Financial Statements 2023

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We discussed and evaluated the specific assessment with the board of directors exercising professional judgment and maintaining professional skepticism. We considered whether the board of directors’ going concern assessment, based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, contains all relevant events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Based on our procedures performed, we did not identify material uncertainties about going concern for the next twelve months. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Our key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements. We have communicated the key audit matters to the board of directors. The key audit matters are not a comprehensive reflection of all matters discussed. Revenue recognition (Reference is made to the disclosures on Note 4 Material accounting policy information, Note 5 Key Estimates and Judgements, Note 11 Segment Information and Note 12 Revenues and Gross Margin of the financial statements) Risk The Group revenue recognition is complex due to its wide range of activities (including the sale of commercial aircraft and helicopters, sale of military aircraft and helicopters, sale of space systems, and services), its various types of contracts including non-standard clauses and the duration of some contracts including long-term development activities. In comparison with previous year, the nature of our key audit matters did not change.

When identifying and assessing fraud risks, we presume that there are risks of fraud in revenue recognition relating to the estimates of margin at completion and cut-off of costs incurred related to over time contracts (notably for A400M development and space systems contracts) as well as the cut-off risk on deliveries related to point in time contracts. Furthermore, recognition of revenue includes significant management judgments and estimates including whether the contracts contain multiple performance obligations which should be accounted for separately and the determination of the most appropriate method for revenue recognition of these performance obligations. Recognition of revenues comprises the identification of potential variable considerations reducing the consideration received, allocation of these considerations to the different performance obligations and assessing if the performance obligations are satisfied over time or at a point in time.

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Airbus

Financial Statements 2023