gains or Net Losses
The Group’s net gains or net losses recognised in proﬁt or loss in 2015 and 2014, respectively, are as follows:(In € million)

2015

2014
(308)

Financial assets or financial liabilities at fair value through profit or loss:
Held for trading(178)

Designated on initial recognition

166

91

Available-for-sale financial assets

183

314

Loans and receivables(1)

(182)

(163)

Financial liabilities measured at amortised cost

(192)

0

(1) Contain among others impairment losses.

Interest income from ﬁnancial assets or ﬁnancial liabilities through proﬁt or loss is included in net gains or losses.

35.7 Impairment Losses
The following impairment losses on ﬁnancial assets are recognised in proﬁt or loss in 2015 and 2014, respectively:
2015(In € million)

2014

Other investments and other long-term financial assets
Equity instruments

(49)

(14)

Customer financings

(25)

(16)

Other loans

(12)

(17)

Trade receivables

(25)

(28)

Total

(111)

(75)

2.8 Other Notes
36. Litigation and Claims
Litigation and claims — Various legal actions, governmental
investigations, proceedings and other claims are pending or
may be instituted or asserted in the future against the Group.
Litigation is subject to many uncertainties, and the outcome ofindividual matters is not predictable with certainty. The Group
believes that it has made adequate provisions to cover current
or contemplated litigation risks. It is reasonably possible that theﬁnal resolution of some of these matters may require the Groupto make expenditures, in excess of established reserves, over an
extended period of time and in a range of amounts that cannot
be reasonably estimated. The term “reasonably possible” isused herein to mean that the chance of a future transaction or
event occurring is more than remote but less than likely.

Airbus Group is involved from time to time in various legal andarbitration proceedings in the ordinary course of its business,the most signiﬁcant of which are described below. Other thanas described below, Airbus Group 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 Group SE’s or the Group’s ﬁnancial position or
proﬁtability.
If the Group concludes that the disclosures relative to contingent
liabilities can be expected to prejudice seriously its position ina dispute with other parties, the Group limits its disclosures tothe nature of the dispute.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 77 l2.

Notes to the IFRS Consolidated Financial Statements
2.8 Other Notes

WTO

Euroﬁghter Austria

Although Airbus Group is not a party, Airbus Group 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. On 19 December
2014, the European Union requested WTO consultations on theextension until the end of 2040 of subsidies originally grantedby the State of Washington to Boeing and other US aerospaceﬁrms until 2024.

In March 2012, the German public prosecutor, following a request
for assistance by the Austrian public prosecutor, launcheda criminal investigation into alleged bribery, tax evasion andbreach of trust by current and former employees of EADS
Deutschland GmbH (renamed on 1 July 2014 Airbus Defence
and Space GmbH) and Euroﬁghter Jagdﬂugzeug GmbH as well
as by third parties relating to the sale of Euroﬁghter aircraft toAustria in 2003. After having been informed of the investigationin 2012, Airbus Group retained the law ﬁrm Clifford Chance toconduct a fact ﬁnding independent review. Upon concluding
its review, Clifford Chance presented its fact ﬁnding report toAirbus Group in December 2013. Airbus Group provided thereport to the public prosecutors in Germany. Airbus Group iscooperating fully with the authorities.

On 1 June 2011, the WTO adopted the Appellate Body’s ﬁnal
report in the case brought by the US assessing funding toAirbus from European governments. On 1 December 2011, theEU informed the WTO that it had taken appropriate steps tobring its measures fully into conformity with its WTO obligations,and to comply with the WTO’s recommendations and rulings.
Because the US did not agree, the matter is now under WTO
panel 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 panel review pursuant
to WTO rules.
Exact timing of further steps in the WTO litigation process issubject to further rulings and to negotiations between the US
and the EU. Unless a settlement, which is currently not underdiscussion, is reached between the parties, the litigation is
expected to continue for several years.

GPT
Prompted by a whistleblower’s allegations, Airbus Group
conducted internal audits and retained PricewaterhouseCoopers(“PwC”) to conduct an independent review relating to GPTSpecial Project Management Ltd. (“GPT”), a subsidiary that
Airbus Group acquired in 2007. The allegations called into
question a service contract entered into by GPT prior to its
acquisition by Airbus Group, relating to activities conductedby GPT in Saudi Arabia. PwC’s report was provided by
Airbus Group 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 Group is cooperating fully with the authorities.

Other Investigations
Following the announcement of investigations by the Romanianauthorities relating to the border surveillance project in Romania
in mid-October 2014, Airbus Group confirms that Airbus
Defence and Space GmbH has been informed that the German
prosecution ofﬁce is also investigating potential irregularities inrelation to this project, a project in Saudi Arabia and a projectof Tesat-Spacecom GmbH & Co. KG. The public prosecutor
in Germany has launched administrative proceedings in
the context of those investigations against Airbus Defence
and Space GmbH and Tesat-Spacecom GmbH & Co. KG.
Airbus Group is cooperating fully with the authorities.
Public prosecutors in Greece and Germany launchedinvestigations into a current employee and former Managing
Directors and employees of Atlas Elektronik GmbH, a jointcompany of ThyssenKrupp and Airbus Group, on suspicion ofbribing foreign ofﬁcials and tax evasion. The public prosecutor
in Germany has launched an administrative proceeding
for alleged organisational and supervisory shortfalls. The
authorities in Greece have launched civil claims against Atlas
Elektronik GmbH. In 2015 the public prosecutor´s ofﬁce inBremen launched another investigation into current and former
employees and Managing Directors of Atlas Elektronik GmbH on
suspicion of bribery and tax evasion in connection with projects
in Turkey. With the support of its shareholders, the Company iscooperating fully with the authorities and in consultation withthe public prosecutor is assisting the further clariﬁcation of thematter through its own internal investigation.

Commercial Disputes
In May 2013, the Group has been notiﬁed of a commercial
dispute following the decision taken by the Group to cease apartnership for sales support activities in some local markets
abroad. The Group believes it has solid grounds to legally object
to the alleged breach of a commercial agreement. However,the consequences of this dispute and the outcome of the

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 78 l

Financial Statements 2015
Notes to the IFRS Consolidated Financial Statements
2.8 Other Notes

proceedings cannot be fully assessed at this stage. The
arbitration is not expected to be completed before the endof 2016.
In the course of another commercial dispute, the Group received
a statement of claim alleging liability for refunding part of thepurchase price of a large contract which the customer claims
it was not obliged to pay. The Group believes that this claim,
which goes back many years, should be dismissed in principle.
The dispute is currently the subject of arbitration.
In light of regulatory investigations and commercial disputes,
including those discussed above, the Group has determined
to enhance certain of its policies, procedures and practices,

including Ethics and Compliance. The Group is accordingly
in the process of revising and implementing improved
procedures, including those with respect to its engagementof consultants and other third parties, in particular in respectof sales support activities, and is conducting enhanced due
diligence as a pre-condition for future or continued engagement
and corresponding payment. The Group believes that theseenhancements to its controls and practices best position it for
the future, particularly in light of advancements in regulatory
standards. The Group cannot exclude that these changes leadto additional commercial disputes or other consequences in
the future.

37. Auditor Fees

With reference to Section 2:382a (1) and (2) of the Netherlands Civil Code, the following fees for the ﬁnancial year 2015 have been
charged by KPMG to the Company, its subsidiaries and other consolidated entities:
2015

2014

In € thousand

In %In € thousand

In %

Audit
Audit process, certification and examination ofindividual and consolidated accounts

6,008

47.0

5,812

66.5

Additional tasks(1)

6,160

48.2

2,344

26.9

Sub-total

12,168

95.2

8,156

93.4

Legal, tax, employment

608

4.8

573

6.6

Sub-total

608

4.8

573

6.6

12,776

100.0

8,729

100.0

Other services as relevant

Total(1) Mainly transaction related work.

In 2015 and 2014, the Airbus Group was audited by KPMG only. Other audit ﬁrms have audit fees related to audit process,certiﬁcation and examination of individual and consolidated accounts of € 6 million in 2015 (2014: € 6 million).

38. Events after the Reporting Date
There are no signiﬁcant events after the reporting date.
These Consolidated Financial Statements have been authorised for issuance by the Board of Directors on 23 February 2016.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 79 l

2.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 80 l

MBDA Group

37.5%*

95%

Vector Aerospace
Holding SAS(France)

Astrium Services
UK Limited(UK)

Airbus Operations
Limited(UK)

AirbusOperations, S.L.
(Spain)Paradigm
Services Limited(UK)

Paradigm Secure
Communications
Limited(UK)

Infoterra Limited(UK)

Airbus Helicopters
España, S.A.
(Spain)Airbus Defence
and Space
Limited(UK)

Airbus Operations
GmbH(Germany)

Airbus Helicopters
UK Limited(UK)

Airbus Helicopters
DeutschlandGmbH(Germany)

CRI, S.A.
(Spain)Airbus(France)

Astrium Services
GmbH(Germany)

Airbus Helicopters(France)5%

Airbus Operations
SAS(France)

Airbus DS Holding
France SAS(France)

Airbus Helicopters
Holding(France)

EADS Casa
Espacio, S.L.
(Spain)Airbus DS Holding
SAS(France)

Airbus DS
Holdings B.V.
(The Netherlands)

Astrium
España, S.L.
(Spain)

5.58%

EADS CASAFRANCE(France)2.43%

Airbus Defence
and Space SAS(France)94.42%EADS CASAHOLDING(France)

Airbus Defence
and Space, S.A.
(Spain)97.57%

Airbus DS GmbH
(Germany)

66.08%

Airbus Group, Inc.
(USA)

Subsidiaries held with no indication of ownership percentage are 100% owned.
Legal forms are indicated for information purposes and are not always part of the legal name.

*Airbus Group owns indirectly 50% of ATR GIE and 37.50% of MBDA Group.

MBDA Group

Airbus Group North America

Airbus Helicopters

Airbus Defence and Space

AirbusPremium Aerotec
GmbH(Germany)

ATR GIE(France)

50%*

65%

Airbus Defence
and Space GmbH
(Germany)

15.80%

3.69%

18.12%

Elbe
FlugzeugwerkeGmbH(Germany)

Airbus DS SAS(France)

96.31%

Airbus Group SAS(France)

Stelia Aerospace(France)

Airbus Group
Limited(UK)

DADC Luft-und
Raumfahrt
Beteiligungs GmbH
(Germany)(The Netherlands)

AIRBUS GROUP SE

Notes to the IFRS Consolidated Financial Statements
2.9 Appendix “Simpliﬁed Group Structure Chart”

2.9 Appendix “Simpliﬁed Group Structure Chart”

Financial Statements 2015

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 81 l

Chapter

3.
AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 82 l

Financial Statements 2015

Airbus Group SE
IFRS Company Financial Statements
IFRS Company Income Statements
for the years ended 31 December 2015 and 201484

IFRS Company Statements of Comprehensive
Income for the years ended 31 December 2015
and 2014

84

IFRS Company Statements of Financial Position
at 31 December 2015 and 201485

IFRS Company Statements of Cash Flowsfor the years ended 31 December 2015 and 201486

IFRS Company Statements of Changes in Equity
for the years ended 31 December 2015 and 201487

3.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 83 l

Airbus Group SE — IFRS Company Financial Statements

IFRS Company Income Statements
for the years ended 31 December 2015 and 2014

Note

(In € million)

2015

2014

Operating income

476

457

Operating expenses

(634)

(561)

Income from investments

9760

Loss/Impairment of investments

(5)

(45)

(154)

611

Total operating result

4Interest income

225

219

Interest expense

(133)

(132)

Other financial result
Total financial result

5

Profit before income taxes
6

127

(119)

219

(32)

65

579

(11)

44

54

623

2015

2014

54

623

Net change in fair value of available-for-sale financial assets

26

84

Net change in fair value of cash flow hedges

00Other comprehensive income, net of tax

26

84

Total comprehensive income of the period

80

707

Income taxes

Profit for the period

IFRS Company Statements of Comprehensive Income
for the years ended 31 December 2015 and 2014

(In € million)

Profit for the period
Other comprehensive income
Items that will be reclassified to profit or loss:

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 84 l

Financial Statements 2015
Airbus Group SE — IFRS Company Financial Statements

IFRS Company Statements of Financial Position
at 31 December 2015 and 2014

Note

2015

2014

Adjusted opening 2014

Investments in subsidiaries and associates

7

14,521

14,243

14,379Long-term financial assets

8

3,594

3,128

3,054

Non-current other financial assets

8

7,979

3,321

2,333

5

5

3

15

19

0

(In € million)

AssetsNon-current assets

Non-current other assets
Deferred tax assets

6

Non-current securities

12

9,593

5,809

4,179

35,707

26,52523,948Current assets
Trade receivables

11

9

146

Current other financial assets

8

4,431

2,502

1,338

Current accounts Group companies

8

8,353

8,856

9,247

149

130

168

Current securities

12

1,683

3,077

2,430

Cash and cash equivalents

12

Current other assets

Total assets

6,515

6,200

6,126

21,142

20,774

19,45556,84947,29943,403Equity and liabilities
Stockholders’ equity

11

Issued and paid up capital

785

785

783

Share premium

3,484

4,500

5,049

Retained earnings

4,939

4,237

4,139

Accumulated other comprehensive income

211

185

101

Treasury shares

(303)

(8)

(50)

Result of the year

54

623

31

9,170

10,322

10,053

Non-current liabilities
Long-term financing liabilities

12

5,394

5,551

3,514

Non-current financial liabilities

8

7,960

3,405

2,360

Deferred tax liabilities

6

0

0

5

13,354

8,956

5,879

Current liabilities
Short-term financing liabilities

12

1,823

0

914

Current accounts Group companies

828,41525,64925,593Current financial liabilities

8

3,991

2,257

826

Current other liabilities

Total equity and liabilities

96

115

138

34,32528,021

27,471

56,84947,29943,403

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 85 l

3.

Airbus Group SE — IFRS Company Financial Statements

IFRS Company Statements of Cash Flowsfor the years ended 31 December 2015 and 2014

Note

(In € million)

Profit for the period (Net income)

2015

2014

54

623
(219)

Adjustments to reconcile profit for the period to cash provided by operating activities:
Interest income(225)Interest expense

133

132

Interest received

206

257

Interest paid

(117)

(151)

Income tax received

30

Depreciation and amortisation

5

44

(240)

(83)

11

(44)

Results on disposals of non-current assets

0

(571)

Change in current and non-current provisions

2(7)

Change in other operating assets and liabilities:

(3)

157
137

Valuation adjustments
Deferred tax expense (income)■Trade receivables(2)■

Other assets and liabilities

(1)

20

(171)

138

(546)

(116)

Cash (used for) provided by operating activities
Investments:■

Acquisitions of subsidiaries, joint ventures, businesses and non-controlling interests■

Proceeds from disposals of subsidiaries■

Payments for long-term financial assets

■

■

7

0

708

(670)

(696)

Proceeds from disposals of associates, joint ventures,
other investments and other long-term financial assets

44

368

Repayments of other long-term financial assets

127

801

Payments for investments in securities(6,877)(5,340)

Proceeds from disposals of securities

4,592

3,307

Cash used for investing activities(3,330)(968)

Draw-down in financing liabilities

788

2,010

Repayment of financing liabilities(136)(1,140)Change in current accounts Group companies

4,056

262

Cash distribution to Airbus Group SE shareholders

(945)

(587)

Changes in capital

171

52

0

102

Change in treasury shares
Share buyback

(264)

0

3,670

699

Effect of foreign exchange rate changes on cash and cash equivalents

146

205

Net increase in cash and cash equivalents

315

74

6,200

6,126

6,515

6,200

Cash provided by financing activities

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 86 l

12

Financial Statements 2015
Airbus Group SE — IFRS Company Financial Statements

IFRS Company Statements of Changes in Equity
for the years ended 31 December 2015 and 2014

Accumulated othercomprehensive income

Balance at 1 January 2014

Capital
stock

Share
premium

Retainedearnings

Available­
for-salefinancialassetsCash flow
hedgesTreasurysharesTotalequity

783

5,049

4,170

110

(9)

(50)

10,053

Profit for the period

0

0

623

0

0

0

623

Other comprehensive income

0

0

0

85

(1)

0

84

Total comprehensive income of the period

0

0

623

85

(1)

0

707

Capital increase

2

50

0

0

0

0

52

Share-based payments (IFRS 2)

0

0

(5)

0

0

0

(5)

Cash distribution to Airbus Group SE shareholders

0

(587)

0

0

0

0

(587)

Change in treasury shares

0

0

0

0

0

(12)

(12)

Sale/Cancellation of treasury shares

0

(12)

72

0

0

54

114

785

4,500

4,860

195

(10)

(8)

10,322

Profit for the period

0

0

54

0

0

0

54

Other comprehensive income

0

0

0

26

0

0

26

Total comprehensive income of the period

0

0

54

26

0

0

80

Capital increase

3

115

0

0

0

0

118

Balance at 31 December 2014

Share-based payments (IFRS 2)

0

0

29

0

0

0

29

Cash distribution to Airbus Group SE shareholders

0

(945)

0

0

0

0

(945)

Equity component convertible bond

0

0

53

0

0

0

53

Change in treasury shares

0

0

(3)

0

0

(484)

(487)

Cancellation of treasury shares

(3)

(186)

0

0

0

189

0

785

3,484

4,993

221

(10)

(303)

9,170

Balance at 31 December 2015

3.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 87 l

Chapter

4.
AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 88 l

Financial Statements 2015

Notes to the
IFRS Company Financial Statements
4.1 Basis of Presentation

91

4.2 Company Performance94

4.3 Operational Assets and Liabilities

96

4.4 Employees

99

4.5 Capital Structure and Financial Instruments

99

4.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 89 l

Notes to the IFRS Company Financial Statements

CONTENTS

4.1 Basis of Presentation

91

1.

The Company

91

2.

Signiﬁcant Accounting Policies

91

3.

Related Party Transactions

93

4.2 Company Performance94

4.

Total Operating Result

94

5.

Total Financial Result

94

6.

Income Tax

95

4.3 Operational Assets and Liabilities

96

7.

Investments in Subsidiaries, Associates
and Participations

96

8.

Financial Assets and Liabilities

98

9.

Commitments and Contingencies

99

4.4 Employees

99

10.

99

Number of Employees

4.5 Capital Structure and Financial
Instruments

99

11.

Total Equity

99

12.

Cash, Securities and Financing Liabilities

101

13.

Information about Financial Instruments

103

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 90 l

Financial Statements 2015
Notes to the IFRS Company Financial Statements

4.1 Basis of Presentation
1.

The Company

The Company’s principal activity is acting as a holding andmanagement company for the subsidiaries of Airbus GroupSE, the “Company”, a listed company in the form of a European
Company (Societas Europaea), legally seated in Amsterdam(current registered ofﬁce at Mendelweg 30, 2333 CS Leiden,
The Netherlands). On 28 May 2015, the legal form of theCompany has changed from a Dutch public limited company(formerly Airbus Group N.V.) to a European company (SE) and2.

is consistently subject to the laws of the Dutch Civil Code. The
Company has its listings at the European Stock Exchanges
in Paris, Frankfurt am Main, Madrid, Barcelona, Valencia andBilbao. The IFRS Financial Statements were authorised for issue
by the Company’s Board of Directors on 23 February 2016.
They are prepared and reported in euro (“€”) and all values arerounded to the nearest million appropriately.

Signiﬁcant Accounting Policies

Change of Accounting Framework
as of 1 January 2015
Until end of ﬁnancial year 2014, the Company made use of theoption provided in section 2:362 (8) of the Dutch Civil Code, whichallows that the principles for the recognition and measurementof assets and liabilities and determination of the result of theCompany Financial Statements are the same as those applied
for the Consolidated EU-IFRS Financial Statements.
As of 1 January 2015, the Company changed the basis for
preparing the Company Financial Statements to IFRS as
adopted by the European Union being applicable for Company
Financial Statements (a.o. IAS 27 “Consolidated and Separate
Financial Statements”), as permitted by section 2:362 (8) of the
Dutch Civil Code.
As an internationally operating Company, Airbus Group SE
has global institutional and private shareholders as well asother stakeholders who are used to IFRS as internationallyaccepted and applied accounting standards, rather than toDutch GAAP requirements under the formerly applied option.
Airbus’ management considers that the recognition of its

investments at cost less impairment in the Company Financial
Statements is a more appropriate approach to provide a fairinsight into the Company’s Financial Position with regards tothe determination of distributable equity and provides additional
insight relating to the dividend upstream within the Group andtherefore complements the Airbus Group’s IFRS Consolidated
Financial Statements.
As a result of the change in accounting framework in the
Company Financial Statements, the following main differences
can be identiﬁed:
subsidiaries will now be measured at historic cost less
impairment instead of net asset value;■in the statement of income, dividend income is recognised
instead of results from investments in accordance with theequity method; and■back-to-back hedges with subsidiaries are no longer
presented on a net basis in the statement of ﬁnancial position.
■

The comparative ﬁgures have been adjusted accordingly asfrom 1 January 2014 (transition date).

Reconciliation from Previous GAAP to EU-IFRS
The overview below presents the impact of the change in accounting basis from Dutch GAAP into EU-IFRS shareholders’ equity
in the Company ﬁnancial statements as per 1 January 2014 and 31 December 2014:31 December 2014

1 January 2014

Previous GAAP

7,061

10,864

Restatement of investments from net asset value to EU-IFRS

3,047(1,068)

Restatement of investments at historical cost

1,487

1,487

Impairment of investments and intercompany financial assets(1,273)(1,230)EU-IFRS

10,322

10,053(In € million)

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 91 l

4.

Notes to the IFRS Company Financial Statements

For purposes of an impairment test as of 1 January 2014,
management assessed the overall recoverability of its
investments and intercompany loans following the principles of
IFRS. The impairment test according to IFRS was performed byusing the discounted cash ﬂow method (discount rate: pre-tax
weighted average cost of capital (WACC) of 8.7%) considering
assumptions of the operative planning. Its relevant components
are the country speciﬁc inﬂation and interest rates as well as anincrease of future labour expenses at a yearly average rate of 2%.

For further details regarding the methods applied for impairment
testing see also Note 7 “Investments in subsidiaries, associates
and participations” of the Company Financial Statements. As aresult of the test an impairment of € 1,230 million was recorded in
the opening balance sheet as of 1 January 2014. The impairment
consists of € 780 million related to investments and € 450 million
in connection with intercompany loans. As at year-end 2014,
intercompany loans were subject to an additional impairment
in the amount of € 43 million mainly resulting from FX impacts.

Furthermore we provide a reconciliation of the Profit for the period from Dutch GAAP into EU-IFRS in the Company ﬁnancial
statements for 2014:(In € million)

2014

Previous GAAP

2,343

Income from investments according to Dutch GAAP

(2,412)

Income from investments according to EU-IFRS

758

Impairment of intercompany financial assets according to EU-IFRS(43)

Other valuation differences(23)

EU-IFRS

623

Basis of preparation — The Company’s Financial Statements
are prepared in accordance with International Financial
Reporting Standards (“IFRS”), issued by the International
Accounting Standards Board (“IASB”) as endorsed by theEuropean Union (“EU”) and with Part 9 of Book 2 of the Dutch
Civil Code. When applying IFRS in the Company Financial
Statements, Airbus Group SE applied the principles of
IFRS 1 “First-time adoption of international ﬁnancial reporting
standards”. According to IFRS 1 a company applying for ﬁrst
time IFRS 1 shall develop accounting policies based on thestandards and related interpretations which are effective at thereporting date of its ﬁrst annual EU-IFRS Financial Statements(31 December 2015). IFRS 1 also requires that those policies beapplied as of the date of transition to EU-IFRS (1 January 2014)
and throughout all periods presented in the ﬁrst EU-IFRS
Financial Statements.
In the Company Financial Statements of Airbus Group SE,
unless otherwise disclosed, the same accounting principles
have been applied as set out in the Notes to the Consolidated
Financial Statements, except for the valuation of the investments
as presented under investments in subsidiaries and associates
in the Company Financial Statements. These policies have been
consistently applied to all years presented. In adopting IFRS
for the ﬁrst time, the Company has not exercised the right ofapplying optional exemptions which are granted to ﬁrst-time
IFRS adopters in the conversion from Dutch GAAP to EU-IFRS.
In the Company Financial Statements, the investments in
subsidiaries and associates are recorded at acquisition
cost less impairments, whereas in prior years, investments
in Group companies were stated at net asset value. As aconsequence, the determination of the results in the Company

Financial Statements changed compared to previous years.
In the Company Statement of Income, dividend received frominvestments is recorded as dividend income.
Due to this application, the Company equity and net result
are not equal to the consolidated equity and net result. A
reconciliation of the total shareholders’ equity and proﬁt forthe period is presented in Note 11 “Total equity” to the Company
Financial Statements.
The Company Financial Statements have been prepared on ahistorical cost basis, unless otherwise indicated.
Regarding the application of new, revised or amended IFRS
standards issued but not yet applied please refer to Note 2“Signiﬁcant accounting policies” of the Group’s Consolidated
Financial Statements. Further information about Share-based
payments and Employee Stock Ownership Plans (ESOP) ispresented in Note 30 and information about Remuneration ispresented in Note 31 of the Consolidated Financial Statements.
The information with regard to Capital Management is disclosed
in Note 33, further information about Litigation and claims refers
to Note 36 and Events after the reporting date are disclosed
in Note 38 of the Group’s Consolidated Financial Statements.
Unless reference is made to the accounting policies describedin the Consolidated Financial Statements, the main accounting
policies applied in the preparation of these Company Financial
Statements are described in each accounting area. These
accounting policies have been consistently applied to all
ﬁnancial years presented, unless otherwise stated.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 92 l

Financial Statements 2015
Notes to the IFRS Company Financial Statements

Use of Estimates and Judgements
The preparation of the Company Financial Statements inconformity with EU-IFRS requires the use of estimates andassumptions. In preparing those ﬁnancial statements, themanagement exercises its best judgement based upon its
experience and the circumstances prevailing at that time. The
estimates and assumptions are based on available informationand conditions at the end of the ﬁnancial period presented and3.

are reviewed on an ongoing basis. Actual results could differ
from these estimates.
Key accounting estimates and judgements affecting theassessment and measurement of impairment are includedin Note 7 “Investments in subsidiaries, associates andparticipations” of the Company Financial Statements.

Related Party Transactions

Key Management Personnel
The details regarding the compensation of key management
personnel are described in Note 8 “Related party transactions”
of the Consolidated Financial Statements.

Intercompany Transactions

SE is common practice. In its responsibility as holding
company to manage its subsidiaries and to assist the businessactivities conducted by companies of the Airbus Group andits subsidiaries, Airbus Group SE applies transfer prices for
its business activities in conformity with market levels and inaccordance with national and international tax requirements(arm’s length principle).

A comprehensive exchange of internal services between thesubsidiaries of a multinational corporation like Airbus GroupThe following table discloses the related party intercompany transactions in 2015 and 2014:
Transactions
with subsidiaries
2015

Transactions
with associates
2015

Transactions
with subsidiaries
2014

Transactions
with associates
2014

Rendering of services, dividend income
and interest income

560

62

754

39

Purchases of services, investment charge
and interest expenses

(724)

(4)

(649)

(4)

Intercompany receivables due asof 31 December

12,40018

12,741

18

Intercompany payables due asof 31 December(32,414)(503)(29,041)(521)

Hedge relationships receivable asof 31 December

10,482

0

4,943

0

Hedge relationships payable asof 31 December(1,383)

0

(542)

0

(In € million)

For further information about granted guarantees to subsidiaries please refer to Note 9 “Commitments and contingencies” of theCompany Financial Statements.

4.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 93 l

Notes to the IFRS Company Financial Statements

4.2 Company Performance4.

Total Operating Result

2015

2014

Corporate services rendered to Group companies

476

457

(In € million)

Operating income
Operating expenses

(634)

(561)

Service fees charged by Group companies

(581)

(519)

Administrative expenses

(53)

(42)

Income from investments

9760

Dividends received from Group companies

9

189

Result on sale of investments

0571

Loss/Impairment of financial assets

(5)

(45)

Book loss on investments(5)0

Impairment of intercompany financial assets

0

(43)

Impairment of investments

0(2)

Total operating result

(154)

611

2015

2014

5.

Total Financial Result(In € million)

Interest result(1)9287Interest income from available-for-sale securities

93

85

Others(1)

2

Other financial result

127

(119)

Equity instruments

159

(101)

Interest rate hedging

(11)

(7)

Financing costs

(9)

(7)

FX revaluation

(12)

(4)

Total financial result

219

(32)

(1) In 2015, the total interest income amounts to € 225 million (in 2014: € 219 million) for financial assets which are not measured at fair value through profit or loss. For financial
liabilities which are not measured at fair value through profit or loss € -133 million (in 2014: € -132 million) are recognised as total interest expenses. Both amounts are calculated
by using the effective interest method.

The Company is acting as a ﬁnancial market agent on behalf of its subsidiaries, therefore the fair value changes of derivatives
are reported on a net basis.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 94 l

Financial Statements 2015
Notes to the IFRS Company Financial Statements

6.

Income Tax

The Company is tax registered in the Netherlands. The Company
is heading a ﬁscal unity, which also includes Airbus Group
Finance B.V., Airbus DS Holdings B.V. and Airbus Defence andSpace Netherlands B.V. and therefore the Company is severally
and jointly liable for income tax liabilities of the ﬁscal unity as
a whole.
Income taxes — The tax expense for the year comprises
deferred tax. Tax is recognised in the statement of income,
except to the extent that it relates to items recognised directlyin other comprehensive income.

The amount of income tax included in the Statement of Income
is determined in accordance with the rules established by the
tax authorities in the Netherlands, based on which income taxes
are payable or recoverable.
Deferred tax assets and/or liabilities, arising from temporary
differences between the carrying amounts of assets andliabilities and the tax base of assets and liabilities, are calculatedusing the substantively enacted tax rates expected to apply
when they are realised or settled. Deferred tax assets arerecognised if it is probable that they will be realised.

The expense for income taxes is comprised of the following:
2015(In € million)

Current tax expense

2014

0

0

Deferred tax (expense) income

(11)

44

Total

(11)

44

The following table shows reconciliation from the theoretical income tax expense using the Dutch corporate tax rate to the reportedtax (expense) income:2015(In € million)

2014

Profit before income taxes

65

579

* Corporate income tax rate

25.0%

25.0%

Expected expense for income taxes

(16)

(145)

Non-taxable income from investments

1

179

Income from other companies within the fiscal unity

5

11

Other

(1)

(1)

(11)

44

Reported tax (expense) income

The ﬁrst tranche of tax loss carry forwards (€ 20 million) will expire by the end of 2023.
Deferred income taxes as of 31 December 2015 are related to the following assets and liabilities:

1 January 2015

Other movements

Movement
throughincomestatement

31 December 2015

Deferredtax benefit(expense)

Deferredt ax
assetsDeferredt ax
liabilities

Deferredtax
assetsDeferredtax
liabilities

OCI

OthersSecurities

0

(31)

10

0

0

0

(21)

Financial instruments

27

0

0

0

(30)

0

(3)

Net operating loss and tax loss carryforwards

39

0(In € million)

23

0

0

(3)

19

Deferred tax assets (liabilities)
before offsetting

50

(31)

10

(3)

(11)

39

(24)

Set-off

(31)

31

0

0

0

(24)

24

Net deferred tax assets (liabilities)

19

0

10

(3)

(11)

15

0

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 95 l

4.

Notes to the IFRS Company Financial Statements

Deferred income taxes as of 31 December 2014 are related to the following assets and liabilities:

1 January 2014

Other
movements

Movement
throughincomestatement

31 December 2014

Deferredtax benefit(expense)

Deferredtax
assetsDeferredtax
liabilities(In € million)

Deferredtax
assetsDeferredtax
liabilities

OCI

Securities

0

(11)

(20)

0

0

(31)

Financial instruments

3

0

0

24

27

0

Net operating loss and tax loss carry forwards

3

0

0

20

23

0

Deferred tax assets (liabilities) before offsetting

6

(11)

(20)

44

50

(31)

Set-off

(6)

6

0

0

(31)

31

Net deferred tax assets (liabilities)

0

(5)

(20)

44

19

0

Details of deferred taxes recognised cumulatively in equity are as follows:(In € million)

2015

2014

(21)

(31)

Available-for-sale investments
Cash flow hedges

Total

3

3

(18)

(28)

4.3 Operational Assets and Liabilities
7.

Investments in Subsidiaries, Associates and Participations(In € million)

Balance at 1 January 2014

Subsidiaries

Associates

Participations

Total

14,16465

150

14,379Additions

109

0

0

109

Disposals / redemptions

(220)

(42)

0

(262)

Impairments

0

(2)

0

(2)

Share-based payments (IFRS 2)

(5)

0

0

(5)

Fair value changes through equity

0

0

24

24

14,04821

174

14,243

Additions

Balance at 31 December 2014

196

0

0

196

Book loss on investments

(5)

0

0

(5)

Share-based payments (IFRS 2)

29

0

0

29

Fair value changes through equity

0

0

58

58

14,26821

232

14,521

Balance at 31 December 2015

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 96 l

Financial Statements 2015
Notes to the IFRS Company Financial Statements

Investments in Subsidiaries, AssociatedCompanies and Participations
Investments in subsidiaries and associated companies are statedat cost, less impairment. Dividend income from the Company’s
subsidiaries and associated companies is recognised when theright to receive payment is established.
Available-for-sale participations are stated at fair value withchanges in fair value recognised in other comprehensive income.
For the purpose of impairment testing all consolidated
subsidiaries are allocated to Cash Generating Units (“CGU”) ina way they are monitored for internal management purposes.
At each balance sheet date, the Company reviews whether
there is an indication that a CGU to which its investments in
subsidiaries and associated companies belong to are impaired.
An indication for impairment of the investments in subsidiaries
and associated companies may include, respectively,
management’s downward adjustment of the strategic plan ora signiﬁcant decrease in the share price of a publicly listedcompany. Further indications for impairment of its investments
may include other areas where observable data indicates that
there is a measurable decrease in the estimated future cash
ﬂows. These determinations require signiﬁcant judgement. In
making this judgement, management evaluates, among otherfactors, the ﬁnancial performance of and business outlook for
its investments, including factors such as industry and sector
performance, changes in technology and operational andﬁnancing cash ﬂow.
If any indication for impairment exists, the recoverable amountof the investments is estimated in order to determine the extent,
if any, of the impairment loss. An investment is impaired if therecoverable amount is lower than the carrying value. The
recoverable amount is deﬁned as the higher of an investment’s
fair value less costs to sell and its value in use.
The determination of the investment’s value in use is basedon calculations using pre-tax cash ﬂow projections based on
ﬁnancial budgets approved by management covering a ﬁve-year
period. Cash ﬂows beyond the ﬁve-year period are extrapolatedusing estimated growth rates. The discounted cash ﬂow method
is used to determine the recoverable amount of a CGU to which
its investments in subsidiaries and associated companies
belongs to. The discounted cash ﬂow method is particularly
sensitive to the selected discount rates and estimates of future
cash ﬂows by management. Key assumptions used to determine
the recoverable value of the CGU are the expected future labour
expenses, future interest rates, future exchange rates to convert
in euro the portion of future US dollar and pound sterling which
are not hedged and the estimated growth rate of terminal values.

If the recoverable amount of an investment is estimated to be lessthan its carrying amount, the carrying amount of the investment
is reduced to its recoverable amount. Any impairment loss isrecognised immediately in the statement of income.
Impairment losses recognised in prior periods shall be reversed
only if there has been a change in the estimates or external market
information used to determine the investment’s recoverable
amount since the last impairment loss was recognised.
The recoverable amount shall not exceed the carrying amountthat would have been determined had no impairment loss beenrecognised in prior years.

Change of Investments in Subsidiaries
On 26 June 2015, Airbus Group SE has made a capital
contribution of US$ 146 million into Airbus Group Proj B.V., a
100% subsidiary, in the frame of the industrial partnership with
OneWeb Ltd. for the design and manufacturing of microsatellites.
On 8 December 2015, Airbus Group SE entered into a partnershipagreement to establish a Corporate venture capital fund, dubbed
Airbus Group Ventures, as well as a technology and business
innovation center in Silicon Valley. On 25 November 2015, aﬁrst investment of US$ 5 million has been made into this fund.
On 15 December 2015, Airbus Group SE has made a capitalincrease of € 19 million into Aero Ré S.A., thereby acquiring
50.9% of the shares of the Company.
On 25 July 2014, Airbus Group SE acquired 100% shares in
Salzburg München Bank AG from Raiffeisenverband Salzburg
followed by a capital increase in December 2014. The total
capital contribution amounted to € 100 million.
On 13 November 2014, Airbus Group SE entered into a sharepurchase agreement with its subsidiary Sogerma S.A.S. to sell
its 100% subsidiary Aerolia S.A.S. for a total consideration of€ 700 million. The transaction was closed on the same date,whereby the Company recognised a € 480 million capital gain
within income from investments.

Change of Investments in Associated Companies
On 9 December 2014, Airbus Group SE signed a share purchaseagreement with the State of Finland to sell its entire 26.8%
share in Patria Oyj to the Finnish defence, security and aviation
services provider for a total consideration of € 133 million.
The transaction was closed on 11 December 2014 and theCompany recognised a € 91 million capital gain within income
from investments.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 97 l

4.

Notes to the IFRS Company Financial Statements

INFORMATION ON PRINCIPAL INVESTMENTS OF THE COMPANY

2015

2014

Company

Head office

%

50.90

0.00

Aero Ré S.A.

Bertrange (Luxembourg)

66.08

78.48

Airbus Defence and Space GmbH

Taufkirchen (Germany)

100.00100.00Airbus Defence and Space S.A.

Madrid (Spain)

97.57

97.46

Airbus DS Holdings B.V.

Leiden (Netherlands)

0.00

100.00Airbus DS Ltd.

Newport (UK)100.00100.00Airbus Group Bank GmbH

Munich (Germany)

100.00100.00Airbus Group Finance B.V.

Leiden (Netherlands)

100.00100.00Airbus Group Inc.

Herndon, VA (USA)100.00100.00Airbus Group Ltd.

London (UK)100.000.00

Airbus Group Proj B.V.

Leiden (Netherlands)

100.00100.00Airbus Group S.A.S.

Toulouse (France)

99.00

0.00

Airbus Group Ventures Fund I, L.P.

Mountain View, CA (USA)100.00100.00Airbus Helicopters Holding S.A.S.

Marignane (France)

100.00100.00Airbus S.A.S.

Toulouse (France)

100.00100.00DADC Luft-und Raumfahrt Beteiligungs GmbH

Taufkirchen (Germany)

100.00100.00Premium Aerotec GmbH

Augsburg (Germany)

Percentages represent share held directly by Airbus Group SE.

With effect of 1 January 2015, Airbus Operations GmbH contributed its A400M “IFA and Cargo Hold System”, Bremen business
into Airbus Defence and Space GmbH in turn to become a new shareholder. As a consequence Airbus Group SE’s participationin Airbus Defence and Space GmbH was diluted from 78.48% to 66.08%.

8.

Financial Assets and Liabilities

Financial assets and liabilities at 31 December 2015 and 2014 consist of the following:
31 December(In € million)

2015

2014

Long-term financial assets

3,594

3,128

Long-term loans Group companies

3,583

3,074

11

54

Non-current other financial assets

7,979

3,321

Positive fair values of derivative financial instruments

7,979

3,321

Long-term loans external

Current other financial assets

4,431

2,502

Positive fair values of derivative financial instruments

3,982

2,187

Current portion long-term loans Group companies

449

315

(20,062)(16,793)

Current accounts Group companies(1)Receivables from subsidiaries

8,353

8,856

Liabilities to subsidiaries(28,415)(25,649)

Non-current financial liabilities(7,960)(3,405)

Negative fair values of derivative financial instruments(7,960)(3,405)Current financial liabilities(3,991)(2,257)

Negative fair values of derivative financial instruments(3,991)(2,257)(1) The receivables from and liabilities to subsidiaries include mainly transactions in connection with the cash pooling in Airbus Group SE.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 98 l

Financial Statements 2015
Notes to the IFRS Company Financial Statements

9.

Commitments and Contingencies

Off-Balance Sheet Commitments
Airbus Group SE issued guarantees on behalf of Group companies
in the amount of € 6,347 million (2014: € 6,409 million). The
commitments of these companies to third parties mainly relate
to their operating business as described in Note 18 “Property,
plant and equipment”, Note 25 “Sales ﬁnancing transactions”
and Note 35 “Information about ﬁnancial instruments” of theConsolidated Financial Statements. In addition, the Company
has entered into capital contribution commitments with Group
companies in the amount of € 54 million (2014: € 0 million).

On 15 June 2015, Airbus Group SE announced an industrial
partnership with OneWeb Ltd. for the design and manufacturingof microsatellites with a total commitment amount of
US$ 166 million. On 26 June 2015, a first investment of
US$ 146 million has been made into this partnership.
On 8 December 2015, Airbus Group SE entered into a
partnership agreement to establish a Corporate venture capitalfund, dubbed Airbus Group Ventures, as well as a technology
and business innovation center in Silicon Valley with a totalcommitment amount of US$ 150 million. On 25 November 2015,
a ﬁrst investment of US$ 5 million has been made into this fund.

4.4 Employees
10. Number of Employees
The average number of the persons employed by the Company in 2015 was 3 (2014: 3).

4.5 Capital Structure and Financial Instruments
11. Total Equity
Airbus Group’s shares are ordinary shares with a par value of € 1.00. The following table shows the development of the numberof shares outstanding:(In number of shares)

Issued as at 1 January

2015

2014

784,780,585

783,157,635

Issued for ESOP1,539,0140Issued for exercised options

1,910,428

1,871,419

Cancelled
Issued as at 31 December
Treasury shares as at 31 December(2,885,243)(248,469)

785,344,784

784,780,585(1,474,057)(431,832)

Outstanding as at 31 December

783,870,727

784,348,753

Authorised shares

3,000,000,000

3,000,000,000

Holders of ordinary shares are entitled to dividends and are entitled to one vote per share at general meetings of the Company.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 99 l

4.

Notes to the IFRS Company Financial Statements

Capital stock comprises the nominal amount of shares
outstanding. The addition to capital stock represents thecontribution for exercised options of € 1,910,428 (in 2014:€ 1,871,419) in compliance with the implemented stock option
plans and by employees of € 1,539,014 (in 2014: € 0) under the
Employee Stock Ownership Plans (“ESOP”).
Share premium mainly results from contributions in kind in
the course of the creation of Airbus Group, cash contributions
from the Initial Public Offering, capital increases and reductions
due to the issuance and cancellation of shares as well as cash
distributions to Airbus Group SE shareholders. On 27 May 2015,
the Shareholders’ General Meeting decided to distribute a grossamount of € 1.20 per share, which was paid on 3 June 2015. For
the ﬁscal year 2015, the Group’s Board of Directors proposesa cash distribution payment of € 1.30 per share.
Accumulated other comprehensive income (“AOCI”)
includes:change from available-for-sale financial assets (seeNote 13.2 “Carrying amounts and fair values of ﬁnancial
instruments”);■
change in fair value of derivatives designated as cash ﬂow
hedges (see Note 13.2 “Carrying amounts and fair values ofﬁnancial instruments”).
■

Treasury shares represent the amount paid or payable for own
shares held in treasury.

Authorisations Granted by the Shareholders’
General Meeting of Airbus Group Held on
27 May 2015
On 27 May 2015, the Annual General Meeting of the Company
authorised the Board of Directors, for a period expiring at theAnnual General Meeting to be held in 2016, to issue shares andgrant rights to subscribe for shares in the Company’s sharecapital for the purpose of:■■funding the Company and its Group companies, provided
that such powers shall be limited to an aggregate of 0.3% of
the Company’s authorised capital (see Note 34.3 “Financing
liabilities” of the Group’s Consolidated Financial Statements).

For each operation, such powers shall not extend to issuingshares or granting rights to subscribe for shares if there is nopreferential subscription right and for an aggregate issue pricein excess of € 500 million per share issuance.
Also on 27 May 2015, the Annual General Meeting of theCompany authorised the Board of Directors for an 18-month
period to repurchase up to 10% of the Company’s issued andoutstanding share capital (i.e. issued share capital excluding
shares held by the Company or its subsidiaries) at a price notexceeding € 85 per share.
Airbus Group has appointed an Investment Services Provider
to undertake a share buyback on behalf of the Company
for a maximum amount of € 1 billion. The buyback will takeplace between 2 November 2015 and 30 June 2016. As of
31 December 2015 the Company bought back € 264 millionof shares and recognised a ﬁnancing liability of € 223 million
for its irrevocable share buyback commitment at that date.
Recognition of the ﬁnancing liability led to a corresponding
reduction of equity.
Furthermore, the Annual General Meeting authorised boththe Board of Directors and the Chief Executive Ofﬁcer, withpowers of substitution, that the number of shares repurchasedby the Company pursuant to the share buyback programme arecancelled. As per decisions of the Chief Financial Ofﬁcer upondelegation of the Chief Executive Ofﬁcer, on 17 December 2015,
a number of 2,885,243 shares have been cancelled.

ESOPs in the limit of 0.1% of the Company’s authorised sharecapital (see Note 30 “Share-based payment” of the Group’s
Consolidated Financial Statements);

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 100 lFinancial Statements 2015
Notes to the IFRS Company Financial Statements

Reconciliation Consolidated to Company Equity and Net Income
The difference between the total shareholders’ equity according to the Consolidated Financial Statements and Company’s Financial
Statements as at 31 December 2015 and 2014 is as follows:
31 December(In € million)

2015

2014

Consolidated equity

5,966

7,061

AOCI - Restatement of investments from Consolidated to Company Financial Statements

4,527

1,390

Retained Earnings - Restatement of investments from Consolidated to Company Financial Statements(1,537)

1,657

Retained Earnings - Valuation investments at historical cost

1,487

1,487

Retained Earnings - Impairment of financial assets(1,273)(1,273)Company’s equity

9,170

10,322The difference between the net income according to the Consolidated Financial Statements and Company’s Financial Statements
for the year ended 31 December 2015 and 2014 is as follows:(In € million)

2015

2014

Consolidated net income

2,696

2,343

Income from investments according to Consolidated Financial Statements(2,694)(2,412)

Income from investments according to Company Financial Statements

9760

Loss on / Impairment of financial assets

(5)

(45)

Other valuation differences

48

(23)

Company’s net income (Profit for the period)

54

623

12. Cash, Securities and Financing Liabilities

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

2015(In € million)

Bank accounts

2014

444

1,195

Short-term securities (at fair value through profit or loss)

3,220

3,261

Short-term securities (available-for-sale)

2,851

1,744

Total cash and cash equivalents

6,515

6,200

Only securities with a maturity of three months or less from the date of the acquisition, that are readily convertible to known
amounts of cash and which are subject to an insigniﬁcant risk of changes in value are recognised in cash equivalents.

12.2 Securities
31 December(In € million)

2015

2014

Current securities (available-for-sale)

1,683

3,077

Non-current securities (available-for-sale)

9,590

5,805

Non-current securities (at fair value through profit or loss)

Total securities

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 101 l

3

4

11,2768,886

4.

Notes to the IFRS Company Financial Statements

Included in the securities portfolio as of 31 December 2015
and 2014, respectively, are corporate and government bonds
bearing either ﬁxed rate coupons (€ 10,604 million nominal value;comparably in 2014: € 7,010 million) or ﬂoating rate coupons(€ 397 million nominal value; comparably in 2014: € 247 million)
and foreign currency funds of hedge funds (€ 8 million nominal
value; 2014: € 8 million).

12.3 Financing Liabilities
Current and non-current classiﬁcation – A ﬁnancial asset or liability is classiﬁed as current if it is settled within 12 months after
the reporting date, and as non-current otherwise.
Financing liabilities comprise obligations towards ﬁnancial institutions, issued corporate bonds, and payables due to relatedparties.
The Company has received several euro-denominated loans and one US dollar-denominated loan from Airbus Group Finance B.V.
(“AGFBV”). It has also issued a convertible bond in euro. Furthermore, the Company has long-term US dollar-denominated loans
outstanding with the European Investment Bank (“EIB”) and the Development Bank of Japan (“DBJ”). The terms and repayment
schedules of these bonds and loans are as follows:
Carrying amountPrincipal
amount31 December(in million)

2015

€499

2014

Coupon orinterest
rate

Effective
interest rate

Maturity€ 499

3M Euribor+1.85%

at variable rate

Sept. 2018

€ 999

3M Euribor+1,585%at variable rate

Aug. 2016

Additional features

Loans from Airbus Group Finance B.V.
AGFBV 15 years(EMTN)AGFBV 7 years(EMTN)AGFBV 10 years(EMTN)AGFBV 15 years(EMTN)€ 500€ 1,000€ 1,000

€ 500

€999

€1,021

€497

€ 995

€ 494

AGFBV USD Loan
10 years

US$ 1,000

€919

€ 819

Billet de trésorerie
programme

US$ 550

€505

€0

2.40%

2.45%

2.15%

2.24%

Apr. 2024

Interest rate
swapped into
3M Euribor +1.40%

Oct. 2029

Interest rate
swapped into
3M Euribor +0.84%

2.72%

2.80%

Apr. 2023

Interest rate
swapped into
3M US-Libor +0.68%

Loans from financial institutions
DBJ 10 years

US$ 300

€276

€ 247

3M US-Libor+1.15%

4.84%

Jan. 2021

Interest rate swapped
into 4.76% fixed

EIB 10 years

US$ 721

€567

€ 594

3M US-Libor+0.85%

3.20%

Aug. 2021

Interest rate swapped
into 3.2% fixed

EIB 7 years

US$ 406

€373

€ 334

3M US-Libor+0.93%

at variable rate

Feb. 2020

EIB 10 years

US$ 627

€576

€ 516

2.52%

2.52%

Dec. 2024

EIB 10 years

US$ 320€294€0

6M US-Libor+0.56%

at variable rate

Dec. 2025

Share buybackcommitment

€223

€0

Others€11€ 54

Interest rate
swapped into
3M Euribor +0.61%

Bond

Convertible bond
7 years

Total

€ 500

€457

€0

€7,217€ 5,551

Thereof non-current
financing liabilities€5,394€ 5,551

Thereof current
financing liabilities€1,823€00.00%

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 102 l

1.39%

July 2022

Convertible into
Airbus Group SE
shares at € 99.54
per share

Financial Statements 2015
Notes to the IFRS Company Financial Statements

The Company can receive loans from issued commercial papers
under the so called “billet de trésorerie” programme at ﬂoating
or ﬁxed interest rates corresponding to the individual maturities
ranging from 1 day to 12 months. The programme has been set
up in 2003 with a maximum volume of € 2 billion, increased in2013 to a maximum volume of € 3 billion.
The decrease in long-term financing liabilities is mainly due
to a reclassiﬁcation between long-term and short-term bonds,
partly offset by the issue of a convertible bond for € 500 millionon 1 July 2015, with a 7 year-maturity. This bond bears a couponof 0% and was issued at 102% of par. Its effective interest rate,
after separation of the equity conversion option (€ 53 million),is 1.386%.
Included in the short-term financing liabilities is the irrevocablepart of the share buyback commitment in the amount of€ 223 million.

13. Information about Financial Instruments
13.1 Financial Risk Management
The Company acts as an intermediary for its subsidiaries when
they wish to enter into derivative contracts to hedge against
foreign exchange risk or other market risks such as interest raterisk, commodity price risk or equity price risk. The Company’s
practice is to set up a derivative contract with a subsidiary andat the same time enter into a back-to-back derivative transaction
with a bank. Contracts with subsidiaries being thus mirrored (ona one-to-one basis) by contracts with banks, the Company’s net
exposure is virtually zero. There are, however, a few derivative
contracts the Company holds in order to hedge its own market
risk exposure.
As the Company’s back-to-back hedge contracts are enteredinto with different counterparties, their fair values are reﬂected
separately in the statement of Financial Position and recognised
as other ﬁnancial assets and ﬁnancial liabilities as disclosed in
Note 8 “Financial assets and liabilities” of the Company Financial
Statements.
In the Statement of Income the results of the back-to-back hedgetransactions, both realised and unrealised, are presented on a
net basis as the Company acts as an agent for its subsidiaries.
The Company’s overall ﬁnancial risk management activities andtheir objectives are described in detail in section 35.1 “Financial
risk management” of the Notes to the Consolidated Financial
Statements.

Market Risk
Foreign exchange risk — The Company manages along-term hedge portfolio with maturities of several years
for its subsidiaries, mainly Airbus, and to a small extent for
its joint ventures or associates. This hedge portfolio covers alarge portion of Airbus Group’s ﬁrm commitments and highly
probable forecast transactions. As explained above, owing to
the Company’s back-to-back approach, its own exposure toforeign exchange risk is very limited.

Interest rate risk — The Company uses an asset-liability
management approach with the objective to limit its interest
rate risk. The Company undertakes to match the risk proﬁleof its interest-bearing assets with those of its interest-bearing
liabilities, the remaining net interest rate exposure being
managed through several types of interest rate derivatives. If
the derivative instruments qualify for hedge accounting in the
Company Financial Statements the Company applies cash ﬂow
hedge accounting or fair value hedge accounting. For more
information on the risk management and hedging strategies
used by the Group please refer to section 35.1 “Financial
risk management” of the Notes to the Consolidated Financial
Statements.
Equity price risk — The Company is to a small extent invested
in quoted equity securities mainly for strategic reasons. The
Company’s exposure to equity price risk is hence limited.
Furthermore, Airbus Group is exposed under its long-term
incentive plan (LTIP) to the risk of Airbus Group share pricemovements. In order to limit these risks for the Group, theCompany enters into equity derivatives that reference theAirbus Group SE share price.
Sensitivities of market risks — The approach used tomeasure and control market risk exposure within the Group’s
ﬁnancial instrument portfolio is amongst other key indicators
the value-at- risk (“VaR”). For information about VaR andthe approach used by the Company to assess and monitor
sensitivities of market risks please refer to section 35.1 “Financial
Risk Management” of the Notes to the Consolidated Financial
Statements.
The Company is part of the Group risk management process,which is more fully described in section 35.1 “Financial risk
m anagement” of the Notes to the Consolidated Financial
Statements.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 103 l

4.

Notes to the IFRS Company Financial Statements

A summary of the VaR position of the Company’s ﬁnancial instruments portfolio at 31 December 2015 and 2014 is as follows:
Total VaR

Equity price VaR

Currency VaRInterest rate VaR

FX hedges

19

0

19

0

Financing liabilities, financial assets (incl. cash,
cash equivalents, securities and related hedges)

50

22

29

28

Equity swaps

11

11

0

0

Diversification effect

(39)

(8)

(39)

0

All financial instruments

41

25

9

28

FX hedges

15

0

15

0

Financing liabilities, financial assets (incl. cash,
cash equivalents, securities and related hedges)

22

13

12

18

Equity swaps

17

17

0

0

Diversification effect

(20)

(6)

(24)

0

All financial instruments

34

24

3

18

(In € million)

31 December 201531 December 2014

The increase of total VaR compared to 31 December 2014 is mainly caused by to a strong increase of market volatilities particularly
in relation with interest rates and FX. The Company enters into derivative instruments mainly for hedging purposes of the Group.
The derivative instruments entered into with Group-external counterparties are passed on a 1:1 basis to Airbus Group entities.
As a result, the respective market risks of the Group-external derivative instruments are offset by corresponding opposite market
risks of intragroup transactions.

Liquidity Risk
The Company’s policy is to maintain sufﬁcient cash and cash equivalents at any time to meet its own and the Group’s present
and future commitments as they fall due. For information on how the Group monitors and manages liquidity risk please refer tosection 35.1 “Financial Risk Management” of the Notes to the Consolidated Financial Statements.
The contractual maturities of the Company ﬁnancial liabilities, based on undiscounted cash ﬂows and including interest payments,
if applicable, are as follows:(In € million)

Carrying
amountContractual
cash flows< 1 year

1 year2 years

2 years3 years

3 years4 years

4 years- More than
5 years
5 years

31 December 2015
Non-derivative financial liabilities(7,217)(8,064)(1,946)

(211)

(781)

(269)

(687)

Derivative financial liabilities(11,951)(13,698)(4,100)(3,635)(2,992)(1,976)(560)(4,170)
(435)

Total

(19,168)(21,762)(6,046)(3,846)(3,773)(2,245)(1,247)(4,605)Non-derivative financial liabilities(5,551)(6,405)(194)(1,193)

(230)

(749)

(237)

(3,802)Derivative financial liabilities(5,662)(7,567)(2,310)(1,789)(1,066)(615)(1,407)(380)(11,213)(13,972)(2,504)(2,982)(1,296)(1,364)(1,644)(4,182)31 December 2014

Total

Credit Risk
The Company is exposed to credit risk to the extent of
non-performance by either the related parties to which it
provides ﬁnancing or its counterparts with regard to ﬁnancial
instruments or issuers of ﬁnancial instruments for gross cash
investments. Although the Company provides loans to Group
companies its credit risk is limited to its direct subsidiaries.

For the policies the Company has put in place to avoid
concentrations of credit risk and to ensure that credit risk islimited please refer to section 35.1 “Financial risk management”
of the Notes to the Consolidated Financial Statements.
In 2015, the total receivables, neither past due nor impaired
amount to € 4,946 million (in 2014: € 4,226 million).

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 104 lFinancial Statements 2015
Notes to the IFRS Company Financial Statements

13.2 Carrying Amounts and Fair Values of Financial Instruments
Financial instruments – The Company’s ﬁnancial assets mainly
consist of cash, short to medium-term deposits and securities.
The Company’s ﬁnancial liabilities include intragroup liabilities,
obligations towards ﬁnancial institutions and issued bonds.
The Company has the same classiﬁcation and accounting
policies as the Group. Please refer to section 35.1 “Financial
Risk Management” of the Notes to the Consolidated Financial
Statements for more information.

The Company assigns its ﬁnancial instruments (excluding its
at-cost investments, which are outside the scope of IAS 39“Financial instruments: recognition and measurement”) intoclasses based on their category in the statement of ﬁnancial
position.

The following tables present the carrying amounts and fair values of ﬁnancial instruments by class and by IAS 39 measurement
category as of 31 December 2015 and 2014:31 December 2015
(In € million)

Fair value
for hedge
relations

Fair value throughprofit or loss

Availablefor-saleLoans and receivables
and financial liabilities
at amortised cost

Financial
instruments
total

Amortised
cost

Book
value

Held fortrading

Designated

Fair
value

Book
value

Fair
value

Fair
value

Fair
value

AssetsOther investments andlong-term financial assets■

Equity instruments

0

0

0

199

199

0

0

199

199

■

Loans

0

0

0

0

0

4,043

4,147

4,043

4,147

Trade receivables

0

0

0

0

0

11

11

11

11

0

0

11,899

0

61

0

0

0

0

11,96011,960

Other financial assets■■

Derivative instruments
Current account Group
companies

0

0

0

0

0

8,353

8,353

8,353

8,353

Securities

0

3

0

11,273

11,2730011,276

11,276

Cash and cash equivalents

0

3,220

0

2,851

2,851

444

444

6,515

6,515

11,8993,223

61

14,323

14,323

12,851

12,95542,35742,461

0

0

0

962

992

962

992

Total
Liabilities
Financing liabilities■■■

Issued bonds andcommercial papers

00Liabilities to banks andother financing liabilities

0

0

0

0

0

2,309

2,338

2,309

2,338

Internal loans payable

0

0

0

0

0

3,945

4,070

3,945

4,070

11,901

0

50

0

0

0

0

11,951

11,951

0

0

0

0

0

28,41528,41528,41528,415

11,901

0

50

0

0

35,63135,81547,58247,766

Other financial liabilities■■

Derivative instruments
Current accounts Group
companies

Total

4.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 105 lNotes to the IFRS Company Financial Statements

31 December 2014
(In € million)

Fair value
for hedge
relations

Fair value throughprofit or loss
Held fortrading

DesignatedAvailablefor-saleLoans and receivables
and financial liabilities
at amortised cost

Financial
instruments
total

Fair
value

Book
value

Fair
value

Amortised
cost

Book
value

Fair
value

Fair
value

AssetsOther investments andlong-term financial assets■

Equity instruments

0

0

0

157

157

0

0

157

157

■

Loans

0

0

0

0

0

3,445

3,649

3,445

3,649

Trade receivables

0

0

0

0

0

9

9

Other financial assets■■

Derivative instruments

5,507

Current account Group
companies

0

0

0

0

0

0

9

9

0

0

5,507

5,507

0

0

0

0

0

8,856

8,856

8,856

8,856

Securities

0

4

0

8,882

8,882

0

0

8,886

8,886

Cash and cash equivalents

0

3,261

0

1,744

1,744

1,195

1,195

6,200

6,200

5,507

3,265

0

10,783

10,783

13,505

13,70933,06033,264

0

0

0

0

0

0

0

0

0

Total
Liabilities
Financing liabilities■■■

Issued bonds andcommercial papers
Liabilities to banks andother financing liabilities

0

0

0

0

0

1,692

1,712

1,692

1,712

Internal loans payable

0

0

0

0

0

3,860

4,168

3,860

4,168

5,523

0

139

0

0

0

0

5,662

5,662

Other financial liabilities■■

Derivative instruments
Current accounts Group
companies

Total

0

0

0

0

0

25,64925,64925,64925,649

5,523

0

139

0

0

31,201

31,52936,86337,191

Fair Value Hierarchy
For further details please refer to Note 35.2 “Carrying amounts and fair values of ﬁnancial instruments” in the Consolidated
Financial Statements.
The fair values disclosed for ﬁnancial instruments accounted for at amortised cost reﬂect Level 2 input.
The following table presents the carrying amounts of the ﬁnancial instruments held at fair value across the three levels of the fairvalue hierarchy as of 31 December 2015 and 2014, respectively:
31 December 2015
(In € million)

Level 1

Level 231 December 2014

Total

Level 1

Level 2

Total

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

Total

199

0

199

157

0

157

0

11,961

11,961

0

5,505

5,505

11,112

164

11,276

7,500

1,386

8,886

3,941

2,130

6,071

3,563

1,442

5,005

15,252

14,25529,507

11,2208,333

19,553

0

11,951

11,951

0

5,662

5,662

Financial liabilities measured at fair value
Derivative instruments
Other liabilities

0

0

0

0

0

0

Total

0

11,951

11,951

0

5,662

5,662

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 106 l

Financial Statements 2015
Notes to the IFRS Company Financial Statements

13.3 Potential Effect of Set-Off Rights on Recognised Financial Assets and Liabilities
The Company reports all its ﬁnancial assets and ﬁnancial liabilities on a gross basis. With each derivative counterparty there are
master netting agreements in place providing for the immediate close-out of all outstanding derivative transactions and paymentof the net termination amount in the event a party to the agreement defaults or another deﬁned termination event occurs. The
following tables set out, on a counterparty speciﬁc basis, the potential effect of master netting agreements on the Company’s
ﬁnancial position, separately for ﬁnancial assets and ﬁnancial liabilities that were subject to such agreements as of 31 December
2015 and 31 December 2014, respectively:
Derivative instruments(In € million)

Gross amounts
Grossrecognised set
amounts off in the financial
recognised
statements

Net amounts
presented in
the financial
statements

Related amounts not set off inthe statement of financial position

Financial
instruments

Cash collateral
receivedNet
amount31 December 2015
Financial assets

11,961

0

11,961(2,754)0

9,207

Financial liabilities

11,951

0

11,951(2,754)

0

9,197

Financial assets

5,505

0

5,505

(1,038)0

4,467

Financial liabilities

5,662

0

5,662

(1,038)04,624

31 December 201413.4 Notional Amounts of Derivative Financial Instruments
The maturity of hedged interest cash flows are as follows, speciﬁed by year of expected maturity:
Remaining period

Total

1 year

2 years

3 years

4 years

5 years

6 years

Interest rate contracts

2,549

41

1,021

18

14

1,134

8

3,469

8,254

Interest rate future contracts

1,032

0

0

0

0

0

0

0

1,032

Interest rate contracts

833

2,537

30

1,000

0

0

1,088

0

5,488

Interest rate future contracts

176

0

0

0

0

0

0

0

176

(In € million)

7 years > 7 years

31 December 201531 December 2014

The notional amounts of equity swaps are as follows:
Remaining period(In € million)

Total

1 year

2 years

3 years

4 years> 4 years

31 December 2015

153

76

52

49

20

350

31 December 2014

209

146

75

23

0

453

4.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 107 lNotes to the IFRS Company Financial Statements

13.5 Derivative Financial Instruments and Hedge Accounting Disclosure
In addition, a gain of € 20 million was recognised in the proﬁt for the period in 2015 (€ 35 million in 2014) on derivatives that were
designated as hedging instruments in a fair value hedge, and a loss of € -18 million (in 2014: € -34 million) attributable to the hedged
risk was recognised in the proﬁt for the period on the corresponding hedged items. Corresponding with its carrying amounts, thefair values of each type of derivative ﬁnancial instruments are as follows:
31 December
2015

Assets(In € million)

Foreign currency contracts – cash flow hedges
Foreign currency contracts – not designated in a hedge relationship2014

Liabilities

AssetsLiabilities

0

26

0

9

11,66911,671

5,265

5,282

Interest rate contracts – cash flow hedges

0

13

0

14

Interest rate contracts – fair value hedges

30

4

0

23

Interest rate contracts – not designated in a hedge relationship

100

100

138

136

Commodity contracts - not designated in a hedge relationship

130

130

104

104

Equity swaps – not designated in a hedge relationship

Total

31

7

0

94

11,96011,951

5,507

5,662

13.6 Net Gains or Net Losses
The Company’s net gains or net losses recognised in proﬁt or loss in 2015 and 2014, respectively are as follows:(In € million)

2015

2014
(326)

Financial assets or financial liabilities at fair value through profit or loss:
Held for trading

70

Designated on initial recognition

165

185

Available-for-sale financial assets

183

206

Loans and receivables(1)

375

338

Financial liabilities measured at amortised cost

(631)

(576)

Total

162

(173)

(1) Contain among others impairment losses.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 108 lFinancial Statements 2015
Notes to the IFRS Company Financial Statements

4.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 109 l

Chapter

5.
AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 110 l

Financial Statements 2015

Other Supplementary Information
Including theIndependent Auditor’s Report

5.
AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 111 lOther Supplementary Information Including the Independent Auditor’s Report

Other Supplementary Information
1.

Appropriation of Result

Articles 30 and 31 of the Articles of Association provide that the Board of Directors shall determine which part of the result shallbe attributed to the reserves. The General Meeting of Shareholders may dispose of a reserve only upon a proposal of the Boardof Directors and to the extent it is permitted by law and the Articles of Association. Dividends may only be paid after adoption of
the annual accounts from which it appears that the shareholders’ equity of the Company is more than the amount of the issued
and paid-in part of the capital increased by the reserves that must be maintained by law.
It will be proposed at the Annual General Meeting of Shareholders that the Proﬁt for the period of € 54 million as shown in theincome statements for the ﬁnancial year 2015 is to be added to retained earnings and that a payment of a gross amount of € 1.30
per share shall be made to the shareholders out of retained earnings.

2.

Events after the Reporting Date

For further information please see Note 38 “Events after the reporting date” of the Consolidated Financial Statements.

3.

Independent Auditor’s Report

To: the General Meeting of Shareholders of Airbus Group SE

Report on the Audit of the Annual Financial Statements 2015
OpinionIn our opinion, the consolidated and company ﬁnancial statements give a true and fair view of the ﬁnancial position of Airbus GroupSE as at December 31, 2015, and of its result and its cash ﬂows for 2015 in accordance with International Financial ReportingStandards as adopted by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Netherlands Civil Code.

What We Have Audited
We have audited the ﬁnancial statements 2015 of Airbus Group SE, based in Amsterdam. The ﬁnancial statements include theConsolidated Financial Statements and the Company ﬁnancial statements.
The consolidated and company ﬁnancial statements comprise:1

the consolidated and company statement of financial position as at December 31, 2015;2

the following statements for 2015: the consolidated and company income statement and the consolidated and company
statements of comprehensive income, changes in equity and cash flows; and3

the notes comprising a summary of the significant accounting policies and other explanatory information.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 112 l

Financial Statements 2015
Other Supplementary Information Including the Independent Auditor’s Report

Basis for our Opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities underthose standards are further described in the ’Our responsibilities for the audit of the ﬁnancial statements’ section of our report.
We are independent of Airbus Group SE in accordance with the “Verordening inzake de onafhankelijkheid van accountants bij
assurance-opdrachten” (ViO) and other relevant independence regulations in the Netherlands. Furthermore, we have compliedwith the “Verordening gedrags- en beroepsregels accountants” (VGBA).
We believe that the audit evidence we have obtained is sufﬁcient and appropriate to provide a basis for our opinion.

Audit Approach
Summary
Unqualified audit opinion

Materiality
Overall materiality of EUR 200 million
5.9% of consolidated profit before tax■■

Key audit matters
Accounting for construction contracts, including revenue
recognition and loss provisions
Valuation of inventories for contracts accounted for under
IAS 18 and completeness of provisions for contract losses
and customer service obligations
Litigation and claims and risk of non-compliance with laws
and regulations
Goodwill impairment
Derivative financial instruments, including impact on
capitalisation of Airbus Group■

Scope of the Group audit
Coverage of 96% of Group revenue and 96% of Group total
assets
■

■

■

■

■

Materiality
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be
expected to inﬂuence the economic decisions of users taken on the basis of these ﬁnancial statements. The materiality affects
the nature, timing and extent of our audit procedures and the evaluation of the effect of identiﬁed misstatements on our opinion.
Based on our professional judgement we determined the materiality for the ﬁnancial statements as a whole at EUR 200 (2014:
EUR 222) million. The materiality is determined with reference to consolidated proﬁt before income taxes (2015: 5.9%; 2014: 6.9%).
We consider consolidated proﬁt before income taxes as the most appropriate benchmark given the nature of the business. We
have also taken into account misstatements and/or possible misstatements that in our opinion are material for qualitative reasonsfor the users of the ﬁnancial statements.
We agreed with the Board of Directors and Audit Committee that misstatements in excess of EUR 10 million, which are identiﬁed
during the audit, would be reported to them, as well as smaller misstatements that in our view must be reported on qualitative
grounds.

Scope of the Group audit
Airbus Group SE is head of a group of entities, hereafter referred to as “Airbus Group” or “Group”. The ﬁnancial information of thisGroup is included in the ﬁnancial statements of Airbus Group SE.
Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and performing the Groupaudit. In this context, we have determined the nature and extent of the audit procedures to be performed for the Group entities,
based on the signiﬁcance and/or risk proﬁle of entities or activities. On this basis, we selected Group entities for which an audit
had to be carried out on the complete set of ﬁnancial information or speciﬁc items.
Our Group audit mainly focused on signiﬁcant Group entities. A signiﬁcant part of the audit is performed by other auditors within
the KPMG network or by other non-KPMG audit ﬁrms. The organisation and supervision of the audit of the ﬁnancial statements
is a crucial part of our work.
We scope entities into the Group audit where they are of signiﬁcant size, have signiﬁcant risks to the Group associated with themor are considered signiﬁcant for other reasons. This resulted in coverage of 96% (2014: 96%) of total Group revenue and 96%(2014: 98%) of total Group assets. For remaining entities, we performed, amongst others, analytical procedures to corroborate
our assessment that there are no signiﬁcant risks of material misstatement within these entities.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 113 l5.

Other Supplementary Information Including the Independent Auditor’s Report

The audit of the Airbus Group consolidation and the ﬁnancial statements is performed at the Airbus headquarters in Toulouse,
France. Our involvement in the audit includes participation in risk assessment and planning discussions, setting the directionof the Group audit work (including instructions to the divisional and entity auditors), review and discussion of the planned audit
approach, obtaining an understanding of the ﬁnancial reporting process, performing procedures on the Group consolidation,
participating in the evaluation of key accounting topics, reviewing the ﬁnancial statements and participating in meetings with Groupand divisional management. As part of our Group audit instructions, we also issued speciﬁc questionnaires on key programmes(A380, A350 XWB and A400M) and the risk of non-compliance with laws and regulations.
The audit of the three Airbus Group Divisions (Airbus, Airbus Defence & Space and Airbus Helicopters) is performed jointly by
KPMG network ﬁrms and other non-KPMG audit ﬁrms. Meetings were held with the divisional auditors to discuss the ﬁndings
reported to the Group audit team, as well as ﬁle reviews.
By performing the procedures mentioned above at Group entities, together with additional procedures at Group level, we havebeen able to obtain sufﬁcient and appropriate audit evidence about the Group’s ﬁnancial information to provide an opinion on
the ﬁnancial statements.

Our key audit matters
Key audit matters are those matters that, in our professional judgement, were of most signiﬁcance in our audit of the ﬁnancial
statements. We have communicated the key audit matters to the Board of Directors and Audit Committee. The key audit matters
are not a comprehensive reﬂection of all matters discussed.
These matters were addressed in the context of our audit of the ﬁnancial statements as a whole and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.

Accounting for construction contracts, including revenue recognition and loss provisions
Description
The amount of revenue and profit recognised in a year is dependent on the assessment of the stage of completion of construction contracts aswell as estimated total revenue and estimated total cost. Significant estimates are made to assess the stage of completion based on milestones,
estimated revenue and costs for the key programmes such as A400M and A350 XWB (contracts with launch customers only). Depending onthese assessments, the stage of completion is determined, revenue is recognised and loss provisions are recorded when the contract marginis negative.
Provisions for contract losses relate mainly to the A400M and A350 XWB launch customers and are recorded when it becomes probablethat estimated total contract costs will exceed estimated total contract revenues. Updates to these provisions can have a significant impact
on the Group’s result and financial position. The determination of these provisions is based on best available estimates and requires significant
management judgement and assumptions associated with the technical development achievement and certification schedules, production plan(including assumptions on ramp up), performance guarantees as well as expected outcome from ongoing negotiations with customers.
A key risk is the A400M programme which remains in a critical phase. The A400M SOC 1 and 1.5 milestones remain to be achieved and therefore
the related contractual termination rights from OCCAR/Nations became exercisable (SOC 1: as of 1 November 2015; SOC 1.5 as of 1 January2016). Negotiations with OCCAR/Nations on military functionality, price revision formula and commercial compensation remain ongoing and aretargeted for completion in 2016.
Reference is made to the disclosure on Note 3 “Key estimates and judgements”, Note 10 “Revenues, cost of sales and gross margin” andNote 22 “Provisions, contingent assets and contingent liabilities” of the financial statements.
Our response
We evaluated the design and implementation of internal controls for accounting for construction contracts. We also performed detailed
procedures on individually significant programmes, including discussions with the individual Head of Programme, and evaluated management’s
assumptions in the determination of amongst others the stage of completion of a project, estimates to complete for both revenue and costs,
and any provisions for loss making contracts. We focused on management’s assessment of key contract risks and opportunities to determine
whether these are appropriately reflected in the cost to complete forecasts, and paid specific attention for example to technical development,delivery plan and certification schedules. We challenged management’s assumptions by discussing and reviewing correspondence withcustomers, considered the accuracy and consistency of similar estimates made in previous years and corroborated the assumptions with thelatest contractual information.
We paid particular attention to the loss provision for the A400M programme, including the EUR 290 million additional net charge in 2015, as well
as related disclosures. We discussed the extent to which management assessed the impact on the programme of the accident on 9 May 2015,
and the challenges regarding delays in military functionality and deliveries, (commercial) negotiations with OCCAR/Nations, cost reduction targets
and challenges in the industrial ramp-up and the SOC 1 and 1.5 contractual termination rights. Apart from reviewing underlying documentation,
we also visited the Final Assembly Line in Seville and Bremen, and reviewed reports from Corporate Audit related to the programme.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 114 lFinancial Statements 2015
Other Supplementary Information Including the Independent Auditor’s Report

Valuation of inventories for contracts accounted for under IAS 18 and completeness of provisions for contract losses
and customer service obligations
Description
Inventories amount in total to EUR 29 billion, including work in progress of EUR 20 billion. Key programmes (which are accounted for under
IAS 18 Revenue recognition, for which revenue and cost of sales are recognised as each aircraft is delivered) in light of the risks mentioned below
are the A380 and the A350 XWB contracts with non-launch customers. With respect to the A380, a key challenge is securing the order flow.
Estimates of total contract costs and selling price per aircraft are necessary to determine if a net realisable value impairment or provision
for contract loss is required. In addition to the risk of contract cancellations, significant costs or loss of revenue may be incurred in connection
with remedial action required to correct any performance issues detected. Due to the inherent uncertainty involved in forecasting future costs
and interpreting contractual and commercial positions in determining impairments and provisions, this is a key audit area. Updates to theseprovisions can have a significant impact on the Group’s result and financial position.
Reference is made to the disclosures on Note 3 “Key estimates and judgements”, and notes 20 “Inventories” and 22 “Provisions, contingent
assets and contingent liabilities” of the financial statements.
Our response
We evaluated the design and implementation of internal controls for identifying and recording impairments and provisions and performed
detailed procedures including inquiry of the Head of Programmes and corroboration with other audit evidence. We evaluated management’s
assumptions in the determination of the forecast revenue to be received, costs to be incurred (including any contractual penalties) and grossmargin. Our evaluation was based on our assessment of the historical accuracy of the Group’s estimates in previous periods and included
an analysis of contingencies and impact of known technical issues on cost forecasts and provisions.
Particular attention was paid to the commercial status of the A380 programme, including discussions with Airbus management on the status
and their ongoing commitment to the A380 programme.

Litigation and claims and risk of non-compliance with laws and regulations
Description
A part of the Group’s business is characterised by competition for individual significant contracts with customers which are often directly
or indirectly associated with governments. The process associated with these activities is susceptible to the risk of non-compliance with laws
and regulations. In addition the Group operates in a number of territories where the use of commercial intermediaries is normal practice.
Subsidiaries of Airbus Group SE remain under investigation by various law enforcement agencies in Germany, Greece, UK, Romania and Austria.
Breaches of laws and regulations can lead to fines, penalties, criminal prosecution, litigation and restrictions on future business.
Litigation and claims involve amounts that are potentially significant and the estimate of the amount to be provided as a liability, if any, is inherently
subjective. The outcome of these matters may have a material effect on the Group’s result and financial position.
Reference is made to the disclosure on Note 3 “Key estimates and judgements”, and Note 36 “Litigation and claims” of the financial statements.
Our response
Our audit procedures included, among others, assessment of documents with the Group’s general counsel and the Group/divisional Compliance
Officers on all significant legal and alleged compliance cases. In addition we obtained letters from the Group’s legal counsel and external lawyers
for all significant litigation. We used our own forensic specialists to assess risks and perform procedures to identify actual and potential non­compliance with laws and regulations relevant to the Group’s business, analysed correspondence with enforcement agencies, and monitored
external sources of information. With respect to cases regarding alleged non-compliance with laws and regulations, we assessed the adequacyof management’s response (including investigations and corrective actions).
We tested payments made to commercial intermediaries during the year, made inquiries of appropriate personnel and evaluated the tone set
by the Board and the Group’s approach in managing these compliance risks. We also assessed whether the Group’s disclosures detailingsignificant legal proceedings and suspected breach in laws and regulations adequately disclose the contingent liabilities of the Group within
Note 36.
Particular attention was paid to the alleged compliance cases, the enhanced business development policies with regards to Ethics & Complianceand related disclosures.

5.
AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 115 lOther Supplementary Information Including the Independent Auditor’s Report

Goodwill impairment
Description
Goodwill amounts to EUR 9.9 billion (2014: 10 billion) and represents 9% (2014:10%) of the balance sheet total and 166% (2014: 141%) of total
equity. There is a risk of irrecoverability of the Group’s significant goodwill balance due to weak demand in certain markets and aircraft market
cyclicality. The Company used assumptions such as growth rates, weighted average cost of capital and underlying foreign exchange rates. Dueto the inherent uncertainty involved in forecasting and discounting future cash flows, which are the basis of the assessment of recoverability, thisis one of the key judgemental areas.
Reference is made to the disclosure on Note 17 “Intangible assets” of the financial statements.
Our response
In this area our audit procedures included, among others, testing of the Group’s budgeting procedures upon which the forecasts are based
and the principles and integrity of the Group’s discounted cash flow model. We used our own valuation specialist to assist us in evaluating
the assumptions and methodologies used by the Group, in particular relating to the discount rate used. We also evaluated management’s
sensitivity analyses on the assumptions for each cash generating unit. We compared the sum of the discounted cash flows to the Group’s market
capitalisation to assess the reasonableness of those cash flows. We also assessed whether the Group’s disclosures about the sensitivity of theoutcome of the impairment assessment to changes in key assumptions reflected the risks inherent in the cash flow model.

Derivative financial instruments, including impact on capitalisation of Airbus Group
Description
Airbus Group operates in a business environment that is exposed to currency and interest rate volatility. A significant portion of the Group’s
revenue is denominated in US dollars, while a major part of its costs is incurred in Euro and, to a lesser extent, in pounds Sterling. In response tothese risks the Group uses financial instruments (mainly currency forwards) to mitigate the exposure to changes in market rates. There is a highinherent risk of error in the Group financial statements, both in the valuation of the financial instruments and in the presentation and disclosurein the financial statements.
The magnitude of the Group’s hedge portfolio and potential significant changes in the exchange rate of the US dollar versus the Euro could havea negative impact on the equity of the Group via the “mark to market” valuation of the hedge portfolio. It therefore also has a major impact on thecapitalisation of Airbus Group, with net equity (as percentage of total assets) amounting to 5.6% per 31 December 2015 (2014: 7.4%).
Reference is made to Note 35 “Information about financial instruments” of the financial statements.
Our response
For the audit of financial instruments we used specialists who tested the controls around the Group’s central treasury system, independently
calculated the valuation of the treasury portfolio and tested the application of hedge accounting rules and the resulting accounting treatment.
We also obtained counterparty confirmation of the outstanding financial instruments to verify the existence and ownership. Finally we evaluatedwhether appropriate disclosures relating to financial instruments were made in the financial statements.

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 116 lFinancial Statements 2015
Other Supplementary Information Including the Independent Auditor’s Report

Responsibilities of the Board of Directors for the Financial Statements
The Board of Directors is responsible for the preparation and fair presentation of the ﬁnancial statements in accordance with
EU-IFRS and with Part 9 of Book 2 of the Netherlands Civil Code and for the preparation of the report of the Board of Directors
in accordance with Part 9 of Book 2 of the Netherlands Civil Code. Furthermore, the Board of Directors is responsible for suchinternal control as the Board of Directors determines is necessary to enable the preparation of the ﬁnancial statements that are
free from material misstatement, whether due to errors or fraud.
As part of the preparation of the ﬁnancial statements, the Board of Directors is responsible for assessing the Company’s ability
to continue as a going concern. Based on the ﬁnancial reporting framework mentioned, the Board of Directors should prepare
the ﬁnancial statements using the going concern basis of accounting unless the Board of Directors either intends to liquidate theCompany or to cease operations, or has no realistic alternative but to do so. The Board of Directors should disclose events andcircumstances that may cast signiﬁcant doubt on the Company’s ability to continue as a going concern in the ﬁnancial statements.

Our Responsibilities for the Audit of Financial Statements
Our objective is to plan and perform the audit to obtain sufﬁcient and appropriate audit evidence for our opinion. Our audit has
been performed with a high, but not absolute, level of assurance, which means we may not have detected all errors and fraud.
For a further description of our responsibilities in respect of an audit of ﬁnancial statements in general we refer to the website of
the professional body for accountants in the Netherlands (NBA) www.nba.nl/standardtexts-auditorsreport.

Report on Other Legal and Regulatory Requirements
Report on the Report of the Board of Directors and the Other Information
Pursuant to legal requirements of Part 9 of Book 2 of the Netherlands Civil Code (concerning our obligation to report about thereport of the Board of Directors and other information):
We have no deﬁciencies to report as a result of our examination whether the report of the Board of Directors, to the extent we
can assess, has been prepared in accordance with Part 9 of Book 2 of the Netherlands Civil Code, and whether the information
as required by Part 9 of Book 2 of the Netherlands Civil Code has been annexed;■
We report that the report of the Board of Directors, to the extent we can assess, is consistent with the ﬁnancial statements.
■

Engagement
We were engaged before 2003 for the ﬁrst time as Auditor of Airbus Group SE and operated as Auditor since then. We werere-appointed by the Annual General Meeting of Shareholders as Auditor of Airbus Group SE on May 27, 2015, for the year 2015,
after which we will rotate off from the Airbus Group audit.
Amstelveen, February 23, 2016
KPMG Accountants N.V.
R.J. Aalberts RA

5.
AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 117 l