Financial Statements 2021

2. Notes to the IFRS Consolidated Financial Statements / 2.7 Capital Structure and Financial Instruments

37.3 Potential Effect of Set-Off Rights on Recognised Financial Assets and Liabilities The Company reports all its financial assets and financial liabilities on a gross basis. With each derivative counterparty there are master netting agreements in place providing for the immediate close-out of all outstanding derivative transactions and payment of the net termination amount in the event a party to the agreement defaults or another defined termination event occurs. Furthermore, securities lending transactions are accounted for as collateralised borrowings. As a result, the securities pledged as collateral continue to be recognised on the balance sheet and the amount of cash received at the outset of the transaction is separately recognised as a financial liability. The following tables set out, on a counterparty specific basis, the potential effect of master netting agreements and collateralised borrowings on the Company’s Financial Position, separately for financial assets and financial liabilities that were subject to such agreements as of 31 December 2021 and 2020, respectively:

Related amounts not set off in Statement of Financial Position

Gross amounts

recognised set off in the Financial Statements

Net amounts presented in the Financial Statements

Gross amounts recognised

Cash collateral received

Financial instruments

Net amount

(In € million)

31 December 2021 Financial asset

802

0

802

(788)

0

14

Financial liabilities

4,156

0

4,156

(788)

0

3,368

31 December 2020 Financial asset

3,879

0

3,879

(1,519)

(77)

2,283

Financial liabilities

2,192

0

2,192

(1,519)

0

673

37.4 Notional Amounts of Derivative Financial Instruments The contract or notional amounts of derivative financial instruments shown below do not necessarily represent amounts exchanged by the parties and thus, are not necessarily a measure for the exposure of the Company through its use of derivatives. The notional amounts of foreign exchange derivative financial instruments are as follows, specified by year of expected maturity:

Remaining period

1 year

2 years 3 years 4 years 5 years > 5 years

Total

(In € million)

31 December 2021 Net forward and swap contracts

21,225 17,923 17,102 10,899

8,161

7,233

82,543

Foreign exchange options

0

0

0

0

0

0

0

31 December 2020 Net forward sales contracts

15,609 12,308 10,427

8,716

6,685 14,791

68,536

Foreign exchange options

0

0

0

0

0

0

0

The following table sets out the notional amount of foreign exchange hedges in place as of 31 December 2021 relating to the commercial activities of Airbus, and the average euro converted rates applicable to corresponding EBIT.

2022

2023

2024

2025

2026+

Total

(In $ million)

Total hedges

21,559

19,318

18,530

11,833

17,100

88,340

Forward rates €/US$

1.22

1.23

1.24

1.26

1.32

1.25

£/US$

1.36

- (1)

- (1)

-

-

1.36

(1) Related volumes for the years 2023 and 2024 are remote.

In 2021 new hedge contracts of US$29.5 billion (2020: US$4.5 billion) were added at an average rate of 1.21 US$/€ (2020: 1.17 US$/€).

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Airbus / Financial Statements 2021