AIRBUS - 2019 Financial Statements

Notes to the IFRS Company Financial Statements /

Authorisations Granted by the Shareholders’ General Meeting of Airbus SE Held on 10 April 2019 On 10 April 2019, the Annual General Meeting (“AGM”) of the Company authorised the Board of Directors, for a period expiring at the AGM to be held in 2020, to issue shares and to grant rights to subscribe for shares in the Company’s share capital for the purpose of: – ESOPs and share-related LTIPs, provided that such powers shall be limited to an aggregate of 0.14% of the Company’s authorised share capital (see “– Note 32: Share-Based Payment”); – funding the Company and its subsidiaries, provided that such powers shall be limited to an aggregate of 0.3% of the Company’s authorised share capital (see “– Note 36.3: Financing Liabilities”). For each operation, such powers shall not extend to issuing shares or granting rights to subscribe for shares if there is no preferential subscription right and for an aggregate issue price in excess of €500 million per share issuance. Also on 10 April 2019, the AGM authorised the Board of Directors for an 18 months period to repurchase up to 10% of the Company’s issued share capital at a price per share not less than the nominal value and not more than the higher of the price of the last independent trade and the highest current independent bid on the trading venues of the regulated market of the country in which the purchase is carried out. Furthermore, the AGM authorised both the Board of Directors and the CEO, with powers of substitution, to establish the exact number of the relevant shares to be cancelled.

Share premium mainly results from contributions in kind in the course of the creation of Airbus, cash contributions from the Initial Public Offering, capital increases and reductions due to the issuance and cancellation of shares. Retained earnings include mainly the profit of the period and cash dividend payments to Airbus SE shareholders. On 10 April 2019, the Shareholders’ General Meeting decided to distribute a gross amount of € 1.65 per share, which was paid on 17 April 2019. For the fiscal year 2019, the Company’s Board of Directors proposed at the Annual General Meeting of Shareholders that the Loss for the period of €3,665 million as shown in the income statements for the financial year 2019 is to be added to retained earnings and that a payment of a gross amount of € 1.80 per share shall be made to the shareholders – change from financial assets at fair value (see Note 13.2 “Carrying Amounts and Fair Values of Financial Instruments”); – change in fair value of derivatives designated as cash flow hedges (see Note 13.2 “Carrying Amounts and Fair Values of Financial Instruments”). According to Dutch law, the OCI is considered to be a Legal Reserve and therefore distribution is restricted. Treasury shares represent the amount paid or payable for own shares held in treasury. During 2019, the number of treasury stock held by the Company increase to 862,610 compared to 636,924 as of 31 December 2018. No shares were sold back to the market nor cancelled in 2019 (in 2018: 0 shares). out of retained earnings. Legal reserves includes:

Reconciliation Consolidated to Company Equity and Net Income The difference between the total shareholders’ equity according to the Consolidated Financial Statements and Company’s Financial Statements as at 31 December 2019 and 2018 is as follows:

2019

2018

(In € million)

Consolidated equity

5,975

9,724

OCI – Restatement of investments from Consolidated to Company Financial Statements

697

(103)

(916)

(486)

Retained Earnings – Restatement of investments from Consolidated to Company Financial Statements

1,487

2,071

Retained Earnings – Valuation investments at historical cost

(1,273)

(1,099)

Retained Earnings – Impairment of financial assets

Company’s equity

5,970

10,106

4

The difference between the net income according to the Consolidated Financial Statements and Company’s Financial Statements for the year ended 31 December 2019 and 2018 is as follows:

2019

2018

(In € million)

Consolidated net income

(1,362)

3,054

Income from investments according to Consolidated Financial Statements

(2,303)

(3,007)

34

46

Income from investments according to Company Financial Statements

(31)

(369)

Loss on / Impairment of financial assets

(3)

49

Other valuation differences

Company’s net income (Profit or loss for the period)

(3,665)

(227)

101

Airbus / Financial Statements 2019