AIRBUS - 2019 Financial Statements

Notes to the IFRS Company Financial Statements /

4.1 Basis of Presentation

1. The Company The Company’s principal activity is acting as a holding and management company for the subsidiaries of Airbus SE , the “Company”, a listed company in the form of a European public limited-liability company ( Societas Europaea ), legally seated in Amsterdam (current registered office at Mendelweg 30, 2333 CS Leiden, The Netherlands) and registered at the Dutch

Commercial Register (Handelsregister) in The Hague under number 24288945. The Company is listed on the European stock exchanges in Paris, Frankfurt amMain, Madrid, Barcelona, Valencia and Bilbao. The IFRS Financial Statements were authorised for issue by the Company’s Board of Directors on 12 February 2020.

2.

Significant Accounting Policies

Basis of preparation — The Company’s Financial Statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), issued by the International Accounting Standards Board (“IASB”) as endorsed by the European Union (“EU”) and with Part 9 of Book 2 of the Netherlands Civil Code. They are prepared and reported in euro (“€”) and all values are rounded to the nearest million appropriately. Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. In the Company Financial Statements of Airbus SE, unless otherwise disclosed, the same accounting principles have been applied as set out in the Notes to the Consolidated Financial Statements, except for the valuation of the investments as presented under investments in subsidiaries and associates in the Company Financial Statements. These policies have been consistently applied to all years presented. In the Company Financial Statements, the investments in subsidiaries and associates are recorded at acquisition cost. In the Company Statement of Income, dividends received from investments are recorded as dividend income.

Due to this application, the Company equity and net result are not equal to the consolidated equity and net result. A reconciliation of the total shareholders’ equity and profit for the period is presented in Note 12 “Total Equity” to the Company Financial Statements. The Company Financial Statements have been prepared on a historical cost basis, except for the equity instruments, securities and derivative instruments that have been measured at fair value. Regarding the application of new, revised or amended IFRS issued and applying from January 1, 2019 and issued but not yet applied please refer to Note 4 “Change in Accounting Policies and Disclosure” of the Group’s Consolidated Financial Statements. The implementation of IFRS 16 and IFRIC 23 has had no significant impact on the financial statement of the company. In addition, no material changes are expected in the Company Financial Statements of Airbus SE from the implementation of the new standards not yet applied. Further information about Share-Based Payments and Employee Stock Ownership Plans (ESOP) is presented in Note 32 and information about Remuneration is presented in Note 33 of the Consolidated Financial Statements.

A number of new or revised standards, amendments and improvements to standards as well as interpretations are not yet effective for the year ended 31 December 2019 and have not been applied in preparing these Consolidated Financial Statements and early adoption is not planned:

IASB effective date for annual reporting

Standards and amendments

periods beginning on or after Endorsement status

Amendments to References to the Conceptual Framework in IFRS

1 January 2020

Endorsed

4

Amendments to IFRS 3: Definition of a Business

1 January 2020

Not yet endorsed

Amendments to IAS 1 and IAS 8: Definition of Material

1 January 2020

Endorsed

Amendments to IFRS 9, IAS 39 and IFRS 7 “Interest Rate Benchmark Reform”

1 January 2020

Not yet endorsed

IFRS 17 “Insurance Contracts”

1 January 2021

Not yet endorsed

The information with regard to Capital Management is disclosed in Note 33, further information about Litigation and Claims refers to Note 38 and Events after the Reporting Date are disclosed in Note 40 of the Group’s Consolidated Financial Statements.

Unless reference is made to the accounting policies described in the Consolidated Financial Statements, the main accounting policies applied in the preparation of these Company Financial Statements are described in each accounting area. These accounting policies have been consistently applied to all financial years presented, unless otherwise stated.

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Airbus / Financial Statements 2019