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Flying ahead
l ANNUAL REPORT 2015 l

Table of contents

  • Page 1
    Flying ahead l ANNUAL REPORT 2015 l

  • Page 2
    ... with the Chief Executive Officer /16 Group Executive Committee /18 Interview with the Chief Financial Officer /20 Airbus /22 Airbus Helicopters /24 Airbus Defence and Space /26 Corporate Social Responsibility /28 Innovation Highlights /30 Share Information REGISTRATION DOCUMENT FINANCIAL STATEMENTS

  • Page 3
    AIRBUS GROUP ANNUAL REPORT 2015 l 01 l Flying ahead At Airbus Group, 'we make it fly' is our motto. Day in and day out, the Company's men and women deliver more than just products. They make a difference to our customers through innovative solutions, game-changing engineering, manufacturing ...

  • Page 4
    ...GROUP ANNUAL REPORT 2015 l 02 l Innovation H160 H160 A game-changing design in the helicopter market Flight testing of the highly innovative H160 helicopter got underway during 2015, paving the way for its planned entry-into-service in 2018. The aircraft raises the standards for performance, cost...

  • Page 5
    AIRBUS GROUP ANNUAL REPORT 2015 l 03 l Where breakthroughs come from A320neo A320neo Technical advances offer airlines greater efficiency Following a rigorous flight testing programme, the A320neo (new engine option) received type certification from safety authorities in Europe and the U.S. ...

  • Page 6
    ... ANNUAL REPORT 2015 l 04 l Disruption ONEWEB ONEWEB Bringing the web to the whole world Half the world currently has no way to connect to the Internet. Under a pioneering business model, Airbus Group has teamed up with OneWeb to provide an affordable Internet connection for everyone by developing...

  • Page 7
    ...core businesses. It is pursuing opportunities for technological, manufacturing and process disruption with a goal of disrupting both the Group and the industry. In early 2016, A3 undertook a pilot project for an on-demand transportation service using Airbus Group helicopters. Airbus Ventures was set...

  • Page 8
    ...the Group's strategy to further increase its international industrial footprint, including in North America. The US $ 600 million, 53-acre facility at the Mobile Aeroplex at Brookley shows Airbus' significant commitment to the U.S. - which is the largest market in the world for single-aisle aircraft...

  • Page 9
    ... aircraft per month from 2017. These rate increase decisions are supported by the record Airbus backlog and supply chain commitments. With certification of the A320neo achieved in November 2015 and the first delivery following in January, Airbus prepared the ground for its production ramp-up in 2016...

  • Page 10
    AIRBUS GROUP ANNUAL REPORT 2015 l 08 l Engagement LEADERSHIP UNIVERSITY LEADERSHIP UNIVERSITY Prioritising leadership development The Leadership University creates opportunities for all leaders and aspiring leaders to develop, connect and share, reflect and learn, innovate and support a culture ...

  • Page 11
    ... Group is able to intervene with support at every phase of a disaster and as part of its efforts to support the humanitarian community, the Airbus Foundation carried out a number of relief operations in 2015 using the Company's products and services. As the first major contribution from the Defence...

  • Page 12
    AIRBUS GROUP ANNUAL REPORT 2015 l 10 l Key Figures 2015 ORDER INTAKE (1) â,¬ 159.0 bn 2014 l â,¬ 166.4 bn l - 4% ORDER BOOK(1) EARNINGS PER SHARE (2) REVENUES â,¬ 64.5 bn 2014 l â,¬ 60.7 bn l EBIT* 2014 â,¬ 3.43 2014 l â,¬ 2.99 l + 15% â,¬ 1,005.9 bn 2014 l â,¬ 857.5 bn l + 17% + 6% ...

  • Page 13
    ... GROUP ANNUAL REPORT 2015 l 11 l 2015 2015 RESULTS Airbus Group reported solid 2015 results with its guidance achieved for all key performance indicators, reflecting continued operational improvement. Airbus received 1,080 net commercial aircraft orders. 136,574 2014 l 138,622 l NET CASH POSITION...

  • Page 14
    ... Company continues to make sound progress on numerous fronts, operational and strategic, but also from a governance perspective. On the operational side, management's sharp focus on programme execution is paying off. In 2015, commercial aircraft deliveries reached a new record of 635 units, the A380...

  • Page 15
    ... ANNUAL REPORT 2015 l 13 l BOARD OF DIRECTORS AS OF 1 JANUARY 2016 Our Company continues to make sound progress, also from a governance perspective Denis Ranque Chairman of the Board of Directors Denis Ranque Chairman of the Board of Directors of Airbus Group Tom Enders Chief Executive Officer...

  • Page 16
    ...year and this record backlog certainly supports our decision to raise the single-aisle production rate to 60 jets a month in mid-2019. In 2015, we also progressed in our other businesses. At Helicopters, we successfully defended our leading position despite very tough market conditions. We have been...

  • Page 17
    ...advance the military functionalities, control costs and improve operational reliability. Despite the progress made in 2015, the A400M continues to be challenging. It's the number one priority for Defence and Space. Apart from programme execution and continuous operational improvement, the main focus...

  • Page 18
    AIRBUS GROUP ANNUAL REPORT 2015 l 16 l AS OF 1 JANUARY 2016 Flying with a clear heading Group Executive Committee 05 13 08 11 04 09 10 02 THE BELUGA Five Beluga aircraft transport large components between Airbus' production sites in Europe with over 60 flights a week. A larger version, known as ...

  • Page 19
    AIRBUS GROUP ANNUAL REPORT 2015 l 17 l 01 TOM ENDERS Airbus Group Chief Executive Officer 02 03 FERNANDO ALONSO Airbus Defence and Space Head of Military Aircraft FRANÇOIS AUQUE Airbus Defence and Space Head of Space Systems 04 05 THIERRY BARIL Airbus Group and Airbus Chief Human Resources...

  • Page 20
    ... in particular the A380, which is now at break-even. At Helicopters, lower delivery volumes were compensated by our services business and progress on the transformation plan. The improvement at Defence and Space reflects strong programme execution across all business lines and transformation efforts...

  • Page 21
    ... to rate 60 on the single-aisle in 2019 and back to 7 per month on the A330 in 2017. Deferral activity is normal and net cancellations are at a very low level. Despite a difficult market environment linked to global softness and weaker oil and gas, Airbus Helicopters defended its market position. We...

  • Page 22
    ... of production at current rates. In value terms the backlog was worth â,¬ 952.5 billion at list prices. With 635 new aircraft delivered to 85 customers, Airbus also beat its previous delivery record set in 2014, and succeeded in increasing deliveries for the 13th year in a row. In 2015, 491 A320...

  • Page 23
    AIRBUS GROUP ANNUAL REPORT 2015 l 21 l A350 XWB 1,080 NET ORDERS (IN UNITS) 57% MARKET SHARE (BY NET ORDERS) 6,831 AIRCRAFT ORDER BOOK (IN UNITS) 635 DELIVERIES 1ST US MANUFACTURING FACILITY OPENS KEY FINANCIAL FIGURES in â,¬ million Order Intake (net) Order Book Revenues EBIT* R&D ...

  • Page 24
    ...KEY PRIORITIES for 2016 Airbus Helicopters will pursue the execution of its strategy in 2016 by: • Improving further, based on 2015's successes, the fleet availability of our customers, timely deliveries of spares, and operational costs. • Ensuring the entry-into-service of new variants such as...

  • Page 25
    AIRBUS GROUP ANNUAL REPORT 2015 l 23 l H175 395 ROTORCRAFT DELIVERED 333 NET ORDERS BOOKED H160 FIRST FLIGHT 831 ORDER BOOK (IN UNITS) 45% SHARE OF CIVIL AND PARAPUBLIC MARKET KEY FINANCIAL FIGURES in â,¬ million Order Intake (net) Order Book Revenues EBIT* R&D expenses 2015 6,168 11,769 ...

  • Page 26
    ... 19 light and medium transport aircraft. PROGRESS ON A400M PROGRAMME During 2015, the A400M industrial situation improved even if challenges remain on delivering military capabilities and controlling associated costs during the ramp-up phase. 2015 saw the first export customer delivery to Malaysia...

  • Page 27
    ... +18.1% (1) EXTERNAL REVENUES BY ACTIVITY (Platforms / Services split) REVENUES BY BUSINESS LINES 10% 41% 74% Platforms 26% Services Electronics CIS (3) Space Systems Military Aircraft (3) Communications, Intelligence & Security -0.5% (2) +0.4% +82.2% -4.4% 20% 29% (1) On a constant perimeter...

  • Page 28
    AIRBUS GROUP ANNUAL REPORT 2015 l 26 l Corporate Social Responsibility Airbus Group is a signatory to the United Nations Global Compact (UNGC) and believes in the capacity of the private sector to make the world a better place. The Group supports the Sustainable Development Goals launched by the ...

  • Page 29
    ... the means of implementation and revitalize the global partnership for sustainable development Airbus supports the civil aviation sector's agreement on a 'CO2 standard' for aircraft technology announced by the UN's International Civil Aviation Organisation ICAO. The Group also suppor ts ICAO's work...

  • Page 30
    ... REPORT 2015 l 28 l Innovation Highlights SATELLITE MILESTONE ELECTRIC FLIGHT Developed in an Airbus Group-led European programme, the E-Fan demonstrator was designed from the outset specifically for electric power - a world first. In July 2015, the E-Fan became the first all-electric aircraft...

  • Page 31
    ... processes are being speeded up. Through its network of business incubators and innovation centres, Airbus Group is working with start-ups and academia to explore new business models, such as a pilot project for on-demand air transportation. Airbus and Autodesk have unveiled the world's largest...

  • Page 32
    ... by the European Central Bank towards the end of January 2015, and Airbus Group's announcement in February of a production rate increase within the single-aisle programme to 50 aircraft per month by 2017. The positive trend continued until the middle of the year, when a period of turbulence set in...

  • Page 33
    Registration Document l 2015 l AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 01 l

  • Page 34
    ... commitments made by the Company to securities and market authorities, are described in this Registration Document (the "Registration Document"). On 27 May 2015 at the Annual General Meeting of Shareholders (the "AGM") of Airbus Group N.V., the conversion into a European Company was approved with...

  • Page 35
    ... Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Registration Document l 2015 l Risk Factors 1 2 Information on Group Activities Management's Discussion and Analysis of Financial Condition and Results of Operations General Description of the Company and its Share Capital...

  • Page 36
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 02 Risk Factors 1. 2. 3. 4. Financial Market Risks Business-Related Risks Legal Risks Industrial and Environmental Risks 07 08 12 19 21 Management's Discussion and...

  • Page 37
    ...3.2.1 Issued Share Capital 3.2.2 Authorised Share Capital 3.2.3 Modification of Share Capital or Rights Attached to the Shares 3.2.4 Securities Granting Access to the Company's Share Capital 3.2.5 Changes in the Issued Share Capital 4.2 Interests of Directors and Principal Executive Officers 130...

  • Page 38
    Risk Factors l 2015 l X FACTORS RISK AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 06 l

  • Page 39
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Risk Factors 1. 2. 3. 4. Financial Market Risks Business-Related Risks Legal Risks Industrial and Environmental Risks 08 12 19 21 AIRBUS ...

  • Page 40
    ...Financial Market Risks Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 The Company is subject to many risks and uncertainties that may affect its financial performance. The business, results of operation or financial...

  • Page 41
    ...the market to finance aircraft purchases or change in operating costs or weak levels of passenger demand for air travel and cargo activity more generally; an increase in the amount of sales financing that the Company must provide to its customers to support aircraft purchases, thereby increasing its...

  • Page 42
    ... of the financed aircraft in the resale market. The Company's sales financing arrangements expose it to aircraft value risk, because it generally retains security interests in aircraft for the purpose of securing customers' performance of their financial obligations to the Company, and/or because...

  • Page 43
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Risk Factors 1 Financial Market Risks future sales growth depending on the agreement reached with customers. Despite the measures taken by...

  • Page 44
    ... of operation and financial condition. The commercial helicopter market could also be influenced by a number of factors listed above and in particular with the significant drop of the price of oil in 2015, the Company is impacted by a postponement of investments in the acquisition of new platforms...

  • Page 45
    ... are the main types of risk that the Company may face in this category. The risk to the availability and integrity of our industrial control systems, manufacturing processes and products is growing, with the increase of interconnectivity and digitalization, and with a growing gap developing between...

  • Page 46
    ...meet the agreed upon delivery schedules for such new aircraft (including helicopters). The Company's ability to further increase its production rate will be dependent upon a variety of factors, including execution of internal performance plans, availability of raw materials, parts (such as aluminium...

  • Page 47
    ... Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Risk Factors 2 Business-Related Risks Technologically Advanced Products and Services The Company offers its customers products and services...

  • Page 48
    ...of many products for the foreseeable future. Major Research and Development Programmes The business environment in many of the Company's principal operating business segments is characterised by extensive research and development costs requiring significant up-front investments with a high level of...

  • Page 49
    ... programmes may vary significantly. In particular, the Company's cost reduction measures are based on current conditions and do not take into account any future cost increases that could result from changes in its industry or operations, including new business developments, wage and cost increases...

  • Page 50
    ... development of in-service support goods and services as well as providing high levels of service for integrated logistic support. Industrial efficiency, military capability and associated costs remain a challenge during the ramp up phase. Management is working with the customers to agree a schedule...

  • Page 51
    ... holder or is involved in the day-to-day management. Product Liability and Warranty Claims The Company designs, develops and produces a number of high profile products of large individual value, particularly civil and military aircraft and space equipment. The Company is subject to the risk of...

  • Page 52
    ... Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Export Controls Laws and Regulations The export market is a significant market for the Company. In addition, many of the products the Company designs and manufactures...

  • Page 53
    ... costs to prevent, control, eliminate or reduce emissions to the environment, waste management, the content of the Company's products, and reporting and warning obligations. Moreover, new laws and regulations, the imposition of tougher licence requirements, increasingly strict enforcement or new...

  • Page 54
    Chapter X 1. FACTORS RISK AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 22 l

  • Page 55
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 1. Information on Group Activities 1.1 Presentation of the Group 1.1.1 Overview 1.1.2 Airbus 1.1.3 Airbus Helicopters 1.1.4 Airbus Defence...

  • Page 56
    ... and defence company and one of the largest aerospace and defence companies in the world. In terms of market share, the Group is among the top two manufacturers of commercial aircraft, civil helicopters, commercial space launch vehicles and missiles, and a leading supplier of military aircraft...

  • Page 57
    ... 13% of its total business. The ongoing acquisition of Navtech aims at supporting our strategy by strengthening our offering of flight operations solutions. Cooperation with military customers is set to increase substantially through maintenance and support services thanks to the new platforms to be...

  • Page 58
    ... Defence and Space is composed of four Business Lines: Military Aircraft; Space Systems; Communications, Intelligence & Security (CIS); and Electronics. It develops and engineers cutting-edge products in the field of defence and space, enabling governments, institutions and commercial customers...

  • Page 59
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Information on Group Activities 1.1 Presentation of the Group Summary Financial and Operating Data The following tables provide summary ...

  • Page 60
    ... and the A320neo (new engine option) is one of many product upgrades to the A320 Single-Aisle Family to maintain its position as the most advanced and fuel-efficient single-aisle aircraft family. Airbus is also currently pursuing (i) development and production on the A350 XWB programme, and (ii...

  • Page 61
    ... of 2015, Airbus' commercial backlog stood at 6,831 aircraft, representing more than ten years of production at current rates. Through careful backlog management, close monitoring of the customer base and a prudent approach to production increases, Airbus has successfully increased annual deliveries...

  • Page 62
    ...the Group Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 significant demand between the major hub cities, which are often among the world's largest urban centres (such as London, Paris, New York and Beijing). Airbus...

  • Page 63
    ... Family has captured 60% of the market. The first A320neo has been delivered in January 2016 to launch customer Lufthansa. In October 2015, Airbus announced the decision to further increase the production rate of the Single Aisle Family to 60 aircraft a month in mid-2019, following thorough studies...

  • Page 64
    ... is Airbus' A330neo (new engine option), comprising the A330-800neo and A330900neo versions. These aircraft incorporate latest generation Rolls-Royce Trent 7000 engines. The first delivery is scheduled for end 2017. In 2015, Airbus received 52 net orders for the A330neo. The platform for developing...

  • Page 65
    ... development. One recent step in implementing this strategy is the creation of a 100% Airbus subsidiary company named SATAIR Group: a world leading supplier of aircraft parts and service solutions for aircraft maintenance. The merger of the state-of-the-art service & support portfolios manager...

  • Page 66
    .... The programme management works closely with the plants to secure delivery of aircraft sections to the final assembly lines on time, cost and quality. A new Airbus A320 Family final assembly line was constructed in Mobile, Alabama (US) and started production in 2015, with a first delivery of...

  • Page 67
    ...all major European aircraft development programmes, such as the commercial Airbus aircraft families, the A400M military transport aircraft programme and the Eurofighter Typhoon. It plays a significant role in the design of new concepts in such fields as carbon composite technologies. Production The...

  • Page 68
    ... priority placed on customer satisfaction. Airbus Helicopters is a global leader in the civil and military rotorcraft market, offering one of the most complete and modern ranges of helicopters and related services. This product range currently includes light single-engine, light twin-engine, medium...

  • Page 69
    ...% of the worldwide market share-based on deliveries, the versatility and reliability of Airbus Helicopters products have made them the preferred choice of the most prominent civil and parapublic customers (turbine helicopters over a 1.3t MAUW). The world's largest offshore operators (such as Bristow...

  • Page 70
    ... of the Group Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Products and Services Airbus Helicopters offers a complete range of helicopters that covers nearly the entire civil and military market spectrum, which...

  • Page 71
    ... the world. Airbus Defence and Space solutions guarantee sovereignty in foreign affairs and defence matters. See "- 1.1.1 Overview" for an introduction to Airbus Defence and Space. Airbus Defence and Space in 2015 comprised the four Business Lines Military Aircraft, Space Systems, Communications...

  • Page 72
    ... core business. Military Aircraft. Airbus Defence and Space is capitalising on its strong market position in transport, mission and combat aircraft and related services. In heavy transport, the focus will be on completing the development and delivery the A400M airlifter to its launch customers while...

  • Page 73
    ... 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Information on Group Activities 1.1 Presentation of the Group Competitors The market for military aircraft is dominated by large- and medium-sized American and European companies capable of complex system...

  • Page 74
    ... to a customer country's border security. In the area of large-scale border security systems, it can be considered as the world leader. Airbus Defence and Space is also a leading provider of consulting services for products of cyber security. The market growth is driven by an exponential increase of...

  • Page 75
    ...In the defence business cluster, customers are military and security forces worldwide in a market headed by big US players. It is the world leader in missile warning systems and the German sensor house with a major position in the radar, optronics and electronic warfare markets. Concerning the space...

  • Page 76
    ..., flight management, fleet management and ground services to enable the Royal Air Force to fly air-to-air refuelling and transport missions worldwide. Customer services go beyond the fleet of aircraft currently in production at Airbus Defence and Space, conducting upgrade programmes for aircraft...

  • Page 77
    ... implements secure fixed, tactical, theatre and mobile information infrastructure solutions, including all of the services needed to support integrated mission systems and solutions. Airbus Defence and Space is also a designer and supplier of C4I systems (Command, Control, Communications, Computers...

  • Page 78
    ... of the Group Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Geo-Intelligence. Airbus Defence and Space is a provider of both optical and radar-based geo-information services to customers including international...

  • Page 79
    ... advanced solutions to customers in the commercial, homeland security, aerospace and defense markets. Since its creation in 2003, Airbus Group, Inc. (formerly EADS North America) has been selected in key competitions for military aircraft and systems. Airbus Group, Inc.'s presence in the US defence...

  • Page 80
    ... 1.1 Presentation of the Group Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 1.1.6 Investments Dassault Aviation As of 31 December 2015, Airbus Group held 23.60% of Dassault Aviation's share capital (and 24.71...

  • Page 81
    ... billion for product liability claims. Certain sub-limits are applicable for the insurance policies outlined above. Group employee-related insurance policies cover risks such as: 1. The Company's Corporate Insurance Risk Management ("IRM") is part of Airbus Group's Global Financial Service Unit...

  • Page 82
    ... on Group Activities 1.1 Presentation of the Group Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 1.1.8 Legal and Arbitration Proceedings On 23 March 2012, the WTO adopted the Appellate Body's final report in...

  • Page 83
    ...collaborations that help Airbus Group develop new products, services, business models, methods, tools and manufacturing processes for maintaining the Company's competitiveness and leadership into the future. Positioning Airbus Group for the future Airbus Group's technological expertise is essential...

  • Page 84
    ... of the Group Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 A Lean, Agile Network for Global Innovation Airbus Group Innovations - the Company's global research and technology network - is managed by the...

  • Page 85
    ...Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Information on Group Activities 1.1 Presentation of the Group Key Priorities for 2016 With guidance from the CTO, Airbus Group's overall research and technology efforts will play a significant role in all of the Company's 2016...

  • Page 86
    Q Information on Group Activities 1.1 Presentation of the Group Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Environmental performance KPI Total energy consumption (excluded electricity generated by CHP on site ...

  • Page 87
    ... Headquarters, Shared Services and Innovation Works. (2) The former reportable segments Cassidian, Astrium and Airbus Military form the new reportable segment Airbus Defence and Space as of 1 January 2014. Employees by geographic area France Germany Spain UK US Other Countries 31 December 2015 50...

  • Page 88
    ... data is available at Group level. For more details on Scope and Methodology, please refer to the Airbus Group website at http://www.airbusgroup.com (Investors & Shareholders > Publications > Annual Reports and Registration Documents). 1.2 Recent Developments In January 2016, the Silicon Valley...

  • Page 89
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Information on Group Activities 1.2 Recent Developments Airbus Group SE has informed relevant UK authorities of its findings concerning ...

  • Page 90
    Chapter X 2. FACTORS RISK AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 58 l

  • Page 91
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 2.1 Operating and Financial Review 2.1.1 Overview ...

  • Page 92
    ... 31 December 2015, 2014 and 2013 incorporated by reference herein. These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board as endorsed by the European Union, and with Part 9 of Book...

  • Page 93
    ...reportable segments: â- â- Significant Programme Developments, Restructuring and Related Financial Consequences in 2013, 2014 and 2015 â- â- â- â- Airbus: development, manufacturing, marketing and sale of commercial jet aircraft of more than 100 seats; aircraft conversion and related services...

  • Page 94
    ... eleven A400M aircraft were delivered in 2015, resulting in twentyâ€'one cumulative deliveries up to 31 December 2015. Industrial efficiency and military capability remain a challenge during the rampâ€'up phase. Management is working with the customers to agree a schedule of military capability...

  • Page 95
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Management's Discussion and Analysis of Financial Condition and Results of Operations 2.1 Operating and Financial Review 2.1.2 ...

  • Page 96
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Management's Discussion and Analysis of Financial Condition and Results of Operations 2.1 Operating and Financial Review 2.1.3 2.1.3.1 Airbus Performance Measures ...

  • Page 97
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Management's Discussion and Analysis of Financial Condition and Results of Operations 2.1 Operating and Financial Review CONSOLIDATED ...

  • Page 98
    ...lower deliveries were compensated by higher services activities, a favourable mix and progress on the Division's transformation plan. Airbus Defence and Space's EBIT* increased by 82.2% from â,¬ 409 million for 2014 to â,¬ 745 million for 2015 driven by strong programme execution across the business...

  • Page 99
    ... for 2014, mainly due to higher aircraft deliveries (629 deliveries in 2014, as compared to 626 deliveries in 2013), continued operational improvements including A380 progress towards breakeven and a favourable evolution of maturing hedges, partially offset by increased A350 XWB support costs. In Q4...

  • Page 100
    ... increased by 5.5%, from â,¬ 57.6 billion for 2013 to â,¬ 60.7 billion for 2014. Airbus Set forth below is a breakdown of deliveries of commercial aircraft by product type for the past three years. Number of aircraft Singleâ€'aisle Longâ€'range A350 XWB Very large Year ended 31 December 2015...

  • Page 101
    ... by military aircraft with eight A400M deliveries in total to four nations and by space systems with six Ariane 5 launches during the year. 2.1.4.2 Consolidated Cost of Sales Consolidated cost of sales increased by 7.4% from â,¬ 51.8 billion for 2014 to â,¬ 55.6 billion for 2015. The increase was...

  • Page 102
    ... the H160 and Single Aisle NEO programmes. Please refer to "2.1.2.2 Capitalised development costs". Consolidated research and development expenses increased by 8.8%, from â,¬ 3.1 billion for 2013 to â,¬ 3.4 billion for 2014, primarily reflecting R&D activities at Airbus. The main contribution to the...

  • Page 103
    ...controlling interests Capital increase Equity transactions (IAS 27) Share buyâ€'back Shareâ€'based payment (IFRS 2) Convertible bond 7,079 2,698 (2,649) 277 (948) 142 56 (487) 29 53 Balance as at 31 December 2015 5,973 Please refer to the "Airbus Group SE IFRS Consolidated Financial Statements...

  • Page 104
    ... 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Management's Discussion and Analysis of Financial Condition and Results of Operations 2.1 Operating and Financial Review 2.1.5.1 Cash Flow Hedge Related Impact on AOCI Positive preâ€'tax mark to market values...

  • Page 105
    ...Group generally finances its manufacturing activities and product development programmes, and in particular the development of new commercial aircraft, through a combination of flows generated by operating activities, customer advances, riskâ€'sharing partnerships with subâ€'contractors and European...

  • Page 106
    ..., the main net contributor to the negative working capital variation was the change in inventory (â,¬ â€'3.3 billion) reflecting inventory growth at Airbus especially due to investment in programmes to support both production and development, particularly for the A350 XWB and Single Aisle programmes...

  • Page 107
    ...third parties. The financial markets remain unpredictable, which may cause the Group to increase its future outlays in connection with customer financing of commercial aircraft and helicopters, mostly through finance leases and secured loans and if deemed necessary through operating lease structures...

  • Page 108
    ... risk management." 2.2 Financial Statements The IFRS Consolidated Financial Statements and the Company Financial Statements of Airbus Group SE for the year ended 31 December 2015, together with the related notes, appendices and Auditors' reports, shall be deemed to be incorporated in and form part...

  • Page 109
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Management's Discussion and Analysis of Financial Condition and Results of Operations 2.4 Information Regarding the Statutory Auditors 2.3...

  • Page 110
    Chapter X 3. FACTORS RISK AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 78 l

  • Page 111
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.1 General Description of the Company 3.1.1 Commercial and Corporate Names, Seat ...

  • Page 112
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.1 General Description of the Company 3.1 General Description of the Company 3.1.1 Commercial and Corporate...

  • Page 113
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.1 General Description of the Company French Regulations In accordance with the ...

  • Page 114
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.1 General Description of the Company Pursuant to the Spanish securities rules and regulations, the Company...

  • Page 115
    ... 10% of the total issued share capital of the Company. The Annual General Meeting of Shareholders of the Company is held within six months of the end of the financial year. The Board of Directors must give notice of Shareholders' Meetings through publication of a notice on the Company's website (www...

  • Page 116
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.1 General Description of the Company is currently the 28th day prior to the day of the Shareholders' ...

  • Page 117
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.1 General Description of the Company If at the end of a calendar year the ...

  • Page 118
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.1 General Description of the Company of the Company and the competent financial market authorities with ...

  • Page 119
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.2 General Description of the Share Capital rights and shares including the ...

  • Page 120
    ...ii) for an aggregate issue price in excess of â,¬ 500 million per share issuance. At the AGM held on 27 May 2015, the Board of Directors was authorised, for a period of 18 months from the date of such AGM, to repurchase shares of the Company, by any means, including derivative products, on any stock...

  • Page 121
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.2 General Description of the Share Capital 3.2.4 Securities Granting Access to ...

  • Page 122
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.3 Shareholdings and Voting Rights 3.3 Shareholdings and Voting Rights 3.3.1 Shareholding Structure at the ...

  • Page 123
    .... For the number of shares and voting rights held by Members of the Board of Directors and Group Executive Committee, see "- Corporate Governance - 4.2.1 Remuneration Policy". Approximately 2.01% of the share capital (and voting rights) was held by the Company's employees as of 31 December 2015...

  • Page 124
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.3 Shareholdings and Voting Rights Loss of Individual Grandfathering Rights A Party holding Individual ...

  • Page 125
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.3 Shareholdings and Voting Rights a decision of the Shareholders' Meeting of ...

  • Page 126
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.3 Shareholdings and Voting Rights German State has the right to approve or disapprove of - but not to ...

  • Page 127
    ...Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.3 Shareholdings and Voting Rights 3.3.4 Changes in the Shareholding of the Company...

  • Page 128
    ... Airbus Helicopters Airbus Group North America Airbus Operations, S.L. (Spain) Paradigm Secure Communications Limited (UK) 3 MBDA Group Paradigm Services Limited (UK) *Airbus Group owns indirectly 50% of ATR GIE and 37.50% of MBDA Group. 4 Financial Financial Statements Statements 2015 2015...

  • Page 129
    ...Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.3 Shareholdings and Voting Rights 3.3.7 Purchase by the Company of its Own Shares...

  • Page 130
    ... as set out in the financial statements of the Company, from which the repurchase price for the treasury shares must be deducted. The Company undertakes to maintain at any time a sufficient number of shares in public hands to meet the thresholds of NYSE Euronext, AIRBUS GROUP REGISTRATION...

  • Page 131
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.4 Dividends â- â- â- â- shares may be bought or sold at any time (including...

  • Page 132
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.4 Dividends 3.4.4 Taxation The statements below represent a broad analysis of the current Netherlands tax ...

  • Page 133
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 General Description of the Company and its Share Capital 3.4 Dividends Value Added Tax No Netherlands value added tax is imposed on ...

  • Page 134
    Chapter X 4. FACTORS RISK AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 102 l

  • Page 135
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Corporate Governance 4.1 Management and Control 4.1.1 Corporate Governance Arrangements 4.1.2 Dutch Corporate Governance Code, "Comply or ...

  • Page 136
    Q Corporate Governance 4.1 Management and Control Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 4.1 Management and Control The corporate governance arrangements of the Company were substantially changed pursuant to...

  • Page 137
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Corporate Governance 4.1 Management and Control The RNGC endeavours to avoid a complete replacement of outgoing Directors by new ...

  • Page 138
    ... Governance 4.1 Management and Control Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 c) The Board of Directors in 2015 (i) Composition of the Board of Directors in 2015 Airbus Group Board Of Directors Committee...

  • Page 139
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Corporate Governance 4.1 Management and Control The Company has not appointed observers to the Board of Directors. Pursuant to applicable ...

  • Page 140
    ... with positions including President of the Integrated Systems Sector, Corporate Vice President and General Manager of the Company's Commercial Aircraft Division and Corporate Vice President and General Manager of the B-2 Division. Prior to his industry career, Mr. Crosby served as an officer in...

  • Page 141
    ... as President of the Federation of German Industries (BDI) from 2009 to 2012 and now (since 2013) serves as one of its Vice Presidents. Prior to this he served nearly 20 years at Hochtief - first as Director for International Business and subsequently from 1992 to 2007 as Chief Executive Officer. He...

  • Page 142
    ... in Frankfurt in 1998 as Executive Vice President. From 1985, he held various management positions within IBM, working in Europe and the United States, in the fields of controlling, internal application development, sales, personal software, marketing and brand management. In 1997, he was appointed...

  • Page 143
    ... 1997, she worked at Alcatel as Senior Executive Vice President, member of the Executive Committee, in charge of international business and industrial holdings. From 1995 to 1997 she was Partner of Lazard Frères & Cie. Before that, from 1990 to 1995, she worked for the French President's office, in...

  • Page 144
    ...Governance 4.1 Management and Control Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Lakshmi N. MITTAL Curriculum Vitae Lakshmi N. Mittal is the Chairman and CEO of Arcelor Mittal. He founded Mittal Steel Company in...

  • Page 145
    ...Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Corporate Governance 4.1 Management and Control María Amparo MORALEDA MARTÍNEZ Curriculum Vitae Amparo Moraleda graduated as an industrial...

  • Page 146
    ... 4.1 Management and Control Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Michel PÉBEREAU Curriculum Vitae Michel Pébereau was Chairman of the Board of BNP Paribas between 2003 and 2011. He presided over...

  • Page 147
    ...the Airbus product policy and cost competitiveness as well as the evolution of Airbus Helicopters. Directors supported Management's initiative to establish a corporate venture capital fund, dubbed Airbus Group Ventures, as well as a business innovation centre in Silicon Valley to enhance the Company...

  • Page 148
    ... Governance 4.1 Management and Control Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Furthermore, the Board of Directors welcomed the selection of Airbus Defence and Space by OneWeb Ltd. as its industrial partner...

  • Page 149
    ... the Board of Directors and the Chief Executive Officer are invited to attend meetings of the RNGC. The Head of Airbus Group Human Resources is requested to attend meetings to present management proposals and to answer questions. â- â- the preference for the best candidate for the position; the...

  • Page 150
    ...Management and Control Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 b) Role of the Group Executive Committee The CEO is responsible for executing the strategy as approved by the Board of Directors and for managing...

  • Page 151
    ... of Military Aircraft, Airbus Defence and Space on 29 January 2015 and took up the position on 1 March 2015. He is a member of the Airbus Defence and Space Executive Committee and on 1 July 2015 was appointed to the Airbus Group Executive Committee. Previously he was Senior Vice President Flight and...

  • Page 152
    ..." for the "Best Aviation Technical Development of the Year 2015" at the 13th Annual Living Legends of Aviation Awards in Los Angeles. Jean Botti announced his departure from Airbus Group in January 2016, and will be joining Royal Philips as its Chief Innovation and Strategy Officer as of 1 April...

  • Page 153
    ... of the Executive Committee of the Business Unit, Defence & Communication Systems. In the same year, he became CEO and President of Defence Electronics and member of the Board of the EADS Defence & Security Division. In addition, he was Corporate Vice President Marketing & International Sales from...

  • Page 154
    Q Corporate Governance 4.1 Management and Control Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 John Leahy - Airbus COO-Customers John Leahy was appointed Chief Operating Of ficer - Customers of Airbus in July 2005...

  • Page 155
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Corporate Governance 4.1 Management and Control development and application of procurement processes and tools across all Airbus Group ...

  • Page 156
    Q Corporate Governance 4.1 Management and Control Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 For the financial year 2015, the Company states the following: â- â- 1. Vice-Chairmanship â- â- â- â- Provision...

  • Page 157
    ... ERM reporting to the Board of Directors and Audit Committee (AC) respectively; The Airbus Group Board of Directors supervises the: â- â- corporate strategy and the risks inherent to the business activities; â- â- design and effectiveness of the internal risk management and control systems. on...

  • Page 158
    ... the Company. The Company's financial control model defines the planning and reporting procedures that apply to all operational units of the Group, as well as the responsibilities of the Chief Financial Officer, who is charged with developing, implementing and 4.1.3.5 Business Processes Covered...

  • Page 159
    ... changes are involved, the Chief Financial Officer or the Board of Directors (based upon the advice of the Audit Committee). Control of the financial planning and reporting processes is achieved not only through the development of group-wide accounting systems and policies, but also through...

  • Page 160
    ...4.1 Management and Control Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Financial Of ficer and the Chief Strategy and Marketing Officer serving as Chairmen, and a possible escalation to the Chief Executive Officer...

  • Page 161
    ... Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Corporate Governance 4.1 Management and Control 4.1.4 Ethics and Compliance Organisation ("ECO"), reports to the Group General Counsel and has access to the Audit Committee of the Board of Directors. This integration at Group level...

  • Page 162
    ... leverage on lessons learnt, this report is shared with the top management. 4.2 Interests of Directors and Principal Executive Officers 4.2.1 Remuneration Policy also applied to the other members of the Group Executive Committee, who do not serve on the Board of Directors, and to a large extent to...

  • Page 163
    ...global companies in Airbus Group's main markets (France, Germany, UK and US); and companies operating in the same industries as Airbus Group worldwide. The elements of the Total Direct Compensation are described below: Remuneration Element Base Salary Main drivers Reflects market value of position...

  • Page 164
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Corporate Governance 4.2 Interests of Directors and Principal Executive Of ficers SCENARIOS CEO TOTAL DIRECT COMPENSATION - 2015 Below Threshold Indications are in...

  • Page 165
    ...10%) objectives. Each year, the Airbus Group Board of Directors sets the goals for these key value drivers at Group and Division levels. The Common Collective financial targets relate closely to internal planning and to guidance given to the capital market (although there may be variations therefrom...

  • Page 166
    ... be publicly disclosed as these objectives are in part linked to Airbus Groups' strategy. Nonetheless, for the sake of transparency and to ensure compliance with best market practices, forward-looking information demonstrating the stringency of the targets set by the Board of Directors are provided...

  • Page 167
    ... 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Corporate Governance 4.2 Interests of Directors and Principal Executive Of ficers The CEO's contract includes a non-compete clause which applies for a minimum of one year, and can be extended at the Company...

  • Page 168
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Corporate Governance 4.2 Interests of Directors and Principal Executive Of ficers Incentivising Board attendance the new Board remuneration policy will double the ...

  • Page 169
    ... tailored services and expertise), reinforced anticorruption policy and programme (e.g.: updating Group policies with overarching standards of business conduct, integrity and transparency, including for suppliers and business partners); a reinforced worldwide footprint with local industrial presence...

  • Page 170
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Corporate Governance 4.2 Interests of Directors and Principal Executive Of ficers PERFORMANCE AGAINST TARGET 2015 Threshold Common Collective Component (50%) ...

  • Page 171
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Corporate Governance 4.2 Interests of Directors and Principal Executive Of ficers Date of grants Number Share price at grant date Value...

  • Page 172
    ... discount rate in 2015, which mainly explains the change in value. For the fiscal year 2015, the current service and interest costs related to the CEO's pension promise represented an expense of â,¬ 1,079,861. This obligation has been accrued in the Consolidated Financial Statements. The defined...

  • Page 173
    .... Pursuant to shareholders' resolutions adopted at the AGM, the powers to issue shares and to set aside preferential subscription rights of existing shareholders have been granted to the Board of Directors. Such powers include the approval of ESOP. AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 141 l

  • Page 174
    ... 2015 are set out in the "Notes to the IFRS Consolidated Financial Statements - Note 30: Share-based payment". They are also summarised in the tables below: Eighth tranche Date of Shareholders' Meeting Date of Board of Directors meeting (grant date) Number of options granted Number of options...

  • Page 175
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Corporate Governance 4.3 Employee Pro fit Sharing and Incentive Plans Twelfth tranche Date of Board of Directors meeting (grant date) ...

  • Page 176
    ... Pro fit Sharing and Incentive Plans Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Fourteenth tranche Date of Board of Directors meeting (grant date) Performance Units Number of units granted(1) Number of units...

  • Page 177
    ... ordinary shares 1,292 ordinary shares 40,000 stock options Mr. Thomas Enders Mr. Denis Ranque Mr. Manfred Bischoff Mr. Ralph D. Crosby, Jr. â- â- â- â- â- â- No other Member of the Board of Directors holds shares or other securities in the Company. AIRBUS GROUP REGISTRATION DOCUMENT 2015...

  • Page 178
    Chapter X 5. FACTORS RISK AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 146 l

  • Page 179
    Q Annual Report 2015 Registration Registration Document Document 2015 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Entity Responsible for the Registration Document 5.1 Entity Responsible for the Registration Document 5.2 Statement of the Entity ...

  • Page 180
    ...Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Entity Responsible for the Registration Document 5.1 Entity Responsible for the Registration Document 5.1 Entity Responsible for the Registration Document Airbus Group...

  • Page 181
    ...16 April 2015; and the Consolidated Financial Statements (IFRS) and the Company Financial Statements of Airbus Group SE for the years ended 31 December 2013, 2014 and 2015, together with the related Auditors' reports, may be inspected at the Company's registered office at: Airbus Group SE, Mendelweg...

  • Page 182
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 150 l

  • Page 183
    Financial Statements l 2015 l AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 01 l

  • Page 184
    AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 02 l

  • Page 185
    ... Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Financial Statements l 2015 l 1 Airbus Group SE - IFRS Consolidated Financial Statements Notes to the IFRS Consolidated Financial Statements Airbus Group SE - IFRS Company...

  • Page 186
    Chapter 1. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 04 l

  • Page 187
    ...Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Airbus Group SE IFRS Consolidated Financial Statements Airbus Group SE - IFRS Consolidated Income Statements for the years ended 31 December 2015 and 2014 Airbus Group...

  • Page 188
    ... owners of the parent (Net income) Non-controlling interests Earnings per share Basic Diluted 16 16 2,698 2,696 2 â,¬ 3.43 3.42 2,350 2,343 7 â,¬ 2.99 2.99 The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS). AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 06 l

  • Page 189
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Airbus Group SE - IFRS Consolidated Financial Statements Airbus Group SE - IFRS Consolidated Statements of Comprehensive Income for the years ended 31 December 2015 ...

  • Page 190
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Airbus Group SE - IFRS Consolidated Financial Statements Airbus Group SE - IFRS Consolidated Statements of Financial Position at 31 December 2015 and 2014 (In â,¬ ...

  • Page 191
    ...4 5 Airbus Group SE - IFRS Consolidated Financial Statements (In â,¬ million) Note 2015 2014 Equity and liabilities Equity attributable to equity owners of the parent Capital stock Share premium Retained earnings Accumulated other comprehensive income Treasury shares Non-controlling interests...

  • Page 192
    ... 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 for sale and liabilities directly associated Payments for investments in securities Proceeds from disposals of securities Cash (used for...

  • Page 193
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Airbus Group SE - IFRS Consolidated Financial Statements Airbus Group SE - IFRS Consolidated Statements of Changes in Equity for the years ended 31 December 2015 and...

  • Page 194
    Chapter 2. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 12 l

  • Page 195
    ... Information 2.4 Group Performance 2.5 Operational Assets and Liabilities 2.6 Employees Costs and Benefits 2.7 Capital Structure and Financial Instruments 2.8 Other Notes 15 19 25 28 34 46 59 77 2.9 Appendix "Simplified Group Structure Chart" 80 2. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 13...

  • Page 196
    ... the Reporting Date 77 77 79 79 2.5 Operational Assets and Liabilities 17. 18. 19. Intangible Assets Property, Plant and Equipment Other Investments and Other Long-Term Financial Assets 34 34 36 38 2.9 Appendix "Simplified Group Structure Chart" 80 AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 14...

  • Page 197
    ... Civil Code. Airbus Group is listed on the European stock exchanges in Paris, Frankfurt am Main, Madrid, Barcelona, Valencia and Bilbao. The IFRS Consolidated Financial Statements were authorised for issue by the Group's Board of Directors on 23 February 2016. They are prepared and reported in euro...

  • Page 198
    ... of material, labour and other production costs), including depreciation charges. Net realisable value is the estimated selling price in the ordinary course of the business less the estimated costs to complete the sale. Inventories include work AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 16 l

  • Page 199
    ... of new commercial or military aircraft programmes (such as the A350 XWB and the A400M) or major derivative aircraft programmes particularly involves an increased level of estimates and judgements associated with the expected development, production and certification schedules and expected cost...

  • Page 200
    ... December 2015 and have not been applied in preparing these Consolidated Financial Statements and early adoption is not planned: IASB effective date for annual reporting periods beginning on or after 1 January 2018 1 January 2018 1 January 2016 1 January 2016 1 January 2016 1 January 2016 Standards...

  • Page 201
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.2 Group Structure providing evidence that control of a good or service has transferred to the customer are met....

  • Page 202
    ...as held for sale as at 31 December 2014. Airbus Group received 50% of issued shares in ASL initially recognised at â,¬ 56 million as at-equity investment. The loss of control in the business resulted in a capital gain of â,¬ 49 million, which is reported in Airbus Defence and Space Division in other...

  • Page 203
    ... (reported in Airbus Division). The transaction has been closed on 4 January 2016. On 17 December 2015, DS Holding SAS (France) and Astrium International Holdings B.V. (as beneficiaries) and a buyer signed a sale purchase agreement in respect to the companies which form the business communications...

  • Page 204
    ... Group, BAE Systems and Finmeccanica. MBDA offers missile systems capabilities that cover the whole range of solutions for air dominance, ground-based air defence and maritime superiority, as well as advanced technological solutions for battlefield engagement. AIRBUS GROUP FINANCIAL STATEMENTS 2015...

  • Page 205
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.2 Group Structure The following table summarises financial information for MBDA, Atlas and GIE ATR based on ...

  • Page 206
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.2 Group Structure Furthermore, the Group has interests in a number of individually immaterial joint ventures, ...

  • Page 207
    ... operates in three reportable segments which reflect the internal organisational and management structure according to the nature of the products and services provided. â- â- â- â- â- â- Airbus - Development, manufacturing, marketing and sale of commercial jet aircraft of more than 100 seats...

  • Page 208
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.3 Segment Information 9. Segment Information Business segment information for the year ended the 31 December ...

  • Page 209
    ... and equipment by geographical areas is disclosed in Note 18 "Property, plant and equipment". The revenues by geographical areas are disclosed in Note 10 "Revenues, cost of sales and gross margin". 2. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 27 l

  • Page 210
    ... 64,450 60,713 Cost of Sales and Gross Margin Cost of sales increased by 7.4%. The increase was primarily due to business growth at Airbus, an increase in the A350 XWB programme support costs, and negative foreign exchange revaluation impacts from pre-delivery payments. This was partly offset by...

  • Page 211
    ... Expenses Research and development expenses increased by 2.0% primarily reflecting R&D activities on the A350 XWB programme at Airbus. In addition, an amount of â,¬ 154 million of development costs has been capitalised, mainly related to the H160 and Single Aisle NEO programmes. 12. Share of...

  • Page 212
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.4 Group Performance 14. Total Finance Costs Interest income derived from the Group's asset management and ...

  • Page 213
    ... certain companies mainly for Airbus in Germany and Airbus Defence and Space in the United Kingdom ("UK"). The amount of change in valuation allowances of â,¬ 96 million in 2015 (2014: â,¬ -72 million) excludes a positive impact of â,¬ 1 million (2014: â,¬ 4 million) from a change in tax rates which...

  • Page 214
    ... Valuation allowances on deferred tax assets Set-off Net deferred tax assets (liabilities) 5,717 (1,130) 877 162 (51) (16) 6,759 (1,200) (1) "Others" mainly comprises changes in the consolidation scope and foreign exchange rate effects. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 32 l

  • Page 215
    ... 784,155,749 â,¬ 2.99 Profit for the period attributable to equity owners of the parent (Net income) Weighted average number of ordinary shares (diluted)(1) Diluted earnings per share (1) Dilution assumes conversion of all potential ordinary shares. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 33 l

  • Page 216
    ...amortisation for the A380 programme development costs is performed on a unit of production basis. Capitalisation for development costs of the A350 XWB programme started in the second quarter of 2012 when the first aircraft entered the final assembly line. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 34...

  • Page 217
    ... 2016 to 92 a/c in 2019 incorporating the introduction of A330neo deliveries in 2017. Furthermore A350 XWB delivery rates increase significantly throughout the plan. For A380, management believes that the programme will remain stable in the foreseeable future. AIRBUS GROUP FINANCIAL STATEMENTS 2015...

  • Page 218
    ... management's assessment of a normative operating year based on an outlook of a full aeronautic cycle over the next decade. Long-term commercial assumptions in respect of market share, deliveries and market value are based on General Market Forecast updated in 2015. The development of market share...

  • Page 219
    ... held for sale (see Note 6 "Acquisitions and disposals"). In 2015, the Group capitalised â,¬ 8 million of borrowing cost on the production of qualifying assets (2014: â,¬ 20 million). The Group's borrowing rate at the end of 2015 was 2.06% (2014: 2.12%). AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 37...

  • Page 220
    ...loans in the amount of â,¬ 717 million and â,¬ 876 million as of 31 December 2015 and 2014, and the Group's sales finance activities in the form of finance lease receivables and loans from aircraft financing (see Note 25 "Sales financing transactions"). AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 38 l

  • Page 221
    ... business such as trade receivables and payables and receivables from PoC method, that are settled as part of the normal operating cycle are classified as current even when they are not expected to be realised within 12 months after the reporting period. 2. AIRBUS GROUP FINANCIAL STATEMENTS 2015...

  • Page 222
    ... Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.5 Operational Assets and Liabilities Trade Receivables 31 December (In â,¬ million) 2015 8,153 (276) 2014 7,087 (289) Receivables from sales of goods and services...

  • Page 223
    ...Security business, to the Eurofighter programme and to diverse tasks to complete on construction contracts, as well as to Airbus Helicopters (â,¬ 490 million), mainly for the NH90 and Tiger programmes. Contingent assets and contingent liabilities - Airbus Group is exposed to technical and commercial...

  • Page 224
    ... advances from European governments are provided to the Group to finance research and development activities for certain projects on a risk-sharing basis, i.e. they have to be repaid to the European Governments subject to the success of the project. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 42...

  • Page 225
    ... as part of a commercial buyback transaction, returned to the Group after a payment default or at the end of a lease agreement are classified as inventory held for resale if there is no subsequent lease agreement in force (see Note 20 "Inventories"). 2. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 43...

  • Page 226
    ... of second hand aircraft for resale before impairment, and (v) the outstanding value of any other investment in sales financing SEs before impairment. This gross customer financing exposure may differ from the value of related assets on the Group's statement of financial position and related off...

  • Page 227
    ...-recourse basis (i.e. in a default event, the creditor would only have recourse to the aircraft collateral). 31 December (In â,¬ million) 2. 2015 94 0 2014 46 0 Loans Liabilities to financial institutions Total sales financing liabilities 94 46 AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 45 l

  • Page 228
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.6 Employees Costs and Bene fits Customer Financing Exposure The on-balance sheet assets relating to sales ...

  • Page 229
    ...Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.6 Employees Costs and Bene fits 28. Personnel-Related Provisions Several German Group companies provide life time working...

  • Page 230
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.6 Employees Costs and Bene fits is the statutory funding objective under the Pensions Act part 6 2004, which is...

  • Page 231
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.6 Employees Costs and Bene fits The weighted-average assumptions used in calculating the actuarial values of ...

  • Page 232
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.6 Employees Costs and Bene fits The development of the defined benefit obligation is set out below: CHANGE IN ...

  • Page 233
    ... Financial Statements 2.6 Employees Costs and Bene fits In 2015, contributions in the amount of â,¬ 241 million (2014: â,¬ 372 million) are made into the pension plans of the Group, mainly relating to the Contractual Trust Arrangement with â,¬ 130 million (2014: â,¬ 265 million), the Airbus Group...

  • Page 234
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.6 Employees Costs and Bene fits The fair value of the plan assets for retirement plans and deferred ...

  • Page 235
    ... the employees have rendered service to date. The fair value of each LTIP unit is determined using a forward pricing model. Changes of the fair value are recognised as personnel expense of the period, leading to a remeasurement of the provision. 2. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 53 l

  • Page 236
    ... 100% â,¬ 25.65 16 December 2016 Expiry date Conversion right Vested Exercise price Exercise price conditions Number of exercised options (1) As regards the SOP 2005, part of the options granted to the Group's top Executives were performance related. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 54 l

  • Page 237
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.6 Employees Costs and Bene fits The following table summarises the development of the number of outstanding ...

  • Page 238
    ... Financial Statements 2.6 Employees Costs and Bene fits 30.2 Employee Share Ownership Plan ("ESOP") In 2015, the Board of Directors approved a new ESOP. Eligible employees were able to purchase a fixed number of previously unissued shares at fair value (4, 6, 9, 19, 37, 74 or 148 shares). The Group...

  • Page 239
    ... expense was recognised in 2015 or in 2014. Other Benefits Other benefits include expenses for Executive Committee Members' company cars and accident insurance. There were no outstanding liabilities at 31 December 2015 or 2014 respectively. 2. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 57 l

  • Page 240
    ... Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.6 Employees Costs and Bene fits 31.2 Remuneration - Chief Executive Officer ("CEO") The total remuneration of the CEO and Executive Member of the Board of Directors...

  • Page 241
    ... months of 2015 will be paid in 2016. 2.7 Capital Structure and Financial Instruments 32. Total Equity 32.1 Equity Attributable to Equity Owners of the Parent Airbus Group's shares are exclusively ordinary shares with a par value of â,¬ 1.00. The following table shows the development of the number...

  • Page 242
    ... Board of Directors for an 18-month period to repurchase up to 10% of the Company's issued and outstanding share capital (i.e. issued share capital excluding shares held by the Company or its subsidiaries) at a price not exceeding â,¬ 85 per share. Airbus Group has appointed an Investment Services...

  • Page 243
    ... Management concept are: average of the annual opening and closing positions of Fixed Assets plus Net Operating Working Capital plus operating cash less Other Provisions. Financial value is created if profits relative to the Group's Capital Employed exceed the Company's cost of capital. Value...

  • Page 244
    ... Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.7 Capital Structure and Financial Instruments 34. Net Cash The net cash-position provides financial flexibility to fund the Group's operations, to react to the Group's business...

  • Page 245
    ...12 months. The programme has been set up in 2003 with a maximum volume of â,¬ 2 billion, increased in 2013 to a maximum volume of â,¬ 3 billion. As of 31 December 2015, there was no outstanding amount under the programme. The Group signed in April 2015 the documentation of a US$ 2 billion commercial...

  • Page 246
    ... effects on the Group's operational and financial performance. The financial risk management of the Group is generally carried out by the Corporate Finance department at the Group under policies approved by the Board of Directors or by the Chief Financial Officer. The identification, evaluation...

  • Page 247
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.7 Capital Structure and Financial Instruments be affected by changes in the â,¬/US$ exchange rate. As the Group...

  • Page 248
    ... is to a small extent invested in equity securities mainly for operational reasons. The Group's exposure to equity price risk is hence limited. Furthermore, the Group is exposed under its LTIP to the risk of Airbus Group share price increases. The Group limits these risks through the use of equity...

  • Page 249
    ... into security lending agreements. Adverse changes in the capital markets could increase the Group's funding costs and limit its financial flexibility. Further, the management of the vast majority of the Group's liquidity exposure is centralised by a daily cash concentration process. This process...

  • Page 250
    ...financial instruments and the impact of the market developments on their performance and takes appropriate action on foreseeable adverse development based on pre-defined procedures and escalation levels. Sales of products and services are made to customers after having conducted appropriate internal...

  • Page 251
    ...financial assets that is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy. The Group assigns its financial instruments into classes based on their balance sheet category. 2. AIRBUS GROUP FINANCIAL STATEMENTS 2015...

  • Page 252
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.7 Capital Structure and Financial Instruments The following tables present the carrying amounts and fair values...

  • Page 253
    ... used to measure fair values rely on observable market data, fair value measurements may be hierarchised according to the following levels of input: â- â- Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 71 l

  • Page 254
    ...as Level 3 The financial assets measured at fair value that are classified as Level 3 mainly consist of short-term commodity contracts whose notional amounts vary with the actual volumes of certain commodity purchases made by the Group in specific months. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 72...

  • Page 255
    ... are determined using recognised valuation techniques such as option-pricing models and discounted cash flow models. The valuation is based on observable market data such as currency rates, currency forward rates, interest rates and yield curves, 2. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 73 l

  • Page 256
    ... discounting scheduled or expected cash flows using appropriate market interest rates. The fair values disclosed for the issued EMTN and US dollar bonds reflect public price quotations that qualify as Level 1 input. For issued commercial papers, the carrying amounts reflected in the annual accounts...

  • Page 257
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.7 Capital Structure and Financial Instruments 35.4 Notional Amounts of Derivative Financial Instruments The ...

  • Page 258
    ... Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.7 Capital Structure and Financial Instruments 35.5 Derivative Financial Instruments and Hedge Accounting Disclosure The development of the foreign exchange rate...

  • Page 259
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Consolidated Financial Statements 2.8 Other Notes 35.6 Net Gains or Net Losses The Group's net gains or net losses recognised in profit or loss in ...

  • Page 260
    ... Group to cease a partnership for sales support activities in some local markets abroad. The Group believes it has solid grounds to legally object to the alleged breach of a commercial agreement. However, the consequences of this dispute and the outcome of the AIRBUS GROUP FINANCIAL STATEMENTS 2015...

  • Page 261
    ... in 2015 (2014: â,¬ 6 million). 38. Events after the Reporting Date There are no significant events after the reporting date. These Consolidated Financial Statements have been authorised for issuance by the Board of Directors on 23 February 2016. 2. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 79...

  • Page 262
    ...MBDA Group Airbus Operations SAS (France) Astrium Services GmbH (Germany) CRI, S.A. (Spain) Airbus Helicopters UK Limited (UK) 2 2.9 Appendix "Simplified Group Structure Chart" AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 80 l 3 Airbus Operations GmbH (Germany) Airbus Defence and Space Limited...

  • Page 263
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 81 l

  • Page 264
    Chapter 3. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 82 l

  • Page 265
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Airbus Group SE IFRS Company Financial Statements IFRS Company Income Statements for the years ended 31 December 2015 and 2014 IFRS Company Statements of ...

  • Page 266
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Airbus Group SE - IFRS Company Financial Statements IFRS Company Income Statements for the years ended 31 December 2015 and 2014 (In â,¬ million) Note 2015 476 (...

  • Page 267
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Airbus Group SE - IFRS Company Financial Statements IFRS Company Statements of Financial Position at 31 December 2015 and 2014 (In â,¬ million) Note 7 8 8 6 12...

  • Page 268
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Airbus Group SE - IFRS Company Financial Statements IFRS Company Statements of Cash Flows for the years ended 31 December 2015 and 2014 (In â,¬ million) Note 2015...

  • Page 269
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Airbus Group SE - IFRS Company Financial Statements IFRS Company Statements of Changes in Equity for the years ended 31 December 2015 and 2014 Accumulated other ...

  • Page 270
    Chapter 4. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 88 l

  • Page 271
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Company Financial Statements 4.1 Basis of Presentation 4.2 Company Performance 4.3 Operational Assets and Liabilities 4.4 Employees 4.5 Capital ...

  • Page 272
    ... and Contingencies 96 96 98 99 4.4 Employees 10. Number of Employees 99 99 4.5 Capital Structure and Financial Instruments 11. 12. 13. Total Equity Cash, Securities and Financing Liabilities Information about Financial Instruments 99 99 101 103 AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 90 l

  • Page 273
    ...Company has its listings at the European Stock Exchanges in Paris, Frankfurt am Main, Madrid, Barcelona, Valencia and Bilbao. The IFRS Financial Statements were authorised for issue by the Company's Board of Directors on 23 February 2016. They are prepared and reported in euro ("â,¬") and all values...

  • Page 274
    ... with Part 9 of Book 2 of the Dutch Civil Code. When applying IFRS in the Company Financial Statements, Airbus Group SE applied the principles of IFRS 1 "First-time adoption of international financial reporting standards". According to IFRS 1 a company applying for first time IFRS 1 shall develop...

  • Page 275
    ...holding company to manage its subsidiaries and to assist the business activities conducted by companies of the Airbus Group and its subsidiaries, Airbus Group SE applies transfer prices for its business activities in conformity with market levels and in accordance with national and international tax...

  • Page 276
    ... total interest expenses. Both amounts are calculated by using the effective interest method. The Company is acting as a financial market agent on behalf of its subsidiaries, therefore the fair value changes of derivatives are reported on a net basis. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 94 l

  • Page 277
    ... 0 0 (3) (3) 0 (3) Deferred tax liabilities (21) (3) 0 (24) 24 0 Securities Financial instruments Net operating loss and tax loss carry forwards Deferred tax assets (liabilities) before offsetting Set-off Net deferred tax assets (liabilities) 4. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 95 l

  • Page 278
    ... Impairments Share-based payments (IFRS 2) Fair value changes through equity Balance at 31 December 2014 Additions Book loss on investments Share-based payments (IFRS 2) Fair value changes through equity Balance at 31 December 2015 14,268 21 232 14,521 AIRBUS GROUP FINANCIAL STATEMENTS 2015...

  • Page 279
    ... to the Finnish defence, security and aviation services provider for a total consideration of â,¬ 133 million. The transaction was closed on 11 December 2014 and the Company recognised a â,¬ 91 million capital gain within income from investments. 4. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 97 l

  • Page 280
    ... financial instruments Current financial liabilities Negative fair values of derivative financial instruments (1) The receivables from and liabilities to subsidiaries include mainly transactions in connection with the cash pooling in Airbus Group SE. AIRBUS GROUP FINANCIAL STATEMENTS 2015...

  • Page 281
    ... by the Company in 2015 was 3 (2014: 3). 4.5 Capital Structure and Financial Instruments 11. Total Equity Airbus Group's shares are ordinary shares with a par value of â,¬ 1.00. The following table shows the development of the number of shares outstanding: (In number of shares) 2015 784,780...

  • Page 282
    ..., the Annual General Meeting authorised both the Board of Directors and the Chief Executive Officer, with powers of substitution, that the number of shares repurchased by the Company pursuant to the share buyback programme are cancelled. As per decisions of the Chief Financial Officer upon...

  • Page 283
    ...31 December (In â,¬ million) 2015 1,683 9,590 3 2014 3,077 5,805 4 Current securities (available-for-sale) Non-current securities (available-for-sale) Non-current securities (at fair value through profit or loss) 4. Total securities 11,276 8,886 AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 101 l

  • Page 284
    Q Notes to the IFRS Company Financial Statements Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Included in the securities portfolio as of 31 December 2015 and 2014, respectively, are corporate and government bonds ...

  • Page 285
    ...35.1 "Financial risk management" of the Notes to the Consolidated Financial Statements. Equity price risk - The Company is to a small extent invested in quoted equity securities mainly for strategic reasons. The Company's exposure to equity price risk is hence limited. Furthermore, Airbus Group is...

  • Page 286
    Q Notes to the IFRS Company Financial Statements Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 A summary of the VaR position of the Company's financial instruments portfolio at 31 December 2015 and 2014 is as ...

  • Page 287
    ... Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Company Financial Statements 13.2 Carrying Amounts and Fair Values of Financial Instruments Financial instruments - The Company's financial assets mainly...

  • Page 288
    ...Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 31 December 2014 (In â,¬ million) Fair value through profit or loss Held for trading Designated Fair value for hedge relations Fair value Availablefor-sale Book value...

  • Page 289
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Notes to the IFRS Company Financial Statements 13.3 Potential Effect of Set-Off Rights on Recognised Financial Assets and Liabilities The Company reports all its ...

  • Page 290
    ... fair value through profit or loss: Held for trading Designated on initial recognition Available-for-sale financial assets Loans and receivables(1) Financial liabilities measured at amortised cost Total (1) Contain among others impairment losses. 162 (173) AIRBUS GROUP FINANCIAL STATEMENTS 2015...

  • Page 291
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 4. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 109 l

  • Page 292
    Chapter 5. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 110 l

  • Page 293
    Q Annual Report 2015 Registration Document 2015 Financial Financial Statements Statements 2015 2015 1 2 3 4 5 1 2 3 4 5 Other Supplementary Information Including the Independent Auditor's Report 5. AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 111 l

  • Page 294
    ... and company financial statements give a true and fair view of the financial position of Airbus Group SE as at December 31, 2015, and of its result and its cash flows for 2015 in accordance with International Financial Reporting Standards as adopted by the European Union (EU-IFRS) and with Part 9 of...

  • Page 295
    ... firms. The organisation and supervision of the audit of the financial statements is a crucial part of our work. We scope entities into the Group audit where they are of significant size, have significant risks to the Group associated with them or are considered significant for other reasons. This...

  • Page 296
    ... impact on the Group's result and financial position. The determination of these provisions is based on best available estimates and requires significant management judgement and assumptions associated with the technical development achievement and certification schedules, production plan (including...

  • Page 297
    ... paid to the commercial status of the A380 programme, including discussions with Airbus management on the status and their ongoing commitment to the A380 programme. Litigation and claims and risk of non-compliance with laws and regulations Description A part of the Group's business is characterised...

  • Page 298
    ... part of its costs is incurred in Euro and, to a lesser extent, in pounds Sterling. In response to these risks the Group uses financial instruments (mainly currency forwards) to mitigate the exposure to changes in market rates. There is a high inherent risk of error in the Group financial statements...

  • Page 299
    ... by Part 9 of Book 2 of the Netherlands Civil Code has been annexed; We report that the report of the Board of Directors, to the extent we can assess, is consistent with the financial statements. Engagement We were engaged before 2003 for the first time as Auditor of Airbus Group SE and operated as...

  • Page 300

  • Page 301

  • Page 302
    ... Annual Review: Registration Document and Financial Statements: Labrador Copywriting by The Clerkenwell Consultancy - Printed by Chirat. Photographs: Cover p. 0-1 © Airbus Helicopters © Airbus /J.-V. Reymondon © Adobe Stock/ViewAppart © Airbus/ S. Ramadier, J.-V. Reymondon © Airbus Helicopters...

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    Airbus Group SE Mendelweg 30 2333 CS Leiden The Netherlands 2 rond-point Dewoitine BP 90112 31703 Blagnac Cedex France