Airbus Annual Report 2023

Financial
Statements
2023

Financial
Statements

This document is a PDF version of the 2023 annual financial statements of Airbus SE including the independent auditor's report and has
been prepared for ease of use. The 2023 annual financial statements and the independent auditor's report were made publicly available
pursuant to section 5:25c of the Dutch Financial Supervision Act (Wet op het financieel toezicht), and were filed with Netherlands
Authority for the Financial Markets in European single electronic reporting format (‘the ESEF package’) and are available on the AFM’s
website (https://www.afm.nl/nl‑nl/sector/registers/meldingenregisters/financiele‑verslaggeving) as well as on Airbus SE's website (https://www.airbus.com/en/investors/ financial‑results‑annual‑reports).
In any case of discrepancies between this ‘PDF format’ and ‘the ESEF package’, the ESEF package prevails.

AirbusFinancial Statements 2023

1
Airbus SE IFRS Consolidated Financial Statements

32
Notes to the IFRS Consolidated Financial Statements

13

3
Airbus SE IFRS Company Financial Statements

111

4
Notes to the IFRS Company Financial Statements

117

5
Other Supplementary Information

Financial Statements 2023

145

Airbus1

Chapter

2 Airbus

Financial Statements 2023

1
Airbus SE IFRS Consolidated
Financial Statements
Airbus SE – IFRS Consolidated Income Statement for the years
ended 31 December 2023 and 2022

4

Airbus SE – IFRS Consolidated Statement of Comprehensive
Income for the years ended 31 December 2023 and 2022

5

Airbus SE – IFRS Consolidated Statement of Financial Position
for the years ended 31 December 2023 and 2022

6

Airbus SE – IFRS Consolidated Statement of Cash Flowsfor the years ended 31 December 2023 and 2022

8

Airbus SE – IFRS Consolidated Statement of Changes in Equity
for the years ended 31 December 2023 and 2022

10

Financial Statements 2023

Airbus3

Airbus SE IFRS Consolidated Financial Statements

Airbus SE – IFRS Consolidated Income Statement for the years ended
31 December 2023 and 2022
(In € million)

Note

2023

2022

Revenue

12

65,44658,763(55,402)(48,192)

10,044

10,571

(867)

(788)

(1,654)(1,452)

Cost of sales
Gross margin12

Selling expenses
Administrative expenses
Research and development expenses

13(3,257)(3,079)Other income

14

243

471

Other expenses

14

(209)

(590)

Share of profit from investments accounted for under the equity method

15

267

134

Other income from investments

15

36

58

4,603

5,325

Profit before financial result and income taxes
Interest income

16

728

180

Interest expense

16

(753)

(412)

Other financial result

16

191

(18)

Total financial result

16

166

(250)

Income taxes

17(1,156)

(939)

3,613

4,136

Equity owners of the parent (Net income)

3,789

4,247

Non‑controlling interests

(176)

(111)

€

€

Profit for the period
Attributable toEarnings per share
Basic

18

4.80

5.40

Diluted

18

4.80

5.39

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).

4 Airbus

Financial Statements 2023

Airbus SE IFRS Consolidated Financial Statements
Airbus SE – IFRS Consolidated Statement of Comprehensive Income for the years ended 31 December 2023 and 2022

Airbus SE – IFRS Consolidated Statement of Comprehensive Income
for the years ended 31 December 2023 and 2022
(In € million)

Note

Profit for the period

2023

2022

3,613

4,136

Other comprehensive income
Items that will not be reclassified to profit or loss:
Re‑measurement of the defined benefit pension plans

31

(29)

3,530

Income tax relating to re‑measurement of the defined benefit pension plans

17

(240)

(320)

61

(446)

(8)

56

(20)

241

4

101

Change in fair value of financial assets
Income tax relating to change in fair value of financial assets

17

Share of change from investments accounted for under the equity method
Items that may be reclassified to profit or loss:
Foreign currency translation differences for foreign operations
Change in fair value of cash flow hedges

37

3,298

(3,203)

Income tax relating to change in fair value of cash flow hedges

17

(904)

857

289

(723)

(3)

22

(1)

122

Other comprehensive income, net of tax

2,447

237

Total comprehensive income for the period

6,060

4,373

Equity owners of the parent

6,216

4,485

Non‑controlling interests

(156)

(112)

Change in fair value of financial assets
Income tax relating to change in fair value of financial assets

17

Share of change from investments accounted for under the equity method

1

Attributable to:

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).

Financial Statements 2023

Airbus5

Airbus SE IFRS Consolidated Financial Statements
Airbus SE – IFRS Consolidated Statement of Financial Position for the years ended 31 December 2023 and 2022

Airbus SE – IFRS Consolidated Statement of Financial Position
for the years ended 31 December 2023 and 2022
Note

2023

2022

Intangible assets

19

16,92916,768Property, plant and equipment20

17,201

16,50535

37(In € million)

AssetsNon‑current assets

Investment property
Investments accounted for under the equity method

9

2,228

2,067

Other investments and other long‑term financial assets

21

4,719

4,190

Non‑current contract assets

22

26

26

Non‑current other financial assets

25

922

781

Non‑current other assets

26

1,854

1,872

Deferred tax assets

17

3,448

4,683

Non‑current securities

36

7,508

6,013

54,87052,942

Total non‑current assets

Current assets
Inventories

23

33,741

32,202

Trade receivables

22

4,725

4,953

Current portion of other long‑term financial assets

21

795

665

Current contract assets

22

1,823

1,501

Current other financial assets

25

1,851

2,542

Current other assets

26

2,697

2,850

546

704

Current tax assets
Current securities

36

1,301

1,762

Cash and cash equivalents

36

16,46915,82363,94863,00253

0118,871

115,944

Total current assets
Assets and disposal group of assets classified as held for sale

Total assets

6 Airbus

Financial Statements 2023

Airbus SE IFRS Consolidated Financial Statements
Airbus SE – IFRS Consolidated Statement of Financial Position for the years ended 31 December 2023 and 2022

2023

2022

Capital stock

791

789

Share premium

3,983

3,837

Retained earnings

15,616

13,408

Accumulated other comprehensive income(2,305)(5,016)

(390)

(68)

17,695

12,95035

32

34

17,73012,982

Non‑current provisions

24

5,667

6,896

Long‑term financing liabilities

36

10,202

10,631

Non‑current contract liabilities

22

23,961

22,044

Non‑current other financial liabilities

25

6,715

10,117

Non‑current other liabilities

26

450

498

Deferred tax liabilities

17

361

164

Non‑current deferred income

35

17

Total non‑current liabilities

47,39150,367(In € million)

Note

Equity and liabilities
Equity attributable to equity owners of the parent

Treasury shares
Total equity attributable to equity owners of the parent
Non‑controlling interests

Total equity
Liabilities
Non‑current liabilities

1

Current liabilities
Current provisions

24

4,161

4,127

Short‑term financing liabilities

36

3,389

2,142

Trade liabilities

22

14,323

13,261

Current contract liabilities

22

24,53723,869Current other financial liabilities

25

2,569

4,073

Current other liabilities

26

3,507

3,803

Current tax liabilities

740

817

Current deferred income

450

503

Total current liabilities

53,67652,59574

0Total liabilities

101,141

102,962

Total equity and liabilities

118,871

115,944

Disposal group of liabilities classified as held for sale

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).

Financial Statements 2023

Airbus7

Airbus SE IFRS Consolidated Financial Statements
Airbus SE – IFRS Consolidated Statement of Cash Flows for the years ended 31 December 2023 and 2022

Airbus SE – IFRS Consolidated Statement of Cash Flows for the years
ended 31 December 2023 and 2022
2023

2022

Profit for the period attributable to equity owners of the parent (Net income)

3,789

4,247

Loss for the period attributable to non‑controlling interests

(176)

(111)

(In € million)

Note

Operating activities

Adjustments to reconcile profit for the period to cash provided by operating activities:
Interest income

16

(728)

(180)

Interest expense

16

753

412

Interest received

690

250

Interest paid

(606)

(322)

Income tax expense

17

Income tax paid
Depreciation and amortisation

11

Valuation adjustments
Results on disposals of non‑current assets

1,156

939

(544)

(790)

2,242

2,716

(541)

(569)

64

25

Results of investments accounted for under the equity method

15

(267)

(133)

Change in current and non‑current provisions

24

(114)

(1,016)

Contribution to plan assets

31

(668)

(601)

1,205

1,421

23, 36(1,854)(3,218)Trade receivables

22

258

(115)

Contract assets and liabilities

36

2,277

3,300

Trade liabilities

22, 36

1,421

3,309

Other assets and liabilities

25, 26(897)(1,855)

6,255

6,288

Change in other operating assets and liabilities
Inventories

Cash provided by operating activities

Investing activities
Purchases of intangible assets, property, plant and equipment, investment property

20(3,051)(2,464)

Proceeds from disposals of intangible assets, property, plant and equipment
and investment property

20

75

101

Acquisitions of subsidiaries, joint ventures, businesses and non‑controlling interests(net of cash)

8

(65)

(188)

Payments for investments accounted for under the equity method, other investments
and other long‑term financial assets

(960)

(777)

Proceeds from disposals of investments accounted for under the equity method,other investments and other long‑term financial assets

509

459

Dividends paid by companies valued at equity

9

150

100

Disposals of non‑current assets and disposal groups classified as assets held for sale andliabilities directly associated

8

0

0

Payments for investments in securities

36(2,700)(1,851)

Proceeds from disposals of securities

36

Cash (used for) investing activities

8 Airbus

Financial Statements 2023

1,914

1,507

(4,128)(3,113)

Airbus SE IFRS Consolidated Financial Statements
Airbus SE – IFRS Consolidated Statement of Cash Flows for the years ended 31 December 2023 and 2022

Note

2023

2022

Increase in financing liabilities

36

247

171

Repayment of financing liabilities

36

(52)

(1,348)Cash distribution to Airbus SE shareholders

34(1,421)(1,181)Dividends paid to non‑controlling interests

0(1)

Payments for liability for puttable instruments

138

135

(In € million)

Financing activities

Changes in capital and non‑controlling interests

34

146

145

Change in treasury shares

34

(334)

(36)

(1,276)(2,115)

(201)

191

Cash (used for) financing activities
Effect of foreign exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents

36

650

1,251

Cash and cash equivalents at beginning of period

36

15,823

14,572

Cash and cash equivalents at end of period

36

16,473

15,823

thereof presented as cash and cash equivalents

36

16,46915,823

thereof presented as part of disposal groups classified as held for sale

8

4

0

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS)

1Financial Statements 2023

Airbus9

Airbus SE IFRS Consolidated Financial Statements
Airbus SE – IFRS Consolidated Statement of Changes in Equity for the years ended 31 December 2023 and 2022

Airbus SE – IFRS Consolidated Statement of Changes in Equity
for the years ended 31 December 2023 and 2022
Equity attributable to equity holders of the parent
Accumulated othercomprehensive income(In € million)

Foreign
FinancialcurrencyCashassetstranslation Treasury
flow
at fair
CapitalShare Retained
value hedges adjustments sharesstock premium earnings
Note

Noncontrolling
Totalinterests

Total
equityBalance at
1 January 2022

787

3,712

6,834

456

(3,448)

1,170

(45)

9,466

20

9,486

Profit for the period

0

0

4,247

0

0

0

0

4,247

(111)

4,136

Other comprehensive
income

0

0

3,432

(1,091)(2,240)

137

0

238

(1)

237

Total comprehensive
income for the period

0

0

7,679

(1,091)(2,240)

137

0

4,485

(112)

4,373

Capital increase

34

2

125

0

0

0

0

0

127

0

127

Share‑based payment(IFRS 2)

32

0

0

115

0

0

0

0

115

0

115

Cash distribution to
Airbus SE shareholders /Dividends paid tonon‑controlling interests

34

0

0

(1,181)

0

0

0

0

(1,181)(1)(1,182)

0

0

(39)

0

0

0

0

(39)

125

86

(23)

(23)

0

(23)

Equity transaction (IAS 27)
Change in treasury shares

0

0

0

0

0

0

Balance at
31 December 2022

34

789

3,837

13,408(635)(5,688)

1,307

Profit for the period

0

0

3,789

0

0

0

0

3,789

(176)

3,613

Other comprehensive
income

0

0

(284)

339

2,390

(18)

0

2,427

20

2,447

Total comprehensive
income for the period

0

0

3,505

339

2,390

(18)

0

6,216

(156)

6,060

(68) 12,950

32 12,982

Capital increase

34

2

146

0

0

0

0

0

148

0

148

Share‑based payment(IFRS 2)

32

0

0

168

0

0

0

0

168

0

168

Cash distribution to
Airbus SE shareholders /Dividends paid tonon‑controlling interests

34

0

0

(1,421)

0

0

0

0

(1,421)0(1,421)

0

0

(44)

0

0

0

0

(44)

159

115

0

0

0

0

0

0

(322)

(322)

0

(322)

791

3,983

15,616(296)(3,298)1,289

Equity transaction (IAS 27)
Change in treasury shares

34

Balance at
31 December 2023

The accompanying notes are an integral part of these Consolidated Financial Statements (IFRS).

10 Airbus

Financial Statements 2023

(390) 17,695

35 17,730

Airbus SE IFRS Consolidated Financial Statements

1

Financial Statements 2023

Airbus11

Chapter

12 Airbus

Financial Statements 2023

2
Notes to the IFRS Consolidated
Financial Statements
2.1 Basis of Preparation

15

2.2 Airbus Structure

22

2.3 Segment Information

27

2.4 Airbus Performance31

2.5 Operational Assets and Liabilities

38

2.6 Employees Costs and Benefits51

2.7 Capital Structure and Financial Instruments

67

2.8 Other Notes

89

2.9 Appendix

94

Financial Statements 2023

Airbus13

2. Notes to the IFRS Consolidated Financial Statements

Contents
2.1 Basis of Preparation

15

1. The Company

15

2. Geopolitical and Macroeconomic Environment

15

3. Climate Impacts

15

4. Material Accounting Policies

17

5. Key Estimates and Judgements

19

6. Change in Accounting Policies and Disclosures20

2.2 Airbus Structure22

7. Scope of Consolidation

22

8. Acquisitions and Disposals

22

9. Investments Accounted for under the Equity
Method23

10. Related Party Transactions27

2.3 Segment Information

27

11. Segment Information

28

2.4 Airbus Performance31

12. Revenue and Gross Margin31

13. Research and Development Expenses

32

14. Other Income and Other Expenses

32

15. Share of Profit from Investments Accounted forunder the Equity Method and Other Income from
Investments

32

16. Total Financial Result

33

17. Income Taxes

33

18. Earnings per Share37

2.5 Operational Assets and Liabilities

38

19. Intangible Assets

38

20. Property, Plant and Equipment

41

14 Airbus

Financial Statements 2023

21. Other Investments and Other Long‑Term Financial
Assets43

22. Contract Assets and Contract Liabilities, Trade
Receivables and Trade Liabilities

44

23. Inventories

45

24. Provisions, Contingent Assets and Contingent
Liabilities

45

25. Other Financial Assets and Other Financial
Liabilities

47

26. Other Assets and Other Liabilities

48

27. Sales Financing Transactions49

2.6 Employees Costs and Benefits

51

28. Number of Employees

51

29. Personnel Expenses

52

30. Personnel‑Related Provisions52

31. Post‑Employment Benefits

52

32. Share‑based Payment

59

33. Remuneration

62

2.7 Capital Structure and Financial Instruments

67

34. Total Equity

67

35. Capital Management68

36. Net Cash69

37. Financial Instruments

73

2.8 Other Notes

89

38. Litigation and Claims

89

39. Auditor Fees

92

40. Events after the Reporting Date93

2.9 Appendix

94

2. Notes to the IFRS Consolidated Financial Statements
2.1 Basis of Preparation

2.1 Basis of Preparation
1.

The Company

The accompanying IFRS Consolidated Financial Statements
present the financial position and the results of operations ofAirbus SE (together with its subsidiaries referred to as “theCompany”), a European public limited‑liability company(Societas Europaea) with its seat (statutaire zetel) in
Amsterdam, The Netherlands, its registered address at
Mendelweg 30, 2333 CS Leiden, The Netherlands, andregistered
with
the
Dutch
Commercial
Register2.

(Handelsregister) under number 24288945. The Company’s
reportable segments are Airbus, Airbus Helicopters and Airbus
Defence and Space (see “– Note 11: Segment Information”).
The Company is listed on the European stock exchanges in
Paris, Frankfurt am Main, Madrid, Barcelona, Valencia andBilbao. The IFRS Consolidated Financial Statements wereauthorised for issue by the Company’s Board of Directors on
14 February 2024.

Geopolitical and Macroeconomic Environment

While 2023 saw the stabilisation of both inflation and theenergy crisis, the Company observed an overall cost increaseover its businesses (see “– Note 12: Revenues and Gross
Margin”). On the other hand, the continued high interest rateenvironment resulted in an improved interest result (see “–Note 16: Total Financial Result”).

The Company was also indirectly exposed to risk through thejoint venture ArianeGroup, which had received advancepayments from customers and also made advance payments
to the Russian Soyuz program in relation to launches that weresuspended. As of 31 December 2023, agreements have beenreached with all the clients on pre‑payments received.

The war in Ukraine has increased the Company’s exposure tosupply chain disruption risk given that part of the titanium usedby the Company is sourced from Russia, both directly andindirectly through the Company’s suppliers. As a consequence,a de‑risking plan is being implemented to increase resilience. It
consists in establishing alternatives to the current materials andparts references. This has prevented the Company fromany production disruptions in 2023 and it is continuously being
reviewed to avoid any shortage in the supply chain.

Although the Company is operating in a complex global
environment and continues to be affected by delays ofmaterials and parts in 2023, it maintains its production ramp‑up
trajectory. The A220 ramp‑up continues towards a monthly
production rate of 14 aircraft in 2026, with a focus on the
programme’s industrial maturity and financial performance. On
the A320 Family programme, production is progressing welltowards the previously announced rate of 75 aircraft per monthin 2026. In 2023, construction of the second A320 Final
Assembly capacities in Tianjin (China) and Mobile (US)commenced and the new A320 Family Final Assembly Line inToulouse delivered its first aircraft in December. The first
customer A321XLR entered into the Final Assembly Line in
December, with entry‑into‑service for the aircraft type expected
to take place in Q3 2024. On widebody aircraft, the Company
continues towards a monthly rate of four aircraft for the A330 in
2024 and rate 10 in 2026 for the A350.

In 2023, the Company maintained compliance with allapplicable regulations and sanctions on its facilities andoperations in Russia. The Representative Office in Moscow wasclosed in August 2023, while the Airbus Russia affiliate (Airbus
RUS) and the Space Division’s two joint ventures in Russia,
Energia Satellite Technologies and Synertech, are in theprocess of being closed.

3.

2

Climate Impacts

Climate change may have a major impact on both thecompany’s industrial operations and its upstream anddownstream value chain. The impacts have been taken into
account by the management when preparing the Consolidated
Financial
Statements.
The
Company
follows
therecommendations of the Task Force on Climate‑related
Financial Disclosures (TCFD) to identify climate related risks andopportunities both transition and physical and establish atransition plan. The transition plan covers industrial operations,products and services, supply chain and employees and isconsistent with the aviation sector’s long‑term aspirational
decarbonisation goal of reaching net‑zero carbon emissions by
2050.

Financial Statements 2023

Airbus15

2. Notes to the IFRS Consolidated Financial Statements
2.1 Basis of Preparation

Scope 1 & 2 represent around 0.2% of total emissions each.
The Company’s Scope 3 category 11 – Use of sold products –has been identified as highly material for the Company,
representing above 90% of total emissions. The second mostmaterial was Category 1 – Purchased goods and services,
representing around 2.5% of total emissions. CO2 emissions
from commercial aircraft in operation appear to be the mostmaterial category. In order to address the Company’s carbon
footprint, five strategic pathways that are part of the transition
plan have been established. The strategic pathways focus on
the following (i) renew current fleet with best‑in‑class aircraft(ii) developing and deploying SAF (all aircraft types compatible
with up to 100% SAF by 2030) (iii) investing in technologies toreduce product emissions (iv) investing in smart air traffic
management (ATM) solutions and optimised operations and(v) encouraging temporary CO2 emission compensation
schemes.
As of 31 December 2023, the impacts of the transition plan
were included in the Financial Statements as well as theCompany’s Operative Plan.
Accordingly, research and development expenditures mostly
relate to the latest generation commercial aircraft programmes
which are more fuel‑efficient than the previous generation,
therefore offering an immediate potential for aviation
decarbonisation when replacing a previous generation aircraft.
Research and development costs also included significant
expenses related to “zero direct tailpipe CO2 emissions”
technologies alongside research activities and technical work inorder to reach the goal of obtaining certification for operatingwith up to 100% SAF for all current aircraft programmes before
the end of the decade.
Furthermore, the Company invests in decarbonising its
stationary sources (ground fixed assets) and mobile sources(“Beluga” air transport, flight operations and sea vessels). In
2023 above €30 million was invested in renewable energy,
energy efficiency, biomass and industrial improvements, all ofwhich are part of the Company’s industrial decarbonisation
roadmap. The internal carbon price, set at €150 per tonne ofCO2, is used to support decision making of the Company’s
capital expenditures investment taking into account CO2
reduction impacts on operations.

In 2023 the Company invested more than €40 million incompanies and partnerships (e.g. DG Fuel, JetZero, ZeroAvia
and Hy24) in order to foster the hydrogen and SAF ecosystem
readiness.
According to the assessment performed for both acute andchronic physical risk using the TCFD recommendations (e.g.
extreme temperatures, flood sea level rise or water stress),medium or high probability of these risks materialising is seenaround 2050 in the well below 2°C (WB2°C) scenario. In this
scenario societies gradually adopt practices to enable therequired levels of reduction of emissions, including increasing
investment in and development of technologies that could
reduce emissions of the transport sector and limit emissions
growth. For the comprehensive list of climate‑related risks
considered and a full description of the climate scenarios,
please refer to the Risk Factors section in the “Report of theBoard of Directors – 4.6.4 Environment, human rights, health &safety risks – Climate‑related risks”. Policies to decarbonise areprogressively introduced. The weighted average remaining
useful life for the predominant portion of depreciable assets inFrance, Germany, UK, Spain, United States and Canada
collectively constituting the majority of the Company’s Property,
Plant, and Equipment is approximately 14 years. As a result,
the Company did not identify a need to change the assumption
on the useful life of its Property, Plant and Equipment as thelargest share of the assets will fully depreciate before 2050.
In January 2023, the Company received approval from the
Science Based Targets initiative (SBTi) for its greenhouse gas
emission (GHG) reduction near‑term targets. These targets, inline with the Paris Agreement’s objectives, are based on climate
science and cover the full set of the Company’s emissions. The
Company intends to reduce its Scope 1 and Scope 2 industrial
emissions by up to 63% by 2030, in line with a 1.5°C pathway.
The Company also committed to reducing by 46% thegreenhouse gas emissions intensity generated by its
commercial aircraft in service (Scope 3 – Use of Sold Product)by 2035. Both targets are based on the 2015 year as abaseline. In 2023, scope 1 & 2 GHG emissions have decreased
by around 15% vs. 2022, and 42% vs. baseline 2015 year.
In addition, verified carbon compensation schemes werepurchased voluntarily in order to compensate for its residual
Scope 1 and 2 emissions – around 725k tons of CO2e.

Capitalised development costs
The Company estimates that there is no impact on the usefullife of capitalised development costs as it believes that its latest
generation commercial aircraft programmes, which represent a
majority of its capitalised development costs, will play a pivotal
role in achieving near term decarbonisation targets. This will besupported by the fleet renewal with latest generation aircraft
which deliver significant CO2 emissions savings whencompared to previous generation aircraft. The Company’s goalof obtaining certification for operating with up to 100% SAF for
all current aircraft programmes before the end of the decade
will further substantiate their useful life.
The Company’s order book is composed almost entirely ofthese more fuel‑efficient aircraft. Net orders, strengthening the

16 Airbus

Financial Statements 2023

order book in 2023, further demonstrate continuous demand
for fuel efficient aircraft and their role in supporting the sector’s
decarbonisation ambitions.
The remaining portion of capitalised development costs relate
to helicopter programmes that in 2023 saw strong demand andare planned to be capable of being operated with 100% SAF
by 2030, satellite programmes as well as technologies such as
High‑Altitude Platform systems (HAPS). A significant share ofthese products plays an important role in supporting climatechange monitoring and adaptation (e.g. earth observation
satellites, search and rescue and firefighting helicopters as wellas wildlife or environmental monitoring).

2. Notes to the IFRS Consolidated Financial Statements
2.1 Basis of Preparation

4.

Material Accounting Policies

Basis of preparation — The Company’s Consolidated
Financial Statements are prepared in accordance with
International Financial Reporting Standards (“IFRS”), issued by
the International Accounting Standards Board (“IASB”) as
endorsed by the European Union (“EU”) and Part 9 of Book 2of the Netherlands Civil Code. When reference is made to IFRS,
this intends to be EU‑IFRS.
The Consolidated Financial Statements have been prepared ona historical cost basis, unless otherwise indicated. They areprepared and reported in euro (“€”) and all values are rounded
to the nearest million appropriately. Due to rounding, numberspresented may not add up precisely to the totals provided andpercentages may not precisely reflect the absolute figures.
The Company describes the accounting policies applied ineach of the individual notes to the Financial Statements andavoids repeating the text of the standard, unless this isconsidered relevant to the understanding of the note’s content.
The Company’s accounting policies and methods areunchanged compared to 31 December 2022. The
implementation of other amended standards has no material
impact on the Company’s Consolidated Financial Statements
as of 31 December 2023. The most material accounting
policies are described below, and have been updated
accordingly.
Revenue recognition — Revenue is recognised when the
Company transfers control of the promised goods or services
to the customer. The Company measures revenue, for theconsideration to which the Company is expected to be entitledin exchange for transferring promised goods or services.
Variable considerations are included in the transaction pricewhen it is highly probable that there will be no significant
reversal of the revenue in the future. The Company identifies
the various performance obligations of the contract andallocates the transaction price to these performanceobligations. Advances and pre‑delivery payments (contract
liabilities) are received in the normal course of business and are
not considered to be a significant financing component as they
are intended to protect the Company from the customer failingto complete its contractual obligations.
Revenue from the sale of commercial aircraft is recognised
at a point in time (i.e. at delivery of the aircraft). The Company
estimates the amount of price concession granted by theCompany’s engine suppliers to their customers as a reductionof both revenue and cost of sales.
An aircraft can remain in storage under a bill‑and‑holdarrangement. In such cases, revenue is recognised when therequirements for the transfer of control under a bill‑and‑holdarrangement are fulfilled.
Revenue from the sale of military aircraft, space systems
and services — When control of produced goods or renderedservices is transferred over time to the customer, revenue isrecognised over time, i.e. under the percentage of completion
method (“PoC” method).

The Company transfers control over time when:– it produces a good with no alternative use and the Company
has an irrevocable right to payment (including a reasonablemargin) for the work completed to date, in the event ofcontract termination at the convenience of customers (e.g.
Tiger contract); or– it creates a good which is controlled by the customer as thegood is created or enhanced (e.g. Eurofighter contracts,some border security contracts, A400M development); or– the customer simultaneously receives and consumes thebenefits provided by the Company (e.g. maintenancecontracts).
For the application of the over time method (PoC method), themeasurement of progress towards complete satisfaction of aperformance obligation is based on inputs (i.e. cost incurred).
When none of the criteria stated above have been met, revenue
is recognised at a point in time. For instance, revenue isrecognised at the delivery of aircraft under IFRS 15 from thesale of military transport aircraft, from the A400M launch
contract and most of NH90 serial helicopters’ contracts.
Provisions for onerous contracts — The Company records
provisions for onerous contracts when it becomes probablethat the total contract costs will exceed total contract revenue.
Before a provision for onerous contracts is recorded, therelated assets under construction are measured at their net
realisable value and written‑off if necessary. Onerous contracts
are identified by monitoring the progress of the contract
together with the underlying programme status. An estimate of
the related contract costs is made, which requires significant
and complex assumptions, judgements and estimates related
to achieving certain performance standards (see “– Note 5: Key
Estimates and Judgements”, “– Note 12: Revenue and Gross
Margin” and “– Note 24: Provisions, Contingent Assets andContingent Liabilities”).

2

Research and development expenses — The costs forinternally generated research are expensed when incurred. The
costs for internally generated development are capitalised
when:– the product or process is technically feasible and clearly
defined (i.e. the critical design review is finalised);– adequate resources are available to successfully complete
the development;– the benefits from the assets are demonstrated (a market
exists or the internal usefulness is demonstrated) and thecosts attributable to the projects are reliably measured;– the Company intends to produce and market or use thedeveloped product or process and can demonstrate its
profitability.
Income tax credits granted for research and development
activities are deducted from corresponding expenses or from
capitalised amounts when earned.

Financial Statements 2023

Airbus17

2. Notes to the IFRS Consolidated Financial Statements
2.1 Basis of Preparation

Capitalised development costs, are recognised either as
intangible assets or when the related development activities
lead to the construction of specialised tooling for production(“jigs and tools”), or involve the design, construction and testingof prototypes and models, as property, plant and equipment.
Capitalised development costs are generally amortised over theestimated number of units produced. If the number of units
produced cannot be estimated reliably, they are amortised overthe estimated useful life of the internally generated intangible
asset. Amortisation of capitalised development costs is
recognised in cost of sales. In testing long‑life assets such as
jigs and tools and capitalised development costs for
impairment, the Company makes estimates on the number andtiming of aircraft units to be delivered in the future, the marginof these aircraft, and the discount rate associated with theaircraft programme.
Inventories are measured at the lower of acquisition cost
(generally the average cost) or manufacturing cost and net
realisable value. Manufacturing costs comprise all costs thatare directly attributable to the manufacturing process, such as
direct material and labour, and production related overheads(based on normal operating capacity and normal consumptionof material, labour and other production costs), including
depreciation charges. Net realisable value is the estimatedselling price in the ordinary course of the business less theestimated costs to complete the sale. For aircraft that may
need to be remarketed, the impairment of working progress
and finished aircraft is assessed based on an estimation of the
future selling price and associated remarketing costs.
Transactions in foreign currency, i.e. transactions incurrencies other than the functional currency of an entity of theCompany, are translated into the functional currency at theforeign exchange rate prevailing at the transaction date.
Monetary assets and liabilities denominated in foreign
currencies at the end of the reporting period are remeasured
into the functional currency at the exchange rate in effect atthat date. Except when deferred in equity as qualifying cash
flow hedges (see “– Note 37: Financial Instruments”), these
foreign exchange remeasurement gains and losses arerecognised, in line with the underlying item:– in profit before financial result and income taxes if thesubstance of the transaction is commercial (including sales
financing transactions); and– in financial result for financial transactions.
Non‑monetary assets and liabilities denominated in foreign
currencies that are stated at historical cost are translated intofunctional currency at the foreign exchange rate in effect at thedate of the transaction. Translation differences on
non‑monetary financial assets and liabilities that are measured
at fair value are reported as part of the fair value gain or loss.
However, translation differences of non‑monetary financial
assets measured at fair value and classified as fair value
through other comprehensive income (“OCI”) are included inaccumulated other comprehensive income (“AOCI”).

18 Airbus

Financial Statements 2023

Hedge accounting — Most of the Company’s revenue isdenominated in US dollar (“US$”), while a major portion of its
costs are incurred in euro. The Company is significantly
exposed to the risk of currency changes, mainly resulting fromUS$/€ exchange rates. Furthermore, the Company is exposed,though to a much lesser extent, to foreign exchange risk arisingfrom costs incurred in currencies other than the euro and toother market risks such as interest rate risk, commodity priceand equity price risk.
In order to manage and mitigate those risks, the Company
enters into derivative contracts. The Company applies hedge
accounting to its derivative contracts whenever the relevant
IFRS criteria can be met. Hedge accounting ensures thatderivative gains or losses are recognised in profit or loss (mainly
in revenue) in the same period that the hedged items ortransactions affect profit or loss.
The major portion of the Company’s derivative contracts is
accounted for under the cash flow hedge model. The fair value
hedge model is used only for certain interest rate derivatives.
Derivative contracts which do not qualify for hedge accounting
are accounted for at fair value through profit or loss; any related
gains or losses being recognised in financial result.
The Company’s hedging strategies and hedge accounting
policies are described in more detail in “– Note 37: Financial
Instruments”.
Leases — The Company assesses whether a contract is, or
contains, a lease, at inception of the contract.
The Company recognises a right‑of‑use asset and acorresponding lease liability with respect to all leasearrangements in which it is the lessee, except for short‑termleases and leases of low value assets.
The Company recognises right‑of‑use assets at thecommencement date of the lease, when the underlying asset isavailable for use. The right‑of‑use assets comprise the initial
measurement of the corresponding lease liability, lease
payments made at or before the commencement day, less anylease incentives received and any initial direct costs. They aresubsequently measured at cost less accumulated depreciationand impairment losses. The lease liability is initially measured at
the present value of the lease payments that are not paid at thecommencement date, discounted by using the rate implicit in
the lease. If this rate cannot be readily determined, theCompany uses its incremental borrowing rate.
The Company presents right‑of‑use assets within “Property,
plant and equipment” and lease liabilities within “Financing
liabilities” and classifies the principal portion of lease payments
within financing activities and the interest portion within
operating activities.
When the Company is the lessor, assets under operatingleases are also included in “Property, plant and equipment”.
Lease income from operating leases is recognised on astraight‑line basis over the term of the lease (see “– Note 20:
Property, Plant and Equipment” “– Note 36.3: Financing
Liabilities”).

2. Notes to the IFRS Consolidated Financial Statements
2.1 Basis of Preparation

5.

Key Estimates and Judgements

The preparation of the Company’s Consolidated Financial
Statements requires the use of estimates and assumptions. In
preparing these Financial Statements, management exercises
its best judgement based upon its experience and thecircumstances prevailing at that time. The estimates andassumptions are based on available information and conditions
at the end of the financial period presented and are reviewed
on an ongoing basis. Key estimates and judgements that havea significant influence on the amounts recognised in the
Company’s Consolidated Financial Statements are mentioned
below:
Revenue recognition for performance obligationstransferred over time — The PoC method is used torecognise revenue for performance obligations transferred overtime. This method places considerable importance on accurate
estimates at completion as well as on the extent of progress
towards completion. For the determination of the progress ofthe performance obligations, significant estimates include total
contract costs, remaining costs to completion, total contract
revenue, contract risks and other judgements.
The Company and its customer may agree to modify the scopeor price of long‑term contracts. Once the revised rights andobligations are agreed and enforceable, the Company
estimates the change in the transaction price.
The management of the segments continually review all
estimates involved in such performance obligations and adjusts
them as necessary (see “– Note 22: Contract Assets andContract Liabilities, Trade Receivables and Trade Liabilities”).
Provisions — The evaluation of provisions, such as onerous
contracts, program‑related provisions and restructuring
measures are based on best estimates. Onerous contracts are
identified by monitoring the progress of the contract and theunderlying programme performance. The associated estimatesof the relevant contract costs require significant judgement
related to performance achievements. Depending on the size
and nature of the Company’s contracts and related
programmes, the extent of assumptions, judgements andestimates in these monitoring processes differs. In particular,
the introduction of commercial or military aircraft programmes(e.g. A400M) or major derivative aircraft programmes involves
an increased level of estimates and judgements associatedwith the expected development, production and certification
schedules and expected cost components (see “– Note 24:
Provisions, Contingent Assets and Contingent Liabilities”).
In view of overall commercial relationships, contract
adjustments may occur, and must be considered on acase‑by‑case basis.
Estimates and judgements are subject to change based on
new information as contracts and related programmes
progress. Furthermore, the complex design and manufacturing
processes of the Company’s industry require challenging
integration and coordination along the supply chain including
an ongoing assessment of suppliers’ assertions which may

additionally impact the outcome of these monitoring processes.
A restructuring provision is recognised when the Company has
developed a detailed formal plan for the restructuring and has
raised a valid expectation in those affected that it will carry out
the restructuring by starting to implement the plan or
announcing its main features to those affected by it. The
measurement of a restructuring provision is at the best
estimate of the anticipated costs and includes only the direct
expenditures arising from the restructuring, which are thoseamounts that are both necessarily entailed by the restructuring
and not associated with the ongoing activities of the Company.
Financial instruments fair value measurement using Level 3
inputs — The Company uses its judgement to select a
valuation methodology and make assumptions in order todetermine the fair value of financial instruments that are nottraded in an active market and for which no inputs other thanquoted prices are observable. Valuation techniques (including
Discounted Cash Flow model) rely on market conditions
available at the reporting period together with estimates derived
from the Company’s own data. Changes in assumptions may
result in a significant change in the reported fair value
measurement of these financial instruments (See “– Note 37.2:
Carrying Amounts and Fair Values of Financial Instruments”).
Non‑current assets — Non‑current other assets include
payments to be made to Airbus by suppliers after aircraft
delivery and are recorded as a reduction of cost of goods soldat the time of aircraft delivery. This valuation involves the use ofjudgement and is based on the best available estimate of the
future aircraft operations, the pattern of future maintenanceactivity and escalation of costs of long‑term contractual
arrangement with suppliers. The impact of climate change isalso considered when making these estimates. These future
payments are discounted to reflect specific contractual terms
and repayment profile. In making such estimates, Airbus relies
on both management experience and industry regulations,however, these estimates can be subject to revision (see –“Note 26: Other Assets and Other Liabilities”).

2

Hedge accounting — The hedge portfolio covers a large
portion of the Company’s highly probable forecasted
transactions derived from its commercial activities. The
Company makes estimates and judgement in assessing thehighly probable criteria of the forecasted transactions, in orderto anticipate future events, as risk of future cancellations oforders (see “– Note 37: Financial Instruments”).
Employee benefits — The Company accounts for pension
and other post‑retirement benefits in accordance with actuarial
valuations. These valuations rely on statistical and other factors
in order to anticipate future events. The actuarial assumptions
may differ materially from actual developments mainly due tochanging market and economic conditions and therefore resultin a significant change in post‑retirement employee benefit
obligations and the related future expenses (see “– Note 31:
Post‑Employment Benefits”).

Financial Statements 2023

Airbus19

2. Notes to the IFRS Consolidated Financial Statements
2.1 Basis of Preparation

Legal contingencies — The Company is party to litigations
related to a number of matters as described in “– Note 38:
Litigation and Claims”. The outcome of these matters may havea material effect on the financial position, results of operations
or cash flows of the Company. Management regularly analyses
current information concerning these matters and provides
provisions for probable cash outflows, including the estimate oflegal expenses to resolve the matters. Internal and externallawyers are used for these assessments. In making thedecision regarding the need for provisions, management
considers the degree of probability of an unfavourable outcome
and the ability to make a sufficiently reliable estimate of theamount of loss. The filing of a suit or formal assertion of a claim
against the Airbus companies or the disclosure of any such suitor assertion, does not automatically indicate that a provision
may be appropriate.
Income taxes — The Company operates and earns income innumerous countries and is subject to changing tax laws in
multiple jurisdictions within these countries. Significant
judgements are necessary in determining the worldwide
income tax liabilities. Although management believes that it has
made reasonable estimates about the final outcome of tax
uncertainties, no assurance can be given that the final tax
outcome of these matters will be consistent with what isreflected in the historical income tax provisions. At each end of
the reporting period, the Company assesses whether the6.

realisation of future tax benefits is probable to recognisedeferred tax assets. This assessment requires the exercise ofjudgement on the part of management with respect to, among
other things, benefits that could be realised from available tax
strategies and future taxable income, as well as other positive
and negative factors.
The recorded amount of total deferred tax assets could be
reduced, through valuation allowances recognition, if estimatesof projected future taxable income and benefits from available
tax strategies are lowered, or if changes in current tax
regulations are enacted that impose restrictions on the timing
or extent of the Company’s ability to utilise future tax benefits.
The basis for the recoverability test of deferred tax assets is thesame as the Company’s latest operative planning also taking
into account certain qualitative aspects regarding the nature of
the temporary differences. Qualitative factors include but are
not limited to an entity’s history of planning accuracy,
performance records, business model, backlog, existence oflong‑term contracts as well as the nature of temporary
differences (see “– Note 17: Income Taxes”).
Other subjects that involve assumptions and estimates arefurther described in the respective notes (see “– Note 8:
Acquisitions and Disposals”, “– Note 19: Intangible Assets” and“– Note 22: Contract Assets, Contract Liabilities and Trade
Receivables, and Trade Liabilities”).

Change in Accounting Policies and Disclosures

The accounting policies applied by the Company in preparationof its 2023 year‑end Consolidated Financial Statements are thesame as applied for the previous year. Other than that,amendments, improvements to and interpretations ofstandards effective from 1 January 2023 have no material
impact on the Consolidated Financial Statements.

New, Revised or Amended IFRSs Applied from 1 January 2023
Amendments to IAS 12 “Income Taxes – International Tax Reform – Pillar Two Model Rules”
The amendments introduce a temporary exception to theaccounting requirements for deferred taxes in IAS 12, so thatan entity would neither recognise nor disclose information
about deferred tax assets and liabilities related to Pillar Two

20 Airbus

Financial Statements 2023

income taxes. As a consequence, no deferred tax assets or
liabilities are recognised in the Consolidated Financial
Statements as of 31 December 2023.

2. Notes to the IFRS Consolidated Financial Statements
2.1 Basis of Preparation

New, Revised or Amended IFRSs Issued but not yet Applied
A number of new or revised standards, amendments and improvements to standards as well as interpretations are not yet effective for theyear‑ended 31 December 2023 and have not been applied in preparing these Consolidated Financial Statements and early adoption is notplanned:Standards and related amendments

IASB effective date
for annual reporting
periods beginningon or after Endorsement status

Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

1 January 2024

Endorsed

Amendments to IAS 1 “Classification of Liabilities as Current or Non‑current”

1 January 2024

Endorsed

Amendments to IAS 1 “Non‑current Liabilities with Covenants”

1 January 2024

Endorsed

Amendments to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial Instruments:
Disclosures: Supplier Finance Arrangements” (1)1 January 2024

Not yet endorsed

Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates: Lack of
Exchangeability”

1 January 2025

Not yet endorsed(1) As of 31 December 2023, for additional information related to Supplier Finance Arrangements, see “– Note 22. Contract Assets and Contract Liabilities, Trade
Receivables and Trade Liabilities”.

2

Financial Statements 2023

Airbus21

2. Notes to the IFRS Consolidated Financial Statements
2.2 Basis of Preparation

2.2 Airbus Structure
7.

Scope of Consolidation

Consolidation — The Company’s Consolidated Financial
Statements include the Financial Statements of Airbus SE andall material subsidiaries controlled by the Company. The
Company’s subsidiaries prepare their Financial Statements atthe same reporting date as the Company’s Consolidated
Financial Statements (see Appendix “Simplified Airbus
Structure” chart).
Subsidiaries are entities controlled by the Company including
so‑called structured entities, which are created to accomplish anarrow and well‑defined objective. They are fully consolidated
from the date control commences to the date control ceases.
The assessment of control of a structured entity is performed inthree steps. In a first step, the Company identifies the relevant
activities of the structured entities (which may include
managing lease receivables, managing the sale or re‑lease at

the end of the lease and managing the sale or re‑lease on
default) and in a second step, the Company assesses which
activity is expected to have the most significant impact on the
structured entities’ return. Finally, the Company determines
which party or parties control this activity.
The Company’s interests in equity‑accounted investees
comprise investments in associates and joint ventures. Suchinvestments are accounted for under the equity method andare initially recognised at cost.
The Financial Statements of the Company’s investments inassociates and joint ventures are generally prepared for thesame reporting period as for the parent company. Adjustments
are made where necessary to bring the accounting policies andaccounting periods in line with those of the Company.

PERIMETER OF CONSOLIDATION
31 December
2023

2022

175

179

in joint ventures

63

53

in associates

21

29

Total

259

261

(Number of companies)

Fully consolidated entities
Investments accounted for under the equity method8.

Acquisitions and Disposals

Business combinations are accounted for using theacquisition method, as at the acquisition date, which is thedate on which control is transferred to the Company.
The determination of the fair value of the acquired assets andthe assumed liabilities which are the basis for the measurementof goodwill requires key estimates. Land, buildings andequipment are usually independently appraised while
marketable securities are valued at market prices. If intangible
assets are identified, depending on the type of intangible asset
and the complexity of determining its fair value, the Company
either consults with an independent external valuation expert ordevelops the fair value internally, using appropriate valuation
techniques which are generally based on a forecast of the total
expected future net cash flows.
These evaluations are linked closely to the assumptions madeby management regarding the future performance of the assets

22 Airbus

Financial Statements 2023

concerned and the discount rate applied.
Loss of control, loss of joint control, loss of significant
influence — Upon loss of control of a subsidiary, the assets
and liabilities and any components of the Company’s equity
related to the subsidiary are derecognised. Any gain or loss
arising from the loss of control is recognised within otherincome or other expenses in the Consolidated Income
Statement. If the Company retains any interest in the previous
subsidiary, such interest is measured at fair value at the datethe control is lost.
Assets and liabilities of a material subsidiary for which a loss ofcontrol is highly probable are classified as assets and liabilities
held for sale when the Company has received sufficientevidence that the loss of control will occur in the 12 months
after the classification. These assets and liabilities arepresented after elimination of intercompany transactions.

2. Notes to the IFRS Consolidated Financial Statements
2.2 Basis of Preparation

When the loss of significant influence or the loss of joint control
of an investment accounted for under the equity method ishighly probable and is expected to occur in the coming
12 months, this associate or joint venture is classified as an
asset held for sale.

8.1

Acquisitions

On 20 June 2022, a Share Purchase Agreement was signed by
the Company, Safran and Tikehau Capital for the acquisition of
Aubert & Duval from Eramet. On 28 April 2023, the acquisition
was finalised following the satisfaction of all conditions
precedent including required regulatory approvals. Aubert &Duval is a strategic supplier providing high‑performance steel,superalloy, aluminium or titanium parts to high‑precisioncustomers in aerospace and other industries. Aubert & Duvalinvestment is owned equally by Airbus, Safran and Tikehau
Capital and is accounted for under the equity method.
On 20 July 2022, Satair USA, Inc. signed a Membership
Interest Purchase Agreement under which it acquired 100% of
the shares of VAS Aero Services, LLC. VAS Aero Services
provides aviation logistics and aftermarket services including
end‑of‑life support. A preliminary goodwill of €67 million wasrecognised as of 31 December 2022. The one‑year window

8.2

period for the completion of the purchase price allocation
ended in June 2023 which confirmed the preliminary goodwill
assessment.
On 31 December 2022, Airbus Helicopters Deutschland GmbHacquired 100% of the shares of ZF Luftfahrttechnik GmbH. ZF
Luftfahrttechnik was subsequently renamed Airbus Helicopters
Technik GmbH. The company is a manufacturer of dynamic
components for light and medium helicopters and amaintenance, repair, and overhaul service partner for helicopter
fleet. The purchase price allocation ended on 31 December
2023 with a final goodwill of €45 million.
As of 31 December 2023, the total consideration paid for
acquisitions of subsidiaries, joint ventures, businesses andnon‑controlling interests (net of cash) amounts to €-65 million(2022: -188 million).

Assets and Disposal Groups Classified as Held for Sale

As of 31 December 2023, the Company intends to divest oneof its subsidiaries. The assets and liabilities relating to thisdisposal have been reclassified to assets classified as held for

9.

Sale of investment in an associate or joint venture — Anygain or loss arising from the disposal of investment accounted
for under the equity method is recognised within share of profit
from investments.

sale for a net amount of €-22 million. The transaction is
expected to be closed in 2024.

Investments Accounted for under the Equity Method

231 December(In € million)

2023

2022

Investments in joint ventures

1,830

1,686

Investments in associates

398

381

2,228

2,067

Total

Investments accounted for under the equity method increased by €+161 million to €2,228 million (2022: €2,067 million). They
mainly include the equity investments in ArianeGroup, MBDA and ATR GIE.

Financial Statements 2023

Airbus23

2. Notes to the IFRS Consolidated Financial Statements
2.2 Basis of Preparation

9.1

Investments in Joint Ventures

The joint ventures in which the Company holds an interest are
structured in separate incorporated companies. Under joint
arrangement agreements, unanimous consent is required fromall parties to the agreement for all relevant activities. The
Company and its partners have rights to the net assets ofthese entities through the terms of the contractual agreements.

The Company’s interest in its joint ventures, accounted for under the equity method, is stated in aggregate in the following table:(In € million)

2023

2022

Carrying amount of the investments at 1 January

1,686

1,471

New joint ventures

109

0

Share of results from continuing operations

211

99

Share of other comprehensive income

(15)

173

Dividends received during the year

(136)

(99)

Capital increase (decrease)

(17)

36

Changes in consolidation

0

0

Others

(8)

6

1,830

1,686

Carrying amount of the investments at 31 December

The Company’s individually material joint ventures are
ArianeGroup, Paris (France), MBDA S.A.S., Paris (France), andATR GIE, Blagnac (France), as parent companies of theirrespective groups. These joint venture companies are notpublicly listed.
ArianeGroup is a 50% joint venture between the Company
and Safran. ArianeGroup is the head company in a group
comprising several subsidiaries and affiliates, such as: APP,
Arianespace, Eurocryospace, Europropulsion, Nuclétudes,
Pyroalliance, Regulus and Sodern. ArianeGroup inherits a richportfolio of products and services, enabling it to deliver
innovative and competitive solutions to numerous customers
around the world. In 2022, ArianeGroup has been strongly
impacted by the Ukraine crisis. All Soyuz flights operated by
Arianespace and Starsem have been canceled since
24 February 2022 (see “– Note 2: Geopolitical andMacroeconomic Environment”). In 2023, ArianeGroup hasannounced the postponement of the inaugural flight of the

24 Airbus

Financial Statements 2023

Ariane 6 launcher. It is planned for the period between
mid‑June to end of July 2024.
The Company holds a 37.5% stake in MBDA at 31 December
2023, which is a joint venture between the Company, BAE
Systems and Leonardo. MBDA offers missile systems
capabilities that cover the whole range of solutions for air
dominance, ground‑based air defence and maritime superiority,
as well as advanced technological solutions for battlefield
engagement.
ATR GIE manufactures advanced turboprop aircraft. It is a 50%
joint venture between Leonardo and the Company. Both
Leonardo and the Company provide airframes which areassembled by ATR GIE in France. The members of ATR GIE arelegally entitled exclusively to the benefits and are liable for thecommitments of the joint venture. ATR GIE is obliged to transfer
its cash to each member of the joint venture.

2. Notes to the IFRS Consolidated Financial Statements
2.2 Basis of Preparation

The following table summarises financial information for ArianeGroup, MBDA and ATR GIE based on their Consolidated Financial
Statements prepared in accordance with IFRS:
ArianeGroupMBDA

ATR GIE(In € million)

2023

2022

2023

2022

2023

2022

Revenue

2,298

2,357

4,451

4,210

1,033

852

Depreciation and amortisation

(122)

(153)

(192)

(199)

(41)

3

Interest income

39

2

168

39

0

0

Interest expense

(16)

(23)

(13)

(25)

0

0

4

(19)

(146)

(123)

(9)

(2)

(32)

19

498

386

24

(11)

7

70

(49)

316

0

0

(26)

89

449

702

24

(11)

Non‑current assets

6,110

6,086

3,022

2,748

244

239

Current assets

7,362

6,841

10,111

8,160

719

785

thereof cash and cash equivalents

1,219

1,409

4,740

2,987

9

4

Non‑current liabilities

1,116

909

166

206

95

75

334

358

17

11

0

0

8,155

7,790

11,330

9,171

686

748

85

59

749

22

0

0

Total equity (100%)

4,201

4,228

1,637

1,531

182

201

Equity attributable to the equity owners of the parent

4,217

4,230

1,637

1,531

182

201

(16)

(2)

0

0

0

0

Income tax
Profit (loss) from continuing operations
Other comprehensive income

Total comprehensive income (100%)

thereof non‑current financial liabilities(excluding trade and other payables and provisions)
Current liabilities
thereof current financial liabilities(excluding trade and other payables and provisions)Non‑controlling interests

ArianeGroupMBDA

ATR GIE(In € million)

2023

2022

2023

2022

2023

2022

The Company’s interest in equity on investee

2,108

2,115

614

575

91

100

244

244

282

282

0

0

(1,718)(1,709)

0

0

0

0

Contingent liability release adjustment

(36)

(36)

0

0

0

0

Fair value adjustments and modifications for differencesin accounting policies

(87)

(93)

(8)

(10)

0

0

Elimination of downstream inventory

2

2

0

0

0

(4)

Other

0

0

0

0

0

(3)

513

523

888

847

91

93

Goodwill
PPA adjustments, net of tax

Carrying amount of the investment at 31 December

2

Financial Statements 2023

Airbus25

2. Notes to the IFRS Consolidated Financial Statements
2.2 Basis of Preparation

The development of these investments is as follows:
ArianeGroupMBDA

ATR GIE(In € million)

2023

2022

2023

2022

2023

2022

Carrying amount of the investment at 1 January

523

532

847

676

93

59

Share of results from continuing operations

(13)

(47)

186

146

12

(5)

Share of other comprehensive income

3

38

(20)

117

(2)

8

Dividends received during the year

0

0

(125)

(92)

0

0

Capital increase (decrease)

0

0

0

0

(16)

36

Changes in consolidation

0

0

0

0

0

0

Others

0

0

0

0

4

(5)

513

523

888

847

91

93

Carrying amount of the investment at 31 December

The Company’s share of contingent liabilities and other commitments as of 31 December 2023 relating to MBDA is €438 million(2022: €500 million).

9.2

Investments in Associates

The Company’s interests in associates, accounted for under the equity method, are stated in aggregate in the following table:(In € million)

2023

2022

Carrying amount of the investment at 1 January

381

201

Share of results from continuing operations

56

35

Share of other comprehensive income

(4)

138

Dividends received during the year

(15)

(1)

Capital increase (decrease)

(23)

0

Changes in consolidation

0

6

Others

3

2

398

381

Carrying amount of the investment at 31 December

26 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.3 Segment Information

10.

Related Party Transactions
Loans granted /Other receivables
due atLiabilities at
31 December
31 December

Loans received /Other liabilities
due at31 December

Sales ofgoods andservices andother income

Purchases ofgoods andservices andother expenses

Receivables at
31 December

Total transactions
with associates

354

174

4

35

81

0

Total transactions
with joint ventures

2,868

319

1,249

1,563

0

2,143

Total transactions
with associates

20

177

2

(0)

96

32

Total transactions
with joint ventures

3,073

206

1,273

1,199

2

1,692

(In € million)

2023

2022

Transactions with unconsolidated subsidiaries are immaterial to
the Company’s Consolidated Financial Statements.
As of 31 December 2023, the Company granted guarantees of€104 million to NHI Industries in France (2022: €225 million),
there are no more guarantees granted to Air Tanker Group in
the UK (2022: €129 million).

For information regarding the funding of the Company’s
pension plans, which are considered as related parties, see “–Note 31: Post‑Employment Benefits”.
The information relative to compensation and benefits granted
to Members of the Executive Committee and Board of
Directors are disclosed in “– Note 33: Remuneration”.

2.3 Segment Information
The Company operates in three reportable segments whichreflect the internal organisational and management structure
according to the nature of the products and services provided:– Airbus — Development, manufacturing, marketing and saleof commercial jet passenger aircraft of more than 100 seats,
freighter aircraft and regional turboprop aircraft and aircraftcomponents; aircraft conversion and related services. It also
includes the holding function of the Company and its bankactivities.
– Airbus Helicopters — Development, manufacturing,marketing and sale of civil and military helicopters; provisionof helicopter related services.
– Airbus Defence and Space — Military Air Systems design,development,deliveryandsupportofmannedand unmanned military air systems and their associatedservices. Space Systems design, development, delivery, andsupport of a broad range of civil and defence space systems
for telecommunications, earth observations, navigation,science and orbital systems. Connected Intelligence
provision of services around data processing from platforms,
secure communication and cyber security. In addition, themain joint ventures design, develop, deliver, and support
missile systems and space launcher systems.

2

The following tables present information with respect to theCompany’s business segments. As a rule, inter‑segment
transfers are carried out on an arm’s length basis.
Inter‑segment sales predominantly take place between Airbus
and Airbus Defence and Space and between Airbus
Helicopters and Airbus. Consolidation effects are reported in
the column “Eliminations”.
The Company uses EBIT as a key indicator of its economic
performance.

Financial Statements 2023

Airbus27

2. Notes to the IFRS Consolidated Financial Statements
2.3 Segment Information

11.

Segment Information

The following tables present information with respect to the Company’s business segments. As a rule, inter‑segment transfers arecarried out on an arm’s length basis. Inter‑segment sales predominantly take place between Airbus and Airbus Defence and Spaceand between Airbus Helicopters and Airbus. Consolidation effects are reported in the column “Eliminations”.
The Company uses EBIT as a key indicator of its economic performance.
Business segment information for the year‑ended 31 December 2023 is as follows:
AirbusAirbus Defence andSpace
Helicopters

Eliminations

Consolidated
Airbus

11,495

066,595

(300)

(62)

0

(1,149)46,976

7,037

11,433065,44642,756

3,226

3,530

0

49,512

0

536

4,048

0

4,584

4,220

3,275

3,855

0

11,350

3,610

717

220

56

4,603

depreciation and amortisation(1,597)

(192)

(453)

0

(2,242)

research and development expenses(2,698)

(335)

(275)

51

(3,257)

17

4

245

1

267

(1,076)(479)(1,181)3(2,733)(In € million)

AirbusTotal revenue

47,763

7,337

(787)

Inter‑segment revenue
Revenue
thereofsales of goods at a point in timesales of goods over time
services, including sales of spare parts
Profit before financial result and income taxes (EBIT)
thereofshare of profit from investments accounted for underthe equity method
additions to other provisions (1)Interest result(25)

Other financial result

191

Income taxes(1,156)

Profit for the period

3,613(1) See “– Note 24: Provisions, Contingent Assets and Contingent Liabilities”.

28 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.3 Segment Information

Business segment information for the year‑ended 31 December 2022 is as follows:
AirbusAirbus Defence andSpace
Helicopters

Eliminations

Consolidated
Airbus

11,259059,735

(291)

(59)

0

(972)

40,806

6,757

11,200058,76337,681

3,429

3,369

0

44,479

18

310

4,115

0

4,443

3,107

3,018

3,716

0

9,841

4,800

639

(118)

4

5,325

depreciation and amortisation(1,571)

(189)

(961)

5

(2,716)

research and development expenses(2,607)

(275)

(266)

69

(3,079)

(4)

6

132

0

134

(1,035)

(342)

(788)

(19)

(2,184)(In € million)

AirbusTotal revenue

41,428

7,048

(622)

Inter‑segment revenue
Revenue
thereofsales of goods at a point in timesales of goods over time
services, including sales of spare parts
Profit before financial result and income taxes (EBIT)
thereofshare of profit from investments accounted for underthe equity method
additions to other provisions
Interest result(232)

Other financial result(18)

Income taxes(939)

Profit for the period

4,136

Segment capital expenditures2

31 December(In € million)

2023

2022

Airbus

2,053

1,730

Airbus Helicopters

221

183

Airbus Defence and Space

777

551

0

0

3,051

2,464

Eliminations

Total capital expenditures (1)(1) Excluding expenditure for leased assets.

Financial Statements 2023

Airbus29

2. Notes to the IFRS Consolidated Financial Statements
2.3 Segment Information

31 December

Segment assets

2023

2022

Airbus70,11668,367

Airbus Helicopters

12,531

9,262

Airbus Defence and Space

20,952

17,835

Eliminations(14,053)(8,505)

Total segment assets

89,546

86,959Deferred and current tax assets

3,994

5,387

Securities

8,809

7,775

Cash and cash equivalents

16,46915,82353

0118,871

115,944(In € million)

Unallocated

Assets classified as held for sale

Total assets

Revenue by geographical areas is disclosed in “– Note 12: Revenue and Gross Margin”. Property, plant and equipment bygeographical areas is disclosed in “– Note 20: Property, Plant and Equipment”.
31 December
2023

2022

(In € million)(In %)(In € million)(In %)

Airbus490,81289

390,456

86

Airbus Helicopters

21,525

4

20,774

5

Airbus Defence and Space

42,195

8

38,426

9

(639)

0

(415)

0

553,893100

449,241

100

Segment order backlog

Eliminations

Total

As of 31 December 2023, the total backlog represents theaggregate amount of the transaction price allocated to theunsatisfied and partially unsatisfied performance obligations to
the Company’s customers. Backlog commitments are relative
to the Company’s enforceable contracts with its customers
where it is probable that the consideration will be collected. As
a result, contractual rebates, engines concessions, and variableconsiderations are taken into consideration for measurement.
Contracts stipulated in a currency different than thepresentation currency are translated to euro using the spot rate
as of 31 December 2023 and 2022 respectively. Adjustments
to the value of the backlog could result from changes in thetransaction price.

30 Airbus

Financial Statements 2023

Order backlog valued at €554 billion at the end of 2023 (2022:€449 billion) with an order intake amounting to €186.5 billion(2022: €82.5 billion) and revenues to €65.4 billion (2022:€58.8 billion). The increase mainly reflects a book to bill of 2.8
partly offset by the weakening of the US dollar. In Airbus,
total gross commercial aircraft orders amount to 2,319 units(2022: 1078 units) with net orders of 2,094 aircraft aftercancellations (2022: 820 aircraft) and total deliveries amount to
735 units (2022: 661 units) as of 31 December 2023. In 2024,
approximately 9% of the Airbus backlog in units is expected tobe converted into revenues.

2. Notes to the IFRS Consolidated Financial Statements
2.4 Airbus Performance

2.4 Airbus Performance
12.

Revenue and Gross Margin

Revenue increased by €6,683 million to €65,446 million (2022:€58,763 million). The increase is mainly driven by higher aircraft
deliveries of 735 aircraft (in 2022: 661 aircraft), paired withhigher contributions from Airbus Defence and Space andstrong services business in Airbus Helicopters.

Revenue by geographical areas based on the location of the customer is as follows:
2023

2022

Europe25,73324,261

Asia‑Pacific

18,733

15,380

North America

13,784

13,549Middle East

3,933

2,598

Latin America

1,737

2,086

Other countries

1,526

889

65,44658,763(In € million)

Total

The gross margin decreased by €-527 million to€10,044 million compared to €10,571 million in 2022. It ismainly driven by negative foreign exchange impacts (largely
related to €-1.4 billion US dollar Working Capital mismatch
impact year‑on‑year which mainly reflects the phasing impact
arising from the difference between transaction date anddelivery date), higher costs due to hiring linked to the
production ramp‑up and updated estimates at completion(EAC) of certain space programmes of -0.6 billion, partly offset
by higher deliveries, strong services across the Company’s
segments and the release of compliance‑related provisions. In
2022, it included a non‑recurring positive impact related to there‑measurement of past service cost in the retirement
obligations of €0.4 billion.
The gross margin rate decreased from 18.0% to 15.3%.
In 2023, the Company has delivered eight A400M aircraft.
The Company has continued with development activities
towards achieving the revised capability roadmap. Retrofit
activities are progressing in close alignment with the customer.
In 2022, an update of the contract estimate at completion was
performed and an additional charge of €477 million recorded,
mainly reflecting updated assumptions, including inflation andrisks related to the remaining SOC3 contractual development
milestones to be achieved. In 2023, an additional update of thecontract estimate at completion has been performed and a net
charge of €41 million recorded.

Risks remain on the qualification of technical capabilities andassociated costs, on aircraft operational reliability, on cost
reductions and on securing overall volume as per the revised
baseline.
In addition, the updated EACs of certain space programmes
led to a charge of €-0.6 billion as of 31 December 2023. This
includes an updated assessment of assumptions andestimates related to the remaining revenue and costs tocompletion and the progress of the contracts together with theunderlying programmes status (see “– Note 5: Key Estimatesand Judgements”).

2

In a notice of termination dated 9 June 2022, the Norwegian
Defence Material Agency notified NHIndustries SAS (“NHI”) of
the Norwegian Ministry of Defence’s decision to terminate its
contract for the supply of 14 NH90 helicopters. In a press
release dated 10 June 2022, NHI noted it “is extremely
disappointed by the decision taken by the Norwegian Ministryof Defence and refutes the allegations being made against the
NH90 as well as against [NHI].” NHI considers the termination
to be legally groundless and reserves its right to take anynecessary legal action to challenge it. The parties are working
towards resolving this matter, with a mediation process having
been initiated during the second quarter of 2023.

Financial Statements 2023

Airbus31

2. Notes to the IFRS Consolidated Financial Statements
2.4 Airbus Performance

13.

Research and Development Expenses

Research and development expenses increased by €+178 million to €3,257 million compared to €3,079 million in
2022 mainly due to ramp‑up in activities to prepare thetechnologies of the future.

14.

Other Income and Other Expenses

Other income decreased by €-228 million to €243 million
compared to €471 million in 2022. In 2022, it included aninsurance income of €200 million linked to the launch failure of
the two satellites Pléiades Neo 5 and 6 in December 2022 (see“– Note 20: Property, Plant and Equipment”).

15.

Research and development expenses mainly reflect thedevelopment of latest generation commercial aircraft
programmes, including the A321 XLR and A350 Freighter.

Other expenses decreased by €-381 million to €-209 million
compared to €-590 million in 2022, mainly due to the impact of€-437 million linked to the launch failure of the two satellites
Pléiades Neo 5 and 6 in December 2022 (see “– Note 20:
Property, Plant and Equipment”).

Share of Profit from Investments Accounted for under the Equity
Method and Other Income from Investments
2023

2022

Share of profit from investments in joint ventures

211

99

Share of profit from investments in associates

56

35

Share of profit from investments accounted for under the equity method

267

134

Other income from investments

36

58(In € million)

Share of profit from investments under the equity method and other income from investments increased by €+111 million to€303 million compared to €192 million in 2022, mainly linked to higher share of result from the Company’s main joint ventures(ArianeGroup, MBDA and ATR GIE, see “Note 9.1 – Investments in Joint Ventures”).

32 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.4 Airbus Performance16.

Total Financial Result

Interest income derived from the Company’s asset management and lending activities is recognised as interest accrues, using theeffective interest rate method.
2023

2022

Interest income

728

180

Interest expense

(753)

(412)

thereof Interests on European Governments’ refundable advances

(120)

(133)

Total interest result

(25)

(232)

Change in fair value measurement of financial instruments

39

(346)

Foreign exchange translations on monetary items

37

(99)

Unwinding of discounted provisions(3)

8

Others118

419

Total other financial result

191

(18)

Total

166

(250)

(In € million)

Total financial result improved by €+416 million to €166 million compared to €-250 million in 2022. The financial result mainlyreflects a positive impact from the revaluation of certain equity investments.

17.

Income Taxes

The expense for income taxes is comprised of the following:(In € million)

2023

2022

Current tax expense

(892)

(536)

Deferred tax expense

(264)

(403)

(1,156)

(939)

Total

2

Main income tax rates and main changes impacting the Company:(Rate in %)

2022

2023

2024

> 2025

Netherlands

25.80

25.80

25.80

25.80

France

25.83

25.83

25.83

25.83

Germany

30.00

30.00

30.00

30.00

Spain

25.00

25.00

25.00

25.00

UK (1)

19.00

25.00

25.00

25.00

(1) A tax law has been enacted in 2022 increasing the rate for income taxes to 25.00% from April 2023 and beyond.

On 19 December 2023, the government of the Netherlands, where the parent company is incorporated, enacted the Pillar Two
income taxes legislation effective from 1 January 2024. Based on its assessment, the Company does not expect a material
exposure to Pillar Two.

Financial Statements 2023

Airbus33

2. Notes to the IFRS Consolidated Financial Statements
2.4 Airbus Performance

The following table shows a reconciliation from the theoretical income tax (expense) using the Dutch corporate tax rate to thereported income tax (expense):(In € million)

2023

2022

Profit before income taxes

4,769

5,075

Corporate income tax rate

25.8%

25.8%

Expected (expense) for income taxes(1,230)(1,309)Effects from tax rate differentials / Change of tax rate

(45)

39

Capital gains and losses on disposals / mergers

20

0Income from investment and associates

57

29

Tax credit

48

41

Change in valuation allowances (1)

(67)

53

Tax contingencies

76

156

Other non‑deductible expenses and tax‑free income

(15)

52

(1,156)(939)

Reported tax (expense)(1) Reassessments of the recoverability of deferred tax assets based on future taxable profits.

The income tax expense amounts to €-1,156 million (2022:€-939 million) and corresponds to an effective income tax rateof 24.2%. This includes impacts from the tax‑free revaluation ofcertain equity investments under IFRS 9, tax risk updates anddeferred tax assets impairments. As a result of a corporate
reorganisation in Germany, a prior year deferred tax asset
impairment was partially reversed for €237 million, out of which€160 million recorded in the income statement and €77 million
in other comprehensive income.
As the Company controls the timing of the reversal of
temporary differences associated with its subsidiaries (usuallyreferred to as “outside basis differences”) arising from yet
undistributed profits and changes in foreign exchange rates, itdoes not recognise a deferred tax liability. For temporary

34 Airbus

Financial Statements 2023

differences arising from investments in associates the Company
recognises deferred tax liabilities. The rate used reflects theassumptions that these differences will be recovered from
dividend distribution unless a management resolution for thedivestment of the investment exists at the closing date. For
joint ventures, the Company assesses its ability to control the
distribution of dividends based on existing shareholder
agreements and recognises deferred tax liabilities accordingly.
As of 31 December 2023, the aggregate amount of temporary
differences associated with investments in subsidiaries,
branches and associates and interests in joint arrangements,
for which deferred tax liabilities have not been recognised,amounts to €230 million.

2. Notes to the IFRS Consolidated Financial Statements
2.4 Airbus Performance

Deferred taxes on net operating losses (“NOLs”), trade tax loss carry forwards and tax credit carry forwards are:(In € million)

Other 31 December 31 December
countries
2023
2022

FranceGermany

Spain

UK

NOL

48

2,732

95

1,465

4,193

8,533

8,161

Trade tax loss carry forwards

0

3,108

0

0

0

3,108

3,719

Tax credit carry forwards

0

0

215

0

1

216

225

Tax effect

12

884

238

366

1,048

2,548

2,506

Valuation allowances

(8)

(421)

(100)

(104)

(984)

(1,617)(1,670)

Deferred tax assets on NOLs
and tax credit carry forwards

4

463

138

262

64

931

836

NOLs, capital losses and trade tax loss carry forwards are indefinitely usable under certain restrictions in France, Germany, the UK
and Spain. They are usable for 20 years in Canada. In Spain, R&D tax credit carry forwards will expire after 18 years.
Roll forward of deferred tax:
(In € million)

2023

2022

Net deferred tax assets at 1 January

4,519

4,207

Deferred tax expense in income statement

(264)

(403)

Deferred tax recognised directly in AOCI

(915)

935

Deferred tax on remeasurement of the net defined benefit pension plans

(240)

(320)

Others

(13)

100

3,087

4,519

2023

2022

(35)

(24)

Cash flow hedges

1,276

2,180

Deferred tax on remeasurement of the net defined benefit pension plans

1,566

1,806

Total

2,807

3,962

Net deferred tax assets at 31 December

Details of deferred tax recognised cumulatively in equity are as follows:(In € million)

Financial assets at fair value through OCI

Financial Statements 2023

Airbus235

2. Notes to the IFRS Consolidated Financial Statements
2.4 Airbus Performance

Deferred income taxes as of 31 December 2023 are related to the following assets and liabilities:
31 December
2023

Other
movements

Movement throughincome statement

Deferred tax
assets(liabilities)

OCI /IAS 19Others (1)R&D tax
credits

Deferred tax
benefit(expense)

Deferred tax
assets(liabilities)

(287)

0

3

0

(153)

(437)

Property, plant and equipment(1,046)

0

(2)

0

944

(104)

Investments and other long‑term financial assets

1,423

1

0

0

273

1,697

Inventories

2,642

0

0

0

543

3,185

Receivables and other assets(1,414)

(70)

(145)

0

(36)

(1,665)Prepaid expenses

10

0

0

0

(11)

(1)

Provisions for retirement plans

302

(298)

(2)

0

(366)

(364)

Other provisions

(53)

0

(7)

0

176

116

2,500

(925)

84

0

(1,492)

167

(33)

0

(1)

0

(150)

(184)

NOLs and tax credit carry forwards

2,506

0

(24)

(9)

75

2,548

Deferred tax assets (liabilities) before
offsetting

6,550(1,292)

(94)

(9)

(197)

4,958

Valuation allowances on deferred tax assets(2,031)

137

58

32

(67)

(1,871)

Net deferred tax assets (liabilities)

4,519(1,155)

(36)

23

(264)

3,087

1 January2023(In € million)

Intangible assets

Liabilities
Deferred income(1) “Others” mainly comprises changes in the consolidation scope and foreign exchange rate effects.

36 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.4 Airbus Performance

Deferred income taxes as of 31 December 2022 are related to the following assets and liabilities:
1 January
2022

Movement throughincome statement

Other
movements

31 December
2022

Others (1)R&D tax
credits

Deferredtax benefit(expense)

Deferredtax assets(liabilities)

0

(26)

0

41

(287)

(764)

0

(1)

0

(281)

(1,046)

Investments and other long‑term financial assets

1,113

0

6

0

304

1,423

Inventories

2,165

0

(1)

0

478

2,642

Receivables and other assets

(683)

1,986

4

0

(2,721)(1,414)

8

0

(1)

0

3

10

1,083

(770)

43

0

(54)

302

617

0

24

0

(694)

(53)

Liabilities

1,107

(900)

(4)

0

2,297

2,500

Deferred income

(247)

0

2

0

212

(33)

NOLs and tax credit carry forwards

2,519

0

23

5

(41)

2,506

Deferred tax assets (liabilities) before
offsetting

6,616

316

69

5

(456)

6,550

Valuation allowances on deferred tax assets(2,409)

299

(20)

46

53

(2,031)

Net deferred tax assets (liabilities)

4,207

615

49

51

(403)

4,519

Deferred tax
assets(liabilities)

OCI /IAS 19Intangible assets(302)

Property, plant and equipment(In € million)

Prepaid expenses
Provisions for retirement plans
Other provisions(1) “Others” mainly comprises changes in the consolidation scope and foreign exchange rate effects.

18.

Earnings per Share

2
2023

2022

Profit for the period attributable to equity owners of the parent (Net income)€3,789 million€4,247 million

Weighted average number of ordinary shares

788,720,779

787,080,579

€4.80

€5.40

Basic earnings per share

Diluted earnings per share – The Company’s dilutive potential ordinary shares are equity‑settled Performance Shares relating toLong‑Term Incentive Plans (“LTIP”).
In 2023, a total of 1,039,820 equity‑settled Performance Shares was considered in the calculation of diluted earnings per share.
LTIP 2023 plan has been excluded from the calculation because of its antidilutive effect.
2023

2022

Profit for the period attributable to equity owners of the parent (Net income),
adjusted for diluted calculation€3,789 million€4,247 million

Weighted average number of ordinary shares (diluted)

789,760,599

787,753,485

€4.80

€5.39

Diluted earnings per share

Financial Statements 2023

Airbus37

2. Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

2.5 Operational Assets and Liabilities
19.

Intangible Assets

Intangible assets comprise (i) goodwill (see “– Note 7: Scope of Consolidation”), (ii) capitalised development costs (see “– Note 4:
Material Accounting Policies”) and (iii) other intangible assets, e.g. internally developed software and acquired intangible assets.
Intangible assets with finite useful lives are generally amortised on a straight‑line basis over their respective estimated useful lives(three to ten years) to their estimated residual values.
31 December 2023 and 2022 comprise the following:
31 December 2023
Gross amount(In € million)

31 December 2022

Amortisation /Impairment Net book value

Gross amountAmortisation /Impairment

Net book value

Goodwill

14,183(1,042)

13,141

14,205(1,040)13,165

Capitalised development
costs

3,165

(1,459)

1,706

2,801

(1,319)

1,482

Other intangible assets

5,305(3,223)

2,082

5,350

(3,229)2,121

22,653(5,724)

16,92922,356(5,588)

16,768Total

Net Book Value(In € million)

Balance at
1 January
2023

Exchangedifferences

Changes in
consolidation
scope Reclassification
Additions

Balance at
Amortisation / 31 December
2023
Disposals
Impairment

Goodwill

13,165

(12)

0

(13)

0

0

0

13,141

Capitalised
development
costs

1,482

2

377

0

8

0

(164)

1,706

Other
intangible
assets

2,121

(52)

206

22

24

(8)

(230)

2,082

16,768

(62)

583

9

32

(8)

(394)

16,929Balance at
1 January
2022

Exchangedifferences

Goodwill

13,028

10

0

127

0

0

0

13,165

Capitalised
development
costs

1,286

(12)

319

0

(1)

0

(110)

1,482

Other
intangible
assets

2,053

89

160

159

5

(7)

(338)

2,121

16,367

87

479

286

4

(7)

(448)

16,768Total(In € million)

Total

Changes inConsolidation
scope Reclassification
Additions

Balance at
Amortisation / 31 December
2022
Disposals
Impairment

Intangible assets increased by €+161 million to €16,929 million (2022: €16,768 million). Intangible assets mainly relate to goodwillof €13,141 million (2022: €13,165 million). Based on management’s best estimate, there is no impact on the useful life ofcapitalised development costs resulting from the Company’s journey towards sustainable aerospace (see “– Note 3: Climate
Impacts”).

38 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

Capitalised Development Costs
The Company has capitalised development costs in the amount of€1,706 million as of 31 December 2023 (€1,482 million as of
31 December 2022), for Airbus programmes (€880 million), Airbus

Defence and Space (€517 million) and Airbus Helicopters(€309 million).

Impairment Tests
Each year the Company assesses whether there is anindication that a non‑financial asset or a cash generating unit(“CGU”) to which the asset belongs may be impaired. In
addition, intangible assets with an indefinite useful life,
intangible assets not yet available for use and goodwill aretested for impairment annually, irrespective of whether there is
any indication for impairment. An impairment loss is recognisedin the amount by which the asset’s carrying amount exceeds its
recoverable amount. For the purpose of impairment testing,any goodwill is allocated to the CGU or group of CGUs in a
way that reflects the way goodwill is monitored for internalmanagement purposes.
The discounted cash flow method is used to determine therecoverable amount of a CGU or the group of CGUs to which
goodwill is allocated. The discounted cash flow method isparticularly sensitive to the selected discount rates andestimates of future cash flows by management. Discount rates
are based on the weighted average cost of capital (“WACC”)
for a CGU or the groups of CGUs. The discount rates arecalculated based on a risk‑free rate of interest and a market
risk premium. In addition, the discount rates reflect the current

market assessment of the risks specific to each group of CGUs
by taking into account specific peer group information on beta
factors, leverage and cost of debt. Consequently, slightchanges to these elements can materially affect the resulting
valuation and therefore the amount of a potential impairment
charge.
These estimates are influenced by several assumptions
including the growth rate of CGUs used in the computation of
the terminal value, the increase of deliveries in the coming
years, the availability and composition of future defence andinstitutional budgets, and foreign exchange fluctuations or
implications arising from the volatility of capital markets. Cashflow projections take into account past experience andrepresent management’s best estimate of future developments
which align with the Company’s climate‑related commitments.
The Company tested the intangible assets for which anindicator of impairment was identified. In particular, theCompany tested the intangible assets associated with certain
aircraft and space programmes and no material impairment
was recorded.

As of 31 December 2023 and 2022, goodwill was allocated to CGUs or group of CGUs and is summarised in the following
schedule:
AirbusAirbus Defence andSpace
Helicopters(In € million)

AirbusGoodwill as of 31 December 2023

10,803

184

Goodwill as of 31 December 2022

10,816199

Eliminations

Consolidated
Airbus2,154

0

13,1412,150

013,165

2

The goodwill mainly relates to the creation of the Company in 2000 and the Airbus Combination in 2001.
The annual impairment tests performed in 2023 led to no impairment charge.
The Company performed sensitivity tests in order to confirm the recoverability of its long‑lived assets, and no reasonably possible
changes in the main assumptions used would cause the value in use of the goodwill to fall below its carrying value.

General Assumptions Applied in the Planning Process
The basis for determining the recoverable amount is the value
in use of the CGUs.
Cash flow projections used for the impairment testing are
based on both the operative planning which represents theCompany’s WB2°C scenario through embarking an array ofinvestments and expenses, and management’s best estimateof the impact of climate‑related commitments over thelong‑term horizon. It incorporates the strategic pathways (see“Note – 3. Climate impacts”) in its assumptions as well as
investments to decarbonise mobile and stationary industrial
operations.

Financial Statements 2023

Airbus39

2. Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

The operative planning, is based on the following key
assumptions which are relevant for all CGUs:– increase of expected future labour expenses of 4.5% for2024 including an inflation rate of 4.5%;– future interest rates projected per geographical market, for
the European Monetary Union, the UK and the US;– future exchange rate of 1.125 US$/€ for 2024 to convert ineuro the portion of future US dollar which is not hedged (see“– Note 37: Financial Instruments”).
General economic data derived from external macroeconomic
and financial studies have been used to derive the general key
assumptions.
In addition to these general planning assumptions, the following
additional CGU specific assumptions, which represent
management’s current best assessment as of the date of these
Consolidated Financial Statements, have been applied.

Airbus– The planning takes into account both the current market
conditions and Airbus’ production rate, and includes
management’s best estimates of the progressive increase inaircraft deliveries over the operative planning period.
– The period beyond the operative plan horizon wasconsidered through long‑term projections and a terminal
value with a perpetual growth rate of 2%, aligned with Airbus

SBTi commitments and the baseline for the WB2°C scenario.
– The carrying value and planned cash flows of the CGU
Airbus are materially influenced due to the significant hedge
portfolio.
– Cash flows are discounted using a euro weighted pre‑tax
WACC of 13.5% (2022: 14.1%).

Airbus Helicopters– The planning takes into account the evolution ofprogrammes based upon the current backlog and anassessment of order intake for platforms and services.

according to market forecasts, around 6,900 Civil &Parapublic helicopters and 6,800 Military helicopters are
expected to be delivered globally.

– Long‑term commercial assumptions in respect of market
share, deliveries and market value are based on the latest
helicopter market forecast. The global helicopter market isdemonstrating continued signs of recovering towards
pre‑COVID‑19 levels, despite continued geopoliticalinstabilities and economic volatility. Over the next ten years,– In the absence of long‑term financial reference, expectedcash flows generated beyond the planning horizon are
considered through a terminal value with a perpetual growthrate of 1%.
– Cash flows are discounted using a euro weighted pre‑tax
WACC of 12.4% (2022: 13.1%).

Airbus Defence and Space– Overall the defence and space markets are expected to havegrowth during the period of the operative planning horizon.
– Business growth is underpinned by growing defence andspace opportunities. Underlying performance is improved byfocusing on project delivery, cost control and efficiency.

40 Airbus

Financial Statements 2023

– In the absence of long‑term financial reference, expectedcash flows generated beyond the planning horizon are
considered through a terminal value, with a perpetual growthrate of 1%.
– Cash flows are discounted using a euro weighted pre‑tax
WACC of 11.2% (2022: 11.5%).

2. Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

20.

Property, Plant and Equipment

Property, plant and equipment is valued at acquisition or manufacturing costs less accumulated depreciation and impairment losses.
Items of property, plant and equipment are generally depreciated on a straight‑line basis. The following useful lives are assumed:
Buildings

10 to 50 years

Site improvements

6 to 30 years

Technical equipment and machinery

2 to 20 years

Jigs and tools (1)5 years

Other equipment, factory and office equipment

2 to 10 years(1) If more appropriate, jigs and tools are depreciated using the number of production or similar units expected to be obtained from the tools (sum‑of‑the‑units method).

Property, plant and equipment as of 31 December 2023 and 2022 comprises the following:
31 December 2023
Gross Depreciation /amountImpairment(In € million)

31 December 2022
Net book
value

Gross Depreciation /amountImpairment

Net book
value

Land, leasehold improvements and buildings,
including buildings on land owned by others

10,948(5,783)

5,165

10,536(5,539)4,997

Technical equipment and machinery

22,416(15,587)

6,829

21,982(15,286)

6,696

Other equipment, factory and officeequipment (1)3,955(3,108)

847

3,932

(3,107)825

Construction in progress

2,720

0

2,720

2,241

0

2,241

Right‑of‑use assets (2)

2,616

(975)

1,641

2,578

(832)

1,746

42,654(25,453)

17,201

41,269(24,764)

16,505Total(1) Includes the net book value of aircraft under operating lease (see “– Note 27: Sales Financing Transactions”).
(2) The net book value of Land and Buildings under Right‑of‑use assets amounts to €1,493 million.

2

Net Book Value
Changes in
consolidation
scope Reclassification

Balance at
Depreciation / 31 December
2023
Disposals
Impairment

Balance at
1 January
2023

Exchangedifferences

AdditionsLand, leasehold
improvements
and buildings,
includingbuildings on land
owned by others

4,997

5

109

3

379

(23)

(306)

5,165

Technical
equipment andmachinery

6,696

(19)

442

9

841

(19)

(1,119)

6,829

Other equipment,
factory and officeequipment

825

(6)

131

5

96

(15)

(190)

847

Constructionin progress

2,241

(1)

1,766

0

(1,264)

(22)

0

2,720

Right‑of‑use
assets

1,746

(24)

181

12

(26)

(30)

(218)

1,641

16,505

(45)

2,629

29

26

(109)

(1,833)

17,201(In € million)

Total

Financial Statements 2023

Airbus41

2. Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

Changes inConsolidation
scope Reclassification
Additions

Balance at
Depreciation / 31 December
2022
Disposals
Impairment

Balance at
1 January
2022

Exchangedifferences

Land, leasehold
improvements
and buildings,
includingbuildings on land
owned by others

5,020

(20)

21

4

227

(21)

(234)

4,997

Technical
equipment
and machinery

7,088

10

310

2

942

(44)

(1,612)

6,696

Other equipment,
factory and officeequipment(In € million)

840

10

299

6

62

(215)

(177)

825

Constructionin progress

1,890

(5)

1,479

0

(1,123)

0

0

2,241

Right‑of‑use
assets

1,698

33

308

0

(29)

(40)

(224)

1,746

16,536

28

2,417

12

79

(320)

(2,247)

16,505

Total

Property, plant and equipment increased by €+696 million to €17,201 million (2022: €16,505 million). Property, plant andequipment include right‑of‑use assets for an amount of €1,641 million as of 31 December 2023 (2022: €1,746 million).
For details on assets related to lease arrangements on sales financing, see “– Note 27: Sales Financing Transactions”.

Property, Plant and Equipment by Geographical Areas
31 December(In € million)

2023

2022

France

7,919

7,423

Germany

4,286

4,124

UK

1,478

1,433

Spain

1,285

1,267

United States

868

791

Canada438

421

Other countries

927

1,046

17,201

16,505Total

42 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

The Company as lessee
The Company leases mainly real estate assets, cars andequipment (such as land, warehouses, storage facilities andoffices).
Short‑term leases and leases of low‑value assets refer mainly toIT equipment (e.g. printers, laptops and mobile phones) andother equipment.
The Company incurred interest expense on lease liabilities of€37 million. The expense in relation to short‑term and low‑value
assets is insignificant.
There are no significant variable lease payments included in the
Company’s lease arrangements.
The discount rate used to determine the right‑of‑use asset andthe lease liability for each country and leased asset is
calculated based on the incremental borrowing rate atinception of the lease. The Company calculated the rateapplicable to each lease contract on the basis of the lease
duration.
The maturity analysis of lease liabilities, based on contractual
undiscounted cash flows is shown in “– Note 37.1: Financial
Risk Management”.

21.

Real estate leases
The Company leases land and buildings mainly for its
operational business warehouses including logistic facilities,
offices, production halls and laboratories. The major leases arelocated in France, Germany, the US, Canada and China. As
lease contracts are negotiated on an individual basis, leaseterms contain a wide range of different terms and conditions.
Leases are typically made for a fixed period of 3‑25 years andmay include extension, termination and other options, which
provide operational flexibility to the Company.

Vehicle leases
The Company leases cars for management and otherfunctions. Vehicle leases typically run for an average period of
three years and do not provide renewal options.

Other leases
The Company also leases IT equipment, machinery and otherequipment that combined are insignificant to the total leased
asset portfolio.

Off‑Balance Sheet Commitments
Commitments related to property, plant and equipment
comprise contractual commitments for future capital
expenditures and contractual commitments for purchases of“Land, leasehold improvements and buildings including
buildings on land owned by others” (€1,345 million as of
31 December 2023, 2022: €1,144 million).

Other Investments and Other Long‑Term Financial Assets
31 December(In € million)

2023

2022

Other investments

2,798

2,641

Other long‑term financial assets

1,921

1,549

Total non‑current other investments and other long‑term financial assets

4,719

4,190

795

665

5,514

4,855

Current portion of other long‑term financial assets

Total

Other investments mainly comprise the Company’s
participations and include the remaining investment in Dassault
Aviation (9.90%, 2022: 9.90%) amounting to €1,483 million at
31 December 2023 (2022: €1,309 million).

2

Other long‑term financial assets and the current portion ofother long‑term financial assets include other loans in theamount of €2,601 million as of 31 December 2023 (2022:€2,129 million), and the sales financing activities in the form offinance lease receivables and loans from aircraft financing. The
increase is mainly reflecting additional loans in Airbus bank.

Financial Statements 2023

Airbus43

2. Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

22.

Contract Assets and Contract Liabilities, Trade Receivables
and Trade Liabilities

Contract assets represent the Company’s right toconsideration in exchange for goods or services that theCompany has transferred to a customer when that right isconditioned by something other than the passage of time (e.g.
revenue recognised from the application of the PoC method
before the Company has a right to invoice).
Contract liabilities represent the Company’s obligation totransfer goods or services to a customer for which theCompany has received consideration, or for which an amountof consideration is due from the customer (e.g. advancepayments received).
Net contract assets and contract liabilities are determinedfor each contract separately. For serial contracts, contract
liabilities are presented in current contract liabilities, if revenues
are expected within the next twelve months or material
expenses for the manufacturing process have alreadyoccurred. For long‑term production contracts (e.g.

governmental contracts such as A400M, Tiger, NH90), contract
liabilities are classified as current when the relating inventories
or receivables are expected to be recognised within the normal
operating cycle of the long‑term contract.
Trade receivables arise when the Company provides goods orservices directly to a customer with no intention of trading thereceivable. Trade receivables include claims arising fromrevenue recognition that are not yet settled by the debtor. Trade
receivables are initially recognised at their transaction prices
and are subsequently measured at amortised cost less any
allowances for impairment. Gains and losses are recognised in
the Consolidated Income Statement when the receivables are
derecognised and impaired.
Impairment and allowances of trade receivables andcontract assets are measured at an amount equal to thelife‑time expected loss as described in “– Note 37: Financial
Instruments”.

Contract Assets, Contract Liabilities and Trade Receivables
Significant changes in contract assets and contract liabilities during the period are as follows:
2023

2022

Contract
assetsContract
liabilities

Contract
assetsContract
liabilities

Revenue recognised that was included in the contract liability balanceat 1 January-(26,175)-(23,494)

Increases due to cash received, excluding amounts recognised
as revenue (1)-29,198-26,797

Transfers from contract assets recognised at 1 January(2,168)-(2,798)-

Increase as a result of changes in the measure of progress

2,509

-

3,034

-

(In € million)(1) Including final payments received from customers and others parties in anticipation.

As of 31 December 2023, trade receivables amounting to €227 million (2022: €301 million) will mature after more than one year.
The respective movement in the allowance for expected credit losses in respect of trade receivables and contract assets during theperiod was as follows:(In € million)

2023

2022

Allowance balance at 1 January

(380)

(363)

Utilisations / disposals and business combinations

86

56

Additions

(65)

(73)

(359)

(380)

Allowance balance at 31 December

44 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

Trade Liabilities
Tradeliabilitiesof€14,323
million(2022:€13,261 million) increased by €+1,062 million, mainly driven byhigher volume in Airbus due to ramp‑up.
As of 31 December 2023, trade liabilities amounting to €87 million(2022: €86 million) will mature after more than one year.
Similar to previous years, the Company has supported its
suppliers concerning supply chain financing arrangements. As of
31 December 2023, these arrangements have no impact in the23.

Consolidated Financial Statements. The range of payment due
dates is not impacted by the supplier finance arrangements. The
Company evaluates such suppliers’ early payment arrangementswith a financing third party against a number of indicators toassess whether the payable continues to hold the characteristics
of a trade payable or should be classified as borrowings; these
indicators include whether the payment terms exceed customary
payment terms in the industry. As of 31 December 2023, thepayables subject to supplier financing arrangements do not meetthe criteria to be reclassified as borrowings.

Inventories
31 December 2023
Gross amount(In € million)

31 December 2022

Write‑down Net book value

Gross amount

Write‑down

Net book value

Raw materials andmanufacturing supplies

5,025

(739)

4,286

4,387

(643)

3,744

Work in progress

20,648(1,091)

19,55820,484(1,229)19,255

Finished goods and partsfor resale

5,169(1,273)

3,896

5,218

(1,060)4,158

Advance payments
to suppliers

Total

6,061

(60)

6,001

5,114

(69)

5,045

36,904(3,163)33,74135,203(3,001)

32,202Inventories of €33,741 million (2022: €32,202 million) increased by€+1,539 million. This is mostly driven by work in progress, rawmaterials and manufacturing supplies resulting in inventory build
up to support the ramp‑up, partially offset by less finished goods
reflecting higher deliveries. Advance payments made to suppliers
increased by €+956 million to €6,001 million (2022: 5,045 million)
largely due to payments made to suppliers to support Airbus’
ramp‑up and de‑risk the supply chain.

24.

In 2023, write‑downs of inventories in the amount of €-782 million(2022: €-394 million) are recognised in cost of sales, whereas
reversal of write‑downs amounts to €149 million (2022:€243 million). At 31 December 2023, €18,973 million of work inprogress and €3,883 million of finished goods and parts for resale
were carried at net realisable value.

2

Inventories recognised as an expense during the period amount to€41,644 million (2022: €35,710 million).

Provisions, Contingent Assets and Contingent Liabilities

Provisions — The determination of provisions, e.g. for onerous
contracts, program‑related provisions, warranty costs, restructuring
measures and legal proceedings is based on best estimates.

In general, in the aerospace sector, the contractual and technicalparameters considered for provision calculations are complex.
Hence uncertainty exists with regard to the timing and amounts ofexpenses to be taken into account.
31 December(In € million)

2023

2022

Provisions for pensions

2,715

3,509

Other provisions

7,113

7,514

Total

9,828

11,023

thereof non‑current portion

5,667

6,896

thereof current portion

4,161

4,127

Financial Statements 2023

Airbus45

2. Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

As of 31 December 2023, provisions for pensions amount to€2.7 billion (2022: €3.5 billion). The decrease mainly reflects
the improved performance on plan assets and additional
funding put in place in 2023 partly offset by the decrease of the
discount rates in Germany, France, Canada and the UK (see “–Note 31: Post‑Employment Benefits”).
As of 31 December 2023, a non‑current asset of €0.4 billion(2022: €0.6 billion) is accounted for to reflect the surplus in two
pension funds in the UK, the Airbus Section of the participationin BAE Systems Pension Scheme and the Company UK
Pension Scheme (see “– Note 26: Other Assets and Other
Liabilities”).

The French pension reform signed into law in April 2023 andaccounted for as a plan amendment did not have any material
impact on the Company’s Consolidated Financial Statements.
Other provisions decreased mainly due to the utilisation ofprovisions for onerous contracts related to the A400M and
A220 programmes and the release and utilisation ofcompliance‑related provisions. This is partly offset by additional
provisions related to the updates of certain space programmes(see “– Note 12: Revenue and Gross Margin”).

Movements in other provisions during the year were as follows:(In € million)

Increase from
Balance atpassage
1 January Exchangeof time2023 differences

Reclassification /Change inconsolidated
group
Additions

Used

Balance at
31 December
2023
Released

Onerous contracts

1,808

(27)

0

527

(55)

(558)

(57)

1,638

Outstanding costs

1,374

(1)

(1)

562

0

(396)

(106)

1,432

Aircraft financing
risks (1)

5

0

0

0

0

0

(3)

2

Obligation fromservices andmaintenanceagreements

384

0

12

65

0

(72)

(88)

301

Warranties

397

(3)

2

148

0

(71)

(78)

395

Personnel‑related
provisions (2)

743

(3)

5

453

4

(363)

(65)

774

Litigation andclaims (3)

331

0

0

84

(5)

(124)

(183)

103

Asset retirement

147

0

5

5

0

0

(23)

134

Others risks
and charges

2,325

1

(1)

889

(11)

(380)

(489)

2,334

Total

7,514

(31)

22

2,733

(69)

(1,964)(1,092)

7,113(1) See “– Note 27: Sales Financing Transactions”.
(2) See “– Note 30: Personnel‑Related Provisions”.
(3) See “– Note 38: Litigation and Claims”.

Provisions for onerous contracts in 2023 mainly include theutilisation and net presentation of the A400M programme
losses against inventories and the reduction in the A220
programme.
Personnel‑related provisions include restructuring provisions
and other personnel charges. For more details, see “– Note 30:
Personnel‑Related Provisions”.
Provisions for litigation and claims decreased mainly due tothe release of compliance‑related provisions for an amount of€0.1 billion.
Contingent assets and contingent liabilities — The
Company is exposed to technical and commercial contingent
obligations due to the nature of its businesses. To mitigate thisexposure, the Company has subscribed a Global Aviation

46 Airbus

Financial Statements 2023

Insurance Programme (“GAP”). Information required under
IAS 37 “Provisions, Contingent Assets and Contingent
Liabilities” is not disclosed if the Company concludes that
disclosure can be expected to prejudice seriously its position ina dispute with other parties.
For other contingent liabilities, see “– Note 38: Litigation and
Claims” and “– Note 12: Revenue and Gross Margin” (mainly
A400M programme).
Other commitments include contractual guarantees andperformance bonds to certain customers as well as
commitments for future capital expenditures and amounts
which may be payable to commercial intermediaries if future
sales materialise.

2. Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

25.

Other Financial Assets and Other Financial Liabilities

Other Financial Assets
31 December
2023

2022

Positive fair values of derivative financial instruments (1)

897

753

Others25

28

Total non‑current other financial assets

922

781

(In € million)

Receivables from related companies

1,252

1,104

Positive fair values of derivative financial instruments (1)

330

1,141

Others269

297

Total current other financial assets

1,851

2,542

Total

2,773

3,323

(1) See “– Note 37: Financial Instruments”.

Other Financial Liabilities
31 December(In € million)

2023

2022

Liabilities for derivative financial instruments (1)

2,859

6,163

European Governments’ refundable advances (2)

3,671

3,717

185

237

Total non‑current other financial liabilities

6,715

10,117

Liabilities for derivative financial instruments (1)

1,891

3,450

European Governments’ refundable advances (2)

185

140

Liabilities to related companies

183

186

Others310

297

Total current other financial liabilities

2,569

4,073

Total

9,284

14,190

Others2(1) See “– Note 37: Financial Instruments”.
(2) Refundable advances from European Governments are provided to the Company to finance research and development activities for certain projects on a risk‑sharing
basis, i.e. they are repaid to the European Governments subject to the success of the project.

The total net fair value of derivative financial instruments increasedby €+4,196 million to €-3,523 million (2022: €-7,719 million) as aresult of the reduction of the volume of financial instruments andthe weakening of the US dollar (see “– Note 37.4: Notional
Amounts of Derivative Financial Instruments”).

In 2023, the European Governments’ refundable advances
remained stable at €3,856 million (2022: €3,857 million).
The allocation of European Governments’ refundable advances
between non‑current and current presented in the Consolidated
Financial Statements ended 31 December 2023 is based on theapplicable contractual repayment dates.

Financial Statements 2023

Airbus47

2. Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

26.

Other Assets and Other Liabilities

Other Assets
31 December
2023

2022

Cost to fulfil a contract

468

337

Prepaid expenses

129

149

Others (1)

1,257

1,386

Total non‑current other assets

1,854

1,872

Value added tax claims

1,600

1,732

Cost to fulfil a contract

460

448

Prepaid expenses

174

161

(1)

463

509

Total current other assets

2,697

2,850

Total

4,551

4,722

(In € million)

Others(1) As of 31 December 2023, other assets include €874 million of payments to be made to Airbus by suppliers after aircraft delivery (2022: €673 million). They arerecorded as a reduction of cost of goods sold at the time of aircraft delivery. These future payments are discounted to reflect specific contractual terms and repayment
profile.
As of 31 December 2023, a non‑current asset of €373 million (2022: €642 million) is accounted for to reflect the surplus in two pension funds in the UK. The change of€-269 million is mainly explained by actuarial losses on pension obligations from financial assumptions of €-204 million and from experience adjustments of €-75 million
as well as the actuarial losses related to the performance of assets of €-124 million. It is partly offset by the contributions to plan assets of €163 million. (see “–Note 24: Provisions, Contingent Assets and Contingent Liabilities”).

Other Liabilities
31 December(In € million)

2023

2022

Others (1)

450

498

Total non‑current other liabilities

450

498

Tax liabilities (excluding income tax)

740

1,082

Others (1)

2,767

2,721

Total current other liabilities

3,507

3,803

Total

3,957

4,301

(1) “Others” mainly comprises tax (excluding income tax) and personnel liabilities (e.g. Salaries, Social insurance contribution, Liabilities from personnel restructuring).

48 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

27.

Sales Financing Transactions

Sales financing — With a view to facilitating aircraft sales for
Airbus and Airbus Helicopters, the Company may enter intoeither on‑balance sheet or off‑balance sheet sales financing
transactions.
On‑balance sheet transactions where the Company is lessor
are classified as operating leases, finance leases and loans,inventories and to a minor extent, equity investments:(i) operating leases – Aircraft leased out under operating leases
are included in property, plant and equipment at cost lessaccumulated depreciation (see “– Note 20: Property, Plant
and Equipment”). Rental income from operating leases isrecorded as revenue on a straight‑line basis over the term of
the lease;(ii) finance leases and loans – When, pursuant to a financing
transaction, substantially all the risks and rewards ofownership of the financed aircraft reside with a third party,
the transaction is characterised as either a finance lease or aloan. In such instances, revenues from the sale of theaircraft are recorded upon delivery, while financial interest isrecorded over time as financial income. The outstandingbalance of principal is recorded on the Statement of
Financial Position (on‑balance sheet) in long‑term financial
assets, net of any accumulated impairments;(iii) inventories – Second‑hand aircraft acquired as part of acommercial buyback transaction, returned to Airbus after apayment default or at the end of a lease agreement areclassified as inventories held for resale if there is nosubsequent lease agreement in force (see “– Note 23:
Inventories”).
Off‑balance sheet commitments — Financing commitments
are provided to the customer either as backstop commitments
before delivery, asset value guarantees at delivery or counter
guarantees:(i) backstop commitments are guarantees by Airbus, madewhen a customer‑order is placed, to provide financing to thecustomer in the event that the customer fails to securesufficient funding when payment becomes due under theorder. Such commitments are not considered to be part ofGross Customer Financing Exposure as (i) the financing is
not in place, (ii) commitments may be transferred in full orpart to third parties prior to delivery, (iii) past experiencesuggests it is unlikely that all such proposed financings
actually will be implemented and, (iv) Airbus retains the asset
until the aircraft is delivered and does not incur an unusual
risk in relation thereto. In order to mitigate customer credit
risks for Airbus, such commitments typically containfinancial conditions, such as condition precedents, whichguaranteed parties must satisfy in order to benefit
therefrom;date after its delivery. Airbus considers the financial risks
associated with such guarantees to be acceptable, because(i) the guarantee only covers a tranche of the estimatedfuture value of the aircraft, and its level is considered
prudent in comparison to the estimated future value of eachaircraft, and (ii) the exercise dates of outstanding asset value
guarantees are distributed through 2031.
As of 31 December 2023, the nominal value of asset value
guarantees considered as variable considerations under
IFRS 15 provided to beneficiaries amounts to €151 million(2022: €247 million), excluding €9 million (2022: €9 million)
where the risk is considered to be remote. The present value ofthe risk inherent in asset value guarantees where a settlement
is being considered probable is fully provided for and includedin the total of contract liabilities for an amount of €127 million(2022: €236 million) (see “– Note 22: Contract Assets, Contract
Liabilities and Trade Receivables, and Trade Liabilities”).
Exposure — In terms of risk management, the Company
manages its gross exposure arising from its sales financing
activities (“Gross Customer Financing Exposure”) separately for(i) customer’s credit risk and (ii) asset value risk.
Gross Customer Financing Exposure is the sum of (i) thebook value of operating leases before impairment, (ii) the
outstanding principal amount of finance leases or loans due
before impairment, (iii) the guaranteed amounts under financial
guarantees (iv) the book value of second‑hand aircraft for resale
before impairment, and (v) the outstanding value of any otherinvestment in sales financing structured entities before
impairment. This Gross Customer Financing Exposure may
differ from the value of related assets on the Company’s
Statement of Financial Position and related off‑balance sheet
contingent commitments, mainly because (i) assets arerecorded in compliance with IFRS, but may relate totransactions that are financed on a limited recourse basis and(ii) the carrying amount of the assets on the Consolidated
Statement of Financial Position may have been adjusted for
impairment losses.

2

Gross
Customer
Financing
Exposureamountsto
US$ 0.4 billion (€0.3 billion) (2022: US$ 0.4 billion (€0.3 billion)).
Net exposure is the difference between Gross Customer
Financing Exposure and the collateral value. Collateral value isassessed using a dynamic model based on the net present
value of expected future receivables, expected proceeds fromresale and potential cost of default. This valuation model yields
results that are typically lower than residual value estimates by
independent sources in order to allow for what management
believes is its conservative assessment of market conditions
and for repossession and transformation costs. The net
exposure is provided for by way of impairment losses and otherprovisions.

(ii) asset value guarantees are guarantees whereby Airbus
guarantees a portion of the value of an aircraft at a specificFinancial Statements 2023

Airbus49

2. Notes to the IFRS Consolidated Financial Statements
2.5 Operational Assets and Liabilities

Impairment losses and provisions — For the purpose ofmeasuring an impairment loss, each transaction is tested
individually. Impairment losses relating to aircraft underoperating lease and second‑hand aircraft for resale (included ininventory) are recognised for any excess of the aircraft’s
carrying amount over the higher of the aircraft’s value in use
and its fair value less cost to sell. Finance leases and loans aremeasured at fair value, based on the present value of estimatedfuture cash flows (including cash flows expected to be derived
from a sale of the aircraft). Under its provisioning policy forsales financing risk, Airbus and Airbus Helicopters record
provisions as liabilities for estimated risk relating to off‑balance
sheet commitments.
Security — Sales financing transactions, including those thatare structured through structured entities, are generally
collateralised by the underlying aircraft. Additionally, theCompany benefits from protective covenants and from security
packages tailored according to the perceived risk and the legal
environment.

The Company endeavours to limit its sales financing exposureby sharing its risk with third parties usually involving the creationof a structured entity. Apart from investor interest protection,interposing a structured entity offers advantages such as
flexibility, bankruptcy remoteness, liability containment andfacilitating sell‑downs of the aircraft financed. An aircraft
financing structured entity is typically funded on a non‑recourse
basis by a senior lender and one or more providers ofsubordinated financing. When the Company acts as a lender tosuch structured entities, it may take the role of the senior lenderor the provider of subordinated loan. The Company
consolidates an aircraft financing structured entity if it is
exposed to the structured entity’s variable returns and has theability to direct the relevant remarketing activities. Otherwise, it
recognises only its loan to the structured entity under otherlong‑term financial assets. At 31 December 2023 the carrying
amount of its loans from aircraft financing amounts to€85 million (2022: €49 million). This amount also represents theCompany’s maximum exposure to loss from its interest in
unconsolidated aircraft financing structured entities.

On‑Balance Sheet Operating and Finance Leases
The future minimum operating lease payments (undiscounted) due from customers to be included in revenue, and the future
minimum lease payments (undiscounted) from investments in finance leases to be received in settlement of the outstanding
receivable at 31 December 2023 and 31 December 2022 are as follows:
Aircraft underoperating lease

Finance leasereceivables

Not later than one year

65

Later than one year and not later than five years

635

Later than five years

81

18

31 December 2023

9358

Aircraft underoperating lease

Finance leasereceivables

Not later than one year

10

6

Later than one year and not later than five years

48

35

Later than five years

72

21

31 December 2022

130

62

(In € million)(In € million)

Customer Financing Cash Flows
Direct customer financing cash flows amount to €-436 million in 2023 (2022: €-146 million).

50 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

Customer Financing Exposure
The on‑balance sheet assets relating to sales financing, the off‑balance sheet commitments and the related financing exposure (notincluding asset value guarantees) as of 31 December 2023 and 2022 are as follows:
31 December 2023
AirbusAirbus Helicopters(In € million)

31 December 2022
AirbusAirbus Helicopters

Total

Total

Operating leases (1)

93

0

93

102

0

102

Finance leases and loans

122

17

139

101

31

132

Inventories

49

0

49

37

0

37

Other investments

42

0

42

66

0

66

On‑balance sheet customer financing

306

17

323

306

31

337

Off‑balance sheet customer financing

6

2

8

6

2

8

Gross Customer Financing Exposure

312

19

331

312

33

345

Collateral values

(252)

(19)

(271)

(262)

(33)

(295)

Net exposure

60

0

60

50

0

50

Operating leases

0

0

0

0

0

0

Finance leases and loans

(54)

0

(54)

(40)

0

(40)

On‑balance sheet commitments – inventories

(5)

0

(5)

(5)

0

(5)

Off‑balance sheet commitments – provisions (2)

(1)

0

(1)

(5)

0

(5)

Asset impairments, fair value adjustments
and provisions

(60)

0

(60)

(50)

0

(50)

(1) For 2023 and 2022, depreciation amounts to €5 million and €11 million respectively and related accumulated depreciation is €17 million and €14 million respectively.
(2) See “– Note 24: Provisions, Contingent Assets and Contingent Liabilities”.

2

2.6 Employees Costs and Benefits
28.

Number of Employees

AirbusAirbusHelicopters

AirbusDefence andSpaceConsolidated
Airbus31 December 2023

90,032

22,33635,525

147,89331 December 2022

79,13420,80334,330134,267

As of 31 December 2023, the total number of employees amounts to 147,893 (2022: 134,267). The increase mainly reflects
ramp‑up activities and perimeter changes.

Financial Statements 2023

Airbus51

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

29.

Personnel Expenses(In € million)

Wages, salaries and social contributions
Net periodic pension cost

(1)

Total

2023

2022

14,965

13,509414

136

15,37913,645(1) See “– Note 31: Post‑Employment Benefits”.

30.

Personnel‑Related Provisions
Reclassification /Change inconsolidated
group
Additions

Balance at
1 January
2023

Exchangedifferences

Increasefrompassageof timeRestructuring
measures /pre‑retirement
part‑time work

91

(2)

1

36

4

(37)

(17)

76

Other personnel
charges

652

(1)

4

417

0

(326)

(48)

698

Total

743

(3)

5

453

4

(363)

(65)

774

(In € million)

Used

Balance at
31 December
2023
Released

Other personnel charges of €695 million (2022: €652 million) are mainly related to short‑term employee benefits.

31.

Post‑Employment Benefits
31 December(In € million)

2023

2022

Provisions for retirement plans

2,554

3,302

161

207

2,715

3,509

Provisions for deferred compensation

Retirement plans and similar obligations

In addition, a non‑current asset of €373 million has been accounted for to reflect the surplus in two pension funds in the UK, theAirbus Section of the participation in BAE Systems Pension Scheme and the Company UK Pension Scheme (see “– Note 26: Other
Assets and Other Liabilities”).

52 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

Plans description
When Company employees retire, they receive indemnities as
stipulated in retirement agreements, in accordance withregulations and practices of the countries in which it operates.
Provision for deferred compensation represents obligations thatarise if employees elect to convert part of their remuneration orbonus into an equivalent commitment for deferredcompensation which is treated as a defined benefit
post‑employment plan.
France — The French pension system is operated on a “payas you go” basis. Besides the basic pension from the Frenchsocial security system, each employee is entitled to receive acomplementary pension from defined contribution schemes
AGIRC‑ARRCO (Association pour le régime de retraite
complémentaire des salariés and Association générale desinstitutions de retraite des cadres). Moreover, French law
stipulates that employees are paid retirement indemnities in theform of lump sums on the basis of the length of service, which
are considered as defined benefit obligations.
In 2023 the Company implemented a new funding vehicle in
the form of an insurance contract to partially fund theretirement indemnities obligations.
Germany — The Company has a pension plan (P3) for
executive and non‑executive employees in place. Under thisplan, the employer provides contributions for the services
rendered by the employees, which are dependent on theirsalaries in the respective service period. These contributions
are converted into components which become part of theaccrued pension liability at the end of the year. Total benefits
are calculated as a career average over the entire period ofservice. Certain employees that are not covered by this plan
receive retirement indemnities based on salary earned in thelast year or on an average of the last three years of
employment. For some executive employees, benefits are
dependent on the final salary of the respective individual at thedate of retirement and the time period served as an executive.
In 2018, Airbus introduced the new Airbus Pensions Plan(“APP”) with security‑linked benefits in Germany, which all new
entrants after 1 January 2018 will join. Accordingly, the existing
pension plan has been closed for new entrants. As of
1 January 2019, deferred compensation, which is financed by
the employees, is offered exclusively in APP for all employees.
In 2020 the Company transferred about half of the active
population of the P3 plan into APP. With effect as of 1 January
2020 these employees will accrue future benefits under APP
but not in P3 anymore. Benefits related to past service are notaffected by this transfer.
Parts of the pension obligation in Germany are funded by assets
invested in specific funding vehicles. Besides a relief fund(“Unterstützungskasse”), the Company has implemented aContractual Trust Arrangement. The Contractual Trust Arrangement
structure is that of a bilateral trust arrangement. Assets that aretransferred to the relief fund and the Contractual Trust Arrangement
qualify as plan assets under IAS 19.
In the trust arrangements between the trust and the participatingcompanies a minimum funding requirement is stipulated for the
portion of the obligation for deferred compensation, which is
not protected by the pension guarantee association or
Pensions‑Sicherungs Verein in case of an insolvency of thesubsidiaries concerned. Some portions of the obligation must
be covered with securities in the same amount, while otherportions must be covered by 115%.
United Kingdom — The Company UK Pension Scheme (“theScheme”) was implemented by Airbus Defence andSpace Ltd., Stevenage (UK) as the principal employer. This plancomprises all eligible employees of Airbus Defence andSpace Ltd. as well as all personnel, who were recruited by oneof the Company subsidiaries located in the UK andparticipating in the scheme. The major part of the obligation isfunded by scheme assets due to contributions of theparticipating companies. The Scheme is a registered pension
scheme under the Finance Act 2004. The trustee’s only formal
funding objective is the statutory funding objective under thePensions Act part 3 2004, which is to have sufficient andappropriate assets to cover the Scheme’s obligations. Since
1 November 2013, this plan is generally closed for joiners, whoparticipate in a separate defined contribution plan.
Moreover, the Company participates in the UK in several
funded trustee‑administered pension plans for both executive
and non‑executive employees with BAE Systems being theprincipal employer. The Company’s most significant
investments in terms of employees participating in these BAE
Systems UK pension plans is Airbus Operations Ltd.
Participating Airbus Operations Ltd. employees have continued
to remain members in the BAE Systems UK pension plans dueto the UK pension agreement between the Company and BAE
Systems and a change in the UK pensions legislation enacted
in April 2006.

2

For the most significant of these BAE Systems Pension
Schemes, the Main Scheme, BAE Systems, the Company andthe scheme Trustees agreed on a sectionalisation, which was
implemented on 1 April 2016. Although BAE Systems remains
the only principal employer of the Scheme, the Company has
obtained powers in relation to its section which are the same as
if it were the principal employer.
Based on the funding situation of the respective pension
schemes, the pension plan trustees determine the contribution
rates to be paid by the participating employers to adequately
fund the schemes. The latest funding valuation for the Main
Scheme has been conducted in 2023 and the Main Scheme iscurrently in a surplus situation.
In the event that an employer who participates in the BAE
Systems pension schemes fails or cannot be compelled to fulfil
its obligations as a participating employer, the remaining
participating employers are obliged to collectively take on its
obligations.
The Company considers the likelihood of this event as remote.
However, for the Main Scheme the Company considers that its
obligation is in principle limited to that related to its section.

Financial Statements 2023

Airbus53

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

In addition, the Company has two guarantees to cover its
obligation towards the Scheme and the BAE Systems pension
schemes. To mitigate its exposure, the first guarantee covers
an amount up to GBP 1.25 billion for an unlimited period oftime while the second one covers an uncapped amountterminating in 2046, respectively for the Scheme and the BAE
Systems Pension Schemes.

Canada — Airbus Canada Limited Partnership sponsors
defined benefit plans for its salaried, hourly and executive
employees. In 2020, Airbus acquired Stelia Aeronautics
Saint‑Laurent Inc. which sponsors a defined benefit plan for its
salaried and hourly employees.

Actuarial risks for the Company
The Defined Benefit Obligation (“DBO”) exposes the Company
to actuarial risks, including mainly the following ones:
Market price risk — The return on plan assets is assumed tobe the discount rate derived from AA‑rated corporate bonds. If
the actual return rate of plan assets is lower than the applied
discount rate, the net liability increases accordingly. Moreover,the market values of the plan assets are subject to volatility,
which also impacts the net liability.
Interest rate risk — The level of the DBO is significantly
impacted by the applied discount rate. The low interest rates inrecent years, particular in the euro‑denominated market
environment, lead to a relatively high net pension liability. If
there is again a decline in returns of corporate bonds, the DBO
will increase in future periods, which might only be offset

partially by the positive development of market values of those
corporate bonds included in plan assets. Generally, the pension
obligation is sensitive to movements in the interest rate leading
to volatile results in the valuation.
Inflation risk — The pension liabilities can be sensitive to
movements in the inflation rate, whereby a higher inflation rate
could lead to an increasing liability. Since some pension plans
are directly related to salaries, increases in compensations
could result in increasing pension obligations. For the deferredcompensation plan P3, which is financed by the employees afixed interest rate has been agreed.
Longevity risk — The pension liabilities are sensitive to the life
expectancy of its members. Rising life expectancies lead to anincrease in the valuation of the DBO.

Main average assumptions
The weighted average assumptions used in calculating the actuarial values of the most significant retirement plans as of
31 December 2023 are as follows:
Pension plans inGermany

FranceParticipation in
BAE Systems
Pension Scheme
in the UK

UK

Canada

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

Discount rate

3.4

3.6

3.4

3.7

4.5

4.8

4.5

5.0

4.6

5.3

Rate of compensation increase

3.4

3.4

3.0

3.0

3.2

3.3

3.2

3.4

3.0

3.0

Rate of pension increase

2.4

2.4

2.1

2.1

2.9

3.0

3.0

3.1

2.0

2.0

Inflation rate

2.4

2.4

2.1

2.1

3.0

3.2

3.1

3.3

2.0

2.0

(Rate in %)Discount rate — For Germany and France, the Company
derives the discount rate used to determine the DBO fromyields on high quality corporate bonds with an AA rating. The
determination of the discount rate is based on the iBoxx €Corporates AA bond data and uses the granularity of single
bond data in order to receive more market information from thegiven bond index. The discount rate for the estimated durationof the respective pension plan is then extrapolated along theyield curve. In the UK, it is determined with reference to the fullyield curve of AA‑rated sterling‑denominated corporate bondsof varying maturities. In Canada the discount rate is determinedbased on the yield of corporate bonds with AA rating. The

54 Airbus

Financial Statements 2023

salary increase rates are based on long‑term expectations of
the respective employers, derived from the assumed inflation
rate and adjusted by promotional or productivity scales.
Rate of pension increase — Rates for pension payment
increases are derived from the respective inflation rate for theplan.
Inflation rates — Inflation rate for German and French planscorresponds to the expected long‑term increase in cost ofliving. In the UK, the inflation assumptions are derived byreference to the difference between the yields on index‑linked
and fixed‑interest long‑term government bonds.

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

Mortality tables — For the calculation of the German pension
obligation, the “2018 G” mortality tables (generation tables) as
developed by Professor Dr. Klaus Heubeck are applied, while
the disability rates of the Heubeck Tables have been reduced to30%, to align with actual observation.

For the UK schemes, the Self‑Administered Pensions S2 mortality
tables based on year of birth (as published by the Institute ofActuaries) is used in conjunction with the results of an investigation
into the actual mortality experience of scheme members. In
France, Institute for French Statistics (“INSEE”) tables are applied.

Funded status for retirement and deferred compensation plans
The development of the funded status for retirement and deferred compensation plans is set out below:
DBO

Plan assets

Total

Pensionplans oftheCompany

Participation in
BAE Systems
PensionScheme in the
UK

Total

Total
Fundedstatus

4,598

22,297(11,353)(3,872)(15,225)

7,072

(25)

72

47

0

0

0

47

217

85

302

(141)

(72)

(213)

89

141

(3)

138

0

0

0

138

changes in financial assumptions(5,246)(2,056)(7,302)000(7,302)changes in experience adjustments

613

370

983

0

0

0

983

0

0

0

1,911

740

2,651

2,651

Pensionplans oftheCompany

Participation in
BAE Systems
PensionScheme in theUK

17,699Service cost (including past service
cost)Interest cost and income(In € million)

Balance at 1 January 2022

Remeasurements: actuarial (gains)and losses arising fromchanges in demographic assumptions

plan assets
Changes in consolidation, transfersand others

(34)

0

(34)

9

0

9

(25)

Benefits paid

(442)

(121)

(563)

159

121

280

(283)

Contributions by employer and otherplan participants

80

1

81

(348)

(254)

(602)

(521)

Foreign currency translation
adjustments

(67)

(178)

(245)

80

183

263

18

Balance at 31 December 2022

12,936

2,768

15,704(9,683)(3,154)(12,837)

2,867

Service cost (including past service
cost)

282

38

320

0

0

0

320

Interest cost and income

454

138

592

(342)

(156)

(498)

94

changes in demographic assumptions

(7)

15

8

0

0

0

8

changes in financial assumptions

365

172

537

0

0

0

537

changes in experience adjustments

(209)

101

(108)

0

0

0

(108)

0

0

0

(515)

107

(408)

(408)

Changes in consolidation, transfersand others

(67)

0

(67)

(12)

0

(12)

(79)

Benefits paid

(437)

(113)

(550)

156

113

269

(281)

80

1

81

(567)

(107)

(674)

(593)

2

Remeasurements: actuarial (gains)and losses arising fromplan assets

Contributions by employer and otherplan participantsForeign currency translation
adjustments
Balance at 31 December 2023

16

57

73

(23)

(65)

(88)

(15)

13,413

3,177

16,590(10,986)(3,262)(14,248)

2,342

Financial Statements 2023

Airbus55

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

The figures shown in the table include the surplus in two
pension funds in the UK, resulting from a defined benefit
obligation and assets of €4,360 million and €4,733 million thathave been accounted as a non‑current asset.
In the figures shown in the table, amounts of €1,873 million and€1,712 million are included for the defined benefit obligationand plan assets for deferred compensation plans in Germany(2022: €1,715 million and €1,508 million).
The past service cost included in the service cost amounts to€-6 million and €-400 million as of 31 December 2023 and2022, respectively. The employer contributions amount to€668 million and €6 million for other plan participants as of
31 December 2023 (2022: €595 million and €6 million
respectively).
Additionally, the Company considers liabilities for lump sum
payments (one‑off payment or lump sum instalments) under theGerman P3 pension arrangement in the total amount of€194 million and €183 million as of 31 December 2023 and2022, respectively.

The funding of the plans is as follows:
31 December
2023

2022

DBO

Plan
assets

368

0

873

0

Funded pension plans (partial)

16,222(14,248)

14,831(12,837)

Total

16,590(14,248)

15,704(12,837)(In € million)

Unfunded pension plans

As of 31 December 2023, provisions for pensions decreasedby €-794 million. It mainly reflects the actuarial gains related tothe strong performance of assets of €533 million and thecontributions to plan assets of €505 million. It is partly offset by
the actuarial losses on pension obligations from financial
assumptions of €334 million, driven by the decrease in the
discount rates.
The French pension reform signed into law in April 2023 andaccounted for as a plan amendment did not have any material
impact on the Company’s Consolidated Financial Statements.
In 2023, employer contributions for retirement and deferredcompensation plans amount to €668 million. This consists of:– payments made to the pension and deferred compensationplans of the Company in Germany, UK and Canada of

DBO Plan assets€247 million (2022: €342 million), mainly relating to aContractual Trust Arrangement in Germany of €171 million(2022: €171 million), the relief fund in Germany of €0 million(2022: €99 million) and the Company UK scheme of€57 million (2022: €57 million);– payments made of €314 million (2022: €0 million) to partiallyfund the retirement indemnities provisions in France;– payments made to the participation in BAE Systems Pension
Scheme in the UK of €107 million (2022: €254 million).
Contributions of approximately €500 million are expected to bemade in 2024.
The weighted average duration of the DBO for retirement plansand deferred compensation is 15 years at 31 December 2023
(31 December 2022: 15 years).

Pension obligations by countries and type of beneficiaries
The split of the DBO for retirement plans and deferred compensation between active, deferred and pensioner members for themost significant plans is as follows:
ActiveDeferredPensioner

Germany

45%

10%

45%

France

99%

0%

1%

UK

50%

20%

30%

Participation in BAE System Pension Scheme (Main Scheme)

37%

14%

49%

Canada

82%

2%

16%

56 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

Pension obligations and plan assets by countries and type of plans
The split of the pension obligations and plan assets for retirement plans and deferred compensation for the most significant plans is
as follows:
Present value of DBO

Plan assets

Deferred
Retirement Compensation
plans
plans

Deferred
Retirement Compensation
plans
plans

Germany

82%

18%

80%

20%

France

100%

0%

100%

0%

UK

100%

0%

100%

0%

Participation in BAE System Pension Scheme (Main Scheme)

100%

0%

100%

0%

Canada

100%

0%

100%

0%

Pension obligations sensitivity to main assumptions
The following table shows how the present value of the DBO of retirement plans and deferred compensation would have been
influenced by changes in the actuarial assumptions as set out for 31 December 2023:
Change in actuarial
assumptions

Impacton DBO
Change at 31 December
2023

2022

16,59015,704

Increase by 0.5%-point(1,109)(1,051)

Decrease by 0.5%-point

1,242

1,178

Increase by 0.25%point

88

84

Decrease by 0.25%point

(83)

(80)

Increase by 0.25%point

246

259

Decrease by 0.25%point

(238)

(250)

Increase by one year

394

366

Present value of the DBO
Discount rate

Rate of compensation increase

Rate of pension increase

Life expectancy

Sensitivities are calculated based on the same method (present
value of the DBO calculated with the projected unit credit
method) as applied when calculating the post‑employment
benefit obligations. The sensitivity analyses are based on achange of one assumption while holding all other assumptions

2

constant. This is unlikely to occur in practice and changes ofmore than one assumption may be correlated leading todifferent impacts on the DBO than disclosed above. If theassumptions change at a different level, the effect on the DBO
is not necessarily in a linear relation.

Financial Statements 2023

Airbus57

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

Plan assets allocation
The fair value of the plan assets for retirement plans and deferred compensation can be allocated to the following classes:
2023

2022

QuotedpricesUnquoted
prices

Total

QuotedpricesUnquoted
pricesTotal

Europe

475

0

475

565

0

565

Rest of the world

167

0

167

128

0

128

Emerging markets

206

0

206

417

0

417

1,195

976

2,171

1,959

898

2,857

Corporates

3,842

1,027

4,869

2,502

1,114

3,616

Governments

3,067

0

3,067

2,370

0

2,370

640

0

640

725

0

725

Commodities

0

0

0

0

0

0

Hedge funds

0

0

0

0

0

0

Derivatives

0

(14)

(14)

0

(278)

(278)

Property

0

935

935

0

767

767

320

193

513

202

144

346

0

1,219

1,219

0

1,324

1,324

9,912

4,336

14,248

8,868

3,969

12,837(In € million)

Equity securities

Global
Bonds

Pooled investments vehicles

Cash and money market funds
OthersBalance at 31 December

The majority of funded plans apply broadly an asset‑liability
matching framework. The strategic asset allocation of the planstakes into account the characteristics of the underlying
obligations. Investments are widely diversified, such that the
failure of any single investment would not have a material
impact on the overall level of assets. A large portion of assets in
2023 consists of fixed income and equity instruments, although

58 Airbus

Financial Statements 2023

the Company also invests in property, private markets andother alternatives. The Company reassesses the characteristicsof the pension obligations from time to time or as required by
the applicable regulation or governance framework. Thistypically triggers a subsequent review of the strategic asset
allocation.

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

Funded status by countries
The funded status for retirement and deferred compensationplans can be allocated to the countries as follows:

Germany

FranceUK

CanadaParticipation in BAE
Systems Pension
Scheme in the UK

DBO

10,360

1,353

1,183

517

3,177

16,590Plan assets

8,768

333

1,471

414

3,262

14,248

Balance at 31 December 2023

1,592

1,020

(288)

103

(85)

2,342

DBO

10,157

1,243

1,100

436

2,768

15,704

Plan assets

7,957

19

1,356

351

3,154

12,837

Balance at 31 December 2022

2,200

1,224

(256)

85

(386)

2,867

Pension plans of the Company(In € million)

Total

Contributions to defined contribution plans
Employer’s contribution to state and private pension plans, mainly in Germany and France, are to be considered as defined
contribution plans. Contributions in 2023 amounted to €723 million (2022: €894 million).

32.

Share‑based Payment

Share‑based compensation — From 2016 to 2020, theCompany operated a Performance Units and Performance
Shares Plan. Performance Units qualify as a cash‑settled
share‑based payment plan under IFRS 2 and Performance
Shares qualify as an equity‑settled share‑based payment
plan under IFRS 2.
Since 2021, the Company operates only a Performance Shares
Plan.
Plans granting Restricted Units, Performance Units and/or
Performance Shares are also mentioned as “LTIP” in thefollowing notes.
Since 2018, the Company operates also exceptional grants of
Performance and Restricted Units as well as Performance andRestricted Shares under an Equity Pool. Such exceptional
grants are validated by specific resolutions from the Board of
Directors and qualify as cash‑settled or equity‑settled
share‑based payment plans under IFRS 2. Accounting
principles and methodology are the ones applied for LTIP as
described below.
For cash‑settled plans, provisions for associated services
received are measured at fair value by multiplying the numberof units expected to vest with the fair value of one LTIP unit at
the end of each reporting period, taking into account the extent

to which the employees have rendered service to date.
Changes of the fair value are recognised as personnel
expenses of the period, leading to a re‑measurement of theprovision. The fair value of Performance Units is re‑measured ateach closing date as far as they are not paid.
For equity‑settled plans, compensation expense is measured at
the grant date at the fair value by multiplying the number ofshares expected to vest by the fair value of one LTIP sharetaking into account the extent to which the employees haverendered service to date. The compensation expense isaccounting for over the vesting period of each LTIP
equity‑settled plans.

2

The fair value of each LTIP share (equity or cash‑settled plans)is determined using a forward pricing model and is basedon publicly available risk‑free rate, volatility and dividend rate.
Besides the equity‑settled plans described above, theEmployee Share Ownership Plan (“ESOP”) is an additional
equity‑settled share‑based payment plan. Under this plan, theCompany offers its employees Airbus SE shares at fair value
matched with a number of free shares based on a determining
ratio. The fair value of shares provided is reflected as personnel
expenses in the Company’s Consolidated Income Statementwith a corresponding increase in equity.

Financial Statements 2023

Airbus59

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

32.1

LTIP

The Company hedges the share price risk inherent in the
cash‑settled LTIP units by entering into equity swaps where thereference price is based on the Airbus SE share price. To theextent that cash‑settled LTIP units are hedged, compensation
expense recognised for these units will effectively reflect thereference price fixed under the equity swaps. In order to avoid
any dilution of its current shareholders out of equity‑settled LTIP
units, the Company used to perform share buybacks to meetits obligations to its employees, following the decisions of theBoard of Directors and approval of the Annual General Meeting(“AGM”).
In 2023, compensation expenses for LTIPs (incl. Equity Pool)
including the effect of the equity swaps amounted to€72 million (2022: €49 million), among which €22 million for
cash‑settled plans (2022: €21 million) and €50 million forequity‑settled plans (2022: €28 million).
As of 31 December 2023, provisions of €72 million (2022:€57 million) relating to LTIP units (cash‑settled) have beenaccounted for.
The lifetime of the Performance Units as well as Performance
Shares is contractually fixed (see the description of therespective tranche in the following table). For the units, themeasurement is next to other market data, mainly affected by
the share price as of the end of the reporting period (€139.78
as of 29 December 2023) and the lifetime of the units.

The fair value of units and shares granted in the frame of the LTIP 2023 plan is as follows:
Expected vesting date(In € per unit / share granted)

May 2027 – Performance Shares

60 Airbus

Financial Statements 2023

Fair value of
Performance Shares
141.802. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

The principal characteristics of the LTIPs as at 31 December 2023 are summarised below:

Grant date (1)LTIP 2018 (7)LTIP 2019 (8)LTIP 2020 (9)LTIP 2021

LTIP 2022

LTIP 2023

30 October
2018

29 October
2019

28 October
2020

15 December
2021

14 December
2022

14 December
2023

Performance Units and Performance Shares Plan
Units/Shares

SharesSharesSharesSharesNumber of units /shares granted (2)278,376 281,181 247,508 247,508 420,004 420,004

520,870649,373

558,055

Fair value at grant
date (3)84.09 /
83.28

85.01

112.83 /108.44112.9251.04 /
46.98

55.49

89.83

110.85141.80Fair Value of
Performance Units
as of 31 December
2023 (3)-n.a.

125.20 /137.30n.a.

128.00 /116.48

n.a.

n.a.

n.a.

n.a.

Number of units /shares granted
through Equity
Pool (4)

6,664

6,664

4,343

4,252

2,473

2,473

19,693

19,747---55,050-575,805 575,805

512,255

658,409558,055

1,603

1,785

1,579

1,581

Number of units /shares outstanding (5)Units

Total number of
eligible beneficiaries

Shares

Units

1,626

Shares

Units

1,576

The Performance Units and Performance Shares will vest if the participant is still employed by a companyof the Group at the respective vesting dates and upon achievement of mid‑term business performance.
Vesting schedule is made up of two payments over two years for units, one date of delivery for shares.

Vesting conditions
Limited Share priceper unit at vesting
dates to (6)€213.88n.a.

€244.12n.a.

€136.08

n.a.

n.a.

n.a.

n.a.

Expected
Vesting dates

50%
each
in June
2022
and
June
2023

100%
in May
2022

50%
each
in June2023
and in
June
2024

100%
in May
2023

50%
each
in June2024
and in
June
2025

100%
Expectedin May2024

100%
in May 2025

100%
in May 2026

100%
in May 2027

-

-

-

-

404

404

247

-

-

55,982

109,802

-

-

-

-

-

Number ofaccelerated vested
units / shares (10)Number of vested
units / shares

130,089 132,120

2(1) Date, when the vesting conditions were determined.
(2) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on‑target performance achievement; up to a
maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT of the Company) during the performance
period, the Board of Directors can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions(additional vesting condition).
(3) Values are provided for units corresponding per vesting date.
(4) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions.
(5) Including shares granted through the Equity Pool, if applicable and applicable performance achievement as per footnote 7,8,9 below.
(6) Corresponds to 200% of the respective reference share price. Overall, the pay‑out for Performance Units is limited to a total amount of 250% of the units originallygranted, each valued with the respective reference share price of €73.81 (for LTIP 2017), €106.94 (for LTIP 2018), €122.06 (for LTIP 2019), €68.04 (for LTIP 2020).
(7) Based on performance achievement of 50% for Performance Units under LTIP 2018.
(8) Based on performance achievement of 50% for Performance Units under LTIP 2019.
(9) Based on performance achievement of 150% for Performance Units under LTIP 2020.
(10) Accelerated vesting following the death of a beneficiary.

Additionally, the Board of Directors approved in 2023 the exceptional grant of 988 Restricted Units and 23,414 Restricted Shares(2022: 1,836 Units and 47,035 Shares) under the Equity Pool with an average fair value of €115.28. In 2023, 1,138 Units and
14,117 Shares have vested (2022: 4,826 Units and 2,165 Shares).
The number of units granted under the Equity Pool and outstanding as of 31 December 2023 is 1,419 Units and 63,368 Shares(2022: 1,836 Units and 56,857 Shares).

Financial Statements 2023

Airbus61

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

32.2

ESOP

In 2023, the Board of Directors approved a new ESOP
scheme, like in 2022.
Eligible employees were able to purchase a fixed number ofpreviously unissued shares at fair market value (5, 10, 15, 30,
60 or 100 shares in 2023 and 2022). The Company matchedeach fixed number of shares with a number of the Company
free shares based on a determined ratio (5, 9, 12, 20, 35 and55 free shares, respectively in 2023 and 2022). During acustody period of at least one year, employees are restrictedfrom selling the shares, but have the right to receive all
dividends paid. Employees who directly purchased theAirbus SE shares have, in addition, the ability to vote at theAnnual Shareholder Meetings. The subscription price was
equal to the closing price at the Paris stock exchange on

15 February 2023 (2022: 16 March 2022) and amounted to€119.06 (2022: €106.82). Investing through a mutual fund led
to a price which corresponds to the average price at the Paris
stock exchange during the 20 trading days immediately
preceding 15 February 2023 (2022: 16 February 2022),
resulting in a price of €116.68 (2022: €114.01).
In 2023, the Company issued and sold 1,314,184 ordinary
shares (2022: 1,296,252) with a nominal value of €1.00 each.
In 2023, the Company issued and distributed 876,419
matching ordinary shares (2022: 824,793) with a nominal valueof €1.00 each. Compensation expense (excluding social
security contributions) of €118 million (2022: €82 million) was
recognised in connection with ESOP in 2023.

33.

Remuneration

33.1

Remuneration – Executive Committee

The Company’s key management personnel consists of Members of the Executive Committee and Non‑Executive Board Members.
The Chief Executive Officer (“CEO”), who chairs the Executive Committee, is the sole Executive Board Member. The annual
remuneration and related compensation costs of the key management personnel as expensed in the respective year can besummarised as follows:
2023

2022

Salaries and other short‑term benefits (including bonuses)

18.3

19.4

Post‑employment benefit costs

2.4

4.0

Share‑based remuneration (“LTIP award”, including associated hedge result)

9.5

4.1

0

0

Other benefits

0.3

0.3

Social charges (1)

5.7

6.0

Short‑term benefits (including social charges)

3.1

2.3

Total expense recognised

39.3

36.1

(In € million)

Executive Committee, including Executive Board Member

Termination benefits

Non‑Executive Board Members(1) Costs of benefits provided through applicable mandatory collective and social security plans are accounted for among social charges.

Salaries and Other Short‑Term Benefits (Including Bonuses)
The amount of bonuses is based on estimated performance achievement as at the balance sheet date and difference between
previous year estimation and actual pay‑out in the current year. Outstanding short‑term benefits (bonuses) at year‑end 2023 for
Executive Committee Members based on estimated performance achievement at year‑end was €9.5 million (2022: €10.2 million).
In order to support the Company’s target of reducing its Scope 1 and 2 carbon emissions by 63% by 2030, the Board of Directors
decided to translate this ambition into a concrete objective and include the CO2 reduction target in the collective variable
remuneration of the CEO and all executives.

62 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

Post‑Employment and Other Long‑Term Benefits
The post‑employment and other long‑term benefits defined obligation for the Executive Committee, including the CEO, amounted
to €15.0 million at 31 December 2023 (2022: €16.7 million). The disclosed post‑employment and other long‑term benefits reflect
the total outstanding balance for all Executive Committee Members in charge at the end of the respective balance sheet date.

Share‑Based Remuneration (“LTIP Award”)
The share‑based payment expenses result from not yet forfeited units and shares granted to the Executive Committee Members
under the Company’s LTIP which are re‑measured at fair value according to the methodology described in “– Note 32:
Share‑based Payment”.
For LTIP 2023, the Members of the Executive Committee were granted 65,939 Performance Shares (2022: 70,562). The respective
fair value of these Shares at grant date was €10.3 million (2022: €8.8 million).
As of 31 December 2023, provisions of €8.6 million (2022: €5.4 million) relating to LTIP have been recognised. The total number ofoutstanding Performance Units and Performance Shares granted to the current Members of the Executive Committee amounted to70,992 and 273,325 respectively at 31 December 2023 (2022: 81,183 Performance Units and 206,211 Performance Shares).
In 2023, the expenses related to share based remuneration have significantly increased versus 2022 due to (i) the significant Airbus
share price increase (from €111.02 end of 2022 to €139.78 end of 2023) which impacted the Performance Units plans and (ii) the
higher performance achievement of unvested LTIP plan considered in the 2023 expense than the one for unvested LTIP planconsidered in the 2022 expense which had been negatively impacted by the Covid.

Termination Benefits
The following benefits apply to Executive Committee Members, except the CEO.
In the case of contract termination, the Executive Committee Members are entitled to an indemnity equal to 1.5 times the Total
Target Remuneration (defined as Base Salary and target Annual Variable Remuneration) with respect to applicable local legal
requirements, if any.
This will not apply if the Executive Committee mandate is terminated for cause, in case of dismissal, if the Executive Committee
Member resigns or has reached retirement age.
The Executive Committee Members’ contract includes a non‑compete clause which applies for a minimum of one year and can beextended at the Company’s initiative for a further year. The Board of Directors has the discretion to waive or invoke the extension of
the non‑compete clause when legally or contractually possible. The compensation for each year that the non‑compete clauseapplies is equal to 50% of the last Total Annual Remuneration (defined as Base Salary and Annual Variable Remuneration mostrecently paid) with respect to applicable local legal requirements, if any.
Past LTIP awards may be maintained in full or prorated, in such cases as in case of retirement or if a mandate is not renewed by
the Company without cause, pro rata being based on the presence in the Company during performance periods. The vesting ofpast LTIP awards follows the plans’ rules and regulations and is not accelerated in any case. LTIP awards are forfeited for
Executives who leave the Company on their own initiative, but this is subject to review by the Board of Directors.

2

The termination benefits include assumptions about all effective, known or planned terminations to date.

Other Benefits
Other benefits include expenses for Executive Committee Members’ medical, death and disability coverage, company car andother usual facilities as applicable.

Financial Statements 2023

Airbus63

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

33.2

Remuneration – CEO

The annual remuneration and related compensation costs of the CEO as expensed in the respective year can be summarised asfollows:
2023

2022

Base salary

1,485,000

1,485,000

Annual variable pay

1,945,350

2,008,800

Post‑employment benefit costs(1,049,054)

1,385,222

Share‑based remuneration (“LTIP award”) (1)1,997,522

1,082,668

00Other benefits

34,96932,734Social charges (2)1,312,061

1,357,922(In €)

Termination benefits(1) Expense related to share‑based payment plans as recognised in the annual period (service period) including the result from the hedge of cash‑settled share‑based
payment (see “– Note 32: Share‑Based Payment”).
(2) Social charges depend on the applicable regulation to the CEO. In France, social charges comprise benefits accrued through mandatory collective and state planssuch as pension, death and disability or medical coverage.

Annual Variable Pay
The annual variable pay is based on estimated performance achievement as at the balance sheet date and difference between theprevious year’s estimation and actual pay‑out in the current year.

Post‑Employment Benefit Costs
Post‑employment benefit costs relate to the aggregated amount of current service and interest costs for defined benefit plan andcompany cost for contributions base plans.
Following the Board decision approved in the AGM 2020, the CEO pension rights are accrued through a defined contributions planfrom 1 January 2020, which coexists with the former defined benefit pension plan.
The accrued pension rights under the former defined benefit plan have been frozen at the end of 2019 and remain unvested until
the retirement date of the CEO. The pension rights arising from the Company’s defined contribution plan are deducted from thefrozen defined pension rights.
As of 31 December 2023, the defined benefit obligation related to the frozen defined benefit commitment amounts to €3,875,518(2022: €6,895,263). This obligation has been accrued in the 2023 Consolidated Financial Statements and will be updated annually
up to the retirement date of the CEO considering additional service cost and future changes on economic assumptions or otherfactors like salary increase.
The decrease in the defined benefit obligation is mainly due to the change in retirement age following the pension reform in France
in 2023. This change has been considered as a plan amendment and leads to the recognition of a profit in EBIT.
For the fiscal year 2023, the cost related to the CEO’s pension rights accrued under Company’s plans during the year represented
a net profit of €1,049,054 composed by an expense of €1,404,951 and the effect of the French pension reform leading to arelease of provision of €2,454,006 (2022: expense of €1,385,222).
The annual cost of pension rights accrued under applicable mandatory collective and state pension plans are accounted for amongsocial charges.

64 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

Share‑based Remuneration
The table below gives an overview of the interests of the CEO, under the various LTIPs of the Company:
LTIP 2018 (1)LTIP 2019

LTIP 2020

LTIP 2021

LTIP 2022

LTIP 2023

Performance Units and Shares

8,416

11,06019,84012,121

14,115

11,619

Revaluation

50%

50%

150%

100%

100%

100%

Performance Units and Shares revalued

4,208

5,531

29,76012,121

14,115

11,619

1,052

1,383

-

-

-

-

-

2,765

-

-

-

-

in cash-1,383

14,880---in shares--

14,88012,121

14,115

11,619

May 2026

May 2027

Granted Date

Vested in 2023
in cashin shares
Outstanding 2023

Vesting scheduleCash‑settled units
Equity‑settled units

For vesting dates, see “– Note 32.1: LTIP”
May 2022

May 2023

May 2024

May 2025(1) 2018 awards were granted before the appointment of the CEO and could vest during the CEO’s mandate.

Vesting of all Performance Units and Performance Shares granted to the CEO is subject to performance conditions.
As of 31 December 2023, provisions of €2,074,739 (2022: €1,301,397) relating to Performance Units have been recognised. The
pay‑out from vested cash‑settled LTIP in 2023 was €304,862 (2022: €226,388) excluding social charges.

Termination Benefits
The termination benefit applicable to the CEO is described in the Company’s Remuneration policy.

Other Benefits
As stipulated in the Company’s Remuneration Policy, the benefits offered to the CEO are similar to the benefits granted to otherexecutives of the Company and comprise, among other matters, medical, death and disability coverage (both through the Frenchsocial security system and mandatory collective Company’s plans), a company car and usual facilities. Costs of benefits provided
through applicable mandatory collective and social security plans are accounted for among social charges. The monetary value ofother benefits provided to the CEO in 2023 amounted to €34,969 (2022: €32,734).

2

The Company has not provided any loans to, advances to and guarantees on behalf of the CEO.

Financial Statements 2023

Airbus65

2. Notes to the IFRS Consolidated Financial Statements
2.6 Employees Costs and Benefits

33.3

Remuneration – Board of Directors

The remuneration of the Non‑Executive Members of the Board of Directors was as follows:
2023

2022

Fixum (1)AttendanceFees (2)

Total

Fixum (1)AttendanceFees (2)

Total

515,000 (3)105,000

620,000 (3)225,000

135,000

360,000

Victor Chu

150,000

62,000212,000

100,000

66,000166,000

Jean‑Pierre Clamadieu

220,000

76,000296,000

140,000

96,500236,500

Ralph D. Crosby, Jr.

150,000

70,000220,000

100,000

100,000

200,000

Mark Dunkerley

190,000

94,000284,000

124,420

112,000

236,420

Stephan Gemkow

160,000

76,000236,000

110,000

98,000208,000

Catherine Guillouard

220,000

63,000283,000

140,000

98,000238,000

Amparo Moraleda

220,000

69,500289,500

140,000

103,000

243,000

Claudia Nemat

150,000

56,500206,500

100,000

76,500176,500

Irene Rummelhoff

150,000

55,000205,000

72,10075,000147,100

Antony Wood (4)141,050

70,000211,050

3,913

10,00013,913Lord Drayson (5)

-

-

-

33,811

15,00048,811

(6)

-

-

-

22,541

5,000

27,5412,266,050

797,000

3,063,050

1,311,785

990,000

2,301,785(In €)

Non‑Executive Board Members
René Obermann

Former Non‑Executive Board Members

Carlos Tavares

Total(1) Fixum includes a base fee for Board membership and the relevant Committee membership as the case may be (Audit Committee, Remuneration, Nomination and
Governance Committee (“RNGC”), Ethics, Compliance and Sustainability Committee (“ECSC”)). The fixum for the year 2023 was paid 50% in January 2023 and 50% in
July 2023. The fixum for the year 2022 was paid 50% in January 2022 and 50% in July 2022 except in relation to the ad hoc Committee for which the full amount was
paid in January 2023.
(2) 2023 attendance fees include the Board of Directors attendance fees and the fees in relation to the relevant Committee (Audit Committee, RNGC and ECSC) meetings.
The Board of Directors attendance fees related to the first semester 2023 were paid in July 2023, those related to the second semester 2023 were paid in
January 2024. The Committees’ attendance fees related to the full year 2023 were paid in January 2024.
(3) Amount before donation by the Chairman of the portion exceeding his fixed remuneration received in 2022.
(4) Member of the Audit Committee since 19 April 2023.
(5) Member of the Board of Directors, the RNGC and the ECSC until 12 April 2022.
(6) Member of the Board of Directors until 12 April 2022.

66 Airbus

Financial Statements 2023

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

2.7 Capital Structure and Financial Instruments
34.

Total Equity

34.1

Equity Attributable to Equity Owners of the Parent

The Company’s shares are exclusively ordinary shares with a par value of €1.00. The following table shows the development of thenumber of shares issued and fully paid:(In number of shares)

2023

2022

Issued at 1 January788,205,008

786,083,690

2,254,426

2,121,318

Issued at 31 December

790,459,434

788,205,008

Treasury shares(3,037,467)(647,500)

787,421,967

787,557,508

Issued for ESOP

Outstanding at 31 December

Holders of ordinary shares are entitled to dividends and to one
vote per share at general meetings of the Company.
Equity attributable to equity owners of the parent (including
purchased treasury shares) amounts to €17,695 million (2022:€12,950 million) representing an increase of €+4,745 million.
This is mainly due to the net income for the period of €+3,789 million and the mark to market revaluation of the hedge
portfolio of €2,390 million partly offset a dividend payment of€-1,421 million (€1.80 per share).

share and a special dividend of €1.00 per share to the 2024
Annual General Meeting taking place on 10 April 2024. The
proposed payment date is 18 April 2024.
Treasury shares represent the amount paid or payable for own
shares held in treasury. During 2023, the number of treasury
stock held by the Company increased to 3,037,467 comparedto 647,500 as of 31 December 2022, mainly due to the sharebuybacks partly offset by vested shares in 2023 under LTIP
2019 (see “– Note 32: Share‑based Payment”). No shares weresold back to the market nor cancelled (2022: 0 shares).

Capital stock comprises the nominal amount of shares
outstanding. The addition to capital stock represents thecontribution for exercised options by employees of €2,254,426(2022: €2,121,318) in compliance with the implemented
ESOPs.

On 19 April 2023, the AGM of the Company authorised theBoard of Directors, for a period expiring at the AGM to be heldin 2024, to issue shares and to grant rights to subscribe forshares in the Company’s share capital for the purpose of:Share premium mainly results from contributions in kind in thecourse of the creation of the Company, cash contributions fromthe Company’s initial public offering, capital increases andreductions due to the issuance and cancellation of shares.

– ESOPs and share‑related LTIPs, provided that such powers
shall be limited to an aggregate of 0.18% of the Company’s
authorised share capital (see “– Note 32: Share‑based
Payment”);

Retained earnings include mainly the profit for the period andthe changes in other comprehensive income fromremeasurements of the defined benefit pension plans net of tax
which amounts to €-284 million in 2023 (2022: €+3,432 million).

– funding the Company and its subsidiaries, provided thatsuch powers shall be limited to an aggregate of 0.3% of theCompany’s authorised share capital (see “– Note 36.3:
Financing Liabilities”).

On 19 April 2023, the Annual General Meeting (“AGM”) decided
to distribute a gross amount of €1.80 per share, which was
paid on 27 April 2023. For the fiscal year 2023, the Board of
Directors will propose the payment of a dividend of €1.80 per

2

For each operation, such powers shall not extend to issuingshares or granting rights to subscribe for shares if there is nopreferential subscription right and for an aggregate issue pricein excess of €500 million per share issuance.

Financial Statements 2023

Airbus67

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 theCompany’s issued share capital at a price per share not lessthan the nominal value and not more than the higher of theprice of the last independent trade and the highest current

34.2

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

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 ofgreat 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

Outlook

Short‑term ratingStandard and Poor’s

A

StableA‑1

Moody’s Investors Services

A2

StableP1

Fitch Rating (unsolicited)A-

StableF1

Rating agency

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, solidbalance sheet as well as its prudent financial policy. Finally, it
reflects the management’s focus on programme execution,
profitability and cash generation improvement.

and Cash used for investing activities less Change of securities,
Contribution to plan assets for pensions, realised Treasury
swaps and bank activities.

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 tolong‑term hedging and to strengthen the Company’s position
as a financially sound counterparty for its customers andsuppliers.

The Company generally satisfies its obligations arising from
ESOPs and Share Incentive Plans (“SIPs”) by issuing newshares. In order to avoid any dilution of its current shareholders
out of LTIPs, the Company performs share buybacks to meetits obligations to its employees, following the decisions of theBoard of Directors and approval of the AGM. Apart from thispurpose, the Company generally does not trade with treasury
shares.

Every year, the Company constructs a five‑year plan used toassess its financial flexibility at current ratings and a value
creation ambition. It is composed of (i) EBIT and (ii) Free CashFlow, which is defined as Cash provided by operating activities

68 Airbus

Financial Statements 2023

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 complies with the capital requirements underapplicable law and its Articles of Association.

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

2022

Cash and cash equivalents

16,46915,823Current securities

1,301

1,762

Non‑current securities

7,508

6,013

Gross cash position

25,27823,598

Short‑term financing liabilities(3,389)(2,142)

Long‑term financing liabilities(10,202)(10,631)(961)(1,394)

10,726

9,431(In € million)

Interest rate contracts (1)Total(1) 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.

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 thatare 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

36.1

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 andrelated cash flows are hence recognised as cash flows fromoperating activities.

Cash and Cash Equivalents

Cash and cash equivalents are composed of the following elements:

2

31 December(In € million)

2023

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

16,46915,823

Total cash and cash equivalents

Only securities with a maturity of three months or less from thedate of the acquisition, that are readily convertible to known
amounts of cash and which are subject to an insignificant riskof 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 inadvance 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 apositive impact from working capital. The latter is driven bylarger contract liabilities reflecting higher advance payments
including significant and anticipated pre‑delivery payments fromcertain customers, partly offset by increase in inventory and a
net negative impact from payments made to suppliers inanticipation.

Financial Statements 2023

Airbus69

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

Cash used for investing activities amounts to €-4.1 billion,
mainly reflecting capital expenditures and investments insecurities.

36.2

Cash used for financing activities amounts to €-1.3 billion andinclude mainly the cash distribution to Airbus SE shareholdersof €-1.4 billion.

Securities

The majority of the Company’s securities consists of debt
securities and are classified at fair value through OCI (see “–Note 37.2: Carrying Amounts and Fair Values of Financial
Instruments”).

and 2022, respectively, are corporate and government bonds
bearing either fixed rate coupons (€9,156 million nominal value;2022: €8,368 million) or floating rate coupons (€0 million
nominal value; 2022: €32 million).

The Company’s securities portfolio amounts to €8,809 millionand €7,775 million as of 31 December 2023 and 2022,
respectively. The security portfolio contains a non‑current
portion of €7,508 million (2022: €6,013 million), and a current
portion of €1,301 million (2022: €1,762 million).

When the Company enters into securities lending or otherfinancing activities that involve the pledging of securities as
collateral, the securities pledged continue to be recognised on
the balance sheet. As of 31 December 2023 and 2022, they
were no securities pledged as collateral for borrowings frombanks.

Included in the securities portfolio as of 31 December 2023

36.3

Financing Liabilities

Financing liabilities include debt obligations towards financial
institutions, issued corporate bonds, deposits made bycustomers of Airbus Bank, borrowings received from joint
ventures and other parties as well as finance lease liabilities.
Financing liabilities are recorded initially at the fair value of theproceeds received, net of transaction costs incurred.
Subsequently, financing liabilities are measured at amortisedcost, using the effective interest rate method with any
difference between proceeds (net of transaction costs) andredemption amount being recognised in total finance income(cost) over the period of the financing liability.

70 Airbus

Financial Statements 2023

Financing liabilities to financial institutions may include liabilities
from securities lending transactions. In securities lendingtransactions, the Company receives cash from its counterparty
and transfers the securities subject to the lending transaction
as collateral. The counterparty typically has the right to sell or
repledge the securities pledged. The amount of cash received
is recognised as a financing liability. The securities pledged are
not derecognised, but remain on the Company’s Statement of
Financial Position.

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

31 December(In € million)

2023

2022

Bonds and commercial papers

8,250

8,681

Liabilities to financial institutions

323

383

Loans

233

75

Lease liabilities

1,396

1,492

Total long‑term financing liabilities

10,202

10,631

Bonds and commercial papers

817

0Liabilities to financial institutions

1

27

Loans

81

83

Lease liabilities

221

242

(1)

2,269

1,790

3,389

2,142

13,591

12,773

OthersTotal short‑term financing liabilities

Total(1) Included in “others” are financing liabilities to joint ventures.

Long‑term financing liabilities, mainly comprising of bonds
and
lease
liabilities, decreased by€-429 million
to€10,202 million (2022: €10,631 million), mainly due to bonds
reclass to short‑term liabilities (EMTN 10 years) partly offset by
the increase in the value of bonds.
Short‑term financing liabilities increased by €+1,247 million
to €3,389 million (2022: €2,142 million) mainly due to the
EMTN 10 years reclass in long‑term financing liabilities andfinancing liabilities to joint ventures.
The Company has several euro‑denominated bonds issued
under its EMTN programme, two stand‑alone US
dollar‑denominated bonds issued on the US institutional market
under Rule 144A and one US Private Placement, outstanding
as of 31 December 2023.
The Company can issue commercial papers under its€11 billion Negotiable European Commercial Paper (“NEuCP”)
programme, its €4 billion Euro Commercial Paper (“ECP”)
programme and its $3 billion US Commercial Paper
programme.

As of 31 December 2023, there were no outstanding
amounts under any of its commercial paper programmes.
On 31 January 2023, the Company signed a lease agreementwith Mobile Airport Authority for a new Final Assembly Line in
Mobile, Alabama. As the lease has not yet commenced, nolease liability was recognised as of 31 December 2023, and nolease payments were made. Accordingly, this transaction had
no impact neither on the IFRS Consolidated Financial
Statement of Cash Flows nor on the Consolidated Statementof Financial Position as of 31 December 2023. In accordancewith IFRS 16 and the Company’s accounting policies for theclassification of interests’ cash flows, payments to be madeover the lease term will be recognised in financing cash flows
and operating cash flows for respectively the principal andinterest payments’ portions of the lease liability. According to
the current project plan, the first tranche of the project is
expected to enter into service in 2024 for a corresponding
amount of around US$0.4 billion. The future discounted cash
outflows amount to US$1 billion, are funded through bonds
issued by the lessor and fully guaranteed by the Company asof 31 December 2023.

Financial Statements 2023

Airbus271

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

The terms and repayment schedules of these bonds and loans are as follows:
Carrying amount(In € million)

Principal
amount31 December(In million)

2023

2022

EMTN 15 years

€500

469

EMTN 10 years€823

EMTN 10 years

Issuance Coupon or
Effective
date interest rate interest rate

Maturity
date

Additional features444

Oct 2014

2.12%

2.21%

Oct 2029

Interest rate swapped
into 3M Euribor +0.84%

817

799

Apr 2014

2.38%

2.42%

Apr 2024

Interest rate swapped
into 3M Euribor +1.40%

€461

436

419

May 2016

0.88%

0.98%

May 2026

Interest rate swapped
into 3M Euribor +0.50%

EMTN 15 years

€900

793

737

May 2016

1.38%

1.50%

May 2031

Interest rate swapped
into 3M Euribor +0.66%

EMTN 5 years

€561

535

515

Mar 2020

1.63%

1,80%

April 2025

Interest rate swapped
into 3M Euribor +2.01%

EMTN 8 years

€611

546

512

Mar 2020

2.00%

2.10%

April 2028

Interest rate swapped
into 3M Euribor +2.15%

EMTN 12 years€1,000822

754

Mar 2020

2,38%

2.49%

April 2032

Interest rate swapped
into 3M Euribor +2.24%

EMTN 20 years€1,000706646June 2020

2.38%

2,44%

Jun. 2040

Interest rate swapped
into 3M Euribor +1.93%

EMTN 6 years

€894

832

792

June 2020

1,38%

1,47%

Jun. 2026

Interest rate swapped
into 3M Euribor +1.66%

EMTN 10 years€1,2501,068

989

June 2020

1.63%

1,74%

Jun. 2030

Interest rate swapped
into 3M Euribor +1.61%

US$ Bond
10 years

US$750641

653

Apr 2017

3.15%

3.20%

Apr 2027

Interest rate swapped
into 1D SOFR

US$ Bond
30 years

US$750651

643

Apr 2017

3.95%

4.02%

Apr 2047

Interest rate swapped
into 1D SOFR +0.31%

ACLP Private
placement

US$830751

778

July 2020,
Dec 2020

1.98%2.54%

2.77%3.09%

July 2026 toJuly 2029

9,067

8,681

Bonds
EuropeanInvestment Bank

€165

165

0

Dec 2023

3M Euribor+0.498%3M Euribor+0.498%Dec. 2038

KfW Bank

€50

48

0

July 2023

3M Euribor+0.59%

3M Euribor+0.59%

Jul. 2029

Others111

410

Liabilities
to financial
institutions

324

410

Total

9,391

9,091

Thereofnon‑current
financing liabilities

8,574

9,091

Thereof current
financing liabilities

817

0

72 Airbus

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

Cash flows

Changes inscope

Foreignexchange
movements

OthersBalance at
31 December 2023

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(In € million)

Bonds and commercial papers

Balance at
1 January 2023

Reconciliation of liabilities arising from financing liabilities as of 31 December 2022 is as follows:
Non‑cash movements

Cash flows

Changes inscope

Foreignexchange
movements

OthersBalance at
31 December 2022

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)12,77337.

Financial Instruments

37.1

Financial Risk Management(In € million)

Bonds and commercial papers

Balance at
1 January 2022

By the nature of its activities, the Company is exposed to avariety of financial risks: (i) market risks, in particular foreignexchange risk, but also interest rate risk, equity price risk andcommodity 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 theirpotential adverse effects on the Company’s operational andfinancial performance.
The financial risk management of the Company is generally
carried out by the Treasury department of the Company under2

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 asignificant portion of its hedging portfolio.

Market Risk
Foreign exchange risk — Foreign exchange risk arises when
future commercial transactions or firm commitments,
recognised monetary assets and liabilities and net investments

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

Financial Statements 2023

Airbus73

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

The Company manages a long‑term hedge portfolio withmaturities of several years covering its net exposure to US
dollar sales, mainly from the commercial activities of Airbus.
This hedge portfolio covers a large portion of the Company’s
firm commitments and highly probable forecasted transactions.
For Airbus, the highly probable criteria of the underlying foreign
currency exposure of cash flow hedges is assessed based on
the IFRS15 backlog value analysis. This consists in reducing
the contractual firm backlog by all deliveries which cannot be
considered as highly probable due to the existence of either
cancellation rights, risk of bankruptcy or other risk of order
restructuring. The latter assessments is taking into accountcustomers’ situation and commercial aspects. The resulting
backlog is further adjusted to the foreign exchange
management hedging horizon. The highly probable underlying
foreign currency exposure is then capped to the production
plan when applicable.
Most of the Company’s revenue is denominated in US dollars,
while a major portion of its costs is incurred in euro and to alesser extent in other foreign currencies. Consequently, to theextent that the Company does not use financial instruments tohedge its exposure resulting from this currency mismatch, its
profits will be affected by changes in the €/US$ exchange rate.
As the Company intends to generate profits primarily from its
operations rather than through speculation on exchange rate
movements, it uses hedging strategies to manage andminimise the impact of exchange rate fluctuations on these
profits.
With respect to its commercial aircraft products, as of 30 June
2018, the Company adopted a new hedge strategy to hedge
its net exposure (US dollar revenue less US dollar cost)
resulting from commercial aircraft deliveries of specific aircraft
types. The strategy more closely aligns hedge accounting withrisk management activities.
Under the new strategy the foreign exchange derivatives usedas hedging instruments are designated as a hedge of a portionof the cash flows received for each of a number of deliveries ofa specific aircraft type that are expected to occur in a given
month and hence will allow the hedge result to move along withthe hedged deliveries in the event of a shift in deliveries.
If such a shift in hedged deliveries occurs, hedge
ineffectiveness will arise to the extent the maturities of thehedging instrument and the expected timing of the hedged
cash flows are no longer perfectly aligned. In order to minimise
such ineffectiveness, the Company will close the timing gap byrolling over hedges to new maturities, using foreign exchange
swap contracts.
In addition, the Company will designate the risk of changes inthe spot element as the hedged risk in order to eliminate theineffectiveness resulting from changes in forward points
between different maturities. The forward element will be
accounted for as a cost of hedging similar to the time value of
options.
Until 30 June 2018, the Company typically hedged firmly
committed sales in US dollar using a “first flow approach”.
Under that approach, the foreign currency derivatives the

74 Airbus

Financial Statements 2023

Company entered into were designated as a hedge of the first
US dollar inflows received from the customer at aircraft delivery
in a given month. The strategy implied that only a portion of the
expected monthly customer payments made at aircraft delivery
were hedged and that a reduction of monthly cash inflows as aresult of postponements or order cancellations had no impact
on the effectiveness of the hedge as long as the actual gross
US dollar cash inflows received at aircraft delivery in a particularmonth exceeded the portion designated as being hedged inthat month. According to the prospective application
requirement of IFRS 9, the fair values of the legacy portfolio inplace at inception of the new strategy continue to be assigned
to the previous first flow hedge regime and remain in the hedge
reserve in OCI, to be recognised in profit or loss only at maturityof the originally hedged cash flows (unless those cash flows are
no longer expected to occur).
As a result of prospective application, the hedging instruments
designated under the new strategy had a non‑zero fair value athedge inception, which might create some small
ineffectiveness.
Another source of ineffectiveness is the counterparty credit risk
inherent in the hedge portfolio. As such, credit risk is absent
from the hedged cash flows. However, since netting
arrangements are in place with all the hedge counterparties
and the Company has a policy of trading with investment grade
counterparties only, the credit risk arising from its hedging
instruments, and associated changes in credit risk, havehistorically been negligible and are expected to remain so.
The Company also hedges its expected foreign currency
exposure arising from US dollar or pound sterling cash outflows
in the commercial aircraft business on a first outflow basis,though to a much lesser extent than US dollar cash inflows.
In military aircraft and non‑aircraft businesses, the Company
hedges inflows and outflows in foreign currencies from firmly
committed or highly probable forecast sales and purchase
contracts. Here, foreign currency derivatives are typicallycontracted in lower volumes; they may be accounted for using
a first flow approach or are designated as hedges of specificagreed milestone payments. The amount of the expected flows
to be hedged can cover up to 100% of the equivalent of the
net US dollar exposure at inception. The coverage ratio
considers the variability in the range of potential outcomestaking into account macroeconomic movements affecting spot
rates and interest rates as well as the robustness of thecommercial cycle.
In situations where the payment dates for hedged firmly
committed cash flows are not fixed and subject to potentiallysignificant delays, the Company may use rollover strategies,
usually involving foreign exchange swaps.
For all foreign currency hedges of future cash flows which
qualify for hedge accounting under IFRS 9, the Company uses
the cash flow hedge model, which requires (i) recognising theeffective portion of the fair value changes of the hedging
derivatives in equity (within OCI) and (ii) recognising the effect of
the hedge in profit or loss when the hedged cash flows affectprofit or loss.

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

In addition, the Company hedges currency risk arising fromfinancial assets or liabilities denominated in currencies otherthan the euro, including foreign currency receivable andpayable accounts, as well as foreign currency denominatedfunding transactions or securities. The Company applies hedge
accounting if a mismatch in terms of profit or loss recognition of
the hedging instrument and hedged item would otherwise
occur. Frequently, however, the currency‑induced gains orlosses of the hedging instrument and the hedged item match interms of profit or loss recognition (“natural hedge”), so nohedge accounting is required. Sometimes such gains or losses
may end up in different sections of the income statement (suchas operating profit for the hedged item and financial result for
the hedging instrument). If so, the Company may choose topresent the gains or losses of both the hedging instrument andthe hedged item in the same income statement line item if
certain formal requirements are met.
As hedging instruments, the Company primarily uses foreign
currency forwards, foreign currency options and to a minor
extent non‑derivative financial instruments. A hedge ratio of 1:1
is applied by the Company.
The Company also has foreign currency derivative instruments
which are embedded in certain purchase contracts
denominated in a currency other than the functional currency of
any substantial party to the contract, principally in US dollar
and pound sterling. If such embedded derivatives are required
to be accounted for separately from the host purchase
contract, related gains or losses are generally recognised inother financial result. However, if the embedded derivatives
qualify for hedge accounting, the Company might choose to
designate them as a hedging instrument in a hedge of foreign
currency risk, in which case they are accounted for under the
cash flow hedge model as described above.
Interest rate risk — The Company uses an asset‑liability
management approach with the objective to limit its interest
rate risk. It undertakes to match the risk profile of its
interest‑bearing assets with those of its interest‑bearing
liabilities. The remaining net interest rate exposure is managed
through several types of interest rate derivatives, such as
interest rate swaps and interest rate futures contracts, in orderto minimise risks and financial impacts.
The vast majority of related interest rate hedges qualify forhedge accounting, and most of them are accounted for under
the fair value hedge model. As a result, both the fair valuechanges of these derivatives and the portion of the hedged
items’ fair value change that is attributable to the hedged
interest rate risk are recognised in profit or loss, where they

offset to the extent the hedge is effective.
The Company has applied the relief introduced by theamendments made to IFRS 9 in September 2019 on hedge
accounting, having the effect that the IBOR reform should notcause hedge accounting to terminate.
The Company invests in financial instruments such as overnight
deposits, certificates of deposits, commercial papers, othermoney market instruments and short‑term as well as
medium‑term bonds. For its financial instruments portfolio, theCompany has an Asset Liability Management Committee inplace that meets regularly and aims to limit the interest rate risk
on a fair value basis through a value‑at‑risk approach, fromwhich results a hedge ratio that is however not actively steered.
Commodity price risk — The Company is exposed to risk
relating to fluctuations in the prices of commodities used in the
supply chain. It manages these risks in the procurement
process and to a certain extent uses derivative instruments inorder to mitigate the risks associated with the purchase of raw
materials. To the extent that the gains or losses of the derivative
and those of the hedged item or transaction do not match interms of profit or loss, the Company applies cash flow hedge
accounting to the derivative instruments, with a hedge ratio of
1:1.
Equity price risk — The Company is to a small extent invested
in equity securities mainly for operational reasons. Its exposure
to equity price risk is hence limited. Furthermore, it is exposed
under its LTIP to the risk of the Company share price increases.
The Company limits these risks through the use of equity
derivatives that qualify for hedge accounting and have been
designated as hedging instruments in cash flow hedges, with ahedge ratio of 1:1.
Sensitivities of market risks — The approach used tomeasure and control market risk exposure of the Company’s
financial instrument portfolio is, amongst other key indicators,
the value‑at‑risk model (“VaR”). The VaR of a portfolio is theestimated potential loss that will not be exceeded over a
specified period of time (holding period) from an adverse
market movement with a specified confidence level. The VaR
used by the Company is based upon a 95% confidence level
and assumes a five‑day holding period. The VaR model used ismainly based on the so‑called “Monte‑Carlo‑Simulation”
method. The model generates a wide range of potential futurescenarios for market price movements by deriving the relevant
statistical behaviour of markets for the portfolio of market datafrom the previous two years and observed interdependencies
between different markets and prices.

Financial Statements 2023

Airbus

275

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

The Company’s VaR computation includes the Company’s
financial debt, short‑term and long‑term investments, foreign
currency forwards, swaps and options, commodity contracts,finance lease receivables and liabilities, foreign currency tradeliabilities and receivables and contract assets.
Although VaR is an important tool for measuring market risk,
the assumptions on which the model is based give rise tosome limitations, including the following:– a five‑day holding period assumes that it is possible to hedge
or dispose of positions within that period. This is considered
to be a realistic assumption in almost all cases but may not
be the case in situations in which there is severe market
illiquidity for a prolonged period;– a 95% confidence level does not reflect losses that may
occur beyond this level. Even within the model used there is

a 5% statistical probability that losses could exceed thecalculated VaR;
– the use of historical data as a basis for estimating thestatistical behaviour of the relevant markets and finallydetermining the possible range of future outcomes out of thisstatistical behaviour may not always cover all possible
scenarios, especially those of an exceptional nature.
The Company uses VaR amongst other key figures in order todetermine the riskiness of its financial instrument portfolio andin order to optimise the risk‑return ratio of its financial asset
portfolio. Further, its investment policy defines a VaR limit for
the total portfolio of cash, cash equivalents and securities. The
total VaR as well as the different risk‑factor specific VaR figuresof this portfolio are measured and serve amongst othermeasures as a basis for the decisions of the Company’s Asset
Liability Management Committee.

A summary of the VaR position of the Company financial instruments portfolio at 31 December 2023 and 2022 is as follows:
Total VaR

Equityprice VaR

Currency
VaR

Commodity
price VaR

Interest
rate VaR

Foreign exchange hedges for forecast
transactions or firm commitments

801

0

911

0

165

Financing liabilities, financial assets (including
cash, cash equivalents, securities and related
hedges)

230

70

210

0

74

Finance lease receivables and liabilities, foreign
currency trade payables and receivables

81

0

39

0

79

Commodity contracts

6

1

6

0

Equity swaps

2

2

0

0

0

Diversification effect

(479)

(1)

(409)

0

(152)

All financial instruments

641

71

752

6

166

1,450

0

1,535

0

238

Financing liabilities, financial assets (including
cash, cash equivalents, securities and related
hedges)

268

67

225

0

80

Finance lease receivables and liabilities, foreign
currency trade payables and receivables

130

0

83

0

112

Commodity contracts

2

0

0

2

0

Equity swaps

2

2

0

0

0

Diversification effect

(584)

(1)

(472)

0

(139)

All financial instruments

1,268

68

1,371

2

291

(In € million)

31 December 2023

31 December 2022
Foreign exchange hedges for forecast
transactions or firm commitments

As of 31 December 2023, the total VaR amounts to €641 million (2022: €1,268 million). The decrease is mainly attributable to thecurrency and interest rate volatilities reduction in comparison to the exceptional levels in 2022.

76 Airbus

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 forhedging purposes. As a result, the respective market risks ofthese 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 foreignexchange 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 futurecommitments as they fall due. It manages its liquidity byholding adequate volumes of liquid assets and maintains acommitted 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 andDevelopment Finance Institutions and issue bonds, notes andcommercial 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 inorder 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 areno material uncertainties about the Company’s ability tocontinue 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 theCompany’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:(In € million)

Carrying
amountContractual
cash
flows < 1 year

1 year 2 years

2 years 3 years

3 years 4 years

4 years 5 years > 5 years

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)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)(36,366)(40,091)(19,423)(4,438)(2,546)(2,878)(1,729)(9,077)31 December 2022

Total

2

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.

Financial Statements 2023

Airbus77

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

Lease liabilities
The maturity analysis of lease liabilities, based on contractual undiscounted cash flows is as follows:
31 December(In € million)

2023

2022

Not later than one year

(222)

(241)

Later than one year and not later than five years

(769)

(747)

Later than five years(982)(1,036)

Total undiscounted lease liabilities(1,973)(2,024)

Lease liabilities included in the statement of financial position(1,617)(1,734)

(221)

(242)

(1,396)(1,492)Current
Non‑current

Credit Risk
The Company is exposed to credit risk to the extent of
non‑performance by either its customers (e.g. airlines) or its
counterparts with regard to financial instruments or issuers offinancial instruments for gross cash investments. However, it
has policies in place to avoid concentrations of credit risk andto ensure that credit risk is limited.
As far as central treasury activities are concerned, credit risk
resulting from financial instruments is managed by theCompany. In order to ensure sufficient diversification, a credit
limit system is used.
The Company monitors the performance of the individual
financial instruments and the impact of market developmentson their performance and takes appropriate action onforeseeable adverse development based on pre‑definedprocedures and escalation levels.
Sales of products and services are made to customers after

37.2

The booked amount of financial assets represents the
maximum credit exposure. The credit quality of financial assets
can be assessed by reference to external credit rating (ifavailable)orinternal
assessmentofcustomers’
creditworthiness e.g. airlines by way of internal risk pricing
methods. For further information relating to gross credit risk
and impairment see “– Note 37.7: Impairment Losses”.

Carrying Amounts and Fair Values of Financial Instruments

Financial instruments — The Company’s financial assets
mainly consist of cash, short to medium‑term deposits andsecurities. Its financial liabilities include trade liabilities,
obligations towards financial institutions, issued bonds andrefundable advances from European Governments. All
purchases and sales of financial assets are recognised on thesettlement date according to market conventions.
Financial assets at amortised cost — This categorycomprises assets that are held for collection of contractual
cash flows where those cash flows represent solely payments
of principal and interest. It includes trade receivables.
Financial assets at fair value through OCI — This categorycomprises:a) (i)equity investments that are not held for trading. With the
exception of dividends received, the associated gains andlosses (including any related foreign exchange component)
are recognised in OCI. Amounts presented in OCI are not

78 Airbus

having conducted appropriate internal credit risk assessment.
In order to support sales, primarily at Airbus, Airbus Helicoptersand ATR, the Company may agree to participate in customer
financing, on a case‑by‑case basis either directly or throughguarantees provided to third parties. In determining the amountand terms of the financing transaction, the Company takes into
account the airline’s credit rating and economic factors
reflecting the relevant financial market conditions, together withappropriate assumptions as to the anticipated future value ofthe financed asset.

Financial Statements 2023

subsequently transferred to profit or loss on derecognition of
the equity investment nor in the event of an impairment;b) (ii)debt instruments where contractual cash flows are solely
payments of principal and interest, and that are held bothfor sales and collecting contractual cash flows. Changes intheir fair value other than impairment losses and foreignexchange gains and losses on monetary items arerecognised directly within AOCI. Upon disposal of suchfinancial assets, the cumulative gain or loss previously
recognised in equity is recorded as part of other income(other expenses) from investments in the Consolidated
Income Statement for the period. Interest earned on theinvestment are presented as interest income in theConsolidated Income Statement using the effective interest
method. Dividends earned on investment were recognised
as other income (other expenses) from investments in theConsolidated Income Statement when the right to thepayment had been established.

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

Financial assets at fair value through profit or loss — This
category comprises all other financial assets (e.g. derivative
instruments) that are to be measured at fair value (including
equity investments for which the Company did not elect topresent changes in fair value in OCI).

The Company assigns its financial instruments into classes
based on their balance sheet category.

The following table presents the carrying amounts and fair values of financial instruments by class and by IFRS 9 measurement
category as of 31 December 2023:

Fair value
through OCI

Financial assets and liabilities
at amortised cost

Financial instruments total

Amortised cost

Fair value

Book value

Fair value

1,627

1,171

0

0

2,798

2,798

116

0

0

0

116

116

Other loans (2)

0

0

2,601

2,601

2,601

2,601

Trade receivables

0

0

4,725

4,725

4,725

4,725

Contract assets

0

0

1,849

1,849

1,849

1,849

1,227

0

0

0

1,227

1,227

Non‑derivative instruments

0

0

1,546

1,546

1,546

1,546

Securities

0

8,809

0

0

8,809

8,809

Cash and cash equivalents

12,409

1,010

3,050

3,050

16,46916,469Total

15,37910,99013,771

13,77140,14040,140Bonds and commercial
papers00(9,067)(9,470)(9,067)(9,470)Liabilities to financial
institutions and others

00(2,907)(2,907)(2,907)(2,907)

Finance lease liabilities (2)00(1,617)(1,617)(1,617)(1,617)(4,750)000(4,750)(4,750)European Governments’refundable advances (3)00(3,856)(3,856)(3,856)(3,856)

Others

0

(86)

(592)

(592)

(678)

(678)

Trade liabilities

00(14,323)(14,323)(14,323)(14,323)(4,750)(86)(32,362)(32,765)(37,198)(37,601)

Fair value
through profit
or loss

Equity investments (1)Customer financing(In € million)

AssetsOther investments andother long‑term financial
assetsOther financial assets
Derivative instruments

2

Liabilities
Financing liabilities

Other financial liabilities
Derivative instruments

Total(1) Other than those accounted for under the equity method.
(2) The carrying amounts are used as reasonable fair value approximations.
(3) The European Governments’ refundable advances of €-3,856 million are measured at amortised cost. Fair values cannot be reliably measured because their risk
sharing nature and the uncertainty of the repayment dates give rise to a broad range of reasonable fair value estimates and make it impossible to reasonably assess
the probabilities of the various estimates within the range. This may change and reliable fair value measures become available as the related programmes approach theend of production.

Financial Statements 2023

Airbus79

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

The following table presents the carrying amounts and fair values of financial instruments by class and by IFRS 9 measurement
category as of 31 December 2022:

Fair value
through OCI

Financial assets and liabilities
at amortised cost

Financial instruments total

Amortised cost

Fair value

Book value

Fair value

1,474

1,166

0

0

2,640

2,640

Customer financing

86

0

0

0

86

86

Other loans (2)

0

0

2,129

2,129

2,129

2,129

Trade receivables

0

0

4,953

4,953

4,953

4,953

Contract assets

0

0

1,527

1,527

1,527

1,527

1,894

0

0

0

1,894

1,894

Non‑derivative instruments

0

0

1,429

1,429

1,429

1,429

Securities

0

7,775

0

0

7,775

7,775

Cash and cash equivalents

11,135

1,001

3,687

3,687

15,823

15,823

Total

14,589

9,942

13,725

13,72538,25638,256

Bonds and commercial
papers00(8,681)(9,071)(8,681)(9,071)

Liabilities to financial
institutions and others

00(2,358)(2,358)(2,358)(2,358)Finance lease liabilities (2)00(1,734)(1,734)(1,734)(1,734)(9,613)000(9,613)(9,613)

European Governments’refundable advances (3)00(3,857)(3,857)(3,857)(3,857)

Others

0

(83)

(636)

(636)

(719)

(719)

Trade liabilities

00(13,261)(13,261)(13,261)(13,261)(9,613)(83)(30,527)(30,917)(40,223)(40,613)

Fair value
through profit
or loss

Equity investments (1)(In € million)

AssetsOther investments andother long‑term financial
assetsOther financial assets
Derivative instruments

Liabilities
Financing liabilities

Other financial liabilities
Derivative instruments

Total(1) Other than those accounted for under the equity method.
(2) The carrying amounts are used as reasonable fair value approximations.
(3) The European Governments’ refundable advances of €-3,857 million are measured at amortised cost. Fair values cannot be reliably measured because their risk
sharing nature and the uncertainty of the repayment dates give rise to a broad range of reasonable fair value estimates and make it impossible to reasonably assess
the probabilities of the various estimates within the range. This may change and reliable fair value measures become available as the related programmes approach theend of production.

80 Airbus

Financial Statements 2023

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

Fair Value Hierarchy
Fair value of financial instruments — The fair value of quoted
investments is based on current market prices. If the market for
financial assets is not active, or in the case of unlisted financial
instruments, the Company determines fair values by using
generally accepted valuation techniques on the basis of market
information available at the end of the reporting period.
Derivative instruments are generally managed on the basis of
the Company’s net exposure to the credit risk of each particularcounterparty and fair value information is provided to theCompany’s key management personnel on that basis. For
these derivative instruments, the fair value is measured basedon the price that would be received to sell a net long position,
or transfer a net short position, for a particular credit risk
exposure as further described below.

– Level 1: quoted prices (unadjusted) in active markets for
identical assets and liabilities;– Level 2: inputs other than quoted prices that are observablefor the asset or liability – fair values measured based on
Level 2 input typically rely on observable market data suchas interest rates, foreign exchange rates, credit spreads orvolatilities;– Level 3: inputs for the asset or liability that are not based on
observable market data – fair values measured based on
Level 3 input rely to a significant extent on estimates derived
from the Company’s own data and may require the use ofassumptions that are inherently judgemental and involve
various limitations.

Depending on the extent the inputs used to measure fair values
rely on observable market data, fair value measurements may
be hierarchised according to the following levels of input:

The fair values disclosed for financial instruments accounted forat amortised cost reflect Level 2 input. Otherwise, theCompany determines mostly fair values based on Level 1 andLevel 2 inputs and to a lesser extent on Level 3 input.

The following table presents the carrying amounts of the financial instruments held for the three levels of the fair value hierarchy
as of 31 December 2023 and 2022, respectively:
2023

2022

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

2,084

0

714

2,798

1,896

0

744

2,640

0

1,227

0

1,227

0

1,894

0

1,894

8,809

0

0

8,809

7,775

0

0

7,775

Customer financing

0

0

116

116

0

0

86

86

Cash equivalents

12,4091,010

013,419

11,1351,001

012,13623,3022,237

830

26,36920,8062,895

830

24,531

Derivative instruments

0(4,750)0(4,750)0(9,529)(84)(9,613)

Other financial liabilities

0

0

(86)

(86)

0

0

(83)

(83)

0

(4,750)(86)(4,836)0(9,529)(167)(9,696)(In € million)

Financial assets measured at fair value
Equity Investments
Derivative instruments
Securities

Total

2

Financial liabilities measured at fair value

Total

Financial Statements 2023

Airbus81

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

The development of financial instruments of Level 3 is as follows:(In € million)

Derivatives Participations

Customerfinancing

Written put Commodity
swap
options on
Total NCI interests agreements

Total

Balance at 1 January 2022

0

703

118

821

(16)

(78)

(94)

Business combination

0

0

0

0

0

0

0

Profit or loss

0

0

(32)

(32)

0

(98)

(98)

Equity

0

41

0

41

(67)

0

(67)

Settlements

0

0

0

0

0

92

92

Release

0

0

0

0

0

0

0

Balance at 31 December 2022

0

744

86

830

(83)

(84)

(167)

Business combination

0

0

0

0

0

0

0

Profit or loss

0

0

30

30

0

84

84

Equity

0

(31)

0

(31)

(3)

0

(3)

Settlements

0

0

0

0

0

0

0

Others

0

0

0

0

0

0

0

Balance at 31 December 2023

0

714

116

830

(86)

0

(86)

As at 31 December 2023, the fair value of the written put
options on non‑controlling interests (“NCI puts”) relating to
ACLP amounts to €86 million (2022: €83 million) and includes
an additional funding of ACLP by IQ in 2023.
The fair value of these NCI puts is derived from a discounted

cash flow analysis using the latest operating plan and a
projection over the lifetime of the A220 programme. In addition,a post‑tax WACC of 9.30% is used to discount the forecasted
cash flows, taking into account the specificities of the
programme (2022: 9.74%).

Financial Assets Designated at Fair Value through Profit or Loss
The following types of financial assets held at 31 December 2023 and 2022, respectively, are designated at fair value through profit
or loss:(In € million)

Nominal amount at
initial recognition at
31 December 2023

Fair value at
31 December 2023

Nominal amount at
initial recognition at
31 December 2022

Fair value at
31 December 2022

12,41012,410

11,135

11,135000012,41012,410

11,135

11,135

Designated at fair value through profit
or loss at recognition:
Money market funds
Foreign currency funds of fixed income
funds

Total

The Company manages these assets and measures their performance on a fair value basis.

82 Airbus

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 fairvalues: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) anddiscounted 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 theextent that these instruments are subject to master netting
arrangements and similar agreements and managed on thebasis of net credit exposure, their fair values reflect credit anddebit value adjustments based on the net long or net shortposition 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.

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 proxyfor 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 theirmaturity.

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 asreasonable estimates of fair value because of the relatively
short period between the origination of these instruments andtheir 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 inbanks, checks, fixed deposits as well as commercial papers
and money market funds. The carrying amounts reflected in theannual 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 ofcommercial 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 byreference to their quoted market price.

Trade liabilities and current other financial liabilities — For
the same reason as trade receivables, carrying amounts areused as reasonable fair value approximations for trade liabilities
and current other financial liabilities.

Derivatives — The fair values of derivative instruments reflect

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

2

31 December
2023

2022
€

(Rate in %)

2023

2022

2023

US$

2022
£

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

Financial Statements 2023

Airbus83

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

37.3

Potential Effect of Set‑Off Rights on Recognised Financial Assets
and Liabilities

The Company reports all its financial assets and financial
liabilities on a gross basis. With each derivative counterparty
there are master netting agreements in place providing for theimmediate close‑out of all outstanding derivative transactions
and payment of the net termination amount in the event a party
to the agreement defaults or another defined termination event
occurs. Furthermore, securities lending transactions areaccounted for as collateralised borrowings. As a result, thesecurities pledged as collateral continue to be recognised on

the balance sheet and the amount of cash received at theoutset of the transaction is separately recognised as a financial
liability. The following tables set out, on a counterparty specificbasis, the potential effect of master netting agreements andcollateralised borrowings on the Company’s Financial Position,
separately for financial assets and financial liabilities that were
subject to such agreements as of 31 December 2023 and2022, respectively:

Gross amounts
recognised

Gross amounts
recognised set
off in the
Financial
Statements

Net amounts
presented in
the Financial
Statements

Financial asset

1,180

0

Financial liabilities

4,710

Financial asset
Financial liabilities(In € million)

Related amounts not set off inStatement of Financial Position
Financial
instruments

Cash collateral
received

Net amount

1,180(1,170)

0

10

0

4,710

(1,170)

0

3,540

1,821

0

1,821

(1,820)

0

1

9,449

0

9,449

(1,820)07,629

31 December 2023

31 December 2022

37.4

Notional Amounts of Derivative Financial Instruments

The contract or notional amounts of derivative financial instruments shown below do not necessarily represent amounts exchangedby the parties and, thus, are not necessarily a measure for the exposure of the Company through its use of derivatives.
The notional amounts of foreign exchange derivative financial instruments are as follows, specified by year of expectedmaturity:
Remaining period(In € million)

1 year

2 years

3 years

4 years

5 years> 5 years

Total

17,47013,55911,002

8,122

4,885

(22)

55,016

20,076

18,636

12,128

8,100

7,284

1,201

67,42531 December 2023
Net forward and swap contracts
31 December 2022
Net forward sales contracts

84 Airbus

Financial Statements 2023

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

The following table sets out the notional amount of foreign exchange hedges in place as of 31 December 2023 relating to thecommercial activities of Airbus, and the average euro converted rates applicable to corresponding EBIT.
(In $ million)

2024

2025

2026

2027

2028+

Total

Total hedges

21,548

16,594

13,303

9,701

5,949

67,097

1.21

1.21

1.25

1.30

1.27

1.24

Forward rates€/US$

In 2023 new hedge contracts of US$12.2 billion (2022: US$7.5 billion) were added at an average rate of 1.11 US$/€(2022: 1.12
US$/€).
As of 31 December 2023, the total hedge portfolio with maturities up to 2029 amounts to US$67.1 billion (2022: US$76.4 billion)
and covers a significant portion of the foreign exchange exposure expected over the hedging horizon. The average US$/€ hedge
rate of the US$/€ hedge portfolio until 2029 amounts to 1.24 US$/€(2022: 1.24 US$/€).
(In £ million)

2024

2025

2026

2027

2028+

Total

Total hedges

1,020

794

701

475

414

3,405

0.88

0.90

0.91

0.92

0.93

0.90

Forward rates€/£

Since 2021, €/£ hedges were implemented in order to cover the GBP exposure of the Company.
The notional amounts of interest rate contracts are as follows:
Remaining period(In € million)

1 year

2 years

3 years

4 years

5 years

6 years

7 years> 7 years

Total

823

561

1,355

1,357

611

500

1,250

3,579

10,036

0

823

561

1,355

1,406

611

500

4,150

9,406

31 December 2023
Interest rate contracts
31 December 2022
Interest rate contracts

2

Please also refer to “– Note 36.3: Financing Liabilities”.
The notional amounts of commodity contracts are as follows:
Remaining period(In € million)

1 year

2 years

3 years

4 years> 4 years

Total

31 December 2023

122

74

31

0

0

228

31 December 2022

13

4

0

0

0

17

The notional amounts of equity swaps are as follows:
Remaining period(In € million)

1 year

2 years

3 years

4 years> 4 years

Total

31 December 2023

41

34

0

0

0

75

31 December 2022

17

22

14

0

0

53

Financial Statements 2023

Airbus85

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

37.5

Derivative Financial Instruments and Hedge Accounting Disclosure

The following table presents the reconciliation of AOCI, net of tax, resulting from cash flow hedge accounting as of 31 December
2023 and 31 December 2022:
31 December
2023

2022

(In € million)

Hedge reserve

Opening balance

5,688

3,448

(1,374)

5,575

(7)

34

(1,381)

5,609(2,072)(2,358)(4)(7)(2,076)(2,365)

165

(146)

0

(1)

Amount classified to profit or loss (inefficiency)

165

(147)

Tax impact

902

(857)

3,298

5,688

Foreign exchange contracts
OthersChanges in fair values
Foreign exchange contracts
OthersAmount reclassified to profit or loss (matured hedges)
Foreign exchange contracts
OthersClosing balance

The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness forcash flow hedges as of 31 December 2023:
Carrying values

OCI
Changes invalues of the Other changes
hedging in value of the
instrument hedge reserve

Hedge
inefficiency
recorded infinancial result

Amounts
reclassified
from hedge
reserve to
profit or loss

Asset

Liability

Net forward sales contracts

986(3,529)(2,369)995

165(2,072)Foreign exchange options

0

0

0

0

0

0

Embedded Derivatives

0

(37)

(12)

0

0

(4)

Interest rate risk

0

0

0

0

0

0

Commodity swap risk

1

0

5

0

0

0

Equity swap risk

10

1

0

0

0

0

Total

997

(3,565)(2,376)995

165(2,076)(In € million)

Foreign currency risk

86 Airbus

Financial Statements 2023

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

The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness forcash flow hedges as of 31 December 2022:
Carrying values

OCI
Changes invalues of the Other changes
hedging in value of the
instrument hedge reserve

Hedge
inefficiency
recorded infinancial result

Amounts
reclassified
from hedge
reserve to
profit or loss

Asset

Liability

1,492(7,643)

4,429

1,146

(146)

(2,358)Foreign exchange options

0

0

0

0

0

0

Embedded Derivatives

0

(60)

36

0

0

(7)

Interest rate risk

0

0

0

0

0

0

Commodity swap risk

6

0

(2)

0

(1)

0

Equity swap risk

1

(4)

0

0

0

0

1,499

(7,707)

4,463

1,146

(147)

(2,365)(In € million)

Foreign currency risk
Net forward sales contracts

Total

37.6

Net Gains or Net Losses

The Company’s net gains or net losses recognised in profit or loss in 2023 and 2022, respectively, are as follows:
2023

2022

Held for trading

182

497

Designated on initial recognition

(110)

95

Financial assets at amortised cost

(63)

(232)

Financial assets at fair value through OCI (previously available‑for‑sale)

(66)

55

Financial liabilities measured at amortised cost

263

(75)

(In € million)

Financial assets or financial liabilities at fair value through profit or loss

2

Net losses of €-350 million (2022: €-1,169 million) are recognised directly in equity relating to financial assets at fair value.
Interest income from financial assets or financial liabilities through profit or loss is included in net gains or losses.

37.7

Impairment Losses

Loss allowances — For its portfolio of debt instruments
including bonds, term deposits and commercial papers, theCompany measures loss allowances at an amount that
represents credit losses resulting from default events that are
possible within the next 12 months, unless the credit risk on afinancial instrument has increased significantly since initialrecognition. In the event of such significant increase in credit
risk the Company measures loss allowances for that financial
instrument at an amount equal to its life‑time expected losses,
i.e. at an amount equal to the expected credit losses that result
from all possible default events over the expected life of that
financial instrument.

Financial Statements 2023

Airbus87

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

The Company applies the low credit risk exemption allowing
the Company to assume that there is no significant increase incredit risk since initial recognition of a financial instrument, if the
instrument is determined to have low credit risk at the reporting
date. Similarly, the Company has determined that its tradereceivables and contract assets generally have low credit risk.
The Company applies the simplified approach permitted by
IFRS 9 of measuring expected credit losses of tradereceivables and contract assets on a lifetime basis from initialrecognition.

Investment grade instruments — The Company considers asignificant increase in credit risk to have occurred, if there is adowngrade by four notches such that the instrument moves
into a high yield bucket as a direct result of the downgrade.
With respect to instruments that were high yield at initialrecognition, a downgrade by four notches is considered as asignificant increase in credit risk.

Stage 1

Stage 2

12‑month ECL

Life‑time ECL

Credit impaired
ECL

At 1 January 2023

17.22

8.35

26.71

52.28

Change in financial assets(0.83)

10.11

27.08

36.36

Change in risk parameters(8.09)

4.55(4.08)(7.62)At 31 December 2023

8.30

23.01

49.71

81.02

(In € million)

Stage 3
Total

Stage 1

Stage 2

12‑month ECL

Life‑time ECL

Credit impaired
ECL

Total

At 1 January 2022

12.08

20.74

18.77

51.59

Change in financial assets

3.82(5.44)(1.47)(3.09)

Change in risk parameters

1.32(6.95)

9.41

3.78

At 31 December 2022

17.22

8.35

26.71

52.28

(In € million)

Stage 3

The following table breaks down the gross carrying amount of loans and receivables as of 31 December 2023 and 2022,
separately showing those that are impaired, renegotiated or past due:(In € million)

Renegotiated /Gross
Not past not past due /not impaired impaired
due

Past
due ≤ 3monthsPast
due > 3and ≤ 6months

Past
Past
Past
due > 6 due > 9and ≤ 9 and ≤ 12 due > 12months months months Impairment

Total

31 December 2023
Trade receivables

3,620

0

249

410

127

101

125

452

(359)

4,725

Contract assets

1,850

0

0

0

0

0

0

0

(1)

1,849

Others

2,934

1

147

337

134

32

50

700

(191)

4,144

Total

8,404

1

396

747

260

134

175

1,152

(551)

10,71788 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.8 Other Notes

Renegotiated /Gross
Not past not past due /not impaired impaireddue(In € million)

Past
due ≤ 3monthsPast
due > 3and ≤ 6months

Past
Past
Past
due > 6 due > 9and ≤ 9 and ≤ 12 due > 12months months months Impairment

Total

31 December 2022
Trade receivables

3,727

0

376

373

147

132

99

479

(380)

4,953

Contract assets

1,528

0

0

0

0

0

0

0

(1)

1,527

Others

2,552

2

93

131

391

116

7

452

(188)

3,556

Total

7,807

2

469

504

538

248

106

931

(569)

10,036The management believes that the unimpaired amounts that are past due are still collectible in full, based on historic payment
behaviour and analysis of customer credit risk, including underlying customers’ credit ratings if they are available.
The following impairment losses on financial assets are recognised in profit or loss in 2023 and 2022, respectively:
2023

2022

Trade receivables

(19)

(65)

Contract assets

0

0

(19)

(65)

(In € million)

Total

2.8 Other Notes
38.

Litigation and Claims

Litigation and claims — Various legal actions, governmental
investigations, proceedings and other claims are pending or
may be instituted or asserted in the future against theCompany. Litigation is subject to many uncertainties, and theoutcome of individual matters is not predictable with certainty.
Provisions have been accounted for in accordance with IFRS
criteria. It is reasonably possible that the final resolution ofsome of these matters may require the Company to makeexpenditures, in excess of established provisions over an
extended period of time and in a range of amounts that cannot
be reasonably estimated. The term “reasonably possible” isused herein to mean that the chance of a future transaction or
event occurring is more than remote but less than likely.

The Company is involved from time to time in various
governmental, legal and arbitration proceedings in the ordinary
course of its business, the most significant of which aredescribed below. Other than as described below, there are nomaterial governmental, legal or arbitration proceedings(including any such proceedings which are pending or
threatened) which may have or have had in the recent pastsignificant effects on Airbus SE’s or the Company’s Financial
Position or profitability.

2

If the Company concludes that the disclosures relative tocontingent liabilities can be expected to prejudice seriously its
position in a dispute with other parties, the Company limits its
disclosures to the nature of the dispute.

Financial Statements 2023

Airbus89

2. Notes to the IFRS Consolidated Financial Statements
2.8 Other Notes

Investigation by the UK SFO, France’s PNF, US Departments of State and Justiceand Related Commercial Litigation
During 2023, the various proceedings in relation to the final
agreements (“the agreements”) reached with the French
Parquet National Financier (“PNF”), the UK Serious Fraud Office(“SFO”), and the US Department of Justice (“DoJ”) (resolving
the authorities’ investigations into allegations of bribery andcorruption), and the US Department of State (“DoS”) and theDoJ (resolving their investigations into inaccurate andmisleading filings made with the DoS pursuant to the US
International Traffic in Arms Regulations (“ITAR”)), wereconcluded.
The agreements were approved and made public on
31 January 2020. Under their terms, the Company agreed to
pay penalties of €3,597,766,766 plus interest and costs to the
French, UK and US authorities. This was recognised in the
Company’s 2019 accounts, and all penalties have been paid.
The settlements with each authority were as follows: PNF€2,083,137,455, the SFO €983,974,311, the DoJ€526,150,496 and the DoS €9,009,008 of which €4,504,504
could be used for approved remedial compliance measures.
Under the terms of the Convention judiciaire d’intérêt public(“CJIP”) with the PNF, the Company had an obligation tosubmit its compliance programme to targeted audits carriedout by the Agence Française Anticorruption (“AFA”) over a
period of three years.
Under the terms of the Deferred Prosecution Agreement(“DPA”) with the SFO, no independent compliance monitor was
imposed on the Company in light of the continuing monitorshipconducted by the AFA.
Under the terms of the DPA with the DoJ, no independent
compliance monitor was imposed on Airbus under theagreement with the DoJ, but the Company periodicallyreported on its continuing compliance enhancement progress
during the three year term of the DPA and carried out further
reviews as required by the DoJ.
The agreements resulted in the suspension of prosecution for aduration of three years. This deferral period ended on
31 January 2023. On 13 February 2023, the SFO gave noticeto the Company discontinuing the prosecution. On 17 March
2023, the PNF gave notice of the same with receipt of theConstat de l’extinction de l’action publique. On 28 July 2023
the DoJ filed a motion to dismiss which was granted by the
court on 10 August 2023. With receipt of the aforementioned
notices, the CJIP with the PNF, the DPA with the SFO and the
DPA with the DoJ were formally concluded.

90 Airbus

Financial Statements 2023

Under the terms of the Consent Agreement with the DoS, the
DoS agreed to settle all civil violations of the ITAR outlined in
the Company’s voluntary disclosures identified in the Consent
Agreement, and the Company agreed to retain an independent
export control compliance officer to monitor the effectiveness of
the Company’s export control systems and its compliance with
the ITAR.
As a result of the Company’s decision to redirect export control
compliance resources to ensure compliance with export control
restrictions and international sanctions announced against
Russia, Belarus and certain Russian entities and individuals
following Russia’s invasion of Ukraine on 24 February 2022, theCompany asked the DoS to extend the Consent Agreement anadditional nine months from its original expiration date, and the
DoS granted this extension. On 26 October 2023, theCompany received notice from the DoS of the closure of theConsent Agreement based on the fulfilment of its terms.
In addition to any pending investigation in other jurisdictions,the factual disclosures made in the course of reaching theagreements may result in the commencement of additional
investigations in other jurisdictions. Such investigations could
also result in (i) civil claims or claims by shareholders against
the Company, (ii) adverse consequences on the Company’s
ability to obtain or continue financing for current or future
projects, (iii) limitations on the eligibility of group companies forcertain public sector contracts, and/or (iv) damage to theCompany’s business or reputation via negative publicity
adversely affecting the Company’s prospects in the commercial
marketplace.
Airbus will continue to cooperate with the authorities in the
future and to enhance its strong Ethics & Complianceprogramme and culture within the Company.
In the wake of the agreements and settlements describedabove, several consultants and other third parties initiatedcommercial litigation and arbitration against the Company
seeking relief. The agreements reached with authorities maylead to additional commercial litigation and arbitration against
the Company and tax liability in the future, which could have amaterial impact on the Financial Statements, business andoperations of the Company.

2. Notes to the IFRS Consolidated Financial Statements
2.8 Other Notes

Securities Litigation
In August 2021 the Company received notification of two
separate claims and in March 2022 of a third claim, each filed
in the Netherlands purportedly on behalf of Airbus investors.
These claims (the “Dutch claims”) assert that the Company
violated its reporting obligations, allegedly leading to an impact
on the Company’s share price, by failing to adequately inform
investors and providing false or misleading information about its
use of intermediaries and alleged corrupt practices, its related
financial exposure, internal investigations and subsequent
measures taken by the Company, and the related criminal
investigations leading to the Company’s agreements approvedon 31 January 2020 with the French PNF, the UK SFO, the US
DoJ and the US DoS.

The Dutch claims followed the filing in 2020 of a putative classaction lawsuit in US federal court in the state of New Jersey,
against Airbus SE and members of its current and former
management. The US complaint asserted violations of US
securities laws, alleging false and misleading statements oromissions concerning, among other things, the Company’s
agreements approved on 31 January 2020 with the French
PNF, the UK SFO, the US DoJ and the US DoS as well as theCompany’s historic practices regarding the use of third party
business partners and anti‑corruption compliance. The matter
was fully and finally settled on 30 September 2022 in exchange
for a payment in the amount of $5 million USD without any
acknowledgement of liability.

The first Dutch claim was filed with the Amsterdam District
Court in August 2021 by a special purpose vehicle
incorporated under the laws of Guernsey, an assignee
purportedly representing numerous private shareholders andinstitutional investors, seeking a declaratory judgment withdamages to be assessed in follow on proceedings.

On 30 August 2023, the first Dutch claim was dismissed on the
merits, with the plaintiff appealing this dismissal on
29 November 2023. On 20 September 2023, the second andthird Dutch claims were dismissed on procedural grounds,
which plaintiffs appealed on 19 December 2023. The calendar
for appeal proceedings on both matters extends at least to2025 and could take longer.

The second Dutch claim was filed in December 2021 following
a demand letter sent by a foundation incorporated under thelaws of the Netherlands, a purported representative of
unnamed institutional and retail investors worldwide, starting aclass action against the Company before the Dutch courts.
This second Dutch claim targets the Company, certain of theCompany’s current and former directors and officers, and theCompany’s current and former auditors.
The third Dutch claim was a class action filed in April 2022
against the Company by a foundation incorporated under thelaws of the Netherlands. In accordance with Dutch procedurallaw, the two Dutch class action claims are treated jointly as one
case.

The Company cannot exclude the possibility that additional
claims are filed related to this subject matter attempting
different theories of recovery in the same or different
jurisdictions.
The Company believes it has solid grounds to defend itself
against the allegations. The consequences of such litigationand the outcome of the proceedings cannot be fully assessedat this stage, but any judgment or decision unfavourable to theCompany could have a material adverse impact on the
Financial Statements, business and operations of theCompany.

2

Air France Flight 447 Trial
On 1 June 2009, an A330 operated by Air France as flight
AF447 from Rio de Janeiro to Paris disappeared over the
Atlantic Ocean with 228 persons onboard. The wreckage was
located in April 2011 after several search campaigns organisedby the Bureau d’Enquêtes et d’Analyses (BEA), which
published its final investigation report in July 2012. In the wakeof the accident, the prosecutor in Paris opened an investigation
for involuntary manslaughter and Airbus SAS was charged in
March 2011. In September 2019, the investigating magistrates
closed the investigation and dismissed all criminal charges after
a thorough analysis of the technical and legal elements of thecase. However, the Paris Court of Appeal overturned themagistrates’ decision and ordered a trial for involuntarymanslaughter. The Company’s appeal to the French Supreme
Court was dismissed. Following a trial in the fourth quarter of2022, the Paris Criminal Court announced on 17 April 2023
that all criminal charges against the Company were dismissed
but sustained certain civil liability claims. On 26 April 2023, theParis General Prosecutor filed an appeal of the dismissal of
criminal charges against Airbus and Air France. As aconsequence, there will be a full retrial of the matter, which theCompany expects will be scheduled to take place in 2024 or
2025.

Financial Statements 2023

Airbus91

2. Notes to the IFRS Consolidated Financial Statements
2.8 Other Notes

Grand Canyon Helicopter Accident
On 10 February 2018, a fatal accident occurred in the Grand
Canyon at a site called Quartermaster in Arizona involving an
EC130 B4 helicopter operated by Papillon Helicopters
impacting the canyon floor and catching fire, leading to fivefatalities and two severely injured persons. Following theaccident, product liability claims were filed in Nevada state
court in the US, including claims by the estate and parents of a

deceased passenger and by the injured pilot of the helicopter.
On 6 May 2023 the claim of the pilot was settled, with noadmission of liability on behalf of the Company. In
January 2024, the last remaining claim with a passenger family
was settled, with no admission of liability on behalf of theCompany, in the amount of $100 million USD, shared between
Airbus Helicopters and Papillon Helicopters.

Other Investigations
In 2019, the Company self‑reported to German authorities
potentially improper advance receipt and communication ofconfidential customer information by employees of Airbus
Defence and Space GmbH. The information concerned relates
to future German government procurement projects. The
self‑disclosure by the Company followed an internal review withthe support of an external law firm. Both the German Ministryof Defence and the Munich public prosecutor opened aninvestigation into the matter. The investigation could have an

39.

impact on Airbus Defence and Space GmbH’s and Airbus
Secure Land Communications GmbH’s ability to participate in
future public procurement projects in Germany. In 2021 theMunich prosecution issued a penalty notice against Airbus
Defence and Space GmbH for €10 million for negligent
violation of supervisory duties in connection with this matter.
The Company continues to fully cooperate with relevant
authorities.

Auditor Fees

With reference to Section 2:382a (1) and (2) of the Netherlands Civil Code, the following fees for the financial year 2023 have been
charged by EY to the Company, its subsidiaries and other consolidated entities:
2023

2022

12,656

11,975

Other audit engagements

798

485

Tax services

233

316

3,691

793

17,37813,569(In € thousand)Audit of the Financial Statements

Other non‑audit services

Total

Other audit firms have audit fees related to audit process, certification and examination of individual and consolidated accounts of€8 million in 2023 (2022: €7 million).

92 Airbus

Financial Statements 2023

2. Notes to the IFRS Consolidated Financial Statements
2.8 Other Notes

40.

Events after the Reporting Date

Airbus U.S. Space & Defense, Inc. acquired from Eutelsat
OneWeb its 50% share of the Airbus OneWeb Satellites (AOS)
joint venture, making Airbus the 100% owner of AOS and thesatellite manufacturing facility in Merritt Island, Florida. The
Airbus OneWeb Satellites joint venture, established in 2016,
built more than 600 satellites at the rate of two per day for the
OneWeb first generation constellation, currently operating
on‑orbit.

Airbus Helicopters has signed an agreement to acquire Aerovel,
the maker of Flexrotor, a small tactical unmanned aerial systemdesigned for intelligence, surveillance, target acquisition andreconnaissance (ISTAR) missions at sea and over land. Aerovel,
based in Bingen, Washington, will remain a US‑owned
company and will continue to collaborate with the US DoD
under Airbus’ Special Security Agreement (SSA). The
acquisition is subject to regulatory approvals and customary
closing conditions, with closing expected in 2024.

2

Financial Statements 2023

Airbus93

For further information, please refer to the Company’s website.

94 Airbus

Financial Statements 2023

94.67%

AirbusAerostructures
GmbH(Germany)

AirbusGmbH(Germany)

Airbus Operations
Limited(UK)

AirbusOperations, S.L.
(Spain)AirbusOperations
GmbH(Germany)

5.33 %

Airbus Operations
SAS(France)

Airbus Defence
and Space
Limited(UK)

Ariane Group50%*

Airbus Defence
and Space Holding
France SAS(France)99.99%

Airbus Defence
and Space SAS(France)

50%*

MBDA
(France)

37.5%*ATR GIE(France)

Computadoras,Redese Ingenieria, S.A.
(Spain)Airbus Defence
and Space, S.A.
(Spain)Airbus Atlantic(France)

MBDA Group

Ariane Group

Airbus Helicopters

38.53%

Airbus Helicopters
España, S.A.
(Spain)Airbus Helicopters
DeutschlandGmbH(Germany)

Airbus Helicopters(France)

Airbus Helicopters
UK Limited(UK)

Airbus Defence and Space

Airbus Americas,
Inc.
(USA)

45%

Airbus Defence
and Space GmbH
(Germany)

Eibe
FlugzeugwerteGmbH(Germany)

Airbus SAS(France)61.47%

Subsidiaries held with no indication of ownership percentage are 100% owned.
Indirectly *Legal forms are indicated for information purposes and are not always part of the legal name.

Airbus Canada
LimitedPartnership(France)

75%*

5.27%

94.73%

2.9.1(The Netherlands)

AIRBUS SE

2. Notes to the IFRS Consolidated Financial Statements
2.9 Appendix“Simplified Airbus Structure”

2.9 Appendix“Simplified Airbus structure”

Independent auditor’s report
To: the shareholders and the board of directors of Airbus SE

Report on the audit of the financial statements 2023 included in
the annual report
Our opinion

We have audited the financial statements 2023 of Airbus SE (the Company) based in Amsterdam,
the Netherlands.
In our opinion the accompanying financial statements give a true and fair view of the financial positionof Airbus SE as at 31 December 2023 and of its result and its cash flows for 2023 in accordance with International
Financial Reporting Standards as adopted in the European Union (EU-IFRSs) and withPart 9 of Book 2 of the Dutch Civil Code.
The financial statements comprise:• The consolidated and IFRS company statement of financial position as at 31 December 2023
• The following statements for 2023: the consolidated and IFRS company income statement,
the consolidated and IFRS company statements of comprehensive income, changes in equity andcash flows• The notes comprising material accounting policy information and other explanatory information

Basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing.
Our responsibilities under those standards are further described in the Our responsibilities for the audit of thefinancial statements section of our report.
We are independent of Airbus SE in accordance with the EU Regulation on specific requirements regarding statutory
audit of public-interest entities, the Wet toezicht accountantsorganisaties(Wta, Audit firms supervision act), the Verordening inzake de onafhankelijkheid van accountants bij assuranceopdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and otherrelevant independence regulations in the Netherlands. Furthermore, we have complied with the Verordening
gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics).
We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.

Information in support of our opinion
We designed our audit procedures in the context of our audit of the financial statements as a whole and in forming
our opinion thereon. The following information in support of our opinion and any findings were addressed in thiscontext, and we do not provide a separate opinion or conclusion on these matters.

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Our understanding of the business
The Company is globally active in developing, producing and delivering aeronautics and aerospace products andrelated services. The Company is structured in segments, and we tailored our group audit approach accordingly. We
paid specific attention in our audit to a number of areas driven by the operations of the group and our risk
assessment. We refer to the key audit matters for those areas.
We determined materiality and identified and assessed the risks of material misstatement of the financial
statements, whether due to fraud or error, in order to design audit procedures responsive to those risks and toobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Materiality
Materiality€292 million (2022: €281 million)

Benchmark applied

5% of EBIT Adjusted (2022: 5% of EBIT Adjusted)

Explanation

We consider EBIT Adjusted as the most appropriate benchmark as it best aligns withthe financial performance expectations of those charged with governance at Airbus
SE and in our assessment of users of the Company’s financial statements.

We have also taken into account misstatements and/or possible misstatements that in our opinion are material forthe users of the financial statements for qualitative reasons.
We agreed with the board of directors that any misstatements in excess of €15 million (5% of materiality mentioned
above), that are identified during the audit, would be reported to them, as well as any smaller misstatements that in
our view must be reported on qualitative grounds.
Scope of the group audit
Airbus SE is at the head of a group of entities. The financial information of the group is included in the consolidated
financial statements.
Because we are ultimately responsible for our opinion, we are also responsible for directing, supervising andperforming the group audit. In this respect we have determined the nature and extent of the audit procedures to be
carried out for group entities. Decisive were the size and/or the risk profile of the group entities or operations. On
this basis, we selected group entities for which an audit had to be carried out on the complete set of financial
information or on specific items.
The entities are grouped by the Company into three business segments (divisions): Airbus,
Airbus Helicopters and Airbus Defence and Space. The audit of the three segments is performed jointly by EY and
KPMG. The audits of the entities in scope are performed in the countries these entities are located in, by either EY
or KPMG network firms or by both.

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Page 3In total the scope of our audit procedures covered 95% of total consolidated revenue, 93% of total consolidated
assets and 100% of total consolidated EBIT and all adjustments to EBIT. For the remaining entities making up 5% ofrevenues and 7% of total assets, we performed, amongst others, analytical procedures to corroborate ourassessment that the financial statements are free from material misstatements.
We executed an audit plan that includes participation in risk assessment and planning discussions, setting thedirection of the group audit work (including instructions to the divisional and entity auditors), reviewing anddiscussing the planned audit approach, obtaining an understanding of the financial reporting process andperforming procedures on the group consolidation, participating in the evaluation of key accounting topics,
reviewing the financial statements and participating in meetings with the management of the Company and its
divisions. In our audit instructions, we also included targeted audit procedures regarding the risks of material
misstatement associated with the key programs as well as targeted audit procedures regarding the risk of material
misstatement due to non-compliance with laws and regulations. We furthermore executed file reviews at divisionlevel.
By performing the procedures mentioned above at components of the group, together with additional proceduresat group level, we have been able to obtain sufficient and appropriate audit evidence about the group’s financial
information to provide an opinion about the consolidated financial statements.
Teaming and use of specialists
We ensured that the audit teams both at group level, division level and at in-scope component level included theappropriate skills and competences which are needed for the audit of the financial statements of this listedcompany in the aerospace industry.
We involved several EY specialists to assist the audit team, including specialists from our tax, actuarial, treasury,
valuation and forensic departments.
Our focus on climate risks and the energy transition
Climate change and energy transition are high on the public agenda. Issues such as CO 2 reduction (potentially)
impact financial reporting, as these issues entail risks for the business operation,
the valuation of assets (stranded assets) and provisions or the sustainability of the business modeland access to financial markets of companies with a larger CO2 footprint. The Company reported in Section 4.6.4 of
the report of the board of directors how they addressed the climate related risks.
In Section 6.1.2 of the report of the board of directors, the Company discloses its assessment, implementation plans
and ambitions in connection to climate-related risks and the effects of energy transition.
As part of our audit of the financial statements, we evaluated the extent to which climate-related risks and thepossible effects of the energy transition and the Company’s implementation plans and ambitions in this regard, aretaken into account in estimates and significant assumptions, as well as in the design of controls related to relevant
estimates and assumptions. Furthermore, we read the report of the board of directors and considered whether
there is any material inconsistency between the non-financial information and the financial statements.

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Our audit procedures to address the assessed climate-related risks and the possible effects of the energy transition
did not result in a key audit matter. However, we describe the audit procedures responsive to the assessed risk suchas the valuation of long-lived assets in the description of our audit approach for the key audit matter Recoverabilityof key program assets - long-lived assets.
Our focus on fraud and non-compliance with laws and regulations
Our responsibility
Although we are not responsible for preventing fraud or non-compliance and we cannot be expected
to detect all fraud or non-compliance with all laws and regulations, it is our responsibility to obtain reasonableassurance that the financial statements, taken as a whole, are free from material misstatement, whether caused byfraud or error. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or override of internal
control.
Our audit response related to fraud risks
We identified and assessed the risks of material misstatements of the financial statements due to fraud (alsoreferred to as fraud risks or risks of fraud). During our audit, we obtained an understanding of the Company and its
environment and the components of the system of internal control, including the risk assessment process and theprocess for responding to the risks of fraud and monitoring the system of internal control, as well as the outcomes.
We also considered how the audit committee and the Ethics, Compliance and Sustainability Committee exercise
oversight on behalf of the board of directors.
We refer to Section 4.6 of the report of the board of directors for the risk assessment including the assessment ofrisk of fraud that might result in non-compliance with anti-corruption laws and regulation.
We evaluated the design and relevant aspects of the system of internal control and in particular the fraud risk
assessment, as well as the code of conduct, whistleblower procedures and incident registration.
We evaluated the design and the implementation and, where considered appropriate in the context of our audit of
the financial statements, tested the operating effectiveness of controls designed to mitigate fraud risks.
As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect to financial reporting
fraud, misappropriation of assets and bribery and corruption in close co-operation with our forensic and legal
specialists. We evaluated whether these factors indicate that a risk of material misstatement due to fraud or noncompliance with laws and regulations is present. For our audit response related to the risk of non-compliance withlaws and regulations, including bribery and corruption, we refer to the next section.
We incorporated elements of unpredictability in our audit. We also considered the outcome of our other audit
procedures and evaluated whether any findings were indicative of fraud or non-compliance.
We addressed the risks related to management override of controls, as this risk is present in all companies. For
these risks we have performed, amongst others, procedures regarding the evaluation of key accounting estimatesfor management override in particular relating to important judgment areas as disclosed in Note 5 Key Estimatesand Judgements to the financial statements. We have also used data analytics to identify and address high-risk
journal entries and evaluated the business rationale(or the lack thereof) of any significant extraordinary transactions, including those with related parties.

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Page 5In addition, we identified the following fraud risks requiring significant attention during our audit:

Risks related to management override of controls in the determination of margin at completion
and recoverability of key program assets
Fraud risk

In our audit we gave significant attention to the judgments and assumptions made bymanagement in the determination of the provision for onerous contracts, specifically the contract
margin, the impairment of assets especially related to the recoverability of assets for key
programs and the program-related provisions and depreciations, and considered whether the
judgments and assumptions indicated a management override of controls that may represent arisk of material misstatement due to fraud.

Our audit
approach

We describe the audit procedures responsive to the assessed risk of fraud in the description of
our audit approach for the key audit matters:• Estimations related to revenues and costs at completion for the accounting of onerous
contracts and material over time contracts• Recoverability of key program assets - long-lived assets

Risks of fraud in revenue recognition
Fraud risk

When identifying and assessing fraud risks, we presumed that there are risks of fraud in revenue
recognition. In our audit we gave significant attention to the cut-off risk of cost incurred for
performance obligations satisfied over time and the cut-off risk on transfer of control for
performance obligations satisfied at a point in time.

Our audit
approach

We describe the audit procedures responsive to the risks of fraud in revenue recognition in thedescription of our audit approach for the key audit matter Revenue recognition.

We considered available information and made enquiries of relevant executives, directors (including internal audit,
legal, compliance, human resources and divisional directors) and the board of directors.
The fraud risks we identified, enquiries and other available information did not lead to specific indications of fraud
or suspected fraud potentially material to the financial statements.
Our audit response related to risks of non-compliance with laws and regulations
We performed appropriate audit procedures regarding compliance with the provisions of those laws and regulations
that have a direct effect on the determination of material amounts and disclosures in the financial statements.
Furthermore, we assessed factors related to the risks of non-compliance with laws and regulations that could
reasonably be expected to have a material effect on the financial statements from our general industry experience,
through discussions with the board of directors, reading minutes, reading of internal audit and compliance reports,
and performing substantive tests of details of classes of transactions, account balances or disclosures. Specifically,
we have evaluated that the disclosures innote 38 of the financial statements reflect the current status of the most significant investigations regarding
suspected breaches of law and regulations. We also evaluated the appropriateness of the contingent liability
disclosure (note 24) in the financial statements.

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We identified the following risk of non-compliance and performed the following specific procedures:

Risk of non-compliance with anti-bribery and anti-corruption legislation
Risk

A part of the Company’s business is characterized by competition for contracts with customers inhigh-risk countries and which are often directly or indirectly associated with governments. In
obtaining these contracts, the Company uses commercial intermediaries in a number ofterritories. In identifying and assessing risks, taking into account the amounts paid, we considered
the risks of non-compliance with anti-bribery and anti-corruption legislation in high-riskcountries, including the use of commercial intermediaries, to be an inherent risk.
We refer to the discussion of legal risks in Section 4.6.3 of the report of the board of directors.

Our audit
approach

We performed amongst others the following audit procedures, directed specifically to this risk
and designed and performed in conjunction with our in-house forensic specialists:• We evaluated the tone set by management and the board of directors as well as theCompany’s approach in managing this risk.
• We evaluated the overall control environment and evaluated the Company’s policies and antibribery and anti-corruption procedures.
• We made inquiries of the audit committee, as well as the Company’s internal and external
legal advisors as to the areas of potential or suspected breaches of law and regulations
relating to bribery, including the status of ongoing investigations.
To corroborate the results of those inquiries, we corroborated information received with
objective evidence, third parties and we reviewed related documentation.
• We tested the selection process of commercial intermediaries, related contractual
arrangements and payments to intermediaries.
• We maintained a high level of vigilance to possible indications of bribery and corruption whilst
carrying out our other audit procedures.
• We tested journal entries and other transactions with unusual characteristics using amongst
other data-analytics tools.
• We evaluated the activities and reporting of the monitor and assessed the incident reporting
system of Airbus and follow-up on the most relevant incidents.

We also read and evaluated lawyers’ letters and correspondence with regulatory authorities and remained alert toany indication of (suspected) non-compliance throughout the audit. Finally, we obtained written representations
that all known instances of non-compliance with laws and regulations have been disclosed to us.
Our audit response related to going concern
As disclosed in Note 35 Capital Management and Note 37 Financial Instruments to the financial statements, thefinancial statements have been prepared on a going concern basis. When preparing the financial statements, theboard of directors made a specific assessment of the company’s ability to continue as a going concern and tocontinue its operations for at least the next twelve months.

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We discussed and evaluated the specific assessment with the board of directors exercising professional judgment
and maintaining professional skepticism. We considered whether the board of directors’ going concern assessment,
based on our knowledge and understanding obtained through our audit of the financial statements or otherwise,
contains all relevant events or conditions that may cast significant doubt on the Company’s ability to continue as agoing concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion.
Based on our procedures performed, we did not identify material uncertainties about going concern for the next
twelve months. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue
as a going concern.
Our key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of thefinancial statements. We have communicated the key audit matters to the board of directors. The key audit matters
are not a comprehensive reflection of all matters discussed.
In comparison with previous year, the nature of our key audit matters did not change.

Revenue recognition(Reference is made to the disclosures on Note 4 Material accounting policy information, Note 5
Key Estimates and Judgements, Note 11 Segment Information and Note 12 Revenues and Gross
Margin of the financial statements)
Risk

The Group revenue recognition is complex due to its wide range of activities (including thesale of commercial aircraft and helicopters, sale of military aircraft and helicopters, sale ofspace systems, and services), its various types of contracts including non-standard clauses andthe duration of some contracts including long-term development activities.
When identifying and assessing fraud risks, we presume that there are risks of fraud inrevenue recognition relating to the estimates of margin at completion and cut-off of costs
incurred related to over time contracts (notably for A400M development and space systems
contracts) as well as the cut-off risk on deliveries related to point in time contracts.
Furthermore, recognition of revenue includes significant management judgments andestimates including whether the contracts contain multiple performance obligations whichshould be accounted for separately and the determination of the most appropriate method
for revenue recognition of these performance obligations. Recognition of revenues comprises
the identification of potential variable considerations reducing the consideration received,
allocation of these considerations to the different performance obligations and assessing if
the performance obligations are satisfied over time or at a point in time.

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Revenue recognition(Reference is made to the disclosures on Note 4 Material accounting policy information, Note 5
Key Estimates and Judgements, Note 11 Segment Information and Note 12 Revenues and Gross
Margin of the financial statements)
In particular, the amount of revenue and profit recognized in a year for performanceobligations satisfied at a point in time, is dependent on the transfer of control.
For performance obligations satisfied over time, this is dependent on the assessment of thestage of completion of performance obligations, as well as estimated total revenues andestimated total costs. The Company uses costs incurred as the method for determining stageof completion.
Our audit
approach

Our audit procedures included, amongst others, evaluating the appropriateness of theCompany’s accounting policies related to revenue recognition according to IFRS15 “Revenue
from contracts with customers” and whether the accounting policies have been appliedconsistently or whether changes, if any, are appropriate
in the circumstances. In addition, we evaluated the design and implementation and, whereconsidered appropriate in the context of our audit of the financial statements, tested theoperating effectiveness of controls related to the completeness, accuracy and timing of therevenue recognized. We selected individual revenue transactions to assess proper
identification of the performance obligations in the contracts and allocation of theconsideration amongst the performance obligation (such as the A400M contract and spacesystems contracts), the completeness and valuation of the variable considerations included in
the transaction price (notably for A400M contract and space systems contracts) and thetiming of transfer of control.
In order to evaluate the significant judgments and estimates made by management, we readsupporting contractual agreements, met with sales representatives and program teams tounderstand and validate the nature of the various obligations to be rendered under thecontract and identify and discuss specific clauses that could prevent transfer of control(mostly for the sales of commercial aircraft), obtained evidence of transfer of control such as
proof of delivery, tested the costs incurred, examined computation of costs progression andassessed the reasonableness of the estimated cost to complete included in the cost-to-comemethod for performance obligation recognized over time (notably for A400M development
and space systems contracts). We also evaluated the potential impact of the uncertain
geopolitical environment including the war in Ukraine and its related sanctions, and theCompany’s assessment thereof.
Finally, we determined that appropriate disclosures were made in the financial statements.

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Page 9Estimations related to revenues and costs at completion for the accounting of onerous contracts
and material over time contracts(Reference is made to the disclosure on Note 4 Material Accounting Policies,
Note 5 Key Estimates and Judgements, Note 12 Revenues and Gross Margin andNote 24 Provisions, Contingent Assets and Contingent Liabilities of the financial statements)
Risk

The Group has a large portfolio of long-term contracts for which it needs to assess therevenues and costs at completion in order to recognize a provision for onerous contract ifneeded, and to account for revenue related to material over time contracts.
Provisions for onerous contracts such as for the A400M contract are recognized when it
becomes probable that the unavoidable costs of meeting the obligations under the contract
exceed the economic benefits expected to be received under the contract.
The identification and determination of the provisions for onerous contracts and revenue
recognition of over time contracts require management’s significant judgment andassumptions associated with estimated revenue and costs at completion of the program, theachievement of technical milestones, production plan, performance guarantees as well as key
risks such as expected outcome from ongoing negotiations with customers, penalties for delay
or technical non-compliance. We also considered the potential risk of management overrideof controls or other inappropriate influence over the financial reporting process.

Our audit
approach

Our audit procedures included, amongst others, evaluating the appropriateness of theCompany’s accounting policies related to estimations for onerous contracts according to IAS
37 “Provisions, contingent liabilities and contingent assets” and whether the accounting
policies have been applied consistently or whether changes, if any, are appropriate in thecircumstances.
We evaluated the design and implementation and, if considered appropriate in the context of
our audit of the financial statements, tested the operating effectiveness of controls foraccounting for onerous contracts and for the assessment of revenues and costs at completion.
We also performed substantive procedures on individually significant programs. We evaluatedmanagement’s assumptions in the identification and determination of, amongst others, thestage of completion of a project and estimates to complete for both revenue and costs. We
tested the costs incurred to date and the accuracy or appropriateness, and completeness ofthe data used in developing these key estimates.
We also evaluated management’s assessment of key contract risks and opportunities todetermine whether these are appropriately reflected in the total estimated costs atcompletion, paid specific attention to technical and market developments including inflation
risks and ongoing litigations, contractual obligations and negotiations with customers. We
performed inquiries with the program teams and Heads of Programs in order to confirm ourunderstanding of the program status and associated risks which may affect total estimatedcosts at completion.

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Estimations related to revenues and costs at completion for the accounting of onerous contracts
and material over time contracts(Reference is made to the disclosure on Note 4 Material Accounting Policies,
Note 5 Key Estimates and Judgements, Note 12 Revenues and Gross Margin andNote 24 Provisions, Contingent Assets and Contingent Liabilities of the financial statements)
We challenged management’s key assumptions by discussing and reviewing correspondencewith customers, considered the accuracy or appropriateness, and consistency of similar
estimates made in previous years and corroborated the key assumptions with the latest
contractual information.
Finally, we determined that appropriate disclosures were made in the financial statements.

Recoverability of key program assets - long-lived assets(Reference is made to the disclosures on Note 4 Material Accounting Policies,
Note 19 Intangible Assets and Note 20 Property, Plant and Equipment of the financial
statements)
Risk

Recoverability of capitalized program development costs, other intangible assets and jigs andtools (long-lived assets) needs to be tested if there is an indicator of impairment or thereversal thereof.
The main estimates to determine if an impairment of long-lived assets has to be recognized
are the future cash flows and the appropriate discount rates.
Due to the inherent uncertainty involved in forecasting future revenues and costs andinterpreting contractual and commercial positions in determining impairments especially formaterial early-stage/multi-year programs, this is a key audit area.
We considered whether the key judgments and assumptions indicated a management
override of controls that may represent a risk of material misstatement due to fraud.
Inherent uncertainties also include that new or amended climate change related laws andregulations, political decisions and/or social context may result in the need to revise existing
estimates. Climate change related estimation processes, measurement systems and reporting
standards are expected to further develop over time, which also might result in changes in
estimates.

Our audit
approach

Our audit procedures included, amongst others, evaluating the appropriateness of theCompany’s accounting policies related to estimations for recoverability of assets according to
IAS 36 “Impairment of assets” and IAS 38 “Intangible assets” and evaluating whether theaccounting policies have been applied consistently or whether changes, if any, are appropriate
in the circumstances.
We evaluated the design and implementation and, if considered appropriate in the context of
our audit of the financial statements, tested the operating effectiveness of controls for
identifying and recording impairments of long-lived assets.

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Recoverability of key program assets - long-lived assets(Reference is made to the disclosures on Note 4 Material Accounting Policies,
Note 19 Intangible Assets and Note 20 Property, Plant and Equipment of the financial
statements)
We evaluated the analysis performed by management regarding indicators of impairment,
considering notably future expected orders and deliveries. If an indicator of impairment was
identified, we evaluated the integrity of management’s impairment model.
For long-lived assets, we evaluated management’s assumptions for the discount rate, thedetermination of the forecasted revenue (including the timing of expected deliveries orservices and estimated selling price), cost to be incurred (including any contractual penalties
or inflation impact), the expected gross margin, including performing sensitivity analysis toevaluate the impact of changing some assumptions such as the discount rate or key businessparameters (a.o. price, growth rate), and for the assumptions related to useful life of the
program in the context of climate change. We also performed inquiry of the Program
Controller and Head of Programs to confirm our understanding of the status of the program.
Finally, we determined that appropriate disclosures were made in the financial statements.

Accounting for derivative financial instruments and hedge ineffectiveness(Reference is made to Note 37 Financial Instruments of the financial statements)
Risk

The Company operates in a business environment that is exposed to currency volatility. A
significant portion of the Company’s revenue is denominated in
US dollars, while a major part of its costs is incurred in Euros and, to a lesser extent,
in Pound Sterling. In response to these currency risks the Company uses financial instruments(currency forwards) to mitigate the exposure to changes in currency rates.
The Company applies cash-flow hedge accounting. The accounting policy allows the Company
to re-position the foreign currency hedges and avoid hedge disqualification when a hedged
aircraft is postponed. This is conditioned by the Company’s ability to demonstrate the absenceof a reduction in the number of hedged aircraft over the foreign currency exchange
management hedging horizon.
The magnitude of the Company’s hedge portfolio entails a significant “mark to market”
valuation risk. Furthermore, potential changes in the delivery assumptions related to aircraft
cancellations, customer defaults and aircraft postponement beyond the foreign currency
exchange management hedging horizon could lead to disqualification of the associated cashflow hedges and incorrect accounting.

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Accounting for derivative financial instruments and hedge ineffectiveness(Reference is made to Note 37 Financial Instruments of the financial statements)
Our audit
approach

Our audit procedures included, amongst others, evaluating the appropriateness of theCompany’s accounting policies related to valuation of financial instruments and hedge
accounting according to IFRS 9 “Financial Instruments” and IFRS 13“Fair Value Measurement” and whether the accounting policies have been appliedconsistently or whether changes, if any, are appropriate in the circumstances.
With the involvement of our Treasury specialists, we evaluated the design andimplementation and if considered appropriate in the context of our audit of the financial
statements, tested the operating effectiveness of controls around the Company’s central
treasury system. We independently calculated the valuation of the treasury portfolio andevaluated the application of the cash flow hedge accounting rules.
To the extent we considered appropriate in the context of our audit of the financial
statements, we obtained counterparty confirmation of the outstanding financial instruments
to verify the existence and ownership of the hedge portfolio. Based ona sample of financial derivative instruments we evaluated whether the fair value of thefinancial instruments was correctly determined.
We verified the documentation of the hedged items supported by both the recoverable
backlog and forecasted production rates over the foreign currency exchange management
hedging horizon. We tested the highly probable assessmentof future aircraft delivery as performed by the Company and challenged key management
assumptions pertaining to order cancellation, airline default and aircraft rescheduling risks.
Finally, we determined that appropriate disclosures were made in the financial statements.

Report on other information included in the annual report
The annual report contains other information in addition to the financial statements and our auditor’s report
thereon.
Based on the following procedures performed, we conclude that the other information:• Is consistent with the financial statements and does not contain material misstatements• Contains the information as required by Part 9 of Book 2 of the Dutch Civil Code for the management report andthe other information as required by Part 9 of Book 2 of the Dutch Civil Code and as required by Sections 2:135band 2:145 sub-Section 2 of the Dutch Civil Code for the remuneration report

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We have read the other information. Based on our knowledge and understanding obtained through our audit of thefinancial statements or otherwise, we have considered whether the other information contains material
misstatements. By performing these procedures, we comply with the requirements of Part 9 of Book 2 and Section
2:135b sub-Section 7 of the Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed issubstantially less than the scope of those performed in our audit of the financial statements.
The board of directors is responsible for the preparation of the other information, including the management reportin accordance with Part 9 of Book 2 of the Dutch Civil Code, other information
as required by Part 9 of Book 2 of the Dutch Civil Code and for ensuring that the remuneration report
is drawn up and published in accordance with Sections 2:135b and 2:145 sub-Section 2 of the Dutch Civil Code.

Report on other legal and regulatory requirements and ESEF
Engagement
We were engaged by the general meeting as auditor of Airbus SE on 28 April 2016, as of the audit for the year 2016and have operated as statutory auditor ever since that date.
No prohibited non-audit services
We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on specificrequirements regarding statutory audit of public-interest entities.
European Single Electronic Reporting Format (ESEF)
Airbus SE has prepared the annual report in ESEF. The requirements for this are set out in the
Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single
electronic reporting format (hereinafter: the RTS on ESEF).
In our opinion, the annual report, prepared in the XHTML format, including the partially marked-up consolidated
financial statements, as included in the reporting package by Airbus SE, complies in all material respects with the
RTS on ESEF.
The board of directors is responsible for preparing the annual report, including the financial statements, inaccordance with the RTS on ESEF, whereby the board of directors combines the various components into a single
reporting package.
Our responsibility is to obtain reasonable assurance for our opinion whether the annual report in this reporting
package complies with the RTS on ESEF.
We performed our examination in accordance with Dutch law, including Dutch Standard 3950N “Assuranceopdrachten inzake het voldoen aan de criteria voor het opstellen van een digitaal verantwoordingsdocument”(assurance engagements relating to compliance with criteria for digital reporting).

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Our examination included amongst others:• Obtaining an understanding of the Company’s financial reporting process, including the preparation of thereporting package• Identifying and assessing the risks that the annual report does not comply in all material respects with the RTS
on ESEF and designing and performing further assurance procedures responsive to those risks to provide a basis
for our opinion, including:• Obtaining the reporting package and performing validations to determine whether the reporting package
containing the Inline XBRL instance document and the XBRL extension taxonomy files, has been prepared inaccordance with the technical specifications as included in the RTS on ESEF
• Examining the information related to the consolidated financial statements in the reporting package todetermine whether all required mark-ups have been applied and whether these arein accordance with the RTS on ESEF

Description of responsibilities regarding the financial statements

Responsibilities of the board of directors and the audit committee for the financial
statements
The board of directors is responsible for the preparation and fair presentation of the financial statements inaccordance with EU-IFRSs and Part 9 of Book 2 of the Dutch Civil Code. Furthermore, the board of directors is
responsible for such internal control as it determines is necessary to enable the preparation of the financial
statements that are free from material misstatement, whether due to fraud or error.
As part of the preparation of the financial statements, the board of directors is responsible for assessing theCompany’s ability to continue as a going concern. Based on the financial reporting framework mentioned, the boardof directors should prepare the financial statements using the going concern basis of accounting unless the board of
directors either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.
The board of directors should disclose events and circumstances that may cast significant doubt on the Company’s
ability to continue as a going concern in the financial statements.
The audit committee of the board of directors is responsible for overseeing the Company’s financial reporting
process.

Our responsibilities for the audit of the financial statements
Our objective is to plan and perform the audit engagement in a manner that allows us to obtain sufficient andappropriate audit evidence for our opinion.
Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect allmaterial errors and fraud during our audit.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of theeffect of identified misstatements on our opinion.

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We have exercised professional judgment and have maintained professional scepticism throughout the audit, in
accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. The
Information in support of our opinion section above includes an informative summary of our responsibilities andthe work performed as the basis for our opinion.
Our audit further included amongst others:• Performing audit procedures responsive to the risks identified, and obtaining audit evidence that is sufficientand appropriate to provide a basis for our opinion• Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theCompany’s internal control• Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by the board of directors• Evaluating the overall presentation, structure and content of the financial statements, including the disclosures• Evaluating whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation
Communication
We communicate with the audit committee of the board of directors regarding, amongst other matters, the planned
scope and timing of the audit and significant audit findings, including any significant findings in internal control that
we identify during our audit. In this respect we also submit an additional report to the audit committee of the boardof directors in accordance with Article 11 of the EU Regulation on specific requirements regarding statutory audit ofpublic-interest entities. The information included in this additional report is consistent with our audit opinion in thisauditor’s report.
We provide the audit committee of the board of directors with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other mattersthat may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the board of directors, we determine the key audit matters as those mattersthat were of most significance in the audit of the financial statements. We describe these matters in our auditor’sreport unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, not communicating the matter is in the public interest.

Amsterdam, 15 February 2024

Ernst & Young Accountants LLP

signed by N.M. Pul

Financial Statements 2023

Airbus109

Chapter

110 Airbus

Financial Statements 2023

3
Airbus SE IFRS Company
Financial Statements
IFRS Company Income Statement for the Years Ended 31
December 2023 and 2022

112

IFRS Company Statement of Comprehensive Income for theYears Ended 31 December 2023 and 2022

112

IFRS Company Statement of Financial Position for the Years
Ended 31 December 2023 and 2022

113

IFRS Company Statement of Cash Flows for the Years Ended
31 December 2023 and 2022

114

IFRS Company Statement of Changes in Equity for the Years
Ended 31 December 2023 and 2022

115

Financial Statements 2023

Airbus111

3. Airbus SE IFRS Company Financial Statements
IFRS Company Income Statement for the Years Ended 31 December 2023 and 2022

IFRS Company Income Statement for the Years
Ended 31 December 2023 and 2022
Note
2023

2022

Operating income

65

73

Operating expenses

(79)

(74)

7,477

219

(In € million)

Income from investments
Impairment of investments

7,
10

(19)

0

Total operating result

7

7,444

218

Interest income

1,015

311

Interest expense(1,744)

(468)

167

391

(562)

234

6,882

452

2

(17)

6,884

435

Other financial result
Total financial result

8

Profit (Loss) before income taxes
Income Taxes

Profit (Loss) for the period

9

IFRS Company Statement of Comprehensive
Income for the Years Ended 31 December 2023
and 2022(In € million)

2023

2022

Profit (Loss) for the period

6,884

435

Change in fair value of financial assets

280

(676)

Other comprehensive income, net of tax

280

(676)

7,164

(241)

Other comprehensive income
Items that may be reclassified to profit or loss:

Total comprehensive income of the period

112 Airbus

Financial Statements 2023

3. Airbus SE IFRS Company Financial Statements
IFRS Company Statement of Financial Position for the Years Ended 31 December 2023 and 2022

IFRS Company Statement of Financial Position
for the Years Ended 31 December 2023 and 2022
Note

2023

2022

Investments in subsidiaries and associates

10

20,145

20,270Long‑term financial assets

11

4,497

2,040

Non‑current other financial assets

11

2,280

4,233

18

14

(In € million)

AssetsNon‑current assets

Non‑current other assets
Deferred tax assets

9

0

0

Non‑current securities

15

6,986

5,662

33,92632,219Total non‑current assets
Current assets

12

28

Short‑term financial assets

Trade receivables
11

73

35

Current other financial assets

11

2,029

3,596

Current accounts Airbus companies

11

4,663

9,670

Current other assets
Current securities

15

Cash and cash equivalents

15

167

139

1,162

1,692

14,61813,283

Total current assets

22,72428,443

Total assets

56,65060,662Equity and liabilities
Stockholders’ equity

14

Capital stock

791

789

Share premium

3,983

3,837

Retained earnings

2,798

3,616

Legal reserves

(354)

(634)

Treasury shares

(390)

(68)

Result of the year

6,884

435

13,712

7,975

Total equity
Non‑current liabilities
Long‑term financing liabilities

15

7,719

7,903

Non‑current other financial liabilities

11

3,243

5,653

Deferred tax liabilities

9

0

0

10,962

13,556

Total non‑current liabilities

3

Current liabilities
Short‑term financing liabilities

15

818

0

Current accounts Airbus companies

11

28,93835,355Current other financial liabilities

11

2,049

3,602

Current other liabilities

171

174

Total current liabilities

31,976

39,131

Total equity and liabilities

56,65060,662Financial Statements 2023

Airbus113

3. Airbus SE IFRS Company Financial Statements
IFRS Company Statement of Cash Flows for the Years Ended 31 December 2023 and 2022

IFRS Company Statement of Cash Flowsfor the Years Ended 31 December 2023 and 2022
2023

2022

6,884

435

Interest income(1,015)(311)

Interest expense

1,744

468

Interest received

974

342

(1,701)(476)
17(In € million)

Note

Operating Activities
Profit (Loss) for the period (Net income)
Adjustments to reconcile profit for the period to cash provided by operating activities:

Interest paid
Tax expense (income)

9(3)

Impairment of Investments

10

19

0

(132)

(561)

(7,474)(194)

Valuation adjustments
Dividends income
Change in current and non‑current provisions

(5)

10

Change in other operating assets and liabilities

(10)

(117)

Trade receivables

15

(9)

Trade liabilities

(6)

(44)

Other assets and liabilities and others

(19)

(64)

Cash provided by (used for) operating activities

(718)

(387)

Investing activities
Acquisitions of subsidiaries, joint ventures, businesses and Participations (net of cash)(765)(2,374)

Payments for long‑term financial assets(2,957)(1,581)

Proceeds from long‑term financial assets

422

954

Proceeds from subsidiaries, joint ventures, businesses and participations (net of cash)

1,206

43

Dividends received

7,474

194

Payments for investments in securities(2,316)(1,674)

Proceeds from disposals of securities

1,749

1,382

Cash provided by (used for) investing activities

4,813(3,056)

Financing activities
Increase in financing liabilities
Repayment of financing liabilities

213

0

0

(1,569)Change in current accounts Airbus companies (1)(1,206)

6,075

Cash distribution to Airbus SE shareholders(1,421)(1,181)

Changes in capital

161

140

Change in treasury shares

(334)

(36)

(2,587)

3,429

Cash provided by (used for) financing activities
Effect of foreign exchange rate changes on cash and cash equivalents

(173)

152

Net increase in cash and cash equivalents

1,335

138

Cash and cash equivalents at beginning of period

13,283

13,145

14,61813,283

Cash and cash equivalents at end of period

15(1) Airbus SE maintains current accounts with group entities. Total assets and total liabilities in this regard are presented in the balance sheet. The changes in thesecurrent accounts are presented net in the Company statement of Cash Flows as reflecting the changes in net cash‑pool position for the company.

114 Airbus

Financial Statements 2023

3. Airbus SE IFRS Company Financial Statements
IFRS Company Statement of Changes in Equity for the Years Ended 31 December 2023 and 2022

IFRS Company Statement of Changes in Equity
for the Years Ended 31 December 2023 and 2022
Legal reserves (1)(In € million)

Note

Balance at 1 January 2022

Capitalstock

Financial
Share Retained assets at
premium earnings fair value

Cash
flow
hedgesTreasurysharesTotalequity

787

3,712

4,682

42

0

(45)

9,178

Profit (Loss) for the period

0

0

435

0

0

0

435

Other comprehensive income

0

0

0

(676)

0

0

(676)

Total comprehensive income for the period

0

0

435

(676)

0

0

(241)

Capital increase

2

125

0

0

0

0

127

Share‑based payment (IFRS 2)

0

0

115

0

0

0

115

Cash distribution to Airbus SE shareholders

00(1,181)000(1,181)

Change in treasury shares

0

0

0

0

0

(23)

(23)

789

3,837

4,051

(634)

0

(68)

7,975

Profit (Loss) for the period

0

0

6,884

0

0

0

6,884

Other comprehensive income

0

0

0

280

0

0

280

Total comprehensive income for the period

0

0

6,884

280

0

0

7,164

2

146

0

0

0

0

148

0

0

168

0

0

0

168

Balance at 31 December 2022

Capital increase

14

Share‑based payment (IFRS 2)
Cash distribution to Airbus SE shareholders

14

0

0

(1,421)000(1,421)

Change in treasury shares

14

0

0

0

0

0

(322)

(322)

791

3,983

9,682

(354)

0

(390)

13,712

Balance at 31 December 2023
(1) The distribution of Legal Reserves, when positive, is restricted by Dutch law.

3

Financial Statements 2023

Airbus115

Chapter

116 Airbus

Financial Statements 2023

4
Notes to the IFRS Company
Financial Statements
4.1 Basis of Preparation

119

4.2 Company Performance122

4.3 Operational Assets and Liabilities

126

4.4 Employees

129

4.5 Capital Structure and Financial Instruments

129

4.6 Other Notes

142

Financial Statements 2023

Airbus117

4. Notes to the IFRS Company Financial Statements

Contents
10. Investments in Subsidiaries, Associates
and Participations

126

11. Financial Assets and Financial Liabilities

128

12. Commitments and Contingencies

128

119

4.4 Employees

129

13. Number of Employees

129

4.5 Capital Structure and Financial Instruments

129

4.1 Basis of Preparation

119

1. The Company

119

2. Geopolitical and Macroeconomic Environment

119

3. Climate impacts

119

4. Material Accounting Policies
5. Key Estimates and Judgements

120

6. Related Party Transactions

121

4.2 Company Performance122

14. Total Equity

129

7. Total Operating Result

122

15. Cash, Securities and Financing Liabilities

131

16. Information about Financial Instruments

134

4.6 Other Notes

142

8. Total Financial Result

122

9. Income Taxes

123

4.3 Operational Assets and Liabilities

126

118 Airbus

Financial Statements 2023

17. Auditor Fees

142

18. Events after the Reporting Date

142

4. Notes to the IFRS Company Financial Statements
4.1 Basis of Preparation

4.1 Basis of Preparation
1.

The Company

The Company’s principal activity is acting as a holding andmanagement company for the subsidiaries of Airbus SE, the“Company”, a European public limited‑liability company(Societas Europaea) with its seat (statutaire zetel) in
Amsterdam, The Netherlands, its registered address at
Mendelweg 30, 2333 CS Leiden, The Netherlands, and2.

registered
with
the
Dutch
Commercial
Register(Handelsregister) under number 24288945. The Company islisted on the European stock exchanges in Paris, Frankfurt am
Main, Madrid, Barcelona, Valencia and Bilbao. The IFRSFinancial Statements were authorised for issue by theCompany’s Board of Directors on 14 February 2024.

Geopolitical and Macroeconomic Environment

Regarding the impact of changes in the macroeconomic environment, please refer to “– Note 2: Geopolitical and Macroeconomic
Environment” of the Consolidated Financial Statements.

3.

Climate impacts

Climate change may have a major impact on both theCompany’s industrial operations and its upstream anddownstream value chains, including aircraft direct operations

4.

and the wider air transport ecosystem. Regarding the Climate
impacts please refer to “– Note 3: Climate impacts” of theConsolidated Financial Statements.

Material Accounting Policies

Basis of preparation — The Company’s Financial Statements
are prepared in accordance with International Financial
Reporting Standards (“IFRS”), issued by the International
Accounting Standards Board (“IASB”) as endorsed by theEuropean Union (“EU”) and with Part 9 of Book 2 of theNetherlands Civil Code. They are prepared and reported in euro(“€”) and all values are rounded to the nearest million
appropriately. Due to rounding, numbers presented may not
add up precisely to the totals provided and percentages may
not precisely reflect the absolute figures.
In the Company Financial Statements of Airbus SE, unlessotherwise disclosed, the same accounting principles have been
applied as set out in the Notes to the Consolidated Financial
Statements, except for the valuation of the investments aspresented under investments in subsidiaries and associates in
the Company Financial Statements. These policies have been
consistently applied to all years presented.

In the Company Financial Statements, the investments in
subsidiaries and associates are recorded at acquisition cost.In
the Company Income Statement, dividends received frominvestments are recorded as dividend income.
Due to this application, the Company equity and net result are
not equal to the consolidated equity and net result. A
reconciliation of the total shareholders’ equity and profit for theperiod is presented in “– Note 14: Total Equity” of the Company
Financial Statements.
The Company Financial Statements have been prepared on ahistorical cost basis, except for the equity instruments,
securities and derivative instruments that have been measured
at fair value.
Regarding the application of new, revised or amended IFRS
issued and applying from 1 January 2023 and issued but not
yet applied please refer to “– Note 6: Change in Accounting
Policies and Disclosures” of the Consolidated Financial
Statements.

Financial Statements 2023

Airbus4119

4. Notes to the IFRS Company Financial Statements
4.1 Basis of Preparation

Amendments to IAS 12 “Income Taxes – International Tax Reform – Pillar Two Model
Rules”
The amendments introduce a temporary exception to theaccounting requirements for deferred taxes in IAS 12, so thatan entity would neither recognise nor disclose information
about deferred tax assets and liabilities related to Pillar Two
income taxes. As a consequence, no deferred tax assets or
liabilities are recognised in the Company Financial Statements
as of 31 December 2023.

In addition, no material changes are expected in the Company
Financial Statements of Airbus SE from the implementation of
the new standards not yet applied. A number of new or revised
standards, amendments and improvements to standards aswell as interpretations are not yet effective for the year ended
31 December 2023 and have not been applied in preparing
these Financial Statements and early adoption is not planned:

IASB effective date for annual reporting Endorsement
statusperiods beginning on or afterStandards and related amendments
Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

1 January 2024

Endorsed

Amendments to IAS 1 “Classification of Liabilities as Current or Non‑current”

1 January 2024

Endorsed

Amendments to IAS 1 “Non‑current Liabilities with Covenants”

1 January 2024

Endorsed

Amendments to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial
Instruments : Disclosures: Supplier Finance Arrangements”

1 January 2024

Not yetendorsed

Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates:
Lack of Exchangeability”

1 January 2025

Not yetendorsed

The information with regard to Capital Management isdisclosed in “– Note 35: Capital Management”, further
information about Litigation and Claims refers to “– Note 38:
Litigation and Claims” and Events after the Reporting Date aredisclosed in “– Note 40: Events after the Reporting Date” of theConsolidated Financial Statements.
Further information about Share‑based payment and Employee
Stock Ownership Plans (ESOP) is presented in “– Note 32:

5.

Unless reference is made to the accounting policies describedin the Consolidated Financial Statements, the main accounting
policies applied in the preparation of these Company Financial
Statements are described in each accounting area. These
accounting policies have been consistently applied to all
financial years presented, unless otherwise stated.

Key Estimates and Judgements

The preparation of the Company Financial Statements requires
the use of estimates and assumptions. In preparing these
Financial Statements, management exercises its best
judgement based upon its experience and the circumstancesprevailing at that time. The estimates and assumptions are
based on available information and conditions at the end of thefinancial period presented and are reviewed on an ongoingbasis.

120 Airbus

Share‑Based Payment” and “– Note 33: Remuneration” of theConsolidated Financial Statements.

Financial Statements 2023

The details regarding the use of estimates and judgements aredescribed in “– Note 5: Key Estimates and Judgements” of theConsolidated Financial Statements.
Key accounting estimates and judgements affecting theassessment and measurement of impairment are included in “–
Note 10: Investments in Subsidiaries, Associates andParticipations” of the Company Financial Statements.

4. Notes to the IFRS Company Financial Statements
4.1 Basis of Preparation

6.

Related Party Transactions

Key Management Personnel
The details regarding the compensation of key management personnel are described in “– Note 33: Remuneration” of theConsolidated Financial Statements.

Intercompany Transactions
A comprehensive exchange of internal services between thesubsidiaries of a multinational corporation like Airbus SE iscommon practice. In its responsibility as holding company tomanage its subsidiaries and to assist the business activities

conducted by Airbus companies and its subsidiaries, Airbus SE
applies transfer prices for its business activities in conformity
with market levels and in accordance with national andinternational tax requirements (arm’s length principle).

The following table discloses the related party intercompany transactions in 2023 and 2022:
2023

2022

Total transactions
with subsidiaries

Total transactions
with associates

Total transactions
with subsidiaries

Total transactions
with associates

Sales of goods and services and other income (1)

7,939

22

377

9

Purchase of goods and services and other expenses(1,227)

(63)

(265)

(9)

Receivables at 31 December

4,675

1

9,698

1

Liabilities at 31 December(26,804)(2,135)(34,101)

(1)

3,530

86

1,971

87

Loans received / Other liabilities due at 31 December

0(1,813)0(1,255)Hedge relationships receivables at 31 December

0

0

7,081

0

Hedge relationship payables at 31 December

0

0

(770)

0

(In € million)

Loans granted / Other receivables due at 31 December(1) mainly including dividends received for €7,474 million.

For further information about granted guarantees to subsidiaries please refer to “– Note 12: Commitments and Contingencies” of
the Company Financial Statements.
For further information about the impairment and the expected credit losses on receivables, please refer to “– Note 16.7:
Impairment Losses” of the Company Financial Statements.

4

Financial Statements 2023

Airbus121

4. Notes to the IFRS Company Financial Statements
4.2 Company Performance

4.2 Company Performance
7.

Total Operating Result
Note
2023

2022

Operating income

65

73

Corporate services rendered to Airbus companies

65

73

Operating expenses

(79)

(74)

Service fees charged by Airbus companies

(26)

(17)

Administrative expenses

(53)

(57)

Income from investments

7,477

219

Dividends received from Airbus companies

7,474

194

Gain on disposal of investments

325

Expense from investments

(19)

0

(19)

0

7,444

218

(In € million)

Impairment

10

Total operating result

Corporate services rendered to Airbus companies decreased by €-8 million to €65 million (2022: €73 million). In 2023, Airbus SE
received a dividend from Airbus SAS of €7,383 million.

8.

Total Financial Result
Note(In € million)

2023

2022

Interest result

(729)

(157)

Interest income from securities measured at fair value through OCI

148

35

Interest income (expenses) from securities measured at fair value through P&L

358

75

Interest income on financial assets measured at amortised cost

509

201

Interest expense on financial liabilities measured at amortised cost

(1,744)

(468)

167

391

Other financial result
Change in fair value measurement of financial assets

11

163

464

Impairment and Expected Credit Loss

17

2

5

2

(78)

(562)

234

Others(1)

Total financial result(1) Other includes various amounts such as foreign exchange result and bank fees.

The Company is acting as a financial market agent on behalf of its subsidiaries, therefore the fair value changes of derivatives arereported on a net basis.

122 Airbus

Financial Statements 2023

4. Notes to the IFRS Company Financial Statements
4.2 Company Performance

9.

Income Taxes

The Company is tax registered in the Netherlands. The
Company is heading a fiscal unity, which also includes Airbus
Defence and Space Netherlands B.V. Until 31 December 2021
Airbus Group Finance B.V. was included (see “– Note 10:
Investments in Subsidiaries, Associates and Participations” of
the Company Financial Statements). Therefore, the Company isseverally and jointly liable for income tax liabilities of the fiscal
unity as a whole.
Income taxes — The tax expense for the year comprises
deferred tax. Tax is recognised in the Income Statement,
except to the extent that it relates to items recognised directlyin Other Comprehensive Income.
The amount of income tax included in the Income Statement isdetermined in accordance with the rules established by the tax

authorities in the Netherlands, based on which income taxes
are payable or recoverable.
Deferred tax assets and/or liabilities, arising from temporary
differences between the carrying amounts of assets andliabilities and the tax base of assets and liabilities, arecalculated using the substantively enacted tax rates expected
to apply when they are realised or settled. Deferred tax assets
are recognised if it is probable that they will be realised.
On 19 December 2023, the government of the Netherlands,
where the parent company is incorporated, enacted the Pillar
Two income taxes legislation effective from 1 January 2024.
Based on its assessment, the Company does not expect amaterial exposure to Pillar Two.

The expense for income taxes is comprised of the following:
2023

2022

Current tax income (expense)2(2)

Deferred tax income (expense)

0

(15)

Total

2

(17)

(In € million)

The following table shows reconciliation from the theoretical income tax (expense) using the Dutch corporate tax rate to thereported income tax (expense):(In € million)

2023

2022

Profit (loss) before income taxes

6,882

452

Corporate income tax rate

25.8%

25.8%

Expected income (expense) for income taxes(1,776)(117)

Effects from tax rate differentials / Change of tax rate

00

Non‑taxable income from investment and associates

1,970

170

Income from other companies within the fiscal unity

(1)

(1)

Impairment on investment and associates

00

Other non‑deductible expenses and tax‑free income

(2)

(3)

(190)

(66)

2

(17)

Changes in valuation allowances (1)Reported income (expense) for income taxes(1) Reassessment of recoverability of deferred tax assets based on future taxable profits.

Financial Statements 2023

Airbus4123

4. Notes to the IFRS Company Financial Statements
4.2 Company Performance

Deferred income taxes as of 31 December 2023 are related to the following assets and liabilities:

1 January 2023

Other movements

Movement
throughincomestatement

31 December 2023
Deferredtax
assetsDeferredtax
liabilities(In € million)

Deferredtax
assetsDeferredtax
liabilities

OCI

OthersDeferredtax benefit(expense)

Securities

164

0

(73)

0

0

91

0

Financial instruments

125

(18)

0

0

187

307

(13)

Net operating loss and tax loss carry forwards

60

0

0

0

8

68

0

Deferred tax assets (liabilities) before offsetting

349

(18)

(73)

0

195

466

(13)

Valuation allowances on deferred tax assets

(331)

0

73

0

(195)

(453)

0

Set‑off

(18)

18

0

0

0

(13)

13

0

0

0

0

0

0

0

Net deferred tax assets (liabilities)

Deferred income taxes as of 31 December 2022 are related to the following assets and liabilities:

1 January 2022

Other movements

Movement
throughincomestatement

31 December 2022
Deferredtax
assetsDeferredtax
liabilities(In € million)

Deferredtax
assetsDeferredtax
liabilities

OCI

OthersDeferredtax benefit(expense)

Securities

0

(15)

179

0

0

164

0

Financial instruments

44

0

0

0

63

125

(18)

Net operating loss and tax loss carry forwards

75

0

0

0

(15)

60

0

Deferred tax assets (liabilities) before offsetting

119

(15)

179

0

47

349

(18)

Valuation allowances on deferred tax assets

(104)

0

(164)

0

(63)

(331)

0

Set‑off

(15)

15

0

0

0

(18)

18

0

0

15

0

(15)

0

0

Net deferred tax assets (liabilities)

124 Airbus

Financial Statements 2023

4. Notes to the IFRS Company Financial Statements
4.2 Company Performance

Details of net deferred taxes recognised cumulatively in equity are as follows:
31 December
2023

2022

Financial instrument at fair value through OCI

0

0

Total

0

0

(In € million)

Deferred taxes on net operating losses (“NOLs”), trade tax loss carry forwards and tax credit carry forwards are:
31 December
2023

2022

263

231

Tax credit carry forwards

00

Tax effect

68

60

Valuation allowances

(68)

(60)

0

0

(In € million)

NOLsDeferred tax assets on NOLs and tax credit carry forwards

As of 1 January 2023, tax losses can be carried forward indefinitely but profits in one year which exceed €1 million will only beoffsettable for up to 50 percent of that higher taxable profit against losses, minus an amount of €1 million.

4

Financial Statements 2023

Airbus125

4. Notes to the IFRS Company Financial Statements
4.3 Operational Assets and Liabilities

4.3 Operational Assets and Liabilities
10.

Investments in Subsidiaries, Associates and Participations(In € million)

Subsidiaries

Associates

Participations

Total

16,30949

977

17,334

Additions

2,369

0

5

2,374

Disposals

(18)

0

0

(18)

Impairment

0

0

0

0

115

0

0

115

0

0

464

464

18,77549

1,446

20,270Additions

791

0

0

791

Disposals(1,228)00(1,228)

Impairment

(19)

0

0

(19)

Share‑based payment (IFRS 2)

168

0

0

168

0

0

163

163

18,487

49

1,609

20,145

Balance at 1 January 2022

Share‑based payment (IFRS 2)
Fair value changes through Profit or Loss

Balance at 31 December 2022

Fair value changes through Profit or Loss (1)Balance at 31 December 2023

(1) For more details, please refer to “– Note 21: Other Investments and Other Long‑Term Financial Assets” of the Consolidated Financial Statements.

Investments in Subsidiaries, Associated Companies and Participations
Investments in subsidiaries and associated companies arestated at cost, less impairment. Dividend income from theCompany’s subsidiaries and associated companies isrecognised when the right to receive payment is established.
The participations are stated at fair value with mainly changes
in fair value recognised in Profit and Loss.
For the purpose of impairment testing all consolidated
subsidiaries are allocated to cash generating units (“CGU”) in a
way they are monitored for internal management purposes. At
each balance sheet date, the Company reviews whether there
is an indication that a CGU to which its investments in
subsidiaries and associated companies belong to are impaired.
An indication for impairment of the investments in subsidiaries
and associated companies may include, respectively,
management’s downward adjustment of the strategic plan, asignificant decrease in the share price of a publicly listed

126 Airbus

Financial Statements 2023

company or a significant decrease in future sales. Further
indications for impairment of its investments may include otherareas where observable data indicates that there is ameasurable decrease in the estimated future cash flows. These
determinations require significant judgement. In making thisjudgement, management evaluates, among other factors, thefinancial performance of and business outlook for its
investments, including factors such as industry and sector
performance, changes in technology and operational andfinancing cash flow.
If any indication for impairment exists, the recoverable amountof the investments is estimated in order to determine theamount, if any, of the impairment loss. An investment isimpaired if its recoverable amount is lower than its carrying
value. The recoverable amount is defined as the higher of aninvestment’s fair value less costs of disposal and its value inuse.

4. Notes to the IFRS Company Financial Statements
4.3 Operational Assets and Liabilities

The determination of the investment’s value in use is based on
calculations using pre‑tax cash flow projections. The
discounted cash flow method is used to determine therecoverable amount of a CGU to which its investments in
subsidiaries and associated companies belong. Refer to “–Note 19: Intangible assets” of the Consolidated Financial
Statements for more details on key assumptions used.

Impairment losses recognised in prior periods shall be reversed
only if there has been a change in the estimates or externalmarket information used to determine the investment’s
recoverable amount since the last impairment loss wasrecognised. The recoverable amount shall not exceed thecarrying amount that would have been determined had no
impairment loss been recognised in prior years.

If the recoverable amount of an investment is estimated to beless than its carrying amount, the carrying amount of theinvestment is reduced to its recoverable amount. Any
impairment loss is recognised immediately in the Income
Statement.

The annual impairment test performed in 2023 led to an
impairment charge of €19 million (2022: €0 million).

Change of Investments in Subsidiaries and Associates
In January 2023, Airbus SE made a capital contribution of€160 million in Aerore S.A.
On 9 October 2023, Airbus SE acquired the remaining sharesof Airbus Defence and Space GmbH for an amount of€572 million. In December 2023 Airbus Helicopter SAS enteredinto the capital of Airbus Defence and Space GmbH in theframe of internal restructuring. The company remained
indirectly fully owned by Airbus SE.

During the last quarter of 2023, Airbus Defence andSpace GmbH distributed its free capital reserve to Airbus SE
for an amount of €1,200 million.
Airbus SE increased its contribution to Skytra for an amount of€19 million fully impaired.
During the year 2023, Airbus SE made other contributions toparticipations and subsidiaries for a total amount of €12 million.

Information on principal investments of the Company:
2023

2022

%

Company

Head office100.00100.00

Aero Ré S.A.

Bertrange (Luxembourg)

61.47

88.71

Airbus Defence and Space GmbH

Taufkirchen (Germany)

100.00100.00Airbus Defence and Space Limited

Stevenage (UK)100.00100.00Airbus Defence and Space Netherlands B.V.

Leiden (Netherlands)

100.00100.00Airbus Defence and Space S.A.

Madrid (Spain)

100.00100.00Airbus Bank GmbH

Munich (Germany)

94.73

94.73

Airbus S.A.S.

Toulouse (France)

10.24

9.90

Dassault Aviation S.A.

Paris (France)

5.33

5.33

Premium Aerotec GmbH

Augsburg (Germany)

8.33

8.33

MIRIS

Brussels (Belgium)(1) Percentages represent share held directly by Airbus SE.

4

Financial Statements 2023

Airbus127

4. Notes to the IFRS Company Financial Statements
4.3 Operational Assets and Liabilities

11.

Financial Assets and Financial Liabilities

Financial assets at 31 December 2023 and 2022:
31 December(In € million)

2023

2022

Long‑term loans Airbus companies (1)

4,497

2,040

Positive fair values of derivative financial instruments

2,280

4,233

Non‑current financial assets

6,777

6,273

Positive fair values of derivative financial instruments

2,029

3,596

Current portion long‑term loans Airbus companies

73

35

Current accounts Airbus companies (1)

4,663

9,670

Current financial assets

6,765

13,301

13,542

19,574

Total(1) The receivables from subsidiaries include mainly transactions in connection with the cash pooling in the Company. Terms and conditions are in agreement with theprevailing market environment.

Financial liabilities at 31 December 2023 and 2022:
31 December(In € million)

2023

2022

Negative fair values of derivative financial instruments

3,243

5,653

Non‑current financial liabilities

3,243

5,653

Negative fair values of derivative financial instruments

2,049

3,602

Current accounts Airbus companies (1)28,93835,355Current financial liabilities

30,987

38,957

Total

34,23044,610(1) The liabilities to subsidiaries include mainly transactions in connection with the cash pooling in Airbus SE. Terms and conditions are in agreement with the prevailingmarket environment.

12.

Commitments and Contingencies

Off‑Balance Sheet Commitments
Airbus SE issued guarantees on behalf of Airbus companies in theamount of €11,947 million (2022: €10,508 million). The
commitments of these companies to third parties mainly relate totheir operating business as described in “– Note 20: Property, Plant
and Equipment”, “– Note 27: Sales Financing Transactions”, “–
Note 37: Financial Instruments” and “– Note 36.3: Financing
Liabilities” of the Consolidated Financial Statements.
On 8 December 2015, Airbus SE entered into a partnershipagreement to establish a corporate venture capital fund, dubbed
Airbus Venture Fund II with a total commitment amount of
US$150 million. The remaining commitment is US$6 million at
31 December 2023.
On 1 April 2019, Airbus SE entered into a partnership agreementwith effective date 1 July 2019 to establish a venture capital fund,dubbed Airbus Ventures Fund III, with a total commitment amount

128 Airbus

Financial Statements 2023

of US$100 million. The remaining commitment is US$16 million at
31 December 2023.
On 22 October 2022, Airbus SE entered into a partnershipagreement to establish a venture capital fund, dubbed Airbus
Venture Fund IV, with a total commitment amount of US$75 million.
The remaining commitment is US$64 million at 31 December
2023.
In addition, the Company has two guarantees to cover its
obligation towards the Scheme and the BAE Systems pension
schemes. To mitigate its exposure, the first guarantee covers anamount up to GBP 1.25 billion for an unlimited period of time while
the second one covers an uncapped amount terminating in 2046,
respectively for the Scheme and the BAE Systems Pension
Schemes.

4. Notes to the IFRS Company Financial Statements
4.4 Employees

4.4 Employees
13.

Number of Employees

The average number of the persons employed by the Company in the Netherlands in 2023 was 19 (2022: 0).

4.5 Capital Structure and Financial Instruments
14.

Total Equity

Airbus SE’s shares are exclusively ordinary shares with a par value of €1.00. The following table shows the development of thenumber of shares issued and fully paid:
2023

2022

788,205,008

786,083,690

2,254,426

2,121,318

Issued as at 31 December

790,459,434

788,205,008

Treasury shares(3,037,467)(647,500)

Outstanding at 31 December

787,421,967

787,557,508

3,000,000,000

3,000,000,000(In number of shares)

Issued as at 1 January
Issued for ESOP

Authorised shares

Holders of ordinary shares are entitled to dividends and are entitled to one vote per share at general meetings of the Company.
Capital stock comprises the nominal amount of shares
outstanding. The addition to capital stock represents thecontribution for exercised options by employees of €2,254,426(in 2022: €2,121,318) in compliance with the implemented
Stock Option Plans and the Employee Stock Ownership Plans(“ESOP”).
Share premium mainly results from contributions in kind in thecourse of the creation of the Company, cash contributions fromthe Initial Public Offering, capital increases and reductions dueto the issuance and cancellation of shares.
Retained earnings include mainly the profit of the period andcash dividend payments to Airbus SE shareholders.
On 19 April 2023, the Annual General Meeting (“AGM”) decided
to distribute a gross amount of €1.80 per share, which was
paid on 27 April 2023. For the fiscal year 2023, the Board of
Directors will propose the payment of a dividend of €1.80 per
share and a special dividend of €1.00 per share to the 2024
Annual General Meeting taking place on 10 April 2024. The
proposed payment date is 18 April 2024.

Legal reserves include:– change from financial assets at fair value (see “– Note 16:
Information about Financial Instruments” of the Company
Financial Statements);– change in fair value of derivatives designated as cash flow
hedges (see “– Note 16: Information about Financial
Instruments” of the Company Financial Statements).
According to Dutch law, Legal reserves cannot be distributedfor dividend purposes when positive.
Treasury shares represent the amount paid or payable for own
shares held in treasury. During 2023, the number of treasury
stock held by the Company increased to 3,037,467 comparedto 647,500 as of 31 December 2022, mainly due to the sharebuybacks partly offset by vested shares in 2023 under LTIP
2019 (see “– Note 32: Share‑based Payment” of theConsolidated Financial Statements). No shares were sold backto the market nor cancelled in 2023 (2022: 0 shares).

Financial Statements 2023

Airbus4129

4. Notes to the IFRS Company Financial Statements
4.5 Capital Structure and Financial Instruments

Authorisations Granted by the Annual’ General Meeting of Airbus SE Heldon 19 April 2023
On 19 April 2023, the AGM of the Company authorised theBoard of Directors, for a period expiring at the AGM to be heldin 2024, to issue shares and to grant rights to subscribe forshares in the Company’s share capital for the purpose of:

For each operation, such powers shall not extend to issuingshares or granting rights to subscribe for shares if there is nopreferential subscription right and for an aggregate issue pricein excess of €500 million per share issuance.

– ESOPs and share‑related LTIPs, provided that such powers
shall be limited to an aggregate of 0.18% of the Company’s
authorised share capital (see “– Note 32: Share‑Based
Payment” of the Consolidated Financial Statements);

Also on 19 April 2023, the AGM authorised the Board of
Directors for an 18 months period to repurchase up to 10% of
the Company’s issued share capital at a price per share notless than the nominal value and not more than the higher of theprice of the last independent trade and the highest current
independent bid on the trading venues of the regulated marketof the country in which the purchase is carried out.

– funding the Company and its subsidiaries, provided thatsuch powers shall be limited to an aggregate of 0.3% of theCompany’s authorised share capital (see “– Note 36.3:
Financing Liabilities” of the Consolidated Financial
Statements).

Furthermore, the AGM authorised the Board of Directors todetermine on a case‑by‑case basis the share repurchaseprogrammes to be implemented by the Company, if any.

Reconciliation Consolidated to Company Equity and Net Income
The difference between the total shareholders’ equity according to the Consolidated Financial Statements and Company’s Financial
Statements as at 31 December 2023 and 2022 is as follows:
2023

2022

Consolidated equity

17,695

12,950

OCI – Restatement of investments from Consolidated to Company
Financial Statements

1,951

4,382

Retained Earnings – Restatement of investments from Consolidated toCompany Financial Statements(6,398)(9,819)Retained Earnings – Valuation investments at historical cost

1,487

1,487

Retained Earnings – Impairment of financial assets(1,023)(1,025)Company’s equity

13,712

7,975(In € million)

The difference between the net income according to the Consolidated Financial Statements and Company’s Financial Statements
for the year‑ended 31 December 2023 and 2022 is as follows:(In € million)

2023

2022

Consolidated net income

3,789

4,247

Income from investments according to Consolidated Financial Statements(4,357)(4,012)

Income from investments according to Company Financial Statements

7,452

200

Loss on / Impairment of financial assets00Other valuation differences

0

0

6,884

435

Company’s net income (Profit or loss for the period)

130 Airbus

Financial Statements 2023

4. Notes to the IFRS Company Financial Statements
4.5 Capital Structure and Financial Instruments

15.

Cash, Securities and Financing Liabilities

15.1

Net Cash
31 December
2023

2022

Cash and cash equivalents

14,61813,283Current securities

1,162

1,692

Non‑current securities

6,986

5,662

Gross cash position(In € million)

22,766

20,637

Short‑term financing liabilities (1)

(818)

0

Long‑term financing liabilities (1)(7,719)(7,903)(961)(1,394)

13,268

11,340Interest rate swap

Total(1) Including €8 million of lease liabilities.

The net cash position on 31 December 2023 amounted to €13,268 million (2022: €11,340 million), with a gross cash position of€22,766 million (2022: €20,637 million).

15.2

Cash and Cash Equivalents

Cash and cash equivalents are composed of the following elements:
31 December(In € million)

2023

2022

Bank account and petty cash

1,198

1,147

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

12,410

11,135

Short‑term securities (at fair value through OCI)

1,010

1,001

14,61813,283

Total cash and cash equivalents

Only securities with a maturity of three months or less from thedate of the acquisition, that are readily convertible to known
amounts of cash and which are subject to an insignificant riskof changes in value are recognised in cash equivalents.
The main variations are as follows:
Cash provided by€-718 million in 2023.

operatingactivities

amountedtoCash used for investing activities amounted to €4,813 million,
mainly reflecting dividends received of €7,474 million.
Cash used for financing activities amounted to €-2,587 million
and mainly reflects the decrease in current accounts Airbus
companies €-1,206 million and the dividend payment€-1,421 million (see IFRS Company Statement of Cash Flowsfor the years ended 31 December 2023 and 2022).

Financial Statements 2023

Airbus4131

4. Notes to the IFRS Company Financial Statements
4.5 Capital Structure and Financial Instruments

15.3

Securities
31 December(In € million)

2023

2022

Current securities (at fair value through OCI)

1,162

1,692

Non‑current securities (at fair value through OCI)

6,986

5,662

Total securities

8,148

7,354

The majority of the Company’s securities consists of debt
securities and are classified at fair value through OCI (see “–Note 37.2: Carrying Amounts and Fair Values of Financial
Instruments” of the Consolidated Financial Statements).

and 2022, respectively, are corporate and government bonds
bearing either fixed rate coupons (€8,496 million nominal value;2022: €7,953 million) or floating rate coupons (€0 million
nominal value; 2022: €0 million).

The Company’s securities portfolio amounts to €8,148 millionand €7,354 million as of 31 December 2023 and 2022,
respectively. The security portfolio contains a non‑current
portion of €6,986 million (2022: €5,662 million), and a current
portion of €1,162 million (2022: €1,692 million).

When the Company enters into securities lending or otherfinancing activities that involve the pledging of securities as
collateral, the securities pledged continue to be recognised on
the balance sheet. As of 31 December 2023 and 2022, there
were no securities pledged as collateral for borrowings frombanks.

Included in the securities portfolio as of 31 December 2023

132 Airbus

Financial Statements 2023

4. Notes to the IFRS Company Financial Statements
4.5 Capital Structure and Financial Instruments

15.4

Financing Liabilities

Current and non‑current classification — A financial asset or liability is classified as current if it is settled within 12 months after
the reporting date, and as non‑current otherwise.
Financing liabilities comprise obligations towards financial institutions, issued corporate bonds, and borrowing received fromassociates and other parties.
Carrying amount(In € million)

Principal
amount31 December(In million)

2023

2022

Couponorinterest
rate

EMTN 15 years

€500

469

444

EMTN 10 years

€823

817

EMTN 10 years€461

EMTN 15 years

Effective
interest
rate

Maturity

Additional features

2.12%

2.21% Oct. 2029

Interest rate swapped
into 3M Euribor +0.84%

799

2.38%

2.42%

Apr. 2024

Interest rate swapped
into 3M Euribor +1.40%

436

419

0.88%

0.98% May 2026

Interest rate swapped
into 3M Euribor +0.50%

€900

793

737

1.38%

1.50% May 2031

Interest rate swapped
into 3M Euribor +0.66%

EMTN 5 years

€561

535

515

1.63%

1,80%

Apr. 2025

Interest rate swapped
into 3M Euribor +2.01%

EMTN 8 years

€611

546

512

2.00%

2.10%

Apr. 2028

Interest rate swapped
into 3M Euribor +2.15%

EMTN 12 years€1,000

822

754

2,38%

2.49%

Apr. 2032

Interest rate swapped
into 3M Euribor +2.24%

EMTN 6 years

€894

832

792

1,38%

1,47% Jun. 2026

Interest rate swapped
into 3M Euribor +1.66%

EMTN 10 years€1,250

1,068

989

1.63%

1,74% Jun. 2030

Interest rate swapped
into 3M Euribor +1.61%

EMTN 20 years€1,000

706

646

2.38%

2,44% Jun. 2040

Interest rate swapped
into 3M Euribor +1.93%

US$ Bond 10 years

US$750

641

653

3.15%

3.20%

Apr 2027

Interest rate swapped into
1D SOFR

US$ Bond 30 years

US$750

651

643

3.95%

4.02%

Apr 2047

Interest rate swapped into
1D SOFR +0.31%

03M
Euribor+0.498%3M
Euribor+0.498% Dec. 2038

3M
Euribor+0.59%

3M
Euribor+0.59%

Bonds

Loans to financial institutions

European Investment Bank

KfW Bank

Total
Thereof non‑current financing liabilities
Thereof current financing liabilities

€165

€50

165

48

0

8,528

7,903

7,711

7,903

817

0

4

Jul. 2029

Long‑term financing liabilities, mainly comprising bonds and liabilities to financial institutions, decreased by €-192 million to€7,711 million (2022: €7,903 million), mainly due to a transfer in short term of a EMTN maturing in 2024, new loans from financial
institutions (€213 million), and the increase in values of bonds linked to higher interest rates (see “– Note 16: Information about
Financial Instruments” of the Company Financial Statements).

Financial Statements 2023

Airbus133

4. Notes to the IFRS Company Financial Statements
4.5 Capital Structure and Financial Instruments

Short‑term financing liabilities increased by €817 million to €817 million (2022: €0 million), mainly due to the EMTN 10 Years
maturing in 2024.
The Company can issue commercial papers under its €11 billion Negotiable European Commercial Paper (“NEuCP”) programme,its €4 billion Euro Commercial Paper (“ECP”) programme and its US$3 billion US Commercial Paper programme.
As of 31 December 2023, there were no outstanding amounts under any of its Commercial Paper Programme.
Non‑cash movements
Balance at
1 January2023(In € million)

Fair value
through
Cash flows profit or loss

Foreignexchange
movements

OthersBalance at
31 December
2023

Bonds and commercial papers

7,903

0

449

(49)

12

8,315

Liabilities to financial institutions

0

213

0

0

0

213

Loans from Subsidiaries

0

0

0

0

0

0

7,903

213

449

(49)

12

8,528

Foreignexchange
movements

OthersBalance at
31 December
2022

Total

Non‑cash movements
Balance at
1 January2022(In € million)

Fair value
through
Cash flows profit or loss

Bonds and commercial papers

10,328(978)(1,517)

80

(10)

7,903

Liabilities to financial institutions

0

0

0

0

0

0

591

(591)

0

0

0

0

10,919(1,569)(1,517)

80

(10)

7,903

Loans from Subsidiaries

Total

16.

Information about Financial Instruments

16.1

Financial Risk Management

The Company acts as an intermediary for its subsidiaries when
they wish to enter into derivative contracts to hedge against
foreign exchange risk or other market risks such as interest raterisk, commodity price risk or equity price risk. The Company’s
practice is to set up a derivative contract with a subsidiary andat the same time enter into a back‑to‑back derivativetransaction with a bank. Contracts with subsidiaries being thus
mirrored (on a one‑to‑one basis) by contracts with banks, theCompany’s net exposure is virtually zero. There are, however, a
few derivative contracts the Company holds in order to hedge
its own market risk exposure.
As the Company’s back‑to‑back hedge contracts are enteredinto with different counterparties, their fair values are reflected
separately in the statement of Financial Position andrecognised as other financial assets and financial liabilities as
disclosed in “– Note 11: Financial assets and liabilities” of theCompany Financial Statements.

134 Airbus

Financial Statements 2023

In the Income Statement, the results of the back‑to‑back hedgetransactions, both realised and unrealised, are presented on a
net basis as the Company acts as an agent for its subsidiaries.
The Company’s overall financial risk management activities andtheir objectives are described in detail in “– Note 37.1: Financial
Risk Management” of the Consolidated Financial Statements.

Market Risk
Foreign exchange risk — The Company manages a long‒term hedge portfolio with maturities of several years for its
subsidiaries, mainly Airbus, and to a small extent for its joint
ventures or associates. This hedge portfolio covers a large
portion of Airbus’ firm commitments and highly probable
forecast transactions. As explained above, owing to theCompany’s back‑to‑back approach, its own exposure toforeign exchange risk is very limited.

4. Notes to the IFRS Company Financial Statements
4.5 Capital Structure and Financial Instruments

Interest rate risk — The Company uses an asset‑liability
management approach with the objective to limit its interest
rate risk. It undertakes to match the risk profile of its
interest‑bearing assets with those of its interest‑bearing
liabilities. The remaining net interest rate exposure is managed
through several types of interest rate derivatives, such as
interest rate swaps and interest rate futures contracts, in orderto minimise risks and financial impacts.
The vast majority of related interest rate hedges qualify forhedge accounting, and most of them are accounted for under
the fair value hedge model. As a result, both the fair valuechanges of these derivatives and the portion of the hedged
items’ fair value change that is attributable to the hedged
interest rate risk are recognised in Profit and Loss, where they
offset to the extent the hedge is effective. The Company has
applied the relief introduced by the amendments made to
IFRS 9 in September 2019 on hedge accounting, having theeffect that the IBOR reform should not cause hedge accounting
to terminate.
The Company invests in financial instruments such as overnight
deposits, certificates of deposits, commercial papers, othermoney market instruments and short‑term as well as
medium‑term bonds. For its financial instruments portfolio, theCompany has an Asset Liability Management Committee inplace that meets regularly and aims to limit the interest rate risk
on a fair value basis through a value‑at‑risk approach, fromwhich results a hedge ratio that is however not actively steered.
Commodity price risk — The Company manages a hedge
portfolio for its subsidiaries. Owing to the Company’s
back‑to‑back approach, its own exposure to commodity
exchange risk is very limited.
Equity price risk — The Company is to a small extent invested
in equity securities mainly for operational reasons. Its exposure
to equity price risk is hence limited. Furthermore, it is exposed
under its LTIP to the risk of the Company share price increases.
Sensitivities of market risks — The approach used tomeasure and control market risk exposure within the
Company’s financial instrument portfolio is amongst other key
indicators the value‒at‒risk (“VaR”). For information about VaR
and the approach used by the Company to assess and monitor
sensitivities of market risks please refer to “– Note 37.1:
Financial Risk Management” of the Consolidated Financial
Statements.
The Company is part of the Group risk management process,which is more fully described in “– Note 37.1: Financial Risk
Management” of the Consolidated Financial Statements.

A summary of the VaR position of the Company’s financial instruments portfolio at 31 December 2023 and 31 December 2022 is
as follows:(In € million)

Total VaR

Equity price VaR

Currency VaRInterest rate VaR

Foreign exchange hedges

11

0

12

1

Financing liabilities, financial assets (including cash,
cash equivalents, securities and related hedges)

150

70

29

141

1

1

0

0

Diversification effect

(15)

(1)

(25)

(1)

All financial instruments

147

70

16

141

Foreign exchange hedges

20

0

19

1

Financing liabilities, financial assets (including cash,
cash equivalents, securities and related hedges)

194

66

18

175

2

2

0

0

Diversification effect

(29)

0

(34)

(2)

All financial instruments

187

68

3

174

31 December 2023

Equity swaps

31 December 2022

Equity swaps

4

The decrease in the total VaR of €40 million (2022: €119 million) is mainly attributable to the interest rate volatility stabilisation afteran exceptional year 2022. The derivative instruments entered into with external counterparties are passed on a 1:1 basis to Airbus
entities. As a result, the respective market risks of the external derivative instruments are offset by corresponding opposite market
risks of intragroup transactions.

Financial Statements 2023

Airbus135

4. Notes to the IFRS Company Financial Statements
4.5 Capital Structure and Financial Instruments

Liquidity Risk
The Company’s policy is to maintain sufficient cash and cash
equivalents at any time to meet its present and futurecommitments as they fall due. It manages its liquidity byholding adequate volumes of liquid assets and maintains acommitted revolving credit facility, in addition to the cash inflow
generated by its operating business. The Company continues
to keep within its asset portfolio the focus on low counterparty
risk. In addition, it maintains a set of other funding sources, andaccordingly may raise loans from commercial banks andDevelopment Finance Institutions and issue bonds, notes andcommercial papers or enter into security lending agreements.
Adverse changes in the capital markets could increase its
funding costs and limit its financial flexibility. For further
information relating to Commercial Paper Programme (see “–Note 15.4: Financing Liabilities” of the Company Financial
Statements).
In particular, Airbus signed on 5 July 2022 a €8 billion
Sustainability Linked Revolving Syndicated Credit Facility inorder to refinance its €6 billion existing facility signed in 2020.
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 theCompany’s liquidity reserve as well as the expected cash flows
from its operations.

The contractual maturities of the Company financial liabilities, based on undiscounted cash flows and including interest payments,
if applicable, are as follows:
Carrying Contractual
amount cash flows< 1 year

1 year‑2 years

2 years‑3 years

3 years‑4 years

Non‑derivative financial liabilities (1)(37,475)(40,094)(29,957)(738)(1,522)

(830)

(741)

(6,306)

Derivative financial liabilities(5,292)(6,388)(2,200)(1,294)(926)(1,051)

(56)

(861)

Total

(42,767)(46,482)(32,157)(2,032)(2,448)(1,881)(797)(7,167)

Non‑derivative financial liabilities (1)(43,258)(46,785)(35,553)(1,021)(740)(1,524)(856)(7,091)

Derivative financial liabilities(9,255)(11,631)(3,867)(2,866)(1,690)(1,090)(706)(1,412)(52,513)(58,416)(39,420)(3,887)(2,430)(2,614)(1,562)(8,503)(In € million)

4 years More than
‑5 years
5 years

31 December 2023

31 December 2022

Total

(1) Current accounts Group companies are included in “Non‑derivative financial liabilities” and have a maturity less than one year.

Credit Risk
The Company is exposed to credit risk to the extent of
non‑performance by its counterparts with regard to financial
instruments or issuers of financial instruments for gross cash
investments. However, it has policies in place to avoid
concentrations of credit risk and to ensure that credit risk islimited.
As far as central treasury activities are concerned, credit risk
resulting from financial instruments is managed by theCompany. In order to ensure sufficient diversification, a credit
limit system is used.
The Company monitors the performance of the individual
financial instruments and the impact of market developmentson their performance and takes appropriate action onforeseeable adverse development based on pre‑definedprocedures and escalation levels.
Sales of products and services are made to customers after
having conducted appropriate internal credit risk assessment.

136 Airbus

Financial Statements 2023

The booked amount of financial assets represents the
maximum credit exposure. The credit quality of financial assets
can be assessed by reference to external credit rating (ifavailable)orinternal
assessmentofcustomers’
creditworthiness by way of internal risk pricing methods.
In 2023, the trade receivables, neither past due nor impaired
amount to €12 million (in 2022: €28 million).
The Company measures loss allowances at an amount that
represents credit losses resulting from default events that are
possible within the next 12 months, unless the credit risk on afinancial instrument has increased significantly since initialrecognition, as described in “– Note 37.7: Impairment losses”
of the Consolidated Financial Statements. In 2023, an amountof €2 million of impairment gain on financial assets is
recognised in Profit and Loss (2022: €5 million).

4. Notes to the IFRS Company Financial Statements
4.5 Capital Structure and Financial Instruments

16.2

Carrying Amounts and Fair Values of Financial Instruments

Financial instruments — The Company’s financial assets
mainly consist of cash, short to medium‑term deposits,
securities and derivatives. The Company’s financial liabilities
include intragroup liabilities, obligations towards financial
institutions, issued bonds and derivatives. The Company has
the same classification and accounting policies as in theConsolidated Financial Statements. Please refer to “–Note 37.1: Financial Risk Management” of the Consolidated
Financial Statements for more information.

The Company classifies its financial assets in one of thefollowing categories: (i) at fair value through OCI, (ii) at fair value
through profit and loss and (iii) at amortised cost. Classification
depends on the Company’s business model for managing thefinancial assets and the contractual terms of the cash flows.
The Company assigns its financial instruments (excluding its
at‑cost investments, which are outside the scope of IFRS 9“Financial Instruments”) into classes based on their category in
the Statement of Financial Position.

The following table presents the carrying amounts and fair values of financial instruments by class and by IFRS 9 measurement
category as of 31 December 2023:(In € million)

Fair value
through
Fair value
profit or loss through OCI

Financial assets andliabilities at amortised cost Financial instrument Total
Amortised
cost

Fair value Book value

Fair value

AssetsOther investments and long‒term financial assets
Equity investments

1,609

0

0

0

1,609

1,609

Loans

0

0

4,570

4,816

4,570

4,816

Trade receivables

0

0

12

12

12

12

4,310

0

0

0

4,310

4,310

Current account Group companies

0

0

4,663

4,663

4,663

4,663

Securities

0

8,148

0

0

8,148

8,148

Cash and cash equivalents

12,410

1,010

1,198

1,198

14,618

14,618

Total

18,329

9,158

10,443

10,68937,93038,176

Bonds and commercial papers

0

0

8,315

8,767

8,315

8,767

Liabilities to financial institutions

0

0

213

220

213

220

5,292

0

0

0

5,292

5,292

Current accounts Group companies

0028,93828,93828,93828,938Trade liabilities

0

0

11

11

11

11

5,292

0

37,47737,93642,76943,228Other financial assets
Derivative instruments

Liabilities
Financing liabilities

Other financial liabilities
Derivative instruments

Total

Financial Statements 2023

Airbus4137

4. Notes to the IFRS Company Financial Statements
4.5 Capital Structure and Financial Instruments

The following table presents the carrying amounts and fair values of financial instruments by class and by IFRS 9 measurement
category as of 31 December 2022:

Fair value
through
profit or loss

Fair value
through
OCI

1,446

Loans
Trade receivables

Financial assets andliabilities at amortised cost Financial instrument Total
Amortised
cost

Fair value

Book value

Fair value

0

0

0

1,446

1,446

0

0

2,075

2,194

2,075

2,194

0

0

28

28

28

28

7,829

0

0

0

7,829

7,829

Current account Group companies

0

0

9,670

9,670

9,670

9,670

Securities

0

7,354

0

0

7,354

7,354

Cash and cash equivalents

11,135

1,001

1,146

1,146

13,282

13,282

Total

20,4108,355

12,91913,03841,68441,803

Bonds and commercial papers

0

0

7,903

8,356

7,903

8,356

Internal loans payable

0

0

0

0

0

0

9,255

0

0

0

9,255

9,255

Current accounts Group companies

0035,35535,35535,35535,355Trade liabilities (1)

0

0

18

18

18

18

9,255

0

43,27643,72952,531

52,984(In € million)

AssetsOther investments and long‒term financial assets
Equity investments

Other financial assets
Derivative instruments

Liabilities
Financing liabilities

Other financial liabilities
Derivative instruments

Total(1) 2022 figures restated in accordance with 2023 presentation.

Fair Value Hierarchy
For further details please refer to “– Note 37.2: Carrying Amounts and Fair Values of Financial Instruments” of the Consolidated
Financial Statements.
The fair values disclosed for financial instruments accounted for at amortised cost reflect Level 2 input.

138 Airbus

Financial Statements 2023

4. Notes to the IFRS Company Financial Statements
4.5 Capital Structure and Financial Instruments

The following table presents the carrying amounts of the financial instruments held at fair value across the three levels of the fairvalue hierarchy as of 31 December 2023 and 2022, respectively:
2023

2022

Level 1

Level 2

Total

Level 1

Level 2

Total

1,609

0

1,609

1,446

0

1,446

0

4,310

4,310

0

7,829

7,829

Securities

8,148

0

8,148

7,354

0

7,354

Cash equivalents

12,4101,010

13,420

11,135

1,001

12,136

Total

22,167

5,320

27,487

19,9358,830

28,765

Financial liabilities measured at fair value

0

0

0

0

0

0

Derivative instruments

0

5,292

5,292

0

9,255

9,255

Total

0

5,292

5,292

0

9,255

9,255

(In € million)

Financial assets measured at fair value
Equity instruments
Derivative instruments

Financial Assets Designated at Fair Value through Profit or Loss
The following types of financial assets held at 31 December 2023 and 2022, respectively, are designated at fair value through profit
or loss:
Nominal amount at initial recognition at
31 December 2023

31 December 2022

Money market funds (accumulating)

12,410

11,135

Total

12,410

11,135(In € million)

Designated at fair value through profit or loss at recognition:

The Company manages these assets and measures their performance on a fair value basis.

16.3

Potential Effect of Set‑Off Rights on Recognised Financial Assets
and Liabilities

The Company reports all its financial assets and financial liabilities on a gross basis. With each derivative counterparty there are
master netting agreements in place providing for the immediate close‑out of all outstanding derivative transactions and payment of
the net termination amount in the event a party to the agreement defaults or another defined termination event occurs. The
following tables set out, on a counterparty specific basis, the potential effect of master netting agreements on the Company’s
financial position, separately for financial assets and financial liabilities that were subject to such agreements as of 31 December
2023 and 31 December 2022, respectively:

4

Financial Statements 2023

Airbus139

4. Notes to the IFRS Company Financial Statements
4.5 Capital Structure and Financial Instruments

Derivative instruments(In € million)

Gross amounts
recognised

Related amounts not set off in
the Statement of Financial
Position

Gross amounts
Net amounts
recognised set
off in the presented in the
Financial
Financial
Statements
Statements

Financial
instruments

Cash collateral
received

Net amount

31 December 2023
Financial assets

4,310

0

4,310

(1,676)0

2,634

Financial liabilities

5,292

0

5,292

(1,676)0

3,616

Financial assets

7,829

0

7,829

(1,410)0

6,419

Financial liabilities

9,255

0

9,255

(1,410)07,845

31 December 2022

16.4

Notional Amounts of Derivative Financial Instruments

The notional amount of interest rate contracts are as follows, specified by year of expected maturity:
Remaining period(In € million)

1 year

2 years

3 years

4 years

5 years

6 years

7 years> 7 years

Total

31 December 2023

911

654

1,365

1,426

621

524

1,250

3,629

10,38031 December 2022

42

922

703

1,367

1,475

654

517

4,200

9,880

The notional amounts of equity swaps are as follows:
Remaining period(In € million)

1 year

2 years

3 years

4 years> 4 years

Total

31 December 2023

41

34

0

0

0

75

31 December 2022

17

22

14

0

0

53

16.5

Derivative Financial Instruments and Hedge Accounting Disclosure

The following table presents the amounts relating to items designated as hedging instruments:
31 December
2023

2022

Carrying values

Carrying values

Asset

Liability

Asset

Liability

0

0

0

0

(21)

982

0

1,394

Commodity swap risk

0

0

0

0

Equity swap risk

0

0

0

0

(21)

982

0

1,394

(In € million)

Foreign currency risk
Interest rate risk

Total

140 Airbus

Financial Statements 2023

4. Notes to the IFRS Company Financial Statements
4.5 Capital Structure and Financial Instruments

16.6

Net Gains or Net Losses

The Company’s net gains or net losses recognised in profit or loss in 2023 and 2022, respectively are as follows:
31 December
2023

2022

30

(46)

Designated on initial recognition

(193)

142

Financial assets at amortised cost (1)

(49)

(90)

Financial assets at fair value through OCI

(66)

55

Financial assets at fair value through profit or loss

163

464

Financial liabilities measured at amortised cost

286

(111)

Total

171

414

(In € million)

Financial assets or financial liabilities at fair value through profit or loss:
Held for trading(1) Including impairment and Expected Credit Losses on Financial assets at amortised cost.

16.7

Impairment Losses

Loss allowances — For its portfolio of debt instruments
including bonds, term deposits and commercial papers, theCompany measures loss allowances at an amount that
represents credit losses resulting from default events that are
possible within the next 12 months, unless the credit risk on afinancial instrument has increased significantly since initialrecognition. In the event of such significant increase in credit
risk the Company measures loss allowances for that financial
instrument at an amount equal to its life‑time expected losses,
i.e. at an amount equal to the expected credit losses that result
from all possible default events over the expected life of that
financial instrument.

credit risk since initial recognition of a financial instrument, if the
instrument is determined to have low credit risk at the reporting
date. Similarly, the Company has determined that its tradereceivables generally have low credit risk. The Company
applies the simplified approach permitted by IFRS 9 of
measuring expected credit losses of trade receivables on alifetime basis from initial recognition.
Investment grade instruments — The Company considers asignificant increase in credit risk to have occurred, if there is adowngrade by four notches such that the instrument moves
into a high yield bucket as a direct result of the downgrade.
With respect to instruments that were high yield at initialrecognition, a downgrade by four notches is considered as asignificant increase in credit risk.

The Company applies the low credit risk exemption allowing
the Company to assume that there is no significant increase inStage 1(In € million)

12‑month ECLStage 2

Stage 3

Life‑time ECL Credit impaired ECL

Total

At 1 January 2023

8

0

0

8

Change in financial assets and risk parameters

(1)

0

0

(1)

At 31 December 2023

7

0

0

7

Stage 1

Stage 2

Stage 3(In € million)

12‑month ECL

Life‑time ECL Credit impaired ECL

4

Total

At 1 January 2022

7

6

0

13

Change in financial assets and risk parameters

1

(6)

0

(5)

At 31 December 2022

8

0

0

8

There are no significant impairment on Financial Assets recognised in Profit and Loss in 2023 and 2022 respectively.

Financial Statements 2023

Airbus141

4. Notes to the IFRS Company Financial Statements
4.6 Other Notes

4.6 Other Notes
17.

Auditor Fees

Fees related to professional services rendered by the Company’s auditor, Ernst & Young Accountants LLP, for the fiscal year 2023
were €0.7 million (in 2022: €0.8 million) and the fees related to professional services rendered other EY member firms €2.3 million(in 2022: €1.9 million). These fees relate to audit services only.

18.

Events after the Reporting Date

Regarding the events after the reporting date, please refer to “– Note 40: Events after the Reporting Date” of the Consolidated
Financial Statements.

142 Airbus

Financial Statements 2023

4. Notes to the IFRS Company Financial Statements

4

Financial Statements 2023

Airbus143

Chapter

144 Airbus

Financial Statements 2023

5
Other Supplementary
Information

Financial Statements 2023

Airbus145

5. Other Supplementary Information

1.

Appropriation of Result

Articles 30 and 31 of the Articles of Association provide that theBoard of Directors shall determine which part of the result shallbe attributed to the reserves. The General Meeting of
Shareholders may dispose of a reserve only upon a proposal of
the Board of Directors and to the extent it is permitted by law
and the Articles of Association. Dividends may only be paid
after adoption of the annual accounts from which it appears
that the shareholders’ equity of the Company is more than theamount of the issued and paid‑in part of the capital increasedby the reserves that must be maintained by law.

146 Airbus

Financial Statements 2023

It will be proposed at the Annual General Meeting of
Shareholders that the gain for the period of €6,884 million asshown in the income statements for the financial year 2023 is
to be added to retained earnings. For the fiscal year 2023, theBoard of Directors will propose the payment of a dividend of€1.80 per share and a special dividend of €1.00 per share.

Airbus SE
Mendelweg 302333 CS Leiden
The Netherlands