Financial Statements 2023

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

32.1 LTIP

The Company hedges the share price risk inherent in the cash ‑ settled LTIP units by entering into equity swaps where the reference price is based on the Airbus SE share price. To the extent that cash ‑ settled LTIP units are hedged, compensation expense recognised for these units will effectively reflect the reference price fixed under the equity swaps. In order to avoid any dilution of its current shareholders out of equity ‑ settled LTIP units, the Company used to perform share buybacks to meet its obligations to its employees, following the decisions of the Board of Directors and approval of the Annual General Meeting (“AGM”). In 2023, compensation expenses for LTIPs (incl. Equity Pool) including the effect of the equity swaps amounted to

€72 million (2022: €49 million), among which €22 million for cash ‑ settled plans (2022: €21 million) and €50 million for equity ‑ settled plans (2022: €28 million). As of 31 December 2023, provisions of €72 million (2022: €57 million) relating to LTIP units (cash ‑ settled) have been accounted for. The lifetime of the Performance Units as well as Performance Shares is contractually fixed (see the description of the respective tranche in the following table). For the units, the measurement is next to other market data, mainly affected by the share price as of the end of the reporting period (€139.78 as of 29 December 2023) and the lifetime of the units.

The fair value of units and shares granted in the frame of the LTIP 2023 plan is as follows:

Expected vesting date (In € per unit / share granted)

Fair value of Performance Shares

May 2027 – Performance Shares

141.80

60

Airbus

Financial Statements 2023