Financial Statements 2023

4. Notes to the IFRS Company Financial Statements 4.5 Capital Structure and Financial Instruments

Short ‑ term financing liabilities increased by €817 million to €817 million (2022: €0 million), mainly due to the EMTN 10 Years maturing in 2024. The Company can issue commercial papers under its €11 billion Negotiable European Commercial Paper (“NEuCP”) programme, its €4 billion Euro Commercial Paper (“ECP”) programme and its US$3 billion US Commercial Paper programme. As of 31 December 2023, there were no outstanding amounts under any of its Commercial Paper Programme.

Non ‑ cash movements

Balance at 31 December 2023

Foreign exchange movements

Fair value through profit or loss

Balance at 1 January

Others

(In € million)

2023 Cash flows

Bonds and commercial papers

7,903

0

449

(49)

12

8,315

Liabilities to financial institutions

0

213

0

0

0

213

Loans from Subsidiaries

0

0

0

0

0

0

Total

7,903

213

449

(49)

12

8,528

Non ‑ cash movements

Foreign exchange movements

Fair value through profit or loss

Balance at 31 December 2022

Balance at 1 January

Others

(In € million)

2022 Cash flows

Bonds and commercial papers

10,328

(978)

(1,517)

80

(10)

7,903

Liabilities to financial institutions

0

0

0

0

0

0

Loans from Subsidiaries

591

(591)

0

0

0

0

Total

10,919

(1,569)

(1,517)

80

(10)

7,903

16.

Information about Financial Instruments

16.1 Financial Risk Management

In the Income Statement, the results of the back ‑ to ‑ back hedge transactions, both realised and unrealised, are presented on a net basis as the Company acts as an agent for its subsidiaries. The Company’s overall financial risk management activities and their objectives are described in detail in “– Note 37.1: Financial Risk Management” of the Consolidated Financial Statements. Market Risk Foreign exchange risk — The Company manages a long ‒ term hedge portfolio with maturities of several years for its subsidiaries, mainly Airbus, and to a small extent for its joint ventures or associates. This hedge portfolio covers a large portion of Airbus’ firm commitments and highly probable forecast transactions. As explained above, owing to the Company’s back ‑ to ‑ back approach, its own exposure to foreign exchange risk is very limited.

The Company acts as an intermediary for its subsidiaries when they wish to enter into derivative contracts to hedge against foreign exchange risk or other market risks such as interest rate risk, commodity price risk or equity price risk. The Company’s practice is to set up a derivative contract with a subsidiary and at the same time enter into a back ‑ to ‑ back derivative transaction with a bank. Contracts with subsidiaries being thus mirrored (on a one ‑ to ‑ one basis) by contracts with banks, the Company’s net exposure is virtually zero. There are, however, a few derivative contracts the Company holds in order to hedge its own market risk exposure. As the Company’s back ‑ to ‑ back hedge contracts are entered into with different counterparties, their fair values are reflected separately in the statement of Financial Position and recognised as other financial assets and financial liabilities as disclosed in “– Note 11: Financial assets and liabilities” of the Company Financial Statements.

134

Airbus

Financial Statements 2023