Financial Statements 2023

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

The Company as lessee

Real estate leases The Company leases land and buildings mainly for its operational business warehouses including logistic facilities, offices, production halls and laboratories. The major leases are located in France, Germany, the US, Canada and China. As lease contracts are negotiated on an individual basis, lease terms contain a wide range of different terms and conditions. Leases are typically made for a fixed period of 3 ‑ 25 years and may include extension, termination and other options, which provide operational flexibility to the Company. Vehicle leases The Company leases cars for management and other functions. Vehicle leases typically run for an average period of three years and do not provide renewal options. Other leases The Company also leases IT equipment, machinery and other equipment that combined are insignificant to the total leased asset portfolio. Off ‑ Balance Sheet Commitments Commitments related to property, plant and equipment comprise contractual commitments for future capital expenditures and contractual commitments for purchases of “Land, leasehold improvements and buildings including buildings on land owned by others” (€1,345 million as of 31 December 2023, 2022: €1,144 million).

The Company leases mainly real estate assets, cars and equipment (such as land, warehouses, storage facilities and offices). Short ‑ term leases and leases of low ‑ value assets refer mainly to IT equipment ( e.g. printers, laptops and mobile phones) and other equipment. The Company incurred interest expense on lease liabilities of €37 million. The expense in relation to short ‑ term and low ‑ value assets is insignificant. There are no significant variable lease payments included in the Company’s lease arrangements. The discount rate used to determine the right ‑ of ‑ use asset and the lease liability for each country and leased asset is calculated based on the incremental borrowing rate at inception of the lease. The Company calculated the rate applicable to each lease contract on the basis of the lease duration. The maturity analysis of lease liabilities, based on contractual undiscounted cash flows is shown in “– Note 37.1: Financial Risk Management”.

Other Investments and Other Long ‑ Term Financial Assets

21.

31 December

2

2023

(In € million)

2022

Other investments

2,798

2,641

Other long ‑ term financial assets

1,921

1,549

Total non ‑ current other investments and other long ‑ term financial assets

4,719

4,190

Current portion of other long ‑ term financial assets

795

665

Total

5,514

4,855

Other long ‑ term financial assets and the current portion of other long ‑ term financial assets include other loans in the amount of €2,601 million as of 31 December 2023 (2022: €2,129 million), and the sales financing activities in the form of finance lease receivables and loans from aircraft financing. The increase is mainly reflecting additional loans in Airbus bank.

Other investments mainly comprise the Company’s participations and include the remaining investment in Dassault Aviation (9.90%, 2022: 9.90%) amounting to €1,483 million at 31 December 2023 (2022: €1,309 million).

43

Airbus

Financial Statements 2023