Airbus reports First Quarter (Q1) 2018 results, confirms guidanceBacklog and commercial momentum support ramp-up plansQ1 financials reflect engine and aircraft delivery phasing



Revenues € 10 billion; EBIT Adjusted € 14 million



EBIT (reported) € 199 million; EPS (reported) € 0.37

2018 guidance confirmed

Amsterdam, 27 April 2018 – Airbus SE (stock exchange symbol: AIR) reported First Quarter2018 consolidated financial results and confirmed its guidance for the full year.

“The first quarter performance reflects the shortage of A320neo engines and back-loaded
aircraft deliveries as we indicated in the full-year disclosure. This is clearly shown in thefinancials,” said Airbus Chief Executive Officer Tom Enders. “It’s a challenging situation for
all but based on the confidence expressed by the engine makers and their ability to deliveron commitments, we can confirm our full-year outlook. This still leaves us with plenty to do
this year to reach the target of around 800 commercial aircraft deliveries.”

A total of 45 net commercial aircraft orders were received (Q1 2017: six aircraft) with grossorders of 68 aircraft including 20 A380s for Emirates Airline. The backlog by units totalled
7,189 commercial aircraft as of 31 March, 2018. Net helicopter orders increased to 104 units(Q1 2017: 60 units), including 10 H160s and 51 additional Lakota UH-72As for the US Army
to bring the total orders in the programme above 450 helicopters. Airbus Defence andSpace’s order intake included an additional A330 MRTT following Belgium’s participation in
the multinational European NATO tanker fleet.
Consolidated revenues totalled € 10.1 billion (Q1 2017: € 11.4 billion(1)), mainly reflecting
lower commercial aircraft and helicopter deliveries. Airbus deliveries totalled 121 commercial
aircraft (Q1 2017: 136 aircraft), comprising 95 A320 Family, 8 A330s, 17 A350 XWBs andone A380. Airbus Helicopters delivered 52 units (Q1 2017: 78 units) with its revenues also
reflecting the deconsolidation of services business Vector Aerospace in late 2017. Revenues

at Airbus Defence and Space were slightly lower, reflecting the perimeter change from thesale of Defence Electronics in February 2017.
Consolidated EBIT Adjusted – an alternative performance measure and key indicator
capturing the underlying business margin by excluding material charges or profits caused bymovements in provisions related to programmes, restructuring or foreign exchange impacts
as well as capital gains/losses from the disposal and acquisition of businesses – totalled€ 14 million (Q1 2017: € -19 million(1)).
Airbus’ EBIT Adjusted of € -41 million (Q1 2017: € -103 million(1)) mainly reflected the backloaded aircraft delivery phasing, compensated by A350 improvements in both unit cost andprice.
On the A320neo programme, new engines with a knife edge seal fix have started to bereceived from supplier Pratt & Whitney and GTF-powered aircraft deliveries have resumed.
Airbus is also working closely with the other A320neo engine supplier, CFM International,
which is working to catch-up on the production delays it encountered. Given the significant
demand for the A320neo and the robust backlog, Airbus has started a feasibility study withthe supply chain to investigate higher production rates. Airbus and its engine manufacturers
are committed to delivering in line with the full year overall delivery objective of around 800
commercial aircraft, which leaves a lot to do in the second half of 2018. On the A330
programme, the transition to the NEO version continues with the first delivery expected thissummer. Based on the current programme assessment, Airbus has decided to reduce A330
deliveries to around 50 per year in 2019. The A350 programme continues to make good
progress on the ramp-up to the targeted monthly rate of 10 aircraft by year-end. The focus
remains on further recurring cost convergence. Deliveries in the first quarter included the first
A350-1000 while the first flight of the A350-900 ULR (Ultra Long Range) version took placein April.
Airbus Helicopters’ EBIT Adjusted was stable at € -3 million (Q1 2017: € -6 million(1)),
supported by the Division’s transformation efforts compensating market softness.
Airbus Defence and Space’s EBIT Adjusted was broadly stable at € 112 million (Q1 2017:€ 118 million(1)).

Page 2 of 9

Four A400M aircraft were delivered in the first quarter. The A400M launch customer
programme is being baselined to eight aircraft per year from 2020. The Company is focusedon securing export orders, achieving military capabilities, the new delivery plan and retrofit of
in-service aircraft as agreed with the Nations. Following the Declaration of Intent reachedwith customers in February 2018, finalising the contract amendment and delivering in linewith commitments are key priorities for this year.
Consolidated self-financed R&D expenses totalled € 616 million (Q1 2017: € 548 million).
Consolidated EBIT (reported) was € 199 million (Q1 2017: € 575 million(1)) including
Adjustments totalling a net positive € 185 million. These comprised:A net capital gain of € 159 million from the divestment of Plant Holdings, Inc., which held theAirbus DS Communications Inc. business;A positive impact of € 46 million from the dollar pre-delivery payment mismatch and balance
sheet revaluation;€ 20 million of other costs including compliance and M&A costs.

Consolidated net income(2) totalled € 283 million (Q1 2017: € 409 million(1)) with earnings per
share of € 0.37 (Q1 2017: € 0.53(1)) also including a positive impact mainly from the revaluationof certain equity investments. The finance result was € 39 million (Q1 2017: € -206 million).

Consolidated free cash flow before M&A and customer financing amounted to € -3,839
million (Q1 2017: € -1,269 million), reflecting the back-loaded delivery profile and continuing
production ramp-up. Consolidated free cash flow of € -3,656 million (Q1 2017: € -1,116million) included net proceeds of € 191 million from the sale of the Airbus DS Communications
Inc. business.
Cash flow for aircraft financing was very limited in the quarter at € -7 million. Export Credit
Agency cover resumed in the first quarter and Airbus anticipates ECA cover for a limited
number of transactions in 2018. The appetite for commercial financing remains high.
The consolidated net cash position on 31 March 2018 was € 9.8 billion (year-end 2017: € 13.4billion) with a gross cash position of € 20.9 billion (year-end 2017: € 24.6 billion).

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Outlook
As the basis for its 2018 guidance, the Company expects the world economy and air traffic togrow in line with prevailing independent forecasts, which assume no major disruptions.
The 2018 earnings and Free Cash Flow guidance is based on a constant perimeter, before M&A.
Airbus expects to deliver around 800 commercial aircraft, which depends on engine
manufacturers meeting commitments.

Based on around 800 deliveries:
Compared to 2017 EBIT Adjusted of € 4.25 billion as reported, pre-IFRS 15, the Company
expects, before M&A:
 An increase in EBIT Adjusted of approximately 20 percent.
 IFRS 15 is expected to further increase EBIT Adjusted by an estimated € 0.1bn.
 Therefore, the Company expects to report EBIT Adjusted of approximately € 5.2
billion prepared under IFRS 15 in 2018.

2017 Free Cash Flow before M&A and Customer Financing was € 2,949 million. FreeCash Flow is expected to be at a similar level as 2017, before M&A and Customer
Financing.

About Airbus
Airbus is a global leader in aeronautics, space and related services. In 2017 it generated revenues of € 59 billion
restated for IFRS 15 and employed a workforce of around 129,000. Airbus offers the most comprehensive rangeof passenger airliners from 100 to more than 600 seats. Airbus is also a European leader providing tanker,
combat, transport and mission aircraft, as well as one of the world’s leading space companies. In helicopters,Airbus provides the most efficient civil and military rotorcraft solutions worldwide.

Airbus Investor Relations contacts:
Julie KITCHER

tel. +33 5 82 05 53 01

julie.kitcher@airbus.com

Mohamed DENDEN

tel. +33 5 82 05 30 53

mohamed.denden@airbus.com

Note to editors: Live Webcast of the Analyst Conference CallAt 08:00 CEST today, you can listen to the First Quarter 2018 Results Analyst Conference Call with Chief Financial
Officer Harald Wilhelm via www.airbus.com. The analyst call presentation can also be found on the company website. A
recording will be made available in due course. For a reconciliation of Airbus’ KPIs to “reported IFRS” please refer to theanalyst presentation.

Page 4 of 9

Airbus Consolidated – First Quarter (Q1) Results 2018
(Amounts in Euro)

Airbus Consolidated

Q1 2018

Q1 2017

ChangeRevenues, in millions

10,11911,442(1)

-12%

1,771

(1)

-10%

thereof defence, in millions
EBIT Adjusted, in millions

14

1,963
-19

(1)

-(1)

-65%

EBIT (reported), in millions

199

575

Research & Development expenses,in millions

616

548

Net Income(2), in millions

283

409(1)-31%

Earnings Per Share (EPS)

0.37

0.53

(1)

-30%

Free Cash Flow (FCF), in millions-3,656-1,116--3,846-1,599--3,839-1,269-31 March2018

31 Dec2017

ChangeNet Cash position, in millions

9,769

13,390(1)-27%

Employees

129,208

129,4420%Free Cash Flow
before M&A, in millions
Free Cash Flow before M&A
and Customer Financing, in millions

Airbus Consolidated

For footnotes please refer to page 9.

Page 5 of 9+12%

By Business
Segment

Revenues

EBIT (reported)(Amounts in millions ofEuro)

Q1
2018

Q1
2017(1)

ChangeQ12018

Q1
2017(1)

ChangeAirbus

7,222

8,166

-12%

-2-48-961

1,176

-18%

-10-6-

2,217

2,340-5%

265

657-60%

-281

-240

--54-28-

10,11911,442

-12%

199

575

-65%

Airbus Helicopters
Airbus Defence andSpaceTransversal &Eliminations
Total

By Business
Segment

EBIT Adjusted(Amounts in millions ofEuro)

Q1
2018

Q1
2017(1)

ChangeAirbus-41-103-

Airbus Helicopters
Airbus Defence andSpaceTransversal &Eliminations-3-6-112118-5%-54-28

-

14-19

-

Total

By Business
Segment

Airbus, in units
Airbus Helicopters,in units
Airbus Helicopters,in millions of Euro
Airbus Defence andSpace, in millions ofEuro

Order Intake (net)
Q1
2018

Q12017

Change31 March2018

31 March2017

Change456+650%

7,189

6,744

+7%

10460

+73%

744

748

-1%

1,288

1,417

-9%

13,176

12,921(1)

+2%

1,581

1,521

+4%

37,30339,159(1)-5%

For footnotes please refer to page 9.

Page 6 of 9

Order Book

EBIT (reported) / EBIT Adjusted Reconciliation
The table below reconciles EBIT (reported) with EBIT Adjusted.

Airbus Consolidated
EBIT (reported), in millions of Euro
thereof:
Airbus DS Communications Inc.
net capital gain, in millions of Euro$ PDP mismatch/Balance Sheet
revaluation, in millions of Euro
Other costs including complianceand M&A costs, in millions of EuroEBIT Adjusted, in millions of EuroPage 7 of 9Q1 2018
199

159
46
-20
14

Glossary
KPI
EBIT

DEFINITION
The Company continues to use the term EBIT (Earnings before interest and taxes). It is
identical to Profit before finance cost and income taxes as defined by IFRS Rules.

Adjustments

Adjustments, an alternative performance measure, is a term used by the Company which
includes material charges or profits caused by movements in provisions related toprogrammes, restructuring or foreign exchange impacts as well as capital gains/losses fromthe disposal and acquisition of businesses.

EBIT Adjusted

EBIT Adjusted – an alternative performance measure and key indicator capturing theunderlying business margin by excluding material charges or profits caused by movements
in provisions related to programmes, restructuring or foreign exchange impacts as well as
capital gains/losses from the disposal and acquisition of businesses.

EPS Adjusted

EPS Adjusted is an alternative performance measure of basic earnings per share asreported whereby the net income as the numerator does include Adjustments. For
reconciliation, see slide 19 of the Analyst presentation.

Gross cash
position

The Company defines its consolidated gross cash position as the sum of (i) cash and cash
equivalents and (ii) securities (as all recorded in the consolidated statement of financialposition).

Net cash

For definition of the alternative performance measure net cash position, see Registration

position

Document, MD&A section 2.1.3.

FCF

For the definition of the alternative performance measure free cash flow, see Registration
Document, MD&A section 2.1.3. It is a key indicator which allows the Company to measure
the amount of cash flow generated from operations after cash used in investing activities.

FCF before M&AFree cash flow before mergers and acquisitions refers to free cash flow as defined in theRegistration Document, MD&A section 2.1.3 adjusted for net proceeds from disposals andacquisitions. It is an alternative performance measure and indicator that is important inorder to measure FCF excluding those cash flows from the disposal and acquisition ofbusinesses.

FCF before M&AFree cash flow before M&A and customer financing refers to free cash flow before mergers

and customer

and acquisitions adjusted for cash flow related to aircraft financing activities. It is anfinancing

alternative performance measure and indicator that may be used from time to time by theCompany in its financial guidance, esp. when there is higher uncertainty around customer
financing activities, such as during the suspension of ECA financing support.

Page 8 of 9Footnotes:1)

Where applicable, 2017 figures have been restated to reflect the adoption of the IFRS 15
accounting standard and new segment reporting as of 1 January, 2018. The new segment
reporting reflects the merger of Headquarters into Airbus. Where applicable, ‘Airbus’ refers tocommercial aircraft and the integrated functions while ‘Airbus Consolidated’ or ‘the Company’refers to Airbus SE.

2)

Airbus SE continues to use the term Net Income. It is identical to Profit for the period attributable
to equity owners of the parent as defined by IFRS Rules.

Safe Harbour Statement:This press release includes forward-looking statements. Words such as “anticipates”, “believes”, “estimates”,“expects”, “intends”, “plans”, “projects”, “may” and similar expressions are used to identify these forward-looking
statements. Examples of forward-looking statements include statements made about strategy, ramp-up anddelivery schedules, introduction of new products and services and market expectations, as well as statements
regarding future performance and outlook.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events andcircumstances and there are many factors that could cause actual results and developments to differ materiallyfrom those expressed or implied by these forward-looking statements.
These factors include but are not limited to:

Changes in general economic, political or market conditions, including the cyclical nature of some of Airbus’businesses;
Significant disruptions in air travel (including as a result of terrorist attacks);
Currency exchange rate fluctuations, in particular between the Euro and the U.S. dollar;
The successful execution of internal performance plans, including cost reduction and productivity efforts;
Product performance risks, as well as programme development and management risks;
Customer, supplier and subcontractor performance or contract negotiations, including financing issues;Competition and consolidation in the aerospace and defence industry;
Significant collective bargaining labour disputes;
The outcome of political and legal processes including the availability of government financing for certain
programmes and the size of defence and space procurement budgets;
Research and development costs in connection with new products;
Legal, financial and governmental risks related to international transactions;
Legal and investigatory proceedings and other economic, political and technological risks and uncertainties.

As a result, Airbus SE’s actual results may differ materially from the plans, goals and expectations set forth insuch forward-looking statements.
For a discussion of factors that could cause future results to differ from such forward-looking statements, see theAirbus SE “Registration Document” dated 28 March 2018, including the Risk Factors section.
Any forward-looking statement contained in this press release speaks as of the date of this press release. Airbus
SE undertakes no obligation to publicly revise or update any forward-looking statements in light of new
information, future events or otherwise.
Rounding
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may notprecisely reflect the absolute figures.
IFRS 15
The Company has adopted the IFRS 15 standard as of 1 January 2018. 2017 figures are pro-forma, amended
with IFRS 15 restatement and new segment reporting.

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