Financial Statements 2023

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

36.

Net Cash

The net cash is comprised of the following elements:

31 December

2023

(In € million)

2022

Cash and cash equivalents

16,469

15,823

Current securities

1,301

1,762

Non ‑ current securities

7,508

6,013

Gross cash position

25,278

23,598

Short ‑ term financing liabilities

(3,389)

(2,142)

Long ‑ term financing liabilities

(10,202)

(10,631)

(1)

Interest rate contracts

(961)

(1,394)

Total

10,726

9,431

The Company has decided to refine the net cash definition to include interest rate contracts related to fair value hedges, which is also reflected in the 2022 balance. (1)

The net cash position on 31 December 2023 amounted to €10,726 million (2022: €9,431 million), with a gross cash position of €25,278 million (2022: €23,598 million). Derivative instruments recognised on the Company’s Statement of Financial Position consist of (i) instruments that are entered into as hedges of the Company’s operating activities or interest result, and (ii) embedded foreign currency derivatives that arise from separating the foreign currency

component from certain operating contracts. Cash flows resulting from the settlement of these derivatives are therefore recorded as part of cash flow from operations. Similarly, financial assets and liabilities arising from customer financing activities and refundable advances from European Governments are considered part of operating activities and related cash flows are hence recognised as cash flows from operating activities.

36.1 Cash and Cash Equivalents

Cash and cash equivalents are composed of the following elements:

2

31 December

2023

(In € million)

2022

Bank account and petty cash

3,050

3,687

Short ‑ term securities (at fair value through profit or loss)

12,409

11,135

Short ‑ term securities (at fair value through OCI)

1,010

1,001

Total cash and cash equivalents

16,469

15,823

Only securities with a maturity of three months or less from the date of the acquisition, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, are recognised in cash equivalents. Cash and cash equivalents have increased by €+0.7 billion from €15.8 billion at 31 December 2022 to €16.5 billion at 31 December 2023. They include payments received in advance from certain customers and payments made to suppliers in anticipation.

The main variations are as follows: Cash provided by operating activities amounts to €+6.3 billion in 2023, primarily driven by a profit translated into cash and a positive impact from working capital. The latter is driven by larger contract liabilities reflecting higher advance payments including significant and anticipated pre ‑ delivery payments from certain customers, partly offset by increase in inventory and a net negative impact from payments made to suppliers in anticipation.

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Airbus

Financial Statements 2023