Year 2015 Report

Unaudited Condensed IFRS Consolidated
Financial Information of Airbus Group SE
for the year ended 31 December 2015
Unaudited Condensed IFRS Consolidated Income Statements ........................................................................ 2
Unaudited Condensed IFRS Consolidated Statements of Comprehensive Income ........................................ 3
Unaudited Condensed IFRS Consolidated Statements of Financial Position.................................................. 4
Unaudited Condensed IFRS Consolidated Statements of Cash Flows ............................................................ 5
Unaudited Condensed IFRS Consolidated Statements of Changes in Equity ................................................. 6
Notes to the Unaudited Condensed IFRS Consolidated Financial Statements as at 31 December 2015 ...... 7
1.

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

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

3.

Acquisitions and disposals .................................................................................................................... 7

4.

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

5.

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

6.

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

7.

Income taxes .......................................................................................................................................... 12

8.

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

9.

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

10.

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

11.

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

12.

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

13.

Other financial assets ........................................................................................................................... 14

14.

Other assets ........................................................................................................................................... 14

15.

Securities ............................................................................................................................................... 14

16.

Assets and disposal groups classified as held for sale .................................................................... 14

17.

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

18.

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

19.

Financing liabilities ............................................................................................................................... 16

20.

Other financial liabilities ....................................................................................................................... 16

21.

Other liabilities....................................................................................................................................... 17

22.

Cash flows ............................................................................................................................................. 17

23.

Related party transactions ................................................................................................................... 17

24.

Litigation and claims ............................................................................................................................. 18

25.

Number of employees ........................................................................................................................... 20

26.

Subsequent events................................................................................................................................ 20

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

Unaudited Condensed IFRS Consolidated Income Statements

Note
Revenues

1 January 31 December 2015
M€%

5

1 January 31 December 2014
M€%

Deviation
M€

64,450100

60,713100

3,737-55,599-86-51,776-85-3,823

8,851

14

8,937

15

-86

Selling, administrative and other expenses-2,873-5-2,780-4-93

Research and development
expenses-3,460-5-3,391

-6

-69

474

1

330

1

144

1,070

1

895

1

175

4,062

6

3,991

7

71

Interest income

183

0

142

0

41

Interest expense

-551

-1

-462

-1

-89

Cost of sales
Gross margin

5

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

5

Other financial result

-319

0

-458

-1

139

Finance result

6

-687

-1

-778

-2

91

Income taxes

7

-677

-1

-863

-1

186

2,698

4

2,350

4

348

2,696

4

2,343

4

353

2

0

7

0

-5

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

€

€

€

Basic

3.43

2.99

0.44

Diluted

3.42

2.99

0.43

Earnings per share

8

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

2

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Income1 January 31 December 2015

1 January 31 December 2014

2,698

2,350

761

-2,034

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

-36

-131

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

-235

577

in M €
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

222

244

-4,699-6,390Net change in fair value of available-for-sale financial assets

368

71

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

-142

-22

Tax on items that will be reclassified to profit or loss

1,112

1,961

Other comprehensive income, net of tax-2,649-5,72449-3,374Equity owners of the parent

76-3,362

Non-controlling interests

-27

-12

Net change in fair value of cash flow hedges

Total comprehensive income of the period
Attributable to:

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

3

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

Unaudited Condensed IFRS Consolidated Statements of Financial Position
31 December 2015
M€%

31 December 2014
M€%

Deviation
M€

%

9
9
10
11
13
14
7
15

12,555
17,193
1,326
2,492
1,096
2,166
6,759
9,851
53,438

12
16
1
2
1
2
7
9
50

12,75816,388
3,391
1,769
586
1,822
5,717
5,989
48,420

13
17
4
2
1
2
6
6
51

-203
805
-2,065
723
510
344
1,042
3,862
5,018

-2
5
-61
41
87
19
18
64
10

12

29,0517,877

27
725,355
6,798

26
7

3,696
1,079

15
16

11
13
14

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

0
1
3
1
2
7
48

167
1,164
2,389
605
3,183
7,271
46,932

0
1
2
1
3
8
48

11
238
430
255
-1,395
218
4,532

7
20
18
42
-44
3
10

1,779
106,6812
100

750
96,102

1
100

1,029
10,579

137
11

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

1
9
-4
0
6
0
6

785
7,489
-1,205
-8
7,061
18
7,079

1
7
-1
0
7
0
7

0
0
2,311
31
-3,111
258-295 3,688-1,095-16-11-61-1,106
-16

18
19
20
21
7

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

10
6
13
14
1
44

10,4006,278
9,922
13,1161,130
40,846

11
7
10
14
1
43

-529
57
4,116
2,140
70
5,854

-5
1
41
16
6
14

18
19

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

5
2
11
1
5
26
50

5,712
1,073
10,183738
3,480
26,31147,497

6
1
11
1
4
26
49

-503
1,717
1,580
170
1,541
1,775
6,280

-9
160
16
23
44
7
13

231
100,708
106,681

0
94
100

680
89,023
96,102

1
93
100

-449
11,685
10,579

-66
13
11

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

15
22

16

Total equity (1)Equity attributable to equity owners of the parent
Capital stockReserves
Accumulated other comprehensive income
Treasury shares
Non-controlling interests
17
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
Current tax liabilities
Current other financial liabilities
Current other liabilities
Disposal group of liabilities
classified as held for sale
Total liabilities
Total equity and liabilities

20
21

16

(1) As of 31 December 2015, the accumulated other comprehensive income in equity relating to non-current assets and disposalgroup classified as held for sale amounts to -111 M €.
The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.
4

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

Unaudited Condensed IFRS Consolidated Statements of Cash Flows
1 January 31 December 2015

1 January 31 December 2014

2,696

2,343

2

7

Depreciation and amortization

2,466

2,150

Valuation adjustments

714

961

Deferred tax expensein M €

Note

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

16

317

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

-50

148

Results on disposals of non-current assets

-234

-93

Results of companies accounted for under the equity method-1,016-840

Change in current and non-current provisions

-54

415

Reimbursement from / contribution to plan assets

-217
-723

-462
-2,386

3,600

2,560

-2,924-2,548- Proceeds from disposals of intangible assets, PPE

78

232

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

-13

-47

- Proceeds from disposals of subsidiaries (net of cash)

127

-34

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

-258

-36

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

1,731

1,083

- Dividends paid by companies valued at equity

34

143

Change in other operating assets and liabilities
Cash provided by operating activities

22

Investment activities- Purchases of intangible assets, PPE

Disposal of assets, liabilities and disposal group classified as held for sale127

0-2,361-2,016-3,459-3,223Financing activities
Change in long-term and short-term financing liabilities

992

930

Cash distribution to Airbus Group SE shareholders

Change in securities
Cash (used for) investing activities

22

-945

-587

Dividends paid to non-controlling interests-3-2

Changes in capital and non-controlling interests

195

52

0

102

Change in treasury shares
Share buy-back

-264

0

-25

495

Net increase of cash and cash equivalents

171
287

256
88

Cash and cash equivalents at beginning of period

7,289

7,201

Cash and cash equivalents at end of period

7,576

7,289

Thereof presented as cash and cash equivalents

7,489

7,271

87

18

Cash (used for) provided by financing activities

22

Effect of foreign exchange rate changes on cash and cash equivalents

Thereof presented as part of disposal group of assets classified as held for sale

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

5

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

Unaudited Condensed IFRS Consolidated Statements of Changes in Equity

in M €
Balance at 1 January 2014

Equityattributable
to equity ownersof the parent

Non-controllinginterests

10,86442

Total
10,906

Profit for the period

2,343

7

2,350

Other comprehensive income-5,705-19-5,724

Total comprehensive income
Cash distribution to shareholders / dividends
to non-controlling interests
Capital increase-3,362-12-3,374

-587

-2

-589

52

0

52

Capital decrease

-12

0

-12

Equity transactions (IAS 27)

-3

7

4

Change in non-controlling interests

0

-17

-17

114

0

114

Change in treasury shares
Share-based payment (IFRS 2)

-5

0

-5

Balance at 31 December 2014

7,061

18

7,079

Profit for the period

2,696

2

2,698

Other comprehensive income-2,620-29-2,649

76

-27

49

-945

-3

-948

118

24

142

61

-5

56

-487

0

-487

Share-based payment (IFRS 2)

29

0

29

Convertible bond

53

0

53

5,966

7

5,973

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

Balance at 31 December 2015

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

6

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

Notes to the Unaudited Condensed IFRS Consolidated Financial Statements as
at 31 December 2015
1. The Company
The accompanying Unaudited Condensed IFRS Consolidated Financial Statements present the operations ofAirbus Group SE (formerly Airbus Group N.V.) and its subsidiaries (the “Group”) legally seated in Amsterdam(current registered office at Mendelweg 30, 2333 CS Leiden, The Netherlands), and are prepared and reported inEuros (“€”). On 28 May 2015, the legal form of the Group has changed from a Dutch public limited liability
company (N.V.) to a European company (SE) and is consistently subject to the laws of the Dutch Civil Code. The
Group’s core business is the manufacturing of commercial aircraft, civil and military helicopters, commercial
space launch vehicles, missiles, military aircraft, satellites, defence systems and defence electronics andrendering of services related to these activities. The Unaudited Condensed IFRS Consolidated Financial
Statements for the year ended 31 December 2015 were authorized for issue by the Airbus Group Board of
Directors on 23 February 2016.

2. Accounting policies
The Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with
International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board(“IASB”) as endorsed by the European Union (EU) as at 31 December 2015 and Part 9 of Book 2 of theNetherlands Civil Code.
Financial reporting rules applied for the first time as of 1 January 2015
The following new interpretation issued by the IASB was applied for the first time in 2015 and is effective for
Airbus Group as of 1 January 2015. The first application has not had a material impact on Airbus Group’s
Consolidated Financial Statements or on its basic and diluted earnings per share.
IFRIC 21 - This interpretation sets out the accounting treatment for an obligation to pay a levy that is not income
tax. The interpretation addresses the obligating event that gives rise to payment of such a levy and when theassociated liability should be recognised.

3. Acquisitions and disposals
There were no material acquisitions in 2015.
Airbus Safran Launchers Joint Venture (ASL)
On 14 January 2015, Airbus Group and Safran completed the first phase of the integration process of ASL
enabling the entity to become operational. Coordination and programme management of the civil activities of thelauncher business as well as relevant participations have been transferred to ASL during this first phase. The
assets and liabilities associated with the first phase were classified as held for sale as at 31 December 2014.
Airbus Group received 50% of issued shares in ASL initially recognised at 56 M € as at-equity investment. The
loss of control in the business resulted in a capital gain of 49 M €, which is reported in Airbus Defence and Spacedivision.
During the second phase, Safran and Airbus Group intend to integrate within the joint venture all the remaining
contracts, assets and industrial resources, related to space launchers and associated propulsion systems.
On 16 June 2015, ASL, the French state and CNES, the French space agency, have reached an agreement totransfer CNES's stake in Arianespace to ASL. On 12 August 2015, ASL was awarded the Ariane 6 development
contract by the European Space Agency.
7

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

The second phase will be initiated and implemented once all legal and financial terms and conditions are finalised
between both partners. The joint venture will then be fully equipped for all design, development, production andcommercial activities related to civil and military launchers and associated propulsion systems.
Elektroniksystem und Logistik GmbH (ESG)
On 20 August 2015, Airbus Defence and Space GmbH, Rohde & Schwarz GmbH und Co. KG, Thales Electronic
Systems GmbH and Northrop Grumman Litef GmbH sold their shares in ESG to E-SicherheitsbeteiligungenGmbH. Airbus Group recognised a 59 M € gain in share of profit from investments accounted for under the equity
method, which is reported in Airbus Defence and Space division. The assets and liabilities of this company wereclassified as held for sale as at 31 December 2014.
Cimpa SASOn 1 October 2015, Airbus sold its shares in its fully owned subsidiary Cimpa SAS to Sopra Steria Group. The
gain on this disposal which is recognised in other income for 72 M €, is reported in Airbus division.

Disposal groups and assets classified as held for sale
Dassault Aviation
On 25 March 2015, Airbus Group sold 1,612,407 shares, corresponding to 17.5% of the company’s share capital,of which 460,688 shares (5%) were sold to Dassault Aviation for 980 € per share and 1,151,719 shares (12.5%)
were sold to institutional investors at 1,030 € per share. On 14 April 2015, Airbus Group sold an additional
115,172 shares (1.25%) to institutional investors at 1,030 € per share.
As of 31 March 2015, the remaining equity investment in Dassault Aviation has been classified as an asset held
for sale, as Airbus Group intends to pursue market opportunities to sell the remainder of this investment. In 2015,
Airbus Group has recognised 748 M € (697 M € in share of profit from investments accounted for under the equity
method and 51 M € in other income) representing the net capital gain on partial disposal after transaction costs.
As of 31 December 2015, Airbus Group holds 23.60% of Dassault Aviation’s share capital and 24.71% of
associated voting rights.
Elbe Flugzeugwerke (EFW)
On 17 June 2015, Airbus signed an agreement with Singapore-based ST Aerospace Ltd. (STA) to offer
passenger-to-freighter (P2F) conversion solutions for its A320 and A321 aircraft. STA will acquire an additional
20% of the shares of EFW, Dresden (Germany) by way of a contribution in kind and a capital increase to EFW.
Consequently, 45% of the shares of EFW will be retained and the Group will effectively lose its control over EFW.
The transaction has been closed on 4 January 2016.
Business communications entities
On 17 December 2015, DS Holding SAS (France) and Astrium International Holdings B.V. (as beneficiaries) anda buyer signed a sale purchase agreement in respect to the companies which form the “business
communications” perimeter. The sale is subject to closing conditions.

8

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

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

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

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



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

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

9

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

Business segment information for the year ended 31 December 2015:

in M €

AirbusAirbusHelicopters

Total revenues

45,854

6,786Internal revenues
Revenues
Research anddevelopment expenses
EBIT pre-goodwill imp.
and exceptionals (1)Impairment anddisposal of goodwill
Exceptionals
Profit before financeresult and income taxes(1)AirbusDefenceand Space
13,080

Total
Others/segments HQ/ Conso.
65,720296

Consolidated
66,016

-764

-633

-163

-1,560-6-1,56645,0906,153

12,91764,160290

64,450-2,702-325-344-3,371-89-3,460

2,301

427

745

3,473

613

4,086

0

0

0

0

0

0

-14

0

-9

-23

-1

-24

2,287

427

736

3,450

612

4,062

Finance result-687

Income taxes-677

Profit for the period

2,698(1) Impacts on specific transactions (see Note 3 “Acquisitions and disposals”) are included in segments Airbus (Cimpa SAS),
Airbus Defence and Space (ESG) and “Others/ HQ/ Conso.” (Dassault Aviation).

Business segment information for the year ended 31 December 2014:

in M €

AirbusAirbusHelicopters

Total revenues

42,2806,524Internal revenues
Revenues
Research anddevelopment expenses
EBIT pre-goodwill imp.
and exceptionals (1)Impairment anddisposal of goodwill
Exceptionals
Profit before financeresult and income taxes(1)AirbusDefenceand Space
13,025

Total
Others/segments HQ/ Conso.
61,829482

Consolidated
62,311

-749

-528

-297

-1,574-24-1,59841,531

5,996

12,72860,255458

60,713

2,667

325

360

3,352

39

3,391

2,671

413

409

3,493

547

4,040

0

0

-6

-6

0

-6

-25

0

-16

-41

-2

-43

2,646

413

387

3,446

545

3,991

Finance result-778

Income taxes-863

Profit for the period

2,350(1) Impacts on specific transactions are included in segments, Airbus Defence and Space (Patria) and “Others/ HQ/ Conso.”(Dassault Aviation).

10

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

5. Revenues, gross margin and profit before finance result and income taxes
Revenues of 64,450 M € (2014: 60,713 M €) increased by +3,737 M €, mainly at Airbus (+3,574 M €), mostly
driven by a favourable foreign exchange impact and a positive volume effect.
The gross margin decreased by -86 M € to 8,851 M € compared to 8,937 M € in 2014. Included is the net charge
on the A400M programme in Airbus Defence and Space recorded in the second quarter of 2015 and a negative
foreign exchange impact in Airbus. The gross margin rate decreased from 14.7% to 13.7%.
The A350 XWB Entry into service occurred at the end of 2014, with the first A350 being delivered to Qatar
Airways on 22 December 2014. In 2015, Airbus has delivered fourteen additional aircraft. The industrial ramp-up
preparation is underway and associated risks will continue to be closely monitored in line with the schedule,
aircraft performance and overall cost envelope, as per customer’s commitment. Despite the progress made,significant challenges remain with the ramp-up acceleration.
An additional eleven A400M aircraft were delivered in 2015, resulting in twenty-one cumulative deliveries up to
31 December 2015.
Industrial efficiency and military capability remain a challenge during the ramp up phase. Management is working
with the customers to agree a schedule of military capability enhancement and deliveries as well as reviewing theescalation formulae. Industrial recovery measures have been identified and management is focused on delivery,
but risk remains. The mission capability roadmap (including the achievement of the respective milestones) andthe delivery plan remain under negotiation with OCCAR/Nations and are expected to be finalised in 2016.
Management reviewed the programme evolution and estimated contract result driven to a large extent from theimplications of the accident, as well as the impact of low inflation on the price revision formula, delays in military
functionality and deliveries, commercial negotiations, cost reduction targets and challenges in the industrial rampup, together with associated mitigation actions. As a result of this review, Airbus Defence and Space recorded an
additional net charge of 290 M € in the second quarter of 2015. The detailed review continued in the second halfof 2015 however no further net charges were deemed necessary.
The A400M SOC 1 and 1.5 milestones remain to be achieved. SOC 1 fell due end October 2013 and SOC 1.5 fell
due end December 2014. The associated termination rights became exercisable by OCCAR/Nations on
1 November 2014 and 1 January 2016 respectively. SOC 2 fell due end December 2015 and is still in the 12month 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 increased by +71 M € to 4,062 M € compared to 3,991 M €in 2014 mainly driven by share of profit from associates and other income.
Share of profit from investments under the equity method includes a net gain of 674 M € from the sale ofDassault Aviation shares (see Note 3 “Acquisitions and disposals”) that occurred in the first quarter as well as thefirst quarter 2015 estimated result and a negative catch-up on 2014 of-119 M € related to the Dassault
investment.
Other income includes the capital gain of 72 M € related to the disposal of Cimpa SAS, the net gain of 51 M €from the partial sale of Dassault Aviation held for sale shares that occurred in the second quarter and the capitalgain of 49 M € following the completion of the first phase of the creation of ASL (see Note 3 “Acquisitions anddisposals”).

11Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

6. Finance result
Finance result improved by +91 M € to -687 M € compared to -778 M € in 2014. This is mainly related to a
positive impact from revaluation of financial instruments of +121 M € (-119 M € in 2015 compared to -240 M € in2014, respectively).

7. Income taxes
The income tax expense of -677 M € (2014: -863 M €) corresponds to an effective income tax rate of 20.1%(2014: 26.9%). The decrease in the effective tax rate is due to the sale of shares of Dassault Aviation which has
been taxed at a reduced rate (see Note 3 “Acquisitions and disposals”).
Deferred tax assets increased by +1,042 M € to 6,759 M € (prior year-end: 5,717 M €) mainly as a result ofvariations in the fair values of derivative financial instruments.

8. Earnings per share

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

1 January 31 December 2015

1 January 31 December 2014

2,696 M €2,343 M €785,621,099

782,962,385

3.43 €

2.99 €

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 (see Note 19 “Financing liabilities”). In 2015, the average price of Airbus
Group shares exceeded the exercise price of the stock option plans as well as the share-settled performance
units and therefore 359,335 shares (in 2014: 1,193,364 shares) were considered in the calculation of diluted
earnings per share. The dilutive effect of the convertible bond was also considered in the calculation of diluted
earnings per share in 2015, by adding back 3 M € of interest expense to the profit for the period attributable toequity owners of the parent (2014: no adjustment) and by including 2,511,495 of dilutive potential ordinary shares.

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

12

1 January 31 December 2015

1 January 31 December 2014

2,699 M €2,343 M €788,491,929

784,155,749

3.42 €

2.99 €

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

9. Intangible assets and property, plant and equipment
Intangible assets decreased by -203 M € to 12,555 M € (prior year-end: 12,758 M €) mainly at Airbus Defence
and Space (-169 M €) mostly due to the reclassification of Business communications entities to group of assets
held for sale (see Note 3 “Acquisitions and disposals”).
Intangible assets mainly relate to goodwill of 9,907 M € (prior year-end: 9,979 M €).
The annual impairment tests were performed in the fourth quarter 2015 and led to no impairment charge.
Property, plant and equipment increased by +805 M € to 17,193 M € (prior year-end: 16,388 M €) and includes
leased assets of 118 M € (prior year-end: 213 M €). The increase was mainly driven by A350 XWB. Property,
plant and equipment also includes investment property amounting to 66 M € (prior year-end: 67 M €).

10. Investments accounted for under the equity method
Investments accounted for under the equity method of 1,326 M € (prior year-end: 3,391 M €) mainly include
the equity investments in MBDA, Atlas Group and ATR.
Following the partial sale of Dassault Aviation shares, the remaining investment in Dassault Aviation has been
reclassified as asset held for sale (see Note 3 “Acquisitions and disposals”).

11. Other investments and long-term financial assets
Composition of other investments and other long-term financial assets:in M €

31 December 201531 December 2014

Other investments

1,232

617

Other long-term financial assets

1,438

1,319

Total

2,670

1,936

Thereof non-current portion

2,492

1,769

178

167

Thereof current portion

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

12. Inventories
Inventories of 29,051 M € (prior year-end: 25,355 M €) increased by +3,696 M €. This is mainly related to Airbus(+3,297 M €) and Airbus Defence and Space (+635 M €). In Airbus, the increase is due to work in progress mainly
associated with the A350 ramp-up. In Airbus Defence and Space, this is mainly driven by the increased activity on
A400M.
Inventories are presented net of the respective portion of the contract loss provision (see Note 18 “Provisions”).

13Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

13. Other financial assets
Composition of other financial assets:in M €

31 December 201531 December 2014

Positive fair values of derivative financial instruments

931

502

Others

165

84

1,096

586

Receivables from related companies

616

582

Positive fair values of derivative financial instruments

349

208

Others

437

374

1,402

1,164

31 December 201531 December 2014

Prepaid expenses

2,714

2,090

VAT receivables

Non-current other financial assets

Total
Current other financial assets

Total

14. Other assets
Composition of other assets:in M €

1,450

1,371

Other

821

750

Total

4,985

4,211

Thereof non-current portion

2,166

1,822

Thereof current portion

2,819

2,389

15. Securities
Non-current securities with a remaining maturity of more than one year increased by +3,862 M € to 9,851 M €(prior year-end: 5,989 M €). 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 -1,395 M € to 1,788 M €(prior year-end: 3,183 M €).

16. Assets and disposal groups classified as held for sale
The assets and disposal group of assets classified as held for sale of 1,779 M € (prior year-end: 750 M €)mainly include the remaining investment in Dassault Aviation of 1,253 M €. The disposal group of liabilities
classified as held for sale total 231 M € (prior year-end: 680 M €). For further details, please see Note 3“Acquisitions and disposals”.
The assets and liabilities of the disposal groups classified as held for sale as of 31 December 2014 weremainly related to the ASL first phase.

14

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

17. Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts to
5,966 M € (prior year-end: 7,061 M €) representing a decrease of -1,095 M €.
This decrease is due to a reduction in other comprehensive income of -2,620 M € related mainly to the mark tomarket revaluation of the hedge portfolio, and a dividend payment of -945 M € (1.20 € per share) and the sharebuy-back programme whereby the Group has bought back 264 M € of shares and recognised a financing liabilityof 223 € M for its irrevocable share buy-back commitment.
This was partly offset by a net income of +2,696 M €, a convertible bond of +53 M € issued on 1 July 2015 (seeNote 19 “Financing liabilities”) and the contribution for exercised options of +118 M €.
The total number of shares issued is 785,344,784 and 784,780,585 as of 31 December 2015 and 31 December
2014, respectively. The Group’s shares are exclusively ordinary shares with a par value of 1.00 €.
During 2015, the number of treasury stock held by Airbus Group increased to 1,474,057 compared to 431,832 asof 31 December 2014. No shares were sold back to the market, and 2,885,243 shares were cancelled (in 2014:
248,469 shares).
In 2015, the Group issued 1,910,428 new shares due to the exercise of stock options and 1,539,014 shares dueto the 2015 Employee Stock Ownership Plan (in 2014: 1,871,419 new shares due to the exercise of stock
options).
Non-controlling interests decreased to 7 M € (prior year-end: 18 M €). This decrease is mainly derived from themark to market revaluation of the hedge portfolio.

18. Provisions
Provisions are comprised of the following:in M €

31 December 201531 December 2014

Provisions for pensions

7,615

8,250

Other provisions

7,465

7,862

Total

15,080

16,112

Thereof non-current portion

9,871

10,400

Thereof current portion

5,209

5,712

Among other effects, provisions for pensions decreased due to an increase in the discount rates for the various
pension schemes of the Group (France: 2.1% to 2.5%, Germany: 1.9% to 2.4% and UK: 3.6% to 3.9%).
The decrease in other provisions is mainly due to the release, utilisation and net presentation of the A350 XWB
programme losses against inventories (see Note 12 “Inventories”).
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.

15

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

19. Financing liabilities
Composition of financing liabilities:

in M €

31 December 201531 December 2014

Bonds

3,443

3,917

Liabilities to financial institutions

2,113

1,751

Loans

403

424

Liabilities from finance leases

375

186

1

0

Long-term financing liabilities

6,335

6,278

Bonds

1,523

1

OthersLiabilities to financial institutions

349

22

Loans

255

285

Liabilities from finance leases

13

12

Others

650

753

2,790

1,073

Short-term financing liabilities

The short and long-term bonds increased by +1,048 M € to 4,966 M € (prior-year end 3,918 M €), mainly due to
new commercial paper programmes totalling 505 M € and the issue of a convertible bond for 500 M € on 1 July
2015, with a 7 year-maturity. This bond bears a coupon of 0% and was issued at 102% of par. Its effective
interest rate, after separation of the equity conversion option, is 1.386%.
The increase of +689 M € to +2,462 M € (prior-year end 1,773 M €) in short and long-term liabilities to financial
institutions is mainly due to a new 296 M € (320 M $) loan agreement with EIB in December 2015 with a
10 year-maturity and a financing liability of 223 M € related to the share buy-back (see Note 17 “Total equity”).

20. Other financial liabilities
Composition of other financial liabilities:

in M €

31 December 201531 December 2014

European Governments refundable advances

6,716

6,020

Liabilities for derivative financial instruments

6,703

3,271

619

631

14,0389,922

European Governments refundable advances

570

508

Liabilities for derivative financial instruments

3,884

2,232

Non current other financial liabilities

Others
Total
Current other financial liabilities

Others
Total

567

740

5,021

3,480

The liabilities for derivative financial instruments have increased significantly as a result of the deterioration of the
USD/€ exchange rate associated with the mark to market valuation of the hedge portfolio.

16

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

21. Other liabilities
Composition of other liabilities:

in M €

31 December 201531 December 2014

38,08434,405885

675

Other liabilities
Customer advance payments
Tax liabilities (excluding income tax)

3,061

2,991

Deferred income

Others

1,312

1,356

Total

43,342

39,427

Thereof non-current portion

15,256

13,116

Thereof current portion

28,08626,311

22. Cash flows
Cash provided by operating activities improved by +1,040 M € to +3,600 M € (2014: +2,560 M €). Gross cash
flow from operations (before changes in other operating assets and liabilities) of +4,323 M € decreased comparedto the prior period (2014: +4,946 M €). Changes in other operating assets and liabilities amount to -723 M €(2014: -2,386 M €) mainly due to an increase in inventories, partly compensated by higher trade liabilities andadvance payments received.
Cash used for investing activities amounts to -3,459 M € (2014: -3,223 M €). This mainly comprises purchasesof intangible assets and property, plant and equipment of -2,924 M € (2014: -2,548 M €), and payments forinvestment in securities of -2,361 M € (2014: -2,016 M €). This was partly compensated by the proceeds from
disposals of associates and other investments and long-term financial assets amounting to +1,731 M € (2014:+1,083 M €) mainly due to the partial sale of Dassault Aviation shares (see Note 3 “Acquisitions and disposals”).
Cash (used for) provided by financing activities decreased by -520 M € to -25 M € (2014: +495 M €). Thisdecrease comprises a dividend payment of 1.20 € per share amounting to -945 M € (2014: -587 M €) and a sharebuy-back of -264 M € (2014: 0 M €), in part offset by cash receipts from long-term and short-term financing
activities of +992 M € (2014: +930 M €) (see Note 19 “Financing liabilities”).

23. 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.
A portion of the shares held in Dassault Aviation were disposed of during the first half-year 2015 (see Note 3“Acquisitions and disposals”).

17Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 201524. Litigation and claims
Airbus Group is involved from time to time in various legal and arbitration proceedings in the ordinary course of its
business, the most significant of which are described below. Other than as described below, Airbus Group is notaware of any material governmental, legal or arbitration proceedings (including any such proceedings which are
pending or threatened), during a period covering at least the previous twelve months which may have, or have
had in the recent past significant effects on Airbus Group SE’s or the Group’s financial position or profitability.
If the Group concludes that the disclosures relative to contingent liabilities can be expected to prejudice seriously
its position in a dispute with other parties, the Group limits its disclosures to the nature of the dispute.
WTO
Although Airbus Group is not a party, Airbus Group is supporting the European Commission in litigation before the
WTO. Following its unilateral withdrawal from the 1992 EU-US Agreement on Trade in Large Civil Aircraft, the US
lodged a request on 6 October 2004 to initiate proceedings before the WTO. On the same day, the EU launched aparallel WTO case against the US in relation to its subsidies to Boeing. On 19 December 2014, the European
Union requested WTO consultations on the extension until the end of 2040 of subsidies originally granted by theState of Washington to Boeing and other US aerospace firms until 2024.
On 1 June 2011, the WTO adopted the Appellate Body’s final report in the case brought by the US assessing
funding to Airbus from European governments. On 1 December 2011, the EU informed the WTO that it had taken
appropriate steps to bring its measures fully into conformity with its WTO obligations, and to comply with the
WTO’s recommendations and rulings. Because the US did not agree, the matter is now under WTO panel review
pursuant to WTO rules.
On 23 March 2012, the WTO adopted the Appellate Body’s final report in the case brought by the EU assessing
funding to Boeing from the US. On 23 September 2012, the US informed the WTO that it had taken appropriate
steps to bring its measures fully into conformity with its WTO obligations, and to comply with the WTO’s
recommendations and rulings. Because the EU did not agree, the matter is now under WTO panel review
pursuant to WTO rules.
Exact timing of further steps in the WTO litigation process is subject to further rulings and to negotiations between
the US and the EU. Unless a settlement, which is currently not under discussion, is reached between the parties,
the litigation is expected to continue for several years.
GPT
Promptedbyawhistleblower’s

allegations,AirbusGroup

conducted

internal

auditsandretained

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

18

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

Eurofighter Austria
In March 2012, the German public prosecutor, following a request for assistance by the Austrian publicprosecutor, launched a criminal investigation into alleged bribery, tax evasion and breach of trust by current andformer employees of EADS Deutschland GmbH (renamed on 1 July 2014 Airbus Defence and Space GmbH) andEurofighter Jagdflugzeug GmbH as well as by third parties relating to the sale of Eurofighter aircraft to Austria in
2003. After having been informed of the investigation in 2012, Airbus Group retained the law firm Clifford Chance
to conduct a fact finding independent review. Upon concluding its review, Clifford Chance presented its fact
finding report to Airbus Group in December 2013. Airbus Group provided the report to the public prosecutors inGermany. Airbus Group is cooperating fully with the authorities.
Other investigations
Following the announcement of investigations by the Romanian authorities relating to the border surveillance
project in Romania in mid-October 2014, Airbus Group confirms that Airbus Defence and Space GmbH has been
informed that the German prosecution office is also investigating potential irregularities in relation to this project, aproject in Saudi Arabia and a project of Tesat-Spacecom GmbH & Co. KG. The public prosecutor in Germany haslaunched administrative proceedings in the context of those investigations against Airbus Defence and SpaceGmbH and Tesat-Spacecom GmbH & Co. KG. Airbus Group is cooperating fully with the authorities.
Public prosecutors in Greece and Germany launched investigations into a current employee and former managing
directors and employees of Atlas Elektronik GmbH, a joint company of ThyssenKrupp and Airbus Group, on
suspicion of bribing foreign officials and tax evasion. The public prosecutor in Germany has launched anadministrative proceeding for alleged organisational and supervisory shortfalls. The authorities in Greece havelaunched civil claims against Atlas Elektronik GmbH. In 2015 the public prosecutor´s office in Bremen launchedanother investigation into current and former employees and managing directors of Atlas Elektronik GmbH on
suspicion of bribery and tax evasion in connection with projects in Turkey. With the support of its shareholders,the company is cooperating fully with the authorities and in consultation with the public prosecutor is assisting thefurther clarification of the matter through its own internal investigation.
Commercial disputes
In May 2013, the Group has been notified of a commercial dispute following the decision taken by the Group tocease a partnership for sales support activities in some local markets abroad. The Group believes it has solid
grounds to legally object to the alleged breach of a commercial agreement. However, the consequences of thisdispute and the outcome of the proceedings cannot be fully assessed at this stage. The arbitration is not expected
to be completed before the end of 2016.
In the course of another commercial dispute, the Group received a statement of claim alleging liability forrefunding part of the purchase price of a large contract which the customer claims it was not obliged to pay. The
Group believes that this claim, which goes back many years, should be dismissed in principle. The dispute iscurrently the subject of arbitration.
In light of regulatory investigations and commercial disputes, including those discussed above, the Group hasdetermined to enhance certain of its policies, procedures and practices, including ethics and compliance. The
Group is accordingly in the process of revising and implementing improved procedures, including those withrespect to its engagement of consultants and other third parties, in particular in respect of sales support activities,
and is conducting enhanced due diligence as a pre-condition for future or continued engagement andcorresponding payment. The Group believes that these enhancements to its controls and practices best position it
for the future, particularly in light of advancements in regulatory standards. The Group cannot exclude that thesechanges lead to additional commercial disputes or other consequences in the future.

19

Airbus Group SE
Unaudited Condensed IFRS Consolidated Financial Information
for the year ended 31 December 2015

25. Number of employees
The number of employees as at 31 December 2015 is 136,574 as compared to 138,622 as at 31 December 2014.

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

20