Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019

Contents
1 Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Statements ......................................................................2
Unaudited Condensed Interim IFRS Consolidated Income Statement ...............................................................................................2
Unaudited Condensed Interim IFRS Consolidated Statement of Comprehensive Income .................................................................3
Unaudited Condensed Interim IFRS Consolidated Statement of Financial Position ...........................................................................4
Unaudited Condensed Interim IFRS Consolidated Statement of Cash Flows ....................................................................................6
Unaudited Condensed Interim IFRS Consolidated Statement of Changes in Equity ..........................................................................7
2 Notes to the Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Statements.................................................81.

The Company .......................................................................................................................................................................82.

Accounting Policies ...............................................................................................................................................................83.

Acquisitions and Disposals.................................................................................................................................................. 10

4.

Related Party Transactions ................................................................................................................................................. 10

5.

Segment Information ........................................................................................................................................................... 10

6.

Revenue and Gross Margin ................................................................................................................................................ 11

7.

Research and Development Expenses ............................................................................................................................... 128.

Share of Profit from Investments Accounted for under the Equity Method and Other Income from Investments .................. 12

9.

Other Income and Other Expenses ..................................................................................................................................... 12

10.

Total Financial Result.......................................................................................................................................................... 13

11.

Income Taxes ..................................................................................................................................................................... 13

12.

Earnings per Share ............................................................................................................................................................. 13

13.

Intangible Assets and Property, Plant and Equipment ......................................................................................................... 13

14.

Investments Accounted for under the Equity Method........................................................................................................... 13

15.

Other Investments and Other Long-Term Financial Assets ................................................................................................. 14

16.

Inventories .......................................................................................................................................................................... 14

17.

Provisions ........................................................................................................................................................................... 14

18.

Other Financial Assets and Other Financial Liabilities ......................................................................................................... 15

19.

Other Assets and Other Liabilities ....................................................................................................................................... 15

20.

Total Equity ......................................................................................................................................................................... 1621.

Net Cash ............................................................................................................................................................................. 16

22.

Financial Instruments .......................................................................................................................................................... 17

23.

Litigation and Claims ........................................................................................................................................................... 18

24.

Number of Employees......................................................................................................................................................... 20

25.

Events after the Reporting Date .......................................................................................................................................... 20

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 20191
Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Statements
Unaudited Condensed Interim
IFRS Consolidated Income Statement(In € million)

Revenue
Cost of sales
Gross margin
Selling expenses
Administrative expenses
Research and development expenses
Other income
Other expenses
Share of profit from investments accounted for under the equity method
Other income from investments
Profit before financial result and income taxes
Interest income
Interest expense
Other financial result
Total financial result
Income taxes
Profit for the period

Note
6
6

7
9
9
8
8

10
11

Attributable to:Equity owners of the parent (Net income)Non-controlling interests
Earnings per share
Basic
Diluted12
12

1 January 31 March 201912,549(11,169)
1,380
(212)
(372)
(654)
70
(21)
(8)
(2)
181
56
(92)
(7)
(43)
(94)
44

1 January 31 March 201810,119(9,045)
1,074
(185)
(357)
(616)
256
(9)
31
5
199
41
(104)
102
39
46
284

40
4

283
1

€
0.05
0.05

€
0.37
0.37

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

2

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019

Unaudited Condensed Interim
IFRS Consolidated Statement of Comprehensive Income
1 January 31 March 201944

1 January 31 March 2018
284

Items that will not be reclassified to profit or loss:
Remeasurement of the defined benefit pension plans
Change in fair value of financial assets
Share of change from investments accounted for under the equity method
Income tax relating to items that will not be reclassified

(619)
74
2
175

(261)
(50)
6
66

Items that may be reclassified to profit or loss:
Foreign currency translation differences for foreign operations
Change in fair value of cash flow hedges
Change in fair value of financial assets
Share of change from investments accounted for under the equity method
Income tax relating to items that may be reclassified
Other comprehensive income, net of tax
Total comprehensive income for the period

53
(728)
127
12
171
(733)
(689)

(108)
1,994
(44)
(6)
(547)
1,050
1,334

Attributable to:Equity owners of the parent
Non-controlling interests

(679)
(10)

1,328
6

(In € million)

Profit for the period
Other comprehensive income

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

3

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019

Unaudited Condensed Interim
IFRS Consolidated Statement of Financial Position(In € million)

AssetsNon-current assets
Intangible assets
Property, plant and equipment
Investment property
Investments accounted for under the equity method
Other investments and other long-term financial assets
Non-current contract assets
Non-current other financial assets
Non-current other assets
Deferred tax assets
Non-current securities
Total non-current assets

Note

31 March 201931 December 2018

13
13

16,644
17,537
3
1,598
4,058
172
1,015
872
5,381
10,07357,353

16,726
16,773
3
1,693
3,811
65
1,108
888
4,835
10,66256,56435,154
6,384
406
790
1,956
5,204
1,483
2,422
5,987
59,786
331
117,470

31,891
6,078
489
789
1,811
4,246
1,451
2,132
9,413
58,300334
115,198

14
15
18
19
21

Current assets
Inventories
Trade receivables
Current portion of other long-term financial assets
Current contract assets
Current other financial assets
Current other assets
Current tax assets
Current securities
Cash and cash equivalents
Total current assets
Assets and disposal group of assets classified as held for sale
Total assets

16
15
18
19
21
21
3

4

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019(In € million)

Equity and liabilities
Equity attributable to equity owners of the parent
Capital stock
Share premium
Retained earnings
Accumulated other comprehensive income
Treasury shares
Total equity attributable to equity owners of the parent
Non-controlling interests
Total equity

Liabilities
Non-current liabilities
Non-current provisions
Long-term financing liabilities
Non-current contract liabilities
Non-current other financial liabilities
Non-current other liabilities
Deferred tax liabilities
Non-current deferred income
Total non-current liabilities

Note

31 March 201931 December 2018

20

777
2,941
5,400
(157)
(51)
8,910
3
8,913

777
2,941
5,923
134
(51)
9,724
(5)
9,719

12,542
8,696
15,637
7,592
421
1,442
41
46,371

11,571
7,463
15,832
8,009
460
1,318
40
44,693

6,197
2,323
13,83327,169
3,594
6,761
1,312
674
61,863
323
108,557
117,470

7,317
1,463
16,237
26,229
2,462
5,288
732
626
60,354432
105,479
115,198

17
21
18
19

Current liabilities
Current provisions
Short-term financing liabilities
Trade liabilities
Current contract liabilities
Current other financial liabilities
Current other liabilities
Current tax liabilities
Current deferred income
Total current liabilities
Disposal group of liabilities classified as held for sale
Total liabilities
Total equity and liabilities

17
21

18
19

3

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

5

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019

Unaudited Condensed Interim
IFRS Consolidated Statement of Cash Flows
Note(In € million)

Operating activities:
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:
Depreciation and amortisation
Valuation adjustments
Deferred tax expense (income)Change in income tax assets, income tax liabilities and provisions for income
tax
Results on disposals of non-current assets
Results of investments accounted for under the equity method
Change in current and non-current provisions
Contribution to plan assets
Change in other operating assets and liabilities
Cash (used for) operating activities (1)Investing activities:
Purchases of intangible assets, property, plant and equipment andinvestment property
Proceeds from disposals of intangible assets, property, plant and equipment andinvestment property
Acquisition of subsidiaries, joint ventures, businesses and non-controllinginterests (net of cash)
Proceeds from disposals of subsidiaries (net of cash)
Payments for investments accounted for under the equity method, otherinvestments and other long-term financial assets
Proceeds from disposals of investments accounted for under the equity method,other investments and other long-term financial assets
Dividends paid by companies valued at equity
Disposals of non-current assets and disposal groups classified as assets held forsale and liabilities directly associatedChange in securities
Cash (used for) investing activities
Financing activities:
Change in financing liabilities
Change in liability for puttable instruments
Change in treasury shares
Cash provided by financing activities
Effect of foreign exchange rate changes on cash and cash equivalents
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period (2)Cash and cash equivalents at end of period(1)(2)

1 January 31 March 2019

1 January 31 March 2018

40
4

283
1

720
68
(74)

564
(94)
192

27
(44)
8
(54)
(42)
(4,703)(4,050)

(320)
(207)
(31)
(128)
(53)
(3,797)(3,590)

(455)

(393)

22

156

8
1

0
0

(136)

(188)

94
5

103
0

0
459
(2)

193
5
(124)

448
83
0
531
108
(3,413)
9,428
6,015

156
0
(37)
119
(72)
(3,667)
12,021
8,354

Cash provided by operating activities has been positively impacted by certain agreements reached with the Company’s suppliers and customers relating
to the settlement of claims and negotiation on payment terms.
The cash and cash equivalents at the beginning of the period 2019 and at the end of the first three months 2019 include € 15 million and € 28 million
respectively, which is presented as part of assets of disposal groups classified as held for sale.

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

6

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019

Unaudited Condensed Interim
IFRS Consolidated Statement of Changes in Equity(In € million)
Balance at 1 January 2018, as reported
Restatements (1)Balance at 1 January 2018, restated (1) (2)Profit for the period (1)Other comprehensive income
Total comprehensive income for the period
Share-based payment (IFRS 2)
Equity transaction (IAS 27)
Change in treasury shares
Balance at 31 March 2018

Equity attributable toequity owners of theparent13,348(2,616)
10,732
283
1,045
1,328
33
0
(37)
12,056

Non-controllinginterests
3
(1)
2
1
5
6
0
2
0
10

Total Equity
13,351(2,617)
10,734
284
1,050
1,334
33
2
(37)
12,066

Balance at 1 January 2019, as reported
Restatements (3)Balance at 1 January 2019, restated (3)Profit for the period
Other comprehensive income
Total comprehensive income for the period
Share-based payment (IFRS 2)
Equity transaction (IAS 27)
Balance at 31 March 2019

9,724
(122)
9,602
40
(719)
(679)
33
(46)
8,910

(5)
0
(5)
4
(14)
(10)
0
18
3

9,719
(122)
9,597
44
(733)
(689)
33
(28)
8,913

(1)
(2)
(3)

Previous year figures are restated due to the application of IFRS 15.
Opening balance figures are restated due to the application of IFRS 9.
Opening balance figures are restated due to the application of IFRIC 23.

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

7

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 20192
Notes to the Airbus SE
Unaudited Condensed Interim
IFRS Consolidated Financial Statements
1.

The Company

The accompanying Unaudited Condensed Interim IFRS Consolidated Financial Statements present the financial position and the resultsof operations of Airbus SE together with its subsidiaries referred to as “the Company”, a European public limited-liability company(Societas Europaea) with its seat (statutaire zetel) in Amsterdam, The Netherlands, its registered address at Mendelweg 30, 2333 CS
Leiden, The Netherlands, and registered with the Dutch Commercial Register (Handelsregister) under number 24288945. The Company
reportable segments are Airbus, Airbus Helicopters and Airbus Defence and Space (see “– Note 5: Segment Information”). The Company
is listed on the European stock exchanges in Paris, Frankfurt am Main, Madrid, Barcelona, Valencia and Bilbao. The Unaudited
Condensed Interim IFRS Consolidated Financial Statements were authorised for issue by the Company’s Board of Directors on 29 April
2019.

2.

Accounting Policies

The Unaudited Condensed Interim Consolidated Financial Statements are prepared in accordance with International Financial ReportingStandards (“IFRS”), issued by the International Accounting Standards Board (“IASB”) as endorsed by the European Union (“EU”) as at 31
March 2019. They are prepared and reported in euro (“€”) and all values are rounded to the nearest million appropriately.
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect theabsolute figures.
These unaudited Condensed Interim IFRS Consolidated Financial Statements are prepared in compliance with IAS 34 and should beread in conjunction with the IFRS Consolidated Financial Statements as of 31 December 2018. With the exception of the changes
highlighted below and applied for the first time in the first three months 2019, the Company’s accounting policies and methods areunchanged compared to 31 December 2018.
The Company has implemented the new standard IFRS 16 “Leases” and the new interpretation IFRIC 23 ”Uncertainty over Income tax
treatment“ on 1 January 2019. As a result, the Company has changed its accounting policy for leases accounting and for the classificationof certain liabilities linked to uncertainty over income tax as detailed below.
The implementation of other amended standards and new interpretation has no material impact on the Unaudited Interim Condensed
IFRS Consolidated Financial Statements as of 31 March 2019.

IFRS 16 “Leases”
In May 2016, the IASB published the new standard IFRS 16, which replaces the existing guidance on leases, including IAS 17 “Leases”,
IFRIC 4 “Determining Whether an Arrangement Contains a Lease”, SIC-15 “Operating Leases—Incentives”, and
SIC-27 “Evaluating the Substance of Transactions Involving the Legal Form of a Lease”. IFRS 16 introduces a uniform lessee accounting
model. Applying that model, a lessee is required to recognize a right-of-use asset representing the lessee’s right to use the underlying
asset and a financial liability representing the lessee’s obligation to make future lease payments.
There are exemptions for short-term leases and leases of low-value assets. Lessor accounting remains comparable to that provided by
the existing leases standard and hence lessors will continue to classify their leases as operating leases or finance leases.
The Company adopted the new standard IFRS 16 on 1 January 2019 using the modified retrospective method and therefore the cumulative
effect of adopting IFRS 16 has been recognized as an adjustment to the opening balance of retained earnings which is nil at 1 January
2019, with no restatement of comparative information.
Identifying a lease
Under IFRS 16, the Company assesses whether a contract is or contains a lease based on the definition of a lease. A contract is, or
contains a lease if the contract conveys the right to control the use of an identified asset for a specified period of time in exchange forconsideration.

8

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019

On transition to IFRS 16, the Company elected to apply the practical expedient to grandfather the assessment of which transactions areleases. The previous determination pursuant to IAS 17 and IFRIC 4 of whether a contract is a lease is thus maintained for existing
contracts.
The Company as a lessee
As a lessee, the Company previously classified leases as operating or finance leases based on assessment of whether the risks andrewards incidental to ownership of the underlying asset were transferred. Under IFRS 16, the Company recognises right-of-use assets
and lease liabilities for most of its leases. Leases which were classified as operating lessees under IAS 17 are now recognised on thebalance sheet.
When applying IFRS 16 for the first time, the Company has used the following practical expedients for leases previously classified as
operating leases under IAS 17:-

To apply a single discount rate to a portfolio of leases with reasonably similar characteristics,-

The right-of-use to the leased asset has generally been measured at the amount of the lease liability, using the discount rate at
1 January 2019. Where accrued lease liabilities existed, the right-of-use asset has been adjusted by the amount of the accrued
lease liability under IFRS 16. At initial application of IFRS 16, the measurement of the right-of-use does not include initial direct
costs. In some cases, the value of right-of-use assets may differ from the value of the liabilities due to offsetting against existing
provisions or as a result of valuation allowances,-

Not to apply the new recognition requirements to short-term leases and to leases of low value assets as soon as the newstandard is effective.

The Company’s operating leases mainly relate to real estate assets, company cars and equipment. The most significant impact identified
by the Company relates to its operating leases of real estate assets (such as land, warehouses, storage facilities and offices).
For leases that were classified as finance leases under IAS 17, the Company did not change the carrying amount of the right-of-use asset
and the lease liability as of 31 December 2018, measured under IAS 17.
The Company as a lessor
The Company is not required to make any adjustments on transition to IFRS 16 for leases in which it acts as a lessor as IFRS 16 does
not trigger any change on current accounting treatment.
Impacts on financial statements
The Company has presented right-of-use assets within “Property, plant and equipment” and lease liabilities within “Financing liabilities”
and classified the principal portion of lease payments within financing activities and the interest portion within operating activities. Whenmeasuring lease liabilities, the Company discounts lease payments using its incremental borrowing rate at 1 January 2019.
1 January 2019(In € million)

Operating lease commitment at 31 December 2018 as disclosed in the
Company’s consolidated financial statements

1,494

Short-term and low-value leases recognised on a straight-line basis as expenses(29)

Discounted effect using the incremental borrowing rate at 1 January 2019

(113)
330

Finance lease liabilities recognised as at 31 December 2018

1,682

Lease liabilities recognised at 1 January 2019

IFRIC 23 “Uncertainty over Income Tax Treatments”
In May 2017, the IASB issued IFRIC 23 “Uncertainty over Income Tax Treatments”. The interpretation clarifies the recognition andmeasurement requirements when there is uncertainty over income tax treatments. In assessing the uncertainty, an entity shall consider
whether it is probable that a taxation authority will accept the uncertain tax treatment.
The Company adopted the amendment on 1 January 2019 and has elected to apply the limited exemption in IFRIC 23 relating to transition
for classification and measurement, and accordingly has not restated comparative periods in the year of initial application. As aconsequence, any adjustments to the carrying amounts of tax liabilities are recognized at the beginning of the reporting period, with thedifference recognized in opening equity. The impact is € 122 million as at transition date.
In addition, the uncertain tax liabilities formerly included under provisions have been reclassified to current income tax liabilities for € 326
million.

9

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019

Use of Estimates and Judgements
In preparing the Unaudited Condensed Interim IFRS Consolidated Financial Statements, management makes assumptions and estimates.
The underlying assumptions used for the main estimates are similar to those described in the Company’s IFRS Consolidated Financial
Statements as of 31 December 2018. These estimates are revised if the underlying circumstances have evolved or in light of new
information.
The only exception is the estimate of income tax liabilities which is determined in the interim financial statements using the estimatedaverage annual effective income tax rate applied to the pre-tax income of the interim period.

3.

Acquisitions and Disposals

Acquisitions and Disposals
On 1 July 2018, Airbus has taken the control of C Series programme and acquired 50.01% Class A ownership units in to the C Series
Aircraft Limited Partnership “CSALP”, newly named Airbus Canada Limited Partnership (“ACLP”). Bombardier Inc. (“Bombardier”) andInvestissement Québec (“IQ”) own 33.53 % and 16.40 % respectively as at 31 March 2019.
In accordance with IFRS 3 “Business Combinations”, the opening balance sheet of ACLP might vary during the 12 month allocation period
which ends 1 July 2019. The opening balance sheet has not been adjusted in the first three months 2019.
Assets and Disposal Groups Classified as Held for Sale
As of 31 March 2019, the Company accounted for assets and disposal group of assets classified as held for sale in the amount of€ 331 million (prior year-end: € 334 million). Disposal group of liabilities classified as held for sale as of 31 March 2019 amount to€ 323 million (prior year-end: € 432 million). It is mainly related to Alestis Areospace S.L. On 29 March 2019, the Company confirmed theagreement to sell its shares in Alestis Aerospace to Aciturri, a company headquartered in Miranda de Ebro, Spain. The closing of thetransaction is subject to certain conditions' precedent that should be completed in the short term.

4.

Related Party Transactions

The Company has entered into various transactions with related entities; carried out in the normal course of business.

5.

Segment Information

The Company operates in three reportable segments which reflect the internal organisational and management structure according to thenature of the products and services provided.
•

Airbus — Development, manufacturing, marketing and sale of commercial jet aircraft of more than 100 seats; aircraft conversion
and related services; development, manufacturing, marketing and sale of regional turboprop aircraft and aircraft components. It also
includes the holding function of the Company and its bank activities.

•

Airbus Helicopters — Development, manufacturing, marketing and sale of civil and military helicopters; provision of helicopter
related services.

•

Airbus Defence and Space — Military Aircraft design, development, delivery, and support of military aircraft such as combat,
mission, transport and tanker aircraft and their associated services. Space Systems design, development, delivery, and support offull range of civil and defence space systems for telecommunications, earth observations, navigation, science and orbital systems.
Communication, Intelligence and Security provision of services around data processing from platforms, secure communication andcyber security. In addition, the main joint ventures design, develop, deliver, and support missile systems as well as space launcher
systems. Unmanned Aerial Systems design, development, delivery and service support.

The following tables present information with respect to the Company’s business segments. As a rule, inter-segment transfers are carriedout 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. Other activities not allocable to the reportable segments, together with consolidation effects, are disclosed
in the column “Transversal/Eliminations”.
The Company uses EBIT as a key indicator of its economic performance.

10

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019

Business segment information for the three-month period ended 31 March 2019 is as follows:(In € million)

Total revenue
Internal revenue
Revenue
thereof:sales of goods at a point in timesales of goods over time
services, including sales of spare parts
Profit (loss) before financial result and income taxes(EBIT)
thereof research and development expenses
Interest result
Other financial result
Income taxes
Profit for the period

Airbus
9,697
(144)
9,553

AirbusHelicopters
1,007
(104)
903

AirbusDefenceand Space
2,112
(19)
2,093

8,738
5
810

323
56
524

503
936
654

0
0
0

9,564
997
1,988

392
(454)

9
(69)

(117)
(61)

(103)
(70)

181
(654)
(36)
(7)
(94)
44

Airbus
7,222
(166)
7,056

AirbusHelicopters
961
(100)
861

AirbusDefence and
Space
2,217
(15)
2,202

Transversal /Eliminations
0
0
0

Consolidated
Airbus
10,400(281)
10,119

6,395
0
661

341
58
462

709
648
845

0
0
0

7,445
706
1,968

(2)
(430)

(10)
(70)

265
(58)

(54)
(58)

199
(616)
(63)
102
46
284

Transversal / Consolidated
AirbusEliminations
0
12,8160(267)
012,549Business segment information for the three-month period ended 31 March 2018 is as follows:(In € million)

Total revenue
Internal revenue
Revenue
thereof:sales of goods at a point in timesales of goods over time
services, including sales of spare parts
Profit (loss) before financial result and income taxes(EBIT)
thereof research and development expenses
Interest result
Other financial result
Income taxes
Profit for the period

6.

Revenue and Gross Margin

Revenue increased by € +2,430 million to € 12,549 million (first three months 2018: € 10,119 million). The increase is mainly driven byhigher aircraft deliveries at Airbus (€ +2,475 million).
Revenue by geographical areas based on the location of the customer is as follows:
1 January 31 March 2019
4,292
4,531
2,266
758
296
406
12,549(In € million)

EuropeAsia-PacificNorth America
Middle East
Latin America
Other countries
Total

1 January 31 March 2018
3,388
2,636
1,975
1,298
144
678
10,119The gross margin increased by € +306 million to € 1,380 million compared to € 1,074 million in the first three months 2018. It mainlyreflects A320 ramp up at Airbus, partly offset by the impairment charge as a consequence of the temporary suspension of export licences
as described below. The gross margin rate increased from 10.6% to 11.0%.

11

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019

In the first three months of 2019, Airbus has delivered 22 A350 XWB aircraft. New order intakes, cancellations, delivery postponements
and other contractual agreements to the end of March 2019 have been reflected in the financial statements.
The industrial ramp-up is progressing and associated risks continue to be closely monitored in line with the schedule, aircraft performanceand overall cost envelope, as per customer commitments. Despite the progress made, challenges remain with recurring cost convergenceas the ramp-up continues.
As of 31 December 2018, the Company’s largest A380 operator reviewed its aircraft fleet strategy going forward and concluded it is forced
to restructure and reduce its A380 order by 39 aircraft. The Company entered into discussions with the customer in late 2018 which finallyresulted in the signature of a head of agreement on 11 February 2019. Without this customer’s A380 order, the Company has no
substantial order backlog and no basis to sustain A380 production, despite all sales and marketing efforts in recent years. As aconsequence of this decision, deliveries of the A380 will cease in 2021.
At year-end 2018, in view of the above, the Company reassessed accordingly the expected market assumptions and the recoverability
and depreciation method of specific assets allocated to the A380 programme. As a result, the Company impaired specific A380 assets inthe amount of € 167 million, recognised an onerous contract provision for an amount of € 1,257 million and updated the measurement ofrefundable advances including interest accretion for a total amount of € 1,426 million. As a consequence, the recognition of the onerous
contract provision as well as other specific provisions and the remeasurement of the liabilities affected the consolidated income statement
before taxes by a net € 463 million in EBIT and positively impacted the other financial result by € 177 million as of 31 December 2018.
During the first three months 2019, 1 A400M aircraft has been delivered, totalling 75 aircraft as of 31 March 2019. The Company continued
with development activities toward achieving the revised capability roadmap with the achievement of an important development milestone
according to schedule. Retrofit activities are progressing in line with the customer agreed plan.
In 2018, the Company has been working together with OCCAR and concluded the negotiations on a contract amendment following thesignature of a Declaration of Intent (“DOI”) in February 2018 agreeing on a global re-baselining of the contract. The customer Nations arenow set to endorse the agreement to allow pursuing the domestic approval processes with the objective to sign the contract amendment
in the second quarter 2019. In the fourth quarter 2018 an update of the contract estimate at completion has triggered a net additionalcharge of € 436 million. This reflects the outcome of the negotiations, updated estimates on the export scenario during the launch contract
phase of the A400M programme as well as applicable escalation and some cost increases. Risks remain on development of technicalcapabilities and the associated costs, on securing sufficient export orders in time, on aircraft operational reliability in particular with regards
to engines, and on cost reductions as per the revised baseline. The year end 2018 assessment remains unchanged as of 31 March 2019.
The A400M contractual SOC 1, SOC 1.5, SOC 2, SOC 2.5 and SOC 3 development milestones remain to be achieved. SOC 1 fell due
end October 2013, SOC 1.5 fell due end December 2014, SOC 2 end of December 2015 and SOC 2.5 end of October 2017.
The associated termination rights became exercisable by OCCAR on 1 November 2014, 1 January 2016, and 1 January 2017,
respectively. Management judges that it is highly unlikely that any of these termination rights will be exercised as with the upcoming
contract amendment these termination rights will be completely reviewed.
Due to the prolonged suspension of defence export licenses to Saudi Arabia by the German Government, and the consequential inabilityof the Company to execute a customer contract, a € 190 million impairment charge has been recognised mainly on inventories and a€ 107 million financial expense related to hedge ineffectiveness. The Company is engaging with its customer to agree a way forward on
this contract. The outcome of these negotiations is presently unclear but could result in significant further financial risks.

7.

Research and Development Expenses

Research and development expenses increased by € +38 million to € 654 million compared to € 616 million in the first three months
2018. In addition, an amount of € 27 million of development costs has been capitalised, mainly related to Airbus Defence and Space
programmes.

8.

Share of Profit from Investments Accounted for under the Equity
Method and Other Income from Investments

Share of profit from investments under the equity method and other income from investments decreased by € -46 million to € -10
million compared to € 36 million in the first three months 2018.

9.

Other Income and Other Expenses

Other income decreased by € -186 million to € 70 million compared to € 256 million in the first three months 2018, mostly driven by thecapital gain of € 159 million from the sale of Atlanta in 2018.
Other expenses increased by € +12 million to € -21 million compared to € -9 million in the first three months 2018.

12

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 201910.

Total Financial Result

Total financial result deteriorated by € -82 million to € -43 million compared to € 39 million in the first three months 2018. This is mainly
due to the financial expense on hedge ineffectiveness (see “– Note 6: Revenue and Gross Margin”).

11.

Income Taxes

The income tax expense of € -94 million (first three months 2018: € 46 million) corresponds to an effective tax rate of 68.1%(first three months 2018: -19.3%). This includes a deferred tax asset impairment, partially offset by the tax-free revaluation of certain equity
investments under IFRS 9.

12.

Earnings per ShareProfit for the period attributable to equity owners of the parent (Net income)Weighted average number of ordinary shares
Basic earnings per share

1 January 31 March 2019€ 40 million
775,730,957€ 0.05

1 January 31 March 2018
€ 283 million
774,364,786€ 0.37

Diluted earnings per share – The Company’s categories of dilutive potential ordinary shares are share-settled Performance Units relating
to Long-Term Incentive Plans (“LTIP”) and the convertible bond issued on 1 July 2015. During the first three months 2019, the average
price of the Company’s shares exceeded the exercise price of the share-settled Performance Units and therefore 852,316 shares (first
three months 2018: 671,747 shares) were considered in the calculation of diluted earnings per share. The dilutive effect of the convertible
bond was also considered in the calculation of diluted earnings per share in the first three months 2019, by adding back € 2 million ofinterest expense to the profit for the period attributable to equity owners of the parent (first three months 2018: € 2 million) and by including
5,022,990 of dilutive potential ordinary shares.

Profit for the period attributable to equity owners of the parent (Net income),
adjusted for diluted calculation
Weighted average number of ordinary shares (diluted) (1)Diluted earnings per share
(1)

13.

1 January 31 March 2019

1 January 31 March 2018

€ 42 million
781,606,263€ 0.05€ 285 million
780,059,523€0.37

Dilution assumes conversion of all potential ordinary shares.

Intangible Assets and Property, Plant and Equipment

Intangible assets decreased by € -82 million to € 16,644 million (prior year-end: € 16,726 million). Intangible assets mainly relate to
goodwill of € 13,044 million (prior year-end: € 13,039 million).
The annual impairment tests were performed in the fourth quarter 2018 and led to no impairment charge.
Property, plant and equipment increased by € +764 million to € 17,537 million (prior year-end: € 16,773 million), mainly due to theapplication of IFRS 16. Property, plant and equipment includes leased assets of € 117 million (prior-year end: € 45 million).

14.

Investments Accounted for under the Equity Method

Investments accounted for under the equity method decreased by € -95 million to € 1,598 million (prior year-end: € 1,693 million) andmainly include the equity investments in ArianeGroup and MBDA.

13

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 201915.

Other Investments and Other Long-Term Financial Assets(In € million)

Other investments
Other long-term financial assets
Total non-current other investments and other long-term financial assets
Current portion of other long-term financial assets
Total

31 March 2019
2,460
1,598
4,058
406
4,464

31 December 2018
2,267
1,544
3,811
489
4,300

Other investments mainly comprise the Company’s participations. The significant participations at 31 March 2019 include the remaining
investment in Dassault Aviation (Airbus share: 9.89%, prior year-end: 9.89%) amounting to € 1,086 million (prior year-end: € 999 million).
Other long-term financial assets and the current portion of other long-term financial assets include other loans in the amount of€ 1,569 million as of 31 March 2019 (prior year-end: € 1,523 million), and the sales financing activities in the form of finance leasereceivables and loans from aircraft financing.

16.

Inventories

Inventories of € 35,154 million (prior year-end: € 31,891 million) increased by € +3,263 million. This is mainly driven by Airbus (€ +2,813
million), mainly reflecting the inventory build up to support the ramp up and Airbus Helicopters (€ +408 million).

17.

Provisions
31 March 2019
7,809
10,93018,73912,542
6,197(In € million)

Provisions for pensions
Other provisions
Total
thereof non-current portion
thereof current portion

31 December 2018
7,072
11,816
18,888
11,571
7,317

Provisions for pensions increased mainly due to the decrease of the discount rate in Germany, France and the UK during the first threemonths 2019.
Other provisions are presented net of programme losses against inventories (see “– Note 16: Inventories”).
A restructuring provision associated with the re-organisation of the Company of € 160 million was recorded at year-end 2016, following
the communication of the plan to the employees and the European Works Council in November 2016. The French social plan was agreed
between the Company and the works council in June 2017. The German social plan was agreed between the Company and the works
councils in September 2017, and the reconciliation of interests were finalized on 21 February 2018.
In Airbus Helicopters, the restructuring plan launched in 2016 was signed by the three representative trade unions and validated by theWork Administration Agency (DIRECCTE) in March 2017.
Included in other provisions is an estimate of the related net future costs related to the H225 Super Puma accident in 2016.

14

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 201918.

Other Financial Assets and Other Financial Liabilities

Other Financial Assets(In € million)

Positive fair values of derivative financial instruments
OthersTotal non-current other financial assets
Receivables from related companies
Positive fair values of derivative financial instruments
OthersTotal current other financial assets
Total

31 March 2019
925
90
1,015
979
383
594
1,956
2,971

31 December 2018
1,031
77
1,108
1,082
286
443
1,811
2,919

31 March 2019
1,820
2,994
2,778
7,592
1,551
1,602
52
389
3,594
11,18631 December 2018
1,132
4,233
2,644
8,009
1,623
344
175
320
2,462
10,47131 March 2019
774
30
68
872
3,874
448
400
482
5,204
6,076

31 December 2018
777
33
78
888
3,255
464
121
406
4,246
5,134

31 March 2019
421
421
3,635
3,126
6,761
7,182

31 December 2018
460
460
2,706
2,582
5,288
5,748

Other Financial Liabilities(In € million)

Liabilities for derivative financial instruments
European Governments' refundable advances
OthersTotal non-current other financial liabilities
Liabilities for derivative financial instruments
European Governments' refundable advances
Liabilities to related companies
OthersTotal current other financial liabilities
Total

19.

Other Assets and Other Liabilities

Other Assets(In € million)

Cost to fulfil a contract
Prepaid expenses
OthersTotal non-current other assets
Value added tax claims
Cost to fulfil a contract
Prepaid expenses
OthersTotal current other assets
Total

Other Liabilities(In € million)

OthersTotal non-current other liabilities
Tax liabilities (excluding income tax)
OthersTotal current other liabilities
Total
.

15

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 201920.

Total Equity

The Company’s shares are exclusively ordinary shares with a par value of € 1.00. The following table shows the development of thenumber of shares issued and fully paid:
31 March 2019776,367,881
0776,367,881(636,924)
775,730,957(In number of shares)

Issued as at 1 January
Issued for ESOP
Issued at end of period
Treasury shares
Outstanding at end of period

31 December 2018774,556,062
1,811,819
776,367,881(636,924)
775,730,957

Holders of ordinary shares are entitled to dividends and to one vote per share at general meetings of the Company.
Equity attributable to equity owners of the parent (including purchased treasury shares) amounts to € 8,910 million (prior year-end:€ 9,724 million) representing a decrease of € -814 million. This is due to a decrease in other comprehensive income of € -719 million,
principally related to the mark to market revaluation of the hedge portfolio of € -523 million, a change in actuarial gains and losses incomeof € -428 million, partly compensated by a net income for the period of € 40 million.
The non-controlling interests (“NCI”) from non-wholly owned subsidiaries increased to € 3 million as of 31 March 2019(prior year-end: € -5 million). These NCI do not have a material interest in the Company’s activities and cash flows.

21.

Net Cash

The net cash position provides financial flexibility to fund the Company’s operations, to react to business needs and risk profile and toreturn capital to the shareholders.

31 March 2019
5,987
2,422
10,07318,482(2,323)(8,696)
7,463(In € million)

Cash and cash equivalents
Current securities
Non-current securities
Gross cash position
Short-term financing liabilities
Long-term financing liabilities
Total

31 December 2018
9,413
2,132
10,662
22,207(1,463)(7,463)
13,281

The net cash position on 31 March 2019 amounted to € 7,463 (prior year-end: € 13,281 million), with a gross cash position of€ 18,482 million (prior year-end: € 22,207 million).

Cash and Cash Equivalents
Cash and cash equivalents are composed of the following elements:

31 March 2019
1,722
3,290
984
19
6,015
28
5,987

(In € million)

Bank account and petty cash
Short-term securities (at fair value through profit and loss)
Short-term securities (at fair value through OCI)
OthersTotal cash and cash equivalents
Recognised in disposal groups classified as held for sale
Recognised in cash and cash equivalents

31 December 2018
1,862
6,576
984
6
9,428
15
9,413

Only securities with a maturity of three months or less from the date of the acquisition, that are readily convertible to known amounts ofcash and which are subject to an insignificant risk of changes in value, are recognised in cash equivalents.

16

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019

Financing Liabilities
31 March 2019
6,830
270
189
1,349
58
8,696
528
92
53
278
1,372
2,323
11,019(In € million)

Bonds and commercial papers
Liabilities to financial institutions
Loans
Finance lease liabilities
Others (1)Total long-term financing liabilities
Bonds and commercial papers
Liabilities to financial institutions
Loans
Finance lease liabilities
Others (1)Total short-term financing liabilities
Total
(1)

31 December 2018
6,659
267
229
307
1
7,463
0
86
70
23
1,284
1,463
8,926

Included in “others” are financing liabilities to joint ventures.

Long-term financing liabilities, mainly comprising bonds and finance lease liabilities, increased by € +1,233 million to€ 8,696 million (prior year-end: € 7,463 million), mainly due to the application of IFRS 16.
Short-term financing liabilities increased by € +860 million to € 2,323 million (prior year-end: € 1,463 million). The increase in short-term
financing liabilities is mainly related to the issuance of bonds and commercial papers and the application of IFRS 16.

22.

Financial Instruments

The following table presents the composition of derivative financial instruments:
31 December 2018
1,031
286
1,317
(1,132)(1,623)(2,755)(1,438)31 March 2019
925
383
1,308
(1,820)(1,551)(3,371)(2,063)(In € million)

Non-current positive fair values
Current positive fair values
Total positive fair values of derivative financial instruments
Non-current negative fair values
Current negative fair values
Total negative fair values of derivative financial instruments
Total net fair values of derivative financial instruments

The total net fair value of derivative financial instruments decreased by € -625 million to € -2,063 million (prior year-end: € -1,438 million)
as a result of the strengthening of the US dollar versus the euro associated with the mark to market valuation of the hedge portfolio.
The volume of hedged US dollar-contracts was US$ 81.8 billion as at 31 March 2019 (prior year-end: US$ 81.9 billion). The US dollar spot
rate was 1.12 US$/€ and 1.15 US$/€ at 31 March 2019 and at 31 December 2018, respectively. The average US dollar hedge rate for thehedge portfolio of the Company decreased to 1.23 US$/€ as at 31 March 2019 compared to 1.24 US$/€ as at 31 December 2018.

Carrying Amounts and Fair Values of Financial Instruments
Fair values of financial instruments have been determined with reference to available market information at the end of the reporting period
and the valuation methodologies as described in detail in Note 35.2 to the 2018 IFRS Consolidated Financial Statements. For the first
three months 2019, the Company has applied the same methodologies for the fair value measurement of financial instruments. In addition,
the Company has remeasured non-listed equity investments for which no quoted market prices are available at fair value and determined
the fair values of these equity investments using common valuation methods such as net asset values or a comparable company valuation
multiples technique.
Carrying amount is a reasonable approximation of fair value for all classes of financial instruments listed in the first table of Note 35.2 tothe 2018 IFRS Consolidated Financial Statements, with the exception of:
31 March 2019
Book Value
Fair Value(In € million)

Financing liabilities
Bonds and commercial papers
Liabilities to financial institutions and others(7,358)(2,034)17(7,578)(2,037)31 December 2018
Book Value
Fair Value(6,659)(1,937)(6,781)(1,941)

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019

Fair Value Hierarchy
Depending on the extent the inputs used to measure fair values rely on observable market data, fair value measurements may behierarchised according to the following levels of input:•

Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities;•

Level 2: inputs other than quoted prices that are observable for the asset or liability – fair values measured based on Level 2
input typically rely on observable market data such as interest rates, foreign exchange rates, credit spreads or volatilities;•

Level 3: inputs for the asset or liability that are not based on observable market data – fair values measured based on Level 3
input rely to a significant extent on estimates derived from the Company’s’ own data and may require the use of assumptions
that are inherently judgemental and involve various limitations.

The fair values disclosed for financial instruments accounted for at amortised cost reflect Level 2 input. Otherwise, fair values are
determined mostly based on Level 1 and Level 2 input and to a minor extent on Level 3 input.
The following table presents the carrying amounts of the financial instruments held at fair value across the three levels of the fair value
hierarchy:(In € million)

Financial assets measured at fair value
Equity instruments
Derivative instruments
Securities
Cash equivalents
Total
Financial liabilities measured at fair value
Derivative instruments
Other financial liabilities
Total

31 March 2019
Level 1
Level 2

Level 3Total

31 December 2018
Level 1 Level 2 Level 3

Total

1,959
0
10,1183,290
15,367

0
1,186
2,377
984
4,547

501
122
0
0
623

2,460
1,308
12,495
4,274
20,5371,778
010,721
6,576
19,075

0
1,152
2,073
984
4,209

489
165
0
0
654

2,267
1,317
12,794
7,560
23,938000(3,350)0(3,350)(21)(2,331)(2,352)(3,371)(2,331)(5,702)000(2,729)0(2,729)(26)(2,300)(2,326)(2,755)(2,300)(5,055)

The financial liabilities measured at fair value that are classified as Level 3 consist mainly of the written put options on non-controllinginterests resulting from the acquisition of ACLP. There has been no material changes in the valuation of the Level 3 financial instruments
during the first three months 2019.

23.

Litigation and Claims

The Company is involved from time to time in various legal and arbitration proceedings in the ordinary course of its business, the mostsignificant of which are described below. Other than as described below, the Company 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 past significant effects on Airbus SE’s or the Company’s financial position or
profitability.
If the Company concludes that the disclosures relative to contingent liabilities can be expected to prejudice seriously its position in a
dispute with other parties, the Company limits its disclosures to the nature of the dispute.

WTO
Although the Company is not a party, the Company is supporting the European Commission in litigation before the WTO. Following its
unilateral withdrawal from the 1992 EU-US Agreement on Trade in Large Civil Aircraft, the US lodged a request on 6 October 2004 to
initiate proceedings before the WTO. On the same day, the EU launched 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 of Washington to Boeing and other US aerospace firms until 2024.
On 1 June 2011, the WTO adopted the Appellate Body’s final report in the case brought by the US assessing funding to Airbus from
European governments. On 1 December 2011, the EU informed the WTO that it had taken appropriate steps to bring its measures fully
into conformity with its WTO obligations, and to comply with the WTO’s recommendations and rulings. Because the US did not agree,
the matter was referred to the WTO for further review pursuant to WTO rules. A decision was published in May 2018 in which the WTO
clarified that the EU and the Company have achieved compliance in respect of the majority of the subsidies at issue but considered thatsome remaining obligations required minor adjustments, which have since been addressed by the EU. Because the US did not agree on
the EU compliance efforts, the US requested the resumption of Article 22.6 arbitration proceedings to quantify the amount ofcountermeasures against the EU. In September 2018, the US requested an annual amount of countermeasures of US$ 11.2 billion. The
Company considers the US' request unjustified given the measures taken to comply with the Appellate Body decision of May 2018. The
Company has worked with the European Commission and the Member State governments to fully implement the WTO findings in theAppellate Body’s decision and asserts that the new measures taken render the sanctions request moot.
18

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019

On 9 April 2019, the US published for public consultation a preliminary list of products from the EU to which it may seek to apply duties
pursuant to the May 2018 decision, which includes new aircraft and helicopters as well as major components for aircraft manufacturingin the US. The extent to which such duties will be applied will be determined at the conclusion of the Article 22.6 arbitration proceedings.
On 23 March 2012, the WTO adopted the Appellate Body’s final report in the case brought by the EU assessing funding to Boeing fromthe US. On 23 September 2012, the US informed the WTO that it had taken appropriate steps to bring its measures fully into conformity
with its WTO obligations, and to comply with the WTO’s recommendations and rulings. Because the EU did not agree, the matter wasreferred to the WTO for further review pursuant to WTO rules. The Appellate Body published its decision in March 2019 in which the
WTO rejected the US’s arguments and preserved the EU’s win before the panel. The Appellate Body also broadened the scope of the
EU’s victory by finding that additional US federal and state programmes constitute subsidies. Now that the Appellate Body report has
been adopted, the EU may request resumption of an arbitration concerning the amount of annually-recurring countermeasures it ispermitted to take against the importation of US products. On 17 April 2019, the EU published a public consultation on a preliminary listof products from the US on which the EU may take countermeasures.
Exact timing of further steps in the WTO litigation process is subject to further rulings and to negotiations between the US and the EU.
Unless a settlement is reached between the parties, the litigation is expected to continue for several years.

GPT
In August 2012, the UK Serious Fraud Office (“SFO”) announced that it had opened a formal criminal investigation in relation to GPTSpecial Project Management Ltd (“GPT”), a subsidiary operating in Saudi Arabia that the Company acquired in 2007. The investigation
relates to issues initially raised by a whistleblower concerning contractual arrangements originating prior to GPT’s acquisition andcontinuing thereafter. The Company has engaged with the SFO throughout and continues to actively cooperate with the investigation.

Eurofighter Austria
In February 2017, the Austrian Federal Ministry of Defence raised criminal allegations against Airbus Defence and Space GmbH andEurofighter Jagdflugzeug GmbH for wilful deception and fraud in the context of the sale of the Eurofighter aircraft to Austria and respective
damage claims. After the Austrian Federal Ministry of Defence raised its criminal allegations, the Austrian public prosecutor opened aninvestigation against Airbus Defence and Space GmbH, Eurofighter Jagdflugzeug GmbH and former and current employees of the twoentities. The Company has filed several submissions to the Vienna Public Prosecutor in response to the allegations of deception in the
procurement of Eurofighter combat aircraft made by the Austrian Defence Minister. The Company is cooperating fully with the authorities.

Investigation by the UK SFO and France’s PNF and Related Commercial Litigation
In the context of review and enhancement of its internal compliance improvement programme, the Company discovered misstatements
and omissions relating to information provided in respect of third party consultants in certain applications for export credit financing for theCompany’s customers. In early 2016, the Company informed the UK, German and French Export Credit Agencies (“ECAs”) of theirregularities it had discovered. The Company made a similar disclosure to the UK Serious Fraud Office (“SFO”). In August 2016, the SFO
informed the Company that it had opened an investigation into allegations of fraud, bribery and corruption in the civil aviation business ofAirbus relating to irregularities concerning third party consultants (business partners). In March 2017, France’s Parquet National Financier(“PNF”) informed the Company that it had also opened a preliminary investigation into the same subject and that the two authorities would
act in coordination going forward. The Company is cooperating fully with both authorities including in respect of potential issues acrossthe Company's business. As part of the Company's engagement with the US authorities, the latter have requested information relating toconduct forming part of the SFO/PNF investigation that could fall within US jurisdiction. The Company is cooperating with the US
authorities in close coordination with the SFO and PNF. The investigations and any penalties potentially levied as a result could havenegative consequences for the Company. The potential imposition of any monetary penalty (and the amount thereof) or other sanction
including tax liability arising from the investigations will depend on the ultimate factual and legal findings of the investigation, and could
have a material impact on the financial statements, business and operations of the Company. However, at this stage it is too early todetermine the likelihood or extent of any such possible consequence. Investigations of this nature could also result in (i) civil claims or
claims by shareholders against the Company (ii) adverse consequences on the Company’s ability to obtain or continue financing for
current or future projects (iii) limitations on the eligibility of group companies for certain public sector contracts and/or (iv) damage to theCompany’s business or reputation via negative publicity adversely affecting the Company’s prospects in the commercial market place.
In light of these investigations, the Company enhanced certain of its policies, procedures and practices, including ethics and complianceand export control. The Company has revised and implemented improved procedures, including those with respect to its engagement ofconsultants and other third parties, in particular in respect of sales support activities. The Company believes that these enhancements to
its controls and practices will best position it for the future, particularly in light of advancements in regulatory standards. Several consultants
and other third parties have initiated commercial litigation and arbitration against the Company seeking relief. The enhancement of its
controls and practices has led to additional commercial litigation and arbitration against the Company and may lead to other civil law orcriminal law consequences in the future, which could have a material impact on the financial statements, however at this stage it is too
early to determine the likelihood or extent of any liability.

ECA Financing
The Company and the ECAs reached agreement on a process under which it is able to resume making applications for ECA-backed
financing for its customers across the Company on a case-by-case basis for a limited number of transactions.

19

Airbus SE
Unaudited Condensed Interim IFRS Consolidated Financial Information
for the three-month period ended 31 March 2019

Other Investigations
The Company is cooperating fully with the authorities in a judicial investigation in France related to Kazakhstan. In this spirit, the Company
asked to be interviewed by the investigating magistrates and has been granted the status of “assisted witness” in the investigation.
The Company is cooperating with French judicial authorities pursuant to a request for mutual legal assistance made by the governmentof Tunisia in connection with historical aircraft sales.
Following a review of its US regulatory compliance procedures, the Company discovered and subsequently informed relevant US
authorities of its findings concerning certain inaccuracies in filings made with the US Department of State pursuant to Part 130 of the US
International Traffic in Arms Regulations (“ITAR”) (a US export control regulation). The Company is cooperating with the US authorities.
The Company is unable to reasonably estimate the time it may take to resolve the matter or the amount or range of potential loss, penalty
or other government action, if any, that may be incurred in connection with this matter.

Other Disputes
In May 2013, the Company was notified of a commercial dispute following the decision taken by the Company to cease a partnership forsales support activities in some local markets abroad. Following several successive suspensions of the arbitration, the parties haveagreed to terminate the proceedings and discuss a possible settlement when related investigations are completed.
In the course of another commercial dispute, the Company received a statement of claim by the Republic of China (Taiwan) alleging
liability for refunding part of the purchase price of a large contract for the supply of missiles by subsidiary Matra Défense S.A.S., which
the customer claims it was not obliged to pay. An arbitral award was rendered on 12 January 2018 with a principal amount of € 104 million
plus interest and costs against Matra Défense S.A.S. Post-award proceedings are currently underway.

24.

Number of Employees
Airbus82,19180,92431 March 201931 December 201825.

Events after the Reporting Date

There are no significant events after the reporting date.

20

Airbus Airbus Defence
Helicopters
and Space
19,76833,50919,74533,002

Consolidated
Airbus135,468
133,671