As the basis for its 2017 guidance, Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions.

Airbus 2017 earnings and FCF guidance is based on a constant perimeter:

2017 Guidance

• Airbus expects to deliver more than 700 commercial aircraft which depends on engine manufacturers meeting commitments
• Before M&A, Airbus expects mid-single-digit % growth in EBIT Adjusted and EPS Adjusted compared to 2016
  
• Free Cash Flow is expected to be similar to 2016 before M&A and Customer Financing

The perimeter change in Defence and Space is expected to reduce EBIT Adjusted and Free Cash Flow before M&A and Customer Financing by around € 150 million and EPS Adjusted by around € 14 cents

2016 Guidance

• Airbus expects to deliver more than 650 aircraft and the commercial order book is expected to grow.
• Before M&A, Airbus Group expects stable EBIT* before one-off and EPS* before one-off compared to 2015.
  
• Before M&A and Customer Financing, Airbus Group expects to deliver stable Free Cash Flow compared to 2015.
  

The perimeter change in Airbus Defence & Space implemented at H1 2016 is expected to reduce EBIT* before one-off and Free Cash Flow before M&A by around € 200 million and EPS* before one-off by around 20 cents.

* Pre-goodwill impairment and exceptionals

FY 2015 Target

• As the basis for its 2015 guidance, Airbus Group expects the world economy and air traffic to grow in line with prevailing independent forecasts and assumes no major disruptions
• Airbus deliveries should be slightly higher than in 2014, and the commercial aircraft order book is expected to grow
  
• In 2015, before M&A, Airbus Group expects an increase in revenues and targets a slight increase in EBIT before one-off
  
• Based on our current view of the industrial ramp up, Airbus Group targets breakeven Free Cash Flow in 2015 before M&A
  
• Airbus Group targets its EPS and DPS to increase further in 2015

Based on the 9m 2013 results, EADS reaffirms its full year guidance for all KPIs except the order intake and deliveries at Airbus Commercial which have been increased further.
The expected free cash flow is updated as well, with a negative level of 1.5 billion € (at EURUSD =1.35)

As the basis for EADS 2013 guidance, EADS expects the world economy and air traffic to grow in line with prevailing independent forecasts and assumes no major disruptions.

In 2013, gross commercial aircraft orders should be above 1,200 aircraft.
Airbus deliveries should continue to grow up to 620 commercial aircraft

Due to lower A380 deliveries assuming an exchange rate of €1:$1,35, EADS revenues should see moderate growth in 2013.

By stretching the 2012 underlying margin improvement, in 2013 EADS targets and EBIT before one off of 3.5 billion euros and an EPS before one off of around €2,50 [FY 2012 €2,24], prior to the share buyback.

A350 XWB remains challenging. Any schedule change could lead to an increasingly higher impact on provisions.

An assessment of the need for potential one-off costs from the creation of Airbus Defence and Space will need to be conducted in the last quarter of 2013.

EADS aims a  Free Cash Flow of (1.5) Billion euros after customer financing and before acquisitions.

* Airbus Group uses EBIT pre goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to such items as depreciation expenses of fair value adjustments relating to the EADS merger, the Airbus Combination and the formation of MBDA, as well as impairment charges thereon.

As the basis for EADS’ 2012 guidance, EADS expects the world economy and air traffic to grow in line with prevailing independent forecasts and assumes no major disruption due to the current euro crisis.

As EADS’ nine-month results confirm its growth and improvement trend, the Group reaffirms with increased confidence its 2012 earnings guidance.

In 2012, Airbus should deliver around 580 commercial aircraft, including 30 targeted A380 deliveries.

Gross orders should be above the number of deliveries, in the range of 600 to 650 aircraft.

Based on an assumption of € 1 = $ 1.30, EADS 2012 revenues should grow in excess of 10 percent.

Based on the Group’s solid underlying operating performance, EADS expects 2012 Group EBIT* before one-off to be around € 2.7 billion.

As a result and with an expected tax rate for the full year of slightly below 30 percent, the EADS 2012 EPS* before one-off(4) should be around € 1.95 (FY 2011: € 1.39).

Going forward, the reported EBIT* and EPS* performance of EADS will be dependent on the Group’s ability to execute on its complex programmes such as military helicopters, A400M, A380 and A350 XWB, in line with the commitments made to customers. Reported EBIT* and EPS* also depend on exchange rate fluctuations.

Based on the targeted 30 A380 deliveries and assuming no change in government payment behaviour, EADS aims to be Free Cash Flow break-even after customer financing and before acquisitions.

* EADS uses EBIT pre goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to such items as depreciation expenses of fair value adjustments relating to the EADS merger, the Airbus Combination and the formation of MBDA, as well as impairment charges thereon.

EADS increases its latest orders, revenues, EBIT* before one-off and Free Cash Flow guidance given in July. In 2011, Airbus should deliver 520 to 530 commercial aircraft and its gross orders should be around 1,500.

EADS 2011 revenues should increase by more than 4 percent compared to € 45.8 billion in 2010.

EADS now expects 2011 EADS EBIT* before one-off to increase compared to the 2010 level, at around € 1.45 billion thanks to better than expected underlying commercial performance.

EADS expects 2011 Earnings per Share (EPS) before one-off to be around € 0.9, above the 2010 level (€ 0.86). Going forward, reported EBIT* and EPS performance of EADS will be dependent on the Group’s ability to execute on the A400M, A380 and A350 XWB programmes, in line with the commitments made to its customers.

Reported EBIT* and EPS also depend on exchange rate fluctuations. As previously communicated, at € 1 = $ 1.35, the 2011 EPS should be above the 2010 level of € 0.68 and at € 1 = $ 1.45, it may be below.

Free Cash Flow before investment for acquisitions is now expected to be significantly above € 1 billion.

Latest reviews confirm that in 2012, the Group expects a significant improvement in its EBIT* before one-off thanks to higher volume, better pricing and improvement of A380 performance at Airbus.

* EADS uses EBIT pre goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to such items as depreciation expenses of fair value adjustments relating to the EADS merger, the Airbus Combination and the formation of MBDA, as well as impairment charges thereon.

In 2010, Airbus gross orders should be up to 500 thanks to the commercial aircraft upturn and Airbus deliveries should be slightly more than 500.

EADS’ guidance is based on an assumption of €1 = $1.35 for the Q4 2010 average rate and year-end closing spot rate.

EADS revenues should be more than € 44 billion.

At slightly more than 500 deliveries, EADS confirms its EBIT* before one-off guidance at around € 1.2 billion.

Going forward the EBIT* performance of EADS will be dependent on the Group’s ability to execute on the A400M, A380 and A350XWB programmes, in line with the commitments made to its customers.

Using the above exchange rate assumptions, EADS increases its EBIT* guidance to at least € 1.1 billion.

EADS is also increasing its Free Cash Flow guidance. Provided a sustainable year-end cash inflow of institutional and government business, the Free Cash Flow before customer financing should be around € 1 billion and Free Cash Flow after customer financing should be above € 800 million compared to the previously expected free cash outflow of around € -600 million.

* EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to income or expenses of a non-recurring nature, such as amortization expenses of fair value adjustments relating to the EADS merger, the formation of Airbus S.A.S. and the formation of MBDA, and impairment charge.

As in many industries, the macro-economic environment, which includes the recent oil price increases, has impacted the financials of EADS’ commercial customers. The deterioration creates a risk on the commercial delivery outlook. Nevertheless, the Group is cautiously envisaging an improvement of the economic and market conditions in the next months.

Looking ahead to 2010, the Group is still cautiously monitoring its production rates in a soft market environment. Delivery of Power8 savings, a better aircraft pricing level and further progress in space and defence will be challenged by deterioration of hedge rates and uncertainties surrounding the A380 and if unresolved in 2009 the A400M.

October 2009 figures further confirm the bottoming out of the cycle for freight and passenger traffic, notably in emerging economies. Worldwide passenger traffic has increased for the first time since November 2008.

From an economic standpoint, the continuous weakening of the dollar – although not an immediate threat in the short term thanks to the Group’s long-term hedging policy and cost-cutting initiatives – is challenging EADS’ performance because of a weakening hedge book over time. The long-term dollar level is an important driver for EADS’ earnings power over the coming years.

In a challenging market, EADS maintains its estimate for a new gross orders figure of up to 300 aircraft in 2009. Production rates remain stable. 2009 deliveries are expected to be around 490 aircraft. For 2010, EADS is still working with its customers to establish a total delivery outlook including the A380 programme. Using €1 = $1.39 (used in the previous guidance) as the average spot rate, EADS 2009 revenues should be roughly in line with the 2008 level. However, further deterioration of exchange rates in the fourth quarter could lead to slightly lower Group revenues.

Due to ongoing uncertainties on the magnitude of the potential A400M and A380 charges in the fourth quarter, EADS is not able to give a guidance for EBIT* for the full year. Under a continuation scenario, which is deemed the most probable, the A400M provision for which €2.4 billion in charges have already been accrued has a wide range of possible outcomes depending on the negotiation process and could substantially alter the financial statements of EADS in the future.

EBIT* before one-off for full-year 2009 should amount to around €2 billion. In a difficult environment, the Group’s Cash Flow management continues to deliver better results than expected with a cash-flow consumption now expected to be less than €1 billion (excluding A400M) including lower customer financing needs than anticipated.

* EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to income or expenses of a non-recurring nature, such as amortization expenses of fair value adjustments relating to the EADS merger, the formation of Airbus S.A.S. and the formation of MBDA, and impairment charges.

The EADS guidance is based on a closing spot rate at year-end 2008 of € 1 = US$ 1.45.

EADS expects Airbus to capture orders for more than 850 new aircraft in 2008.

Forecasted EADS revenues growth to more than € 40 billion in 2008 is unchanged, with over 470 aircraft deliveries for the full year.

With an EBIT* of € 2.0 billion in the first nine months of 2008, EADS should exceed its full-year EBIT* guidance of € 1.8 billion (at € 1 = US$ 1.45) based on the strong underlying performance. This excludes any additional impact for the A400M, due to the uncertainties of the programme.

The variation of the closing €/US$ spot rate at year-end relative to that of end of September 2008 could have negative or positive impacts on earnings linked to the revaluation at the closing US dollar rate of some Airbus balance sheet items, including loss-making contract provisions.

Before the impact of customer financing, EADS expects 2008 Free Cash Flow at above € 2 billion while bearing in mind that this is the most volatile item to predict.

* EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to income or expenses of a non-recurring nature, such as amortization expenses of fair value adjustments relating to the EADS merger, the formation of Airbus S.A.S. and the formation of MBDA, and impairment charges.

EADS revenues are expected to decrease very slightly in 2007 compared to 2006, based on 440 to 450 aircraft deliveries for the full year, mainly due to an assumed exchange rate of € 1 = US$ 1.40.

All other factors held equal, EADS' full year EBIT* is expected to break-even in 2007, reflecting the satisfactory results of the Group's strong legacy programmes, and a lower deterioration of delivered aircraft prices than expected.

This projection is based on the same A400M programme assumptions that underly the charge taken in the third quarter. Besides, it does not take into account the potential influence of short-term currency movements on revaluations of existing provisions.

EADS expects Free Cash Flow to surpass € 1 billion in 2007, provided the sell-down of Paradigm revenue streams from the UK MoD can be completed timely. Were this condition not met, Free Cash Flow is expected to be positive in any case.

* EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to income or expenses of a non-recurring nature, such as amortization expenses of fair value adjustments relating to the EADS merger, the formation of Airbus S.A.S. and the formation of MBDA, and impairment charges.

The revised A380 delivery schedule results in cumulative EBIT* shortfalls of EUR 4.8 billion compared to the margin contribution of its original baseline plan for the years 2006 to 2010 (at $1.30 per EUR 1.00).

From an Income Statement perspective, the management estimates that the A380 series production will generate a cumulative programme EBIT* loss of around EUR 2.8 billion for the years 2006 to 2010, of which approximately EUR 1.1 billion is anticipated in 2006 and approximately EUR 0.7 billion in 2007. The A380 programme shall deliver a first positive EBIT* contribution in 2010. The management estimates that the A380 programme contributions will be substantial beyond 2010.

The above 2006 programme EBIT* loss reflects an estimated EUR 0.6 billion of provisions for A380 loss making contracts. The A380 charges, and charges potentially arising from the outstanding decision on the A350 programme, as well as the amount and phasing of non recurring charges of the "Power8" programme, invalidate the previously provided 2006 EBIT* guidance. Until further notice, EADS will not issue an updated 2006 outlook. Possible contract terminations under the new A380 timetable have not been taken into account in the financial estimates.

* EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to income or expenses of a non-recurring nature, such as amortization expenses of fair value adjustments relating to the EADS merger, the formation of Airbus S.A.S. and the formation of MBDA, and impairment charges.

For the full year 2005, EADS raises its EBIT* target to € 2.75 billion, from a previous target of "more than € 2.6 billion".

The change in EBIT* outlook reflects Airbus delivery increase to 370 aircraft in 2005, most of the growth occurring in the single-aisle category. It also incorporates higher than expected losses at EADS Sogerma Services and additional charges in the Defence & Security Systems Division related to two Unmanned Aerial Vehicle (UAV) programmes in the last quarter of 2005.

EADS expects its 2005 revenues to grow to more than € 33 billion. In 2004, EADS achieved revenues of € 31.8 billion. EADS' group-wide defence revenues should increase by 10 percent during the course of the year to € 8.5 billion.

Continuing the strong cash flow generation in 2004, Free Cash Flow before Customer Financing is expected to remain robust in 2005.

2005 EPS are expected to grow to around € 1.65, based on an expected average of around 800 million shares. This EPS target is partly dependent on the 2005 US dollar closing rate. The previous EPS target was "more than € 1.50" for the full year 2005. The updated EPS guidance reflects mostly the higher EBIT* target.

* EADS uses EBIT pre-goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to income or expenses of a non-recurring nature, such as amortization expenses of fair value adjustments relating to the EADS merger, the formation of Airbus S.A.S. and the formation of MBDA, and impairment charges.

Download our full Annual Report, including the Annual Review, Financial Statements and Registration Document.

For Airbus Group the year 2015 was marked by first flights, record deliveries and breakthroughs in eco-efficiency and innovation – including delivering its 9,000th aircraft, leading high power electric satellites and launching the H160 next-generation helicopter. It also launched the new group-wide Airbus Foundation, integrating the respective activities of all the three Divisions.

The digital version of the Airbus Group Annual Report is conform to Web content accessibility standards, WCAG 2.0, and is certified ISO 14289-1. Its design enables people with motor disabilities to browse through this PDF using keyboard commands. Accessible for people with visual impairments, it has been tagged in full, so that it can be transcribed vocally by screen readers using any computer support.  It has also been tested in full and validated by a visually-impaired expert.

The digital version of the Airbus Group Annual Report is conform to Web content accessibility standards, WCAG 2.0, and is certified ISO 14289-1. Its design enables people with motor disabilities to browse through this PDF using keyboard commands. Accessible for people with visual impairments, it has been tagged in full, so that it can be transcribed vocally by screen readers using any computer support.  It has also been tested in full and validated by a visually-impaired expert.