Financial Statements 2023

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

As of 31 December 2023, provisions for pensions amount to €2.7 billion (2022: €3.5 billion). The decrease mainly reflects the improved performance on plan assets and additional funding put in place in 2023 partly offset by the decrease of the discount rates in Germany, France, Canada and the UK (see “– Note 31: Post ‑ Employment Benefits”). As of 31 December 2023, a non ‑ current asset of €0.4 billion (2022: €0.6 billion) is accounted for to reflect the surplus in two pension funds in the UK, the Airbus Section of the participation in BAE Systems Pension Scheme and the Company UK Pension Scheme (see “– Note 26: Other Assets and Other Liabilities”).

The French pension reform signed into law in April 2023 and accounted for as a plan amendment did not have any material impact on the Company’s Consolidated Financial Statements. Other provisions decreased mainly due to the utilisation of provisions for onerous contracts related to the A400M and A220 programmes and the release and utilisation of compliance ‑ related provisions. This is partly offset by additional provisions related to the updates of certain space programmes (see “– Note 12: Revenue and Gross Margin”).

Movements in other provisions during the year were as follows:

Reclassification / Change in consolidated group

Balance at 31 December 2023

Increase from passage

Balance at 1 January 2023

Exchange differences

Used Released

of time Additions

(In € million)

Onerous contracts

1,808

(27)

0

527

(55)

(558)

(57)

1,638

Outstanding costs

1,374

(1)

(1)

562

0

(396)

(106)

1,432

Aircraft financing risks Obligation from services and maintenance agreements (1)

5

0

0

0

0

0

(3)

2

384

0

12

65

0

(72)

(88)

301

Warranties

397

(3)

2

148

0

(71)

(78)

395

Personnel ‑ related provisions (2)

743

(3)

5

453

4

(363)

(65)

774

Litigation and claims (3)

331

0

0

84

(5)

(124)

(183)

103

Asset retirement

147

0

5

5

0

0

(23)

134

Others risks and charges

2,325

1

(1)

889

(11)

(380)

(489)

2,334

Total

7,514

(31)

22

2,733

(69)

(1,964)

(1,092)

7,113

See “– Note 27: Sales Financing Transactions”. (1) See “– Note 30: Personnel ‑ Related Provisions”. (2) See “– Note 38: Litigation and Claims”. (3)

Provisions for onerous contracts in 2023 mainly include the utilisation and net presentation of the A400M programme losses against inventories and the reduction in the A220 programme. Personnel ‑ related provisions include restructuring provisions and other personnel charges. For more details, see “– Note 30: Personnel ‑ Related Provisions”. Provisions for litigation and claims decreased mainly due to the release of compliance ‑ related provisions for an amount of €0.1 billion. Contingent assets and contingent liabilities — The Company is exposed to technical and commercial contingent obligations due to the nature of its businesses. To mitigate this exposure, the Company has subscribed a Global Aviation

Insurance Programme (“GAP”). Information required under IAS 37 “Provisions, Contingent Assets and Contingent Liabilities” is not disclosed if the Company concludes that disclosure can be expected to prejudice seriously its position in a dispute with other parties. For other contingent liabilities, see “– Note 38: Litigation and Claims” and “– Note 12: Revenue and Gross Margin” (mainly A400M programme). Other commitments include contractual guarantees and performance bonds to certain customers as well as commitments for future capital expenditures and amounts which may be payable to commercial intermediaries if future sales materialise.

46

Airbus

Financial Statements 2023