Financial Statements 2023

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

Liquidity Risk The Company’s policy is to maintain sufficient cash and cash equivalents at any time to meet its present and future commitments as they fall due. It manages its liquidity by holding adequate volumes of liquid assets and maintains a committed revolving credit facility, in addition to the cash inflow generated by its operating business. The Company continues to keep within its asset portfolio the focus on low counterparty risk. In addition, it maintains a set of other funding sources, and accordingly may raise loans from commercial banks and Development Finance Institutions and issue bonds, notes and commercial papers or enter into security lending agreements. Adverse changes in the capital markets could increase its funding costs and limit its financial flexibility. For further information relating to Commercial Paper Programme (see “–

Note 15.4: Financing Liabilities” of the Company Financial Statements). In particular, Airbus signed on 5 July 2022 a €8 billion Sustainability Linked Revolving Syndicated Credit Facility in order to refinance its €6 billion existing facility signed in 2020. Further, the management of the vast majority of the Company’s liquidity exposure is centralised by a daily cash concentration process. This process enables it to manage its liquidity surplus as well as its liquidity requirements according to the actual needs of its subsidiaries. In addition, management monitors the Company’s liquidity reserve as well as the expected cash flows from its operations.

The contractual maturities of the Company financial liabilities, based on undiscounted cash flows and including interest payments, if applicable, are as follows:

Carrying amount

Contractual cash flows < 1 year

1 year ‑ 2 years

2 years ‑ 3 years

3 years ‑ 4 years

4 years ‑ 5 years

More than 5 years

(In € million)

31 December 2023

(1)

Non ‑ derivative financial liabilities

(37,475)

(40,094)

(29,957)

(738)

(1,522)

(830)

(741)

(6,306)

Derivative financial liabilities

(5,292)

(6,388)

(2,200)

(1,294)

(926)

(1,051)

(56)

(861)

Total

(42,767)

(46,482)

(32,157)

(2,032)

(2,448)

(1,881)

(797)

(7,167)

31 December 2022

(1)

Non ‑ derivative financial liabilities

(43,258)

(46,785)

(35,553)

(1,021)

(740)

(1,524)

(856)

(7,091)

Derivative financial liabilities

(9,255)

(11,631)

(3,867)

(2,866)

(1,690)

(1,090)

(706)

(1,412)

Total

(52,513)

(58,416)

(39,420)

(3,887)

(2,430)

(2,614)

(1,562)

(8,503)

Current accounts Group companies are included in “Non ‑ derivative financial liabilities” and have a maturity less than one year. (1)

Credit Risk The Company is exposed to credit risk to the extent of non ‑ performance 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 2023, the trade receivables, neither past due nor impaired amount to €12 million (in 2022: €28 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 2023, an amount of €2 million of impairment gain on financial assets is recognised in Profit and Loss (2022: €5 million).

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Airbus

Financial Statements 2023