AIRBUS - 2020 Universal Registration Document

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /

2.1 Operating and Financial Review

2020 compared to 2019. The € -98.4 billion decrease in order backlog to €373.1 billion (2019: €471.5 billion), re ected higher number of deliveries compared to order intake, the weakening of the US dollar and an assessment of the order backlog’s recoverability. Airbus’ backlog decreased by € -99.4billion to €324.7billion. The book to bill ratio in units was below one (calculated using units of new net orders, i.e. new net orders in units divided by deliveries in units). Total order backlog at Airbus amounted to 7,184 aircraft at the end of 2020 (as compared to 7,482 aircraft at the end of 2019). Order intake consisted of 268 net orders in 2020 (as compared to 768 in 2019), including mainly 263 net firm orders of the A320 Family and 30 A220s. Airbus Helicopters’ backlog decreased by € -0.8 billion to €15.8 billion and the book-to-bill ratio amounted to 0.9 in terms of value, including 31 NH90s for the German Bundeswehr and 11 H160s. Airbus Helicopters received 268 net orders in 2020 (as compared to 310 in 2019). Total order backlog amounted to 663 helicopters at the end of 2020 (as compared to 695 helicopters at the end of 2019). Airbus Defence and Space’s backlog increased by €1.2 billion to €33.5 billion and the book-to-bill ratio in value amounted to 1.1 with new net orders of €11.9 billion, mainly driven by major contract wins in Military Aircraft, including a contract to deliver 38 new Eurofighters for the German Air Force.

2019 compared to 2018. The €12.0 billion increase in order backlog to €471.5 billion (2018: €459.5 billion) which represented about seven times our 2019 revenues, re ecting 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 one (calculated using units of new net orders, i.e. new net orders in units divided by deliveries in units), the value of the backlog 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 one 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.

2

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

31 December

2020

2019

2018

(In € billion) (In percentage) (1)

(In € billion) (In percentage) (1)

(In € billion) (In percentage) (1)

Civil sector

334.5

90% 433.4 10% 38.1 100% 471.5

92% 420.2

91%

Defence sector

38.6

8% 39.3

9%

Total

373.1

100% 459.5

100%

(1) Including “Eliminations”.

2.1.3.3 EBIT Adjusted The Company uses an alternative performance measure EBIT Adjusted as a key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructurings or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses. The following table reconciles the Company’s EBIT with its EBIT Adjusted.

2020

2019

2018

(In € million)

EBIT

(510)

1,339

5,048

PDP mismatch / BS revaluation

480 385

170 202

(129)

A380 programme

463 436

A400M charge

63

1,212 3,598

Penalties

0

0

Compliance costs

87

206 (111) 221

123

2 0

(188)

M&A impact (1)

Defence export ban

0 8

1,199

103

Restructuring provision (2)

Other costs

0

6

73

EBIT Adjusted

1,706

6,946

5,834

(1) Including net capital gains from PFW Aerospace GmbH (€ -57 million) and Alestis Aerospace SL (€ -45 million) in 2019, and Plant Holdings, Inc (€ -159 million) in 2018. (2) Including workforce adaptation recognised in 2020 (€1,202 million).

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Airbus / Registration Document 2020