AIRBUS - 2019 Financial Statements

2.7 Capital Structure and Financial Instruments Notes to the IFRS Consolidated Financial Statements /

36. Net Cash

The net cash position provides financial flexibility to fund the Company’s operations, to react to business needs and risk profile and to return capital to the shareholders.

31 December

2019

2018

(In € million)

Cash and cash equivalents

9,314

9,413

2,302

2,132

Current securities

11,066

10,662

Non-current securities

22,682

22,207

Gross cash position

(1,959)

(1,463)

Short-term financing liabilities

Long-term financing liabilities

(8,189)

(7,463)

Total

12,534

13,281

The net cash position on 31 December 2019 amounted to € 12,534 million (2018: € 13,281 million), with a gross cash position of €22,682 million (2018: €22,207 million). Derivative instruments recognised on the Company’s Statement of Financial Position consist of (i) instruments that are entered into as hedges of the Company’s operating activities or interest result, and (ii) embedded foreign currency derivatives that arise

from separating the foreign currency component from certain operating contracts. Cash flows resulting from the settlement of these derivatives are therefore recorded as part of cash flow from operations. Similarly, financial assets and liabilities arising from customer financing activities and refundable advances from European Governments are considered part of operating activities and related cash flows are hence recognised as cash flows from operating activities.

36.1 Cash and Cash Equivalents Cash and cash equivalents are composed of the following elements:

31 December

2019

2018

(In € million)

Bank account and petty cash

1,649

1,862

7,014

6,576

Short-term securities (at fair value through profit and loss)

652

984

Short-term securities (at fair value through OCI)

(1)

6

Others

Total cash and cash equivalents

9,314

9,428

Recognised in disposal groups classified as held for sale

0

15

Recognised in cash and cash equivalents

9,314

9,413

Only securities with a maturity of three months or less from the date of the acquisition, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, are recognised in cash equivalents. 36.2 Securities

The majority of the Company’s securities consist of debt securities and are classified at fair value through OCI (see “– Note 37.2: Carrying Amounts and Fair Values of Financial Instruments”). The Company’s securities portfolio amounts to €13,368 million and € 12,794 million as of 31 December 2019 and 2018, respectively. The security portfolio contains a non-current portion of €11,066 million (2018: €10,662 million), and a current portion of €2,302 million (2018: €2,132 million). Included in the securities portfolio as of 31 December 2019 and 2018, respectively, are corporate and government bonds bearing either fixed rate coupons (€12,908 million nominal value; 2018:

€12,152 million) or floating rate coupons (€188 million nominal value; 2018: € 504 million), foreign currency funds of hedge funds (€0 million nominal value; 2018: €0 million) and foreign currency funds of fixed income funds (€5 million fair value; 2018: €10 million). When the Company enters into securities lending or other financing activities that involve the pledging of securities as collateral, the securities pledged continue to be recognised on the balance sheet. As of 31 December 2019, securities for an amount of €145 million were pledged as collateral for borrowings from banks (2018: €63 million).

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Airbus / Financial Statements 2019