AIRBUS - 2020 Financial Statement

2.1 Basis of Preparation 2. Notes to the IFRS Consolidated Financial Statements /

2.1 Basis of Preparation

1. The Company The accompanying IFRS Consolidated Financial Statements present the financial position and the results of operations of Airbus SE together with its subsidiaries referred to as “the Company”, a European public limited-liability company ( Societas Europaea ) with its seat ( statutaire zetel ) in Amsterdam, The Netherlands, its registered address at Mendelweg 30, 2333 CS Leiden, The Netherlands, and registered with the Dutch Commercial Register ( Handelsregister ) under number 24288945.

The Company’s reportable segments are Airbus, Airbus Helicopters and Airbus Defence and Space (see “– Note 11: Segment Information”). The Company is listed on the European stock exchanges in Paris, Frankfurt amMain, Madrid, Barcelona, Valencia and Bilbao. The IFRS Consolidated Financial Statements were authorised for issue by the Company’s Board of Directors on 17 February 2021.

2.

Impact of the COVID-19 pandemic

2.1

Going concern and associated liquidity measures

The COVID-19 pandemic, the resulting health and economic crisis and actions taken in response to the spread of the pandemic, including government measures and travel limitations and restrictions, have resulted in significant disruption to the Company’s business operations and supply chain. A number of measures have been taken by the Company to implement stringent health and safety procedures while taking account of stock levels and production lead-times. The aerospace industry including the f inancial health of operators, airlines, lessors and suppliers, commercial aircraft market, demand for air travel and commercial air traffic have been severely impacted by the COVID-19 pandemic. As a result, airlines have reduced capacity, grounded large portions of their fleets temporarily, sought to implement measures to reduce cash spending and secure liquidity. Some airlines are also seeking arrangements with creditors, restructuring or applying for bankruptcy or insolvency protection, which may have further consequences for the Company and its order book as well as other consequences resulting from the related proceedings. On 8 April 2020, the Company announced its decision to adapt commercial aircraft production rates to 40 per month for the A320 Family, two per month for A330 and six per month for A350 in response to the new COVID-19 market environment. Subsequently, the rate for A350 was further reduced to five per month. This represented a reduction of the March 2020 pre-COVID-19 average rates of roughly one third. With these new rates, the Company intends to preserve its ability to meet customer demand while protecting its ability to further adapt as the global market evolves. The Company is monitoring the evolution of the COVID-19 pandemic and will continue to assess further impacts going forward. The main elements related to the Consolidated Financial Statements considered as of 31 December 2020 are detailed in the following sections. A consistent set of assumptions has been applied for each of the below elements. The Company’s business, results of operations and financial condition have been and will continue to be materially affected by the COVID-19 pandemic, and the Company continues to face significant risks and uncertainties related to the COVID-19 pandemic and its resulting health and economic crisis.

On 23 March 2020, the Company has announced measures to bolster its liquidity and balance sheet in response to the COVID-19 pandemic, including a new € 15 billion credit facility partially termed out by bond and USPP issuances, the withdrawal of 2019 dividend proposal with cash value of €1.4 billion, the suspension of voluntary top up pension funding and strong focus on support to customers and delivery. In parallel, governmental partners have supported the aerospace sector since the beginning of the crisis either through direct support to airlines and suppliers, or through partial unemployment schemes. With these decisions, the Company has available liquidity to cope with additional cash requirements, including the amended production rates as described above. On 21 October 2020, the Company signed a new € 6 billion Revolving Syndicated Credit Facility also partially terming out the €15 billion credit facility by €3 billion in order to refinance its existing €3 billion Revolving Syndicated Facility (see “– Note 37: Net Cash”). As of 31 December 2020, the Company has a net cash position of €4.3 billion with a total liquidity of €33.6 billion, before deducting short-term financing liabilities. Based on the above, management considers the Company has sufficient resources to continue operating for at least 12 months and that there are no material uncertainties about the Company’s ability to continue as a going concern. Goodwill impairment As a result of the deterioration in the economic environment and the uncertainty in the business outlook, the Company has performed impairment tests of goodwill throughout the year and also as at 31 December 2020, which leads to no impairment being necessary (see “– Note 20: Intangible Assets”). These tests have been per formed in l ine with existing methodology for each of the Company’s cash generating units (CGUs). Cash flow projections are based on latest operative planning and expected cash flows beyond the planning horizon 2.2

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Airbus / Financial Statements 2020