Airbus // Universal Registration Document 2023

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

Going concern and associated liquidity measures. As of 31 December 2023, the Company had a net cash position of € 10.7 billion with a total liquidity of € 33.3 billion, before deducting short-term financing liabilities. As of 31 December 2023, management considers the Company has sufficient resources to continue operating for at least 12 months and that there are no material uncertainties about the Company’s ability to continue as a going concern. For further information on liquidity, see “– 2.1.6 Liquidity and Capital Resources”. Litigation. For information, see “– Information on the Company’s Activities – 1.1.7 Legal and Arbitration Proceedings” and “Notes to the IFRS Consolidated Financial Statements – Note 24: Provisions, Contingent Assets and Contingent Liabilities”. 2.1.1.4 Current Trends As the basis for its 2024 guidance, the Company assumes no additional disruptions to the world economy, air traffic, the supply chain, the Company’s internal operations, and its ability to deliver products and services. The Company’s 2024 guidance is before M&A. On that basis, the Company targets to achieve in 2024: around 800 commercial aircraft deliveries; EBIT Adjusted between € 6.5 billion and € 7.0 billion; and Free Cash Flow before Customer Financing (1) of around € 4.0 billion. This guidance has been prepared on the basis of certain assumptions, including the principal assumptions as set

out below. The principal assumptions within the Company’s control are as follows: (a) underlying commercial aircraft deliveries are based on existing orders. Revenues from other activities are also based on existing orders and may include estimates based on relevant market forecasts; (b) no significant interruption in operational performance or programme execution; (c) no disruption in or change to the development of products or other development projects; and (d) no material change to the Company’s existing capital structure. The principal assumptions outside the Company’s control are as follows: (a) no material change in general trading conditions, geopolitical stability, military tensions, economic conditions, competitive environment or levels of demand which would materially affect the Company’s business; (b) the Company’s internal operations do not suffer further disruptions or from external interruptions; (c) suppliers will meet their delivery commitments and ensure maturity, availability and in-service performance; (d) no material change in the ability or willingness of our customers to meet their contractual obligations, including payment obligations to the Company; (e) no changes in the legislative or regulatory environment which could have a material effect on the Company; and (f) no adverse outcome to any material litigation or investigation. This guidance has been prepared on a basis consistent with the accounting policies adopted by the Company and is comparable with the Company’s historical financial information.

2.1.2 Material Accounting Considerations, Policies and Estimates The Company’s material accounting considerations, policies and estimates are described in the Notes to the IFRS Consolidated Financial Statements. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 4: Material Accounting Policies”, “– Note 5: Key Estimates and Judgements” and “– Note 6: Change in Accounting Policies and Disclosures”. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 4: Material Accounting Policies” and “– Note 19: Intangible Assets”.

2.1.2.3 Impairment of Long-Life Assets, Work in Progress and Finished Aircraft In testing long-life assets such as jigs and tools and capitalised development costs for impairment, the Company makes estimates on the number and timing of aircraft units to be delivered in the future also considering potential impacts from climate change, the margin of these aircraft, and the discount rate associated with the aircraft programme. For aircraft that may need to be remarketed, the impairment of work in progress and finished aircraft is assessed based on an estimation of the future selling price and associated remarketing costs. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 4: Material Accounting Policies”, “– Note 3: Climate impacts”, “– Note 19: Intangible Assets” and “– Note 23: Inventories”.

2.1.2.1 Scope of and Changes in Consolidation

For further information on the scope of and changes in consolidation as well as acquisitions and disposals of interests in business, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 7: Scope of Consolidation” and “– Note 8: Acquisitions and Disposals”. 2.1.2.2 Capitalised Development Costs Pursuant to the application of IAS 38 “Intangible Assets”, the Company assesses whether product-related development costs qualify for capitalisation as internally generated intangible assets. Criteria for capitalisation are strictly applied. All development costs not meeting the IAS 38 criteria are expensed as incurred in the consolidated income statement.

(1) The Company has decided to update the definition of the Alternative Performance Measure Free Cash Flow in line with market practices to better reflect the underlying cash generation performance of its operations. Going forward, Mergers and Acquisitions transactions will be excluded from this definition. This applies from 1 January 2024 onwards and the 2024 Guidance is issued on that basis.

172 Airbus Annual Report

Universal Registration Document 2023