AIRBUS - 2019 Financial Statements

2.6 Employees Costs and Benefits Notes to the IFRS Consolidated Financial Statements /

Post-Employment Benefit Costs Post-employment benefit costs relate to the aggregated amount of current service and interest costs for defined benefit plan and company cost for contributions base plans. Following the Board decision to move from defined benefit commitment to contributions based plans and in line with a new French regulation, the CEO pension rights will be accrued through a defined contributions plan from 1 January 2020, which will coexist with the former defined benefit pension plan. Until the end of 2019, the retirement benefit of the CEO has been accrued through a defined benefit commitment. It consisted of granting a pension at retirement age equal to a percentage of the Base Salary depending on length in service in the Executive Committee, including mandatory applicable collective and state pension plans. The accrued pension rights under this commitment have been frozen at the end of 2019: the target percentage has therefore been fixed and will no longer accrue. The frozen pension rights remain unvested until the retirement date of the CEO. The pension rights arising from the Company’s defined contribution plan are deducted from the frozen defined pension rights. As of 31 December 2019, the defined benefit obligation related to the frozen defined benefit commitment amounts to €9,167,371. This obligation has been accrued in the 2019 Consolidated Financial Statements and will be updated annually up to the retirement date of the CEO considering additional service cost and future changes on economic assumptions or other factors like salary increase. For the fiscal year 2019, the cost related to the CEO’s pension rights accrued under Company’s plans during the year represented a net profit of € 2,814,868 composed of an expense of € 812,005 and the effect of the freeze of the defined benefit commitment leading to a release of provision of € 3,626,873. The annual cost of pension rights accrued under applicable mandatory collective and state pension plans are accounted for among social charges.

Share-Based Remuneration The table below gives an overview of the interests of the CEO, under the various LTIPs of the Company:

Granted Date

LTIP 2014 (1)

LTIP 2015 (1)

LTIP 2016 (1)

LTIP 2017 (1)

LTIP 2018 (1)

LTIP 2019

Performance Units and Shares

12,640

10,656

11,392

8,808

8,416

11,060

Revaluation

80%

75%

75%

100%

100%

100%

Performance Units and Shares revalued

10,112

7,992

8,544

8,808

8,416

11,060

Vested in 2019 in cash

7,584

2,997

0

0

0

0

in shares

2,528

0

0

0

0

0

Outstanding 2019 in cash

0

2,997

4,272

4,404

4,208

5,530

in shares

0

1,998

4,272

4,404

4,208

5,530

Vesting schedule

Cash-settled units

For vesting dates, see “– Note 32.1: LTIP”

Equity-settled units

June 2019 June 2020 May 2020 May 2021 May 2022 May 2023

(1) 2014 to 2018 awards were granted before the appointment of the CEO and could vest during the CEO’s mandate.

Vesting of all Performance Units and Performance Shares granted to the CEO is subject to performance conditions. As of 31 December 2019, provisions of €1,896,787 relating to LTIP have been recognised. The pay-out from vested cash-settled LTIP in 2019 was € 697,383 (excl. social charges).

Termination Benefits The termination benefit applicable to the CEO is described in the Company’s Remuneration policy.

Other Benefits As stipulated in the Company’s Remuneration Policy, the benefits offered to the CEO are similar to the benefits granted to other executives of the Company and comprise, among other matters, medical, death and disability coverage (both through the French social security system and mandatory collective Company’s plans), a company car and usual facilities. Costs of benefits provided through applicable mandatory collective and social security plans are accounted for among social charges. The monetary value of other benefits provided to the CEO in 2019 amounted to € 33,802. The Company has not provided any loans to, advances to and guarantees on behalf of the CEO.

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Airbus / Financial Statements 2019