Airbus - Financial Statements 2022

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

37.

Net Cash

The net cash position provides financial flexibility to fund the Company’s operations, to react to business needs and risk profile and to return capital to the shareholders.

31 December

2022

2021

(In € million)

Cash and cash equivalents

15,823

14,572

Current securities

1,762

1,317

Non ‑ current securities

6,013

6,794

Gross cash position

23,598

22,683

Short ‑ term financing liabilities

(2,142)

(1,946)

Long ‑ term financing liabilities

(10,631)

(13,094)

(1)

Interest rate contracts

(1,394)

97

Total

9,431

7,740

(1) The Company has decided to refine the net cash definition to include interest rate contracts related to fair value hedges, which is also reflected in the 2022 balance.

The net cash position on 31 December 2022 amounted to €9,431 million (2021: €7,740 million), with a gross cash position of €23,598 million (2021: €22,683 million). Derivative instruments recognised on the Company’s Statement of Financial Position consist of (i) instruments that are entered into as hedges of the Company’s operating activities or interest result, and (ii) embedded foreign currency derivatives that arise from separating the foreign currency

component from certain operating contracts. Cash flows resulting from the settlement of these derivatives are therefore recorded as part of cash flow from operations. Similarly, financial assets and liabilities arising from customer financing activities and refundable advances from European Governments are considered part of operating activities and related cash flows are hence recognised as cash flows from operating activities.

37.1 Cash and Cash Equivalents

Cash and cash equivalents are composed of the following elements:

31 December

2022

2021

(In € million)

Bank account and petty cash

3,687

1,964

Short ‑ term securities (at fair value through profit or loss)

11,135

12,075

Short ‑ term securities (at fair value through OCI)

1,001

533

Total cash and cash equivalents

15,823

14,572

Only securities with a maturity of three months or less from the date of the acquisition, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, are recognised in cash equivalents. Cash and cash equivalents have increased by €+1.3 billion from €14.6 billion at 31 December 2021 to €15.8 billion at 31 December 2022. They include payments received in advance from certain customers and payments made to suppliers in anticipation.

The main variations are as follows: Cash provided by operating activities amounts to €+6.3 billion in 2022, mainly driven by a profit translated into cash, a positive phasing impact from contracts assets and liabilities reflecting higher advance payments and a positive impact from net payments made to suppliers in anticipation. It also reflects an increase in trade liabilities driven by higher volume and payment terms increase linked to certain agreements reached with suppliers. It is partly offset by the increase in inventory.

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