Unaudited Condensed Interim IFRS Consolidated
Financial Information of Airbus Group SE
for the three-month period ended 31 March 2016
Unaudited Condensed Interim IFRS Consolidated Income Statements .................................................................. 2
Unaudited Condensed Interim IFRS Consolidated Statements of Comprehensive Income .................................... 3
Unaudited Condensed Interim IFRS Consolidated Statements of Financial Position .............................................. 4
Unaudited Condensed Interim IFRS Consolidated Statements of Cash Flows ....................................................... 5
Unaudited Condensed Interim IFRS Consolidated Statements of Changes in Equity ............................................. 6
Notes to the Unaudited Condensed Interim IFRS Consolidated Financial Statements as at 31 March 2016.......... 7
1.

The Company............................................................................................................................................ 72.

Accounting policies.................................................................................................................................... 7

3.

Acquisitions and disposals ........................................................................................................................ 8

4.

Related party transactions......................................................................................................................... 95.

Segment information ................................................................................................................................. 9

6.

Revenues, gross margin and profit before finance result and income taxes ........................................... 11

7.

Finance result.......................................................................................................................................... 12

8.

Income tax............................................................................................................................................... 12

9.

Earnings per share .................................................................................................................................. 12

10.

Intangible assets and property, plant and equipment .............................................................................. 13

11.

Investments accounted for under the equity method............................................................................... 13

12.

Other investments and other long-term financial assets.......................................................................... 13

13.

Inventories............................................................................................................................................... 13

14.

Other financial assets and other financial liabilities ................................................................................. 14

15.

Other assets and other liabilities.............................................................................................................. 14

16.

Total equity.............................................................................................................................................. 15

17.

Provisions................................................................................................................................................ 15

18.

Net cash and cash flows.......................................................................................................................... 16

19.

Financial instruments............................................................................................................................... 17

20.

Litigation and claims ................................................................................................................................ 19

21.

Number of employees ............................................................................................................................. 21

22.

Subsequent events.................................................................................................................................. 21

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

Unaudited Condensed Interim IFRS Consolidated Income Statements

Note
Revenues

1 January 31 March 2016
In € million
In %6

1 January 31 March 2015
In € million
In %Deviation
In € million

12,183100

12,078100

105-10,740-88-10,370

-86

-370

1,443

12

1,708

14

-265

Selling, administrative and other expenses

-651

-5

-631

-5

-20

Research and development
expenses

-547

-5

-701

-6

154

Other income

85

1

127

1

-42

Share of profit from investments
under the equity method and otherincome from investments

32

0

729

6

-697

362

3

1,232

10

-870

Interest income

75

0

40

0

35

Interest expense

-143

-1

-146

-1

3

Cost of sales
Gross margin

Profit before finance result
and income taxes

6

6

Other financial result

261

2

-260

-2

521

Finance result

7

193

1

-366

-3

559

Income taxes

8

-157

-1

-71

0

-86

398

3

795

7

-397

Equity owners of the parent(Net income)

399

3

792

7

-393

Non-controlling interests

-1

0

3

0

-4

Profit for the period
Attributable to:

€

€
€

Basic

0.51

1.01

-0.50

Diluted

0.51

1.01

-0.50

Earnings per share

9

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

2

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

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

1 January 31 March 2016

1 January 31 March 2015

398

795

-710

-496

Items that will not be reclassified to profit or loss:
Actuarial gains or losses on defined benefit plans
Actuarial gains or losses on defined benefit plans for investments
accounted for using the equity method
Tax on items that will not be reclassified to profit or loss

-3

-76

219

163

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

-247

335

Net change in fair value of cash flow hedges

3,543-7,861

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

98

316

Changes in other comprehensive income frominvestments accounted for using the equity method

-20

-111

Tax on items that will be reclassified to profit or loss

-1,075

2,433

Other comprehensive income, net of tax

1,805-5,297

Total comprehensive income of the period

2,203-4,502

2,207-4,483-4-19

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

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

3

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

Unaudited Condensed Interim IFRS Consolidated Statements of Financial Position
Note
AssetsNon-current assets
Intangible assets
Property, plant and equipment
Investments accounted for under the equity method
Other investments and other long-term
financial assets
Non-current other financial assets
Non-current other assets
Deferred tax assets
Non-current securities
Current assets
Inventories
Trade receivables
Current portion of other long-term financial assets
Current other financial assets
Current other assets
Current tax assets
Current securities
Cash and cash equivalents
Assets and disposal group of assets
classified as held for sale
Total assets

31 March 2016
In € million In %12,35816,905
1,197

11
15
1

12,555
17,193
1,326

12
16
1

-197
-288
-129

-2
-2
-10

12
14
15

2,735
1,659
2,240
6,330
9,621
53,045

3
2
2
6
9
49

2,492
1,096
2,166
6,759
9,851
53,438

2
1
2
7
9
50

243
563
74
-429
-230
-393

10
51
3
-6
-2
-1

32,295
7,563
272
1,278
2,914
920
1,657
6,711
53,610

29
7
0
1
3
1
2
6
49

29,051
7,877
178
1,402
2,819
860
1,788
7,489
51,464

27
7
0
1
3
1
2
7
48

3,244
-314
94
-124
95
60
-131
-778
2,146

11
-4
53
-9
3
7
-7
-10
4

2,735
109,390

2
100

1,779
106,681

2
100

956
2,709

54
3

778
9,361
-2,014
-246
7,879
-16
7,863

1
8
-2
0
7
0
7

785
9,800
-4,316
-303
5,966
7
5,973

1
9
-4
0
6
0
6

-7
-439
2,302
57
1,913
-23
1,890

-1
-4
-53
-19
32
-329
32

17
18
14
15

9,917
6,310
11,41915,093
1,787
44,526

9
6
10
14
2
41

9,871
6,335
14,03815,256
1,200
46,700

10
6
13
14
1
44

46
-25
-2,619-163
587-2,174

0
0
-19
-1
49
-5

17
18

4,754
5,241
11,529913
4,200
29,20855,845

4
5
10
1
4
27
51

5,209
2,790
11,763908
5,021
28,086
53,777

5
2
11
1
5
26
50

-455
2,451
-234
5
-821
1,122
2,068

-9
88
-2
1
-16
4
4

1,156
101,527
109,390

1
93
100

231
100,708
106,681

0
94
100

925
819
2,709

400
1
3

18

13
12
14
15

18
18

3

Non-controlling interests
16

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

Deviation
In € million In %

10
10
11

Total equity (1)Equity attributable to equity owners of the parent
Capital stockReserves
Accumulated other comprehensive income
Treasury shares

Liabilities
Non-current liabilities
Non-current provisions
Long-term financing liabilities
Non-current other financial liabilities
Non-current other liabilities
Deferred tax liabilities

31 December 2015
In € million In %

14
15

3

(1) As of 31 March 2016, the accumulated other comprehensive income, previously classified within equity relating to assets
and disposal groups classified as held for sale, amounts to € -72 million.
The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.
4

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

Unaudited Condensed Interim IFRS Consolidated Statements of Cash Flows
1 January 31 March 2016

1 January ­31 March 2015

Profit for the period attributable to equityowners of the parent (Net income)

399

792

(Loss) profit for the period attributable to non-controlling interests-1

3

Depreciation and amortization

512

525

Valuation adjustments

-406

66

76

-127

(In € million)

Note

Adjustments to reconcile profit for the period to cash (used for) operating activities

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

32

87

Results on disposals of non-current assets

-13

-59

Results of companies accounted for under the equity method

-20

-694

Change in current and non-current provisions

-88

-60

-57
-2,814-14-1,227-2,380

-708

-563

-505

Reimbursement from/ contribution to plan assets
Change in other operating assets and liabilities
Cash (used for) operating activities

18

Investment activities- Purchases of intangible assets, PPE- Proceeds fromdisposals of intangible assets, PPE- Acquisitions of subsidiaries and joint ventures (net of cash)

8

2

-118

-6

- Proceeds fromdisposals of subsidiaries (net of cash)-9-3- Payments for investments in associates and otherinvestments and long-termfinancial assets

-115

-32

- Proceeds fromdisposals of associates and otherinvestments and long-termfinancial assets

24

1,613

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

-60Change in securities

384

-508

Change in cash fromchanges in consolidation
Cash (used for) provided byinvesting activities

18

Financing activities
Change in long-termand short-termfinancing liabilities
Changes in capital and non-controlling interests
Share buyback
Cash provided byfinancing activities

18

Effect of foreign exchange rate changes on cash and cash equivalents
Net (decrease) increase of cash and cash equivalents

0

-11

-395

550

2,479

-27

2

37

-378

0

2,103

10

-110
-782

298
150

Cash and cash equivalents at beginning of period (1)

7,576

7,289

Cash and cash equivalents at end of period

6,794

7,439

Thereof presented as cash and cash equivalents

6,711

7,439

83

0

Thereof presented as part of disposal group of assets classified as held for sale(1) The cash and cash equivalents at the beginning of the period 2016 include € 87 million, which is presented as part of assets
of disposal groups classified as held for sale.
The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.

5

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

Unaudited Condensed Interim IFRS Consolidated Statements of Changes in Equity(In € million)
Balance at 1 January 2015
Profit for the period

Equityattributable
to equity ownersof the parent

Non-controllinginterests

7,061

18

Total
7,079

792

3

795

Other comprehensive income-5,275-22-5,297

Total comprehensive income-4,483-19-4,50237

037Capital increase
Share-based payment (IFRS 2)

21

0

21

Balance at 31 March 2015

2,636

-1

2,635

Balance at 1 January 2016

5,966

7

5,973

399

-1

398

Other comprehensive income

1,808

-3

1,805

Total comprehensive income

Profit for the period

2,207

-4

2,203

Capital increase

2

0

2

Equity transactions

38

-19

19

-358

0

-358

Change in treasury shares
Share-based payment (IFRS 2)
Balance at 31 March 2016

24

0

24

7,879

-16

7,863

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

6

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

Notes to the Unaudited Condensed Interim IFRS Consolidated Financial Statements as
at 31 March 2016
1. The Company
The accompanying Unaudited Condensed Interim IFRS Consolidated Financial Statements present theoperations of Airbus Group SE and its subsidiaries (the “Group”) legally seated in Amsterdam (current registeredoffice at Mendelweg 30, 2333 CS Leiden, The Netherlands), and are prepared and reported in Euros (“€ ”). On 28
May 2015, the legal form of the Group has changed from a Dutch public limited liability company (N.V.) to a
European company (SE) and is consistently subject to the laws of the Dutch Civil Code. The Group’s corebusiness is the manufacturing of commercial aircraft, civil and military helicopters, commercial space launchvehicles, missiles, military aircraft, satellites, defence systems and defence electronics and rendering of services
related to these activities. The Unaudited Condensed Interim IFRS Consolidated Financial Statements for thethree-month period ended 31 March 2016 were authorized for issue by the Airbus Group Board of Directors on 27
April 2016.

2. Accounting policies
The Unaudited Condensed Interim Consolidated Financial Statements have been prepared in accordance with
International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board(“IASB”) as endorsed by the European Union (“EU”) as at 31 March 2016.
These Unaudited Condensed Interim Consolidated Financial Statements are prepared in compliance with IAS 34
and should be read in conjunction with Airbus Group’s Consolidated Financial Statements as of 31 December
2015. Airbus Group’s accounting policies and methods are unchanged compared to 31 December 2015.
Use of estimates and judgment
In preparing the Group’s Unaudited Condensed Interim Consolidated Financial Statements, management makes
assumptions and estimates. The underlying assumptions used for the main estimates are similar to thosedescribed in the Group’s Consolidated Financial Statements as of 31 December 2015. These estimates arerevised if the underlying circumstances have evolved or in light of new information.
The only exception is the estimate of income tax liabilities which is determined in the interim financial statements
using the estimated average annual effective income tax rate applied to the pre-tax income of the interim period.

7

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

3. Acquisitions and disposals
Acquisitions
On 9 March 2016, Airbus Division acquired 100% of the shares of the Navtech Inc. Group (“Navtech”), a
leading global provider of flight operations solutions. The technical allocation of the purchase price will be
performed starting in the second quarter 2016. Airbus Group has recognised an amount of € 118 million in
goodwill as a preliminary allocation.
Navtech provides aviation services with a suite of flight operations products, aeronautical charts, navigation datasolutions, flight planning, aircraft performance and crew planning solutions. Navtech generates annual revenues
around $40 million and employs over 250 employees, mainly based in Waterloo, Canada and in Hersham andCardiff, UK.
Disposals
On 17 June 2015, Airbus Division signed an agreement with Singapore-based ST Aerospace Ltd. (“STA”) to offer
passenger-to-freighter (“P2F”) conversion solutions for its A320 and A321 aircraft. Elbe Flugzeugwerke’s(“EFW”), Dresden (Germany), assets and liabilities were classified as disposal groups held for sale as of 31
December 2015. On 4 January 2016, STA acquired an additional 20% of the shares by way of a contribution inkind and a capital increase to EFW, and consequently, Airbus lost the control of EFW. Airbus retains 45% of theshares of EFW with significant influence. Airbus has recognised a € 19 million gain during the period (reported asother income).
Assets and disposal groups classified as held for sale
As of 31 March 2016, Airbus Group accounted for assets and disposal group of assets classified as held forsale in the amount of € 2,735 million (prior year-end: € 1,779 million). Disposal group of liabilities classified asheld for sale as of 31 March 2016 amount to € 1,156 million (prior year-end: € 231 million). The assets anddisposal groups classified as held for sale comprise the following transactions:•

Dassault aviation shares: the carrying amount of € 1,253 million was classified as held for sale as of 31
March 2015. Airbus Group still intends to pursue market opportunities to sell the remainder of thisinvestment (reported in “Others/ HQ/ Conso.” segment).

•

Business communications entities: a Share Purchase Agreement was signed on 17 December 2015
between Airbus DS Holding SAS (France), Astrium International Holdings B.V. (as beneficiaries) and abuyer, is subject to closing conditions (reported in Airbus Defence and Space Division).

•

Defence electronics entities: on 18 March 2016, Airbus Group reached an agreement with affiliates of
KKR & Co. L.P. (the acquirer) to sell its defence electronics business, a leading global provider ofmission-critical sensors, integrated systems and services for premium defence and security applications
mainly based in Ulm (Germany). Such divestment is part of the strategic review of the Airbus Defence
and

Space

business

portfolio.

Thetransactionisexpected

to

close

withinthenext

12 months. The assets and liabilities relative to this disposal group have been classified as held for saleas of 31 March 2016.

8

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

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

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

Airbus — Development, manufacturing, marketing and sale of commercial jet aircraft of more than 100
seats; aircraft conversion and related services; development, manufacturing, marketing and sale of regional
turboprop aircraft and aircraft components.

•

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

•

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

The following table presents information with respect to the Group’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 other activities not allocableto the reportable segments, combined together with consolidation effects, are disclosed in the column “Others/
HQ/ Conso.”.

9

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

Business segment information for the three-month period ended 31 March 2016:(In € million)

AirbusAirbusHelicopters

Total revenues

8,668

1,158

Internal revenues

AirbusDefenceand Space

2,534

Total
Others/segments HQ/ Conso.

12,36066

Consolidated
12,426

-67

-149

-26

-242

-1

-243

Revenues

8,601

1,009

2,508

12,11865

12,183

Research anddevelopment expenses

-380

-63

-66

-509

-38

-547

EBIT pre-goodwill imp.
and exceptionals

290

33

90

413

-48

365

Impairment anddisposal of goodwill

0

0

0

0

0

0

Exceptionals

-1

0

-2

-3

0

-3

289

33

88

410

-48

362

Profit before financeresult and income taxes
Finance result

193

Income taxes-157

Profit for the period

398

Business segment information for the three-month period ended 31 March 2015:
AirbusDefenceand Space(In € million)

AirbusAirbusHelicopters

Total revenues

8,565

1,285

2,603

12,45340

12,493

Internal revenues

-194

-141

-79

-414

-1

-415

Revenues

8,371

1,144

2,524

12,03939

12,078

Research anddevelopment expenses

-548

-70

-66

-684

-17

-701

EBIT pre-goodwill imp.
and exceptionals

419

52

133

604

637

1,241

Impairment anddisposal of goodwill

0

0

0

0

0

0

Exceptionals

-6

0

-3

-9

0

-9

413

52

130

595

637

1,232

Profit before financeresult and income taxes
Finance result

Total
Others/segments HQ/ Conso.

Consolidated-366

Income taxes-71

Profit for the period

795

10

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

6. Revenues, gross margin and profit before finance result and income taxes
Revenues of € 12,183 million (first quarter 2015: € 12,078 million) increased by € +105 million, mainly at Airbus(€ +103 million), as lower volumes were compensated by a favourable foreign exchange hedging impact.
The gross margin decreased by € -265 million to € 1,443 million compared to € 1,708 million in the first quarter2015. It reflects mainly lower deliveries and a negative foreign exchange impact in Airbus. The gross margin rate
decreased from 14.1% to 11.8%.
In the first three months of 2016, Airbus has delivered 4 A350 XWB aircraft.
The industrial ramp-up preparation is underway and associated risks will continue to be closely monitored in linewith the schedule, aircraft performance and overall cost envelope, as per customer’s commitment. Despite theprogress made, challenges are increasing with the ramp-up acceleration.
2 A400M aircraft were delivered during the first quarter 2016.
Industrial efficiency and military capability remain a challenge during the ramp up phase. Management is working
with the customers to agree a schedule of military capability enhancement as well as reviewing the escalation
formulae. The mission capability roadmap (including the achievement of the respective milestones) has beenpresented to the customers and gradual certification of new development batches will start during the second
quarter of this year.
Following the EASA Airworthiness Directive linked to the Propeller Gear Box on the engine, a thorough technicaland industrial evaluation has been launched to secure both short and long-term solutions.
The expected impact on aircraft in service and how they can be supported, implications on the delivery scheduleand ongoing discussions with customers are under assessment.
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 and 1 January 2016, respectively. SOC 2 fell due end December 2015 and is still in the
12-month grace period. Management judges that it is highly unlikely that any of these termination rights will be
exercised.
Overall, the cost at completion assessment will need to be adapted accordingly, but at this stage there is not a
sufficiently mature view of the technical, commercial and industrial consequences and their potential impact on
the financial statements, which could be significant.
The A400M programme remains in a critical phase and the associated risks will continue to be closely monitored.
The profit before finance result and income taxes decreased by € -870 million to € 362 million compared to€ 1,232 million in the first three months 2015, mainly driven by the decrease in share of profit from investments
under the equity method and other income from investments, partly compensated by a decrease in R&D
expenses.
Research and development expenses decreased € +154 million to € -547 million compared to € -701 million in
the first three months 2015, primarily reflecting lower R&D activity in the A350 XWB programme at Airbus.
Share of profit from investments under the equity method and other income from investments decreasedby € -697 million to € 32 million compared to € 729 million in the first three months 2015, which included a net gainof € 674 million from the partial sale of Dassault Aviation shares.

11

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

7. Finance result
Finance result improved by € +559 million to € 193 million compared to € -366 million in the first three months
2015. This is mainly related to a positive impact from revaluation of financial instruments of € +334 million(€ 185 million in the first three months 2016 compared to € -149 million in the first three months 2015, respectively)
and to a positive impact from foreign exchange valuation of monetary items of € +215 million (€ 140 million in thefirst three months 2016 compared to € -75 million in the first three months 2015, respectively).

8. Income tax
The income tax expense of € -157 million (first quarter 2015: € -71 million) corresponds to an effective income tax
rate of 28.3% (first quarter 2015: 8.2%). In the first quarter 2015, the effective tax rate was impacted by the sale ofshares of Dassault Aviation taxed at a reduced rate.

9. Earnings per share

1 January 31 March 2016

1 January 31 March 2015

Profit for the period attributable to equity owners of the parent(Net income)€ 399 million€ 792 million

Weighted average number of ordinary shares outstanding

776,552,505

784,653,992€ 0.51€ 1.01

Basic earnings per share

Basic earnings per share

Diluted earnings per share – The Group’s categories of dilutive potential ordinary shares are stock options,share-settled performance units for Executive Committee members relating to long-term incentive plans and theconvertible bond issued on 1 July 2015. During the first quarter 2016, the average price of Airbus Group shares
exceeded the exercise price of the stock option plans as well as the share-settled performance units andtherefore 291,330 shares (in the first three months 2015: 798,355 shares) were considered in the calculation ofdiluted earnings per share. The dilutive effect of the convertible bond was also considered in the calculation ofdiluted earnings per share in the first quarter 2016, by adding back € 2 million of interest expense to the profit forthe period attributable to equity owners of the parent (in the first three months 2015: no adjustment) and byincluding 5,022,990 of dilutive potential ordinary shares.

Diluted earnings per share
Profit for the period attributable to equity owners of the parent(Net income)(1)

Weighted average number of ordinary shares outstanding (diluted)
Diluted earnings per share(1) Dilution assumes conversion of all potential ordinary shares

12

1 January 31 March 2016

1 January 31 March 2015

€ 401 million€ 792 million

781,866,825

785,452,347€ 0.51€ 1.01

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

10. Intangible assets and property, plant and equipment
Intangible assets decreased by € -197 million to € 12,358 million (prior year-end: € 12,555 million) mainly due tothe reclassification of Defence electronics entities to disposal groups classified as held for sale, partiallycompensated by the impact related to the acquisition of Navtech (see Note 3 “Acquisitions and disposals”).
Intangible assets mainly relate to goodwill of € 9,799 million (prior year-end: € 9,907 million).
The annual impairment tests were performed in the fourth quarter 2015 and led to no impairment charge.
Property, plant and equipment decreased by € -288 million to € 16,905 million (prior year-end: € 17,193 million)
mainly at Airbus Defence and Space (€ -208 million), primarily driven by the entities reclassified to disposal groups
classified as held for sale (see Note 3 “Acquisitions and disposals”). Property, plant and equipment also includes
leased assets of € 130 million (prior year-end: € 118 million) and investment property amounting to € 66 million(prior year-end: € 66 million).

11. Investments accounted for under the equity method
Investments accounted for under the equity method of € 1,197 million (prior year-end: € 1,326 million) include
the equity investments in MBDA, Atlas Group and ATR.

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

31 March 201631 December 2015

Other investments

1,198

1,232

Other long-term financial assets

1,537

1,260

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

2,735

2,492

272

178

3,007

2,670

Current portion of other long-term financial assets
Total

Other long-term financial assets mainly comprise the Group’s aircraft financing activities.

13. Inventories
Inventories of € 32,295 million (prior year-end: € 29,051 million) increased by € +3,244 million. This is mainly
related to Airbus (€ +3,093 million) and Airbus Helicopters (€ +288 million). In Airbus, the increase is principally
due to work in progress mainly associated with A350 XWB ramp-up and A320 programme.
Inventories are presented net of the respective portion of the contract loss provision (see Note 17 “Provisions”).

13Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

14. Other financial assets and other financial liabilities
Composition of other financial assets:(In € million)
Positive fair values of derivative financial instruments
Others31 March 201631 December 2015

1,425

931

234

165

Total non-current other financial assets

1,659

1,096

Receivables from related companies

509

616

Positive fair values of derivative financial instruments

296

349

Others473

437

Total current other financial assets

1,278

1,402

Total

2,937

2,498

31 March 201631 December 2015

European Governments refundable advances

6,573

6,716

Liabilities for derivative financial instruments

4,161

6,703

685

619

11,41914,038Composition of other financial liabilities:(In € million)

OthersTotal non-current other financial liabilities
European Governments refundable advances

615

570

Liabilities for derivative financial instruments

2,958

3,884

627

567

Total current other financial liabilities

4,200

5,021

Total

15,61919,059OthersThe liabilities for derivative financial instruments have decreased significantly as a result of the devaluation of the
US dollar versus the euro associated with the mark to market valuation of the hedge portfolio.

15. Other assets and other liabilities
Composition of other assets:(In € million)
Prepaid expenses
Others31 March 201631 December 2015

2,130

2,051

110

115

Total non-current other assets

2,240

2,166

VAT receivables

1,652

1,450

Prepaid expenses

797

663

465

706

Total current other assets

Other

2,914

2,819

Total

5,154

4,985

14

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

Composition of other liabilities:(In € million)

31 March 201631 December 2015

14,376

14,472

469

521

248

263

15,093

15,25624,342

23,612Other liabilities
Customer advance payments
OthersDeferred income
Total non-current other liabilities
Other liabilities
Customer advance payments

957

885

2,884

2,540

Deferred income

1,025

1,049

Total current other liabilities

29,20828,086

Total

44,301

43,342

Tax liabilities (excluding income tax)
Others

16. Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts to€ 7,879 million (prior year-end: € 5,966 million) representing an increase of € +1,913 million. This is due to anincrease in other comprehensive income of € +1,808 million, principally related to the mark to market revaluationof the hedge portfolio, and a net income for the period of € +399 million. This was partly offset by the sharebuyback programme of € 358 million.
The total number of shares issued is 778,198,822 and 785,344,784 as of 31 March 2016 and 31 December
2015, respectively. The Group’s shares are exclusively ordinary shares with a par value of € 1.00.
During the first quarter 2016, the number of treasury stock held by Airbus Group decreased to 910,705 comparedto 1,474,057 as of 31 December 2015. No shares were sold back to the market, and 7,238,962 shares werecancelled (in the first three months 2015: 0 shares).
In the first three months 2016, the Group issued 93,000 new shares due to the exercise of stock options (in thefirst three months 2015: 1,134,303 shares).
Non-controlling interests decreased to € -16 million (prior year-end: € 7 million). This decrease results mainly
from the impact of the change in consolidation method of EFW (see Note 3 “Acquisitions and disposals”).

17. Provisions
Provisions are comprised of the following:(In € million)

31 March 201631 December 2015

Provisions for pensions

8,023

7,615

Other provisions

6,648

7,465

Total

14,671

15,080

Thereof non-current portion

9,917

9,871

Thereof current portion

4,754

5,209

Among other effects, provisions for pensions increased due to a decrease of the discount rates for the various
pension schemes of the Group (France: from 2.5% to 2.0% and Germany: from 2.4% to 1.8%).

15

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

The decrease in other provisions is mainly due to the reclassification to disposal group of liabilities classified asheld for sale relating to Defence electronics entities (see Note 3 “Acquisitions and disposals”).
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 andcircumstances. 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 of revenue, profit or use).
However, in view of overall commercial relationships, contract adjustments may occur, and be considered on acase by case basis.

18. Net cash and cash flows
Composition of net cash:(In € million)

31 March 201631 December 2015

Cash and cash equivalents

6,711

7,489

Current securities

1,657

1,788

Non-current securities

9,621

9,851

Short-term financing liabilities-5,241-2,790Long-term financing liabilities-6,310-6,335

Total

6,438

10,003

Cash flows
Cash (used for) operating activities decreased by € -1,672 million to € -2,380 million (first quarter 2015: € -708
million). Gross cash flow from operations (before changes in other operating assets and liabilities) of € +434
million decreased compared to the prior period (first quarter 2015: € +519 million). Changes in other operating
assets and liabilities amount to € -2,814 million (first quarter 2015: € -1,227 million) mainly due an increase ininventories, partly compensated by higher advance payments received.
Cash (used for) provided by investing activities amounts to € -395 million (first quarter 2015: € +550 million).
This mainly comprises purchases of intangible assets and property, plant and equipment of € -563 million (firstquarter 2015: € -505 million), and the impact of the acquisition of Navtech (see Note 3 “Acquisitions anddisposals”). This was partly compensated by a decrease of investments in securities of € +384 million (first quarter
2015: € -508 million).
Cash provided by financing activities increased by € +2,113 million to € +2,123 million (first quarter 2015: € +10
million). This mainly comprises changes in long-term and short-term financing liabilities of € +2,479 million (firstquarter 2015: € -27 million), in part offset by the share buyback programme of € -378 million (first quarter 2015:€ 0 million).
Securities
Non-current securities with a remaining maturity of more than one year decreased by € -230 million to € 9,621
million (prior year-end: € 9,851 million). The movement is related to the cash management policy of the Group.
Current securities with a remaining maturity of one year or less decreased by € -131 million to € 1,657 million(prior year-end: € 1,788 million).

16

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

Financing liabilities
Composition of financing liabilities:(In € million)

31 March 201631 December 2015

Bonds

3,506

3,443

Liabilities to financial institutions

2,045

2,113

Loans

394

403

Liabilities from finance leases

364

375

1

1

Long-term financing liabilities

6,310

6,335

Bonds

2,938

1,523

Liabilities to financial institutions

1,048

349

229

255

OthersLoans
Liabilities from finance leases

12

13

Others

1,014

650

Short-term financing liabilities

5,241

2,790

The increase in financing liabilities is mainly related to new commercial paper programmes totalling € +1,421
million included in short-term bonds, and to securities lending activity € +730 million included in liabilities tofinancial institutions.

19. Financial instruments
Composition of derivative financial instruments:(In € million)
Non-current positive fair values
Current positive fair values
Total positive fair values of derivative financial instruments

31 March 201631 December 2015

1,425

931

296

349

1,721

1,280

Non-current liabilities-4,161-6,703Current liabilities-2,958-3,884

Total liabilities for derivative financial instruments-7,119-10,587

Total net fair value of derivative financial instruments-5,398-9,307The volume of hedged US dollar-contracts was US$100.6 billion as at 31 March 2016 (prior-year end US$101.9
billion). The US dollar spot rate was 1.14 US$/€ and 1.09 US$/€ at 31 March 2016 and at 31 December 2015,
respectively. The average US dollar hedge rate for the hedge portfolio of the Group decreased to 1.27 US$/€ as
at 31 March 2016 compared to 1.28 US$/€ as at 31 December 2015.

17

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

Carrying amounts and fair values
Fair values of financial instruments have been determined with reference to available market information at theend of the reporting period and the valuation methodologies as described in detail in Note 35.2 to the 2015
Consolidated Financial Statements. For the first three months 2016, Airbus Group has applied the same
methodologies for the fair value measurement of financial instruments.
Carrying amount is a reasonable approximation of fair value for all classes of financial instruments listed in thefirst table of Note 35.2 to the 2015 Consolidated Financial Statements, with the exception of:

31 March 2016
(In € million)

31 December 2015

Book value

Fair value

Book value

Fair value

Issued bonds and commercial papers-6,444-6,682-4,966-5,091

Liabilities to financial institutions
and other financing liabilities-4,731-4,761-3,771-3,822Financing liabilities

As explained in Note 35.2 to the 2015 Consolidated Financial Statements, no fair value can be determined forcertain unlisted equity investments and European Governments refundable advances.

The following table allocates the financial assets and liabilities measured at fair value to the three levels of the fair(1)value hierarchy :31 March 2016
(In € million)

31 December 2015

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

794

0

0

794

828

0

0

828

0

1,686

35

1,721

0

1,234

46

1,280

11,2744

0

11,278

11,474165

0

11,639
6,071

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

3,073

2,352

0

5,425

3,941

2,130

0

15,141

4,042

35

19,21816,2433,529

46

19,818Derivative instruments

0-7,1190-7,1190-10,5870-10,587

Other liabilities

0

0

-36

-36

0

0

-74

-74

0

-7,119-36-7,1550-10,587-74-10,661

Total
Financial liabilities measured
at fair value

Total(1) The fair value hierarchy consists of the following levels:- Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities;- Level 2: inputs other than quoted prices that are observable for the asset or liability, either directly (i.e. as prices) orindirectly (i.e. derived from prices);- Level 3: inputs for the asset or liability that are not based on observable market data.

18

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

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

Financial assets(In € million)
Balance at 1 January 2015
Profit or loss
Other comprehensive income
Settlements
Balance at 31 March 2015
Balance at 1 January 2016
Profit or loss
Settlements
Balance at 31 March 2016

Financial liabilites

WrittenCommodityswap
Derivative put options on
Other
Earn-outagreements instruments NCI interests agreements liabilities
2
2
-127
-10
-137
9
9
0
0
0
0
0
0
0
0
0
0
0
0
0
11
11
-127
-10
-137
46
-3
-8
35

46
-3
-8
35

-64
0
38
-26

-10
0
0
-10

-74
0
38
-36

For a description of the valuation techniques, inputs and process used in the fair value measurement of thesefinancial instruments and a description of sensitivity analysis performed refer to Note 35.2 of the Consolidated
Financial Statements. There is no material difference between the outcome of sensitivity analysis performed
at 31 March 2016, compared to the outcome disclosed in the year-end financial statements.

20. Litigation and claims
Airbus Group is involved from time to time in various legal and arbitration proceedings in the ordinary course of its
business, the most significant of which are described below. Other than as described below, Airbus Group is notaware 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 in a dispute with other parties, the Group limits its disclosures to the nature of the dispute.
WTO
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 aparallel WTO case against the US in relation to its subsidies to Boeing. On 19 December 2014, the European
Union requested WTO consultations on the extension until the end of 2040 of subsidies originally granted by theState of Washington to Boeing and other US aerospace firms until 2024.
On 1 June 2011, the WTO adopted the Appellate Body’s final report in the case brought by the US assessing
funding to Airbus from European governments. On 1 December 2011, the EU informed the WTO that it had taken
appropriate steps to bring its measures fully into conformity with its WTO obligations, 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.

19Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

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

allegations,AirbusGroup

conducted

internal

auditsandretained

PricewaterhouseCoopers (“PwC”) to conduct an independent review relating to GPT Special 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 conducted by 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 tosuggest that improper payments were made by GPT. In August 2012, the SFO announced that it had opened aformal criminal investigation into the matter. Airbus Group is cooperating fully with the authorities.
Eurofighter Austria
In March 2012, the German public prosecutor, following a request for assistance by the Austrian publicprosecutor, launched a criminal investigation into alleged bribery, tax evasion and breach of trust by current andformer employees of EADS Deutschland GmbH (renamed on 1 July 2014 Airbus Defence and Space GmbH) andEurofighter Jagdflugzeug GmbH as well as by third parties relating to the sale of Eurofighter aircraft to Austria in
2003. After having been informed of the investigation in 2012, Airbus Group retained the law firm Clifford Chance
to conduct a fact finding independent review. Upon concluding its review, Clifford Chance presented its fact
finding report to Airbus Group in December 2013. Airbus Group provided the report to the public prosecutors inGermany. Airbus Group is cooperating fully with the authorities.
Other investigations
Following the announcement of investigations by the Romanian authorities 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 in relation to this project, aproject in Saudi Arabia and a project of Tesat-Spacecom GmbH & Co. KG. The public prosecutor in Germany haslaunched administrative proceedings in the context of those investigations against Airbus Defence and SpaceGmbH and Tesat-Spacecom GmbH & Co. KG. Airbus Group is cooperating fully with the authorities.
Public prosecutors in Greece and Germany launched investigations into a current employee and former managing
directors and employees of Atlas Elektronik GmbH, a joint company of ThyssenKrupp and Airbus Group, on
suspicion of bribing foreign officials and tax evasion. The public prosecutor in Germany has launched anadministrative proceeding for alleged organisational and supervisory shortfalls. The authorities in Greece havelaunched civil claims against Atlas Elektronik GmbH. In 2015 the public prosecutor´s office in Bremen launchedanother 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 is cooperating fully with the authorities and in consultation with the public prosecutor is assisting thefurther clarification of the matter through its own internal investigation.
In the context of its internal compliance improvement programme, the Group discovered mistakes and omissions
relating to information provided in respect to consultants and other third parties in applications for export credit
financing for Airbus customers and as a result has informed the relevant UK authorities. Some Export Credit
Agency (ECA) financing has been temporarily suspended. The Group is cooperating with the relevant ECAs to
resolve this issue as soon as possible and hopes to obtain financing or refinancing in the near future.

20

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2016

Commercial disputes
In May 2013, the Group has been notified of a commercial dispute following the decision taken by the Group tocease a partnership 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 thisdispute and the outcome of the proceedings cannot be fully assessed at this stage. The arbitration is not expected
to be completed before the end of 2016.
In the course of another commercial dispute, the Group received a statement of claim alleging liability forrefunding part of the purchase 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 iscurrently the subject of arbitration.
In light of regulatory investigations and commercial disputes, including those discussed above, the Group hasdetermined 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 withrespect to its engagement of consultants and other third parties, in particular in respect of sales support activities,
and is conducting enhanced due diligence as a pre-condition for future or continued engagement andcorresponding payment. The Group believes that these enhancements to its controls and practices best position it
for the future, particularly in light of advancements in regulatory standards. The Group cannot exclude that thesechanges lead to additional commercial disputes or other consequences in the future.

21. Number of employees
The number of employees as at 31 March 2016 is 135,801 as compared to 136,574 as at 31 December 2015.

22. Subsequent events
There are no significant events after the reporting date.

21