Airbus Annual Report
Overview 2020

Building asustainable
future2

Pioneering sustainableaerospace for a safeand united world2020 was a challenging year for our industry, stakeholders,and broader society.
At Airbus, we navigated the year by asking ourselves how‘we pioneer sustainable aerospace for a safe and united world’.
The year was a test of our resilience – of our operations andour values – and we are proud to have withstood this test,
by remaining agile and focused on our purpose.
In this report, you’ll learn how we responded to:
Support our stakeholders and industry
Adapt our business and plans
Innovate for a sustainable future, andLead our industry in the decades ahead
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Key events of 2020
Chairman’s message
CEO interview
Resilience
9 Support
10 Adapt
11 Innovate
12 LeadSustainability
Airbus at a glance
16 Airbus
17 Airbus Helicopters
18 Airbus Defence and Space
CFO interview
Share information

Where applicable, ‘Airbus’ refers to commercial aircraft and the integrated functions while‘the Company’ refers to Airbus SE together with its subsidiaries.

Front Cover

Pictured is an image of a ‘blended-wing body’ ZEROehybrid-hydrogen concept aircraft, unveiled in 2020 aspart of the Company’s ambition to develop zero-emissioncommercial aircraft.
This pageIn 2020, Airbus Defence and Space was selected by
the European Space Agency to be the prime contractor
for the new Land Surface Temperature Monitoring (LSTM)
mission. LSTM is part of Copernicus, the European
Union’s Earth observation programme for global monitoring.

Airbus / Annual Report – Overview 2020

Overview / Key events of 20203

Key events of2020

2020 was a year when the Company reacted quickly and took
measures to navigate the COVID-19 crisis. It still achieved somesignificant operational and commercial milestones and continued
to enhance its portfolio and progress on sustainability topics.

Leading in reconfigurable satellites

Wide-ranging response to the COVID-19 crisis

The Company deployed its resources and expertise to
assist the global fight against the pandemic. This included
the use of commercial and military aircraft to transportvital products such as face masks and the production of
specialist protective equipment. Airbus also supported
aircraft operators with the logistical challengeof transporting vaccines and changing cargo demand.
Great lengths were taken to ensure business continuity,
starting with the adaptation of working facilities andpractices for the safety of employees and customers.
Initiatives such as the ‘e-delivery’ process helped operators
to accept fixed- and rotary-wing aircraft while complying
with COVID-19 health and safety measures. The Company
adapted its commercial aircraft activities and strengthened
its liquidity position to safeguard its future.

Airbus Defence and Space’s next-generation OneSat
telecommunication satellites saw continued successduring the year. More contracts were announced, showing
the Company’s lead in this important market sector. By
adjusting its coverage area, capacity and frequency while
in-orbit, these satellites can meet evolving mission scenarios.

2020 deliveries include first US-built A220

The year’s commercial aircraft delivery tally of 566
included a number of important milestones. The first A220
assembled in the US was delivered from Mobile, Alabama,
while deliveries of the A330-800 version of the A330neo
widebody airliner started following certification. The deliveryof the 1,500th ever A330 Family aircraft also took place.

Airbus / Annual Report – Overview 2020

Overview / Key events of 2020

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More success in military aircraft

A contract was signed to supply 38 new Eurofighter aircraft
for the German Air Force, securing production until 2030
for the strategic pan-European programme. The Tranche 4
Eurofighter is the most modern European-built combat
aircraft and its technical capabilities will allow full integration
into the key Future Combat Air System programme.

Key new helicopters certified

Development of A321XLR progresses

The A321XLR’s industrialisation and related parts
production gathered pace across Airbus sites and thewider supply chain. Major component assembly of thefirst forward fuselage, centre and rear fuselage sections
and the wings is due to begin in 2021. The fuel-efficient
A321XLR delivers an unprecedented single-aisle airliner
range of up to 4,700 nautical miles.

Two important helicopters were certified by the European
Union regulator, further increasing the competitivenessand capability of the product line. The multi-role twin
engine H160 is suitable for a wide range of missions and isalso one of the most environmentally friendly helicopters in
its class. The five-bladed light twin-engined H145 offers
operators an increased payload compared to the previous
version. The H145 model was also certified by US
authorities.

Further steps towards decarbonising flight

The Company prioritised research into carbon-neutral
technologies to move towards more sustainable air travel.
With the ambition to develop the world’s first zero-emissioncommercial aircraft by 2035, ZEROe concept aircraft wererevealed. A variety of hybrid-electric and hydrogentechnology options are now being explored together withother focus areas like sustainable aviation fuels.

Airbus / Annual Report – Overview 2020

Overview / Chairman’s message

5

Resilienceand adaptability“In such a testing year,
Airbus’ broad portfolio
provided some
protection.”

activities. These measures were designed to ensure
Airbus could sustain a prolonged downturn and still
be well positioned to capture the market recovery.
The actions taken were wide-ranging and proved tobe the right ones to help to stem the cash outflow
in the second half of the year.
Aside from COVID-19, there were other geopolitical
impediments to overcome, including tariffs related
to a World Trade Organization dispute and Brexitrelated uncertainties. Both these topics were closely
monitored by the Board and the necessary mitigation
actions by management were supported.

Dear shareholders, Dear stakeholders,
2020 was a testing year dominated by COVID-19.
The pandemic reached nearly every nation on Earth,exacerbated divides in society and hit alreadyvulnerable people the hardest. It also raised hugechallenges for business and political leaders andparticularly those people working on the front line,
such as in hospitals, schools and factories.
René Obermann
Chairman
In his first annual message since becoming
Chairman in April 2020, René Obermann
outlines the Board of Directors’ key priorities
and activities during the year. He also discusses
the 2021 Annual General Meeting.

For the whole aviation sector it was an extremely
challenging year, as it was for Airbus and its highlycommitted and qualified people. In a matter ofweeks we were confronted with potentially serious
implications on the business model and needed toadapt to this unprecedented situation. The Board
was impressed by how quickly management moved
to safeguard the Company.
Starting with ensuring the safety of employees,
the Company then bolstered its liquidity, adjusted
production rates to an appropriate level, contained
spending and resized the commercial aircraft“The Board was
impressed by how
quickly management
moved to safeguard
the Company.”

During the crisis it became even clearer how
important a close dialogue is with governments.
We truly appreciate the progress made and support
they gave for the industry’s whole ecosystem, fromthe partial unemployment schemes through toinvestment in research and technology.
In such a testing year, Airbus’ broad portfolio
provided some protection. While the commercial
aircraft activities were significantly impacted by the
pandemic, Airbus Defence and Space and Airbus
Helicopters provided support.
Commercial aircraft deliveries declined, although
the final tally was broadly in line with the revised
production plan. Airbus Helicopters’ earnings werebolstered by its governmental-related activities while
Airbus Defence and Space booked some importantorders, including the purchase of Eurofighter jets byGermany and new generation telecommunications
satellites.

Airbus / Annual Report – Overview 2020

Overview / Chairman’s message

Despite the crisis, your Company never lost sightof its ambitions and the important programmesthat will be crucial to securing its future, including
zero-emission technologies. Going forward, Airbus
will play a leading role in the most importanttransformation aviation has ever seen towards
a sustainable industry sector.
It is both a privilege and honour for me to serve
as Chairman of the Board of Airbus and I am truly
grateful for the support my predecessor and industry
expert Denis Ranque gave me in assuming this role.
The crisis had just begun when this transition
happened and I am particularly glad to work with
Board colleagues who have such high levels of
experience and dedication to help the Company
navigate through these challenging times. The
necessity of moving mostly to virtual meetings
did not hamper the Board’s decision making.
Unfortunately, site visits weren’t possible due tothe travel restrictions.
The health situation in the Netherlands meant thatthe 2020 AGM had to be scaled back significantly
although the strong engagement of shareholders
was evident in the high number of votes by proxy.
Two new non-executive directors were appointed to
the Board for the standard term of three years. Mark
Dunkerley and Stephan Gemkow were carefully
selected for their expertise in aviation and finance.
The Board Committees had a busy year. Notably,
the Audit Committee supported the financial andoperational measures the Company took to adapt
to the pandemic. The Remuneration, Nomination
and Governance Committee addressed a number ofimportant topics including the executive remuneration
structure and succession planning.

6

Sustainability is now deeply ingrained in the Company’s
purpose and is truly becoming part of its DNA.
During 2020, the Ethics and Compliance Committee
had its remit extended to include Sustainability andbecame the Ethics, Compliance and Sustainability(EC&S) Committee. There is now a dedicatedSustainability and Environment organisation within
the Company and the sustainability agenda is also
reinforced by influencing executives’ variable
remuneration. The EC&S Committee also oversaw
the actions taken to comply with the terms of theagreements reached with the French, UK and US
authorities at the beginning of 2020, resolving theirinvestigations into historic compliance cases.
Given the continuation of the crisis, preserving theCompany’s liquidity and financial strength is key andthis is why we hope for your understanding that there
is no dividend proposed for 2020. We kindly ask you
as shareholders for your continued support in thisvolatile environment. In line with the principle ofstaggered Board appointments, I will stand for
re-election as a non-executive director at the 2021
AGM, along with my colleagues Victor Chu,
Jean-Pierre Clamadieu and Amparo Moraleda.
It remains for me to thank the entire team at Airbus
for their continued dedication, especially those mostaffected by the crisis. On behalf of the Board, I’d also
like to underline our support to the management
team, who performed an outstanding job in steering
Airbus through this historic crisis in 2020.

“Sustainability is now deeply ingrainedin the Company’s purpose and is truly
becoming part of its DNA.”

Board of Directors
As of 1 January 2021

René Obermann
Chairman of the Boardof Directors, Airbus SE

Guillaume Faury
Chief Executive Officer,
Airbus SE

Victor Chu

Jean-Pierre
Clamadieu
Chairman of Ethics,
Compliance andSustainability
Committee

Ralph D. Crosby, Jr.

Lord Paul Drayson

Mark Dunkerley

Stephan Gemkow

Catherine
Guillouard
Chair of Audit
Committee

Amparo Moraleda
Chair of Remuneration,
Nomination and
GovernanceCommittee

Claudia Nemat

Carlos Tavares

René Obermann
Chairman of the Board

Audit Committee Remuneration, Nomination and Governance Committee
Ethics, Compliance and Sustainability Committee

Airbus / Annual Report – Overview 2020

Overview / CEO interview

7

Leadingenvironment. Through some innovative initiatives like‘e-deliveries’ our teams could safely navigate healthand travel restrictions and enable customers to takedelivery of their aircraft. Even though the order intake
fell, the backlog remained above 7,000 aircraft at
year-end.

throughchallenging times

Guillaume Faury
Chief Executive Officer
Guillaume Faury discusses the key steps taken
during 2020 to navigate the challenge of the
COVID-19 pandemic. He outlines the operationaland financial performance and explains how
the Company is progressing with its
sustainability strategy.

Q. What are your key takeaways from 2020?
Early in the year, COVID-19 transformed ourbusiness environment overnight. The story of 2020
swiftly became one of resilience and adapting tolarge-scale change, with the first priority being thesafety of employees under stricter sanitary conditions.

In Helicopters, deliveries included the first five-bladed
H145 following certification during the year. That wasan important milestone, as was European certification
for the highly capable H160 which is due to enter
service during 2021. The strong earnings performance
was driven by governmental activities and reliable
programme execution. Defence and Space saw astrong upturn in order intake, including important
Eurofighter business and telecommunication satellite
contracts. Despite the pandemic’s challenges, allscheduled A400M deliveries were achieved andprogress continued on the aircraft’s capabilities.

In commercial aviation, we changed the size of ourbusiness to reflect the new reality facing the industry,
with a 40% reduction in production. But we also kept
one eye on the future: continuing to pursue ourlong-term strategic priorities, while protecting ourability to ramp-up production again when better
times return. Our Helicopters and Defence andSpace businesses were a strong support, whichshows the strength of the whole Airbus team and theimportance of having a diverse portfolio.

Even though the pandemic forced us to scale backspending on non-critical activities, we protected key
current and future programmes that will be vital forthe coming years and decades. This of course
includes the single-aisle A321XLR, which stands
to play a key future role in the passenger air travel
market’s recovery, along with the H160, OneSat
satellites and European defence projects. And, we
mustn’t forget our new but equally importantconcepts for zero-emission aircraft: ZEROe.

I’m proud that, despite the crisis, we made 2020 a
year of progress for Airbus in sustainable aerospace
and accelerated the implementation of ourdecarbonisation roadmap.

Q. How were the financials and what’s theoutlook?
The actions we took earlier in the year to adapt andcontain cash burn really delivered an improved
financial performance in the second half. Due to thedepth of the crisis and the new market environment,
we had to take the difficult decision to start resizing
the commercial aircraft business.

Q. How would you sum up the operational
performance?
It was probably as good as was reasonably possible
in the new uncertain environment. In these challenging
times, the engagement and creativity of our teams
across the Company have been amazing. We’ve also
seen tremendous solidarity across the aerospacesector, with customers, suppliers and key partners.
By reducing rates early on in the crisis, we were able
to converge commercial aircraft production anddeliveries in the second half of the year. We obviously
delivered fewer aircraft than in 2019 due to the new“I’m proud that,
despite the crisis,
we made 2020 a
year of progress for
Airbus in sustainableaerospace.”

The related headcount adaptation affected many of
our colleagues, including some who had worked for
the Company for decades, but we have strived tofind solutions wherever possible to limit the social
impact. I also thank our government partners which
helped us to preserve expertise and know-how
through a number of measures during thisexceptional crisis.

Airbus / Annual Report – Overview 2020

Overview / CEO interview

Free cash flow for the year was negative but weended 2020 in a positive net cash position after astronger final quarter. This reflected the solid aircraft
deliveries during Q4, the good performance of the
Helicopters and Defence and Space businesses anda strong focus on working capital management.
Looking ahead, ours and the wider aerospaceindustry’s prospects for 2021 are closely linked to theevolution of the pandemic, effectiveness of the vaccine
programmes and the related travel restrictions. We
aim to start ramping up A320 Family production in
the second half of 2021, albeit at a slower rate thaninitially planned.
Our guidance for 2021 provides some visibility inthis volatile environment. It will of course be anotherchallenging year but we will act quickly wheneverneeded to reflect the changing landscape.
Q. How has Airbus progressed with its
sustainability goals?
Despite COVID-19, we even accelerated oursustainability plans in 2020. Throughout the
pandemic, we at Airbus have shown that our role insociety matters more than ever. I’m impressed by
how our employees have come together to fight the
pandemic and support the emergency services.

8

Meanwhile, our aircraft, including the MRTT and
A400M, have flown patients and transported vital
medical equipment while many of our colleagues
in the UK worked as part of the consortium to
manufacture ventilators for the National Health Service.
We are committed to leading sustainable aviation.
We intend to build the world’s first zero-emission
airliner, by 2035. But, sustainability also means
having safety, quality, integrity and compliance as thefoundations of all we do and remaining competitiveby having the most innovative and efficient products
to ensure we can continue to invest for the future.
Our purpose – pioneering sustainable aerospace fora safe and united world – will continue to guide us
through this crisis and beyond. Our aircraft will bringpeople together after the crisis and help kickstart theeconomic recovery. Our helicopters will continue tosave lives and support the emergency services. Our
defence business will make the world a safer place.
Our satellites will play a growing role in connecting
the world, while supporting the fight against climatechange. And our efforts to lead the decarbonisationof the aviation sector will allow people to continue
flying around the world, but not at the expense of
the planet or future generations.

Guillaume
Faury pictured
during theroll-out of the
final A380 after
assembly.

“Even though the pandemic forced us
to scale back spending on non-criticalactivities, we protected key current andfuture programmes.”

Executive Committee
As of 1 January 2021

Guillaume Faury
Chief Executive
Officer, Airbus SE

Dominik Asam
Chief Financial Officer

Thierry Baril
Chief Human
Resources Officer

Jean-Brice Dumont
Executive VicePresident Engineering

Bruno Even
Chief Executive
Officer, Airbus
Helicopters

John Harrison
General Counsel

Dirk Hoke
Chief Executive
Officer, Airbus
Defence and Space

Julie Kitcher
Executive VicePresident
Communications
and Corporate Affairs

Philippe Mhun
Executive VicePresident
Programmes
and Services

Christian Scherer
Chief Commercial
Officer and Head ofAirbus International

Michael Schöllhorn
Chief Operating
Officer

Grazia Vittadini
Chief Technology
Officer

Airbus / Annual Report – Overview 2020

Support
Overview / Resilience9

Supporting the global fight against COVID-19 was a key
activity during 2020. The Company also focused on ensuring
the health and safety of employees and implemented newworking standards and processes where required. By using
its aircraft and other resources, it contributed to thedevelopment, sourcing and ferrying of medical equipment,
including facemasks and ventilators, in support of healthservices. Some facilities were transformed into productionlines to manufacture essential equipment, including in the
UK where Airbus joined the Ventilator Challenge UK
programme to build vital ventilators. The Company also
supported the global effort for safe COVID-19 vaccine
transportation by air.

Airbus / Annual Report – Overview 2020

AdaptOverview / Resilience

10

The Company quickly adapted its operations
and business practices to reflect the new COVID-19
market environment as well as travel and health restrictions.
Commercial aircraft production rates were reduced to a levelthat preserved Airbus’ ability to meet customer demand
while protecting its ability to further adapt as the global
market evolves. Cost containment was also a key focus
across the Company. An innovative ‘e-delivery’ solution wasdeveloped that minimised the need for customers’ teams totravel to receive aircraft, including helicopters. This solution
accounted for more than 25% of the 2020 commercial
aircraft deliveries.

Airbus / Annual Report – Overview 2020

Innovate
Overview / Resilience11

Despite COVID-19, the Company retained
its strong focus on innovation to shape asustainable aerospace industry that isautonomous, connected and zero-emission.
Innovation is also pivotal to sustaining acompetitive edge. The year saw the launchof new concepts as well as progress ontechnology demonstrators. ZEROe concept
aircraft were unveiled to explore a variety ofconfigurations and technologies, includinghydrogen, to develop future zero-emission
aircraft. The CityAirbus demonstrator
progressed as part of Airbus Helicopters’
technology road-map for zero-emission
flight and urban air mobility. Airbus Defence
and Space continued its focus on
innovations for future defence programmes.

Airbus / Annual Report – Overview 2020

Lead
Overview / Resilience

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By delivering current programmes and progressing with
innovative future technologies, the Company aims toretain its leading market position in the coming decades.
Sustainable aerospace means being competitive with themost efficient new products, ensuring strategic autonomy
through defence programmes and also decarbonising
aviation. In commercial aircraft, the A321XLR will further
extend the performance of the A320neo Family whilein helicopters, the H160 and five-bladed H145 will bolster
the already strong market position. Airbus Defence andSpace is involved in key defence programmes to ensure
Europe’s strategic autonomy while innovative products
like OneSat are providing a competitive edge in thetelecommunications satellite market.

Airbus / Annual Report – Overview 2020

Overview / Sustainability

13

Sustainability
is a continued priority

2020 was a landmark year for sustainability,
as the Company made pioneering sustainableaerospace a strategic goal in line with its purpose:
We pioneer sustainable aerospace for a safeand united world.
Sustainability helps both the Company’s long-term
success and its responsibility for meeting society’s
present needs without compromising those of future
generations. For the Company, the term sustainability
fully encompasses the notions of both responsibility
and sustainability, in line with current businesspractices, and reflects a more comprehensive andintegrated approach to the topic. Acting responsibly
is a prerequisite to ensuring sustainability.
The Board Committee overseeing Ethics andCompliance broadened its scope in 2020 andbecame the Ethics, Compliance and Sustainability
Committee, taking responsibility for embedding
sustainability-related topics in strategy andobjectives. The Company’s progress on sustainability
topics now represents an important part of its
remuneration policy.
By adopting the United Nations’ Sustainable
Development Goals (SDGs) framework, theCompany has embraced a shared blueprint for the
future. The sustainability strategy was refined during
the year to emphasise four core commitments linked
to the SDGs. Goals for each of these commitments
will be finalised in 2021, with clear targets and key
performance indicators so that progress can bemonitored. To accelerate the Company’ssustainability initiatives, a new Sustainability andEnvironment function was formed from the
combination of two predecessor departments.
The four priority commitments in sustainability are
as follows. The list also includes references to therelevant SDGs:
Sustainability commitments
1. Lead the journey towards clean aerospace(SDG 9 Industry, innovation & infrastructure; SDG 12
Responsible consumption & production; SDG 13
Climate action; SDG 17 Partnerships for the goals)
The Company’s foremost ambition as an aircraft
manufacturer is to be a leader in the decarbonisationof aviation, as demonstrated by the unveiling in 2020of the ‘ZEROe’ hybrid-hydrogen concept aircraft.
A core ambition is to bring the world’s first zeroemission commercial aircraft to market by 2035. The
Company is also investing resources into examining
and reducing the impact of its in-service products
together with all actors in the sector. Reporting has
been extended to include the in-use emissions ofcommercial aircraft delivered in 2019 and 2020 –known as the Use of Sold Products (Scope 3).
Turning to industrial operations, the High5+ initiative
aims to reduce the footprint of all Airbus activities
globally and across the supply chain. It has specifictargets for 2030, against a 2015 base line, for cuttingenergy consumption, CO2 emissions, water
consumption, volatile organic compound emissions
and waste production.

The Company has included targets of a 3% further
reduction in CO2 emissions and a 5% reduction inpurchased water for 2021 as part of its top objectives
compared to 2020.

Commitment to the UN SDGs
The Company continues to support theUnited Nations’ Sustainable Development
Goals (SDGs) by acting responsibly,
leading sustainable innovation andpartnering with stakeholders to set thestandards in aerospace and defence.

Quality education
Ensure inclusive and equitable quality educationand promote lifelong learning opportunities for all.

Gender equality
Achieve gender equality and empower all womenand girls.

Decent work and economic growth
Promote sustained, inclusive and sustainableeconomic growth, full and productive employment
and decent work for all.
Industry, innovation, and infrastructure
Build resilient infrastructure, promote inclusive andsustainable industrialisation and foster innovation.

Responsible consumption and production
Ensure sustainable consumption and production
patterns.

Climate action
Take urgent action to combat climate change
and its impacts.

Peace, justice and strong institutions
Promote peaceful and inclusive societies forsustainable development, provide access tojustice for all and build effective, accountable
and inclusive institutions at all levels.
Partnerships for the goals
Strengthen the means of implementation andrevitalise the global partnership for sustainable
development.

Airbus / Annual Report – Overview 2020

Overview / Sustainability

2. Respect human rights and foster inclusion(SDG 4 Quality education; SDG 5 Gender equality;
SDG 8 Decent work & economic growth; SDG 16
Peace, justice & strong institutions)
During 2020, a new Human Rights Steering
Committee was established, which provides strategic
guidance to support related decision making. The
Company continued its efforts to improve genderbalance, including the number of women in
management positions, as well as awareness of
disability. Twenty-six percent of all new recruits werefemale during 2020. There are two female membersof the Executive Committee and three female
members of the Board of Directors. The Company
also took part in programmes to promote quality
education and mentorship for young people fromsocially deprived backgrounds.
3. Build our business on the foundationof safety and quality(SDG 8 Decent work & economic growth; SDG 12
Responsible consumption & production)

14

4. Exemplify business integrity(SDG 16 Peace, justice & strong institutions)
Ethics and Compliance (E&C) continued to be a toppriority, as it was in 2019 and 2018. In its list ofpriorities for 2020, the Company set the objective to:“Adapt our company and workforce to the crisis in
a responsible manner that upholds our values, while
ensuring health and safety and reinforcing ourcommitment to Ethics and Compliance.” As inprevious years, there was a strong focus on relevant
training for employees. Between 1 October 2019and 30 September 2020, employees followed
309,682 E&C e-learning sessions, including on
bribery, corruption and export control. Additionally,
3,501 employees attended live classroom training
on different E&C topics in 2020, the majority ofwhich was delivered in virtual classrooms due tothe pandemic.
More information about the Company’s sustainability
activities and strategy can be found in the NonFinancial Information section of the Universal
Registration Document 2020.

Partners join fello’fly initiative

Airbus was joined by two airline customers and three air navigation service
providers to demonstrate the operational feasibility of its fello’fly initiative. Imitating
the behaviour of birds, which fly together to use as little energy as possible, flying
an aircraft in the smooth updraft of another aircraft could reduce fuel consumptionby 5-10% per trip.

The Company’s number one priority is the continued
safe transport of everyone, and everything, that flies
aboard its products. In 2020, a range of activities
were pursued to promote a strong health and safety
culture. Included was the People Safety at Workinitiative, which deployed various packages atcompany sites focused on industrial changes andculture-change activities. During the year,
considerable health and safety efforts were focusedon the management of COVID-19 issues tosafeguard employees’ health and welfare. Despite
the challenging environment, more than 103,070
hours of health and safety training were delivered to
37,599 individual employees between October 2019
and September 2020.

Airbus Foundation’s active year

In a year when many children were forced to study from home, the Airbus Foundation
launched its #AirbusDiscoverAtHome series on social media. It also continued todeliver aid to disaster zones. Following a major explosion, the Foundation and its
partners sent a fully-loaded A350 to Beirut with 90 cubic metres of aid on board.

Airbus / Annual Report – Overview 2020

Overview / Airbus at a glance

15

A global leader
in aeronautics, spaceand related services

Airbus SE

Financial

Non-Financial(2)External revenue split

EBIT Adjusted(€ million)

Total energy consumption
(GWh)

1,706

3,482

(2019: 6,946)(Excluding electricity generated by CHP
on site for own use)

21%

€ 49.9 bn

12%(2019: € 70.5 bn)

67%

EBIT Reported(€ million)

AirbusAirbus Helicopters
Airbus Defence and Space

Order book in value
by region
5%

6%
29%

9%

€ 373 bn
21%

(2019: € 471 bn)-510(2019: 1,339)-1.45

North America
Middle East
Latin America
Other

Ethics and Compliancee-learning sessions

309,682(1 October 2019 to 30 September 2020)

30%

Europe103,070(October 2019 to September 2020)

Reported loss
per share(1) (€)(2019: -1.75)

Asia Pacific

Health and Safety training hours(to 37,599 employees)

Order intake(€ million)

Number of employees

33,290 131,349(2019: 81,195)(2019: 134,931)

1. FY2020 average number of shares: 783,178,191 compared to 777,039,858 in FY2019.
2.	For further information see the Non-Financial Information section of the Universal
Registration Document 2020.

Airbus / Annual Report – Overview 2020

Overview / Airbus at a glance

16

AirbusCommercial aircraft deliveries showedresilience and the year-on-year declinereflected the adverse market environment.
2020 still included a number of operational
milestones.
Airbus delivered 566 commercial aircraft (2019: 863
aircraft) to 87 customers. A total of 446 A320 Family
aircraft were delivered, including 431 NEO versions
compared to 551 NEOs in 2019. Additionally,customers received 38 A220s, 19 A330s, 59 A350s
and 4 A380s.
Net commercial aircraft orders totalled 268 (2019:768 aircraft). The A320 Family order intake included
37 A321XLRs. At year-end, the total order backlog
stood at 7,184 commercial aircraft across all productranges compared to 7,482 at the end of 2019.
Revenues decreased by 37% to € 34,250 million(2019: € 54,775 million), mainly reflecting the lower
deliveries which declined by 297 aircraft year-on-year.
EBIT Adjusted of € 618 million (2019: € 5,947 million1)
mainly reflected the lower aircraft deliveries and lower
cost efficiency. It also included COVID-19 related
charges. Research and Development expenses
declined by 13% to € 2,436 million (2019: €2,816 million).
Operational developments
Commercial aircraft production rates were revised
downwards during the year to reflect the new
COVID-19 market environment.
The innovative ‘e-delivery’ solution represented morethan 25% of the 2020 deliveries. This allowed
customers to receive aircraft while minimising theneed for their teams to travel amid the
COVID-19 pandemic.

Deliveries of the A330-800 began after the A330neo
variant was certified by European Union and US
authorities early in the year. A version of the
A330-900 with a higher maximum take-off weight of
251 metric tonnes was also certified. During the year,
the 1,500th ever A330 Family aircraft was delivered.
The first A220 assembled in the US was deliveredfrom the facility in Mobile, Alabama, while the ACJ
TwoTwenty business jet based on the A220 wasformally launched. The development of the highly
fuel-efficient long-range capable A321XLR continued.
The Final Assembly Line in Tianjin, China, delivered
its 500th A320 Family aircraft, leveraging theCompany’s global footprint.
Key achievements 2020
• 566 aircraft deliveries, showing resilience• First US-assembled A220 delivered• 1,500th A330 Family aircraft delivered• A321XLR development progresses

Deliveries(units)Net order intake(units)566

268(2019: 863)

(2019: 768)

Revenues(€ million)

EBIT Adjusted(€ million)

34,250 618(2019: 54,775)(2019: 5,9471)

External revenues
by activity
7%

93%

Services

Platforms

1.	Previous year figures are restated toreflect the adoption of a new segment
reporting structure for “Transversal”
activities as of 1 January 2020.

Airbus / Annual Report – Overview 2020

Overview / Airbus at a glance17

AirbusHelicopters
The Division showed resilience, retaining its
leading market position and reporting higher
earnings. Meanwhile, two new models werecertified and further steps were taken on
innovation programmes.
Airbus Helicopters maintained its top ranking in thecivil and parapublic market, despite a challenging
environment reflecting the economic consequencesof the COVID-19 pandemic. Net orders totalled 268
helicopters (2019: 310 units), including 31 naval
versions of the NH90 for Germany’s Bundeswehr
in the fourth quarter and 11 H160s. Orders for the
best-selling H145 programme included 17 UH-72Bs
for the US Army, the first versions equipped with theFenestron tail rotor and Helionix avionics suiteordered by the customer.
In services, order intake included an HCarecontract from the National Aeronautics and Space
Administration (NASA) to support its fleet of H135
helicopters.
Total deliveries declined to 300 units (2019: 332
units) and included the initial five-bladed H145
helicopters and first NH90s for the Spanish Air Force.
Revenues however rose by 4% to € 6,251 million(2019: € 6,007 million), benefitting from a favourable
product mix and growth in services. EBIT Adjusted
increased to € 471 million (2019: € 422 million),reflecting strong government-related activities,
reliable programme execution as well as lower
Research and Development (R&D) expenses.
In reaction to the pandemic, Airbus Helicoptersmobilised to keep its military and civil customers

flying thanks to elevated levels of technical andlogistics support, new distance learning solutions,and direct assistance in making protective equipment
available to pilots and crews.
Key new helicopters certified
The more capable five-bladed H145 was certified byboth the European Union Aviation Safety Agency and
US Federal Aviation Administration during the year.
This latest upgrade of the H145 family increases theuseful load of the helicopter by 150kg. European
authorities also certified the flagship multi-role
twin-engine H160 helicopter. Featuring the latest
technological innovations, the H160 is able toperform missions such as offshore transportation,
emergency medical services, business aviation andpublic services.
Innovation projects progress
In 2020, innovation milestones included the first
fully automatic flight of CityAirbus, a demonstrator
that will play an important role in developing
zero-emission flight and in preparing the future urban
air mobility market. The VSR700, the rotary-wing
unmanned aerial system, performed its first free flightin July 2020 and autonomous deck-landing trials at
the end of the year.
Key achievements 2020
• Leading position in civil and parapublicmarket retained• First five-bladed H145 deliveries following
certification• H160 helicopter certified by EASA
• CityAirbus and VSR700 innovation projects
reach milestones

Deliveries(units)Net order intake(units)300

268(2019: 332)

(2019: 310)

Revenues(€ million)

EBIT Adjusted(€ million)

6,251 471
(2019: 6,007)External revenues
by activity

43%
57%

Services

Platforms(2019: 422)

Airbus / Annual Report – Overview 2020

Overview / Airbus at a glance

AirbusDefenceand Space
The Division supported the Company’s overall
performance, reporting higher order intake andearnings. Progress was made during the year
on key European defence programmes.
Airbus Defence and Space’s net order intake increasedby 39% to € 11,862 million (2019: € 8,520 million),
representing a book-to-bill by value of above one.
The performance was mainly driven by major contract
wins in Military Aircraft, including an order for 38 new
Eurofighter jets from Germany and the integrationof ESCAN radars for existing German and Spanish
Eurofighter fleets. In Space Systems, order intake
growth was largely driven by telecommunication
satellites and Earth observation and science
activities. During the year, the UK Ministry of Defence
placed a contract for the Skynet 6A militarycommunications satellite.
Revenues of € 10,446 million (2019: € 10,907 million)
mainly reflected lower volume as well as the impact
of COVID-19 on business phasing, mainly in Space
Systems. The revenue decrease at Space Systems
also reflected the lower order intake of the past years.
Underlying profitability, or EBIT Adjusted, increased to€ 660 million (2019: € 565 million), mainly reflecting
cost containment measures and lower Research and18

External
revenues
by activity

Order book(€ million)

32%

68%

Services

Revenues(€ million)

Net order intake(€ million)

EBIT Adjusted(€ million)

33,505 10,446 11,862 660(2019: 32,263)(2019: 10,907)(2019: 8,520)(2019: 565)

Platforms

Development expenses, partly offset by the impact
of COVID-19, including on the launcher business.
A total of nine A400M military transporters weredelivered, with Belgium taking delivery of its first ofseven aircraft in December. The delivery to Belgium
means all launch customers are now equipped withthe airlifter. In Space Systems, the Solar Orbiter
spacecraft and the ocean mapping satellite“Sentinel-6 Michael Freilich” were launched.
Future programmes in focus
On Europe’s Future Combat Air System programme,
the Joint Concept Study and Phase 1A of thedemonstrator portion progressed.
Meanwhile, negotiations for the Eurodrone
unmanned aerial system progressed with theEuropean defence procurement agency OCCAR.
Key achievements 2020
• Germany orders 38 new Eurofighters• Major telecommunication satellite contract wins
• Book-to-bill by value above 1• Nine A400M aircraft delivered

Airbus / Annual Report – Overview 2020

Overview / CFO interview

19

Navigating thechallenge
Q. How was 2020 from your perspective
as CFO?
2020 was obviously overshadowed by COVID-19.
Aside from the opening two months, the main focus
during the year was on mitigating the impact of thepandemic on the business. At the same time we had
to ensure the Company could retain the financial
and operational flexibility needed to swiftly capitaliseon any rebound and also achieve our longer-termgoal of leading the development of a sustainableaerospace sector. The key challenge has been, andcontinues to be, to find the right balance between
cash containment and cost reduction on the one
side, and laying a solid base for a post COVID-19
recovery on the other.

Dominik Asam
Chief Financial Officer
Dominik Asam explains how the Company
reacted to the challenge of the pandemic
from his viewpoint as Chief Financial Officer.
He also details the earnings and cash
performance during 2020 and outlines
his priorities going forward.

Given the extent of the crisis we had to act quickly.
In March 2020 we therefore took the important
step of further bolstering our liquidity and launching
immediate cash containment measures. This ofcourse was followed by the additional steps of
reducing aircraft production rates and resizing thecommercial aircraft activities to address ourlong-term cost structure.
In tandem with the solid level of aircraft deliveries in
the fourth quarter, these actions helped us mitigate
the cash consumption we had in the first half of theyear. Against a backdrop of the worst crisis ever tohit our industry, the 2020 financials reflect these
efforts and the strong commitment of our employees
and suppliers.

Q. What drove the financial performance?
Starting firstly with the top line, revenues decreased
by some 29% to € 49.9 billion mainly reflecting thedifficult commercial aircraft market and the related
lower deliveries. Our underlying profitability, or EBIT
Adjusted, decreased sharply to € 1.7 billion, also
reflecting the weaker commercial aircraft deliveries
and some idle costs. Additionally, it included charges
recorded due to impairments and write-offs triggeredby the pandemic.

“Given the extent of
the crisis we had toact quickly.”

If we look across the business lines, the two Divisions
partly offset the weaker EBIT Adjusted performancewithin the commercial aircraft activity. Helicoptersregistered a double-digit percentage rise, reflecting
its strong government-related business, reliable
programme execution and reduced R&D expenses.
Despite the headwind from COVID-19, its EBIT
Adjusted profit margin increased to 7.5% in 2020
from 7.0% in 2019. Defence and Space also recorded
double-digit percentage growth in EBIT Adjusted,
but this mainly reflected cost containment and lower
R&D, partly offset by the impact of COVID-19,
including on launchers.
After including net negative Adjustments of about€ -2.2 billion, we ended up with an EBIT reportedof € -0.5 billion. The main charges here were€ -1.2 billion related to the Company-wide restructuringplan, some € -385 million related to A380 programme
cost and € -480 million from the pre-delivery
payment mismatch and balance sheet revaluation,
driven by the strong devaluation of the US dollar. All
in all, we ended 2020 with a net loss of € -1.1 billion
and a reported loss per share of € -1.45.

Airbus / Annual Report – Overview 2020

Overview / CFO interview

Q. How was the cash performance?
Overall, we saw an improvement in cash generation
during the second half of the year. Looking at the
full-year, the underlying free cash flow before M&A
and customer financing was strongly negative at€ -6.9 billion. This figure includes the € -3.6 billion
penalty payments made in Q1 related to thecompliance settlements. Additionally, it reflects grosscash flow from operations of € +3.1 billion and achange in working capital of € -4.6 billion, excluding
the penalties. The working capital change mainlyreflected a strong decrease in trade liabilities driven
by the production rate adaptation while inventories
remained stable year-on-year.
Looking at the fourth quarter in isolation, we
achieved a noticeable performance improvement.
Free cash flow before M&A and customer financing
was positive at € +4.9 billion. This reflects the solid
number of commercial aircraft deliveries in thequarter of 225, the strong focus on working capitalmanagement and also the good cash performanceof the Helicopters and Defence and Space Divisions.
The Q4 working capital included a positive inventory
effect as we were able to reduce the number offinished, but not delivered, aircraft by working closelywith our customers.
Given the cash containment measures and the needto prioritise projects, capital expenditures in 2020
declined to around € 1.8 billion, some € 0.6 billion
lower than in 2019. Research and Development
expenditures were reduced by € 0.5 billion to around€ 2.9 billion. While these cuts in investment into our
future were significant, they did take into accountthe need to sustain our delivery performance in arecovery scenario and our innovation power.
We ended the year with a net cash position of€ 4.3 billion after being in a net debt position after thesecond and third quarters. This not only reflects thedelivery performance in Q4 but also the necessary
cash containment and adaptation measures taken
during the year.

20“Our strong liquidity position
has been key in getting
through this crisis.”
Q. How important was protecting theCompany’s liquidity?
Our strong liquidity position has been key in getting
through this crisis. We moved very early in the
pandemic to protect it by securing credit facilities
from financial institutions.
As a reminder, we initially secured a € 15.0 billion
supplemental liquidity line to ensure the smooth
continuity of our operations. We progressively termed
this credit line out by issuing long-term debt securities
at favourable rates and by upsizing and extending
our € 3 billion revolving credit facility to € 6 billion.
By year-end we had reduced our COVID-19 related
supplemental liquidity line to € 6.2 billion.
Taking into account our gross cash position andcredit facilities, the Company had a liquidity positionof above € 30 billion at the end of 2020. Thanks toour strong credit rating, we were nevertheless able tolimit gross interest expense in 2020 to € 0.4 billion.
Looking ahead, we will strive to maintain strong
liquidity and ratings to help navigate the crisis andposition us for growth once the situation improves.
Q. What are your priorities for 2021?
From my perspective in finance, we need to continue
focusing on supporting the Company in its efforts towork through the crisis and deliver on the guidance
for the year. We also have to protect our ability toadapt as required and invest in areas such as
decarbonised technologies that help us meet our
future challenges and remain competitive.
Another great team effort as we saw in 2020 will help
us achieve these priorities. Beyond 2021, we remain
fully focused on our earnings and free cash flow
growth trajectory.

Revenues(€ million)

49,912(2019: 70,478)

EBIT Adjusted(€ million)

1,706(2019: 6,946)

EBIT Reported(€ million)-510(2019: 1,339)

Reported loss
per share(1) (€)-1.45(2019: -1.75)

Free cash flow
before M&A andcustomer financing(€ million)-6,935(2019: 3,509)

1.	FY 2020 average number of shares:
783,178,191 compared to
777,039,858 in FY2019.

Airbus / Annual Report – Overview 2020

Overview / Share information

21

2020

Share information

Shareholding structure
As of 31 December 2020
11%

4%

11%

74%

Free float*
SOGEPA (French State)
GZBV (German State)
SEPI (Spanish State)* Includes shares held by the Company itself.

Financial calendar
Full-Year 2020 results:
18 February 2021
Annual General Meeting:
14 April 2021
First Quarter 2021 results:
29 April 2021
Half-Year 2021 results:
29 July 2021
Nine-Month 2021 results:
28 October 2021
Investor Relations andFinancial Communication
E-mail: ir@airbus.com
Website: www.airbus.com

In 2020, the Airbus SE share price decreased over
the year to close at € 89.78, down 31%.
After opening at € 132.58 in January, the shareprice started the year in positive territory, reachingan all-time high in January at € 139.00, in the wakeof the strong 2019 performance. The Airbus SE
share price then sharply decreased in February
and March following the COVID-19 outbreak andthe spread outside China, down to its lowest pointin 2020 at € 49.07 on 18 March.
While widespread lockdowns continued to weigh onstock performance, the share price slightly increasedin Q2, supported by the announcement of measures
to strengthen the Company’s liquidity and theadjustment of production levels to the new environment.
In early June, the Airbus SE share price followed
global markets with a strong increase, reflecting
optimism on a faster than expected economic
recovery, peaking at € 81.91 on 8 June 2020.
Subsequently, this rally was partially reduced due
to a more pessimistic outlook on the recovery of
the global economy as published by the International
Monetary Fund and the Federal Reserve.
In Q3, the Airbus SE share price was rather stable.
In July, the share price increased in line with themarket, on the sentiment of a slowing pace of
COVID-19 infections and the Airbus SE H1 2020
results which were well received by the market under
the circumstances. After the summer, shares declined
again following an increased fear of resurgence of thepandemic, new travel restrictions and the general
uncertainty around the US presidential election.

Share price evolution
170%

2018

2019

2020

160%
150%
140%
130%
120%
110%
100%
90%
80%
70%
60%
50%
Dec-2017
AirbusDec-2018
Eurostoxx 600 Index

CAC 40 Index

Dec-2019
Dec-2020
MSCI World Aerospace & Defence Index

Shares recovered in Q4, supported by theannouncement of effective vaccines and following areassuring Nine-Month disclosure, when Airbus SE
announced a positive free cash flow (FCF) before
M&A and customer financing in the third quarter of2020 and issued guidance to achieve at least a
breakeven FCF before M&A and customer financing
in the fourth quarter of 2020.
With an annual decrease of -31% in 2020, Airbus SE
shares underperformed the Eurostoxx 600 (-4%) andthe CAC40 (-7%), as well as the Aerospace and Defence
sector (MSCI World Aerospace and Defence -17%).
Airbus / Annual Report – Overview 2020

Safe Harbour Statement:This document includes forward-looking statements.
Words such as “anticipates”, “believes”, “estimates”,“expects”, “intends”, “plans”, “projects”, “may” andsimilar expressions are used to identify theseforward-looking statements. Examples of forwardlooking statements include statements made about
strategy, ramp-up and delivery schedules,
introduction of new products and services andmarket expectations, as well as statements regarding
future performance and outlook.
By their nature, forward-looking statements involverisk and uncertainty because they relate to future
events and circumstances and there are manyfactors that could cause actual results anddevelopments to differ materially from thoseexpressed or implied by these forward-looking
statements.
These factors include but are not limited to:• Changes in general economic, political ormarket conditions, including the cyclical natureof some of Airbus’ businesses;• Significant disruptions in air travel (including asa result of the spread of disease or terrorist
attacks);• Currency exchange rate fluctuations, inparticular 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 aerospaceand 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 othereconomic, political and technological risks anduncertainties;
The full impact of the COVID-19 pandemic andthe resulting health and economic crisis.

As a result, Airbus SE’s actual results may differ
materially from the plans, goals and expectations set
forth in such forward-looking statements.
For more information about the impact of the
COVID-19 pandemic, see Note 2 “Impact of the
COVID-19 pandemic” of the Notes to the Airbus SE
IFRS Consolidated Financial Statements 2020. For
more information about factors that could cause
future results to differ from such forward-looking
statements, see Airbus SE’s annual reports, including
its Universal Registration Document and the mostrecent Risk Factors.
Any forward-looking statement contained in thisdocument speaks as of the date of this document.
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 not precisely reflect the absolute figures.

Image credits
Cover © AIRBUS 2020 – All rights reserved – IIVS
p. 2 © AIRBUS 2020 – studio123
p. 3 © AIRBUS 2020 – Pablo Cabellos, © AIRBUS
2020 – photo by P.PIGEYRE / master films,© AIRBUS 2020 – photo by P.PIGEYRE / masterfilms, © AIRBUS 2018 – photo by A.DOUMENJOU /master films, © AIRBUS 2020
p. 4 Bundeswehr / Toni Dahmen, © AIRBUS 2020,© AIRBUS S.A.S. 2019 – computer rendering by
FIXION – photo by dreamstime.com – MMS – 2019,© AIRBUS 2019 – Anthony Pecchi, © AIRBUS
2020 – All rights reserved – IIVS, © AIRBUS 2020
– All rights reserved – IIVS
p. 5 © Airbus
p. 6 René Obermann, Victor Chu, Jean-Pierre
Clamadieu, Ralph D. Crosby Jr, Lord Paul Drayson,
Carlos Tavares © AIRBUS 2019 – photo by A.
DOUMENJOU / master films, Guillaume Faury – ©
AIRBUS 2018 – photo by C. GUIBBAUD
p. 7 © AIRBUS 2019 – photo by H.GOUSSÉ /master films
p. 8 © AIRBUS 2020 – photo by L. BORREL,(Exec Com) © AIRBUS 2019 – photo by H.
GOUSSÉ / master films
p. 9 © Pablo Cabellos
p. 10 © Airbus
p.11 © Airbus Helicopters – Christian D. Keller
p. 12 © Airbus Helicopters – Eric Raz
p. 13 © AIRBUS 2020 – All rights reserved – IIVS
p. 14 © AIRBUS 2020 © AIRBUS 2020 – photo by
P.PIGEYRE / master films
p. 15 © AIRBUS 2021 – photo by L.BORREL,© AIRBUS 2020 – photo by H.GOUSSÉ / masterfilms
p. 16 © AIRBUS 2019 – photo by H.GOUSSÉ /master films
p. 17 © Ned Dawson
p. 18 © AIRBUS 2020 – Pablo Cabellos
p. 19 © AIRBUS 2019 – photo by teamfoto
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