Financial Statements 2023

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

Fair Value Measurement Method The Company uses the following methods to measure fair values: Equity instruments — The fair values of listed equity instruments reflect quoted market prices. For non ‑ listed equity investments for which quoted market prices are not available, the Company determines the fair values using valuation methods such as net asset values, discounted cash flow method or a comparable valuation technique. Customer financing assets and other loans — The carrying amounts reflected in the annual accounts are used as a proxy for fair value. Contract assets, trade receivables and other receivables — The carrying amounts reflected in the annual accounts are used as reasonable estimates of fair value because of the relatively short period between the receivables’ origination and their maturity. Securities — The fair values of securities reflect their quoted market price at the end of the reporting period. Cash and cash equivalents — include cash in hand, cash in banks, checks, fixed deposits as well as commercial papers and money market funds. The carrying amounts reflected in the annual accounts are used as reasonable estimates of fair value because of the relatively short period between the origination of the instrument and its maturity or due date. The fair value of commercial papers is determined based on Level 2 input by discounting future cash flows using appropriate interest rates. The fair values of money market funds are determined by reference to their quoted market price. Derivatives — The fair values of derivative instruments reflect

quoted market prices, where available, but in most cases are determined using recognised valuation techniques such as option ‑ pricing models ( e.g. Black & Scholes model) and discounted cash flow models. The valuation is based on observable market data such as currency rates, currency forward rates, interest rates and yield curves, commodity forward prices as well as price and rate volatilities obtained from recognised vendors of market data. Furthermore, to the extent that these instruments are subject to master netting arrangements and similar agreements and managed on the basis of net credit exposure, their fair values reflect credit and debit value adjustments based on the net long or net short position that the Company has with each counterparty. Except for certain short ‑ term commodity contracts and derivatives presented in the Level 3 section above, derivative fair values are measured based on Level 2 input. Financing liabilities — The fair values disclosed for financing liabilities, other than those of issued bonds and commercial papers, are determined based on Level 2 input by discounting scheduled or expected cash flows using appropriate market interest rates. The fair values disclosed for the issued EMTN and US dollar bonds reflect public price quotations that qualify as Level 1 input. For issued commercial papers, the carrying amounts reflected in the annual accounts are used as reasonable estimates of fair value because of the relatively short period between the origination of these instruments and their maturity. Trade liabilities and current other financial liabilities — For the same reason as trade receivables, carrying amounts are used as reasonable fair value approximations for trade liabilities and current other financial liabilities.

The following interest rate curves are used in the determination of the fair value in respect of the derivative financial instruments as of 31 December 2023 and 2022:

2

31 December

2023

2023

2023

2022

2022

2022

€

US$

£

(Rate in %)

6 months

3.65

2.39

5.15

4.75

5.14

4.03

1 year

3.12

2.80

4.78

4.79

4.67

4.30

5 years

2.01

2.62

3.55

3.66

3.20

3.81

10 years

2.04

2.58

3.47

3.47

3.10

3.44

83

Airbus

Financial Statements 2023