Airbus - Financial Statements 2022

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

total VaR as well as the different risk ‑ factor specific VaR figures of this portfolio are measured and serve amongst other measures as a basis for the decisions of the Company’s Asset Liability Management Committee.

The Company uses VaR amongst other key figures in order to determine the riskiness of its financial instrument portfolio and in order to optimise the risk ‑ return ratio of its financial asset portfolio. Further, its investment policy defines a VaR limit for the total portfolio of cash, cash equivalents and securities. The

A summary of the VaR position of the Company financial instruments portfolio at 31 December 2022 and 2021 is as follows:

Equity price VaR

Currency VaR

Commodity price VaR

Interest rate VaR

Total VaR

(In € million)

31 December 2022

Foreign exchange hedges for forecast transactions or firm commitments Financing liabilities, financial assets (including cash, cash equivalents, securities and related hedges)

1,450

0

1,535

0

238

268

67

225

0

80

Finance lease receivables and liabilities, foreign currency trade payables and receivables

130

0

83

0

112

Commodity contracts

2

0

0

2

0

Equity swaps

2

2

0

0

0

Diversification effect

(584)

(1)

(472)

0

(139)

All financial instruments

1,268

68

1,371

2

291

31 December 2021

Foreign exchange hedges for forecast transactions or firm commitments Financing liabilities, financial assets (including cash, cash equivalents, securities and related hedges)

910

0

945

0

173

127

58

68

0

110

Finance lease receivables and liabilities, foreign currency trade payables and receivables

52

0

39

0

39

Commodity contracts

3

0

0

3

0

Equity swaps

5

0

0

0

0

Diversification effect

(162)

2

(125)

0

(169)

All financial instruments

935

60

927

3

153

As of 31 December 2022, the total VaR amounts to €1,268 million (2021: €935 million). The increase is mainly attributable to the currency and interest rate volatilities. The Company uses its derivative instruments entirely for hedging purposes. As a result, the respective market risks of these hedging instruments are – depending on the hedges’ actual effectiveness – offset by corresponding opposite market risks of the underlying forecast transactions, assets or liabilities. Under IFRS 7, the underlying forecast transactions do not qualify as financial instruments and are therefore not included in the tables shown above. Accordingly, the VaR of the foreign exchange hedging portfolio in the amount of €1,535 million (2021: €945 million) cannot be considered as a risk indicator for the Company in the economic sense.

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