Airbus 2015 Annual Report Download - page 246

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 64 l
Notes to the IFRSConsolidatedFinancialStatements
2.7 Capital Structure and Financial Instruments
(In € million) Not exceeding 1 year Over 1 year up to 5years More than 5years Total
Bonds 1,523 550 2,893 4,966
Liabilities to financial institutions 349 1,112 1,001 2,462
Loans 255 163 240 658
Liabilities from finance leases 13 145 230 388
Others(1) 650 1 0 651
31December 2015(2) 2,790 1,971 4,364 9,125
Bonds 11,543 2,374 3,918
Liabilities to financial institutions 22 526 1,225 1,773
Loans 285 243 181 709
Liabilities from finance leases 12 70 116 198
Others(1) 753 0 0 753
31December 2014(2) 1,073 2,382 3,896 7,351
(1) Included in “others” are financing liabilities to joint ventures.
(2) Financing liabilities include non-recourse Airbus debt of € 94million in 2015 (€ 46million in 2014).
The aggregate amounts of financing liabilities maturing during the next five years and thereafter as of 31December 2015 and as
of 31December 2014, are as follows:
(In € million) 2015 2014
1 year 2,790 1,073
2years 228 1,240
3years 835 196
4years 252 723
5years 656 223
Thereafter 4,364 3,896
Total 9,125 7,351
31December
35. Information about Financial Instruments
35.1 Financial Risk Management
By the nature of its activities, the Group is exposed to a variety
of financial risks: (i)market risks, in particular foreign exchange
risk, but also interest rate risk, equity price risk and commodity
price risk, (ii)liquidity risk and (iii)credit risk. The Group’s
overall financial risk management activities focus on mitigating
unpredictable financial market risks and their potential adverse
effects on the Group’s operational and financial performance.
The financial risk management of the Group is generally carried
out by the Corporate Finance department at the Group under
policies approved by the Board of Directors or by the Chief
Financial Officer. The identification, evaluation and hedging of
the financial risks is in the joint responsibility of established
treasury committees and the Group’s Divisions.
The Group uses financial derivatives solely for risk mitigating
purposes (“hedging”) and applies hedge accounting for a
significant portion of its hedging portfolio.
Market Risk
Foreign exchange risk — Foreign exchange risk arises
when future commercial transactions or firm commitments,
recognised monetary assets and liabilities and net investments
in foreign operations are denominated in a currency that is not
the entity’s functional currency.
The Group manages a long-term hedge portfolio with maturities
of several years covering its net exposure to US dollar sales,
mainly from the activities of Airbus. This hedge portfolio covers
a large portion of the Group’s firm commitments and highly
probable forecast transactions.
Most of the Group’s revenue is denominated inUSdollars, while
a major portion of its costs is incurred in euro and to some
extent in other foreign currencies. Consequently, to the extent
that the Group does not use financial instruments to hedge its
exposure resulting from this currency mismatch, its profits will
Financial Statements 2015
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Annual Report 2015 Financial Statements 2015