AIRBUS - 2020 Financial Statement

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

38.3 Potential Effect of Set-Off Rights on Recognised Financial Assets and Liabilities The Company reports all its financial assets and financial liabilities on a gross basis. With each derivative counterparty there are master netting agreements in place providing for the immediate close-out of all outstanding derivative transactions and payment of the net termination amount in the event a party to the agreement defaults or another defined termination event occurs. Furthermore, securities lending transactions are accounted for as collateralised borrowings. As a result, the securities pledged as collateral continue to be recognised on the balance sheet and the amount of cash received at the outset of the transaction is separately recognised as a financial liability. The following tables set out, on a counterparty specific basis, the potential effect of master netting agreements and collateralised borrowings on the Company’s Financial Position, separately for financial assets and financial liabilities that were subject to such agreements as of 31 December 2020 and 2019, respectively:

Related amounts not set off in Statement of Financial Position

Gross amounts

recognised set off in the Financial Statements

Net amounts presented in the Financial Statements

Gross amounts recognised

Cash collateral received

Financial instruments

Net amount

(In € million)

31 December 2020 Financial asset

3,879

0

3,879

(1,519)

(77)

2,283

Financial liabilities

2,192

0

2,192

(1,519)

0

673

31 December 2019 Financial asset

831

0

831

(789)

0

42

Financial liabilities

3,560

0

3,560

(789)

0

2,771

38.4 Notional Amounts of Derivative Financial Instruments The contract or notional amounts of derivative financial instruments shown below do not necessarily represent amounts exchanged by the parties and thus, are not necessarily a measure for the exposure of the Company through its use of derivatives. The notional amounts of foreign exchange derivative financial instruments are as follows, specified by year of expected maturity:

Remaining period

1 year

2 years 3 years 4 years 5 years > 5 years

Total

(In € million)

31 December 2020 Net forward sales contracts

13,827 12,308 10,427

8,716

6,685 14,791

66,754

Foreign exchange options

0

0

0

0

0

0

0

Foreign exchange swap contracts

1,782

0

0

0

0

0

1,782

31 December 2019 Net forward sales contracts

23,543 18,108 16,959 11,656

6,450

1,632

78,348

Foreign exchange options

1,745

2,884

0

0

0

0

4,629

Foreign exchange swap contracts

4,054

0

0

0

0

0

4,054

The following table sets out the notional amount of foreign exchange hedges in place as of 31 December 2020 relating to the commercial activities of Airbus, and the average euro converted rates applicable to corresponding EBIT.

2021

2022

2023

2024

2025+

Total

(In $ million)

Total hedges

16,615

15,197

12,395

10,485

26,275

80,967

Forward rates €/US$

1.21

1.23

1.26

1.26

1.30

1.26

£/US$

1.37

1.37

1.42

N/A

N/A

1.37

In 2020 new hedge contracts of US$4.5 billion (2019: US$40.6 billion) were added at an average rate of 1.17 US$/€ (2019: 1.20 US$/€).

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Airbus / Financial Statements 2020