Financial Statements 2023

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

Reconciliation of liabilities arising from financing liabilities as of 31 December 2023 is as follows:

Non ‑ cash movements

Foreign exchange movements

Balance at 31 December 2023

Balance at 1 January 2023

Changes in scope

Others

(In € million)

Cash flows

Bonds and commercial papers

8,681

12

0

(75)

449

9,067

Liabilities to financial institutions

410

(59)

0

(2)

(25)

324

Loans

158

29

0

0

127

314

Finance lease liabilities

1,734

(267)

0

(23)

173

1,617

Others

1,790

480

0

(2)

1

2,269

Total

12,773

195

0

(102)

725

13,591

Reconciliation of liabilities arising from financing liabilities as of 31 December 2022 is as follows:

Non ‑ cash movements

Foreign exchange movements

Balance at 1 January 2022

Changes in scope

Balance at 31 December 2022

Others

(In € million)

Cash flows

Bonds and commercial papers

11,061

(989)

0

126

(1,517)

8,681

Liabilities to financial institutions

493

(83)

0

0

0

410

Loans

171

(63)

49

1

0

158

Finance lease liabilities

1,736

(262)

0

32

228

1,734

Others

1,579

220

0

(9)

0

1,790

Total

15,040

(1,177)

49

150

(1,289)

12,773

2

37.

Financial Instruments

37.1 Financial Risk Management

By the nature of its activities, the Company is exposed to a variety of financial risks: (i) market risks, in particular foreign exchange risk, but also interest rate risk, equity price risk and commodity price risk, (ii) liquidity risk and (iii) credit risk. The Company’s overall financial risk management activities focus on mitigating unpredictable financial market risks and their potential adverse effects on the Company’s operational and financial performance. The financial risk management of the Company is generally carried out by the Treasury department of the Company under Market Risk Foreign exchange risk — Foreign exchange risk arises when future commercial transactions or firm commitments, recognised monetary assets and liabilities and net investments

policies approved by the Board of Directors or by the Chief Financial Officer. The identification, evaluation and hedging of the financial risks is in the joint responsibility of several established specific committees such as the Foreign Exchange Committee and the Asset Liability Management Committee, including the Company business segments. The Company uses financial derivatives solely for risk mitigating purposes (“hedging”) and applies hedge accounting for a significant portion of its hedging portfolio.

in foreign operations are denominated in a currency that is not the entity’s functional currency.

73

Airbus

Financial Statements 2023