Airbus Annual Report2022

Financial
Statements

2022

This contains an unaudited PDF format version of the annual financial statements and is not the originalannual financial reporting including the audited financial statement 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 2022 has been filedwith the AFM in XHTML format and is available on the AFM’s website (https://www.afm.nl/en/sector/registers/
meldingenregisters/financiele-verslaggeving) as well as on Airbus SE’s website (https://www.airbus.com/en/
investors/financial-results-annual-reports).
In any case of discrepancies between this “PDF format” and the “XHTML format”, the XHTML format prevails.

Airbus SE IFRS – Consolidated Financial Statements

3

Notes to the IFRS Consolidated Financial Statements

13

Airbus SE IFRS - Company Financial Statements

95

Notes to the IFRS Company Financial Statements

101

Other Supplementary Information

127

1

2

Airbus SE IFRS –Consolidated
Financial Statements
Airbus SE – IFRS Consolidated Income Statement for the Years
Ended 31 December 2022 and 2021

4

Airbus SE – IFRS Consolidated Statement of Comprehensive
Income for the Years Ended 31 December 2022 and 2021

5

Airbus SE – IFRS Consolidated Statement of Financial Position
for the Years Ended 31 December 2022 and 2021

6

Airbus SE – IFRS Consolidated Statement of Cash Flows for theYears Ended 31 December 2022 and 2021

8

Airbus SE – IFRS Consolidated Statement of Changes in Equity
for the Years Ended 31 December 2022 and 2021

10

3

1. Airbus SE IFRS – Consolidated Financial Statements

Airbus SE – IFRS Consolidated Income Statement
for the Years Ended 31 December 2022 and 2021
(In € million)

Note

2022

2021

Revenue

13

58,76352,149(48,192)(42,518)

10,571

9,631

(788)

(713)

(1,452)(1,339)

Cost of sales
Gross margin13

Selling expenses
Administrative expenses
Research and development expenses

14(3,079)(2,746)

Other income

15

471

594

Other expenses

15

(590)

(201)

Share of profit from investments accounted for under the equity method

16

134

40

Other income from investments

16

58

76

5,325

5,342

Interest income

180

88

Interest expense

(412)

(334)

Other financial result

(18)

(69)

Profit before financial result and income taxes

Total financial result

17

(250)

(315)

Income taxes

18

(939)

(853)

4,136

4,174

Equity owners of the parent (Net income)

4,247

4,213

Non‑controlling interests

(111)

(39)

€

€

Profit for the period
Attributable toEarnings per share
Basic

19

5.40

5.36

Diluted

19

5.39

5.36

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

4

1. Airbus SE IFRS – Consolidated Financial Statements
Airbus SE – IFRS Consolidated Statement of Comprehensive Income for the Years Ended 31 December 2022 and 2021

Airbus SE – IFRS Consolidated Statement of Comprehensive Income
for the Years Ended 31 December 2022 and 2021
(In € million)

Note

Profit for the period

2022

2021

4,136

4,174

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

32

3,530

2,613

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

18

(320)

(368)

(446)

(115)

56

1

241

134

101

175

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

18

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

38(3,203)(5,131)

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

18

857

1,409

(723)

(103)

22

25

Share of change from investments accounted for under the equity method

122

33

Other comprehensive income, net of tax

237(1,327)

Total comprehensive income for the period

4,373

2,847

Equity owners of the parent

4,485

2,901

Non‑controlling interests

(112)

(54)

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

18

Attributable to:

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

51. Airbus SE IFRS – Consolidated Financial Statements
Airbus SE – IFRS Consolidated Statement of Financial Position for the Years Ended 31 December 2022 and 2021

Airbus SE – IFRS Consolidated Statement of Financial Position
for the Years Ended 31 December 2022 and 2021
Note

2022

2021

Intangible assets

20

16,76816,367

Property, plant and equipment

21

16,505

16,53637

41(In € million)
AssetsNon‑current assets

Investment property
Investments accounted for under the equity method

10

2,067

1,672

Other investments and other long‑term financial assets

22

4,190

4,001

Non‑current contract assets

23

26

27

Non‑current other financial assets

26

781

691

Non‑current other assets

27

1,872

901 (1)

Deferred tax assets

18

4,683

4,323

Non‑current securities

37

6,013

6,794

52,942

51,353

Total non‑current assets
Current assets
Inventories

24

32,20228,538Trade receivables

23

4,953

4,957 (1)Current portion of other long‑term financial assets

22

665

537

Current contract assets

23

1,501

1,377

Current other financial assets

26

2,542

1,451

Current other assets

27

2,850

2,393

704

552

Current tax assets
Current securities

37

1,762

1,317

Cash and cash equivalents

37

15,823

14,57263,002

55,6940

0

115,944

107,047

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

Total assets(1) 2021 figures restated in accordance with 2022 presentation.

6

1. Airbus SE IFRS – Consolidated Financial Statements
Airbus SE – IFRS Consolidated Statement of Financial Position for the Years Ended 31 December 2022 and 2021

2022

2021

Capital stock

789

787

Share premium

3,837

3,712

Retained earnings

13,408

6,834

Accumulated other comprehensive income(5,016)(1,822)

(68)

(45)

12,950

9,466

32

20

35

12,982

9,486

Non‑current provisions

25

6,896

10,771

Long‑term financing liabilities

37

10,631

13,094

Non‑current contract liabilities

23

22,044

18,620Non‑current other financial liabilities

26

10,117

6,562

Non‑current other liabilities

27

498

583

Deferred tax liabilities

18

164

116

Non‑current deferred income

178

Total non‑current liabilities

50,36749,754(In € million)

Note

Equity and liabilities
Equity attributable to equity owners of the parent

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

Liabilities
Non‑current liabilities

Current liabilities
Current provisions

25

4,127

4,510

Short‑term financing liabilities

37

2,142

1,946

Trade liabilities

23

13,261

9,693

Current contract liabilities

23

23,86923,906

Current other financial liabilities

26

4,073

2,532

Current other liabilities

27

3,803

3,532

Current tax liabilities

817

1,057

Current deferred income

503

631

Total current liabilities

52,59547,80700

Total liabilities

102,962

97,561

Total equity and liabilities

115,944

107,047

Disposal group of liabilities classified as held for sale

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

71. Airbus SE IFRS – Consolidated Financial Statements
Airbus SE – IFRS Consolidated Statement of Cash Flows for the Years Ended 31 December 2022 and 2021

Airbus SE – IFRS Consolidated Statement of Cash Flowsfor the Years Ended 31 December 2022 and 2021
2022

2021

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

4,247

4,213

Loss for the period attributable to non‑controlling interests

(111)

(39)

Interest income

(180)

(88)

Interest expense

412

334

Interest received

250

111

Interest paid

(322)

(330)

Income tax expense

939

853

Income tax paid

(790)

(321)

2,716

2,325

(569)

(863)

25

(116)

(133)

(40)

(1,016)(1,934)

(601)

(533)

1,421

1,067

24, 37(3,218)2,405

Trade receivables

23

(115)

379

Contract assets and liabilities

37

3,300

(2,326)

Trade liabilities

23, 37

3,309

194

Other assets and liabilities

26, 27(1,855)

415

6,288

4,639

(2,464)(1,928)

101

212

(188)

(25)

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

(777)

(577)

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

459

396

(In € million)

Note

Operating activities

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

Depreciation and amortisation

12

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

32

Change in other operating assets and liabilities
Inventories

Cash provided by operating activities

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

Dividends paid by companies valued at equity

10

100

79

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

9

0

310

Payments for investments in securities

37(1,851)(3,049)Proceeds from disposals of securities

37

1,507

1,863

(3,113)(2,719)Cash (used for) investing activities

891. Airbus SE IFRS – Consolidated Financial Statements
Airbus SE – IFRS Consolidated Statement of Cash Flows for the Years Ended 31 December 2022 and 2021

Note

2022

2021

Increase in financing liabilities

37

171

0

Repayment of financing liabilities

37(1,348)(2,295)

Cash distribution to Airbus SE shareholders

35(1,181)0

Dividends paid to non‑controlling interests(1)0

Payments for liability for puttable instruments

135

0

145

138

(36)

(22)

(2,115)(2,179)

191

392

Net increase in cash and cash equivalents

1,251

133

Cash and cash equivalents at beginning of period

14,572

14,43915,823

14,572(In € million)

Financing activities

Changes in capital and non‑controlling interests

35

Change in treasury shares
Cash (used for) financing activities
Effect of foreign exchange rate changes on cash and cash equivalents

Cash and cash equivalents at end of period37

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

91. Airbus SE IFRS – Consolidated Financial Statements
Airbus SE – IFRS Consolidated Statement of Changes in Equity for the Years Ended 31 December 2022 and 2021

Airbus SE – IFRS Consolidated Statement of Changes in Equity
for the Years Ended 31 December 2022 and 2021
Equity attributable to equity holders of the parent
Accumulated othercomprehensive income(In € million)

Note

FinancialassetsCapitalShare Retainedat fair
stock premium earnings
value

Cash
flow
hedgesForeign
Currencytranslation Treasury
adjustments
sharesTotalequityBalance at
1 January 2021

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

35

2

113

0

0

0

0

0

115

0

115

Share‑based payment(IFRS 2)

33

0

0

61

0

0

0

0

61

0

61

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

35

0

0

0

0

0

0

0

0

0

0

0

0

(53)

0

0

0

0

(53)

63

10

Equity transaction(IAS 27)
Change in treasury
shares

0

0

0

0

0

0

(3)

(3)

0

(3)

Balance at
31 December 2021

35

787

3,712

6,834

456

(3,448)

1,170

(45)

9,466

20

9,486

Profit for the period

0

0

4,247

0

0

0

0

4,247

(111)

4,136

Other comprehensive
income

0

0

3,432

(1,091)(2,240)

137

0

238

(1)

237

Total comprehensive
income for the period

0

0

7,679

(1,091)(2,240)

137

0

4,485

(112)

4,373

Capital increase

35

2

125

0

0

0

0

0

127

0

127

Share‑based payment(IFRS 2)

33

0

0

115

0

0

0

0

115

0

115

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

35

0

0

(1,181)

0

0

0

0

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

0

0

(39)

0

0

0

0

(39)

125

86

0

0

0

0

0

0

(23)

(23)

0

(23)

789

3,837

13,408(635) (5,688)

1,307

(68)

12,95032

12,982Equity transaction(IAS 27)
Change in treasury
sharesBalance at
31 December 2022

35

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

10

Total

Noncontrollinginterests

1. Airbus SE IFRS – Consolidated Financial Statements
Airbus SE – IFRS Consolidated Statement of Changes in Equity for the Years Ended 31 December 2022 and 2021

11

12

Notes to the IFRS Consolidated
Financial Statements
2.1 Basis of Preparation

15

2.2 Airbus Structure21

2.3 Segment Information

26

2.4 Airbus Performance30

2.5 Operational Assets and Liabilities

37

2.6 Employees Costs and Benefits50

2.7 Capital Structure and Financial Instruments

66

2.8 Other Notes

88

2.9 Appendix “Simplified Airbus Structure”

92

13

2. Notes to the IFRS Consolidated Financial Statements

Contents

14

2.1 Basis of Preparation

15

21. Property, Plant and Equipment40

1. The Company

15

2. Ukraine Crisis

15

22. Other Investments and Other Long‑Term Financial
Assets42

3. Macroeconomic Environment

15

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

43

4. Significant Accounting Policies

16

24. Inventories

44

5. Key Estimates and Judgements

18

6. Change in Accounting Policies and Disclosures

19

25. Provisions, Contingent Assets and Contingent
Liabilities

44

7. Climate Impacts

20

2.2 Airbus Structure21

26. Other Financial Assets and Other Financial
Liabilities46

8. Scope of Consolidation

27. Other Assets and Other Liabilities

47

21

9. Acquisitions and Disposals

28. Sales Financing Transactions

48

21
2.6 Employees Costs and Benefits

50

10. Investments Accounted for under the Equity
Method22

29. Number of Employees

50

11. Related Party Transactions

26

30. Personnel Expenses

51

2.3 Segment Information

26

31. Personnel‑Related Provisions

51

12. Segment Information

27

32. Post‑Employment Benefits

51

33. Share‑based Payment

58

34. Remuneration

61

2.7 Capital Structure and Financial Instruments

66

35. Total Equity

66

36. Capital Management67

37. Net Cash

68

38. Financial Instruments

72

2.8 Other Notes

88

39. Litigation and Claims

88

40. Auditor Fees

91

41. Events after the Reporting Date91

2.9 Appendix “Simplified Airbus Structure”

92

2.4 Airbus Performance30

13. Revenue and Gross Margin30

14. Research and Development Expenses

31

15. Other Income and Other Expenses

31

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

31

17. Total Financial Result32

18. Income Taxes

32

19. Earnings per Share36

2.5 Operational Assets and Liabilities

37

20. Intangible Assets37

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

2.1 Basis of Preparation
1.

The Company

The accompanying IFRS Consolidated Financial Statements
present the financial position and the results of operations ofAirbus SE together with its subsidiaries referred to as “theCompany”, a European public limited‑liability company (Societas
Europaea) with its seat (statutaire zetel) in Amsterdam, The
Netherlands, its registered address at Mendelweg 30, 2333 CS
Leiden, The Netherlands, and registered with the Dutch
Commercial Register (Handelsregister) under number 24288945.

2.

Ukraine Crisis

Russia’s invasion of Ukraine on 24 February 2022 and theresulting export control restrictions and international sanctions
against Russia, Belarus and certain Russian entities andindividuals have resulted in disruption to the Company’sbusiness, its operations, data management and supply chain.
Following the imposition of export control restrictions andsanctions by the EU, the UK, the US and other countries thatare relevant to the Company’s business, the Company
announced in March 2022 it has suspended the delivery of
aircraft and support services to Russian customers, as well as
the supply of spare parts, equipment and software to Russia.
The Company is complying with all applicable regulations andsanctions to its facilities and operations in Russia.
The crisis has increased the Company’s exposure to supply
chain disruption risk. Part of the titanium used by the Company
is sourced from Russia, both directly and indirectly through theCompany’s suppliers. While geopolitical risks are integrated into
the Company’s titanium sourcing policies, the impact ofRussia’s invasion of Ukraine on the Company’s ability to source
materials and components and any future expansion of
sanctions is continuously being reviewed.

3.

The Company’s reportable segments are Airbus, Airbus
Helicopters and Airbus Defence and Space (see “– Note 12:
Segment Information”). The Company is listed on the European
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 Board of Directors on
15 February 2023.

The Company is also indirectly exposed through its partnership
into the joint venture ArianeGroup. Arianespace paid andreceived pre‑payments for the Soyuz programme for which
Roscosmos decided to suspend the rocket launches operated
by Arianespace. Agreements have been reached on
pre‑payments received with two of these clients. Negotiations
are well advanced with the remaining customers.
Due to the above mentioned export control restrictions andsanctions, the Company has been unable to deliver two aircraft
previously recorded as sold at 31 December 2021. As a result,the associated revenues and margin have been derecognised
as of 31 March 2022. These aircraft have been remarketed in
the second quarter 2022.
The Company’s revenues in 2022 were not materially affectedby the Ukraine crisis.
As of 31 December 2022, the resulting recorded EBIT charge
amounts to approximately €0.1 billion, mainly relating to Airbus.

Macroeconomic Environment

In 2022, the Company has been operating in an adverse
macroeconomic environment in light of high inflation, energy
crisis, increasing interest rates, but also remaining effects of the
COVID‑19 pandemic.
During 2022, the Company experienced increases in its labour
rates, due to wage increases but also through the distributionof exceptional premiums granted to employees to help them
face inflation and the energy crisis. Furthermore, it also faced
increases in raw material and energy costs. The main impacts
of inflation on the Company’s Consolidated Financial
Statements have been assessed (see “– 3: Revenue and Gross
Margin”). In particular, the Company concluded that the mainmaterial effect on the margin of its overtime contracts or on theprovision for loss at completion of the onerous contracts

recognised as of 31 December 2022 was related to its A400M
contract.
Furthermore, the strengthened US dollar versus the euro had anegative impact on the mark to market valuation of the hedge
portfolio, while higher interest rates led to a decrease in thebonds portfolio (for more details, see “– Note 37.3: Financing
Liabilities” and “– Note 26: Other Financial Assets and Other
Financial Liabilities”). The increase in interest rates also resulted
in a decrease of the defined benefit obligations of the pension
plans, only partly offset by a decline in pension plan assets (see“– Note 32: Post‑Employment Benefits”). Associated increases
in discount rates did not result in any further long‑term assets
impairment charges (see “– Note 20: Intangible Assets”).

15

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

In addition, COVID 19 continued to cause impacts on the
Company’s business especially related to its sales andoperations in China.
This environment has further increased the Company’s
exposure to supply chain disruption, already impacted by theconsequences of Russia’s invasion of Ukraine (see “– Note 2:
Ukraine Crisis”). This supply chain disruption caused shortage
or delay of materials and parts, hampering the Company’s
production ramp‑up. On the A320 Family programme, theramp‑up trajectory has been adapted with suppliers. The

4.

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 prepared ona historical cost basis, unless otherwise indicated. They areprepared and reported in euro (“€”) and all values are rounded
to the nearest million appropriately. Due to rounding, numberspresented may not add up precisely to the totals provided andpercentages may not precisely reflect the absolute figures.
The Company describes the accounting policies applied ineach of the individual notes to the Financial Statements andavoids repeating the text of the standard, unless this isconsidered relevant to the understanding of the note’s content.
The Company’s accounting policies and methods areunchanged compared to 31 December 2021. The
implementation of other amended standards has no material
impact on the Company’s Consolidated Financial Statements
as of 31 December 2022. 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.
Variable considerations are included in the transaction pricewhen it is highly probable that there will be no significant
reversal of the revenue in the future. The Company identifies
the various performance obligations of the contract andallocates the transaction price to these performanceobligations. Advances and pre‑delivery payments (contract
liabilities) are received in the normal course of business and are
not considered to be a significant financing component as they
are intended to protect the Company from the customer failingto complete its contractual obligations.

16

Company is now progressing towards a monthly production
rate of 65 aircraft by the end of 2024 and 75 in 2026. The
A330 monthly production rate increased to around three at theend of 2022 as planned and the Company now targets toreach rate four in 2024. The A350 monthly rate is now around
six aircraft. In order to meet growing demand for widebody
aircraft as international air travel recovers, and following afeasibility study with the supply chain, the Company is now
targeting a monthly production rate of nine A350s at the end of2025.

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 the Company’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).
The Company transfers control over time when:– it produces a good with no alternative use and the Company
has an irrevocable right to payment (including a reasonablemargin) for the work completed to date, in the event ofcontract termination at the convenience of customers (e.g.
Tiger contract); or– it creates a good which is controlled by the customer as thegood is created or enhanced (e.g. Eurofighter contracts,some border security contracts, A400M development); or– the customer simultaneously receives and consumes thebenefits provided by the Company (e.g. maintenancecontracts).
For the application of the over time method (PoC method), themeasurement of progress towards complete satisfaction of aperformance obligation is based on inputs (i.e. cost incurred).
When none of the criteria stated above have been met, revenue
is recognised at a point in time. For instance, revenue isrecognised at the delivery of aircraft under IFRS 15 from thesale of military transport aircraft, from the A400M launch
contract and most of NH90 serial helicopters’ contracts.

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

Provisions for onerous contracts — The Company records
provisions for onerous contracts when it becomes probablethat the total contract costs will exceed total contract revenue.
Before a provision for onerous contracts is recorded, therelated assets under construction are measured at their net
realisable value and written‑off if necessary. Onerous contracts
are identified by monitoring the progress of the contract
together with the underlying programme status. An estimate of
the related contract costs is made, which requires significant
and complex assumptions, judgements and estimates related
to achieving certain performance standards (see “– Note 5: Key
Estimates and Judgements”, “– Note 13: Revenue and Gross
Margin” and “– Note 25: Provisions, Contingent Assets andContingent 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 clearly
defined (i.e. the critical design review is finalised);– adequate resources are available to successfully complete
the development;– the benefits from the assets are demonstrated (a market
exists or the internal usefulness is demonstrated) and thecosts attributable to the projects are reliably measured;– the Company intends to produce and market or use thedeveloped product or process and can demonstrate its
profitability.
Income tax credits granted for research and development
activities are deducted from corresponding expenses or from
capitalised amounts when earned.
Capitalised development costs, are recognised either as
intangible assets or, when the related development activities
lead to the construction of specialised tooling for production(“jigs and tools”), or involve the design, construction and testingof prototypes and models, as property, plant and equipment.
Capitalised development costs are generally amortised over theestimated number of units produced. If the number of units
produced cannot be estimated reliably, they are amortised overthe estimated useful life of the internally generated intangible
asset. Amortisation of capitalised development costs is
recognised in cost of sales.
Inventories are measured at the lower of acquisition cost
(generally the average cost) or manufacturing cost and net
realisable value. Manufacturing costs comprise all costs thatare directly attributable to the manufacturing process, such as
direct material and labour, and production related overheads(based on normal operating capacity and normal consumptionof material, labour and other production costs), including
depreciation charges. Net realisable value is the estimatedselling price in the ordinary course of the business less theestimated costs to complete the sale.

Transactions in foreign currency, i.e. transactions incurrencies other than the functional currency of an entity of theCompany, are translated into the functional currency at theforeign exchange rate prevailing at the transaction date.
Monetary assets and liabilities denominated in foreign
currencies at the end of the reporting period are remeasured
into the functional currency at the exchange rate in effect atthat date. Except when deferred in equity as qualifying cash
flow hedges (see “– Note 38: Financial Instruments”), these
foreign exchange remeasurement gains and losses arerecognised, in line with the underlying item:– in profit before financial result and income taxes if thesubstance of the transaction is commercial (including sales
financing transactions); and– in financial result for financial transactions.
Non‑monetary assets and liabilities denominated in foreign
currencies that are stated at historical cost are translated intofunctional currency at the foreign exchange rate in effect at thedate of the transaction. Translation differences on
non‑monetary financial assets and liabilities that are measured
at fair value are reported as part of the fair value gain or loss.
However, translation differences of non‑monetary financial
assets measured at fair value and classified as fair value
through other comprehensive income (“OCI”) are included inaccumulated other comprehensive income (“AOCI”).
Hedge accounting — Most of the Company’s revenue isdenominated in US dollar (“US$”), while a major portion of its
costs are incurred in euro. The Company is significantly
exposed to the risk of currency changes, mainly resulting fromUS$/€ exchange rates. Furthermore, the Company is exposed,though to a much lesser extent, to foreign exchange risk arisingfrom costs incurred in currencies other than the euro and toother market risks such as interest rate risk, commodity priceand equity price risk.
In order to manage and mitigate those risks, the Company
enters into derivative contracts. The Company applies hedge
accounting to its derivative contracts whenever the relevant
IFRS criteria can be met. Hedge accounting ensures thatderivative gains or losses are recognised in profit or loss (mainly
in revenue) in the same period that the hedged items ortransactions affect profit or loss.
The major portion of the Company’s derivative contracts is
accounted for under the cash flow hedge model. The fair value
hedge model is used only for certain interest rate derivatives.
Derivative contracts which do not qualify for hedge accounting
are accounted for at fair value through profit or loss; any related
gains or losses being recognised in financial result.
The Company’s hedging strategies and hedge accounting
policies are described in more detail in “– Note 38: Financial
Instruments”.

17

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

5.

Key Estimates and Judgements

The preparation of the Company’s Consolidated Financial
Statements requires the use of estimates and assumptions. In
preparing these Financial Statements, management exercises
its best judgement based upon its experience and thecircumstances prevailing at that time. The estimates andassumptions are based on available information and conditions
at the end of the financial period presented and are reviewed
on an ongoing basis. Key estimates and judgements that havea significant influence on the amounts recognised in the
Company’s Consolidated Financial Statements are mentioned
below:
Impairment of long‑life assets, work in progress andfinished aircraft — In testing long‑life assets such as jigs andtools and capitalised development costs for impairment, theCompany makes estimates on the number and timing ofaircraft units to be delivered in the future, the margin of theseaircraft, and the discount rate associated with the aircraft
programme. For aircraft that may need to be remarketed, theimpairment of working progress and finished aircraft isassessed based on an estimation of the future selling price andassociated remarketing costs.
Revenue recognition for performance obligationstransferred over time — The PoC method is used torecognise revenue for performance obligations transferred overtime. This method places considerable importance on accurate
estimates at completion as well as on the extent of progress
towards completion. For the determination of the progress ofthe performance obligations, significant estimates include total
contract costs, remaining costs to completion, total contract
revenue, contract risks and other judgements.
The management of the segments continually review all
estimates involved in such performance obligations and adjusts
them as necessary (see “– Note 23: Contract Assets andContract 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 nature of the Company’s contracts and related
programmes, the extent of assumptions, judgements andestimates in these monitoring processes differs. In particular,
the introduction of commercial or military aircraft programmes(e.g. A400M) or major derivative aircraft programmes involves
an increased level of estimates and judgements associatedwith the expected development, production and certification
schedules and expected cost components (see “– Note 25:
Provisions, Contingent Assets and Contingent Liabilities”).
In view of overall commercial relationships, contract
adjustments may occur, and must be considered on a case bycase basis.

18

Estimates and judgements are subject to change based on
new information as contracts and related programmes
progress. Furthermore, the complex design and manufacturing
processes of the Company’s industry require challenging
integration and coordination along the supply chain including
an ongoing assessment of suppliers’ assertions which may
additionally impact the outcome of these monitoring processes.
A restructuring provision is recognised when the Company has
developed a detailed formal plan for the restructuring and has
raised a valid expectation in those affected that it will carry out
the restructuring by starting to implement the plan or
announcing its main features to those affected by it. The
measurement of a restructuring provision is at the best
estimate of the anticipated costs and includes only the direct
expenditures arising from the restructuring, which are thoseamounts that are both necessarily entailed by the restructuring
and not associated with the ongoing activities of the Company.
Non‑current assets — Non‑current other assets include
payments to be made to Airbus by suppliers after aircraft
delivery and are recorded as a reduction of cost of goods soldat the time of aircraft delivery. This valuation involves the use of
judgment and is based on the best available estimate of the
future aircraft operations, the pattern of future maintenanceactivity and escalation of costs of long‑term contractual
arrangement with suppliers. The impact of climate change isalso considered when making these estimates. These future
payments are discounted to reflect specific contractual terms
and repayment profile. In making such estimates, Airbus relies
on both management experience and industry regulations,however, these estimates can be subject to revision (see “–Note 27: Other Assets and Other Liabilities”).
Hedge accounting — The hedge portfolio covers a large
portion of the Company’s highly probable forecasted
transactions derived from its commercial activities. The
Company makes estimates and judgement in assessing thehighly probable criteria of the forecasted transactions, in orderto anticipate future events, as risk of future cancellations oforders (see “– Note 38: Financial Instruments”).
Employee benefits — The Company accounts for pension
and other post‑retirement benefits in accordance with actuarial
valuations. These valuations rely on statistical and other factors
in order to anticipate future events. The actuarial assumptions
may differ materially from actual developments mainly due tochanging market and economic conditions and therefore resultin a significant change in post‑retirement employee benefit
obligations and the related future expenses (see “– Note 32:
Post‑Employment Benefits”).

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

Legal contingencies — The Company is party to litigations
related to a number of matters as described in “– Note 39:
Litigation and Claims”. The outcome of these matters may havea material effect on the Financial Position, results of operations
or cash flows of the Company. Management regularly analyses
current information concerning these matters and provides
provisions for probable cash outflows, including the estimate oflegal expenses to resolve the matters. Internal and externallawyers are used for these assessments. In making thedecision regarding the need for provisions, management
considers the degree of probability of an unfavourable outcome
and the ability to make a sufficiently reliable estimate of theamount of loss. The filing of a suit or formal assertion of a claim
against the Airbus companies or the disclosure of any such suitor assertion, does not automatically indicate that a provision
may be appropriate.
Income taxes — The Company operates and earns income innumerous countries and is subject to changing tax laws in
multiple jurisdictions within these countries. Significant
judgements are necessary in determining the worldwide
income tax liabilities. Although management believes that it has
made reasonable estimates about the final outcome of tax
uncertainties, no assurance can be given that the final tax
outcome of these matters will be consistent with what isreflected in the historical income tax provisions. At each end of
the reporting period, the Company assesses whether the6.

realisation of future tax benefits is probable to recognisedeferred tax assets. This assessment requires the exercise ofjudgement on the part of management with respect to, among
other things, benefits that could be realised from available tax
strategies and future taxable income, as well as other positive
and negative factors.
The recorded amount of total deferred tax assets could be
reduced, through valuation allowances recognition, if estimatesof projected future taxable income and benefits from available
tax strategies are lowered, or if changes in current tax
regulations are enacted that impose restrictions on the timing
or extent of the Company’s ability to utilise future tax benefits.
The basis for the recoverability test of deferred tax assets is thesame as the Company’s latest operative planning also taking
into account certain qualitative aspects regarding the nature of
the temporary differences. Qualitative factors include but are
not limited to an entity’s history of planning accuracy,
performance records, business model, backlog, existence oflong‑term contracts as well as the nature of temporary
differences (see “– Note 18: Income Taxes”).
Other subjects that involve assumptions and estimates arefurther described in the respective notes (see “– Note 9:
Acquisitions and Disposals”, “– Note 20: Intangible Assets” and“– Note 23: 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 2022 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 2022 have no material impact on the Consolidated Financial Statements.

New, Revised or Amended IFRSs Applied from 1 January 2022
Agenda Decision published by the IFRS Interpretation Committee (“IFRS IC”)
In April 2021, IFRS IC published an agenda decision,“Configuration or Customisation Costs in a Cloud Computing
Arrangement”, which considered how an entity should account for
configuration and customisation costs incurred in implementing
these service arrangements.

IFRS IC concluded that these costs should be expensed, unlessthe criteria for recognising a separate asset are met. The Company
did not perform significant configuration or customisation on its
software‑as‑a‑service contracts. As a consequence, the IFRS IC
decision has no significant impact on the Consolidated Financial
Statements as of 31 December 2022.

19

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

New, Revised or Amended IFRSs Issued but not yet Applied
A number of new or revised standards, amendments and improvements to standards as well as interpretations are not yet effective
for the year ended 31 December 2022 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
statusIFRS 17 “Insurance Contracts”

1 January 2023

Endorsed

Amendments to IAS 1 “Presentation of Financial Statements and IFRS PracticeStatement 2: Disclosure of Accounting policies”

1 January 2023

Endorsed

Amendments to IAS 8 “Definition of Accounting Estimates”

1 January 2023

Endorsed

Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from aSingle Transaction”

1 January 2023

Endorsed

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

1 January 2023

Endorsed

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

1 January 2024

Not yet endorsed

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

1 January 2024

Not yet endorsed

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

1 January 2024

Not yet endorsedStandards and related amendments

7.

Climate Impacts

Climate change may have a major impact on both theCompany’s industrial operations and its upstream anddownstream value chains, including aircraft direct operations
and the wider air transport ecosystem. Accordingly,
climate‑related risks can potentially affect the Company’sbusiness and competitiveness, its customers and other actors
in the aviation industry. For more details, please refer to the
Risk Factors in the Report of the Board of Directors – 4.6 Risk
Factors – Climate‑Related Risks.
As of 31 December 2022, to the best of the Company’s
judgment, there is no material impact on the Company’s assets
and liabilities. The Company considered the assumptions
related to the life cycle of its programmes and the related
impacts on long‑lived assets and concluded that there is noneed for impairment.
Similarly, the Company did not identify any need for revision to
the useful lives of the property, plant and equipment andintangible assets.
For more detailed information, see “– Note 20: Intangible
assets” and “– Note 21: Property, Plant and Equipment”.
This is supported by the current demand for the Company’s
products as demonstrated by its order backlog. As it relates tocommercial aircraft, the Company’s current portfolio alreadydelivers significant CO2 reduction when compared to theprevious generation aircraft. Around 75% of the global
commercial aircraft fleet is made up of older generation aircraft,20

therefore, renewing the fleet represents an immediate potential
for aviation decarbonisation. Furthermore, the Company
expects its commitment to certify all current aircraft andhelicopter programmes to be capable of flying on 100%
Sustainable Aviation Fuels (SAF) by 2030 will play an importantrole in the sector’s decarbonisation journey.
The Company has received approval from the Science Based
Targets initiative (SBTi) for its greenhouse gas emission
reduction near‑term targets. These targets, in line with the Paris
agreement’s objectives, are based on climate science andcover the full set of the Company’s emissions. Airbus intends toreduce its Scope 1 and Scope 2 industrial emissions by up to
63% by 2030, in line with a 1.5°C pathway. The Company also
committed to reducing by 46% the greenhouse gas emissions
intensity generated by its commercial aircraft in service(Scope 3 - Use of Sold Product) by 2035.
In support of the overall sector ambition, the Company isinvesting in and accelerating its efforts on complementarystrategic pathways to reduce its environmental footprint.
Overall, a major portion of the Company capital expenditures,
research & technology, and research & development expenses
is linked to its commercial aircraft activities and the realisationof five decarbonisation pathways (see Report of the Board of
Directors – 6.1.2 – Climate change). In 2022, the total research& development expenses amounted to €3.1 billion (2021:€2.7 billion).

2. Notes to the IFRS Consolidated Financial Statements
Airbus Structure

2.2 Airbus Structure
8.

Scope of Consolidation

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

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

PERIMETER OF CONSOLIDATION
31 December
2022

2021

179

178

in joint ventures

53

57

in associates

29

23

261

258

(Number of companies)

Fully consolidated entities
Investments accounted for under the equity method

Total

9.

Acquisitions and Disposals

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

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

21

2. Notes to the IFRS Consolidated Financial Statements
Airbus Structure

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

9.1

Acquisitions

On 20 June 2022, a Share Purchase Agreement has beensigned between a consortium composed of the Company,
Safran and Tikehau ACE Capital, and Eramet for the acquisitionof its subsidiary Aubert & Duval. The acquisition, which remains
subject to certain conditions precedent including regulatory
approvals, is expected to be completed in early 2023.
On 20 July 2022, Satair USA, Inc. signed a Membership
Interest Purchase Agreement under which it acquired 100% of
the shares of VAS Aero Services, LLC. VAS Aero Services
provides aviation logistics and aftermarket services including
end‑of‑life support. A preliminary goodwill of €67 million isrecognised as of 31 December 2022 and the one year window

9.2

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.

period for the completion of the purchase price allocation willend in June 2023.
On 31 December 2022, Airbus Helicopters Deutschland GmbHacquired 100% of the shares of ZF Luftfahrttechnik GmbH. ZF
Luftfahrttechnik was subsequently renamed Airbus Helicopters
Technik GmbH. The company is a manufacturer of dynamic
components for light and medium helicopters and amaintenance, repair, and overhaul service partner for helicopter
fleet. A preliminary goodwill of €60 million is recognised as of
31 December 2022 and the one year window period for thecompletion of the purchase price allocation will end in
December 2023.

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:
2022

2021

Total selling price received by cash and cash equivalents

0310

Cash and cash equivalents included in the disposed subsidiaries

0

0

Total

0

310

(In € million)

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

10.

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

2022

2021

Investments in joint ventures

1,686

1,471

Investments in associates

381

201

2,067

1,672

Total

Investments accounted for under the equity method increased by €+395 million to €2,067 million (2021: €1,672 million). They
mainly include the equity investments in ArianeGroup, MBDA and ATR GIE.

22

2. Notes to the IFRS Consolidated Financial Statements
Airbus Structure

10.1

Investments in Joint Ventures

The joint ventures in which the Company holds an interest are structured in separate incorporated companies. Under joint
arrangement agreements, unanimous consent is required 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)

2022

2021

Carrying amount of the investments at 1 January

1,471

1,367

New joint ventures

049

Share of results from continuing operations

99

73

Share of other comprehensive income

173

116

Dividends received during the year

(99)

(70)

Capital increase (decrease)36

76

Changes in consolidation

0

(28)

Others

6

(112)

1,686

1,471

Carrying amount of the investments at 31 December

The Company’s individually material joint ventures are
ArianeGroup, Paris (France), MBDA S.A.S., Paris (France), andATR GIE, Blagnac (France), as parent companies of theirrespective groups. These joint venture companies are notpublicly listed.
ArianeGroup is a 50% joint venture between the Company
and Safran. ArianeGroup is the head company in a group
comprising several subsidiaries and affiliates, such as: APP,
Arianespace, Eurocryospace, Europropulsion, Nuclétudes,
Pyroalliance, Regulus and Sodern. ArianeGroup inherits a richportfolio of products and services, enabling it to deliver
innovative and competitive solutions to numerous customers
around the world. In 2022, ArianeGroup has been strongly
impacted by the Ukraine crisis. All Soyuz flights operated by
Arianespace and Starsem have been canceled since
24 February 2022 (see “– Note 2: Ukraine Crisis”). In addition,
ArianeGroup has announced the postponement of theinaugural flight of the Ariane 6 launcher to the end of 2023.

The Company holds a 37.5% stake in MBDA at 31 December
2022, which is a joint venture between the Company, BAE
Systems and Leonardo. MBDA offers missile systems
capabilities that cover the whole range of solutions for air
dominance, ground‑based air defence and maritime superiority,
as well as advanced technological solutions for battlefield
engagement.
ATR GIE manufactures advanced turboprop aircraft. It is a 50%
joint venture between Leonardo and the Company. Both
Leonardo and the Company provide airframes which areassembled by ATR GIE in France. The members of ATR GIE arelegally entitled exclusively to the benefits and are liable for thecommitments of the joint venture. ATR GIE is obliged to transfer
its cash to each member of the joint venture.

23

2. Notes to the IFRS Consolidated Financial Statements
Airbus Structure

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

2022

2021

2022

2021

2022

2021

Revenue

2,357

3,129

4,210

4,234

852

707

Depreciation and amortisation

(153)

(157)

(199)

(165)

3

21

Interest income

2

1

39

8

0

0

Interest expense

(23)

(12)

(25)

(13)

0

0

Income tax expense

(19)

40

(123)

(112)

(2)

0

Profit (loss) from continuing operations

19

(39)

386

344

(11)

(48)

Other comprehensive income

70

15

316

266

0

0

Total comprehensive income (100%)

89

(24)

702

610

(11)

(48)

Non‑current assets

6,086

6,129

2,748

2,727

239

267

Current assets

6,841

6,466

8,160

7,849

785

720

1,409

1,223

2,987

2,819

4

6

909

1,008

206

766

75

203

358

423

11

6

0

0

7,790

7,451

9,171

8,733

748

662

59

129

22

21

0

0

Total equity (100%)

4,228

4,136

1,531

1,077

201

122

Equity attributable to the equity owners of the parent

4,230

4,126

1,531

1,077

201

122

(2)

10

0

0

0

0

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

ArianeGroupMBDA

ATR GIE(In € million)

2022

2021

2022

2021

2022

2021

The Company’s interest in equity on investee

2,115

2,063

575

404

100

61

244

244

282

282

0

0

(1,709)(1,640)

0

0

0

0

Contingent liability release adjustment

(36)

(36)

0

0

0

0

Fair value adjustments and modifications for differencesin accounting policies

(93)

(101)

(10)

(10)

0

0

Elimination of downstream inventory

2

2

0

0

(4)

(5)

Other

0

0

0

0

(3)

3

523

532

847

676

93

59

Goodwill
PPA adjustments, net of tax

Carrying amount of the investment at 31 December

24

ATR GIE

2. Notes to the IFRS Consolidated Financial Statements
Airbus Structure

The development of these investments is as follows:
ArianeGroupMBDA

ATR GIE

2022

2021

2022

2021

2022

2021

Carrying amount of the investment at 1 January

532

669

676

498

59

10

Share of results from continuing operations

(47)

(66)

146

130

(5)

(23)

Share of other comprehensive income

38

5

117

99

8

(4)

Dividends received during the year

0

0

(92)

(49)

0

0

Capital increase (decrease)

0

0

0

0

36

76

Changes in consolidation

0

5

0

0

0

0

Others

0

(81)

0

(2)

(5)

0

523

532

847

676

93

59

(In € million)

Carrying amount of the investment at 31 December

The Company’s share of contingent liabilities and other commitments as of 31 December 2022 relating to MBDA is €500 million(2021: €393 million).

10.2

Investments in Associates

The Company’s interests in associates, accounted for under the equity method, are stated in aggregate in the following table:
2022

2021

Carrying amount of the investment at 1 January

201

211

Share of results from continuing operations

35

(33)

Share of other comprehensive income

138

30

Dividends received during the year

(1)

(6)

Changes in consolidation

6

0

Others

2

(1)

381

201

(In € million)

Carrying amount of the investment at 31 December

The cumulative unrecognised comprehensive loss for these associates amounts to €0 million and €-12 million as of 31 December
2022 and 2021, respectively.

25

2. Notes to the IFRS Consolidated Financial Statements
Segment Information

11.

Related Party Transactions
Sales ofgoods andservices andother income

Purchases ofgoods andservices andother expenses

Receivables at
31 December

Total transactions
with associates

20

177

2

(0)

96

32

Total transactions
with joint ventures

3,073

206

1,273

1,199

2

1,692

Total transactions
with associates

7

132

3

22

108

0

Total transactions
with joint ventures

2,807

212

930

1,239

0

1,410

(In € million)

Loans granted /Other receivables
Liabilities atdue at31 December
31 December

Loans received /Other liabilities
due at31 December

2022

2021

Transactions with unconsolidated subsidiaries are immaterial to
the Company’s Consolidated Financial Statements.
As of 31 December 2022, the Company granted guarantees of€129 million to Air Tanker Group in the UK (2021: €129 million)and €225 million to NHIndustries in France (2021: €225 million).

For information regarding the funding of the Company’s pension
plans, which are considered as related parties, see “– Note 32:
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 34: Remuneration”.

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

On 1 January 2022, Airbus Atlantic, a wholly‑owned Airbus
subsidiary, was established. The new company groups thestrengths, resources and skills of Airbus’s sites in Nantes andMontoir‑de‑Bretagne, the central functions associated with theiractivities, as well as the STELIA Aerospace sites worldwide.

26– 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 spacesystems for telecommunications, earth observations,navigation, science and orbital systems. ConnectedIntelligence provision of services around data processing
from platforms, secure communication and cyber security.
Unmanned Aerial Systems design, development, delivery
and service support. In addition, the main joint venturesdesign, develop, deliver, and support missile systems andspace launcher systems.
This unification is part of the transformation project announcedin April 2021, aimed at strengthening the value chain ofaerostructure assembly within Airbus’s industrial setup.

2. Notes to the IFRS Consolidated Financial Statements
Segment Information

In addition, Airbus Aerostructures GmbH was established on
1 July 2022. The new wholly‑owned Airbus subsidiary manages
and delivers large structural components to Airbus. It includes
four production sites in Germany: the Hamburg plant andheadquarters, the plant in Stade, and the former Premium
AEROTEC plants of Nordenham and Bremen. Adjacent12.

Premium AEROTEC sites in Augsburg, Varel and Braşov will
initially remain in Premium AEROTEC GmbH and are planned toundergo restructuring and, upon successful restructuring, to be
integrated into Airbus Aerostructures GmbH by 30 June 2025.
These have no impact on the segment structure described above.

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 2022 is as follows:
AirbusDefenceand Space

Eliminations

Consolidated
Airbus(In € million)

AirbusAirbusHelicopters

Total revenue

41,428

7,048

11,259059,735Internal revenue

(622)

(291)

(59)

0

(972)

40,806

6,757

11,200058,76337,681

3,429

3,369

0

44,479

Revenue
thereofsales of goods at a point in timesales of goods over time

18

310

4,115

0

4,443

3,107

3,018

3,716

0

9,841

4,800

639

(118)

4

5,325

depreciation and amortisation(1,571)

(189)

(961)

5

(2,716)

research and development expenses(2,607)

(275)

(266)

69

(3,079)

(4)

6

132

0

134

(1,035)

(342)

(788)

(19)

(2,184)

services, including sales of spare parts
Profit before financial result and income taxes (EBIT)
thereofshare of profit from investments accounted for under theequity method
additions to other provisions(1)

Interest result(232)

Other financial result(18)

Income taxes(939)

Profit for the period

4,136(1) See “– Note 25: Provisions, Contingent Assets and Contingent Liabilities”.

27

2. Notes to the IFRS Consolidated Financial Statements
Segment Information

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

(425)

(230)

(55)

0

(710)

35,7396,279

10,131052,14933,455

3,298

3,076

0

39,829

Revenue
thereofsales of goods at a point in timesales of goods over time

20

192

3,557

0

3,769

2,264

2,789

3,498

0

8,551

4,175

535

568

64

5,342

depreciation and amortisation(1,616)

(184)

(525)

0

(2,325)

research and development expenses(2,252)

(275)

(249)

30

(2,746)

share of profit from investments accounted for under the equity
method

(29)

0

69

0

40

additions to other provisions

(989)

(398)

(870)

27

(2,230)services, including sales of spare parts
Profit before financial result and income taxes (EBIT)
thereofInterest result(246)

Other financial result(69)

Income taxes(853)

Profit for the period

4,174

31 December

Segment capital expenditures(In € million)

2022

2021

Airbus

1,730

1,270

Airbus Helicopters

183

175

Airbus Defence and Space

551

483

0

0

2,464

1,928

Eliminations

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

28

2. Notes to the IFRS Consolidated Financial Statements
Segment Information

31 December

Segment assets
2022

2021

Airbus

68,36760,673

Airbus Helicopters

9,262

8,500

Airbus Defence and Space

17,83517,081Eliminations(8,505)(6,765)

Total segment assets

86,95979,489Deferred and current tax assets

5,387

4,875

Securities

7,775

8,111

Cash and cash equivalents

15,823

14,5720

0115,944

107,047(In € million)

Unallocated

Assets classified as held for sale

Total assets

Revenue by geographical areas is disclosed in “– Note 13: Revenue and Gross Margin”. Property, plant and equipment bygeographical areas is disclosed in “– Note 21: Property, Plant and Equipment”.
Segment order backlog

31 December
2022

2021

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

Airbus390,456

86

345,101

87

Airbus Helicopters

20,774

5

17,985

4

Airbus Defence and Space

38,426

9

36,131

9

(415)

0

(778)

0

449,241100

398,439

100

Eliminations

Total

As of 31 December 2022, the total backlog represents theaggregate amount of the transaction price allocated to theunsatisfied and partially unsatisfied performance obligations to
the Company’s customers. Backlog commitments are relative
to the Company’s enforceable contracts with its customers
where it is probable that the consideration will be collected. As
a result, contractual rebates, engines concessions, and variableconsiderations are taken into consideration for measurement.
Contracts stipulated in a currency different than thepresentation currency are translated to euro using the spot rate
as of 31 December 2022 and 2021 respectively. Adjustments

to the value of the backlog could result from changes in thetransaction price. The backlog will mainly be released into
revenue over a period of eight years.
The increase mainly reflects a book to bill above one and thestrengthening of the US dollar. In Airbus, total grosscommercial aircraft orders amount to 1078 units (2021: 771
units) with net orders of 820 aircraft after cancellations (2021:
507 aircraft) and total deliveries amount to 661 units (2021: 611
units) as of 31 December 2022.

29

2. Notes to the IFRS Consolidated Financial Statements
Airbus Performance

2.4 Airbus Performance
13.

Revenue and Gross Margin

Revenue increased by €+6,614 million to €58,763 million (2021: €52,149 million). The increase is mainly driven by higher aircraft
deliveries of 661 aircraft (in 2021: 611 aircraft) and higher contributions from Airbus Defence and Space and Airbus Helicopters. It
also reflects a positive foreign exchange impact at Airbus.
Revenue by geographical areas based on the location of the customer is as follows:
2022

2021

Europe24,261

19,490Asia‑Pacific

15,38015,970

North America

13,54910,546

Middle East

2,598

2,256

Latin America

2,086

980

Other countries

889

2,907

58,76352,149(In € million)

Total

The gross margin increased by €+940 million to €10,571 million
compared to €9,631 million in 2021, mainly driven by higher
aircraft deliveries. It includes a non‑recurring positive impact
related to the re‑measurement of past service cost in theretirement obligations of €0.4 billion and the release ofcompliance‑related provisions of €0.3 billion (see “– Note 25:
Provisions”), offset by additional losses on A400M of€0.5 billion, contract‑related provisions of €0.3 billion andexceptional premium granted to employees of €0.3 billion. The
gross margin rate decreased from 18.5% to 18%.
The Company has performed an assessment of the impacts ofinflation which mainly relate to the overtime contracts within
Airbus Defence and Space, in particular the A400M
programme for €0.2 billion.
In 2022, the Company has delivered a total of 115 A400M
aircraft including 10 aircraft in 2022.
The Company has continued with development activities
toward achieving the revised capability roadmap. Retrofit
activities are progressing in close alignment with the customer.
In 2021, an update of the contract Estimate At Completion(EAC) was performed and an additional charge of €212 million
recorded reflecting mainly the updated estimates on thedelivery pattern of the launch contract and the associatedimpact on unabsorbed costs. In 2022, an update of thecontract EAC has been performed and an additional charge of€477 million recorded. This mainly reflects updated

30

assumptions, including inflation and risks related to theremaining SOC3 contractual development milestones to beachieved.
Risks remain on the qualification of technical capabilities andassociated costs, on aircraft operational reliability, on cost
reductions and on securing export orders in time as per therevised baseline.
Defence export licences to Saudi Arabia were suspended by
the German Government until 31 March 2020 and are awaiting
renewal. In 2022, the Company updated its contract EAC
which confirmed the 2021 position. The Company continues toengage with its customer to agree a way forward. The outcomeof these actions is presently unclear but could result in further
significant financial impacts.
In a notice of termination dated 9 June 2022, the Norwegian
Defence Material Agency notified NHIndustries SAS (“NHI”) of
the Norwegian Ministry of Defence’s decision to terminate its
contract for the supply of 14 NH90 helicopters. In a press
release dated 10 June 2022, NHI noted it “is extremely
disappointed by the decision taken by the Norwegian Ministryof Defence and refutes the allegations being made against the
NH90 as well as against [NHI]”. NHI considers the termination
to be legally groundless and reserves its right to take anynecessary legal action to challenge it. The parties are engaging
in discussions with a view to resolve this matter.

2. Notes to the IFRS Consolidated Financial Statements
Airbus Performance

14.

Research and Development Expenses

Research and development expenses increased by €333 million to €3,079 million compared to €2,746 million in 2021

15.

Other Income and Other Expenses

Other income decreased by €-123 million to €471 million
compared to €594 million in 2021. In 2022, it includes aninsurance income of €200 million linked to the launch failure of
the two satellites Pléiades Neo 5 and 6 in December 2022 (see“– Note 21: Property, Plant and Equipment”). In 2021, it
included a restructuring provision release of €207 million andthe gain of €122 million for the divestment of one of its sites toa joint venture.

16.

Other expenses increased by €389 million to €-590 million
compared to €-201 million in 2021, mainly due to the impact of€-437 million linked to the launch failure of the two satellites
Pléiades Neo 5 and 6 in December 2022 (see “– Note 21:
Property, Plant and Equipment”).

Share of Profit from Investments Accounted for under the Equity
Method and Other Income from Investments
2022

2021

Share of profit from investments in joint ventures

99

73

Share of profit from investments in associates

35

(33)

Share of profit from investments accounted for under the equity method

134

40

Other income from investments

58

76(In € million)

Share of profit from investments under the equity method and other income from investments increased by €76 million to€192 million compared to €116 million in 2021, mainly linked to higher share of result from equity investments, partly offset by thedividends received in 2021 from other investments classified at fair value through OCI.

31

2. Notes to the IFRS Consolidated Financial Statements
Airbus Performance17.

Total Financial Result

Interest income derived from the Company’s asset accrues, using the effective interest rate method.
(In € million)

2022

2021

Interests on European Governments’ refundable advances

(133)

(112)

Others

(99)

(134)

Total interest result (1)

(232)

(246)

Change in fair value measurement of financial instruments

(346)

(370)

Foreign exchange translations on monetary items

(99)

53

8

(19)

Others419

267

Total other financial result

(18)

(69)

Total

(250)

(315)

Unwinding of discounted provisions(1) In 2022, the total interest income amounts to €180 million (2021: €88 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 €-412 million (2021: €-334 million) are recognised as total interest expenses. Bothamounts are calculated by using the effective interest method.

Total financial result improved by €+65 million to €-250 million
compared to €-315 million in 2021. This is mainly driven by therevaluation of certain equity investments (see “– Note 22: Other
Investments and Other Long‑Term Financial Assets”) and a net

18.

positive impact from the revaluation of financial instruments
partly offset by the negative impact from the foreign exchange
valuation of monetary items.

Income Taxes

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

2022

2021

Current tax expense

(536)

(348)

Deferred tax expense

(403)

(505)

Total

(939)

(853)

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

2022

2023

> 2024

Netherlands

25.80

25.80

25.80

France

25.83

25.83

25.83

Germany

30.00

30.00

30.00

Spain

25.00

25.00

25.00

UK (1)

19.00

25.00

25.00

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

32

2. Notes to the IFRS Consolidated Financial Statements
Airbus Performance

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

2022

2021

Profit before income taxes

5,075

5,027

Corporate income tax rate

25.8%

25.0%

Expected (expense) for income taxes(1,309)(1,257)

Effects from tax rate differentials / Change of tax rate

39

(103)

Capital gains and losses on disposals / mergers

05

Income from investment and associates

29

23

Tax credit

41

53

Change in valuation allowances (1)

53

116

Tax contingencies

156

186

Other non‑deductible expenses and tax‑free income

52

124

(939)

(853)

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

The income tax expense amounts to €-939 million (2021:€-853 million) and corresponds to an effective income tax rateof 18.5%. This includes impacts on the tax‑free revaluation ofcertain equity investments under IFRS 9, tax risk updates anddeferred tax asset impairments. In addition, the establishment
of Airbus Aerostructures GmbH and the restructuring ofPremium AEROTEC GmbH (see “ – Note 12: Segment Information”)
led to a release of deferred tax asset impairment of €536 million
out of which €336 million recorded in the income statementand €200 million in other comprehensive income.
In 2021, the effective tax rate included positive impacts fromtax 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.
As the Company controls the timing of the reversal of
temporary differences associated with its subsidiaries (usuallyreferred to as “outside basis differences”) arising from yet
undistributed profits and changes in foreign exchange rates, itdoes not recognise a deferred tax liability. For temporary
differences arising from investments in associates the Company
recognises deferred tax liabilities. The rate used reflects theassumptions that these differences will be recovered from
dividend distribution unless a management resolution for thedivestment of the investment exists at the closing date. For
joint ventures, the Company assesses its ability to control the
distribution of dividends based on existing shareholder
agreements and recognises deferred tax liabilities accordingly.
As of 31 December 2022, 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 €172 million.

33

2. Notes to the IFRS Consolidated Financial Statements
Airbus Performance

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

FranceGermany

Spain

UK

Other
countries

31 December
2022

31 December
2021

NOL

60

3,429

94

1,130

3,448

8,161

8,285

Trade tax loss carry forwards

0

3,719

0

0

0

3,719

3,530

Tax credit carry forwards

0

0

223

0

2

225

221

Tax effect

15

1,069

246

283

893

2,506

2,519

Valuation allowances

(12)

(587)

(127)

(92)

(852)

(1,670)(2,001)

3

482

119

191

41

836

518

(In € million)

Deferred tax assets on NOLs
and tax credit carry forwards

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)

2022

2021

Net deferred tax assets at 1 January

4,207

3,572

Deferred tax expense in income statement

(403)

(505)

Deferred tax recognised directly in AOCI

935

1,435

Deferred tax on remeasurement of the net defined benefit pension plans

(320)

(368)

Others

100

73

4,519

4,207

2022

2021

(24)

(102)

Cash flow hedges

2,180

1,323

Deferred tax on remeasurement of the net defined benefit pension plans

1,806

2,126

Total

3,962

3,347

Net deferred tax assets at 31 December

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

Financial assets at fair value through OCI

34

2. Notes to the IFRS Consolidated Financial Statements
Airbus Performance

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

Other movements

Movement throughincome statement

31 December 2022

DeferredR&D tax tax benefit
credits (expense)

Deferredtax
assetsDeferredtax
liabilities

Deferredtax
assetsDeferredtax
liabilities

OCI /IAS 19Others (1)Intangible assets

249

(551)

0

(26)

0

41

305

(592)

Property, plant and equipment

49

(813)

0

(1)

0

(281)

76

(1,122)

Investments and other long‑term financial assets

1,221

(108)

0

6

0

304

1,497

(74)

Inventories

3,658(1,493)

0

(1)

0

478

3,745

(1,103)

Receivables and other assets

806(1,489)

1,986

4

0

(2,721)13(1,427)

Prepaid expenses

11

(3)

0

(1)

0

3

10

0

1,071

12

(770)

43

0

(54)

580

(278)

754

(137)

0

24

0

(694)

234

(287)

2,930

(1,823)

(900)

(4)

0

2,297

3,790

(1,290)

(5)

(242)

0

2

0

212

84

(117)

NOLs and tax credit carry forwards

2,519

0

0

23

5

(41)

2,506

0

Deferred tax assets (liabilities) before offsetting

13,263(6,647)

316

69

5

(456)

12,840(6,290)

Valuation allowances on deferred tax assets(2,409)

0

299

(20)

46

53

(2,031)0

Set‑off(6,531)

6,531

0

0

0

0

(6,126)

6,126

Net deferred tax assets (liabilities)

4,323

(116)

615

49

51

(403)

4,683

(164)

(In € million)

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

35

2. Notes to the IFRS Consolidated Financial Statements
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

DeferredR&D tax tax benefit
credits (expense)

Deferredtax
assetsDeferredtax
liabilities

Deferredtax
assetsDeferredtax
liabilities

OCI /IAS 19Others (1)Intangible assets

186

(489)

0

(71)

0

72

249

(551)

Property, plant and equipment

30

(313)

0

67

0

(548)

49

(813)

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)

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)

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)0Set‑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)

(In € million)

Prepaid expenses

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

19.

Earnings per Share
2022

2021

Profit for the period attributable to equity owners of the parent (Net income)€4,247 million€4,213 million

Weighted average number of ordinary shares

787,080,579

785,326,074

€5.40

€5.36

Basic earnings per share

Diluted earnings per share — The Company’s dilutive potential ordinary shares are equity‑settled Performance Shares relating toLong‑Term Incentive Plans (“LTIP”).
In 2022, a total of 672,906 equity‑settled Performance Shares was considered in the calculation of diluted earnings per share. LTIP
2022 plan has been excluded from the calculation because of its antidilutive effect.
2022

2021

Profit for the period attributable to equity owners of the parent (Net income), adjusted for diluted
calculation€4,247 million€4,213 million

Weighted average number of ordinary shares (diluted)

787,753,485

785,761,995

€5.39

€5.36

Diluted earnings per share36

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

2.5 Operational Assets and Liabilities
20.

Intangible Assets

Intangible assets comprise (i) goodwill (see “– Note 8: Scope of Consolidation”), (ii) capitalised development costs (see “– Note 4:
Significant Accounting Policies”) and (iii) other intangible assets, e.g. internally developed software and acquired intangible assets.
Intangible assets with finite useful lives are generally amortised on a straight‑line basis over their respective estimated useful lives(three to ten years) to their estimated residual values.
31 December 2022 and 2021 comprise the following:
31 December 2022

31 December 2021

Gross amountAmortisation /Impairment

Net book value

Gross amountAmortisation /Impairment

Net book value

Goodwill

14,205(1,040)13,165

14,072(1,044)

13,028

Capitalised development
costs

2,801

(1,319)

1,482

2,534

(1,248)

1,286

Other intangible assets

5,350(3,229)

2,121

5,043

(2,990)2,053

22,356(5,588)

16,76821,649(5,282)

16,367(In € million)

Total

Net Book Value
Balance at
1 January
2022

Exchangedifferences

Additions

Changes in
consolidation
scope

Disposals

Amortisation /Impairment

Balance at
31 December
2022

Reclassification

Goodwill

13,028

10

0

127

0

0

0

13,165

Capitalised
development
costs

1,286

(12)

319

0

(1)

0

(110)

1,482

Other intangible
assets

2,053

89

160

159

5

(7)

(338)

2,121

16,367

87

479

286

4

(7)

(448)

16,768

Balance at
1 January
2021

Exchangedifferences

Additions

Changes in
consolidation
scope

Reclassification

Disposals

Amortisation /Impairment

Balance at
31 December
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
assets

1,942

113

199

(1)

16

(5)

(211)

2,053

16,199

153

352

(1)

2

(21)

(317)

16,367(In € million)

Total(In € million)

Total

Intangible assets increased by €+401 million to €16,768 million (2021: €16,367 million). Intangible assets mainly relate to goodwillof €13,165 million (2021: €13,028 million). The increase in goodwill is primarily due to the acquisitions of VAS Aero Services, LLC
and ZF Luftfahrttechnik GmbH (see “– Note 9: Acquisitions and Disposals”).

37

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

Capitalised Development Costs
The Company has capitalised development costs in theamount of €1,482 million as of 31 December 2022(€1,286 million as of 31 December 2021), for Airbus
programmes (€785 million), Airbus Defence and Space(€372 million) and Airbus Helicopters (€325 million). The
Company believes that its current portfolio of aircraft andhelicopters, which represents a significant portion of its
Capitalised Development Costs, could play a pivotal role inachieving near term targets set out by the Company and its

customers’ decarbonisation ambitions. This will be achieved by
the replacement of less fuel efficient aircraft. The Company’scommitment to certify all current aircraft and helicopter
programmes to be capable of flying on 100% SAF by 2030
would further substantiate their useful life. Therefore,
management estimates that 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 anindication that a non‑financial asset or a cash generating unit(“CGU”) to which the asset belongs may be impaired. In
addition, intangible assets with an indefinite useful life,
intangible assets not yet available for use and goodwill aretested for impairment annually, irrespective of whether there is
any indication for impairment. An impairment loss is recognisedin the amount by which the asset’s carrying amount exceeds its
recoverable amount. For the purpose of impairment testing,any goodwill is allocated to the CGU or group of CGUs in a
way that reflects the way goodwill is monitored for internalmanagement purposes.
The discounted cash flow method is used to determine therecoverable amount of a CGU or the group of CGUs to which
goodwill is allocated. The discounted cash flow method isparticularly sensitive to the selected discount rates andestimates of future cash flows by management. Discount rates
are based on the weighted average cost of capital (“WACC”)
for a CGU or the groups of CGUs. The discount rates arecalculated based on a risk‑free rate of interest and a market
risk premium. In addition, the discount rates reflect the current

market assessment of the risks specific to each group of CGUs
by taking into account specific peer group information on beta
factors, leverage and cost of debt. Consequently, slightchanges to these elements can materially affect the resulting
valuation and therefore the amount of a potential impairment
charge.
These estimates are influenced by several assumptions
including the growth rate of CGUs where a rate of 1% has been
applied, the increase of deliveries in the coming years, theavailability and composition of future defence and institutional
budgets, and foreign exchange fluctuations or implications
arising from the volatility of capital markets. Cash flow
projections take into account past experience and represent
management’s best estimate of future developments whichalign with the Company’s climate‑related commitments.
The Company tested the intangible assets for which anindicator of impairment was identified. In particular, theCompany tested the intangible assets associated with someaircraft programmes and concluded that no impairment wasnecessary.

As of 31 December 2022 and 2021, goodwill was allocated to CGUs or group of CGUs and is summarised in the following
schedule:(In € million)

AirbusAirbusHelicopters

Airbus Defence
and Space

Eliminations

Consolidated
AirbusGoodwill as of 31 December 2022

10,816

199

2,150

0

13,165

Goodwill as of 31 December 2021

10,731

139

2,158

0

13,028The goodwill mainly relates to the creation of the Company in 2000 and the Airbus Combination in 2001.
The annual impairment tests performed in 2022 led to no impairment charge. The Company performed sensitivity tests in order toconfirm that the recoverability of its long‑lived assets was not impaired by climate change. No reasonably possible changes in themain assumptions used (including climate change) would cause the value in use of the goodwill to fall below its carrying value.

General Assumptions Applied in the Planning Process
The basis for determining the recoverable amount is the value
in use of the CGUs. Generally, cash flow projections used for38

the Company’s impairment testing are based on operativeplanning.

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

The operative planning, used for the impairment test, is basedon the following key assumptions which are relevant for all
CGUs:

General economic data derived from external macroeconomic
and financial studies have been used to derive the general key
assumptions.

– increase of expected future labour expenses of 6.5% for2023 including an inflation rate of 3.5%;

The operative planning also takes into account expenses andinvestments the Company has identified to progress towards
its decarbonisation ambition.

– future interest rates projected per geographical market, for
the European Monetary Union, the UK and the US;– future exchange rate of 1.05 US$/€ for 2023 to convert ineuro the portion of future US dollar which is not hedged (see“– Note 38: Financial Instruments”);

In addition to these general planning assumptions, the following
additional CGU specific assumptions, which represent
management’s current best assessment as of the date of these
Consolidated Financial Statements, have been applied.

Airbus– The planning takes into account both the current market
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, expectedcash flows generated beyond the planning horizon are
considered through 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 14.1% (2021: 11%).

Airbus Helicopters– The planning takes into account the evolution ofprogrammes based upon the current backlog and anassessment of order intake for platforms and services.
– In the absence of long‑term financial reference, expectedcash flows generated beyond the planning horizon are
considered through a terminal value.
– Long‑term commercial assumptions in respect of market
share, deliveries and market value are based on the latest

helicopter market forecast. The market is expected to beresilient due to existing mission segment diversity however, it
is expected to remain a challenging environment due topersistent economic uncertainties lengthening the sales cycle
in particular in parapublic and military due to budget
allocation postponement or reduction and delayed growth of
emerging markets especially in Asia.
– Cash flows are discounted using a euro weighted pre‑tax
WACC of 13.1% (2021: 9.3%).

Airbus Defence and Space– Overall the defence and space markets are expected to havea moderate growth during the period of the operativeplanning horizon.

– In the absence of long‑term financial reference, expectedcash flows generated beyond the planning horizon are
considered through a terminal value.

– Business growth is underpinned by growing defence
opportunities. Underlying performance is improved byfocusing on project delivery, cost control and efficiency.

– Cash flows are discounted using a euro weighted pre‑tax
WACC of 11.5% (2021: 8.3%).

39

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

21.

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 2022 and 2021 comprises the following:
31 December 2022

31 December 2021

Gross Depreciation /amountImpairment(In € million)

Net book
value

Gross
amountDepreciation /Impairment

Net book
value

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

10,536(5,539)4,997

10,344(5,324)

5,020

Technical equipment and machinery

21,982(15,286)

6,696

23,697(16,609)

7,088

Other equipment, factory and officeequipment (1)3,932(3,107)

825

3,853

(3,013)840

Construction in progress

2,241

0

2,241

1,890

0

1,890

Right‑of‑use assets (2)

Total

2,578

(832)

1,746

2,486

(788)

1,698

41,269(24,764)

16,50542,270(25,734)

16,536

Balance at
31 December
2022(1) Includes the net book value of aircraft under operating lease (see “– Note 28: Sales Financing Transactions”).
(2) The net book value of Land and Buildings under Right‑of‑use assets amounts to €1,625 million.

Net Book Value
Balance at
1 January
2022

Exchangedifferences

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

5,020

Technical equipment
and machinery
Other equipment,
factory and officeequipment
Construction inprogress(In € million)

Right‑of‑use assets

Total

40

Additions

Changes in
consolidation
scope

Reclassification

Disposals

Depreciation /Impairment

(20)

21

4

227

(21)

(234)

4,997

7,088

10

310

2

942

(44)

(1,612)

6,696

840

10

299

6

62

(215)

(177)

825

1,890

(5)

1,479

0

(1,123)

0

0

2,241

1,698

33

308

0

(29)

(40)

(224)

1,746

16,536

28

2,417

12

79

(320)

(2,247)

16,505

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

Balance at
1 January
2021

Exchangedifferences

Additions

Changes in
consolidation
scope

Reclassifications

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

4,681

43

48

5

Technical equipment
and machinery
Other equipment,
factory and officeequipment

7,068

106

225

811

14

Construction inprogress

2,310

Right‑of‑use assets

1,804

16,674(In € million)

Total

Disposals

Depreciation /Impairment (1)Balance at
31 December
2021

641

(71)

(327)

5,020

1

1,038

(66)

(1,284)

7,088

150

2

66

(7)

(196)

840

16

1,289

2

(1,678)

(49)

0

1,890

59

240

0

(96)

(49)

(260)

1,698

238

1,952

10

(29)

(242)

(2,067)

16,536(1) Accelerated depreciation previously included in onerous contract provision has been offset with the release of the provision in the presentation of the Consolidated Statement of
Cash Flows for the year ended 2021.

Property, plant and equipment decreased by €-31 million to €16,505 million (2021: €16,536 million). Property, plant and equipment
include right‑of‑use assets for an amount of €1,746 million as of 31 December 2022 (2021: €1,698 million).
Following the launch failure of the two satellites Pléiades Neo 5 and 6 on 21 December 2022, the corresponding fixed assets were
written‑off for a total of €248 million and an impairment of €184 million has been recorded for the remaining Pléiades Neo assets value
partly offset by the insurance receivable of €200 million, all recognised as of 31 December 2022 in other income and other expenses (see“– Note 15: Other Income and Other Expenses”).
Based on management’s best estimate, there is no impact on the useful life of Property, plant and equipment, considering the Company’s
journey towards sustainable aerospace, climate risks and current amortisation schemes over asset life (see “– Note 7: Climate Impacts”).
For details on assets related to lease arrangements on sales financing, see “– Note 28: Sales Financing Transactions”.

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

2022

2021

France

7,423

7,570

Germany

4,124

4,185

UK

1,433

1,604

Spain

1,267

1,273

Other countries

2,258

1,904

16,505

16,536Total

41

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

The Company as lessee
The Company leases mainly real estate assets, cars andequipment (such as land, warehouses, storage facilities andoffices).
Short‑term leases and leases of low‑value assets refer mainly to IT
equipment (e.g. printers, laptops and mobile phones) and otherequipment.
The Company incurred interest expense on lease liabilities of€31 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.

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 located in France,
Germany, the US, Canada and China. As lease contracts arenegotiated on an individual basis, lease terms contain a wide rangeof different terms and conditions. Leases are typically made for a
fixed period of 3‑25 years and may include extension, terminationand other options, which provide operational flexibility to theCompany.

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

The discount rate used to determine the right‑of‑use asset andthe lease liability for each country and leased asset is
calculated based on the incremental borrowing rate atinception of the lease. The Company calculated the rateapplicable to each lease contract on the basis of the lease
duration.

Other leases

The maturity analysis of lease liabilities, based on contractual
undiscounted cash flows is shown in “Note 38.1 – Financial
Risk Management”.

Commitments related to property, plant and equipment
comprise contractual commitments for future capital expendituresand contractual commitments for purchases of “Land, leasehold
improvements and buildings including buildings on land owned byothers” (€1,144 million as of 31 December 2022, 2021:€598 million).

22.

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

Off‑Balance Sheet Commitments

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

2022

2021

Other investments

2,641

2,511

Other long‑term financial assets

1,549

1,490

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

4,190

4,001

665

537

4,855

4,538

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%, 2021: 9.90%) amounting to €1,309 million at
31 December 2022 (2021: €786 million). It is partly offset by
the decrease in fair value of other investments.

42

Other long‑term financial assets and the current portion ofother long‑term financial assets include other loans in theamount of €2,129 million as of 31 December 2022 (2021:€1,909 million), and the sales financing activities in the form offinance lease receivables and loans from aircraft financing.

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

23.

Contract Assets and Contract Liabilities, Trade Receivables andTrade Liabilities

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

governmental contracts such as A400M, Tiger, NH90), contract
liabilities are classified as current when the relating inventories
or receivables are expected to be recognised within the normal
operating cycle of the long‑term contract.
Trade receivables arise when the Company provides goods orservices directly to a customer with no intention of trading thereceivable. Trade receivables include claims arising fromrevenue recognition that are not yet settled by the debtor. Trade
receivables are initially recognised at their transaction prices
and are subsequently measured at amortised cost less any
allowances for impairment. Gains and losses are recognised in
the Consolidated Income Statement when the receivables are
derecognised and impaired.
Impairment and allowances of trade receivables andcontract assets are measured at an amount equal to thelife‑time expected loss as described in “– Note 38: Financial
Instruments”.

Contract Assets, Contract Liabilities and Trade Receivables
Significant changes in contract assets and contract liabilities during the period are as follows:
2022

2021

Contract
assetsContract
liabilities

Contract
assetsContract
liabilities

Revenue recognised that was included in the contract liability
balance at 1 January-(23,494)-(19,311)

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

17,792

Transfers from contract assets recognised at 1 January(2,798)-(5,765)-

Increase as a result of changes in the measure of progress

3,034

-

6,045

-

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

As of 31 December 2022, trade receivables amounting to €301 million (2021: €210 million) will mature after more than one year.
The respective movement in the allowance for expected credit losses in respect of trade receivables and contract assets during theperiod was as follows:(In € million)

2022

2021

Allowance balance at 1 January

(363)

(306)

Utilisations / disposals and business combinations

56

47

Additions

(73)

(104)

(380)

(363)

Allowance balance at 31 December43

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

Trade Liabilities
Trade liabilities of €13,261 million (2021: €9,693 million) increasedby €+3,568 million, mainly driven by higher volume and payment
terms increase linked to certain agreements reached with suppliers.

24.

As of 31 December 2022, trade liabilities amounting to€86 million (2021: €89 million) will mature after more than one
year.

Inventories
31 December 2022

31 December 2021

Gross amount

Write‑down

Net book value

Gross amount

Write‑down

Net book value

Raw materials andmanufacturing supplies

4,387

(643)

3,744

3,773

(705)

3,068

Work in progress

20,484(1,229)19,255

19,553(2,010)17,542Finished goods and partsfor resale

5,218(1,060)

4,158

5,356

(800)

4,556

Advance payments to
suppliers

5,114

(69)

5,045

3,491

(119)

3,372

35,203(3,001)

32,202

32,173(3,634)28,538(In € million)

Total

Inventories of €32,202 million (2021: €28,538 million)
increased by €+3,664 million. This is driven by Airbus(€ +3,825 million), mainly reflecting the inventory build up to
support ramp up. It also includes higher advance payments
made to suppliers.
In 2022, write‑downs of inventories in the amount of€-394 million (2021: €-655 million) are recognised in cost of25.

sales, whereas reversal of write‑downs amounts to €243 million(2021: €459 million). At 31 December 2022, €18,099 million ofwork in progress and €4,015 million of finished goods andparts for resale were carried at net realisable value.
Inventories recognised as an expense during the periodamount to €35,710 million (2021: €32,388 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 andtechnical parameters considered for provision calculations arecomplex. Hence uncertainty exists with regard to the timing
and amounts of expenses to be taken into account.
31 December(In € million)

2022

2021

Provisions for pensions

3,509

7,072

Other provisions

7,514

8,209

11,023

15,281

thereof non‑current portion

6,896

10,771

thereof current portion

4,127

4,510

Total

44

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

As of 31 December 2022, provisions for pensions decreasedby €-3.6 billion. It mainly reflects the increase of the discountrates in Germany, France, Canada and the UK of €7.8 billion,
resulting from market volatility related mainly to the Ukraine
crisis. It is partly offset by deteriorated performance of the asset
market values for €2.7 billion and increased inflation
assumptions particularly in Germany and France for€0.5 billion.
As a consequence of the increased discount rates a
non‑current asset of €0.6 billion has been accounted for toreflect the surplus in two pension funds in the UK, the Airbus

Section of the participation in BAE Systems Pension Schemeand the Company UK Pension Scheme (see “– Note 27: Other
Assets and Other Liabilities”).
Furthermore, due to the re‑measurement of past service cost in
the retirement obligation, a gain of €0.4 billion was recognisedin the first quarter 2022.
Other provisions decreased mainly due to the decrease inprovisions for onerous contracts due to the utilisation and netpresentation of the A400M programme losses against
inventories, the reduction in the A220 programme and therelease of compliance‑related provisions.

Movements in other provisions during the year were as follows:
Balance at
1 January
2022

Exchangedifferences

Increasefrompassage oftime

Onerous contracts

2,249

56

0

300

211

(945)

(63)

1,808

Outstanding costs

1,376

3

0

376

0

(283)

(98)

1,374

0

0

0

(11)

(2)

5

(In € million)

Aircraft financing risks(1)

Reclassification /Change inconsolidated
Additions
group

Used

Balance at
31 December
Released
2022

17

1

Obligation from services
and maintenanceagreements

491

1

8

11

0

(53)

(74)

384

Warranties

372

5

(3)

99

12

(53)

(35)

397

Personnel‑related
provisions (2)

769

1

2

421

(25)

(364)

(61)

743

Litigation andclaims (3)

728

2

0

156

(9)

(29)

(517)

331

Asset retirement

151

0

5

9

0

0

(18)

147

Other risks andcharges

2,056

(4)

(6)

812

(8)

(395)

(130)

2,325

Total

8,209

65

6

2,184

181

(2,133)

(998)

7,514

(1) See “– Note 28: Sales Financing Transactions”.
(2) See “– Note 31: Personnel‑Related Provisions”.
(3) See “– Note 39: Litigation and Claims”.

Provisions for onerous contracts in 2022 mainly include theutilisation and net presentation of the A400M programme
losses against inventories and the reduction in the A220
programme.
Personnel‑related provisions include restructuring provisions
and other personnel charges. For more details, see “– Note 31:
Personnel‑Related Provisions”.
Provisions for litigation and claims decreased mainly due tothe release of compliance‑related provisions for an amount of€0.3 billion.
Contingent assets and contingent liabilities — The
Company is exposed to technical and commercial contingent
obligations due to the nature of its businesses. To mitigate thisexposure, the Company has subscribed a Global Aviation

Insurance Programme (“GAP”). Information required under
IAS 37 “Provisions, Contingent Assets and Contingent
Liabilities” is not disclosed if the Company concludes that
disclosure can be expected to prejudice seriously its position ina dispute with other parties.
For other contingent liabilities, see “– Note 39: Litigation and
Claims” and “– Note 13: Revenue and Gross Margin” (mainly
A400M programme).
Other commitments include contractual guarantees andperformance bonds to certain customers as well as
commitments for future capital expenditures and amounts
which may be payable to commercial intermediaries if future
sales materialise.

45

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

26.

Other Financial Assets and Other Financial Liabilities

Other Financial Assets
31 December
2022

2021

Positive fair values of derivative financial instruments (1)

753

664

Others28

27

Total non‑current other financial assets

781

691

Receivables from related companies

1,104

803

Positive fair values of derivative financial instruments (1)

1,141

341

297

307

Total current other financial assets

2,542

1,451

Total

3,323

2,142

(In € million)

Others(1) See “– Note 38: Financial Instruments”.

Other Financial Liabilities
31 December(In € million)

2022

2021

Liabilities for derivative financial instruments (1)

6,163

2,640

European Governments’ refundable advances (2)

3,717

3,730

237

192

Total non‑current other financial liabilities

10,117

6,562

Liabilities for derivative financial instruments (1)

3,450

1,923

European Governments’ refundable advances (2)

140

131

Liabilities to related companies

186

180

Others

297

298

4,073

2,532

14,190

9,094

4,073

2,532

OthersTotal current other financial liabilities

Total
thereof other financial liabilities due within 1 year

(1) See “– Note 38: Financial Instruments”.
(2) Refundable advances from European Governments are provided to the Company to finance research and development activities for certain projects on a risk‑sharing
basis, i.e. they are repaid to the European Governments subject to the success of the project.

The total net fair value of derivative financial instruments
decreased by €-4,161 million to €-7,719 million (2021:€-3,558 million) as a result of the strengthened US dollar versus
the euro associated with the mark to market valuation of thehedge portfolio.
In 2022, the European Governments’ refundable advances46

decreased by€3,861 million).

€-4

millionto€3,857

million(2021:

The allocation of European Governments’ refundable advances
between non‑current and current presented in theConsolidated Financial Statements ended 31 December 2022
is based on the applicable contractual repayment dates.

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

27.

Other Assets and Other Liabilities

Other Assets
31 December
2022

2021

Cost to fulfil a contract

337

301

Prepaid expenses

149

116

Others1,386

484 (1)

Total non‑current other assets

1,872

901

Value added tax claims

1,732

1,183

Cost to fulfil a contract

448

499

Prepaid expenses

161

392

Others509

319

Total current other assets

2,850

2,393

Total

4,722

3,294

(In € million)(1) 2021 figures restated in accordance with 2022 presentation.

As of 31 December 2022, non‑current other assets include€673 million of payments to be made to Airbus by suppliers
after aircraft delivery (2021: €411 million). They are recorded asa reduction of cost of goods sold at the time of aircraft delivery.
These future payments are discounted to reflect specificcontractual terms and repayment profile.

As of 31 December 2022, a non‑current asset of €0.6 billion
has been accounted for to reflect the surplus in two pension
funds in the UK as a consequence of the increased discountrates (see “– Note 25: Provisions”).

Other Liabilities
31 December
2022

2021

Others498

583

Total non‑current other liabilities

498

583

Tax liabilities (excluding income tax)

1,082

771

Others

2,721

2,761

Total current other liabilities

3,803

3,532

Total

4,301

4,115

3,803

3,532

(In € million)

thereof other liabilities due within 1 year

As of 31 December 2022, current other liabilities mainly comprise tax (excluding income tax) and personnel liabilities.

47

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

28.

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 21: Property, Plant
and Equipment”). Rental income from operating leases isrecorded as revenue on a straight‑line basis over the term of
the lease;(ii) finance leases and loans – When, pursuant to a financing
transaction, substantially all the risks and rewards ofownership of the financed aircraft reside with a third party,
the transaction is characterised as either a finance lease or aloan. In such instances, revenue from the sale of the aircraft
are recorded upon delivery, while financial interest isrecorded over time as financial income. The outstandingbalance of principal is recorded on the Statement of
Financial Position (on‑balance sheet) in long‑term financial
assets, net of any accumulated impairments;(iii) inventories – Second hand aircraft acquired as part of acommercial buyback transaction, returned to Airbus after apayment default or at the end of a lease agreement areclassified as inventories held for resale if there is nosubsequent lease agreement in force (see “– Note 24:
Inventories”).
Off‑balance sheet commitments — Financing commitments
are provided to the customer either as backstop commitments
before delivery, asset value guarantees at delivery or counter
guarantees:(i) backstop commitments are guarantees by Airbus, madewhen a customer‑order is placed, to provide financing to thecustomer in the event that the customer fails to securesufficient funding when payment becomes due under theorder. Such commitments are not considered to be part ofGross Customer Financing Exposure as (i) the financing is
not in place, (ii) commitments may be transferred in full orpart to third parties prior to delivery, (iii) past experiencesuggests it is unlikely that all such proposed financings
actually will be implemented and, (iv) Airbus retains the asset
until the aircraft is delivered and does not incur an unusual
risk in relation thereto. In order to mitigate customer credit
risks for Airbus, such commitments typically containfinancial conditions, such as condition precedents, whichguaranteed parties must satisfy in order to benefit
therefrom;(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

48

associated with such guarantees to be acceptable, because(i) the guarantee only covers a tranche of the estimatedfuture value of the aircraft, and its level is considered
prudent in comparison to the estimated future value of eachaircraft, and (ii) the exercise dates of outstanding asset value
guarantees are distributed through 2031.
As of 31 December 2022, the nominal value of asset value
guarantees considered as variable considerations under
IFRS 15 provided to beneficiaries amounts to €247 million(2021: €381 million), excluding €9 million (2021: €9 million)
where the risk is considered to be remote. The present value ofthe risk inherent in asset value guarantees where a settlement
is being considered probable is fully provided for and includedin the total of contract liabilities for an amount of €236 million(2021: €345 million) (see “– Note 23: Contract Assets, Contract
Liabilities and Trade Receivables, and Trade Liabilities”).
Exposure — In terms of risk management, the Company
manages its gross exposure arising from its sales financing
activities (“Gross Customer Financing Exposure”) separately for(i) customer’s credit risk and (ii) asset value risk.
Gross Customer Financing Exposure is the sum of (i) thebook value of operating leases before impairment, (ii) the
outstanding principal amount of finance leases or loans due
before impairment, (iii) the guaranteed amounts under financial
guarantees (iv) the book value of second hand aircraft for resale
before impairment, and (v) the outstanding value of any otherinvestment in sales financing structured entities before
impairment. This Gross Customer Financing Exposure may
differ from the value of related assets on the Company’s
Statement of Financial Position and related off‑balance sheet
contingent commitments, mainly because (i) assets arerecorded in compliance with IFRS, but may relate totransactions that are financed on a limited recourse basis and(ii) the carrying amount of the assets on the Consolidated
Statement of Financial Position may have been adjusted for
impairment losses.
Gross
Customer
Financing
Exposureamountsto
US$ 0.4 billion (€0.3 billion) (2021: US$ 0.5 billion (€0.4 billion)).
Net exposure is the difference between Gross Customer
Financing Exposure and the collateral value. Collateral value isassessed using a dynamic model based on the net present
value of expected future receivables, expected proceeds fromresale and potential cost of default. This valuation model yields
results that are typically lower than residual value estimates by
independent sources in order to allow for what management
believes is its conservative assessment of market conditions
and for repossession and transformation costs. The net
exposure is provided for by way of impairment losses and otherprovisions.

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

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

The Company endeavours to limit its sales financing exposureby sharing its risk with third parties usually involving the creationof a structured entity. Apart from investor interest protection,interposing a structured entity offers advantages such as
flexibility, bankruptcy remoteness, liability containment andfacilitating sell‑downs of the aircraft financed. An aircraft
financing structured entity is typically funded on a non‑recourse
basis by a senior lender and one or more providers ofsubordinated financing. When the Company acts as a lender tosuch structured entities, it may take the role of the senior lenderor the provider of subordinated loan. The Company
consolidates an aircraft financing structured entity if it is
exposed to the structured entity’s variable returns and has theability to direct the relevant remarketing activities. Otherwise, it
recognises only its loan to the structured entity under otherlong‑term financial assets. At 31 December 2022 the carrying
amount of its loans from aircraft financing amounts to€49 million (2021: €77 million). This amount also represents theCompany’s maximum exposure to loss from its interest in
unconsolidated aircraft financing structured entities.

On‑Balance Sheet Operating and Finance Leases
The future minimum operating lease payments (undiscounted) due from customers to be included in revenue, and the future
minimum lease payments (undiscounted) from investments in finance leases to be received in settlement of the outstanding
receivable at 31 December 2022 and 31 December 2021 are as follows:
Aircraft underoperating lease

Finance leasereceivables

Not later than one year

10

6

Later than one year and not later than five years

48

35

Later than five years

72

21

31 December 2022

130

62

Aircraft underoperating lease

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

(In € million)(In € million)

Customer Financing Cash Flows
Direct customer financing cash flows amount to €-146 million in 2022 (2021: €28 million).

49

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

Customer Financing Exposure
The on‑balance sheet assets relating to sales financing, the off‑balance sheet commitments and the related financing exposure (notincluding asset value guarantees) as of 31 December 2022 and 2021 are as follows:
31 December 2021

31 December 2022

AirbusAirbusHelicopters

Total

AirbusAirbusHelicopters

Total

Operating leases (1)

102

0

102

105

13

118

Finance leases and loans

101

31

132

145

19

164

Inventories

37

0

37

11

0

11

Other investments

66

0

66

62

0

62

On‑balance sheet customer financing

306

31

337

323

32

355

Off‑balance sheet customer financing

6

2

8

41

26

67

Gross Customer Financing Exposure

312

33

345

364

58

422

Collateral values

(262)

(33)

(295)

(282)

(58)

(340)

Net exposure

50

0

50

82

0

82

Operating leases

0

0

0

(7)

0

(7)

Finance leases and loans

(40)

0

(40)

(53)

0

(53)

On‑balance sheet commitments - inventories

(5)

0

(5)

(6)

0

(6)

Off‑balance sheet commitments - provisions (2)

(5)

0

(5)

(16)

0

(16)

Asset impairments, fair value adjustments
and provisions

(50)

0

(50)

(82)

0

(82)

(In € million)(1) For 2022 and 2021, depreciation amounts to €11 million and €1 million respectively and related accumulated depreciation is €14 million and €8 million respectively.
(2) See “– Note 25: Provisions, Contingent Assets and Contingent Liabilities”.

2.6 Employees Costs and Benefits
29.

50

Number of Employees
AirbusAirbusHelicopters

Airbus Defence
and Space

Consolidated
Airbus31 December 2022

79,13420,80334,330134,267

31 December 2021

73,56020,12632,809126,495

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

30.

Personnel Expenses
2022

2021

13,50912,913136

356

13,645

13,269(In € million)

Wages, salaries and social contributions
Net periodic pension cost (1)Total(1) See “– Note 32: Post‑Employment Benefits”.

In 2022, personnel expenses include €0.3 billion of exceptional premiums granted to Airbus employees in the context of elevatedinflation.

31.

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, recognisedin other personnel charges.
Balance at
1 January
2022

Exchangedifferences

Increasefrompassage oftime

Restructuring
measures /pre‑retirement
part‑time work

125

2

0

34

Other personnel
charges

644

(1)

2

Total

769

1

2

(In € million)

32.

Reclassification /Change inconsolidated
Additionsgroup

Balance at
31 December
2022
Used

Released

(6)

(55)

(9)

91

387

(19)

(309)

(52)

652

421

(25)

(364)

(61)

743

Post‑Employment Benefits
31 December(In € million)

2022

2021

Provisions for retirement plans

3,302

6,240

207

832

3,509

7,072

Provisions for deferred compensation

Retirement plans and similar obligations

In addition, as a consequence of the increased discount rates a non‑current asset of €642 million has been accounted for to reflect
the surplus in two pension funds in the UK, the Airbus Section of the participation in BAE Systems Pension Scheme and theCompany UK Pension Scheme (see “– Note 27: Other Assets and Other Liabilities”).

51

2. Notes to the IFRS Consolidated Financial Statements
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.

an insolvency of the subsidiaries concerned. Some portions of
the obligation must be covered with securities in the sameamount, while other portions must be covered by 115%.

Provision for deferred compensation represents obligations thatarise if employees elect to convert part of their remuneration orbonus into an equivalent commitment for deferredcompensation which is treated as a defined benefit
post‑employment plan.

United Kingdom — The Company UK Pension Scheme (“theScheme”) was implemented by Airbus Defence andSpace Ltd., Stevenage (UK) as the principal employer. This plancomprises all eligible employees of Airbus Defence andSpace Ltd. as well as all personnel, who were recruited by oneof the Company subsidiaries located in the UK andparticipating in the scheme. The major part of the obligation isfunded by scheme assets due to contributions of theparticipating companies. The Scheme is a registered pension
scheme under the Finance Act 2004. The trustee’s only formal
funding objective is the statutory funding objective under thePensions Act part 3 2004, which is to have sufficient andappropriate assets to cover the Scheme’s obligations. Since
1 November 2013, this plan is generally closed for joiners, whoparticipate in a separate defined contribution plan.

France — The French pension system is operated on a “payas you go” basis. Besides the basic pension from the Frenchsocial security system, each employee is entitled to receive acomplementary pension from defined contribution schemes
AGIRC‑ARRCO (Association pour le régime de retraite
complémentaire des salariés and Association générale desinstitutions de retraite des cadres). Moreover, French law
stipulates that employees are paid retirement indemnities in theform of lump sums on the basis of the length of service, which
are considered as defined benefit obligations.
Germany — The Company has a pension plan (P3) for
executive and non‑executive employees in place. Under thisplan, the employer provides contributions for the services
rendered by the employees, which are dependent on theirsalaries in the respective service period. These contributions
are converted into components which become part of theaccrued pension liability at the end of the year. Total benefits
are calculated as a career average over the entire period ofservice. Certain employees that are not covered by this plan
receive retirement indemnities based on salary earned in thelast year or on an average of the last three years of
employment. For some executive employees, benefits are
dependent on the final salary of the respective individual at thedate of retirement and the time period served as an executive.
In 2018, Airbus introduced the new Airbus Pensions Plan(“APP”) with security‑linked benefits in Germany, which all new
entrants after 1 January 2018 will join. Accordingly, the existing
pension plan has been closed for new entrants. As of
1 January 2019, deferred compensation, which is financed by
the employees, is offered exclusively in APP for all employees.
In 2020 the Company transferred about half of the active
population of the P3 plan into APP. With effect as of 1 January
2020 these employees will accrue future benefits under APP
but not in P3 anymore. Benefits related to past service are notaffected by this transfer.
Parts of the pension obligation in Germany are funded byassets invested in specific funding vehicles. Besides a relief
fund (“Unterstützungskasse”), the Company has implemented aContractual Trust Arrangement. The Contractual Trust
Arrangement structure is that of a bilateral trust arrangement.
Assets that are transferred to the relief fund and theContractual Trust Arrangement qualify as plan assets under
IAS 19.
In the trust arrangements between the trust and theparticipating companies a minimum funding requirement is
stipulated for the portion of the obligation for deferredcompensation, which is not protected by the pension
guarantee association or Pensions‑Sicherungs Verein in case of

52

Moreover, the Company participates in the UK in several
funded trustee‑administered pension plans for both executive
and non‑executive employees with BAE Systems being theprincipal employer. The Company’s most significant
investments in terms of employees participating in these BAE
Systems UK pension plans is Airbus Operations Ltd.
Participating Airbus Operations Ltd. employees have continued
to remain members in the BAE Systems UK pension plans dueto the UK pension agreement between the Company and BAE
Systems and a change in the UK pensions legislation enacted
in April 2006.
For the most significant of these BAE Systems Pension
Schemes, the Main Scheme, BAE Systems, the Company andthe scheme Trustees agreed on a sectionalisation, which was
implemented on 1 April 2016. Although BAE Systems remains
the only principal employer of the Scheme, the Company has
obtained powers in relation to its section which are the same as
if it were the principal employer.
Based on the funding situation of the respective pension
schemes, the pension plan trustees determine the contribution
rates to be paid by the participating employers to adequately
fund the schemes. The different UK pension plans in which theCompany investments participate are currently underfunded.
Airbus Operations Ltd. (for its section of the Main Scheme) andBAE Systems (for the other schemes) have agreed with thetrustees various measures designed to make good theunderfunding. These include (i) regular contribution payments
for active employees well above such which would prevail for
funded plans and (ii) extra employers’ contributions.
In the event that an employer who participates in the BAE
Systems pension schemes fails or cannot be compelled to fulfil
its obligations as a participating employer, the remaining
participating employers are obliged to collectively take on its
obligations.
The Company considers the likelihood of this event as remote.
However, for the Main Scheme the Company considers that its
obligation is in principle limited to that related to its section.

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

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

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

Actuarial risks for the Company
The Defined Benefit Obligation (“DBO”) exposes the Company
to actuarial risks, including mainly the following ones:

partially by the positive development of market values of those
corporate bonds included in plan assets. Generally, the pension
obligation is sensitive to movements in the interest rate leading
to volatile results in the valuation.

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.

Inflation risk — The pension liabilities can be sensitive to
movements in the inflation rate, whereby a higher inflation rate
could lead to an increasing liability. Since some pension plans
are directly related to salaries, increases in compensations
could result in increasing pension obligations. For the deferredcompensation plan P3, which is financed by the employees afixed interest rate has been agreed.

Interest rate risk — The level of the DBO is significantly
impacted by the applied discount rate. The low interest rates inrecent years, particular in the euro‑denominated market
environment, lead to a relatively high net pension liability. If
there is again a decline in returns of corporate bonds, the DBO
will increase in future periods, which might only be offset

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 2022 are as follows:
Pension plans inGermany

FranceParticipation in
BAE Systems
Pension Scheme
in the UK

UK

Canada(Rate in %)

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

Discount rate

3.6

1.1

3.7

1.0

4.8

2.0

5.0

1.9

5.3

3.3

Rate of compensation increase

3.4

2.8

3.0

2.5

3.3

3.3

3.4

3.1

3.0

2.9

Rate of pension increase

2.4

1.7

2.1

1.6

3.0

3.0

3.1

3.1

2.0

2.0

Inflation rate

2.4

1.7

2.1

1.6

3.2

3.2

3.3

3.2

2.0

2.0

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

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

53

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

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

For the UK schemes, the Self‑Administered Pensions S2
mortality tables based on year of birth (as published by 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.

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

18,778Service cost (including past service cost)
Interest cost and income(In € million)
Balance at 1 January 2021

Total

Pensionplans of theCompany

Participation in
BAE Systems
Pension Scheme
in the UK

Total

Total
provisions

4,370

23,148(9,896)(3,272)(13,168)

9,980

225

66

291

0

0

0

291

118

61

179

(69)

(45)

(114)

65

Remeasurements: actuarial (gains) andlosses arising fromchanges in demographic assumptions

48

(6)

42

0

0

0

42

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

95

44

139

0

0

0

139

plan assets

0

0

0

(954)

(387)

(1,341)(1,341)

Changes in consolidation, transfers andothers

(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)

changes in financial assumptions

Foreign currency translation adjustments

163

304

467

(134)

(238)

(372)

95

17,6994,598

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

7,072

Service cost (including past service cost)

(25)

72

47

0

0

0

47

Interest cost and income

217

85

302

(141)

(72)

(213)

89

141

(3)

138

0

0

0

138

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

613

370

983

0

0

0

983

Balance at 31 December 2021

Remeasurements: actuarial (gains) andlosses arising fromchanges in demographic assumptions

plan assets

0

0

0

1,911

740

2,651

2,651

Changes in consolidation, transfers andothers

(34)

0

(34)

9

0

9

(25)

Benefits paid

(442)

(121)

(563)

159

121

280

(283)

Contributions by employer and other plan
participants

80

1

81

(348)

(254)

(602)

(521)

Foreign currency translation adjustments

(67)

(178)

(245)

80

183

263

18

12,936

2,768

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

2,867

Balance at 31 December 2022

The figures shown in the table include the surplus in two
pension funds in the UK, resulting from a defined benefit
obligation and assets of €3,867 million and €4,509 million thathave been accounted as a non‑current asset.

54

In the figures shown in the table, amounts of €1,715 million and€1,508 million are included for the defined benefit obligationand plan assets for deferred compensation plans in Germany(2021: €2,503 million and €1,682 million).

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

The past service cost included in the service cost amounts to€-400 million and €-228 million as of 31 December 2022 and
2021, respectively. The employer contributions amount to€595 million and €6 million for other plan participants as of
31 December 2022 (2021: €533 million and €6 million
respectively).

Additionally, the Company considers liabilities for lump sum
payments (one‑off payment or lump sum instalments) under theGerman P3 and APP pension arrangements in the total amountof €183 million and €172 million as of 31 December 2022 and
2021, respectively.

The funding of the plans is as follows:
31 December
2022

2021

DBO

Plan assets

DBO

Plan assets

873

0

1,406

0

Funded pension plans (partial)

14,831(12,837)

20,891(15,225)

Total

15,704(12,837)

22,297(15,225)(In € million)

Unfunded pension plans

As of 31 December 2022, provisions for pensions decreasedby €-3.6 billion. It mainly reflects the increase of the discountrates in Germany, France, Canada and the UK of €7.8 billion,
resulting from market volatility related mainly to the Ukraine
crisis. It is partly offset by deteriorated performance of the asset
market values for €2.7 billion and increased inflation
assumptions particularly in Germany and France for€0.5 billion.
Furthermore, due to the re‑measurement of past service cost in
the retirement obligation, a gain of €0.4 billion was recognisedin the first quarter 2022.
In 2022, contributions for retirement and deferredcompensation plans amount to €601 million. This mainly
consists of:– payments made to the pension and deferred compensationplans of the Company of €342 million (2021: €667 million),
mainly relating to the Contractual Trust Arrangement inGermany of €171 million (2021: €431 million), the relief fundin Germany of €99 million (2021: €0 million) and theCompany UK scheme of €57 million (2021: €224 million);– payments made to the participation in BAE Systems Pension
Scheme in the UK of €254 million (2021: €96 million).
Contributions of approximately €700 million are expected to bemade in 2023.
The weighted average duration of the DBO for retirement plansand deferred compensation is 15 years at 31 December 2022
(31 December 2021: 18 years).

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

Germany

43%

10%

47%

France

99%

0%

1%

UK

63%

16%

21%

Participation in BAE System Pension Scheme (Main Scheme)

35%

15%

50%

Canada

82%

2%

16%

55

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

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
Deferred
Retirement Compensation
plans
plans

Plan assets
Deferred
Retirement Compensation
plans
plans

Germany

83%

17%

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%

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 2022:
Change in actuarial
assumptions

Impact on DBO
Change at 31 December
2022

2021

15,704

22,297

Increase by 0.5%-point(1,051)(1,899)Decrease by 0.5%-point

1,178

2,187

Increase by 0.25%-point

84

168

Decrease by 0.25%-point

(80)

(160)

Increase by 0.25%-point

259

438

Decrease by 0.25%-point

(250)

(420)

Increase by one year

366

654

Present value of the DBO
Discount rate

Rate of compensation increase

Rate of pension increase

Life expectancy

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

56

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

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

Plan assets allocation
The fair value of the plan assets for retirement plans and deferred compensation can be allocated to the following classes:
2022

2021

QuotedpricesUnquoted
prices

Total

QuotedpricesUnquoted
pricesTotal

Europe

565

0

565

1,539

0

1,539

Rest of the world

128

0

128

408

0

408

Emerging markets

417

0

417

561

0

561

1,959

898

2,857

2,896

693

3,589

Corporates

2,502

1,114

3,616

3,125

283

3,408

Governments

2,370

0

2,370

2,393

0

2,393

725

0

725

328

0

328

Commodities

0

0

0

0

0

0

Hedge funds

0

0

0

0

459

459

Derivatives

0

(278)

(278)

0

(71)

(71)

Property

0

767

767

0

723

723

202

144

346

344

263

607

0

1,324

1,324

0

1,281

1,281

8,868

3,969

12,837

11,594

3,631

15,225(In € million)

Equity securities

Global
Bonds

Pooled investments vehicles

Cash and money market funds
OthersBalance at 31 December

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

2022 consists of fixed income and equity instruments, although
the Company 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.

57

2. Notes to the IFRS Consolidated Financial Statements
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:

Germany

FranceUK

CanadaParticipation in
BAE Systems
Pension Scheme
in the UK

DBO

10,157

1,243

1,100

436

2,768

15,704

Plan assets

7,957

19

1,356

351

3,154

12,837

Recognised at 31 December 2022

2,200

1,224

(256)

85

(386)

2,867

DBO

13,330

1,941

1,858

570

4,598

22,297

Plan assets

9,063

21

1,858

411

3,872

15,225

Recognised at 31 December 2021

4,267

1,920

0

159

726

7,072

Pension plans of the Company(In € million)

Total

Contributions to defined contribution plans
Employer’s contribution to state and private pension plans, mainly in Germany and France, are to be considered as defined
contribution plans. Contributions in 2022 amounted to €894 million (2021: €859 million).

33.

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 thefollowing notes.
Since 2018, the Company operates also exceptional grants of
Performance and Restricted Units as well as Performance andRestricted Shares under an Equity Pool. Such exceptional
grants are validated by specific resolutions from the Board of
Directors and qualify as cash‑settled or equity‑settled
share‑based payment plans under IFRS 2. Accounting
principles and methodology are the ones applied for LTIP as
described below.
For cash‑settled plans, provisions for associated services
received are measured at fair value by multiplying the numberof units expected to vest with the fair value of one LTIP unit at
the end of each reporting period, taking into account the extent
to which the employees have rendered service to date.

58

Changes of the fair value are recognised as personnel
expenses of the period, leading to a re‑measurement of theprovision. The fair value of Performance Units is re‑measured ateach closing date as far as they are not paid.
For equity‑settled plans, compensation expense is measured at
the grant date at the fair value by multiplying the number ofshares expected to vest by the fair value of one LTIP sharetaking into account the extent to which the employees haverendered service to date. The compensation expense isaccounting for over the vesting period of each LTIP
equity‑settled plans.
The fair value of each LTIP share (equity or cash‑settled plans)is determined using a forward pricing model and is basedon publicly available risk free rate, volatility and dividend rate.
Besides the equity‑settled plans described above, theEmployee Share Ownership Plan (“ESOP”) is an additional
equity‑settled share‑based payment plan. Under this plan, theCompany offers its employees Airbus SE shares at fair value
matched with a number of free shares based on a determining
ratio. The fair value of shares provided is reflected as personnel
expenses in the Company’s Consolidated Income Statementwith a corresponding increase in equity.

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

33.1

LTIP

The Company hedges the share price risk inherent in the
cash‑settled LTIP units by entering into equity swaps where thereference price is based on the Airbus SE share price. To theextent that cash‑settled LTIP units are hedged, compensation
expense recognised for these units will effectively reflect thereference price fixed under the equity swaps. In order to avoid
any dilution of its current shareholders out of equity‑settled LTIP
units, the Company used to perform share buybacks to meetits obligations to its employees, following the decisions of theBoard of Directors and approval of the Annual General Meeting(“AGM”).
In 2022, compensation expenses for LTIPs (incl. Equity Pool)
including the effect of the equity swaps amounted to€49 million (2021: €36 million), among which €21 million for
cash‑settled plans (2021: €23 million) and €28 million forequity‑settled plans (2021: €13 million).
As of 31 December 2022, provisions of €57 million (2021:€55 million) relating to LTIP units (cash‑settled) have beenaccounted for.
The lifetime of the Performance Units as well as Performance
Shares is contractually fixed (see the description of therespective tranche in the following table). For the units, themeasurement is next to other market data, mainly affected by
the share price as of the end of the reporting period (€111.02
as of 31 December 2022) and the lifetime of the units.

The fair value of units and shares granted in the frame of the LTIP 2022 plan is as follows:
Expected vesting date(In € per unit / share granted)

May 2026 - Performance Shares

Fair value of Performance Shares
110.8559

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

The principal characteristics of the LTIPs as at 31 December 2022 are summarised below:
LTIP 2017 (7)Grant date (1)30 October 2017

LTIP 2018 (8)30 October 2018

LTIP 2019 (9)29 October 2019

LTIP 2020

LTIP 2021

LTIP 2022

28 October 2020

15 December
2021

14 December
2022

Performance Units and Performance Shares Plan
Units

Units

SharesUnits

Shares421,638

Units

SharesUnits

SharesSharesSharesNumber of units/
shares granted (2)425,702278,376

281,181247,508

247,508

420,004

420,004

520,870649,373

Fair value at grant
date (3)74.83 /
71.69

76.76

84.09 /
83.28

85.01

112.83 /108.44112.9251.04 /
46.98

55.49

89.83

110.85

Fair Value of
performance units
as of 31 December
2022 (3)0-108.79-108.77 /105.94-108.77 /105.94---

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

1,898

1,898

6,964

6,964

4,343

4,252

1,224

1,224

7,438

1,348

0

0

64,1470

114,075

115,134

401,527

401,527

522,932

650,721

1,602

1,782

1,574

Number of units/
sharesoutstanding (5)Total number of
eligible beneficiaries

1,601

Vesting conditions

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

1,626

1,576

Limited Share priceper unit at vesting
dates to (6)€147.62

Vesting dates

50%
50%
50%
50%
each
each
each
each
expected:
expected:
expected:
expected:in June100%
in June100%
in June100%
in June100%
2021 in expected 2022 in expected 2023 in expected 2024 in expectedJune
in MayJunein MayJunein MayJunein May
2022
2021
2023
2022
2024
2023
2025
2024

Number of vested
units/shares

192,010-

194,975€213.88

66,714-132,120€244.120-0€136.08

0

-

0

-

-

100% expected in
May 2025

100% expected in
May 2026

00(1) Date, when the vesting conditions were determined.
(2) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on‑target performance achievement; up to a
maximum of 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT of the Company) during the performance
period, the Board of Directors can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions(additional vesting condition).
(3) Values are provided for units corresponding per vesting date.
(4) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions.
(5) Including shares granted through the Equity Pool, if applicable.
(6) Corresponds to 200% of the respective reference share price. Overall, the pay‑out for Performance Units is limited to a total amount of 250% of the units originallygranted, each valued with the respective reference share price of €73.81 (for LTIP 2017), €106.94 (for LTIP 2018), €122.06 (for LTIP 2019), €68.04 (for LTIP 2020).
(7) Based on performance achievement of 50% for Performance Units under LTIP 2017.
(8) Based on performance achievement of 50% for Performance Units under LTIP 2018.
(9) Based on performance achievement of 50% for Performance Units under LTIP 2019.

Additionally, the Board of Directors approved in 2022 the exceptional grant of 1,836 Restricted Units and 47,035 Restricted Shares(2021: 1,354 Units and 10,725 Shares) under the Equity Pool with an average fair value of €102.64. 4,826 Units and 2,165 Shares
have vested in 2022 (2021: 2,017 Units and 3,578 Shares). The number of units granted under the Equity Pool and outstanding asof 31 December 2022 is 1,836 Units and 56,857 Shares (2021: 6,086 Units and 13,247 Shares).

60

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

33.2

ESOP

In 2022 and 2021, the Board of Directors approved a new
ESOP scheme. Eligible employees were able to purchase afixed number of previously unissued shares at fair market value(5, 10, 15, 30, 60 or 100 shares in 2022, 5, 15, 30, 50 or
100 shares in 2021). The Company matched each fixed
number of shares with a number of the Company free sharesbased on a determined ratio (5, 9, 12, 20, 35 and 55 freeshares, respectively in 2022, versus 4, 7, 10, 13 and 25 freeshares, respectively in 2021). During a custody period of atleast one year, employees are restricted from selling the shares,
but have the right to receive all dividends paid. Employees who
directly purchased the Airbus SE shares have, in addition, theability to vote at the Annual Shareholder Meetings. The
subscription price was equal to the closing price at the Paris

stock exchange on 16 March 2022 (2021: 17 February 2021)
and amounted to €106.82 (2021: €93.90). 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 16 February 2022 (2021: 17 February2021), resulting in a price of €114.01 (2021: €89.52).
In 2022, the Company issued and sold 1,296,252 ordinary
shares (2021: 1,442,645) with a nominal value of €1.00 each.
In 2022, the Company issued and distributed 824,793
matching ordinary shares (2021: 491,775) with a nominal valueof €1.00 each. Compensation expense (excluding social
security contributions) of €82 million (2021: €49 million) was
recognised in connection with ESOP in 2022.

34.

Remuneration

34.1

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:
2022

2021

Salaries and other short‑term benefits (including bonuses)

19.4

19.5

Post‑employment benefit costs

4.0

5.2

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

4.1

3.4

0

6.1

Other benefits

0.3

0.4

Social charges (2)

6.0

4.6

Short‑term benefits (including social charges)

2.3

2.0

Total expense recognised

36.1

41.2

(In € million)

Executive Committee, including Executive Board Member

Termination benefits (1)Non‑Executive Board Members(1) 2021 termination benefits include the termination benefits related to the year 2021.
(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 2022 for
Executive Committee Members based on estimated performance achievement at year‑end was €10.2 million (2021: €11.4 million).
In order to support the Company’s target of reducing its Scope 1 and 2 carbon emissions by 63% by 2030, the Board of Directors
decided to translate this ambition into a concrete objective and include the CO2 reduction target in the collective variable
remuneration of the CEO and all executives.

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

Post‑Employment and Other Long‑Term Benefits
The post‑employment and other long‑term benefits defined obligation for the Executive Committee, including the CEO, amounted
to €16.7 million at 31 December 2022 (2021: €25.6 million). The disclosed post‑employment and other long‑term benefits reflect
the total outstanding balance for all Executive Committee Members in charge at the end of the respective balance sheet date.

Share‑Based Remuneration (“LTIP Award”)
The share‑based payment expenses result from not yet forfeited units and shares granted to the Executive Committee Members
under the Company’s LTIP which are re‑measured at fair value according to the methodology described in Note 33.
In 2022, the Members of the Executive Committee were granted 70,562 Performance Shares (2021: 66,575). For LTIP 2022, therespective fair value of these Shares at grant date was €8.8 million (2021: €6.5 million for both Performance Shares andPerformance Units). As of 31 December 2022, provisions of €5.4 million (2021: €5.4 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 81,183 and 206,211 respectively at 31 December 2022 (2021: 91,180 Performance Units and 152,967
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 extension of
the non‑compete clause when legally or contractually possible. The compensation for each year that the non‑compete clauseapplies is equal to 50% of the last Total Annual Remuneration (defined as Base Salary and Annual Variable Remuneration mostrecently paid) with respect to applicable local legal requirements, if any.
Past LTIP awards may be maintained in full or prorated, in such cases as in case of retirement or if a mandate is not renewed by
the Company without cause, pro rata being based on the presence in the Company during performance periods. The vesting ofpast LTIP awards follows the plans’ rules and regulations and is not accelerated in any case. LTIP awards are forfeited for
Executives who leave the Company on their own initiative, but this is subject to review by the Board of Directors.
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.

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

34.2

Remuneration – CEO

The annual remuneration and related compensation costs of the CEO as expensed in the respective year can be summarised asfollows:
2022

2021

Base salary

1,485,000

1,350,000

Annual variable pay

2,008,800

2,247,750

Post‑employment benefit costs

1,385,222

1,138,794

Share‑based remuneration (“LTIP award”) (1)1,082,668

822,906

0

0

Other benefits

32,73432,479Social charges (2)1,357,922

1,089,385(In €)

Termination benefits(1) Expense related to share‑based payment plans as recognised in the annual period (service period) including the result from the hedge of cash‑settled share‑based
payment (see “– Note 33: 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 planssuch as pension, death and disability or medical coverage.

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

Post‑Employment Benefit Costs
Post‑employment benefit costs relate to the aggregated amount of current service and interest costs for defined benefit plan andcompany cost for contributions base plans.
Following the Board decision approved in the AGM 2020, the CEO pension rights are accrued through a defined contributions planfrom 1 January 2020, which coexists with the former defined benefit pension plan.
The accrued pension rights under the former defined benefit plan have been frozen at the end of 2019 and remain unvested until
the retirement date of the CEO. The pension rights arising from the Company’s defined contribution plan are deducted from thefrozen defined pension rights.
As of 31 December 2022, the defined benefit obligation related to the frozen defined benefit commitment amounts to €6,895,263(2021: €9,048,433). This obligation has been accrued in the 2022 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 2022, the cost related to the CEO’s pension rights accrued under Company’s plans during the year represented
an expense of €1,385,222 (2021: €1,138,794).
The annual cost of pension rights accrued under applicable mandatory collective and state pension plans are accounted for amongsocial charges.

63

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

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

LTIP 2020

LTIP 2021

LTIP 2022

Performance Units and Shares

8,808

8,416

11,06019,84012,121

14,115

Revaluation

50%

50%

50%

100%

100%

100%

Performance Units and Shares revalued

4,404

4,208

5,531

19,84012,121

14,115

1,101

1,052

0

0

0

0

0

2,104

0

0

0

0

in cash

0

1,052

2,766

9,920

0

0

in shares

0

0

2,765

9,920

12,121

14,115

May 2025

May 2026

Granted Date

Vested in 2022
in cashin shares
Outstanding 2022

Vesting scheduleCash‑settled units
Equity‑settled units

For vesting dates, see “– Note 33.1: LTIP”
May 2021

May 2022

May 2023

May 2024(1) 2017 and 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 2022, provisions of €1,301,397 (2021: €1,188,050) relating to Performance Units have been recognised. The
pay‑out from vested cash‑settled LTIP in 2022 was €226,388 (2021: €324,504) excluding social charges.

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

Other Benefits
As stipulated in the Company’s Remuneration Policy, the benefits offered to the CEO are similar to the benefits granted to otherexecutives of the Company and comprise, among other matters, medical, death and disability coverage (both through the Frenchsocial security system and mandatory collective Company’s plans), a company car and usual facilities. Costs of benefits provided
through applicable mandatory collective and social security plans are accounted for among social charges. The monetary value ofother benefits provided to the CEO in 2022 amounted to €32,734 (2021: €32,479).
The Company has not provided any loans to, advances to and guarantees on behalf of the CEO.

64

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

34.3

Remuneration – Board of Directors

The remuneration of the Non‑Executive Members of the Board of Directors was as follows:
2022

2021

Fixum (1)AttendanceFees (2)

Total

Fixum (1)AttendanceFees (2)

Total

René Obermann

225,000

135,000

360,000

210,000

90,000300,000

Victor Chu

100,000

66,000166,000

100,000

43,000143,000

Jean‑Pierre Clamadieu

140,000

96,500236,500

130,000

67,500

197,500

Ralph D. Crosby, Jr.

100,000

100,000

200,000

100,000

61,000161,000

Mark Dunkerley (3)124,420

112,000

236,420

100,000

66,000166,000

Stephan Gemkow

110,000

98,000208,000

100,000

63,000163,000

Catherine Guillouard

140,000

98,000238,000

130,000

67,500

197,500

Amparo Moraleda

140,000

103,000

243,000

130,000

54,500184,500

Claudia Nemat

100,000

76,500176,500

100,000

56,500156,500

Irene Rummelhoff (4)72,10075,000147,100---

Antony Wood (5)3,913

10,00013,913---Lord Drayson (6)33,811

15,00048,811

120,000

49,500169,500

Carlos Tavares (7)22,541

5,000

27,54180,00045,000125,000

1,311,785

990,000

2,301,785

1,300,000

663,500

1,963,500(In €)

Non‑Executive Board Members

Former Non‑Executive Board Members

Total(1) Fixum includes a base fee for Board membership and the relevant Committee membership as the case may be (Audit Committee, Remuneration, Nomination and
Governance Committee (“RNGC”), Ethics, Compliance and Sustainability Committee (“ECSC”) and/or ad hoc Committee). The fixum for the year 2022 was paid 50%
in January 2022 and 50% in July 2022 except in relation to the ad hoc Committee for which the full amount was paid in January 2023. The fixum for the year 2021
was paid 50% in January 2021 and 50% in July 2021.
(2) 2022 attendance fees include the Board attendance fees and the fees in relation to the relevant Committee (Audit Committee, RNGC and ECSC) meetings. The Board
attendance fees related to the first se mester 2022 were paid in July 2022, those related to the second semester 2022 were paid in January 2023. The Committees’
attendance fees related to full year 2022 were paid in January 2023.
(3) Member of the RNGC since 12 April 2022.
(4) Member of the Board of Directors and the ECSC since 12 April 2022.
(5) Member of the Board of Directors since 14 December 2022
(6) Member of the Board of Directors, the RNGC and the ECSC until 12 April 2022.
(7) Member of the Board of Directors until 12 April 2022.

65

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

2.7 Capital Structure and Financial Instruments
35.

Total Equity

35.1

Equity Attributable to Equity Owners of the Parent

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

Issued at 1 January
Issued for ESOP
Issued 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 €12,950 million (2021:€9,466 million) representing an increase of €+3,484 million.
This is mainly due to the net income for the period of €+4,247 million and a change in actuarial gains and losses of €+3,432 million, partly offset by the mark to market revaluationof the hedge portfolio of €-2,240 million, the change in fairvalue of financial assets of €-1,091 million and a dividend
payment of €-1,181 million (€1.50 per share).
Capital stock comprises the nominal amount of shares
outstanding. The addition to capital stock represents thecontribution for exercised options by employees of €2,121,318(2021: €1,934,420) in compliance with the implemented
ESOPs.
Share premium mainly results from contributions in kind in thecourse of the creation of the Company, cash contributions fromthe Company’s initial public offering, capital increases andreductions due to the issuance and cancellation of shares.
Retained earnings include mainly the profit for the period andthe changes in other comprehensive income fromremeasurements of the defined benefit pension plans net of tax
which amounts to €+3,432 million in 2022 (2021:€ +2,363 million).
On 12 April 2022, the Annual General Meeting (“AGM”) decided
to distribute a gross amount of €1.50 per share, which was

66

2022

2021

786,083,690

784,149,270

2,121,318

1,934,420

788,205,008

786,083,690(647,500)(454,735)

787,557,508

785,628,955

paid on 21 April 2022. For the fiscal year 2022, the Company’s
Board of Directors proposes a cash distribution payment of€1.80 per share.
Treasury shares represent the amount paid or payable for own
shares held in treasury. During 2022, the number of treasury
stock held by the Company increased to 647,500 compared to454,735 as of 31 December 2021, mainly due to the sharebuybacks partly offset by vested shares in 2022 under LTIP
2018 (see “– Note 33: Share‑based Payment”). No shares weresold back to the market nor cancelled (2021: 0 shares).
On 12 April 2022, the AGM of the Company authorised theBoard of Directors, for a period expiring at the AGM to be heldin 2023, to issue shares and to grant rights to subscribe forshares 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 33: Share‑based
Payment”);– funding the Company and its subsidiaries, provided thatsuch powers shall be limited to an aggregate of 0.3% of theCompany’s authorised share capital (see “– Note 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.

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

On 14 April 2021, the AGM authorised the Board of Directors foran 18‑month period to repurchase up to 10% of the Company’s
issued share capital at a price per share not less than the nominal
value and not more than the higher of the price of the last
independent trade and the highest current independent bid on the

35.2

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

Non‑Controlling Interests

The non‑controlling interests (“NCI”) from non‑wholly owned subsidiaries increased to €32 million as of 31 December 2022
(2021: €20 million). These NCI do not have a material interest in the Company’s activities and cash flows.

36.

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 financial indicators such as cash flow, profitability, leverage ratios
and liquidity ratios. The Company monitors these ratios to keep them in a range compatible with a strong rating.
Rating agency

Long‑term rating

Outlook Short‑term ratingStandard and Poor’s

A

StableA‑1

Moody’s Investors Services

A2

StableP1

BBB+

StableF1

Fitch Rating (unsolicited)

The stand‑alone rating reflects the Company’s strong backlog
providing revenue visibility, dominant market position in the
single‑aisle market, operating performance and overall its
strong positioning to benefit from the recovery in air travel
demand. It also reflects Airbus’ exceptional liquidity, solidbalance sheet as well as its prudent financial policy. Finally, it
reflects the management’s focus on programmes execution,
profitability and cash generation improvement.

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

In accordance with the Company’s conservative financial policy,
a strong rating is key to maintain a wide array of funding
sources at competitive conditions, to have broad access tolong‑term hedging and to strengthen the Company’s position
as a financially sound counterparty for its customers andsuppliers.

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

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

The Company uses the WACC to determine the Net Present
Value (“NPV”), which is used for any investment decision.
The Company also monitors the level of dividends paid to its
shareholders.

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

67

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

37.

Net Cash

The net cash position provides financial flexibility to fund the Company’s operations, to react to business needs and risk profile andto return capital to the shareholders.
31 December
2022

2021

Cash and cash equivalents

15,823

14,572Current securities

1,762

1,317

Non‑current securities

6,013

6,794

Gross cash position

23,59822,683

Short‑term financing liabilities(2,142)(1,946)

Long‑term financing liabilities(10,631)(13,094)

Interest rate contracts (1)(1,394)

97

Total

9,431

7,740

(In € million)(1) The Company has decided to refine the net cash definition to include interest rate contracts related to fair value hedges, which is also reflected in the 2022 balance.

The net cash position on 31 December 2022 amounted to€9,431 million (2021: €7,740 million), with a gross cash
position of €23,598 million (2021: €22,683 million).
Derivative instruments recognised on the Company’s
Statement of Financial Position consist of (i) instruments thatare entered into as hedges of the Company’s operating
activities or interest result, and (ii) embedded foreign currency
derivatives that arise from separating the foreign currency

37.1

component from certain operating contracts. Cash flows
resulting from the settlement of these derivatives are therefore
recorded as part of cash flow from operations. Similarly,
financial assets and liabilities arising from customer financing
activities and refundable advances from European
Governments are considered part of operating activities andrelated cash flows are hence recognised as cash flows fromoperating activities.

Cash and Cash Equivalents

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

2022

2021

Bank account and petty cash

3,687

1,964

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

11,135

12,075

Short‑term securities (at fair value through OCI)

1,001

533

15,823

14,572

Total cash and cash equivalents

Only securities with a maturity of three months or less from thedate of the acquisition, that are readily convertible to known
amounts of cash and which are subject to an insignificant riskof changes in value, are recognised in cash equivalents.
Cash and cash equivalents have increased by €+1.3 billion
from €14.6 billion at 31 December 2021 to €15.8 billion at
31 December 2022. They include payments received inadvance from certain customers and payments made to
suppliers in anticipation.

68

The main variations are as follows:
Cash provided by operating activities amounts to €+6.3 billion
in 2022, mainly driven by a profit translated into cash, a positive
phasing impact from contracts assets and liabilities reflecting
higher advance payments and a positive impact from net
payments made to suppliers in anticipation. It also reflects anincrease in trade liabilities driven by higher volume and payment
terms increase linked to certain agreements reached with
suppliers. It is partly offset by the increase in inventory.

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

Cash used for investing activities amounts to €-3.1 billion,
mainly reflecting capital expenditures.
Cash used for financing activities amounts to €-2.1 billion. It
mainly includes the cash distribution to Airbus SE shareholdersof €-1.2 billion and the bond buyback of €-1.0 billion.
Similar to previous years, the Company has supported its
suppliers concerning supply chain financing arrangements. Asof 31 December 2022, these arrangements have no impact on

37.2

Securities

The majority of the Company’s securities consists of debt
securities and are classified at fair value through OCI (see “–Note 38.2: Carrying Amounts and Fair Values of Financial
Instruments”).
The Company’s securities portfolio amounts to €7,775 millionand €8,111 million as of 31 December 2022 and 2021,
respectively. The security portfolio contains a non‑current
portion of €6,013 million (2021: €6,794 million), and a current
portion of €1,762 million (2021: €1,317 million).
Included in the securities portfolio as of 31 December 2022

37.3

the Company’s Consolidated Financial Statements. The
Company evaluates such suppliers’ early payment
arrangements against a number of indicators to assess
whether the payable continues to hold the characteristics of a
trade payable or should be classified as borrowings; these
indicators include whether the payment terms exceed
customary payment terms in the industry. As at 31 December
2022, the payables subject to supplier financing arrangements
do not meet the criteria to be reclassified as borrowings.

and 2021, respectively, are corporate and government bonds
bearing either fixed rate coupons (€8,368 million nominal value;
2021: €7,866 million) or floating rate coupons (€32 million
nominal value; 2021: €103 million), and foreign currency fundsof fixed income funds (€0 million fair value; 2021: €2 million).
When the Company enters into securities lending or otherfinancing activities that involve the pledging of securities as
collateral, the securities pledged continue to be recognised on
the balance sheet. As of 31 December 2022 and 2021, they
were no securities pledged as collateral for borrowings frombanks.

Financing Liabilities

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

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.

69

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

31 December(In € million)

2022

2021

Bonds and commercial papers

8,681

11,061

Liabilities to financial institutions

383

467

Loans

75

75

Lease liabilities

1,492

1,491

Total long term financing liabilities

10,631

13,094

Bonds and commercial papers

00Liabilities to financial institutions

27

26

Loans

83

96

Lease liabilities

242

245

Others (1)

1,790

1,579

Total short term financing liabilities

2,142

1,946

12,773

15,040Total(1) Included in “others” are financing liabilities to joint ventures.

Long‑term financing liabilities, mainly comprising of bonds
and lease liabilities, decreased by €-2,463 million to€10,631 million (2021: €13,094 million), mainly due to thedecrease in the value of bonds linked to higher interest rates
and a €1 billion bond buyback performed in June 2022.
Short‑term financing liabilities increased by €+196 million to€2,142 million (2021: €1,946 million).
The Company has several euro‑denominated bonds issued
under its EMTN programme and two stand‑alone US
dollar‑denominated bonds issued on the US institutional

70

market under Rule 144A, outstanding as of 31 December
2022.
The Company can issue commercial papers under its€11 billion Negotiable European Commercial Paper (“NEuCP”)
programme, its €4 billion Euro Commercial Paper (“ECP”)
programme and its $3 billion US Commercial Paper
programme.
As of 31 December 2022, there were no outstanding amounts
under any of its commercial paper programmes.

2. Notes to the IFRS Consolidated Financial Statements
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)

2022

2021

Issuancedate

Coupon orinterest rate

Effective
interest rate Maturity date

Additional features

EMTN 15 years

€500

444

525

October 2014

2.12%

2.21%

October 2029

Interest rate swapped
into 3M Euribor +0.84%

EMTN 10 years

€823

799

1,043

April 2014

2.38%

2.42%

April 2024

Interest rate swapped
into 3M Euribor +1.40%

EMTN 10 years

€461

419

645

May 2016

0.88%

0.98%

May 2026

Interest rate swapped
into 3M Euribor +0.50%

EMTN 15 years

€900

737

903

May 2016

1.38%

1.50%

May 2031

Interest rate swapped
into 3M Euribor +0.66%

EMTN 5 years

€561

515

732

March 2020

1.63%

1.80%

April 2025

Interest rate swapped
into 3M Euribor +2.01%

EMTN 8 years

€611

512

725

March 2020

2.00%

2.10%

April 2028

Interest rate swapped
into 3M Euribor +2.15%

EMTN 12 years€1,000754

957

March 2020

2.38%

2.49%

April 2032

Interest rate swapped
into 3M Euribor +2.24%

EMTN 20 years€1,000646

958

June 2020

2.38%

2.44%

June 2040

Interest rate swapped
into 3M Euribor +1.93%

EMTN 6 years

€894

792

1,215

June 2020

1.38%

1.47%

June 2026

Interest rate swapped
into 3M Euribor +1.66%

EMTN 10 years€1,250989

1,200

June 2020

1.63%

1.74%

June 2030

Interest rate swapped
into 3M Euribor +1.61%

US$ Bond 10 years

US$750653

694

April 2017

3.15%

3.20%

April 2027

Interest rate swapped
into 3M Libor +0.87%

US$ Bond 30 years

US$750643

731

April 2017

3.95%

4.02%

April 2047

Interest rate swapped
into 3M Libor +1.61%

ACLP Private
placement

US$830778

733

July 2020,
Dec 2020

1.98% -2.54%

2.77% -3.09%

July 2026
to July 2029

Bonds

8,681

11,061Others410

493

Liabilities tofinancial
institutions

410

493

71

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

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

Cash flows

Changes inscope

Foreignexchange
movements

OthersBalance at
31 December 2022

11,061

(989)

0

126

(1,517)

8,681

Liabilities to financial
institutions

493

(83)

0

0

0

410

Loans

171

(63)

49

1

0

158

Finance lease liabilities

1,736

(262)

0

32

228

1,734

Others

1,579

220

0

(9)

0

1,790

Total

15,040(1,177)49

150(1,289)12,773

Balance at
1 January 2022

Bonds and commercial
papers(In € million)

Reconciliation of liabilities arising from financing liabilities as of 31 December 2021 is as follows:
Non‑cash movements

Cash flows

Changes inscope

Foreignexchange
movements

OthersBalance at
31 December 2021

13,107(1,903)

0

168

(311)

11,061

Liabilities to financial
institutions

529

(48)

0

12

0

493

Loans

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

Balance at
1 January 2021

Bonds and commercial
papers(In € million)

38.

Financial Instruments

38.1

Financial Risk Management

By the nature of its activities, the Company is exposed to avariety of financial risks: (i) market risks, in particular foreignexchange risk, but also interest rate risk, equity price risk andcommodity price risk, (ii) liquidity risk and (iii) credit risk. The
Company’s overall financial risk management activities focus on
mitigating unpredictable financial market risks and theirpotential adverse effects on the Company’s operational andfinancial performance.
The financial risk management of the Company is generally
carried out by the Treasury department of the Company 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
established specific committees such as the Foreign Exchange
Committee and the Asset Liability Management Committee,
including the Company business segments.
The Company uses financial derivatives solely for risk mitigating
purposes (“hedging”) and applies hedge accounting for asignificant portion of its hedging portfolio.

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

72

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

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

The Company manages a long‑term hedge portfolio withmaturities of several years covering its net exposure to US
dollar sales, mainly from the commercial activities of Airbus.
This hedge portfolio covers a large portion of the Company’s
firm commitments and highly probable forecasted transactions.
For Airbus, the highly probable criteria of the underlying foreign
currency exposure of cash flow hedges is assessed based on
the IFRS15 backlog value analysis. This consists in reducing
the contractual firm backlog by all deliveries which cannot be
considered as highly probable due to the existence of either
cancellation rights, risk of bankruptcy or other risk of order
restructuring. The latter assessments is taking into accountcustomers’ situation and commercial aspects. The resulting
backlog is further adjusted to the foreign exchange
management hedging horizon. The highly probable underlying
foreign currency exposure is then capped to the production
plan when applicable.
Most of the Company’s revenue is denominated in US dollars,
while a major portion of its costs is incurred in euro and to alesser extent in other foreign currencies. Consequently, to theextent that the Company does not use financial instruments tohedge its exposure resulting from this currency mismatch, its
profits will be affected by changes in the €/US$ exchange rate.
As the Company intends to generate profits primarily from its
operations rather than through speculation on exchange rate
movements, it uses hedging strategies to manage andminimise the impact of exchange rate fluctuations on these
profits.
With respect to its commercial aircraft products, as of 30 June
2018, the Company adopted a new hedge strategy to hedge
its net exposure (US dollar revenue less US dollar cost)
resulting from commercial aircraft deliveries of specific aircraft
types. The strategy more closely aligns hedge accounting withrisk management activities.
Under the new strategy the foreign exchange derivatives usedas hedging instruments are designated as a hedge of a portionof the cash flows received for each of a number of deliveries ofa specific aircraft type that are expected to occur in a given
month and hence will allow the hedge result to move along withthe hedged deliveries in the event of a shift in deliveries.
If such a shift in hedged deliveries occurs, hedge
ineffectiveness will arise to the extent the maturities of thehedging instrument and the expected timing of the hedged
cash flows are no longer perfectly aligned. In order to minimise
such ineffectiveness the Company will close the timing gap byrolling over hedges to new maturities, using foreign exchange
swap contracts.
In addition, the Company will designate the risk of changes inthe spot element as the hedged risk in order to eliminate theineffectiveness resulting from changes in forward points
between different maturities. The forward element will be
accounted for as a cost of hedging similar to the time value of
options.
Until 30 June 2018, the Company typically hedged firmly
committed sales in US dollar using a “first flow approach”.
Under that approach, the foreign currency derivatives theCompany entered into were designated as a hedge of the first
US dollar inflows received from the customer at aircraft delivery
in a given month. The strategy implied that only a portion of the
expected monthly customer payments made at aircraft delivery
were hedged and that a reduction of monthly cash inflows as aresult of postponements or order cancellations had no impact
on the effectiveness of the hedge as long as the actual gross
US dollar cash inflows received at aircraft delivery in a particularmonth exceeded the portion designated as being hedged inthat month. According to the prospective application
requirement of IFRS 9, the fair values of the legacy portfolio inplace at inception of the new strategy continue to be assigned
to the previous first flow hedge regime and remain in the hedge
reserve in OCI, to be recognised in profit or loss only at maturityof the originally hedged cash flows (unless those cash flows are
no longer expected to occur).
As a result of prospective application, the hedging instruments
designated under the new strategy had a non‑zero fair value athedge inception, which might create some small
ineffectiveness.
Another source of ineffectiveness is the counterparty credit risk
inherent in the hedge portfolio. As such, credit risk is absent
from the hedged cash flows. However, since netting
arrangements are in place with all the hedge counterparties
and the Company has a policy of trading with investment grade
counterparties only, the credit risk arising from its hedging
instruments, and associated changes in credit risk, havehistorically been negligible and are expected to remain so.
The Company also hedges its expected foreign currency
exposure arising from US dollar or pound sterling cash outflows
in the commercial aircraft business on a first outflow basis,though to a much lesser extent than US dollar cash inflows.
In military aircraft and non‑aircraft businesses, the Company
hedges inflows and outflows in foreign currencies from firmly
committed or highly probable forecast sales and purchase
contracts. Here, foreign currency derivatives are typicallycontracted in lower volumes; they may be accounted for using
a first flow approach or are designated as hedges of specificagreed milestone payments. The amount of the expected flows
to be hedged can cover up to 100% of the equivalent of the
net US dollar exposure at inception. The coverage ratio
considers the variability in the range of potential outcomestaking into account macroeconomic movements affecting spot
rates and interest rates as well as the robustness of thecommercial cycle.
In situations where the payment dates for hedged firmly
committed cash flows are not fixed and subject to potentiallysignificant delays, the Company may use rollover strategies,
usually involving foreign exchange swaps.
For all foreign currency hedges of future cash flows which
qualify for hedge accounting under IFRS 9, the Company uses
the cash flow hedge model, which requires (i) recognising theeffective portion of the fair value changes of the hedging
derivatives in equity (within OCI) and (ii) recognising the effect of
the hedge in profit or loss when the hedged cash flows affectprofit or loss.

73

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

In addition, the Company hedges currency risk arising fromfinancial assets or liabilities denominated in currencies otherthan the euro, including foreign currency receivable andpayable accounts, as well as foreign currency denominatedfunding transactions or securities. The Company applies hedge
accounting if a mismatch in terms of profit or loss recognition of
the hedging instrument and hedged item would otherwise
occur. Frequently, however, the currency‑induced gains orlosses of the hedging instrument and the hedged item match interms of profit or loss recognition (“natural hedge”), so nohedge accounting is required. Sometimes such gains or losses
may end up in different sections of the income statement (suchas operating profit for the hedged item and financial result for
the hedging instrument). If so, the Company may choose topresent the gains or losses of both the hedging instrument andthe hedged item in the same income statement line item if
certain formal requirements are met.
As hedging instruments, the Company primarily uses foreign
currency forwards, foreign currency options and to a minor
extent non‑derivative financial instruments. A hedge ratio of 1:1
is applied by the Company.
The Company also has foreign currency derivative instruments
which are embedded in certain purchase contracts
denominated in a currency other than the functional currency of
any substantial party to the contract, principally in US dollar
and pound sterling. If such embedded derivatives are required
to be accounted for separately from the host purchase
contract, related gains or losses are generally recognised inother financial result. However, if the embedded derivatives
qualify for hedge accounting, the Company might choose to
designate them as a hedging instrument in a hedge of foreign
currency risk, in which case they are accounted for under the
cash flow hedge model as described above.
Interest rate risk — The Company uses an asset‑liability
management approach with the objective to limit its interest
rate risk. It undertakes to match the risk profile of its
interest‑bearing assets with those of its interest‑bearing
liabilities. The remaining net interest rate exposure is managed
through several types of interest rate derivatives, such as
interest rate swaps and interest rate futures contracts, in orderto minimise risks and financial impacts.
The vast majority of related interest rate hedges qualify forhedge accounting, and most of them are accounted for under
the fair value hedge model. As a result, both the fair valuechanges of these derivatives and the portion of the hedged
items’ fair value change that is attributable to the hedged
interest rate risk are recognised in profit or loss, where they
offset to the extent the hedge is effective.
The Company has applied the relief introduced by theamendments made to IFRS 9 in September 2019 on hedge
accounting, having the effect that the IBOR reform should notcause hedge accounting to terminate.
The Company invests in financial instruments such as overnight
deposits, certificates of deposits, commercial papers, othermoney market instruments and short‑term as well as
medium‑term bonds. For its financial instruments portfolio, theCompany has an Asset Liability Management Committee inplace that meets regularly and aims to limit the interest rate risk

74

on a fair value basis through a value‑at‑risk approach, fromwhich results a hedge ratio that is however not actively steered.
Commodity price risk — The Company is exposed to risk
relating to fluctuations in the prices of commodities used in the
supply chain. It manages these risks in the procurement
process and to a certain extent uses derivative instruments inorder to mitigate the risks associated with the purchase of raw
materials. To the extent that the gains or losses of the derivative
and those of the hedged item or transaction do not match interms of profit or loss, the Company applies cash flow hedge
accounting to the derivative instruments, with a hedge ratio of
1:1.
Equity price risk — The Company is to a small extent invested
in equity securities mainly for operational reasons. Its exposure
to equity price risk is hence limited. Furthermore, it is exposed
under its LTIP to the risk of the Company share price increases.
The Company limits these risks through the use of equity
derivatives that qualify for hedge accounting and have been
designated as hedging instruments in cash flow hedges, with ahedge ratio of 1:1.
Sensitivities of market risks — The approach used tomeasure and control market risk exposure of the Company’s
financial instrument portfolio is, amongst other key indicators,
the value‑at‑risk model (“VaR”). The VaR of a portfolio is theestimated potential loss that will not be exceeded over a
specified period of time (holding period) from an adverse
market movement with a specified confidence level. The VaR
used by the Company is based upon a 95% confidence level
and assumes a five‑day holding period. The VaR model used ismainly based on the so‑called “Monte‑Carlo‑Simulation”
method. The model generates a wide range of potential futurescenarios for market price movements by deriving the relevant
statistical behaviour of markets for the portfolio of market datafrom the previous two years and observed interdependencies
between different markets and prices.
The Company’s VaR computation includes the Company’s
financial debt, short‑term and long‑term investments, foreign
currency forwards, swaps and options, commodity contracts,finance lease receivables and liabilities, foreign currency tradeliabilities and receivables and contract assets.
Although VaR is an important tool for measuring market risk,
the assumptions on which the model is based give rise tosome limitations, including the following:– a five‑day holding period assumes that it is possible to hedge
or dispose of positions within that period. This is considered
to be a realistic assumption in almost all cases but may not
be the case in situations in which there is severe market
illiquidity for a prolonged period;– a 95% confidence level does not reflect losses that may
occur beyond this level. Even within the model used there is
a 5% statistical probability that losses could exceed thecalculated VaR;
– the use of historical data as a basis for estimating thestatistical behaviour of the relevant markets and finallydetermining the possible range of future outcomes out of thisstatistical behaviour may not always cover all possible
scenarios, especially those of an exceptional nature.

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

The Company uses VaR amongst other key figures in order todetermine the riskiness of its financial instrument portfolio andin order to optimise the risk‑return ratio of its financial asset
portfolio. Further, its investment policy defines a VaR limit for
the total portfolio of cash, cash equivalents and securities. The

total VaR as well as the different risk‑factor specific VaR figuresof this portfolio are measured and serve amongst othermeasures as a basis for the decisions of the Company’s Asset
Liability Management Committee.

A summary of the VaR position of the Company financial instruments portfolio at 31 December 2022 and 2021 is as follows:

Total VaR

Equityprice VaR

Currency
VaR

Commodity
price VaR

Interest
rate VaR

Foreign exchange hedges for forecast transactions orfirm commitments

1,450

0

1,535

0

238

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

268

67

225

0

80

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

130

0

83

0

112

Commodity contracts

2

0

0

2

0

Equity swaps

2

2

0

0

0

Diversification effect

(584)

(1)

(472)

0

(139)

All financial instruments

1,268

68

1,371

2

291

Foreign exchange hedges for forecast transactions orfirm 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

Equity swaps

5

0

0

0

0

Diversification effect

(162)

2

(125)

0

(169)

All financial instruments

935

60

927

3

153

(In € million)

31 December 2022

31 December 2021

As of 31 December 2022, the total VaR amounts to €1,268 million (2021: €935 million). The increase is mainly attributable to thecurrency and interest rate volatilities.
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 theunderlying forecast transactions, assets or liabilities. Under IFRS 7, the underlying forecast transactions do not qualify as financial
instruments and are therefore not included in the tables shown above. Accordingly, the VaR of the foreign exchange hedging
portfolio in the amount of €1,535 million (2021: €945 million) cannot be considered as a risk indicator for the Company in theeconomic sense.

75

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

Liquidity Risk
The Company’s policy is to maintain sufficient cash and cash
equivalents at any time to meet its present and futurecommitments as they fall due. It manages its liquidity byholding adequate volumes of liquid assets and maintains acommitted revolving credit facility, in addition to the cash inflow
generated by its operating business. The Company continues
to keep the focus on low counterparty risk within its asset
portfolio. In addition, it maintains a set of other funding sources,
and accordingly may raise loans from commercial banks andDevelopment Finance Institutions and issue bonds, notes andcommercial papers or enter into security lending agreements.
Adverse changes in the capital markets could increase its
funding costs and limit its financial flexibility.
In particular, Airbus signed on 5 July 2022 a €8 billion Sustainability

Linked Revolving Syndicated Credit Facility in order to refinance its€6 billion existing facility signed in 2020.
Management considers the Company has sufficient resources tocontinue operating for at least 12 months and that there are nomaterial uncertainties about the Company’s ability to continue as agoing concern.
Further, the management of the vast majority of the Company’s
liquidity exposure is centralised by a daily cash concentration
process. This process enables it to manage its liquidity surplus aswell 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:
Carrying
amountContractual
cash flows< 1 year

1 year 2 years

2 years 3 years

3 years 4 years

4 years 5 years> 5 years

Non‑derivative financial
liabilities(26,753)(29,230)(15,885)(1,791)(936)(1,760)(1,192)(7,666)

Derivative financial liabilities(9,613)(10,861)(3,538)(2,647)(1,610)(1,118)(537)(1,411)(36,366)(40,091)(19,423)(4,438)(2,546)(2,878)(1,729)(9,077)

Non‑derivative financial
liabilities(25,387)(27,962)(12,072)(1,000)(1,539)(1,095)(2,381)(9,875)Derivative financial liabilities(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)(In € million)

31 December 2022

Total
31 December 2021

Total

Non‑derivative financial liabilities included in the table above comprise financing liabilities as presented in “– Note 38.2: 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 €-3,857 million at 31 December
2022 (€-3,861 million at 31 December 2021) are not included.

76

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

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

2022

2021

Not later than one year

(241)

(245)

Later than one year and not later than five years

(747)

(758)

Later than five years(1,036)(1,043)

Total undiscounted lease liabilities(2,024)(2,046)

Lease liabilities included in the statement of financial position(1,734)(1,736)

(242)

(245)

(1,492)(1,491)

Current
Non‑current

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

38.2

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 be assessed by reference to external credit rating (ifavailable)orinternal
assessmentofcustomers’
creditworthiness e.g. airlines by way of internal risk pricing
methods. For further information relating to gross credit risk
and impairment see “– Note 38.7: Impairment Losses”.

Carrying Amounts and Fair Values of Financial Instruments

Financial instruments — The Company’s financial assets mainly
consist of cash, short to medium‑term deposits and securities. Its
financial liabilities include trade liabilities, obligations towards
financial institutions, issued bonds and refundable advances from
European Governments. All purchases and sales of financial assets
are recognised on the settlement date according to market
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) arerecognised in OCI. Amounts presented in OCI are notsubsequently transferred to profit or loss on derecognition of theequity 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 bothfor sales and collecting contractual cash flows. Changes intheir fair value other than impairment losses and foreignexchange gains and losses on monetary items arerecognised directly within AOCI. Upon disposal of suchfinancial assets, the cumulative gain or loss previously
recognised in equity is recorded as part of other income(other expenses) from investments in the Consolidated
Income Statement for the period. Interest earned on theinvestment are presented as interest income in theConsolidated Income Statement using the effective interest
method. Dividends earned on investment were recognised
as other income (other expenses) from investments in theConsolidated Income Statement when the right to thepayment had been established.

77

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

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

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

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

Financial instruments total

Fair value
through OCI

Amortised cost

Fair value

Book value

Fair value

1,474

1,166

0

0

2,640

2,640

Fair value
through profit
or loss

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

AssetsOther investments and otherlong‑term financial assets

86

0

0

0

86

86

(2)

0

0

2,129

2,129

2,129

2,129

Trade receivables

0

0

4,953

4,953

4,953

4,953

Contract assets

0

0

1,527

1,527

1,527

1,527

1,894

0

0

0

1,894

1,894

0

0

1,429

1,429

1,429

1,429

0

7,775

0

0

7,775

7,775

Cash and cash equivalents

11,135

1,001

3,687

3,687

15,823

15,823

Total

14,589

9,942

13,725

13,72538,25638,256

Bonds and commercial papers

00(8,681)(9,071)(8,681)(9,071)

Liabilities to financial
institutions and others

00(2,358)(2,358)(2,358)(2,358)00(1,734)(1,734)(1,734)(1,734)(9,613)000(9,613)(9,613)

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

Others

0

(83)

(636)

(636)

(719)

(719)

Trade liabilities

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

Other loans

Other financial assets
Derivative instruments
Non‑derivative instruments
Securities

Liabilities
Financing liabilities

Finance lease liabilities(2)

Other financial liabilities
Derivative instruments

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

78

2. Notes to the IFRS Consolidated Financial Statements
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

Financial instruments total

Fair value
through OCI

Amortised cost

Fair value

Book value

Fair value

1,033

1,478

0

0

2,511

2,511

118

0

0

0

118

118

0

0

1,909

1,909

1,909

1,909

Trade receivables (3)

0

0

4,957

4,957

4,957

4,957

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

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

11,371

11,37135,72435,724

Bonds and commercial papers

00(11,061)(11,886)(11,061)(11,886)

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)

European Governments’refundable advances (4)00(3,861)(3,861)(3,861)(3,861)Others

0

(16)

(654)

(654)

(670)

(670)

Trade liabilities

00(9,693)(9,693)(9,693)(9,693)(4,563)(16)(29,248)(30,073)(33,827)(34,652)

Fair value
through profit
or loss

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

AssetsOther investments and otherlong‑term financial assets

Other loans(2)

Other financial assets
Derivative instruments
Non‑derivative instruments
Securities

Liabilities
Financing liabilities

Other financial liabilities
Derivative instruments

Total(1) Other than those accounted for under the equity method.
(2) The carrying amounts are used as reasonable fair value approximations.
(3) 2021 figures restated in accordance with 2022 presentation(4) The European Governments’ refundable advances of €-3,861 million are measured at amortised cost. Fair values cannot be reliably measured because their risk
sharing nature and the uncertainty of the repayment dates give rise to a broad range of reasonable fair value estimates and make it impossible to reasonably assess
the probabilities of the various estimates within the range. This may change and reliable fair value measures become available as the related programmes approachthe end of production.

79

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

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

– Level 2: inputs other than quoted prices that are observablefor the asset or liability – fair values measured based on
Level 2 input typically rely on observable market data suchas interest rates, foreign exchange rates, credit spreads orvolatilities;– Level 3: inputs for the asset or liability that are not based on
observable market data – fair values measured based on
Level 3 input rely to a significant extent on estimates derived
from the Company’s own data and may require the use ofassumptions that are inherently judgemental and involve
various limitations.
The fair values disclosed for financial instruments accounted forat amortised cost reflect Level 2 input. Otherwise, theCompany determines mostly fair values based on Level 1 andLevel 2 inputs and to a lesser extent on Level 3 input.

Depending on the extent the inputs used to measure fair values
rely on observable market data, fair value measurements may
be hierarchised according to the following levels of input:– Level 1: quoted prices (unadjusted) in active markets for
identical assets and liabilities;

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 2022 and 2021, respectively:
2022

2021

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

1,896

0

744

2,640

1,808

0

703

2,511

0

1,894

0

1,894

0

1,005

0

1,005

7,775

0

0

7,775

8,111

0

0

8,111

0

0

86

86

0

0

118

118

11,1351,001

012,136

12,075533

012,60820,8062,895

830

24,531

21,994

1,538

821

24,353

Derivative instruments

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

0(4,485)(78)(4,563)

Other financial liabilities

0

0

(83)

(83)

0

0

(16)

(16)

0

(9,529)(167)(9,696)

0(4,485)(94)(4,579)(In € million)

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

Total
Financial liabilities measured at fair value

Total

80

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

The development of financial instruments of Level 3 is as follows:
Written put
options on Commodity
NCI
swap
interests agreements

Derivatives

Participations

Customerfinancing

Total

Balance at 1 January 2021

0

465

237

702

0

(12)

(12)

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

Release

0

0

0

0

0

0

0

Balance at 31 December 2021

0

703

118

821

(16)

(78)

(94)

Business combination

0

0

0

0

0

0

0

Profit or loss

0

0

(32)

(32)

0

(98)

(98)

Equity

0

41

0

41

(67)

0

(67)

Settlements

0

0

0

0

0

92

92

Others

0

0

0

0

0

0

0

Balance at 31 December 2022

0

744

86

830

(83)

(84)

(167)

(In € million)

As at 31 December 2022, the fair value of the written put
options on non‑controlling interests (“NCI puts”) relating to
ACLP amounts to €83 million (2021: €16 million) and includes
a funding of ACLP by IQ in 2022.

Total

The fair value of these NCI puts is 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 9.74% is used to discount the forecasted cash flows, taking into
account the specificities of the programme (2021: 9.58%).

Financial Assets Designated at Fair Value through Profit or Loss
The following types of financial assets held at 31 December 2022 and 2021, respectively, are designated at fair value through profit
or loss:(In € million)

Nominal amount at
initial recognition at
31 December 2022

Fair value at
31 December
2022

Nominal amount at
initial recognition at
31 December 2021

Fair value at
31 December
2021

11,135

11,135

12,075

12,07500

2

2

11,135

11,135

12,077

12,077

Designated at fair value through profit orloss 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.

81

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

Fair Value Measurement Method
The Company uses the following methods to measure fairvalues:quoted market prices, where available, but in most cases are
determined using recognised valuation techniques such as
option‑pricing models (e.g. Black & Scholes model) anddiscounted cash flow models. The valuation is based on
observable market data such as currency rates, currency
forward rates, interest rates and yield curves, commodity
forward prices as well as price and rate volatilities obtained
from recognised vendors of market data. Furthermore, to theextent that these instruments are subject to master netting
arrangements and similar agreements and managed on thebasis of net credit exposure, their fair values reflect credit anddebit value adjustments based on the net long or net shortposition that the Company has with each counterparty. Except
for certain short‑term commodity contracts and derivatives
presented in the Level 3 section above, derivative fair values
are measured based on Level 2 input.

Equity instruments — The fair values of listed equity
instruments reflect quoted market prices. For non‑listed equity
investments for which quoted market prices are not available,
the Company determines the fair values using valuation
methods such as net asset values, discounted cash flow
method or a comparable valuation technique.
Customer financing assets and other loans — The carrying
amounts reflected in the annual accounts are used as a proxyfor fair value.
Contract assets, trade receivables and other receivables —The carrying amounts reflected in the annual accounts are used
as reasonable estimates of fair value because of the relatively
short period between the receivables’ origination and theirmaturity.

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

Securities — The fair values of securities reflect their quoted
market price at the end of the reporting period.
Cash and cash equivalents — include cash in hand, cash inbanks, checks, fixed deposits as well as commercial papers
and money market funds. The carrying amounts reflected in theannual accounts are used as reasonable estimates of fair value
because of the relatively short period between the origination of
the instrument and its maturity or due date. The fair value ofcommercial papers is determined based on Level 2 input by
discounting future cash flows using appropriate interest rates.
The fair values of money market funds are determined byreference to their quoted market price.

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

Derivatives — The fair values of derivative instruments reflect

The following interest rate curves are used in the determination of the fair value in respect of the derivative financial instruments asof 31 December 2022 and 2021:
31 December
2022€(Rate in %)

82

2021

2022

2021

2022

US$

2021
£

6 months

2.39(0.49)

4.75

0.29

4.03

0.52

1 year2.80(0.48)

4.79

0.53

4.30

0.80

5 years

2.62

0.01

3.66

1.35

3.81

1.13

10 years

2.58

0.30

3.47

1.56

3.44

1.07

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

38.3

Potential Effect of Set‑Off Rights on Recognised Financial Assets andLiabilities

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

the balance sheet and the amount of cash received at theoutset of the transaction is separately recognised as a financial
liability. The following tables set out, on a counterparty specificbasis, the potential effect of master netting agreements andcollateralised borrowings on the Company’s Financial Position,
separately for financial assets and financial liabilities that were
subject to such agreements as of 31 December 2022 and
2021, respectively:

Related amounts not set off
in Statement of Financial
PositionGrossamounts
recognisedGrossamounts
recognised
set off in the
Financial
Statements

Net amounts
presented in
the Financial
Statements

Financial
instruments

Cashcollateral
received

Financial asset

1,821

0

1,821

(1,820)

0

1

Financial liabilities

9,449

0

9,449

(1,820)0

7,629

Financial asset

802

0

802

(788)

0

14

Financial liabilities

4,156

0

4,156

(788)

0

3,368

(In € million)

Net amount

31 December 2022

31 December 2021

38.4

Notional Amounts of Derivative Financial Instruments

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

1 year

2 years

3 years

4 years

5 years> 5 years

Total

20,076

18,636

12,128

8,100

7,284

1,201

67,425

21,225

17,923

17,102

10,899

8,161

7,233

82,54331 December 2022
Net forward and swap contracts
31 December 2021
Net forward sales contracts83

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

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

Total hedges

2023

2024

2025

2026

2027+

Total

22,737

21,274

13,772

9,138

9,467

76,388

1.21

1.23

1.24

1.30

1.30

1.24

Forward rates€/US$

In 2022 new hedge contracts of US$7.5 billion (2021: US$29.5 billion) were added at an average rate of 1.12 US$/€ (2021: 1.21
US$/€).
As of 31 December 2022, the total hedge portfolio with maturities up to 2029 amounts to US$76.4 billion (2021: US$88.3 billion)
and covers a major portion of the foreign exchange exposure expected over the hedging horizon. The average US$/€ hedge rate of
the US$/€ hedge portfolio until 2029 amounts to 1.24 US$/€ (2021: 1.25 US$/€).
(In £ million)

2023

2024

2025

2026

2027+

Total

Total hedges

852

789

537

333

311

2,822

0.88

0.89

0.90

0.91

0.93

0.89

Forward rates€/£

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

1 year

2 years

3 years

4 years

5 years

6 years

7 years> 7 years

Total

0

823

561

1,355

1,406

611

500

4,150

9,406

12

0

1,000

750

1,850

1,324

750

4,650

10,33631 December 2022
Interest rate contracts
31 December 2021
Interest rate contracts

Please also refer to “– Note 37.3: 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 2022

13

4

0

0

0

17

31 December 2021

20

21

3

0

0

44

(In € million)

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

2 years

3 years

4 years> 4 years

Total

31 December 2022

17

22

14

0

0

53

31 December 2021

18

17

18

10

0

63

(In € million)84

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

38.5

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
2022 and 31 December 2021:
31 December
2022

2021

Hedge reserve(In € million)

Opening balance

3,448

(262)

5,575

5,279

34

12

5,609

5,291

(2,358)

(64)

(7)

(3)

(2,365)

(67)

(146)

(106)

(1)

1

Amount classified to profit or loss (inefficiency)

(147)

(105)

Tax impact(857)(1,409)

Closing balance

5,688

3,448

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

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

OCI

Asset

Liability

Changes invalues of thehedging
instrument

Net forward sales contracts

1,492(7,643)

4,429

1,146

(146)

(2,358)Foreign exchange options

0

0

0

0

0

0

Embedded Derivatives

0

(60)

36

0

0

(7)

Interest rate risk

0

0

0

0

0

0

Commodity swap risk

6

0

(2)

0

(1)

0

Equity swap risk

1

(4)

0

0

0

0

1,499

(7,707)

4,463

1,146

(147)

(2,365)(In € million)

Other changes
in value of thehedge reserve

Hedge
Amounts
inefficiency reclassified fromrecorded in hedge reserve tofinancial result
profit or loss

Foreign currency risk

Total

85

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

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

OCI

Asset

Liability

Changes invalues of thehedging
instrument

Net forward sales contracts

637(4,092)

5,349

(72)

(106)

(64)

Foreign exchange options

0

0

0

2

0

0

Embedded Derivatives

0

(40)

30

0

0

(3)

Interest rate risk

0

(1)

0

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)

(In € million)

Other changes
in value of thehedge reserve

Hedge
Amounts
inefficiency reclassified fromrecorded in hedge reserve tofinancial result
profit or loss

Foreign currency risk

Total

38.6

Net Gains or Net Losses

The Company’s net gains or net losses recognised in profit or loss in 2022 and 2021, respectively, are as follows:
2022

2021

Held for trading

497

404

Designated on initial recognition

95

188

Financial assets at amortised cost

(232)

283

Financial assets at fair value through OCI (previously available‑for‑sale)55

20

Financial liabilities measured at amortised cost

(75)

(700)

(In € million)

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

Net losses of €-1,169 million (2021: €-218 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.

38.7

Impairment Losses

Loss allowances — For its portfolio of debt instruments
including bonds, term deposits and commercial papers, theCompany measures loss allowances at an amount that
represents credit losses resulting from default events that are
possible within the next 12 months, unless the credit risk on afinancial instrument has increased significantly since initial86

recognition. In the event of such significant increase in credit
risk the Company measures loss allowances for that financial
instrument at an amount equal to its life‑time expected losses,
i.e. at an amount equal to the expected credit losses that result
from all possible default events over the expected life of that
financial instrument.

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

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

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

Stage 1
12‑month ECLStage 2
Life‑time ECLStage 3Credit impaired ECL

Total

At 1 January 2022

12.08

20.74

18.77

51.59

Change in financial assets

3.82(5.44)(1.47)(3.09)

Change in risk parameters

1.32(6.95)

9.41

3.78

At 31 December 2022

17.22

8.35

26.71

52.28

Stage 1
12‑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

(In € million)(In € million)

The following table breaks down the gross carrying amount of loans and receivables as of 31 December 2022 and 2021,
separately showing those that are impaired, renegotiated or past due:Gross
impaired

Past due≤3monthsPast due> 3 and≤6
monthsPast due> 6 and≤9monthsPast due> 9 and≤ 12monthsPast due> 12monthsImpairment

Total

0

376

373

147

132

99

479

(380)

4,953

1,528

0

0

0

0

0

0

0

(1)

1,527

Others

2,552

2

93

131

391

116

7

452

(188)

3,556

Total

7,807

2

469

504

538

248

106

931

(569)

10,036

Not past
due

Renegotiated /not past due /not impaired

Trade receivables

3,727

Contract assets(In € million)

31 December 2022

87

2. Notes to the IFRS Consolidated Financial Statements
Other Notes

Gross
impaired

Past due≤3monthsPast due> 3 and≤6
monthsPast due> 6 and≤9monthsPast due> 9 and≤ 12monthsPast due> 12monthsImpairment

Total

3

356

485

124

207

64

393

(361)

4,957

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

7,393

6

604

553

246

219

93

857

(550)

9,421

Not past
due

Renegotiated /not past due /not impaired

Trade receivables (1)3,686Contract assets(In € million)

31 December 2021

(1) 2021 figures restated in accordance with 2022 presentation.

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 2022 and 2021, respectively:
2022

2021

Trade receivables

(65)

(83)

Contract assets

0

(1)

(65)

(84)

(In € million)

Total

2.8 Other Notes
39.

Litigation and Claims

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

88

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

2. Notes to the IFRS Consolidated Financial Statements
Other Notes

Investigation by the UK SFO, France’s
PNF, US Departments of State andJustice 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 ofJustice (“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 theirinvestigations into inaccurate and misleading filings made with
the DoS pursuant to the US International Traffic in Arms
Regulations (“ITAR”). The agreements were approved andmade 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 eachauthority 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 compliance measures. 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 continuingmonitorship to 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 periodicallyreport on its continuing compliance enhancement progress
during the three year term of the DPA and carry out further
reviews as required by the DoJ.
The agreements resulted in the suspension of prosecution for aduration of three years. This deferral period ended on
31 January 2023. The Company awaits the formal
determination by the authorities that it has complied with theagreements’ terms throughout the period whereupon it expects
the closure of the prosecutions in line with the procedural
requirements of each country.

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.
As a result of the Company’s decision to redirect export control
compliance resources to ensure compliance with export control
restrictions and international sanctions announced against
Russia, Belarus and certain Russian entities and individuals
following Russia’s invasion of Ukraine on 24 February 2022, theCompany asked the DoS to extend the Consent Agreement by
nine months. The DoS has granted the extension. The
Company does not expect the Consent Agreement extension
to have an impact on the DPAs with the SFO and DoJ, nor on
the CJIP with the PNF, nor on the AFA’s monitorship, as thoseare independent of the DoS’s civil compliance programme
review.
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.
In addition to any pending investigation in other jurisdictions,the factual disclosures made in the course of reaching theagreements may result in the commencement of additional
investigations in other jurisdictions. Such investigations could
also result in (i) civil claims or claims by shareholders against
the Company, (ii) adverse consequences on the Company’s
ability to obtain or continue financing for current or future
projects, (iii) limitations on the eligibility of group companies forcertain public sector contracts, and/or (iv) damage to theCompany’s business or reputation via negative publicity
adversely affecting the Company’s prospects in the commercial
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 have amaterial impact on the Financial Statements, business andoperations of the Company.

89

2. Notes to the IFRS Consolidated Financial Statements
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 asserted
violations of US securities laws. The complaint alleged that
defendants made false and misleading statements oromissions concerning, among other things, the Company’s
agreements approved on 31 January 2020 with the French
PNF, the UK SFO, the US DoJ and the US DoS as well as theCompany’s historic practices regarding the use of third party
business partners and anti‑corruption compliance. The matter
was fully and finally settled on 30 September 2022 in exchange
for a payment in the amount of $5,000,000 USD without any
acknowledgement of liability.
In addition, the Company received notification in August 2021of two separate claims and in March 2022 of a third claim, allalleging similar facts as the US class action. Three claims havebeen filed in the Netherlands purportedly on behalf of Airbus
investors.
The first Dutch claim was filed in August 2021 by a special
purpose vehicle incorporated under the laws of Guernsey, anassignee
purportedly
representing
numerous
privateshareholders and institutional investors, seeking a declaratory
judgment with damages to be assessed in follow onproceedings. 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 aclass action against the Company before the Dutch courts.
This second Dutch claim targets the Company, certain of theCompany’s current and former directors and officers, and theCompany’s current and former auditors.
The third Dutch claim was a class action filed in April 2022
against the Company by a foundation incorporated under thelaws of the Netherlands. In accordance with Dutch procedurallaw, the two Dutch class action claims are treated jointly as one
case.
The Dutch claims allege that the Company violated its reporting
obligations by failing to adequately inform investors andproviding false or misleading information about its use ofintermediaries and alleged corrupt practices, its related financial
exposure, internal investigations and subsequent measurestaken by the Company, 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 theCompany.

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 investigation report in July 2012. In the wake of theaccident, the prosecutor in Paris opened an investigation for
involuntary manslaughter and Airbus SAS was charged in
March 2011. In September 2019, the investigating magistrates
closed the investigation and dismissed all criminal charges after

a thorough analysis of the technical and legal elements of thecase. However, the Paris Court of Appeal overturned themagistrates’ decision and ordered trial for involuntarymanslaughter. The Company’s appeal to the French Supreme
Court has been dismissed. The trial took place in the fourth
quarter of 2022. The prosecutor recommended a dismissal of
all criminal charges against Air France and Airbus. The
judgment of the Paris Criminal Court expected on 17 April
2023, if 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 andalleging an underlying “design defect”, Qatar Airways filed a
legal claim against the Company in the London Commercial
Court on 17 December 2021. On 1 February 2023, the parties
announced they had reached an amicable and mutuallyagreeable settlement in relation to their legal dispute over A350

90

surface degradation and the grounding of A350 aircraft. The
parties have proceeded to discontinue their legal claims. The
settlement agreement is not an admission of liability for either
party. The parties have also agreed terms for the delivery of 50
A321 and 23 A350 aircraft.

2. Notes to the IFRS Consolidated Financial Statements
Other Notes

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

The Company intends to vigorously defend itself against theclaims, but such claims may generate negative publicity andreputational harm. The trial is scheduled to take place in thefirst quarter of 2024. Any judgment or decision unfavourable to
the Company could have a material adverse impact on the
Financial Statements, business and operations of the Company
as well as on its reputation.

Other Investigations
The Company cooperated fully with the authorities in relation to
three investigations initiated by independent magistrates inFrance concerning the activities of commercial intermediaries in
Libya, Kazakhstan, Kuwait and several Eastern European
countries. In recognition of the fulsome nature of thecooperation and upon payment of a penalty of €15.8 million, allthree investigations were closed by means of a Convention
judiciaire d’intérêt public (“CJIP”) with the PNF on 30 November
2022. This ends all remaining prosecutions in France for similar
historical activities.
In 2019, the Company self‑reported to German authorities
potentially improper advance receipt and communication ofconfidential customer information by employees of Airbus

40.

Defence and Space GmbH. The information concerned relates
to future German government procurement projects. The
self‑disclosure by the Company followed an internal review withthe support of an external law firm. Both the German Ministryof Defence and the Munich public prosecutor opened aninvestigation into the matter. The investigation could have an
impact on Airbus Defence and Space GmbH’s and Airbus
Secure Land Communications GmbH’s ability to participate in
future public procurement projects in Germany. In 2021 theMunich prosecution issued a penalty notice against Airbus
Defence and Space GmbH for €10 million for negligent
violation of supervisory duties in connection with this matter.
The Company continues to fully cooperate with relevant
authorities.

Auditor Fees

With reference to Section 2:382a (1) and (2) of the Netherlands Civil Code, the following fees for the financial year 2022 have been
charged by EY to the Company, its subsidiaries and other consolidated entities:
2022

2021

11,975

10,265

Other audit engagements

485

284

Tax services

316

497

Other non‑audit services

793

257

13,56911,303(In € thousand)Audit of the Financial Statements

Total

Other audit firms have audit fees related to audit process, certification and examination of individual and consolidated accounts of€7 million in 2022 (2021: €5 million).

41.

Events after the Reporting Date

On 1 February 2023, Qatar Airways and Airbus announced they had reached an amicable and mutually agreeable settlement inrelation to their legal dispute over A350 surface degradation and the grounding of A350 aircraft. The parties have proceeded to
discontinue their legal claims. The settlement agreement is not an admission of liability for either party (see “– Note 39: Litigation
and Claims”). The parties have also agreed terms for the delivery of 50 A321 and 23 A350 aircraft.

91

92

MBDA
(France)

37.5%*

11.29%

94.67%

Airbus Operations
Limited(UK)

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

Premium Aerotec
GmbH(Germany)

Airbus Operations
GmbH(Germany)

5.33 %

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)

Airbus Defence
and Space SAS(France)

Airbus DS Holding
SAS(France)99.99%

4.04%

Elbe
FlugzeugwerkeGmbH(Germany)

45%

Airbus Defence
and Space GmbH
(Germany)

88.71%

50%*

ATR GIE(France)(The Netherlands)

AIRBUS SE

Airbus Atlantic(France)

Computadoras,Redese Ingenieria, S.A.
(Spain)Airbus Defence
and Space, S.A.
(Spain)Airbus Canada
LimitedPartnership(Canada)75%*

Airbus SAS(France)

Airbus Group
Inc.
(USA)

Airbus Americas,
Inc.
(USA)

5.27%

94.73%

Airbus Helicopters
España, S.A.
(Spain)Airbus Helicopters
UK Limited(UK)

Airbus Helicopters
DeutschlandGmbH(Germany)

Airbus Helicopters(France)

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

2.9 Appendix “Simplified Airbus Structure”

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

93

94

Airbus SE IFRS - Company
Financial Statements
IFRS Company Income Statement for the Years Ended
31 December 2022 and 2021

96

IFRS Company Statement of Comprehensive Income for theYears Ended 31 December 2022 and 2021

96

IFRS Company Statement of Financial Position for the Years
Ended 31 December 2022 and 2021

97

IFRS Company Statement of Cash Flows for the Years Ended
31 December 2022 and 2021

98

IFRS Company Statement of Changes in Equity for the Years
Ended 31 December 2022 and 2021

99

95

3. Airbuse SE IFRS - Company Financial Statements
IFRS Company Income Statement for the Years Ended 31 December 2022 and 2021

IFRS Company Income Statement
for the Years Ended 31 December 2022 and 2021
2022

2021

Operating income

73

53

Operating expenses

(74)

(113)

Income from investments

219

28

8, 11

0

(21)

8

218

(53)

Interest income

311

63

Interest expense

(468)

(157)

Other financial result

391

32

234

(62)

452

(115)

(17)

1

435

(114)

(In € million)

Impairment of investments
Total operating result

Total financial result

Note

9

Profit (Loss) before income taxes
Income Taxes

10

Profit (Loss) for the period

IFRS Company Statement of Comprehensive Income
for the Years Ended 31 December 2022 and 2021
2022

2021

435

(114)

(676)

(80)

0

0

Other comprehensive income, net of tax

(676)

(80)

Total comprehensive income of the period

(241)

(194)

(In € million)

Profit (Loss) for the period
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 hedges96

3. Airbuse SE IFRS - Company Financial Statements
IFRS Company Statement of Financial Position for the Years Ended 31 December 2022 and 2021

IFRS Company Statement of Financial Position
for the Years Ended 31 December 2022 and 2021
Note

2022

2021

Investments in subsidiaries and associates

11

20,27017,334Long‑term financial assets

12

2,040

1,389

Non‑current other financial assets

12

4,233

2,931

14

14

0

0

(In € million)

AssetsNon‑current assets

Non‑current other assets
Deferred tax assets

10

Non‑current securities

16

Total non‑current assets

5,662

6,477

32,21928,14528

19

Current assets
Trade receivables
Short‑term financial assets

12

35

9

Current other financial assets

12

3,596

1,981

Current accounts Airbus companies

12

9,670

11,239139

96

Current other assets
Current securities

16

1,692

1,245

Cash and cash equivalents

16

13,283

13,145

Total current assets

28,44327,734

Total assets

60,66255,879Equity and liabilities
Stockholders’ equity

15

Capital stock

789

787

Share premium

3,837

3,712

Retained earnings

3,616

4,796

Legal reserves

(634)

42

Treasury shares

(68)

(45)

Result of the year

435

(114)

7,975

9,178

Total equity
Non‑current liabilities
Long‑term financing liabilities

16

7,903

10,328Non‑current other financial liabilities

12

5,653

2,836

Deferred tax liabilities

10

Total non‑current liabilities

0013,556

13,164Current liabilities
Short‑term financing liabilities

16

0

591

Current accounts Airbus companies

12

35,35530,756

Current other financial liabilities

12

3,602

1,982

Current other liabilities

174

208

Total current liabilities

39,13133,537

Total equity and liabilities

60,66255,87997

3. Airbuse SE IFRS - Company Financial Statements
IFRS Company Statement of Cash Flows for the Years Ended 31 December 2022 and 2021

IFRS Company Statement of Cash Flowsfor the Years Ended 31 December 2022 and 2021
(In € million)

Note

2022

2021

435

(114)

0

0

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

(311)

(63)

Interest expense

468

157

Interest received

342

93

Interest paid

(476)

(205)

Tax expense (income)

10

17

(1)

Impairment of Investments

11

0

21

Valuation adjustments

(561)

(460)

Dividends income

(194)

(17)

10

30

Change in current and non‑current provisions
Change in other operating assets and liabilities

(117)

440

Trade receivables

(9)

483

Trade liabilities

(44)

(68)

Other assets and liabilities and others

(64)

25

Cash provided by (used for) operating activities

(387)

(119)

(2,374)(550)

Payments for long‑term financial assets(1,581)(130)

Proceeds from long‑term financial assets

954

504

Proceeds from subsidiaries, joint ventures, businesses and non‑controlling interests (netof cash)43

2

Investing activities
Acquisitions of subsidiaries, joint ventures, businesses and non‑controlling interests (netof cash)11

Dividends received
Payments for investments in securities

194

17

(1,674)(2,890)

Proceeds from disposals of securities

1,382

1,730

Cash provided by (used for) investing activities(3,056)(1,317)

Financing activities
Increase in financing liabilities

0591(1,569)(1,985)

Change in current accounts Airbus companies

6,075

5,541

Cash distribution to Airbus SE shareholders(1,181)0Changes in capital

140

134

Change in treasury shares

(36)

(22)

Repayment of financing liabilities

Cash provided by (used for) financing activities

3,429

4,259

Effect of foreign exchange rate changes on cash and cash equivalents

152

(349)

Net increase in cash and cash equivalents

138

2,474

13,145

10,671

13,283

13,145

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

98

16

3. Airbuse SE IFRS - Company Financial Statements
IFRS Company Statement of Changes in Equity for the Years Ended 31 December 2022 and 2021

IFRS Company Statement of Changes in Equity
for the Years Ended 31 December 2022 and 2021
Legal reserves (1)(In € million)

Note

Capitalstock

Financial
Share Retained assets at
premium earnings fair value

Cash
flow
hedgesTreasurysharesTotalequityBalance at 1 January 2021

785

3,599

4,735

122

0

(42)

9,199

Profit (Loss) for the period

0

0

(114)

0

0

0

(114)

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

0

0

0

0

0

0

0

Change in treasury shares

0

0

0

0

0

(3)

(3)

787

3,712

4,682

42

0

(45)

9,178

Profit (Loss) for the period

0

0

435

0

0

0

435

Other comprehensive income

0

0

0

(676)

0

0

(676)

Total comprehensive income for the period

0

0

435

(676)

0

0

(241)

2

125

0

0

0

0

127

0

0

115

0

0

0

115

Balance at 31 December 2021

Capital increase

15

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

15

0

0

(1,181)000(1,181)

Change in treasury shares

15

0

0

0

0

0

(23)

(23)

789

3,837

4,051

(634)

0

(68)

7,975

Balance at 31 December 2022
(1) The distribution of Legal Reserves, when positive, is restricted by Dutch law.

99

100

Notes to the IFRS Company
Financial Statements
4.1 Basis of Preparation

103

4.2 Company Performance106

4.3 Operational Assets and Liabilities

109

4.4 Employees

112

4.5 Capital Structure and Financial Instruments

112

4.6 Other Notes

125

101

4. Notes to the IFRS Company Financial Statements

Contents

102

4.1 Basis of Preparation

103

4.3 Operational Assets and Liabilities

109

1. The Company

103

12. Financial Assets and Financial Liabilities

111

2. Ukraine Crisis

103

13. Commitments and Contingencies

111

3. Macroeconomic Environment

103

4.4 Employees

112

4. Significant Accounting Policies

103

5. Key Estimates and Judgements

104

14. Number of Employees

112

6. Climate impacts

104

4.5 Capital Structure and Financial Instruments

112

7. Related Party Transactions

105

15. Total Equity

112

4.2 Company Performance106

16. Cash, Securities and Financing Liabilities

114

8. Total Operating Result

106

17. Information about Financial Instruments

117

9. Total Financial Result

106

4.6 Other Notes

125

10. Income Taxes

107

18. Auditor Fees

125

19. Events after the Reporting Date125

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

4.1 Basis of Preparation
1.

The Company

The Company’s principal activity is acting as a holding andmanagement company for the subsidiaries of Airbus SE, the“Company”, a 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
were authorised for issue by the Company’s Board of Directors
on 15 February 2023.

Ukraine Crisis

Regarding the impact of the Ukraine Crisis, please refer to “– Note 2: Ukraine Crisis” of the Consolidated Financial Statements.

3.

Macroeconomic Environment

Regarding the impact of changes in the macroeconomic environment, please refer to “– Note 3: Macroeconomic Environment” of
the Consolidated Financial Statements.

4.

Significant Accounting Policies

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

Due to this application, the Company equity and net result are
not equal to the consolidated equity and net result. A
reconciliation of the total shareholders’ equity and profit for theperiod is presented in “– Note 15: Total Equity” of the Company
Financial Statements.
The Company Financial Statements have been prepared on ahistorical cost basis, except for the equity instruments,
securities and derivative instruments that have been measured
at fair value.
Regarding the application of new, revised or amended IFRS
issued and applying from 1 January 2022 and issued but not
yet applied please refer to “– Note 6: 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 implementation of
the new standards not yet applied. Further information about
Share‑based payment and Employee Stock Ownership Plans(ESOP) is presented in “– Note 33: Share‑Based Payment” and“– Note 34: Remuneration” of the Consolidated Financial
Statements.

103

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

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 2022 and have not been applied in preparing these Financial Statements and early adoption is
not planned:
IASB effective date for annual reporting
periods beginning on or afterEndorsement
statusIFRS 17 “Insurance Contracts”

1 January 2023

Endorsed

Amendments to IAS 8 “Definition of Accounting Estimates”

1 January 2023

Endorsed

Amendments to IAS 1 “Presentation of Financial Statements and IFRS PracticeStatement 2: Disclosure of Accounting policies”

1 January 2023

Endorsed

Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from aSingle Transaction”

1 January 2023

Endorsed

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

1 January 2023

Endorsed

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

1 January 2024

Not yet endorsed

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

1 January 2024

Not yet endorsed

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

1 January 2024

Not yet endorsedStandards and related amendments

The information with regard to Capital Management isdisclosed in “– Note 36: Capital Management”, further
information about Litigation and Claims refers to “– Note 39:
Litigation and Claims” and Events after the Reporting Date aredisclosed in “– Note 41: Events after the Reporting Date” of theConsolidated Financial Statements.

5.

Key Estimates and Judgements

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

6.

The details regarding the use of estimates and judgements aredescribed in “– Note 5: Key Estimates and Judgements” of theConsolidated Financial Statements.
Key accounting estimates and judgements affecting theassessment and measurement of impairment are included in “–
Note 11: Investments in Subsidiaries, Associates andParticipations” of the Company Financial Statements.

Climate impacts

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

104

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.

and the wider air transport ecosystem. Regarding the Climate
impacts please refer to “– Note 7: Climate impacts” of theConsolidated Financial Statements.

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

7.

Related Party Transactions

Key Management Personnel
The details regarding the compensation of key management personnel are described in “– Note 34: Remuneration” of theConsolidated Financial Statements.

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

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

The following table discloses the related party intercompany transactions in 2022 and 2021:
2022

2021

Total transactions
with subsidiaries

Total transactions
with associates

Total transactions
with subsidiaries

Total transactions
with associates

Sales of goods and services and other income

377

9

103

37

Purchase of goods and services and other expenses

(265)

(9)

(314)

(1)

Receivables at 31 December

9,698

1

11,2580Liabilities at 31 December(34,101)(1)(29,369)

0

1,971

87

1,290

108

0

(1,255)(591) (1)(1,410)Hedge relationships receivables at 31 December

7,081

0

4,140

0

Hedge relationship payables at 31 December

(770)

0

(585)

0

(In € million)

Loans granted / Other receivables due at 31 December
Loans received / Other liabilities due at 31 December(1) Due to the merge of Airbus Finance BV, the existing loans between the Company and the subsidiary have been acquired and cancelled and the bonds of Airbus
Finance BV from third parties have also been acquired (see “– Note 11: Investments in Subsidiaries, Associates and Participations”).

For further information about granted guarantees to subsidiaries please refer to “– Note 13: 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 17.7:
Impairment Losses” of the Company Financial Statements.

105

4. Notes to the IFRS Company Financial Statements
Company Performance

4.2 Company Performance8.

Total Operating Result
Note

2022

2021

Operating income

73

53

Corporate services rendered to Airbus companies

73

53

Operating expenses

(74)

(113)

Service fees charged by Airbus companies

(17)

(50)

Administrative expenses

(57)

(63)

Income from investments

219

28

Dividends received from Airbus companies

194

17

Gain on disposal of investments

25

11

Expense from investments

0

(21)

0

(21)

218

(53)

(In € million)

Impairment

11

Total operating result

Corporate services rendered to Airbus companies increased by €20 million to €73 million (2021: €53 million).

9.

Total Financial Result
2022

2021

(157)

(94)

Interest income from securities measured at fair value through OCI

35

28

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

75

(20)

Interest income on financial assets measured at amortised cost

201

55

Interest expense on financial liabilities measured at amortised cost

(468)

(157)

Other financial result

391

32

(In € million)

Note

Interest result

Change in fair value measurement of financial assets

11

464

57

Impairment and Expected Credit Loss

17

5

79

Others (1)

(78)

(104)

Total financial result

234

(62)

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

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

106

4. Notes to the IFRS Company Financial Statements
Company Performance

10.

Income Taxes

The Company is tax registered in the Netherlands. The
Company is heading a fiscal unity, which also includes Airbus
Defence and Space Netherlands B.V. Until 31 December 2021
Airbus Group Finance B.V. was included (see “– Note 11:
Investments in Subsidiaries, Associates and Participations” of
the Company Financial Statements). Therefore the Company isseverally and jointly liable for income tax liabilities of the fiscal
unity as a whole.
Income taxes — The tax expense for the year comprises
deferred tax. Tax is recognised in the Income Statement,
except to the extent that it relates to items recognised directlyin Other Comprehensive Income.

The amount of income tax included in the Income Statement isdetermined in accordance with the rules established by the tax
authorities in the Netherlands, based on which income taxes
are payable or recoverable.
Deferred tax assets and/or liabilities, arising from temporary
differences between the carrying amounts of assets andliabilities and the tax base of assets and liabilities, arecalculated using the substantively enacted tax rates expected
to apply when they are realised or settled. Deferred tax assets
are recognised if it is probable that they will be realised.

The expense for income taxes is comprised of the following:
2022

2021

Current tax income (expense)(2)0

Deferred tax income (expense)

(15)

1

Total

(17)

1

(In € million)

The following table shows reconciliation from the theoretical income tax (expense) using the Dutch corporate tax rate to thereported income tax (expense):
2022

2021

452

(115)

Corporate income tax rate

25.8%

25.0%

Expected income (expense) for income taxes

(117)

29

Effects from tax rate differentials / Change of tax rate

03

Non‑taxable income from investment and associates

170

18

Income from other companies within the fiscal unity(1)0

Impairment on investment and associates

034

Other non‑deductible expenses and tax‑free income

(3)

22

Changes in valuation allowances (1)

(66)

(105)

Reported income (expense) for income taxes

(17)

1

(In € million)

Profit (loss) before income taxes(1) Reassessment of recoverability of deferred tax assets based on future taxable profits.

107

4. Notes to the IFRS Company Financial Statements
Company Performance

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

1 January 2022

Other movements

Movement
throughincomestatement

31 December 2022

Deferredtax benefit(expense)

Deferredtax
assetsDeferredtax
assetsDeferredtax
liabilities

OCI

OthersSecurities

0

(15)

179

0

0

164

0

Financial instruments

44

0

0

0

63

125

(18)

Net operating loss and tax loss carry forwards

75

0

0

0

(15)

60

0

Deferred tax assets (liabilities) before offsetting

119

(15)

179

0

47

349

(18)

Valuation allowances on deferred tax assets

(104)

0

(164)

0

(63)

(331)

0

Set‑off

(15)

15

0

0

0

(18)

18

0

0

15

0

(15)

0

0

(In € million)

Net deferred tax assets (liabilities)

Deferredtax
liabilities

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

1 January 2021

Other movements

Movement
throughincomestatement

31 December 2021
Deferredtax
assetsDeferredtax
liabilities

Deferredtax
assetsDeferredtax
liabilities

OCI

OthersDeferredtax benefit(expense)

Securities

0

(41)

26

0

0

0

(15)

Financial instruments

4

0

0

0

39

44

0

(In € million)

Net operating loss and tax loss carry forwards

10

0

0

0

65

75

0

Deferred tax assets (liabilities) before offsetting

14

(41)

26

0

105

119

(15)

Valuation allowances on deferred tax assets
Set‑off

Net deferred tax assets (liabilities) (1)

0

0

0

0

(104)

(104)

0

(14)

14

0

0

0

(15)

15

0

(27)

26

0

1

0

0

(1) 2021 figures restated in accordance with 2022 presentation.

Details of net deferred taxes recognised cumulatively in equity are as follows:
31 December
2022

2021

Financial instrument at fair value through OCI

0

(15)

Total

0

(15)

(In € million)

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

NOLs
Tax credit carry forwards

2022

2021

231

292

0

0

Tax effect60

75

Valuation allowances

(60)

(75)

0

0

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 EUR 1 million will only beoffsettable for up to 50 percent of that higher taxable profit against losses, minus an amount of EUR 1 million.

108

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

4.3 Operational Assets and Liabilities
11.

Investments in Subsidiaries, Associates and Participations
Subsidiaries

Associates

Participations

Total

15,72149

920

16,690Additions

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

Additions

2,369

0

5

2,374

Disposals

(18)

0

0

(18)

Impairment

0

0

0

0

115

0

0

115

0

0

464

464

18,77549

1,446

20,270(In € million)

Balance at 1 January 2021

Balance at 31 December 2021

Share‑based payment (IFRS 2)
Fair value changes through Profit or Loss (1)Balance at 31 December 2022

(1) For more details please refer to “– Note 22: Other Investments and Other Long‑Term Financial Assets” of the Consolidated Financial Statements.

Investments in Subsidiaries, Associated Companies and Participations
Investments in subsidiaries and associated companies arestated at cost, less impairment. Dividend income from theCompany’s subsidiaries and associated companies isrecognised when the right to receive payment is established.
The participations are stated at fair value with 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
is an indication that a CGU to which its investments in
subsidiaries and associated companies belong to are impaired.
An indication for impairment of the investments in subsidiaries
and associated companies may include, respectively,
management’s downward adjustment of the strategic plan, asignificant decrease in the share price of a publicly listedcompany or a significant decrease in future sales. Further
indications for impairment of its investments may include otherareas where observable data indicates that there is ameasurable decrease in the estimated future cash flows. These
determinations require significant judgment. In making thisjudgment, management evaluates, among other factors, thefinancial performance of and business outlook for its
investments, including factors such as industry and sector
performance, changes in technology and operational andfinancing cash flow.
If any indication for impairment exists, the recoverable amountof the investments is estimated in order to determine theamount, if any, of the impairment loss. An investment isimpaired if its recoverable amount is lower than its carrying
value. The recoverable amount is defined as the higher of aninvestment’s fair value less costs of disposal and its value in
use.

109

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

The determination of the investment’s value in use is based on
calculations using pre‑tax cash flow projections based on
financial budgets approved by management covering afive‑year period. Cash flows beyond the five‑year period are
extrapolated using estimated growth rates. The discounted
cash flow method is used to determine the recoverable amountof a CGU to which its investments in subsidiaries andassociated 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 the recoverable 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 andthe estimated growth rate of terminal values.

If the recoverable amount of an investment is estimated to beless than its carrying amount, the carrying amount of theinvestment is reduced to its recoverable amount. Any
impairment loss is recognised immediately in the Income
Statement.
Impairment losses recognised in prior periods shall be reversed
only if there has been a change in the estimates or externalmarket information used to determine the investment’s
recoverable amount since the last impairment loss wasrecognised. The recoverable amount shall not exceed thecarrying amount that would have been determined had no
impairment loss been recognised in prior years.
The annual impairment test performed in 2022 led to an
impairment charge of €0 million (2021: €21 million).

Change of Investments in Subsidiaries and Associates
On 26 October 2022, Airbus SE contributed 1,05% of theshares of Airbus SAS to Airbus Defence and Space S.A.U (awholly owned subsidiary of Airbus SE) for a value of€121 million.
On 27 October 2022, Airbus SE made a further capital
contribution of €540 million into Premium AEROTEC GmbH.
Following the creation of Airbus Aerostructures GmbH on
1 July 2022 (indirectly owned by the Company), which includes
four production sites in Germany: the Hamburg plant andheadquarters, the plant in Stade, and the former Premium
AEROTEC plants of Nordenham and Bremen, the shareholdingof Airbus SE in Premium AEROTEC GmbH has been diluted.
Nevertheless Premium AEROTEC GmbH remains indirectly fully
owned by Airbus SE.

On 30 November 2022, Airbus Proj B.V. merged with Airbus
Defence and Space Netherlands B.V. - As a consequence,both the value of the investment and of the impairment havebeen recorded through profit and loss with a net impact of€0 million (2021: € (187) million).
On 14 December 2022, Airbus SE made a further capital
contribution of €1,800 million into Airbus Defence andSpace GmbH.
During the year 2022, Airbus SE made other contributions toparticipations and subsidiaries for a total amount of €34 million.

Information on principal investments of the Company:
2022

2021
%

Company

Head office100.00 100.00

Aero Ré S.A.

Bertrange (Luxembourg)

88.71

Airbus Defence and Space GmbH

Taufkirchen (Germany)

100.00 100.00

88.71

Airbus Defence and Space Limited

Stevenage (UK)100.00 100.00

Airbus Defence and Space Netherlands B.V.

Leiden (Netherlands)

100.00 100.00

Airbus Defence and Space S.A.

Madrid (Spain)

100.00 100.00

Airbus Bank GmbH

Munich (Germany)

0.00 100.00

Airbus Group Proj B.V.

Leiden (Netherlands)

Airbus S.A.S.

Toulouse (France)

94.73

95.78

9.90

9.90

Dassault Aviation S.A.

Paris (France)

5.33 100.00

Premium Aerotec GmbH

Augsburg (Germany)

MIRIS

Brussels (Belgium)

8.33

0.00

Percentages represent share held directly by Airbus SE

110

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

12.

Financial Assets and Financial Liabilities

Financial assets at 31 December 2022 and 2021:
31 December
2022

2021

2,040

1,389

0

0

Positive fair values of derivative financial instruments

4,233

2,931

Non‑current financial assets

6,273

4,320

Positive fair values of derivative financial instruments

3,596

1,981

Current portion long‑term loans Airbus companies

35

9(In € million)

Long‑term loans Airbus companies(1)Long‑term loans external

Current accounts Airbus companies

(1)

9,670

11,239Current financial assets

13,301

13,229Total

19,574

17,549(1) The receivables from subsidiaries include mainly transactions in connection with the cash pooling in Airbus SE. Terms and conditions are in agreement with theprevailing market environment.

Financial liabilities at 31 December 2022 and 2021:
31 December(In € million)

2022

2021

Negative fair values of derivative financial instruments

5,653

2,836

Non‑current financial liabilities

5,653

2,836

Negative fair values of derivative financial instruments

3,602

1,982

Current accounts Airbus companies (1)35,35530,756

Current financial liabilities

38,95732,738

Total

44,61035,574(1) The liabilities to subsidiaries include mainly transactions in connection with the cash pooling in Airbus SE. Terms and conditions are in agreement with the prevailingmarket environment

13.

Commitments and Contingencies

Off‑Balance Sheet Commitments
Airbus SE issued guarantees on behalf of Airbus companies in
the amount of €10,508 million (2021: €10,858 million). The
commitments of these companies to third parties mainly relate
to their operating business as described in “– Note 21:
Property, Plant and Equipment”, “– Note 28: Sales Financing
Transactions” and “– Note 38: Financial Instruments” of theConsolidated Financial Statements.
On 8 December 2015, Airbus SE entered into a partnershipagreement to establish a corporate venture capital fund,dubbed Airbus Ventures Fund II, as well as a technology andbusiness innovation center in Silicon Valley with a totalcommitment amount of US$150 million. The remaining
commitment is US$8 million at 31 December 2022.
On 1 April 2019, Airbus SE entered into a partnershipagreement with effective date 1 July 2019 to establish aventure capital fund, dubbed Airbus Ventures Fund III, with a
total commitment amount of US$100 million. The remaining
commitment is US$21 million at 31 December 2022.
On 22 October 2022, Airbus SE entered into a partnershipagreement to establish a venture capital fund, dubbed Airbus
Ventures Fund IV, with a total commitment amount of
US$75 million.
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.

111

4. Notes to the IFRS Company Financial Statements
Employees

4.4 Employees
14.

Number of Employees

The average number of the persons employed by the Company in 2022 was 0 (2021: 1).

4.5 Capital Structure and Financial Instruments
15.

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:
2022

2021

786,083,690

784,149,270

2,121,318

1,934,420

788,205,008

786,083,690(647,500)(454,735)

Outstanding at 31 December

787,557,508

785,628,955

Authorised shares

3,000,000,000

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

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

Holders of ordinary shares are entitled to dividends and are entitled to one vote per share at general meetings of the Company.
Capital stock comprises the nominal amount of shares
outstanding. The addition to capital stock represents thecontribution for exercised options by employees of €2,121,318(in 2021: €1,934,420) 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 12 April 2022, the Annual General Meeting (“AGM”) decided
to distribute a gross amount of €1.50 per share, which was
paid on 21 April 2022. For the fiscal year 2022, the Company’s
Board of Directors proposes a cash distribution payment of€1.80 per share.

112

Legal reserves include:– change from financial assets at fair value (see “– Note 17:
Information about Financial Instruments” of the Company
Financial Statements);– change in fair value of derivatives designated as cash flow
hedges (see “– Note 17: Information about Financial
Instruments” of the Company Financial Statements).
According to Dutch law, the OCI is considered to be a Legal
Reserve and therefore when positive, the distribution isrestricted.
Treasury shares represent the amount paid or payable for own
shares held in treasury. During 2022, the number of treasury
stock held by the Company increased to 647,500 compared to454,735 as of 31 December 2021, mainly due to the sharebuybacks partly offset by vested shares in 2022 under LTIP
2018 (see “– Note 33: Share‑based Payment” of theConsolidated Financial Statements). No shares were sold backto the market nor cancelled in 2022 (2021: 0 shares).

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

Authorisations Granted by the Annual’ General Meeting of Airbus SE Held on 12 April
2022
On 12 April 2022, the AGM of the Company authorised theBoard of Directors, for a period expiring at the AGM to be heldin 2023, to issue shares and to grant rights to subscribe forshares in the Company’s share capital for the purpose of:

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

– ESOPs and share‑related LTIPs, provided that such powers
shall be limited to an aggregate of 0.14% of the Company’s
authorised share capital (see “– Note 33: Share‑Based
Payment” of the Consolidated Financial Statements);

Also on 12 April 2022, the AGM authorised the Board of
Directors for an 18 months period to repurchase up to 10% of
the Company’s issued share capital at a price per share notless than the nominal value and not more than the higher of theprice of the last independent trade and the highest current
independent bid on the trading venues of the regulated marketof the country in which the purchase is carried out.

– funding the Company and its subsidiaries, provided thatsuch powers shall be limited to an aggregate of 0.3% of theCompany’s authorised share capital (see “– Note 37.3:
Financing Liabilities” of the Consolidated Financial
Statements).

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

Reconciliation Consolidated to Company Equity and Net Income
The difference between the total shareholders’ equity according to the Consolidated Financial Statements and Company’s Financial
Statements as at 31 December 2022 and 2021 is as follows:
2022

2021

12,9509,466

OCI - Restatement of investments from Consolidated to Company
Financial Statements

4,382

1,864

Retained Earnings - Restatement of investments from Consolidated toCompany Financial Statements(9,819)(2,610)Retained Earnings - Valuation investments at historical cost

1,487

1,487

Retained Earnings - Impairment of financial assets(1,025)(1,029)Company’s equity

7,975

9,178

(In € million)

Consolidated equity

The difference between the net income according to the Consolidated Financial Statements and Company’s Financial Statements
for the year ended 31 December 2022 and 2021 is as follows:(In € million)

2022

2021

Consolidated net income

4,247

4,213

Income from investments according to Consolidated Financial Statements(4,012)(4,571)

Income from investments according to Company Financial Statements
Loss on / Impairment of financial assets
Other valuation differences

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

200

17

0

244

0

(17)

435

(114)

113

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

16.

Cash, Securities and Financing Liabilities

16.1

Net Cash
31 December
2022

2021

Cash and cash equivalents

13,283

13,145Current securities

1,692

1,245

(In € million)

Non‑current securities

5,662

6,477

Gross cash position

20,637

20,867

Short‑term financing liabilities

0

(591)

Long‑term financing liabilities(7,903)(10,328)

Interest rate swap (1)(1,394)97

Total

11,34010,045(1) The company has decided to refine the net cash definition to include interest rate contracts related to fair value hedges, which is reflected in the 2022 and 2021
balances.

The net cash position on 31 December 2022 amounted to €11,340 million (2021: €10,045 million), with a gross cash position of€20,636 million (2021: €20,867 million).

16.2

Cash and Cash Equivalents

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

2022

2021

Bank account and petty cash

1,147

537

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

11,135

12,075

Short‑term securities (at fair value through OCI)

1,001

533

13,283

13,145

Total cash and cash equivalents

Only securities with a maturity of three months or less from the dateof the acquisition, that are readily convertible to known amounts ofcash and which are subject to an insignificant risk of changes invalue are recognised in cash equivalents.
The main variations are as follows:
Cash provided by operating activities amounted to €-387 million in
2022.
Cash used for investing activities amounted to €-3,056 million,
mainly reflecting the net investment in securities €-291 million andthe net investment in subsidiaries €-2,374 million (see “– Note 11:114

Investments in Subsidiaries, Associates and Participations” of theCompany Financial Statements).
Cash used for financing activities amounted to €3,429 million andmainly reflects the increase in current accounts Airbus companies€6,076 million, the pre‑payment of a €1 billion bond, the repaymentof the repo transaction with Airbus Bank €591 million and thedividend payment €1,181 million (see “– Note 16: Cash, Securities
and Financing Liabilities” of the Company Financial Statements).
See IFRS Company Statement of Cash Flows for the years ended
31 December 2022 and 2021.

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

16.3

Securities
31 December(In € million)

2022

2021

Current securities (at fair value through OCI)

1,692

1,245

Non‑current securities (at fair value through OCI)

5,662

6,477

Total securities

7,354

7,721

The majority of the Company’s securities consists of debt securities
and are classified at fair value through OCI (see “– Note 38.2:
Carrying Amounts and Fair Values of Financial Instruments” of theConsolidated Financial Statements).
The Company’s securities portfolio amounts to €7,354 million and€7,721 million as of 31 December 2022 and 2021, respectively.
The security portfolio contains a non‑current portion of€5,662 million (2021: €6,477 million), and a current portion of€1,692 million (2021: €1,245 million).

Included in the securities portfolio as of 31 December 2022 and
2021, respectively, are corporate and government bonds bearing
either fixed rate coupons (€7,953 million nominal value; 2021:€7,497 million) or floating rate coupons (€0 million nominal value;
2021: €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 2022 and 2021, there were no securities
pledged as collateral for borrowings from banks.

115

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

16.4

Financing Liabilities

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

Principal
amount31 December

Couponor interest
2021
rate

(In million)

2022

Effective
interest
rate

Maturity

Additional features

Loans from financial institutions
Airbus Bank GmbH

0

591

Bonds
EMTN 15 years

€500

444

525

2.12%

2.21%

Oct. 2029

Interest rate swapped
into 3M Euribor +0.84%

EMTN 10 years

€823

799

1,043

2.38%

2.42%

Apr. 2024

Interest rate swapped
into 3M Euribor +1.40%

EMTN 10 years

€461

419

645

0.88%

0.98%

May 2026

Interest rate swapped
into 3M Euribor +0.50%

EMTN 15 years

€900

737

903

1.38%

1.50%

May 2031

Interest rate swapped
into 3M Euribor +0.66%

EMTN 5 years

€561

515

732

1.63%

1,80%

Apr. 2025

Interest rate swapped
into 3M Euribor +2.01%

EMTN 8 years

€611

512

725

2.00%

2.10%

Apr. 2028

Interest rate swapped
into 3M Euribor +2.15%

EMTN 12 years€1,000

754

957

2,38%

2.49%

Apr. 2032

Interest rate swapped
into 3M Euribor +2.24%

EMTN 6 years

€894

792

1,215

1,38%

1,47%

Jun. 2026

Interest rate swapped
into 3M Euribor +1.66%

EMTN 10 years€1,250

989

1,200

1.63%

1,74%

Jun. 2030

Interest rate swapped
into 3M Euribor +1.61%

EMTN 20 years€1,000

646

958

2.38%

2,44%

Jun. 2040

Interest rate swapped
into 3M Euribor +1.93%

US$ Bond 10 years

US$750

653

694

3.15%

3.20%

April 2027

Interest rate swapped into
3M Libor +0.87%

US$ Bond 30 years

US$750

643

731

3.95%

4.02%

April 2047

Interest rate swapped into
3M Libor +1.61%

7,903

10,919

7,903

10,328

0

591

Total
Thereof non‑current financing liabilities
Thereof current financing liabilities

Long‑term financing liabilities, mainly comprising bonds and liabilities to financial institutions, decreased by € -2,425 million to€7,903 million (2021: €10,328 million), mainly due to the decrease in values of bonds linked to higher interest rates and a €1 billion
bond buyback performed in June 2022 (see “– Note 17: Information about Financial Instruments” of the Company Financial
Statements).
Short‑term financing liabilities decreased by €-591 million to €0 million (2021: €591 million), mainly due to repayment of the repo
transaction with Airbus Bank. As part of group‑wide liquidity management, the Company could agree on repo transaction with
Airbus Bank to increase flexibility and short‑term borrowing capacity.
The Company can issue commercial papers under its €11 billion Negotiable European Commercial Paper (“NEuCP”) programme,its €4 billion Euro Commercial Paper (“ECP”) programme and its US$3 billion US Commercial Paper programme.
As of 31 December 2022, there were no outstanding amounts under any of its Commercial Paper Programme.

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

Reconciliation of liabilities arising from financing liabilities:
Non‑cash movements

Cash flows

Fair value
through profit
or loss

Foreignexchange
movements

10,328(978)(1,517)

80

(10)

7,903

0

0

0

0

0

0

591

(591)

0

0

0

0

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

80

(10)

7,903

Balance at
1 January2022

Bonds and commercial papers
Liabilities to financial institutions(In € million)

Loans from Subsidiaries

Total

Balance at
31 December
Others2022

Non‑cash movements

Cash flows

Fair value
through profit
or loss

Foreignexchange
movements

Others (1)Balance at
31 December
2021

8,358

(1,078)

(46)

102

2,992

10,328

81

(82)

0

1

0

0

4,073

(233)

(279)

10

(2,979)591

12,512(1,394)

(325)

113

14

10,919Balance at
1 January
2021

Bonds and commercial papers
Liabilities to financial institutions(In € million)

Loans from Subsidiairies

Total(1) Due to the merge of Airbus Finance BV, the existing loans between the Company and the subsidiary have been acquired and cancelled and the bonds of Airbus
Finance BV from third parties have also been acquired (see “– Note 11: Investments in Subsidiaries, Associates and Participations” of the Company Financial
Statements).

17.

Information about Financial Instruments

17.1

Financial Risk Management

The Company acts as an intermediary for its subsidiaries when
they wish to enter into derivative contracts to hedge against
foreign exchange risk or other market risks such as interest raterisk, commodity price risk or equity price risk. The Company’s
practice is to set up a derivative contract with a subsidiary andat the same time enter into a back‑to‑back derivativetransaction with a bank. Contracts with subsidiaries being thus
mirrored (on a one‑to‑one basis) by contracts with banks, theCompany’s net exposure is virtually zero. There are, however, a
few derivative contracts the Company holds in order to hedge
its own market risk exposure.
As the Company’s back‑to‑back hedge contracts are enteredinto with different counterparties, their fair values are reflected
separately in the statement of Financial Position andrecognised as other financial assets and financial liabilities as
disclosed in “– Note 12: Financial assets and liabilities” of theCompany 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.
The Company’s overall financial risk management activities andtheir objectives are described in detail in “– Note 38.1: Financial
Risk Management” of the Consolidated Financial Statements.

Market Risk
Foreign exchange risk — The Company manages a long‒term hedge portfolio with maturities of several years for its
subsidiaries, mainly Airbus, and to a small extent for its joint
ventures or associates. This hedge portfolio covers a large

portion of Airbus’ firm commitments and highly probable
forecast transactions. As explained above, owing to theCompany’s back‑to‑back approach, its own exposure toforeign exchange risk is very limited.

117

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

Interest rate risk — The Company uses an asset‑liability
management approach with the objective to limit its interest
rate risk. It undertakes to match the risk profile of its
interest‑bearing assets with those of its interest‑bearing
liabilities. The remaining net interest rate exposure is managed
through several types of interest rate derivatives, such as
interest rate swaps and interest rate futures contracts, in orderto minimise risks and financial impacts.
The vast majority of related interest rate hedges qualify forhedge accounting, and most of them are accounted for under
the fair value hedge model. As a result, both the fair valuechanges of these derivatives and the portion of the hedged
items’ fair value change that is attributable to the hedged
interest rate risk are recognised in Profit and Loss, where they
offset to the extent the hedge is effective. The Company has
applied the relief introduced by the amendments made to
IFRS 9 in September 2019 on hedge accounting, having theeffect that the IBOR reform should not cause hedge accounting
to terminate.
The Company invests in financial instruments such as overnight
deposits, certificates of deposits, commercial papers, othermoney market instruments and short‑term as well as
medium‑term bonds. For its financial instruments portfolio, theCompany has an Asset Liability Management Committee inplace that meets regularly and aims to limit the interest rate risk
on a fair value basis through a value‑at‑risk approach, fromwhich results a hedge ratio that is however not actively steered.
Commodity price risk — The Company manages a hedge
portfolio for its subsidiaries. Owing to the Company’s
back‑to‑back approach, its own exposure to foreign exchange
risk is very limited.
Equity price risk — The Company is to a small extent invested
in equity securities mainly for operational reasons. Its exposure
to equity price risk is hence limited. Furthermore, it is exposed
under its LTIP to the risk of the Company share price increases.
Sensitivities of market risks — The approach used tomeasure and control market risk exposure within the
Company’s financial instrument portfolio is amongst other key
indicators the value‒at‒risk (“VaR”). For information about VaR
and the approach used by the Company to assess and monitor
sensitivities of market risks please refer to “– Note 38.1:
Financial Risk Management” of the Consolidated Financial
Statements.
The Company is part of the Group risk management process,which is more fully described in “– Note 38.1: Financial Risk
Management” of the Consolidated Financial Statements.

A summary of the VaR position of the Company’s financial instruments portfolio at 31 December 2022 and 31 December 2021 is
as follows:

Total VaR

Equity price
VaR

Currency VaRInterest rate
VaR

Foreign exchange hedges

20

0

19

1

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

194

66

18

175

2

2

0

0

Diversification effect

(29)

0

(34)

(2)

All financial instruments

187

68

3

174

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

Diversification effect

(12)

(2)

(8)

(1)

All financial instruments

68

61

4

51

(In € million)

31 December 2022

Equity swaps

31 December 2021

The increase in the total VaR of €119 million (2021: €68 million) is mainly attributable to the exceptional increase of interest rate
volatility due to Global Central Banks historical rate hikes in 2022. The derivative instruments entered into with externalcounterparties are passed on a 1:1 basis to Airbus entities. As a result, the respective market risks of the external derivative
instruments are offset by corresponding opposite market risks of intragroup transactions.

118

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

Liquidity Risk
The Company’s policy is to maintain sufficient cash and cash
equivalents at any time to meet its present and futurecommitments as they fall due. It manages its liquidity by holding
adequate volumes of liquid assets and maintains a committed
revolving credit facility, in addition to the cash inflow generated byits operating business. The Company continues to keep within its
asset portfolio the focus on low counterparty risk. In addition, it
maintains a set of other funding sources, and accordingly may
raise loans from commercial banks and Development FinanceInstitutions and issue bonds, notes and commercial papers orenter into security lending agreements. Adverse changes in thecapital markets could increase its funding costs and limit its
financial flexibility. For further information relating to Commercial

Paper Programme (see “– Note 16.4: Financing Liabilities” of theCompany Financial Statements).
In particular, Airbus signed on 5 July 2022 a €8 billion
Sustainability Linked Revolving Syndicated Credit Facility in orderto refinance its €6 billion existing facility signed in 2020.
Further, the management of the vast majority of the Company’s
liquidity exposure is centralised by a daily cash concentration
process. This process enables it to manage its liquidity surplus aswell as its liquidity requirements according to the actual needs of
its subsidiaries. In addition, management monitors theCompany’s liquidity reserve as well as the expected cash flows
from its operations.

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

1 year2 years

2 years3 years

3 years4 years

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

Derivative financial liabilities(9,255)(11,631)(3,867)(2,866)(1,690)(1,090)(706)(1,412)(52,513)(58,416)(39,420)(3,887)(2,430)(2,614)(1,562)(8,503)Non‑derivative financial liabilities (1)(41,675)(43,918)(31,559)(211)(1,211)(937)(2,025)(7,975)Derivative financial liabilities(4,818)(6,260)(1,938)(1,678)(1,244)

(728)

(440)

(232)

Total

(46,493)(50,178)(33,497)(1,889)(2,455)(1,665)(2,465)(8,207)(In € million)

4 years- More than
5 years
5 years

31 December 2022

Total
31 December 2021

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

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

maximum credit exposure. The credit quality of financial assets
can be assessed by reference to external credit rating (ifavailable)orinternal
assessmentofcustomers’
creditworthiness by way of internal risk pricing methods.
In 2022, the trade receivables, neither past due nor impaired
amount to €28 million (in 2021: €19 million).
The Company measures loss allowances at an amount that
represents credit losses resulting from default events that are
possible within the next 12 months, unless the credit risk on afinancial instrument has increased significantly since initialrecognition, as described in “– Note 38.7: Impairment losses”
of the Consolidated Financial Statements. In 2022, an amountof €5 million of impairment gain on financial assets is
recognised in Profit and Loss (2021: €-1 million).
For further information relating to gross credit risk andimpairment (see “– Note 17: Information about Financial
Instruments” of the Company Financial Statements).

The booked amount of financial assets represents the119

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

17.2

Carrying Amounts and Fair Values of Financial Instruments

Financial instruments — The Company’s financial assets
mainly consist of cash, short to medium‑term deposits andsecurities. The Company’s financial liabilities include intragroupliabilities, obligations towards financial institutions and issued
bonds. The Company has the same classification andaccounting policies as in the Consolidated Financial
Statements. Please refer to “– Note 38.1: Financial Risk
Management” of the Consolidated Financial Statements formore information.

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

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

Fair value throughprofit or loss

Financial assets and liabilities
at amortised cost
Fair value
through OCI Amortised cost
Fair value

Financial instrument
Total
Book value

Fair value

AssetsOther investments and long‒term financial
assetsEquity investments
Loans
Trade receivables

1,446

0

0

0

1,446

1,446

0

0

2,075

2,194

2,075

2,194

0

0

28

28

28

28

7,829

0

0

0

7,829

7,829

0

0

9,670

9,670

9,670

9,670

Other financial assets
Derivative instruments
Current account Group companies
Securities

0

7,354

0

0

7,354

7,354

Cash and cash equivalents

11,135

1,001

1,146

1,146

13,282

13,282

Total

20,4108,355

12,91913,03841,68441,803

Bonds and commercial papers

0

0

7,903

8,356

7,903

8,356

Internal loans payable

0

0

0

0

0

0

9,255

0

0

0

9,255

9,255

0

0

35,35535,35535,35535,355

0

0

18

18

18

18

9,255

0

43,27643,72952,531

52,984

Liabilities
Financing liabilities

Other financial liabilities
Derivative instruments
Current accounts Group companies
Trade liabilities

Total

120

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

Fair value throughprofit or loss

Financial instrument
Total

Financial assets and liabilities
at amortised cost

Fair value
through OCI Amortised cost

Fair value

Book value

Fair value

AssetsOther investments and long‒term financial
assetsEquity 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

11,23911,23911,23911,239

0

7,721

0

0

7,721

7,721

Other financial assets
Derivative instruments
Current account Group companies
Securities
Cash and cash equivalents

12,075

533

537

537

13,145

13,145

Total

17,964

8,254

13,193

13,222

39,411

39,440Bonds and commercial papers

0010,328

11,145

10,328

11,145Internal loans payable

0

0

591

0

591

0

4,818

0

0

0

4,818

4,818

0

0

30,75630,75630,75630,756

Liabilities
Financing liabilities

Other financial liabilities
Derivative instruments
Current accounts Group companies
Trade liabilities

Total

0

0

39

39

39

39

4,818

0

41,71441,941

46,53346,759(1) 2021 figures restated in accordance with 2022 presentation.

Fair Value Hierarchy
For further details please refer to “– Note 38.2: 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.

121

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

The following table presents the carrying amounts of the financial instruments held at fair value across the three levels of the fairvalue hierarchy as of 31 December 2022 and 2021, respectively:
2022

2021

Level 1

Level 2

Total

Level 1

Level 2

Total

1,446

0

1,446

977

0

977

0

7,829

7,829

0

4,912

4,912

Securities

7,354

0

7,354

7,721

0

7,721

Cash equivalents

11,135

1,001

12,136

12,075533

12,60819,9358,830

28,765

20,773

5,445

26,218(In € million)

Financial assets measured at fair value
Equity instruments
Derivative instruments

Total
Financial liabilities measured at fair value
Derivative instruments

Total

0
0

9,255

9,255

0

4,818

4,818

0

9,255

9,255

0

4,818

4,818

Financial Assets Designated at Fair Value through Profit or Loss
The following types of financial assets held at 31 December 2022 and 2021, respectively, are designated at fair value through profit
or loss:
Nominal amount at initial recognition at
31 December 2022

31 December 2021

Money market funds (accumulating)

11,135

12,075

Total

11,135

12,075(In € million)

Designated at fair value through profit or loss at recognition:

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

17.3

Potential Effect of Set‑Off Rights on Recognised Financial Assets andLiabilities

The Company reports all its financial assets and financial liabilities on a gross basis. With each derivative counterparty there are
master netting agreements in place providing for the immediate close‑out of all outstanding derivative transactions and payment of
the net termination amount in the event a party to the agreement defaults or another defined termination event occurs. The
following tables set out, on a counterparty specific basis, the potential effect of master netting agreements on the Company’s
financial position, separately for financial assets and financial liabilities that were subject to such agreements as of 31 December
2022 and 31 December 2021, respectively:

122

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

Derivative instruments(In € million)Grossamounts
recognised set
Grossoff in theamounts
FinancialrecognisedStatements

Related amounts not set off in
the Statement of Financial
Net amounts
Positionpresented in
the Financial
Financial Cash collateralStatements
instruments
received

Net amount

31 December 2022
Financial assets

7,829

0

7,829

(1,410)0

6,419

Financial liabilities

9,255

0

9,255

(1,410)07,845

Financial assets

1,060

0

1,060

(835)

0

225

Financial liabilities

4,230

0

4,230

(835)

0

3,395

31 December 2021

17.4

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

31 December 2022

42

922

703

1,367

1,475

654

517

4,200

9,880

31 December 2021

0

0

1,000

750

1,850

1,324

750

4,650

10,324(In € million)

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

2 years

3 years

4 years> 4 years

Total

31 December 2022

17

22

14

0

0

53

31 December 2021

18

17

18

10

0

63

(In € million)

17.5

Derivative Financial Instruments and Hedge Accounting Disclosure

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

2022

2021

Carrying values(In € million)

Asset

Carrying values

Liability

Asset

Liability

Foreign currency risk

0

0

0

0

Interest rate risk

0

1,394

190

93

Commodity swap risk

0

0

0

0

Equity swap risk

0

0

0

0

Total

0

1,394

190

93

123

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

17.6

Net Gains or Net Losses

The Company’s net gains or net losses recognised in profit or loss in 2022 and 2021, respectively are as follows:
31 December
2022

2021

Held for trading

(46)

29

Designated on initial recognition

142

318

Financial assets at amortised cost (1)

(90)

268

Financial assets at fair value through OCI

55

20

Financial assets at fair value through profit or loss

464

57

Financial liabilities measured at amortised cost

(111)

(737)

Total

414

(45)

(In € million)

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

17.7

Impairment Losses

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

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

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

Stage 1
12‑month ECLStage 2
Stage 3
Life‑time ECL Credit impaired ECL

At 1 January 2022

7

6

0

13

Change in financial assets and risk parameters

1

(6)

0

(5)

At 31 December 2022

8

0

0

8

Stage 2
Stage 3
Life‑time ECL Credit impaired ECL

Total(In € million)

Stage 1
12‑month ECL

At 1 January 2021

4

94

0

98

Change in financial assets and risk parameters

3

(88)

0

(85)

At 31 December 2021

7

6

0

13

There are no significant impairment on Financial Assets recognised in Profit and Loss in 2022 and 2021 respectively.

124

Total

4. Notes to the IFRS Company Financial Statements
Other Notes

4.6 Other Notes
18.

Auditor Fees

Fees related to professional services rendered by the Company’s auditor, Ernst & Young Accountants LLP, for the fiscal year 2022
were €0.8 million (in 2021: €0.7 million) and the fees related to professional services rendered other EY member firms €1.9 million(in 2021: €1.8 million). These fees relate to audit services only.

19.

Events after the Reporting Date

Regarding the events after the reporting date, please refer to “– Note 41: Events after the Reporting Date” of the Consolidated
Financial Statements.

125

126

Other Supplementary
Information

1275. Other Supplementary Information
Other supplementary Information

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 shall be
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 gain for the period of €435 million as shown in theincome statements for the financial year 2022 is to be added to retained earnings. For the fiscal year 2022, the Company’s Boardof Directors proposes a cash distribution payment of €1.80 per share.

128