AIRBUS - 2019 Financial Statements

2.7 Capital Structure and Financial Instruments Notes to the IFRS Consolidated Financial Statements /

2.7 Capital Structure and Financial Instruments

34. Total Equity

34.1 Equity Attributable to Equity Owners of the Parent The Company’s shares are exclusively ordinary shares with a par value of €1.00. The following table shows the development of the number of shares issued and fully paid:

2019

2018

(In number of shares)

Issued as at 1 January

776,367,881

774,556,062

1,784,292

1,811,819

Issued for ESOP

5,020,942

-

Issued for convertible bond

Issued at 31 December

783,173,115

776,367,881

(862,610)

(636,924)

Treasury shares

Outstanding at 31 December

782,310,505

775,730,957

Holders of ordinary shares are entitled to dividends and to one vote per share at general meetings of the Company. Equity attributable to equity owners of the parent (including purchased treasury shares) amounts to €5,975 million (2018: €9,724 million) representing a decrease of €-3,749 million. This is due to a net loss for the period of € -1,362 million and a decrease in other comprehensive income, principally related to a change in actuarial gains and losses of € -2,345 million and the mark to market revaluation of the hedge portfolio of € -1,048 million, a dividend payment of € -1,280 million (€1.65 per share), partly compensated by the decrease of €1,318 million in the valuation of the puttable liability relating to ACLP (see “– Note 37.2: “Carrying Amounts and Fair Values of Financial Instruments”). Capital stock comprises the nominal amount of shares outstanding. The addition to capital stock represents the contribution for exercised options by employees of €1,784,292 (2018: €1,811,819) in compliance with the implemented ESOPs and the conversion of € 5,020,942 in relation to the convertible bond issued in July 2015 redeemable in shares. Share premium mainly results from contributions in kind in the course of the creation of the Company, cash contributions from the Company’s initial public offering, capital increases and reductions due to the issuance and cancellation of shares. Retained earnings include mainly the loss for the period and the changes in other comprehensive income from remeasurements of the defined benefit pension plans net of tax which amounts to € -2,345 million in 2019 (2018: € -569 million), and cash dividend payments to Airbus SE shareholders. On 10 April 2019, the AGM 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 proposes a cash distribution payment of €1.80 per share.

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 increased to 862,610 compared to 636,924 as of 31 December 2018. No shares were sold back to the market nor cancelled (2018: 0 shares). On 10 April 2019, the 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-month 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.

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Airbus / Financial Statements 2019