Airbus 2015 Annual Report Download - page 107

AIRBUS GROUP REGISTRATION DOCUMENT 2015 l 75 l
Management’sDiscussion andAnalysisofFinancial Condition andResultsofOperations
Registration Document 2015
2.
2.1 Operating and Financial Review
2.1.6.2 Consolidated cash and cash
equivalents and securities
The cash and cash equivalents and securities portfolio of the
Group is invested mainly in non‑speculative financial instruments,
mostly highly liquid, such as certificates of deposit, overnight
deposits, commercial paper, other money market instruments
and bonds. Please refer to the “Notes to the IFRS Consolidated
Financial Statements — Note35.1: Information about financial
instruments — Financial risk management”.
The Group has a partially automated cross‑border and
domestic cash pooling system (including France, Germany,
Spain, the Netherlands, the UK and the US). The cash pooling
system enhances Management’s ability to assess reliably
and instantaneously the cash position of each subsidiary
within the Group and enables Management to allocate cash
optimally within the Group depending upon shifting short‑
term needs.
2.1.6.3 Consolidated Financing Liabilities
The outstanding balance of the Group’s consolidated financing
liabilities increased from € 7.4billion as of 31December 2014
to € 9.1billion as of 31December 2015. This increase is mainly
due to a € 0.5billion convertible bond, the US$ 0.3billion
loan from EIB and liabilities under the US Commercial paper
programme in the amount of US$ 0.55billion, all entered into
in 2015. For further information, please refer to the “Notes to
the IFRS Consolidated Financial Statements — Note34.3: Net
cash — Financing liabilities”.
2.1.6.4 Sales Financing
The Group favours cash sales and encourages independent
financing by customers, in order to avoid retaining credit or asset
risk in relation to delivered products. However, in order to support
product sales, primarily at Airbus and Airbus Helicopters, the
Group may agree to participate in the financing of customers, on
a case‑by‑case basis, directly or through guarantees provided
to 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. Nevertheless, it
intends to keep the amount as low as possible.
Dedicated and experienced teams structure such financing
transactions and closely monitor total Group finance and asset
value exposure and its evolution in terms of quality, volume and
intensity of cash requirements. The Group aims to structure all
financing it provides to customers in line with market‑standard
contractual terms so as to facilitate any subsequent sale or
reduction of such exposure.
EVOLUTION OF AIRBUS GROSS EXPOSURE DURING 2015 IN US$ MILLIONS
31 December 2014
Additions
Disposals
Amortisation
31 December 2015
-581
-120
1,487
1,339
849
Airbus Gross Customer Financing Exposure as of 31December
2015 is distributed over 74aircraft, operated at any time by
approximately 19 airlines. In addition, the level of exposure
may include other aircraft‑related assets, such as spare parts.
More than 90% of Airbus Gross Customer Financing Exposure
is distributed over 10 countries (this excludes backstop
commitments).
Over the last three years (2013 to 2015), the average number of
aircraft delivered in respect of which financing support has been
provided by Airbus amounted to 1% of the average number of
deliveries over the same period, i.e. 9aircraft financed per year
out of 630deliveries per year on average.
Airbus Helicopters’ Gross Customer Financing Exposure
amounted to € 69million as of 31December 2015. This exposure
is distributed over 49 helicopters, operated by approximately
4 companies.
For further information, please refer to the “Notes to the IFRS
Consolidated Financial Statements — Note25: Sales financing
transactions”.
Financial Statements 2015
11 22 33 44 55
QRegistration Document 2015
Annual Report 2015 Financial Statements 2015
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