AIRBUS - 2020 Universal Registration Document
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /
2.1 Operating and Financial Review
2.1.1 Overview
military rotorcraft solutions worldwide. In 2020, it generated 79% of its total revenues in the civil sector (compared to 86% in 2019) and 21% in the defence sector (compared to 14% in 2019). As of 31 December 2020, the Company’s active headcount was 131,349 employees, a decrease compared to 2019 (134,931 employees).
With consolidated revenues of €49.9 billion in 2020, the Company is a global leader in aeronautics, space and related services. Airbus is one of the world’s leading aircraft manufacturers of passenger and freighter aircraft and related services. It is also a European leader providing tanker, combat, transport and mission aircraft, as well as one of the world’s leading space companies. In helicopters, the Company provides the most efficient civil and
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2.1.1.1 Exchange Rate Information The financial information presented in this document is expressed in euro, US dollar or pound sterling. The following table sets out, for the periods indicated, certain information concerning the exchange rate between the euro, the US dollar and the pound sterling, calculated using the official European Central Bank fixing rate:
Average
Year-end
€/US$
€/£
€/US$
€/£
31 December 2018
1.1810
0.8847
1.1450
0.8945
31 December 2019
1.1195
0.8778
1.1234
0.8508
31 December 2020
1.1422
0.8897
1.2271
0.8990
2.1.1.2 Reportable Business Segments The Company operates in three reportable business segments which re ect the internal organisational and management structure according to the nature of the products and services provided. – – Airbus – Development, manufacturing, marketing and sale of commercial jet aircraf t of more than 100 seats, aircraf t conversion and related services; development, manufacturing, marketing and sale of regional turboprop aircraft and aircraft components. It also includes the holding function of the Company and its bank activities. – – Airbus Hel icopters – Development, manufactur ing, marketing and sale of civil and military helicopters; provision of helicopter related services. – – Airbus Defence and Space – Military Aircraf t design, development, delivery, and support of military aircraft such as combat, mission, transport and tanker aircraft and their associated services. Space Systems design, development, delivery, and support of full range of civil and defence space systems for telecommunications, earth observations, navigation, science and orbi tal systems. Connected Intelligence provision of services around data processing from platforms, secure communication and cyber security. In addition, the main joint ventures design, develop, deliver, and support missile systems as well as space launcher systems. Unmanned Aerial Systems design, development, delivery and service support. Consolidation effects are reported in the column “Eliminations”. The activities related to innovation and digital transformation, formerly reported in the column “Transversal/Eliminations”, are now included in the Business segment Airbus under the new segment structure.
2.1.1.3 Significant Programme Developments in 2018, 2019 and 2020 and Other Financial Topics
A380 programme. In 2018, Airbus delivered 12 A380 aircraft. As of 31 December 2018, the Company’s largest A380 operator reviewed its aircraft eet strategy going forward and concluded it was forced to restructure and reduce its A380 order by 39 aircraft. The Company entered into discussions with the customer in late 2018 which finally resulted in the signature of a head of agreement on 11 February 2019. Without this customer’s A380 order, the Company had no substantial order backlog and no basis to sustain A380 production, despite all sales and marketing efforts in recent years. As a consequence of this decision, deliveries of the A380 would cease in 2022. At year-end 2018, in view of the above, the Company reassessed accordingly the expected market assumptions and the recoverability and depreciation method of specific assets allocated to the A380 programme. As a result, the Company impaired specific 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 as of 31 December 2018. Airbus delivered four A380 aircraft in 2020 and eight A380 aircraf t in 2019. As part of its continuous assessment of assets recoverability and quarterly review of onerous contract provision assumptions, the Company recorded a net charge of € 320 million in EBIT in 2020 and of € 99 million in 2019.
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Airbus / Registration Document 2020
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