2020 Financial Statements

2. Notes to the IFRS Consolidated Financial Statements / 2.7 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 2020 and 31 December 2019: (In € million) 31 December 2020 2019 Hedge reserve Opening balance 2,521 1,473 Foreign exchange contracts (3,161) 3,527 Others (111) 7 Changes in fair values (3,272) 3,534 Foreign exchange contracts (484) (1,894) Others 6 (2) Amount reclassified to profit or loss (matured hedges) (478) (1,896) Foreign exchange contracts 55 (207) Others (4) 0 Amount classified to profit or loss (inefficiency) 51 (207) Tax impact 916 (383) Closing balance (262) 2,521 The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness for cash-flow hedges as of 31 December 2020: (In € million) Carrying values OCI Hedge inefficiency recorded in financial result Amounts reclassified from hedge reserve to profit and loss Asset Liability Changes in values of the hedging instrument Other changes in value of the hedge reserve Foreign currency risk Net forward sales contracts 3,840 (2,530) (6,087) 2,934 55 (483) Foreign exchange options 11 (14) 1 (9) 0 (1) Embedded Derivatives 5 0 (115) 0 0 0 Interest rate risk 0 (1) (2) 0 0 0 Commodity swap risk 14 (27) 6 0 (4) 6 Equity swap risk 0 (16) 0 0 0 0 Total 3,870 (2,588) (6,197) 2,925 51 (478) The following table presents the amounts relating to items designated as hedging instruments and hedge ineffectiveness for cash-flow hedges as of 31 December 2019: (In € million) Carrying values OCI Hedge inefficiency recorded in financial result (1) Amounts reclassified from hedge reserve to profit and loss Asset Liability Changes in values of the hedging instrument Other changes in value of the hedge reserve Foreign currency risk Net forward sales contracts 848 (3,787) 699 2,824 (208) (1,895) Foreign exchange options 19 (58) (1) 2 0 1 Embedded Derivatives 0 (18) 14 0 0 0 Interest rate risk 0 (3) 0 0 0 0 Commodity swap risk 9 (10) (4) 0 0 (2) Equity swap risk 20 0 0 0 0 0 Total 896 (3,876) 707 2,826 (208) (1,896) (1) It includes the financial expense of €112 million on hedge ineffectiveness (see “– Note 12: Revenue and Gross Margin”). 76 Airbus / Financial Statements 2020