Airbus 2015 Annual Report Download - page 211

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 29 l
Notes to the IFRSConsolidatedFinancialStatements
2.
2.4 Group Performance
An additional eleven A400M aircraft were delivered in 2015,
resulting in twenty-one cumulative deliveries up to 31December
2015.
Industrial efficiency and military capability remain a challenge
during the ramp up phase. Management is working with
the customers to agree a schedule of military capability
enhancement and deliveries as well as reviewing the escalation
formulae. Industrial recovery measures have been identified
and management is focused on delivery, but risk remains.
The mission capability roadmap (including the achievement
of the respective milestones) and the delivery plan remain
under negotiation with OCCAR/Nations and are expected to
be finalised in 2016.
Management reviewed the programme evolution and estimated
contract result driven to a large extent from the implications of
the accident, as well as the impact of low inflation on the price
revision formula, delays in military functionality and deliveries,
commercial negotiations, cost reduction targets and challenges
in the industrial ramp-up, together with associated mitigation
actions. As a result of this review, Airbus Defence and Space
recorded an additional net charge of € 290million in the second
quarter of 2015. The detailed review continued in the second
half of 2015 however no further net charges were deemed
necessary.
The A400M SOC 1 and 1.5 milestones remain to be achieved.
SOC 1 fell due end October2013 and SOC 1.5 fell due end
December2014. The associated termination rights became
exercisable by OCCAR/Nations on 1November 2014 and
1January 2016, respectively. SOC 2 fell due end December2015
and is still in the 12-month grace period. Management judges
that it is highly unlikely that any of these termination rights will
be exercised.
The A400M programme remains in a critical phase and the
associated risks will continue to be closely monitored.
11. Research and Development 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 € 154million of development costs has been capitalised, mainly related to the H160 and Single
Aisle NEO programmes.
12. Share of Profit from Investments Accounted forunder
theEquityMethod and Other IncomefromInvestments
(In € million) 2015 2014
Share of profit from investments in associates(1) 773 721
Share of profit from investments in joint ventures 243 119
Share of profit from investments accounted for under the equity method 1,016 840
Other income from investments 54 55
(1) This includes a significant impact from the investment in Dassault Aviation. For more details, please see Note6 “Acquisitions and disposals”.
13. Other Income and Other Expenses
Other income increased by €+144million. This increase is mainly
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 (see Note6
“Acquisitions and disposals”). It also includes income from rental
properties (€ 50million in 2015 compared to € 67million in 2014).
Other expenses increased by € -43million, mainly due to costs
associated with disposals in Airbus Defence and Space.
Financial Statements 2015
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Annual Report 2015 Financial Statements 2015
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