Airbus - Financial Statements 2022

4. Notes to the IFRS Company Financial Statements Capital Structure and Financial Instruments

Reconciliation of liabilities arising from financing liabilities:

Non ‑ cash movements

Foreign exchange movements

Balance at 31 December 2022

Balance at 1 January

Fair value through profit or loss

2022 Cash flows

Others

(In € million)

Bonds and commercial papers

10,328

(978)

(1,517)

80

(10)

7,903

Liabilities to financial institutions

0

0

0

0

0

0

Loans from Subsidiaries

591

(591)

0

0

0

0

Total

10,919

(1,569)

(1,517)

80

(10)

7,903

Non ‑ cash movements

Foreign exchange movements

Balance at 1 January

Fair value through profit or loss

Balance at 31 December 2021

(1)

2021 Cash flows

Others

(In € million)

Bonds and commercial papers

8,358

(1,078)

(46)

102

2,992

10,328

Liabilities to financial institutions

81

(82)

0

1

0

0

Loans from Subsidiairies

4,073

(233)

(279)

10

(2,979)

591

Total

12,512

(1,394)

(325)

113

14

10,919

(1) Due to the merge of Airbus Finance BV, the existing loans between the Company and the subsidiary have been acquired and cancelled and the bonds of Airbus Finance BV from third parties have also been acquired (see “– Note 11: Investments in Subsidiaries, Associates and Participations” of the Company Financial Statements).

17.

Information about Financial Instruments

17.1 Financial Risk Management

The Company acts as an intermediary for its subsidiaries when they wish to enter into derivative contracts to hedge against foreign exchange risk or other market risks such as interest rate risk, commodity price risk or equity price risk. The Company’s practice is to set up a derivative contract with a subsidiary and at the same time enter into a back ‑ to ‑ back derivative transaction with a bank. Contracts with subsidiaries being thus mirrored (on a one ‑ to ‑ one basis) by contracts with banks, the Company’s net exposure is virtually zero. There are, however, a few derivative contracts the Company holds in order to hedge its own market risk exposure. As the Company’s back ‑ to ‑ back hedge contracts are entered Market Risk Foreign exchange risk — The Company manages a long ‒ term hedge portfolio with maturities of several years for its subsidiaries, mainly Airbus, and to a small extent for its joint ventures or associates. This hedge portfolio covers a large

into with different counterparties, their fair values are reflected separately in the statement of Financial Position and recognised as other financial assets and financial liabilities as disclosed in “– Note 12: Financial assets and liabilities” of the Company Financial Statements. In the Income Statement, the results of the back ‑ to ‑ back hedge transactions, both realised and unrealised, are presented on a net basis as the Company acts as an agent for its subsidiaries. The Company’s overall financial risk management activities and their objectives are described in detail in “– Note 38.1: Financial Risk Management” of the Consolidated Financial Statements.

portion of Airbus’ firm commitments and highly probable forecast transactions. As explained above, owing to the Company’s back ‑ to ‑ back approach, its own exposure to foreign exchange risk is very limited.

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