AIRBUS - 2019 Financial Statements

Notes to the IFRS Company Financial Statements /

Sensitivities of market risks — the approach used to measure and control market risk exposure within the Group’s financial instrument portfolio is amongst other key indicators the value-at-risk (“VaR”). For information about VaR and the approach used by the Company to assess and monitor sensitivities of market risks please refer to section 35.1 “Financial Risk Management” of the Notes to the Consolidated Financial Statements.

The Company is part of the Group risk management process, which is more fully described in section 35.1 “Financial Risk Management” of the Notes to the Consolidated Financial Statements.

A summary of the VaR position of the Company’s financial instruments portfolio at 31 December 2019 and 31 December 2018 is as follows:

Equity price VaR

Currency VaR

Interest rate VaR

Total VaR

(In € million)

31 December 2019 Foreign exchange hedges

41

0

41

1

Financing liabilities, financial assets (including cash, cash equivalents, securities and related hedges)

51

34

42

36

Equity swaps

3

3

0

0

Diversification effect

(48)

(2)

(76)

(1)

All financial instruments

47

35

7

36

31 December 2018 Foreign exchange hedges

35

0

35

0

Financing liabilities, financial assets (including cash, cash equivalents, securities and related hedges)

52

34

35

24

Equity swaps

3

3

0

0

Diversification effect

(51)

(2)

(68)

0

All financial instruments

39

35

2

24

The increase in the total VaR compared to 31 December 2018 is mainly attribuable to Interest Rate due to IR curve change and modelisation Update. The exposure increase despite a decrease of market volatilitiy on EUR/USD. The derivative instruments entered into with external counterparties are passed on a 1:1 basis to Airbus entities. As a result, the respective market risks of the external derivative instruments are offset by corresponding opposite market risks of intragroup transactions. Liquidity Risk The Company’s policy is to maintain sufficient cash and cash equivalents at any time to meet its own and the Group’s present and future commitments as they fall due. For information on how the Group monitors and manages liquidity risk, please refer to section 35.1 “Financial Risk Management” of the Notes to the Consolidated Financial Statements. The contractual maturities of the Company financial liabilities, based on undiscounted cash flows and including interest payments, if applicable, are as follows:

Carrying amount

Contractual cash flows <1 year

1 year- 2 years

2 years- 3 years

3 years- 4 years

4 years- 5 years > 5 years

(In € million)

4

31 December 2019 Non-derivative financial liabilities

(6,580)

(7,773)

(125)

(1,291)

(124)

(1,015)

(1,100)

(4,118)

Derivative financial liabilities

(4,691)

(6,188)

(1,741)

(1,804)

(1,421)

(862)

(298)

(62)

Total

(11,271)

(13,961)

(1,866)

(3,095)

(1,545)

(1,877)

(1,398)

(4,180)

31 December 2018 Non-derivative financial liabilities

(6,746)

(7,766)

(48)

(48)

(1212)

(547)

(921)

(4,990)

Derivative financial liabilities

(3,921)

(4,768)

(2,085)

(1,160)

(856)

(427)

(160)

(80)

Total

(10,667)

(12,534)

(2,133)

(1,208)

(2,068)

(974)

(1,081)

(5,070)

105

Airbus / Financial Statements 2019