Airbus - 2022 Universal Registration Document

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations / 2.1 Operating and Financial Review

2.1.4.7 Interest Result Interest result reflects the net of interest income and expense arising from financial assets and liabilities, including the interest expense on refundable advances provided by European governments to finance R&D activities. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 17: Total Financial Result”. The Company recorded a net interest expense of € -232 million, as compared to € -246 million for 2021 and € -271 million for 2020. 2.1.4.8 Other Financial Result Other financial result includes the impact from the revaluation of financial instruments, the effect of foreign exchange valuation of monetary items and the unwinding of discounted provisions. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 17: Total Financial Result” and “– Note 26: Other Financial Assets and Other Financial Liabilities”. Other financial result changed from € -69 million for 2021 to € -18 million for 2022. This is mainly driven by the revaluation of certain equity investments and a net positive impact from the revaluation of financial instruments partly offset by the negative impact from the foreign exchange valuation of monetary items. For 2021, other financial result changed from € -349 million for 2020 to € -69 million for 2021. This is driven by the positive impact from the revaluation of certain equity investments, compensated by a negative impact from the revaluation of financial instruments. In 2020, it included the European governments’ refundable advances impact related to the A350 programme. 2.1.4.9 Income Taxes Income tax expense was € -939 million for 2022 as compared to € -853 million for 2021, and corresponds to an effective income tax rate of 19%. The higher tax expense was mainly driven by higher net valuation allowances and lower positive impacts from tax risk updates in 2022 as compared to 2021.

For 2021, income tax expense was € -853 million as compared to € -39 million for 2020, and corresponds to an effective income tax rate of 17%. The higher tax expense was mainly driven by the income before tax in 2021 of € 5,027 million as compared to the loss before tax in 2020 of € -1,130 million, partly compensated by a net release of deferred tax asset impairments mainly due to an updated business outlook in 2021 in comparison to deferred tax impairments in 2020. Management will continue to assess its tax contingencies going forward, whose outcome could result in further financial impacts. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 18: Income Taxes”. 2.1.4.10 Non-Controlling Interests For 2022, loss for the period attributable to non-controlling interests was € -111 million, as compared to loss of € -39 million for 2021. 2.1.4.11 Profit for the Period Attributable to Equity Owners of the Parent (Net Income) As a result of the factors discussed above, the Company recorded a net income of € 4,247 million for 2022, as compared to the net income of €4,213 million for 2021. 2.1.4.12 Earnings per Share Basic earnings were €5.40 per share in 2022, as compared to € 5.36 per share in 2021. The denominator used to calculate earnings per share was 787,080,579 shares (2021: 785,326,074), reflecting the weighted average number of shares outstanding during the year. In 2020, the Company reported basic earnings of €-1.45 per share, based on a denominator of 783,178,191 shares.

2022

2021

2020

Profit (Loss) for the period attributable to equity owners of the parent (Net income)

€4,247 million

€4,213 million

€ (1,133) million

Weighted average number of ordinary shares

787,080,579

785,326,074

783,178,191

Basic earnings per share

€ 5.40

€ 5.36

€ (1.45)

172

Airbus / Universal Registration Document 2022