Financial Statements 2023

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

The Company uses its derivative instruments entirely for hedging purposes. As a result, the respective market risks of these hedging instruments are – depending on the hedges’ actual effectiveness – offset by corresponding opposite market risks of the underlying forecast transactions, assets or liabilities. Under IFRS 7, the underlying forecast transactions do not qualify as financial instruments and are therefore not included in the tables shown above. Accordingly, the VaR of the foreign exchange hedging portfolio in the amount of €911 million (2022: €1,535 million) cannot be considered as a risk indicator for the Company in the economic sense. Liquidity Risk The Company’s policy is to maintain sufficient cash and cash equivalents at any time to meet its present and future commitments as they fall due. It manages its liquidity by holding adequate volumes of liquid assets and maintains a committed revolving credit facility, in addition to the cash inflow generated by its operating business. The Company continues to keep the focus on low counterparty risk within its asset portfolio. In addition, it maintains a set of other funding sources,

and accordingly may raise loans from commercial banks and Development Finance Institutions and issue bonds, notes and commercial papers or enter into security lending agreements. Adverse changes in the capital markets could increase its funding costs and limit its financial flexibility. In particular, Airbus signed on 5 July 2022 a €8 billion Sustainability Linked Revolving Syndicated Credit Facility in order to refinance its €6 billion existing facility signed in 2020. Management considers the Company has sufficient resources to continue operating for at least 12 months and that there are no material uncertainties about the Company’s ability to continue as a going concern. Further, the management of the vast majority of the Company’s liquidity exposure is centralised by a daily cash concentration process. This process enables it to manage its liquidity surplus as well as its liquidity requirements according to the actual needs of its subsidiaries. In addition, management monitors the Company’s liquidity reserve as well as the expected cash flows from its operations.

The contractual maturities of the Company’s financial liabilities, based on undiscounted cash flows and including interest payments, if applicable, are as follows:

Contractual cash

1 year - 2 years

2 years - 3 years

3 years - 4 years

4 years - 5 years > 5 years

Carrying amount

flows < 1 year

(In € million)

31 December 2023

Non ‑ derivative financial liabilities

(28,593)

(30,889)

(18,205)

(1,234)

(1,855)

(1,183)

(1,107)

(7,303)

Derivative financial liabilities

(4,750)

(5,876)

(1,963)

(1,173)

(886)

(860)

(144)

(850)

Total

(33,343)

(36,765)

(20,168)

(2,407)

(2,741)

(2,043)

(1,251)

(8,153)

31 December 2022

2

Non ‑ derivative financial liabilities

(26,753)

(29,230)

(15,885)

(1,791)

(936)

(1,760)

(1,192)

(7,666)

Derivative financial liabilities

(9,613)

(10,861)

(3,538)

(2,647)

(1,610)

(1,118)

(537)

(1,411)

Total

(36,366) (40,091) (19,423)

(4,438)

(2,546)

(2,878)

(1,729)

(9,077)

Non ‑ derivative financial liabilities included in the table above comprise financing liabilities as presented in “– Note 37.2: Carrying Amounts and Fair Values of Financial Instruments”. Due to their specific nature, namely their risk ‑ sharing features and uncertainty about the repayment dates, the European Governments’ refundable advances, which amount to €-3,856 million at 31 December 2023 (€-3,857 million at 31 December 2022) are not included.

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Airbus

Financial Statements 2023