Universal
Registration
Document
2021

Universal
Registration
Document
Airbus SE is a European public company(Societas Europaea), with its seat in Amsterdam,
the Netherlands, which is listed in France,
Germany and Spain.

they are made, and the Company disclaims
any obligation to update forward-looking
statements, except as may be otherwise requiredby law. The forward-looking statements inthis Registration Document involve known andAs a result of the relabelling to a single Airbus
unknown risks, uncertainties and other factors
brand, Airbus SE together with its subsidiaries
that could cause the Company’s actual futureis referred to as “the Company” and no longer
results, performance and achievements to differ
the Group. The segment formerly known asmaterially from those forecasted or suggested“Airbus Commercial Aircraft” is referred toherein. These include changes in general
as “Airbus”. See “– Management’s Discussion
and Analysis of Financial Condition and Results of economic and business conditions, as well as
the factors described under “Risk Factors” below.
Operations – 2.1.1.2 Reportable Business
Segments”.
In addition to historical information, this Universal
Registration Document (“Registration
Document”) includes forward-looking
statements. The forward-looking statements are
generally identified by the use of forward-looking
words, such as “anticipate”, “believe”, “estimate”,“expect”, “intend”, “plan”, “project”, “predict”, “will”,“should”, “may” or other variations of such terms,
or by discussion of strategy. These statements
relate to the Company’s future prospects,
developments and business strategies and are
based on analyses or forecasts of future results
and estimates of amounts not yet determinable.
These forward-looking statements represent
the view of the Company only as of the dates

2This Registration Document was prepared inaccordance with Annex 1 and 2 of Commission
Delegated Regulation (EU) 2019/980 and has
been filed in English with the Autoriteit Financiële
Markten (the “AFM”) on 6 April 2022 in its
capacity as competent authority under Regulation(EU) 2017/1129 (the “Prospectus Regulation”)
without prior approval pursuant to Article 9of the Prospectus Regulation.
This Registration Document may be used forthe purposes of an offer to the public of securities
or admission of securities to trading on aregulated market if approved by the AFM together
with any amendments, if applicable,
and a securities note and summary approvedin accordance with the Prospectus Regulation.

Risk Factors

1
Information on the Company’s Activities

2
Management’s Discussion and Analysis of Financial
Condition and Results of Operations

3
General Description of the Company and its Share Capital4
Corporate Governance

5
General Information

3

Contents

Universal
Registration
Document
2021

Risk Factors

7

1.
2.
3.
4.

8
12
19
22

Financial Market Risks
Business-Related RisksLegal Risks
Environment, Human Rights, Health & Safety Risks

1

4

Airbus / Registration Document 2021

Information on the Company’s Activities

27

1.1
1.1.1
1.1.2
1.1.3
1.1.4
1.1.5
1.1.6
1.1.7

Presentation of the Company
Overview
Airbus (Commercial Aircraft)
Helicopters
Defence and Space
Investments
Insurance
Legal and Arbitration Proceedings

28
28
32
41
45
52
52
52

1.2
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6
1.2.7
1.2.8
1.2.9
1.2.101.2.11
1.2.12
1.2.13

Non-Financial Information
55
The Company’s Approach to Sustainability
55
Lead the Journey Towards Clean Aerospace
60
Build Our Business on the Foundation of Safety and Quality 72
Respect Human Rights and Foster Inclusion
80
Exemplify Business Integrity
92
Responsible Supply Chain
95
Community Impact
102
ESG Data Board
104
Deployment of Vigilance Plan (Devoir de Vigilance)111
EU Taxonomy Disclosure
112
TCFD Correspondence Table113
GRI Index
114
SASB Correspondence Table
118

1.3

Other Corporate Activities

119

1.4

Recent Developments

127

2Management’s Discussion and Analysisof Financial Condition and Results of Operations 129
2.1
2.1.1
2.1.2

2.1.6

Operating and Financial Review
130
Overview
131
Significant Accounting Considerations,
Policies and Estimates134
Performance Measures
135
Results of Operations
139
Changes in Total Equity(Including Non-Controlling Interests)
143
Liquidity and Capital Resources
144

2.2

Financial Statements

148

2.3

Statutory Auditor Fees

148

2.4

Information Regarding the Statutory Auditors

148

2.1.3
2.1.4
2.1.5

3
General Description of the Company
and its Share Capital151
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.1.6
3.1.7
3.1.8
3.1.9
3.1.103.1.11
3.1.12
3.1.13
3.2
3.2.1
3.2.2
3.2.3

General Description of the Company
152
Commercial and Corporate Names,
Seat and Registered Office152
Legal Form
152
Governing Laws and Disclosures
152
Date of Incorporation and Duration of the Company
153
Objects of the Company
154
Commercial and Companies Registry
154
Inspection of Corporate Documents
154
Financial Year
154
Allocation and Distribution of Income
154
General Meetings
155
Disclosure of Holdings
156
Mandatory Disposal
157
Mandatory Offers
158

3.2.5

General Description of the Share Capital
159
Issued Share Capital
159
Authorised Share Capital
159
Modification of Share Capital or Rights Attachedto the Shares159
Securities Granting Access to the Company’s
Share Capital
160
Changes in the Issued Share Capital
160

3.3
3.3.1
3.3.2
3.3.3
3.3.4

Shareholdings and Voting Rights
Shareholding Structure at the End of 2021
Relationships with Principal Shareholders
Form of Shares
Changes in the Shareholding of the Company

3.2.4

161
161
162
165
165

3.3.5
3.3.6
3.3.7

Persons Exercising Control over the Company
Simplified Group Structure Chart
Purchase by the Company of its Own Shares

165
165
167

3.4
3.4.1
3.4.2
3.4.3
3.4.4

Dividends
Dividends and Cash Distributions Paid
Dividend Policy of the Company
Unclaimed Dividends
Taxation

169
169
169
169
169

4
Corporate Governance

173

4.1
4.1.1
4.1.2
4.1.3
4.1.4

Management and Control
174
Corporate Governance Arrangements
174
Dutch Corporate Governance Code, “Comply or Explain” 197
Enterprise Risk Management System
198
Internal Audit
200

4.2

4.2.3

Interests of Directors and Principal
Executive Officers201
Remuneration Policy201
Long-Term Incentives Granted to the Chief
Executive Officer
214
Related Party Transactions
215

4.3
4.3.1
4.3.2
4.3.3

Employee Success Sharing and Incentive Plans
Employee Success Sharing and Incentive Agreements
Employee Share Ownership PlansLong-Term Incentive Plans

4.2.1
4.2.2

215
215
215
216

5
General Information

223

5.1

Entity Responsible for
the Universal Registration Document224

5.2

Statement of the Entity Responsible for
the Universal Registration Document

224

5.3

Information Policy

224

5.4

Undertakings of the Company regarding
Information225

5.5

Significant Changes

225

5.6

Statement on Approval

225

Airbus / Registration Document 2021

5

6

Airbus / Registration Document 2021

Risk Factors
1.
2.
3.
4.

Financial Market Risks
8
Business-Related Risks12
Legal Risks
19
Environment, Human Rights, Health & Safety Risks 22

Airbus / Registration Document 2021

7

Risk Factors /1 Financial Market Risks

The Company is subject to the risks and uncertainties described below that may materially affectits business, results of operations and financial condition. These are not the only risks the Company
faces. Additional risks and uncertainties not presently known to the Company, or that it currently
considers immaterial may also impair its business and operations.
Although a certain degree of risk is inherent in the Company’s business (as described in the risk
factors mentioned in this section), the Company endeavours to minimise risk to the extent reasonably
possible. To achieve its strategy, the Company is prepared to take modest or low event risks to provide
sufficient predictability on profitability and cash flow given the necessity to stay competitive, invest
in R&D and manage the diversified business portfolio in a world of uncertain market and economic
conditions. Due to the importance of programmes and operations for the Company, a particularfocus is put on the operational dimension of risk identification and management. Within the area oflegal and compliance risks, the Company seeks to ensure that its business practices conform toapplicable laws, regulations and ethical business principles, while developing a culture of integrity.
Regarding financial risks, our risk approach can be qualified as prudent and the Company aims tominimise the downside risk through an appropriate liquidity buffer, moderate financial leverage andthe use of hedging derivatives and other insurance products.

1.

Financial Market Risks

Global Economic Conditions
The Company’s business, resultsof operations and financial condition
are materially affected by global
economic conditions.
Market disruptions and significant economic downturns may
develop quickly due to, among other things, crises affecting
credit or liquidity markets, regional or global recessions, sharp
fluctuations in commodity prices (including oil), currency
exchange rates or interest rates, inflation or deflation, sovereign
debt and bank debt rating downgrades, restructurings ordefaults, or adverse geopolitical events (including Russia’s
invasion of Ukraine and rising military tensions around the world
and in particular within Europe’s borders, the impact of Brexit
and global policy including in the United States (“US”), European
Union, Russia and China) or global pandemic diseases such as
COVID-19. The previous US administration introduced greater
uncertainty with respect to US tax and trade policies, tariffs andgovernment regulations affecting trade between the US andother countries. Such measures affected and may continue toaffect countries where our customers and suppliers are locatedor where the Company has an operational presence or to which
its financing activities are linked. See “– Business-Related Risks– COVID-19 Risks”, “– Business-Related Risks – Ukraine Crisis”
and “– Business-Related Risks – Availability of Government andother Sources of Financing”.

8

Airbus / Registration Document 2021

The Company’s global presence includes France, Germany, Spainand the UK, fully-owned subsidiaries in the US, China, Japan,
India and in the Middle East, and spare parts centres in Hamburg,Frankfurt, Washington, Beijing, Dubai and Singapore. At the endof 2021, the Company had engineering and training centres inToulouse, Miami, Mexico, Wichita, Hamburg, Bangalore, Beijing
and Singapore, as well as an engineering centre in Russia. There arealso hubs and field service stations around the world. The Company
also relies on industrial co-operation and partnerships with major
companies and a wide network of suppliers. This global presenceentails the risk of being affected by weak market and economic
conditions in particular in Europe, the US and Asia where it
manufactures and to which it sells the majority of its products.
As of 31 December 2021, the Company’s workforce amounted
to 126,495 employees of which over 15,000 were employedoutside our core countries. In terms of nationalities, 35.4% of theCompany’s employees are from France, 31.5% from Germany,
7.7% from the UK and 10.3% from Spain. The remaining 15.1%
are employees from a total of 134 other countries. In total, 89.1%
of the Company’s active workforce is located in Europe on morethan 100 sites.
It is a priority to ensure that the Company can attract, develop
and retain a world-class competent, motivated and flexible
workforce, which fits current and future business requirementsin each of the countries in which we have a presence.
A change in economic conditions in any of the geographiesin which we have significant numbers of employees or key
employees may therefore impact our ability to compete effectively
for employees in such countries.

Risk Factors /1 Financial Market Risks

At the end of 2020, approximately 21,000 suppliers from morethan 80 countries supply parts, components, systems andservices to the Company. In 2020, the overall external sourcing
volume of the Company was valued at around € 41 billion.
The Company requires its suppliers’ and subcontractors’
services in order to deliver our products and generate revenue
and profit. Therefore financial instability in any part of the worldthat would affect our suppliers or subcontractors, including
financial conditions resulting in their inability to obtain credit
or even in their insolvency, could impact the Company’s ability
to meet its customer obligations in a satisfactory and timely
manner. In addition, financial instability affecting suppliers
or subcontractors could impact such parties’ ability to meettheir obligations under risk sharing partnership agreements
entered into with the Company. The COVID-19 pandemic andthe resulting health and economic crisis has increased theCompany’s exposure to supply chain risk.
The behaviour of our customers and by extension, the demand
for and supply of, the Company’s products and services has been
and may continue to be materially affected by global economic
conditions. Historically, the Company has experienced that orderintake for commercial aircraft has shown cyclical trends, due
in part to changes in passenger demand for air travel and the
air cargo share of freight activity, which are in turn driven by arange of economic variables including gross domestic product(“GDP”) growth and private consumption levels.
A further downturn in economic factors driven by geopoliticalevents or by new variants and successive waves of the COVID-19
pandemic and the resulting health and/or economic crisis andthe related drop in air travel in a large part of the world driving
our commercial airline business, could lead to protracted weak
demand for our commercial aircraft. The significant growth of ourcommercial aircraft business relative to the Company’s defence,
space and government activities has diluted the latter’s ability toserve as an effective tool to counter commercial cycles.
Demand for military and parapublic products may be further
affected by governmental budget constraints caused byeconomic pressure and COVID-19 measures.
Therefore protracted weak global economic conditions could
directly result in:–– financial distress of airlines and lessors, and potential
bankruptcies around the world;–– requests by customers to postpone or cancel existing orders
for aircraft (including helicopters) or decisions by customers toreview their order intake strategy due to, among other things,
lack of adequate credit supply from the market to financeaircraft purchases or increases in operating costs or weaklevels of passenger demand for air travel and cargo activity
more generally, which could negatively impact the Company’s
results of operations;–– variations in public spending for defence, homeland security
and space activities, which may lead to termination or reductionof future funding or cancellations or delays impacting existing
contracts which could negatively impact the Company’s
results of operations; and–– an increase in the amount of sales financing that the Company
is requested to provide to its customers to support aircraft
deliveries typically secured over the underlying aircraft andbearing exposure to the customer credit risk. See “– Risk Factors– Financial Market Risks – Sales Financing Arrangements”.
In addition, in the commercial aircraft industry it is the industry
standard to include revision clauses in sales and suppliercontracts due to the long-terms of such contracts. Such revision
clauses can be based on one or multiple indices and therefore,
can evolve due to changes in economic measures on whichsuch indices are based, thereby potentially negatively impacting
the Company’s results.
The Company generally finances its manufacturing activities
and product development programmes, and in particular thedevelopment of new commercial aircraft, through a combination ofCash Flows generated by operating activities, customer advances,
European governments’ refundable advances and risk-sharing
partnerships with subcontractors. In addition, the Company’s
military activities benefit from government-financed research anddevelopment contracts. If necessary, the Company may raise
funds in the capital markets. Weak economic circumstancesleading to liquidity constraints or reduced availability of financefor the Company’s customers, suppliers, European and othergovernments, and other risk sharing partners may affect theCompany’s ability to finance its product development programmes
and raise funds in the capital markets.
The Company’s financial results could also be negatively affected
depending on gains or losses realised on the sale or exchangeof financial instruments; impairment charges resulting fromrevaluations of debt and equity securities and other investments;
interest rates; cash balances; and changes in fair value ofderivative instruments. Increased volatility in the financial markets
and overall economic uncertainty would increase the risk of theactual amounts realised in the future on the Company’s financial
instruments differing significantly from the fair values currently
assigned to them.
Although the potential negative impact of global economic
conditions has been thoroughly assessed, the consequences
thereof could have unforeseen material effects on the Company’sbusiness, results of operations and financial condition, and inparticular if these were to impact the Company’s commercial
aviation activities or otherwise impact its access to financing.

BrexitOn 29 March 2017, the UK triggered Article 50 of the Lisbon
Treaty, the mechanism to leave the European Union (“Brexit”).
The UK left the EU in an orderly manner on 31 January 2020
under the terms of the Withdrawal Agreement.
Brexit could lead to a reduced degree of political alignment
between the Airbus home nations of UK, France, Germany andSpain, and more widely with EU institutions, now that the UK is
no longer a member of the EU.
The risk of fragmentation could also impact the availability of
public financing sources for our sector. This could for instancematerialise in relation to COVID-19 crisis recovery plans,investment necessary to support our industry’s climate transition,
financing of defence and security activities, or of research anddevelopment.
The Trade and Cooperation Agreement (“TCA”) concluded
between the EU and the UK provides an adequate basis tosupport the Company’s and its supply chain industrial operations.
Nevertheless, the existence of divergences between the EU
and UK’s positions on certain significant issues, for instancein relation to Northern Irish border controls, migration flows
or regulatory alignment, could trigger tensions which, in turn,
could impact the implementation of the TCA and the associatedbenefits for our sector.

Airbus / Registration Document 2021

9

Risk Factors /1 Financial Market Risks

Foreign Currency Exposure
In 2021, more than 70% of the Company’s revenues aredenominated in US dollars, with approximately 60% of suchcurrency exposure “naturally hedged” by US dollar-denominatedcosts. The remainder of costs are incurred primarily in euros.
Consequently, to the extent that the Company does not use
financial instruments to hedge its net current and future exchange
rate exposure from the time of a customer order to the time ofdelivery, its profits will be affected by market changes in theexchange rate of the US dollar against these currencies.
There are complexities inherent in determining whether andwhen foreign currency exposure of the Company will materialise,in particular given the possibility of unpredictable revenue
variations arising from order cancellations, postponements ordelivery delays. The Company may also have difficulty in fully
implementing its hedging strategy if its hedging counterparties
are unwilling to increase derivatives risk limits with the Company,
and is exposed to the risk of non-performance or default by
these hedging counterparties. The exchange rates at which theCompany is able to hedge its foreign currency exposure may also
deteriorate, as the euro could appreciate against the US dollar
for some time, as has been the case in the past and as higher
capital requirements for banks result in higher credit charges foruncollateralised derivatives. Accordingly, the Company’s foreign
currency hedging strategy may not protect it from significant
changes in the exchange rate of the US dollar to the euro andthe pound sterling, in particular over the long-term, which could
have a negative effect on its financial condition and results ofoperations. In addition, the portion of the Company’s US dollardenominated revenues that is not hedged in accordance with

the Company’s hedging strategy will be exposed to fluctuations
in exchange rates, which may be significant. As of 31 December
2021, the total hedge portfolio with maturities up to 2027
amounts to US$ 88.3 billion and covers a major portion of theforeign exchange exposure expected over the period of theoperative planning.
Furthermore, the Company is exposed to certain other pricerisks such as interest rate risks, changes in commodity prices
and in the price of its own stocks. Adverse movements of theseprices may jeopardise the Company’s profitability if not hedged.
Currency exchange rate fluctuations in currencies other than the
US dollar in which the Company incurs its principal manufacturing
expenses (mainly the euro) may affect the ability of the Company
to compete with competitors whose costs are incurred in othercurrencies. This is particularly true with respect to fluctuations
relative to the US dollar, as many of the Company’s products
and those of its competitors (e.g., in the defence export market)
are priced in US dollars. The Company’s ability to competewith competitors may be eroded to the extent that any of theCompany’s principal currencies appreciates in value against the
principal currencies of such competitors.
The Company’s consolidated revenues, costs, assets andliabilities denominated in currencies other than the euro aretranslated into the euro for the purposes of compiling its financial
statements. Changes in the value of these currencies relative
to the euro will, therefore, have an effect on the euro value of
the Company’s reported revenues, costs, EBIT, other financial
results, assets, liabilities and equity.

Sales Financing Arrangements
In support of sales, the Company may agree, case by case,to participate in the financing of selected customers. Over thelast three years on average (2019 to 2021), the average numberof aircraft delivered in respect of which financing support has
been provided by Airbus amounted to approximately 1% of thenumber of deliveries over the same period.
The risks arising from the Company’s sales financing activities
may be classified into two categories: (i) credit risk, which
relates to the customer’s ability to perform its obligations undera financing arrangement, and (ii) aircraft value risk, whichprimarily relates to unexpected decreases in the future value ofaircraft. Defaults by its customers or significant decreases in thevalue of the financed aircraft in the resale market may materiallyadversely affect the Company’s business, results of operations
and financial condition.
The Company’s sales financing arrangements expose it toresidual aircraft value risk, because it generally retains security
interests in aircraft for the purpose of securing customers’
performance of their financial obligations to the Company, and/or because it may guarantee a portion of the value of certain
aircraft at certain anniversaries from the date of their delivery
to customers. Under adverse market conditions, the market
for used aircraft could become illiquid and the market valueof used aircraft could significantly decrease below projected10

Airbus / Registration Document 2021

amounts. In the event of a financing customer default at a time
when the market value for a used aircraft has unexpectedly
decreased, the Company would be exposed to the difference
between the outstanding loan amount and the market valueof the aircraft, net of ancillary costs (such as maintenance andremarketing costs, etc.). Similarly, if an unexpected decrease in
the market value of a given aircraft coincided with the exercise
window date of an asset value guarantee with respect to thataircraft, the Company would be exposed to losing as much as
the difference between the market value of such aircraft and theguaranteed amount, though such amounts are usually capped.
Through the Airbus Asset Management department or as aresult of past financing transactions, the Company is the ownerof used aircraft, exposing it directly to fluctuations in the market
value of these used aircraft.
In addition, the Company has backstop commitments to provide
financing related to orders on the Company’s and ATR’s backlog.
The Company’s sales financing exposure could rise in line with
future sales growth depending on the agreement reached withcustomers. The Company remains exposed to the risk of defaults
by its customers or significant decreases in the value of thefinanced aircraft in the resale market, which may have a negative
effect on its future financial condition and results of operations.

Risk Factors /1 Financial Market Risks

Liquidity
The Company is exposed to liquidity risk in case of funding needs
during a market disruption situation. The liquidity risk can arise
when money markets and debt capital markets are closed for
new issuances for a period of time. In order to mitigate this risk,
the Company maintains:–– significant amounts of highly liquid cash on-balance sheet;–– undrawn committed credit facilities;–– diversified Euro funding programmes (such as a € 12 billion
euro medium-term note (“EMTN”) programme eligible to the
Corporate Sector Purchase Programme of the European
Central Bank (“ECB”), a € 11 billion Negotiable European
Commercial Paper programme eligible to the Pandemic
Emergency Purchase Programme of the ECB, and a € 4 billion
Euro Commercial Paper programme); and–– access to USD funding (through a US$ 3 billion US Commercial
Paper programme, and a 144A US dollar bond market).

On 26 February 2021, the Company exercised the firstextension option of the maturity of its undrawn New Credit
Facility (implemented in 2020 for € 15 billion in response to the
COVID-19 pandemic and reduced to € 6.2 billion after take-outs)
from 30 March 2021 to 30 September 2021.
In August 2021, given the increase of its net cash position andits robust liquidity, the Company decided not to exercise thesecond extension option of the € 6.2 billion New Credit Facility
that matured on 30 September 2021. In the meantime, theCompany extended the maturity of our € 6 billion Revolving
Syndicated Credit Facility to 21 October 2024.
Going forward, the Company will continue to adopt a prudent
approach when it comes to managing its liquidity with theobjective of maintaining its robust credit rating.

Counterparty Credit
In addition to the credit risk relating to sales financing as discussed
above, the Company is exposed to credit risk to the extent of
non-performance by its counterparties for financial instruments,
such as hedging instruments (US$ 88.3 billion nominal value at
31 December 2021) and cash investments (US$ 20.65 billion
nominal value at 31 December 2021). However, the Company
has policies in place to avoid concentrations of credit risk andto ensure that credit risk exposure is limited.
Counterparties for transactions in cash, cash equivalents andsecurities as well as for derivative transactions are limited tohighly rated financial institutions, corporates or sovereigns.

The Company’s credit limit system assigns maximum exposurelines to such counterparties, based on a minimum credit rating
threshold as published by Standard & Poor’s and Moody’s. Ifneither is present, Fitch ratings are used. Besides the credit
rating, the limit system also takes into account fundamental
counterparty data, as well as sector and maturity allocations
and further qualitative and quantitative criteria such as credit risk
indicators. The credit exposure of the Company is reviewed ona regular basis and the respective limits are regularly monitored
and updated.

As of 31 December 2021 the credit exposure had been estimated as follows (in € million)(1):
Source of risk

Exposure

Unexpected Loss Contribution

Banks

3,074

43

Corporates

3,917

90

Sovereign issuers

1,326

12

Money market funds

12,32821

Total

20,645

166(1) Not audited.

The Company also seeks to maintain a certain level ofdiversification in its portfolio between individual counterparties aswell as between financial institutions, corporates and sovereignsin order to avoid an increased concentration of credit risk on only
a few counterparties.
However, there can be no assurance that the Company will not
lose the benefit of certain derivatives or cash investments incase of a systemic market disruption. In such circumstances, thevalue and liquidity of these financial instruments could decline
and result in a significant impairment, which may in turn have anegative effect on the Company’s financial condition and resultsof operations.

Moreover, the progressive implementation of new financial
regulations and adjustments to existing regulations will have an
impact on the business model of banks (for example, the split
between investment banking and commercial banking activities)
and on the capital structure and cost of such banks’ activities
in relation to over-the-counter derivatives, and therefore on thefunding consequences of central clearing and collateralisation ofover-the-counter derivatives for corporations like the Company.
This may ultimately increase the cost and reduce the liquidityof the Company’s long-term hedges, for example, as banks
seek to either pass-on the additional costs to their corporate
counterparties or withdraw from low-profit businesses altogether.

Airbus / Registration Document 2021

11

Risk Factors /2 Business-Related Risks

Pension Commitments
The Company participates in several pension plans for both
executive as well as non-executive employees, some of which
are underfunded. As of 31 December 2021, the provision for
retirement plans and similar obligations amounted to € 7.1 billion.
For information related to these plans, please refer to the “Notes
to the IFRS Consolidated Financial Statements – Note 31: Postemployment Benefits”. Although the Company has recorded a
provision in its balance sheet for its share of the underfunding
based on current estimates, there can be no assurance thatthese estimates will not be revised upward in the future, leading
the Company to record additional provisions in respect of suchplans.

2.

Necessary adjustments of such provisions include but are notlimited to (i) the discount factor (dependent in part on interest rates)
and the inflation rate applied to calculate the net present value ofthe pension liabilities, (ii) the performance of the asset classes
which are represented in the pension assets, and (iii) behaviouralassumptions regarding beneficiaries, and (iv) additional cash
injections contributed by the Company from time to time to thepension assets. The Company has taken measures to reduce
potential losses on the pension assets and to better matchthe characteristics of the pension liabilities with those of thepension assets as a long-term objective. Nevertheless, any
required additional provisions would have a negative effect on
the Company’s total equity (net of deferred tax), which couldin turn have a negative effect on its future financial condition.

Business-Related Risks

COVID-19 Risks
Over the last two years, new variants and the successive waves of
the COVID-19 pandemic, the resulting health and economic crisis
and actions taken in response to the spread of the pandemic,
including government measures, lockdowns, travel limitations
and restrictions, have resulted in significant disruption to theCompany’s business, operations and supply chain.
The aerospace industry, the financial health of operators, airlines,
lessors and suppliers, commercial aircraft market, demand for air
travel and commercial air traffic have been severely impacted by
the COVID-19 pandemic and the resulting health and economiccrisis. As a result, airlines have reduced capacity, grounded
portions of their fleets, sought to implement measures to reduce
cash spending and secure liquidity. Some airlines are also
seeking arrangements with creditors, restructuring or applying
for bankruptcy or insolvency protection, which may have further
consequences for the Company and its order book as well asother consequences resulting from the related proceedings. The
Company will continue to face additional risks and uncertainties
resulting from future consequences of the health and economiccrisis on operators, airlines, lessors, suppliers and other actors
in the air transport industry. See also “– Commercial Aircraft andHelicopter Market Factors” below.
Over the last two years, a number of measures have beentaken by the Company to implement stringent health andsafety procedures while taking account of stock levels andproduction lead-times. The COVID-19 crisis may lead to further
disruptions to the Company’s internal operations and to its ability
to deliver products and services. See also “– Dependence on
Key Suppliers and Subcontractors” below.
In addition to its impact on the financial viability of operators,
airlines and lessors and the reduction of commercial air traffic,
lockdowns, travel limitations and restrictions around the world
have posed logistical challenges and may continue to cause
disruptions to the Company’s business, its operations and supply

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chain. These measures have and may continue to adversely
affect the Company’s ability to deliver products and services aswell as customers’ ability to take delivery of aircraft.
The Company has been adversely affected by weak market andeconomic conditions in markets around the world. Protracted
weaker market and economic conditions and their knock-on
effects have and could continue to result in (i) additional requests
by customers to postpone delivery or cancel existing orders
for aircraft (including helicopters) or other products including
services, (ii) decisions by customers to review their fleet strategy,(iii) weak levels of passenger demand for air travel and cargo
activity more generally, (iv) a sustained reduction in the volume of
air travel for business purposes, and (v) prolonged or additional
travel limitations and restrictions, which could negatively impact
the Company’s results of operations.
In 2021, the Company delivered 611 commercial aircraft, 8%
more than in 2020 (compared to 566 commercial aircraftin 2020, which was 34% fewer than in 2019, in line with theCompany’s adaptation plan). This reflects customer requests
to defer deliveries as well as other factors related to theongoing COVID-19 crisis. In 2021, the Company recorded 264
cancellations (compared to 115 cancellations in 2020).
On 21 January 2021, the Company announced its decision
to update its production rates in response to the market
environment.
On 27 May 2021, the Company provided suppliers with an
update of its production plans based on its expectation thatthe commercial aircraft market may recover to pre-COVID levels
between 2023 and 2025, led by the single-aisle segment. In
anticipation of a continued recovering market, the Company
confirmed an average A320 Family production rate of 45
aircraft per month in the fourth quarter of 2021 and called on
suppliers to prepare for the future by securing a firm rate of 64
by the second quarter of 2023. The A220 monthly production

Risk Factors /2 Business-Related Risks

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

The Company is monitoring the evolution of the COVID-19 crisis
and will continue to evaluate further impacts and additional
measures going forward while taking into account the latest
industry outlook.

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

Although the full impact of the COVID-19 pandemic and theresulting health and economic crisis cannot reasonably beassessed at this time given its uncertain duration and extent, theCompany’s business, its operations and supply chain are likely
to be further disrupted by new variants and successive waves ofthe pandemic, the uncertainty it creates and the resulting healthand economic crisis.

The Company continues to monitor the market closely. With theserevised rates, the Company preserves its ability to meet customer
demand while protecting its ability to further adapt as the global
market evolves. The Company expects the commercial aircraft
market to return to pre-COVID levels by 2023 to 2025.

The Company’s business, results of operations and financial
condition have been and will continue to be materially affectedby the COVID-19 pandemic, and the Company continues to facesignificant risks and uncertainties related to new variants andsuccessive waves of the COVID-19 pandemic and its resulting
health and economic crisis.
For further details, please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 2: Impact of the
COVID-19 Pandemic”.

Ukraine Crisis
Russia’s invasion of Ukraine on 24 February 2022 and the resulting
export control restrictions and international sanctions against
Russia, Belarus and certain Russian entities and individuals haveresulted in disruption to the Company’s business, 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 that are
relevant to the Company’s business, the Company announced
in March 2022 it has suspended the delivery of aircraft andsupport 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 and sanctions to its
facilities and operations in Russia (including the Airbus Russia
affiliate, Airbus Engineering Centre (ECAR), representation officein Moscow and the Space Division’s two joint ventures in Russia,
Energia Satellite Technologies and Synertech). See “Export
Control Laws and Regulations” below.
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 being reviewed.
The crisis has also exposed the Company to the risk of Soyuz
business interruption that will have an impact on future launches
and may have financial consequences.
The Company has activated a crisis management cell in response
to Russia’s invasion of Ukraine and is monitoring the situation andevaluating the impacts to cyber security, operations, production,deliveries, logistics and transport as well as impacts on materials
and components sourcing, inflation, oil and energy prices. See
also “– Dependence on Key Suppliers and Subcontractors” and“Industrial System Adaptation” below.
Although the full impact cannot reasonably be assessed at thetime of this report, the Company’s business, results of operations
and financial condition may be materially affected by the direct
and indirect impacts of Russia’s invasion of Ukraine and theresulting export control restrictions and international sanctions.

Commercial Aircraft and Helicopter Market Factors
Historically, the Company has experienced that order intake
for commercial aircraft has shown cyclical trends, due inpart to changes in passenger demand for air travel and the
air cargo share of freight activity, which are in turn driven by
a range of economic variables, such as GDP growth, private
consumption levels or working age population size. Other
factors, however, play an important role in determining themarket for commercial aircraft, such as (i) the average age andtechnical obsolescence of the fleet relative to new aircraft; (ii) the

number and characteristics of aircraft taken out of service andparked pending potential return into service; (iii) passenger andfreight load factors; (iv) airline pricing policies and resultant
yields; (v) airline financial health; (vi) the availability of third party
financing for aircraft purchases; (vii) evolution of fuel price;(viii) regulatory environment; (ix) environmental constraints
imposed upon aircraft operations, such as the Carbon Offsetting
and Reduction Scheme for International Aviation (“CORSIA”),
carbon standards and other environmental taxes; and (x) market

Airbus / Registration Document 2021

13

Risk Factors /2 Business-Related Risks

evolutionary factors such as the volume of business-related travelor the growth of low-cost passenger airline business models or
the impact of e-commerce on air cargo volumes or consolidationof airlines. The COVID-19 pandemic and resulting health andeconomic crisis can amplify the impact of these factors, withthe volatility observed during 2020 and 2021.
The factors described above may have a material impact on thecommercial aircraft industry and therefore, on the Company’s
financial condition and results of operations. In 2021, thecommercial aircraft business segment of Airbus recorded total
revenues of € 36.1 billion – representing 69% of the Company’s
revenues. See “– Information on the Company’s Activities – 1.1.2
Airbus (Commercial Aircraft)”. During the COVID-19 pandemic,
the Company observed that the downturn in its commercial
aircraft business was partially mitigated by its defence, spaceand government activities. Such a cyclical pattern had alreadybeen observed in the past but historically diminished, due to thesignificant growth of the Company’s commercial aircraft business
relative to its other activities, until the global pandemic arrived.
The commercial helicopter market in which the Company
operates has shown cyclical trends and could also be influenced
by factors listed above. The civil & parapublic market has shown
signs of recovery in 2021, notably in the intermediate single
engine helicopter segment led by the private & business aviation
market. However, the offshore oil & gas market remains soft withlow level of investments in the acquisition of new platforms. Flight
hours have decreased slightly due to the pandemic however
Airbus Helicopters has increased revenues thanks to the wideranging portfolio of service solutions.

Cyber Security Risks
The Company’s extensive information and communications
systems, industrial environment, products and services are
exposed to cyber security risks. Cyber security threats are
rapidly changing and scenarios of attacks are becoming moresophisticated.
The Company is exposed to a number of different cyber security
risks, directly or through its supply chain, arising from actions
that may be intentional and hostile, accidental or negligent.
Some of the objectives of an attacker are espionage, influence,
obstacle to functioning or lucrative. The main cyber security
risks for the Company are intrusion in systems leading to dataleakage, attacks impacting the resilience of industrial systems
and compromising products and services.
All of the above mentioned risks are heightened in the context
of the increasingly common use of digital solutions by theCompany (including greater use of cloud services, mobile
devices, “internet of things”), increasingly capable adversaries
and integration with the extended enterprise. Risks related to theCompany’s industrial control systems, manufacturing processes
and products are growing with the increase of interconnectivity

and digitalisation. Moreover, a main challenge is to maintain an
appropriate level of security of complex and legacy industrial
systems to face attacks from hackers, who are improving theirtechniques and skills at incredible speed.
Finally, the Company is exposed to reputational damage anddestabilisation from the growing volume of false and malicious
information injected into media and social networks.
The Company continues to make significant efforts to prevent
such risks from materialising. Targeted investments will reduce
but not eradicate likelihood and impact through strengthening
the business cyber resilience.
The materialisation of one or several of such risks could lead tosevere damage including but not limited to significant financial
loss, need for additional investment, contractual or reputational
performance degradation, loss of intellectual property, loss ofbusiness data and information, operational business degradation
or disruptions, and product or services malfunctions. Lossof personal data may result in administrative, civil or criminal
liabilities including significant fines and penalties.

Physical Security, Terrorism, Pandemics and Other Catastrophic Events
Past terrorist attacks, public health crises and the spread of
disease (such as the global COVID-19 pandemic or the H1N1 flu
pandemic or the Ebola epidemic in 2013-2016) have demonstrated
that such events may negatively affect public perception of air
travel safety, which may in turn reduce demand for air travel
and commercial aircraft. The outbreak of wars, riots or politicalunrest or uncertainties may also affect the willingness of the
public to travel by air. Furthermore, major aircraft accidents may
have a negative effect on the public’s or regulators’ perceptionof the safety of a given class of aircraft, a given airline, form ofdesign or air traffic management. Flight activity restart requires
particular focus on safety aspects such as aircraft destorage
and pilot training. As a result of such factors, the aeronautic
industry may be confronted with additional sudden or prolonged
reduced demand for air transport and be compelled to takeadditional costly security and safety measures. The Company
may, therefore, suffer from a decline in demand for all or certain

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types of its aircraft or other products, and the Company’s
customers may postpone delivery or cancel orders.
In addition to affecting demand for its products, catastrophic
events could disrupt the Company’s internal operations or
its ability to deliver products and services. Disruptions may
be related to threats to infrastructure, personnel security andphysical security and may arise from terrorism, conflict and civil
unrests, malicious acts, natural disasters, fire, damaging weather,and other types of incidents such as drone air traffic disruption.
Effects of such events may be amplified if they happen on Single
Points Of Failure (SPOFs) for which dedicated identificationand mitigations are monitored. Any resulting impact on the
Company’s production, services or information systems could
have a significant adverse effect on the Company’s operations,financial condition and results of operations as well as on its
reputation and on its products and services.

Risk Factors /2 Business-Related Risks

Dependence on Key Suppliers and Subcontractors
The Company is dependent on numerous key suppliers andsubcontractors to provide it with the raw materials, parts,
assemblies, systems, equipment and services that it needs tomanufacture its products.
The Company relies upon the good performance and financial
health of its suppliers and subcontractors to meet the obligations
defined under their contracts. A supplier’s performance andhealth may be negatively impacted by a variety of topics including:the current COVID-19 pandemic and its resulting economic
impact; loss of skilled resources as a result of workforce
reduction and difficulties to re-staff due to market employment
tensions; need for working capital increase while state/bankloans obtained to weather through the crisis have reachedmaturity; difficulty gaining access to the needed material andcomponents, including semiconductors, in the needed quantity
and time frame and at competitive conditions as well as transportand logistic means availability; cyber security threats; geopoliticalunrest; export controls evolving regulations and embargoes; andenvironmental issues.

In the context described above, changes to the Company’s
production or development schedules may impact suppliers
so that they initiate claims under their respective contracts forfinancial compensation or do not fulfil their on time and on quality
delivery commitments. This may have a negative effect on thefinancial condition and results of operations of the Company.
As the Company’s global sourcing footprint extends, some
suppliers (or their sub-tier suppliers) may have production
facilities located in countries that are exposed to socio-politicalunrest or natural disasters which could interrupt deliveries.
This may have a negative effect on the financial condition andresults of operations of the Company.
The Company cannot fully protect itself from non-performanceof a supplier, which could disrupt production and in turn may
have a negative effect on the financial condition and results ofoperations of the Company. The Company has implemented arobust governance to prevent, anticipate and monitor supply chain
disruption risks and/or ensure efficient management of issues.

Industrial System Adaptation
In early 2020, in response to the COVID-19 crisis, the Company
adapted the production rates significantly (-40%). At the
beginning of 2021, air traffic started to recover, especially incertain domestic and regional markets, and the Company
announced in May 2021 an industrial ramp-up trajectory thathas been confirmed at the end of Q3 2021. The Company willcontinue to monitor and adapt according to traffic evolutions andmarket situation and expectations; hence it is actively working
and monitoring the ramp-up across the complete value chain
for Single Aisle commercial aircraft. The Company is engaged
in a process to adapt its industrial set-up to the new rates. This
process is addressing the resource adaptation (headcount,skills and competencies) and the fixed cost reduction (industrial
facilities, IT systems) while protecting inventory level and leadtime between aircraft configuration chosen by our customer andaircraft delivery. This encompasses the full industrial processfrom supply chain (including raw material, subcontracted work
packages, equipment, etc.) to aircraft delivery. In this process,the Company focuses attention on quality industrial adherence
Production Organisation Approval (POA).
For more details on specific programme risks, see “– ProgrammeSpecific Risks” below.

Technologically Advanced Products and Services
The Company offers its customers products and services thatare technologically advanced, so the design, manufacturing,components and materials utilised can be complex and require
substantial integration and coordination along the supply chain.
In addition, most of the Company’s products must function underdemanding operating conditions. Throughout the lifecycle ofits products, the Company performs checks and inspections,which may result in modifications, retrofits or other corrective
actions, each of which may have an adverse effect on production,
operations, in-service performance or financial condition. Therecan be no assurance that the Company’s products or services
will be successfully developed, manufactured or operated orthat they will perform as intended.
Certain of the Company’s contracts require it (i) to forfeit part of its
expected profit, (ii) to receive reduced payments, (iii) to provide a
replacement launch or other products or services, (iv) to provide
cancellation rights, or (v) to reduce the price of subsequentsales to the same customer if its products fail to be deliveredon time or to perform adequately. No assurances can be giventhat performance penalties or contract cancellations will not be
imposed should the Company fail to meet delivery schedules orother measures of contract performance, in particular with respect
to development programmes such as the A220, A350‑900 and-1000 XWB, A350 Freighter, A400M, H160 or Ariane 6 andto modernisation programmes such as the A320neo and theA330neo. See “– Programme-Specific Risks” below.
In addition to the risk of contract cancellations, the Company
may also incur significant costs or loss of revenues in connection
with remedial action required to correct any performance issues
detected in its products or services. See “– Management’s
Discussion and Analysis of Financial Condition and Results ofOperations – 2.1.1.3 Significant programme developments in
2019, 2020 and 2021 and other financial topics”. Moreover, to theextent that a performance issue is considered to have a possible
impact on safety, regulators could suspend the authorisation for
the affected product or service.

Airbus / Registration Document 2021

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Risk Factors /2 Business-Related Risks

Any significant problems with the development, manufacturing,
operation, performance or safety of the Company’s products
and services could have a significant adverse effect on the

Company’s financial condition and results of operations aswell as on the reputation of the Company and its products andservices.

Dependence on Public Spending and on Certain Markets
In any single market, public spending (including defence andsecurity spending) depends on a complex mix of geopoliticalconsiderations and budgetary priorities, and may therefore be
subject to significant fluctuations from year to year and country
to country. Any termination or reduction of future funding orcancellations or delays impacting existing contracts may have anegative effect on the Company’s financial condition and resultsof operations. In instances where several countries undertaketo enter together into defence or other procurement contracts,
economic, political or budgetary constraints in any one ofthese countries may have a negative effect on the ability of theCompany to enter into or perform such contracts.
The Company has a geographically diverse backlog. Adverse
economic and political conditions, as well as downturns in
broad economic trends in certain countries or regions, may
have a negative effect on the Company’s financial condition andresults of operations generated not only in those regions but
may also affect the rest of the world due to complex economic
interdependencies.

Availability of Government and Other Sources of Financing
In prior years, the Company and its principal competitors
have each received different types of government financing ofproduct research and development. However, no assurances
can be given that government financing will continue to bemade available in the future. Moreover, the availability of otheroutside sources of financing will depend on a variety of factors
such as market conditions, the general availability of credit,
the Company’s credit ratings, as well as the possibility that

lenders or investors could develop a negative perception of theCompany’s long- or short-term financial prospects if it incurred
large losses or if the level of its business activity decreased due
to an economic downturn. The Company may, therefore, notbe able to successfully obtain additional outside financing on
appropriate terms, or at all, which may limit the Company’s future
ability to make capital expenditures, fully carry out its researchand development efforts and fund operations.

Competition and Market Access
The markets in which the Company operates are highly
competitive. With regard to the Company’s commercial aircraftbusiness for aircraft with more than 150 seats, the Company today
operates in a competitive duopoly. The design, development
and production of commercial aircraft involves high barriers
to entry (including certification requirements, large investment
needs, skilled competencies and access to technology and longdevelopment cycles). Although the two main market participants
for aircraft with more than 150 seats have secured significant
order backlogs, the competition could launch new products orservices that could have a negative impact on the Company’s
revenues, future financial condition and results of operations.
New players are operating or seeking to operate in the
Company’s existing markets, which may impact the structure
and profitability of these markets. In addition, enterprises withdifferent business models and alternative technologies could
substitute the Company’s services and some of its products orcomponent parts thereof. In some areas, competitors may havemore extensive or more specialised engineering, manufacturing,support and marketing capabilities. There can be no assurance
that the Company will be able to compete successfully against
these future competitors or that the competitive pressures it
faces in all business areas will not result in reduced revenues,
market share or profit. See “– Environment, Human Rights,
Health & Safety Risks – Climate-Related Risks” below.

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Airbus / Registration Document 2021

In addition, some of the Company’s largest customers and/or
suppliers may develop the capability to manufacture products
or provide services similar to those of the Company. This would
result in these customers/suppliers marketing their own products
or services and competing directly with the Company for salesof these products or services, all of which could significantly
reduce the Company’s revenues.
In addition, the contracts for many aerospace and defence
products are awarded, implicitly or explicitly, on the basis of homecountry preference. Although the Company is a multinational
company which helps to broaden its domestic market, it may
remain at a competitive disadvantage in certain countries,
especially outside of Europe, relative to local contractors
for certain products. The strategic importance and politicalsensitivity attached to the aerospace and defence industries
means that political considerations will play a role in the choiceof many products and services for the foreseeable future.
The contracts for many aerospace and defence products andservices are regularly associated with offset obligations. The
Company may face difficulties to meet those obligations, toleverage the assets of the country and at the same time to
optimise its industrial base and supply chain.

Risk Factors /2 Business-Related Risks

Major Research and Development Programmes
The business environment in many of the Company’s principal
operating business segments is characterised by extensive
research and development costs requiring significant up-front
investments with a high level of complexity. For the year 2021,
research and development expenses were € 2.7 billion. For theyear 2020, research and development expenses were € 2.9 billion(compared to € 3.4 billion for the year 2019).
Due to the technologically advanced complex nature of the
products that the Company produces and the long period,
including ramp up time, it takes to produce them, the businessplans underlying such investments often contemplate a long
payback period before these investments are recouped, andassume a certain level of return over the course of this period inorder to justify the initial investment. There can be no assurance
that the commercial, technical and market assumptions
underlying such business plans will be met, and consequently,
the payback period or returns contemplated therein achieved.
Significant technological, skills and industrial challenges exist
to achieve the Company’s sustainability ambitions for the future
generations of aerospace. These ambitions require cross industry
and cross government collaboration to address the technologicalrisks that need to be overcome. See “– Environment, Human
Rights, Health & Safety Risks – Climate-Related Risks” below.
Successful development of new programmes also depends on
the Company’s ability to attract and retain engineers and otherprofessionals with the technical skills and experience required tomeet its specific needs. Demand for such engineers may often
exceed supply depending on the market, resulting in intensecompetition for qualified professionals. The Company’s attrition
rate in 2021 was 7.4% overall (including subsidiaries) (compared
to 5.8% overall in 2020). There can be no assurance that theCompany will attract and retain the personnel it requires to
conduct its operations successfully and in particular to attract
and retain engineers and other professionals with the technicalskills and experience required for its research and development
programmes. Failure to attract and retain such personnel oran increase in the Company’s employee turnover rate could
negatively affect the Company’s financial condition and resultsof operations more generally and particularly its ability tosuccessfully execute its research and development programmes.
There is a risk of additional repercussions from COVID-19’s
impact on skills and expertise. Significant effort has been
made to maintain key resources and cope with the increased
departure of skilled staff with improved knowledge management
and knowledge transfer schemes across the Company.
The COVID-19 crisis has impacted key company technologicaldevelopments and competencies, but despite this, the Company
continues seeking to further its development in sustainable
technologies. This commitment directs a significant proportionof the longer term technology research efforts for future products
and services and is based on solving complex problems
backed by exploring multiple technology pathways. Retaining
this ambitious programme is achieved with national researchfunding through frameworks such as CORAC, LUFO, ATI, CDTI
and Horizon Europe where the frameworks enable the Company
and the wider aviation ecosystem to mature and develop therequired key competencies and technologies.
No assurances can be given that the Company will achieve
the anticipated level of returns from these programmes andother development projects, which may negatively affect theCompany’s financial condition and results of operations andcompetitiveness.

Acquisitions, Divestments, Joint Ventures and Strategic Alliances
As part of its business strategy, the Company may acquireor divest businesses and/or form joint ventures or strategic
alliances. Executing acquisitions and divestments can be difficultand costly due to the complexities inherent in integrating or
carving out people, operations, technologies and products.
There can be no assurance that any of the businesses that
the Company intends to acquire or divest can be integrated
or carved out successfully, as timely as originally planned orthat they will perform well and deliver the expected synergies
or cost savings once integrated or separated. In addition,
regulatory, administrative, opposition by social partners orother contractual conditions can prevent transactions frombeing finalised. Each acquisition, divestment, joint venture andstrategic alliance is very specific in its nature, purpose, risk andopportunities. The Company identifies risks through a detailed
and systematic due diligence process and addresses the risks
identified through price mitigation and/or appropriate contractual
coverage, such as indemnification mechanisms, both being the
tailored-made results of complex negotiations with the sellers/
buyers and/or partners. The Company’s business, results ofoperations and financial condition may be materially affected if
these transactions will not be successfully completed or do not
produce the expected benefits.

Airbus / Registration Document 2021

17

Risk Factors /2 Business-Related Risks

Public-Private Partnerships and Private Finance Initiatives
Governmental customers may request proposals and grant
contracts under schemes known as public-private partnerships(“PPPs”). PPPs differ substantially from traditional defence
equipment sales, as they often incorporate elements such as:–– the provision of extensive operational services over the lifeof the equipment;–– continued ownership and financing of the equipment by a party
other than the customer, such as the equipment provider;–– mandatory compliance with specific customer requirements
pertaining to public accounting or government procurement
regulations; and–– provisions allowing for the service provider to seek additionalcustomers for unused capacity.

The Company is party to PPP and private finance initiatives (“PFI”)
contracts, for example Skynet 5 and related telecommunications
services, and in the AirTanker (“FSTA”) project both with the
UK Ministry of Defence. One of the complexities presented by
PFIs lies in the allocation of risks and the timing thereof among
different parties over the life-time of the project.
There can be no assurance of the extent to which the Company
will efficiently and effectively (i) compete for future PFI or PPP
programmes, (ii) administer the services contemplated under
the contracts, (iii) finance the acquisition of the equipment andthe ongoing provision of services related thereto, or (iv) accessthe markets for the commercialisation of excess capacity. The
Company may also encounter unexpected political, budgetary,
regulatory or competitive risks over the long duration of PPP
and PFI programmes.

Programme-Specific Risks
In addition to the risk factors mentioned above, the Company
also faces the following programme-specific risks that could
have a material impact on the Company’s business, results ofoperations and financial condition.
The Company faces the following main challenges on its
commercial programmes:–– adapt to rate and stabilise operational performance postCOVID-19 while maintaining high safety and quality standards;–– monitor and support the supply chain;–– accompany customers and facilitate deliveries to customers
including by remote delivery process;–– ensure a strong customer focus to support return to operations;and–– protect priority projects and deliver developments as per
revised plan including A321XLR, A350 Step7 (Standard 2022),
A350 Freighter, A330-800, A330-800 251t MTOW, A330
Step4, A330 Bridge Tanker and Digital (DDMS and Skywise).
A320 Family programme. In response to the new COVID-19
market environment, the commercial aircraft production rate for
the A320 Family was reduced to 40 per month in June 2020.
In 2021, the Company announced demand for the A320 Family
is expected to lead to a gradual increase in production from therate of 40 per month to 43 in Q3 2021 and to 65 by summer 2023.
The Company proactively and constantly monitors the backlog,
the internal and external supply chain, including engines, so as
to ensure readiness for further rate adaptations in accordancewith traffic evolution, to minimise inventory levels, and secure
aircraft storage capacity. In connection with the A320 Family
programme, the Company faces the following challenges:
ensure the A321XLR on-track development including A321XLR
certification topics with primary airworthiness authorities, adapt
and upgrade our industrial system and capability to meet thegrowing market demands and corresponding product mix within
the family. Market demand for single aisle aircraft, production
and supply chain capabilities will evolve in the next few years andthe Company will closely monitor these evolutions including a
projected significant increase in A321 production. Attention willremain high on ramp up engine availability and engine maturity
in-service.

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Airbus / Registration Document 2021

A400M programme. After the Company signed a contract
amendment to restructure the contract, risks remain on
development of technical capabilities (development effort aswell as possible commercial agreement associated costs inorder to reach Type Acceptance) and the associated costs, on
securing sufficient export orders in time, on aircraft operationalreliability in particular with regards to power plant and on cost
reductions as per the revised baseline.
For further information, please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 12: Revenue and
Gross Margin”.
A350 XWB programme. In connection with the A350 XWB
programme, the Company faces the following main challenges:
to secure revised quarterly delivery targets post-COVID-19,
monitor and support the supply chain, A350 non-structural
surface degradation, reduce recurring costs to improve
competitiveness within a widebody market recovering at a slower
pace and deliver Step 7 as per adapted plan and develop theA350 Freighter. Decisions on further rate adaptation will dependon traffic evolution.
A330 programme. In response to the new COVID-19 market
environment, the commercial aircraft production rate for theA330 programme was adapted to two per month in June 2020.
Then, following new orders, the decision was taken in Q3 2021 toincrease the production rate to almost three in 2023. Decisions
on further rate adaptation will depend on traffic evolution. In
connection with the A330 programme, the main challenges theCompany faces are to secure product competitiveness in the
widebody market segment, monitor and support the supply
chain. The developments were on track in 2021: A330neo low
speed performance improvement certification in February 2021,
A330-900 first aircraft ever to receive EASA CO2 certificationin May 2021, A330neo alternate Centre of Gravity option
certification in September 2021.
A220 programme. In connection with the A220 programme,
the main challenges the Company faces are to secure the A220
cost reduction trajectory with a strong focus on its Design to Cost
roadmap and recurring cost reduction, and to ensure an A220

Risk Factors /3 Legal Risks

book to bill above one to fill current open slots. As a consequenceof the COVID-19 pandemic, the commercial aircraft production
rates were adapted to rate five per month (in Mirabel and in
Mobile) in 2020-2021 and will be increased to rate six early2022. Attention will remain high on engine maturity in service.
A380 programme. In connection with the A380 programme, theCompany faces the following main challenges: secure in service
support for the next decades and long-term competitiveness.
H225 programme. Airbus Helicopters continues to drive
improvements across its product range as part of its commitment
to raise safety standards. The H225 programme is still facing achallenge with the supply chain in a COVID-19 context.
H175 programme. The situation remains challenging on thecommercial side: a tough market environment on its main
offshore segment.
Tiger programme. The Tiger MKIII contract signature and thelifetime extension out of Tiger MKII contract are the key to the
future of the programme. The Company faces the challenge toincrease the Tiger availability, whose action plans are producing
first results.
NH90 programme. A transformation plan has been initiated toadapt to the challenges of a large and diverse in-service fleet
with two axes: first to face a rising volume of maintenance andrepairs, and second to improve fleet availability.

3.

H160 programme. The main challenges for the H160 programme
are to secure the entry-into-service, the FAA certification andthe industrial ramp-up phase.
Border security. In connection with border security projects,
the Company faces the following main challenges: meeting theschedule and cost objectives taking into account the complexityof the local infrastructures to be delivered and the integration ofcommercial-off-the-shelf products (radars, cameras and othersensors) interfaced into complex system networks; assuring
efficient project and staffing; managing the rollout including
subcontractors and customers. Negotiations on change
requests in this respect along with schedule re-alignments
remain ongoing. The Company continues to engage with its
customer to agree a way forward on this contract. The outcomeof these negotiations is presently unclear but could result insignificant further financial impacts.
Defence programmes. The Company is engaged in major
European defence collaboration programmes, such as Eurodrone
and Future Combat Air System (FCAS), serving several European
governments and partnering with several European companiesof the defence sector. Such complex industrial programmes
entail alignments and negotiations between many stakeholders
on technical, industrial as well as on political matters. Due to thevery nature of such discussions and the number of stakeholders,
there is an inherent risk of lengthening the contract preparation
phase and hence delaying the signature date.

Legal Risks

Legal and Regulatory Proceedings
The Company is currently engaged in a number of active legal
and regulatory proceedings. For further information, pleaserefer to “Notes to the IFRS Consolidated Financial Statements– Note 38: Litigation and Claims”.
For the investigation by the UK Serious Fraud Office (“SFO”),
France’s Parquet National Financier (“PNF”), and the US
Departments of State (“DoS”) and Justice (“DoJ”), which
is described in “– Anti-Corruption Laws and Regulations”,
the Company has reached an agreement with the authorities,
which was approved by the French and UK courts and US court
and regulator on 31 January 2020. The agreement resulted ina fine totalling € 3.6 billion plus costs to the French, UK, andUS authorities. For further information about the investigation
and related securities litigation, please refer to “Notes to the
IFRS Consolidated Financial Statements – Note 38: Litigation
and Claims” (Investigation by the SFO, PNF, DoJ, DoS, Related
Commercial Litigation and Securities Litigation), respectively.
The Company expects to continue to spend time and incur
expenses associated with its defence of legal and regulatory
proceedings, regardless of the outcome, and this may divert
the efforts and attention of management from normal business

operations. Although the Company is unable to predict theoutcome of these proceedings, it is possible that they will result in
the imposition of damages, fines or other remedies, which could
have a material effect on the Company’s business, results ofoperations and financial condition. An unfavourable ruling could
also negatively impact the Company’s stock price and reputation.
In addition, the Company is from time to time subject to government
inquiries and investigations of its business and competitiveenvironment due, among other things, to the heavily regulated
nature of its industry. Such inquiries and investigations may covermatters relating to, among other matters, anti-bribery laws andregulations, export control laws and regulations, securities law,trade law and competition law. An adverse decision in any suchmatter could have a material effect on the Company’s business,
results of operations and financial condition. In addition to the riskof an unfavourable ruling against the Company, any such inquiry
or investigation could negatively affect the Company’s reputationand its ability to attract and retain customers and investors, which
could have a negative effect on its business, results of operations
and financial condition. See “– Non-Financial Information 1.2.5– Exemplify Business Integrity”.

Airbus / Registration Document 2021

19

Risk Factors /3 Legal Risks

Anti-Corruption Laws and Regulations
The Company is required to comply with applicable anti-bribery
laws and regulations in jurisdictions around the world where it
does business. To that end, an anti-corruption programme has
been put in place that seeks to ensure adequate identification,assessment, monitoring and mitigation of corruption risks.
Despite these efforts, ethical misconduct or non-compliance withapplicable laws and regulations by the Company, its employees
or any third party acting on its behalf could expose it to liabilityor have a negative impact on its business.
The Company may be subject to administrative, civil or criminal
liabilities including significant fines and penalties, as well as
suspension or debarment from government or non-government
contracts for some period of time. The Company may also
be required to modify its business practices and complianceprogramme and/or have a compliance monitor imposed on it.
Any one or more of the foregoing could have a significant adverse
effect on the Company’s reputation and its business, results ofoperations and financial condition.
In 2016, for example, the Company announced that it had
discovered misstatements and omissions in certain applications
for export credit financing for the Company’s customers, andhad engaged legal, investigative and forensic accounting
experts to conduct a review. Separately, the UK SFO announced
that it had opened a criminal investigation into allegations offraud, bribery and corruption in the civil aviation business of

the Company, relating to irregularities concerning third party
consultants. The Company was subsequently informed that
the French authorities, the PNF, had also opened a preliminary
investigation into the same subject and that the two authorities
would act in coordination going forward. The Company engaged
with the government of the US (DoS and DoJ) relating to conduct
forming part of the SFO/PNF investigation that could fall within US
jurisdiction. The Company also engaged with the government of
the US concerning potential issues of ITAR Part 130 and related
matters. On 31 January 2020, the French and UK courts and
US court and regulator approved an agreement reached by theCompany with the authorities. Any breach of the terms of theagreements by the Company could lead to rescission by theauthorities of the terms of the agreements and reopening of
the prosecutions. Prosecution could result in the imposition offurther monetary penalties or other sanctions including additional
tax liability and could have a material impact on the Financial
Statements, business and operations of the Company. The
agreements reached with authorities may lead to additionalcommercial litigation and arbitration against the Company andtax liability in the future, which could have a material impact
on the Financial Statements, business and operations of theCompany. For further information, please refer to “Notes to the
IFRS Consolidated Financial Statements – Note 38: Litigation and
Claims” (Investigation by the SFO, PNF, DoJ, DoS and Related
Commercial Litigation).

Export Controls Laws and Regulations
The export market is a significant market for the Company.
In addition, many of the products the Company designs andmanufactures for military use are considered to be of national
strategic interest. Consequently, the export of such products
outside of the jurisdictions in which they are produced may be
restricted or subject to licensing and export control requirements,
notably by the UK, France, Germany and Spain, where theCompany carries out its principal activities relating to military
products and services as well as by other countries where
suppliers are based, notably, the US. There can be no assurance(i) that the export controls to which the Company is subject will
not become more restrictive, (ii) that new generations of theCompany’s products will not also be subject to similar or more
stringent controls or (iii) that geopolitical factors or changing
international circumstances will not make it impossible toobtain export licenses for one or more clients or constrain the
Company’s ability to perform under previously signed contracts.
Reduced access to military export markets may have a significant
adverse effect on the Company’s business, results of operations
and financial condition.
Operating worldwide, the Company must comply with several,
sometimes inconsistent, sets of sanctions laws and regulations
implemented by transnational / national / regional authorities.

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Airbus / Registration Document 2021

Depending on geopolitical considerations including national
security interests and foreign policy, new sanctions regimes may
be set up or the scope of existing ones may be widened, at any
time, immediately impacting the Company’s activities. This has
been well illustrated in the current Ukrainian crisis. The impositionof international Export Control restrictions targeting the aviationand space sectors have resulted in Airbus suspending deliveries,
the provisions of services and the supply of spare parts tocustomers in Russia. We continue to monitor the evolution of
the Export Control restrictions and broader sanctions and will
adapt to the changing environment.
Although the Company seeks to comply with all such laws andregulations, even unintentional violations or a failure to comply
could result in suspension of the Company’s export privileges,or preclude the Company from bidding on certain government
contracts (even in the absence of a formal suspension or
debarment).
Furthermore, the Company’s ability to market new products andenter new markets may be dependent on obtaining government
certifications and approvals in a timely manner.

Risk Factors /3 Legal Risks

Dependence on Joint Ventures and Minority Holdings
The Company generates a proportion of its results throughvarious consortia, joint ventures and equity holdings.
The Company recognises its share in the results of its equity
holdings in the proportion of the stake held. In 2021, theCompany’s total share of result from these arrangements
amounted to € 40 million (compared to € 39 million in 2020 and€ 299 million in 2019). The Company’s individually material joint
ventures are ArianeGroup (50%), MBDA (37.5%) and ATR GIE(50%). For further information, please refer to the “Notes to the
IFRS Consolidated Financial Statements – Note 9: Investments
Accounted for under the Equity Method” and “– Note 15: Shareof Profit from Investments Accounted for under the Equity
Method and Other Income from Investments”.
The formation of partnerships and alliances with other market
players is an integral strategy of the Company, and the proportionof sales generated from consortia, joint ventures and equity
holdings may rise in future years. This strategy may fromtime to time lead to changes in the organisational structure,or realignment in the control, of the Company’s existing joint
ventures.
The Company exercises varying and evolving degrees of control
in the consortia, joint ventures and equity holdings in which
it participates. While the Company seeks to participate onlyin ventures in which its interests are aligned with those of its
partners, the risk of disagreement or deadlock is inherent in ajointly controlled entity, particularly in those entities that require
the unanimous consent of all members with regard to majordecisions and specify limited exit rights. The other parties inthese entities may also be competitors of the Company, andthus may have interests that differ from those of the Company.

Product Liability and Warranty Claims
The Company designs, develops and produces a number of highprofile products of large individual value, particularly civil andmilitary aircraft and space equipment. The Company is subject
to the risk of product liability and warranty claims in the eventthat any of its products fails to perform as designed. While theCompany believes that its insurance programmes are adequate
to protect it from such liabilities, no assurances can be giventhat claims will not arise in the future or that such insurance
coverage will be adequate.
The Company follows a policy of seeking to transfer the insurable
risk of the Company to external insurance markets at reasonablerates, on customised and sufficient terms and limits as provided
by the international insurance markets. The insurance industry
remains unpredictable. There may be future demands to change

scope of coverage, premiums and deductible amounts. No
assurances can be given that the Company will be able tomaintain its current levels of coverage nor that the insurance
coverages in place are adequate to cover all significant risk
exposure of the Company.
Any problems in this respect may also have a significant adverse
effect on the reputation of the Company and lead to a decline
in demand for its products and services. Any reputational
damage faced by the Company may be exacerbated due tothe Company’s visibility.
The Company cannot predict at this time the impact on it asa result of any product liability or warranty claims as such will
depend on the nature and size of any such claim.

Intellectual Property
The Company continuously seeks to develop and deliver new
products to meet customers’ evolving needs, while also improving
its existing product lines. Technological innovation has been at thecore of the Company’s strategy since its creation. The Company’s
innovations often provide distinct competitive advantages, withmany becoming standard in the aircraft industry. In addition, theCompany designs, develops and produces a number of highprofile products of large individual value, particularly civil andmilitary aircraft and space equipment. Therefore, intellectual
property (“IP”) is one of the Company’s most valuable assets
and the protection of IP is critical to its business.
The Company relies upon patents, copyright, trademark,confidentiality and trade secret laws, and agreements with its
employees, customers, suppliers and other parties, to establish
and maintain its IP rights in its products and services and in its
operations. In a typical year, the Company files around 800 newpriority-establishing patent applications and files globally around
1,600 national patent applications in global markets where it
seeks to protect its technology assets. The Company has granted
patents for around 10,500 individual technologies with nearly

4,000 patents pending. This level of protection is benchmarked
against peer and competitor companies and is consideredsufficient to protect core, proprietary differentiating technology
which is developed by the Company. Despite these efforts toprotect its IP rights, any of the Company’s direct or indirect IP
rights could be challenged, invalidated or circumvented. Further,
the laws of certain countries do not protect the Company’s
proprietary rights to the same extent as the laws in Europe andthe US. Therefore, in certain jurisdictions the Company may beunable to protect its proprietary technology adequately against
unauthorised third-party copying or use, which could adversely
affect its competitive position. The Company may also face lackof certainty with respect to IP rights for existing or new researchand development programmes and established or potential
partnerships with private or public organisations, academic
institutions and research councils, charities and government
departments, where the relevant IP frameworks or user-rights/
ownership governing those relationships is dependent on the
UK’s former status as a member state of the European Union.

Airbus / Registration Document 2021

21

Risk Factors /4 Environment, Human Rights, Health & Safety Risks

In the event the Company is unable to adequately procure andprotect critical IP it could potentially not implement its businessstrategy.
The Company has been accused of infringement on occasion
and could have additional claims asserted against it in the future.
These claims could harm its reputation, result in financial penalties
or prevent it from offering certain products or services which may
be subject to such third-party IP rights. Any claims or litigation inthis area, whether the Company ultimately wins or loses, could4.

be time-consuming and costly, harm the Company’s reputation
or require it to enter into licensing arrangements. The Company
might not be able to enter into these licensing arrangements
on acceptable terms. If a claim of infringement were successful
against it, an injunction might be ordered against the Company,
causing further losses. There are currently no significant claims of
IP infringement pending against the Company. Minor claims andpre-dispute matters commonly settle either without the issuanceof formal legal proceedings or during initial proceedings.

Environment, Human Rights,
Health & Safety Risks

Climate-Related Risks
Climate change may have a major impact on both theCompany’s industrial operations and its upstream anddownstream value chain, including aircraft direct operations
and the wider air transport ecosystem along with a strong
influence on regulations and stakeholders expectations.
Accordingly, climate-related risks can potentially affect theCompany’s business and competitiveness, its customers andother actors from the aviation industry.
The Company categorises its climate-related risks andopportunities according to the Task Force on Climate-related
Financial Disclosures (“TCFD”) recommendations. In particular,risks are sorted into two categories: transition and physical.

Transition Risks
Technology: The Company has identified the risk of a reductionin the Company’s business, results of operations and financial
condition if a competitor brings a lower emission product tothe market before it does. Delivering on commitments andpotential future requirements to mitigate climate impacts
will require significant technological developments for thecommercial aircraft sector as well as appropriate infrastructuredevelopments and other ecosystem adaptations. In the eventthat a competitor or new market participant has access totechnological developments unavailable to the Company andis able to place on the market a large passenger aircraft withsignificantly lower emissions before the Company, climate
mitigation requirements may push the market towards competingproducts until the Company and its partners can develop acompeting alternative, which could lead to a temporary lossof market competitiveness and reduced revenue.
Market: Changes in societal expectations and growing
concerns about climate change may impact market demand
for air transport. In particular, a change in certain passengers’
behaviour or their transition to other transport modes could
decrease the demand for the Company’s current and future
generation of products, causing a loss of revenues.

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Airbus / Registration Document 2021

The development of future products based on the ZEROeconcepts will require significant investments in both products
and supporting infrastructure, which could directly impact theoperating costs of such a product.
The competitiveness of this next generation product will alsostrongly depend, among other factors, on the evolution of
the price of carbon dioxide emissions. It is, therefore, crucial
for the Company to account at each step of development formarket expectations, while staying affordable for its customers
and competitive with regards to competitors’ portfolios. The
failure to do so could result in the Company losing market
share to competitors, as well as affecting the Company’s
return on investment with regards to future commercial aircraft
products.
Energy transition: The Company has identified a risk of
insufficient availability of low carbon fuels (such as sustainableaviation fuels or hydrogen) and the limited number of innovativecertified pathways that may compromise the decarbonisation
ambition of the Company and for the whole aviaton sector.
Policy and Legal: Aviation is a complex industry, with longproduct development cycles and where change takes along time to be implemented. A rapid evolution of climaterelated policies (such as carbon pricing policies andsustainable aviation fuel policies) and regulatory frameworks(CO 2 standards, sustainable finance, emissions trading
systems, aircraft operation restrictions among others) could
generate fast-changing requirements and could obstruct
new product development pathways. As aviation is a global
industry, policies and regulatory frameworks implemented atregional level rather than international level, or evolving at adifferent speed depending on the region, would unbalance acompetitive level playing field for manufacturers and operators
possibly creating market distortion. This could result in a lossof competitiveness for the Company.

Risk Factors /4 Environment, Human Rights, Health & Safety Risks

Reputation: Reputational risks could be divided in several
categories. Firstly, there is a risk that misperceptions about
the Company’s environmental performance is used as a key
decision-making criteria for consumers, investors, or even new
talents. Secondly, there is a risk that the Company’s reputationis damaged by growing societal concerns about the climatechange impact of aviation or by the lack of transparency on
progress made to address climate-related issues.
As an example, the Company was the first manufacturer todisclose its ambition to bring a zero-emission aircraft to themarket. If the ambition is perceived as unattainable or if theCompany is not able to deliver on its ambition it could result
in reputational damage leading to reduced investment, loss ofrevenues and reduced attractiveness. A similar situation could
occur if the Company’s environmental performance is not on
par with its expressed ambition.

Physical Risks
The foreseen consequences of climate change include harsher
average weather conditions and more frequent extreme weather
events, such as hurricanes, hail storms, heat waves or extreme
cold spells. To cope with degraded operational conditions,costly, time-consuming and more frequent redesigns may berequired by the Company to improve its products to meet more
stringent regulation and certification criteria or standards.
The effects of climate change on weather conditions may impact
operating conditions of the Company’s industrial activities(including the activities of its supply chain) with higher occurrence
and severity of, for instance, hurricanes, hail storms or floods.
As a consequence, industrial activities may be disrupted orinterrupted if a part of the Company’s industrial system or
its supply chain is affected or impaired by such events. The
Company’s future installations may require more stringent
requirements and planning to withstand more intense weather
events.

Regulated Chemicals
Evolution of the chemicals’ regulatory framework may lead toshort- and long-term potential bans and restrictions, and resultin business disruption across the Company’s value chain.
With the aim of protecting human health and the environment,
regulators at national and international level have developed astringent set of legal requirements that are continuously evolving
to regulate, minimise the use of and eliminate various substances.
Due to the above-mentioned regulatory requirements, theCompany has identified the risk of chemicals obsolescencethat may lead to supply disruption.

In order to reduce the use of targeted substances and mitigate
the risk of disruption in its operations and supply chain, theCompany’s policy is the development of alternative technologies
that use substances of less concern and substitution of thesewhen suitable alternatives meeting stringent certification andairworthiness criteria are available for deployment.
Complementary to substitution, digital solutions are being
developed to improve traceability of regulated substances inour products from the early design steps down to the end of life.

Regulatory Risks
The Company’s expenditure associated with environmental,
human rights, health and safety challenges may increase due
to both increased costs of compliance with regulations in thoseareas as well as reputational and litigation risks.
Given the scope of its activities and the industries in which it
operates, the Company is subject to stringent environmental,
human rights, health and safety laws and regulations in numerous
jurisdictions around the world. The Company therefore incurs,and expects to continue to incur, significant capital expenditureand other operating costs to comply with increasingly complex
laws and regulations covering the protection of the naturalenvironment as well as occupational health and safety and humanrights. Health and safety expenditures include investments in
the identification and the prevention, elimination or control ofphysical and psychological risks to people arising from work,
including chemical, biological, mechanical and physical agents.
Risks that could arise from work activities include the possibilityof injury, physical and mental ill-health, damage to equipment,
business interruption and regulatory action. Any reputational risk
and claims against the Company that may result will also need
to be managed and may lead to additional health and safety

expenditure being required. In 2021, the Company maintained its
stringent COVID-19 risk management measures in the workplace.
However, the Company recognises that its employees continue
to face physical and mental ill-health risks due to the COVID-19
associated public health controls, combined with the Company
adaptation plans. Environmental protection expenditures include
costs to prevent, control, eliminate or reduce emissions to theenvironment, waste management, the content of the Company’s
products, and reporting and warning obligations. Current trends
indicate that regulatory pressure on the international scene to
reduce the environmental footprint of industry is steadily growing(circular economy and resources efficiency, energy transition andclimate change engagement, air and water quality improvement).
Moreover, new laws and regulations, the imposition of tougher
license requirements, increasingly strict enforcement or new
interpretations of existing laws and regulations may cause theCompany to incur increased capital expenditure and operating
costs in the future in relation to the above, which could have anegative effect on the Company’s business, results of operations
and financial condition.

Airbus / Registration Document 2021

23

Risk Factors /4 Environment, Human Rights, Health & Safety Risks

If the Company fails to comply with environmental, humanrights, health and safety laws and regulations, even if caused
by factors beyond its control, that failure may result in the levyingof civil or criminal penalties and fines against it. Regulatory
authorities may require the Company to conduct investigations
and undertake remedial activities, curtail operations or close
installations or facilities temporarily to prevent imminent risks.
In the event of an industrial accident or other serious incident,
employees, customers and other third parties may file claims
for ill-health, personal injury, or damage to property or theenvironment (including natural resources). Further, liability undersome environmental, human rights, health and safety laws canbe imposed retrospectively, on a joint and several basis, andin relation to contaminated sites, without any finding of noncompliance or fault. These potential liabilities may not always
be covered by insurance, or may be only partially covered.
The obligation to compensate for such damages could have anegative effect on the Company’s business, results of operations
and financial condition.
In addition, the various products manufactured and sold by
the Company must comply with relevant health, safety andenvironmental laws, for example those designed to protect
customers and downstream workers or communities, and those
covering substances and preparations, in the jurisdictions inwhich they operate. Although the Company seeks to ensurethat its products meet the highest quality standards, increasingly
stringent and complex laws and regulations, new scientific24

Airbus / Registration Document 2021

discoveries, delivery of defective products or the obligation to
notify or provide regulatory authorities or others with required
information (such as under the European Union Regulation
known as “REACH”, which addresses the production and useof chemical substances) may force the Company to adapt,
redesign, redevelop, recertify and/or eliminate its products fromthe market thereby incurring significant additional costs. Seizuresof defective products may be pronounced, and the Company
may incur administrative, civil or criminal liability. Any problems
in this respect may also have a significant adverse effect on the
reputation of the Company and lead to a decline in demand forits products and services.
Despite compliance with all applicable laws and regulations,the Company’s reputation and the demand for its products may
also be affected by the public perception of environmental andsocietal impacts of the Company’s products in operation (such as
the emission of greenhouse gases or noise) and of the impacts of
the Company and its supply chain industrial operations on local
communities, on the environment and on air and water quality.
The Company cannot predict at this time the impact on it as aresult of environmental, human rights, health and safety matters,
and may be adversely affected by them in the manner describedabove. For further information on sustainability-related risks,see “– 1.2. Non-Financial Information – 1.2.1 The Company’s
Approach to Sustainability”.

Risk Factors /Airbus / Registration Document 2021

25

Chapter

1
26

Airbus / Registration Document 2021

1
Information on
the Company’s Activities
1.1
1.1.1
1.1.2
1.1.3
1.1.4
1.1.5
1.1.6
1.1.7

Presentation of the Company
Overview
Airbus (Commercial Aircraft)
Helicopters
Defence and Space
Investments
Insurance
Legal and Arbitration Proceedings

1.2
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6
1.2.7
1.2.8
1.2.9
1.2.101.2.11
1.2.12
1.2.13

Non-Financial Information
55
The Company’s Approach to Sustainability
55
Lead the Journey Towards Clean Aerospace
60
Build Our Business on the Foundation of Safety and Quality
72
Respect Human Rights and Foster Inclusion
80
Exemplify Business Integrity
92
Responsible Supply Chain
95
Community Impact
102
ESG Data Board
104
Deployment of Vigilance Plan (Devoir de Vigilance)111
EU Taxonomy Disclosure
112
TCFD Correspondence Table113
GRI Index
114
SASB Correspondence Table
118

1.3

Other Corporate Activities

119

1.4

Recent Developments

127

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28
32
41
45
52
52
52

27

1. Information on the Company’s Activities /1.1 Presentation of the Company

1.1 Presentation of the Company
1.1.1 Overview
Due to the nature of the markets in which the Company operates and the confidential natureof its businesses, any statements with respect to the Company’s competitive position set out
in paragraphs 1.1.1 through 1.1.5 below have been based on the Company’s internal information
sources, unless another source has been specified below.
Airbus pioneers sustainable aerospace for a safe and united
world. The Company constantly innovates to provide efficientand technologically-advanced solutions in aerospace, defence,and connected services. In commercial aircraft, Airbus offers
modern and fuel-efficient airliners and associated services. The
Company is also a European leader in defence and security andone of the world’s leading space businesses. In helicopters, theCompany provides the most efficient civil and military rotorcraft
solutions and services worldwide.

Strategy2020 was an unprecedented year for the aviation industry acrossthe globe, and 2021 became a turning point setting the direction
for both a managed recovery and the longer term transformationof aviation. The COVID-19 outbreak demonstrated how severe
and unpredictable events can impact a global business like
Airbus. It also demonstrated that when industry, customers andgovernments work together, it is possible both to effectively
manage what can be considered as the deepest crisis in thehistory of aviation, and progressively learn how to better prepare
for the overall direction of travel in the future. Another key shift
happening in parallel has been acceleration in the demand
for sustainability and zero emissions targets. Addressing thischallenge is, in effect, key to ensuring airlines’ continued license
to operate. In this new environment, the Airbus purpose “Wepioneer sustainable aerospace for a safe and united world” isthe Company’s guiding star. The Airbus strategy is designed to
set out the strategic priorities to enable the Company to deliveron this purpose.
The strategic priorities focus on the geopolitical situation,
sovereignty, resilience and sustainability and are underpinnedby the leadership role that the Company expects to take andwhich will be so important to its success:1. continue to grow Airbus as an aerospace and defence leader;
2. leverage its roots to pursue global reach through local actions;
3. continue to invest in the future in an evolving and highly
competitive environment;
4. lead the transformation of the aerospace industry while meetingthe highest environmental, social and governance standards.

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Airbus / Registration Document 2021

1. Continue to grow Airbus as an aerospaceand defence leader
Leadership today is not a guarantee for leadership tomorrow.
The Company believes that its ability to win in the future will beearned through continuous innovation, both in and around its
current portfolio as well as when preparing the future generationof products and related services. All activities must be executedto the highest quality and safety standards possible.

1.1 Keep current portfolio young and competitive
The Company’s financial success is strongly linked to capitalisingon the current commercial aircraft portfolio through incremental
improvements. Airbus estimates that all current products havea substantial upside leading to exceptional longevity. This has
been demonstrated by the New Engine Option (NEO) versionsof A320 and A330 and stretch versions such as the A321XLR,
but also in smaller incremental improvements on every product.
The A330neo and the A350 XWB both deliver high levels of fuelefficiency (25% fuel consumption saving compared to previous
generation aircraft), accelerated pilot on boarding (all widebody aircraft benefit from a common type rating making pilot
training shorter, smoother and lower cost), and comfort throughthe exclusive airspace cabin, setting a modern benchmark inpassenger comfort and wellbeing. Airbus aircraft are also well
suited to serve freighter and VIP markets and are proven to becompetitive in selected military niches. The decision to launch
the A350 Freighter version in 2021 is a typical example, setting
a new standard for airfreight efficiency. With the same logic,
the helicopter portfolio is expanding through military versionsof commercially successful products. In the military field,
Eurofighter has a performance today beyond customer’s initial
targets through intelligent upgrades, and remains a very strong
competitor for export markets.

1.2 Pioneering for the next generation
In preparing the next generation of aircraft, the requirement for
improved sustainability will be the catalyst that allows aviation
to continue to meet its larger purpose of uniting the world. The
quest for zero emissions air travel will fundamentally change
aerospace. Not since the introduction of the jet engine has theindustry faced such a challenge, in particular around new energy
sources. However, new certification challenges, new materials,
new designs, new industrial processes and new business models
will also be assessed, which will provide sources of opportunity.
In short, the Company aims to set the standards and mature
the technologies of sustainable aviation for the benefit of theenvironment and society at large, delivering products that are
attractive and efficient for our customers while remaining viable
and feasible for Airbus.

1. Information on the Company’s Activities /1.1 Presentation of the Company

1.3 Build advantages through a broad span withinaerospace and defence

3. Continue to invest in the future in an evolving
and highly competitive environment

The resilience provided by a broad portfolio of products andservices is essential for Airbus today and will continue to be in
the future. Most aerospace companies nurture a substantial
defence and space element in their portfolio to gain synergies
and increase stability. This is also true for Airbus, with commercial
aircraft, helicopters, defence, space, and security activities all partof the portfolio. Hence governmental, military and commercial
business, products and services, fixed wing and rotary platforms,
satellites and launchers, both self- and customer-funded, are all
elements which balance market variations, provide synergies,
and help to smooth investment cycles. Additionally, as digital
design, manufacturing & services require similar capabilities
across aerospace segments, owning a broad portfolio delivers
flexibility in resource allocation and the reuse of investments
in core capabilities. The COVID-19 crisis demonstrated theimportance of having strong and complementary helicopter,defence, space and security businesses alongside commercial
aviation within the portfolio, enhancing the resilience of the overall
group.

The COVID-19 pandemic has required Airbus to face the deepest
crisis in the Company’s history, focusing on cash containment toensure survival. The right combination of growth, profitability andresilience is vital to the Company’s long-term competitiveness.

1.4 Expand as a leader towards new territories
Urban air mobility (“UAM”) is at the forefront of a revolution to
make urban mobility three dimensional in the future. Capturing
growth in new vertical take-off and landing (“VTOL”) and UAM
markets, for both platforms and services, is a major driver for
the Company’s helicopter strategy. Airbus launched its NextGen
eVTOL in 2021 for this purpose. Shaping air and space power
which integrates aircraft, unmanned systems and space assets
with a cloud structure for command and control, will revolutionise
the performance of Airbus’ defence customers in future andaims to secure the Company’s long-term presence in defence
markets. In commercial aviation, the quest for climate neutral
solutions will play out globally and will drive demand for our
products and services.

2. Leverage its roots to pursue global reachthrough local actions
Over the past 50 years, Airbus has grown from being acooperation of national aerospace companies, in four European
countries, to a global leader in commercial aerospace with astrong foothold in helicopters, defence, space and security. The
ambition of European industrialists to work together towards
a common goal of creating one leading player in commercial
aerospace was decisive to the success story of the Company.
Then, as today, that European vision saw the UK as being integral
to its global success. No aerospace and defence company ismore culturally and humanly diverse than Airbus. Approximately
140 nationalities make up the Company’s workforce and over
20 languages are spoken at Airbus, reflecting the diversity of
its employees and customer base. This is a key strength of theCompany in addressing global markets. Airbus has built on its
strong European heritage to become truly international, operating
across more than 180 locations. The Company has invested inand grown aircraft and helicopter final assembly lines acrossAsia, Europe and the Americas.

1

Aerospace remains a major backbone of the global economy anda vital service to people and businesses. Airbus is committed
to playing its role in ensuring that its sectors consistently deliveron their vital role in the global economy by building resiliencethrough having sufficient funds available to withstand the shocks;
through close cooperation with stakeholders to ensure the overall
travel value chain survives; through seamless coordination
along the supply chain to detect issues rapidly; and throughreinforcement of the balance sheet to continue investing in futurecompetitiveness.
The Company believes that the way to remain attractive toinvestors, employees and society at large is to be at the forefrontof innovation and to be a leader in the global market. This requires
discipline on both revenues and the cost base, throughout all
Airbus businesses, to gain sufficient volume and profitability tocontinuously drive the industry forward. Having successfullyincreased revenue and profit in the years before the COVID-19
crisis, continuous improvement is essential to further support
Airbus’ resilience and prepare for future investments. As theCompany delivers on its strategy as a leader with European roots
and global reach, the Company is uniquely positioned to pioneer
the industry, deepen relations with its customers, expand its rolein defence, space and helicopters, while delivering shareholder
value in line with market expectations.

4. Lead the transformation of the aerospaceindustry while meeting the highest
environmental, social and governancestandards
Aviation’s licence to grow and operate in the future is inherently
linked to sustainability. Improving the environmental impact of our
day-to-day lives is at the top of agendas throughout the world.
While some argue for limiting mobility, the Company believes
the solution should not hinder people’s ability to connect andunite across the world. Making the world a smaller and moretransparent place to live makes it safer and more rewarding.
The ability to discover, learn, share and remain safe are basic
human needs and a guiding star for the Company. Air travel
brings prosperity through the connections it makes. One in ten
jobs around the world is in the travel and tourism industry, and air
travel routes are the arteries of this system. Sufficient prosperity
will be required to deliver the climate neutral transformationof industry that society demands. Hence, the purpose of theCompany is to pioneer sustainable aerospace for a safe andunited world.
The Company does not, however, operate in a vacuum. Social
sustainability and good governance are integral elements inmanaging the Company’s vision for a sustainable future. Airbus’
business is deeply connected with environmental, social, andgovernance (“ESG”) objectives through various international
standards, frameworks and initiatives.
Airbus is also a global leader in the defence sector. Defence is a
crucial component of security, and security is the precondition
for a responsible and sustainable world. In this endeavour, Airbus
is committed to sustainable and responsible business practices,

Airbus / Registration Document 2021

29

1. Information on the Company’s Activities /1.1 Presentation of the Company

and maintaining the strictest legal and highest ethical standards
in full compliance with international laws and European andnational export control regulations. Our defence capabilities
provide countries with the means to protect their citizens,
democratic values and vital infrastructure, which is of incalculable
societal value.

4.1 Lead the journey towards clean aerospace
Airbus and the industry at large must ultimately determine ways
to eliminate the impact of its activities on the climate. This mustbe achieved by the current generation. This is a clear expectationof the flying public and society at large. Working with international
aviation organisations, Airbus is striving to lead the industry ona strong path to the lowest climate impact solutions as part ofthe industry’s commitment to the Paris Agreement.
A major focus of the Company’s sustainability strategy is
reducing the CO2 emissions of its aircraft, as well as its industrial
environmental footprint at its sites worldwide and throughout the
supply chain. To this end, the Company is contributing to meetingkey industry-wide environmental performance targets. As wellas investing in and developing viable products that are attractive
and efficient for its customers by maturing the technologies
related to sustainable aviation fuels, industrial systems, aircraftarchitectures based on next generation engines, future wing
and fuselage design and automation, the Company also remains
focused on maturing hydrogen ecosystems and transport andrefuelling infrastructure to deliver on its ambition to bring theworld’s first zero-emission commercial aircraft to market by2035, known as ZEROe.

4.2 Build our business on the foundationof safety and quality
Safety cannot be compromised. That’s why the number one
priority for the Company is to protect and safeguard its people,
suppliers, communities, customers and assets from healthand safety risks arising from the Company’s activities. This is
why fostering a safety culture which goes beyond regulatorycompliance in product safety and quality, and championing a“zero-harm” mind-set in which the Company takes responsibility
for itself and others, is a core commitment of the Company’ssustainability strategy. The Company focuses on developing
rigorous safety management guidelines to ensure its long-termcompetitiveness.

4.3 Respect human rights and foster inclusion
The Company’s respect for human rights is an essential partof responsible business conduct in its business activities andthroughout the value chain.
Airbus believes that everyone who works either for or with theCompany, both within its business operations and the supply
chain, contributes to its continued innovation, creativity, andbusiness success. Therefore, it’s imperative that the Company
fosters empowerment, collaborative working, inclusivenessand diversity to enable a workplace to which people can bring
their best selves. The Company ensures that its employees
have access to a wealth of education and employee mobility
opportunities to grow their skills because the Company strongly
believes a more educated workforce is a more empowered
workforce.

30

Airbus / Registration Document 2021

4.4 Exemplify business integrity
Business integrity is non-negotiable. As the Company’s
operations reach across more than 100 countries worldwide,
it has a clear obligation to comply with laws and regulations
wherever the Company operates. The Company conducts its
business ethically, based on its values, and not only in compliancewith laws and regulations. Furthermore, the Company strives fora culture of integrity in its people, partners and suppliers. In aneffort to improve accountability, the Company is strengthening
its current compliance programmes with the intention of
becoming a benchmark in this area. To this end, the Company
has established a dedicated Ethics & Compliance programmeand organisation, ensuring that ethical and compliant behaviour
is deeply embedded throughout the Company.

Organisation of the Company’s
Businesses
The Company has organised its businesses into the following threeoperating segments: (i) Airbus, (ii) Helicopters and (iii) Defence
and Space. The chart set out in “– General Description of
the Company and its Share Capital – 3.3.6 Simplified Group
Structure Chart” illustrates the allocation of activities.

Airbus (Commercial Aircraft)
Airbus is one of the world’s leading aircraft manufacturers ofpassenger and freighter aircraft and related services.
In 2021, Airbus delivered 611 aircraft (compared to 566 deliveriesin 2020) and received 771 gross orders (compared to 383 grossorders in 2020). After accounting for cancellations, net orderintake for 2021 was 507 aircraft (compared to 268 aircraft in2020). As of 31 December 2021, Airbus’s backlog of commercial
orders was 7,082 aircraft (compared to 7,184 aircraft in 2020).
In 2021, Airbus (Commercial Aircraft) recorded total revenues of€ 36.16 billion – representing 69% of the Company’s revenues.
See “– 1.1.2 Airbus”.

Helicopters
Airbus Helicopters is a global leader in the civil and militaryrotorcraft market, offering one of the most complete and modern
ranges of helicopters and related services. This product range
currently includes light single-engine, light twin-engine, medium
and medium-heavy rotorcraft, which are adaptable to all kindsof mission types based on customer needs.
Airbus Helicopters delivered 338 helicopters in 2021 (compared
to 300 in 2020) and received 414 net orders in 2021 (compared to
268 net orders in 2020). Order intake amounted to € 8.55 billion(2020: € 5.52 billion). Military contracts accounted for 60% of
this order volume, with civil sales representing the remaining
40%. At the end of 2021, Airbus Helicopters order book stoodat 739 helicopters (compared to 663 helicopters in 2020).
In 2021, Airbus Helicopters recorded total revenues of€ 6.51 billion, representing 12% of the Company’s revenues.
See “– 1.1.3 Helicopters”.

1. Information on the Company’s Activities /1.1 Presentation of the Company

1

Defence and Space
Airbus Defence and Space is Europe’s number one defence andspace enterprise, one of the world’s leading space companies
and among the top 10 global defence enterprises. Defence
and Space puts a strong focus on core businesses: space,
military aircraft, missiles and related systems and services.
Airbus Defence and Space is organised in four ProgrammeLines: Military Aircraft; Space Systems; Connected Intelligenceand Unmanned Aerial Systems. Airbus Defence and Space

develops, produces and maintains cutting-edge products,
systems and services, enabling governments, institutions andcommercial customers to protect people and resources.
In 2021, Airbus Defence and Space recorded total revenues of€ 10.19 billion, representing 20% of the Company’s revenues.
See “– 1.1.4 Defence and Space”.

Summary Financial and Operating Data
The following tables provide summary financial and operating data for the Company for the past three years. See “– Management’s
Discussion and Analysis of Financial Condition and Results of Operations – 2.1 Operating and Financial Review”.
REVENUE BY BUSINESS SEGMENT(In € million)

2021

2020

2019

Airbus36,16434,25054,775

Airbus Helicopters

6,509

6,251

6,007

Airbus Defence and Space

10,186

10,446

10,907

Subtotal segmental revenue

52,85950,947

71,689Eliminations

Total

(710)

(1,035)(1,211)

52,14949,91270,478ORDER INTAKE BY BUSINESS SEGMENT
2021

2020

(In € billion) (In percentage)(1)

Airbus

40.0

64.3%

2019

(In € billion) (In percentage)(1)

16.1

48.1%

(In € billion) (In percentage)(1)

65.8

80.7%

Airbus Helicopters

8.6

13.7%

5.5

16.4%

7.2

8.8%

Airbus Defence and Space

13.7

22.0%

11.9

35.5%

8.5

10.5%

Subtotal segmental order intake

62.2

100%

33.5

100%

81.5

100%

Eliminations

(0.2)

(0.2)

(0.3)

Total

62.0

33.3

81.2

(1) Before “Eliminations”.

ORDER BACKLOG BY BUSINESS SEGMENT
31 December
2021

2020

(In € billion) (In percentage)(1)2019(In € billion) (In percentage)(1)(In € billion) (In percentage)(1)

Airbus

345.1

86.4%

324.7

86.8%

424.1

89.7%

Airbus Helicopters

18.0

4.5%

15.8

4.2%

16.6

3.5%

Airbus Defence and Space
Subtotal segmental order backlog
Eliminations

Total

36.1

9.1%

33.5

9.0%

32.3

6.8%

399.2

100%

374.0

100%

473.0

100%

(0.8)

(0.9)

(1.5)

398.4

373.1

471.5

(1) Before “Eliminations”.

Airbus / Registration Document 2021

31

1. Information on the Company’s Activities /1.1 Presentation of the Company

Relationship between Airbus SE and the Company
Airbus SE itself does not engage in the core aerospace, defenceor space business of the Company but coordinates related
businesses, sets and controls objectives and approves majordecisions for the Company. As the parent company, Airbus SE
conducts activities which are essential to the Company’s activities
and which are an integral part of the overall management of theCompany. In particular, finance activities pursued by Airbus SE
are in support of the business activities and strategy of theCompany. In connection therewith, Airbus SE provides or
procures the provision of services to the subsidiaries of theCompany. General management service agreements have been

put in place with the subsidiaries and services are invoiced ona cost plus basis.
For management purposes, Airbus SE acts through its Boardof Directors, Executive Committee, and Chief Executive Officer inaccordance with its corporate rules and procedures as described
below under “– Corporate Governance – 4.1 Management andControl”.
Within the framework defined by Airbus SE, Airbus, each Division,
Business Unit and subsidiary is vested with full entrepreneurial
responsibility.

1.1.2 Airbus (Commercial Aircraft)
Airbus is one of the world’s leading aircraft manufacturers ofpassenger and freighter aircraft and related services. In orderto help shape the future of air transportation, Airbus seeksinnovative technological solutions and the most efficient sourcing
and manufacturing possible – so airlines can grow sustainably
and people can connect. Airbus’ comprehensive product line
comprises successful families of jetliners ranging in capacityfrom 100 to more than 600 seats: the A220 Family; the A320
Family, which is civil aviation’s best-selling product line; the A330
Family, including the advanced A330neo; the latest generation
widebody A350 XWB; and the double-deck A380. Across its
aircraft families Airbus’ solutions ensure that aircraft share highcommonality in airframes, on-board systems, cockpits andhandling characteristics. This significantly reduces operating costs
for airlines. See “– 1.1.1 Overview” for an introduction to Airbus.
Airbus’ global presence includes activity in Europe (France,
Germany, Spain and the UK), as well as in Canada, and moreglobally at fully-owned subsidiaries in the US, China, Japan, Indiaand in the Middle East. Airbus also has spares centres as well as
engineering and training centres worldwide. There are also hubs
and field service stations around the world. Airbus also relies on
industrial co-operation and partnerships with major companies
and an extensive network of suppliers around the world.

Strategy
Airbus’ purpose “We pioneer sustainable aerospace for asafe and united world” and the key elements of the strategy
will support Airbus to focus its efforts and make a sustainable
contribution to the future.
Airbus aims to keep its current commercial aircraft portfolio young
and competitive through incremental improvements, while at thesame time pioneering for the next generation. In preparing the
succession, the quest for sustainability will be the game changer.
Airbus targets to set the standards towards the lowest climate
impact solutions and mature the technologies of sustainableaviation. Sustainable Aviation Fuel (“SAF”) will play a key role
in reducing the environmental footprint of the aviation industry.
Hydrogen is part of the solution. In September 2020, the Company
revealed three concepts for the world’s first zero emissioncommercial aircraft and in September 2021 Airbus hosted anaviation environmental summit bringing together operators,
fiinaciers, regulators and non-governmental organisations.

32

Airbus / Registration Document 2021

Aerospace is a major backbone of the global economy and a vital
service to people and businesses. Airbus will continue to invest
in its future in an evolving and highly competitive environment
through the right combination of growth, profitability and resilience.
Airbus intends to further strengthen the industrial set-up andindustrial flow. The further transformation of the industrial value
chain will ultimately improve quality, competitiveness, agility andsustainability of the entire ecosystem. As seen in the COVID-19
crisis, it is vital to have strong and complementary businesses
alongside commercial aviation within its portfolio.
For further information, see “– 1.1.1 Overview – Strategy”
and “– 1.2 Non-Financial Information – 1.2.2 Lead the Journey
Towards Clean Aerospace”.

MarketMarket Drivers
In the long-term the main factors affecting the commercial aircraft
market include passenger demand for air travel, airline pricing
policies and resulting yields, cargo activity, economic growth
cycles, evolution of the cost of energy, national and international
regulation, the rate of replacement and obsolescence of existing
fleets, the availability of aircraft financing sources and market
evolutionary factors. The performance, competitive posture andstrategy of aircraft manufacturers, airlines, cargo operators andleasing companies as well as wars, political unrest, pandemics
and extraordinary events may also precipitate changes indemand and lead to short-term market imbalances. For further
information, see “– Risk Factors – Business-Related Risks –Commercial Aircraft and Helicopter Market Factors”.
After the COVID-19 pandemic hit in 2020, 2021 will be viewed in
retrospect as a year of recovery. The year was characterised by
the increasing pace of vaccine rollout but equally the mutationof the virus through many variants, most notably Delta andOmicron. Whilst the vaccine coverage of different populations
provided the greatest safeguards to allow a reopening of air travel,
the application of different sovereign policies – from controlled
opening through mutual recognition of vaccine certificates to zeroCOVID policies drove a volatility of air traffic which moderated
a strong latent desire of travelers to resume flying. Generally,
the recovery was dominated by strong domestic markets (e.g.
China and the US) followed by strong regional markets, e.g.
Europe over summer as a consequence of the EU vaccination
passport. For the same reasons, international travel and most1. Information on the Company’s Activities /1.1 Presentation of the Company

notably trans‑Pacific, Europe-Asia and intra-Asia markets haveremained at low levels of activity. Overall, passenger air traffic
in 2021 – measured in RPKs – grew 18% versus 2020 however
remained almost 60% below 2019 levels according to IATA.
Freight traffic has remained robust and yields have been
historically high. This has been driven by strong growth in
e-commerce, increases in maritime containerised shipping rates
and a shortage of belly freight capacity due to large numbers of
widebody aircraft being stored.
Having adapted its production rates in 2020 in response to theseverity and speed of the industry downturn, Airbus was able in
2021 to stabilise widebody production and start to increase A320
Family production, placing unallocated aircraft and delivering
part of the accumulated inventory. Over the full year Airbus
delivered 611 new aircraft to 88 customers and achieved a net
order intake of 507 aircraft. At the end of 2021 Airbus maintained
a firm order backlog of 7,082 aircraft, over 80% of which are for
the A320 family.
Competitive market-based financing for new aircraft deliveries
has remained available.
The recovery is likely to follow a similar pattern to previous
recoveries: many stored aircraft will return to service,complementing newly-delivered aircraft to allow recovery offlight frequencies; load factors and aircraft utilisation will improveand then yields. The balance between these is dependent on
individual actions in a competitive marketplace for air transport
services. Provided that the consequences of the emergence offurther COVID variants can be limited by increased vaccination
coverage and immunity, the Company continues to expect thecommercial aircraft market to return to pre-COVID levels between
2023 and 2025 and that the pandemic has not structurally
changed the long-term market for commercial aircraft.

Through its analysis Airbus continues to believe in the long-term
growth potential of our industry, with a continuing drive to thesustainable operation of commercial aircraft aimed at meetingthe needs of both the environment and air passengers in the
coming years.
Growth and Replacement. Air transport is a global industry anddemand for aircraft is subject to differences in the performanceof national and regional economies as well as the evolution ofenergy costs. However aircraft are liquid assets that can be
moved from one region to another and this provides a degreeof mitigation to fluctuation of demand.
At the end of 2021, Airbus’ backlog was 7,082 aircraft, a reductionof 102 versus the prior year. Close proximity and attentivenessto customer needs has enabled careful management of thisbacklog to mitigate the effect on production rates from thepandemic, and third-party financiers have continued to support
the delivery of new, more environmentally-efficient aircraft.
Airline network development: “hub” and “point-to-point”
networks. Following deregulation, major airlines have sought
to tailor their route networks and fleets to continuing changes
in customer demand. Accordingly, where origin and destination
demand prove sufficiently strong, airlines often employ direct,
or “point-to-point” route services. However, where demand
between two destinations proves insufficient, airlines havedeveloped highly efficient “hub and spoke” systems, which
provide passengers with access to a far greater number of air
travel destinations through one or more flight connections.

Overall growth. The long-term market for passenger aircraft
depends primarily on passenger demand for air travel, which isitself primarily driven by economic or GDP growth, trade, farelevels and demographic growth. Measured in revenue passenger
kilometres, air travel increased in every year from 1967 to 2000,
except for 1991 due to the Gulf War, resulting in an average annual
growth rate of 7.9% for the period. Demand for air transportation
also proved resilient in the years following 2001, when successive
shocks, including 9/11 and SARS in Asia, dampened demand.

The chosen system of route networks in turn affects aircraft
demand, as hubs permit fleet standardisation around both
smaller aircraft types for the short, high frequency and lower
density routes that feed the hubs and larger aircraft types forthe longer and higher density routes between hubs, themselves
large point-to-point markets. As deregulation has led airlines
to diversify their route network strategies, it has at the sametime therefore encouraged the development of a wider rangeof aircraft in order to implement such strategies.

At the end of 2008 and in 2009, the financial crisis and global
economic difficulties witnessed resulted in only the third period ofnegative traffic growth during the jet age, and a cyclical downturn
for airlines in terms of traffic (both passenger and cargo), yields
and profitability. Despite these perturbations, the market
recovered, driven by the underlying demand for air transport.
After 2009 until the current crisis, the industry benefited from a
prolonged period of stability which enabled airlines to collectively
deliver profitability at historically high levels.

Airbus, like others in the industry, believes that route networks
will continue to grow through expansion of capacity on existing
routes and through the introduction of new routes. These newroute markets are expected to be well served by the Airbus
product offering, such as the A350 XWB and A330neo. Airbus
believes that it is well positioned to meet current and future
market requirements given its complete family of products.

The fundamental drivers behind the need for air transport remainunchanged, as a means for enabling physical links between
peoples and distribution of goods at a global scale. However it isan activity which must be conducted in a sustainable manner, andAirbus is committed to pioneering sustainable aviation. As moregovernments pass legislation to drive towards net-zero emissionsof carbon dioxide, aviation will play its part. Decarbonisation
is likely to be encouraged by regulatory measures including
incentives and taxation to varied extents in different regions. This
may increase the differentiation between the costs of operationof more or less fuel-efficient aircraft. There is speculation as to1

whether increased ticket prices might dampen future growthof passenger demand. There is no historical precedent for this,although past increases in fuel prices have been largely passed
through to consumers. Airbus is focused on providing more fuelefficient aircraft for fleet replacement and growth.

Once the air transport industry rebuilds after the COVID-19
crisis, airlines will review their positioning and business models
in the frame of restructuring their operations. Airbus expects
that existing networks will in the most part be continued, but
airlines will also have the opportunity to develop their networks
differently having undergone a forced, temporary downsizing.
The availability from 2023 onwards of new-generation longerrange single-aisle aircraft such as the A321XLR will provide
greater optionality to airlines.
Alliances. The development of world airline alliances has
reinforced the pattern of airline network development describedabove. According to data from Cirium, a UK-based aviation

Airbus / Registration Document 2021

33

1. Information on the Company’s Activities /1.1 Presentation of the Company

industry consultancy, one-third of the world’s jetliner seats
being flown today are operated by just 15 airlines. In the 1990s,
the major airlines began to enter into alliances that gave eachalliance member access to the other alliance members’ hubs androutings, allowing airlines to concentrate their hub investments
whilst at the same time extending their product offering andmarket access.

Market Structure and Competition
Market segments.
Airbus competes in each of the four principal market segments
for aircraft with more than 100 seats.
“Small” aircraft, such as the A220 and A320 Families, having 100
to more than 200 seats, and which are used principally for shortrange and medium-range routes of up to 3,000 nautical miles.
“Medium” aircraft typically offer up to 300 seats on routes of up
to 5,000 nautical miles. This includes long range versions of theA321, such as A321XLR, as well as the A330 Family.
“Large” aircraft, such as the A350XWB, are widebody twinaisle which seat more than 350 passengers on routes of up to
10,000 nautical miles.
Freight aircraft, which form a fourth, related segment, are a
combination of new build and converted ex-passenger aircraft.
Converted aircraft are prevalent in the expanding e-commercemarket which typically sees relatively low aircraft utilisation. Thiscan provide an economical “second life” for in-service aircraftfrom the A320 and A330 families. See “– Airbus Canada,
Regional Aircraft, Aerostructures, Seats, Aircraft Conversion– EFW”. In 2021, Airbus launched a new A350F freighter modelin response to customer demand. The addition of a freighter
variant is also expected to contribute towards greater resilienceof the A350 Programme to future market fluctuations.
Airbus also competes in the corporate, VIP business jet market
with the ACJ. The ACJ portfolio is composed of the ACJA319neo,
the ACJA320neo, the ACJA330neo and the ACJA350. To
complete the ACJ family, Airbus launched, in October 2020,
the ACJ TwoTwenty. The first aircraft has been handed over to
a competition centre and entry into service is targeted for 2023.
Geographic differences. The high proportion of single-aisle
aircraft in use in both North America and Europe reflects the
predominance of domestic short-range and medium-range
flights, both from the expansion of the low-cost carrier andparticularly in North America due to the development of hubs
following deregulation. In comparison with North America andEurope, the Asia-Pacific region uses a greater proportion of twinaisle aircraft, as populations tend to be more concentrated in
fewer large urban centres. The tendency towards the use of twinaisle aircraft is also reinforced by the fact that many of the region’s
major airports limit the number of flights, due to environmental
concerns or the infrastructure constraints that limit the ability toincrease flight frequency. These constraints necessitate higher
average aircraft seating capacity per flight. However, Airbus
believes that demand for single-aisle aircraft in Asia will growover the next 20 years, particularly as domestic markets in China
and India and low-cost carriers continue to develop in the region.
Competition. Airbus has been operating in a competitive
duopoly since Lockheed’s withdrawal from the market in 1984
and Boeing’s acquisition of McDonnell Douglas in 1997. As a34

Airbus / Registration Document 2021

result, the bulk of the market for passenger aircraft of more than
150 seats have been manufactured by either Airbus or Boeing.
Nevertheless, the high technology and high value nature of thebusiness makes aircraft manufacturing an attractive industry inwhich to participate, and besides Boeing, Airbus faces international
competitors. Embraer, who originally was primarily focused on theregional market, has also focused on the development of larger
airplanes. Additionally, other competitors from Russia, Japanand China will enter the 70 to 150 seat aircraft market over the
next few years, and today some studying larger types. China is
progressing with the development of the COMAC C919.
In February 2020, Airbus SE, the Government of Québec
and Bombardier Inc. agreed upon a new ownership structure
for the A220 programme, whereby Bombardier transferred
its remaining shares in Airbus Canada Limited Partnership(Airbus Canada) to Airbus and the Government of Québec.
This agreement brings the shareholdings in Airbus Canada,
responsible for the A220, to 75% for Airbus and 25% for theGovernment of Québec respectively. The Government’s stake isredeemable by Airbus in 2026 – three years later than before. Aspart of this transaction, Airbus, via its wholly owned subsidiary
Stelia Aerospace, acquired the A220 and A330 work package
production capabilities from Bombardier in Saint-Laurent,
Québec.
The partnership brings together two complementary productlines, the A220-100 and A220-300, targeting the 100-150 seatmarket segment with an addressable market of at least 7,000
new aircraft over the next 20 years in the segments in which
they compete.
Airbus Canada benefits from Airbus’ global reach, scale,procurement organisation and expertise in selling, marketingand producing the A220. Significant production efficiencies are
anticipated by leveraging Airbus’ production ramp-up expertise.
In August 2019, Airbus started manufacturing the A220 also in
Airbus’ facility in Mobile, delivering its first US-assembled A220300 aircraft in October 2020.

Customers
As of 31 December 2021, Airbus had 434 customers and a totalof 20,883 aircraft had been ordered, of which 13,801 aircraft
had been delivered to operators worldwide. The net backlog
stood at 7,082 aircraft.
The table below shows Airbus’ largest commitments in terms of
total gross firm orders by customer for the year 2021 (minimum
30 units).
Customers

Firm orders(1)AIR LEASE CORPORATION116

WIZZ AIR102

FRONTIER AIRLINES

91

UNITED AIRLINES70

JET2 PLC

57

DELTA AIR LINES55

VOLARIS

41

AVIATION CAPITAL GROUP

40

AVOLON30(1) Options are not included.

1. Information on the Company’s Activities /1.1 Presentation of the Company

1

Products
The Family Concept – Commonality acrossthe Fleet
Airbus’ aircraf t families promote fleet commonality.
This philosophy takes a central aircraft and tailors it to create
derivatives to meet the needs of specific market segments.
For example, both variants of the A220 have a significant levelof common parts and can be operated by a single pilot pool.
Alternatively, the A320, A330, A350 and A380 all share thesame cockpit philosophy, fly-by-wire controls and handlingcharacteristics, enabling pilots to transfer among theseaircraft within the Airbus family with minimal additional training.
Cross‑crew qualification across families of aircraft provides
airlines with significant operational flexibility. In addition, theemphasis on fleet commonality permits aircraft operators torealise significant cost savings in crew training, spare parts,
maintenance and aircraft scheduling. The extent of cockpit
commonality within and across families of aircraft is a uniquefeature of Airbus that, in management’s opinion, constitutes asustainable competitive advantage.
In addition, technological innovation has been at the core of
Airbus’ strategy since its creation. Each product in the Airbus
family is intended to set new standards in areas crucial toairlines’ success, such as cabin comfort, cargo capacity
performance, economic performance, environmental impact

and operational commonality. Airbus innovations often provide
distinct competitive advantages, with many becoming standard
in the aircraft industry.
A220 Family. Complementing the A320 Family, the A220-100
and A220-300 models cover the segment between 100 and 150
seats and offer a highly comfortable five-abreast cabin. With themost advanced aerodynamics, carbon fiber reinforced polymer(CFRP) materials, high-bypass Pratt & Whitney PW1500G
engines and fly-by-wire controls, the A220 delivers 25% lower
fuel burn per seat compared with previous generation aircraft. In
addition to the airliner versions, 2020 saw the launch of the ACJ
Two Twenty business jet, based on the A220-100, combining anintercontinental capability of over 12 hours flight duration withunmatched personal space and comfort. Airbus manufactures,
markets and supports A220 aircraft under the Airbus Canada
Limited Partnership agreement (q.v.) finalised in 2018. In 2020,
Airbus delivered the first US-assembled A220-300 aircraft from
Mobile, Alabama.
Primary competitors to the A220 Family are the Embraer
EMB190-E2 and EMB195-E2 and the Boeing 737 Max 7.
During 2021, Airbus received 64 gross orders for the A220
Family of aircraft and 38 net orders, with 50 aircraft having beendelivered.

A220 FAMILY TECHNICAL FEATURES
Model

Entry-into-service

Typical seating(1)Range (km)Length (metres)

Wingspan (metres)

A220-1002016

100 to 120

6,390

35.0

35.1

A220-300

2016

120 to 150

6,297

38.7

35.1

(1) Two-class layout.

A320 Family. With more than 16,000 aircraft sold, and over
10,000 delivered by the end of 2021, the A320 Family of singleaisle aircraft includes the A319 and A321 derivatives, as well as
the ACJ corporate jet. Each aircraft in the A320 Family shares
the same systems, cockpit, operating procedures and crosssection.
At 3.95 metres diameter, the A320 Family has the widest
fuselage cross-section of any competing single-aisle aircraft.
This provides a roomy six-abreast passenger cabin, a highcomfort level and a spacious under floor cargo volume. The
A320 Family incorporates digital fly-by-wire controls, anergonomic cockpit and a modern structural material selection.
The primary competitor is the Boeing 737 series.
Airbus continues to invest in improvements across the productline, as exemplified by the development of the A320neo family,
including the A319neo, A320neo, A321neo and ACJ variantsof the A319neo & A320neo. The A320neo Family incorporate
many innovations including latest generation engines andcabin improvements which together deliver up to 20% in fuelsavings compared with earlier A320 family aircraft. The A320neo
with Pratt & Whitney engines was the first variant to receive
Type Certification, from EASA and FAA, in November 2015,
followed by the A320neo with CFM engines in May 2016.

The A321neo with Pratt & Whitney engines received Joint
Type Certification in December 2016 and with CFM engines
in March 2017. Type Certification for the A319neo with CFM
engines was achieved in December 2018 with the Pratt &Whitney engine variant the following year.
The A320neo Family versions have over 95% airframe
commonality with the A320ceo (current engine option) versions,enabling them to fit seamlessly into existing A320 Family fleets– a key factor for Airbus customers and operators. All orders
for the A318ceo have been met and a full transition to the Neovariants of the other models is nearing completion. Continuing
support for the large in-service A320ceo fleet is undiminishedas new opportunities arise, including those in the developing
passenger-to-freighter conversion market.
Recognising a market requirement for increasing range
capability, the A321neo has been developed to incorporate
additional flexibility in cabin configuration with optional design
weight and fuel capacity enhancements to produce the
4,000nm range capable A321LR. In 2019, Airbus launched theA321XLR, combining single-aisle efficiency with widebody range
and comfort, and resulting in an unmatched product offering for
all operator types in the key mid-range market area.

Airbus / Registration Document 2021

35

1. Information on the Company’s Activities /1.1 Presentation of the Company

Since its launch in December 2010, the A320neo Family hasreceived 7,895 firm orders from more than 100 customers, witha total of 2,076 aircraft delivered to the end of 2021. A320neo
deliveries commenced in February 2016 followed by the first
A321neo in April 2017 and in August 2019 the first A319neo.

Overall, the A320neo family retains an approximate 60% market
share of the backlog against the Boeing 737 MAX Family.
During 2021, Airbus received 661 gross orders for the A320
Family of aircraft and 437 net orders, with 483 aircraft having
been delivered.

A320 FAMILY TECHNICAL FEATURES
Model

Entry-into-service

Typical seating(1)Range (km)Length (metres)

Wingspan (metres)

A319

1996

110 to 140

6,850

33.8

35.8(2)

A320

1988

140 to 170

6,200

37.6

35.8(2)

A321

1994

170 to 210

5,950

44.5

35.8(2)

A319neo2019 (ACJ)

120 to 150

6,760

33.8

35.8

A320neo2016

150 to 180

6,390

37.6

35.8

A321neo2017

180 to 220

7,400

44.5

35.8

180 to 220

8,700

44.5

35.8

A321XLR(1) Two-class layout.
(2) with sharklets.

A330 Family. With 1,839 aircraft sold (of which 353 A330neo)
and 1,464 delivered, the A330 Family covers all market
segments with one twin-engine aircraft type and is designed totypically carry between 220 and 300 passengers in three-classconfigurations or over 400 passengers in high-density. The A330
Family offers high levels of passenger comfort as well as large
under-floor cargo areas. The A330-200 version is also offered
as a military platform and as a cargo variant. A passenger-tofreighter conversion is offered by the ST Engineering / EFW
partnership for both the A330-200 & A330-300, meeting thelogistical needs of the rapidly growing e-commerce market.

The competitors of the A330 Family are the Boeing 767,
777 and 787 aircraft series.
The latest evolution of the A330 Family is the A330neo(new engine option), comprising the A330-800 and A330-900
versions. These aircraft incorporate latest generation Rolls-Royce
Trent 7000 engines and enhanced aerodynamics for improved
fuel efficiency. The first flight of the A330-900 took place in
October 2017 and both Type Certification and first delivery wereachieved in 2018, with TAP Air Portugal taking delivery of its first
three A330-900s during the year. Certification and first deliveryof the A330-800, to Kuwait Airways, took place during 2020.

A330 FAMILY TECHNICAL FEATURES
Model

Entry-into-service

Typical seating or payload(1)Maximum range (km)Length (metres)

Wingspan (metres)

A330-200

1998

210 to 250

13,45058.8

60.3

A330-200F

2010

61 tonnes

7,400

58.8

60.3

A330-3001993

250 to 290

11,750

63.66

60.3

A330-800neo

2020

220 to 260

15,09458.8

64.0

A330-900neo

2018

260 to 300

13,33463.7

64.0(1) Three-class configuration.

A350 XWB Family. The A350 XWB is a family of wide-bodyaircraft, designed to typically accommodate between 300 and
410 passengers. The A350 XWB offers enhanced cabin features,
Rolls-Royce Trent XWB engines, advanced aerodynamics andsystems technology, with more than 50% composite materials
in the fuselage structure. The A350 XWB’s main competitors
are the Boeing 787 and 777 aircraft series. Initial delivery of theA350-900 variant took place in December 2014 to Qatar Airways.
With the Ultra-Long Range (ULR) version of the A350-900
launched in 2015, the A350 XWB demonstrated its versatility byoffering the capability to perform flights of up to 19 hours. The first
A350-900 ULR was delivered in September 2018 to Singapore
Airlines. Highlighting the type flexibility, Airbus delivered the first
A350-900 Domestic to Japan Airlines during 2019.

36

Airbus / Registration Document 2021

Partnering the A350-900 is the seven metre longer A350-1000,
which was delivered to its first customer, also Qatar Airways, inFebruary 2018. Offering additional capacity for both passengers
and cargo without compromising on range, the A350-1000 is theideal replacement for previous generation aircraft in the 350-400
seat capacity market.
In 2021, Airbus launched the A350F freighter offering three
tonnes more payload and more range than a competing 777F.
With unbeatable efficiency in terms of fuel burn, CO2 emissions
and economics, the A350F is the only freighter capable ofmeeting the latest ICAO requirements.
At the end of 2021, the total orders for the A350 XWB Familystood at 917 aircraft, including 11 for the A350F. With 461 aircraft
having been delivered, including 55 during the year, the backlog
stood at 456 aircraft.

1. Information on the Company’s Activities /1.1 Presentation of the Company

1

A350 XWB FAMILY TECHNICAL FEATURES
Model

Entry-into-service

Typical seating or payload(1)Maximum range (km)Length (metres)

Wingspan (metres)

A350-9002014

300 to 350

15,00066.8

64.8

A350-1000

2018

350 to 410

16,10073.8

64.8

109 tonnes

8,700

70.8

64.8

A350F
(1) Three-class layout.

A380. The double-deck A380 is the world’s largest commercial
aircraft flying today. Its cross-section provides flexible andinnovative cabin space, tailored to the needs of each airline.
The aircraft is capable of carrying over 500 passengers in a
comfortable four-class configuration over a range of 8,000nm /14,800km.

In February 2019, following a review of its operations, Emirates
announced the intention to reduce its A380 order book. As aconsequence and given the lack of order backlog with otherairlines, the final five deliveries of the A380 took place during
2021.

A380 TECHNICAL FEATURES
Model

Entry-into-service

Typical seating(1)Maximum range (km)Length (metres)

Wingspan (metres)

2007

400 to 550

14,80072.7

79.8

A380-800(1) Four-class layout.

Customer Services
Customer Services’ primary mission is to secure safe andefficient aircraft operations thanks to a wide range of customer
centric and value-added services.
In 2021, the worldwide economy and air travel industry showedsigns of traffic recovery with an average increase in the numberof flight cycles of +19% vs 2020 according to IATA, however still-25% below 2019.
Together with the growing aircraft operators’ appetite forsolutions to further optimise, digitalise and decarbonise theiroperations, Airbus aftermarket saw an improvement in the
demand for existing and new products and services.
Here are some examples:–– Recovering number of Airbus Flight Hour Services (FHS) andcabin upgrades deals;–– Extension of the Skywise Digital Alliance with Delta Airlines toGE, offering combined fleet management solutions;–– Launch of the Mission+, an integrated solution providing pilots
all information they need in one single application on a globecentric display, including electronic navigation charts, mission
management, weather depiction as well as performance andoperational manuals;–– Launch of the Beluga transport services for outsized freightunder the umbrella Airbus Transport International (ATI)
subsidiary;–– MoU signature between Airbus the city of Chengdu andTarmac Aerosave for the development of the first sustainableaircraft “life cycle” service centre in China. This agreement
covers a range of activities from aircraft parking and storage,
to maintenance, upgrades, conversions, dismantling andrecycling services for various aircraft types.
In 2022, Airbus Customer Services priority will be to keepaccompanying and supporting its customers in the safe andefficient return back to service and ramp-up of their activities.

To do so, a range of solutions are available to help reduce
customers´ operating costs, increase aircraft availability,and enhance the quality of their operations and passenger
experience.
With a worldwide network of 7,000 employees (including
subsidiaries) made up of hundreds of technical specialists who
provide Airbus’ customers with advice and assistance 24 hours
a day, seven days a week; 250 field service representatives
positioned in over 100 cities worldwide for on-site assistanceto our operators and system of empowered local teams in Asia,
Africa, China the Middle East and the US; Airbus targets toremain at the forefront of the industry.
To succeed in this context, Airbus Customer Services willcontinue working on the transformation plan started before thecrisis through optimisation and simplification of our products
and further industrialisation of activities to decrease costs andincrease efficiency; becoming a relevant contributor to thefinancial success of Airbus.

Aircraft Leasing Trading and Financing
Airbus favours cash sales, and does not envisage customer
financing as an area of business development. However, Airbus
recognises the commercial need for manufacturers to assist
customers in arranging financing of new aircraft purchases, andin certain cases to also participate in the financing, particularly
during a time of crisis.
Extension of credit or assumption of exposure is subject tocorporate oversight and monitoring, and follows strict standardsof discipline and caution. Airbus’ dedicated customer financeteam has accumulated decades of expertise in aircraft finance.
When Airbus finances a customer, the financed aircraft generally
serves as collateral, with the engine manufacturer participating in
the financing. These elements assist in reducing the risk borne
by Airbus. The difference between the gross exposure resulting
from the financing and the collateral value is fully provisioned for

Airbus / Registration Document 2021

37

1. Information on the Company’s Activities /1.1 Presentation of the Company(for further information, please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 27: Sales Financing
Transactions”). Airbus’ customer financing transactions aredesigned to facilitate subsequent sell-down of the exposure to
the financial markets, third-party lenders or lessors.
In 2021, Airbus continued to benefit from market appetite for both
aircraft financing and sale and leaseback lessor opportunities,
supported by a sustained level of liquidity available in the market.
Airbus customer financing exposure remained limited in 2021
and in 2020 and decreased compared to 2019. Airbus willcontinue to provide direct aircraft financing support as it deems
necessary. Management believes, based on its experience, thatthe level of provisioning protecting Airbus from default costs is
adequate and consistent with standards and practice in theaircraft financing industry. See “– Risk Factors – Financial Market
Risks – Sales Financing Arrangements”.
In 2020, Asset Management, Leasing Market and Customer
Finance merged to create the Aircraft Leasing Trading and
Financing department. The asset management activity is now
managed by the Trading commercial team with support from
Portfolio / Operations and Project Management / Technical andServices teams.
Trading activity has not changed substantively and it continues
to consist mainly in (i) supporting new aircraft sales campaigns
through the trading (cradle to grave) and the placement of all
types of used aircraft (for cash or lease), (ii) assisting Airbus
entities/internal departments in finding/placing aircraft assets
on the market (iii) managing and assisting in the remarketingof inventory aircraft and (iv) acting as remarketing agent foran airline/financier to remarket its aircraft. Trading activity also
involves the sell down of leases, loans (secured and unsecured)and design of structured lease solutions with customers’ credits.
Finally, it also provides a full range of services, including
assistance with entry-into-service, interior reconfiguration andmaintenance checks.

Operations
Industrial Organisation
Airbus’ industrial organisation reflects the end-to-end industrial
flow in single-aisle and wide-body value streams respectively.
Production flows from the supply chain, through constituent andmajor component (wing, forward and aft fuselage, and nose andcentre fuselage) assembly through to final assembly in Toulouse,
Hamburg, Tianjin and Mobile. Aircraft are then handed over toprogramme management for delivery to customers. The industrial
flow is secured by Quality and enabled by Procurement as well
as four transverse functions responsible to provide the skills,
standards and services necessary for (1) smooth industrial
planning, logistics and transport, (2) integrated manufacturing
engineering, (3) eradication of non-quality, and (4) highest
operational excellence and sound performance management.
The Procurement organisation is responsible for both thecontractual and operational relationship with the supplier base.
Its aim is to ensure that purchased parts and services aredelivered at the most competitive conditions, on time, cost andquality. A dedicated Procurement Operations team manages thedelivery stream from the supply chain in accordance with theagreed conditions to enable the production flow.

38

Airbus / Registration Document 2021

The Quality First initiative launched in the second half of 2019
in Hamburg, with a strong focus on standards and quality gate
adherence, was further deployed in 2020 leading to improved
quality gate performance along both value streams. The Quality
function ensured the granting in 2020 of all necessary EASA
certification, POA, DOA, MOA and EN9100 accreditations
through compliance to our internal standards and processes
and associated audits.
This way of working along end-to-end value streams promotes
a strong sense of collaboration in the service of customers, aswell as reactivity and agility with the highest safety and quality
standards.
In 2021, the achievement of 611 commercial aircraft deliveries
was made possible thanks to the performance of our Airbus’
global production facilities in Europe, the US, Canada andChina. The COVID-19 crisis has demonstrated the importanceof proximity to Airbus’ customers especially in face of travel
restrictions.
Airbus is now preparing for the future aircraft demand by enablinga bigger share on A321 delivery capabilities.
2021 delivery performance and rate evolution:–– A220 family: 50 A220 delivered. The A220 monthly production
rate at five per month at the end of 2021. The rate is targeted
to increase to around rate six per month in early 2022, witha monthly production rate of 14 envisaged by the middle ofthe decade.
–– A320 family: 483 deliveries achieved. Airbus is on its trajectory
to achieve rate 65 by summer 2023.
–– A330: 18 deliveries achieved. Airbus expects to increase theA330 production rate, from around two to almost three aircraft
per month on average at the end of 2022.
–– A350: 55 deliveries achieved. Airbus expects to increase theA350 production rate from around five per month to around
six in early 2023.
–– A380: five deliveries achieved. The last A380 was delivered
end of 2021. Many A380s will continue to fly with Airbus’
support, for many years.

Engineering
Airbus Technology and Engineering is a global organisation thatdevelops civil aircraft and aircraft components, and in-service
aircraft modifications and that conducts innovative research
applicable to the next generation of aircraft and services. The
team operates transnationally, with most engineers employed in
France, Germany, the UK and Spain. A population of experienced
aerospace engineers was also employed worldwide at five otherengineering centres in Wichita (Kansas, US), Mobile (Alabama,
US), Moscow (Russia), Bangalore (India) and Beijing (China) at
the end of 2021.
The organisation has a strong delivery focus in support of today’s
programmes as well as future developments and it is structured
as follows. The Centers of Competences (CoC) provide skilled
resources to work on tasks, develop methods and tools, andgenerate solutions on topics related to airframe, systems,
flight physics, propulsion, cabin and cargo. The architect andintegration centre ensures, together with a team of senior
aircraft architects and the programme chief engineers, that a
consistent and multi-disciplinary approach is applied during
aircraft development. The strategy and transversal integration
centre ensures consistency between engineering and corporate

1. Information on the Company’s Activities /1.1 Presentation of the Company

strategy, acts as the referent for configuration management,
process, methods and tools for engineering, and drives theforward looking transformation of the function.
Research & Technology activities continue to deliver incremental
innovations for existing aircraft, matured breakthroughtechnologies, with reinforced focus on industrial aspects. For
further information, see “– 1.3 Other Corporate Activities”.

Airbus Canada, Regional Aircraft,
Aerostructures, Seats, Aircraft
Conversion
Airbus Canada Limited Partnership
Airbus Canada Limited Partnership (“Airbus Canada”) has been
established on 1 July 2018 following the transaction between
Airbus, Bombardier and Investment Quebec. In February 2020,
Bombardier exited the partnership. At the end of 2021, theAirbus Canada shareholding structure was 75% Airbus and 25%
Investment in Quebec. By the end of 2021, Airbus Canada had
approximately 2,500 employees.
Airbus Canada has developed a family of all-new design
efficient aircraft with two products: the A220-100 and theA220-300. The A220-100 is a solution for opening new routes
with urban and challenging operations. The A220-100 has
typical seating between 100 and 120 passengers and a range
of approximately 6,400km. The A220-300 is well suited to be
one of the best network feeders. The A220-300 has typicalseating between 120 and 150 passengers and a range ofapproximately 6,300km. Both aircraft deliver 25% lower fuel burnper seat than previous generation aircraft, half the noise footprint,
and decreased emissions. In addition to the airliner versions,in 2020 Airbus Canada has launched the ACJ TwoTwenty,
creating a new business jet market segment by offering anintercontinental capability of over 12 hours flight duration withunmatched personal space and comfort.
In 2021, Airbus Canada has delivered 50 aircraft (compared
to 38 aircraft in 2020) and has a backlog of 475 aircraft as ofDecember 2021. Through the end of December 2021, 193 A220
have been delivered.
Industrial Footprint: A220 has two final assembly lines, one in
Mirabel and one in Mobile.

ATR
ATR (Avions de Transport Régional) is a world leader in themarket for regional aircraft up to 90 seats. Its aircraft has 200
operators in 100 countries. ATR is an equal partnership between
Airbus and Leonardo, with Airbus’ 50% share managed by Airbus
ATR organisation. Headquartered in Toulouse, ATR employs
about 1,600 people. Since the start of the programme in 1981,
ATR has registered net orders for 1,788 aircraft (513 ATR 42s
and 1,275 ATR 72s).
In 2021, following the impact of the COVID-19 crisis on ATR
customers’ markets, ATR delivered 31 new aircraft (compared
to 10 in 2020) and recorded net firm orders for 22 new aircraft(compared to 14 in 2020). As of 31 December 2021, ATR had abacklog of 167 aircraft (compared to 176 in 2020).

1

Products and Services
ATR 42 and ATR 72. ATR has developed a family of highwing, twin turboprop aircraft in the 30- to 78-seat market
which comprises the ATR 42 and ATR 72, designed for optimal
efficiency, operational flexibility and comfort. Like Airbus, theATR range is based on the family concept, which provides forsavings in training, maintenance operations, spare parts supply
and cross-crew qualification. The ATR 72-600 is the lowest seat
per mile cost aircraft on the 70 seat segment.
In 2020, the ATR72 freighter has been developed, since thenATR achieved the delivery of six ATR72-600F to FedEx Express(one in 2020 & five in 2021).
Finally, the Company’s aircraft family is being extended with thedevelopment of the 42-600S. With the “S” representing Short
Take-Off and Landing (STOL), this new version of the ATR 42-600
offers take-off and landing capabilities on runways as short as
800m with 40 passengers on board in standard flight conditions.
In order to complete the short-term product evolution, ATR isalso coupling the PW 127 XT new turboprop to this ATR 42-600s
version. The PW 127 XT will be available over 2022 for both ATR
72-600 and ATR 42-600.
Customer service. ATR has established a worldwide customer
support organisation committed to supporting aircraft overtheir service life. Service and training centres and spare parts
warehouses are located in Toulouse, Paris, Miami, Singapore,
Bangalore, Auckland, Sao Paulo and Johannesburg. ATR
worldwide presence also includes representative offices in
Beijing and Tokyo.
ATR Asset Management addresses the market for second-handaircraft by assisting in the placement and financing of used andend-of-lease aircraft.

Production
The ATR fuselage is produced in Naples, Italy, and ATR
wings are manufactured in Merignac near Bordeaux, France.
Final assembly takes place in Saint Martin near Toulouse on
the Airbus commercial aircraft production site. Flight-testing,certification and deliveries also occur in Toulouse. ATR outsources
certain areas of responsibility to Airbus, such as wing design
and manufacturing, flight-testing and information technology.

Airbus Atlantic
As of 1 January 2022, Airbus Atlantic is a wholly-owned
subsidiary of Airbus, gathering forces, resources and meansof Airbus Nantes and Montoir-de-Bretagne plants, central
functions associated to these activities and STELIA Aerospacesites worldwide.
Counting 13,000 employees in five countries and three continents,
Airbus Atlantic is the new world n°2 player in aerostructures
market, n°1 in pilot seats and in the top 3 for premium passenger
seat marketed under the STELIA Aerospace brand.
Positioned at the heart of Airbus industrial system, Airbus
Atlantic aims at delivering state-of-the-art quality and operational
excellence to Airbus and to aircraft manufacturers such as
Dassault Aviation, Bombardier and ATR, as well as to worldwide
airlines with its premium passenger seat range.

By the end of 2021, ATR has delivered 1,621 aircraft.

Airbus / Registration Document 2021

39

1. Information on the Company’s Activities /1.1 Presentation of the Company

Relying on its aerostructure, pipes and ducts, cabin interior andpilot seat divisions:–– Airbus Atlantic has a wide range of metallic and composite
aerostructure capabilities, from Build-to-Print to Design & Build
solutions, including fully equipped and tested aircraft sections;–– Airbus Atlantic designs, develops and manufactures bended
and welded pipes and ducts covering all ATA systems;–– Airbus Atlantic designs and manufactures luxury First Class
and Business Seats for key partners in the world including
Lufthansa, Singapore Airlines, China Airlines, Air France or
Etihad Airways;–– Airbus Atlantic provides cockpits and pilot seats, and offers
support from design to production, including after-sales
service;–– Airbus Atlantic’s mission is to drive competitiveness withthe flexibility, speed, simplicity and agility of an aerostructure
Tier-1.

Elbe Flugzeugwerke GmbH – EFW

Premium AEROTEC

EFW has been the excellence center for Airbus conversions formore than 25 years and re-delivered 200 converted aircraft of
the first Airbus conversion programme (A300/A310) to over 40
customers worldwide, thereof the largest Express carriers inNorth America and Europe but also renowned General Freightand Combination Carriers.

Premium AEROTEC, a wholly owned subsidiary of the Company,
is one of the world’s leading tier-1 suppliers of commercial andmilitary aircraft structures and is a partner in the major European
international aerospace programmes.
Its core business is the development and production of large
aircraft components from aluminium, titanium and carbon fiber
composites (CFRP). Premium AEROTEC is Europe’s no. 1 inthis segment with roughly 7,000 employees at various sites inGermany and Romania. Premium AEROTEC is represented byits products in all Airbus commercial aircraft programmes. The
current military programmes include the Eurofighter “Typhoon”
and the military transport aircraft A400M.
In order to contribute successfully to the shaping of the future ofaviation, the engineers and developers at Premium AEROTEC
are continuously working on the new and further development oflightweight and highly durable aircraft structures. They cooperate
closely with universities and research institutes in the process.
Premium AEROTEC plays a significant role in the design of
new concepts in such fields as carbon composite technologies(including thermoplastic processes) or 3D-printing of aircraftcomponents made of titanium or aluminium.

40

EFW combines various aviation and technology activities undera single roof: development and manufacturing of flat fibrereinforced composite components for structures and interiors,
the conversion of passenger aircraft into freighter configuration,
maintenance and repair of Airbus commercial aircraft as well as
engineering services in the context of certification and approval.
On 17 June 2015, Airbus signed an agreement with Singaporebased ST Aerospace Ltd. (STA) to offer passenger-to-freighter(P2F) conversion solutions for its A320 and A321 aircraft. STA
acquired an additional 20% of the shares of EFW, Dresden(Germany) by way of a contribution in kind and a capitalincrease to EFW. The transaction closed on 4 January 2016.
Consequently, 45% of the shares of EFW were retained andAirbus effectively lost its control over EFW (previously reported
in Airbus).

Based on the latest freighter conversion programmes,
the A330P2F, A321P2F and A320P2F, EFW is driving thedevelopment of the Airbus freighter family.
By the end of 2021, in total 14 A330P2F have been re-delivered,after a modest start of this programme, the customer demandfor conversions of this wide body aircraft increased remarkably
during 2020 and over the past year, and has been supersedingby end of 2021 the conversion requests concerning the latest
single aisle programme of A321P2F which was entering themarket back in 2020.
After achieving the STC for the A321P2F in February 2020, the
FAA certification in July 2020, the world’s first A321P2F aircraft
has been delivered in September 2020 to launch customer Vallair
entering into service in October of that year and is since thanoperated by Qantas for Australia Post.
In 2021, four further A321P2F have been re-delivered.

Airbus launched in 2021 a project to place fuselage aerostructureassembly activities at the heart of Airbus’ production system.

By the end of 2021 EFW had secured well above 60 A321P2F
and above 90 A330P2F orders.

In Germany, end of January 2022, Airbus and social partners
have agreed to establish a company for state-of-the-art
aerostructures assembly. The aerostructure assembly of aircraft
fuselages, currently spread across the company and subsidiaries(of which Premium AEROTEC), are planned to be merged andfully integrated into the group as a core activity on 1 July 2022.

EFW is increasing the conversion capacity such that it is possible
to induct over 60 aircraft (approximately 30 A330s and A321s) for
conversions per year for the Airbus P2F programmes by 2024
meaning to treble capacity compared to 2021.

Airbus / Registration Document 2021

1. Information on the Company’s Activities /1.1 Presentation of the Company

1

1.1.3 Helicopters
Airbus Helicopters is a global leader in the civil and militaryrotorcraft market, offering one of the most complete and modern
range of helicopters and related services. This product range
currently includes light single-engine, light twin-engine, medium
and medium-heavy rotorcraft, which are adaptable to all kinds of
mission types based on customer needs. See “– 1.1.1 Overview”
for an introduction to Airbus Helicopters.

Ambition & Strategy
Airbus Helicopters continues to execute its ambition to lead
Helicopters and pioneer new VTOLs for a sustainable future.
The strategic priorities of Airbus Helicopters are:–– Customer Loyalty: Airbus Helicopters continues to deliver the
best-in-class products and services to grow in the value chainof its customers, continuously improve customer satisfaction
and speed up digital and technological transformation ofservice offering;–– Innovation & Sustainability: Airbus Helicopters continues
to build a sustainable innovative eco-system, mature technobricks for multiple platforms, develop collaborative innovations
for eVTOL and deploy demonstrators and disruptive concepts;–– Defence & Security: Airbus Helicopters continues to act asa global defence & security leader through a robust military
strategy product policy, as a preferred partner to homecountries, reinforcing military programmes’ attractivenessto address new markets and seizing sales campaigns
opportunities to continuously grow its military market share.

Transformation
The Company remains focused on aviation safety, quality andlead time to continuously improve customer satisfaction.
Airbus Helicopters continues to refine and execute its
transformation plan in order to maintain its competitiveness inthe face of market evolutions and retain its ability to invest in
the future.
Airbus Helicopters continues to deploy data governanceand accelerate its digital transformation based on standard
capabilities, and foster digital mindset and community of practice.
Airbus Values remain a model for its leaders and employees.

Commitment to Innovation
In 2021, Airbus Helicopters ramped up deliveries of its fivebladed H145, both new build and retrofits, for various mission
segments that the aircraft has been designed to address. The
Company also delivered the first version of the H160 to theJapanese operator All Nippon Helicopter, representing a major
milestone for this innovative helicopter.
At the beginning of the year, Airbus Helicopters started in-flighttests on board its helicopter Flightlab, a platform-agnostic flying
laboratory exclusively dedicated to maturing new technologies.
Airbus Helicopters’ Flightlab provides an agile and efficient test
bed to quickly test technologies that could later equip Airbus’
current helicopter range, and even more disruptive ones for
future fixed-wing aircraft or (e)VTOL platforms.

Airbus Helicopters intends to pursue the testing of hybrid andelectric propulsion technologies with its Flightlab demonstrator,
as well as exploring autonomy, and other technologies aimed
at reducing helicopter sound levels or improving maintenanceand flight safety.
Airbus Helicopters also made important steps towards
decarbonising its products, adopting a three-fold approach
using SAF, hybridisation, and electrification.
In order to drive the deployment of biofuels, Airbus Helicopters
has launched a SAF User Group dedicated to the rotary-wingcommunity. Airbus Helicopters has also started using SAF for
training and test flights at its French and German sites as the
majority of its product range is already certified to fly with a blendof up to 50% SAF. In November, an Airbus H225 performed thefirst ever helicopter flight with 100% SAF powering one of the
Safran Makila 2 engines. The flight, which took place at Airbus
Helicopters’ headquarters in Marignane, marks the start of aflight campaign aiming to assess the impact of unblended SAF
on the helicopter systems in view of certifying the use of SAF
blends that exceed today’s 50% limit.
Regarding hybridisation, Airbus Helicopters, in partnership with
the French Civil Aviation Authority DGAC, started flight testing anengine back-up system (“EBS”) onboard its Flightlab. The project
opens the way to a future hybridised propulsion system for lighthelicopters while delivering concrete flight safety improvementsin the short-term. The campaign’s main target is to enhanceflight safety of single engine operations by providing emergency
electrical power in case of a turbine failure. To conduct thesetests the Flightlab was equipped with a 100 KW electric motor
connected to the main gearbox, which can provide electrical
power for 30 seconds in the event of engine failure. By giving
the pilot extra time to react and maintain rotor speed, the engine
back-up system contributes to a safer and smoother autorotation
maneuver to the ground. The current flight tests include thesimulation of engine failure in different flight conditions, including
takeoff and landing procedures and corresponding limitations.
While evaluating the safety margins and performance benefits,
the flight campaign also aims to demonstrate a performanceincrease, thanks to the prompt electric power input. The potential
benefit in terms of Maximum Take-Off Weight is to compensate
for the mass of the EBS system itself and to provide helicopter
operators with additional payload.
At the Airbus Summit held in September 2021, the Company
announced its plans for CityAirbus NextGen as the emerging
UAM market begins to firm up. Benefitting from the lessons
learned from the two previous demonstrators, the fully electricvehicle is equipped with fixed wings, a V-shaped tail, and eight
electrically powered propellers as part of its uniquely designed
distributed propulsion system. It is designed to carry up to four
passengers in a zero emissions flight in multiple applications
with a 80 km range and a cruise speed of 120 km/h, making
it perfectly suited for operations in major cities for a variety of
missions. The prototype’s first flight is planned for 2023, paving
the way for certification as early as 2025.
On the military side, Airbus Helicopters and the French Armament
General Directorate (“DGA”) have launched the development of
the H160M and its associated support ecosystem in the frame of
the Joint Light Helicopter programme (Hélicoptère Interarmées

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1. Information on the Company’s Activities /1.1 Presentation of the Company

Léger (“HIL”)). The contract includes the development of several
prototypes and the delivery of a first batch of 30 aircraft (21 forthe army, 8 for the navy and one for the air force). The French
Ministry for the Armed Forces plans to order a total of 169 H160M
helicopters, or Guépard as it will be known in the French armed
forces. Deliveries will start in 2027 beginning with the French
Army.

The HDataPower pack is composed of a set of digital services
addressing our latest generation of helicopters: the H135, H145,
H175 and H160. It is designed to boost flight, airworthiness andmaintenance operations through easy-to-use digital solutions
leveraging data generated by helicopter systems, such as flightdata recorders and avionics systems (Helionix®), or maintenancesoftware and applications used to manage fleets.

The first of a new generation of helicopters, the H160M is derived
from the EASA-certified H160. It benefits from a low cost ofoperations and optimised flight safety. The H160 was designed
to be a modular helicopter, enabling its military version, with asingle platform, to perform missions ranging from commando
infiltration to air intercept, fire support, and anti-ship warfare inorder to meet the needs of the army, the navy and the air force.
To ensure a high level of availability while reducing operating
costs, the H160M’s support and services needs were taken
into account from early in its design phase. Innovative andsimplified, the H160M’s support is based on the exploitation ofdata through analytics. Airbus Helicopters will guarantee a highlevel of availability through an innovative maintenance contract.
Airbus Helicopters commits to an innovative managementof maintenance and aircraft availability through a dedicatedorganisation that has proven to be successful.

The HDataPower pack is aimed at supporting these Helionix®equipped helicopters at all steps of an operator’s journey, withan uninterrupted digital chain of solutions fully integrated with
Airbus Helicopters systems. It facilitates instant exchanges
across functions and organisations, optimises interactions infleet management while reducing human pressure and risks, andcuts workload and costs thanks to advanced analytics solutions.

Airbus Helicopters also made progress on the VSR700, its
fully-fledged unmanned aerial system (“UAS”), by pursuing its
flight envelope expansion test campaign in 2021. In April, theUAS performed a test flight that pushed its speed limit to 60kts(more than 110 km/h), entirely opening its flight envelope at low
speed. Thanks to this milestone, the VSR700 programme isgetting closer to its goal: providing the French Navy with a seademonstration-compatible UAS.

Focusing on Customers
Airbus Helicopters’ top priority from a customer support andservice perspective is to ensure its work results in the best
customer experience possible.
2021 saw the Division continue its work on digitalisation,
analytics and integrated global contracts with the roll-out of
two new offers: HCare Classics and HDataPower.
HCare Classics is a custom-made set of services for its legacy
fleet of approximately 2,000 in-service H120, Dauphin, Puma
and Gazelle helicopters. It is a customer-centric, results-based
approach that has been derived from customer feedback andis aimed at easing the lives of the 750 customers operatingthese aircraft. The package brings a collaborative approach
to fleet management, aiming to anticipate and treat issuesof obsolescence and aircraft longevity. The entirely neworganisational model behind the offer involves a dedicatedplateau that brings together contract managers (as the voiceof the customer) and product specialists, from design officeexperts to members of the supply chain.
Airbus Helicopters is investing both time and money to make its
supply chain for the legacy fleet more robust: significant budgets
are invested to reinforce the supply chain, buy-back of usedaircraft to source parts, committed production lead times tosecure the availability of parts, and a 24/7 worldwide AOG andspecialised parts transportation service. All aspects of legacy
helicopter operations are thus taken into account in a single
contract, with performance commitments related to services
that are performed by Airbus Helicopters.

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Through the digitisation and in-depth analysis of flight,
maintenance and logistics operations, the HDataPower packsets the stage for improvement and time savings, translating tohigher fleet availability, enhanced operational safety, optimised
costs and sustained asset value.

Aviation Safety
Airbus Helicopters’ chief priority is to enhance aviation safety
for the thousands of men and women around the world who aretransported in its aircraft every day. Airbus Helicopter’ ambition
is to further reduce the accident rate by of the Airbus helicopter
fleet in service. Airbus Helicopters also aims to be a leader inaviation safety.
In order to achieve these goals, Airbus Helicopters strives to:–– define and develop new safety measures and initiatives tosupport the operations of its customers;–– continue to mature the company-wide global aviation Safety
Management System (SMS).
This commitment to aviation safety is also reflected across all
theinternal activities related to the lifecycle of a helicopter, witha focus on meeting industry quality and safety standards, andgoing beyond when applicable. All this is based on continuously
enhancing the strong safety culture in the Company.

Market Drivers
According to market forecasts produced by Airbus Helicopters,
around 20,000 civil helicopters and 14,000 military helicopters
are expected to be built globally over the next 20 years.
The helicopter market has started to recover in 2021, but is
expected to remain a challenging environment due to persistenteconomic uncertainties lengthening sales cycle in particular inmilitary (budget allocation postponement or reduction), delayed
growth of emerging markets (especially in Asia) and the Oil &Gas downturn.
Helicopters sold in the civil and parapublic sector, where Airbus
Helicopters is a leader, provide transport for private owners andcorporate executives, offshore oil operations, diverse commercial
applications and state agencies, including coast guard, police,
medical and fire-fighting services. Thanks to its existing mission
segment diversity, the helicopter market (both platforms andservices activities) is expected to be resilient through the coming
decade, even though one of the key segments, Oil & Gas
continues to experience challenging conditions.

1. Information on the Company’s Activities /1.1 Presentation of the Company

The civil and parapublic market has seen a good recovery fromthe COVID-19 pandemic performing almost at pre-pandemic
level (582 units and € 2.8 billion in bookings). On top of thisrebound, the civil market has been boosted in particular in value
by a significant Russian order (around 130 units and € 1.3 billion).
EMS, public services, and PBA showed the greatest recovery
contributing to 85% of the civil and parapublic bookings. Airbus
Helicopters expects the civil and parapublic market to remainchallenging in the short-term but believes that the demand overthe next 20 years will be driven by large replacement needs fromadvanced economies and by growth from emerging countries(especially in Asia still largely under equipped).
Airbus Helicopters’ market data indicates that in 2021, worldwide
deliveries of civil and parapublic turbine helicopters of five seats
and above stood at 471 units.
Demand for military helicopters and related services is mainly
driven by budgetary and strategic considerations, and theneed to replace ageing fleets. Airbus Helicopters believes thatthe advanced age of current fleets, the emergence of a newgeneration of helicopters equipped with integrated systems andthe ongoing introduction of combat helicopters into many nationalarmed forces will contribute to increased military helicopter
procurement in the medium term. Nevertheless, demand fromthe military sector has historically been subject to large yearto-year variations due to evolving strategic considerations,and may be limited, due to budgetary constraints on public
spending in some regions like Western Europe and Middle
East, while other regions like Asia Pacific or Eastern Europe
are expected to continue to grow. Despite recent threats anda growing geopolitical instability, the increased economic
difficulties, the saturation of the Western countries markets, aswell as priorities given to operational needs (e.g., spare parts,
availability improvement), have resulted again in a low military
market in 2021. With 460 units booked (€ 9.1 billion), the military
market continues to experience lower bookings than before the
COVID-19 pandemic. According to Airbus Helicopters’ market
data, worldwide deliveries of military turbine helicopters hasreachedto 470 units in 2021 (478 units in 2020).

1

Competition
Airbus Helicopters’ primary competitors in the civil and parapublic
sector are Leonardo and Bell.
The civil and parapublic sector has seen more local competitors
in recent years (China, India, Japan, South Korea and Turkey).
Airbus Helicopters has maintained its leading market share(without considering the exceptional Russian order) in a more
dynamic market, with 59% in units in 2021, followed by Bell andLeonardo with respectively 16% and 15%.
Airbus Helicopters’ main competitors in the military sector
remain Sikorsky, Boeing and Russian Helicopters, thanks tolarge captive market and strong political support for export, butalso Leonardo especially in terms of value.
The military sector is highly competitive and is characterisedby major restrictions on foreign manufacturers’ access to thedomestic defence bidding process (i.e. US, China and Russia).
Thanks to major military campaigns (H135, H145M, HIL, H225M)
in 2021 Airbus Helicopters maintained a market share in this
sector of 16% in unit. The Division will continue to focus on large
military campaigns in 2022.

Customers
More than 3,000 operators currently fly Airbus Helicopters’rotorcraft in over 150 countries. Airbus Helicopters’ principal
military clients are Ministries of Defence (“MoDs”) in Europe,Asia, the US and Latin America. In the civil and parapublic sector,
Airbus Helicopters has a leading market share in Europe, theAmericas and Asia-Pacific.
With 52% of the worldwide market share-based on deliveries in
2021, the versatility and reliability of Airbus Helicopters products
have made them the preferred choice of the most prominent
civil and parapublic customers (turbine helicopters of five seats
and above).

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1. Information on the Company’s Activities /1.1 Presentation of the Company

Products and Services
Airbus Helicopters offers a complete range of helicopters that covers nearly the entire civil and military market spectrum, which it
continuously improves with leading-edge technologies. This product range includes single-engine, light twin-engine, medium andmedium-heavy helicopters, and is based on a series of new-generation platforms designed to be adaptable to both military andcivil applications. In addition, products share multiple technical features as part of a family concept approach.
The following table sets forth Airbus Helicopters’ existing product line, consisting of optimised products for different mission types:
Helicopter TypePrimary Missions

Single Engine (“Écureuil” family)
H125 “Écureuil” / H125M “Fennec”
H130

Public Services(1), Military Utility(2) & Armed Reconnaissance, Corporate /Private, Commercial Pax Transport & Aerial Work
Commercial Pax Transport & Multipurpose, Emergency Medical, Tourism, Corporate / Private

Light Twin Engine
H135 / H135M

VIP, Military Utility & Armed Reconnaissance, Emergency Medical, Public Services(1)H145 / LUH (UH-72) / H145M

VIP, Military Utility(2), Emergency Medical, Public Services(1)Medium (“Dauphin” family)
H160

Corporate / Private, VIP, Oil & Gas, Public Services(1)H175

Corporate / Private, VIP, SAR, Emergency Medical, Public Services(1), Oil & Gas

Medium-Heavy
H215 “Super Puma” / H215M “Cougar”
H225 / H225M

Civil Utility, Military Transport / SAR, Oil & Gas
SAR, Combat-SAR, Military Transport, Oil & Gas, VIP, Public Services(1)NH90 (TTH / NFH)

SAR, Military Transport, Naval

AttackTiger

Combat, Armed Reconnaissance / Escort(1) Public Services includes homeland security, law enforcement, fire-fighting, border patrol, coast guard and public agency emergency medical services.
(2) Civil Utility includes different kinds of commercial activities such as aerial works, electrical new gathering (ENG), passenger and cargo transport.

Civil Range
Airbus Helicopters’ civil range includes intermediate singleengine, light twin-engine, medium and medium-heavy
helicopters, which are adaptable to all mission types based on
customer needs. To maintain and strengthen its competitiveedge in the civil sector, Airbus Helicopters is maintaining R&D
investments including:–– certification of the H160 by EASA in July 2020;–– improvement of the existing range (i.e. H145 certified by EASA
in June 2020) in the field of performances and safety in order
to meet customer’s requirements;–– preparing the future H generation with major upgrades andnew products pursuing a fast-paced product range renewal.

Military Range
Airbus Helicopters’ military range comprises platforms derived
from its commercial range (such as the H145M and H225M
respectively derived from the H145 and H225) as well as purely
military platforms developed for armed forces (the NH90 and
the Tiger).
Designed for modern multi-mission capabilities and costeffectiveness throughout its lifecycle, the NH90 has beendeveloped as a multi-role helicopter for both tactical transport(TTH) and naval (NFH) applications. The programme, mainly
financed by the governments of France, Germany, Italy and theNetherlands, has been jointly developed by Airbus Helicopters,
Leonardo of Italy and Fokker Services of the Netherlands as joint

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partners in NATO Helicopter Industries (NHI) in direct proportion
to their countries’ expressed procurement commitments. Airbus
Helicopters’ share of NHI is 62.5%. There were 27 NH90 deliveriesin 2021, for a cumulative total of 468 deliveries as of the end of
2021. The NH90 fleet has accumulated ~329,000 flight hours.
On the Combat segment the Mark3 upgrade of the Tiger
helicopter will introduce state of the art mission systems, including
manned-unmanned teaming, new avionics and next generationof weapons (antitank/air to ground missile, laser guided rockets)in order to address future requirements of the French andSpanish armies. The launch of the Tiger Mark3 development
is targeted in 2022. A cumulative total of 185 Tigers have beendelivered by year-end. The Tiger fleet has accumulated morethan ~155,000 flight hours.
Airbus is also a major contractor to the US Army, having beenchosen to supply the service’s UH-72A Lakota helicopter.
As of 1 January 2022, 483 aircraft had been delivered to the
US Department of Defense for operation by US Army and Army
National Guard units, the Navy and foreign military sales buyers.

Customer Services
With more than 3,000 operators in over 150 countries, Airbus
Helicopters has a large fleet of some ~12,000 in-service rotorcraftto support. As a result, customer service activities to support
this large fleet generated 44% of Airbus Helicopters’ revenues
for 2021.

1. Information on the Company’s Activities /1.1 Presentation of the Company

Airbus Helicopters’ customer service activities consist primarilyof maintenance, repairs, spare parts supply, training andtechnical support. In order to provide efficient worldwide service,
Airbus Helicopters has established an international network of
subsidiaries, authorised distributors and service centres.

Operations Strategy
Implementing a new industrial model is one of the fundamental
components of the Division transformation, enabling it to be morecompetitive and to target industrial excellence, by controlling
costs and increasing the First Time Right rate (on all products
from legacy to new programmes) while meeting the highest
requirements in terms of quality and safety. The three pillars of
the new industrial model are site specialisation, a new industrial
architecture and the deployment of flexible assembly lines.
Specialised sites contribute to anchoring quality and safety
fundamentals while boosting Airbus Helicopters’ competitiveness.
Like many manufacturers, one of the objectives is to produce eachhelicopter sub-assembly at a dedicated site. This means that the
production sites are focused either on manufacturing operations
with high added value or with a specific technological content. A
good example of this transformation is the Paris-Le Bourget site,where all of Airbus Helicopters’ blade design, industrialisationand production activities will be concentrated. The specialisationof these sites makes it possible to avoid the duplication of skills
and industrial means.
Thanks to the redistribution of operations and economies ofscale, each site contributes to the optimised production of theentire range and becomes more resilient to market fluctuations.
The helicopter is divided into major sub-assemblies that can beproduced, assembled and tested in parallel, thus shortening theindustrial cycle. The H160 is designed to be assembled in just40 days thanks to this new architecture. Reducing end to end
cycles is a key driver of competitiveness as well as an answer
to customer requirements.

1

Rendering industrial system more modular through flexible
assembly lines is an additional means to enhance its competitiveedge on the market.
In a versatile market context, the Division’s assembly lines must
be able to assemble several different types of helicopters. This
multi-product capability will be a key factor in terms of flexibility.
The deployment of the new industrial model is well engaged withmore than 85% achieved at the end of 2021.
In addition to site specialisation, Best Cost Countries (BCC)
strategy is also an important stream of the Division’s industrial
transformation to improve our competitiveness. Airbus
Helicopters’ home plants are exclusively in high cost countries.
To improve our product cost in the make perimeter, the Divisiondevelops an allocation of work with complex technology to thehome plants and simple parts in BCC. This is being contemplatedwith a simplification of the supply chain. The main technologies
for BCC are aluminium airframe and mechanical parts. For
aluminium airframe, the factory in Mexico is fully operational since2020 and COVID-19 negative workload impact is expected to
be fully recovered in 2022. For mechanical parts, the Hungarian
project has been signed in 2020 and first sub-items will bedelivered in 2022.
In parallel to the industrial aspects, Airbus Helicopters Operations
is working to shape a competitive supply base with high industrial
performance to reduce missing parts and avoid disruptions.
Strong monitoring, anticipation and management of the Supply
Chain risks have been implemented to ensure business continuity.
To finish, Airbus Helicopters Operations is also working toshape what “Factory of the Future” could look like for eachplant / center of excellence in terms of products, processes &skills of tomorrow, digitalisation, connectivity and sustainability
performances.

1.1.4 Defence and Space
Airbus Defence and Space is a reliable partner to commercial
and governmental customers worldwide, whose products andservices ensure mission success across Air, Land, Sea, Space
and Cyber:–– Military Aircraft designs, develops, delivers and supports
military aircraft and systems. It is the leading fixed-wing military
aircraft supplier in Europe, and one of the market leaders forcombat, mission, transport and tanker aircraft worldwide. Key
products include the Eurofighter Typhoon, the A400M, theA330 Multi Role Tanker Transport (“MRTT”) and the C295;–– Unmanned Aerial Systems develops, delivers and operates
UAS solutions for defence and institutional missions;–– Space Systems covers a broad range of civil and military
space offerings. Its satellite solutions for telecommunications,
earth observation, navigation and science include spacecraft,
ground segments and payloads for institutional customers
as well as the export market. It also manufactures orbitaland space exploration systems. Space transportation
capabilities (comprising launchers and services) are offered
via ArianeGroup, a 50/50 Airbus-Safran joint venture;–– Connected Intelligence elaborates specific solutions for
defence, governmental, civil and commercial customers
under five main business clusters: Intelligence, Secure
Communications, Cyber Security, Special Security
programmes and Secure Land Communications.

Strategy
The strategic purpose of Airbus Defence and Space is to shapeand deliver sovereign Air and Space power for a secure andconnected world.
To achieve this, Airbus Defence and Space is applying its strategy
across three domains:–– Air Power: Airbus Defence and Space is leveraging
momentum in Franco-German-Spanish cooperation,
pursuing new European programme opportunities as it works
to deliver its vision for Future Air Power. Key opportunities
include Future Combat Air System (“FCAS”), Eurodrone andspecial mission aircraft, among others. Airbus Defence andSpace is also working to shape and address future secure,

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1. Information on the Company’s Activities /1.1 Presentation of the Company

upgradeable, and dynamic network along with Command andControl architecture requirements while continuing to evolve
existing platforms and capabilities (e.g. Eurofighter Typhoon,
A330 MRTT, A400M, C-295, predictive aircraft maintenance)
for long-term competitiveness to future force structures;–– Space: As Europe’s space leader, Airbus Defence and Space
will continue to create ever more competitive products,
working with European governments and institutions to ensure
the long-term health of the entire European space industrialbase. In tandem, Airbus Defence and Space will evolve its
product portfolio (i.e. equipment, satellites, vehicles andinfrastructure) and take a targeted approach to international
expansion. In parallel, Airbus Defence and Space is developing
end-to-end solutions and accelerating new products andservices to strengthen its position across the space value
chain. Conscious of the need to maintain a sustainable spaceenvironment, Airbus Defence and Space is also working incollaboration with international organisations on space debris
prevention;–– Information Superiority: Digital transformation and digitalplatforms will be a key enabler to unlocking greater value
from the Company’s portfolio while providing new data-driven
services and business models. The Division will continue toprovide imagery intelligence, aircraft in-service support andother services while striving to be a leader in end-to-end
secure connectivity across satellite, terrestrial, maritime andairborne networks and communication domains.
Globally, Airbus Defence and Space intends to leverage its
existing products and services, innovate new offerings, andstrike selected strategic partnerships in order to strengthen its
position in the US and other targeted international markets.

MarketAirbus Defence and Space is active in governmental, institutionaland commercial markets. As a general trend, defence budgets
in Europe are forecasted to continue to grow, triggered bygeopolitical reasons, heightened security risks, intensity ofnatural disasters in Europe, initiatives supporting strategic
autonomy and continuous development of domestic defence
industries. A fourth round of collaborative Permanent Structured
Cooperation (PESCO) projects has been launched, European
Defence Fund (EDF 2021) calls for proposals concluded, theEuropean Medium Altitude Long Endurance (“MALE”) drone
development programme progressed with the contract with
OCCAR signed on 24 February 2022, while FCAS negotiations
advance for the Demonstrator Phase 1B, and the full integrationof the Spanish industry is under way. In addition, EU Member
States have defined a number of projects in the frame of the
EU Recovery and Resilience Facility (RRF) that aim at building
and strengthening space capabilities. Together, this provides
sales opportunities in Europe. Market access outside the homecountries may be subject to restrictions or preconditions suchas national content, local industrial participation or the provisionof export licenses. Nevertheless, Airbus Defence and Space, in
conjunction with Airbus, is well-placed to benefit from growthin defence expenditure.

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Military Aircraft
Customers
The Military Aircraft Programme Line with its combat aircraft,military transport and mission aircraft, along with related services,
mainly supplies the public sector, specifically armed forces.
Customer relationships in this segment are characterised by theirlong-term, strategic nature and long decision-making cycles.
Once a contract is signed its life span, including considerable
services business, often lasts for decades. Beyond a strong
foothold in home countries, the customer base is increasingly
global, in particular due to the success of the A330 MRTT and
C295 programmes.
The volatile, uncertain and complex geopolitical situation is
gradually leading to a greater importance of defence in Europe.
The Franco-German declaration in summer 2017 and theestablishment of PESCO by the European Union on 11 December
2017 are also clear signals in this direction. During the FrancoGerman Defence and Security Council in October 2019, Franceand Germany committed to strengthen their cooperation.
Subsequently, the two countries signed the FCAS Phase 1A ofthe demonstrator phase in early 2020, while Spain joined theprogramme at the end of that year. FCAS has been evolving wellover the past three years, with the execution and achievementof the Joint Concept Study and the Demonstrator Phase 1A.
This led notably to the signing of the Common Operational
Requirements Document (CORD) in September 2021 by thethree Air Force Chiefs of Staff.
Airbus military aircraft such as A400M, MRTT, Eurofighter andother Airbus manned and unmanned platforms will play key rolesin the FCAS ecosystem.

Competitors
The market for military aircraft is dominated by large- andmedium- sized American and European companies capableof complex system integration. Among the competitive factors
are affordability, technical and management capability, andthe ability to develop and implement complex integrated
system architectures. In particular, dedicated mission aircraft
such as the heavy tankers, are derived from existing aircraft
platforms. Adapting them requires thorough knowledge of thebasic airframe, which generally only the aircraft manufacturer
possesses, along with knowledge of systems architecture andsystems integration. The skills necessary for the overall systems
integration into the aircraft are extensive and the number ofplayers in the world market is very limited.
The main competitors in military transport and mission aircraft
include Boeing, Embraer, Lockheed Martin, Northrop Grumman,
Dassault Aviation, Leonardo, UAC, Kawasaki, AVIC and Antonov.
Heavy military transport has historically been driven by US
policy and budget decisions, therefore has been dominatedby US manufacturers and split in strategic and tactical aircraft
segments. The A400M represents the Company’s entry into
this market, at a time when nations are expected to replace
their existing fleets. The aircraft is designed to disrupt thedifference between strategic and tactical transport by offeringboth capabilities in one. This saves both time and costs ascustomers can fly a long range strategic aircraft into a tacticalzone of operation.

1. Information on the Company’s Activities /1.1 Presentation of the Company

In terms of revenues, Airbus Defence and Space is the largest
combat aircraft manufacturer in continental Europe. The
major combat aircraft activities are taking place through thecontribution to the Eurofighter Typhoon programme, jointly withthe consortium partner companies BAE Systems and Leonardo.
Competitors in the segment of combat aircraft include Boeing,
Dassault Aviation, Lockheed Martin, Saab and UAC. Eurofighter
is a key asset and a capability bridge to FCAS.

Market Trends
The sale of aircraft is expected to remain stable in the transportand special mission aircraft segments and could grow for theheavy transport segment, where the A400M occupies a uniqueposition.
After-sales services are an important business for Military Aircraft
and are continuously growing in line with the deliveries of A400M
and A330 MRTT on top of the existing robust revenue stream
associated with Eurofighter in-service support. For FCAS, mainachievements were the successful delivery of a joint industrial
proposal to the governments of France and Germany for the
first Demonstrator Phase (Phase 1A) of the programme and thecompletion of the Joint Concept Study tranche one with theindustrial on-boarding of Spain towards the end of 2020.

Unmanned Aerial Systems
Customers
UAS solve challenges for commercial, government and militarycustomers alike.
There is notable momentum in Europe for cooperation inlarge UAS programmes. After the finalisation of Eurodrone
contractual negotations between Airbus and OCCAR in 2020,
Germany, France and Italy respective governments approved
the Eurodrone programme budget in 2021 followed by Spain’s
budgetary approval in January 2022. The contract was signed
by Airbus Defence and Space as industry prime, and by OCCAR
on behalf of the nations on 24 February 2022, which will lead tothe delivery of 20 Eurodrone systems, along with an initial fiveyear package of in-service support.
Eurodrone, the first European MALE, will see Airbus Defence
and Space as prime contractor, leading a European industrial
collaborative programme with the participation of Leonardo andDassault. Additionally, next generation air superiority programmessuch as FCAS will feature strong UAS components, spurring
the development of different types of Remote Carriers, andleveraging Manned-Unmanned Teaming (MUM-T) technologies.
This is underlined by an initiative from France, Germany andSpain.
Institutional and Government customers are recognising thebenefits of UAS for Public Services. An incremental number
of applications are requiring UAS solutions in areas such as
law enforcement, fire fighting, humanitarian assistance anddisaster relief, border protection or emergency services. Civil
and enterprise customer interest for UAS continues to grow,with the main focus being on smaller UAS.
Some customers may find a service and leasing model more
adapted to their specific needs. UAS services offer further
growth potential with different levels of flexibility and customer
involvement. Services encompass traditional leasing and flight
operations, as well as logistics, MRO and data analytics offers.

1Competitors
With regards to platforms, Chinese, Israeli and US firms arewell established in the UAS market segment, along with other
European companies such as BAE Systems, Leonardo andThales, which are competing for new European projects.
The market witnesses the emergence of new, smaller, companies
worldwide, addressing dedicated UAS or specific services areas.
There is room and need for synergies and partnerships between
smaller UAS companies and the larger UAS players.

Market Trends
While defence will remain the largest sector, civil and institutional
markets are growing steadily, especially in the smaller UAS
tactical categories. 2020 marked the confirmation of the needfor a European UAS in the MALE category. Markets will see somemovement, including new European collaborative programmes.
Services verticals will offer increasingly interesting prospects
as the market evolves. The governmental market especially forlarger and advanced UAS features strong growth with significant
opportunities in Europe, the US and Asia Pacific. Small andflexible UAS see wide application among armed forces and other
homeland security agencies alike.

Space Systems
Commercial Sector: Telecommunications
Satellites, Launch Services
The commercial telecommunication satellite market is highly
competitive – with customer decisions primarily based on price,technical expertise and track record. The main competitors fortelecommunications satellites are Boeing, Lockheed Martin,
MAXAR and Northrop Grumman in the US, Thales Alenia
Space in France and Italy and CASC in China. The commercial
geostationary telecommunications satellites market continues
to show signs of recovery. In parallel, the demand for large
constellations of smaller telecom satellites in Low Earth Orbit(LEO) has increased in the last few years. The business model
is challenging due to the high upfront CapEx. Airbus is active inthis market including direct involvement in the Airbus OneWeb
Satellites joint venture and taking the lead on an EU constellation
study.
In 2015, Airbus OneWeb Satellites was created, an equally owned
joint-venture between Airbus and OneWeb, which is building
a global high-speed internet constellation of satellites for its
sole customer, OneWeb. This participation is entrepreneurial
in nature and has led to a full re-think of satellite design andmanufacturing to produce at competitive costs and on relatively
short timelines. After a change in ownership in 2020, thecompany’s lead investors are now the Indian Bharti Groupand the UK government. Eight launches took place in 2021
meaning 60% of the first constellation is now in orbit and due
for completion in 2022. Moreover, OneWeb has clear ambitions
to create a second generation constellation.
With the new Bartolomeo Service, Airbus also offers onestop-shop access to flying payloads in Low-Earth Orbit on theoutside of the International Space Station (ISS), which means
easy access to Space for both commercial and institutionalcustomers. In 2021, Airbus announced the selection of ClimCam,an African climate monitoring project, to receive a free slot on
Bartolomeo.

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1. Information on the Company’s Activities /1.1 Presentation of the Company

The market for commercial launch services continues to evolvewith ongoing competitive pressure. Arianespace (a subsidiary of
ArianeGroup) provides a complete range of launch services with
the Ariane, Soyuz, and Vega launchers. Competitors for launchservices include SpaceX, ULA and national space agencies.
The accessible market to Arianespace for commercial launchservices for geostationary satellites is expected to be at around15-20 payloads per year, decreasing both in mass and in numberof launchers compared to the equivalent market back five-six
years ago. The commercial market also sees the rise of large
constellations for global connectivity, with the ramp-up of
OneWeb and other new projects both in the US and in Europe.

Governmental Sector: Satellites,
Space Infrastructure, Launchers, Deterrence
In the public market for Earth Observation (EO) and navigation
satellites, competition in Europe is organised on a nationaland multinational level, primarily through the European Space
Agency (ESA), the European Commission (EC) and national
space agencies.
Space Systems is the recognised European leader on ESA
science programmes, securing in 2021 a new contract for
the Ariel exoplanet mission. It is also a major player in the
EO segment, already on board of the 12 existing and future
Copernicus environment missions In addition, a new important
contract has been secured in 2021 to design and manufacture
six Galileo second generation satellites for Europe’s navigation
system. Decisions at the next ESA Ministerial Conference inNovember 2022 should trigger future European programmes inwhich Airbus Defence and Space does or may seek to participate.
There is also important export demand for EO systems, in which
the Company is the world’s leading provider. The export market
is expected to continue growing over the medium-term driven
by the demand coming from new governmental operators on
top of the replacement of existing assets.
The space exploration segment comprises scientific missions,with both crewed and uncrewed space systems, mainly used
for solar system exploration. Demand for space exploration
systems originates solely from publicly funded space agencies,
in particular from ESA, NASA, Roscosmos (Russia) and JAXA
(Japan). Such systems are typically built in cooperation withinternational partners.
The predominant field of activity on this segment is the continuing
support to the operations of the ISS, together with vehicle andequipment development programmes and services. Airbus
Defence and Space is the prime contractor for the Orion
European Service Module for NASA’s Artemis Moon-return
missions, securing in 2021 a contract for three additional
modules, bringing the total up to six. As the future explorationplans of the various national space agencies take shape with agrowing focus on a sustainable return to the Moon and further
Mars exploration, Space Systems is taking a leading role inproviding vehicles, platforms and services to support theseambitious endeavours.
On the military customer side, observation satellite demand has
increased in recent years.
There is an increasing demand in the governmental satcom
market at home and abroad. In addition to the players in thecommercial sector (see above), competition includes OHB in
Germany, IAI in Israel, Melco in Japan and ISSR and Energia
in Russia.

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The equipment segment has benefited from a stable European
market, with potential growth to come from developing spacecountries as well as the US.
ArianeGroup is the lead contractor for Europe’s Ariane 5
and Ariane 6 launcher families, responsible for designing,
manufacturing and marketing of launch services through its
subsidiary, ArianeSpace. It is also responsible of the research,
design, development and production of missiles for the French
nuclear deterrent force (French Strategic Oceanic Force).

Connected Intelligence
The Connected Intelligence activities cover secure connectivity,
data and intelligence, as well as cyber resilience for defence,
institutions and various security, maritime and commercial
customers.
The programme line is divided into five programme units:Intelligence, Secure Communications, Cyber Security, Special
Security programmes and Secure Land Communications.
Intelligence: provides data-driven systems, services andsolutions for fresh data and insights. Imagery is derived fromstate-of-the-art satellite constellations with a unique combinationof global revisit and high-resolution, such as Pléiades Neo.
Intelligence provides systems enabling command & control,
real-time data fusion and predictive analyses. It also offers
data-driven solutions for various commercial segments,
including environmental protection, as well as sovereign cloudinfrastructures for the defence segment.
Secure Communications: supplies governmental satellite
communications, offering multi-domain secure connectivity,
satellite connectivity systems and services for armed forces,
notably for UK, France, Germany and NATO, providing securecommunications at sea, on land and in the air.
Cyber Security: offer ranges from security operation centres,
incident response services, key management, cryptography andhigh-security national solutions, up to consulting and training
services. This programme unit has a strong track record inproviding reliable products and services to defence and security
customers in Europe.
Special Security Programmes: supports border security andthe delivery of site security services in Germany.
Secure Land Communications: supplies advanced
communication and collaboration solutions, enabling its
customers to gather, process and deploy intelligence. The
portfolio is tailored to answer the needs of public safety, industrial
and commercial customers.

Products and Services
Military Aircraft
A400M – Heavy military transport. The A400M is designed tobe the most capable new generation airlifter on the market today,
aiming to meet the needs of the armed forces worldwide andpotential operators for military, humanitarian and peacekeeping
missions in the twenty-first century. The A400M can perform thejob of three different types of military transport and tanker aircraftby providing different capabilities: tactical (short to medium range
airlifter capability with short, soft and austere field operating
performance), strategic transport (longer range missions foroutsized loads) and tactical tanker.

1. Information on the Company’s Activities /1.1 Presentation of the Company

A total of 176 aircraft have been ordered so far. This includes
the seven launch customer nations, Belgium, France, Germany,
Luxembourg, Spain, Turkey, the UK, as well as two export
customers, Malaysia, recently joined by Kazakhstan (two A400M
ordered in 2021). Additionally, Indonesia has signed a letter ofintent in 2021 to add air-to-air refuelling and heavy transport
capabilities to their legacy transport fleet (two A400M plus
four optional).
Type Certificate and Initial Operating Clearance were achieved in
2013. Since then, 105 units have been delivered to eight nations
as of 31 December 2021. The A400M has already been deployedin operations since 2014, accumulating more than 110,000 flight
hours in service. In 2019, a contract amendment was signedwith launch customers on the Global Rebaselining of the A400M
programme, under which all parties have agreed to update theproduction plan and revise the capability roadmap. NSOC 2.0
Type Acceptance by customers was achieved in 2020, followed
by NSOC 2.5 Type acceptance in 2021. The programme is now
delivering in line with the revised schedule, and moving forward
towards SOC3 (final development standard).
Multi-role tanker transport – A330 MRTT. The A330 MRTT,a derivative of the Airbus A330-200 family, offers military
strategic air transport as well as air-to-air refueling capabilities
at the same time. Its large fuel tank capacity (111t), a benefit ofthe design of the commercial platform, allows it to dispense
fuel in flight to many receiver aircraft without the need for
additional fuel tanks. This allows the entire lower deck cargo
bay compartment to be available for freight (up to 37t), with thepossibility to transport up to 27 standard civil LD3 containers,
or up to eight 436L military pallets as well as at the sametime the capacity to transport up to 300 troops in the upper
deck cabin compartment, with the high level of comfort of acivil airliner. The A330 MRTT is equipped with state of the art
refueling systems, including an Aerial Refueling Boom System(ARBS) and under-wing refueling pods and has demonstrated
wet contacts with the Automatic Air-To-Air Refuelling (A3R)
capability, for which certification is expected in 2022. At theend of 2021, 66 A330 MRTT have been ordered by 14 national
operators (more than 94% market share over the past ten years,
excluding the US), with 51 platforms already delivered andoperating worldwide, accumulating more than 250,000 flight
hours in operation.
By the end of 2021, in partnership with Lockheed Martin, theCompany answered a formal Request for Information for the
KC-Y programme of the United States Air Force, aiming at
the replacement of the USAF tankers. The formal Request for
Proposal process is expect to run over 2022.
Eurofighter combat aircraft. The Eurofighter multi-role combat
aircraft (also referred to as Typhoon) has been designed toenhance fleet efficiency through a single flying weapon systemcapable of fulfilling both air-to-air and air-to-ground missions.
The Eurofighter Jagdflugzeug GmbH shareholders are Airbus
Defence and Space (46% share), BAE Systems (33% share)
and Leonardo (21% share). With regard to series production,
the respective production work shares of the participating
partners within the Eurofighter consortium stand at 43% for
Airbus Defence and Space, 37.5% for BAE Systems and19.5% for Leonardo. Airbus Defence and Space develops andmanufactures the centres fuselage and the right wing and leadingedge slats for all aircraft, and is in charge of final assembly of
aircraft ordered by the German, Spanish and Austrian air forces.

1

In addition, Airbus Defence and Space is responsible for thedevelopment of the flight control system and the identificationand communication sub-systems.
At the end of 2021, 661 Eurofighter Typhoon aircraft had beenordered by nine customers (UK, Germany, Italy, Spain, Austria,
Saudi Arabia, Oman, Kuwait and Qatar), including the orderof 38 aircraft in November 2020 from Germany. By the endof 2021 a total of 573 aircraft were delivered. Additionally, in
December 2021 the Spanish government authorised the funds
for the procurement of new Eurofighters to replace the EF-18A
Hornets ageing fleet. Export opportunities are being actively
developed together with the other shareholders of the Eurofighter
consortium.
C295 – Light and Medium military transport/mission aircraft. The
C295 is the workhorse of tactical military transport, conducting
logistical missions including the transport and delivery of
personnel and cargo as well as medical evacuations. The aircraft
are deployed in demanding operational environments and havebeen used for humanitarian missions. The aircraft are also offered
as a dedicated mission aircraft with configurations beyond the
traditional airlifter version, for example maritime surveillance
and anti-submarine warfare, airborne early warning and control,
firefighting and intelligence surveillance reconnaissance (ISR),
among other missions. In service for more than 20 years,
this family of aircraft has proven to be robust, reliable, highperforming, efficient, flexible, easy to operate in any environment,
and with low operating costs. 279 orders have been recorded
for the C295 by 35 operators at the end of 2021, a year which
includes the historical signature with the Indian Air Force for 56
C295 to replace their legacy fleet.
Military Aircraft Services. Airbus Defence and Space offers
and provides various services for and related to military aircraft.
Throughout the life-time of our aircraft, Military Aircraft Services
includes integrated logistics support, in-service support,
maintenance and upgrades, along with training and flight hourservices. For example, the A330 MRTT contract with the UK
Ministry of Defence through the Air Tanker consortium includes
alongside 14 aircraft the provision for all necessary infrastructure,training, maintenance, flight management, fleet management
and ground services to enable the Royal Air Force to fly air-to-air
refuelling and transport missions worldwide. Services support
legacy aircraft beyond those types currently in production at
Airbus Defence and Space, conducting upgrade programmes foraircraft such as the Tornado and NATO E-3A (or AWACS). Airbus
Defence and Space maintains a network of Maintenance, Repair
and Overhaul centres strategically located throughout the world
for greater proximity to the customer, for example in Seville or
Manching in Europe, in Mobile, Alabama (US) or at subsidiaries
in Saudi Arabia or Oman. Supporting more than 1,600 aircraft
worldwide, the contribution of Services continues to grow, with
Ireland joining as the latest customer in the end of 2021.

Unmanned Aerial Systems
In the field of UAS, Airbus Defence and Space is active at bothproduct and service level, supplying robust and dependable
solutions for customers across military, commercial andinstitutional markets. Solutions span from stratospheric solar
powered High Altitude Platform Station (HAPS) to Tactical UAS.
The Zephyr is the world leading solar-electric stratospheric HAPS
offering uninterrupted persistence and flexibility. The Manned
Unmanned Teaming of Remote Carriers with Manned Platforms

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1. Information on the Company’s Activities /1.1 Presentation of the Company

is one of the pillars of the European FCAS. The European
MALE RPAS (Eurodrone), developed in a European industrial
collaboration will offer advanced strategic capabilities indemanding environments. The multi-mission SIRTAP offers
improved performance for high end tactical UAS. Furthermore,
Tactical UAS provides a full range of solutions with small fixed
wing UAS platforms, adapted to fulfil ISR missions across militaryand civil markets.
In addition to UAS platforms, Airbus Defence and Space offers
UAS services, supporting the German Air Force operationsin Mali, and FRONTEX, for surveillance operations in the
Mediterranean Sea. With 40 years experience, over 60,000
flight hours and 98% system availability, these services havedemonstrated a proven and unmatched success.

Space Systems
Human space flight. Airbus has played an important rolein human spaceflight, beginning with the Spacelab reusable
laboratory flown on the US Space Shuttle, followed by thedevelopment of the Columbus module for the International Space
Station (ISS), the Automated Transfer Vehicle (ATV) resupply
spacecraft that serviced ISS and most recently, the addition of
the Bartolomeo payload hosting platform, which the Company
operates as a service. Airbus’ expertise is also being applied
to the European Service Module (ESM) planned to equip Orion– the next US NASA spacecraft that will send humans into space:
Airbus has been selected by ESA as the prime contractor for thedevelopment and manufacturing of six ESMs with the first one
to fly on NASA’s Artemis I mission in early 2022.
Telecommunication satellites. Airbus Defence and Space
produces telecommunication satellites used for both civil andmilitary applications, such as television and radio broadcasting,fixed and mobile communication services and Internet broadband
access. Airbus is leading the transformation of the telecoms
market with its truly disruptive OneSat product that marks a stepchange, from both a manufacturing and operational point of view.
It enables Airbus to offer customers a market enabling solution
at reduced cost and time to orbit. Airbus has six OneSats undercontract, three for Inmarsat for the first of their next generationof geostationary Ka-band satellites, Inmarsat GX 7, 8 & 9, one
OneSat for Optus, the Australian operator who ordered Optus-11
in July 2020 – with an option for an additional order – and two
OneSats for Intelsat signed in December 2020. Airbus also
secured two contracts for its all-electric Eurostar Neo platform
in 2020, with the Thuraya and Arabsat operators.
Observation and scientific / exploration satellites. Airbus
Defence and Space supplies EO satellite systems including groundinfrastructures for both civil and military applications. Customers
can derive significant benefits from the common elementsof Airbus Defence and Space civil and military observation
solutions, which allow the collection of information for various
applications, such as cartography, weather forecasting, climate
monitoring, mineral, energy and water resource management, as
well as military reconnaissance and surveillance. Airbus Defence
and Space’s satellite-based services are essential in supporting
sustainable agriculture. They provide insights enabling reductionin the use of Nitrates, and play a significant role in helping agroindustrials like Ferrero or Nestlé monitor adherence to their
non-deforestation commitments. Satellite imagery also provides
targeted information for disaster relief efforts, either through theDisasters Charter or the Copernicus Emergency services, tosupport rescue operations.

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Airbus Defence and Space also produces scientific satellites andspace infrastructure, which are tailor-made products adapted
to the specific requirements of the mostly high-end missions
assigned to them. Applications include astronomical observationof radiation sources within the Universe, planetary explorationand Earth sciences. Airbus Defence and Space designs andmanufactures a wide range of highly versatile platforms, opticaland radar instruments and equipment. For example, Airbus
Defence and Space is on board all 12 Copernicus Environment
missions past and future and in 2020 it launched the Sentinel-6
Ocean monitoring satellite that is part of this, the world’s
largest climate monitoring programme. On the science side, as
prime contractor, Airbus is currently manufacturing the JUICE
spacecraft, ESA’s next life-tracker inside the Solar System. JUICE
will study Jupiter and its icy moons. In 2020 it also secured acontract for the Earth Return Orbiter, the spacecraft that will
return the first ever samples from Mars under the NASA-ESA
Mars Sample Return programme.
Navigation satellites. Airbus Defence and Space is playing anactive role in the current Galileo programme with a nearly 50%
work share, including the ground control segment and providing
the payloads for the first 22 satellites through its subsidiary SSTL.
Airbus is prime contractor for EGNOS V3, the next generationof the European Satellite Based Augmentation System (SBAS)
planned to provide the aviation community with advanced Safetyof Life services and new services to Maritime and Land users.
Space Products. Airbus Defence and Space serves theworldwide market with space products through its own Airbus
brand as well as the brands Jena-Optronik and TESAT. Space
Products offers an unmatched and extensive portfolio ofembedded subsystems, equipment and services for all typesof space applications: telecommunications, EO, navigation,scientific and space exploration missions, manned spaceflightand launchers.
Launch services. Airbus Defence and Space is active in thefield of launch services through its ArianeGroup joint venture.
ArianeGroup is responsible for the coordination and programmemanagement of civil activities of the launcher business andrelevant participations that have been transferred. ArianeGroupowns a total 74% stake in Arianespace, 46% of Starsem and 51%
of Eurockot, providing a complete range of launch services with
the Ariane, Soyuz, Vega and Rockot launchers.
Commercial launchers. ArianeGroup manufactures launchersand performs research and development for the Ariane
programmes. Member States, through ESA, fund the development
costs for Ariane launchers and associated technology. Airbus
Defence and Space has been the sole prime contractor for the
Ariane 5 system since 2004. In December 2014, the Ariane 6
programme was decided by the ESA ministerial conference with
an approval of the joint Airbus Defence and Space and Safran
concept. In addition, a new industrial set-up was announcedwith the creation of ArianeGroup between the two main Ariane
manufacturers. This vertical integration secures the future by
cutting costs and being more competitive. Ariane 6 is now
targeted to be launched in 2022.
French deterrence systems. ArianeGroup as prime contractor
holds the contracts with the French State for the submarinelaunched deterrence system family.

1. Information on the Company’s Activities /1.1 Presentation of the Company

Connected Intelligence

Operations/EngineeringIntelligence is recognised as a world leader in geospatial data
provision and defence intelligence. It is a global supplier ofcommercial satellite imagery; the No. 1 European supplier ofland command and control solutions as well as a lead supplierof ISR and Air Defence solutions to France, Germany and NATO.

Airbus Defence and Space is headquartered in the Munich
region. The main engineering and production facilities of theDivision are located in France (Paris region and southwest
France), Germany (Bavaria, Baden-Württemberg and Bremen),
Spain (Madrid region and Andalusia) and the UK (southern
England and Wales). In addition, Airbus Defence and Space
operates a global network of engineering centres and offices inmore than 80 countries.

Intelligence manages one of the world’s largest satellite fleets,with radar and optical sensors, and resolutions ranging from25cm to 22m. In addition, the two first Pléiades Neo satellites
were launched into orbit in 2021 and are now operational, with
two additional ones to be launched mid-2022 to complete theconstellation. This will enable it to offer 30cm resolution images
with intraday revisit capabilities. Furthermore, the Constellation
Optique 3D (CO3D) is currently being developed to deliver 50 cm
resolution imagery across the world on a daily basis, scheduled
for launch from 2023.
Secure Communications is the European leading provider of
secure communications services, bringing together the mostcomprehensive satellite communications services and systems,
and best-in-class secure network services and solutions. It
provides governments, military forces and International Agencies
with mission-critical voice and high-speed data communications
on land, at sea and in the air. One example is the UK “Skynet
5” programme, where Airbus Defence and Space delivers
tailored end-to-end in-theatre and back-to-base communication
solutions for voice, data and video services, ranging from asingle voice channel to a complete turnkey system incorporating
terminals and network management. This contract, pursuant towhich Airbus Defence and Space owns and operates the UK
military satellite communication infrastructure, allows the UK
MoD to place orders and to pay for services as required.
Cyber Security provides companies, critical national infra­
structures and government and defence organisations withreliable, high-performance products and services to detect,analyse and respond to increasingly sophisticated cyber-attacks.
The market growth is driven by an exponential increase incyber-attacks, the continuous digital transformation in all typesof organisation and the increased use of connected assets.
Customers belong to both the public and private sector, including
companies with high grade security requirements.
Secure Land Communications provides advanced mobile
communication and collaboration solutions with the highest
standards of security and reliability. These include voice,messaging and multimedia sharing solutions based on Tetra,
Tetrapol and Broadband (4G/5G) technologies. The programme
unit provides networks, applications, dispatchers, terminals,
accessories and services. Among the key achievements for
Secure Land Communications in 2021 are the progress madein the Middle East with Aramco in Saudi Arabia, the Tactilon
Agnet collaboration solution being used at World Expo in
Dubai, and the preparation of the Qatar World Cup. In AsiaPacific, results are positive, especially in China with more than
20 networks won for the metro. In Europe, several contracts
including Tactilon Agnet were signed as well, for instance inFinland and Spain.

1

MBDA
The Company’s missile business, derives from its 37.5% stake in
MBDA (a joint venture between the Company, BAE Systems andLeonardo). MBDA offers missile systems capabilities that cover
the whole range of solutions for air dominance, ground-based
air defence, maritime superiority and battlefield engagement.
Beyond its role in European markets, MBDA has an establishedpresence in export markets like Asia, the Gulf region and Latin
America.
The broad product portfolio covers all five principal missile system
categories: air-to-air, air-to-surface, surface-to-air, anti-ship
and surface-to-surface. MBDA’s product range also includes aportfolio of airborne countermeasures such as missile warningand decoy systems and other customer support activities.
The most significant programmes currently under development
are the next generation of the successful MICA air-to-air missile(Missile d’interception, de combat et d’autodéfense), the SPEAR
3 missile (Selected Precision Effects at Range Capability 3),
the precision attack Brimstone 3 missile, the CAMM-ER missile(Common Anti-Air Modular Missile Extended Range), theAnglo‑French joint initiative for a FC/ASW (Future Cruise/AntiShip Weapon), the development of Anti‑ship weapons for thetwo nations, as well as the battlefield engagement MHT missile(Missile Haute Trame).
Recent product upgrades also include the Aster Block 1 NT
(New Technology), the air & missile defence systems for France
and Italy, the Sea Venom/ANL (Anti-Navire Léger) missile for thehelicopters of the UK and French navies, as well as the Enforcer/
MMP (Missile Moyenne Portée) missile for the battlefield.
Further activities include the preparation of hypersonic and directenergy applications/systems for future programmes such as
FCAS and Tempest, the production of various aircraft packages
for the Eurofighter Typhoon and Rafale existing programmes(including ASRAAM, MICA NT, and Meteor BVRAAM), as wellas the production of various packages for frigates and corvettes
systems/missiles (including Aster B1, CAMM, VL MICA, MarteER and Otomat).

ArianeGroup
Airbus Defence and Space is active in the field of launchers andlaunch services through its ArianeGroup joint venture, whichprior to July 2017 was named Airbus Safran Launchers (ASL).

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1. Information on the Company’s Activities /1.1 Presentation of the Company

1.1.5 Investments
Dassault Aviation
In 2013, the Company entered into an agreement with the French
State pursuant to which the Company:–– grants the French State a right of first offer in case of the saleof all or part of its shareholding in Dassault Aviation; and–– commits to consult with the French State prior to making any
decision at any shareholders’ meeting of Dassault Aviation.

The Company holds 9.90% of Dassault Aviation’s share capital.
The Company has also issued a euro-denominated exchangeablebonds into Dassault Aviation shares, which matured in June
2021. For further information, please refer to “Notes to the IFRS
Consolidated Financial Statements – Note 36.3: Financing
Liabilities”.

1.1.6 Insurance
The Company’s Insurance Risk Management function (“IRM”)
is established to proactively and efficiently respond to risks thatcan be treated by insurance techniques. IRM is responsible forall corporate insurance activities and related protection for theCompany and is empowered to deal directly with the insurance
and re-insurance markets via the Company’s inhouse broker
entity. IRM’s continuous task in 2021 was to further implement
and improve efficient and appropriate corporate and projectrelated insurance solutions.
IRM’s mission includes the definition and implementation of
the Company’s strategy for insurance risk management tohelp ensure that harmonised insurance policies and standards
are in place for all insurable risks worldwide for the Company.
A systematic review, monitoring and reporting procedure
applicable to all Divisions is in place to assess the exposure andprotection systems applicable to all the Company’s sites. The
Company’s insurance programmes cover high risk exposuresrelated to its assets and liabilities.
Asset and liability insurance policies underwritten by IRM for
the Company cover risks such as property damage, businessinterruption, cyber, aviation and non-aviation general and productliability. IRM also provides a Group insurance policy for Supervisory
and Managing Board Members and certain other employeesof the Company. The Company follows a policy of seeking totransfer the insurable risk of the Company to external insurance
markets at reasonable rates, on customised and sufficient terms
and limits as provided by the international insurance markets.
A difficult global corporate insurance environment remained in
2021 due to the COVID-19 pandemic situation the corporate
insurers have maintained their underwriting strategy for large
corporations, however, Airbus’ positive outlook allowed todifferentiate the impact on insurance policies.
The insurance industry and the COVID-19 impact on the
Company’s risk remain unpredictable and most Group insurance
policies are renewed on an annual basis. There may be further
demands to change scope of coverage, premiums anddeductible amounts. Thus, no assurance can be given that theCompany will be able to maintain its current levels of coverage
nor that the insurance policies in place are adequate to cover
all significant risk exposure of the Company.

1.1.7 Legal and Arbitration Proceedings
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, the Company
is not aware of any material governmental, legal or arbitration
proceedings (including any such proceedings which are pendingor threatened) which may have or have had in the recent pastsignificant effects on Airbus SE’s or the Company’s Financial
Position or profitability.
Regarding the Company’s provisions policy, the Company
recognises provisions for litigation and claims when(i) it has a present obligation from legal actions, governmental
investigations, proceedings and other claims resulting from past
events that are pending or may be instituted or asserted in the
future against the Company, (ii) it is probable that an outflow

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Airbus / Registration Document 2021

of resources embodying economic benefits will be required tosettle such obligation and (iii) a reliable estimate of the amountof such obligation can be made. Although the Company believes
that adequate provisions have been made to cover current orcontemplated general and specific litigation and regulatory
risks, no assurance can be provided that such provisions will
be sufficient. For the amount of provisions for litigation andclaims, please refer to the “Notes to the IFRS Consolidated
Financial Statements – Note 24: Provisions, Contingent Assets
and Contingent Liabilities”.
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.

1. Information on the Company’s Activities /1.1 Presentation of the Company

Investigation by the UK SFO, France’s PNF,
US Departments of State and Justice andRelated Commercial Litigation
The Company reached final agreements (“the agreements”)
with the French Parquet National Financier (“PNF”), the UK
Serious Fraud Office (“SFO”), and the US Department of Justice(“DoJ”) resolving the authorities’ investigations into allegationsof bribery and corruption, as well as with the US Departmentof State (“DoS”) and the DoJ to resolve their investigations into
inaccurate and misleading filings made with the DoS pursuant
to the US International Traffic in Arms Regulations (“ITAR”). The
agreements were approved and made public on 31 January
2020.
Under the terms of the agreements, the Company agreed to
pay penalties of € 3,597,766,766 plus interest and costs to the
French, UK and US authorities. This was recognised in the
Company’s 2019 accounts. The settlements with each authority
were as follows: PNF € 2,083,137,455, the SFO € 983,974,311,
the DoJ € 526,150,496 and the DoS € 9,009,008 of which€ 4,504,504 May be used for approved remedial compliancemeasures. All penalties have been paid.
Under the terms of the Convention judiciaire d’intérêt public(“CJIP”) with the PNF, the Company has an obligation to submit
its compliance programme to targeted audits carried out by
the Agence Française Anticorruption (“AFA”) over a period of
three years.
Under the terms of the Deferred Prosecution Agreement (“DPA”)
with the SFO, no independent compliance monitor will be
imposed on the Company in light of the continuing monitorshipto be conducted by the AFA.
Under the terms of the DPA with the DoJ, no independent
compliance monitor will be imposed on Airbus under theagreement with the DoJ, but the Company will periodically reporton its continuing compliance enhancement progress during
the three year term of the DPA and carry out further reviews asrequired by the DoJ.
The agreements result in the suspension of prosecution fora duration of three years whereupon the prosecutions will
be extinguished if the Company complies with their terms
throughout the period.
Under the terms of the Consent Agreement with the DoS, the
DoS has agreed to settle all civil violations of the ITAR outlinedin the Company’s voluntary disclosures identified in theConsent Agreement, and the Company has agreed to retain an
independent export control compliance officer, who will monitor
the effectiveness of the Company’s export control systems andits compliance with the ITAR for a duration of three years.
Any breach of the terms of the agreements by the Company
could lead to rescission by the authorities of the terms of theagreements and reopening of the prosecutions. Prosecution
could result in the imposition of further monetary penalties orother sanctions including additional tax liability and could havea material impact on the Financial Statements, business andoperations of the Company.
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 could1

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

Securities Litigation
In August 2020, a putative class action lawsuit was filed in US
federal court in the state of New Jersey against Airbus SE andmembers of its current and former management. The Company
was served with the complaint in the fourth quarter of 2021.
The lawsuit was brought on behalf of alleged shareholders thatpurchased or otherwise acquired Airbus SE securities in the US
between 24 February 2016 and 30 July 2020, and asserts violationsof US securities laws. The complaint alleges that defendants madefalse and misleading statements or omissions concerning, among
other things, the Company’s agreements approved on 31 January
2020 with the French PNF, the UK SFO, the US DoJ and the US
DoS as well as the Company’s historic practices regarding the useof third party business partners and anti-corruption compliance.
The lawsuit seeks unquantified damages.
In addition, the Company received notification in August 2021 of
two separate claims alleging similar facts as the US class action.
Two claims have been filed in the Netherlands purportedly onbehalf of Airbus investors.
The first Dutch claim was filed in August 2021 by a special purpose
vehicle incorporated under the laws of Guernsey, an assignee
purportedly representing numerous private shareholders andinstitutional investors, seeking a declaratory judgment withdamages to be assessed in follow on proceedings. This claim
is now pending before the Amsterdam District Court.
The second Dutch claim was filed in December 2021 following
a demand letter sent by a foundation incorporated under thelaws of the Netherlands, a purported representative of unnamed
institutional and retail investors worldwide, starting a class action
against the Company before the Dutch courts. This second
Dutch claim targets the Company, certain of the Company’s
current and former directors and officers, and the Company’s
current and former auditors. A procedural hearing is scheduled
for the second quarter of 2022.
Both claims allege that the Company violated its reporting
obligations by failing to adequately inform investors and providing
false or misleading information about its use of intermediaries
and alleged corrupt practices, its related financial exposure,internal investigations and subsequent measures taken by theCompany, and related criminal investigations, which allegedly
impacted the Company’s share price.

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53

1. Information on the Company’s Activities /1.1 Presentation of the Company

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

Air France Flight 447 Trial
On 1 June 2009, an A330 operated by Air France flight AF447
from Rio de Janeiro to Paris disappeared over the Atlantic
Ocean with 228 persons onboard. The wreckage was locatedin April 2011 after several search campaigns organised by the
Bureau d’Enquêtes et d’Analyses (BEA), which published its final
investigation report in July 2012. In the wake of the accident,
the prosecutor in Paris opened an investigation for involuntarymanslaughter and Airbus SAS was charged in March 2011.
In September 2019, the investigating magistrates closed theinvestigation and dismissed all criminal charges after a thoroughanalysis of the technical and legal elements of the case. However,the Paris Court of Appeal overturned the magistrates’ decisionand ordered trial for involuntary manslaughter. The Company’s
appeal to the French Supreme Court has been dismissed. The
trial is scheduled to take place in the fourth quarter of 2022. The
criminal trial in the Paris Criminal Court and any judgment or
decision unfavourable to the Company could result in damage
to its business or reputation.

Qatar Airways Commercial Litigation
Citing surface degradation on some of its A350 fleet and alleging
an underlying “design defect”, Qatar Airways filed a legal claim
against the Company in the London Commercial Court on
17 December 2021. The claim seeks (a) liquidated damages
for aircraft grounded by the Qatar Civil Aviation Authority, (b)an order that Airbus must deliver a full root cause analysis forsurface degradation issues, and (c) a declaration by the court

54

Airbus / Registration Document 2021

that Airbus may not deliver any further A350 aircraft to Qatar
Airways until alleged “design defects” are cured. The Company
rejects Qatar Airways’ mischaracterisation of the non-structural
surface degradation and the attendant grounding of the aircraft,which underpin the claim. Accordingly, the Company will
defend itself vigorously in the proceedings. The consequencesof such litigation and the outcome of the proceedings cannot
be fully assessed at this stage, but any judgment or decision
unfavourable to the Company could have a material adverse
impact on the Financial Statements, business and operationsof the Company as well as its reputation.

Other Investigations
The Company is cooperating fully with the authorities in a judicial
investigation in France related to Kazakhstan. In this spirit, theCompany was interviewed by the investigating magistrates
and has been granted the status of “assisted witness” in theinvestigation.
The Company is also cooperating fully with the authorities in a
judicial investigation in France related to Libya. In this spirit, theCompany has responded voluntarily to requests for information.
In 2019, the Company self-reported to German authorities
potentially improper advance receipt and communicationof confidential customer information by employees of Airbus
Defence and Space GmbH. The information concerned relates
to future German government procurement projects. The selfdisclosure by the Company followed an internal review withthe support of an external law firm. Both the German Ministryof Defence and the Munich public prosecutor opened aninvestigation into the matter. The investigation could have an
impact on Airbus Defence and Space GmbH’s and Airbus Secure
Land Communications GmbH’s ability to participate in future
public procurement projects in Germany. In 2021 the Munich
prosecution issued a penalty notice against Airbus Defence andSpace GmbH for € 10 million for negligent violation of supervisory
duties in connection with this matter. The Company continues
to fully cooperate with relevant authorities.

1. Information on the Company’s Activities /1.2 Non-Financial Information

1

1.2 Non-Financial Information
1.2.1 The Company’s Approach to Sustainability
PurposeThe Company’s purpose is to pioneer sustainable aerospace
for a safe and united world. It aims to lead the way in the
decarbonisation of the aerospace industry, to unite andsafeguard the citizens of the world, and continually expand
human knowledge of our universe, from critical events on earth
to the exploration of space. To this aim, the Company designs,
manufactures and delivers aerospace products, services andsolutions to customers on a worldwide scale bringing essential
value to society and contributing to the UN Sustainable
Development Goals (“SDGs”) through its core business andhow it runs it.
First of all, the Company connects. Connections are vitalto making the world a better place. That’s why the Company
unites people and organisations across the globe; physicallywith its commercial aircraft and helicopters; and virtually with its
connectivity solutions, allowing them to connect and understandeach other.
The Company serves communities. Its satellites and tracking
systems help make oceans safer with solutions that monitor andprotect naval routes and maritime assets. Company-built aircraft
are instrumental in firefighting, in maintaining energy systems andpublic safety. Its helicopters are the workhorses that carry out
construction and infrastructure projects in hostile or inaccessible
areas of local communities as they can often be the only tool
able to transport heavy loads, building materials, supplies, cargo
and more. Technology solutions from the Company protect many
critical systems from cyberattacks.
The Company saves lives. When a humanitarian crisis arises, its
aircraft help transport patients for urgent medical care, and they
assist in search efforts to find those marooned at sea, strandedin the mountains, or isolated in remote regions. Its EO satellites
are tasked to acquire images of the concerned area. This imagery

GENERAL

Highest governance body(ies) involved
Commitments to external frameworks

is delivered to relevant authorities, together with archived data,
to rapidly assess the extent of damage and support rescue
planning by allowing actions to be prioritised, and identifying if
roads, bridges and airport runways are still operational.
The Company protects. Its defence products and services help
countries protect their citizens, values and vital infrastructure. In
an unstable world, this security is a prerequisite of peace, the ruleof law, political stability, democracy, environmental sustainability,
human rights, economic development and prosperity, andscientific progress. The Company manufactures helicopters,
fighter jets and military transport planes that allow nations tosafeguard their airspace and respond to natural disasters.
The Company supplies intelligence capabilities as well as
terrestrial space and cyber security services. It provides securecommunications to governments and organisations devoted
to public safety. All help to make the world a safer place. Its
defence activities contribute to diplomacy, conflict resolution anda multilateral approach to international relations. By supplying
EU and NATO member states with advanced military equipment,
it strengthens their diplomatic influence and credibility on the
global stage – and in turn that of international institutions suchas the UN and NATO, thereby contributing to SDG 16 – Peace,
Justice and Strong Institutions.
The Company explores. It believes the exploration of ouruniverse will enrich life for generations to come. Its spacetechnologies and satellite imagery solutions continually expand
human knowledge of our universe, from the ability to capture
and analyse data on climate change and critical events on Earth,
to providing the solutions that enable deep-space exploration.
For decades, the Company has been at the very heart of space
exploration. It’s at the forefront of creating the technologies thatallow mankind to send spacecraft to planets, moons and comets
both near our sun and millions of kilometres away.

GRI

SDGs

Others102 General Disclosures

4, 5, 8, 9, 12, 13, 16, 17

Vigilance Plan

Board of Directors / ECSC
Executive Committee supported by topic-focused Committees
UN Global Compact, The Ten Principles, Sustainable Development Goals
Sustainability on Airbus.com , Airbus Tax Strategy

Add. ressources: this symbol indicates a linkto an external website

Innovation contributing to a more sustainable world on Airbus.com , Earth monitoring
and understanding (e.g. Climate change monitoring , Application for sustainable agriculture) ‌,Example partnership for innovation: ANITI project , Toulouse University (ANITI) ,The Future of Hydrogen by the IEA ,ATAG Benefits Beyond Borders fact sheet , ASD Fact Sheet 2021
UN Global Compact

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1. Information on the Company’s Activities /1.2 Non-Financial Information

Additional indirect contributions
The Company’s contribution to a more prosperous andsustainable society goes well beyond what it offers directly
through its products and services.

Economic
benefits

For example, as one of the most important players in the aviationindustry, the Company contributes significantly to SDG 8 “Decent
Work and Economic Growth” as highlighted through the 2020
ATAG Benefits Beyond Borders – global fact sheet, found on the
ATAG website (figures reflect pre-COVID-19 situation, a “normal”
year for air transport):

87.7 million$3.5 trillion

Jobs supported by aviation worldwide

Global contribution to GDP, 2018
(4.1% of world economic activity)

11.3 million direct jobs in the industry:
648,000 at airport operators
5.5 million in other on-airport jobs
3.6 million at airlines
1.3 million in civil aerospace
237,000 at air navigation service
providers

4.3x
Aviation jobs are, on average,
4.3 times more productive than other jobs

35%
18.1 million jobs supported throughthe aviation industry supply chain
13.5 million jobs through induced benefitsof industry and employee spending
44.8 million jobs supported in the tourism
industry

As a major European defence manufacturer, the Company also
has significant economic impact across Europe. According to the
AeroSpace and Defence Industries Association of Europe (ASD)
the industry supports over 462,000 high-skilled jobs acrossthe continent, all contributing to Europe’s economic prosperity
with € 119 billion in annual revenue, € 45.6 billion of which are
dedicated to exports.
While the Company contributes to the global economy as awhole it also contributes to the economic development of thecommunities it operates in. Full aerospace ecosystems, often
bringing together academia, research centers and corporations,
all with high value-added jobs, often develop around theCompany’s sites such as those in Toulouse or Hamburg. Thisdevelopment is accelerated thanks to the Company’s innovation
ecosystem such as the recently launched Airbus Scale initiative,
a new innovation unit that brings together corporate innovation,
start-up engagement and company-building activities. In thisapproach, Airbus Scale will promote and identify internal
corporate innovation opportunities that can be developed into
solutions for the external world, bringing them to market andattracting external investments that could result in spin-offs. This
generates value for the Company but also the local communities
where these new companies will set foot and prosper.

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Worldwide trade by value carriedby air transport, 2018 ($6.5 trillion).
By volume: 0.5%

17th
If aviation were a country, it would rank
17th in size by GDP

There are many other examples of how, in the process ofdeveloping its products and services, the Company is stimulating
innovations and developments across the aerospace ecosystem,
benefiting society more broadly.
For example, as the Company prepares for its ZEROe aircraft,
it is stimulating multiple innovations and development aroundthe use of hydrogen from low carbon and renewable hydrogenproduction and storage to combustion and propulsion, allbeneficial beyond aerospace. As an example, by committing toa hydrogen-powered aircraft by 2035 the Company is priming
demand, stimulating low carbon and renewable hydrogenproduction capacity. Currently, less than 0.1% of global dedicatedhydrogen production comes from water electrolysis according to
the International Energy Agency (IEA)’s 2019 report The Futureof Hydrogen. However, this is expected to rapidly change. The
cost of renewable energies is falling at an unprecedented rate.
Investment in electrolysers – the “clean” technology used toseparate hydrogen and oxygen atoms in water – is expected
to boom worldwide.

1. Information on the Company’s Activities /1.2 Non-Financial Information

1

Sustainability Commitments
Furthermore, the Company understands that contributing toa sustainable society must be achieved not just through what
it does but also how it does it, aiming at minimising negative
impact and maximising the positive. In order to give direction andfocus, in 2020 the Company updated its sustainability strategic
The Company’s four Commitments

Material topics

framework around the below listed four sustainability priority
commitments that apply across its entire value chain. These
commitments are in close connection with the UN SDGs andcontribute more specifically to eight of them.

SDGs

SectionEnvironmental impactof our operations#1
Lead the journey towards clean
aerospace

Environmental impactof our products#2
Build our business on the foundationof safety and quality#3
Respect human rights and foster
inclusion#4
Exemplify business integrity

1.2.2

Product Safety
Cybersecurity

1.2.3

Health & Safety
Human Rights
Inclusion & Diversity

1.2.4

Labour Relations
PeopleBusiness Integrity

Across each commitment the Company has set key performanceindicators (“KPIs”) and targets enabling the Company tomonitor progress towards these ambitions. These can befound in “– 1.2.8 ESG Data Board”, which gathers all reported
sustainability metrics. They can also be found in the related
sections of this chapter which is structured around each of thefour commitments above, completed by two sections which
cut across all four commitments, “– 1.2.6 Responsible Supply
Chain” and “– 1.2.7 Community Impact”.

1.2.5

Several sources were essential in deciding on the fourcommitments, including the 2019 materiality assessment, athorough benchmark, an analysis of market and regulatory
trends, an evaluation of ESG risks in the Company’s risk report,
a human rights gap analysis and the consideration of theCompany’s values.

Stakeholder engagement
At a strategic level, the 2019 materiality assessment was a critical exercise in capturing the voice of 12 of the Company’s mostimportant stakeholder groups, helping it identify which ESG issues were most material to them, and integrating this into its strategy.
These key stakeholder groups included:
Customers

NGOs

Authorities

MRO providers

Suppliers

Investors

Governments

Airports

Partners

Employees

Industry Associations

Community at large

The stakeholder viewpoint was captured via a mix of surveys
and artificial intelligence (via analysis of reports, legislation andmedia sources). The materiality viewpoint of stakeholders was
mapped against the actual or potential impact on the Company ofidentified environmental, social and governance (“ESG”) issues,in addition to an analysis of which ESG issues the Company has,or could have, the most impact on. These were both captured
via surveys sent to the Company’s executives. Results led to
the following three-dimensional materiality matrix, fundamental
in establishing the Company’s four commitments. The intention
is to launch a new assessment in 2022.

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1. Information on the Company’s Activities /1.2 Non-Financial Information

Technology & Innovation

Environment - Products
HIGHEST

Product Safety& Quality
Security (incl. Cyber security)
Health & Safety

HIGHER

Environment - Operations

Responsible employer

Business Culture& Leadership

Economic

Stakeholder Engagement
HIGH

INCREASING MATERIALITY TO STAKEHOLDERS

Materiality matrix
Materiality Matrix

Community Impact
Responsible
Supply Chains
HIGH

HIGHERHIGHEST

INCREASING IMPACT ON AIRBUS
Bubble size : Impact OF Airbus
Environment

Safety & Quality

Human rights

Business integrity

Other

Source: Datamaran.

GovernanceConscious of the strategic importance of sustainability, theCompany has defined an adapted governance and organisation
at the highest level.
Hence, oversight has been established at the Board of
Directors level with the Ethics, Compliance and Sustainability
Committee (“ECSC”). For further information about the ECSC,
see “– Corporate Governance – 4.1 Management and Control”.
The ECSC is responsible for assisting the Board of Directors tooversee the Company’s:–– Culture and commitment to ethical business, integrity andsustainability;–– Ethics & Compliance programme, organisation and framework
for the effective governance of ethics and compliance, including
all associated internal policies, procedures and controls; and–– Sustainability strategy and effective governance to ensurethat sustainability-related topics are taken into account in the
Company’s strategy and objectives.

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Under the Board Rules, the Board of Directors delegates the dayto-day management of the Company to the CEO, who, supportedby the Executive Committee, makes decisions with respect tothe management of the Company, including sustainability. The
Executive Committee has the responsibility to provide top level
expectations and direction while overseeing and validating thesustainability strategy. This entails validating sustainability targets
including those integrated into the Top Company Objectives.
The Executive Committee is supported by several committees orboards linked to the Company’s four sustainability commitments:–– the Environment Executive Steering Committee, the Inclusion& Diversity Board as well as the Product Safety Board, allchaired by EC members;–– the Steering Committees of the Human Rights and Sustainable
Supply Chain Roadmaps, both sponsored by Executive
Committee members.
Other sustainability topics such as Health & Safety and Business
Integrity are brought directly to the attention of the Executive
Committee.

1. Information on the Company’s Activities /1.2 Non-Financial Information

1

Board of Directors

Ethics, Compliance & Sustainability Committee

Executive Committee

Environment
Executive
Steering
Committee

Inclusion & Diversity
Advisory
Board

Product Safety
Board

Health & Safety, Human Rights, Business Integrity,
Sustainable Supply Chain
Direct cascading of topics to the Executive Committee

The Company also believes the integration of sustainability
criteria in its reward mechanisms is an important enabler
for accelerating its sustainability ambitions. A sustainability
component is integrated into the Common Collective Componentof the CEO’s variable remuneration, accounting for 20% of thepayout, see “– Corporate Governance – 4.4 Remuneration
Policy”. This principle also applied to the other members of
the Executive Committee who do not serve on the Board of
Directors, and to a large extent to executives employed at theCompany.

1.2.1.1 Airbus’ way forward: Vigilance
Plan

Organisation and policy framework

As far as its own operations are concerned, the Company has
adopted internal policies and management tools to performthe assessment, monitoring, mitigation and reporting of risk
and compliance allegations, which are embedded into theCompany’s culture and processes.

The Sustainability & Environment team put in place inJanuary 2020 at corporate level has continued to develop andexpand. Its mission continues to be to:-- Set the ambition level for the four sustainability strategic
commitments.

-- Identify the levers to achieve this ambition.
-- Enable the business to deliver this ambition acrossthe full value chain.

-- Engage employees on sustainability.
-- Provide clarity on ambition and progress to internaland external stakeholders.

While the Sustainability & Environment team has a Company-widerole to provide direction and check regularly on advancements
across all sustainability topics, for each of those topics (e.g.
Health & Safety, Inclusion & Diversity, Human Rights, etc.), there
are related functions, departments or “roadmaps” (multifunctional
teams addressing cross functional sustainability topics) driving
their continuous improvement. These teams are for the mostpart supported by dedicated policies which are referred to in
the Company’s Code of Conduct, a single reference intended
to guide daily behaviour and help employees resolve the mostcommon ethical and compliance issues that they may encounter.
The Code of Conduct applies to all employees, officers anddirectors of the Company.

The Company is determined to conduct its business responsibly
and with integrity. The Company is convinced that promoting
responsible business conduct within its value chain is key tosustainable growth. For the Company’s Vigilance Plan for its
supply chain, see “– 1.2.6 Responsible Supply Chain”, whichshall be deemed to be incorporated by reference and form partof this plan.

Enterprise Risk Management & Internal Audit: With regard
to risk management, sustainability risks and opportunities are
fully embedded in the Company’s Enterprise Risk Management(“ERM”). For further information on ERM, see “– Corporate
Governance – 4.1.3 Enterprise Risk Management System”. For
further information on the Company’s risks, see “– Risk Factors”.
Internal audits are also performed regularly across the Company,
including on sustainability topics. See “– Corporate Governance– 4.1.4 Internal Audit”. External audits are also performed in linewith certification requirements as detailed in the related material
topic sections.
Sustainability competencies & employee engagement:
Awareness-raising, competence development and employee
engagement are essential to preventing and mitigating
sustainability risks and maximising opportunities. To this aim,
the Company offers employees over 400 training opportunities,
online and in-person, linked to environment, human rights,
inclusion & diversity, data privacy, cybersecurity, product/
aviation safety, health & safety and ethics & compliance. Training
courses linked to sustainability topics were integrated into the2021 mandatory training list for Company employees. Specificinformation on training is covered in the related material topic
sections.

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1. Information on the Company’s Activities /1.2 Non-Financial Information

Affiliates: All Company-controlled affiliates are expected to
deploy similar internal policies by applying the Company’s
directives. A Company-wide single directive defines rules,
processes and procedures applicable to the Company’s
affiliates and their respective boards, directors and officers. Its
enforcement is supported by the Directors’ training programme
which, in 2021, was delivered to around 267 people over 18
full-day digital sessions. The single directive assists theCompany’s affiliates in effectively fulfilling their responsibilities
while assuring the Company’s ongoing commitment to highstandards of corporate governance. It was built on the basisof Company-related internal policies including but not limited
to: the Company’s Code of Conduct, International Framework
Agreement; Agreement on the European Works Council; Supplier
Code of Conduct; Health & Safety Policy; Environmental Policy;
the Company’s Anti-Corruption Policy and related Directives. An
online self-assessment is completed on an annual basis by thecontrolled affiliates to self-assess their internal controls, including
how they relate to the environment, health & safety, humanresources, governance, finance, procurement and compliancerequirements in order to identify any gaps and define remedialaction plans as required. Controlled affiliates can update theself-assessment on a quarterly basis based on their progression.
Since 2019, affiliates have also been asked to regularly evaluate
risks via the Company’s ERM system, as well as to regularly
monitor them as part of their risk assessment process.
Grievance & whistleblowing mechanism: The Company iscommitted to maintaining a “speak-up” culture by promoting
an open and trusting dialogue with employees at all levels. All
employees are encouraged to express their views, defend theiropinions, and point out unacceptable behaviour – especiallybehaviour that violates the Company’s Code of Conduct.
Employees can raise concerns to their line manager, their
human resources business partner, to a Legal & Compliance
representative, or through the Company’s “OpenLine” hotline(www.airbusopenline.com). The OpenLine is anonymous wherelegally permissible and also available to external stakeholders,
including affiliates and suppliers, and covers all sustainability
topics. The Company endeavours to ensure that the proceduresto assess, investigate and manage allegations are well aligned
throughout the Company. For further information about the
OpenLine, see “– 1.2.5 Exemplify Business Integrity”.
For further information on the Company’s approach to theenvironment, see “– 1.2.2 Lead the Journey Towards Clean
Aerospace – Environment”. For further information on the
Company’s approach to human rights and health and safety,see 1.2.4 and 1.2.3 respectively.
A dedicated section also appears at the end of this reportcompiling key information related to the vigilance plan. See“– 1.2.9 Deployment of Vigilance Plan (Devoir de Vigilance)”.

1.2.1.2 Reporting standards
The Company reports against the GRI (Core) standard. A GRI
index is available in “– 1.2.12 GRI Index”.
TCFD and SASB: Disclosed information is referenced in
dedicated tables in sections “– 1.2.11 TCFD Correspondence
Table” and “– 1.2.13 SASBI Correspondence Table” respectively.

1.2.2 Lead the Journey Towards Clean AerospaceI.

Introduction

In line with the Company’s purpose “pioneering sustainableaerospace for a safe and united world” and its aim to drive thetransition of the air transport system towards climate neutrality,
the Company’s foremost ambition as an aircraft manufacturer
is to bring the first zero exhaust CO2 emission (“zero emission”)
commercial aircraft to the market by the middle of the next
decade and to play a leading role in the decarbonisation of theaviation sector. The Company is investing major resources into
examining and reducing the impact of its products in operation
together with all actors within the aviation sector.
As a supporter of the Task Force on Climate-related Financial
Disclosures (“TCFD”), the Company not only tracks and measuresthe environmental impact of its sites, products and services, butalso works in cooperation with its worldwide supply chain todrive more effective environmental management, decarbonise its
industry and foster circularity by optimising resource utilisation.
To help the Company reach its vision, it places innovation at thecore of this effort by investing in research, new technologies
and sustainable solutions. The Company approach to address
climate risks and opportunities follows the four pillars of the
TCFD – governance, strategy, risk management, metrics &targets – as reflected in the Company reporting hereafter, andin its answers to the CDP questionnaire published on its website.
The Company maintained its A- CDP rating in 2021.

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The Company has identified climate change as its mostmaterial environmental impact and as such recognises its rolein contributing to mitigating the global footprint of the sector andthe importance of aligning and respecting the commitmentsof the Paris Agreement. Climate change may also affect theenvironmental conditions in which the Company’s manufacturing
activities and products are operated. Another main areaof attention is the elimination or management of regulated
substances. The Company is continually seeking technicallyfeasible sustainable solutions to reduce the environmental
impacts of its products and operations, in cooperation with
its suppliers and industrial stakeholders. Other environmental
aspects such as the impact on water resources, the productionof waste or the emission of air pollutants are also part of theCompany’s priorities.
To this end, the Company has set key environmental ambitions:–– lead the decarbonisation of the aerospace sector aiming tobring the first zero emission commercial aircraft to market
by 2035;–– reduce the industrial environmental footprint at sites worldwide
and throughout our supply chain;–– develop a more circular model, leveraging ecodesign anddigitalisation to optimise material utilisation and reduce useof critical resources;–– enhance the current product and services portfolio contributing
positively to climate change mitigation and adaptation.

1. Information on the Company’s Activities /1.2 Non-Financial Information

ENVIRONMENT

GRI

SASB

302 Energy
303 Water
and Effluents
305 Emissions
306 Waste-- Energy Management-- Hazardous Waste Mgmt-- Fuel Economy & Emissions

Board of Directors / ECSC
Executive Committee / Environment Executive Steering Committee

Related Corporate Policies

Environmental Policy

Management system
Relevant certifications

EMS – Environmental Management System
ISO14001 -88% of workforce covered

Target2030

CO2e Scope 1&2 (ktons)(1)

Energy(4) (GWh)
Waste:
Waste produced(5) (tons)

Others9-12-13-17

TCFD
Vigilance
Planin Use-Phase

Highest governance body(ies) involved

KPIs

SDGs

1

Baseline2015(8)

2020

2021

2021
vs. 2020

2021 vs.
Baseline-63%(2) in line with
1.5°C pathway“net zero Scope 1&2”
by 2030(3)

1,116

882

827

-6%

-26%

-20%

3,107

2,665

2,728

+2%

-12%

-20% produced
and 0% landfill
and incineration w/oenergy recovery

107,967

74,89869,660-7%-35%

Air emissions:
VOC (tons)

0% increase

1,464

1,047

1,051

0%

-28%

NOx (tons)

0% increase

15

14

14

-3%

-8%

SOx (tons)

0% increase

247

239

222

-7%

-10%

Water:
Water purchased (m3)-50%

3,311,578

2,865,793

2,584,644

-10%

-22%

Water withdrawal (m3)0% increase

3,754,503

3,371,030

3,078,590

-9%

-18%

2020

2021

2021
vs. 2020

440,361

463,592+5.3%

Other key metrics (More metrics available in the ESG Data Board)
SCOPE 3 – Use of sold product – Commercial Aircraft(6)(7) (CO2e kton)
Delivered aircraft efficiency intensity (gCO2 /km.pax)

63.1

62.6

-0.8%

SCOPE 3 – Use of sold product – Helicopters(6) (CO2e ktons)

1,085

1,137

+4.8%

SCOPE 3 – Purchase of Goods and Services(6) (CO2e ktons)

11,346NAstableA-A-

CDP Rating
Remuneration

CO2 performance included in CEO and Executives variable remuneration.
Targets (on TCO scope): -3% in 2021, -5% in 2022. 2021 performance: actual -7%; retained -6%,
net of guaranteed origins in excess of amount planned for target setting.

KPI assumptions(1) Scope 2: location based with purchased guarantees of origin deduced.
(2) Established following the Science based Target methodology in line with a 1.5°C pathway.
(3) Neutralising residual emissions through permanent removal and storage solutions.
(4) Total consumption from stationary sources.
(5) Total waste excluding exceptional waste.
(6) Scope 3 methodologies are detailed in the environment section hereafter.
(7) 2020 figures restated, integrating refined emission factors.
(8) Baseline was refined to reflect changes in scope, align with GHG protocol guidelines
and rectify actuals for some entities.

Additional resources

Environmental Policy Statement , Environment on Airbus.com , CDP Climate Change
Questionnaire on Airbus.com and on CDP website , ATAG Waypoint 2050 , IEAG – GHG
Reporting Guidance ,ITAKA Initiative Towards sustAinable Kerosene for Aviation , Clean Sky initiative , SESAR
initiative , Partnership on Smart Cities and Communities (EIP-SCC)

Airbus / Registration Document 2021

61

1. Information on the Company’s Activities /1.2 Non-Financial Information

II. Governance
Environmental policy
The Airbus Environmental Policy is the top level referential defining
the guiding principles, mission, vision and associated top level
Initiatives for environment. The policy applies Company-wide,
including to affiliates where the Company owns more than one
half of the voting rights or the right to appoint the majority of theBoard directors to the extent that the shareholders agreement
and/or the level of control in force in each relevant affiliate allows
it. It covers the Company’s employees and contractors whilst on
the Company’s sites or at work under the responsibility of theCompany. The policy takes a holistic approach to measuring
and acting upon the Company’s environmental performanceby assessing the environmental impact of internal operations
as well as providing capabilities to the Company’s customers to
reduce the impact of the products in operation. This also means
introducing a lifecycle perspective and mitigating the risks andimpacts at all stages of the lifecycle, from the procurement of raw
materials, through the design and manufacturing of products,
to their in-service life until their retirement.

Organisation and responsibilities
Two main management structures are relevant for the governancein sustainability matters and climate change: the Board of
Directors and the Executive Committee.
As mentioned above, the Board of Directors is supported by
the ECSC. In practical terms, the ECSC as a committee of theBoard of Directors oversees strategic decision-making and theexecution of the approved sustainability strategy, including areas
such as innovation and environmental and climate action.
In 2021, the ECSC reviewed and provided guidance on a numberof environmental topics such as the Company’s decarbonisation
strategy for its direct operations, supply chain and products.
To support the Executive Committee in environmental matters,
especially climate-related, an Environment Executive Steering
Committee (“EnC”) was established in 2019. The EnC is
composed of members of the Executive Committee and senior
executives Company-wide, responsible for environmental topics.
It meets monthly to review the progress and take decisions
on all matters related to the environmental strategy. The EnC
reviews climate change related topics, including the progresson greenhouse gas (“GHG”) emissions reduction objectives, thedecarbonisation strategy and climate related risks.
Environmental operations are led by the Sustainability &Environment department (described above), whose role is toguide the business in environmental matters and to set the policy
and deploy, drive and improve the Environmental Management
System (“EMS”) throughout the Company.

62

Airbus / Registration Document 2021

The Company’s EMS is based on ISO 14001:2015. Airbus was
the first aircraft manufacturer to be ISO 14001 certified, andcontinues to show its commitment by having been recertified
to ISO 14001: 2015 in November 2019, and confirmed by acertification surveillance audit in 2020 and 2021. The Company
also monitors environmental regulatory developments tounderstand, evaluate and prepare for legal and regulatory
evolutions applicable to its activities and products.
The Company’s environmental strategy is implemented
operationally by dedicated multifunctional teams at corporate
and/or divisional level. These cover topics such as industrial
and site impact, product operation, supply chain or chemical
substances.

Disclosure of environmental indicators
The Company actively monitors its environmental data throughout
the organisation in order to measure the environmental impact
of its operations, track its performance and communicate
information on environmental matters to internal and external
stakeholders. Since 2010, environmental data published by theCompany is verified by external auditors. This data is includedin the ESG data board at the end of this section.
As part of its transparency policy, the Company provides climatechange related data and information to the CDP annually,
providing its investors and other interested parties with the insightthey need. In 2021, the Company has maintained the A- scoreobtained in 2020.

III. Risk Management
Environmental risk and opportunities are managed following
the Company’s ERM system. A specific Sustainability andEnvironment ERM plan integrates additional requirements
defined within the ISO14001:2015 certified EMS and provides
a transverse set of rules applicable Company-wide to ensure a
consistent management of environmental risks and opportunities.
Relevant criteria for the evaluation of environmental risks andopportunities include: financial impact, impact on environmental
performance, impact on EMS certification, as well as legal,
supply chain and reputational aspects.
Risks and opportunities are reported quarterly to the Executive
Committee of each Division and top risks, including climaterelated risks, are consolidated at Company level to be brought
to the attention of the Board of Directors and reviewed semiannually.

Climate-related risks
Climate-related risks (adaptation and mitigation) are described in“– Risk Factors – 4 Environment, Human Rights, Health & Safety
Risks” and shall be deemed to be incorporated by reference andform part of the Non-Financial Information.

1. Information on the Company’s Activities /1.2 Non-Financial Information

IV. Implementation/Activities
1.

Industrial operations

The Company has been working for many years on the reductionof its environmental footprint, not only its products and services
but also its production and facilities. This started in 2006 with theBlue5 programme, supporting the 2020 Vision objectives for the
reduction of the Company’s industrial environmental footprint.

High5+ revised targets in line with a “1.5°C” pathway
and neutralising residual emissions by 2030
In 2019, the Company continued with the 2030 vision andextended its programme in order to anticipate increasing
environmental regulation, foster employees’ engagement andprovide answers to stakeholders’ expectations for the coming
decade.
Named “high5+”, the programme is built on a set of ambitious
reduction targets covering the five most material environmental
impacts for the Company in order to reduce energy consumption,
CO2 emissions, water withdrawal, Volatile Organic Compounds(VOCs) emissions and waste production. These objectives havebeen set in absolute value, with 2015 levels as reference, as
follows:–– CO2: reduce direct (scope 1) and indirect (scope 2) net GHG
emissions by -63% by 2030 compared to 2015. This target
has been set by applying the relevant “Science Based Target
Initiative” (SBTi) methodology for a near-term target in line witha “1.5°C” pathway. While the Company is working on a detailed
pathway for a long-term target in line with the SBTi Net-Zero

1standard, it has committed to neutralise the scopes 1 and 2
residual emissions from 2030 by using only carbon removals;–– energy: reduce energy consumption from stationary sourcesby 20% by 2030;–– waste: reducing the amount of waste produced by 20%
by 2030 and divert 100% of the waste from landfilling andincineration without energy recovery;–– air emissions: 0% increase of VOCs emissions by 2030;–– water: develop strong maintenance and rehabilitation
programmes to reduce drinking (purchased) water by 50%,
with no increase in overall water withdrawal.

Annual objectives and CEO / executives remuneration
In order to better embed this ambition into the Company’s
performance management, short-term targets are establishedconsistently. The Executive Committee agreed in 2020 to include
a reduction target for 2021 (compared to 2020) of -3% for CO2
and -5% for purchased water (see table below) as part of theCompany’s top objectives.
In 2021, the Executive Committee agreed to include reduction
targets of -5% for CO2 for 2022 (compared to 2021) as part of
the Company’s top objectives.
As such, these annual targets form part of the CEO’s and other
Executive Committee members’ remuneration, see “– Corporate
Governance – 4.2.1 Remuneration Policy”. In 2022, the CO 2
target will also be included as a non-financial KPI in the variable
remuneration of executives.

For 2021, the CO2 and water annual performance is described in the table below:
Target2020

2021

2021 v. 2020

CO2 (ktons)

-3%

811

Water (m3)-5%

2 101 229

Covered scope

754

(1)

-7% (-6% retained )91%

1 791 662

-15%

69%

Data audited by EY®
Annual objective on CO2. Geographical scope: In 2021: 48 sites. Scope of metrics: Scope 1 & 2 (including Oversize Transport) and excluding: refrigerant leakage, butane
consumption, electricity on site from CHP, emissions due to processes. Scope 2 is location based with purchased guarantees of origin deduced.
(1) Net of guaranteed origins in excess of amount planned for target setting.
Annual objective on puchased water. Geographical scope: In 2031: 35 sites in Europe, China, USA and Canada, excluded: subsidiaries and Airbus Helicopters sites. Scope of
metrics: Volume of purchased water.
Scope: The TCO scope os reviewed annually. 2020 data were updated to reflect change in TCO scope accordingly.

Airbus / Registration Document 2021

63

1. Information on the Company’s Activities /1.2 Non-Financial Information

GHG emissions and energy reduction
on increasing energy efficiency and using low carbon energy
sources, while plans for reducing mobile sources emissions
include switching to lower emission vehicles where possible andavoiding emissions through better planning of flights and logistics
and using lower carbon fuels (e.g. sustainable aviation fuels (SAF)).

Stationary sources (e.g. heating, cooling, manufacturing
processes etc.) account for c.70% of GHG emissions at theCompany’s sites and mobile sources (ground vehicles, “Beluga”
air transport operations, flight test, etc.) for c.30%. Action plans
for reducing emissions from stationary sources mainly rely
Fig. High5+ CO2 performance vs. revised ambition
2 000

1 000
900
800

1 500

600
1 000

500

827

Deliveries

ktons CO2e - Scope 1&2

700
611

400
300
500

-63% vs 2015

200
100
0

0
2015

Actuals

2021

TargetAmbition

In 2021, scope 1 and 2 GHG emissions have decreased byaround 6% (7% on TCO scope), primarily due to oversize
transportation efficiency and operation improvements, reduced
flight tests activities and European emission factors improvementthat more than offset production ramp-up impact.
Since 2019, SAF is used in the operation of the Company’s
Beluga transport aircraft for the purpose of internal logistics.
In 2022, flight test activities will also start using SAF as partof the Company’s revised GHG emissions reduction plan. The
share of SAF used in these activities will progressively increase
to 50% by 2030.
In the same timeframe, the share of renewable electricity used inindustrial operations in Europe will also progressively increase,starting with an increase of 10% of guarantee of origin (GoO)
certificates per year and the incorporation of long-term powerpurchase agreements (PPAs). The PPA project was launched in2020 and achieved a major milestone in 2021 with the validationof the requirements to purchase renewable and low-carbon
energy as well as the selection of suppliers to be finalised in 2022.
This will allow the Company to accelerate its ambition to secure
100% renewable and low-carbon energy supply to all sites in
Europe by 2024. The Company is investigating opportunities
in other regions (eg. US, China) to follow the approach applied
to Europe.
In addition, the Company uses an internal carbon price tosupport investment with positive energy and CO 2 reduction
impacts on operations. In 2021, this price was updated from

64

Airbus / Registration Document 2021

2030

Revised ambition

Deliveries

30 €/tCO2 to 150 €/tCO2, giving a clear signal to project leaderson the importance of CO2 footprint reduction and enabling astrong acceleration of project portfolio implementation.

Carbon offsetting and neutralising residual emissions
Carbon offsetting: in 2019, the Company introduced amechanism to compensate emissions of activities forwhich reduction measures and use of renewable energy
are not sufficient to meet the internal targets, such as airand sea activities, as well as emissions from air businesstravel. This mechanism follows an approach of first avoiding
and reducing GHG emissions in absolute value to later
compensate for residual emissions. The Company built
a rigorous procurement process based on the conceptsof additionality, real (permanent) reduction, preventionof double counting, prevention of overestimation and no
additional harm. As a minimum, the carbon offsets need tobe certified by the Gold Standard or Verra or Verified Carbon
Standard or Climate, Community and Biodiversity Standards
and the supplier needs to show proof of how each one of
the mentioned criteria were met. In addition, understandingthat these carbon offsetting programmes may have gaps
in their methodologies, additional proof was requested of
how such gaps are managed by the provider. Moreover,societal aspects were considered, such as prevention ofchild labour, respect of human rights and the relation with thecommunities surrounding the projects. The volume of offsets
required in 2021 is about 40ktCO 2e, procured through offset

1. Information on the Company’s Activities /1.2 Non-Financial Information

producer South Pole in the form of a cluster of compensation
and removal projects: aforestation (VCS), landfill gas andwaste gas (GS-VER), forest conservation (VCS-CCBS).

a priority, this is a topic also driven by chemical regulations, theevolution of which may impact the reduction roadmap’s ambition
and timing (see Chemical Substances section below).

Neutralisation of residual emissions: as part of 2030 roadmap, the Company is developing a plan to neutralise residual
emissions. The plan will follow as a minimum the SBTi “NetZero” standard and the current scientific understanding in its
definition of neutralisation by including only permanent removal
and storage of carbon from the atmosphere.

Biodiversity

Water management
The Company’s water usage is mostly linked to sanitation andgeneral uses (around 85%), while the rest is used in production
related processes.
In 2021, the purchased water volume followed a similar trend
as CO2, decreasing by 15%. This reflects the increase in remote
working (reduced presence on site), also resulting from the
COVID-19 situation, as well as an increased water-efficiency
and leak repair campaigns. Increased focus is put on the local
level of water stress: in 2021, an analysis was conducted basedon the World Resource Institute’s (WRI) Aqueduct Water Risk
Atlas tool in order to understand where the Company’s activities
have the greatest impact on water resources. In 2022, the action
plan will be adapted to reflect the priorities accordingly.

Air emissions
Air emissions, primarily referring to VOC emissions related
to surface treatment, are mostly impacted by the number ofdeliveries. Substance substitution may also lead to the use of
new chemicals with more VOC emissions which need to bemonitored. Overall VOCs emitted are stable, reflecting the effort
on product substitution even if production rate has increased
compared to 2020.

Material consumption and waste management
The Company promotes the development of a circular economy
model, and is proactive in seeking ways to recover, reuse andrecycle materials beyond their initial life.
Not only does the Company send around 50% of its waste to
be recycled, but already, through the TARMAC Aerosave joint
venture, more than 90% of an aircraft’s weight is recycled orreused through a selective dismantling (reverse manufacturing)process.
Regarding waste management, a multifunctional team iscurrently working in order to meet the high5+ ambition, gatheringskills across the organisation such as engineering, information
management, procurement, industrial operations and facility
management.
The focus has been on standardising the existing practices
towards waste collectors in order to take into account the
involved regulatory framework and to enhance data monitoring
and reporting needs. There are also strategic projects ongoing
to clarify and enhance site monitoring strategy as well as onwaste recycling.

Hazardous waste
In the Company’s European operations, the main sources ofhazardous waste are contaminated packaging and chemical
waste, especially waste from surface treatment activities, oil, fueland various chemicals. While chemical waste reduction remains

1

When building a new site or extending an existing one, theCompany engages with local partners on conservation andremediation projects to preserve flora and fauna where impacted
by the Company’s industrial activities.

Digitalisation
The Company leverages digitalisation as an enabler to optimise
and reduce its environmental footprint. For example, some
applications target to improve design, material utilisation or to
optimise critical resources usage.
At the same time, the Company strives to minimise the direct
increase in the environmental footprint as a consequence ofdigital technologies development.

Life cycle thinking and conscious design
The Company invests in Life Cycle Assessment (LCA) for
environmental impact accounting associated with a specificproduct in accordance with the requirements specified in thestandard ISO14040. Detailed LCA studies have been completed
for the A220, A320neo and A350XWB product lines, coveringover 95% of the Company’s deliveries of commercial aircraft
products in 2021. These studies are currently being verified bya third party auditor.
In addition, this holistic approach is used to provide a frameworkfor projects to make environmentally conscious design choices toreduce projects footprint and optimise aspects such as productend-of-life management and critical raw materials usage. As
an example, as part of its Ecodesign initiative, the Defence andSpace Division used LCA for the development of the Sentinel
satellites that are built for the European Space Agency (ESA).

Chemical substances
Many substances used in the global aerospace industry toachieve high levels of product quality and meet stringent
technical performance, airworthiness and reliability requirements
are subject to strict regulations.
In the aerospace industry, regulations on substances impact
key processes and products, such as surface treatments, paints
and fire protection.
The Company remains committed to moving towards
replacement of such substances in products and processes.
To help achieve this, the Company has put in place a portfolio ofactivities and projects, working with suppliers to identify, develop,
qualify and deploy new technologies and solutions that avoid theuse of substances classified as posing a risk to human healthor the environment, whilst satisfying airworthiness, certificationand performance requirements.
The Company also engages with suppliers to promote theadoption of a similar approach through regular communicationand more widely, by working together with the aerospaceindustry to promote worldwide harmonisation of regulations
and ways of working, taking into account the sector’s safety
and lifecycle specificities.

Airbus / Registration Document 2021

65

1. Information on the Company’s Activities /1.2 Non-Financial Information

Using information obtained from its suppliers, the Company
tracks, registers, assesses and declares regulated substances.
Since 2011, the Company has analysed the impact of over
1,100 substances and qualified and deployed substitutes forover 100 substances in 300 products.
Currently, the Company is actively working to substitute65 substances in its own design, and an additional 45 in its
supply chain, over the next five years.
The Company invests substantial time and resources in researchand development for technologies that use alternatives toregulated substances. When it can be demonstrated thatthese technologies meet the strict safety and reliability criteria
required for aviation, the Company seeks to implement them in
its aircraft design and manufacturing. For example, the Company
is, in cooperation with its suppliers, developing, qualifying andprogressively deploying on all its new aircraft, new Chromatefree corrosion protection and paint systems for aluminium

structures. Another example is the halon replacement projectthat researches alternatives to halon, a highly regulated ozone
depleting substance, used for the fire extinguishing systems inengines and cargo areas.

Noise
Noise around the Company’s sites can also be an important
topic for neighbouring communities. The Company is actively
engaged with local authorities and the affected population tominimise its impact, by adapting operating times and actively
seeking to reduce the noise at the source. In Toulouse, Airbus
has launched the Median initiative regrouping actors in chargeof flight activities around the airport to find the most effective
solution to reduce noise levels.
Light pollution caused by Airbus activities has been deemed to
be non-material to the Company’s value chain.

2. Product operations
According to “Our World in Data”, air transport as a whole represents approximately 2% of global human-induced GHG emissions,and around 12% of the transport sector emissions – see graph 1.

reAgricultu
Energy in hing (1.7%)
isF&

EnergyEnergy
73,2%

73.2%

66

Airbus / Registration Document 2021

)
.5%
Ene
rgy use i building (17
n

)
9%
10.
(
s
ing
build
Residential

6%
10.
try
s
u
ind

er
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Roa
d Tra
nspo
rt 11
.9%

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iat
ion

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1.
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Sh ail ( line
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co Un
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Gra landAgriculture,
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n
d
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1.9%
Waste
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wate
r (1.3
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18.4%
Was
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ChemicW
tea3s
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Ene
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us
ei
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y
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an
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ort
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anure
ck & mLivesto

%
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ce
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%)

Graph 1: Global greenhouse gas emissions by sector – source: Our World in Data with data from Climate Watch,
the World Resources Institute (2020)

1. Information on the Company’s Activities /1.2 Non-Financial Information

The Company is committed to contributing to meeting the Paris
Agreement targets and taking a leading role in the decarbonisationof the aviation sector in cooperation with all stakeholders. The
Company is convinced that aviation can achieve net zero CO2emissions by 2050. This is why the Company has the ambition
to develop the world’s first zero-emission commercial aircraft by
2035. In parallel, the Company is also developing a multifacetedclimate-impact programme for commercial aircraft. This includes
a focus on new aircraft technology development, sustainableaviation fuel (SAF), hydrogen, air traffic management (ATM)solutions and carbon removal solutions.

Aviation industry targets
The aviation sector’s measures for reducing its environmental
footprint started decades ago and significant achievements havebeen made. Since the 1990s, the sector has improved significantly
the fuel and CO2 efficiency of subsequent generations of aircraft,thereby reducing CO2 emissions per revenue passenger kilometerby more than 50%.

1

In 2008, the aviation sector was the first to agree at sectorallevel on ambitious CO2 emission reduction goals through the Air
Transport Action Group (“ATAG”) by committing to an aspirational
goal of reducing net emissions from aviation by 50% by 2050
compared to 2005 levels. In September 2021, ATAG updated its
ambition and commitment with the 2021 edition of the “ATAG
Waypoint 2050” report to reflect the industry’s increased ambition
to achieve net-zero carbon emissions by 2050 and contributing
to the Paris Agreement goals.
Along with the revised ambition, ATAG provided several scenarioswith ranges of improvement for each mitigation option (technology
and design improvements, operational and ATM enhancements,
SAF and hydrogen non-drop-in solutions, and International Civil
Aviation Organisation’s (“ICAO”) Carbon Offsetting and Reduction
Scheme). In the most ambitious scenario, a reduction of up to
40% of CO2 emissions can be achieved through technologicaldevelopments, as illustrated by Graph 2 below.

Graph 2: The aviation industry’s roadmap to net zero carbon emissions by 2050
CO2 emissions (millions of tonnes)
2,500

2,000

1,500

1,000

500

INDUSTRY 2050 GOAL
0
2015

2020

Latest generation
aircraft

2025

Technology

2030

2035

Operations
and infrastructure

2040

2045

Sustainable
Aviation Fuels

2050

Offsetting

Source: Airbus based on ATAG Waypoint 2050 report (2021) – Scenario 3: “aspirational and aggressive technology perspective”

In Europe, the EU Green Deal creates conditions and opportunities for the Company and the European aviation industry to speed
up the transition: the Company shares the ambition to reach a net-zero carbon aviation ecosystem in Europe by 2050, and willcontribute to the EU’s “2030 Climate Target Plan”. At international level, the Company actively supports and strongly encourages
ICAO to introduce a global ambition by setting a meaningful long-term aspirational goal to reduce CO2 emissions from international
civil aviation, whilst maintaining a global level playing field.

Airbus / Registration Document 2021

67

1. Information on the Company’s Activities /1.2 Non-Financial Information

The Company’s roadmap to reducing emissions
The Company believes that an approach which focuses on
accelerating technological development, in complement to a
dynamic deployment of SAF, should be pursued. This would forma strong basis for the development of hydrogen-powered aircraft
and the associated infrastructure and minimise the recourse tooffsetting to achieve the ambition.
The Company is investing in and focusing its efforts on fivecomplementary strategic pathways to reduce its environmental
footprint, in support of the overall sector ambition as highlighted
above. In 2021, the total research and development spend of
the Company amounted to € 2.7 billion.
Strategic pathway 1. Renew current fleets with bestin class aircraft
The Company is continuously improving its products throughnew designs, advanced materials, upgraded systems andmore fuel-efficient engines. Thanks to significant investments
into new aircraft technology and designs, the Company’scommercial aircraft products have reached a rolling averageof 2.1% fuel efficiency improvement annually over the pastten years, exceeding targets set by the industry through ATAG
– see graph 3.
The Company’s commercial aircraft portfolio includes the mostefficient aircraft product line:–– A350 and A330neo offer 25% reduction in fuel burn andsignificantly reduced noise footprints versus the previous
generation of aircraft;–– the A320neo family brings a 20% reduction in fuel burn, andnearly half the noise footprint compared to previous generationof aircraft;–– A220 offers 25% reduction in CO 2 emissions per seatversus previous generation of small single-aisle aircraft, 50%
reduction in noise footprint and 50% fewer NOx emissions
than the standards.

Graph 3:
Averagemetric (gCO2 e/pax.km) of sold products
Intensity
metricintensity(gCO2/pax.km)

80

75

70

The average emission
intensity of delivered
commercial aircraft has
decreased by 21%
in the last 10 years

65

60

55
2011

2013

2015

2017

2019

2021

Delivery year

This continuous improvement is also reflected by the Company’scontribution to Europe’s CleanSky2 programme, with the use of
new materials as well as the design and implementation of newaerostructures and technologies aiming to achieve CO2, NOx
and noise reductions. For this purpose a military aircraft C295
from the Company has been used as an in-flight technology
demonstrator (flight test bed).

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Strategic pathway #2. Investing in technologies enabling
the Company to market zero‑carbon vehicles
The Company is committed to contributing to developing,building and testing advanced technologies improving the
aerodynamic and structural efficiencies combined with advanced
propulsion systems– to enable the aviation industry to reduce
CO2 emissions of commercial aircraft, helicopters and future
urban air mobility vehicles.

1. Information on the Company’s Activities /1.2 Non-Financial Information

Zero-emission commercial aircraft ambition

The Company’s work in electric flight has laid the groundworkfor our future concept of zero-emission commercial aircraft.
The Company believes hydrogen is one of the most promisingtechnologies to reduce aviation’s climate impact. If generated
from decarbonised electricity through electrolysis, it generates
little-to-no CO2 emissions and would essentially allow aviation
to be powered by decarbonised energy.
Aviation will be an end use application of hydrogen. The Company
sees two primary uses for hydrogen:–– Hydrogen can be combusted through modified gas-turbine
engines, or converted into electric power via fuel cells. The
combination of both would create an efficient hybrid electric
propulsion chain powered entirely by hydrogen.
–– Hydrogen used to create eFuels (power-to- liquid or powerbiomass-to-liquid synthetic fuels in combination with carbon
from biomass or enhanced carbon sink sources).
On 21 September 2020, the Company revealed three differenthydrogen-powered “ZEROe” concept aircraft. Those illustrate
the research that the Company is investing in, with the objective
to bring a zero emission commercial aircraft to market in 2035.
From hydrogen propulsion to hydrogen-based synthetic SAF,
from pod configuration to blended-wing aircraft, the Company
is evaluating, maturing and validating radical technologicalbreakthroughs which could be hosted on its zero-emission
aircraft by 2035.
The Company is also investing in the required facilities to test these
new technologies. Inaugurated in October 2019, the E-Aircraft
System House (“EAS”) is, with more than 3,000m2, the largest
test house dedicated exclusively to alternative propulsion
systems and fuels in Europe. This means the Company can
now test the latest electric motors and hybrid-electric engines
directly on its own premises, and develop its own low-emission
alternative propulsion units.
The Company goes beyond technology maturation bycollaborating with the appropriate ecosystems. In 2019, theCompany signed a Memorandum of Understanding with airlines
such as SAS Scandinavian Airlines and easyJet to jointly researcha zero-emission aircraft eco-system and its infrastructure
requirements. The Company is also part of several majorhydrogen alliances (such as the Hydrogen Council, Hydrogen
Europe, European Clean Hydrogen Alliance etc.) and launcheda joint-venture in 2020 with ElringKlinger in order to benefit fromthe huge cross-industry experience of other industries, andaccelerate its ambition.
Zero-emission urban air mobility ambition

Since 2014, the Company has been exploring how recent
technology advancements – from battery capacity and autonomy
to electric propulsion – could help drive the development of new
kinds of aerial vehicles with the potential for zero emissions whenpowered by renewable energies. In May 2018, the Company
created the Urban Mobility entity to take its exploration into
cutting-edge commercial urban air mobility solutions andservices to the next level.
The idea for a compact “flying taxi” first came from the Company’s
desire to take city commuting into the air in a sustainable way.
Airbus has learned a lot from the test campaigns with two
demonstrators: CityAirbus and Vahana. The CityAirbus NextGen
revealed at the Airbus Summit in September 2021 combines

1

aspects of both, with the new architecture striking a balance
between hover and forward flight. The prototype is paving theway for first flight in 2023 and certification expected around 2025.
Beyond the vehicle, Airbus is working with partners, cities, andcity inhabitants in order to create the ecosystem that is essential
to enabling this new operating environment to emerge in a true
service to society.
Strategic pathway #3. Investing in smart ATM solutions
and optimised operations
Improving the efficiency of air transport operations andinfrastructure could contribute to emission reductions by around
10%. The Company therefore supports initiatives aimed at
reducing ATM inefficiencies (such as the Single European Sky
Air Traffic Management Research programme – SESAR), whileworking on disruptive practices, such as formation flying.
Through its subsidiary Navblue, the Company provides services
helping its customers to minimise fuel consumption with best
operational practices, innovative services and training. The
Company also focuses on developing fuel saving procedures
for airports and ground operations to minimise the use of engine
power and auxiliary power units (APU) while the aircraft is on
the ground.
In November 2019, the Company launched the fello’fly project
which aims to demonstrate the technical, operational andcommercial viability of two aircraft flying together for long-haul
flights. Through fello’fly, a follower aircraft will retrieve the energy
lost by the wake of a leader aircraft, by flying in the smooth
updraft of air it creates. This provides lift to the follower aircraft
allowing it to decrease engine thrust and therefore reduce fuelconsumption in the range of 5-10% per trip. By end 2020, theCompany’s fello’fly had signed agreements with two airline
customers; Frenchbee and SAS Scandinavian Airlines, as wellas three Air Navigation Service Providers (ANSP) to demonstrate
its operational feasibility; France’s DSNA (Direction des Services
de la Navigation Aérienne), the UK’s NATS (National Air Traffic
Services) and European Eurocontrol. In November 2021, two
A350 test aircraft conducted the first-ever transatlantic fello’fly
flight, confirming the potential for fuel savings of more than 5%
during long-haul flights.
Strategic pathway #4. Developing and deploying SAF,
with all aircraft types 100% SAF compatible before 2030.
Energy source is the main driver in the CO2 emissions and CO2
intensity of products coming from the Company’s commercial
aircraft activity. Although they only represent a small share ofaviation’s current fuel use, SAF (biomass-based or synthetic) are
key in the air transport sector decarbonisation strategy.
Since 2008, the Company has acted as an important catalyst in
the certification process, demonstration flights, partnerships andpolicy advocacy of sustainable jet fuel. Since 2011, over 360,000
commercial flights have used SAF and more than 1 million flights
with SAF are expected by 2025 (source: IATA, flynetzero, 2021).
All the Company’s commercial aircraft are already certified to fly
with a fuel blend of up to 50% SAF. SAF produced by using mostadvanced pathways can provide CO2 emission reductions of up
to 80% throughout their life cycle. This means that already today
the emissions from aircraft currently offered by the Company
could be reduced by ~40% if their full blending capability wasused. The Company’s ambition is for its commercial aircraft to

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69

1. Information on the Company’s Activities /1.2 Non-Financial Information

be capable of being operated with 100% SAF before the endof the decade (third scenario on the chart below, “Full aircraft
potential”).

partnerships promoting the development of SAF production anduse (World Economic Forum Clean Sky for Tomorrow Coalition
and First Movers Coalition as examples).

As detailed above (see “Aviation industry targets”), the Company
supports decarbonisation scenarios which include an ambitious
rollout of SAF using all possible pathways (HEFA, Alcohol to Jet,
Fischer Tropsch, Power to Liquid, etc.). Under such scenarios,
the Company estimates that products delivered in 2021 could
see their life-time emissions reduced by around 17%, thanks
to the gradual introduction of SAF during their operational life
(second scenario on the chart below, “Anticipated SAF rollout”).

Strategic pathway #5. Encouraging temporary CO2emission compensation schemes
Finally, CO 2 emission compensation will be instrumental tostabilising aviation emissions in the medium term until disruptive
solutions reach market maturity. For that reason, the Company
supports ICAO’s CORSIA as the only global market-based
measure for international civil aviation.

The Company is involved in two main research projects: VOLCAN
and ECLIF3, conducted in partnership with important actors of
the industry. Both aim at assessing the impact of 100% SAF on
engine and fuel systems whilst measuring the positive impact
on aircraft’s emission and fuel efficiency. First test flights took
place in 2021 and the final outcomes will be publicly publishedby the project partners once available. Both projects will pave
the way for going beyond current maximum blending levels
for SAF (currently 50%). It will allow the Company to collectinformation and enable further research activities and technicalwork in order to reach the goal of gaining 100% SAF certification
for commercial flights.

Reporting of emissions from value chain

However, today the price and global production capacity
remain the main constraints for operators, preventing largescale incorporation of these types of fuels. The rapid scale-upof SAF plays a major role in aviation’s decarbonisation scenarios,
decreasing emissions of the Company’s products in use.
As of 2021, 36 countries have implemented SAF policies tosupport industry’s ambition, according to IATA. The Company
supports policies that would incentivise their production andusage at affordable costs and is engaged in many initiatives andScope 3 Use of sold products
The main contribution of the Company’s value chain on climatechange comes from the use of sold products, especially related
to its commercial aircraft activities.
In order to provide the level of transparency expected bystakeholders and following recommendations from the TCFD,
the Company reports in-use emissions of the products it delivers(Scope 3 – Use of sold products). This started in 2020 with thedisclosure of emissions from commercial aircraft products, andwas extended to civil helicopters in 2021. The Company willcontinue to progressively extend the scope of reporting to otherfamilies of products, for which the calculation methodologies
are still under development. Nevertheless, current results
and advanced estimations have shown that the vast majority(over 90%) of the Scope 3 – Use of Sold Product impact of theCompany’s products is due to the commercial aircraft family of
products, and that this situation is unlikely to change once all
the product families will have been assessed.

Fig. Scope 3 emissions reduction levels in potential SAF scenarios, in My CO 2 e
Assuming constantCurrent SAF usage(0.1%)

Impact of Anticipated
SAF rollout

as per ATAG Waypoint 2050 F4

Full aircraft
potential(50% SAF with 80% abatement)

464
383

278

Commercial aircraft products
In 2021, the Company delivered 611 commercial aircraft.
Based on an average life-time in service of around 22 years(average life-times specific to each aircraft type were used in thecalculation), the total CO2 emissions for these products over theiranticipated life-time is estimated at around 460MtCO2e (of whicharound 80Mt are linked to upstream fuel production), whichtranslates to an average efficiency of 62.6gCO2e per passengerkilometre. In 2020, the Company delivered 566 aircraft with

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Airbus / Registration Document 2021

resulting estimated life-time emissions of around 440MtCO2e(of which 80Mt are linked to upstream fuel production) andaverage efficiency of 63.1gCO2e per passenger-kilometre.
For the purpose of this calculation, the operating conditionsof the aircraft were considered to be static over the wholeservice life. Therefore, the numbers above do not reflect the
anticipated gradual introduction of decarbonisation measures
such as SAF, and as a result constitute a “worst case scenario” in1. Information on the Company’s Activities /1.2 Non-Financial Information

terms of carbon intensity. As such they represent an unmitigatedscenario that can only serve as a general basis to assess carbon
emissions efficiency improvements over time.
In order to better understand the potential impact of SAF on
scope 3 emissions, this chart shows three scenarios comparing
the current SAF usage, an ambitious deployment scenario as
envisaged by ATAG and the maximum reduction potential as
allowed by the current 50% blend limit.
The Company calls for a sectoral alignment on thesemethodological aspects through the relevant international bodies,in order to provide consistency in the way such impacts arecalculated and communicated throughout the air transport sector.

1

Civil helicopters
In 2021, for 192 civil helicopters delivered, the Company
estimated a scope 3 “use of sold product” impact around1.13 MtCO 2e, of which around 0.20 MtCO 2e are linked to
upstream fuel production. In 2020, for 201 civil helicoptersdelivered, the resulting scope 3 “use of sold product” impact
was around 1.09 MtCO2e, of which around 0.19 MtCO 2e arelinked to upstream fuel production. In 2021, the internal forecastof flying hours used for the calculation was updated, resulting
in a slight increase in emissions despite the lower number ofdeliveries compared to 2020.

Methodology-- The Company’s emission calculation methodology was developed by a team consisting of key personnel from the engineeringand environment departments and is aligned with the guidance provided by the Greenhouse Gas Protocol. The external auditor
performed a review of the calculation methodology applied by Airbus and assessed the reasonableness of the supporting
assumptions.

-- The Company has used a number of assumptions based on internal and external information including assumptions based on
publicly-available data:-- For commercial aircraft these assumptions include the aircraft load factor, the current penetration rate of sustainable aviation--

fuels, their CO 2 reduction potential and the indirect emissions index from jet fuel production, emission factors, as well as
aircraft operational usage and average in-service lifetime. Primary data collected within the Company was also used, such as
the type of sustainable aviation fuel considered or aircraft performance and configuration parameters;
For civil helicopters, these assumptions include feedback from the market in terms of helicopters operations such as flight
hours per year and region where the helicopter is operated. Direct and indirect emissions are included over the product’s
entire service life. Emission factors are consistent with those used in the commercial aircraft methodology. Sustainable
Aviation Fuel impact is not considered.

-- Civil helicopters considered for Scope 3 calculations correspond to helicopters produced during the year having reached the“available for flight” status.

Key Hypothesis-- The estimation includes CO emissions. Emissions related to CH4 and N2O were excluded given the very low levels produced2by modern aircraft engines. Emissions related to NOx were estimated and excluded given the uncertainty related to the NOx
emission factors and the relatively low contribution of this emission stream.

-- Emissions related to commercial aircraft engine start and taxing have been included, however, emissions from the auxiliary
power units (APU) and ground handling equipment have been excluded.

-- For helicopters, the flight hours model is directly derived from in-service helicopters.
Scope 3 Purchased goods and services
In 2021 for the first time, the Company has published an estimate of the GHG emissions arising from the goods and services itpurchases (Scope 3 – Purchased goods and service based on its 2020 spent). The Company estimates that the 2020 emissionsof purchased goods and services were around 11.3MtCO2e.
Methodology-- This evaluation was performed using a dedicated tool developed by the International Aerospace Environmental Group (IAEG)
offering a choice between two approaches: a “spend based” approach, allocating emissions to each amount spent in specificcommodities and a “mass based” approach, allocating emissions to quantities of materials purchased. For this first evaluation,
the Company has used the “spend based” approach. While this method embeds a certain degree of uncertainty, consideredhigh by the IAEG on a certain number of emissions factors used in the methodology, it provides a relevant view of the sources of
GHG emissions in the Company’s supply chain and enables comparison of the various Company’s scopes throughout its value
chain. The calculation will be refined in future years as better quality data becomes available.

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1. Information on the Company’s Activities /1.2 Non-Financial Information

Sustainable space products
Beyond commercial aviation, the Company’s Defence and Space
Division delivers satellites and intelligence that informs decision
making on significant environmental issues. Its aerial imagery ofclimatic and environmental changes around the planet reveals
the scale of change and dependencies at work.
The Company is working to ensure a sustainable spaceenvironment to prevent space debris and protect valuable
national assets, such as satellites, that are in orbit around theglobe.

The Company through its Defence and Space Division is thefirst company to test technologies which clear out space junkand avoid spacecraft collisions. Three main debris-removal
technologies have been tested in orbit: harpoon, net andvision-based navigation. As space law evolves, the Company
is committed to ensuring its products meet these new regulations(such as the French Space Operations Law requiring to avoid
satellite collisions and ensure the safe removal of spacecraft fromuseful orbit at the end of life) as it believes in the importance ofpromoting sustainable space

1.2.3 Build Our Business on the Foundation of Safety and Quality
a. Aviation and Product Safety
I.

Introduction

The Company believes that everyone in the aerospace industry
has a role to play to further enhance the safety of the air transportsystem. Flying today is safer than ever before, and collective
efforts continue to ensure that it will be even safer by anticipating
and responding to risks, threats and challenges. Whilst thefoundations of the air transport system are built on regulatorycompliance, the safety culture at the Company goes beyond
compliance with certification and continued airworthiness
Aviation / Product Safety

requirements to also focus on safety enhancement activities in
products and services. This also extends to the products andservices of the Company’s Defence and Space Division thatoffer communication, collaboration and intelligence knowledge
solutions to assist government authorities, emergency service
providers and healthcare providers. For further information, see“– Information on the Company’s Activities – 1.1.4 Defence andSpace”.

GRI

SASB

SDGs

416 – Customer
Health and Safety

Product Safety

12

Highest governance body(ies)involved

Product Safety Board (PSB), involving several Executive Committee members

Related Corporate Policies

Airbus Product Safety Company Policy (A67)

Management system
Relevant certifications

OthersSMS

Corporate Safety Management System

Products

EASA regulation (Parts 21/145/147/M/ORA), EU 996/2010, EU 376/2014(for Commercial Aircraft products), ECSS-Q ST-40-C (for Space Products)
and Def-Stan 00-56 (for Defence Products)
EN9100, EN9001, EN9110, AQAP 2110, AQAP 2210 and AQAP 2310

Operations

Key metrics

2020

2021

Fatal accident rate Industry
wide(1)0.04(Gen4)

0.03 (Gen4)% SMS officers nominated

100%

100%

92%

100%

% SMS officers trained
Metrics assumptions(1) 10 year moving average fatal accident rate (per million flights) per aircraft generation.

Additional resources

Code of Conduct , Product Safety on Airbus.com , Safety in Operations on Airbus.com ,Safety investigation on Airbus.com , Health Onboard , Accident Statistics website

II. Governance
A dedicated safety organisation within the Company acts as anindependent voice of safety. The Chief Product Safety Officer
for the commercial aircraft activities of the Company reports
directly to the CEO and is the Chairman of the Product Safety
Board (PSB). Several Executive Committee members and senior
executives are part of the PSB. This ensures proactive safety72

Airbus / Registration Document 2021

decision-making is based on multidisciplinary assessments at
the highest decision level of the Company. The PSB makes
decisions regarding technical aspects, safety governance andstrategy. Regular reviews with the Board of Directors are also
performed.

1. Information on the Company’s Activities /1.2 Non-Financial Information

Airbus Safety Management System

III. Risk Management

Consistent with ICAO Annex 19, the Company’s Corporate Safety
Management System (“SMS”) is based on the four ICAO pillars:
safety policy and objectives, safety risk management, safetyassurance, and safety promotion. The Company’s Corporate
SMS principles also integrate the end-to-end approach to safetywith the Company’s suppliers and operators. This is facilitatedby an appointed Corporate SMS Officer and SMS Officers
per function with support from a network of nominated SMS
Representatives throughout the Company.

Applying proactive risk management principles has contributed
to significant improvements for the safety of flight in recent
decades. This risk management approach drives the Company’s
Corporate Safety Process, which has been in place for morethan 15 years. It supports the principles of the Company’ssafety enhancement culture, going beyond compliance withcertification and airworthiness duties.

During 2020-21, Airbus Defence and Space evolved its Product
SMS by adapting governance principles from established Airbus
Commercial and Military Airsystems SMS to all of its programmelines, including cybersecurity systems, land communications,surveillance systems, drones and more. Programme Line Safety
Boards and a shared online reporting tool have been established.
Implementation is ongoing.

Consistent with its end-to-end approach and as part of its safety
strategy, the Company has several collaborative initiatives that
contribute to reinforcing resilience capabilities in the air transportsystem and enhancing the safety level of its products with all
key actors.

Airbus Safety Strategy
To support the Airbus vision for safety – “we constantly strive toenhance safety together in our quest to reach zero accidents.” –the Company’s product safety strategy is to:–– implement programmes to continuously enhance the safety
culture to ensure each employee has a personal and collective
engagement consistent with the Airbus safety values;–– provide means so that any employee can report safetyconcerns;–– ensure product safety is a priority in decision making, and–– share lessons learned and best practices with internal andexternal stakeholders, and take action as appropriate also
based on identified top safety threats or opportunities.

Regulatory Compliance
Product certifications are provided by the competent aviation
authorities including the main civil aviation authorities and specificmilitary authorities. Within each Division, and according to theirrespective functions, the Company works to ensure compliancethrough design and certification of products under EASA Part 21
Design Organisation Approvals (DOA); ECSS-Q ST-40-C (forSpace Products) and Def-Stan 00-56 (for Defence Products);
manufacturing under Production Organisation Approvals (POA);
monitoring of in-service safety through approved EASA Part-M
Continuing Airworthiness Management Organisations (CAMO);
aircraft maintenance and retrofit operations conducted in linewith civil and military EASA Part 145 regulations; and training
provided to flight crews, cabin crews and maintenance crews
through EASA Part 147 Approved Training Organisations (ATO).
The certified organisations within the Company where specificapprovals are granted by the aviation authorities, are audited
and monitored by these authorities to ensure compliance withregulatory requirements. Additional audits are conducted bythird parties as part of the quality certifications appropriate toeach Division, including EN9100, EN9001, EN9110, AQAP 2110,
AQAP 2210 and AQAP 2310.

Commitment to “Just and Fair” Culture
This commitment ensures that the appropriate reporting
channels are available and known to all employees to report
product safety and quality related matters in an atmosphere oftrust and empowerment. It is documented and endorsed withthe signatures of the CEO, Executive Committee members andtop management.

1

IV. Implementation/Activities

For example, the Company is working with its supply chain toextend its safety enhancement principles with its suppliers.
This includes specific SMS forums and initiatives with its
suppliers, which reinforce the collaborative approach for
optimising responses to in-service feedback and reports.
D10X (short for Air Transport Safety, Destination 10X Together)is another collaborative initiative with airlines. The aim of D10X
is to propose pragmatic solutions, together with operators of
Airbus aircraft, for the key safety issues identified within thisnetwork.
Sharing safety information is a key contributor to increasing thelevel of safety. There have been 25 flight safety conferenceswith the Company’s customers since the first was held in 1994.
Another means of sharing information is through “Safety first”, theCompany’s safety magazine contributing to the enhancementof safety for aircraft operations by increasing knowledge andcommunication on safety related topics. It reaches over 1,000
aviation professionals daily via the website safetyfirst.airbus.com
and the Safety first app.
In addition to these external safety promotion initiatives,
the Company invests in internal safety promotion with theobjective to continuously reinforce the safety culture of all
employees. This is supported by different means including
communication campaigns, training, safety awareness sessions,and development of a Safety Promotion Centre. SMS officers
are nominated and trained in all key business functions toensure implementation and operation of the SMS within the
Company, including safety promotion. As of 31 December 2021,
all SMS officers have been nominated and trained. The abovementioned commitment to a just and fair reporting culture isanother example of an initiative that promotes the Company’ssafety culture. These elements are integrated in the Company’s
SMS action plan.
Airbus also continues to innovate to benefit from technologicalevolutions to further enhance both operations and safety.
All of these initiatives lead to continuous improvement of thesafety record. This is illustrated in statistics (below) showing thatthe latest fourth-generation jets are the safest. All Airbus Fly-ByWire family aircraft (including A320, A330/A340, A380, A350,
A220 fleets) are the latest fourth-generation aircraft.

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73

1. Information on the Company’s Activities /1.2 Non-Financial Information

10 Year moving average fatal accident rate (per million flights) per aircraft generation
1,25
1.11
1,00

0,75

0,50

0,25
0.15
0.03

0,00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Generation 2

Generation 3

Generation 4

Fig. (above) 10 year moving average fatal accident rate (per million flights) per aircraft generation.
Source of Data: official accident reports, ICAO, Cirium, and Airbus databases. Flight cycle data provided by Cirium.

b. Cyber Security
I.

Introduction

Cyber security risks have the potential to impact all business
operations, employees, plus products and services if incorrectly
managed – either in confidentiality, availability or integrity. As
such, the company undertakes a continual process of cybersecurity risk identification and remediation, supplemented withsignificant cyber security capabilities for the prevention, detection
and response to cyber threats and events.
Cyber security risk management is a core element of modern
organisations, thus the Company has developed state of theart cyber capabilities for the defence, detection and response

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Airbus / Registration Document 2021

to emerging cyber threats. The cyber security paradigm adopts
a compliance, regulatory and risk-based approach embedded
across four asset bodies: IM, industrial, products & services,and people & workplace.
Developing cyber security as a function of the business, with therelevant capabilities and stakeholders, ensures an evolutionary
approach for continued protection against emerging threats
and to support the business in securely enabling its digitaltransformation.

1. Information on the Company’s Activities /1.2 Non-Financial Information

Cyber security

Highest governancebody(ies) involved

CRI

SASB

SDGs

Data Security

9, 12

1

OthersCorporate Security Council
Digital Security Team (cyber Security Validation Body)
A08 - Airbus Company Security Policy
A1044 - Security Requirements for Company Information & Data Classification and Protection
A1058 - Security Requirements for Information Systems Management

Related Corporate
Policies and Directives

A1043 - Security Requirements for Affiliates
A 1664 - Security Requirements for Industrial Automation and Control Systems
A 1666 - Requirements for Product Security
A1015 0 - Requirements on Information Security for Suppliers
A1015 1 - Specific Requirements on Information Security for IT Services Providers
MC AS - Manage Airbus Company Security - aligned to ISO27001 standard

Management system

MC AS 01: Monitor Identify & Report Company Asset Vulnerabilities
MC AS 02: Assess & Treat Company Asset Security Risk

Key metrics
Number of data breaches reported to data authorities

2020

2021

1

1

Percentage involving confidential information

100%

100%

Cyber security awareness training e-learning participation (started 1 Jan. 2020, reporting period 1 Oct.-30 Sep.)

10,32867,475

Corporate & IM Cyber Security Headcount

216,5

290

II. Governance
The Company has undertaken a cyber security transformation
since 2019 with the establishment of a federated model todigital security encompassing accountable leaders in respective
organisational structures such as IT, engineering and operations.
A dedicated team for security governance was established,reporting to the company Chief Security Officer (CSO),
responsible for the definition and audit of cyber security directives
and methods aligned to major industry standards such as
ISO27001 or IEC62443. The company Chief Information Security
Officer reports to the CSO with a direct reporting line to Airbus
CEO. Such an approach ensures localised accountability andreactivity to cyber risks with centralised governance, reporting,technical standards, and processes. Cyber security governancescope encompasses all Divisions and global operations plus
affiliates.

Corporate Security Council
The Company has established a Corporate Security Council,
chaired by the Chief Security Officer, for the coordination of
security governance and to ensure consolidated security risk
reporting from each of the four asset clusters; IT, industrial,
product & services, and people & workplace.

Security governance directives
Security directives are published and audited to ensure thecompany business, including affiliates and subsidiary companies,
follows the same standards for data protection and systems
security. Key cyber security directives include:–– A08 – Company Security Policy;–– A1044 – Security Requirements for Company Information &Data Classification and Protection;–– A1058 – Security Requirements for Information Systems
Management;–– A1043 – Security Requirements for Affiliates;–– A1664 – Security Requirements for Industrial Automation andControl Systems;–– A1666 – Requirements for Product Security;–– A1015.0 – Requirements on Information Security for Suppliers;–– A1015.1 – Specific Requirements on Information Security for
IT Service Providers.

III. Risk Management
Confidentiality, integrity and availability are well-known to definecybersecurity objectives when thinking about systems risks.
Corporate Security owns the accountability of security risk
management and is in charge of defining cyber security riskstaxonomy and managing the lifecycle in ERM, including strategy,organisation, roadmap and initiatives at Company-wide level.
In terms of cyber security, risk management is the aggregationof continual risk reporting, cyber security validation processes
embedded within security by design principles for projects,
applications and infrastructures – in addition to the implementationof digital security controls aligned to the Airbus enterprisesecurity architecture standards.
Risk mitigation measures follow the principle of people, process,and technology controls to reduce likelihood and/or impact
from cyber incidents. The Company incorporates mandatory
cyber security training and awareness for all employees withadditional engagements for employees in higher risk categories
or where additional regulatory stipulations apply. Security
processes are fixed through security governance directives,
business management processes (e.g. MC.AS.01 Vulnerability
Management), and operating models. Technical security controls
are implemented and measured in accordance with ISO27001
and other industry standard information security management
standards.

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The Company implements a number of key technical security
controls in the reduction of cyber incident likelihood including therollout of endpoint protection and data loss prevention tools, theimplementation of multi-factor authentication, plus the adoptionof enterprise security architecture approaches. To reduce impact
from cyber events Airbus operates in-house security operations
centers, covering both commercial and national activities; plus a
Computer Emergency Response (CERT) team analysing cybersecurity threat intelligence and activating to rapidly investigate
and contain cyber security incidents.
Cyber security risk management is under regular internal andexternal audit, confirming processes and implementation toboth Airbus and Industry standards. Technical audits are also
conducted regularly on applications, systems and infrastructuresin the form of cyber security penetration testing.

IV. Implementation/Activities
During the course of 2021, a number of key initiatives havebeen undertaken to improve the cyber security position, reduce
associated risks and decrease the likelihood of successful cyberattacks, including:–– 100% coverage of core Divisional Company-issued laptops
deployed with Endpoint Detection & Response (EDR) tools;–– 100% of employees now able to access Google client side
encryption tools for encryption of the company data in Google
suite;–– 35 of 35 high risk supplier connections now successfully
migrated to the new standard secured supplier architecture;–– Restricted CERT extension devised to ensure cyber incident
response coverage across both commercial and national
infrastructures.

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Such activities have successfully reduced the Company’s
overall cyber security risk picture, and specifically related to theincreasing threat from ransomware.

V. Outlook
There are no signs globally that the threats of cyber attack
will dissipate or slow; therefore it is critical that the Company
maintains ongoing improvement and response activities in orderto reduce associated risks. A number of key initiatives are central
to this including:–– Ransomware resilience: as one of the major risks, efforts
continue with major investments into ransomware prevention
in order to reduce both the likelihood of an incident, but also
to significantly increase the resilience and reduce the time torecover critical applications and systems;–– International localisation: extending the federated model of
security to encompass international localisation of affiliateswith enhanced risk reporting;–– Secure digital transformation: enable digital transformation via
the design development and deployment of updated security
standards for cloud security, application hardening and zerotrust networking;–– Security Operations Centre (SOC) 2025 strategy: detecting
and rapid response to cyber incidents is a key part of any
security practice: thus Airbus will maintain and continue toscale the SOC activities to the needs of the business.

1. Information on the Company’s Activities /1.2 Non-Financial Information

1c. Health and Safety
I.

Introduction

The Company considers health and safety as a top priority that is non-negotiable. Our goal is to enable an environment that’s
safe and healthy for all. Risk prevention and the promotion of safer and healthier conditions in the workplace are key to enable us
to improve the health and well-being of our employees and anyone else who works inside Airbus. By focusing our attention on
this, it also helps to improve the nature of the task, working conditions, competitiveness, quality, engagement and sustainability.
Health and Safety

GRI

SASB

403 Occupational
Health and Safety
Highest governance body(ies)involved

Board of Directors / ECSC
Executive Committee

Related Corporate Policies

Occupational Health and Safety Policy A41, Airbus Code of Conduct

Management system

Formal Health and Safety Management Systems

Relevant certifications

ISO45001: certified sites cover~ 25% of employees

SDGs

Others8, 12VigilancePlan

Key metrics (More in the ESG Data Board)

2020

2021

Lost-Time Injury Frequency Rate

3.81

3.21

Lost-Time Injury Frequency Rate – Commercial Aircraft

5.12

4.31

Total health and safety training hours delivered

103,070

128,795

Number of employees who received health and safety training

37,59928,144418

1,309

Near-miss – Commercial Aircraft

19,305

Number of employees having attended “EH&SCertificate” modules 1&2
Core entities with ISO 45001 or similar certification~ one third% of the company-wide workforce covered

25%

Remuneration

The Lost Time Injury Frequency rate at group level included in the variable remuneration for the Company
CEO and executives. 2021 target was achieved.

KPI assumptions

Metrics are reported Company-wide (FISH perimeter) unless stated otherwise. Reporting period
for training-related metrics: 1 October to 30 September

Additional resources

People Safety on Airbus.com ; Code of Conduct – incl. Health and Safety commitment

II. Governance
The Airbus Occupational Health and Safety Policy is a groupwide foundation for the management of health and safety within
the workplace. The Policy applies to the Company’s commercial
aircraft activities, to the Airbus Helicopters and Airbus Defence
and Space Divisions, and also to the Company’s affiliates.
In 2021, an Airbus Occupational Health and Policy Statement
was signed by Guillaume Faury, Airbus CEO, to enhance andreinforce the Policy principles.
The health and safety organisation is part of the Human
Resources and Workplace Department under the ultimate
responsibility of the Company’s Chief Human Resources Officer.
The organisation is called Environment, Health and Safety(EHS). The Head of EHS reports to the Chief Human Resources
Officer, and is supported by local EHS business partners.
There are also regional EHS business partners in China, North
America and APAC. Cross-organisation expertise, support andcoordination is provided by centres of expertise, including safety,
industrial hygiene, ergonomics and operational environmentand occupational health and wellbeing. The EHS organisation is
responsible for the health and safety management system andfor the operational application of the corporate environment andsustainability management system in the entities.

Approximately one third of the Company’s core entities in homecountries are now certified to the ISO45001 Standard for healthand safety management systems or have a similar certification.
Company wide, this means that nearly 25% of employees workon sites where the health and safety management system iscertified to ISO45001. Other sites have formal management
systems that are not yet formally certified, but operate to thestandards required by our health and management systems.

III. Risk Management
The role of the Airbus’ health and safety organisation is toanticipate, identify, evaluate and prevent or mitigate risks tosafety, health and well-being, and the business, arising as aconsequence of the Company’s work activities.
Health and safety requirements have been defined in a directivethat applies company-wide, including to the Company’s
affiliates. The Company’s affiliates report on their health andsafety management status through the Internal Controls Self
Assessment (ICSA) exercise.
Occupational health and safety risks are managed using theframework provided in the Company Methods for “Healthand Safety Risk Management” and “Incident Management”.
Those risks that are considered to have a high potential impact,

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77

1. Information on the Company’s Activities /1.2 Non-Financial Information–– Substances and materials, such as those addressed in
REACH regulation.
–– Psychological risk, including from the impact of COVID-19
confinement and the related Company adaptations.
–– In-situ contractors, including competence, interfaces and sitetransport.

including in Airbus affiliates, are monitored by the Company’s
Enterprise Risk Management (ERM) system.
In 2021, the Company-wide method for risk assessment andcontrol was updated. This method consists of a sequence of
logical steps to identify significant hazards, evaluate the risks
and prevent, eliminate or mitigate them, following the hierarchyof control principles: elimination, substitution, engineering
control, administrative controls and, as a final measure, personal
protective equipment.

The impact of the ongoing COVID-19 pandemic is a continuingchallenge. However, the main causes of occupational injury in
2021 were once again related to slip, trip and fall accidents,
ergonomic incidents, and the use of hand tools and equipment.
These represented the majority of injuries recorded on the FISH
(Federated Information for Environment, Safety and Health),
global environment, health and safety platform. In fact, slip, trip,
and fall accidents resulted in 25% of the lost time injuries includedin the lost time injury frequency rate.

The method for reporting and managing incidents and nearmisses has also been refreshed. It harmonises incident reporting
between countries, taking into account applicable local
regulations. The investigation and root cause analysis processdescribed in this method supports the identification of risks andrelated mitigation actions.

Employees and others on Airbus sites can raise health and safetyconcerns in a variety of ways. Employees can raise a near miss orincident declaration in FISH using a computer or mobile device.
Line managers can share warnings and good practices using ared, amber, green flash alert process. A “go-look-see” process
helps managers to identify risks and related mitigation actions.
To support the promotion of a “speak-up” culture, the Company
has the OpenLine to provide employees and third parties withan avenue for raising concerns.

The principle health and safety concerns in 2021 consisted of
the following topic areas:–– COVID-19 and the necessary adaptation of work activities;–– Working environment including for example, work at height;
slip, trip and fall risks; site roads and infrastructure.
–– Machinery and equipment, such as hand held powered tools,
cranes and jigs.
–– Physical agents, including noise, vibration and electricity.

IV. Implementation/Activities
The overall incident management harmonisation process is enabling improvements in data collection, analysis and the productionof reports. This supports the Company-wide key performance indicators.
Airbus and its Divisions rolling 12 months employee lost time injury frequency rate
6

5

4

3.73

3.54

3.48

3.50

3.61

F

M

A

M

3.59

3.57

3.45

3.40

3.38

A

S

O

3.22

3.21

N

D

3

2

1
0
J

J

J

2021
AIRBUS78

Airbus / Registration Document 2021

1. Information on the Company’s Activities /1.2 Non-Financial Information

The rolling year of the lost time injury frequency rate end of year
figure amounts to 3.21 Company-wide and to 4.31 in Airbus,
excluding the Divisions. Company-wide Airbus experienced
a more than 15% improvement in frequency rate. It has been
positively impacted in 2021 as a result of the various safety
activities and actions taken linked to the pandemic. Frequency
rate figures are reviewed monthly by the CEO and the Executive
Committee and the data shared with all executives and senior
managers in a monthly webinar.
The FISH incident management module already covered allmain sites in Airbus and its Divisions in France, Germany andSpain, and in the UK the Airbus commercial aircraft and theAirbus Defence and Space Division sites. It also covered theAirbus commercial aircraft plants in Mobile, US and in Tianjin,
China. This year the FISH incident management module has
been extended to cover the Airbus Defence and Space Division
in Poland. Around 80% of the Company employees including theactive workforce, the apprentices and the temporary employees
are estimated to be covered under the FISH platform. The FISH
perimeter continues to be progressively extended.
The work on incident management has reinforced the reportingof near misses. This has led to a total of 19,305 near misses being
declared on FISH in the Airbus commercial aircraft activities.
The investigation of near misses identifies cause agents andmitigation actions that support incident prevention measures.
Activity to mitigate risks is promoted and deployed throughdifferent channels. Most importantly, the Company stimulates
behavioural change, in particular through its “People Safety @Work” (PS@W) project in Airbus commercial aircraft, the “WeCare initiative” in Airbus Defence and Space Division and the“Safe Together” initiative in Airbus Helicopters Division. This
embeds a culture of continual improvement in workplace healthand safety performance. Examples of particular campaigns
include:–– “Team Talk” packages enable managers to discuss safetywith their teams.
–– Videos illustrating our safety golden rules.
–– Campaigns to support a safe return to work after a long breaksuch as summer holidays.
–– Site Safety Awards to motivate and engage employees.
–– Mindset and behaviour workshops.
–– Safety weeks and safety mobilisation days, often topic specificand led by senior managers.
–– ’Safety Box’ (safety activities) and “Safety Lab” (safety
discussions) sessions, in both face to face and virtual meeting
modes due to COVID-19.
–– Testimonies by employees who have suffered accidents atwork.
–– Transparent sharing of safety related information, such as
frequency rates and “Flash Alerts”.
–– Mandatory EHS training.
The Company “Safety Ambassadors” knowledge, competences
and roles have been reinforced. This network comprises around
1,900 members, and is a significant enabler for culture change.
They spread best practices and support activities such as theimplementation of COVID-19 measures.
At the operational level, the Airbus commercial aircraft operating
system (AOS) includes an assessment grid to evaluate theenvironment, health and safety maturity level in operational
areas. This reinforces the activity to reduce risk, driving theimplementation of initiatives such as the PS@W trip hazards

1

removal, mobile steps safety and site traffic infrastructure
improvements.
In 2021, the virtual classroom portfolio was further developed,
in particular to cover some of the elements of statutory training
such as First Aid, and we will continue to develop moredigital enabled learning solutions. Consequently, despite thechallenging environment of the ongoing pandemic, over 128,795
hours of dedicated health and safety training were delivered
to 28,144 individual employees between October 2020 and
September 2021.
Managers at all levels are required to attend the “Airbus
Environment and Health & Safety (EHS) Leadership Certificate”.
This intensive course has four modules, which, if completed withina certain timescale, lead to an externally validated “Environment,
Health and Safety Certificate”. The EHS Leadership modules
1 and 2 were therefore prioritised for the virtual classroom
format in 2021. The development of modules 3 and 4 will takeplace in 2022. A total of around 2,300 employees have now
attended these modules since 2019; 1,309 of which in between
October 2020 and September 2021.
The “Executive Environment and Health & Safety Masterclass”
ensures that the Company top leaders are equipped to drive thestrategy of continual improvement in health and safety culture
and performance. Overall some 451 executives and seniorleaders have completed the Masterclass from October 2020
to September 2021. In the same period some 82 executives,
mainly from the plant and final assembly lines, have attended
the practical and hands-on “Back to the Floor” training, whichenables leaders to proactively and positively engage on safetyissues on the shop floor.
Occupational health and wellbeing are key priorities for theCompany, as evidenced by the construction of purposedesigned occupational health facilities at Broughton, UK, andat Getafe, Spain, which were completed in 2021.
Naturally COVID-19 has continued to be a critical risk to people
and the Company. Mitigation activities have included:–– Providing and maintaining guidance on the core barrier
measures, supported by awareness campaigns and material
including posters, videos and e-learning modules.
–– Supporting national vaccination programmes, where possible.
Around 19,500 people were vaccinated on Airbus sites inFrance, Germany, Spain, UK, the USA and China.
–– More than 17,900 COVID-19 tests have been performed on
employees in Germany and France, with particular hygiene
and testing procedures for delivery teams.
–– An employee “COVID-19 Hotline” and case management has
been provided by Occupational Health teams.
Whilst certain health initiatives and check-ups were impacted
by the COVID-19 situation, key monitoring campaigns weremaintained. Psychological health continues to be a focus. In
addition to the employee helpline services and the availability ofpsychologists, training was provided for topics such as mental
health awareness and addiction prevention. Support material
has also been made available on the Company intranet pages.
With regard to substances, the “REACH-IT” project hascontinued in Airbus’ commercial aircraft business, together
with similar initiatives deployed in the Divisions. Manufacturing
processes, tools and workstations have been reviewed in light of
the REACH authorisation measures for the protection of health,safety and the environment. Now there is a progressive transfer

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79

1. Information on the Company’s Activities /1.2 Non-Financial Informationof this work into operational management systems, to ensure theongoing maintenance of conformity. A compliance surveillance
programme will be launched in 2022.

V. Outlook
As part of the health, safety and operational environment “2030
Flightpath” vision, we aim to promote and provide standards
that are above our minimum legal compliance requirements.
Consequently, in 2022 the Company will continue to reducerisk of work-related injury, ill-health and environmental impact,by improving management system elements, monitoring anddata analysis.
The Company will therefore continue to increase the geographicaldeployment and technical scope of the FISH platform to support
a strategy of data-driven risk analysis and mitigation. In particular
the incident management module is planned for deployment insites in North America and the Asia Pacific region.

As the corporate ISO45001 based occupational health and safety
management system matures, a company Health and Safety
Governance Board is planned, to maintain clear oversight andsteer the “zero harm” ambition. At national level, occupational
health review panels are also planned, to address topics such as
occupational disease cause analysis, risk mitigation strategies
and emerging competency requirements. The Company willcontinue to strengthen its efforts to enhance wellbeing andmental health protection.
Further key performance indicators (KPI) are to be introduced,
including health KPIs. The FISH platform will enable a wider
use of the all injuries frequency rate and the leveraging of near
miss data.

1.2.4 Respect Human Rights and Foster Inclusiona. Human Rights
I.

Introduction

A commitment to respect human rights
As a signatory to the United Nations Global Compact since 2003,
the Company is committed to upholding international humanrights principles and standards, including the International Billof Human Rights, the International Labour Organization’s (“ILO”)
Declaration on Fundamental Principles and Rights at Work andits Core Labour Standards. In doing so, the Company aims to
implement policies and processes that respect applicable law
in the countries in which we operate and take into acccount the
UN Guiding Principles for Business and Human Rights, and theOrganisation for Economic Co-operation and Development’s(“OECD”) Guidelines for Multinational Enterprises.

80

Airbus / Registration Document 2021

“Respect for human rights” was prioritised by the Company
as one of the four sustainability commitments agreed by the
Executive Committee and the ECSC at Board level during 2020.
The Company’s actions to progress its ambition to “embedand advance respect for human rights throughout its business,
operations and supply chain” follow recommendations identified
through a human rights impact and gap analysis conducted by aspecialist external human rights consultancy in 2019. This analysis
considered current and upcoming regulatory requirements andinternational best practice as well as international principles andstandards, including the UN Guiding Principles for Business andHuman Rights. Details of these actions follow.

1. Information on the Company’s Activities /1.2 Non-Financial Information

Human Rights

GRI

SASB

SDGs

412 Human Rights
Assessment

Others1

OthersVigilancePlan

4,5,8,16Highest governance body(ies)involved

Board of Directors / ECSC
Executive Committee

Related Corporate Policies andReference Documents

Code of Conduct; International Framework Agreement; Airbus Supplier Code of Conduct

Commitments to take into accountexternal standards and frameworks

International Bill of Human Rights, ILO’s Declaration on Fundamental Principles and Rights at
Work and its Core Labour Standards, OECD Guidelines for Multinational Enterprises, United
Nations Guiding Principles

KPIs

TargetTarget
year

2020

2021

% of investigations completed or in progress(1)100%Permanent

100%

100%

-

% of sites having undertaken a social assessment(2)

100%

2026

6%

14%

+8pp

% of findings closed within 18-months(3)100%Permanent

100%

100%

-

Other key metrics

2020

2021

2021
v. 2020

Number of participants to human rights trainings – Cumulative, reporting period:
1 Oct -30 Sep(4)

4,943

5,789

+846

5

4

-1

Number of alerts of human rights concerns(5)2021
v. 2020

KPI and metrics assumptions:(1) Following reports of concerns linked to forced and child labour and other labour rights.
(2) % of the Company’s sites with over 100 employees, cumulative since 2020, undergoing a social assessment including human andlabour rights.
(3) Following social assessments including human and labour rights, carried out on the Company’s sites.
(4) Cumulative number of participants who have completed e-learning modules on human rights and modern slavery since 2018.
(5) Including forced labour and labour rights (received via OpenLine and other means) from internal sources or through the Company’s
supply chain
Additional resources

Code of Conduct , Supplier Code of Conduct , Modern Slavery Statement , Human Rights on
Airbus.com ,OECD Guidelines for Multinational Enterprises , ILO Declaration on Fundamental Principles
and Rights at Work

II. Governance
The EVP Communication and Corporate Affairs has top level accountability for human rights at Executive Committee level. During2021, following formalisation of the Company’s governance arrangements for human rights in 2020, the Company held a numberof meetings and presentations to support and advance respect for human rights. These included:
Governance

Number of meetings during 2021

Key responsibilities

Human Rights Multi-Functional Team,
chaired by the Global Lead for Human
RightsTarget 6
Achieved 6

Ensuring the development and delivery of the humanrights roadmap, including actions against agreed
targets and support for awareness raising and capacity
building.

Human Rights Steering Committee,
chaired by the Head of Sustainability
and Environment

Target 3
Achieved 3

Providing strategic guidance to support decision
making and prioritisation, as well as providing guidanceand support on progress.

Specific presentation on human rights
at the Executive Committee

Target 2
Achieved 3

Agree and guide the strategic direction of theCompany’s human rights ambition, agree and guidethe prioritisation of initiatives and resource allocation for
implementation and review the status and effectivenessof actions in progress (including roadmap/targets/KPIs).

Specific presentation on human rights
at the ECSC

Target 1
Achieved 2

Make and support decisions on identified salient issues
and emerging significant risks, make and support
decisions on key trends / legislation and provide
feedback and steering as required.

The Company will review its governance on human rights as it moves from policy-setting into implementation.

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1. Information on the Company’s Activities /1.2 Non-Financial Information

Human rights policy
Building on the human rights commitments and expectations thathave existed in various key documents for many years (including
within the Airbus International Framework Agreement signed in
2005, the Company’s Code of Conduct and Supplier Code of
Conduct), a key focus for 2021 included efforts to consolidate
commitments to human rights standards and principles as well
as expectations in this respect (aligned to international humanrights standards and principles including the United Nations
Guiding Principles for Business and Human Rights, the ILO Core
Conventions on Labour Standards and the OECD Guidelines forMultinational Enterprises), into a specific internal human rights
policy. The Company expects to finalise the policy in 2022.
In addition a number of internal and external stakeholders
have supported the creation of the policy including divisionaland functional representatives of the Human Rights MFT and
Steering Committee and members of the Legal & Complianceteam. When finalised, the Company intends to have the policy
endorsed by the SE-WC which represents The Company’s
European social partners. Externally the policy has beenreviewed by representatives from specialist expert human rights
organisations, academics and civil society.
The human rights policy will help further embed due diligencethroughout the Company through the creation of a specific
Human Rights Management System and associated Directive.
A key focus for 2022 will also include the development ofmethods and guidelines to support policy adherence as wellas communication and associated training prioritising high riskfunctions.

III. Risk Management
Risks related to the salient issues were embedded into theCompany’s risk portfolio in the frame of the Company’s ERM
system and an associated action plan developed to identify,
assess and address identified impacts. Actions are reviewed
regularly by the Human Rights MFT and any salient issues
requiring particular focus are escalated to the Human Rights
Steering Committee as well as the Executive Committee and
ECSC as required. An update of actions related to the Company’ssalient issues follows, with further actions progressing throughout
2022. Taking into account that salient issues may change overtime due to internal and external influences, the Company iscommitted to reviewing them annually.

Salient Human Rights Issues
Salient Human Rights Issues-- Impact of products and services on the rights
to life and liberty(passengers and citizens)-- Data privacy(individuals and their personal data)-- Transition to decarbonisation(supply chains)-- Forced and child labour and labour rights(contractors and supply chains)-- Diverse and inclusive workplaces(Airbus workforce and contractors)

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Airbus / Registration Document 2021

The Company’s salient human rights issues (see box with
impacted groups in parenthesis) were initially identified througha human rights impact and gap analysis carried out in 2019. This
identification was based on a benchmark of industry peers andcompanies in similar industries and an analysis of stakeholder
expectations, including consideration from a rights-holder
perspective. These issues were reviewed, updated and validated
during 2020 through the Human Rights MFT and engagementwith a number of key external stakeholders, including humanrights NGOs, academics/researchers and industry groups.
–– Impact of products and services on the right to life andliberty (passengers and citizens): Actions are ongoing. A
multifunctional and cross-divisional team is currently reviewing
how to integrate risk-based human rights due diligencethrough existing processes and tools.
–– Forced and child labour and other labour rights (contractors
and supply chain): Key activities to mitigate the risk of forced
and child labour and other labour rights in the Company’s
supply chain included the roll out of the Company’s revised
Supplier Code of Conduct, with strengthened expectations
on forced and child labour as well as other human and labour
rights and a requirement for suppliers to formally confirm
adherence to the Supplier Code of Conduct and to cascade
the principles throughout their supply chain. In addition, theCompany took actions to strengthen its supply chain due
diligence including updated risk mapping (country and activity)
and a review of its risk identification and alert management
process. For further information, see “– 1.2.6 Responsible
Supply Chain”.
–– The transition to decarbonisation (supply chain): 2021
was dedicated to identifying the key areas of risk that theCompany’s transition to decarbonisation may create, affecting
in particular human rights. The identified areas include thepotential impact on local communities of the production of
Sustainable Aviation Fuels (SAF), offset initiatives or specificminerals required in the development and manufacturing of
new technology. The Company is already engaged in various
coalitions (e.g. the Roundtable for Sustainable Biomaterials
and the International Sustainability and Carbon Certification)
to ensure that human rights dimensions are considered inthese areas.
–– Inclusion and diversity: During 2021 actions to progress thissalient issue included agreeing a “25 by 25” gender diversity
ambition to increase female representation at executive levelsof the Company, creating a robust pipeline including specificleadership programmes for women, such as “MyWay” and, tosupport inclusive leadership, a mandatory Unconscious Bias
training module was rolled out for all employees (with a target
to achieve 100% by end of 2021). For further information, see“– 1.2.4b Inclusion and Diversity”.
–– Data privacy: During 2021, the data privacy team continued
to implement and improve the data privacy programmethroughout the Company. Actions were taken to ensure thatthe international transfer of personal data is completed in linewith new requirements. Further steps were taken to ensure
that, prior to contracting, suppliers processing personal data
on behalf of Airbus are vetted and the appropriate mechanisms
put in place to ensure they process data in line with legal
requirements.

1. Information on the Company’s Activities /1.2 Non-Financial Information

Due diligence

IV. Implementation/Activities

During 2021, the Company began to strengthen its risk-based
human rights due diligence taking into account the OECD Due
Diligence Guidance for Responsible Business Conduct. Thisfocus, which will continue throughout 2022, included:–– supply chain due diligence;–– due diligence within the Company’s own operations;–– product and service due diligence (focused on the Company’s
Defence Division).

Awareness raising and training

Social assessments (focused on humanand labour rights)
During 2021, the Company conducted a number of onsite social
assessments focused on human and labour rights covering its
own sites. These onsite assessments were carried out using an
independent third-party social assurance provider consistent
with the assessments carried out in the Company’s supply chain.
Building on the initial pilot carried out during 2020, eight sites(against a target of four) undertook a social assessment during2021 in countries including Germany, Belgium, US, France, Italy,
Malaysia, China and the Philippines. The sites were selectedbased on an analysis of country risk using publicly available
indices (including child labour, forced labour and labour rights), thetype of activity (prioritising production facilities) and the numberof employees. In addition, any alerts relating to human rights
coming from other sources, including the ICSA process, andupcoming legislative requirements were also taken into account.
The Company has a target to ensure that all findings are closed
within an 18 month period following assessment. In addition,in order to strengthen its due diligence process, the Company
has set a target to ensure that 100% of its sites with over
100 employees are assessed for human and labour rights risks
by the end of 2026.

Supply chain
The Company continued to assess its supply chain for any
concerns related to human rights, including forced and childlabour and other labour rights, throughout 2021. For further
information, see “– 1.2.6 Responsible Supply Chain”.

Grievance and remediation
During 2021, the Company continued to promote its “speak-up”
culture for human rights concerns, including reinforcement of
the use of its OpenLine confidential reporting system, within its
revised Supplier Code of Conduct (see “– 1.2.6 Responsible
Supply Chain”).
If an allegation of human rights breach received from within the
Company or through its supply chain or other third party business
relationships is found to be substantiated, remedy would besought through a variety of mechanisms. If an alert is received
via its OpenLine reporting system, the Company commits toacknowledge receipt of the report within two business days.
The Company has a global network of internal investigators,
tasked with investigating allegations, including those relating
to human rights such as forced or child labour, or labour rights
and working conditions.
During 2021, the Company investigated four alleged cases ofconcern related to forced labour and other labour rights fromwithin the Company’s supply chain. All of the cases are closed
as either unsubstantiated or with a consequential action. The
Company will continue to investigate any new alerts during 2022.

1

During 2021, the Company continued to raise awareness ofhuman rights including through the promotion of its dedicatedtraining on human rights and modern slavery which is available toall employees in four languages. During the period October 2020–
September 2021, 846 participants undertook this training(5,789 in total since its launch), which included information on
how to identify the signs of human rights abuse and what to
do if anybody has concerns. In addition, two dedicated virtualawareness sessions were run for the heads of subsidiaries(attended by 140 people) to raise awareness of human rights
which included practical examples of how to identify and reportrisks. The sessions were recorded so that those not able toattend directly could review the recording.
A dedicated e-learning module on human rights, targeting senior
managers, including the heads of subsidiaries and controlled
affiliates, was produced in 2021 and will be rolled out during2022. In addition a new e-learning module will be created for all
employees to raise awareness of human rights with the intention
that this becomes mandatory to all employees from 2023.
Additional topic-based training relating to human rights is alsoavailable to all employees of the Company, a number of which
are mandatory, including data privacy and inclusion and diversity
topics such as unconscious bias.

Stakeholder engagement and collaboration
During 2021, the Company joined the Global Business Initiativeon Business and Human Rights (GBI), a specialist peer learninggroup focused on advancing respect for human rights throughout
the world. As part of its membership, the Company also took
part in two dedicated workstreams: downstream due diligenceand tracking and measurement, the progress of which wereshared with other GBI members.
The Company is also a member of a number of industry tradeassociations which during 2021 held focused discussions on
progressing human rights within the aerospace and defence
industry. These include the BDSV (German Industry Associationfor Security and Defence), ASD (the Aerospace and Defence
Industries Association of Europe), GIFAS (French Aerospace
Industries Association), ADS (UK Industry Association for
Aerospace, Defence, Security and Space) and TechUK (theUK’s technology trade association).
The Company also engaged with a number of external
stakeholders on human rights in order to advance the topic
through external collaboration. These included academics,
researchers, civil society organisations, officials and peers. A
number of discussions with the Company’s investors on the
topic of human rights also took place during 2021, including on
the topic of forced labour.
In addition, an update of the human rights roadmap was alsopresented to key internal stakeholder groups including theSocietas Europaea Works Council (“SE-WC”) and the European
Committee for Airbus Defence and Space (“ECADS”) comprisingsocial partners from across the Company’s European sites.
During 2021, the Company’s Defence and Space Divisioncontinued to work with the UK’s University of Nottingham
Rights Lab on a project to monitor supply chain human rights
challenges across sectors including maritime, agriculture andmining. Analysis of EO satellite imagery helps to identify supply

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1. Information on the Company’s Activities /1.2 Non-Financial Information

chain human rights issues, such as flagging suspicious activities
for further investigation, or can act as additional evidence forreported supply chain issues. The Division has also started
to scope its own supply chain risk assessment tools for theCompany by integrating satellite imagery derived intelligence withadditional reported data from third parties on potential supply
chain human rights risks.

Regulatory complianceDuring 2021, the Company undertook an analysis of current
legislation related to human rights including the French Devoirde Vigilance Law and the Modern Slavery Acts in the UK andAustralia. In addition, the Company undertook an analysis of
relevant upcoming legislation including the German Act on
Corporate Due Diligence Obligations in Supply Chains. Actions
to fill any identified gaps will be undertaken throughout 2022.
During 2021, in accordance with the UK Modern Slavery Act
and the Australian Commonwealth Modern Slavery Act, theCompany published a Modern Slavery Statement outlining theactions it had undertaken to mitigate modern slavery risks in its
global business, operations or supply chain. This Statement was
published on the UK Government and Australian Government
websites as well as the Company’s website. In addition the
Company completed the UK Ministry of Defence (MoD) Modern
Slavery Assessment Tool.

V. Outlook
During 2022, the Company will continue its focus on embedding
and advancing its commitment to respect human rights
throughout its business, operations and supply chain. Specificongoing actions include:–– finalisation of the Company’s human rights policy;–– embedding human rights commitments throughout theCompany;–– further progressing risk-based due diligence within the
Company;–– prioritising actions based on the Company’s Identified salient
human rights issues (to be reviewed in 2022);–– progressing social assessments focused on human and labour
rights throughout the Company’s sites;–– capacity building with key teams including development oftraining, communication and awareness raising;–– ensuring alignment of actions with current and upcoming
legislation.

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b. Inclusion & Diversity
I.

Introduction“Respect Human Rights and Foster Inclusion” is oneof the four sustainability commitments. This priority reflects thefocus the Company puts on Inclusion & Diversity (“I&D”) and is
illustrated by the 137 nations and 20 different languages that its
employees represent.
An I&D position statement outlines the Company’s commitments
to creating a safe and inclusive culture, including zero tolerance
to discrimination and harassment, whilst the Company’s Codeof Conduct and Supplier Code of Conduct expresses the
expectations towards both employees and suppliers in thisrespect.
In line with the Company’s values, a comprehensive I&D strategy
drives the Company’s approach to embedding I&D focusing on
intergenerational, ethnic, social and cultural diversity as well as
gender equality, LGBTQ, neurodiversity and disability-friendly
policies and hiring practices. The I&D strategy aims to ensurethat the Company:–– creates a safe environment and inclusive culture wherecollaboration, empowerment, continuous learning andaccountability are promoted and valued. The Company has
zero tolerance for harassment or discrimination of any kind;–– attracts, recruits, develops and retains a large and diverse
pool of talent. This talent is a reflection of our customers andsuppliers base as well as the communities around us;–– develops a thriving work environment supported by its values
system, leadership model as well as a Code of Conduct
understood and practiced by all;–– is committed to have a positive long-term sustainable impact
not only in the aviation sector but also in the communities wework in by being signatories to the SDGs.

1. Information on the Company’s Activities /1.2 Non-Financial Information

Inclusion & Diversity

GRI

SASB

405 Diversity and Equal
Opportunity
406 Non-discrimination
408 Child Labor
409 Forced orCompulsory Labor

1

SDGs

Others4, 5, 8, 16

Vigilance
Plan

Highest governance body(ies)involved

Board of Directors / ECSC
Executive Committee / Inclusion & Diversity Board

Related Corporate Policies
and Documents

Human Resources Airbus Company Policy
Airbus Code of Conduct, Airbus Supplier Code of Conduct

Airbus commitments to take into
account external standards orframeworks

Universal Declaration of Human Rights, OECD Guidelines for Multinational Enterprises, ILO
Conventions

KPIs

TargetTarget horizon

2020

2021

2021
v. 2020% of external hires to be female

33%

yearly

26%

22%

-4%

Other key metrics(More in the ESG Data Board)

2020

2021

2021
v. 2020

Women in active workforce

18%

19%

1%

Board of Directors

25%

25%

stableExecutive Committee

16%

25%

+9%

Executives

13%

14%

+1%

Senior Managers

14%

16%

+2%

Additional resources

Code of Conduct – incl. non-discrimination commitment , Inclusion and Diversity on Airbus.com ,Airbus International Framework Agreement – incl. Equal Opportunities commitment
UN Women’s Empowerment Principles – CEO Statement , AD CEO statement ,LGBT+ Charter with L’Autre Cercle Association for an inclusive work environment for LGBTQ+ people
France Gender Pay Gap Statement 2020 , UK Gender Pay Gap Report , Airbus UK I&D Agreement ,Women in Aviation and Aerospace Charter ; Women in Defence Charter
Partnerships supporting people with disabilities (Atouts pour tous , Handisup , Handiproconseil )II. GovernanceIII. Risk Management

The I&D team is part of the “DEVELOP Center of Expertise”
within the Human Resources function and represents each of theCompany’s Divisions, with regional I&D focal points supporting
the implementation of the I&D strategy globally.

Any identified risks related to I&D are recorded in the Company’s
ERM and appropriate action plans agreed. Progress is reviewed
quarterly.

An I&D Advisory Board, chaired by the Chief Human Resource
Officer with representatives from the Executive Committee andother Divisional and regional executives, meets quarterly andprovides top level oversight and input into the I&D strategy as
well as reviews risks or issues raised, providing support on new
initiatives, processes or changes to policy and make appropriate
recommendations to the Executive Committee.
In addition, local I&D (including disability) steering committees,championed by senior leaders and executives in the regions,provide additional support to embed and advance the I&D
strategy locally and provide valuable input to the I&D team andAdvisory Board. The steering committees are supported bya network of diversity Business Champions embedded in thebusiness and who advocate for inclusive leadership.

In addition, any alerts related to I&D raised via the Company’s“speak-up” culture, including its OpenLine reporting system, areinvestigated in accordance with the Company’s investigation
process.

IV. Implementation/Activities
The Company supports various national and international
initiatives such as International Women’s Day and since
2018 we have committed to the UN Women’s Empowerment
Principles aimed at empowering women to participate fullyin economic life. The Company has also led the “Women in
Aviation and Aerospace Charter” and has been instrumental
in the development of the “Women in Defence Charter”
which demonstrates the commitment of a growing number oforganisations across the industry to build a more balanced andfairer industry for women. In addition, in 2020 the Company
launched a “Management Basics & Leadership Foundations
Programme” to ensure that inclusive leadership becomes thenorm at all levels. In addition our Corporate Gender diversity
leadership development launched a cohort dedicated to 50
women leaders of tomorrow. To date this programme has trained
over 170 women, including the current cohort.

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1. Information on the Company’s Activities /1.2 Non-Financial Information

The Company is also accelerating change through its employeeled “Balance for Business” network, which has around
10,000 volunteer members worldwide. Initiatives run through thisnetwork include roadshows promoting employee-led initiatives
such as peer-to-peer mentoring, confidence building andencouraging employees to challenge stereotypes and build theircareers. The network also supports some outreach initiatives.
Other employee-led networks such as the Women Innovative
Network (“WiN”), the Airbus Africa Network, Spectrum (Racial
diversity and inclusion), Pride@Airbus (LGBTQ+), Generation-A(Millennials), Seniors Talent and (Dis)Ability ambassadors
networks are key to raising awareness of I&D, promoting
inclusion, equal rights and increasing visibility. Initiatives include
mentoring, leadership development of under-represented groups
as well as conferences and discussions open to all employees.
The annual Ability Weeks campaign aims to raise awareness on
disability across the Company and worldwide. This includes aseries of workshops and awareness sessions on topics suchas: digital accessibility, workplace adaptations, mental healthcare. During 2021 more than 1,600 employees participated inlive workshops, and over 50 events were organised worldwide.
Our Airbus Humanity Lab also showcased prosthetic blades
made from recycled carbon from our production lines.
Highlighting that being unique is valued and that difference iswelcome, the Company ran an awareness campaign during 2021
to promote awareness of the importance of digital accessibility
for employees with disabilities as a means for inclusion.
The Company also engaged in various social diversity
programmes during 2021 in partnership with a number ofdifferent associations to promote quality education andmentorship for young people from underprivileged areas. For
example, the Company participated in the “La France, unechance. Les entreprises s’engagent!” initiated in 2018 by the
French government to encourage business to get involved inhelping everyone find their place in society by, for example,
recruiting from underprivileged areas promoting education
learning and responsible purchasing and creating a link between
these underprivileged areas and businesses.
During 2021, the Company disclosed its gender pay gap as
required through both French and UK legislation and continues
to put measures in place to ensure gender pay parity worldwide.

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V. Outlook
Priorities for 2022 include continuing the Company’s focus ongender parity. Upcoming actions on I&D include:–– eliminating systemic barriers during talent recruitment,
development and management;–– agreeing on targets for external recruitment of women, external
recruitment from non-EU countries and external recruitmentof people with disabilities;–– extending leadership development programmes to include a
focus on I&D and in particular on gender diversity;–– increasing awareness and training on inclusive leadership andunconscious bias;–– leveraging and reinforcing business ownership andaccountability through the Company’s network of diversity
champions;–– continued support to encourage STEM studies for young
women in schools and universities through mentorship,tutorship, directly or through the associations sponsored by
the Company.

c. Labour Relations
I.

Introduction

In 2021 again, the Company has continued its numerous
discussions, consultations and negotiations with its social
partners, sometimes on a daily basis in order to discuss company
transformation projects aiming at adapting to the evolving
situation partly resulting from the health and economic crisis.
These various transformations were carried out in line with thecommon principles and standards of the ILO convention, theOECD Guidelines for Multinational Enterprises and the principles
laid down by the UN Global Compact.
Employee relations are underpinned by the Company
commitments made in the Company’s Code of Conduct andthe Airbus International Framework Agreement, signed in 2005.

1. Information on the Company’s Activities /1.2 Non-Financial Information

Labour Relations

GRI

SASB

SDGs

402 L abor /Management
Relations

1

Others8, 16, 17Highest governance body(ies)involved

Executive Committee

Related Corporate
Ref Documents

Airbus Code of Conduct, International Framework Agreement, SE-WC agreement (updated 2018)

Airbus commitments totake into account external
standards and frameworks

ILO’s Declaration on Fundamental Principles and Rights at Work and its Core Labour Standards, OECD
Guidelines for Multinational Enterprises

Key metrics

2020

Number of meetings
with SE-WC (agreement says
four per year)

8% workforce coveredby collective bargaining
agreements
Additional resources

2021
12

ca 80%
Code of Conduct , Airbus International Framework Agreement
ILO’s Declaration on Fundamental Principles and Rights
OECD Guidelines for Multinational Enterprises , the Global Deal Initiative

II. GovernanceIn the International Framework Agreement (“IFA”), the Company
reaffirms its willingness to respect the regulation regarding
fundamental human rights, equal opportunities, free choice of
employment, as well as prohibition of child labour and respectand ensuring the conditions for social dialogue.
The Company intends, via its agreements, to respect thedisposition of the following ILO conventions: numbers 111(discrimination – employee and occupation), 100 (equal
remuneration), 135 (workers’ representatives), 29 (forced labour),105 (abolition of forced labour), 182 (child labour), 138 (minimumage), 87 (freedom of association and protection of the right toorganise) and 98 (right to organise and collective bargaining).
The head of each business is responsible for ensuring compliancewith these principles. The provisions of this framework agreement
define the Company’s standards to be applied wherever theCompany operates provided they are not in contravention of
local law, insofar as more favourable conditions do not exist
already. Dedicated processes ensure that the provisions of thisagreement are not breached wherever the Company operates.
The Company is in continuous dialogue with social partners on its
sites in Europe, principally through meetings with management
at the European Committee level but also through meetings andnegotiations at national or local level. Sites outside Europe arealso covered by the Company’s IFA framing the social dialogue
and social culture in line with local labour legislation, culture andpractices of respective countries.
Regular social dialogue is ensured as per ILO requirements andlocal legislation and Company agreements about social dialogue,
for instance in Europe, thanks to the Company’s SE-WC
agreement which was updated in 2018.
Labour relations and social dialogue are fully part of the Company’s
DNA and therefore, its continuous evolution and improvement
are embedded in the Company’s Human Resources strategy

supporting the Company’s business challenges. Especially, incases of restructuring, the Company strives to limit as much as
possible the negative impacts on its workforce, and considers
employment as a priority.
In line with the Company's global social dialogue strategy andsince 2019, the discussions with its social partners have not
only been assured at local or European level but have also
happened at global level with the creation of the Airbus Global
Forum (“AGF”). In line with the Company’s commitments in termsof Sustainability, the AGF is a clear illustration of the Company’s
engagement for a responsible social dialogue. The seat allocationfor employee representatives is based on headcount distribution
across the globe and conditional to existing legal employee
representation as per applicable regulations and practices in
the relevant countries.
In addition, the Company is an active member of the Global Dealfor Decent Work and Inclusive Growth initiative (“Global Deal”)
that was developed in cooperation with the ILO and OECD.
The Global Deal is a multi-stakeholder partnership between
governments, business and employers’ organisations, tradeunions, civil society and other organisations that seeks to makeeconomic growth work for all against a backdrop of rapidchanges in the world of work.

III. Risk Management
The European labour relations’ management of the four homecountries of the Company (France, Germany, UK, Spain) is alsopart of the Company risk management processes and theserisks are reviewed internally on a regular basis. For example
during 2021, employee relations continued to focus on ensuring
legal compliance regarding national labour laws and investingin training the Company’s HR professionals about labour law.
The Company’s approach to risk management is also reinforcedby the OpenLine reporting system, which allows employees toreport concerns anonymously (where legally permitted).

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1. Information on the Company’s Activities /1.2 Non-Financial Information

IV. Implementation/Activities
During 2021, the Company continued activities aimed atstrengthening collaborative and partnership approacheswith unions in various countries. The main focus has beenon preserving global social dialogue, addressing company
transformation projects, and monitoring the implementationand the effects of the COVID-19 adaptation plan and sharing
our progress about sustainability.

Preserving a Global Social Dialogue
The second AGF took place early July 2021 in a digital format
and has proven again to be an effective exchange platform
between the Company's top leaders in the regions and employee
representatives from its European home countries, Poland,
Romania, Morocco, Tunisia, Brazil, New Zealand, Australia,
Mexico, Canada and China. The AGF agenda triggered insightful
discussions around business highlights including the challenges
and priorities for 2021 and 2022 as well as I&D, People Ethics &Compliance – especially anti-harassment – and the Company's
well-being strategy. It also served as an opportunity to enhance
the perspective of the Company's social partners on local andregional practices with regards to social matters, especially outof the Company's European home countries.
At the Company’s Airbus Helicopters Division, four European
committees have taken place. The main topics have been
the follow up of the Division’s performance and strategy, thesite specialisation strategy and more globally the company
transformation, focusing in particular on competitiveness.
At the Company’s Airbus Defence and Space Division, six
European committees have taken place. The main topics havebeen the follow up of the adaptation plan, known as Future
Planning, including financial competitiveness, the strategy
and performance of the Division with a focus on sustainabletransformation, including the AD 4.1 reorganisation during thelater part of 2021.

Supporting Company Transformation“Reshape Supply chain” (RSC) was one of the major company
transformation projects in 2021, which was subject to numerous
discussions with our social partners at European and local levels.
This project aims at creating two aerostructures companies
of equivalent position and size in France and Germany (ca.
9,500 employees each) to prepare the future of fuselage
aerostructures. As part of the discussions, the SE-WC nominatedindependent external experts to analyse the social, economic andfinancial impact of the project. Based on extensive data analysis
and interviews, the report supported the project’s principles andacknowledged the transparent sharing of information and data
by Airbus management that permitted the experts to formulate
their opinion. The constructive discussions at European andnational level finally resulted in the creation of Airbus Atlantic
as of January 2022. The negotiations about the creation of
the aerostructures company and its impact on the detail parts
activities is continuing with our social partners at company levelin Germany, as well as with IG-Metall as legally required by Works
Constitution Act and Tariff agreements.
In Spain, many discussions took place to address theconsolidation of the industrial activities and the maintenance ofthe full workload in the Province of Cádiz in the CBC work Centre.
National and regional authorities, Airbus, both the internal works
council and main national unions agreed to have a commission
to monitor fulfillment of the agreements.

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Airbus / Registration Document 2021

Finalising the implementation of the COVID-19
adaptation plan
In 2020, COVID-19 adaptation plan discussions resulted in thesignature of various collective agreements by the main unions or
staff body representatives in France, Germany, Spain and the UK
covering all employees in Airbus’ commercial aircraft businesswithin these countries so that the overall adaptation plan could becompleted in 2021 and compulsory redundancies avoided. The
agreements provided for a range of social measures including:trainings, internal mobilities, working time adaptations, voluntary
departure schemes, early retirement and the opportunity to
pursue personal or professional opportunities outside of theCompany, such as business creation as well as dedicated partial
unemployment schemes to be implemented in order to adapt
activities and the workforce in 2021. In particular the signatureof agreements about shorter working week in the UK, longterm partial unemployment in France and the long-term partial
unemployment scheme in Spain (ERTE) have been agreed withthe majority of the social partners. In addition a substantial
portion of jobs have been secured due to external funding for
research and technology programmes, anticipating that thesejobs would be needed in the post pandemic recovery phase.

Preparing the future
The Company is committed to preparing for the future of
employment and working conditions together with the social
partners:
In Spain, the VI CBA (Collective Bargaining Agreement) has
been signed in 2021 with the majority of the social partners
from the commercial aircraft business and its two Divisions
for a four-year period (2020/2023). The main aspects covered
were: salary conditions, working from home, training to face newtechnologies, early retirement scheme and both employment
and gender equality plans.
In France, the Company also started a long-term social dialogue
with employee representatives in 2021 in the frame of a project
named “Reload” which aims at simplifying and harmonising
company agreements related to compensation, benefits, grading,working time duration, health, safety and working conditions tomake them more readable for its people and adapted to theCompany’s challenges. This project aims also at integrating theevolution of the Metallurgic Branch Agreement.
In Germany, apart from the RSC project, the social dialogue wasmainly focussed on ensuring industrial and financial performance
as a foundation for job security and future programmes in a
ramp-up context. Agreements on mandatory work on defined
Saturdays at reduced premium rates (compared to similar
agreements from 2019) have been achieved for 2021. Approvalof additional (flex) capacity is a second brick to ensure ramp-up
activities particularly in production areas.

Enabling for sustainability plans
In Europe, the Company’s social partners were also closely
involved in discussions on the health and safety measures takenin the workplace to protect workers and prevent the spread of
COVID-19. This included the provision of additional personal
protective equipment (PPE), team rotations, homeworking, social
distancing and regular communication particularly on any specialsite measures. The social partners in Europe have also been
informed about the actions taken and the future endeavours of
the Company with regards to the identification and mitigation ofrisks inherent to Airbus activities and those of its suppliers withregards to human rights, environment and health and safety.

1. Information on the Company’s Activities /1.2 Non-Financial Information

V. Outlook
In 2021, the Company maintained the accident frequency rate
as one of the KPIs integrated in its executive and employee
success sharing scheme. It is the Company’s intention tocontinue in this direction; notably it has already engaged further
in discussing with social partners about the possible inclusion ofanother sustainability criteria (CO2) in the remuneration of senior
managers from the year 2022.
The Company will continue its dialogue with social partners,
sharing its strategy and organisational changes and preparing forour evolving ways of working, as it was done in 2021. The RSC
project will continue to be a key area to ensure the successful
creation of an aerostructures company in Germany. Other
key areas will be the ramp-up of our activities in 2022 and thetransformation projects which will be essential to Airbus’ future
successes.

d. People
I.

Introduction

The Company’s people draw on each other’s expertise andexperience and puts all our passion and determination topioneering sustainable aerospace. Human Resources (HR) is
at the heart of the Company.

As of 31 December 2021, the Company’s workforce amounted to126,495 employees (compared to 131,349 employees in 2020),
95.7% of which consisted of full-time employees. These statistics
take into account consolidation effects and perimeter changes
GRI

The decrease in total headcount was the result of the COVID-19
adaptation plan in the Company’s commercial aircraft businessand the already planned restructuring of the Company’s Defence
and Space Division. Consequently, the number of newcomers
had significantly decreased. The decision to restrict new hires
in all businesses impacted by the crisis had been taken and thenumber of leavers had significantly increased as a result of thevoluntary departures in the framework of the adaptation plans.
Despite the crisis, the Company fulfilled commitments towards
candidates already selected prior to the crisis and welcomed
5,655 newcomers. Voluntary departures have triggered anincrease in the Company’s attrition rate, which in 2021, is 7.4%
overall (including subsidiaries) and 12.2% in subsidiaries only.
Reflecting the fact that the Company is an international company,
35.4% of its employees are from France, 31.5% from Germany,
7.7% from the UK and 10.3% from Spain. The remaining 15.1%
are employees coming from a total of 134 other countries. In total,
89.1% of the Company’s active workforce is located in Europe
on more than 100 sites. Furthermore, the Company expects its
workforce to evolve naturally to support the business.

Workforce by business segment, geographic area
The breakdown of the Company’s employees by businesssegment and geographic area, including the percentage ofpart-time employees, is available in “– 1.2.8 ESG Data Board”.

The current priorities of the Company’s HR function are:–– engaging, inclusive and high performing leadership;–– skilled workforce and an agile learning organisation;–– inclusive workplace and simplified ways of working.

PeopleThe workforce of the Company’s Helicopters Division remained
stable in line with its business resilience during COVID-19 crisis,
while the adaptation plans in the Company’s commercial aircraftbusiness and the Company’s Defence and Space Division has
started to materialise with a significant decrease.

SASB

401 Employment404 Training and
Education

SDGs

Others4, 5, 8, 12Highest governance body(ies)involved

Executive Committee

Related Corporate Policies

Human Resources Airbus Company Policy

Key metrics(More in the ESG Data Board)

2020

2021

Total number of employees(1)131,349

126,495

Number of Classroom Training(2)78,44378,984

Number of Digital Training

752,702

967,495

Total training hours(2)

1mn

1.2mn

Average training hours per
employee(2)

10.6

10.8

(2)

1

throughout 2021. Depending on country and hierarchy level,
the average contractual working time is between 35 and 40
hours per week.

Breakdowns are available
in the ESG Data Board(1) The Company’s headcount reporting includes all consolidated companies worldwide. Figures are based on the active workforce, i.e. the number of permanent and shortterm employees, irrespective of their individual working times, and having worked in the last 30 days. The headcount is calculated according to the consolidation quota of therespective companies. The scope for HR structure reporting covers 100% of the Company’s total active workforce from consolidated companies.
(2) Reporting period: from 1 Oct. to 30 Sep.

Additional resources

Code of Conduct , Airbus Global Workforce Forecast Book , Working at Airbus
Airbus International Framework Agreement , European Commission – Pact for Skills
Employer awards 2021: Universum , Glassdoor , Fortune , Top Employer Institute , Forbes

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1. Information on the Company’s Activities /1.2 Non-Financial Information

II. Governance
The Company’s workforce is managed by the HR function thanks
to a set of HR policies and a strong labour structure. HR policies
are discussed and agreed with social partners throughcontinuous and regular meetings at global and local levels. The
overarching Human Resource policy in place is applicable toall employees and provides them with the description of thecore values, mission, vision and top level initiatives for Human
Resources Management in accordance with Airbus Mid-term
Strategic Plan and external requirements.
The Chief Human Resource Officer is a member of the Executive
Committee. HR teams work together across Divisions andgeographical boundaries to support regional activities and adapt
to business needs.

III. Risk Management
Any identified risks related to the workforce and its skills
and development are recorded in the Company’s ERM andappropriate action plans agreed.
In addition, the Company periodically measures the perceptionof its employees on where the Company stands in terms ofcompany culture and engagement through the “My Working
Environment” Company Survey. The employees’ feedback
provides valuable input to define an action plan, leveraging theCompany’s cultural strengths to build on and addressing the pain
points to be improved. The Company culture and engagement
are regularly measured to keep track of the progress and adjust
actions.

IV. Implementation/Activities
People Development and Competence Assessment
The development of all employees is essential to deliver businesssuccess. The Company strives to provide an environment thatoffers opportunities and the means for continuous growth anddevelopment in line with its strategy.
A yearly process derives a short, mid- and long-term competence
strategy out of the Company’s business strategy by:–– anticipating the supply and demand of competencies;–– identifying, securing and developing key competencies;–– creating added value through synergies, networking and bestpractices.
Investments in training and learning are prioritised in relation tothis competence strategy.
In addition, emerging long-term competence needs are analysed– which might not exist today, and for which specific measuresneed to be taken, e.g. with universities. The Company is actively
participating in external forums on competence evolution, suchas the World Economic Forum and European Commission.
In order to ensure quality time is dedicated to discuss employee’s
development, Airbus has, as part of its “manage employee
development” process, implemented the Development Talk,
which is an exchange between the manager and employee that
can take place as often as needed but at least once a year. The
purpose of this talk is to discuss the individual development planof the employee and to bring individual expectations in line withcompany expectations.

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Airbus / Registration Document 2021

Competence Assessment supports employee development andhas to be performed at least every two years.
The company provides to the employee a portfolio of selfawareness solutions and feedback tools, that can be used on
a voluntary basis, to prepare, in advance, the development talkand development plan. All agreed development actions areformalised in the employee development plan which has to bevalidated by the manager. These actions may consist of:–– workplace learning or “on the job solutions” including
development via mobility, project assignment, etc.;–– social learning, such as mentoring;–– Formal training.

Training & mobility
COVID-19 has been destabilising and has had a significant
impact on the Company’s learning activities, resulting fromthe need to reduce cash spend to secure business continuity.
While the various restrictions and national lockdown measures
have limited the Company’s ability to deploy physical classroom
sessions, the Company invested further in its digital learning
platforms to increase digital learning that more than doubled
compared to 2019.
Measures were taken in parallel to adapt physical classroom
training sessions to comply with the strictest health and safetymeasures ensuring the delivery of the mandatory and criticaltraining without disruption to operations. The acceleration of
the digital learning strategy has allowed employees to remain
active in their development during periods of remote working
and partial unemployment (according to social agreements).
In addition, in 2021, to support the skills foundations and Top
Company Objectives, the Company has defined and assigned
compulsory learning plans directly to its employees, covering
Ethics & Compliance, Export Control, Data Governance &Protection, Product Safety, Cybersecurity, Internal Controls,
Environmental Awareness and other topics. This new approachallows us to secure the needed training and awareness on major
company priorities.
In 2021, the Company provided almost 1.2 million training hours
to employees. On top of the physical classroom and digitaltraining, in 2021 more than 39,500 employees benefited fromleadership development and transformation solutions proposedby the Airbus Leadership University. The university continues
to strengthen the Company’s approach to leadership, offering
opportunities for all leaders to drive their development one stepfurther, while accelerating the culture evolution and humantransformation of the Company.
Learning solutions and managerial opportunities are not the only
way to develop people in the Company. Development paths
give also possibilities to employees to develop specific skills,
competence and jobs, such as Project & Program Manager,
Architects & Integrator and Expert career paths.
The Company is also involved in the “Pact for Skills” initiative
launched by the European Commission to address the up-skilling
and reskilling challenge in Europe. It is working together withaerospace and defence industrial companies, public authorities,
and education and training providers, to build common upskilling
and reskilling programmes and explore ways of working togetherin skills partnerships.

1. Information on the Company’s Activities /1.2 Non-Financial Information

Mobility of employees within the Company’s commercial aircraftbusiness and its two Divisions provides overall benefit and value
to the Company. Mobility helps employees develop new skills
and competences and serves the business by bringing new ideas
and broader perspectives to teams while ensuring to have theright skills in the right place to secure the future. In 2021, as ofend of December, more than 10,400 employees have changed
jobs through internal mobility.

Remuneration
The Company’s overall remuneration policy is in line with local
practices and provides employees with a competitive overall
compensation package. It is also an enabler to attract new talents
and retain talented employees contributing to the Company’sbusiness success.
For employees below manager level, collective labour
agreements are applied in the Company’s home countries(France, Germany, UK and Spain). This includes wage levels
and increases, supplementary grants and gratifications (e.g. endof year gratification). Starting at manager level, compensationof employees can contain a variable part. The percentage ofsuch variable pay in total compensation increases at higher
hierarchical levels.
Support for health care, unemployment insurance, nationaland company pension systems as well as social security
contributions are mainly subject to national regulations andregulations implemented earlier by the founding companies.
Some benefits or specific worldwide schemes are implemented
such as sharing the financial and operational success of theCompany with the employees (success sharing scheme) ordeveloping the Company ownership culture (Employee ShareOwnership Plan – “ESOP”).

1

Employee Share Ownership PlanThe ESOP allows employees to participate in the success of theCompany. This plan is an investment option open to eligible*
employees to acquire a certain number of Airbus shares. The
ESOP scheme has been running in different formats since thefoundation of the Company in 2000. The ESOP scheme since2011 is a “share matching plan” in which the Company matches
the number of shares bought by the employee according to
set criteria.
In 2021, more than 54,750 eligible employees from 40 countries
have seized the opportunity to subscribe and now own 1.97 million
shares. (Eligibility rules: an eligible employee in the frame of ESOP
2021 is part of an entity which is at least 50% owned by Airbus,
and has been an employee between 31 December 2020 and
17 March 2021.)

V. Outlook
Starting in 2022 and over the next three years, the Company is
expected to resume recruitment with several thousand positions
to be filled in the different functional and geographical areas of
the Company to support the recovery and future activity growth,
to prepare for the development of future programmes and tocontinue its generational renewal. A quarter of these recruitments
will concern new skills on projects such as those linked to thedevelopment of hydrogen aircraft.
Leveraging global attraction campaigns and strengthening
collaboration with the business to deliver on staffing needs iskey. The staffing challenge will be a joint responsibility between
HR and business to deliver on expectations.
In the meantime, the Company will continuously focus on
people development to close the gap on critical skills needed
and will invest into emerging skills development. The Company
aims at becoming an agile learning organisation as reskilling is
considered as a major part of the learning culture: in the shortterm, to support critical ramp-up projects, and in the long-term
to sustain the acceleration of skills shift driven by the Airbus
context and external trends.

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1.2.5 Exemplify Business Integrity
I.

Introduction

The Company’s Ethics & Compliance programme seeks to ensurethat the Company’s business practices conform to applicablelaws, regulations and ethical business principles, as well as
reinforcing a culture of integrity and speak-up. In 2021, Ethics& Compliance continued to be a top priority for the Company,
following the completion of the first phase of the ongoing
monitorship by the Agence Française Anticorruption within thecontext of the settlement agreements reached between Airbus
and the authorities on 29 January 2020. In its list of priorities forthe year, the Company set the objective to Speak Up, Listen Up
and act with integrity and respect.

Business Integrity

The Company has worked over the past several years to develop
an Ethics & Compliance programme that is structured aroundthe following key risk areas: Business Ethics / Anti‑Corruption
Compliance, Export Compliance and Data Privacy Compliance.
Each of these areas is, in turn, supported by dedicated compliancepolicies and a team responsible for their implementation, together
with the identification and proposal of new measures to adapt
to a constantly evolving regulatory landscape.
Improving the Ethics & Compliance programme remains a
constant and ongoing process, in cooperation with otherfunctions within the Company, in order to sustain and capitaliseon our values.

GRI

SASB

SDGs

205 Anti Corruption

Business Ethics

16

Highest governance body(ies)involved

Board of Directors / ECSC
Executive Committee

Related Corporate Policies
and reference documents

Anti Corruption Policy, Responsible Lobbying Charter
Directives: see below, section III. Risk Management
Code of Conduct, Supplier Code of Conduct

Airbus Commitments totake into account external
standards

IFBEC’s Global Principles of Business Ethics, FX Global CodeOthersKey metrics

2020

2021

Number of employees per appointed Ethics & Compliance Representatives

390

372

% of employees (non-Exec) who have completed the E&C training objective

80%

90%

Number of E&C e-learning sessions delivered to employees (Reporting period: from 1 Oct. to 30 Sep.)

309,682

284,774

Number of data privacy e-learning sessions delivered to employees (Reporting period: from 1 Oct. to 30 Sep.)(1)35,073

9,547(1) In 2021 the reporting period was changed, from calendar years to Oct-Sept periods, and led to restate past year figures accordingly.

Additional resources

Airbus Ethics & Compliance webpage, including CEO statement , Airbus Values
Anti Corruption Policy , Responsible Lobbying Charter , Airbus’ commitment on the protection of
Personal Data , Code of Conduct , Supplier Code of Conduct , OpenLine , Compliance at Airbus
IFBEC website , Global Foreign Exchange Committee website

II. Governance
The Ethics & Compliance organisation is part of the Legal
Department under the ultimate responsibility of the Company’s
General Counsel. The aim is to provide strong governancethroughout the Company with the global presence of qualified
Compliance officers who ensure the Ethics & Complianceprogramme is implemented consistently in the different functionaland operational areas.
The Company’s Chief Ethics & Compliance Officer, who reports
to both the General Counsel and the ECSC of the Board of
Directors, leads a dedicated team of Compliance professionals
who are responsible for supporting and advising across theCompany on compliance related topics, supporting the day to
day business, performing risk assessments, drafting policies,
conducting third party due diligence, investigating complianceallegations, implementing tools and controls and delivering
compliance training.

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The ECSC also plays a key role in the oversight and continued
development of the Company’s Ethics & Compliance programme,organisation and framework for the effective governance of
Ethics & Compliance.
In addition to the dedicated Compliance professionals,
the Company is coordinating a network of part-time ethics &compliance representatives (“ECRs”), spanning all Divisions,functions, and regions. The number of ECRs slightly increased in
2021, with a total of 340 ECRs at the end of 2021 (compared to
335 at the end of 2020). Although the ECR network members are
not compliance experts, they play an important role in promoting
the Ethics & Compliance programme and culture and serve as
points of contact for any employee who has questions about the
Ethics & Compliance programme or wishes to raise an Ethics& Compliance concern, including but not limited to bribery or
corruption. The Ethics & Compliance team is animating the ECRs
network, providing continuous training and information of the ECRs.

1. Information on the Company’s Activities /1.2 Non-Financial Information

Likewise, the Personal Data Protection Officer (“DPO”) relies
on a team of data privacy experts to guide, train and advise
the business with respect to data privacy requirements, and a
network of Data Privacy Focal Points in the business functions
and affiliates, to support the Airbus data privacy programme.
In 2021, the DPO and the data privacy team were integrated in
the Legal & Compliance function.

III. Risk Management
The Company is required to comply with numerous laws andregulations in jurisdictions around the world where it conducts
business. This includes countries perceived as presenting an
increased risk of corruption.
Accordingly, since 2017, the Company has been conducting
a thorough bribery and corruption risk assessment across its
two Divisions and different businesses. The results of this risk
assessment are embedded and monitored within the Company’s
ERM framework and highlight, among others, the risk ofimproper payments being made to or via third parties such as
sales intermediaries, lobbyists and special advisors, suppliers,
distributors and joint venture or offset partners. Further corruption
risks include the use of sponsorships, donations, or politicalcontributions to improperly benefit decision-makers, or theprovision of excessive or overly frequent gifts and hospitality by
Airbus employees. In order to ensure its compliance with Export
Control regulations and laws in the EU, US and internationally,
the Company continues to review its Export Control complianceprogramme to ensure it is fit for purpose. Where risks are
identified, they are embedded and monitored in the Company’s
ERM. Identified risks include potential unauthorised access toexport controlled data and hardware by third parties and noncompliance with the International Traffic in Arms Regulations(“ITAR”).
Regarding Data Privacy, the Company undertakes privacy
impact assessments depending on the nature of the personal
data processed or scale of the processing. In addition, risks
relating to the protection of personal data are also assessed in
the context of the ERM and kept updated.
Specific directives have been adopted to address the Company’s
key compliance risk areas. These include among others:–– Requirements for Gifts & Hospitality;–– Requirements for Sponsorships, Donations and Corporate
Memberships;–– Requirements for the Prevention of Corruption in the
Engagement of Sales Intermediaries;–– Requirements for the Prevention of Corruption in the
Engagement of Lobbyists & Special Advisors;–– Requirements for Supplier Compliance Review;–– Requirements for Compliance Block List;–– Requirements for Preventing and Declaring Conflicts ofInterest;–– Requirements for the Prevention of Corruption related toMergers & Acquisitions, Joint Ventures, Partnerships andsimilar Transactions;–– Method for the Prevention of Corruption in the Context ofInternational Cooperation & Offset Activities;–– Requirements for Anti-Money Laundering / Know your
Customer;1–– Guidelines for Competitive Intelligence Gathering Activities–– Requirements for Export Control Sanctions, Embargoes andScreening;–– Requirements for Export Control Framework;–– Requirements for Export Control Escalation and Voluntary
Disclosure;–– Requirements for Export Control Brokering;–– Requirements for Export Control Classification;–– Requirements for Export Control Licences and Agreements;–– Requirements for ITAR Part 130 Reporting;–– Personal Data Protection Directive, Method and Binding
Corporate Rules.
The Ethics & Compliance organisation is charged with oversightand monitoring of these directives to ensure that they are being
implemented effectively. Periodic controls on key processes are
performed and reports provided to the Company’s Executive
Committee and the ECSC, including recommendations tostrengthen the Ethics & Compliance programme where
necessary.
In addition, the Corporate Audit & Forensic Department conducts
periodic, independent audits of the Company’s compliance
processes to assess the effectiveness of internal controls andprocedures and allow the Company to develop action plans forstrengthening such controls.

IV. Implementation/Activities
Awareness and training
All Company employees are required to undergo a minimum
amount of compliance training via e-learning. Additionally,
depending on the function, the country and the level of risk
implied by their role, certain employees are selected to attend
live classroom training as well. Attendance in such cases ismandatory, and managers have a responsibility to ensure that
their team members do so.
From 1 October 2020 to 30 September 2021, the Company’s
employees followed 284,774 Ethics & Compliance e-learning
sessions, including on bribery, corruption and export control.
Furthermore, 5,050 employees attended live classroom training
on different Ethics & Compliance topics in 2021, the majority ofwhich were delivered in virtual classroom settings due to thepandemic.
Likewise the Company also delivered anti-bribery and corruption
training towards higher risk third parties, including sales
intermediaries, lobbyists and special advisors. In 2021, 81%
higher risk third parties were trained on Ethics & Compliancerequirements and expectations.
The Company continued the roll out of the data privacy e-learning
as part of the Ethics & Compliance compulsory training
catalogue. Approximately 9,500 data privacy training sessions
were performed in 2021 (reporting period from 1 October 2020
to 30 September 2021). Since the entry into force of the EU
General Data Protection Regulation in 2018, the Company’s
employees performed approximately 90,000 data privacy
e-learning sessions.

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93

1. Information on the Company’s Activities /1.2 Non-Financial Information“Speak-up” Channel: OpenLine
The Company recognises that the Code of Conduct cannot
address every challenging situation that may arise, andtherefore encourages its employees to speak up throughvarious channels, including through OpenLine (available
at https://‌w ww.‌airbusopenline.com). The OpenLine enables
users to submit an alert securely and confidentially, and also to
ask questions related to Ethics & Compliance.
In 2020, I&D was expressly added to the definition of the“Human Resources” topic. Product safety, previously coveredby a broader “Procurement and Product Security” topic, is now
displayed as a separate category as well.
In addition, the dataprotection@airbus.com mailbox issystematically published in the Company’s data privacy policies
and information notices specific to the various applications, toensure that data subjects can exercise their rights and/or lodge
complaints.
The Company protects those who speak up and raise concerns
appropriately and in good faith. The Company does not retaliate
against anyone who raises a concern, or against those who
assist in investigations of suspected violations.

Policies and procedures
In 2021, the Company continued maintaining its policies andprocedures framework, issuing a guidance on third parties
categorisation, the compliance block list and translating theCode of Conduct in seven additional languages to maximise thereach of this foundational document. All policies and guidelines
are made available to employees on the Intranet, and classroom
training is delivered to employees who are particularly exposedto the underlying risks as described above.
On the Export Control side, the Company created an Export
Control Compliance programme in early 2020 and has launched
the cascade of its Export Control requirements through nine
directives and methods throughout the Company. The cascade
triggers an update of the relevant business processes and istargeted to be completed early 2022.

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Under the terms of the Consent Agreement with the US
Department of State (DoS) made public on 31 January
2020, the DoS agreed to settle all civil violations of the ITAR
outlined in the Company’s voluntary disclosures identified in
the Consent Agreement, and the Company agreed to retain
an independent Special Compliance Officer (SCO), who ismonitoring the effectiveness of the Company’s compliancewith the ITAR for a duration of three years. In 2021, as required
under the Consent Agreement, an audit of the Company’s
ITAR compliance programme was undertaken by externalcounsel. For further information, please refer to “Notes to the
IFRS Consolidated Financial Statements – Note 38: Litigation
and Claims (Investigation by the UK SFO, France’s PNF, US
Departments of State and Justice and Related Commercial
Litigation)”.

Responsible Lobbying Charter
The Company is committed to ensuring that any lobbying activity
is undertaken in compliance with all applicable laws and its anticorruption programme. During 2021, the Company launcheda Responsible Lobbying Charter (link in table above) aimed
at anybody who engages with public officials in any capacity,
including third party representatives retained by the Company.
The charter outlines the Airbus core principles for responsible
lobbying and brings together the key Airbus codes and directives
relevant to this topic. The principles are also reinforced by atraining module available to all employees.

V. Outlook
An effective Ethics & Compliance programme is one that, bydefinition, continuously adapts to changes and improves overtime. Going forward, the Company will continue to assess its
risks and monitor and test the implementation of mitigation
measures at all levels: corporate level, Divisions, regions andlocal entities.
When misconduct reveals a gap in compliance policies,
procedures or tools, the Company undertakes revisions to
its Ethics & Compliance programme commensurate with thewrongdoing and in light of lessons learned. While complianceat the Company will therefore always be a work in progress, theCompany is committed to this endeavour, as it aims to make its
Ethics & Compliance programme sustainable over time.

1. Information on the Company’s Activities /1.2 Non-Financial Information

1

1.2.6 Responsible Supply ChainI.

Introduction

At the end of 2020, approximately 21,000 suppliers from more than 80 countries supply parts, components, systems and services
to the Company.

15%

40,712
M€

Commercial
Aircraft
31,134 M€

Defence and Space
6,275 M€

8%

Helicopters
3,302 M€76%

In 2020, the overall external sourcing volume of the Company
was valued at around € 41 billion and shared between Divisions
with 76% for the Company’s commercial aircraft business, 15%
for the Company’s Defence and Space Division and 8% for theCompany’s Helicopters Division.
Whilst the Company’s products and services are sold all over
the world, the majority of its supply chain is based in Europe andOECD countries. However, in the past few years, the supply chain

has become concentrated and more international. In addition,and due to increasing consolidation within the aerospace anddefence sector, larger work packages are being placed with asmaller number of lead suppliers.
Also, Airbus regionally supports Small and Medium Enterprises
to contribute to its supply chain, particularly through tier one
lead suppliers.

The Company’s global sourcing footprint is represented as follows based on Tier1 and sub tiers, based on 2020 Airbus International
Footprint data (formerly known as value chain analysis, VCA):

in Europein NorthAmerica27%
in NorthAmericain Asia59%
in Europe

74%

19%

<1%
in Africa<1%
in SouthAmerica<1%<1%

in SouthAmerica

6%8%
in AsiaPacific<1%in Middle East<1%in
Africain<1%
Oceaniain Oceania

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1. Information on the Company’s Activities /1.2 Non-Financial Information

To promote further globalisation of its sourcing footprint, theCompany has established regional procurement offices inNorth America (Washington, DC), India (Bangalore), Asia Pacific(Singapore) and China (Beijing). For the regional sourcing of
indirect goods and services, the Airbus General Procurement
Responsible supply chain

function is represented in the regional procurement offices.
As the Company’s commercial aircraft business and its two
Divisions are certified ISO14001, the Procurement function acts
in adherence with ISO 14001 requirements.

GRI

SASB

SDGs

Others102-9 - Supply Chain
204 - Procurement Practices
308 - Supplier Environmental Assessment
408 - Child Labor
409 - Forced or Compulsory Labor
414 - Supplier Social Assessment

Materials
Sourcing

4, 5, 8,9, 12, 13,
16, 17

Vigilance
Plan

Highest governance body(ies)involved

Board of Directors / ECSC

Related Corporate Policies

Responsible Mineral Policy, Environmental Policy, Health and Safety Policy

Certifications

ISO14001

Airbus Commitments to external
standards and frameworks

Reference to certain international organisations standards or principles, in particular ILO have been
included into the Airbus Supplier Code of Conduct

KPIs

TargetTarget year

2020

2021

2021
v. 2020

Percentage of sourcing volume(1)of suppliers invited to CDP who
have responded

75%

2022

56%

68%

+12%

100%

2021

63%

95%

+30%

Percentage of sourcing volume(3)covered by supplier commitment 85%
to the Supplier Code of Conduct(4)

2022

NA

79%

NA

Other key metrics

2020

2021

Percentage of assessed suppliers not meeting Airbus’ sustainability expectations (=red flags)

12%

13%

Percentage of action plans defined for suppliers not meeting Airbus’ sustainability expectations

Not started

15%

Percentage of responding suppliers to the CDP scoring A or B

56%

53%

Number of sustainability alerts

512%Percentage of identified high risk
suppliers(2), who have undergone
a sustainability assessment

Sustainable Supply Chain Roadmap Steering Committee

As Airbus commercial aircraft business and the two Divisions are certified,control and influence of the supply chain is concerned.

(1) Based on 2019 turnover.
Assumptions(2) Based on 2019 risky suppliers (see details further in § Risk Management/1. Supply base risk mapping).
(3) Based on 2020 turnover.
(4) Subsidiaries excluded from the scope.
Supplier Code of Conduct , Environmental Policy Statement , Responsible Mineral Policy statement ,Additional resources

Be an Airbus supplier on Airbus.com
IFBEC , Responsible Minerals initiative , OECD Due Diligence Guidelines for Responsible
business Conduct

II. Governance
The Company strives to make environmental and social
responsibility a core element of its procurement strategy.
This includes managing the relationships with suppliers
throughout the sourcing strategy, supplier selection, contract
management, supplier monitoring and development. The
Company’s suppliers must comply with all applicable laws
and regulations. In addition, all business shall be conducted bysuppliers in compliance with the principles of the Company’s
Supplier Code of Conduct, which is the document of reference
for the Company’s responsible supplier management. This
Supplier Code of Conduct represents the group-wide values

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Airbus / Registration Document 2021

and principles in line with internationally recognised standards
and conventions (such as OECD and ILO).
In 2021, the Sustainable Supply Chain Roadmap (SSCR) steeringcommittee validated the supply chain sustainability ambition: toengage and commit our supply chain around Airbus’ principles
and core values. It translates into four main priorities for a moresustainable supply chain.
–– Lead towards clean aerospace, reflected in the decarboni­sation of our supply chain, as well as transparency on
substances in products and processes.

1. Information on the Company’s Activities /1.2 Non-Financial Information–– Respect human rights and foster inclusion through zerotolerance for forced labour and use of conflict minerals.
–– Build our business on the foundation of safety and quality,
by spreading the culture of product safety to key suppliers
and requiring a safe workplace environment for suppliers’
employees.
–– Exemplify business integrity expressed thanks to zero tolerance
for corruption and screen and approve all our suppliers (see“– 1.2.5 Exemplify Business Integrity”).
Those priorities are consistent with the most material topics
identified in the Airbus supply chain.
Concrete sustainability targets have been included in the 2021
objectives of the Chief Procurement Officer of Airbus commercial
and all direct reports. This includes the deployment of the
Supplier Code of Conduct for 50% of the Company spend, theevaluation of all suppliers identified as having sustainability risks,
and the assessment of the supplier strategy on climate change
for 50% of the Company spend.
The SSCR reports to a steering committee chaired by the Headof Sustainability & Environment, and the Head of Procurement
Transformation & Central Services. The steering committee
includes the representative of the Chief Procurement Officer
of Airbus Commercial and the Chief Procurement Officers of
Airbus Helicopters and of Airbus Defence & Space, as well as
the Head of Health & Safety, the Head of Product Safety and theHead of Ethics & Compliance, or their nominated representatives.
The Executive Vice President Communication and Corporate
Affairs and the Chief Procurement Officer of the Company act
as sponsors of the SSCR. In addition, the Head of Procurement
Transformation & Central Services is part of the procurement
leadership team (PLT) and is responsible for facilitating thecommunication on sustainability activities between the SSCR
and the PLT on a regular basis.
The Chief Procurement Officer of Airbus also reports to the
ECSC on the progress of Airbus responsible sourcing strategy
implementation.
All sustainability activities in the supply chain are based on thefollowing key elements and principles of due diligence following
the OECD Due Diligence Guidance for Responsible BusinessConduct:–– supply base risk mapping;–– supplier engagement and contractual requirements;–– supplier assessment/audits and development plans;–– policies, tools and reporting.
For any anti-corruption topics in the supply chain, theProcurement function cooperates closely with the Legal &Compliance department.

III. Risk Management
The Company’s direct procurement-related risks are embedded
into the Company’s ERM system. A specific risk category
regarding sustainability-related risks in the supply chain has
been integrated into the risk management plan.

1.

1Regulatory non-compliance

The Company may not receive sufficient visibility and informationfrom its supply chain in regards to compliance with environmental,
human rights, health & safety laws and regulations. In the eventof an industrial accident or other serious incident in the supply
chain, or any problems of the supplier to fulfill its operational or
product compliance, this may also have a significant adverse
effect on the reputation of the Company and its products andservices. The Company’s reputation may also be affected by
the public perception of social and/or environmental impacts of
its supply chain’s industrial operations on local environments,
communities, biodiversity and the general public’s health.

2. Supplier’s impact on local environment
From the extraction of raw materials to the manufacturing ofparts delivered to the Company, a supplier’s industrial operations
may have significant adverse environmental impacts on the local
environment where the activity is performed, with possible
impacts on air, water, soil, biodiversity, workers’ occupational
health and safety, on the health of the general public, on the land
rights of the local or indigenous communities and on forced &child labour.

3. Disruption risk
In the event that a supplier fails to comply with environmental,
human/labour rights, health and safety laws and regulations,even if caused by factors beyond its control, that failure may
result in the levying of civil or criminal penalties and fines
against the supplier. Regulatory authorities may require themto conduct investigations and undertake remedial activities,
curtail operations or close installations or facilities temporarily
to prevent imminent risks.
In response to the above 1. to 3., the Company deploys
responsible sourcing activities and specific supplier due diligence
actions in the frame of the SSCR.

4. Risk of product non-compliance
The various products manufactured and sold by suppliersmust, as a minimum, comply with applicable environmental,
human/labour rights, health and safety laws and regulations, forexample those covering substances and product composition.
Even if a supplier seeks to ensure that its products meet thehighest quality standards, increasingly stringent and complex
laws and regulations, new scientific discoveries, delivery ofdefective products or the obligation to notify or provide regulatory
authorities or others with required information (such as under the
REACH regulation) may force it to adapt, redesign, redevelop,
recertify and/or remove its products from the market.
Seizures of defective products may be pronounced and could
prevent delivery to the Company.
In response, a Procurement Task Force has been established toensure group-wide governance for supplier management andassessment of chemical regulations and obsolescence impact.
This task force also coordinates communication to suppliers
on substance issues and on substitution solutions qualified by
the Company.

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1. Information on the Company’s Activities /1.2 Non-Financial Information

IV.	Implementation/Activities: Airbus Supplier Vigilance Plan
1.

Supply base risk mapping

Sustainability Compliance Risks
Since 2018, the Procurement Responsibility & Sustainability
department has carried out proactive social risk mapping inline with international guidance, internal commodity expertiseand externally available country indices. In 2021, with thesupport of external advisors, Airbus upgraded its risk mapping
methodology building on risk indexes considering the locationand the type of activity performed by the suppliers and delivering
an ongoing and up to date risk assessment. This risk mapping
will be incorporated in 2022 into the Company’s supply chain
management tools to provide visibility of those risks to the wholeprocurement organisation.

Number of business-relevant external risk suppliers
identified in 2021 (including tier ones and lower tiers)
Based on the Company’s active supply base and new suppliers
identified as possible future partners, 837 suppliers wereidentified as possible risky suppliers. After business impact andbusiness strategy analysis, 412 suppliers were confirmed as highrisk in 2019. In 2021, analysis was updated in consideration ofbusiness context evolution, leading to 395 business-relevanthigh risk suppliers.

2. Supplier assessment / audit and development
Since 2019, the Company has worked with external expert
companies to conduct sustainability-related, evidence based
desktop assessments and specific on-site audits. The
assessments cover social compliance criteria such as humanrights, labour practices, health & safety and anti-corruption
as well as environmental regulations and sustainability criteria
based on an environmental questionnaire developed by IAEG.
At the end of 2020, 63% of the suppliers identified as high risk
following the Company’s 2019 risk mapping methodology havecompleted an evidence based desktop assessment. In 2021,
the percentage of risky suppliers assessed has increased to
95% compared to a target set at 100%.
The progress and results of those assessments have beencommunicated during events with suppliers and engagement
took place with all suppliers presenting findings.
Of the 95% of suppliers completing an assessment, 13% of which(53) have at least one red flag (mainly linked to environmental
issues). In 2021, the Company has started to engage on the
results asking those suppliers to complete action plans to close
any finding.
During 2021, the Company reviewed the self-assessment
questionnaire and assessment grid to ensure that a) they are fit
for purpose, b) that critical issues are identified and c) there ismore efficient completion. Proposed changes include adapting
the questions, particularly on environmental topics, to take into
account the size of supplier (e.g. feedback has told us that smaller
suppliers don’t necessarily have the resources to complete
such a demanding questionnaire) and to the assessment grid
to identify critical issues, particularly with regard to humanrights and health & safety. In addition, the Company is currently
reviewing its relationship with suppliers who refuse to participate
in its assessment programme.

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Specifically on environmental matters, the Company further
fostered REACH awareness in the supply chain and engaged
with suppliers to accelerate the substitution and manage theuse of the most hazardous substances.
In particular, regarding the REACH EHS readiness of suppliers,
the Company focused on:–– engagement with 238 in situ suppliers through webinars andsupplier conferences to develop their readiness to comply
with enhanced REACH EHS conditions when working on
the Company’s sites. Further direct exchanges with theCompany’s EHS experts has been organised with 42% ofthem;–– evaluation of the maturity of external suppliers in the Company
qualified processes in regards to the future enhanced
protection requirements that are being defined by theEuropean Commission:–– out of 357 suppliers of the Company qualified processes using
chromates in industrial operations, the 96 most impacting
suppliers have been assessed on-site by a third party on
behalf of the Company. The Company engaged with those
suppliers, which revealed findings and requested them todemonstrate and launch action plans for improvement. By
end of 2021, all the suppliers have either a comprehensive
action plan or successfully closed the major findings.
In 2019, the Company introduced supplier factory visits called“the Gemba Walk” pocketbook, applicable to commercial
aircraft activities, which is a practical and visual guide for
the Company’s employees when visiting the shop floor of a
supplier, supporting the identification and reporting of risks
or improvement opportunities observed during factory visits.
A dedicated pocketbook covering environment, health &safety and human rights risks was also developed in 2019 andpublished on the Airbus intranet. Unfortunately, restrictions put
in place since 2020 due to COVID-19 significantly reduced theeffectiveness of identifying risks through supplier shop floor
visits.

3. Supplier engagement
Contractual requirements
The Company’s standard procurement contract templates have
evolved over the last few years to reinforce clauses relating tosustainability and environment which require suppliers to:–– comply with all applicable laws and regulations relating to
production, products and services;–– provide information on substances used in manufacturing
processes and contained in the product itself (covering both
hazardous substances and conflict minerals);–– provide information on environmental, health & safety matterssuch as safe usage and management of products across its
lifecycle (including waste management);–– implement an Environmental Management System based on
ISO 14001 or equivalent;–– comply with the Company’s anti-corruption and bribery
requirements; and–– commit to apply and cascade across its supply chain theprinciples of the Company’s Supplier Code of Conduct,
including with regard to environment, human rights, labour
practices, responsible sourcing of minerals and anticorruption. In addition, since 2020, the Company’s Defence

1. Information on the Company’s Activities /1.2 Non-Financial Informationand Space Division implemented criteria on sustainability inthe call-for-tender procurement process. Only those suppliers
which meet criteria, including in particular agreement tocomply with the Company’s Supplier Code of Conduct,
can continue with the call for tender procurement process.
Positive answers to additional criteria, such as commitment
to the SDGs, sustainable projects, life-cycle assessment,
waste and packaging reduction, will prioritise suppliers forfurther selection. It has been agreed that this approach will
be extended to the whole Company in January 2022.
In 2021, the SSCR steering committee agreed to anchor
sustainability requirements into the Company’s procurement
processes. This will be implemented in 2022 and will include
an obligation to get confirmation from suppliers to apply
and cascade our sustainability principles and environmental
requirements. It also includes the agreement from suppliers toregularly fulfil the evidence-based assessment on sustainability
and for our most important suppliers to be transparent about
their climate change strategy. This will ultimately require
suppliers to cooperate when a sustainability risk is identified,including with deep diving in the supplier’s supply chain, andrequire Airbus to take advantage of supplier visits to evaluate
operational sustainability management.
In 2020, the process to obtain a commitment from theCompany’s suppliers to apply the principles of the Company’s
Supplier Code of Conduct was reviewed. During 2021, 79% of
the Company’s sourcing volume had committed to its principles(based on a target of 50% in 2021 and 80% by 2022).
In 2021, the Annual Supplier Conference for the Company’scommercial aircraft business took place virtually andsustainability was part of the discussions. Three of the Company’s
suppliers were nominated for the Sustainability Award, which
was awarded to Dynamatic Technologies for creating a safe
working environment for employees, suppliers and customers
whilst at the same time helping society by developing low
cost ventilators. For the first time, Airbus Defence and Space
awarded a supplier for outstanding sustainable behaviour during
its supplier conference 2021. Premium AEROTEC GmbH wasawarded for its good transparency with regards to chemical
substance traceability (REACH), for the extensive collaboration
during EHS audits and the immediate implementation of all
improvement recommendations.
However, on top of this annual event, discussions with suppliers
on sustainability continued during various supplier meetings or
virtual supplier conferences for specific commodities.

4. Training & awarenessThroughout 2021, the Procurement Responsibility &Sustainability department supported both internal awarenesssessions and workshops as well as external supplier meetings
on sustainability topics in the supply chain. The Company’s
internal Procurement Academy provides training on corecompetencies and skills to develop procurement expertiseand prepare employees within the Procurement department
for the challenges of the future. Sustainability modules areembedded in Procurement’s newcomer induction path andmanager development programme. This training targets supply
chain quality managers, ordering officers and buyers.

1

Additional means have been developed in 2021:–– A toolkit was developed presenting the sustainable supply
chain roadmap. It is built around three main chapters:–– the first chapter focuses on Airbus’ ambition for sustainability
at the group level, with its four commitments around theenvironment, human rights, health & product safety andbusiness integrity;–– the second one, more specifically, concerns the sustainablesupply chain, its ambitions and priorities. The three-step
approach has also been developed, which consists ofcommitment, assessment and engagement & developmentof suppliers;–– the third chapter focuses on the initiatives detailed earlier
in this report: Airbus Supplier Code of Conduct, Supplier
Sustainability Assessment – notably led by Intertek –,the decarbonisation of the Supply Chain – including CDP
targets –, data transparency in products and processes,
product safety and business integrity.
It gives a clear overview of the actions underway as part of
the roadmap with tangible targets and ambitions.
The purpose of this document is to raise general employee
awareness and provide Procurement teams with thenecessary visibility on related processes with suppliers.
It also provides tangible figures and targets, and a better
understanding of the sustainable supply chain roadmap.
For the external audience (this toolkit has also been madeavailable to suppliers in the Airbus suppliers portals), it aims
to provide greater transparency into the Company’s’ values,
initiatives and the direction it wants to take.
–– An internal website has been created to communicate Airbus’sustainability progress in the supply chain and to give a better
understanding about the initiatives to Procurement teams.
Two trainings will be developed in 2022: one aimed at increasing
employee awareness of supply chain sustainability management,
the other one intended to develop buyers’ awareness ofenvironmental clauses in contracts.

5. Grievance mechanism
From 2019, the Company’s OpenLine has been accessible toexternal stakeholders, such as suppliers and their employees,
as a secure and confidential channel through which they may,on a voluntary basis, raise alerts related to the Company inthe areas of bribery, human rights, environment and healthand safety. This medium is available through the Company’s
OpenLine website (www.airbusopenline.com) in 13 languages.
For further information on OpenLine, see “– 1.2.5 Exemplify
Business Integrity”. Access to this OpenLine has been reiterated
in the updated Supplier Code of Conduct.
In addition to OpenLine, the Company’s sustainable supply
chain roadmap may receive alerts from other sources including
through the supplier onboarding process, media or directly from
employees. During 2021, the sustainable supply chain roadmap
received alerts on 12 potential allegations relating to environment
damages and human rights (forced labour and land rights of
the indigenous communities) in its supply chain. Analysis and/or investigations of those alerts have been completed or are in
progress according to best practice developed by the Legal &Compliance team including:–– initial review to determine if an investigation is needed;–– investigation: prepare investigation plan, collect documentary
evidence, and conduct interviews in a (confidential) and timely
manner;Airbus / Registration Document 2021

99

1. Information on the Company’s Activities /1.2 Non-Financial Information–– assessment: analyse information and documentationcollected during the investigation, prepare an investigation
report summarising the findings and propose remedialactions necessary to reasonably respond to and prevent therecurrence of the conduct, if any;–– closing the investigation and reporting;–– monitoring of the implementation of remedial actions.

6. Work with external stakeholders
As mentioned under “Environment” in section 1.2.2, theCompany is a founding member of IAEG, which is working oncommon aerospace industry standards and tools to manage
environmental obligations. More specifically, for the supply
chain, IAEG has developed:–– a supply chain environmental survey, which the Company
implemented in 2019 and which will be used as environmental
assessment module, as mentioned in section 2 above;–– an EMS implementation guideline to encourage a wider
uptake of EMSs as appropriate for each supplier in a phased
approach and cost effective, consistent and supportive
manner;–– the definition of an Environmental Qualification Program toassess and develop the environmental maturity of suppliers.
Under Airbus leadership, the IAEG extended this qualification
programme to other sustainability topics.
Concretely, the IAEG terms of reference have been reviewed
to allow such an extension, presentation by expert companies
on supply chain risk assessment and management have been
received, benchmark with the IAQG (International Aerospace
Quality Group) has been performed and a request for
information has been launched to build a sectoral approachfor supplier engagement.
In December 2021, the IAEG Board of Directors approved
the creation of a working group to develop an ESG supplierengagement programme.
As a co-founder of the International Forum on Business EthicalConduct (“IFBEC”), the Company is supporting the applicationof global standards for business ethics and compliance. IFBEC
members have established a Model Supplier Code of Conduct,
which expresses the minimum ethical standards to be appliedby suppliers throughout the aerospace and defence industries.
It also encourages suppliers to go beyond legal compliance,
drawing upon internationally recognised standards in order toadvance in social and environmental responsibility and businessethics.
All suppliers will now be asked to sign a confirmation ofcompliance with the principles of the revised Supplier Code of
Conduct (or to confirm their own practices are aligned with theprinciples set out in this Code), and to cascade these principles
throughout their own supply chains. The Company is committed
to support suppliers, where necessary, to improve their own
human rights due diligence.
Since 2019, the Company has been a member of the Responsible
Business Alliance’s Responsible Mineral Initiative (“RMI”), in
order to further enforce activities of responsible sourcing while
applying industry standards for supplier due diligence and data
management in accordance with the OECD framework.

100

Airbus / Registration Document 2021

7.

Promoting disability-friendly companies

Since 2011, in France the Company has been promoting
employment of disabled people by its suppliers. This includes
a request for relevant bidding suppliers to propose a partnershipwith disability-friendly companies during the call for tender
process. In 2020, the Company’s subcontracting activities
have decreased due to the COVID-19 crisis. This decrease also
affected disability-friendly companies, but the Company has
been committed to support them during the crisis. In 2020, theglobal volume of business with disability-friendly companies inFrance was around € 40 million, which represents minus 20%
compared to 2019 figures. However this number has been
multiplied by five for the last ten years and the ambition is toreach around € 100 million in 2025, by developing contracts inengineering and IT services thanks to the Digital Consortium(composed of 65 French disability-friendly companies). At
the end of 2021, around 60 disability-friendly companies areworking with the Company. In November 2021, the Company
organised a (Dis)Ability Forum in Toulouse with 35 disabilityfriendly companies and 150 participants. In 2022, depending on
the sanitary crisis, (Dis)Ability Forums could also be organisedin Spain and Germany.

8. Responsible mineral sourcing
The Company places great importance on the responsible
sourcing of materials used in manufacturing. Some minerals
including 3TG (tin, tungsten, tantalum and gold) are necessary
for the proper functioning of components within its products.
The Company largely does not directly import minerals but
these minerals are found in certain products the Company
procures. In that context, the Company requires all suppliers
to comply with applicable laws and regulations on conflictminerals, including any 3TG conflict minerals. In 2019, theCompany released a Responsible Mineral Policy, which details
its engagement to improve safety and human rights conditionsin the mineral supply chains. As introduced in §6. Work with
External Stakeholders, the company will benefit from the RMI
experience and available audits, tools and standardised ways
of working. The Company is also monitoring developments
at the European Commission on critical raw materials (CRM)
and is investigating the possibilities to take a deeper look at its
related supply chain, through direct involvement and/or tradeassociations. The update of the Supplier Code of Conduct(available since Q1 2021) also requires suppliers to pay more
attention to CRM responsible sourcing. The new Supplier Codeof Conduct formally requires suppliers to establish a policy anda management system to assure that critical raw materials are
sourced responsibly. For the small portion of direct procurementof minerals in the Company’s Defence and Space Division,
the Company has established a dedicated Conflict Mineral
Management System, which describes the necessary activities
needed to monitor potential future legal obligations linked to theupcoming EU regulations on the importation of 3TG. For thissmall portion of direct import, the Defence and Space Division
is proactively asking suppliers to disclose proof of responsible
sourcing and is cross-checking this data with third parties audits
available through the RMI trade association.

1. Information on the Company’s Activities /1.2 Non-Financial Information

9. Plastic-free supply chain

V. Outlook

Based on the SDGs, specifically SDG 12 (responsible
consumption and production), a plastic-free supply chain project
was launched in 2019 within the Company’s Defence and Space
Division, with the aim of reducing, reusing and recycling plastic
waste and packaging in the Division’s scope of involvement by
2025 (for example, production/maintenance, logistics, offices
and supply). As a result of this project, Airbus Defence andSpace defined for the first time a single-use plastic reduction
total cost of ownership of 5% for the production area. Due tothe implementation of plastic-free packaging alternatives, a
14% reduction of single use plastic in the logistics area of all
Airbus Defence and Space sites has been achieved for 2021,
corresponding to 127,991m2 of single-use plastic replacement
based on inventory done. In addition to this great achievement
in logistics, plastic-free alternatives have been tested in theclean rooms of Toulouse-Labege and in the production andmaintenance areas in Manching.

The sustainable supply chain roadmap will evolve to actively
mitigate sustainability risks in the supply chain, adapt to evolving
sustainability requirements and support the Company’s ambition
to be more sustainable.

By the inclusion of the packaging paragraph in the new Supplier
Code of Conduct and by the inclusion of single use plastic clauses
in some contractual requirements, we aim to move progressively
from the current take-make-waste extractive industrial model
to a circular economy approach towards a sustainable way touse plastic.

10. CO2 emissions
During 2021, the Company engaged with its top suppliers
by requesting them to respond to the CDP climate change
questionnaire. 169 of the Company’s top suppliers, covering
80% of the Company’s sourcing volume, were contacted and
121 suppliers have completed the CDP questionnaire (68% in
spent). The results from this questionnaire will allow the Company
to identify supplier strengths and potential areas of improvement
and to engage with non-responsive suppliers in order to improve
the response rate in 2022. Next year the Company plans to get
responses from 75% in spent of the Company’s supply chain.
In 2021, 53% of responding suppliers received an A or B score,
representing 61 suppliers. In 2020, 56% of the responding
suppliers had received an A or B score representing 25
suppliers. The Company plans to request an improvement planfrom suppliers with identified weaknesses and aims to define
cooperation activities with suppliers that have already reachedan A score. In the years to come, the Company will be able toprovide measures and analyses on how the scoring is improving.

1

Actions to be progressed during 2022 include:–– the formalisation and reinforcement of the process to collectsustainability-related alerts, the management of those alerts,
the engagement with external stakeholders, as well as thecommunication and reporting on the effectiveness of ouractions. This action has been launched into consideration
the analysis of the Company’s supply chain due diligence
performed in 2021 and the German act on supply chain due
diligence;–– reinforcing the adherence of the Company’s Supplier Code of
Conduct principles throughout the Company’s supply base;–– extending the scope of supplier sustainability assessmentsby requesting new suppliers to perform such an assessment
and by extending to existing contracts in order to reach 80%of the spend volume in 2025;–– engaging with target suppliers based on supplier assessment
outcome,- and developing action plans when required; –further integrating sustainability elements into procurement
processes;–– developing specific training modules on sustainability andother solutions to support internal awareness in purchasing
commodities. This will include awareness on the Company’s
new Supplier Code of Conduct;–– the deployment of a digital solution to further enhance thecollection of data from suppliers on conflict minerals, criticalmaterials and regulated substances in the products delivered
to the Company.
Regarding environmental sustainability and substancemanagement, the Company will focus on the following in 2022:–– engaging and discussing with key CO 2 contributors in its
supply chain, leveraging the CDP to identify opportunities
to improve their climate change management and reduce
emissions.
Cooperating with equipment suppliers to better assess theenvironmental impact of the Company’s products, improve theCompany’s ecodesign practices and drive supplier innovations
that mitigate their products’ impact over their entire lifecycle.

The Company also evaluated the carbon footprint of its supply
chain, by applying the methodology developed by the IAEG. For
further details, see “– 1.2.2. Lead the Journey Towards Clean
Aerospace”.

Airbus / Registration Document 2021

101

1. Information on the Company’s Activities /1.2 Non-Financial Information

1.2.7 Community Impact
I.

Introduction

Airbus strives to support vulnerable communities and young people throughout the world where it operates and beyond by mobilising
its products, services and employees focusing on equitable and measurable solutions, in line with the Company Purpose.
Community Impact

GRI

SDGs

413 - Local Communities
Highest governance body(ies)involved
Related Corporate Reference
Documents

All 17 SGDs, with focus on 1,2,3,4,5,13 and 17

Board of Directors / ECSC
Airbus Foundation Board of Directors
Directive on Sponsorships, Donations & Coporate Membership, the Bylaws of the Airbus Corporate
Foundation and the Airbus Foundation Endowment Fund
Upcoming: Community Impact framework

Key metrics

2020

2021

0

207

Number of Sustainability
Ambassadors
Add ressources

Community engagement on Airbus.com , The Airbus Foundation , Supporting Education

II. GovernanceIII. Implementation/Activities

The Sustainability – Develop & Engage department manages
the global strategy and framework for community impact at
Airbus and supports the operations of the Airbus Foundation.
A global network of community impact focal points representing
France, Germany, Spain, the UK, the Americas, India, China,
Asia Pacific and the Divisions has been established, as well as
a committee of specific topic experts who provide guidance,
assessment and recommendations according to the community
impact priority themes. Additionally, the Company’s voluntary
network of Sustainability Ambassadors has been launched andthese passionate employees are key for helping raise awarenessof and championing sustainability and community impact
initiatives. Launched in June 2021, this network currently has
over 200 members onboarded, representing 19 sites in Europe,
China, and the US. At a business level, there are standard
reporting lines to the Sustainability & Environment organisation
with top level oversight provided by the ECSC at the Company’s
Board of Director level.

As the world faces this challenging era, it is critical for theCompany and its employees around the world to unite to address
the growing societal challenges and invest in developing thefuture generation.

The Airbus Foundation and Airbus Foundation Endowment
Funds are registered as non-profit entities of general interest
under French law, with specific Articles of Association thatdefine their respective mission and remit. Their strategy andoperations are led by the Managing Director and each entity has
formal governance with its own Board of Directors. The Airbus
Foundation Board of Directors is chaired by Julie Kitcher, EVP
Communication & Corporate Affairs and comprises membershipfrom across the Company including:–– Thierry Baril, Chief HR and Workplace Officer;–– Bruno Even, CEO Airbus Helicopters;–– Michael Schoelhorn, CEO Airbus Defence & Space;–– Amparo Moraleda, Representative of the Company’s Boardof Directors.
Additionally the Board comprises employee representatives andexternal experts.
The Airbus Foundation and Airbus Foundation Endowment
Fund annual reports and accounts are submitted annually to
the French authorities.

102

Airbus / Registration Document 2021

Supporting vulnerable communities
During 2021, focus continued on supporting vulnerable
communities through disaster response, innovation or
fundraising to tackle topics such as poverty, hunger andhealthcare. In the Asia Pacific region, the fight against COVID-19
continued through several cross-divisional initiatives to deliver
medical equipment and supplies to healthcare systems inIndonesia, Malaysia, the Philippines, Thailand and Vietnam.
Wherever possible, the equipment and supplies were sourced
locally and reacted to local needs, with the donations arrangedby the teams based in the region. Airbus India responded to
the COVID-19 crisis by procuring and delivering more than 36
tonnes of medical equipment to the Indian Red Cross Society,including oxygen plants and mobile intensive care units, anddeploying humanitarian flights to transport supplies from abroad.
In the Americas, employees from all Divisions participated ina four-month virtual, inter-site competition. The Airbus End
Hunger Games competition raised funds to benefit non-profit
organisations fighting child hunger and located across the US,
Canada and Latin America. Beneficiary organisations included
Feed the Children, World Central Kitchen, Food Banks Canada,
Nutre a un Niño, Da Rua and TECHO. Along the same theme offighting hunger in vulnerable communities, employees in Seville
donated more than 1,200 kg of basic supplies to the Seville
Food Bank Foundation.
The Airbus Foundation, the Company’s philanthropic arm, also
continued to support its partners in COVID-19 and disaster
response by coordinating humanitarian flights carrying morethan 16 tonnes of aid to the Ivory Coast, Uganda and Nepal.
Additionally, 110 helicopter flight hours were chartered in Chileand Papua New Guinea to support communities impacted
by COVID-19, and in Haiti to conduct aerial assessment
following the earthquake in 2021. The Airbus Foundation also

1. Information on the Company’s Activities /1.2 Non-Financial Information

responded to over 80 satellite imagery requests from partners
representing around 43,000 km2 for disaster assessment andresponse plans. In addition, a bespoke satellite imagery training
session was provided to Action Against Hunger to increase
their capacity in satellite imagery analysis and interpretation.
The Airbus Foundation also participated in the Action Against
Hunger (AAH) global wellbeing challenge Connected Against
Hunger’. During four weeks, over 600 Airbus employees
collectively walked, ran and cycled more than 182,000 kilometresto raise funds to contribute to the work of AAH.

Supporting the future generation
Young people are the lifeblood of our future and of society. It is
crucial that we inspire and engage young people, particularly
by playing an active role in fostering inclusion, diversity andcommunity values at an early age. The Company continued
to offer support through mentorship and education to enable
students to develop the creativity, innovation, leadership and1

critical thinking skills that will serve them well in the future andhelp them to tackle their communities’ challenges.
Specific actions ranged from the provision of 40 scholarships
from Airbus Canada at McGill and Polytechnique Montréal(ten scholarships per year for four years), to online and offline
classes across five cities in China reaching 3,000 students, plus amentorship and funding scheme supporting around 40 university
students in China who were struggling economically.
Bringing science to life in the classroom, the employee-led
initiative, Humanity Lab, developed an educational wind-tunnel
for use in schools in Africa, prioritising low-cost designs withcomponents that could easily be sourced or 3D printed locally.
Since 2018, Humanity Lab projects have been supported bymore than 150 committed employee volunteers to innovate
solutions for disability, environment, education or humanitarian
issues.

The Airbus Foundation has enriched its STEM (Science, Technology, Engineering and Mathematics) digital platform – The Airbus
Foundation Discovery Space (AFDS) – with new educational videos and activities to support its youth programmes across 17 countries
in Europe, Africa, Asia, and the Americas. In 2021, the programmes involved over 400 volunteers and directly reached around
4,700 young students. The fourth edition of the AFDS Moon Camp Challenge built on the success of previous years with 1,823 projects
submitted from 53 countries by over 4,100 students and supported by over 600 teachers.
Airbus Foundation Youth Development Programmes

Americas- Mirabel, CANADA- Wichita, KS, USA- Mobile, AL, USA- Mexico city, MEXICO- Itajuba, BRAZIL

Europe:- Stevenage, UK- Filton, UK- Broughton, UK- Ottobrun, GERMANY- Hamburg, GERMANY- Manching, GERMANY- Friedrichschafen, GERMANY- Donauworth, GERMANY- Elancourt, FRANCE- Toulouse, FRANCE- Marseille, FRANCE- SPAIN (national programme)

Africa:-KENYA-BOTSWANA-MALAWI-NIGERIA-SOUTH AFRICA

Asia:- KOREA- CHINA- PHILIPPINES- PAKISTAN

Airbus / Registration Document 2021

103

1. Information on the Company’s Activities /1.2 Non-Financial Information

Protecting the future of our planet

IV. Outlook

2021 saw a multitude of employee-led initiatives aimed at
positive environmental action. Employees from several countries
including China, Spain, Germany, France and the UK volunteered
in projects organised in partnership with local infrastructureorganisations to support activities such as local waste cleanup
and tree planting.

In order to strengthen the Company’s collective approach tocommunity impact, a new global framework is in development
to be launched early 2022. Aiming to bring together thevarious business and philanthropic channels for community
impact under a common direction, the framework will focus onsustainable, equitable and measurable initiatives focused on
three pillars: advancing the support to vulnerable communities,
the development of the future generation and protecting thefuture of our planet.

In addition to its long running humanitarian response and youth
development actions, in 2021 the Airbus Foundation launched
the development of a third pillar focusing on nature preservationand minimising the environmental impact of humans. As partof its pilot phase, the Airbus Foundation joined forces with theConnected Conservation Foundation in a new partnership thataims to help preserve wildlife and natural ecosystems throughshared technologies and resources. Under the agreement,
Airbus’ high-resolution satellite imagery is being provided andteams are working together with the Connected Conservation
Foundation’s on-the-ground digital technologies to help recover
populations of threatened species and stop habitat degradation.
The partnership’s first project is focusing on novel approaches,using artificial intelligence to search high-resolution imagery pixelby pixel to detect large animals in Madikwe, South Africa and in
Northern Rangelands Trust conservancies in northern Kenya.

As part of the development of the community impact framework,
23 pilot projects have been selected from across 19 countries
with a focus on contribution to the priority themes, ensuringcommunity involvement in the identification of needs andsolutions, and embedding impact requirements to ensure thatthe projects achieve positive, lasting impact for beneficiaries andcommunities. The outcomes of these projects will contribute to
the definition of our impact measurement in 2022.
In addition, to support the framework and encourage employee
engagement, Airbus, in cooperation with the Airbus Foundation,
will deploy a new digital platform in early 2022 that facilitatesa direct connection with almost two million community causes
around the world.

1.2.8 ESG Data Board
ENVIRONMENTAL PERFORMANCE
GRI

KPI

Unit

2021

2020

2019

Total energy consumption (excl. electricity generated by CHP
on site for own use)

GWh

3,774

3,815

4,638

Energy intensity (per Total Revenues)
Energy consumption from stationary sources

Energy

EN3

71.4

75.8

64.5

GWh

2,728

2,665

2,989
1,349

of which gas

GWh

1,266

1,234

of which heat and steam *

GWh

158

123

135

of which electricity *

GWh

1,259

1,269

1,460

Percentage electricity purchased from grid

GWh

99.9%

99.9%

99.99%

Total renewable electricity consumption

GWh

405

254

143

of which purchased electricity from renewable sources REC

GWh

404

253

142

of which produced electricity from renewable sources

GWh

1

1

0

%

32%

20%

10%

GWh

1,046

1,150

1,649

of which road & maritime Diesel used in Oversize Surface
Transportation

GWh

335

405

540
1,072

Percentage renewable electricity
Energy consumption from mobile sourcesof which Kerosene

GWh

682

716

used in Beluga Transport

GWh

384

426

651

used in Flight Test

GWh

298

290

421

of which Sustainable Aviation Fuel

GWh

4

1

: 2021 data audited by EY®.

104

GWh/bEUR

Airbus / Registration Document 2021

1. Information on the Company’s Activities /1.2 Non-Financial Information

Unit

2021

2020

2019

Total Scope 1 + Scope 2 CO2 emissions

ktons CO2e

827

882

1,114

Total direct CO2 emissions (Scope 1)(1)
EN16
Scope 1&2 Total indirect CO2 emissions (Scope 2)(2)ktons CO2e

562

587

747

ktons CO2e

265

295

367

gCO2e/EUR

15.6

17.5

15.5

Indirect CO2 emissions Business Travel (3)ktons CO2e

17

22

109

Indirect CO2 emissions Use of Sold Products – Comm. aircraft,base scenario(4)ktons CO2e463,592

440,361

731,203of which indirect emissions from the production of fuelktons CO2e82,69078,546130,423GRI

KPI

GHG intensity (per Total Revenues)
Indirect CO2 emissions Oversize TransportationAiremissions

EN17
Scope 3(1)

gCO2 /pax.km

62.6

63.1

66.2

Indirect CO2 emissions Use of Sold Products – Comm. aircraft,
ATAG SAF uptake

CO2 per passenger/km for delivered products

ktons CO2e384,781374,307731,204

Indirect CO2 emissions Use of Sold Products – Comm. aircraft,
Full potential

ktons CO2e278,155

264,217438,722

Indirect CO2 emissions Use of Sold Products – Civil helicoptersktons CO2e

1,137

1,085

NA

of which indirect emissions from the production of fuelktons CO2e

203

193

NA

Indirect CO2 emissions Purchased Goods and Services

ktons CO2eNA11,346NA

CDP Rating (based on previous year disclosure)
EN20
EN21

Water

EN8

EN22

Waste

EMS
certification

EN23

1

Score

A-

A-

B

Internal Carbon Pricing

EUR/ton

150

30

30

Total VOC emissions(5)

tons

1,051

1,047

1,462

Total SOx emissions

tons

14

14

15

Total NOx emissions

tons

222

239

282

Total water withdrawal (note: formerly reported as “consumption”)

m3

3,078,590

3,371,030

4,149,241of which percentage purchased

%

84%

85%

88%

of which percentage from surface water sources and collected
rainwater

%

6%

5%

5%

of which percentage from ground water sources

%

10%

10%

7%

of which percentage from all areas with high water stress(6)

%

36%

37%

38%

Total water discharge

m3

2,870,748

3,099,946

3,757,358

Total waste production, excluding exceptional waste

tons

69,66074,89899,042

%

27%

29%

27%

Material recovery rate

%

55%

51%

54%

Energy recovery rate

%

21%

21%

21%

Percentage of operations with ISO 14001 / EMAS certification(in % workforce)

%

88%

88%

87%

Percentage of operations covered by reporting (in % workforce)(9)

%

92%

92%

92%

of which percentage hazardous waste(7)(8)

Scope: Reported data covers 84 sites. Airbus environmental reporting guidelines include sites worldwide with a workforce on-site higher or equal to 100 employees. Note that only 100%
consolidated entities are taken into account with the exception of ATR and Tianjin operations. 2015-2020 figures were refined to reflect the above changes in scope, to align with GHG protocol
guidelines (past year adjustments) and to rectify actuals for some entities.
: 2021 data audited by EY®.
* Energy: Electricity, Heat and Steam joint verification.
(1) Scope 1 emissions restated to include Oversize transport emissions (large and non-standard shipments via Road, River and Sea), previously considered as Scope 3 based on operational
control criteria as per GHG protocol guidelines.
(2) Scope 2: location based with purchased guarantees of origin deduced.
(3) Worldwide air travels of Europe-based employees.
(4) Previous years restated to take into account refined emission factors.
(5) 2021 VOC emissions data is estimated. 2021 actuals will be consolidated in April 2022.
(6) Proportion of total water withdrawal corresponding to the withdrawals from areas identified with high or extremely high water stress. Water stress level as defined per the Aqueduct Water
Risk Atlas (medium scenario for 2030).
(7) Hazardous waste: waste displays one or more of the hazardous properties listed: “Explosive”; “Oxidising”; “Highly flammable”; “Flammable”; “Irritant”; “Harmful”; “Toxic”; “Carcinogenic”;“Corrosive”; “Infectious”; “Toxic for reproduction”; “Mutagenic”; “Sensitizing”; “Ecotoxic”, “Pressurised gas”.
(8) Material recovery: any operation wherein products, components of products, or materials that have become waste are prepared to fulfill a purpose in place of new products, components,
or materials that would otherwise have been used for that purpose. 2021 material and energy recovery rates will be refined when final waste treatment information will be provided by waste
collector companies.
(9) Newly reported metric. Previous coverage ratio excluded entities not subject to the environmental reporting guidelines (see above).

Airbus / Registration Document 2021

105

1. Information on the Company’s Activities /1.2 Non-Financial Information

Social Performance
WORKFORCE

Total number of employees

2021.

2020.

2019.

126,495

131,349

134,931

By business segment
Airbus(1)73,56078,48780,985

Airbus Helicopters

20,12620,02620,024

Airbus Defence and Space

32,80932,83633,922

4.34

4.36

4.43

122,950

128,151

130,591

3,156

3,198

4,340

% Part time employees
By contract type
Unlimited
Limited contract > 3 months
By geographic area.

France45,931

48,23149,143Germany

42,97245,56845,638Spain

11,881

11,828

12,637

UK

9,368

9,846

11,109

US

3,150

2,980

3,151

Canada

3,788

3,634

3,668

China

698

613

653

8,707

8,649

8,932

Other countries% of active workforce employees located in Europe

89.1%.

By nationality (in %)(2)
French35.4

German31.5

Spanish10.3

British7.7

From 133 other countries

15.1

Total number of nationalities

138

By age<30 years old

11,12012,135

13,86230-50 years old

79,98581,70982,552>50 years old

35,39037,50538,517

5,655

5,463

11,270

2,817

2,413

6,643

Newcomers
Core Division
Subsidiaries

2,838

3,050

4,627

9,394

7,796

5,842

Core Division

5,632

4,675

2,902

Subsidiaries

3,762

3,121

2,940

Core Division

5.9%

4.6%

2.9%

Subsidiaries

12.2%

9.4%

8.4%

7.4%

5.8%

4.3%

Leavers (incl. partial retirement)

Attrition Rate

Total
: 2021 data audited by EY®.
(1) Airbus includes population of Airbus former HQ since 1 January 2018.t(2) No disclosure of data in 2019 and 2020.

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1

GENDER DIVERSITY
2021

2020

19%

18%.

Board of Directors

25%

25%.

Executive Committee

25%

16%.

Executives

14%

13%.

% Women in total active workforce
Per category

Senior Managers

16%

14%.

Newcomer

22%

26%.

21.2%

20.5%

By geographic area
FranceGermany

16.4%

15.3%

Spain

22.7%

22.3%

UK

12.9%

13.5%

US

22.4%

22.4%

Other countries

21.0%

20.9%

: 2021 data audited by EY .
®

PEOPLE DEVELOPMENT
2021

2020

Number of classroom training

78,98478,443

Number of digital training

967,495

752,702

1.2mn

1 million

10.8

10.6

Total training hours
Average training hours per employee
for women

98

for men1110

for production employees

15

14

for non-production employees

108>10,400>7,000

2021

2020

12

8

Internal mobilities: 2021 data audited by EY®.

LABOUR RELATIONS

Number of meetings with SE-WC% workforce covered by collective bargaining agreements~ 80%

Note: figures are based on the active workforce, i.e. the number of permanent and short-term employees, irrespective of their individual working times, and having worked in the last
30 days. The headcount is calculated according to the consolidation quota of the respective companies. The scope for HR structure reporting covers 100% of the Company’s
total active workforce from consolidated companies. Workforce and breakdowns metrics are figures at year-end. Other metrics cover civil year periods, except for training related
metrics with reporting periods going from 1 October to 30 September.
: 2021 data audited by EY®.

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HEALTH & SAFETY

Lost Time Injury Frequency Rate
LTI FR – Commercial Aircraft

2021

2020

2019

3.21

3.81

5.58

4.31

5.12

Near-miss – Commercial Aircraft

19,305

H&S training hours delivered

128,795

103,070

148,000

Nb of empl. who received H&S training

28,14437,59920,900

Number of empl. having attended “EH&SCertificate” modules 1&2

1,309

418

Core entities with ISO 45001 or similar certification% of the company-wide workforce covered~one third
25%: Data audited by EY®.

CYBERSECURITY
2021
Number of data breaches reported to data authorities

1

2020
1

Percentage involving confidential information

100%

100%

Cyber security awareness training e-learning participation

67,475

10,328

290

216.5

2021

2020

2019

0.03 (Gen4)

0.04(Gen4)

0.05(Gen4)% SMS officers nominated

100%

100%

N/A

% SMS officers trained

100%

92%

N/A

2021

2020

207

0

2021

2020

% of investigations completed or in progress – following reports of concerns linked to human rights,
including forced and child labour and other labour rights.

100%

100%

% of sites having undertaken a social assessment – % of the Company’s with over 100 employees,
cumulative since 2020, undergoing a social assessment including human and labour rights.

14%% of findings closed within 18-months (following social assessments including human and labour rights,
carried out on the Company’s sites)

100%

Number of participants to human rights trainings (Cumulative number of participants who have completed
e-learning modules on human rights and modern slavery; reporting period: 1 Oct - 30 Sep)

5,789

Number of alerts of human rights concerns (including forced labour and labour rights(received via OpenLine and other means) from internal sources or through the Company’s supply chain)

4

Corporate & IM Cyber Security Headcount

PRODUCT SAFETY

Fatal accident rate Industry wide

: Data audited by EY®.

COMMUNITY IMPACT

Number of Sustainability Ambassadors

HUMAN RIGHTS: Data audited by EY®.

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6%
100%
4,943
5

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1

BUSINESS INTEGRITY

Number of employees per appointed Ethics & Compliance Representatives% of employees (non-Exec) who have completed the E&C training objective

2021

2020

372

390

90%

80%

284,774

309,682

9,547

35,073

2021

2020

2019

Sourcing volume (in € million)NA

40,71253,400

Number of suppliersNA

21,00023,000

NA

76%

84%

Number of E&C e-learning sessions delivered to employees
Number of data privacy e-learning sessions delivered to employees (note: in 2021 the reporting
period was changed, from calendar years to Oct.-Sept. periods, and led to restate past year
figures accordingly) *: Data audited by EY®.
* 2021 data audited.

SUPPLY CHAIN

Split by division (in %)AirbusHelicopters

NA

8%

6%

Defence and Space

NA

15%

10%

EU

NA

59%

59%

North America

NA

27%

27%

Asia pacific

NA

8%

8%

Split by region

Other regions

NA

6%

6%

Number of countries

NA

88

>100

Percentage of sourcing volume covered by supplier commitment to the Supplier
Code of Conduct

79%

NA

-

Percentage of sourcing volume of suppliers invited to CDP who have responded

68%

56%

-

Percentage of responding suppliers to the CDP scoring A or B

53%

56%

-

Percentage of identified high risk suppliers, who have undergone
a sustainability assessment

95%

63%

-

Percentage of assessed suppliers not meeting Airbus’ sustainability expectations

13%

12%

-

Percentage of action plans defined for suppliers not meeting Airbus’sustainability expectations

15%

NA

-

5

-

Number of sustainability alerts

12Note: Metrics cover civil year periods, except for training related metrics with reporting periods going from 1 October to 30 September.
: Data audited by EY®.

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Governance
BOARD OF DIRECTORS

Number of independent directors

2021

2020

2019

11

11

11

Number of women

3

3

3

Average age

60

59

59

7

7

7

4.5

3.5

4

Number of nationalities
Average tenure
Number of Board meetings

7

13

11

98%

97%

91%

Number of Audit Committee

5

5

7

Number of RNGC

5

4

7

Number of ECC/ECSC

6

4

6

2021

2020

2019

Number of women

3

2

2

Number of Executive Committees

4

4

4

2021

2020

2019

% average attendance

EXECUTIVE COMMITTEESHAREHOLDINGFree Float

74.06%

73.97%

73.94%GZBV (German State)

10.90%

10.93%

10.94%SEPI (Spanish State)
SOGEPA (French State)

4.11%

4.12%

4.13%

10.92%

10.95%

10.96%2021

2020

SUSTAINABILITY-LINKED REMUNERATION

CEO and Executives variable remuneration – common collective component, paid following the end of financial year
LTIFR1

LTIFR1

10%

20%

R&S KPI 2

CO2-

Weight10%-

R&S KPI 1
Weight110

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1

1.2.9 Deployment of Vigilance Plan (Devoir de Vigilance)
The Company’s Vigilance Plan is embedded in its comprehensive
approach to sustainability. This section gathers key information
highlighting the Vigilance Plan’s deployment status and provides
further granularity to the “materiality matrix” risk assessment,on the topics of environment, health and safety, human rights

and fundamental freedoms. While this section provides an
overview of performance measurement and analysis as well as
controls and processes, further descriptive elements including
implementation progress can be found in the respective material
topic sections.

1. Risk mapping
Priority risk in the scope of
the Company and its subsidiaries

Priority risk in the scope ofSuppliers and Contractors

Environment
Climate change(1)✔

✔

Substance management✔

✔

Working environment✔

✔

Substances and materials✔

✔

Health and Safety

Machinery & equipment✔

Physical agents✔

Psychological, related to COVID-19✔

In situ contractors✔

Human Rights & Fundamental Freedoms
Impact of products and services on the irght to life and liberty✔

Data privacy✔

✔

Forced and child labour and other labour rights✔

✔

Diverse and inclusive worlplace✔

✔

The transition to decarbonisation✔

(1) CO2 largest impact from Scope 3 – Use of Sold Product. For further information, see “– 1.2.2 Lead the Journey towards Clean Aerospace”.

Methodology and stakeholders involvement: The Vigilance plan approach is aligned with the materiality matrix methodology
detailed in “– 1.2.1 The Company’s Approach to Sustainability” and any relevant additional topic specific information can be foundin the respective material topic sections.

2. Procedures for regularly assessing the situation of relevant subsidiaries,
subcontractors and suppliers
The table below summarises effective procedures for regularly assessing the situation of relevant subsidiaries, subcontractors
and suppliers. Specific relevant complementary information can be found in the respective material topic sections.
The Companny and its subsidiaries
Self
assessment

Internal
assessment/ audit

Environment✔

Health and Safety✔

Human Rights &Fundamental Freedoms

Suppliers and Contractors

External
audits (ISO…)Management
systemSelf
assessment

Company
Audit

Ad hoc 3rd
party audits✔

✔ ISO 14001

✔

✔

✔

✔ Intertek✔

✔ ISO 45001(1)

✔

✔

✔

✔ Intertek

✔

✔

✔

✔

(1) 25% workforce currently covered

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3. Prevention and mitigation actions
The table below summarises transversal mitigation / preventive actions. Specific relevant complementary actions are detailed in
the respective material topic sections.
The Company and its subsidiaries

Suppliers and Contractors

Code of
Conduct

Policies /Directives

Contractual
terms andconditions

Whistleblowing
systemSupplier
Code of
Conduct

Training

Whistleblowing
systemEnvironment

✔

✔

✔

✔

✔

✔

✔

Health and Safety

✔

✔

✔

✔

✔

✔

✔

Human Rights &Fundamental Freedoms

✔

✔

✔

✔

✔

✔

✔

4. Alert mechanism
The Company’s OpenLine mechanism is introduced in “– 1.2.1 The Company’s Approach to Sustainability” and described in moredetail in “– 1.2.5 Exemplify Business Integrity”.

5. Monitoring system
The table below shows an overview of the monitoring system in place. More detailed descriptions as well as performance measuresand analysis can be found in the respective material topic sections.
KPIs

Responsibleorganisation body

CO2 Scope 1, 2, Water, Waste

Industrial roadmap

CO2 Scope 3

Aviation roadmap

Health and Safety

Lost time injury frequency rate

Executive level review

Human Rights &Fundamental Freedoms

Nb of social assessments

Environment
Operations
Use of Products

Supply Chain

Supervisory
Committee Controls
Internal audit

ECSC

ERM, internal audit

Human Rights Roadmap

Site social assessments andsupply chain assessments% suppliers at risk

Sustainable Supply

Audits%action plan lauched

Chain Roadmap

Self questionnaires% of findings closed within 18 months

1.2.10 EU Taxonomy Disclosure
The EU Taxonomy is a classification system establishing a listof environmentally sustainable economic activities by defining
technical screening criteria for the six environmental objectives
defined by the EU Taxonomy, as well as disclosure requirements
for corporations. It aims to direct investments towards sustainableprojects and activities in order to meet the EU’s climate andenergy targets for 2030 and reach the objectives of the European
green deal.
Recommendations for technical screening criteria were publishedin August 2021 (Annex to the draft report by the Platform on
Sustainable Finance on preliminary recommendations fortechnical screening criteria for the EU taxonomy). Based on thisreport, the proposed inclusion of aviation in the EU Taxonomy
acknowledges its potential to transition to low carbon activities,
through a number of measures including a “best-in-class”
approach: in the short-term, aging fleet renewal by Airbus’ latest
generation aircraft is recognised as having a significant potential
for CO2 reductions. The Company roadmap to decarbonisationis aligned with the taxonomy approach, as explained below.

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Estimated eligibility and alignment if aviation-related
technical screening criteria were to be adopted as per draft
recommendation:
Aviation-related criteria are expected to be included in theTaxonomy in 2022. According to the published recommendations
for technical screening criteria, a majority of the Company’s
2021 turnover would be eligible, mainly including the turnover
generated by sales of commercial aircraft. Based on the same
information, the Company estimates that a significant portion ofthis eligible turnover could be taxonomy aligned, while meeting“do-not-significant-harm” criteria and minimum safeguards.
As per criteria recommendations, the alignment factor would
correspond to the proportion of new aircraft sold that will replaceless efficient older generation aircraft, and therefore contributing
to reducing the overall carbon footprint of aviation. Activities fromthe Company’s two Divisions may be covered to some extent
in future developments of the Taxonomy, while current level of
information available does not enable the Company to provide anestimate. Accordingly, “best-in-class” aircraft programme related
capital expenditures, and R&D (operating expenses) should be
respectively eligible and aligned in similar proportions.

1. Information on the Company’s Activities /1.2 Non-Financial Information

Under the proposed text available at the time of this report,
Airbus commercial aircraft activity corresponding to NACE code
30.3 is described under section 8.9 Manufacturing of aircraftof the document “PLATFORM ON SUSTAINABLE FINANCE:TECHNICAL WORKING GROUP / PART B – Annex: Full listof Technical Screening Criteria August 2021” and therefore it
could be considered an eligible activity once the corresponding
delegated act is adopted.
Reported eligibility as per December 2021 adopted
Delegated Act:The Delegated Act covering Manufacturing of Commercial
Aircraft technical screening criteria is expected to be adopted
by the European Commission in 2022.
The Company performed an analysis of its exposure to
Taxonomy-eligible activities referenced in the Climate Delegated
Act adopted before 31 December 2021(1): Data-driven solutions

1

for GHG emissions reductions, Renovation of existing buildings
Construction of new buildings, Electricity generation using solar
photovoltaic technology, Installation, maintenance and repair ofrenewable energy technologies, Freight transport services byroad. The proportions of its turnover, capital expenditures andoperating expenses as of 31 December 2021, as reported in the
Financial Statements were assessed as immaterial with currently
available data, which includes certain limitations mainly linked todata granularity for capital expenditures and operating expenses.
The Company is working on improving financial data tagging toenable more accurate reporting in upcoming disclosures.
As a result of this assessment, as of 31 December 2021, theCompany reports 0% eligibility (100% non-eligibility) of its total
turnover (€ 52,149 million), capital expenditures (€ 1,928 million),and operating expenses (R&D € 2,746 milllion) respectively.

1.2.11 TCFD Correspondence Table
See Airbus Sustainability
Report sections

See CDP Climate Change
Questionnaire* items– 1.2.1 the Company
Approach to Sustainability– 1.2.2 Lead the Journey
towards Clean Aerospace

C1.1a, C1.1b

Governance
Describe the Board’s oversight of climate-related risks and opportunities.
Describe management’s role in assessing and managing climate-relatedrisks and opportunities

C1.2, C1.2a

Strategy
Describe the climate-related risks and opportunities the organisation
has identified over the short, medium, and long-term
Describe the impact of climate-related risks and opportunities on
the organisation’s businesses, strategy, and financial planning.
Describe the resilience of the organisation’s strategy, taking into
consideration different climate-related scenarios, including a 2°C
or lower scenario– Risk Factors – 4
Environment, Human Rights,
Health & Safety Risks– 1.2.2 Lead the Journey
towards Clean Aerospace–Please refer to the “Notes
to the IFRS Consolidated
Financial Statements”(Note 6: Climate impacts)

C2.3a, C2.4a
C2.3a, C2.4a, C3.1, C3.3,
C3.4

C3.2, C3.2a

Risk management
Describe the organisation’s processes for identifying and assessing
climate-related risks.
Describe the organisation’s processes for managing climate-related risks.
Describe how processes for identifying, assessing, and managing climaterelated risks are integrated into the organisation’s overall risk management.

–4.1.3 Enterprise Risk
Management System–1.2.1 the Company
Approach to Sustainability–1.2.2 Lead the Journey
towards Clean Aerospace

C2.1, C2.1a, C2.1b, C2.2,
C2.2a
C2.1, C2.2
C2.1, C2; 1b, C2.2

Metrics & targets
Disclosure of the metrics used by the organisation to assess climate-relatedrisks and opportunities in line with its strategy and risk management process.
Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas(GHG) emissions, and the related risks.
Describe the targets used by the organisation to manage climate-relatedrisks and opportunities and performance against targets.
* CDP Climate Change Questionnaire is available on Airbus website–1.2.2 Lead the Journey
towards Clean Aerospace–1.2.8 ESG Data Board,
section Environmental
Performance / Emissions

C4.2, C9.1
C6.1, C6.2, C6.3, C6.5,
C6.10, C7.1, C7.1a, C7.2,
C7.3, C7.3a, C7.5, C7.6,
C7.6a
C4.1, C4.1a, C4.1b, C4.2aand CDP website .

(1) COMMISSION DELEGATED REGULATION (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council
by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climatechange mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental
objectives, published in the Official Journal of the European Union on 9 December 2021.

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1.2.12 GRI Index
This table, whose aspects are material for Airbus and its stakeholders, follows the GRI Standards Guidelines, in accordance with the“core” option. When links target a Non-Financial Information section, additional resource links can be found in the table displayedin the sub-section I.Introduction.
GRI

Disclosure

Related content

GRI 102: General Disclosures
Organisational Profile
102-1

Name of the organisation

Airbus SE
Get to know Airbus

102-2

Activities, brands, products, and services

102-3

Location of headquarters

Leiden, the Netherlands

102-4

Location of operations

Global presence on Airbus.com, Airbus Helicopters’ global
presence

102-5

Ownership and legal form

See section 3.1

102-6

Markets served

See sections 1.1.1 to 1.1.4 (page 23-53)

Airbus’ markets on Airbus.com
See sections 1.1.1 to 1.1.4 (page 23-53)
See 1.2.4.d Our People, 1.2.8 ESG Data Board(Social Performance)

102-7

Scale of the organisation

102-8

Information on employees and other workers

See 1.2.4.d Our People, 1.2.8 ESG Data Board(Social Performance)

102-9

Supply chain

See 1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board(Social Performance)

102-10Significant changes to the organisationand its supply chain

Please refer to “Notes to the IFRS Consolidated Financial
Statements – Note 8: Acquisitions and Disposals”,
see 1.2.6 Responsible Supply Chain

102-11

Precautionary Principle Approach

Please refer to “Notes to the IFRS Consolidated Financial
Statements – Note 1: The Company” and “– Note 11: Segment
Information”.

Entreprise Risk Management on airbus.com
See 4.1.3 (ERM), 1.2.9 Vigilance Plan (Devoir de Vigilance)

102-12External initiatives

UN Global Compact, See other initiatives per sustainability
topics in the respective subsection of 1.2 Non-Financial
Information

102-13

Membership of associations

ATAG, IAEG, The Conference Board, GIFAS, World Economic
Forum, Advanced Robotics for Manufacturing, Initiative
ChefsacheStatement from senior decision-makerSee Guillaume Faury’s statement about Airbus engagement
for sustainability on airbus.com, see CEO statement on
airbus.com , see CEO’s commitment to sustainability
in the UNGC engagement letter 2022

Strategy102-14

Ethics and Integrity
102-16

Values, principles, standards, and norms of behavior

See 1.2.5 Exemplify Business Integrity

Governance102-18Governance structure

See 4.1 Management and Control
Airbus’ Corporate Governance on airbus.com

Stakeholder Engagement102-40102-41114

List of stakeholder groups

See 1.2.1 The Company’s Approach to Sustainability

Collective bargaining agreements

See 1.2.4.c Labour Relations, 1.2.8 ESG Data Board(Social Performance)

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1. Information on the Company’s Activities /1.2 Non-Financial Information

GRI

Disclosure102-42

Identifying and selecting stakeholders

102-43

Approach to stakeholder engagement102-44

Key topics and concerns raised

1

Related content
See 1.2.1 The Company’s Approach to Sustainability

Reporting Practice102-45

Entities included in the Consolidated Financial
Statements

102-46

Defining report content and topic Boundaries

102-47

List of material topics

Please refer to “Notes to the IFRS Consolidated Financial
Statements – Note 7: Scope of Consolidation”
See 1.2.1 The Company’s Approach to Sustainability
See data per sustainability topics in the respective subsectionof 1.2 Non-Financial Information and in section 1.2.8 ESG
Data Board

102-48

Restatements of information

Please refer to “Notes to the IFRS Consolidated Financial
Statements – Note 4: Key Estimates and Judgements,
Note 24: Provisions, Contigent Assets and Contingent
Liabilities, Note 37.7 Financial Instruments”

102-49Changes in reportingSee 1.2.1 The Company’s Approach to Sustainability

102-50

Reporting period

from 1 January to 31 December

102-51

Date of most recent report

March 2022

102-52

Reporting cycle

Annual102-53

Contact point for questions regarding the report

Check on cr_sustainability@airbus.com

102-54Claims of reporting in accordance with the GRI
Standards

This report has been prepared in accordance with the GRI
Standards: Core option.

102-56External assurance

Find the full Independent Assurance Report from Ernst&Young

Lead the Journey Towards Clean Aerospace
Environment
103-1

Explanation of the material topic and its Boundary

103-2

The management approach and its components

103-3

Evaluation of the management approach

See 1.2.1 The Company’s Approach to Sustainability,
1.2.2 Lead the Journey Towards Clean Aerospace

Energy302-1

Energy consumption within the Organisation

302-4

Reduction of energy consumption

302-5

Reduction in energy requirements of products
and services

See 1.2.2 Lead the Journey Towards Clean Aerospace,
1.2.8 ESG Data Board (Environmental performance) Board(Environmental performance)

Water
303-4

Water discharge

303-5

Water consumption

See 1.2.2 Lead the Journey Towards Clean Aerospace,
1.2.8 ESG Data Board (Environmental performance)

Emissions305-1

Direct (Scope 1) GHG emissions

305-2

Energy indirect (Scope 2) GHG emissions

305-3

Other indirect (Scope 3) GHG emissions

305-4

GHG emissions intensity

305-5

Reduction of GHG emissions

305-6

Nitrogen oxides (NOx), sulphur oxides (SOx),
and other significant air emissions

305-7

Energy indirect (Scope 2) GHG emissions

See 1.2.2 Lead the Journey Towards Clean Aerospace, 1.2.8
ESG Data Board (Environmental performance)

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GRI

Disclosure

Related content

Waste by type and disposal method

See 1.2.2 Lead the Journey Towards Clean Aerospace,
1.2.8 ESG Data Board (Environmental performance)

Waste
306-2

Build our Business on the Foundation of Safety and Quality
Aviation and Product Safety
103-1

Explanation of the material topic and its Boundary

103-2

The management approach and its components

103-3

Evaluation of the management approach

416-1

Assessment of the health and safety impacts ofproduct and service categories

417-1

Marketing and labelingSee 1.2.1 The Company’s Approach to Sustainability,
1.2.2 Aviation and Product Safety

See 1.2.1 The Company’s Approach to Sustainability,
1.2.3.a Aviation and Product Safety

Health & Safety
103-1

Explanation of the material topic and its Boundary

103-2

The management approach and its components

103-3

Evaluation of the management approach403-1

Occupational H&S management system403-2

Hazard identification, risk assessment, and incident
investigation

403-3
403-4
403-5
403-6

Occupational health services
Worker participation, consultation,and communication on occupational H&S
Worker training on occupational H&S

403-7

Prevention and mitigation of occupational H&S
impacts directly linked by business relationships

403-9

Work-related injuries

See 1.2.1 The Company’s Approach to Sustainability,
1.2.3.c Health and Product Safety, 1.2.6 Responsible Supply
Chain, 1.2.9 Vigilance planSee 1.2.3.c Health and Product Safety, 1.2.6 Responsible
Supply Chain, 1.2.8 ESG Data Board (Social performance),
1.2.9 Vigilance plan

Respect Human Rights and Foster Inclusion
Inclusion & Diversity
103-1

Explanation of the material topic and its Boundary

103-2

The management approach and its components

103-3

Evaluation of the management approach

405-1

Diversity of governance bodies & employees

See 1.2.1 The Company’s Approach to Sustainability,
1.2.4.b Inclusion & Diversity, 1.2.6 Responsible Supply Chain
See 1.2.4.b Inclusion & Diversity, 1.2.6 Responsible Supply
Chain, 1.2.8 ESG Data Board (Social performance),
4.1 Management and Control, Board of Directors composition
and Executive Committee composition on airbus.com

Workforce and human rights

116

103-1

Explanation of the material topic and its Boundary

103-2

The management approach and its components

103-3

Evaluation of the management approach

401-1

New employee hires & employee turnoverSee 1.2.4.d Our Workforce, 1.2.8 ESG Data Board(Social performance)
See 1.2.4.d Our Workforce

401-2

Benefits provided to full-time employees

404-1

Average hours of training per year per employee

404-2

Programs for upgrading employee skills and transition
assistance programmes

404-3

Percentage of employees receiving regularperformance and career development reviews

Airbus / Registration Document 2021

See 1.2.1 The Company’s Approach to Sustainability,
1.2.4.a Inclusion & Diversity, 1.2.4.d Our Workforce,
1.2.6 Responsible Supply Chain, 1.2.9 Vigilance Plan

See 1.2.4.d Our Workforce, 1.2.8 ESG Data Board(Social performance)

1. Information on the Company’s Activities /1.2 Non-Financial Information

GRI

201-3

Disclosure

Related content

Defined benefit plan obligations and otherretirement plans

See Risk Factors 1.Financial Market Risks (Pension
Commitments), 2.1.6.1 Cash Flows (Contribution to Plan
Assets of Pension Schemes), 4.2.1.3 Implementationof the Remuneration Policy in 2021: CEO (h.Retirement)

1

Please refer to “Notes to the IFRS Consolidated Financial
Statements – Note 31: Post-Employment Benefits”
407-1

Freedom of Association & Collective bargain

See 1.2.4.a Human Rights, 1.2.4.c Labour Relations,
1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board(Social performance)

412-1

Operations that have been subject to human rights
reviews or impact assessments

See 1.2.4.a Human Rights, 1.2.8 ESG Data Board(Social performance), 1.2.9 Vigilance Plan

412-2

Employee training on human rights policies orprocedures

See 1.2.4.a Human Rights, 1.2.8 ESG Data Board(Social performance)

Exemplify Business Integrity
103-1

Explanation of the material topic and its Boundary

103-2

The management approach and its components

103-3

Evaluation of the management approach

205-1

Operations assessed for risks related to corruption

See Risk Factors – 3. Legal Risks, 1.2.5 Exemplify Business
Integrity, 1.2.8 ESG Data Board (Social performance),
1.2.9 Vigilance Plan

205-2

Communication and training about anti-corruption
policies and procedures

See 1.2.5 Exemplify Business Integrity, 1.2.8 ESG Data Board(Social performance), 1.2.9 Vigilance Plan

205-3

Confirmed incidents of corruption and actions taken

See 1.1.7 Legal and Arbitration Proceedings,
1.2.5 Exemplify Business Integrity, 1.2.8 ESG Data Board(Social performance), 1.2.9 Vigilance Plan

See 1.2.1 The Company’s Approach to Sustainability,
1.2.5 Exemplify Business Integrity, 1.2.9 Vigilance Plan

Responsible supply chains
103-1

Explanation of the material topic and its Boundary

103-2

The management approach and its components

103-3

Evaluation of the management approach308-1

New suppliers screened using environmental criteria

308-2

Negative environmental impacts in the supply chain
and actions taken

See 1.2.1 The Company’s Approach to Sustainability,
1.2.6 Responsible Supply Chain, 1.2.9 Vigilance Plan

See 1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board(Social performance), 1.2.9 Vigilance Plan

See 1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board(Social performance), 1.2.9 Vigilance Plan

409-1

Negative social impacts in the supply chain andactions taken; Operations and suppliers at significant
risk for incidents of child labor; Operations andsuppliers at significant risk for incidents of forced
or compulsory labor

204-1

Proportion of spending on local suppliers

See 1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board(Social performance), 1.2.9 Vigilance Plan

414-2
408-1

Community Impact
103-1

Explanation of the material topic and its Boundary

103-2

The management approach and its components

103-3

Evaluation of the management approach

203-1

Infrastructure investments and services supported

203-2

Significant indirect economic impacts

201-1

Direct economic value generated and distributed

See 1.2.1 The Company’s Approach to Sustainability,
1.2.7 Community impact
See 1.2.1 The Company’s Approach to Sustainability,
1.2.7 Community impact
See 1.2.1 The Company’s Approach to Sustainability,
1.2.6 Responsible Supply Chain, 1.2.8 ESG Data Board(Social performance)

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1. Information on the Company’s Activities /1.2 Non-Financial Information

1.2.13 SASB Correspondence Table
Sustainability Disclosure Topics & Accounting Metrics
Energy Management
Total energy consumed, percentage grid electricity, percentage renewable--

RT-AE-130a.1

See 1.2.2 Lead the Journey towards
Clean Aerospace
See 1.2.8 ESG Data Board, section
Environmental Performance / Energy

Hazardous Waste Management-- Amount of hazardous waste generated, percentage of hazardous waste
recycled-- Number and aggregate quantity of reportable spills, quantity recovered

RT-AE-150a.1
RT-AE-150a.2

Data Security
Number of data breaches, percentage involving confidential information
Description of approach to identifying and addressing data security risks
in company operations and products

RT-AE-230a.1
RT-AE-230a.2

Product Safety-- Number of recalls issued, total units recalled-- Number of counterfeit parts detected, percentage avoided-- Number of Airworthiness Directives received, total units affected-- Total amount of monetary losses as a result of legal proceedings

RT-AE-250a.1
RT-AE-250a.2
RT-AE-250a.3
RT-AE-250a.4

Fuel Economy & Emissions in Use-Phase
Revenue from alternative energy-related products
Description of approach and discussion of strategy to address fueleconomy and strategy to address fuel economy and greenhouse gas(GHG) emissions of products

RT-AE-410a.1
RT-AE-410a.2

associated with product safety---

Materials Sourcing-- Description of the management of risks associated with the use of criticalmaterials

See 1.2.8 ESG Data Board, section
Environmental Performance / Waste

from reportable spills---

See 1.2.2 Lead the Journey towards
Clean Aerospace

See 1.2.3.b Cyber Security
See 1.2.8 ESG Data Board, section
Social Performance / Cybersecurity

See 1.2.3.a Aviation
and Product Safety

See 1.2.10 EU Taxonomy
See 1.2.2 Lead the Journey towards
Clean Aerospace

RT-AE-440a.1

See 1.2.6 Responsible Supply Chain

RT-AE-510a.1
RT-AE-510a.2
RT-AE-510a.3

See 1.2.5 Exemplify Businessintegrity

Business Ethics-- Total amount of monetary losses as a result of legal proceedings associatedwith incidents of corruption, bribery, and/or illicit international trade-- Revenue from countries ranked in the “E” or “F” Band of Transparency
International’s Government Defence Anti-Corruption Index-- Discussion of processes to manage business ethics risks throughout
the value chain

Activity metrics-- Production by reportable segment: Production should be disclosed as--118

the number of units produced by product category, where relevant productcategories include ground vehicles, aircraft, marine vehicles, vehicle
and aircraft components, and space and weapons systems.
Number of employees

Airbus / Registration Document 2021

RT-AE-000.A
RT-AE-000.B

See 2.1.4 Results of Operations(2.1.4.1 Revenues)
See 1.2.8 ESG Data Board

1. Information on the Company’s Activities /1.3 Other Corporate Activities

1

1.3 Other Corporate Activities
Digital and Information Management at Airbus: Overview
The five years of digital transformation paved the way for Airbus
to become an advanced digital company from the early designof its products to the digital services the Company is offering
to its Customers.
The impact in 2020 and 2021 of the COVID-19 crisis highlighted
the need for long-term resilience and business continuity. Digital
has enabled new ways of working and flexibility, and continuously
enhanced our industry. Putting in place strong and modern
information management, cybersecurity, data governance andskills was the foundation for reaching this objective.
The five years of digital exploration, incubation andindustrialisation have resulted in mature industrial-grade digitalaviation platforms such as Skywise, Digital Design Manufacturing

and Services, Artificial Intelligence, Advanced Analytics, Airline
Sciences and Augmented Reality. These capabilities have been
embedded into the Company’s mainstream activities to createa seamless digital experience. This is vital for the production
rate adaptation and also for deliveries.
Digitisation brought a wind of change in our mind-sets, andas the world evolves, the strategy does too, to push theboundaries on processes, people, products and services andto capture opportunities. This will further prepare the Company
to embrace the challenges of delivering its programmes withhighest flexibility, while laying the ground for a sustainable
future.

Digitally Enabled End-to-End Processes
Digital Design, Manufacturing and Services (“DDMS”)
DDMS is a group-wide transformation programme aiming at
creating a digital environment, where our future generation
aerospace products, their industrial and support and services
systems will be virtually designed and qualified in a connected
way for greater speed, efficiency and quality.
It is enabled by the definition of collaborative business processes
and data continuity across the entire programme lifecycle, theuse of model-based system engineering, and the applicationof a flexible and modular architecture approach to the codevelopment of our products, industrial and support and services
systems. Furthermore, digital twins will link the product, industrial
and operational systems.
The mandate is to be launch-ready for the next aircraft
programme, while securing early benefits by progressively
deploying the developed processes and capabilities on early
adopter programmes in all Divisions.
The major achievements this year were:–– Single-Aisle Fit for Future: Increased availability of
3D-configured Digital Mock Up (DMU), a sharp reduction in thelead-time for cabin and structure heads of version designs andimproved quality have been demonstrated. Further, key steps
have been made on the information system upgrade for theSingle-Aisle programme with the development of lean productlifecycle management. The savings provided by the DDMS
capabilities have already been factored into the operation
planning for the upcoming years. Lastly, key contributions
have been made to secure the solution development of theA321 XLR programme.
–– A350 Freighter: Key contributions have been made to secure
the opportunity of the programme with solutions such as new
airframe sizing, system design, virtual testing and industrial
assembly simulation capabilities.

–– Eurodrone and FCAS: Major capabilities (including designand configuration management) have been delivered to secure
the start of the programme for the Eurodrone. The common
working environment has been delivered to the Eurodrone andthe FCAS programmes, with a growing base of users and theconnection with the extended enterprise.
–– H175, H225 and LH programmes: Major contributions withthe deployment of digital shop floor solutions in the frameof Meca 4.0 factory in line with the programme milestones.
–– ZeroE concept: Delivery of the collaborative development
logic for the early phases for the ZeroE concept. Several
other capabilities have been delivered notably – System Of
Systems (SOS) trades to ease early-stage fact and modelbased decision making; industrial design space exploration
capability to speed up the industrial architecture phase;
top-down modular architecture and commonality policy toaccelerate the product lines approach.
–– Significant progress has also been made in terms of developing
learning solutions and up-skilling teams working on all theabove programmes, in order to ease the deployment of the
new concepts, capabilities and ways of working.
–– On the sustainability front, a digital model has been built toevaluate associated transition risks that might challenge theassumptions for our next generation of developments, suchas evolution of travel demand or energy price and availability.
This digital model has been recognised and adopted for open
and shared development with key financial stakeholders in the
OS-Climate consortium.

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1. Information on the Company’s Activities /1.3 Other Corporate Activities

Airline Sciences
The aim of the Airline Sciences team is to provide an operational
digital representation of an airline in all its complexities andbusiness models. Having a bottom-up approach enables theCompany to test out different aircraft technologies and concepts,
validate product strategy, help out in sales campaigns, develop
new services and, more importantly, understand the customers’
perspective across all layers of the Company.
Against the backdrop of the ongoing COVID-19 crisis, and of thegreater shift towards reducing aviation’s global environmental
footprint, the Airline Digital Twin capability was heavily used toassess CO 2 and non-CO 2 effects, including comprehensive
emissions calculations as well as operational sensitivities aroundcontrail avoidance.
Beyond the traditional emissions calculations, we have also
started incorporating the predicted climate impact. This
exploration will take several years, but is key in buttressing any
future global climate impact legislation and key technologies
development.
Finally, in the context of Aircraft Sales campaigns, the Airline
Digital Twin was used in supporting Ultra-long-haul A350 studies
for various potential customers. A comprehensive market
assessment was carried out, including building an optimal airline
fleet and product strategy to maximise airline profitability.

Artificial Intelligence (“AI”)
After successfully applying AI across the business domains, theCompany is now accelerating and maturing its industrial setup
to deliver AI at scale. This includes a focus on making available
reusable and accessible core AI technology capabilities andpatterns, to accelerate the time to market as well as increase thecapacity to deliver AI products and services. These capabilities
include:–– Computer vision to enable visual quality inspection and improve
the safety and quality of our manufacturing environment.
–– Pattern recognition and time series analysis to detect
anomalies and avoid failure in our industrial machines andaircraft.
–– Natural language understanding and processing to classify
data (e.g. export control) and secure our compliance.
–– Optimisation to improve scheduling and planning activities.
–– Hybrid modelling through machine learning to build surrogate
models of physical systems, accelerating design activities andincreasing potential design space.
They are being complemented with a central governance and life
cycle management of a wide range of operationalised artificial
intelligence and decision models (ModelOps) framework which
will further pave the way to ensure compliance for using AI insafety relevant systems in line with upcoming regulations.

Internet of Things (“IoT”)
In 2021, the IoT platform has become the core standard industrial
platform aiming at transforming any connected object data intoa standardised, structured data-set, usable from any industrial
application. A self-service dashboard has been created to allow
any user to connect its objects and create its own data flow andalerting system.

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The platform is ready to support hundreds of thousands ofobjects with industrially automated operations. Any industrial
application in the DDMS landscape can then be developed using
IoT data: track and trace (tracking objects), metering (getting
sensors level), traceability (using RFID technology) or machinedata (robots or industrial machines).

Virtual, Augmented and Mixed Reality
The presence of mixed reality is increasing and will be usedeverywhere in our lives in the coming years. In 2021, we have
prepared a common Airbus wide platform aiming to support
use cases needing augmented or virtual reality. Augmented andvirtual reality solutions are already implemented in Airbus Defence
and Space, and Airbus Helicopters; they will be implemented in
Airbus Commercial in 2022.
Augmented reality coupled with IoT and data flows, bringing
contextualised data closer to the worker, will increase efficiency
and product quality for the augmented worker.

Automation and Robotics
In 2021, Digital & Information Management has created andformalised the necessary architecture foundations for an
implementation of production robotics.
All data coming from the shop floor to Airbus Information
Systems goes through the Airbus manufacturing integration
layer before being transferred to manufacturing execution system(MES), IoT Platform or shop floor monitoring applications. This
manufacturing integration layer is securing cyber security ofoperations, data safety and data integrity, along with additionalfeatures like data contextualisation and edge computing coveringhigh frequency data acquisition. It is providing a single source ofindustrial automation data to all applications, and making readyfor a harmonised and secure connection of production robotics.
Additionally, a test bench for autonomous guided vehicles (AGVs)
was established in the industrial environment in order to allow
the testing of AGVs in a robot-human interface, as well as thedevelopment of tracking solutions.

Cyber Security
In 2021 we have seen a new step on the cyber security
transformation journey with the introduction of the new
management team and the growth of the internal team inEurope, as well as in India. Together, we have built on the great
foundations that have been put in place over the last few years.
We have introduced more structure, with the associated routinesand rituals, but importantly more collaboration with the otherinformation management domains, the other Airbus Divisions,the subsidiaries and affiliates and the corporate security teams.
All of this will enable us to develop a greater cyber security
capability right across Airbus. This year we achieved anotherincrease in Cyber Security maturity, translated into an important
reduction of the 16 high-level risks we use to track, report andprioritise.
We saw key extensions to the Security Operations Centre andremediated a further 68 critical systems. All supplier pool rooms
were migrated to standard secure connections and 182 industrial
assets have been segregated on a dedicated network. This all inparallel to providing key architecture and consultancy services
across the Company.

1. Information on the Company’s Activities /1.3 Other Corporate Activities

The next phase of our transformation journey will be to continue
the stabilisation of the information management cyber security
position through our continued achievements, with a focus on
further enhancing coverage of cyber controls and reinforcing
our cyber products in their run mode. Let’s continue to identify,
protect, detect, respond, and recover to the ever evolving threats
and challenges.

Digitally Enabled Products and Services
SkywiseAt its origin in 2015, Skywise was launched to make the data
locked in our discrete legacy systems accessible and actionable
by those needing it for their day-to-day operations. Now fully
industrialised, Skywise is in 2021 adopted by more than 20,000
Airbus employees, it has also become an airline favourite.
Skywise is the flagship platform of the aerospace industry’s digitaltransformation, linking original equipment manufacturers, airline
customers and aerospace suppliers. In 2021, the Company’s
open aerospace data platform continued to grow despite the
COVID-19 crisis, and proved how the Company’s strategy toplace data at the heart of the transformation was a successful
bet. With data unlocked from previous siloes, a virtuous circle has
been created: with in-service data flowing back into operations
and aircraft design, delivering incremental ameliorations andimprovements. Data architecture ensures that data becomes the
single source of truth powering the Company’s operations andproducts, transforming the Company into a more fact-based,agile, empowered and data-driven organisation.
Building on the successful industrial use cases, Airbus initiatedthe implementation of its Airbus data product strategy that aims
at supporting end-to-end business processes with an integrated
data flow, recreating hence the digital continuity for Airbus legacy
programmes. This effort is paving the way for DDMS digitalcontinuity framework.
Every airline or supplier reported improvement to their workflows
and operations after adopting Skywise. With more than 140
airlines now using Skywise, based on their testimonials weestimate that Skywise has saved the airline industry at least
US$ 200 million a year and has accelerated their return-toservice across their entire fleets. 2021 was also the year of thelaunch of Skywise Store and the 3rd party Applications Editor
programmes, enabling airlines to benefit from value propositionsof Airbus as well as other independent applications vendors.
Furthermore, 2021 was the year of Digital Alliance expansion
with new members.
This exponential growth was sustained because Skywise wasdesigned from the start with the right security framework, a strict
data governance implementation and industrial scalability. This
made it possible to start small and then scale up. The technology
partner’s world-leading capabilities in data integration played a
key role in the adoption; yet this exponential growth was driven by
the focus on value creation and engagement with the business,more than by the technology itself.

Digital Services for Helicopters
Airbus Helicopters has launched a transformation plan todrastically change the customer digital journey throughout its
products lifecycle and operations. A new collaborative platform
was created to reinforce the link between customers, employees& partners.

1

Collaboration is at the heart of the design of the new AirbusWorld
Platform launched in 2020 with a completely renewed experience,a set of new services and functionalities to boost the efficiencyof the Helicopters ecosystem.
The single platform to share information and support activities
with customers and partners has more than 40,000 users,
customers, partners and employees It is embedded in our new
support and services practices, keeping the proximity especiallyin the specific context of the COVID-19 crisis.
The platform is continuously enriched with improvement, newservices and new increments delivered every three months,
embedding customer feedback, innovations and new standards.

Digitally Enabled People
Google Workspace Deployment
Google and Airbus continue to partner to further improve
the functionalities of Google Workplace. 2021 has seen the
improvement of offline capabilities, of user experience onmobile devices, of automatic translation features, but also thedevelopment of the client side encryption capability, allowing
end users to encrypt their most sensitive documents with Airbus
encryption keys. 2022 will see further deployments in Airbus
Helicopters, Airbus Defence and Space and Airbus Atlantic.

Data Analysts Certification
Proving that our employees are hungry to learn and develop
the key skills necessary to drive our digital future, the Digital
Academy continued to push for Airbus Data Analytics & Artificial
Intelligence certification throughout 2021 at great pace with
220 further graduates within All Airbus Divisions, functions
and countries. This initiative takes the total to more than
1,000 graduates from 15 countries, across all Divisions andsubsidiaries, which continues into its fifth year in 2022.

Digitally Inspired New BusinessConnected Cabin
In 2021, Digital, Program Cabin, Engineering and Customer
Services joined together to build a platform, distributed fromthe ground to the Aircraft for Airlines and Entertainment Furniture
Equipment providers. Many use cases will be designed andbased on this platform: for instance, in-flight entertainment
adoption has already started. In 2022, a minimum value productis planned to be delivered to first customers.

Concluding Remarks and 2022 Challenges
The collective effort done in 2021 by all the Company’s
stakeholders let to the success of the information management
simplification. It also highlighted and strengthened the value
delivered to businesses and customers thanks to a morecomprehensive and coordinated central value management.
This effort will continue in 2022.
In 2021, Airbus set the scene of the future, raising digital at
the heart of the Company. In 2022, the evolution will continue
with a compilation of developments and rationalisations in all
digital initiatives. Starting with the DDMS programme, that will
endeavour the journey to carry out more efficient production
processes while also rolling out the digital landscape of the

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1. Information on the Company’s Activities /1.3 Other Corporate Activities

future. Cybersecurity will continue to boost its ability to handle
future threats by deploying cutting-edge organisation andtechnologies, which will bolster measures to prevent incidents
across the group. The journey will be also coloured by “green”
IT, so contributing to a sustainable decarbonised future.

securing continuous improvement in divisional competitivenessand the ability to develop business. Within the Company,
commercial specific priority is given to technologies forsustainable next-generation aircraft, bringing together product,
production system and services.

The digital potential for continuity and end-to-end industrial
resilience has been demonstrated for two years in a row.
Nevertheless, the possibilities have to be further implemented.
We progressed a lot in setting the ground for the “cloud” shift andin better understanding how our already efficient industry canbe improved even further. There are still margins to be tackled
where digital has a major role to play to make Airbus ready toshape the future of the aerospace industry.

In order to maximise the Company’s R&T activities, the Divisions
leverage the external ecosystem, utilising the portfolio of
projects for funding opportunities and engagement with global
partnerships, research institutes and universities. This ensuresefficient R&T portfolio execution, and benefits from new ways
of working including but not limited to agile methodology
and minimum viable product demonstration strategy.
Responsibilities include securing continuous improvement indivisional competitiveness and the ability to develop businessby establishing and driving the Company’s R&T ambitions.

These initiatives will continue to succeed if they are addressedin a transverse, open and bold way, by taking an even closer,
more granular and at the same time holistic view of the entire
ecosystem. What will make the difference is our readinessto take a pragmatic look at them and to act collectively andcollaboratively.

Research and Technology
The Airbus Engineering and Technology Department is led by
the Chief Technical Officer (“CTO”). Part of its responsibility
is to define, deliver and protect all the Company’s researchand technology (“R&T”), enable technology synergies acrossthe group, federate the Company’s innovation activities andensure expertise in breakthrough technologies. The department
applies a lean project-based approach, tracked and managed
using earned value management, technology readiness levels
and figures of merit. Technological collaboration with external
research communities and partners is encouraged andcoordinated through the department with technical and scientificexperts. These duties are delivered through the capabilities
outlined here below.
The Company-wide integration of R&T technology and alignment
with institutional research partners is achieved through crossportfolio technology planning and roadmapping, giving an
exhaustive view of technology targets and investments. In
addition, Company-wide engagement for joint funding withpublic agencies is achieved through a common R&T Funding
contract management.
Central R&T (“CRT”) is the cross-divisional R&T organisation that
prepares the Company’s long-term technological capabilities.
CRT leads specific investigations in emerging areas of researchand conducts ambitious research projects while leveraging
leading academic, scientific and research institutions to best
utilise their expertise for achieving the Company’s ambitions.
Development of selected breakthrough technologies is
accelerated through Airbus demonstrators, by employing rapid
maturation methods. This function delivers, thanks to its fully
owned Airbus UpNext subsidiary, flight and ground demonstrator
projects that drive collaborative new ways of working, provide
the highest level of transparency and challenge the status quo
by embedding Airbus’ technology DNA in a highly dynamic
environment.
Each Division has its own R&T function, defining and delivering
the divisional projects. The divisional R&T functions are primarily
planning, decision making and arbitration teams, which areaccountable within their perimeters to both Technology, Divisional
Engineering and Product Strategy. Their responsibilities include

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Fast-track roadmap owners serve as principal advisors to the
CTO on technical vision and roadmaps for associated technology
areas. Fast-track roadmaps ensure coherency in the portfolio ofactivities and for the rapid advance of strategic priorities. Current
fast-track roadmaps cover:–– electrification;–– industrial systems and manufacturing;–– connectivity;–– autonomy;–– materials;–– artificial intelligence.
The Company’s intellectual property is protected, secured
and defended through a central intellectual property function
responsible for patent applications, portfolio investigations andportfolio defence.
Technological innovation and outreach to expertise in specificregions is delivered through three units: Acubed in Silicon
Valley; Airbus Innovation Centre in China; and Airbus Scale,bringing together corporate innovation, start-up engagement
and company building activities.

Key Progress in 2021
Airbus Demonstrators – Airbus UpNext
Airbus UpNext is actively shaping the future of the aerospaceindustry as part of the Airbus innovation ecosystem by building
demonstrators at speed and scale, in order to evaluate, matureand validate potential new products and services that encompass
radical technological breakthroughs.
The fello’fly demonstrator, with the objective to prove thetechnical, operational and economic viability of wake energy
retrieval for commercial aircraft, was successfully handed overfrom Airbus UpNext to Airbus Commercial in December 2021.
This was done after the project had successfully performed
the first long-haul demonstration of formation flight in general
air traffic (GAT) regulated transatlantic airspace, with two A350
aircraft flying at three kilometres apart from Toulouse, France
to Montreal, Canada. The aircraft were greeted at MontrealTrudeau International Airport. Over six tons of CO2 emissions
were saved on the trip, confirming the potential for more than a
5% fuel saving on long-haul flights.
The Airbus UpNext TELEO demonstrator project proved thefeasibility to provide a communications experience in the
air at the same level of quality as customers have come to1. Information on the Company’s Activities /1.3 Other Corporate Activities

expect on the ground, thanks to a smart usage of the various
communication channels available on board. This so-called
Airbus UpNext TELEO smart routing is the result of a broad
review of the commercial software defined networking solutions(13 suppliers), most of them tested in a dedicated benchmark lab.
The selected solution has then been implemented on commercial
avionics, validated through rigorous lab testing, field tested on
ground vehicles and finally flight tested on an A350-XWB all
within three years, and is recognised as having reached thepoint of a minimum viable service.
In parallel, by developing a very high-capacity analogue opticalfeeder link communication, TELEO demonstrated the potential
for space solutions to offer data rates beyond current radio
frequency transmission limits. Although the solution will only
be fully proven and validated in 2023 (in space demonstration
onboard the Arabsat BADR 8 satellite), it is already part of Airbus
Defence & Space’ ongoing product solutions, and will continue
to be developed and deployed in the years ahead.
In September 2021, Airbus UpNext launched an extraperformance wing demonstrator project focused on accelerating
and validating technologies that will improve and optimise wing
aerodynamics and performance for any future aircraft. This
scaled demonstrator will integrate and fly breakthrough wingtechnologies on a Cessna Citation VII business jet platform in
representative flight conditions. The applications of the extraperformance wing would be compatible with any propulsion
solution and aircraft configuration and would reduce CO 2
emissions, contributing greatly to Airbus’ decarbonisation
roadmap.
In April 2021 Airbus UpNext announced VERTEX, a demonstrator
with the aim to simplify mission preparation and management,
reduce helicopter pilot workload, and further increase safety.
The autonomous technology bricks set to integrate the Flightlab
are: vision-based sensors and algorithms for situationalawareness and obstacle detection; fly-by-wire for enhanced
auto-pilot; and an advanced human-machine-interface – inthe form of a touchscreen and head worn display for inflightmonitoring and control. The combination of these technologies
will enable a system that can manage navigation and route
preparation, automatic take-off and landing, as well as following
a predefined flight path. The incremental integration of thesetechnologies onto the helicopter Flightlab has begun ahead of
a complete demonstration in 2023.
In March 2021, Airbus UpNext announced ASCEND “Advanced
Superconducting and Cryogenic Experimental powertraiN
Demonstrator” to break through the performance of electric
propulsion systems below 1MW and enable high-power
propulsion (>1MW) using superconducting materials andcryogenic temperatures. These technologies will also optimise
or enable new propulsion architectures for low and zero emission
flight. The results are expected to show the potential for a 50%
reduction in component weight and an increase in efficiency
of more than 5%. It will also show a reduction in the volume ofelectrical components, the complexity of the installation as well
as a reduction of the voltage below 500V, compared to current
systems.
The ZEROe concept planes revealed in September 2020 unveiled
the Company’s investigation and research into hydrogen-based
propulsion. Airbus UpNext is preparing the ground for technology
maturation and demonstration, actively identifying and de-risking
the main technology bricks to support Airbus’ 2035 ambition.

1

The Autonomous Taxi, Take-off and Landing (“ATTOL”)
demonstrator leveraging computer vision technologies andtechniques successfully finished in 2020 is progressing. Further
work on safety enhancing systems that goes beyond ATTOL
state-of-the-art is ongoing.
In December 2021, Airbus increased its presence in Spain withthe launch of an Airbus UpNext entity, a wholly-owned innovation
subsidiary. The Spanish Airbus UpNext entity will initially be
accountable for the study and demonstration of hydrogenpowered non-propulsive energies, as well as autonomous airto-air refuelling operations applying advancements in visionbased technology. This new presence will leverage the expertiseof Airbus Commercial Aircraft, Airbus Helicopters and Airbus
Defence and Space in Spain.

AcubedAcubed is the Company’s innovation centre based in Silicon
Valley, an epicenter of tech talent and investment. Acubed’s
mission is to develop and deliver breakthrough technologies
at the intersection of software and hardware. Since 2015,
Acubed has been a driving force to help Airbus build thefuture of flight. Initially set up to disrupt Airbus from within to
mitigate disruption from external forces, Acubed kick-started
Airbus’ exploration of areas such as electric vertical take off
and landing aircraft (Vahana), mobility-as-a-service (Voom),
Unmanned Traffic Management (Airbus UTM), Advanced Digital
Design and Manufacturing (ADAM), and modular cabin concepts(Transpose), among other emerging trends.
With over six years of operations, Acubed’s model has evolved toensure it injects lasting value and expertise from Silicon Valley into
Airbus. Its current flagship projects are closely aligned to Airbus’
strategic priorities and aim to help Airbus secure and maintainleading positions in new and emerging aerospace markets.
Acubed’s Wayfinder team is developing certifiable autonomous
flight and machine learning solutions to help Airbus bringabout a significant increase in safety and efficiency in the next
generation of commercial aircraft. In 2021, the team progressed
its vision-based landing flight test programme, adding new
cameras and processing to handle night-time imagery to its
flying testbed operating out of Palo Alto Airport, in order tocontinue laying the groundwork for more autonomous aircraft
systems. The Wayfinder team, which delivered AI algorithms
in 2021 for vision-based landing and taxi functions for testingon an A350 flight test aircraft, is working hand-in-hand with
Airbus’ teams in Europe to continue to improve and iterate on
their computer vision-based autonomous systems and datadriven development in order to support the Company’s wider
autonomy goals.
The Advanced Digital Design and Manufacturing (ADAM)
team at Acubed is seeking to future-proof the aerospace industry
through the application of digital innovation to design andmanufacturing. Whether adapting manufacturing processes togain efficiencies or to cope with disruptions, ADAM is helping to
reduce lead times, production costs and to improve workflows
dynamically, while helping to blend software and hardware
expertise, an emerging skill set required for future aerospace
careers. In 2021, the ADAM team actively delivered on a numberof engagements, namely for the DDMS organisation in Europe
to digitally generate cabin layout options for customers’ quick
turn-around service upgrade offers; to the US final assemblyline in Mobile, USA, generating measurable improvements in

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1. Information on the Company’s Activities /1.3 Other Corporate Activities

logistics, AOS and quality; and to the engineering departmentin the US and Europe implementing the automation of stressanalysis processes (e.g. A321XLR ribs, spars, and covers).
The Airbus Unmanned Traffic Management (UTM) team at
Acubed is enabling autonomous and digital operations to ensurea safe, fair and efficient airspace through research, simulations
and industry collaboration. The team is building a suite ofproducts to provide an extensible baseline UTM ecosystem,
which includes the provision of essential aeronautical information
services such as the FAA-approved Low Altitude Authorisation
and Notification Capability (LAANC) airspace authorisation.
Airbus UTM is partnering with Metron Aviation to participate inNASA’s Advanced Air Mobility National Campaign, in which theysuccessfully completed all required testing and development of
UTM concepts as part of the X3 phase, and have now enteredinto the next X4 phase. The team is currently focused on industry
needs and adoption of simulation-as-a-service to validate UTM
concepts, as well as on growing the number of operators using
their authoritative data products.

Airbus China Innovation Center (“ACIC”)
ACIC, based in Shenzhen, is the first innovation centre set up by
the Company in Asia. Its mission is to fully leverage China’s local
innovation ecosystem including talents, partners and resources,
combined with the Company’s expertise in aerospace, todiscover promising technologies, to identify solutions enabling
new services, and to fast-track delivery of innovation projects.

Manufacturing Innovation
The team is tasked to explore industry 4.0 technologies toimprove efficiency and safety on shop floor, as well as to leverage
Airbus’ industrial sites in China for accelerated local testing andglobal dissemination. The team is working on computer vision,
AGV, 5G industrial connectivity, smart tooling, remote inspection,
green factory and IoT. Various applications are handed over tobusiness and implemented in daily operation.

Cabin Experience
The team is tasked with providing innovation for the cabin
and cargo of tomorrow, to enhance Airbus’ local cabinoffering (localisation) and to increase value for Airbus global
cabin products (from local to global). The team is working on
broadband connectivity with 5G, a smart cabin operation system
contributing to Airspace Link, flexible displays and cabin hygienic
Solutions.

Tech lab
The team is working on computer vision algorithm development,
battery scouting and testing, various types of sensors fit todifferent scenarios and fast electronics prototypes building. The
team is also starting to engage with certain industry standard
making organisations, to influence standards with aeronautic
requirements.

Airbus Scale
Airbus Scale focuses on active innovation delivery and operates
on three different levels all integrated under one “roof”:–– Corporate Innovation: Fostering entrepreneurship and outof-the-box thinking within Airbus’ own culture. The vehicle bywhich Airbus “intrapreneurs” can submit a business strategy

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or an idea, after which Scale will vet it against the Company’s
growth strategy. If there is a match, Scale will deliver a businessmodel and develop a viable product or service.
–– Start-up engagement: The team combines Airbus’ corporate
expertise with its ability to identify start-ups, partnering withthose which are at a later stage in order to mature and scaleideas through mutually-beneficial collaborations.
–– Company building: The team builds and launches new
businesses that will support the recovery and future growthof Airbus, based on existing non-strategic assets.
On top of those activities, Airbus Scale aims to support thebusiness with global technology scouting (GTS). GTS is a​​nefficient team spanning (almost) all continents in order to reachthe top innovation hotspots to lead the objective detection oftechnology and trends that support or disrupt Airbus’ business.

Commercial AircraftIn response to the COVID-19 crisis, Airbus commercial aircraft’s
R&T activity was refocused on zero emission technologies fornext generation aircraft, as well as other aircraft technologies,
including propulsion, wing, systems, fuselage, empennage andcabin. There is also a transverse technology stream comprisingindustrialisation, sustainability and maintenance technologies.
As part of its ambition to lead the decarbonisation of our industry,
Airbus will continue to develop hydrogen technologies around the
propulsion and liquid hydrogen storage and distribution systems.
Airbus already started in 2021 to capitalise early on learnings
in hydrogen technologies thanks to laboratory testing. This will
accelerate in 2022 with more integrated ground testing, as wellas the preparation of the forthcoming flight demonstrations. On
top of that, different aircraft configurations will be explored andmatured in 2022, to assess the most efficient way to integrate
those technologies inside the aircraft. The Company will also
continue its effort to support our customers to build their routeto-net-zero, and to grow its partnership landscape for criticaltechnology bricks and the future infrastructure.
Wing engineering and manufacturing demonstrators have madefurther progress, with the assembly in Broughton of the first fullscale wing box using elements from various plants and partners,
with learnings both for the product itself and its industrial system.
Airbus explored in 2021 the potential, the feasibility and theenablers of high aspect ratio wings.
In the propulsion perimeter, various types of future propulsion
architectures, product solutions, industrial technologies andcapabilities are being explored to unlock strong improvements inperformance and cost. Partnerships with engine and equipment
manufacturers were developed.
Research projects are also looking into the fuselage architecture,
its materials and industrial strategies, with academic andsupply chain partners. As part of the Clean Sky 2 EU research
programme, assembly of a full-scale barrel thermoplastic
demonstrator began in 2021. Use cases of sustainable materials
for cabin parts have increased in maturity. Disruptive productand assembly techniques for empennages have proven theirfeasibility and value.
Systems teams continued exploring platforms and components
for aircraft systems and landing gear, and researching areas
with potential for aiding more autonomous flights in the future.

1. Information on the Company’s Activities /1.3 Other Corporate Activities

Airbus Commercial progressed further in 2021 on the road todeveloping robotic and automation solutions in aircraft industrial
systems. Technological concepts to reduce in-service operational
interruptions and maintenance burdens have been defined.
Technology development in 2021 also included delivering options
for the continuous improvement of serial programmes such as
the A320 and A350 aircraft.

Airbus Helicopters
Significant steps forward were made in 2021 in the Researchand Innovation department, with activities focused on the main
demonstrators and techno-bricks.
The Flightlab, the Airbus Helicopters’ techno bricks demonstrator,
performed several tests in 2021:–– Eye for Autonomous Guidance Landing Extension (EAGLE),
based on a gyro-stabilised camera, was validated using an
artificial intelligence image processing software.
–– Rotor Strike Alerting System was fully validated for handover
to R&D for light helicopters.
–– Health and Usage Monitoring System (HUMS) was successfully
demonstrated for light helicopters using neural network andwireless sensors.
–– Engine Back Up System function was demonstrated on asingle engine helicopter.
The delivery of RACER’s flight components by the programme’s
European partners has started. The main fuselage was deliveredfrom Romania to Donauworth to finish the installation of the fuelsystem, and the canopy and was then transferred to Marignane.
The tail boom and wings were delivered from Airbus Helicoptersin Spain and Hamble Aerostructures Ltd according to theplanning. The development of the main gear box and lateralrotor gear boxes is ongoing in collaboration with Avio Aero. The
supercritical rear transmission was validated for flight. The firstflight is now planned for the second half of 2022.
The CityAirbus demonstrator, which is a fully electric urban air
mobility (UAM) vehicle, successfully finished its flight campaign in
Manching. The new eVTOL prototype, CityAirbus NextGen, wasunveiled during the Airbus Summit in September 2021, showing
excellent potential in terms of performance (range and speed) for
the future UAM applications. The first flight is foreseen in 2023,
paving the way for certification in 2025.

Airbus Defence and Space
During 2021, we still faced a challenging situation in the frameof R&T, so it was necessary to further review and streamline
the portfolio of R&T priorities and projects for the Division.
The concept of technology flagships has been essential
to facilitate and optimise this exercise of prioritisation. Five
different technology flagships define the main capabilities andcompetences required in the Division while maintaining a fullalignment across the programme lines and products portfolio:“Connectivity and Combat Cloud”, “Mission Management andData Exploitation”, “Cost Efficiency and Industrial Performance”,“Air Systems and Platforms”, and “Spacepower”.
This optimisation of the technology landscape also took into
account the reinforcement of links between R&T and R&D,
and emphasised technologies reaching an “adoption” by thebusiness and the programme lines, once the technologies reacha maturity level that allow their industrialisation and insertion
into a product.

1

In order to maintain a proper balance between short- and longterm technologies, part of the R&T portfolio has been ring fenced
to secure the activities focussing on strategic technologies, even
if not time-critically demanded by the programmes at this stage,under the assumption that mastering those technologies will
be key to maintain Airbus’ competitive positioning in the mid to-long-term (e.g. Quantum, advanced AI applications).
In terms of the main technology achievements, we achieved
significant progress across all flagships. Several deliveries for
direct insertion into products took place in the area of advanced
algorithms for data exploitation and automatic processing of
information from multiple sources (mission management
flagship). We also achieved the further delivery of core technology
bricks especially for the OneSat programme in several areas asthermal, propulsion, avionics, (Spacepower Flagship).
In the Air Systems and Platforms flagship it is relevant to highlightthe milestones achieved in the Integrated Safety Critical Control
Chain Computer technology for fighter aircraft, as well as the
preparation for the CleanSky 2 Flight Test Bed demonstrationflight that will take place in the first part of 2022, being the only
flight demonstration of the CleanSky 2 European Framework
Programme.
Regarding the Combat Cloud and Connectivity flagship 2021’s
main achievements were in the area of technology bricks andelements that contributed to successful campaigns in Skynet
6, as well as significant progress made on the Optical roadmap
for Space, with several elements further maturing and ready for
adoption and insertion into the TELEO demonstrator.
On the Cost Efficiency and Industrial performance flagship,
several elements of the additive manufacturing global roadmap
achieved maturity for industrialisation to be used into products
both in the space and aircraft environments, and a full set oftechnology solutions was delivered to optimise and reduce time/
cost in the manufacturing and industrial environment, ranging
from integration of digital solutions and tools to share data, todedicated solutions for improved ground electrical testing andtroubleshooting.
Finally, strong efforts were placed on reinforcing the different
national eco-systems footprint in the core nations. This isintended to maximise public-private collaboration, especially torecover from COVID crisis. This has led to an improvement in
the ecosystems, which will be further leveraged when preparing
different campaigns and proposals in the European framework,with strong emphasis on the Clean Aviation and European
Defence Funds Programs.

Central Research and Technology (CRT)CRT pioneers the future of aerospace by exploring and delivering
ambitious new technologies of maximum potential impact on
Airbus future products and services. CRT operates at thejunction of the Airbus core and global research excellence withtwo main objectives:–– be a technical trailblazer: explore and deliver relevant newtechnologies, as well as de-risk and create new opportunities;–– prepare the skills of Airbus Tomorrow: Build internal capabilities
in strategic emerging technologies and provide the relevant
expertise to internal customers for technical support anddecision-making.

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1. Information on the Company’s Activities /1.3 Other Corporate Activities

In 2021, CRT had 57 projects running concurrently across its
domains. Highlights from these activities include the following.
–– Blue Sky: A function responsible for exploring early
breakthrough technologies that might change the game forthe aerospace industry. After having successfully advanced
research on terminals for quantum communications, andon materials recycling using novel biotechnologies. The
function has evolved to cover a wider scope of technologicaland societal factors, and focus on strategic value returns for
Airbus. New clusters have been launched: Future Energies(new ways to generate, convey and manage energy), Future
Matter (manipulating matter to generate new applications),
Future Brains (new dimensions enabled by advances
information capture, processing, distribution, virtualisation),and Future Links (re-thinking the transport of people, goods
and information).
–– Communications: The team is pioneering novelcommunication system architectures and technologies forpervasive and secure connectivity on our airborne platforms.
Several projects came to their final phase this year including lab
and flight demonstrations for ultra-high speed links between
flying platforms, a new wireless communication / sensing
system architecture for an aircraft cabin including remote
powering and a first implementation of a many-core processor
design for highly -critical applications. Further research is
ongoing to exploit quantum communication technologies toachieve maximum security for our airborne / space-borne
communication links.
–– Materials: 2021 saw a further push towards new technicalsolutions in the areas of circular raw materials, simulation/
digitalisation in materials, advanced processing and surface
technologies. These key areas will support sustainability
targets, products mission performance and competitiveness.
Organic and in-organic approaches are covered. An
optimisation of the lab operational organisation was done toenable further focus on key strategic areas.
Sustainability aspects are in the centre of the activities andfurther ramping up. Progress on the CO 2 negative carbon
fibre gives confidence that the first physical hardware will beavailable in 2022. Alternative recycling routes for composites
are being explored further (e.g. enzymatic recycling). Circularity
for titanium materials is showing good progress and will open
new opportunities regarding eco-friendliness and optimised
waste channels. A new project towards all green surface
preparation and protection has been started. Advanced materials
technologies for efficient and robust hydrogen storage solutions
have been initiated and accelerated.
In the area of digitalisation of materials (from materials definition,
to characterisation and analytics), the first AI based solutions forimage analytics have been handed over for divisional application.
AI in material design is being pushed for the first time to develop
smart, indicative coatings. Further projects on digital twindevelopment are progressing.

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Additive manufacturing of advanced materials is progressing
towards multi-material printing opportunities or robust printingof embedded electronics in structures.
–– Electrification technologies: During 2021, we madesignificant progress on several aspects of electrification andelectric propulsion techno bricks.
One related to electrical motor working at very high temperatures
yielded improvements in material sustainability, innovative
windings and heat exchanger technologies.
Another significant step was the successful demonstrationof power electronics components and systems working at
cryogenic temperatures, with a world premiere on a functional
prototype of DC-DC converter immersed in liquid nitrogen.
Finally, wireless power transfer technology for aeronautic
applications was demonstrated. We significantly improved the
maximum power transmitted over a few tens of centimetre air
gap. This technology has a clear application for UAV battery
charging with contact.
–– Virtual product engineering: The team has investigatedadvanced model based systems engineering technology
bricks to support co-development of product and industrial
systems, and has successfully demonstrated approaches tobe handed over to the DDMS (Digital Design Manufacturing
and Services) programme for industrialisation. In addition,
projects are running to support modelling and simulationneeds for future sustainable aircraft, including the use of
hybrid AI techniques to support traditional computational
approaches.
–– Data science: The team has concluded two projects
this year. One focused on learning local communication
routing policies and improving communication protocols forheterogeneous and highly dynamic networks. Another one
focused on providing proofs of neural networks’ robustnessthat will be needed to certify systems embedding machinelearning components. Both projects were handed over to therelevant divisional customers and will trigger new research
projects in the near future. Ongoing projects include virtualassistance integrating decision support for manufacturing andcockpit scenarios, usage of natural language to interact withrobots and development of in-process AI to support qualified
industrial processes.

1. Information on the Company’s Activities /1.4 Recent Developments

1

1.4 Recent Developments
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 after Russia's invasionof Ukraine on 24 February 2022, the Company announced
in March 2022 it has suspended the delivery of aircraft andsupport 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 and sanctions to
its facilities and operations in Russia. See “– Risk Factors –Business-Related Risks – Ukraine Crisis.”On 22 February 2022, Airbus, Safran and Tikehau Ace
Capital announced that they have signed a Memorandum ofUnderstanding with the mining and metallurgical group Eramet
for the acquisition of its subsidiary Aubert & Duval. The threepartners intend to acquire 100% of Aubert & Duval through a new
joint holding company that would be specifically set up for thistransaction and in which they would have equal ownership rights.
On 1 April 2022, a change took effect related to the Company’s
Defence and Space Division programme lines. Airbus Defence& Space integrated the programme lines Unmanned Aerial
Systems and Military Aircraft into a single business line. The
name of the new programme line is Military Air Systems.

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Chapter

2
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2Management’s Discussion
and Analysis of Financial
Condition and Resultsof Operations
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
2.1.6

Operating and Financial Review
Overview
Significant Accounting Considerations, Policies and Estimates
Performance Measures
Results of Operations
Changes in Total Equity (Including Non-Controlling Interests)
Liquidity and Capital Resources

130
131
134
135
139
143
144

2.2

Financial Statements

148

2.3

Statutory Auditor Fees

148

2.4

Information Regarding the Statutory Auditors

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

2.1 Operating and Financial Review
The following discussion and analysis is derived from and should be read together
with the audited IFRS Consolidated Financial Statements as of and for the years ended
31 December 2021, 2020 and 2019. These Financial Statements have been prepared inaccordance with International Financial Reporting Standards (“IFRS”) issued by the International
Accounting Standards Board as endorsed by the European Union, and with Part 9 of Book 2of the Dutch Civil Code. When reference is made to “IFRS”, this intends to be EU-IFRS.
The following discussion and analysis also contains certain “non-GAAP financial measures”,
i.e. financial measures that either exclude or include amounts that are not excluded or includedin the most directly comparable measure calculated and presented in accordance with IFRS.
Specifically, the Company makes use of the non-GAAP financial measures (i.e. Alternative
Performance Measures) “EBIT Adjusted”, “net cash” and “Free Cash Flow”.
The Company uses these non-GAAP financial measures to assess its consolidated financial
and operating performance and believes they are helpful in identifying trends in its performance.
These measures enhance management’s ability to make decisions with respect to resource
allocation and whether the Company is meeting its financial goals.
Non-GAAP financial measures have certain limitations as analytical tools, and should not be
considered in isolation or as substitutes for analysis of the Company’s results as reported
under IFRS. Because of these limitations, they should not be considered substitutes for the
relevant IFRS measures.
The Company also measures and communicates its performance on the basis of “EBIT”(reported).

Reporting in Universal Registration Document 2021
Impact of the COVID-19 pandemic. In 2020, the COVID-19 pandemic resulted in significant
disruption to the Company’s business operations and supply chain. In 2021, the commercial
environment has shown signs of improvements, in particular an increase in air travel demand.
The Company is monitoring the evolution of the COVID-19 pandemic and will continue toassess further impacts going forward. For further information, see “– Risk Factors – BusinessRelated Risks – COVID-19 Risks” and “Notes to the IFRS Consolidated Financial Statements– Note 2: Impact of the COVID-19 Pandemic”.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

2.1.1 Overview
The Company constantly innovates to provide efficient andtechnologically-advanced solutions in aerospace, defence, andconnected services. In commercial aircraft, the Company offers
modern and fuel-efficient airliners and associated services. The
Company is also a European leader in defence and security andone of the world’s leading space businesses. In helicopters, theCompany provides the most efficient civil and military rotorcraft

solutions and services worldwide. The Company’s consolidated
revenues amounted to € 52.1 billion in 2021, of which 82% in thecivil sector (compared to 79% in 2020) and 18% in the defence
sector (compared to 21% in 2020). As of 31 December 2021,
the Company’s active headcount was 126,495 employees, adecrease compared to 2020 (131,349 employees).

2

2.1.1.1 Exchange Rate Information
The financial information presented in this document is expressed in euro, US dollar or pound sterling. The following table setsout, for the periods indicated, certain information concerning the exchange rate between the euro, the US dollar and the poundsterling, calculated using the official European Central Bank fixing rate:
Average€/US$

Year-end
€/£

€/US$

€/£

31 December 2019

1.11950.87781.12340.850831 December 2020

1.14220.88971.22710.899031 December 2021

1.18270.8596

1.13260.84032.1.1.2 Reportable Business Segments
The Company operates in three reportable business 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 aircraft of more than 100 seats, aircraft
conversion and related services; development, manufacturing,marketing and sale of regional turboprop aircraft and aircraftcomponents. It also includes the holding function of theCompany and its bank activities.
–– Airbus Helicopters – Development, manufacturing, marketingand sale of civil and military helicopters; provision of helicopter
related services.
–– Airbus Defence and Space – Military Aircraft design,development, delivery, and support of military aircraft suchas combat, mission, transport and tanker aircraft and theirassociated services. Space Systems design, development,delivery, and support of full range of civil and defence
space systems for telecommunications, earth observations,navigation, science and orbital systems. Connected Intelligence
provision of services around data processing from platforms,
secure communication and cyber security. In addition, the main
joint ventures design, develop, deliver, and support missile
systems as well as space launcher systems. Unmanned Aerial
Systems design, development, delivery and service support.
On 21 April 2021, the Company presented its plans to create
integrated aerostructures assembly companies in both Franceand Germany, and a third company as a new global player in thedetail parts business, anchored in Germany. The plans have no
impact on the segment structure described above (see “Notes
to the IFRS Consolidated Financial Statements – Note 40: Events
after the Reporting Date”).
Consolidation effects are reported in the column “Eliminations”.
The activities related to innovation and digital transformation,
formerly reported in the column “Transversal/Eliminations”, areincluded in the Business segment Airbus under the new segment
structure.

2.1.1.3 Significant Programme
Developments in 2019, 2020 and
2021 and Other Financial Topics
A380 programme. Airbus delivered five A380 aircraft in 2021,
four in 2020 and eight in 2019.
As of 31 December 2018, the Company’s largest A380 operator
reviewed its aircraft fleet strategy going forward and concluded
it was forced to restructure and reduce its A380 order by 39
aircraft. As a consequence, the recognition of the onerous
contract provision as well as other specific provisions andthe remeasurement of the liabilities affected the consolidated
income statement before taxes by a net € 463 million in EBITand positively impacted the other financial result by € 177 million
as of 31 December 2018.
As a consequence and in addition to the net charge recorded
in 2018, the Company recorded a net charge of € 385 million in
EBIT in 2020 and of € 202 million in 2019, as part of its continuous
assessment of asset recoverability and review of onerous contract
provision assumptions. The Company delivered the last A380
aircraft in 2021. In 2021, a positive EBIT impact of € 274 million
was recorded, mainly reflecting the release of provision recorded
in 2018 on the former A380 Lagardère facility that will be used
for the modernised A320 FAL.
A350 XWB programme. In 2019, Airbus delivered 112 A350
XWB aircraft. New order intakes, cancellations, delivery
postponements and other contractual agreements to the endof December 2019 were reflected in the Financial Statements.
Risks continued to be closely monitored in line with the schedule,
aircraft performance and overall cost envelope, as per customer
commitments. Despite the progress made, challenges remainedwith recurring cost convergence. The breakeven target for theA350 was achieved in 2019. Given overall customer demand
for widebody aircraft, Airbus expected A350 deliveries to stay
between a monthly rate of nine and ten aircraft.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

On 8 April 2020, the Company announced its decision toadapt commercial aircraft production rates to six per month for
A350 in response to the new COVID-19 market environment.
Subsequently, the rate for A350 was further reduced to aroundfive per month. In 2020, Airbus delivered 59 A350 XWB aircraft.
Given the significant production rate reduction, the A350
programme did not reach breakeven with this level of deliveries.
In 2021, Airbus delivered 55 A350 XWB aircraft. On 28 October
2021, the Company announced the A350 programme isexpected to increase from around five to around six aircraft amonth in early 2023.
A400M programme. Developments on the A400M programme
resulted in the recognition of revenues of € 1.5 billion in 2019,€ 1.6 billion in 2020 and € 1.4 billion in 2021.
In 2019, 14 A400M aircraft were delivered. In total, the Company
had delivered a total of 88 A400M aircraft as of 31 December
2019. On 13 June 2019, the Company concluded together
with OCCAR and the Nations the negotiations on a global rebaselining of the programme. A contract amendment was signedby all parties, providing a revised aircraft delivery schedule, an
updated technical capability roadmap and a revised retrofit
schedule. Important certification milestones were achievedin 2019, in particular on critical Paratrooper Simultaneous
Dispatch and Helicopter Air to Air refuelling capabilities. Technicalmodifications corresponding to the New Standard Operating
Clearance (NSOC2) contractual standard were certified andqualified. However, NSOC2 Type Acceptance initially plannedin 2019 was still pending due to ongoing discussions on some
operational limitations. In the fourth quarter 2019, an updateof the contract estimate at completion was performed and an
additional charge of € 1,212 million recorded. This reflected
mainly the updated estimates on the export scenario during
the launch contract phase based on a revision of the market
perspectives taking into account the current environment,
including the suspension of the export licenses by the German
Government and its consequences on potential prospects. It
reflected as well some cost increases in particular for retrofit
and an updated view on applicable escalation.
As of 31 December 2021 the Company has delivered a totalof 105 A400M aircraft including eight aircraft in 2021 and nine
aircraft in 2020. The COVID-19 pandemic is weighing on theperformance of development, production, flight testing, aircraft
delivery and retrofit activities of the programme. The Company
has continued with development activities toward achieving therevised capability roadmap. Retrofit activities are progressing inclose alignment with the customer. In 2020, an update of thecontract estimate at completion was performed and a chargeof € 63 million recorded reflecting mainly the variation of priceescalation indexes. In 2021, an update of the contract estimate
at completion has been performed and an additional charge of€ 212 million has been recorded. This reflects mainly the updated
estimates on the delivery pattern of the launch contract andthe associated impact on unabsorbed costs. Risks remain on
the development of technical capabilities and associated costs,
on aircraft operational reliability in particular with regard to power
plant, on cost reductions and on securing export orders in time
as per the revised baseline.
A320 programme. In 2019, NEO aircraft deliveries rose by
43% year-on-year to 551 aircraft. The ramp-up continued for
the Airbus Cabin Flex (“ACF”) version of the A321 with almost 100
more deliveries than in 2018. The Airbus teams were focused on

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securing the ongoing ACF ramp-up and improving the industrial
flow. At that time, Airbus discussed further ramp-up potential for
the A320 programme beyond rate 63 per month with the supply
chain, and saw a clear path to further increase the monthly
production rate by one or two for each of the two years after2021.
On 8 April 2020, the Company announced its decision to adapt
commercial aircraft production rates to 40 per month for the A320
Family in response to the new COVID-19 market environment. In
2020, Airbus delivered 431 A320neo Family aircraft. On A320,
production rates were foreseen to gradually increase from 40
aircraft per month currently to 43 in the third quarter and 45 in
the fourth quarter 2021.
In 2021, Airbus delivered 459 A320neo Family aircraft. On
28 October 2021, the Company announced that it is working tosecure the A320 Family programme ramp up and is on trajectory
to achieve a monthly rate of 65 aircraft by summer 2023.
For A320 Family production rates beyond 2023, the Company
is still in the assessment phase and working with suppliers topotentially enable an increase above rate 65.
A330 programme. In 2019, 53 A330 were delivered. Given
overall customer demand for widebody aircraft, Airbus expected
A330 deliveries of approximately 40 aircraft per year beginningin 2020 (prior to the outbreak of COVID-19).
In 2020, 19 A330 were delivered. On 8 April 2020, the Company
announced its decision to reduce commercial aircraft production
rates to around two per month for A330 in response to the new
COVID-19 market environment.
In 2021, 18 A330 were delivered. On 28 October 2021, theCompany announced that the recent commercial success of
the A330 programme enabled a monthly rate increase fromaround two to almost three aircraft at the end of 2022.
A220 programme. In 2019, A220 aircraft deliveries rose to 48
aircraft. Our focus continued to be on cost reduction as well as
growing the backlog to support the ramp-up plan in Mirabel(Canada) and Mobile (US) where we targeted our first delivery
in 2020. Order backlog stood at 495 aircraft as of 31 December
2019.
In 2020, 38 A220 aircraft were delivered. Rates were expected
to increase from four to five aircraft per month from the end of
the first quarter 2021.
In 2021, 50 A220 aircraft were delivered. On 28 October 2021,
the Company announced the A220 production rate, which was
at five aircraft a month, is expected to increase to around rate
six per month in early 2022, with a monthly production rate of
14 envisaged by the middle of the decade.
Defence export ban. Defence export licences to Saudi Arabia
were suspended by the German Government until 31 March 2020.
A revised Estimate at Completion (EAC) for a customer contract
was performed as of 31 December 2020, and the Company
continues to engage with its customer to agree a way forward.
The outcome of these negotiations is presently unclear but could
result in further significant financial impacts. The year-end 2020
assessment remains unchanged as of 31 December 2021.
Going concern and associated liquidity measures.
On 23 March 2020, the Company announced measures
to bolster its liquidity and balance sheet in response to the
COVID-19 pandemic, including a new € 15 billion credit facility

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

partially termed out by bond and USPP issuances whereas theremaining portion matured on 30 September 2021, the withdrawalof 2019 dividend proposal with cash value of € 1.4 billion, thesuspension of voluntary top up pension funding and strong focus
on support to customers and delivery. In parallel, governmental
partners supported the aerospace sector since the beginning of
the crisis either through direct support to airlines and suppliers,or through partial unemployment schemes. With these decisions,the Company had available liquidity to cope with additional
cash requirements, including the amended production rates as
described above. On 21 October 2020, the Company signed a
new € 6 billion Revolving Syndicated Credit Facility also partiallyterming out the € 15 billion credit facility by € 3 billion in order torefinance its existing € 3 billion Revolving Syndicated Facility. Asof 31 December 2020, the Company had a net cash position of€ 4.3 billion with a total liquidity of € 33.6 billion, before deducting
short-term financing liabilities.
As of 31 December 2021, the Company had a net cash positionof € 7.6 billion with a total liquidity of € 28.7 billion, before
deducting short-term financing liabilities. As of 31 December
2021, management considers the Company has sufficient
resources to continue operating for at least 12 months and that
there are no material uncertainties about the Company’s ability tocontinue as a going concern. For further information on liquidity,
see “– 2.1.6 Liquidity and Capital Resources”.
Restructuring provisions. In 2019, a provision of € 103 million
related to restructuring measures at Premium AEROTEC wasrecorded following the announcement in December 2019 to theWorks Council of the main features that would be carried out toincrease future competitiveness.
In June 2020, Airbus announced plans to adapt its global
workforce, principally in France, Germany, Spain and the UK,
and resize its commercial aircraft activity in response to the
COVID-19 crisis. This adaptation was expected to result in a
reduction of around 15,000 positions no later than summer 2021.
Working time adaptation and mitigation measures supportedby the governments have reduced the number of positions
subject to the restructuring plan. Taking into consideration theactual departures since the initial announcement, the remaining
number of positions subject to the restructuring plan amounted
to approximately 6,100 as of 31 December 2020, including preretirement headcount under German Altersteilzeit (“ATZ”). In
addition, Airbus Defence and Space completed the consultation
process with the Company’s European works council on the
Division’s planned restructuring. The plan presented to theemployee representatives initially foresaw the reduction ofaround 1,900 positions including pre-retirement headcountunder ATZ until the end of 2021. However this number was also
subsequently reduced to approximately 1,400 positions reflecting
departures which occurred after the initial announcement. In
November 2020, a reconciliation of Interest Agreement involving
approximately 100 positions was signed in Germany within
Airbus Helicopters and hence, a provision has been recorded
accordingly. As of 30 September 2020, a restructuring provision
was recognised for an amount of € 1.2 billion including mainly thecost of voluntary and compulsory measures taking into accountmanagement’s best estimate of the impact of the working time
adaptation and government support measures. Total payments
to employees affected by the plan were expected to amount
to approximately € 1.5 billion, including the settlement of otheraccrued employee benefits.

As of 31 December 2021 and 31 December 2020, therestructuring provision in response to the COVID-19 pandemic
amounted to € 0.1 billion and € 1.0 billion respectively. It reflects
the utilisation of the restructuring provision for an amount of€ 0.6 billion, the release of € 0.2 billion and € 0.2 billion reclassified
to liabilities to reflect the progress of the plan.

2

Operational assets. As of 31 December 2020, the Company
performed a comprehensive review of its operational assets
and liabilities taking into account the amended production rates
and expected future deliveries. This review resulted in charges
being recorded in 2020 for an amount of € 1.3 billion, including
an impairment of inventories considered at risk of € 355 million,
additional provisions relating to A380 programme of € 279 million,
a write-off of capitalised development costs of € 101 million,
provisions for supplier commitments of € 157 million andprovisions covering various commercial risks of approximately€ 401 million.
As of 31 December 2021, year-to-date financials reflect deliveries
as well as efforts on cost containment and competitiveness.
Furthermore, the Company has performed a comprehensive
review of provisions and depreciations, taking into accountthe amended production rates and expected future deliveries.
Consequently, the Company recorded € 0.6 billion of release of
COVID-related provisions including restructuring in 2021.
Litigation. For information, see “– 1.1.7 Legal and Arbitration
Proceedings” and “Notes to the IFRS Consolidated Financial
Statements – Note 24: Provisions, Contingent Assets andContingent Liabilities”.

2.1.1.4 Current Trends
As the basis for its 2022 guidance, the Company assumes
no further disruptions to the world economy, air traffic, theCompany’s internal operations, and its ability to deliver products
and services. The Company’s 2022 guidance is before M&A.
On that basis, the Company targets to achieve in 2022 around:
720 commercial aircraft deliveries; EBIT Adjusted of € 5.5 billion;
and Free Cash Flow before M&A and Customer Financing of€ 3.5 billion.
This guidance has been prepared on the basis of certain
assumptions, including the principal assumptions as set out
below. The principal assumptions within the Company’s control
are as follows: (a) underlying commercial aircraft deliveries are
based on existing orders. Revenues from other activities arealso based on existing orders and may include estimates basedon relevant market forecasts; (b) no significant interruption in
operational performance or programme execution; (c) no
disruption in or change to the development of products orother development projects; and (d) no material change to theCompany’s existing capital structure.
The principal assumptions outside the Company’s control are
as follows: (a) no material change in general trading conditions,
economic conditions, competitive environment or levels of
demand which would materially affect the Company’s business;(b) the Company’s internal operations do not suffer further
disruptions or from external interruptions; (c) suppliers will meettheir delivery commitments and ensure maturity, availability andin-service performance; (d) no material change in the ability or
willingness of our customers to meet their contractual obligations,
including payment obligations to the Company; (e) no changes

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

in the legislative or regulatory environment which could have amaterial effect on the Company; and (f) no adverse outcome toany material litigation or investigation.

This guidance has been prepared on a basis consistent with theaccounting policies adopted by the Company and is comparablewith the Company’s historical financial information.

2.1.2 Significant Accounting Considerations, Policies and Estimates
The Company’s significant accounting considerations,policies and estimates are described in the Notes to the IFRS
Consolidated Financial Statements. Please refer to the “Notes tothe IFRS Consolidated Financial Statements – Note 3: Significant
Accounting Policies”, “– Note 4: Key Estimates and Judgements”
and “– Note 5: Change in Accounting Policies and Disclosures”.

2.1.2.1 Scope of and Changes
in Consolidation
For further information on the scope of and changes in
consolidation as well as acquisitions and disposals of interests
in business, please refer to the “Notes to the IFRS Consolidated
Financial Statements – Note 7: Scope of Consolidation” and“– Note 8: Acquisitions and Disposals”.

2.1.2.2 Capitalised Development Costs
Pursuant to the application of IAS 38 “Intangible Assets”,
the Company assesses whether product-related development
costs qualify for capitalisation as internally generated intangible
assets. Criteria for capitalisation are strictly applied. All researchand development costs not meeting the IAS 38 criteria are
expensed as incurred in the consolidated income statement.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 3: Significant Accounting Policies – Researchand development expenses” and “– Note 19: Intangible Assets”.

2.1.2.3 Impairment of Long-Life Assets,
Work in Progress and FinishedAircraft
In testing long-life assets such as jigs and tools and capitalised
development costs for impairment, the Company makes
estimates on the number and timing of aircraft units to bedelivered in the future, the margin of these aircraft, and thediscount rate associated with the aircraft programme. For
aircraft that may need to be remarketed, the impairment ofworking progress and finished aircraft is assessed based on an
estimation of the future selling price and associated remarketingcosts.

2.1.2.4 Accounting for Hedged
Foreign Exchange Transactionsin the Financial Statements
In 2021, more than 70% of the Company’s revenues aredenominated in US dollars, with around 60% of such currency
exposure “naturally hedged” by US dollar-denominated costs.

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The remainder of costs are incurred primarily in euros, andto a lesser extent, in pounds sterling. Consequently, to theextent that the Company does not use financial instruments tohedge its net current and future exchange rate exposure fromthe time of a customer order to the time of delivery, its profits
will be affected by market changes in the exchange rate of the
US dollar against these currencies, and to a lesser extent, bymarket changes in the exchange rate of pound sterling against
the euro.
The Company uses hedging strategies to manage and minimise
the impact of exchange rate fluctuations on its profits, including
foreign exchange derivative contracts, interest rate and equity
swaps and other non-derivative financial assets or liabilities
denominated in a foreign currency. As the Company intends
to generate profits only from its operations and not throughspeculation on foreign currency exchange rate movements,
the Company uses hedging strategies solely to mitigate theimpact of exchange rate fluctuations on its EBIT.
For further information on the Company’s hedging strategies
in response to its particular exposures as well as a descriptionof its current hedge portfolio, see “– Risk Factors – 1. Financial
Market Risks – Foreign Currency Exposure” and please referto the “Notes to the IFRS Consolidated Financial Statements –Note 3: Significant Accounting Policies” and “– Note 37: Financial
Instruments”.

2.1.2.5 Foreign Currency Translation
For information on transactions in currencies other than thefunctional currency of the Company and translation differences
for other assets and liabilities of the Company denominatedin foreign currencies, please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 3: Significant
Accounting Policies – Transactions in foreign currency”.

Currency Translation Mismatch
Customer advances (and the corresponding revenues recorded
when sales recognition occurs) are translated at the exchange
rate prevailing on the date they are received (historical rates
of customer advances). US dollar-denominated costs areconverted at the exchange rate prevailing on the date they
are incurred (historical rates of US dollar-denominated costs).
To the extent those historical rates and the amounts received
and paid differ, there is a foreign currency exchange impact(mismatch) on EBIT. Additionally, the magnitude of any suchdifference, and the corresponding impact on EBIT, is sensitive
to variations in the number of deliveries and spot rate (€/US$).

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

2.1.2.6 Accounting for Sales Financing
Transactions in the Financial
Statements
The accounting treatment of sales financing transactions varies
based on the nature of the financing transaction and the resulting
exposure. Please refer to the “Notes to the IFRS Consolidated
Financial Statements – Note 21: Other Investments and Other
Long-Term Financial Assets”, “– Note 24: Provisions, Contingent
Assets and Contingent Liabilities” and “– Note 27: Sales Financing
Transactions”.

2.1.2.7 Provisions for Onerous Contracts
Provisions for onerous contracts are reviewed and reassessed
regularly. However, future changes in the assumptions used by
the Company or a change in the underlying circumstances maylead to a revaluation of past provisions for onerous contracts
and have a corresponding positive or negative effect on
the Company’s future financial performance. Please refer tothe “Notes to the IFRS Consolidated Financial Statements –Note 3: Significant Accounting Policies – Provisions for onerous
contracts” and “– Note 24: Provisions, Contingent Assets andContingent Liabilities”.

2

For further information on the significance of sales financing
transactions for the Company, see “– 2.1.6.4 Sales Financing”.

2.1.3 Performance Measures
2.1.3.1 Business segments
Airbus(In € million)

2021

2020

2019

Revenue

36,16434,25054,775

4,175(1,330)

1,794

11.5%

(3.9%)

3.3%

EBIT(1)
in % of revenue(1)(1) 2019 figures are restated due to new segment presentation.

Airbus Helicopters(In € million)

2021

2020

2019

Revenue

6,509

6,251

6,007

EBIT
in % of revenue

535

455

414

8.2%

7.3%

6.9%

Airbus Defence and Space(In € million)

2021

2020

2019

Revenue

10,186

10,446

10,907

EBIT
in % of revenue

568

408

(881)

5.6%

3.9%

(8.1%)

2.1.3.2 Order Intake and Order Backlog
Year-end order backlog consists of contracts signed up tothat date. Only firm orders are included in calculating the orderbacklog for commercial aircraft and civil helicopters. A firm
order is defined as one for which the Company receives a down
payment on a definitive contract. Defence-related orders areincluded in the backlog upon enforcement of the signed contract.
Commitments under defence “umbrella” or “framework”
agreements by governmental customers are not included inbacklog until the Company is officially notified.

The total order backlog and order intake represent the aggregate
amount of the net transaction price allocated to the unsatisfied
and partially unsatisfied performance obligations to theCompany’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. Contractual
rebates, engine concessions and variable considerations aretaken into account for measurement. Contracts stipulated in acurrency different from the presentation currency are translated

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

to euro using the spot rate as of 31 December 2021, 2020 and
2019, respectively. Adjustments to the value of the order backlog
could result from changes in the transaction price. Options are

not considered in the valuation of order intake and order backlog.
The order backlog will mainly be released into revenue over a
period of seven years.

ORDER INTAKE
2021

2020

(In € billion) (In percentage)(1)2019(In € billion) (In percentage)(1)(In € billion) (In percentage)(1)

Airbus

40.0

64.3%

16.1

48.1%

65.8

80.7%

Airbus Helicopters

8.6

13.7%

5.5

16.4%

7.2

8.8%

Airbus Defence and Space

13.7

22.0%

11.9

35.5%

8.5

10.5%

Subtotal segmental order intake

62.2

100%

33.5

100%

81.5

100%

Eliminations

(0.2)

(0.2)

(0.3)

Total

62.0

33.3

81.2

(1) Before “Eliminations”.

ORDER BACKLOG
31 December
2021

2020

(In € billion) (In percentage)(1)

Airbus

345.1

86.4%

Airbus Helicopters

18.0

Airbus Defence and Space

36.1
399.2

Subtotal segmental order backlog
Eliminations

Total

2019

(In € billion) (In percentage)(1)(In € billion) (In percentage)(1)

324.7

86.8%

424.1

4.5%

15.8

4.2%

16.6

3.5%

9.1%

33.5

9.0%

32.3

6.8%

100%

374.0

100%

473.0

100%

(0.8)

(0.9)

(1.5)

398.4

373.1

471.5

89.7%

(1) Before “Eliminations”.

2021 compared to 2020. The € 25.3 billion increase in orderbacklog to € 398.4 billion (2020: € 373.1 billion), mainly reflected
the strengthening US dollar.
Airbus’ backlog increased by € 20.4 billion to € 345.1 billion. The
book to bill ratio in units was below 1 (calculated using units of
new net orders, i.e. new net orders in units divided by deliveries
in units). Total order backlog at Airbus amounted to 7,082 aircraftat the end of 2021 (as compared to 7,184 aircraft at the endof 2020). Order intake consisted of 507 net orders in 2021 (ascompared to 268 in 2020), comprising 437 net firm orders of
the A320 Family, 38 A220s and 32 widebodies, including thefirst A350 freighter orders.
Airbus Helicopters’ backlog increased by € 2.2 billion to€ 18.0 billion, achieving a book-to-bill ratio well above 1 in terms ofunits and value. Total order backlog amounted to 739 helicoptersat the end of 2021 (as compared to 663 helicopters at the endof 2020). Airbus Helicopters received 414 net orders in 2021 (ascompared to 268 in 2020), including 52 H160s, of which 30 were
the first batch of H160M military versions for France’s Joint Light
Helicopter programme.
Airbus Defence and Space’s backlog increased by € 2.6 billion
to € 36.1 billion and the book-to-bill ratio in value amounted to
1.3 with new net orders of € 13.7 billion, including key orders in
the Military Aircraft business such as the contracts for the in-

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service support of the German and Spanish Eurofighter fleetsas well as export contracts for the C295 (India), A330 MRTT
(United Arab Emirates and Spain) and A400M airlifter (Republicof Kazakhstan).
2020 compared to 2019. The € -98.4 billion decrease in orderbacklog to € 373.1 billion (2019: € 471.5 billion), reflected higher
number of deliveries compared to order intake, the weakeningof the US dollar and an assessment of the order backlog’s
recoverability.
Airbus’ backlog decreased by € -99.4 billion to € 324.7 billion.
The book to bill ratio in units was below one (calculated using
units of new net orders, i.e. new net orders in units divided bydeliveries in units). Total order backlog at Airbus amounted to
7,184 aircraft at the end of 2020 (as compared to 7,482 aircraftat the end of 2019). Order intake consisted of 268 net orders
in 2020 (as compared to 768 in 2019), including mainly 263 net
firm orders of the A320 Family and 30 A220s.
Airbus Helicopters’ backlog decreased by € -0.8 billion to€ 15.8 billion and the book-to-bill ratio amounted to 0.9 in termsof value, including 31 NH90s for the German Bundeswehrand 11 H160s. Airbus Helicopters received 268 net orders
in 2020 (as compared to 310 in 2019). Total order backlog
amounted to 663 helicopters at the end of 2020 (as comparedto 695 helicopters at the end of 2019).

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

contract wins in Military Aircraft, including a contract to deliver
38 new Eurofighters for the German Air Force.

Airbus Defence and Space’s backlog increased by € 1.2 billion
to € 33.5 billion and the book-to-bill ratio in value amounted to
1.1 with new net orders of € 11.9 billion, mainly driven by major

The following table illustrates the proportion of civil and defence backlog at the end of each of the past three years.

2

31 December
2021

2020

2019

(In € billion)(In percentage)(1)(In € billion)(In percentage)(1)(In € billion)(In percentage)(1)

355.3

89%

334.5

90%

433.4

92%

Civil sector
Defence sector

Total

43.1

11%

38.6

10%

38.1

8%

398.4

100%

373.1

100%

471.5

100%

(1) Including “Eliminations”.

2.1.3.3 EBIT Adjusted
The Company uses an alternative performance measure EBIT Adjusted as a key indicator capturing the underlying businessmargin by excluding material charges or profits caused by movements in provisions related to programmes, restructurings or foreignexchange impacts as well as capital gains/losses from the disposal and acquisition of businesses.
The following table reconciles the Company’s EBIT with its EBIT Adjusted.
(In € million)

2021

2020

2019

EBIT

5,342

(510)

1,339

38

480

170

A380 programme

(274)

385

202

A400M charge

212

63

1,212

0

0

3,598
206

PDP mismatch / BS revaluation

Penalties
Compliance costs
Non-current assets disposal(1)
M&A impact(2)Defence export ban

65

87

(122)

0

0

0

2

(111)

0

0

221

Restructuring provision(3)

(163)

1,199

103

Payments by suppliers

(234)

0

0

OthersEBIT Adjusted

1

0

6

4,865

1,706

6,946

(1) Including gain from divestment of one of its sites in France to a 50% joint venture.
(2) Including net capital gains from PFW Aerospace GmbH (€ -57 million) and Alestis Aerospace SL (€ -45 million) in 2019.
(3) Including workforce adaptation release in 2021 (€ -0.2 billion), initially recognised in 2020 (€ 1.2 billion).

2.1.3.4 EBIT Adjusted by Business segment(In € million)

2021

2020

2019

Airbus

5,947

3,570

618

Airbus Helicopters

535

471

422

Airbus Defence and Space

696

660

565

4,801

1,749

6,934

64

(43)

12

4,865

1,706

6,946

(1)

Subtotal segmental EBIT Adjusted(1)Eliminations(1)Total(1) 2019 figures are restated due to new segment presentation.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

2.1.3.5 EBIT by Business Segment(In € million)

2021

2020

2019

Airbus(1)4,175(1,330)1,794

Airbus Helicopters

535

455

414

Airbus Defence and Space

568

408

(881)

Subtotal segmental EBIT(1)

5,278

(467)

1,327

64

(43)

12

5,342

(510)

1,339

Eliminations(1)Total(1) 2019 figures are restated due to new segment presentation.

2021 compared to 2020. The Company’s consolidated EBIT
increased from € -0.5 billion for 2020 to € 5.3 billion for 2021,
mainly driven by Airbus.

expenses reflecting the end of the European Union Aviation
Safety Agency (“EASA”) certification process for the five-bladed
H145 and the H160.

Airbus’ EBIT increased from € -1.3 billion for 2020 to € 4.2 billion
for 2021.This mainly reflects the higher commercial aircraft
deliveries, effort on cost containment and competitiveness aswell as the release of COVID-related provisions in 2021 comparedto the recording of charges triggered by the COVID-19 pandemic
in 2020, including restructuring provision.

Airbus Defence and Space’s EBIT increased from € -881 million
for 2019 to € 408 million for 2020, mainly due to lower A400M
programme charge in 2020 as well as the effect of costs
containment measures and lower research and development
costs, partially offset by the impact of COVID-19 pandemic,
including on the launcher business.

Airbus Helicopters’ EBIT increased from € 455 million for 2020to € 535 million for 2021, mainly driven by support and services,
programme execution and cost focus.

Foreign currency impact on EBIT. In 2021, more than 70%of the Company’s revenues are denominated in US dollars,
whereas a substantial portion of its costs is incurred in euros
and to a lesser extent, pounds sterling. Given the long-term
nature of its business cycles (evidenced by its multi-yearbacklog), the Company hedges a significant portion of its net
foreign exchange exposure to mitigate the impact of exchange
rate fluctuations on its EBIT. Please refer to the “Notes to the
IFRS Consolidated Financial Statements – Note 37: Financial
Instruments” and see “– Risk Factors – 1. Financial Market Risks– Foreign Currency Exposure” and “– 2.1.2.5 Foreign Currency
Translation”. In addition to the impact that hedging activities haveon the Company’s EBIT, the latter is also affected by the impactof revaluation of certain assets and liabilities at the closing rate
and the impact of natural hedging.

Airbus Defence and Space’s EBIT increased from € 408 million
for 2020 to € 568 million for 2021, reflecting continued cost
containment. Additionally, it includes the gain recognised forthe sale of one of its sites in France to a 50% joint venture of€ 122 million and higher A400M programme charge.
2020 compared to 2019. The Company’s consolidated EBIT
decreased from € 1.3 billion for 2019 to € -0.5 billion for 2020.
This includes the impacts of the ongoing COVID-19 pandemic
and the € 1.2 billion restructuring provision recognised in the third
quarter of 2020 (see “– 2.1 Operating and Financial Review”).
Airbus’ EBIT decreased from € 1.8 billion for 2019 to € -1.3 billion
for 2020, also reflecting the impacts of the ongoing COVID-19
pandemic including lower deliveries, the charges recognised asa result of the comprehensive review of the operational assets
and liabilities taking into account the amended production rates
and expected future deliveries and the restructuring provision
recorded related to the COVID-19 pandemic. In 2019, it included
the recognition of penalties for agreements with authorities of€ 3.6 billion.
Airbus Helicopters’ EBIT increased from € 414 million for 2019to € 455 million for 2020, reflecting favourable product mix,
strong governmental-related activities and reliable programme
execution. It also includes lower research and development

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Airbus / Registration Document 2021

During 2021, Cash Flow hedges covering approximately
US$ 20.9 billion of the Company’s US dollar-denominated net
exposure matured.
In 2021, the compounded exchange rate at which hedged
US dollar-denominated revenues were accounted for was €/US$ 1.20, as compared to €/US$ 1.19 in 2020.
During 2020, Cash Flow hedges covering approximately
US$ 17.1 billion of the Company’s US dollar-denominated net
exposure matured. In 2020, the compounded exchange rate at
which hedged US dollar-denominated revenues were accounted
for was €/US$ 1.19, as compared to €/US$ 1.24 in 2019.

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

2.1.4 Results of Operations
The following table summarises the IFRS Company’s Consolidated Income Statements for the past three years:(In € million)

2021

2020

2019

Revenue

52,14949,91270,478

Cost of sales(42,518)(44,250)(59,973)

Gross margin

9,631

5,662

10,505

Selling and administrative expenses(2,052)(2,140)(6,125)

Research and development expenses(2,746)(2,858)(3,358)Other income

594

132

370

Other expenses(201)(1,458)(356)

Share of profit from investments accounted for under the equity
method and other income from investments

116

152

303

Profit (Loss) before financial result and income taxes

5,342

(510)

1,339

Interest result

(246)

(271)

(111)

Other financial result

(69)

(349)

(164)

Income taxes

(853)

(39)

(2,389)Profit (Loss) for the period

4,174(1,169)(1,325)

4,213(1,133)(1,362)

(39)

(36)

37

2

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

€

€

€

Basic

5.36

(1.45)(1.75)

Diluted

5.36(1.45)(1.75)

2.1.4.1 Revenues
The following table presents a breakdown of the Company’s revenues by Business segment for the past three years:(In € million)

2021

2020

2019

Airbus36,16434,25054,775

Airbus Helicopters

6,509

6,251

6,007

Airbus Defence and Space

10,186

10,446

10,907

Subtotal segmental revenue

52,85950,947

71,689(710)(1,035)(1,211)

52,14949,91270,478Eliminations

Total

Revenues increased by 4.5%, from € 49.9 billion for 2020 to€ 52.1 billion for 2021. The increase is mainly driven by Airbus,
reflecting higher aircraft deliveries partly offset by an unfavourable
foreign exchange impact.

For 2020, revenues decreased by 29.2%, from € 70.5 billion for2019 to € 49.9 billion for 2020, reflecting mainly lower commercial
aircraft deliveries at Airbus.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

Revenue by Geographical Areas
2021

2020

(In € billion) (In percentage)

Asia/Pacific

16.0

(1)

2019

(In € billion) (In percentage)(1)(In € billion) (In percentage)(1)

30.6%

13.1

26.3%

22.6

32.1%

Europe

19.5

37.4%

20.3

40.7%

22.6

32.1%

North America

10.5

20.2%

8.7

17.4%

12.0

17.1%

Other countries

(2)

Total

6.1

11.8%

7.8

15.6%

13.3

18.8%

52.1

100%

49.9

100%

70.5

100%

(1) Percentage of total revenue after eliminations.
(2) Including the Middle East.

Airbus
The following table presents a breakdown of deliveries of commercial aircraft by product type for the past three years.
2021

2020

A220

50

38

48

A320 Family

483

446

642

(In units)

2019

A330

18

19

53

A350 XWB

55

59

112

A380

5

4

8

Total

611

566

863

Airbus’ revenues increased by 5.6%, from € 34.3 billion for2020 to € 36.2 billion for 2021. This reflected higher deliveriesof 611 aircraft (compared to 566 deliveries in 2020), partly offset
by an unfavourable foreign exchange impact.

For 2020, Airbus’ revenues decreased by 37.5%, from€ 54.8 billion for 2019 to € 34.3 billion for 2020. This was due tolower deliveries of 566 aircraft (compared to 863 deliveries in2019), including 59 A350 XWBs and 38 A220s, in line with the
production adaptation plan set out in April 2020 in response to the
COVID-19 pandemic, see “– 2.1 Operating and Financial Review”.

Airbus Helicopters
The following table presents a breakdown of deliveries of helicopters by product type for the past three years.
2021

2020

2019

Light

159

123

159

Medium

121

126

122

Heavy

58

50

47

27

28

32

Tiger

0

1

4

Total

338

300

332

(In units)

thereof NH90

Airbus Helicopters’ revenues amounted to € 6.5 billion in 2021
(2020: € 6.3 billion). This increase reflected growth in services
and higher deliveries of 338 units (2020: 300 units), including
the first H160.

140

Airbus / Registration Document 2021

For 2020, Airbus Helicopters’ revenues amounted to € 6.3 billion
in 2020 (2019: € 6.0 billion). This increase reflected a favourable
product mix effect despite lower deliveries of 300 units (2019:332 units) and higher volume in services.

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

Airbus Defence and Space
The following table presents a breakdown of deliveries of Airbus Defence and Space by product type for the past three years.
(In units)

2021

2020

2019

A400M

8

9

14

A330 MRTT (Tanker)

5

4

7

Light & Medium aircraft

9

10

8

Telecom satellites

3

1

2

Total

25

24

31

Airbus Defence and Space’s revenues amounted to € 10.2 billion
in 2021 (2020: € 10.4 billion). The decrease is mainly driven by
Military Aircraft, partially offset by Space Systems.

the COVID-19 pandemic. In addition, an amount of € 101 million
of development costs has been capitalised, mainly linked to
Airbus programmes.

For 2020, Airbus Defence and Space’s revenues amounted to€ 10.4 billion in 2020 (2019: € 10.9 billion). The decrease wasdue to lower volume and the impact of the COVID-19 pandemic
on business phasing. It also reflected the lower order intake inSpace Systems in the prior years.

2.1.4.5 Other Income
and Other Expenses

2.1.4.2 Cost of Sales

Other income and other expenses typically include gains andlosses on disposals of investments, of fixed assets and income
from rental properties.

Cost of sales decreased by 3.9% from € 44.3 billion for 2020 to€ 42.5 billion for 2021. It mainly reflects in 2021 continued cost
containment and the release of COVID-related provisions while2020 was impacted by charges recorded in response to the
COVID-19 pandemic.

Other income and other expenses was € 393 million net ascompared to € -1,326 million net for 2020. The increase includes
the gain of € 122 million for the divestment of one of its sites inFrance to a 50% joint venture. In 2020, it included the COVIDrelated restructuring provision, see “–2.1 Operating and Financial
Review”.

For 2020, cost of sales decreased by 26.2% from € 60.0 billion
for 2019 to € 44.3 billion for 2020. This was driven by lower
deliveries, also impacted by charges recorded as a result of
the comprehensive review performed by the Company of its
operational assets and liabilities in response to the COVID-19
pandemic, see “–2.1 Operating and Financial Review”.

For 2020, other income and other expenses was € -1,326 million
net as compared to € 14 million net for 2019. The decreaseis driven by the restructuring provision recorded in 2020 in
response to the COVID-19 pandemic, see “–2.1 Operating and
Financial Review”.

2.1.4.3 Selling and Administrative
Expenses
Selling and administrative expenses remained stable at€ 2.1 billion for both 2021 and 2020.
For 2020, selling and administrative expenses decreased from€ 6.1 billion for 2019 to € 2.1 billion for 2020. The decrease wasmainly due to the € 3.6 billion penalties recognised in 2019, asa consequence of the final agreements reached with the French
PNF, the UK SFO and the US DoS.

2.1.4.4 Research and Development
Expenses
Research and development expenses decreased by 3.9%,
from € 2.9 billion for 2020 to € 2.7 billion for 2021. In addition,
an amount of € 152 million of development costs has been
capitalised, mainly linked to Defence and Space programmes.
See “– 2.1.2.2 Capitalised Development Costs”.
For 2020, research and development expenses decreasedby 14.9%, from € 3.4 billion for 2019 to € 2.9 billion for 2020,
mainly reflecting cash containment measures in response to2

2.1.4.6 Share of Profit from Investments
Accounted for under the Equity
Method and Other Income
from Investments
Share of profit from investments accounted for under the equity
method and other income from investments principally include
results from companies accounted for under the equity method
and the dividends attributable to unconsolidated investments.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 9: Investments Accounted for under the
Equity Method” and “– Note 15: Share of Profit from Investments
Accounted for under the Equity Method and Other Income from
Investments”.
The Company recorded € 116 million in share of profit frominvestments accounted for under the equity method and otherincome from investments as compared to € 152 million for 2020.
For 2020, the Company recorded € 152 million in share of profit
from investments accounted for under the equity method andother income from investments as compared to € 303 million
for 2019.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

2.1.4.7 Interest Result

2.1.4.9 Income Taxes

Interest result reflects the net of interest income and expense
arising from financial assets and liabilities, including the interest
expense on refundable advances provided by European
governments to finance R&D activities. Please refer to the “Notes
to the IFRS Consolidated Financial Statements – Note 16: Total
Financial Result”.

Income tax expense was € -853 million as compared to€ -39 million for 2020, and corresponds to an effective income
tax rate of 17%. The higher tax expense was mainly driven by the
income before tax in 2021 of € 5,027 million as compared to theloss before tax in 2020 of € -1,130 million, partly compensatedby a net release of deferred tax asset impairments mainly due toan updated business outlook in 2021 in comparison to deferred
tax impairments in 2020. Management will continue to assess its
tax contingencies going forward, whose outcome could resultin further financial impacts.

The Company recorded a net interest expense of € -246 million,
as compared to € -271 million for 2020.
For 2020, the Company recorded a net interest expense of€ -271 million, as compared to € -111 million for 2019. This wasprincipally due to lower level of securities and higher financing
liabilities due to the issuance of new bonds.

2.1.4.8 Other Financial Result
Other financial result includes the impact from the revaluationof financial instruments, the effect of foreign exchange valuationof monetary items and the unwinding of discounted provisions.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 16: Total Financial Result” and “– Note 25:
Other Financial Assets and Other Financial Liabilities”.
Other financial result changed from € -349 million for 2020 to€ -69 million for 2021. This is driven by the positive impact fromthe revaluation of certain equity investments, compensated bya negative impact from the revaluation of financial instruments.
In 2020, it included the European governments’ refundable
advances impact related to the A350 XWB programme.
For 2020, other financial result decreased from € -164 million for2019 to € -349 million for 2020. This reflects the € -155 million
European governments’ refundable advances impact mainly
related to the A350 XWB programme and the net € -147 million
related to Dassault Aviation financial instruments. The change
in other financial result also includes a positive impact from therevaluation of financial instruments of € +43 million and foreignexchange valuation of monetary items of € +41 million.

For 2020, income tax expense was € -39 million as comparedto € -2,389 million for 2019. The decrease was mainly driven
by the loss before tax in 2020 (€ -1,130 million) as compared tothe income before tax in 2019 (€ 1,064 million), and the nondeductibility of the penalties accounted for in the 2019 accounts
next to more favourable impacts on tax risk updates.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 17: Income Taxes”.

2.1.4.10 Non-Controlling Interests
For 2021, loss for the period attributable to non-controllinginterests was € -39 million, as compared to loss of € -36 million
for 2020.

2.1.4.11 Profit for the Period Attributable
to Equity Owners of the Parent(Net Income)As a result of the factors discussed above, the Company
recorded a net income of € 4,213 million for 2021, as comparedto the net loss of € -1,133 million for 2020.

2.1.4.12 Earnings per Share
Basic earnings were € 5.36 per share in 2021, as compared to € -1.45 per share in 2020. The denominator used to calculate earnings
per share was 785,326,074 shares (2020: 783,178,191), reflecting the weighted average number of shares outstanding during theyear. In 2019, the Company reported basic earnings of € -1.75 per share, based on a denominator of 777,039,858 shares.

Profit (Loss) for the period attributable to equity owners of theparent (Net income)Weighted average number of ordinary shares

Basic earnings per share

142

Airbus / Registration Document 2021

2021

2020

2019

€ 4,213 million€ (1,133) million€ (1,362) million

785,326,074

783,178,191

777,039,858€ 5.36€ (1.45)€ (1.75)

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

Diluted earnings were € 5.36 per share in 2021, as compared to € -1.45 per share in 2020. The denominator used to calculate
diluted earnings per share was 785,902,000 (2020: 783,178,191). As there was a net loss in 2020 and 2019, the effect of potentiallydilutive ordinary shares is anti-dilutive. In 2019, the Company reported diluted earnings of € -1.75 per share, based on a denominatorof 777,039,858 shares, reflecting the weighted average number of shares outstanding during the year, adjusted to assume theconversion of all potential ordinary shares.
2021

2020

2019

Profit (Loss) for the period attributable to equity owners of the parent(Net income), adjusted for diluted calculation€ 4,213 million€ (1,133) million€ (1,362) million

Weighted average number of ordinary shares (diluted)(1)

785,902,000

783,178,191

777,039,858€ 5.36€ (1.45)€ (1.75)

Diluted earnings per share2(1) In 2021, dilution assumes conversion of all potential ordinary shares.

For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 18: Earnings per Share”.

2.1.5 Changes in Total Equity (Including Non-Controlling Interests)
The following table sets forth a summary of the changes in total equity for the period 1 January 2021 through 31 December 2021.
(In € million)

Balance at 1 January 2021

6,456

Profit for the period

4,174

Other comprehensive income(1,327)

thereof foreign currency translation adjustments

197

Capital increase

115

Equity transactions (IAS 27)

10

Share-based payment (IFRS 2)

61

Change in treasury shares(3)

Balance at 31 December 2021

9,486

The number of shares issued as of 31 December 2021 was 786,083,690. Please refer to the “Airbus SE IFRS Consolidated Financial
Statements – IFRS Consolidated Statements of Changes in Equity for the years ended 31 December 2021 and 2020” and to the“Notes to the IFRS Consolidated Financial Statements – Note 34: Total Equity”.

2.1.5.1 Cash Flow Hedge Related Impact on AOCI
As of 31 December 2021, the notional amount of the Company’s
portfolio of outstanding Cash Flow hedges amounted to
US$ 88.3 billion, hedged against the euro and the pound sterling.
The year-end mark to market valuation of this portfolio resulted
in a negative pre-tax accumulated other comprehensive income(“AOCI”) valuation change of € -5.1 billion as of 31 December
2021 compared to 31 December 2020, based on a closing rateof €/US$ 1.13 as compared to a positive pre-tax AOCI valuation
change of € 3.7 billion as of 31 December 2020 compared to
31 December 2019, based on a closing rate of €/US$ 1.23.
For further information on the measurement of the fair valuesof financial instruments, please refer to the “Notes to the
IFRS Consolidated Financial Statements – Note 37: Financial
Instruments”.

Positive pre-tax mark to market values of Cash Flow hedges
are included in other financial assets, while negative pre-tax
mark to market values of Cash Flow hedges are included inother financial liabilities. Year-to-year changes in the mark tomarket value of effective Cash Flow hedges are recognised as
adjustments to AOCI. These adjustments to AOCI are net ofcorresponding changes to deferred tax assets (for Cash Flowhedges with negative mark to market valuations) and deferred
tax liabilities (for Cash Flow hedges with positive mark to market
valuations).

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143

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

The following graphic presents the Cash Flow hedge related movements in AOCI over the past three years. The mark to market ofthe backlog is not reflected in the accounts whereas the mark to market of the hedge book is reflected in AOCI.
CASH FLOW HEDGE RELATED MOVEMENTS IN AOCI IN € MILLION (BASED ON YEAR-END EXCHANGE RATES)(1)-3,360OCI Net Asset

341-4,779830

Net Deferred Taxes

-86
1,323
-2,530Net Equity OCI

255-3,45631 December 2019: US$ 1.12

31 December 2020: US$ 1.23

31 December 2021: US$ 1.13

(1) Cash Flow hedge in AOCI in total equity (including non-controlling interests).

As a result of the negative change in the fair market valuation of the Cash Flow hedge portfolio in 2021, AOCI amounted to a net
liability of € -4.8 billion for 2021, as compared to a net asset of € +0.3 billion for 2020. The corresponding € +1.4 billion tax effectled to a net deferred tax asset of € 1.3 billion as of 31 December 2021 as compared to a net deferred tax liability of € -0.1 billion
as of 31 December 2020.
For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 37.5: Financial Instruments– Derivative Financial Instruments and Hedge Accounting Disclosure”.

2.1.5.2 Foreign Currency Translation Adjustment Impact on AOCIThe € 197 million currency translation adjustment related impact on AOCI in 2021 mainly reflects the effect of the variations of the
US dollar and the pound sterling.

2.1.6 Liquidity and Capital Resources
The Company’s objective is to generate sufficient operating
Cash Flow in order to invest in its growth and future expansion,
honour the Company’s dividend policy and maintain financial
flexibility while retaining its credit rating and competitive accessto capital markets.
The Company defines its consolidated net cash position as thesum of (i) cash and cash equivalents and (ii) securities, minus(iii) financing liabilities (all as recorded in the Consolidated
Statements of Financial Position). Net cash position is analternative performance measure and an indicator that allows
the Company to measure its ability to generate sufficient liquidity
to invest in its growth and future expansion, honour its dividend
policy and maintain financial flexibility. The net cash position
as of 31 December 2021 was € 7.6 billion (€ 4.3 billion as of
31 December 2020).

144

Airbus / Registration Document 2021

As of 31 December 2021, the total liquidity amounted to€ 28.7 billion and it was secured by the € 22.7 billion gross cash
and the € 6 billion revolving syndicated credit facility, the maturityof which has been extended to 21 October 2024. The Company
can raise further liquidity through its € 12 billion Euro Medium
Term Note programme (of which € 9 billion have already been
issued), its € 11 billion Negotiable European Commercial Paper
programme, its € 4 billion Euro Commercial Paper programme
and its $ 3 billion US commercial paper programme. See“– Risk Factors – 1. Financial Market Risks – Liquidity” and“– 2.1.6.3 Financing Liabilities”. Please also refer to the “Notes
to the IFRS Consolidated Financial Statements – Note 36:
Net Cash” and “– Note 37.1: Financial Instruments – Financial
Risk Management”. The factors affecting the Company’s cash
position, and consequently its liquidity risk, are discussed below.
For information on Airbus SE’s credit ratings, please refer to the“Notes to the IFRS Consolidated Financial Statements – Note 35:
Capital Management”.

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

2.1.6.1 Cash Flows
The Company generally finances its manufacturing activities and product development programmes, and in particular the developmentof new commercial aircraft, through a combination of flows generated by operating activities, customer advances, risk-sharing
partnerships with subcontractors and European governments’ refundable advances. In addition, the Company’s military activities
benefit from government-financed research and development contracts. If necessary, the Company may raise funds in the capital
markets.

2

The following table sets forth the variation of the Company’s consolidated net cash position over the periods indicated.
(In € million)

2021

2020

2019

Net Cash position at 1 January

4,312

12,534

13,281

Initial application impact of IFRS 1600(1,352)Gross Cash Flow from operations(1)

4,078

3,061

3,391

984

(8,197)

2,176(1,551)(2,226)(2,092)(1,928)(1,759)(2,340)3,475Changes in other operating assets and liabilities (working capital)(2)Cash used for investing activities(3)thereof industrial capital expenditures

3,511(7,362)

thereof M&A transactions

(32)

(551)

(92)

Free Cash Flow before M&A(5)

3,543(6,811)

3,567

Free Cash Flow

(4)

28

124

58

Free Cash Flow before customer financing

thereof Cash Flow from customer financing (net)

3,483(7,486)

3,417

Free Cash Flow before M&A and customer financing

3,515(6,935)

3,509

0

0

(1,280)Contribution to plan assets of pension schemes(6)Cash distribution to shareholders / non-controlling interests

(533)

(314)

(1,752)

Changes in capital and non-controlling interests

138

89

194

Change in treasury shares / share buyback

(22)

(4)

(31)

Others

237

(631)

(1)

7,643

4,312

12,534

Net Cash position at 31 December(1) Represents cash provided by operating activities, excluding (i) changes in other operating assets and liabilities (working capital), (ii) contribution to plan assets of pension schemesand (iii) realised foreign exchange results on treasury swaps (€ 27 million in 2021, € 70 million in 2020, € 102 million in 2019). It is an alternative performance measure and an indicatorused to measure its operating cash performance before changes in other operating assets and liabilities (working capital).
(2) Including customer financing, excluding some perimeter change impacts from changes in consolidation.
(3) Does not reflect change in securities (net investment of € -1,186 million in 2021, net disposal of € 6,303 millio in 2020, net investment of € -397 million in 2019), which are classified
as cash and not as investments solely for the purposes of this net cash presentation. Excluding bank activities.
(4) Does not reflect change of securities, change in cash from changes in consolidation, contribution to plan assets of pension schemes and realised foreign exchange results ontreasury swaps. Excluding bank activities. Free Cash Flow is an alternative performance measure and indicator that reflects the amount of Cash Flow generated from operations
after cash used in investing activities.
(5) Free Cash Flow before M&A refers to Free Cash Flow adjusted for net proceeds from disposals and acquisitions. It is an alternative performance measure and indicator that reflects
Free Cash Flow excluding those Cash Flows from the disposal and acquisition of businesses.
(6) In 2020, thereof € 331 million contributions for retirement and deferred compensation plans.

The net cash position as of 31 December 2021 was € 7.6 billion,
a 77.2% increase from 31 December 2020. Please see further
details below.

Gross Cash Flow from Operations
Gross Cash Flow from operations is an alternative performancemeasure and an indicator used by the Company to measure its
operating cash performance before changes in working capital.
Gross Cash Flow from operations increased to € 4.1 billion for
2021, which mainly reflects higher EBIT Adjusted and includes a€ 0.6 billion provision consumption related to the restructuring plan.

Changes in Other Operating Assets
and Liabilities (Working Capital)
Changes in other operating assets and liabilities (working capital),comprises inventories, trade receivables, contract assets andcontract liabilities (including customer advances), trade liabilities,
and other assets and other liabilities. They resulted in a positive
working capital variation of € 1.0 billion for 2021, versus a negative
impact of € -8.2 billion for 2020.
In 2021, the contributors to the positive working capitalvariation from 2020 to 2021 were the change in trade liabilities(€ +5.7 billion), which reflected the production adaptation planset out in April 2020 in response to the COVID-19 pandemic,
the change in other assets and liabilities (€ +4.5 billion), mainly
due to the negative impact of the payment of penalties in 2020,
and the change in inventories (€ +2.3 billion), which reflected

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145

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

the reduction in inventory in 2021, with the deliveries of the last
A380 aircraft and the reduction in the inventory of widebody
aircraft. This was partially offset by the change in contract assets
and contract liabilities (€ -3.2 billion).
European governments’ refundable advances. As of
31 December 2021, total European governments’ refundable
advances liabilities, recorded on the statement of Financial
Position in the line items “non-current other financial liabilities”
and “current other financial liabilities” due to their specific nature,amounted to € 3.9 billion, including accrued interest.
European governments’ refundable advances (net ofreimbursements) remained stable in 2021 as compared to 2020.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 25: Other Financial Assets and Other Financial
Liabilities”.

Cash Used for Investing Activities
Management categorises cash used for investing activities into
three components: (i) industrial capital expenditure, (ii) M&A
transactions and (iii) others. Cash used for investing activities
amounted to € -1.6 billion for 2021, to € -2.2 billion for 2020, andto € -2.1 billion for 2019.
Capital expenditure. Capital expenditure includes productrelated development costs that are capitalised in accordancewith IAS 38. See “– 2.1.2.2 Capitalised development costs”.
Capital expenditure (investments in property, plant andequipment and intangible assets) amounted to € -1.9 billion for
2021, € -1.8 billion for 2020 and € -2.3 billion for 2019.
In 2020, the decrease of capital expenditure reflected theprioritisation of projects.
M&A transactions. In 2021, there were no significant M&A
transactions.
In 2020, the € -0.6 billion figure mostly relates to the acquisitionof Bombardier’s additional 29.64% shares in Airbus Canada.

Free Cash Flow before mergers and acquisitions refers toFree Cash Flow adjusted for net proceeds from disposals andacquisitions. It is an alternative performance measure and key
indicator that reflects Free Cash Flow excluding those Cash
Flows resulting from acquisitions and disposals of businesses.

Free Cash Flow before M&A and Customer
Financing
Free Cash Flow before M&A and customer financing refers
to Free Cash Flow before mergers and acquisitions adjusted
for Cash Flow related to aircraft financing activities. It is analternative performance measure and indicator that may be
used occasionally by the Company in its financial guidance,
especially when there is higher uncertainty around customer
financing activities.

Cash Distribution to Shareholders /Non‑Controlling Interests
For the fiscal year 2021, the Company’s Board of Directors
proposes a cash distribution to shareholders of € 1.50 per share.
Given the global business environment, there was no cash
distribution to shareholders proposed for the fiscal year 2020.
This decision aimed at strengthening the Company’s financial
resilience by protecting the net cash position and supporting its
ability to adapt as the situation evolved.
On 23 March 2020, the Company decided to withdraw the€ -1.3 billion cash distribution to shareholders initially proposed
for the fiscal year 2019, in response to the COVID-19 pandemic.
Consequently, there was no cash distribution to shareholders
in 2020.

Contribution to Plan Assets of Pension Schemes

Other disposals. In 2021, the Company divested to a 50%
joint venture one of its sites in France. The Company received
a consideration of € 310 million.

The cash outflows of € -0.5 billion, € -0.3 billion and € -1.8 billion
in 2021, 2020 and 2019, respectively, primarily relate tocontributions to the Contractual Trust Arrangement (“CTA”) in
Germany for allocating and generating pension plan assets inaccordance with IAS 19, as well as to pension schemes and plan
assets in the UK, Canada and to French benefit funds. Pleaserefer to the “Notes to the IFRS Consolidated Financial Statements– Note 31: Post-Employment Benefits”.

Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 8: Acquisitions and Disposals”.

Change in Treasury Shares / Share Buyback

Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 8: Acquisitions and Disposals”.

Free Cash Flow
The Company defines Free Cash Flow as the sum of (i) cash
provided by operating activities and (ii) cash used for investing
activities, minus (iii) change of securities, (iv) contribution toplan assets of pension schemes, (v) realised foreign exchange
results on treasury swaps and (vi) Airbus Bank activities. It isan alternative performance measure and key indicator thatis important in order to measure the amount of Cash Flowgenerated from operations after cash used in investing activities.
As a result of the factors discussed above, Free Cash Flowamounted to € 3.5 billion for 2021 as compared to € -7.4 billion
for 2020 and € 3.5 billion for 2019.

146

Free Cash Flow before M&A

Airbus / Registration Document 2021

Change in treasury shares amounted to € -22 million for 2021,
to € -4 million for 2020 and to € -31 million for 2019. As of
31 December 2021 and 2020, the Company held 454,735 and432,875 treasury shares, respectively.

2.1.6.2 Cash and Cash Equivalents
and Securities
The cash and cash equivalents and securities portfolio of
the Company is invested mainly in non-speculative financial
instruments, mostly highly liquid, such as certificates of deposit,
overnight deposits, commercial papers, other money market
instruments and bonds. Please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 37.1: Financial
Instruments – Financial Risk Management”.

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.1 Operating and Financial Review

The Company has a partially automated cross-border anddomestic cash pooling system in all countries with majorgroup presence and whenever country regulations allow suchpractice (among others, this includes mainly France, Germany,
Spain, the Netherlands, the UK and the US). The cash poolingsystem enhances management’s ability to assess reliably andinstantaneously the cash position of each subsidiary within
the Company and enables management to allocate cash
optimally within the Company depending upon shifting shortterm needs.

2

2.1.6.3 Financing Liabilities
The outstanding balance of the Company’s consolidated financing
liabilities decreased from € 17.1 billion as of 31 December 2020to € 15.0 billion as of 31 December 2021. The decrease is dueto the pre-payment of a US$1 billion bond issued on 9 April
2013 in the US institutional market with an original maturity often years and the repayment of € 1.0 billion exchangeable bonds
to be convertible into Dassault Aviation shares issued on 14 June
2016. For further information, please refer to the “Notes to the
IFRS Consolidated Financial Statements – Note 36.3: Net Cash
– Financing Liabilities”.

2.1.6.4 Sales Financing
The Company favours cash sales and encourages independent
financing by customers, in order to avoid retaining credit orasset risk in relation to delivered products. However, in orderto support product sales, primarily at Airbus and Airbus
Helicopters, the Company may agree to participate in thefinancing of customers, on a case-by-case basis, directly or
through guarantees provided to third parties.
The financial markets remain unpredictable, which may cause
the Company to increase its future outlays in connection withcustomer financing of commercial aircraft and helicopters,
mostly through finance leases and secured loans and if deemednecessary through operating lease structures. Nevertheless,
the Company intends to keep the amount as low as possible.
Dedicated and experienced teams structure such financing
transactions and closely monitor total finance and asset value
exposure of the Company and its evolution in terms of quality,
volume and intensity of cash requirements. The Company
aims to structure all financing it provides to customers in linewith market-standard contractual terms so as to facilitate any
subsequent sale or reduction of such exposure.

Evolution of Airbus Gross Exposure during 2021 in US$ million

524

31 December 2020

339

Additions

Disposals

Amortisation

-366

-84

31 December 2021

413

Airbus gross customer financing exposure as of 31 December
2021 is distributed directly over 19 aircraft, operated byapproximately seven airlines. In addition, the level of exposure
may include other aircraft-related assets, such as spare parts.

Airbus Helicopters’ gross customer financing exposureamounted to € 58 million as of 31 December 2021. This exposure
is distributed over 14 helicopters, operated by approximately
six companies.

Over the last three years (2019 to 2021), the average number ofaircraft delivered in respect of which direct financing support has
been provided by Airbus amounted to around 1% of the average
number of deliveries over the same period, i.e. seven aircraft
financed per year out of 680 deliveries per year on average.

For further information, please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 27: Sales Financing
Transactions”.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2.2 Financial Statements

2.2 Financial Statements
Copies of the AFM-filed documents are available free of charge
upon request in English at the registered office of the Company
and on www.airbus.com (Investors > Financial Results & Annual
Reports).

The IFRS Consolidated Financial Statements and theCompany Financial Statements of Airbus SE for the year ended
31 December 2021, together with the related notes, appendicesand independent auditors’ report, shall be deemed to beincorporated in and form part of this Registration Document.

The above-mentioned Financial Statements are also available
in English for inspection at the Chamber of Commerce of The
Hague.

In addition, the following documents shall be deemed to beincorporated by reference in and form part of this Registration
Document:

The Company confirms that the reports of the auditors
incorporated by reference herein have been accurately
reproduced and that as far as the Company is aware and isable to ascertain from the information provided by the auditors,
no facts have been omitted which would render such reports
inaccurate or misleading.

–– The IFRS Consolidated Financial Statements and theCompany Financial Statements of Airbus SE for the year
ended 31 December 2020, together with the related notes,
appendices and independent auditors’ report, as incorporated
by reference in the Registration Document filed in English with
the AFM on 26 March 2021 without prior approval and filed
in English with the Chamber of Commerce of The Hague.
–– The IFRS Consolidated Financial Statements and theCompany Financial Statements of Airbus SE for the year
ended 31 December 2019, together with the related notes,
appendices and independent auditors’ report, as incorporated
by reference in the Registration Document filed in English with
the AFM on 23 March 2020 without prior approval and filed
in English with the Chamber of Commerce of The Hague.

2.3 Statutory Auditor Fees
Please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 39: Auditor Fees”

2.4 Information Regarding the Statutory Auditors
Ernst & Young Accountants LLP
Boompjes 258 – 3011 XZ Rotterdam
Postbus 488 – 3000 AL Rotterdam
The Netherlands
Represented by N.M. Pul

Date of first appointment

Expiration of current term of office(1)28 April 201612 April 2022

(1) A resolution will be submitted to the Annual General Meeting of Shareholders in 2022, in order to appoint Ernst & Young Accountants LLP as the Company’s auditors for the 2022
financial year.

Ernst & Young Accountants LLP has a licence from the AFM to perform statutory audits for Public Interest Entities and its
representative is member of the NBA (Koninklijke Nederlandse Beroepsorganisatie van Accountants – the Royal Netherlands Instituteof Chartered Accountants). The NBA is the professional body for accountants in the Netherlands.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations /2

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Chapter

3
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3
General Descriptionof the Company
and its Share Capital
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.1.6
3.1.7
3.1.8
3.1.9
3.1.103.1.11
3.1.12
3.1.13General Description of the Company
Commercial and Corporate Names, Seat and Registered Office
Legal Form
Governing Laws and Disclosures
Date of Incorporation and Duration of the Company
Objects of the Company
Commercial and Companies RegistryInspection of Corporate Documents
Financial Year
Allocation and Distribution of Income
General Meetings
Disclosure of Holdings
Mandatory Disposal
Mandatory Offers

152
152
152
152
153
154
154
154
154
154
155
156
157
158

3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5

General Description of the Share Capital
Issued Share Capital
Authorised Share Capital
Modification of Share Capital or Rights Attached to the Shares
Securities Granting Access to the Company’s Share Capital
Changes in the Issued Share Capital

159
159
159
159
160
160

3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
3.3.6
3.3.7

Shareholdings and Voting Rights
Shareholding Structure at the End of 2021
Relationships with Principal Shareholders
Form of Shares
Changes in the Shareholding of the CompanyPersons Exercising Control over the Company
Simplified Group Structure Chart
Purchase by the Company of its Own Shares

161
161
162
165
165
165
165
167

3.4
3.4.1
3.4.2
3.4.3
3.4.4

Dividends
Dividends and Cash Distributions Paid
Dividend Policy of the Company
Unclaimed Dividends
Taxation

169
169
169
169
169

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3. General Description of the Company and its Share Capital /3.1 General Description of the Company

3.1 General Description of the Company
3.1.1 Commercial and Corporate Names, Seat and Registered OfficeCommercial Name: Airbus

Seat (statutaire zetel): Amsterdam

Statutory Name: Airbus SE

Tel: +31 (0)71 5245 600

Registered Office:Mendelweg 30, 2333 CS Leiden, The Netherlands

Fax: +31 (0)71 5232 807

3.1.2 Legal Form
The Company is a European public company (Societas Europaea), with its corporate seat in Amsterdam, the Netherlands andregistered with the Dutch Commercial Register (Handelsregister) under number 24288945. The Company’s legal identifier (LEI) is
MIN079WLOO247M1IL051. As a company operating worldwide, the Company is subject to, and operates under, the laws of eachcountry in which it conducts business.

3.1.3 Governing Laws and Disclosures
The Company is governed by the laws of the Netherlands(in particular Book 2 of the Dutch Civil Code and the Dutch
Corporate Governance Code) and by its Articles of Association(the “Articles of Association”).
The Company is subject to various legal provisions of the
Dutch Financial Supervision Act (Wet op het financieel toezicht)(the “WFT”). In addition, given the fact that its shares are admitted
for trading on a regulated market in France, Germany and Spain,
the Company is subject to certain laws and regulations in thesethree jurisdictions. A summary of the main regulations applicableto the Company in relation to information to be made public inthese three jurisdictions, as well as the Netherlands, is set out
below.

3.1.3.1 Periodic Disclosure Obligations
Pursuant to Directive 2004/109/EC on the harmonisation oftransparency requirements in relation to information about
issuers whose securities are admitted to trading on a regulated
market (as amended, the “Transparency Directive”), theCompany is required to disclose certain periodic and ongoing
information (the “Regulated Information”).
Pursuant to the Transparency Directive, the Company must
disseminate such Regulated Information throughout theEuropean Community in a manner ensuring fast access to suchinformation on a non-discriminatory basis. For this purpose,
the Company may use a professional service provider (wire). In
addition, Regulated Information must be filed at the same timewith the relevant competent market authority. The Company
must then ensure that Regulated Information remains publicly
available for at least ten years.

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Finally, Regulated Information must be made available for central
storage by a mechanism that is officially designated by theCompany’s home Member State.

Dutch Regulations
For the purpose of the Transparency Directive, supervision of theCompany is effected by the Member State in which it maintains
its corporate seat, which is the Netherlands. The competentmarket authority that assumes final responsibility for supervisingcompliance by the Company in this respect is the AFM.
Under the Transparency Directive as implemented under Dutch
law, the Company is subject to a number of periodic disclosure
requirements, such as:–– publishing an Annual Financial Report, together with an audit
report drawn up by the Statutory Auditors, within four months
after the end of each financial year; and–– publishing a semi-Annual Financial Report, within threemonths after the end of the first six months of the financial year.
In addition, the Company must file with the AFM, within fivedays following their adoption by the Company’s shareholders, its
audited annual Financial Statements (including the consolidatedones), the management report, the Auditors’ report and otherinformation related to the Financial Statements.

French Regulations
In accordance with the requirement set forth in the Transparency
Directive to disseminate Regulated Information throughout theEuropean Community, the Company is required to provide
simultaneously in France the same information as that provided
abroad.

3. General Description of the Company and its Share Capital /3.1 General Description of the Company

German Regulations

Dutch Regulations

Due to the listing of the Company’s shares in the Prime Standard
sub-segment of the Regulated Market (regulierter Markt) of theFrankfurt Stock Exchange, the Company is subject to certain
post-listing obligations as described below. The Company
is included inter alia in the selection index DAX of Deutsche
Börse AG.

Following the implementation of the Transparency Directive
into Dutch law, the Company must publicly disclose RegulatedInformation and also file Regulated Information with the AFM,
which will keep all relevant Regulated Information in a publicly
available register. The Company will, whenever it discloses inside
information pursuant to applicable mandatory law as part of theRegulated Information, disclose and disseminate throughout theEuropean Community any such information.

Pursuant to the Exchange Rules (Börsenordnung) of theFrankfurt Stock Exchange, the Company is required to publish
consolidated annual and semi-annual Financial Statements aswell as consolidated quarterly reports which may be preparedin English only. In addition, pursuant to the Exchange Rules,
the Company is required to publish a financial calendar at the
beginning of each financial year in German and English. The
Company is also required to hold an analysts’ meeting at least
once per year in addition to the press conference regarding theannual Financial Statements.

Spanish Regulations
In accordance with the requirement set forth in the Transparency
Directive to disseminate Regulated Information throughout theEuropean Community, the Company is required to provide
simultaneously in Spain the same information as that provided
abroad.

3.1.3.2 Ongoing Disclosure Obligations
Pursuant to the Transparency Directive, Regulated Information
includes in particular “inside information” as defined pursuant
to Article 7 of EU Regulation No. 596-2014 on market abuse(the “Market Abuse Regulation” or “MAR”). Such informationmust be disseminated throughout the European Community(see introduction to Section “– 3.1.3.1 Periodic Disclosure
Obligations”).
Inside information consists of information of a precise nature
which has not been made public, relating, directly or indirectly, toone or more issuers or to one or more financial instruments andwhich, if it were made public, would be likely to have a significant
effect on the prices of those financial instruments or on the priceof related derivative financial instruments.
Inside information must be disclosed to the markets as soon as
possible. However, an issuer may under its own responsibility
delay the public disclosure of inside information so as not toprejudice its legitimate interests provided that such delay would
not be likely to mislead the public and provided that the issuer isable to ensure the confidentiality of that information.

Under Dutch law, the Company must also publish any change inthe rights attached to its shares, as well as any changes in therights attached to any rights issued by the Company to acquire
Airbus shares.

3

French Regulations
Any inside information as defined above will be disclosed in
France by means of dissemination throughout the European
Community, as it is organised under Dutch law implementing
the Transparency Directive so as to provide simultaneously inFrance equivalent information to that provided abroad.

German Regulations
Any inside information as defined above will be disclosed inGermany by means of dissemination throughout the European
Community, as it is organised under Dutch law implementing
the Transparency Directive so as to provide simultaneously inGermany equivalent information to that provided abroad.

Spanish Regulations
Any inside information as defined above will be disclosed
simultaneously in Spain by notifying it to the CNMV which shall,in turn, make it public through its webpage.
Any other information of a financial or corporate nature which theCompany is required by law to make public in Spain or which
the Company deems necessary to disclose to investors shallbe also notified to the CNMV which shall also publish it throughits webpage.
Pursuant to the Spanish securities rules and regulations, theCompany is also required to make available to shareholders
and file with the CNMV a Corporate Governance Report in the
Spanish language or in a language customary in the sphere ofinternational finance on an annual basis.

3.1.4 Date of Incorporation and Duration of the Company
The Company was incorporated on 29 December 1998 for an unlimited duration.

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3. General Description of the Company and its Share Capital /3.1 General Description of the Company

3.1.5 Objects of the Company
Pursuant to its Articles of Association, the objects of the Company are to hold, co-ordinate and manage participations or otherinterests and to finance and assume liabilities, provide for security and/or guarantee debts of legal entities, partnerships, businessassociations and undertakings that are involved in:–– the aeronautic, defence, space and/or communication industry; or–– activities that are complementary, supportive or ancillary thereto.

3.1.6 Commercial and Companies Registry
The Company is registered with the Dutch Commercial Register (Handelsregister) under number 24288945.

3.1.7 Inspection of Corporate Documents
The Articles of Association are available for inspection in Dutchat the Chamber of Commerce.
In France, the Articles of Association are available at theoperational headquarters of the Company (2, rond-point Emile
Dewoitine, 31700 Blagnac, France, Tel.: +33 5 81 31 75 00).

In Spain, the Articles of Association are available at the CNMV
and at the Madrid office of the Company (Avenida de Aragón
404, 28022 Madrid, Spain, Tel.: +34 91 585 70 00).
The documents incorporated by reference into this Registration
Document are available on www.airbus.com.

In Germany, the Articles of Association are available at theMunich office of the Company (Willy-Messerschmitt-Strasse 1,
82024 Ottobrunn, Germany, Tel.: +49 89 60 70).

3.1.8 Financial YearThe financial year of the Company starts on 1 January and ends on 31 December of each year.

3.1.9 Allocation and Distribution of Income
3.1.9.1 Dividends
The Board of Directors shall determine which part of the profits
of the Company shall be attributed to reserves. The remaining
distributable profit shall be at the disposal of the shareholders’meeting.
The shareholders’ meeting may resolve (if so proposed by the
Board of Directors) that all or part of a distribution on shares shallbe paid in Airbus shares or in the form of assets as opposed
to cash.
The declaration of a dividend, an interim dividend or another
distribution to the shareholders shall be made known to themwithin seven days after such declaration. Declared dividends,
interim dividends or other distributions shall be payable on suchdate(s) as determined by the Board of Directors.

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Dividends, interim dividends and other distributions on sharesshall be paid by bank transfer to the bank or giro accounts
designated in writing to the Company by, or on behalf of,shareholders at the latest 14 days after their announcement.
The persons entitled to a dividend, interim dividend or other
distribution shall be the shareholders as at a record date to be
determined by the Board of Directors for that purpose, whichdate may not be a date prior to the date on which such dividend,interim dividend or other distribution is declared.

3.1.9.2 Liquidation
In the event of the dissolution and liquidation of the Company,
the assets remaining after payment of all debts and liquidation
expenses shall be distributed amongst the holders of the sharesin proportion to their shareholdings.

3. General Description of the Company and its Share Capital /3.1 General Description of the Company

3.1.10 General Meetings
3.1.10.1 Calling of Meetings
Shareholders’ meetings are held as often as the Boardof Directors deems necessary, when required under the Dutch
Civil Code (as a result of a decrease of the Company’s equity toor below half of the Company’s paid up and called up capital)
or upon the request of shareholders holding, individually or
together, at least 10% of the total issued share capital of theCompany. The AGM of Shareholders of the Company is held
within six months of the end of the financial year.
The Board of Directors must give notice of shareholders’ meetings
through publication of a notice on the Company’s website (www.
airbus.com), which will be directly and permanently accessible
until the shareholders’ meeting. The Company must comply withthe statutory rules providing for a minimum convening period,
which currently require at least 42 days of notice. The convening
notice must state the items required under Dutch law.
Shareholders’ meetings are held in Amsterdam, The Hague,
Rotterdam or Haarlemmermeer (Schiphol Airport). The Boardof Directors may decide that shareholders’ meetings may beattended by means of electronic or video communication devices
from the locations mentioned in the convening notice.
The Board of Directors must announce the date of the AGM of
Shareholders at least ten weeks before the Meeting. A matter
which one or more shareholders or other parties with meetingrights collectively representing at least the statutory threshold(which is currently 3% of the issued share capital) have requested
in writing to be put on the agenda for a General Meeting of
Shareholders shall be included in the convening notice or shallbe announced in the same fashion, if the substantiated request
or a proposal for a resolution is received by the Company no later
than the 60th day before the general meeting. When exercising
the right to put a matter on the agenda for a General Meeting of
Shareholders, the respective shareholder or shareholders are
obliged to disclose their full economic interest to the Company.
The Company must publish such disclosure on its website.
A request as referred to in the preceding paragraph may only
be made in writing. The Board of Directors can decide that in“writing” is understood to include a request that is recorded
electronically.

3.1.10.2 Right to Attend Shareholders’Meetings
Each holder of one or more shares may attend shareholders’meetings, either in person or by written proxy, speak andvote according to the Articles of Association. See “– 3.1.10.4
Conditions of Exercise of Right to Vote”. However, under (andsubject to the terms of) the Articles of Association these rights
may be suspended under certain circumstances. A shareholder,or another person who has the right to attend a shareholders’meeting, can be represented by more than one proxy holder,provided that only one proxy holder can exercise the rights
attached to each share.

The persons who have the right to attend and vote at shareholders’meetings are those who are on record in a register designated forthat purpose by the Board of Directors on the registration datereferred to in the Dutch Civil Code which is currently the 28th dayprior to the day of the shareholders’ meeting (the “Registration
Date”), irrespective of who may be entitled to the shares at thetime of that meeting.
As a prerequisite to attending the shareholders’ meeting and to
casting votes, the Company, or alternatively an entity or person
so designated by the Company, should be notified in writingby each holder of one or more shares and those who derive
the aforementioned rights from these shares, not earlier thanthe Registration Date, of the intention to attend the meeting inaccordance with the relevant convening notice.

3

Shareholders holding their Company shares through Euroclear
France S.A. who wish to attend general meetings will have torequest from their financial intermediary or accountholder anadmission card and be given a proxy to this effect from Euroclear
France S.A. in accordance with the relevant convening notice.
For this purpose, a shareholder will also be able to requestthat its shares be registered directly (and not through Euroclear
France S.A.) in the register of the Company. However, only sharesregistered in the name of Euroclear France S.A. may be tradedon stock exchanges.
In order to exercise their voting rights, the shareholders will also be
able, by contacting their financial intermediary or accountholder,to give their voting instructions to Euroclear France S.A. or toany other person designated for this purpose, as specified in
the relevant convening notice.
Pursuant to its Articles of Association, the Company may provide
for electronic means of attendance, speaking and voting at theshareholders’ meetings in such circumstances and subject tosuch conditions as determined by the Board of Directors.

3.1.10.3 Majority and Quorum
All resolutions are adopted by means of a simple majority of thevotes cast except when a qualified majority is prescribed by the
Articles of Association or by Dutch law. No quorum is required
for any shareholders’ meeting to be held except as required
under applicable law for a very limited number of resolutions ofan extraordinary nature. Dutch law requires a special majority
for the passing of certain resolutions: inter alia, capital reduction,
exclusion of pre-emption rights in connection with share issues,
statutory mergers or statutory de-mergers; the passing of such
resolutions requires a majority of two-thirds of the votes castif 50% of the share capital with voting rights is not present at
the shareholders’ meeting (or otherwise a simple majority). In
addition, resolutions to amend the Articles of Association or todissolve the Company may only be adopted with a majority of atleast two-thirds of the valid votes cast at a shareholders’ meeting,whatever the quorum present at such meeting, and resolutions
to amend certain provisions of the Articles of Association may
only be adopted with a majority of at least 75% of the valid votes
cast at a shareholders’ meeting, whatever the quorum present
at such meeting.

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3. General Description of the Company and its Share Capital /3.1 General Description of the Company

3.1.10.4 Conditions of Exercise of Right to Vote
In all shareholders’ meetings, each shareholder has one vote inrespect of each share it holds. The major shareholders of theCompany – as set forth in “– 3.3.2 Relationships with Principal
Shareholders” – do not enjoy different voting rights from thoseof the other shareholders.
A shareholder whose shares are subject to a pledge or usufruct
shall have the voting rights attaching to such shares unlessotherwise provided by law or by the Articles of Association or if, in
the case of a usufruct, the shareholder has granted voting rights
to the usufructuary. Pursuant to the Articles of Association andsubject to the prior consent of the Board of Directors, a pledgeeof shares in the Company may be granted the right to vote inrespect of such pledged shares.

According to the Articles of Association, no vote may be castat the General Meeting on a share that is held by the Company
or a subsidiary, nor for a share in respect of which one of themholds the depository receipts. Usufructuaries and pledgees ofshares that are held by the Company or its subsidiaries are,however, not excluded from their voting rights, in case the rightof usufruct or pledge was vested before the share was held by
the Company or its subsidiary.

3.1.11 Disclosure of Holdings
Pursuant to the WFT, any person who, directly or indirectly,
acquires or disposes of an (actual or deemed) interest in thecapital, voting rights or gross short position of the Company
must immediately give written notice to the AFM by means of astandard form, if, as a result of such acquisition or disposal, thepercentage of capital interest or voting rights held by such person
meets, exceeds or falls below the following thresholds: 3%, 5%,10%, 15%, 20%, 25%, 30%, 40%, 50%, 60%, 75% and 95%.
Any person whose interest in the capital, voting rights or grossshort position in the Company meets, exceeds or falls below one
or several of the above-mentioned thresholds due to a change in
the Company’s outstanding capital, or in voting rights attachedto the shares as notified to the AFM by the Company, should
notify the AFM no later than the fourth trading day after the AFM
has published the notification by the Company. Among otherthings, the Company is required to notify the AFM immediately
if its outstanding share capital or voting rights have changed by
1% or more since the Company’s previous notification. Additional
disclosure and/or publication obligations apply under European
regulations for net short positions in respect of the Company.
If at the end of a calendar year the composition of a shareholder’sholding differs from its previous disclosure as a result of theconversion of certain types of securities or following the exerciseof rights to acquire voting rights, this shareholder must thenprovide an update of its previous disclosure within four weeksof the end of each calendar year by giving written notice thereof
to the AFM. The disclosures are published by the AFM on its
website (www.afm.nl).
Pursuant to the Articles of Association, shareholders must notify
the Company when meeting or crossing the thresholds above.
The Articles of Association also contain disclosure obligations
for shareholders that apply when their interests in the Company
reach or cross certain thresholds.

Under the Articles of Association, the disclosure obligationsof shareholders are enhanced in several ways beyond what isrequired under the WFT, including by requiring the disclosureof additional information, tying the disclosure obligations to abroader range of interests in the capital or voting rights of theCompany and by requiring a shareholder to notify the Company if
his or her interest reaches, exceeds or falls below the Mandatory
Disposal Threshold (as defined below) or if the interest of ashareholder (alone or a member of a concert) which is above
such Mandatory Disposal Threshold changes in its composition,
nature and/or size.
Failure to comply with the legal obligation to notify a change inshareholding under the WFT is a criminal offence punishable bycriminal and administrative penalties as well as civil law penalties,
including the suspension of voting rights. Failure to comply witha notification under the Articles of Association can lead to asuspension of meeting and voting rights.

Disclosure Requirements
for Members of the Board of Directors
and the Executive Committee
Disclosure of Holdings
In addition to the requirements under the WFT regarding thedisclosure of holdings in case the specified thresholds are met
or exceeded or if holdings fall below these thresholds, Membersof the Board of Directors must report to the AFM the numberof shares in the Company and attached voting rights(1) held byhim or an entity controlled by him, within two weeks following
his appointment as Director, whether or not such shareholdings
meet or exceed any of the specified thresholds. Subsequently,
any Member of the Board of Directors is required to notify the
AFM of any changes in such number of shares in the Company
and attached voting rights.

(1) In this context, the term “shares” also includes for example depositary receipts for shares and rights resulting from an agreement to acquire shares or depositary
receipts for shares, specifically call options, warrants, and convertible bonds. Equally, the term “voting rights” also includes actual or contingent rights to voting
rights (e.g., embedded in call options, warrants or convertible bonds).

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3. General Description of the Company and its Share Capital /3.1 General Description of the Company

Disclosure of Transactions Carried Out
on Any Securities Issued by the Company
Based on the Market Abuse Regulation, certain persons
discharging managerial or supervisory responsibilities within
the Company as well as persons closely associated with them(together “Insiders”, as defined below), are required to notify
the Company and the AFM within three trading days of alltransactions conducted for their own account involving sharesof the Company, or derivatives or other financial instruments
related to such shares, unless the aggregate amount ofsuch transactions does not exceed € 5,000 in respect of alltransactions in a calendar year.
“Insiders” for the Company include (i) Members of the Boardof Directors and the Executive Committee of the Company as wellas certain other senior executives who are not members of thesebodies and who have regular access to inside information relating
directly or indirectly to the Company and power to take managerial
decisions affecting the future developments and businessprospects of the Company, (ii) persons closely associatedwith any person mentioned under category (i) (including theirspouses, life partners or any partner considered by nationallaw as equivalent to the spouse, dependent children and otherrelatives who have shared the same household), and (iii) legal
entities, trusts or partnerships whose managerial responsibilities

are discharged by any person referred to in categories (i) or (ii) or
which are directly or indirectly controlled by such a person, orthat have been set up for the benefit of such a person, or whose
economic interests are substantially equivalent to those of sucha person.
The Company has adopted specific internal insider trading rules(the “Insider Trading Rules”) in order to ensure compliance withthe above requirements and with other share trading regulations
applicable in the Netherlands, France, Germany and Spain. The
Insider Trading Rules are available on the Company’s website,and provide in particular that: (i) all employees and Directors
are prohibited from conducting transactions in the Company’s
shares or stock options if they have inside information, and(ii) certain persons are only allowed to trade in the Company’s
shares or stock options within very limited periods and havespecific information obligations to the ITR Compliance Officer of
the Company and the competent financial market authorities withrespect to certain transactions. The ITR Compliance Officer is
responsible for the implementation of the Insider Trading Rules.

3

Pursuant to the Market Abuse Regulation, the Company must
maintain a list of all persons working for it by virtue of a labour
relationship or otherwise, who may have access to inside
information.

3.1.12 Mandatory Disposal
3.1.12.1 Notification Requirements andMandatory Disposal Threshold
Restricting Ownership to 15%
Under the Articles of Association, each shareholder must notify
the Company when it (or another party in respect of its interest in
the Company) must make a notification to the AFM of a substantial
interest or short position with respect to the Company, when its
interest (alone or with concert parties) reaches or crosses the
Mandatory Disposal Threshold (as defined below) or subject tocertain conditions and exemptions, when changes occur in thecomposition, nature and/or size of any interest held by it or by its
concert parties in excess of the Mandatory Disposal Threshold(as defined below). Failure to comply with these obligations
may, subject to a prior notification by the Company, result in thesuspension of voting and attendance rights until the shareholder
has complied with its obligations.
The Articles of Association prohibit any shareholder fromholding an interest of more than 15% of the share capital or
voting rights of the Company, acting alone or in concert withothers (the “Mandatory Disposal Threshold”). An interest(“Interest”) includes not only shares and voting rights, butalso other instruments that cause shares or voting rights to
be deemed to be at someone’s disposal pursuant to the WFT,
and must be notified to the Dutch regulator, the AFM, if certain
thresholds are reached or crossed. Any shareholder having aninterest of more than the Mandatory Disposal Threshold must
reduce its interest below the Mandatory Disposal Threshold, forinstance by disposing of its Excess Shares, within two weeks
after such notification by the Company. Upon receipt of such
notification, the voting, attendance and dividend rights attachedto the Excess Shares shall be suspended. The same applies toconcerts of shareholders and other persons who together holdan interest exceeding the Mandatory Disposal Threshold. Shouldsuch shareholder or concert not comply with not exceeding
the 15% Mandatory Disposal Threshold by the end of such
two-week period, the voting, attendance and dividend rights
attached to all shares held by such shareholder or concert shallbe suspended, and their Excess Shares would be transferred toa Dutch law foundation (“Stichting”), which can, and eventuallymust, dispose of them. The suspension of shareholder rights
described above shall be lifted once a shareholder or concert
complies with its obligations under the Articles of Association.
The Dutch law foundation would issue depositary receipts to therelevant shareholder in return for the Excess Shares transferredto the foundation, which would entitle the relevant shareholder tothe economic rights, but not the voting rights, attached to such
Company shares. The foundation’s Articles of Association andthe terms of administration governing the relationship between
the foundation and the depositary receipt holders provide, interalia, that:–– the Board Members of the foundation must be independent
from the Company, any grandfathered persons and theiraffiliates (see “– 3.1.12.2 Exemptions from Mandatory Disposal
Threshold”) and any holder of depositary receipts and theiraffiliates (there is an agreement under which the Company will,inter alia, cover the foundation’s expenses and indemnify the
Board Members against liability);–– the Board Members are appointed (except for the initial Board
Members who were appointed at incorporation) and dismissedby the Management Board of the foundation (the Company
may however appoint one Board Member in a situation where
there are no foundation Board Members);

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157

3. General Description of the Company and its Share Capital /3.1 General Description of the Company–– the foundation has no discretion as to the exercise of voting
rights attached to any of the Company shares held by it andwill in a mechanical manner vote to reflect the outcome of thevotes cast (or not cast) by the other shareholders, and thefoundation will distribute any dividends or other distributions
it receives from the Company to the holders of depositary
receipts; and–– no transfer of a depositary receipt can be made without theprior written approval of the foundation’s Board.
For any shareholder or concert, the term “Excess Shares”,
as used above, refers to such number of shares comprisedin the interest of such shareholder or concert exceeding the
Mandatory Disposal Threshold which is the lesser of: (i) the
shares held by such shareholder or concert which represent a
percentage of the Company’s issued share capital that is equal
to the percentage with which the foregoing interest exceeds the
Mandatory Disposal Threshold; and (ii) all shares held by such
person or concert.
This restriction is included in the Articles of Association to reflect
the Company’s further normalised governance going forward,
aiming at a substantial increase of the free float and to safeguard
the interests of the Company and its stakeholders (including all
its shareholders), by limiting the possibilities of influence above
the level of the Mandatory Disposal Threshold or takeovers otherthan a public takeover offer resulting in a minimum acceptanceof 80% of the share capital referred to below.

3.1.12.2 Exemptions from Mandatory
Disposal Threshold
The restrictions pursuant to the Mandatory Disposal Thresholdunder the Articles of Association do not apply to a person
who has made a public offer with at least an 80% acceptance(including any Airbus shares already held by such person).
These restrictions also have certain grandfathering exemptions
for the benefit of shareholders and concerts holding interests
exceeding the Mandatory Disposal Threshold on 2 April 2013
(the “Exemption Date”), which is the date of first implementationof the Mandatory Disposal Threshold.
Different grandfathering regimes apply to such shareholders andconcerts, depending on the interests and the nature thereof heldby each such shareholder or concert on the Exemption Date.
The Company has confirmed that: (i) the specific exemption in
Article 16.1.b of the Articles of Association applies to Société deGestion de Participations Aéronautiques (“Sogepa”), as it held
more than 15% of the outstanding Company voting rights andshares including the legal and economic ownership thereof on the
Exemption Date; and (ii) the specific exemption in Article 16.1.cof the Articles of Association applies to the concert among
Sogepa, Gesellschaft zur Beteiligungsverwaltung GZBV mbH& Co. KG (“GZBV”) and Sociedad Estatal de Participaciones
Industriales (“SEPI”), as they held more than 15% of theoutstanding Company voting rights and shares including thelegal and economic ownership thereof on the Exemption Date.

3.1.13 Mandatory Offers
3.1.13.1 Takeover Directive
The Directive 2004/25/EC on takeover bids (the “Takeover
Directive”) sets forth the principles governing the allocation oflaws applicable to the Company in the context of a takeover bid
for the shares of the Company. The Takeover Directive refers to
the rules of the Netherlands and the rules of the European Union
Member State of the competent authority that must be chosen
by the Company from among the various market authorities
supervising the markets where its shares are listed.
For the Company, matters relating to, inter alia, the consideration
offered in the case of a bid, in particular the price, and mattersrelating to the bid procedure, in particular the information on
the offeror’s decision to make a bid, the contents of the offer
document and the disclosure of the bid, shall be determinedby the laws of the European Union Member State having thecompetent authority, which will be selected by the Company
at a future date.
Matters relating to the information to be provided to theemployees of the Company and matters relating to company law,in particular the percentage of voting rights which confers control

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and any derogation from the obligation to launch a bid, theconditions under which the Board of Directors of the Company
may undertake any action which might result in the frustrationof the bid, the applicable rules and the competent authority will
be governed by Dutch law (see “– 3.1.13.2 Dutch Law”).

3.1.13.2 Dutch Law
In accordance with the Dutch act implementing the Takeover
Directive (the “Takeover Act”), shareholders are required tomake a public offer for all issued and outstanding shares in
the Company’s share capital if they – individually or acting inconcert (as such term is defined in the Takeover Act), directly
or indirectly – have 30% or more of the voting rights (significant
control) in the Company. In addition to the other available
exemptions that are provided under Dutch law, the requirement
to make a public offer does not apply to persons, who at thetime the Takeover Act came into force, already held – individuallyor acting in concert – 30% or more of the voting rights in the
Company. In the case of such a concert, a new Member of theconcert can be exempted if it satisfies certain conditions.

3. General Description of the Company and its Share Capital /3.2 General Description of the Share Capital

3.2 General Description of the Share Capital
3.2.1 Issued Share Capital
As of 31 December 2021, the Company’s issued share capital amounted to € 786,083,690, consisting of 786,083,690 fully paid-up
shares of a nominal value of € 1 each.

3

3.2.2 Authorised Share Capital
As of 31 December 2021, the Company’s authorised share capital amounted to € 3 billion, consisting of 3 billion shares of € 1 each.

3.2.3 Modification of Share Capital or Rights Attached to the Shares
The shareholders’ meeting has the power to authorise theissuance of shares. The shareholders’ meeting may also
authorise the Board of Directors, for a period of no more than five
years, to issue shares and to determine the terms and conditionsof share issuances.
Holders of shares have a pre-emptive right to subscribe for any
newly issued shares in proportion to the aggregate nominal
value of shares held by them, except for (i) shares issued forconsideration other than cash, (ii) shares issued to employeesof Airbus and (iii) shares issued pursuant to a previously granted
right to subscribe for those shares. For the contractual position
as to pre-emption rights, see “– 3.3.2 Relationships with Principal
Shareholders”.
The shareholders’ meeting also has the power to limit or to
exclude pre-emption rights in connection with new issuances ofshares, and may authorise the Board of Directors for a period of
no more than five years, to limit or to exclude pre-emption rights.
All resolutions in this context must be approved by a two-thirds
majority of the votes cast during the shareholders’ meeting in
the case where less than half of the capital issued is present or
represented at said meeting.
However, the Articles of Association provide that the shareholders’meeting is not authorised to pass any shareholders’ resolution
to issue shares or to grant rights to subscribe for shares if theaggregate issue price is in excess of € 500 million per shareissuance, and no preferential subscription rights exist in respect
thereof (by virtue of Dutch law, or because they have been
excluded by the competent corporate body). The same limitation
applies if the shareholders’ meeting wishes to designate theBoard of Directors to have the authority to resolve on such shareissuance or granting of rights. These limitations in the Articles of
Association can only be changed by the shareholders’ meetingwith a 75% voting majority.
Pursuant to the shareholders’ resolutions adopted at the AGM
held on 14 April 2021, the powers to issue shares and to grantrights to subscribe for shares and to limit or exclude preferential
subscription rights for existing shareholders have been delegatedto the Board of Directors for the purpose of:

2. funding the Company and any of its subsidiaries, provided
that such powers shall be limited to 0.3% of the Company’s
authorised share capital.
Such powers have been granted for a period expiring at the AGM
to be held in 2022, and shall not extend to issuing shares or
granting rights to subscribe for shares if (i) there is no preferential
subscription right (by virtue of Dutch law, or because it has been
excluded by means of a resolution of the competent corporatebody) and (ii) it concerns an aggregate issue price in excess of€ 500 million per share issuance.
At the AGM held on 14 April 2021, the Board of Directors was
authorised, for a period of 18 months from the date of such AGM,
to repurchase shares of the Company, by any means, including
derivative products, on any stock exchange or otherwise, as longas, upon such repurchase, the Company would not hold morethan 10% of the Company’s issued share capital, and at a priceper share not less than the nominal value and not more than thehigher of the price of the last independent trade and the highest
current independent bid on the trading venues of the regulated
market of the country in which the purchase is carried out.
The shareholders’ meeting may reduce the issued share capitalby cancellation of shares, or by reducing the nominal value of theshares by means of an amendment to the Articles of Association.
The cancellation of shares requires the approval of a two-thirds
majority of the votes cast during the shareholders’ meeting in
the case where less than half of the capital issued is present or
represented at said meeting; the reduction of nominal value bymeans of an amendment to the Articles of Association requires
the approval of a two-thirds majority of the votes cast during theshareholders’ meeting (unless the amendment to the Articles
of Association also concerns an amendment which under the
Articles of Association requires a 75% voting majority).
At the AGM held on 14 April 2021, the Board of Directors andthe Chief Executive Officer were authorised, with powers of
substitution, to implement a cancellation of shares held or
repurchased by the Company, including the authorisation
to establish the exact number of the relevant shares thus
repurchased to be cancelled.

1. Employee Share Ownership Plans and share-related Long-Term
Incentive Plans, provided that such powers shall be limited to
0.14% of the Company’s authorised share capital; andAirbus / Registration Document 2021

159

3. General Description of the Company and its Share Capital /3.2 General Description of the Share Capital

3.2.4 Securities Granting Access to the Company’s Share Capital
There are no securities that give access, immediately or over time, to the share capital of Airbus SE (see “Notes to the IFRS
Consolidated Financial Statements – Note 36.3: Financing Liabilities”).

3.2.5 Changes in the Issued Share Capital
Nominal
Numbervalue of sharesperissued /share cancelled

Date

Nature of Transaction

20 June 2013

Cancellation of shares upon authorisation
granted by the Extraordinary General Meeting
held on 27 March 2013

€ 1 47,648,691

29 July 2013

Issue of shares for the purposeof an employee offering€1

Cancellation of shares upon authorisation
granted by the Extraordinary General
27 September 2013 Meeting held on 27 March 2013
Cancellation of shares upon authorisation
granted by the Annual Shareholders’
27 September 2013 Meeting held on 29 May 2013

Total number
of issued
shares after(1)
Premiumtransaction

Total issued
capital after
transaction-

779,719,254€ 779,719,254

2,113,245€ 57,580,650

781,832,499€ 781,832,499€1

3,099,657-

778,732,842€ 778,732,842€1

2,448,884-

776,283,958€ 776,283,958

In 2013

Issue of shares following exercise of options
granted to employees(2)€16,873,677€ 176,017,918

783,157,635€ 783,157,635

In 2014Issue of shares following exercise of options
granted to employees(2)€11,871,419€ 50,619,684

784,780,585€ 784,780,585

In 2015

Cancellation of shares upon authorisation
granted by the Annual Shareholders’Meeting held on 27 May 2015

€12,885,243-

785,333,784€ 785,333,784

In 2015

Issue of shares following exercise of options
granted to employees(2)€11,910,428-

785,344,784€ 785,344,784

In 2016

Cancellation of treasury shares€1

14,131,131-

771,213,653€ 771,213,653

In 2016

Issues of shares for the purposeof an employee offering€1

1,474,716-

772,688,369€ 772,688,369

In 2016

Issue of shares following exercise of options
granted to employees(2)€1

224,500-

772,912,869€ 772,912,869

In 2017

Issues of shares for the purposeof an employee offering€1

1,643,193-

774,556,062€ 774,556,062

In 2017

Issues of shares for the purposeof an employee offering€1

1,643,193-

774,556,062€ 774,556,062

In 2018

Issues of shares for the purposeof an employee offering€1

1,811,819-

776,367,881€ 776,367,881

In 2019

Issues of shares for the purposeof an employee offering€1

1,784,292-

778,152,173€ 778,152,173

In 2019

Issue of shares under the convertible bond€1

5,020,942-

783,173,115€ 783,173,115

In 2020

Issue of shares for the purposeof an employee offering€1

976,155-

784,149,270€ 784,149,270

In 2021

Issue of shares for the purposeof an employee offering€1

1,934,420-

786,083,690€ 786,083,690(1) The costs (net of taxes) related to the initial public offering of the shares of the Company in July 2000 have been offset against share premium for an amount of € 55,849,772.
(2) For information on Stock Option Plans under which these options were granted to the Company’s employees, see “– Corporate Governance – 4.3.3 Long-Term Incentive Plans”.

In the course of 2021, a total number of 1,934,420 new shares were issued, all of which were issued in the framework of the
Employee Share Ownership Plan (“ESOP”).
During 2021 (i) Airbus SE repurchased 220,000 shares and (ii) none of the treasury shares were cancelled. As of 31 December
2021, Airbus SE held 454,735 treasury shares.

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3. General Description of the Company and its Share Capital /3.3 Shareholdings and Voting Rights

3.3 Shareholdings and Voting Rights
3.3.1 Shareholding Structure at the End of 2021
As of 31 December 2021, the French State held 10.92% of theoutstanding Company shares through Sogepa, the German
State held 10.90% through GZBV, a subsidiary of Kreditanstalt fürWiederaufbau (“KfW”), a public law institution serving domestic
and international policy objectives of the Government of theFederal Republic of Germany, and the Spanish State held 4.11%
through SEPI. The public (including the Company’s employees)
and the Company held, respectively, 74.01% and 0.06% of theCompany’s share capital.

3

The diagram below shows the ownership structure of the Company as of 31 December 2021 (% of capital and of voting rights (inparentheses)). See “– Corporate Governance – 4.3.3 Long-Term Incentive Plans”.
Ownership Structure of Airbus SE as of 31 December 2021

FRENCHSTATEGERMANSTATE

SPANISHSTATEOTHER GERMAN
PUBLIC ENTITIES

15.69%PUBLIC

KfW

84.31%

SOGEPASEPIGZBV(2)

10.92%(10.93%)

4.11%(4.12%)

10.90%(10.91%)74.01%(1)(74.05%)

Share subject to Shareholders’ Agreement

AIRBUS SE(1) Including shares held by the Company itself (0.06%).
(2) KfW & other German public entities.

According to the AFM register on substantial holdings, the below
listed entities have notified the AFM of their substantial interestin the Company as per 16 March 2022:–– BlackRock, Inc. (3.06% of the share capital and 3.85% of thevoting rights);–– Capital Research and Management Company (9.90% of thevoting rights);–– EuroPacific Growth Fund (3.01% of the share capital and
3.01% of the voting rights);–– The Goldman Sachs Group Inc. (2.70% of the share capitaland 2.70% of the voting rights).

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161

3. General Description of the Company and its Share Capital /3.3 Shareholdings and Voting Rights

Actual interests may differ as the holder of a substantial interest
is only obliged to notify the AFM of any change in the percentageof share capital and/or voting rights if such holder, directly or
indirectly, reaches, exceeds or falls below any of the following
thresholds: 3%, 5%, 10%, 15%, 20%, 25%, 30%, 40%, 50%,
60%, 75% and 95%.
Except as described above, the Company is not aware of any
other person or legal entity that, as of the date of this Registration
Document, has a capital or voting interest in the Company of
3% or more. For further details, please refer to the website of
the AFM at: www.afm.nl

As of 31 December 2021, the Company held, directly or indirectly
through another company in which the Company holds directly or
indirectly more than 50% of the share capital, 454,735 of its own
shares, equal to 0.06% of the issued share capital. The treasury
shares owned by the Company do not carry voting rights.
For the number of shares and voting rights held by Membersof the Board of Directors and Executive Committee, see“– Corporate Governance – 4.2.1 Remuneration Policy”.
Approximately 2.21% of the share capital (and voting rights) was
held by the Company’s employees as of 31 December 2021.

3.3.2 Relationships with Principal Shareholders
In 2013, GZBV, Sogepa and SEPI entered into a shareholders’agreement (the “Shareholders’ Agreement”). The Shareholders’
Agreement, further details of which are set out below, does notgive the parties to it any rights to designate Members of theBoard of Directors or management team or to participate in thegovernance of the Company. The Company has also enteredinto state security agreements with each of the French State andGerman State, which are also described in more detail below.

3.3.2.1 Corporate Governance
Arrangements
Corporate governance arrangements of the Company were
substantially changed in 2013, resulting in changes in thecomposition of the Board of Directors and its internal rules,
as well as amendments to the Articles of Association of theCompany. These changes were intended to further normalise
and simplify the Company’s corporate governance, reflecting
an emphasis on best corporate governance practices and theabsence of a controlling shareholder group. Changes to theCompany’s corporate governance arrangements in the Articles
of Association, included (i) disclosure obligations for shareholders
that apply when their interests in the Company reach or crosscertain thresholds and (ii) ownership restrictions prohibiting any
shareholder from holding an interest of more than 15% of theshare capital or voting rights of the Company, acting alone or inconcert with others. See Sections 3.1.11 and 3.1.12 above andSection 4 below.

3.3.2.2 Shareholder Arrangements
Grandfathering Agreement
At the Consummation, the French State, Sogepa, the German
State, KfW and GZBV (all parties together the “Parties” andeach, individually, as a “Party”) entered into an agreement withrespect to certain grandfathering rights under the Articles of
Association. Below is a summary of such agreement.

Individual Grandfathering Rights
A Party that is individually grandfathered pursuant to
Article 16.1.b of the Articles of Association (such Party holding“Individual Grandfathering Rights”) shall remain individually162

Airbus / Registration Document 2021

grandfathered in accordance with the Articles of Association if
the new concert with respect to the Company (the “Concert”)
is subsequently terminated (for instance by terminating theShareholders’ Agreement) or if it exits the Concert.

Loss of Individual Grandfathering Rights
A Party holding Individual Grandfathering Rights as well as anyof its affiliates who are grandfathered pursuant to Article 16.1.b inconjunction with Article 16.3 of the Articles of Association (suchaffiliates holding “Derived Grandfathering Rights”, and theIndividual Grandfathering Rights and the Derived Grandfathering
Rights, together, the “Grandfathering Rights”) shall all no longer
be entitled to exercise their Grandfathering Rights in the event:–– the Concert is terminated as a result of it or any of its affiliates
having actually or constructively terminated such Concert; or–– it or its relevant affiliate(s) exit(s) the Concert;–– and such termination or exit is not for good cause andis not based on material and ongoing violations of theConcert arrangements, including, without limitation, of the
Shareholders’ Agreement, by the other principal Member of
the Concert.
In the event that in the future the voting rights in the Companyof the other principal Member of the Concert together withthose of its affiliates would for an uninterrupted period of threemonths represent less than 3% of the outstanding aggregate
voting rights of the Company, the Grandfathering Rights of theParty including its affiliates which were no longer entitled touse their Grandfathering Rights shall from then on revive andSogepa and GZBV shall jointly notify the Company to that effect.

Notification to the Company
The Company will not be required to take any of the actions
provided for in Article 15 of the Articles of Association pursuant
to the post-concert Grandfathering Agreement unless and until
it receives (i) a joint written instruction from Sogepa and GZBVwith respect to the taking of any of the actions provided for in
Article 15 of the Articles of Association pursuant to the postconcert Grandfathering Agreement, or (ii) a copy of a binding
advice rendered by three independent, impartial and neutral
Expert Adjudicators in order to settle any dispute between theParties arising out of or in connection with the post-concert
Grandfathering Agreement.

3. General Description of the Company and its Share Capital /3.3 Shareholdings and Voting Rights

The Company will not incur any liability to any of the Parties bytaking such actions following receipt of any such joint instruction
or binding advice and the Company will not be required tointerpret the post-concert Grandfathering Agreement or any
such joint instruction or binding advice.

Unless Sogepa and GZBV agree to vote in favour together ofsuch draft resolution, the shareholders shall vote against suchdraft resolution. If Sogepa and GZBV reach a mutual agreementon such draft resolution, the shareholders shall vote in favour ofsuch draft resolution.

Notwithstanding the description under “Various provisions– Jurisdiction” below, the courts of the Netherlands will haveexclusive jurisdiction to resolve any dispute, controversy or claim
affecting the rights or obligations of the Company under the
post-concert Grandfathering Agreement.

Reserved Matters. With respect to the matters requiring theapproval of a Qualified Majority at the Board level (“Reserved
Matters”), all the Directors shall be free to express their own
views. If the implementation of a Reserved Matter would requirea decision of the shareholders’ meeting of the Company, Sogepa
and GZBV shall consult each other with a view to reaching acommon position. Should Sogepa and GZBV fail to reacha common position, Sogepa and GZBV shall remain free toexercise on a discretionary basis their votes.

Various Provisions
Termination. The post-concert Grandfathering Agreement
terminates only if either the French State and its affiliates or
the German State and its affiliates no longer hold shares in the
Company.
Governing law. Laws of the Netherlands.
Jurisdiction. The courts of the Netherlands shall have exclusive
jurisdiction. This is binding advice for any dispute, controversy
or claim arising out of or in connection with the post-concert
Grandfathering Agreement in accordance with the procedure set
forth in the post-concert Grandfathering Agreement; provided,
however, that application to the courts is permitted to resolve
any such dispute controversy or claim.

Shareholders’ Agreement
Below is a further description of the Shareholders’ Agreement,
based solely on a written summary of the main provisions of
the Shareholders’ Agreement that has been provided to theCompany by Sogepa, GZBV and SEPI (all parties together the“Shareholders”).

Governance of the Company
Appointment of the Directors. The shareholders shall votein favour of any draft resolution relating to the appointment of
Directors submitted to the shareholders’ meeting of the Company
in accordance with the terms and conditions of the German State
Security Agreement and the French State Security Agreement(as described below). If, for whatever reason, any person to beappointed as a Director pursuant to the German State Security
Agreement or the French State Security Agreement is notnominated, the shareholders shall use their best endeavours
so that such person is appointed as a Director.
Sogepa and GZBV shall support the appointment of one
Spanish national that SEPI may present to them as Member ofthe Board of Directors of the Company, provided such person
qualifies as an Independent Director pursuant to the conditions
set forth in the Board Rules, and shall vote as shareholders inany shareholders’ meeting in favour of such appointment andagainst the appointment of any other person for such position.
If, for whatever reason, the French State Security Agreement
and/or the German State Security Agreement has / have been
terminated, KfW or Sogepa, as the case might be, shall propose
two persons, and the shareholders shall exercise their best
endeavours so that these persons are appointed as Directors.
Directors can be dismissed by the General Meeting at all times.
Modification of the Articles of Association. Sogepa and
GZBV shall consult each other on any draft resolution intending
to modify the Board Rules and/or the Articles of Association.

3

Prior consultation. Sogepa and GZBV shall consult each otheron any draft resolution submitted to the shareholders’ meetingother than related to Reserved Matters and the Board Rules.

Balance of Interests
The shareholders agree their common objective to seek abalance between themselves of their respective interest in the
Company as follows:–– to hold as closely as reasonably possible to 12% of the voting
rights for Sogepa, together with any voting rights attributable
to Sogepa and/or to the French State, pursuant to Dutch
takeover rules except for voting rights attributable due to acting
in concert with the other parties;–– to hold as closely as reasonably possible to 12% of the voting
rights for GZBV, together with any voting rights attributable to
GZBV and/or to the German State, pursuant to Dutch takeoverrules except for voting rights attributable due to acting inconcert with the other parties;–– to hold as closely as reasonably possible to 4% of the voting
rights for SEPI, together with any voting rights attributable
to SEPI and/or to the Spanish State, pursuant to Dutch
takeover rules except for voting rights attributable due to acting
in concert with the other parties.

Mandatory Takeover Threshold
The total aggregate voting rights of the shareholders shall always
represent less than 30% of the voting rights of the Company,or less than any other threshold the crossing of which would
trigger for any shareholder a mandatory takeover obligation(the “MTO Threshold”). In the event that the total aggregate
voting rights of the shareholders exceed the MTO Threshold,the shareholders shall take all appropriate actions as soon asreasonably practicable, but in any event within 30 days, to fall
below the MTO Threshold.

Transfer of Securities
Permitted transfer. Transfer of securities by any shareholder
to one of its affiliates.
Pre-emption right. Pro rata pre-emption rights of theshareholders in the event any shareholder intends to transfer
any of its securities to a third party directly or on the market.
Call-option right. Call option right for the benefit of theshareholders in the event that the share capital or the voting
rights of any shareholders cease to be majority owned directly or
indirectly by the French State, the German State or the Spanish
State as applicable.

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163

3. General Description of the Company and its Share Capital /3.3 Shareholdings and Voting Rights

Tag-along right. Tag-along right for the benefit of SEPI in theevent that Sogepa, the French State or any of their affiliates andany French public entity and GZBV, the German State or any of
their affiliates and any public entity propose together to transfer
all of their entire voting rights interests.

Various Provisions
Termination. The Shareholders’ Agreement may cease to
apply in respect of one or more Shareholders and/or theiraffiliates, subject to the occurrence of certain changes in its
or their shareholding interest in the Company or in its or theirshareholders.
Governing law. Laws of the Netherlands.
Jurisdiction. Arbitration in accordance with the Rules ofArbitration of the International Chamber of Commerce, with theseat of arbitration in The Hague (the Netherlands).

3.3.2.3 Undertakings with Respect
to Certain Interests of Certain
Stakeholders
The Company has made certain undertakings and entered into
certain agreements in connection with certain interests of its
former core shareholders and the German State.

State Security Agreements and Related
Undertakings and Negotiations
The Company and the French State have entered into anamendment to the existing convention between them relating
to the Company’s ballistic missiles business (as so amended,
the “French State Security Agreement”). Under the French
State Security Agreement, certain sensitive French military
assets are held by a Company subsidiary (the “French Defence
Holding Company”). The French State has the right to approveor disapprove of – but not to propose or appoint – three outside
Directors to the Board of Directors of the French Defence Holding
Company (the “French Defence Outside Directors”), at least
two of whom must qualify as Independent Directors under the
Board Rules if they were Members of the Board of Directors.
Two of the French Defence Outside Directors are required also
to be Members of the Board of Directors of the Company.
French Defence Outside Directors may neither (i) be employees,
managers or corporate officers of a company belonging to
the Company (although they may be Members of the Boardof Directors of the Company) nor (ii) have material ongoingprofessional relationships with Airbus SE.
The Company and the German State have entered into anagreement relating to the protection of essential interests to
the German State’s security (the “German State Security
Agreement”). Under the German State Security Agreement,
certain sensitive German military activities are pursued directly
or indirectly by a Company subsidiary (the “German Defence
Holding Company”). The German State has the right to approveor disapprove of – but not to propose or appoint – three outside
Directors to the Supervisory Board of the German Defence
Holding Company (the “German Defence Outside Directors”),
at least two of whom must qualify as Independent Directors underthe Board Rules if they were Members of the Board of Directors.
Two of the German Defence Outside Directors are required to164

Airbus / Registration Document 2021

also be Members of the Board of Directors. The qualifications toserve as a German Defence Outside Director are comparable tothose to serve as a French Defence Outside Director.
In February 2021, the Company and the Spanish State enteredinto an agreement relating to the protection of essential security
interests to the Spanish State (the “Spanish State Security
Agreement”). Under the Spanish State Security Agreement,
certain sensitive Spanish military assets are held by a Company’s
subsidiary (the “Spanish Defence Holding Company”).
Pursuant to the Spanish State Security Agreement, the Company
granted the Spanish State a pre-emption right to acquire thesensitive assets as defined under the Spanish State Security
Agreement. The pre-emption right applies in case the Spanish
Defence Holding Company wishes to sell the sensitive assets toan entity outside Airbus or outside Spain’s territory. In such case,the Spanish State has the right to acquire the sensitive assets.

Dassault Aviation
The Company entered into an agreement with the French State
pursuant to which the Company:–– grants the French State a right of first offer in case of the saleof all or part of its shareholding in Dassault Aviation; and–– commits to consult with the French State prior to making any
decision at any shareholders’ meeting of Dassault Aviation.
The Company holds 9.90% of Dassault Aviation’s share capital.
For more information about Dassault Aviation, see “– Informationon the Company’s Activities – 1.1.5 Investments”.

Stock Exchange Listings
The Company has undertaken to the parties to the Shareholders’
Agreement that for the duration of the Shareholders’ Agreement
the Company’s shares will remain listed exclusively in France,
Germany and Spain.

Specific Rights
French State: Pursuant to the “French State Security
Agreement”, the Company has granted to the French State:(a) a veto right, and subsequently, a call option on the shares of
the Company performing the ballistic missiles activity exercisable
under certain circumstances, including if (i) a third party acquires,directly or indirectly, either alone or in concert, more than 15%
or any multiple thereof of the share capital or voting rights of
the Company, or (ii) the sale of the shares of such companies
carrying out such activity is considered, and (b) a right to oppose
the transfer of any such shares.
German State: Pursuant to the “German State Security
Agreement”, the Company and the German Defence Holding
Company have granted to the German State a pre-emption rightto acquire the sensitive activities, as defined under the German
State Security Agreement. The pre-emption right applies incase the German Defence Holding Company wishes to sell thesensitive activities to an entity outside the Company, or outside
the German territory, or the shares of a controlled entity whichhosts sensitive activities. In such a case, the German State may
acquire the shares of such a controlled entity. Furthermore, theGerman State has the right to acquire the sensitive activities incase the Company intends to allocate the sensitive activities
outside Germany or to give-up the sensitive activities.

3. General Description of the Company and its Share Capital /3.3 Shareholdings and Voting Rights

3.3.3 Form of Shares
The shares of the Company are in registered form. The Board of Directors may decide with respect to all or certain shares, onshares in bearer form.
Shares shall be registered in the shareholders’ register without the issue of a share certificate or should the Board of Directors so
decide, with respect to all or certain shares, with the issue of a certificate. Share certificates shall be issued in such form as theBoard of Directors may determine. Registered shares shall be numbered in the manner to be determined by the Board of Directors.

3

3.3.4 Changes in the Shareholding of the Company
The evolution in ownership of the share capital and voting rights of the Company over the past three years is set forth in the tablebelow:
Position as of
31 December 2021

Shareholders

Position as of
31 December 2020

% ofcapital% ofvotingrightsNumberof shares

Position as of
31 December 2019

% ofcapital% ofvotingrightsNumberof shares% ofcapital% ofvotingrightsNumberof shares

SOGEPA

10.92%

10.92%

85,835,477

10.95%

10.95%

85,835,477

10.96%

10.97%

85,835,477

GZBV(1)10.90%

10.91%

85,709,822

10.93%

10.94%

85,709,822

10.94%

10.96%

85,709,822

SEPI

4.11%

4.11%

32,330,381

4.12%

4.13%

32,330,381

4.13%

4.13%

32,330,381

25.93%

25.94%

203,875,680

26.00%

26.01%

203,875,680

26.03%

26.06%

203,875,680

Sub-total New
Shareholder Agt.
Foundation “SOGEPA”

00.0%

0.00%

0

0.00%

0.00%

0

0.00%

0.00%

0

Public(2)74.01%

74.05%

581,973,275

73.94%

73.99%

579,840,715

73.86%

73.94%

578,434,825-

234,735

0.06%-

432,875

0.11%-

862,610

100% 786,083,690

100%

100% 784,149,270

100%

100%

783,173,115

Own share buyback(3)

0.03%

Total

100%

(1) KfW & other German public entities.
(2) Including Company employees. As of 31 December 2021, the Company’s employees held approximately 2.21% of the share capital (and voting rights).
(3) The shares owned by the Company do not carry voting rights.

To the knowledge of the Company, there are no pledges overthe shares of the Company.
The Company requested disclosure of the identity of thebeneficial holders of its shares held by identifiable holders (titres
au porteur identifiables) holding 2,000 or more shares each. The
study, which was completed on 31 December 2021, resulted
in the identification of 2,331 shareholders holding a total of571,485,155 Company shares (including 2,186,945 shares held by
Iberclear on behalf of the Spanish markets and 24,597,254 shares
held by GZBV on behalf of the German market).
The shareholding structure of the Company as of 31 December
2021 is as shown in the diagram in “– 3.3.1 Shareholding
Structure at the end of 2021”.

3.3.5 Persons Exercising Control over the Company
See “– 3.3.1 Shareholding Structure at the end of 2021” and “– 3.3.2 Relationships with Principal Shareholders”.

3.3.6 Simplified Group Structure Chart
The following chart illustrates the simplified organisational structure of Airbus as of 1 January 2022, comprising the Divisions
and the main Business Units. See “– Information on the Company’s Activities – 1.1.1 Overview – Organisation of the Company’s
Businesses”. For ease of presentation, certain intermediate holding companies have been omitted.

Airbus / Registration Document 2021

165

166

Airbus / Registration Document 2021

MBDA
(France)

37.5%*

Airbus Defence
and Space SAS(France)11.29%

75%*

Airbus Group
Inc.
(USA)

Airbus Americas,
Inc.
(USA)

Airbus Helicopters
DeutschlandGmbH(Germany)

Airbus Helicopters(France)

Premium Aerotec
GmbH(Germany)

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

Airbus Operations
GmbH(Germany)

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

4.22%

Airbus Helicopters
UK Limited(UK)

ATR GIE(France)50%*

Computadoras,Redese Ingenieria, S.A.
(Spain)Airbus Defence
and Space, S.A.
(Spain)95.78%

Airbus Operations
Limited(UK)

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

Airbus Defence
and Space
Limited(UK)

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

MBDA Group

Ariane Group

Airbus Helicopters

Airbus Defence and Space

Ariane Group50%*

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

Airbus DS Holding
SAS
4.04%
(France)95.96%

Elbe
FlugzeugwerkeGmbH(Germany)

45%

Airbus Defence
and Space GmbH
(Germany)

88.71%(The Netherlands)

AIRBUS SE

3. General Description of the Company and its Share Capital /3.3 Shareholdings and Voting Rights

3. General Description of the Company and its Share Capital /3.3 Shareholdings and Voting Rights

3.3.7 Purchase by the Company of its Own Shares
3.3.7.1 Dutch Law and Information on
Share Repurchase Programmes
Under Dutch civil law, the Company may acquire its own shares,
subject to certain provisions of the law of the Netherlands andthe Articles of Association, if (i) the shareholders’ equity less thepayment required to make the acquisition does not fall below
the sum of paid-up and called portion of the share capital andany reserves required by the law of the Netherlands and (ii) the
Company and its subsidiaries would not thereafter hold or holdin pledge shares with an aggregate nominal value exceeding
one-half (50%) of the Company’s issued share capital. Shareacquisitions may be effected by the Board of Directors only if
the shareholders’ meeting has authorised the Board of Directors
to effect such repurchases. Such authorisation may apply for a
maximum period of 18 months.
For the authorisations granted to the Board of Directors at
the AGM of Shareholders held on 14 April 2021, see “– 3.2.3
Modification of Share Capital or Rights Attached to the Shares”.

3.3.7.2 European Regulation
Pursuant to the Market Abuse Regulation and EU DelegatedRegulation no. 2016/1052, the Company is subject to conditions
for share repurchase programmes and disclosure relating
thereto. In particular, prior to implementing the share repurchaseprogramme, the Company must ensure adequate disclosure of
the following information: the purpose of the programme, themaximum pecuniary amount allocated to the programme, themaximum number of shares to be acquired, and the durationof the programme.
In addition, the Company must report to the competent authorityof each trading venue on which the shares are admitted to tradingor are traded no later than by the end of the seventh daily market
session following the date of execution of the transaction, all thetransactions relating to the buy-back programme and ensure
adequate disclosure of that certain information relating thereto
within the same time frame. These transactions must be postedon the Company’s website and be made available to the public
for at least a five-year period from the date of adequate public
disclosure.

3.3.7.3 French Regulations
As a result of its listing on a regulated market in France, theCompany is subject to the European regulations summarised
above in 3.3.7.2 (European Regulation).
In addition, the Autorité des marchés financiers (“AMF”)
General Regulations and AMF guidelines n°2017-04 define theconditions for a company’s trading in its own shares to be valid inaccordance with the Market Abuse Regulation and EU DelegatedRegulation no. 2016/1052.

3

Moreover, the Company must report to the AMF, on at least
a monthly basis, all the specified information regarding such
purchases previously published on its website and information
concerning the cancellation of such repurchased shares.

3.3.7.4 German Regulations
As a foreign issuer, the Company is subject to German rules
on repurchasing its own shares only to a limited extent, sinceGerman rules refer to the law of the Member State in which theCompany is domiciled. In addition, general principles of German
law on equal treatment of shareholders are applicable.
The European regulations summarised above in 3.3.7.2(European Regulation) also applies to the Company in Germany.

3.3.7.5 Spanish Regulations
As a foreign issuer, the Company is not subject to Spanish
rules on trading in its own shares, which only apply to Spanish
issuers. The European regulations summarised above in 3.3.7.2(European Regulation) also applies to the Company in Spain.

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167

3. General Description of the Company and its Share Capital /3.3 Shareholdings and Voting Rights

3.3.7.6 Description of the Share Repurchase Programme to Be Authorisedby the Annual General Meeting of Shareholders to Be Held on 12 April 2022
Pursuant to Articles 241-2-I and 241-3 of the French AMF General
Regulations, below is a description of the share repurchaseprogramme (descriptif du programme) to be implemented by
the Company:–– date of the shareholders’ meeting to authorise the share
repurchase programme: 12 April 2022;–– intended use of the Airbus SE shares held by the Company
as of the date of this document: the owning of shares for the
performance of obligations related to employee share option
programmes or other allocations of shares to employees ofAirbus and Airbus’ companies;–– purposes of the share repurchase programme to be
implemented by the Company (by order of decreasingpriority, without any effect on the actual order of use of
the repurchase authorisation, which will be determinedon a case-by-case basis by the Board of Directors basedon need):–– the reduction of share capital by cancellation of all or partof the repurchased shares, it being understood that the
repurchased shares shall not carry any voting or dividend
rights,–– the owning of shares for the performance of obligations
related to (i) debt financial instruments convertible into
Airbus SE shares, or (ii) employee share option programmes
or other allocations of shares to employees of Airbus andAirbus’ companies,–– the purchase of shares for retention and subsequent use forexchange or payment in the framework of potential external
growth transactions, and–– the liquidity or dynamism of the secondary market of the
Airbus SE shares carried out pursuant to a liquidity agreement
to be entered into with an independent investment services
provider in compliance with the decision of the AMF dated
1 October 2008 (as amended) related to approval of liquidity
agreements recognised as market practices by the AMF;–– procedure:–– maximum portion of the issued share capital that may be
repurchased by the Company: 10%,–– maximum number of shares that may be repurchased by theCompany: 78,608,369 shares, based on an issued sharecapital of 786,083,690 shares as of 16 February 2022,–– the amounts to be paid in consideration for the purchase of
the treasury shares must be, in accordance with applicable
Dutch law, 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 trading venues of the regulated market of the country
in which the purchase is carried out;

168

Airbus / Registration Document 2021–– the Company undertakes to maintain at any time a sufficientnumber of shares in public hands to meet the thresholds ofEuronext, shares may be bought or sold at any time (including
during a public offering) to the extent authorised by the stock
exchange regulations and by any means, including, without
limitation, by means of block trades and including the use of
options, combinations of derivative financial instruments or
the issue of securities giving rights in any way to Airbus SE
shares within the limits set out in this document;–– the portion of shares repurchased through the use of blocktrades may amount to all the shares to be repurchasedin the context of this programme. In addition, in the eventthat derivative financial instruments are used, the Company
will ensure that it does not use mechanisms which would
significantly increase the volatility of the shares in particularin the context of call options, characteristics of the shares
to be repurchased by the Company: shares of Airbus SE, a
company listed on Euronext Paris, on the regulierter Marktof the Frankfurt Stock Exchange and on the Madrid, Bilbao,
Barcelona and Valencia Stock Exchanges;–– maximum purchase price per share: not less than thenominal value and not more than the higher of the price ofthe last independent trade and the highest bid on the trading
venues of the regulated market of the country in which thepurchase is carried out;–– term of the share repurchase programme and othercharacteristics: this share repurchase programme shall bevalid until 12 October 2023 inclusive, i.e. the date of expiry of
the authorisation requested from the AGM of Shareholders
to be held on 12 April 2022.
As of the date of this document, the Company has not entered into
any liquidity agreement with an independent investment services
provider in the context of the share repurchase programme.

Share Repurchase Programme 2021
In December 2021, the Company started implementing a sharebuyback programme that was conferred by Board of Directors
on 14 April 2021 following the authorisation by the Company’s
Annual General Meeting of shareholders on 14 April 2021.
This share buyback programme is reported in accordance with
the Market Abuse Regulation.

3. General Description of the Company and its Share Capital /3.4 Dividends

3.4 Dividends
3.4.1 Dividends and Cash Distributions Paid
Cash distributions paid to the shareholders are set forth in the table below:
Financial year

Date of the cash distribution payment

Gross amount per share(1)Adjusted amount per share(2)2016

20 April 2017

€ 1.35€ 1.332

2017

18 April 2018

€ 1.50€ 1.4832018

17 April 2019

€ 1.65€ 1.636

2019

N/A

€0

€0

2020

N/A

€0

€0

3

(1) Note: figures take into account the number of shares outstanding at the date of payment.
(2) Note: amounts per share adjusted to the current number of shares outstanding as of 31 December 2021.

3.4.2 Dividend Policy of the Company
In December 2013, Airbus formalised a dividend policy
demonstrating a strong commitment to shareholder returns.
This policy targets sustainable growth in the dividend within a
pay-out ratio of 30%-40%.
However, in 2020, the COVID-19 pandemic has severely
disrupted the Company’s business operations and financial
performance. As a result, no dividend was proposed for 2020.
Based on the strong 2021 financial performance, the Boardof Directors proposes to reintroduce a dividend payment andwill propose to the Annual General Meeting the payment toshareholders on 21 April 2022 of a dividend of € 1.50 per
share.
This dividend proposal reflects our Net Income of € 4.2 billion
together with our strengthening Net Cash position of € 7.6 billion.
It highlights our ongoing commitment towards sustained
dividend growth and increasing shareholder returns. The record
date should be 20 April 2022.

3.4.3 Unclaimed Dividends
Pursuant to the Articles of Association, the claim for payment of
a dividend or other distribution approved by the shareholders’meeting shall lapse five years after the day on which such claim
becomes due and payable. The claim for payment of interim

dividends shall lapse five years after the day on which the claim
for payment of the dividend against which the interim dividend
could be distributed becomes due and payable.

3.4.4 Taxation
The statements below represent a broad analysis of the current
tax laws of the Netherlands. The description is limited to thematerial tax implications for a holder of the Company’s shares(the “Shares”) who is not and is not deemed to be resident in
the Netherlands for any Dutch tax purposes (a “Non-Resident
Holder”). Certain categories of holders of the Company’s shares
may be subject to special rules which are not addressed below

and which may be substantially different from the general rules
described below. Investors who are in doubt as to their tax
position in the Netherlands and in their state of residence should
consult their professional advisors. Where the summary refers
to “the Netherlands” or “Netherlands” or “Dutch”, it refers only
to the European part of the Kingdom of the Netherlands.

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169

3. General Description of the Company and its Share Capital /3.4 Dividends

Withholding Tax on Dividends
In general, a dividend distributed by the Company in respect ofShares will be subject to Dutch withholding tax at a statutory
rate of 15%. Dividends include inter alia dividends in cash or in
kind, deemed and constructive dividends, (partial) repaymentsof paid-in capital not recognised as capital for Dutch dividend
withholding tax purposes, and liquidation proceeds in excessof the average paid-in capital recognised as capital for Dutch
dividend withholding tax purposes. Stock dividends paid out of
the Company’s paid-in-share premium, recognised as capitalfor Dutch dividend withholding tax purposes, will not be subject
to this withholding tax.
A Non-Resident Holder of Shares can be eligible for a partial orcomplete exemption or refund of all or a portion of the above
withholding tax pursuant to domestic rules or under a tax
convention that is in effect between the Netherlands and the
Non-Resident Holder’s country of residence for tax purposes.
The Netherlands has concluded such conventions with the US,
Canada, Switzerland, Japan, almost all European Union Member
States and other countries.

Withholding Tax on Sale or
Other Dispositions of Shares
Payments on the sale or other dispositions of Shares will not
be subject to Dutch withholding tax, unless the sale or otherdisposition is, or is deemed to be, made to the Company ora direct or indirect subsidiary of the Company. In principle,
a redemption or sale to the Company or a direct or indirect
subsidiary of the Company will be deemed to be a dividend
and will be subject to the rules set forth in “Withholding Tax on
Dividends” above.

Taxes on Income and Capital Gains
A Non-Resident Holder who receives dividends distributed by
the Company on Shares or who realises a capital gain derived
from Shares, will not be subject to Dutch taxation on income ora capital gain unless:–– the income or capital gain is attributable to an enterpriseor part thereof which is either effectively managed in the
Netherlands or carried on through a permanent establishment(vaste inrichting) or permanent representative (vaste
vertegenwoordiger) taxable in the Netherlands and the holderof Shares derives profits from such enterprise (other than by
way of the holding of securities); or–– the Non-Resident Holder is an entity and has, directly or
indirectly, a substantial interest (aanmerkelijk belang) ora deemed substantial interest in the Company and suchinterest is held by the Non-Resident Holder with the main
purpose of or one of the main purposes of avoiding personal
income tax for another person; or

170

Airbus / Registration Document 2021–– the Non-Resident Holder is an individual and such holder ora connected person to such holder (verbonden persoon) has,directly or indirectly, a substantial interest (aanmerkelijk belang)or a deemed substantial interest in the Company which is not
attributable to an enterprise; or–– the income or capital gain qualifies as income frommiscellaneous activities (belastbaar resultaat uit overigewerkzaamheden) in the Netherlands as defined in the Dutch
Income Tax Act 2001 (Wet inkomstenbelasting 2001), including
without limitation, activities that exceed normal, active portfolio
management (normaal actief vermogensbeheer).
Generally, a Non-Resident Holder of Shares will not have asubstantial interest in the Company’s share capital, unless the
Non-Resident Holder, alone or together with certain related
persons holds, jointly or severally directly or indirectly, Sharesin the Company, or a right to acquire Shares in the Company
representing 5% or more of the Company’s total issued andoutstanding share capital or any class thereof. Generally, a
deemed substantial interest exists if all or part of a substantial
interest has been or is deemed to have been disposed of withapplication of a roll-over relief.

Gift or Inheritance Taxes
Dutch gift or inheritance taxes will not be levied on the occasionof the transfer of Shares by way of gift by, or on the death of,a Non-Resident Holder, unless the transfer is construed as aninheritance or gift made by or on behalf of, a person who, at thetime of the gift or death, is or is deemed to be resident in the
Netherlands for the purpose of the relevant provisions.

Value Added Tax
There is no Dutch value added tax payable by a holder of Sharesin respect of dividends on the Shares or on the transfer of the
Shares.

Other Taxes and Duties
There is no Dutch registration tax, stamp duty or any other similar
tax or duty other than court fees payable in the Netherlands by aholder of Shares in respect of or in connection with the execution,delivery and/or enforcement by legal proceedings (including any
foreign judgement in the courts of the Netherlands) with respect
to the dividends on the Shares or on the transfer of the Shares.

Residence
A Non-Resident Holder will not become resident, or be deemed
to be resident, in the Netherlands solely as a result of holding
a Share or of the execution, performance, delivery and/or
enforcement of rights in respect of the Shares.

3. General Description of the Company and its Share Capital /3

Airbus / Registration Document 2021

171

Chapter

4
172

Airbus / Registration Document 2021

4Corporate
Governance
4.1
4.1.1
4.1.2
4.1.3
4.1.4

Management and ControlCorporate Governance Arrangements
Dutch Corporate Governance Code, “Comply or Explain”
Enterprise Risk Management System
Internal Audit

174
174
197
198
200

4.2
4.2.1
4.2.2
4.2.3

Interests of Directors and Principal Executive Officers
Remuneration PolicyLong-Term Incentives Granted to the Chief Executive Officer
Related Party Transactions

201
201
214
215

4.3
4.3.1
4.3.2
4.3.3

Employee Success Sharing and Incentive Plans
Employee Success Sharing and Incentive Agreements
Employee Share Ownership PlansLong-Term Incentive Plans

215
215
215
216

Airbus / Registration Document 2021

173

4. Corporate Governance /4.1 Management and Control

4.1 Management and Control
The corporate governance arrangements of the Company were
substantially changed pursuant to the Multiparty Agreement,
including changes in the composition of the Board of Directors
and the rules governing its internal affairs (the “Board Rules”).
These changes are intended to further normalise and simplify

the Company’s corporate governance, reflecting an emphasis
on best corporate governance practices and the absence of acontrolling shareholder group. Below is a summary descriptionof such changes.

4.1.1 Corporate Governance Arrangements
4.1.1.1 Board of Directorsa) Composition, Powers and Rules
Under the Articles of Association, the Board of Directors consistsof at most 12 Directors. Under the Board Rules, each Board
Director shall retire at the close of the AGM held three years
following his or her appointment, unless the said mandate isrenewed. Under the Board Rules, at least a majority of theMembers of the Board of Directors (i.e. 7/12) must be European
Union (“EU”; any reference in the Board Rules to the EU includes
the UK, notwithstanding the withdrawal of the UK from the EU)
nationals (including the Chairman of the Board of Directors) anda majority of such majority (i.e. 4/7) must be both EU nationals
and residents. No Director may be an active civil servant. The
Board of Directors has one Executive Director and 11 NonExecutive Directors. While the Board of Directors appoints
the Chief Executive Officer of the Company (the “CEO”), theCEO is required to be an Executive Director and must be an EU
national and resident; therefore it is anticipated that the Boardof Directors will appoint as CEO the person appointed by theshareholders as an Executive Director. At least nine of the NonExecutive Directors must be “Independent Directors” (including
the Chairman of the Board of Directors).
Under the Board Rules, an “Independent Director” is a NonExecutive Director who is independent within the meaning of
the Dutch Corporate Governance Code (the “Dutch Code”) andmeets additional independence standards. Specifically, where
the Dutch Code would determine non-independence, in part,by reference to a Director’s relationships with shareholders who
own at least 10% of the Company, the Board Rules determine
such Director’s non-independence, in relevant part, by reference
to such Director’s relationships with shareholders who own atleast 5% of the Company. According to the criteria of the Dutch
Code and the Board Rules, all Non-Executive Directors (including
the Chairman) presently qualify as an “Independent Director”.
The Remuneration, Nomination and Governance Committee of theBoard of Directors (the “RNGC”) is charged with recommending
to the Board of Directors the names of candidates to succeed
active Board Members after consultation with the Chairman of
the Board of Directors and the CEO.
The Board of Directors, deciding by simple majority vote,proposes individuals to the shareholders’ meeting of theCompany for appointment as Directors by the shareholders’meeting. No shareholder or group of shareholders, or any other174

Airbus / Registration Document 2021

entity, has the right to propose, nominate or appoint any Directors
other than the rights available to all shareholders under Dutchlaw.
In addition to the membership and composition rules describedabove, the RNGC, in recommending candidates for the Boardof Directors, and the Board of Directors in its resolutions
proposed to the shareholders’ meeting regarding the renewal
or appointment of Directors, are both required to apply thefollowing principles:–– the preference for the best candidate for the position;–– the preference for gender diversity between equal profiles;–– the maintenance of appropriate skills mix and geographicalexperience;–– the maintenance, in respect of the number of Members of
the Board of Directors, of the observed balance among thenationalities of the candidates in respect of the location of themain industrial centres of the Company (in particular among thenationals of France, Germany, Spain and the United Kingdom,
where these main industrial centres are located); and–– at least a majority of the Members of the Board of Directors(i.e. 7/12) shall be EU nationals (including the Chairman), anda majority of such majority (i.e. 4/7) shall be both EU nationals
and residents (including the UK and its constituent countries,
notwithstanding a withdrawal of the UK from the EU).
In accordance with these principles the Board of Directors shallcontinue to seek greater diversity with respect to gender, age,geography, education, profession and background.
No changes were made to the membership of the Board of
Directors in 2021.
It was in September 2021 that Mr. Carlos Tavares announced
he will not seek reelection at the AGM 2022 as Member of theBoard of Directors.
At the end of 2021, the average age of the Members of the Boardof Directors was 60. The proportion of female representatives
is today at 25%. The Board of Directors composition showsa balanced mix of experience with, for example, six Members
having aerospace industry skills, six having geopolitical skills,
nine having finance skills, four having information or data
management skills, four having manufacturing and production
skills and five having sustainability skills. More details about
the diversity of the Members of the Board of Directors areavailable in the table entitled Airbus SE Board of Directors until
AGM 2022.

4. Corporate Governance /4.1 Management and Control

The Board of Directors is required to take into account, in the
resolutions proposed in respect of the renewal or nominationof Directors presented to the shareholders’ meeting, theundertakings of the Company to the French State, pursuant tothe amendment to the French State Security Agreement, andto the German State, pursuant to the German State Security
Agreement, in each case as described more fully above. In
practice, this means that at all times the Board of Directors
needs to have: (i) two Directors who should also be French
Defence Outside Directors (as defined above) of the French
Defence Holding Company (as defined above) who have been
proposed by the Company and consented to by the French
State and (ii) two Directors who should also be German Defence
Outside Directors (as defined above) of the German Defence
Holding Company (as defined above) who have been proposedby the Company and consented to by the German State.
The RNGC endeavours to avoid a complete replacement ofoutgoing Directors by new candidates, and draws up an
appointment and reappointment schedule for the Directors after
consultation with the Chairman and the CEO. In drawing up sucha schedule, the RNGC considers the continuity of companyspecific knowledge and experience within the Board of Directors,
also taking into account that a Director should at the time of his/her appointment or re-appointment not be older than 75 years
and ensuring that at least one third of Directors’ positions areeither renewed or replaced every year for a term of three years.
This is to avoid large block replacements of Directors at one
single AGM, with the corresponding loss of experience andintegration challenges, provided that exceptions to these rules
may be agreed by the Board of Directors if specific circumstances
provide an appropriate justification for such exceptions.

b) Role of the Board of Directors
Most Board of Directors’ decisions can be made by a simple
majority of the votes cast by the Directors (a “Simple Majority”),
but certain decisions must be made by a two-thirds majority(i.e. eight favourable votes) of votes cast by the Directors
regardless of whether they are present or represented in
respect of the decision (a “Qualified Majority”). In addition,
amendments to certain provisions of the Board Rules require
the unanimous approval of the Board of Directors, with no morethan one Director not being present or represented (including
provisions relating to nationality and residence requirements withrespect to Members of the Board of Directors and the Executive
Committee). However, no individual Director or class of Directors
has a veto right with respect to any Board of Directors’ decisions.
The Board Rules specify that in addition to the Board of
Directors’ responsibilities under applicable law and the Articles
of Association, the Board of Directors is responsible for certain
enumerated categories of decisions. Under the Articles of
Association, the Board of Directors is responsible for the
management of the Company. Under the Board Rules, the Boardof Directors delegates the execution of the strategy as approvedby the Board of Directors and the day-to-day management of
the Company to the CEO, who, supported by the Executive
Committee and its executive leadership team, makes decisions
with respect to the management of the Company. However,
the CEO should not enter into transactions that form part of
the key responsibilities of the Board of Directors, unless thesetransactions have been approved by the Board of Directors.

Matters that require Board of Directors’ approval include among
others, the following items (by Simple Majority unless otherwise
noted):–– approving any change in the nature and scope of the businessof the Company;–– debating and approving the overall strategy and the strategicplan of the Company;–– approving the operational business plan of the Company (the“Business Plan”) and the yearly budget of the Company (the“Yearly Budget”), including the plans for investment, researchand development (“R&D”), Employment, Finance and, as far
as applicable, major programmes;–– nominating, suspending or revoking the Chairman of the Boardof Directors and the CEO (Qualified Majority);–– approving of all of the members of the Executive Committee
as proposed by the CEO and their service contracts and othercontractual matters in relation to the Executive Committee anddeciding upon the appointment and removal of the Secretary
to the Board of Directors on the basis of the recommendationof the RNGC;–– approving the relocation of the headquarters of theprincipal companies of the Company and of the operational
headquarters of the Company (Qualified Majority);–– approving decisions in connection with the location of new
industrial sites material to the Company or the change of thelocation of existing activities that are material to the Company;–– approving decisions to invest and initiate programmes financedby the Company, acquisition, divestment or sale decisions, ineach case for an amount in excess of € 300 million;–– approving decisions to invest and initiate programmes financedby the Company, acquisition, divestment or sale decisions, ineach case for an amount in excess of € 800 million (Qualified
Majority);–– approving decisions to enter into and terminate strategic
alliances at the level of the Company or at the level of one ofits principal subsidiaries (Qualified Majority);–– approving matters of shareholder policy, major actions or
major announcements to the capital markets; and–– approving decisions in respect of other measures and businessof fundamental significance for the Company or which involves
an abnormal level of risk.

4

The Board of Directors must have a certain number of Directors
present or represented at a meeting to take action. This quorum
requirement depends on the action to be taken. For the Boardof Directors to make a decision on a Simple Majority matter,a majority of the Directors must be present or represented.
For the Board of Directors to make a decision on a Qualified
Majority matter, at least ten of the Directors must be present or
represented. If the Board of Directors cannot act on a Qualified
Majority Matter because this quorum is not satisfied, the quorum
would decrease to eight of the Directors at a new duly calledmeeting.
In addition, the Board Rules detail the rights and duties of themembers of the Board of Directors and set out the core principles
which each member of the Board of Directors shall comply withand shall be bound by, such as acting in the best interest of theCompany and its stakeholders, devoting necessary time andattention to the carrying out of his/her duties and avoiding any
and all conflicts of interest.

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175

4. Corporate Governance /4.1 Management and Controlc) The Board of Directors(i) Composition of the Board of Directors in 2021
Board member
Age*, Gender, Nationality

StatusSince

Term Primary occupation
expires & Other mandates

Director expertiseBoard
attendanceCommittee attendance
Audit

2024

Chairman of the Boardof Directors of Airbus SE
and Managing Directorof Warburg Pincus
Deutschland GmbH

7/7

2019

2022

Chief Executive Officer
of Airbus SE, Memberof the Board of Directorsof AXA SA

7/7

Independent

2018,
previous
re-election
in 20212024

Chairman and CEO of First
Eastern Investment Groupand member of the Boardof Nomura Holdings Inc.

7/7

Independent

2018,
previous
re-election
in 20212024

Chairman of the Boardof Engie and memberof the Board of AXA SA

7/7

2013,
Ralph D.
previous
CROSBY, Jr.
Independent2023
re-election
74, M, Americanin 2020

Member of the Boardof Directors of Excelitas
Holdings, LP

7/7

2017,
Lord DRAYSON
previous(Paul)
Independent2023
re-election
61, M, British
in 2020

Founder & CEO
of Sensyne Health plc
and Co-Founder &Chairman of Sensyne
Health Holdings Ltd

7/7

Mark
DUNKERLEY
58, M, British

Independent 2020

2023

Member of the Boardof Spirit Airlines Inc.
and Volotea Airlines

7/7

5/5

Stephan
GEMKOW
62, M, German

Independent 2020

2023

Member of theBoard of Amadeus IT
Group and Flughafen
Zürich AG

7/7

5/5

Chairwoman and Chief
Executive Officer of
RATP and member of theSupervisory Board of KPN

7/7

René
OBERMANN58, M, German

2018,
previous
Independent
re-election
in 2021

Guillaume
FAURY**
53, M, French

Executive

VictorCHU
64, M, Chinese /BritishJean-Pierre
CLAMADIEU
63, M, French

2016,
Catherine
GUILLOUARD** Independent previous
2022
re-election
57, F, Frenchin 2019

RNGC

ECSC

5/5

5/5
6/6

AmparoMORALEDA
57, F, Spanish

Independent

2015,
previous
re-election
in 20212024

Member of the Boardof Directors of A.P. Moller –Maersk A/S, CaixaBank SA
and Vodafone PLC

6/7

Claudia
NEMAT**
53, F, German

Independent

2016,
previous
re-election
in 2019

2022

Member of the Board ofManagement of Deutsche
Telekom AG

7/7

CarlosTAVARES***63, M,
Portuguese

Independent

2016,
previous
re-election
in 20192022

Chief Executive Officerof Stellantis N.V.

6/7

3/4
(post
AGM)

1/2
(until AGM)

5/5

5/6

6/6

5/5

5/6

5/5

5/5

Board and Committee meetings in 2021

7

5

5

6

Average attendance rate in 2021

98%

95%

100%

89%

* As of 16 February 2022.
Chair** Proposed for re-election in 2022.
*** Will not seek renewal of his mandate at AGM 2022.
The professional address of all Members of the Board of Directors for any matter relating to Airbus SE is Mendelweg 30, 2333 CS Leiden, The Netherlands.

GlobalBusiness

176

Engineering& Technology

Manufacturing& Production

Airbus / Registration Document 2021

AerospaceIndustry

Finance& Audit

Geopolitical
Economics

DefenceIndustry

Information & DataManagement

Asia

Sustainability

4. Corporate Governance /4.1 Management and Control(ii) Curriculum Vitae and Other Mandates and Duties Performed in any Company by the Membersof the Board of Directors in 2021
The Company has not appointed observers to the Board of Directors. Pursuant to applicable Dutch law, the employees are notentitled to elect a Director. There is no minimum number of shares that must be held by a Director.

René OBERMANNCURRICULUM VITAE

58 years old
Director since 2018,
Re-elected in 2021
Independent

René Obermann is Co-Head of Europe and Managing Director of Warburg Pincus Deutschland GmbH,a leading global private equity firm that he joined in 2015. In addition, he is Deputy Chairman of theSupervisory Board at 1&1 IONOS Holding SE, a leading European web hosting and cloud company, and a
Member of the Board of Directors at Inmarsat, a satellite network provider. René Obermann previously served
as a member of the Board of various companies including Allianz Deutschland AG, Spotify and Telenor.
René worked as CEO of Ziggo BV in The Netherlands in 2014 until the merger with LibertyGlobal’s UPC in
November. Prior to Ziggo, René worked at Deutsche Telekom Group (DT) from 1998 until 2013. After running
DT’s mobile Division (T-Mobile International), he was appointed as CEO of Deutsche Telekom AG in
November 2006, where he remained until December 2013.
René began his career with a business traineeship at BMW AG in Munich. Next, he founded his own
business in 1986: ABC Telekom, a company distributing telecommunication equipment and providing
technical services. After the acquisition of ABC Telekom by Hutchison Whampoa in 1991, René became
Managing Partner of the resulting company: Hutchison Mobilfunk GmbH. Between 1993 and 1998,
he was CEO of that company.
From 2007-2013, René also served as Vice-President of the German Association for Information Technology,
Telecommunications and New Media (BITKOM).

CURRENT MANDATES-- Chairman of the Board of Directors of Airbus SE;-- Co-Head of Europe, Managing Director andHead of Warburg Pincus Deutschland GmbH;-- Deputy Chairman of the Supervisory Boardof 1&1 IONOS Holding SE;-- Member of the Board of Directors of Inmarsat.

4

FORMER MANDATESFOR THE LAST FIVE YEARS-- Chairman of the Supervisory Board of 1&1
IONIS SE (until September 2021);-- Member of the Supervisory Board of Allianz
Deutschland AG (until March 2020);-- Member of the Supervisory Board of Inexio
Informationstechnologie und Telekommunikation
KGaA (until September 2019);-- Member of the Board of Directors of Telenor ASA(until August 2019);-- Member of the Board of Directors ofThyssenKrupp AG (until August 2018);-- Managing Director of Warburg Pincus LLC,
London (until July 2018);-- Member of the Supervisory Board ofCompugroup Medical SE (until December 2017).

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177

4. Corporate Governance /4.1 Management and Control

Guillaume FAURYCURRICULUM VITAE

54 years old
Director since 2019
Executive

Guillaume Faury was appointed Airbus Chief Executive Officer (CEO) in April 2019 and leads the Company’s
Executive Committee. He was previously President of Airbus’ commercial aircraft business, a role he had
held since February 2018.
Additionally, since April 2021, Guillaume is a member of the Board of Directors of AXA SA and since July 2021
he is the President of the Groupement des Industries Françaises de l’Aéronautique et du Spatial (GIFAS),
the French aerospace industries association.
Prior to this, Guillaume was Chief Executive Officer of Airbus Helicopters (2013-2018), where his achievements
included restructuring its manufacturing system and introducing new technologies. Before that, he enjoyeda four-year spell in the car industry at Peugeot (2009-2013), the French automotive manufacturer, rising
to become the Executive Vice-President for research and development and a member of the company’s
management board. He presided over significant advances in Peugeot’s lower-emissions hybrid-engine
technology and the overhaul of the company’s product range, among other accomplishments.
Between 1998 and 2008, he held various leadership positions in engineering, programmes and flight testingin Airbus’ helicopter business, which at the time operated under the name of Eurocopter. He became
Executive-Vice President for Programmes and a member of the Eurocopter Executive Committee, before
being appointed as Executive Director for research and development.
Guillaume began his career in 1992 as a flight-test engineer for the Eurocopter Tiger helicopter in the
Direction Générale de l’Armement (DGA), the French government agency responsible for the development
and purchase of defence systems for the French armed forces.
He graduated from the École polytechnique in Paris in 1990 and, subsequently, from the École nationalesupérieure de l’aéronautique et de l’espace in Toulouse.
Guillaume’s love of flying and aviation dates back to his childhood. He is a qualified light-aircraft pilot andhelicopter flight-test engineer with 1,300 hours of flying experience. He was born in 1968 in Cherbourg,
Normandy, and is married with three children.

CURRENT MANDATES-- Chief Executive Officer, Member of the Boardof Directors and of the Executive Committeeof Airbus SE;-- President of Airbus SAS;-- Member of the Advisory Board of AIRBUS
GROUP VENTURES FUND II, L.P.;-- Vice Chairman of the Board of Directors of
AeroSpace and Defence Industries Associationof Europe;-- President of Groupement des Industries
Françaises Aéronautiques et Spatiales (GIFAS);-- Member of the Board of Directors of AXA SA.

178

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FORMER MANDATESFOR THE LAST FIVE YEARS-- Chairman of the Board of Directors of Airbus
Canada Managing GP Inc. (until December 2021);-- Chairman of the Board of Directors of Airbus US
A220, Inc. (until December 2021);-- Chairman of the Supervisory Board of Airbus
Operations GmbH (until June 2020);-- Chairman of the Board of Directors of Airbus
Corporate Foundation (until April 2020);-- Chairman of the Board of Directors of Airbus(China) Enterprise Management and Services Co.
Limited (until November 2019);-- Member of the Board of Directors of Airbus Africa
and Middle east FZE (until November 2019);-- Member of the Board of Directors of Airbus
Americas, Inc. (until October 2019);-- Member of the Board of Directors of Tallano
Technologies SAS (until September 2019);-- Chairman of the Board of Directors of Airbus
Helicopters España, SA (until July 2018);-- Member of the Supervisory Board of Airbus
Helicopters Deutschland GmbH (until May 2018);-- Managing Director (Directeur Général)of Airbus SAS (until April 2018);-- President of Airbus Helicopters (SAS)(until April 2018);-- President of Airbus Helicopters Holding (SAS)(until April 2018);-- Chairman of the Board of Directors of Airbus
Helicopters, Inc. (until April 2018);-- Member of the Board of Directors of Airbus
Defense and Space, Inc. (until February 2017).

4. Corporate Governance /4.1 Management and Control

Victor Chu
CURRICULUM VITAE

64 years old
Director since 2018,
Re-elected in 2021
Independent

Victor Chu graduated as a lawyer in London. He was admitted to practice law in England and Hong Kong.
After completing his training with Herbert Smith, the City law firm, Victor moved back to Hong Kong in 1982
with Herbert Smith. He has since handled a wide array of mandates in the field of corporate, commercial
and securities law, with special emphasis on China and regional investment transactions. In late 1985,
he founded Victor Chu & Co., which has become one of the leading law firms in Hong Kong.
In 1988, Victor Chu created the First Eastern Investment Group, a Hong Kong based international investment
firm which he leads since then as Chairman and CEO. First Eastern specialises in private equity investments,
venture capital investments and investments in the expansion stage of business development. Victor Chu
was part of the first wave of specialists in the Chinese market. He penetrated China early and built a lotof relationships at the highest level in the country.
Victor Chu has been instrumental in gaining the confidence of major international investors and institutions
ready to co-invest with First Eastern Investment Group. Key projects have included toll roads, water
treatment operations, property and manufacturing industries and FinTech, as well as the launch of Japanesebudget airline Peach Aviation.
Victor Chu is an extremely respected business figure in Hong Kong and Asia. In addition to his businessactivities, he has been very active with several international institutions such as The World Economic
Forum and The Royal Institute of International Affairs. He is also a generous philanthropist in the fieldof environmental protection (having served on Global Ocean Commission and WWF) and education(currently Chair of Council at University College London).

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Chairman and CEO of First Eastern Investment
Group;-- Member of the Board of Grand Harbour
Marina PLC;-- Member of the Board of Camper & Nicholsons
Marina Investments;-- Member of the Board of FE Securities;-- Member of the Board of Peach Aviation;-- Member of the Board of Evolution Securities Asia;-- Member of the Board of Sustainable
Development Capital;-- Co-Chair of the International Business Council(by World Economic Forum);-- Senior Partner of Victor Chu & Co.

4

FORMER MANDATESFOR THE LAST FIVE YEARS-- Alternate Member of the Board of China
Merchants China Direct (until September 2021);-- Member of the Board of China Merchants China
Direct (until April 2020).

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4. Corporate Governance /4.1 Management and Control

Jean-Pierre Clamadieu
CURRICULUM VITAE

63 years old
Director since 2018,
Re-elected in 2021
Independent

Jean-Pierre Clamadieu graduated from École Nationale Supérieure des Mines de Paris before becoming
Chief Engineer of the Corps of Mines. Between 1981 and 1993, he worked mainly for the French Ministryof lndustry and as Technical Advisor to the Minister of Labor.
In 1993, Jean-Pierre Clamadieu joined RhônePoulenc to develop new activities in the field of automobile
pollution control. ln the following years, he held several executive positions in the Rhodia group, as Presidentof Rhodia’s Chemicals in Latin America, President of Rhodia Eco Services, Senior Vice-President for Rhodia
Corporate Purchasing, President of Rhodia Organic Fine Chemicals Division and President of Rhodia
Pharmaceuticals & Agrochemicals Division.
In October 2003, Mr Clamadieu was appointed CEO of Rhodia, and became its Chairman & CEO in
March 2008. Following a merger between Rhodia and the Belgian chemical group Solvay in 2011,
Mr Clamadieu was appointed Chairman of the Executive Committee and CEO of the new Solvay group.
Since his appointment, Jean-Pierre Clamadieu led the integration of the new group and its transformation
into a major player in the field of specialty chemicals and advanced materials, which combines industrial
competitiveness with the quest for sustainable solutions for its clients. His mandate at Solvay SA ended
in March 2019.
Since May 2018, Mr Clamadieu serves as Chairman of the Board of Directors of ENGIE, a French energy
company. He also serves as a Member of the Board of Directors at AXA SA.
Jean-Pierre Clamadieu also promotes an ambitious and coordinated European energy policy.

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Chairman of the Board of ENGIE;-- Member of the Board of Directors of AXA SA;-- Chairman of the Board of Opéra Nationalde Paris.

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FORMER MANDATESFOR THE LAST FIVE YEARS-- Chairman of the Executive Committee and CEOof Solvay SA (until March 2019);-- Member of the Board of Solvay Specialty
Chemicals Asia Pacific Pte. Ltd (Singapore)(until March 2019);-- Director of Cytec Industries Inc.
(until March 2019);-- Director Cytec UK Holding Inc. (until March 2019);-- Member of the Board of Solvay Finances SA(Luxembourg) (until March 2018);-- Member of the Board of Faurecia SA (France)(until February 2018).

4. Corporate Governance /4.1 Management and Control

Ralph Dozier Crosby, Jr.
CURRICULUM VITAE

74 years old
Director since 2013,
Re‑elected in 2020
Independent

Ralph Crosby is a Member of the Board of Directors of Excelitas Holdings, LP, headquartered in Boston.
Previously, he served until May 2021 as an Independent Director of American Electric Power headquarteredin Columbus, Ohio, where he chaired the Human Resources Committee. He was Member of the Executive
Committee of EADS from 2002 -2012 as well as Chairman and CEO of EADS North America from 2002
– 2009. Prior to joining EADS, Mr Crosby was an Executive within Northrop Grumman Corporation,
where he had served as a Member of the Corporate Policy Council with positions including Presidentof the Integrated Systems Sector, Corporate Vice President and General Manager of the company’s
Commercial Aircraft Division and of the B-2 Division. Prior to his industry career, Mr Crosby served as
an officer in the US Army, where his last military assignment was as military staff assistant to the Vice
President of the United States. Mr Crosby is a graduate of the US Military Academy at West Point, andholds Master’s degrees from Harvard University, and the University of Geneva, Switzerland. He is therecipient of the James Forrestal Award from the National Defense Industrial Association and has been
awarded Chevalier of the Légion d’Honneur of France.

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Member of the Board of Directors of Excelitas
Holdings, LP.

FORMER MANDATESFOR THE LAST FIVE YEARS

4-- Member of the Board of Directors of Excelitas
Holdings, LP (until May 2021);-- Member of the Board of Directors andof the Executive Committee of the Atlantic
Council of the United States (until August 2018);-- Member of the Board of Directors (Supervisory
Board) of Serco Group plc (until June 2017).

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181

4. Corporate Governance /4.1 Management and Control

Lord Drayson (Paul)CURRICULUM VITAE

61 years old
Director since 2017,
Re-elected in 2020
Independent

Lord Drayson graduated as an engineer and finished his PhD in 1985 at Aston University. In 1987 he became
Managing Director of The Lambourn Food Company Limited, a subsidiary of the Trebor Group and after
a management buy-out of the Company in 1989, completed its sale to a third party in 1991. The same
year, he founded Genisys Development Limited, a consultancy company for new products development
and management. In 1993, he co-founded PowderJect Pharmaceuticals Plc and led its business as
Chairman and CEO until it was sold to Chiron Corporation, a US company, in 2003. He co-founded Drayson
Racing Technologies LLP in 2007. In 2014 he set up Drayson Technologies Ltd (currently named Sensyne
Health Holdings Ltd), a biometric smart-card company of which he currently is the Chairman and which
subsequently led to the spin-out of Sensyne Health plc, a clinical AI company of which he is the CEO.
Lord Drayson was also elected Chairman of the UK BioIndustry Association in 2001 and was appointed
to the House of Lords and a Member of the Science and Technology Committee of the House of Lords in2004. He was then appointed Parliamentary under Secretary of State for Defence Procurement in 2005
and became Minister of State for Defence Equipment & Support in 2006 and Minister of State for Science& Innovation in 2008.

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Founder and CEO of Sensyne Health plc;-- CEO of Sensyne Health Holdings Ltd;-- Chairman of Freevolt Group Ltd;-- Co-founder and Trustee of the Drayson
Foundation;-- Science Entrepreneur in Residence of Magdalen
College, Oxford;-- Supernumerary Fellow of St. John’s College,
Oxford;-- Member of Her Majesty’s Privy Council;-- Member of House of Lords;-- Honorary Fellow of the Academy of Medical
Sciences.

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FORMER MANDATESFOR THE LAST FIVE YEARS-- Director of Drayson Racing Technologies Limited(until September 2021);-- Member of Project of the “Oxfordshire Innovation
Engine” Project (until February 2018);-- Trustee and External Member of Council at
University of Oxford (until December 2017);-- Chairman of the Executive Committee
at OUC (Oxford University Clinic) Centresof Excellence LLP (until December 2017);-- Non-Executive Director and Board Memberof the Royal Navy (until November 2017).

4. Corporate Governance /4.1 Management and Control

Mark DUNKERLEYCURRICULUM VITAE

58 years old
Director since 2020
Independent

Mark Dunkerley received his B.S. in Economics from The London School of Economics and Political Scienceand his M.S. in Air Transport Management from Cranfield University in the UK.
Between 1989-1999, he held various senior positions at British Airways Plc. in a corporate strategy capacity
as well as in regional roles in Europe and the USA encompassing notably the management of sales,
marketing, customer services, operations, finance, industrial relations, human resources and alliances.
Thereafter, Mr Dunkerley successively served as President and COO of Worldwide Flight Services, a leading
multinational ground handling business, as Executive Vice-President at the San Francisco-based aviation
consultancy firm, Roberts Roach & Associates and as COO at Sabena Airlines Group.
In 2002, Mark Dunkerley joined Hawaiian Airlines, first as President and COO and from 2005 as President
and CEO (including of the parent company, Hawaiian Holdings, Inc.) where he led the transformation of thecompany from bankruptcy into one of the world’s most successful airlines from which he retired in 2018.
Mr Dunkerley currently serves as Non-Executive Director of Spirit Airlines Inc., a NASDAQ listed US airline
and of Volotea Airlines, a privately-owned low-cost airline operating in Europe.

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Member of the Board of Directors of Spirit
Airlines Inc.;-- Member of the Board of Directors of Volotea
Airlines;-- Member of the Board of Directors of Smithsonian
Institution, National Air & Space Museum.

4

FORMER MANDATESFOR THE LAST FIVE YEARS-- President, CEO and Board Member ofthe Board of Directors of Hawaiian Airlines Inc.
(until March 2018);-- President, CEO and Board Member of theBoard of Directors of Hawaiian Holdings Inc.
(until March 2018);-- Member of the Board of Governors of IATA
(until March 2018);-- Member of the Board of Directors of Airlinesof America (until March 2018);-- Member of the Board of Directors of Hawaii
Chamber of Commerce and Business
Roundtable (until March 2018);-- Member of the Board of Directors of Outrigger
Enterprises (until January 2017).

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4. Corporate Governance /4.1 Management and Control

Stephan GEMKOWCURRICULUM VITAE

62 years old
Director since 2020
Independent

Stephan Gemkow (1960) studied business administration at the University of Paderborn and at the St. Olaf
College in Minnesota, USA.
From 1988 to 1990 he worked as a management consultant at BDO Deutsche Warentreuhand AG in
Hamburg.
Between 1990 and 2012, he held various management positions at Deutsche Lufthansa AG in Frankfurt andWashington, such as Sales Manager, Head of Investors Relations, Head of Corporate Finance and Human
Resources for the Cargo Division which he accompanied through a major reorganisation. From 2006 to
2012, Mr Gemkow served as Chief Financial Officer and a member of the Management Board of Deutsche
Lufthansa AG which he successfully lead through growth, global expansion as well as the financial crisis.
In 2012, he took the position of Chief Executive Officer and Chairman of the Board of Directors of Franz
Haniel & Cie, one of the largest family-owned investment holdings, based in Germany, where he drove thecompany through important restructuring and investment phases in a complex stakeholder management
context and where he remained until June 2019.
Mr Gemkow furthermore served as Chairman on the Supervisory Boards of TAKKT AG and Celesio AG(now known as McKesson Europe AG), and as member of the Supervisory Board of Evonik Industries AG.
Stephan Gemkow currently holds positions as non-executive member in the Board of Directors of Amadeus
IT Group, Flughafen Zürich AG and C.D. Waelzholz GmbH & Co. KG.
Stephan Gemkow currently serves as senior advisor to BNP Paribas Group Germany since May 2021.

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Member of the Board of Directors of Amadeus IT
Group S.A.;-- Member of the Board of Directors of Flughafen
Zürich AG;-- Member of the Board of Directors of C.D.
Waelholz GmbH & Co. KG.

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FORMER MANDATESFOR THE LAST FIVE YEARS-- Member of the Board of Directors of JetBlue
Airways Corporation (until March 2020);-- CEO and Chairman of the Board of Directorsof Franz Haniel & Cie. GmbH (until June 2019);-- Chairman of the Supervisory Board of TAKKT AG(until May 2019);-- Member of the Supervisory Board of Evonik
Industries AG (until May 2017).

4. Corporate Governance /4.1 Management and Control

Catherine Guillouard
CURRICULUM VITAE

57 years old
Director since 2016,
Re‑elected in 2019
Independent

Catherine Guillouard began her career in 1993 at the Ministry of Economy in the French Treasury working
for the department in charge of the Africa – CFA zone and later in the Banking Affairs Department.
She joined Air France in 1997 as IPO Senior Project Manager. She was subsequently appointed Deputy
Vice-President Finance Controlling in 1999, Senior Vice-President of Flight Operations in 2001, Senior
Vice-President of Human Resources and Change Management in 2003 and Senior Vice-President of
Finance in 2005. In September 2007, she joined Eutelsat as Chief Financial Officer and member of theGroup Executive Committee.
Ms Guillouard joined Rexel in April 2013 as Chief Financial Officer and Group Senior Vice-President.
Between May 2014 and February 2017 she has been Deputy Chief Executive Officer of Rexel. On 2 August
2017, Ms Guillouard was appointed Chairwoman and Chief Executive Officer of RATP Group, the thirdlargest urban transportation operator in the world with nearly 16 million daily passengers in 14 countries
and 4 continents, a workforce of nearly 69,000 employees worldwide and a revenue of € 5.5 billion in
2020. In April 2020, Ms Guillouard became a member of the Supervisory Board of KPN, one of the leading
telecommunications and IT providers, market leader in the Netherlands.
Catherine Guillouard, born in 1965, is a graduate of the Institute of Political Studies of Paris and the École
Nationale d’Administration and she has a PhD of European laws (Panthéon-Sorbonne).

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Chairwoman and Chief Executive Officer
of RATP Group;-- Chairwoman of the Supervisory Boardof RATP DEV;-- Member of the Supervisory Board of KPN.

4

FORMER MANDATESFOR THE LAST FIVE YEARS-- Member of the Supervisory Board of Systra(until July 2021);-- Member of the Board of Directors of ENGIE(until May 2019);-- Deputy Chief Executive Officer of Rexel(until February 2017).

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185

4. Corporate Governance /4.1 Management and Control

María Amparo Moraleda Martínez
CURRICULUM VITAE

57 years old
Director since 2015,
Re-elected in 2021
Independent

Amparo Moraleda graduated as an industrial engineer from the ICAI (Escuela Técnica Superior de Ingeniería
Industrial) Madrid and holds a PDG from IESE Business School in Madrid. Between January 2009 andFebruary 2012, she was Chief Operating Officer of Iberdrola SA’s International Division with responsibility
for the United Kingdom and the United States. She also headed Iberdrola Engineering and Construction
from January 2009 to January 2011. Previously, she served as General Manager of IBM Spain and Portugal(2001-2009). In 2005 her area of responsibility was extended to encompass Greece, Israel and Turkey as
well. Between 2000 and 2001, she was executive assistant to the Chairman and CEO of IBM Corporation.
From 1998 to 2000, Ms Moraleda was General Manager of INSA (a subsidiary of IBM Global Services).
From 1995 to 1997, she was HR Director for EMEA at IBM Global Services and from 1988 to 1995 held
various professional and management positions at IBM España.
Ms Moraleda is also a member of various boards and trusts of different institutions and bodies. She ismember of the academy of “Ciencias Sociales y del Medio Ambiente” of Andalucía (Spain), member ofthe Board of Trustees of MD Anderson Cancer Centre in Madrid, CurArte Foundation in Madrid, memberof the International Advisory Board of Instituto de Empresa Business School and member of the Board of
the global alumni association of IESE Business School. In May 2017 she was inducted as a member of the
Spanish Royal Academy of Economic and Financial Sciences.

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Member of the Board of Directors of Vodafone plc;-- Member of the Board of Directors of
Caixabank SA;-- Member of the Supervisory Board of CSIC(Consejo Superior d’Investigaciones Cientificas);-- Member of the Advisory Board of SAP Spain;-- Member of the Advisory Board of Spencer Stuart
Spain;-- Member of the Board of Directors of Airbus
Foundation;-- Member of the Board of Trustees of Vodafone
Foundation;-- Member of the Board of Directors of A.P.
Møller - Mærsk A/S.

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FORMER MANDATESFOR THE LAST FIVE YEARS-- Member of the Board of Directors of Solvay SA(until May 2021);-- Member of the Board of Directors of Faurecia SA(until October 2017);-- Member of the Advisory Board of KPMG Spain(until June 2017).

4. Corporate Governance /4.1 Management and Control

Claudia Nemat
CURRICULUM VITAE

53 years old
Director since 2016,
Re‑elected in 2019
Independent

Claudia Nemat has been a member of Deutsche Telekom’s Board of Management since 2011. She was
responsible for the Board area Europe and Technology until the end of 2016 and has been responsible
for Technology and Innovation since January 2017.
Before joining Deutsche Telekom AG, Claudia Nemat spent 17 years working McKinsey&Company where
she was elected Partner in 2000, and Senior Partner in 2006. She co-led McKinsey’s global Technology
Sector and had a number of interim management roles with global IT clients, ensuring disaster recoveryof large IT projects, and acting as interim CEO.
She focuses on digital transformation, the impact of new technologies like artificial intelligence on businessmodels, our work and lives, technology and product innovation, as well as IT transformation, security
and crisis management.
She has worked in different European countries as well as the United States and was a member of theSupervisory Board of Lanxess for several years. Since 2016, she has been a member of the Board of
Airbus, as well as the Supervisory Board of Airbus Defence.
Claudia Nemat studied physics at the University of Cologne and taught at the Institute of Mathematics
and Theoretical Physics.

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Member of the Board of Directors of Airbus
Defence and Space GmbH;-- Member of the Management Board of Deutsche
Telekom AG;-- Chairperson of the Supervisory Boardof Deutsche Telekom IT GmbH;-- Member of the University Council of Universityof Cologne;-- Member of the Executive Committee of Deutsche
Gesellschaft für Auswärtige Politik e.V.;-- Member of the Supervisory Board of T-Systems
International GmbH;-- Vice-Chairwoman of the Supervisory Boardof Deutsche Telekom Security GmbH.

4

FORMER MANDATESFOR THE LAST FIVE YEARS-- Chairperson and Member of the Board of Buyln(related to Deutsche Telekom)(until January 2017);-- Member of the Board of OTE (related to Deutsche
Telekom) (until January 2017).

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4. Corporate Governance /4.1 Management and Control

Carlos Tavares
CURRICULUM VITAE

63 years old
Director since 2016,
Re‑elected in 2019
Independent

188

Carlos Tavares is a graduate of École Centrale Paris. He held a number of different positions with the Renault
Group from 1981 to 2004 before joining Nissan. In 2009, he was appointed Executive Vice-President,
Chairman of the Management Committee Americas and President of Nissan North America.
He was named Group Chief Operating Officer of Renault in 2011. Since 1 January 2014, he has joined theManaging Board of PSA Peugeot Citroën. He was named Chairman of the Managing Board since 31 March
2014. On 16 January 2021, Peugeot SA merged into Stellantis N.V. and Mr Tavares was appointed as
Chief Executive Officer of Stellantis N.V.
Mr. Tavares does not seek renewal of his mandate as Member of the Board of Directors of Airbus SE at
the AGM 2022.

CURRENT MANDATES-- Member of the Board of Directors of Airbus SE;-- Chief Executive Officer of Stellantis N.V.

Airbus / Registration Document 2021

FORMER MANDATESFOR THE LAST FIVE YEARS-- Chairman of the Managing Board of Peugeot SA(until merger January 2021);-- Member of the Board of Directors of Total SA(until May 2020);-- Director of Faurecia SA (until October 2018).

4. Corporate Governance /4.1 Management and Control

There are no changes in the composition of the Board in the course of 2021.
CHANGES IN THE BOARD COMMITTEE IN THE COURSE OF 2021
Until 2021 AGM

From 2021 AGM(1)Committee

Name

StatusAudit Committee

Mr. Ralph D. CROSBY, Jr.

MemberEthics,Sustainability& Compliance
Committee

N/A

Name

StatusN/A

Mr. Ralph D. CROSBY, Jr.

Member(1) Further information on the Committee members can be found in the above tables “Airbus SE Board of Directors until AGM 2022” and “Changes in the Board Committee
composition in the course of 2021”.

Independent Directors
The Independent Directors appointed pursuant to the criteria of
independence set out above are René Obermann, Ralph CrosbyJr., Catherine Guillouard, Victor Chu, Lord Paul Drayson, Maria
Amparo Moraleda Martinez, Claudia Nemat, Carlos Tavares,
Jean-Pierre Clamadieu, Mark Dunkerley and Stephan Gemkow.

Prior Offences and Family Ties

the new A350 Freighter derivative in July 2021. In addition, aparticular focus was put on the aerostructure assembly industrial
restructuring initiative.

To the Company’s knowledge, none of the Directors (in either theirindividual capacity or as Director or senior manager of any of theentities listed above) has been convicted in relation to fraudulent
offences, been the subject of any bankruptcy, receivership or
liquidation, or companies put into administration nor been thesubject of any official public incrimination and/or sanction by astatutory or regulatory authority, nor been disqualified by a court
from acting as a Member of the administrative, management
or supervisory bodies of any issuer or conduct of affairs of any
company, during at least the last five years. As of the date of thisdocument, there are no family ties among any of the Directors.

With regards to Helicopters, the Board focused its review on theoverall market situation, the developments in military projects
and on urban air mobility.

(iii) Operation of the Board of Directors in 2021

Throughout the year, the Board reviewed the Company’s financial
results and, its forecasts, as well as maintaining an emphasis on
both ERM and internal controls.

Board of Directors Meetings
Seven Board of Directors (the “Board”) meetings were held in
2021. The average attendance rate at these meetings was 98%.
In addition, informal meetings and ad hoc calls took place on
specific matters, such as Enterprise Risk Management (“ERM”)
and certain programmes and the Board was regularly informedof developments through reports from the CEO, including theevolution of the COVID-19 situation at Airbus, the impact of thegeopolitical developments and the progress made on major
projects, strategic plan implementation and operational activities.
In 2021, an important part of the Board’s activities remained
directly or indirectly related to the COVID-19 crisis, notably
looking into the definition of the post COVID-19 priorities. The
Board continued to review and discuss the operational andcommercial situation of programmes, as well as the overall
financial situation of the Company. In order to ensure thenecessary financial flexibility in view of potential and significant
cash requirements related to the COVID-19 crisis, the Board
decided that no dividend proposal would be submitted to the2021 AGM as it was the case in 2020.
In relation to Commercial Aircraft, the Board’s activities comprisedinter alia regular reviews of market developments, sales, supply
chain matters, production status and ramp-up planning, as
well as discussions and decisions concerning the launch of4

For Defence and Space, the Board activities concerned notably
the progress of the Future Combat Air System and Eurodrone
programmes, and the challenges and opportunities of theCompany in the Space businesses.

The Board dedicated a full session in 2021 to the reviewing of
key aspects of the Company’s strategy, (and decided to carryout additional and focused strategy sessions for the Defence
and Space division in 2022). During this strategy off-site Board
meeting, held in Airbus Helicopters’ premises in Donauworth,the Board also visited the industrial site including the Urban Air
Mobility development centre, the H135 and H145 assembly lines,
and the aircraft doors production site.

The Board also reviewed and discussed a number of sustainability
matters of major importance to the Company such as safety,
notably with the formalisation of a protocol for the sharing ofproduct safety-related information with the Board. Anotherexample is the Greenhouse Gas Scope 3 emissions disclosure
which was included, for the first time, in the 2020 Non-Financial
Statement.
Human capital matters such as required skills and competences,
remuneration and retention schemes, employer attractivenessetc. were frequently addressed or discussed. The Board worked
on succession planning of Board Members in general, preparedspecifically for the appointment of a new non-Executive Director
in 2022 and discussed a talent pipeline for future changes within
the Board with a strong focus on improving (gender) diversity. In
2021, the Board of Directors also played a key role in management
succession planning resulting in the implementation of a numberof changes within the Executive Committee of the Company,
including the nomination of Sabine Klauke, Chief Technical
Officer, Catherine Jestin, EVP Digital and Transformation
Management and Alberto Gutierrez, Chief Operating Officer for
the Commercial Aircraft business. Following these changes threeof the Executive Committee’s 12 members are female. In parallel,

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4. Corporate Governance /4.1 Management and Control

the Board performed regular talent reviews, including in person
meetings with a number of talents identified as part of the top
management succession planning.
Following the settlements reached with the French, UK and
US authorities in January 2020 in relation to the Serious Fraud
Office / Parquet National Financier / US Department of Justice /US Department of State investigations, the Board of Directors
and its Ethics, Compliance and Sustainability Committee
remained fully committed and provided full support throughout
the year to the post-settlement activities. The Board continued(and will continue) to pay close attention to the Company’s active
engagement with its shareholders, so that Airbus’ approach to
governance, compliance and sustainability is well understoodand reflects shareholders’ expectations to the extent possible.

Board Evaluation 2021
The Board of Directors implemented a continuous evaluation
process based on a three-year cycle. As part of this process,every three years, a formal evaluation of the functioning of theBoard of Directors and its Committees is conducted with theassistance of a third-party expert. In the year succeeding suchan outside evaluation, the Board of Directors performs a selfevaluation and focuses on the implementation of the improvement
action plan resulting from the third-party assessment. In theintervening second year, the General Counsel, being also theSecretary of the Board, issues a questionnaire and consults with
Board Members to establish an internal evaluation which is thendiscussed with them.
Following the decision in 2020 to extend the Board Review cycle
for one more year, due to the changes to the Board during 2019and 2020, the year 2021 was the beginning of a new threeyear cycle. The review was carried out between September
and December 2021 by an external advisor, Korn Ferry, basedon an extensive questionnaire and detailed interviews with each
Director. The questionnaire covered Board and Committee
processes, Board composition and structure, culture anddynamics, the relationship between the Board and Management,
the role of the Chairman, the contribution of the Directors, thestrategic alignment of the Board and the value it adds.
The review confirmed the Board’s overall strong performance.
Directors were found to be committed, experienced andof high calibre, and the Board to be well supported by the
Corporate Secretary. Furthermore, the Board is continuing todevelop and enhance its capabilities. Its membership offersa diverse mix of experience, business leadership, functional
and technical experience, and nationality. The relationships
between the Directors themselves and between the Directors
and Management have created an environment of constructive
challenge as well as direct and straightforward interaction anddebate, and the culture is collegiate and collaborative. The
Chairman is proactively leading the strategic agenda of the Boardand promoting a collaborative culture. He has developed an
open, transparent and effective working relationship with the
CEO that has been instrumental in improving the impact of theBoard. All the Committees are operating well, integrate properlywith the governance accountability of the Board, and are led byeffective and experienced Committee Chairs.
Notwithstanding this favourable feedback, the review identified
some opportunities for the Board to further improve its
effectiveness and contribution. These were primarily in the areasof rebalancing the agenda to provide greater scope for strategic
debate, improving analysis provided to the Board in support of190

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strategic decision making and portfolio management, including
meeting materials, and maximising the value contributed by
the Board through deeper engagement and alignment withManagement. Also highlighted was the value of providing
the Board with access to deeper insights across a range of
topics, including geopolitics, technological developments,
energy transition and industrial transformation, ESG issues,
the competitive environment and management succession
planning. Finally, continuous efforts should be made to enhancethe diversity of the Board across multiple perspectives in order
to embrace the challenges of the future.

4.1.1.2 Board Committeesa) The Audit Committee
The Audit Committee has four (4) Members and is chaired by
an Independent Director who is not the Chair of the Boardof Directors or a current or former Executive Director of theCompany. The Chair of the Audit Committee shall be, andthe other members of the Audit Committee may be, financial
experts with relevant knowledge and experience of financial
administration and accounting for listed companies or otherlarge legal entities.
Pursuant to the Board Rules, the Audit Committee,
which is required to meet at least four times a year, makes
recommendations to the Board of Directors on the approvalof the annual financial statements and the interim accounts(Q1, H1, Q3), as well as the appointment of external auditors
and the determination of their remuneration. Moreover, theAudit Committee has responsibility for verifying and making
recommendations to the effect that the internal and external
audit activities are correctly directed, that internal controls are
duly exercised and that these matters are given due importanceat meetings of the Board of Directors. Thus, it discusses withthe auditors their audit programme and the results of the auditof the financial statements, and it monitors the adequacy of theCompany’s internal controls, accounting policies and financial
reporting. It also oversees the operation of the Company’s ERM
system and keeps a strong link to the Ethics, Compliance andSustainability Committee. For further details in this regard, see“– 4.5: Enterprise Risk Management System”. Please refer toAnnex E of the Board Rules for a complete list of responsibilitiesof the Audit Committee.
The Chairman of the Board of Directors and the CEO are invited
to the Audit Committee meetings. The CFO and the Head of
Accounting Record to Report are requested to attend meetings
to present management proposals and to answer questions.
Furthermore, the Head of Corporate Audit & Forensic and theChief Ethics & Compliance Officer are requested to report to the
Audit Committee on a regular basis.
In 2021, this Committee met five times with an average attendance
rate of 95%. It fully performed all of the duties and discussed allof the items described above. In particular, it performed reviewsof internal controls, corporate audit (including major findings andaudit plan for 2021), accounts (i.e. 2020 full year accounts, 2021
Q1, H1 and Q3 accounts, specific provisions and accounting
items, operative planning and forecasts) and independence of
external auditors. In addition, regular ERM, legal and complianceupdates were presented to the Audit Committee and discussed
in meetings. The inclusion of Airbus within the German DAX 40
was also addressed.

4. Corporate Governance /4.1 Management and Controlb) The Ethics, Compliance and Sustainability
Committeec) The Remuneration, Nomination
and Governance Committee

To reinforce the role and involvement of the Board of Directors
on sustainability-related topics, the remit of the former Ethics& Compliance Committee established in 2017 was extended
to sustainability matters in July 2020. The Committee wasrenamed the Ethics, Compliance and Sustainability Committee(“EC&S Committee” or “ECSC”) and the Board Rules have been
amended accordingly. The main mission of the EC&S Committee
is to assist the Board of Directors in overseeing the Company’s
culture and commitment to ethical business, integrity andsustainability. The EC&S Committee is empowered to monitor
the Company’s Ethics & Compliance programme, organisationand framework in order to make sure that the Company’s Ethics& Compliance governance is effective (including all associatedinternal policies, procedures and controls). This includes theareas of money laundering and terrorist financing, fraud, bribery
and corruption, trade sanctions and export control, data privacy,
procurement and supply chain compliance and anti-competitive
practices.

Pursuant to the Board rules, besides its role described in
section 4.1.1 above, the RNGC consults with the Chairman
and the CEO with respect to proposals for the appointmentof the members of the Executive Committee, and makes
recommendations to the Board of Directors regarding theappointment of the Secretary to the Board of Directors. The
RNGC also makes recommendations to the Board of Directors
regarding succession planning (at Board of Directors, Executive
Committee and Senior Management levels), remuneration
strategies and long-term remuneration plans. Furthermore, the
RNGC oversees contractual matters in relation to the membersof the Board and the Executive Committee, including the terms
and conditions of the relevant contracts, and the preparationof the remuneration policy for approval by the Board. The rules
and responsibilities of the RNGC have been set out in the Board
rules.

The EC&S Committee is also empowered to oversee theCompany’s sustainability strategy and effective governance andensure that sustainability related topics are taken into accountin the Company’s objectives and strategy.
The EC&S Committee makes recommendations to the Boardof Directors and its Committees on all Ethics, Compliance or
Sustainability-related matters, and is responsible for providing
to the Audit Committee any necessary disclosures on issues or
alleged ethical and compliance breaches that are financial andaccounting-related. The EC&S Committee maintains a reporting
line with the Chief Ethics & Compliance Officer, who is requested
to provide periodic reports on its activities.
The Chairman of the Audit Committee and the Chairman of the
RNGC are members of the EC&S Committee. Unless otherwise
decided by the EC&S Committee, the CEO and the Chairman of
the Board of Directors are invited to attend the meetings. From
time to time, independent external experts are also invited toattend EC&S Committee meetings.
The EC&S Committee is required to meet at least four times ayear. In 2021, the EC&S Committee met in total six times withan average attendance rate of 89%. All of the above described
items were discussed during the meetings and the EC&S
Committee fully performed all the above described duties. In
particular, following the settlements reached with the French,
UK and US authorities in January 2020 in relation to the Serious
Fraud Office / Parquet National Financier / US Department ofJustice / US Department of State investigations, the Committee
performed regular reviews of the post settlements activities(including compliance and export control updates). Notably,
regular updates on the activities of the ITAR Special Compliance
Officer, appointed in 2020 under the Consent Agreement with
the US State Department and on the monitoring of the Agence
Française Anti-Corruption (AFA) were provided. The Committee
also held discussions on the management of data privacy at
Airbus. Regarding Sustainability, the EC&S Committee discussed
the Scope 3 disclosure included for the first time in the 2020
Non-Financial Statement and reviewed the 2021 key priorities,
Sustainability roadmaps, dashboard and KPIs. In addition,
the EC&S Committee reviewed stakeholders’ expectations on
Sustainability issues including climate and reporting standards.

4

In addition, the RNGC reviews the Company’s top talent,
discusses measures to improve engagement and to promote
diversity, as well as reviewing the remuneration of the Executive
Committee members, the Long-Term Incentive Plans (“LTIP”),
and the variable pay for the previous year.
Finally, the RNGC performs regular evaluations of the Company’s
corporate governance and makes proposals for changes to theBoard Rules or the Articles of Association.
Unless otherwise decided, the Chairman of the Board of Directors
and the CEO are invited to attend meetings of the RNGC. The
Chief Human Resources Officer (“CHRO”) is requested to attend
meetings to present management proposals and to answer
questions. The CEO leaves the meetings when the RNGC
discusses his / her remuneration or personal situation.
Pursuant to the Board Rules, the Chair of the RNGC automaticallyfulfils the function of “Lead Independent Director”. In this rolehe / she is responsible for (i) replacing the Chairman in his / herabsence at meetings of the Board of Directors, (ii) organising theannual appraisal of the Chairman’s performance by the Boardof Directors and (iii) acting as an intermediary for and between
the other Directors when necessary.
The RNGC is required to meet at least four times a year. In 2021,
it met five times with an attendance rate of 100%. It discussed
all of the above described items during the meetings and it fully
performed all of the above described duties. In particular, the
RNGC further discussed the adaptation of the remuneration
strategy to properly address the emerging risks of attracting
and retaining key talent. The RNGC also continued to work on
a 360 feedback exercise for the CEO and to perform reviewsof the top management succession plan and, more generally,of key talents. Changes within the Executive Committee werediscussed in meetings and implemented in 2021 (see abovein the Board of Directors operations section). The Committee
held regular discussions on diversity, including gender diversity,in particular at Board and top management levels. The RNGC
also worked on the Board of Directors succession plan, with astrong focus on gender diversity.

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4. Corporate Governance /4.1 Management and Control

4.1.1.3 The Executive Committeea) Nomination and Composition
The Executive Committee of Airbus (the “Executive Committee”)
is chaired by the Chief Executive Officer and its members areappointed on the basis of their performance of their individual
responsibilities as well as their respective contribution to theoverall interest of Airbus.
The CEO proposes all of the Members of the Executive Committee
for approval by the Board of Directors, after consultation with(i) the Chairman of the RNGC and (ii) the Chairman of the Boardof Directors, applying the following principles:–– the preference for the best candidate for the position;–– the maintenance, in respect of the number of Members of
the Executive Committee, of the observed balance among
the nationalities of the candidates in respect of the locationof the main industrial centres of the Company (in particularamong the nationals of France, Germany, Spain and the United
Kingdom, where these main industrial centres are located);and–– at least two-thirds of the Members of the Executive Committee,
including the CEO and the CFO, being EU nationals andresidents.
The Board of Directors determines, by simple majority vote,whether to approve all of the Members of the Executive
Committee as proposed by the CEO.

b) Role of the CEO and Executive Committee
The CEO is responsible for executing the strategy, as approvedby the Board of Directors, and for managing the day-to-day
operations of the Company’s business with the support of the
Executive Committee (“EC”) and its executive leadership teamthrough Executive Leadership Meetings (“ELM”) in which the
EC members participate. The CEO shall be accountable for theproper execution of the day-to-day operations of the Company’sbusiness.
ELMs are held on a regular basis and aim at advising the CEO on
his day-to-day role, as well as ensuring that EC members reportback on business progress, updates and concerns, addressing
Company-wide topics including corporate matters, approving
all vacancies and promotions above certain levels.

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The EC further supports the CEO in performing these tasks. Under
the leadership of the CEO, the EC is responsible for businessstrategy as well as organisational matters and managementof the business, monitoring key projects / products and major
investments, overseeing performance targets, whether it befinancial, individual, programmes or support functions, outlining
policies to motivate, recruit and retain employees. It is also
accountable for regulatory and statutory obligations along with
policy matters, communications and market disclosures. It isalso the forum where the information or requests for approvaldestined for the Board of Directors are discussed and approved.
The EC members shall jointly contribute to the overall interests of
the Company, in addition to each member’s individual operationalor functional responsibility within the Company.
The EC comprises the heads of the Divisions and key functionsof the Company.
The CEO is the only Executive Director within the Board of
Directors and represents the Company on the Board of Directors.
Depending on the topic, he usually asks the responsible EC
member to join him at Board meetings to present the financials(CFO), programme / product topics (Division heads), HR matters(CHRO) or any other topic where a specialist is needed. Thisapproach allows the Board Members to get to know the EC
members and equips them to make judgements when it comesto decisions about key positions.

c) The Executive Committee in 2021
The EC comprises the heads of the Divisions and key functions of
the Company. The CEO is the only Executive Director within the
Board of Directors and represents the Company on the Board of
Directors. Depending on the respective topic, he usually asks the
responsible EC Member to join him in the Board for presenting
the financials (CFO), programme / product topics (Division head),HR matters (CHRO) or any other topic where a specialist isneeded. This approach allows Board Members to get to know
the EC members and equips them to make judgements whenit comes to decisions about key positions.
The Executive Committee met four times during 2021.

4. Corporate Governance /4.1 Management and Control

COMPOSITION OF THE EXECUTIVE COMMITTEE AS OF 31 DECEMBER 2021
Name

Start of term

Principal Occupation

Guillaume Faury

2018

Chief Executive Officer Airbus

Dominik Asam

2019

Chief Financial Officer

Thierry Baril2012

Chief Human Resources Officer

Bruno Even

2018

Chief Executive Officer Airbus Helicopters

Alberto Gutiérrez

2021

Chief Operating Officer

John Harrison

2015

General Counsel

Catherine Jestin

2021

Executive Vice President Digital and Information Management

Julie Kitcher

2019

Executive Vice-President Communications and Corporate Affairs

Sabine Klauke

2021

Chief Technical Officer

Philippe Mhun

2019

Executive Vice-President Programmes and Services

Christian Scherer

2019

Chief Commercial Officer and Head of Airbus International

Michael Schöllhorn

2019

Chief Executive Officer Airbus Defence and Space

Antoine Bouvier

2019

Head of Strategy, Mergers & Acquisitions and Public Affairs

C. Jeffrey Knittel

2021

Chairman and Chief Executive Officer Airbus Americas

George Xu

2018

Chief Executive Officer Airbus China

4

Note: Status as per 31 December 2021. The professional address of all Members of the Executive Committee for any matter relating to Airbus is Mendelweg 30, 2333 CS Leiden,
The Netherlands.

Guillaume Faury – Chief Executive Officer Airbus

Thierry Baril – Chief Human Resources Officer(see above under “– 4.1.1.1 Board of Directors”)

Thierry Baril was appointed Chief Human Resources Officer of
Airbus on 1 June 2012.

Dominik Asam – Chief Financial Officer
Dominik Asam is Chief Financial Officer (CFO) of Airbus and a
Member of the Executive Committee.
Dominik Asam joined Airbus in April 2019 from Munich-based
Infineon Technologies AG, where he had been CFO since 2011.
During eight years he was responsible for functions includingGroup Controlling, IT, Treasury, Investor Relations, Compliance& Risk Management, Export Control and Sustainability andBusiness Continuity.
Previously, Dominik Asam was Head of Group Controlling at
RWE AG in 2010.
Between 2005 and 2010 he held various positions at Siemens AG
such as CEO of Siemens Financial Services and Corporate VicePresident and Treasurer.
From 2003 to 2005, Asam headed Investor Relations, Mergers &Acquisitions and Strategy at Infineon Technologies.
Dominik Asam began his professional career in 1996 in theInvestment Banking Division of Goldman Sachs Inc. withpostings in Frankfurt, London and New York.
A graduate in Mechanical Engineering from the Technical
University of Munich and the École Centrale Paris, Dominik
Asam holds a Master’s in Business Administration from INSEAD(European Institute of Business Administration).

Thierry Baril joined Airbus Commercial Aircraft in 2007 as
Executive Vice-President, Human Resources, and Memberof the Airbus Commercial Aircraft Executive Committee, withresponsibility for defining and implementing a company-wide
Human Resources strategy, enhancing integration and employee
engagement. He oversaw the development of key skills andcompetences to support business growth and greater internal
mobility. One of his main achievements was the transformationof the Company in the areas of leadership culture and diversity,
having played a key role in the implementation of “Power8” andAirbus’ internationalisation strategy.
Prior to this, Thierry Baril was Executive Vice-President Human
Resources at Eurocopter – now Airbus Helicopters – and memberof the Eurocopter Executive Committee from January 2003.
In this position, Thierry Baril managed the Company’s Human
Resources activities globally, including the implementation of
Human Resources policies across Eurocopter’s European sites
and its 15 subsidiaries worldwide. He was instrumental in theimplementation of “Vital”, a programme which transformed
Eurocopter as a business.
Thierry Baril started his career in 1988 as Deputy Human
Resources Director at Boccard SA, and transferred to Laborde& Kupfer-Repelec, a subsidiary of GEC ALSTHOM, as Human
Resources Manager in 1991.
From 1995, Thierry Baril held roles as Human Resources Directorof the Alstom Energy Belfort site and Vice-President of Human
Resources of the Alstom Energy Group.

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Following on from his experience at Alstom Energy, in 1998
Thierry Baril became Managing Director of Human Resources
for Europe for GE (General Electric) at their Belfort Headquarters,
followed by Vice-President of Human Resources at Alcatel
Space’s Headquarters in Toulouse from 2000.
Thierry Baril holds a University Degree in Personnel Management(Diplôme Universitaire de Technologie en Gestion des Entreprises
et des Administrations), as well as a Business Page 2 of 2 Degreein Human Resources Management and Development from theInstitut de Gestion Sociale (IGS) in Paris.
Thierry Baril was born in February 1965 in Suresnes, France. In
2007, he was appointed as a Chevalier de l’Ordre National duMérite and was further commended as a Chevalier de l’Ordre
National de la Légion d’Honneur in 2012. In 2013, he was named
HR Director of the year by Hudson, Le Figaro Economie andCadremploi Group.

Bruno Even – Chief Executive Officer –Airbus Helicopters
Bruno Even was appointed Chief Executive Officer (CEO) of
Airbus Helicopters as of 1 April 2018. He is a Member of the
Airbus Executive Committee.
He joined the Company from Safran, where he held various
management positions at the Helicopter Engines and Electronic& Defence businesses. Since 2015, he served as Chief Executive
Officer of Safran Helicopter Engines (ex-Turbomeca). Prior tothat position, he was CEO of Safran Electronics & Defence (exSagem).
Bruno Even graduated from the École Polytechnique and began
his professional career in 1992 at the French Ministry of Defence,
where he was in charge of developing the space component for
the Helios II satellite.
In 1997, he transferred to the Ministry of Foreign Affairs to
become technical advisor for the Director of Strategic Affairs,
Security and Disarmament. He moved to the private sector andjoined Safran in 1999.

Alberto Gutiérrez – Chief Operating Officer
Alberto Gutiérrez has been Chief Operating Officer (COO) of
Airbus since 1 July 2021 and is a member of the Company’s
Executive Committee.
He leads the production, quality and procurement organisations.
His overriding goal is to ensure the speed, efficiency and qualityof aircraft production at Airbus.
As the Company embarks on an era of digital and series
manufacturing, Alberto’s role is to implement continuous
operational excellence and to develop the production systemof the future. In addition, he is Head of Airbus Spain, in chargeof overseeing the Company’s overall business activities in the
country.
He was previously Head of Military Aircraft within Airbus Defence
and Space and a member of the Division’s Executive Committee
since 1 January 2019, after having led Operations for Airbus
Military Aircraft since July 2017, and Combat Air Systems since
January 2016.
He was CEO for Eurofighter GmbH from 2013 to 2015, and Chief
Operating Officer (COO) for Airbus Military from 2007 to 2013.

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In this role he was responsible for the worldwide operationsof the military aircraft business, including manufacturing andproduction in all the different sites of the company, setting up the
A400M Final Assembly Line in Seville, the A330 Tanker Conversion
Centres in Madrid, Brisbane (Australia) and Bournemouth (UK),the revitalisation of the Indonesian Aerospace Industry and therestructuring of the company’s Polish subsidiary in Warsaw
PZL as well as the defence business in Portugal through thePortuguese Company OGMA.
Alberto Gutiérrez´s career started in 1985 as a young engineer
in the former CASA in Getafe, working and gaining experience indifferent positions in Manufacturing and Production, IT, Planningand Programmes.
Alberto Gutiérrez has a Telecommunications Engineering degreefrom the Universidad Politécnica of Madrid and holds a masterin Information System Management.

John Harrison – General Counsel
John Harrison has been General Counsel since June 2015 andhe is a member of the Airbus Executive Committee.
Solicitor of the Supreme Court of England & Wales, John
Harrison completed his academic studies at the University of
McGill, Montréal, Canada. He holds a Bachelor LLB (Hons) and
Masters LLM of Laws degree.
John Harrison began his career in 1991 at the international law
firm Clifford Chance, working consecutively in their London, NewYork and Paris offices.
He joined Airbus then Technip S.A. where he served as Group
General Counsel and Member of the Executive Committee from2007 to 2015.
Prior to joining Technip, Mr Harrison fulfilled various senior legal
positions in Airbus companies over a ten year period culminating
his tenure from 2003 to 2007 as General Counsel of the EADSDefence Division.
John Harrison was born on 12 July 1967 in the United Kingdom.

Catherine Jestin – Executive Vice President Digitaland Information Management
Catherine Jestin has been Executive Vice President Digital andInformation Management at Airbus since 1 July 2021 and is amember of the Company’s Executive Committee.
The main focus of Catherine’s organisation is to foster digital
innovation across Airbus’ industrial ecosystem and its products
and services portfolio, accelerating data analytics, artificial
intelligence, automation and services for customers as well as
digital security for the Company.
Catherine works to reinforce the transversal cooperation
across Airbus functions company-wide in order to continue thesuccessful deployment of the Digital Design, Manufacturing &Services (DDMS) programme, established to enable co-design
capabilities and digital continuity system-wide.
Catherine had previously held the position of Chief Information
Officer (CIO) at Airbus since March 2020. In this role, she was
responsible for driving state-of-the-art Information Technology
systems and solutions in support of Airbus employees, customers
and suppliers.

4. Corporate Governance /4.1 Management and Control

Prior to this position, Catherine was Chief Information Officer
at Airbus Helicopters, a role that she held from July 2013 to
February 2020.
Before joining Airbus, Catherine held a variety of positions,
between 2007 and 2013, at Rio Tinto in Montreal, Canada within
the field of Information Systems & Technology (IS&T). Catherine
also spent 17 years at Accenture and was nominated Partnerin 2002, a position that she held for five years

Julie Kitcher – Executive Vice-President
Communications and Corporate Affairs
Julie Kitcher is EVP Communications and Corporate Affairs of
Airbus and a member of the Executive Committee, reportingto the CEO. Julie also serves as the Chief of Staff to the CEO.
Julie heads Communications. In addition, she drives Airbus
ambition and contribution to sustainable aerospace. Her rolealso oversees and coordinates the transformation agenda ofAirbus, Performance Management, Corporate Audit and Internal
Controls.
Julie has over 20 years of experience at Airbus. She has held anumber of roles in Finance including Financial Analyst, Corporate
Planning and Business Controlling.
Most recently and prior to her current position, Julie was the
Head of Investor Relations and Financial Communication. Under
Julie’s leadership, Airbus was awarded the “Most Honoured
Company” status in the Institutional Investor All Europe
Executive Team survey four years in a row -2015 to 2018. As
part of this recognition, Julie was named “Best Investor Relations
Professional” in the Aerospace & Defence sector for the same
period.
She also previously held a role in GE Capital Equipment Financein the UK. Julie is a Chartered Management Accountant (CIMA)
with an MSc from ESC Skema (Lille).

Sabine Klauke – Chief Technical Officer
Sabine Klauke has been Chief Technical Officer at Airbus since
1 July 2021 and is a member of the Company’s Executive
Committee.
In this role, Sabine drives the Company’s ambition behinddelivering bold and breakthrough technologies to build thefuture of aerospace. She also leads a team of more than 11,000
Airbus engineers across the globe who design, develop, certify
and ensure continuing airworthiness of all Commercial Aircraft
products and services.
Previously, Sabine was Head of Engineering within Airbus
Defence and Space and a member of the Division’s Executive
Committee. In this capacity, she was responsible for all
engineering activities within the Defence and Space division andin charge of its product and services portfolio. By managing thetechnology, development and innovation roadmap, she playeda key role in preparing the future of Airbus Defence and Space.
Prior to this position, she served as Head of Programmes
Customer Services: a responsibility she held for the A330/
A340 programmes since 2015. Sabine joined Airbus in 2002,
where she has held positions of increasing responsibility withinmanufacturing engineering, production, product development
programmes, development processes and change andinnovation projects within the Airbus Commercial Aircraft division.

From 1998 to 2002 Sabine worked at DELMIA, a brand of
Dassault Systèmes, where she carried out the deployment ofdigital manufacturing software and supported the developmentof the consulting and services department with customers in theautomotive and the aerospace industries.
Sabine has a PhD in Mechanical Engineering from the Universityof Technology (TU) in Dresden and is a graduate of the INSA
Hauts de France (formerly known as École Nationale Supérieured’Ingénieurs en Mécanique Énergétique in Valenciennes(ENSIMEV)).

Philippe Mhun – Executive Vice-President
Programmes and Services
Philippe Mhun was appointed as Chief Programmes & Services
Officer for Airbus Commercial Aircraft, effective 1 January 2019,
and a Member of the Company’s Executive Committee.
In his previous role as Head of Customer Services since
October 2016, Philippe Mhun was responsible for all Airbus
support and services activities for airline customers, lessors,
MROs and operators, ranging from maintenance and engineering
to training, upgrades and flight operations but also material
management and logistical support. This included the supervisionof the Services Business Unit and affiliated subsidiaries, such as
Satair, Navblue, Airbus Interiors Services and Sepang. For the
past two years, Philippe has initiated and implemented a majortransformation programme focusing on Customer Satisfaction,
Services development and digital enablers such as Skywise
applications.

4

Prior to this assignment, Philippe was Senior Vice-President
Procurement for Equipment, Systems and support, a position
he held since 2013.
Philippe joined Airbus in November 2004 as Vice-President A380
Programme within Customer Services to prepare and support
the A380 entry-into-service. He then became Vice-President
Programmes in Airbus Customer Services leading Single Aisle,Long Range, Widebody, A380 and A350 Programmes together
with e-operations and supplier support activities.
Before joining Airbus, Philippe held various positions within UTA
and following the merger in 1993, within Air France, starting
as a Structure Engineer for Boeing 747 at UTA all the way up
to becoming the Head of Long-Haul Fleet Engineering and
Maintenance in Air France. From 1986 to 2004, Philippe wasinvolved in new programmes’ entry-into-service, engineeringand maintenance at all levels of the Company.
Philippe Mhun holds a degree from the Applied Sciences National
Institute (INSA Lyon) as a mechanical engineer.

Christian Scherer – Chief Commercial Officer
and Head of Airbus International
Christian Scherer was appointed Airbus Chief Commercial
Officer in September 2018 and is a Member of the Company’s
Executive Committee. He is also heading Airbus International.
He was previously Chief Executive Officer of ATR, a position heheld since November 2016.
Prior to this, Christian was Executive Vice-President and Headof Airbus Group International, responsible for driving the overall
Airbus Group internationalisation strategy.

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Christian started his professional career in 1984 when he joined
Airbus Industrie as a Commercial Contracts Manager. He wasseconded to the US between 1987 and 1994 as Vice-President
Contracts of Airbus North America, responsible for pricing,financial performance, negotiation and implementation of all
sales transactions in North America.
On his return to headquarters, as Vice-President Leasing
Markets, he developed and managed an integrated sales division
covering all commercial activities dealing with operating leasing
companies and other financial institutions worldwide.
In 1999, he was appointed Vice-President Contracts and Pricing
worldwide while retaining leadership of the Leasing Markets
Division and in 2003 he also became the Deputy Head ofCommercial.
Following his time in Commercial, he became Head of Strategy
and Future Programs at Airbus, responsible for defining Airbus’
long-term strategic objectives and for driving the genesis of
future aircraft product offerings and programmes, such as the
A320neo, as well as Airbus’ international development in termsof the US final assembly lines.
In 2012, he was appointed Head of Sales & International
Operations at Cassidian in Munich, Germany, responsible
for Sales, Marketing, Strategy and Cassidian’s International
Subsidiaries including Brazil, India, KSA, UAE, UK and US.
Upon integration of Airbus’ Defence, Space and Military aircraftbusinesses, he became the Head of Marketing & Sales of Airbus
Defence and Space and Managing Director of Airbus Defence
and Space GmbH. In that role, he held the overall responsibility
for all Sales & Marketing activities. He also chaired BDLI’s defence
and security forum whilst being a member of the BDLI presidium.
Born in 1962 in Duisburg, Germany, and raised in Toulouse,
France, Christian Scherer holds an MBA from the University ofOttawa and graduated from the Paris Business School (ESCP)in 1984.

Michael Schöllhorn – Chief Executive Officer
Airbus Defence and Space
Michael Schoellhorn has been Chief Executive Officer (CEO) of
Airbus Defence and Space since 1 July 2021 and is a member of
Airbus’ Executive Committee, responsible for Airbus’s defence,
space, unmanned air services and connected intelligence
activities.
Previously, he was Airbus Chief Operating Officer (COO) and amember of the Company’s Executive Committee. In this position,
he led the production, quality, procurement and information
management organisations, transforming and building the
production system of the future.
Michael joined Airbus in February 2019 from BSH Home
Appliances GmbH in Munich, where he was COO and a memberof the BSH Management Board from 2015.
Michael began his career in 1984 in the German armed forces,
where he served as an officer and a helicopter pilot until 1994,
with assignments in Germany and the US. Michael worked
in academia as a research assistant at the Helmut Schmidt
University (University of the German armed forces) in Hamburg(1994-1999). He started out his career with Bosch in 1999 andheld various senior management positions in the automotive
sector in the US, the Czech Republic and Germany before being
appointed EVP for Manufacturing and Quality in 2012.

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Michael is President of BDLI, the association of the German
aviation industry as well as a presidium member of BDI, theassociation of the German Industry.
He is Chairman of the Supervisory Board of Airbus
Operations GmbH, Managing Director of Airbus Defence andSpace GmbH, member of the Board of Directors of Airbus
Defence and Space Inc. US and member of the Board of
Directors of Stratasys Ltd (NASDAQ: SSYS).
Michael Schöllhorn holds a degree in Mechanical Engineeringand a PhD in Control Engineering from the Helmut Schmidt
University.

Antoine Bouvier – Head of Strategy, Mergers& Acquisitions and Public Affairs
Antoine Bouvier has been appointed Head of Strategy, Mergers& Acquisitions and Public Affairs Airbus, effective 1 June 2019.
Antoine Bouvier joins Airbus from MBDA where he had been
Chief Executive Officer (CEO) since June 2007.
From January 2002 to June 2007, he was CEO of Astrium
Satellites (now part of Airbus Defence and Space).
Previously, he was Executive Vice-President in charge of theCommercial Helicopter Division of Eurocopter (now Airbus
Helicopters).
In 1990, Antoine Bouvier joined Aérospatiale as Assistant to
the Director of the company’s Civil Aircraft Division. In 1991,
he became Director of the Division’s Department of Strategic
Analysis.
From 1992 until 1994, he was Secretary General and Industrial
Director of ATR GIE. From 1994 until 1998, he was Vice-President
Operations of ATR, going on to become President of ATR GIE
between 1998 and 2001.
Antoine Bouvier started his career as an auditor at the Cour desComptes. He graduated from the École Polytechnique (19811984) and of the École Nationale d’Administration (1984 -1986).

C. Jeffrey Knittel – Chairman and Chief Executive
Officer Airbus Americas
C. Jeffrey (Jeff) Knittel is the Chairman and CEO of Airbus
Americas, Inc. In addition, he is the Head of Region for theAmericas and as such reports directly to the Airbus CEO.
He is responsible for Airbus’ commercial aircraft businessthroughout the Americas, as well as for providing leadershipfor the company’s market leading helicopter business and its
space and defence unit in North America.
Additionally, Knittel chairs A3 by Airbus, the company’s Silicon
Valley-based innovation arm; is a Board Member of Airbus
Ventures, which scouts and invests in early stage technologies
across the globe; and a member of the Airbus Canada Limited
Partnership Board – a multibillion dollar joint venture of Airbus,
Bombardier, and the Province of Quebec to procure parts,
assemble, and market the world’s most modern commercial
aircraft, the A220.
With more than 5,000 employees, Airbus Americas
encompasses the regional corporate offices, engineering andinnovation centers, training facilities, MROs and spare parts
distribution centers, imagery and drone services, as well as large
scale manufacturing facilities producing commercial aircraft,
helicopters, and satellites.

4. Corporate Governance /4.1 Management and Control

Knittel has more than 35 years of experience in aerospace
and transportation finance. Before joining Airbus, Knittel was
Chief Executive Officer of C2 Aviation Capital (C2), a global
leasing company focused on acquiring, leasing and managing
commercial aircraft. Prior to leading C2 Aviation Capital,
Mr. Knittel served since 1986 in a series of senior leadership
positions at CIT Group Inc. – most recently as President of CIT
Transportation Finance, a $21 billion diversified organisation thatprovided leasing and financing solutions for the aerospace, rail
and maritime industries, including commercial airlines, businessaircraft operators, railroads and shippers.
Knittel is currently a member of the Board of the National Air andSpace Museum, the Board and Chair of the Finance Committeeof the USO of Metropolitan New York, the Board of Trustees of
the National World War II Museum, and a member of the Board
and Executive Committee of the Atlantic Council. He is a former
President and an emeritus member of the Board of Governors of
the Wings Club. He is a former Chairman of the Board of Just One
Break, a not-for-profit institution founded by Eleanor Roosevelt
for the disabled and later merged with The Viscardi Center.
Mr. Knittel holds a bachelor’s degree in aviation managementfrom Embry-Riddle Aeronautical University. In addition, he
graduated from the Advanced Management Program at the
University of Pennsylvania’s Wharton School of Business.

George Xu – Chief Executive Officer Airbus China
George Xu has been appointed CEO of Airbus China effective
8 January 2018. As country head of Airbus China, he is
responsible for all Airbus Commercial Aircraft business activities
and providing leadership to the company’s Helicopters andDefence and Space businesses in China.

In 1995, George Xu worked for the Tianjin Economic andTechnology Development Area Administrative Committee. He
was nominated Deputy Director of the Investment Promotion
Bureau of Tianjin Free Trade Zone in 2003 and was promoted
as its Director in 2005, when he started to actively participate
in the Airbus A320 Family Final Assembly Line project includingsite selection, and negotiation and set-up of the joint venture.
From 2008 to 2011, George Xu was Deputy GM of Airbus Tianjin
A320 Family Final Assembly Line and in parallel Director of
the Investment Promotion Bureau of Tianjin Free Trade Zone
Administrative Committee and Deputy Chairman of Avicopter.
In 2011, he was appointed Chairman of Board of Airbus Tianjin
Final Assembly Line and Vice President of Tianjin Free Trade
Zone Administrative Committee.
In 2014, George Xu was nominated and worked full time as
Party Secretary of Tianjin Youth League until 2017. George Xu
was a member of the Standing Committee of Tianjin Municipal
People’s Congress from 2015 to 2017.

4

George Xu was born in 1972 in Suzhou, Jiangsu Province.
George Xu received a Bachelor of Engineering degree inInformation Management System from Tianjin University and
Master of Business Administration from Roosevelt Universityof Chicago. He also received a Doctorate degree in Economics
from Nankai University.
George Xu is married and in his spare time, he likes football,hiking and reading.

4.1.2 Dutch Corporate Governance Code, “Comply or Explain”
For the financial year 2021 and in respect of compliance with
the Dutch Code, the Company states the following:

In accordance with Dutch law and with the provisions of the
Dutch Code as amended in 2016, which includes a number of
non-mandatory recommendations, the Company either complies
with the provisions of the Dutch Code or if applicable, explainsand gives sound reasons for their non-application.

1. S
 ecurities in the Company as Long-Term
Investment

On 8 December 2016, the Dutch Code was revised; its updated
recommendations apply to financial years starting on or after
1 January 2017.

Provision 3.3.3 of the Dutch Code recommends that NonExecutive Directors who hold securities in the Company should
keep them as a long-term investment.

The Company welcomed the updates to the Dutch Code andcontinues supporting the emphasis of the revised Dutch Codeon topics such as long-term value creation and the importanceof culture.

Although Non-Executive Directors are welcome to own sharesin the share capital of the Company, the Company does not
require its Non-Executive Directors who hold shares to keep suchshares as a long-term investment. The Company considers it isaltogether unclear whether share ownership by Non‑Executive
Directors constitutes a factor of virtuous alignment withstakeholder interest or may be a source of bias against objective
decisions.

While the Company, in its continuous efforts to adhere to
the highest standards, complies with nearly all of the current
recommendations of the Dutch Code, it must, in accordance withthe “comply or explain” principle, provide the explanations below.
For the full text of the Dutch Code as well as the New Code,please refer to www.mccg.nl.

Provision of 3.1.2 vi of the Dutch Code recommends that theshares awarded to the CEO are held for at least five years after
they are awarded. The rules applicable within the Company(as described Section 4.4.2 B e) below) do not impose
a minimum of five year holding of awarded shares, however,
the Company believes that potential deviations from thisrecommendation are significantly limited by the share ownership

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guideline set-forth in Section 4.4.2 B f) under which the CEO is
expected to hold throughout his/her tenure Airbus shares witha value equal to 200% of his/her Base Salary.

2. Dealings with Analysts
Provision 4.2.3 of the Dutch Code recommends meetings withanalysts, presentations to analysts, presentations to investors
and institutional investors and press conferences shall beannounced in advance on the Company’s website and by meansof press releases. In addition, it recommends that provisions
shall be made for all shareholders to follow these meetingsand presentations in real time and that after the meetings thepresentations shall be posted on the Company’s website.
The Company does not always allow shareholders to follow
meetings with analysts in real time. However, the Company
ensures that all shareholders and other parties in the financial
markets are provided with equal and simultaneous information
about matters that may influence the share price.

3. Gender Diversity
On 1 January 2022, new diversity measures entered into
force in the Netherlands as laid down in the Dutch Civil Code.
Pursuant to article 2:166 of the Dutch Civil Code, the Company
is required to set an appropriate and ambitious target in the formof a target figure (at the Company’s own discretion), to promote
well-balanced gender diversity on the Board of Directors, among
senior management, as well as a plan to achieve that target. In
case of her approval at the AGM 2022, four Members of theBoard of Directors will be female. The proportion of the female
representation on the Board of Directors is currently at 25%

and will thus be increased to approximately 33%. The Company
will in any event continue to promote gender diversity within its
Board of Directors in accordance with the principles mentioned
in Section 4.1.1 above. In addition, the Company will continue
to give due consideration to any applicable gender targets in
its search to find suitable Board candidates and to actively
seek female candidates. However, the Company believes thatcandidates should not be recruited based on their gender alone;
the capabilities and skills of potential candidates are mostimportant in this respect.
Therefore, the importance of diversity, in and of itself, should
not set aside the overriding principle that someone should berecommended, nominated and appointed for being “the right
person for the job”.
The Company values diversity in the broadest sense, ranging
from gender to ethnicity. To this end, the Company is committed
to promoting, supporting and leveraging initiatives to increase thediversity within its workforce, as well as at top management andBoard levels. With the support of stakeholder input, the Company
is diligently working on building a pipeline of suitable candidates.
Through these dedicated programmes, the Company is confidentof notably improving gender diversity within a reasonable
timeframe. Although the Company has not set specific targets
with respect to particular elements of diversity, except for the
principles described in “– 4.1.1 Composition, powers and rules”
and those targets which apply by law, the Company considers
attributes such as personal background, age, gender, national
origin, experience, capabilities and skills when evaluating
new candidates in the best interests of the Company and its
stakeholders.

4.1.3 Enterprise Risk Management System
The long-term development and production cycles of theCompany’s products and services make ERM a crucial
mechanism to both mitigate risks faced by the Company andto identify and enhance potential opportunities.
Applied across the Company and its main subsidiaries, ERM is apermanent top-down and bottom-up process, which is executed
across Divisions at each level of the organisation. It is designed
to identify and manage risks and opportunities. A strong focus
is put on the operational dimension due to the importance ofprogrammes and operations for the Company. External factors
are also well considered in our approach.
ERM is an operational process embedded into the day-today management activities of programmes, operations andfunctions. The top risks and their mitigations are reported to theBoard of Directors through a reporting synthesis, consolidated
on a quarterly basis.

The ERM system relies on five pillars:–– anticipation: early risk reduction and attention to emerging
risks;–– speak-up & early warnings;–– robust risk mitigations;–– opportunities; and–– strong Governance.

4.1.3.1 ERM Process
The objectives and principles for the ERM system, as endorsedby the Board of Directors, are set forth in the Company’s ERM
Policy and communicated throughout the Company. The
Company’s ERM Policy is supplemented by directives, manuals,
guidelines, handbooks, and other supporting documents.
External standards which contribute to the Company’s ERM
system inclue the ISO 31000 defined by the International
Organization for Standardization (“ISO”).
The ERM process consists of three elements:–– a strong operational dimension - derived from ISO 31000 to enhance operational risk and opportunity management,
looking in particular at identifying and mitigating single pointsof failure (SPOF);

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4. Corporate Governance /4.1 Management and Control

All Airbus organisations, including Divisions, subsidiaries
and controlled participations, commit to and confirm theeffective implementation of the ERM system. The annual ERM
Confirmation Letter issued by each organisation is the formal
acknowledgement about the effectiveness of the ERM system.

–– the Head of ERM has primary responsibility for the ERM
strategy, priorities, system design, culture development andreporting tool. He supervises the operation of the ERM system
and is backed by a dedicated risk management organisationin the Company, focusing on the operational dimension, early
warning and anticipation culture development, while actively
seeking to reduce overall risk criticality by challenging thebusiness. The risk management organisation is structured asa cross-divisional Centre of Competence (“CoC”) and pushes
for a proactive risk management;–– the management at executive levels has responsibility
for the operation and monitoring of the ERM system in its
respective areas of responsibility, and for the implementationof appropriate response activities to reduce risks and seize
opportunities, considering the recommendations of theinternal and external auditors.

For a discussion of the main risks to which the Company is
exposed, see “– Risk Factors”.

4.1.3.3 ERM Effectiveness–– a reporting dimension (bottom up and top down), whichcontains procedures for the status reporting of the ERM
system and the risk/opportunity situation; and–– an ERM confirmation dimension, which comprises proceduresto assess the effectiveness of the ERM system.
The ERM process applies to all relevant sources of risks andopportunities that potentially affect the Company’s activities,
its businesses and its organisation in the short-, mid- and longterm. The ERM process is part of the management process andinter-related with the other processes.

4.1.3.2 ERM Governanceand Responsibility
The governance structure and related responsibilities for the
ERM system are as follows:–– the Board of Directors with support of the Audit Committee
supervises the strategy and business risks and opportunities,
as well as design and effectiveness of the ERM system;–– the CEO authorises the reports escalated to the Board of
Directors. The CFO is accountable for an effective ERM systemand supervises the Head of ERM, and the ERM system design
and process implementation;

4

The ERM effectiveness is analysed by:–– ERM CoC, based on ERM reports, confirmation letters, in situ
sessions (e.g. risk reviews), participation to key controls (e.g.
major programme maturity gate reviews);–– ERM key performance indicators measuring maturity andeffectiveness of the ERM process in the programmes andfunctions;–– Risk & opportunity deep dives proposed by the ERM CoC andperformed by the functions with the involvement and supportof the ERM CoC; and–– Corporate Audit, based on internal Corporate Audit reports
and on an annual survey towards heads of programmes andfunctions and towards the ERM network.

The combination of the following controls is designed to achieve reasonable assurance about ERM effectiveness:
Organisation

Explanations

Board of Directors /Audit Committee

Regular monitoring
The Board of Directors and the Audit Committee review, monitor and supervise the ERM system.
Any material failings in, material changes to, and/or material improvements of the ERM system which
are observed, made and/or planned are discussed with the Board of Directors and the Audit Committee.

Top Management

ERM as part of the regular divisional business reviews
Results of the operational risk and opportunity management process, self-assessments and confirmation
procedures are presented by the Divisions or other Airbus’ organisations to top management.
ERM working sessions at Executive Leadership Meeting twice a year.

Management

ERM confirmation letter procedure
Entities and department heads that participate in the annual ERM compliance procedures must sign ERM
Confirmation Letters.

ERM CoC

ERM effectiveness measurement
Assess ERM effectiveness by consideration of ERM performance KPI, ERM reports, ERM confirmations,in situ sessions (risk reviews etc.), participation to key controls (e.g., major Programme Maturity Gate Reviews).

Corporate Audit

Audits on ERM
Provide independent assurance to the Audit Committee on the effectiveness of the ERM system; annual survey.

E&C

Alert System
Detects deficiencies regarding conformity to applicable laws and regulations as well as to ethical businessprinciples.

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4.1.3.4 Board Declaration
Based on the Company’s current state of affairs, the reports
made directly available to the Board of Directors, coming fromdifferent processes, audits and controls and the information it
received from management, the Board of Directors believes tothe best of its knowledge that:–– the internal risk management and control systems provide
reasonable assurance that the financial reporting does notcontain any material inaccuracies;–– this report provides sufficient insight into any material failings in
the effectiveness of the internal risk management and control
systems;–– it is justified that the Financial Statements have been preparedon a going concern basis; and–– this report states the material risks and uncertainties that are
relevant to the expectation of the Company’s continuity forthe period of 12 months after the preparation of the report.
It should be noted that no matter how well designed, the internalrisk management and control system has inherent limitations,such as vulnerability to circumvention or overrides of thecontrols in place. Consequently, no assurance can be giventhat the Company’s internal risk management and system andprocedures are or will be, despite all care and effort, entirely
effective.

4.1.4 Internal Audit
In accordance with Principle 1.3 of the Dutch Corporate
Governance Code, Airbus Corporate Audit & Forensic engages in
the independent and objective corporate assurance activities ofinternal auditing, consulting activities, and forensic investigations.
It supports the Company in improving its operations andaccomplishing its objectives by bringing a systematic anddisciplined approach to evaluate and improve the designand effectiveness of the organisation’s governance, risk
management, and internal controls. Its mandate is set out in the
Airbus Corporate Audit and Forensic Charter. The department’s
independence is established by direct reporting to the Audit
Committee and by access to the CEO.

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Corporate Audit activities are independently assessed by IFACI(Institut Français de l’Audit et du Contrôle Internes). IFACI certifies
that Corporate Audit adheres to and fulfils the requirements of
the IFACI Internal Audit Professional Framework 2020 and theInternational Professional Practices Framework of the Global
Institute of Internal Auditors. The Certification was renewed on
the 29 November 2021 for a period of three years.

4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

4.2 Interests of Directors and Principal
Executive Officers
4.2.1 Remuneration Policy
The Remuneration Policy covers all members of the Board of
Directors: the CEO (who is the only Executive Director) and theother members of the Board of Directors (who are the NonExecutive Directors).
Pursuant to a resolution to that effect, the general meetingmay (re)adopt, amend or supplement the Remuneration Policyon the basis of a proposal by the Board of Directors at therecommendation of the RNGC.
The Board of Directors, at the recommendation of the RNGC,
may decide to deviate temporarily (and ultimately until the General
Meeting adopts an amended version of the Remuneration Policy
following the occurrence of such deviation) from any element of
the Remuneration Policy as outlined below, if this is necessary toserve the long-term interests and sustainability of the Company
or to assure its viability.
The Remuneration Policy in the form set out below in thischapter 4.2.1 has been adopted by the AGM held in 2020 witheffect as of 1 January 2020.
Given the positive outcome (with a very high score) of themost recent vote of the Company’s general meeting on thecurrent Remuneration Policy, as well as the feedback received
from shareholders during dedicated engagements notably onsustainability matters, the Board of Directors does not believe thatany amendment to the Remuneration Policy is required this year.
The Board of Directors believes that the Remuneration Policy
is robust and drives the desired outcome. The Remuneration
Policy shall be posted on the Company’s website as part of theCompany’s annual report of the Board of Directors.

4.2.1.1 Executive Remuneration –Applicable to the CEOa) Remuneration Philosophy
The Company’s remuneration philosophy aims to provide
remuneration that will attract, retain and motivate high-calibre
executives, whose contribution will ensure that the Company
achieves its strategic and operational objectives, thereby
delivering long-term sustainable returns for all shareholders andother stakeholders in a manner consistent with the Company’s
identity, mission and corporate values.

The Board of Directors and the RNGC are committed to making
sure that the executive remuneration structure (i) is transparent
and comprehensive for all stakeholders; (ii) is consistent andaligned with the interests of long-term shareholders, also taking
into consideration the employment conditions of the Company’s
employees; and (iii) incentivises further the Company’s corporate
values by basing variable remuneration components also on
the achievement of non-financial targets and metrics using
environmental, social or governance criteria via the sustainability
performance measure.

4

Before setting the targets to be proposed for adoption by the
Board of Directors, the RNGC considers the financial outcome
scenarios of meeting performance targets, including achieving
maximum performance thresholds, and how these may affectthe level and structure of the executive remuneration, as well as
potential risks for the Company’s business which may result fromvariable compensation. The Board of Directors shall also consider
these aspects, based on the RNGC’s recommendations.
Also, before making a recommendation relating to the
remuneration of the CEO, the RNGC and the Board of Directors
shall take note of the views of the CEO with regard to the amount,level and structure of his or her remuneration.

b) Total Direct Compensation and Peer GroupThe CEO’s total direct compensation (“Total Direct
Compensation”) comprises a base remuneration (“BaseSalary”), an annual variable short-term remuneration (“Annual
Variable Remuneration” or “VR”) and an award under the
long-term incentive plan (“LTIP”). The three elements of the
Total Direct Compensation are each intended to comprise one
third of the total, assuming the achievement of performance
conditions is 100% of the applicable targets. The level of the
Total Direct Compensation for the CEO (Base Salary, VR andLTIP) is set by reference to the median of an extensive peergroup (as described in paragraph 4.4.3 item a) below) and takes
into account the scope of the role of the CEO, and the leveland structure of executive rewards within the Company. The
benchmark is regularly reviewed by the RNGC, with the supportof an independent consultant, and is based on a peer groupwhich comprises:–– global companies in the Company’s main markets (France,
Germany, UK and US), excluding financial institutions; and–– companies operating in the same industries as the Company
worldwide.

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4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

The elements of the Total Direct Compensation are described below:
Remuneration Element
Base Salary(in €)

Variable
Remuneration(in €)

LTIP(in Units and/or Shares)

Main Drivers

Performance Measures

Target and Maximum

Reflects market valueof position.

Not applicable

1/3 of Total Direct Compensation(when performance achievement
is 100% of target).

Rewards annual
performance basedon achievement ofCompany performancemeasures and individual
objectives.

Rewards long-term
commitment andCompany performance,and engagement basedon financial targets
aligned with long-term
objectives subject tocumulative performanceover a three-year period.

Collective (50% of VR):
divided between EBIT(1) (40%);
Free Cash Flow(2) (40%)
and Sustainability (20%).
Individual (50% of VR):
Achievement of annual individual
objectives, divided between
Outcomes and Behaviour.

Vesting, subject to performanceover a three-year period.
In principle, no vesting
if cumulative EBIT is negative.
If cumulative EBIT is positive,
vesting from 50% to 150%
of grant based on EPS (75%)
and Free Cash Flow (25%).

The VR is targeted at 100%of Base Salary for the CEO anddepending on the performance assessment,
ranges from 0% to 200% of target.
The VR is capped at 200% of Base Salary.

The original allocation to the CEOis capped at 100% of Base Salaryat the time of grant. Vesting capped at 150%
of initial grant (in number of Performance
Shares and/or Units).

---

In addition, for the vestingof Performance Units:
overall pay-out is capped at 250%of the original value at the date of grant;
the value that could result from shareprice increases is capped at 200% of thereference share price at the date of grant.

(1) The Company continues to use the term EBIT (earnings before interest and taxes). It is identical to Profit before finance cost and income taxes as defined by IFRS Rules.
(2) Airbus defines the alternative performance measure FCF as the sum of (i) cash provided by operating activities and (ii) cash used for investing activities, less (iii) changeof securities, (iv) contribution to plan assets for pension schemes, (v) realised treasury swaps and (vi) bank activities. It is a key indicator which allows the Company to measure
the amount of Cash Flow generated from operations after cash used in investing activities.

The following graphic depicts three relevant scenarios for the outcome of the Total Direct Compensation:

Below Threshold
TargetMaximum
0Base Salary

1

2

3

Variable Remuneration (VR)4

5

LTI paid in cash

6

7

8

LTI paid in shares

Indications assume a Base Salary of € 1.35 million, but the Board of Directors may revise the Base Salary based on the recommendationsof the RNGC.
“Below Threshold” includes annual Base Salary; VR at 0%; LTIP not vesting.
“Target” includes Base Salary, VR at target and LTIP grant face value in cash and/or in shares.
“Maximum” includes Base Salary; maximum VR value (200% of VR at target); maximum LTIP cash grant projected at vesting date
(250% of grant value); maximum performance applicable to the number of shares granted (150%). The final value of Performance
Shares depends on the share price development which is not capped.
Illustrative table for a theoretical grant of 50% Shares / 50% Units.

c) Base Salary
The CEO’s Base Salary is determined by the Board of Directors, taking into account the peer group analysis mentioned above.

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4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officersd) Annual Variable Remuneration
The Variable Remuneration is a cash payment that is paid following the end of each financial year, depending on the achievementof specific and challenging performance targets as determined at the beginning of each financial year. The level of the CEO’svariable remuneration is targeted at 100% of the Base Salary; it is capped at a maximum level of 200% of the Base Salary. The
entire Variable Remuneration is at-risk, and therefore if performance targets are not achieved as per the defined objectives agreed
by the Board of Directors, it may mean that no variable remuneration is paid at all.
The performance measures that are considered when awarding the variable remuneration to the CEO are split between common
collective performance measures and individual performance measures.

Common Collective Component
The common collective component is based on earnings before interest and taxes (“EBIT”) (40%), Free Cash Flow (40%) andsustainability (20%) objectives (the “Common Collective Component”). At the beginning of each year, the Board of Directors sets thetargets for these key value drivers at Company and Division levels. The common collective targets relate closely to internal planningand to guidance given to the capital markets (although there may be variations from these). The key value drivers that form thesustainability component will be determined by the Board of Directors and disclosed in the implementation section of the Company’s
remuneration report for the relevant financial year. They can be related to matters such as health & safety, climate and/or people.
To calculate the common collective annual achievement levels, actual EBIT, Free Cash Flow and sustainability performance arecompared against the targets that were set for the year. This comparison forms the basis for computing achievement levels,
noting that the actual EBIT, Free Cash Flow levels are occasionally normalised for a limited number of factors which are outside
management’s control (such as certain foreign exchange impacts or unplanned merger and acquisition activities). The RNGC’s
intention is to ensure ambitious financial and sustainability targets, and to incentivise the CEO’s commitment to meeting these targets.

4

The graphic below illustrates the Common Collective Component, how it is measured and what the key value drivers are:

FCF (Free Cash Flow)
Annual, M€ (40%)

EBIT (Earnings before Interest & Tax)
Annual, M€ (40%)
Measures operational profitability
Driven by revenues and operating
expenses

Measures cash generation
Driven by cash provided by/used for operating
and investment activities

AirbusExecutives
commoncollective
financial
targets

Sustainability
Annual, % (20%)
Criteria giving effect to the Sustainability
component could be related to health & safety,
climate and/or people

Individual Component
The individual element (“Individual Component”) focuses on outcomes and behaviour (as defined below). Individual performanceis assessed in these two important dimensions, which both contribute to the Company’s remuneration philosophy. Among othermatters, corporate social responsibility and the Company’s corporate values are considered as part of this assessment.
–– Outcomes encompass various aspects of what the CEO can do to contribute to the success of the business: specific businessresults he achieves, projects he drives and processes he improves. The individual targets of the CEO are comprehensive andshared with all employees via the top company objectives.
–– Behaviour refers to the way results have been achieved, which is also critical for long-term success: how the CEO and theBoard of Directors work as a team, how the CEO leads the Executive Committee, quality of communication, encouragement ofinnovation, etc. A specific part of the behaviour assessment relates to ethics, compliance, quality and other sustainability matters.
The performance of the Individual Component is measured by the RNGC for the CEO and for all the other members of the Executive
Committee.

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4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

The RNGC discusses the level of achievement of every single target and derives a combined target achievement level for theoutcomes. The behavioural part of the Individual Component is also discussed by the RNGC and constitutes an adjustment
factor for the target achievement of the outcomes. Finally, the RNGC proposes to the Board of Directors the compound Individual
Component of the CEO target achievement made up from the outcomes and behavioural achievements.

e) Long-Term Incentive Plan
The CEO participates in the Company’s LTIP in order to increase the alignment with shareholders’ interests. The LTIP allows theaward of Performance Units (“Performance Units” or “Units”) and/or Performance Shares (“Performance Shares” or “Shares”).
The value of the CEO’s LTIP allocation is capped at 100% of the Base Salary at the date of grant and subject to performance
conditions. The achievement of the performance criteria is assessed by the RNGC after a three-year period, based on relevant
financial criteria during this period of three years with stringent targets set in advance and agreed by the Board of Directors at therecommendation of the RNGC.
At the end of this three-year period, the grant is subject to a performance calculation to determine whether and to what extent
it should vest. Depending on this calculation (i) Performance Units will vest in two tranches, the payment of which takes placeapproximately six and 18 months following the end of the performance period and (ii) Performance Shares will vest in one tranche,
approximately six months following the end of the performance period. This is depicted in the graphic below:
Performance calculation
determines the number of Unitsand Shares that may vest

GRANT DATE
Face value at grant date
Allocation policy

Y

Y+1

Y+2

Y+4

Y+5

Vesting in CASH

X

X

Vesting in SHARES

X

Y+3

Performance period 3 years

The level of vesting of Performance Shares and Units is subject to the following performance measures:–– 0-50% of the allocation: In principle, this element of the Performance Unit / Share award will not vest if the Company reports
negative cumulated EBIT results. Nonetheless, in case the Company’s EBIT results are impacted by exceptional and unpredictable
circumstances, the Board of Directors, upon recommendation of the RNGC, may decide that a maximum portion of 50% of theallocation will vest;–– 50-150% of the allocation: This element of the Performance Unit / Shares vests based on the two following performance criteria:
average earnings per share (75%) (“Earnings per Share” or “EPS”) and cumulative Free Cash Flow (25%).

Earnings per Share (75%)
Average over 3 years, €Measures profitability
Driven by net income and number of shares

Free Cash Flow (25%)
Cumulated over 3 years, M€
Measures cash generation
Driven by cash provided by/used
for operating and investment activities

The vesting of Performance Units and Shares is subject to the following maximum cap:–– the maximum level of vesting is 150% of the number of Units/Shares granted.
The vesting of Performance Units is subject to the following maximum caps:–– the value that could result from share price increases is capped at 200% of the reference share price at the date of grant; and–– the overall pay-out is capped at 250% of the value at the date of grant.
Performance Units and Performance Shares that vest in accordance with the terms and conditions applicable to them are settled
without further action being required by the beneficiary.
For each payment in cash, one Unit is equal to the value of one Airbus SE share at the time of vesting. The Airbus SE share value
is the average of the opening share price, on the Paris Stock Exchange, during the 20 trading days preceding and including therespective vesting dates.

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4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officersf) Share Ownership Guideline
The Board of Directors has established a share ownershipguideline pursuant to which the CEO is expected to acquire
Airbus SE shares with a value equal to 200% of the Base Salaryand to hold them throughout his or her tenure.

g) Benefits

item k) below) assessed by the Board of Directors have been
fulfilled. If the CEO’s appointment as member of the Board of
Directors terminates within a period of 12 months or less prior to
his retirement date, the termination indemnity will be limited by
pro-rating its amount. This will not apply if the CEO’s mandate
is terminated for cause (misconduct), in case of resignation or
termination on or after his retirement date.

The benefits offered to the CEO are similar to the benefits granted
to other executives of the Company and comprise, among othermatters, medical, death and disability coverage (both througha social security system or a company plan, depending on thecontractual agreement with the CEO), a company car and usual
facilities.

The CEO’s appointment terms and conditions include a noncompete clause, which applies for a maximum of one year. The
compensation under the non-compete clause is equal to 50%of the last total annual remuneration (defined as Base Salaryand VR most recently paid), subject to applicable local legal
requirements if any and paid in monthly instalments.

Unless the law provides otherwise, the costs and expenses of
the CEO are covered, including reasonable costs of defending
claims, under the conditions set forth in the insurance policy
subscribed by the Company. Under circumstances excluded by
the insurance policy, such as an act or failure to act by the CEO
that can be characterised as intentional, intentionally reckless, orseriously culpable, there will be no entitlement to any coverage.

Past LTIP awards may be maintained, in such cases as retirement
or if a mandate is not renewed by the Company for a reason otherthan cause (misconduct). The vesting of past LTIP awards follows
the rules and regulations of the LTIP including performance
conditions and is not accelerated in any case. LTIP awards areforfeited for executives who leave the Company at their own
initiative, but this is subject to review by the Board of Directors.

h) Retirement
The CEO is entitled to retirement benefits through mandatory
applicable state and collective pension plans.
The CEO participates also in a Company pension contributions
based plan. This plan consists of an annual pension contributionof 20% of the annual pensionable remuneration (as describedin paragraph 4.2.1.3.B item h) below) subject to applicable local
practices (if any).

i) Clawback
In accordance with Dutch law, the Board of Directors may
adjust a “bonus” (as defined under Dutch law, including shortterm remuneration and awards under the Long-Term Incentive
Plan subject to performance criteria) awarded to the CEO toa suitable level, if payment or satisfaction of that bonus would
be unacceptable under the standards of reasonableness andfairness. Also, the Company may reclaim a bonus already paid,
in whole or in part subject to applicable local legal requirements,
if any, to the extent that such payment was made on the basis ofincorrect information regarding the achievement of the targets,
objectives and/or conditions underlying the bonus or regarding
the circumstances on which the bonus was dependent. The
Non-Executive Directors, or a special representative designatedby the general meeting, may demand such repayment on the
Company’s behalf.
Any such adjustment or clawback will be reported in the notesof the relevant Financial Statements of the Company.

j) Loans
The Company does not provide loans or advances to the CEO.

k) Severance
In case of termination of the CEO’s duties at the initiative of theBoard of Directors, the CEO shall be entitled to an indemnity
equal to one (1) time the last Total Annual Remuneration(defined as Base Salary and VR most recently paid) subject
to applicable local legal requirements if any, and provided thatthe performance conditions (as described in paragraph 4.4.3

4

The term of the CEO’s appointment is linked to his or her mandate
as a member of the Board of Directors. The termination of the
CEO’s appointment may be subject to a notice period of six
months, except if the CEO’s appointment is terminated for cause(misconduct), in which case the CEO’s appointment may beterminated immediately, or in case of non-renewal of the CEO’s
mandate by the general meeting.

4.2.1.2 Non-Executive Remuneration –Applicable to Non-Executive
Directors
The Company’s Remuneration Policy with regard to NonExecutive Directors aims at ensuring fair compensationand protecting the independence of the Board’s Members.
Their remuneration should be commensurate to the time spentand the responsibilities of their role on the Board of Directors.

Fees and Entitlements
Non-Executive Directors are entitled to the following remuneration
components:–– a base fee for membership or chair of the Board of Directors;–– a Committee fee for membership or chair on each of theBoard’s Committees;–– an attendance fee for the attendance of Board meetings(subject to such conditions as may be imposed by the Boardof Directors at the recommendation of the RNGC); and–– an attendance fee for the attendance of Committee meetings
if and when such Committees would have more than fourCommittee meetings per year (whether these meetings areheld physically or by phone).
Each of these fees is a fixed amount that is determined by the
Board of Directors from time to time, at the recommendationof the RNGC.
Committee chairmanship and Committee membership fees are
cumulative if the concerned Non-Executive Director belongs to
two different Committees. Fees are paid twice a year at the endof each semester (as close as possible to the Board meeting
dates).

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Non-Executive Directors do not receive any performance orequity- related compensation, and do not accrue pension rights
with the Company in the frame of their mandate, except what theywould receive in the frame of a current or past executive mandate.
These measures are designed to ensure the independence ofBoard Members and strengthen the overall effectiveness of theCompany’s corporate governance.
The Company does not encourage Non-Executive Directors topurchase Airbus SE shares.

The Company does not provide loans or advances to the NonExecutive Directors.
Unless the law provides otherwise, the Non-Executive Directors
shall be reimbursed by the Company for various costs andexpenses, including reasonable costs of defending claims.
Under certain circumstances, such as an act or failure to act
by a Member of the Board of Directors that can be characterised
as intentional, intentionally reckless, or seriously culpable, there
will be no entitlement to this reimbursement.

4.2.1.3 Implementation of the Remuneration Policy in 2021: CEOThis paragraph 4.2.1.3 describes how the Remuneration Policy was implemented in 2021 with respect to the CEO (Mr GuillaumeFaury). As a reminder, the AGM held in 2020 approved the Remuneration Policy through resolution five with a very high level of support.
In line with the Remuneration Policy and the expectation of the RNGC and the Board of Directors, the philosophy of the remuneration
policy aims to provide remuneration that will attract, retain and motivate high-calibre executive, while taking into account bestpractices as well as employee and shareholder considerations. It should help to ensure that the Company achieves its strategicand operational objectives, thereby delivering sustainable returns for all shareholders and other stakeholders in a manner consistent
with the Company’s identity, mission and corporate values.

a) Benchmarking
The latest benchmark was performed in July 2021 at RNGC and Board of Directors request.
The new relevant peer group from this last benchmark, based on Willis Towers Watson database, is composed of 55 companies(1)selected from CAC40 in France, DAX 40 (formerly DAX 30) in Germany, FTSE 100 in the UK, IBEX 35 in Spain and DJ 30 in the
US having comparable economic indicators such as revenues, number of employees and market capitalisation and providing
perspective on compensation practices from direct or indirect competitors. Financial institutions were excluded from this peer group.
Based on the conclusion of the independent expert who ran the benchmark, the total direct compensation (TDC) of the CEO
is below the median level of the peer group.
In line with the Company’s Remuneration philosophy, the conclusion of this benchmarking exercise was duly taken into accountby the RNCG and the Board of Directors when setting the remuneration of the CEO.
In addition to external benchmark, the RNGC considers also the remuneration of employees through the review of the evolutionof the pay-ratio (see 4.2.1.3 item (j)).

b) Base SalaryThe 2021 CEO Base Salary level on a full year basis is unchanged compared to 2020 and amounts to € 1,350,000 (lowered fromthe Base Salary of the former CEO: € 1,500,000 in 2019).

(1) France: Total, Sanofi, Safran SA, Air Liquide, Stellantis, Danone, Schneider Electric, Saint-Gobain, Vinci, Engie, Thales, Dassault systèmes.
Germany: Bayer, Volkswagen, Daimler, BASF, Deutsche Telekom, Siemens, BMW, Continental, E.ON, Henkel, Deutsche Post, SAP.
Spain: Iberdrola, Endesa, Siemens Gamesa, Santander, Telefónica, Naturgy, Repsol, Banco Bilbao, Inditex, Ferrovial SA.
UK: Shell, BP, BAT, GSK, Rio Tinto, Vodafone, Bae Systems, Rolls Royce, Diageo, Unilever, Tesco.
US: Boeing, Lockheed, Raytheon, General Dynamics, Northrop Grumm, GE, Caterpillar, 3M, IMB, Fedex.

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4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officersc) Annual Variable Remuneration
As stipulated in the Company’s Remuneration Policy, the CEO’s VR is targeted at 100% of the Base Salary and capped at 200%of the Base Salary. It is subject to the fulfilment of collective and individual performance targets.
For 2021, the VR of the CEO amounts to an aggregate of € 2,241,000 composed of € 1,296,000 (192%) for the Common Collective
Component and € 945,000 (140%) for the Individual Component.

Variable
Remunerationof CEO in 2021:€ 2,241,000

Individual part:€ 945,000
Achievement:
140%

Common Collective
Component:€ 1,296,000
Achievement:
192%

4
Performance Achievement – Common Collective Component
According to the policy applicable for the financial year 2021, the Common Collective Component for the Company consolidated
achievement amounts to 192%. It is based on an achievement of 200% of target EBIT, 200% of target Free Cash Flow, and 161%of target sustainability (which is based on achievement of 200% of target reduction of CO2 emissions and 122% of target reductionof FR1). These criteria apply to all executives having a Common Collective Component in their variable remuneration.

Financial
80%

Sustainability
20%

EBIT
40%

200%

FCF
40%

200%

CO2
10%

200%

FR1
10%

= 192%

122%
MinimumAchievement0%

MaximumAchievement
200%

Maximum level of achievement for EBIT / Free Cash Flow was driven by Airbus Commercial very strong performance and good
performance of Airbus Helicopters and Airbus Defence & Space in a context of quicker than expected post COVID-19 recovery.
Normalisations were made to exclude exceptional financial impacts such as currency exchange differences.
Sustainability targets are measured by two criteria: the rolling lost time injury frequency rate (“FR1”) which is the monthly numberof lost time injuries per million worked hours averaged over 12 months) and the reduction in CO2 emissions (“CO2 Avoidance”),
each weighted for 10% of the Common Collective Performance.
–– In 2021, the consolidated rolling FR1 decreased from 3.61(1) to 3.06 leading to an overall achievement of 122%(2)–– In 2021, the CO2 emission decreased by 6% (762 ktons), which is above the targeted reduction of 3%, leading to an achievementof 200%The high level of reduction in FR1 and CO2 emissions at group level is confirming the successful and faster than anticipated year
over year reduction target.
For 2022, the Board of Directors decided to maintain the sustainability component as follows: FR1 for 50% and CO2 avoidance for50%. The target for 2022 is a reduction of FR1 by 15% in Airbus Commercial and 10% in Airbus Defence and Space and 10% at
Airbus Helicopters versus our actuals 2021 rolling FR1 and a reduction of CO2 emissions of our industrial sites and operations by 5%.
(1) Restatement of 2020/2021 actual figures of 3.81/3.21 respectively due to increased scope.
(2) Based on the weight of each business.

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Performance Achievement – Individual Component
The Individual Component in 2021 results from an achievement level of 140%, assessed by the RNGC and approved by the Boardof Directors on the basis of achievement demonstrated on different criteria defined at the beginning of the year, as summarisedin the table below:
OBJECTIVE

TARGET

Weight (%)

Achievements (%)

30%

128%

40%

150%

30%

140%

100%

140%

Outcomes element
2021 Top Company
Objectives

Personal Objectives-- Customer-- Industrial Performance-- People-- B137 Sustainability-- Enable the Future-- Prepare Airbus for post COVID-19-- Consolidate our market position in commercial aviation-- Secure /Finalise the key strategic military programmes-- Environment, Social and Governance-- Set Airbus D133 onto the right trajectory for the Future

Behaviour element
Personal Focus-- Ethics & Compliance-- Personal Development-- Leadership Team Development

The Individual component has been assessed according three sets of complementary objectives:–– Top Company Objectives Assessment – accounting for 30% of the total Individual Component–– CEO Personal objectives – accounting for 40% of the total Individual Component–– CEO Personal Focus – accounting for 30% of the total Individual Component

I. Outcomes element
A. 2021 Top Company Objectives
They have been defined, structured around five clusters:–– Customer;–– Industrial Performance;–– Financial Performance;–– People;–– Sustainability;–– Enable the Future.
A series of KPIs and associated targets have been set at the beginning of the year, for each of the clusters.
Each of the KPIs have been measured and compared to target, leading to a global measurement of the TCOs achievement at 128% of
the targets, as per details shown on the table “summary CEO achievement – Individual Component” at the beginning of this chapter.
B. CEO Personal Objectives
Consistently with the TCOs, Individual Objectives have been set up specifically for the CEO.
They are structured around five priorities, detailed below.
Each of the priorities have been assessed by the RNGC leading to a global achievement of 150% for the Personal Objectives, as
per details shown on the table “summary CEO achievement – Individual Component”.
The main and most noticeable factors for each of the five priorities determining the achievement level of CEO Personal Objectives
included, but not limited to:
1. Prepare Airbus for post COVID-19–– Despite disruption within the Supply Chain, achieved a strong alignment to secure single aisle family ramp up;–– A total of 611 commercial aircraft were successfully delivered, in line with 2021 delivery Guidance;–– Restructuring of our industrial set up, as an enabler of increased competitiveness.
2. Consolidate our market position in commercial aviation–– A strong single aisle market position achieved with 49% of market share and 24% of widebody market share including thelaunch of the A350 Freighter programme;–– Gross commercial aircraft orders totalled 771 with net orders of 507 aircraft after cancellations;–– This year, the WTO dispute has been settled, putting an end to 17 years discussions with the US.

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4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

3. Secure / Finalise the key strategic military programmes–– Eurodrone’s negotiations successfully completed in 2021 resulting in a signature of the contract in February 2022;–– Tiger MKIII contract signed;–– Future Combat Air System (“FCAS”), negotiations with the partner companies and customers are ongoing.
4. Environment, Social and Governance–– Leading the decarbonisation of the aerospace sector aiming to bring the first zero emission commercial aircraft to market by2035. To this end, the Company’s CO2 emissions decreased by 6% (762 ktons), which is above of the targeted reduction of 3%;–– Enhancing the current product and services portfolio contributing positively to climate change mitigation and adaptation;–– Strong focus to push our Health and Safety standards towards industry benchmarks, through standard processes deployment,
and extensive training tailored to different population. As a result, FR1 target over-achieved;–– My Working Environment Survey in order to measure engagement of our employees, and roadmap defined in order to tackle
main pain points (see details in Chapter 6).
5. Set Airbus on the right trajectory for the future–– Internal Transformation Programme has been (re)launched, and reset in a Post COVID-19 world. “Next Chapter Rewired” isfocusing on creating the conditions for next generation digital and decarbonised products and services.

II. Behaviour element

4

The “behaviour element” accounts for 30% of the total Individual Component and has been assessed around three axis:–– Ethics & Compliance;–– Personal Development;–– Leadership Team Development.
Each of the priorities have been assessed by the RNGC leading to a global achievement of 140% for the Personal focus Objectives,
as per details shown on the table “summary CEO achievement – Individual Component”.
A. Ethics & Compliance
Ethics & Compliance (E&C) continues to be a key focus area for the Company and the way the business is done:–– Dedicated E&C focus during monthly executive and leadership meetings in February 2021, May 2021 and December 2021.
–– Dedicated Export Control session during the February Executive Committee.
–– Dedicated E&C workshop in December at Executives Leadership Meeting (ELM).
From 1 October 2020 to 30 September 2021, the Company’s employees followed 284,774 Ethics & Compliance e-learning sessions.
In 2021, 90% higher risk third parties were trained on Ethics & Compliance requirements and expectations.
B. Personal Development
The CEO is leading by example and has set axis of development supported by a coach following feedback sessions performed
with his team members.
C. Leadership Team Development–– The new composition of the Executive Committee has been implemented, including the nomination of Sabine Klauke, Chief
Technical Officer, Catherine Jestin, EVP Digital and Transformation Management and Alberto Gutierrez, Chief Operating Officer
for the Commercial Aircraft business. Furthermore, internal succession plans and training opportunities were reviewed to ensurethat the strength of the Company’ internal talent remains engaged and monitored.

d) Long-Term Incentive Plan
2021 Grant
In 2021, under the Company’s LTIP, the Board decided to grant only Performance Shares, and no Performance Units. This applies
to the CEO as well as to all beneficiaries of LTIP. The value of the Performance Share award has been capped at 100% of theBase Salary, in line with the current Remuneration Policy as validated by the AGM 2020, which then represents one third of the
CEO’s target Total Direct Compensation. The table below gives an overview of the Performance Shares granted to the CEO in
2021 pursuant to the LTIP:
SHARE PLAN: NUMBER OF PERFORMANCE SHARES

Guillaume Faury

Granted in 2021

Vesting dates

12,121

Vesting schedule is made up of one tranche expected in May 2025

The grants in 2021 were performed in compliance with the performance measures (average EPS (75%) and cumulative FCF (25%))
described in paragraph 4.2.1.1 item e). As per the current Remuneration Policy, the Performance Shares granted in 2021 will vest
in one tranche (in May 2025).

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4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

Vesting Values in 2021
In 2021, the CEO received both cash payments and vested shares in connection with the vesting of 2016 and 2017 LTIP awards:–– Cash: the total cash payment to the CEO amounted to € 324,509 in 2021.
–– Shares: in connection with the 2017 LTIP award, the CEO received 2,202 vested shares on 5 May 2021.

LTIP overview: granting and vesting
Date ofgrants

Grant
Type

NumberShare priceat grant date

Value atgrant date

Units withperformanceachievement

Performanceachievement

Dates
of vesting

Share value atvesting dates(*)

1st vesting
7 May 2020
€ 56.27

2016

Units

5,696

€ 52.67€ 300,008

75%

4,272

2 vestings in2020 -2021

2016

Shares5,696€ 52.67€ 300,008

75%

4,272

1 vesting in
2020

7 May 2020
€ 53.80

2017

Units

4,404

€ 73.81€ 325,059

50%

2,202

2 vestings in
2021 -2022

1st vesting
5 May 2021
€ 100.25

2017

Shares4,404€ 73.81€ 325,059

50%

2,202

1 vesting in
2021

5 May 2021
€ 97.58

2018

Units

4,208

€ 106.94€ 450,004

50%

2,104

2 vestings in
2022 -2023

Not yet known2018

Shares4,208€ 106.94€ 450,004

50%

2,104

1 vesting in
2022

Not yet known

2019

Units

5,530

€ 122.06€ 674,992

Not yet known

Not yet known

2 vestings in
2023 -2024

Not yet known

2019

Shares5,530€ 122.06€ 674,992

Not yet known

Not yet known

1 vesting in
2023

Not yet known

2020

Units

9,920

€ 68.04€ 674,957

Not yet known

Not yet known

2 vestings in
2024 - 2025

Not yet known

2020

Shares

9,920€ 68.04€ 674,957

Not yet known

Not yet known

1 vesting in
2024

Not yet known

2021

Shares12,121€ 111.38€ 1,350,037

Not yet known

Not yet known

1 vesting in
2025

Not yet known

2nd vesting
5 May 2021
€ 100.25

Calculations may involve rounding to the nearest unit.
* Vesting will occur according to the respective rules and regulations of each plan.
100% of units and shares granted since 2016 are conditional to the achievement of performance conditions.
NOTE: 2016 to 2018 awards were granted to Mr Faury before his appointment as CEO and should vest during his mandate.

Performance Conditions of LTIP 2017:–– The performance conditions for LTIP 2018 were determined as follows: if the Company reports a positive cumulative EBIT, aminimum portion of 50% of the Performance Units / Shares vest. If the Company reports a negative cumulative EBIT resulting
from exceptional circumstances, the Board of Directors can decide at its sole discretion to vest a maximum portion of 50% of
the Performance Units / Shares.
–– 50% to 150% of the allocation would be granted depending on the compounded achievement of the two following performance
criteria:–– 75% of average EPS (“Ave EPS”): determined on a linear basis depending on three-year Ave EPS for the 2018, 2019 and 2020
fiscal years, with the three-year Ave EPS target for an allocation of 100% equal to € 6.73; and–– 25% of cumulative FCF (“Cum FCF”): determined on a linear basis depending on three-year Cum FCF for the 2018, 2019 and2020 fiscal years, with the three-year Cum FCF target for an allocation of 100% equal to € 13,000 million.

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4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

Review of Achievement of Performance Conditions:
On 16 February 2022, the Board of Directors noted the achievement of the performance conditions of the 2018 plan, i.e. for the
2019, 2020 and 2021 fiscal years. The three-year average EPS was € 2.27 and the three-year Cum FCF was € 3,230 million, after
normalisation to align them with policies in force when setting the target (notably IFRS 15 and A220 impacts).
The cumulative EBIT for the 3-year period is positive, leading, according to the policy, to the vesting of 50% of Performance Shares
and Units. The positive performances of 2019 and 2021 exercises did not mitigate the 2020 exercise strongly impacted by thesanitary crisis leading to no vesting above 50%.
For reasons of confidentiality, the precise targets set for the average EPS and cumulative Free Cash Flow, even though they havebeen properly established and validated in a suitable manner, cannot be publicly disclosed as these objectives are considered ascompetitive sensitive information. Nonetheless, in the spirit of providing the highest level of transparency to our shareholders andto adhere to best practices, retrospective information demonstrating the stringency of the targets set by the Board of Directors isprovided for the previous LTIP, as follows:

Date ofgrants
2016

2017
2018

KPI

Numberof units

Ave EPS

Target for
a 100%
allocation

Performanceachievement in
Achieved
percentage€ 4.40€ 3.3550%

Cum FCF€ 5,774m€ 11,218m

150%

Ave EPS

€ 6.00€ 1.8350%€ 9,339m€ 4,331m

50%€ 6.73€ 13,000m€ 2.27€ 3,230m

50%
50%

Cum FCFAve EPS
Cum FCF11,392

8,808
8,416

Compounded
performanceachievement inpercentage

Resultingvesting in
numberFor comparison,
average EPS for thelast 3 reported years
at the date of grant

75%

8,544

€ 2.76(1)

50%

4,404

€ 2.28(2)

50%

4,208

€ 2.81(3)4(1) Average EPS of 2015, 2014 and 2013.
(2) Average EPS of 2016, 2015 and 2014.
(3) Average EPS of 2017, 2016 and 2015.

Based on the above, the ratio between the fixed part of
the remuneration of the CEO in 2021 (Base Salary, annual
contribution to the Company’s defined contribution pension
plan and benefits) and the variable part of the remuneration(Variable Remuneration related to 2021 paid-out in 2022 andLTIP vesting in 2021) is 41% / 59% (versus 49% / 51% in 2020).
Based on the above, the ratio between the fixed part of
the remuneration of the CEO in 2021 (Base Salary, annual
contribution to the Company’s defined contribution pension
plan and benefits) and the variable part of the remuneration(Variable Remuneration related to 2021 paid-out in 2022 andLTIP vesting in 2021) is 41% / 59% (versus 49% / 51% in 2020).

e) Share Ownership
The CEO owned 24,495 Airbus SE shares on 31 December 2021.
The CEO has reached the target of 200% of the Base Salary in
2021 thanks to a personal investment plan in Airbus SE shares.
Please refer to the AFM website www.afm.nl for any further
information related to the transactions of the CEO.

f) Employee Share Ownership Plan (ESOP)In March 2021, the Company offered all eligible employees theopportunity to subscribe to a share matching plan, throughwhich the Company matches a certain number of directly
acquired shares with a grant of matching shares. This ratio varies
depending on the number of shares acquired at fair market value
by the employees, with a maximum discount of 44%. The totaloffering was up to 2.2 million shares of Airbus SE, open to all
qualifying employees. Information about the plan can be foundon the Company’s website.

Under the umbrella of the ESOP 2021, a dedicated UK tax
advantageous Share Incentive Plan (“SIP”) was also deployedin March 2021.
Although the CEO was eligible for the plan, he did not participate
in the ESOP 2021 plan leaving more shares for employees inorder to favour the development of employee shareholding.

g) Benefits
Costs of benefits provided through applicable mandatory
collective and social security plans are accounted for amongsocial charges (please refer to Note 34 to the IFRS Consolidated
Financial Statements for further details). The monetary value ofother benefits provided to the CEO in 2021 amounts to € 32,479(vs € 33,790 in 2020).

h) Retirement
Until the end of 2019, the retirement benefit of the CEO accrued
through a defined benefit commitment. Following the Boardof Directors decision approved in the AGM 2020, the accrued
pension rights under this commitment have been frozen basedon the seniority of the CEO as Executive Committee member
at the end of 2019. A replacement target ratio has therefore
been set at 52% of his Base Salary (i.e. 26% of the sum of his
Base Salary and his target VR) and will no longer accrue. The
pension rights under this commitment remain unvested until theretirement date of the CEO.
The pension rights arising from the Company’s defined
contribution plan (i.e. contribution of 20% of the pensionable
remuneration, which is the Base Salary and the most recently
paid VR) are deducted from the frozen pension rights describedabove.

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4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officers

The present value of the remaining CEO’s pension obligation
related to the frozen defined benefit commitment is estimatedannually by an independent actuarial firm according to theinternational accounting standard IAS19 as applied by theCompany for post-employment benefits. As of 31 December
2021, the defined benefit obligation amounted to € 9,046,433(€ 9,423,777 in 2020). This obligation has been accrued in the2021 Consolidated Financial Statements and will be updated
annually up to the retirement date of the CEO considering futurechanges on economic assumptions or other factors like salary
increase.
For the fiscal year 2021, the cost related to the CEO’s pension
rights accrued under Company’s plans during the year
represented an expense of € 1,138,794 (versus € 1,179,332 in2020)).
The annual cost of pension rights accrued under applicablemandatory collective and state pension plans are accounted
for among social charges (please refer to Note 34 to the IFRS
Consolidated Financial Statements for further details).

i) Clawback
The Board of Directors did not apply any clawback in 2021.

j) Pay Ratio
The Dutch Corporate Governance Code recommends that theCompany provides a ratio comparing the compensation of the
CEO and that of a “representative reference group” determinedby the Company.
The Company’s pay ratio is calculated by comparing thecompensation of the CEO with the average compensation of fulltime equivalent permanent employees from France, Germany,
the UK and Spain for the Company, excluding subsidiaries(encompassing around 99,000 employees).

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Taking into account stakeholders expectations, the aggregatecompensation over the fiscal year that was used as a reference
amount has changed to calculate the 2021 ratio: in addition
to the gross sum of the Base Salary, annual bonus, profit
and success sharing, overtime, premium for work conditions
and other premiums that was taken into account in previous
calculations, the social charges, the value of benefits and pension
contributions and the face value of LTIP at grant date have been
included.
Based on this new methodology, the ratio between thecompensation of the CEO (including base salary, variable
remuneration, social charges, benefits, pension contributionsand LTIP grant face value) and the average compensation of
full-time equivalent permanent employees for the fiscal year
to which this report relates is 59 (for 2020: 58 based on the
new methodology as described above) (rounded to the nearest
integer).
Note for information: The evolution of the pay-ratio between
2020 and 2021 based on the new methodology has been
considered by the RNGC when discussing the CEO remunerationfor 2022.

k) Severance
No payment has been made to the CEO in 2021 related toseverance or other termination indemnity.
Under the current CEO’s appointment terms and conditions,the payment of an indemnity in case of termination would be
subject to performance conditions. These conditions would be
fulfilled if the collective and individual components of the VR forthe last two financial years preceding the financial year during
which the termination occurs have been assessed by the Boardof Directors at 100% or more.

4. Corporate Governance /4.2 Interests of Directors and Principal Executive Officersl) Development of the compensation
The table below provides an overview of the development of the direct cash compensation paid to the CEO during a financial year
composed by the Base Salary plus the VR (as defined below) and of the Employee Compensation (as defined below).
Financial year

2021

2020

2019

2018

2017

1,350

1,350

1,392(1)

1,500

1,500

I. CEO’s direct cash compensation
Annual Base Salary (in € thousand)VR (in € thousand)

1,404

1,553

2,318

2,168

1,913

2,754

2,903

3,710

3,668

3,413

Annual Variation-5.1%-21.8%%

+1.1%

+7.5%

-0.6%

II. Long-Term Incentive Plan (in € thousand)(3)

1,350

1,350

1,350

-

1,500

EBIT Adjusted (in € million)

4,865

1,706

6,946

5,834

4,253

Annual Variation

+185%

-75%

+19%

+37%

+8%

FCF before M&A and customer financing (in € million)

3,515(6,935)

3,509

2,912

2,949

Annual variation

n.a

-298%

+21%

-1%

+109%

IV. Employee Compensation (in € thousand)(4)

73.4

72.0

75.1

73.6

71.0

+2.0%

-4.1%

+2.0%

+3.6%

0.0%

(2)

Total

III. Company Performance

Annual Variation

4(1) Base salary 2019 relates to the former CEO up to 10 April 2019 and to the current CEO from 10 April 2019.
(2) VR paid during the financial year at stake in relation to the previous financial year. In 2020, the VR paid is related to the former CEO from 1 January 2019 up to 10 April 2019 (basedon target) and to the current CEO from 10 April 2019 up to the end of the year 2019. As a reminder, the current CEO decided in 2020 to donate the equivalent to his VR related to2019 to non-governmental organisations and humanitarian organisations.
(3) Face value of LTIP granted in the financial year. No LTIP was granted in 2018 to the former CEO due to his future departure.
(4) Average compensation of full-time equivalent permanent employees from France, Germany, the UK and Spain for the Company, excluding subsidiaries, composed by gross sumof the Base Salary, annual bonus, profit and success sharing, overtime, premium for work conditions and other premiums. For the 2020 financial year, the amount presented has
been adjusted based on final figures. For the 2020 financial year, the amount presented has been adjusted based on final figures excluding impact on non-active workforce related
to the sanitary crisis. For the 2021 financial year, the amount presented is still an estimate and will be adjusted next year.

4.2.1.4 Implementation of the Remuneration Policy in 2021: Non-Executive Directors
This section describes how the Remuneration Policy was
implemented in 2021 in respect of the Non-Executive Directors.
In line with the Remuneration Policy, the implementation thereofwith regard to the Non-Executive Directors aims at ensuring faircompensation and protecting the independence of the Board’s
Members. Their remuneration should be commensurate to thetime spent and the responsibilities of their role on the Board of
Directors.
The last review of the Board remuneration was undertaken
in 2018 with the support of an independent consultant. The
Board remuneration is in line with market practice, incentivises
attendance and recognises the strategic role played by the Boardof Directors in the Company’s developments. The CEO is the
only Member of the Board of Directors who is not entitled to any
Board membership fee.

In 2021, Non-Executive Members of the Board of Directors wereentitled to the following fees:a) Board fees:–– fixed fee for membership of the Board of Directors (EUR/year):–– Chairman of the Board: 210,000,–– Member of the Board: 80,000;–– attendance fees (EUR / Board meeting):–– Chairman: 15,000,–– Member: 10,000.
Attendance fees shall decrease by 50% in case of an attendanceby phone or a Board meeting held by phone.
b) Committee fees:–– fixed fee for membership of a Committee (EUR/year):–– Chairman: 30,000,–– Member of a Committee: 20,000;–– attendance fee for membership of a Committee applicable
to chair and members (EUR / additional meeting above four
meetings per Committee per year, whether these meetings
were held physically or by phone):–– physical participation: 3,000 if the Chair or Member is basedin Europe and double attendance fee amount, i.e. 6,000 if
the Chair or Member is based outside Europe,–– participation by phone (whether the meeting is held physicallyor by phone): 1,500.

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The remuneration of the Non-Executive Members of the Board of Directors was as follows:
2021

2020

Fixum(1)AttendanceFees(2)

Total

Fixum(1)AttendanceFees(2)

Total

René Obermann(3)210,000

90,000300,000

117,738

76,250193,988
178,000(In €)

Non-Executive Board Members
Victor Chu

100,000

43,000143,000

100,000

78,000Jean-Pierre Clamadieu(4)130,000

67,500

197,500

127,087

90,000217,087

Ralph D. Crosby Jr.

100,000

61,000161,000

100,000

83,000183,000
200,000

Lord Drayson

120,000

49,500169,500

120,000

80,000Mark Dunkerley(5)100,000

66,000166,000

70,87948,000118,879

Stephan Gemkow(5)100,000

63,000163,000

70,87958,000128,879

Catherine Guillouard

130,000

67,500

197,500

130,000

93,000223,000

María Amparo Moraleda Martínez

130,000

54,500184,500

130,000

85,000215,000

Claudia Nemat

100,000

56,500156,500

100,000

80,000180,000

Carlos Tavares

80,00045,000125,000

80,00070,000150,000
96,731Former Non-Executive Board Members
Denis Ranque(6)N/A61,73135,000Hermann-Josef Lamberti(7)N/A35,27435,00070,274

1,243,588

911,250

2,154,838

Total

1,300,000

663,500

1,963,500(1) Fixum includes a base fee for Board membership and Committee membership within the Audit Committee, the Remuneration, Nomination and Governance Committee(“RNGC”) and/or the Ethics, Compliance and Sustainability Committee (“ECSC”) as the case may be. The fixum for the year 2021 was paid 50% in January 2021 and 50% in
July 2021. The fixum for the year 2020 was paid 50% in January 2020 and 50% in July 2020.
(2) 2021 attendance fees include the Board attendance fees and the fees in relation to Audit Committee, RNGC and ECSC meetings. The Board attendance fees related to the firstsemester 2021 were paid in July 2021, those related to the second semester 2021 were paid in January 2022. The Committees’ attendance fees related to full year 2021 were
paid in January 2022.
(3) Chairman of the Board of Directors since 16 April 2020. Member of the Audit Committee until 16 April 2020. Member of the former Ethics & Compliance Committee between
30 July 2019 and 16 April 2020. As a reminder, René Obermann waived half of his 2020 remuneration (including fixum and attendance fees as Chairman of the Board).
(4) Member of the former Ethics & Compliance Committee until 16 April 2020. Chair of the ECSC since then.
(5) Member of the Board of Directors and of the Audit Committee since 16 April 2020.
(6) Chairman of the Board of Directors and of the former Ethics & Compliance Committee until 16 April 2020.
(7) Member of the Board of Directors and of the Audit Committee until 16 April 2020.

The total aggregated remuneration (i.e. fixum and attendancefee) of the Non-Executive Members of the Board of Directors
was respectively € 2,350,176 in 2019, € 2,010,910 in 2018 and€ 2,080,403 in 2017.
The applicable fixum for Board chair(wo)manship as well as
the applicable attendance fees for Board membership andchair(wo)manship remain unchanged since 1 January 2016
(first comprehensive revision since 2007) following the decision
made at the 2016 AGM to increase the remuneration of the Chair(fixum by € 30,000 and attendance fees by € 5,000) and double(to € 10,000) the attendance fees of the non-executive Board
Members in order to be in line with market practice, incentivise
attendance and recognise the strategic role played by the Boardof Directors in the Company developments. The applicable fixumfor Board membership as well as Committee membership andchair(wo)manship remain unchanged since 2007.
The applicable attendance fees for Committee membership
remain unchanged since 1 January 2019 following the decision
made at the 2019 AGM to allocate an attendance fee above

four meetings per Committee per year in order to take into
account Directors’ attendance at a greater number of Committee
meetings when the workload substantially intensifies due to
exceptional circumstances.

4.2.1.5 Miscellaneous
Policy for Loans and Guarantees Granted
The Company’s general policy is not to grant any loan to themembers of the Board of Directors. Unless the law provides
otherwise, the members of the Board of Directors shall bereimbursed by the Company for various costs and expenses,
like reasonable costs of defending claims. Under certain
circumstances, such as an act or failure to act by a member ofthe Board of Directors that can be characterised as intentional,
intentionally reckless, or seriously culpable, there will be noentitlement to this reimbursement. The Company has also
taken out liability insurance (“D&O” – Directors & Officers) forthe persons concerned.

4.2.2 Long-Term Incentives Granted to the Chief Executive Officer
See “– 4.3.3 Long-Term Incentive Plans”.

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4. Corporate Governance /4.3 Employee Success Sharing and Incentive Plans

4.2.3 Related Party Transactions
Reflecting Article 2:129(6) of the Dutch Civil Code, Article 18.5 of
the Articles of Association provides that “a Director shall not takepart in the deliberations or decision-making if he has a direct orindirect personal interest which conflicts with the interests of theCompany and of the enterprise connected with it. If as a result
thereof no resolution of the Board of Directors can be adopted,
the resolution is adopted by the General Meeting”.
During the years 2019, 2020 and 2021, no agreement wasentered into by the Company with one of its Directors or principal
officers or a shareholder holding more than 5% of the voting
rights of the Company outside the ordinary course of businessand in conditions other than arm’s length conditions. For more
information, please refer to the “Notes to the IFRS Consolidated
Financial Statements – Note 10: Related party transactions”

for the year-ended 31 December 2021, “Notes to the IFRS
Consolidated Financial Statements – Note 10: Related party
transactions” for the year-ended 31 December 2020, “Notes tothe IFRS Consolidated Financial Statements – Note 9: Related
party transactions” for the year-ended 31 December 2019, asincorporated by reference herein.
For a description of the relationships between the Company
and its principal shareholders, see “– General Description of
the Company and its Shareholders – 3.3.2 Relationships with
Principal Shareholders”. Other than the relationships between
the Company and its principal shareholders described therein,
there are no potential conflicts of interest between the duties
to the Company of the Directors and their respective privateinterests or other duties.

4
4.3 Employee Success Sharing and Incentive Plans
4.3.1 Employee Success Sharing and Incentive Agreements
The Company’s remuneration policy is strongly linked to theachievement of individual and Company objectives, both foreach Division and for the overall Company. Since 2012, an annual
Performance and Restricted Unit plan has been established
for the senior management of Airbus (see “– 4.3.3 Long-Term
Incentive Plans”), and employees are offered shares at favourable
conditions within the context of an Employee Share Ownership
Plan (see “– 4.3.2 Employee Share Ownership Plans”).

Success sharing schemes which are implemented in the
Company in more than 30 countries, including France, Germany,
Spain and the UK, follow one set of common rules, ensuring aconsistent application across the group.

4.3.2 Employee Share Ownership Plans
Enabling employees to participate in the results of the Company
is a key element in the Airbus benefits policy. Since its creation,
the Company has developed a philosophy based on sharing
the added value created by the Company with all employees(including the CEO). Therefore, the Company has regularly
offered qualifying employees the opportunity to purchase shareson favourable terms through the ESOP.

According to shareholders’ resolutions adopted at the AGM, thepowers to issue shares and to set aside preferential subscription
rights of existing shareholders have been granted to the Boardof Directors at the 2021 AGM. Such powers include the approvalof ESOP.

The following table summarises the main terms of the ESOPs conducted over the last three years:
Year

Price per shareNominal value per share

Number of shares issued

Date of issuance2019€ 97.76(1) / € 104.38(2) /€ 134.40(3)€1€11,728,800
55,452

2 May 201919 November 20192020

€ 136.00(1) / € 136.60(2) /€ 90.09(3)€1€1891,633
84,522

4 May 2020
18 November 20202021

€ 89.52(1) / € 93.90(2) /€ 114.90(3)€1€11,871,546
62,87418 March 2021
18 October 2021

(1) Shares purchased within context of French group employee savings plan.
(2) Shares purchased directly.
(3) Under the umbrella of the ESOP, a dedicated UK tax advantageous Share Incentive Plan, SIP, was also deployed in 2018, 2019 and 2020.

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4. Corporate Governance /4.3 Employee Success Sharing and Incentive Plans

In 2021, the Board of Directors approved a new ESOP scheme.
Eligible employees were able to purchase a fixed number ofpreviously unissued shares at fair market value (5, 10, 15,30, 60 or 100 shares). Airbus matched each fixed number ofshares with a number of the Company free shares based on adetermined ratio (5, 9, 12, 20, 35 and 55 free shares). During acustody period of at least one year, employees are restrictedfrom selling the shares, but have the right to receive all dividends
paid. Employees who directly purchased the Company shares
have, in addition, the ability to vote at the Annual Shareholder
Meetings. The subscription price was equal to the closing priceat the Paris stock exchange on 14 February 2021 and amounted
to € 93.90. Investing through a mutual fund led to a price whichcorresponds to the average price at the Paris stock exchange
during the 20 trading days immediately preceding 12 February2020 (2018: 13 February 2019), resulting in a price of € 89.52. In
2021, the Company issued and sold 1,442,645 ordinary shareswith a nominal value of € 1.00 each. In 2021, the Company
issued and distributed 491,775 matching ordinary shares with anominal value of € 1.00 each. Compensation expense (excluding
social security contributions) of € 49 million was recognised inconnection with ESOP. The Company intends to implement an
ESOP in 2022, subject to approval by the Board of Directors,
open to all qualifying employees (including the CEO). With future
ESOP, the Company intends to offer shares to eligible employees
through the issuance of shares or free distribution of shares orother existing or new securities giving access to the capital asa matching contribution. This plan would aim at favouring thedevelopment of employee shareholding.

4.3.3 Long-Term Incentive Plans
In 2014 and 2015, based on the authorisation granted to it by the shareholders’ meetings (see dates below), the Board of Directors
approved the granting of LTIP Performance Units and Restricted Units in the Company. The grant of so-called “units” will not
physically be settled in shares but represents a cash-settled plan in accordance with IFRS 2. Since 2016, the Board of Directors
approved an LTIP Performance Units and Performance Shares Plan.
The principal characteristics of these Performance and Restricted Units and Performance Shares as of 31 December 2021 are set
out in the “Notes to the IFRS Consolidated Financial Statements – Note 33: Share-based payment”. They are also summarised in
the tables below:
Sixteenth tranche
Date of Board of Directors meeting (grant date)

13 November 2014
Performance and Restricted Unit plan

Number of units granted(1)Performance Units

Restricted Units

1,114,962

291,420--

12,640-176,460-

Number of units outstanding
Units granted to:-- Mr Guillaume Faury*-- the ten employees having being granted the highest
number of units during the year 2014
(sixteenth tranche)

Total number of eligible beneficiaries

Vesting dates
Number of vested units

1,621
The Performance and Restricted Units will vest if the participant
is still employed by an Airbus company at the respective
vesting dates and in the case of Performance Units,
upon achievement of mid-term business performance.
Vesting schedule is made up of two payments over two years:
50% expected in June 2018;
50% expected in June 2019.

---814,238

271,275(1) 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 Airbus) 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).
* For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 33: Remuneration”.

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4. Corporate Governance /4.3 Employee Success Sharing and Incentive Plans

Seventeenth tranche
Date of Board of Directors meeting (grant date)

29 October 2015
Performance and Restricted Unit plan
Performance Units

Restricted Units

Number of units granted(1)926,398

240,972

Number of units outstanding

340,239

113,086

10,656-

156,446-

Units granted to:-- Mr Guillaume Faury*-- the ten employees having being granted the highest
number of units during the year 2015
(seventeenth tranche)

Total number of eligible beneficiaries

1,564
The Performance and Restricted Units will vest if the participant
is still employed by an Airbus company at the respective
vesting dates and in the case of Performance Units,
upon achievement of mid-term business performance.
Vesting schedule is made up of two payments over two years:
50% expected in June 2019;50% expected in June 2020.

4---

Vesting dates
Number of vested units

311,473

113,711(1) 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 Airbus) 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).
* For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 33: Remuneration”.

Eighteenth tranche
Date of Board of Directors meeting (grant date)

25 October 2016
Performance Units and Performance Shares plan
Performance Units

Performance Shares

615,792

621,198

Number of units/shares granted(1)Number of units/shares granted through Equity Pool

1,762

1,762

432,617436,694

5,696

5,696

79,50485,200(2)

Number of units/shares outstanding
Units/shares granted to:-- Mr Guillaume Faury*-- the ten employees having being granted the highest
number of units/shares during the year 2016(eighteenth tranche)

Total number of eligible beneficiaries

1,671
The Performance Units and Shares will vest if the participant
is still employed by an Airbus company at the respective
vesting dates and in the case of Performance Units and Shares,
upon achievement of mid-term business performance.
Vesting schedule is made up of two payments over two years:
Performance Units:
50% expected in May 2020,
50% expected in May 2021;
Performance Shares: 100% expected in May 2020--

Vesting dates
Number of vested units

----

654

654

(1) 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 Airbus) 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).
(2) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions.
* For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 33: Remuneration”.

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4. Corporate Governance /4.3 Employee Success Sharing and Incentive Plans

Nineteenth tranche
Date of Board of Directors meeting (grant date)

30 October 2017
Performance Units and Performance Shares plan
Performance Units

Performance Shares

421,638

425,702

Number of units/shares granted(1)Number of units/shares granted through Equity Pool

1,898

1,898

402,925

406,989

4,404

4,404

(2)

Number of units/shares outstanding
Units/shares granted to:-- Mr Guillaume Faury*-- the ten employees having being granted the highest
number of units/shares during the year 2017
(nineteenth tranche)

53,80857,872

Total number of eligible beneficiaries

1,601
The Performance Units and Shares will vest if the participant
is still employed by an Airbus company at the respective
vesting dates and in the case of Performance Units and Shares,
upon achievement of mid-term business performance.
Vesting schedule is made up of two payments over two years:
Performance Units:
50% expected in May 2021,
50% expected in May 2022;
Performance Shares: 100% expected in May 2021--

Vesting dates----

Number of vested units

9494(1) 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 Airbus) 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).
(2) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions.
* For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 33: Remuneration”.

Twentieth tranche
Date of Board of Directors meeting (grant date)

30 October 2018
Performance Units and Performance Shares plan

Number of units/shares granted

Performance Units

Performance Shares

278,376

281,181

6,664

6,664

281,306

284,111

4,208

4,208

(1)

Number of units/shares granted through Equity Pool(2)Number of units/shares outstanding
Units/shares granted to:-- Mr Guillaume Faury*-- the ten employees having being granted the highest
number of units/shares during the year 2018
(twentieth tranche)

23,578

Total number of eligible beneficiaries

The Performance Units and Shares will vest if the participant
is still employed by an Airbus company at the respective
vesting dates and in the case of Performance Units and Shares,
upon achievement of mid-term business performance.
Vesting schedule is made up of two payments over two years:
Performance Units:
50% expected in May 2022,
50% expected in May 2023;
Performance Shares: 100% expected in May 2022--

Vesting dates
Number of vested units

26,383
1,626

----

-

-

(1) 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 Airbus) 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).
(2) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions.
* For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 33: Remuneration”.

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4. Corporate Governance /4.3 Employee Success Sharing and Incentive Plans

Twenty-first tranche
Date of Board of Directors meeting (grant date)

29 October 2019
Performance Units and Performance Shares plan
Performance Units

Performance Shares

Number of units/shares granted(1)247,508

247,508

Number of units/shares outstanding

247,508

247,508

5,530

5,530

28,05828,058

Units/shares granted to:-- Mr Guillaume Faury*-- the ten employees having being granted the highest
number of units/shares during the year 2019
(twenty-first tranche)

Total number of eligible beneficiaries

1,576
The Performance Units and Shares will vest if the participant
is still employed by an Airbus company at the respective
vesting dates and in the case of Performance Units and Shares,
upon achievement of mid-term business performance.
Vesting schedule is made up of two payments over two years:
Performance Units:
50% expected in May 2023,
50% expected in May 2024;
Performance Shares: 100% expected in May 2023--

Vesting dates

4

----

Number of vested units--(1) 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 Airbus) 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).
* For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 33: Remuneration”.

Twenty-second tranche
Date of Board of Directors meeting (grant date)

28 October 2020
Performance Units and Performance Shares plan
Performance Units

Performance Shares

Number of units/shares granted(1)420,004

420,004

Number of units/shares outstanding

420,004

420,004

9,920

9,920

Units/shares granted to:-- Mr Guillaume Faury*-- the ten employees having being granted the highest
number of units/shares during the year 2020
(twenty-second tranche)

48,610Total number of eligible beneficiaries

The Performance Units and Shares will vest if the participant
is still employed by an Airbus company at the respective
vesting dates and in the case of Performance Units and Shares,
upon achievement of mid-term business performance.
Vesting schedule is made up of two payments over two years:
Performance Units:
50% expected in June 2024,
50% expected in June 2025;
Performance Shares: 100% expected in May 2024--

Vesting dates
Number of vested units

48,610
1,602

----

-

-

(1) 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 Airbus) 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).
* For more information in respect of units granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 34: Remuneration”.

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4. Corporate Governance /4.3 Employee Success Sharing and Incentive Plans

The information in respect of stock options and performance and restricted shares cancelled and exercised during the year are
set out in “Notes to the IFRS Consolidated Financial Statements – Note 32: Share-based payment”.
SHAREHOLDING IN THE COMPANY OF THE MEMBERS OF THE BOARD OF DIRECTORS AT THE END OF 2021
Member of the Board of Directors-- Mr Guillaume Faury-- Mr Jean-Pierre Clamadieu-- Ms. Amparo Moraleda-- Mr Mark Dunkerley-- Ms. Catherine Guillouard-- Mr Ralph Dozier Crosby, Jr.
(1) Indirect shareholding through a legal entity.

No other Member of the Board of Directors holds shares or other securities in the Company.

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Airbus / Registration Document 2021

Shareholding
24,495 ordinary shares
2,000 ordinary shares
1,700 ordinary shares
151 ordinary shares(1)185 ordinary shares
10 ordinary shares4. Corporate Governance /4

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221

Chapter

5
222

Airbus / Registration Document 2021

5
GeneralInformation
5.1

Entity Responsible for
the Universal Registration Document224

5.2

Statement of the Entity Responsible for
the Universal Registration Document

224

5.3

Information Policy

224

5.4

Undertakings of the Company regarding Information225

5.5

Significant Changes

225

5.6

Statement on Approval

225

Airbus / Registration Document 2021

223

5. General Information /5.1 Entity Responsible for the Universal Registration Document

5.1 Entity Responsible
for the Universal Registration Document
Airbus SE

5.2 Statement of the Entity Responsible
for the Universal Registration Document
The Company declares that, having taken all reasonable care to ensure that such is the case, the information contained in
the document is, to the best of the Company’s knowledge, in accordance with the facts and contains no omission likely to affectits import.
The legal person responsible for the information in the Universal Registration Document is Airbus SE. The registered office ofAirbus SE is Mendelweg 30, 2333 CS Leiden, The Netherlands.
Airbus SE represented by:
Guillaume Faury
Chief Executive Officer

5.3 Information Policy–– Contact details for information:
Mrs Helene Le Gorgeu
Head of Investor Relations and Financial Communication, Airbus SE
2 rond-point Émilie Dewoitine
BP 9011231703 Blagnac France
Telephone: +33 5 82 05 53 01
E-mail: ir@airbus.com–– Special toll-free hotlines are available to shareholders in France (0 800 01 2001), Germany (00 800 00 02 2002) and Spain(00 800 00 02 2002). An international number is also available for the rest of the world (+33 800 01 2001).
–– An e-mail box is dedicated to shareholders’ messages:
ir@airbus.com.
A website, www.airbus.com, provides a wide range of information on the Company, including the Board of Directors’ report.
Additionally, for the life of this Registration Document, copies of:–– the Company’s Articles of Association;–– the Registration Document filed in English with, and approved by, the AFM on 29 July 2019;–– the Registration Document filed in English with the AFM without prior approval on 23 March 2020;–– the Registration Document filed in English with the AFM without prior approval on 26 March 2021; and–– the Consolidated Financial Statements (IFRS) and the Company Financial Statements of Airbus SE for the years ended 31 December
2019, 2020 and 2021, together with the related Auditors’ reports, may be inspected at the Company’s registered office at:Airbus SE, Mendelweg 30, 2333 CS Leiden, the Netherlands, Seat (statutaire zetel) Amsterdam, Tel.: +31 (0)71 5245 600.
The information on the website of the Company has not been scrutinised or approved by the competent authority and does notform part of the Registration Document unless that information is incorporated by reference into the Registration Document.

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5. General Information /5.4 Undertakings of the Company regarding Information

5.4 Undertakings of the Company regarding
Information
Given the fact that the shares of the Company are listed on Euronext Paris, on the regulierter Markt (in the sub-segment Prime
Standard) of the Frankfurt Stock Exchange and on the Madrid, Bilbao, Barcelona and Valencia Stock Exchanges, the Company
is subject to certain laws and regulations applicable in France, Germany and Spain in relation to information, the main ones ofwhich are summarised in “General Description of the Company and its Share Capital – 3.1.3 Governing Laws and Disclosures”.

5.5 Significant Changes
As of the date of the Registration Document, there has been no significant change in the Company’s financial performance and there
has been no significant change in the Company’s Financial Position since 31 December 2021.

55.6 Statement on Approval
This Registration Document has been filed with the AFM on 6 April 2022 in its capacity as competent authority under the Prospectus
Regulation without prior approval pursuant to Article 9 of the Prospectus Regulation. This Registration Document may be used
for the purposes of an offer to the public of securities or admission of securities to trading on a regulated market if approvedby the AFM together with any amendments, if applicable, and a securities note and summary approved in accordance with theProspectus Regulation.

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Contact Airbus at:
2 rond-point Dewoitine
BP 9011231703 Blagnac Cedex
FranceAirbus SE
Mendelweg 302333 CS Leiden
The Netherlands