Financial Statements 2023

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

Trade Liabilities

Trade (2022: €13,261 million) increased by €+1,062 million, mainly driven by higher volume in Airbus due to ramp ‑ up. As of 31 December 2023, trade liabilities amounting to €87 million (2022: €86 million) will mature after more than one year. Similar to previous years, the Company has supported its suppliers concerning supply chain financing arrangements. As of 31 December 2023, these arrangements have no impact in the liabilities of €14,323 million

Consolidated Financial Statements. The range of payment due dates is not impacted by the supplier finance arrangements. The Company evaluates such suppliers’ early payment arrangements with a financing third party against a number of indicators to assess whether the payable continues to hold the characteristics of a trade payable or should be classified as borrowings; these indicators include whether the payment terms exceed customary payment terms in the industry. As of 31 December 2023, the payables subject to supplier financing arrangements do not meet the criteria to be reclassified as borrowings.

23.

Inventories

31 December 2023

31 December 2022

Write ‑ down Net book value

Write ‑ down Net book value

Gross amount

(In € million)

Gross amount

Raw materials and manufacturing supplies

5,025

(739)

4,286

4,387

(643)

3,744

Work in progress

20,648

(1,091)

19,558

20,484

(1,229)

19,255

Finished goods and parts for resale

5,169

(1,273)

3,896

5,218

(1,060)

4,158

Advance payments to suppliers

6,061

(60)

6,001

5,114

(69)

5,045

Total

36,904

(3,163)

33,741

35,203

(3,001)

32,202

In 2023, write ‑ downs of inventories in the amount of €-782 million (2022: €-394 million) are recognised in cost of sales, whereas reversal of write ‑ downs amounts to €149 million (2022: €243 million). At 31 December 2023, €18,973 million of work in progress and €3,883 million of finished goods and parts for resale were carried at net realisable value. Inventories recognised as an expense during the period amount to €41,644 million (2022: €35,710 million).

Inventories of €33,741 million (2022: €32,202 million) increased by €+1,539 million. This is mostly driven by work in progress, raw materials and manufacturing supplies resulting in inventory build up to support the ramp ‑ up, partially offset by less finished goods reflecting higher deliveries. Advance payments made to suppliers increased by €+956 million to €6,001 million (2022: 5,045 million) largely due to payments made to suppliers to support Airbus’ ramp ‑ up and de ‑ risk the supply chain.

2

24.

Provisions, Contingent Assets and Contingent Liabilities

Provisions — The determination of provisions, e.g. for onerous contracts, program ‑ related provisions, warranty costs, restructuring measures and legal proceedings is based on best estimates.

In general, in the aerospace sector, the contractual and technical parameters considered for provision calculations are complex. Hence uncertainty exists with regard to the timing and amounts of expenses to be taken into account.

31 December

2023

(In € million)

2022

Provisions for pensions

2,715

3,509

Other provisions

7,113

7,514

Total

9,828

11,023

thereof non ‑ current portion

5,667

6,896

thereof current portion

4,161

4,127

45

Airbus

Financial Statements 2023