Airbus 2015 Annual Report Download - page 102

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 70 l
Management’sDiscussion andAnalysisofFinancial Condition andResultsofOperations
2.1 Operating and Financial Review
charge of € 551million related to the A400M programme as a
result of Management’s review. In Q42013, a negative charge of
€ 434million was recorded on the A350XWB programme which
is partly compensating the increase in 2014. Consolidated cost of
sales also includes the amortisation of capitalised development
costs pursuant to IAS38, which amounted to € ‑137million in
2014 compared to € ‑106million in 2013. Notwithstanding the
above stated items, the gross margin increased from 13.8% in
2013 to 14.7% in 2014.
2.1.4.3 Consolidated Selling andAdministrative
Expenses
Consolidated selling and administrative expenses increased by
1.9%, from € 2.6billion for 2014 to € 2.7billion for 2015.
Consolidated selling and administrative expenses decreased
by 5.8%, from € 2.8billion for 2013 to € 2.6billion for 2014.
2.1.4.4 Consolidated Research
andDevelopment Expenses
Consolidated research and development expenses increased
by 2.0%, from € 3.4billion for 2014 to € 3.5billion for 2015.
The main contribution to the expenses comes from the
A350XWB programme. In addition, an amount of € 154million
of development costs has been capitalised, mainly related to
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 € 3.1billion for 2013 to € 3.4billion for 2014, primarily
reflecting R&D activities at Airbus. The main contribution to
the expenses comes from the A350XWB programme. In
addition, an amount of € 58million of development costs for
the A350XWB programme has been capitalised.
2.1.4.5 Consolidated Other Income
andOtherExpenses
Consolidated other income and other expenses include gains
and losses on disposals of investments, of fixed assets and
income from rental properties.
For 2015, other income and other expenses was €+252million
net as compared to € +151million net for 2014. The net increase
was due to the capital gain of € 72million related to the disposal
of Cimpa SAS, the net gain of € 51million from the partial sale
of Dassault Aviation held for sale shares that occurred in the
second quarter and the capital gain of € 49million following the
completion of the first phase of the creation of ASL. This was
partly offset due to costs associated with disposals in Airbus
Defence andSpace.
For 2014, other income and other expenses was € +151million
net as compared to € +13million net for 2013. The net increase
was partly due to the sale of the Paris Headquarters building.
2.1.4.6 Consolidated Share of Profit
fromInvestments Accounted for under
theEquity Method and Other Income
fromInvestments
Consolidated share of profit from investments accounted for
under the equity method and other income from investments
principally includes results from companies accounted for
under the equity method and the results attributable to non‑
consolidated investments.
For 2015, the Group recorded € 1,070million in consolidated
share of profit from investments accounted for under the equity
method and other income from investments as compared to
€ 895million for 2014. The € 175million increase is mainly due
to higher results from joint ventures. The consolidated share of
profit from investments accounted for under the equity method
includes a € 748million net gain from the sale of 18.75% stake
in Dassault Aviation in the first half of 2015. Please refer to
the “Notes to the IFRS Consolidated Financial Statements —
Note7: Investments accounted for under the equity method”
and “Note 12: Share of profit from investment accounted for
under the equity method and other income from investment”.
For 2014, the Group recorded € 895million in consolidated
share of profit from investments accounted for under the equity
method and other income from investments as compared to
€ 483million for 2013. The € 412million increase is mainly due
to a gain of € 343million from the partial sale of shares of
Dassault Aviation and to a gain of € 47million from the disposal
of shares of Patria.
2.1.4.7 Consolidated Interest Result
Consolidated interest result reflects the net of interest income
and expense arising from financial assets and liabilities,
including interest expense on refundable advances provided
by European governments to finance R&D activities.
For 2015, the Group recorded a consolidated net interest
expense of € ‑368million, as compared to € ‑320million for
2014. The deterioration in interest result is primarily due to
higher interest expense recorded on European government
refundable advances.
For 2014, the Group recorded a consolidated net interest
expense of € ‑320million, as compared to € ‑332million for
2013. The small improvement in interest result is due to lower
interest expense recorded on European government refundable
advances.
2.1.4.8 Consolidated Other Financial Result
This line item includes, among others, the impact from the
revaluation of financial instruments, the effect of foreign
exchange valuation of monetary items and the unwinding
of discounted provisions. Please refer to the “Notes to the
IFRS Consolidated Financial Statements — Note2: Significant
accounting policies” and “Note14: Total finance costs”.
Financial Statements 2015
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QRegistration Document 2015
Annual Report 2015 Financial Statements 2015