Information Document 2018 Information Document Airbus SE is a European public company (Societas Europaea), “intend”, “plan”, “project”, “predict”, “will”, “should”, “may” or with its seat in Amsterdam, The Netherlands, which is listed in other variations of such terms, or by discussion of strategy. France, Germany and Spain. These statements relate to the Company’s future prospects, developments and business strategies and are based on As a result of the relabelling to a single Airbus brand, Airbus SE analyses or forecasts of future results and estimates of amounts together with its subsidiaries is referred to as “the Company” not yet determinable. These forward-looking statements and no longer the Group. T he segment formerly known represent the view of the Company only as of the dates as “Airbus Commercial Aircraft” is referred to as “Airbus”. they are made, and the Company disclaims any obligation See “— Management’s Discussion and Analysis of Financial to update forward-looking statements, except as may be Condition and Results of Operations — 2.1.1.2 Reportable otherwise required by law. The forward-looking statements in Business Segments”. this Information Document involve known and unknown risks, uncertainties and other factors that could cause the Company’s In addition to historical information, this Information Document actual future results, performance and achievements to differ includes forward-looking statements. The forward-looking materially from those forecasted or suggested herein. These statements are generally identifi ed by the use of forward-looking include changes in general economic and business conditions, words, such as “anticipate”, “believe”, “estimate”, “expect”, as well as the factors described under “Risk Factors” below. 02 Airbus / Information Document 2018 Risk Factors 1 Information on the Company’s Activities 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations 3 General Description of the Company and its Share Capital 4 Corporate Governance 5 Entity Responsible for the Information Document Airbus / Information Document 2018 03 Contents Risk Factors 07 Information Document 1. Financial Market Risks 08 2018 2. Business-Related Risks 11 3. Legal Risks 18 4. Environmental, Health and Safety Risks 20 1 Information on the Company’s Activities 23 1.1 Presentation of the Company 24 1.1.1 Overview 24 1.1.2 Airbus (Commercial Aircraft) 28 1.1.3 Helicopters 36 1.1.4 Defence and Space 39 1.1.5 Investments 45 1.1.6 Insurance 46 1.1.7 Legal and Arbitration Proceedings 46 1.1.8 Non-Financial Information 48 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations 71 2.1 Operating and Financial Review 72 2.1.1 Overview 73 2.1.2 Signifi cant Accounting Considerations, Policies and Estimates 76 2.1.3 Performance Measures 77 2.1.4 Results of Operations 81 2.1.5 Changes in Total Equity (Including Non-Controlling Interests) 85 2.1.6 Liquidity and Capital Resources 86 2.1.7 Hedging Activities 89 2.2 Statutory Auditor Fees 90 2.3 Information Regarding the Statutory Auditor 90 04 Airbus / Information Document 2018 INFORMATION DOCUMENT 2018 3 4 General Description of the Company Corporate and its Share Capital 93 Governance 115 3.1 General Description of the Company 94 4.1 Management and Control 116 3.1.1 Commercial and Corporate Names, 4.1.1 Corporate Governance Arrangements 116 Seat and Registered Offi ce 94 4.1.2 Dutch Corporate Governance Code, 3.1.2 Legal Form 94 “Comply or Explain” 134 3.1.3 Governing Laws and Disclosures 94 4.1.3 Enterprise Risk Management System 135 3.1.4 Date of Incorporation and Duration of the Company 95 4.1.4 Internal Audit 137 3.1.5 Objects of the Company 96 4.2 Interests of Directors and Principal 3.1.6 Commercial and Companies Registry 96 3.1.7 Inspection of Corporate Documents 96 Executive Offi cers 138 3.1.8 Financial Year 96 4.2.1 Remuneration Policy 138 3.1.9 Allocation and Distribution of Income 96 4.2.2 Long-Term Incentives Granted to the Chief Executive Offi cer 150 3.1.10 General Meetings 97 4.2.3 Related Party Transactions 151 3.1.11 Disclosure of Holdings 98 3.1.12 Mandatory Disposal 99 4.3 Employee Profi t Sharing and Incentive Plans 151 3.1.13 Mandatory Offers 100 4.3.1 Employee Profi t Sharing and Incentive Agreements 151 4.3.2 Employee Share Ownership Plans 151 3.2 General Description of the Share Capital 101 4.3.3 Long-Term Incentive Plans 153 3.2.1 Issued Share Capital 101 3.2.2 Authorised Share Capital 101 3.2.3 Modifi cation of Share Capital or Rights Attached to the Shares 101 3.2.4 Securities Granting Access 5 to the Company’s Share Capital 102 Entity Responsible 3.2.5 Changes in the Issued Share Capital 103 for the Information Document 159 3.3 Shareholdings and Voting Rights 104 5.1 Entity Responsible 3.3.1 Shareholding Structure at the End of 2018 104 for the Information Document 160 3.3.2 Relationships with Principal Shareholders 105 3.3.3 Form of Shares 107 5.2 Statement of the Entity Responsible for the Information Document 160 3.3.4 Changes in the Shareholding of the Company 108 5.3 Information Policy 161 3.3.5 Persons Exercising Control over the Company 108 3.3.6 Simplifi ed Group Structure Chart 108 5.4 Undertakings of the Company regarding Information 161 3.3.7 Purchase by the Company of its Own Shares 110 5.5 Signifi cant Changes 161 3.4 Dividends 112 3.4.1 Dividends and Cash Distributions Paid 112 3.4.2 Dividend Policy of the Company 112 3.4.3 Unclaimed Dividends 112 3.4.4 Taxation 112 Airbus / Information Document 2018 05 Risk Factors 06 Airbus / Information Document 2018 Risk Factors 1. Financial Market Risks 08 2. Business-Related Risks 11 3. Legal Risks 18 4. Environmental, Health and Safety Risks 20 Airbus / Information Document 2018 07 Risk Factors / 1 Financial Market Risks The Company is subject to many risks and uncertainties that may affect its fi nancial performance. The business, results of operations or fi nancial condition of the Company could be materially adversely affected by the risks described below. These are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently considers immaterial may also impair its business and operations. 1. Financial Market Risks Global Economic Concerns As a global company, the Company’s operations and performance Although the impact of these geopolitical events cannot depend signifi cantly on market and economic conditions in reasonably be assessed, the consequences could have a Europe, the US, Asia and the rest of the world. Market disruptions negative effect on the Company’s fi nancial condition and results and signifi cant economic downturns may develop quickly due to, of operations. among other things, crises affecting credit or liquidity markets, If economic conditions were to deteriorate, or if more pronounced regional or global recessions, sharp fl uctuations in commodity market disruptions were to occur, there could be a new or prices (including oil), currency exchange rates or interest rates, incremental tightening in the credit markets, low liquidity, and inflation or deflation, sovereign debt and bank debt rating extreme volatility in credit, currency, commodity and equity downgrades, restructurings or defaults, or adverse geopolitical markets. This could have a number of effects on the Company’s events (including the impact of Brexit, discussed below, US policy business, including: and elections in Europe). Any such disruption or downturn could affect the Company’s activities for short or extended periods and - requests by customers to postpone or cancel existing orders have a negative effect on the Company’s fi nancial condition and for aircraft (including helicopters) or decisions by customers to results of operations. review their order intake strategy due to, among other things, lack of adequate credit supply from the market to fi nance On 29 March 2017, the UK triggered Article 50 of the Lisbon aircraft purchases or change in operating costs or weak levels Treaty, the mechanism to leave the European Union (“Brexit”), of passenger demand for air travel and cargo activity more before having achieved a roadmap for the complex negotiations. generally; The negotiation period ends on 29 March 2019 and if no - an increase in the amount of sales fi nancing that the Company agreement is ratifi ed by this time, the UK leaves the European must provide to its customers to support aircraft purchases, Union with effect from this date and is considered as a third thereby increasing its exposure to the risk of customer defaults country without a privileged relationship with the European despite any security interests the Company might have in the Union. Although the terms of the UK’s post-Brexit relationship underlying aircraft; with the EU are still unknown, the Company, its operations and - variations in public spending for defence, homeland security supply chain may be disrupted by this uncertainty and may be and space activities; affected by potentially divergent national laws and regulations - fi nancial instability, inability to obtain credit or insolvency on the between the EU and the UK. This will in particular include but part of key suppliers and subcontractors, thereby impacting not limited to: the Company’s ability to meet its customer obligations in a - greater restrictions on the import and export of goods and satisfactory and timely manner; services between the UK and EU countries in which the - continued de-leveraging as well as mergers, rating Company operates along with increased regulatory and legal downgrades and bankruptcies of banks or other fi nancial complexities; institutions, resulting in a smaller universe of counterparties - changes in customs regime between the UK and the European and lower availability of credit, which may in turn reduce the Union, which could result in signifi cant changes at borders availability of bank guarantees needed by the Company for its and customs controls.