AIRBUS - 2019 Universal Registration Document

Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2.1 Operating and Financial Review

ORDER BACKLOG

31 December

2019

2018

2017

(In € billion) (In percentage) (1)

(In € billion) (In percentage) (1)

(In € billion) (In percentage) (1)

Airbus

424.1

89.7% 411.7

89.1% 950.4

95.1%

3.2% 11.2

1.1%

Airbus Helicopters

16.6

3.5% 14.9

7.7% 37.4

3.8%

Airbus Defence and Space

32.3

6.8% 35.3

100% 999.0

100%

Subtotal segmental order backlog

473.0

100% 461.9

Transversal / Eliminations

(1.5)

(2.4)

(2.1)

Total

471.5

459.5

996.8

(1) Before “Transversal / Eliminations”.

2019 compared to 2018. The € 12.0 billion increase in order backlog to €471.5 billion (2018: €459.5 billion) which represents about 7 times our 2019 revenues, reflecting the strengthening of the Company’s backlog. Airbus’ backlog increased by € 12.4 billion to € 424.1 billion. While the book to bill ratio in units was below 1 (calculated using units of new net orders, i.e. new net orders in units divided by deliveries in units), the value of the backlog has slightly increased year on year. Order intake consisted of 768 net orders in 2019 (as compared to 747 in 2018), driven mainly by the A320 Family, which received 654 net firm orders (662 A320neo and -8 A320ceo) and included 63 A220s. Total order backlog at Airbus amounted to 7,482 aircraft at the end of 2019 (as compared to 7,577 aircraft at the end of 2018). Airbus Helicopters’ backlog increased by € 1.7 billion to € 16.6 billion and the book-to-bill ratio was above 1 in terms of value, a good performance in a difficult market environment. Airbus Helicopters received 310 net orders in 2019 (as compared to 381 in 2018). Total order backlog amounted to 695 helicopters at the end of 2019 (as compared to 717 helicopters at the end of 2018). Airbus Defence and Space’s backlog decreased by € -3.0 billion to € 32.3 billion and the book-to-bill ratio in value amounted to 0.8 with new net orders of € 8.5 billion, supported by A400M service contracts and key contract wins in Space.

2018 compared to 2017. Due to implementation of IFRS 15, no comparison in terms of value was made between 2018 and 2017. The decrease in the Company’s order backlog in terms of value primarily reflected the change in measurement principles, especially the use of contractual price versus catalogue price. Airbus’ book-to-bill ratio amounted to 0.9 (calculated using units of new net orders, i.e. new net orders in units divided by deliveries in units). Order intake consisted of 747 net orders in 2018 (as compared to 1,109 in 2017), driven mainly by the A320 Family, which received 541 net firm orders (531 A320neo and 10 A320ceo) and included 135 A220s. Total order backlog at Airbus amounted to 7,577 aircraft at the end of 2018 (as compared to 7,265 aircraft at the end of 2017). Airbus’ backlog included Airbus Canada (formerly CSALP). This represented a record year-end level of backlog in units, showing the underlying health of the market. Airbus Helicopters’ book-to-bill ratio was above 1 in terms of units. Airbus Helicopters received 381 net orders in 2018 (as compared to 335 in 2017). Total order backlog amounted to 717 helicopters at the end of 2018 (as compared to 692 helicopters at the end of 2017). Airbus Defence and Space’s book-to-bill ratio amounted to ~0.8 with new net orders of € 8.4 billion, supported by key contract wins including the Eurofighter contract with Qatar, 4 A330 MRTT Tankers and 2 new generation telecommunication satellites.

The following table illustrates the proportion of civil and defence backlog at the end of each of the past three years.

31 December

2019

2017

2018

(In € billion) (1)

(In percentage) (In € billion) (1)

(In percentage) (In € billion) (1)

(In percentage)

Civil sector

433.4

92% 420.2

91% 959.9

96%

4%

Defence sector

38.1

8% 39.3

9% 36.9

Total

471.5

100% 459.5

100% 996.8

100%

(1) Including “Transversal / Eliminations”.

86

Airbus / Annual Report – Registration Document 2019