DGAP-Adhoc: Airbus SE: Airbus signs Declaration of Intent with A400M Launch Customer Nations

DGAP-Ad-hoc: Airbus SE / Key word(s): Miscellaneous 
Airbus signs Declaration of Intent with A400M Launch Customer Nations 
 
07-Feb-2018 / 17:45 CET/CEST 
Disclosure of an inside information acc. to Article 17 MAR, transmitted by 
DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
 
*Ad-hoc release, 7 February 2018* 
 
*Airbus signs Declaration of Intent with A400M Launch Customer Nations * 
 
- Serves as a milestone to help mitigate programme risks going forward 
 
- Agreement defines framework for mutually binding contract amendment in 
2018 
 
Airbus SE (stock exchange symbol: AIR) has signed a Declaration of Intent 
(DoI) with the A400M Launch Customer Nations (Germany, France, United 
Kingdom, Spain, Turkey, Belgium, Luxemburg) defining the framework for 
achieving a mutually binding contract amendment later in the year. 
 
Airbus, European defence agency OCCAR and the Customer Nations have agreed 
to work on a number of contractual elements including a revamped delivery 
plan as well as a roadmap for the development and completion of military 
capabilities for the A400M. 
 
The DoI, finalised today, represents an important step towards reaching a 
contractually binding agreement with OCCAR and the Launch Customer Nations 
in 2018 to mitigate risks and to ensure the future of the programme. OCCAR 
is managing the A400M programme on behalf of the seven Launch Customer 
Nations. 
 
This Declaration of Intent provides a new baseline on which to evaluate the 
A400M contract. 
An increase to the Loss Making Contract provision on the programme, which 
may be material, is under assessment for the Full Year 2017 results which 
will be disclosed on 
15 February 2018. With a clear roadmap in place, the remaining exposure 
going forward would be more limited. 
 
"This agreement with our customers is an important step to further mitigate 
risks remaining on the A400M programme. I thank the nations for their 
support in this complex effort and hope for their continued engagement until 
we sign a mutually beneficial contract amendment," said Tom Enders, Chief 
Executive Officer of Airbus. "On this basis, Airbus remains committed to the 
A400M and to providing our customers' air forces with the best-ever military 
transport aircraft. However, since its inception in 2003, this programme has 
suffered not only from a number of operational issues but, more importantly, 
under a flawed contractual set-up and insufficient budget which resulted in 
significant losses for Airbus as prime contractor. We have a good chance to 
stop or at least reduce the bleeding now and deliver the capabilities our 
customers need." 
 
In February 2017, Airbus called upon the Launch Customer Nations to engage 
in discussions with respect to readjusting the contractual set-up of the 
A400M, one of Europe's most important and largest joint defence 
collaboration programmes ever. 
 
During a Ministerial conference on 30 March 2017 in Madrid, the Launch 
Customer Nations expressed their willingness to support such a dialogue and 
to enter into contract adjustment discussions with Airbus. 
 
Since then, Airbus and OCCAR have set up a number of working groups 
assessing areas requiring adjustments such as delivery planning as well as 
the military capabilities development roadmap, the results of which have led 
to today's DoI. 
 
In view of the ongoing confidential discussions required to reach binding 
terms, both parties have agreed to refrain from further comment. 
 
***** 
 
*About Airbus* 
Airbus is a global leader in aeronautics, space and related services. In 
2016 it generated revenues of EUR67 billion and employed a workforce of 
around 134,000. Airbus offers the most comprehensive range of passenger 
airliners from 100 to more than 600 seats and business aviation products. 
Airbus is also a European leader providing tanker, combat, transport and 
mission aircraft, as well as one of the world's leading space companies. In 
helicopters, Airbus provides the most efficient civil and military 
rotorcraft solutions worldwide. 
 
*Media contacts* 
Martin Agüera [phone] 
Kieran Daly [phone] 
Rod Stone [phone] 
 
07-Feb-2018 CET/CEST The DGAP Distribution Services include Regulatory 
Announcements, Financial/Corporate News and Press Releases. 
Archive at www.dgap.de 
Language: English 
Company:  Airbus SE 
          P.O. Box 32008 
          2303 DA Leiden 
          Netherlands 
Phone:    [phone] 
Fax:      [phone] - 26481 
Internet: www.airbusgroup.com 
ISIN:     NL0000235190 
WKN:      938914 
Indices:  MDAX 
Listed:   Regulated Market in Frankfurt (Prime Standard); Regulated 
          Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, 
          Stuttgart, Tradegate Exchange 
 
End of Announcement DGAP News Service 
 
652349 07-Feb-2018 CET/CEST 
 
 

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February 07, 2018 11:45 ET (16:45 GMT)