Financial
Statements
2021

This contains an unaudited PDF format version of the annual ﬁnancial statements and is not the original annual
ﬁnancial reporting including the audited ﬁnancial statements pursuant to article 361 of Book 2 of the Dutch Civil
Code and as speciﬁed in the Regulatory Technical Standards on ESEF (Delegated Regulation (EU) 2019/815).
The ESEF-compliant Annual Financial Report of Airbus SE for the year ended 31 December 2021
has been ﬁled with the AFM in XHTML format and is available on the AFM’s website(https://www.afm.nl/en/professionals/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 “XHTML format”, the XHTML format prevails.

Financial
Statements2

Airbus / Financial Statements 2021

1
Airbus SE IFRS Consolidated Financial Statements

52
Notes to the IFRS Consolidated Financial Statements

13

3
Airbus SE IFRS Company Financial Statements

83

4
Notes to the IFRS Company Financial Statements

89

5
Other Supplementary Information

Airbus / Financial Statements 2021

113

3

Chapter

1
4

Airbus / Financial Statements 2021

1
Airbus SE
IFRS Consolidated
Financial Statements
Airbus SE – IFRS Consolidated Income Statement
for the years ended 31 December 2021 and 2020

6

Airbus SE – IFRS Consolidated Statement of Comprehensive
Income for the years ended 31 December 2021 and 20207

Airbus SE – IFRS Consolidated Statement of Financial
Position for the years ended 31 December 2021 and 20208

Airbus SE – IFRS Consolidated Statement of Cash Flowsfor the years ended 31 December 2021 and 202010

Airbus SE – IFRS Consolidated Statement of Changes
in Equity for the years ended 31 December 2021 and 202011

Airbus / Financial Statements 2021

5

1. Airbus SE – IFRS Consolidated Financial Statements /Airbus SE – IFRS Consolidated Income Statement
for the years ended 31 December 2021 and 2020
(In € million)

Note

Revenue

12

Cost of sales
Gross margin12

Selling expenses
Administrative expenses

2021

2020

52,14949,912(42,518)(44,250)

9,631

5,662

(713)

(717)

(1,339)(1,423)(2,746)(2,858)

Research and development expenses

13

Other income

14

594

132

Other expenses

14

(201)

(1,458)

Share of profit from investments accounted for under the equity method

15

40

39

Other income from investments

15

76

113

5,342

(510)

Profit (Loss) before financial result and income taxes
Interest income

88

140

Interest expense

(334)

(411)

(69)

(349)

(315)

(620)

Other financial result
Total financial result

16

Income taxes

17

Profit (Loss) for the period

(853)

(39)

4,174

(1,169)4,213(1,133)

(39)

(36)

Attributable toEquity owners of the parent (Net income)Non-controlling interests

Earnings per share

€

€

Basic

18

5.36

(1.45)

Diluted18

5.36(1.45)

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

6

Airbus / Financial Statements 2021

1. Airbus SE – IFRS Consolidated Financial Statements /Airbus SE – IFRS Consolidated Statement of Comprehensive Income
for the years ended 31 December 2021 and 2020
(In € million)

Note

Profit (Loss) for the period

2021

2020

4,174

(1,169)Other comprehensive income
Items that will not be reclassified to profit or loss:
Remeasurement of the defined benefit pension plans

31

2,613

(1,537)

Income tax relating to remeasurement of the defined benefit pension plans

17

(368)

359

(115)

(133)

1

14

134

(96)

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:

175

(204)

Change in fair value of cash flow hedges

37(5,131)

3,648

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

17

1,409

(916)

(103)

(61)

Foreign currency translation differences for foreign operations

Change in fair value of financial assets

25

9

33

51

Other comprehensive income, net of tax(1,327)

1,134

Total comprehensive income for the period

2,847

(35)

Equity owners of the parent

2,901

(25)

Non-controlling interests

(54)

(10)

Income tax relating to change in fair value of financial assets

17

Share of change from investments accounted for under the equity method

Attributable to:1

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

Airbus / Financial Statements 2021

7

1. Airbus SE – IFRS Consolidated Financial Statements /Airbus SE – IFRS Consolidated Statement of Financial Position
for the years ended 31 December 2021 and 2020
(In € million)

Note

2021

2020

AssetsNon-current assets
Intangible assets

19

16,367

16,199Property, plant and equipment

20

16,536

16,674

41

2

9

1,672

1,578

Other investments and other long-term financial assets

21

4,001

3,855

Non-current contract assets

22

27

48

Investment property
Investments accounted for under the equity method

Non-current other financial assets

25

691

3,483

Non-current other assets

26

795

483

Deferred tax assets

17

4,323

4,023

Non-current securities

36

6,794

5,350

51,247

51,695

Total non-current assets
Current assets
Inventories

23

28,53830,401

Trade receivables

22

5,063

5,132

Current portion of other long-term financial assets

21

537

468

Current contract assets

22

1,377

1,074

Current other financial assets

25

1,451

2,432

Current other assets

26

2,393

2,216

552

620

Current tax assets
Current securities

36

1,317

1,618

Cash and cash equivalents

36

14,572

14,43955,80058,4000

0107,047

110,095

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

Total assets

8

Airbus / Financial Statements 2021

1. Airbus SE – IFRS Consolidated Financial Statements /

2021

2020

787

785

Share premium

3,712

3,599

Retained earnings

6,834

250

Accumulated other comprehensive income(1,822)

1,853(In € million)

Note

Equity and liabilities
Equity attributable to equity owners of the parent
Capital stock

Treasury shares
Total equity attributable to equity owners of the parent

(45)

(42)

9,466

6,445

20

11

34

9,486

6,456

Non-current provisions

24

10,771

14,298 (1)Long-term financing liabilities

36

13,094

14,082

Non-controlling interests

Total equity
Liabilities
Non-current liabilities

Non-current contract liabilities

22

18,62019,212

Non-current other financial liabilities

25

6,562

5,657

Non-current other liabilities

26

583

436

Deferred tax liabilities

17

116

451

Non-current deferred income

832

Total non-current liabilities

49,754

54,168 (1)4,510

6,245 (1)1

Current liabilities
Current provisions

24

Short-term financing liabilities

36

1,946

3,013

Trade liabilities

22

9,693

8,722

Current contract liabilities

22

23,906

24,675Current other financial liabilities

25

2,532

1,769

Current other liabilities

26

3,532

3,160

1,057

1,311

Current deferred income

631

576

Total current liabilities

47,80749,471 (1)00Total liabilities

97,561

103,639

Total equity and liabilities

107,047

110,095

Current tax liabilities

Disposal group of liabilities classified as held for sale

(1) Previous year allocation between non-current and current provisions has been restated.

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

Airbus / Financial Statements 2021

9

1. Airbus SE – IFRS Consolidated Financial Statements /Airbus SE – IFRS Consolidated Statement of Cash Flowsfor the years ended 31 December 2021 and 2020
(In € million)

Note

Operating activities
Profit (Loss) for the period attributable to equity owners of the parent (Net income)Loss for the period attributable to non-controlling interests
Adjustments to reconcile profit for the period to cash provided by operating activities:
Interest income
Interest expense
Interest received
Interest paid
Income tax expense
Income tax paid
Depreciation and amortisation
11
Valuation adjustments
Results on disposals of non-current assets
Results of investments accounted for under the equity method
Change in current and non-current provisions
Contribution to plan assets (1)Change in other operating assets and liabilities
Inventories
Trade receivables
Contract assets and liabilities
Trade liabilities
22
Other assets and liabilities
25, 26
Cash provided by (used for) operating activities
Investing activities
Purchases of intangible assets, property, plant and equipment, investment property
Proceeds from disposals of intangible assets, property, plant and equipment and investment property
Acquisitions of subsidiaries, joint ventures, businesses and non-controlling interests (net of cash)
Payments for investments accounted for under the equity method, other investments and otherlong-term financial assets
Proceeds from disposals of investments accounted for under the equity method, other investments
and other long-term financial assets
Dividends paid by companies valued at equity
9
Disposals of non-current assets and disposal groups classified as assets held for sale and liabilities
directly associatedPayments for investments in securities
36
Proceeds from disposals of securities
36
Cash provided by (used for) investing activities
Financing activities
Increase in financing liabilities
36
Repayment of financing liabilities
36
Cash distribution to Airbus SE shareholders
34
Payments for liability for puttable instruments
Changes in capital and non-controlling interests
34
Change in treasury shares
Cash provided by (used for) financing activities
Effect of foreign exchange rate changes on cash and cash equivalents

Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period(1) In 2020, thereof € 331 million contributions for retirement and deferred compensation plans.

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

10

Airbus / Financial Statements 2021

36

2021

2020

4,213
(39)

(1,133)
(36)

(88)
334
111
(330)
853
(321)
2,325
(863)
(116)
(40)
(1,934)
(533)
1,067
2,405
379
(2,326)
194
415
4,639

(140)
411
82
(205)
39
79
2,831
95
9
(39)
1,138
(314)
(8,237)152351
848(5,523)(4,065)(5,420)(1,928)212(25)(1,759)
228
(481)

(577)

(565)

396
79

408
(8)

310
(3,049)1,863(2,719)

0
(337)
6,640
4,126

0
(2,295)
0
0
138
(22)
(2,179)
392

7,102
(445)
0
91
89
(4)
6,833
(414)

133

5,125

14,4399,314

14,572

14,439

1. Airbus SE – IFRS Consolidated Financial Statements /Airbus SE – IFRS Consolidated Statement of Changes in Equity
for the years ended 31 December 2021 and 2020
Equity attributable to equity holders of the parent
Accumulated othercomprehensive income(In € million)

Foreign
Financial
Cashcurrency
Capital Share Retained assets atflow translation Treasury
Note stock premium earnings fair value hedges adjustments shares

Noncontrolling
Total interests

Total
equityBalance at
1 January 2020

784

3,555

2,241

1,179

(82)

5,975

15

5,990

Loss for the period00(1,133)

0

0

0

0

(1,133)(36)(1,169)Other comprehensive
income00(1,268)

(171)

2,783

(236)

0

1,108

26

1,134

Total comprehensive
income for the period

819 (2,521)

00(2,401)

(171)

2,783

(236)

0

(25)

(10)

(35)

Capital increase

34

1

44

0

0

0

0

0

45

0

45

Share-based payment(IFRS 2)

32

0

0

42

0

0

0

0

42

0

42

Cash distribution to
Airbus SE shareholders /Dividends paid to noncontrolling interests

34

0

0

0

0

0

0

0

0

0

0

0

0

368

0

0

0

0

368

6

374

0

0

0

0

40

40

0

40

Equity transaction(IAS 27)
Change in treasury
shares00Balance at
31 December 2020

34

785

3,599

250

648

262

943

(42)

6,445

11

6,456

Profit for the period

0

0

4,213

0

0

0

0

4,213

(39)

4,174

Other comprehensive
income

0

0

2,363

(192)

(3,710)227

0(1,312)(15)(1,327)

Total comprehensive
income for the period

0

0

6,576

(192)

(3,710)

227

0

2,901

(54)

2,847

Capital increase

34

2

113

0

0

0

0

0

115

0

115

Share-based payment(IFRS 2)

32

0

0

61

0

0

0

0

61

0

61

Cash distribution to
Airbus SE shareholders /Dividends paid to
non-controlling interests

34

0

0

0

0

0

0

0

0

0

0

0

0

(53)

0

0

0

0

(53)

63

10

0

0

0

0

0

0

(3)

(3)

0

(3)

787

3,712

6,834

456 (3,448)

1,170

(45)

9,466

20

9,486

Equity transaction(IAS 27)
Change in treasury
sharesBalance at
31 December 2021

34

1

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

Airbus / Financial Statements 2021

11

Chapter

2
12

Airbus / Financial Statements 2021

2
Notes to the
IFRS Consolidated
Financial Statements
2.1

Basis of Preparation

15

2.2

Airbus Structure

20

2.3

Segment Information

25

2.4

Airbus Performance

27

2.5

Operational Assets and Liabilities

33

2.6

Employees Costs and Benefits

46

2.7

Capital Structure and Financial Instruments

58

2.8

Other Notes

77

2.9

Appendix “Simplified Airbus Structure”

80

Airbus / Financial Statements 2021

13

2. Notes to the IFRS Consolidated Financial Statements /Contents

2.1

Basis of Preparation

15

1.
2.
3.
4.
5.
6.

The Company
Impact of the COVID-19 Pandemic
Signiﬁcant Accounting Policies
Key Estimates and Judgements
Change in Accounting Policies and Disclosures
Climate impacts

15
15
16
17
18
20

2.2

Airbus Structure

20

7.
8.
9.

14

21.

26.
27.

Other Investments and Other Long-Term
Financial Assets
Contract Assets and Contract Liabilities,
Trade Receivables and Trade Liabilities
Inventories
Provisions, Contingent Assets and Contingent
Liabilities
Other Financial Assets and Other Financial
Liabilities
Other Assets and Other Liabilities
Sales Financing Transactions

2.6

Employees Costs and Beneﬁ ts

46

28.
29.
30.
31.
32.
33.

Number of Employees
Personnel Expenses
Personnel-Related Provisions
Post-Employment Beneﬁts
Share-based Payment
Remuneration

46
46
46
46
52
54

22.
23.
24.
25.

38
38
39
40
41
43
43

20
21

10.

Scope of Consolidation
Acquisitions and Disposals
Investments Accounted for under
the Equity Method
Related Party Transactions

2.3

Segment Information

25

11.

Segment Information

25

2.4

Airbus Performance

27

12.
13.
14.
15.

27
28
28

2.7

Capital Structure and Financial Instruments

58

28
29
29
33

34.
35.
36.
37.

Total Equity
Capital Management
Net CashFinancial Instruments

58
59
59
63

16.
17.
18.

Revenue and Gross Margin
Research and Development Expenses
Other Income and Other Expenses
Share of Proﬁt from Investments Accounted
for under the Equity Method and Other Income
from Investments
Total Financial Result
Income Taxes
Earnings per Share

2.8

Other Notes

77

2.5

Operational Assets and Liabilities

33

38.
39.
40.

Litigation and Claims
Auditor Fees
Events after the Reporting Date

77
79
79

19.
20.

Intangible Assets
Property, Plant and Equipment

33
36

2.9

Appendix “Simpliﬁ ed Airbus Structure”

80

Airbus / Financial Statements 2021

2224

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 ﬁ nancial p osition and the results of operationsof Airbus SE together with its subsidiaries referred to as“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, and registered with
the Dutch Commercial Register (Handelsregister) under2.

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 theEuropean stock exchanges in Paris, Frankfurt am Main, Madrid,
Barcelona, Valencia and Bilbao. The IFRS Consolidated Financial
Statements were authorised for issue by the Company’s Boardof Directors on 16 February 2022.

Impact of the COVID-19 Pandemic

In 2020, the COVID-19 pandemic resulted in significant
disruption to the Company’s business operations and supply
chain. For more details on the impact in 2020, please refer tothe Company’s IFRS Consolidated Financial Statements as of
31 December 2020.

is conﬁ rmed to rise to around six in early 2022. The A350
production rate is expected to increase to six by Autumn 2022
while A330 production is expected to remain at an averagemonthly production rate of two per month.

The Company’s business, results of operations and ﬁ nancial
condition have been and may continue to be materially affectedby the COVID-19 pandemic, and the Company continues
to face risks and uncertainties. In addition to its impact on
the ﬁ nancial viability of operators, airlines and lessors andthe reduction of commercial air trafﬁ c, new variants of the
COVID-19 pandemic, lockdowns, travel limitations andrestrictions around the world have posed logistical challenges
and may cause disruptions to the Company’s business, its
operations and supply chain as well as customers’ ability totake delivery of aircraft.

On 28 October 2021, the Company announced the A220
production rate, which was at ﬁve aircraft a month, is expected
to increase to around rate six per month in early 2022, witha monthly production rate of 14 envisaged by the middle ofthe decade. On the A320 Family programme, the Company isworking to secure the ramp up and is on trajectory to achievea monthly rate of 65 aircraft by summer 2023. The recent
commercial successes of the A330 programme enable amonthly rate increase from around two to almost three aircraftat the end of 2022. The A350 programme is expected toincrease from around ﬁ ve to around six aircraft a month inearly 2023.

Airlines have reduced capacity, grounded portions of their
ﬂ eets and sought to implement measures to reduce cash
spending and secure liquidity. Some airlines have also sought
arrangements with creditors, restructured or applied forbankruptcy or insolvency protection, which may have further
consequences for the Company and its order book as well asother consequences resulting from the related proceedings.

Year-to-date ﬁnancials reﬂect deliveries as well as efforts on
cost containment and competitiveness. Furthermore, theCompany has performed a comprehensive review of provisions
and depreciations, taking into account the amended production
rates and expected future deliveries. Consequently, theCompany recorded € 0.6 billion of release of COVID-related
provisions including restructuring in 2021.

In 2021, the commercial environment has shown signs ofimprovements, in particular an increase in air travel demand.

In 2020, the review performed led to charges being recorded
for an amount of € 1.3 billion and a restructuring provision for
an amount of € 1.2 billion.

On 27 May 2021, the Company provided suppliers with an
update of its production plans based on its expectation that thecommercial aircraft market may recover to pre-COVID levels
between 2023 and 2025, led by the single-aisle segment. In
anticipation of a continued recovering market, the Company
conﬁrmed an average A320 Family production rate of 45 aircraft
per month in the fourth quarter of 2021 and called on suppliers
to prepare for the future by securing a ﬁrm rate of 64 by thesecond quarter of 2023. The A220 monthly production rate

2

The Company is monitoring the evolution of the COVID-19
pandemic and will continue to assess further impacts going
forward.
Management considers the Company has sufﬁcient resources
to continue operating for at least 12 months and that there
are no material uncertainties about the Company’s ability tocontinue as a going concern.

Airbus / Financial Statements 2021

15

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

3.

Signiﬁcant 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 preparedon a 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 in eachof the individual notes to the Financial Statements and avoids
repeating the text of the standard, unless this is considered
relevant to the understanding of the note’s content. The
Company’s accounting policies and methods are unchanged
compared to 31 December 2020. The implementation of otheramended standards has no material impact on the Company’s
Consolidated Financial Statements as of 31 December 2021.
The most signiﬁcant 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. Variableconsiderations are included in the transaction price when 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 and allocates thetransaction price to these performance obligations. Advancesand 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 toprotect the Company from the customer failing to complete its
contractual obligations.
Incurred inefficiency cost such as the unexpected cost of
materials, labour hours expended or other resources consumed
do not generate revenue as they do not contribute to theCompany’s progress in satisfying the performance 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).

16

Airbus / Financial Statements 2021

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, someborder security contracts, A400M development); or– the customer simultaneously receives and consumes
the beneﬁts 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 isrecognised at a point in time. For instance, revenue is recognised
at the delivery of aircraft under IFRS 15 from the sale of militarytransport 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, the related
assets under construction are measured at their net realisablevalue 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 4: Key Estimatesand Judgements”, “– Note 12: Revenue and Gross Margin”
and “– Note 24: Provisions, Contingent Assets and Contingent
Liabilities”).
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 clearlydeﬁned (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 the costs
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.
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 overthe estimated number of units produced. If the number of units
produced cannot be estimated reliably, they are amortised over

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

the estimated useful life of the internally generated intangible
asset. Amortisation of capitalised development costs is
recognised in cost of sales.
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 that are
directly attributable to the manufacturing process, such as directmaterial and labour, and production related overheads (based on
normal operating capacity and normal consumption of material,
labour and other production costs), including depreciation
charges. Net realisable value is the estimated selling price inthe ordinary course of the business less the estimated costs tocomplete the sale.
Transactions in foreign currency, i.e. transactions in currencies
other than the functional currency of an entity of the Company,
are translated into the functional currency at the foreign exchange
rate prevailing at the transaction date. Monetary assets andliabilities denominated in foreign currencies at the end of thereporting period are remeasured into the functional currency atthe exchange rate in effect at that date. Except when deferred inequity as qualifying cash ﬂow hedges (see “– Note 37: Financial
Instruments”), these foreign exchange remeasurement gains andlosses are recognised, in line with the underlying item:– in proﬁt before ﬁnance costs and income taxes if the substanceof the transaction is commercial (including sales ﬁnancing
transactions); and– in ﬁnance costs 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-monetaryﬁnancial assets and liabilities that are measured at fair value are4.

reported as part of the fair value gain or loss. However, translationdifferences of non-monetary ﬁnancial assets measured at fairvalue and classiﬁed as fair value through other comprehensive
income (“OCI”) are included in accumulated other comprehensive
income (“AOCI”).
Hedge accounting — Most of the Company’s revenue isdenominated in US dollar (“US$”), while a major portion of its
costs are incurred in euro. The Company is signiﬁcantly exposedto the risk of currency changes, mainly resulting from US$/€exchange rates. Furthermore, the Company is exposed, though
to a much lesser extent, to foreign exchange risk arising fromcosts incurred in currencies other than the euro and to othermarket risks such as interest rate risk, commodity price andequity 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 that derivative
gains or losses are recognised in proﬁt or loss (mainly in revenue)
in the same period that the hedged items or transactions affectproﬁt 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”.

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 the circumstancesprevailing at that time. The estimates and assumptions are basedon available information and conditions at the end of the ﬁnancial
period presented and are reviewed on an ongoing basis. Key
estimates and judgements that have a signiﬁcant inﬂuence on theamounts recognised in the Company’s Consolidated Financial
Statements are mentioned below:
Impairment of long-life assets, work in progress and ﬁnishedaircraft — In testing long-life assets such as jigs and tools andcapitalised development costs for impairment, the Company
makes estimates on the number and timing of aircraft units to
be delivered in the future, the margin of these aircraft, and thediscount rate associated with the aircraft programme. For aircraftthat may need to be remarketed, the impairment of working
progress and ﬁnished aircraft is assessed based on an estimationof the future selling price and associated remarketing costs.
Revenue recognition for per formance obligationstransferred over time — The PoC method is used to recogniserevenue for performance obligations transferred over time.
This method places considerable importance on accurate
estimates at completion as well as on the extent of progress

2

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 management of the segments continually review all estimates
involved in such performance obligations and adjusts themas necessary (see “– Note 22: Contract Assets and Contract
Liabilities, Trade Receivables and Trade Liabilities”).
Provisions — The evaluation of provisions, such as onerous
contracts, programme-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 natureof the Company’s contracts and related programmes, the extent
of assumptions, judgements and estimates in these monitoringprocesses differs. In particular, the introduction of commercial
or military aircraft programmes (e.g. A400M) or major derivative
aircraft programmes involves an increased level of estimatesand judgements associated with the expected development,
production and certification schedules and expected cost
components (see “– Note 24: Provisions, Contingent Assets
and Contingent Liabilities”).

Airbus / Financial Statements 2021

17

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

In view of overall commercial relationships, contract adjustments
may occur, and must be considered on a case 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 processesof the Company’s industry require challenging integration andcoordination along the supply chain including an ongoingassessment of suppliers’ assertions which may additionallyimpact 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 anticipatedcosts and includes only the direct expenditures arising from therestructuring, which are those amounts that are both necessarily
entailed by the restructuring and not associated with the ongoing
activities of the Company.
Hedge accounting — The hedge portfolio covers a large portionof the Company’s highly probable forecasted transactions derived
from its commercial activities. The Company makes estimatesand judgement in assessing the highly probable criteria of theforecasted transactions, in order to anticipate future events, asrisk of future cancellations of orders (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 beneﬁ t
obligations and the related future expenses (see “– Note 31:
Post-Employment Beneﬁts”).
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

5.

of legal expenses to resolve the matters. Internal and externallawyers are used for these assessments. In making the decision
regarding the need for provisions, management considers thedegree of probability of an unfavourable outcome and the ability
to make a sufﬁciently reliable estimate of the amount of loss. The
ﬁling of a suit or formal assertion of a claim against the Airbus
companies or the disclosure of any such suit or 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 arenecessary in determining the worldwide income tax liabilities.
Although management believes that it has made reasonableestimates about the ﬁ nal outcome of tax uncertainties, noassurance can be given that the ﬁnal tax outcome of thesematters will be consistent with what is reﬂected in the historicalincome tax provisions. At each end of the reporting period, theCompany assesses whether the realisation of future tax beneﬁts
is probable to recognise deferred tax assets. This assessment
requires the exercise of judgement on the part of managementwith 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 forthe recoverability test of deferred tax assets is the same as theCompany’s latest operative planning also taking into accountcertain qualitative aspects regarding the nature of the temporary
differences. Qualitative factors include but are not limited toan entity’s history of planning accuracy, performance records,
business model, backlog, existence of long-term contracts aswell as the nature of temporary differences (see “– Note 17:
Income Taxes”).
Other subjects that involve assumptions and estimates are further
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 preparation of its 2021 year-end Consolidated Financial Statements are thesame as applied for the previous year. Other than that, amendments, improvements to and interpretations of standards effectivefrom 1 January 2021 have no material impact on the Consolidated Financial Statements.

New, Revised or Amended IFRSs Applied from 1 January 2021
Amendments to IFRS 16 Leases: COVID-19 – Related Rent Concessions beyond 30 June 2021
In March 2021, the IASB issued COVID-19-related Rent
Concessions beyond 30 June 2021 to extend by another year
the practical relief to lessees in accounting for rent concessions
occurring as a direct consequence of COVID-19.

18

Airbus / Financial Statements 2021

The Company has applied in advance of its effective date thepractical expedient retrospectively to all rent concessions thatmeet the conditions of the practical expedient and has accounted
for them in the same manner as for a resolution of a contingency
that ﬁxes previously variable lease payments.

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

As such, the Company has not updated the discount rate used
to re-measure the lease liability and used the re-measured
consideration with a corresponding adjustment to the rightto-use. The Company re-assessed that the application ofthis amendment, with the extension of the relief until 30 June
2022, has still no material impact on the Consolidated Financial
Statements as of 31 December 2021.

Amendments to IFRS 9, IAS 39 and IFRS 7 “Interest Rate Benchmark Reform – Phase 2”
Following the ﬁnancial crisis, the reform and replacement ofsome benchmark interest rates such as LIBOR and other
Interbank Offered Rates (“IBORs”) has become a priority for
global regulators. There is still some uncertainty around thetiming and precise nature of these changes.
The Company’s treasury is managing the transition plan,so that the existing contracts that refer to LIBORs shall be
adjusted to ensure contract continuity after cessation of relevantbenchmarks and address term and credit differences between
LIBORs and alternative reference rates. The changed reference
rates will also impact systems, processes and risk and valuation
models.
To manage the transition of the USD LIBOR-referenced
derivatives contracts, the Company will adhere to the ISDA
Fallback protocol that ensures an automatic transition on theofﬁcial cessation date scheduled on 30 June 2023 as statedby the UK FCA (Financial Conduct Authority) on 5 March 2021.
The ofﬁcial spread adjustment published by Bloomberg andfixed on 5 March 2021 (official announcement date of the
LIBOR cessation) will apply. On USD LIBOR-referenced loan
contracts, the Company will apply a similar transition scheme
to the derivative contracts.
The Company is mainly exposed to USD LIBOR under Airbus
Bank loan assets portfolio for an amount of € 301 million (for anotional amount of US$ 524 million) and the interest rate swaps
based on USD LIBOR used in the hedge relationship, for an
amount of € 64 million (for a notional amount of US$ 1.5 billion)
as developed under “– Note 37: Financial Instruments”.
The Phase 2 amendments have no impact on these Consolidated
Financial Statements as existing contracts continue to refer to
LIBORs as of 31 December 2021.

Agenda Decision published by the IFRS Interpretation Committee (“IFRIC”)
In April 2021, IFRIC published an agenda decision, “Conﬁguration
or Customisation Costs in a Cloud Computing Arrangement”,
which considered how an entity should account for conﬁgurationand customisation costs incurred in implementing these service
arrangements. IFRIC concluded that these costs should be

expensed, unless the criteria for recognising a separate asset
are met. The Company is currently undertaking the analysis
required to quantify the potential impact and assessing whether
a change in accounting policy would be required or not.

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 the year ended 31 December 2021 and have not been applied in preparing these Consolidated Financial Statements and early
adoption is not planned:
IASB effective date
for annual reporting periods
beginning on or afterEndorsement
statusAmendments to IFRS 3 “Reference to the Conceptual Framework”

1 January 2022

Endorsed

Amendments to IAS 16 “Property, Plant and Equipment – Proceeds before
Intended Use”

1 January 2022

Endorsed

Amendments to IAS 37 “Onerous Contracts – Cost of Fulfilling a Contract”

1 January 2022

Endorsed

Annual Improvements to IFRS Standards 2018–2020

1 January 2022

Endorsed

IFRS 17 “Insurance Contracts”

1 January 2023

Endorsed

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

1 January 2023

Not yet endorsed

Amendments to IAS 8 “Definition of Accounting Estimates”

1 January 2023

Not yet endorsed

Amendments to IAS 1 “Disclosure of Accounting Policies”

1 January 2023

Not yet endorsed

Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arisingfrom a Single Transaction”

1 January 2023

Not yet endorsed

Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 –Comparative Information”

1 January 2023

Not yet endorsedStandards and amendments

Airbus / Financial Statements 2021

219

2. Notes to the IFRS Consolidated Financial Statements /2.2 Airbus Structure

6.

Climate impacts

Climate change may have a major impact on both the Company’s
industrial operations and its upstream and downstream value
chain, including aircraft direct operations and the wider airtransport ecosystem along with a strong inﬂuence on regulations
and stakeholders expectations. Accordingly, climate-relatedrisks can potentially affect the Company’s business andcompetitiveness, its customers and other actors in the aviationindustry. For further information on climate-related risks, pleaserefer to the Report of the Board of Directors – 4.6 Risk Factors –“Climate-Related Risks”. For more details on speciﬁc impacts,
see “– Note 19: Intangible Assets”, “– Note 20: Property, Plant
and Equipment” and “– Note 33: Remuneration”.
The Company is committed to contributing to meeting theParis Agreement targets and in taking a leading role in the
decarbonisation of the aviation sector in cooperation withall stakeholders. For further information, please refer tothe Report of the Board of Directors – 6.1 Non-Financial
Information – 6.1.2 “Lead the Journey Towards Clean Aerospace”.

The Company continuously assesses potential impactsof identified environmental risks and opportunities. As of
31 December 2021, to the best of the Company’s judgement,
there is no impact on the Company’s assets and liabilities. The
Company considered the assumptions related to the life cycleof its main programmes and the related impacts on long-lived
assets impairments and concluded that there was no need for
impairment. Similarly, the Company did not identify any need forrevision to the useful lives of the property, plant and equipment
and intangible assets.
The Company shares the EU’s ambition to reach a netzero carbon aviation ecosystem in Europe by 2050, and willcontribute to the EU’s “2030 Climate Target Plan”. Further
sustainability activities will continue to accelerate, especiallywith the objective to bring a zero emission commercial aircraft
to market in 2035.

2.2 Airbus Structure
7.

Scope of Consolidation

Consolidation — The Company’s Consolidated Financial
Statements include the Financial Statements of Airbus SE
and all material subsidiaries controlled by the Company. The
Company’s subsidiaries prepare their Financial Statements at thesame 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
a narrow 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 asecond 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
2021

2020

178

177

in joint ventures

57

58

in associates

23

25

Total

258

260

(Number of companies)

Fully consolidated entities
Investments accounted for under the equity method

For more details related to unconsolidated and consolidated structured entities, see “– Note 27: Sales Financing Transactions”.

20

Airbus / Financial Statements 2021

2. Notes to the IFRS Consolidated Financial Statements /2.2 Airbus Structure8.

Acquisitions and Disposals

Business combinations are accounted for using the acquisition
method, as at the acquisition date, which is the date 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 signiﬁcant estimates. Land, buildings andequipment are usually independently appraised while marketablesecurities are valued at market prices. If intangible assets are
identiﬁed, depending on the type of intangible asset and thecomplexity 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
concerned and the discount rate applied.
Loss of control, loss of joint control, loss of signiﬁ cantinﬂuence — Upon loss of control of a subsidiary, the assets
and liabilities and any components of the Company’s equity

8.1

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 sufﬁcient evidence
that the loss of control will occur in the 12 months after theclassiﬁcation. These assets and liabilities are presented after
elimination of intercompany transactions.
When the loss of signiﬁcant inﬂuence or the loss of joint control
of an investment accounted for under the equity method is highly
probable and is expected to occur in the coming 12 months, thisassociate or joint venture is classiﬁed as an asset held for sale.
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.

Acquisitions

In 2020, Bombardier transferred its remaining shares in
Airbus Canada Limited Partnership (“ACLP”) to Airbus andInvestissement Québec (“IQ”). As per the agreement, Airbus
acquired an additional 29.64% of the issued shares in ACLP.
This agreement brought the shareholdings in ACLP for Airbus
and IQ to 75% and 25%, respectively.
Airbus paid to Bombardier a consideration of US$ 591 million ofwhich US$ 531 million was received at closing and US$ 60 million
to be paid over the 2020-22 period under certain conditions.
The agreement also provides for the cancellation of Bombardier
warrants owned by Airbus, as well as releasing Bombardierof its future funding capital requirement to ACLP, previously
performed through the non-voting participation Class B common
units in ACLP.

8.2

related to the subsidiary are derecognised. Any gain or loss
arising from the loss of control is recognised within other income
or other expenses in the Consolidated Income Statement. If theCompany retains any interest in the previous subsidiary, suchinterest is measured at fair value at the date the control is lost.

The call rights of Airbus in respect of all IQ’s interests in ACLP
at fair market value have been extended by an additional three
years to January 2026.
The effect of this equity transaction on the equity attributable tothe owners of ACLP amounted to € -53 million.
As part of this transaction, Airbus, via its wholly owned subsidiary
Stelia Aerospace, also acquired the A220 and A330 work
package production capabilities from Bombardier in Saint
Laurent, Québec. Under this non-material transaction, the fairvalue of the net assets acquired amounted to US$ -4 million.

2

Disposals

On 15 December 2021, the Company divested to a 50% joint
venture one of its sites in France. The assets relative to thisdisposal were previously classiﬁed as held for sale for an amountof € 67 million.

The Company received a consideration of € 310 million andrecognised a gain of € 122 million, reported in Airbus Defence
and Space other income.

Airbus / Financial Statements 2021

21

2. Notes to the IFRS Consolidated Financial Statements /2.2 Airbus Structure

8.3

Cash Flows from Disposals including Assets and Disposal Groups
Classified as Held for Sale

The following table provides details on cash ﬂows from disposals (resulting in assets and liabilities disposed) of subsidiaries, joint
ventures and businesses:(In € million)

Total selling price received by cash and cash equivalents
Cash and cash equivalents included in the disposed subsidiaries

Total

2021

2020

310

0

0

0

310

0

The aggregate cash ﬂows from assets and disposals groups classiﬁed as held for sale in 2021 result from the divestment of oneof its sites in France.

9.

Investments Accounted for under the Equity Method
31 December(In € million)

2021

2020

Investments in joint ventures

1,471

1,367

Investments in associates

Total

201

211

1,672

1,578

Investments accounted for under the equity method increased by € +94 million to € 1,672 million (2020: € 1,578 million). They
mainly include the equity investments in ArianeGroup, MBDA and ATR GIE.

9.1

Investments in Joint Ventures

The joint ventures in which the Company holds an interest are structured in separate incorporated companies. Under joint arrangementagreements, unanimous consent is required from all parties to the agreement for all relevant activities. The Company and its partners
have rights to the net assets of these 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)

2021

2020

Carrying amount of the investments at 1 January

1,367

1,444

New joint ventures

49

0

Share of results from continuing operations

73

31

Share of other comprehensive income

116

(57)

6

(49)

Dividends received during the year
Changes in consolidation

(28)

0

Others

(112)

(2)

1,471

1,367

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),
and ATR 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 andSafran. ArianeGroup is the head company in a group comprising
several subsidiaries and affiliates, all leading companies
in their ﬁ elds, such as: APP, Arianespace, Cilas, Eurockot,
Eurocryospace, Europropulsion, Nuclétudes, Pyroalliance,

22

Airbus / Financial Statements 2021

Regulus, Sodern and Starsem. ArianeGroup inherits a richportfolio of products and services, enabling it to deliver innovativeand competitive solutions to numerous customers around theworld.
The Company holds a 37.5% stake in MBDA at 31 December
2021, 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.

2. Notes to the IFRS Consolidated Financial Statements /2.2 Airbus Structure

ATR GIE manufactures advanced turboprop aircraft. It is a
50% joint venture between Leonardo group company and theCompany. Both Leonardo and the Company provide airframes
which are assembled by ATR GIE in France. The membersof ATR GIE are legally entitled exclusively to the beneﬁts andare liable for the commitments of the joint venture. ATR GIE is
obliged to transfer its cash to each member of the joint venture.

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)

2021

2020

2021

2020

2021

2020

Revenue

3,129

2,718

4,234

3,592

707

398

Depreciation and amortisation

(157)

(128)

(165)

(143)

21

(6)

Interest income

1

9

8

5

0

0

Interest expense

(12)

(27)

(13)

(17)

0

0

Income tax expense

40

9

(112)

(119)

0

1

Profit from continuing operations

(39)

(6)

344

279

(48)

(138)

Other comprehensive income

Total comprehensive income (100%)

15

(14)

266

(157)

0

0

(24)

(20)

610

122

(48)

(138)

Non-current assets

6,129

6,111

2,727

2,687

267

262

Current assets

6,466

6,260

7,849

7,841

720

835

1,223

642

2,819

2,851

6

9

1,008

1,152

766

1,104

203

165

thereof cash and cash equivalents
Non-current liabilities
thereof non-current financial liabilities(excluding trade and other payables and provisions)

423

483

6

3

0

0

7,451

7,075

8,733

8,821

662

901

129

53

21

27

0

0

Total equity (100%)

4,136

4,144

1,077

603

122

31

Equity attributable to the equity owners of the parent

4,126

4,144

1,077

603

122

31

10

0

0

0

0

0

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

ArianeGroupMBDA

ATR GIE(In € million)

2021

2020

2021

2020

2021

2020

The Company’s interest in equity on investee

2,063

2,072

404

226

61

15

244

244

282

282

0

0

(1,519)(1,519)

0

0

0

0

Airbus Defence and Space PPA (including 2016 Ariane 6 catch-up)

(121)

(71)

0

0

0

0

Contingent liability release adjustment

(36)

(36)

0

0

0

0

Fair value adjustments and modifications for differencesin accounting policies

0

Goodwill
PPA adjustments, net of tax

(101)

(23)

(10)

(10)

0

Dividend adjustment

0

0

0

0

3

0

Elimination of downstream inventory

2

2

0

0

(5)

(5)

532

669

676

498

59

10

Carrying amount of the investment at 31 December

Airbus / Financial Statements 2021

223

2. Notes to the IFRS Consolidated Financial Statements /2.2 Airbus Structure

The development of these investments is as follows:
ArianeGroupMBDA

ATR GIE

2021

2020

2021

2020

2021

2020

Carrying amount of the investment at 1 January

669

699

498

450

10

106

Share of results from continuing operations

(66)

(22)

130

107

(23)

(68)

Share of other comprehensive income

5

(8)

99

(57)

(4)

5

Dividends received during the year

0

0

(49)

0

76

(33)
0

(In € million)

5

0

0

0

0

Others

(81)

0

(2)

(2)

0

0

Carrying amount of the investment at 31 December

532

669

676

498

59

10

Changes in consolidation

The Company’s share of contingent liabilities and other commitments as of 31 December 2021 relating to MBDA is € 393 million(2020: € 450 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:
2021

2020

Carrying amount of the investment at 1 January

211

182

Share of results from continuing operations

(33)

8

Share of other comprehensive income30

32(In € million)

Dividends received during the year

(6)

(44)

Changes in consolidation

028

Disposal of shares

0

5

OthersCarrying amount of the investment at 31 December

(1)

0

201

211

The cumulative unrecognised comprehensive loss for these associates amounts to € -12 million and € -97 million as of 31 December
2021 and 2020, respectively (thereof € 85 million for the period).

10.

Related Party Transactions(In € million)

Sales of
Purchases ofgoods andgoods andservices andservices and Receivables atother income other expenses 31 December

Loans granted /Other receivables
Liabilities atdue at31 December
31 December

Loans received /Other liabilities
due at31 December

2021
Total transactions
with associates

7

132

3

22

108

0

Total transactions
with joint ventures

2,807

212

930

1,239

0

1,410

Total transactions
with associates

9

42

6

13

101

16

Total transactions
with joint ventures

2,596

186

1,294

1,176

5

1,275

2020

Transactions with unconsolidated subsidiaries are immaterial to
the Company’s Consolidated Financial Statements.
As of 31 December 2021, the Company granted guarantees of€ 129 million to Air Tanker Group in the UK (2020: € 129 million).

24

Airbus / Financial Statements 2021

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

2.3 Segment Information
The Company operates in three reportable segments which reﬂ ect the internal organisational and management structure
according to the nature of the products and services provided.
– Airbus — Development, manufacturing, marketing and saleof commercial jet aircraft of more than 100 seats, aircraft
conversion and related services; development, manufacturing,marketing and sale of regional turboprop aircraft and aircraftcomponents. It also includes the holding function of theCompany and its bank activities.
– Airbus Helicopters — Development, manufacturing,marketing and sale of civil and military helicopters; provisionof helicopter related services.

– Airbus Defence and Space — Military Aircraft design,development, delivery, and support of military aircraft suchas combat, mission, transport and tanker aircraft and theirassociated services. Space Systems design, development,delivery, and support of full 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, the main
joint ventures design, develop, deliver, and support missile
systems as well as space launcher systems. Unmanned Aerial
Systems design, development, delivery and service support.

On 21 April 2021, the Company presented its plans to create integrated aerostructures assembly companies in both France andGermany, and a third company as a new global player in the detail parts business, anchored in Germany.
The plans have no impact on the segment structure described above (see “– Note 40: Events after the Reporting Date”).

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 2021 is as follows:
AirbusDefenceand Space

Eliminations

Consolidated
Airbus(In € million)

AirbusAirbusHelicopters

Total revenue

36,164

6,509

10,186052,859Internal 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)
thereofdepreciation and amortisation
research and development expenses
share of profit from investments accounted
for under the equity method
additions to other provisions (1)Interest result
Other financial result
Income taxes(425)
35,739

(230)
6,279

(55)
10,13100(710)
52,14933,455
20
2,264
4,175

3,298
192
2,789
535

3,076
3,557
3,498
568

0
0
0
64

39,829
3,769
8,551
5,342

(1,616)(2,252)

(184)
(275)

(525)
(249)

0
30

(2,325)(2,746)

(29)
(989)

0
(398)

69
(870)

0
27

40
(2,230)
(246)
(69)
(853)

Profit for the period

2

4,174

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

Airbus / Financial Statements 2021

25

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

Business segment information for the year ended 31 December 2020 is as follows:
AirbusDefenceand Space

Eliminations

Consolidated
Airbus(In € million)

AirbusAirbusHelicopters

Total revenue

34,2506,251

10,446

050,947

Internal revenue
Revenue
thereofsales of goods at a point in timesales of goods over time
services, including sales of spare parts
Profit (Loss) before financial result and income taxes (EBIT)
thereofdepreciation and amortisation
research and development expenses
share of profit from investments accounted
for under the equity method
additions to other provisions(689)
33,561

(271)
5,980

(75)
10,37100(1,035)49,912

31,33137
2,193(1,330)

3,144
273
2,563
455

2,921
4,084
3,366
408

0
0
0
(43)

37,396
4,394
8,122
(510)

(1,951)(2,436)

(208)
(273)

(672)
(225)

0
76

(2,831)(2,858)(80)(2,371)

6
(398)

113
(980)

0
(11)

39
(3,760)Interest result
Other financial result
Income taxes

(271)
(349)
(39)

Loss for the period(1,169)Segment capital expenditures

31 December(In € million)

2021

2020

Airbus

1,270

1,191

Airbus Helicopters

175

113

Airbus Defence and Space

483

455

Eliminations

Total capital expenditures (1)

0

0

1,928

1,759

(1) Excluding expenditure for leased assets.

Segment assets

31 December(In € million)

2021

2020
65,180Airbus60,673

Airbus Helicopters

8,500

8,757

Airbus Defence and Space

17,081

16,701Eliminations(6,765)(6,593)

Total segment assets

79,48984,045

UnallocatedDeferred and current tax assets

4,875

4,643

Securities

8,111

6,968

14,572

14,4390

0

107,047

110,095

Cash and cash equivalents
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 by geographicalareas is disclosed in “– Note 20: Property, Plant and Equipment”.

26

Airbus / Financial Statements 2021

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

Segment order backlog

31 December
2021

2020

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

Airbus345,10187

324,675

87

Airbus Helicopters

17,985

4

15,782

4

Airbus Defence and Space

36,131

933,505

9

(778)

0

(835)

0

398,439100

373,127

100

Eliminations
Total

As of 31 December 2021, 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 the presentation
currency are translated to euro using the spot rate as of

31 December 2021 and 2020 respectively. Adjustments to thevalue of the backlog could result from changes in the transaction
price. The backlog will mainly be released into revenue over a
period of seven years.
The increase mainly reﬂects the strengthening of the US dollar. In
Airbus, total gross commercial aircraft orders amount to 771
units (2020: 383 units) with net orders of 507 aircraft aftercancellations (2020: 268 aircraft) and total deliveries amount to
611 units (2020: 566 units) as of 31 December 2021.

2.4 Airbus Performance
12.

Revenue and Gross Margin

Revenue increased by € +2,237 million to € 52,149 million (2020: € 49,912 million). The increase is mainly driven by Airbus(€ +2,178 million) reﬂecting higher aircraft deliveries partly offset by an unfavourable foreign exchange impact.
Revenue by geographical areas based on the location of the customer is as follows:(In € million)

2021

2020

Asia-Pacific

15,97013,087

Europe19,49020,325

North America

10,546

8,688

Middle East

2,256

3,123

Latin America

980

983

Other countries

2,907

3,706

52,14949,912Total

The gross margin increased by € +3,969 million to € 9,631 million
compared to € 5,662 million in 2020. It mainly reﬂects higher
aircraft deliveries at Airbus as well as a release of COVID-related
provisions for an amount of € 0.4 billion. In addition, in 2020,
Airbus was impacted by lower cost efﬁciency and recorded
charges of € 1.2 billion triggered by the COVID-19 pandemic.
The gross margin rate increased from 11.3% to 18.5%.
The Company delivered the last A380 aircraft in 2021. As aconsequence and in addition to the net charge recorded in 2018,
the Company recorded a net charge of € 385 million in EBIT in2020 as part of its continuous assessment of asset recoverability
and review of onerous contract provision assumptions. In 2021,
a positive EBIT impact of € 274 million was recorded, mainly2

reﬂecting the release of provision recorded in 2018 on the former
A380 Lagardère facility that will be used for the modernised
A320 FAL.
As of 31 December 2021, the Company has delivered a totalof 105 A400M aircraft including 8 aircraft in 2021.
The COVID-19 pandemic is weighing on the performance ofdevelopment, production, ﬂight testing, aircraft delivery andretroﬁt activities of the programme. The Company has continued
with development activities toward achieving the revised
capability roadmap. Retroﬁt activities are progressing in closealignment with the customer.

Airbus / Financial Statements 2021

27

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

In 2020, an update of the contract estimate at completion was
performed and a charge of € 63 million recorded reﬂecting mainly
the variation of price escalation indexes. In 2021, an update of
the contract estimate at completion has been performed and an
additional charge of € 212 million has been recorded. This reﬂects
mainly the updated estimates on the delivery pattern of the launch
contract and the associated impact on unabsorbed costs.
Risks remain on the development of technical capabilities andassociated costs, on aircraft operational reliability in particularwith regard to power plant, on cost reductions and on securingexport orders in time as per the revised baseline.

13.

Defence export licences to Saudi Arabia were suspended by theGerman Government until 31 March 2020. A revised Estimate
at Completion (EAC) for a customer contract was performed asof 31 December 2020, and the Company continues to engage
with its customer to agree a way forward. The outcome of thesenegotiations is presently unclear but could result in further
signiﬁcant ﬁnancial impacts. The year-end 2020 assessment
remains unchanged as of 31 December 2021.

Research and Development Expenses

Research and development expenses decreased by € -112 million to € 2,746 million compared to € 2,858 million in 2020.

14.

Other Income and Other Expenses

Other income increased by € +462 million to € 594 million
compared to € 132 million in 2020. In 2021, it includes the gainof € 122 million for the divestment of one of its sites to a joint
venture (see “– Note 8: Acquisitions and Disposals”).

15.

Other expenses decreased by € -1,257 million to € -201 million
compared to € -1,458 million in 2020, mainly due to therestructuring provision recorded in 2020 for an amount of€ 1.2 billion in response to the COVID-19 pandemic.

Share of Proﬁt from Investments Accounted for under
the Equity Method and Other Income from Investments(In € million)

2021

2020

Share of profit from investments in joint ventures

73

31

Share of profit from investments in associates

(33)

8

Share of profit from investments accounted for under the equity method

40

39

Other income from investments

76

113

Share of profit from investments under the equity method and other income from investments decreased by € -36 million to€ 116 million compared to € 152 million in 2020. It includes dividends received from other investments classiﬁed at fair value throughOCI for an amount of € 108 million (2020: € 137 million).

28

Airbus / Financial Statements 2021

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 the effective interest rate method.
2021

2020

Interests on European governments’ refundable advances

(112)

(108)

Others

(134)

(163)

(246)

(271)

(In € million)

Total interest result(1)

Change in fair value measurement of financial instruments
Foreign exchange translations on monetary items

(370)

111

53

(28)

Unwinding of discounted provisions

(19)

(25)

Others267(407)

Total other financial result

(69)

(349)

Total

(315)

(620)

(1) In 2021, the total interest income amounts to € 88 million (2020: € 140 million) for financial assets which are not measured at fair value through profit or loss. For financial liabilities
which are not measured at fair value through profit or loss € -334 million (2020: € -411 million) are recognised as total interest expenses. Both amounts are calculated by using theeffective interest method.

Total financial result improved by € +305 million to € -315 million
compared to € -620 million in 2020. This is driven by the revaluationof certain equity investments (see “– Note 21: Other Investments
and Other Long-Term Financial Assets”), compensated by a17.

negative impact from revaluation of ﬁnancial instruments. In
addition, in 2020 it included the remeasurement on the A350
Repayable Launch Investment (“RLI”) (see “– Note 25: Other
Financial Assets and Other Financial Liabilities”).

Income Taxes

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

2021

2020

Current tax expense

(348)

227

Deferred tax expense

(505)

(266)

Total

(853)

(39)

2021

2022

> 20222

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

(1)

25.00

25.80

25.80

France (2)

28.41

25.83

25.83

Germany

30.00

30.00

30.00

Spain

25.00

25.00

25.00

(3)

19.00

19.00

25.00

UK

(1) A tax law has been enacted in 2021 increasing the rate for income taxes to 25.80% in 2022 and beyond.
(2) In 2019, a tax law has been enacted changing the rate for income taxes to 28.41% in 2021 and 25.83% from 2022 and beyond.
(3) A tax law has been enacted in 2021 increasing the rate for income taxes to 25.00% from April 2023 and beyond.

Airbus / Financial Statements 2021

29

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):2021(In € million)

2020

Profit (Loss) before income taxes

5,027(1,130)

Corporate income tax rate

25.0%

25.0%

Expected (expense) for income taxes(1,257)

283

(103)

(4)

5

(3)

Income from investment and associates

23

24

Tax credit

53

13

Effects from tax rate differentials / Change of tax rate
Capital gains and losses on disposals / mergers

Change in valuation allowances(1)

Tax contingencies
Other non-deductible expenses and tax-free income

Reported tax (expense)

116

(356)

186

147

124

(143)

(853)

(39)

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

The income tax expense amounts to € -853 million (2020:€ -39 million) and corresponds to an effective income tax
rate of 17.0%. This includes positive impacts from tax risk
updates, the tax-free revaluation of certain equity investments
under IFRS 9 and a net release of deferred tax asset impairments
mainly due to an updated business outlook. Management willcontinue to assess its tax contingencies going forward, whose
outcome could result in further ﬁnancial impacts.
In 2020, the effective tax rate was mainly driven by the negative
pre-tax result offset by deferred tax impairments and tax-free
revaluation of certain equity investments.
As the Company controls the timing of the reversal of temporary
differences associated with its subsidiaries (usually referred to as“outside basis differences”) arising from yet undistributed proﬁts
and changes in foreign exchange rates, it does not recognise30

Airbus / Financial Statements 2021

a deferred tax liability. For temporary differences arising frominvestments in associates the Company recognises deferred
tax liabilities. The rate used reﬂects the assumptions that thesedifferences will be recovered from dividend distribution unlessa management resolution for the divestment of the investment
exists at the closing date. For joint ventures, the Company
assesses its ability to control the distribution of dividends basedon existing shareholder agreements and recognises deferred
tax liabilities accordingly.
As of 31 December 2021, 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€ 145 million.

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

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

NOL

Germany

Spain

UK

Other
countries

372

3,224

338

1,417

2,934

8,285

7,625

0

3,530

0

0

0

3,530

3,263

FranceTrade tax loss carry forwards

31 December
2021

31 December
2020

Tax credit carry forwards

0

0

216

0

5

221

279

Tax effect

96

1,010

300

354

759

2,519

2,283

Valuation allowances

(13)

(984)

(207)

(85)

(712)

(2,001)(1,927)

Deferred tax assets on NOLs
and tax credit carry forwards

83

26

93

269

47

518

356

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)

2021

2020

Net deferred tax assets at 1 January

3,572

4,610

Deferred tax expense in income statement

(505)

(266)

Deferred tax recognised directly in AOCI

1,435

(893)

Deferred tax on remeasurement of the net defined benefit pension plans

(368)

358

73

(237)

4,207

3,572

(In € million)

2021

2020

Financial assets at fair value through OCI

(102)

(128)

OthersNet deferred tax assets at 31 December

Details of deferred tax recognised cumulatively in equity are as follows:

Cash flow hedges

1,323

(86)

Deferred tax on remeasurement of the net defined benefit pension plans

2,126

2,494

Total

3,347

2,280

Airbus / Financial Statements 2021

231

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

Deferred income taxes as of 31 December 2021 are related to the following assets and liabilities:
1 January 2021

Other movements

Movement throughincome statement

31 December 2021

R&D
tax
credits

Deferredtax benefit(expense)

Deferredtax
assetsDeferredtax
assetsDeferredtax
liabilities

OCI /IAS 19Intangible assets

186

(489)

0

(71)

0

72

249

(551)

Property, plant and equipment

30

(313)

0

67

0

(548)

49

(813)

(In € million)

Others(1)

Deferredtax
liabilities

Investments and other long-term
financial assets

1,174

(83)

0

0

0

22

1,221

(108)

Inventories

3,088(1,603)

0

21

0

659

3,658

(1,493)

Receivables and other assets

2,457(1,692)

(424)

17

0

(1,041)806(1,489)Prepaid expenses

0

(2)

0

0

0

10

11

(3)

Provisions for retirement plans

1,188

0

(450)

114

0

231

1,071

12

Other provisions

2,043

(330)

0

55

0

(1,151)

754

(137)

Liabilities

1,966(3,665)

1,886

(194)

0

1,114

2,930

(1,823)

Deferred income

53

(117)

0

16

0

(199)

(5)

(242)

NOLs and tax credit carry forwards

2,283

0

0

50

(24)

210

2,519

0

Deferred tax assets (liabilities)
before offsetting

14,468(8,294)

1,012

75

(24)

(621)

13,263(6,647)

Valuation allowances on deferred
tax assets(2,602)

0

55

(37)

59

116

(2,409)0

Set-off(7,843)

7,843

0

0

0

0

(6,531)

6,531

Net deferred tax assets(liabilities)

4,023

(451)

1,067

38

35

(505)

4,323

(116)

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

Deferred income taxes as of 31 December 2020 are related to the following assets and liabilities:
1 January 2020

Other movements

Movement throughincome statement

31 December 2020

R&D
tax
credits

Deferredtax benefit(expense)

Deferredtax
assetsDeferredtax
liabilities

Deferredtax
assetsDeferredtax
liabilities

OCI /IAS 19Intangible assets

221

(503)

0

(10)

0

(11)

186

(489)

Property, plant and equipment

55

(281)

0

(4)

0

(53)

30

(313)

Investments and other long-term
financial assets

1,897

(38)

0

(14)

0

(754)

1,174

(83)

Inventories

2,636

(37)

0

(15)

0

(1,099)3,088(1,603)

Receivables and other assets

1,937(1,310)(1,086)

53

0

1,171

2,457

(1,692)

13

0

0

0

0

(15)

0

(2)

(In € million)

Prepaid expenses
Provisions for retirement plans

Others

961

0

451

(16)

0

(208)

1,188

0

Other provisions

2,026

(557)

0

(4)

0

248

2,043

(330)

Liabilities

1,528(3,642)

160

(83)

0

338

1,966

(3,665)

19

(236)

0

2

0

151

53

(117)

NOLs and tax credit carry forwards

2,073

0

0

(69)

(43)

322

2,283

0

Deferred tax assets (liabilities)
before offsetting

13,366(6,604)

(475)

(160)

(43)

90

14,468(8,294)

Valuation allowances on deferred
tax assets(2,152)

0

(59)

48

(83)

(356)

(2,602)0

Set-off(6,206)

6,206

0

0

0

0

(7,843)

7,843

Net deferred tax assets(liabilities)

5,008

(398)

(534)

(112)

(126)

(266)

4,023

(451)

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

32

(1)

Airbus / Financial Statements 2021

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

18.

Earnings per ShareProfit (Loss) for the period attributable to equity owners of the parent (Net income)Weighted average number of ordinary shares

2021

2020

€ 4,213 million€ (1,133) million

785,326,074

783,178,191€ 5.36€ (1.45)

Basic earnings per share

Diluted earnings per share – The Company’s dilutive potential ordinary shares are share-settled Performance Units relating toLong-Term Incentive Plans (“LTIP”).
During 2021, the average price of the Company’s shares exceeded the exercise price of the share-settled Performance Units andtherefore 575,926 shares were considered in the calculation of diluted earnings per share.
As there was a loss in 2020, the effect of potentially dilutive ordinary shares was anti-dilutive.

Profit (Loss) for the period attributable to equity owners of the parent (Net income),
adjusted for diluted calculation
Weighted average number of ordinary shares (diluted)

(1)

2021

2020

€ 4,213 million€ (1,133) million

785,902,000

783,178,191€ 5.36€ (1.45)

Diluted earnings per share(1) In 2021, dilution assumes conversion of all potential ordinary shares.

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 3:
Signiﬁcant Accounting Policies”) and (iii) other intangible assets, e.g. internally developed software and acquired intangible assets.

2

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 2021 and 2020 comprise the following:
31 December 2021

31 December 2020

(In € million)GrossamountAmortisation /Impairment

Net book
value

Gross
amountAmortisation /Impairment

Net book
value

Goodwill

14,072(1,044)

13,02814,039(1,040)12,999

Capitalised development costs

2,534(1,248)

1,286

3,210

(1,952)

1,258

Other intangible assets

5,043(2,990)

2,053

4,807

(2,865)

1,942

21,649(5,282)

16,36722,056(5,857)

16,199Total

Airbus / Financial Statements 2021

33

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

NET BOOK VALUE(In € million)

Balance at
Changes in
1 January Exchange
consolidation
2021 differences Additions
scope

Reclassification

Balance at
Amortisation / 31 December
Disposals
Impairment
2021

Goodwill

12,999

28

1

0

0

0

0

13,028

Capitalised
development
costs

1,258

12

152

0

(14)

(16)

(106)

1,286

Other
intangible
assetsTotal(In € million)

1,942

113

199

(1)

16

(5)

(211)

2,053

16,199

153

352

(1)

2

(21)

(317)

16,367

Amortisation /Disposals
Impairment

Balance at
31 December
2020

Balance at
Changes in
1 January Exchange
consolidation
2020 differences Additions
scope

Reclassification

Goodwill

13,019

(30)

10

0

0

0

0

12,999

Capitalised
development
costs

1,460

(9)

101

0

0

(72)

(222)

1,258

Other
intangible
assets

Total

2,112

(128)

199

1

(13)

3

(232)

1,942

16,591

(167)

310

1

(13)

(69)

(454)

16,199Intangible assets increased by € +168 million to € 16,367 million (2020: € 16,199 million). Intangible assets mainly relate to goodwillof € 13,028 million (2020: € 12,999 million).

Capitalised Development Costs
The Company has capitalised development costs inthe amount of € 1,286 million as of 31 December 2021(€ 1,258 million as of 31 December 2020), mainly for Airbus
programmes (€ 676 million), Airbus Helicopters (€ 340 million)

and Airbus Defence and Space (€ 271 million). Based on
management’s best estimate, there is no impact on the useful lifeof capitalised development costs resulting from the Company’s
journey towards sustainable aerospace.

Impairment Tests
Each year the Company assesses whether there is an indicationthat 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 are tested for impairment annually,irrespective of whether there is any indication for impairment.
An impairment loss is recognised in the amount by which theasset’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 internal management purposes.
The discounted cash flow method is used to determine
the recoverable amount of a CGU or the group of CGUs towhich goodwill is allocated. The discounted cash ﬂow method
is particularly 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”)

34

Airbus / Financial Statements 2021

for the groups of cash-generating units. 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, slight changes
to these elements can materially affect the resulting valuation andtherefore the amount of a potential impairment charge.
These estimates are inﬂuenced by several assumptions including
the growth rate of CGUs where a rate of 1% has been applied,
the increase of deliveries in the coming years, the availability
and composition of future defence and institutional budgets,and foreign exchange ﬂuctuations or implications arising fromthe volatility of capital markets. Cash ﬂow projections take into
account past experience and represent management’s best
estimate of future developments.

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

The Company tested the intangible assets for which an indicator of impairment was identiﬁed. In particular, the Company tested
the intangible assets associated with some aircraft programmes and concluded that no impairment was necessary.
As of 31 December 2021 and 2020, goodwill was allocated to CGUs or group of CGUs and is summarised in the following schedule:
AirbusDefenceand Space

Eliminations

Consolidated
Airbus(In € million)

AirbusAirbusHelicopters

Goodwill as of 31 December 2021

10,731

139

2,158

0

13,028Goodwill as of 31 December 2020

10,710

139

2,150

0

12,999The goodwill mainly relates to the creation of the Company in 2000 and the Airbus Combination in 2001.
The annual impairment tests performed in 2021 led to no impairment charge. Sensitivities were also performed for growth rates(+/-1%) and discount rates (+/-1%), and in both cases led to no impairment charge.

General Assumptions Appliedin the Planning Process
The basis for determining the recoverable amount is the value in
use of the CGUs. Generally, cash ﬂow projections used for theCompany’s impairment testing are based on operative planning.
The operative planning, used for the impairment test, is based on
the following key assumptions which are relevant for all CGUs:– increase of expected future labour expenses of 3.0% (2020:1.5%);– future interest rates projected per geographical market, for theEuropean Monetary Union, the UK and the US;– future exchange rate of 1.25 US$/€ (2020: 1.25 US$/€) toconvert in euro the portion of future US dollar which is nothedged (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 ofthese Consolidated Financial Statements, have been applied
in individual CGUs.

Airbus– The planning takes into account both the current market
condition and Airbus production rate, and includes
management’s best estimates of the progressive increase inaircraft deliveries over the operative planning period.
– In the absence of long-term ﬁnancial reference, expected cash
ﬂows generated beyond the planning horizon are consideredthrough a terminal value.
– 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 11.0% (2020: 14.1%).

Airbus Helicopters– The planning takes into account the evolution of programmes
based upon the current backlog and an assessment of orderintake for platforms and services.
– In the absence of long-term ﬁnancial reference, expected cash
ﬂows generated beyond the planning horizon are consideredthrough a terminal value.
– Long-term commercial assumptions in respect of market
share, deliveries and market value are based on the latest
helicopter market forecast. This market has started to recoverin 2021, but is expected to remain a challenging environment
due to persistent economic uncertainties lengthening thesales cycle in particular in military due to budget allocation
postponement or reduction, delayed growth of emerging
markets especially in Asia, and the Oil and Gas downturn.
– Cash ﬂows are discounted using a euro weighted pre-tax
WACC of 9.3% (2020: 12.8%).

Airbus Defence and Space– Overall the defence and space markets are expected to havea moderate growth during the period of the operative planninghorizon.
– Business growth is underpinned by growing defence
opportunities. Underlying performance is improved byfocusing on project delivery, cost control and efﬁciency.
– In the absence of long-term ﬁnancial reference, expected cash
ﬂows generated beyond the planning horizon are consideredthrough a terminal value.
– Cash ﬂows are discounted using a euro weighted pre-tax
WACC of 8.3% (2020: 10.1%).

Airbus / Financial Statements 2021

235

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 2021 and 2020 comprises the following:
31 December 2021

31 December 2020

GrossamountDepreciation /Impairment

Net book
value

Gross
amountDepreciation /Impairment

Net book
value

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

10,344(5,324)

5,020

9,767

(5,086)

4,681

Technical equipment and machinery

23,697(16,609)

7,088

23,650(16,582)

7,068

Other equipment, factory and officeequipment (1)3,853(3,013)

840

3,699

(2,888)811

Construction in progress

1,890

0

1,890

2,310

0

2,310

Right-of-use assets (2)

2,486

(788)

1,698

2,426

(622)

1,804

42,270(25,734)

16,53641,852(25,178)

16,674(In € million)

Total(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 € 1,583 million.

NET BOOK VALUE(In € million)

Balance at
Changes in
Balance at
1 January Exchange
consolidation ReclassiDepreciation / 31 December
2021 differences Additions
scope
fication Disposals
Impairment
2021

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

4,681

43

48

5

641

(71)

(327)

5,020

Technical equipment
and machinery

7,068

106

225

1

1,038

(66)

(1,284)

7,088

811

14

150

2

66

(7)

(196)

840

2,310

16

1,289

2

(1,678)

(49)

0

1,890

Other equipment,
factory and officeequipment
Constructionin progress
Right-of-use assets

Total

36

1,804

59

240

0

(96)

(49)

(260)

1,698

16,674

238

1,952

10

(29)

(242)

(2,067)

16,536

Airbus / Financial Statements 2021

2. Notes to the IFRS Consolidated Financial Statements /2.5 Operational Assets and Liabilities(In € million)

Balance at
Changes in
1 January Exchange
consolidation Reclassi2020 differences Additions
scope
fication

Depreciation /Disposals Impairment (1)Balance at
31 December
2020

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

4,823

(37)

104

(7)

168

(44)

(326)

4,681

Technical equipment
and machinery

7,257

(127)

328

(3)

1,158

(36)

(1,509)

7,068

957

(13)

83

0

79

(73)

(222)

811

Other equipment,
factory and officeequipment
Constructionin progress

2,714

(11)

1,008

2

(1,364)

(39)

0

2,310

Right-of-use assets

1,543

(57)

605

15

(23)

(33)

(246)

1,804

17,294

(245)

2,128

7

18

(225)

(2,303)

16,674

Total(1) Accelerated depreciation previously included in onerous contract provision has been offset with the release of the provision in the presentation of the Consolidated Statementof Cash Flows for the year ended 2020.

Property, plant and equipment decreased by € -138 million to € 16,536 million (2020: € 16,674 million). Property, plant and equipment
include right-of-use assets for an amount of € 1,698 million as of 31 December 2021 (2020: € 1,804 million).
Based on management’s best estimate, there is no impact on the useful life of Property, plant and equipment resulting from theCompany’s journey towards sustainable aerospace.
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)

2021

2020

France

7,570

7,736

Germany

4,185

4,350

UK

1,604

1,615

Spain

1,273

1,350

Other countries

1,904

1,623

16,536

16,674Total

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
to IT equipment (e.g. printers, laptops and mobile phones) andother equipment.
The Company incurred interest expense on lease liabilities of€ 22 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 at inception of thelease. The Company calculated the rate applicable to each lease
contract on the basis of the lease duration.

2

The maturity analysis of lease liabilities, based on contractual
undiscounted cash ﬂows is shown in “– Note 37.1: Financial
Risk Management”.

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 are locatedin France, Germany, the US, Canada and China. As lease
contracts are negotiated on an individual basis, lease terms
contain a wide range of different terms and conditions. Leases
are typically made for a ﬁxed period of 3-25 years and may
include extension, termination and other options, which provide
operational ﬂexibility to the Company.

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

Airbus / Financial Statements 2021

37

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

Other leases

Of f-Balance Sheet Commitments

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

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” (€ 598 million as of 31 December 2021,
2020: € 335 million).

21.

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

2021

2020

Other investments

2,511

2,245

Other long-term financial assets

1,490

1,610

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

4,001

3,855

537

468

4,538

4,323

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%, 2020: 9.90%) amounting to € 786 million at
31 December 2021 (2020: € 742 million).

In November 2020, the US Bankruptcy Court entered an orderissuing a ﬁnal decree to allow a consortium of Her Majesty’s
Government HMG and Bharti Global Limited to acquire the newly
re-organised OneWeb.

In March 2020, OneWeb Communications ﬁled under Chapter 11of the US Bankruptcy Code. Consequently, the related ﬁnancial
assets were fully impaired, leading to a decrease in the fair valueof the equity investment by € -137 million recorded through
OCI and a depreciation of a loan by € -136 million recorded
through ﬁnancial result.

As at 31 December 2021, the Company holds a minor investment
in OneWeb which is accounted for at fair value.

22.

Contract Assets and Contract Liabilities, Trade Receivables
and Trade Liabilities

Contract assets represent the Company’s right to considerationin exchange for goods or services that the Company has
transferred to a customer when that right is conditioned
by something other than the passage of time (e.g. revenue
recognised from the application of the PoC method before theCompany has a right to invoice).
Contract liabilities represent the Company’s obligation
to transfer goods or services to a customer for which theCompany has received consideration, or for which an amount ofconsideration is due from the customer (e.g. advance payments
received)

38

Other long-term financial assets and the current portionof other long-term financial assets include other loans in
the amount of € 1,909 million as of 31 December 2021 (2020:€ 1,841 million), and the sales ﬁnancing activities in the formof ﬁnance lease receivables and loans from aircraft ﬁnancing.

Airbus / Financial Statements 2021

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 already occurred. For longterm 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 berecognised within the normal operating cycle of the long-term
contract.

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

Trade receivables arise when the Company provides goods
or services directly to a customer with no intention of trading
the receivable. 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, impaired or amortised.
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:2021(In € million)

2020

Contract
assetsContract
liabilities

Contract
assetsContract
liabilities-(19,311)-(20,327)

Revenue recognised that was included in the contract liability
balance at 1 January
Increases due to cash received, excluding amounts recognised
as revenue (1)-17,792-

20,915

Transfers from contract assets recognised at 1 January(5,765)-(4,353)-

Increase as a result of changes in the measure of progress

6,045

-

4,188

-

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

As of 31 December 2021, trade receivables amounting to € 210 million (2020: € 189 million) will mature after more than one year.
The respective movement in the allowance for doubtful accounts in respect of trade receivables and contract assets during
the period was as follows:(In € million)

2021

2020

Allowance balance at 1 January

(306)

(397)

47

162

Additions

(104)

(71)

Allowance balance at 31 December

(363)

(306)

Utilisations / disposals and business combinations

Trade Liabilities

2

Trade liabilities of € 9,693 million (2020: € 8,722 million) increased by € +971 million, mainly in Airbus.
As of 31 December 2021, trade liabilities amounting to € 89 million (2020: € 67 million) will mature after more than one year.

23.

Inventories
31 December 2021

31 December 2020

GrossamountWritedown

Net book
value

Gross
amountWritedown

Net bookvalue

Raw materials and manufacturing supplies

3,773

(705)

3,068

3,934

(606)

3,328

Work in progress

19,553(2,010)17,542

21,225(2,495)18,730Finished goods and parts for resale

5,356

(800)

4,556

5,919

(691)

5,228

(In € million)

Advance payments to suppliers

Total

3,491

(119)

3,372

3,173

(58)

3,115

32,173(3,634)28,53834,251(3,850)30,401

Airbus / Financial Statements 2021

39

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

Inventories of € 28,538 million (2020: € 30,401 million) decreasedby € -1,863 million. This is driven by Airbus (€ -1,944 million),and mainly reﬂects the delivery of the last A380 aircraft and the
reduction in the widebodies inventory.
In 2021, wr ite-downs of inventories in the amount of€ -655 million (2020: € -950 million) are recognised in cost of
sales, whereas reversal of write-downs amounts to € 459 million

24.

(2020: € 24 million). At 31 December 2021, € 16,564 million ofwork in progress and € 4,428 million of ﬁnished goods and partsfor resale were carried at net realisable value.
Inventories recognised as an expense during the period amountto € 32,388 million (2020: € 32,985 million).

Provisions, Contingent Assets and Contingent Liabilities

Provisions — The determination of provisions, e.g. for onerous
contracts, programme-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 amountsof expenses to be taken into account.
31 December(In € million)

2021

2020

Provisions for pensions

7,072

9,980

Other provisions

8,209

10,563

Total

15,281

20,543

thereof non-current portion

10,771

14,298 (1)thereof current portion

4,510

6,245 (1)(1) Previous year allocation between non-current and current provisions has been restated.

As of 31 December 2021, provisions for pensions decreased mainly due to the change in ﬁnancial assumptions of € 1,453 million
reﬂecting the further strengthening of interest rates and increased inﬂation assumptions in Germany, France, Canada and the UK
and the increase in plan assets of € 1,341 million.
Other provisions decreased mainly due to the restructuring provision recorded in 2020 in response to the COVID-19 pandemic
and a decrease in provisions for onerous contracts due to the delivery of the last A380 aircraft, the utilisation and net presentationof the A400M programme losses against inventories and the reduction in the A220 programme.

40

Airbus / Financial Statements 2021

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

Movements in other provisions during the year were as follows:
Balance at
1 January Exchange
2021 differences(In € million)

Increase
Reclassification /from
Change inpassageconsolidatedof time Additions
group

Balance at
31 December
Used Released
2021

Onerous contracts

3,026

87

0

371

(271)

(782)

(182)

2,249

Outstanding costs

1,320

4

0

456

0

(345)

(59)

1,376

Aircraft financing risks

(1)

7

1

0

13

0

(2)

(2)

17

Obligation from services
and maintenanceagreements

553

0

9

16

0

(33)

(54)

491

Warranties

325

6

(1)

115

1

(58)

(16)

372

1,905

3

1

394

(264)

(1,023)

(247)

769

Personnel-related
provisions (2)Litigation and claims(3)

Asset retirement
Other risks and charges

Total

894

1

0

74

(5)

(86)

(150)

728

185

2

2

4

(1)

0

(41)

151

2,348

5

0

787

4

(481)

(607)

2,056

10,563

109

11

2,230

(536)

(2,810)(1,358)8,209(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 2021 mainly include
the delivery of the last A380 aircraft, the utilisation and netpresentation of the A400M programme losses against inventories
and the reduction in the A220 programme.

“Provisions, Contingent Assets and Contingent Liabilities” isnot disclosed if the Company concludes that disclosure canbe expected to prejudice seriously its position in a dispute withother parties.

Personnel-related provisions include restructuring provisions
and other personnel charges. For more details, see “– Note 30:
Personnel-Related Provisions”.

For other contingent liabilities, see “– Note 38: Litigation and
Claims” and “– Note 12: Revenue and Gross Margin” (mainly
A400M programme).

Contingent assets and contingent liabilities — The Company
is exposed to technical and commercial contingent obligations
due to the nature of its businesses. To mitigate this exposure,
the Company has subscribed a Global Aviation Insurance
Programme (“GAP”). Information required under IAS 37

Other commitments include contractual guarantees andperformance bonds to certain customers as well as commitments
for future capital expenditures and amounts which may bepayable to commercial intermediaries if future sales materialise.

25.

2

Other Financial Assets and Other Financial Liabilities

Other Financial Assets
31 December(In € million)

Positive fair values of derivative financial instruments

(1)

2021

2020

664

3,451

Others27

32

Total non-current other financial assets

691

3,483

Receivables from related companies

803

1,158

Positive fair values of derivative financial instruments

(1)

341

973

307

301

Total current other financial assets

1,451

2,432

Total

2,142

5,915

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

Airbus / Financial Statements 2021

41

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

Other Financial Liabilities
31 December(In € million)

2021

2020

Liabilities for derivative financial instruments (1)

2,640

1,834

European governments’ refundable advances (2)

3,730

3,712

192

111

Total non-current other financial liabilities

6,562

5,657

Liabilities for derivative financial instruments (1)

1,923

983

European governments’ refundable advances (2)

131

200

OthersLiabilities to related companies

180

130

Others298

456

Total current other financial liabilities

2,532

1,769

Total

9,094

7,426

2,532

1,769

thereof other financial liabilities due within one year

(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.

42

The total net fair value of derivative financial instruments
decreased by € -5,165 million to € -3,558 million (2020:€ 1,607 million) as a result of the strengthened US dollar versus
the euro associated with the mark to market valuation of thehedge portfolio.

In 2020, the Company signed amendments to the French andSpanish A350 RLI contracts, leading to a remeasurement of
the A350 RLI for an additional net amount of € 236 million in thethird quarter, using an equivalent estimated market rate at thedate of the amendments.

In 2021, the European governments’ refundable advances
decreased by € -51 million to € 3,861 million (2020: € 3,912 million).

The allocation of European governments’ refundable advances
between non-current and current presented in the Consolidated
Financial Statements ended 31 December 2021 is based on theapplicable contractual repayment dates.

Airbus / Financial Statements 2021

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

26.

Other Assets and Other Liabilities

Other Assets
31 December
2021

2020

Cost to fulfil a contract

301

282

Prepaid expenses

116

76

(In € million)

Others378

125

Total non-current other assets

795

483

Value added tax claims

1,183

1,025

Cost to fulfil a contract

499

557

Prepaid expenses

392

191

Others319

443

Total current other assets

2,393

2,216

Total

3,188

2,699

Non-current other assets include € 305 million of payments to be made to Airbus by suppliers after aircraft delivery and are recorded
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.

Other Liabilities
31 December(In € million)

2021

2020

Others583

436

Total non-current other liabilities

583

436

Tax liabilities (excluding income tax)

771

749

Others

2,761

2,411

Total current other liabilities

3,532

3,160

Total

4,115

3,596

3,532

3,160

thereof other liabilities due within one year27.

2

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 andEquipment”). Rental income from operating leases is recorded
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 of ownershipof the financed aircraft reside with a third party, the transaction
is characterised as either a finance lease or a loan. In such
instances, revenue from the sale of the aircraft are recorded
upon delivery, while financial interest is recorded over time
as financial income. The outstanding balance of principal isrecorded 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
a payment default or at the end of a lease agreement areclassified as inventories held for resale if there is no subsequent
lease agreement in force (see “– Note 23: Inventories”).

Airbus / Financial Statements 2021

43

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

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
the customer in the event that the customer fails to securesufficient funding when payment becomes due under the order.
Such commitments are not considered to be part of Gross
Customer Financing Exposure as (i) the financing is not in place,(ii) commitments may be transferred in full or part to third parties
prior to delivery, (iii) past experience suggests it is unlikely thatall 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 typicallycontain financial conditions, such as condition precedents,
which guaranteed parties must satisfy in order to benefit
therefrom;(ii) asset value guarantees are guarantees whereby Airbus
guarantees a portion of the value of an aircraft at a specificdate 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 estimated future
value of the aircraft, and its level is considered prudent incomparison to the estimated future value of each aircraft, and(ii) the exercise dates of outstanding asset value guarantees
are distributed through 2031.
As of 31 December 2021, the nominal value of asset value
guarantees considered as variable considerations under
IFRS 15 provided to beneﬁ ciaries amounts to € 381 million(2020: € 461 million), excluding € 9 million (2020: € 8 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 € 345 million(2020: € 403 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
other investment in sales ﬁnancing structured entities before
impairment. This Gross Customer Financing Exposure may differ
from the value of related assets on the Company’s Statementof Financial Position and related off-balance sheet contingent

44

Airbus / Financial Statements 2021

commitments, mainly because (i) assets are recorded incompliance with IFRS, but may relate to transactions that are
ﬁnanced on a limited recourse basis and (ii) the carrying amountof the assets on the Consolidated Statement of Financial Position
may have been adjusted for impairment losses.
Gross Customer Financing Exposure amounts to US$ 0.5 billion(€ 0.4 billion) (2020: US$ 0.6 billion (€ 0.5 billion)).
Net exposure is the difference between Gross Customer
Financing Exposure and the collateral value. Collateral value
is assessed 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 andfor repossession and transformation costs. The net exposure isprovided for by way of impairment losses and other provisions.
Impairment losses and provisions — For the purpose ofmeasuring an impairment loss, each transaction is tested
individually. Impairment losses relating to aircraft under operatinglease and second hand aircraft for resale (included in inventory)
are recognised for any excess of the aircraft’s carrying amountover the higher of the aircraft’s value in use and its fair valueless cost to sell. Finance leases and loans are measured at fairvalue, based on the present value of estimated future cash ﬂows
(including cash ﬂows expected to be derived from a sale of theaircraft). Under its provisioning policy for sales 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 that are
structured through structured entities, are generally collateralisedby the underlying aircraft. Additionally, the Company beneﬁts
from protective covenants and from security packages tailoredaccording 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 and facilitating selldowns of the aircraft ﬁnanced. An aircraft ﬁnancing structured
entity is typically funded on a non-recourse basis by a seniorlender and one or more providers of subordinated ﬁnancing. When
the Company acts as a lender to such structured entities, it may
take the role of the senior lender or the provider of subordinatedloan. The Company consolidates an aircraft ﬁnancing structured
entity if it is exposed to the structured entity’s variable returns
and has the ability to direct the relevant remarketing activities.
Otherwise, it recognises only its loan to the structured entity
under other long-term ﬁnancial assets. At 31 December 2021
the carrying amount of its loans from aircraft ﬁnancing amounts
to € 77 million (2020: € 224 million). This amount also represents
the Company’s maximum exposure to loss from its interest in
unconsolidated aircraft ﬁnancing structured entities.

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

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 2021 and 31 December 2020 are as follows:
Aircraft underoperating lease(In € million)

Finance leasereceivables

Not later than one year

35

Later than one year and not later than five years

43

36

Later than five years

80

24

31 December 2021

126

65

Aircraft underoperating lease

Finance leasereceivables

Not later than one year

61

Later than one year and not later than five years

19

12

Later than five years

00

31 December 202025

13

(In € million)

Customer Financing Cash Flows
Direct customer ﬁnancing cash ﬂows amount to € 28 million in 2021 (2020: € 124 million).

Customer Financing Exposure
The on-balance sheet assets relating to sales ﬁnancing, the off-balance sheet commitments and the related ﬁnancing exposure(not including asset value guarantees) as of 31 December 2021 and 2020 are as follows:
31 December 2021
Airbus(In € million)

Operating leases(1)

AirbusHelicopters

31 December 2020
Total

AirbusAirbusHelicopters

Total

105

13

118

30

13

43

Finance leases and loans

145

19

164

365

31

396

Inventories

11

0

11

10

0

10

Other investments

62

0

62

10

0

10

On-balance sheet customer financing

323

32

355

415

44

459

41

26

67

12

2

14

Gross Customer Financing Exposure

364

58

422

427

46

473

Collateral values

(282)

(58)

(340)

(241)

(38)

(279)

Net exposure

82

0

82

186

8

194

Off-balance sheet customer financing

Operating leases

(7)

0

(7)

(22)

0

(22)

Finance leases and loans

(53)

0

(53)

(151)

(8)

(159)

On-balance sheet commitments - inventories

(6)

0

(6)

(6)

0

(6)

Off-balance sheet commitments - provisions (2)

(16)

0

(16)

(7)

0

(7)

Asset impairments, fair value
adjustments and provisions

(82)

0

(82)

(186)

(8)

(194)

2

(1) For 2021 and 2020, depreciation amounts to € 1 million and € 8 million respectively and related accumulated depreciation is € 8 million and € 21 million respectively.
(2) See “– Note 24: Provisions, Contingent Assets and Contingent Liabilities”.

Airbus / Financial Statements 2021

45

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

2.6 Employees Costs and Beneﬁts
28.

Number of Employees
AirbusAirbusHelicopters

AirbusDefenceand Space

Consolidated
Airbus31 December 2021

73,56020,12632,809126,495

31 December 2020

78,48720,026

32,836

131,349

29.

Personnel Expenses(In € million)

2021

2020

Wages, salaries and social contributions

12,913

11,799Net periodic pension cost (1)

Total

356

749

13,26912,548(1) See “– Note 31: Post-Employment Benefits”.

30.

Personnel-Related Provisions

Several German companies provide life-time working account models, being employee beneﬁt plans with a promised return on
contributions or notional contributions that qualify as other long-term employee benefits under IAS 19. The employees’ periodical
contributions into their life-time working accounts result in corresponding personnel expenses in that period, recognised in otherpersonnel charges.
The decrease in Restructuring measures/ pre-retirement part-time work is mainly due to the restructuring provision recorded
in 2020 in response to the COVID-19 pandemic.
Increase
Reclassification /Balance atfromChange in
1 January Exchange passage
consolidated
2021 differencesof time Additionsgroup(In € million)

Restructuring measures /pre-retirement part-time work

1,263

2

0

52

(259)

(712)

(221)

125

642

1

1

342

(5)

(311)

(26)

644

1,905

3

1

394

(264) (1,023)

(247)

769

Other personnel charges

Total

Balance at
31 December
Used Released
2021

In September 2020, a restructuring provision was recognised in response to the COVID-19 pandemic under other provisions for
an amount of € 1.2 billion including mainly the cost of voluntary and compulsory measures taking into account management’s best
estimate of the impact of the working time adaptation and government support measures.
As of 31 December 2021 and 31 December 2020, the restructuring provision in response to the COVID-19 pandemic amounted
to € 0.1 billion and € 1.0 billion respectively. It reﬂects the utilisation of the restructuring provision for an amount of € 0.6 billion, therelease of € 0.2 billion and € 0.2 billion reclassiﬁed to liabilities to reﬂect the progress of the plan.

31.

Post-Employment Beneﬁts
31 December(In € million)

2021

2020

Provisions for retirement plans

6,240

8,790

832

1,190

7,072

9,980

Provisions for deferred compensation

Retirement plans and similar obligations

46

Airbus / Financial Statements 2021

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 deferred compensation
which is treated as a deﬁned beneﬁt post-employment plan.
France — The French pension system is operated on a“pay as you go” basis. Besides the basic pension from the
French social security system, each employee is entitled toreceive a complementary pension from deﬁned contribution
schemes AGIRC-ARRCO (Association pour le régime deretraite complémentaire des salariés and Association générale
des institutions 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.
Germany — The Company has a pension plan (P3) for executive
and non-executive employees in place. Under this plan, theemployer provides contributions for the services rendered by
the employees, which are dependent on their salaries in therespective service period. These contributions are converted into
components which become part of the accrued pension liability
at the end of the year. Total beneﬁts are calculated as a career
average over the entire period of service. Certain employees thatare not covered by this plan receive retirement indemnities basedon salary earned in the last 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
the date 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 theCompany transferred about half of the active population of the P3plan 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 not affected by this transfer.
Parts of the pension obligation in Germany are funded byassets invested in speciﬁc funding vehicles. Besides a relief
fund (Unterstützungskasse), the Company has implemented
a Contractual Trust Arrangement. The Contractual Trust
Arrangement structure is that of a bilateral trust arrangement.
Assets that are transferred 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 notprotected by the pension guarantee association or PensionsSicherungs Verein in case of an insolvency of the subsidiaries
concerned. Some portions of the obligation must be covered
with securities in the same amount, while other portions must
be covered by 115%.
United Kingdom — The Company UK Pension Scheme (“theScheme”) was implemented by Airbus Defence and Space Ltd.,
Stevenage (UK) as the principal employer. This plan comprises
all eligible employees of Airbus Defence and Space Ltd. as well

as all personnel, who were recruited by one of the Company
subsidiaries located in the UK and participating in the scheme.
The major part of the obligation is funded by scheme assets due
to contributions of the participating 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 the Pensions Act part 3 2004, which is
to have sufﬁcient and appropriate assets to cover the Scheme’s
obligations. Since 1 November 2013, this plan is generally closed
for joiners, who participate in a separate deﬁned contribution
plan.
Moreover, the Company participates in the UK in several funded
trustee-administered pension plans for both executive and nonexecutive employees with BAE Systems being the principal
employer. The Company’s most significant investments interms of employees participating in these BAE Systems UK
pension plans is Airbus Operations Ltd. Participating Airbus
Operations Ltd. employees have continued to remain membersin the BAE Systems UK pension plans due to the UK pension
agreement between the Company and BAE Systems and achange in the UK pensions legislation enacted in April 2006.
For the most signiﬁcant of these BAE Systems Pension Schemes,
the Main Scheme, BAE Systems, the Company and the 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 theprincipal 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 different UK pension plans in which theCompany investments participate are currently underfunded.
Airbus Operations Ltd. (for its section of the Main Scheme)
and BAE Systems (for the other schemes) have agreed
with the trustees various measures designed to make good
the underfunding. These include (i) regular contribution payments
for active employees well above such which would prevail for
funded plans and (ii) extra employers’ contributions.

2

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 thatits obligation is in principle limited to that related to its section.
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.

Airbus / Financial Statements 2021

47

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

Actuarial Risks for the Company
The deﬁned beneﬁt obligation (“DBO”) exposes the Company toactuarial risks, including mainly the following ones:

development of market values of those corporate bonds includedin plan assets. Generally, the pension obligation is sensitive to
movements in the interest rate leading to volatile results in thevaluation.

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.

Inﬂ ation 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.

Interest rate risk — The level of the DBO is significantly
impacted by the applied discount rate. The low interest rates,
particular in the euro-denominated market environment, leadto a relatively high net pension liability. If the decline in returnsof corporate bonds continues, the DBO will further increase in
future periods, which might only be offset partially by the positive

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
2021 are as follows:
Pension plans inGermany
2021

2020

Discount rate

1.1

Rate of compensation increase

2.8

Rate of pension increase
Inflation rate

(Rate in %)France
2020

0.5

1.0

0.4

2.8

2.5

2.5

1.7

1.4

1.6

1.5

3.0

2.6

1.7

1.4

1.6

1.5

3.2

2.7

Rate of pension increase — Rates for pension payment
increases are derived from the respective inﬂation rate for theplan.

Airbus / Financial Statements 2021

UK

2021

Discount rate — For Germany and France, the Company derives
the discount rate used to determine the DBO from yields on highquality corporate bonds with an AA rating. The determinationof the discount rate is based on the iBoxx € Corporates AA
bond data and uses the granularity of single bond data in orderto receive more market information from the given bond index.
The discount rate for the estimated duration of the respective
pension plan is then extrapolated along the yield curve. In the UK,
it is determined with reference to the full yield curve of AA-rated
sterling-denominated corporate bonds of varying maturities. The
salary increase rates are based on long-term expectations of therespective employers, derived from the assumed inﬂation rate
and adjusted by promotional or productivity scales.

48

Participationin BAE Systems
Pension Scheme
in the UK

2021

2020

2021

2.0

1.5

3.3

2.6

Canada

2020

2021

2020

1.9

1.4

3.3

2.8

3.1

2.6

2.9

2.8

3.1

2.7

2.0

1.8

3.2

2.8

2.0

1.8

Inﬂation rates — Inﬂation rate for German and French planscorresponds to the expected long-term increase in cost of living.
In the UK, the inﬂation assumptions are derived by reference
to the difference between the yields on index-linked and ﬁxedinterest long-term government bonds.
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
to 30%, to align with actual observation.
For the UK schemes, the Self-Administered Pensions S2
mortality tables based on year of birth (as published by theInstitute of Actuaries) is used in conjunction with the results ofan investigation into the actual mortality experience of scheme
members. In France, Institute for French Statistics (“INSEE”)
tables are applied.

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

Provision for retirement and deferred compensation plans
The development of the provision for retirement and deferred compensation plans is set out below:
DBO

Plan assets

Pensionplans
of theCompany

Participation in
BAE Systems
Pension Scheme
in the UK

Total

Pensionplans
of theCompany

Participation in
BAE Systems
Pension Scheme
in the UK

Total

Total
provisions

Balance at 1 January 2020

17,025Service cost(including past service cost)

3,991

21,016(9,320)(3,343)(12,663)8,353

Interest cost and income

590

72

662

0

0

0

662

168

76

244

(95)

(62)

(157)

87

(69)

(3)

(72)

0

0

0

(72)

changes in financial assumptions

1,645

578

2,223

0

0

0

2,223

changes in experience adjustments

(106)

27

(79)

0

0

0

(79)

0

0

0

(420)

(117)

(537)

(537)

11

0

11

(45)

0

(45)

(34)

(In € million)

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

plan assets
Changes in consolidation, transfersand others
Benefits paid

(450)

(153)

(603)

147

153

300

(303)

Contributions by employer
and other plan participants

80

2

82

(256)

(83)

(339)

(257)

Foreign currency translation
adjustments

(116)

(220)

(336)

93

180

273

(63)

(9,896)(3,272)(13,168)

9,980

Balance at 31 December 2020

18,7784,370

23,148Service cost(including past service cost)

225

66

291

0

0

0

291

Interest cost and income

118

61

179

(69)

(45)

(114)

65

48

(6)

42

0

0

0

42

changes in financial assumptions(1,378)(75)(1,453)000(1,453)changes in experience adjustments

95

44

139

0

0

0

139

plan assets

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

0

0

0

(954)

(387)

(1,341)(1,341)

Changes in consolidation,transfers and others

(12)

0

(12)

(14)

0

(14)

(26)

Benefits paid

(455)

(167)

(622)

156

167

323

(299)

Contributions by employer
and other plan participants

117

1

118

(442)

(97)

(539)

(421)

304

467

(134)

(238)

(372)

95

4,598 22,297(11,353)(3,872) (15,225)

7,072

Foreign currency translation
adjustments

Balance at 31 December 2021

163

17,699In the ﬁgures shown in the table, amounts of € 2,503 million and€ 1,682 million are included for the deﬁned beneﬁt obligation andplan assets for deferred compensation plans in Germany (2020:€ 2,625 million and € 1,435 million).
The past service cost included in the service cost amounts to€ -228 million and € 106 million as of 31 December 2021 and 2020,
respectively. The employer contributions amount to € 533 million

2and € 6 million for other plan participants as of 31 December
2021 (2020: € 331 million and € 8 million respectively).
Additionally, the Company considers liabilities for lump sum
payments (one-off payment or lump sum instalments) under
the German P3 and APP pension arrangements in the total
amount of € 172 million and € 150 million as of 31 December
2021 and 2020, respectively.

Airbus / Financial Statements 2021

49

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

The funding of the plans is as follows:
31 December
2021(In € million)

DBO

2020
Plan assets

DBO

Plan assets

Unfunded pension plans

1,406

0

1,716

0

Funded pension plans (partial)

20,891(15,225)

21,432(13,168)

Total

22,297(15,225)

23,148(13,168)

As of 31 December 2021, provisions for pensions decreased
mainly due to the change in ﬁnancial assumptions of € 1,453 million
reﬂecting the further strengthening of interest rates and increased
inﬂation assumptions in Germany, France, Canada and the UK
and the increase in plan assets of € 1,341 million.
In 2021, contributions for retirement and deferred compensationplans amount to € 533 million. This consists of:– payments made to the pension and deferred compensationplans of the Company of € 667 million (2020: € 250 million),
mainly relating to the Contractual Trust Arrangement inGermany of € 431 million (2020: € 175 million) as well as to
the Company UK scheme € 224 million (2020: € 55 million);– withdrawals from the Contractual Trust Arrangement inGermany of € -230 million (2020: € 0 million);– payments made to the participation in BAE Systems Pension
Scheme in the UK of € 96 million (2020: € 81 million).
Contributions of approximately € 514 million are expected to bemade in 2022.
The weighted average duration of the DBO for retirement plansand deferred compensation is 18 years at 31 December 2021
(31 December 2020: 19 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 forthe most signiﬁcant plans is as follows:
ActiveDeferredPensioner

Germany

51%

11%

38%

France

99%

0%

1%

UK

65%

17%

18%

Participation in BAE System Pension Scheme (Main Scheme)

41%

17%

42%

Canada

89%

1%

10%

Pension Obligations by Countries and Type of Plans
The split of the present value of DBO for retirement plans and deferred compensation for the most signiﬁcant plans is as follows:
Present value of DBO

Germany

50

Plan assets

Retirement
plans

DeferredCompensation
plans

Retirement
plans

DeferredCompensation
plans

81%

19%

81%

19%

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%

Airbus / Financial Statements 2021

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

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 2021:
Change in actuarial assumptions

Impact on DBO
Change at 31 December

Present value of the DBO
Discount rate
Rate of compensation increase
Rate of pension increase

2021

2020

22,297

23,148

Increase by 0.5%-point(1,899)(2,041)

Decrease by 0.5%-point

2,187

2,347

Increase by 0.25%-point

168

176

Decrease by 0.25%-point

(160)

(169)

Increase by 0.25%-point

438

449

Decrease by 0.25%-point

(420)

(431)

Increase by one year

654

718

Life expectancy

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

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

Plan Assets Allocation
The fair value of the plan assets for retirement plans and deferred compensation can be allocated to the following classes:
2021

2020

QuotedpricesUnquoted
prices

Total

QuotedpricesUnquoted
prices

Total

1,539

0

1,539

1,197

0

1,197

Rest of the world
Emerging markets

408

0

408

356

0

356

561

0

561

503

0

503

2,896

693

3,589

2,820

194

3,014

0

0

Corporates

3,125

283

3,408

3,001

271

3,272

Governments

2,393

0

2,393

2,332

0

2,332

328

0

328

295

0

295

(In € million)

Equity securities
EuropeGlobal
Bonds

Pooled investments vehicles
Commodities

0

0

0

0

0

0

Hedge funds

0

459

459

0

398

398

Derivatives

0

(71)

(71)

0

(129)

(129)

Property

0

723

723

0

464

464

Cash and money market funds
OthersBalance at 31 December

344

263

607

3

106

109

0

1,281

1,281

0

1,357

1,357

11,594

3,631

15,225

10,507

2,661

13,168The majority of funded plans apply broadly an asset-liability
matching framework. The strategic asset allocation of theplans takes 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 20212

consists of ﬁxed income and equity instruments, although theCompany also invests in property, commodities and hedge
funds. The Company reassesses the characteristics of thepension obligations from time to time or as required by theapplicable regulation or governance framework. This typicallytriggers a subsequent review of the strategic asset allocation.

Airbus / Financial Statements 2021

51

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

Provisions by Countries
The amount recorded as provision for retirement and deferred compensation plans can be allocated to the countries as follows:
Pension plans of the Company
UK

CanadaParticipation in BAE
Systems Pension
Scheme in the UK

1,941

1,858

570

4,598

22,297

21

1,858

411

3,872

15,225

4,267

1,920

0

159

726

7,072

DBO

14,317

2,274

1,646

541

4,370

23,148Plan assets

8,179

22

1,358

337

3,272

13,168

Recognised at
31 December 2020

6,138

2,252

288

204

1,098

9,980

Germany

FranceDBO

13,330Plan assets

9,063

Recognised at
31 December 2021

(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 2021 amounted to € 983 million (2020: € 813 million).

32.

Share-based Payment

Share-based compensation — Since 2016, the Company
operates a Performance Units and Performance SharesPlan. 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 the following
notes.
Since 2018, the Company operates also exceptional grantsof Performance and Restricted Units as well as Performanceand Restricted 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 sharebased payment plans under IFRS 2. Accounting principles andmethodology 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. Changesof the fair value are recognised as personnel expenses of theperiod, leading to a remeasurement of the provision. The fairvalue of Performance Units is re-measured at each closing dateas 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 share taking
into account the extent to which the employees have renderedservice to date. The compensation expense is accounting forover the vesting period of each LTIP equity-settled plans.

52

Airbus / Financial Statements 2021

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, the Employee
Share Ownership Plan (“ESOP”) is an additional equity-settled
share-based payment plan. Under this plan, the Company offers
its employees Airbus SE shares at fair value matched with anumber of free shares based on a determining ratio. The fairvalue of shares provided is reﬂected as personnel expenses
in the Company’s Consolidated Income Statement with acorresponding increase in equity.

32.1

LTIP

The Company hedges the share price risk inherent in the cashsettled 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 AGM.
In 2021, compensation expense for LTIPs (incl. Equity Pool)
including the effect of the equity swaps amounted to € 36 million(2020: € -2 million), among which € 23 million for cash-settledplans (2020: € -9 million) and € 13 million for equity-settled plans(2020: € 7 million).
As of 31 December 2021, provisions of € 55 million (2020:€ 59 million) relating to LTIP units (cash-settled) have beenaccounted for.

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

The lifetime of the Performance Units as well as Performance
Shares is contractually ﬁxed (see the description of the respective
tranche in the following table). For the units, the measurement isnext to other market data, mainly affected by the share price asof the end of the reporting period (€ 112.36 as of 31 December2021) and the lifetime of the units.

The fair value of units and shares granted in the frame of the LTIP 2021 plan is as follows:
Expected vesting date
Fair value of Performance Shares(In € per unit / share granted)

May 2025 - Performance Shares

89.83

The principal characteristics of the LTIPs as at 31 December 2021 are summarised below:

Grant date (1)LTIP 2016 (7)LTIP 2017 (8)LTIP 2018 (9)LTIP 2019

LTIP 2020

LTIP 2021

25 October 2016

30 October 201730 October 2018

29 October 201928 October 2020

15 December 2021

Performance Units and Performance Shares Plan
Units

Units

SharesUnits

SharesUnits

SharesUnits

SharesUnits

SharesSharesNumber of units
granted (2)615,792

621,198

421,638

425,702278,376

281,181247,508

247,508

420,004

420,004

520,870

Fair value
at grant date (3)45.13/44.71

45.15

74.83/71.69

76.76

84.09/83.28

85.01

55.49

89.83

Fair Value of
Performance
Units as of
31 December
2021 (3)85.88-

88.76/85.41-

87.10/84.17-

84.64/81.41-

75.49/72.50--

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

1,762

1,762

1,898

1,898

6,964

6,964

4,343

4,252

1,224

1,224

837

Number of units
outstanding (5)0097,9020

133,691

134,976

239,782

239,691

413,789413,789

521,707

Total numberof eligible
beneficiaries
Vesting
conditions

1,671

1,601

112.83/108.44 112.92 51.04/46.98

1,626

1,576

1,602

1,770

The Performance and Restricted Units and Performance Shares will vest if the participant is still employed by a companyof the Company at the respective vesting dates. Performance Units and Shares will vest upon achievement of mid-term businessperformance. Vesting schedule is made up of two payments over two years.

Share priceper unit limited
at vesting dates
to (6)€ 105.34

Vesting dates

50% in May
2020
and 50%expectedin May2021

Number ofvested units

422,866-€ 147.62-

in June2020

50% each
expected:in June2021
in June2022

100%
in May2021

429,531

96,911

194,975100%€ 213.88-

50% each
expected:in June100%
2022
expectedin Junein May
2023
2022
0

0

€ 244.12
50% each
expected:in June2023
in June2024
0-€ 136.08-

50% each
expected:
100%
in June100%
expected2024
expectedin Mayin Junein May
2023
2025
2024
0

0

0

2

-

100%
expectedin May2025
0(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 candecide 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.
(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 originally granted,
each valued with the respective reference share price of € 52.67 (for LTIP 2016), € 73.81 (for LTIP 2017), € 106.94 (for LTIP 2018), € 122.06 (for LTIP 2019) and € 68.04 (for LTIP 2020).
(7) Based on performance achievement of 75% for Performance Units under LTIP 2016.
(8) Based on performance achievement of 50% for Performance Units under LTIP 2017.
(9) Based on performance achievement of 50% for Performance Units under LTIP 2018.

Additionally, the Board of Directors approved in 2021 the exceptional grant of 1,354 Restricted & Performance Units and 10,725
Restricted & Performance Shares under the Equity Pool with an average fair value of € 102.87. 2,017 Units and 3,758 Shares havevested in 2021. As of 31 December 2021, the number of units outstanding is 6,086 Units and 13,247 Shares.

Airbus / Financial Statements 2021

53

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

32.2

ESOP

In 2021 and 2020, the Board of Directors approved a new ESOP
scheme. Eligible employees were able to purchase a ﬁ xed
number of previously unissued shares at fair market value (5,15, 30, 50 or 100 shares in 2021, 5, 10, 15, 30 or 100 shares in2020). The Company matched each ﬁxed number of shares witha number of the Company free shares based on a determinedratio (4, 7, 10, 13 and 25 free shares, respectively in 2021, versus
4, 6, 7, 10 and 25 free shares, respectively in 2020). During acustody period of at least one year, employees are restricted fromselling the shares, but have the right to receive all dividends paid.
Employees who directly purchased the Airbus SE shares have, in
addition, the ability to vote at the Annual Shareholder Meetings.
The subscription price was equal to the closing price at the Paris
stock exchange on 17 February 2021 (2020: 12 February 2020)

and amounted to € 93.90 (2020: € 136.60). Investing through amutual fund led to a price which corresponds to the average
price at the Paris stock exchange during the 20 trading days
immediately preceding 17 February 2021 (2020: 12 February2020), resulting in a price of € 89.52 (2020: € 136.00).
In 2021, the Company issued and sold 1,442,645 ordinary shares(2020: 671,640) with a nominal value of € 1.00 each.
In 2021, the Company issued and distributed 491,775 matchingordinary shares (2020: 304,515) with a nominal value of € 1.00
each. Compensation expense (excluding social security
contributions) of € 49 million (2020: € 34 million) was recognisedin connection with ESOP in 2021.

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:(In € million)

2021

2020

Executive Committee, including Executive Board Member
Salaries and other short-term benefits (including bonuses)

19.5

16.1

Post-employment benefit costs

5.2

4.8

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

3.4

1.0

Termination benefits (1)6.1

0Other benefits

0.4

0.5

Social charges (2)

4.6

4.7

2.0

2.2

41.2

29.3

Non-Executive Board Members
Short-term benefits (including social charges)

Total expense recognised(1) 2021 Termination benefits include the termination benefits paid in 2021 based on last information available and applicable law.
(2) 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 2021 for
Executive Committee Members based on estimated performance achievement at year-end was € 11.4 million (2020: € 7.7 million).
In order to support the Company’s target of reducing CO2 emissions by 40% 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 andall executives.

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 € 25.6 million at 31 December 2021 (2020: € 32.8 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.

54

Airbus / Financial Statements 2021

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

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.
In 2021, the Members of the Executive Committee were granted 66,575 Performance Shares (2020: 50,814 Performance Sharesand 50,814 Performance Units). For LTIP 2021, the respective fair value of these Shares at grant date was € 6.5 million (2020:€ 7.6 million for both Performance Shares and Performance Units). As of 31 December 2021, provisions of € 5.4 million (2020:€ 5.0 million) relating to LTIP have been recognised. The total number of outstanding Performance Units and Performance Shares
granted to the current Members of the Executive Committee amounted to 91,180 and 152,967 respectively at 31 December 2021
(2020: 133,966 Performance Units and 133,966 Performance Shares).

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 extensionof 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 theCompany without cause, pro rata being based on the presence in the Company during performance periods. The vesting of past
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.
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.

33.2

Remuneration – CEO2

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

2021

2020

Base salary

1,350,000

1,350,000

Annual variable pay

2,247,750

1,357,262

Post-employment benefit costs

1,138,794

1,179,332

822,906

206,337

Share-based remuneration (“LTIP award”)
Termination benefits
Other benefits
Social charges (2)

(1)

0

0

32,47933,7901,089,385

1,102,840(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 depends on the applicable regulation to the CEO. In France, social charges comprise benefits accrued through mandatory collective and state plans such aspension, 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
the previous year’s estimation and actual pay-out in the current year.

Airbus / Financial Statements 2021

55

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

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 2021, the deﬁned beneﬁt obligation related to the frozen deﬁned beneﬁt commitment amounts to € 9,048,433(€ 9,423,777 in 2020). This obligation has been accrued in the 2021 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.
For the ﬁscal year 2021, the cost related to the CEO’s pension rights accrued under Company’s plans during the year represented
an expense of € 1,138,794 (versus an expense of € 1,179,332 in 2020).
The annual cost of pension rights accrued under applicable mandatory collective and state pension plans are accounted for amongsocial charges

Share-based Remuneration
The table below gives an overview of the interests of the CEO, under the various LTIPs of the Company:
LTIP 2016 (1)LTIP 2017 (1)LTIP 2018 (1)LTIP 2019

LTIP 2020

LTIP 2021

11,392

8,808

8,416

11,06019,84012,121

Revaluation

75%

50%

50%

100%

100%

100%

Performance Units and Shares revalued

8,544

4,404

4,208

11,06019,84012,121

Granted Date
Performance Units and Shares

Vested in 2021
in cash

2,136

1,101

0

0

0

0

0

2,202

0

0

0

0

in cash

0

1,101

2,104

5,530

9,920

0

in shares

0

0

2,104

5,530

9,920

12,121

May 2024

May 2025

in shares
Outstanding 2021

Vesting scheduleCash-settled units
Equity-settled units

For vesting dates, see “– Note 32.1: LTIP”
May 2020

May 2021

May 2022

May 2023(1) 2016 to 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 2021, provisions of € 1,188,050 (2020: € 919,556) relating to Performance Units have been recognised.
The pay-out from vested cash-settled LTIP in 2021 was € 324,504 (2020: € 401,261) 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 valueof other beneﬁts provided to the CEO in 2021 amounted to € 32,479 (2020: € 33,790).
The Company has not provided any loans to, advances to and guarantees on behalf of the CEO.

56

Airbus / Financial Statements 2021

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:
2021

2020

Fixum (1)AttendanceFees (2)

Total

René Obermann (3)210,000

90,000300,000

Victor Chu

100,000

43,000143,000(In €)

AttendanceFees (2)

Total

117,738

76,250193,988

100,000

78,000178,000

Fixum (1)Non-Executive Board Members(4)

130,000

67,500

197,500

127,087

90,000217,087

Ralph D. Crosby Jr.

100,000

61,000161,000

100,000

83,000183,000

Lord Drayson

120,000

49,500169,500

120,000

80,000200,000

Jean-Pierre Clamadieu

Mark Dunkerley(5)100,000

66,000166,000

70,87948,000118,879

Stephan Gemkow (5)100,000

63,000163,000

70,87958,000128,879

Catherine Guillouard

130,000

67,500

197,500

130,000

93,000223,000

María Amparo Moraleda Martínez

130,000

54,500184,500

130,000

85,000215,000

Claudia Nemat

100,000

56,500156,500

100,000

80,000180,000

Carlos Tavares

80,00045,000125,000

80,00070,000150,000---

61,73135,00096,731Former Non-Executive Board Members
Denis Ranque (6)Hermann-Josef Lamberti

Total

(7)

-

-

-

35,27435,00070,2741,300,000

663,500

1,963,500

1,243,588

911,250

2,154,838(1) Fixum includes a base fee for Board Membership and Committee membership within the Audit Committee, the Remuneration, Nomination and Governance Committee (“RNGC”)
and/or the Ethics, Compliance and Sustainability Committee (“ECSC”) as the case may be. The fixum for the year 2021 was paid 50% in January 2021 and 50% in July 2021.
The fixum for the year 2020 was paid 50% in January 2020 and 50% in July 2020.
(2) 2021 attendance fees include the Board attendance fees and the fees in relation to Audit Committee, RNGC and ECSC meetings. The Board attendance fees related to the firstsemester 2021 were paid in July 2021, those related to the second semester 2021 were paid in January 2022. The Committees’ attendance fees related to full year 2021 were
paid in January 2022.
(3) Chairman of the Board of Directors since 16 April 2020. Member of the Audit Committee until 16 April 2020. Member of the former Ethics & Compliance Committee between
30 July 2019 and 16 April 2020. As a reminder, René Obermann waived half of his 2020 remuneration (including fixum and attendance fees as Chairman of the Board).
(4) Member of the former Ethics & Compliance Committee until 16 April 2020. Chair of the ECSC since then.
(5) Member of the Board of Directors and of the Audit Committee since 16 April 2020.
(6) Chairman of the Board of Directors and of the former Ethics & Compliance Committee until 16 April 2020.
(7) Member of the Board of Directors and of the Audit Committee until 16 April 2020.

Airbus / Financial Statements 2021

257

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
the number of shares issued and fully paid:(In number of shares)

2021

2020

Issued at 1 January784,149,270

783,173,115

1,934,420

976,155

Issued for ESOP
Issued for convertible bondIssued at 31 December
Treasury shares

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 € 9,466 million (2020:€ 6,445 million) representing an increase of € +3,021 million. Thisis due to a net income for the period of € +4,213 million and adecrease in other comprehensive income, principally related
to the mark to market revaluation of the hedge portfolio of€ -3,710 million partly offset by a change in actuarial gains andlosses of € +2,363 million.
Capital stock comprises the nominal amount of shares
outstanding. The addition to capital stock represents thecontribution for exercised options by employees of € 1,934,420(2020: € 976,155) in compliance with the implemented ESOPs.
Share premium mainly results from contributions in kind in
the course of the creation of the Company, cash contributions
from the Company’s initial public offering, capital increases andreductions due to the issuance and cancellation of shares.
Retained earnings include mainly the proﬁt for the period and thechanges in other comprehensive income from remeasurementsof the deﬁned beneﬁt pension plans net of tax which amounts
to € +2,363 million in 2021 (2020: € -1,268 million).
On 23 March 2020, the Company has decided the withdrawalof 2019 dividend proposal with cash value of € 1.4 billion in
response to the COVID-19 pandemic (see “– Note 2: Impact of the
COVID-19 pandemic”). For the ﬁscal year 2021, the Company’s
Board of Directors proposes a cash distribution payment of€ 1.50 per share.
Treasury shares represent the amount paid or payable for own
shares held in treasury. During 2021, the number of treasury
stock held by the Company increased to 454,735 compared

34.2

0

0

786,083,690

784,149,270(454,735)(432,875)

785,628,955

783,716,395

to 432,875 as of 31 December 2020, mainly due to the sharebuybacks partly offset by vested shares in 2021 under LTIP 2017(see “– Note 32: Share-based Payment”). No shares were soldback to the market nor cancelled (2020: 0 shares).
On 14 April 2021, the AGM of the Company authorised the Boardof Directors, for a period expiring at the AGM to be held in 2022,
to issue shares and to grant rights to subscribe for shares in the
Company’s share capital for the purpose of:– ESOPs and share-related LTIPs, provided that such powers
shall be limited to an aggregate of 0.14% of the Company’s
authorised share capital (see “– Note 32: Share-based
Payment”);– funding the Company and its subsidiaries, provided thatsuch powers shall be limited to an aggregate of 0.3% of
the Company’s authorised share capital (see “– Note 36.3:
Financing Liabilities”).
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.
Also on 14 April 2021, the AGM authorised th e Board of
Directors for an 18-month 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 ofthe price 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.
Furthermore, the AGM authorised the Board of Directors
to determine 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 € 20 million as of 31 December 2021
(2020: € 11 million). These NCI do not have a material interest in the Company’s activities and cash ﬂows.

58

Airbus / Financial Statements 2021

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

35.

Capital Management

The Company seeks to maintain a strong ﬁnancial proﬁle to safeguard its going concern, ﬁnancial ﬂexibility as well as shareholders’,
credit investors’ and other stakeholders’ conﬁdence in the Company. Consequently, operating liquidity is of great 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 factors 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.
Rating agency

Long-term rating

Outlook

Short-term rating

A

Negative

A-1

A2

Negative

P1

BBB+

StableF1Standard and Poor’s
Moody’s Investors Services
Fitch Rating (unsolicited)

The stand-alone rating reﬂects the Company’s strong backlog
providing revenue visibility, leading market position, operating
performance, strong liquidity and solid balance sheet. It also
reﬂects the Company’s reaction to the COVID-19 pandemic,
including the adaptation of the production rate to meet customer
demand, cost reductions and cash containment measures, aswell as the uncertainties related to the length of the outbreak
and the recovery pattern of demand for aircrafts post outbreak.
Finally, it reﬂ ects the management’s focus on programmes
execution, proﬁtability and cash generation improvement.
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 to longterm hedging and to strengthen the Company’s position as aﬁnancially sound counterparty for its customers and suppliers.
A ﬁ ve year plan for rating and a value creation ambition isconstructed annually, and is composed of (i) EBIT and (ii) Free
Cash Flow, which is deﬁned as Cash provided by operating

36.

activities and Cash used for investing activities less Change of
securities, Contribution to plan assets for pensions, realised
Treasury swaps and bank activities.
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 generally satisﬁes its obligations arising from
ESOPs and Share Incentive Plans (“SIPs”) by issuing new shares.
In order to avoid any dilution of its current shareholders outof LTIPs, the Company performs share buybacks to meet its
obligations to its employees, following the decisions of the Boardof Directors and approval of the AGM. Apart from this purpose,
the Company generally does not trade with treasury shares.
The Company complies with the capital requirements underapplicable law and its Articles of Association.

2

Net Cash

The net cash position provides ﬁnancial ﬂexibility to fund the Company’s operations, to react to business needs and risk proﬁleand to return capital to the shareholders.
31 December(In € million)

2021

2020

Cash and cash equivalents

14,572

14,439Current securities

1,317

1,618

Non-current securities

6,794

5,350

Gross cash position

22,683

21,407

Short-term financing liabilities(1,946)(3,013)Long-term financing liabilities(13,094)(14,082)

7,643

4,312

Total

Airbus / Financial Statements 2021

59

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

The net cash position on 31 December 2021 amounted to€ 7,643 million (2020: € 4,312 million), with a gross cash positionof € 22,683 million (2020: € 21,407 million).
Derivative instruments recognised on the Company’s Statementof Financial Position consist of (i) instruments that are enteredinto as hedges of the Company’s operating activities or interest
result, and (ii) embedded foreign currency derivatives that arise

36.1

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

Cash and Cash Equivalents

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

2021

Bank account and petty cash

1,964

4,173

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

12,075

9,654

Short-term securities (at fair value through OCI)
OthersTotal 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 € +0.2 billion
from € 14.4 billion at 31 December 2020 to € 14.6 billion at
31 December 2021 and they include payments received inadvance from certain customers.
The main variations are as follows:
Cash provided by operating activities amounted to € +4.6 billion
in 2021, mainly driven by a proﬁt translated into cash partly
offset by provision consumption related to the restructuring plan,a positive impact from working capital which mainly reﬂects
the delivery of the last A380 aircraft and the reduction in the
widebodies inventory largely offset by a negative impact fromcontract assets and contract liabilities. In addition, it includes thenet payment made to suppliers in anticipation and the negative
impact due to the expiry of certain agreements reached with
suppliers relating to payment terms.
Cash used for investing activities amounted to € -2.7 billion, mainly
reﬂecting capital expenditures and securities. The acquisition ofreal estate assets in the UK has negatively impacted cash used
for investing activities, and also negatively impacted cash used
for ﬁnancing activities relating to the repayment of the existing
lease liabilities.
Cash used for ﬁnancing activities amounted to € -2.2 billion andreﬂects the pre-payment of a US$ 1 billion bond issued on 9 April
2013 and the repayment of the exchangeable bonds convertible
into Dassault Aviation shares for an amount of € 1.0 billion.
Similar to previous years, the Company has supported its
suppliers concerning supply chain ﬁnancing arrangements.

36.2

Securities

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

60

Airbus / Financial Statements 2021

2020

533

512

0

100

14,572

14,439The Company’s securities portfolio amounts to € 8,111 million and€ 6,968 million as of 31 December 2021 and 2020, respectively.
The security portfolio contains a non-current portion of€ 6,794 million (2020: € 5,350 million), and a current portion of€ 1,317 million (2020: € 1,618 million).
Included in the securities portfolio as of 31 December 2021 and2020, respectively, are corporate and government bonds bearing
either ﬁxed rate coupons (€ 7,866 million nominal value; 2020:€ 6,714 million) or ﬂoating rate coupons (€ 103 million nominal
value; 2020: € 108 million), and foreign currency funds of ﬁxed
income funds (€ 2 million fair value; 2020: € 2 million).
When the Company enter s 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 2021, securities for an
amount of € 0 million were pledged as collateral for borrowings
from banks (2020: € 99 million).

36.3

Financing Liabilities

Financing liabilities comprise obligations towards ﬁnancial
institutions, issued corporate bonds, deposits made by customersof Airbus Bank, borrowings received from joint ventures andother parties as well as ﬁnance lease liabilities. Financing liabilities
are recorded initially at the fair value of the proceeds received, netof transaction costs incurred. Subsequently, ﬁnancing liabilities
are measured at amortised cost, using the effective interest rate
method with any difference between proceeds (net of transaction
costs) and redemption amount being recognised in total ﬁnanceincome (cost) over the period of the ﬁnancing liability.
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)

2021

2020

Bonds and commercial papers

11,061

12,032

Liabilities to financial institutions

467

418

Loans

75

94

Lease liabilities

1,491

1,538

13,094

14,082

Bonds and commercial papers

0

1,075

Liabilities to financial institutions

26

111

Total long-term financing liabilities

Loans

96

94

Lease liabilities

245

260

Others (1)

1,579

1,473

Total short term financing liabilities

1,946

3,013

15,04017,095Total(1) Included in “others” are financing liabilities to joint ventures.

Long-term financing liabilities, mainly comprising of bonds andlease liabilities, decreased by € -988 million to € 13,094 million(2020: € 14,082 million), mainly due to pre-payment of a
US$ 1 billion bond issued on 9 April 2013 in the US institutional
market with an original maturity of ten years.
Short-term financing liabilities decreased by € -1,067 million
to € 1,946 million (2020: € 3,013 million), mainly due to therepayment of the exchangeable bonds to be convertible into
Dassault Aviation shares issued on 14 June 2016 for an amountof € 1.0 billion.

Prior to 2021, the Company issued several euro-denominatedbonds under its EMTN programme and three stand-alone US
dollar-denominated bonds on the US institutional market under
Rule 144A.
The Company can issue commercial papers under its € 11 billion
Negotiable European Commercial Paper (“NEuCP”) programme,its € 4 billion Euro Commercial Paper (“ECP”) programme andits $ 3 billion US Commercial Paper programme.
As of 31 December 2021, there were no outstanding
amounts under any of its commercial paper programmes.

2

Airbus / Financial Statements 2021

61

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)

2021

2020

US$ 1,000

0

EMTN 10 years€ 1,000

EMTN 15 years

Coupon Effective
Issuance or interest interest
date
rate
rate

Maturity
date

Additional features845

Apr 2013

2.70%

2.77%

Apr 2023

Interest rate swapped
into 3M Libor +0.68%

1,043

1,047

Apr 2014

2.38%

2.42%

Apr 2024

Interest rate swapped
into 3M Euribor +1.40%

€ 500

525

571

Oct 2014

2.12%

2.21%

Oct 2029

Interest rate swapped
into 3M Euribor +0.84%

EMTN 10 years

€ 600

645

626

May 2016

0.88%

0.98%

May 2026

Interest rate swapped
into 3M Euribor +0.50%

EMTN 15 years

€ 900

903

983

May 2016

1.38%

1.50%

May 2031

Interest rate swapped
into 3M Euribor +0.66%

EMTN 5 years

€ 750

732

745

Mar 2020

1.63%

1.80%

April 2025

Interest rate swapped
into 3M Euribor +2.01%

EMTN 6 years€ 1,250

1,215

1,243 June 2020

1.38%

1.47%

June 2026

Interest rate swapped
into 3M Euribor +1.66%

EMTN 8 years

€ 750

725

Mar 2020

2.00%

2.10%

April 2028

Interest rate swapped
into 3M Euribor +2.15%

EMTN 10 years€ 1,250

1,200

1,237 June 2020

1.63%

1.74%

June 2030

Interest rate swapped
into 3M Euribor +1.61%

EMTN 12 years€ 1,000957

987 June 2020

2.38%

2.49%

April 2032

Interest rate swapped
into 3M Euribor +2.24%

EMTN 20 years€ 1,000

958

988

2.38%

2.44%

June 2040

Interest rate swapped
into 3M Euribor +1.93%

US$ Bond 10 years

745

Mar 2020

Exchangeable bonds
5 years€ 1,0780

1,075

Jun 2016

0.00%

0.33%

Jun 2021

Exchangeable into
Dassault Aviation sharesat 1,306.25 per shareand issued at 103.75%

US$ Bond 10 years

US$ 750694

672

Apr 2017

3.15%

3.20%

Apr 2027

Interest rate swapped
into 3M Libor +0.87%

US$ Bond 30 years

US$ 750731

667

Apr 2017

3.95%

4.02%

Apr 2047

Interest rate swapped
into 3M Libor +1.61%

ACLP Private
placement

US$ 830

733

676

July 2020,
Dec 2020

1.98%-2.54%

2.77%-3.09%

July 2026
to July 2029

11,061

13,107

Jan 2011

3M
US-Libor+1.15%

4.84%

Jan 2021

Bonds

DBJ 10 years

US$ 300

0

81

Others493

448

Liabilities tofinancial institutions

493

529

Interest rate swapped
into 4.76% fixed

Reconciliation of liabilities arising from ﬁnancing liabilities:
Non-cash movements
Balance at
1 January
2021

Cash
flows

Changesin scope

Foreignexchange
movements

Others (1)Balance at
31 December
2021

Bonds and commercial papers

13,107

Liabilities to financial institutions

529(1,903)

0

168

(311)

11,061

(48)

0

12

0

Loans

493

188

(23)

0

6

0

171

Finance lease liabilities

1,798

(400)

0

58

280

1,736

Others

1,473

79

0

27

0

1,579

Total

17,095(2,295)

0

271

(31)

15,040(In € million)(1) Included in “other assets and liabilities” in the Statements of Cash Flows.

62

Airbus / Financial Statements 2021

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

37.

Financial Instruments

37.1

Financial Risk Management

By the nature of its activities, the Company is exposed to a variety
of ﬁnancial risks: (i) market risks, in particular foreign exchangerisk, but also interest rate risk, equity price risk and commodity
price risk, (ii) liquidity risk and (iii) credit risk. The Company’s
overall ﬁnancial risk management activities focus on mitigating
unpredictable ﬁnancial market risks and their potential adverse
effects on the Company’s operational and ﬁnancial performance.
The ﬁnancial risk management of the Company is generally
carried out by the Treasury department of the Company underpolicies 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 establishedspeciﬁc committees such as the Foreign Exchange Committee
and the Asset Liability Management Committee, including theCompany 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’sfunctional currency.
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 a lesser
extent in other foreign currencies. Consequently, to the extent
that the Company does not use ﬁnancial instruments to hedge
its exposure resulting from this currency mismatch, its proﬁts
will be affected by changes in the €/US$ exchange rate. As theCompany intends to generate proﬁts primarily from its operations
rather than through speculation on exchange rate movements,
it uses hedging strategies to manage and minimise 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 with risk
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 of a
speciﬁc aircraft type that are expected to occur in a given monthand hence will allow the hedge result to move along with thehedged deliveries in the event of a shift in deliveries.
If such a shift in hedged deliveries occurs, hedge ineffectivenesswill arise to the extent the maturities of the hedging instrument
and the expected timing of the hedged cash ﬂows are no longer
perfectly aligned. In order to minimise such ineffectiveness theCompany will close the timing gap by rolling 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 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 a resultof postponements or order cancellations had no impact on theeffectiveness of the hedge as long as the actual gross US dollar
cash inﬂows received at aircraft delivery in a particular monthexceeded the portion designated as being hedged in that month.
According to the prospective application requirement of IFRS 9,
the fair values of the legacy portfolio in place 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, tobe recognised in proﬁt or loss only at maturity of the originallyhedged cash ﬂows (unless those cash ﬂows are no longer
expected to occur).

2

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 fromthe hedged cash ﬂows. However, since netting arrangements arein place with all the hedge counterparties and the Company hasa policy of trading with investment grade counterparties only, thecredit risk arising from its hedging instruments, and associatedchanges in credit risk, have historically been negligible and are
expected to remain so.

Airbus / Financial Statements 2021

63

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

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 speciﬁc
agreed 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 thevariability in the range of potential outcomes taking into accountmacroeconomic movements affecting spot rates and interest
rates as well as the robustness of the commercial 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 the effective
portion of the fair value changes of the hedging derivatives inequity (within OCI) and (ii) recognising the effect of the hedge in
proﬁt or loss when the hedged cash ﬂows affect proﬁt or loss.
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 or losses of thehedging instrument and the hedged item match in terms of proﬁt
or loss recognition (“natural hedge”), so no hedge accounting isrequired. Sometimes such gains or losses may end up in different
sections of the income statement (such as operating proﬁt for thehedged item and ﬁnancial result for the hedging instrument). If
so, the Company may choose to present the gains or losses ofboth the hedging instrument and the 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 denominatedin 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 forseparately from the host purchase contract, related gains orlosses are generally recognised in other 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 casethey are accounted for under the cash ﬂow hedge model as
described above.

64

Airbus / Financial Statements 2021

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 interestbearing 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 order to minimise risks
and ﬁnancial impacts.
The vast majority of related interest rate hedges qualify for hedge
accounting, and most of them are accounted for under the fairvalue hedge model. As a result, both the fair value changes ofthese derivatives and the portion of the hedged items’ fair valuechange that is attributable to the hedged interest rate risk arerecognised in proﬁt or loss, where they offset to the extent thehedge is effective.
A few interest rate swaps that have been entered into as a hedge
of certain of the Company variable rate debt (see “– Note 36.3:
Financing Liabilities”) are accounted for under the cash ﬂow
hedge model. Related fair value gains are recognised in OCI andreclassiﬁed to proﬁt or loss when the hedged interest payments
affect proﬁt or loss.
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 mediumterm bonds. For its ﬁnancial instruments portfolio, the Company
has an Asset Liability Management Committee in place thatmeets regularly and aims to limit the interest rate risk on a fairvalue basis through a value-at-risk approach, from which resultsa 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 in order tomitigate the risks associated with the purchase of raw materials.
To the extent that the gains or losses of the derivative and thoseof the hedged item or transaction do not match in terms of proﬁt
or loss, the Company applies cash ﬂow hedge accounting to thederivative 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, witha hedge ratio of 1:1.
Sensitivities of market risks — The approach used to measure
and control market risk exposure of the Company’s ﬁnancial
instrument portfolio is, amongst other key indicators, the valueat-risk model (“VaR”). The VaR of a portfolio is the estimatedpotential loss that will not be exceeded over a speciﬁed periodof time (holding period) from an adverse market movement witha speciﬁed conﬁdence level. The VaR used by the Company
is based upon a 95% conﬁdence level and assumes a ﬁveday holding period. The VaR model used is mainly based on

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

the so-called “Monte-Carlo-Simulation” method. The model
generates a wide range of potential future scenarios for market
price movements by deriving the relevant statistical behaviourof markets for the portfolio of market data from the previous
two years and observed interdependencies between different
markets and prices.
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 to some
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 the calculated
VaR;– the use of historical data as a basis for estimating the statisticalbehaviour of the relevant markets and ﬁnally determining
the possible range of future outcomes out of this statisticalbehaviour 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 ﬁgures ofthis portfolio are measured and serve amongst other measures
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 2021 and 2020 is as follows:

Total VaR

Equityprice VaR

Currency
VaR

Commodity
price VaR

Interest
rate VaR

Foreign exchange hedges for forecast transactions
or firm commitments

910

0

945

0

173

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

127

58

68

0

110

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

52

0

39

0

39

Commodity contracts

3

0

0

3

0

(In € million)

31 December 2021

5

0

0

0

0

Diversification effectEquity swaps

(162)

2

(125)

0

(169)

All financial instruments

935

60

927

3

153

Foreign exchange hedges for forecast transactions
or firm commitments

837

0

838

0

87

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

137

120

96

0

35

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

39

0

35

0

24

2

31 December 2020

Commodity contracts

3

0

0

3

0

Equity swaps

4

4

0

0

0

Diversification effect

(214)

(1)

(201)

0

(54)

All financial instruments

806

123

768

3

92

The increase of the total VaR as of 31 December 2021 is mainly attributable to the increase of the foreign exchange portfolio. The
equity risk decrease is due to a lower volatility of shares prices over the year.
The Company uses its derivative instruments entirely for hedging purposes. As a result, the respective market risks of these hedging
instruments are – depending on the hedges’ actual effectiveness – offset by corresponding opposite market risks of the underlying
forecast transactions, assets or liabilities. Under IFRS 7, the underlying forecast transactions do not qualify as ﬁnancial instruments
and are therefore not included in the tables shown above. Accordingly, the VaR of the foreign exchange hedging portfolio in theamount of € 945 million (2020: € 838 million) cannot be considered as a risk indicator for the Company in the economic sense.

Airbus / Financial Statements 2021

65

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

Liquidity Risk
The Company’s policy is to maintain sufficient cash andcash equivalents at any time to meet its present and futurecommitments as they fall due. It manages its liquidity by holding
adequate volumes of liquid assets and maintains a committed
revolving credit facility (€ 6.0 billion as of 31 December 2021), thematurity of which has been extended to 21 October 2024, in
addition to the cash inﬂow generated by its operating business.
The Company continues to keep within its asset portfolio thefocus on low counterparty risk. In addition, it maintains a setof other funding sources, and accordingly may issue bonds,

notes and commercial papers or enter into security lending
agreements. Adverse changes in the capital markets could
increase its funding costs and limit its ﬁnancial ﬂexibility.
Further, the management of the vast majority of the Company’s
liquidity exposure is centralised by a daily cash concentration
process. This process enables it to manage its liquidity surplus
as well as its liquidity requirements according to the actual
needs of its subsidiaries. In addition, management monitors
the Company’s liquidity reserve as well as the expected cash
ﬂows from its operations.

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

Carrying
amountContractual
cash flows< 1 year

1 year2 years

2 years3 years

3 years4 years

4 years5 years> 5 years(25,387)(27,962)(12,072)(1,000)(1,539)(1,095)(2,381)(9,875)31 December 2021
Non-derivative financial liabilities
Derivative financial liabilities

Total(4,563)(6,193)(1,887)(1,661)(1,245)

(728)

(440)

(232)

(29,950)(34,155)(13,959)(2,661)(2,784)(1,823)(2,821)(10,107)(26,514)(29,007)(12,298)(774)(1,616)(1,465)(1,088)(11,766)

31 December 2020
Non-derivative financial liabilities
Derivative financial liabilities

Total(2,817)(2,420)

(955)

(712)

(659)

(79)

(11)

(4)

(29,331)(31,427)(13,253)(1,486)(2,275)(1,544)(1,099)(11,770)

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 € -3,861 million at 31 D ecember
2021 (€ -3,912 million at 31 December 2020) are not included.

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

2021

2020

Not later than one year

(245)

(260)

Later than one year and not later than five years

(758)

(925)

Later than five years(1,043)(1,004)

Total undiscounted lease liabilities(2,046)(2,189)Lease liabilities included in the statement of Financial Position(1,736)(1,798)Current
Non-current

66

Airbus / Financial Statements 2021

(245)

(260)

(1,491)(1,538)

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

Credit Risk
The Company is exposed to credit risk to the extent of nonperformance 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 the Company.
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 developments on
their performance and takes appropriate action on foreseeable
adverse development based on pre-deﬁned procedures andescalation levels.
Sales of products and services are made to customers after
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.
The booked amount of ﬁnancial assets represents the maximum
credit exposure. The credit quality of ﬁnancial assets can beassessed by reference to external credit rating (if available) orinternal assessment of customers’ 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”.

37.2

Carrying Amounts and Fair
Values of Financial Instruments

Financial instruments — The Company’s ﬁnancial assets mainly
consist of cash, short to medium-term deposits and securities.
Its ﬁnancial liabilities include trade liabilities, obligations towards
ﬁnancial institutions, issued bonds and refundable advancesfrom European governments. All purchases and sales of ﬁnancial
assets are recognised on the settlement date according tomarket conventions.
Financial assets at amortised cost — This category comprises
assets that are held for collection of contractual cash ﬂows where
those cash ﬂows represent solely payments of principal andinterest. It includes trade receivables.
Financial assets at fair value through OCI — This categorycomprises:(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 notsubsequently transferred to profit or loss on derecognition of
the equity investment nor in the event of an impairment;(ii) debt instruments where contractual cash flows are solely
payments of principal and interest, and that are held both forsales and collecting contractual cash flows. Changes in their fairvalue other than impairment losses and foreign exchange gains
and losses on monetary items are recognised directly within
AOCI. Upon disposal of such financial assets, the cumulative
gain or loss previously recognised in equity is recorded aspart of other income (other expenses) from investments in
the Consolidated Income Statement for the period. Interest
earned on the investment are presented as interest income in
the Consolidated 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 the payment
had been established.

2

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 to presentchanges in fair value in OCI).
The Company assigns its ﬁnancial instruments into classes
based on their balance sheet category.

Airbus / Financial Statements 2021

67

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 2021:
Financial assets
and liabilities atamortised cost

Fair value
through profit
or loss

Fair value
through OCI

Equity investments (1)

1,033

1,478

Customer financing

118

0(In € million)

Amortised
cost

Financial
instruments
total

Fair
value

Book
value

Fair
value

0

0

2,511

2,511

0

0

118

118

AssetsOther investments and other long-term
financial assets

Other loans

(2)

0

0

1,909

1,909

1,909

1,909

Trade receivables

0

0

5,063

5,063

5,063

5,063

Contract assets

0

0

1,404

1,404

1,404

1,404

1,005

0

0

0

1,005

1,005

0

0

1,137

1,137

1,137

1,137

Other financial assets
Derivative instruments
Non-derivative instruments
Securities

0

8,111

0

0

8,111

8,111

Cash and cash equivalents

12,075

533

1,964

1,964

14,572

14,572

Total

14,231

10,122

11,477

11,47735,83035,8300

0(11,061)(11,886)(11,061)(11,886)

Liabilities
Financing liabilities
Bonds and commercial papers
Liabilities to financial institutions
and others00(2,243)(2,243)(2,243)(2,243)Finance lease liabilities (2)00(1,736)(1,736)(1,736)(1,736)(4,563)000(4,563)(4,563)

Other financial liabilities
Derivative instruments
European Governments’ refundable
advances (3)00(3,861)(3,861)(3,861)(3,861)Others

0

(16)

(654)

(654)

(670)

(670)

Trade liabilities

Total

0

0

(9,693)(9,693)(9,693)(9,693)(4,563)(16)(29,248)(30,073)(33,827)(34,652)(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 € -3,861 million are measured at amortised cost. Fair values cannot be reliably measured because their risk sharing natureand 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 the end of production.

68

Airbus / Financial Statements 2021

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 2020:
Financial assets
and liabilities atamortised cost

Fair value
through profit
or loss

Fair value
through OCI

Equity investments (1)

967

1,278

Customer financing

237

0(In € million)

Amortised
cost

Financial
instruments
total

Fair
value

Book
value

Fair
value

0

0

2,245

2,245

0

0

237

237

AssetsOther investments and other long-term
financial assets

Other loans

(2)

0

0

1,841

1,841

1,841

1,841

Trade receivables

0

0

5,132

5,132

5,132

5,132

Contract assets

0

0

1,122

1,122

1,122

1,122

4,424

0

0

0

4,424

4,424

0

0

1,491

1,491

1,491

1,491

Other financial assets
Derivative instruments
Non-derivative instruments
Securities
Cash and cash equivalents

Total

0

6,968

0

0

6,968

6,968

9,654

512

4,273

4,273

14,43914,43915,282

8,758

13,85913,85937,89937,89900(13,107)(13,997)(13,107)(13,997)

Liabilities
Financing liabilities
Bonds and commercial papers
Liabilities to financial institutions
and others

00(2,190)(2,190)(2,190)(2,190)Finance lease liabilities (2)00(1,798)(1,798)(1,798)(1,798)(2,817)000(2,817)(2,817)

European Governments’ refundable
advances (3)00(3,912)(3,912)(3,912)(3,912)Others

0

0

(697)

(697)

(697)

(697)

Other financial liabilities
Derivative instruments

Trade liabilities

Total

0

0

(8,722)(8,722)(8,722)(8,722)(2,817)

0(30,426)(31,316)(33,243)(34,133)

2(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 € -3,912 million are measured at amortised cost. Fair values cannot be reliably measured because their risk sharing natureand 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 the end of production.

Fair Value Hierarchy
Fair value of ﬁnancial instruments — The fair value of quoted
investments is based on current market prices. If the market
for ﬁ nancial assets is not active, or in the case of unlisted
ﬁnancial instruments, the Company determines fair values byusing generally accepted valuation techniques on the basisof market information available at the end of the reporting
period. Derivative instruments are generally managed on thebasis of the Company’s net exposure to the credit risk of eachparticular counterparty and fair value information is provided to
the Company’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, ortransfer a net short position, for a particular credit risk exposure
as further described below.
Depending on the extent the inputs used to measure fair values
rely on observable market data, fair value measurements may behierarchised according to the following levels of input:– Level 1: quoted prices (unadjusted) in active markets for
identical assets and liabilities;– Level 2: inputs other than quoted prices that are observable forthe asset or liability – fair values measured based on Level 2
input typically rely on observable market data such as interest
rates, foreign exchange rates, credit spreads or volatilities;

Airbus / Financial Statements 2021

69

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

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

– Level 3: inputs for the asset or liability that are not basedon 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.

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 2021 and 2020, respectively:
2021(In € million)

2020

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

1,808

0

703

2,511

1,780

0

465

2,245

0

1,005

0

1,005

0

4,424

0

4,424

8,111

0

0

8,111

6,968

0

0

6,968

Financial assets measured at fair value
Equity Investments
Derivative instruments
Securities
Customer financing

0

0

118

118

0

0

237

237

12,075533

012,608

9,654

512

0

10,16621,994

1,538

821

24,353

18,402

4,936

702

24,040Derivative instruments

0(4,485)(78)(4,563)0(2,805)(12)(2,817)

Other financial liabilities

0

0

(16)

(16)

0

0

0

0

0

(4,485)(94)(4,579)0(2,805)(12)(2,817)

Cash equivalents

Total
Financial liabilities measured at fair value

Total

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

Balance at 1 January 2020
Business combination

Derivatives

Participations

Customerfinancing

216

528

350

Commodity
swap
agreements

Total

1,094

(1,014)(20)(1,034)

0

0

0

0

0

0

0

(216)

0

(113)

(329)

0

6

6

Equity

0

(63)

0

(63)

1,014

0

1,014

Settlements

0

0

0

0

0

2

2

Release

0

0

0

0

0

0

0

Balance at 31 December 2020

0

465

237

702

0

(12)

(12)

Profit or loss

Business combination

0

0

0

0

0

0

0

Profit or loss

0

0

(119)

(119)

0

(95)

(95)

Equity

0

238

0

238

(16)

0

(16)

Settlements

0

0

0

0

0

29

29

Others

0

0

0

0

0

0

0

Balance at 31 December 2021

0

703

118

821

(16)

(78)

(94)

As at 31 December 2020, the fair value of the written put options
on non-controlling interests (“NCI puts”) relating to ACLP was nil,mainly reﬂecting the latest projections on funding needs, slower
ramp-up phasing and market projections.

70

Total

Written put
options on
NCI interests

Airbus / Financial Statements 2021

The Company has re-measured the written put options as at
31 December 2021 and the fair value amounts to € 16 million. The
fair value of these NCI puts are derived from a discounted cash
ﬂow analysis using the latest operating plan and a projection overthe lifetime of the A220 programme. In addition a post-tax WACC
of 9.58% is used to discount the forecasted cash ﬂows, taking
into account the speciﬁcities of the programme (2020: 9.49%).

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

Financial Assets Designated at Fair Value through Profit or Loss
The following types of ﬁnancial assets held at 31 December 2021 and 2020, respectively, are designated at fair value throughproﬁt or loss:(In € million)

Nominal amount at
initial recognition at
31 December 2021

Fair value at
31 December
2021

Nominal amount at
initial recognition at
31 December 2020

Fair value at
31 December
2020

12,075

12,075

9,654

9,654

2

2

2

2

12,077

12,077

9,656

9,656

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.

Fair Value Measurement Method
The Company uses the following methods to measure fair values:

Derivatives — The fair values of derivative instruments reﬂect
quoted market prices, where available, but in most cases
are determined using recognised valuation techniques suchas 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 the extent that these
instruments are subject to master netting arrangements andsimilar agreements and managed on the basis of net credit
exposure, their fair values reflect credit and debit value
adjustments based on the net long or net short position that
the Company has with each counterparty. Except for certain
short-term commodity contracts and derivatives presented in
the Level 3 section above, derivative fair values are measured
based on Level 2 input.

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.
Securities — The fair values of securities reﬂect their quoted
market price at the end of the reporting period.

Financing liabilities — The fair values disclosed for ﬁnancing
liabilities, other than those of issued bonds and commercial
papers, are determined based on Level 2 input by discounting
scheduled or expected cash ﬂows using appropriate market
interest rates. The fair values disclosed for the issued EMTN
and US dollar bonds reﬂect public price quotations that qualify
as Level 1 input. For issued commercial papers, the carrying
amounts reﬂected in the annual accounts are used as reasonableestimates of fair value because of the relatively short period
between the origination of these instruments and their maturity.

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 originationof the instrument and its maturity or due date. The fair valueof commercial papers is determined based on Level 2 input
by discounting future cash ﬂows using appropriate interest
rates. The fair values of money market funds are determined byreference to their quoted market price.

2

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.

The following interest rate curves are used in the determination of the fair value in respect of the derivative ﬁnancial instruments asof 31 December 2021 and 2020:
31 December
2021

2020

2021

€

(Rate in %)

2020

2021

US$

6 months(0.49)(0.45)

0.29

2020
£

0.22

0.52

0.15

1 year

(0.48)(0.40)

0.53

0.28

0.80

0.20

5 years

0.01(0.49)

1.35

0.43

1.13

0.19

10 years

0.30(0.29)

1.56

0.93

1.07

0.40

Airbus / Financial Statements 2021

71

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 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. Furthermore,securities lending transactions are accounted for as collateralised borrowings. As a result, the securities pledged as collateral continue
to be recognised on the balance sheet and the amount of cash received at the outset of the transaction is separately recognised asa ﬁnancial liability. The following tables set out, on a counterparty speciﬁc basis, the potential effect of master netting agreements
and collateralised borrowings on the Company’s Financial Position, separately for ﬁnancial assets and ﬁnancial liabilities that were
subject to such agreements as of 31 December 2021 and 2020, respectively:
Related amounts not
set off in Statementof Financial PositionGrossamounts
recognisedGrossamounts
recognised
set off in the
Financial
Statements

Net amounts
presented in
the Financial
Statements

Financial
instruments

Cashcollateral
received

Net amountFinancial asset

802

0

802

(788)

0

14

Financial liabilities

4,156

0

4,156

(788)

0

3,368

Financial asset

3,879

0

3,879

(1,519)

(77)

2,283

Financial liabilities

2,192

0

2,192

(1,519)0673(In € million)

31 December 2021

31 December 2020

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 expected maturity:
Remaining period(In € million)

1 year

2 years

3 years

4 years

5 years> 5 years

Total

21,225

17,923

17,102

10,899

8,161

7,233

82,543

0

0

0

0

0

0

0

15,60912,308

10,427

8,716

6,685

14,791

68,536

0

0

0

0

0

0

0

31 December 2021
Net forward and swap contracts
Foreign exchange options
31 December 2020
Net forward sales contracts
Foreign exchange options

The following table sets out the notional amount of foreign exchange hedges in place as of 31 December 2021 relating to thecommercial activities of Airbus, and the average euro converted rates applicable to corresponding EBIT.
2022

2023

2024

2025

2026+

Total

21,55919,31818,53011,833

17,10088,340

€/US$

1.22

1.23

1.24

1.26

1.32

1.25

£/US$

1.36

- (1)

- (1)

-

-

1.36

(In $ million)

Total hedges
Forward rates(1) Related volumes for the years 2023 and 2024 are remote.

In 2021 new hedge contracts of US$ 29.5 billion (2020: US$ 4.5 billion) were added at an average rate of 1.21 US$/€ (2020: 1.17 US$/€).

72

Airbus / Financial Statements 2021

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

As of 31 December 2021, the total hedge portfolio with maturities up to 2028 amounts to US$ 88.3 billion (2020: US$ 81.0 billion)
and covers a major portion of the foreign exchange exposure expected over the hedging horizon. The average US$/€ hedge
rate of the US$/€ hedge portfolio until 2028 amounts to 1.25 US$/€ (2020: 1.26 US$/€).
(In £ million)

2022

2023

2024

2025

2026+

Total

Total hedges

891

770

674

407

273

3,015

0.87

0.88

0.89

0.90

0.91

0.88

Forward rates€/£

During the course of the year 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
1 year

2 years

3 years

4 years

5 years

6 years

Interest rate contracts

12

0

1,000

750

1,850

1,324

750

4,650

10,336

Interest rate future contracts

0

0

0

0

0

0

0

0

0

109

0

815

1,000

0

600

1,222

1,400

5,146

0

0

0

0

0

0

0

0

0

(In € million)

7 years > 7 years

Total

31 December 2021

31 December 2020
Interest rate contracts
Interest rate future contracts

Please also refer to “– Note 36.3: Financing Liabilities”.
The notional amounts of commodity contracts are as follows:
Remaining period
1 year

2 years

3 years

4 years> 4 years

Total

31 December 2021

20

21

3

0

0

44

31 December 2020

25

22

11

3

0

61

> 4 years

Total(In € million)

The notional amounts of equity swaps are as follows:2

Remaining period(In € million)

1 year

2 years

3 years

4 years

31 December 2021

18

17

18

10

0

63

31 December 2020

32

23

17

8

0

80

Airbus / Financial Statements 2021

73

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
2021 and 31 December 2020:
31 December
2021

2020
Hedge reserve(In € million)

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

(262)

2,521

5,279

(3,161)

12

(111)

5,291

(3,272)

(64)

(484)

(3)

6

(67)

(478)

(106)

55

1

(4)

(105)

51

Tax impact(1,409)916

Closing balance

3,448

(262)

OthersAmount classified to profit or loss (inefficiency)

The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectivenessfor cash-ﬂow hedges as of 31 December 2021:
Carrying values

OCI

Hedge
Amounts
Other changes
inefficiency reclassified fromin value of therecorded in hedge reserve tohedge reserve financial result
profit or loss

Asset

Liability

Changes in valuesof the hedging
instrument

Net forward sales contracts

637(4,092)

5,349

(72)

(106)

Foreign exchange options

0

0

0

2

0

0

Embedded Derivatives

0

(40)

30

0

0

(3)
0

(In € million)

Foreign currency risk
(64)

Interest rate risk

0

(1)

0

0

0

Commodity swap risk

7

(3)

(12)

0

1

0

Equity swap risk

3

(5)

(6)

0

0

0

647

(4,141)

5,361

(70)

(105)

(67)

Total

The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness for
cash-ﬂow hedges as of 31 December 2020:
Carrying values

OCI

Hedge
Amounts
Other changes
inefficiency reclassified fromin value of therecorded in hedge reserve tohedge reserve financial result
profit or loss

Asset

Liability

Changes in valuesof the hedging
instrument

Net forward sales contracts

3,840(2,530)(6,087)

2,934

55

(483)

Foreign exchange options

11

(14)

1

(9)

0

(1)

Embedded Derivatives

5

0

(115)

0

0

0

Interest rate risk

0

(1)

(2)

0

0

0

Commodity swap risk

14

(27)

6

0

(4)

6

Equity swap risk

0

(16)

0

0

0

0

3,870

(2,588)(6,197)

2,925

51

(478)

(In € million)

Foreign currency risk

Total

74

Airbus / Financial Statements 2021

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

37.6

Net Gains or Net Losses

The Company’s net gains or net losses recognised in proﬁt or loss in 2021 and 2020, respectively, are as follows:(In € million)

2021

2020

404

(117)

Financial assets or financial liabilities at fair value through profit or loss
Held for trading
Designated on initial recognition

188

(277)

Financial assets at amortised cost

283

(598)

Financial assets at fair value through OCI (previously available-for-sale)Financial liabilities measured at amortised cost

20

75

(700)

266

Net losses of € -218 million (2020: € -194 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, the Company
measures loss allowances at an amount that represents credit
losses resulting from default events that are possible within thenext 12 months, unless the credit risk on a ﬁnancial instrument
has increased signiﬁcantly since initial recognition. In the eventof such signiﬁcant increase in credit risk the Company measuresloss 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.
The Company applies the low credit risk exemption allowing
the Company to assume that there is no signiﬁcant increasein credit risk since initial recognition of a ﬁnancial instrument,

if the instrument is determined to have low credit risk at thereporting date. Similarly, the Company has determined that its
trade receivables and contract assets generally have low credit
risk. The Company applies the simpliﬁed approach permitted by
IFRS 9 of measuring expected credit losses of trade receivables
and contract assets on a lifetime basis from initial recognition.
Investment grade instruments — The Company considers
a signiﬁcant increase in credit risk to have occurred, if there isa downgrade 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 initial recognition,
a downgrade by four notches is considered as a signiﬁcant
increase in credit risk.

Stage 112-month ECLStage 2
Life-time ECLStage 3Credit impaired ECL

Total

At 1 January 2021

8.09

18.26

23.42

49.77

Change in financial assets

1.91(2.17)(1.77)(2.03)

Change in risk parameters

2.08

4.65

(2.88)

3.85

At 31 December 2021

12.08

20.74

18.77

51.59

Stage 112-month ECL (1)Stage 2
Life-time ECL (1)Stage 3Credit impaired ECL (1)Total (1)(In € million)(In € million)

At 1 January 2020

5.25

2.86

9.14

17.25

Change in financial assets

3.09

87.40

14.28

104.77

Change in risk parameters(0.25)(72)0(72.25)

At 31 December 2020

8.09

18.26

23.42

49.77

2

(1) Restated.

Airbus / Financial Statements 2021

75

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

The following table breaks down the gross carrying amount of loans and receivables as of 31 December 2021 and 2020,
separately showing those that are impaired, renegotiated or past due:(In € million)

Renegotiated /Not not past
past due / not
Gross Past due ≤due impaired impaired 3 months

Past due> 3 and ≤6 months

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

Past due >12 months Impairment

Total

31 December 2021
Tradereceivables

3,518

3

356

485

135

220

72

635

(361)

5,063

Contract assets

1,406

0

0

0

0

0

0

0

(2)

1,404

Others

2,301

3

248

68

122

12

29

464

(187)

3,060

Total

7,225

6

604

553

257

232

101

1,101

(551)

9,528

31 December 2020
Tradereceivables

4,302

0

172

358

117

119

92

277

(305)

5,132

Contract assets

1,123

0

0

0

0

0

0

0

(1)

1,122

Others

2,396

4

431

302

130

23

10

366

(156)

3,506

Total

7,821

4

603

660

247

142

102

643

(462)

9,760

The 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 2021 and 2020, respectively:(In € million)

2021

2020

Other loans

0

(143)

Trade receivables

(83)

(71)

Contract assets

(1)

0

(84)

(214)

Total

76

Airbus / Financial Statements 2021

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

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 the Company.
Litigation is subject to many uncertainties, and the outcome ofindividual matters is not predictable with certainty. Provisions
have been accounted for in accordance with IFRS criteria. It isreasonably possible that the ﬁnal resolution of some of thesematters may require the Company to make expenditures, inexcess of established provisions over an extended period of timeand in a range of amounts that cannot be reasonably estimated.
The term “reasonably possible” is used herein to mean that the
chance of a future transaction or event occurring is more thanremote 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 are described below.
Other than as described below, the Company is not aware of any
material governmental, legal or arbitration proceedings (including
any such proceedings which are pending or threatened) which
may have or have had in the recent past signiﬁcant effects on
Airbus SE’s or the Company’s Financial Position or proﬁtability.
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.

Investigation by the UK SFO, France’s
PNF, US Departments of Stateand Justice and Related Commercial
Litigation
The Company reached ﬁnal agreements (“the agreements”) 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
and corruption, as well as with the US Department of State(“DoS”) and the DoJ to resolve their investigations into inaccurate
and misleading ﬁlings made with the DoS pursuant to the US
International Trafﬁc in Arms Regulations (“ITAR”). The agreements
were approved and made public on 31 January 2020.
Under the terms of the agreements, 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. 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 may be used for approved remedial compliancemeasures. All penalties have been paid.
Under the terms of the Convention judiciaire d’intérêt public(“CJIP”) with the PNF, the Company has an obligation to submit
its compliance programme to targeted audits carried out 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 will be
imposed on the Company in light of the continuing monitorshipto be conducted by the AFA.
Under the terms of the DPA with the DoJ, no independent
compliance monitor will be imposed on Airbus under theagreement with the DoJ, but the Company will periodically reporton its continuing compliance enhancement progress during
the three year term of the DPA and carry out further reviews asrequired by the DoJ.
The agreements result in the suspension of prosecution fora duration of three years whereupon the prosecutions will
be extinguished if the Company complies with their terms
throughout the period.
Under the terms of the Consent Agreement with the DoS, the
DoS has agreed to settle all civil violations of the ITAR outlinedin the Company’s voluntary disclosures identified in theConsent Agreement, and the Company has agreed to retain an
independent export control compliance ofﬁcer, who will monitor
the effectiveness of the Company’s export control systems andits compliance with the ITAR for a duration of three years.
Any breach of the terms of the agreements by the Company
could lead to rescission by the authorities of the terms of theagreements and reopening of the prosecutions. Prosecution
could result in the imposition of further monetary penalties orother sanctions including additional tax liability and could havea material impact on the Financial Statements, business andoperations of the Company.

2

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 theCompany, (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 for certain
public sector contracts, and/or (iv) damage to the Company’sbusiness or reputation via negative publicity adversely affecting
the Company’s prospects in the commercial market place.
Airbus will continue to cooperate with the authorities in the future,
pursuant to the agreements and to enhance its strong Ethics &Compliance culture within the Company.
Several consultants and other third parties have 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 havea material impact on the Financial Statements, business andoperations of the Company.

Airbus / Financial Statements 2021

77

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

Securities Litigation
In August 2020, a putative class action lawsuit was ﬁled in US
federal court in the state of New Jersey against Airbus SE andmembers of its current and former management. The Company
was served with the complaint in the fourth quarter of 2021.
The lawsuit was brought on behalf of alleged shareholders thatpurchased or otherwise acquired Airbus SE securities in the
US between 24 February 2016 and 30 July 2020, and asserts
violations of US securities laws. The complaint alleges that
defendants made false and misleading statements or omissions
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 the Company’s historic
practices regarding the use of third party business partners
and anti-corruption compliance. The lawsuit seeks unquantiﬁed
damages.
In addition, the Company received notiﬁcation in August 2021 of
two separate claims alleging similar facts as the US class action.
Two claims have been ﬁled in the Netherlands purportedly onbehalf of Airbus investors.
The ﬁrst Dutch claim was ﬁled 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. This claim
is now pending before the Amsterdam District Court.
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 a class action
against the Company before the Dutch courts. This second
Dutch claim targets the Company, certain of the Company’s
current and former directors and ofﬁcers, and the Company’s
current and former auditors. A procedural hearing is scheduled
for the second quarter of 2022.
Both claims allege that the Company violated its reporting
obligations 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 theCompany, and related criminal investigations, which allegedly
impacted the Company’s share price.
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 the Company.

Air France Flight 447 Trial
On 1 June 2009, an A330 operated by Air France ﬂight AF447
from Rio de Janeiro to Paris disappeared over the Atlantic
Ocean with 228 persons onboard. The wreckage was locatedin April 2011 after several search campaigns organised by the
Bureau d’Enquêtes et d’Analyses (BEA), which published its ﬁnal

78

Airbus / Financial Statements 2021

investigation report in July 2012. In the wake of the accident,
the prosecutor in Paris opened an investigation for involuntarymanslaughter and Airbus SAS was charged in March 2011.
In September 2019, the investigating magistrates closed theinvestigation and dismissed all criminal charges after a thoroughanalysis of the technical and legal elements of the case. However,the Paris Court of Appeal overturned the magistrates’ decisionand ordered trial for involuntary manslaughter. The Company’s
appeal to the French Supreme Court has been dismissed. The
trial is scheduled to take place in the fourth quarter of 2022. The
criminal trial in the Paris Criminal Court and any judgment or
decision unfavourable to the Company could result in damage
to its business or reputation.

Qatar Airways Commercial Litigation
Citing surface degradation on some of its A350 ﬂeet and alleging
an underlying “design defect”, Qatar Airways ﬁled a legal claim
against the Company in the London Commercial Court on
17 December 2021. The claim seeks (a) liquidated damages
for aircraft grounded by the Qatar Civil Aviation Authority, (b)an order that Airbus must deliver a full root cause analysis forsurface degradation issues, and (c) a declaration by the courtthat Airbus may not deliver any further A350 aircraft to Qatar
Airways until alleged “design defects” are cured. The Company
rejects Qatar Airways’ mischaracterisation of the non-structural
surface degradation and the attendant grounding of the aircraft,which underpin the claim. Accordingly, the Company will
defend itself vigorously in the proceedings. The consequencesof such litigation and the outcome of the proceedings cannot
be fully assessed at this stage, but any judgment or decision
unfavourable to the Company could have a material adverse
impact on the Financial Statements, business and operationsof the Company as well as its reputation.

Other Investigations
The Company is cooperating fully with the authorities in a judicial
investigation in France related to Kazakhstan. In this spirit, theCompany was interviewed by the investigating magistrates
and has been granted the status of “assisted witness” in theinvestigation.
The Company is also cooperating fully with the authorities in a
judicial investigation in France related to Libya. In this spirit, theCompany has responded voluntarily to requests for information.
In 2019, the Company self-reported to German authorities
potentially improper advance receipt and communicationof conﬁdential customer information by employees of Airbus
Defence and Space GmbH. The information concerned relates
to future German government procurement projects. The selfdisclosure 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
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 the Munich
prosecution issued a penalty notice against Airbus Defence andSpace GmbH for € 10 million for negligent violation of supervisory
duties in connection with this matter. The Company continues
to fully cooperate with relevant authorities.

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

39.

Auditor Fees

With reference to Section 2:382a (1) and (2) of the Netherlands Civil Code, the following fees for the ﬁnancial year 2021 have been
charged by EY to the Company, its subsidiaries and other consolidated entities:(In € thousand)

2021

2020

Audit of the Financial Statements

10,265

11,386

Other audit engagements

284

308

Tax services

497

445

Other non-audit services

Total

257

447

11,303

12,586

Other audit ﬁrms have audit fees related to audit process, certiﬁcation and examination of individual and consolidated accountsof € 5 million in 2021 (2020: € 5 million).

40.

Events after the Reporting Date

Airbus Atlantic, a wholly-owned Airbus subsidiary, was ofﬁcially established on 1 January 2022. The new company groups thestrengths, resources and skills of Airbus’s sites in Nantes and Montoir-de-Bretagne, the central functions associated with theiractivities, as well as the STELIA Aerospace sites worldwide.
This uniﬁcation is part of the transformation project announced in April 2021, aimed at strengthening the value chain of aerostructureassembly within Airbus’s industrial setup.
In addition, the Company has now reached a preliminary understanding concerning the establishment of a new aerostructuresassembly company in Germany, as well as the future of the Detail Parts and sub-assembly activities at Premium AEROTEC. Someof the aerostructures assembly of aircraft fuselages, currently spread across the company and subsidiaries, could be merged andfully integrated into the Company as a core activity on 1 July 2022.

2

Airbus / Financial Statements 2021

79

80

88.71%

Airbus / Financial Statements 2021

MBDA
(France)

37.5%*

Airbus Defence
and Space SAS(France)11.29%

75%*

Airbus Group
Inc.
(USA)

Airbus Americas,
Inc.
(USA)

Airbus Helicopters
DeutschlandGmbH(Germany)

Airbus Helicopters(France)

Premium Aerotec
GmbH(Germany)

Airbus Helicopters
España, S.A.
(Spain)Airbus Canada
LimitedPartnership(Canada)Airbus SAS(France)

Airbus Operations
GmbH(Germany)

Stelia Aerospace
until 31.12.2021/
Airbus Atlantic
as of 01.01.2022(France)

4.22%

95.78%

Airbus Helicopters
UK Limited(UK)

ATR GIE(France)50%*

Computadoras,Redese Ingenieria, S.A.
(Spain)Airbus Defence
and Space, S.A.
(Spain)Airbus Operations
Limited(UK)

AirbusOperations, S.L.
(Spain)Airbus Operations
SAS(France)

Airbus Defence
and Space
Limited(UK)

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

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.

MBDA Group

Ariane Group

Airbus Helicopters

Airbus Defence and Space

Ariane Group50%*

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

Airbus DS Holding
SAS
4.04%
(France)Elbe
FlugzeugwerkeGmbH(Germany)

45%

Airbus Defence
and Space GmbH
(Germany)(The Netherlands)

AIRBUS SE

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

2.9 Appendix “Simpliﬁed Airbus Structure”

2. Notes to the IFRS Consolidated Financial Statements /2

Airbus / Financial Statements 2021

81

Chapter

3
82

Airbus / Financial Statements 2021

3
Airbus SE
IFRS Company
Financial Statements
Airbus SE - IFRS Company Income Statement
for the years ended 31 December 2021 and 202084

Airbus SE - IFRS Company Statement of Comprehensive Income
for the years ended 31 December 2021 and 202084

Airbus SE - IFRS Company Statement of Financial Position
for the years ended 31 December 2021 and 2021

85

Airbus SE - IFRS Company Statement of Cash Flowsfor the years ended 31 December 2021 and 202086

Airbus SE - IFRS Company Statement of Changes in Equity
for the years ended 31 December 2021 and 202087

Airbus / Financial Statements 2021

83

3. Airbus SE – IFRS Company Financial Statements /Airbus SE - IFRS Company Income Statement
for the years ended 31 December 2021 and 2020
2021

2020

Operating income

53

3,757

Operating expenses

(113)

(159)

(In € million)

Note

28

42

6, 9

(21)

(187)

6

Income from investments
Impairment of investments

(53)

3,453

Interest income

63

142

Interest expense

(157)

(190)

32

(248)

Total operating result

Other financial result
Total financial result

7

Profit (Loss) before income taxes
Income Tax

Profit (Loss) for the period

8

(62)

(296)

(115)

3,157

1

(3)

(114)

3,154

Airbus SE - IFRS Company Statement of Comprehensive Income
for the years ended 31 December 2021 and 2020
(In € million)

2021

2020

Profit (Loss) for the period

(114)

3,154

(80)

(52)

Other comprehensive income
Items that may be reclassified to profit or loss:
Change in fair value of financial assets
Change in fair value of cash flow hedges

00Other comprehensive income, net of tax

(80)

(52)

(194)

3,102

Total comprehensive income of the period

84

Airbus / Financial Statements 2021

3. Airbus SE – IFRS Company Financial Statements /Airbus SE - IFRS Company Statement of Financial Position
for the years ended 31 December 2021 and 2021
(In € million)

Note

2021

2020

AssetsNon-current assets
Investments in subsidiaries and associates

917,334

16,690Long-term financial assets

10

1,389

1,345

Non-current other financial assets

10

2,931

2,424

14

44

0

0

Non-current other assets
Deferred tax assets

8

Non-current securities

14

6,477

5,021

28,14525,52419492

Current assets
Trade receivables
Short-term financial assets

10

9

122

Current other financial assets

10

1,981

1,136

Current accounts Airbus companies

10

11,239

11,167

96

66

Current other assets
Current securities

14

1,245

1,592

Cash and cash equivalents

14

13,145

10,671

27,73425,24655,87950,770Total assets
Equity and liabilities
Stockholders’ equity

13

Capital stock

787

785

Share premium

3,712

3,599

Retained earnings

4,796

1,581

Legal reserves

42

122

Treasury shares

(45)

(42)

Result of the year

(114)

3,154

9,178

9,199

3

Non-current liabilities
Long-term financing liabilities

14

10,328

11,356

Non-current other financial liabilities

10

2,836

2,023

Deferred tax liabilities

8

0

27

13,164

13,406

Current liabilities
Short-term financing liabilities

14

591

1,156

Current accounts Airbus companies

1030,75625,527

Current other financial liabilities

10

1,982

1,143

Current other liabilities

Total equity and liabilities

208

339

33,53728,16555,87950,770Airbus / Financial Statements 2021

85

3. Airbus SE – IFRS Company Financial Statements /Airbus SE - IFRS Company Statement of Cash Flowsfor the years ended 31 December 2021 and 2020
2021

2020

(114)

3,154

Interest income

(63)

(142)

Interest expense

157

190

Interest received

93

231

(205)

(172)

(1)

3

Results on disposal of assets

00Depreciation and amortisation

21

0(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)

Valuation adjustments

(460)

903

Dividends received

(17)

(42)

Change in current and non-current provisions

30

0

Change in other operating assets and liabilities

440(4,063)

Trade receivables

483

(469)

Trade liabilities

(68)

45

Other assets and liabilities and others

25(3,639)(119)

62

Cash provided by (used for) operating activities
Investing activities

(550)

(56)

Payments for long-term financial assets

(130)

(294)

Proceeds from long-term financial assets

504

383

2

7

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

9

Proceeds from subsidiaries, joint ventures, businesses and non-controlling interests (net of cash)
Dividends received
Payments for investments in securities

1742(2,890)(157)

Proceeds from disposals of securities

1,730

6,508

Cash provided by (used for) investing activities(1,317)

6,433

Financing activities
591

5,940

Repayment of financing liabilities(1,985)0Change in current accounts Airbus companies

5,541(9,672)00Changes in capital

134

89

Change in treasury shares

(22)

(4)

Increase in financing liabilities

Cash distribution to Airbus SE shareholders

Cash provided by (used for) financing activities

4,259(3,647)

Effect of foreign exchange rate changes on cash and cash equivalents

(349)

(306)

Net increase in cash and cash equivalents

2,474

2,542

Cash and cash equivalents at beginning of period

10,6718,129

13,145

10,671

Cash and cash equivalents at end of period

86

Airbus / Financial Statements 2021

14

3. Airbus SE – IFRS Company Financial Statements /Airbus SE - IFRS Company Statement of Changes in Equity
for the years ended 31 December 2021 and 2020
Legal reserves (1)Capital
stock

Share
premium

Retainedearnings

Financialassets atfair value

784

3,555

1,539

174

0

(82)

5,970

Profit for the period

0

0

3,154

0

0

0

3,154

Other comprehensive income

0

0

0

(52)

0

0

(52)

Total comprehensive income for the period

0

0

3,154

(52)

0

0

3,102

Capital increase

1

44

0

0

0

0

45

Share-based payment (IFRS 2)

0

0

42

0

0

0

42

(In € million)

Note

Balance at 1 January 2020

Cashflow Treasury
hedgessharesTotalequityCash distribution to Airbus SE shareholders

0

0

0

0

0

0

0

Change in treasury shares

0

0

0

0

0

40

40

785

3,599

4,735

122

0

(42)

9,199

0

0

(114)

0

0

0

(114)

Balance at 31 December 2020
Profit (Loss) for the period
Other comprehensive income

0

0

0

(80)

0

0

(80)

Total comprehensive income for the period

0

0

(114)

(80)

0

0

(194)

Capital increase

2

113

0

0

0

0

115

Share-based payment (IFRS 2)

0

0

61

0

0

0

61

Cash distribution to Airbus SE shareholders

13

0

0

0

0

0

0

0

Change in treasury shares

13

0

0

0

0

0

(3)

(3)

787

3,712

4,682

42

0

(45)

9,178

Balance at 31 December 2021
(1) The distribution of legal reserves is restricted by Dutch law.

3

Airbus / Financial Statements 2021

87

Chapter

4
88

Airbus / Financial Statements 2021

4
Notes to the
IFRS Company
Financial Statements
4.1

Basis of Presentation

91

4.2

Company Performance

94

4.3

Operational Assets and Liabilities

97

4.4

Employees Costs and Benefits

100

4.5

Capital Structure and Financial Instruments

100

4.6

Other Notes

111

Airbus / Financial Statements 2021

89

4. Notes to the IFRS Company Financial Statements /Contents

4.1

Basis of Presentation

91

4.4

Employees Costs and Beneﬁ ts

100

1.
2.
3.
4.
5.

The Company
Impact of the COVID-19 Pandemic
Signiﬁcant Accounting Policies
Key Estimates and Judgements
Related Party Transactions

91
91
91
92
93

12.

Number of Employees

100

4.5

Capital Structure
and Financial Instruments

100

4.2

Company Performance

94

13.
14.
15.

Total Equity
Cash, Securities and Financing Liabilities
Information about Financial Instruments

100
102
105

6.
7.
8.

Total Operating Result
Total Financial Result
Income Taxes

94
94
95

4.6

Other Notes

111

16.
17.

Auditor Fees
Events after the Reporting Date

111
111

4.3

Operational Assets and Liabilities

97

9.

Investments in Subsidiaries, Associates
and Participations
Financial Assets and Financial Liabilities
Commitments and Contingencies

97
99
99

10.
11.

90

Airbus / Financial Statements 2021

4. Notes to the IFRS Company Financial Statements /4.1 Basis of Presentation
1.

The Company

The Company’s principal activity is acting as a holding andmanagement company for the subsidiaries of Airbus SE, the“Company”, a listed company in the form of a European public
limited-liability company (Societas Europaea), legally seated in
Amsterdam (current registered ofﬁce at Mendelweg 30, 2333
CS Leiden, The Netherlands) and registered at the Dutch

2.

Commercial Register (Handelsregister) in The Hague under
number 24288945. The Company is listed on the European
stock exchanges in Paris, Frankfurt am Main, Madrid, Barcelona,
Valencia and Bilbao. The IFRS Financial Statements wereauthorised for issue by the Company’s Board of Directors on
16 February 2022.

Impact of the COVID-19 Pandemic

Regarding the impact of the COVID-19 pandemic, please refer to “– Note 2 Impact of the COVID-19 pandemic” of the Consolidated
Financial Statements.

3.

Signiﬁcant Accounting Policies

Basis of preparation — The Company’s Financial Statements
are prepared in accordance with International Financial ReportingStandards (“IFRS”), issued by the International AccountingStandards Board (“IASB”) as endorsed by the European Union(“EU”) and with Part 9 of Book 2 of the Netherlands Civil Code.
They are prepared and reported in euro (“€”) and all values arerounded 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 notequal to the consolidated equity and net result. A reconciliationof the total shareholders’ equity and proﬁt for the period ispresented in “– Note 13: Total Equity” to 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 2021 and issued but not yet
applied please refer to “– Note 5: Change in Accounting Policies
and Disclosures” of the Consolidated Financial Statements.
In addition, no material changes are expected in the Company
Financial Statements of Airbus SE from the implementationof the new standards not yet applied. Further information
about Share-based payment and Employee Stock Ownership
Plans (ESOP) is presented in Note 33 and information about
Remuneration is presented in Note 34 of the Consolidated
Financial Statements.

4

Airbus / Financial Statements 2021

91

4. Notes to the IFRS Company Financial Statements /A number of new or revised standards, amendments and improvements to standards as well as interpretations are not yet effective
for the year ended 31 December 2021 and have not been applied in preparing these Financial Statements and early adoption is
not planned:
IASB effective date forannual reporting periods
beginning on or afterEndorsement
statusAmendments to IFRS 3 “Reference to the Conceptual Framework”

1 January 2022

Endorsed

Amendments to IAS 16 “Property, Plant and Equipment – Proceeds before
Intended Use”

1 January 2022

Endorsed

Amendments to IAS 37 “Onerous Contracts – Cost of Fulfilling a Contract”

1 January 2022

Endorsed

Annual Improvements to IFRS Standards 2018–2020

1 January 2022

Endorsed

IFRS 17 “Insurance Contracts”

1 January 2023

Endorsed

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

1 January 2023

Not yet endorsed

Amendments to IAS 8 “Definition of Accounting Estimates”

1 January 2023

Not yet endorsed

Amendments to IAS 1 “Disclosure of Accounting Policies”

1 January 2023

Not yet endorsed

Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arisingfrom a Single Transaction”

1 January 2023

Not yet endorsed

Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 –Comparative Information”

1 January 2023

Not yet endorsedStandards and amendments

The information with regard to Capital Management is disclosed
in Note 35, further information about Litigation and Claims refers
to Note 38 and Events after the Reporting Date are disclosed in
Note 40 of the Consolidated Financial Statements.

4.

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 circumstances prevailing atthat time. The estimates and assumptions are based on available
information and conditions at the end of the ﬁnancial period
presented and are reviewed on an ongoing basis.

92

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.

Airbus / Financial Statements 2021

The details regarding the use of estimates and judgements aredescribed in “– Note 4 Key Estimates and Judgements” of theConsolidated Financial Statements.
Key accounting estimates and judgements affecting theassessment and measurement of impairment are included
in “– Note 9 Investments in Subsidiaries, Associates andParticipations” of the Company Financial Statements.

4. Notes to the IFRS Company Financial Statements /5.

Related Party Transactions

Key Management PersonnelIntercompany Transactions

The details regarding the compensation of key management
personnel are described in “– Note 10 Related Party Transactions”
of the Consolidated Financial Statements.

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 withmarket levels and in accordance with national and internationaltax requirements (arm’s length principle).

The following table discloses the related party intercompany transactions in 2021 and 2020:(In € million)

Sales of Purchases
Loans
Loans
goods of goods
granted /received /
and
and
Other
Other
Hedge
Hedge
services
services
receivables
liabilities relationships relationships
and other and other Receivables at Liabilities atdue atdue at receivables atpayables atincome expenses 31 December 31 December 31 December 31 December 31 December 31 December

2021
Total transactions
with subsidiaries

103

(314)

11,258(29,369)1,290(591) (1)

4,140

(585)

Total transactions
with associates

37

(1)

0

0

108

(1,410)00Total transactions
with subsidiaries

3,825

(479)

11,617(24,426)

1,366(3,793)945(2,185)

Total transactions
with associates

68

(1)

42

0

101

(1,144)

0

0

2020

(1) Due to the merge of Airbus Finance BV, the existing loans between Airbus SE and the subsidiary have been acquired and cancelled and the bonds of Airbus Finance BV fromthird parties have also been acquired (see “– Note 9: Investments in Subsidiaries, Associates and Participations”).

For further information about granted guarantees to subsidiaries please refer to “– Note 11: 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 15.7: Impairment
Losses” of the Company Financial Statements.

4

Airbus / Financial Statements 2021

93

4. Notes to the IFRS Company Financial Statements /4.2 Company Performance6.

Total Operating Result
Notes(In € million)

Operating income
Corporate services rendered to Airbus companies
Operating expenses

2021

2020

53

3,757

53

3,757

(113)

(159)

Service fees charged by Airbus companies

(50)

(50)

Administrative expenses

(63)

(109)

Income from investments

28

42

Dividends received from Airbus companies

17

42

Gain on disposal of investments

9

Expense from investments
Impairment

9

Total operating result

11

0

(21)

(187)

(21)

(187)

(53)

3,454

Corporate services rendered to Airbus companies decreased by € 3,704 million to € 53 million (2020: € 3,757 million), mainly due tothe agreement in 2020 with Airbus companies regarding the recharge of the penalties due to the French, UK and US authorities.

7.

Total Financial Result
Notes(In € million)

2021

2020

Interest result

(94)

(48)

Interest income from securities measured at fair value through OCI

28

53

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

(20)

3

Interest income on financial assets measured at amortised cost

55

86

Interest expense on financial liabilities measured at amortised cost

(157)

(190)

32

(249)

Other financial result
Option liability exchangeable bond
Change in fair value measurement of financial assets

9

0

77

57

(174)

79

(224)

Other (1)

(104)

72

Total financial result

(62)

(297)

Impairment and Expected Credit Loss

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

94

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

equity investment by € 187 million recorded through Proﬁt and
Loss, and an impairment of the loan by € 127 million recorded
through ﬁnancial result.

In November 2019, Airbus SE made further capital contribution
and loan into Proj BV. Based on the latest developments, are-assessment of the Proj BV ﬁnancial assets was performedin December 2020 leading to a decrease in the fair value of the

In February 2021, a debt forgiveness has been signed with
Proj BV and a loss of € 164 million has been recorded throughFinancial Result. The impairment of the loan has been releasedfor € 158 million.

Airbus / Financial Statements 2021

4. Notes to the IFRS Company Financial Statements /8.

Income Taxes

The Company is tax registered in the Netherlands. The Company
is heading a ﬁscal unity, which also includes Airbus Group
Finance B.V. until 31 December 2021 (see “– Note 9: Investments
in Subsidiaries, Associates and Participations”), Airbus Defence
and Space Netherlands B.V. and therefore the Company isseverally and jointly liable for income tax liabilities of the ﬁscal
unity as a whole.

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 and liabilities
and the tax base of assets and liabilities, are calculated using
the substantively enacted tax rates expected to apply when they
are realised or settled. Deferred tax assets are recognised if it isprobable that they will be realised.

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

Current tax income (expense)

2021

2020

0

0

Deferred tax income (expense)

1

(3)

Total

1

(3)

The following table shows reconciliation from the theoretical income tax (expense) using the Dutch corporate tax rate to the reported
income tax (expense):2021(In € million)

Profit (loss) before income taxes

2020

(115)

3,157

25.0%

25.0%

Expected income (expense) for income taxes

29

(789)

Effects from tax rate differentials / Change of tax rate

30

Non-taxable agreements reached with Airbus companies

0901

Non-taxable income from investment and associates

18

(33)
19

Corporate income tax rate

Option liability exchangeable bond0

Income from other companies within the fiscal unity

00

Impairment on investment and associates

34

(79)

22

(22)

(105)

0

1

(3)

Other
movements

Movement
throughincomestatement

31 December 2021
Deferredtax
assetsDeferredtax
liabilities(15)

Other non-deductible expenses and tax-free income
Changes in valuation allowances (1)Reported income (expense) for income taxes(1) Reassessment of recoverability of deferred tax assets based on future taxable profits.

Deferred income taxes as of 31 December 2021 are related to the following assets and liabilities:

1 January 2021
Deferredtax
assetsDeferredtax
liabilities

OCI

OthersDeferredtax benefit(expense)

0

(41)

26

0

0

0

Financial instruments

4

0

0

0

11

15

Net operating loss and tax loss carry forwards

10

0

0

0

(10)

0

0

Deferred tax assets (liabilities) before offsetting

14

(41)

26

0

1

15

(15)

Set-off

(14)

14

0

0

0

(15)

15

0

(27)

26

0

1

0

0

(In € million)

Securities

Net deferred tax assets (liabilities)

Airbus / Financial Statements 2021

495

4. Notes to the IFRS Company Financial Statements /Deferred income taxes as of 31 December 2020 are related to the following assets and liabilities:

1 January 2020

Other
movements

Movement
throughincomestatement

31 December 2020

OCI

Deferredtax benefit(expense)

Deferredtax
assetsDeferredtax
liabilities

Deferredtax
assetsDeferredtax
liabilities

Securities

0

(50)

9

0

0

0

(41)

Financial instruments

0

(6)

0

0

10

4

0

(In € million)

OthersNet operating loss and tax loss carry forwards

22

0

0

0

(12)

10

0

Deferred tax assets (liabilities) before offsetting

22

(56)

9

0

(2)

14

(41)

Set-off

(22)

22

0

0

0

(14)

14

0

(34)

9

0

(2)

0

(27)

Net deferred tax assets (liabilities)

Details of deferred tax recognised cumulatively in equity are as follows:
31 December
2021

2020

Financial instrument at fair value through OCI

(15)

(41)

Total

(15)

(41)

(In € million)

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

2021

2020

NOL

292

38

0

0

Tax effect75

10

Valuation allowances

(75)

0

0

10

Tax credit carry forwards

Deferred tax assets on NOLs and tax credit carry forwards

As of 1 January 2022, tax losses can be carried forward indeﬁnitely but proﬁts in one year which exceed € 1 million will only beoffsettable for up to 50 per cent of that higher taxable proﬁt against losses, minus an amount of € 1 million.

96

Airbus / Financial Statements 2021

4. Notes to the IFRS Company Financial Statements /4.3 Operational Assets and Liabilities
9.

Investments in Subsidiaries, Associates and Participations
Subsidiaries

Associates

Participations

Total

15,84521

1,094

16,960

28

28

0

56

Disposals

(7)

0

0

(7)

Impairment

(187)

0

0

(187)

(In € million)

Balance at 1 January 2020
AdditionsShare-based payment (IFRS 2)

42

0

0

42

Fair value changes through Profit or Loss

0

0

(174)

(174)

15,72149

920

16,690

550

0

0

550

Disposals

(3)

0

0

(3)

Impairment

(21)

0

0

(21)

Share-based payment (IFRS 2)

62

0

0

62

Fair value changes through Profit or Loss

0

0

57

57

16,30949

977

17,334

Balance at 31 December 2020
Additions

Balance at 31 December 2021

Investments in Subsidiaries, Associated Companies and Participations
Investments in subsidiaries and associated companies are statedat cost, less impairment. Dividend income from the Company’s
subsidiaries and associated companies is recognised when theright to receive payment is established.
The participations are stated at fair value with changes in fairvalue 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 isan 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 andassociated companies may include, respectively, management’s
downward adjustment of the strategic plan, a signiﬁcant decreasein the share price of a publicly listed company or a signiﬁcantdecrease in future sales. Further indications for impairment of
its investments may include other areas where observable data
indicates that there is a measurable decrease in the estimatedfuture cash ﬂ ows. These determinations require signiﬁ cantjudgement. In making this judgement, management evaluates,
among other factors, the ﬁnancial performance of and businessoutlook for its investments, including factors such as industry
and sector performance, changes in technology and operationaland ﬁnancing cash ﬂow.
If any indication for impairment exists, the recoverable amount of
the investments is estimated in order to determine the amount,
if any, of the impairment loss. An investment is impaired if
its recoverable amount is lower than its carrying value. The
recoverable amount is deﬁned as the higher of an investment’s
fair value less costs of disposal and its value in use.

The determination of the investment’s value in use is basedon calculations using pre-tax cash ﬂow projections based on
ﬁnancial budgets approved by management covering a ﬁve-year
period. Cash ﬂows beyond the ﬁve-year period are extrapolatedusing estimated growth rates. The discounted cash ﬂow method
is used to determine the recoverable amount of a CGU to which
its investments in subsidiaries and associated companies
belong. The discounted cash ﬂow method is particularly sensitive
to the selected discount rates and estimates of future cash
ﬂows by management. Key assumptions used to determine therecoverable value of the CGU are the expected future labour
expenses, future interest rates, future exchange rates to translate
into euro the portion of future US dollar and pound sterling which
are not hedged and the estimated growth rate of terminal values.
If the recoverable amount of an investment is estimated to be lessthan its carrying amount, the carrying amount of the investment
is reduced to its recoverable amount. Any impairment loss isrecognised immediately in the Income Statement.
Impairment losses recognised in prior periods shall be reversed
only if there has been a change in the estimates or external market
information used to determine the investment’s recoverable
amount since the last impairment loss was recognised. The
recoverable amount shall not exceed the carrying amount thatwould have been determined had no impairment loss beenrecognised in prior years.

4

The annual impairment test performed in 2021 led to an
impairment charge of € 21 million (2020: € 187 million).

Airbus / Financial Statements 2021

97

4. Notes to the IFRS Company Financial Statements /Change of Investments in Subsidiaries and Associates
On 31 December 2021, Airbus SE merged with its wholly
owned subsidiary Airbus Finance BV, under a universal title ofsuccession. As a consequence, all assets and liabilities of theformer Airbus Finance BV have been acquired by Airbus SE andrecognised at book value, and a gain on the merger of € 10 million
has been recorded though Proﬁt and Loss.
On 16 December 2021, Airbus SE made a further capital
contribution of € 500 million into Airbus Defence andSpace GmbH.
On 21 September 2021, Airbus SE made a further capital
contribution of € 21 million into Skytra Ltd.
During the year 2021, Airbus SE made further capital contributions
into Airbus Ventures Fund II for a total amount of € 10 million(2020: € 15 million).
During the year 2021, Airbus SE made further capital contributions
into Airbus Ventures Fund III for a total amount of € 18 million(2020: € 13 million). During the year 2021, new partner had

invested into Airbus Venture Fund III for a total commitmentsof US$ 10 million. Consquently, Airbus SE now holds 61.5% ofAirbus Venture Fund.
In November 2020, Cobham plc / Advent International sold its
part in Air Tanker consortium to the other investors who jointly
exercice their pre-emption right on a pro-rata basis (€ 28 million).
Consequently, Airbus SE now holds 46% in Air Tanker Holdings
and 29% in Air Tanker Services.
During the year 2020, Airbus SE made further capital contributions
into Airbus Ventures Fund II for a total amount of € 15 million(2019: € 26 million).
During the year 2020, Airbus SE made further capital
contributions into Airbus Ventures Fund III for a total amount of€ 13 million (2019: € 23 million). During the year 2020, new partner
had invested into Airbus Venture Fund III for total commitmentsof US$ 50 million. Consquently, Airbus SE now holds 66% of
Airbus Venture Fund III (€ 7 million).

Information on principal investments of the Company:
2021

2020
%

Head office100.00100.00

Aero Ré S.A.

Bertrange (Luxembourg)

88.71

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)

0.00

100.00Airbus Finance B.V. (1)Leiden (Netherlands)

0.00

100.00Airbus Group Limited (2)London (UK)100.00100.00Airbus Group Proj B.V.

Leiden (Netherlands)

95.78

95.78

Airbus S.A.S.

Toulouse (France)

9.90

9.90

Dassault Aviation S.A.

Paris (France)

100.00100.00Premium Aerotec GmbH

Augsburg (Germany)

Percentages represent share held directly by Airbus SE(1) Merge of Airbus Finance BV with Airbus SE in 2021.
(2) Liquidation in 2021.

98

Company

Airbus / Financial Statements 2021

4. Notes to the IFRS Company Financial Statements /10.

Financial Assets and Financial Liabilities

Financial assets at 31 December 2021 and 2020:
31 December(In € million)

2021

2020

Long-term loans Airbus companies (1)

1,389

1,345

0

0

Positive fair values of derivative financial instruments

2,931

2,424

Non-current financial assets

4,320

3,769

Positive fair values of derivative financial instruments

1,981

1,136

9

122

Long-term loans external

Current portion long-term loans Airbus companies(1)

11,239

11,167

Current financial assets

13,22912,425

Total

17,54916,194Current accounts Airbus companies(1) The receivables from subsidiaries include mainly transactions in connection with the cash pooling in Airbus SE. Terms and conditions are in agreement with the prevailing market
environment.

31 December
2021(In € million)

2020

Negative fair values of derivative financial instruments

2,836

2,023

Non-current financial liabilities

2,836

2,023

Negative fair values of derivative financial instruments

1,982

1,143

Current accounts Airbus companies (1)30,75625,527

Current financial liabilities

32,73826,670Total

35,574

28,693(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 prevailing market
environment.

11.

Commitments and Contingencies

Off-Balance Sheet Commitments
Airbus SE issued guarantees on behalf of Airbus companies
in the amount of € 10,858 million (2020: € 8,181 million). The
commitments of these companies to third parties mainly relate
to their operating business as described in “– Note 20 Property,
Plant and Equipment”, “– Note 27 Sales Financing Transactions”
and “– Note 37 Financial Instruments” of the Company’s
Consolidated Financial Statements.
On 8 December 2015, Airbus SE entered into a partnershipagreement to establish a corporate venture capital fund, dubbed
Airbus Group Ventures, as well as a technology and business
innovation center in Silicon Valley with a total commitment amountof US$ 150 million. The remaining commitment is US$ 10 million
at 31 December 2021.

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 amountof US$ 100 million. The remaining commitment is US$ 49 million
at 31 December 2021.
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.

Airbus / Financial Statements 2021

499

4. Notes to the IFRS Company Financial Statements /4.4 Employees Costs and Beneﬁts
12.

Number of Employees

The average number of the persons employed by the Company in 2021 was 1 (2020: 1). The employee is situated in the Netherlands.

4.5 Capital Structure and Financial Instruments
13.

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:(In number of shares)

Issued as at 1 January
Issued for ESOP
Issued as at 31 December
Treasury shares

2021

2020

784,149,270

783,173,115

1,934,420

976,155

786,083,690

784,149,270(454,735)(432,875)

Outstanding at 31 December

785,628,955

783,716,395

Authorised shares

3,000,000,000

3,000,000,000

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 € 1,934,420(in 2020: € 976,155) 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 23 March 2020, the Company has decided the withdrawalof 2019 dividend proposal with cash value of € 1.4 billion in
response to the COVID-19 pandemic (see “– Note 2: Impact of the
COVID-19 pandemic”). For the ﬁscal year 2021, the Company’s
Board of Directors proposes a cash distribution payment of€ 1.50 per share.

100

Airbus / Financial Statements 2021

Legal reserves include:– change from ﬁnancial assets at fair value (see “– Note 15.2:
Carrying Amounts and Fair Values of Financial Instruments”);– change in fair value of derivatives designated as cash ﬂow
hedges (see “– Note 15.2: Carrying Amounts and Fair Valuesof Financial Instruments”).
According to Dutch law, the OCI is considered to be a Legal
Reserve and therefore distribution is restricted.
Treasury shares represent the amount paid or payable for own
shares held in treasury. During 2021, the number of treasury
stock held by the Company increased to 454,735 compared
to 432,875 as of 31 December 2020, mainly due to the sharebuybacks partly offset by vested shares in 2021 under LTIP
2017 (see “– Note 33: Share-based Payment” of the Consolidated
Financial Statements). No shares were sold back to the market
nor cancelled in 2021 (2020: 0 shares).

4. Notes to the IFRS Company Financial Statements /Authorisations Granted by the Annual’ General Meetingof Airbus SE Held on 14 April 2021
On 14 April 2021, the Annual General Meeting (“AGM”) of theCompany authorised the Board of Directors, for a period expiring
at the AGM to be held in 2021, to issue shares and to grantrights to subscribe for shares in the Company’s share capitalfor the purpose of:– ESOPs and share-related LTIPs, provided that such powers
shall be limited to an aggregate of 0.14% of the Company’s
authorised share capital (see “– Note 33: Share-Based
Payment”);– funding the Company and its subsidiaries, provided thatsuch powers shall be limited to an aggregate of 0.3% of
the Company’s authorised share capital (see “– Note 37.3:
Financing Liabilities”).

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.
Also on 14 April 2021, 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 ofthe price 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.
Furthermore, the AGM authorised both the Board of Directors
and the CEO, with powers of substitution, to establish the exact
number of the relevant shares to be cancelled.

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 2021 and 2020 is as follows:(In € million)

2021

2020

Consolidated equity

9,466

6,445

OCI - Restatement of investments from Consolidated to Company Financial Statements

1,864(1,731)Retained Earnings - Restatement of investments from Consolidated to Company Financial Statements(2,610)

4,683

Retained Earnings - Valuation investments at historical cost

1,487

1,487

Retained Earnings - Impairment of financial assets(1,029)(1,685)Company’s equity

9,178

9,199

The difference between the net income according to the Consolidated Financial Statements and Company’s Financial Statements
for the year ended 31 December 2021 and 2020 is as follows:(In € million)

2021

2020

Consolidated net income

4,213(1,133)

Income from investments according to Consolidated Financial Statements(4,571)

4,668

Income from investments according to Company Financial Statements

17

42

Loss on / Impairment of financial assets

244

(412)

Other valuation differences

(17)

(22)

(114)

3,143

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

4

Airbus / Financial Statements 2021

101

4. Notes to the IFRS Company Financial Statements /14.

Cash, Securities and Financing Liabilities

14.1

Net Cash
31 December(In € million)

2021

2020
10,671

Cash and cash equivalents

13,145Current securities

1,245

1,592

Non-current securities

6,477

5,021

Gross cash position

20,867

17,284

Short-term financing liabilities(591)(1,156)Long-term financing liabilities(10,328)(11,356)

Total

9,948

4,772

The net cash position on 31 December 2021 amounted to € 9,948 million (2020: € 4,772 million), with a gross cash position of€ 20,867 million (2020: € 17,284 million).

14.2

Cash and Cash Equivalents

Cash and cash equivalents are composed of the following elements:
31 December
2021(In € million)

Bank account and petty cash
Short-term securities (at fair value through profit or loss)
Short-term securities (at fair value through OCI)
Short-term investment (at amortised cost)

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 operating activities amounted to € -119 million
in 2021. See IFRS Company Statement of Cash Flows for theyears ended 31 December 2021 and 2020.

14.3

2020

537

405

12,075

9,654

533

512

0

100

13,145

10,671

Cash used for investing activities amounted to € -1,317 million,
mainly reﬂecting the net investment in securities € 1,160 million
euros.
Cash used for ﬁnancing activities amounted to € 3,929 million andreﬂects the pre-payment of a US$ 1 billion bond issued on 9 April
2013 and the repayment of the exchangeable bonds convertible
into Dassault Aviation shares for an amount of € 1.0 billion. See“– Note 14.4: Financing Liabilities”.

Securities
31 December(In € million)

2020

Current securities at fair value through OCI

1,245

1,592

Non-current securities at fair value through OCI

6,477

5,021

Total securities

7,721

6,613

The majority of the Company’s securities consists of debt
securities and are classiﬁ ed at fair value through OCI (see“– Note 37.2: Carrying Amounts and Fair Values of Financial
Instruments” of the Consolidated Financial Statements).
The Company’s securities portfolio amounts to € 7,721 millionand € 6,613 million as of 31 December 2021 and 2020,
respectively. The security portfolio contains a non-current
portion of € 6,477 million (2020: € 5,021 million), and a current
portion of € 1,245 million (2020: € 1,592 million).

102

2021

Airbus / Financial Statements 2021

Included in the securities portfolio as of 31 December 2021 and2020, respectively, are corporate and government bonds bearing
either ﬁxed rate coupons (€ 7,497 million nominal value; 2020:€ 6,357 million) or ﬂoating rate coupons (€ 50 million nominal
value; 2020: € 50 million).
When the Company enters into securities lending or other ﬁnancing
activities that involve the pledging of securities as collateral, thesecurities pledged continue to be recognised on the balance
sheet. As of 31 December 2021, securities for an amount of€ 0 million were pledged as collateral for borrowings from banks(2020: € 99 million).

4. Notes to the IFRS Company Financial Statements /14.4

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 fromjoint ventures and other parties.
Carrying amountPrincipal
amount31 December
2020

Coupon orinterest rate

Effective
interest
rate(In million)

2021

Maturity

Additional features

Loans from Airbus Finance B.V.
AGFBV (1) 10 years (EMTN)€ 1,000€0€ 1,047

2.40%

2.45%

Apr. 2024

Interest rate swapped
into 3M Euribor +0.68%

AGFBV (1) 15 years (EMTN)

€ 500

€0

€ 571

2.15%

2.24%

Oct. 2029

Interest rate swapped
into 3M Euribor +0.84%

AGFBV (1) 10 years (EMTN)

€ 600

€0

€ 626

0.91%

1.01%

May 2026

Interest rate swapped
into 3M Euribor +0.50%

AGFBV (1) 15 years (EMTN)

€ 900

€0

€ 983

1.41%

1.53%

May 2031

Interest rate swapped
into 3M Euribor +0.66%

AGFBV US$ Loan 10 years

US$ 1,000

€0

€ 845

2.72%

2.80%

Apr. 2023

Interest rate swapped
into 3M US-Libor +0.68%

€0

€ 81

3M US-Libor+1.15%

4.84%

Jan. 2021

Interest rate swapped
into 4.76% fixed

€ 591

€0

Loans from financial institutions
DBJ 10 years

US$ 300

Airbus Bank GmbHBond
EMTN 10 years (1)€ 1,000€ 1,043

€0

2.38%

2.42%

Apr. 2024

Interest rate swapped
into 3M Euribor +1.40%

EMTN 15 years (1)

€ 500

€ 525

€0

2.12%

2.21%

Oct. 2029

Interest rate swapped
into 3M Euribor +0.84%

EMTN 10 years (1)

€ 600

€ 645

€0

0.88%

0.98%

May 2026

Interest rate swapped
into 3M Euribor +0.50%

EMTN 15 years (1)

€ 900

€ 903

€0

1.38%

1.50%

May 2031

Interest rate swapped
into 3M Euribor +0.66%

EMTN 5 years

€ 750

€ 732

€ 745

1.63%

1,80%

Apr. 2025

Interest rate swapped
into 3M Euribor +2.01%

EMTN 6 years€ 1,250€ 1,215€ 1,243

1,38%

1,47%

Jun. 2026

Interest rate swapped
into 3M Euribor +1.66%

EMTN 8 years

€ 750

€ 725

€ 745

2.00%

2.10%

Apr. 2028

Interest rate swapped
into 3M Euribor +2.15%

EMTN 10 years€ 1,250€ 1,200€ 1,237

1.63%

1,74%

Jun. 2030

Interest rate swapped
into 3M Euribor +1.61%

EMTN 12 years€ 1,000

€ 957

€ 987

2,38%

2.49%

Apr. 2032

Interest rate swapped
into 3M Euribor +2.24%

EMTN 20 years€ 1,000

€ 958

€ 988

2.38%

2,44%

Jun. 2040

Interest rate swapped
into 3M Euribor +1.93%

Exchangeable bond
5 years€ 1,078€0€ 1,075

0.00%

0.33%

June 2021

Exchangeable into Dassault
Aviation SA shares at€ 1,306.25 per shareand issued at 103.75%

US$ Bond 10 years

US$ 750

€ 694

€ 672

3.15%

3.20%

Apr 2027

Interest rate swapped
into 3M Libor +0.87%

US$ Bond 30 years

US$ 750

€ 731

€ 667

3.95%

4.02%

Apr 2047

Interest rate swapped
into 3M Libor +1.61%

10,91912,512

10,328

11,356

591

1,156

Total
Thereof non-current
financing liabilities
Thereof current
financing liabilities

4(1) D ue to the merge of Airbus Finance BV, the existing loans between Airbus SE and the subsidiary have been acquired and cancelled and the bonds of Airbus Finance BVfrom third parties have also been acquired (see “– Note 9: Investments in Subsidiaries, Associates and Participations”).

Airbus / Financial Statements 2021

103

4. Notes to the IFRS Company Financial Statements /Long-term financing liabilities, mainly comprising bonds and liabilities to ﬁnancial institutions, decreased by € 1,028 million
to € 10,328 million (2020: € 11,356 million), mainly due to pre-payment of a US$ 1 billion bond issued on 9 April 2013 in the US
institutional market with an original maturity of ten years.
Short-term financing liabilities decreased by € 565 million to € 591 million (2020: € 1,156 million), mainly due to the repayment of
the exchangeable bonds to be convertible into Dassault Aviation shares issued on 14 June 2016 for an amount of € 1.0 billion andthe repayment of the DBJ loan for an amount of US$ 100 million. As part of Group-wide liquidity management, Airbus SE agreed
on a repo transaction (€ 591 million) with Airbus Bank to increase ﬂexibility and short-term borrowing capacity over year-end.
Additionally, the transaction supports the lending capacity of Airbus Bank to the economy. This particularly beneﬁts the Airbus
ecosystem through increased lending to Airbus customers and suppliers.
Prior to 2021, the Company issued several euro-denominated bonds under its EMTN programme and three stand-alone
US dollar-denominated bonds on the US institutional market under Rule 144A.
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.
Reconciliation of liabilities arising from ﬁnancing liabilities:
Non-cash movements
Balance at
1 January
2021

Cash flows

Bonds and commercial papers

8,358(1,078)

(46)

102

2,992

Liabilities to financial institutions

81

(82)

0

1

0

0

4,073

(233)

(279)

10

(2,979)591

12,512(1,394)

(325)

113

14

10,919(In € million)

Loans from Subsidiaries

Total

Fair value
Foreignthroughexchange
profit or loss movements

Others(1)

Balance at
31 December
2021
10,328(1) Due to the merge of Airbus Finance BV, the existing loans between Airbus SE and the subsidiary have been acquired and cancelled and the bonds of Airbus Finance BVfrom third parties have also been acquired (see “– Note 9: Investments in Subsidiaries, Associates and Participations”).

Non-cash movements
Balance at
1 January
2020

Cash flows

Bonds and commercial papers

2,435

5,940

83

Liabilities to financial institutions

89

0

0

Loans from Subsidiairies

4,056

0

Total

6,580

5,940

(In € million)

104

Airbus / Financial Statements 2021

Fair value
Foreignthroughexchange
profit or loss movements

OthersBalance at
31 December
2020

(113)

13

8,358

(8)

0

81

89

(75)

3

4,073

172

(196)

16

12,512

4. Notes to the IFRS Company Financial Statements /15.

Information about Financial Instruments

15.1

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 rate risk, commodity price risk or equity price risk.
The Company’s practice is to set up a derivative contract witha subsidiary and at the same time enter into a back-to-backderivative transaction with a bank. Contracts with subsidiaries
being thus mirrored (on a one-to-one basis) by contracts withbanks, the Company’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 and recognised
as other ﬁnancial assets and ﬁnancial liabilities as disclosed
in “– Note 10 Financial Assets and Liabilities” of the Company
Financial Statements.
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.

A few interest rate swaps that have been entered into asa hedge of certain of the Company variable rate debt (seeNote 37.3: “Financing Liabilities”) are accounted for under
the cash flow hedge model. Related fair value gains arerecognised in OCI and reclassiﬁed to proﬁt or loss when thehedged interest payments affect proﬁt or loss. 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 mediumterm bonds. For its ﬁnancial instruments portfolio, the Company
has an Asset Liability Management Committee in place thatmeets regularly and aims to limit the interest rate risk on a fairvalue basis through a value-at-risk approach, from which resultsa hedge ratio that is however not actively steered.

Market Risk

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.

Foreign exchange risk — The Company manages a longterm 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’ ﬁ rm commitments and highly probable
forecast transactions. As explained above, owing to theCompany’s back-to-back approach, its own exposure to foreignexchange 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.
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, witha hedge ratio of 1:1.

Interest rate risk — The Company uses an asset-liability
management approach with the objective to limit its interest raterisk. 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 typesof interest rate derivatives, such as interest rate swaps andinterest rate futures contracts, in order to minimise risks andﬁnancial impacts.

Sensitivities of market risks — The approach used to measure
and control market risk exposure within the Company’s ﬁnancial
instrument portfolio is amongst other key indicators the valueat-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 38.1: Financial Risk
Management” of the Consolidated Financial Statements.

The Company’s overall ﬁnancial risk management activities andtheir objectives are described in detail in section 37.1 “Financial
Risk Management” of the Consolidated Financial Statements.

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 is part of the Company risk management
process, which is more fully described in “– Note 37.1: Financial
Risk Management” of the Consolidated Financial Statements.

Airbus / Financial Statements 2021

4105

4. Notes to the IFRS Company Financial Statements /A summary of the VaR position of the Company’s ﬁnancial instruments portfolio at 31 December 2021 and 31 December 2020 is
as follows:
Total
VaR

Equityprice VaR

Currency
VaR

Interest
rate VaR

Foreign exchange hedges

8

0

8

1

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

67

58

4

51

Equity swaps

5

5

0

0

(In € million)

31 December 2021

Diversification effect

(12)

(2)

(8)

(1)

All financial instruments

68

61

4

51

Foreign exchange hedges

20

0

20

0

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

88

63

17

43

Equity swaps

4

4

0

0

31 December 2020

Diversification effect

(25)

0

(35)

0

All financial instruments

87

67

2

43

The decrease in the total VaR of € 19 million (2020: € 87 million) is mainly attributable to the fall of foreign exchange treasury swap
at Airbus SE level.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 theexternal derivative instruments are offset by corresponding opposite market risks ofintragroup transactions.

Liquidity Risk
The Company’s policy is to maintain sufﬁcient cash and cash equivalents at any time to meet its present and future commitments
as they fall due. It manages its liquidity by holding adequate volumes of liquid assets and maintains a committed revolving credit
facility (€ 6.0 billion as of 31 December 2021), the maturity of which has been extended to 21 October 2024, in addition to the cash
inﬂow generated by its operating business. For information on how the Company monitors and manages liquidity risk, please referto “– Note 37.1: Financial Risk Management” of the Consolidated Financial Statements.
The contractual maturities of the Company ﬁnancial liabilities, based on undiscounted cash ﬂows and including interest payments,
if applicable, are as follows:
Carrying
amountContractual
cash flows

Non-derivative financial liabilities(10,919)(13,162)(803)

Derivative financial liabilities(4,818)(6,260)(1,938)(15,737)(19,422)(2,741)

Non-derivative financial liabilities(12,512)(14,656)

Derivative financial liabilities(3,166)(1,869)(15,678)(16,525)(In € million)

2 years3 years

3 years4 years(211)(1,211)(937)(2,025)(7,975)(1,678)(1,244)

(728)

(440)

(232)

(1,889)(2,455)(1,665)(2,465)(8,207)(1,390)(230)(1,045)(1,208)(934)(9,847)

(638)

(537)

(605)

(75)

(10)

(4)

(2,028)(767)(1,650)(1,283)(944)(9,851)< 1 year

1 year2 years

4 years- More than
5 years
5 years

31 December 2021

Total
31 December 2020

Total

106

Airbus / Financial Statements 2021

4. Notes to the IFRS Company Financial Statements /Credit Risk
The Company is exposed to credit risk to the extent of nonperformance by its counterparts with regard to financial
instruments or issuers of financial instruments for grosscash 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 the Company.
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 developments on
their performance and takes appropriate action on foreseeable
adverse development based on pre-deﬁned procedures andescalation levels.
Sales of products and services are made to customers after
having conducted appropriate internal credit risk assessment.
The booked amount of ﬁnancial assets represents the maximum
credit exposure. The credit quality of ﬁnancial assets can beassessed by reference to external credit rating (if available) orinternal assessment of customers’ creditworthiness by way ofinternal risk pricing methods.
In 2021, the trade receivables, neither past due nor impaired
amount to € 19 million (in 2020: € 492 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 ona ﬁnancial instrument has increased signiﬁcantly since initialrecognition, as described in “– Note 37.7: Impairment Losses”
of the Consolidated Financial Statements. In 2021, an amountof € -1 million of impairment losses on financial assets is
recognised in Proﬁt and Loss (2020: € 224 million).
For further information relating to gross credit risk and impairment
see “– Note 15.7: Impairment Losses”.

15.2

Carrying Amounts and Fair
Values of Financial Instruments

Financial instruments — The Company’s ﬁnancial assets mainly
consist of cash, short to medium-term deposits and securities.
The Company’s ﬁnancial liabilities include intragroup liabilities,
obligations towards ﬁnancial institutions and issued bonds. The
Company has the same classiﬁcation and accounting policies
as the Company. 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 the following
categories: (i) at fair value through OCI, (ii) at fair value throughproﬁt and loss and (iii) at amortised cost. Classiﬁcation depends
on the Company’s business model for managing the ﬁnancial
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 2021:(In € million)

Fair value
through
profit or loss

Fair value
through OCI

Financial assets
and liabilities
at amortised cost

Financial
instrument
Total

Amortised
cost

Book
value

Fair
value

Fair
value

AssetsOther investments and long-term financial assets
Equity investments
Loans
Trade receivables

977

0

0

0

977

977

0

0

1,398

1,427

1,398

1,427

0

0

19

19

19

19

4,912

0

0

0

4,912

4,912

0

0

11,23911,23911,23911,239Other financial assets
Derivative instruments
Current account Group companies
Securities

0

7,721

0

0

7,721

7,721

Cash and cash equivalents

12,075

533

537

537

13,145

13,145

Total

17,964

8,254

13,193

13,222

39,411

39,4404

Liabilities
Financing liabilities
Bonds and commercial papers

0010,328

11,145

10,328

11,145

Liabilities to financial institutions and others

0

0

0

0

0

0

Internal loans payable

0

0

591

0

591

0

4,818

0

0

0

4,818

4,818

0

0

30,75630,75630,75630,7564,818

041,67541,90146,49346,719Other financial liabilities
Derivative instruments
Current accounts Group companies

Total

Airbus / Financial Statements 2021

107

4. Notes to the IFRS Company Financial Statements /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 2020:(In € million)

Financial assets
and liabilities
at amortised cost

Financial
instrument
Total

Fair value
through
profit or loss

Fair value
through OCI

Amortised
cost

Fair
value

Book
value

Fair
value

920

0

0

0

920

920

0

0

1,467

1,568

1,467

1,568

0

0

492

492

492

492

3,560

0

0

0

3,560

3,560

0

0

11,167

11,167

11,167

11,167

0

6,613

0

0

6,613

6,613

AssetsOther investments and long-term financial assets
Equity investments
Loans
Trade receivables
Other financial assets
Derivative instruments
Current account Group companies
Securities
Cash and cash equivalents

9,654

512

494

494

10,660

10,66014,134

7,125

13,62013,721

34,87934,980Bonds and commercial papers

00(8,358)(9,185)(8,358)(9,185)

Liabilities to financial institutions and others

0

0

(81)

(82)

(81)

(82)

Internal loans payable00(4,073)(4,106)(4,073)(4,106)(3,166)000(3,166)(3,166)00(25,527)(25,527)(25,527)(25,527)(3,166)0(38,039) (38,900)(41,205)(42,066)

Total
Liabilities
Financing liabilities

Other financial liabilities
Derivative instruments
Current accounts Group companies

Total

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.
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 2021 and 2020, respectively:
2021(In € million)

2020

Level 1

Level 2

Total

Level 1

Level 2

Total

977

0

977

920

0

920

0

4,912

4,912

0

3,560

3,560

7,721

0

7,721

6,613

0

6,613

Financial assets measured at fair value
Equity instruments
Derivative instruments
Securities

12,075533

12,6089,654

512

10,166

20,773

5,445

26,21817,187

4,072

21,259Derivative instruments

0

4,818

4,818

0

(3,166)(3,166)

Other financial liabilities

0

0

0

0

0

0

0

4,818

4,818

0

(3,166)(3,166)

Cash equivalents

Total
Financial liabilities measured at fair value

Total

108

Airbus / Financial Statements 2021

4. Notes to the IFRS Company Financial Statements /Financial Assets Designated at Fair Value through Profit or Loss
The following types of ﬁnancial assets held at 31 December 2021 and 2020, respectively, are designated at fair value throughproﬁt or loss:
Nominal amountat initial recognition at(In € million)

31 December 2021

31 December 2020

12,075

9,654

Designated at fair value through profit or loss at recognition
Money market funds (accumulating)
Securities

Total

0

0

12,075

9,654

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

15.3

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 paymentof 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
2021 and 31 December 2020, respectively:

Derivative instruments(In € million)

Gross amounts
recognisedGross
set off in theamounts
FinancialrecognisedStatements

Related amounts not
set off in the Statementof Financial Position

Net amounts
presented in
the Financial
Statements

Financial
instruments

Cashcollateral
received

Net amount

31 December 2021
Financial assets

1,060

0

1,060

(835)

0

225

Financial liabilities

4,230

0

4,230

(835)

0

3,395

Financial assets

3,895

0

3,895

(1,520)(77)(2,298)Financial liabilities

2,305

0

2,305

(1,520)0785

31 December 2020

15.4

Notional Amounts of Derivative Financial Instruments

The notional amount of interest rate contracts are as follows, speciﬁed by year of expected maturity:
Remaining period
1 year

2 years

3 years

4 years

5 years

6 years

7 years> 7 years

Total

Interest rate contracts

0

0

1,000

750

1,850

1,324

750

4,650

10,324

Interest rate future contracts

0

0

0

0

0

0

0

0

0

Interest rate contracts

0

0

815

1,000

0

600

1,222

1,400

5,037

Interest rate future contracts

0

0

0

0

0

0

0

0

0

(In € million)

31 December 2021

431 December 2020

The notional amounts of equity swaps are as follows:
Remaining period
1 year

2 years

3 years

4 years> 4 years

Total

31 December 2021

18

17

18

10

0

63

31 December 2020

32

23

17

8

0

80

(In € million)

Airbus / Financial Statements 2021

109

4. Notes to the IFRS Company Financial Statements /15.5

Derivative Financial Instruments and Hedge Accounting Disclosure

The following table presents the amounts relating to items designated as hedging instruments, no hedge ineffectiveness as of
31 December 2021 under IFRS 9:
31 December
2021

2020

Carrying values(In € million)

Carrying values

Asset

Liability

Asset

Liability

0

0

0

0

Foreign currency risk
Net forward sales contracts

0

0

0

0

190

93

412

0

Commodity swap risk

0

0

0

0

Equity swap risk

0

0

0

0

190

93

412

0

Foreign exchange options
Interest rate risk

Total

15.6

Net Gains or Net Losses

The Company’s net gains or net losses recognised in proﬁt or loss in 2021 and 2020, respectively are as follows:
31 December
2021(In € million)

2020

Financial assets or financial liabilities at fair value through profit or loss
Held for trading

29

94

Designated on initial recognition

318

(306)

Financial assets at amortised cost (1)

268

(330)

Financial assets at fair value through OCI

20

75

Financial assets at fair value through profit or loss

57

(174)

Financial liabilities measured at amortised cost

(737)

423

Total

(45)

(218)

(1) Including impairment and Expected Credit Losses on Financial assets at amortised cost.

15.7

Impairment Losses

Loss allowances — For its portfolio of debt instruments including
bonds, term deposits and commercial papers, the Company
measures loss allowances at an amount that represents credit
losses resulting from default events that are possible within thenext 12 months, unless the credit risk on a ﬁnancial instrument
has increased signiﬁcantly since initial recognition. In the eventof such signiﬁcant increase in credit risk the Company measuresloss 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.
The Company applies the low credit risk exemption allowing
the Company to assume that there is no signiﬁcant increasein credit risk since initial recognition of a ﬁnancial instrument,

110

Airbus / Financial Statements 2021

if the instrument is determined to have low credit risk at thereporting date. Similarly, the Company has determined that its
trade receivables and contract assets generally have low credit
risk. The Company applies the simpliﬁed approach permitted by
IFRS 9 of measuring expected credit losses of trade receivables
and contract assets on a lifetime basis from initial recognition.
Investment grade instruments — The Company considers
a signiﬁcant increase in credit risk to have occurred, if there isa downgrade 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 initial recognition,
a downgrade by four notches is considered as a signiﬁcant
increase in credit risk.

4. Notes to the IFRS Company Financial Statements /Stage 112-month ECL(In € million)

Stage 2
Life-time ECLStage 3Credit impaired ECL

Total

At 1 January 2021

3.6

93.9

0.0

97.5

Change in financial assets and risk parameters2.9(88.0)

0.0(85.0)At 31 December 2021

6,7

5.9

0.0

12.5

Stage 2
Life-time ECLStage 3Credit impaired ECL

Total

Stage 112-month ECL(In € million)

At 1 January 2020

4.4

0.3

0. 0

4.7

Change in financial assets and risk parameters

(0.8)

93.6

0.0

92.8

At 31 December 2020

3.6

93.9

0.0

97.5

The following impairment losses on ﬁnancial assets are recognised in proﬁt or loss in 2021 and 2020, respectively:(In € million)

Loans

2021

2020

0

(158)

Trade Receivables

0

0

Total

0

(158)

For further information about the impairment on ﬁnancial assets, please refer to “– Note 9: Investments in Subsidiaries, Associates
and Participations” of the Company Financial Statements.

4.6 Other Notes
16.

Auditor Fees

Fees related to professional services rendered by the Company’s auditor, Ernst & Young Accountants LLP, for the ﬁscal year 2020
were € 2,521 thousand (in 2020: € 2,198 thousand). These fees relate to audit services only.

17.

Events after the Reporting Date

No events after Reporting Date.

4

Airbus / Financial Statements 2021

111

Chapter

5
112

Airbus / Financial Statements 2021

5
Other Supplementary
Information

Airbus / Financial Statements 2021

113

5. Other Supplementary Information /1.

Appropriation of Result

Articles 30 and 31 of the Articles of Association provide that the Board 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 theannual accounts from which it appears that the shareholders’ equity of the Company is more than the amount of the issued andpaid-in part of the capital increased by the reserves that must be maintained by law.
It will be proposed at the Annual General Meeting of Shareholders that the loss for the period of € -114 million as shown in theincome statements for the ﬁnancial year 2021 is to be added to retained earnings. For the ﬁscal year 2021, the Company’s Boardof Directors proposes a cash distribution payment of € 1.50 per share.

114

Airbus / Financial Statements 2021