REGISTRATIONDOCUMENT2017

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Airbus SE (the “Company”) is a European public company (Societas Europaea), with its seat in Amsterdam, The Netherlands, which
is listed in France, Germany and Spain. The applicable regulations with respect to public information and protection of investors, aswell as the commitments made by the Company to securities and market authorities, are described in this Registration Document(the “Registration Document”).
In 2017, there were no changes to the segment reporting. Nevertheless as a result of the relabelling to a single Airbus brand, theCompany together with its subsidiaries is referred to as “Airbus” and no longer the Group. Consequently, the segment formerly known
as Airbus is referred to as “Airbus Commercial Aircraft” for the purpose of 2017 financial reporting. See “— Management’s Discussion
and Analysis of Financial Condition and Results of Operations — 2.1.1.2 Reportable Business Segments”.
In addition to historical information, this Registration Document includes forward-looking statements. The forward-looking statements
are generally identified by the use of forward-looking words, such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan”,“project”, “predict”, “will”, “should”, “may” or other variations of such terms, or by discussion of strategy. These statements relate to
the Company’s future prospects, developments and business strategies and are based on analyses or forecasts of future results andestimates of amounts not yet determinable. These forward-looking statements represent the view of the Company only as of thedates they are made, and the Company disclaims any obligation to update forward-looking statements, except as may be otherwise
required by law. The forward-looking statements in this Registration Document involve known and unknown risks, uncertainties andother factors that could cause the Company’s actual future results, performance and achievements to differ materially from those
forecasted or suggested herein. These include changes in general economic and business conditions, as well as the factors
described under “Risk Factors” below.
This Registration Document was prepared in accordance with Annex 1 of EC Regulation No. 809 / 2004, filed in English
with, and approved by, the Autoriteit Financiële Markten (the “AFM”) on 28 March 2018 in its capacity as competentauthority under the Wet op het financieel toezicht (as amended) pursuant to Directive 2003 / 71 / EC. This Registration
Document may be used in support of a financial transaction as a document forming part of a prospectus in accordancewith Directive 2003 / 71 / EC only if it is supplemented by a securities note and a summary approved by the AFM.

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Registration Documentl 2017 l
Risk Factors ..................................................................................................................................................... 4
1. Information on Airbus Activities .............................................................................................................. 17
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations ...... Error!
Bookmark not defined.
3. General Description of the Company and its Share Capital ................................................................. 84
4. Corporate Governance ............................................................................................................................ 103
5. Entity Responsible for the Registration Document ............................................................................. 150

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Risk Factors
The Company is subject to many risks and uncertainties that may affect its financial
performance. The business, results of operations or financial condition of the Company
could be materially adversely affected by the risks described below. These are notthe only risks the Company faces. Additional risks and uncertainties not presently known
to the Company or that it currently considers immaterial may also impair its businessand operations.

1.

Financial Market Risks

Global Economic Concerns
As a global company, the Company’s operations and performance depend significantly on market and economic conditions in Europe,
the US, Asia and the rest of the world. Market disruptions and significant economic downturns may develop quickly due to, among otherthings, crises affecting credit or liquidity markets, regional or global recessions, sharp fluctuations in commodity prices (including oil),currency exchange rates or interest rates, inflation or deflation, sovereign debt and bank debt rating downgrades, restructurings ordefaults, or adverse geopolitical events (including the impact of Brexit, discussed below, US policy and elections in Europe). Any suchdisruption or downturn could affect the Company’s activities for short or extended periods and have a negative effect on the Company’s
financial condition and results of operations.
On 29 March 2017, the UK triggered article 50 of the Lisbon Treaty, the mechanism to leave the European Union (“Brexit”), before
having achieved a roadmap for the complex negotiations. Although the terms of the UK’s post-Brexit relationship with the EU are still
unknown, the Company may be affected by potentially divergent national laws and regulations between the EU and the UK. This may
include greater restrictions on the importing and exporting of goods and services between the UK and EU countries in which theCompany operates along with costly new tariffs and increased regulatory and legal complexities. The free movement of people andskilled labour may also be limited by new border controls.
The administration of US President Donald Trump has introduced greater uncertainty with respect to US tax and trade policies, tariffs
and government regulations affecting trade between the US and other countries.
Although the impact of these geopolitical events cannot reasonably be assessed, the consequences could have a negative effect on the
Company’s financial condition and results of operations.
If economic conditions were to deteriorate, or if more pronounced market disruptions were to occur, there could be a new or incremental
tightening in the credit markets, low liquidity, and extreme volatility in credit, currency, commodity and equity markets. This could have anumber of effects on the Company’s business, including:•requests by customers to postpone or cancel existing orders for aircraft (including helicopters) or decisions by customers to review
their order intake strategy due to, among other things, lack of adequate credit supply from the market to finance aircraft purchases
or change in operating costs or weak levels of passenger demand for air travel and cargo activity more generally;•an increase in the amount of sales financing that the Company must provide to its customers to support aircraft purchases, thereby
increasing its exposure to the risk of customer defaults despite any security interests the Company might have in the underlying
aircraft;•variations in public spending for defence, homeland security and space activities;•

financial instability, inability to obtain credit or insolvency on the part of key suppliers and subcontractors, thereby impacting theCompany’s ability to meet its customer obligations in a satisfactory and timely manner;•continued de-leveraging as well as mergers, rating downgrades and bankruptcies of banks or other financial institutions, resulting ina smaller universe of counterparties and lower availability of credit, which may in turn reduce the availability of bank guarantees
needed by the Company for its businesses or restrict its ability to implement desired foreign currency hedges;•

default of investment or derivative counterparties and other financial institutions, which could negatively impact the Company’streasury operations including the cash assets of the Company; and•decreased performance of Airbus’ cash investments due to low and partly negative interest rates.

The Company’s financial results could also be negatively affected depending on gains or losses realised on the sale or exchange offinancial instruments; impairment charges resulting from revaluations of debt and equity securities and other investments; interest rates;
cash balances; and changes in fair value of derivative instruments. Increased volatility in the financial markets and overall economic
uncertainty would increase the risk of the actual amounts realised in the future on the Company’s financial instruments differingsignificantly from the fair values currently assigned to them.

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In the Commercial Aircraft activities, revision clauses in sales contracts and in supplier contracts can be based on different indexes andtherefore can evolve differently.

Foreign Currency Exposure
Airbus is exposed to certain price risks such as foreign exchange rate as well as interest rate risks, changes in commodity prices and in
the price of its own stocks. Adverse movements of these prices may jeopardise Airbus’ profitability if not hedged. Airbus intends togenerate profits only from its operations and not through speculation on the development of such prices. Airbus uses hedging strategies
to manage and minimise the impact of such price fluctuations on its profits, including foreign currency derivative contracts, interest rateand equity swaps and other non-derivative financial assets or liabilities denominated in a foreign currency.
The major part of its hedging activities is devoted to foreign exchange risks, as a significant portion of the Company’s revenues isdenominated in US dollars, while a major portion of its costs is incurred in euro, and to a lesser extent, in pounds sterling. Consequently,
to the extent that the Company does not use financial instruments to hedge its exposure resulting from this foreign currency mismatch,
its profits will be affected by market changes in the exchange rate of the US dollar against these currencies. The Company has
therefore implemented a long-term hedging portfolio to help secure the rates at which a portion of its future US dollar-denominatedrevenues (arising primarily at Airbus) are converted into euro or pound sterling.
There are complexities inherent in determining whether and when foreign currency exposure of the Company will materialise, inparticular given the possibility of unpredictable revenue variations arising from order cancellations, postponements or delivery delays.
The Company may also have difficulty in fully implementing its hedging strategy if its hedging counterparties are unwilling to increase
derivatives risk limits with the Company, and is exposed to the risk of non-performance or default by these hedging counterparties. The
exchange rates at which the Company is able to hedge its foreign currency exposure may also deteriorate, as the euro could appreciate
against the US dollar for some time as has been the case in the past and as higher capital requirements for banks result in higher credit
charges for uncollateralised derivatives. Accordingly, the Company’s foreign currency hedging strategy may not protect it fromsignificant changes in the exchange rate of the US dollar to the euro and the pound sterling, in particular over the long term, which could
have a negative effect on its financial condition and results of operations. In addition, the portion of the Company’s US dollardenominated revenues that is not hedged in accordance with the Company’s hedging strategy will be exposed to fluctuations in
exchange rates, which may be significant.
Currency exchange rate fluctuations in currencies other than the US dollar in which the Company incurs its principal manufacturing
expenses (mainly the euro) may affect the ability of the Company to compete with competitors whose costs are incurred in othercurrencies. This is particularly true with respect to fluctuations relative to the US dollar, as many of the Company’s products and those of
its competitors (e.g., in the defence export market) are priced in US dollars. The Company’s ability to compete with competitors may beeroded to the extent that any of the Company’s principal currencies appreciates in value against the principal currencies of suchcompetitors.
The Company’s consolidated revenues, costs, assets and liabilities denominated in currencies other than the euro are translated into
the euro for the purposes of compiling its financial statements. Changes in the value of these currencies relative to the euro will
therefore have an effect on the euro value of the Company’s reported revenues, costs, earnings before interest and taxes (“EBIT”),
other financial results, assets, liabilities and equity.
See “— Management’s Discussion and Analysis of Financial Condition and Results of Operations — 2.1.7 Hedging Activities” for a
discussion of the Company’s foreign currency hedging strategy. See “— Management’s Discussion and Analysis of Financial Condition
and Results of Operations — 2.1.2.3 Accounting for Hedged Foreign Exchange Transactions in the Financial Statements” for asummary of the Company’s accounting treatment of foreign currency hedging transactions.

Sales Financing Arrangements
In support of sales, the Company may agree to participate in the financing of selected customers. As a result, the Company has aportfolio of leases and other financing arrangements with airlines and other customers. The risks arising from the Company’s sales
financing activities may be classified into two categories: (i) credit risk, which relates to the customer’s ability to perform its obligations
under a financing arrangement, and (ii) aircraft value risk, which primarily relates to unexpected decreases in the future value of aircraft.
Measures taken by the Company to mitigate these risks include optimised financing and legal structures, diversification over a numberof aircraft and customers, credit analysis of financing counterparties, provisioning for the credit and asset value exposure, and transfersof exposure to third parties. No assurances may be given that these measures will protect the Company from defaults by its customers
or significant decreases in the value of the financed aircraft in the resale market.*
The Company’s sales financing arrangements expose it to aircraft value risk, because it generally retains security interests in aircraft forthe purpose of securing customers’ performance of their financial obligations to the Company, and/or because it may guarantee a
portion of the value of certain aircraft at certain anniversaries from the date of their delivery to customers. Under adverse market
conditions, the market for used aircraft could become illiquid and the market value of used aircraft could significantly decrease below
projected amounts. In the event of a financing customer default at a time when the market value for a used aircraft has unexpectedly
decreased, the Company would be exposed to the difference between the outstanding loan amount and the market value of the aircraft,
net of ancillary costs (such as maintenance and remarketing costs, etc.). Similarly, if an unexpected decrease in the market value of agiven aircraft coincided with the exercise window date of an asset value guarantee with respect to that aircraft, the Company would be
exposed to losing as much as the difference between the market value of such aircraft and the guaranteed amount, though such*

Unless otherwise indicated, EBIT figures presented in this report are Earning before Interest and Taxes. It is identical to Profit before financecost and income taxes as defined by IFRS Rules.

AIRBUS REGISTRATION DOCUMENT 2017 -5amounts are usually capped. The Company regularly reviews its exposure to asset values and adapts its provisioning policy inaccordance with market findings and its own experience. However, no assurance can be given that the provisions taken by theCompany will be sufficient to cover these potential shortfalls. Through the Airbus Asset Management department or as a result of pastfinancing transactions, the Company is the owner of used aircraft, exposing it directly to fluctuations in the market value of these usedaircraft.
Due to the suspension of Export Credit Agency financing, there is a risk that additional customer financing will need to be provided,
which could increase the customer financing exposure. See “— Legal Risks” and “— Information on Airbus Activities — Section 1.1.7
Legal and Arbitration Proceedings”.
In addition, the Company has outstanding backstop commitments to provide financing related to orders on Airbus’ and ATR’s backlog.
While past experience suggests it is unlikely that all such proposed financing actually will be implemented, the Company’s sales
financing exposure could rise in line with future sales growth depending on the agreement reached with customers. Despite themeasures taken by the Company to mitigate the risks arising from sales financing activities as discussed above, the Company remains
exposed to the risk of defaults by its customers or significant decreases in the value of the financed aircraft in the resale market, which
may have a negative effect on its future financial condition and results of operations.

Counterparty Credit
In addition to the credit risk relating to sales financing as discussed above, the Company is exposed to credit risk to the extent of nonperformance by its counterparties for financial instruments, such as hedging instruments and cash investments. However, Airbus has
policies in place to avoid concentrations of credit risk and to ensure that credit risk exposure is limited.
Counterparties for transactions in cash, cash equivalents and securities as well as for derivative transactions are limited to highly rated
financial institutions, corporates or sovereigns. The Company’s credit limit system assigns maximum exposure lines to suchcounterparties, based on a minimum credit rating threshold as published by Standard & Poor’s and Moody’s. If neither is present Fitch
ratings is used. Besides the credit rating, the limit system also takes into account fundamental counterparty data, as well as sector andmaturity allocations and further qualitative and quantitative criteria such as credit risk indicators. The credit exposure of the Company isreviewed on a regular basis and the respective limits are regularly monitored and updated. The Company also seeks to maintain acertain level of diversification in its portfolio between individual counterparties as well as between financial institutions, corporates andsovereigns in order to avoid an increased concentration of credit risk on only a few counterparties.
However, there can be no assurance that the Company will not lose the benefit of certain derivatives or cash investments in case of asystemic market disruption. In such circumstances, the value and liquidity of these financial instruments could decline and result in asignificant impairment, which may in turn have a negative effect on the Company’s financial condition and results of operations.
Moreover, the progressive implementation of new financial regulations (MiFiD II / MiFIR, CRD4, Bank Restructuring Resolution
Directive, etc.) will have an impact on the business model of banks (for example, the split between investment banking and commercial
banking activities) and on the capital structure and cost of such banks’ activities in relation to over-the-counter derivatives, and therefore
on the funding consequences of central clearing and collateralisation of over-the-counter derivatives for corporations like the Company.
This may ultimately increase the cost and reduce the liquidity of the Company’s long-term hedges, for example, as banks seek to either
pass-on the additional costs to their corporate counterparties or withdraw from low-profit businesses altogether.

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Pension Commitments
The Company participates in several pension plans for both executive as well as non-executive employees, some of which are
underfunded. For information related to these plans, please refer to the “Notes to the IFRS Consolidated Financial Statements —Note 29.1: Post-employment Benefits — Provisions for Retirement Plans”. Although the Company has recorded a provision in its
balance sheet for its share of the underfunding based on current estimates, there can be no assurance that these estimates will not berevised upward in the future, leading the Company to record additional provisions in respect of such plans.
Necessary adjustments of such provisions include but are not limited to (i) the discount factor (dependent in part on interest rates) andthe inflation rate applied to calculate the net present value of the pension liabilities, (ii) the performance of the asset classes which are
represented in the pension assets, and (iii) additional cash injections contributed by the Company from time to time to the pension
assets. The Company has taken measures to reduce potential losses on the pension assets and to better match the characteristics ofthe pension liabilities with those of the pension assets as a long-term objective. Nevertheless, any required additional provisions would
have a negative effect on the Company’s total equity (net of deferred taxes), which could in turn have a negative effect on its futurefinancial condition.

Tax Exposure
As a multinational group with operations and sales in various jurisdictions, Airbus is subject to a number of different tax laws. It is theCompany’s objective to adhere to the relevant tax regulations and to ensure tax compliance in each country.
Airbus’ policy is to have its economic results taxed in a compliant manner in all countries where it creates value.
The Company’s decisions on its structure and on the transactions it enters into are based on its own fair interpretations of applicable tax
laws and regulations. The Company aims for certainty on the tax positions it adopts, though in a complex environment with increasing
uncertainty, there can be no assurance that the tax authorities will not seek to challenge such interpretations, consequently theCompany or its affiliates could become subject to tax claims.
The Company will always act to minimise the risk associated with a tax position, while aiming for tax efficiency as described below.
Where tax law is unclear or subject to interpretation, the Company may decide to take a written opinion from an independent third-party
tax advisor, detailing the facts, risks and conclusions, so as to support the decision-making process, or to engage with tax authorities tosecure alignment on interpretation of tax rules. The level of risk will be deemed to be acceptable where strong technical arguments exist
to support the position and where stakeholders have been consulted appropriately according to the value at stake.
In case weaknesses may be identified in tax processes, the Company will act to remediate the issues in a timely manner to ensure
continued compliance.

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2.

Business-Related Risks

Commercial Aircraft Market Factors
Historically, order intake for commercial aircraft has shown cyclical trends, due in part to changes in passenger demand for air travel
and the air cargo share of freight activity, which are in turn driven by a range of economic variables, such as gross domestic product(“GDP”) growth, private consumption levels or working age population size. Other factors, however, play an important role indetermining the market for commercial aircraft, such as (i) the average age and technical obsolescence of the fleet relative to new
aircraft, (ii) the number and characteristics of aircraft taken out of service and parked pending potential return into service,(iii) passenger and freight load factors, (iv) airline pricing policies and resultant yields, (v) airline financial health and the availability ofoutside financing for aircraft purchases, (vi) evolution of fuel price, (vii) regulatory environment, (viii) environmental constraints imposed
upon aircraft operations and (ix) market evolutionary factors such as the growth of low-cost passenger airline business models or the
impact of e-commerce on air cargo volumes. The market for commercial aircraft could continue to be cyclical, and downturns in broad
economic trends may have a negative effect on its financial condition and results of operations.
The commercial helicopter market could also be influenced by a number of factors listed above. The civil & parapublic and oil & gas
market softness has led to a postponement of investments in the acquisition of new platforms by offshore helicopter players and areduction of flight hours. Structural changes of the oil & gas segment are not anticipated at current oil price levels. The uncertainty on
the lead time of the market recovery may have an impact on Airbus Helicopters financial results and could lead to cancellations or lossof bookings and services.

Physical Security, Terrorism, Pandemics and Other Catastrophic Events
Past terrorist attacks and the spread of disease (such as the H1N1 flu pandemic or the Ebola epidemic in 2013-2016) havedemonstrated that such events may negatively affect public perception of air travel safety, which may in turn reduce demand for air
travel and commercial aircraft. The outbreak of wars, riots or political unrest or uncertainties may also affect the willingness of the public
to travel by air. Furthermore, major aircraft accidents may have a negative effect on the public’s or regulators’ perception of the safety ofa given class of aircraft, a given airline, form of design or air traffic management. As a result of such factors, the aeronautic industry may
be confronted with sudden reduced demand for air transportation and be compelled to take costly security and safety measures. The
Company may therefore suffer from a decline in demand for all or certain types of its aircraft or other products, and the Company’s
customers may postpone delivery or cancel orders.
In addition to affecting demand for its products, catastrophic events could disrupt the Company’s internal operations or its ability todeliver products and services. Disruptions may be related to threats to infrastructure, personnel security and physical security and mayarise from terrorism, natural disasters, damaging weather, and other crises. Any resulting impact on the Company’s production, services
or information systems could have a significant adverse effect on the Company’s operations, financial condition and results ofoperations as well as on its reputation and on its products and services.

Cyber Security Risks
The Company’s extensive information and communications systems are exposed to cyber security risks, which are rapidly changing,and increasing in sophistication and potential impact.
The Company is exposed to a number of different types of potential security risks, arising from actions that may be intentional andhostile, accidental or negligent. Industrial espionage, cyber-attacks including systems sabotage, data breaches (confidential data,
personal data and intellectual property), and data corruption and availability (notably ransomware) are the main risks that the Company
may face. Risks related to the Company’s industrial control systems, manufacturing processes and products are growing, with theincrease of interconnectivity and digitalisation, and with a growing gap developing between the defences of older, relatively insecureindustrial systems and the capabilities of potential attackers.
All of the above mentioned risks are heightened in the context of greater use of cloud services, integration with the extended enterprise,
the relatively insecure “internet of things” and the growing use in the Company’s IT systems of sophisticated mobile devices. Social
engineering is a growing threat, exacerbated by advances in machine learning.
Finally, the Company is exposed to reputational damage from the growing volume of false and malicious information injected to media
and social networks.
While the Company continues to make significant efforts to prevent such risks from materialising, making targeted investments will
reduce but not eradicate likelihood and impact through strengthening the business cyber resilience.
The materialisation of one or several of such risks could lead to severe damage including but not limited to significant financial loss,
need for additional investment, contractual or reputational performance degradation, loss of intellectual property, loss of business dataand information, operational business degradation or disruptions, and product or services malfunctions.

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Dependence on Key Suppliers and Subcontractors
The Company is dependent on numerous key suppliers and subcontractors to provide it with the raw materials, parts, assemblies andsystems that it needs to manufacture its products.
The Company relies upon the good performance of its suppliers and subcontractors to meet the obligations defined under theircontracts. Supplier performance is continually monitored and assessed so that supplier development programmes can be launched if
performance standards fall below expectations.
In case of supplier non-performance a systematic review and application of contractual liabilities linked to contract execution allows theCompany to mitigate its financial exposure due to the supplier non-performance. The Company also implements performance
improvement agreements with suppliers to incentivise suppliers to sustainably restore contractual performance levels.
In addition, the Company benefits from its inherent flexibility in production lead times to compensate for a limited non-performance of
suppliers, protecting the Company’s commitments towards its customers. In certain cases, dual sourcing is utilised to mitigate the risk.
However, no absolute assurance can be given that these measures will fully protect the Company from non-performance of a supplier
which could disrupt production and in turn may have a negative effect on its financial condition and results of operations.
Changes to the Company’s production or development schedules may impact suppliers so that they initiate claims under theirrespective contracts for financial compensation. However the robust, long-term nature of the contracts and a structured process tomanage such claims, limits the Company’s exposure. Despite these mitigation measures, this could still result in a negative impact on
the financial condition and results of operations of the Company.
As the Company’s global sourcing footprint extends, some suppliers (or their sub-tier suppliers) may have production facilities located incountries that are exposed to socio-political unrest or natural disasters which could interrupt deliveries. Country-based risk assessment
is applied by the Company to monitor such exposures and to ensure that appropriate mitigation plans or fall-back solutions are available
for deliveries from zones considered to be at risk. Despite these measures, the Company remains exposed to interrupted deliveries fromsuppliers impacted by such events, which could have a negative effect on the financial condition and results of operations of theCompany.
Suppliers (or their sub-tier suppliers) may also experience financial difficulties requiring them to file for bankruptcy protection, which
could disrupt the supply of materials and parts to the Company. However, financial health of suppliers is analysed prior to selection tominimise such exposure and then monitored during the contract period to enable the Company to take action to avoid such situations. In
exceptional circumstances, the Company may be required to provide financial support to a supplier and therefore face limited credit risk
exposure. If insolvency of a supplier does occur, the Company works closely with the appointed administrators to safeguard contractual
deliveries from the supplier. Despite these mitigation measures, the bankruptcy of a key supplier could still have a negative effect on thefinancial condition and results of operations of the Company.

Industrial Ramp-Up
As a result of the large number of new orders for aircraft recorded in recent years, the Company is in the process of accelerating its
production in order to meet the agreed upon delivery schedules for such new aircraft. The Company’s ability to further increase its
production rate will be dependent upon a variety of factors, including execution of internal performance plans, availability of raw
materials, parts (such as aluminium, titanium and composites) and skilled employees given the high demand by the Company and its
competitors, conversion of raw materials into parts and assemblies, and performance by suppliers and subcontractors (particularly
suppliers of engines and buyer-furnished equipment) who may experience resource or financial constraints due to ramp-up.
Management of such factors is also complicated by the development of new aircraft programmes in parallel, across Airbus and the two
Divisions, which carry their own resource demands. Therefore, failures relating to any or all of these factors could lead to missed ordelayed delivery commitments, and depending on the length of delay in meeting delivery commitments, could lead to additional costs
and customers’ rescheduling or terminating their orders. The associated risks may increase as the Company and its competitors
announce further production rate increases. Significant efforts have been made to improve supply chain stability and performance.
Specific areas of risk with suppliers of engines and of cabin equipment continue to be carefully managed.

Technologically Advanced Products and Services
The Company offers its customers products and services that are technologically advanced, the design, manufacturing, components
and materials utilised can be complex and require substantial integration and coordination along the supply chain. In addition, most of
the Company’s products must function under demanding operating conditions. Throughout the lifecycle of our products, Airbus performs
checks and inspections, which may result in modifications, retrofits or other corrective actions each of which may have an adverse effecton production, operations, in-service performance or financial condition. Even though the Company believes it employs sophisticateddesign, manufacturing and testing practices, there can be no assurance that the Company’s products or services will be successfully
developed, manufactured or operated or that they will perform as intended.
Certain of Airbus’ contracts require it to forfeit part of its expected profit, to receive reduced payments, to provide a replacement launchor other products or services, to provide cancellation rights, or to reduce the price of subsequent sales to the same customer if its
products fail to be delivered on time or to perform adequately. No assurances can be given that performance penalties or contract
cancellations will not be imposed should the Company fail to meet delivery schedules or other measures of contract performance — inparticular with respect to new development programmes such as the A350-900 and -1000 XWB, A400M, H175 or H160 and tomodernisation programmes such as the A320neo and the A330neo. See “— Programme-Specific Risks” below.

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In addition to the risk of contract cancellations, the Company may also incur significant costs or loss of revenues in connection withremedial action required to correct any performance issues detected in its products or services. See “— Management’s Discussion andAnalysis of Financial Condition and Results of Operations — 2.1.1.3 Significant programme developments, restructuring and related
financial consequences in 2015, 2016 and 2017”. Moreover, to the extent that a performance issue is considered to have a possible
impact on safety, regulators could suspend the authorisation for the affected product or service.
Any significant problems with the development, manufacturing, operation or performance of the Company’s products and services could
have a significant adverse effect on the Company’s financial condition and results of operations as well as on the reputation of theCompany and its products and services.

Dependence on Public Spending and on Certain Markets
In any single market, public spending (including defence and security spending) depends on a complex mix of geopoliticalconsiderations and budgetary constraints, and may therefore be subject to significant fluctuations from year to year and country tocountry. Any termination or reduction of future funding or cancellations or delays impacting existing contracts may have a negative effecton the Company’s financial condition and results of operations. In instances where several countries undertake to enter together into
defence or other procurement contracts, economic, political or budgetary constraints in any one of these countries may have a negative
effect on the ability of the Company to enter into or perform such contracts.
The Company has a geographically diverse backlog. Adverse economic and political conditions as well as downturns in broad economic
trends in certain countries or regions may have a negative effect on the Company’s financial condition and results of operations
generated in those regions.

Availability of Government and Other Sources of Financing
Since 1992, the EU and the US have operated under an agreement that sets the terms and conditions of financial support thatgovernments may provide to civil aircraft manufacturers. In late 2004, however, the US sought to unilaterally withdraw from thisagreement, which eventually led to the US and the EU making formal claims against each other before the World Trade Organization(“WTO”). While both sides have expressed a preference for a negotiated settlement that provides for a level playing field when funding
future aircraft developments, they have thus far failed to reach agreement on key issues. The terms and conditions of any new
agreement, or the final outcome of the formal WTO proceedings, may limit access by the Company to risk-sharing-funds for large
projects, may establish an unfavourable balance of access to government funds by the Company as compared to its US competitors or
may in an extreme scenario cause the European Commission and the involved governments to analyse possibilities for a change in thecommercial terms of funds already advanced to the Company.
In prior years, the Company and its principal competitors have each received different types of government financing of productresearch and development. However, no assurances can be given that government financing will continue to be made available in the
future, in part as a result of the proceedings mentioned above. Moreover, the availability of other outside sources of financing will
depend on a variety of factors such as market conditions, the general availability of credit, the Company’s credit ratings, as well as thepossibility that lenders or investors could develop a negative perception of the Company’s long- or short-term financial prospects if it
incurred large losses or if the level of its business activity decreased due to an economic downturn. The Company may therefore not beable to successfully obtain additional outside financing on appropriate terms, or at all, which may limit the Company’s future ability tomake capital expenditures, fully carry out its research and development efforts and fund operations.

Competition and Market Access
The markets in which the Company operates are highly competitive. In some areas, competitors may have more extensive or more
specialised engineering, manufacturing and marketing capabilities or better access to funding than the Company. In addition, some of
the Company’s largest customers and/or suppliers may develop the capability to manufacture products or provide services similar to
those of the Company. This would result in these customers/suppliers marketing their own products or services and competing directlywith the Company for sales of these products or services, all of which could significantly reduce the Company’s revenues. Further, newplayers are operating or seeking to operate in the Company’s existing markets which may impact the structure and profitability of thesemarkets. In addition, enterprises with different business models could substitute some of the Company’s products and services. Therecan be no assurance that the Company will be able to compete successfully against its current or future competitors or that thecompetitive pressures it faces in all business areas will not result in reduced revenues, market share or profit.
In addition, the contracts for many aerospace and defence products are awarded, implicitly or explicitly, on the basis of home country
preference. Although the Company is a multinational company which helps to broaden its domestic market, it may remain at acompetitive disadvantage in certain countries, especially outside of Europe, relative to local contractors for certain products. The
strategic importance and political sensitivity attached to the aerospace and defence industries means that political considerations willplay a role in the choice of many products for the foreseeable future.

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Major Research and Development Programmes
The business environment in many of the Company’s principal operating business segments is characterised by extensive research anddevelopment costs requiring significant up-front investments with a high level of complexity. The business plans underlying suchinvestments often contemplate a long payback period before these investments are recouped, and assume a certain level of return overthe course of this period in order to justify the initial investment. There can be no assurances that the commercial, technical and market
assumptions underlying such business plans will be met, and consequently, the payback period or returns contemplated thereinachieved.
Successful development of new programmes also depends on the Company’s ability to attract and retain aerospace engineers andother professionals with the technical skills and experience required to meet its specific needs. Demand for such engineers may often
exceed supply depending on the market, resulting in intense competition for qualified professionals. There can be no assurances that
the Company will attract and retain the personnel it requires to conduct its operations successfully. Failure to attract and retain such
personnel or an increase in the Company’s employee turnover rate could negatively affect the Company’s financial condition and resultsof operations.
No assurance can be given that the Company will achieve the anticipated level of returns from these programmes and otherdevelopment projects, which may negatively affect the Company’s financial condition and results of operations and competitiveness.

Digital Transformation, Continuous Improvement
and Competitiveness Programmes
In order to improve current operational performance while preparing for the future, in 2017 the Company launched the integration of its
headquarters and corporate functions with the largest Division, Airbus Commercial Aircraft, and has initiated a wide-reaching digitaltransformation programme, Quantum. In parallel, continuous improvement and competitiveness programmes running in all businesses
are pursued.

Digital transformation
The Quantum transformation programme was launched to accelerate transformation of end to end operations and to define our future
set-up (operations, new services, new business model) driven by customer requirements. In the short to mid-term Quantum will focus on
accelerating and industrialising the most promising digitally-enabled performance improvement initiatives permitting a step change. In
the longer term, Quantum will redesign end to end digital operations and enable new profitable business model and services for ourcustomers. Quantum is supported by the Digital Transformation Office (DTO) and CTO organisations.

Traditional cost-saving and competitiveness programmes
To improve competitiveness in soft markets, offset costs and achieve profitability targets, among other things, the Company and its
Divisions have launched several restructuring, cost saving and competitiveness programmes over the past several years. These include
Boost Competitiveness in Commercial Aircraft, Adapt in Helicopters and Compete in Defence and Space.

In addition to the risk of not achieving the anticipated level of cost savings, efficiency gains and other benefits from these programmes,
the Company may also incur higher than expected implementation costs. In many instances, there may be internal resistance to thevarious organisational restructuring and cost reduction measures contemplated. Restructuring, closures, site divestitures and job
reductions may also harm the Company’s labour relations and public relations, and have led and could lead to work stoppages and/or
demonstrations. In the event that these work stoppages and/or demonstrations become prolonged, or the costs of implementing the
programmes above are otherwise higher than anticipated, the Company’s financial condition and results of operations may be
negatively affected.

Acquisitions, Divestments, Joint Ventures and Strategic Alliances
As part of its business strategy, the Company may acquire or divest businesses and/or form joint ventures or strategic alliances.
Executing acquisitions and divestments can be difficult and costly due to the complexities inherent in integrating or carving out people,
operations, technologies and products. There can be no assurance that any of the businesses that the Company intends to acquire ordivest can be integrated or carved out successfully, as timely as originally planned or that they will perform well and deliver the expectedsynergies or cost savings once integrated or separated. In addition, despite the efforts and expenditures of the parties, regulatory,administrative or other contractual conditions can prevent transactions from being finalised. While the Company believes that it has
committed sufficient resources and established appropriate and adequate procedures and processes necessary to mitigate these risks,
there is no assurance that these transactions will be successfully completed or produce the expected benefits.

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Public-Private Partnerships and Private Finance Initiatives
Defence customers may request proposals and grant contracts under schemes known as public-private partnerships (“PPPs”) or private
finance initiatives (“PFIs”). PPPs and PFIs differ substantially from traditional defence equipment sales, as they often incorporate
elements such as:•

the provision of extensive operational services over the life of the equipment;•

continued ownership and financing of the equipment by a party other than the customer, such as the equipment provider;•mandatory compliance with specific customer requirements pertaining to public accounting or government procurement regulations;and•provisions allowing for the service provider to seek additional customers for unused capacity.

The Company is party to PPP and PFI contracts, for example Skynet 5 and related telecommunications services, and in the AirTanker(FSTA) project both with the UK MoD. One of the complexities presented by PFIs lies in the allocation of risks and the timing thereof
among different parties over the lifetime of the project.
There can be no assurances of the extent to which the Company will efficiently and effectively (i) compete for future PFI or PPP
programmes, (ii) administer the services contemplated under the contracts, (iii) finance the acquisition of the equipment and the ongoing provision of services related thereto, or (iv) access the markets for the commercialisation of excess capacity. The Company may
also encounter unexpected political, budgetary, regulatory or competitive risks over the long duration of PPP and PFI programmes.

Programme-Specific Risks
In addition to the risk factors mentioned above, the Company also faces the following programme-specific risks (while this list does not
purport to be exhaustive, it highlights the current risks believed to be material by management and that could have a significant impact
on the Company’s financial condition and results of operations):
A320neo programme. In connection with the A320neo programme, the Company faces the following main challenges: the transition
from A320ceo (current engine option) to A320neo (new engine option) that began in 2016 continued with 181 deliveries in 2017;
management of the internal and external supply chain pressure as a result of the industrial ramp-up; ensuring maturity and high quality
service support for a growing number of operators of A320neo. The main focus will be with the further ramp-up for Airbus and bothengine suppliers. For both engine suppliers, challenges are to (i) meet the delivery commitments in line with agreed schedule andensure sufficient engine availability; (ii) fix in-service maturity issues in line with Airbus and customer expectations and mitigate theassociated consequences.
A400M programme. In 2017, Airbus continued with development activities toward achieving the technical capabilities. In addition,
Airbus entered into discussions with OCCAR and the customer Nations that resulted in the signature of a Declaration of Intent (“DOI”)
on 5 February 2018 agreeing on a global re-baselining of the contract, including a revised aircraft delivery schedule, an updated
technical capability roadmap and a revised retrofit schedule. The DOI represents an important step towards reaching a contractuallybinding agreement also mitigating the commercial exposure while satisfying customer needs with regard to capabilities and availabilityof the aircraft. For more information on the DOI, see “— Management’s Discussion and Analysis of Financial Condition and Results ofOperations — Significant Programme Developments, Restructuring and Related Financial Consequences in 2015, 2016 and 2017 —
2.1.1.3”.
Challenges remain on development of contractual technical capabilities and the associated costs, on securing sufficient export orders intime, and on cost reductions. The key capabilities to be achieved remain cargo management and aerial delivery, self-defence andprotection, and air to air refuelling. In addition, the A400M programme continues to face challenges in the management of the retrofit
campaign as well as providing support to enable high levels of in-service availability.
For further information, please refer to the “— Notes to the IFRS Consolidated Financial Statements — Note 10: Revenues and Gross
Margin”.
A350 XWB programme. In connection with the A350 XWB programme, the Company faces the following main challenges: ensuringsatisfaction of operators and high quality support to their operations; maintaining supply chain performance and production ramp-up;
controlling and reducing the level of outstanding work in final assembly line; managing recurring costs during the ongoing ramp-up;
maintaining customisation and ramp-up of Heads of Version; maintaining the development schedule in line with learning curve
assumptions beyond the initial ramp up phase of A350-1000 XWB to ensure entry in service; maintaining attention on engine
development; and customer support for new type in service.
A380 programme. In connection with the A380 programme, the Company faces the following main challenges: secure future order
flow; ramp down the yearly production rate towards deliveries in 2019 and further reduce fixed costs to the new delivery level; makecontinued improvements to lower the resources and costs associated with designing each customised Head of Version aircraft forcustomers; and manage maturity in service.
A330 programme. In connection with the A330 programme, the main challenge the Company faces is to manage the transition to
A330neo. The A330neo development progresses after first flight took place in 2017 with attention on the engine development.
H225 programme and AS332 L2 fleet. In connection with the H225 programme and the AS332 L2 fleet, the Company faces thefollowing main challenges: since the crash in April 2016 of a H225 in Norway, the Company is dealing with protective measuresvalidated by EASA who lifted the flight suspension on 7 October 2016 and by UK and Norwegian aviation authorities on 7 July 2017 to
put the fleet back into flight operations; providing assistance to the investigation team and the authorities ahead of the publication of the

AIRBUS REGISTRATION DOCUMENT 2017 -12final accident report; working with the relevant stakeholders to allow the return to service of aircraft, following-up with retrofits anddealing with customer claims.
H175 programme. In connection with the H175 programme produced in cooperation with Avic, the Company faces the following main
challenges: after the delivery of the first H175 in VIP configuration in 2016, the Company is working on the certification of the PublicServices variant and the delivery of the 3 first H175 in Public Services configuration planned for 2018, as well as on the maturity plan of
the aircraft and with the associated industrial ramp-up.
NH90 and Tiger programmes. In connection with the NH90 and Tiger programmes, the Company is delivering according to contracts
whilst negotiations for the end of some contracts and some new contract amendments are still ongoing. In connection with multiple
fleets entering into service it faces the challenge of assuring support readiness.
Border security. In connection with border security projects, the Company faces the following main challenges: meeting the scheduleand cost objectives taking into account the complexity of the local infrastructures to be delivered and the integration of commercial-offthe-shelf products (radars, cameras and other sensors) interfaced into complex system networks; assuring efficient project and staffing;
managing the rollout including subcontractors and customers. Negotiations on change requests and schedule re-alignments remain
ongoing.

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3.

Legal Risks

Dependence on Joint Ventures and Minority Holdings
The Company generates a substantial proportion of its revenues through various consortia, joint ventures and equity holdings. Thesearrangements include primarily:•

the Eurofighter and AirTanker consortia; and•three principal joint ventures: MBDA, ATR and ArianeGroup.

The formation of partnerships and alliances with other market players is an integral strategy of the Company, and the proportion of sales
generated from consortia, joint ventures and equity holdings may rise in future years. This strategy may from time to time lead tochanges in the organisational structure, or realignment in the control, of the Company’s existing joint ventures.
The Company exercises varying and evolving degrees of control in the consortia, joint ventures and equity holdings in which it
participates. While the Company seeks to participate only in ventures in which its interests are aligned with those of its partners, the riskof disagreement or deadlock is inherent in a jointly controlled entity, particularly in those entities that require the unanimous consent of
all members with regard to major decisions and specify limited exit rights. The other parties in these entities may also be competitors of
the Company, and thus may have interests that differ from those of the Company.
In addition, in those holdings in which the Company is a minority partner or shareholder, the Company’s access to the entity’s books
and records, and as a consequence, the Company’s knowledge of the entity’s operations and results, is generally limited as compared
to entities in which the Company is a majority holder or is involved in the day-to-day management.

Product Liability and Warranty Claims
The Company designs, develops and produces a number of high profile products of large individual value, particularly civil and military
aircraft and space equipment. The Company is subject to the risk of product liability and warranty claims in the event that any of its
products fails to perform as designed. While the Company believes that its insurance programmes are adequate to protect it from suchliabilities, no assurances can be given that claims will not arise in the future or that such insurance coverage will be adequate.

Intellectual Property
The Company relies upon patents, copyright, trademark, confidentiality and trade secret laws, and agreements with its employees,
customers, suppliers and other parties, to establish and maintain its intellectual property (IP) rights in its products and services and in its
operations. Despite these efforts to protect its IP rights, any of the Company’s direct or indirect IP rights could be challenged, invalidated
or circumvented. Further, the laws of certain countries do not protect the Company’s proprietary rights to the same extent as the laws in
Europe and the US. Therefore, in certain jurisdictions the Company may be unable to protect its proprietary technology adequately
against unauthorised third-party copying or use, which could adversely affect its competitive position.
In addition, although the Company believes that it lawfully complies with the monopolies inherent in the IP rights granted to others, it has
been accused of infringement on occasion and could have additional claims asserted against it in the future. These claims could harm
its reputation, result in financial penalties or prevent it from offering certain products or services which may be subject to such third-party
IP rights. Any claims or litigation in this area, whether the Company ultimately wins or loses, could be time-consuming and costly, harm
the Company’s reputation or require it to enter into licensing arrangements. The Company might not be able to enter into these licensing
arrangements on acceptable terms. If a claim of infringement were successful against it, an injunction might be ordered against theCompany, causing further losses.

Export Controls Laws and Regulations
The export market is a significant market for the Company. In addition, many of the products the Company designs and manufactures
for military use are considered to be of national strategic interest. Consequently, the export of such products outside of the jurisdictions
in which they are produced may be restricted or subject to licensing and export control requirements, notably by the UK, France,
Germany and Spain, where the Company carries out its principal activities relating to military products and services as well as by othercountries where suppliers are based, notably, the US. There can be no assurance (i) that the export controls to which the Company issubject will not become more restrictive, (ii) that new generations of the Company’s products will not also be subject to similar or more
stringent controls or (iii) that geopolitical factors or changing international circumstances will not make it impossible to obtain export
licenses for one or more clients or constrain the Company’s ability to perform under previously signed contracts. Reduced access tomilitary export markets may have a significant adverse effect on the Company’s business financial condition and results of operations.
Operating worldwide, the Company must comply with several, sometimes inconsistent, sets of sanctions laws and regulations
implemented by national / regional authorities. Depending on geopolitical considerations including national security interests and foreign

AIRBUS REGISTRATION DOCUMENT 2017 -14policy, new sanctions regimes may be set up or the scope of existing ones may be widened, at any time, immediately impacting theCompany’s activities.
Although the Company seeks to comply with all such laws and regulations, even unintentional violations or a failure to comply could
result in suspension of the Company’s export privileges, or preclude the Company from bidding on certain government contracts (evenin the absence of a formal suspension or debarment).
Furthermore, the Company’s ability to market new products and enter new markets may be dependent on obtaining government
certifications and approvals in a timely manner.

Anti-Corruption Laws and Regulations
The Company is required to comply with applicable anti-bribery laws and regulations in jurisdictions around the world where it does
business. To that end, an anti-corruption programme has been put in place that seeks to ensure adequate identification, assessment,
monitoring and mitigation of corruption risks. Despite these efforts, ethical misconduct or non-compliance with applicable laws andregulations by the Company, its employees or any third party acting on its behalf could expose it to liability or have a negative impact on
its business.
In 2016, for example, the Company announced that it had discovered misstatements and omissions in certain applications for export
credit financing for Airbus customers, and had engaged legal, investigative and forensic accounting experts to conduct a review.
Separately, the UK Serious Fraud Office announced that it had opened a criminal investigation into allegations of fraud, bribery andcorruption in the civil aviation business of Airbus, relating to irregularities concerning third party consultants. Airbus was subsequently
informed that the French authorities, the Parquet National Financier (“PNF”), had also opened a preliminary investigation into the same
subject and that the two authorities will act in coordination going forward. See “— Information on Airbus Activities — 1.1.7 Legal andArbitration Proceedings”.
The Company cannot predict at this time the impact on it as a result of these matters, and accordingly cannot give any assurance that it
will not be adversely affected. In addition to the temporary suspension of export credit financing, the Company may be subject toadministrative, civil or criminal liabilities including significant fines and penalties, as well as suspension or debarment from government
or non-government contracts for some period of time. The Company may also be required to modify its business practices andcompliance programme and/or have a compliance monitor imposed on it. Any one or more of the foregoing could have a significant
adverse effect on the Company’s reputation and its business, financial condition and results of operations.

Legal and Regulatory Proceedings
The Company is currently engaged in a number of active legal and regulatory proceedings. See “— Information on Airbus Activities —1.1.7 Legal and Arbitration Proceedings”. The Company expects to continue to incur time and expenses associated with its defence,
regardless of the outcome, and this may divert the efforts and attention of management from normal business operations. Although theCompany is unable to predict the outcome of these proceedings, it is possible that they will result in the imposition of damages, fines orother remedies, which could have a material effect on the Company’s business, financial condition and results of operations. An
unfavourable ruling could also negatively impact the Company’s stock price and reputation.
In addition, the Company is from time to time subject to government inquiries and investigations of its business and competitiveenvironment due, among other things, to the heavily regulated nature of its industry. In addition to the risk of an unfavourable rulingagainst the Company, any such inquiry or investigation could negatively affect the Company’s reputation and its ability to attract andretain customers and investors, which could have a negative effect on its business, financial condition and results of operations. See “—
Non-Financial Information — 1.1.8.4(a) Responsible Business — Ethical Business Practices”.

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4.

Industrial and Environmental Risks

Given the scope of its activities and the industries in which it operates, the Company is subject to stringent environmental, health andsafety laws and regulations in numerous jurisdictions around the world. The Company therefore incurs, and expects to continue to incur,
significant capital expenditure and other operating costs to comply with increasingly complex laws and regulations covering theprotection of the natural environment as well as occupational health and safety. This expenditure includes the identification and theprevention, elimination or control of physical and psychological risks to people arising from work, including chemical, mechanical andphysical agents. Environmental protection includes costs to prevent, control, eliminate or reduce emissions to the environment, waste
management, the content of the Company’s products, and reporting and warning obligations. Moreover, new laws and regulations, theimposition of tougher licence requirements, increasingly strict enforcement or new interpretations of existing laws and regulations may
cause the Company to incur increased capital expenditure and operating costs in the future in relation to the above, which could have anegative effect on its financial condition and results of operations.
If the Company fails to comply with health, safety and environmental laws and regulations, even if caused by factors beyond its control,that failure may result in the levying of civil or criminal penalties and fines against it. Regulatory authorities may require the Company toconduct investigations and undertake remedial activities, curtail operations or close installations or facilities temporarily to prevent
imminent risks. In the event of an industrial accident or other serious incident, employees, customers and other third parties may fileclaims for ill-health, personal injury, or damage to property or the environment (including natural resources). Further, liability under somehealth, safety and environmental laws can be imposed retrospectively, on a joint and several basis, and, in relation to contaminatedsites, without any finding of non-compliance or fault. These potential liabilities may not always be covered by insurance, or may be only
partially covered. The obligation to compensate for such damages could have a negative effect on the Company’s financial condition
and results of operations.
In addition, the various products manufactured and sold by the Company must comply with relevant health, safety and environmental
laws, for example those designed to protect customers and downstream workers, and those covering substances and preparations, inthe jurisdictions in which they operate. Although the Company seeks to ensure that its products meet the highest quality standards,
increasingly stringent and complex laws and regulations, new scientific discoveries, delivery of defective products or the obligation to
notify or provide regulatory authorities or others with required information (such as under the EU Regulation known as “REACH”, which
addresses the production and use of chemical substances) may force the Company to adapt, redesign, redevelop, recertify and/or
eliminate its products from the market. Seizures of defective products may be pronounced, and the Company may incur administrative,
civil or criminal liability. Any problems in this respect may also have a significant adverse effect on the reputation of the Company and its
products and services.
Despite compliance with all applicable laws and regulations, the Company’s reputation may also be affected by the public perception of
the contributions of its operations and activities on society.

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1.
Information on Airbus Activities
1.1 Presentation of the Company
1.1.1

Overview

Due to the nature of the markets in which the Company operates and the confidential
nature of its businesses, any statements with respect to the Company’s competitive
position set out in paragraphs 1.1.1 through 1.1.5 below have been based on the
Company’s internal information sources, unless another source has been specified below.
With consolidated revenues of € 66.8 billion in 2017, Airbus is a global leader in aeronautics, space and related services. Airbus offers
the most comprehensive range of passenger airliners from 100 to more than 600 seats. Airbus is also a European leader providing
tanker, combat, transport and mission aircraft, as well as one of the world’s leading space companies. In helicopters, Airbus provides
the most efficient civil and military rotorcraft solutions worldwide. In 2017, it generated 85% of its total revenues in the civil sector(compared to 83% in 2016) and 15% in the defence sector (compared to 17% in 2016). As of 31 December 2017, Airbus’ active
headcount was 129,442 employees.

Strategy
In 2017, the Company has further pushed forward its restructuring, in accordance with the strategy introduced in 2013 and summed up
in the statement “we make it fly”.
The Company has been further integrated by merging its Group structure with the commercial aircraft activities of Airbus. The merger of
Airbus Group and Airbus paves the way for an overhaul of the corporate set-up, simplifies the Company’s governance, eliminates
redundancies and supports further efficiencies, while at the same time driving further integration of the entire group. The Company
changed its name to Airbus SE. The two Divisions, "Defence and Space" and "Helicopters" remain integral parts of the Company andwill derive considerable benefit from the merger through more focused business support and reduced costs.
Airbus Defence and Space continued to reshape its portfolio and refocus on military aircraft, missiles, launchers and satellites. The
Company pursued the divestment process of the businesses that do not fit with the new strategic goals and have better futures in more
tailored ownership structures. The Company completed the divestment of its defence electronics business. The divestment is part of thestrategic review of the Airbus Defence and Space business portfolio.
Airbus Helicopters also reshaped its portfolio and divested its Vector Aerospace business.
The eight strategic paths of the Company’s strategy remain as follows:
1. Remain a leader in commercial aerospace, strengthen market position and profitability
The commercial aircraft business aims to be largely self-sufficient going forward, rather than attempting to rely on a balanced group
portfolio. Focus upon on-time, on-cost and on-quality deliveries is paramount given the huge backlog execution challenge. Airbus
aims to further strengthen through focusing on digitalisation, innovation, services and a more global approach.
2. Preserve leading position in European defence, space and government markets by focusing on military aircraft, missiles,
space and related services
Defence can no longer be a tool to manage and hedge against commercial cycles, but the Company seeks to remain strong andactively shape its defence, space and governmental business. The focus will involve (i) developing high-performing businesses suchas missiles, launchers, combat and transport aircraft, entering into new growth areas when they are backed by government funding,and (ii) focusing on productivity improvements both through internal means and in the context of European optimisation to enableefficiencies and improve Airbus’ positioning on export markets.
In 2017, Airbus Aerial, a new drone service business, was launched. The new company, based in the US, leverages some of Airbus
Defence and Space key competencies (satellite imagery, data analytics, small & high-altitude UAV and cloud computing) to analyseand distribute powerful, actionable data to customers.
Airbus is working with its customers to define and address the future of European air combat, in addition to future air power more
broadly.

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3. Pursue incremental innovation potential within product programmes while pioneering and fostering disruptions in our
industry, and developing necessary skills and competencies required to compete in the future
Airbus innovates every day to increase its value propositions by enhancing product performance, creating new customer benefits,
and reducing costs. Our cutting-edge technologies and scientific excellence contribute to global progress, and to delivering solutions
for society’s challenges, such as environmental protection, mobility and safety.
After many new product developments in recent years, the majority of the Company’s revenues are generated today in segments
where we have competitive, mature products that are far from the end of their lifecycle. Innovation will therefore target maintaining,
expanding and continually leveraging the competitiveness of these products.
In addition, Airbus raised its ambitions to pioneer and disrupt the aerospace industry in areas that will shape the market and our
future and made a substantial effort in breakthrough innovation.
4. Exploit digitalisation to enhance our current business as well as pursue disruptive business models
Digitalisation will support Airbus’ transformation by focusing on five main axes: (i) enabling high employee engagement,(ii) achieving digital operational excellence, (iii) mastering our product data value chain and turning product data into insight,(iv) capturing the end-user experience and (v) driving our business agility.
Airbus has initiated a wide-reaching digital transformation programme called Quantum. Quantum is the programme that drives
Airbus’ digital transformation. Scaling up and accelerating proven digital initiatives, to deliver breakthroughs in end-to-end
operational performance and customer satisfaction across our business; it is also about accelerating innovation and growth throughboth new services and business models. Quantum is fundamental to Airbus success, now and into the future.
A prime example of how Airbus leads disruption in the aerospace industry is Urban Air Mobility, “UAM”: we expect a large-scale
market to emerge by adding the third dimension to transport options in megacities. This will require new end-to-end solutions
combining electrical Vertical Take Off and Landing “eVTOL” vehicles, self-piloting/automation, and a digital, services driven
economy with new mobility-as-a-service business models and seamless integration into other transport systems. Starting around2014, Airbus has made significant progress on technical solutions (e.g., eVTOL vehicle demonstrators) and business aspects(disruptive strategy, on-demand helicopter transport, policy making support) and has become a precursor in the field. But the racefor entry into service of the first fully certified transport system has just begun.
5. Adapt to a more global world as well as attract and retain global talents
With over 75% of our backlog and 70% of our revenues coming from outside Europe, Airbus is, more than ever, a global company.
The constant effort to globalise our businesses, especially in countries with substantial growth, has paid off. This global footprint isalso reflected in the diversity of our staff and skills. Locally, products may need to be adapted and will have to be serviced, but themain logic going forward is that the industry will retain its “global products for local markets” dynamic. Greenfield approaches have
proven to give Airbus a controlled entry and real citizenship, whilst partnerships and acquisitions are complementary tools.
6. Focus services on and around the Company’s platforms
The strategy going forward is to focus on services where Airbus can differentiate and add value for its customers according to themotto “no one knows our products better than we”, aiming at developing long-term customer intimacy and bringing competitive
advantage to its customers. As services are executed locally, the portfolio will be adapted to the increasingly global customer base.
Cooperation with military customers is set to increase substantially through maintenance and support services thanks to the newplatforms in the still growing fleet, which will include about 600 Eurofighters, over 150 A400M aircraft, around 500 NH90s and over
150 Tiger helicopters. In Commercial Aircraft, the installed base is expanding rapidly, and new innovative services (power by thehour, maintenance, training) are being offered successfully.
7. Strengthen the value chain position
Airbus’ core capability is to master programme management and architect / integrator capabilities in order to market, design,develop, manufacture and service large-scale aeronautics / space platforms and integrated systems. As Airbus is based on a strong
platform prime role, managing the supplier base towards delivering to the final customer is key. We aim to strengthen and optimise
selected strategic value chain areas to protect our intellectual property, manage risks, increase profit, access services anddifferentiate our offerings. Airbus’ suppliers provide a large proportion of the value in our products, necessitating a robust supplychain governance framework. This is supported by processes and tools that foster partnership, risk mitigation and supplierperformance development.
In order to secure our value chain position and maintain a competitive advantage, Airbus re-assesses its make or buy strategy and
M&A strategy to better control its strategic know how and capture more of the value chain. Airbus launched Nacelle In-Sourcing for
A320 UTAS nacelles in order to build competence in Ultra-high Bypass Ratio engine integration, where the integration itself will
provide a significant part of future performance gain.
8. Focus on profitability, value creation and market position; no need to chase growth at any cost; actively manage portfolio
Thanks to strong organic growth potential, mainly in the commercial airplane business, Airbus is going through a series of
production ramp-ups with associated financial needs. On top of that, targeted investments are expected to help to position Airbus forthe future. The financial strength of the Company is vital for mastering these challenges, and to ensure that we have enough room
for manoeuvre for further strategic moves. As a prerequisite, the Company must remain attractive for investors, notably compared toits peers.

AIRBUS REGISTRATION DOCUMENT 2017 -18

Organisation of Airbus’ Businesses
In 2017, the Company organised its businesses into the following three operating segments: (i) Commercial Aircraft, (ii) Helicopters and(iii) Defence and Space. However, as a continuation of a number of integration and normalisation steps that took place in 2012, 2013
and 2015, the Company is now merging its Group structure with its largest division Commercial Aircraft. The merger began mid-2017
and provided the opportunity to introduce a single Airbus brand for the Company and all its entities, effective since January 2017. On 12
April 2017, the Company changed its name from Airbus Group SE to Airbus SE, following approval at the Annual General Meeting.
Therefore, the Company together with its subsidiaries is referred to as “Airbus” and no longer the “Group”, and the segment formerly
known as Airbus is referred to as “Airbus Commercial Aircraft”. In this new set-up, Airbus retains Airbus Defence and Space and Airbus
Helicopters as Divisions. The chart set out in “— General Description of the Company and its Share Capital — 3.3.6 Simplified Group
Structure Chart” illustrates the allocation of activities.

Commercial Aircraft
Airbus Commercial Aircraft is one of the world’s leading aircraft manufacturers of passenger airliners, ranging in capacity from 100 to
more than 600 seats. Across all its aircraft families Airbus Commercial Aircraft’s unique approach ensures that aircraft share the highest
commonality in airframes, on-board systems, cockpits and handling characteristics. This significantly reduces operating costs forairlines.
Since it was founded in 1970 and up to the end of 2017, Airbus Commercial Aircraft has received orders for 18,191 commercial aircraftfrom 399 customers around the world. In 2017, Airbus Commercial Aircraft delivered 718 aircraft (compared to 688 deliveries in 2016)
and received 1,229 gross orders (compared to 949 gross orders in 2016), or 50% of the gross worldwide market share (in value terms)of aircraft with more than 100 seats (compared to 54% in 2016). After accounting for cancellations, net order intake for 2017 was
1,109 aircraft (compared to 731 aircraft in 2016). As of 31 December 2017, Airbus Commercial Aircraft’s backlog of commercial orders
was 7,265 aircraft (compared to 6,874 aircraft in 2016).
In 2017, Airbus Commercial Aircraft recorded total revenues of € 50.96 billion – representing 75% of Airbus’ revenues. See “—
1.1.2 Commercial Aircraft”.

Helicopters
Airbus Helicopters is a global leader in the civil and military rotorcraft market, offering one of the most complete and modern ranges ofhelicopters and related services. This product range currently includes light single-engine, light twin-engine, medium and medium-heavy
rotorcraft, which are adaptable to all kinds of mission types based on customer needs.
Airbus Helicopters delivered 409 helicopters in 2017 (418 in 2016) and received 335 net orders in 2017 (compared to 353 net orders in2016). Order intake amounted to € 6.54 billion (2016: € 6.06 billion). Civil contracts accounted for 49% of this order volume, with military
sales representing the remaining 51%. At the end of 2017, Airbus Helicopters order book stood at 692 helicopters (2016: 766
helicopters).
In 2017, Airbus Helicopters recorded total revenues of € 6.45 billion, representing 9% of Airbus’ revenues. See “— 1.1.3 Helicopters”.

Defence and Space
Airbus Defence and Space is Europe’s number one defence and space enterprise, the second largest space business worldwide andamong the top ten global defence enterprises. Defence and Space puts a strong focus on core businesses: space, military aircraft,
missiles and related systems and services.
Airbus Defence and Space is organised in four Programme Lines: Military Aircraft; Space Systems; Communications, Intelligence &Security (CIS); and Unmanned Aerial Systems (UAS). It develops and engineers cutting-edge products in the field of defence andspace, enabling governments, institutions and commercial customers alike to protect resources and people while staying connected to
the world. Airbus Defence and Space solutions guarantee sovereignty in foreign affairs and defence matters.
In 2017, Airbus Defence and Space recorded total revenues of € 10.8 billion, representing 16% of Airbus’ revenues. See “—
1.1.4 Defence and Space”.

Summary Financial and Operating Data
The following tables provide summary financial and operating data for Airbus for the past three years.

CONSOLIDATED REVENUES BY DIVISION FOR THE YEARS ENDED 31 DECEMBER 2017, 2016 AND 2015
Year ended
31 December 2017

Year ended
31 December 2016

Year ended
31 December 2015

Airbus Commercial Aircraft

50,95849,23745,854

Airbus Helicopters

6,450

6,652

6,786

Airbus Defence and Space

10,804

11,85413,080Total Divisional revenues

68,212

67,74365,720

Other / HQ / Consolidation(1)(1,445)(1,162)(1,270)Total

66,767

66,58164,450(in €m)AIRBUS REGISTRATION DOCUMENT 2017 -19

(1) “Other / HQ / Consolidation” comprises the holding function of Airbus, the Airbus Bank and other activities not allocable to the reportable segments,
combined together with consolidation effects.

CONSOLIDATED REVENUES BY GEOGRAPHICAL AREA FOR THE YEARS ENDED 31 DECEMBER 2017, 2016
AND 2015
Year ended 31 December 2017 Year ended 31 December 2016 Year ended 31 December 2015
Amount in €bn

In percentage(1)Amount in €bn

In percentage(1)Amount in €bn

In percentage(1)Europe

17.0

25.4%

21.4

32.1%

20.1

31.1%

North America

12.6

18.9%

8.9

13.4%

10.2

15.9%

Asia / Pacific

24.8

37.2%

21.3

32.0%

18.8

29.1%

Rest of the World(2)

12.4

18.5%

15.0

22.5%

15.4

23.9%

Total

66.8

100%

66.6

100%

64.5

100%

(1) Percentage of total revenues after eliminations.
(2) Including the Middle East.

CONSOLIDATED ORDERS BOOKED FOR THE YEARS ENDED 31 DECEMBER 2017, 2016 AND 2015
Year ended 31 December 2017 Year ended 31 December 2016 Year ended 31 December 2015
Amount in €bn

In percentage(1)Amount in €bn

In percentage(1)Amount in €bn

In percentage(1)Airbus Commercial
Aircraft(3)

143.4

90.3%

114.9

84.3%

139.1

87.1%

Airbus Helicopters

6.5

4.1%

6.1

4.4%

6.2

3.9%

Airbus Defence
and Space

Orders booked

(2)

8.9

5.6%

15.4

11.3%

14.4

9.0%

Total Divisional orders

158.8

100%

136.4

100%

159.7

100%

Other / HQ /Consolidation

(1.1)

(1.9)

(0.7)

Total

157.7

134.5

159.0

(1) Before “Other / HQ / Consolidation”.
(2) Without options.
(3) Based on catalogue prices for commercial aircraft activities.

CONSOLIDATED BACKLOG FOR THE YEARS ENDED 31 DECEMBER 2017, 2016 AND 2015(1)Year ended 31 December 2017 Year ended 31 December 2016 Year ended 31 December 2015
Amount in €bn

In percentage(2)Amount in €bn

In percentage(2)Amount in €bn

In percentage(2)Airbus Commercial
Aircraft(3)

950.4

95.1%

1,010.2

95.0%

952.4

94.6%

Airbus Helicopters

11.2

1.1%

11.3

1.1%

11.8

1.2%

Airbus Defence
and Space

37.4

3.8%

41.5

3.9%

42.9

4.2%

Total Divisional
backlog

999.0

100%

1,063.0100%

1,007.1

100%

Other / HQ /Consolidation

(2.2)

(2.6)

(1.2)

Total

996.8

1,060.4

1,005.9(1) Without options.
(2) Before “Other / HQ / Consolidation”.
(3) Based on catalogue prices for commercial aircraft activities.

Relationship between Airbus SE and Airbus
In line with the previous organisational structure, Airbus SE itself does not engage in the core aerospace, defence or spacebusiness of Airbus but coordinates related businesses, sets and controls objectives and approves major decisions for Airbus. As
the parent company, Airbus SE conducts activities which are essential to Airbus’ activities and which are an integral part of theoverall management of Airbus. In particular, finance activities pursued by Airbus SE are in support of the business activities andstrategy of Airbus. In connection therewith, Airbus SE provides or procures the provision of services to the subsidiaries of Airbus.
AIRBUS REGISTRATION DOCUMENT 2017 -20

General management service agreements have been put in place with the subsidiaries and services are invoiced on a cost plus
basis.
For management purposes, Airbus SE acts through its Board of Directors, Executive Committee, and Chief Executive Officer inaccordance with its corporate rules and procedures as described below under “— Corporate Governance — 4.1 Management &Control”.
Within the framework defined by Airbus SE, each Division, Business Unit and subsidiary is vested with full entrepreneurial responsibility.

1.1.2

Commercial Aircraft

Airbus Commercial Aircraft is one of the world’s leading aircraft manufacturers of passenger airliners. Airbus Commercial Aircraft helps
to shape the future of air transportation and drive steady growth around the world. Airbus Commercial Aircraft seeks incremental
innovative technological solutions and the most efficient sourcing and manufacturing possible – so airlines can grow and people canconnect. Airbus Commercial Aircraft’s comprehensive product line comprises successful families of jetliners ranging in capacity from100 to more than 600 seats: the single-aisle A320 Family, which is civil aviation’s best-selling product line; the A330 Family; the newgeneration widebody A350 XWB; and the flagship double-deck A380. Across all its aircraft families Airbus Commercial Aircraft’s uniqueapproach ensures that aircraft share high commonality in airframes, on-board systems, cockpits and handling characteristics. Thissignificantly reduces operating costs for airlines. See “— 1.1.1 Overview” for an introduction to Airbus Commercial Aircraft.
Airbus Commercial Aircraft’s global presence includes, on top of France, Germany, Spain and the United Kingdom, fully-owned
subsidiaries in the United States, China, Japan, India and in the Middle East, and spare parts centres in Hamburg, Frankfurt,
Washington, Beijing, Dubaï and Singapore. Airbus Commercial Aircraft also has engineering and training centres in Toulouse, Miami,
Mexico, Wichita, Hamburg, Bangalore, Beijing and Singapore, as well as an engineering centre in Russia. There are also 15 hubs and
143 field service stations around the world. Airbus Commercial Aircraft also relies on industrial co-operation and partnerships with major
companies and a wide network of suppliers around the world.

Strategy
Airbus Commercial Aircraft’s primary goal is to deliver strong results in a sustained manner, while commanding a further increased
share of the worldwide commercial aircraft market over the long-term and expanding its customer services offering. To achieve thesegoals, Airbus Commercial Aircraft is actively:

Developing the Most Comprehensive Line of Products in Response to Customer Needs
Airbus Commercial Aircraft continuously seeks to develop and deliver new products to meet customers’ evolving needs, while also
improving its existing product line. The A330neo (new engine option) is one of the evolutions to the A330 Family and the A320neo (newengine option) is one of many product upgrades to the A320 Single-Aisle Family to maintain its position as the most advanced and fuelefficient single-aisle aircraft family.
Airbus Commercial Aircraft is also currently pursuing (i) development and production on the A350 XWB programme, and (ii) research on
the development of new aircraft in the short-range, medium-range and long-haul segments.
To support the A350 XWB ramp-up and other production increases, a new super transporter is under development, with the first of five
Beluga XL aircraft to enter into service in 2019.

Expanding its Customer Services Offering
Airbus Commercial Aircraft seeks to remain at the forefront of the industry by expanding its customer services offering to meetcustomers’ evolving needs. As a result, Airbus Commercial Aircraft has developed a wide range of value-added and customised
services which customers can select based on their own make or buy policy and needs. This approach provides Airbus operators withsolutions to significantly reduce their operating costs, increase aircraft availability and enhance the quality of their operations.

Building a Leaner, More Fully Integrated Company
In order to build a leaner, more fully integrated company and thereby bolster its competitiveness, Airbus Commercial Aircraft is adapting
its organisation to foster an entrepreneurial spirit and empower more teams, while maintaining harmonised processes across all sites.
For series programmes, additional responsibilities and means have been delegated to plants for delivery at increased rates. Airbus also
has become a more integrated company, working towards one common culture across its global workforce, as well as aligning
processes and planning with the global supplier base.

MarketMarket Drivers
The main factors affecting the commercial aircraft market include passenger demand for air travel, cargo activity, economic growth
cycles, oil prices, national and international regulation (and deregulation), the rate of replacement and obsolescence of existing fleets
and the availability of aircraft financing sources. The performance, competitive posture and strategy of aircraft manufacturers, airlines,
cargo operators and leasing companies as well as wars, political unrest, pandemics and extraordinary events may also precipitatechanges in demand and lead to short-term market imbalances.

AIRBUS REGISTRATION DOCUMENT 2017 -21

In recent years, China and India have emerged as significant new aircraft markets. According to internal estimates, they are expected toconstitute the first and third most important markets by aircraft delivery value, respectively, in the next twenty years. As a result, Airbus
Commercial Aircraft has sought to strengthen its commercial and industrial ties in these countries. New aircraft demand from airlines in
the Middle East has also become increasingly important, as they have rapidly executed strategies to establish a global presence and toleverage the benefits the region can deliver.
The no-frills / low-cost carriers also constitute a significant sector, and are expected to continue growing around the world, particularly in
Asia, where emerging markets and continued deregulation should provide increased opportunities. While single-aisle aircraft continue tobe a popular choice for these carriers, demand for Airbus Commercial Aircraft’s range of twin-aisle aircraft may also increase as someof these carriers develop or further develop their long-range operations.
Overall growth. The long-term market for passenger aircraft depends primarily on passenger demand for air travel, which is itself
primarily driven by economic or GDP growth, fare levels and demographic growth. Measured in revenue passenger kilometres, air travelincreased in every year from 1967 to 2000, except for 1991 due to the Gulf War, resulting in an average annual growth rate of 7.9% for
the period. Demand for air transportation also proved resilient in the years following 2001, when successive shocks, including 9/11 and
SARS in Asia, dampened demand. Nevertheless, the market quickly recovered.
At the end of 2008 and in 2009, the financial crisis and global economic difficulties witnessed resulted in only the third period of negative
traffic growth during the jet age, and a cyclical downturn for airlines in terms of traffic (both passenger and cargo), yields and profitability.
More recently, air travel demand growth has gained solid momentum, supported by the ongoing improvement in global economic
conditions throughout the year. World real GDP growth is projected to be at 2.7% in 2017, an acceleration from the 2.4% in 2016, and is
expected to further strengthen to 2.9% in 2018. The upward trend was driven by the strengthening investment in advanced economies
as well as the recovery in emerging market and developing economies owing to the increased export demand. The lower air fares owing
to the low fuel price also continued to stimulate traffic growth, albeit at a more moderate level compared to 2016.
Preliminary figures released at the end of 2017, by the International Civil Aviation Organisation (ICAO), confirmed that some 4.1 billion
passengers made use of the global air transport network for their business, tourism needs or for simply visiting friends and relatives(VFR) in 2017. The annual passenger total is up 7.1% compared to 2016 and the number of departures rose to approximately 37 million
globally. World passenger traffic, expressed in terms of total scheduled revenue passenger-kilometres (RPKs), posted an increase of
7.6% with approximately 7.7 trillion revenue passenger kilometres performed.
In the long-term, Airbus Commercial Aircraft believes that air travel remains a growth business. Based on internal estimates, Airbus
Commercial Aircraft anticipates a growth rate of 4.4% annually during the period 2017-2036. If the actual growth rate equals or exceeds
this level, Airbus Commercial Aircraft expects that passenger traffic, as measured in revenue passenger kilometres, would more thandouble over the forecast period.
Cyclicality. Despite an overall growth trend in air travel, aircraft order intake can vary significantly from year to year and within different
regions, due to the volatility of airline profitability, cyclicality of the economy, aircraft replacement waves and occasional unforeseen
events which can depress demand for air travel. However, new product offerings and growth across the market has resulted in goodlevels of order activity in recent years. In the last seven years, order totals exceeded record Airbus Commercial Aircraft deliveries thus
strengthening both order book and backlog totals.
Despite some cyclicality in airline demand, Airbus Commercial Aircraft aims to secure stable delivery rates from year to year, supported
by a strong backlog of orders and a regionally diverse customer base. At the end of 2017, the backlog stood at 7,265 aircraft,
representing around nine years of production at current rates. Through careful backlog management, close monitoring of the customer
base and a prudent approach to production increases, Airbus Commercial Aircraft has successfully increased annual deliveries for
15 years running, even through the economic crisis of 2008-2009.
Regulation / Deregulation. National and international regulation (and deregulation) of international air services and major domestic air
travel markets affect demand for passenger aircraft as well. In 1978, the US deregulated its domestic air transportation system, followedby Europe in 1985. The more recently negotiated “Open Skies Agreement” between the US and Europe, which became effective in
2008, allows any European or US airline to fly any route between any city in the EU and any city in the US. Other regions and countries
are also progressively deregulating, particularly in Asia. This trend is expected to continue, facilitating and in some cases driving
demand. In addition to providing greater market access (which may have formerly been limited), deregulation may allow for the creationand growth of new airlines or new airline models, as has been the case with the no-frills / low-cost airline model, which has increased inimportance throughout major domestic and intra-regional markets since deregulation (e.g., in the US and Europe).
Airline network development: “hub” and “point-to-point” networks. Following deregulation, major airlines have sought to tailor theirroute networks and fleets to continuing changes in customer demand. Accordingly, where origin and destination demand prove
sufficiently strong, airlines often employ direct, or “point-to-point” route services. However, where demand between two destinations
proves insufficient, airlines have developed highly efficient “hub and spoke” systems, which provide passengers with access to a far
greater number of air travel destinations through one or more flight connections.
The chosen system of route networks in turn affects aircraft demand, as hubs permit fleet standardisation around both smaller aircraft
types for the short, high frequency and lower density routes that feed the hubs (between hubs and spokes) and larger aircraft types forthe longer and higher density routes between hubs (hub-to-hub), themselves large point-to-point markets. As deregulation has led
airlines to diversify their route network strategies, it has at the same time therefore encouraged the development of a wider range ofaircraft in order to implement such strategies (although the trend has been towards larger-sized aircraft within each market segment as
discussed below).
Airbus Commercial Aircraft, like others in the industry, believes that route networks will continue to grow through expansion of capacity
on existing routes and through the introduction of new routes, which will largely be typified by having a major hub city at least at one endof the route. These new route markets are expected to be well served by the latest product offering, the A350 XWB. In addition, theA380 has been designed primarily to meet the significant demand between the major hub cities, which are often among the world’s
largest urban centres (such as London, Paris, New York and Beijing). Airbus Commercial Aircraft has identified 58 major hub cities in its

AIRBUS REGISTRATION DOCUMENT 2017 -22

current market analysis, with this number expected to grow to over 95 by 2036. Airbus Commercial Aircraft believes that it is well
positioned to meet current and future market requirements given its complete family of products.
Alliances. The development of world airline alliances has reinforced the pattern of airline network development described above.
According to data from Ascend, a UK-based aviation industry consultancy, one-third of the world’s jetliner seats being flown today areoperated by just 15 airlines. In the 1990s, the major airlines began to enter into alliances that gave each alliance member access to theother alliance members’ hubs and routings, allowing airlines to concentrate their hub investments while extending their product offeringand market access.

Market Structure and Competition
Market segments. According to a study conducted by Airbus Commercial Aircraft, nearly 19,000 passenger aircraft with more than
100 seats were in service with airlines worldwide at the beginning of 2017. Currently, Airbus Commercial Aircraft competes in each of
the three principal market segments for aircraft with more than 100 seats.
“Single-aisle” aircraft, such as the A320 Family, have 100 to more than 200 seats, typically configured with two triple seats per row
divided by one aisle, and are used principally for short-range and medium-range routes.
“Wide-body” aircraft, such as the A330 / A350 XWB Families, have a wider fuselage with more than 210 seats, typically configured witheight seats per row and with two aisles. The A330 / A350 XWB Families are capable of serving all short- to long-range markets.
“Very large aircraft”, such as the A380 Family, are designed to carry more than 400 passengers, non-stop, over very long-range routes
with superior comfort standards and with significant cost-per-seat benefits to airlines, although such aircraft can also be used overshorter ranges in high-density (including domestic) markets.
Freight aircraft, which form a fourth, related segment, are often converted ex-passenger aircraft. See “— Regional Aircraft,
Aerostructures, Seats and Aircraft Conversion — EFW”.
Airbus Commercial Aircraft also competes in the corporate, VIP business jet market with the ACJ.
Airbus Corporate Jets (ACJ) creates the world’s most rewarding flying experiences with customers by providing them with uniqueexpertise, the finest service, best technology and highest standards of care in corporate aviation.
Airbus continues to develop corporate jet versions of its modern airliner family, notably the ACJ319neo and ACJ320neo, as well as
offering new variants, such as the ACJ330neo and ACJ350 XWB. The increased range of these aircraft extends Airbus’ leadership in
cabin comfort to even longer flights.
Airbus’ ACJ319neo will fly eight passengers 6,750 nm/12,500 km or 15 hours, while the ACJ350 XWB can transport 25 passengers for
10,800 nm/20,000 km or 22 hours.
An ACJ Service Centre Network is progressively being implemented, building on the company’s philosophy of customer care.
More than 180 Airbus corporate jets are in service with companies, individuals and governments, and they are flying on every continent,
including Antarctica.
Geographic differences. The high proportion of single-aisle aircraft in use in both North America and Europe reflects the
predominance of domestic short-range and medium-range flights, particularly in North America due to the development of hubs
following deregulation. In comparison with North America and Europe, the Asia-Pacific region uses a greater proportion of twin-aisle
aircraft, as populations tend to be more concentrated in fewer large urban centres. The tendency towards use of twin-aisle aircraft isalso reinforced by the fact that many of the region’s major airports limit the number of flights, due either to environmental concerns or to
infrastructure constraints that limit the ability to increase flight frequency. These constraints necessitate higher average aircraft seating
capacity per flight. However, Airbus Commercial Aircraft believes that demand for single-aisle aircraft in Asia will grow over the next
20 years, particularly as domestic markets in China and India and low-cost carriers continue to develop in the region. Aircraft economics
will also help to drive aircraft size, with airlines looking to reduce the cost per seat through higher density aircraft cabins and the use oflarger aircraft types and variants where possible.
Competition. Airbus Commercial Aircraft has been operating in a duopoly since Lockheed’s withdrawal from the market in 1986 andBoeing’s acquisition of McDonnell Douglas in 1997. As a result, the market for passenger aircraft of more than 100 seats has been
divided between Airbus Commercial Aircraft and Boeing. According to the manufacturers’ published figures for 2017, Airbus Commercial
Aircraft and Boeing, respectively, accounted for 48% and 52% of total commercial aircraft deliveries, 55% and 45% of total net orders (inunits), and 55% and 45% of the total year-end backlog (in units). Airbus Commercial Aircraft’s deliveries (718 in 2017) were the15th year in a row of increased production.
Nevertheless, the high technology and high value nature of the business makes aircraft manufacturing an attractive industry in which toparticipate, and besides Boeing, Airbus Commercial Aircraft faces aggressive international competitors who are intent on increasing
their market share. Regional jet makers Embraer and Bombardier, coming from the less than 100-seat commercial aircraft market,
continue to develop larger airplanes (such as the new E190-E2 program launched by Embraer). Additionally, other competitors from
Russia, China and Japan will enter the 70- to 150-seat aircraft market over the next few years, and today are studying larger types.
In October 2017, Airbus SE and Bombardier Inc. agreed to form a partnership in relation to the C-Series. The transaction remains
subject to regulatory approvals, as well as other conditions usual in this type of transaction. Completion of the transaction is currently
expected for the second half of 2018.

Customers
As of 31 December 2017, Airbus Commercial Aircraft had 399 customers and a total of 18,191 Airbus aircraft had been ordered, of
which 10,926 aircraft had been delivered to operators worldwide. The table below shows Airbus Commercial Aircraft’s largest
commitments in terms of total gross firm orders by customer for the year 2017.

Firm orders(1)Customer
AIRBUS REGISTRATION DOCUMENT 2017 -23

Wizz Air Hungary

156

Delta Air Lines

145

Frontier Airlines

134

GECAS

110

Volaris80(1) Options are not included in orders booked or year-end backlog.

Products and Services
The Family Concept — Commonality across the Fleet
Airbus Commercial Aircraft’s aircraft families promote fleet commonality. This philosophy takes a central aircraft and tailors it to create
derivatives to meet the needs of specific market segments, meaning that all new-generation aircraft share the same cockpit design, flyby-wire controls and handling characteristics. Pilots can transfer among any aircraft within the Airbus Commercial Aircraft family withminimal additional training. Cross-crew qualification across families of aircraft provides airlines with significant operational flexibility. In
addition, the emphasis on fleet commonality permits aircraft operators to realise significant cost savings in crew training, spare parts,
maintenance and aircraft scheduling. The extent of cockpit commonality within and across families of aircraft is a unique feature of
Airbus Commercial Aircraft that, in management’s opinion, constitutes a sustainable competitive advantage.
In addition, technological innovation has been at the core of Airbus’ strategy since its creation. Each product in the Airbus Commercial
Aircraft family is intended to set new standards in areas crucial to airlines’ success, such as cabin comfort, cargo capacity performance,
economic performance, environmental impact and operational commonality. Airbus Commercial Aircraft innovations often provide
distinct competitive advantages, with many becoming standard in the aircraft industry.
A320 Family. With more than 14,000 aircraft sold, of which 5,995 A320neo (new engine option) Family, and nearly 8,000 delivered (ofwhich 249 A320neo family), Airbus’ family of single-aisle aircraft, based on the A320, includes the A319 and A321 derivatives, as wellas the corporate jets family (including new members ACJ319neo and ACJ320neo). Each aircraft in the A320 Family shares the same
systems, cockpit, operating procedures and cross-section.
At 3.95 metres diameter, the A320 Family has the widest fuselage cross-section of any competing single-aisle aircraft. This provides a
roomy passenger cabin, a high comfort level and a spacious under floor cargo volume. The A320 Family incorporates digital fly-by-wire
controls, an ergonomic cockpit and a lightweight carbon fibre composite horizontal stabiliser. The use of composite material has also
been extended to the vertical stabiliser. The A320 Family’s competitor is the Boeing 737 series.
To ensure this market leader keeps its competitive edge, Airbus Commercial Aircraft continues to invest in improvements across the
product line, including development of the A320neo Family. The A320neo incorporates many innovations including latest generationengines, Sharklet wing-tip devices and cabin improvements, which together will deliver up to 20% in fuel savings by 2020. The A320neo
received joint Type Certification from the European Aviation Safety Agency (EASA) and the Federal Aviation Administration (FAA) in
November 2015. The A320neo with Pratt & Whitney engines was the first variant in the Neo Family to receive Type Certification. The
A320neo with CFM engines was certified in May 2016. The A321neo with Pratt & Whitney engines received Joint Type Certification in
December 2016 and with CFM engines in March 2017. Type Certifications for the A319neo in both engine variants will follow.
The A320neo Family versions have over 95% airframe commonality with the A320ceo (current engine option) versions, enabling themto fit seamlessly into existing A320 Family fleets – a key factor for Airbus Commercial Aircraft customers and operators who have takendelivery of nearly 8,000 A320 Family aircraft so far.
With 5,995 firm orders received from 98 customers since its launch in December 2010, the A320neo Family has captured 57% of themarket to the end of 2017.
In October 2015, Airbus Commercial Aircraft announced the decision to further increase the production rate of the Single Aisle Family to
60 aircraft a month in mid-2019, in response to strong customer demand and following thorough studies on production ramp-up
readiness in the supply chain and in Airbus Commercial Aircraft’s facilities.
In 2017, Airbus Commercial Aircraft received 1,160 gross orders for the A320 Family of aircraft (1,054 net orders), and delivered
558 aircraft (including 181 A320neo family aircraft).
The first A321neo powered by CFM engines was delivered in April 2017 to Virgin America and the first A321neo powered by P&W
engines in September to ANA.

A320 FAMILY TECHNICAL FEATURES (CURRENT VERSION)
Entry-into-service

Passenger capacity(1)Range (km)Length (metres)

Wingspan (metres)

A318

2003

107

5,750

31.4

34.1

A319

1996

124

6,950(2)

33.8

35.8

(2)

Model

A320

1988

150

6,100

37.6

35.8(3)

A321

1994

185

5,950(2)44.5

35.8(3)

140

6,950

33.8

35.8

165

6,500

37.6

35.8

206

7,400

44.5

35.8

A319neo
A320neo
A321neo2016(1) Two-class layout.
(2) Range with sharklets.

AIRBUS REGISTRATION DOCUMENT 2017 -24

(3) Wingspan with sharklets.

A330 Family. With 1,707 aircraft sold (of which 220 A330neo) and 1,323 delivered, the A330 Family covers all market segments with
one twin-engine aircraft type and is designed to carry between 247 and 277 passengers. The A330 Family offers high levels of
passenger comfort as well as large under-floor cargo areas. The competitors of the A330 Family are the Boeing 767, 777 and787 aircraft series.
The newest evolution to the A330 Family is the A330neo (new engine option), comprising the A330-800neo and A330-900neo versions.
These aircraft incorporate latest generation Rolls-Royce Trent 7000 engines. Airbus Commercial Aircraft commenced final assembly forthe first A330neo, an A330-900, in 2016. The first flight took place in October 2017 and both Type Certification and first delivery areplanned for 2018. The final assembly of the A330-800 started in November 2017 and the aircraft is on track for the first flight planned
mid-2018.
In 2017, Airbus Commercial Aircraft received 6 net orders for the A330neo.
The platform for developing the Neo is the 242-tonne maximum take-off weight A330 variant. This upgrade was first applied to theA330-300 with the first enhanced A330-300 variant delivered to Delta Airlines in May 2015 and subsequently for the A330-200.
Airbus Commercial Aircraft is also adapting the A330-300 to rapidly growing markets, where the aviation infrastructure is struggling tokeep us with surging demand. The A330 Regional, the lower-weight variant will carry up to 400 passengers on shorter haul missions
resulting in significant cost savings. Saudi Arabian Airlines became the A330-300 Regional launch customer with an order announced inJune 2015 and the first delivery in August 2016.
Airbus Commercial Aircraft is continuously developing the A330 Family to keep the aircraft at the leading edge of innovations.
In 2017, Airbus Commercial Aircraft received 25 gross orders (21 net) for the A330 Family of aircraft including 10 for the A330neo, anddelivered 67 aircraft to customers.

A330 FAMILY TECHNICAL FEATURES (CURRENT VERSION)
Model

Entry-into-service Passenger capacity(1) Maximum range (km) Length (metres) Wingspan (metres)

A330-200

1998

247

13,45058.8

60.3

A330-300

1994

277

11,75063.7

60.3

A330-800neo

257

13,90058.8

64A330-900neo

287

12,13063.7

64(1) Three-class configuration.

A380. The double-deck A380 is the world’s largest commercial aircraft flying today. Its cross-section provides flexible and innovative
cabin space, allowing passengers to benefit from wider seats, wider aisles and more floor space, tailored to the needs of each airline.
Carrying 544 passengers in a comfortable four-class configuration and with a range of 8,200 nm / 15,200 km, the A380 offers superior
economic performance, lower fuel consumption, less noise and reduced emissions. The A380’s competitor is the Boeing 747-8.
In 2017, Airbus Commercial Aircraft delivered 15 aircraft.
Following an agreement reached between Emirates Airline and Rolls-Royce and a subsequent agreement between Emirates Airline andAirbus Commercial Aircraft, Airbus is to adapt the A380 delivery stream with six aircraft deliveries shifted from 2017 to 2018 and six
others from 2018 to 2019.
Airbus Commercial Aircraft re-confirms the target to deliver around 12 aircraft in 2018 and 8 in 2019. Airbus Commercial Aircraft has anindustrially robust process to deliver down to 6 aircraft a year.
Airbus Commercial Aircraft is continuing to invest in the A380 and in 2017 announced the outcome of a development study: The
A380plus; Aerodynamic improvements, cabin enablers (new forward stairs / optimizing galleys and staircases / crew-rest) allowing 80
additional seats, bringing the baseline offering of the A380 to some 575 seats in 4 classes, additional range (+300nm) or payload (+3
tonnes MTOW), system improvements and maintenance optimisation together is expected to bring 13% COC per seat reduction
compared to today’s A380s.
Airbus Commercial Aircraft launched the iflyA380.com website enabling passengers to identify if the A380 is operated on a particularroute and to book flights directly with the airlines flying A380s.

A380 TECHNICAL FEATURES
Model
A380-800

Entry-into-service Passenger capacity(1) Maximum range (km) Length (metres) Wingspan (metres)
2007

544

15,20073.0

79.8(1) Four-class layout.

A350 XWB Family. The A350 XWB is an all-new family of wide-body aircraft, designed to accommodate between 280 and
366 passengers. The A350 XWB features A380 technology, a wider fuselage than that of competing new generation aircraft, and agreater use of composite material. The A350 XWB’s main competitors are the Boeing 787 and 777 aircraft series.
With the Ultra-Long Range version of the A350-900 launched in 2015, the A350 XWB demonstrates its versatility by offering thecapability to perform flights of up to 19 hours.
AIRBUS REGISTRATION DOCUMENT 2017 -25

Airbus Commercial Aircraft has developed the larger A350-1000, which is now certified by EASA and the FAA and was delivered to its
first customer in February 2018. This follows final assembly line start in February 2016 and a successful first flight in November 2016.
In 2016, Airbus Commercial Aircraft received 44 gross orders for the A350 XWB Family (36 net), and delivered 78 aircraft.
In July 2017, Airbus Commercial Aircraft celebrated the delivery of its 100th A350 aircraft – an A350-900 for China Airlines just some 30
months after the first delivery of an A350.

A350 XWB FAMILY TECHNICAL FEATURES
Model

Entry-into-service Passenger capacity(1) Maximum range (km) Length (metres) Wingspan (metres)

A350-900

2014

325

14,35066.8

64.7

A350-1000

2018

366

14,80073.7

64.7(1) Two-class layout.

Customer Services
Customer Services’ prime role is to support its customers in operating their Airbus fleet safely and profitably and to the satisfaction ofpassengers all around the world. As a result of its continued growth, Airbus Commercial Aircraft’s customer base has increased
consistently over the past years reaching 9,950 aircraft in-service by the end of 2017 operated by 424 customers. The fleet ismaintained by more than 100 Maintenance and Repair Organisations and partially owned by 100 leasing companies.
A worldwide network of more than 5,000 people cover all areas of support from technical engineering / operational assistance and spareparts supply, to crew and maintenance training. Hundreds of technical specialists provide Airbus Commercial Aircraft customers withadvice and assistance 24 hours a day, 7 days a week. There are 143 field service stations available worldwide for on-site assistance toour operators, covering 167 operators. 201 operators are covered by 15 Hubs. Our worldwide support is also based on an international
network of support centres, training centres and spares’ warehouses.
Beyond the core customer support activities, Airbus Commercial Aircraft has developed a comprehensive services portfolio including awide range of modular and customised services driven by the unique added value that an aircraft manufacturer can bring.
The services portfolio is clustered around four pillars: Maintenance & Engineering Solutions consisting of Flight Hour Services &Material Services, Training, Upgrades and Flight Operations.
A recent major step in the development of Customer Services is the creation of Navblue out of the Navtech acquisition in 2016. With its
comprehensive product suite of solutions for electronic flight bags (EFBs), aeronautical charts, navigation data, performance-basednavigation (PBN), flight planning, aircraft performance and crew planning, Navblue further strengthens Airbus Commercial Aircraft’s
provision of end-to-end flight operations services. At the 2016 Farnborough International Airshow, the launch of two new services has
been announced as well: Airline Operating Control Centre and Aeronautical Data solutions.
In addition, three new training centres have been opened in Singapore, Mexico and Sao Paulo, and the Services digital roadmap is
progressing well with the launch of new e-solutions on Predictive Maintenance notably.
In 2017, Sepang Aircraft Engineering (SAE), an MRO centre based in Kuala Lumpur, Malaysia, partially owned by Airbus since 2011,
has become a fully owned Airbus subsidiary, following the acquisition by Airbus of its remaining shares. It will boost growth strategy ofservices by Airbus in Asia Pacific.
Airbus launched a new offer, Airbus Interiors Services, dedicated to supporting airlines with their cabin upgrade development strategies.
At Le Bourget airshow, Airbus launched a new aviation data platform in collaboration with Palantir Technologies – pioneers in big-dataintegration and advanced analytics. Skywise aims to become the single platform of reference used by all major aviation players to
improve their operational performance and business results and to support their own digital transformation.

Customer Finance
Airbus Commercial Aircraft favours cash sales, and does not envisage customer financing as an area of business development.
However, Airbus Commercial Aircraft recognises the commercial need for manufacturers to assist customers in arranging financing of
new aircraft purchases, and in certain cases to participate in financing those aircraft for the airline.
Extension of credit or assumption of exposure is subject to corporate oversight and monitoring, and follows strict standards of disciplineand caution. Airbus Commercial Aircraft’s dedicated customer finance team has accumulated decades of expertise in aircraft finance.
When Airbus Commercial Aircraft finances a customer, the financed aircraft generally serves as collateral, with the engine manufacturer
participating in the financing. These elements assist in reducing the risk borne by Airbus Commercial Aircraft. The difference between
the gross exposure resulting from the financing and the collateral value is fully provisioned for (for further information, please refer tothe “— Notes to the IFRS Consolidated Financial Statements — Note 25: Sales financing transactions”). Airbus Commercial
Aircraft’s customer financing transactions are designed to facilitate subsequent sell-down of the exposure to the financial markets, thirdparty lenders or lessors.
In 2017, Airbus Commercial Aircraft continued to benefit from market appetite for both aircraft financing and sale and leaseback lessor
opportunities, supported by a high level of liquidity available in the market at good rates for Airbus aircraft. Despite a continued
suspension of Export Credit Agency support, Airbus Commercial Aircraft customer financing exposure remained limited in 2017 anddecreased compared to 2016. Airbus Commercial Aircraft will continue to provide direct aircraft financing support as it deems
necessary. Management believes, in light of its experience, that the level of provisioning protecting Airbus Commercial Aircraft fromdefault costs is adequate and consistent with standards and practice in the aircraft financing industry. See “— Risk Factors – Financial
Market Risks – Sales Financing Arrangements”.

AIRBUS REGISTRATION DOCUMENT 2017 -26

Asset Management
The Asset Management department was established in 1994 to manage and re-market used aircraft acquired by Airbus Commercial
Aircraft, originally as a result of customer bankruptcies, and subsequently in the context of certain buy-back commitments. The
department operates with a dedicated staff and manages a fleet comprised of used aircraft across a wide range of models. Through its
activities, the Asset Management department helps Airbus Commercial Aircraft to respond more efficiently to the medium- and longterm fleet requirements of its customers.
Its key roles comprise commercial, technical and financial risk management of its used aircraft portfolio, as well as the enhancement of
all Airbus Commercial Aircraft products’ residual value.
It also provides a full range of remarketing services, including assistance with entry-into-service, interior reconfiguration andmaintenance checks. Most of the aircraft are available to customers for cash sale, while some can also be offered on operating lease. In
the latter, the Airbus Commercial Aircraft Asset Management team aims at eventually selling down the aircraft with lease attached tofurther reduce its portfolio exposure.
At the end of 2017, the Asset Management portfolio contained 27 aircraft, representing a 27% net portfolio reduction from 2016.

Production
Industrial Organisation
Each task in the building of Airbus aircraft (from design to production) is allocated to a designated plant. The Airbus Commercial Aircraft
plants are typically organised around different aircraft components and sections, in component delivery teams. Each component delivery
team is either in charge of one aircraft programme, or organised by manufacturing technology clusters depending on the optimum
solution for each plant. Every plant is organised with production, engineering, quality, supply chain, manufacturing, engineering andlogistics capabilities to ensure a seamless production flow of operations.
A transversal “Industrial Systems” Centre of Competences is in charge of ensuring that harmonised and standardised processes,
methods and tools are developed and implemented across the plants, in order to increase efficiency, based on best practices. Anothertransversal “Manufacturing technologies” Centre of Competences is in charge of disseminating new technologies and innovation in
manufacturing across the plants and preparing manufacturing solutions for future product evolutions.
Following production by the respective plants, the various aircraft sections are transferred between the network of sites and thefinal assembly lines using dedicated transport means, such as the “Beluga” Super Transporters. To support the A380 production
flow, Airbus Commercial Aircraft has also integrated road, river and sea transport. Programme management is then responsible forthe final assembly line activities. The programme management works closely with the plants to secure delivery of aircraft sections
to the final assembly lines on time, cost and quality.
Following the commencement of aircraft assembly at the A320 Family final assembly line in Mobile, Alabama (US) in July 2015, the firstdelivery of a Mobile-assembled aircraft took place in April 2016. At the time of publication, Airbus Commercial Aircraft anticipatesdelivering four aircraft per month from the Mobile plant. The vast majority of the aircraft produced in Mobile will be delivered to North
American customers.
In 2017, Airbus Commercial Aircraft announced the following production rate:•
A320 family: rate 60 by mid 2019 with a 4th A320 line in Hamburg, Mobile fully on schedule and Tianjin (China)
ramping- up further;•

A330: rate 6 in 2018;•

A380: 12 deliveries in 2018 and 8 in 2019.

Engineering
Airbus Engineering is a global organisation that develops civil aircraft and aircraft components, and that conducts innovative research
applicable to the next generation of aircraft. Airbus Engineering operates transnationally, with most engineers employed in France,
Germany, the UK and Spain. A growing population of experienced aerospace engineers is also employed worldwide at five otherengineering centres in Wichita (Kansas, US), Mobile (Alabama, US), Moscow (Russia), Bangalore (India) and Beijing (China).
A key part of the Airbus engineering organisation is the architect and integration centre, which ensures, together with a team of senior
aircraft architects and the programme chief engineers, that a consistent and multi-disciplinary approach is applied during aircraft
development.
Research & Technology activities continue to deliver incremental innovations for existing aircraft, matured breakthroughtechnologies, with reinforced focus on industrial aspects. Airbus Engineering is a major contributor to numerous international
initiatives dedicated to the preservation of the environment and the reduction of noise and CO2 emissions. Fully integrated change
projects are also implemented to continuously implement innovative and efficient ways of working.

Regional Aircraft, Aerostructures, Seats and Aircraft Conversion
ATR
ATR (Avions de Transport Régional) is a world leader in the 30 to 78 seat regional turboprop aircraft market. Its aircraft are currently
operated by more than 200 airlines in over 100 countries. ATR is an equal partnership between Airbus and Leonardo, with Airbus’ 50%

AIRBUS REGISTRATION DOCUMENT 2017 -27

share managed by Airbus Commercial Aircraft. Headquartered in Toulouse, ATR employs more than 1,300 people. Since the start ofthe programme in 1981, ATR has registered net orders for 1,671 aircraft (465 ATR 42s and 1,206 ATR 72s).
In 2017, ATR delivered 78 new aircraft (compared to 80 in 2016) and recorded net firm orders for 103 new aircraft (compared to 32 in2016), including significant orders from Indigo and Iran Air, and an order from Fedex for the new ATR-72 F (freighter). As of 31
December 2017, ATR had a backlog of 235 aircraft (compared to 212 in 2016).

Products and Services
ATR 42 and ATR 72. ATR has developed a family of high-wing, twin turboprop aircraft in the 30- to 78-seat market which comprises the
ATR 42 and ATR 72, designed for optimal efficiency, operational flexibility and comfort. Like Airbus Commercial Aircraft, the ATR range
is based on the family concept, which provides for savings in training, maintenance operations, spare parts supply and cross-crewqualification. By the end of 2017, ATR had delivered 1,436 aircraft.
Customer service. ATR has established a worldwide customer support organisation committed to supporting aircraft over their service
life. Service centres and spare parts stocks are located in Toulouse, Paris, Miami, Singapore, Bangalore, Auckland and Johannesburg.
ATR worldwide presence also includes a representative office in Beijing.
ATR Asset Management addresses the market for second-hand aircraft by assisting in the placement and financing of used and end-oflease aircraft. ATR Asset Management activity is marginal today as the leasing market has strongly developed since 2007.

Production
The ATR fuselage is produced in Naples, Italy, and ATR wings are manufactured in Merignac near Bordeaux, France. Final assemblytakes place in Saint Martin near Toulouse on the Airbus Commercial Aircraft production site. Flight-testing, certification and deliveriesalso occur in Toulouse. ATR outsources certain areas of responsibility to Airbus Commercial Aircraft, such as wing design andmanufacturing, flight-testing and information technology.

STELIA Aerospace
STELIA Aerospace is a wholly-owned subsidiary of Airbus. Following the merger of Sogerma and Aerolia in 2015, it now offers global
solutions for aeronautical manufacturers and airlines supported by its aerostructure, cabin interior and pilot seats business lines.
As one of the world leading tier-1 aerostructure suppliers, STELIA Aerospace designs and manufactures fully integrated aircraft sections
for civil and military programs.
From full aircraft wings and fuselage sections, to fully equipped ‘plug and fly’ structures, STELIA Aerospace is a global partner for major
aeronautical players worldwide, such as Airbus, ATR, Bombardier or Boeing.
With more than 6,900 employees worldwide, working within 11 Centres of Excellence based in France, Canada, Morocco and Tunisia,
STELIA Aerospace has the capability to offer both Build-to-Print and Design & Build solutions.
Other specialisms include mechanical milling of rolled and stretched panels, and tubes & pipes covering all ATA systems.
STELIA Aerospace also designs and manufactures luxury First Class and Business Seats for key partners in the world including Etihad
Airways, Singapore Airlines or Thaï Airways.
By combining innovative materials and technology with a drive to improve the passenger experience, STELIA Aerospace has created an
outstanding range of seats used in civil aircraft globally.
STELIA Aerospace - a joint world leader Pilot seats manufacturer - provides cockpit and pilot seats for all kinds of aircraft, and offers
support from design to production, including after-sales service.
As part of its development strategy, STELIA Aerospace is actively seeking new commercial and strategic opportunities.

Premium AEROTEC
Premium AEROTEC is a wholly owned subsidiary of the Company (consolidated within Airbus Commercial Aircraft), is one of theworld’s leading tier-1 suppliers of commercial and military aircraft structures and is a partner in the major European international
aerospace programmes.
Its core business is the development and production of large aircraft components from aluminum, titanium and carbon fiber composites(CFRP). Premium AEROTEC is Europe’s no.1 in this segment with roughly 10,000 employees at various sites in Germany andRomania. Premium AEROTEC is represented by its products in all Airbus Commercial Aircraft programmes. The current military
programmes include the Eurofighter “Typhoon” and the new military transport aircraft A400M.
Besides main customer Airbus, Premium AEROTEC will further intensify business with other customers and actively approach otheraircraft or structural manufacturers. The Company is also striving to expand its maintenance, repair and spare parts business.
In order to contribute successfully to the shaping of the future of aviation, the engineers and developers at Premium AEROTEC arecontinuously working on the new and further development of lightweight and highly durable aircraft structures. They cooperate closelywith universities and research institutes in the process. Premium AEROTEC plays a significant role in the design of new concepts insuch fields as carbon composite technologies (incl. thermoplastic processes) or 3D-printing of aircraft components made of titanium or
aluminum.

AIRBUS REGISTRATION DOCUMENT 2017 -28

Elbe Flugzeugwerke GmbH — EFW
EFW combines various aviation and technology activities under a single roof: development and manufacturing of flat fibre-reinforced
composite components for structures and interiors, the conversion of passenger aircraft into freighter configuration, maintenance andrepair of Airbus Commercial Aircraft aircraft as well as engineering services in the context of certification and approval.
On 17 June 2015, Airbus Commercial Aircraft signed an agreement with Singapore-based ST Aerospace Ltd. (STA) to offer passengerto-freighter (P2F) conversion solutions for its A320 and A321 aircraft. STA acquired an additional 20% of the shares of EFW, Dresden(Germany) by way of a contribution in kind and a capital increase to EFW. The transaction closed on 4 January 2016. Consequently,
45% of the shares of EFW were retained and Airbus effectively lost its control over EFW (previously reported in Airbus Commercial
Aircraft).

1.1.3

Helicopters

Airbus Helicopters is a global leader in the civil and military rotorcraft market, offering one of the most complete and modern ranges ofhelicopters and related services. This product range currently includes light single-engine, light twin-engine, medium and medium-heavy
rotorcraft, which are adaptable to all kinds of mission types based on customer needs. See “— 1.1.1 Overview” for an introduction to
Airbus Helicopters.

Strategy
Airbus Helicopters’ strategy is to continue driving improvement initiatives via its company-wide digital transformation plan, which places
customer satisfaction, quality and safety at the core of its operations, along with increasing industrial competitiveness.

A Commitment to Innovation
Development of the next-generation H160 medium helicopter – the first of the “H Generation” – is ongoing at a steady pace. Flight-test
activities were carried out throughout 2017. The third H160 prototype has been introduced in early October enabling flight tests toaccelerate with the final assembly line in Marignane being in the final stages of preparation. In 2017, products and services continued to
be enhanced, with several initiatives such as the ongoing development of the H175 Public Services version for delivery in 2018 and thefirst fire campaign of the H145 equipped with H-Force suite for German Special Operation Forces.
Airbus Helicopters is investigating future unmanned VTOL (Vertical Take-off and Landing) systems. In that frame, Airbus Helicopters iscurrently working on the design and development of the VSR700 unmanned aerial vehicle. The French DGA (Direction Générale del’Armement) has awarded a contract to the Naval Group and Airbus Helicopters consortium to identify, deploy and test the necessary
technologies for the integration of a tactical drone-system capacity within a heavily armed vessel.
Airbus Helicopters is also exploring Urban Air Mobility (UAM) via theCityAirbus project, which is an electrically operated platform
concept for multiple passengers. As part of Clean Sky 2 European Research programme, Airbus Helicopters has unveiled at the Le
Bourget airshow the aerodynamic configuration of the high speed demonstrator codenamed Racer. This demonstrator will incorporate ahost of innovative features and will be optimised for a cruise speed of more than 400 km/h. Beyond the platform Airbus Helicopters
wants to play a leading role in UAM services like on-demand helicopter booking platforms. Voom, now operational in Sao Paulo, will be
the entity that will provide this new service to be deployed to other locations notably in the Americas and Asia-Pacific.

Focusing on Customers
Airbus Helicopters achieved the first wave of its transformation plan in 2017 by further enhancing customer support and services, withsafety as the top priority. This is underscored by indicators like increasing fleet availability for customers and operators, or improved On
Time Delivery rates for spare parts.

Delivering Safety
An H225 Super Puma helicopter was involved in an accident on 29 April 2016. Management is cooperating fully with the authorities todetermine the precise cause of the accident. Subsequently, Airbus Helicopters has reviewed and applied new safety measures to its
product range. Furthermore, design changes have been introduced on the Super Puma and Dauphin family of helicopters.
Airbus Helicopters' chief priority is to enhance flight safety for the thousands of men and women around the world who are transported
in its aircraft every day. This commitment is reflected across all company activities involving the lifecycle of a helicopter, with focus on
meeting and exceeding industry safety standards and supporting the safe operation of its aircraft.

Market Drivers
According to market forecasts produced by Airbus Helicopters, around 22,000 civil helicopters and 14,000 military helicopters are
expected to be built globally over the next 20 years (all turbine helicopters). This forecast, particularly with respect to the military sector,
relies to a large extent on large US development programmes. Overall, the global helicopter market is still evolving in a difficult
environment, despite improved economic indicators in 2017.

AIRBUS REGISTRATION DOCUMENT 2017 -29

Helicopters sold in the civil and parapublic sector, where Airbus Helicopters is a leader, provide transport for private owners andcorporate executives, offshore oil operations, diverse commercial applications and state agencies, including coast guard, police, medical
and fire-fighting services. Thanks to its existing mission segment diversity, the helicopter market (both Platforms and Services activities)
is expected to be resilient through the coming decade, even though one of the key segments, Oil & Gas (in value), continues toexperience challenging conditions. Airbus Helicopters expects market softness to continue in the short term but believes that thedemand over the next 20 years will be driven by large replacement needs from advanced economies and by growth from emerging
countries (especially in Asia still largely under equipped). Airbus Helicopters’ market data indicates that in 2017, worldwide deliveries ofcivil and parapublic turbine helicopters over five seats stood at ~520 units.Demand for military helicopters and related services is mainly
driven by budgetary and strategic considerations, and the need to replace ageing fleets. Airbus Helicopters believes that the advanced
age of current fleets, the emergence of a new generation of helicopters equipped with integrated systems and the on-going introductionof combat helicopters into many national armed forces will contribute to increased military helicopter procurement in the medium term.
Nevertheless, demand from the military sector has historically been subject to large year-to-year variations due to evolving strategic
considerations, and may be limited, due to budgetary constraints on public spending in some regions like Western Europe and Middle
East, while other regions like Asia Pacific or Eastern Europe are expected to continue to grow. Despite recent threats and a growing
geopolitical instability, which has accelerated military spending and a reassessment of defence budgets, the military market is still low in2017. Economic difficulties (i.e., low commodities prices), saturation of the Western countries markets as well as postponement ofsignificant military campaigns have resulted in a decrease for all mission segments. According to Airbus Helicopters’ market data,worldwide deliveries of military turbine helicopters stood at ~700 units in 2017.

Competition
Airbus Helicopters’ primary competitors in the civil and parapublic sector are Leonardo and Bell Helicopter. Sikorsky and Russian
Helicopters (except in Russia) continue to reflect very low order intake in the C&P market while concentrating their activity on the
military sector.
The civil and parapublic sector has seen more local competitors in recent years (China, India, Japan, South Korea, Turkey). Airbus
Helicopters has consolidated its market share (in bookings of 2.0t helicopters and five seats and above), in a low market, with 50% inunit in 2017, followed by Bell and Leonardo with respectively 18% and 17%.
Airbus Helicopters’ main competitors in the military sector are Sikorsky, Boeing and Russian Helicopters, thanks to large captive market
and strong political support for export.
The military sector is highly competitive and is characterised by major restrictions on foreign manufacturers’ access to the domestic
defence bidding process (i.e. USA, China, Russia). Thanks to several Super Puma family contracts, Airbus Helicopters increased its
market share on this sector (in value) from 4% in 2016 to 12% in 2017. Airbus will continue to focus on large military campaigns in 2018.

Customers
More than 3,000 operators currently fly Airbus Helicopters’ rotorcraft in over 150 countries. Airbus Helicopters’ principal military clientsare Ministries of Defence (“MoDs”) in Europe, Asia, the US and Latin America. In the civil and parapublic sector, Airbus Helicopters hasa leading market share in Europe, the Americas and Asia-Pacific.
With 50% of the worldwide market share-based on deliveries, the versatility and reliability of Airbus Helicopters products have madethem the preferred choice of the most prominent civil and parapublic customers (turbine helicopters over five seats).

Products and Services
Airbus Helicopters offers a complete range of helicopters that covers nearly the entire civil and military market spectrum, which it
continuously improves with leading-edge technologies. This product range includes light single-engine, light twin-engine, medium andmedium-heavy helicopters, and is based on a series of new-generation platforms designed to be adaptable to both military and civil
applications. In addition, products share multiple technical features as part of a family concept approach.
The following table sets forth Airbus Helicopters’ existing product line, consisting of optimised products for different mission types:

Helicopter TypePrimary Missions

Single Engine (“Ecureuil” family)
H125 “Ecureuil” /H125M “Fennec”
H130

Public Services(1), Military Utility(2) & Armed Reconnaissance,
Corporate / Private, Commercial Pax Transport & Aerial Work
Commercial Pax Transport & Multipurpose, Emergency Medical, Tourism, Corporate /PrivateLight Twin Engine
H135 / H135M
H145 / LUH (UH-72) / H145M

VIP, Military Utility & Armed Reconnaissance, Emergency Medical, Public Services(1)VIP, Military Utility(2), Emergency Medical, Public Services(1)Medium (“Dauphin” family)
AS365 “Dauphin” / AS565 “Panther”

Military Naval Warfare Mission & Maritime Security, Public Services(1)(in particular Coast Guard & SAR), Oil & Gas, Commercial Pax Transport & Multipurpose

H155

Corporate / Private, VIP, Oil & Gas, Public Services(1)H175

Corporate / Private, VIP, SAR, Emergency Medical, Public Services(1), Oil & Gas

Medium-Heavy
H215 “Super Puma” / H215M “Cougar”

Civil Utility, Military Transport / SAR, Oil & Gas
AIRBUS REGISTRATION DOCUMENT 2017 -30

H225 / H225M

SAR, Combat-SAR, Military Transport, Oil & Gas, VIP, Public Services(1)NH90 (TTH / NFH)

SAR, Military Transport, Naval

AttackTiger

Combat, Armed Reconnaissance / Escort(1) Public Services includes homeland security, law enforcement, fire-fighting, border patrol, coast guard and public agency emergency medical services.
(2) Civil Utility includes different kinds of commercial activities such as aerial works, electrical new gathering (ENG), passenger and cargo transport.

Airbus Helicopters confirms serial production of the H120 has ended in September 2017. The decision to stop production of the H120 is
the result of Airbus Helicopters’ strategy to focus on markets where high-end technologies bring most value to customers.

Civil Range
Airbus Helicopters’ civil range includes light single-engine, light twin-engine, medium and medium-heavy helicopters, which areadaptable to all mission types based on customer needs. To maintain and strengthen its competitive edge in the civil sector, Airbus
Helicopters is pursuing a fast-paced product range renewal. This entails development for the next generation of helicopters with theH175 Public Services variant and the H145 H-Force.
In the civil market, Airbus Helicopters is preparing the future – the H Generation – embodied by the all-new, medium-weight H160 civil
helicopter which was unveiled and started flight testing.

Military Range
Airbus Helicopters’ military range comprises platforms derived from its commercial range (such as the H225M derived from the H225)
as well as purely military platforms developed for armed forces (the NH90 and the Tiger).
Designed for modern multi-mission capabilities and cost effectiveness throughout its lifecycle, the NH90 has been developed as a multirole helicopter for both tactical transport (TTH) and naval (NFH) applications. The programme, mainly financed by the governments ofFrance, Germany, Italy and the Netherlands, has been jointly developed by Airbus Helicopters, Leonardo of Italy and Fokker Services of
the Netherlands as joint partners in NATO Helicopter Industries (“NHI”) in direct proportion to their countries’ expressed procurement
commitments. Airbus Helicopters’ share of NHI is 62.5%. There were 40 NH90 deliveries in 2017, for a cumulative total of 345 deliveries
as of the end of 2017. The NH90 fleet has accumulated ~145,000 flight hours.
The Tiger combat attack helicopter programme includes four variants based on the same airframe: the HAP (turreted gun, rockets andair-to-air missile); the UHT (antitank missile, air-to-air missile, axial gun and rockets); the ARH (antitank missile, turreted gun androckets); and the HAD (antitank missile, air-to-air missile, turreted gun, rockets and upgraded avionics and engines) Overall in 2017,17 Tigers were delivered, for a cumulative total of 171 deliveries by year-end. The Tiger fleet has accumulated more than 96,000 flight
hours.
Airbus is also a major contractor to the US Army, having been chosen to supply the service’s UH-72A Lakota helicopter. As of 1 January
2018, 430 aircraft had been delivered to the US Defense Department for operation by US Army and Army National Guard units, theNavy and foreign military sales buyers.

Customer Services
With more than 3,000 operators in over 150 countries, Airbus Helicopters has a large fleet of some 12,000 in-service rotorcraft tosupport. As a result, customer service activities to support this large fleet generated 44% of Airbus Helicopters’ revenues for 2017 after
the disposal of Vector Aerospace in November 2017.
Airbus Helicopters’ customer service activities consist primarily of maintenance, repairs, spare parts supply, training and technicalsupport. In order to provide efficient worldwide service, Airbus Helicopters has established an international network of subsidiaries,
authorised distributors and service centres.

Production
Airbus Helicopters’ industrial activities in Europe are conducted in four primary locations, two in France, one in Germany and one in
Spain. The French sites are in Marignane, southern France and Paris-Le Bourget. The German site is located in Donauwörth, and the
Spanish site is located in Albacete.
In the US, Airbus Helicopters, Inc. has two industrial sites: Grand Prairie, Texas and Columbus, Mississippi. Grand Prairie serves as thecompany’s headquarters and main facility and also serves as the Airbus Helicopters Training facility for North America. The Columbus
facility is dedicated to the assembly and delivery of the UH-72A Lakota and H125.
In Australia, Australian Aerospace assembles, upgrades and maintains NH90 and Tiger for the country’s armed forces; while a rotarywing centre of excellence in Helibras — Itajuba, Brazil produces, assembles and maintains H225M helicopters acquired by the Brazilian
armed forces.

AIRBUS REGISTRATION DOCUMENT 2017 -31

1.1.4

Defence and Space

Airbus Defence and Space develops and engineers cutting-edge products, systems and services in the field of defence and space,enabling governments, institutions and commercial customers to protect people and resources while staying connected to the world.
Airbus Defence and Space is organised in four Programme Lines: Military Aircraft; Space Systems; Communications, Intelligence &Security (CIS); and Unmanned Aerial Systems (UAS), which are focusing on the following key activities respectively:•

Military Aircraft designs, develops, delivers and supports military aircraft. It is the leading fixed-wing military aircraft centre inEurope, and one of the market leaders for combat, mission, transport and tanker aircraft worldwide. Key products include
the Eurofighter Typhoon, the A400M, the A330 Multi Role Tanker Transport (MRTT) and the C295.

•

Space Systems covers a broad range of civil and military space applications. Its satellite solutions for telecommunications,
earth observation, navigation and science include spacecraft, ground segments and payloads. It also manufactures orbitaland space exploration systems. Space transportation capabilities (comprising launchers and services) are offered via
ArianeGroup, a 50/50 joint venture between Airbus and Safran.

•Communications, Intelligence & Security (CIS) includes four business clusters: Secure Communications, Intelligence, Cyber
Security and Security Solutions. These clusters develop specific solutions for customers ranging from governments to small
companies and commercial enterprises. In addition, CIS houses a dedicated unit for developing future applications forcommercial markets, leveraging Airbus Defence and Space innovations, products and capabilities.

•

Unmanned Aerial Systems (UAS) develops, delivers and operates UAS and UAV solutions for airborne intelligence,
surveillance, reconnaissance, and combat missions. The commercial part of the UAS Programme Line, Airbus Aerial,delivers actionable data for different vertical markets, connectivity and cargo delivery services – fitting customer needs.

Strategy
The ambition of Airbus Defence and Space is to become the world's leading provider of smart aerospace and defence solutions.
Following a comprehensive strategy review and update in 2016, Airbus Defence and Space is currently implementing a growth strategy
based on strengthening its core product portfolio and expanding the services business, with a major emphasis on digitalisation(“Smarter Products – More Services – More Digital”).
This growth strategy includes the following objectives:•

Shape the next generation of integrated combat systems and services: As a replacement for the current generation ofEuropean combat aircraft, our vision for Future Air Power is based on a secure, interconnected, scalable and upgradable system ofmanned and unmanned platforms, including a new fighter and enhanced sensors and effectors.

•

Lead the market in multi-mission and military transport solutions: We will develop further upgrades and capabilities for our
A330 MRTT and C295 platforms including greater connectivity and automatization. We will progress our products towards multimission capability and will enlarge our portfolio.

•

Build an innovative UAS portfolio for commercial and military applications: In the area of commercial UAS, Airbus Aerial will
focus on remote sensing, cargo drone services and connectivity applications. In defence we will shape sovereign European
programmes such as a medium-altitude, long-endurance UAS, while concurrently developing teaming and swarming solutions.

•

Take leadership in space solutions: As the no. 1 in Europe and no. 3 in the world, we aim to further strengthen our position bypushing innovation and accessing new customers. We will develop next generation space-based systems to deliver earthobservation, telecom and connectivity solutions, and offer cutting-edge in-orbit services.

•

Establish a leading position in cyber for governments and critical industries: We will protect Airbus and its products against
cyber attacks, and develop solutions to protect government and critical industry assets, products and operations.

•

Make digital services and secure connectivity our new growth engine: Digital platforms will be a key enabler for the creationof future data-driven services and new business models, e.g. drone services, imagery intelligence or aircraft in-service support. We
also aim to be a leader in end-to-end secure connectivity across satellite, terrestrial, maritime and airborne networks.

•

Grow our capability in the US: Leveraging our existing products and services, we will strengthen our position in the US market
through innovation and select strategic partnerships.

MarketAirbus Defence and Space is mainly active in public and para-public markets. As a general trend, defence budgets in Europe are set togradually increase, triggered by heightened security risks and reinforced by recent discussions on the NATO commitments. In addition,
the implementation of the European Defence Action Plan of November 2016 was bolstered by the joint declaration published in July
2017 by the French and German governments outlining the intention to strengthen European defence, including the joint development ofmilitary and security capabilities; together, these may provide new sales opportunities through members’ collaborative procurement
mechanisms. Market access outside the home countries may be subject to restrictions or preconditions such as national content.
Nevertheless, Airbus Defence and Space, in conjunction with Airbus, is well-placed to benefit from growth potential in defence across its
solutions.
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Military Aircraft
Customers
The Military Aircraft Programme Line with its products combat aircraft, military transport aircraft, mission aircraft and related services
supplies the public sector, mainly armed forces.
Customer relationships in this segment are characterised by their long-term, strategic nature and long decision-making cycles. Once a
contract is signed, its life span including considerable services business often amounts to decades. Beyond a strong foothold in homecountries, the customer base is increasingly global, in particular due to the success of the A330 MRTT and C295 programmes.
The turbulence created by changes in the US administration and the Russian situation is gradually leading to a shift in importance ofdefence in Europe. The commitment to go towards a 2% of GDP is being gradually pursued and should lead to new optimism for thesector. The Franco-German declaration in summer 2017 and the establishment of “Permanent Structured Cooperation (PESCO)” by theEuropean Union on 11 December 2017 are also clear signals in this direction.
With its C295 platform, Military Aircraft has also entered into the leasing market for civil operation, such as the UN World Foodprogramme, and is looking for other civil opportunities.

Competitors
The market for military aircraft is dominated by large- and medium-sized American and European companies capable of complex
system integration. Among the competitive factors are affordability, technical and management capability, the ability to develop andimplement complex, integrated system architectures and the ability to provide solutions to customers. In particular special mission
aircraft, such as heavy tankers, are derived from existing aircraft platforms. Adapting them requires thorough knowledge of the basic
airframe, which generally only the aircraft manufacturer possesses. The skills necessary for the overall systems integration into theaircraft are extensive and the number of participants in the world market is very limited.
The main competitors in military transport and mission aircraft include Boeing, Lockheed Martin, Leonardo, UAC, Kawasaki, Ilyushin,
AVIC and Antonov/Taqnia.
Heavy military transport has historically been driven by US policy and budget decisions and has therefore been dominated by US
manufacturers and split in strategic and tactical aircraft segments. The A400M represents the company’s entry into this market, at a time
when nations are expected to begin replacing their existing fleets. The aircraft is designed to disrupt the divide between strategic andtactical transport by offering both capabilities in one. This saves both time and cost as you can fly a long range strategic aircraft into atactical zone of operation.
In revenues, Airbus is the largest continental European combat aircraft manufacturer. The major combat aircraft activities are taking
place through the contribution to the Eurofighter Typhoon programme jointly with the consortium partner companies BAE Systems andLeonardo. Competitors in the segment of combat aircraft include Boeing, Dassault, Lockheed Martin, Saab and Sukhoi.

Market Trends
The sale of aircraft is expected to remain sound in the transport and special mission aircraft segments and even grow considerably forthe heavy transport segment, where the A400M occupies a unique position.
In 2017, a contract for the supply of 24 units to Qatar was secured for the Eurofighter Typhoon consortium. A number of further sales
are expected, prolonging the Eurofighter Typhoon production life.
After-Sales Services are an important business for Military Aircraft and are undergoing strong growth in line with the deliveries of A400M
and A330 MRTT on top of the existing robust revenue stream associated with Eurofighter Typhoon in-service support.
The announcement of France and Germany in July 2017 to jointly develop and procure the next generation fighter jet may also
contribute to safeguarding critically-needed European defence capabilities in the future.

Space Systems
Public Sector: Satellites, Space Infrastructure, Launchers, Deterrence
In the public market for Earth observation, scientific / exploration and navigation satellites, competition in Europe is organised on anational and multinational level, primarily through the European Space Agency (ESA), the European Commission (EC) and national
space agencies.
Decisions at the latest ESA Ministerial Conferences and under EC Horizon 2020 paved the way for future European programmes inwhich Airbus Defence and Space does or may seek to participate. There is also important export demand for Earth observation
systems, for which the company is a leading provider. The export market is expected to continue growing over the medium-term.
For military customers, demand for telecommunication and observation satellites has increased in recent years.
The equipment segment can rely on a stable European market, with potential growth to come from developing space countries as wellas the US.
The orbital infrastructure segment comprises manned and unmanned space systems mainly used for space exploration, i.e. scientificmissions. Demand for orbital infrastructure systems originates solely from publicly funded space agencies, in particular from ESA,
NASA, Roscosmos (Russia) and NASDA (Japan). Such systems are usually built in cooperation with international partners. The
International Space Station (ISS), together with related vehicle and equipment development programmes and services, constitutes the
predominant field of activity in this segment and Airbus Defence and Space leads as prime contractor on industrial level the European
contribution to the international Space Station ISS. Airbus Defence and Space is involved in NASA’s Orion project as the prime
contractor for the European contribution: the mission-critical service module of the MPCV (Multi-purpose Crew Vehicle) Orionspacecraft, which will allow astronauts to fly beyond low Earth orbit for the first time since the American Apollo programme.

AIRBUS REGISTRATION DOCUMENT 2017 -33

The joint venture ArianeGroup is prime contractor for the Ariane 5 launcher system. ArianeGroup is contracted for the development of
the future Ariane 6 launcher and is the prime contractor responsible for the development, manufacturing and maintenance of the French
deterrence systems.

Commercial Sector: Telecommunications Satellites, Launch Services
The commercial telecommunication satellite market is highly competitive, with customer decisions primarily based on price, technicalexpertise and track record. The main competitors for telecommunications satellites are Boeing, Lockheed Martin, MDA and Orbital in the
US, Thales Alenia Space in France and Italy, and Information Satellite Systems Reshetnev in Russia. The market for
telecommunications satellites is expected to remain largely stable over the coming years at a level of approximately 20 orders per year
on average.
The market for commercial launch services continues to evolve. Competitive pressure is increasing in light of other competitors enteringor coming back into the market. ArianeGroup provides a complete range of launch services with the Ariane, Soyuz, Vega and Rockot
launchers. Competitors for launch services include ILS, SpaceX, ULA, Sea Launch and CGWIC. The accessible market to Arianespacefor commercial launch services for geostationary satellites is expected to remain stable at around 20 payloads per year. However, due
to various factors (such as technology advances, increasing competition and consolidation of customers), this figure remains volatile.
This market does not include institutional launch services for the US, Russian or Chinese military and governmental agencies.
In 2015 Airbus Defence and Space announced the creation of OneWeb Satellites JV, an equally owned company with OneWeb that will
design and build 900+ satellites for the OneWeb constellation programme. This satellite constellation aims to provide competitive global
internet access. This participation is entrepreneurial in nature and is meant to drive innovation in a new space market – an area that is
set to expand dramatically in coming years. In 2017, OneWeb Satellites JV broke ground on the world’s first state of the art high-volume
satellite manufacturing facility in Exploration Park, Florida, and inaugurated its serial production line for the assembly, integration, andtest of OneWeb’s first satellites in Toulouse.

Communications, Intelligence & Security
The Communications, Intelligence and Security (CIS) Programme Line brings together the growing but increasingly competitive market
for satellite and terrestrial communication, intelligence and security services and solutions. CIS serves a common customer base which
includes governments, defence institutions, security and public safety agencies, and increasingly commercial sectors such astransportation (maritime, aviation, road), energy (oil, gas, electricity), mining and agriculture.
This programme line is divided into four clusters: Intelligence, Secure Communications, Cyber Security and Security Solutions.
Through Intelligence, Airbus Defence and Space develops Command and Control solutions for Ministries of Defence. Competitors inthis area largely come from European or American based defence companies. Intelligence is also amongst the largest players in thesatellite imagery (optical and radar) market. This sector remains mainly government orientated. However, the demand for satellite
imagery is growing in commercial markets as many companies see geospatial data as key information for their business development.
Through its Secure Communications cluster, Airbus Defence and Space is also a leader in governmental satellite communications. This
cluster offers a full portfolio of mobile and fixed satellite communication and terrestrial secure communications solutions for application
at sea, on land and in the air. Customers are Ministries of Defence, Ministries of Interior and NGOs.
Airbus Defence and Space is also a leading provider of cyber security products and services, including consultancy services in Europe.
The market growth is driven by an exponential increase of cyber-attacks, the increase in use of connected assets and global digitaltransformation. Customers are governments and private companies with a high grade security requirement.
In addition to the business clusters, CIS also houses Future Applications, which is a business accelerator taking existing capabilities
from anywhere within the Division to new markets not traditionally served. The goal is to form stable and sustainable new businessbringing profitable revenue to Airbus Defence and Space on a scale significant to the Division within five years.
CIS focuses on public customers such as armed forces for government satellite communications, where we have long-term
relationships with our customers. Whereas budget pressures on public expenditure are high in Europe, investment into the services andsolutions offered by CIS is likely to continue in the face of new global security threats, a re-emphasis on defence and security and thegrowth in demand for digital services. CIS has the objective to develop and scale digital services e.g. new services based on data
generated by existing Airbus Defence and Space products to generate significant profitable revenues.

Unmanned Aerial Systems
Customers
Unmanned Aerial Systems could lead to diversification into services-driven markets. It is also a sector in which Europe has a strong
need for investment, which could set the stage for new cooperation programs. France, Germany, Italy and Spain have signaled theirintention to cooperate on a medium altitude, long endurance Unmanned Aerial System and Airbus Defence and Space is participating in
the two-year definition study of the system.

Competitors
With regards to platforms, Chinese, Israeli and US firms are well established in the Unmanned Aerial Systems market segment, alongwith other European companies such as BAE Systems, Dassault and Thales, who are competing for new European projects. The
market itself features strong growth with significant opportunities in Europe, the U.S. and Asia Pacific.

Market Trends
Unmanned Aerial Systems have a very promising growth potential. Market structures in this segment are not clearly set out yet and will
see some movement, including a new European collaborative program. Services verticals will offer increasingly interesting prospects as
the market evolves.

AIRBUS REGISTRATION DOCUMENT 2017 -34

Products and Services
Military Aircraft
A400M — Heavy military transport. The A400M is designed to be the most capable new generation airlifter on the market today. It is
designed to meet the needs of the world’s armed forces and other potential operators for military, humanitarian and peacekeeping
missions in the 21st century. The A400M is designed to do the job of three different types of military transport and tanker aircraft
conceived for different types of missions: Tactical (short to medium range airlifter capability with short, soft and austere field operating
performance), strategic transport (longer range missions for outsized loads) as well as tactical tanker.
A total of 174 aircraft have been ordered so far by the seven launch customer nations Belgium, France, Germany, Luxemburg, Spain,
Turkey, the UK and one export customer, Malaysia. Type Certificate and Initial Operating Clearance have been achieved in 2013. Since
then, 57 units have been delivered to six nations by the end of 2017. The A400M is already deployed operationally since 2014 andmilitary capability is expected to grow over time.
Multi-role tanker transport — A330 MRTT. The A330 MRTT, a derivative of the Airbus A330 family, offers military strategic airtransport as well as air-to-air refueling capabilities. Its large tank capacity is sufficient to supply the required fuel quantities without theneed for any auxiliary tanks. This allows the entire cargo bay to be available for freight, with the possibility of incorporating standard LD3or LD6 containers, military pallets and/or any other type of load device in use today, as well as the full cabin available for personnel
transport. The A330 MRTT is equipped with state of the art refueling systems, including an Aerial Refueling Boom System (ARBS) andunder-wing refueling pods. At the end of 2017, the A330 MRTT programme has a total of 56 aircraft firm orders by eight customers, ofwhich 29 already delivered and in service in four nations.
Eurofighter Typhoon combat aircraft. The Eurofighter Typhoon multi-role combat aircraft (also referred to as Typhoon) has been
designed to enhance fleet efficiency through a single flying weapon system capable of fulfilling both air-to-air and air-to-ground
missions.
The Eurofighter Jagdflugzeug GmbH shareholders are Airbus Defence and Space (46% share), BAE Systems (33% share) andLeonardo (21% share). With regard to series production, the respective production work shares of the participating partners within theEurofighter Typhoon consortium stand at 43% for Airbus Defence and Space, 37.5% for BAE Systems and 19.5% for Leonardo. Airbus
Defence and Space develops and manufactures the center fuselage and the right wing and leading edge slats for all aircraft, and is incharge of final assembly of aircraft ordered by the German and Spanish air forces. In addition Airbus Defence and Space is responsible
for the development of the flight control system and the identification and communication sub-systems.
Airbus Defence and Space signed long-term global sustainment and material availability contracts for the Eurofighter Typhoon weapon
system with the UK, Spain, Italy and Germany. The new agreement on Contract 1, effective 1st January 2017, runs for five years and is
the second phase of sustainment for the Eurofighter Typhoon weapon system for all core nations forming the baseline for all in-service
activities.
The new Contract 3, also effective from 1 January 2017, runs as well for five years and is the first milestone on the way to performancebased logistics securing for the first time material availability for the Spanish and German air forces.
At the end of 2017, a total of 599 Eurofighter Typhoon aircraft had been ordered by eight customers (UK, Germany, Italy, Spain, Austria,
Saudi Arabia, Oman and Kuwait), with a total of 532 aircraft delivered. Export opportunities are being actively developed together withthe other shareholders of the Eurofighter consortium.
C295 — Light and Medium military transport/mission aircraft. The C295 is the work horse of tactical military transport, conducting
logistical missions including the transport and delivery of personnel and cargo as well as medical evacuations. The aircraft are deployed
in demanding environments (meteorological conditions, operational complexity, etc.), such as peacekeeping on the Sinai Peninsula. The
aircraft are offered in varied versions and configurations beyond the traditional airlifter version, for example maritime patrol and antisubmarine warfare, airborne early warning and control, firefighting and intelligence surveillance reconnaissance (ISR), etc. In more than
30 years in service, this family of aircraft has proven to be robust, reliable, high-performing, efficient, flexible, easy to operate in any
environment, and at low operating costs. 490 orders had been recorded for both CN235 and C295 types together at the end of 2017,with 22 aircraft ordered in 2017
Customer Services. Airbus Defence and Space offers and provides various services for and related to military aircraft. Throughout the
lifetime of our aircraft, Military Aircraft Services includes integrated logistics support, in-service support, maintenance, upgrades, training
or flight hour service. For example, the A330 MRTT contract with the UK Ministry of Defence through the AirTanker consortium includes
alongside 14 aircraft the provision for all necessary infrastructure, training, maintenance, flight management, fleet management andground services to enable the Royal Air Force to fly air-to-air refueling and transport missions worldwide. Customer services go beyond
the fleet of aircraft currently in production at Airbus Defence and Space, conducting upgrade programs for aircraft such as the Tornado
and P-3 Orion. Airbus Defence and Space maintains a network of Maintenance, Repair and Overhaul centers strategically locatedthroughout the world for greater proximity to the customer, for example in Seville or Manching in Europe, in Mobile, Alabama (US) or at
subsidiaries in Saudi Arabia or Oman.

Space Systems
Manned Space Flight. Airbus Defence and Space has been the prime contractor for the European part of the International Space
Station (ISS). This includes the development and integration of Columbus, the pressurised laboratory module on ISS with anindependent life-support system successfully in orbit since 2007. It provides a full-scale research environment under microgravity
conditions (material science, medicine, human physiology, biology, Earth observation, fluid physics and astronomy) and serves as atest-bed for new technologies.
In 2015, ESA awarded Airbus Defence and Space a contract to handle the engineering support of the European components of the ISS,
which represents a key part of the ISS operational activities. Airbus Defence and Space was also the prime contractor for the

AIRBUS REGISTRATION DOCUMENT 2017 -35

development and construction of the Automated Transfer Vehicle (ATV) cargo carrier. The expertise gained on the ATV served to
become the prime contractor for the European service module of NASA’s next generation manned capsule MPCV Orion.
Launch services. Airbus Defence and Space is active in the field of launch services through its ArianeGroup joint venture.
ArianeGroup is responsible for the coordination and programme management of civil activities of the launcher business and relevant
participations that have been transferred. ArianeGroup owns a total 74% stake in Arianespace, 46% of Starsem and 51% of Eurockot,
providing a complete range of launch services with the Ariane, Soyuz, Vega and Rockot launchers.
Commercial launchers. ArianeGroup manufactures launchers and performs research and development for the Ariane programmes.
Member States, through ESA, fund the development cost for Ariane launchers and associated technology. Airbus Defence and Spacehas been the sole prime contractor for the Ariane 5 system since 2004. In December 2014, the Ariane 6 programme was decided by
ESA ministerial conference with an approval of the joint Airbus Defence and Space and Safran concept. In addition a new industrial setup was announced with the creation of ArianeGroup between the two main Ariane manufacturers. This vertical integration secures the
future by cutting costs and being more competitive. Ariane 6 is targeted to be launched in 2020.
Telecommunication satellites. Airbus Defence and Space produces telecommunication satellites used for both civil and military
applications, such as television and radio broadcasting, fixed and mobile communication services and Internet broadband access.
Current Airbus Defence and Space geostationary telecommunication satellites are based on the Eurostar family of platform, the latest
version of which is the Eurostar E3000, including an all-electric variant. In 2015, Airbus Defence and Space also started thedevelopment of the Eutelsat Quantum telecommunication satellite, which will be the first satellite that can be fully reconfigured in orbit
through its flexible antennae and repeater. Through its contract with OneWeb to design and produce 900 small telecommunication
satellites for a constellation in Low Earth Orbit, Airbus Defence and Space is spearheading the industrial and commercial developmentof very large satellite constellations.
Observation and scientific / exploration satellites. Airbus Defence and Space supplies Earth observation satellite systems including
ground infrastructures for both civil and military applications. Customers can derive significant benefits from the common elements ofAirbus Defence and Space’s civil and military observation solutions, which allow the collection of information for various applications,such as cartography, weather forecasting, climate monitoring, agricultural and forestry management, mineral, energy and water
resource management, as well as military reconnaissance and surveillance.
Airbus Defence and Space also produces scientific satellites and space infrastructure, which are tailor-made products adapted to thespecific requirements of the mostly high-end mission assigned to them. Applications include astronomical observation of radiation
sources within the Universe, planetary exploration and Earth sciences. Airbus Defence and Space designs and manufactures a wide
range of highly versatile platforms, optical and radar instruments and equipment. For example, Airbus Defence and Space contributed tothe scientific community with the launches of the Sentinel-1B radar, Sentinel-2A and LISA pathfinder. It also signed a major contract todevelop and build the JUICE spacecraft, ESA’s next life-tracker inside the Solar System. JUICE will study Jupiter and its icy moons.
Navigation satellites. Airbus Defence and Space plays a major industrial role in the “Galileo” European navigation satellite system,
which delivers signals enabling users to determine their geographic position with high accuracy and is expected to become increasingly
significant in many sectors of commercial activity. Airbus Defence and Space was responsible for the Galileo in-orbit validation phase(IOV) to test the new satellite navigation system under real mission conditions. The IOV phase covered the construction of the first four
satellites of the constellation and part of the ground infrastructure for Galileo. After the successful launch of the first four Airbus Defence
and Space Galileo IOV satellites in 2011 and 2012, this early constellation was successfully tested in orbit and handed over to thecustomer in 2013. Airbus Defence and Space is playing an active role in the Galileo full operation capability phase (FOC) with a nearly
50% work share, including the FOC ground control segment and providing the payloads for the first 22 FOC satellites through its
subsidiary SSTL.
Satellite products. Airbus Defence and Space offers an extensive portfolio of embedded subsystems and equipment for all types ofspace applications: telecommunications, Earth observation, navigation, scientific missions, manned spaceflight and launchers.
French deterrence systems. ArianeGroup as prime contractor holds the contracts with the French State for the submarine-launcheddeterrence system family.

Communications, Intelligence & Security
Intelligence. Airbus Defence and Space is a provider of commercial satellite imagery, C4ISR systems and related services withunrivalled expertise in satellite imagery acquisition, data processing, fusion, dissemination and intelligence extraction allied to significant
command and control capabilities.
The cluster is a designer and supplier of C4I systems (Command, Control, Communications, Computers and Intelligence), which
provides information systems and solutions to armed forces worldwide to support land, air and sea operations, assuring information
superiority and supporting decision making at all levels of the command chain.
Airbus Defence and Space’s lead systems integration offering includes the ability to design, develop and integrate the widest possible
range of individual platforms and subsystems into a single effective network.
Airbus Defence and Space is also a provider of both optical and radar-based geo-information services to customers includinginternational corporations, governments and authorities around the world.
With the very-high-resolution twin satellites Pleiades 1A and 1B, SPOT 6 and SPOT 7, Airbus Defence and Space’s optical satellite
constellation offers customers a high level of detail across wide areas, a highly reactive image programming service and uniquesurveillance and monitoring capabilities. Spot 6 and 7 provide a wide picture over an area with its 60-km swath, Pleiades 1A and 1B
offer, for the same zone, products with a narrower field of view but with an increased level of detail (50 cm).
Airbus Defence and Space is currently producing four Pléiades Neo, Airbus’ new very high resolution satellites. They will join thealready large Airbus constellation of optical and radar satellites and will offer enhanced performances and the highest reactivity in themarket thanks to direct access to the data relay communication system, known as SpaceDataHighway.
AIRBUS REGISTRATION DOCUMENT 2017 -36

TerraSAR-X, a radar-based Earth observation satellite that provides high-quality topographic information, enabled Airbus Defence
and Space to significantly expand its capabilities by proposing new kinds of images based on radar. TanDEM-X, its almost identicaltwin, was successfully launched in 2010 and achieved in 2014 WorldDEM, the first high precision 3-D elevation model of the entire
surface of the Earth.
Secure Communications. Airbus Defence and Space offers a full portfolio of mobile and fixed satellite communication and secure
terrestrial communications solutions for application at sea, on land and in the air. Airbus Defence and Space provides armed forces andgovernments in the UK, Germany, France and Abu Dhabi with secure satellite communications. For example in the UK, Airbus Defence
and Space delivers in the frame of the “Skynet 5 programme” tailored end-to-end in-theatre and back-to-base communication solutions
for voice, data and video services, ranging from a single voice channel to a complete turnkey system incorporating terminals andnetwork management. This contract, pursuant to which Airbus Defence and Space owns and operates the UK military satellite
communication infrastructure, allows the UK MoD to place orders and to pay for services as required. The service is fully operational
since 2009 and extends to 2022. In Abu Dhabi, Airbus Defence and Space together with Thales Alenia Space built a secure satellite
communication system.
Cyber Security. Airbus Defence and Space has established a cyber security business to meet the growing cyber security needs ofusers of critical IT infrastructure, including governments and global companies. Airbus Defence and Space provides expertise andsolutions to help such organisations to protect themselves against, detect, analyse, prevent and respond to cyber threats. As a leading
provider of Security Operation Centres, incident response services, key management, cryptography and high-security national solutions
and consulting and training services, Airbus Defence and Space has a long track record in providing the most sensitive secure IT anddata handling and training solutions to defence and security customers throughout France, Germany, the UK and other NATO countries.

Security Solutions
Security Solutions include sensor networks ranging from IR and video cameras through radars to airborne and space surveillancesystems, all connected to command and control centres, mainly for border security systems. Apart from Intelligence, Surveillance andReconnaissance (ISR) systems for gathering, aggregation and evaluation of incident data, highly reliable and encrypted digital data andvoice networks are provided. Sophisticated decision-making tools support security forces to prioritise incidents, allocate required
resources and control events in real-time. Services for long-term sustainable operation and life-cost optimisation such as simulation andtraining, maintenance, support to operation, local partnerships are also proposed.

Unmanned Aerial Systems
In the field of Unmanned Aerial Systems (UAS), Airbus Defence and Space is active at both product and service level. Airbus Defence
and Space is the leading UAS Service provider for the German air forces meeting their Medium-Altitude Long-Endurance (MALE)
Intelligence, Surveillance and Reconnaissance needs in the operational theatre. These interim solutions, based on non-proprietary
MALE systems, will be replaced by a new generation European MALE system where Airbus Defence and Space is working on the
Definition Study with its European partners. Airbus Defence and Space also provides mini-UAS to the French armed forces andselected export customers and the KZO UAS to the German armed forces. It is developing the solar-powered Zephyr for the UK MoD,
but also for civil applications such as relay stations for internet provision to remote or sparsely populated regions.
In May 2017, Airbus Aerial was launched. It brings together a variety of aerospace technologies – including drones and satellites –combines them in a software infrastructure, and applies industry specific analytics to deliver tailored solutions to help its customers
efficiently run their business. The portfolio of services will primarily focus on three applications – remote sensing, cargo drone services
and connectivity. The Airbus Aerial activities will span both drone enabled digital services as well as the development of certifiable
drones. Its focus lies on commercial customers in agriculture, insurance, infrastructure, state and local government.

Production
Airbus Defence and Space is headquartered in Munich. The main engineering and production facilities of the Division are located in
France (Paris region and southwest France), Germany (Bavaria, Baden-Württemberg and Bremen), Spain (Madrid region and
Andalusia) and the UK (southern England and Wales). In addition, Airbus Defence and Space operates a global network of engineering
centres and offices in more than 80 countries.

MBDA
The Company’s missile business, in addition to the ArianeGroup joint venture, derives from its 37.5% stake in MBDA (a joint venture
between the Company, BAE Systems and Leonardo). MBDA offers missile systems capabilities that cover the whole range of solutions
for air dominance, ground-based air defence, maritime superiority and battlefield engagement. Beyond its role in European markets,
MBDA has an established presence in export markets like Asia, the Gulf region and Latin America.
The broad product portfolio covers all six principal missile system categories: air-to-air, air-to-surface, surface-to-air, anti-ship, antisubmarine and surface-to-surface. MBDA’s product range also includes a portfolio of airborne countermeasures such as missile warningand decoy systems, airborne combat training and counter-IED and counter-mine solutions. The most significant programmes currently
under development are the ground based air defence system TLVS/MEADS for Germany, the Aster Block 1 NT air and missile defence
family of systems for France and Italy, the Sea Venom/ANL anti-ship missile for the UK and French navies’ helicopters, the portablemedium range battlefield “Missile Moyenne Portée (MMP)”, the network enabled precision surface attack SPEAR missile and the“Common Anti-Air Modular Missile (CAMM)”, which is an anti-air missile family with land, naval and air launched applications.

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ArianeGroup
Airbus Defence and Space is active in the field of launchers and launch services through its ArianeGroup joint venture, which prior to
July 2017 was named Airbus Safran Launchers (ASL).

AIRBUS REGISTRATION DOCUMENT 2017 -38

1.1.5 Investments
Dassault Aviation
Following on from the 2014 and 2015 share sales, the Company sold in 2016 approximately 0.83 million shares in Dassault Aviation,
representing around 9.05% of the company’s share capital at the time. As a result of the implementation of 2016 and 2017 Dassault
Aviation’s share buyback programs and of Dassault Aviation’s capital increase, which took place on 21 June 2017 and at the occasionof which 61,136 shares were issued to remunerate the shareholders who opted for a dividend payment through attribution of shares, theCompany holds approximately 9.93% of Dassault Aviation’s share capital and 6.16% of its voting rights. In case of exchange in full of
the bonds issued by the Company and which are due in 2021, the Company will no longer hold any of Dassault Aviation shares andvoting rights.

1.1.6

Insurance

The Company’s Insurance Risk Management function (“IRM”) is established to proactively and efficiently respond to risks that can betreated by insurance techniques. IRM is responsible for all corporate insurance activities and related protection for the Company and isempowered to deal directly with the insurance and re-insurance markets. A continuous task of IRM in 2017 was to further improve
efficient and appropriate corporate and project-related insurance solutions.
IRM’s mission includes the definition and implementation of the Company’s strategy for insurance risk management to help ensure that
harmonised insurance policies and standards are in place for all insurable risks worldwide for Airbus. A systematic review, monitoring
and reporting procedure applicable to all Divisions is in place to assess the exposure and protection systems applicable to all Airbus
sites. The Company’s insurance programmes cover high risk exposures related to its assets and liabilities.
Asset and liability insurance policies underwritten by IRM for the Company cover risks such as property damage, business interruption,
aviation and non-aviation general and product liability. IRM also provides a group insurance policy for Supervisory and Managing Board
members and certain other employees of Airbus, which is renewed on an annual basis. The Company follows a policy of seeking totransfer the insurable risk of the Company to external insurance markets at reasonable rates, on customised and sufficient terms andlimits as provided by the international insurance markets.
The insurance industry remains unpredictable. There may be future demands to change scope of coverage, premiums and deductible
amounts. Thus, no assurance can be given that the Company will be able to maintain its current levels of coverage nor that theinsurance coverages in place are adequate to cover all signficiant risk exposure of Airbus.

1.1.7

Legal and Arbitration Proceedings

Airbus is involved from time to time in various legal and arbitration proceedings in the ordinary course of its business, the mostsignificant of which are described below. Other than as described below, Airbus 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 theprevious twelve months which may have, or have had in the recent past significant effects on the Company’s or Airbus’ financial
position or profitability.
Regarding Airbus’ provisions policy, Airbus recognises provisions for litigation and claims when (i) it has a present obligation fromlegal actions, governmental investigations, proceedings and other claims resulting from past events that are pending or may beinstituted or asserted in the future against Airbus, (ii) it is probable that an outflow of resources embodying economic benefits will
be required to settle such obligation and (iii) a reliable estimate of the amount of such obligation can be made. Although
Airbus believes that adequate provisions have been made to cover current or contemplated general and specific litigation andregulatory risks, no assurance can be provided that such provisions will be sufficient. For the amount of provisions for litigation andclaims, please refer to the “— Notes to the IFRS Consolidated Financial Statements — Note 22: Provisions, contingent assets andcontingent liabilities”.

WTO
Although Airbus is not a party, Airbus is supporting the European Commission in litigation before the WTO. Following its unilateral
withdrawal from the 1992 EU-US Agreement on Trade in Large Civil Aircraft, the US lodged a request on 6 October 2004 to initiate
proceedings before the WTO. On the same day, the EU launched 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 the extension until the end of 2040 of subsidies
originally granted by the State of Washington to Boeing and other US aerospace firms until 2024.
On 1 June 2011, the WTO adopted the Appellate Body’s final report in the case brought by the US assessing funding to Airbus
Commercial Aircraft from European governments. On 1 December 2011, the EU informed the WTO that it had taken appropriate steps
to bring its measures fully into conformity with its WTO obligations, and to comply with the WTO’s recommendations and rulings.
Because the US did not agree, the matter is now under WTO review pursuant to WTO rules.
AIRBUS REGISTRATION DOCUMENT 2017 -39

On 23 March 2012, the WTO adopted the Appellate Body’s final report in the case brought by the EU assessing funding to Boeing fromthe US. On 23 September 2012, the US informed the WTO that it had taken appropriate steps to bring its measures fully into conformity
with its WTO obligations, and to comply with the WTO’s recommendations and rulings. Because the EU did not agree, the matter is now
under WTO review pursuant to WTO rules.
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 forseveral years.

GPT
Prompted by a whistleblower’s allegations, Airbus conducted internal audits and retained PricewaterhouseCoopers (“PwC”) to conduct
an independent review relating to GPT Special Project Management Ltd. (“GPT”), a subsidiary that Airbus acquired in 2007. The
allegations called into question a service contract entered into by GPT prior to its acquisition by Airbus, relating to activities conductedby GPT in Saudi Arabia. PwC’s report was provided by Airbus to the UK Serious Fraud Office (the “SFO”) in March 2012. In the period
under review and based on the work it undertook, nothing came to PwC’s attention to suggest that improper payments were made by
GPT. In August 2012, the SFO announced that it had opened a formal criminal investigation into the matter. Airbus is in continuingengagement with the authorities.

Eurofighter Austria
In March 2012, the Munich public prosecutor, following a request by the Vienna public prosecutor, launched a criminal investigation into
alleged bribery, tax evasion and breach of trust against 16 individuals, among them former and current employees of EADS
Deutschland GmbH (renamed on 1 July 2014 Airbus Defence and Space GmbH) and Eurofighter Jagdflugzeug GmbH. The
proceedings are related to the sale of Eurofighter aircraft to the Republic of Austria in 2003. After having been informed of theinvestigation in 2012, Airbus retained the law firm Clifford Chance to conduct an independent fact finding review. Upon concluding its
review, Clifford Chance presented its fact finding report to Airbus in December 2013. Airbus provided the report to the Munich publicprosecution. Airbus has been fully cooperating with the authorities. Regarding the question of deductibility of payments made inconnection with the Eurofighter Austria campaign, Airbus Defence and Space GmbH settled with the tax authorities in August 2016.
Since the result of the investigation by the public prosecution did not confirm the allegations of bribery, the Munich public prosecution(Staatsanwaltschaft München I), in order to conclude the investigation in relation to Airbus Defence and Space GmbH (the company),
has issued an administrative penalty notice against the company under the German Act on Administrative Misdemeanours(“Ordnungswidrigkeitengesetz”). The notice is based on the allegation of a negligent breach of supervisory duties of non-identified
members of the company’s former management. The notice alleges that former management negligently failed to ensure proper internal
controls that would have prevented employees from making payments to business partners without proven documented services. The
monetary penalty amounts to € 81.25 million (comprising an administrative fine of € 250,000 and € 81 million of disgorged profits). The
notice explicitly acknowledges the efforts of Airbus and its management to successfully install a completely overhauled compliancesystem starting in 2012. The company, supported by its direct group shareholders and ultimately Airbus SE, has waived any remedy
against the notice.
In February 2017, the Austrian Federal Ministry of Defence raised criminal allegations against Airbus Defence and Space GmbH andEurofighter Jagdflugzeug GmbH for wilful deception and fraud in the context of the sale of the Eurofighter aircraft to Austria andrespective damage claims. After the Austrian Federal Ministry of Defence raised its criminal allegations, the Austrian public prosecutor
opened an investigation against Airbus Defence and Space GmbH, Eurofighter Jagdflugzeug GmbH and former and current employeesof the two entities. On 18 September 2017, Airbus filed a submission to the Vienna Public Prosecutor in response to the allegations ofdeception in the procurement of Eurofighter combat aircraft made by the Austrian Defence Minister. Airbus is cooperating fully with theauthorities.

Investigation by the UK SFO and France’s PNF
In the context of review and enhancement of its internal compliance improvement programme, Airbus discovered misstatements andomissions relating to information provided in respect of third party consultants in certain applications for export credit financing for Airbus
customers. In early 2016, Airbus informed the UK, German and French Export Credit Agencies (“ECAs”) of the irregularities it had
discovered. Airbus made a similar disclosure to the UK Serious Fraud Office (“SFO”). In August 2016, the SFO informed Airbus that it
had opened an investigation into allegations of fraud, bribery and corruption in the civil aviation business of Airbus relating toirregularities concerning third party consultants (business partners). In March 2017, France’s Parquet National Financier (“PNF”)
informed Airbus that it had also opened a preliminary investigation into the same subject and that the two authorities would act incoordination going forward. Airbus is cooperating fully with both authorities including in respect of potential issues across Airbus'
business. As part of Airbus' engagement with the US authorities, the latter have requested information relating to conduct forming part of
the SFO/PNF investigation that could fall within US jurisdiction. Airbus is cooperating with the US authorities in close coordination with
the SFO and PNF. The SFO and PNF investigations and any penalties potentially levied as a result could have negative consequences
for Airbus. The potential imposition of any monetary penalty (and the amount thereof) or other sanction including tax liability arising fromthe SFO and PNF investigations will depend on the ultimate factual and legal findings of the investigation, and could have a material
impact on the financial statements, business and operations of Airbus. However, at this stage it is too early to determine the likelihood or
extent of any such possible consequence. Investigations of this nature could also result in (i) civil claims or claims by shareholders
against Airbus (ii) adverse consequences on Airbus’ ability to obtain or continue financing for current or future projects (iii) limitations on
the eligibility of group companies for certain public sector contracts and/or (iv) damage to Airbus’ business or reputation via negative
publicity adversely affecting Airbus’ prospects in the commercial market place.

ECA financing
The financing environment remains healthy. A high level of liquidity is available in the market at good rates for our attractive portfolio of
products. In 2017 ECA financing had not been made available to Airbus but Airbus and the ECAs have now reached agreement on a
AIRBUS REGISTRATION DOCUMENT 2017 -40

process under which we are able to resume making applications for ECA-backed financing for our customers across the group on acase-by-case basis. We anticipate a return to ECA cover in 2018 for a limited number of transactions while the level of appetite forcommercial financing remains high.

Other investigations
In 2014, the Munich public prosecutor investigated potential irregularities in relation to a project of Tesat-Spacecom GmbH & Co. KG ”).
The Munich public prosecutor launched administrative proceedings in the context of this investigation against Tesat-Spacecom GmbH &Co. KG. In January 2018 the public prosecutor terminated the investigation against individuals as well as the administrative fineprocedure relating to Tesat-Spacecom GmbH & Co. KG.
In April 2017, the Munich public prosecutor terminated administrative proceedings against former EADS Deutschland GmbH (nowAirbus Defence and Space GmbH) with regard to border security projects in Romania and Saudi Arabia. Already in 2016, corresponding
investigations against former and current employees of the EADS group were terminated.
Airbus is cooperating with a judicial investigation in France related to Kazakhstan. Airbus is not a party to these proceedings. Airbus iscooperating with French judicial authorities pursuant to a request for mutual legal assistance made by the government of Tunisia in
connection with historical aircraft sales.
Following a review of its US regulatory compliance procedures, Airbus has discovered and subsequently informed relevant US
authorities of its findings concerning certain inaccuracies in filings made with the US Department of State pursuant to Part 130 of the US
International Traffic in Arms Regulations (ITAR) (a US export control regulation). Airbus is cooperating with the US authorities. Airbus isunable to reasonably estimate the time it may take to resolve the matter or the amount or range of potential loss, penalty or othergovernment action, if any, that may be incurred in connection with this matter.

Review of business partner relationships
In light of regulatory investigations and commercial disputes, including those discussed above, Airbus has determined to enhancecertain of its policies, procedures and practices, including ethics and compliance and export control. Airbus is accordingly in the processof revising and implementing improved procedures, including those with respect to its engagement of consultants and other third parties,
in particular in respect of sales support activities and is conducting enhanced due diligence as a pre-condition for future or continued
engagement and to inform decisions on corresponding payments. Airbus engaged legal, investigative, and forensic accounting expertiseof the highest calibre to undertake a comprehensive review of all relevant third party business consultant relationships and related
subject matters. Airbus believes that these enhancements to its controls and practices will best position it for the future, particularly inlight of advancements in regulatory standards. Several consultants and other third parties have initiated commercial litigation andarbitration against Airbus seeking relief. The comprehensive review and these enhancements of its controls and practices has led toadditional commercial litigation and arbitration against Airbus and may lead to other civil law or criminal law consequences in the future,
which could have a material impact on the financial statements, however at this stage it is too early to determine the likelihood or extent
of any liability.

Commercial disputes
In May 2013, Airbus was notified of a commercial dispute following the decision taken by Airbus to cease a partnership for sales support
activities in some local markets abroad. Airbus 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 proceedings cannot be fully assessed at this stage. The
arbitration will not be completed until 2018 at the earliest.
In the course of another commercial dispute, Airbus received a statement of claim by the Republic of China (Taiwan) alleging liability forrefunding part of the purchase price of a large contract for the supply of missiles by subsidiary Matra Défense S.A.S., which thecustomer claims it was not obliged to pay. An arbitral award was rendered on 12 January 2018 with a principal amount of € 104 million
plus interest and costs against Matra Défense S.A.S. Airbus is studying the award and considering the next steps.

1.1.8

Non-Financial Information

1.1.8.1 Airbus’ Approach to Responsibility & Sustainability
Airbus and its main stakeholders
Airbus is an industrial company operating in businesses with long product lifecycles and corresponding returns on investment. There are
significant costs and risks in programme development and cyclical civilian markets. These features define the Company and shape its
relationships with all stakeholders. For a description of Airbus’ business model, see “— 1.1.1 Overview.
Airbus is engaged in stakeholder dialogue at various levels of the Company. Cooperation being at the heart of Airbus since its inception,
the Company strongly encourages exchanging on best practices, understanding different perspectives and improving its performance inevery activity. The responsibility for stakeholder engagement is decentralised at Airbus and employees are encouraged to initiate,
develop and maintain relationships with their respective stakeholders. Airbus often seeks a sectorial approach in order to strengthen theimpact.

AIRBUS REGISTRATION DOCUMENT 2017 -41

The Company’s main purpose, its missions and the objectives resulting from them, are defined in relation to these stakeholders. The
Company has defined the following objectives:•

Generate long-term value by developing a sustainably profitable portfolio of aeronautics, helicopter, defence and spacebusinesses. For its shareholders, lenders and other financial counterparts, the Company must meet its obligations andfoster its standing of creditworthiness and profitability.

•

Be a provider of choice, offering superior value-for-money products and services to customers.

•

Engage employees to share its goals and rise to its challenges. Within the confines of applicable laws and regulations,Airbus must respond to their expectations about development, people management and values.

•

Build sustainable relationships with its suppliers based on mutual interest to satisfy its customers to encourage
responsible practices. The Company promotes the Supplier Code of Conduct as standards consistent with its own codeof conduct, and also develops and implements adequate mechanisms to monitor supplier performance.

•

Play a key role in society and towards local communities. The Company is committed to responsible business practices
in terms of respect for human rights, labour, the environment and anti-corruption. In addition, the Company encourages
initiatives that contribute to tackling societal challenges whether through its products and services, skills and resources or
via key partnerships.

Materiality Assessment
In order to prioritise its responsible and sustainable efforts, Airbus has performed a materiality assessment in 2017. With the support ofconsultants, Airbus approached a set of stakeholders representing customers, works councils, local community partners, NGOs,
technological partners, investors, airworthiness authorities, MROs, government bodies, suppliers and industry associations. Airbus
chose a qualitative approach rather than a quantitative approach. In-depth interviews were conducted with external stakeholders. A listof top issues for the Company was developed, consolidated and ranked by the Company’s Responsibility & Sustainability Network. The
network gathers a group of experts advising on Airbus’ Responsibility & Sustainability (“R&S”) strategy, monitoring progress in theirrespective areas of responsibility, sharing knowledge and best practices throughout the entire Company. It is trans-functional, transnational and trans-divisional and meets on a regular basis. The outcome of this assessment was shared with top management.

UN Sustainable Development Goals
Airbus is committed to the UN Global Compact principles and has reached the “Advanced Level”.
Airbus adopted the UN Sustainable Development Goals (SDGs) in December 2015 as a framework to align its responsible andsustainable contributions. Over 2016, Airbus performed a mapping of its contributions based on the Company’s publicly available
information (including the Company’s web site, annual report and press releases). It demonstrated that at least eight of the 17 SDG
goals are directly relevant to Airbus’ businesses and stakeholders’ feedback confirmed that Airbus is actively contributing to:
•
•
•
•
•
•
•

SDG 4: Quality education
SDG 5: Gender equality
SDG 8: Decent work and economic growth
SDG 9: Industry, innovation and infrastructure
SDG 12: Responsible consumption and production
SDG 13: Climate action
SDG 16: Peace, justice and strong institutions
AIRBUS REGISTRATION DOCUMENT 2017 -42•SDG 17: Partnerships for the goals

Throughout 2017, Airbus continued the mapping internally and identified KPIs to assess its overall contributions to the above SDGs.
Measurement will start in 2018.
Responsibility & Sustainability Charter
In 2017, Airbus has outlined its commitments in a new R&S Charter. The aim of the Charter is to demonstrate how Airbus intends tocontribute to the requirements and needs of society and how employees will live Airbus’ six values in their daily work with all
stakeholders whether customers, suppliers, partners, shareholders. The Charter is available at www.airbus.com.
Airbus’ Way Forward: Vigilance Plan
Airbus is determined to conduct its business responsibly and with integrity. The Company is convinced that promoting responsible
business conduct within our value chain is key to sustainable growth.
As far as its own operations are concerned, Airbus has adopted internal policies and management tools to perform the assessment,
monitoring, mitigation, reporting of risk and compliance allegations. They are fully embedded into the Company’s culture and processes.
At Airbus, heads of programmes and functions, supported by their respective specialists, shall ensure proper deployment of theCompany’s policies, management of Enterprise Risk Management (ERM) in their fields as well as duly reporting issues to top
management. Airbus’ approach is thus based on its existing strengths:
1) strong management process already established and adopted by employees;2) empowerment of specialists;
3) industry approach whenever possible.
In 2017, Airbus established a working group composed of specialists representing supplier management, health and safety,
environmental affairs, labour rights, ethics and compliance, corporate governance as well as risk managers and representatives fromthe Company’s two Divisions. One of the tasks of the working group was to perform a risk assessment and define concrete actions inorder to ensure continuous monitoring of the entire Company and to mitigate principal risks or prevent serious violations. Airbus is also
working to ensure that internal processes will be adjusted in order to ensure the efficiency of all measures.
With regard to risk management, Airbus performed an in-depth review of its ERM system in order to identify potential missing risks
related to human rights and fundamental freedoms, health and safety and the environment. The ERM system was updated to take into
account the most significant potential risks related to these areas that Airbus may generate as part of its operations. The ERM team also
adjusted its procedures so that these potential new risks and their likely adverse impacts can be duly assessed throughout theCompany. For each risk, a dedicated action plan is being defined by the responsible team who will monitor its deployment throughout
the Company. The potential new risks and related action plans will be consolidated and reported to the top management of theCompany. For a complete description of Airbus’ ERM system, see “— Corporate Governance — 4.1.3 Enterprise Risk Management
System”..
To support our commitment to and promotion of a speak-up culture, Airbus created the OpenLine to provide the Company's employeeswith an avenue for raising concerns in a confidential way. Subject to regulatory approval, Airbus intends for employees to be able toraise their concerns, if any, about violations of human rights and fundamental freedoms, health and safety and environmental policies.
Airbus is also reinforcing its training for employees related to human rights as well as other topics related to responsibility andsustainability. Airbus currently proposes over 80 e-learning courses on labour relations, diversity, environmental and health and safety
matters to its employees. In addition, the Company also provides training to its employees on the Airbus Standards of BusinessConduct. Finally, a R&S learning programme targeting employees to be trained on new regulations and supporting cultural change will
be developed and launched in 2018.
All Airbus affiliates (affiliates where Airbus owns more than one half of the voting rights, or is able to appoint or discharge more than one
half of the members of the board) with operational activities are expected to deploy similar internal policies applying Airbus directives.
Currently, Airbus and its Divisions have different governance directives for the affiliates in their respective scopes with the aim to have asingle governance directive in 2018. The objective of the corporate governance directives for Airbus' affiliates is to define rules,
processes and procedures applicable to Airbus affiliates and their respective boards, directors and officers. The document is used toassist Airbus affiliates in effectively fulfilling their responsibilities while assuring Airbus’ on-going commitment to high standards ofcorporate governance.
Each affiliate with operational activities has in place a board of directors and/or a shareholders’ meeting where the strategic decisions
are made. Each affiliate has an Airbus supervisor who is a member or chairman of the board who ensures that all Airbus requirements
are considered by the affiliate’s management. The board will consider the affiliate’s accounts, the operating and development plans, thecompany performance versus the allocated targets, human resources topics and ERM. At least once a year the agenda of the board will
include an update on ethics and compliance matters (including training, awareness and any other relevant issues).
In order to ensure proper and systematic cascading of CSR-related policies throughout the Company, Airbus’ head of Subsidiaries andAffiliates has joined the R&S Network while, in return, each impacted function has appointed an official point of contact that can support
affiliates in the implementation of these policies.
In 2018, Airbus will update its directive on CSR-related policies requirements applicable to its affiliates. Airbus will communicate thenecessity to ensure deployment and monitoring of the following policies described in this chapter:
•
•
•
•
•
•

International Framework Agreement
Agreement on the European Works Council
Supplier Code of Conduct
Health & Safety Policy
Standard of Business Conduct
Environmental Policy
AIRBUS REGISTRATION DOCUMENT 2017 -43•Airbus Anti-corruption Policy and Directives

Affiliates will be asked to evaluate the newly identified potential risks via the Airbus ERM system as well as to regularly monitor them aspart of their risk assessment process. Airbus will ensure that the procedures to assess, investigate and manage allegations are wellaligned throughout the Company. In addition, a self-assessment of affiliates regarding social, human rights, and environmental matterswill be organised, starting in 2018.
For its principal joint ventures, Airbus will ensure the proper application of its policies or those of its partner.
The overall plan will be shared with employees throughout the year.
A dedicated programme has been launched by the Procurement function in order to monitor Airbus’ suppliers and develop processes to
identify potential serious harm to human rights, fundamental freedom, health and safety and the environment with the aim of preventing
them. For more information, see the dedicated chapter on the supply chain, including the vigilance plan for suppliers, under chapter
1.1.8.4 (b) Responsible Suppliers.

1.1.8.2 Responsible Manufacturera. Product Safety
Airbus recognises and values the trust the flying public puts in its aircraft, and this is the reason the Company constantly strives toimprove safety any way it can. Its investment in successive generations of aircraft which embody new and safer technologies have beenvery successful in achieving an ever-decreasing number of accidents despite an ever-increasing number of flights.
Today, with the rate of accidents at an all-time low, Airbus is working even harder to ensure that accidents remain rare events.
This is why it is Airbus’ top priority to continually improve safety. Its commitment to safety starts at the top, is reflected in the structure of
its organisation, and is most deeply embodied in the mind-set employees bring to work.
At every point in design, manufacturing and assembly, Airbus makes sure that its aircraft not only comply with but exceed the safety
requirements laid down by the European Aviation Safety Authority (EASA) and the US Federal Aviation Authority (FAA). The
development of the Fly-By-Wire and flight envelope protection technologies more than 25 years ago, or more recently the Runway
Overrun Prevention System, are examples of significant contributions to safety introduced by Airbus and now becoming industry
standards.
Whenever safety topics must be discussed, it is done at the appropriate level, including by Airbus’ senior executives. By acting together,
the Company ensures that the full power of coordinated cross-company action can be brought to bear on any issue where it is believedthat safety can be further enhanced.
The Product Safety Process (PSP) is Airbus’ primary means of responding to what is happening with the 10,000 Airbus aircraft flying
today, and of maintaining continued airworthiness. It enables Airbus to analyse reports from the field and other in-service events, andfrequently leads to the introduction of safety enhancements either to new products under development or to existing designs. In thisway, Airbus is actively enhancing the safety level for its products and helping to advance the safety level for the whole industry.
The PSP is now evolving to be part of Airbus’ Safety Management System (SMS), formalising Airbus’ evolution to a risk management
approach to safety. Both the PSP and the SMS rely on a network of safety representatives within each Division of the Company. All
Airbus employees, including those in the safety network, are trained to recognise that the lives of passengers and airline personnel candepend on their personal commitment to safety, and to ensure that they are aware of how their personal actions can improve safety.
Airbus and its employees at all levels therefore work hard to ensure safety in:
•
•
•
•
•

The design of aircraft to higher levels than those required by EASA/FAA Part 25 regulations;
The quality of manufacturing in line with its EN 9001 certification;
The materials/manuals supplied to customers to operate and maintain the aircraft;
The training provided to flight crews, cabin crews and maintenance crews;
The worldwide services delivered in support of the aircraft’s operation.

Yet what makes a flight safe is a combination of a safe aircraft, safe airline operations and a safe air transport system. Therefore, even if
the primary responsibility of Airbus as a manufacturer is the aircraft, the scope of safety at Airbus reaches beyond the product and also
includes an active role at the air transport system level.
Airbus is in constant contact with other aircraft manufacturers, airlines and air safety organisations around the world to find new ways of
improving safety standards. The Company believes that industry wide cooperation is crucial to making further safety enhancements.
Airbus has put in place a harmonised approach to product safety throughout the Company. Similar processes and tools to thosedescribed above for Airbus commercial aviation are in place at Airbus’ Divisions, Defence and Space and Helicopters. These include a
dedicated Product Safety function, which is empowered to take action across the business to ensure the safety of all operations, daily
monitoring and management of safety topics and deployment of a SMS as well as related specific organisation approvals by competentorganisations. However, the implementation of these harmonised processes was adjusted to the specificities of their activities and of theregulatory requirements. For example, there is no regulation to manage companies and official organisations’ participation in safety
investigation for the military world. In addition, due to the nature of military activities, investigation are often classified as confidential or
restricted for officials.

b. Research & Technology

AIRBUS REGISTRATION DOCUMENT 2017 -44

In 2017, CTO underwent a transformation programme to become more agile, innovative and aligned with the needs of Airbus. The neworganisation applies a lean, project-based approach, will encourage collaboration with external research communities and develop
partnerships, especially through open innovation with technical and scientific experts.
The CTO organisation is responsible for: guiding all R&T activities of the Company and ensuring Airbus-wide integration of technology
through Technology Planning and Roadmapping, accelerating the development of selected technologies through Flight Demonstrators
together with the Divisions, providing expertise in breakthrough technologies in support of the group wide projects in Central R&T anddeveloping technologies for the next generation aircraft in Airbus R&T.
Technology Planning and Roadmapping developed a set of technology roadmaps spanning the R&T portfolio, which are used toanalyse technology progression using key figures of merit and is starting to provide a valuation methodology for the R&T activities.
Flight Demonstrators provide a maturation mechanism and maturity gates for the group R&T portfolio. The Demonstrators employ a
CTO-established development methodology, including phasing and key gates, lightweight project management and earned-value
management processes, including budgeting, HR and contracting mechanisms tailored for speed of execution.
Central R&T is organised in five boost areas - Data Science, Materials, Communication Technologies, Electrics Expertise and Virtual
Product Engineering. A research vision and new ways of working were implemented with a short cycle for testing new ideas anddecision gates for the creation of larger projects. The transitioning from the former Airbus Group Innovations is ongoing through 2018.
Airbus R&T portfolio will be organised in three areas starting in 2018 to better adapt to Airbus product policy and business needs Enhancing our Aircraft Programmes, Next New Aircraft, and Digital Design & Manufacturing. The organisation started a transformation
program aiming for speed, agility and high performance with a flatter hierarchy and empowered teams.
In addition to the domains described above, five technology thrusts were established to ensure coherency in the portfolio of activities
and to rapidly advance strategic priorities. These thrusts are:
•
•
•
•
•

Electrification;
Digital Design and Manufacturing;
Connectivity;
Autonomy;
Materials.

Key progress in 2017
Flight Demonstrators•

E-Fan X Programme:

The E-Fan family of technology demonstrators was a bold step towards all-electric and hybrid-electric flight aimed at establishingrequirements for future certification of electrically powered airplanes and at training a new generation of designers and engineers for thechallenges of electric flying. In March 2017, the Airbus Executive Technical Council decided to refocus Airbus’ efforts on electric flighttowards a more ambitious project, which aims to develop a hybrid-electric demonstrator baptised the "E-Fan X", a stepping stone
towards a hybrid electric single aisle aircraft. In November 2017, E-Fan X was launched in conjunction with Siemens and Rolls-Royce.
E-Fan X will be powered by a 2 MW motor, which is one order of magnitude greater than E-Fan 2.0’s motor.
•
E-Aircraft Systems House (EAS):
The EAS aims to verify hybrid- and electric propulsion systems functionality and performance for low, medium, and high-powersystems by ground testing, accelerating technology readiness in collaboration with Siemens and developing and supplying hybridelectric propulsion systems and hardware for Flight Demonstrators.
In 2017, it continues to support electrification projects, including providing the test bench for CityAirbus.
A3
A³ (pronounced “A-cubed”), is the advanced projects and partnerships outpost of Airbus in Silicon Valley with the mission to disrupt theaerospace industry.
•

•
•
•
•

Altiscope launched in 2017 to help integrate unmanned aircraft systems (UAS) into the airspace. Using a simulator toevaluate policy options and operational models for air traffic management systems, it aims to service all forms of airborne
traffic.
Vahana is an electric urban air mobility vehicle designed to carry a single passenger or cargo. A³ is aiming to make it the firstcertified passenger aircraft without a pilot. The first Vahana full-size prototype is scheduled to fly in early 2018.
Transpose, launched in December 2016, rethinks the aircraft cabin architecture and passenger experience possibilities. The
project demonstrated user tests in a modular cabin in its alpha phase.
Voom delivers an on-demand urban air mobility service using helicopters. It successfully completed its beta phase pilot in Sao
Paulo, Brazil, and will continue as a business in 2018 within Airbus Helicopters.
Airbus China Innovation Centre (ACIC): This year, a second innovation centre was opened in Shenzhen, China. Like A3, it
is focused on technologies and business models that could be disruptive to the core business. However, it will leverage thehardware ecosystem in Shenzhen, and talent pool in China to develop projects. The first ACIC project will be launched in
2018.

BizLab
Airbus BizLab is the aerospace accelerator where startups and Airbus intrapreneurs speed up the transformation of innovative ideas
into valuable businesses. BizLab offers early-stage selected projects wide-ranging support in the form of a program with a six-monthacceleration phase. Startups and internal projects benefit from free hosting in BizLab facilities, have access to a large number of Airbus
coaches and experts in various domains, and participate in events such as a Demo Day with Airbus decision makers, Airbus customers
and partners. The BizLab expanded its network by opening a fourth campus, in Madrid, in January 2018.

AIRBUS REGISTRATION DOCUMENT 2017 -45

Airbus Helicopters
CityAirbus is a three-to-four passenger optionally piloted electric vehicle for unmanned air mobility. It has transitioned into Airbus
Helicopters from the ExO and expects an unmanned flight test in 2018. The urban last mile delivery solution, Skyways, plans ademonstration in February 2018, after which it will be transitioned into Airbus Defence and Space.
Airbus Defence and Space
Airbus Aerial is an image and data analytics services company that was launched in 2017. It integrates data from a broad array of
aerospace assets including satellites and unmanned aerial vehicles. At the end of 2017, it employed 22 people.

c. Environmental Matters
The industry faces a variety of environmental challenges, including climate change, and Airbus invests and cooperates withstakeholders across the value-chain in researching and implementing innovative ways to meet them.
As aviation represents around 2% of global man-made CO2 emissions, Airbus recognises its role in reducing the global environmental
footprint of the sector and the importance of staying in line with the global 2°C trajectory. This is done through continually seeking to
reduce the carbon intensity of Airbus’ industrial operations and working together with Airbus’ suppliers, industry and government
stakeholders in its aim to find sustainable solutions to reduce the environmental impact of its products, deliver its ambitious sectorial
emission reduction goals, as well as preparing adaptation to the effects of climate change on its operations.
One of these challenges is the elimination of substances from its products and processes that may pose a risk to human health or theenvironment, which will be addressed later in this section.

1.

Environmental Management at Airbus“Shaping our future” means that Airbus develops products and services taking into consideration current and foreseeable futureenvironmental challenges for future generations and with long-term value creation in mind. Incorporating environmental values into its
core policy not only improves the management of operational business risks and opportunities but also enhances the long-termsustainability of its business.
Alongside the Company’s environmental policy in pursuit of eco-efficiency, Airbus has developed an aspirational long-term
ambition for 2050 setting the direction for the Company regarding environmental matters, providing a framework to set up concrete
environmental objectives for the short- and mid-term.
The Company’s 2050 Ambition covers the three following complementary directions:•operating Airbus sites without impact on climate change by eliminating greenhouse gas emissions, with zero air andwater emissions, zero waste to landfill and minimal natural resources consumption;•delivering products which provide maximised value to customers whilst meeting expectations of society throughminimised impact on climate, air emissions and noise, management of substances of concern aiming at their elimination andmaximised reliability, throughout the product lifecycle;•

engaging the supply chain in the Company’s ambitious objectives.

In 2015, an Environment Steering Committee was created to manage all matters related to the environment. The Steering Committee
meets four times a year and is composed of the heads of Environment for Airbus Commercial Aircraft, Helicopters and Defence andSpace, as well as a representative from the R&S department. Its role is to develop and define the environmental policy and associatedobjectives and agree on a common approach for the management of the environment throughout the Company.
Airbus has put in place a robust Environmental Management System (EMS) centrally and within its Divisions. One of the functions of
the Airbus EMS is to track the enhancement of its environmental performance as it includes identifying, managing, monitoring andcontrolling an organisation’s environmental issues. Airbus’ EMS is guided by the latest version of the international environmental
standard, ISO 14001: 2015 version. The 2015 version has a broader scope than previous standards, and Airbus was among the firstaerospace companies to adopt it.
Environmental risks and opportunities are managed following the Company’s ERM process. Risks and Opportunities are reported
quarterly to the Executive Committee of each Division and top risks are consolidated at Company level to be brought to the attention of
Airbus’ top management.
On an annual basis, Airbus undertakes an extensive exercise to collect, consolidate and report the Company’s environmental
performance data. Quantitative data is gathered - energy and water consumption, CO2 and VOC emissions and waste generation - aswell as qualitative data - certification, incidents, activities on site. This enables Airbus to measure its environmental impact, follow its
performance and communicate information on environmental matters to internal and external stakeholders. The Company’scommitment to eco-efficiency is demonstrated through its transparent reporting.
In the future, the reporting of environmental indicators will include relevant categories of Scope 3 emissions for Airbus’ operations. This
will provide greater understanding of the impact on the environment of activities under Airbus’ control.
Working in cooperation
Airbus understands the importance of working together with other stakeholders to find solutions.
Engagement within the International Aerospace Environmental Group (IAEG). Airbus is a Founding Member of IAEG and participates indifferent areas of IAEG, such as greenhouse gas emissions, substances management, substitution technologies and supply chain to

AIRBUS REGISTRATION DOCUMENT 2017 -46

share practises and promote development of global standards for implementation of environmental requirements in the aerospaceindustry.
Airbus is an active board member of the Air Transport Action Group (ATAG) which sets goals and mobilises action on strategic aviation
issues such as climate change through involvement throughout the industry (i.e. with other manufacturers, airlines, airports, air traffic
management).
Aviation is a global industry and requires global solutions. ICAO, a specialised agency of the UN, has a proven track record of deliveringrobust aviation environmental standards and guidance (i.e. air quality, noise, CO2). Airbus has shown a long-term commitment tosupport the need for global civil aviation governance, with ICAO as its corner-stone, working together with stakeholders across theaviation industry and with the relevant governmental agencies.
Airbus, with the rest of the aviation industry, has supported the ICAO agreements in 2016 on the CO2 standard and Carbon Offsetting &Reduction Scheme for Aviation (CORSIA), the new international carbon offsetting scheme for aviation.
Airbus continues to proactively support emissions and noise reduction once its aircraft go into service. This could be through fuelefficiency services, weight saving projects, retrofits (i.e. sharklets) and ground operations (i.e. eTaxi). In 2015, Airbus launched theSustainable Aviation Engagement Programme, establishing long-term cooperations with various Airbus operators to offer ways toreduce their environmental footprint.
Clean Sky was at the time of its launch the largest European research programme funded by the EU, developing innovative, cuttingedge technology aimed at reducing CO2, gas emissions and noise levels produced by aircraft. As part of this programme, Airbus
developed the Bluecopter concept, which demonstrates a number of fuel saving and noise reduction technologies. It is already thequietest helicopter worldwide in its category, and also the first to reach the noise category A+. The demonstrator underwent a stringent
flight test campaign until April 2017 in order to validate the effectiveness of the technologies developed in the frame of the CleanSky
program.
In September 2017, the Company used a modified A340 aircraft to test the laminar flow concept developed by Clean Sky. The BLADE
project aims to reduce wing friction by 50% and reduce CO2 emissions by up to 5%.

2.

Environmental Concerns

Regulated substances across its products’ lifecycles
Aerospace manufacturing, operations and maintenance rely on certain regulated substances to achieve a high level of quality, safety
and reliability accounting for lengthy product lifecycles. Some of these substances are or may in the future be classified as substancesthat may pose a risk to human health or the environment. These type of risks depend on many factors such as the category ofclassification, but also the operational use of these substances under applicable laws/regulations laying down occupational exposure
limits, and the lifecycle stage of the products.
If a substance not yet identified is classified in the future as one that may pose a risk to human health or the environment, this may giverise to substantial costs for Airbus to manage it, including, for example, research and development (whether alone or in cooperation withother stakeholders) of suitable alternatives, testing, qualification and certification costs. Any reputational risk and potential claim against
Airbus that may result will also need to be managed.
Airbus continues in its activity (also in cooperation with industry stakeholders) to identify new technologies and solutions that avoid useof substances classified as posing a risk to human health or the environment, whilst satisfying airworthiness, certification andperformance requirements. Airbus also engages with suppliers to promote the adoption of a similar approach through regularcommunication and, more widely, by working together with the aerospace industry to promote worldwide harmonisation of regulations
and ways of working, taking into account the sector’s safety and lifecycle specificities.
Airbus identifies, tracks and declares regulated substances. The Company has already substituted certain substances of concern ordeveloped replacement technology where suitable alternatives have been found, such as some ozone-depleting substances (ODS),
fluorinated gases, or substances of very high concern (SVHCs) under the European regulation REACH. On top of all applicableregulatory requirements, more than 100 substances have been targeted by Airbus for substitution and the Company is always looking
for new solutions. For example, Airbus Commercial Aircraft launched the Airbus chromate free project in 2006. The project has so far
delivered substitution solutions for a considerable number of usages and continues efforts to substitute the remaining ones. One of thefirst steps was to deploy chromate-free surface protection systems, with among others, operational changes and replacement within
Airbus’ production lines. Over 100 suppliers are now ‘qualified’ to use chromate-free pickling before anodisation.
Within IAEG, Airbus contributed to the creation of the IAEG ‘Aerospace and Defence Declarable Substances List’ (AD-DSL) and theassociated declaration standard (IPC-1754). The AD-DSL provides an initial common list of chemicals/substances identified andreviewed by IAEG as used within the aerospace and defence supply chain and thus will make it easier to work with regulatory agencies
to appropriately manage regulated substances and chemicals used in manufacturing.
Surface modification by laser is a new technology developed by Defence and Space to replace the use of substances for someprocesses, notably for pre-treatment before bonding. This technology is now available for some Space Systems applications and isplanned to be implemented into the serial production of flight hardware for New Generation Synthetic Aperture Radar satellites(NGSAR).
Environmental impact of Airbus operations
Airbus is engaged in an industrial transformation to anticipate and prepare itself for mid-term evolutions of its industrial systems as wellas the longer term solutions to build its “factories of the future”. This Company-wide initiative will support the reduction of Airbus’
environmental footprint on air, soil and water quality, climate change, biodiversity and resource availability. An evaluation of hotspots ison-going to help focus on appropriate topics.

AIRBUS REGISTRATION DOCUMENT 2017 -47

Analysis of the current trends shows that the regulatory pressure on the international scene to reduce the environmental footprint of theaerospace industry is steadily growing (circular economy and resources efficiency, energy transition and climate change engagement,
air and water quality improvement). In addition, the expectations of stakeholders (including citizens, investors) are also elements that
increase pressure towards low carbon and sustainable production patterns. Since 2015, Airbus has been developing its plan for the next
decade to prepare for upcoming regulatory developments, maintaining employee engagement and proposing solutions to stakeholders’expectations.
Airbus has committed and continues to commit to setting up ambitious short-, mid- and long-term environmental targets. In 2006, Airbus
set up the environmental vision for 2020 with goals for reduction of energy consumption, CO2 emissions, water consumption, VOC
emissions and waste production. To fulfil its commitments, Airbus developed innovative projects, continuous improvement mind-set andpractices sharing and participates in projects with other stakeholders.
Airbus has also set an extended 2030 Vision, with operational objectives on Airbus manufacturing activities but also encompassing
suppliers. Airbus wants to engage in ambitious environmental objectives in its aim to:•

Enhance the use of environmental risk evaluation for consideration as a quantitative input during supplier selection,
contracting and auditing phases;•

Divert waste from landfilling and incineration;•

Comply with air emissions regulations and absorb ramp up production impacts;•

Comply with GHG emissions regulations (and compatible with the global 2°C trajectory) and absorb ramp up productionenergy impacts;•

Develop strong maintenance and rehabilitation programs to improve reliability and lower water costs.

To highlight the importance of CO2 impact in design and operation of plants, an initiative is being developed to set an internal “Carbon
Price” to be used in the trade-off between different solutions. This may be used for industrial projects and 2030 Vision would integrate a
progressive increase in the Carbon Price as a further carbon-reduction incentive and to bring greater appreciation of the CO2 impact in
the near future.
Airbus monitors and makes available data verified by external auditors, and publishes transparently its industrial performance. The
performance linked to 2020 Vision results shows good progress (by reference to a baseline of 2006 at constant revenue and production)in different areas: energy consumption (stationary sources) has decreased by 37%, CO2 emissions by 42% (scope 1 stationary sources+ scope 2 total), while water consumption has been cut by 48% and waste by 41%.
Environmental data has been externally audited since 2010. Below is a selection of externally reviewed environmental indicators. The
current reporting covers Scope 1 and Scope 2 emissions.
GRI

KPI

Unit

2016

2017

EN3

Total energy consumption (excluded electricity generated byMWh

3 893 111

4 098 475

MWh

1 395 192

1 357 724

MWh

1 335 263

1 298 639

distillate fuel oil consumption (Gas oil, Diesel,

MWh

12 17013 782liquefied petroleum gas consumption

MWh

360

357

propane consumption

MWh

3 883

1 356

biomass consumptionMWh

43 51743 117

Energy consumption from mobile sources

MWh

1 045 159

1 206 689

MWh

2 769

2 749

distillate fuel oil consumption (Gas oil, Diesel,

MWh

27 16626 020liquefied petroleum gas consumption

MWh

118

5

propane consumption

MWh

1 700

1 736

jet fuel aircraft / kerosene consumption

MWh

1 010 647

1 172 453

Environmental
performance
ENERGYCHP on site for own use)
Energy consumption from stationary sourcesof which, natural gas consumption

FOD)

of which, gasoline consumption

FOD)

AIRBUS REGISTRATION DOCUMENT 2017 -48

- flight tests

MWh559 106

687 071- BelugaMWh451 540

485 382

MWh

2 760

3 448

MWh

1 452 760

1 534 062

MWh

1 371 842

1 405 920

purchased heat/steamMWh

80 671

127 899

generated electricity from photovoltaic on-site for

MWh

247

242

generated electricity from other renewable

MWh

0

0

MWh

188 144

190 127

aviation gasoline consumption
EN4

Total electricity consumptionof which, purchased electricity consumption

own usesource on-site for own use
Generated electricity from CHP on-site for own use

AIRBUS REGISTRATION DOCUMENT 2017 -49

AIR EMISSIONS

EN16

Total CO2 emissions

tonnes CO2

935 402

1 013 101

tonnes CO2

557 447591 002

tonnes CO2

272 679

265 350

CO2 emissions from mobile sources

tonnes CO2

269 493311 036

CO2 emissions from fugitive sources

tonnes CO2

15 203

14 579CO2 emissions from processes on site

tonnes CO2

72

37

tonnes CO2

377 955

422 099

Total VOC emissions*

tonnes

1 539

1 565

Total SOx emissions

tonnes15

15

Total NOx emissions

tonnes241

314

Total water consumption

m3

3 834 265

4 011 897

%

76,4%

76,5%

abstracted ground water

%

20,0%

19,3%

withdrawn surface water

%

3,5%

4,0%

rainwater collected used

%

0,1%

0,2%

m3

3 464 179

3 416 506m3

228 428214 200

tonnes

104 505

105 839of which, non-hazardous waste

tonnes77 83577 073hazardous waste

tonnes26 67028 766waste going to material recovery

tonnes62 34461 933waste going to energy recovery

tonnes21 95421 844

Material recovery rate

%

59,7%

58,5%

Energy recovery rate

%

21,0%

20,6%

Number of sites with ISO 14 001 /EMAS certification**

unit

61

61

Percentage of workforce covered by ISO 14001 &

%

86%

90%

Total direct CO2 emissions (Scope 1)of which, CO2 emissions from stationary sources

Total indirect CO2 emissions (Scope 2)
EN20

WATER

EN8

of which, purchased water

EN21

Total water dischargeof which, water discharged via an internal pre-treatment
plant

WASTE

EN22

EN24

EMS certification

Total waste production, excluding exceptional wasteenvironmental reporting

Data audited by Ernst & Young et Associés. Limited assurance report is available on www.airbus.com
2017 data covers 89% of total Company employees.
2016 data correspond to the data validated by the external third party in 2016, without any recalcultation to take into account perimeters
movements, which can explain some of the observed variances.
* 2017 VOC emissions data is estimated. The consolidated 2017 data will be only be available following publication of the Registration
Document.
** Number of sites covered by the environmental reporting which are certified ISO 14001.
Only 100% consolidated entities are taken into account. The data here results from Airbus’ worldwide reporting campaign, carried out by theEnvironmental network. Airbus environmental reporting includes all 100% consolidated companies with more than 50 employees, which
represent 99% of Airbus’ total workforce. Among these companies, 90% had reporting contributors and tools. Note that some entities with lessthan 50 employees are taken into account in the reporting, as they are included in bigger entities which report their environmental data.

Environmental impact of its products in operation

AIRBUS REGISTRATION DOCUMENT 2017 -50

In the last 50 years, the aviation industry has cut fuel burn and CO2 emissions per seat / kilometre by more than 80%, NOx emissions by
90% and noise by 75%. Whilst this performance is impressive, high predicted traffic growth (5% per annum), aviation’s short to mediumterm reliance on fossil-based fuels and the potential impacts of non-CO2 factors, the aviation industry faces a significant challenge in
reducing its impact on climate change.
To address the CO2 challenge, Airbus, along with airlines, airports, air traffic management and other manufacturers, committed in 2008
to the ATAG CO2 emission goals:•

Improve fleet fuel efficiency of 1.5% per year by 2020;•

Stabilise: from 2020, net carbon emissions from aviation will be capped through carbon neutral growth (CNG);•

By 2050, net aviation carbon emissions will be half of what they were in 2005.

Meeting these goals will require a truly collaborative approach across the industry, focused on a combination of improvement measures
including technology (including sustainable fuels), operational improvements, infrastructure (including air traffic management) and global
market based measures (MBMs).
Progress has been made on the first two of ATAG emission targets:•••

By delivering aircraft such as the A350 XWB, 25% more efficient than the previous generation aircraft and the A320neo with 15% to -20% fuel burn compared to A320ceo, the average increase in global fleet fuel efficiency has been over 2% perannum over the last five years.
Alongside reducing CO2 emissions, Airbus aircraft also offer significant improvements in both noise and NOx emissions
reduction: A350 XWB with up to 21dB lower noise and 27% lower NOx emission compared to current industry standards,
A320neo with up to 20dB lower noise and 50% lower NOx emission compared to current industry standards. The new H160
helicopter brings noise levels down by 50% compared to previous generation helicopters.
The recently agreed ICAO CORSIA will also play an important role in achieving CNG from 2020.

For the ambitious long-term 2050 target, clearly Airbus and the wider industry do not have all the answers today. Such significant
reductions will require disruptive approaches in technology (i.e. hybrid electric), significant quantities of low carbon fuels, innovative
ways of operating the aircraft (eTaxi, formation flight) and sustainable ways to offset emissions.
In reaching this ambition Airbus is working on a wide range of innovative technologies that have the potential for significant
environmental benefits:
•
•
•
•
•
•
•

Propulsion Integration: from advanced turbofans to hybrid distributed propulsion (i.e. electrification);
Aerodynamics: from advanced wingtip devices to natural and hybrid laminar flow;
Structures: from innovative materials to bionic structures;
Systems & cabin: from paperless/wireless to more electrical systems;
Operations: from noise to climate-optimised trajectories;
Manufacturing: from direct printing to 3-D printing;
Aircraft configuration: from integrated airplanes to disruptive configurations.

Electrification and hybridisation can bring significant benefits in addressing CO2, noise and NOx emissions. Airbus is driving a stepchange in air vehicle performance, first through small, short-range vertical take-off and landing (VTOL) urban air mobility demonstrator
projects like Vahana and CityAirbus. In the longer term Airbus will also look at larger commercial aircraft.
Airbus’ engagement also extends to promoting the commercialisation of sustainable aviation fuels. For example, in order to make a step
towards regular distribution of BioJet, Airbus and Total are working in cooperation to use sustainable fuels on ferry flights from Toulouseto Hong Kong. A biofuel delivery platform has been set-up and is in service in Toulouse.
Recyclability and waste management are important topics that Airbus is tackling in cooperation with other entities. With TARMAC
Aerosave, a joint venture between Airbus, SNECMA and Suez, more than 90% of an aircraft weight is today recycled or re-used througha selective dismantling (reverse manufacturing) process. As airplanes manufactured with large volumes of composites start retiring in
the next few decades, Airbus is working in cooperation with several specialist companies involved in carbon fibre recycling, as part of anindustry goal to determine the best processes and uses for recycled and reused carbon fibre materials. Airbus is also investigating withcertain operators innovative solutions to improve the in-flight cabin waste management.

d. Responsible Defence and Space Products
Airbus works together with states, international organisations and customers to create better defence solutions for a safer and more
prosperous world. Its military aircraft, Earth observation satellites and security technologies help protect freedom and democratic valuesby enabling governments to guarantee their sovereignty and combat changing terrorism threats and cybercrime.
It is one of Airbus’ aims to support the EU/NATO governments in their efforts to make the world a safer place. To fulfil their mission toguarantee sovereignty, security and human rights, these nations require equipment and defence systems that they themselves define.
Airbus supports the EU/NATO governments – which constitute the majority of Airbus’ customer base – in this task by supplying thenecessary equipment.
Airbus defence technologies can also be used to solve societal challenges. More ways are being explored for observation orcommunication satellites to contribute to solving some global challenges such as climate change, fast and reliable internet connection or
security. Recent projects include:•

Sentinel-5 Precursor, which is part of the joint European Commission–European Space Agency global monitoring programme
Copernicus, aims to acquire continuous and accurate Earth observation data and provide services to improve themanagement of the environment, understand and mitigate the effects of climate change, and ensure civil security.

AIRBUS REGISTRATION DOCUMENT 2017 -

51

•

•

Spationav is the coastal protection project of Signalis France, ensuring maritime security in France. Its mission is to protect
human life, the coastal environment and French national interests while covering 6,000 kilometres of coastline with 5,000
ships tracked each minute. Spationav is counteracting illegal activities such as smuggling and terrorism.
The Global Earth Observation Challenge organised by Defence and Space rewarded in October 2017, six start-ups that
innovate and develop new applications primarily based on Airbus' satellite data. Among them, two projects were linked tomonitor environmental impacts: Ozius (Australia) creates new landscape intelligence by fusing a variety of remote sensing
data to identify where the environmental risks and opportunities occurred in the past, where they are today, and project where
they will occur in the future; Kermap (France) uses satellite imagery to support the ecological transition of cities.

•

TeSeR is the next EU project to clean up space, which is led by Airbus. Technology for Self-Removal of Spacecraft (TeSeR)
aims to reduce the risk of spacecraft colliding with debris in space and provide a sustainable space environment for future
generations.

•

The OneWeb Satellites JV is building a communications network with a constellation of low Earth orbit (LEO) satellites, with agoal of enabling access to billions of people around the world. With more than 7 terabits per second of new capacity, it aims totransparently extend the networks of mobile operators and ISP’s to serve new coverage areas, bringing voice and data
access to consumers, businesses, schools, healthcare institutions and other end users.

Finally, the Airbus Foundation, which will be discussed later in this chapter, is multiplying partnerships in order to leverage Airbus’ knowhow and technologies to be applied to the humanitarian sector, with UAVs, satellite imagery and decontamination projects in particular.

1.1.8.3. Responsible Employer
a. Airbus’ Workforce
As of 31 December 2017, Airbus’ workforce amounted to 129,442 employees (compared to 133,782 employees in 2016), 95.8% of
which consisted of full-time employees. These statistics take into account consolidation effects and perimeter changes throughout 2017.
Depending on country and hierarchy level, the average working time is between 35 and 40 hours per week.
In 2017, 7,318 employees worldwide were welcomed into Airbus (compared to 7,532 in 2016 and 5,266 in 2015). At the same time,
5,151 employees left Airbus including partial retirements (compared to 4,698 in 2016 and 4,870 in 2015).
In terms of nationalities, 37.3% of Airbus’ employees are from France, 32.1% from Germany, 9.4% from the UK and 9.8% from Spain.
US nationals account for 1.9% of employees. The remaining 9.6% are employees coming from a total of 127 other countries. In total,
92.1% of Airbus’ active workforce is located in Europe on more than 100 sites.

Workforce by Division and Geographic Area
The tables below provide a breakdown of Airbus’ employees by Division and geographic area, as well as by age, including thepercentage of part-time employees.
Employees by Division

31 December 201731 December 201631 December 2015

Airbus Commercial Aircraft

74,54273,852

72,816

Airbus Helicopters

20,161

22,50722,520Airbus Defence and Space

32,171

34,397

38,206

Airbus former HQ(1)

2,568

3,026

3,032

Group Total

129,442

133,782

136,574(1) “Airbus former HQ” includes Headquarters, Shared Services and Innovation Works.
Employees by geographic area

31 December 201731 December 201631 December 2015

France47,86547,96350,810Germany

44,21446,71347,796

Spain

13,177

12,682

12,521UK

11,304

12,02012,157

US

2,707

2,829

2,821

Other Countries

10,175

11,575

10,469Group Total

129,442

133,782

136,574% Part time employees

31 December 201731 December 201631 December 2015

Group Total

4.2%

4.1%

3.9%

Active Workforce by contract type

31 December 201731 December 201631 December 2015

Unlimited contract

126,534

131,153

133,650

Limited contract > 3 months

2,908

2,629

2,924

% Active Workforce by Age

31 December 201731 December 201631 December 2015

AIRBUS REGISTRATION DOCUMENT 2017 -

52

<20

0.1%

0.2%

0.2%

20-29

10.1%

10.4%

10.6%

30-39

29.4%

29.5%

29.7%

40-49

28.4%

27.9%

27.9%

50-59

26.8%

27.1%

27.1%

60+

5.1%

4.9%

4.6%

31 December 201731 December 201631 December 2015

4.0%

3.6%

3.6%

Employee Turnover Rate*

Data audited by Ernst & Young et Associés. Limited assurance report is available on www.airbus.com*The turnover rate does not include departures of the non-active workers.

Airbus’ headcount reporting includes all consolidated companies worldwide. The internationally comparative figures are based on theactive workforce, i.e. the number of permanent and short-term employees, irrespective of their individual working times. The headcountis calculated according to the consolidation quota of the respective companies.
The scope for Human Resource (HR) structure reporting covers about 97% of Airbus’ consolidated companies, including all employeesof these companies, irrespective of their individual consolidation quota (except for the part time employee indicator where coverage is96%). This includes employees working for the Company or its subsidiaries in France, Germany, Spain, Great Britain andinternationally. In total, about 3% of the companies belonging to Airbus – usually recently acquired – are not included in the scope, as
no detailed employee data is available at group level. The coverage rate is calculated on the basis of the number of employees (active
work force).
For more details on Scope and Methodology, please refer to the Airbus website at http://www.airbus.com

b. Human Capital Management, Labour Relations and Human Rights
Airbus’ workforce is managed by the HR function thanks to a set of HR policies and a strong labour structure. HR policies are discussed
and agreed with social partners through continuous and regular meeting at global and local levels. The current priorities of the Airbus’
HR function are:•
To ensure that the Company can attract, develop and retain a world-class competent, motivated and flexible
workforce, which fits current and future business requirements;•
To facilitate diversity, continuous integration and internationalisation of Airbus and contribute to a common culture
based on strong company values;•
To be a global employer of choice and an innovative, inclusive and engaging place to work for all employees.
HR places people at the heart of Airbus’ future success.
Labour relations
Wherever it operates, Airbus wishes to grow its economic success in consideration of common principles and standards consistent with
International Labour Organisation (ILO) conventions, the OECD Guidelines for Multinational Enterprises and the principles laid down by
the UN Global Compact, which the Company has adopted. The principles are in compliance with the Airbus Standards of BusinessConduct and with the International Framework Agreement signed in 2005.
In the International Framework Agreement, Airbus reaffirms its willingness to respect the regulation regarding fundamental humanrights, equal opportunities, free choice of employment, as well as prohibition of child labour and respect and ensuring the conditions forindustrial dialogue.
Airbus in particular intends, via its agreements, to respect the disposition of the following ILO conventions: numbers 111 (discrimination- employee and occupation), 100 (equal remuneration), 135 (workers’ representatives), 29 (forced labour), 105 (abolition of forced
labour), 182 (child labour), 138 (minimum age), 87 (freedom of association and protection of the right to organise) and 98 (right toorganise and collective bargaining).
The head of each business is responsible for ensuring compliance with these principles and will take appropriate measures to ensure
their implementation.
The employees of Airbus will be informed, either orally or in writing, of all the provisions of this framework agreement, in accordancewith the relevant legal form and/or local practice.
The provisions of this framework agreement define Airbus’ standards to be applied wherever Airbus operates, insofar as morefavourable conditions do not exist already. Airbus central management shall take appropriate measures to eliminate any breach of theaforesaid principles.
Airbus is in continuous dialogue with social partners on its sites in Europe, principally through meetings with management at theEuropean Committee level but also through meetings and negotiations at national or local level. Sites outside Europe are covered by
Airbus’ ILA framing the social dialogue and social culture in line with local labour legislation, culture and practices of respective
countries.

AIRBUS REGISTRATION DOCUMENT 2017 -53

Regular social dialogue is ensured as per ILO requirements and local legislation thanks to Airbus’ Societa Europea Work Council(SEWC) agreement in 2015. In 2016, for example, Airbus organised 16 meetings with SEWC while the agreement stipulates threemandatory meetings per year.
Human Rights
Airbus has a zero tolerance approach to modern slavery within its business, its operations and within its supply chain.
Airbus is committed to promote awareness through internal communication initiatives and awareness sessions and to train its
employees worldwide on potential risks. Related risks will now be monitored via the Airbus ERM process throughout the entire
Company. Finally, subject to regulatory approval, Airbus intends to extend its existing OpenLine to concerns related to human rights andfundamental freedom.
Airbus acknowledges its role in promoting responsible business practices worldwide. To that end Airbus now seeks to identify risks
related to human rights violations in its ERM system. Risk evaluation will start in 2018. KPIs as part of Airbus’ commitments related to
the UK Modern Slavery Act will be identified in 2018. Human rights is also a topic addressed in the Airbus Supplier R&S Programme.
2017 Achievements
In 2017, Airbus provided more than 1.7 million training hours. Moreover, in 2017 more than 42,000 employees benefitted from thedevelopment, evaluation and transformation solutions proposed by the Airbus Leadership University. The purpose of the university is tostrengthen the Company’s approach to leadership, offering equivalent opportunities for all leaders to drive their development one step ahead,
while accelerating the culture evolution and human transformation in Airbus.
2017

2016

2015

Total number of Training Hours*

2,320,508

2,264,145

Total number of Training Participants*

214,819

226,692

Number of Classroom Training**

161,419***--

Number of Digital Learning**

193,200***--

Data audited by Ernst & Young et Associés. Limited assurance report is available on www.airbus.com** Change of reporting in 2017, no numbers reported for 2017.
*** New reporting scope since 2017. 51.7% digital learning in the 2017 learning plan (Active Workforce from fully-consolidated entities at 31
December 2017).
*** These figures include training sessions provided by Airbus, including to externals, to employees in subsidiaries, and to employees that havesince left the group.

On a more restrictive HR perimeter (Active Workforce from fully-consolidated entities at 31 December 2017), the number of training sessions
are the following:
Number of classroom training: 134.427•
Number of digital learning: 144.624•
Mobility of employees within or across Divisions is one of the main priorities for the overall benefit of the Company. In 2017, more than 11,000
employees changed jobs cross-divisionally and cross-country. For reference, Airbus has an attrition rate of 2.7% for its core entities and 4.0%
when its subsidiaries are included.
In order to drive its digital transformation, Airbus aims to create a people-centric and trusting working environment. Launched at the end of
2015, a company transformation programme called PULSE has been designed to support the people aspects of the business transformation
with the objective to increase empowerment, accountability and collaboration through digitally-powered capabilities, reworked HR policies andnew ways of working.
In 2017, all Airbus employees were invited to select the Company’s values. This inclusive consultation exercise included employees from 17
countries. Around 55,000 employees took part in this campaign and defined the Company’s six core values: Integrity, ‘We are One/Team
work!’, Customer focus, Creativity, Respect and Reliability.
At Airbus recognition of excellence is key. In 2017, over 1,000 projects were submitted company-wide to participate in the Awards for
Excellence scheme. The aim is to reward employees and teams for exceptional achievements, their ways of working and their contribution to
improving business performance.
Airbus additionally launched its first Dream Big Challenge, inviting employees to propose new products, business and services ideas. Over
700 ideas were submitted in 2017. Following a summit held in November, the three most promising projects were selected to be developed
further in incubators and during dedicated worldwide learning expeditions to Airbus’ BizLabs.

c. Health & Safety
To sustain its commercial success, attract the best talent and be known as a safe and healthy workplace, it is Airbus policy tocontinuously reinforce health and safety as part of the business culture, delivering responsible health and safety management thatsustainably reduces risk to people, the environment and the business. The purpose of the Airbus health and safety policy is to:•••

Demonstrate commitment to good management control of health and safety;
Describe the guiding principles for health and safety management;
Integrate health and safety into company culture, strategy, processes, objectives, and decisions;

AIRBUS REGISTRATION DOCUMENT 2017 -

54

•
•

Engender the harmonisation of health and safety philosophy and methodology, to gain risk control and efficiency
benefits;
Stimulate the sustained reduction of work related health and safety risks, in order to protect people and the Company.

To achieve its policy objective, Airbus is consolidating health and safety resources into a companywide organisation in order to drive
effective, efficient risk control. This approach is designed to deliver companywide harmonisation of philosophy and method, withproactive risk assessment and control, role-appropriate competence and development, and active monitoring, analysis and oversightreporting.
Airbus consults employee representatives, for example in direct meetings and committees, and conducts a range of communication
campaigns, thereby encouraging all employees to engage in health and safety risk management. Airbus’ industrial managers are closely
involved in the performance-monitoring process, for example conducting formal ‘go-look-see’ safety tours. All reported incidents areappropriately investigated, using root cause methodology where necessary. Significant incidents and the results of monitoring are
discussed by industrial management teams in the regular ‘Safety, Quality, Cost, Delivery, People’ management system or similar
processes.
However, health and safety is not only a compliance matter; Airbus strives to improve even further, and so is introducing a formal
corporate management framework based on the coming ISO 45001 Standard, which is supported by a common companywide health,safety and environment software platform. This software toolkit, called FISH, will start to be deployed in 2018, and will enhance its
Occupational Health, Risk Management and Incident Management capability.
Health and safety concerns caused by work activities include the possibility of injury, physical and mental ill-health, business interruption
and regulatory action. Any reputational risk and claim against Airbus that may result will also need to be managed. Data indicates thatmain causes of injury are slip, trip and fall events and manual handling. Work at height and chemicals present additional concerns. The
Company manages risks by applying risk assessment and control processes, enabling continuous risk control improvement.
To support its risk management activities, Airbus has more than 300 courses dedicated to health and safety available in its training
catalogue, addressing a wide range of topics including, for example, working at height, first aid, management of substances andmaterials and psychosocial risk. In 2016 the Company delivered over 260,000 hours of dedicated health and safety training to morethan 42,000 individual employees. In 2017, the Company has delivered about 200,000 hours of training to approximately 40,000
participants. In addition, there are over 100 digital health and safety reference courses, which employees can take at any time.
Airbus has health and safety processes for on-site subcontracting and intends to further adapt and develop such processes. Airbus
prepares prevention plans in order to identify potential risks and define prevention measures in cooperation with on-site subcontractors,
and monitors on-site subcontracting activities.
The health and safety improvement plan includes initiatives to review Airbus’ Health and Safety Policy which applies companywide
including to affiliates. The corporate health and safety management system is being developed in accordance with the principles of the
new ISO 45001 framework. This work will include defining maturity indices and performance indicators.
In order to continuously improve the management of risks, work includes project FISH (the configuration and implementation of a global
software platform for health, safety and environmental topics). This will enable the aggregation and analysis of health and safety data toform a risk topography that focuses resources to best effect. It is expected that this project will be completed in 2019. Thus, Airbus
intends to report on its health and safety KPI’s in the coming years’ management reports.

d. Inclusion & Diversity
Airbus is convinced that diversity helps foster innovation, collective performance and engagement. Harnessing everyone’s uniquepotential while ensuring an inclusive workplace is what it takes to succeed together. At Airbus, we live diversity as a core part of ouridentity: Airbus is proud of its European roots and passionate about its achievements around the world. More than 135 nationalities are
represented and more than 20 languages are spoken within the Company. But the demographics of the world are changing, and thischange impacts Airbus because it affects customers, suppliers, employees and Airbus’ candidate pool. Airbus must face the 21st
century’s challenges with 21st century people and solutions.
Airbus’ approach to Inclusion & Diversity (“I&D”) takes different forms including: I&D Steering Board chaired by the Airbus CEO,dedicated training and awareness, internal incentives for international mobility, initiatives to attract women, flexible work-life solutions. In
fact, the Company strives to ensure I&D is embedded in all it does, serves business purposes and benefits all employees worldwide.
With full support of the entire HR function, I&D initiatives are run and coordinated by a dedicated team of experts worldwide. The
Company’s efforts are also supported by several employee networks such as Balance for Business and platforms for exchange like
‘Knowing Me, Knowing You’.
In line with its aspiration for a more diverse workplace, Airbus is working to increase the number of applications from areas that are
currently under-represented in its workforce, including but not limited to women, nationalities, age groups and social backgrounds toensure a broader range of candidates for open positions.
In order to support recruitment of women in all areas, Airbus has entered into partnerships to increase the number of women starting acareer in the aeronautical industry – for example with Capital Filles, Women in Aviation, IAWA. Internally, an I&D network of over 4,000
employees work on how to attract, develop and retain diverse profiles, especially women, in the Company. In parallel, Airbus strives toincrease the number of women in leadership positions, including through dedicated coaching and training such as ‘I Unleash My
Potential’ as well as by fighting stereotypes in internal conferences or workshops. In terms of internationalisation of profiles, Airbus
facilitates the attraction of talents from around the world to Airbus’ traditional home countries (France, Germany, Spain, UK) through an
International Graduate Programme enabling talents from all around the world to come and work on their development over one year at
Airbus sites in Europe. In addition, Airbus also put in place several actions to boost mobility from other regions to the home countries.
Although Airbus welcomes many forms of diversity, it measures the evolution of the diversity of its workforce with a specific focus ongender diversity and internationalisation with key KPIs such as: proportion of women promoted to a position of senior manager or

AIRBUS REGISTRATION DOCUMENT 2017 -55

above, proportion of women among white collar external hires, gender pay gap (if any) at all levels between women and men, and thenumber of moves from the key countries (including India, China, US) to the home countries.
Airbus has launched several actions to embrace other forms of diversity, including:•••Reverse mentoring to connect all generations in the Company;
Accompany the creation of Employees Resource groups like Pride@Airbus (LGBT+ network);
Coordinate all local strategies towards disability with several thousand differently abled employees all around the world.

Finally, Airbus offers a wide scope of trainings supporting I&D initiatives and has also embedded a diversity aspect in leadershipprogrammes.
As far as the Airbus Board of Directors is concerned, Airbus is moving in the right direction with 3 women in 2017 compared to not asingle woman on the Board in 2013. They are Catherine Guillouard, Claudia Nemat, María Amparo Moraleda Martínez.
For a description of the diversity policy of the Airbus Board of Directors, see “— Corporate Governance — 4.1.1 Corporate Governance
Arrangements” under the heading “Board of Directors” and “— Corporate Governance — 4.1.2 Dutch Corporate Governance Code,“Comply or Explain” under the heading “Gender diversity”.

31 December 201731 December 201631 December 2015

Women in active workforce

17.5%

17.2%

17.2%

Women in management positions

12.4%

11.4%

10.9%

The % of women in management positions only applies to the top 4% of the active workforce.

1.1.8.4. Responsible Businessa. Ethical Business Practices
Leading by example
The Airbus Ethics & Compliance Programme seeks to ensure that the Company's business practices conform to applicable laws,
regulations and ethical business principles, as well as developing a culture of integrity.
In 2017, Ethics and Compliance was a top priority for Airbus. In its list of priorities for the year, Airbus set the objective to:“Engage and develop our people worldwide to excel today and tomorrow by adopting key digital skills and mind-set, reinforced
ethics & compliance adherence and a strong focus on diversity”.
Airbus also announced the appointment of an Independent Compliance Review Panel (ICPR) composed of eminent external
consultants to help Airbus further improve its processes. The ICRP members are Lord Gold from the UK, Noëlle Lenoir from France andTheo Waigel from Germany. All well-versed in compliance monitoring of large corporations, they will have access to all levels of theCompany and will report to the Airbus CEO and Board on how to further improve Airbus’ compliance processes, policies, organisationand culture.
Compliance is at the heart of everything Airbus does today – Airbus is putting significant resources and effort into supporting thecoordinated criminal investigations by the UK Serious Fraud Office (SFO) and France’s Parquet National Financier (PNF). For further
information on the investigations, see “— 1.1.7 Legal and Arbitration Proceedings”.
Our Commitment
Over the years, Airbus has earned the trust of passengers, customers, operators and other stakeholders through the quality and safetyof our products. To fully serve our communities and thrive in the future, our commitment to business integrity must be just as robust –this means conducting our business ethically and based on Airbus values, and in compliance with all laws and regulations.
As part of this commitment, Airbus supports the principles of the UN Global Compact and IFBEC’s Global Principles of Business Ethics
which set a benchmark for high ethical standards globally.
Our Standards
The foundation for integrity at Airbus is the Standards of Business Conduct. These Standards are intended to guide daily behaviour andhelp employees resolve the most common ethical and compliance issues that they may encounter.
The Standards of Business Conduct apply to all employees, officers and directors of Airbus as well as entities that Airbus controls.
Third-party stakeholders whom Airbus engages are also expected to adhere to these Standards of Business Conduct in the course of
performing work on our behalf.
Our Programme
While the Standards of Business Conduct provide a useful starting point, they cannot answer all questions, nor are they sufficient toensure that Airbus complies with the myriad legal requirements applicable to its business. Because of this, Airbus has worked over the
past several years to develop an Ethics & Compliance programme that is structured around four key risk areas: Business Ethics/AntiCorruption Compliance, Export Compliance, Data Protection Compliance and Procurement Compliance.
Each of these areas is, in turn, supported by dedicated compliance policies and a team responsible for their implementation, together
with the identification and proposal of new measures to adapt to a constantly evolving regulatory landscape.

AIRBUS REGISTRATION DOCUMENT 2017 -56

Improving the programme is a constant and ongoing process, not only in the area of Business Ethics/Anti-Corruption but across the
ethics and compliance spectrum more generally in order to capitalise on our values.
Business Ethics/Anti-Corruption Compliance
Airbus rejects corruption of any kind, whether public or private, active or passive. This means that neither Airbus, its employees or third
parties acting on its behalf may offer, promise, give, solicit or receive – directly or indirectly – money or anything of value to or from agovernment official or someone in the private sector in order to obtain or retain business or secure some other improper advantage.
The
Anti-Corruption
Policy(availableat
http://company.airbus.com/dam/assets/airbusgroup/int/en/group-vision/ethicscompliance/documents/Airbus-Group-Anti-Corruption-Policy.pdf) summarises its stance of zero tolerance. It also refers to some of thespecific directives Airbus has adopted to address key anti-corruption risk areas, such as the engagement of third parties, gifts andhospitality exchange and the making of sponsorships and donations.
More broadly, Business Ethics at Airbus also covers other areas such as conflicts of interest, anti-competitive conduct, insider trading,fraud, etc., while also complementing the Airbus Corporate Social Responsibility programme which focuses on managing the social andenvironmental impacts of Airbus’s operations.
Export Compliance
Each of the countries in which Airbus does business has controls on the export and transfer of its goods and technologies that areconsidered to be important to national security and foreign policies. As a global enterprise, it is Airbus’ responsibility to respect andcomply with each of these controls. The Export Compliance Directive defines its policies, processes and organisation to ensurecompliance with all relevant export control laws and regulations.
Data Protection Compliance
Airbus is required to handle personal data in accordance with applicable data privacy laws at national, European and international level.
In doing so, Airbus seeks to apply a consistent approach, by setting data security standards for personal data processing in line with
globalbest
practice.
Thisisembodied
in
part
by
its
Binding
Corporate
Rules(availableat
http://company.airbus.com/dam/assets/airbusgroup/int/en/group-vision/ethics-compliance/documents/Airbus-Group-BCR/Airbus%20Group%20BCR%20.pdf), which provide a consistent level of protection for various personal data throughout Airbus.
Procurement Compliance
Airbus suppliers must comply with all applicable laws and regulations of the countries in which operations are managed or services
provided. In addition, wherever suppliers are located, all business should be conducted in a manner compatible with the Airbus Supplier
CodeofConduct(availableat
http://company.airbus.com/dam/assets/airbusgroup/int/en/group-vision/ethicscompliance/documents/Supplier-Code-of-Conduct/Supplier%20Code%20of%20Conduct.pdf). Suppliers are also expected to cascadethese principles through their own supply chain. For further information see “— Responsible Suppliers” below.
Our E&C Organisation
The Ethics & Compliance organisation is part of the Legal Department under the ultimate responsibility of the Airbus General Counsel.
The aim is to provide strong governance throughout the company with the global presence of qualified compliance officers who ensure
the compliance programme is implemented in the different functional and operational areas.
They do this in close cooperation with its employees and management, who are expected to lead with integrity by example and takeresponsibility for compliance within their scope of activity.
New and Updated Policies
In January 2017, Airbus published a directive defining the requirements for sponsorships, donations and memberships. The directive
establishes a Company-wide framework and provides guiding principles and clear instructions on how to request, approve and record
contributions.
In February 2017, Airbus published a directive defining the requirements for the prevention of corruption in the engagement of lobbyists
and special advisors. The purpose of the directive is to ensure that Airbus’ political engagement through lobbyists or special advisors
remains fully transparent and ethical, and facilitates Airbus' compliance with all applicable laws.
In June 2017, an updated version of the Airbus Standards of Business Conduct was published, to comply with the requirements ofFrance’s new Sapin II law. The updated version defines both bribery and influence peddling, and provides illustrations of each. Changes
were also made to cross-refer to the Airbus Anti-Corruption Policy, and to include a new section on Anti-Money Laundering.
In June 2017, an updated version of the Airbus OpenLine Policy was also published, to enhance the provisions to protect thewhistleblower from retaliation in line with Sapin II.
In September 2017, Airbus published its revised Business Development Support Initiative Directive (BDSI). The directive defines the
Airbus requirements for the prevention of corruption in the engagement of BDSI third parties. It provides employees with step-by-step
explanation of the due diligence, engagement, remuneration and monitoring of BDSI third parties.
In October 2017, Airbus published a directive defining the requirements for identifying and mitigating corruption risks in connection with
M&A, JV and similar transactions. This directive is intended to help ensure a consistent approach to these matters across Airbus.
Our Awareness and Training
Airbus aims to educate its people about the standards of conduct that apply to their jobs and the potential consequences of violations.
Target populations are reviewed annually and required to undergo training and awareness eLearning or face to face sessions based on
job function, role and responsibility.
In 2017, Airbus conducted 84,273 Ethics & Compliance digital training sessions.

AIRBUS REGISTRATION DOCUMENT 2017 -57

Our Confidential Speak-Up Channel: OpenLine
Airbus recognises that the Standards of Business Conduct cannot address every challenging situation that may arise. Airbus therefore
encourages its employees to speak-up through various channels, including through OpenLine (https://www.airbusopenline.com/). The
OpenLine enables employees to confidentially raise their concerns via the internet or by phone. Subject to local legal restrictions, the
OpenLine alert system has been available for several years to employees in France, Germany, Spain, UK, Canada, Brazil, Australia andthe US. In 2014, it was made available to employees in Mexico, China and Saudi Arabia. Airbus does not tolerate retaliation against
employees making reports in good faith and/or assisting in investigations of suspected violations of the Standards of Business Conduct.
For further information on the OpenLine please refer to the Airbus Group OpenLine Policy (available athttps://www.airbusopenline.com/PoliciesAndNotices). Employees, customers, suppliers and third-party intermediaries are encouraged toshare their concerns with management or with Ethics & Compliance resources.

b. Responsible Suppliers
Airbus designs and integrates complex aerospace and defence products, leveraging an extensive supply chain. Co-operation with
suppliers occurs in several fields of the business and is key to ensure quality standards which lead to shared success, growth throughinnovation and a commitment to sustainability. Airbus also engages its suppliers on its sustainability journey and shares a commitment
to improve social and environmental performance, constantly driven by values of integrity and transparency.

1.

Procurement at Airbus

More than 15,000 suppliers from more than 100 countries supply parts, components or sub-systems to Airbus. In 2016, Airbus spentaround €49 billion with its suppliers. The Procurement function is improving its performance through creating a more integrated,
effective and lean organisation. It aims at increasing harmonisation of internal and supplier-related processes, job profiles, training
processes and tools.
Whilst Airbus products and services are sold all over the world, the majority of its workforce and supply chain are based in Europe andthe Organisation for Economic Cooperation and Development (OECD) countries. In the past few years, the supply chain has become
concentrated and more international. Such rising concentration is the result of consolidation within the aerospace and defence sector,
as well as larger work packages for the major new aircraft programmes being placed with a smaller number of lead suppliers. Airbus
has identified global sourcing as one of its leading long-term objectives. To promote the globalisation of its sourcing footprint, an Airbus
Global Sourcing Network (GSN) has been established including regional sourcing offices in USA, China and India.

2.

Responsible Supplier Management

As a global leader in aeronautics and space, Airbus has taken a commitment to conduct its business responsibly and with integrity.
Taking into consideration the level of outsourcing at Airbus, the supply chain is an integral part of Airbus’ ecosystem and the Company
is therefore committed to ensure that, as far as possible within its own scope of responsibility and legal obligations, potential adverse
impacts of Airbus activities are managed. The Procurement function is ISO 14001 certified as part of the global Airbus environmental
certification.
The Airbus Supplier Code of Conduct is the document of reference for Airbus’ responsible supplier management. This Code represents
the group wide values and principles in line with internationally recognised standards and conventions (such as OECD and ILO). It has
been developed with the International Forum on Business Ethical Conduct (IFBEC) in 2015 in the form of a Model Supplier Code of
Conduct. Airbus is proud to be a co-founder of IFBEC, which supports the application of global standards for business ethics andcompliance in the aerospace and defence industries. Airbus implemented the IFBEC Model Supplier Code of Conduct in its entirety as
the Airbus Supplier Code of Conduct in 2016.
The Supplier Code of Conduct was sent to the 12,000 main suppliers across the world with a letter from the Airbus’ Chief Procurement
Officer and the Airbus General Counsel requesting a commitment to the Code. Airbus expects its suppliers to comply with the key
values set out in this Code and to conduct business in accordance with all applicable laws and regulations of their operating markets,the countries in which operations are managed, or services provided. Suppliers are also expected to cascade these principles
throughout their own supply chains.
Supplier Quality Audits and Supplier Mapping
Supplier audits and assessments support the goal of ensuring that supplier deliveries meet Airbus’ specific requirements. Suppliers
whose activities impact the airworthiness of Airbus products are assessed annually, with five areas of performance evaluated: quality,
logistics, customer support, commercial performance and technical performance. Around 1,000 audits and assessments have been
performed in 2016 for Airbus’ commercial aircraft business.
As part of supplier management activities in the field of quality, Airbus Commercial Aircraft has put in place, the Supplier Mapping toolwith multiple capabilities, notably to identify Airbus supply chain sub-tiers and support identification of risks of supplier non-performance.
In 2016, a total of 6,904 suppliers from 58 countries were identified by the Supplier Mapping tool of which 1,007 were tier-one suppliers,
5,452 second tier suppliers, 445 other tier levels. A total of 97,537 activities were involved and 40 quality alerts resulted from 550
analyses and reports. The alerts were managed internally by the Procurement supply chain management department.
Ethics & Compliance Supplier Watchtower
The Ethics & Compliance Supplier Watchtower is managed by the Procurement Compliance department proactively checking specificsuppliers for compliance aspects.

AIRBUS REGISTRATION DOCUMENT 2017 -58

Suppliers are checked depending on the risks linked to their country of registration. The risk rating of countries is defined by theProcurement Compliance department and updated regularly. Criteria comprise export restrictions and responsibility and sustainabilityrelated elements such as anti-corruption, human and labour rights.
Supplier Integrity Checks investigate compliance concerns which are triggered by certain business relationships. Such concerns arecomprised of, for the company or its ownership, among others: legal investigations or judgments, negative press reports, incidents ofcorruption, listings on sanction lists/blacklists, proximity to governments or risky entities (shareholders, customers, beneficial owners
and subsidiaries). In case a Supplier Integrity Check yields concerns, a Procurement management meeting is held to discuss potential
additional due diligence measures and mitigation actions. About 700 Supplier Integrity Checks were conducted in 2017 (about 600 in2016).
A Supplier Integrity Check can be performed on demand and is also embedded in the supplier registration process and eProc, anelectronic platform where buyers and suppliers perform all aspects of calls for tender, from identification of potential suppliers, contract
awarding, to supplier evaluation and spend analysis.
Environment, Health and Safety in the Supply Chain
Identification of potential risks related to legal and regulatory requirements that may be applicable to Airbus’ management of complianceof its activities and products and the communication of information on the composition of its products depends on the level of
information made available by the supply chain.
Airbus Procurement is continuously striving to improve the integration of environmental, health and safety elements into the purchasing
process.
Current standard procurement contracts include requirements for suppliers to comply with all applicable laws and regulations regarding
production, products and services and requirements for suppliers to provide information on substances used in manufacturing
processes, contained in their products and on environmental, health and safety matters, including information to enable safe use, formanagement of the product across its lifecycle (including waste management). Suppliers are also requested to implement an
Environmental Management System which shall consider continuous improvement through the mitigation of significant environmental
aspects and impacts, including air emissions (e.g., Greenhouse Gas, Volatile Organic Compounds); waste, water discharges, rawmaterial consumption.
Regarding supplier environmental control and monitoring, Airbus performs the following activities: collecting data from suppliers is madethrough a Material Declaration Form to enable Airbus to identify which substances are used, tracking and declaring them in the frame ofsubstances regulation such as REACH. Environmental requirements are included in supplier audits and the Industrial Process Control
Assessment (IPCA). In addition, the Environmental Obsolescence Risk at Supplier (EORS) assesses the level of maturity of supplierprocesses for management of Airbus environmental requirements and regulated substances obsolescence management processes.
EORS are applicable to all Airbus Commercial Aircraft suppliers – EORS campaigns have targeted the supplier of cabin, systems andequipment, engines and nacelles products.
The Procurement function is ISO 14001 certified as part of the global Airbus environmental certification.
Zero Tolerance Approach to Modern Slavery in Supply Chain
Airbus has a zero tolerance approach to modern slavery within its business, its operations and within its supply chain. In June 2017,
Airbus published its first public statement on modern slavery as per the requirements of the UK Modern Slavery Act 2015.
Recognising that modern slavery could occur in all areas of its value chain, Airbus has set up a Modern Slavery Steering Group within
its UK business. The remit of this cross-functional group is to support and drive Airbus’ approach to reducing the risk of modern slavery
in its supply chain, and ensure that policy decisions and activities are coordinated, well led and effective.
The Airbus Supplier Code of Conduct includes the requirement to adhere to regulations prohibiting human trafficking and forced orindentured labour. In 2016 and 2017, Airbus held awareness sessions with key people working in its UK Procurement teams on modern
slavery. Those sessions included information, guidance and advice on identifying potential risks in the supply chain. More in-depth
training sessions took place in 2017 to include key teams in high risk areas, along with on-line training, information bulletins and news
articles bringing this important subject to the attention of the wider workforce.
The Airbus “Procurement Academy” provides training on core competences and skills to develop procurement expertise. The Academy
has introduced a complete set of common training solutions, covering the full range of supply chain topics, including an external
qualification. Additionally, training is offered to suppliers around the world. The Procurement Academy also develops innovative
development solutions to prepare Procurement employees to future challenges such as talent development programme, shaping thejobs of the future and connect with the Procurement community on end to end activities.
Promoting disability friendly companies
Since 2011, Airbus in France has been promoting employment of disabled people by its suppliers. Concretely, a specific mention is
integrated into all relevant calls for tender launched, requesting bidding suppliers to propose a partnership with a disability friendly
company.
At the end of 2016, the global volume of business with disability friendly companies in France was 37 million euros with an increase of
30% compared to 2015 for the whole of Airbus in France. 51 disability friendly companies are working with Airbus compared to 10 in2010. An extension of this project to Airbus sites in Spain and Germany is planned based on the same philosophy: create jobs forpeople with disabilities in specialised companies.

3. Moving forward: Airbus Supplier R&S Compliance Programme: Vigilance Plan

AIRBUS REGISTRATION DOCUMENT 2017 -59

To deliver parts, components, sub-systems or services, quality, reliability and economic efficiency is key to its operations. However,Airbus believes that this should not be at any cost and as such is committed to engage in due diligence actions with its suppliers withregard to issues of Responsibility and Sustainability.
Airbus strives to make sustainability a core element of its procurement process. Airbus has a long established and integrity-driven
procurement process which manages relationship with suppliers from strategy, supplier selection, contract management to suppliermanagement. Environmental activities in Procurement have paved the way to integration of wider corporate social activities within the
supply chain.
Willing to encourage development of responsible suppliers and manage the potential adverse impacts of its activities as well as tocreate new opportunities, in 2017 Airbus launched a Supplier R&S Compliance Programme, following international guidance such as
the OECD guidance on responsible business conduct. The programme has also been designed to increase supplier awareness in theseareas to facilitate suppliers’ compliance with applicable regulations requiring risk identification and management related to corporatesocial responsibility (CSR) including environment, health and safety, human rights and anti-corruption matters.
The Supplier R&S Compliance Programme initiated and defined in 2017 will continue and evolve year on year on the principle ofcontinuous improvement. The Supplier R&S Compliance Programme has been presented to and reviewed by the Procurement
Executive Team led by the Airbus Chief Procurement Officer.
The Supplier R&S Compliance Programme and its activities are managed by the Airbus Procurement Compliance department, together
with relevant Airbus Procurement stakeholders. To this end, the existing Airbus Procurement environmental network withrepresentatives from the different Procurement categories of purchase has been extended to cover other CSR-related topics. The aim of
this network is to ensure that the entire Airbus Procurement community is made aware of CSR-related topics and support theidentification of risks according to the category of purchase. The Airbus Procurement R&S network can also support initiating
cooperation with suppliers as well promoting industry-recognised practices. Additional governance exists with the R&S, Legal and Ethics& Compliance departments.
The Supplier R&S Compliance Programme is based on four key elements:A.

CSR-related risk identification and evaluation

All Procurement related risks are embedded into the company’s ERM system. A specific risk category regarding CSR-related risks in the
supply chain has been integrated into the ERM system.
The Procurement function supported by the Procurement risk department manage ERM in procurement fields, as well as duly reportissues to top management. Along with identification and reporting of CSR-related risks, a proactive supplier risk mapping is being
performed in line with international guidance. Such risk mapping results from both a country and a purchasing category approach. The
CSR-related risks levels per category of purchase have been analysed and reviewed with the relevant Procurement commodities.
This supplier risk mapping aims to detect areas where procurement activities are exposed to significant potential risks. With those
suppliers linked to higher risk activities, specific actions started in 2017 will continue to be implemented in 2018. Such mitigation actions
currently include the performance of Supplier Integrity Checks (see previously mentioned part on Ethics & Compliance Supplier
Watchtower). New mitigation actions such as supplier evaluation will be implemented following a period of trial phase.
B.

R&S in supplier selection and contracting

For the last few years, Procurement standard contracts have evolved to include clauses requiring suppliers to comply with all applicablelaws and regulations as well as clauses on specific topics such as environment. In 2018, a more detailed clause on anti-corruption will
be incorporated into procurement contract templates to further specify Airbus’ requirements in this domain.
Furthermore, Airbus is currently evaluating how to reinforce CSR-related requirements such as those on Human Rights, along theselection and contracting phase with suppliers. During the call for tender phase, results of the CSR-related risk assessment will be used
to require further supplier evaluation if deemed necessary.
To enable successful implementation, Airbus will perform training and awareness activities for its buyers in addition to the specifictraining that already exists in the areas of environment and ethics and compliance.
C.

Supplier evaluation and continuous improvement

Supplier CSR-related evaluation assesses the compliance of suppliers with Airbus requirements in these fields and allows theidentification and integration into Airbus requirements of potential supplier improvement actions. Airbus is currently defining the options
for supplier CSR-related evaluation and audits and how to integrate these activities to existing supplier assessment activities, such as
supplier self-evaluation, desktop review or onsite audits. Airbus is also exploring potential solutions for the wider aerospace and defence
sector via its participation to sector national associations. Once defined and approved, a trial phase will be performed with specificsample of suppliers. Clear guidance on how to manage audit results will be integrated into the relevant Procurement processes.
From 2018 onwards, Airbus will strive to implement the above four elements, deploying corresponding targets for each of them. The
programme is integrated into Airbus’ Procurement strategy and is discussed and reviewed by a Steering Committee composed of the
Executive Committee of Procurement.
D.

R&S in the Procurement process

Airbus is currently assessing all Procurement processes and tools in order to integrate CSR-related requirements where relevant. This
will lead in 2018 to the adaptation of Procurement process documentation managed by the Procurement strategy teams. Key
documentation such as the Airbus Supplier Code of Conduct or Supplier Integrity Check application will be embedded into theProcurement tools, such as eProc.

c. Local socio-economic footprint
AIRBUS REGISTRATION DOCUMENT 2017 -60

Airbus recognises the importance of contributing to the development of the communities in which it operates. Airbus was created byestablishing a European partnership not only on one aircraft programme but on a long term industrial project. This same spirit ofcooperation drives the development of the Company’s international footprint. Airbus is a truly global company that acts local. Airbus’
approach to community engagement is driven by the willingness to develop a win-win cooperation with the local eco-system and often
materialises through partnerships with local NGOs, institutions and other companies.
1.

Local Involvement

Sponsorships and donations are often meaningful ways to have a positive global impact in the communities and society at large. Byleveraging its skills, know-how, expertise and passion of its employees, Airbus can bring positive contributions to local communities
around its sites. Airbus’ directive on sponsorships, donations and memberships provides a Company-wide framework to ensure its local
actions are aligned with global strategy, priorities and values. While it naturally supports the local aerospace and defence community,
Airbus encourages initiatives around:•
Education and Youth Development (preferably in STEM)•
Corporate citizenship and/or local community engagement•
Humanitarian and/or Environment•
Innovation, R&T and Science
Today Airbus undertakes a large number of sponsorship and donation projects across the globe and contributed to more than 900
initiatives in 58 countries in 2017.

2.

Volunteering at Airbus

In 2017, Airbus mapped the volunteering force of its employees worldwide. Mid-2017, about 5,000 Airbus employees were involved involunteering for 85 initiatives contributing to the following SDGs:•
SDG 2: Zero Hunger•
SDG 3: Good Health and Well-being•
SDG 4: Quality education•
SDG 5: Gender equality•
SDG 8: Decent work and economic growth•
SDG 10: Reduced Inequalities•
SDG 13: Climate action•
SDG 15: Life on Land
Airbus encourages and looks for ways to facilitate its employees’ social and environmental initiatives to contribute to societal
challenges in the communities around their workplaces.

3.

The Airbus Foundation“With the Airbus Foundation, we reach out to a large population, inspiring young people and supporting humanitarian missions aroundthe globe. I would like to thank Airbus employees for their passion in serving our communities.” Tom Enders, Airbus CEO
Based in Toulouse, the Airbus Foundation has a socio-economic footprint worldwide. Its goal is to support the international aid
organizations in regions where the company operates and beyond. The Airbus Foundation brings products and resources, from relief
flights to satellite imagery, to the humanitarian aid community to help alleviate some of the world’s most pressing challenges. In parallel,
the Foundation invests in communities around the world with the aim of inspiring and encouraging youth development through contact
with the aerospace industry.
Through its Humanitarian Flight Programme, the Foundation offers Airbus customers to use the delivery of their new aircraft tocontribute to humanitarian efforts. By doing so, the programme helps the humanitarian community reduce its high logistics costs bydelivering medical and school supplies, food, water sanitation equipment, toys, clothing and emergency response units to the mostvulnerable around the world. The Programme also utilizes, where possible, Airbus flight test aircraft for such missions. Since its launch
in 2008, Airbus Foundation has coordinated 61 humanitarian flights, delivering approximately 800 tonnes of aid in over 25 countries. In
addition, during the very first hours of a crisis, Airbus Helicopters is able to save people from harmful situations as well as support on
ground rescuers to assess emergency situations. Since 2012 over 345 helicopters flight hours have been chartered in 11 countries,
amounting to 490 000€. Over the years the foundation also trained about 700 doctors and rescuers, enabling them to operate theCompany’s helicopters to ensure the development of Emergency Medical Services around the world. Finally, satellite images can beused to assist humanitarian organisations in the wake of a crisis in a number of ways. In August 2017, a Foundation branded satellite
portal was opened, providing free of charge access to satellite imagery to selected partners with whom we have entered into
partnerships. Access has been granted to IFRC and is planned for UN WFP and MSF.
Since the launch its youth development activities in 2012, more than 8,000 young people worldwide were involved with the aim to help
them prepare for tomorrow’s challenges. More than 1,200 Airbus volunteers worldwide supported these inspiring programmes and indoing so have developed their own skills. One of its flagship programmes, the Flying Challenge, focuses on young people who are at
risk of dropping out of the educational system and subsequently missing training and employment opportunities. The programme has
been deployed in fourteen Airbus sites across France, Germany, Spain, the UK and the US.
With programmes like the Airbus Foundation Little Engineer and Discovery Space, the Foundation uses aerospace to spark an interestin science, technology, engineering and mathematics (STEM), facilitating the access to STEM skills for thousands of young minds
around the world.
For more information, please refer to the latest Airbus Foundation Activity Report, which is available at www.airbus.com.

AIRBUS REGISTRATION DOCUMENT 2017 -

61

4.

Development Pact between Airbus and Toulouse

At the local level, on 5 June 2016, Airbus CEO Tom Enders and Jean-Luc Moudenc, President of Toulouse Métropole, signed theeconomic attractiveness and development pact between Airbus and Toulouse Métropole, strengthening the cooperation that has beenin place for nearly 50 years. The goal of the pact is to create the conditions required for maintaining the attractiveness and long-termsustainability of Airbus’ sites in Toulouse, and those of its partners, and to favour the development of Toulouse’s innovation ecosystem.
Airbus directly employs nearly 28,000 people in the Toulouse area. The commercial aviation site includes the Company’s operational
headquarters, its design offices and final assembly lines for the A320, A330, A380 and A350, and is the largest industrial site in Francewith a total surface area of 650 hectares. Every day, more than 41,000 people enter and leave this site.
This activity feeds a network of more than 1,500 suppliers working at every level, temporary staff and customers, and represents morethan 50,000 employees. Furthermore, the metropolitan area has secondary education and university opportunities needed forrecruitment purposes: vocational baccalaureates, baccalaureate + 2-years training courses, engineering degrees and specialised
training. The many research laboratories make it possible to establish a number of partnerships in a variety of areas.
As the attractiveness of a region does not concern the economic and technological fields alone, Airbus and Toulouse Métropole areworking together on the metropolitan area’s attractiveness from the point of view of lifestyle and quality of life, the excellence of its
school, universities and medical facilities, the cultural heritage, the quality and variety of cultural amenities and events. For example,
Stade Toulousain represents the French Occitanie region where Airbus has been supporting the local community’s work-life balancethrough its sponsorship of the team since 1983. Team spirit, engagement, respect and a taste for challenge: these values unite Airbus
and the rugby club Stade Toulousain.
Airbus provides support for the amenities related to scientific, technical and industrial culture such as Aeroscopia, the Cité de l’Espace
and the Quai des Savoirs.

AIRBUS REGISTRATION DOCUMENT 2017 -62

1.2 Recent Developments
On 7 February 2018, Airbus has signed a DOI with the A400M Launch Customer Nations (Germany, France, United Kingdom, Spain,
Turkey, Belgium, Luxemburg) defining the framework for achieving a mutually binding contract amendment later in the year (pleaserefer to the “— Notes to the IFRS Consolidated Financial Statements — Note 5: Revenues and Gross Margin”).
On 9 February 2018, in line with standard airworthiness procedures the European Aviation Safety Agency (“EASA”) has published an
Emergency Airworthiness Directive following an issue identified on a limited number of recently delivered Pratt & Whitney (“P&W”) GTF
engines. Airbus has informed its affected A320neo family customers and operators. Airbus and P&W are investigating the root cause ofthis recent finding.
On 7 March 2018, Airbus announced the finalisation of the sale of Plant Holdings, Inc., which holds the Airbus DS Communications Inc.
business, to Motorola Solutions after receiving the required regulatory approvals. This divestment is part of the portfolio reshaping within
the Airbus Defence and Space Division announced in September 2014.
On 7 March 2018, following the previously announced changes to the A380 and A400M delivery plans, Airbus confirmed the formal
adjustment of production rates for its A380 and A400M programmes. The new plan, which was presented to the European Works
Council today, involves the production of six A380s per year starting from 2020 and eight A400Ms per year, also as of 2020.

AIRBUS REGISTRATION DOCUMENT 2017 -63

2.
Management’s Discussion
and Analysis of Financial Condition
and Results of Operations
2.1 Operating and Financial Review
The following discussion and analysis is derived from and should be read together with theaudited IFRS Consolidated Financial Statements of Airbus as of and for the years ended
31 December 2017 and 2016. These financial statements have been prepared inaccordance with International Financial Reporting Standards (“IFRS”) issued by theInternational Accounting Standards Board as endorsed by the European Union, and withPart 9 of Book 2 of the Dutch Civil Code. When reference is made to “IFRS”, this intends
to be EU-IFRS.
The following discussion and analysis also contains certain “non-GAAP financial
measures”, i.e., financial measures that either exclude or include amounts that are notexcluded or included in the most directly comparable measure calculated and presented inaccordance with IFRS. Specifically, Airbus makes use of the non-GAAP measures (i.e.
Alternative Performance Measures) “EBIT Adjusted”, “net cash” and “free cash flow”.
Airbus uses these non-GAAP financial measures to assess its consolidated financial andoperating performance and believes they are helpful in identifying trends in its
performance. These measures enhance management’s ability to make decisions withrespect to resource allocation and whether Airbus is meeting established financial goals.
Non-GAAP financial measures have certain limitations as analytical tools, and should not
be considered in isolation or as substitutes for analysis of Airbus’ results as reported under
IFRS. Because of these limitations, they should not be considered substitutes for the
relevant IFRS measures.
At the end of the 2016 financial year, Airbus implemented the European Securities andMarkets Authority’s guidelines on Alternative Performance Measures. As a result, certain
items are no longer labelled as “one-offs”. Such items are now labelled as “Adjustments”.
Airbus no longer measures and communicates its performance on the basis of “EBIT*” (i.e.
EBIT pre-goodwill impairment and exceptionals) but on the basis of “EBIT” (reported).
Terminology has changed such that “EBIT* before one-offs” has been replaced by “EBIT
Adjusted” and “EPS* before one-offs” has been replaced by “EPS Adjusted”.

AIRBUS REGISTRATION DOCUMENT 2017 -64

2.1.1

Overview

With consolidated revenues of € 66.8 billion in 2017, Airbus is a global leader in aeronautics, space and related services. Airbus offers
the most comprehensive range of passenger airliners from 100 to more than 600 seats. Airbus is also a European leader providing
tanker, combat, transport and mission aircraft, as well as one of the world’s leading space companies. In helicopters, Airbus provides
the most efficient civil and military rotorcraft solutions worldwide. In 2017, it generated 85% of its total revenues in the civil sector(compared to 83% in 2016) and 15% in the defence sector (compared to 17% in 2016). As of 31 December 2017, Airbus’ active
headcount was 129,442 employees, decreased compared to 2016 (133,782 epmployees) mainly reflecting perimeter change fromdivestments.

2.1.1.1

Exchange Rate Information

The financial information presented in this document is expressed in euro, US dollar or pound sterling. The following table sets out, forthe periods indicated, certain information concerning the exchange rate between the euro and the US dollar and pound sterling,
calculated using the official European Central Bank fixing rate:

AverageYear ended

Year-End

€/US$

€/£

€/US$

€/£

1.10950.72591.08870.734031 December 2016

1.10690.81951.05410.856231 December 20171.12970.8767

1.19930.887231 December 2015

2.1.1.2

Reportable Business Segments

Airbus operates in three reportable segments which reflect the internal organisational and management structure according to thenature of the products and services provided.
•

Airbus Commercial Aircraft: 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 aircraftcomponents;•

Airbus Helicopters: development, manufacturing, marketing and sale of civil and military helicopters; provision of helicopter-related
services; and•Airbus Defence and Space: is organised in four Programme Lines: Military Aircraft, Space Systems, Communications, Intelligence& Security (CIS), and Unmanned Aerial Systems (UAS). It designs, develops and engineers products, systems and services in thefield of defence and space for governments, institutions and commercial customers. In addition, the main joint ventures design,develop, deliver and support missile systems as well as space launchers and launch services.

“Other / HQ / Consolidation” comprises the holding function of Airbus, the Airbus Bank and other activities not allocable to thereportable segments, combined together with consolidation effects.

2.1.1.3

Significant Programme Developments, Restructuring and Related Financial
Consequences in 2015, 2016 and 2017

A380 programme. In 2015, Airbus Commercial Aircraft improved gross margin per aircraft. Despite lower A380 deliveries (27 aircraft in2015 compared to 30 aircraft in 2014), the programme achieved breakeven for the first time in 2015.
In 2016, Airbus Commercial Aircraft found an agreement with Emirates and Rolls Royce to shift six deliveries from 2017 into 2018 andfrom 2018 into 2019, which secures the delivery profile into 2019. 12 aircraft remains the 2018 target for deliveries. Fixed cost reduction
measures will be accelerated to minimise the impact on breakeven at a lower level of deliveries. A total of 28 A380s were delivered
during 2016.
In 2017, Airbus Commercial Aircraft delivered 15 A380 aircraft and plans to deliver 12 aircraft in 2018 and 8 aircraft in 2019. The
Emirates order in February 2018 provides increased visibility on the A380 programme for the years to come. At a baseline of 6deliveries per year, Airbus can produce the A380 in an industrial efficient way over the coming years. A reasonable industrial efficiency
can be maintained at a new baseline of 6 aircraft a year with an acceptable margin and cash dilution. No further details can be added at
this stage. As of 28 February 2018, Airbus had 331 orders for A380s, of which 222 have been delivered to 13 airlines. The A380 orderbook includes orders for 8 customers.
A350 XWB programme. In 2015, Airbus Commercial Aircraft delivered 14 A350 XWB aircraft. Despite the progress made, significant
challenges remained with the ramp-up acceleration.
In 2016, Airbus Commercial Aircraft delivered 49 A350 XWB aircraft, including to 7 new customers. To reflect expected lower revenues
escalation, increased learning curve costs and delivery phasing, Airbus Commercial Aircraft recorded a net charge of €385 million on
A350 XWB loss making contracts in the second quarter 2016.

AIRBUS REGISTRATION DOCUMENT 2017 -65

In 2017, Airbus Commercial Aircraft delivered 78 A350 XWB aircraft. New order intake, cancellations, delivery postponements and othercontractual agreements to the end of December 2017 have been reflected in the financial statements. The industrial ramp-up isprogressing and associated risks continue to be closely monitored in line with the schedule, aircraft performance and overall costenvelope, as per customer commitments. The level of outstanding work in the Final Assembly Line has been significantly reduced.
Despite the progress made, challenges remain with recurring cost convergence as the ramp-up continues. The A350 programme ispreparing to reach the targeted monthly production rate of 10 by the end of 2018.
A400M programme. Technical progress on the A400M programme resulted in the recognition of A400M-related revenues of€ 1.6 billion in 2015, € 1.7 billion in 2016 and € 1.9 billion in 2017.
In 2015, 11 A400M aircraft were delivered, resulting in 21 cumulative deliveries up to 31 December 2015. Management reviewed theprogramme evolution and estimated contract result driven to a large extent from the implications of the A400M accident in Seville in May
2015, as well as the impact of low inflation on the price revision formulae, 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 deemed necessary.
In 2016, 17 A400M aircraft were delivered, resulting in 38 cumultative deliveries up to 31 December 2016. Acceptance activities of one
additional aircraft were finalised at the end of December 2016, but transfer of title only took place on 1 January 2017 (corresponding
revenues were recognised in 2017). Industrial efficiency and military capabilities remained a challenge for the A400M programme andfurthermore, the EASA Airworthiness Directive, linked to the Propeller Gear Box (“PGB”) on the engine, and various PGB quality issues
strongly impacted the customer delivery programme. The first major development milestone of the mission capability roadmap definedwith customers earlier in 2016 was successfully completed in June with certification and delivery of “MSN 33”, the ninth aircraft for the
French customer, however achievement of contractual technical capabilities remained challenging. In the first half-year 2016,
management reviewed the programme evolution and estimated contract result incorporating the implications at this time of the revisedengine programme and its associated recovery plan, technical issues related to the aluminium alloy used for some parts within theaircraft, recurring cost convergence issues, an updated assumption of export orders during the launch contract phase and finally somedelays, escalation and cost overruns in the development programme. During the second half-year 2016, the programme encounteredfurther challenges to meet military capabilities and management reassessed the industrial cost of the programme, now including an
estimation of the commercial exposure. As a result of these reviews, Airbus Defence and Space recorded a charge of € 2,210 million in2016 (thereof € 1,026 million in the first half-year 2016). This represented the then current best management assessment.
19 A400M aircraft were delivered in 2017. In total, 57 aircraft have been delivered as of 31 December 2017.
In 2017, Airbus continued with development activities toward achieving the revised capability roadmap.
As a result of the 2016 detailed contract reviews, Airbus Defence and Space had recorded a charge of € 2,210 million in the fiscal year
2016. Given the order of magnitude of the cumulative programme loss, the Board of Directors mandated the management in February
2017 to re-engage with customers to cap the remaining exposure.
Airbus has signed a Declaration of Intent (DOI) with the A400M Launch Customer Nations (Germany, France, United Kingdom, Spain,
Turkey, Belgium, Luxemburg) defining the framework for achieving a mutually binding contract amendment later in the year. Airbus,
European defence agency OCCAR and the Customer Nations have agreed to work on a number of contractual elements including arevamped delivery plan as well as a roadmap for the development and completion of military capabilities for the A400M. The DOI,
finalised on 7 February 2018, represents an important step towards reaching a contractually binding agreement with OCCAR and theLaunch Customer Nations in 2018 to mitigate risks and to ensure the future of the programme. OCCAR is managing the A400M
programme on behalf of the seven Launch Customer Nations. This DOI provides a new baseline on which to evaluate the A400M
contract. With a clear roadmap in place, the remaining exposure going forward would be more limited.
A detailed review of the programme concluded in the fourth quarter of 2017 including an estimate of the financial impacts of the above
mentioned adaptations on schedule, capabilities and retrofit results in an update of the loss making contract provision of € 1,299 million
for the year 2017 (thereof € 1,149 million in the fourth quarter 2017). Airbus’ remaining exposure going forward is expected to be more
limited. Risks remain on development of technical capabilities and the associated costs, on securing sufficient export orders in time, andon cost reductions as per the revised baseline. Airbus intends to turn the DOI into a firm contract within 2018.
The A400M contractual SOC 1, SOC 1.5, SOC 2, SOC 2.5 and SOC 3 development milestones remain to be achieved. SOC 1 fell due
end October 2013, SOC 1.5 fell due end December 2014, SOC 2 end of December 2015 and SOC 2.5 end of October 2017. The
associated termination rights became exercisable by OCCAR on 1 November 2014, 1 January 2016 and 1 January 2017, respectively.
Management judges that it is highly unlikely that any of these termination rights will be exercised.
A320 programme. Joint European and US certification for the A320neo was received in the fourth quarter of 2015 with the first delivery
following in January 2016. Despite some schedule set-backs, the A320neo ramp-up preparation got underway with the focus on
maturity and service-readiness for early operations in line with customer expectations.
In 2016, 68 aircraft on the A320neo programme were delivered to 17 customers. Both engine suppliers committed to deliver in line withcustomer expectations. Challenges remained with the A320neo ramp-up and delivery profile. For the Pratt & Whitney engine,
challenges were to (i) meet the delivery commitments in line with agreed schedule; (ii) fix in-service maturity issues in line with Airbus
and customer expectations.
In 2017, a total of 181 A320neo Family aircraft were delivered, up from 68 during 2016. Supplier Pratt & Whitney introduced new engine
fixes in the fourth quarter which were certified. Unfortunately a new issue has arisen likely unrelated to the prior fixes, the impact ofwhich is under assessment with respect to 2018 deliveries. Engine supplier CFM International meanwhile experienced some maturity
issues in 2017 on some batches of the LEAP-1A engine. The A320neo ramp-up remains challenging and requires that the engine
suppliers deliver in line with commitments.

AIRBUS REGISTRATION DOCUMENT 2017 -66

A330 programme. In 2016, the A330neo development was ongoing.
In 2017, 67 A330 were delivered. On the A330neo, the first flight was completed in October 2017. Two test aircraft were available. The
program is on track to Type Certification. First delivery is targeted for summer 2018.
Airbus makes estimates and provides, across the programmes, for costs related to in-service technical issues which have been
identified and for which solutions have been defined, which reflects the latest facts and circumstances. Airbus is contractually liable forthe 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 beconsidered on a case by case basis.
Restructuring provisions.
In 2016, a net € 182 million provision related to restructuring measures was booked by Airbus.
A restructuring provision associated with the re-organisation of Airbus of € 160 million was recorded at year-end 2016 following thecommunication of the plan to the employees and the European Works Council in November 2016. The French social plan was agreed
between Airbus and the works council in June 2017. The German social plan was agreed between Airbus and the works councils in
September 2017 however the reconciliation of interest is still under discussion.
In Airbus Helicopters, the restructuring plan launched in 2016 was signed by the three representative trade unions and validated by theWork Administration Agency (DIRECCTE) in March 2017.

2.1.1.4

Current Trends

Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major
disruptions.
Airbus’ 2018 earnings and free cash flow guidance is based on a constant perimeter, before M&A: in 2018, Airbus Commercial Aircraft
expects to deliver around 800 commercial aircraft, which depends on engine manufacturers meeting commitments. Based on around800 deliveries, before M&A, Airbus expects a significant increase in EBIT Adjusted compared to 2017. Free Cash Flow is expected tobe similar to 2017 before M&A and customer financing.

AIRBUS REGISTRATION DOCUMENT 2017 -67

2.1.2Significant Accounting Considerations, Policies and Estimates

Airbus’ significant accounting considerations, policies and estimates are described in the Notes to the Consolidated Financial
Statements.

2.1.2.1

Scope of and Changes in Consolidation

For further information on the scope of and changes in consolidation as well as acquisitions and disposals of interests in business,please refer to the “Notes to the IFRS Consolidated Financial Statements — Note 2: Significant accounting policies” and “Note 6:
Acquisitions and disposals”.

2.1.2.2

Capitalised Development Costs

Pursuant to the application of IAS 38 “Intangible Assets”, Airbus assesses whether product-related development costs qualify forcapitalisation as internally generated intangible assets. Criteria for capitalisation are strictly applied. All research and development costs
not meeting the IAS 38 criteria are expensed as incurred in the consolidated income statement. Please refer to the “Notes to the IFRS
Consolidated Financial Statements — Note 2: Significant accounting policies — Research and development expenses andDevelopment costs” and “Note 17: Intangible assets”.

2.1.2.3

Accounting for Hedged Foreign Exchange Transactions in the Financial Statements

More than 75% of Airbus’ revenues are denominated in US dollars, whereas a substantialportion of its costs is incurred in euros and, toa smaller extent, in pounds sterling. Airbus uses hedging strategies to manage and minimise the impact of exchange rate fluctuations on
its profits, including foreign currency derivative contracts, interest rate and equity swaps and other non-derivative financial assets or
liabilities denominated in a foreign currency. For further information, see “— 2.1.7 Hedging Activities”, “Risk Factors — 1. Financial
Market Risks — Foreign Currency Exposure” and please refer to the “Notes to the IFRS Consolidated Financial Statements — Note 2:
Significant accounting policies” and “Note 35: Information about financial instruments”.

2.1.2.4

Foreign Currency Translation

For information on transactions in currencies other than the functional currency of Airbus and translation differences for other assets andliabilities of Airbus denominated in foreign currencies, please refer to the “Notes to the IFRS Consolidated Financial Statements —Note 2: Significant accounting policies — Transactions in foreign currency”.

Currency Translation Mismatch
Customer advances (and the corresponding revenues recorded when sales recognition occurs) are translated at the exchange rate
prevailing on the date they are received (historical rates of customer advances). US dollar-denominated costs are converted at theexchange rate prevailing on the date they are incurred (historical rates of US dollar-denominated costs). To the extent those historicalrates and the amounts received and paid differ, there is a foreign currency exchange impact (mismatch) on EBIT. Additionally, themagnitude of any such difference, and the corresponding impact on EBIT, is sensitive to variations in the number of deliveries and spot
rate (€/US$).

2.1.2.5

Accounting for Sales Financing Transactions in the Financial Statements

The accounting treatment of sales financing transactions varies based on the nature of the financing transaction and the resulting
exposure. Please refer to the “Notes to the IFRS Consolidated Financial Statements — Note 19: Other investments and other long-term
financial assets”, “Note 22: Provisions, contingent assets and contingent liabilities” and “Note 25: Sales financing transactions”.
For further information on the significance of sales financing transactions for Airbus, see “— 2.1.6.4 Sales Financing”.

2.1.2.6

Provisions for Loss Making Contracts

Loss making contract provisions are reviewed and reassessed regularly. However, future changes in the assumptions used by Airbus ora change in the underlying circumstances may lead to a revaluation of past loss making contract provisions and have a corresponding
positive or negative effect on the Company’s future financial performance. Please refer to the “Notes to the IFRS Consolidated Financial
Statements — Note 2: Significant accounting policies — Provision for loss making contracts” and “Note 22: Provisions, contingent
assets and contingent liabilities”.

AIRBUS REGISTRATION DOCUMENT 2017 -68

2.1.3

Performance Measures

2.1.3.1

DivisionsAirbus Commercial Aircraft
Set forth below is a summary of the measures for the activities of Airbus Commercial Aircraft for the past three years.

Year ended
31 December 2017(in €m)Year ended
31 December 2016

Year ended
31 December 2015

Order Intake (net)143,361

114,938

139,062

Order Book

950,354

1,010,200

952,450

Revenues

50,95849,23745,854

EBIT

3,428

1,543

2,287

in% of revenues

6.7%

3.1%

5.0%

Airbus Helicopters
Set forth below is a summary of the measures for the activities of Airbus Helicopters for the past three years.

Year ended
31 December 2017(in €m)Year ended
31 December 2016

Year ended
31 December 2015

Order Intake (net)

6,544

6,057

6,168

Order Book

11,201

11,26911,769

Revenues

6,450

6,652

6,786

EBIT

337

308

427

in% of revenues

5.2%

4.6%

6.3%

Airbus Defence and SpaceSet forth below is a summary of the measures for the activities of Airbus Defence and Space for the past three years.

Year ended
31 December 2017

Year ended
31 December 2016

Year ended
31 December 2015

Order Intake (net)

8,893

15,393

14,440Order Book

37,40741,49942,861

Revenues

10,804

11,85413,080(in €m)

EBIT

212

(93)

736

in% of revenues

2.0%(0.8)%

5.6%

2.1.3.2

Order Backlog

Year-end order backlog consists of contracts signed up to that date. Only firm orders are included in calculating order backlog – forcommercial aircraft, a firm order is defined as one for which Airbus receives a down payment on a definitive contract. Defence-relatedorders are included in the backlog upon signature of the related procurement contract (and the receipt, in most cases, of an advancepayment). Commitments under defence “umbrella” or “framework” agreements by governmental customers are not included in backlog
until Airbus is officially notified.
For commercial aircraft contracts, amounts of order backlog reflected in the table below are derived from catalogue prices, escalated tothe expected delivery date and, to the extent applicable, converted into euro (at the corresponding hedge rate for the hedged portion of
expected cash flows, and at the period-end spot rate for the non-hedged portion of expected cash flows). The amount of defencerelated order backlog is equal to the contract values of the corresponding programmes.

AIRBUS REGISTRATION DOCUMENT 2017 -69

CONSOLIDATED BACKLOG FOR THE YEARS ENDED 31 DECEMBER 2017, 2016 AND 2015(1)Year ended
31 December 2017

Year ended
31 December 2016

Year ended
31 December 2015

Amount in €bn

In percentage(2)Amount in €bn

In percentage(2)Amount in €bn

In percentage(2)Airbus Commercial
Aircraft(3)

950.4

95.1%

1,010.2

95.0%

952.4

94.6%

Airbus Helicopters

11.2

1.1%

11.3

1.1%

11.8

1.2%

Airbus Defence and Space

37.4

3.8%

41.5

3.9%

42.9

4.2%

Total Divisional backlog

999.0

100%

1,063.0100%

1,007.1

100%

Other / HQ / Consolidation

(2.2)

(2.6)

(1.2)

Total

996.8

1,060.4

1,005.9(1) Without options.
(2) Before “Other / HQ / Consolidation”.
(3) Based on catalogue prices for commercial aircraft activities.

2017 compared to 2016. The € -63.6 billion decrease in the order backlog from 2016, to € 996.8 billion in 2017, primarily reflects theweaker US dollar spot rate used for conversion of the non-hedged portion of the backlog into euro at year-end (€/US$ 1.20 as comparedto €/US$ 1.05 at the end of 2016) which had a negative impact on order backlog of approximately € -115 billion. Airbus’ strong orderintake in 2017 (€ 158 billion catalogue price) exceeded the reduction of the backlog from 2017 deliveries.
Airbus Commercial Aircraft’s backlog decreased by € -59.8 billion from 2016, to € 950.4 billion in 2017, primarily reflecting the above
mentioned negative currency translation effects from the weaker US dollar spot rate. A book-to-bill ratio of 1.5 (calculated using units of
new net orders, i.e. new net orders in units divided by deliveries in units), however, contributed positively. Order intake consisted of
1,109 net orders in 2017 (as compared to 731 in 2016), driven mainly by the A320 Family, which received 1,054 net firm orders (926A320neo and 128 A320ceo). Total order backlog at Airbus Commercial Aircraft amounted to 7,265 aircraft at the end of 2017(as compared to 6,874 aircraft at the end of 2016). This represents a record year-end level of backlog by units.
Airbus Helicopters’ backlog slightly decreased by € -0.1 billion from 2016, to € 11.2 billion in 2017, reflecting a book-to-bill ratio, by value
in euros, of around one with new net orders of € 6.5 billion. Airbus Helicopters received 335 net orders in 2017 (as compared to 353 in2016). Total order backlog amounted to 692 helicopters at the end of 2017 (as compared to 766 helicopters at the end of 2016).
Airbus Defence and Space’s backlog decreased by € -4.1 billion from 2016, to € 37.4 billion in 2017, reflecting a book-to-bill ratio of lessthan one with new net orders of € 8.9 billion. Defence and Space had a book-to-bill of ~0.8. Good momentum was seen in military
aircraft with the order intake including 22 light and medium transport aircraft, five A330 MRTT tankers and the Eurofighter contract with
Kuwait. Two all-electric telecommunication satellites were booked in the fourth quarter despite a soft market environment. Airbus
Defence and Space’s perimeter changes had a negative impact of € 1.9 billion on the order book and € 1.5 billion on order intake.
2016 compared to 2015. The € 54.5 billion increase in the order backlog from 2015, to € 1,060.4 billion, primarily reflects Airbus’ orderintake in 2016 (€ 134 billion catalogue price), which exceeded the reduction of the backlog from 2016 deliveries. Additionally, thestronger US dollar spot rate used for conversion of the non-hedged portion of the backlog into euro at year-end (€/US$ 1.05 ascompared to €/US$ 1.09 at the end of 2015) had a positive impact on order backlog of approximately € +31 billion.
Airbus Commercial Aircraft’s backlog increased by € 57.8 billion from 2015, to € 1,010.2 billion in 2016, primarily reflecting a book-to-billratio of more than one (calculated using units of new net orders). Order intake consisted of 731 net orders in 2016 (as compared to
1,080 in 2015), driven mainly by the A320 Family, which received 607 net firm orders (561 A320neo and 46 A320ceo). Total orderbacklog at Airbus Commercial Aircraft amounted to 6,874 aircraft at the end of 2016 (as compared to 6,831 aircraft at the end of 2015).
Airbus Helicopters’ backlog decreased by € -0.5 billion from 2015, to € 11.3 billion in 2016, reflecting a book-to-bill ratio of less than one
with new net orders of € 6.1 billion. Airbus Helicopters received 353 net orders in 2016 (as compared to 333 in 2015). Total orderbacklog amounted to 766 helicopters at the end of 2016 (as compared to 831 helicopters at the end of 2015).
Airbus Defence and Space’s backlog decreased by € -1.4 billion from 2015, to € 41.5 billion in 2016, reflecting a book-to-bill ratio of
more than one with new net orders of € 15.4 billion. The order intake is mainly driven by Military aircraft with 16 light and medium aircraft
ordered by Canada and Eurofighter sustainment and support contracts as well as in Space with telecom and earth navigation andscience.

The table below illustrates the proportion of civil and defence backlog at the end of each of the past three years.

Year ended
31 December 2017

Year ended
31 December 2016

Year ended
31 December 2015

Amount in €bn(1)In percentage

Amount in €bn(1)In percentage

Amount in €bn(1)In percentage

959.9

96%

1,020.6

96%

967.5

96%

Backlog:
Civil Sector
Defence Sector

36.9

4%

39.8

4%

38.4

4%

Total

996.8

100%

1,060.4

100%

1,005.9100%(1) Including “Other / HQ / Consolidation”.

AIRBUS REGISTRATION DOCUMENT 2017 -70

2.1.3.3

Use of EBIT Adjusted

Airbus uses an alternative performance measure EBIT Adjusted as a key indicator capturing the underlying business margin by
excluding material charges or profits caused by movements in provisions related to programmes, restructurings or foreign exchange
impacts as well as capital gains/losses from the disposal and acquisition of businesses.
Set forth below is a table reconciling Airbus’ EBIT with its EBIT Adjusted.

(in €m)Year ended
31 December 2017

Year ended
31 December 2016

Year ended
31 December 2015

EBIT

3,421

2,258

4,062

PDP mismatch / BS revaluation
A400M business update
A350XWB business update
Compliance
ASL creation phase 2
Defence Electronics net capital gain

7

930

635

1,299

2,210

290

0

385

0

117

0

0

0

(1,175)

0

(604)

0

0

Portfolio in Airbus Defence and Space andAirbus Commercial Aircraft

(7)

33

(90)

Other M&A

20

0

0

Restructuring / Transformation

0

182

(41)

Dassault Aviation disposal
EBIT Adjusted

2.1.3.4

0

(868)

(748)

4,253

3,955

4,108

Year ended
31 December 2017

Year ended
31 December 2016

Year ended
31 December 2015

3,554

2,811

2,766

337

350

427

872

1,002

1,051

4,763

4,163

4,244

EBIT Adjusted by Division(in €m)Airbus Commercial Aircraft
Airbus Helicopters
Airbus Defence and Space
Total Divisional EBIT Adjusted
Other / HQ / Consolidation

(510)

(208)

(136)

Total

4,253

3,955

4,108

Year ended
31 December 2017

Year ended
31 December 2016

Year ended
31 December 2015

3,428

1,543

2,287
427

2.1.3.5

EBIT by Division(in €m)Airbus Commercial Aircraft
Airbus Helicopters

337

308

Airbus Defence and Space

212

(93)

736

Total Divisional EBIT

3,977

1,758

3,450

Other / HQ / Consolidation(556)

500(2)

612(1)

Total

3,421

2,258

4,062

(1) “Other / HQ / Consolidation” comprises results from headquarters, which mainly consist of the “share of profit from investments in associates” from
Airbus’ investment in Dassault Aviation.
(2) “Other / HQ / Consolidation” comprises the capital gain from the sale of Dassault Aviation shares and the revaluation at fair value of the remaining
investment in Dassault Aviation.

2017 compared to 2016. 2017 financials reflect the perimeter changes in Airbus Defence and Space and Helicopters resulting in
reduction in revenues of around € 2 billion and related EBIT impact.
Airbus’ consolidated EBIT increased by 51.5%, from € 2.3 billion for 2016 to € 3.4 billion for 2017.
Airbus Commercial Aircraft’s EBIT increased from € 1.5 billion for 2016 to € 3.4 billion for 2017 reflecting the strong delivery performance
supported by improved foreign exchange rates. Good progress was made in reducing the A350 losses in line with expectations.
Airbus Helicopters’ EBIT increased from € 308 million for 2016 to € 337 million for 2017, reflecting transformation efforts which haveglobally supported the Division’s competitiveness in a challenging market and lower impact from past Super Puma grounding. This was
AIRBUS REGISTRATION DOCUMENT 2017 -71

reduced by lower deliveries, an unfavourable mix and lower commercial flight hours in services and perimeter change, following thedivestment of the maintenance, repair and overhaul business Vector Aerospace in November.
Airbus Defence and Space’s EBIT increased from € -93 million for 2016 to € 212 million for 2017 reflecting a stable core businessperformance and solid contributions from the MBDA and ArianeGroup Joint Ventures. It was supported by the net capital gain of € 604
million from the divestment of the defence electronics business and some further small disposal impacts. A net charge of € 1,299 million
was recorded related to the A400M programme for the period ended 31 December 2017 (€ 2,210 million for the period ended 31
December 2016). Airbus Defence and Space’s EBIT in 2017 also included a negative impact of € 91 million related to compliance,
comprising an administrative penalty notice connected to the termination of the Eurofighter Austria investigation by the Munich Public
Prosecutor (See “— 2.1.1.3 Significant Programme Developments, Restructuring and Related Financial Consequences in 2015, 2016
and 2017”).
2016 compared to 2015. 2016 financials reflect the portfolio reshaping in Airbus Defence and Space resulting in reduction in revenuesof about € 1 billion and related EBIT impact.
Airbus’ consolidated EBIT decreased by 44.4%, from € 4.1 billion for 2015 to € 2.3 billion for 2016.
Airbus Commercial Aircraft’s EBIT decreased from € 2.3 billion for 2015 to € 1.5 billion for 2016. A solid operational performance driven
by a higher A320 volume and R&D reduction was weighed down by the lower A330 production rate, transition pricing, ramp-up costs
and a negative revaluation impact from foreign exchange linked to the dollar pre-delivery mismatch and balance sheet revaluation in theamount of € -902 million. Additionally, it was affected by a € 385 million net charge on the A350 XWB programme.
Airbus Helicopters’ EBIT decreased from € 427 million for 2015 to € 308 million for 2016, reflecting an unfavourable mix and lower
commercial flight hours in services as well as the H225 accident and some campaign costs. However, the underlying performancecontinued to be supported by ongoing transformation measures and strong efforts to adapt to market challenges.
Airbus Defence and Space’s EBIT decreased from € 736 million for 2015 to € -93 million for 2016. A good operational performance
partially mitigated the perimeter change effects from portfolio reshaping. In addition, a net charge of € 2,210 million was recorded related
to the A400M programme for the period ended 31 December 2016 (€ 290 million for the period ended 31 December 2015). Airbus
Defence and Space’s EBIT in 2016 also included a net gain of € 1,175 million from the completion of the second phase of the creationof the ASL joint venture, an adjustment of the provision for restructuring generating a positive impact of € 20 million and some further
small disposal impacts.
The EBIT of Other / Headquarters / Consolidation decreased by 18.3% from € 612 million for 2015 to € 500 million for 2016. 2016
included the capital gain from the sale of Dassault Aviation shares and the revaluation at fair value of the remaining investment in
Dassault Aviation from ongoing divestment started in 2015. It also included the restructuring provisions for € 160 million recorded at
year-end 2016 following the announcement in September 2016 of the merger of the Group structure with its largest division Airbus
Commercial Aircraft to increase future competitiveness.
Foreign currency impact on EBIT. More than 75% of Airbus’ revenues are denominated in US dollars, whereas a substantial portionof its costs is incurred in euros and, to a lesser extent, pounds sterling. Given the long-term nature of its business cycles (evidenced byits multi-year backlog), Airbus hedges a significant portion of its net foreign exchange exposure to mitigate the impact of exchange rate
fluctuations on its EBIT. Please refer to the “Notes to the IFRS Consolidated Financial Statements — Note 35: Information about
financial instruments” and see “— Risk Factors — 1. Financial Market Risks — Foreign Currency Exposure”. In addition to the impactthat hedging activities have on Airbus’ EBIT, the latter is also affected by the impact of revaluation of certain assets and liabilities at theclosing rate and the impact of natural hedging.
During 2017, cash flow hedges covering approximately US$ 25.3 billion of Airbus’ US dollar-denominated revenues matured. In 2017,
the compounded exchange rate at which hedged US dollar-denominated revenues were accounted for was €/US$ 1.29, as compared to€/US$ 1.32 in 2016. See “— 2.1.2.4 Foreign Currency Translation”.
During 2016, cash flow hedges covering approximately US$ 23.5 billion of Airbus’ US dollar-denominated revenues matured excluding
US$ 1.5 billion of new hedges entered into to address intra-year shifts in Net Exposure linked to delivery phasing. In 2016, thecompounded exchange rate at which hedged US dollar-denominated revenues were accounted for was €/US$ 1.32, as compared to€/US$ 1.34 in 2015.

AIRBUS REGISTRATION DOCUMENT 2017 -72

2.1.4

Results of Operations

Set forth below is a summary of Airbus’ Consolidated Income Statements (IFRS) for the past three years.

Year ended
31 December 2017

Year ended
31 December 2016

Year ended
31 December 2015

Revenues

66,767

66,58164,450

Cost of sales(59,160)(61,317)(55,599)

Gross margin

7,607

5,264

8,851

Selling and administrative expenses(2,439)(2,723)(2,651)

Research and development expenses(in €m, except for earnings per share)(2,807)(2,970)(3,460)

Other income

981

2,689

474

Other expenses

(336)

(254)

(222)

Share of profit from investments accounted for underthe equity method and other income from investments

415

252

1,070

Profit before finance costs and income taxes

3,421

2,258

4,062

Interest result

(328)

(275)

(368)

Other financial result

1,477

(692)

(319)

Income taxes(1,693)

(291)

(677)

Profit for the period

2,877

1,000

2,698

2,873

995

2,696

Attributable to:Equity owners of the parent (Net Income)Non-controlling interests

4

5

2

Earnings per share (basic) (in €)

3.71

1.29

3.43

Earnings per share (diluted) (in €)

3.70

1.29

3.42

Set forth below are year-to-year comparisons of results of operations, based upon Airbus’ Consolidated Income Statements.

2.1.4.1

Consolidated Revenues

Set forth below is a breakdown of Airbus’ consolidated revenues by Division for the past three years.

(in €m)Airbus Commercial AircraftYear ended
31 December 2017

Year ended
31 December 2016

Year ended
31 December 2015

50,95849,23745,854

Airbus Helicopters

6,450

6,652

6,786

Airbus Defence and Space

10,804

11,85413,080Total Divisional revenues

68,212

67,74365,720

Other / HQ / Consolidation(1,445)(1,162)(1,270)Total

66,767

66,58164,450For 2017, consolidated revenues were stable at € 66.8 billion, an 0.3% increase from € 66.6 billion in 2016, as higher aircraft deliveriesat Airbus Commercial Aircraft were offset by the portfolio reshaping in Airbus Defence and Space and in Airbus Helicopters resulting in
reduction of revenues of around € 2 billion.
For 2016, consolidated revenues increased by 3.3%, from € 64.5 billion for 2015 to € 66.6 billion for 2016. The increase was primarily
due to higher revenues at Airbus Commercial Aircraft.

AIRBUS REGISTRATION DOCUMENT 2017 -73

Airbus Commercial Aircraft
Set forth below is a breakdown of deliveries of commercial aircraft by product type for the past three years.

Year ended
31 December 2017

Year ended
31 December 2016

Year ended
31 December 2015

A320 Family

558

545

491

A330

67

66

103

A350 XWB

78

49

14

A380

15

28

27

Total

718

688

635

Number of aircraft

Airbus Commercial Aircraft’s consolidated revenues increased by 3.5%, from € 49.2 billion for 2016 to € 51.0 billion for 2017. Thiswas due to record deliveries of 718 aircraft (compared to 688 deliveries in 2016) including 78 A350 XWBs and a favourable foreignexchange impact.
Airbus Commercial Aircraft’s consolidated revenues increased by 7.4%, from € 45.9 billion for 2015 to € 49.2 billion for 2016. Thiswas due to higher deliveries of 688 aircraft (compared to 635 deliveries in 2015) including 49 A350 XWBs and the strengthening
US dollar.

Airbus Helicopters
Set forth below is a breakdown of deliveries of helicopters by product type for the past three years.

Year ended
31 December 2017

Year ended
31 December 2016

Year ended
31 December 2015

Light

166

177

178

Medium

178

165

124

Heavy

48

57

77

of which NH90

40

38

35

Number of aircraft

Tiger

17

19

16

Total

409

418

395

Consolidated revenues of Airbus Helicopters decreased by 3.0%, from € 6.7 billion for 2016 to € 6.5 billion in 2017 reflecting lower
deliveries of 409 units and lower commercial flight hours in services impacted by Super Puma grounding. The number of Heavy
helicopters delivered continued to decrease in 2017, reflecting the soft Civil & Parapublic market, particularly in Oil & Gas. The disposalof Vector Aerospace had a negative perimeter change impact of around € 0.1 billion.
Consolidated revenues of Airbus Helicopters decreased by 2.0%, from € 6.8 billion for 2015 to € 6.7 billion in 2016, mainly reflecting an
unfavourable mix and lower commercial flight hours in services.

Airbus Defence and SpaceSet forth below is a breakdown of deliveries of Airbus Defence and Space by product type for the past three years.

Year ended
31 December 2017

Year ended
31 December 2016

Year ended
31 December 2015

A400M

19

17

11

A330 MRTT (Tanker)

1

2

4

Light & Medium aircraft

7

14

19

Number of aircraft

Telecom satellites

4

1

5

Total

31

34

39

Airbus Defence and Space’s consolidated revenues decreased by 8.9% from € 11.9 billion for 2016 to € 10.8 billion in 2017,reflecting the Division’s perimeter changes of around € 1.7 billion but were 7% higher on a comparable basis driven mainly by military
aircraft. The lower number of Light & Medium aircraft delivered in 2017 is a function of lower order intake in recent years.
Airbus Defence and Space’s consolidated revenues decreased by 9.4% from € 13.1 billion for 2015 to € 11.9 billion in 2016,reflecting a negative impact from portfolio reshaping of about € 1 billion but were broadly stable on a comparable basis.

AIRBUS REGISTRATION DOCUMENT 2017 -74

2.1.4.2

Consolidated Cost of Sales

Consolidated cost of sales decreased by 3.5% from € 61.3 billion for 2016 to € 59.2 billion for 2017. The decrease was primarily due to alower net charge related to the A400M programme in the amount of € 1,299 million (in 2016: € 2,210 million) and the perimeter changes
at Airbus Defence & Space. In 2016 a charge of € 385 million was booked for the A350 XWB programme (in 2017: € 0 million).
Consolidated cost of sales increased by 10.3% from € 55.6 billion for 2015 to € 61.3 billion for 2016. The increase was primarily due tobusiness growth at Airbus Commercial Aircraft and negative foreign exchange revaluation impacts from PDP/BS revaluation. The
charge related to the A400M programme in the amount of € 2,210 million (in 2015: € 290 million) and to the A350 XWB programme in
the amount of € 385 million (in 2015: € 0 million).

2.1.4.3

Consolidated Selling and Administrative Expenses

Consolidated selling and administrative expenses decreased by 10.4%, from € 2.7 billion for 2016 to € 2.4 billion for 2017.
Consolidated selling and administrative expenses were broadly stable at € 2.7 billion in 2016 and 2015.

2.1.4.4

Consolidated Research and Development Expenses

Consolidated research and development expenses decreased by 5.5%, from € 3.0 billion for 2016 to € 2.8 billion for 2017 primarilyreflecting a reduction of R&D activities on the A350 XWB programme at Airbus Commercial Aircraft. In addition, an amount of€ 219 million of development costs has been capitalised, mainly related to the A330neo and H160 programmes. See “— 2.1.2.2
Capitalised development costs”.
Consolidated research and development expenses decreased by 14.2%, from € 3.5 billion for 2015 to € 3.0 billion for 2016 primarilyreflecting a reduction of R&D activities on the A350 XWB programme at Airbus Commercial Aircraft as committed. In addition, anamount of € 311 million of development costs has been capitalised, mainly related to the A350-1000, FSTA and H160 programmes.

2.1.4.5

Consolidated Other Income and Other Expenses

Consolidated other income and other expenses include gains and losses on disposals of investments, of fixed assets and income
from rental properties.
For 2017, other income and other expenses was €+645 million net as compared to € +2,435 million net for 2016. In 2017, it mainly
includes the capital gain of € 604 million from the disposal of the defence electronics business.
For 2016, other income and other expenses was €+2,435 million net as compared to € +252 million net for 2015. The net increase isdue mainly to the capital gain of € 1,175 million following the completion of the creation of the ASL joint venture, the capital gain from thesale of Dassault Aviation shares of € 528 million and the revaluation at fair value of the remaining investment in Dassault Aviation of€ 340 million and the capital gain of € 146 million on the disposal of the business communications entities.

2.1.4.6

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

Consolidated share of profit from investments accounted for under the equity method and other income from investments principally
includes results from companies accounted for under the equity method and the results attributable to non-consolidated
investments.
For 2017, Airbus recorded € 415 million in consolidated share of profit from investments accounted for under the equity method andother income from investments as compared to € 252 million for 2016. Please refer to the “Notes to the IFRS Consolidated Financial
Statements — Note 7: Investments Accounted for under the Equity Method” and “Note 12: Share of Profit from Investments
Accounted for under the Equity Method and Other Income from Investments”.
For 2016, Airbus recorded € 252 million in consolidated share of profit from investments accounted for under the equity method andother income from investments as compared to € 1,070 million for 2015. It also includes Airbus’ share in ASL’s results. In 2015, it
included the net gain from the partial sale of Dassault Aviation shares.

2.1.4.7 Consolidated Interest Result
Consolidated interest result reflects the net of interest income and expense arising from financial assets and liabilities, includinginterest expense on refundable advances provided by European governments to finance R&D activities.
For 2017, Airbus recorded a consolidated net interest expense of € -328 million, as compared to € -275 million for 2016. The
decrease in interest result was primarily due to higher interest expense recorded on European government refundable advances.
For 2016, Airbus recorded a consolidated net interest expense of € -275 million, as compared to € -368 million for 2015. The
improvement in interest result is primarily due to lower interest expense recorded on European government refundable advances.

AIRBUS REGISTRATION DOCUMENT 2017 -75

2.1.4.8

Consolidated Other Financial Result

This line item includes, among others, the impact from the revaluation of financial instruments, the effect of foreign exchange
valuation of monetary items and the unwinding of discounted provisions. Please refer to the “Notes to the IFRS Consolidated
Financial Statements — Note 2: Significant Accounting Policies” and “Note 14: Total Finance Costs”.
Consolidated other financial result increased from € -692 million for 2016 to € 1,477 million for 2017. This is mainly related to a
positive impact from both foreign exchange valuation of monetary items of € +439 million and the revaluation of financial instrumentsof € +743 million. In addition, it included the impact of the decrease in the European Governments refundable advances primarily
related to the A380 programme. Please refer to the “Notes to the IFRS Consolidated Financial Statements — Note 23: Other
Financial Assets and Other Financial Liabilities”.
Consolidated other financial result decreased from € -319 million for 2015 to € -692 million for 2016 reflecting a € -373 million
negative change from revaluation of financial instruments together with a deterioration of the foreign exchange translation ofmonetary items.

2.1.4.9

Consolidated Income Taxes

For 2017, income tax expense was € -1,693 million as compared to € -291 million for 2016. The increase was primarily due to the higher
income before tax recorded in 2017 (€ 4,570 million) as compared to 2016 (€ 1,291 million). The effective tax rate was 37%. It was
mainly impacted by non-realised tax losses in the period leading to additional deferred tax asset impairment. It also included an
additional income tax charge related to the French corporate tax surcharge and the reduction in deferred tax asset due to the income
tax rate decrease in the US, both enacted end of 2017. This was partially offset by the disposal of the defence electronics business,
which is taxed at a reduced rate. Without these impacts, the effective tax rate would be approximately 26%. Please refer to the “Notes
to the IFRS Consolidated Financial Statements — Note 15: Income Tax”.
For 2016, income tax expense was € -291 million as compared to € -677 million for 2015. The decrease was primarily due to thelower income before tax recorded in 2016 (€ 1,291 million) as compared to 2015 (€ 3,375 million). The effective tax rate was 23% in
2016. The effective tax rate was affected by the sale of shares of Dassault Aviation and the creation of ASL both subject to specifictax treatment. These effects were partially offset by additional income tax charges including the planned reduction of the income tax
rate in France from 34.43% to 28.92% enacted in December 2016.

2.1.4.10

Consolidated Non-Controlling Interests

For 2017, consolidated profit for the period attributable to non-controlling interests was € 4 million, as compared to € 5 million for 2016.

2.1.4.11

Consolidated Profit for the Period Attributable to Equity Owners of the Parent (Net
Income)As a result of the factors discussed above, Airbus recorded consolidated net income of € 2,873 million for 2017, as compared to€ 995 million for 2016.

2.1.4.12

Earnings per Share

Basic earnings were € 3.71 per share in 2017, as compared to € 1.29 per share in 2016. The number of issued shares as of
31 December 2017 was 774,556,062. The denominator used to calculate earnings per share was 773,772,702 shares (in 2016:
773,798,837), reflecting the weighted average number of shares outstanding during the year. In 2015, the Company reported basic
earnings of € 3.43 per share, based on a denominator of 785,621,099, shares. For further details, please refer to the “Notes to the
IFRS Consolidated Financial Statements — Note 32: Total Equity” and “Note 16: Earnings per Share”.
Diluted earnings were € 3.70 per share in 2017, as compared to € 1.29 per share in 2016. The denominator used to calculate diluted
earnings per share was 779,301,228 (in 2016: 779,109,634), reflecting the weighted average number of shares outstanding during
the year, adjusted to assume the conversion of all potential ordinary shares. In 2015, the Company reported diluted earnings of€ 3.42 per share, based on a denominator of 788,491,929 shares.

AIRBUS REGISTRATION DOCUMENT 2017 -76

2.1.5

Changes in Consolidated Total Equity(Including Non-Controlling Interests)

The following table sets forth a summary of the changes in consolidated total equity for the period 1 January 2017 through 31 December
2017.
(in €m)Balance as at 31 December 2016

3,652

Profit for the period

2,877

Other comprehensive income

7,773

Thereof foreign currency translation adjustments(539)

Cash distribution to shareholders / Dividends paid to non-controlling interests(1,046)

Capital increase83

Equity transactions (IAS 27)(25)

Change in treasury shares

1

Share-based payment (IFRS 2)

36

Balance as at 31 December 201713,351

Please refer to the “Airbus SE IFRS Consolidated Financial Statements — IFRS Consolidated Statements of Changes in Equity for theyears ended 31 December 2017 and 2016” and to the “Notes to the IFRS Consolidated Financial Statements — Note 32: Total equity”.
Set forth below is a discussion on the calculation of accumulated other comprehensive income (“AOCI”) and the related impact on
consolidated total equity.

2.1.5.1

Cash Flow Hedge Related Impact on AOCI

As of 31 December 2017, the notional amount of Airbus’ portfolio of outstanding cash flow hedges amounted to US$ 88.7 billion, hedged
against the euro and the pound sterling. The year-end mark to market valuation of this portfolio required under IAS 39 resulted in apositive pre-tax AOCI valuation change of € 10.6 billion as of 31 December 2017 compared to 31 December 2016, based on a closing
rate of €/US$ 1.20 as compared to a negative pre-tax AOCI valuation change of € -0.3 billion as of 31 December 2016 compared to 31
December 2015, based on a closing rate of €/US$ 1.05. For further information on the measurement of the fair values of financial
instruments, please refer to the “Notes to the IFRS Consolidated Financial Statements — Note 35: Information about financial
instruments”.
Positive pre-tax mark to market values of cash flow hedges are included in other financial assets, while negative pre-tax mark to market
values of cash flow hedges are included in other financial liabilities. Year-to-year changes in the mark to market value of effective cash
flow hedges are recognised as adjustments to AOCI. These adjustments to AOCI are net of corresponding changes to deferred tax
assets (for cash flow hedges with negative mark to market valuations) and deferred tax liabilities (for cash flow hedges with positive
mark to market valuations). Set out below is a graphic presentation of cash flow hedge related movements in AOCI over the past three
years (in €m).
Note: The mark to market of the backlog is not reflected in the accounts whereas the mark to market of the hedge book is reflected in
AOCI.

CASH FLOW HEDGE RELATED MOVEMENTS IN AOCI IN €M (BASED ON YEAR-END EXCHANGE RATES)AIRBUS REGISTRATION DOCUMENT 2017 -77

As a result of the positive change in the fair market valuation of the cash flow hedge portfolio in 2017, AOCI amounted to a net asset of€ +0.8 billion for 2017, as compared to a net liability of € -9.8 billion for 2016. The corresponding € -2.8 billion tax effect led to a net
deferred tax liability of € -0.2 billion as of 31 December 2017 as compared to a net deferred tax asset of € 2.6 billion as of 31 December
2016.
For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements — Note 35.5: Derivative Financial
Instruments and Hedge Accounting Disclosure”.

2.1.5.2

Currency Translation Adjustment Impact on AOCIThe € -539 million currency translation adjustment related impact on AOCI in 2017 mainly reflects the effect of the variations of the US
dollar and the pound sterling.

2.1.6

Liquidity and Capital Resources

Airbus’ objective is to generate sufficient operating cash flow in order to invest in its growth and future expansion, honour theCompany’s dividend policy and maintain financial flexibility while retaining its credit rating and competitive access to capital markets.
Airbus defines its consolidated net cash position as the sum of (i) cash and cash equivalents and (ii) securities, minus (iii) financing
liabilities (all as recorded in the Consolidated Statements of Financial Position). Net cash position is an alternative performancemeasure and an indicator that allows the Company to measure its ability to generate sufficient liquidity to invest in its growth and future
expansion, honour its dividend policy and maintain financial flexibility. The net cash position as of 31 December 2017 was € 13.4 billion(€ 11.1 billion as of 31 December 2016).
The liquidity is further supported by a € 3.0 billion syndicated back-up facility, undrawn as of 31 December 2017 with no financial
covenants, as well as a euro medium term note programme and commercial paper programme. See “— 2.1.6.3 Consolidated Financing
Liabilities” and please refer to the “Notes to the IFRS Consolidated Financial Statements — Note 34.3: Net cash — Financing
Liabilities”. The factors affecting Airbus’ cash position, and consequently its liquidity risk, are discussed below.
For information on Airbus SE’s credit ratings, please refer to the “Notes to the IFRS Consolidated Financial Statements — Note 33:
Capital Management” and see “— 2.1.6.1: Cash Flows”.

2.1.6.1

Cash Flows

Airbus generally finances its manufacturing activities and product development programmes, and in particular the development of newcommercial aircraft, through a combination of flows generated by operating activities, customer advances, risk-sharing partnerships with
subcontractors and European government refundable advances. In addition, Airbus’ military activities benefit from government-financed
research and development contracts. If necessary, the Company may raise funds in the capital markets.
The following table sets forth the variation of Airbus’ consolidated net cash position over the periods indicated.
(in €m)

2017

2016

2015

Consolidated net cash position at 1 January

11,113

10,003

9,092

Gross cash flow from operations(1)

4,451

3,565

4,614

266

346

(723)

thereof customer financing

(100)

(252)

(150)

Cash used for investing activities(3)

(982)

(730)

(1,066)

thereof industrial capital expenditures(2,558)(3,060)(2,924)

3,735

3,181

2,825

886

2,025

1,650
1,175

Changes in other operating assets and liabilities(working capital)(2)Free Cash Flow

(4)

thereof M&A transactions
Free Cash Flow before M&A

(5)

2,849

1,156

Cash flow from customer financing (net)

(100)

(252)

(150)

Free Cash Flow before customer financing

3,835

3,433

2,975

Free Cash Flow before M&A and customer financing

2,949

1,408

1,325

Cash distribution to shareholders / Non-controlling interests(1,046)(1,012)(948)

Contribution to plan assets of pension schemes

(458)

(290)

(217)

Changes in capital and non-controlling interests

83

60

195

Share buyback / Change in treasury shares

0

(736)

(264)

OthersConsolidated net cash position as of 31 December

(36)

(93)

(680)

13,391

11,113

10,003(1) Represents cash provided by operating activities, excluding (i) changes in other operating assets and liabilities (working capital), (ii) contribution to plan
assets of pension schemes and (iii) realised foreign exchange results on Treasury swaps (€ -74 million in 2015; € -151 million in 2016; € 185 million in
AIRBUS REGISTRATION DOCUMENT 2017 -78

2017). It is an alternative performance measure and an indicator used to measure its operating cash performance before changes in working capital.
(2) Excluding reclassification of certain trade liabilities.
(3) Does not reflect change of securities (net investment of € -2,361 million for 2015; net disposal of € 337 million for 2016; net investment of € -1,233
million for 2017), which are classified as cash and not as investments solely for the purposes of this net cash presentation. Excluding bank activities.
(4) Does not reflect change of securities, change in cash from changes in consolidation, contribution to plan assets of pension schemes and realised
foreign exchange results on Treasury swaps. Excluding bank activities. Free Cash Flow is an alternative performance measure and indicator thatreflects the amount of cash flow generated from operations after cash used in investing activities.
(5) Free Cash Flow before M&A refers to Free Cash Flow adjusted for net proceeds from disposals and acquisitions. It is an alternative performancemeasure and indicator that reflects Free Cash Flow excluding those cash flows from the disposal and acquisition of businesses.

The net cash position as of 31 December 2017 was € 13.4 billion, a 20.5% increase from 31 December 2016. The increase primarilyreflects the gross cash flow from operations (€ 4.5 billion), partially offset by the cash distribution to shareholders / non-controllinginterests (€ -1.0 billion) and the cash used for investing activities (€ -1.0 billion).

Gross Cash Flow from Operations
Gross cash flow from operations is an alternative performance measure and an indicator used by Airbus to measure its operating cash
performance before changes in working capital. Gross cash flow from operations increased by 24.9% to € 4.5 billion for 2017, whichreflects the strong EBIT Adjusted.

Changes in Other Operating Assets and Liabilities
Changes in other operating assets and liabilities is comprised of inventories, trade receivables, other assets and prepaid expenses
netted against trade liabilities, other liabilities (including customer advances) and deferred income. They resulted in a € +0.3 billion
positive impact on the net cash position for 2017, unchanged from a positive impact of € +0.3 billion for 2016.
In 2017, the main net contributors to the positive working capital variation were an increase in trade liabilities (€ 1.4 billion) due to morefavourable payment terms to suppliers and the pre-delivery payment from customers (€ 1.3 billion). This was mainly offset by the change
in inventory (€ -2.6 billion) reflecting increased work in progress mainly associated with the A350 XWB and the A320neo at Airbus
Commercial Aircraft.
European government refundable advances. As of 31 December 2017, total European government refundable advances liabilities,
recorded on the statement of financial position in the line items “non-current other financial liabilities” and “current other financial
liabilities” due to their specific nature, amounted to € 5.9 billion, including accrued interest.
European government refundable advances (net of reimbursements) decreased in 2017, primarily related to the update of the valuationof refundable advances from European Governments on the A380 programme following a review of the commercial assumptions as wellas due to repayments made under the A350 XWB and the A380 programmes. Please refer to the “Notes to the IFRS Consolidated
Financial Statements — Note 23: Other Financial Assets and Other Financial Liabilities”.

Cash Used for Investing Activities
Management categorises cash used for investing activities into three components: (i) industrial capital expenditures, (ii) M&A
transactions and (iii) others.
Industrial capital expenditures. Industrial capital expenditures (investments in property, plant and equipment and intangible assets)
amounted to € -2.6 billion for 2017 as compared to € -3.1 billion for 2016 and € -2.9 billion for 2015. Capital expenditures in 2017 related
to programmes at Airbus Commercial Aircraft of € -1.9 billion (among others for the ramp-up phase of A350 XWB and A320neo Family,
for Beluga XL and for the A330neo) and additional projects in the Divisions of € -0.7 billion. Capital expenditures include product-related
development costs that are capitalised in accordance with IAS 38. See “— 2.1.2.2 Capitalised development costs”.
M&A transactions. In 2017, the € 0.9 billion figure includes net proceeds of around € 600 million from the defence electronics disposal
and around € 400 million from the Vector Aerospace sale. Please refer to the “Notes to the IFRS Consolidated Financial Statements —Note 6: Acquisitions and Disposals”.
In 2016, the € 2.0 billion figure principally reflects the sale of Dassault Aviation shares and the finalisation of the creation of ASL in thefirst half of 2016.

Free Cash Flow
Airbus defines Free Cash Flow as the sum of (i) cash provided by operating activities and (ii) cash used for investing activities, minus(iii) change of securities, (iv) contribution to plan assets of pension schemes, (v) realised foreign exchange results on Treasury swapsand (vi) Airbus bank activities. It is an alternative performance measure and key indicator that is important in order to measure theamount of cash flow generated from operations after cash used in investing activities. As a result of the factors discussed above, Free
Cash Flow amounted to € 3.7 billion for 2017 as compared to € 3.2 billion for 2016 and € 2.8 billion for 2015. Free Cash Flow before
customer financing was € 3.8 billion for 2017 as compared to € 3.4 billion for 2016 and € 3.0 billion for 2015.

AIRBUS REGISTRATION DOCUMENT 2017 -79Free Cash Flow before M&AFree Cash Flow before mergers and acquisitions refers to Free Cash Flow adjusted for net proceeds from disposals and acquisitions. It
is an alternative performance measure and key indicator that reflects Free Cash Flow excluding those cash flows resulting fromacquisitions and disposals of businesses.

Free Cash Flow before M&A and Customer Financing
Free Cash Flow before M&A and customer financing refers to Free Cash Flow before mergers and acquisitions adjusted for cash flow
related to aircraft financing activities. It is an alternative performance measure and indicator that may be used from time to time by
Airbus in its financial guidance, especially when there is higher uncertainty around customer financing activities, such as during thesuspension of ECA financing support.

Change in Treasury Shares
In 2017, there was no change in treasury shares. Change in treasury shares for 2016 amounted to € -0.7 billion, which was mostly
related to the share buyback. In 2015 the Company undertook a share buyback for a maximum amount of € 1 billion. The total
cumulative amount of shares bought back and cancelled in 2015 and 2016 under the programme was 17,016,374 shares. The buyback
programme took place between 2 November 2015 and 30 June 2016. All shares purchased under the share buyback programme werecancelled. As of 31 December 2017, the Company held 129,525 treasury shares.

Contribution to Plan Assets of Pension Schemes
The cash outflows of € -0.5 billion, € -0.3 billion and € -0.2 billion in 2017, 2016 and 2015, respectively, primarily relate to a contribution
to the Contractual Trust Arrangement (CTA) for allocating and generating pension plan assets in accordance with IAS 19, as well as toplan assets in the UK and to German benefit funds. Please refer to the “Notes to the IFRS Consolidated Financial Statements —Note 29.1: Post-employment Benefits — Provisions for Retirement Plans”.

OthersIn 2017, the negative amount of € -36 million mainly resulted from the bank activities, partly compensated by the realised result fromTreasury swaps and changes in consolidated financing liabilities.
In 2016, the negative amount of € -93 million mainly resulted from the bank activities, partly compensated by changes in
consolidated financing liabilities and changes in securities.

2.1.6.2

Consolidated Cash and Cash Equivalents and Securities

The cash and cash equivalents and securities portfolio of Airbus is invested mainly in non-speculative financial instruments, mostly
highly liquid, such as certificates of deposit, overnight deposits, commercial paper, other money market instruments and bonds. Pleaserefer to the “Notes to the IFRS Consolidated Financial Statements — Note 35.1: Information about Financial Instruments — Financial
Risk Management”.
Airbus has a partially automated cross-border and domestic cash pooling system in all countries with major group presence andwhenever country regulations allow such practice (among others this includes mainly France, Germany, Spain, the Netherlands,
the UK and the US). The cash pooling system enhances Management’s ability to assess reliably and instantaneously the cash
position of each subsidiary within Airbus and enables Management to allocate cash optimally within Airbus depending upon
shifting short-term needs.

2.1.6.3 Consolidated Financing Liabilities
The outstanding balance of Airbus’ consolidated financing liabilities increased from € 10.5 billion as of 31 December 2016 to€ 11.2 billion as of 31 December 2017. The increase in bonds corresponds principally to bonds issued on 10 April 2017, for a total of
US$ 1.5 billion, with a 10 year-maturity tranche of US$ 750 million at fixed coupon of 3.150%, and a 30 year-maturity tranche of US$
750 million at a fixed coupon of 3.950%. For further information, please refer to the “Notes to the IFRS Consolidated Financial
Statements — Note 34.3: Net cash — Financing Liabilities”.

2.1.6.4

Sales Financing

Airbus favours cash sales and encourages independent financing by customers, in order to avoid retaining credit or asset risk in relation
to delivered products. However, in order to support product sales, primarily at Airbus Commercial Aircraft and Airbus Helicopters, Airbus
may agree to participate in the financing of customers, on a case-by-case basis, directly or through guarantees provided to third parties.
The financial markets remain unpredictable, which may cause Airbus to increase its future outlays in connection with customer financing
of commercial aircraft and helicopters, mostly through finance leases and secured loans and if deemed necessary through operatinglease structures. Nevertheless, Airbus intends to keep the amount as low as possible.
Dedicated and experienced teams structure such financing transactions and closely monitor total finance and asset value exposure of
Airbus and its evolution in terms of quality, volume and intensity of cash requirements. Airbus aims to structure all financing it provides
to customers in line with market-standard contractual terms so as to facilitate any subsequent sale or reduction of such exposure.

AIRBUS REGISTRATION DOCUMENT 2017 -80

EVOLUTION OF AIRBUS COMMERCIAL AIRCRAFT GROSS EXPOSURE DURING 2017 IN US$ MILLIONS

Airbus Commercial Aircraft gross customer financing exposure as of 31 December 2017 is distributed over 52 aircraft, operated at any
time by approximately 13 airlines. In addition, the level of exposure may include other aircraft-related assets, such as spare parts. Morethan 90% of Airbus Commercial Aircraft gross customer financing exposure is distributed over 8 countries (this excludes backstop
commitments).
Over the last three years (2015 to 2017), the average number of aircraft delivered in respect of which financing support has been
provided by Airbus Commercial Aircraft amounted to 1% of the average number of deliveries over the same period, i.e. 8 aircraft
financed per year out of 680 deliveries per year on average.
Airbus Helicopters’ gross customer financing exposure amounted to € 137 million as of 31 December 2017. This exposure is distributed
over 63 helicopters, operated by approximately 5 companies.
For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements — Note 25: Sales Financing
Transactions”.

2.1.7 Hedging Activities
More than 75% of Airbus’ revenues are denominated in US dollars, with approximately 60% of such currency exposure “naturally
hedged” by US dollar-denominated costs. The remainder of costs is incurred primarily in euros, and to a lesser extent, in pounds
sterling. Consequently, to the extent that Airbus does not use financial instruments to hedge its net current and future exchange rate
exposure from the time of a customer order to the time of delivery, its profits will be affected by market changes in the exchange rate of
the US dollar against these currencies, and to a lesser extent, by market changes in the exchange rate of pound sterling against theeuro.
As Airbus intends to generate profits only from its operations and not through speculation on foreign currency exchange rate
movements, Airbus uses hedging strategies solely to mitigate the impact of exchange rate fluctuations on its EBIT.
The table below sets forth the notional amount of foreign exchange hedges in place as of 31 December 2017, and the average
US dollar rates applicable to corresponding EBIT.

2018

2019

2020

2021

2022+

Total

24.5

25.1

22.4

13.0

3.7

88.7

€/US$

1.25

1.24

1.22

1.23

1.24

£/US$

1.53

1.46

1.37

1.36

1.36

Total Hedges (in US$bn)
Forward Rates (in US$)For further information on Airbus’ hedging strategies in response to its particular exposures as well as a description of its current hedge
portfolio, please refer to the “Notes to the IFRS Consolidated Financial Statements — Note 35.1: Information about Financial
Instruments — Financial Risk Management.”

AIRBUS REGISTRATION DOCUMENT 2017 -81

2.2 Financial Statements
The IFRS Consolidated Financial Statements and the Company Financial Statements of Airbus SE for the year ended 31 December
2017, together with the related notes, appendices and independent auditors’ report, shall be deemed to be incorporated in and form partof this Registration Document.
In addition, the English version of the following document shall be deemed to be incorporated by reference in and form part of this
Registration Document:•

The IFRS Consolidated Financial Statements and the Company Financial Statements of Airbus Group SE for the year ended
31 December 2016, together with the related notes, appendices and Auditors’ reports, as incorporated by reference in theRegistration Document filed in English with, and approved by, the AFM on 4 April 2017 and filed in English with the Chamber ofCommerce of The Hague.

Copies of the above-mentioned documents are available free of charge upon request in English at the registered office of the Company
and on www.airbus.com (Investors > Annual Reports and Registration Documents).
Copies of the above-mentioned Registration Documents are also available in English on the website of the AFM on www.afm.nl(Professionals > Registers > Approved prospectuses). The above-mentioned financial statements are also available in English forinspection at the Chamber of Commerce of The Hague.
The Company confirms that the reports of the auditors incorporated by reference herein have been accurately reproduced and that as
far as the Company is aware and is able to ascertain from the information provided by the auditors, no facts have been omitted which
would render such reports inaccurate or misleading.

AIRBUS REGISTRATION DOCUMENT 2017 -82

2.3 Statutory Auditors’ Fees
Please refer to the “Notes to the IFRS Consolidated Financial Statements — Note 37: Auditor Fees”.

2.4 Information Regarding the Statutory Auditors
Date of first
appointment

Expiration of current
term of office

28 April 201611 April 2018

Ernst & Young Accountants LLP

Boompjes 258
3011 XZ Rotterdam
Postbus 488
3000 AL Rotterdam
The Netherlands
Represented by A.A. van Eimeren* A resolution will be submitted to the Annual General Meeting of Shareholders in 2018, in order to appoint Ernst & Young Accountants
LLP as the Company’s auditors for the 2018 financial year.
Ernst & Young Accountants LLP has a licence from the AFM to perform statutory audits for Public Interest Entities and its
representative is member of the NBA (Koninklijke Nederlandse Beroepsorganisatie van Accountants - the Royal Netherlands Institute ofChartered Accountants. The NBA is the professional body for accountants in the Netherlands).

AIRBUS REGISTRATION DOCUMENT 2017 -83

3.
General Description of theCompany and its Share Capital
3.1 General Description of the Company
3.1.1

Commercial and Corporate Names, Seat and Registered OfficeCommercial Name: Airbus
Statutory Name: Airbus SE
Registered Office: Mendelweg 30, 2333 CS Leiden, The Netherlands
Seat (statutaire zetel): Amsterdam
Tel: +31 (0)71,5245,600
Fax: +31 (0)71,5232,807

3.1.2

Legal Form

The Company is a European public company (Societas Europaea), with its seat in Amsterdam, The Netherlands and registered with theDutch Commercial Register (Handelsregister) under number 24288945. As a company operating worldwide, the Company is subject to,and operates under, the laws of each country in which it conducts business.

3.1.3

Governing Laws and Disclosures

The Company is governed by the laws of the Netherlands (in particular Book 2 of the Dutch Civil Code and the Dutch Corporate
Governance Code) and by its Articles of Association (the “Articles of Association”).
The Company is subject to various legal provisions of the Dutch Financial Supervision Act (Wet op het financieel toezicht) (the “WFT”).
In addition, given the fact that its shares are admitted for trading on a regulated market in France, Germany and Spain, the Company issubject to certain laws and regulations in these three jurisdictions. A summary of the main regulations applicable to the Company inrelation to information to be made public in these three jurisdictions, as well as the Netherlands, is set out below.

3.1.3.1

Periodic Disclosure Obligations

Pursuant to Directive 2004 / 109 / EC on the harmonisation of transparency requirements in relation to information about issuers whose
securities are admitted to trading on a regulated market (as amended, the “Transparency Directive”), the Company is required todisclose certain periodic and on-going information (the “Regulated Information”).
Pursuant to the Transparency Directive, the Company must disseminate such Regulated Information throughout the European
Community in a manner ensuring fast access to such information on a non-discriminatory basis. For this purpose, the Company may
use a professional service provider (wire). In addition, Regulated Information must be filed at the same time with the relevant competentmarket authority. The Company must then ensure that Regulated Information remains publicly available for at least ten years.
Finally, Regulated Information must be made available for central storage by a mechanism that is officially designated by theCompany’s home Member State.

AIRBUS REGISTRATION DOCUMENT 2017 -84

Dutch Regulations
For the purpose of the Transparency Directive, supervision of the Company is effected by the Member State in which it maintains its
corporate seat, which is the Netherlands. The competent market authority that assumes final responsibility for supervising complianceby the Company in this respect is the AFM.
Under the Transparency Directive as implemented under Dutch law, the Company is subject to a number of periodic disclosure
requirements, such as:•

publishing an Annual Financial Report, together with an audit report drawn up by the Statutory Auditors, within four months after theend of each financial year; and•publishing a semi-Annual Financial Report, within three months after the end of the first six months of the financial year.

In addition, the Company must file with the AFM, within five days following their adoption by the Company’s shareholders, its audited
annual financial statements (including the consolidated ones), the management report, the Auditors’ report and other information related
to the financial statements.

French Regulations
In accordance with the requirement set forth in the Transparency Directive to disseminate Regulated Information throughout theEuropean Community, the Company is required to provide simultaneously in France the same information as that provided abroad.

German Regulations
Due to the listing of the Company’s shares in the Prime Standard sub-segment of the Regulated Market (regulierter Markt) of theFrankfurt Stock Exchange, the Company is subject to certain post-listing obligations as described below. The Company is included
inter alia in the selection index MDAX, the MidCap index of Deutsche Börse AG.
Pursuant to the Exchange Rules (Börsenordnung) of the Frankfurt Stock Exchange, the Company is required to publish consolidated
annual and semi-annual financial statements as well as quarterly reports which may be prepared in English only. In addition,
pursuant to the Exchange Rules, the Company is required to publish a financial calendar at the beginning of each financial year inGerman and English. The Company is also required to hold an analysts’ meeting at least once per year in addition to the press
conference regarding the annual financial statements.

Spanish Regulations
In accordance with the requirement set forth in the Transparency Directive to disseminate Regulated Information throughout theEuropean Community, the Company is required to provide simultaneously in Spain the same information as that provided abroad.

3.1.3.2

Ongoing Disclosure Obligations

Pursuant to the Transparency Directive, Regulated Information includes in particular “inside information” as defined pursuant to
Article 7 of EU Regulation No. 596 / 2014 on market abuse (the “Market Abuse Regulation” or "MAR"). Such information must be
disseminated throughout the European Community (see introduction to section “— 3.1.3.1 Periodic Disclosure Obligations”).
Inside information consists of information of a precise nature which has not been made public, relating, directly or indirectly, to one
or more issuers or to one or more financial instruments and which, if it were made public, would be likely to have a significant effecton the prices of those financial instruments or on the price of related derivative financial instruments.
Inside information must be disclosed to the markets as soon as possible. However, an issuer may under its own responsibility delay
the public disclosure of inside information so as not to prejudice its legitimate interests provided that such delay would not be likely
to mislead the public and provided that the issuer is able to ensure the confidentiality of that information.

Dutch Regulations
Following the implementation of the Transparency Directive into Dutch law, the Company must publicly disclose RegulatedInformation and also file Regulated Information with the AFM, which will keep all relevant Regulated Information in a publicly
available register. The Company will, whenever it discloses inside information pursuant to applicable mandatory law as part of theRegulated Information, disclose and disseminate throughout the European Community any such information.
Under Dutch law, the Company must also publish any change in the rights attached to its shares, as well as any changes in therights attached to any rights issued by the Company to acquire Airbus shares.

French Regulations
Any inside information as defined above will be disclosed in France by means of dissemination throughout the European
Community, as it is organised under Dutch law implementing the Transparency Directive so as to provide simultaneously in France
equivalent information to that provided abroad.

German Regulations
Any inside information as defined above will be disclosed in Germany by means of dissemination throughout the European
Community, as it is organised under Dutch law implementing the Transparency Directive so as to provide simultaneously inGermany equivalent information to that provided abroad.
AIRBUS REGISTRATION DOCUMENT 2017 -85

Spanish Regulations
Any inside information as defined above will be disclosed simultaneously in Spain by filing the relevant regulatory announcement (hecho
relevante) with the CNMV.
Pursuant to the Spanish securities rules and regulations, the Company is also required to make available to shareholders and file with
the CNMV a Corporate Governance Report in the Spanish language or in a language customary in the sphere of international financeon an annual basis.

3.1.4

Date of Incorporation and Duration of the Company

The Company was incorporated on 29 December 1998 for an unlimited duration.

3.1.5

Objects of the Company

Pursuant to its Articles of Association, the objects of the Company are to hold, co-ordinate and manage participations or otherinterests and to finance and assume liabilities, provide for security and/or guarantee debts of legal entities, partnerships, businessassociations and undertakings that are involved in:•

the aeronautic, defence, space and/or communication industry; or•

activities that are complementary, supportive or ancillary thereto.

3.1.6

Commercial and Companies Registry

The Company is registered with the Dutch Commercial Register (Handelsregister) under number 24288945.

3.1.7

Inspection of Corporate Documents

The Articles of Association are available for inspection in Dutch at the Chamber of Commerce.
In France, the Articles of Association are available at the operational headquarters of Airbus (2, rond-point Emile Dewoitine, 31700
Blagnac, France, Tel.: +33 5 81 31 75 00).
In Germany, the Articles of Association are available at the Munich office of Airbus (Willy-Messerschmitt-Strasse 1, 82024 Ottobrunn,
Germany, Tel.: +49 89 60 70).
In Spain, the Articles of Association are available at the CNMV and at the Madrid office of Airbus (Avenida de Aragón 404, 28022
Madrid, Spain, Tel.: +34 91,585 70 00).

3.1.8

Financial YearThe financial year of the Company starts on 1 January and ends on 31 December of each year.

3.1.9

Allocation and Distribution of Income

3.1.9.1

Dividends

The Board of Directors shall determine which part of the profits of the Company shall be attributed to reserves. The remaining
distributable profit shall be at the disposal of the shareholders’ meeting.
The shareholders’ meeting may resolve (if so proposed by the Board of Directors) that all or part of a distribution on shares shall be paidin Airbus shares or in the form of assets as opposed to cash.
The declaration of a dividend, an interim dividend or another distribution to the shareholders shall be made known to them within sevendays after such declaration. Declared dividends, interim dividends or other distributions shall be payable on such date(s) as determinedby the Board of Directors.
Dividends, interim dividends and other distributions on shares shall be paid by bank transfer to the bank or giro accounts designated inwriting to the Company by, or on behalf of, shareholders at the latest 14 days after their announcement.
The persons entitled to a dividend, interim dividend or other distribution shall be the shareholders as at a record date to be determinedby the Board of Directors for that purpose, which date may not be a date prior to the date on which such dividend, interim dividend orother distribution is declared.

AIRBUS REGISTRATION DOCUMENT 2017 -86

3.1.9.2

Liquidation

In the event of the dissolution and liquidation of the Company, the assets remaining after payment of all debts and liquidation expenses
shall be distributed amongst the holders of the shares in proportion to their shareholdings.

3.1.10General Meetings

3.1.10.1

Calling of Meetings

Shareholders’ meetings are held as often as the Board of Directors deems necessary, when required under the Dutch Civil Code (as aresult of a decrease of the Company’s equity to or below half of the Company’s paid up and called up capital) or upon the request ofshareholders holding, individually or together, at least 10% of the total issued share capital of the Company. The AGM of Shareholdersof the Company is held within six months of the end of the financial year.
The Board of Directors must give notice of shareholders’ meetings through publication of a notice on the Company’s website(www.airbus.com), which will be directly and permanently accessible until the shareholders’ meeting. The Company must comply withthe statutory rules providing for a minimum convening period, which currently require at least 42 days of notice. The convening noticemust state the items required under Dutch law.
Shareholders’ meetings are held in Amsterdam, The Hague, Rotterdam or Haarlemmermeer (Schiphol Airport). The Board of Directors
may decide that shareholders’ meetings may be attended by means of electronic or video communication devices from the locations
mentioned in the convening notice.
The Board of Directors must announce the date of the AGM of Shareholders at least ten weeks before the Meeting. A matter which one
or more shareholders or other parties with meeting rights collectively representing at least the statutory threshold (which is currently 3%of the issued share capital) have requested in writing to be put on the agenda for a General Meeting of Shareholders shall be includedin the convening notice or shall be announced in the same fashion, if the substantiated request or a proposal for a resolution is received
by the Company no later than the 60th day before the general meeting. When exercising the right to put a matter on the agenda for a
General Meeting of Shareholders, the respective shareholder or shareholders are obliged to disclose their full economic interest to theCompany. The Company must publish such disclosure on its website.
A request as referred to in the preceding paragraph may only be made in writing. The Board of Directors can decide that in “writing” isunderstood to include a request that is recorded electronically.

3.1.10.2

Right to Attend Shareholders’ Meetings

Each holder of one or more shares may attend shareholders’ meetings, either in person or by written proxy, speak and vote according to
the Articles of Association. See “— 3.1.10.4 Conditions of Exercise of Right to Vote”. However, under (and subject to the terms of) the
Articles of Association these rights may be suspended under certain circumstances. A shareholder, or another person who has the rightto attend a shareholders’ meeting, can be represented by more than one proxy holder, provided that only one proxy holder can beappointed for each share.
The persons who have the right to attend and vote at shareholders’ meetings are those who are on record in a register designated forthat purpose by the Board of Directors on the registration date referred to in the Dutch Civil Code which is currently the 28th day prior to
the day of the shareholders’ meeting (the “Registration Date”), irrespective of who may be entitled to the shares at the time of thatmeeting.
As a prerequisite to attending the shareholders’ meeting and to casting votes, the Company, or alternatively an entity or person sodesignated by the Company, should be notified in writing by each holder of one or more shares and those who derive theaforementioned rights from these shares, not earlier than the Registration Date, of the intention to attend the meeting in accordance withthe relevant convening notice.
Shareholders holding their Company shares through Euroclear France S.A. who wish to attend general meetings will have to requestfrom their financial intermediary or accountholder an admission card and be given a proxy to this effect from Euroclear France S.A. inaccordance with the relevant convening notice. For this purpose, a shareholder will also be able to request that its shares be registereddirectly (and not through Euroclear France S.A.) in the register of the Company. However, only shares registered in the name ofEuroclear France S.A. may be traded on stock exchanges.
In order to exercise their voting rights, the shareholders will also be able, by contacting their financial intermediary or accountholder, togive their voting instructions to Euroclear France S.A. or to any other person designated for this purpose, as specified in the relevant
convening notice.
Pursuant to its Articles of Association, the Company may provide for electronic means of attendance, speaking and voting at theshareholders’ meetings. The use of such electronic means will depend on the availability of the necessary technical means and market
practice.

3.1.10.3

Majority and Quorum

All resolutions are adopted by means of a simple majority of the votes cast except when a qualified majority is prescribed by the Articles
of Association or by Dutch law. No quorum is required for any shareholders’ meeting to be held except as required under applicable law
for a very limited number of resolutions of an extraordinary nature. Dutch law requires a special majority for the passing of certain
resolutions: inter alia, capital reduction, exclusion of pre-emption rights in connection with share issues, statutory mergers or statutory

AIRBUS REGISTRATION DOCUMENT 2017 -87

de-mergers; the passing of such resolutions requires a majority of two-thirds of the votes cast if 50% of the share capital with voting
rights is not present at the shareholders’ meeting (or otherwise a simple majority). In addition, resolutions to amend the Articles of
Association or to dissolve the Company may only be adopted with a majority of at least two-thirds of the valid votes cast at ashareholders’ meeting, whatever the quorum present at such meeting, and resolutions to amend certain provisions of the Articles of
Association may only be adopted with a majority of at least 75% of the valid votes cast at a shareholders’ meeting, whatever the quorum
present at such meeting.

3.1.10.4

Conditions of Exercise of Right to Vote

In all shareholders’ meetings, each shareholder has one vote in respect of each share it holds. The major shareholders of the Company– as set forth in “— 3.3.2 Relationships with Principal Shareholders” – do not enjoy different voting rights from those of the othershareholders.
A shareholder whose shares are subject to a pledge or usufruct shall have the voting rights attaching to such shares unless otherwise
provided by law or by the Articles of Association or if, in the case of a usufruct, the shareholder has granted voting rights to theusufructuary. Pursuant to the Articles of Association and subject to the prior consent of the Board of Directors, a pledgee of shares in
the Company may be granted the right to vote in respect of such pledged shares.
According to the Articles of Association, no vote may be cast at the General Meeting on a share that is held by the Company or asubsidiary, nor for a share in respect of which one of them holds the depository receipts. Usufructuaries and pledgees of shares that areheld by the Company or its subsidiaries are, however, not excluded from their voting rights, in case the right of usufruct or pledge wasvested before the share was held by the Company or its subsidiary.

3.1.11

Disclosure of Holdings

Pursuant to the WFT, any person who, directly or indirectly, acquires or disposes of an interest in the capital or voting rights of theCompany must immediately give written notice to the AFM by means of a standard form, if, as a result of such acquisition or disposal,
the percentage of capital interest or voting rights held by such person meets, exceeds or falls below the following thresholds: 3%, 5%,10%, 15%, 20%, 25%, 30%, 40%, 50%, 60%, 75% and 95%. Any person whose interest in the capital or voting rights of the Company
meets, exceeds or falls below one or several of the above-mentioned thresholds due to a change in the Company’s outstanding capital,
or in voting rights attached to the shares as notified to the AFM by the Company, should notify the AFM no later than the fourth trading
day after the AFM has published the notification by the Company. Among other things, the Company is required to notify the AFM
immediately if its outstanding share capital or voting rights have changed by 1% or more since the Company’s previous notification.
If at the end of a calendar year the composition of a shareholder’s holding differs from its previous disclosure as a result of theconversion of certain types of securities or following the exercise of rights to acquire voting rights, this shareholder must then provide an
update of its previous disclosure within four weeks of the end of each calendar year by giving written notice thereof to the AFM. The
disclosures are published by the AFM on its website (www.afm.nl).
Pursuant to the Articles of Association, shareholders must notify the Company when meeting or crossing the thresholds above. The
Articles of Association also contain disclosure obligations for shareholders that apply when their interests in the Company reach or crosscertain thresholds.
Under the Articles of Association, the disclosure obligations of shareholders are enhanced in several ways beyond what is required
under the WFT, including by requiring the disclosure of additional information, tying the disclosure obligations to a broader range ofinterests in the capital or voting rights of the Company and by requiring a shareholder to notify the Company if his or her interest
reaches, exceeds or falls below the Mandatory Disposal Threshold (as defined below) or if the interest of a shareholder (alone or amember of a concert) which is above such Mandatory Disposal Threshold changes in its composition, nature and/or size.
Failure to comply with the legal obligation to notify a change in shareholding under the WFT is a criminal offence punishable by criminal
and administrative penalties as well as civil law penalties, including the suspension of voting rights. Failure to comply with a notification
under the Articles of Association can lead to a suspension of meeting and voting rights.

Disclosure Requirements for Members of the Board of Directors and the Executive Committee
Disclosure of Holdings
In addition to the requirements under the WFT regarding the disclosure of holdings in case the specified thresholds are met or exceededor if holdings fall below these thresholds, Members of the Board of Directors must report to the AFM the number of shares in the
Company and attached voting rights(1) held by him or an entity controlled by him, within two weeks following his appointment as Director,
whether or not such shareholdings meet or exceed any of the specified thresholds. Subsequently, any Member of the Board of Directors
is required to notify the AFM of any changes in such number of shares in the Company and attached voting rights.

Disclosure of Transactions Carried Out on Any Securities Issued by the Company
Based on the Market Abuse Regulation, certain persons discharging managerial or supervisory responsibilities within the Company aswell as persons closely associated with them (together “Insiders”, as defined below), are required to notify the Company and the AFM
within three trading days of all transactions conducted for their own account involving shares of the Company, or derivatives or other(1)

In this context, the term “shares” also includes for example depositary receipts for shares and rights resulting from an agreement to acquire shares ordepositary receipts for shares, specifically call options, warrants, and convertible bonds. Equally, the term “voting rights” also includes actual orcontingent rights to voting rights (e.g., embedded in call options, warrants or convertible bonds).
AIRBUS REGISTRATION DOCUMENT 2017 -88financial instruments related to such shares, unless the aggregate amount of such transactions does not exceed € 5,000 in respect of alltransactions in a calendar year.
“Insiders” for the Company include (i) Members of the Board of Directors and the Executive Committee of the Company as well as
certain other senior executives who are not members of these bodies and who have regular access to inside information relating directly
or indirectly to the Company and power to take managerial decisions affecting the future developments and business prospects of theCompany, (ii) persons closely associated with any person mentioned under category (i) (including their spouses, life partners or any
partner considered by national law as equivalent to the spouse, dependent children and other relatives who have shared the same
household), and (iii) legal entities, trusts or partnerships whose managerial responsibilities are discharged by any person referred to in
categories (i) or (ii) or which are directly or indirectly controlled by such a person, or that have been set up for the benefit of such aperson, or whose economic interests are substantially equivalent to those of such a person.
The Company has adopted specific internal insider trading rules (the “Insider Trading Rules”) in order to ensure compliance with theabove requirements and with other share trading regulations applicable in the Netherlands, France, Germany and Spain. The Insider
Trading Rules are available on the Company’s website, and provide in particular that: (i) all employees and Directors are prohibited fromconducting transactions in the Company’s shares or stock options if they have inside information, and (ii) certain persons are only
allowed to trade in the Company’s shares or stock options within very limited periods and have specific information obligations to the
ITR Compliance Officer of the Company and the competent financial market authorities with respect to certain transactions. The ITR
Compliance Officer is responsible for the implementation of the Insider Trading Rules.
Pursuant to the Market Abuse Regulation, the Company must maintain a list of all persons working for it by virtue of a labour
relationship or otherwise, who may have access to inside information.

3.1.12

Mandatory Disposal

3.1.12.1

Mandatory Disposal Threshold Restricting Ownership to 15%

The Articles of Association prohibit any shareholder from holding an interest of more than 15% of the share capital or voting rights of theCompany, acting alone or in concert with others (the “Mandatory Disposal Threshold”). An interest (“Interest”) includes not only
shares and voting rights, but also other instruments that cause shares or voting rights to be deemed to be at someone’s disposal
pursuant to the WFT, and must be notified to the Dutch regulator, the AFM, if certain thresholds are reached or crossed. Any
shareholder having an interest of more than the Mandatory Disposal Threshold must reduce its interest below the Mandatory Disposal
Threshold, for instance by disposing of its Excess Shares, within two weeks. The same applies to concerts of shareholders and otherpersons who together hold an interest exceeding the Mandatory Disposal Threshold. Should such shareholder or concert not comply
with not exceeding the 15% Mandatory Disposal Threshold by the end of such two-week period, their Excess Shares would betransferred to a Dutch law foundation (“Stichting”), which can, and eventually must, dispose of them.
The Dutch law foundation would issue depositary receipts to the relevant shareholder in return for the Excess Shares transferred to thefoundation, which would entitle the relevant shareholder to the economic rights, but not the voting rights, attached to such Company
shares. The foundation’s articles of association and the terms of administration governing the relationship between the foundation andthe depositary receipt holders provide, inter alia, that:•the Board Members of the foundation must be independent from the Company, any grandfathered persons and their affiliates (see“— 3.1.12.2 Exemptions from Mandatory Disposal Threshold”) and any holder of depositary receipts and their affiliates (there is anagreement under which the Company will, inter alia, cover the foundation’s expenses and indemnify the Board Members against
liability);•

the Board Members are appointed (except for the initial Board Members who were appointed at incorporation) and dismissed by theManagement Board of the foundation (the Company may however appoint one Board Member in a situation where there are no
foundation Board Members);•

the foundation has no discretion as to the exercise of voting rights attached to any of the Company shares held by it and will in amechanical manner vote to reflect the outcome of the votes cast (or not cast) by the other shareholders, and the foundation will
distribute any dividends or other distributions it receives from the Company to the holders of depositary receipts; and•no transfer of a depositary receipt can be made without the prior written approval of the foundation’s Board.

For any shareholder or concert, the term “Excess Shares”, as used above, refers to such number of shares comprised in the interest ofsuch shareholder or concert exceeding the Mandatory Disposal Threshold which is the lesser of: (i) the shares held by such shareholder
or concert which represent a percentage of the Company’s issued share capital that is equal to the percentage with which the foregoinginterest exceeds the Mandatory Disposal Threshold; and (ii) all shares held by such person or concert.
This restriction is included in the Articles of Association to reflect the Company’s further normalised governance going forward, aiming at
a substantial increase of the free float and to safeguard the interests of the Company and its stakeholders (including all its
shareholders), by limiting the possibilities of influence above the level of the Mandatory Disposal Threshold or takeovers other than apublic takeover offer resulting in a minimum acceptance of 80% of the share capital referred to below.

3.1.12.2

Exemptions from Mandatory Disposal Threshold

The restrictions pursuant to the Mandatory Disposal Threshold under the Articles of Association do not apply to a person who has madea public offer with at least an 80% acceptance (including any Airbus shares already held by such person). These restrictions also havecertain grandfathering exemptions for the benefit of shareholders and concerts holding interests exceeding the Mandatory Disposal
Threshold on the date when the current Articles of Association entered into force (the “Exemption Date”).

AIRBUS REGISTRATION DOCUMENT 2017 -89

Different grandfathering regimes apply to such shareholders and concerts, depending on the interests and the nature thereof held by
each such shareholder or concert on the Exemption Date.
The Company has confirmed that (i) the specific exemption in Article 16.1.b of the Articles of Association applies to Société de Gestion
de Participations Aéronautiques (“Sogepa”), as it held more than 15% of the outstanding Company voting rights and shares including
the legal and economic ownership thereof on the Exemption Date; and (ii) the specific exemption in Article 16.1.c applies to the concert
among Sogepa, Gesellschaft zur Beteiligungsverwaltung GZBV mbH & Co. KG (“GZBV”) and Sociedad Estatal de Participaciones
Industriales (“SEPI”), as they held more than 15% of the outstanding Company voting rights and shares including the legal andeconomic ownership thereof on the Exemption Date.

3.1.13

Mandatory Offers

3.1.13.1

Takeover Directive

The Directive 2004 / 25 / EC on takeover bids (the “Takeover Directive”) sets forth the principles governing the allocation of laws
applicable to the Company in the context of a takeover bid for the shares of the Company. The Takeover Directive refers to the rules of
the Netherlands and the rules of the European Union Member State of the competent authority that must be chosen by the Company
from among the various market authorities supervising the markets where its shares are listed.
For the Company, matters relating to, inter alia, the consideration offered in the case of a bid, in particular the price, and matters relating
to the bid procedure, in particular the information on the offeror’s decision to make a bid, the contents of the offer document and thedisclosure of the bid, shall be determined by the laws of the European Union Member State having the competent authority, which will
be selected by the Company at a future date.
Matters relating to the information to be provided to the employees of the Company and matters relating to company law, in particular
the percentage of voting rights which confers control and any derogation from the obligation to launch a bid, the conditions under which
the Board of Directors of the Company may undertake any action which might result in the frustration of the bid, the applicable rules andthe competent authority will be governed by Dutch law (see “— 3.1.13.2 Dutch Law”).

3.1.13.2

Dutch Law

In accordance with the Dutch act implementing the Takeover Directive (the “Takeover Act”), shareholders are required to make a public
offer for all issued and outstanding shares in the Company’s share capital if they — individually or acting in concert (as such term isdefined in the Takeover Act), directly or indirectly — have 30% or more of the voting rights (significant control) in the Company. In
addition to the other available exemptions that are provided under Dutch law, the requirement to make a public offer does not apply topersons, who at the time the Takeover Act came into force, already held – individually or acting in concert – 30% or more of the voting
rights in the Company. In the case of such a concert, a new Member of the concert can be exempted if it satisfies certain conditions.

3.2 General Description of the Share Capital
3.2.1

Issued Share Capital

As of 31 December 2017, the Company’s issued share capital amounted to € 774,556,062, consisting of 774,556,062 fully paid-up
shares of a nominal value of € 1 each.

3.2.2

Authorised Share Capital

As of 31 December 2017, the Company’s authorised share capital amounted to € 3 billion, consisting of 3 billion shares of € 1 each.

3.2.3

Modification of Share Capital or Rights Attached to the Shares

The shareholders’ meeting has the power to authorise the issuance of shares. The shareholders’ meeting may also authorise the Boardof Directors, for a period of no more than five years, to issue shares and to determine the terms and conditions of share issuances.
Holders of shares have a pre-emptive right to subscribe for any newly issued shares in proportion to the aggregate nominal value ofshares held by them, except for shares issued for consideration other than cash and shares issued to employees of Airbus. For thecontractual position as to pre-emption rights, see “— 3.3.2 Relationships with Principal Shareholders”.
The shareholders’ meeting also has the power to limit or to exclude pre-emption rights in connection with new issues of shares, andmay authorise the Board of Directors for a period of no more than five years, to limit or to exclude pre-emption rights. All resolutions in

AIRBUS REGISTRATION DOCUMENT 2017 -90this context must be approved by a two-thirds majority of the votes cast during the shareholders’ meeting in the case where less thanhalf of the capital issued is present or represented at said meeting.
However, the Articles of Association provide that a 75% voting majority is required for any shareholders’ resolution to issue shares or to
grant rights to subscribe for shares if the aggregate issue price is in excess of € 500 million per share issuance, and no preferential
subscription rights exist in respect thereof. The same voting majority requirement applies if the shareholders’ meeting wishes todesignate the Board of Directors to have the authority to resolve on such share issuance or granting of rights.
Pursuant to the shareholders’ resolutions adopted at the AGM held on 12 April 2017, the powers to issue shares and to grant rights to
subscribe for shares and to limit or exclude preferential subscription rights for existing shareholders have been delegated to the Boardof Directors for the purpose of:
1. employee share ownership plans and share-related long-term incentive plans, provided that such powers shall be limited to 0.14%
of the Company’s authorised share capital; and2. funding the Company and any of its subsidiaries, provided that such powers shall be limited to 0.3% of the Company’s authorised
share capital.
Such powers have been granted for a period expiring at the AGM to be held in 2017, and shall not extend to issuing shares or granting
rights to subscribe for shares (i) if there is no preferential subscription right (by virtue of Dutch law, or because it has been excluded bymeans of a resolution of the competent corporate body) and (ii) for an aggregate issue price in excess of € 500 million per shareissuance.
At the AGM held on 12 April 2017, the Board of Directors was authorised, for a period of 18 months from the date of such AGM, torepurchase shares of the Company, by any means, including derivative products, on any stock exchange or otherwise, as long as, uponsuch repurchase, the Company would not hold more than 10% of the Company’s issued share capital, and at a price per share not lessthan the nominal value and not more than the higher of the price of the last independent trade and the highest current independent bid
on the trading venues of the regulated market of the country in which the purchase is carried out.
The shareholders’ meeting may reduce the issued share capital by cancellation of shares, or by reducing the nominal value of theshares by means of an amendment to the Articles of Association. The cancellation of shares requires the approval of a two-thirds
majority of the votes cast during the shareholders’ meeting in the case where less than half of the capital issued is present or
represented at said meeting; the reduction of nominal value by means of an amendment to the Articles of Association requires theapproval of a two-thirds majority of the votes cast during the shareholders’ meeting (unless the amendment to the Articles of Association
also concerns an amendment which under the Articles of Association requires a 75% voting majority).
At the AGM held on 12 April 2017, the Board of Directors and the Chief Executive Officer were authorised, with powers of substitution,
to implement a cancellation of shares held or repurchased by the Company, including the authorisation to establish the exact number ofthe relevant shares thus repurchased to be cancelled.

3.2.4

Securities Granting Access to the Company’s Share Capital

Except for convertible bonds (See “— Corporate Governance — 4.3.3 Long-Term Incentive Plans” and please refer to the “Notes to the
IFRS Consolidated Financial Statements — Note 34.3: Financing liabilities”), there are no securities that give access, immediately orover time, to the share capital of the Company.
The table below shows the total potential dilution that would occur if all the convertible bonds issued as of 31 December 2017 were
exercised:

Percentage
of diluted
Number of shares
capital
Total number of Company shares issued as of
31 December 2017
Total number of Company shares which may be issued
following exercise of the convertible bonds
Total potential Company share capital

Percentage
of diluted
Number of
votingvoting rights
rights(1)774,556,062

99.356%774,426,537

99.356%

5,022,990

0.644%

5,022,990

0.644%

779,579,052

100%

779,449,527

100%(1) The potential dilutive effect on capital and voting rights of the exercise of these convertible bonds may be limited as a result of the Company’s share
repurchase programmes and in the case of subsequent cancellation of repurchased shares. See “— 3.3.7.1 Dutch law and information on share
repurchase programmes”.

AIRBUS REGISTRATION DOCUMENT 2017 -91

3.2.5

Changes in the Issued Share Capital
Nominal Number ofvaluesharesperissued /share cancelledTotal
number ofissued Total issued
shares after capital after
Premium(1) transaction transaction- 779,719,254 € 779,719,254

Date

Nature of Transaction

20 June 2013

Cancellation of shares upon authorisation grantedby the Extraordinary General Meeting held on
27 March 2013

€ 1 47,648,691

29 July 2013

Issue of shares for the purpose of an employee
offering€12,113,245 € 57,580,650 781,832,499 € 781,832,499

Cancellation of shares upon authorisation grantedby the Extraordinary General Meeting held on
27 September 2013 27 March 2013

€1

3,099,657- 778,732,842 € 778,732,842

Cancellation of shares upon authorisation grantedby the Annual Shareholders’ Meeting held on
27 September 2013 29 May 2013

- 776,283,958 € 776,283,958€1

2,448,884

In 2013

Issue of shares following exercise of options
granted to employees(2)€16,873,677 € 176,017,918 783,157,635 € 783,157,635

In 2014Issue of shares following exercise of options
granted to employees(2)€11,871,419 € 50,619,684 784,780,585 € 784,780,585

In 2015

Cancellation of shares upon authorisation grantedby the Annual Shareholders’ Meeting held on
27 May 2015

€12,885,243

In 2015

Issue of shares following exercise of options
granted to employees(2)€11,910,428- 785,344,784 € 785,344,784

In 2016

Cancellation of treasury shares€ 1 14,131,131- 771,213,653 € 771,213,653

In 2016

Issues of shares for the purpose of an employee
offering€1

1,474,716- 772,688,369 € 772,688,369

In 2016

Issue of shares following exercise of options
granted to employees(2)€1

224,500- 772,912,869 € 772,912,869

In 2017

Issues of shares for the purpose of an employee
offering€1

1,643,193- 785,333,784 € 785,333,784- 774,556,062€
774,556,062(1) The costs (net of taxes) related to the initial public offering of the shares of the Company in July 2000 have been offset against share premium for an
amount of € 55,849,772.
(2) For information on stock option plans under which these options were granted to the Company’s employees, see “— Corporate Governance — 4.3.3
Long-Term Incentive Plans”.

In the course of 2017, a total number of 1,643,193 new shares were issued, all in the framework of the Employee Share Ownership Plan(“ESOP”). During 2017, (i) the Company did not repurchase any shares and (ii) none of the treasury shares were cancelled. As a result,as at 31 December 2017, the Company held 129,525 treasury shares.

AIRBUS REGISTRATION DOCUMENT 2017 -92

3.3 Shareholdings and Voting Rights
3.3.1

Shareholding Structure at the end of 2017

As of 31 December 2017, the French State held 11.08% of the outstanding Company shares through Sogepa, the German State held
11.07% through GZBV, a subsidiary of Kreditanstalt für Wiederaufbau (“KfW”), a public law institution serving domestic and international
policy objectives of the Government of the Federal Republic of Germany, and the Spanish State held 4.17% through SEPI. The public(including Airbus’ employees) and the Company held, respectively, 73.66% and 0.02% of the Company’s share capital.
The diagram below shows the ownership structure of the Company as of 31 December 2017 (% of capital and of voting rights (inparentheses) before exercise of the convertible bonds). See “— Corporate Governance — 4.3.3 Long-Term Incentive Plans”.

OWNERSHIP STRUCTURE OF AIRBUS SE AS OF 31 DECEMBER 2017

In 2017, the below listed entities have notified the AFM of their substantial interest in the Company. For further details, please refer tothe website of the AFM at: www.afm.nl:•

Capital Group International Inc. owns 10.06% of the voting rights via Capital Research and Management Company.

As of 31 December 2017, the Company held, directly or indirectly through another company in which the Company holds directly or
indirectly more than 50% of the share capital, 129,525 of its own shares, equal to 0.02% of issued share capital. The treasury shares
owned by the Company do not carry voting rights.
For the number of shares and voting rights held by Members of the Board of Directors and Executive Committee, see “— Corporate
Governance — 4.2.1 Remuneration Policy”.
Approximately 2.0% of the share capital (and voting rights) was held by the Company’s employees as of 31 December 2017.

AIRBUS REGISTRATION DOCUMENT 2017 -93

3.3.2

Relationships with Principal Shareholders

In 2013, GZBV, Sogepa and SEPI entered into a shareholders’ agreement (the “Shareholders’ Agreement”). The Shareholders’ Agreement,
further details of which are set out in more detail below, does not give the parties to it any rights to designate Members of the Board of
Directors or management team or to participate in the governance of the Company. The Company has also entered into state security
agreements with each of the French State and German State, which are also described in more detail below.

3.3.2.1 Corporate Governance Arrangements
Corporate governance arrangements of the Company were substantially changed in 2013, resulting in changes in the composition of theBoard of Directors and its internal rules, as well as amendments to the Articles of Association of the Company. These changes wereintended to further normalise and simplify the Company’s corporate governance, reflecting an emphasis on best corporate governancepractices and the absence of a controlling shareholder group. Changes to the Company’s corporate governance arrangements in the
Articles of Association, included (i) disclosure obligations for shareholders that apply when their interests in the Company reach or crosscertain thresholds and (ii) ownership restrictions prohibiting any shareholder from holding an interest of more than 15% of the sharecapital or voting rights of the Company, acting alone or in concert with others. See sections 3.1.11 and 3.1.12 above and section 4
below.

3.3.2.2

Core Shareholder Arrangements

Grandfathering Agreement
At the Consummation, the French State, Sogepa, the German State, KfW and GZBV (all parties together the “Parties” and each,individually, as a “Party”) entered into an agreement with respect to certain grandfathering rights under the Articles of Association.
Below is a summary of such agreement.

Individual Grandfathering Rights
A Party that is individually grandfathered pursuant to Article 16.1.b of the Articles of Association (such Party holding “Individual
Grandfathering Rights”) shall remain individually grandfathered in accordance with the Articles of Association if the new concert withrespect to the Company (the “Concert”) is subsequently terminated (for instance by terminating the Shareholders’ Agreement) or if itexits the Concert.

Loss of Individual Grandfathering Rights
A Party holding Individual Grandfathering Rights as well as any of its affiliates who are grandfathered pursuant to Article 16.1.b inconjunction with Article 16.3 of the Articles of Association (such affiliates holding “Derived Grandfathering Rights”, and the Individual
Grandfathering Rights and the Derived Grandfathering Rights, together, the “Grandfathering Rights”) shall all no longer be entitled toexercise their Grandfathering Rights in the event:•

the Concert is terminated as a result of it or any of its affiliates having actually or constructively terminated such Concert; or•

it or its relevant affiliate(s) exit(s) the Concert;and such termination or exit is not for good cause and is not based on material and on-going violations of the Concert arrangements,
including, without limitation, of the Shareholders’ Agreement, by the other principal Member of the Concert.
In the event that in the future the voting rights in the Company of the other principal Member of the Concert together with those of its
affiliates would for an uninterrupted period of three months represent less than 3% of the outstanding aggregate voting rights of theCompany, the Grandfathering Rights of the Party including its affiliates which were no longer entitled to use their Grandfathering Rights
shall from then on revive and Sogepa and GZBV shall jointly notify the Company to that effect.

Notification to the Company
The Company will not be required to take any of the actions provided for in Article 15 of the Articles of Association pursuant to the postconcert Grandfathering Agreement unless and until it receives (i) a joint written instruction from Sogepa and GZBV with respect to thetaking of any of the actions provided for in Article 15 of the Articles of Association pursuant to the post-concert Grandfathering
Agreement, or (ii) a copy of a binding advice rendered by three independent, impartial and neutral Expert Adjudicators in order to settle
any dispute between the Parties arising out of or in connection with the post-concert Grandfathering Agreement.
The Company will not incur any liability to any of the Parties by taking such actions following receipt of any such joint instruction orbinding advice and the Company will not be required to interpret the post-concert Grandfathering Agreement or any such joint
instruction or binding advice.
Notwithstanding the description under “Various provisions – Jurisdiction” below, the courts of the Netherlands will have exclusive
jurisdiction to resolve any dispute, controversy or claim affecting the rights or obligations of the Company under the post-concert
Grandfathering Agreement.

Various provisions
Termination. The post-concert Grandfathering Agreement terminates only if either the French State and its affiliates or the German
State and its affiliates no longer hold shares in the Company.
Governing law. Laws of the Netherlands.

AIRBUS REGISTRATION DOCUMENT 2017 -94Jurisdiction. The courts of the Netherlands shall have exclusive jurisdiction. This is binding advice for any dispute, controversy or claim
arising out of or in connection with the post-concert Grandfathering Agreement in accordance with the procedure set forth in the postconcert Grandfathering Agreement; provided, however, that application to the courts is permitted to resolve any such disputecontroversy or claim.

Shareholders’ Agreement
Below is a further description of the Shareholders’ Agreement, based solely on a written summary of the main provisions of the
Shareholders’ Agreement that has been provided to the Company by Sogepa, GZBV and SEPI (all parties together the“Shareholders”).

Governance of the Company
Appointment of the Directors. The shareholders shall vote in favour of any draft resolution relating to the appointment of Directors
submitted to the shareholders’ meeting of the Company in accordance with the terms and conditions of the German State Security
Agreement and the French State Security Agreement (as described below). If, for whatever reason, any person to be appointed as a
Director pursuant to the German State Security Agreement or the French State Security Agreement is not nominated, the shareholders
shall exercise their best endeavours so that such person is appointed as a Director.
Sogepa and GZBV shall support the appointment of one Spanish national that SEPI may present to them as Member of the Board of
Directors of the Company, provided such person qualifies as an Independent Director pursuant to the conditions set forth in the Board
Rules, and shall vote as shareholders in any shareholders’ meeting in favour of such appointment and against the appointment of any
other person for such position.
If, for whatever reason, the French State Security Agreement and/or the German State Security Agreement has / have been terminated,
KfW or Sogepa, as the case might be, shall propose two persons, and the shareholders shall exercise their best endeavours so thatthese persons are appointed as Directors.
Modification of the Articles of Association. Sogepa and GZBV shall consult each other on any draft resolution intending to modify
the Board Rules and/or the Articles of Association. Unless Sogepa and GZBV agree to vote in favour together of such draft resolution,
the shareholders shall vote against such draft resolution. If Sogepa and GZBV reach a mutual agreement on such draft resolution, theshareholders shall vote in favour of such draft resolution.
Reserved Matters. With respect to the matters requiring the approval of a Qualified Majority at the Board level (“Reserved Matters”),
all the Directors shall be free to express their own views. If the implementation of a Reserved Matter would require a decision of theshareholders’ meeting of the Company, Sogepa and GZBV shall consult each other with a view to reaching a common position. Should
Sogepa and GZBV fail to reach a common position, Sogepa and GZBV shall remain free to exercise on a discretionary basis their votes.
Prior consultation. Sogepa and GZBV shall consult each other on any draft resolution submitted to the shareholders’ meeting otherthan related to Reserved Matters and the Board Rules.

Balance of Interests
The shareholders agree their common objective to seek a balance between themselves of their respective interest in the Company asfollows:•

to hold as closely as reasonably possible to 12% of the voting rights for Sogepa, together with any voting rights attributable toSogepa and/or to the French State, pursuant to Dutch takeover rules except for voting rights attributable due to acting in concert
with the other parties;•

to hold as closely as reasonably possible to 12% of the voting rights for GZBV, together with any voting rights attributable to GZBV
and/or to the German State, pursuant to Dutch takeover rules except for voting rights attributable due to acting in concert with theother parties;•

to hold as closely as reasonably possible to 4% of the voting rights for SEPI, together with any voting rights attributable to SEPI
and/or to the Spanish State, pursuant to Dutch takeover rules except for voting rights attributable due to acting in concert with theother parties.

Mandatory Takeover Threshold
The total aggregate voting rights of the shareholders shall always represent less than 30% of the voting rights of the Company, or lessthan any other threshold the crossing of which would trigger for any shareholder a mandatory takeover obligation (the “MTO
Threshold”). In the event that the total aggregate voting rights of the shareholders exceed the MTO Threshold, the shareholders shalltake all appropriate actions as soon as reasonably practicable, but in any event within 30 days, to fall below the MTO Threshold.

Transfer of Securities
Permitted transfer. Transfer of securities by any shareholder to one of its affiliates.
Pre-emption right. Pro rata pre-emption rights of the shareholders in the event any shareholder intends to transfer any of its securities
to a third party directly or on the market.
Call-option right. Call option right for the benefit of the shareholders in the event that the share capital or the voting rights of any
shareholders cease to be majority owned directly or indirectly by the French State, the German State or the Spanish State as
applicable.
Tag-along right. Tag-along right for the benefit of SEPI in the event that Sogepa, the French State or any of their affiliates and any
French public entity and GZBV, the German State or any of their affiliates and any public entity propose together to transfer all of their
entire voting rights interests.

AIRBUS REGISTRATION DOCUMENT 2017 -95

Various provisions
Termination. The Shareholders’ Agreement may cease to apply in respect of one or more Shareholders and/or their affiliates, subject
to the occurrence of certain changes in its or their shareholding interest in the Company or in its or their shareholders.
Governing law. Laws of the Netherlands.
Jurisdiction. Arbitration in accordance with the Rules of Arbitration of the International Chamber of Commerce, with the seat ofarbitration in The Hague (The Netherlands).

3.3.2.3

Undertakings with Respect to Certain Interests of Certain Stakeholders

The Company has made certain undertakings and entered into certain agreements in connection with certain interests of its former coreshareholders and the German State.

State Security Agreements and Related Undertakings and Negotiations
The Company and the French State have entered into an amendment to the existing convention between the French State and theCompany relating to the ballistic missiles business of the Company (as so amended, the “French State Security Agreement”). Under
the French State Security Agreement, certain sensitive French military assets will be held by a Company subsidiary (the “French
Defence Holding Company”). At the Consummation, the Company contributed certain sensitive French military assets to the French
Defence Holding Company. The French State has the right to approve or disapprove of — but not to propose or appoint — three outside
Directors to the Board of Directors of the French Defence Holding Company (the “French Defence Outside Directors”), at least two ofwhom must qualify as Independent Directors under the Board Rules if they were Members of the Board of Directors. Two of the French
Defence Outside Directors are required to also be Members of the Board of Directors. French Defence Outside Directors may neither(i) be employees, managers or corporate officers of a company belonging to the Company (although they may be Members of the Boardof Directors) nor (ii) have material on-going professional relationships with Airbus.
The Company and the German State have entered into an agreement relating to the protection of essential interests to the German
State’s security (the “German State Security Agreement”). Under the German State Security Agreement, certain sensitive German
military assets are held by a Company subsidiary (the “German Defence Holding Company”). The German State has the right toapprove or disapprove of — but not to propose or appoint — three outside Directors to the Supervisory Board of the German Defence
Holding Company (the “German Defence Outside Directors”), at least two of whom must qualify as Independent Directors under the
Board Rules if they were Members of the Board of Directors. Two of the German Defence Outside Directors are required to also be
Members of the Board of Directors. The qualifications to serve as a German Defence Outside Director are comparable to those to serve
as a French Defence Outside Director, with the additional requirement that a German Defence Outside Director may not be a civil
servant.

Dassault Aviation
The Company entered into an agreement with the French State pursuant to which the Company would:•

grant the French State a right of first offer in case of the sale of all or part of its shareholding in Dassault Aviation; and•commit to consult with the French State prior to making any decision at any shareholders’ meeting of Dassault Aviation.

For more information about Dassault Aviation, see “— Information of Airbus Activities — 1.1.5 Investments”.

Stock Exchange Listings
The Company has undertaken to the parties to the Shareholders’ Agreement that for the duration of the Shareholders’ Agreement theCompany’s shares will remain listed exclusively in France, Germany and Spain.

Specific Rights of the French State
Pursuant to an agreement entered into between the Company and the French State (the “Ballistic Missiles Agreement”), theCompany has granted to the French State (a) a veto right and subsequently a call option on shares of the company perfomring the theballistic missiles activity exercisable under certain circumstances, including if (i) a third party acquires, directly or indirectly, either alone
or in concert, more than 15% or any multiple thereof of the share capital or voting rights of the Company or (ii) the sale of the shares ofsuch companies carrying out such activity is considered and (b) a right to oppose the transfer of any such shares. The Company, theFrench State and the company performing the ballistic missiles activity are parties to a similar convention regarding the assets
comprising the French nuclear airborne systems under which the French State has similar rights.

3.3.3

Form of Shares

The shares of the Company are in registered form. The Board of Directors may decide with respect to all or certain shares, on shares inbearer form.
Shares shall be registered in the shareholders’ register without the issue of a share certificate or, should the Board of Directors so
decide, with respect to all or certain shares, with the issue of a certificate. Share certificates shall be issued in such form as the Board of
Directors may determine. Registered shares shall be numbered in the manner to be determined by the Board of Directors.

AIRBUS REGISTRATION DOCUMENT 2017 -96

3.3.4

Changes in the Shareholding of the Company

The evolution in ownership of the share capital and voting rights of the Company over the past three years is set forth in the table below:

Position as of
31 December 2016

Position as of
31 December 2017

Position as of
31 December 2015

% ofcapital% ofvotingrightsNumber ofshares% ofcapital% ofvotingrightsNumber ofshares% of capital

11.08%

11.08%

85,835,477

11.11%

11.11%

85,835,477

10.93%

10.95% 85,835,477

GZBV

11.07%

11.07%

85,709,822

11.09%

11.09%

85,709,822

10.91%

10.93% 85,709,822

SEPI

4.17%

4.17%

32,330,381

4.18%

4.18%

32,330,381

4.12%

4.12% 32,330,381

-

-

-

-

26.38%

26.38%

203,875,680

25.96%

Shareholders
SOGEPA(1)

Sub-total New
Shareholder Agt.

26.32%

26.33%

203,875,680% ofvoting rights

Number ofshares--26.01% 203,875,680

Foundation “SOGEPA”

0.00%

0.00%

-

0.00%

0.00%

0

0.00%

0.00%

Public(2)73.66%

73.67%

570,550,857

73.60%

73.62%

568,853,019

73.85%

73.99% 579,995,047

Own share buy-back(3)

0.02%

-

129,525

0.02%-

184,170

0.19%

Total

100%

100% 774,556,062

100%

100%

772,912,869

100%

-

0
1,474,057

100% 785,344,784(1) KfW & other German public entities.
(2) Including Company employees. As of 31 December 2017, the Company’s employees held approximately 2.0% of the share capital (and voting rights).
(3) The shares owned by the Company do not carry voting rights.

To the knowledge of the Company, there are no pledges over the shares of the Company.
The Company requested disclosure of the identity of the beneficial holders of its shares held by identifiable holders (“Titres au porteur
identifiables”) holding 2,000 or more shares each. The study, which was completed on 31 December 2017, resulted in the identificationof 1,893 shareholders holding a total of 569,727,245 Company shares (including 1,858,501 shares held by Iberclear on behalf of the
Spanish markets and 25,517,394 shares held by Clearstream on behalf of the German market).
The shareholding structure of the Company as of 31 December 2017 is as shown in the diagram in “— 3.3.1 Shareholding Structure at
the end of 2017”.

3.3.5

Persons Exercising Control over the Company

See “— 3.3.1 Shareholding Structure at the end of 2017” and “— 3.3.2 Relationships with Principal Shareholders”.

3.3.6

Simplified Group Structure Chart

The following chart illustrates the simplified organisational structure of Airbus as of 31 December 2017, comprising three Divisions andthe main Business Units. See “— Information on Airbus Activities — 1.1.1 Overview — Organisation of Airbus’ Businesses”. For ease ofpresentation, certain intermediate holding companies have been omitted.

SIMPLIFIED GROUP STRUCTURE CHART

AIRBUS REGISTRATION DOCUMENT 2017 -97

AIRBUS REGISTRATION DOCUMENT 2017 -98

3.3.7Purchase by the Company of its Own Shares

3.3.7.1

Dutch Law and Information on Share Repurchase Programmes

Under Dutch civil law, the Company may acquire its own shares, subject to certain provisions of the law of the Netherlands and the
Articles of Association, if (i) the shareholders’ equity less the payment required to make the acquisition does not fall below the sumof paid-up and called portion of the share capital and any reserves required by the law of the Netherlands and (ii) the Company
and its subsidiaries would not thereafter hold or hold in pledge shares with an aggregate nominal value exceeding one-half (50%)
of the Company’s issued share capital. Share acquisitions may be effected by the Board of Directors only if the shareholders’meeting has authorised the Board of Directors to effect such repurchases. Such authorisation may apply for a maximum period of
18 months.
For the authorisations granted to the Board of Directors at the AGM of Shareholders held on 12 April 2017, see “— 3.2.3 Modification of
Share Capital or Rights Attached to the Shares”.

3.3.7.2

European Regulation

Pursuant to the Market Abuse Regulation and EU Delegated Regulation No. 2016/1052, the Company is subject to conditions for share
repurchase programmes and disclosure relating thereto. In particular, prior to implementing the share repurchase programme, theCompany must ensure adequate disclosure of the following information: the purpose of the programme, the maximum pecuniary
amount allocated to the programme, the maximum number of shares to be acquired, and the duration of the programme.
In addition, the Company must report to the competent authority of each trading venue on which the shares are admitted to trading or
are traded no later than by the end of the seventh daily market session following the date of execution of the transaction, all thetransactions relating ot the buy-back programme and ensure adequate disclosure of that certain information relating thereto within thesame time frame. These transactions must be posted on the Company's website and be made available to the public for at least a 5year period from the date of adequate public disclosure.

3.3.7.3

French Regulations

As a result of its listing on a regulated market in France, the Company is subject to the European regulations summarised above in
3.3.7.2 (European Regulation).
In addition, the Autorité des marchés financiers ("AMF") General Regulations and AMF guidelines n°2017-04 define the conditions
for a company’s trading in its own shares to be valid in accordance with the Market Abuse Regulation and EU Delegated Regulation
No. 2016 / 1052.
Moreover, the Company must report to the AMF, on at least a monthly basis, all the specified information regarding such
purchases previously published on its website and information concerning the cancellation of such repurchased shares.

3.3.7.4

German Regulations

As a foreign issuer, the Company is subject to German rules on repurchasing its own shares only to a limited extent, since German
rules refer to the law of the Member State in which the Company is domiciled. In addition, general principles of German law on equal
treatment of shareholders are applicable.
The European regulations summarised above in 3.3.7.2 (European Regulation) also applies to the Company in Germany.

3.3.7.5 Spanish Regulations
As a foreign issuer, the Company is not subject to Spanish rules on trading in its own shares, which only apply to Spanish issuers. The
European regulations summarised above in 3.3.7.2 (European Regulation) also applies to the Company in Spain.

AIRBUS REGISTRATION DOCUMENT 2017 -99

3.3.7.6

Description of the Share Repurchase Programme to be Authorised by the Annual General
Meeting of Shareholders to be held on 11 April 2018

Pursuant to Articles 241-2-I and 241-3 of the AMF General Regulations, below is a description of the share repurchase programme(“descriptif du programme”) to be implemented by the Company:•

date of the shareholders’ meeting to authorise the share repurchase programme: 11 April 2018;•

intended use of the Airbus SE shares held by the Company as of the date of this document: the owning of shares for the
performance of obligations related to employee share option programmes or other allocations of shares to employees of Airbus andAirbus’ companies;•

purposes of the share repurchase programme to be implemented by the Company (by order of decreasing priority, without
any effect on the actual order of use of the repurchase authorisation, which will be determined on a case-by-case basis by
the Board of Directors based on need):••

the reduction of share capital by cancellation of all or part of the repurchased shares, it being understood that the repurchased
shares shall not carry any voting or dividend rights,•

the owning of shares for the performance of obligations related to (i) debt financial instruments convertible into Airbus SE
shares, or (ii) employee share option programmes or other allocations of shares to employees of Airbus and Airbus’ companies,•

the purchase of shares for retention and subsequent use for exchange or payment in the framework of potential external growthtransactions, and•the liquidity or dynamism of the secondary market of the Airbus SE shares carried out pursuant to a liquidity agreement to beentered into with an independent investment services provider in compliance with the decision of the AMF dated 1 October 2008(as amended) related to approval of liquidity agreements recognised as market practices by the AMF;

procedure:•

maximum portion of the issued share capital that may be repurchased by the Company: 10%,•

maximum number of shares that may be repurchased by the Company: 77,455,606 shares, based on an issued share capital of
774,556,062 shares as of 28 February 2018.

•the amounts to be paid in consideration for the purchase of the treasury shares must be, in accordance with applicable Dutch
law, a price per share not less than the nominal value and not more than the higher of the price of the last independent trade
and the highest current independent bid on the trading venues of the regulated market of the country in which the purchase iscarried out.
The Company undertakes to maintain at any time a sufficient number of shares in public hands to meet the thresholds ofEuronext,•

shares may be bought or sold at any time (including during a public offering) to the extent authorised by the stock exchange
regulations and by any means, including, without limitation, by means of block trades and including the use of options,combinations of derivative financial instruments or the issue of securities giving rights in any way to Airbus SE shares within thelimits set out in this document.

The portion of shares repurchased through the use of block trades may amount to all the shares to be repurchased in the context of
this programme,••in addition, in the event that derivative financial instruments are used, the Company will ensure that it does not use mechanisms
which would significantly increase the volatility of the shares in particular in the context of call options,•characteristics of the shares to be repurchased by the Company: shares of Airbus SE, a company listed on Euronext Paris, on
the regulierter Markt of the Frankfurt Stock Exchange and on the Madrid, Bilbao, Barcelona and Valencia Stock Exchanges,•

maximum purchase price per share: € 100;

term of the share repurchase programme and other characteristics: this share repurchase programme shall be valid until
11 October 2019 inclusive, i.e. the date of expiry of the authorisation requested from the AGM of Shareholders to be held on
11 April 2018.

As of the date of this document, the Company has not entered into any liquidity agreement with an independent investment services
provider in the context of the share repurchase programme.
Share Repurchase Programme 2017
On 28 February 2018, the Company started implementing a share buyback programme that was conferred by Board of Directors on 14
February 2018 following the authorisation by the Company’s Annual General Meeting of shareholders on 12 April 2017. This sharebuyback programme is reported in accordance with the Market Abuse Regulation.

AIRBUS REGISTRATION DOCUMENT 2017 -100

3.4 Dividends
3.4.1

Dividends and Cash Distributions Paid

Cash distributions paid to the shareholders are set forth in the table below:

Date of the cash distribution payment Gross amount per share(1)Financial year2013

3 June 2014

€ 0.752014

3 June 2015

€ 1.202015

3 May 2016

€ 1.302016

20 April 2017

€ 1.35(1) Note: figures have not been adjusted to take into account changes in the number of shares outstanding.

3.4.2

Dividend Policy of the Company

In December 2013, Airbus formalised a dividend policy demonstrating a strong commitment to shareholders’ returns. This policy targets
sustainable growth in the dividend within a payout ratio of 30%-40%.
Based on earnings per share (EPS) of € 3.71 and a net income of € 2.873 million, the Board of Directors will propose to the AGM thepayment to shareholders on 18 April 2018 of a dividend of € 1.50 per share (FY 2016: € 1.35). This value is at the upper end of thedividend policy reflecting our strong 2017 achievements, including the positive evolution of the 2017 underlying performance and our2017 cash generation. It highlights our confidence in our future financial performance as well as on-going commitment towards
sustained dividend growth and increasing shareholder returns.
The record date should be 17 April 2018. This proposed dividend represents year-on-year dividend per share increase of 11.1%.

3.4.3

Unclaimed Dividends

Pursuant to the Articles of Association, the claim for payment of a dividend or other distribution approved by the shareholders’ meetingshall lapse five years after the day on which such claim becomes due and payable. The claim for payment of interim dividends shalllapse five years after the day on which the claim for payment of the dividend against which the interim dividend could be distributed
becomes due and payable.

3.4.4

Taxation

The statements below represent a broad analysis of the current tax laws of the Netherlands. The description is limited to the material tax
implications for a holder of the Company’s shares (the “Shares”) who is not and is not deemed to be resident in the Netherlands for any
Dutch tax purposes (a “Non-Resident Holder”). Certain categories of holders of the Company’s shares may be subject to special rules
which are not addressed below and which may be substantially different from the general rules described below. Investors who are in
doubt as to their tax position in the Netherlands and in their state of residence should consult their professional advisors. Where thesummary refers to “the Netherlands” or “Netherlands” or “Dutch”, it refers only to the European part of the Kingdom of the Netherlands.

Withholding Tax on Dividends
In general, a dividend distributed by the Company in respect of Shares will be subject to Dutch withholding tax at a statutory rate of
15%. Dividends include dividends in cash or in kind, deemed and constructive dividends, repayment of paid-in capital not recognised ascapital for Dutch dividend withholding tax purposes, and liquidation proceeds in excess of the average paid-in capital recognised ascapital for Dutch dividend withholding tax purposes. Stock dividends paid out of the Company’s paid-in-share premium, recognised ascapital for Dutch dividend withholding tax purposes, will not be subject to this withholding tax.
A Non-Resident Holder of Shares can be eligible for a partial or complete exemption or refund of all or a portion of the above
withholding tax pursuant to domestic rules or under a tax convention that is in effect between the Netherlands and the Non-Resident
Holder’s country of residence for tax purposes. The Netherlands has concluded such conventions with the US, Canada, Switzerland,
Japan, almost all European Union Member States and other countries.

Withholding Tax on Sale or Other Dispositions of Shares
Payments on the sale or other dispositions of Shares will not be subject to Dutch withholding tax, unless the sale or other disposition is,
or is deemed to be, made to the Company or a direct or indirect subsidiary of the Company. In principle, a redemption or sale to the
AIRBUS REGISTRATION DOCUMENT 2017 -101

Company or a direct or indirect subsidiary of the Company will be deemed to be a dividend and will be subject to the rules set forth in“Withholding Tax on Dividends” above.

Taxes on Income and Capital Gains
A Non-Resident Holder who receives dividends distributed by the Company on Shares or who realises a capital gain derived from
Shares, will not be subject to Dutch taxation on income or a capital gain unless:•the income or capital gain is attributable to an enterprise or part thereof which is either effectively managed in the Netherlands or
carried on through a permanent establishment (“vaste inrichting”) or permanent representative (“vaste vertegenwoordiger”) taxable
in the Netherlands and the holder of Shares derives profits from such enterprise (other than by way of the holding of securities); or•

the Non-Resident Holder is an entity and has, directly or indirectly, a substantial interest (“aanmerkelijk belang”) or a deemed
substantial interest in the Company and such interest is held by the Non-Resident Holder with the main purpose of or one of themain purposes of avoiding personal income tax for another person; or•

the Non-Resident Holder is an individual and such holder or a connected person to such holder ("verbonden persoon") has, directly
or indirectly, a substantial interest (“aanmerkelijk belang”) or a deemed substantial interest in the Company; or

the income or capital gain qualifies as income from miscellaneous activities (“belastbaar resultaat uit overige werkzaamheden”) in
the Netherlands as defined in the Dutch Income Tax Act 2001 (“Wet inkomstenbelasting 2001”), including without limitation,
activities that exceed normal, active asset management (normaal actief vermogensbeheer).

Generally, a Non-Resident Holder of Shares will not have a substantial interest in the Company’s share capital, unless the NonResident Holder, alone or together with certain related persons holds, jointly or severally directly or indirectly, Shares in the Company,
or a right to acquire Shares in the Company representing 5% or more of the Company’s total issued and outstanding share capital or
any class thereof. Generally, a deemed substantial interest exists if all or part of a substantial interest has been or is deemed to havebeen disposed of with application of a roll-over relief.

Gift or Inheritance Taxes
Dutch gift or inheritance taxes will not be levied on the occasion of the transfer of Shares by way of gift by, or on the death of, a NonResident Holder, unless the transfer is construed as an inheritance or gift made by or on behalf of, a person who, at the time of the giftor death, is or is deemed to be resident in the Netherlands for the purpose of the relevant provisions.

Value Added Tax
There is no Dutch value added tax payable by a holder of Shares in respect of dividends on the Shares or on the transfer of the Shares.

Other Taxes and Duties
There is no Dutch registration tax, stamp duty or any other similar tax or duty other than court fees payable in the Netherlands by aholder of Shares in respect of or in connection with the execution, delivery and/or enforcement by legal proceedings (including any
foreign judgment in the courts of the Netherlands) with respect to the dividends on the Shares or on the transfer of the Shares.

Residence
A Non-Resident Holder will not become resident, or be deemed to be resident, in the Netherlands solely as a result of holding a Shareor of the execution, performance, delivery and/or enforcement of rights in respect of the Shares.

AIRBUS REGISTRATION DOCUMENT 2017 -

102

4.
Corporate Governance
4.1 Management and Control
The corporate governance arrangements of the Company were substantially changed pursuant to the Multiparty Agreement, includingchanges in the composition of the Board of Directors and the rules governing its internal affairs (the “Board Rules”). These changes areintended to further normalise and simplify the Company’s corporate governance, reflecting an emphasis on best corporate governancepractices and the absence of a controlling shareholder group. Below is a summary description of such changes.

4.1.1

Corporate Governance Arrangements

4.1.1.1

Board of Directorsa) Composition Rules and Principles
Under the Articles of Association, the Board of Directors consists of at most 12 Directors. Under the Board Rules, each Board Director
shall retire at the close of the AGM held three years following his or her appointment, unless the said mandate is renewed. Under the
Board Rules, at least a majority of the Members of the Board of Directors (i.e., 7/12) must be European Union (“EU”) nationals (including
the Chairman of the Board of Directors) and a majority of such majority (i.e., 4/7) must be both EU nationals and residents. No Director
may be an active civil servant. The Board of Directors has one Executive Director and 11 Non-Executive Directors. While the Board of
Directors appoints the Chief Executive Officer of the Company (the “CEO”), the CEO is required to be an Executive Director and must
be an EU national and resident; therefore it is anticipated that the Board of Directors will appoint as CEO the person appointed by theshareholders as an Executive Director. At least nine of the Non-Executive Directors must be “Independent Directors” (including the
Chairman of the Board of Directors).
Under the Board Rules, an “Independent Director” is a non-Executive Director who is independent within the meaning of the Dutch
Corporate Governance Code (the “Dutch Code”) and meets additional independence standards. Specifically, where the Dutch Codewould determine non-independence, in part, by reference to a Director’s relationships with shareholders who own at least 10% of theCompany, the Board Rules determine such Director’s non-independence, in relevant part, by reference to such Director’s relationships
with shareholders who own at least 5% of the Company. According to the criteria of the Dutch Code and the Board Rules, all nonExecutive Directors (including the Chairman) presently qualify as an “Independent Director”.
The Remuneration, Nomination and Governance Committee of the Board of Directors (the “RNGC”) is charged with recommending to
the Board of Directors the names of candidates to succeed active Board Members after consultation with the Chairman of the Board of
Directors and the CEO.
The Board of Directors, deciding by simple majority vote, proposes individuals to the shareholders’ meeting of the Company forappointment as Directors by the shareholders’ meeting. No shareholder or group of shareholders, or any other entity, has the right topropose, nominate or appoint any Directors other than the rights available to all shareholders under Dutch law.
In addition to the membership and composition rules described above, the RNGC, in recommending candidates for the Board of
Directors, and the Board of Directors in its resolutions proposed to the shareholders’ meeting regarding proposals to appoint or
replace a resigning or incapacitated Director, are both required to apply the following principles:•the preference for the best candidate for the position;•

the preference for gender diversity between equal profiles;•

the maintenance of appropriate skills mix and geographical experience;•

the maintenance, in respect of the number of Members of the Board of Directors, of the observed balance among the nationalities of
the candidates in respect of the location of the main industrial centres of Airbus (in particular among the nationals of the four
Member States of the EU where these main industrial centres are located); and•at least a majority of the members of the Board of Directors (i.e., 7/12) shall be EU nationals (including the Chairman), and amajority of such majority (i.e., 4/7) shall be both EU nationals and residents.

In accordance with these principles the Board of Directors shall seek greater diversity with respect to gender, age, geography,
education, profession and background.

AIRBUS REGISTRATION DOCUMENT 2017 -103

In 2017, one new member joined the Board of Directors, Lord Drayson. He has the competencies and personal skills to fulfil this positionin line with the Board’s expectations and the evolution of the business within the Company. As an engineer and entrepreneur, he brings
amongst other qualities the right expertise for our innovation focus and digital journey. Following the replacement of Mr. Mittal by Lord
Drayson, the Company will strive to find a new Board Member with an Asian profile.
At the end of 2017 half of the Members of the Board of Directors were under the age of 60. The proportion of female representation istoday at 25% against 0% five years ago. The Board composition shows a balanced mix of experience with, for example, four Members
having Defence industry skills, six having geopolitical or economics skills or four having information or data management skills. Moredetails as to the diversity of the Board of Directors Members are available in the table shown below.
The Board of Directors is required to take into account, in the resolutions proposed in respect of the nomination of Directors presented
to the shareholders’ meeting, the undertakings of the Company to the French State pursuant to the amendment to the French State
Security Agreement and to the German State pursuant to the German State Security Agreement, in each case as described more fullyin “3.3.2.3 - Undertakings with Respect to Certain Interests of Certain Stakeholders”. In practice, this means that (i) two of the Directors
submitted to the shareholders for appointment should also be French Defence Outside Directors (as defined above) of the French
Defence Holding Company (as defined above) who have been proposed by the Company and consented to by the French State and (ii)two of the Directors submitted to the shareholders for appointment should also be German Defence Outside Directors (as defined
above) of the German Defence Holding Company (as defined above) who have been proposed by the Company and consented to by
the German State.
The RNGC endeavours to avoid a complete replacement of outgoing Directors by new candidates and draws up an appointment andreappointment schedule for the Directors after consultation with the Chairman and the CEO. In drawing up such schedule, the RNGC
considers the continuity of company-specific knowledge and experience within the Board of Directors while it takes into account that a
Director should at the time of his appointment or re-appointment not be older than 75 years and ensuring that at least one third of
Directors’ positions are either renewed or replaced every year for a term of three years. This is to avoid large block replacements of
Directors at one single AGM, with the corresponding loss of experience and integration challenges, provided that exceptions to theserules may be agreed by the Board of Directors if specific circumstances provide an appropriate justification for such exceptions.

b) Role of the Board of Directors
Most Board of Directors’ decisions can be made by a simple majority of the votes of the Directors (a “Simple Majority”), but certain
decisions must be made by a 2/3 majority (i.e. eight favourable votes) of the Directors regardless of whether present or represented
in respect of the decision (a “Qualified Majority”). In addition, amendments to certain provisions of the Board Rules require theunanimous approval of the Board of Directors, with no more than one Director not being present or represented (including provisions
relating to nationality and residence requirements with respect to Members of the Board of Directors and the Executive Committee).
However, no individual Director or class of Directors has a veto right with respect to any Board of Directors’ decisions.
The Board Rules specify that in addition to the Board of Directors’ responsibilities under applicable law and the Articles of
Association, the Board of Directors is responsible for certain enumerated categories of decisions. Under the Articles of Association,
the Board of Directors is responsible for the management of the Company. Under the Board Rules, the Board of Directors delegates
the execution of the strategy as approved by the Board of Directors and the day-to-day management of the Company to the CEO,who, supported by the Executive Committee, makes decisions with respect to the management of the Company. However, the CEOshould not enter into transactions that form part of the key responsibilities of the Board of Directors unless these transactions havebeen approved by the Board of Directors.
Matters that require Board of Directors’ approval include among others, the following items (by Simple Majority unless otherwise noted):•

approving any change in the nature and scope of the business of the Company and Airbus;•

debating and approving the overall strategy and the strategic plan of Airbus;•

approving the operational business plan of Airbus (the “Business Plan”) and the yearly budget of Airbus (“Yearly Budget”), including
the plans for Investment, R&D, Employment, Finance and, as far as applicable, major programmes;•

nominating, suspending or revoking the Chairman of the Board of Directors and the CEO (Qualified Majority);•

approving of all of the Members of the Executive Committee as proposed by the CEO and their service contracts and othercontractual matters in relation to the Executive Committee and deciding upon the appointment and removal of the Secretary to theBoard of Directors on the basis of the recommendation of the RNGC;•

approving the relocation of the headquarters of the principal companies of Airbus and of the operational headquarters of theCompany (Qualified Majority);•

approving decisions in connection with the location of new industrial sites material to Airbus as a whole or the change of the locationof existing activities that are material to Airbus;•

approving decisions to invest and initiate programmes financed by Airbus, acquisition, divestment or sale decisions, in each case foran amount in excess of € 300 million;•

approving decisions to invest and initiate programmes financed by Airbus, acquisition, divestment or sale decisions, in each case foran amount in excess of € 800 million (Qualified Majority);•

approving decisions to enter into and terminate strategic alliances at the level of the Company or at the level of one of its principal
subsidiaries (Qualified Majority);•

approving matters of shareholder policy, major actions or major announcements to the capital markets; and•approving decisions in respect of other measures and business of fundamental significance for Airbus or which involves anabnormal level of risk.

AIRBUS REGISTRATION DOCUMENT 2017 -104

The Board of Directors must have a certain number of Directors present or represented at a meeting to take action. This quorum
requirement depends on the action to be taken. For the Board of Directors to make a decision on a Simple Majority matter, a majority of
the Directors must be present or represented. For the Board of Directors to make a decision on a Qualified Majority matter, at least tenof the Directors must be present or represented. If the Board of Directors cannot act on a Qualified Majority Matter because this quorum
is not satisfied, the quorum would decrease to eight of the Directors at a new duly called meeting.
In addition, the Board Rules detail the rights and duties of the Members of the Board of Directors and sets out the core principles which
each and every Member of the Board of Directors shall comply and shall be bound by, such as acting in the best interest of theCompany and its stakeholders, devoting necessary time and attention to the carrying out of their duties and avoiding any and all
conflicts of interest.

AIRBUS REGISTRATION DOCUMENT 2017 -105c) The Board of Directors in 2017(i) Composition of the Board of Directors in 2017
Airbus SE Board of Directors

AIRBUS REGISTRATION DOCUMENT 2017 -106

AIRBUS REGISTRATION DOCUMENT 2017 -107The Company has not appointed observers to the Board of Directors. Pursuant to applicable Dutch law, the employees are not entitledto elect a Director. There is no minimum number of shares that must be held by a Director.

(ii)

Curriculum Vitae and other Mandates and Duties Performed in any Company by the Members of theBoard of Directors in 2017
DENIS RANQUE
Curriculum Vitae

66 years old
Director since 2013,
re-elected in 2017
Independent

Denis Ranque began his career at the French Ministry for Industry, where he held various positions in theenergy sector, before joining the Thomson group in 1983 as Planning Director. The following year, he moved
to the electron tubes division, first as Director of space business, then, from 1986, as Director of the division's
microwave tubes department. Two years later, the electron tubes division became the affiliate Thomson
Tubes Electroniques, and Denis Ranque took over as Chief Executive of this subsidiary in 1989. In April
1992, he was appointed Chairman and CEO of Thomson Sintra Activités Sous-marines. Four years later, hebecame CEO of Thomson Marconi Sonar, the sonar systems joint venture set up by Thomson-CSF and
GEC-Marconi. In January 1998, Denis Ranque was appointed Chairman and Chief Executive Officer of theThomson-CSF group, now called Thales. He resigned from this position in May 2009, as a consequence of achange in shareholding. From February 2010 to June 2012 he has been Non-Executive Chairman ofTechnicolor. Since October 2001, he has also been Chairman of the Board of the Ecole des Mines
ParisTech, and since September 2002, Chairman of the Cercle de l'Industrie, an association which unites
France’s biggest industrial companies; both mandates ended in June 2012. He is member of the Boards of
directors of Saint-Gobain and CMA-CGM. From 2013 to 2017, he chaired The Haut Comité deGouvernement d’Entreprise, the independent body put in place by the French Code of corporate governancefor monitoring and encouraging progress in this field. From2014 to 2017 he has also been co-Chairman of La
Fabrique de l’industrie, a think tank dedicated to industry. Since 2014 he is the Chairman of the Fondation del’Ecole Polytechnique and a member of the French Academy for Technologies (“Académie desTechnologies”). Denis Ranque, born 1952, is a graduate of France's Ecole Polytechnique and the Corps desMines.
Current Mandates:• Chairman of the Board of Directors of Airbus SE;• Member of the Board of Directors of Saint Gobain;• Member of the Board of Directors of CMA-CGM;• President of the Board of Foundation de l’École Polytechnique.
Former mandates for the last five years:• Member of the Board of Directors of Scilab Enterprise SAS;
• President of the French Haut Comité de Gouvernement d’Entreprise;• Co-Chairman of the Board of Directors of La Fabrique de l’industrie.

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RALPH DOZIER CROSBY, JR.
Curriculum Vitae

70 years old
Director since 2013,
Re-elected in 2017
Independent

Ralph Crosby was Member of the Executive Committee of EADS from 2009 - 2012 and served as
Chairman and CEO of EADS North America from 2002 - 2009. He presently serves as an Independent
Director of American Electric Power headquartered in Columbus, Ohio, where he chairs the Human
Resources Committee and Serco, headquartered in London, United Kingdom. Furthermore, Mr Crosby
serves on the Board of Directors, and Executive Committee of the Atlantic Council of the United States.
Prior to joining EADS, Mr Crosby was an Executive with Northrop Grumman Corporation, where he hadserved as a Member of the Corporate Policy Council with positions including President of the Integrated
Systems Sector, Corporate Vice President and General Manager of the company’s Commercial Aircraft
Division and Corporate Vice President and General Manager of the B-2 Division. Prior to his industry
career, Mr Crosby served as an officer in the U.S. Army, where his last military assignment was as militarystaff assistant to the Vice President of the United States. Mr Crosby is a graduate of the US Military
Academy at West Point, and holds Master’s degrees from Harvard University, and the University ofGeneva, Switzerland. He is the recipient of the James Forrestal Award from the National Defense
Industrial Association, and has been awarded Chevalier of the Legion d’Honneur of France.
Current Mandates:• Member of the Board of Directors of Airbus SE;• Member of the Board of Directors (Supervisory Board) of American Electric Power Corporation;• Member of the Board of Directors and of the Executive Committee of the Atlantic Council of theUnited States.
Former mandates for the last five years:• Member of the Board of Directors (Supervisory Board) of Ducommun
Corporation(resigned June 2013);• Member of the Board of Directors (Supervisory Board) of Serco Group plc (until June 2017).

57 years old
Director since 2017
Independent(PAUL) LORD DRAYSON
Curriculum Vitae
Lord Drayson graduated as an engineer and finished his PhD in 1985 at Aston University. In 1987 hebecame Managing Director of The Lambourn Food Company Limited, a subsidiary of the Trebor Group
and, after a management buy-out of the Company in 1989, completed its sale to a third party in 1991. The
same year, he founded Genisys Development Limited, a consultancy company for new products
development and management. In 1993, he co-founded PowderJect Pharmaceuticals Plc and led its
business as Chairman and CEO until it was sold to Chiron Corporation, a US company, in 2003. He cofounded Drayson Racing Technologies LLP in 2007 and, in 2014 he set up Drayson Technologies Ltd, anInternet of Things platform company of which he currently is the co-founder, Chairman and CEO.
Lord Drayson was also elected chairman of the U.K. BioIndustry Association in 2001 and was appointed
to the House of Lords and a Member of the Science and Technology Committee of the House of Lords in2004. He was then appointed Parliamentary under Secretary of State for Defence Procurement in 2005
and became Minister of State for Defence Equipment & Support in 2006 and Minister of State for Science& Innovation in 2008.

Current Mandates:• Member of the Board of Directors of Airbus SE;• Chairman and CEO of Drayson Technologies Ltd;• Science Entrepreneur in Residence of Magdalen College, Oxford;• Supernumerary Fellow of St. John’s College, Oxford;• Member of Project of the “Oxfordshire Innovation Engine” Project;• Member of Her Majesty’s Privy Council;• Member of House of Lords;
AIRBUS REGISTRATION DOCUMENT 2017 -

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•

Co-founder and Trustee of the Drayson Foundation.

•
•
•
•
•
•

Former mandates for the last five years:
Scientific Advisor Formula E Championship (until January 2013);
Co-founder and Managing Partner Drayson Racing Technologies LLP (until April 2014);
President of the Motorsports Industry Association (until October 2015);
Non-Executive Director and Board Member of the Royal Navy (until November 2017);
Trustee and External Member of Council at University of Oxford (until December 2017);
Chairman of the Executive Committee at OUC (Oxford University Clinic) Centres of Excellence LLP(until December 2017).

THOMAS ENDERSCurriculum Vitae

59 years old
Director since 2012,
last re-elected in 2016
Executive

Dr. Thomas (“Tom”) Enders was appointed Chief Executive Officer (CEO) of Airbus SE, on 1 June 2012,
after having been CEO of the Airbus Commercial Aircraft Division since 2007. Before that he served as CoCEO of EADS between 2005 and 2007. He was Head of the Group’s Defence Division from 2000 to 2005.
He has been a member of the Executive Committee of Airbus since its creation in 2000.
Prior to joining the aerospace industry in 1991, Enders worked, inter alia, as a Member of the “Planungsstab”
of the German Minister of Defence and in various Foreign Policy think tanks. He studied Economics, Political
Science and History at the University of Bonn and at the University of California in Los Angeles.
In 2014, Enders joined the Advisory Council of the Munich Security Conference as well as the Senate of the
Max-Planck-Gesellschaft. He is patron of the German Mayday Foundation which supports airmen, womenand their families in times of need.
Tom Enders is a member of the BDI Board (German Industry Association) since 2009, the Governing Boardof HSBC Trinkhaus since 2012, the Joint Advisory Council of Allianz SE since 2013 and the Supervisory
Board of Linde AG since 2017.
Current Mandates:• Chief Executive Officer of Airbus SE;• Member of the Board of Directors of Airbus SE;• Member of the Executive Committee of Airbus SE;• Chairman of the Shareholder Board of Airbus SAS;
• Chairman of the Supervisory Board of Airbus Helicopters SAS;
• Chairman of the Supervisory Board of Airbus DS Holding B.V.;• Chairman of the Supervisory Board of Airbus Defence and Space Deutschland GmbH;• Member of the Board of Directors of BDI (Federation of German Industry);• Member of the Governing Board of HSBC Trinkhaus;• Member of the International Advisory Board of Atlantic Council of the US;• Member of the Joint Advisory Council of Allianz SE;• Member of the Board of Directors of WORLDVU Satellites Ltd. (OneWeb);• Member of the Supervisory Board of Linde AG;• Member of the Advisory Counsel of EDB.
Former mandates for the last five years:• Chairman of the Advisory Council for Aeronautics Research and Innovation in Europe (ACARE) (until
June 2013).

CATHERINE GUILLOUARDCurriculum Vitae

53 years old
Director since 2016
Independent

Catherine Guillouard began her career in 1993 at the Ministry of Economy in the French Treasury working
for the department in charge of the Africa – CFA zone and later in the Banking Affairs Department. She
joined Air France in 1997 as IPO Senior Project Manager. She was subsequently appointed Deputy VicePresident Finance Controlling in 1999, Senior Vice-President of Flight Operations in 2001, Senior VicePresident of Human Resources and Change Management in 2003 and Senior Vice-President of Finance in2005. In September 2007, she joined Eutelsat as Chief Financial Officer and member of the Group
Executive Committee. Catherine joined Rexel in April 2013 as Chief Financial Officer and Group Senior
Vice-President. Between May 2014 and February 2017 she has been Deputy Chief Executive Officer ofRexel. Catherine Guillouard, born in 1965, is a graduate of the Institute of Political Studies of Paris and theEcole Nationale d’Administration and she has a PhD of European laws (Pantheon- Sorbonne).

AIRBUS REGISTRATION DOCUMENT 2017 -110

Current Mandates:• Member of the Board of Directors of Airbus SE;• Member of the Board of Directors of ENGIE;• Chief Executive Officer of RATP.
Former mandates for the last five years:• Deputy Chief Executive Officer of Rexel (until February 2017);• Independent Member of the Board of Directors of Technicolor (until August 2013);• Independent Member of the Board of Directors of ADP (until September 2013).

AIRBUS REGISTRATION DOCUMENT 2017 -111

HANS-PETER KEITEL
Curriculum Vitae

70 years old
Director since 2013,
re-elected in 2016
Independent

Hans-Peter Keitel served as President of the Federation of German Industries (BDI) from 2009 to 2012. Prior
to this he served nearly 20 years at Hochtief – first as Director and Board member for International Businessand subsequently from 1992 to 2007 as Chief Executive Officer. From 1992 until 1999 he was Member of the
Executive Board of Hochtief’s mother company, RWE AG. He started his career in 1975 at Lahmeyer
International as a technical advisor and project manager being involved in large scale global infrastructure
projects in over 20 countries. He also advised the arranging banks of the Channel Tunnel Consortium. Mr
Keitel graduated from the Universities of Stuttgart and Munich in Construction Engineering and Economics
and has received a PhD in Engineering from the University of Munich.
Current Mandates:• Member of the Board of Directors of Airbus SE;• Member of the Supervisory Board of RWE AG;• Chairman of the Supervisory Board and the Shareholders Committee of Voith KGaA;• Member of the Supervisory Board of ThyssenKrupp AG;• Deputy Chairman of the Supervisory Board of National-Bank AG.
Former mandates for the last five years:• Member of the Supervisory Board of Deutsche Messe AG (until 2013).

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HERMANN-JOSEF LAMBERTI

62 years old
Director since 2007,
last re-elected in 2017
Independent

Hermann-Josef Lamberti was Member of the Management Board of Deutsche Bank AG from 1999 until 2012 andoperated as the bank’s Chief Operating Officer. As COO he had global responsibility for Human Resources,
Information Technology, Operations and Process Management, Building and Facilities Management as well as
Purchasing. He joined Deutsche Bank in Frankfurt in 1998 as Executive Vice President. From 1985, he held various
management positions within IBM, working in Europe and the United States, in the fields of controlling, internal
application development, sales, personal software, marketing and brand management. In 1997, he was appointed
Chairman of the Management of IBM Germany. Mr Lamberti started his career in 1982 with Touche Ross in Toronto,
before joining the Chemical Bank in Frankfurt. He studied Business Administration at the Universities of Cologne
and Dublin, and graduated with a Master’s degree.
Current Mandates:•
Member of the Board of Directors of Airbus SE;•
Member of the Board of Trustees of Institute for Law and Finance Frankfurt;•
Member of the Advisory Board of Wirtschaftsinitiative FrankfurtRheinMain e.V.;•
Member of the Board of Trustees of Johann Wolfgang Goethe-Universität Fachbereich Wirtschaftswissenschaften;•
Member of the Board of Trustees of Frankfurt Institute for Advanced Studies (FIAS) of Goethe-Universität;•
Member of the Supervisory Board of ING Group N.V.;•
Senior Business Advisor of Advent International GmbH;•
Owner / Managing Director of Frankfurt Technology Management GmbH;•
Chairman of the Supervisory Board of Addiko Bank AG.
Former mandates for the last five years:•
Member of the Board of LDM – Lefdal Data Mine, AS, Maloy, Norway (until December 2017);•
Member of the Board of Stonebranch INC., Alpharetta, Georgia, USA (until June 2017);•
Member of the Supervisory Board Open-Xchange AG (until June 2016);•
Member of the Advisory Board of Barmenia Versicherungen Wuppertal (until December 2014);•
Member of the Managing Committee of Institut für Wirtschaftsinformatik der HSG Universität St. Gallen (until December2013);•
Member of the Board of Trustees of Frankfurt International School e.V (until December 2013);•
Member of the University Council of University of Cologne (until June 2013);•
Member of the Steering Committee and of the Federal Committee Wirtschaftsrat der CDU e.V. (until June 2013);•
Member of the Supervisory Board of Carl Zeiss AG (until March 2013);

AIRBUS REGISTRATION DOCUMENT 2017 -

113MARÍA AMPARO MORALEDA MARTÍNEZ
Curriculum Vitae

53 years old
Director since 2015
Independent

Amparo Moraleda graduated as an industrial engineer from the ICAI (Escuela Técnica Superior de Ingeniería
Industrial) Madrid and holdsa PDG from IESE Business School in Madrid. Between January 2009 andFebruary 2012, she was Chief Operating Officer of Iberdrola SA's International Division with responsibility for
the United Kingdom and the United States. She also headed Iberdrola Engineering and Construction fromJanuary 2009 to January 2011. Previously, she served as General Manager of IBM Spain and Portugal(2001-2009). In 2005 her area of responsibility was extended to encompass Greece, Israel and Turkey as
well. Between 2000 and 2001, she was executive assistant to the chairman and CEO of IBM Corporation.
From 1998 to 2000, Ms Moraleda was General Manager of INSA (a subsidiary of IBM Global Services). From1995 to 1997, she was HR Director for EMEA at IBM Global Services and from 1988 to 1995 held various
professional and management positions at IBM España. Ms Moraleda is also a member of various boards
and trusts of different institutions and bodies. She is member of the academy of “Ciencias Sociales y delMedio Ambiente” of Andalucía (Spain), member of the board of trustees of MD Anderson Cancer Centre in
Madrid, CurArte Foundation in Madrid, member of the International Advisory Board of Instituto de Empresa
Business School and member of the Board of the global alumni association of IESE Business School.
In May 2017 she was inducted as a member of the Spanish Royal Academy of Economic and Financial
Sciences.

Current Mandates:• Member of the Board of Directors of AirbusSE;• Member of the Board of Directors of Vodafone plc;
• Member of the Board of Directors of Solvay SA;• Member of the Board of Directors of Caixabank;• Member of the Supervisory Board of CSIC (Consejo Superior d’Investigaciones Cientificas);• Member of the Advisory Board of SAP Spain;• Member of the Advisory Board of Spencer Stuart Spain.
Former mandates for the last five years:• Member of the Advisory Board of KPMG Spain (until June 2017);• Member of the Board of Directors of Faurecia SA (until October 2017);• Member of the Board of Directors of Meliá Hotels International SA (until June 2015);• Member of the Board of Directors of Alstom SA (until June 2015);• Member of the Board of Corporación Financiera Alba SA (until May 2015).

CLAUDIA NEMAT
Curriculum Vitae

49 years old
Director since 2016
Independent

Born in 1968, Claudia Nemat has been a member of the Board of Management of Deutsche Telekom AG
since October 2011. Mrs. Nemat led the European business of DT until the end of 2016. Since January 2017she has led the new Board area Technology & Innovation.
Before joining Deutsche Telekom AG, Claudia Nemat spent 17 years working for McKinsey & Company
where she was elected Partner in 2000, and Senior Partner (“Director”) in 2006. Among other responsibilities
during her time there, she was Co-leader of the global Technology Sector and led the unit for Europe, theMiddle East and Africa.
Her main areas of expertise include large-scale strategic and operational turnaround and transformation
programs, digital transformation and industrial politics. Mrs. Nemat has worked in numerous European
countries as well as North and South America. She was a member of the Supervisory Board of Lanxess AG
from 2013 until 2016. Mrs. Nemat has been a member of the Board of Directors of Airbus and a member of
the Supervisory Board of Airbus Defence and Space GmbH since May 2016.
Claudia Nemat studied physics at University of Cologne, where she has also taught at the department of
Physics and Mathematics.

Current Mandates:• Member of the Board of Directors of Airbus SE;• Member of the Board of Directors of Airbus Defence and Space GmbH;• Member of the Management Board of Deutsche Telekom AG;• Chairperson of the Supervisory Board of Deutsche Telekom IT GmbH (related to Deutsche Telekom);• Member of the University Council of University of Cologne.
Former mandates for the last five years:

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114

•
•
•
•

Chairperson and Member of the Board of Buyln (related to Deutsche Telekom) (until January 2017);
Member of the Board of OTE (related to Deutsche Telekom) (until January 2017);
Member of the Supervisory Board of LANXESS AG (until May 2016);
Director of EE Limited (UK) (related to Deutsche Telekom) (until 2014).

SIR JOHN PARKER
Curriculum Vitae
Sir John Parker is Chairman of Anglo American PLC, Chairman of Pennon PLC, Non- Executive Director ofCarnival PLC and Carnival Corporation. He has completed his term 2011-2014 as President of the Royal
Academy of Engineering. He stepped down as Chairman of National Grid PLC in December 2011. His career
has spanned the engineering, shipbuilding and defence industries, with some 25 years’ experience as CEO
including Harland & Wolff and the Babcock International Group. He also chaired the Court of the Bank ofEngland between 2004 and 2009. Sir John Parker studied Naval Architecture and Mechanical Engineering at
the College of Technology, Queens University, Belfast.
75 years old
Director since 2007,
last re-elected in 2016
Independent

Current Mandates:• Member of the Board of Directors of Airbus SE;• Director of Carnival PLC and Carnival Corporation;• Chairman Anglo American PLC;
• Chairman Pennon Group PLC;
• Director of White Ensign Association Ltd.;• Visiting fellow of the University of Oxford.
Former mandates for the last five years:• Deputy Chairman of D.P. World (Dubai) (until July 2015);• President of the Royal Academy of Engineering (until September 2014).

AIRBUS REGISTRATION DOCUMENT 2017 -115

CARLOS TAVARES
Curriculum Vitae
Carlos Tavares is a graduate of École Centrale Paris. He held a number of different positions with the
Renault Group from 1981 to 2004 before joining Nissan. In 2009, he was appointed Executive Vice
President, Chairman of the Management Committee Americas and President of Nissan North America.
He was named Group Chief Operating Officer of Renault in 2011. Since 1 January 2014, he has joined theManaging Board of PSA Peugeot Citroën. He was named Chairman of the Managing Board since 31 March2014.
Current Mandates:• Member of the Board of Directors of Airbus SE;• Director of Banque PSA Finance;• Director of Faurecia SA;• Chairman of the Board of Directors of Peugeot Citroën Automobiles SA;• Member of the Board of Directors of Total Group.

59 years old
Director since 2016
Independent

Former mandates for the last five years:• Manager of Bed&Breakfast in Lisbon (until March 2015);• Director of PCMA Holding B.V. (until October 2014);• Member of the Managing Board of Nissan Alliance (until August 2013);• Chief Operating Officer of Renault (until August 2013);• Director of Renault Nissan B.V. (until August 2013);• Director of AvtoVAZ (until August 2013);• Director of Alpine – Caterham (until August 2013).

JEAN-CLAUDE TRICHET

75 years old

Curriculum Vitae
Jean-Claude Trichet was President of the European Central Bank, of the European Systemic Risk Board andof the Global Economy meeting of Central Bank Governors in Basel until the end of 2011. Previously, he wasin charge of the French Treasury for six years and was Governor of Banque de France for ten years. Earlier
in his career, he held positions within the French Inspection Générale des Finances, as well as the Treasury
department, and was advisor to the French President for microeconomics, energy, industry and research(1978-1981). Mr Trichet graduated from the École des Mines de Nancy, the Institut d’Études Politiques deParis and the University of Paris in Economics, is a Doctor Honoris Causa of several universities and analumnus of the École Nationale d’Administration.

Director since 2012,
last re-elected in 2016
Independent

Current Mandates:• Member of the Board of Directors of Airbus SE;• President of JCT Conseil, Paris;• Honorary Governor of Banque de France;• Honorary Chairman of the G30, Washington D.C. (non-profit organisation);• Chairman of the Board of Directors of the BRUEGEL Institute, Brussels(non-profit organisation);• European Chairman of the Trilateral Commission (non-profit organisation).
Former mandates for the last five years:• Chairman and CEO of G30, Washington D.C. (non-profit organisation) (until December 2016);• President of SOGEPA -Société de Gestion de Participations Aéronautiques- (until 2013).

Independent Directors
The Independent Directors appointed pursuant to the criteria of independence set out above are Denis Ranque, Ralph Crosby,
Catherine Guillouard (from AGM 2016), Hans-Peter Keitel, Hermann-Josef Lamberti, Lakshmi N. Mittal, Maria Amparo Moraleda
Martinez, Claudia Nemat (from AGM 2016), Sir John Parker, Carlos Tavares (from AGM 2016) and Jean-Claude Trichet.

Prior Offences and Family Ties
To the Company’s knowledge, none of the Directors (in either their individual capacity or as Director or senior manager of any of theentities listed above) has been convicted in relation to fraudulent offences, been the subject of any bankruptcy, receivership or
liquidation, nor been the subject of any official public incrimination and/or sanction by a statutory or regulatory authority, nor beendisqualified by a court from acting as a Member of the administrative, management or supervisory bodies of any issuer or conduct of

AIRBUS REGISTRATION DOCUMENT 2017 -116

affairs of any company, during at least the last five years. As of the date of this document, there are no family ties among any of the
Directors.

(iii) Operation of the Board of Directors in 2017
Board of Directors Meetings
The Board of Directors met nine times during 2017 and was regularly informed of developments through business reports from theCEO, including progress on the strategic and operational plans. The average attendance rate at these meetings was 91%.
Throughout 2017, the Board of Directors reviewed and discussed the technical and commercial progress of significant new and running
programmes of the commercial aircraft business, Defence and Space as well as Helicopters. This comprised inter alia the remedy of thetechnical issues hampering the ramp-up of the A400M and the A320neo programmes as well as the efforts to restore the market of theSuper Puma helicopter programme after the safety issues due to accidents. In addition, the development of the A330neo, the ramp-up
and extension of the A350XWB and the future of the A380 programmes were closely monitored; in the Defence and Space area thiscomprised the development of unmanned aerial systems as well as the space business’ next generation launcher Ariane 6 and the
OneWeb satellites constellation programme.
Last year’s off-site Board meeting in September in Hamburg was dedicated to the review of the division and product strategies and therelated business developments as well as the overall strategy of Airbus. The Board of Directors seized the opportunity to visit the A320
final assembly and A350 subassembly facilities as well as the A350 Customer Definition Center and the Center of Applied Aeronautical
Research.
In 2017, the Board of Directors continued to support the digitalisation initiative, which was started in 2015 to enhance Airbus ability toidentify and capitalise on innovative and transformational technologies and business models. The reorganisation and refocusing of the
CTO department on its fundamental tasks of guiding and coordinating overall activities, developing group-wide roadmaps /demonstrators as well as technical expertise and blue-sky research was successfully pursued and delivered already promising results.
The merger of Airbus Group and Airbus brought an overhaul of the corporate set-up, simplifying the company’s governance, eliminating
redundancies and creating further efficiencies, while at the same time driving further integration of the entire group.
Moreover, the Board of Directors reviewed Airbus’ financial results and forecasts and put specific emphasis on Enterprise Risk
Management supported by a strengthened internal audit organization. The corporate social responsibility initiatives were further focused
and renamed “Responsibility and Sustainability” (R&S).
A substantial share of the Board activities was dedicated to compliance matters. Among other areas, emphasis was put on further
strengthening the Airbus compliance programme, building on the ‘Business Development Support Initiative’ which was started in 2015.
The comprehensive training programme set up last year continued to further raise awareness, to reduce risks and more generally to
improve the culture of integrity of Airbus. As a consequence of the SFO/PNF investigations, Airbus has transformed the Ad-Hoc
Committee that dealt initially with the investigations into a regular Ethics and Compliance Committee with a wider remit to oversee ethics
and compliance. The Ethics and Compliance Committee will continue to closely monitor the investigations in view to showing theauthorities the committee’s thorough and independent approach. In addition, the “Independent Compliance Review Panel”, composed ofrenowned international experts, was introduced to oversee and benchmark the respective activities.
The Board of Directors also decided to perform an external evaluation of the top two tiers of the Executive management in order toreinforce its appreciation of the Company's strength in succession planning and ensure that the right development plans are in place. In
particular, the Board has launched an in-depth succession planning review for the top management of the company; following the firstannouncements made in December 2017, this process will continue in 2018 with the objective of being ready for the AGM to be held in
2019, given the CEO’s announcement that he does not intend to seek extension of his mandate beyond this date.

Board Evaluation 2017
As a matter of principle, the Board of Directors has decided that a formal evaluation of the functioning of the Board of Directors and its
Committees with the assistance of a third-party expert is conducted every three years. In the year succeeding the outside evaluation,
the Board of Directors performs a self-evaluation and focuses on the implementation of the improvement action plan resulting from thethird-party assessment. In the intervening second year, the General Counsel, being also the Secretary of the Board, issues aquestionnaire and consults with Board Members to establish an internal evaluation which is then discussed with Board Members.
The year 2017 marked the beginning of a new three-year cycle. In September 2017, the Board of Directors therefore carried out anexternal evaluation based on a questionnaire issued by a third-party expert and circulated to each Board Member.
The Board of Directors was satisfied overall with the continuous progress made during the first three years Board review cycle and has
decided to start a new review cycle with the support of Heidrick & Struggles as the third-party expert.
Each one of the Board Members had an in-person discussion with the third-party expert to cover governance, effectiveness andcomposition of the Board of Directors and the committees, areas of expertise and working process of the Board of Directors,
relationships between the members of the Board of Directors, the Chairman, the management, shareholders and stakeholders as well
as scope and composition of topics and preparation for the future.
Following the last Board review, the Board of Directors spent additional time on risk management, strategy and other topics, such as
benchmarking on competitors, products and digital transformation. Notable progress has also been made in discussions on strategy,
risk management and digital transformation, with strong leadership coming from the CEO and the executive team.
In the 2017 evaluation, the Board Members confirmed the need to continue working hard to reinforce cohesiveness as well as teamwork within the Board and its Committees, in particular in challenging times and under significant pressure. Some areas of improvement

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require more attention from the Board such as: corporate and social responsibility, employee engagement, industrial strategy andoperations efficiency and succession planning.
Board Members notably valued balance of powers, open debates within the Board of Directors, positive contribution of the Board
Committees, creation and performance of the new Ethics and Compliance Committee and constructive and challenging interactions
between the Board of Directors and the management, while highlighting that there remains room for further progress in this area. The
Board of Directors has also identified ways to improve effectiveness in the preparation of Board meetings, as well as the quality andlevel of information provided to the Board Members prior to and between Board meetings. The induction programme for new Board
Members and off-site Board meetings are also appreciated.
The Board will increase efforts to evaluate the performance and competitiveness of the Company, increase anticipation in a challenging
environment and prepare for the future, notably from a leadership standpoint.
In addition, the Board Members highlighted the necessity to continue with the process of the staggering Board principle, decided at the2016 Annual General Meeting. This is intended to further develop the diversity of expertise, gender and nationalities within the Board of
Directors.

4.1.1.2

Board Committeesa) The Audit Committee
The Audit Committee has four (4) Members and is chaired by an Independent Director who is not the Chairman of the Board of
Directors or a current or former Executive Director of the Company. The Chaiman of the Audit Committee shall be, and the othermembers of the Audit Committee may be, financial experts with relevant knowledge and experience of financial administration andaccounting for listed companies or other large legal entities.
Pursuant to the Board Rules, the Audit Committee, which is required to meet at least four times a year, makes recommendations to
the Board of Directors on the approval of the annual financial statements and the interim accounts (Q1, H1, Q3), as well as theappointment of external auditors and the determination of their remuneration. Moreover, the Audit Committee has responsibility forverifying and making recommendations to the effect that the internal and external audit activities are correctly directed, that internal
controls are duly exercised and that these matters are given due importance at meetings of the Board of Directors. Thus, it
discusses with the auditors their audit programme and the results of the audit of the accounts, and it monitors the adequacy ofAirbus’ internal controls, accounting policies and financial reporting. It also oversees the operation of Airbus’ Enterprise Risk
Management (“ERM”) system and the ethics and compliance organisation. For further details in this regard, see “— 4.1.3.:
Enterprise Risk Management System”. Please refer to Annex E of the Board Rules for a complete list of responsibilities of the Audit
Committee.
The Chairman of the Board of Directors and the CEO are invited to attend meetings of the Audit Committee. The Chief Financial
Officer (“CFO”) and the Head Accounting Record to Report are requested to attend meetings to present management proposals andto answer questions. Furthermore, the Head of Corporate Audit & Forensic and the Chief Ethics and Compliance Officer are
requested to report to the Audit Committee on a regular basis.
In 2017, it met six times with an average attendance rate of 83%, it discussed all of the above-described items during the meetingsand it fully performed all of the above-described duties.

b) The Ethics and Compliance Committee
To reinforce oversight of ethics and compliance matters at the Board of Directors level, a dedicated Ethics and Compliance
Committee (“E&C Committee” or “ECC”) was established in 2017 and the Board Rules have been amended accordingly. The E&C
Committee replaced a temporary Ad-Hoc Committee that was created in 2016 in respect of similar matters. Pursuant to the Board
Rules the main mission of the E&C Committee is to assist the Board in monitoring Airbus’ culture and commitment to ethicalbusiness and integrity. This committee is empowered to oversee Airbus’ ethics and compliance programme, organisation andframework for an effective ethics and compliance governance (including all associated internal policies, procedures and controls),
which includes the areas of money laundering and terrorist financing, fraud, bribery and corruption, trade sanctions and export
control, data privacy, procurement and supply chain compliance and anti-competitive practices.
The E&C Committee has five (5) Members and is chaired by any of its members. Each member should be an Independent Director.
Both the chairman of the Audit Committee and the chairman of the RNGC is a member of the E&C Committee.
The E&C Committee makes recommendations to the Board of Directors and its Committees on all ethics and compliance-related
matters and is responsible for providing to the Audit Committee any necessary disclosures on issues or alleged ethical andcompliance breaches that are financial and accounting-related. The E&C Committee maintains a reporting line with the Chief Ethics
and Compliance Officer, who is requested to provide periodic reports on its activities.
The Chairman of the Audit Committee and the Chairman of the RNGC are members of the E&C Committee. Unless otherwise
decided by the E&C Committee, the CEO is invited to attend the meetings. From time to time, independent external experts and theIndependent Compliance Review Panel are also invited to attend E&C Committee meetings.
The E&C Committee is required to meet at least four times a year. In 2017, the E&C Committee and its predecessor, the Ad-Hoc
Committee, met in total ten times with an average attendance rate of 85%. All of the above described items were been discussed
during the meetings. Both, the E&C Committee and the temporary Ad-Hoc Committee fully performed all the above-described duties.

c) The Remuneration, Nomination and Governance Committee
The RNGC has four (4) Members, with geographic diversity. Each Member of the RNGC is an Independent Director. One Member ofthe RNGC is a Director who is appointed to the Board of Directors on the basis of the French State Security Agreement. One

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Member of the RNGC is a Director who is appointed to the Board of Directors on the basis of the German State Security Agreement.
The Board of Directors, by a Simple Majority (defined below), appoints the chair of the RNGC, who may not be any of the following:•

the Chairman of the Board of Directors;•

a current or former Executive Director of the Company;•a Non-Executive Director who is an Executive Director with another listed company; or•a Director appointed to the Board of Directors on the basis of the French State Security Agreement or the German State Security
Agreement.

Pursuant to the Board Rules, besides its role described in section 4.1.1 above, the RNGC consults with the CEO with respect toproposals for the appointment of the Members of the Executive Committee, and makes recommendations to the Board of Directors
regarding the appointment of the Secretary to the Board of Directors. The RNGC also makes recommendations to the Board of
Directors regarding succession planning (at Board, Executive Committee and Senior Management levels), remuneration strategies
and long-term remuneration plans. Furthermore the Committee decides on the service contracts and other contractual matters in
relation to the Members of the Board of Directors and the Executive Committee. The rules and responsibilities of the RNGC havebeen set out in the Board Rules.
The Chairman of the Board of Directors and the CEO are invited to attend meetings of the RNGC. The Chief Human Resources
Officer (“CHRO”) is requested to attend meetings to present management proposals and to answer questions.
In addition, the RNGC reviews top talents, discusses measures to improve engagement and to promote diversity, reviews the
remuneration of the Executive Committee Members, the Long-Term Incentive Plans (“LTIP”), and the variable pay for the previous
year.
Finally, the RNGC performs regular evaluations of the Company’s corporate governance and makes proposals for changes to theBoard Rules or the Articles of Association.
The guiding principle governing management appointments within Airbus is that the best candidate should be appointed to theposition (“best person for the job”), while at the same time seeking to achieve a balanced composition with respect to gender,
experience, national origin, etc. The implementation of these principles should, however, not create any restrictions on the diversity
within the Company’s executive management team.
The RNGC is required to meet at least four times a year. In 2017, it met nine times with an attendance rate of 92%, it discussed allof the above described items during the meetings and it fully performed all of the above described duties.

4.1.1.3

The Executive Committeea) Nomination and Composition
The Executive Committee of Airbus (the “Executive Committee”) is chaired by the Chief Executive Officer and its members areappointed on the basis of their performance of their individual responsibilities as well as their respective contribution to the overall
interest of Airbus.
The CEO proposes all of the Members of the Executive Committee for approval by the Board of Directors, after consultation with (i)the Chairman of the RNGC and (ii) the Chairman of the Board of Directors, applying the following principles:•the preference for the best candidate for the position;•

the maintenance, in respect of the number of Members of the Executive Committee, of the observed balance among thenationalities of the candidates in respect of the location of the main industrial centres of Airbus (in particular among the nationalsof the four Member States of the EU where these main industrial centres are located); and•at least 2/3 of the Members of the Executive Committee, including the CEO and the Chief Financial Officer (“CFO”), being EU
nationals and residents.

The Board of Directors determines, by simple majority vote, whether to approve all of the Members of the Executive Committee as
proposed by the CEO.

b) Role of the Executive Committee
The CEO is responsible for executing the strategy, as approved by the Board of Directors, and for managing the day-to-day
operations of Airbus’ business and he shall be accountable for its proper execution. For this purpose, the CEO seeks regularly
advice from its core executive management team ("EMT"), which comprises some of the Executive Committee Members, on Airbuswide topics such as corporate matters or major ongoing projects as well as on business development and performance improvement
opportunities.
The Executive Committee further supports the CEO in performing these tasks, ensuring proper alignment of the Company’s
management beyond the EMT. The Executive Committee Members shall jointly contribute to the overall interests of the Company, in
addition to each Member’s individual operational or functional responsibility within Airbus. The CEO endeavours to reach consensus
among the Members of the Executive Committee. In the event a consensus is not reached, the CEO is entitled to decide the matter.

c) The Executive Committee in 2017
The Executive Committee comprises the heads of the Divisions and key functions of the Company, and is dedicated to exchange
and align on important matters such as:

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119

•

Appointment by the heads of the Airbus Divisions and functions of their management teams;•

Major investments/divestments;•

Settling up and control of the implementation of the strategy for Airbus’ businesses;•

Airbus policy matters and management and organisational structure of the business;•

Definition of the Company’s financial performance and business performance strategy and targets;•

Business issues, including the operational plan of the Company and its Divisions.

It is also the forum where the information or requests for approval destined for the Board are discussed and approved. The CEO is
the only Executive Director within the Board of Directors and represents the Company on the Board. But, depending on therespective topic, he usually asks the responsible Executive Committee Member to join him in the Board for presenting the financials(CFO), programme/product topics (Division head), HR matters (CHRO) or any other topic where a specialist is needed. Thisapproach allows that the Board Members get to know the Executive Committee Members equips them to make judgements when it
comes to decisions about key positions.
The Executive Committee met four times during 2017.

COMPOSITION OF THE EXECUTIVE COMMITTEE AT THE END OF 2017

Name

Start of term

Principal Occupation

Tom Enders

2012

Chief Executive Officer Airbus

Fernando Alonso

2015

Head of Military Aircraft Airbus Defence and Space

Thierry Baril2012

Chief Human Resources Officer Airbus & Airbus Commercial AircraftFabrice Brégier

2012

Chief Operating Officer Airbus and President Airbus Commercial
Aircraft

Guillaume Faury

2013

Chief Executive Officer Airbus Helicopters

John Harrison

2015

Group General Counsel Airbus

Dirk Hoke2016

Chief Executive Officer Airbus Defence and SpaceJohn Leahy

2012

Chief Operating Officer – Customers Airbus Commercial Aircraft

Allan McArtor

2014

Chief Executive Officer Airbus North America

Klaus Richter2015

Chief Procurement Officer Airbus & Airbus Commercial Aircraft

Harald Wilhelm

2012

Chief Financial Officer Airbus

Tom Williams

2015

Chief Operating Officer Airbus Commercial Aircraft

Note: Status as of 1 January 2018. The professional address of all Members of the Executive Committee for any matter relating to Airbus is Mendelweg 30,2333 CS Leiden, the Netherlands.

Tom Enders – Chief Executive Officer Airbus
(see

above

under

“--

4.1.1.1

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Board

120

of

Directors”)

Fernando Alonso – Head of Military Aircraft Airbus Defence and Space
Fernando Alonso was named as Head of Military Aircraft, Airbus Defence and Space on 29 January 2015 and took up the positionon 1 March 2015. He is a member of the Airbus Defence and Space Executive Committee and on 1 July 2015 was appointed to
the Executive Committee. Previously he was Senior Vice President Flight and Integration Tests, Head of Flight Operations since
September 2007, and, before that, Vice President Flight Test Division since February 2002.
Fernando Alonso began his professional career with McDonnell Douglas in Long Beach, California in 1979 as a performanceengineer in the company’s flight test department. Three years later, he joined Airbus as a performance engineer in the flightdivision.
While remaining with Airbus, he graduated as a flight test engineer at l’Ecole du Personnel Navigant d’Essais et de Réception(EPNER) in 1990, and then became a flight test engineer responsible for aircraft performance of the A330, A340 and A321.
Between 1995 and 2002, Fernando was responsible for the development of flight controls and handling qualities during the flighttest programmes of the A319, A330-200, A340-500 and A340-600. Subsequently, he was deeply involved in the organisation andcoordination of the flight test campaign of the A380.
During a career at Airbus that has spanned more than 30 years, Fernando has accumulated more than 4,300 hours of flight tests.
He was a flight test engineer on the maiden flights of A340-200 in 1992, the A319 in 1997, the A380 in April 2005 and mostrecently the A350 XWB in June 2013.
Born in Madrid, Spain in 1956, he obtained a degree from the Polytechnic University of Aeronautical Engineers in Madrid in 1979.
He is a keen skier and tennis player. He and his family are also actively involved in the French charity Pour un Sourire d’Enfant,fundraising and organising summer camps for underprivileged children who live in a municipal dump in Phnom Penh, Cambodia.

Thierry Baril –Chief Human Resources Officer Airbus & Airbus Commercial AircraftThierry Baril was appointed Chief Human Resources Officer of Airbus on 1 June 2012. In addition, Baril continues to serve as
Airbus Commercial Aircraft Chief Human Resources Officer.
Thierry Baril joined Airbus Commercial Aircraft in 2007 as Executive Vice President, Human Resources, and Member of the Airbus
Commercial Aircraft Executive Committee, with responsibility for defining and implementing a company-wide Human Resources
strategy, enhancing integration and employee engagement. He oversaw the development of key skills and competences to support
business growth and greater internal mobility. One of his main achievements was the transformation of the company in the areasof leadership culture and diversity, having played a key role in the implementation of "Power8" and Airbus' internationalisation
strategy.
Prior to this, Thierry Baril was Executive Vice President Human Resources at Eurocopter – now Airbus Helicopters – and memberof the Eurocopter Executive Committee from January 2003. In this position, Baril managed the company’s Human Resources
activities globally, including the implementation of Human Resources policies across Eurocopter’s European sites and its 15
subsidiaries worldwide. He was instrumental in the implementation of “Vital”, a programme which transformed Eurocopter as abusiness.
Thierry Baril started his career in 1988 as Deputy Human Resources Director at Boccard SA, and transferred to Laborde & KupferRepelec, a subsidiary of GEC ALSTHOM, as Human Resources Manager in 1991.
From 1995, Thierry Baril held roles as Human Resources Director of the Alstom Energy Belfort site and Vice President of Human
Resources of the Alstom Energy Group.
Following on from his experience at Alstom Energy, in 1998 Thierry Baril became Managing Director of Human Resources for
Europe for GE (General Electric) at their Belfort Headquarters, followed by Vice President of Human Resources at Alcatel Space’s
Headquarters in Toulouse from 2000.

Fabrice Brégier – Chief Operating Officer Airbus and President Airbus Commercial AircraftFabrice Brégier was appointed President of Airbus Commercial Aircraft & Chief Operating Officer Airbus on 1 January 2017. He
previously was the President and Chief Executive Officer of the Airbus Commercial Aircraft Division since June 2012. In 2017, Mr
Brégier was a member of the Executive Committee.
He started his career in 1983 as a test engineer at the Creys-Malville nuclear power station, becoming sales manager for Péchiney(Japan) in 1984. In 1986 he joined the DRIRE Alsace (Ministry of Industry) and was then appointed Director of Economic andFinancial Affairs with the Ministry of Agriculture in 1989.
Having been Advisor to several French Ministers, Mr. Brégier joined Matra Défense in 1993 as Chairman of the Apache MAW GIE(co-operation with Dasa) and Chairman of the Eurodrone GIE (with STN-Atlas). In 1996 he was appointed Director of Stand-Off
activities (Apache, Scalp EG/Storm Shadow) in what had become Matra BAe Dynamics.
In 1998, Mr. Brégier became CEO of Matra BAe Dynamics. He was appointed CEO of MBDA, the leading European missile
systems company that was created in 2001 by Aerospatiale Matra, British Aerospace and Finmeccanica. In 2003, Fabrice Brégier
became President and CEO of the Eurocopter Group and was appointed Head of EADS’ Eurocopter Division in June 2005.
Mr. Brégier was appointed Airbus Chief Operating Officer (COO) in October 2006. As a Member of the EADS Executive
Committee, he was commissioned by Louis Gallois to improve the overall operational performance of the Group. His
responsibilities included the company’s wide-ranging restructuring and change programme (Power8), the Executive Committee
functions Operations, Engineering and Procurement, and the A350 XWB programme.
Mr. Brégier graduated from the Ecole Polytechnique in 1980 and from the Ecole des Mines. He was born in 1961 in Dijon, France.

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Guillaume Faury – CEO Airbus Helicopters
Guillaume Faury became Chief Executive Officer (CEO) of Airbus Helicopters – formerly Eurocopter – on 1 January 2014 and is amember of the Executive Committee.
Prior to assuming this position, he had been CEO of Eurocopter since May 2013. He joined Eurocopter from Peugeot S.A., where
he had served as Executive Vice President for Research and Development since 2010 and as a Member of the Managing Board
since 2009.
Guillaume Faury, a licensed flight test engineer, served in various senior management functions at Eurocopter from 1998 to 2008
before joining Peugeot S.A. He was Chief Engineer for the EC225/725 programme, Head of the Heavy Helicopter Flight Test
department, Executive Vice President for Commercial Programmes and, ultimately, Executive Vice President for Research &Development. Guillaume Faury also was a member of the Eurocopter Executive Committee.
He started his professional career with the French Defence Procurement Agency DGA, where he was in charge of Tiger helicopter
flight test activities at the Istres Flight Test Centre.
Guillaume Faury, born in February 1968, holds an engineering degree from the Ecole Polytechnique in Paris as well as anaeronautics and engineering degree from the Ecole Nationale Supérieure de l’Aeronautique et de l’Espace in Toulouse.

Dirk Hoke – CEO Airbus Defence and Space
Dirk Hoke is the designated Chief Executive Officer (CEO) of Airbus Defence and Space as of 1 April 2016. He started on 1
January 2016 as Deputy CEO. He is a member of the Executive Committee.
Dirk Hoke joined Airbus from Siemens, where he had been CEO of the Large Drives Business Unit since 2014. He has held
various executive-level positions at Siemens since becoming CEO of the Cluster Western & Central Africa in 2008. His careerspans 21 years and five continents.
In 1994, Dirk Hoke began his professional career as R&D Engineer for process and software analysis in the automotive industry
at Renault in Paris. In 1996, he joined Siemens through an international trainee programme with assignments in Germany,
Argentina and Austria. He then held various management posts in the Transportation Systems Division based in Germany. He
relocated to Sacramento, USA, as Head of the Transportation Systems restructuring team in 2001.
Dirk Hoke continued his professional career at Siemens as General Manager for the Transrapid Propulsion and Power Supply
Subdivision from 2002 to 2005 including the Shanghai “Maglev” project. He was then promoted to President of Siemens
Transportation Systems China and made Siemens the largest foreign railway supplier in the country.
In 2008, Dirk Hoke moved to Morocco to lead Siemens’ Africa activities. He returned to Germany in 2011 to become the Division
CEO of Industrial Solutions with the special task to build up the services business for the Industry Sector. Afterwards, he wascalled upon to restructure the Large Drives Business Unit.
Dirk Hoke holds a degree in mechanical engineering from the Technical University of Brunswick, Germany. In 2010, Dirk Hokebecame a member of the Young Global Leader Class of the World Economic Forum and in 2013, member of the Baden Baden
Entrepreneur Talks.
Born on 2 April 1969, Dirk Hoke is married with two children.

John Harrison – General Counsel Airbus
John Harrison has been General Counsel since June 2015. Solicitor of the Supreme Court of England & Wales, John Harrison
completed his academic studies at the University of McGill, Montréal, Canada. He holds a Bachelor LLB (Hons) and Masters
LLM of Laws degree.
John Harrison began his career in 1991 at the international law firm Clifford Chance, working consecutively in their London, NewYork and Paris offices.
He joined Airbus then Technip S.A. where he served as Group General Counsel and Member of the Executive Committee from2007-2015.
Prior to joining Technip, Mr Harrison fulfilled various senior legal positions in Airbus companies over a ten year period
culminating his tenure from 2003-2007 as General Counsel of the EADS Defence Division.
John Harrison was born on 12 July 1967 in the United Kingdom.

John Leahy – Chief Operating Officer-Customers Airbus Commercial AircraftJohn Leahy was appointed Chief Operating Officer – Customers of Airbus in July 2005 and assumed the same role for Airbus
Commercial Aircraft effective from 1 January 2017. He continued his responsibilities as Chief Commercial Officer of the Airbus
Commercial Aircraft division, a role he had held since August 1994. His responsibilities covered all commercial activities including
sales, marketing, contracts, business transaction control, asset management, leasing, and business development. Leahy was amember of the Airbus Executive Committee in 2017.
One of Leahy’s greatest achievements was to raise Airbus’ market share from 18% in 1995 to over 50% by the turn of the century,
where it has been maintained over the last 14 years. He also led the commercial activities that resulted in the successful launch of
Airbus next generation flagship aircraft which set the standards for large aircraft in the 21st century, the A380 and the A350 XWB.
Leahy was also a key player in the launch of the A320neo (New Engine Option) family, which has become the fastest selling
aircraft programme in aviation history. He was also instrumental in the launch of the A350 XWB family as well as the A330neo.

AIRBUS REGISTRATION DOCUMENT 2017 -122

John Leahy worked for seven years in marketing at Piper Aircraft before joining Airbus North America in January 1985. He became
Head of Sales in 1988 and then became President of Airbus North America. Leahy was responsible for the penetration of thestrategic North American market, where most major U.S. airlines are now Airbus customers.
John Leahy has an MBA from Syracuse University with concentration in both Finance and Transportation Management and a BA
from Fordham University with a dual major in Communications and Philosophy. He is also a licensed multi-engine commercial pilot
and a former flight instructor. In March 2012, he received one of France’s top civilian awards by being named an Officer of the
Légion d'Honneur, for his services to European and French aviation.

Allan McArtor – CEO Airbus North America
Allan McArtor was Chairman of Airbus Americas, Inc. In this leadership role, McArtor enhanced relationships with Airbus’
customers, suppliers and government representatives. He was instrumental in providing strategy and vision for Airbus companies
throughout the United States, Canada and Latin America. McArtor increased the company’s commercial aviation market sharethroughout the region and established the A320 Aircraft Assembly Line in Mobile, Alabama.
Throughout his career, McArtor has held a series of leadership and senior management positions in the military, civil andgovernment sectors.
Before joining Airbus, he was founder, chairman and CEO of Legend Airlines, a regional airline based at Dallas Love Field, Texas.
President Ronald Reagan appointed McArtor to serve as the Administrator of the FAA from 1987 to 1989.
McArtor served on the senior management team of Federal Express from 1979 to 1987 and 1989 to 1994 first as Senior Vice
President Telecommunications during the development of FedEx’s extensive satellite-based digital network, then as Senior Vice
President Air Operations for FedEx’s global airline.
McArtor was a combat fighter pilot in Vietnam from 1968 to 1969, an Associate Professor of Engineering Mechanics at the Air
Force Academy, and a pilot with the U.S. Air Force’s Thunderbirds Aerial Demonstration Team.
He is a 1964 graduate of the U.S. Air Force Academy (BSE) and holds a master’s degree (MSE) from Arizona State University. He
holds an honorary doctorate degree from Christian Brothers University in Memphis, Tennessee, in recognition of his role inestablishing the School of Telecommunications and Information Systems.

Klaus Richter – Chief Procurement Officer Airbus & Airbus Commercial AircraftKlaus Richter became Chief Procurement Officer for Airbus SE on 1 January 2015. In this function, he is a member of the
Executive Committee and the Airbus Executive Committee. In addition, he serves as the Chairman of the Board of Airbus in
Germany and leads the supervisory board of Premium AEROTEC Group.
He is in charge of procurement across the entire Airbus Commercial Aircraft organisation, having responsibility for developing
strong partnerships with suppliers and ensuring timely delivery of all purchased goods on cost and with the proper quality.
In addition, Richter leads the General Procurement Organisation of Airbus. He coordinates strategic procurement topics, as well as
the development and application of procurement processes and tools across the Group. Richter is also responsible for the Airbus
Regional Sourcing Offices in the U.S., India and China.
In January 2017, Klaus Richter also assumed the role of the president of the German Aerospace Industries Association (BDLI).
Richter joined Airbus in November 2007 as Executive Vice President Procurement for Airbus. Before joining the Group, Richter
was Senior Vice President Materials Purchasing for BMW, based in Munich, Germany. In this position, he was heading all supplier
relations for direct materials and equipment across the entire company.
Klaus Richter began his professional career with McKinsey & Company in 1993 as a management consultant for automotive,
electronics and aerospace businesses and product development, a role which he retained until he joined the BMW Group in 2003
as Head of Purchasing Strategy for production materials.
Richter graduated from the Technical University of Munich where he obtained a doctorate in mechanical engineering in 1991. After
graduation he received a Humboldt scholarship and spent two years as a researcher and teacher at the University of California at
Berkeley.
Born in Munich on 29 September 1964, Klaus Richter is married with two children.

Harald Wilhelm – Chief Financial Officer Airbus
Harald Wilhelm has been Chief Financial Officer of Airbus and Airbus Commercial Aircraft since 1 June 2012 and is a member ofthe Executive Committee.
He has held the role of Airbus Commercial Aircraft CFO since 1 February 2008. Previously, he was Airbus Commercial Aircraft
Chief Controlling Officer and deputy to the Chief Financial Officer, a position to which he was appointed on 1 January 2007.
Prior to this, he was Senior Vice President, Airbus Commercial Aircraft Financial Control, a role he held from 2003 to 2006.
Wilhelm joined Airbus Commercial Aircraft in 2000 as Senior Vice President, Accounting, Tax and Financial Services.
Before joining Airbus, Wilhelm had been Vice President M&A (mergers and acquisitions) at DaimlerChrysler Aerospace from 1998,
where he worked on projects including the integration of Airbus into a single company. Prior to this,he had been Senior Manager M&A at Daimler-Benz Aerospace from 1995 to 1998 and M&A Manager for the company between
1992 and 1993.
Born in April 1966 in Munich, Wilhelm has a degree in Business Studies from Ludwig Maximilians University in Munich.

Tom Williams – Chief Operating Officer Airbus Commercial Aircraft
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Tom Williams was appointed Chief Operating Officer (COO) of Airbus Commercial Aircraft in January 2015. He is responsible forthe overall operations including Engineering, Procurement and Supply Chain Management. Tom is a member of the Executive
Management Team of Airbus and the Airbus Commercial Aircraft Executive Committee.
Previously Tom was Airbus Commercial Aircraft Executive Vice President Programmes, a position he held from July 2005. His rolecovered all Airbus aircraft families and as such, he was in charge of ensuring the profitability of the civil programmes, of leading
the product policy and the development of new products, as well as ensuring proper delivery to the customers. Before being
appointed to this position, he had been Executive Vice President Procurement since February 2004.
After completing an apprenticeship with Rolls-Royce Aero Engines in 1972, Tom went on to carry out increasingly senior roles in a
number of UK manufacturing companies.
In 1992 he was appointed Operations Manager for Cummins Engines, looking after all manufacturing at the company’s 1,200strong Scottish factory. At the start of 1995 he became Manufacturing and Business Group Director for the Sensors activity of
Pilkington Optronics – a joint venture with Thomson CSF of France. Focusing initially on the introduction of ‘lean manufacturing’techniques, he also became involved in integrating Thorn EMI Electro Optics into the business.
Tom joined British Aerospace (now merged with Marconi Electronic Systems to form BAE Systems) in 1997 as Site Director andGeneral Manager at the Prestwick site of the company’s Aerostructures division. Two years later he was appointed Operations
Director – Internal Supply, within the company’s Military Aircraft and Aerostructures Division, then Eurofighter Operations Director
with responsibilities that included manufacturing and other business functions at the Warton and Salmesbury sites of BAE
Systems.
In November 2000, Tom became Managing Director and General Manager of Airbus UK, a position he held until he became
Airbus’ Executive Vice President Procurement in 2004.
Tom was born in 1952 in Glasgow. During his apprenticeship he gained an HNC in Production Engineering and in 1988 an MBAfrom Glasgow University. Married with one daughter, Tom is a keen football supporter and occasional golfer.
Tom received a Commander of the Order of the British Empire (CBE) in January 2011 and was awarded the rank of Knight in the
Légion d’Honneur by the Republic of France in December 2015.
Last year, Tom received the Mensforth Manufacturing Medal from the Institute of Engineering and Technology (IET) for hisachievements as a world-class production engineer, and was awarded the Honorary Degree of Doctor of Business Administrationby the University of the West of England in recognition of his contribution to operations, manufacturing and business.

4.1.2

Dutch Corporate Governance Code, “Comply or Explain”

In accordance with Dutch law and with the provisions of the Dutch Code as amended in 2016, which includes a number of nonmandatory recommendations, the Company either applies the provisions of the Dutch Code or, if applicable, explains and gives soundreasons for their non-application. While the Company, in its continuous efforts to adhere to the highest standards, applies most of thecurrent recommendations of the Dutch Code, it must, in accordance with the “comply or explain” principle, provide the explanations
below.
On 8 December 2016, the Dutch Code was revised; its updated recommendations apply to financial years starting on or after 1 January
2017.
Airbus welcomed the updates to the Dutch Code and supports the emphasis of the revised Dutch Code on topics such as long-termvalue creation and the importance of culture. Airbus already complies with a vast majority of the provisions of the revised Dutch Code.
For the full text of the Dutch Code as well as the New Code, please refer to www.commissiecorporategovernance.nl.
For the financial year 2017 and in respect of compliance with the Dutch Code, the Company states the following:

1. Vice-Chairmanship
Provision 2.3.6 (ii) of the Dutch Code recommends the election of a vice-chairman, to, among other things, deal with the situation
when vacancies occur.
The Board of Directors is headed by the Chairman of the Board of Directors and no vice chairman is appointed. In case of dismissal
or resignation of the Chairman, the Board of Directors shall immediately designate a new Chairman. In Airbus' view there is noneed for the appointment of a vice-chairman to deal with such situations or other circumstances.

2. Termination indemnity
Provision 3.2.3 of the Dutch Code recommends that the maximum remuneration in the event of dismissal of an Executive Board
Member be one year’s salary. Severance pay will not be awarded if the Board membership is terminated early at the initiative of
the Executive Board Member, or in the event of seriously culpable or negligent behaviour on the part of the Executive Board
Member.

The Company foresees a termination indemnity for the sole Executive Board Member, the CEO, equal to one and a half times theannual total target salary in the event that the Board of Directors has concluded that the CEO can no longer fulfil his position asa result of change of the Company’s strategy or policies or as a result of a change in control of the Company. The termination

AIRBUS REGISTRATION DOCUMENT 2017 -124

indemnity would be paid only provided that the performance conditions assessed by the Board of Directors had been fulfilled by
the CEO.

3. Securities in the Company as long-term investment
Provision 3.3.3 of the Dutch Code recommends that non-Executive Directors who hold securities in the Company should keep them asa long-term investment. Furthermore, the Company does not encourage non-Executive Directors to own shares.
The Company does not require its non-Executive Directors who hold shares in its share capital, to keep such shares as a long-term
investment. Although non-Executive Directors are welcome to own shares of the Company, the Company considers it is altogether
unclear whether share ownership by non-Executive Directors constitutes a factor of virtuous alignment with stakeholder interest or
may be a source of bias against objective decisions.

4. Dealings with analysts
Provision 4.2.3 of the Dutch Code recommends meetings with analysts, presentations to analysts, presentations to investors andinstitutional investors and press conferences shall be announced in advance on the Company’s website and by means of press
releases. In addition, it recommends that provisions shall be made for all shareholders to follow these meetings and presentations inreal time and that after the meetings the presentations shall be posted on the Company’s website.
The Company does not always allow shareholders to follow meetings with analysts in real time. However, the Company ensures that all
shareholders and other parties in the financial markets are provided with equal and simultaneous information about matters that
may influence the share price.

5. Pay ratios
Provision 3.4.1 of the Dutch Code recommends that the remuneration report described in Section 4.2.1 – Remuneration Policy – below
should include a description of the pay ratios within Airbus and, if applicable, any changes in these ratios in comparison with theprevious financial year.
The Company wants to ensure a transparent and accurate disclosure of information in its remuneration report. At the date of this
Registration Document, the Company is not able to disclose the exact pay ratio between the CEO and a representative referencegroup determined by Airbus for the 2017 financial year or, to the extent relevant, any changes in these ratios in comparison with the2016 financial year. However, the Company is committed to include this information in its board report for the 2018 financial year.

6. Gender diversity
The Company strives to comply with composition guidelines which mean the Board of Directors would be regarded as being composedin a balanced way if it contained at least 30% women and 30% men. These percentages are based on those included in a Dutch billthat came into force in 2017 in continuation of previous legislation in force stipulating the same percentages.
With the election of Amparo Moraleda in 2015 and the election of Catherine Guillouard and Claudia Nemat in 2016, the proportion of thefemale representation on the Board of Directors is at 25% (against 0% five years ago). The Company will continue to promote
gender diversity within its Board of Directors in accordance with the principles mentioned in section 4.1.1.1 above.

4.1.3

Enterprise Risk Management System

Airbus’ long-term development and production lifecycle make Enterprise Risk Management (“ERM”) a crucial mechanism for both
mitigating the risks faced by the Company and identifying future opportunities.
Applied across the Company and its main subsidiaries, ERM is a permanent top-down and bottom-up process, which is executed
across Divisions at each level of the organisation. It is designed to identify and manage risks and opportunities. A strong focus is put on
the operational dimension due to the importance of Programmes and Operations for Airbus.

ERM is an operational process embedded into the day-to-day management activities of Programmes, Operations andFunctions. The key risks and their mitigations are reported to the Board of Directors through a reporting synthesis,
consolidated on a quarterly basis.
The ERM system is articulated along four axes:•

Anticipation: early risk reduction and attention to emerging risks;•

Speak-up & early warnings;•

Robust risk mitigations;•

Opportunities.

4.1.3.1 ERM Process
The objectives and principles for the ERM system as endorsed by the Board of Directors are set forth in the Company’s ERM Policy andcommunicated throughout Airbus. The Company’s ERM Policy is supplemented by directives, manuals, guidelines, handbooks, etc.
AIRBUS REGISTRATION DOCUMENT 2017 -125

External standards which contribute to the Company’s ERM system include the standards as defined by the International Organisationfor Standardisation (“ISO”).
The ERM process consists of four elements:•

a strong operational process, derived from ISO 31000 – to enhance operational risk and opportunity management;•a reporting process, which contains procedures for the status reporting of the ERM system and the risk/opportunity situation;•a ERM compliance process, which comprises procedures to assess the effectiveness of the ERM system; and•a support process, which includes procedures to maintain and increase the quality of the ERM system.

The ERM process applies to all relevant sources of risks and opportunities that potentially affect the Company’s activities, its businesses
and its organisation in the short-, mid- and long-term. The ERM process is part of the management process and inter-related with theother processes.
All Airbus organisations, including Divisions, subsidiaries and controlled participations, commit to and confirm the effective
implementation of the ERM system. The annual ERM Confirmation Letter issued by each organisation is the formal acknowledgement
about the effectiveness of the ERM system.
For a discussion of the main risks to which Airbus is exposed, see “— Risk Factors”.

4.1.3.2

ERM Governance and Responsibility

The governance structure and related responsibilities for the ERM system are as follows:•

The Board of Directors supervises with support of the Audit Committee the strategy and business risk and opportunities as well as
design and effectiveness of the ERM system;•

The CEO, with the top management, is responsible for an effective ERM system. He is supported by the CFO, who supervises
the Head of ERM, and the ERM system design and process implementation;•

The Head of ERM has primary responsibility for the ERM strategy, priorities, system design, culture development and reporting
tool. He supervises the operation of the ERM system and is backed by a dedicated risk management organisation in the
Company focusing on the operational dimension, early warning and anticipation culture development while actively seeking to
reduce overall risk criticality. The risk management organisation is structured as a cross-divisional Centre of Competence(“CoC”) and pushes for a proactive risk management;•

The management at executive levels has the responsibility for the operation and monitoring of the ERM system in its respective
areas of responsibility and for the implementation of appropriate response activities to reduce risk and seize opportunities,
considering the recommendations of the internal and external auditors.

4.1.3.3 ERM Effectiveness
The ERM effectiveness is analysed by ERM centre of competence (“CoC”), based on ERM reports, confirmation letters, in situ sessions(.e.g., risk reviews), participation to key controls (e.g. major Programme Maturity Gate Reviews).
The combination of the following controls is designed to achieve reasonable assurance about ERM effectiveness:

Organisation

Explanations

Board of Directors /Audit Committee

Regular monitoring
The Board of Directors and the Audit Committee review, monitor and supervise the ERM system.

Top Management

ERM as part of the regular divisional business reviews
Results of the operational risk and opportunity management process, self-assessments and confirmation
procedures are presented by the Divisions or other Airbus’ organisations to top management.

Management

ERM confirmation letter procedure
Entities and department heads that participate in the annual ERM compliance procedures must sign ERM
Confirmation Letters.

ERM CoC

ERM effectiveness measurement
Assess ERM effectiveness by consideration of ERM reports, ERM confirmations, in situ sessions(risk reviews etc.), participation to key controls (e.g. major Programme Maturity Gate Reviews).

Corporate Audit

Continuous monitoring and audits on ERM
Provide independent assurance to the Audit Committee on the effectiveness of the ERM system.

E&C

Alert System
Detect deficiencies regarding conformity to applicable laws and regulations as well as to ethical businessprinciples.

4.1.3.4

Board Declaration

Based on the reports made directly available to the Board of Directors, coming from different processes, audits and controls and theinformation it received from management, the Board of Directors believes to the best of its knowledge that the internal risk management andcontrol system provides reasonable assurance that the financial reporting does not contain any material inaccuracies. This report provides
AIRBUS REGISTRATION DOCUMENT 2017 -126

sufficient insight into any material failings in the effectiveness of the internal risk management and control systems. No matter how welldesigned, the internal risk management and control system has inherent limitations, such as vulnerability to circumvention or overrides of thecontrols in place. Consequently, no assurance can be given that the Company’s internal risk management and system and procedures are or
will be, despite all care and effort, entirely effective.
Based on the Company's current state of affairs, it is justified that the financial statements have been prepared on a going concern basis. The
Board of Directors confirms that to the best of its knowledge this report states the material risks and uncertainties that are relevant to the
expectation of the Company’s continuity for the period of 12 months after the preparation of the report.

4.1.4

Internal Audit

In accordance with Principle 1.3 of the Dutch Code, Airbus Corporate Audit and Forensic assesses and provides objective
assurance on the design and effectiveness of Airbus’s risk management, internal controls and governance systems. This covers threeareas: Risk management processes, both their design and how well they are working; management of those risks classified as ‘key’,including the effectiveness of the controls and other responses to them; and reliable and appropriate assessment of risks and reportingof risk and control status.
Corporate Audit & Forensic engages in the independent and objective corporate assurance activities of internal auditing andforensic investigations. It supports Airbus in improving its operations and accomplishing its objectives by bringing a systematic anddisciplined approach to evaluate and improve the effectiveness of the organisation’s governance, risk management and internal
controls. The function includes a team of forensic specialists who assist Airbus and the Legal and Compliance function by leading
and supporting investigations of compliance allegations.
It is established by direct reporting to the Audit Committee and CEO. Corporate Audit adheres to the Institute of Internal Auditor’s
Definition of Internal Auditing, Code of Ethics and International Standards for the Professional Practice of Internal Auditing as well
as relevant policies and procedures of Airbus. Its framework of operation is set out in the the Airbus Corporate Audit and Forensic
Charter.

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4.2 Interests of Directors and Principal
Executive Officers
4.2.1

Remuneration Policy

The Company’s Remuneration Policy covers all Members of the Board of Directors: the CEO (who is the only Executive Director) andthe other Members of the Board (which is comprised of non-Executive Directors).
It should be noted that although the Policy relating to Executive remuneration only refers to the CEO, these principles are also applied tothe other Members of the Executive Committee, who do not serve on the Board of Directors, and to a large extent to all Executives
across Airbus. Upon proposal by the CEO, the RNGC analyses and recommends, and the Board of Directors decides, the remunerationof the Members of the Executive Committee.
No amendment to the Remuneration Policy (as adopted at the AGM held on 28 April 2016) will be proposed for adoption by theshareholders at the AGM to be held in 2018. The application of the Remuneration Policy in 2017 will be included as a separate agenda
item for discussion at the AGM to be held in 2018To see how the Remuneration Policy was applied in 2017 in respect of the CEO (theonly Executive Member of the Board of Directors)(1), see “— 4.2.1.3 Implementation of the remuneration policy in 2017: CEO”. The
cumulated remuneration of all Executive Committee Members is presented in the “Notes to the IFRS Consolidated Financial Statements— Note 31: Remuneration”.
To see how the Remuneration Policy was applied in 2017 in respect of the non-Executive Members of the Board of Directors, see “—
4.2.1.4 Implementation of the remuneration policy in 2017: Non-Executive Directors”.

4.2.1.1

Executive Remuneration – Applicable to the CEOa) Remuneration Philosophy
The Company’s remuneration philosophy has the objective of providing remuneration that will attract, retain and motivate high-calibre
Executives, whose contribution will ensure that the Company achieves its strategic and operational objectives, thereby providing longterm sustainable returns for all shareholders.
The Board of Directors and the RNGC are committed to making sure that the Executive remuneration structure is transparent andcomprehensible for both Executives and investors, and to ensure that Executive rewards are consistent and aligned with the interests oflong-term shareholders.
Before setting the targets to be proposed for adoption to the Board of Directors, the RNGC considers the financial outcome scenarios ofmeeting performance targets, as well as of maximum performance achievements, and how these may affect the level and structure of
the Executive remuneration.

b) Total Direct Compensation and Peer GroupThe Total Direct Compensation for the CEO comprises a Base Salary, an Annual Variable Remuneration (“VR”) and a Long-Term
Incentive Plan (“LTIP”). The three elements of the Total Direct Compensation are each intended to comprise one-third of the total,
assuming the achievement of performance conditions is 100% of target.
The level of Total Direct Compensation for the CEO is set at the median of an extensive peer group. The benchmark is regularly
reviewed by the RNGC and is based on a peer group which comprises:•

Global companies in Airbus’ main markets (France, Germany, UK and US); and•Companies operating in the same industries as Airbus worldwide.

(1)

The cumulated remuneration of all Executive Committee Members is presented in the “Notes to the IFRS Consolidated Financial Statements— Note 31: Remuneration”.
AIRBUS REGISTRATION DOCUMENT 2017 -128

The elements of the Total Direct Compensation are described below:

Remuneration Element
Base Salary

Main Drivers

Performance Measures

Target and Maximum

Reflects market value of position.

Not applicable

1/3 of Total Direct Compensation(when performance achievement
is 100% of target)

Collective (50% of VR):
divided between EBIT1 (45%);
Free Cash Flow2 (45%) and RoCE
(10%).

VR

The VR is targeted at 100%of the Base Salary for the CEO
and, depending on the
Rewards annual performance
performance assessment, ranges
based on achievement ofCompany performance measures Individual (50% of VR): Achievementfrom 0%and individual objectives.
to 200% of target.
of annual individual objectives,
The VR is capped at 200%
divided between Outcomes andof the Base Salary.
Behaviour.

LTIP

The original allocation to the CEOis capped at 100% of the Base
Salary at the time of grant.
Since 2012, the following caps
apply to Performance Units only:
Vesting ranges from 0% to 150%
overall payRewards long-term commitment of initial grant, subject toperformanceout
and Company performance, and over a three-year period. In principle,
is capped at
engagement on financial targets
no vesting if cumulative negative
a maximum
subject to cumulative
EBIT. If cumulative EBIT is positive,of 250% of
performance over a three-year
vesting from 50% to 150% of grant
the original
period.
based on EPS (75%) and Free
value
Cash Flow (25%)
at the date of
grant.
The value that could result fromshare price increases is capped at200% of the reference share priceat the date of grant.

Policy from 2016 (approved by 2016 AGM)
The RNGC regularly benchmarks the CEO’s Total Direct Compensation (Base Salary, Annual Variable Remuneration and LTIP) against
an extensive peer group. The relevant peer group was composed with the assistance of an independent consultant Willis Towers
Watson, and comprised 31 companies having comparable economic indicators such as revenues, number of employees and market
capitalisation. Financial institutions were excluded from the peer group (for further details, see “— 4.2.1.4 Implementation of theRemuneration Policy in 2017: CEO”).
Following the change approved at the AGM in 2016, and as illustrated in the table below, the structure of the CEO’s Total Direct
Compensation will remain unchanged in 2018. Indeed, the on-target levels of VR and LTIP will each amount to 100% of the CEO’s Base
Salary.

SCENARIOS CEO TOTAL DIRECT COMPENSATION

1 Airbus continues to use the term EBIT (Earnings before interest and taxes). It is identical to Profit before finance cost and income taxes as defined by

IFRS Rules.
2 Airbus defines the alternative performance measure Free Cash Flow as the sum of (i) cash provided by operating activities and (ii) cash used forinvesting activities, minus (iii) change of securities, (iv) contribution to plan assets of pension schemes and (v) realised foreign exchange results on treasury
swaps. It is a key indicator which allows the Company to measure the amount of cash flow generated from operations after cash used in investing activities.

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Indications are in million euros.
“Below Threshold” includes annual Base Salary; VR at 0%; LTIP not vesting.
“Target” includes Base Salary, VR at target and LTIP grant face value in cash and in shares.
“Maximum” includes Base Salary; maximum VR value (200% of VR at target); maximum LTIP cash grant projected at vesting date (250% of grant value);
maximum performance applicable to the number of shares granted (150%). The share price development is unpredictable. The final value of performance
shares cannot be capped.

c) Base Salary
The Base Salary of the CEO is determined by the Board of Directors, taking into account the peer group analysis mentioned above.

d) Annual Variable Remuneration
The Variable Remuneration is a cash payment that is paid each year, depending on the achievement of specific and challenging
performance targets. The level of the Variable Remuneration for the CEO is targeted at 100% of the Base Salary; it is capped at a
maximum level of 200% of the Base Salary. The entire Variable Remuneration is at-risk, and therefore if performance targets are notachieved sufficiently, no Variable Remuneration is paid.
The performance measures that are considered when awarding the Variable Remuneration to the CEO are split equally between
Common Collective performance measures and Individual performance measures.

Common Collective Component
The Common Collective Component is based on EBIT (45%), Free Cash Flow (45%) and RoCE (10%) objectives. Each year, the Boardof Directors sets the goals for these key value drivers at Group and Division levels. The Common Collective financial targets relate
closely to internal planning and to guidance given to the capital markets (although there may be variations from these).
To calculate the Common Collective annual achievement levels, actual EBIT, Free Cash Flow and RoCE performance is comparedagainst the targets that were set for the year. This comparison forms the basis to computing achievement levels, noting that the actual
EBIT, Free Cash Flow and RoCE levels are occasionally adjusted for a limited number of factors which are outside management control(such as certain foreign exchange impacts or unplanned merger and acquisition activities). The RNGC’s intention is to ensure ambitious
financial targets and to incentivise the CEO’s commitment to meeting these targets.

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Individual
The Individual element focuses on Outcomes and Behaviour. Individual performance is assessed in these two important dimensions:•

Outcomes encompass various aspects of what the CEO can do to contribute to the success of the business: specific businessresults he helps achieve, projects he drives and processes he helps improve. The individual targets of the CEO are comprehensive
and shared with all employees via the Company Top Priorities;•

Behaviour refers to the way results have been achieved, which is also critical for long-term success: how the CEO and the Board of
Directors work as a team, how the CEO leads the Executive Committee, quality of communication, encouragement of innovation,etc. A specific part of the behaviour assessment relates to ethics, compliance and quality issues.

e) Long-Term Incentive Plan
There are two types of Long-Term Incentive Plans: until 2015, LTIP was made up of Performance Units only. Since 2016, following theapproval of amendments by shareholders at 2016 AGM, the LTIP has been composed of a mix of Performance Units and Performance
Shares.
The value of the CEO’s LTIP allocation is capped as a percentage of the Base Salary at the date of grant and subject to performance
conditions.
The performance conditions are assessed over a three-year period based on relevant financial criteria with stringent targets set, as
demonstrated by past Company practices.
Both Performance Units and Performance Shares that vest can vary between 0% and 150% of the Units and Shares granted, subject tocumulative performance over a three-year period. The level of vesting is subject to the following performance measures:•
0-50% of the allocation: In principle, this element of the Performance Unit/Share award will not vest if the Company reports negative
cumulated EBIT results. Nonetheless, in case the Company’s EBIT results are impacted by exceptional and unpredictable circumstances, theBoard of Directors, upon recommendation of the RNGC, may decide that a maximum portion of 50% of the allocation will vest;•
50-150% of the allocation: This element of the Performance Unit/Shares vests based on the two following performance criteria:
average Earnings Per Share (75%) and cumulative Free Cash Flow (25%). Before the 2013 plan, it used to vest according to one
performance criteria only: average Earnings Per Share.

For reasons of confidentiality, the precise targets set for the average EPS and cumulated Free Cash Flow, even though they have been
properly established in a precise manner, cannot be publicly disclosed as these objectives are in part linked to the Company’s strategy.

AIRBUS REGISTRATION DOCUMENT 2017 -131Nonetheless, for the sake of transparency and to ensure compliance with best market practices, retrospective information demonstrating thestringency of the targets set by the Board of Directors is provided for the previous long-term incentive plans.
The vesting of Performance Units and Shares is subject to the following maximum cap:•the maximum level of vesting is 150% of the number of Units/Shares granted.

The vesting of Performance Units is subject to the following maximum caps:•

the value that could result from share price increases is capped at 200% of the reference share price at the date of grant;•

the overall pay-out is capped at 250% of the value at the date of grant

Performance Units plan characteristics (until and including 2015 plan)
Performance Units are the long-term equity-related incentive awards that are currently granted to the CEO. LTIP awards are granted
each year. Each grant is subject to a three-year cumulative performance objective. At the end of the three-year period, the grant issubjected to a performance calculation to determine whether and to what extent it should vest. Depending on continued employment,
grants attributed until 2013 will vest in four tranches, the payment of which takes place approximately 6, 12, 18 and 24 months following
the end of the performance period. Depending on continuous employment, grants attributed from 2014 would vest in two tranches, thepayment of which would take place approximately 6 and 18 months following the end of the performance period.

AIRBUS REGISTRATION DOCUMENT 2017 -132

At the date of grant, the CEO must decide what portion of the allocation (subject to the performance calculation) would be released as
cash payments and what portion would be converted into shares. At least 25% (and up to 75%) of the award must be deferred intoshares, and would only be released on the last vesting date. For the conversion into shares, one Unit corresponds to one Airbus share.
For each payment in cash, one Unit is equal to the value of one Airbus share at the time of vesting. The Airbus share value is theaverage of the opening share price, on the Paris Stock Exchange, during the 20 trading days preceding and including the respective
vesting dates.

LTIP-SCHEME FROM 2014 TO 2015

Performance Units & Performance Shares characteristics (since 2016)
Since the 2016 plan, the CEO’s LTIP is comprised of a mix of Performance Units and Performance Shares in order to increase thealignment with shareholders’ interests.For each payment in cash, one Unit is equal to the value of one Airbus share at the time ofvesting. The Airbus share value is the average of the opening share price, on the Paris Stock Exchange, during the 20 trading days
preceding and including the respective vesting dates.
For the CEO, the value of the Performance Unit and Share allocation is capped, at the time of grant, at 100% of the Base Salary. At theend of the three-year period, the grant is subject to a performance calculation to determine whether and to what extent it should vest.
Depending on continued employment, Performance Units attributed since 2016 will vest in two tranches, the payment of which takes
place approximately 6 and 18 months following the end of the performance period. Performance Shares would vest in one tranche,
approximately 6 months following the end of the performance period. LTIP-SCHEME SINCE 2016f) Share Ownership Guideline
The Board of Directors has established a share ownership guideline pursuant to which the CEO is expected to acquire Airbus shareswith a value equal to 200% of the Base Salary and to hold them throughout his tenure.

g) Benefits
The benefits offered to the CEO comprise a company car and accident insurance. Travel cost reimbursements are based on the
Company travel policy as applicable to all employees.

h) Retirement
The CEO is entitled to a retirement benefit. The Company’s policy is to provide a pension at retirement age that equals 50% of the Base
Salary, once the CEO has served on the Executive Committee for five years. This pension can increase gradually to 60% of the Base
Salary, for Executives who have served on the Executive Committee for over ten years, and have been employed for at least 12 years.

i) Contracts and Severance
In the case of contract termination, the CEO is entitled to an indemnity equal to 1.5 times the Total Target Remuneration (defined as
Base Salary and target Annual Variable Remuneration) with respect to applicable local legal requirements if any. This will not apply if
the CEO mandate is terminated for cause, in case of dismissal, if he resigns or if the CEO has reached retirement age.

AIRBUS REGISTRATION DOCUMENT 2017 -133

The CEO’s contract includes a non-compete clause which applies for a minimum of one year and can be extended at the Company’s
initiative for a further year. The Board of Directors has the discretion to invoke the extension of the non-compete clause. The
compensation for each year that the non-compete clause applies is equal to 50% of the last Total Annual Remuneration (defined as
Base Salary and VR most recently paid) with respect to applicable local legal requirements if any.
Past LTIP awards may be maintained, in such cases as in the case of retirement or if a mandate is not renewed by the Company
without cause. The vesting of past LTIP awards follows the plans’ rules and regulations and is not accelerated in any case. LTIP awards
are forfeited for Executives who leave the Company on their own initiative, but this is subject to review by the Board of Directors.

j) Clawback
Recent changes to Dutch law introduced the possibility for the Company to deduct or claw back part of the CEO’s variable cash
remuneration (i.e. VR) or equity-related remuneration (excluding the LTIP element settled in cash) served by the Company if certain
circumstances arise.
Any revision, claw back, or amounts deducted from the CEO’s remuneration will be reported in the notes of the relevant financial
statements.

k) Loans
The Company does not provide loans or advances to the CEO.

4.2.1.2

Non-Executive Remuneration – Applicable to Non-Executive Membersof the Board of Directors

The Company’s Remuneration Policy with regard to non-Executive Members of the Board of Directors is aimed at ensuring faircompensation and protecting the independence of the Board’s Members.

Fees and Entitlements
Non-Executive Members of the Board are currently entitled to the following:•a base fee for membership or chair of the Board;•a Committee fee for membership or chair on each of the Board’s Committees;•an attendance fee for the attendance to Board meetings.

Each of these fees is a fixed amount. Non-Executive Members of the Board do not receive any performance or equity-relatedcompensation, and do not accrue pension rights with the Company in the frame of their mandate, except what they would receive in theframe of a current or past Executive mandate. These measures are designed to ensure the independence of Board Members andstrengthen the overall effectiveness of the Company’s corporate governance.
The Company does not encourage Non-Executive Directors to purchase Company shares.
Under the current policy, and since 2016, the fees were reviewed to recognise the increase in Board Members’ responsibilities, theirgreater time commitment and Airbus’ continuous need to attract and retain highly competent Members. To incentivise Board
attendance, the attendance fees have doubled. Membersof the Board are entitled to the following fees:
Fixed fee for membership of the Board (EUR / year):•

Chairman of the Board: € 210,000•

Member of the Board: € 80,000

Fixed fee for membership of a Committee (EUR / year):•

Chairman of a Committee: € 30,000•

Member of a Committee: € 20,000

Attendance fees (EUR / Board meeting):•

Chairman: € 15,000•

Member: € 10,000

Attendance fees shall decrease by 50% in case of an attendance by phone.
Committee chairmanship and Committee membership fees are cumulative if the concerned Non-Executive Director belongs to two
different Committees. Fees are paid twice a year at the end of each semester (as close as possible to the Board meeting dates).

4.2.1.4

Implementation of the Remuneration Policy in 2017: CEOa) Benchmarking

AIRBUS REGISTRATION DOCUMENT 2017 -134Based on a review the RNGC performed in 2014 with the assistance of an independent consultant, Willis Towers Watson, it was
concluded that the CEO’s Total Direct Compensation was slightly below the median level of the peer group. In 2017, there was noincrease of the CEO remuneration.

b) Base Salary
For 2017, the Base Salary remains at € 1,500,000. The CEO’s Base Salary level was reviewed in 2015 and approved by shareholders
at 2016 AGM. Any future review of the CEO’s Base Salary will also take into consideration salary increases of employees across theCompany.

c) Annual Variable Remuneration
As stipulated in the Company’s Remuneration Policy, the CEO’s VR is targeted at 100% of the Base Salary and capped at 200% of theBase Salary. It is subject to the fulfilment of Collective and Individual performance targets.
For 2016, the VR amounted to an aggregate € 2,167,500 composed of € 1,192,500 for the Common Collective Component (159%), and€ 975,000 for the Individual part (130%).
The Common Collective Component results from a composite 159% achievement of EBIT, Free Cash Flow and RoCE objectives.
This achievement mainly reflects a solid EBIT and Free Cash Flow generation against the budgeted targets. The main drivers of thatsuccess were the strong underlying business performance, healthy pre-delivery payments inflows, on-going efforts to control working
capital including payment terms to suppliers and lower R&D spending. Finally, RoCE was slightly below the target.
Normalisation adjustments were made to exclude exceptional events such as currency exchange differences or those arising fromphasing mismatches.
The Individual part results from a good achievement level of 130% out of 200%, assessed by the RNGC and approved by the Boardon the basis of the CEO’s performance and behaviour, mostly with respect to the four Airbus priorities agreed at the start of the year.
For each of these outcomes, leadership, personal performance and contributions were examined.
The factors determining the good assessment were among other achievements:•

Solid financial figures achieving the envisaged targets to a large extent despite set-backs on the A400M programme.

•

Very good operational performance with a new record number of aircraft deliveries mastering a solid ramp-up of the A350
programme and the transition from the ceo to the new neo version of the A320 programme despite technical issues with both newengine types.

•

Excellent strategic move in acquiring the Bombardier C Series programme to complement the Airbus product portfolio and to set
the pace for the competition.

•

Confirmed lead on the civil and parapublic helicopter market against a challenging market backdrop while slightly improving theposition on the military market.

•

Good progress in key development programmes Airbus A350-1000, Airbus Helicopters H160 and Ariane 6.

•

Rapid implementation of the digital roadmap including digitalization of the development and production processes.

•“Go live” for the Company’s further integration through the “Gemini” project by merging Airbus and Airbus Group for a leaner andmore efficient management.

•

Strong focus on Company-wide benchmark Compliance standards and processes as well as coordinated Corporate Social
Responsibility activities.

•

Reinforced efforts on gender and international diversity as well as implementation of new HR transformation and management
development programmes.

AIRBUS REGISTRATION DOCUMENT 2017 -135

PERFORMANCE AGAINST TARGETd) Long-Term Incentive Plan
Granting 2017
As stipulated in the Company’s Remuneration Policy the CEO is eligible for a Performance Units and Performance Shares award under
the Company’s LTIP 2017. The value of the Performance Unit and Share award is capped at 100% of the Base Salary at the date of
grant. During 2017, the CEO was granted in total of both 20,324 Performance Units and Performance Shares.
The table below gives an overview of the Performance Units and Performance Shares granted to the CEO in 2017 pursuant to
the LTIP*:

Unit plan: number of Performance Units
Granted in 2017

Vesting dates

10,162

Vesting schedule is made up of 2 tranches over 2 years:(i) 50% expected in May 2021;(ii) 50% expected in May 2022.

Thomas Enders*

There is no obligation under the Dutch Financial Supervision Act to notify the cash units under the LTIP to the AFM. The CEO’s cash units are
therefore no longer reflected in the AFM register.

Share plan: number of Performance Shares
Granted in 2017

Vesting dates
Vesting schedule is made up of 1 tranche:Thomas Enders

10,162(i) 100% expected in May 2021

Vesting values in 2017
In 2017, the CEO received both cash payments and vested shares in connection with the vesting of 2012 and 2013 LTIP awards:•

Cash: the total cash payment to the CEO amounted to € 1,372,048 in 2017 versus € 2,279,709 in 2016.

•

Shares: In connection with the 2012 LTIP award, the CEO had elected that 25% of his grant should be deferred intoshares. Therefore, the CEO received 11,192 vested shares (16,448 vested shares in 2016) on the fourth vesting date forthe 2012 LTIP (31 November 2017). In connection with the 2013 LTIP award, the CEO had elected that 50% of his grantshould be deferred into shares. Therefore, the vesting of 5,682 Performance Units for the LTIP 2013 will be released in
the form of shares on the fourth vesting date for the 2013 LTIP (which will take place in 2018).

LTIP overview: granting and vesting
Date ofgrants

Grant
Type

Share priceat grant
date
NumberValue atgrant date (Un)conditional

Units withperformanceachievement

Performanceachievement

Dates ofvesting

Share value atvesting dates
1st vesting – 3 May
2016:€ 55.66*Units

2nd vesting –31 October 2016: €
53.77

2012

50,300€ 27.83€ 1,399,849

Conditional

89%

AIRBUS REGISTRATION DOCUMENT 2017 -

44,768136

4 vestings in2016 - 2017

3rd vesting –3 May 2017:€ 55.66*

Units

4th vesting –3 November 2017:€ 55.66*
1st vesting – 3 May
2017:€ 72.12

2013

Units

30,300€ 46.17€ 1,398,951

Conditional

75%

2014

Units

29,500€ 47.45€1,399,775

Conditional

80%

2015

Units

24,862€ 56.31€1,399,979

Conditional Not yet known

2016

Units

14,240€ 52.67€ 750,021

2016

Shares

14,240€ 52.67

2017

Units

10,162€ 73.81

22,7242nd vesting –4 vestings in 3 November 2017:2017 - 2018
€ 81.92
2 vestings in2018 - 2019

Not yet known

Not yet known

2 vestings in2019 - 2020

Not yet known

Conditional Not yet known

Not yet known

2 vestings in2020 - 2021

Not yet known€ 750,021

Conditional Not yet known

Not yet known

1 vesting in
2020

Not yet known€ 750,057

Conditional Not yet known

Not yet known

2 vestings in
2021 - 2022

Not yet known

23,600Calculations may involve rounding to the nearest unit.
* For vesting 2012 the cap applicable to the share price was applied

Performance Conditions of LTIP 2013 and 2014
The performance conditions for LTIP 2013 were determined as follows:•

if Airbus reports negative cumulated EBIT results, the Board of Directors can decide in its sole discretion to review the vestingof the Performance Units, including the 50% portion which is not subject to performance conditions.

•

50% to 150% of the allocation would be granted depending on the compounded achievement of the two following
performance criteria:- 75% of average Earnings Per Share (“Ave EPS”): determined on a linear basis depending on three-year Ave EPS
for the 2014, 2015 and 2016 fiscal years, with the three-year Ave EPS target for an allocation of 100% equal to € 3.64,

and 25% of cumulative Free Cash Flow (“Cum FCF”): determined on a linear basis depending on three-year Cum FCF for the
2014, 2015 and 2016 fiscal years, with the three year Cum FCF target for an allocation of 100% equal to € 2,650m.
The performance conditions for LTIP 2014 were determined as follows:•

if Airbus reports negative cumulated EBIT results, the Board of Directors can decide at its sole discretion to review the vesting of the
Performance Units, including the 50% portion which is not subject to performance conditions.

•

50% to 150% of the allocation would be granted depending on the compounded achievement of the two following performance
criteria:-

75% of Ave EPS: determined on a linear basis depending on three-year Ave EPS for the 2015, 2016 and 2017 fiscal
years, with the three-year Ave EPS target for an allocation of 100% equal to € 3.31,-

and 25% of Cum FCF: determined on a linear basis depending on three-year Cum FCF for the 2015, 2016 and 2017
fiscal years, with the three-year Cum FCF target for an allocation of 100% equal to € 4,298m.

Review of Achievement of Performance Conditions
The Board of Directors on 21 February 2017 noted the achievement of the performance conditions of the 2013 plan, i.e. for the 2014,2015 and 2016 fiscal years. The three year average EPS was € 2.28, after normalisation to align it with policies in force when setting thetarget (notably IAS11). The three-year Cum FCF before M&A was € 3,440m.
Furthermore the Board of Directors on 14 February 2018 noted the achievement of the performance conditions of the 2014 plan, i.e. forthe 2015, 2016 and 2017 fiscal years. The three year average EPS (“Ave EPS”) was € 2.81 after normalisation to align it with policies inforce when setting the target (notably IAS11). The three year cumulative FCF (“Cum FCF”) before M&A was € 9,741m.

AIRBUS REGISTRATION DOCUMENT 2017 -137

Date ofgrants2012

KPI

Numberof units

Ave EPS

50,300Ave EPS2013

2014

Cum FCF
before M&A
Ave EPS
Cum FCF30,30029,500Target for
a 100%
allocation

Achieved

Performanceachievementin percentage

Compounded
performanceachievementin percentage

Resultingvesting in
number

N/A

44,768€ 2.75€ 2.6389%€ 3.64€ 2.2850%€ 2,650m€ 3,440m

150%€ 3.31€ 2.8156%€ 4,298m€ 9,741m

150%

For comparison,
average EPS for thelast 3 reported years
at the date of grant€ 0.34*€ 1.15**75%

22,72480%

23,600€ 1.51****
Average EPS of 2011, 2010 and 2009** Average EPS of 2012, 2011 and 2010*** Average EPS of 2013, 2012 and 2011e) Share Ownership
The CEO owned 92,161 Company shares on 31 December 2017, which represents more than 200% of the base salary. He herewith
respects Airbus’ share ownership policy.

f) Employee Share Ownership Plan (ESOP)In March 2017, the Company offered all eligible employees the opportunity to subscribe to a share matching plan, through which theCompany matches a certain number of directly acquired shares with a grant of matching shares. This ratio varied depending on thenumber of shares acquired at fair market value by the employees, with a maximum discount of 44%. The total offering was up to
2.2 million shares of the Company, open to all qualifying employees. Information about the plan can be found on the Company’s
website.
Under the umbrella of the ESOP 2017, a dedicated UK tax advantageous Share Incentive Plan (“SIP”), was also deployed in
March 2017.
Although the CEO was eligible for the plan, he did not participate to the ESOP 2017 plan favouring the development of a shareholding
among other employees of the Company.

g) Benefits
As stipulated in the Company’s Remuneration Policy the CEO’s benefits comprise a company car and accident insurance. The
monetary value of these benefits for 2017 amounted to € 63,250.

h) Retirement
As of 31 December 2017, the present value of the CEO’s pension defined benefit obligation, including deferred compensation amounted
to € 21,176,042 versus € 21,251,788 a year ago. While the plan benefits remain identical, the present value of the pension obligation
was calculated applying a 1.5% discount rate in 2017 compared to a 1.7% discount rate in 2016, which mainly explains the change invalue. For the fiscal year 2017, the current service and interest costs related to the CEO’s pension promise represented an expense of€ 1,175,057. This obligation has been accrued in the Consolidated Financial Statements.
The defined benefit obligation for the CEO’s Company pension results from the Company’s pension policy as described above andtakes into account (1) the seniority of the CEO in the Company and on its Executive Committee and (2) the significantly lower public
pension promise deriving from the German social security pension system, compared to a pension resulting from membership in the
French pension system.

i) Clawback
The Board has not applied any clawback in 2017.

AIRBUS REGISTRATION DOCUMENT 2017 -138

4.2.1.5

Implementation of the Remuneration Policy in 2017: Non-Executive Directors

The last review of the Board remuneration was undertaken in 2015 and is in line with market practice, incentivise attendance andrecognise the strategic role played by the Board of Directors in Airbus’ developments. The CEO is the only Member of the Board of
Directors who is not entitled to any Board membership fee.
For personal reasons, and with regards to the implementation of remuneration policy approved at AGM 2016, Denis Ranque decided in2016 and onwards to waive the portion of his remuneration as Chairman of the Board of Directors which exceeds € 240,000 (his total
target remuneration for 2015, based on 6 meetings per year and including chairmanship Board fixum and attendance fees) until further
notice.
Taking into account D. Ranque’s wishes to waive the supplement linked to this remuneration policy, but also to the increase of numberof Board meetings in 2017, the remuneration of Denis Ranque related to 2017 as Chairman of the Board of Director (chairmanship
Board Fixum and Attendance fees) is € 260,000.
Therefore, the Board recommended that the remuneration exceeding €260,000 would be converted into an annual contribution to the
Airbus Foundation as long as Denis Ranque waived this part of his remuneration which corresponds to € 70,000 based on the numberof Board meetings in 2017.
Summary table of the 2017 and 2016 fees of all non-Executive Members of the Board (current and former):

2016

2017
Fixum*

Attendancefees**

Total

Fixum*

Attendancefees**

Total

Denis Ranque***

204,293

80,000284,293

180,000

60,000240,000

Ralph D. Crosby Jr.

94,42080,000174,42080,00050,000130,000

Lord Drayson****72,10060,000132,100000Catherine
Guillouard***120,000

70,000190,000

67,58240,000107,582

Hans-Peter Keitel

100,000

60,000160,000

100,000

60,000160,000

135,707

70,000205,707110,000

55,000165,000

28,176

10,00038,176

100,000

50,000150,000

120,000

80,000200,000

100,000

55,000155,000

Claudia Nemat

100,000

70,000170,000

67,58230,00097,582Sir John Parker***

135,707

65,000200,707110,000

60,000170,000

Carlos Tavares

80,00065,000145,000

54,06620,00074,066

Jean-Claude Trichet

100,000

80,000180,000

100,000

60,000160,000

FormerNonExecutive
Board
Members
Manfred Bischoff

0

0

0

26,15420,00046,154

Anne Lauvergeon

0

0

0

32,692

10,00042,692Michel Pébereau

0

0

0

32,69220,00052,692

1,290,403

790,000

2,080,403

1,160,768

590,000

1,750,768(in €)

Non-Executive
Board Members

Hermann-Josef
Lamberti***
Lakshmi N. Mittal^
María Amparo
Moraleda Martínez***

TOTAL* The fixum includes a base fee for a Board membership and a Committee fee membership within the Audit Committee, the RNGC and/or the E&C
Committee. The fixum for the year 2017 was paid 50% in January 2017 and 50% in July 2017. The fixum for the year 2016 was paid 50% in
December 2015 and 50% in July 2016.
** The attendance fees related to the first semester 2017 were paid in July 2017, those related to the second semester 2017 are paid in January
2018. The attendance fees related to the first semester 2016 were paid in July 2016; those related to the second semester 2016 were paid in
January 2017.
*** Member of the E&C Committee and its predecessor, the temporary Ad-Hoc Committee.
****Member of the Company Board of Directors and the RNGC as of 12 April 2017.
^Not a Member of the Company Board of Directors as of 12 April 2017.

4.2.2

Long-Term Incentives Granted to the Chief Executive Officer

See “— 4.3.3 Long-Term Incentive Plans”.
AIRBUS REGISTRATION DOCUMENT 2017 -139

4.2.3

Related Party Transactions

Reflecting Article 2:129(6) of the Dutch Civil Code, Article 18.5 of the Articles of Association provides that “a Director shall not take partin the deliberations or decision-making if he has a direct or indirect personal interest which conflicts with the interests of the Company
and of the enterprise connected with it. If as a result thereof no resolution of the Board of Directors can be adopted, the resolution isadopted by the General Meeting”.
During the years 2015, 2016 and 2017, no agreement was entered into by the Company with one of its Directors or principal officers ora shareholder holding more than 5% of the voting rights of the Company outside the ordinary course of business and in conditions otherthan arm’s length conditions. For more information, please refer to the “— Notes to the IFRS Consolidated Financial Statements —Note 8: Related party transactions” for the year ended 31 December 2017 and “— Notes to the IFRS Consolidated Financial Statements— Note 8: Related party transactions” for the year ended 31 December 2016, as incorporated by reference herein.
For a description of the relationships between the Company and its principal shareholders, see “— General Description of the Company
and its Shareholders — 3.3.2 Relationships with Principal Shareholders”. Other than the relationships between the Company and its
principal shareholders described therein, there are no potential conflicts of interest between the duties to the Company of the Directors
and their respective private interests or other duties.

4.3 Employee Profit Sharing and Incentive Plans
4.3.1

Employee Profit Sharing and Incentive Agreements

The Company’s remuneration policy is strongly linked to the achievement of individual and Company objectives, both for each Divisionand for the overall Company. In 2012, a Performance and Restricted Unit plan was established for the senior management of Airbus(see “— 4.3.3 Long-Term Incentive Plans”), and employees were offered shares at favourable conditions within the context of a new
employee share ownership plan (see “— 4.3.2 Employee Share Ownership Plans”).
The success sharing schemes which are implemented at the Company in France, Germany, Spain and the UK follow one set ofcommon rules of the group, ensuring a consistent application in these four countries.

4.3.2

Employee Share Ownership Plans

Enabling employees to participate in the results of the Company is a key element in the Airbus benefits policy. Since its creation, theCompany has developed a philosophy based on sharing the added value created by the Company with all employees (including theCEO). Therefore, the Company has regularly offered qualifying employees the opportunity to purchase shares on favourable terms
through the ESOP.
According to shareholders’ resolutions adopted at the AGM, the powers to issue shares and to set aside preferential subscription rights
of existing shareholders have been granted to the Board of Directors at the 2017 AGM. Such powers include the approval of ESOP.
The following table summarises the main terms of the ESOPs conducted over the last three years:

Year

Nominal value per share

Number of shares issued

Date of issuance€12,113,245

29 July 20132015

€ 49.70(1) /€ 51.63(2) /€ 65.59(4)€1€11,436,901
102,11321 April 2015
November 20152016

€ 54.31(1) / € 55.41(2) € /55.53(5)€1

1,366,893
107,823

14 April 201618 November 20162017

€ 64.44(1) / € 67.24(2) /€ 85.20(6)€1€11,554,611
88,582

3 May 201721 November 2017

2013
2014

(1)
(2)
(3)
(4)

Price per share(1)€ 42.02(2)/ € 44.20(3)

Shares purchased within context of group employee savings plan.
Shares purchased directly.
July 2014 the Board of Directors decided to cancel the ESOP scheme for 2014 due to volatility of the share price and the financial situation.
Under the umbrella of the ESOP 2015, a dedicated UK tax advantageous Share Incentive Plan, SIP, was also deployed.

(5) Under the umbrella of the ESOP 2016, a dedicated UK tax advantageous Share Incentive Plan, SIP, was also deployed.
(6) Under the umbrella of the ESOP 2017, a dedicated UK tax advantageous Share Incentive Plan, SIP, was also deployed.

In 2017 and 2016, the Board of Directors approved a new ESOP scheme. Eligible employees were able to purchase a fixed number ofpreviously unissued shares at fair market value (2017: 5, 20, 30, 50 or 100 shares; 2016: 4, 6, 10, 19, 38 or 76 shares). Airbus matchedeach fixed number of shares with a number of the Company free shares based on a determined ratio (2017: 4, 8, 10, 13 and 25 freeshares, respectively; 2016: 4, 5, 7, 11, 16 and 25 free shares, respectively). During a custody period of at least one year or, provided thepurchase took place in the context of a mutual fund (regular savings plan), of five years, employees are restricted from selling the

AIRBUS REGISTRATION DOCUMENT 2017 -140

shares, but have the right to receive all dividends paid. Employees who directly purchased the Company shares have, in addition, theability to vote at the annual shareholder meetings. The subscription price was equal to the closing price at the Paris stock exchange on
21 February 2017 (2016: 23 February 2016) and amounted to € 67.24 (2016: € 55.41). Investing through the mutual fund led to a pricewhich corresponds to the average price at the Paris stock exchange during the 20 trading days immediately preceding 21 February
2017 (2016: 23 February 2016), resulting in a price of € 64.44 (2016: € 54.31). The Company issued and sold 411,710 ordinary shares(2016: 485,048) with a nominal value of € 1.00 each. Compensation expense (excluding social security contributions) of € 28 million(2016: € 27 million) was recognised in connection with ESOP.The Company intends to implement an ESOP in 2019, subject to approvalby the Board of Directors, open to all qualifying employees (including the CEO). With future ESOP, the Company intends to offer sharesto eligilble employees through the issuance of shares or free distribution of shares or other existing or new securities giving access tothe capital as a matching contribution. This plan would aim at favouring the development of employee shareholding.

AIRBUS REGISTRATION DOCUMENT 2017 -141

4.3.3Long-Term Incentive Plans

In 2012, 2013, 2014, 2015 and 2016, based on the authorisation granted to it by the shareholders’ meetings (see dates below), theBoard of Directors approved the granting of LTIP Performance Units and Restricted Units in the Company. The grant of so-called “units”
will not physically be settled in shares but represents a cash settled plan in accordance with IFRS 2. In 2017, the Board of Directors
approved an LTIP Performance Units and Performance Share Plan.
The principal characteristics of these options as well as Performance and Restricted Units as of 31 December 2017 are set out in the“Notes to the IFRS Consolidated Financial Statements — Note 30: Share-based payment”. They are also summarised in the tables
below:AIRBUS REGISTRATION DOCUMENT 2017 -142

AIRBUS REGISTRATION DOCUMENT 2017 -143

Fourteenth tranche
Date of Board of Directors
meeting (grant date)

13 December 2012
Performance and Restricted Unit plan

Number of units granted(1)Number of units outstanding

Performance Units

Restricted Units

2,123,892

621,98000Units granted to:•

Mr. Thomas Enders*

50,300-•the 10 employees having
being granted the highest
number of units during
the year 2012 (fourteenth
tranche)251,800-

Total number of eligible
beneficiaries

1,797
The Performance and Restricted Units will vest if the participant is still employedby an Airbus company at the respective vesting dates and, in the caseof Performance Units, upon achievement of mid-term business performance.
Vesting schedule is made up of 4 payments over 2 years:• 25% expected in May 2016;• 25% expected in November 2016;• 25% expected in May 2017;• 25% expected in November 2017.

Vesting dates
Number of vested units

1,744,570

568,495(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performanceachievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of
Airbus) 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).
*
For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements —Note 31: Remuneration”.

Fifteenth tranche
Date of Board of Directors
meeting (grant date)

13 November 2013
Performance and Restricted Unit plan(1)

Number of units granted

Number of units outstanding

Performance Units

Restricted Units

1,245,052

359,060

440,591

167,386

Units granted to:•

Mr. Thomas Enders*

30,300-•the 10 employees having
being granted the highest
number of units during
the year 2013 (fifteenth
tranche)173,100-

Total number of eligible
beneficiaries

Vesting dates
Number of vested units

1,709
The Performance and Restricted Units will vest if the participant is still employedby an Airbus company at the respective vesting dates and, in the caseof Performance Units, upon achievement of mid-term business performance.
Vesting schedule is made up of 4 payments over 2 years:• 25% expected in May 2017;• 25% expected in November 2017;• 25% expected in May 2018;• 25% expected in November 2018.
424,425

169,254(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performanceachievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of
Airbus) 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).

AIRBUS REGISTRATION DOCUMENT 2017 -

144

*

For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements —Note 31: Remuneration”.

AIRBUS REGISTRATION DOCUMENT 2017 -145

Sixteenth tranche
Date of Board of
Directors meeting(grant date)

13 November 2014
Performance and Restricted Unit plan
Performance Units

Restricted Units

Number of units
granted(1)1,114,962

291,420

Number of units
outstanding

834,572

275,070

Units granted to:•

Mr. ThomasEnders*29,500-•the
10 employees
having being
granted thehighest numberof units during
the year 2014
(sixteenth
tranche)176,460-

Total number of
eligiblebeneficiaries

Vesting dates
Number of vested
units

1,621
The Performance and Restricted Units will vest if the participant is still employedby an Airbus company at the respective vesting dates and, in the caseof Performance Units, upon achievement of mid-term business performance.
Vesting schedule is made up of 2 payments over 2 years:• 50% expected in June 2018;• 50% expected in June 2019.
5,580

2,060

(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performanceachievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of
Airbus) 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).
*
For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements —Note 31: Remuneration”.

Seventeenth tranche
Date of Board of
Directors meeting(grant date)

29 October 2015
Performance and Restricted Unit plan
Performance Units

Restricted Units

Number of units
granted(1)926,398

240,972

Number of units
outstanding

890,248

238,386

Units granted to:•

Mr. ThomasEnders*

24,862-•the
10 employees
having being
granted thehighest numberof units during
the year 2015
(seventeenth

156,446-

AIRBUS REGISTRATION DOCUMENT 2017 -146

tranche)
Total number of
eligiblebeneficiaries

Vesting dates
Number of vested
units

1,564
The Performance and Restricted Units will vest if the participant is still employedby an Airbus company at the respective vesting dates and, in the caseof Performance Units, upon achievement of mid-term business performance.
Vesting schedule is made up of 2 payments over 2 years:• 50% expected in June 2019;• 50% expected in June 2020.
2,606

-

(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performanceachievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of
Airbus) 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).
*
For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements —Note 31: Remuneration”.

Eighteenth tranche
Date of Boardof Directors
meeting (grantdate)

25 October 2016
Performance units and performance shares plan
Performance Units

Performance Shares

Number ofunits/shares
granted(1)615,792

621,198

Number ofunits/shares
outstanding

605,789

611,225

Mr.
ThomasEnders*

14,24014,240the
10 employeeshavingbeing
grantedthehighestnumber ofunits/shares duringtheyear 2016(eighteenth tranche)

79,50485,200

Units/shares
granted to:••

Total numberof eligible
beneficiaries

1,671

Vesting dates

The Performance Units and Shares will vest if the participant is still employedby an Airbus company at the respective vesting dates and, in the caseof Performance Units and Shares, upon achievement of mid-term business performance.
Vesting schedule is made up of 2 payments over 2 years:• Performance Units :• 50% expected in May 2020;• 50% expected in May 2021.
• Performance Shares: 100% expected in May 2020

AIRBUS REGISTRATION DOCUMENT 2017 -147

Number ofvested units--(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performanceachievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of
Airbus) 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).
*
For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements —Note 31: Remuneration”.

Nineteenth tranche
Date of Boardof Directors
meeting (grantdate)

30 October 2017
Performance units and performance shares plan
Performance Units

Performance Shares

Number ofunits/shares
granted(1)421,638

425,702

Number ofunits/shares
outstanding

421,638

425,702

Mr.
ThomasEnders*

10,162

10,162the
10 employeeshavingbeing
grantedthehighestnumber ofunits/shares duringtheyear 2017(eighteenth tranche)

53,80857,872

Units/shares
granted to:••

Total numberof eligible
beneficiaries

1,601

Vesting dates

The Performance Units and Shares will vest if the participant is still employedby an Airbus company at the respective vesting dates and, in the caseof Performance Units and Shares, upon achievement of mid-term business performance.
Vesting schedule is made up of 2 payments over 2 years:• Performance Units :• 50% expected in May 2021;• 50% expected in May 2022.
• Performance Shares: 100% expected in May 2021

Number ofvested units--(1) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performanceachievement; up to a maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT* of
Airbus) 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).
*
For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements —Note 31: Remuneration”.

The information in respect of stock options and performance and restricted shares cancelled and exercised during the year are set out
in “Notes to the IFRS Consolidated Financial Statements — Note 30: Share-based payment”.

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SHAREHOLDING IN THE COMPANY OF THE MEMBERS OF THE BOARD OF DIRECTORSMember of the Board of Directors

Shareholding•

Mr. Thomas Enders

65,161 ordinary shares•

Mr. Denis Ranque

2,000 ordinary shares•

Ms. Catherine Guillouard

125 ordinary sharesNo other Member of the Board of Directors holds shares or other securities in the Company.

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149

5.
Entity Responsible
for the Registration Document
5.1 Entity Responsible for the Registration
Document
Airbus SE

5.2 Statement of the Entity Responsible
for the Registration Document
The Company declares that, having taken all reasonable care to ensure that such is the case, the information contained in
the Registration Document is, to the best of the Company’s knowledge, in accordance with the facts and contains no omission likely toaffect its import.
Airbus SE represented by:Thomas Enders
Chief Executive Officer

5.3 Information Policy•

Contact details for information:
Ms Julie Kitcher
Head of Investor Relations and Financial Communication, Airbus SE
2 rond point Emilie Dewoitine
BP 9011231703 Blagnac France
Telephone: +33 5 82 05 53 01
E-mail: ir@airbus.com•

Special toll-free hotlines are available to shareholders in France (0 800 01 2001), Germany (00 800 00 02 2002) and Spain (00800 00 02 2002). An international number is also available for the rest of the world (+33 800 01 2001)•

An e-mail box is dedicated to shareholders’ messages: ir@airbus.com

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A website, www.airbus.com, provides a wide range of information on the Company, including the Board of Directors’ report.
Additionally, for the life of this Registration Document, copies of:•

the Company’s Articles of Association;•

the Registration Document filed in English with, and approved by, the AFM on 5 April 2016;•

the Registration Document filed in English with, and approved by, the AFM on 4 April 2017; and•the Consolidated Financial Statements (IFRS) and the Company Financial Statements of Airbus SE for the years ended
31 December 2016 and 2017, together with the related Auditors’ reports, may be inspected at the Company’s registered office at:Airbus SE, Mendelweg 30, 2333 CS Leiden, the Netherlands, Seat (statutaire zetel) Amsterdam, Tel.: +31 (0)71 5245 600.

5.4 Undertakings of the Company regarding
Information
Given the fact that the shares of the Company are listed on Euronext Paris, on the regulierter Markt (in the sub-segment Prime
Standard) of the Frankfurt Stock Exchange and on the Madrid, Bilbao, Barcelona and Valencia Stock Exchanges, the Company issubject to certain laws and regulations applicable in France, Germany and Spain in relation to information, the main ones of which aresummarised in “General Description of the Company and its Share Capital — 3.1.3 Governing Laws and Disclosures”.

5.5 Significant Changes
As of the date of this Registration Document, there has been no significant change in the Company’s financial or trading position since
31 December 2017.

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152