AIRBUS - 2020 Financial Statement

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

2.7 Capital Structure and Financial Instruments

35. Total Equity

35.1 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:

2020

2019

(In number of shares)

Issued as at 1 January

783,173,115

776,367,881

976,155

1,784,292

Issued for ESOP

Issued for convertible bond

0

5,020,942

784,149,270

783,173,115

Issued at 31 December

(432,875)

(862,610)

Treasury shares

Outstanding at 31 December

783,716,395

782,310,505

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 €6,445 million (2019: €5,975 million) representing an increase of €+470 million. This is mainly due to an increase in other comprehensive income, principally related to the mark to market revaluation of the hedge portfolio of €+2,783 million offset by a change in actuarial gains and losses of € -1,268 million, further compensated by a net loss for the period of € -1,133 million. Capital stock comprises the nominal amount of shares outstanding. The addition to capital stock represents the contribution for exercised options by employees of €976,155 (2019: €1,784,292) in compliance with the implemented ESOPs. In 2019, it represents 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 € -1,268 million in 2020 (2019: € -2,345 million). On 23 March 2020, the Company has decided the withdrawal of 2019 dividend proposal with cash value of € 1.4 billion in response to the COVID-19 pandemic (see “– Note 2: Impact of the COVID-19 pandemic”). Given the ongoing volatility, there will be no dividend proposal for 2020. Treasury shares represent the amount paid or payable for own shares held in treasury. During 2020, the number of treasury stock held by the Company decreased to 432,875 compared

to 862,610 as of 31 December 2019, mainly due to the vested shares in 2020 under LTIP 2016 (see “– Note 33: Share-based Payment”). No shares were sold back to the market nor cancelled (2019: 0 shares). On 16 April 2020, the AGM of the Company authorised the Board of Directors, for a period expiring at the AGM to be held in 2021, 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 33: 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 37.3: 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 16 April 2020, 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 2020