Airbus - Financial Statements 2022

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

The operative planning, used for the impairment test, is based on the following key assumptions which are relevant for all CGUs: increase of expected future labour expenses of 6.5% for 2023 including an inflation rate of 3.5%; – future interest rates projected per geographical market, for the European Monetary Union, the UK and the US; – future exchange rate of 1.05 US$/€ for 2023 to convert in euro the portion of future US dollar which is not hedged (see “– Note 38: Financial Instruments”); – The planning takes into account both the current market condition and Airbus production rate, and includes management’s best estimates of the progressive increase in aircraft deliveries over the operative planning period. – In the absence of long ‑ term financial reference, expected cash flows generated beyond the planning horizon are considered through a terminal value. – The planning takes into account the evolution of programmes based upon the current backlog and an assessment of order intake for platforms and services. – In the absence of long ‑ term financial reference, expected cash flows generated beyond the planning horizon are considered through a terminal value. – Long ‑ term commercial assumptions in respect of market share, deliveries and market value are based on the latest – Airbus Airbus Helicopters

General economic data derived from external macroeconomic and financial studies have been used to derive the general key assumptions. The operative planning also takes into account expenses and investments the Company has identified to progress towards its decarbonisation ambition. In addition to these general planning assumptions, the following additional CGU specific assumptions, which represent management’s current best assessment as of the date of these Consolidated Financial Statements, have been applied.

The carrying value and planned cash flows of the CGU Airbus are materially influenced due to the significant hedge portfolio. – Cash flows are discounted using a euro weighted pre ‑ tax WACC of 14.1% (2021: 11%). –

helicopter market forecast. The market is expected to be resilient due to existing mission segment diversity however, it is expected to remain a challenging environment due to persistent economic uncertainties lengthening the sales cycle in particular in parapublic and military due to budget allocation postponement or reduction and delayed growth of emerging markets especially in Asia. Cash flows are discounted using a euro weighted pre ‑ tax WACC of 13.1% (2021: 9.3%). –

Airbus Defence and Space

In the absence of long ‑ term financial reference, expected cash flows generated beyond the planning horizon are considered through a terminal value. – Cash flows are discounted using a euro weighted pre ‑ tax WACC of 11.5% (2021: 8.3%). –

Overall the defence and space markets are expected to have a moderate growth during the period of the operative planning horizon. – Business growth is underpinned by growing defence opportunities. Underlying performance is improved by focusing on project delivery, cost control and efficiency. –

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