Financial Statements 2023

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

The operative planning, is based on the following key assumptions which are relevant for all CGUs: increase of expected future labour expenses of 4.5% for 2024 including an inflation rate of 4.5%; – future interest rates projected per geographical market, for the European Monetary Union, the UK and the US; – future exchange rate of 1.125 US$/€ for 2024 to convert in euro the portion of future US dollar which is not hedged (see – The planning takes into account both the current market conditions and Airbus’ production rate, and includes management’s best estimates of the progressive increase in aircraft deliveries over the operative planning period. – The period beyond the operative plan horizon was considered through long ‑ term projections and a terminal value with a perpetual growth rate of 2%, aligned with Airbus – The planning takes into account the evolution of programmes based upon the current backlog and an assessment of order intake for platforms and services. – Long ‑ term commercial assumptions in respect of market share, deliveries and market value are based on the latest helicopter market forecast. The global helicopter market is demonstrating continued signs of recovering towards pre ‑ COVID ‑ 19 levels, despite continued geopolitical instabilities and economic volatility. Over the next ten years, – Airbus Airbus Helicopters

“– Note 37: Financial Instruments”).

General economic data derived from external macroeconomic and financial studies have been used to derive the general key assumptions. In addition to these general planning assumptions, the following additional CGU specific assumptions, which represent management’s current best assessment as of the date of these Consolidated Financial Statements, have been applied.

SBTi commitments and the baseline for the WB2°C scenario. The carrying value and planned cash flows of the CGU Airbus are materially influenced due to the significant hedge portfolio. – Cash flows are discounted using a euro weighted pre ‑ tax WACC of 13.5% (2022: 14.1%). –

according to market forecasts, around 6,900 Civil & Parapublic helicopters and 6,800 Military helicopters are expected to be delivered globally. In the absence of long ‑ term financial reference, expected cash flows generated beyond the planning horizon are considered through a terminal value with a perpetual growth rate of 1%. – Cash flows are discounted using a euro weighted pre ‑ tax WACC of 12.4% (2022: 13.1%). –

Airbus Defence and Space

In the absence of long ‑ term financial reference, expected cash flows generated beyond the planning horizon are considered through a terminal value, with a perpetual growth rate of 1%. – Cash flows are discounted using a euro weighted pre ‑ tax WACC of 11.2% (2022: 11.5%). –

Overall the defence and space markets are expected to have growth during the period of the operative planning horizon. – Business growth is underpinned by growing defence and space opportunities. Underlying performance is improved by focusing on project delivery, cost control and efficiency. –

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Airbus

Financial Statements 2023