Airbus reports Half-Year (H1) 2019 results•

Commercial aircraft environment robust•

H1 financials mainly reflect A320 Family ramp-up and NEO transition•

Revenues € 30.9 billion; EBIT Adjusted € 2.5 billion•

EBIT (reported) € 2.1 billion; EPS (reported) € 1.54•

2019 guidance maintained

Amsterdam, 31 July 2019 – Airbus SE (stock exchange symbol: AIR) reported Half-Year (H1)2019 consolidated financial results(1) and maintained its guidance for the full-year.
“The half-year financial performance mainly reflects the ramp-up in production of A320
Family aircraft and transition to the more efficient NEO version, as well as further progresson the A350 financial performance,” said Airbus Chief Executive Officer Guillaume Faury.
“We continue to see good demand for our competitive product portfolio, including the new
A321XLR, as shown by the strong market endorsement at June’s Le Bourget airshow. Ouroperational focus is mainly on the A320neo Family ramp-up. The second half of the year interms of deliveries and in particular free cash flow continues to be challenging. In defenceand space, we signed the important contract amendment for the A400M programme.”
Gross commercial aircraft orders totalled 213 (H1 2018: 261 aircraft) with net orders of 88aircraft (H1 2018: 206 aircraft). The order book stood at 7,276 commercial aircraft as of 30
June 2019. Net helicopter orders of 123 units (H1 2018: 143 units) included 23 NH90s for
Spain and 11 H145s in the second quarter. Airbus Defence and Space’s order intake byvalue totalled € 4.2 billion, with second quarter bookings including the A400M Global Support
Step 2 contract with OCCAR and next generation geostationary Ka-band communications
satellites.
Consolidated revenues increased to € 30.9 billion (H1 2018: € 25.0 billion), mainly reflecting
higher commercial aircraft deliveries and favourable foreign exchange. At Airbus, a total of389 commercial aircraft were delivered (H1 2018: 303 aircraft), comprising 21 A220s, 294
A320 Family, 17 A330s, 53 A350s and 4 A380s. Airbus Helicopters delivered 143 units (H12018: 141 units) with stable revenues driven by programme phasing compensated by growthin services. Higher revenues at Airbus Defence and Space were supported by Military
Aircraft activities.

Page | 1Consolidated EBIT Adjusted – an alternative performance measure and key indicator
capturing the underlying business margin by excluding material charges or profits caused by
movements in provisions related to programmes, restructurings or foreign exchange impacts
as well as capital gains/losses from the disposal and acquisition of businesses – more thandoubled to € 2,529 million (H1 2018: € 1,162 million), driven by commercial aircraft activities atAirbus.
Airbus’ EBIT Adjusted increased to € 2,338 million (H1 2018: € 867 million), mainly reflecting
the A320 ramp-up and NEO premium, further progress on the A350 financial performanceand an improvement in foreign exchange rates in the second quarter.
On the A320 programme, NEO aircraft represented 234 out of the total 294 deliveries. Theramp-up in production of the Airbus Cabin Flex (ACF) version of the A321 remainschallenging. Given the recent commercial success of the A321 ACF and XLR asdemonstrated at Le Bourget, Airbus is studying different options to increase the share of theA321 in current A320 Family production capacity. On the A330 programme, the focus is on
the ramp-up of the NEO version to secure deliveries in the second half of 2019. A330neodeliveries totalled 13 in the half-year. Good progress was made on A350 recurring costconvergence and the programme is on track to reach the breakeven target for the year.
Meanwhile, progress was made in preparing the winding down of the A380 programme andsecuring in-service support for the next decades.
Airbus Helicopters’ EBIT Adjusted totalled € 125 million (H1 2018: € 135 million), reflecting aless favourable delivery mix partially compensated by an increased contribution fromservices.
EBIT Adjusted at Airbus Defence and Space totalled € 233 million (H1 2018: € 309 million),
mainly reflecting efforts to support ongoing campaigns.
Seven A400M military transport aircraft were delivered in the half-year, bringing thein-service fleet to 81 as of 30 June. The A400M contract amendment was signed withOCCAR during the second quarter, concluding the discussions on the programme’s GlobalRebaselining. With this contract amendment, an agreement has been reached on a newcapabilities development plan, a new production delivery schedule, a new retrofit delivery

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schedule and new financial terms. The anticipated impact of the Global Rebaselining wasreflected in the 2018 results.
Consolidated self-financed R&D expenses totalled € 1,423 million (H1 2018: € 1,403 million).
Consolidated EBIT (reported) amounted to € 2,093 million (H1 2018: € 1,120 million),including Adjustments totalling a net € -436 million. These Adjustments mainly comprised:•A negative € -208 million related to the prolonged suspension of defence export licences to
Saudi Arabia by the German government, of which € -18 million were booked in Q2 2019;•A negative € -136 million related to A380 programme cost, of which € -75 million was booked
in Q2 2019, as part of Airbus’ continuous assessment of assets recoverability and thequarterly review of onerous contract provision assumptions;•A total of € -90 million of other costs, including compliance.

Consolidated reported earnings per share of € 1.54 (H1 2018: € 0.64) included a negative
impact from the financial result, mainly driven by losses on foreign exchange hedges recognisedin the context of the prolonged suspension of defence export licences. The financial result was€ -215 million (H1 2018: € -303 million). The effective tax rate included the impact from charges
related to the prolonged suspension of defence export licences, as well as the reassessment oftax assets and liabilities. Consolidated net income(2) was € 1,197 million (H1 2018: € 496million).
Consolidated free cash flow before M&A and customer financing of € -3,981 million(H1 2018: € -3,968 million) mainly reflected the working capital build supporting deliveries inthe second half of 2019. Consolidated free cash flow was € -4,116 million (H1 2018: € -3,797million).
The consolidated net cash position was € 6.6 billion on 30 June 2019 (year-end 2018: € 13.3billion) after the 2018 dividend payment of € 1.3 billion in the second quarter. The gross cash
position on 30 June was € 17.8 billion (year-end 2018: € 22.2 billion).
Following a review of demographic and underlying assumptions, the pension provision increasedin the second quarter. This reflected the global decrease in the discount rate as well as thechange in management’s estimates for the valuation of employee benefits in Germany.

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In response to developments in the WTO dispute, the United States Trade Representative(USTR) in April published a list of EU products upon which the USTR intends to apply tariffs,
which included new aircraft and helicopters as well as major components for aircraft
manufacturing in the US. If the USTR decides to impose tariffs on Airbus products and otherproducts from the EU, this could significantly affect the delivery of new Airbus aircraft andhelicopters to the US market and have a negative effect on Airbus’ financial condition andresults of operations. The potential decision of the EU to impose tariffs on US products could
come at a later stage. Airbus continues to support an outcome through a negotiatedsolution(3).
OutlookAs the basis for its 2019 guidance, the Company expects the world economy and air traffic togrow in line with prevailing independent forecasts, which assume no major disruptions.
The 2019 earnings and Free Cash Flow guidance is before M&A.
•Airbus targets 880 to 890 commercial aircraft deliveries in 2019.

•On that basis:
Airbus expects to deliver an increase in EBIT Adjusted of approximately +15% compared
to 2018 and FCF before M&A and Customer Financing of approximately € 4 billion.

About Airbus
Airbus is a global leader in aeronautics, space and related services. In 2018, it generated revenues of € 64 billion
and employed a workforce of around 134,000. Airbus offers the most comprehensive range of passenger
airliners. Airbus is also a European leader providing tanker, combat, transport and mission aircraft, as well as oneof the world’s leading space companies. In helicopters, Airbus provides the most efficient civil and militaryrotorcraft solutions worldwide.
Airbus Investor Relations contacts:
Thorsten FISCHER
tel. +33 5 67 19 02 64
Mohamed DENDEN
tel. +33 5 82 05 30 53
Nicolas CHRETIEN
tel. +33 5 67 19 02 07

thorsten.t.fischer@airbus.com
mohamed.denden@airbus.com
nicolas.n.chretien@airbus.com

Note to editors: Live Webcast of the Analyst Conference Call
At 08:15 CEST on 31 July, you can listen to the H1 2019 Results Analyst Conference Call with Chief Executive Officer
Guillaume Faury and Chief Financial Officer Dominik Asam via the Airbus website. The analyst call presentation canalso 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 the analyst presentation.

Page | 4

Airbus Consolidated – Half-Year (H1) Results 2019
(Amounts in Euro)
Airbus Consolidated

H1 2019

H1 2018

ChangeRevenues, in millions

30,86624,970

+24%

4,085

4,041+1%

EBIT Adjusted, in millions

2,529

1,162+118%

EBIT (reported), in millions

2,093

1,120+87%

Research & Development expenses,in millions

1,423

1,403+1%

Net Income(2), in millions

1,197

496+141%

Earnings Per Share (EPS)

1.54

0.64

+141%

Free Cash Flow (FCF), in millions-4,116-3,797--3,998-4,069--3,981-3,968-

Airbus Consolidated

30 June2019

31 Dec2018

ChangeNet Cash position, in millions

6,565

13,281-51%

Employees

136,343

133,671+2%

thereof defence, in millions

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

For footnotes please refer to page 10.

Page | 5By BusinessSegment(Amounts in millions ofEuro)

AirbusAirbus Helicopters
Airbus Defence andSpaceTransversal &Eliminations
Total
By Business
Segment

Revenues
H1201924,043

H1201818,5462,371

EBIT (reported)

+30%

H1
2019
2,151

H1
2018
773

2,388

-1%

124

114

+9%

5,015

4,652

+8%

-15

382--563

-616

--167

-149-

30,86624,970

+24%

2,093

1,120+87%

ChangeH1
2019

H12018ChangeAirbus

2,338

867

+170%

Airbus Helicopters
Airbus Defence andSpaceTransversal &Eliminations

125

135-7%

233

309

-25%

-167

-149-

2,529

1,162+118%

By Business
Segment

Airbus, in units
Airbus Helicopters,in units
Airbus Defence andSpace, in millions ofEuro+178%

EBIT Adjusted(Amounts in millions ofEuro)

Total

ChangeOrder Intake (net)

Order Book

H12019H12018Change30 June2019

30 June
2018

Change

88

206

-57%

7,276

7,168

+2%

123

143

-14%

697

694

0%

4,220

3,184

+33%

N/A

N/A

N/A

For footnotes please refer to page 10.

Page | 6Airbus Consolidated – Second Quarter (Q2) Results 2019
(Amounts in Euro)
Airbus Consolidated

Q2 2019

Q2 2018

ChangeRevenues, in millions

18,317

14,851+23%

EBIT Adjusted, in millions

1,980

1,148+72%

EBIT (reported), in millions

1,912921+108%

Net Income(2), in millions

1,157

213+443%

Earnings Per Share (EPS)

1.49

0.27+452%

By Business
Segment

Revenues

EBIT (reported)(Amounts in millions ofEuro)

Q2
2019

Q2
2018

Change

Q2
2019

Q2
2018

ChangeAirbus

14,346

11,324

+27%

1,759

775

+127%

Airbus Helicopters
Airbus Defence andSpaceTransversal &Eliminations

1,364

1,427

-4%

115

124

-7%

2,903

2,435

+19%

102

117

-13%

-296-335--64-95-Total

18,317

14,851

+23%

1,912

921+108%

By Business Segment

EBIT Adjusted(Amounts in millions of Euro)

Q22019Q22018ChangeAirbus

1,802

908

+98%

Airbus Helicopters

110138-20%

Airbus Defence and Space

132

197

-33%

Transversal & Eliminations

-64

-95

-Total

1,980

1,148+72%

For footnotes please refer to page 10.

Page | 7

Q2 2019 revenues increased by 23%, mainly driven by higher commercial aircraft deliveries,
favourable foreign exchange and higher revenues at Airbus Defence and Space.
Q2 2019 EBIT Adjusted increased by 72%, mainly driven by the A320 ramp-up andtransition, progress on the A350 XWB programme, and favourable foreign exchange.
Q2 2019 EBIT (reported) increased by 108%. It reflected net Adjustments of € -68 million
booked in the quarter. Net Adjustments in the second quarter of 2018 amounted to € -227
million.
Q2 2019 Net Income increased by 443%, mainly driven by the higher EBIT, the positive
impact from the revaluation of financial instruments and the lower effective tax rate.
EBIT (reported) / EBIT Adjusted Reconciliation
The table below reconciles EBIT (reported) with EBIT Adjusted.
Airbus Consolidated(Amounts in millions of Euro)EBIT (reported)

H1 2019
2,093

thereof:
Defence export ban-208

A380 programme cost

-136

Others$ PDP mismatch/Balance Sheet
revaluation
EBIT Adjusted-90-2
2,529

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Glossary
KPI

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

Adjustment

Adjustment, 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

The Company uses an alternative performance measure, EBIT Adjusted, as a key
indicator capturing the underlying business margin by excluding material charges or profits
caused by movements in provisions related to programmes, restructurings or foreignexchange impacts as well as capital gains/losses from the disposal and acquisition ofbusinesses.

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 the Analyst presentation.

Gross cash

The Company defines its consolidated gross cash position as the sum of (i) cash and cash

positionequivalents and (ii) securities (all as recorded in the consolidated statement of financialposition).

Net cash

For the definition of the alternative performance measure net cash position, seeposition

Registration Document, MD&A section 2.1.6.

FCF

For the definition of the alternative performance measure free cash flow, see Registration
Document, MD&A section 2.1.6.1. 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 2.1.6.1 adjusted for net proceeds from disposals andacquisitions. It is an alternative performance measure and key indicator that reflects freecash flow excluding those cash flows resulting from acquisitions and disposals 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, especially when there is higher uncertainty aroundcustomer financing activities.

Page | 9Footnotes:
1)

H1 2019 figures include the A220 programme, which was consolidated into Airbus on 1 July
2018.

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.

3)

For more details on the WTO dispute, please refer to the Financial Statements and, inparticular, note 23, “Litigation and Claims” of the Unaudited Condensed Interim Financial
Information of Airbus SE for the six-month period ended 30 June 2019 available on Airbus’
website (www.airbus.com).

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-lookingstatements. 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 the2018 Airbus SE “Registration Document” dated 29 July 2019, 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.

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