2020 Financial Statements

2. Notes to the IFRS Consolidated Financial Statements / 2.4 Airbus Performance Segment order backlog 31 December 2020 2019 (In € million) (in %) (In € million) (in %) Airbus 324,675 87 424,082 90 Airbus Helicopters 15,782 4 16,627 3 Airbus Defence and Space 33,505 9 32,263 7 Eliminations (835) 0 (1,484) 0 Total 373,127 100 471,488 100 As of 31 December 2020, the total backlog represents the aggregate amount of the transaction price allocated to the unsatisfied and partially unsatisfied performance obligations to the Company’s customers. Backlog commitments are relative to the Company’s enforceable contracts with its customers where it is probable that the consideration will be collected. The value of the backlog is measured in accordance with the revenue recognition standard (IFRS 15). As a result, contractual rebates, engines concessions, and variable considerations are taken into consideration for measurement. Contracts stipulated in a currency different than the presentation currency are translated to euro using the spot rate as of 31 December 2020 and 2019 respectively. Adjustments to the value of the backlog could result from changes in the transaction price. The backlog valuation is based on the estimates and assumptions (see “– Note 4: Key Estimates and Judgements”) and will mainly be released into revenue over a period of seven years. The decrease reflects the higher number of deliveries as compared to order intake, the weakening of the US dollar and a thorough reassessment of the recoverability of the order backlog. 2.4 Airbus Performance 12. Revenue and Gross Margin Revenue decreased by € -20,566 million to € 49,912 million (2019: € 70,478 million). The decrease is mainly driven by Airbus (€ -20,518 million) reflecting lower deliveries of 566 aircraft (in 2019: 863 aircraft) in line with the production adaptation plan set out in April 2020 in response to the COVID-19 pandemic (see “– Note 2: Impact of the COVID-19 pandemic”). Revenue by geographical areas based on the location of the customer is as follows: (In € million) 2020 2019 Asia-Pacific 13,087 22,625 Europe 20,325 22,591 North America 8,688 12,036 Middle East 3,123 7,053 Latin America 983 1,851 Other countries 3,706 4,322 Total 49,912 70,478 The gross margin decreased by €-4,843 million to €5,662 million compared to €10,505 million in 2019. It mainly reflects lower deliveries and lower cost efficiency at Airbus. The gross margin rate decreased from 14.9% to 11.3%. As of 31 December 2018, the Company’s largest A380 operator reviewed its aircraft fleet strategy going forward and concluded it is forced to restructure and reduce its A380 order by 39 aircraft. As a consequence of this decision, deliveries of the A380 will cease in 2022. At year-end 2018, the Company impaired specif ic A380 assets in the amount of €167 million, recognised an onerous contract provision for an amount of €1,257 million and updated the measurement of refundable advances including interest accretion for a total amount of €1,426 million. As a consequence, the recognition of the onerous contract provision as well as other specific provisions and the remeasurement of the liabilities affected the consolidated income statement before taxes by a net € 463 million in EBIT and positively impacted the other financial result by €177 million. 28 Airbus / Financial Statements 2020