Unaudited Condensed Interim IFRS Consolidated
Financial Information of Airbus Group SE
for the nine-month period ended 30 September 2016
Unaudited Condensed Interim IFRS Consolidated Income Statements .................................................................. 2
Unaudited Condensed Interim IFRS Consolidated Income Statements for the third quarter of 2016 and 2015 ...... 3
Unaudited Condensed Interim IFRS Consolidated Statements of Comprehensive Income .................................... 4
Unaudited Condensed Interim IFRS Consolidated Statements of Comprehensive Income for the third quarter of2016 and 2015......................................................................................................................................................... 5
Unaudited Condensed Interim IFRS Consolidated Statements of Financial Position .............................................. 6
Unaudited Condensed Interim IFRS Consolidated Statements of Cash Flows ....................................................... 7
Unaudited Condensed Interim IFRS Consolidated Statements of Changes in Equity ............................................. 8
Notes to the Unaudited Condensed Interim IFRS Consolidated Financial Statements as at 30 September 2016 .. 91.

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

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

Acquisitions and disposals ...................................................................................................................... 10

4.

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

5.

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

6.

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

7.

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

8.

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

9.

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

10.

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

11.

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

12.

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

13.

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

14.

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

15.

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

16.

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

17.

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

18.

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

19.

Financial instruments............................................................................................................................... 21

20.

Litigation and claims ................................................................................................................................ 23

21.

Number of employees ............................................................................................................................. 26

22.

Subsequent events .................................................................................................................................. 26

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

Unaudited Condensed Interim IFRS Consolidated Income Statements

Note

1 January 30 September 2016
In € million
In %1 January 30 September 2015
In € million
In %642,705100

42,965100-260-38,939-91-36,942-86-1,997

3,766

9

6,023

14

-2,257

Selling, administrative and other expenses-1,895-5-2,019-5124

Research and development
expenses-2,015-5-2,287-5

272

Other income

2,422

6

296

1

2,126

78

0

909

2

-831

2,356

5

2,922

7

-566

Interest income

186

0

131

0

55

Interest expense

-389

-1

-429

-1

40

Revenues
Cost of sales
Gross margin

6

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

6

Other financial result

Deviation
In € million

-139

0

-238

-1

99

Finance result

7

-342

-1

-536

-2

194

Income taxes

8

-204

0

-484

-1

280

1,810

4

1,902

4

-92

1,811

4

1,900

4

-89

-1

0

2

0

-3

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

€

€

€

Basic

2.34

2.42

-0.08

Diluted

2.33

2.41

-0.08

Earnings per share

9

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

2

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

Unaudited Condensed Interim IFRS Consolidated Income Statements
for the third quarter of 2016 and 2015
1 July 30 September 2016
In € million
In %1 July 30 September 2015
In € million
In %Deviation
In € million

Revenues

13,950100

14,072

100-122

Cost of sales-12,296-88-12,083-86-213

Gross margin

1,654

12

1,989

14

-335

Selling, administrative and other expenses

-603

-4

-627

-4

24

Research and development
expenses

-706

-5

-781

-6

75

Other income

68

0

24

0

44

Share of profit from investments
under the equity method and other(expenses) income from investments

92

1

107

1

-15

Profit before finance result
and income taxes

505

4

712

5

-207

Interest income

49

0

46

0

3

Interest expense

-155

-1

-155

-1

0

Other financial result

-88

-1

-83

0

-5

Finance result

-194

-2

-192

-1

-2

Income taxes

-262

-2

-149

-1

-113

49

0

371

3

-322

Equity owners of the parent(Net income)

50

0

376

3

-326

Non-controlling interests

-1

0

-5

0

4

Profit for the period
Attributable to:

€

€

€

Basic

0.06

0.48

-0.42

Diluted

0.07

0.48

-0.41

Earnings per share

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

3

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

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

1 January 30 September 2016

1 January 30 September 2015

1,810

1,902

-2,171

519

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

-62

-63

Tax on items that will not be reclassified to profit or loss

605

-169

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

-420

163

Net change in fair value of cash flow hedges

2,974-3,717

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

-49

409

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

-35

-145

Tax on items that will be reclassified to profit or loss

-908

1,124

Other comprehensive income, net of tax-66-1,879Total comprehensive income of the period

1,744

23

Equity owners of the parent

1,721

45

Non-controlling interests

23

-22

Attributable to:

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

4

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

Unaudited Condensed Interim IFRS Consolidated Statements of Comprehensive
Income for the third quarter of 2016 and 2015
1 July 30 September 2016

1 July 30 September 2015

49

371

-460

-44

Actuarial gains or losses on defined benefit plans forinvestments accounted for using the equity method

-56

14

Tax on items that will not be reclassified to profit or loss

109

9(In € million)
Profit for the period
Items that will not be reclassified to profit or loss:
Actuarial gains or losses on defined benefit plans

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

-136

16

Net change in fair value of cash flow hedges

934

305

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

92

73

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

-8

-16

Tax on items that will be reclassified to profit or loss

-282

-113

Other comprehensive income, net of tax

193

244

Total comprehensive income of the period

242

615

Equity owners of the parent

234

622

Non-controlling interests

8-7

Attributable to:

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

5

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

Unaudited Condensed Interim IFRS Consolidated Statements of Financial Position
AssetsNon-current assets
Intangible assets
Property, plant and equipment
Investments accounted for under the equity method
Other investments and other long-term
financial assets
Non-current other financial assets
Non-current other assets
Deferred tax assets
Non-current securities
Current assets
Inventories
Trade receivables
Current portion of other long-term financial assets
Current other financial assets
Current other assets
Current tax assets
Current securities
Cash and cash equivalents (1)Assets and disposal group of assets
classified as held for sale
Total assets (1)Note

30 September 2016
In € million In %31 December 2015
In € million In %Deviation
In € million In %

10
10
11

11,837
16,660
1,794

10
15
2

12,555
17,193
1,326

12
16
1

-718
-533
468

-6
-3
35

12
14
15

3,515
1,114
2,273
7,450
9,660
54,303

3
1
2
7
9
49

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

2
1
2
7
9
50

1,023
18
107
691
-191
865

41
2
5
10
-2
2

33,481
7,640
648
1,094
2,930
901
1,518
5,694
53,906

31
7
1
1
3
1
1
5
50

29,051
7,877
178
1,402
2,819
860
1,788
6,590
50,565

28
7
0
1
3
1
2
6
48

4,430
-237
470
-308
111
41
-270
-896
3,341

15
-3
264
-22
4
5
-15
-14
7

1,197
109,406

1
100

1,779
105,782

2
100

-582
3,624

-33
3

773
8,297
-2,777
-5
6,288
8
6,296

1
8
-3
0
6
0
6

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

1
9
-4
0
6
0
6

-12
-1,503
1,539
298
322
1
323

-2
-15
-36
-98
5
14
5

17
18
14
15

11,1398,825
11,077
15,721
1,802
48,564

10
8
10
14
2
44

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

10
6
13
14
1
44

1,268
2,490
-2,961
465
602
1,864

13
39
-21
3
50
4

17
18

5,066
2,494
11,762
1,263
4,567
28,44853,600

5
2
11
1
4
26
49

5,209
2,790
10,864908
5,021
28,08652,878

5
2
10
1
5
27
50

-143
-296
898
355
-454
362
722

-3
-11
8
39
-9
1
1

946
103,110
109,406

1
94
100

231
99,809105,782

0
94
100

715
3,301
3,624

310
3
3

18

13
12
14
15
18
18

3

Total equity (2)Equity attributable to equity owners of the parent
Capital stockReserves
Accumulated other comprehensive income
Treasury shares
Non-controlling interests
16
Liabilities
Non-current liabilities
Non-current provisions
Long-term financing liabilities
Non-current other financial liabilities
Non-current other liabilities
Deferred tax liabilities
Current liabilities
Current provisions
Short-term financing liabilities
Trade liabilities (1)Current tax liabilities
Current other financial liabilities
Current other liabilities
Disposal group of liabilities
classified as held for sale
Total liabilities (1)Total equity and liabilities (1)

14
15

3

(1) Investments made by Airbus Group SE in certain securities and trade liabilities have been reassessed and reclassified.
Previous year figures are adjusted by €-899 million.
(2) As of 30 September 2016, the accumulated other comprehensive income, previously classified within equity relating toassets and disposal groups classified as held for sale, amounts to €-40 million.
The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.
6

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

Unaudited Condensed Interim IFRS Consolidated Statements of Cash Flows
1 January 30 September 2016

1 January 30 September 2015

1,811

1,900

-1

2

Depreciation and amortization

1,580

1,652

Valuation adjustments

263

548

Deferred tax (income) expense

-560

327

(In € million)

Note

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

Change in income tax assets, income tax liabilities and provisions for income tax

343

-142

-1,829-130

Results of companies accounted for under the equity method

-66

-844

Change in current and non-current provisions

206

-170

-203
-3,576-99-3,566-2,032-522-1,990-1,663Results on disposals of non-current assets

Reimbursement from / contribution to plan assets
Change in other operating assets and liabilities (1)Cash (used for) operating activities (1)18

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

36

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

-120

-13

- Proceeds from disposals of subsidiaries (net of cash)

731

-3

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

-502

-166

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

102

1,734

- Dividends paid by companies valued at equity

19

27

1,527

116

589

-2,209392-2,149Financing activities
Change in long-term and short-term financing liabilities

2,422

1,649

Cash distribution to Airbus Group SE shareholders-1,008

-945

-2

-2

Disposal of assets, liabilities and disposal group classified as held for sale
Change in securities
Cash provided by (used for) investing activities

18

Dividends paid to non-controlling interests
Changes in capital and non-controlling interests

54

153

-736

0

730

855

Net (decrease) of cash and cash equivalents

-52
-962

113
-1,703

Cash and cash equivalents at beginning of period (1) (2)

6,677

7,099

5,715

5,396

5,694

5,356

21

40

Share buyback
Cash provided by financing activities

18

Effect of foreign exchange rate changes on cash and cash equivalents

Cash and cash equivalents at end of period(1)

Thereof presented as cash and cash equivalents (1)Thereof presented as part of disposal group of assets classified as held for sale(1) Investments made by Airbus Group SE in certain securities and trade liabilities have been reassessed and reclassified.
Previous year figures are adjusted accordingly (cash and cash equivalents at 31 December 2015: €-899 million, at 30
September 2015: €-454 million, and at 31 December 2014: €190 million; change in other operating assets and liabilities for the
first nine months 2015: €-264 million).
(2) The cash and cash equivalents at the beginning of the period 2016 include €87 million, which is presented as part of assets
of disposal groups classified as held for sale.
The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.
7

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

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

Equityattributable
to equity ownersof the parent

Non-controllinginterests

7,061

18

Total
7,079

Profit for the period

1,900

2

1,902

Other comprehensive income-1,855-24-1,879

45

-22

23

-945

-3

-948

153

0

153

Equity transactions (IAS 27)

51

0

51

Share-based payment (IFRS 2)

29

0

29

Balance at 30 September 2015

6,394

-7

6,387

Balance at 1 January 2016

5,966

7

5,973

Profit for the period

1,811

-1

1,810

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

Other comprehensive income
Total comprehensive income
Cash distribution to shareholders / dividends
to non-controlling interests
Capital increase
Equity transactions
Change in treasury shares

-90

24

-66

1,721

23

1,744

-1,008-2-1,010

54

0

54

39

-20

19

-513

0

-513

Share-based payment (IFRS 2)

29

0

29

Balance at 30 September 2016

6,288

8

6,296

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

8

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

Notes to the Unaudited Condensed Interim IFRS Consolidated Financial Statements as
at 30 September 2016
1. The Company
The accompanying Unaudited Condensed Interim IFRS Consolidated Financial Statements present theoperations of Airbus Group SE and its subsidiaries (the “Group”) legally seated in Amsterdam (current registeredoffice at Mendelweg 30, 2333 CS Leiden, The Netherlands), and are prepared and reported in Euros (“€”). On 28
May 2015, the legal form of the Group changed from a Dutch public limited liability company (“N.V.”) to a
European company (“SE”) and is consistently subject to the laws of the Dutch Civil Code. The Group’s corebusiness is the manufacturing of commercial aircraft, civil and military helicopters, commercial space launchvehicles, missiles, military aircraft, satellites, defence systems and defence electronics and rendering of services
related to these activities. The Unaudited Condensed Interim IFRS Consolidated Financial Statements for thenine-month period ended 30 September 2016 were authorised for issue by the Airbus Group Board of Directors
on 25 October 2016.

2. Accounting policies
The Unaudited Condensed Interim Consolidated Financial Statements have been prepared in accordance with
International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board(“IASB”) as endorsed by the European Union (“EU”) as at 30 September 2016.
These Unaudited Condensed Interim Consolidated Financial Statements are prepared in compliance with IAS 34
and should be read in conjunction with Airbus Group’s Consolidated Financial Statements as of 31 December
2015. The amended Standards issued by the IASB which are applicable for the first time in 2016 and are effective
for Airbus Group as of 1 January 2016 have no impact on the Airbus Group’s Unaudited Condensed Interim
Consolidated Financial Statements.
Use of estimates and judgment
In preparing the Group’s Unaudited Condensed Interim Consolidated Financial Statements, Group’s management
makes assumptions and estimates. The underlying assumptions used for the main estimates are similar to thosedescribed in the Group’s Consolidated Financial Statements as of 31 December 2015. These estimates arerevised if the underlying circumstances have evolved or in light of new information.
The only exception is the estimate of income tax liabilities which is determined in the interim financial statements
using the estimated average annual effective income tax rate applied to the pre-tax income of the interim period.

9

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

3. Acquisitions and disposals
Acquisitions
On 9 March 2016, Airbus Division acquired 100% of the shares of the Navtech Inc. Group (“Navtech”), a
leading global provider of flight operations solutions. Airbus Group has recognised in goodwill an amount of€104 million. The allocation of the purchase price is ongoing and will be completed on 9 March 2017 at the latest.
Navtech provides aviation services with a suite of flight operations products, aeronautical charts, navigation datasolutions, flight planning, aircraft performance and crew planning solutions. Navtech generates annual revenues
around $40 million and employs over 250 employees, mainly based in Waterloo (Canada) and in Hersham andCardiff (UK).
Disposals
On 17 June 2015, Airbus Division signed an agreement with Singapore-based ST Aerospace Ltd. (“STA”) to offer
passenger-to-freighter (“P2F”) conversion solutions for its A320 and A321 aircraft. Elbe Flugzeugwerke’s(“EFW”), Dresden (Germany), assets and liabilities were classified as disposal groups held for sale as of 31
December 2015. On 4 January 2016, STA acquired an additional 20% of the shares by way of a contribution inkind and a capital increase to EFW, and consequently, Airbus lost the control of EFW. Airbus retains 45% of theshares of EFW with significant influence. Airbus has recognised in other income a €19 million gain during theperiod (reported in Airbus Division).
On 2 June 2016, Airbus DS Holding SAS (France) and Astrium International Holdings B.V. (Netherlands), as
beneficiaries, and a French private equity firm, Apax Partners, closed the sale of the business communications
entities. The assets and liabilities of these entities were previously classified as disposal groups held for sale.
The gain resulting from this transaction of €146 million is recognised in other income (reported in Airbus Defence
and Space Division).
On 14 June 2016, Airbus Group sold approximately 1.33 million shares in Dassault Aviation, around 62% toinstitutional investors and 38% to Dassault Aviation, at a price of €950 per share. The total gain on thesetransactions amounted to €528 million recognised in other income (reported in “Others/HQ/Conso.”).
The remaining investment, representing 9% of Dassault Aviation’s share capital, is now classified as otherinvestments and measured at fair value (see Note 12 “Other investments and other long-term financial assets”).
The resulting gain of €340 million is recognised in other income (reported in “Others/HQ/Conso.”). The investment
in Dassault Aviation was previously classified as asset held for sale.
Airbus Group also issued bonds exchangeable in Dassault Aviation shares (see Note 18 “Cash flows, securities
and financing liabilities – Financing liabilities”). In the event of exchange in full of the bonds, Airbus Group will
have fully disposed of its Dassault Aviation stake.
On 14 January 2015, Airbus Group and Safran completed the first phase of the integration process of Airbus
Safran Launchers (“ASL”) enabling the entity to become operational. Coordination and programmemanagement of the civil activities of the launcher business as well as relevant participations were transferred to
ASL. On 16 June 2015, ASL, the French state and the Centre National d'Etudes Spatiales (“CNES”), the French
space agency, reached an agreement to transfer CNES's stake in Arianespace to ASL, which was authorised on
20 July 2016 by the European Commission. On 12 August 2015, ASL was awarded the Ariane 6 development
contract by the European Space Agency (“ESA”).

10Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

On 20 May 2016, Airbus Group and Safran signed the second phase of the Master Agreement enabling the joint
venture to be fully equipped for all design, development, production and commercial activities related to civil andmilitary launchers and associated propulsion systems. On 30 June 2016, Airbus Group contributed the second
phase assets and liabilities in exchange for shares issued by Airbus Safran Launchers Holding, and also soldadditional assets in exchange for €750 million in cash. Airbus Group participation in ASL accounted for at-equity
amounts to €673 million. The loss of control in the business resulted in a capital gain of €1,139 million recognisedin other income (reported in Airbus Defence and Space Division). Airbus Group and Safran finalised therespective contribution balance sheet in the third quarter 2016 in alignment with the provision of the Master
Agreement. The allocation of the purchase price is currently ongoing at ASL level and is expected to be finalisedin the fourth quarter 2016.
Assets and disposal groups classified as held for sale
As of 30 September 2016, Airbus Group accounted for assets and disposal group of assets classified as held
for sale in the amount of €1,197 million (prior year-end: €1,779 million). Disposal group of liabilities classified
as held for sale as of 30 September 2016 amount to €946 million (prior year-end: €231 million). The assets anddisposal groups classified as held for sale are related to the defence electronics companies.
On 18 March 2016, Airbus Group reached an agreement with affiliates of KKR & Co. L.P. (the acquirer) to sell its
defence electronics business, a leading global provider of mission-critical sensors, integrated systems andservices for premium defence and security applications mainly based in Ulm (Germany). Such divestment is partof the strategic review of the Airbus Defence and Space business portfolio. The transaction is expected to beclosed within 12 months of the date of the agreement. The assets and liabilities relative to this disposal group
have been classified as held for sale since 31 March 2016.

4. Related party transactions
The Group has entered into various transactions with related entities that have all been carried out in the normal
course of business.
The Group participates in the UK in several funded trustee-administered pension plans. In some of these, BAE
Systems is the principal employer. On 2 April 2016, the scheme trustees have approved the allocation of the
deficit of the BAE Systems Pension Scheme (“Main Scheme”) to BAE Systems and Airbus (“sectionalisation”).

11Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

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

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

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



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

The following table presents information with respect to the Group’s business segments. As a rule, inter-segment
transfers are carried out on an arm’s length basis. Inter-segment sales predominantly take place between Airbus
and Airbus Defence and Space and between Airbus Helicopters and Airbus. The holding function of the Group’s
Headquarters, the Airbus Group Bank and other activities not allocable to the reportable segments, combined
together with consolidation effects, are disclosed in the column “Others/HQ/Conso.”.

12

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

Business segment information for the nine-month period ended 30 September 2016:(In € million)

AirbusAirbusHelicopters

Total revenues

31,511

4,282

Internal revenues

AirbusDefenceand Space
7,714

Total
Others/segments HQ/Conso.
43,50736

Consolidated
43,543

-393

-358

-85

-836

-2

-838

Revenues

31,118

3,924

7,629

42,671

34

42,705

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

EBIT pre-goodwill imp.
and exceptionals

775

200

583

1,558

805

2,363

Impairment anddisposal of goodwill

0

0

0

0

0

0

Exceptionals

-2

0

-4

-6

-1

-7

773

200

579

1,552

804

2,356

Profit before financeresult and income taxes
Finance result-342

Income taxes-204

Profit for the period

1,810

Business segment information for the nine-month period ended 30 September 2015:
AirbusDefenceand Space(In € million)

AirbusAirbusHelicopters

Total revenues

31,119

4,423

8,383

43,925

203

44,128Internal revenues

-562

-446

-151

-1,159-4-1,163

Revenues

30,557

3,977

8,232

42,766

199

42,965

Research anddevelopment expenses-1,732-221-245-2,198-89-2,287

EBIT pre-goodwill imp.
and exceptionals

1,902

241

149

2,292

654

2,946

Impairment anddisposal of goodwill
Exceptionals
Profit before financeresult and income taxes

Total
Others/segments HQ/Conso.

Consolidated

0

0

0

0

0

0

-13

0

-9

-22

-2

-24

1,889

241

140

2,270

652

2,922

Finance result-536

Income taxes-484

Profit for the period

1,902

13

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

6. Revenues, gross margin and profit before finance result and income taxes
Revenues of €42,705 million (first nine months 2015: €42,965 million) decreased by €-260 million, mainly at
Airbus Defence and Space (€-669 million) due to perimeter changes for defence activities (see Note 3“Acquisitions and disposals”). This is compensated by an increase at Airbus (€+392 million).
The gross margin decreased by €-2,257 million to €3,766 million compared to €6,023 million in the first ninemonths 2015, mainly at Airbus and Airbus Defence and Space. This includes additional net charges recorded in
the second quarter 2016 in Airbus Defence and Space for €1,026 million on the A400M programme and in Airbus
for €385 million on the A350 XWB programme. Additionally, in Airbus it reflects the lower deliveries of A330
aircraft and a foreign exchange impact.
The gross margin rate decreased from 14.0% to 8.8%.
In the first nine months 2016, Airbus has delivered 26 A350 XWB aircraft with 5 new Head of Versions.
To reflect expected lower revenues escalation, increased learning curve costs and delivery phasing, Airbus
recorded a net charge of €385 million on A350 XWB loss making contracts in the second quarter 2016.
The industrial ramp-up is progressing and associated risks continue to be closely monitored in line with theschedule, aircraft performance and overall cost envelope, as per customer’s commitment. Despite the progress
made, challenges remain with the ramp-up acceleration.
11 A400M aircraft were delivered during the first nine months 2016.
The first major development milestone of the mission capability roadmap defined with customers earlier this year
was successfully completed in June with certification and delivery of “MSN 33”, the 9th aircraft for the Frenchcustomer.
Industrial efficiency and military capability remain a challenge for the A400M programme. Furthermore, the EASA
Airworthiness Directive, linked to the Propeller Gear Box (“PGB”) on the engine, and various PGB quality issues
have strongly impacted the customer delivery program. Management has subsequently reviewed the programmeevolution and estimated contract result incorporating the implications at this time of the revised engine
programme and its associated recovery plan, technical issues related to the aluminium alloy used for some parts
within the aircraft, recurring cost convergence issues and finally some delays, escalation and cost overruns in thedevelopment program. As a result of this review, including an updated assumption of export orders during thelaunch contract phase, Airbus Defence and Space recorded an additional net charge of €1,026 million.
Commercial negotiations with OCCAR and the Nations are yet to take place with regard to the revised delivery
schedule and its implications. As of today, the outcome of these negotiations cannot be reliably estimated. The
potential impacts on the financial statements could be significant.
The A400M contractual SOC 1 and 1.5 milestones remain to be achieved. SOC 1 fell due end October 2013 and
SOC 1.5 fell due end December 2014. The associated termination rights became exercisable by OCCAR on 1
November 2014 and 1 January 2016, respectively. SOC 2 fell due end December 2015 and is still in the 12-month
grace period. Management judges that it is highly unlikely that any of these termination rights will be exercised.
The A400M programme remains in a critical phase and the associated risks will continue to be closely monitored.
The profit before finance result and income taxes decreased by €-566 million to €2,356 million compared to€2,922 million in the first nine months 2015, mainly driven by the decrease in gross margin and in share of profit
from investments under the equity method and other income from investments, partly compensated by anincrease in other income.

14

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

Share of profit from investments under the equity method and other income from investments decreasedby €-831 million to €78 million compared to €909 million in the first nine months 2015, which included a net gain of€674 million from the partial sale of Dassault Aviation shares.
Other income increased by €+2,126 million to €2,422 million compared to €296 million in the first nine months
2015. This increase is due to the capital gain of €1,139 million following the creation of ASL, the capital gain fromthe sale of Dassault Aviation shares of €528 million and the revaluation at fair value of the remaining investment
in Dassault Aviation for €340 million (see Note 3 “Acquisitions and disposals”).

7. Finance result
Finance result improved by €+194 million to €-342 million compared to €-536 million in the first nine months
2015. This is mainly related to a positive impact from revaluation of financial instruments of €+122 million and to a
positive impact from interest result of €+95 million.

8. Income tax
The income tax expense of €-204 million (first nine months 2015: €-484 million) corresponds to an effective tax
rate of 10.1% (first nine months 2015: 20.3%). This is due to the sale of shares of Dassault Aviation and thecreation of ASL, both of which have been taxed at a reduced rate (see Note 3 “Acquisitions and disposals”), andin addition the recognition of a deferred tax asset related to the update of the loss making provisions.

9. Earnings per share

1 January 30 September 2016

1 January 30 September 2015

Profit for the period attributable to equity owners of the parent(Net income)€1,811 million€1,900 million

Weighted average number of ordinary shares outstanding

774,211,224

786,189,743

€2.34

€2.42

Basic earnings per share

Basic earnings per share

Diluted earnings per share – The Group’s categories of dilutive potential ordinary shares are stock options,share-settled performance units for Executive Committee members relating to long-term incentive plans and theconvertible bond issued on 1 July 2015. During the first nine months 2016, the average price of Airbus Group
shares exceeded the exercise price of the stock option plans as well as the share-settled performance units andtherefore 282,203 shares (in the first nine months 2015: 669,128 shares) were considered in the calculation ofdiluted earnings per share. The dilutive effect of the convertible bond was also considered in the calculation ofdiluted earnings per share in the first nine months 2016, by adding back €5 million of interest expense to the profit
for the period attributable to equity owners of the parent (in the first nine months 2015: no adjustment) and byincluding 5,022,990 of dilutive potential ordinary shares.

1 January 30 September 2016

1 January 30 September 2015

Profit for the period attributable to equity owners of the parent(Net income)€1,816 million€1,900 million

Weighted average number of ordinary shares outstanding(diluted)(1)

779,516,417

786,858,871

€2.33

€2.41

Diluted earnings per share

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

15

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

10. Intangible assets and property, plant and equipment
Intangible assets decreased by €-718 million to €11,837 million (prior year-end: €12,555 million) mainly due tothe reclassification of defence electronics entities to disposal groups classified as held for sale and the creation of
ASL, partially compensated by the acquisition of Navtech (see Note 3 “Acquisitions and disposals”).
Intangible assets mainly relate to goodwill of €9,295 million (prior year-end: €9,907 million).
The annual impairment tests were performed in the fourth quarter 2015 and led to no impairment charge.
Property, plant and equipment decreased by €-533 million to €16,660 million (prior year-end: €17,193 million)
mainly at Airbus Defence and Space (€-650 million), primarily driven by the entities both disposed and reclassified
to disposal groups classified as held for sale (see Note 3 “Acquisitions and disposals”). Property, plant andequipment also includes leased assets of €98 million (prior year-end: €118 million) and investment property
amounting to €65 million (prior year-end: €66 million).

11. Investments accounted for under the equity method
Investments accounted for under the equity method increased by €+468 million to €1,794 million (prioryear-end: €1,326 million) mainly due to the increase of Airbus Group participation in ASL following finalisation of
the joint venture creation (see Note 3 “Acquisitions and disposals”).

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

30 September 201631 December 2015

Other investments

1,878

1,232

Other long-term financial assets

1,637

1,260

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

3,515

2,492

Current portion of other long-term financial assets
Total

648

178

4,163

2,670

Other investments and other long-term financial assets increased by €+1,493 million to €4,163 million(prior year-end: €2,670 million) mainly due to the reclassification of the remaining investment in Dassault Aviation
to other investments (see Note 3 “Acquisitions and disposals”).
Other long-term financial assets mainly comprise the Group’s aircraft financing activities.

13. Inventories
Inventories of €33,481 million (prior year-end: €29,051 million) increased by €+4,430 million. This is mainly
related to Airbus (€+5,244 million), principally due to work in progress mainly associated with A350 XWB ramp-up
and A320 programme. This was partly compensated by a decrease in Airbus Defence and Space (€-1,161
million), mainly related to the reclassification of defence electronics entities to disposal groups classified as held
for sale and the creation of ASL (see Note 3 “Acquisitions and disposals”).
Inventories are presented net of the respective portion of the loss making contracts provision (see Note 17“Provisions”).

16Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

14. Other financial assets and other financial liabilities
Composition of other financial assets:(In € million)
Positive fair values of derivative financial instruments
Others30 September 201631 December 2015

1,030

931

84

165

Total non-current other financial assets

1,114

1,096

Receivables from related companies

456

616

Positive fair values of derivative financial instruments

237

349

Others401

437

Total current other financial assets

1,094

1,402

Total

2,208

2,498

30 September 201631 December 2015

European Governments refundable advances

6,427

6,716

Liabilities for derivative financial instruments

4,100

6,703

550

619

11,077

14,038Composition of other financial liabilities:(In € million)

OthersTotal non-current other financial liabilities
European Governments refundable advances

635

570

Liabilities for derivative financial instruments

3,216

3,884

716

567

Total current other financial liabilities

4,567

5,021

Total

15,644

19,059OthersThe liabilities for derivative financial instruments have decreased significantly as a result of the devaluation of the
US dollar versus the euro associated with the mark to market valuation of the hedge portfolio.

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

30 September 201631 December 2015

2,185

2,051

88

115

Total non-current other assets

2,273

2,166

VAT receivables

1,725

1,450

Prepaid expenses

729

663

Other

476

706

Total current other assets

2,930

2,819

Total

5,203

4,985

Prepaid expenses
Others17

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

Composition of other liabilities:(In € million)

30 September 201631 December 2015

14,977

14,472

506

521

238

263

15,721

15,256

Customer advance payments

23,90023,612

Tax liabilities (excluding income tax)

1,016

885

Others

2,470

2,540

Deferred income

1,062

1,049

Total current other liabilities

28,44828,086

Total

44,16943,342Other liabilities
Customer advance payments
OthersDeferred income
Total non-current other liabilities
Other liabilities

16. Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts to€6,288 million (prior year-end: €5,966 million) representing an increase of €+322 million. This is due to a net
income for the period of €+1,811 million, partly offset by a dividend payment of €-1,008 million (€1.30 per share),the share buyback programme of €-513 million, which was completed during the second quarter 2016 for a totalof €1 billion, and a reduction in other comprehensive income of €-90 million.
The total number of shares issued is 772,712,046 and 785,344,784 as of 30 September 2016 and 31 December
2015, respectively. The Group’s shares are exclusively ordinary shares with a par value of €1.00.
During the first nine months 2016, the number of treasury stock held by Airbus Group decreased to 280,954
compared to 1,474,057 as of 31 December 2015. No shares were sold back to the market, and 14,131,131
shares were cancelled (in the first nine months 2015: 0 shares).
In the first nine months 2016, the Group issued 131,500 new shares due to the exercise of stock options (in thefirst nine months 2015: 2,949,529 shares).
Non-controlling interests increased to €8 million (prior year-end: €7 million). This increase results mainly fromthe mark to market revaluations of the hedge portfolio, partly offset by the impact of the change in consolidation
method of EFW (see Note 3 “Acquisitions and disposals”).

18Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 201617. Provisions
Provisions are comprised of the following:(In € million)

30 September 201631 December 2015

Provisions for pensions

9,264

7,615

Other provisions

6,941

7,465

Total

16,20515,080

Thereof non-current portion

11,139

9,871

Thereof current portion

5,066

5,209

Provisions for pensions increased mainly due to a decrease of the discount rates for the various pension
schemes of the Group (France: from 2.5% to 1.3%, Germany: from 2.4% to 1.2% and UK from 3.9% to 2.3%).
The decrease in other provisions is due in part to the release, utilisation and net presentation of programme
losses against inventories (see Note 13 “Inventories”), and the reclassification to disposal group of liabilities
classified as held for sale relating to Defence electronics entities (see Note 3 “Acquisitions and disposals”).
The Group makes estimates and provides, across the programmes, for costs related to in service technical issues
which have been identified and for which solutions have been defined, which reflects the latest facts andcircumstances. The Group is contractually liable for the repair or replacement of the defective parts but not for any
other damages whether direct, indirect, incidental or consequential (including loss of revenue, profit or use).
However, in view of overall commercial relationships, contract adjustments may occur, and be considered on acase by case basis.
The agreement on insurance reimbursement that was under negotiation at year-end 2015 was settled during thefirst half-year 2016.
An H225 Super Puma helicopter was involved in an accident on 29 April 2016. Management is cooperating fully
with the authorities to determine the precise cause of the accident. On the basis of recent developments, anestimate of the related future costs has been prepared and consequently a provision has been recorded in theaccounts as of 30 September 2016.

18. Cash flows, securities and financing liabilities
Cash flows
Cash (used for) operating activities amounts to €-2,032 million (first nine months 2015 adjusted: €-522 million).
Gross cash flow from operations (before changes in other operating assets and liabilities) amounts to €+1,544
million (first nine months 2015: €+3,044 million). Changes in other operating assets and liabilities amount to €3,576 million (first nine months 2015 adjusted: €-3,566 million).
Cash provided by (used for) investing activities amounts to €+392 million (first nine months 2015: €-2,149
million). This includes the impact of disposals which occurred during the first nine months 2016 (see Note 3“Acquisitions and disposals”) for a total of €+2,360 million (first nine months 2015: €+1,847 million). This waspartly compensated by purchases of intangible assets and property, plant and equipment of €-1,990 million (firstnine months 2015: €-1,663 million).

19

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

Cash provided by financing activities amounts to €+730 million (first nine months 2015: €+855 million). This
mainly comprises changes in long-term and short-term financing liabilities of €+2,422 million (first nine months
2015: €+1,649 million) mainly due to the issuance of bonds (see Note 18 “Cash flows, securities and financing
liabilities – Financing liabilities”), in part offset by a dividend payment of €1.30 per share which amounts to€-1,008 million (first nine months 2015: €-945 million) and the share buyback programme of €-736 million (firstnine months 2015: €0 million).
Securities
Non-current securities with a remaining maturity of more than one year decreased by €-191 million to €9,660
million (prior year-end: €9,851 million). The movement is related to the cash management policy of the Group.
Current securities with a remaining maturity of one year or less decreased by €-270 million to €1,518 million(prior year-end: €1,788 million).
Financing liabilities
Composition of financing liabilities:(In € million)

30 September 201631 December 2015

Bonds

6,147

3,443

Liabilities to financial institutions

1,989

2,113

Loans

319

403

Liabilities from finance leases

369

375

Others11Long-term financing liabilities

8,825

6,335

Bonds

1,133

1,523

Liabilities to financial institutions

126

349

Loans

219

255

Liabilities from finance leases

14

13

Others

1,002

650

Short-term financing liabilities

2,494

2,790

The increase in financing liabilities is mainly related to the issuance of bonds (€+2.5 billion) and to commercial
paper programmes (€+628 million, included in short-term bonds).
The increase in bonds corresponds to a bond issued on 13 May 2016, for a total of €1.5 billion, with a
10 year-maturity tranche of €600 million at a 0.875% coupon, and a 15 year-maturity tranche of €900 million at a1.375% coupon. Additionally, exchangeable bonds to be convertible into Dassault Aviation shares were issued for€1,078 million on 14 June 2016, with a 5 year-maturity. These bonds bear a coupon of 0% and were issued at103.75% of par. Their effective interest rate, after separation of the equity conversion option, is 0.6415% (seeNote 3 “Acquisitions and disposals”).

20Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

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

30 September 201631 December 2015

1,030

931

Non-current positive fair values
Current positive fair values

237

349

1,267

1,280

Non-current liabilities-4,100-6,703Current liabilities-3,216-3,884

Total liabilities for derivative financial instruments-7,316-10,587

Total net fair value of derivative financial instruments-6,049-9,307

Total positive fair values of derivative financial instruments

The volume of hedged US dollar-contracts was US$101.0 billion(1)

as at 30 September 2016 (prior year-end

US$101.9 billion). The US dollar spot rate was 1.12 US$/€ and 1.09 US$/€ at 30 September 2016 and at 31
December 2015, respectively. The average US dollar hedge rate for the hedge portfolio of the Group decreased
to 1.26 US$/€ as at 30 September 2016 compared to 1.28 US$/€ as at 31 December 2015.
(1) including $1.5 billion of new hedges entered into to address intra-year shifts in net exposure linked to delivery phasing.

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

30 September 2016
(In € million)

31 December 2015

Book value

Fair value

Book value

Fair value

Issued bonds and commercial papers-7,280-7,664-4,966-5,091

Liabilities to financial institutions
and other financing liabilities-3,656-3,653-3,771-3,822Financing liabilities

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

21

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

The following table allocates the financial assets and liabilities measured at fair value to the three levels of the fair(1)value hierarchy :30 September 2016
(In € million)

31 December 2015

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

1,510

0

0

1,510

828

0

0

828

0

1,256

11

1,267

0

1,234

46

1,280

11,1762

0

11,178

11,474165

0

11,639

2,757

1,133

0

3,890

3,042

2,130

0

5,172

15,4432,391

1117,845

15,344

3,529

46

18,919Derivative instruments

0-7,3160-7,3160-10,5870-10,587

Other liabilities

0

0

-35

-35

0

0

-74

-74

0

-7,316-35-7,351

0-10,587-74-10,661

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

(2)

(2)

Financial liabilities measured
at fair value

Total(1) The fair value hierarchy consists of the following levels:- Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities;- Level 2: inputs other than quoted prices that are observable for the asset or liability, either directly (i.e. as prices) orindirectly (i.e. derived from prices);- Level 3: inputs for the asset or liability that are not based on observable market data.
(2) Investments made by Airbus Group SE in certain securities and trade liabilities have been reassessed and reclassified.
Previous year figures are adjusted by €-899 million.

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

Financial assets(In € million)
Balance at 1 January 2015
Profit or loss
Other comprehensive income
Settlements
Balance at 30 September 2015
Balance at 1 January 2016
Profit or loss
Settlements
Balance at 30 September 2016

Financial liabilites

Commodity
Writtenswap
Derivative put options on
Earn-out
Other
agreements instruments NCI interests agreements liabilities
2
2
-127
-10
-137
10
10
-1
0
-1
0
0
51
0
51
-1
-1
3
0
3
11
11
-74
-10
-84
46
-10
-25
11

46
-10
-25
11

-64
0
39
-25

-10
0
0
-10

-74
0
39
-35

For a description of the valuation techniques, inputs and process used in the fair value measurement of thesefinancial instruments and a description of sensitivity analysis performed refer to Note 35.2 of the Consolidated
Financial Statements. There is no material difference between the outcome of sensitivity analysis performed
at 30 September 2016, compared to the outcome disclosed in the year-end financial statements.

22

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

20. Litigation and claims
Airbus Group is involved from time to time in various legal and arbitration proceedings in the ordinary course of its
business, the most significant of which are described below. Other than as described below, Airbus Group is notaware of any material governmental, legal or arbitration proceedings (including any such proceedings which are
pending or threatened), during a period covering at least the previous twelve months which may have, or have
had in the recent past significant effects on Airbus Group SE’s or the Group’s financial position or profitability.
If the Group concludes that the disclosures relative to contingent liabilities can be expected to prejudice seriously
its position in a dispute with other parties, the Group limits its disclosures to the nature of the dispute.
WTO
Although Airbus Group is not a party, Airbus Group is supporting the European Commission in litigation before the
WTO. Following its unilateral withdrawal from the 1992 EU-US Agreement on Trade in Large Civil Aircraft, the US
lodged a request on 6 October 2004 to initiate proceedings before the WTO. On the same day, the EU launched aparallel WTO case against the US in relation to its subsidies to Boeing. On 19 December 2014, the European
Union requested WTO consultations on the extension until the end of 2040 of subsidies originally granted by theState of Washington to Boeing and other US aerospace firms until 2024.
On 1 June 2011, the WTO adopted the Appellate Body’s final report in the case brought by the US assessing
funding to Airbus from European governments. On 1 December 2011, the EU informed the WTO that it had taken
appropriate steps to bring its measures fully into conformity with its WTO obligations, and to comply with the
WTO’s recommendations and rulings. Because the US did not agree, the matter is now under WTO review
pursuant to WTO rules.
On 23 March 2012, the WTO adopted the Appellate Body’s final report in the case brought by the EU assessing
funding to Boeing from the US. On 23 September 2012, the US informed the WTO that it had taken appropriate
steps to bring its measures fully into conformity with its WTO obligations, and to comply with the WTO’s
recommendations and rulings. Because the EU did not agree, the matter is now under WTO review pursuant to
WTO rules.
Exact timing of further steps in the WTO litigation process is subject to further rulings and to negotiations between
the US and the EU. Unless a settlement, which is currently not under discussion, is reached between the parties,
the litigation is expected to continue for several years.
GPT
Promptedbyawhistleblower’s

allegations,AirbusGroup

conducted

internal

auditsandretained

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

23

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

Eurofighter Austria
In March 2012, the German public prosecutor, following a request for assistance by the Austrian publicprosecutor, launched a criminal investigation into alleged bribery, tax evasion and breach of trust by current andformer employees of EADS Deutschland GmbH (renamed on 1 July 2014 Airbus Defence and Space GmbH) andEurofighter Jagdflugzeug GmbH as well as by third parties relating to the sale of Eurofighter aircraft to Austria in
2003. After having been informed of the investigation in 2012, Airbus Group retained the law firm Clifford Chance
to conduct a fact finding independent review. Upon concluding its review, Clifford Chance presented its fact
finding report to Airbus Group in December 2013. Airbus Group provided the report to the public prosecutors inGermany. The Prosecutor’s office has requested a number of interviews with suspects in October 2016. Airbus
Defence and Space GmbH settled with the tax authorities in August 2016 on the question of deductibility of
payments made in connection with the Eurofighter Austria campaign. Airbus Group is cooperating fully with theauthorities.
Investigation by the UK SFO into Civil Aviation BusinessIn the context of review and enhancement of its internal compliance improvement programme, the Groupdiscovered misstatements and omissions relating to information provided in respect of third party consultants incertain applications for export credit financing for Airbus customers. In early 2016 the Group informed the UK,
German and French Export Credit Agencies (“ECAs”) of the irregularities discovered. The Group made a similar
disclosure to the UK Serious Fraud Office (“SFO”). In August 2016, the SFO informed the Group that it had
opened an investigation into allegations of fraud, bribery and corruption in the civil aviation business of Airbus
Group relating to irregularities concerning third party consultants. The Group is cooperating fully with the SFO.
The SFO investigation and any enforcement action potentially arising as a result could have negative
consequences for the Group. The potential imposition of any monetary penalty (and the amount thereof) arisingfrom the SFO investigation would depend on factual findings, and as such it is too early to determine thelikelihood or extent of any liability. Investigations of this nature could also result in (i) civil claims or claims byshareholders against the Group (ii) adverse consequences on the Group’s ability to obtain or continue financing
for current or future projects (iii) limitations on the eligibility of Group companies for certain public sector contracts
and/or (iv) damage to the Group’s business or reputation via negative publicity adversely affecting the Group’s
prospects in the commercial market place.
ECA Financing
As mentioned previously, some ECA financing is temporarily suspended. The Group is working with the relevant
ECAs to re-establish ECA financing.
Other investigations
In October 2014, the Romanian authorities announced an investigation relating to a border surveillance project inRomania. Airbus Group confirms that Airbus Defence and Space GmbH had been informed that the German
prosecution office is also investigating potential irregularities in relation to this project, a project in Saudi Arabia
and a project of Tesat-Spacecom GmbH & Co. KG. The public prosecutor in Germany has launchedadministrative proceedings in the context of those investigations against Airbus Defence and Space GmbH and
Tesat-Spacecom GmbH & Co. KG. Airbus Group has cooperated fully with the authorities. In October 2016, theGerman authorities announced that they were dropping their investigations into the Romanian and Saudi projects.
The tax authorities may challenge the tax treatment of business expenses in connection with the Romanian andSaudi projects.

24Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

In 2013, public prosecutors in Greece and Germany launched investigations into a current employee and former
managing directors and employees of Atlas Elektronik GmbH (“Atlas”), a joint company of ThyssenKrupp andAirbus Group, on suspicion of bribing foreign officials and tax evasion in connection with projects in Greece. The
public prosecutor in Germany has launched an administrative proceeding for alleged organisational andsupervisory shortfalls against Atlas. The authorities in Greece have launched civil claims against Atlas. In 2015
the public prosecutor in Germany launched another investigation into current and former employees andmanaging directors of Atlas on suspicion of bribery and tax evasion in connection with projects in Turkey andextended the investigation in 2016 to five current and former employees of Atlas’ shareholders. A further
investigation was also launched against two former Atlas employees on suspicion of bribery in connection withprojects in Pakistan. In 2016 two further investigations were started by the Bremen public prosecutor with regard
to operations in Indonesia and Thailand. With the support of its shareholders, Atlas is cooperating fully with theauthorities and is conducting its own internal investigation. Settlement talks with the Bremen public prosecutor areplanned to start in November 2016.
Airbus Group is cooperating with a judicial investigation against unknown persons in France related to
Kazakhstan. Airbus Group is cooperating with French judicial authorities pursuant to a request for mutual legal
assistance made by the government of Tunisia in connection with historical aircraft sales.
Review of business partner relationships
In light of regulatory investigations and commercial disputes, including those discussed above, the Group hasdetermined to enhance certain of its policies, procedures and practices, including ethics and compliance. The
Group is accordingly in the process of revising and implementing improved procedures, including those withrespect to its engagement of consultants and other third parties, in particular in respect of sales support activities
and is conducting enhanced due diligence as a pre-condition for future or continued engagement and to inform
decisions on corresponding payments. The Group has therefore engaged legal, investigative, and forensic
accounting expertise of the highest calibre to undertake a comprehensive review of all relevant third party
business consultant relationships and related subject matters. The Group believes that these enhancements to its
controls and practices will best position it for the future, particularly in light of advancements in regulatory
standards. As a result of the suspension of payments during the enhanced due diligence process, certain
consultants and other third parties have initiated commercial litigation and arbitration against the Group alleging
breach of contract and seeking relief. The Group cannot exclude that the comprehensive review and theseenhancements of its controls and practices lead to additional commercial disputes or other civil law consequencesin the future.
Commercial disputes
In May 2013, the Group has been notified of a commercial dispute following the decision taken by the Group tocease a partnership for sales support activities in some local markets abroad. The Group believes it has solid
grounds to legally object to the alleged breach of a commercial agreement. However, the consequences of thisdispute and the outcome of the proceedings cannot be fully assessed at this stage. The arbitration will not becompleted until 2017 at the earliest.
In the course of another commercial dispute, the Group received a statement of claim alleging liability forrefunding part of the purchase price of a large contract which the customer claims it was not obliged to pay. The
dispute is currently the subject of arbitration.

25

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the nine-month period ended 30 September 2016

21. Number of employees
The number of employees as at 30 September 2016 is 132,973 as compared to 136,574 as at 31 December
2015.

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

26