AIRBUS - 2019 Registration Document

REGISTRATION DOCUMENT 2018

Management’s Discussion and Analysis of Financial Condition and Results of Operations  /   2.1 Operating and Financial Review

Currency Translation Mismatch Customer advances (and the corresponding revenues recorded when sales recognition occurs) are translated at the exchange rate prevailing on the date they are received (historical rates of customer advances). US dollar-denominated costs are converted at the exchange rate prevailing on the date they are incurred (historical rates of US dollar-denominated costs). To the extent those historical rates and the amounts received and paid differ, there is a foreign currency exchange impact (mismatch) on EBIT. Additionally, the magnitude of any such difference, and the corresponding impact on EBIT, is sensitive to variations in the number of deliveries and spot rate (€/US$). 2.1.2.5 Accounting for Sales Financing Transactions in the Financial Statements The accounting treatment of sales financing transactions varies based on the nature of the financing transaction and the resulting exposure. Please refer to the “Notes to the IFRS Consolidated

Financial Statements — Note 19: Other Investments and Other Long-Term Financial Assets”, “Note 22: Provisions, Contingent Assets and Contingent Liabilities” and “Note 25: Sales Financing Transactions”. For further information on the significance of sales financing transactions for the Company, see “— 2.1.6.4 Sales Financing”. 2.1.2.6 Provisions for Onerous Contracts Provisions for onerous contracts are reviewed and reassessed regularly. However, future changes in the assumptions used by the Company or a change in the underlying circumstances may lead to a revaluation of past provisions for onerous contracts and have a corresponding positive or negative effect on the Company’s future financial performance. Please refer to the “Notes to the IFRS Consolidated Financial Statements — Note 2: Significant Accounting Policies — Provisions for Onerous Contracts” and “Note 22: Provisions, Contingent Assets and Contingent Liabilities”.

2

2.1.3 Performance Measures

2.1.3.1 Business Segments The following tables summarise the measures for the activities of the Company’s business segments for the past three years and for the three-month period ended 31 March 2019 and 2018, when available.

Airbus

Three-month period ended 31 March 2019 (unaudited)

Three-month period ended 31 March 2018 (unaudited)

Year ended 31 December 2018

Year ended 31 December 2017 as restated

Year ended 31 December 2017 as reported

Year ended 31 December 2016 as reported

(In € million)

Revenue

9,697

7,222

47,970

43,486

50,958

49,237

EBIT

392

(2)

4,295

2,257

3,428

1,543

in % of revenue

4.0%

(0.0%)

9.0%

5.2%

6.7%

3.1%

Airbus Helicopters

Three-month period ended 31 March 2019 (unaudited)

Three-month period ended 31 March 2018 (unaudited)

Year ended 31 December 2018

Year ended 31 December 2017 as restated

Year ended 31 December 2017 as reported

Year ended 31 December 2016 as reported

(In € million)

Revenue

1,007

961

5,934

6,335

6,450

6,652

EBIT

9

(10)

366

247

337

308

in % of revenue

0.9%

(1.0%)

6.2%

3.9%

5.2%

4.6%

Airbus Defence and Space

Three-month period ended 31 March 2019 (unaudited)

Three-month period ended 31 March 2018 (unaudited)

Year ended 31 December 2018

Year ended 31 December 2017 as restated

Year ended 31 December 2017 as reported

Year ended 31 December 2016 as reported

(In € million)

Revenue

2,112

2,217

11,063

10,596

10,804

11,854

EBIT

(117)

265

676

462

212

(93)

in % of revenue

(5.5%)

12.0%

6.1%

4.4%

2.0%

(0.8%)

77

Airbus / Registration Document 2018