Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements 2.7 Capital Structure and Financial Instruments

On 19 April 2023, the AGM authorised the Board of Directors for an 18 ‑ month period to repurchase up to 10% of the Company’s issued share capital at a price per share not less than the nominal value and not more than the higher of the price of the last independent trade and the highest current

independent bid on the trading venues of the regulated market of the country in which the purchase is carried out. Furthermore, the AGM authorised the Board of Directors to determine on a case ‑ by ‑ case basis the share repurchase programmes to be implemented by the Company, if any.

34.2 Non ‑ Controlling Interests The non ‑ controlling interests (“NCI”) from non ‑ wholly owned subsidiaries increased to €35 million as of 31 December 2023 (2022: €32 million). These NCI do not have a material interest in the Company’s activities and cash flows.

35.

Capital Management

The Company seeks to maintain a strong financial profile to safeguard its going concern, financial flexibility as well as shareholders’, credit rating agencies’, credit investors’ and other stakeholders’ confidence in the Company. Consequently, operating liquidity is of great importance. As part of its capital management, it is one of the Company’s objectives to maintain a strong credit rating by institutional rating agencies. This enables the Company to contain its cost of capital which positively impacts its stakeholder value (entity value). Next to other non ‑ financial parameters, the credit rating is based on financial indicators such as cash flow, profitability, leverage ratios and liquidity ratios. The Company monitors these ratios to keep them in a range compatible with a strong rating.

Long ‑ term rating

Short ‑ term rating

Rating agency

Outlook

A ‑ 1

Standard and Poor’s

A

Stable

Moody’s Investors Services

A2

Stable

P1

Fitch Rating (unsolicited)

A-

Stable

F1

The stand ‑ alone rating reflects the Company’s strong backlog providing revenue visibility, dominant market position in the single ‑ aisle market, operating performance and overall its strong positioning to benefit from the recovery in air travel demand. It also reflects Airbus’ exceptional liquidity, solid balance sheet as well as its prudent financial policy. Finally, it reflects the management’s focus on programme execution, profitability and cash generation improvement. In accordance with the Company’s conservative financial policy, a strong rating is key to maintain a wide array of funding sources at competitive conditions, to have broad access to long ‑ term hedging and to strengthen the Company’s position as a financially sound counterparty for its customers and suppliers. Every year, the Company constructs a five ‑ year plan used to assess its financial flexibility at current ratings and a value creation ambition. It is composed of (i) EBIT and (ii) Free Cash Flow, which is defined as Cash provided by operating activities

and Cash used for investing activities less Change of securities, Contribution to plan assets for pensions, realised Treasury swaps and bank activities. The Company uses the WACC to determine the Net Present Value (“NPV”), which is used for any investment decision. The Company also monitors the level of dividends paid to its shareholders. The Company generally satisfies its obligations arising from ESOPs and Share Incentive Plans (“SIPs”) by issuing new shares. In order to avoid any dilution of its current shareholders out of LTIPs , the Company performs share buybacks to meet its obligations to its employees, following the decisions of the Board of Directors and approval of the AGM. Apart from this purpose, the Company generally does not trade with treasury shares. The Company complies with the capital requirements under applicable law and its Articles of Association.

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Airbus

Financial Statements 2023