Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Year 2014 Report

Unaudited Condensed IFRS Consolidated
Financial Information of Airbus Group N.V.
for the year ended 31 December 2014
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
Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial Statements as at
31 December 2014 ................................................................................................................................. 7
1.

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

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

3.

Acquisitions and other M&A transactions ........................................................................... 12

4.

Segment information .............................................................................................................. 14

5.

Significant income statement items ..................................................................................... 16

6.

Significant items of the statement of financial position ..................................................... 17

7.

Significant cash flow items.................................................................................................... 20

8.

Number of shares ................................................................................................................... 21

9.

Earnings per share ................................................................................................................. 21

10. Related party transactions..................................................................................................... 22
11. Number of employees ............................................................................................................ 22
12. Litigation and claims .............................................................................................................. 22
13. Subsequent events ................................................................................................................. 241

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Unaudited Condensed IFRS Consolidated Income Statements

Revenues
Cost of sales
Gross margin
Selling, administrative & otherexpenses
Research and development
expenses
Other income

1 January 31 December 2014
M€%
60,713100-51,776
-85
8,937
15

1 January 31 December 2013 *)M€%
57,567100-49,613
-86
7,954
14

Deviation
M€
3,146-2,163983-2,780-4-3,021-5

241-3,391-6-3,118

-5

-273

330

1

272

0

58

Share of profit from investments
accounted for under the equity
method and other income
from investments
Profit before finance result andincome taxes
Interest income
Interest expense
Other financial result
Finance result
Income taxes
Profit for the period

895

1

483

1

412

3,991
142
-462
-458
-778
-863
2,350

7
0
-1
-1
-2
-1
4

2,570
161
-493
-278
-610
-477
1,483

5
0
-1
0
-1
-1
3

1,421
-19
31
-180
-168
-386
867

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

2,343
7

4
0

1,473
10

3
0

870
-3

Earnings per share
Basic
Diluted
*)

€

€

€

2,99
2,99

1,86
1,85

1,13
1,14

Previous year figures are adjusted due to the application of IFRS10 and IFRS11.

2

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Unaudited Condensed IFRS Consolidated Statements of Comprehensive
Income1 January 31 December 2014

1 January 31 December 2013 *)

2,350

1,483

-2,034

-67

-131

-1

577

20

244

-138

-6,390

2,266

71

-18

-22

-12

Tax on items that will be reclassified to profit or loss

1,961

-702

Other comprehensive income, net of tax-5,724

1 348

Total comprehensive income of the period-3,374

2,831-3,362-12-3,374

2,829
2
2,831

in M €
Profit for the period
Items that will not be reclassified to profit or loss:
Actuarial losses on defined benefit plans
Actuarial losses on defined benefit plans from investments
using the equity method
Tax on items that will not be reclassified to profit or loss
Items that will be reclassified to profit or loss:
Foreign currency translation differences for foreign operations
Net change in fair value of cash flow hedges
Net change in fair value of available-for-sale financial assets
Changes in other comprehensive income from investments
accounted for using the equity method

Attributable to:Equity owners of the parent
Non-controlling interests
Total comprehensive income of the period*)

Previous year figures are adjusted due to the application of IFRS10 and IFRS11.

3

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Unaudited Condensed IFRS Consolidated Statements of Financial PositionNon-current assets
Intangible assets
Property, plant and equipment
Investments under the equity method
Other investments and long-term financial
assetsOther non-current assets
Deferred tax assets
Non-current securities
Current assets
Inventories
Trade receivables
Other current assets
Current securities
Cash and cash equivalents

31 December 2014M€%

31 December 2013 *)M€%

Deviation
M€%

12,75816,388
3,391

13
17
3

12,50015,654
3,858

14
17
4

258
734
-467

2
5
-12

1,769

2

1,756

2

13

1

2,408
5,717
5,989
48,420

3
6
6
50

3,727
3,733
4,298
45,5264
4
550-1,319
1,984
1,691
2,894

-35
53
39
6

25,355
6,798
4,325
3,183
7,271
46,932

26
7
5
3
8
49

24,023
6,628
4,311
2,585
7,201
44,748

27
7
5
3
8
50

1,332
170
14
598
70
2,184

6
3
0
23
1
5

Assets of disposal group classified as held
for sale
Total assets

750

1

0

0

750

96,102

100

90,274

100

5,828

6

Total equity
Equity attributable to equity owners of theparentCapital stockReserves

785
7,489

1
8

783
7,216

1
8

2
273

0
4

Accumulated other comprehensive income-1,205

-1

2,915

3

-4,120-141

Treasury shares

-8
7,061
18
7,079

0
7
0
7

-50
10,86442
10,906

0
12
0
12

42
-3,803-24-3,827

-84
-35
-57
-35

10,4006,278
1,130
23,03840,846

11
7
1
24
43

9,604
3,804
1,454
18,15533,017

11
4
2
20
37

796
2,474
-324
4,883
7,829

8
65
-22
27
24

5,712
1,073
10,183738
29,79147,497

6
1
11
1
30
49

5,222
1,826
9,668
616
29,01946,351

6
2
11
0
32
51

490
-753
515
122
772
1,146

9
-41
5
20
3
2

680

1

0

0

680

89,023
96,102

93
100

79,36890,274

88
100

9,655
5,828

Non-controlling interests
Non-current liabilities
Non-current provisions
Long-term financing liabilities
Deferred tax liabilities
Other non-current liabilities
Current liabilities
Current provisions
Short-term financing liabilities
Trade liabilities
Current tax liabilities
Other current liabilities
Liabilities directly associated with assets
classified as held for sale
Total liabilities
Total equity and liabilities
*)

12
6

Previous year figures are adjusted due to the application of IFRS10 and IFRS11.

4

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Unaudited Condensed IFRS Consolidated Statements of Cash Flows
1 January 31 December 2014

1 January 31 December 2013 *)

2,343

1,473

7

10

Depreciation and amortization

2,150

1,927

Valuation adjustments

961

372

Deferred tax expense

317

46

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

148

-9

in M €
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

Results on disposals of non-current assets

-93

-58

Results of companies accounted for by the equity method

-840

-434

Change in current and non-current provisions

415

816

Change in other operating assets and liabilities-462-2,386-223-2,091

Cash provided by operating activities

2,560

1,829

-2,548-2,918

Reimbursement from / contribution to plan assets

Investments:- Purchases of intangible assets, PPE- Proceeds from disposals of intangible assets, PPE

232

48

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

-47

-16

- Proceeds from disposals of subsidiaries (net of cash)-34

0- Payments for investments in associates and other investments
and long-term financial assets

-36

-293

- Proceeds from disposals of associates and other investments
and long-term financial assets

1,083

154

- Dividends paid by companies valued at equity
Change of securities

143-2,016

Cash (used for) investing activities-3,223

1,267-1,612

Change in long-term and short-term financing liabilities

930

1,133

Cash distribution to Airbus Group N.V. shareholders

-587

-467

Dividends paid to non-controlling interests-2-2

Changes in capital and non-controlling interests

52

Change in treasury shares

102

171
-1,915

Cash provided by (used for) financing activities
Effect of foreign exchange rate changes and other valuation adjustments on cash andcash equivalents

495-1,080256

Net increase (decrease) of cash and cash equivalents

88

-107
-970

Cash and cash equivalents at beginning of period

7,201

8,171

Cash and cash equivalents at end of period

7,289

7,201

Thereof presented as cash and cash equivalents

7,271

7,201

18

0

Thereof presented as part of disposal groups classified as held for sale*)

146

Previous year figures are adjusted due to the application of IFRS10 and IFRS11.

5

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Unaudited Condensed IFRS Consolidated Statements of Changes in Equity
Equityattributable toequity owners of Non-controllinginterests
the parent

in M €
Balance at 31 December 2012, as reported

10,403Adjustment *)

17

Total
10,420

-143

-1

-144

Balance at 1 January 2013, adjusted *)10,26016

10,276

Profit for the period *)

1,473

10

1,483

Other comprehensive income *)

1,356

-8

1,348

*)

2,829

2

2,831

Total comprehensive income
Cash distribution to shareholders/ dividends tonon-controlling interests

-467

-2

-469

Capital increase

242

2

244

Capital decrease

-74

0

-74

Equity transactions (IAS 27)

-118

24

-94

Change in treasury shares-1,9150-1,915

107

0

107

Balance at 31 December 2013, adjusted *)Share-based Payment (IFRS 2)

10,86442

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 tonon-controlling interests-3,362-12-3,374

-587

-2

-589

Capital increase

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

Share-based Payment (IFRS 2)

Change in treasury shares

-5

0

-5

Balance at 31 December 2014

7,061

18

7,079

*)

Previous year figures are adjusted due to the application of IFRS10 and IFRS11.

6

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Explanatory notes to the Unaudited Condensed IFRS Consolidated Financial
Statements as at 31 December 2014

1. The Company
The accompanying Unaudited Condensed IFRS Consolidated Financial Statements present theoperations of Airbus Group N.V. (formerly European Aeronautic Defence and Space Company
EADS N.V.) and its subsidiaries (the “Group”), a Dutch public limited liability company (Naamloze
Vennootschap) legally seated in Amsterdam (current registered office at Mendelweg 30, 2333 CS
Leiden, The Netherlands), and are prepared and reported in Euros (“€”). On 1 January 2014, theGroup has been rebranded from EADS to Airbus Group as part of a wider reorganization including
integration of the Group’s defence and space activities. The Group’s core business is the
manufacturing of commercial aircraft, civil and military helicopters, commercial space launchvehicles, missiles, military aircraft, satellites, defence systems, defence electronics and therendering of services related to these activities. The Unaudited Condensed IFRS Consolidated
Financial Statements for the year ended 31 December 2014 were authorized for issue by the
Airbus Group Board of Directors on 26 February 2015.

2. Accounting policies
These Unaudited Condensed Consolidated Financial Statements have been prepared inaccordance 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 2014 and Part 9 of Book 2 of the Netherlands Civil Code. They comprise (i) IFRS,(ii) International Accounting Standards (“IAS”) and (iii) Interpretations originated by the IFRSInterpretations Committee (“IFRIC”) or former Standards Interpretation Committee (“SIC”).
Financial reporting rules applied for the first time in 2014:
The following new or amended Standards were applied for the first time in 2014 and are effective
for Airbus Group as of 1 January 2014. If not otherwise stated, their first application has not had amaterial impact on Airbus Group’s Consolidated Financial Statements as well as its basic anddiluted earnings per share.
Amendments to IAS 32 “Financial Instruments: Presentation” clarify the IASB’s requirements foroffsetting financial instruments.
Amendments to IAS 36 “Impairment of Assets” modify the recoverable amount disclosures for nonfinancial assets.
Amendments to IAS 39 “Financial Instruments: Recognition and Measurement” provide an
exception to the requirement for the discontinuation of hedge accounting in IAS 39 and IFRS 9 incircumstances when a hedging instrument is required to be novated to a central counterparty as aresult of laws or regulations.

726.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

The IASB issued IFRS 10 “Consolidated Financial Statements”, IFRS 11 “Joint Arrangements”,
IFRS 12 “Disclosure of Interests in Other Entities” and consequential amendments to IAS 27“Separate Financial Statements” and amendments to IAS 28 “Investments in Associates and Joint
Ventures” as well as the Transition Guidance (Amendments for IFRS 10, IFRS 11 and IFRS 12).
IFRS 10 supersedes the requirements related to Consolidated Financial Statements in IAS 27“Consolidated and Separate Financial Statements” (amended 2008) as well as SIC 12“Consolidation – Special Purpose Entities”. IFRS 11 supersedes IAS 31 “Interests in Joint
Ventures” (amended 2008) and SIC 13 “Jointly Controlled Entities – Non-Monetary Contributions
by Venturers”. IFRS 12 replaces disclosure requirements in IAS 27, IAS 28 and IAS 31.
IFRS 10 defines the principle of control and establishes control as the sole basis for determining
which entity should be consolidated in the Consolidated Financial Statements: An investor controls
an investee when it is exposed, or has rights, to variable returns from its involvement with theinvestee and has the ability to affect those returns through its power over the investee. The
standard provides additional guidance to determine control in cases difficult to assess such as insituations where an investor holds less than a majority of voting rights, but has the practical ability
to direct the relevant activities of the investee unilaterally by other means as well as in cases ofagency relationships which were neither addressed by IAS 27 nor by SIC 12.
IFRS 11 provides guidance for the accounting of joint arrangements by focusing on the rights andobligations arising from the arrangement. The standard distinguishes between two types of joint
arrangements: joint operations and joint ventures. A joint operation is a joint arrangement whereby
the parties that have joint control of the arrangement (i.e. joint operators) have rights to the assets,
and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement
whereby the parties that have joint control of the arrangement (i.e. joint venturers) have rights tothe net assets of the arrangement. IFRS 11 requires a joint operator to recognize and measure theassets and liabilities (and recognize the related revenues and expenses) in relation to its interest in
the arrangement applicable to the particular assets, liabilities, revenues and expenses. A joint
venturer is required to recognize an investment and to account for this investment using the equity
method. The proportionate consolidation method may no longer be used for joint ventures.
IFRS 12 provides disclosure requirements for all forms of interests in other entities, including
subsidiaries, joint arrangements, associates, structured entities (formerly referred to as “special
purpose entities”) and off-balance sheet vehicles in one single standard. The standard requires anentity to disclose information that enables users of financial statements to evaluate the nature of,and risks associated with, its interests in other entities and the effects of those interests on its
financial position, financial performance and cash flows.
The first time application of IFRS 10 and IFRS 11 has an impact on Airbus Group’s consolidation
scope: The application of the new control concept as defined by IFRS 10 resulted in the exclusionof five structured entities which were previously fully consolidated under IAS 27 and SIC 12 fromthe consolidation scope. Additionally, twelve entities which were previously classified as joint
ventures under IAS 31 and consolidated by using the proportional consolidation method in
accordance with the Airbus Group accounting policy choice under IAS 28 are now accounted forusing the equity method as described above under IFRS 11. This had a material impact on theGroup’s financial statement. The first time application of IFRS 11 did not result in any
reassessment regarding the classification of Airbus Group entities as joint ventures under IAS 31.
The following tables summarise the impacts on the comparative information on the Group’s
financial position, income statement and statement of cash flows resulting from the change inconsolidation scope:826.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Condensed consolidated statement of financial position as at 31 December 2013
As previously
reported

IFRS 10 and 11

As restatedIntangible assets

13,653-1,153

12,500Property, plant & equipment

15,925-271

15,654

Investment accounted under the equity method

2,902

956

3,858

in M €
Non-current assets

Other non-current assets

13,733-219

13,514

46,213-687

45,52625,060-1,03724,023Current assets
Inventories
Trade receivables

7,239

-611

6,628

Other current assets

7,034

-138

6,896

Cash and cash equivalents

7,765

-564

7,201

47,098-2,35044,748

Total assets

93,311-3,037

90,274

Total equity

11,054-148

10,906

10,046

-442

9,604

Non-current liabilities
Non-current provisions
Other non-current liabilities

23,630-217

23,41333,676-659

33,017

Current provisions

5,323

-101

5,222

Trade liabilities

10,372

-704

9,668

Current liabilities

Other current liabilities
Total equity and liabilities

932,886-1,42531,461

48,581-2,23046,351

93,311-3,037

90,27426.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Condensed consolidated statement of financial position as at 1 January 2013
As previously
reported

IFRS 10 and 11

As restatedIntangible assets

13,429-1,15812,271

Property, plant & equipment

15,268-294

14,974

Investment accounted under the equity method

2,662

922

3,584

in M €
Non-current assets

Other non-current assets

15,435-259

15,176

46,794-789

46,00523,216-1,01522,201

Current assets
Inventories
Trade receivables

6,788

-605

6,183

Other current assets

6,567

-137

6,430

Cash and cash equivalents

8,756

-585

8,171

45,327-2,342

42,985

Total assets

92,121-3,131

88,990Total equity

10,420-144

10,276

9,850

-439

9,411

Non-current liabilities
Non-current provisions
Other non-current liabilities

23,202-270

22,932

33,052-709

32,343Current provisions

6,039

-99

5,940

Trade liabilities

9,921

-650

9,271

Current liabilities

Other current liabilities
Total equity and liabilities

10

32,689-1,52931,16048,649-2,27846,371

92,121-3,131

88,99026.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Condensed consolidated income statement for the year ended 31 December 2013
As previously
reported
59,256IFRS 10 and 11

As restated-1,68957,567-50,895

1,282-49,613Gross Margin

8,361

-407

7,954

Selling, administrative & other expenses-3,176155-3,021

Research and development expenses-3,160in M €
Revenues
Cost of sales

42-3,118Other income
Share of profit from investments accounted for underthe equity method and other income
from investments
Profit before finance result and income taxes

236

36

272

346
2,607

137
-37

483
2,570

Interest result

-329

-3

-332

Other financial result

-301

23

-278

Finance result

-630

20

-610

Income taxes

-502

25

-477

Profit for the period

1,475

8

1,483

EPS 2013 reported: basic 1.85, diluted 1.84 / EPS 2013 restated due to the application of IFRS
10 and 11: basic 1.86, diluted 1.85

Condensed consolidated statement of cash flow as of 31 December 2013
As previously
reported
1,931

in M €Cash provided by operating activities

IFRS 10 and 11

As restated

-102

1,829

Cash (used for) investing activities-1,742130-1,612

Cash (used for) financing activities-1,068-12-1,080

Others

-112

5

-107

Net decrease of cash and cash equivalents

-991

21

-970

11

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

3. Acquisitions and other M&A transactionsa) Acquisitions
On 25 July 2014, Airbus Group N.V., Leiden (Netherlands) acquired 100% shares in Salzburg
München Bank AG from Raiffeisenverband Salzburg. The Salzburg München Bank AG is a fullylicensed bank based in Munich (Germany) with around 300 M € of total assets serving small andmedium enterprises and private clients. The acquisition of Salzburg München Bank aims toprovide additional financing options for the Group’s businesses.
On 28 July 2014, Airbus Operations S.L.U., Getafe (Spain), acquired 58.49% shares in Alestis
Aerospace S.L., La Rinconada (Spain), for a total consideration of 28 M € including 6 M € due tothe separate recognition of settlements of pre-existing relationships. This provides Airbus Group
with a majority shareholding of in total 60.16% in Alestis Aerospace S.L. Airbus’ investment isintended to secure the supply chain for civil and military programmes.
The following table summarises the consideration transferred, the fair value of identifiable assets
acquired, liabilities assumed and any non-controlling interest as at the acquisition date. The fairvalues remain provisional due to ongoing purchase price allocation project, but will be finalised
within 12 months after the acquisition date.
Fair value recognised on acquisition in € M

2014 Acquisitions

Total assets acquired

607

Total liabilities assumed-614

Net liabilities assumed
Non-controlling interests

-7
*)

-17

Consideration transferred
Preliminary goodwill arising on acquisition

63
**)

54

Gain on acquisition1*)

Non-controlling interest portion related to acquisition of Alestis, measured at its proportional share in net assets.
None of the goodwill of the Group’s 2014 M&A transaction is considered to be tax deductible in the respect of local tax
accounts.

**)b) Disposals
On 28 February 2014, EADS North America, Inc., Herndon (VA, USA) sold 100% of the assets
and liabilities of its Test and Services division to Astronics Corp., East Aurora (NY, USA), for a
total consideration of 51 M €.
On 7 March 2014, Astrium Services GmbH, Ottobrunn (Germany) disposed of 100% of the shares
of ND Satcom GmbH, Immenstaad (Germany) to Quantum Industries S.à.r.l., Luxembourg(Luxembourg) with economic effect as of 1 March 2014, leading to a negative consideration of
9 M €.
On 10 July 2014, Airbus Defence and Space sold its Test & Services activities to a consortium
consisting of ACE Management S.A., Paris (France) and IRDI S.A., Toulouse (France). The total
consideration received amounted to 35 M € (thereof 28 M € consideration received in cash and7 M € for the shares in Test & Mesures Groupe SAS). The amount of net assets sold was 31 M €.

1226.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

On 27 November 2014, Airbus Group. in an off-market lock trade sold to Dassault Aviation a totalof 810,072 Dassault Aviation shares at a price of 980 € per share representing a total amount of
794 M € pre transaction costs. The gain recognized in share of profit from investments amounted
to 343 M €. After this transaction, Airbus Group held 38.82% of Dassault Aviation’s share capitaland associated voting rights and then following the cancellation by Dassault Aviation of 9% of its
shares, as of 31 December 2014, Airbus Group holds 42.11% with associated voting rights.
On 9 December 2014, Airbus Group signed a share purchase agreement with the State of Finland
to sell its entire 26.8% share in Patria Oyj to the Finnish defence, security and aviation services
provider for a total consideration of 133 M €. The transaction was closed on 11 December 2014
and the Group recognized a 47 M € capital gain within share of profit from investments.

c) Disposal groups classified as held for sale
As of 31 December 2014, Airbus Group accounted for non-current assets / disposal groups
classified as held for sale in the amount of 750 M € (2013: 0 M €). The disposal groups in 2014
include liabilities directly associated with non-current assets classified as held for sale amounting
to 680 M € (2013: 0 M €). The disposal groups classified as held for sale comprise the following
transactions:Airbus Safran Launcher Joint Venture (“ASL”)
On 16 June 2014, Airbus Group and Safran announced the intention to create a 50/50 joint
venture consolidating their respective launcher and propulsion system activities in France andGermany.
On 3 December 2014, the joint venture Airbus Safran Launchers has been created after theapproval of the development and production of a new Ariane 6 launcher at the ESA Ministerial
Conference. The partners decided to structure the operation in two phases with the first phaseconsisting in the joint venture entity taking responsibility and gathering resources to coordinate
programme management of civil activities of the launcher business and also carrying relevant
participation. In a second phase all assets, contracts and industrial capabilities shall be contributed
enabling the joint venture to carry out all activities relating to the design, development,
manufacturing and selling of launchers, propulsion systems, satellite and space vehicle propulsion
for civil and military applications and the selling and commercialization of civil launch services.
Implementation of the second phase is subject to the joint venture entering into a development
contract for Ariane 6.
After approval of the ESA Ministerial Conference implementation of first phase was confirmed andassociated assets and liabilities have been classified as held for sale as at 31 December 2014.
On 14 January 2015, Airbus Group and Safran have completed the first phase of the integration
process enabling Airbus Safran Launchers to become operational.
Electronics Oostkamp (“EO”)
On 23 December 2014 Airbus Group signed an agreement with Parter Capital Group AG for thesale of Airbus Defence and Space’s Electronics Oostkamp facility in Belgium. Airbus Group hasrecognised an associated loss of 7 M € in other expenses in 2014. The transaction was closed on
21 January 2015.

13

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

4. Segment information
Having conducted a strategy review and in order to improve competitiveness and better adapt toshrinking traditional markets, the Group’s defence and space businesses are combined into one
segment from 1 January 2014 onwards. Improving access to international customers, creating costand market synergies in the Group’s operations and product portfolio and better focusing theGroup’s research and development activities are among the goals of this reorganization.
The Group operates in three reportable segments which reflect the internal organizational andmanagement structure according to the nature of the products and services provided.
• Airbus (before 1 January 2014: Airbus Commercial) — Development, manufacturing, marketingand sale of commercial jet aircraft of more than 100 seats; aircraft conversion and related
services; development, manufacturing, marketing and sale of regional turboprop aircraft andaircraft components.
• Airbus Helicopters (before 1 January 2014: Eurocopter) — 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 bordersecurity and secure communications solutions and logistics; training, testing, engineering andother related services; development, manufacturing, marketing and sale of missiles systems;
development, manufacturing, marketing and sale of satellites, orbital infrastructures andlaunchers; provision of space related services; development, manufacturing, marketing and saleof military transport aircraft and special mission aircraft and related services. The former
reportable segments Cassidian, Astrium and Airbus Military form the new reportable segment
Airbus Defence and Space.
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 theGroup’s Headquarters such as the newly acquired bank and other activities not allocable to thereportable segments, combined together with consolidation effects, are disclosed in the column“Others/ HQ / Conso.”. The corresponding prior period information has been restated.
Airbus Group uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its
economic performance. The term “exceptionals” refers to such items as depreciation expenses offair value adjustments relating to the former EADS merger and the Airbus combination, as well as
impairment charges thereon. It also comprises disposal impacts related to goodwill and fair value
adjustments from these transactions. EBIT pre-goodwill impairment and exceptionals is treated bymanagement as a key indicator to measure the segments’ economic performance.

14

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

AirbusAirbusDefence
Airbus Helicopters and Spacein M €

Total Others/ HQ/
segments
Conso.

Consolidated

Year ended 31 December 2014
Total revenues

42,2806,524

13,02561,829482

62,311

Internal revenues

-749

-528

-297

-1,574-24-1,598

Revenues

41,531

5,996

12,72860,255458

60,713

Research anddevelopment expenses

2,667

325

360

3,352

39

3,391

EBIT pre-goodwill imp.
and exceptionals

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

Disposal of goodwill
Exceptionals
Profit before financeresult and income taxes
Finance result-778

Income taxes-863

Profit for the period

2,350Year ended 31 December 2013 *)Total revenues **)Internal revenues**)

Revenues **)Research anddevelopment expenses**)

EBIT pre-goodwill imp.
and exceptionals **)Impairment anddisposal of goodwill
Exceptionals
Profit before financeresult and income taxes**)

39,494

6,297

13,121

58,912457

59,369

-933

-486

-382

-1 801-1-1,802

38,561

5,811

12,73957,111456

57,567

2,433

306

344

3,083

35

3,118

1,593

397

659

2,649

-25

2,624

0

0

0

0

-15

-15

-26

-1

-11

-38

-1

-39

1,567

396

648

2,611

-41

2,570

Finance result **)Income taxes

Profit for the period
*)
**)

-610

**)

-477
**)

1,483

Previous year figures are adjusted due to the application of IFRS10 and IFRS11.
Previous year figures are adjusted due to the new segment structure.

15

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

5. Significant income statement items
Revenues of 60,713 M € (2013 adjusted: 57,567 M €) increased by +3,146 M €, mainly at Airbus(+2,786 M €). The revenue growth in Airbus results from a more favourable delivery mix.
The Gross margin increased by +983 M € to 8,937 M € compared to 7,954 M € (adjusted) in 2013
with contribution mainly from Airbus. Gross margin rate increased from 13.8% to 14.7%. In Airbus,
the increase was driven by operational improvement including A380 progress towards breakevenand the favourable evolution of maturing hedges, partially offset by increased A350 XWB support
costs. In Q4 2013 a negative charge of 434 M € was recorded on the A350 XWB programme
contributing to the improvement seen in 2014.
The A350 XWB Entry into service occurred at the end of 2014, with the first A350 being delivered
to Qatar Airways on 22 December. Despite this important achievement, significant challenges
remain. The industrial ramp up preparation is underway and associated risks will continue to beclosely monitored in line with the schedule, aircraft performance and overall cost envelope, as per
customer’s commitment.
After eight aircraft deliveries in 2014, the A400M programme is in a phase of progressive
enhancement of military capabilities with delays incurred. The sequence of progressive
enhancements and associated deliveries are under negotiation with the customers to reflectrevised programme baseline and delivery schedule.
In the last quarter of 2014, Management has reviewed the programme evolution mostly driven bymilitary functionality challenges and industrial ramp-up together with associated mitigation actions.
As a result of this review, Airbus Defence and Space has recorded based on Management best
estimate an additional net charge of 551 M € for the period ended 31 December 2014.
The A400M SOC 1 milestone remains to be achieved. SOC 1 fell due end October 2013, and thetermination right related thereto became exercisable by OCCAR/Nations on 1 November 2014
after a 12-month grace period. It has not at the date hereof been exercised. Management judgesthat it is highly unlikely that this termination right will be exercised.
The A400M programme remains in a critical phase and associated risks will continue to be closely
monitored.
Research and development expenses increased by -273 M € to -3,391 M € (2013 adjusted:-3,118 M €) mainly due to an increase in A350 XWB.
Other income increased by +58 M € to 330 M € (2013 adjusted: 272 M €) mainly as a result of thesale of the Paris Headquarters building.
Share of profit from investments accounted for under the equity method and other income
from investments of 895 M € (2013 adjusted: 483 M €) mainly consists of the share of the resultof Dassault Aviation of 598 M € (2013: 247 M €), and of GIE ATR and MBDA.
The Dassault Aviation at equity result 2014 includes a positive catch-up on 2013 results and a gainof 343 M € from the partial sale of shares (see Note 3 “Acquisitions and other M&A transactions”).
The share of profit of Patria of 62 M€ includes a gain of 47 M € from the disposal of shares (seeNote 3 “Acquisitions and other M&A transactions”).

16

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Finance result amounted to -778 M € (2013 adjusted: -610 M €) and includes interest result of-320 M € (2013 adjusted:-332 M €) and other financial result of -458 M € (2013 adjusted:-278 M €).
Other financial result mainly includes the negative impact of revaluation of financial instruments(-240 M €, 2013 adjusted: -31 M €), the negative impact of unwinding of discounted provisions(-117 M €, 2013: -171 M €) and the negative impact from foreign exchange valuation of monetary
items (-121 M €, 2013: -64 M €).
The income tax expense of -863 M € (2013 adjusted: -477 M €) corresponds to an effective
income tax rate of 26.9% (2013 adjusted: 24.3%).

6. Significant items of the statement of financial positionNon-current assets
Intangible assets increased by +258 M € to 12,758 M € (prior year-end adjusted: 12,500 M €).
This mainly relates to Airbus (8,660 M €), Airbus Defence and Space (3,376 M €) and Airbus
Helicopters (704 M €) and includes goodwill of 9,979 M € (prior year-end adjusted: 9,872 M €).
Included within goodwill is a +55 M € increase from the acquisition of Alestis.
The annual impairment tests were performed in the fourth quarter 2014 and led to no impairment
charge. Capitalization of development costs for the A350 XWB programme started in the second
quarter 2012. In 2014, an amount of 58 M € has been capitalized resulting in a total amount of
777 M €.
Property, plant and equipment increased by +734 M € to 16,388 M € (prior year-end adjusted:
15,654 M €) and includes leased assets of 213 M € (prior year-end adjusted: 351 M €). The
increase was mainly driven by the A350 XWB programme. Property, plant and equipment also
includes “Investment property” amounting to 67 M € (prior year-end: 69 M €).
Investments accounted for under the equity method of 3,391 M € (prior year-end adjusted:
3,858 M €) mainly include the equity investment in Dassault Aviation of 2,429 M € (2013:
2,747 M €), Atlas Group and MBDA. The equity investment in Dassault Aviation includes an IFRS
catch-up adjustment for income, other comprehensive income relating to the prior period and theeffect of the partial disposal of Dassault Aviation shares (see Note 3 “Acquisitions and other M&A
transactions”).
Other investments and other long-term financial assets of 1,769 M € (prior year-end adjusted:
1,756 M €) are related to Airbus for an amount of 790 M € (prior year-end adjusted: 702 M €),mainly concerning the non-current portion of aircraft financing activities.
Other non-current assets mainly comprise non-current derivative financial instruments and noncurrent prepaid expenses. The decrease by -1,319 M € to 2,408 M € (prior year-end adjusted:
3,727 M €) resulted from the negative variation of the non-current portion of fair values ofderivative financial instruments (-1,491 M €).

17

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Deferred tax assets increased by +1,984 M € to 5,717 M € (prior year-end adjusted: 3,733 M €)mainly as a result of variations in the fair values of derivative financial instruments.
The fair values of derivative financial instruments are included in other non-current assets(502 M €, prior year-end: 1,993 M €), in other current assets (208 M €, prior year-end adjusted:
716 M €), in other non-current liabilities (-3,271 M €, prior year-end: -671 M €) and in other current
liabilities (-2,232 M €, prior year-end adjusted: -302 M €), which corresponds to a total net fairvalue of -4,793 M € (prior year-end: +1,736 M €). The volume of hedged US dollar-contracts
increases from 76 billion US dollar as at 31 December 2013 to 88 billion US dollar as at 31
December 2014. The US dollar spot rate is 1.21 USD/€ and 1.38 USD/€ at 31 December 2014 andat 31 December 2013 respectively. The average US dollar hedge rate for the hedge portfolio of theGroup remains almost stable at 1.33 USD/€ as at 31 December 2014 compared to 1.34 USD/€ as
at 31 December 2013.
Non-current securities with a remaining maturity of more than one year increased by +1,691 M €to 5,989 M € (prior year-end adjusted: 4,298 M €). The movement is related to the cash
management policy of the Group.

Current assets
Inventories of 25,355 M € (prior year-end adjusted: 24,023 M €) increased by +1,332 M €. This ismainly related to Airbus (+1,804 M €), partly offset by a decrease in Airbus Defence and Space(-370 M €) and Airbus Helicopters (-167 M €). The increase in Airbus is mainly driven by theincreased activity on the A350 XWB programme.
Trade receivables increased by +170 M € to 6,798 M € (prior year-end adjusted: 6,628 M €),mainly in Airbus Helicopters, partly compensated by a decrease in Airbus Defence and Space.
This decrease is due to the reclassification to the disposal groups classified as held for sale.
Other current assets include “Current portion of other long-term financial assets”, “Current otherfinancial assets”, “Current other assets” and “Current tax assets”. The increase of +14 M € to
4,325 M € (prior year-end adjusted: 4,311 M €) includes the negative variation of the current
portion of fair values of derivative financial instruments (-508 M €), more than compensated byincreases in VAT receivables (+289 M €), in receivables from non-consolidated affiliatedcompanies (+109 M €), in miscellaneous other current assets (+82 M €) and in prepaid expenses(+58 M €).
Current securities with a remaining maturity of one year or less increased by +598 M € to
3,183 M € (prior year-end adjusted: 2,585 M €).
Cash and cash equivalents increased from 7,201 M € (prior year-end adjusted) to 7,271 M €(see also Note 7 “Significant cash flow items”).

Total equity
Equity attributable to equity owners of the parent (including purchased treasury shares) amounted
to 7,061 M € (prior year-end adjusted: 10,864 M €) representing a decrease of -3,803 M €. Thisdecrease was due to a dividend distribution of -587 M € (0.75 € per share) and a reduction in othercomprehensive income of -5,705 M €, mainly derived from the mark to market revaluations of thehedge portfolio and changes of actuarial gains and losses due to an update of interest rates for

18

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

pensions obligations. This was partly offset by a net income of +2,343 M € and the sale of treasury
shares of +102 M €.
Non-controlling interests decreased to 18 M € (prior year-end adjusted: 42 M €). The decrease
mainly resulted from the acquisition of Alestis and the subsequent recognition of its minority
shareholders (-25 M €).

Non-current liabilities
Non-current provisions of 10,400 M € (prior year-end adjusted: 9,604 M €) include the noncurrent portion of pension provisions, which increased by +1,998 M € to 7,864 M € (prior year-end
adjusted: 5,866 M €). Due to significant decreases of the discount rates for the various pension
schemes of the Group, pension provisions increase by 1,998 M €.
Other provisions are also included in non-current provisions, and decreased by -1,202 M € to
2,536 M € (prior year-end adjusted: 3,738 M €). This decrease is mainly linked to thereclassification to current loss contract provisions and to the net presentation on the A350 XWB
programme where inventories are presented net of the respective portion of the contract loss
provision.
Included in non-current (and current) provision are costs for the A380 programme related to inservice technical issues identified and with solutions defined, which reflects the latest facts andcircumstances. Airbus 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 ofrevenue, profit or use). However, in view of overall commercial relationships, contract adjustments
may occur, and be considered on a case by case basis.

Long-term financing liabilities, mainly comprising bonds and liabilities to financial institutions
increased by +2,474 M € to 6,278 M € (prior year-end adjusted: 3,804 M €). In April 2014 a
1 billion € bond was issued with a 10 year-maturity, which will pay a 2.375% coupon. In October
2014 a further bond for a total of 0.5 billion € was issued with a 15 year-maturity, which carries a
coupon of 2.125%. In December 2014, the group entered into a 627 M USD loan agreement with
the EIB with a 10 year-maturity and a fixed 2.52% interest rate.
Other non-current liabilities, comprising “Non-current other financial liabilities”, “Non-current
other liabilities” and “Non-current deferred income”, increased in total by +4,883 M € to 23,038 M €(prior year-end adjusted: 18,155 M €). Advance payments received increased by +2,028 M € andthe negative fair values of financial instruments by +2,600 M €.

Current liabilities
Current provisions increased by +490 M € to 5,712 M € (prior year-end adjusted: 5,222 M €) andcomprise the current portion of pensions provisions (386 M €) and of other provisions (5,326 M €).
The increase is mainly linked to the reclassification of formerly non-current contract loss provisions
for the A350 XWB. This was partly compensated by a decrease due to the A400M programme onwhich inventories are presented net of the respective portion of the contract loss provision.
Short-term financing liabilities decreased by -753 M € to 1,073 M € (prior year-end adjusted:
1,826 M €), mainly due to the repayment of the Group’s repurchase agreements and EIB loan.

19

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Trade liabilities increased by +515 M € to 10,183 M € (prior year-end adjusted: 9,668 M €). This
increase occurred mainly at Airbus Defence & Space.
Other current liabilities include “Current other financial liabilities”, “Current other liabilities” and“Current deferred income”. These liabilities increased by +772 M € to 29,791 M € (prior year-end
adjusted: 29,019 M €) mainly due to the increase in the negative fair values of derivative financial
instruments (+1,930 M €), to higher deferred income (+105 M €) and to higher value added tax
liabilities (+75 M €), partly offset by a decrease of advance payments received (-1,549 M €).

7. Significant cash flow items
Cash provided by operating activities has improved by +731 M € to +2,560 M € (2013 adjusted:+1,829 M €).
Gross cash flow from operations (before changes in other operating assets and liabilities) of+4,946 M € increased compared to the prior period (2013 adjusted: +3,920 M €).
Changes in other operating assets and liabilities amounts to -2,386 M € (2013 adjusted:-2,091 M €) mainly due to an increase in inventories at Airbus. This increase reflects investment inprogrammes to support both production and development, particularly for the A350 XWB.
Cash (used for) investing activities amounts to -3,223 M € (2013 adjusted: -1,612 M €). This
mainly comprises purchases of intangible assets and property, plant and equipment of -2,548 M €(2013 adjusted: -2,918 M €) reflecting investments to support the ramp-up phase mainly for A350
XWB, and a change in securities of -2,016 M € (2013 adjusted: +1,267 M €). This was partly
compensated by proceeds from disposals of associates amounting to +1,083 M € (2013 adjusted:+154 M €) mainly due to the partial sale of Dassault Aviation shares (see Note 3 “Acquisitions andother M&A transactions”).
Proceeds from disposal of intangible assets and property, plant and equipment amounts to+232 M € (2013 adjusted: +48 M €) and results mainly from the sale of the Paris Headquarters
building.
Proceeds from disposal of subsidiaries amounts to -34 M € (2013: 0 M €) and corresponds to thesales of Test & Services and ND Satcom GmbH.
Acquisitions of subsidiaries amounts to -47 M € (2013 adjusted: -16 M €) and mainly reflects
acquisitions of Alestis and Airbus Group Bank.
Dividends paid by companies valued at equity amounts to +143 M € (2013 adjusted: +146 M €)and comprises mainly MBDA (+57 M €), Dassault (+42 M €) and Atlas Group (+23 M €).
Cash provided by (used for) financing activities increased by +1,575 M € to +495 M € (2013adjusted:-1,080 M €). This increase comprises changes in long-term and short-term financing liabilities of+930 M € (2013 adjusted: +1,133 M €) and changes in treasury shares of +102 M € (2013:-1,915 M € due to share buy-back programme). The increase in long-term and short-term financing
liabilities is mainly due to the issue of two bonds and movements on the loan agreements (pleaserefer to Note 6 “Long-term financing liabilities” and “Short-term financing liabilities”). This increaseis partly offset by the cash distribution to shareholders of -587 M € (2013: -467 M €).

20

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

8. Number of shares
The total number of shares issued is 784,780,585 and 783,157,635 as of 31 December 2014 and
31 December 2013 respectively. The Group’s shares are exclusively ordinary shares with a parvalue of 1.00 €.
During the year 2014, the number of treasury stock held by Airbus Group decreased from2,835,121 as of 31 December 2013 to 431,832 as of 31 December 2014. While most of theseshares were sold back to the market, 248,469 shares were cancelled (2013: 53,197,232 shares).
In 2014, the Group issued 1,871,419 new shares due to the exercise of stock options (in 2013:
8,986,922 new shares).

9. Earnings per share
Basic earnings per share are calculated by dividing profit for the period attributable to equity
owners of the parent (Net income) by the weighted average number of issued ordinary shares
during the period, excluding ordinary shares purchased by the Group and held as treasury shares:

1 January 31 December 2014

1 January 31 December 2013

Net income attributable to equity owners of the parent *)2,343 M €1,473 M €Weighted average number of ordinary shares outstanding

782,962,385

792,466,862

2.99 €

1.86 €

Basic earnings per share*)*)

Previous years’ figures are adjusted due to the application of IFRS10 and IFRS11.

For calculation of the diluted earnings per share, the weighted average number of ordinary
shares is adjusted to assume conversion of all potential ordinary shares. The Group’s categories
of dilutive potential ordinary shares are stock options and share-settled performance units for
Executive Committee members relating to long-term incentive plans for 2009 to 2013. Since inththth
2014 the average price of Airbus Group shares exceeded the exercise price of the 6 , 7 and 8
th
th
th
th
stock option plan as well as the share-settled performance units (in 2013: the 5 , 6 , 7 and 8
stock option plan), 1,193,364 potential shares (in 2013: 1,660,950 shares) were considered in thecalculation of diluted earnings per share.

1 January 31 December 2014

1 January 31 December 2013

Net income attributable to equity owners of the parent *)2,343 M €1,473 M €Weighted average number of ordinary shares outstanding(diluted)

784,155,749

794,127,812

2.99 €

1.85 €

Diluted earnings per share*)*)

Previous years’ figures are adjusted due to the application of IFRS10 and IFRS11.

21

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

10. Related party transactions
In December 2012 the Board of Directors announced a Multiparty Agreement, which was
subsequently approved by the shareholders in an Extraordinary General Meeting on 27 March
2013, aimed at normalising and simplifying the governance of the Group while securing ashareholding structure that allows France, Germany and Spain to protect their legitimate strategicinterests. The Completion (“Consummation”) of the Multiparty Agreement occurred on 2 April 2013and previously existing shareholder agreements with the French government, Daimler AG,
Lagardère Group and the Spanish government (SEPI) were terminated. Consequently from thisdate onwards the Group no longer considers these former shareholders as related parties under
IAS 24.
The Group has entered into various transactions with related entities that have all been carried out
in the normal course of business.

11. Number of employees
The number of employees as at 31 December 2014 is 138,622 as compared to 138,404 (adjusted)
as at 31 December 2013.

12. Litigation and claims
Airbus Group is involved from time to time in various legal and arbitration proceedings in theordinary course of its business, the most significant of which are described below. Other thanas described below, Airbus Group is not aware of any material governmental, legal or arbitration
proceedings (including any such proceedings which are pending or threatened), during a period
covering at least the previous twelve months which may have, or have had in the recent pastsignificant effects on Airbus Group N.V.’s or the Group’s financial position or profitability.
WTO
Although Airbus Group is not a party, Airbus Group is supporting the European Commission inlitigation before the WTO. Following its unilateral withdrawal from the 1992 EU-US Agreement on
Trade in Large Civil Aircraft, the US lodged a request on 6 October 2004 to initiate proceedings
before the WTO. On the same day, the EU launched a parallel WTO case against the US in
relation to its subsidies to Boeing. On 19 December 2014, the European Union requested WTO
consultations on the extension until the end of 2040 of subsidies originally granted by the State ofWashington 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.

22

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

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 notagree, 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 tonegotiations between the US and the EU. Unless a settlement, which is currently not underdiscussion, is reached between the parties, the litigation is expected to continue for several years.
Securities Litigation
Following the dismissal of charges brought by the French Autorité des marchés financiers foralleged breaches of market regulations and insider trading rules with respect primarily to the A380
delays announced in 2006, a French investigating judge decided in November 2013 to send thecase to trial (renvoi devant le tribunal correctionnel) against 7 current and former executives thatexercised their stock options in March 2006 as well as two former shareholders. On 3 October
2014 the criminal court suspended the case on the merits and decided to request a preliminary
ruling (question prioritaire de constitutionnalité) from the French Supreme Court on theconstitutionality of the French dual prosecution system (AMF and judicial proceedings). On 17
December 2014, the French Supreme Court agreed to transmit the constitutional challenge to theConseil Constitutionnel who are scheduled to make their ruling by the end of March 2015. Afterbeing directed by the criminal court to correct inaccuracies in the charges, the investigating
magistrate issued revised charge in January 2015. It is unlikely that the case will resume before
the second half of 2015.
GPT
Prompted by a whistleblower’s allegations, Airbus Group conducted internal audits and retainedPricewaterhouseCoopers (“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 underreview and based on the work it undertook, nothing came to PwC’s attention to suggest that
improper payments were made by GPT. In August 2012, the SFO announced that it had opened aformal criminal investigation into the matter. Airbus Group is cooperating fully with the authorities.
Eurofighter Austria
In March 2012, the German public prosecutor, following a request for assistance by the Austrian
public prosecutor, launched a criminal investigation into alleged bribery, tax evasion and breach oftrust by current and former employees of EADS Deutschland GmbH (renamed on 1 July 2014
Airbus Defence and Space GmbH) and Eurofighter Jagdflugzeug GmbH as well as by third parties
relating to the sale of Eurofighter aircraft to Austria in 2003. After having been informed on theinvestigation in 2012, Airbus Group retained 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 publicprosecutors in Germany. Airbus Group is cooperating fully with the authorities.

23

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

Other investigations
Following the publication of investigations by the Romanian authorities relating to the bordersurveillance project in Romania in mid-October 2014 Airbus Group confirms that Airbus Defence
and Space GmbH has been informed that also the German prosecution office investigates withrespect to potential irregularities in relation to this project, a project in Saudi Arabia and a project ofTesat-Spacecom GmbH & Co. KG. No legal entity of the Airbus Group is subject of any
accusations.
Public prosecutors in Greece and Germany launched investigations into a current employee andformer officers and employees of Atlas Elektronik GmbH, a joint company of ThyssenKrupp andAirbus Group, on suspicion of bribing foreign officials and tax evasion. The public prosecutor in
Germany has launched an administrative proceeding for alleged organisational and supervisory
shortfalls. The authorities in Greece have launched civil claims against Atlas Elektronik GmbH.
With the support of its shareholders, the company is cooperating fully with the authorities and in
consultation with the public prosecutor is assisting the further 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 to cease 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 this dispute and the outcome of the proceedings
cannot be fully assessed at this stage. The arbitration is not expected to be completed before theend of 2016.
In the course of another commercial dispute, the Group has received in the third quarter 2013 astatement of claim alleging liability for refunding 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 whichgoes back many years ago should be dismissed in principle. Options to resolve the dispute areunder review but eventually it may be decided in the course of the arbitration.
In July 2013, the Group became the subject of a commercial dispute following the expiry of apartnership study for winglet devices with a US supplier. The Group believes it has solid grounds
to legally object to the alleged breach of a commercial non-disclosure agreement. However, theoutcome and consequences of this dispute cannot be assessed at this stage.
13. Subsequent events
On 18 December 2014, Rheinmetall AG and Airbus Defence and Space have agreed on theconditions of the transfer of the A400M Loadmaster Control Contract from Rheinmetall to
Cassidian Airborne Solutions GmbH (CAS). This non material transaction involves the terminationof the service level agreement between the two companies and allows settling the claims between
the companies in relation to the A400M application software contract. The agreements relative tothis acquisition have become effective on 1 January 2015. The overall purchase price of 58.9 M €was paid on 2 January 2015.

24

26.02.2015

Airbus Group N.V.
Unaudited Condensed IFRS Consolidated Financial Information for the year
ended 31 December 2014

On 14 January 2015, Airbus Group and Safran have completed the first phase of the integration
process enabling Airbus Safran Launchers to become operational (see Note 3 “Acquisitions andother M&A transactions”).
They have engaged in the requisite consultation and approval procedures with competition
authorities, Arianespace and the two Group’s works councils. The new organisational structure
initially comprises 450 people joining Airbus Safran Launchers from Airbus Defence and Space,
Herakles and Snecma as part of phase one. This structure will be further developed and shalleventually bring together all Airbus Group and Safran assets relating to launchers and propulsion
systems in addition to associated personnel and shareholdings. The company’s head office is in
Issy-les-Moulineaux, near Paris.
On 21 January 2015 Airbus Group and Parter Capital Group AG signed a final share purchaseagreement to transfer 100% of the shares of Cassidian Belgium N.V. for a total consideration of
3.1 M € (see Note 3 “Acquisitions and other M&A transactions”).

25

26.02.2015