First half-year 2016 Financial Report2016 Semi-annual report of the Board of Directors ................................................................................................. 2
Unaudited Condensed Interim IFRS Consolidated Financial Information of Airbus Group SE for the six-month
period ended 30 June 2016 ..................................................................................................................................... 4
Appendix: Review report of the independent auditor

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 20162016 Semi-annual report of the Board of Directors
1. Semi-annual report on activities
Main events in the first half-year of 2016
For an overview of the main events that occurred during the first half of 2016 and their impact on the Unaudited
Condensed Interim IFRS Consolidated Financial Information of Airbus Group for the six-month period ended
30 June 2016 (the “Semi-Annual Financial Statements”), please refer to the press release, which was approvedby the Board of Directors on 26 July 2016 and will be issued on 27 July 2016, available on Airbus Group’s website
www.airbusgroup.com.
For further information and detail regarding Airbus Group’s activities, finances, financing, risk factors andcorporate governance, please refer to Airbus Group’s website www.airbusgroup.com and the documents posted
thereon.
Related party transactions
Please refer to the notes to the Semi-Annual Financial Statements attached hereto (see Note 4 “Related party
transactions”).

2. Risk factors
ERM has become a key management process across the Group, serving to mitigate key risks and increase
opportunity, with a particular focus on major aircraft programmes.
By mapping all material risks, planning how to mitigate them and how to seize related opportunities, ERM isdesigned to achieve the following:
1. Strategy: keep high-level strategic objectives consistent with risk appetite
2. Operations: safeguard effectiveness and efficiency of operations and resource allocation, in line withperformance and financial targets
3. Reporting: ensure reliability of reporting, in particular financial reporting
4. Compliance: comply with applicable laws and regulations.

For a description of the Enterprise Risk Management system, the main risks and uncertainties please refer to the:a.

Airbus Group SE Report of the Board of Directors 2015 (sections 4.6 and 4.7)
(http://www.airbusgroup.com/dam/assets/airbusgroup/int/en/investor-relations/documents/2016/General­
Meeting/Report-of-the-Board-of-Directors-2015-Airbus-Group-SE­/Report%20of%20the%20Board%20of%20Directors%202015%20Airbus%20Group%20SE%20.pdf),
andb.

Airbus Group SE Registration Document (section “Risk Factors”)(http://www.airbusgroup.com/dam/assets/airbusgroup/int/en/investor-relations/documents/2016/Annual­
Reports/Registration-document-airbus-group­
2015/Registration%20Document%202015%20Airbus%20Group.pdf).

2

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

3. Semi-Annual Financial Statements
The Semi-Annual Financial Statements, including the review report by Ernst & Young Accountants LLP, areattached hereto.

4. Statement of the Board of Directors
The Board of Directors of Airbus Group hereby declares that, to the best of its knowledge:
the Semi-Annual Financial Statements for the period ended 30 June 2016 give a true and fair view of the assets,
liabilities, financial position and profits or losses of Airbus Group and undertakings included in the consolidation
taken as a whole; andthis Semi-Annual Board Report (including the press release, which was approved by the Board of Directors on
26 July 2016 and will be issued on 27 July 2016) gives a true and fair view of the position as per the balance
sheet date, and of the development and performance during the first half of the 2016 financial year and expectedcourse of events of Airbus Group and undertakings included in the consolidation taken as a whole. This SemiAnnual Board Report has paid special attention to investments and circumstances upon which the development ofrevenues and profitability is dependent, as these have been described herein.

26 July 2016,
The Board of Directors
Denis Ranque, Chairman
Tom Enders, Chief Executive Officer
Claudia Nemat, Director
Ralph D. Crosby, Director
Hans-Peter Keitel, Director
Hermann-Josef Lamberti, Director
Catherine Guillouard, Director
Lakshmi N. Mittal, Director
Sir John Parker, Director
Carlos Tavares, Director
María Amparo Moraleda Martínez, Director
Jean-Claude Trichet, Director

3

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

Unaudited Condensed Interim IFRS Consolidated
Financial Information of Airbus Group SE
for the six-month period ended 30 June 2016
Unaudited Condensed Interim IFRS Consolidated Income Statements .................................................................. 5
Unaudited Condensed Interim IFRS Consolidated Income Statements for the second quarter of 2016 and 2015 . 6
Unaudited Condensed Interim IFRS Consolidated Statements of Comprehensive Income .................................... 7
Unaudited Condensed Interim IFRS Consolidated Statements of Comprehensive Income for the second quarterof 2016 and 2015..................................................................................................................................................... 8
Unaudited Condensed Interim IFRS Consolidated Statements of Financial Position .............................................. 9
Unaudited Condensed Interim IFRS Consolidated Statements of Cash Flows ..................................................... 10
Unaudited Condensed Interim IFRS Consolidated Statements of Changes in Equity ........................................... 11
Notes to the Unaudited Condensed Interim IFRS Consolidated Financial Statements as at 30 June 2016 .......... 121.

The Company.......................................................................................................................................... 122.

Accounting policies.................................................................................................................................. 12

3.

Acquisitions and disposals ...................................................................................................................... 13

4.

Related party transactions ....................................................................................................................... 14

5.

Segment information ............................................................................................................................... 15

6.

Revenues, gross margin and profit before finance result and income taxes ........................................... 17

7.

Finance result .......................................................................................................................................... 18

8.

Income tax............................................................................................................................................... 18

9.

Earnings per share .................................................................................................................................. 18

10.

Intangible assets and property, plant and equipment .............................................................................. 19

11.

Investments accounted for under the equity method ............................................................................... 19

12.

Other investments and other long-term financial assets.......................................................................... 19

13.

Inventories............................................................................................................................................... 19

14.

Other financial assets and other financial liabilities ................................................................................. 20

15.

Other assets and other liabilities.............................................................................................................. 20

16.

Total equity.............................................................................................................................................. 21

17.

Provisions................................................................................................................................................ 22

18.

Cash flows, securities and financing liabilities ......................................................................................... 22

19.

Financial instruments............................................................................................................................... 24

20.

Litigation and claims ................................................................................................................................ 26

21.

Number of employees ............................................................................................................................. 28

22.

Subsequent events.................................................................................................................................. 28

4

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

Unaudited Condensed Interim IFRS Consolidated Income Statements

Note
Revenues

1 January 30 June 2016
In € million
In %6

1 January 30 June 2015
In € million
In %Deviation
In € million

28,755100

28,893100-138-26,643-93-24,859-86-1,784

2,112

7

4,034

14

-1,922

Selling, administrative and other expenses-1,292-4-1,392-5

100

Research and development
expenses-1,309-5-1,506-5

197

Other income

2,354

8

272

1

2,082

-14

0

802

3

-816

1,851

6

2,210

8

-359

Interest income

137

0

85

0

52

Interest expense

-234

-1

-274

-1

40

Cost of sales
Gross margin

6

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

6

Other financial result

-51

0

-155

-1

104

Finance result

7

-148

-1

-344

-2

196

Income taxes

8

58

0

-335

-1

393

1,761

5

1,531

5

230

1,761

6

1,524

5

237

0

0

7

0

-7

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

€

€

€

Basic

2.27

1.94

0.33

Diluted

2.26

1.94

0.32

Earnings per share

9

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 six-month period ended 30 June 2016

Unaudited Condensed Interim IFRS Consolidated Income Statements
for the second quarter of 2016 and 2015
1 April 30 June 2016
In € million
In %1 April 30 June 2015
In € million
In %Deviation
In € million

Revenues

16,572100

16,815

100-243

Cost of sales-15,903-96-14,489-86-1,414Gross margin

669

4

2,326

14

-1,657

Selling, administrative and other expenses

-641

-4

-761

-5

120

Research and development
expenses

-762

-5

-805

-5

43

Other income

2,269

14

145

1

2,124

-46

0

73

0

-119

1,489

9

978

5

511

Share of (loss) profit from investments
under the equity method and other(expenses) income from investments
Profit before finance result
and income taxes
Interest income

62

0

45

0

17

Interest expense

-91

-1

-128

-1

37

Other financial result

-312

-2

105

1

-417

Finance result

-341

-3

22

0

-363

Income taxes

215

1

-264

-1

479

1,363

7

736

4

627

1,362

8

732

4

630

1

0

4

0

-3

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

€

€

€

Basic

1.76

0.93

0.83

Diluted

1.75

0.93

0.82

Earnings per share

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 six-month period ended 30 June 2016

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

1 January 30 June 2016

1 January 30 June 2015

1,761

1,531

-1,711

563

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

-6

-77

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

496

-178

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

-284

147

Net change in fair value of cash flow hedges

2,040-4,022

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

-141

336

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

-27

-129

Tax on items that will be reclassified to profit or loss

-626

1,237

Other comprehensive income, net of tax-259-2,123

Total comprehensive income of the period

1,502

-592

Equity owners of the parent

1,487

-577

Non-controlling interests

15

-15

Attributable to:

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 six-month period ended 30 June 2016

Unaudited Condensed Interim IFRS Consolidated Statements of Comprehensive
Income for the second quarter of 2016 and 2015
(In € million)
Profit for the period

1 April 30 June 2016

1 April 30 June 2015

1,363

736

-1,001

1,059

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-3-1

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

277

-341

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

-37

-188

-1,503

3,839

-239

20

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

-7

-18

Tax on items that will be reclassified to profit or loss

449

-1,196

Other comprehensive income, net of tax-2,064

3,174

Total comprehensive income of the period

-701

3,910

Equity owners of the parent

-720

3,906

Non-controlling interests

19

4

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

Attributable to:

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 six-month period ended 30 June 2016

Unaudited Condensed Interim IFRS Consolidated Statements of Financial Position
Note
AssetsNon-current assets
Intangible assets
Property, plant and equipment
Investments accounted for under the equity method
Other investments and other long-term
financial assets
Non-current other financial assets
Non-current other assets
Deferred tax assets
Non-current securities
Current assets
Inventories
Trade receivables
Current portion of other long-term financial assets
Current other financial assets
Current other assets
Current tax assets
Current securities
Cash and cash equivalents (1)Assets and disposal group of assets
classified as held for sale
Total assets (1)30 June 2016
In € million In %11,84916,664
1,773

10
15
2

12,555
17,193
1,326

12
16
1

-706
-529
447

-6
-3
34

12
14
15

3,411
1,092
2,249
7,320
9,703
54,061

3
1
2
7
9
49

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

2
1
2
7
9
50

919
-4
83
561
-148
623

37
0
4
8
-2
1

31,827
7,317
630
1,149
2,858
778
1,750
7,965
54,274

29
7
0
1
3
1
2
7
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

2,776
-560
452
-253
39
-82
-38
1,375
3,709

10
-7
254
-18
1
-10
-2
21
7

1,147
109,482

1
100

1,779
105,782

2
100

-632
3,700

-36
3

773
8,653
-3,369
-5
6,052
1
6,053

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
-1,147
947
298
86
-6
80

-2
-12
-22
-98
1
-86
1

17
18
14
15

11,065
8,933
11,912
15,133
1,507
48,550

10
8
11
14
1
44

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

10
6
13
14
1
44

1,194
2,598
-2,126
-123
307
1,850

12
41
-15
-1
26
4

17
18

4,994
3,411
11,782
1,060
4,706
27,972
53,925

4
3
11
1
4
26
49

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

5
2
10
1
5
27
50

-215
621
918
152
-315
-114
1,047

-4
22
8
17
-6
0
2

954
103,429
109,482

1
94
100

231
99,809105,782

0
94
100

723
3,620
3,700

313
4
3

18

13
12
14
15
18
18

3

Non-controlling interests
16

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)Deviation
In € million In %

10
10
11

Total equity (2)Equity attributable to equity owners of the parent
Capital stockReserves
Accumulated other comprehensive income
Treasury shares

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

31 December 2015
In € million In %

14
15

3

(1) 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 June 2016, the accumulated other comprehensive income, previously classified within equity relating to assets anddisposal groups classified as held for sale, amounts to €-52 million.
The accompanying notes are an integral part of these Unaudited Condensed Interim IFRS Consolidated Financial Statements.
9

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

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

1 January 30 June 2015

1,761

1,524

0

7

Depreciation and amortization

1,073

1,085

Valuation adjustments

111

524

Deferred tax (income) expense

-494

169

(In € million)

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 (used for) operating activities

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

143

-41

-1,828-122

Results of companies accounted for under the equity method

21

-743

Change in current and non-current provisions

493

-361

-174
-2,497-87-2,641-1,391-686-1,259-1,000Results 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

1912- Acquisitions of subsidiaries and joint ventures (net of cash)

-117

-6

- Proceeds from disposals of subsidiaries (net of cash)

732

-3

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

-261

-155

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

37

1,630

- Dividends paid by companies valued at equity
Disposal of assets, liabilities and disposal group classified as held for sale
Change in securities

17

24

1,527

116

306

-2,052

1,001-1,434

Financing activities
Change in long-term and short-term financing liabilities

3,426

574

Cash distribution to Airbus Group SE shareholders-1,008

-945

-1

0

Cash provided by (used for) investing activities

18

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

53

96

-736

0

1,734

-275

Net increase (decrease) of cash and cash equivalents

-35
1,309

179
-2,216

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

6,677

7,099

7,986

4,883

7,965

4,842

21

41

Share buyback
Cash provided by (used for) 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 June
2015: €-730 million, and at 31 December 2014: €190 million; change in other operating assets and liabilities: €-540 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.
10

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 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

1,524

7

1,531

Other comprehensive income-2,101-22-2,123

-577

-15

-592

-945

0

-945

96

0

96

Equity transactions (IAS 27)

51

0

51

Share-based payment (IFRS 2)

26

0

26

Balance at 30 June 2015

5,712

3

5,715

Balance at 1 January 2016

5,966

7

5,973

Profit for the period

1,761

0

1,761

Other comprehensive income

-274

15

-259

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

1,487

15

1,502

-1,008-1-1,009

53

0

53

39

-20

19

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

Equity transactions
Change in treasury shares

-513

0

-513

Share-based payment (IFRS 2)

28

0

28

Others

0

0

0

6,052

1

6,053

Balance at 30 June 2016

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

11

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

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

12

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 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”).

13

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 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 will finalise 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 second half-year 2016.
Assets and disposal groups classified as held for sale
As of 30 June 2016, Airbus Group accounted for assets and disposal group of assets classified as held forsale in the amount of €1,147 million (prior year-end: €1,779 million). Disposal group of liabilities classified asheld for sale as of 30 June 2016 amount to €954 million (prior year-end: €231 million). The assets and disposalgroups 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”).

14

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 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 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.”.

15

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

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

AirbusAirbusHelicopters

Total revenues

21,061

2,687

Internal revenues

AirbusDefenceand Space
5,440

Total
Others/segments HQ/ Conso.
29,188155

Consolidated
29,343

-202

-327

-57

-586

-2

-588

20,859

2,360

5,383

28,602

153

28,755

Research anddevelopment expenses

-957

-151

-152

-1,260-49-1,309EBIT pre-goodwill imp.
and exceptionals

421

144

478

1,043

813

1,856

Impairment anddisposal of goodwill

0

0

0

0

0

0

Exceptionals

-1

0

-3

-4

-1

-5

420

144

475

1,039

812

1,851

Revenues

Profit before financeresult and income taxes
Finance result-148

Income taxes

58

Profit for the period

1,761

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

AirbusAirbusHelicopters

Total
Others/segments HQ/ Conso.

Total revenues

21,081

2,950

5,531

29,562

123

29,685Internal revenues

-385

-295

-111

-791

-1

-792

Consolidated

Revenues

20,696

2,655

5,420

28,771122

28,893

Research anddevelopment expenses-1,148-153-159-1,460-46-1,506

EBIT pre-goodwill imp.
and exceptionals

1,424

162

-26

1,560

669

2,229

Impairment anddisposal of goodwill
Exceptionals
Profit before financeresult and income taxes

0

0

0

0

0

0

-12

0

-6

-18

-1

-19

1,412

162

-32

1,542

668

2,210

Finance result-344

Income taxes-335

Profit for the period

1,531

16

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

6. Revenues, gross margin and profit before finance result and income taxes
Revenues of €28,755 million (first half-year 2015: €28,893 million) decreased by €-138 million, mainly at Airbus
Helicopters due to a mix impact despite higher volume.
The gross margin decreased by €-1,922 million to €2,112 million compared to €4,034 million in the first half-year2015, mainly at Airbus and Airbus Defence and Space. At Airbus, it reflects mainly lower deliveries, a negative
foreign exchange impact and an update of the A350 XWB loss making contracts provision (€385 million net
charge). At Airbus Defence and Space, an additional net charge of €1,026 million has been recorded in thesecond quarter 2016 for the A400M programme.
The gross margin rate decreased from 14.0% to 7.3%.
In the first six months 2016, Airbus has delivered 12 A350 XWB aircraft with 3 new Head of Versions.
To reflect expected lower revenues escalation, increased learning curve costs and delivery phasing, Airbus hasrecorded 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.
5 A400M aircraft were delivered during the first half-year 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 €-359 million to €1,851 million compared to€2,210 million in the first half-year 2015, mainly driven by the decrease in gross margin and in share of profit frominvestments under the equity method and other income from investments, partly compensated by an increase inother income.
Share of (loss) profit from investments under the equity method and other income from investments
decreased by €-816 million to €-14 million compared to €802 million in the first half-year 2015, which included a
net gain of €674 million from the partial sale of Dassault Aviation shares.
17

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

Other income increased by €+2,082 million to €2,354 million compared to €272 million in the first half-year 2015.
This increase is due to the capital gain of €1,139 million following the creation of ASL, the capital gain from thesale of Dassault Aviation shares of €528 million and the revaluation at fair value of the remaining investment in
Dassault Aviation for €340 million (see Note 3 “Acquisitions and disposals”).

7. Finance result
Finance result improved by €+196 million to €-148 million compared to €-344 million in the first half-year 2015.
This is related to a positive impact from revaluation of financial instruments of €+104 million and to a positive
impact from interest result of €+92 million.

8. Income tax
The income tax benefit of €58 million (first half-year 2015: €-335 million) corresponds to an effective tax rate of-3% (first half-year 2015: 18%). This is due to the sale of shares of Dassault Aviation and the creation of ASL,
both of which have been taxed at a reduced rate (see Note 3 “Acquisitions and disposals”), and in addition therecognition of a deferred tax asset related to the update of the loss making provisions.

9. Earnings per share

Basic earnings per share

1 January 30 June 2016

1 January 30 June 2015

Profit for the period attributable to equity owners of the parent(Net income)€1,761 million€1,524 million

Weighted average number of ordinary shares outstanding

775,116,098

785,672,234

€2.27

€1.94

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 half-year 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 293,675 shares (in the first six months 2015: 750,301 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 half-year 2016, by adding back €3 million of interest expense to the profit forthe period attributable to equity owners of the parent (in the first six months 2015: no adjustment) and by including
5,022,990 of dilutive potential ordinary shares.

Diluted earnings per share

1 January 30 June 2016

1 January 30 June 2015

Profit for the period attributable to equity owners of the parent(Net income)€1764 million€1,524 million

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

780,432,763

786,422,535

€2.26

€1.94

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

18

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

10. Intangible assets and property, plant and equipment
Intangible assets decreased by €-706 million to €11,849 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 €9,310 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 €-529 million to €16,664 million (prior year-end: €17,193 million)
mainly at Airbus Defence and Space (€-546 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 €111 million (prior year-end: €118 million) and investment property
amounting to €66 million (prior year-end: €66 million).

11. Investments accounted for under the equity method
Investments accounted for under the equity method increased by €+447 million to €1,773 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 June 201631 December 2015

Other investments

1,803

1,232

Other long-term financial assets

1,608

1,260

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

3,411

2,492

Current portion of other long-term financial assets
Total

630

178

4,041

2,670

Other investments and other long-term financial assets increased by €+1,371 million to €4,041 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 €31,827 million (prior year-end: €29,051 million) increased by €+2,776 million. This is mainly
related to Airbus (€+3,788 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 (€-1,476
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”).

19Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2016

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

1,004

931

88

165

Total non-current other financial assets

1,092

1,096

Receivables from related companies

467

616

Positive fair values of derivative financial instruments

272

349

Others410

437

Total current other financial assets

1,149

1,402

Total

2,241

2,498

30 June 201631 December 2015

European Governments refundable advances

6,466

6,716

Liabilities for derivative financial instruments

4,884

6,703

562

619

11,912

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

OthersTotal non-current other financial liabilities
European Governments refundable advances

608

570

Liabilities for derivative financial instruments

3,406

3,884

692

567

Total current other financial liabilities

4,706

5,021

Total

16,61819,059OthersThe 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 June 201631 December 2015

2,144

2,051

105

115

Total non-current other assets

2,249

2,166

VAT receivables

1,518

1,450

Prepaid expenses

795

663

Other

545

706

Total current other assets

2,858

2,819

Total

5,107

4,985

Prepaid expenses
Others20

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

Composition of other liabilities:(In € million)

30 June 201631 December 2015

14,382

14,472

501

521

250

263

15,133

15,256

Customer advance payments

23,49023,612

Tax liabilities (excluding income tax)

1,019

885

Others

2,459

2,540

Deferred income

1,004

1,049

Total current other liabilities

27,972

28,086

Total

43,10543,342Other 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€6,052 million (prior year-end: €5,966 million) representing an increase of €+86 million. This is due to a net
income for the period of €+1,761 million, partly offset by a dividend payment of €-1,008 million (€1.30 per share),the share buyback programme of €-513 million, which is now completed for a total of €1 billion, and a reduction inother comprehensive income of €-274 million. This reduction is principally related to the mark to market
revaluation of the hedge portfolio, partly offset by the revaluation of the defined benefit plans (see Note 17“Provisions”).
The total number of shares issued is 772,678,546 and 785,344,784 as of 30 June 2016 and 31 December 2015,
respectively. The Group’s shares are exclusively ordinary shares with a par value of €1.00.
During the first half-year 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 six months 2015: 0 shares).
In the first six months 2016, the Group issued 98,000 new shares due to the exercise of stock options (in the firstsix months 2015: 2,798,721 shares).
Non-controlling interests decreased to €1 million (prior year-end: €7 million). This decrease results mainly fromthe impact of the change in consolidation method of EFW (see Note 3 “Acquisitions and disposals”), partly
compensated by the mark to market revaluations of the hedge portfolio.

21

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

30 June 201631 December 2015

Provisions for pensions

8,781

7,615

Other provisions

7,278

7,465

Total

16,05915,080

Thereof non-current portion

11,065

9,871

Thereof current portion

4,994

5,209

Provisions for pensions increased due to a decrease of the discount rates for the various pension schemes of
the Group (France: from 2.5% to 1.5% and Germany: from 2.4% to 1.4%).
The decrease in other provisions is due in part to the release, utilisation and net presentation of programme
losses against inventories (see Note 12 “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 has been settled during
the first 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. At this stage there is no final retrofit solution
available and no reliable estimate of future retrofit costs exists. As a result, no provision has been recorded in theGroup accounts as of 30 June 2016.

18. Cash flows, securities and financing liabilities
Cash flows
Cash (used for) operating activities amounts to €-1,391 million (first half-year 2015 adjusted: €-686 million).
Gross cash flow from operations (before changes in other operating assets and liabilities) amounts to €+1,106
million (first half-year 2015: €+1,955 million). Changes in other operating assets and liabilities amount to €-2,497
million (first half-year 2015 adjusted: €-2,641 million) mainly due to an increase in inventories, trade receivables
and customer financing, partly compensated by higher advance payments received.
Cash provided by (used for) investing activities amounts to €+1,001 million (first half-year 2015: €-1,434
million). This includes the impact of disposals which occurred during the first half-year 2016 (see Note 3“Acquisitions and disposals”) for a total of €+2,296 million (first half-year 2015: €+1,743 million). This was partly
compensated by purchases of intangible assets and property, plant and equipment of €-1,259 million (firsthalf-year 2015: €-1,000 million).

22

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

Cash provided by (used for) financing activities amounts to €+1,734 million (first half-year 2015: €-275
million). This mainly comprises changes in long-term and short-term financing liabilities of €+3,426 million (firsthalf-year 2015: €+574 million) mainly due to the issuance of bonds (see Note 18 “Cash flows, securities andfinancing liabilities – Financing liabilities”), in part offset by a dividend payment of €1.30 per share which amounts
to €-1,008 million (first half-year 2015: €-945 million) and the share buyback programme of €-736 million (first halfyear 2015: €0 million).
Securities
Non-current securities with a remaining maturity of more than one year decreased by €-148 million to €9,703
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 €-38 million to €1,750 million(prior year-end: €1,788 million).
Financing liabilities
Composition of financing liabilities:(In € million)

30 June 201631 December 2015

Bonds

6,070

3,443

Liabilities to financial institutions

2,100

2,113

Loans

389

403

Liabilities from finance leases

373

375

1

1

Long-term financing liabilities

8,933

6,335

Bonds

2,148

1,523

Liabilities to financial institutions

125

349

Loans

208

255

Liabilities from finance leases

14

13

Others

916

650

3,411

2,790

OthersShort-term financing liabilities

The increase in financing liabilities is mainly related to the issuance of bonds (€+2.5 billion) and to commercial
paper programmes (€+681 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”).

23Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 2016

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

30 June 201631 December 2015

1,004

931

Non-current positive fair values
Current positive fair values

272

349

1,276

1,280

Non-current liabilities-4,884-6,703Current liabilities-3,406-3,884

Total liabilities for derivative financial instruments-8,290-10,587

Total net fair value of derivative financial instruments-7,014-9,307

Total positive fair values of derivative financial instruments

The volume of hedged US dollar-contracts was US$100.4 billion(1)

as at 30 June 2016 (prior-year end US$101.9

billion). The US dollar spot rate was 1.11 US$/€ and 1.09 US$/€ at 30 June 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$/€ as
at 30 June 2016 compared to 1.28 US$/€ 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 six 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 June 2016
(In € million)

31 December 2015

Book value

Fair value

Book value

Fair value

Issued bonds and commercial papers-8,218-8,549-4,966-5,091

Liabilities to financial institutions
and other financing liabilities-3,739-3,741-3,771-3,822Financing 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.

24

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 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 June 2016
(In € million)

31 December 2015

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

1,442

0

0

1,442

828

0

0

828

0

1,256

20

1,276

0

1,234

46

1,280

11,4512

0

11,453

11,474165

0

11,639

3,449

1,465

0

4,914

3,042

2,130

0

5,172

16,3422,723

20

19,085

15,344

3,529

46

18,919Derivative instruments

0-8,2900-8,2900-10,5870-10,587

Other liabilities

0

0

-35

-35

0

0

-74

-74

-8,290-35-8,3250-10,587-74-10,661

Financial assets measured
at fair value
Equity instruments
Derivative instruments
Securities
Cash equivalents(2)

Total (2)Financial liabilities measured
at fair value

Total

0

(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 June 2015
Balance at 1 January 2016
Profit or loss
Settlements
Balance at 30 June 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
-8
-18
20

46
-8
-18
20

-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 June 2016, compared to the outcome disclosed in the year-end financial statements.

25

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 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 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 in continuing engagement with the authorities.

26

Airbus Group SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the six-month period ended 30 June 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. 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 (“Atlas”), a joint company of ThyssenKrupp and Airbus Group,on suspicion of bribing foreign officials and tax evasion in connection with projects in Greece. The publicprosecutor in Germany has launched an administrative proceeding for alleged organisational and supervisory
shortfalls against Atlas. The authorities in Greece have launched civil claims against Atlas. In 2015 the publicprosecutor in Germany launched another investigation into current and former employees and managing directorsof Atlas on suspicion of bribery and tax evasion in connection with projects in Turkey and extended theinvestigation in 2016 to five current and former employees of Atlas’ shareholders. A further investigation was
launched against two former employees of Atlas on suspicion of bribery in connection with projects in Pakistan.
With the support of its shareholders, Atlas is cooperating fully with the authorities and is supporting the further
clarification of the matters through its own internal investigation.
ECAs
In the context of its internal compliance improvement programme, the Group discovered misstatements andomissions relating to information provided in respect of third party consultants in certain applications for export
credit financing for Airbus customers. The Group has informed the Export Credit Agencies (“ECAs”) and the UK
Serious Fraud Office (“SFO”) of irregularities it has discovered. Some ECA financing has been temporarilysuspended. The Group is working with the relevant ECAs to resolve this issue. A process for the re-establishmentof ECA financing has been agreed and is ongoing. The Group is also cooperating with the SFO.

27

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

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 andcorresponding payment. The Group has therefore engaged legal, investigative, and forensic accounting expertiseof the highest calibre to undertake a comprehensive review of all relevant third party business consultant
relationships and related subject matters. The Group believes that these enhancements to its controls andpractices best position it for the future, particularly in light of advancements in regulatory standards. The Group
cannot exclude that the comprehensive review and these enhancements of its controls and practices lead to
additional commercial disputes or other consequences in 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 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
dispute is currently the subject of arbitration.

21. Number of employees
The number of employees as at 30 June 2016 is 136,890 as compared to 136,574 as at 31 December 2015.

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

28

Ernst & Young Accountants LLP
Cross Towers, Antonio Vivaldistraat 150
1083 HP Amsterdam, Netherlands
P.O. Box 7883
1008 AB Amsterdam, Netherlands

Tel: +31 88 407 10 00
Fax: +31 88 407 10 05
ey.com

To: the Board of Directors of Airbus Group SE

Review report
Introduction
We have reviewed the accompanying condensed consolidated interim financial information of Airbus Group SE, Amsterdam, which
comprises the condensed consolidated statement of financial position as at 30 June 2016, the condensed consolidated statements ofcomprehensive income, changes in equity, and cash flows for the six-month period then ended 30 June 2016, and the notes,
comprising a summary of the significant accounting policies and other explanatory information.
The Board of Directors is responsible for the preparation and presentation of this condensed consolidated interim financial
information in accordance with IAS 34, ‘Interim Financial Reporting’ as adopted by the European Union. Our responsibility is toexpress a conclusion on this interim financial information based on our review.

Scope
We conducted our review in accordance with Dutch law including standard 2410, ‘Review of Interim Financial Information Performedby the Independent Auditor of the Entity’. A review of interim financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially lessin scope than an audit conducted in accordance with Dutch auditing standards and consequently does not enable us to obtainassurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated
interim financial information for the six-month period ended 30 June 2016 is not prepared, in all material respects, in accordancewith IAS 34, ‘Interim Financial Reporting’, as adopted by the European Union.

Amsterdam, 26 July 2016

Ernst & Young Accountants LLP

A.A. van Eimeren

Ernst & Young Accountants LLP is a limited liability partnership incorporated under the laws of England and Wales and registered with Companies House under number OC335594. The term
partner in relation to Ernst & Young Accountants LLP is used to refer to (the representative of) a member of Ernst & Young Accountants LLP. Ernst & Young Accountants LLP has its registeredoffice at 6 More London Place, London, SE1 2DA, United Kingdom, its principal place of business at Boompjes 258, 3011 XZ Rotterdam, the Netherlands and is registered with the Chamber ofCommerce Rotterdam number 24432944. Our services are subject to general terms and conditions, which contain a limitation of liability clause.