#1Q1 Results 2022 AIRBUS 04 May 2022 Guillaume FAURY | Chief Executive Officer Dominik ASAM | Chief Financial Officer 986 4350-1000 350 1000#2Safe Harbour Statement DISCLAIMER This presentation includes forward-looking statements. Words such as "anticipates", "believes", "estimates", "expects", "intends", "plans", "projects", "may" and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements made about strategy, ramp-up and delivery schedules, introduction of new products and services and market expectations, as well as statements regarding future performance and outlook. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include but are not limited to: Changes in general economic, political or market conditions, including the cyclical nature of some of Airbus' businesses; Significant disruptions in air travel (including as a result of the spread of disease or terrorist attacks); Currency exchange rate fluctuations, in particular between the Euro and the U.S. dollar; ■ The successful execution of internal performance plans, including cost reduction and productivity efforts; " Product performance risks, as well as programme development and management risks; Customer, supplier and subcontractor performance or contract negotiations, including financing issues; • Competition and consolidation in the aerospace and defence industry; · Significant collective bargaining labour disputes; The outcome of political and legal processes, including the availability of government financing for certain programmes and the size of defence and space procurement budgets; Research and development costs in connection with new products; Legal, financial and governmental risks related to international transactions; ■ Legal and investigatory proceedings and other economic, political and technological risks and uncertainties; • Changes in societal expectations and regulatory requirements about climate change; The full impact of the COVID-19 pandemic and the resulting health and economic crisis; • Aggravation of adverse geopolitical events, including Russia's invasion of Ukraine and the resulting imposition of export control restrictions and international sanctions, and rising military tensions around the world. As a result, Airbus SE's actual results may differ materially from the plans, goals and expectations set forth in such forward-looking statements. For more information about the impact of Russia's invasion of Ukraine, see note 2 "Ukraine Crisis" of the Notes to the Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Statements for the three-month period ended 31 March 2022. For more information about the impact of the COVID-19 pandemic, see note 3 "Impact of the COVID-19 Pandemic" of the Notes to the Airbus SE Unaudited Condensed Interim IFRS Consolidated Financial Statements for the three-month period ended 31 March 2022. For more information about factors that could cause future results to differ from such forward-looking statements, see Airbus SE's annual reports, including its 2021 Universal Registration Document filed on 6 April 2022 and the most recent Risk Factors. Any forward-looking statement contained in this presentation speaks as of the date of this presentation. Airbus SE undertakes no obligation to publicly revise or update any forward-looking statements in light of new information, future events or otherwise. Rounding disclaimer: Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. AIRBUS#3AIRBUS Q1 Results 2022 Company Highlights Divisional Highlights Guidance Highlights Appendix AIRBUS#4Q1 2022 Key Topics ◉ Evolving and complex geopolitical and economic environment 142 (¹) commercial aircraft delivered in Q1 2022 ■ A320 family: Monthly production rates to increase to 75 in 2025 to meet customer demand Q1 2022 financials: EBIT Adjusted of € 1.3 bn; EBIT reported of € 1.4 bn FCF before M&A and Customer Financing of € 0.2 bn Guidance unchanged; more challenging risk profile for the remainder of 2022 (1) Before a reduction of 2 a/c previously recorded as sold in December 2021 for which a transfer was not possible due to international sanctions against Russia 4 AIRBUS#5Q1 2022 Commercial Positioning Consolidated Airbus Order Book by Division Consolidated Airbus External Revenue by Division Q1 2022 Q1 2021 Change Airbus 70% Order Intake 83 (61) N/A Helicopters 10% Airbus (in units) (net) Defence and Order Book 7,023 6,998 0.4% € 12.0 bn t/o defence 20% Space Helicopters (in units) Order Intake (net) 56 40 40.0% € 2.4 bn Order Book 756 664 13.9% Defence and Space Order Intake 3,211 1,962 63.6% (in € m) (net) AIRBUS: Gross orders: 253 a/c; Net orders: 83 a/c; Backlog: 7,023 a/c HELICOPTERS: 56 net orders and the Tiger MKIII upgrade programme DEFENCE AND SPACE: Order intake € 3.2 bn, including Eurodrone global contract 5 AIRBUS#6Q1 2022 Financial Performance Revenues in € bn 12.0 10.5 Q1 2021 Q1 2022 EPS (1) Adjusted in € 0.58 1.14 EBIT Adjusted in €bn/RoS (%) 6.6% 10.5% 1.3 0.7 Q1 2021 Q1 2022 FCF before M&A and Customer Financing in € bn 1.2 0.2 Q1 2021 Q1 2022 Q1 2021 Q1 2022 (1) Q1 2022 Average number of shares: 785,841,075 compared to 783,986,683 in Q1 2021 Capitalised R&D: € 42 m in Q1 2022 and € 16 m in Q1 2021 6 AIRBUS#7Q1 2022 Profitability EBIT Performance in € bn 0.7 1.3 0.5 Q1 2022 EBIT Reported of € 1,429 m Q1 2022 EBIT Adjustments resulting from: 190 m 11 m 13 m PDP mismatch / BS revaluation A380 programme Others Q1 2022 Net Adjustments of € + 166 m ■ € + ■ € 1.4 ■ € EBIT Adjusted EBIT Reported ■ Q1 2021 ■ Q1 2022 EPS (1) Performance in € 1.14 0.58 0.46 1.55 EPS Adjusted EPS Reported ■ Q1 2021 Q1 2022 (1) Q1 2022 Average number of shares: 785,841,075 compared to 783,986,683 in Q1 2021 Capitalised R&D: € 42 m in Q1 2022 and € 16 m in Q1 2021 ■ Q1 2022 Net Income of € 1,219 m Q1 2022 Net Income Adjusted of € 892 m 7 AIRBUS#8Currency Hedge Policy IN $ BILLION 4.4 20.4 19.5 16.2 13.3 9.5 7.0 Forward Sales as of Mar. 2022 Forward Sales as of Dec. 2021 1.1 2027 2028 Average hedge rates 2022 Remaining 9 months 2023 2024 2025 2026 € vs $ 1.23 1.22 1.23 1.25 1.30 Forwards (1.22 in Dec. 21) (1.23 in Dec. 21) (1.24 in Dec. 21) (1.26 in Dec. 21) (1.31 in Dec. 21) 1.34 (1.35 in Dec. 21) ■ In Q1 2022 $4.4 bn (1) of hedges matured at an average rate of € 1 = $ 1.21 $ 3.5 bn (1) of new Forwards were added at € 1 = $ 1.18 Hedge portfolio (1) as of 31 March 2022 at $ 87.1 bn (vs. $ 88.3 bn in December 2021), at an average rate of $ 1.25 Approximately 60% of Airbus US$ revenues are naturally hedged by US$ procurement. Graph shows US$ Forward Sales Hedge rates reflect EBIT impact of the US$ hedge portfolio (1) Total hedge amount contains €/$ and £/$ designated hedges. 1.32 (1.32 in Dec. 21) Mark-to-market value incl. in AOCI = € - 5.3 bn Closing rate @ 1.11 € vs. $ 8 AIRBUS#9Q1 2022 Cash Evolution IN € BILLION 7.7 -0.7 +1.2 -0.4 -0.0 -0.2 Free Cash Flow before M&A: € + 0.2 bn t/o Customer Financing € + + 0.0 bn Free Cash Flow before M&A and Customer Financing: € + 0.2 bn 7.7 (1) Net Cash Position December 2021 (2) Gross Cash Flow from Operations Change in Working Capital (3) Cash used for investing activities before M&A (1) M&A Pensions & Others Net Cash Position March 2022 (1) The Company has decided to refine the net cash definition to include interest rate contracts related to fair value hedges which is also reflected in the Q1 2022 balance (2) Thereof CapEx of € - 0.3 bn (3) M&A transactions include acquisitions and disposals of subsidiaries and businesses 9 AIRBUS#10AIRBUS Q1 Results 2022 Company Highlights Divisional Highlights Guidance Highlights Appendix AIRBUS#11AIRBUS Deliveries by Programme (Units) IN € MILLION Q1 2022 Q1 2021 Change Order Intake (net) 83 (61) N/A Units Order Book 7,023 6,998 0.4% Deliveries Revenues R&D Expenses in %of Revenues Units 142 (1) 125 13.6% A220 8% A320 77% A330 4% A350 11% 8,541 7,272 17.5% 477 520 -8.3% 5.6% 7.2% EBIT Adjusted in %of Revenues 1,065 533 99.8% 12.5% 7.3% EBIT in %of Revenues 1,242 343 External Revenue Split 262.1% 14.5% 4.7% Platforms 91% Services 9% Deliveries: 142 (1) aircraft comprising 11 A220, 109 A320 Family, 6 A330 and 16 A350 Revenues mainly reflect higher deliveries as well as a favourable mix EBIT Adjusted also reflects efforts on competitiveness, costs containment, impact from retirement obligations, partly offset by consequences of international sanctions 0 (1) Before a reduction of 2 a/c previously recorded as sold in December 2021 for which a transfer was not possible due to international sanctions against Russia Capitalised R&D: € 16 m in Q1 2022 and € 1 m in Q1 2021 11 AIRBUS#12AIRBUS Helicopters IN € MILLION Order Intake (net) Units Order Book Deliveries Revenues R&D Expenses in %of Revenues EBIT Adjusted in %of Revenues EBIT in %of Revenues Q1 2022 Q1 2021 Change 56 40 40.0% 756 664 13.9% Units 39 39 0.0% 1,265 1,177 7.5% 56 55 1.8% 4.4% 4.7% 90 62 45.2% 7.1% 5.3% 90 62 45.2% 7.1% 5.3% ■ Revenues reflect growth in services and favourable mix in programmes ■ EBIT Adjusted also reflects non-recurring elements, including impact from retirement obligations Capitalised R&D: €0 m in Q1 2022 and €0 m in Q1 2021 External Revenue Split 0 Civil 40% Defence 60% Platforms 44% Services 56% 12 AIRBUS#13AIRBUS Defence and Space IN € MILLION Order Intake (net) Q1 2022 Q1 2021 Change 3,211 1,962 63.6% Revenues R&D Expenses 2,453 2,115 16.0% 53 47 12.8% in %of Revenues 2.2% 2.2% EBIT Adjusted 106 59 79.7% in %of Revenues 4.3% 2.8% EBIT 95 17 458.8% in %of Revenues 3.9% 0.8% ■ Revenues mainly reflect higher volume on Military Aircraft and Eurodrone contract signature ■ EBIT Adjusted also reflects impact from retirement obligations, offset by consequences of international sanctions ■ A400M: 1 a/c delivered in Q1 2022 Capitalised R&D: € 26 m in Q1 2022 and € 15 m in Q1 2021 External Revenue Split Platforms 69% Services 31% 13 Military Aircraft 52% Space Systems 25% Connected Intelligence 24% & Others AIRBUS#14AIRBUS Q1 Results 2022 Company Highlights Divisional Highlights Guidance Highlights JETOX p011 Appendix AIRBUS#152022 Guidance The guidance issued in February 2022 remains unchanged. As the basis for its 2022 guidance, the Company assumes: ■ no further disruptions to the world economy, air traffic, the Company's internal operations, and its ability to deliver products and services. The Company's 2022 guidance is before M&A. On that basis, the Company targets to achieve in 2022 around: 720 commercial aircraft deliveries; EBIT Adjusted of € 5.5 billion; Free Cash Flow before M&A and Customer Financing of € 3.5 billion 15 AIRBUS#16Key Priorities ◉ ◉ Deliver on our Guidance Further strengthen the backlog across businesses Deliver on our commercial aircraft ramp-up ☐ Continue the transformation of the Company Lead the development of sustainable aerospace Focus on earnings and cash growth trajectory beyond 2022 16 AIRBUS#17AIRBUS Q1 Results 2022 Company Highlights Divisional Highlights Guidance Highlights Appendix AIRBUS#18Expected Average Hedge Rates € vs. $ 1.28 1.26 1.24 Active exposure management 1.22 1.21 1.20 1.18 1.16 1.16 FY 2021 Average Hedge Rates 1.20 1.24 1.23 1.23 1.23 FY 2022E 1.22 1.14 Q1 Q2 Hedge rates reflect EBIT impact of the US$ hedge portfolio (1) Q1 actual 1.19 1.22 Q3 Q4 2021 -2022E 18 AIRBUS#19Q1 2022 Detailed Income Statement and Adjustments thereof Adjustments Impact on EBIT IN € MILLION EBIT in % of Revenues Interest income Interest expense Other Financial Result Financial Result Income before taxes Non-controlling interests Net Income Number of shares EPS (in €) Net Income Adjusted excludes the following items: Q1 2022 Reported Operational FX Financial Result Q1 2022 Adjusted Airbus Defence and Space (1) Airbus + Defence Helicopters and Space (2) 1,429 1,263 (23) (1) 0 190 11.9% 10.5% 2 2 (78) (78) 242 243 (1) 166 243 (77) 1,595 (23) (1) 0 190 243 1,186 26 26 1,219 892 785,841,075 785,841,075 ▪Adjustments impacting the EBIT line (as reported in the EBIT Adjusted) 1.55 ■The Other Financial Result, except for the unwinding of discounted provisions The tax effect on Adjusted Income before taxes is calculated at 27%. The effective tax rate on Income before taxes is 25%. 1.14 (1) Thereof € 1 m A400M programme update (2) Thereof € + 200 m Airbus, € - 10 m Defence and Space 19 AIRBUS#20Q1 2021 Detailed Income Statement and Adjustments IN € MILLION Q1 2021 Reported thereof Adjustments Impact on EBIT Operational FX Financial Result Airbus Defence and Space Airbus Defence Helicopters and Space (1) 462 (53) (2) 0 (177) 4.4% 14 Q1 2021 Adjusted 694 6.6% 14 (96) 141 148 (7) 59 148 (89) 521 (53) (2) 0 (177) 148 605 16 16 362 458 783,986,683 783,986,683 0.46 0.58 EBIT in % of Revenues Interest income Interest expense Other Financial Result Financial Result Income before taxes Non-controlling interests Net Income Number of shares EPS (in €) (96) Net Income Adjusted excludes the following items: ▪Adjustments impacting the EBIT line (as reported in the EBIT Adjusted) ▪The Other Financial Result, except for the unwinding of discounted provisions The tax effect on Adjusted Income before taxes is calculated at 27%. The effective tax rate on Income before taxes is 34%. (1) Thereof € 137 m Airbus, € - 40 m Defence and Space 20 20 AIRBUS#21Liquidity as of 31 March 2022 € 6.0 bn Credit Facility (RSCF) € 22.8 bn Total Gross Cash Invested in highly rated securities € 15.1 bn (1) Total Gross Debt Incl. interest rate contracts RSCF: · Signed October 2020 with maturity of 3 years + 2 extension options of 1 year. First extension option exercised extending the maturity to October 2024; undrawn Fully committed by 33 banks ■ No financial covenants, no MAC clause Financing Liabilities: of which long-term: € 12.5 bn Includes € 9.0 bn EMTN and $2.3 bn 144A/RegS & USPP (nominal amounts) Credit Ratings: Short-term rating: ■ S & P: € 7.7 bn " ■ Moody's: A-1 P-1 (2) Net Cash (1) The Q1 2022 Gross Debt includes financing liabilities for € 14.6 bn and interest rate contracts related to fair value hedges for € 0.5 bn (2) The Company has decided to refine the net cash definition to include interest rate contracts related to fair value hedges which is also reflected in the Q1 2022 balance Long-term rating: " S & P: Moody's: A stable A2 stable 21 21 AIRBUS#22Q1 2022 Key Figures IN € MILLION Revenues EBIT Adjusted EBIT Net Income Q1 2022 Q1 2021 12,000 10,460 1,263 694 1,429 462 1,219 362 FCF before M&A 167 1,171 FCF before M&A and Customer Financing 213 1,202 IN € MILLION Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Revenues EBIT Adjusted EBIT Airbus Helicopters Defence and Space 8,541 7,272 1,065 533 1,242 343 1,265 1,177 90 62 90 62 2,453 2,115 106 59 95 17 Eliminations (259) (104) 2 40 2 40 Consolidated Airbus 12,000 10,460 1,263 694 1,429 462 22 22 AIRBUS#23Detailed Free Cash Flow IN € MILLION Q1 2022 Net Cash position at the beginning of the period (1) 7,740 Q1 2021 4,724 Gross Cash Flow from Operations (2) 1,214 585 (3) Change in working capital (662) 1,022 (4) Cash used for investing activities (391) (443) of which Industrial CapEx (additions) (5) (337) (460) (6) Free Cash Flow 161 1,164 of which M&A (6) (7) Free Cash Flow before M&A 167 1,171 of which Customer Financing (46) (31) Free Cash Flow before M&A and Customer Financing 213 1,202 Change in capital and non-controlling interests 139 133 Change in treasury shares / share buyback (36) Change in liability for puttable instruments 134 Contribution to plan assets of pension schemes Cash distribution to shareholders / non-controlling interests Others (70) 0 (175) 0 (357) 30 Net Cash position at the end of the period (1 (1) 7,711 5,876 (1) The Company has decided to refine the net cash definition to include interest rate contracts related to fair value hedges which is also reflected in the Q1 2022 balance (2) Excluding working capital change, contribution to plan assets of pension schemes and realised FX results on treasury swaps (3) Including net customer financing and excluding some perimeter change impacts from changes in consolidation (4) Excluding change in securities and change in cash from changes in consolidation and excluding bank activities (5) Excluding leased and financial assets (6) Excluding change in securities, change in cash from changes in consolidation, contribution to plan assets, realised FX results on treasury swaps and bank activities 23 23 AIRBUS#24Net Cash Position IN € MILLION Gross Cash Mar. 2022 Dec. 2021 22,683 22,816 Financing Liabilities (14,572) (15,040) Short-term Financing Liabilities (2,045) (1,946) Long-term Financing Liabilities (12,527) (13,094) Interest rate contracts (533) 97 Reported Net Cash (1) 7,711 7,740 (1) The Company has decided to refine the net cash definition to include interest rate contracts related to fair value hedges which is also reflected in the Q1 2022 balance 24 AIRBUS#25Customer Financing Exposure IN € MILLION Closing rate € 1 = Total Gross Exposure of which off-balance sheet Estimated value of collateral Mar. 2022 $ 1.11 Airbus Dec. 2021 Mar. 2022 $ 1.13 $ 1.11 366 364 Dec. 2021 Helicopters 33 33 $ 1.13 58 41 41 1 26 (292) (282) (33) (58) Net Exposure 74 82 0 0 Provision and asset impairment (74) (82) 0 0 Net Exposure after provision 0 0 0 0 25 25 AIRBUS#26Airbus Customer Financing IN € BILLION Airbus Customer Financing Gross Exposure Additions Sell Down Amortization Net change 1.0 0.8 0.8 0.9 0.8 0.7 0.6 0.6 0.5 0.6 0.3 0.3 0.2 0.1 0.0 0.0 (0.2) (0.2) (0.0) (0.3) (0.2) (0.3) (0.1) (0.7) (0.7) (1.1) (0.1) (0.6) (0.7) (0.7) (0.5) (0.4) (0.6) (0.7) (0.0) (0.1) (0.1) (0.1) (0.1) (0.2) (0.2) (0.1) (0.1) (0.2) (0.1) (0.2) (0.1) (0.1) 2007 2008 2009 2010 2011 2012 2013 2014 2015 Gross Exposure in $ bn 1.5 1.5 1.8 | 1.7 | 1.4|||| 1.5 1.6 1.3 1.5 || 1.7 | 1.5 2016 2017 2018 2019 2020 0.8 | 0.9 | Net Exposure fully provisioned Gross Exposure Net Exposure € 0.1 bn Estimated Collateral € 0.4 bn € 0.3 bn ($ 0.4 bn) ($ 0.3 bn) 31 December 2021 €/$ = 1.13 2021 2022 0.5 0.4 0.4 Net Exposure fully provisioned Gross Exposure Net Exposure € 0.1 bn Estimated Collateral € 0.4 bn € 0.3 bn ($ 0.4 bn) ($ 0.3 bn) 31 March 2022 €/$ = 1.11 26 AIRBUS#27Balance Sheet Highlights: Assets IN € MILLION Non-current Assets of which Intangible & Goodwill Mar. 2022 Dec. 2021 51,019 51,247 16,399 16,367 of which Property, plant & equipment 16,336 16,536 of which Investments & other long-term financial assets 5,928 5,673 of which Contract assets 25 27 of which Positive hedge mark-to-market 542 664 of which Non-current securities Current Assets of which Inventory of which Contract assets of which Cash and cash equivalents of which Current securities 6,648 6,794 59,138 55,800 30,211 28,538 1,633 1,377 15,045 14,572 1,123 1,317 of which Positive hedge mark-to-market 444 341 Assets of disposal groups classified as held for sale 0 Total Assets 110,157 107,047 Closing rate € vs. $ 1.11 1.13 27 27 AIRBUS#28Balance Sheet Highlights: Liabilities IN € MILLION Mar. 2022 Total Equity 10,895 of which AOCI (Accumulated Other Comprehensive Income) (2,567) Dec. 2021 9,486 (1,822) of which Non-controlling interests 25 20 Total Non-current liabilities 48,837 49,754 of which Pensions 5,261 6,659 of which Other provisions 4,071 4,112 of which Financing liabilities 12,527 13,094 of which European Governments' refundable advances 3,742 3,730 of which Contract liabilities 19,123 18,620 of which Negative hedge mark-to-market 3,152 2,640 Total Current liabilities of which Pensions 50,425 47,807 400 413 of which Other provisions 4,047 4,097 of which Financing liabilities 2,045 1,946 of which European Governments' refundable advances 131 131 of which Contract liabilities 24,594 23,906 of which Trade liabilities 10,296 9,693 of which Negative hedge mark-to-market 2,364 1,923 Liabilities of disposal groups classified as held for sale 0 0 Total Liabilities and Equity 110,157 107,047 28 28 AIRBUS#29Shareholding Structure at 31 March 2022 Free Float 74.0% Shareholder Agreement 25.9% 788,136,199 shares issued at 31 March 2022 SOGEPA GZBV SEPI 10.9% 10.9% 4.1% Treasury Shares 0.1% 29 29 AIRBUS#30Quarterly Revenues Breakdown (Cumulative) IN € MILLION 2022 Q1 2021 2022 H1 2021 2022 9m 2021 2022 FY 2021 Airbus Helicopters Defence and Space 8,541 7,272 17,813 24,618 36,164 1,265 1,177 2,594 4,137 6,509 2,453 2,115 4,538 6,881 10,186 Eliminations (259) (104) (308) (481) Consolidated Airbus 12,000 10,460 24,637 35,155 (710) 52,149 AIRBUS 30 30#31Quarterly EBIT Adjusted Breakdown (Cumulative) IN € MILLION 2022 Q1 2021 2022 H1 2021 2022 9m 2021 2022 FY 2021 Airbus Helicopters Defence and Space Eliminations 1,065 533 2,291 2,739 3,570 90 62 183 314 535 106 59 229 284 696 2 40 0 32 64 Consolidated Airbus 1,263 694 2,703 3,369 4,865 31 AIRBUS#32Quarterly EBIT Breakdown (Cumulative) IN € MILLION 2022 Q1 2021 2022 H1 2021 2022 9m 2021 2022 FY 2021 Airbus Helicopters Defence and Space Eliminations 1,242 343 2,387 2,889 4,175 90 62 183 312 535 95 17 157 204 568 2 40 0 32 64 Consolidated Airbus 1,429 462 2,727 3,437 5,342 32 AIRBUS#33Q1 2022 IFRS vs. APM Cash Flow Reconciliation IN € BILLION Cash provided by (used for) operating activities t/o Reimbursement from /contribution to plan assets t/o Treasury swaps t/o Change in other operating assets and liabilities Gross Cash Flow from Operations Mar. 2022 IN € BILLION 0.5 (0.1) 0.0 (0.7) 1.2 Cash provided by (used for) operating activities Cash provided by (used for) investing activities t/o Net proceeds (payment) Others Free Cash Flow Mar. 2022 0.5 (0.4) 0.1 0.1 0.2 (0.0) Free Cash Flow before M&A 0.2 t/o Customer Financing (0.0) FCF before M&A and Customer Financing 0.2 t/o M&A transactions AIRBUS 33 33#34Glossary on Alternative Performance Measures (APM) This presentation also contains certain "non-GAAP financial measures", i.e. financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. For example, Airbus makes use of the non-GAAP measures "EBIT Adjusted", "EPS Adjusted" and "Free Cash Flow". Airbus uses these non-GAAP financial measures to assess its consolidated financial and operating performance and believes they are helpful in identifying trends in its performance. These measures enhance management's ability to make decisions with respect to resource allocation and whether Airbus is meeting established financial goals. Non-GAAP financial measures have certain limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of Airbus' results as reported under IFRS. Because of these limitations, they should not be considered substitutes for the relevant IFRS measures. ■ EBIT: Airbus continues to use the term EBIT (Earnings before interest and taxes). It is identical to Profit before finance cost and income taxes as defined by IFRS Rules. • Adjustment is an alternative performance measure used by Airbus which includes material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses. ■ EBIT Adjusted: Airbus uses an alternative performance measure, EBIT Adjusted as a key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses. ■ EPS Adjusted is an alternative performance measure of a basic EPS as reported whereby the net income as the numerator does include Adjustments. For reconciliation see slide "Detailed Income Statement and Adjustments". ■ Gross cash position: Airbus defines its consolidated gross cash position as the sum of (i) cash and cash equivalents and (ii) securities (all as recorded in the consolidated statement of financial position). ■ Net cash position: Airbus defines its consolidated net cash position as the sum of (i) cash and cash equivalents and (ii) securities, minus (iii) financing liabilities, plus or minus (iiii) interest rate contracts related to fair value hedges (all as recorded in the Consolidated Statement of Financial Position). ■ Gross cash flow from operations: Gross cash flow from operations is an alternative performance measure and an indicator used by Airbus to measure its operating cash performance before changes in other operating assets and liabilities (working capital). It is defined in the Universal Registration Document, MD&A section 2.1.6.1. as cash provided by operating activities, excluding (i) changes in other operating assets and liabilities (working capital), (ii) contribution to plan assets of pension schemes and (iii) realised foreign exchange results on treasury swaps. Changes in working capital: it is identical to changes in other operating assets and liabilities as defined by IFRS Rules. It is comprised of inventories, trade receivables, contract assets and contract liabilities (including customer advances), trade liabilities, and other assets and other liabilities. ■ FCF: For the definition of the alternative performance measure free cash flow, see Universal Registration Document, MD&A section 2.1.6.1. It is a key indicator which allows the Company to measure the amount of cash flow generated from operations after cash used in investing activities. ■ FCF before M&A refers to Free Cash Flow as defined in the Universal Registration Document, MD&A section 2.1.6.1. adjusted for net proceeds from disposals and acquisitions. It is an alternative performance measure and indicator that is important in order to measure FCF excluding those cash flows from the acquisition and disposal of businesses. ■ FCF before M&A and Customer Financing refers to free cash flow before mergers and acquisitions adjusted for cash flow related to aircraft financing activities. It is an alternative performance measure and indicator that may be used occasionally by the Company in its financial guidance, especially when there is higher uncertainty around customer financing activities. AIRBUS