AIRBUS - 2020 Universal Registration Document

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

2.1 Operating and Financial Review

which hedged US dollar-denominated revenues were accounted for was €/US$1.19, as compared to €/US$1.24 in 2019. During 2019, cash f low hedges covering approximately US$24.0 billion of the Company’s US dollar-denominated net exposure matured. In 2019, the compounded exchange rate at which hedged US dollar-denominated revenues were accounted for was €/US$1.24, as compared to €/US$1.24 in 2018.

the impact that hedging activities have on the Company’s EBIT, the latter is also affected by the impact of revaluation of certain assets and liabilities at the closing rate and the impact of natural hedging. During 2020, cash f low hedges covering approximately US$17.1 billion of the Company’s US dollar-denominated net exposure matured. In 2020, the compounded exchange rate at

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2.1.4 Results of Operations

The following table summarises the IFRS Company’s Consolidated Income Statements for the past three years:

2020

2019

2018

(In € million)

Revenue

49,912

70,478

63,707

Cost of sales

(44,250)

(59,973) 10,505 (6,125) (3,358)

(54,920)

Gross margin

5,662

8,787

Selling and administrative expenses Research and development expenses

(2,140) (2,858)

(2,435) (3,217)

Other income

132

370

1,656

Other expenses

(1,458)

(356)

(182)

Share of profit from investments accounted for under the equity method and other income from investments

152

303

439

Profit before finance costs and income taxes

(510)

1,339

5,048

Interest result

(271)

(111)

(232) (531)

Other financial result

(349)

(164)

Income taxes

(39)

(2,389)

(1,274)

(Loss) Profit for the period

(1,169)

(1,325)

3,011

Attributable to Equity owners of the parent (Net income)

(1,133)

(1,362)

3,054

Non-controlling interests

(36)

37

(43)

Earnings per share

Basic

(1.45) (1.45)

(1.75) (1.75)

3.94 3.92

Diluted

2.1.4.1 Revenues The following table presents a breakdown of the Company’s revenues by Business segment for the past three years:

2020

2019

2018

(In € million)

Airbus

34,250

54,775

47,970

Airbus Helicopters

6,251

6,007

5,934

Airbus Defence and Space

10,446 50,947

10,907 71,689

11,063

Subtotal segmental revenue

64,967

Eliminations

(1,035)

(1,211)

(1,260)

Total

49,912

70,478

63,707

Revenues decreased by 29.2%, from €70.5 billion for 2019 to €49.9 billion for 2020, re ecting mainly lower commercial aircraft deliveries at Airbus.

For 2019, revenues increased by 10.6%, from €63.7 billion for 2018 to €70.5 billion for 2019, re ecting mainly higher commercial aircraft deliveries and a favourable mix at Airbus.

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Airbus / Registration Document 2020

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