AIRBUS - 2020 Financial Statement

4. Notes to the IFRS Company Financial Statements /

A summary of the VaR position of the Company’s financial instruments portfolio at 31 December 2020 and 31 December 2019 is as follows:

Equity price VaR

Currency VaR

Interest rate VaR

Total VaR

(In € million)

31 December 2020 Foreign exchange hedges

20

0

20

0

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

88

63

17

43

Equity swaps

4

4

0

0

Diversification effect

(25)

0

(35)

0

All financial instruments

87

67

2

43

31 December 2019 Foreign exchange hedges

41

0

41

1

Financing liabilities, financial assets (incl. 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

The increase in the total VaR compared to 31 December 2019 is mainly attribuable to the increase in Equity price VaR (€67 million in 2020; €35 million in 2019) due to high equity volatility in 2020. Regarding the Currency Var, the volatility of €/US$ was compensated by the fall in nominal value of foreign exchange hedges portfolio. 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 “– Note 37.1: Financial Risk Management” of 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

More than 5 years

(In € million)

31 December 2020 Non-derivative financial liabilities

(12,512)

(14,656)

(1,390)

(230)

(1,045)

(1,208)

(934)

(9,847)

Derivative financial liabilities

(3,166)

(1,869)

(638)

(537)

(605)

(75)

(10)

(4)

Total

(15,678)

(16,525)

(2,028)

(767)

(1,650)

(1,283)

(944)

(9,851)

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)

108

Airbus / Financial Statements 2020