Airbus 2015 Annual Report Download - page 218

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 36 l
Notes to the IFRSConsolidatedFinancialStatements
2.5 Operational Assets andLiabilities
 In the absence of long-term financial reference, expected
cash flows generated beyond the planning horizon are
considered through a terminal value. The terminal value
reflects 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 per segment considers enlargement of the competition
as per current best assessment. Current market evolutions
are considered through sensitivities.
 Due to the huge hedge portfolio, the carrying value and
the planned cash flows of the CGU Airbus are materially
influenced.
 Cash flows are discounted using a euro weighted WACC of
8.4% (in 2014: 9.4%).
Airbus Helicopters
 The planning takes into account the ramp-up of our medium
segment driven by the H145 and the H175 which have been
certified in 2014, the continuing deliveries of NH90 and a
continuous growth of our support and services activity.
 Long-term commercial assumptions in respect of market
share, deliveries and market value are based on Helicopter
market forecast considering the decrease of last two years
in the civil and parapublic market partially driven by decrease
of investment in oil and gas, needs of helicopter fleet renewal
and growth markers and the increase of Airbus Helicopters
market share in this environment. Current market evolutions
are considered through sensitivities.
 Cash flows are discounted using a euro weighted WACC of
8.2% (in 2014: 9.0%).
Airbus Defence and Space
Airbus Defence and Space strategy is based on future core
activities. The operative planning until 2020 considers a
significant change in the portfolio which will be finalised until
2017 after the sale of non-core activities.
 The planning period is characterised by a strong forecasted
order intake across Military Aircraft and Space Systems.
 The major products driving significant growth are A400M
programme, including export contracts, Tankers, light and
medium transport aircraft and satellites, along with significant
results from the foundation of ASL.
 Airbus Defence and Space assumes a further increase
in profitability over the planning period, driven by higher
programme performance and cost synergies.
 Airbus Defence and Space free cash flow target is also
expected to grow leveraging on a solid cash generation from
current contracts and businesses as well as future order
intakes (Military Aircraft, Satellites, Communication Intelligence
and Security) and improvement on A400M programme.
 Cash flows are discounted using a euro weighted WACC of
8.0% (in 2014: 8.7%).
18. Property, Plant and Equipment
Property, plant and equipment is valued at acquisition or manufacturing costs less accumulated depreciation and impairment
losses. Items of property, plant and equipment are generally depreciated on a straight-line basis. The following useful lives are
assumed:
Buildings 10 to 50years
Site improvements 6 to 30years
Technical equipment and machinery 3 to 20years
Jigs and tools(1) 5years
Other equipment, factory and office equipment 2 to 10years
(1) If more appropriate, jigs and tools are depreciated using the number of production or similar units expected to be obtained from the tools (sum-of-the-units method).
For details on assets related to lease arrangements on sales financing, please refer to Note25 “Sales financing transactions”.
Financial Statements 2015
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QRegistration Document 2015
Annual Report 2015 Financial Statements 2015