Airbus // Universal Registration Document 2023

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

2.1 Operating and Financial Review

2.1.4.7 Interest Result Interest result reflects the net of interest income and expense arising from financial assets and liabilities, including the interest expense on refundable advances provided by European governments to finance R&D activities. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 16: Total Financial Result”. The Company recorded a net interest expense of € -25 million, as compared to € -232 million for 2022 and € -246 million for 2021. 2.1.4.8 Other Financial Result Other financial result includes the impact from the revaluation of financial instruments, the effect of foreign exchange valuation of monetary items and the unwinding of discounted provisions. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 16: Total Financial Result” and “– Note 25: Other Financial Assets and Other Financial Liabilities”. Other financial result changed from € -18 million for 2022 to € 191 million for 2023. In 2023, it mainly reflects a positive impact from the revaluation of certain equity investments. For 2022, other financial result changed from € -69 million for 2021 to € -18 million for 2022. It included a negative impact from the revaluation of financial instruments and a positive impact from the revaluation of certain equity investments.

2.1.4.9 Income Taxes Income tax expense was €-1,156 million for 2023 as compared to € -939 million for 2022, and corresponds to an effective income tax rate of 24%. The tax expense evolution was mainly driven by higher net valuation allowances, partially offset by an impairment reversal linked to a corporate reorganisation in Germany, and lower positive impacts from tax risk updates in 2023 as compared to 2022. For 2022, income tax expense was € -939 million as compared to € -853 million for 2021, and corresponds to an effective income tax rate of 19%. The higher tax expense was mainly driven by higher net valuation allowances and lower positive impacts from tax risk updates in 2022 as compared to 2021. Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 17: Income Taxes”. 2.1.4.10 Non-Controlling Interests For 2023, loss for the period attributable to non-controlling interests was € -176 million, as compared to loss of € -111 million for 2022. 2.1.4.11 Profit for the Period Attributable to Equity Owners of the Parent (Net Income) As a result of the factors discussed above, the Company recorded a net income of € 3,789 million for 2023, as compared to the net income of €4,247 million for 2022.

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2.1.4.12 Earnings per Share Basic earnings were € 4.80 per share in 2023, as compared to € 5.40 per share in 2022. The denominator used to calculate earnings per share was 788,720,779 shares (2022: 787,080,579), reflecting the weighted average number of shares outstanding during the year. In 2021, the Company reported basic earnings of € 5.36 per share, based on a denominator of 785,326,074 shares.

2023

2022

2021

Profit for the period attributable to equity owners of the parent (Net income)

€3,789 million

€ 4,247 million

€ 4,213 million

Weighted average number of ordinary shares

788,720,779

787,080,579

785,326,074

Basic earnings per share

€ 4.80

€ 5.40

€ 5.36

Diluted earnings were €4.80 per share in 2023, as compared to €5.39 per share in 2022. The denominator used to calculate diluted earnings per share was 789,760,599 (2022: 787,753,485). In 2023, LTIP 2023 plan has been excluded from the calculation because of its antidilutive effect.

2023

2022

2021

Profit for the period attributable to equity owners of the parent (Net income), adjusted for diluted calculation

€3,789 million

€ 4,247 million

€ 4,213 million

Weighted average number of ordinary shares (diluted)

789,760,599

787,753,485

785,761,995

Diluted earnings per share

€ 4.80

€ 5.39

€ 5.36

For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 18: Earnings per Share”.

181 Airbus Annual Report

Universal Registration Document 2023