Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements 2.6 Employees Costs and Benefits

The figures shown in the table include the surplus in two pension funds in the UK, resulting from a defined benefit obligation and assets of €4,360 million and €4,733 million that have been accounted as a non ‑ current asset. In the figures shown in the table, amounts of €1,873 million and €1,712 million are included for the defined benefit obligation and plan assets for deferred compensation plans in Germany (2022: €1,715 million and €1,508 million). The past service cost included in the service cost amounts to

€-6 million and €-400 million as of 31 December 2023 and 2022, respectively. The employer contributions amount to €668 million and €6 million for other plan participants as of 31 December 2023 (2022: €595 million and €6 million respectively). Additionally, the Company considers liabilities for lump sum payments (one ‑ off payment or lump sum instalments) under the German P3 pension arrangement in the total amount of €194 million and €183 million as of 31 December 2023 and 2022, respectively.

The funding of the plans is as follows:

31 December

2023

2022

Plan assets

DBO

(In € million)

DBO Plan assets

Unfunded pension plans

368

0

873

0

Funded pension plans (partial)

16,222

(14,248)

14,831

(12,837)

Total

16,590 (14,248)

15,704 (12,837)

As of 31 December 2023, provisions for pensions decreased by €-794 million. It mainly reflects the actuarial gains related to the strong performance of assets of €533 million and the contributions to plan assets of €505 million. It is partly offset by the actuarial losses on pension obligations from financial assumptions of €334 million, driven by the decrease in the discount rates. 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. In 2023, employer contributions for retirement and deferred compensation plans amount to €668 million. This consists of: payments made to the pension and deferred compensation plans of the Company in Germany, UK and Canada of –

Contributions of approximately €500 million are expected to be made in 2024. The weighted average duration of the DBO for retirement plans and deferred compensation is 15 years at 31 December 2023 (31 December 2022: 15 years). €247 million (2022: €342 million), mainly relating to a Contractual Trust Arrangement in Germany of €171 million (2022: €171 million), the relief fund in Germany of €0 million (2022: €99 million) and the Company UK scheme of €57 million (2022: €57 million); payments made of €314 million (2022: €0 million) to partially fund the retirement indemnities provisions in France; – payments made to the participation in BAE Systems Pension Scheme in the UK of €107 million (2022: €254 million). –

Pension obligations by countries and type of beneficiaries

The split of the DBO for retirement plans and deferred compensation between active, deferred and pensioner members for the most significant plans is as follows:

Active

Deferred

Pensioner

Germany

45%

10%

45%

France

99%

0%

1%

UK

50%

20%

30%

Participation in BAE System Pension Scheme (Main Scheme)

37%

14%

49%

Canada

82%

2%

16%

56

Airbus

Financial Statements 2023