AIRBUS - 2020 Financial Statement

2. Notes to the IFRS Consolidated Financial Statements / 2.4 Airbus Performance

Segment order backlog

31 December

2020

2019

(In € million)

(in %)

(In € million)

(in %)

Airbus

324,675

87

424,082

90

15,782

4

16,627

3

Airbus Helicopters

33,505

9

32,263

7

Airbus Defence and Space

(835)

0

(1,484)

0

Eliminations

373,127

100

471,488

100

Total

As of 31 December 2020, the total backlog represents the aggregate amount of the transaction price allocated to the unsatisfied and partially unsatisfied performance obligations to the Company’s customers. Backlog commitments are relative to the Company’s enforceable contracts with its customers where it is probable that the consideration will be collected. The value of the backlog is measured in accordance with the revenue recognition standard (IFRS 15). As a result, contractual rebates, engines concessions, and variable considerations are taken into consideration for measurement. Contracts stipulated in a currency different than the presentation currency are translated

to euro using the spot rate as of 31 December 2020 and 2019 respectively. Adjustments to the value of the backlog could result from changes in the transaction price. The backlog valuation is based on the estimates and assumptions (see “– Note 4: Key Estimates and Judgements”) and will mainly be released into revenue over a period of seven years. The decrease reflects the higher number of deliveries as compared to order intake, the weakening of the US dollar and a thorough reassessment of the recoverability of the order backlog.

2.4 Airbus Performance

12. Revenue and Gross Margin

Revenue decreased by € -20,566 million to € 49,912 million (2019: € 70,478 million). The decrease is mainly driven by Airbus (€ -20,518 million) reflecting lower deliveries of 566 aircraft (in 2019: 863 aircraft) in line with the production adaptation plan set out in April 2020 in response to the COVID-19 pandemic (see “– Note 2: Impact of the COVID-19 pandemic”). Revenue by geographical areas based on the location of the customer is as follows:

2020

2019

(In € million)

Asia-Pacific

13,087

22,625

20,325

22,591

Europe

8,688

12,036

North America

3,123

7,053

Middle East

983

1,851

Latin America

Other countries

3,706

4,322

Total

49,912

70,478

The gross margin decreased by €-4,843 million to €5,662 million compared to €10,505 million in 2019. It mainly reflects lower deliveries and lower cost efficiency at Airbus. The gross margin rate decreased from 14.9% to 11.3%. As of 31 December 2018, the Company’s largest A380 operator reviewed its aircraft fleet strategy going forward and concluded it is forced to restructure and reduce its A380 order by 39 aircraft. As a consequence of this decision, deliveries of the A380 will cease in 2022.

At year-end 2018, the Company impaired specif ic A380 assets in the amount of €167 million, recognised an onerous contract provision for an amount of €1,257 million and updated the measurement of refundable advances including interest accretion for a total amount of €1,426 million. As a consequence, the recognition of the onerous contract provision as well as other specific provisions and the remeasurement of the liabilities affected the consolidated income statement before taxes by a net € 463 million in EBIT and positively impacted the other financial result by €177 million.

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Airbus / Financial Statements 2020