AIRBUS - 2020 Financial Statement

2. Notes to the IFRS Consolidated Financial Statements / 2.5 Operational Assets and Liabilities

NET BOOK VALUE

Balance at 31 December 2020

Balance at 1 January 2020

Changes in consolidation

Exchange differences Additions

Amortisation / Impairment

scope Reclassification Disposals

(In € million)

Goodwill

13,019

(30)

10

0

0

0

0

12,999

Capitalised development costs

1,460

(9)

101

0

0

(72)

(222)

1,258

Other intangible assets

2,112

(128)

199

1

(13)

3

(232)

1,942

Total

16,591

(167)

310

1

(13)

(69)

(454)

16,199

Balance at 1 January 2019

Changes in consolidation

Balance at 31 December 2019

Exchange differences Additions

Amortisation / Impairment

scope Reclassification (1) Disposals (1)

(In € million)

Goodwill

13,039

11

0

0

4

(35)

0

13,019

Capitalised development costs

1,582

8

134

13

49

7

(333)

1,460

Other intangible assets

2,105

32

275

42

(104)

(8)

(230)

2,112

Total

16,726

51

409

55

(51)

(36)

(563)

16,591

(1) Includes intangible assets from entities disposed (see “– Note 8: Acquisitions and Disposals”).

Intangible assets decreased by € -392 million to €16,199 million (2019: €16,591 million). Intangible assets mainly relate to goodwill of €12,999 million (2019: €13,019 million).

Capitalised Development Costs The Company has capitalised development costs in the amount of €1,258 million as of 31 December 2020 (€1,460 million as of 31 December 2019), mainly for Airbus programmes (€754 million). Impairment Tests

2

Each year the Company assesses whether there is an indication that a non-financial asset or a cash generating unit (“CGU”) to which the asset belongs may be impaired. In addition, intangible assets with an indefinite useful life, intangible assets not yet available for use and goodwill are tested for impairment annually, irrespective of whether there is any indication for impairment. An impairment loss is recognised in the amount by which the asset’s carrying amount exceeds its recoverable amount. For the purpose of impairment testing, any goodwill is allocated to the CGU or group of CGUs in a way that reflects the way goodwill is monitored for internal management purposes. The discounted cash f low method is used to determine the recoverable amount of a CGU or the group of CGUs to which goodwill is allocated. The discounted cash flow method is particularly sensitive to the selected discount rates and estimates of future cash flows by management. Discount rates are based on the weighted average cost of capital (“WACC”)

for the groups of cash-generating units. The discount rates are calculated based on a risk-free rate of interest and a market risk premium. In addition, the discount rates reflect the current market assessment of the risks specific to each group of CGUs by taking into account specific peer group information on beta factors, leverage and cost of debt. Consequently, slight changes to these elements can materially affect the resulting valuation and therefore the amount of a potential impairment charge. These estimates are influenced by several assumptions including the growth rate of CGUs where a rate of 1% has been applied, the increase of deliveries in the coming years, the availability and composition of future defence and institutional budgets, and foreign exchange fluctuations or implications arising from the volatility of capital markets. Cash flow projections take into account past experience and represent management’s best estimate of future developments.

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Airbus / Financial Statements 2020