AIRBUS - 2019 Financial Statements

2.4 Airbus Performance Notes to the IFRS Consolidated Financial Statements /

14. Share of Profit from Investments Accounted for under the Equity Method and Other Income from Investments

2019

2018

(In € million)

Share of profit from investments in joint ventures

265

291

34

39

Share of profit from investments in associates

Share of profit from investments accounted for under the equity method

299

330

4

109

Other income from investments

Share of profit from investments under the equity method and other income from investments decreased by € -136 million to €303 million compared to €439 million in 2018.

15. Other Income and Other Expenses

Other income decreased by € -1,286 million to € 370 million compared to €1,656 million in 2018. This decrease is mainly related to the exceptional release of liabilities on the A380 programme in 2018, partly compensated by the capital gains from the sale of PFW Aerospace GmbH and Alestis Aerospace S.L in 2019. For more details, see “– Note 7: Acquisitions and Disposals”.

Other expenses increased by €+174 million to € -356 million compared to € -182 million in 2018.

16. Total Financial Result

Interest income derived from the Company’s asset management and lending activities is recognised as interest accrues, using the effective interest rate method.

2

2019

2018

(In € million)

Interests on European Governments’ refundable advances

(96)

(181)

(15)

(51)

Others

Total interest result (1)

(111)

(232)

Change in fair value measurement of financial instruments

68

(340)

(69)

(238)

Foreign exchange translations on monetary items

(46)

(44)

Unwinding of discounted provisions

(117)

91

Others

Total other financial result

(164)

(531)

(275)

(763)

Total

(1) In 2019, the total interest income amounts to €228 million (2018: €208 million) for financial assets which are not measured at fair value through profit or loss. For financial liabilities which are not measured at fair value through profit or loss €-339 million (2018: €-440 million) are recognised as total interest expenses. Both amounts are calculated by using the effective interest method.

Total financial result improved by €+488 million to €-275 million compared to € -763 million in 2018. This is mainly due to the positive impact from foreign exchange valuation of monetary items for an amount of € 169 million and the revaluation from

financial instruments of €408 million. The financial result includes the financial expense of € -112 million on hedge ineffectiveness (see “– Note 11: Revenue and Gross Margin”).

31

Airbus / Financial Statements 2019