Financial Statements 2021

2. Notes to the IFRS Consolidated Financial Statements / 2.5 Operational Assets and Liabilities

Balance at 1 January 2020

Changes in consolidation scope

Balance at 31 December 2020

Exchange differences Additions

Reclassi- fication Disposals

Depreciation / Impairment (1)

(In € million)

Land, leasehold improvements and buildings, including buildings on land owned by others Technical equipment and machinery Other equipment, factory and office equipment

4,823

(37)

104

(7)

168

(44)

(326)

4,681

7,257

(127)

328

(3)

1,158

(36)

(1,509)

7,068

957

(13)

83

0

79

(73)

(222)

811

Construction in progress

2,714

(11)

1,008

2 (1,364)

(39)

0

2,310

Right-of-use assets

1,543

(57)

605

15

(23)

(33)

(246)

1,804

Total

17,294

(245)

2,128

7

18

(225)

(2,303)

16,674

(1) Accelerated depreciation previously included in onerous contract provision has been offset with the release of the provision in the presentation of the Consolidated Statement of Cash Flows for the year ended 2020.

Property, plant and equipment decreased by €-138 million to €16,536 million (2020: €16,674 million). Property, plant and equipment include right-of-use assets for an amount of €1,698 million as of 31 December 2021 (2020: €1,804 million). Based on management’s best estimate, there is no impact on the useful life of Property, plant and equipment resulting from the Company’s journey towards sustainable aerospace. For details on assets related to lease arrangements on sales financing, see “– Note 27: Sales Financing Transactions”.

PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHICAL AREAS

31 December

2021

2020

(In € million)

7,570

7,736

France

4,185

4,350

Germany

1,604

1,615

UK

2

1,273

1,350

Spain

Other countries

1,904

1,623

Total

16,536

16,674

The Company as lessee The Company leases mainly real estate assets, cars and equipment (such as land, warehouses, storage facilities and offices). Short-term leases and leases of low-value assets refer mainly to IT equipment ( e.g. printers, laptops and mobile phones) and other equipment. The Company incurred interest expense on lease liabilities of €22 million. The expense in relation to short-term and low-value assets is insignificant. There are no significant variable lease payments included in the Company’s lease arrangements. The discount rate used to determine the right-of-use asset and the lease liability for each country and leased asset is calculated based on the incremental borrowing rate at inception of the lease. The Company calculated the rate applicable to each lease contract on the basis of the lease duration.

The maturity analysis of lease liabilities, based on contractual undiscounted cash flows is shown in “– Note 37.1: Financial Risk Management”. Real estate leases The Company leases land and buildings mainly for its operational business warehouses including logistic facilities, of fices, production halls and laboratories. The major leases are located in France, Germany, the US, Canada and China. As lease contracts are negotiated on an individual basis, lease terms contain a wide range of different terms and conditions. Leases are typically made for a fixed period of 3-25 years and may include extension, termination and other options, which provide operational flexibility to the Company. Vehicle leases The Company leases cars for management and other functions. Vehicle leases typically run for an average period of three years and do not provide renewal options.

37

Airbus / Financial Statements 2021