IT FLY” “WE MAKE “WE ANNUAL REVIEW 2013 ANNUAL

AIRBUS GROUP – ANNUAL REVIEW 2013 ANNUAL REVIEW 2013 — WE MAKE IT FLY “WE MAKE MAKE “WE IT FLY”IT 32 &Perspectives -Markets -Strategy 30 28 - 26 -Share Information 24 F -Key Financial COMPETITIVENESS ENHANCING GLOBAL / 18 -Management Structure 16 Committee Executive -Group I 14 Officer’s Executive -Chief 12 Board -The of Directors 10 - DRIVING OUR DEVELOPMENT / -The 06 2013 in Group -The 04 02 -Profile 01 becomes Airbus Group -EADS CONTENTS 64 -Addresses64 -Photo63 Contest 62 -Shareholder Information Management /Programme Chain -Supply 60 - 58 56 -Eco-efficiency - 54 CULTURE OUR BUILDING / Helicopters 50 -Airbus Defence -Airbus 44 Space and -Airbus 40 Organisation Group -Airbus 38 GOALS OUR ACHIEVING / 22 - 02 01 04 03 Innovation Engaged People 48 -Astrium 48 46 -Cassidian Military -Airbus 45 the Chairman of the Board of the Chairman the Let and Marketing Officer Marketing and I the Chief Financial Officer Financial Chief the Inte nterview with the Chief Strategy Chief the with nterview

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EADS BECOMES — ANNUAL REVIEW 2013 REVIEW FLY IT — ANNUAL MAKE WE

AND HAS 3 DIVISIONS: AIRBUS AIRBUS DEFENCE AND SPACE AIRBUS HELICOPTERS

1 NAME, 3 DIVISIONS, 1 MISSION.

01 02 ANNUAL REVIEW 2013 — WE MAKE IT FLY 2013 PROFILE

€ 686.7 billion order book

€ 59.3 billion revenues — ANNUAL REVIEW 2013 REVIEW FLY IT — ANNUAL MAKE WE

€ 1.85 earnings per share

dividend* per share € 0.75 *To be proposed to the Annual General Meeting

990 patent filings in 2013

144,061 employees

03 04 ANNUAL REVIEW 2013 — WE MAKE IT FLY — THE GROUP IN 2013 Order book Order Revenues € m REVENUES BY REGION (3) AIRBUS GROUP AIRBUS GROUP — EADS IN2013 Airbus Group is a global leader in aeronautics, Airbus Group isagloballeaderinaeronautics, EUROPE space and related services. space andrelated services. 161,943 21,048 2013 36 % ASIA-PACIFIC 221,426 19,557 2013 33 %

THE GROUP IN 2013 — WE MAKE IT FLY — ANNUAL REVIEW 2013 05 +1% +5% +3% -26% +21% +24% +25% +27% +22% +113% Change 7% (a) (a) (a) 0.60 2012 3,142 1.46 1,197 2,144 12,292 56,480 102,471 140,405 566,493 2013 4,411 60,277 (2) 1.85 AFRICA / CENTRAL AND SOUTH AMERICA 2013 3,160 1,465 9,054 0.75 2,661 59,256 144,061 218,681 686,734 (1) Airbus(1) Group continues use to the term NetIncome. It is identical Profitto for the period attributableto equity owners of the parent as defined by IFRS Rules. be proposed To (2) the to Annual General Meeting. intake Order to activities aircraft commercial from Contributions (3) and Order book based on list prices. REVENUES Group revenues increased mainly 5%, reflecting higher commercial aircraft deliveries and the A400M stable. were revenues Defence ramp-up. € € € m € m € m € m € m € m € m 9% 2013 5,459 122,861 MIDDLE EAST MIDDLE 15% (1)

2013 rose sharply, reflecting strong commercial 8,781 (3) (3) (3) (1) 120,227 Unless otherwise indicated, EBIT* figures presented in this report are Earnings Before (a) Certain year-end figures 2012 in this report have been restatedto reflect the change pensionto accounting under IAS while 19 Airbus’ figures reflect Other in the Included inclusion formerly were Sogerma and ATR of and ATR Commercial. Airbus within Sogerma Businesses. * Interest and Taxes, pre goodwill impairment and exceptionals. NORTH AMERICA NORTH 2013 RESULTS RESULTS 2013 Airbus Group reported improved full year profits, driven by increased aircraft deliveries and operational improvement. Order intake momentum at Airbus and major contracts in the space business. space the in contracts major and Airbus at momentum AIRBUS GROUP — EADS Order Book Order Employees Dividend per share per Dividend position Cash Net Order Intake Earnings per share Revenues expenses Development & Research EBIT* Income Net 06 ANNUAL REVIEW 2013 — WE MAKE IT FLY — YEAR IN REVIEW IN REVIEW Group’s success. to the commitment strong of their recognition in to employees 10 shares free granting approved of Directors Board The EMPLOYEES FOR SHARES 10 FREE 31 May 2013 70%. to above increase float free the to support programme buyback ashare approved Board the Afterwards, Directors. of new election the corporate governance overhaul, including the approved shareholders Meeting, General Extraordinary Voting EADS’ at GOVERNANCE MAKE-OVER SHAREHOLDERS APPROVE 27 March 2013 AIRBUS GROUP GROUP —EADS YEAR (2)

2013

MAIDEN FLIGHT FLIGHT MAIDEN COMPLETES XWB A350 FIRST 14 June 2013 aviation. for frontier a new technology demonstrator opened of ahelicopter, this capabilities flight full and aircraft of aturboprop (472 km/hr)speed the With flight. level in X The SETS SPEED RECORD X 11 June 2013 fuel costs and carbon dioxide emissions. emissions. dioxide carbon and costs fuel propulsion technologies that lower aircraft electric new on focus will companies the Aircraft, Diamond Together with PARTNERSHIP INTO LONG-TERM RESEARCH EADS AND SIEMENS ENTER 18 June 2013 of 2014.end the by entry-into-service planned and development, of ahead certification its of stage final the entering flight, test first its completed successfully aircraft, long-range new Airbus’ XWB, A350 The speed record, flying at 255 knots knots at 255 flying record, speed 1 3 3 HYBRID DEMONSTRATOR 3 broke the unofficial helicopter helicopter unofficial the broke (3)

cohesion. and integration to aid brand, Airbus Divisions under the globally-recognised its and EADS to rename plans announced also It Division. Space and Defence Airbus the creating activities, space and defence its to integrate plans unveiled review, Group the astrategy Following RESTRUCTURING REVEALED ADOPTION OF AIRBUS AND BRAND 31 July 2013 anywhere. anytime, to perform ability its demonstrating expectations, beyondThe NH90 performed conditions. desert in forces special by following intense tests of the helicopter Helicopters, Tactical34 NH90 Transport The French Forces Armed ordered HELICOPTERS MILITARY NH90 34 ORDERS FRANCE 19 June 2013 2 (1)

YEAR IN REVIEW — 07

Scan here or visit A400M (Photo Contest winner) reports.airbus-group.com www. 2 billion. This confirmed the 14 December 2013 December 14 ASTRIUM TO BUILD NEW 18 LAUNCHERS 5 ARIANE Arianespace, the world’s leading satellite launch additional ordered company, 18 Ariane launchers, 5 ECA worth more than € effectiveness an of industrial model that comprises more than 550 companies, and European over 6,000 people, in 12 countries.

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5 7

(6) Eurofighter Typhoon. Typhoon. Eurofighter th Dubai Airshow, worth th EUROFIGHTER EUROFIGHTER 44 billion, underlined 44 billion, the strong 20 20 billion. TH US$ demand for Airbus wide-body aircraft. Emirates placed the single largest A total of 160 orders 160 A total of and commitments The German Air Force took delivery theof 400 The aircraft has proved its operational effectiveness years service, of over 10 and now secures the airspace the of six nations where it is in service, 24 hours seven days a week.a day, TYPHOON DELIVERED 20 November 2013 November 20 ORDERS 160 WINS AIRBUS AND COMMITMENTS WORTH US$44 BILLION at the 13 for 50 additionalorder, A380s, worth US$ 2013 4 December 400

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TH (4) 6 4 The Ariane 5 rocket launched two orbit, into satellites telecommunications once again confirming its position as the world’s most reliable satellite launcher, guaranteed for standard the setting and space. access to ever developed. 2013 August 29 ARIANE 5 COMPLETES 57 to 40,000 people,to the first A400M delivered. was airlifter new-generation The A400M is the most cost-efficient and versatile military transport aircraft After 10 yearsAfter development of 10 and test hours,5,000 flight involving close 1 August 2013 1 August FIRST DELIVERS MILITARY AIRBUS A400M TO FRENCH AIR FORCE SUCCESSFUL LAUNCH

WE MAKE IT FLY

Management and Governance. The Board and Management implemented a major overhaul of the Group’s governance and shareholder structure, bringing a significant increase in the free float. ANNUAL REVIEW — 2013

08 / 01 “DRIVING OUR DEVELOP- 2013 REVIEW FLY IT — ANNUAL MAKE WE MENT”

09 10 ANNUAL REVIEW 2013 — DRIVING OUR DEVELOPMENT — LETTER FROM THE CHAIRMAN OF THE BOARD DISCUSSION.” SUPPORTING SUPPORTING “THE BOARD BOARD “THE ROLE IN THE ROLE INTHE STRATEGY PLAYED A PLAYED A Chairman oftheBoard Denis Ranque

as shown by the progress in programmes and results. and programmes in progress the by shown as wavered, not has operations on focus Company’s smoothly. The so transition the handling for recognition deserves Company The business. of the heart very the at remain large at stakeholders and of shareholders interests the that ensure all, they Above environment. competitive moving afast in management a nimble for support best the providing on emphasis an placing – governance corporate Company’s the simplify and normalise to been has changes of these purpose 70over The percent. to grown has freefloat The effective. fully now are governance corporate and structure shareholder to the changes far-reaching year, last of March Meeting General Extraordinary the Following history. company’s the in time atransformational such at and Board distinguished a such over Chairman as to presided have privileged Ifeel and impressive, are year past of the achievements The ear Shareholders, Dear Stakeholders

LETTER FROM THE CHAIRMAN OF THE BOARD — DRIVING OUR DEVELOPMENT — ANNUAL REVIEW 2013 11

Denis RanqueDenis * 0.75 The long-term success the of Group depends will on We it. also be examining the strategic positioning the of company’s businesses, with an both eye the to present and the next cycles. production and investment long-term Further areas focus of will be the management’s delivery itsof plan, commitments the to capital markets, performance targets and evaluation, and the handling operational of risks and opportunities typical such to a complex business. Throughout all our activities, we will continue support to and promote ethical working practices. Over the long-term, good citizenship and irreproachable behaviour are an essential basis for Company performance. On this I can point, assure too, you, that we intend act in to the best interests all of our stakeholders. In Airbus 2013, Group formalised a demonstrating strong a policy dividend returns. shareholders’ to commitment growth a sustainable in This targets policy 30%-40%. of the dividend ratio within a payout DIVIDEND 2013 PER SHARE: € be proposed*To the to Annual General Meeting. information, detailed more For section Governance Corporate the to refer please in the Registration 2013. Document of a challenging business environment has been carried with the the carried with been has environment business challenging a of full support the of Board. So has too the plan adopt to the strong Airbus brand for the entire Group. Board expertise has been an important resource helping to shape and challenge management thinking on a variety of topics, such ‘DNA’ longer-term as innovation and global footprint, compliance management, risk enterprise incentivisation, executive programmes and export control regulations, as well as issues relating cyber to security. In the year ahead, the Board has an ambitious agenda. will We be closely monitoring progress in the ongoing restructuring.

role inthe discussion. Strategy The 2.0 decision integrate to Airbus Military, Astrium and Cassidian one into Defence and Space Division in order enhance to competitiveness in the face Just as importantly, the Board played significant a supporting Throughout 2013, theThroughout Board closely followed 2013, the progress of major aircraft programmes such as the A350 XWB, the A380, A400M, NH90 retrofit. and EC225 Already the Board has had numerous occasions display to its qualities both inmonitoring programme evolution and in addressing more strategic matters. at its next renewal, the Board collectively displays an impressive range relevant of skills and experience, as well as international diversity and independence. Few Boards in our industry or in any other can boast such an international line-up high-calibre of individuals. It certainly sends out a strong signal our of Group’s ambitions. global While gender representation is clearly an area be addressed to The evaluation which was carried out in the firstten monthsof the Board’s testifies tenure, to a high degreeof openness andfocus within the Board and between Board and management. Moreover, I’m pleasedI’m sayMoreover, that to the transformed governance is not only a change in our body rules, of but already a lived reality. the work the of BoardToday, Directors of is marked by a strong sense responsibility of and motivation, witnessed by the high level attendance of at Board and Committee meetings, and even more by the quality discussion of and issues addressed. to shareholders’to returns and will target sustainable growth in the dividend within a payout ratio 30%-40%. of a 25 percent increasea 25 percent over last year and a payout ratio of in40 percent, line with the new policy announced in December This new policy demonstrates2013. a strong commitment We are gladWe reflect to the improved financial performance in the proposed cent per 75 share gross dividend. It represents Sir John Parker (Chairman) Jean-Claude Trichet MittalLakshmi N. Keitel Hans-Peter REMUNERATION AND NOMINATION NOMINATION AND REMUNERATION COMMITTEE Hermann-Josef Lamberti (Chairman) Hermann-Josef Anne Lauvergeon Michel Pébereau Josep Piqué i Camps THE BOARD BOARD THE DIRECTORS OF COMMITTEE AUDIT COMMITTEES OF OF COMMITTEES 12 — THE BOARD OF DIRECTORS OF DIRECTORS 1 THE BOARD 2 3 2. 1. Hans-Peter Keitel brand management. personal software,marketingand application development,sales, fields ofcontrolling,internal experience withinIBM,inthe 2012. Hepreviouslygainedwide Deutsche BankAGfrom1998to Mr LambertiwasCOOof Board ofDeutscheBank Former MemberoftheManagement Lamberti Hermann-Josef Executive Officer. from 1992to2007asChief Business andsubsequently first asDirectorforInternational nearly 20yearsatHochtief– 2012. Priortothatheserved Industries (BDI)from2009to of theFederationGerman asPresident Mr Keitelserved of GermanIndustries(BDI) Vice President oftheFederation 4 (58)

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4. 3. International Group. Harland &Wolff andtheBabcock experience asaCEOincluding end 2011andsome25years’ chairmanship ofNationalGriduntil defence industries,includingthe engineering, shipbuildingand leadership positionsinthe Sir JohnParkerheldseveral Prior tohiscurrentposition, Chairman ofAngloAmerican Sir John Parker Northrop Grumman. businesses forEADSand defence andcommercial general managementofmajor defence industry, including international aerospaceand of executiveexperienceinthe Mr Crosbyhashadthirtyyears and ofNorthrop Grumman Management Boards ofEADS Former Memberofthe D. Crosby,Ralph Jr. 5

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THE BOARD OF DIRECTORS — 13 12

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(59) and CEO of Obrascón Huarte Lain (OHL). Having served in various political functions, i.e. Senator and Minister of successive Spanish governments, he has comprehensive political experience. Vice-Chairman and CEO of Obrascón Huarte Lain Mr Piqué i Camps is Vice-Chairman Jean-Claude Trichet Trichet Jean-Claude Honorary Governor of Banque de France Mr served Trichet as President of the European Central Bank from 2003 to He had previously been 2011. Governor of Banque de France, led the French Treasury and positions various leading held within the French Minister of Finance. and Economy Josep Piqué i Camps 11 11. 12.

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(55) 10 Chief Executive Officer of Airbus Group Prior to his current position, Mr Enders was CEO of Airbus from 2007 to 2012. He previously acted as co-CEO of EADS and led the EADS Defense and Security Systems Division, after holding various top management positions at MBB and DASA. Manfred Bischoff Manfred Chairman of the Supervisory of Daimler Board Mr Bischoff served as CEO of Daimler Benz Aerospace (DASA), as Chairman of EADS and as Member of the Management Board of Daimler AG. Educated as an economist, he has comprehensive expertise regarding the automotive industry and aerospace. Enders Tom 9. 10. 9

(72) (62) 8 Michel Pébereau of BNP Paribas Honorary President Mr Pébereau was the Chairman of BNP Paribas until the end Chairman of the Board of DirectorsChairman of the Board of Airbus Group 2009 to Denis 1998 From Ranque was Chairman and CEO of Thales, the largest European defence electronics company, where he had previously held various management positions. He started his career in the French Ministry for Industry. Since 2010 he has held various non-executive industrial in positions directorship companies and related non-profit organisations. Previously, he led BNP of 2011. bank, presiding over the merger that created BNP Paribas in 2000. He also led the Crédit after France, de Commercial ranking various high holding French withinpositions the Treasury. Denis Ranque Denis 7. 8. (54) (63) 7 Mr Mittal is an entrepreneur who founded Mittal Steel Company in 1976. The company has successfully grown over the years, is today known as ArcelorMittal, and has become largest steelmaker. the world’s is recognised for his Mr Mittal leadership in restructuring the global steel industry. Lakshmi N. MittalLakshmi N. Chairman and Chief Executive of ArcelorMittal Officer Ms Lauvergeon was CEO of Areva from 2001-2011. Under her tenure the company became and a the world nuclear leader, major renewables equipment Before joining Lazard provider. Frères and Alcatel she worked (1990-1995) for the French President Mitterrand as Deputy Chief of Staff and personal representative for G7/G8 summit preparations. Anne Lauvergeon Capital,Partner of Efficiency S.A. Chairman and CEO of A.L.P. 5. 6. — CHIEF EXECUTIVE OFFICER’S INTERVIEW

Tom Enders Chief Executive Officer

ANNUAL REVIEW DEVELOPMENT OUR — DRIVING 2013 n many ways 2013 was a pivotal year for Airbus Group. What were the most important “THERE WERE developments? Yes, it was quite some year. But for me two big developments stand out. A NUMBER OF Firstly, the overhaul to our governance and shareholding structure, which paved the way for today’s performance-driven OPERATIONAL company. It means we are fully focused on delivering continued profitable growth that benefits all our stakeholders in the coming years. I should mention here the valuable contribution of our ACHIEVEMENTS Board of Directors, which is surely second to none in terms of their experience, global mindset and financial expertise.

IN 2013.” The second major development was the Group’s new strategy. Following the in-depth review completed in 2013, we defined new strategic objectives that reflect the changing market dynamics. We clearly recognise that our core strength is in aeronautics and embrace the strong growth momentum in the commercial business. At the same time, through the creation of Airbus Defence and Space we are enhancing our competitiveness within the more constrained governmental sectors. This Division will emerge stronger as a result of the ongoing restructuring efforts, I’m convinced of that.

14 CHIEF EXECUTIVE OFFICER’S INTERVIEW — INTERVIEW OFFICER’S EXECUTIVE CHIEF

“We’ll be working to make our Company more competitive for the future.”

The Group’s renaming is a logical consequence of this strategy. What are your priorities for the year ahead? It gathers its components under the strongest brand, one that To put it simply and bluntly: 2014 is all about execution. stands for internationalisation, innovation and integration. We have a busy schedule ahead of us. Our biggest development It reinforces the message: “We Make It Fly”. I think it’s a brand programme, the A350 XWB, is now in its most critical phase. we can all wear with pride. We have to manage not only first deliveries but the industrial ramp-up for the years ahead. We have to increase A400M Which operational developments would you highlight? deliveries and in our Helicopter business, we must get the EC175 There were a number of operational achievements in 2013 which in the hands of its first customers. ultimately meant we again increased revenues and made further progress towards our 2015 profitability target. Beyond the programme milestones, we’ll be working to make Clearly, 2013 was a great year for the commercial aircraft our Company more competitive for the future. The Airbus business with record Airbus deliveries of 626 aircraft. That’s Defence and Space Division has an important role here. no mean feat. Airbus also accomplished the first flight of the Airbus Helicopters, too, is taking important steps. In addition, A350 XWB and the initial A400M deliveries were realised. a major Group-wide priority for 2014 is Quest, our quality initiative, Four Ariane 5 launches were conducted with six company-built which will help us boost performance, customer satisfaction and satellites delivered and we saw good programme execution in our bottom-line. We have to limit unplanned charges across the DRIVING OUR DEVELOPMENT defence, particularly for the Eurofighter Typhoon. In the Helicopter company going forward, whether “one-offs” or more structural. business, the EC225 Super Puma returned to service with all operators worldwide. That was a significant achievement With the new governance and structure, shareholder following recent operational issues. engagement has become a clear priority. What about other stakeholders? Order intake was particularly strong at Airbus with a record We’re a normal enterprise and we’re judged on performance by 1,619 gross commercial orders but we shouldn’t overlook the our shareholders. That’s a simple fact. But let’s face it: we can’t strong performance in the space business with a book-to-bill deliver performance without the full engagement of the many above 1. The Group order backlog reached a record € 687 billion people who drive the business every day. By that I mean, above by year end. Not many other manufacturing companies can have all, our workforce, made up of talented, passionate and highly 2013 REVIEW — ANNUAL that amount of visibility in their production planning. professional people. It’s their effort, their drive and innovation that We saw a significant improvement in profitability despite the make the Company improve and helped it achieve the many one-off charges for the A350 XWB programme and the ongoing accolades it did last year. restructuring. And, this upturn wasn’t purely down to the strong In 2013, we recognised the contribution of Airbus Group commercial aircraft activities. Despite a difficult market employees through a special offer of 10 free shares to each. environment, profitability at the defence business improved I think it’s appropriate for employees to take a share in company thanks to our transformation efforts and good programme ownership. We’re all in this enterprise together. And we all want management and we achieved a 6% return on sales for the first it to succeed. time in the space business.

GROUP PRIORITIES 2014 - KEY POINTS

Shape our Future, Stay Innovative: Combine technology Strive for further Improvement of Customer roadmaps into a Group-wide R&T Strategy. Satisfaction: Deliver products and services on quality, on time and on cost. Internationalisation: Adopt “One-Roof Principle” in key countries. Increase international reach, leverage presence. Drive our Performance: Stick to Operative Planning commitments, focus on profitability and cash management. Make Airbus Group a Success: Shape defence and space for competitiveness. Strengthen helicopter business. Manage Ethics and Compliance: Follow Integrity Principles and commercial aircraft execution challenges. speak up to improve performance and preserve reputation.

People: Support people through the Group restructuring. Cyber Security and Protection of our Assets: Invest in mastery of critical skills and behaviours for future. Protect intellectual property, industrial assets and products.

15 16 ANNUAL REVIEW 2013 — DRIVING OUR DEVELOPMENT — GROUP EXECUTIVE COMMITTEE Directors. member oftheBoard and istheonlyexecutive Group ExecutiveCommittee, Mr EnderschairstheAirbus Chief ExecutiveOfficer Airbus Group Tom Enders T. Enders T. COMMITTEE

EXECUTIVE

GROUP GROUP the Company’s shareholders. for value create and transparency financial provide opportunities, and risks to manage relations, investor manage to financing, customers’ the and Group the of funding the to secure Group, the financial performance of Airbus Mr Wilhelm’s mission is to ensure Financial Officer Airbus Group &AirbusChief Harald Wilhelm Airbus Helicopters Airbus Helicopters Guillaume Faury programmes andrelatedservices. customer satisfactionon deliver commercialsuccessand industrial performanceand to strengthenAirbusHelicopters’ an ambitioustransformationplan Mr. Faury’s missionistoimplement Chief ExecutiveOfficer H. Wilhelm G. Faury G.

development andmarketing. the Group’s international strategy andresponsiblefor the elaborationofGroup’s Mr Lahoudisresponsiblefor and MarketingOfficer Airbus Group ChiefStrategy Marwan Lahoud commercial markets. a globalleaderinits positioning thebusinessas activities andforsustainably the overallsuccessofallAirbus Mr Brégierisresponsiblefor As AirbusPresidentandCEO, Airbus ChiefExecutiveOfficer Fabrice Brégier

M. Lahoud F. Brégier B. Gerwert

the Division’s future. and Space,whilepreparing performance atAirbusDefence sustainable business restructuring anddrivinga Mr Gerwertisinchargeof Chief ExecutiveOfficer Airbus DefenceandSpace Bernhard Gerwert

GROUP EXECUTIVE COMMITTEE — COMMITTEE EXECUTIVE GROUP

F. Auque J. Botti DRIVING OUR DEVELOPMENT

T. Baril D. Ureña-Raso — ANNUAL REVIEW 2013 REVIEW — ANNUAL

J. Leahy G. Butschek S. O’Keefe

Thierry Baril François Auque Günter Butschek Jean Botti Airbus Group & Airbus Airbus Defence and Space, Airbus Chief Operating Officer Airbus Group Chief Human Resources Officer Head of Space Systems Mr Butschek is Airbus Chief Chief Technical Officer Mr Baril ensures that Airbus Mr Auque is responsible for the Operating Officer, holding Mr Botti’s mission is to steer Group’s workforce is competent, new Space Systems business line overall responsibility for Airbus Group's Research & engaged and efficiently managed within Airbus Defence and Space. operations, engineering, Technology strategy. and also anticipates future talent Space Systems is Europe’s leading procurement and supply chain He oversees IT, and initiatives needs to support business provider of space transportation, management, quality and in cyber security, quality, growth. His role is key in the orbital infrastructures and satellite information technology in programme management and areas of leadership, culture systems, and plays a crucial role in this Division. manufacturing tools for the change, and diversity. France’s deterrence capabilities. Company’s future.

John Leahy Domingo Ureña-Raso Sean O’Keefe Airbus Chief Operating Officer- Airbus Defence and Space, Airbus Group, Inc. Chief Executive Officer Customers Head of Military Aircraft Mr O’Keefe oversaw the management and operational responsibilities Mr Leahy’s responsibilities cover Mr Ureña-Raso is in charge of expanding the Airbus Group market presence in the USA, in all commercial activities of Airbus of the Military Aircraft business, coordination with the three Airbus Group operating Divisions. including sales, marketing, responsible notably for the Allan McArtor succeeded contracts, business transaction A400M, Eurofighter and UAV control, asset management, programmes. In this function, Sean O’Keefe on 1 March 2014. leasing and business development. he reports to the CEO of Airbus Defence and Space.

17 18 ANNUAL REVIEW 2013 — DRIVING OUR DEVELOPMENT — MANAGEMENT STRUCTURE *Allan McArtor succeeded Sean O’Keefe on 1 March 2014 1March on O’Keefe Sean succeeded McArtor *Allan AIRBUS GROUP AIRBUS GROUP MANAGEMENT Jean-Claude Trichet iCamps Piqué Josep Pébereau Michel Parker John Sir Lakshmi N. Mittal Anne Lauvergeon Lamberti Hermann-Josef Keitel Hans-Peter Jr D. Crosby, Ralph Manfred Bischoff (CEO) Tom Enders Denis Ranque (Chairman) ofBoard Directors STRUCTURE as of1March 2014 Tom Enders Tom Chief Executive Officer GROUP EXECUTIVE COMMITTEE MEMBERS GROUP COMMITTEE EXECUTIVE Harald Wilhelm Harald Leahy John Günter Butschek Thierry Baril Fabrice Brégier (CEO) Airbus Domingo Ureña-Raso François Auque Bernhard Gerwert (CEO) Defence and Space Airbus Guillaume Faury (CEO) Faury Guillaume Helicopters Airbus Allan McArtor *(CEO) McArtor Allan Inc. Group, Airbus DIVISIONS

MANAGEMENT STRUCTURE — DRIVING OUR DEVELOPMENT — ANNUAL REVIEW 2013 19

Chief Compliance Compliance Chief Officer Pedro Montoya DepartmentLegal KleinschmidtPeter Corporate Communications Ohler Rainer Corporate Secretary Bausset de Pierre Corporate Audit Colloc´hCorinne GROUP FUNCTIONS GROUP

Chief Financial Financial Chief Officer Harald Wilhelm Strategy Chief & Marketing Officer Marwan Lahoud Officer Botti Jean Chief Human Chief Resources Officer Baril Thierry Technical Chief

WE MAKE IT FLY ANNUAL REVIEW — 2013

Financial Overview, Strategy, Markets & Perspectives. Airbus Group is focused on delivering improved financial performance, based on commercial leadership in the aeronautics field and optimised positioning in defence and space.

20 SPOT 6 Satellite Image – Mozambique Islands. / 02 “ENHANCING GLOBAL COMPETITIVE- 2013 REVIEW FLY IT — ANNUAL MAKE WE NESS”

21 22 ANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESS — INTERVIEW WITH THE CHIEF FINANCIAL OFFICER FOCUSED ON ON FOCUSED EXECUTION.” “WE’RE “WE’RE FULLY Chief FinancialOfficer Harald Wilhelm our profitabilityour target.” “We are progress making towards

That’s after taking into account the € the into account taking after That’s € solid of 2013 end the at avery cash net remains Our quarter. last the in measures deliveries and a heightened operational focus on cash commercial of level high a ago, reflecting months some expected than However, better negative. was was it year full the flow for cash free the up. aresult, As ramping XWB A350 and A400M the with particular in programmes, development and production in investment of heavy aphase in We currently are development? cash the see you do How year’s dividend. previous the a25% on and of 40% ratio increase a payout represents share of 75 per cents dividend gross proposed The of 2013. end the at announced we policy, which dividend new our by supported profitability of improved result the is It What’s behind the proposed dividend? of 7% to 8% target 2015 by 24-25).our pages on graphs (see step towards significant another of it’s 6%. So sales on return 21% up was one-off, before to € EBIT* the profitability, year, underlying our previous the against up were 5% revenues our While target. profitability our towards progress is: making are we message important most The results? financial 2013 Group’s the of highlights main the through us talk you Can 3.6 billion. That represents a represents 3.6 That billion. 1.9 in invested billion

9 billion. 9 billion.

INTERVIEW WITH THE CHIEF FINANCIAL OFFICER — ENHANCING GLOBAL COMPETITIVENESS — ANNUAL REVIEW 2013 23

687 billion,687 is very well the years ahead. What are the main risks to profitability going forward? Risk management and costadherence are absolute priorities for the Group. And I believe our disciplined approach is paying off. perspective,From today’s one-offs should be limited possible to charges on the A350 XWB programme, which is now entering its most critical phase, and foreign exchange effects linked the to pre-delivery payment mismatch and balance sheet revaluation. go? price share the can higher much how Finally, It's certainly been an very impressive year for the share Group’s price, But rising I won’t be making 89% during any 2013. predictions! I see the rise as an indication the of high expectations the market has set for the And Company. it’s a measure the of responsibility we carry for delivering. Looking ahead, the management team and I are fully focused execution. on from the Group in the coming period? Looking the to year ahead, assuming a dollar euro 1.35, of rate you should be broadly to expect stable revenues in 2014 with Airbuscompared deliveries 2013, to at roughly the same Underlyinglevel as last year. profitability should see moderate and 7-8% we are reaffirminggrowth targetof a in 2014, our2015 return should on this sales.return note, You on sales target is and includesbased on a dollar-euro the 1.35 of rate dilutive effect earlyof A350 deliveries. In addition, the strong commercial performance at Airbus has enabled increase us to the single-aisle production 46 per to rate and our from robust level 42, today’s of ordermonth in 2016 book, which is now worth around € diversified across the globe and gives excellentus visibilityfor What sort of performance should we be expecting

469 million. 434 million charge in 2013, 434 million charge in 2013, With over 800 aircraft already the A350 on XWB order, will be a cornerstone for the Group for many years come. to We alreadyWe launched a cost convergence projectone year ago addressto the main root causes in the mid long-term to through mitigation actions, and I am convinced that the programme will be contributor a key the future to Group’s performance. of the year. But the theof year. extra effort has come at a cost, and the assessment actual of cost data points against our cost convergence targets triggered a € reflecting a higher levelrecurringof costs on the early aircraft. What do you say to the A350 one-off booked in 2013? The A350 is an extremely challenging industrial programme. But learntwe’ve a lot from previous experience. Over the past year, we have been increasing efforts ensure to a robust ramp-up and mature aircraft deliveries. Thanks those to efforts, the programme remains on track for entry-into-service by the end free cash flow before acquisitions.expect I to see an thereafter. improvement In 2014 and 2015, we need accelerate to the effort and 2015, on ourIn 2014 development programmes be and targeting we’ll breakeven the share buyback and the dividend payment € of So we maintain the financial flexibility and security we to need invest in our operations and growth. Our credit ratings further stability. financial Group’s the underpin Looking ahead, be I’ll keeping a firm eye on cash generation. 10 20 30 40 50 60 0 10 20 30 40 50 60 0 24

ANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESS2011 — KEY FINANCIAL FIGURES 12 37 49 2011 100 200 300 400 500 600 700 800 12 37 49 100 200 300 400 500 600 700 800 0 0 10 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0 2 4 6 8 10 * Pre-goodwill impairment and exceptionals. targets. 2015 its to reach track on profitability remains Group to improve.The continues sales on Group's return Airbus revenues) of apercentage as one-off before (EBIT* sales on Return IN UNDERLYINGGROWTH PROFITABILITY pressures. budgetary despite resilient remained have revenues Defence East. Middle the and Asia-Pacific from particular in momentum strong with business, commercial the by driven been has growth Revenue € bn REVENUES GROWTH CONSISTENT IN REVENUES GROWTH 10 20 30 40 50 60 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0 0 2 4 6 8 0 0 2012 Defence Commercial 12 44 56 2012 12 44 56 2011 12 37 49 100 200 300 400 500 600 700 800 2013 2011 2011 12 47 59 2013 0 2011 2011 2011 12 47 59 2011 10 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0 2 4 6 8 0 2012 10 20 30 40 50 60 12 44 56 0 FINANCIAL 2011 2013 12 37 49 2011 2011 12 47 59 100 200 300 400 500 600 700 800 2011 2012 2012 0 FIGURES 2012 2012 2012 10 2012 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0 2 4 6 8 0 2012 12 44 56 REVENUES BYREVENUES DIVISION Pro forma as per FY 2013 disclosure. FY per as forma Pro 2013 2012 2012 2011 2011 12 47 59 3.7% 2011 Airbus Helicopters Space and Defence Airbus Airbus 2012 2013 2013 22% 2013 2013 2013 KEY 2013 In this page, certain 2012 figures are pro forma, amended with IAS19 restatement and perimeter change. perimeter and IAS19 restatement with amended forma, pro are 2012 figures certain page, this In 11% 2012 2012 2013 2013 67% 5.2% 2012 2013

0.5 1.0 1.5 2.0 0.5 1.0 1.5 2.0 0 0 2011 2013 2013 2011 2013 6% 0.5 1.0 1.5 2.0 0 REVENUES BYREVENUES REGION North America Asia-Pacific Europe 15% 2012 2011 9% 2012 7% 33% 0.5 1.0 1.5 2.0 0 36% 2013 2012 2013  Middle East South America and /Central Africa 2011

2013 2012 2013 KEY FINANCIAL FIGURES — ENHANCING GLOBAL COMPETITIVENESS — ANNUAL REVIEW 2013 25

2013

1.85 2013 2013 1.85. 2013 2012 32% Africa / Central and AmericaSouth 2012 1.46 North America North  2012 23% 9% 2011 2012 2011 1.27 18% 18% 2011 1.5 billion. Based on average number1.5 billion. 0 Asia-Pacific Asia-Pacific Europe East Middle 0 2.0 1.5 1.0 0.5 EPS reported EPS Net income for the year increased by 22% to € sharesof this outstanding translates in 2013, earningsinto per share € (EPS) of REGION BY BOOK ORDER EARNINGS PER SHARE SHARE PER EARNINGS PERFORMANCE (in €) 2.0 1.5 1.0 0.5 0 2.0 1.5 1.0 0.5 2011

2013 0 47 687 640 2013 2013 2013 2.0 1.5 1.0 0.5 2013 2013 2013 40% 2013 2013 0.75* 0.75* represents 0.75* 2012 50 516 2012 566 2012 2012 2012 2012 2012 2012 2012 40% 0.60 2013 2013 2013 2011 53 59 47 12 488 2011 2011 541 2011 2013 47 59 12 2011 2011 2013 2011 59 47 12 2011 2011 35% 0.45 2013 56 44 12 2012 44 56 12 2012 0 8 6 4 2 0 0 Pay-out Ratio Pay-out 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 44 56 12 10 0 2 4 6 8

2012 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 10 Commercial Commercial Defence 0 0 2012 0 0 2 4 6 8 800 700 600 500 400 300 200 100 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 Thanks strong to commercial momentum and a highly competitive product range, the Airbus Group backlog has grown steadily over the past years. The Airbus Group backlog is well diversified across the majorregions of the globe. CONSISTENT GROWTHCONSISTENT IN BOOK ORDER ORDER BOOK ACTIVITY BY an compared increase 2012. 25% of to be proposed* To the to Annual General Meeting. — The proposed gross dividend per share € of AIRBUS GROUP DIVIDEND DIVIDEND GROUP AIRBUS Gross dividend per share (in €) € bn 10

2012 2012 12 49 37 800 700 600 500 400 300 200 100 2011 0 37 49 12

2011 800 700 600 500 400 300 200 100 37 12 49 2011

0

10 20 30 40 50 60 0

10

20 30

40 50

60 0

20 10 30

50 40 60 2011 59 47 12 2011 2011 2013 56 44 12 2012 0 8 6 4 2 0 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 10 0 800 700 600 500 400 300 200 100 12 49 37 2011 0 60 50 40 30 20 10 26 ANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESS — SHARE INFORMATION 83,5, 5 3 ,157,6 3 78 € The shares then rallied following the completion of a series of of aseries completion the following rallied then shares The *To be proposed to the Annual General Meeting. General Annual to the *To proposed be PROFILE € € share sales by the Group’s major legacy shareholders, and due due and shareholders, legacy Group’s major the by sales share GROSS DIVIDEND PER SHARE declined due to concerns about eurozone economies. NL0000235190 On 15 March 2013, the share price peaked at € at 15On 2013, peaked March price share the to the Company’s ongoing share buyback programme, reaching reaching programme, buyback share ongoing Company’s to the markets European the and Group's shares the weeks, following of end published results year full improved by supported trend, Up to mid-March 2013, the Group's shares followed an upward 2013, upward an toUp mid-March followed Group's shares the renewed worries about the eurozone economy, retreating to economy, retreating eurozone the about worries renewed ISIN CODE NUMBER OF SHARES AS OF 31 DECEMBER 2013 31 DECEMBER OF AS SHARES OF NUMBER February and the Group’s entry into the EuroStoxx50 index. index. EuroStoxx50 into the Group’s entry the and February 37.5 mid-April. in 41.12 on again declined 2013. price 2April on share The 0.75* Following a 22% progression in 2012, the Group’s share price rose 89% in 2013. in 89% rose price Group’s share 2012, the in progression a22% Following In theIn year, same the CAC 40 improved by 18%, by the DAX 25% by the 36%. and MDAX INFORMATION The MSCIThe Aerospace index was up 50%. SHARE 42.59. the Over 14 May 2013 31 2013 price and July share the saw respectively, € € The news triggered a sharp increase in the share price which which price share the in increase asharp triggered news The on figures, half-year and quarter first of strong release The once again move ahead before slipping back to € back slipping before ahead move again once 2 January 2014, the Group’s shares are listed under the Airbus Airbus 2014, the under 2 January listed are Group’s shares the Group name and symbol: AIR. symbol: and name Group of ratio apayout with policy dividend anew announced Group ON 2 JANUARY 2013 2JANUARY ON 2013 DECEMBER 27 ON On 31 December 2013, € at 31On closed December share the On 11 December, at the start of the Global Investor Forum, the the Forum, Investor Global 11 of the On start the at December, 30-40%, and confirmed its 7-8% return on sales target for 2015.for its target sales on confirmed 7-8% return and 30-40%, the prospect of reduced U.S. monetary stimulus. U.S. of reduced monetary prospect the market concerns about a possible Chinese credit crunch and and crunch credit Chinese apossible about concerns market reached an all-time high of € high all-time an reached LOW IN 2013 ON THE PARIS STOCK MARKET: MARKET: STOCK PARIS THE ON 2013 IN LOW MARKET: STOCK PARIS THE ON 2013 IN HIGH 30.07 56.24 Please refer to www.airbus-group.com Please 56.2. for information further 55.8. of As 42 to due SHARE INFORMATION — ENHANCING GLOBAL COMPETITIVENESS — ANNUAL REVIEW 2013 27 60 50 40 30 20 EADS share price in € State HoldingsState * J F M A M J J A S O N D (French State) FREE FLOAT (Spanish State) (Spanish (German State) (German SEPI GZBV SOGEPA

$/€ rate)

S  4% MSCI World Aero/Defence (in €, adjusted daily U 11% 12% CAC 40 73% 50 100 150 200 250 300 350 Base as 3 January of 100 2011 SHARE PRICE EVOLUTION EVOLUTION PRICE SHARE AS OF DECEMBER 31 2013 * Comprising: Institutional investors & Retail: and 72.6% Treasury shares (without economic or voting rights): 0.4% CAPITAL STRUCTURE CAPITAL AS OF DECEMBER 31 2013 EADS 28 ANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESS — INTERVIEW WITH THE CHIEF STRATEGY AND MARKETING OFFICER “COMMERCIAL “COMMERCIAL OUR MAJOR MAJOR OUR REMAINS REMAINS AVIATION AVIATION GROWTH GROWTH ENGINE.” Chief StrategyandMarketingOfficer Marwan Lahoud

So in order to continue generating value, we need to enhance to enhance need we value, generating to continue order in So least. at term near the in growth much to show markets space and defence domestic our expecting not are we Isaid, As businesses? space and defence Group’s the of merger the behind rationale the on elaborate you Can emerging details). customers more for 30-31 pages (see to risk low at solutions proven offer and competitiveness cost on focus can we portfolio product developed well and abroad have we Since forward. going countries domestic our in markets flat with faced are we as strengths, our on to too, focus need we businesses, space and defence our In that. We to have embrace engine. growth major our remains revenues, of our two-thirds almost for accounts today which aviation, Commercial 2.0” into account. this takes “Strategy possible. not was portfolio overall balanced amore achieving years, recent in market space and defence European growing moderately arather in growth strong However, achieving despite years. five in doubled also has Europebusiness increased has as significantly well.Our services outside sourcing and Europe, outside from coming orders and sales of our bulk the with international, more We become have anticipated. we than faster and significantly grown has Group Our made. been has of alot progress that see can we back, Looking balancing commercial and governmental businesses. on and profitability, 2007, growth, on focused mainly was in back 2020, strategy, launched Vision Group previous The the main findings? summarise you Can 2.0.” “Strategy launched and review strategy its completed Group the 2013, In

INTERVIEW WITH THE CHIEF STRATEGY AND MARKETING OFFICER — ENHANCING GLOBAL COMPETITIVENESS — ANNUAL REVIEW 2013 29

687 billion,687 is very well on the global markets in the years ahead. at a possible expanded presence in Poland. What’s the current status with the Group’s services strategy? As I mentioned our earlier, services business has progressed well in recent years. Services of today account for some 15% Airbus Group revenues the of with helicopters 42% up to business. Again, we need focus to on our strengths: our unique platform With know-how. a doubling the of Airbus fleet in the next years20 and 800 new military platforms entering service over the next five years alone, we a have unique opportunityto grow and shape a long term profitable business while adding high value our to customers on and around our products. acquisitions? potential about What Acquisitions are reach tools to our strategic goals and we have the resources act should to the opportunity present itself. major acquisitionsHowever, are not on the table in the foreseeable future. Our priority focus is to on our core strengths, enhanced deliver and programmes our execute successfully competitiveness wherever weoperate. I believe that with our strategic focus, our strong portfolio products of and our unrivalled aeronautics we can know-how, continue succeed to distributed across different regions of the world. the of regions different across distributed Are there any plans to extend the Group’s existing presence? international Increasing industrial presence can be a very effective way to improve our market share in large and growing markets, as we have seen with our facility A320 in China. Work is currently progressing on the new Final Assembly Line in Alabama, USA, which is due start to delivering family A320 aircraft in 2016. Beyond that, we are increasing our activity in Mexico, where we our for factory component high-technology a opened recently currently looking very closely And we’re business. helicopter We alsoWe had a successfulyear in the Middle East. Amongst major contracts, the large which Etihad order, includes 50 A350 XWBs, and the Emirates order for 50 A380s stand out. Important orders were also received in Saudi Arabia for our defence and security activities. In South America, as well as receiving a major single-aisle aircraft order from VivaAerobus, Mexico’s the Group won helicopter orders from Argentina, Bolivia, Brazil, Chile and Peru. joint Our ATR Uruguay. and Antigua Brazil, Colombia, in orders received venture In Europe, we booked a major single aisle contract for Turkish Airlines as well as an order for helicopters. In Central Asia and the military transport and helicopters for orders received we Caucasus aircraft and in Russia we booked an order for commercial aircraft for AIG and for a Telecommunications satellite. Thanks the success to Group’s on international markets, our order book, which now stands at around €

50 billion business of won “The newly merged Airbus Defence merged Airbus “The newly our Division will strengthen and Space as a market leader.” position a previously very difficult marketfor Airbus. Important helicopter orders were booked in South Korea, Japan and Thailand as orderswell as ATR in Indonesia, and Laos, Taiwan Thailand. The MRTT (Multi-Role Transport) Tanker contract win in mentioned. be to deserves also Singapore including major commercial aircraft orders coming from China, China, from coming orders aircraft commercial major including Air AsiaX (Malaysia), Lion Air (Indonesia), Srilankan Airlines and Singapore Airlines. The Japan Airlines A350 order XWB 31 of family aircraft clearly stands out as strategic a breakthrough in Looking back at the past year, what international international what year, past the at back Looking out? stand successes market In Asia-Pacific, including China and India, the Group achieved very good results with over € shop for secured communication through space, air and and air space, through communication secured for shop ground solutions. its segments Launchers) (Transport, and a one Tanker, stop defence and space activities, which were previously managed we haveseparately, a unique opportunity benefit to from synergies, not only in terms cost, of but also in operations and sales. Remember that since the creation EADS of in 2000, the combined revenues Cassidian, of Astrium and Airbus Military have more than doubled. Many their of activities did not even years It is ago. naturalexist 14 that business boundaries evolve in parallel. Therefore, I believe that the creation the of newly merged Airbus Defence and Space Division is now the right andstep this integration will strengthen our position as a market Theleader. Division is the European leader within its sector for “everything as well as a global that flies”, leader in many of our competitiveness, use our resources very efficiently and improve our access growth to markets. By merging our 30 ANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESS — STRATEGY Airbus Group’s strategy is to focus on Commercial Leadership, Leadership, Commercial on to focus is Group’s strategy Airbus STRATEGIC PRIORITIES FOR THEGROUP STRATEGY Following astrategy review conducted in 2013, Group Airbus has elaborated aset of strategic priorities for the Group which define       Focus on profitability, value creation, and market position – no need chaseneed to no – position market profitability, creation, on and Focus value programmes, product potential innovation within incremental Exploit markets Government and Space Defence and European in position leading Preserve leader a while remaining profitability and position market Strengthen Strengthen value chain position platforms around and on services Focus markets to move closer international and world Adapt to global amore growth at any cost; actively manage portfolio cost; at any manage actively growth Value Creation. and Optimisation Space and Defence while preparing next-generation breakthroughs next-generation preparing while in Commercial Aeronautics the way ahead for the years to come.

STRATEGY — ENHANCING GLOBAL COMPETITIVENESS — ANNUAL REVIEW 2013 31 80% 20% Commercial  Defence 2013 CIVIL REVENUES The Group is largely company. commercial a

64% Outside Europe Outside  Europe 36% OUTSIDE EUROPE OUTSIDE The bulk of the Group's revenues come2013 from Europe. outside 15% 85% Non-aeronautics Non-aeronautics Aeronautics  recognised brand and market specificities the group entire We keep our keep Helicopter businessWe division as a separate its technical due to a worldwide rename we andConsequently, rebrand EADS Group”, “Airbus We leverage the strength of the Airbus Commercial business to benefit benefit to business Commercial Airbus the of strength the leverage We consolidate the bulk ourWe of and Defence Space business one division into We build a portfolioWe strong divisions of on focus our AeronauticsWe business and (civil military) and Space       Airbus Group has seen remarkable growth over the past years. While all Divisions have expanded, the global civil aviation business has seen the biggest growth. most Airbus of Today business Group’s is related aeronautics, to comes from outside Europe and is commercial. OUR DNA WE MAKE THINGS FLY areWe first andforemost an aeronautics group. STRATEGIC IMPLICATIONS STRATEGIC 32 ANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESS — MARKETS & PERSPECTIVES The report predicts that emerging economies will continue to continue will economies emerging that predicts report The The IMF reported somewhat better near-term prospects, with with near-term prospects, better somewhat reported IMF The Advanced economies averaged 1.2% 2013 in averaged growth (1.5% economies Advanced in According to the PwC “World in 2050” report published in 2013, in published report 2050” in “World PwC to the According grow at a faster pace than advanced economies, as acatch as economies, advanced than pace afaster at grow global Gross Domestic Product (GDP) growth forecast at 3.6% at forecast in growth (GDP) Product Domestic Gross global to grow Vietnam) and Thailand Philippines, Malaysia, (Indonesia, grow at 5.1% at grow 2014, in rate of 7.3% agrowth with 5.1% China, in in exchange rate terms. terms. rate exchange 2012) 1.6% at expanding US the (2012: with 2.8%) Euro the and 2014, with the Euro area returning to moderate growth of 1.0%. growth to moderate 2014, returning area Euro the with to 2.6% grow expected is 2014. in economy States United The average 4.5% 2013, in average 4.9% growth from 2012. in down Growth 0.4% by (2012: shrinking area -0.6%). (2012: 2.9% year full aprojected at the for 3.2%). above 3% per year up to 2050, doubling in size by 2032 and 2032 by size and in to up 2050, doubling year 3% per above Solid momentum in air traffic 5.0% (2012: 6.2%). 5.0% projected to 3.8% grow (2012:projected countries 3.2%) ASEAN-5 the and purchasing power parity terms and by 2027 by and market in terms parity power purchasing the global economy is expected to grow at an average rate of just rate of just average an to at grow expected is economy global the to overtake the US as the largest economy by 2017 by economy largest in the as US the to overtake warns of risks faced by emerging markets relating to exchange to exchange relating markets emerging by faced of risks warns nearly doubling again by 2050. by again doubling nearly up process continues. According to PwC, China is projected projected is China to PwC, According continues. process up rates and financial markets. financial and rates SLOW GLOBAL ECONOMIC RECOVERY LONG-TERM ECONOMIC TRENDS in China in 2013 in China in 7.6% at estimated was (2012: 7.7%), India with In its October 2013 World Economic Outlook, the International International the 2013 Outlook, October its In Economic World Emerging market and developing economies slowed to an to an slowed economies developing and market Emerging India and 5.4% across ASEAN-5 countries. In its report, the IMF IMF the report, its In countries. 5.4% and ASEAN-5 India across Monetary Fund (IMF) reported weak global growth in 2013, in growth global weak reported (IMF) Fund Monetary Emerging market and developing economies are forecast to forecast are economies developing and market Emerging & PERSPECTIVES Due toDue budget constraints, government spending in Europe the and US As the global economy continues its slow its economy recovery, global As continues the traffic air is expanding, driven in particular by emerging markets. markets. by emerging particular in driven expanding, is

is expected to remain flat bestat in the near to mid-term. MARKETS MARKETS

Singapore Airlines A380

Air traffic growth tends to be positively correlated to GDP growth. growth. GDP to correlated positively be to tends growth traffic Air Air traffic increased 2.2% in North America (2012:America 4.0% North and 2.2%in 1.0%) increased traffic Air in measured traffic, air (IATA) global that Association reported AIR TRAFFIC CONTINUES CURRENT GROWTH PATH GROWTH CURRENT CONTINUES TRAFFIC AIR significantly higher in Asia-Pacific atAsia-Pacific in higher 7.2% (2012:significantly 6.1%)the and following a 5.3% year-on-year increase in 2012. in a5.3% year-on-yearfollowing increase revenue passenger kilometres (RPK), rose 5.2%2013, rose (RPK), in kilometres passenger revenue in Europe (2012: Europe in was 4.5%).growth traffic air Estimated In its March 2014 financial update, the International Air Transport Air Transport 2014International update, March the its In financial Middle-East at 11.9% at Middle-East (2012: 14.7%).

MARKETS & PERSPECTIVES — & PERSPECTIVES MARKETS ENHANCING GLOBAL COMPETITIVENESS

IATA expects Asia-Pacific passenger traffic to increase to 7.4% in 2014

According to the IATA March 2014 update, airlines returned PASSENGER TRAFFIC IS OUTPERFORMING an estimated net profit of US$ 12.9 billion in 2013 (2012: GDP GROWTH US$ 6.1 billion). North American carriers ended 2013 with a World real GDP and passenger traffic (year-over-year) February collective net profit of US$ 6.8 billion (2012: US$ 2.3 billion), Passenger 8% with Asia-Pacific carriers posting US$ 3.0 billion profit traffic +7. 2 % (2012: US$ 2.7 billion) and European airlines an estimated 6% US$ 1.2 billion after breaking even the previous year. — ANNUAL REVIEW 2013 REVIEW — ANNUAL According to IATA, passenger markets continue to outperform 4% the cargo business. 2% Looking to 2014, IATA forecasts a 5.8% increase in passenger traffic (RPK), with traffic up 2.7% in North America, 4.7% in 0% Europe, 7.4% in Asia-Pacific and 13.0% in the Middle East. – 2% IATA predicted further improvement in the industry’s net profit to US$ 18.7 billion in 2014, with all regions seeing increases – 4% in profitability. In 2014, airlines are expected to post net profit of 2008 2009 2010 2011 2012 2013 2014

US$ 8.6 billion in North America, US$ 3.7 billion in Asia-Pacific Real GDP Passenger traffic ASK (Available Seat Kilometres) and US$ 3.1 billion in Europe. Source: IHS Global Insight (February 2014 data), OAG (ASKs data), Airbus.

ROBUST MID-TERM OUTLOOK According to the IATA Airline Industry Forecast 2013-2017, AIR TRAVEL HAS PROVED TO BE RESILIENT published in December 2013, demand is expected to expand TO EXTERNAL SHOCKS by an average 5.4% compound annual growth rate between (in RPK* trillions) 9 /11 2013 and 2017. Attack Oil Oil Gulf Asian Financial Crisis Crisis Crisis Crisis SARS Crisis 5.5 The Airbus 2013 Global Market Forecast estimates that 5.0 passenger traffic will grow at an average yearly rate of 4.7% over 4.5 +70%** the next twenty years. In order to meet the demand for growth 4.0 and for replacement of aging aircraft, Airbus calculates a need 3.5 for more than 28,000 new passenger aircraft up to 2032. 3.0 2.5 2.0 1.5 1.0 0.5 0.0 1968 1973 1978 1983 1988 1993 1998 2003 2008 2013

World annual traffic * Revenue Passenger Kilometres. ** Since 2000 33 Source: ICAO, Airbus. 34 ANNUAL REVIEW 2013 — ENHANCING GLOBAL COMPETITIVENESS — MARKETS & PERSPECTIVES Trends in defence, space and helicopters and Trends space defence, in The need to consolidate public finances has weighed on weighed has finances public to consolidate need The Dubai Air Show 2013 Show Air Dubai According to SIPRI, military spending in the US fell 7.8% fell US the in spending real in military to SIPRI, According A McKinsey study “The Future of European Defence” points to points Defence” of European Future “The study A McKinsey According to the Stockholm International Peace Research Research Peace International Stockholm to the According government budgets, particularly in the US and Europe. Europe. and US the in particularly budgets, government ($ 98.5 billion). expenditure fell 1.9% fell to US$ terms expenditure real in spending rose by 4.7% by rose ($ Asia spending East in commit more resources to their collective defence and strait- and defence collective to their resources more commit terms to $ terms the dilemma facing European governments, with a need to aneed with governments, European facing dilemma the represents 72% NATO ofrepresents 2001. the in 63% total, from up defence IN THE US AND EUROPE AND US THE IN DEFENCE BUDGETS UNDER PRESSURE European spending fell 2.4% fell spending to $ European Middle East ($ East Middle Institute (SIPRI) in its April 2014 release, world military 2014 April military its in world (SIPRI) release, Institute jacketed finances. Europe’s increasing reliance on the US has has US the on reliance Europe’sincreasing finances. jacketed led to strains within the NATO alliance. Currently, US spending NATO spending the US Currently, within alliance. to strains led 640 billion in 2013, while Western and Central 2013, in Central billion and 640 Western while 150 billion) and by 5.3% in Eastern Europe 150 Europe 5.3% by and Eastern in billion) 312 billion. By contrast, military 312 military contrast, By billion. 282 billion), 4% by the in 1,747 2013. in billion

July 2013 by Security Defence Intelligence, North America is is America North Intelligence, Defence 2013July Security by According to the Space Foundation’s “Space Report 2013”, Report “Space Foundation’s Space to the According According to the McKinsey report, the situation in Europe is is Europe in situation the report, McKinsey to the According US$ to spend expected OUTLOOK FOR THE SPACE INDUSTRY THE FOR OUTLOOK Cybersecurity continues to grow in importance. According to the to the According importance. to in grow continues Cybersecurity systems, air-to-air refuelling, satellite cyber. and communications following Policy. astatement Defence In and Security Common the report, to the According budget. of the 40% only spending while US the as systems weapon different many as times six spending making up the rest. the up making spending commercial sector accounts for most of the growth, constituting constituting growth, of the most for accounts sector commercial and cooperation in 2012 in to € cooperation close are and of US$ record a new potential savings that could have been achieved through sharing sharing through achieved been have could that savings potential forecast period, making it by far the largest spender in the domain. domain. the in spender largest the far by it making period, forecast aircraft piloted remotely key programmes: four with forward to push promised Agency Defence European the meeting, the deploys Europe inefficiencies: structural by complicated further the global space economy grew by nearly 7% 2012, in nearly by grew economy reaching space global the report “The Global Cybersecurity Market 2013-2023” Market in published Cybersecurity Global “The report nearly three-quarters of the space economy, with government In December 2013, European Heads of State met to discuss a 2013, to met discuss of State Heads December In European 304.31 billion. The report states that the the that states report 304.31 The billion. 93.6 billion on cyber security over the the over security cyber on 93.6 billion 13 billion.

MARKETS & PERSPECTIVES — ENHANCING GLOBAL COMPETITIVENESS — ANNUAL REVIEW 2013 35 14

5 > 3-5 1- 2 Number of competitors equipment by category 9 Space Science Space Military Surveillance Navigation Meteorology 6 38% 4 4 16% 3 3 3% 7% 2 2 2 10% 8% 1 9% 9% ) (1) Commercial activities drove growth in the space sector in 2013 in sector space the in growth drove activities Commercial Commercial Communications Commercial Communications Government Remote Sensing R&D Fighter Source: Tauri Group database of spacecraft and launch activities. launch and spacecraft of database Group Tauri Source: UAV - UCAV UAV (others Missiles - all types Attack helicopters Attack Turboprop trainers Turboprop UAV - HALE/MALEUAV Special mission A/C mission Special Multirole helicopters Multirole by function (as of 2012) OPERATIONAL SATELLITES SATELLITES OPERATIONAL Light attack/jetLight trainers (1) Tactical, mini, micro, others. others. micro, mini, Tactical, (1) Source: McKinsey analysis, April 2013. FRAGMENTATION OF DEFENCE MARKETFRAGMENTATION by aircraft equipment in Europe Transport/tanker aircraftTransport/tanker

NH90

982.5 million), million), 982.5 193.1 billion over 193.1 507.9 million). 507.9 708.8 million), Launchers million), 708.8

4.3 billion). Major billion). 4.3 132.8 billion through 2022. 132.8 684.1 million) and Scientific 684.1 60.3 billion,60.3 and a military market 915.9 million (2013: € million (2013: 915.9 506.5 million (2013: € million506.5 (2013: 4.1 billion (2013: € billion (2013: 4.1 630.2 million (2013: € million630.2 (2013: 617.4 million (2013: € million (2013: 617.4 Key decisionsKey role on in Europe’s scientificexploration and Programmes with € Earth Observation with € Navigation with € European Space The Agency budget total ESA (ESA). setfor In Europe, major civil space programmes are led by the BUDGET CONSTRAINTS WEIGH WEIGH CONSTRAINTS BUDGET require 16,126 new helicopters worth US$ require 16,126 with € for 5,818 helicopters worth $ for 5,818 the next years. ten In value terms, military helicopters account for by far the largest share the of market. to mid-termto after significant increases in the previoustenyears. the future European of launchers are expected be made to programmes benefit to include from ESA the budget 2014 in Western Europe are expected remain to depressed in the near at the Ministerial ESA Council meeting in December 2014. civil area have military begun recover, to sales in the US and ON MILITARY HELICOPTER ORDERS HELICOPTER MILITARY ON 2014 amounts € to 2014 economies have weighed on helicopter sales. While sales in the Thefinancial crisis and public spending constraints in the advanced The forecast 10-year projects a civil and parapublic market for Teal Group forecastsTeal civil and military rotorcraft operators will 10,308 helicopters worth10,308 $ Review of the Divisions in 2013. Increased aircraft deliveries, strong order intake and operational focus are fuelling an improved performance.

WE MAKE IT FLY ANNUAL REVIEW — 2013

36 KEY FINANCIALS 2013 — WE MAKE IT FLY — ANNUAL REVIEW 2013 37

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OUR GOALS” “ACHIEVING 38 ANNUAL REVIEW 2013 — ACHIEVING OUR GOALS — AIRBUS GROUP ORGANISATION AIRBUS GROUP AIRBUS GROUP ORGANISATION CASSIDIAN ASTRIUM Commercial AIRBUS AIRBUS EUROCOPTER AIRBUS Military AIRBUS AS OF1JANUARY2014 AIRBUS GROUP ORGANISATION — ACHIEVING OUR GOALS — ANNUAL REVIEW 2013 39 € 397 m € 690 m € 1,595 m € 6,297 m € 14,422 m € 39,889 m

(1) Helicopters Helicopters servicesRelated Large aircraft, commercial services AircraftMilitary Systems Space Security and Intelligence Communication, Electronics      (1) 2013 results 2013 (1) restated. Revenues EBIT* Revenues EBIT* Revenues EBIT* AIRBUS DEFENCE AND SPACE HELICOPTERS AIRBUS AIRBUS activities. Eurocopter is renamed Airbus Helicopters. renamed is Eurocopter activities. Airbus Division remains responsible for all commercial aircraft aircraft commercial all for responsible remains Airbus Division been merged to form the Airbus Defence and Space Division. Division. and Space Airbus Defence the form to been merged adopted a simplified structure with three strong Divisions sharing sharing Divisions strong three with structure a simplified adopted Following the strategic review conducted in 2013, the Group has has Group the 2013, in conducted review strategic the Following the Airbus brand name. Airbus Military, Astrium and Cassidian have have and Cassidian Astrium Airbus Military, name. Airbus brand the 40 ANNUAL REVIEW 2013 — ACHIEVING OUR GOALS — AIRBUS OPERATIONAL IMPROVEMENT, for the French Air Force. Air French the for (2012: € to € increased business, Military Airbus former the including Division, of Airbus 2013,In revenues consolidated the achieving significantly improvedprofitability. beating its target for new commercial orders and while aircraft, of number arecord delivered activities) The Division (comprising commercial and military Comprising commercial andmilitaryactivitiesin2013 AIRBUS at 31 (29 in aircraft 2012),A400M two first the including stood aircraft (588 in transport 2012). of military Deliveries 2013 in aircraft 626 commercial arecord delivered Airbus 39.3 billion “THROUGH “THROUGH Airbus achievedAirbus a6.5% year-on-year increase in commercial deliveries.” (a) ), reflecting higher deliveries. deliveries. higher ), reflecting 42.0 billion

The Division’s consolidated EBIT* rose to rose € EBIT* consolidated Division’s The € to € sharply increased intake order Net 38. IAS under capitalised € total In in theperformance commercial aircraft business. the year-end (year-end 2012: year-end (year-end the € € at valued was book order consolidated Airbus’ (2012: € www. visit or here Scan 2013 June in flight maiden its made XWB A350 The operational units. units. operational of empowerment increased and processes simplified chain, supply the in investments joint by driven mainly was production Improved portfolio. product same the set-up and industrial same the utilising while deliveries commercial in year-on-year increase a6.5% achieved Airbus improvement, operational Through OPERATIONAL IMPROVEMENT of production. years eight than 88.9 billion reports.airbus-group.com 1,252 million 354 million of A350 XWB development costs were were costs development XWB of A350 million 354 (a)

), driven by strong commercial aircraft demand. demand. aircraft commercial strong by ), driven (a) ), due mainly to a solid operational operational to asolid ), mainly due 525.5 billion 202.3 (2012: billion 1,710 million (a) ), representing more more ), representing 647.4 at billion

AIRBUS — ACHIEVING OUR GOALS — ANNUAL REVIEW 2013 41 0%

+7% +23% +37% +127% Change 2012. (a) (a) (a) (a) (a) (a)

2012 1,252 2,439 445m in FY 39,273 88,909 525,482

Civil Defence Members of the A350 XWB first flight crew 2013 94% 6% 1,710 2,444 42,012 647,410 202,260 364m in FY and 2013 € (1) R&D expenses R&D Order Intake Order Book EBIT* IN % OF EXTERNAL REVENUES MILITARY AND COMMERCIAL AIRBUS € m REVENUES BY MARKET BY REVENUES Revenues (1) Capitalised(1) R&D: € figures(a) 2012 are pro forma, amended with 19 restatementIAS and perimeter change. The new 242 tonne variantThe new the of 242 which A330, offers 500 nautical miles more range and less 2% up to fuel burn than the current aircraft, is planned for firstAn additional delivery in mid-2015. regional A330 variant, optimised for high density domestic routes, is scheduled for entry-into-service in early 2015.

INCREMENTAL INNOVATION INCREMENTAL Airbus continued its strategy incremental of innovation, upgrading existing series aircraft in order maximise to customer benefit while minimising developmentAirbus risk. 2013, In delivered A320s equipped 250 with the new sharklet wing features, which have demonstrated fuel-burn savings at least of Development4%. the of A320neo remains on track for entry-into- service at the end 2015. of Line partnership in China. Preparation the of new Final Assembly Line in Mobile, Alabama, USA advanced on schedule. The Mobile site is due begin to withoperations deliveries Discussions in start 2015 to in 2016. advanced on an extension the of successful Final Assembly 42 ANNUAL REVIEW 2013 — ACHIEVING OUR GOALS — AIRBUS COMMERCIAL — A321 with Sharklets AIRBUS 2013 COMMERCIAL IN gross aircraft orders and 53% of net orders by units (2012: units by orders 53% of net and orders 41% aircraft gross of 51% share a market represents intake of total order Airbus’ 2012: 4,682 units). € € worth was backlog Airbus The (2012: 1,503orders, of cancellations net 914 net). 833 gross; 2013,In of atotal 1,619 won Airbus aircraft commercial gross pricing. improved some and volume favourable including before one-off benefittedfrom better operationalperformance, EBIT* Airbus’ programme. XWB A350 the on of costs level higher a€ includes EBIT* reported € at one-off before EBIT* of 1,253 1,162 orders, gross (2012: net 783 739 gross, net). Demand for single-aisle aircraft remained robust with a total BUOYANT SINGLE-AISLE DEMAND 42% orders). orders, of net of gross € to rose revenues The former Airbus Commercial (Airbus as of 2014) Airbus’ reported EBIT* was € was EBIT* reported Airbus’ driven by strong deliveries of series aircraft. 505.3 billion 505.3 (a) ), comprising 5,559 Airbus aircraft (year-end aircraft 5,559 Airbus ), comprising 39.9 billion (2012: € (2012: billion 39.9 2.2 (2012: billion € 434 million net charge to reflect a to reflect charge net million 434 1.6 (2012: billion € 627.1 2012: (year-end billion 37.6 billion 1.7 billion). Airbus’ 1.1 billion (a) (a) ), ), ) with ) with

AIRBUS COMMERCIAL — ACHIEVING OUR GOALS — ANNUAL REVIEW 2013 43

0%

+6% +6%

+19% +24%

+39%

+129% Change Change

(a) (a) (a) (a) (a) (a) (1) 2012 2012 1,147 588 2,428 4,682 37,624 87,283 505,333

626 2013 2013 1,595 5,559 2,438 39,889 627,113 199,867

R&D expenses R&D Order Book EBIT* AIRBUS COMMERCIAL AIRBUS € m number By aircraft of Order Intake Order Book Revenues Deliveries (EBIT* before one-off) should continue improve. to Within the challenging A350 XWB programme, management continues focus to its utmost attention on achieving certification, preparing efficientan and securingseries ramp-up production first deliveries starting in the fourth quarter 2014. of Airbus expects gross commercial aircraft orders during the year be above to the level deliveries. of and perimeter change. OUTLOOK the Airbus MilitaryAs 2014, of business is integrated within the new Airbus Defence and Space Division while Airbus page(see 44), Division remains fully focused on the commercial aircraft business. In 2014, Airbus is targeting commercial aircraft deliveries Underlyingat a similar profitability 2013. level to (1) Three(1) A330s delivered on operating lease. figures(a) 2012 are pro forma, amended with 19 restatementIAS a first testand flightthe 2013 insecond June test aircraft making its first At flightthe of inend October. the year the aircraft had achieved some 800 flight hours. The flight testprogramme and certification willrequire2,500 flighttotal testof a hours. Entry-into-service (EIS) is scheduled for the fourth quarter 2014. of The increasing effort prepare to for the industrial ramp-up and a mature EIS triggered some higher costs in 2013. net), 40 gross, 27 (2012: With gross 239 orders, in 2013 net, 230 thetotal A350 XWB orderat the end backlog2013. of stood at 812 a Memorandum Understanding of for the purchase A380s. 20 of the A380 order the backlogAt end 2013, of amounted to aircraft were 122 already182 aircraft; in service with airlines. ten The programme remains on track reach to breakeven EBIT* contribution atthe level 30 of deliveries in 2015 per year. A350 XWB MAKES INDUSTRIAL PROGRESS The A350 XWB programme made significant progress, with

A380 (Photo Contest winner) Airbus received 50 A380 orders from Emirates Airline. Additionally, Doric Lease Amedeo) (now Co. signed A380 SERIES PRODUCTION IN With production being adapted integrate to the new wing rib feet British solution, Airbus in (30 2012). delivered A380s 25 in 2013 Airways became taking a new operator, delivery its of first A380 in July 2013. A330 LAUNCHED UPGRADES The A330 continued attract to customer demand, supported by the launch new of longer range and regional variants. Airbus booked and gross 77 69 A330 net orders orders (2012: in 2013 With gross, production82 58 net). increasing per the 10 to of rate month, Airbus delivered A330 aircraft 108 a total of in 2013 The order 2 A340s). backlog stood at (2012: 103, including at the267 aircraft end 2013. of A total of 493A total single-aisle of aircraft were delivered during the The Family A320 455). order backlog amountedyear (2012: A320neo and including 2,610 at the end 4,298 2013, of to aircraft. 1,688 A320ceo Strong ongoing market demand triggered a decision increase to single-aisle aircraft production 46 aircraft to per month in 2016. Single-aisle gross orders A320neo include and 377 876 A320ceo family aircraft. Indonesia’s Notably, Lion Air placed a firm order for234aircraft, A320 comprising109 A320neos, and 60 A320ceos, becoming65 A321neos a new Airbus customer. 44 ANNUAL REVIEW 2013 — ACHIEVING OUR GOALS — AIRBUS DEFENCE AND SPACE marketing and sales, procurement, finance and HR. and finance procurement, sales, and marketing as such functions shared integrated fully by supported being while performance, bottom-line for responsibility carry which lines business four along organised is Division The 2013 the on results. € of around sales generates Space and Defence Airbus Military, Airbus plus Astrium and Cassidian enterprises. Created out of the former Divisions defence top ten global the among and worldwide business space largest second the enterprise, space and The new Division is Europe’s number one defence defence one Europe’s is number Division new The ofportfolio business assets and expertise. as of 2014, January brings together a world-leading The Airbus Defence and Space Division, operational     aerial systems. aerial including combat, transport, mission and unmanned competitive supplier towards external customers. a as acting also while lines business other Division’s the sub-systems, critical with the size necessary to support Electronics (CIS) IntelligenceCommunication, and Security businesses. Space Systems Military Aircraft public mobile radio and border security systems.public mobile radio security border and technology, including secure satellite communications, togetherbrings competences in communications represents a centre of excellence for of excellence acentre represents manages the satellite and launcher is responsible for all fixed-wing aircraft, aircraft, fixed-wing all for responsible is AIRBUS DEFENCE AIRBUS DEFENCE Military, aims to deliver enhanced competitiveness, market created of out the former Cassidian, Astrium Airbus and The Airbus Defence and Space Division, Division, Space and Defence Airbus The AND SPACE 14 based billion, presence performance. and

employees to other parts of the Group. Group. of the parts to other employees of affected redeployment and measures voluntary through mainly of positions, 5,300 areduction targeting is Division The UK. the and Spain Germany, France, targeting a substantial consolidation of sites across is Division the measures, restructuring of the part As ahead. years the in competitiveness boost will which synergies, sales and cost operational, significant to generate expected is structure Divisional new The SYNERGIES towards 10%towards beyond. of 8% 2015, in sales on a return moving targeting is Space and Defence Airbus bySupported the restructuring programme, equity. at for accounted be will participation MBDA the rules, accounting in a change to Due deliveries. A400M increasing with € above revenues to generate expects Space and Defence Airbus forward, Going OUTLOOK www. reports.airbus-group.com Scan here or visit visit or here Scan 13 billion,

AIRBUS MILITARY — 45 -2% -6% +7% -45% +78% +36% +36% Change Change

11 29 93 220 2012 2012 2,131 1,901 21,139 6 31 166 206 2013 2013 2,592 2,893 20,814

€ m number By aircraft of AIRBUS MILITARY AIRBUS Revenues Deliveries Order Book R&D expenses R&D EBIT* Order Intake Order Book OUTLOOK the former Airbus MilitaryAs 2014, of is fully integrated within the new Airbus Defence and Space Division page (see 44 for details and outlook). The first A400M was deliveredto France in 2013 a campaign replace to Indian 56 Air Force transports with the same number C295s. of At the end of 2013, 17 A330 MRTT 17 aircraft the wereAt in end service 2013, of with four countries. Six new orders were booked from Singapore, bringing aircraft. Airbus the 17 backlog to at the end 2013 of estimates a potential total export market, excluding the of US, more than tanker 100 aircraft. DELIVERIES SEGMENT LIGHT AND MEDIUM Within the medium and light segment, aircraft 22 were delivered including 20), two CN235 maritime patrol aircraft (2012: in 2013 for the US Coast Guard, three CN235 transport aircraft and aircraft. Three upgraded14 C295 Orion P-3 aircraft were handed theover to Brazilian new orders Air Force. Ten were booked, including one CN235 and nine aircraft. C295 A number export of campaigns including are under way,

20.8 billion20.8 at year-end WERE higher volumes for tankers tankers for volumes higher DRIVEN by the A400M ramp-up and A400M the ramp-up by and medium and light aircraft.” and light and medium 93 million). A total of military 31 2.1 billion)2.1 with an EBIT* of “REVENUES “REVENUES 21.1 billion). billion). 21.1 AIRBUS MILITARY IN 2013 IN MILITARY AIRBUS 2.9 billion (2012: € 166 million (2012: € The MRTT aircraft has been selected as part a preferred of bid by the Indian Air Force for potentially six tanker aircraft and final French the Additionally, way. under are negotiations contractual Ministry Defence of has announced an intention order to twelve CampaignsMRTTs. in other countries are on-going. TANKER PROGRESS TANKER seven A330 MRTT five), In aircraft 2013, were delivered (2012: including three the to United Arab Emirates. Known as the “Voyager” in the UK, the A330 MRTT began training for in-flight refuellingwith the UK Royal Air Force. The current A400M order aircraft, book comprises with 172 the to seven launch168 allocated customer nations and one four to export Malaysia. customer, Airbus estimates a market potential for approximately 400 export orders over the next 30 years. (2012: € (2012: SERVICE A400M ENTERS Following Certificate Type and Initial Operating Clearance, An initial contract was signed with OCCAR (Organisation Conjointe de Coopération en matière d’Armement) acting on behalf France, of A400M for an 18-month support services package. Discussions provide to other customers with support services progressing. are In total, 17 net orders were received (2012: 32 net orders). net orders). 32 net orders were received 17 In total, (2012: the A400M made A400Ms its entry-into-service Two in 2013. were delivered the to French Air Force and the aircraft began service Mali. in aircraft ten were theAt in the end final 2013, of assembly line and additional16 aircraft in various stages production of or assembly. with planned militaryis capability of enhancement Progressive discussions. with customer line subsequent upgrades in transport and tanker aircraft were delivered (2012: (2012: delivered aircraft were transport tanker and 29 aircraft). Airbus Military’s order book was worth € Revenues at the former Airbus Military rose to to Military Airbus rose former the at Revenues € € — 46 ANNUAL REVIEW 2013 — ACHIEVING OUR GOALS “OPERATIONAL — CASSIDIAN — (year-end 2012:(year-end € At the of 2013, € at end stood book order the at € flat remained intake order Net profitability. underlying in improvement the for of 2012 end driver the at astrong been have launched initiatives restructuring and improvement Operational profitability. and revenues to support continued programmes aircraft military while Integrated systems electronics and projects developed positively, reflected goodprogramme execution across the Division. million (2012: € € 4% by rose to Division Cassidian former the at Revenues are integrated within Airbus Defence and Space. defence environment. As of 2014, the Division’s activities performance while adapting the business to the changed The former Cassidian Division delivered an improved IMPROVEMENT 6.0 billion 2013 in (2012: € CASSIDIAN 2013 IN 128 million and restructuringand initiatives launched 15.6 billion). a strong driver for the improvement at the endof 2012 have been (a) ). The operational performance performance ). operational The 5.7 billion) with an EBIT* of € 5.7 EBIT* an with billion) in profitability.” underlying 5.0 (2012: billion € 14.3 billion 5.0 billion). 432 432

Within the Eurofighter programme, the Oman order achieved achieved order Oman the programme, Eurofighter the Within the end of 2013, the Medium Extended Air Defense System System Defense Air of 2013, end the Extended Medium the at firing test asuccessful In air-defence systems. Mistral-based and air-defence system Aster the missiles, stand-off Shadow Storm for Asia and East Middle the in secured were orders Export air-to-air missile. Meteor the for orders production placed now have Nations Partner European six all Germany, from contract production the Following missile. Milan to the asuccessor for France with signed was contract production and Adevelopment markets. export and Europe from intake order strong saw venture joint MBDA The 2013. December in The 400 The support is demonstrated by the 400 the by demonstrated is support The continued strong and delivery performance customer nations. core the from upgrades further as well as Asia and East Middle the in targeted being are Exports aircraft. fighter the board air-to-air on system Meteor of the missile integration the for contract a signed consortium Eurofighter the In addition, year. of the part of 2012 end early the at the in booked was www. visit or here Scan reports.airbus-group.com th Eurofighter Typhoon was delivered to Germany in 2013 (Photo Contest winner) Contest 2013in (Photo Germany to delivered was Typhoon Eurofighter

th Eurofighterbeing delivered

CASSIDIAN — ACHIEVING OUR GOALS — ANNUAL REVIEW 2013 47 -1% -8% +4% +6% +238% Change (a) (a) (a) (a) (a) (a) 128 234 2012 5,740 5,040 15,611 Defence Civil 248 432 2013 85% 15% 4,974 5,976 14,296 Order Book EBIT* Order Intake IN % OF EXTERNAL REVENUES CASSIDIAN € m REVENUES BY MARKET BY REVENUES R&D expenses R&D Revenues OUTLOOK the former Cassidian is fullyAs 2014, of integrated within the new Airbus Defence and Space Division page(see 44 for details and outlook). (a) 2012 figures(a) 2012 are pro forma, amended with 19 restatement.IAS Among several enhancements radar to systems, the Division introduced a new naval radar X-band for detecting small objects. Scanning Electronically Array technology, Active optimised Using the sensor will help protect ships to against terrorist attacks. Severalcontracts were signed supply to Professional Mobile Radio (PMR) technology, including a contract update to and network. Tetra shared government’s Beijing the expand

a further in step the creation a European of industrial base for cyber-security products and solutions. Portfolio and market position in the fieldof cyber security was strengthened through the acquisition stake an of in 83.9% Arkoon Network Security. Following the acquisition Netasq of in the acquisition Arkoon of 2012, Network Security represents PRODUCT AND SYSTEMS DEVELOPMENT Activities in the area Unmanned of Aerial Systems (UAS) continued. The a Spanish Atlante, designed UAS for both military and civil performed use, its maiden flight, while the signal sensor ISIS was successfully tested on the Eurohawk platform. In addition, Cassidian teamed with Dassault Aviation and MALEFinmeccanica European a proposing (Medium in Altitude, Long Endurance) solution. Further progress was made in de-risking border security contracts. (MEADS) intercepted and destroyed simultaneously two targets directions. opposite from approaching 48 ANNUAL REVIEW 2013 — ACHIEVING OUR GOALS — ASTRIUM “VOLUME AND — EBIT* increased to € increased EBIT* businesses. satellite and launcher the by particular in driven 2013 in stable broadly € at remained Division Astrium Group’s former the at Revenues ( Division Space and activities have been integrated into the Airbus Defence space Group’s the 2014, January of As demand. Astrium Division driven in by particular Ariane 5 launcher Order momentum continued at the Group’s former Order intake rose sharply to € sharply rose intake Order decreases in the governmental business. budget and competition stronger from stemming activity defence satellites and businesses, mitigated which lower service improvement reflected good inperformances the launchers, (€ 2012). € at stood book year, At the of the order end the PRODUCTIVITY PRODUCTIVITY 12.7 billion 2012). in ASTRIUM 2013 IN in launchers, defence satellites and helped to mitigate lower activity.” services 347 (2012: million € see page 44 page see 5.8 billion (2012: €5.8 billion 6.2 billion in 2013 in 6.2 billion (€ ). 311 million 5.8 billion), 3.8 billion in in 3.8 billion (a) ). The EBIT* ). EBIT* The 13.1 billion

small and medium satellites with electric propulsion systems, systems, propulsion electric with satellites medium and small of advent the including requirements, market To emerging meet to year-end. at 38 5launchers of Ariane backlog the of € impact intake order 2017, from to used be 5launchers Ariane an 18for with additional Arianespace from contract aframe included orders new Notable contract relating toservice the operating maintaining ISS. and a€ company (ISS). the ESA awarded Station Space International to the mission its completed company, successfully the by Transfer (ATV), Vehicle built Automated fourth The ever. telescope space advanced most the Gaia, including satellites, science and observation Earth (2012: nine), comprising three telecommunications and three 2013 in delivered successfully were satellites company-built Six (2012: year the during delivered six). were launchers Four successful Ariane 5 launches conducted in 2013 www. visit or here Scan and an 11 an and launches in 2013, in 57 the up launches bringing four with reliability its to demonstrate 5continued Ariane The reports.airbus-group.com th year of uninterrupted success. In all, six Ariane 5 5 Ariane all, six In success. of uninterrupted year

1 billion in 2013. This latest order brought 2013. in brought 1 billion order latest This th consecutive launch success success launch consecutive 195 million

ASTRIUM — ACHIEVING OUR GOALS — ANNUAL REVIEW 2013 49 -1% -1%

+3%

+12% +64% Change (a) (a) (a) (a) (a) (a) 311 128 2012 5,817 3,761 12,734 Defence Civil 127 347 2013 33% 67% 6,169 5,784 13,077 R&D expenses R&D EBIT* Order Book Order Intake IN % OF EXTERNAL REVENUES ASTRIUM € m REVENUES BY MARKET BY REVENUES Revenues OUTLOOK the former Astrium is fullyAs 2014, of integrated within the new Airbus Defence and Space Division page(see 44 for details and outlook). (a) 2012 figures(a) 2012 are pro forma, amended with 19 restatement.IAS With the Skynet 5 system and newly leased payload, Anik G1 Airbus Defence and Space is the only commercial company able provideto a military satellite communication constellation with coverage. global A strategic distribution partnership was signed with Inmarsat for broadband services. The new Global Xpress service is the world’s first globally available high-speed broadband service delivered via Ka-band satellite network.

344 million contract was signed 360 million combined for the development of Orders were booked for a total of 5 satellites (2012: three). three). Orders were booked 5 satellites for a total of (2012: Three telecommunication satellite contracts were signed, notably A € with and DirecTV. Telesat and Pléiades 6 entered SPOT service into 1B In March 2013, following their in-orbit validation, enabling the Division offer to high definition imagesof any point on the globe on a daily basis. In addition, the fourth UK Ministry Defence of Skynet 5 satellite, built and operated by the entered company, service. into the Ariane 5 ME and Ariane 6 launch vehicles. with the German Armed Forces for a reconnaissance radar satellite, representing another breakthrough. the company is advancing an upgraded Ariane 5 ME launcher, which will offer greater flexibility. A first launch could be carried Beyondout the as early Ariane as 2018. the 5 ME, Ariane 6 is commercial and government both of needs the meet to planned customers by offering competitive launch rates for large and the companysmall received satellites In alike. 2013, contracts from the European Space with Agency an (ESA), order intake outcome € of 50 ANNUAL REVIEW 2013 — ACHIEVING OUR GOALS — EUROCOPTER — helicopter in the HAD attack configuration for France. for configuration attack HAD the in helicopter Tiger first the and Forces Armed Belgian the for Helicopter) (NATO NFH NH90 Frigate first the included deliveries Notable of helicopters. manufacturer leading world’s the remains thus Helicopters Airbus sold, of units terms 46%. at In stood market parapublic and civil the in share market Helicopters’ 2013 on Airbus Based deliveries, 42%. remaining the for accounted Services while revenues, Division’s 58% of the represented 497 helicopters (2012: 2013 in 475 turnover helicopters). Platform € at stable revenues 2013 finished with Eurocopter) (formerly Helicopters Airbus safety and competitiveness. plantransformation focusing on customers, quality, a launch to name Airbus new the on capitalising Airbus Helicopters increased deliveries in 2013, while “PROFITABILITY “PROFITABILITY EUROCOPTER 2013 IN WAS DRIVEN of heavy platformsof services.” and heavy 6.3 billion and with deliveries rising to rising deliveries with and 6.3 billion by increased deliveries of light helicopters, strong deliveries

The Division’s EBIT* stood at € at stood EBIT* Division’s The 45%. remaining the for accounted activities 55% Military of revenues. represented activities helicopter Civil Order intake amounted to € amounted intake Order Germany. and Spain of France, outside generated was business 72% of the requirements, mission to local adaptation and markets emerging to access improved company’s the Reflecting operators. all with to service to return its led Puma/EC225 Super the for place in put measures Recovery active and services. support and platforms, of heavy deliveries strong helicopters, of light deliveries 2013 in increased by driven was performance EBIT The Airbus Helicopters’ civil and parapublic market share was 46% in 2013 in 46% was share market parapublic and civil Helicopters’ Airbus www. visit or here Scan (year-end 2012:(year-end 1,070 helicopters). 2012:(year-end € of 2013, € at end stood At the book order the variant. anaval adding while to delivered be NH90s and Tigers of number overall the reducing Government German the The Division signed a Memorandum of Understanding with Helicopters from France. Tactical Transport NH90 34 for order an was bookings the in 33. Included totalled orders family Puma orders). Super (2012: orders 422 helicopter net booked net 469 Division The reports.airbus-group.com

12.9 billion), comprising 995 helicopters 12.9 helicopters 995 billion), comprising 5.8 billion (2012:5.8 billion € 397 million (2012:397 million € 12.4 billion 5.4 billion). 309 million 309

(a) ). ). EUROCOPTER — ACHIEVING OUR GOALS — ANNUAL REVIEW 2013 51 -4% +1% +7% +3% +28%

Change (a) (a) (a) (a) (a) (a) 297 309 2012 5,392 6,264 12,942 22m in FY 2012. Civil Defence 397 306 2013 55% 45% 5,775 6,297 12,420 36m in FY and 2013 € (1) Order Book IN % OF EXTERNAL REVENUES EUROCOPTER € m REVENUES BY MARKET BY REVENUES Order Intake R&D expenses R&D EBIT* Revenues (a) 2012 figures(a) 2012 are pro forma, amended with 19 restatement.IAS OUTLOOK priorityA key will achieve be to successful in 2014 entry-into-service and the EC145 the of new EC175 EC175s helicopters.T2 15 As February of 2014, were in production, with the three launch customers scheduled receive to delivery later in the year. An upswing in order bookings for this helicopter is expected in 2014. Increased production rates will be implemented for the military NH90, helicopters Tiger and EC725 during 2014. The Division’s strategy will drive improvement initiatives related its transformation to plan, which aims at placing customer satisfaction and quality at the core operations of as well as improving industrial competitiveness, while ensuringthe highest levels aircraftof Airbus safety. Helicopters has also implemented plans reduce to costs, optimise cash and create value. (1) Capitalised(1) R&D: €

high-speed hybrid demonstrator demonstrator hybrid high-speed 3 INTERNATIONAL PRESENCE INTERNATIONAL The Division continued expand to its international presence, announcing plans for a new final assembly line in the United States anda potential full industrial setup in Poland, dependent on Poland’s strategic decision in the field of defence. marked a new milestone in the company’s innovation roadmap, with capabilities landing and vertical takeoff combining achievement the of world speed record. The optionally piloted capabilities. flight unmanned proved demonstrator EC145 A high-technology component factory was opened in Mexico, Mexico, in opened was factory component A high-technology while trainingan EC225 facility was opened in Norway. Development continued on the medium-weight new X4 helicopter, consumption, fuel reduced performance, improved offer will which and lower sound levels. The X in 2013. European Aviation Safetyin 2013. Agency (EASA) certification was received paving in January the way for the EC175 2014, entry-into-service. for INNOVATION DRIVE INNOVATION Airbus Helicopters continued its drive renew to the existing product range for future medium- growth. Both the new EC175 light T2 and upgraded twin-engine the EC145 weight helicopter twin are equipped with the new state-of-the-art Helionix avionics The system. power and performance the of EC175 validated records speed two vertical by demonstrated were Key Drivers. Group-wide support activities are reinforcing the common Company culture, fostering integration and strengthening long-term value creation.

WE MAKE IT FLY ANNUAL REVIEW — 2013

52 KEY FINANCIALS 2013 — WE MAKE IT FLY — ANNUAL REVIEW 2013 5353 / 04 OUR CULTURE” “BUILDING 54 ANNUAL REVIEW 2013 — BUILDING OUR CULTURE — ENGAGED PEOPLE ENGAGED ENGAGED PEOPLE Airbus GroupAirbus is to committed ensuring a talent pipeline drawing from all backgrounds. Trendence and Universum graduate surveys, the Group was Airbus Group is committed to diversity and inclusion, recognising recognising inclusion, and to diversity committed is Group Airbus (year-end 2012:(year-end the by 140,405). driven mainly was increase The of the workforce. French employees accounted for 37.1% for accounted employees French workforce. of the (38.5% environment, Airbus Group is committed to ensuring a talent employer for experienced professionals in Spain and number 2013. in services HR students International engineering Given strong growth perspectives in the commercial aircraft socially diverse and disabled candidates and benchmarking stereotypes, encouraging more women, internationally and continued industrial ramp-up in the commercial aircraft business. business. aircraft commercial the in ramp-up industrial continued company Randstad ranked the Group as the most attractive attractive most the as Group the ranked Randstad company and fosterand innovation in competitive an increasingly and partnering withand external partnering organisations. value and increased performance a diverse workforce can bring bring can workforce adiverse performance increased and value 144,061 at stood workforce year-end at the 2013Overall, processes, policies and training to support the diverse diverse the to support training and policies processes, and to understand teams and leaders equipping on particular to the business. The Group’s diversity strategy focuses in in focuses strategy Group’s diversity The business. to the the and available wherever talent outstanding to nurture need the the to both According backgrounds. all from drawing pipeline three in Germany. workforce, changing mindsets with regard to existing to existing regard with mindsets changing workforce, women recruited to 25% and the share of women within the senior senior the within of women to 25% share the recruited and women market and the need both to maintain strategic competences competences strategic to maintain both need the and market manager and executive community to 20%. community executive and manager ranked the most attractive employer amongst French French amongst employer attractive most the ranked DIVERSITY AND INCLUSION AND DIVERSITY in 2012),in 4,160 (4,042 while company the 2012). in left employees in 2012),in 33.4% German (32.9% 2012), in 9.2% UK (9.3% 2012) in of 2012).in share the to increase aims Group 2020, By Airbus 2012) (17.3%in 17% up made workforce women active and of the In 2013, the Group recruited 8,823 employees worldwide (11,080 worldwide 8,823 2013,In employees recruited Group the In terms of nationalities, European employees make up the bulk bulk the up make employees European of nationalities, terms In (21.4% 2013, women In were company to the 20.9% recruits of new leverage diversity in the workplace. This includes reviewing reviewing includes This workplace. the in diversity leverage of company performance. engagement as akey driver GroupAirbus sees employee

ENGAGED PEOPLE — BUILDING OUR CULTURE — ANNUAL REVIEW 2013 55 Airbus Group employees celebrate the first A350 XWB flight INTEGRITY PRACTICE IN While fostering a culture high of performance, that emphasises management top Airbus Group's it is not only results but that matter, the way they are achieved. Integrity is considered a paramount value the “Standardsin the Group. Business In of 2013, across implemented and updated were Conduct” the Group. In addition a company-wide document “Our Integrity outlining Principles”, the key Group’s integrity commitments in a simple user-friendly format was rolled out across the Group and explained by managers each to individual employee in team meetings. Airbus Group is committed to building a culture integrity of by providing employees with the right tools and role-modelling the right behaviour. Functions is carried out in a socially responsible manner. in close cooperation with social partners ensure to that the SOCIAL DIALOGUE SOCIAL new department, site or country. Additionally, the Group restructuring at Airbus Defence and Space and Corporate to each employee. employee. each to training and career more moves within the In company. 2013, employeesthan 10,000 took up the opportunity a move to to training (2012: 3.2 million 3.2 hours). training (2012: programme. Furthermore, the Group allocated ten free shares shares free ten allocated Group the Furthermore, programme. provided employees with million some a total of 3.9 hours of partners. the Group successfully In 2013, managed the relocation of Groupof the Headquarters. Group will again be working In 2014, Airbus Group actively supports employee development through Airbus Group maintains constructive relations with its social

Employee share ownership is encouraged as a further means Progress will be monitored through the forthcoming engagement engagement forthcoming the through monitored be will Progress In 2013, the average age employees of In 2013, Group-wide was best practices as well as targeting leadership development and ENGAGEMENT nationals other countries. 130 of teams improve to engagement, and promoting exchange of than 30 years old, 29.2% werethan above 50 years 30 years 29.2% old, Average old. years of service stood at 13.5 years (13.7 in 2012). years service of years (13.7 stood at 13.5 and Spanish 8.4% (8.2% in 2012). US nationals accounted for in 2012). (8.2% and Spanish 8.4% corporate policies that could have an impact on engagement. company performance. The Group is actively encouraging shares in 2013, as partshares the of employee in 2013, share ownership survey to be conducted in 2014. survey be conducted to in 2014. of strengthening engagement and commitment to the success success the to commitment and engagement strengthening of theof Some company. employees of 22% bought company Airbus Group sees employee engagement as driver a key of 43 years. Some 12.8% of the of active workforce Some43 years. 12.8% were younger 1.7% of employees (1.7% in 2012). The remaining 10.1% were The remaining 10.1% in 2012). employees of (1.7% 1.7% 56 ANNUAL REVIEW 2013 — BUILDING OUR CULTURE — ECO EFFICIENCY Airbus’ growing portfolio of next-generation aircraft is supporting supporting is aircraft of next-generation portfolio growing Airbus’ At the end of 2013, the global fleet of A380 aircraft had grown grown had of 2013,aircraft end AtA380 of the fleet global the on departure of its nearest competitor and three to four times to times four three and competitor nearest of its departure on such as sustainable aviation fuel sources and electric propulsion, propulsion, electric and sources fuel aviation sustainable as such competitor. The aircraft also generates less than half the noise noise the half than less generates also aircraft competitor. The air traffic growth, while minimising fuel costs per seat and CO and seat per costs fuel minimising while growth, traffic air aircraft fuel-efficiency, while researching on new energies, energies, new on researching while fuel-efficiency, aircraft and taking steps to cut waste and emissions within its its within emissions waste and to steps cut taking and and otherand emissions, including noise. to 122. Each A380 is 20% more fuel efficient than its nearest nearest its than to 122. efficient fuel 20% more is A380 Each NEXT-GENERATION AIRCRAFT industrial processes.industrial In 2013, Airbus Group continued its investment in improved improved in investment its 2013,In continued Group Airbus less noise on landing. landing. on noise less EFFICIENCY Airbus Group continues to invest in eco-efficient innovation to invest continues Group in eco-efficient Airbus which creates value for customers while reducing emissions. ECO ECO

2

15% less fuel than existing single-aisle aircraft and the A320 the and aircraft single-aisle 15% existing than fuel less The A350 XWB, due to enter into service in the fourth quarter quarter fourth the in to into service enter due XWB, A350 The Hybrid propulsion systems agreement with Airbus Group, Siemens and Diamond Aircraft Airbus also formed agreements to research the development development the to research agreements formed also Airbus Airbus Group is researching advanced technologies that will will that technologies advanced researching is Group Airbus Aircraft innovation has allowed fuel burn and noise reductions reductions noise and burn fuel allowed has innovation Aircraft (carbon dioxide) emissions. of 70% and 75% respectively in the last 40 years, according according years, 40 last the in of 70% 75% and respectively generation of 2014, previous its than 25% fuel burns less competitor. The A320neo, due for delivery in 2015, in delivery for consume due will A320neo, competitor. The countries such as Canada, Russia and China. and Russia Canada, as such countries cells produce electricity through the combination of hydrogen of hydrogen combination the through electricity produce cells and commercialisation of sustainable fuels for aviation in in aviation for fuels of sustainable commercialisation and allow for improved energy efficiency. and weight total the reduce waste heat and gas water,as inert aircraft operation on the ground and efficiency advantages advantages efficiency and ground the on operation aircraft and oxygen and enable emission-free and noise reduced prestigious ‘GreenTec Award’ in the aviation category. Fuel Fuel category. ‘GreenTec aviation the in prestigious Award’ the IPCC, aviation contributes around 2% of all man-made CO man-made 2% of all around contributes aviation IPCC, the 2013-2032. Forecast Market to Global According Airbus to the burn. fuel in 4%than improvements more demonstrating are operation in already sharklets family in the air. Integration and the use of fuel cell by-products such such by-products cell of fuel use the and air. the in Integration In 2013, company research into the use of fuel cells won a won cells of fuel use 2013,In into the research company lead to alternative sources of on-board power for aircraft. aircraft. for power of on-board sources to alternative lead

2

ECO EFFICIENCY — BUILDING OUR CULTURE — ANNUAL REVIEW 2013 57

2 A320neo

Rotterdam, following testing in London. in testing following Rotterdam, In November 2013, the AirbusIn November Defence and 2013, Space greenhouse initiatives included in the Climate and Energy Action Hub that measure the Earth’s magnetic field. water discharge.water was presented during the Caring for Climate Business Forum the prime contractor for four the of six Living ESA Planet missions Space is contributing a more to sustainable society through Swarm satellites was launched orbit, into from where they will at COP19 in Warsaw. This in Warsaw. new monitoringat COP19 service allows continued its blue5 initiative, which has specific goalsfor2020 spacecraft and technologies under development. The Division is is Division The development. under technologies and spacecraft service has already begun emissions mapping in Paris and CLEANER PRODUCTION effectiveness their of emission reduction policies. The new has Airbus operations. industrial of impact environmental emissions, water consumption, waste production and volatile volatile and production waste consumption, water emissions, industrial in reduction 80% an and consumption energy organic compound (VOC) emissions; a 30% reduction in governments, cities and local authorities directly to measure (from a 2006 These baseline). include 50% reductions in CO gas emissions measurement service emissions measurement gas among business was Together withTogether its customers and partners, Airbus Defence and The Group is working across Divisions reduce to the – Cryosat-2, Swarm,– Cryosat-2, Aeolus and EarthCARE. the trio of In 2013,

Airbus Group is researching advanced advanced researching is Airbus Group alternative to lead will that technologies aircraft. for power on-board of sources Improved Air Traffic Management promises (ATM) significant improvements in eco-efficiency. The Group is playing an important programmes role in ATM such as “Single European imagery is used monitor to natural resources, measure and MONITORING THE ENVIRONMENT THE MONITORING mitigate deforestation and forest degradation, and survey survey and degradation, forest and deforestation mitigate mission experience in the field of Earthof experience mission field the in observation. Through the growth mega-cities. of the SPOT, Pléiades, and TerraSAR-X constellations, satellite satellite constellations, and TerraSAR-X Pléiades, SPOT, the Sky Research” in (SESAR) ATM Europe, and NextGen in the US. and Space Division has extensive expertise and operational operational and expertise extensive has Division Space and solutions, was awarded a contract study to cost effective ways of reducing fuel consumption in the Asia-Pacific region. Asia-Pacific the fuel in reducing consumption of Airbus ProSky, which supplies performance ATM improvement As a leading satellite system specialist, the Defence Group’s SPOT 6 earth observation 6 satellite SPOT 58 ANNUAL REVIEW 2013 — BUILDING OUR CULTURE —INNOVATION INNOVATION The capacity to develop breakthrough aerospace technologies technologies aerospace breakthrough to develop capacity The € Airbus A350 XWB programme. programme. XWB A350 Airbus A lower-weight variant of the A330 was launched for regional and and regional for launched was A330 of the A lower-weight variant of early-stage research and technology was in line with the the with line in was technology and research of early-stage strategy of bringing incremental improvements to existing to existing improvements incremental of bringing strategy capitalised € capitalised applications in 2013. Recognising the company’s track record at at record track 2013. company’s in the applications Recognising a third of the Group’s R&D expenses. In 2013, In Group’s expenses. R&D of the Group a third the advancing significantly in 2013. In addition, Airbus pursued its pursued in 2013. Airbus addition, In significantly advancing Overall, the Group’s engineers filed a total of 990 priority patent patent priority 990 a of total filed Group’s engineers the Overall, domestic operations. Within Airbus Helicopters, development continued on the new new the on continued development Helicopters, Airbus Within previous year in absolute terms, accounting for close to close for accounting terms, absolute in year previous platforms. Development remained well on track on the A320neo. A320neo. the on track on well remained Development platforms. the forefront of research and technology worldwide, Thomson Thomson worldwide, technology and of research forefront the while Booz & Co placed it within the top 50. the within it placed &Co Booz while was driven mainly by the A350 XWB programme, with flight tests tests flight with programme, XWB A350 the by mainly driven was research and development (R&D) expenses were stable at at stable were (R&D) expenses development and research INTELLECTUAL PROPERTY AND TECHNOLOGY AND INTELLECTUAL PROPERTY LICENSING LICENSING is a key asset for the Group. In 2013, In Group. the for akey asset is Group’s self-financed the is also advancing. advancing. also is Reuters listed the Group among its Top its Innovators, 100 among Global Group the listed Reuters Development activity within the commercial aircraft business Development on the new X4 medium-weight helicopter helicopter X4 new medium-weight the on Development EC145T2 the and helicopter EC175 twin-engine medium-weight light twin upgrade, both of which are due to enter service in 2014. in to service enter due are of which both upgrade, twin light 3,160 (2012: million € 354 million of development costs for the the for costs of development 354 million In theIn area of new product development, the Group is focusing efforts Airbus GroupAirbus remains committedto retaining its capacity 3,142 area the in million). Investment technologies. aerospace breakthrough to generate on maximising valueon maximising of out existing platforms.

The Group launched a cyber security initiative in 2013 37,000 patents worldwide. GroupAirbus holds approximately INNOVATION — BUILDING OUR CULTURE — ANNUAL REVIEW 2013 59

IMPROVING QUALITY to enhanceto manufacturing processes and quality. A 3D imaging namedtool, MiRA (Mixed Reality Application), developed for performance and competitive advantage through quality. quality. through advantage competitive performance and adopted within space and helicopter manufacturing operations. manufacturing operations. within and helicopter space adopted fitting brackets with the aidof hand held devices, has been Airbus has successfully used MiRA since 2012. a broaderAt the level, Group has launched a major drive gain to This initiative is priority a key for 2014. The Group is also committed developing to innovative solutions from France, Germany, UK, Spain, USA, Canada, Singapore, India In 2013, a cyber securityIn 2013, initiative was launched for the entire identification of underlying technology principles to laboratory laboratory to principles technology underlying of identification intellectual property in fields such as composites, metallics, property metallics, intellectual composites, as such fields in improvements in the level protection. of A cyber security improvement plan has been implemented focusing on security and product technology, communication information industrial control system security. EARLY-STAGE RESEARCH EARLY-STAGE main landing gear which allows electrical taxiing on the ground without the main engines and provides acceleration during technical potential from readiness level one three to – i.e. take-off a speed up to 60 of km/h. together with partners unveiled a fully electric general aviation training aircraft. With two electrical engines driving shrouded propellers, the demonstrator E-Fan also features an innovative and China. Airbus Group Innovations develops the Group’s and researchers, including doctorates and interns, at facilities in communications infrastructure. communications infrastructure. studies to physically validate analytical validate physically predictions. to studies Group research and technology activities are managed by Group, which will bring a major boost in cyber awareness and CYBER SECURITY CYBER green technologies, safety and security technologies and and security technologies and safety technologies, green Amongst technology Airbus highlights Group Innovations in 2013, Airbus Group Innovations, which scientists employs over 1,000 Airbus patents Group worldwide. holds approximately 37,000 The E-Fan electric training aircraft Through its technology licensing initiative, the Group markets 60 ANNUAL REVIEW 2013 — BUILDING OUR CULTURE — SUPPLY CHAIN / PROGRAMME MANAGEMENT 14%, production material for 10% and product related services services related 14%, 10% for product and material production The external supply chain represents a major share of the value value of the share amajor represents chain supply external The € First A350 XWB nose section unloaded from a Beluga aircraft aBeluga from unloaded section nose XWB A350 First of Airbus Group products. For 2013, the ratio of external sourcing 2013, sourcing For products. of external Group ratio the of Airbus comprises payments to tier one suppliers based on invoices invoices on based suppliers one to tier payments comprises aircraft business. Aircraft propulsion systems business.aircraft Aircraft accounted previous year at approximately 70%. Sourcing turnover turnover 70%. Sourcing approximately at year previous for 30%, structure & airframe for 15%, for for &equipment systems &airframe structure 30%, for to some amounted turnover sourcing Group’s external the for goods and services, including fees. turnover to Group revenues is expected to be in line with the the with line to in be expected is revenues to Group turnover was mainly due to the production ramp-up in the commercial commercial the in ramp-up production to the due mainly was In 2012, the latest year for which consolidated data is available, available, is data 2012,In consolidated which for year latest the 39.5 billion. The increase of roughly 12% on the previous year year 12% previous of roughly the on increase 39.5 The billion. MANAGEMENT PROGRAMME which makes avital contribution to the success of the business. SUPPLY Airbus Group closely manages its supply chain, chain, supply its manages closely Group Airbus CHAIN/

26% of the Group’s external spend. Group’s26% external of the 2011); 1% and currencies. other sterling in in booked 6% was strategic goal for the Group, as a means of reducing exchange exchange of reducing ameans as Group, the for goal strategic attributable to sold products and services, accounted accounted services, and products to sold attributable turnover, representing 71%turnover, representing represented 2012. in America North turnover. sourcing 23%for of external material, turnover. Indirect sourcing 8%for of external rate risk. Some 49% of external sourcing turnover in 2012 in turnover was sourcing 49% of external Some rate risk. directly not are which services and goods representing booked in US dollars (47% dollars US in 2011), in booked (46% 44% euros in in with Increasing the share of procurement in US dollars remains a remains dollars US in of procurement share the Increasing Europe continued to account for the major share of external of external share major the for to account continued Europe

SUPPLY CHAIN / PROGRAMME MANAGEMENT — BUILDING OUR CULTURE — ANNUAL REVIEW 2013 61 PROGRAMME MANAGEMENT MANAGEMENT PROGRAMME Professional programme management is driver a key recent In performance. operational Group’s Airbus of years, the Group has established a Programme to setup improvement continuous Management define and deploy state-of-the-art policies to and necessary the competencies. maintain and up build As part the of cultural change, Programme Management has been established as a core discipline with a defined career path. Advances seen in a number Group key of programmes illustrate the progress achieved. In order maximise to effectiveness, the Group is looking promote to right policies management programme professional chain. supply the into through

Increasing the share of of the share Increasing dollars US in procurement goal a strategic remains Group. the for 39.9 billion, a slight39.9 increase on the previous year. Key Performance Indicators (KPIs). Indicators Performance Key North America and South America. Development the of private Europe, as a means gaining of access growth to markets and In 2012, the company ordered goodsIn 2012, and services valued In 2013 a compliance riskIn 2013 assessment the of Supply Chain was boards continued exchange to best practices, monitor supplier in order anticipate to and mitigate potential issues, particularly in in emerging countries. emerging in increasing natural currency hedging. currency natural hedging. increasing in in sterling other currencies. and 1% PROCUREMENT ACADEMY PROCUREMENT MANAGING SUPPLIER RISK AND QUALITY AND RISK SUPPLIER MANAGING relation ongoing to production ramp-ups and the challenging measures, the Academy will introduce a set centralised of with suppliers (rather than invoiced amounts) and are based US dollar contracts accounted the of total volume for 54% training solutions, covering the complete supply chain perimeter. the whole Airbus Group in order harmonise to procurement job performed aimed at mapping risks associated with the procurement procurement the with associated risks mapping performed at aimed process, taking account into a variety topics of such as geopolitical performance and meet common suppliers. suppliers. common meet performance and profiles, competences and skills across the group. As key its Order volumes comprise the overall value contracts of signed at some € and an implementation further of procurement compliance aerospace sector has supported has supply chain activity increasing sector aerospace assigned broader roles with responsibilities for developing developing for with responsibilities roles assigned broader commodities and procurement process compliance. compliance. process procurement and commodities situation, sensitive countries, corruption sensitive countries, sensitive tax risk, situation, havens, series production the of A350 XWB. Group-wide procurement supply chain activities respectively in the Middle East, East Asia, Country sourcing offices in India, China, the US and Brazil were GLOBAL SOURCING GLOBAL on purchase orders. purchase on while newlyof 39% was placed in euros, 6% orders in 2012, The Airbus “Procurement Academy” to was extended in 2013 This assessment led a strengthened to procurement process The Group takes a proactive approach towards the supply chain The Group continued develop to the supply chain beyond 62 ANNUAL REVIEW 2013 — WE MAKE IT FLY — SHAREHOLDER INFORMATION INVESTOR RELATIONS CONTACT DETAILS 2014 November 14 NINE-MONTH 2014 RESULTS RELEASE 2014 July 30 2014 RESULTS RELEASE YEAR HALF 2014,3 July Germany Munich, 2014,1 July France Paris, INFORMATION MEETINGS PRIVATE SHAREHOLDER NetherlandsThe 27 May 2014, Amsterdam, ANNUAL MEETING GENERAL 13 May 2014 RELEASE 2014 RESULTS QUARTER FIRST 201426 February RESULTS RELEASE 2013 YEAR FULL FINANCIAL CALENDAR Spain: Germany: France: T oll-free telephone numbers SHAREHOLDER SHAREHOLDER 00 800 00 02 2002 00 800 00 02 2002 00 800 00 010 800 2001 INFORMATION

www.airbus-group.com I Spanish. and German French, English, in available is aero-notes newsletter shareholder the financial releases,Annual General Meeting documentsand documentation, including the Group Annual Report, quarterly and information of Company range A comprehensive UK. the and Spain Germany, France, in visits site dedicated and meetings 20 information than more in shareholders individual met team the addition, In website. Company the on live broadcast was analysts, and investors 160 than institutional more by attended and annual Global Investor Forum, held in London in December 2013 Group’s The float. 70% free some of the comprising worldwide, investors institutional with 2013,In organised were meetings 860 results. financial and strategy, operations Group’s the about informed fully players market financial other and investors to keep aims team Communications Financial and Relations Investor Group Airbus The iPad Application E- nternational mail : [email protected] N umber Airbus Group Investors Group : Airbus : + 33 800 01+ 33800 2001

PHOTO CONTEST — WE MAKE IT FLY — ANNUAL REVIEW 2013 63

by Robert Oram (PAGE 46) (PAGE EUROFIGHTER N°3.

Taken on 20 July 2013 in Fairford, UK on July 20 2013 Taken

PHOTO invited aviation enthusiasts participate aviation to ininvited CONTEST

The winners are Ramon Jordi, Christian Böhme and Böhme Robert Christian Oram. Jordi, Ramon The are winners the “Through Your Eyes” Photo Contest Photo Eyes” the and show “Through their Your talents. Over a two month period January ending 15 Airbus 2014, Group The 3 winning photographs have been published in the Annual Report. Annual the Report. in been published have photographs The 3 winning by Ramon Jordi N°1. A400MN°1. (PAGE 07) in April 2013 on11 Taken France Blagnac, Toulouse by Christian Böhme Christian by N°2. A380 (PAGE 42) Taken on 29 September 2013 in Dresden, Germany on September 29 Taken 2013 ADDRESSES

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The complete AIRBUS GROUP 2013 Annual Report package consists of:

Annual Review 2013 Registration Document 2013 “WE MAKE IT FLY” Financial Statements

AIRBUS GROUP would like to thank all those who contributed to the making of this Annual Report.

Please also refer to the accompanying AIRBUS GROUP Corporate Responsibility and Sustainability Report 2013

Designed and produced by – Written by The Clerkenwell Consultancy – Printed by Chirat.

Annual review – Photographs © Airbus, © Airbus/ A. Doumenjou, © Airbus Group, © Airbus Group/Bilfinger/Dannenberg © Airbus Group/CAPA pictures, © Airbus Group/Nicolas Gouhier, © Airbus Group/LCL Production – Sylvain Pascaud, © Airbus Group/Sven Marquardt, © Airbus Helicopters, © Ramon Jordi, © Airbus Defence and Space, © Airbus Defence and Space/Astrium, Astrium SAS, © Airbus Defence and Space/Dannenberg, © Airbus Military, © Airbus China, © Airbus Group Inc., © Astrium, © EADS/C. Guibbaud 2010, © Christian Böhme, © Robert Oram, © ESA, © ESA-CNES-ARIANESPACE/Optique Vidéo du CSG, © Eurofighter GmbH/Andreas Zeitler, © Getty Images/themosse, Marc Volk, Westend61, X.

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