Financial Statements 2023

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

Funded status by countries

The funded status for retirement and deferred compensation plans can be allocated to the countries as follows:

Participation in BAE Systems Pension Scheme in the UK

Pension plans of the Company

(In € million)

Germany

France

UK Canada

Total

DBO

10,360

1,353

1,183

517

3,177

16,590

Plan assets

8,768

333

1,471

414

3,262

14,248

Balance at 31 December 2023

1,592

1,020

(288)

103

(85)

2,342

DBO

10,157

1,243

1,100

436

2,768

15,704

Plan assets

7,957

19

1,356

351

3,154

12,837

Balance at 31 December 2022

2,200

1,224

(256)

85

(386)

2,867

Contributions to defined contribution plans

Employer’s contribution to state and private pension plans, mainly in Germany and France, are to be considered as defined contribution plans. Contributions in 2023 amounted to €723 million (2022: €894 million).

32. Share ‑ based Payment Share ‑ based compensation — From 2016 to 2020, the Company operated a Performance Units and Performance Shares Plan . Performance Units qualify as a cash ‑ settled share ‑ based payment plan under IFRS 2 and Performance Shares qualify as an equity ‑ settled share ‑ based payment plan under IFRS 2 . Since 2021, the Company operates only a Performance Shares Plan. Plans granting Restricted Units, Performance Units and/or Performance Shares are also mentioned as “LTIP” in the following notes. Since 2018, the Company operates also exceptional grants of Performance and Restricted Units as well as Performance and Restricted Shares under an Equity Pool. Such exceptional grants are validated by specific resolutions from the Board of Directors and qualify as cash ‑ settled or equity ‑ settled share ‑ based payment plans under IFRS 2. Accounting principles and methodology are the ones applied for LTIP as described below. For cash ‑ settled plans, provisions for associated services received are measured at fair value by multiplying the number of units expected to vest with the fair value of one LTIP unit at the end of each reporting period, taking into account the extent

to which the employees have rendered service to date. Changes of the fair value are recognised as personnel expenses of the period, leading to a re ‑ measurement of the provision. The fair value of Performance Units is re ‑ measured at each closing date as far as they are not paid. For equity ‑ settled plans, compensation expense is measured at the grant date at the fair value by multiplying the number of shares expected to vest by the fair value of one LTIP share taking into account the extent to which the employees have rendered service to date. The compensation expense is accounting for over the vesting period of each LTIP equity ‑ settled plans. The fair value of each LTIP share (equity or cash ‑ settled plans) is determined using a forward pricing model and is based on publicly available risk ‑ free rate, volatility and dividend rate. Besides the equity ‑ settled plans described above, the Employee Share Ownership Plan (“ESOP”) is an additional equity ‑ settled share ‑ based payment plan. Under this plan, the Company offers its employees Airbus SE shares at fair value matched with a number of free shares based on a determining ratio. The fair value of shares provided is reflected as personnel expenses in the Company’s Consolidated Income Statement with a corresponding increase in equity.

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Airbus

Financial Statements 2023