Financial Statements 2023

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

Capitalised Development Costs

The Company has capitalised development costs in the amount of €1,706 million as of 31 December 2023 (€1,482 million as of 31 December 2022), for Airbus programmes (€880 million), Airbus

Defence and Space (€517 million) and Airbus Helicopters (€309 million).

Impairment Tests

Each year the Company assesses whether there is an indication that a non ‑ financial asset or a cash generating unit (“CGU”) to which the asset belongs may be impaired. In addition, intangible assets with an indefinite useful life, intangible assets not yet available for use and goodwill are tested for impairment annually, irrespective of whether there is any indication for impairment. An impairment loss is recognised in the amount by which the asset’s carrying amount exceeds its recoverable amount. For the purpose of impairment testing, any goodwill is allocated to the CGU or group of CGUs in a way that reflects the way goodwill is monitored for internal management purposes. The discounted cash flow method is used to determine the recoverable amount of a CGU or the group of CGUs to which goodwill is allocated. The discounted cash flow method is particularly sensitive to the selected discount rates and estimates of future cash flows by management. Discount rates are based on the weighted average cost of capital (“WACC”) for a CGU or the groups of CGUs. The discount rates are calculated based on a risk ‑ free rate of interest and a market risk premium. In addition, the discount rates reflect the current

market assessment of the risks specific to each group of CGUs by taking into account specific peer group information on beta factors, leverage and cost of debt. Consequently, slight changes to these elements can materially affect the resulting valuation and therefore the amount of a potential impairment charge. These estimates are influenced by several assumptions including the growth rate of CGUs used in the computation of the terminal value, the increase of deliveries in the coming years, the availability and composition of future defence and institutional budgets, and foreign exchange fluctuations or implications arising from the volatility of capital markets. Cash flow projections take into account past experience and represent management’s best estimate of future developments which align with the Company’s climate ‑ related commitments. The Company tested the intangible assets for which an indicator of impairment was identified. In particular, the Company tested the intangible assets associated with certain aircraft and space programmes and no material impairment was recorded.

As of 31 December 2023 and 2022, goodwill was allocated to CGUs or group of CGUs and is summarised in the following schedule:

Airbus Defence and

Consolidated Airbus

Airbus Helicopters

2

Airbus

Space Eliminations

(In € million)

Goodwill as of 31 December 2023

10,803

184

2,154

0

13,141

Goodwill as of 31 December 2022

10,816

199

2,150

0

13,165

The goodwill mainly relates to the creation of the Company in 2000 and the Airbus Combination in 2001. The annual impairment tests performed in 2023 led to no impairment charge. The Company performed sensitivity tests in order to confirm the recoverability of its long ‑ lived assets, and no reasonably possible changes in the main assumptions used would cause the value in use of the goodwill to fall below its carrying value.

General Assumptions Applied in the Planning Process

of the impact of climate ‑ related commitments over the long ‑ term horizon. It incorporates the strategic pathways (see “Note – 3. Climate impacts”) in its assumptions as well as investments to decarbonise mobile and stationary industrial operations.

The basis for determining the recoverable amount is the value in use of the CGUs. Cash flow projections used for the impairment testing are based on both the operative planning which represents the Company’s WB2°C scenario through embarking an array of investments and expenses, and management’s best estimate

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Airbus

Financial Statements 2023