Financial Statements 2021

4. Notes to the IFRS Company Financial Statements /

Credit Risk The Company is exposed to credit risk to the extent of non- per formance by its counterparts with regard to financial instruments or issuers of financial instruments for gross cash investments. However, it has policies in place to avoid concentrations of credit risk and to ensure that credit risk is limited. As far as central treasury activities are concerned, credit risk resulting from financial instruments is managed by the Company. In order to ensure sufficient diversification, a credit limit system is used. The Company monitors the performance of the individual financial instruments and the impact of market developments on their performance and takes appropriate action on foreseeable adverse development based on pre-defined procedures and escalation levels. Sales of products and services are made to customers after having conducted appropriate internal credit risk assessment. The booked amount of financial assets represents the maximum credit exposure. The credit quality of financial assets can be assessed by reference to external credit rating (if available) or internal assessment of customers’ creditworthiness by way of internal risk pricing methods. In 2021, the trade receivables, neither past due nor impaired amount to €19 million (in 2020: €492 million). The Company measures loss allowances at an amount that represents credit losses resulting from default events that are

possible within the next 12 months, unless the credit risk on a financial instrument has increased significantly since initial recognition, as described in “– Note 37.7: Impairment Losses” of the Consolidated Financial Statements. In 2021, an amount of € -1 million of impairment losses on financial assets is recognised in Profit and Loss (2020: €224 million). For further information relating to gross credit risk and impairment see “– Note 15.7: Impairment Losses”. Values of Financial Instruments Financial instruments —The Company’s financial assets mainly consist of cash, short to medium-term deposits and securities. The Company’s financial liabilities include intragroup liabilities, obligations towards financial institutions and issued bonds. The Company has the same classification and accounting policies as the Company. Please refer to “– Note 37.1: Financial Risk Management” of the Consolidated Financial Statements for more information. The Company classifies its financial assets in one of the following categories: (i) at fair value through OCI, (ii) at fair value through profit and loss and (iii) at amortised cost. Classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows. The Company assigns its financial instruments (excluding its at-cost investments, which are outside the scope of IFRS 9 “Financial Instruments”) into classes based on their category in the Statement of Financial Position. 15.2 Carrying Amounts and Fair

The following table presents the carrying amounts and fair values of financial instruments by class and by IFRS 9 measurement category as of 31 December 2021:

Financial instrument Total

Financial assets and liabilities at amortised cost

Fair value through profit or loss

Fair value through OCI

Amortised cost

Fair value

Book value

Fair value

(In € million)

Assets Other investments and long-term financial assets Equity investments

977

977

977

0 0 0

0

0

Loans

0 0

1,398 1,427

1,398

1,427

Trade receivables

19

19

19

19

Other financial assets

Derivative instruments

4,912

0 0

0

0

4,912

4,912

Current account Group companies

0 0

11,239 11,239

11,239 11,239

Securities

7,721

0

0

7,721

7,721

4

Cash and cash equivalents

12,075 17,964

533

537

537

13,145 13,145

Total

8,254

13,193 13,222 39,411 39,440

Liabilities Financing liabilities Bonds and commercial papers

0 0 0

0 0 0 0 0 0

10,328 11,145

10,328 11,145

Liabilities to financial institutions and others

0

0 0

0

0 0

Internal loans payable Other financial liabilities Derivative instruments

591

591

4,818

0

0

4,818

4,818

Current accounts Group companies

0

30,756 30,756

30,756 30,756

Total

4,818

41,675 41,901 46,493 46,719

107

Airbus / Financial Statements 2021