AIRBUS - 2019 Financial Statements

2.2 Airbus Structure Notes to the IFRS Consolidated Financial Statements /

8.

Investments Accounted for under the Equity Method

31 December

2019

2018

(In € million)

Investments in joint ventures

1,444

1,484

182

209

Investments in associates

Total

1,626

1,693

Investments accounted for under the equity method decreased by € -67 million to €1,626 million (2018: €1,693 million). They mainly include the equity investments in ArianeGroup, MBDA and ATR GIE.

8.1 Investments in Joint Ventures The joint ventures in which the Company holds an interest are structured in separate incorporated companies. Under joint arrangement agreements, unanimous consent is required from all parties to the agreement for all relevant activities. The Company and its partners have rights to the net assets of these entities through the terms of the contractual agreements. The Company’s interest in its joint ventures, accounted for under the equity method, is stated in aggregate in the following table:

2019

2018

(In € million)

Carrying amount of the investments at 1 January

1,484

1,424

264

291

Share of results from continuing operations

(82)

(15)

Share of other comprehensive income

(225)

(182)

Dividends received during the year

3

(34)

Others

Carrying amount of the investments at 31 December

1,444

1,484

The Company’s individually material joint ventures are ArianeGroup, Paris (France), MBDA S.A.S., Paris (France), and ATR GIE, Blagnac (France), as parent companies of their respective groups. These joint venture companies are not publicly listed. ArianeGroup is a 50% joint venture between the Company and Safran. ArianeGroup is the head company in a group comprising several subsidiaries and affiliates, all leading companies in their fields, such as: APP, Arianespace, Cilas, Eurockot, Eurocryospace, Europropulsion, Nuclétudes, Pyroalliance, Regulus, Sodern and Starsem. ArianeGroup inherits a rich portfolio of products and services, enabling it to deliver innovative and competitive solutions to numerous customers around the world.

The Company holds a 37.5% stake in MBDA at 31 December 2019, which is a joint venture between the Company, BAE Systems and Leonardo. MBDA offers missile systems capabilities that cover the whole range of solutions for air dominance, ground-based air defence and maritime superiority, as well as advanced technological solutions for battlefield engagement. ATR GIE manufactures advanced turboprop aircraft. It is a 50% joint venture between Leonardo group company and the Company. Both Leonardo and the Company provide airframes which are assembled by ATR GIE in France. The members of ATR GIE are legally entitled exclusively to the benefits and are liable for the commitments of the Company. ATR GIE is obliged to transfer its cash to each member of the joint venture.

24

Airbus / Financial Statements 2019