Airbus Annual Report 2023

Universal
Registration
Document
2023(Issued as of 27 March 2024)

Universal
Registration
Document
2023

Airbus SE is a European public company(Societas Europaea), with its seat in Amsterdam,
the Netherlands, which is listed in France, Germany
and Spain.
In this Universal Registration Document, the term“the Company” refers to Airbus SE together
with its subsidiaries, and the commercial aircraft segment
is referred to as “Airbus”. See “– Management’s Discussion
and Analysis of Financial Condition and Results ofOperations – 2.1.1.2 Reportable Business Segments”.
In addition to historical information, this Universal
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 othervariations 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 viewof the Company only as of the dates they are made,and the Company disclaims any obligation to update
forward-looking statements, except as may beotherwise required by law. The forward-looking

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statements in this Universal Registration Document involve
known and unknown risks, uncertainties and other factorsthat could cause the Company’s actual future results,
performance and achievements to differ materiallyfrom those forecasted or suggested herein.
These include changes in general economic andbusiness conditions, as well as the factors describedunder “Risk Factors” below.
This Universal Registration Document was prepared inaccordance with Annex 1 and 2 of Commission DelegatedRegulation (EU) 2019/980 and has been filed in English
with the Autoriteit Financiële Markten (the “AFM”) on
27 March 2024 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 Universal 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 approved by the AFM together with any amendments,
if applicable, and a securities note and summary approvedin accordance with the Prospectus Regulation.
Due to rounding, numbers presented throughout
this Universal Registration Document and other documents
may not add up precisely to the totals provided, andpercentages may not precisely reflect the absolute figures.

Risk Factors

7

1

Information on the Company’s Activities

29

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

169

3

General Description of the Company
and its Share Capital4

Corporate Governance

5

General Information

Universal Registration Document 2023

191

213

263

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2023

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Risk Factors
1.

7

Geopolitical, Global Economic
and Financial Market Risks82.

Business and Operations-related Risks123.

Legal, Regulatory and Governance Risks

20

4.

Environment, Human Rights, Health & Safety Risks 23

1
Information on the Company’s Activities

29

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

30
30
37
47
53
61
61
61

1.2
Non-Financial Information
1.2.1 The Company’s approach to sustainability
1.2.2 Climate Change
1.2.3 Pollution
1.2.4 Materials and circularity
1.2.5 Water
1.2.6 Biodiversity
1.2.7 Aviation and product safety
1.2.8 Cyber security
1.2.9 Health and safety
1.2.10 Human rights
1.2.11 Inclusion and Diversity
1.2.12 Social Dialogue
1.2.13 People
1.2.14 Business Integrity
1.2.15 Responsible Supply Chain
1.2.16 Community Impact
1.2.17 ESG Data Board
1.2.18 TCFD Correspondence Table
1.2.19 EU Taxonomy
1.2.20 GRI Index
1.2.21 SASB Correspondence Table

64
64
72
94
96
98
100
101
103
105
110
115
117
119
123
126
132
135
144
145
152
156

1.3

Other corporate activities

157

1.4

Recent Developments

167

2Management’s Discussion and Analysis ofFinancial Condition and Results of Operations
2.1
2.1.1
2.1.2

169

3.3.4
3.3.5
3.3.6
3.3.7

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

205
205
205
207

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

209
209
209
209
209

2.1.6

Operating and Financial Review
170
Overview
171
Material Accounting Considerations,
Policies and Estimates172
Performance Measures
174
Results of Operations
178
Changes in Total Equity(Including Non-Controlling Interests)
182
Liquidity and Capital Resources
183

2.2

Financial Statements

188

4

2.3

Statutory Auditor Fees

188

Corporate Governance

213

2.4

Information Regarding the Statutory Auditors

188

4.1
4.1.1
4.1.2

214
214

2.1.3
2.1.4
2.1.5

3
General Description of 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
3.1.13
3.2
3.2.1
3.2.2
3.2.3

General Description of the Company
Commercial and corporate names, seatand registered Office Commercial Name: Airbus
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

4.1.3
4.1.4

191
192
192
192
192
193
194
194
194
194
194
195
196
197
198

3.2.5

General Description of the Share Capital
199
Issued Share Capital
199
Authorised Share Capital
199
Modification of Share Capital or Rights Attachedto the Shares199
Securities Granting Accessto the Company’s Share Capital
200
Changes in the Issued Share Capital
200

3.3
3.3.1
3.3.2
3.3.3

Shareholdings and Voting Rights
Shareholding Structure at the End of 2023
Relationships with Principal Shareholders
Form of Shares

3.2.4

201
201
202
205

4.2

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

238
239
241

4.2.3

Interests of Directors and Principal
Executive Officers242
Remuneration Policy
242Long-Term Incentives Granted
to the Chief Executive Officer
258
Related Party Transactions
258

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

259
259
259
260

5
General Information

263

5.1

Entity Responsible for
the Universal Registration Document264

5.2Statement of the Entity Responsible for
the Universal Registration Document

264

5.3

Information Policy

264

5.4

Undertakings of the Company
Regarding Information

265

5.5

Significant Changes

265

5.6

Statement on Approval

265

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Risk
Factors
1.
2.
3.
4.

Geopolitical, Global Economic and Financial Market Risks
Business and Operations-related RisksLegal, Regulatory and Governance Risks
Environment, Human Rights, Health & Safety Risks

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8
12
20
23

7

Risk Factors
1 Geopolitical, Global Economic and Financial Market Risks

The Company is subject to the risks and uncertainties described below that may materiallyaffect its 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 in this section), the Company endeavours to minimise and/or manage risk in accordancewith the Company’s risk appetite. To pursue its strategy, the Company is prepared to take modest
or low event risks in order to secure profitability and cash flow and maintain its competitiveness,invest in research and development and manage a diversified business portfolio in a worldof uncertain market and economic conditions. Due to the importance of programmes andoperations for the Company, the Company focuses on the operational dimension of risk
identification and management. Within the area of legal and compliance risks, the Company
seeks to ensure that its business practices conform to applicable laws, regulations and ethicalbusiness principles, while developing and maintaining a culture of integrity. Regarding financial
risks, the Company undertakes a prudent risk approach and aims to minimise downside risk inaccordance with the Company’s risk appetite through an appropriate liquidity buffer, moderate
financial leverage and the use of hedging derivatives and other insurance programmes.

1.

Geopolitical, Global Economic and 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 or sustained high commodity prices (including gas
and oil), energy shortage or unavailability, currency exchange
rates or interest rates, rapid increases in or sustained highlevels of inflation or deflation, sovereign debt and bank debt
rating downgrades, restructurings or defaults, geopoliticaltensions (such as those reflected in the sanctions imposed
as a result of Russia’s invasion of Ukraine, or other potentiallyconflicting policies among the US, EU, Russia and China withramifications beyond their borders) or adverse geopoliticalevents (such as military or armed conflicts, acts of terrorism,
pandemics or natural disasters). Recent US administrations
have introduced greater uncertainty with respect to US tax andtrade policies, tariffs and government regulations affecting trade
between the US and other countries. Such measures, and thecountermeasures they provoked, affected and may continue toaffect countries where our customers and suppliers are located8

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or where the Company has an operational presence or to which
its financing activities are linked. For more detailed information,
see “Geopolitical, global economic and financial market risks– The war in Ukraine and armed conflicts”, “Geopolitical, global
economic and financial market risks – COVID-19 or otherpandemic risks” and “Business and operations-related risks– Availability of government and other sources of financing”.
The Company’s global presence includes France, Germany,
Spain and the UK as well as fully-owned subsidiaries in the
US, China, Japan, India and in the Middle East, a majority
shareholding (75%) of a limited partnership with the Governmentof Quebec in Mirabel, Canada (for the A220 programme) andspare parts centres in Hamburg, Frankfurt, Virginia (USA), Beijing,
Dubai and Singapore. At the end of 2023, the Company had
engineering and training centres in Toulouse, Miami, Mexico,
Wichita (USA), Hamburg, Bangalore, Beijing and Singapore.
There are also hubs and field service stations around theworld. The Company also relies on industrial cooperation andrelationships with major companies and a wide network ofsuppliers. This global presence entails the risk of being affectedby weak market and economic conditions in particular in Europe,
the US and Asia where it manufactures and where it sells the
majority of its products.

Risk Factors
1 Geopolitical, Global Economic and Financial Market Risks

As of the end of 2023, approximately 19,000 suppliers from
more than 90 countries supply parts, components, systems andservices to the Company. In 2023, the overall external sourcing
volume of the Company was estimated at around € 49 billion.
The Company requires its suppliers’ and subcontractors’
services in order to deliver its products and generate revenue
and profit. Therefore financial, economic and geopoliticalinstability in any part of the world that would affect our suppliers
or subcontractors, including conditions resulting in sharply
rising inflation, increasing energy prices, their inability to obtain
credit or even their insolvency, could impact the Company’s
ability to meet its customer obligations in a satisfactory andtimely manner. In addition, financial, economic and geopoliticalinstability affecting suppliers or subcontractors could impact
such parties’ ability to meet their obligations under risk sharing
agreements entered into with the Company. The lingering effectsof the COVID-19 pandemic and the consequences of Russia’s
invasion of Ukraine have likewise increased the Company’s
exposure to supply chain risk. For further details, please refer
to “Business and operations-related risks – Dependence on
Key Suppliers and Subcontractors”.
The behaviour of our customers and by extension, the demand
for and supply of the Company’s products and services havebeen and may continue to be materially affected by global
economic conditions. Geopolitical events (such as armed
conflicts) or events like the COVID-19 pandemic leading to
global or localised economic deterioration and resulting in adrop in air travel, could lead to protracted weak demand forcommercial aircraft. Historically, the Company has experienced
that order intake for commercial aircraft has shown cyclicaltrends, due in part to changes in passenger demand for air
travel and the air cargo share of freight activity, which are inturn driven by a range of economic variables including grossdomestic product (“GDP”) growth and private consumption
levels. Likewise, demand for military and parapublic products
may be affected by governmental budget constraints caused byeconomic pressure. As the size of the Company’s commercial
aircraft business relative to its defence, space and government
activities has grown, the latter’s ability to serve as an effective
buffer to counter commercial cycles has been diluted.
Protracted weak global economic conditions brought on by
the above-described or other factors could therefore directly
result in:–– financial distress among airlines and lessors, and potential
bankruptcies within this market;–– 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 availability of credit in the financial markets to financeaircraft purchases or increases in operating costs, or weaklevels of passenger demand for air travel and cargo activity
more generally, which in each case could negatively impact
the Company’s results of operations;–– variations in public spending for defence, homeland security
and space activities, which may lead to the termination or
reduction of future funding or to cancellations or delays

impacting existing contracts, each of 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, which are typically secured by the underlying
aircraft itself and which entail exposure to the customer
credit risk. See “Business and operations-related risks – Sales
Financing Arrangements”.
In addition, due to the lengthy terms of sales and suppliercontracts, in the aerospace and commercial aircraft industry
it is standard to include revision clauses in such contracts.
Revision clauses can be based on one or multiple indices andtherefore, can evolve due to changes in the underlying economic
measures on which such indices are based, thereby potentiallynegatively impacting the Company’s results.
The Company generally finances its manufacturing activities
and product development programmes (par ticularly
the development of new commercial aircraft), through a
combination of cash flows generated by operating activities,
customer advances, European governments’ refundable
advances and risk-sharing agreements with subcontractors.
In addition, the Company’s military-linked activities often
benefit from government-financed research and development
contracts. The Company may also elect to raise funds in thecapital markets. Unfavourable or weak economic conditions,
uncertainty or adverse trends leading to liquidity constraints or
reduced availability of financing for the Company’s customers,
suppliers, European and other governments, and other risk
sharing partners may affect the Company’s ability to financeits product development programmes and raise funds in thecapital markets. Please also refer to “Geopolitical, global
economic and financial market risks – Liquidity” and “Businessand operations-related risks – Availability of government andother sources of financing”.
The Company’s financial results may also be negatively affectedby gains or losses realised on the sale or exchange of financial
instruments; impairment charges resulting from revaluationsof debt and equity securities and other investments; interest
rates; cash balances; and changes in fair value of derivative
instruments. Periods of increased volatility in the financial
markets and overall economic uncertainty increase the riskthat actual amounts realised in the future on the Company’s
financial instruments could differ significantly from the fair values
currently assigned to them.
Although the potential negative impact of global economic
conditions has been thoroughly assessed and are continuallymonitored, the consequences thereof could have unforeseenmaterial effects on the Company’s business, results ofoperations and financial condition, particularly to the extent they
were to impact the Company’s commercial aviation activities orotherwise impact its access to financing.

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Risk Factors
1 Geopolitical, Global Economic and Financial Market Risks

Foreign Currency Exposure
In 2023, more than 75% of the Company’s revenues weredenominated in US dollars, with approximately 60% of suchcurrency exposure being “naturally hedged” by US dollardenominated costs. The remainder of costs are incurred
primarily in euros and to a lesser extent, pounds sterling andother currencies. Consequently, to the extent that the Company
does not cover its net current and future exchange rate exposure
from the time of a customer order to the time of delivery, its
profits will be affected by market changes in the exchange rateof the US dollar against these currencies.
There are complexities inherent in determining whether and when
foreign currency exposure of the Company will materialise, inparticular given the possibility of unpredictable revenue variations
arising from order cancellations, postponements or delivery
delays.
Regarding foreign currency exchange risk, 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 the Company is further exposed to the riskof non-performance or default by these hedging counterparties.
The exchange rates at which the Company 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 thecase in the past and as higher capital requirements for banks
result in higher credit charges for uncollateralised 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 and the pound sterling, in particular overthe long-term, which could have a negative effect on its financial
condition and results of operations.
Moreover, to further mitigate the impact of exchange rate
fluctuations on its profits, the Company might enter into a euro
conversion agreement with its customers to fully or partiallyconvert the payment from US dollar into euro based on an agreed
conversion rate. These agreements can be implemented at the
specific request of customers, and are accounted for in the
IFRS Consolidated Financial Statements as a contract in euros.

Since 2022 and going forward, the Company has presented
its matured hedge portfolio and euro conversion on a blended
basis and therefore blended rates reflect both the EBIT impactof hedge rates of the US dollar hedge portfolio and euro
conversion.
As of 31 December 2023, the blended portfolio amounts to
US$ 91.7 billion with maturities up to 2029 and covers a major
portion of the foreign exchange exposure expected over theperiod of the operative planning.
The portion of the Company’s US dollar-denominated revenues
that is not covered in accordance with the Company’s coverage
strategy will be exposed to fluctuations in exchange rates, which
may be significant. Furthermore, the Company is exposed tocertain other price risks such as interest rate risks, changes incommodity prices and in the price of items held in inventory.
Adverse movements of these prices may jeopardise theCompany’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 compete with
its 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 euro aretranslated into 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.

Liquidity
The Company is exposed to liquidity risk, particularly in the eventof funding needs arising during a market disruption. If liquidity risk
were to materialise, the Company could be at risk of making latepayments or not being able to pay its creditors and shareholders, or
potentially delaying or disrupting the closing of some transactions.
Liquidity risk can arise particularly when money markets and/or
debt capital markets are closed for new issuances for a periodof time. In order to mitigate liquidity risk, the Company maintains:–– significant amounts of cash or highly liquid cash equivalents
on balance sheet;–– undrawn committed credit facilities;–– diversified Euro funding programmes (such as a € 12 billion
Euro medium-term note (“EMTN”) programme, a € 11 billion
Negotiable European Commercial Paper programme and a€ 4 billion Euro Commercial Paper programme); and–– access to USD funding (through a US$ 3 billion US Commercial
Paper programme and the 144A US dollar bond market).

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On 5 July 2022, the Company signed a sustainability-linked
Revolving Syndicated Credit Facility committed by 38 banks for€ 8 billion with a maturity of five years and two extension optionsof one year (subject to banks’ approval). This facility incorporates
an adjustment mechanism that links the applicable margin of the
facility (which can go either up or down) to the achievement ofannual targets for two selected sustainability key performanceindicators related to environmental rating and health and safety.
The first extension option of one year has been exercised by
Airbus and approved by all banks except one. Save for thisbank, the new maturity of the sustainability-linked Revolving
Syndicated Credit Facility is 5 July 2028. Going forward, theCompany will continue to maintain a prudent approach when it
comes to managing its liquidity, with the objective of maintaining
its robust credit rating.

Risk Factors
1 Geopolitical, Global Economic and Financial Market Risks

The War in Ukraine and Armed Conflicts
Local or regional wars or armed conflicts may pose risks to theCompany’s operations, supply chain (relating to the production
or movement of materials or goods) and access to commodities.
To the extent such events result in reduced demand for air
travel or negative impacts on the commercial aircraft market(closing certain routes, disrupting fuel or other critical supplies,
or otherwise impinging on air traffic) they could reduce demand
for the Company’s products and services.
Russia’s invasion of Ukraine on 24 February 2022 and theresulting export control restrictions and international sanctions
against Russia, Belarus and certain Russian entities andindividuals resulted in disruption to the Company’s business,
operations (including data management) and supply chain.
In response to the export control restrictions and sanctions
enacted by the EU, the UK, the US, Canada and other countries,
the Company suspended the delivery of aircraft and support
services (including spare parts, equipment and software) tosanctioned entities and countries. The Company maintainedcompliance with all applicable regulations and sanctions on its
facilities and operations in Russia. The Representative Office in
Moscow was closed in August 2023, while the Airbus Russia

affiliate (Airbus RUS) and the Space Division’s two joint venturesin Russia (Energia Satellite Technologies and Synertech) are inprocess of being closed. For additional information on this matter,
please refer to “Legal, regulatory and governance risks – Export
controls laws and regulations” below.
The war in Ukraine has likewise increased the Company’s
exposure to supply chain disruption risk. Part of the titanium
used by the Company is sourced from Russia, both directly andindirectly through the Company’s suppliers. While geopoliticalrisks, and associated de-risking activities, are integrated
into the Company’s titanium sourcing policies, the impact ofRussia’s invasion of Ukraine (including the resulting sanctions),
may continue to affect the Company’s ability to source certain
materials and components, particularly in view of the lead timeneeded to develop alternative sources. For more details, see“Business and operations-related risks – Dependence on key
suppliers and subcontractors” and “Business and operationsrelated risks – Industrial system adaptation”. The Company’sbusiness, results of operations and financial condition may
continue to be affected by the direct and indirect impacts of
the war in Ukraine and response measures thereto.

COVID-19 or other Pandemic Risks
While the COVID-19 pandemic, the resulting health andeconomic crisis and actions taken in response to the spreadof the pandemic, including government measures, lockdowns,
travel limitations and restrictions which resulted in significant
disruption to the Company’s business, operations and supply
chain have in many ways receded, lingering effects continue
to impact the Company’s business, operations and supply
chain and its ability to deliver products and services. See also
“Business and operations-related risks – Dependence on key
suppliers and subcontractors” below for more information on
this matter.
Moreover, a localised or global resurgence of the COVID-19
pandemic or the emergence of another pandemic or widespread
human health issue could result in further government measures,
lockdowns, travel limitations and restrictions. This could negatively
impact demand for air travel and commercial air traffic, thereby
impacting the financial health and viability of operators, airlines,
lessors and suppliers and adversely affecting the Company’s

ability to deliver products and services as well as customers’
demand for aircraft and their ability to fund and take delivery ofsuch aircraft. See also “Business and operations-related risks –Commercial Aircraft and Helicopter Market Factors” for more
information on this matter.
In addition to the aforementioned effects, to the extent a
resurgence of COVID-19 was to result in further lockdowns,
travel limitations and restrictions, logistical challenges would
result that could cause further disruptions to the Company’sbusiness, its operations and supply chain and which could
adversely affect the Company’s ability to deliver products andservices as well as customers’ ability to take delivery of aircraft.
There can be no assurance that the Company’s business,
results of operations and financial condition will not be materiallyaffected by pandemics or other similar events in the future.
Please also refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 2: Macroeconomic Environment, Geopoliticaland Financial Market Risks”.

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Risk Factors
2 Business and Operations-related Risks

2.

Business and Operations-related Risks

Commercial Aircraft and Helicopter Market Factors
Historically, the Company has experienced that the commercial
aircraft market and order intake for commercial aircraft showscyclical trends, reflecting changes in demand for passenger air
travel and air freight, which in turn largely correlate to a range of
economic variables, such as GDP growth, private consumption
levels and working age population size. Other factors playing animportant role in determining the market for commercial aircraft
include (i) the average age and technical obsolescence of the
fleet relative to new aircraft; (ii) the number and characteristics ofaircraft taken out of service and parked pending potential return
into service; (iii) passenger and freight load factors; (iv) airline
pricing policies and resultant passenger yields; (v) airline
financial health; (vi) the availability of third party financing foraircraft purchases; (vii) fuel price evolution; (viii) the regulatoryenvironment; (ix) environmental constraints imposed uponaircraft operations, such as the Carbon Offsetting and Reduction
Scheme for International Aviation (“CORSIA”), carbon standards
and other environmental taxes; and (x) market evolutionary
factors such as the volume of business-related travel, the growthof low-cost passenger airline business models, the impact of
e-commerce on air cargo volumes or the consolidation of airlines.
In the future, other factors (such as the availability of SAF) may
impact the market. Geopolitical, global economic and financial
market conditions can further amplify these factors. Please also
refer to “Geopolitical, global economic and financial market risks”.
The factors described above may have a material impact
on the commercial aircraft industry and, therefore, on the
Company’s financial condition and results of operations.

In 2023, the commercial aircraft business of Airbus recorded
total revenues of approximately € 47.8 billion – representing
approximately 72% of the Company’s revenues. For information
on revenue by segment, please refer to the “Notes to the
IFRS Consolidated Financial Statements – Note 11: Segment
Information”. While historically downturns in its commercial
aircraft business have been partially mitigated by its defence,
space and government activities, the significant growth of theCompany’s commercial aircraft business relative to its otheractivities in recent years has significantly diminished this effect.
The commercial helicopter market in which the Company
operates has shown cyclical trends and could also be influenced
by factors listed above. In 2023, with 715 bookings identified,
the overall market was back to its pre-pandemic levels. In
comparison with 2022, this represents a slight increase of 1%.
From 2022 to 2023 the demand for helicopters increased inmost of the mission segments, including aerial work, public
services, emergency medical services (EMS) and energy. Market
demand decreased substantially in the commercial passenger
transport and private and business aviation segments. There wasa significant increase in demand for Super Medium, Light Twinand Medium Twin helicopters driven by the strong rebound in
the energy segment and by the demand of the EMS segment.
For further information on risks relating to specific commercial
aircraft and helicopter programmes, please refer to “Businessand operations-related risks – Programme-specific risks”.

Sales Financing Arrangements
In support of aircraft sales and deliveries, the Company may
from time to time participate in financing solutions for its
customers. From 2021 through 2023, the average number ofaircraft delivered in respect of which financing support has
been provided by Airbus amounted to approximately 1% of thenumber of deliveries over the same period. Airbus has a policy
to sell-down such financing exposure when market conditions
are sufficiently favourable, and to not hold such exposure overthe longer term.
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 residual 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 tocredit risk and aircraft residual value risk, because it generally
retains security interests in aircraft for the purpose of securing
customers’ performance of their financial obligations to

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the Company. Under adverse market conditions, the market forused aircraft could become illiquid and the market value of usedaircraft could significantly decrease below projected amounts.
In the event of a financing customer default at a time when themarket value for a used aircraft has unexpectedly decreased,
the Company would be exposed to the difference between theoutstanding loan amount and the market value of the aircraft,
net of ancillary costs (such as maintenance and remarketingcosts, etc.). Through the Airbus Asset Management department
or as a result of past financing transactions, the Company is theowner of used aircraft, exposing it directly to fluctuations in themarket value of these used aircraft.
In addition, the Company has “backstop” commitments toprovide 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 agreements
reached with customers and the market conditions at such time.
The Company remains exposed to the risk of defaults by its
customers or significant decreases in the value of the financed
aircraft in the resale market, which may have a negative effecton its future financial condition and results of operations.

Risk Factors
2 Business and Operations-related Risks

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$  67.1 billion nominal value at
31 December 2023) and cash investments (€  23.2 billion nominal
value at 31 December 2023). However, the Company has policies
in place to avoid concentrations of credit risk and to ensure thatcredit 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
Source of risk
Banks
Corporates

threshold as published by Standard & Poor’s and Moody’s (andif neither is available, 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 counterparty credit exposure of the Company is reviewed ona regular basis and the respective limits are regularly monitored
and updated. In addition to monitoring the Company’s overall
credit exposure, the Company regularly analyses counterparty
credit exposure in terms of its potential contribution to unexpected
losses. As of 31 December 2023 the Company’s credit exposure
had been estimated as follows (in € million)(1):
Exposure
3,823

Unexpected Loss Contribution

(2)

41

6,119

134

Sovereign issuers

832

7

Money market funds

12,39920

Total

23,173202(1) Not audited.
(2) Does not include the nominal value of hedging instruments.

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 in theevent of a systemic market disruption. In such circumstances,the value 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 may havean impact on the business model of banks (as did, 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
will have consequences on the funding, central clearing andcollateralisation of over-the-counter derivatives for corporations
like the Company. This may ultimately increase the cost andreduce the liquidity of the Company’s long-term hedges, forexample, as banks seek to either pass on the additional costs
to their corporate counterparties or withdraw from low-profit
businesses altogether.

Pension Commitments
The Company participates in several pension plans for both
executive and non-executive employees, some of which are
underfunded. As at 31 December 2023, the provision for retirement
plans and similar obligations amounted to € 2.7 billion (comparedto € 2.9 billion as at 31 December 2022). For information related tothese plans, please refer to the “Notes to the IFRS Consolidated
Financial Statements – Note 31: Post-Employment Benefits”. The
Company has recorded a provision in its balance sheet for its
share of the underfunding measured in accordance with IFRS
based on current estimates. These estimates will be reviewed
annually and, as the case may be, revised leading the Company
to record lower or higher provisions.

Necessary adjustments of such provisions include but are
not limited to (i) the discount factor (dependent in part oninterest rates) and the inflation rate applied to calculate the netpresent value of the pension liabilities, (ii) the performance of
the asset classes which are represented in the pension assets,(iii) behavioural assumptions regarding beneficiaries, and(iv) additional cash injections contributed by the Company fromtime to time to the pension assets. The Company has taken
measures to reduce potential losses on the pension assets andas a long-term objective to better match the characteristics of thepension assets with those of the pension liabilities. Nevertheless,any required additional provisions would have a negative effecton the Company’s total equity (net of deferred tax), which couldin turn have a negative effect on its future financial condition.

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Risk Factors
2 Business and Operations-related Risks

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 arecontinually and rapidly changing and scenarios of attacks are
becoming more sophisticated.
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. Someof the objectives of an attacker are espionage, to influence,to create an obstacle to functioning, or to extract payment.
The main cyber security risks for the Company are intrusion insystems leading to data leakage, attacks impacting the resilienceof industrial systems and compromising the development, use
or operation of products and services.
All of the above-mentioned risks are heightened in the context of
the increasingly common use of digital solutions by the Company(including greater use of cloud services, mobile devices, “internetof things”), increasingly capable adversaries and integration withthe extended enterprise. Risks related to the Company’s industrial
control systems, manufacturing processes and products are
growing with the increase of interconnectivity and digitalisation.
Moreover, a primary challenge is maintaining an appropriate
level of security of complex and legacy industrial systems toface attacks from hackers, who are constantly and rapidly
improving their techniques and skills. Further, the Company
is subject to data privacy laws in many jurisdictions, a violationof which (whether accidentally, or through a deliberate internalor external act) could result in legal, reputational, commercial,financial or other consequences for the Company.
Finally, the Company is exposed to reputational damage anddestabilisation from the growing volume of false and malicious
information injected into the 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 protection and 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, Hybrid Threats, Regional Conflictand other Catastrophic Events
Regional conflicts, terrorist attacks, public health crises (suchas the global COVID-19 pandemic), and rising military and civil
tensions have demonstrated that such events may negatively
affect public perception of air travel, which may in turn reducedemand for air travel and commercial aircraft. The outbreak ofwars, riots or political unrest or uncertainties including thoseresulting in economic effects such as recession, unemployment
or an acute increase of cost of living may also negatively affectthe public’s desire to travel by air. Furthermore, major aircraft
accidents may have a negative effect on the public’s or regulators’
perception of the safety of a given class of aircraft, a given airline,
a form of design of aircraft or of air traffic management. Flightactivity ramp-up requires particular focus on safety aspects
such as removing aircraft from storage and pilot training. As aresult of such factors, the aeronautic industry may be confronted
from time to time with events leading to sudden, short-termor prolonged reduced demand for air transport, and may becompelled to take additional costly security and safety measures.
The Company may, therefore, suffer from a decline in demand
for all or certain types of its aircraft or other products, and theCompany’s customers may postpone delivery or cancel orders.

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In addition to affecting demand for its products, catastrophic
events on a wider scale or events targeting the Company inparticular could disrupt the Company’s internal operations,
supply chain or its ability to deliver products and services.
Disruptions may take the form of direct disruptions to the supply
chain (including transportation networks), threats to infrastructure
and public services, personnel and physical security, and mayarise through terrorism or other deliberate malicious acts,
regional conflict and civil unrest, natural disasters or incidents
of another nature. In addition to purely physical incidents, “hybrid”
incidents (i.e. combining cyber and physical) may occur, such as
for example coordinated disruptions of air traffic utilising drones.
The effects of these events may be amplified if they happen on
single points of failure (SPOFs), therefore dedicated identificationand mitigation measures are maintained in this regard. Any
resulting impact on the Company’s production, services orinformation systems could have a significant adverse effect on
the Company’s operations, financial condition and results ofoperations as well as on its reputation and on its products andservices.

Risk Factors
2 Business and Operations-related Risks

Dependence on Key Suppliers and Subcontractors
The Company is dependent on the performance of numerous
suppliers and subcontractors who provide the raw materials,
parts, assemblies, systems, equipment and services required
for the Company to manufacture and deliver its products. These
suppliers and subcontractors’ financial health and ability to meettheir contractual obligations may be negatively impacted by avariety of commercial factors, including the availability and costof financing, the cost and availability of energy and raw materials(including steel and titanium and other key inputs), the ability to
attract, train and retain a suitably skilled workforce, the ability
to acquire certain non-commodity materials and components(such as semiconductors and electronic components) in therequired quantity and time frame and at a viable cost, disruptions
to transport and logistics networks and cyber security threats.
Further, macroeconomic or local economic factors (including
economic recessions and inflation), geopolitical conflicts causing
economic or logistical disruptions, changes or tightening ofexport controls and other trade regulations, sanctions andembargoes, and other legal or regulatory issues (including
environmental regulations) may negatively impact suppliers’ andsubcontractors’ viability and ability to meet their contractual
obligations. Many of the aforementioned factors continue to be
exacerbated by the lingering effects of the COVID-19 pandemic.
For additional information on risks that may impact our suppliersand contractors, and their ability to deliver, please also refer
to: “Geopolitical, global economic and financial market risks –Global economic conditions”, “Geopolitical, global economic andfinancial market risks – The war in Ukraine and armed conflicts”,“Geopolitical, global economic and financial market risks –COVID-19 or other pandemic risks” and “Legal and regulatory
risks” (in relation to international trade, tariffs, and sanctions).
In the context described above, changes to the Company’s
production or development schedules may impact suppliers andcustomers such that they initiate contractual claims for financial
compensation or they 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, natural disasters or sanctions imposed by governmental
authorities, which could interrupt deliveries. This may have anegative effect on the financial condition and results of operationsof the Company.
The Company cannot fully protect itself from non-performance ofa supplier, including in case of external factors beyond its control,
which could disrupt production and in turn may have a negative
effect on the financial condition and results of operations of theCompany. Nevertheless, the Company is striving to improve
its supply chain resilience and has implemented a robust
governance to prevent, anticipate and monitor supply chain
disruption risks and efficient management of issues.

Industrial System Adaptation
The Company is currently engaged in adapting its industrial
setup as it progresses towards its targeted commercial aircraft
production rates. In view of the complex environment in which
it operates, the Company faces challenges as it ramps up toreach its targeted rates. The Company monitors the ramp-up
capabilities of the value chain (including the supply chain) for
all commercial aircraft programmes. Issues arising across thevalue chain (including the supply chain), whether relating to
raw materials, subcontracted work packages, fixtures (suchas cabin equipment, buyer-furnished or otherwise), or otherelements, could threaten the success of the ramp-up effort.
Likewise, factors within the Company, such as human resources(right-sizing headcount and acquiring or developing the specificskills and competencies required to support the Company’s

ramp-up, and training and reskilling the existing workforce),
resource allocation and adaptation to the complex and evolving
operating environment present challenges for the Company inexecuting the ramp-up. While the Company is attempting to
mitigate potential downside outcomes in part by building up
levels of resilience to production disruptions and delays (suchas by increasing inventories or certain key inputs), achieving
the targeted production ramp-up depends not only on the
Company effectively executing its plans, but also depends on
external factors beyond the Company’s control. Failing to reachthe targeted production ramp-up may have a negative effect on
the financial condition and results of operations of the Company.
For more details on specific programme risks, see “Business andoperations-related risks – Programme-Specific Risks” below.

Technologically Advanced Products and Services
The Company offers its customers products and services thatare technologically advanced, so the design and manufacturing
and the components and materials utilised can be complex andmay require substantial integration and coordination along the
supply chain. In addition, most of the Company’s products must
function under demanding operating conditions. Throughout
the lifecycle of its products, the Company performs checks andinspections, which may result in modifications, retrofits or othercorrective actions, each of which may have an adverse effecton production, operations, in-service performance and may
result in financial repercussions for the Company. There can be
no assurance that the Company’s products or services will be
successfully developed, manufactured or operated or that they
will perform as intended. Certain of the Company’s contracts
require it to (i) forfeit part of its expected profit, (ii) receive reduced
payments, (iii) provide a replacement launch or other products orservices, (iv) provide cancellation rights, or (v) reduce the price ofsubsequent sales to the same customer if its products fail to be

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15

Risk Factors
2 Business and Operations-related Risks

delivered on time or to perform adequately. No assurances canbe given that performance penalties or contract cancellations
will not be imposed should the Company fail to meet delivery
schedules or other measures of contract performance, inparticular with respect to newer programmes and developmentsor those which are subject to more extensive updates throughout
their life. For more details on programme-specific risks, see“Business and operations-related risks – Programme-Specific
Risks” below.
In addition to the risk of contract cancellations, the Company may
also incur significant costs or suffer loss of revenues in connection
with any remedial actions required to correct performance issues

detected in its products or services. Moreover, to the extent thata performance issue is considered to have a possible impact onsafety, regulators could suspend authorisation of the affected
product or service.
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 political andgeopolitical considerations 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, or cancellations or delays impacting existing contracts
may have a negative effect on the Company’s financial condition
and results of operations. In instances where several countries
undertake to enter together into defence or other procurement
contracts, economic, political or budgetary constraints in any
one of these countries may have a negative effect with respect

to the execution of, or the performance and payment undersuch 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 anegative effect on the Company’s financial condition and resultsof operations, not only with respect to those regions but also
globally, due to complex economic interdependencies. See also
“Geopolitical, global economic and financial market risks – Global
economic conditions” for more information on this matter.

Availability of Government and other Sources of Financing
Historically, the Company and its principal competitors haveeach received various types of government financing withrespect to product research and development. However, noassurances can be given that government financing will continue
to be made available in the future. Moreover, the availability ofother outside sources of financing will depend on a variety offactors such as market conditions, the general availability ofcredit, 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. For additional
information on this matter, please also refer to “Geopolitical,
global economic and financial market risks – Global economic
conditions” and “Geopolitical, global economic and financial
market risks – Liquidity”, “Business and operations-relatedrisks – Major research and development programmes”.

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. In China, however, a
local competitor’s large aircraft (single aisle) received its typecertificate in September 2022 from the Chinese authorities, with
its first aircraft having gone into commercial operation during2023 serving the Chinese domestic market. The Company
therefore also faces competition from a third player, in China
only, as the Chinese certification has not yet been recognisedby regulators outside of China. The design, development

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and production of commercial aircraft involves high barriers
to entry, including certification requirements, large investment
needs, skilled competencies, access to technology and longdevelopment cycles. Although the two main market participants
for aircraft with more than 150 seats have secured significant
order backlogs, market competition could further increase(through the further entry of new competitors or the launch of
new products or services), which could have a negative impact
on the Company’s revenues, future financial condition and resultsof operations.

Risk Factors
2 Business and Operations-related Risks

More broadly, new players are operating or seeking to operate
in the Company’s existing markets, which may impact thecompetitive structure and profitability of these markets. In
addition, enterprises with different business models andalternative technologies could substitute the Company’s services
and some of its products or component parts thereof. With
respect to certain markets or products, competitors may havemore extensive or more specialised engineering, manufacturing,support and marketing capabilities, and these competitors may
develop the capability to manufacture products or provide
services similar to those of the Company, in direct competition
with the Company, which could have a negative impact on the
Company’s revenues, future financial condition and results ofoperations. There can be no assurance that the Company will
maintain its position in the market or compete successfully inthe future, or that competition with respect to its products orservices will not result in reduced revenues, market share or
profit.

In addition, the contracts for many aerospace and defence
products are awarded, implicitly or explicitly, on the basisof home country preference or geopolitical considerations.
Although the Company is a multinational company (which helps
to broaden its “home” market), it may remain at a competitive
disadvantage in certain countries, especially outside of Europe,
relative to local competitors with respect to certain products. The
strategic importance and political sensitivity of the aerospaceand defence industries means that political considerations willplay a role in the choice of many products and services for theforeseeable future. Further, the contracts for many aerospaceand defence products and services are from time to timeassociated with offset or localised obligations. The Company
may face difficulties to meet such obligations (especially withrespect to engaging local country assets) while and at the sametime optimising its industrial base and supply chain. Please also
refer to “Business and operations-related risks – Dependence
on public spending and on certain markets”.

Major Research and Development Programmes
The business environment of many of the Company’s principal
operating business segments is characterised by extensive
research and development costs requiring significant upfront investments with a high level of complexity. For the year
2023, research and development expenses were € 3.3 billion(compared to € 3.1 billion for 2022 and € 2.7 billion for 2021).
Due to the technologically advanced and complex nature of theCompany’s products and the long period (including ramp uptime) it takes to produce them, the business plans underlying
such investments often entail a long payback period to recoup
these investments and assume a certain level of return overthis period in order to justify the initial investment. There canbe no assurance that the commercial, technical and market
assumptions underlying such business plans will be met, andconsequently that the payback period or returns contemplated
therein will be achieved.
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
to meet its specific needs. Demand for such employees may,depending on the current labour market, often exceed supply,
resulting in intense competition for qualified professionals.
The Company’s global attrition rate in 2023 was 4.1% overall(including subsidiaries) (compared to 5.0% in 2022 and 7.4%
overall in 2021). There can be no assurance that the Company
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 technical skills
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 ability to successfully execute

its research and development programmes, and more generally
could negatively affect the Company’s financial condition andresults of operations.
The Company’s sustainability ambitions for its future generationsof aerospace products face significant technological, skills andindustrial challenges. These ambitions require cross industry andcross government collaboration to address the technologicalrisks that need to be overcome. For more detailed information
see “Environment, human rights, health & safety risks – Climaterelated risks” below.
The Company continues seeking to further its development insustainable technologies. This commitment directs a significant
proportion of its longer-term technology research efforts for
future products and services, and is based on solving complex
problems backed by exploring multiple technology pathways.
Realisation of this ambitious programme is achieved with the helpof national research funding through frameworks such as CORAC(France), LUFO (Germany), ATI (UK), CDTI (Spain) and Horizon
Europe, which enable the Company and the wider aviation
ecosystem to mature and develop required key competencies
and technologies. The loss or absence of such funding could
negatively affect the Company’s ability to successfully execute
its research and development programmes and could negatively
affect its future prospects. For further details, please refer tosection “Business and operations-related risks – Availability of
government and other sources of financing”.
No assurances can be given that the Company will achieve
the anticipated level of returns from any of its research anddevelopment programmes and other development projects,
which may negatively affect the Company’s financial condition
and results of operations and competitiveness.

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Risk Factors
2 Business and Operations-related Risks

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 businesses, technologies or products and the related
operations and human resources. There can be no assurance thatany of the businesses that the Company may acquire or divest
will be integrated or carved out successfully and in the planned
time frame or that they will perform as planned and deliver the
expected synergies or cost savings once integrated or separated.
In addition, regulatory or administrative requirements, opposition
by social partners or other stakeholders, or other contractualor financial market conditions can prevent transactions frombeing finalised. Each acquisition, divestment, joint venture andstrategic alliance is highly specific in its nature, purpose, risks andopportunities. The Company identifies risks through a detailed
and systematic due diligence process and addresses identified
risks through price mitigation and/or appropriate and specificcontractual mechanisms (such as indemnification provisions),in each case reflecting extensive negotiations with the sellers/
buyers and/or partners. The Company’s business, results ofoperations and financial condition may be materially affected if
any of these transactions are not successfully completed or do
not produce the expected benefits.

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 potentially allowing for the service provider to seek
additional customers for unused capacity.

The Company is party to PPP and private finance initiatives(“PFI”) contracts: for example two UK Ministry of Defence
projects, Skynet 5 and related telecommunications services,and the AirTanker (“FSTA”). One of the complexities presented
by PFIs lies in the allocation of risks and the timing thereof among
different parties over the lifetime of the project.
There can be no assurance regarding the extent to which theCompany will efficiently and effectively (i) compete for future PFI or
PPP programmes, (ii) administer the services contemplated undersuch 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 duration of PPP and PFI
programmes, which tend to be of long duration. For further details,
please refer to “Business and operations-related risks – Availabilityof government and other sources of financing”.

Programme-specific Risks
In addition to the risk factors mentioned above, the Company
also faces programme-specific risks that could have a material
impact on the Company’s business, results of operations andfinancial condition.
The Company faces certain main challenges across its
commercial programmes, including:–– commercial adaptation to achieve planned production
rate increases while maintaining high safety and quality
standards, including focus on regulatory obligations suchas our Production Organisations Approval;–– monitor and support the supply chain with a specific focus on
certain key suppliers, including engine manufacturers (withrespect to the availability and maturity of both production andin-service engines, including the effect of required updates
and maintenance cycles) and producers of key elements
such as wings, aeroframe components, and other production
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Universal Registration Document 2023–– protect priority projects and deliver developments as perplan in an environment of increased certification scrutiny andgreater complexity, including A321XLR, A220, ACJ TwoTwenty,
A350 Freighter, A350-1000 Sunrise project, and Digital (DDMS
and Skywise).
A320 Family programme. In view of demand for the A320
Family the Company has announced a gradual increase inproduction for the upcoming years, with a monthly production
rate of 75 A320 Family aircraft being targeted in 2026. Reaching
this production rate will depend in part on the success of ourindustrial adaptation and the performance of our suppliers.
For additional information, see “Business and operationsrelated risks – Industrial system adaptation” and “Businessand operations-related risks – Dependence on key suppliers
and subcontractors”. The Company proactively and constantly
monitors the manufacturing backlog (including the internaland external supply chain (including engines)), so as to ensure
readiness for further rate adaptations in accordance withdemand evolution, to minimise inventory levels, and to secure
aircraft storage capacity.

Risk Factors
2 Business and Operations-related Risks

In connection with the A320 Family programme, the Company
faces the following additional key specific challenges: keeping
A321XLR development on-track (including A321XLR certification
with primary airworthiness authorities), and adapting andupgrading our industrial system and capability to meet market
demands (including adapting to the evolving product mix within
the family, where the Company currently anticipates a significant
increase in A321 production). Market demand for A320 Family
aircraft and production and supply chain capabilities will continue
to evolve in the next few years, which the Company will continue
to closely monitor, with high-risk areas within the supply chain(including engine maturity and availability in service, and otherkey elements cited above in the first section of this risk factor)
being subject to particular scrutiny.
A350 programme. In view of market demand, the Company istargeting a monthly production rate of 10 A350 Family aircraftin 2026. Reaching this production rate will depend in part on
the success of our industrial adaptation and the performanceof our suppliers. For additional information, see “Business andoperations-related risks – Industrial system adaptation” and“Business and operations-related risks – Dependence on key
suppliers and subcontractors”. The Company proactively andconstantly monitors the manufacturing backlog (including theinternal and external supply chain (including engines)), so as toensure readiness for further rate adaptations in accordance withdemand evolution, to minimise inventory levels, and to secure
aircraft storage capacity.
In connection with the A350 programme, the Company faces thefollowing additional key specific challenges: matching production
rates to market demand while supporting the supply chain andmanaging lead-times from corresponding suppliers, reducing
recurring costs to improve competitiveness in view of thestrong competition in the widebody market, and delivering on
major programme developments (such as the A350 Freighter
development and A350-1000 Sunrise project). The Company willcontinue to closely monitor these challenges, with high-risk areasin the supply chain (including engines and other key elements)
and competitiveness topics being subject to particular focus.
A330 programme. In view of market demand, the Company istargeting a monthly production rate of four A330 Family aircraftin 2024. Reaching this production rate will depend in part on
the success of our industrial adaptation and the performanceof our suppliers. For additional information see “Business andoperations-related risks – Industrial system adaptation” and“Business and operations-related risks – Dependence on key
suppliers and subcontractors”. The Company proactively andconstantly monitors the manufacturing backlog (including theinternal and external supply chain (including engines)), so as toensure readiness for further rate adaptations in accordance withdemand evolution, to minimise inventory levels, and to secure
aircraft storage capacity.
In connection with the A330 programme, the key specificchallenges facing the Company are maintaining productcompetitiveness in the widebody market segment, andmonitoring (and where necessary supporting) the supply
chain. The ongoing industrial and product improvements of the
programme progressed well during 2023, however the Company
will continue to place particular focus on high-risk areas in the
supply chain (including engines and other key elements) andcompetitiveness topics.

A220 programme. In view of market demand, the Company istargeting a monthly production rate of 14 A220 Family aircraftin 2026. Reaching this production rate will depend in part on
the success of our industrial adaptation and the performanceof our suppliers. For additional information, see “Business andoperations-related risks – Industrial system adaptation” and“Business and operations-related risks – Dependence on key
suppliers and subcontractors”. The Company proactively andconstantly monitors the manufacturing backlog (including theinternal and external supply chain (including engines)), so as toensure readiness for further rate adaptations in accordance withdemand evolution, to minimise inventory levels, and to secure
aircraft storage capacity.
In connection with the A220 programme, the key specificchallenges the Company faces are to secure the planned cost
reduction trajectory (focusing particularly on recurring costs),
and to maintain a book-to-bill ratio above one, in order to fillcurrent open slots. The Company will continue to place particularfocus on high-risk areas in the supply chain, including engine
maturity and availability in service, as well as the challenging
and competitive environment in which it must attract, train andretain a skilled workforce.
A380 programme. In connection with the A380 programme, theCompany faces the following main challenges: secure ageing
fleet in-service support for the next decades and long-termcompetitiveness.
Medium helicopters range (H145, H160, H175). These
programmes face industrial and production ramp-up challenges.
NH90 programme. Risk of termination of Norway’s contract for
14 NH90 helicopters (13 of which have already been delivered)following receipt of notice of termination dated 9 June 2022.
Parties are engaged in a mediation process with a target toreach an amicable settlement. For further information, pleaserefer to the “Notes to the IFRS Consolidated Financial Statements– Note 12: Revenue and Gross Margin”.
Defence and Space programmes -generally. Defence
projects and many major satellite, space and other projects
are dependent on public spending and government financing,and due to their complexity, they are particularly subject todevelopment risk. For additional information, see “Business andoperations-related risks – Dependence on public spending andon certain markets”, “Business and operations-related risks –Availability of government and other sources of financing”
and “Business and operations-related risks – Technologicallyadvanced products and services”.
A400M programme. Whilst the Company is still in final
negotiation to sign the contract amendment that leads to a new
baseline for the programme, risks remain on the qualification oftechnical capabilities and associated costs, on aircraft operationalreliability, on cost reductions and on securing overall volume as
per the revised baseline. For further information, please referto the “Notes to the IFRS Consolidated Financial Statements– Note 12: Revenue and Gross Margin”.
Eurodrone. Due to the complex nature of this programme, its
design and development is particularly challenging, and many
hurdles remain to its successful progress.
Border security. In connection with a legacy border security
project, the Company faces the following main challenges:
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Risk Factors
3 Legal, Regulatory and Governance Risks

the complexity of the local infrastructures to be delivered andthe integration of commercial-off-the-shelf products (radars,
cameras and other sensors) interfaced into complex system
networks; assuring efficient project and staffing; managing therollout including subcontractors and customers. Negotiations
on change requests in this respect along with schedule realignments remain ongoing. The Company continues to engage

3.

with its customer to agree a way forward on this contract. The
outcome of these negotiations could result in significant further
financial impacts.
Launchers. In light of the delayed launch of Ariane 5’s successor,
Ariane 6, the Company faces a challenge related to Europe’s lackof independent access to space in the short-term.

Legal, Regulatory and Governance Risks

The Company faces various legal and regulatory risks, as
described in this section. In addition, the Company operates in
a complex geopolitical and economic environment in which itneeds to respond to the interests of its various stakeholders while
maintaining focus on its operational priorities. In certain contexts,
the interests of individual stakeholders or groups of stakeholders
may diverge from those of the Company. Reconciling suchsituations may demand the time and focus of the Company’s
management, potentially distracting management’s attention
from operational priorities and jeopardising the performanceof the Company, which could have a negative effect on the
Company’s business, results of operations and financial
condition.

Legal and Regulatory Proceedings
The Company is currently engaged in a number of active legal andregulatory proceedings. For further information, please refer to“Notes to the IFRS Consolidated Financial Statements – Note 38:
Litigation and Claims”.
The expiration in 2023 of the three-year deferral period under
the agreements reached in 2020 with the UK Serious Fraud
Office (“SFO”), France’s Parquet National Financier (“PNF”),
and the US Departments of State (“DoS”) and Justice (“DoJ”),
relating to their investigations into the Company – which resulted
in a fine totalling € 3.6 billion plus costs to the French, UK, andUS authorities – was followed by dismissal of the charges withprejudice by the respective authorities under each of theirdomestic laws. 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 UK SFO, France’s PNF, US
Departments of State and Justice and Related Commercial
Litigation” and “Securities Litigation”).
The Company is regularly involved in civil and commercial disputes
and litigation, and governmental or regulatory investigations,proceedings or inquiries, and expects to continue to spend timeand incur expenses in connection therewith (regardless of theirultimate outcome), which may divert the efforts and attention ofmanagement from normal business operations. Although the20

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Company is unable to predict the outcome of these types ofproceedings, it is possible that they will result in the impositionof damages, fines or other remedies, which could have a material
effect on the Company’s business, results of operations andfinancial condition. An unfavourable outcome to any of theseproceedings could also negatively impact the Company’s stock
price and reputation.
In addition, the Company is from time to time subject togovernment inquiries and investigations of its business andcompetitive environment due, among other things, to theheavily regulated nature of its industry. Such inquiries andinvestigations may cover matters relating to, among other topics,
anti-corruption and anti-bribery laws and regulations, export
control laws and regulations, data privacy laws, securities law,international trade law (including tariffs and import duties), andcompetition law. An adverse decision in any such matter could
have a material effect on the Company’s business, results ofoperations and financial condition. In addition to the risk of 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 ofoperations and financial condition. For further details, pleasealso refer to “– 1.2.14 Business Integrity”.

Risk Factors
3 Legal, Regulatory and Governance 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-compliancewith applicable laws and regulations by the Company, its
employees or any third party acting on its behalf could expose
it to liability or have a negative impact on its reputation andbusiness.

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 a 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 of operations and financial condition.

Export Controls Laws and Regulations
The ability to successfully obtain export licences is critical for theCompany. Airbus relies on government export authorisations
to deliver products and services to its customers worldwide,
and also to receive parts, raw materials and services from its
suppliers. Products the Company designs and manufactures formilitary use may be restricted or subject to licensing and export
control requirements, notably by the UK, France, Germany andSpain, where the Company carries out its principal activities
relating to military products and services, as well as by othercountries where suppliers are based, including but not limited to
the US. Commercial products also may be subject to dual-use
licensing requirements and restrictions, particularly in certain
markets, such as China. There can be no assurance that(i) the export controls to which the Company is subject will not
become more restrictive, (ii) new generations of the Company’s
products will not also be subject to similar or more stringent
controls or (iii) geopolitical factors or changing international
circumstances will not make it impossible to obtain export
licences for one or more clients or constrain the Company’s
ability to perform under previously signed contracts. Reduced
access to export markets may have a significant adverse effecton the Company’s business, results of operations and financial
condition.
Operating worldwide, the Company must comply withsanctions laws and regulations implemented by transnational,
national and regional authorities. Depending on geopoliticalconsiderations, including national security interests and foreign
policy, there is a risk that at any time new sanctions regimes may
be set up or the scope of existing ones may be widened, which
may have an immediate impact on the Company’s activities.
This has been well illustrated in the context of the war in Ukraine,where the imposition of international export control restrictions
targeting the aviation and space sectors resulted in Airbus
suspending deliveries, the provision of services and the supplyof spare parts to customers in Russia. The Company continues
to carefully monitor the evolution of the Ukraine-related export
control restrictions and broader sanctions and will adapt tothese developments as required. For additional information on
this matter, please refer to “Geopolitical, global economic andfinancial market risks – The war in Ukraine and armed conflicts”.
The Company seeks to comply with all relevant laws andregulations. However, even unintentional violations or failure
to comply could result in suspension of the Company’s
export privileges, or preclude the Company from biddingon certain government contracts (even in the absence of aformal suspension or debarment). Furthermore, the Company’s
ability to market new products and enter new markets may
be dependent on obtaining government certifications andapprovals in a timely manner, highlighting the importance ofrobust compliance and a strong, trust-based relationship with
its regulatory authorities.

Dependence on Joint Ventures and Minority Holdings
The Company generates a proportion of its results throughvarious consortia, joint ventures, partnerships and other equity
holdings. The Company recognises its share in the results of
its equity holdings in the proportion of the stake held. In 2023,
the Company’s total share of result from these arrangements
amounted to € 267 million (compared to € 134 million in 2022,€ 40 million in 2021, € 39 million in 2020 and € 299 million in2019). 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 joint ventures, consortia, partnerships or equity
participations and other cooperative ventures with other market
players is an important element of the Company’s strategy, andthe proportion of sales generated from such arrangements could
rise in future years. This strategy may from time-to-time lead tochanges in the organisational structure or realignment in thecontrol of the Company’s existing consortia, joint ventures,
partnerships and other equity holdings.

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Risk Factors
3 Legal, Regulatory and Governance Risks

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 ofhigh-profile products of large individual value, particularly civil
and military aircraft and space equipment. The Company issubject to the risk of product liability and warranty claims in
the event that any of its products fails to perform as designed.
While the Company believes that its insurance programmes areadequate to protect it from such liabilities, no assurance can begiven that claims will not arise in the future or that such insurance
coverage will be adequate in every instance or circumstance.
Some types of claimed damages, such as punitive, exemplaryor moral damages may not be insured or insurable.
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 tochange scope of coverage, premiums and deductible amounts.
No assurance 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 high profile within its industry.
The Company cannot predict at this time the potential impact ofany product liability or warranty claims, as the impact will dependon 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 the core of the Company’s strategy since its
creation. The Company’s innovations often provide distinct
competitive advantages, with many becoming standard in theaircraft industry. In addition, the Company designs, develops andproduces a number of high-profile products of large individual
value, particularly civil and military 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, services and operations.
In a typical year, the Company files around 800 new priorityestablishing patent applications and files globally around
1,600 national patent applications in global markets where
it seeks to protect its technology assets. The Company hasreceived patents for around 10,500 individual technologies
with nearly 4,000 patents pending. This level of protection isbenchmarked against peer and competitor companies and isconsidered sufficient to protect core, proprietary differentiating
technology which has been developed by the Company. Despite
its efforts to protect its IP rights, there is a risk that any of theCompany’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 tothe same extent as the laws in Europe and the US. Therefore,
in certain jurisdictions the Company may be unable to protect
its proprietary technology adequately against unauthorised

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third-party copying or use, which could adversely affect its
competitive position. The Company may also face lack of
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.
In the event the Company is unable to adequately procure andprotect critical IP, it could negatively impact the Company’s
implementation of its business strategy, and could negatively
affect the Company’s future prospects, financial condition andresults of operations.
The Company has been accused of infringement on occasion
and may 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 in this area, whether the Company ultimately wins
or loses, could be time-consuming and costly, could harm theCompany’s reputation or could require it to enter into licensing
arrangements (and the Company might not be able to enter intosuch licensing arrangements on acceptable terms). If a claim of
infringement were successful against it, an injunction might beordered against the Company, causing further losses. There are
currently no significant claims of IP infringement pending against
the Company. Minor claims and pre-dispute matters commonly
settle outside of formal legal proceedings or during initial stagesof such proceedings.

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

4.

Environment, Human Rights, Health & Safety Risks

Climate-related Risks
Climate change may have a major impact on both the Company’s
industrial operations and its upstream and downstream value chain,including directly on aircraft operations and on the wider air transportecosystem, along with a strong influence on regulations and on
stakeholders expectations. Accordingly, climate-related risks could
materially affect the Company’s business and competitiveness, itscustomers and other elements of the aviation industry.
The Company uses the recommendations of the Task Force on
Climate-related Financial Disclosures (“TCFD”) to categorise,manage and report on its climate-related risks. Accordingly, theCompany has strengthened its ERM risk identification process forclimate-related risks by incorporating climate scenario analysis,
and uses the following TCFD risks categories for managing andreporting:Transition risks

Physical risks

Technology
MarketPolicy and legal
Reputation

Acute
Chronic

The scope of the climate-risk identification exercise comprises
the entire Company – including its Divisions – and the
upstream and downstream value chain. Following TCFD
recommendations and in pursuit of continuous improvement,
during 2023 the Company has updated its climate change
scenario analysis. It uses a range of different temperature
scenarios (1.5°C, well-below 2°C and >3°C) to represent
different climate realities based upon the global scenariosof the Intergovernmental Panel on Climate Change (“IPCC” –Assessment Report 6 (“AR6”)) and the International Energy
Agency (“IEA”).
The scenario analysis is used to identify financial andoperational risks and opportunities related to climate changethat may begin to impact the Company in the short-term (“ST”,
around 2025), medium-term (“MT”, around 2035) and longterm (“LT”, around 2050) so that the Company can work toincrease the resilience of its assets and operations in order tomitigate and adapt to climate change.

The climate scenarios used in the updated analysis in 2023 are briefly described below:
Aggressive mitigation – Limiting warming to 1.5°C
Based on IPCC Assessment Report 6 (AR6) Scenario Shared Socioeconomic Pathway (SSP)1-1.9 / Net Zero Emissions by
2050 Scenario (NZE) by the International Energy Agency (IEA) which reflects the ambition of the Paris Agreement to the United
Nations Framework Convention on Climate Change (Paris Agreement)This is a very ambitious scenario that limits global warming to 1.5°C by the end of the century. In this scenario the global
energy sector achieves net-zero CO2 emissions by 2050 and the world reaches the objective of the Paris Agreement. Developed
countries (e.g., including those within the European Union) accelerate in decarbonisation. Societies adopt practices to enable
the required levels of reduction of emissions, including increasing investment in and development of technologies that could
reduce emissions of the transport sector in developed countries and limit emissions growth in developing countries. Policies to
1.5°C
decarbonise are introduced immediately (2020s), with these policies diverging across sectors and regions and differing in boththe timing of their deployment and their reach.
Mitigation strategies implemented worldwide and across sectors include: (i) transitioning from fossil-based energy to very low or
zero-carbon sources including hydrogen and high density biofuels for aviation; (ii) carbon capture utilisation and storage is used inremaining fossil-fuels facilities; (iii) improvements in energy efficiency are implemented (however additional mitigation technologies
for aviation are required); (iv) both nature- and technology-based Carbon Dioxide Removals (“CDR”) are deployed to the levels
required to neutralise global residual GHG emissions; and (iv) countries implement measures towards restricting demand fortransport services while supporting the shift to more energy efficient and low carbon intensive products and transport modes.
Severe weather events are more frequent, but the world has avoided the worst consequences of climate change.
Strong mitigation – Warming limited to well-below (“WB”) 2°C
Based on IPCC Scenario AR6 SSP1-2.6 / Sustainable Development Scenario (SDS) Scenario by the International Energy
Agency – Paris Agreement
WB
2°C This scenario assumes a more gradual approach in the introduction of climate mitigation actions, limiting global warming towell-below 2°C by the end of the century. Net-zero emissions are achieved around or after 2070. In this scenario the same socioeconomic trends presented in the scenario limiting 1.5°C are maintained but economic and social development progress is slower
and the environment experiences further degradation.
Disorderly mitigation – Warming exceeding 3°C – Based on IPCC Scenario AR6 SSP5-8.5
This is the highest emissions scenario and worst-case scenario in temperature increase. This scenario assumes current levelsof CO2 emissions and greenhouse gases will almost double by 2050. The world economy grows rapidly, but this growth is>3°C driven by fossil fuel exploitation and very high-intensive lifestyles. This scenario is characterised by high economic challenges
and high social negative impacts and challenges for specific societies to mitigation as well as low socio-economic challenges
to adaptation. The scenario particularly explores the limits to adaptation and the climate physical risks that may impact theCompany’s operations and its value chain. On the mitigation side, in this scenario the pursuit of CO2 removal and other climate
engineering practices would be more likely given the high challenges to mitigation.

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

The results of the Company’s climate scenario analysis has led
to the identification of the following risks:

Transition – Policy and legal: Climate-related regulations
and restrictions – divergence in regulatory framework

Climate-related risks:Aviation and aerospace are complex industries, with longproduct development cycles and where change takes a longtime to be implemented. A rapid evolution of climate related
policies (such as the EU zero-pollution communications) andregulatory 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. In
particular for aviation, as it is a global industry, policies andregulations implemented at national or regional rather thaninternational level, or these evolving at a different speed
depending on the region, could result in a negative impact
on the competitive conditions for manufacturers and aircraft
operators. This could result in a loss of competitiveness for theCompany and reduced demand for its products.

Transition – Technology: Emergence of disruptive
technologies from competition and low availability of
renewable and low-carbon energy
Delivering on existing commitments and potential future
requirements to mitigate climate impacts will require significant
investments in new technologies for the commercial aircraft
sector, making the delivery of low-emission technologies asignificant marker of future competitiveness. A competitor or
new market participant could have access to technologicaldevelopments unavailable to the Company that offer significantly
lower emissions at a faster pace than the Company and its
partners, resulting in a loss of market share and competitivenesswith resulting reduced revenue. The imperative for the Company
to develop new technologies faster than other actors in themarket will require substantial research and technology (R&T)
and research and development investments. Coupled with
the need to sustain high investments to spur technologicalinnovation, the Company has identified risks linked to theavailability of renewable and low-carbon energy. First, thereis the risk of low volumes in absolute terms, due to insufficientinvestments in renewable or low-carbon energy (including
through the sustainable transformation of available biomass).
Second, the risk that even if total volumes are approaching
sufficiency in absolute terms, the aviation sector is unable to,access sufficient volumes, leading to a risk of a slower than
expected substitution of fossil fuel energy and low uptake of the
new solutions and products to be developed by the Company,
and resulting in lower or longer returns on invested R&D.
Transition – Market: Impact of market measures andtheir development on demand for the Company’s products
Accommodating new types of aircraft that respond to theaviation sector’s decarbonisation objectives requires anecosystem that is ready. For instance, the development of
future products based on the ZEROe concepts will requiresignificant investments in both products and supporting
infrastructure, which could directly impact the operating costsof such a product. Consequently, the absence of measures tostimulate robust hydrogen, synthetic fuels and biofuels supply
infrastructure and adapted procedures to ensure efficiency
and safety of operations could mean that the ecosystem will
be unable to accommodate the Company’s future products,
notably resulting in significant development costs incurred anda risk of compromising the investments made if customers areunable or unwilling to purchase products that cannot be widely
operated within the available infrastructure and procedures.
Moreover, the competitiveness of this next generation productwill also strongly depend, among other factors, on the evolutionof the price of CO 2 emissions. A high price on CO 2 May impact
the demand for aircraft relative to competitors’ portfolios andcould result in the loss of market share for the Company
relative to its competitors. The Company’s business, results ofoperations and financial condition may be materially affected if
the Company does not, at each step of development of its future
products, account for market expectations while ensuring its
products stay affordable for customers and competitive withrespect to competitors’ portfolios.

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Transition – Reputation: Change in behaviours, perceptions
and societal expectations
Reputational risks could be divided into several categories.
Firstly, there is a risk that negative perceptions about theCompany’s environmental performance could be used as key
decision-making criteria for consumers, investors, or evennew talents. Secondly, there is a risk that the Company’s
reputation could be damaged by growing societal concerns
about the climate change impact of aviation or by the lack oftransparency on progress made to address climate-related
issues. As an example, the Company was the first manufacturer
to disclose its ambition to bring a hydrogen-powered aircraft
to the market. If the ambition is perceived as unattainable or if
the Company is not able to deliver on its ambition, this could
result in reputational damage leading to less 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 – Acute: Extreme weather events may impact
the Company’s products and its operations
The foreseen consequences of climate change include more
frequent extreme weather events, such as drought, dust storms,
extreme temperatures, extreme winds, flood, hail storms,
landslides, hurricanes, tornadoes, cyclones and wildfires.
These could negatively impact the Company’s products andits operations (including but not limited to route delays and safe
aircraft operations), land assets and infrastructure as well as
employees’ safety (and people’s safety generally).
The above consequences and impacts may result in production
or other operational disruptions leading to lost revenues,
reduced profits, and losses. This could result in the need for
additional modifications to the Company’s products in order
to meet more stringent safety needs, as well as requiringchanges to industrial operations and procurement strategy,
leading to increased operational and production costs andthe consequential costs of adapting the Company’s insurance
coverage.

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

Physical – Chronic: Consequences of long-term changing
weather patterns that may cause sea level rise, water
scarcity, chronic heat waves, chronic cold, increased
industrial asset, infrastructure and operations costs, andreduced labour productivity and employee health
The foreseen consequences of climate change include longterm shifts in climate patterns (e.g., change in precipitation
patterns, ice/permafrost melt, ocean acidification, sustained
higher temperatures, sea level rise, water stress or chronicheat waves). Such changes may cause an accelerated
degradation of the Company’s industrial infrastructure andassets (buildings, tools, hardware), may reduce the availabilityof operational resources and may interrupt logistics flows,
therefore impacting the Company’s manufacturing activities.
In addition, the change in environmental conditions could

Company’s climate-related risks mapping
RISKS

also negatively impact the performance of products inoperation and negatively impact the health and safety of
the Company’s employees. This may result in the need for
additional modifications to the Company’s products, as wellas to industrial operations and procurement strategy, leading
to increased costs and the adaptation of the Company’s
insurance coverage.
Based on a qualitative analysis, the Company has estimatedthe probability of risk or opportunity materialisation. It has also
performed a preliminary internal assessment, using data fromthe Company’s ERM system, as to which climate-related risks
may involve the most significant financial impacts in the future.
The results (as of the publication date of this document) aredisplayed in the following table.

Climate scenario / time horizon(s)where risk likelihood is considered medium or high,based on Company’s qualitative analysis
1.5°C

WB 2°C>3°C

Most importantfinancial
impacts before
mitigation

Transition – Technology✔

Transition – Market✔

Transition – Policy and legal
Transition – Reputation
Physical – Acute✔

Physical – Chronic✔

: ST –: MT –: LT

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

Regulated Chemicals
Ongoing evolution of the chemicals’ regulatory framework maylead to short and long-term potential bans and restrictions, andto the extent alternative solutions are unavailable, could result inbusiness disruption across the Company’s value chain.
Laws and regulations designed to protect human health andthe environment are in force across the jurisdictions in which
the Company operates, and are continually evolving to address
topics (such as permitted composition, traceability, disposal
and the minimisation or elimination of various substances).
As the Company pursues new technologies and innovation,certain regulated chemicals may become more important to theCompany in the future, thereby increasing the Company’s riskof disruption in this area. Currently, the Company is subject tothe risk of chemicals obsolescence (due to changes in law or

regulation), which could result in disruptions to the supply chainor the Company’s operations if suitable replacements are notavailable in a timely manner.
In order to reduce the use of “targeted” (i.e. more regulated)
substances and mitigate the risk of disruption in its operations andsupply chain, the Company’s policy is to pursue the developmentof alternative technologies that use substances of less concern,and substitution of these when suitable alternatives meeting
stringent certification and airworthiness criteria are available for
deployment. Complementary to this effort towards substitution,
digital solutions are being developed to improve traceability of
regulated substances in the Company’s products, from the early
design steps down to the end of life.

Regulatory Risks
The Company’s costs associated with environmental, humanrights, health and safety challenges may increase due to bothincreased costs of compliance with regulations relating to 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 operating costs
and capital expenditures to comply with increasingly complex
laws and regulations in this area, particularly those covering theprotection of the natural environment, as well as those relating
to occupational health and safety and human rights. Moreover,new laws and regulations, the imposition of tougher licensing
requirements or stricter enforcement of or new interpretations ofexisting laws and regulations may cause the Company to incur
increased operating costs and capital expenditures in the future,
which could have a negative effect on the Company’s business,
results of operations and financial condition.
Health and safety expenditures include investments in theidentification and the prevention, elimination or control of physicaland psychological risks to people arising from work, including
chemical, mechanical and physical agents, in light of applicableregulations. Risks that could arise from work activities include
the possibility of 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 healthand safety expenditure being required.
Environmental protection expenditures include costs to prevent,control, eliminate or reduce emissions to the environment,
waste management, obligations relating to the content of theCompany’s products, and reporting and warning obligations.
Current trends indicate that regulatory pressure to reduce theenvironmental footprint of industry is steadily growing (with anemphasis on circular economy and resources efficiency, energy
transition and climate change engagement, air and water quality
improvement), and the Company’s ongoing efforts to comply

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with its regulatory obligations will result in additional costs to
the Company.
If the Company fails to comply with environmental, humanrights, health and safety laws and regulations (even if caused
by factors beyond its control), such failure may result in civil or
criminal penalties and fines. Regulatory authorities may require
the Company to conduct investigations and undertake remedialactivities, 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 andother third parties may file claims for ill-health, personal injury,
or damage to property or the environment (including natural
resources). Further, liability under some environmental, humanrights, health and safety laws can be imposed retrospectively,on a joint and several basis (i.e. each entity fully liable for theentire claim), and in relation to contaminated sites, without any
finding of non-compliance or fault. These potential liabilities may
not always be covered by insurance, or may be only partiallycovered. The obligation to compensate for such damages could
have a negative effect on the Company’s business, results ofoperations 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, andlaws relating to chemical substances and preparations) inthe jurisdictions in which they are operated. Although theCompany seeks to ensure that its products meet the highest
quality standards, increasingly stringent and complex laws andregulations, new scientific 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 use of chemical substances)
may force the Company to adapt, redesign, redevelop, recertify
and/or eliminate its products from the market, thereby incurring
significant additional costs. See for instance “Environment,
human rights, health & safety risks – Regulated chemicals”.

Risk Factors

Authorities may seize defective products, and the Company
may incur administrative, civil or criminal liability (also see“Legal, regulatory and governance risks – Product liability andwarranty claims”). Any issues in respect of health, safety andenvironmental laws may also have a significant adverse effect on
the reputation of the Company and lead to a decline in demandfor its products and services.
Regardless of compliance with applicable laws and regulations,the Company’s reputation and demand for its products
and services may be affected by public perception of theenvironmental and societal 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 andindustrial operations on local communities, on the environmentand on air and water quality. For more details, see “Environment,
human rights, health & safety risks – Climate-related risks”.
The Company cannot predict at this time the potential impact
on it that could result from environmental, human rights, healthand safety matters, and it may be adversely affected by them inthe manner described above or in manners that are not currently
foreseen. For further information on sustainability-related risks,see “– 1.2 Non-Financial Information”.

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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

30
30
37
47
53
61
61
61

1.2
Non-Financial Information
1.2.1 The Company’s approach to sustainability
1.2.2 Climate Change
1.2.3 Pollution
1.2.4 Materials and circularity
1.2.5 Water
1.2.6 Biodiversity
1.2.7 Aviation and product safety
1.2.8 Cyber security
1.2.9 Health and safety
1.2.10 Human rights
1.2.11 Inclusion and Diversity
1.2.12 Social Dialogue
1.2.13 People
1.2.14 Business Integrity
1.2.15 Responsible Supply Chain
1.2.16 Community Impact
1.2.17 ESG Data Board
1.2.18 TCFD Correspondence Table
1.2.19 EU Taxonomy
1.2.20 GRI Index
1.2.21 SASB Correspondence Table

64
64
72
94
96
98
100
101
103
105
110
115
117
119
123
126
132
135
144
145
152
156

1.3

Other corporate activities

157

1.4

Recent Developments

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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
designs and manufactures modern and fuel-efficient airliners
and associated services. The Company is also a European
leader in space systems, defence and security. In helicopters,
the Company provides efficient civil and military rotorcraft
solutions and services worldwide.

Strategy
In the current challenging operating environment, the Airbus
purpose “We pioneer sustainable aerospace for a safe andunited world” has never been more relevant. The Airbus strategy
is based on four near-term areas of focus drawn from the major
trends that influence our operating environment – geopolitics,
sovereignty, resilience and sustainability:
1. grow Airbus as an aerospace and defence leader;
2. consolidate European strengths and deepen global reach;
3. increase capacity to invest for the future; and4. lead the transformation of the aerospace industry.

1. Grow Airbus as an aerospaceand defence leader
Leadership today is not a guarantee of leadership tomorrow. The
Company believes that its ability to win business in the future will
be earned 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 tocapitalising on its current commercial aircraft portfolio throughincremental improvements. Airbus estimates that its current
products have substantial upside leading to exceptional
longevity. This has been demonstrated by the New Engine
Option (NEO) versions of A320 and A330 and stretch versions,such as the A321XLR, but also in incremental improvements
on every product. The A330neo and the A350 both deliver
high levels of fuel and therewith CO 2 efficiency (25% fuel30

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consumption saving compared to previous generation aircraft),accelerated pilot onboarding (all wide-body aircraft benefit
from a common type rating making pilot training shorter,
smoother and lower cost), and comfort (through the exclusive
airspace cabin), setting a modern benchmark in passenger
comfort and wellbeing.
Incremental improvements will continue in the coming years
on all Airbus aircraft, with a focus on safety, fuel efficiency,
environmental impact, operational improvements, recurringcosts, digital connectivity, and increased automation andcompatibility with Sustainable Aviation Fuels (SAF). Airbus
aircraft are also well suited to serve freighter and VIP markets.
The number of orders received for the A350 Freighter version(A350F) (50 firm orders as of 31 December 2023) demonstrates
that it is setting a new standard for air freight efficiency andcompeting well with Boeing’s previous market dominance inthis segment.
In 2023, Airbus Helicopters won orders across its different
programmes, driven by its prioritisation of customer loyalty,
innovation, serving the defence and security market, andsustainability, with concrete plans to significantly cut the fuelburn of its future products and grow the use of Sustainable
Aviation Fuels.
Notably, Airbus Helicopters received Federal Aviation
Administration (FAA) certification for the H160 and Civil Aviation
Administration of China (CAAC) certification for the H175. The
German Navy NH90 Sea Tiger performed its maiden flight.
Airbus Helicopters also broadened its range of MRO capabilities
in the area of dynamic systems with the acquisition in early 2023
of ZF Luftfahrttechnik. The company based in Kassel-Calden, in
Germany, is now operated under the name Airbus Helicopters
Technik GmbH.
Airbus Helicopters continues to increase its footprint inUnmanned Aerial Systems (UAS) as part of its efforts tostrengthen its portfolio of tactical unmanned solutions. VSR700,
an unmanned Intelligence, Surveillance and Reconnaissance(ISR) vehicle helicopter designed to operate from frigates
and to patrol beyond line of sight (BLOS), was successfully
tested for the first time in an operational configuration from aship at sea. Also in 2023, Airbus Helicopters started the EU
Next Generation Rotorcraft Technologies Project (ENGRT) as
part of the European Defence Fund (EDF). This programmeaims to prepare for the replacement of more than 900 NATOhelicopters in the utility and naval segments between 2035
and 2040.

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

In 2023, Airbus Defence and Space repositioned aroundthree dimensions: Air Power, Space Power and Information
Superiority. In Air Power, Airbus continues to extend thecompetitiveness of its aircraft and services portfolio and saw
additional orders for the A330 Multi-Role Tanker Transport(MRTT) from the Government of Canada and the NATO
Support and Procurement Agency (NSPA). Working with
the Company’s wholly-owned subsidiary, Airbus UpNext,
Airbus Defence and Space achieved in-flight autonomous
guidance and control of a drone using an A310 MRTT, a firststep towards Autonomous Formation Flight and Autonomous
Air-to-Air refuelling (A4R).
Furthermore, the Spanish Ministry of Defence ordered 16 Airbus
C295 aircraft in Maritime Patrol Aircraft (MPA) configurationand Maritime Surveillance Aircraft (MSA) configurations andthe first C295 for India successfully completed its maiden
flight, marking a significant milestone towards the deliveriesof 56 C295 aircraft ordered in September 2021. Airbus andLeonardo signed a Memorandum of Understanding (MoU)
to jointly promote integrated training systems and study the
future solutions to tackle Air Dominance challenges.
In unmanned systems, Airbus Defence and Space signed
a contract with the Spanish Ministry of Defence for thedevelopment and acquisition of SIRTAP, a High Performance
Tactical UAS that will reinforce the tactical capabilities of the
Spanish Army and the Air and Space Force. The developmentof SIRTAP will bring the national industry key experience andcompetences in the field of Remote Carriers for FCAS.

1.2 Pioneering for the next generation
In preparing the next generation of aircraft, the need to meetglobal sustainability targets will be the catalyst that allows
aviation to continue to meet its larger purpose of uniting theworld. The quest for lower carbon air travel will fundamentallychange aerospace. Not since the introduction of the jet engine
has the industry faced such a challenge, in particular aroundnew energy sources. New certification challenges, newmaterials, 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 sustainableaviation for the benefit of the environment and society atlarge, delivering products and services that are scalable andeconomically attractive while delivering a step change to themarket.
Airbus is well underway in preparing the enablers for thisevolution and has invested in the key research and technology
building blocks that will underpin their development. In 2023,
Airbus UpNext launched a new demonstrator programme
named HyPower to explore, through the use of hydrogen fuelcells on the ground and in flight, a new architecture for thegeneration of energy to be used for non-propulsion purposesin the aircraft. Another key milestone was Airbus UpNext’s
successful maiden flight of Blue Condor, its hydrogenpowered experimental aircraft. The flight was the Company’s
first to use hydrogen as the sole fuel source, and it started a
test campaign that is scheduled to conclude with a contrailmeasuring mission in 2024. Airbus is committed to pioneering
radical technological breakthroughs that lead further along
the path toward a climate neutral aviation.

1

Airbus is also leading a European consortium that seeks toincrease the air mobility capabilities of the armed forces of
EU Member States with the new Future Mid-size Tactical
Cargo (FMTC) transport aircraft, which would complement themissions of the A400M.

1.3 Build advantages through a broad spanof products and services within aerospaceand defence
The resilience provided by a broad portfolio of products andservices is essential for Airbus today and will continue to bein the future. Most aerospace companies maintain defence
and space elements within their portfolio in an effort to gain
synergies and increase stability. This is also true for Airbus,
with commercial aircraft, helicopters, defence, space, andsecurity activities all part of the portfolio. Governmental, militaryand commercial business, products and services, fixed wing
and rotary platforms, satellites and launchers, both self- andcustomer-funded, are all elements which balance market
variations, offer synergies, and help to smooth investment
cycles. Additionally, as digital design, manufacturing andservices require similar capabilities across aerospacesegments, owning a broad portfolio delivers flexibility inresource allocation and the leveraging of investments in corecapabilities. The COVID-19 crisis demonstrated the importanceof having strong and complementary helicopter, defence, spaceand security businesses alongside commercial aviation within
the portfolio, enhancing the resilience of the overall group.

1.4 Expand as a leader towards new territories
In commercial aviation, the demand for more fuel-efficientsolutions will play out globally and will continue to drive
demand for our products and services. In helicopters,
Urban Air Mobility (“UAM”) is at the forefront of a revolution
towards more sustainable electric flight that will allow forcomplementary urban transport solutions that will alleviate
urban congestion by utilising airspace. By 2030, 60% of theworld’s population will be urban. This significant population
growth is expected to create a real need for innovative mobility
options as ground infrastructure becomes increasinglycongested. Capturing growth in these new vertical take-off
and landing (“VTOL”) and UAM markets, for both platforms
and services, is a driver for the Company’s strategy. The
Company launched its CityAirbus NextGen eVTOL in 2021
for this purpose. In the defence sector, shaping air and space
power by integrating aircraft, unmanned systems and spaceassets with a cloud structure for command and control will,
if successful, revolutionise the capabilities of Airbus’ defence
customers, with a view to securing the Company’s long-termpresence in defence markets.

2. Consolidate European strengths
and deepen global reach
The ambition of European industrialists to work together towards
a common goal of creating one leading player in commercial
aerospace has been decisive to the success of the Company.
The Company has become a global company, but has stayedtrue to its roots, and in view of aerospace and defence being
regarded as a sovereign industry, Airbus continues to act asa trusted partner to European governments.

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

2.1 Global reach through local actions
Over the past 50 years, Airbus has grown from beinga cooperation of national aerospace companies, in four
European countries, to a global leader in commercial
aerospace with a strong foothold in helicopters, defence,
space and security. No aerospace and defence company ismore culturally diverse. More than 140 nationalities make up
the Company’s workforce and over 20 languages are spoken,
reflecting the diversity of its employees and customer base.
This is a key strength of the Company 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 in and grown aircraft
and helicopter final assembly lines in Asia, across Europe andin the Americas.
In preparation for the single aisle production ramp-up to 75
aircraft per month (Rate 75), the Commercial Aircraft businesspursued the transformation of its industrial system across theworld. The final assembly lines in Tianjin, China and Toulouse
have been adapted to make them A321 capable. Airbus madesignificant progress in China in 2023 with the delivery of thefirst A321neo aircraft assembled at its Final Assembly Line Asia
(FAL Tianjin) and the signature with the Tianjin Free Trade Zone
Investment Company Ltd., and Aviation Industry Corporationof China Ltd., of an agreement to expand A320 Family final
assembly capacity with a second line at its Tianjin site.
The inauguration, in July 2023, of a new A321-capable final
assembly line in Toulouse represents another milestone in theongoing modernisation of our global industrial system. This
FAL will contribute to the ongoing production rate ramp-up to
75 A320 Family aircraft per month in 2026, while meeting theincreased demand for A321s, currently representing around
60 percent of the total A320 Family backlog. Meanwhile, inAugust 2023, a new, state-of-the-art A321XLR installation
hangar opened in Hamburg. Furthermore, a second assemblyline in Mobile, Alabama (USA) is being established to further
increase local capacity. To enable this surge of single aisle
rates, major aircraft components assembly lines have been
either upgraded (Broughton) or opened (Saint-Nazaire).
In parallel, Airbus and Voyager Space (“Voyager”) announced
an agreement paving the way for a transatlantic joint venture todevelop, build, and operate Starlab, a commercial space station
planned to succeed the International Space Station. The USled joint venture will bring together world-class leaders in thespace domain, while further uniting American and European
interests in space exploration.
Airbus Helicopters and Korea Aerospace Industries (“KAI”)
signed an agreement to initiate the serial production phaseof the Light Armed Helicopters (“LAH”). Deliveries will begin
at the end of 2024, with follow-on orders to continue into thenext decade.

2.2 Aerospace and defence is a sovereignindustry
As the war in Ukraine demonstrated, strong defence capabilities
provide nations with physical security and the means toprotect their citizens, values and vital infrastructure. Thissecurity is in turn a prerequisite of peace, the rule of law,political stability, democracy, environmental sustainability,
human rights, economic development and prosperity andscientific progress.

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All nations need a certain level of strategic autonomy, andAirbus products and services help nations protect freedom,
peace and security. Strongly rooted in all key national markets in
Europe, the Company will continue to deliver on national needs
while acting as a catalyst for broader European sovereignty
requirements. In particular, Airbus is a long-term, trusted partner
to France, Germany, the UK and Spain. Our relationships withthese nations have been nurtured over several decades ofmanufacturing, supplying and maintaining critical defence
systems for their armed forces. Our manufacturing system isa model of European integration, and our growth as a Company
owes much to our ability to operate relatively freely acrossborders within Europe.
Our products and services contribute to safety and security
in many different ways. They range from the aircraft thatallow nations to safeguard their airspace (Eurofighter, militaryhelicopters, A400M) to intelligence capabilities (observation
satellites, maritime surveillance), terrestrial space services,
cyber security and secure satellite communications solutions
for government defence departments and organisations
devoted to public safety and emergency responders. All ofthese elements help to make the world a safer place.

3. Increase capacity to invest for the futureMarket recovery after the COVID-19 pandemic varied
significantly across different world regions, driven by the paceof vaccination campaigns and the easing of travel restrictions.
Domestic markets were first to recover, followed by regional
and intercontinental markets, with the exception of China
where international traffic has still not fully recovered. Market
recovery unleashed waves of pent-up demand for air travel
which almost all actors in the industry had major difficulties
in accommodating, limited by their human resources andsupply chains. The pressure on supply was compounded by
the Russian invasion of Ukraine and its impacts on energy,
critical raw materials and economic growth.
The demand crisis is recovering fast but supply, production
and ramp-up challenges remain. To mitigate supply risks, butalso to support a leading European supplier of critical partsand materials, Airbus together with Safran and Tikehau Capitalacquired Aubert & Duval from Eramet in 2023 through a holding
company. Aubert & Duval has cutting-edge knowledge in
specialty steels and superalloys, as well as its more recently
acquired expertise in titanium, all of which are crucial to theaerospace, transportation, energy, defence and medical
markets.
In parallel, the Company has continued to work on its internal
efficiency as illustrated by the rapid expansion of the Airbus
Global Business Services (“GBS”) unit in Portugal that supports
various operations of the Group including finance, procurement,
human resources and information technology. Two years after
its creation, Airbus GBS employs more than 500 people.
Building up capability and capacity at GBS is a core part ofAirbus strategy.

3.1 Right combination of growth, profitability
and resilience
The Company continues to face a volatile, uncertain, complex
and ambiguous market environment. At the same time the climate
imperative for commercial aviation is increasingly recognised
together with the collective drive towards decarbonisation for1. Information on the Company’s Activities
1.1 Presentation of the Company

which Airbus is a leader. 2023 provided another significant
milestone. The first commercial flight in May of the COMAC
C919, the Chinese competitor to the Airbus A320 and Boeing
737, means the Single Aisle market will no longer operate asa duopoly. Hence the right combination of growth, profitability
and resilience will be vital to Airbus’ long-term competitiveness.
Aerospace remains a major backbone of the global economy
and a vital service to people and businesses. Airbus iscommitted to playing its part in contributing to the aerospacesector continuing to play its vital role in the global economy bybuilding resilience. This will be achieved by having sufficient
funds available to withstand shocks, close cooperation withstakeholders to ensure the overall travel value chain survives,
seamless coordination along the supply chain to detect issues
rapidly, and reinforcement of the Company’s balance sheet tocontinue investing in future competitiveness.
To compete successfully, the Company continues to invest in
the evolution of its product portfolio and its decarbonisation
roadmap, the development and integration of the latest aircraft
technologies, the introduction of new manufacturing technologies
including greater use of automation, the implementation of
Digital Design Manufacturing and Services, the restructuringof its industrial set-up including the creation of Airbus Atlantic
and Airbus Aerostructures, as well as the optimisation of its
supply chain relationships.

3.2 Protecting investments important
for the longer-term
The Company believes that the way to remain attractive
to investors, employees and society at large is to be at theforefront of 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 andprofitability to continuously drive the industry forward. Having
successfully increased 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.
The Company’s range of products is well placed to prosper inthe post-pandemic world and it is the strong demand for thecurrent range of products and services that pave the way toa lower-carbon future. The 2030s will be a defining period for
Airbus with its hydrogen-powered airliner and next generation
Single Aisle aircraft both expected to begin operations. It’s the
single-aisle and widebody orders won today that will support
the Company through a period of intensive innovation andinvestment. Every order counts, and 2023 was a record andmemorable year.
As the Company delivers on its strategy as a leader with Europeanroots and global reach, the Company is uniquely positioned tocontinue pioneering the industry, deepen customer relationships
and expand its role in defence, space and helicopters, all while
delivering shareholder value in line with market expectations.

4. Lead the transformation of the aerospaceindustry
Aviation’s licence to grow and operate in the future is linked tosustainability. Improving the environmental impact of our dayto-day lives is at the top of agendas throughout the world. Whilesome argue for limiting mobility, the Company is convincedthat sustainable air travel is not only possible but achievablein our lifetime.

1

Making the world a smaller and more transparent place to live
makes it safer and more rewarding. The ability to discover,learn, share and remain safe are basic human needs anda guiding star for the Company. Air travel brings prosperity
through the connections it makes. One in ten jobs aroundthe 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 the aerospace industry that society demands. Hence, thepurpose of the Company is to pioneer sustainable aerospace
for a safe and united world.
The Company does not, however, operate in a vacuum. Sharedvalue and good governance are integral elements in managing
the Company’s vision for a sustainable future. Airbus’ businessis deeply connected with environmental, social, and governance(“ESG”) objectives through its own efforts to advance onthese topics in line with the various international standards,
frameworks and initiatives.
Defence is a crucial component of security and security is theprecondition for a responsible and sustainable world. In thisendeavour, the Company is committed to sustainable andresponsible business practices, and maintaining the strictest
legal and highest ethical standards in full compliance with
European and international laws and European and all applicablenational export control regulations. The Company’s defence
portfolio provides countries with the means to protect theircitizens, democratic values and vital infrastructure, which is ofincalculable societal value.
The capabilities and technologies that the Company develops
will help its sovereign customers command the future air domain(teaming, autonomy, digital services, etc.) and protect key spaceassets -all in a future system-of-systems environment which
will bring real operational superiority and offer synergies withcivil activities.
The successful launch of the Future Combat Air System(“FCAS”) Phase 1B paves the way in this direction. The project
sees major European defence partners cooperating to provethe viability of new high-end technologies – Next Generation
Fighter, Remote Carriers (drones) and a Multi Domain Combat
Cloud. The Company must prepare for phase 2 of FCAS to
begin after the conclusion of the current phase 1B. This will
last until 2028/29 and see a demonstration flight by the nextgeneration fighter jet.
Current developments by the Company of future spacecapabilities and equipment (Low Earth Orbit Positioning,
Navigation and Timing technologies, laser communication
for high-speed modern connectivity, advanced processors
and antennas, Very High Resolution earth observation
solutions) are also spearheading future applications for
defence or sustainability purposes and information superiority.
Importantly, Ariane 6 is also expected to make its maiden
flight in 2024.

4.1 Lead the journey towards clean aerospace
The Company, and the wider aerospace industry, mustfind ways to reduce and ultimately eliminate the impact of
its activities on the climate. This is a clear expectation of
the flying public and society at large, demonstrated by theannouncements and commitments of international bodies
such as the International Air Transport Association (“IATA”)
and the International Civil Aviation Organization (“ICAO”). In

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

response, Airbus is striving to lead the industry on a strong
path to the lowest climate impact solutions as part of theindustry’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. In February 2023, the Company received
approval from the Science Based Targets initiative for its
greenhouse gas emissions near-term reduction targets. Airbus
has committed to reducing its Scope 1 and Scope 2 industrial
emissions by 63% by 2030, in line with a 1.5°C pathway. The
Company also committed to reducing by 46% the greenhousegas emissions intensity generated by its commercial aircraft inservice (Scope 3 – Use of Sold Product) by 2035. Both targets
are based on the 2015 year as a baseline and in line with theParis Agreement goals.
The Company is investing in and developing viable products
and services that are attractive and efficient for its customers
by maturing the technologies related to sustainable aviation
fuels, hydrogen, hybridisation, industrial systems, aircraftarchitectures based on next generation engines, future wing
and fuselage design and automation.
The Company is addressing the challenge of decarbonisation bystimulating the replacement of older planes with newer and more
efficient ones; by preparing technologies for a next generation
Single-Aisle aircraft to be ready in the second half of the next
decade and capable of flying on 100% SAF; by preparing thefirst hydrogen aircraft for 2035; and by being a catalyst within
the industry in the overall transition from fossil fuels to lowcarbon fuels.
Sustainable Aviation Fuels (“SAF”) are essential to reducing
aviation emissions and the aviation sector’s long-term
aspirational decarbonisation goal of reaching “net zero carbon
emissions by 2050”. Global momentum behind SAF continued tobuild in 2023, with more than 40 airlines pledging to ensure SAF
supplies for at least 10% of their fuel needs by 2030. In recent
years, supportive policies have appeared in the US, EU andother regions. On current plans, however, global SAF production
in 2030 will still be only just over half of what is required to beon-track for net-zero CO2 emissions in 2050.
To accelerate the growth of SAF production and uptake, Airbus
continued its advocacy work with the ICAO in 2023, helping tosecure agreement for a much-needed global policy framework
for SAF. It included a target for ICAO member states to use SAF
to reduce their carbon footprint by 5% by 2030. That should help
provide producers of these fuels with the immediate impetus
they need.
Within Airbus, the Company fulfilled a pledge to use 10% SAF
in its own flight operations on the way to using 30% by 2030.
Airbus also continued to form new partnerships to shape thehydrogen ecosystem, including in New Zealand and the UK with
the Hydrogen in Aviation Alliance.
Airbus is also involved in the Single European Sky Air Traffic
Management Research (“SESAR”) initiative to optimise aircraft
operations in Europe. In 2023, Airbus pushed ahead withplans to bring its fello”fly vortex recovery system (“VRS”) into
commercial service later this decade via flight tests through the
SESAR-backed Geese project.

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CO2 is not the only aviation emission known to have an impact
on climate. Airbus is engaged at both the international andEuropean level with research institutes at the forefront ofscientific knowledge on the non-CO 2 effects of aviation tobetter understand and respond to these challenges. In 2023,
a modified glider at the centre of Airbus UpNext’s hydrogen
contrail-studying experiment, Blue Condor, made its firsthydrogen-powered flight. The flight was the Company’s firstever to use hydrogen as the sole fuel source, and it kicked off
a test campaign that is scheduled to conclude in a contrailmeasuring mission in early 2024.
The Company has implemented its high5+ programme targets –a clear pathway to significantly reduce its environmental footprintin manufacturing activities with regards to CO2, energy, water, airemissions and waste. Airbus believes in managing its products’environmental footprint across the entire lifecycle, from thedesign phase, raw material input, through the operational lifeand up to the end of the product life. This optimisation of energy
and use of finite resources should bring both economic andenvironmental benefits.
Airbus satellites are today employed in monitoring the effects
of climate change, with products, such as helicopters, also
playing a key role supporting communities in tackling disasters.

4.2 Build our business on the foundation of safety
and quality
Airbus goes beyond regulatory compliance to ensure thehighest standard of safety and quality measures are applied toits products and services, from design to operation. Airbus takes
a leading position in Air Transport system-wide initiatives and theCompany continues to drive a zero-harm culture mindset shift
in employee health and safety, focusing on protecting its people
and the business from health and safety risks arising from work
activities throughout its value chain. Through its military aircraft,satellites and defence technologies, Airbus provides customers
with the tools they need to defend their sovereignty, and fightterrorism and cyber crime.

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.
The Company believes that everyone who works either for orwith the Company, both within its business operations andthe supply chain, contributes to its continued innovation,
creativity, and business success. Therefore, it is imperativethat the Company fosters empowerment, collaborative working,inclusiveness and diversity to enable a workplace to whichpeople can bring their best selves. The Company ensuresthat its employees have access to a wealth of education andemployee mobility opportunities to grow their skills because
the Company strongly believes a more educated workforce isa more empowered workforce.
As a signatory of the United Nations Global Compact since2003, the Company is committed to upholding international
human rights principles and standards, including theInternational Bill of Human Rights (comprising the Universal
Declaration of Human Rights, the International Covenant
on Civil and Political Rights and the International Covenant
on Economic, Social and Cultural Rights), the International
Labour Organization’s Declaration on Fundamental Principles

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

and Rights at Work and its eight Core Labour Standards.
In doing so, the Company aims to implement policies andprocesses that respect applicable law in the countries inwhich it operates and to take into account the United Nations
Guiding Principles for Business and Human Rights and theOrganisation for Economic Cooperation and Development(“OECD”) Guidelines for Multinational Enterprises.
As declared in Airbus’ Human Rights Policy Statement, theCompany commits to embed and advance respect for humanrights, covering activities under its full, direct control in its
divisions, affiliates and supply chain. The Company has also
committed to undertaking ongoing risk-based human rights
due diligence on such activities to identify, address and remedy
adverse impacts, to prioritise its most salient human rights
issues and to be transparent in this regard.
The Company has also committed to engaging with key
stakeholders and to working proactively, both within and outside
the industry, to collectively address human rights issues andstrive to progress respect for human rights throughout the sector
and beyond.

4.4 Exemplify business integrity
The Company’s operations span across more than 100 countries,
and the Company has committed to being a responsible
corporate citizen and to conduct its business with integrity andin compliance with all applicable laws and regulations, whereverit operates in the world.
As part of this commitment, the Company supports theprinciples of the UN Global Compact and IFBEC’s Global
Principles of Business Ethics, which set a benchmark for highethical standards globally.
At all times, the Company must demonstrate commitment toand drive adherence of its supply chain to the highest ethics
and compliance standards while fortifying its own policies,
programmes and culture so it can conduct business ethicallyand position Airbus as a trusted and reliable partner.
To improve accountability, the Company has established a
dedicated Ethics & Compliance organisation, and continuallyworks to strengthen its compliance programmes. Airbus
wants to ensure that ethical and compliant behaviour is deeply
embedded throughout the Company, as well as being supported
by a clear Code of Conduct and Business Integrity principles.

Organisation of the Company’sbusinesses
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.

1

Airbus (Commercial Aircraft)
Airbus is one of the world’s leading aircraft manufacturers ofpassenger and freighter aircraft and related services.
In 2023, Airbus delivered 735 aircraft (compared to 661 deliveriesin 2022) and received 2,319 gross orders (compared to 1,078
gross orders in 2022). After accounting for cancellations, net orderintake for 2023 was 2,094 aircraft (compared to 820 aircraft in2022). As of 31 December 2023, Airbus’s backlog of commercial
orders was 8,598 aircraft (compared to 7,239 aircraft in 2022).
In 2023, Airbus (Commercial Aircraft) recorded total revenues of€ 47.8 billion – representing approximately 72% of the Company’s
revenues. See “– 1.1.2 Airbus (Commercial Aircraft)”.
On 1 January 2024, the Company implemented a neworganisational set up and top management changes, including
the appointment of a designated Commercial Aircraft leadershipteam, operating under the helm of Christian Scherer.

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 intermediate single-engine, light twin-engine,
medium and medium-heavy rotorcraft, which are adaptable to
all kinds of mission types based on customer needs.
Airbus Helicopters delivered 346 helicopters in 2023
(compared to 344 in 2022) and received 393 net orders in 2023
(compared to 362 net orders in 2022). Order intake amounted
to € 8.6 billion (2022: € 9.3 billion). Military contracts accounted
for 51% of this order volume, with civil sales representing theremaining 49%. At the end of 2023, Airbus Helicopters’ orderbook stood at 804 helicopters (compared to 757 helicoptersin 2022).
In 2023, Airbus Helicopters recorded total revenues of € 7.3 billion,
representing approximately 11% of the Company’s revenues. See“– 1.1.3 Helicopters”.

Defence and Space
Airbus Defence and Space is a European leader in spacesystems, defence and security.
In 2023, Airbus Defence and Space was organised in threemain segments: Military Air Systems (reorganised as Air
Power from 1 January 2024), Space Systems and ConnectedIntelligence. Airbus Defence and Space develops, produces
and maintains cutting-edge products, systems and services,
enabling governments, institutions and commercial customers
to protect people and resources. In 2023, Airbus Defence
and Space recorded total revenues of € 11,5 billion, representing
approximately 17% of the Company’s revenues. See “– 1.1.4
Defence and Space”.

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

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)

2023

2022

2021

Airbus47,763

41,42836,164

Airbus Helicopters

7,337

7,048

6,509

Airbus Defence and Space

11,495

11,25910,186

Subtotal segmental revenue

66,59559,73552,859Eliminations

Total(1,149)

(972)

(710)

65,44658,76352,149ORDER INTAKE BY BUSINESS SEGMENT
2023

2022

(In € billion) (In percentage)(1)

Airbus2021(In € billion) (In percentage)

(1)

162.6

87.0%

Airbus Helicopters

8.6

4.6%

9.3

11.2%

8.6

13.7%

Airbus Defence and Space

15.7

8.4%

13.7

16.6%

13.7

22.0%

186.9

100%

82.7

100%

62.2

100%

Subtotal segmental order intake
Eliminations

Total

59.7

72.2%

(In € billion) (In percentage)(1)

40.0

(0.4)

(0.2)

(0.2)

186.5

82.5

62.0

64.3%

(1) Before “Eliminations”.

ORDER BACKLOG BY BUSINESS SEGMENT
31 December
2023

2022

(In € billion) (In percentage)(1)

Airbus

490.8

88.5%

Airbus Helicopters

21.5

3.9%

Airbus Defence and Space

42.2

7.6%

554.5

100%

449.7

Subtotal segmental order backlog
Eliminations

Total

2021

(In € billion) (In percentage)(1)390.5(In € billion) (In percentage)(1)

86.9%

345.1

86.4%

20.8

4.6%

18.0

4.5%

38.4

8.5%

36.1

9.1%

100%

399.2

100%

(0.6)

(0.4)

(0.8)

553.9

449.2

398.4

(1) Before “Eliminations”.

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

36

Airbus Annual Report

Universal Registration Document 2023

put in place with the subsidiaries and services are invoiced ona cost plus basis.
For management purposes, Airbus SE acts through its Boardof Directors, Chief Executive Officer and Executive Committee 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, eachBusiness Line, Business Unit and subsidiary is vested with full
entrepreneurial responsibility.

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

1.1.2

1

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’ product line comprises
successful families of jetliners ranging in capacity from 100 to
more than 400 seats: the A220; the A320, civil aviation’s bestselling product line; the A330 and the A350 including its freighter
derivative the A350F. Across its portfolio, Airbus’ solutions ensurethat aircraft share high commonality in airframes, on-board
systems, cockpits and handling characteristics. This significantly
reduces operating costs for airlines. See “– 1.1.1 Overview” foran introduction to Airbus.
Airbus’ global presence includes activity in Europe (France,
Germany, Spain and the UK), as well as in Canada, the US,
China, Japan, India and in the Middle East. Airbus also has field
service stations, spares, support and logistics centres as well as
engineering centres worldwide. Airbus benefits from industrial
co-operation and partnerships with major companies and an
extensive network of suppliers around the world.

Strategy
Airbus’ purpose is to “pioneer sustainable aerospace for a safeand united world”. Airbus aims to keep its current commercial
aircraft portfolio competitive and of the latest generation
technology through incremental improvements, while at thesame time pioneering disruptive technologies for the aviationof tomorrow. Airbus strives to find solutions that limit the negative
impact on the environment, and has set itself near-term sciencebased targets to reduce its greenhouse gas (“GHG”) emissions
which were validated by the Science-Based Targets initiative(“SBTi”) in January 2023. The Company’s decarbonisation
roadmap integrates complementary elements, including fleet
renewal, alternative propulsion and fuels, and improvements
to aircraft operations including air traffic management. It also
includes preparing technologies for the next generation of Single
Aisle aircraft to be ready in the second half of the next decade.
Airbus believes that Sustainable Aviation Fuels (SAF) will play a
key role in reducing the environmental footprint of the aviationindustry, as it can be used both for in-service fleets and the flying
fleets of tomorrow. Airbus has tested 100% SAF capabilities onaircraft including the A320neo Family, A330, A350, and A380.
The Company’s ambition is for SAF to be certified for 100% use
in its aircraft platforms before the end of the decade. Airbus isalso actively engaged within the broader SAF ecosystem throughstrategic partnerships and efforts that encourage various SAF
production pathways (including from biomass feedstock, or
power-to-liquid technologies, etc.) with the aim to foster thedevelopment of the SAF market. Hydrogen is another areaof focus. In September 2020, Airbus revealed three differenthydrogen-powered concept aircraft entitled “ZEROe”, and Airbus
has engaged in a number of R&T projects and partnerships withthe objective to bring a hydrogen-powered commercial aircraft
to market in 2035. Success towards Airbus’ decarbonisation
roadmap can only be possible with the consistent engagementof the whole aviation ecosystem. As a result, Airbus strives tofoster collaborative engagement and is in constant dialogue withkey stakeholders including airlines, operators, energy producers,
financiers, regulators, industry organisations, non-governmentalorganisations and others, and engages with these stakeholders
at events such as the Airbus Capital Markets Day, the Airbus
Summit or the Airbus Supplier Sustainability Council (establishedin 2022).
For further information, see “– 1.1.1 Overview – Strategy” and“Non-Financial Information – 1.2.2 Climate change”.
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 andresilience. Airbus intends to further strengthen its industrial set-up
and industrial flow. The further transformation of the industrial
value chain will ultimately improve the quality, competitiveness,agility and the sustainability of the entire ecosystem.

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 and Operations-related
Risks – Commercial Aircraft and Helicopter Market Factors”.

Demand for air transport
The fundamental drivers behind the need for air transport remainunchanged, enabling highly-efficient physical links between
people and distribution of goods at a global scale.
The long-term market for passenger aircraft depends primarily
on passenger demand for air travel, which is itself primarily driven
by economic or GDP growth, trade, fare levels and demographic
growth. Measured in revenue passenger kilometres (“RPK”),
air travel increased in every year from 1967 to 2000, except for1991 due to the Gulf War, resulting in an average annual growthrate 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.
At the end of 2008 and in 2009, the financial crisis and global
economic difficulties resulted in only the third period of negative
traffic growth during the jet age, and a cyclical downturn forairlines in terms of traffic (both passenger and cargo) yields andprofitability. Despite these perturbations, the market recovered,driven by the underlying demand for air transport. After 2009 until
the COVID-19 pandemic, the industry benefited from a prolonged
period of stability which enabled airlines to collectively deliverprofitability at historically high levels.

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

After the COVID-19 pandemic hit in 2020, the demand for airtransport began to recover as soon as travel restrictions werelifted.
Throughout 2023, the air transport recovery continued strongly,
with IATA reporting traffic (RPK) globally at 94.1% of 2019 volumes
compared to 68.5% in 2022. Average passenger load factors
increased to 82.3%, just short of the record 82.6% achieved in
2019. The abandonment of China’s “Zero-COVID” policy further
accelerated the recovery with long-haul markets to/from China
continuing their recovery into 2024. The demand for air transport
was mainly driven by macroeconomics and demographics while
the impact of fuel price and inflationary pressures remained
measured.
In 2023, geopolitical tensions impacted air transport only mildly,
primarily through their indirect macroeconomic effects. The
impact of Russia’s invasion of Ukraine on global air transport
has stabilised, despite the application of sanctions to Russian
operations and the closure of Russian airspace to the airlinesof all countries choosing to apply sanctions. However, tensions
in the Middle East could impact air transport if a potential
airspace closure were to affect large Middle East hubs. The
overall geopolitical situation added pressure on global supply
chains and logistics.
As more governments adopt a public policy to drive towards
a net-zero 2050 carbon emissions aspirational target, aviation
will continue to play its part. Decarbonisation is likely to be
encouraged by regulatory measures including incentives andtaxation to varied extents in different regions. This may increase
the differentiation between the costs of operation of more orless fuel-efficient aircraft. Aviation growth has been driven
by consistently strong improvements in efficiency, and pastincreases in fuel prices have been largely passed through toconsumers, although regional differences may be observed.

Air cargo market
On the air cargo market, around 1% of world freight tonnekilometres is carried by air, representing approximately ~30%of the total value of freight. After a period of exceptionally highdemand and high yields during the recovery from the pandemic,
the air cargo market softened during 2023 and is now driven by
the cyclical, and macroeconomic factors typically affecting it.
However, it remains close to pre-COVID levels.
Belly cargo capacity will return to the market as stored Widebody
aircraft re-enter service. Significant numbers of converted
freighter aircraft ordered during the pandemic will enter into
service, mainly replacing older aircraft. The freighter fleet
contains a higher proportion of older aircraft, and consequently
future deliveries will be more for replacement than growth.
E-commerce growth will continue to be a strong driving force
and will take an increasing share of the air cargo market. Shortterm headwinds include inflation, the strength of the US dollar
and trade disruption. Short-term tailwinds include the short-term
increase of air freight demand, pricing increases in response tocontainer ship capacity shortage and increased container ship
voyage times due to the Red Sea and Panama Canal blockages.

38

prove sufficiently strong, airlines often employ direct “point-topoint” route services. However, where demand between two
destinations proves insufficient, airlines have developed 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.
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.
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 entire Airbus
product offering from the A220 up to the A350. Airbus believes
that it is well positioned to meet current and future market
requirements given its complete family of products.
After the COVID-19 crisis, airlines are reviewing their positioning
and business models in the frame of restructuring their operations
and preparing their own decarbonisation strategies, including
fleet renewal. Airbus expects that existing networks will forthe most part be continued, with adaptations building on theopportunities emerging from their forced, temporary downsizing.
The availability of new-generation longer-range single aisle
aircraft from 2024 onwards, such as the A321XLR, will provide
greater optionality to airlines, while the operating range flexibilityof Airbus A350 models provide resilience in the face of airspaceclosures and longer flight routings.
Alliances. The development of world airline alliances has
reinforced the pattern of airline network development describedabove. According to data from Cirium, a UK-based aviationindustry 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.

Overall growth of commercial aircraft demand
The combination of production disruptions, COVID-19 and its
consequences led to approximately ~3,500 fewer new aircraft
being delivered over the last five years than industry had previously
planned to produce. This led to longer retention of older aircraftin airline fleets, lower short-term rates of replacement and astrengthened demand for the latest fuel-efficient aircraft.

Airline network development:“hub” and “point‑to‑point” networks

The recovery after the pandemic has been following a similar
pattern as in past recoveries. A significant part of the stored
aircraft returned to service, complementing newly delivered
aircraft, and load factors and aircraft utilisation improved,
followed by yields. During the recovery, competitive marketbased financing for new aircraft deliveries has remained available.

Following deregulation, major airlines have sought to tailor theirroute networks and fleets to continuing changes in customer
demand. Accordingly, where origin and destination demandCurrently, the industry faces some imbalance as the shortageof new aircraft has triggered maintenance investment in older
aircraft which will stay in service longer until they can be physically

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

replaced. Overall, the market for new commercial aircraft has
evolved from oversupply during the pandemic to under-supply.

reach into longer-haul markets and the appeal of A330neo for
example in the Middle East and Asia.

The Company’s assessment is that the pandemic has not
structurally changed the long-term market for commercial
aircraft.

“Freight” aircraft, such as the A350 Freighter, which form a third,
related segment, are a combination of newly built and converted
ex-passenger aircraft. Converted aircraft are prevalent in the
expanding e-commerce market, which typically sees a relatively
low utilisation of new aircraft. This can provide an economical“second life” for in-service aircraft from the A320 and A330
families. See “– Airbus Canada, Regional Aircraft, Aerostructures,
Seats, Aircraft Conversion – EFW”. In 2021, Airbus launched a
new A350F freighter model in response to customer demand.
The addition of a freighter variant is also expected to contributeto a greater resilience of the A350 Programme to future market
fluctuations.

Airbus’ 2023 Global Market Forecast projects that demandfor passenger traffic will grow annually by 3.6% CAGR
(Compounded Annual Growth Rate) between 2019 and 2042
and that demand for air cargo will grow by 3.2% CAGR overthe same period. The forecast is based on macroeconomic
assumptions from information services provider IHS-Markit
and energy price projections considering the European Union
Emissions Trading System (“EU-ETS”), the Carbon Offsetting
and Reduction Scheme for International Aviation (“CORSIA”) andstated environmental policies of sovereign states. The forecast
explored thousands of sensitivities around future energy prices,
SAF penetration rates, GDP, fuel efficiency gains, etc. and reflects
the median outcome of these scenarios.
Airbus forecasts a demand for approximately 40,850 new
passenger and freighter aircraft deliveries over the next 20 years,of which approximately 32,630 (~80%) would typically be Single
Aisle and 8,220 (~20%) Widebody. Around 17,170 of these aircraft
would replace existing aircraft. The demand for Freighters is
expected to reach approximately 2,510 aircraft over the next
20 years, with roughly 920 of these being newly built aircraft,
and the remainder converted from the in-service passenger fleet.
The centre of gravity of global air transport will continue to shift
towards Asia, with the strongest growth markets being thoseto/from/within India and China.
Airbus is focused on providing more fuel-efficient aircraft for
fleet replacement and growth. Currently only 30% of the world
fleet consists of the latest-generation aircraft typified by Airbus’
current portfolio. Through its analysis Airbus continues tobelieve in the long-term growth potential of the industry, andconsequently aims to accelerate the development of loweremission technologies, including hydrogen-powered aircraft, andfoster ecosystem readiness and the dynamic deployment of SAF.
A full overview of the Company’s roadmap to reducing emissions
can be found in the “Product Stewardship” section of 1.2.2(IV).

Market Structure and Competition
Market segments. Airbus competes in each of the threeprincipal market segments for aircraft with more than
100 seats.
Single-Aisle and Widebody aircraft each have a large breadth ofapplication to route networks. Single-Aisle aircraft typically fly on
shorter routes but may also fly on medium-to-long-haul routes.
Widebody aircraft typically fly on medium-to-long-haul routes
but may equally fly on short-haul sectors where airline network
efficiencies, cargo demand or slot constraints favour such use.
Airbus’ annual Global Market Forecast is a 20-year demand
forecast for aircraft of 100 seats and above clustered by genericsizes, recognising that the size and range characteristics of future
products in the industry are not fixed. In Airbus’ 2023 Global
Market Forecast this demand has been clustered simply into
two categories: “Typically Single-Aisle” and “Typically Widebody”
but the forecast recognises a degree of permeability between
these two demand categories as illustrated by the A321XLR’s

1

With the ACJ, Airbus also competes in the corporate and VIPbusiness jet market. The ACJ portfolio is composed of the
ACJ319neo, the ACJ320neo, the ACJ330neo and the ACJ350.
To complete the ACJ family, the first ACJ TwoTwenty enteredinto service in April 2023.
Geographic differences. The high proportion of single aisle
aircraft in use in North America and Europe reflects the
predominance of domestic short-range and medium-range
flights, also resulting from the expansion of low-cost carriers and,particularly, in North America from development of hubs following
deregulation. In comparison with North America and Europe,
the Asia-Pacific region uses a greater proportion of twin-aisle
aircraft, as populations tend to be more concentrated in large
urban centres. The use of twin-aisle aircraft is also reinforced by
the fact that many of the region’s major airports limit the numberof flights due to environmental concerns or the infrastructure
constraints that limit the flight frequency. These constraints leadto higher average aircraft seating capacity per flight. However,Airbus believes that demand for single aisle aircraft in Asia willgrow over the next 20 years, particularly as domestic markets
in China and India will continue to grow 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 aresult, 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
in which to participate, and besides Boeing, Airbus faces
international competitors. Embraer’s primary focus has beenon the regional market where its largest E2-jet product overlaps
with the smallest Airbus aircraft. Embraer has not announced
intentions for higher-capacity aircraft and shelved plans for a
70/90-seat regional turboprop in early 2023. Mitsubishi Heavy
Industries previously cancelled their regional aircraft programmeprior to Entry-Into-Service. New Russian programmes in the
100-seat and 180-seat categories are supported with renewed
political vigour and resource but delayed by several years whilst
components are substituted by those of Russian manufacture.
These have a limited addressable market.
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,

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

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 products,
the A220-100 and A220-300, targeting the 100-150 seat market
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.
In December 2022, the Chinese manufacturer COMAC delivered
the first C919 airliner, a direct competitor to the A320neo. By end2023, three aircraft were in service with launch customer China
Eastern. In late 2023, COMAC showed concepts for shorter andlonger-fuselage variants of the C919 but without providing firm
timelines, and reaffirmed their ambition to develop the C929
Widebody in the early 2030s. This ends the period of a duopoly
in the mainline commercial aircraft market. Airbus considers
that COMAC’s progression will be measured, determined, andpaced by their industrial ramp-up as well as the time needed
to build a reputation for reliability and support. Consequently,
Airbus considers the likely market penetration of this competitor
to be a more significant risk in the 2030s.

Customers
As of 31 December 2023, Airbus had 446 customers and a totalof 23,795 aircraft had been ordered, of which 15,197 aircraft had
been delivered to operators worldwide. The net backlog stood
at 8,598 aircraft.
The table below shows Airbus’ largest commitments in termsof total gross firm orders by customer during the year 2023
(minimum 50 units).
Customers

Firm orders(1)INDIGO500

AIR INDIA

250

TURKISH AIRLINES

234

EASYJET

157

AVOLON120

WIZZ AIR75

QATAR AIRWAYS

73

UNITED AIRLINES

60

SMBC AVIATION CAPITAL

60

LUFTHANSA55

AIR FRANCE – KLM Group50(1) Options are not included.

40

Airbus Annual Report

Universal Registration Document 2023

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 these aircraftwithin the Airbus family with minimal additional training.
Cross‑crew qualification across families of aircraft supports
airlines with operational flexibility. In addition, the emphasis on
fleet commonality permits aircraft operators to realise significant
cost savings in crew training, spare parts, maintenance andaircraft scheduling. The extent of cockpit commonality within
and across families of aircraft is a unique feature of Airbus that,in management’s opinion, constitutes a sustainable 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 fibre 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, 2022 saw the first deliveryof the ACJ TwoTwenty business jet, based on the A220-100,
combining an intercontinental capability of over 12 hours flight
duration with unmatched personal space and comfort (outfittingof the first cabin was completed in 2023). 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 2023, Airbus received 142 gross orders for the A220
Family of aircraft and 141 net orders, with 68 aircraft having
been delivered.

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

1

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 18,460 aircraft sold, and over
11,200 delivered by the end of 2023, the A320 Family of single
aisle 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 a wider fuselage
than the 737 MAX. This provides a roomy six-abreast passenger
cabin, a high comfort level and a spacious under floor cargovolume. The A320 Family incorporates digital fly-by-wire
controls, an ergonomic cockpit and a modern structural
material selection. The competitors are the Boeing 737 series
and Comac C919.
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 variants of
the A319neo & A320neo and most recently the A321XLR. The
A320neo Family incorporates many innovations including latest
generation engines and cabin improvements which togetherdeliver up to 20% in fuel savings per seat 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. 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 7,280km(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 with
8,700km (4,700nm). The A321XLR entry into service is to takeplace in 2024.
Since its launch in December 2010, the A320neo Family hasreceived 10,354 firm orders from more than 130 customers, witha total of 3,163 aircraft delivered to the end of 2023. 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 2023, Airbus received 1,835 gross orders for the A320
Family of aircraft and 1,675 net orders, with 571 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)35.8

A319neo2019 (ACJ)

120 to 150

6,760

33.8

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 1,771 aircraft sold (of which 296 A330neo) and
1,591 delivered, the A330 Family covers all market segments with
two twin-engine aircraft types and is designed to typically carry
between 220 and 300 passengers in three-class configurations
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 militaryplatform and as a cargo variant. A passenger-to-freighter
conversion is offered by the ST Engineering / EFW partnershipfor both the A330-200 and A330-300, meeting the logisticalneeds of the rapidly growing e-commerce market.
T h e c o m p e t i to r s o f t h e A 3 3 0
Boeing 767 and 787 aircraft series.

Fa m i l y

are

the

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

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

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. Certification and first delivery of the A330-800,
to Kuwait Airways took place in 2020. In October 2020 Airbus
certified an improved MTOW (Maximum Take-Off Weight) of 251t

on the A330-900 bringing a range increase of 1,180 km (650 nm).
251t MTOW was also certified for the A330-800 in mid-2022.
During 2023, Airbus received 42 gross orders for the A330 Familyof aircraft (of which five military variants) and recorded -3 netorders, 32 aircraft having been delivered.

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 Family. The A350 is a family of wide-body aircraft,designed to typically accommodate between 300 and
410 passengers. The A350 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’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 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.

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.
During 2023, Airbus received 300 gross orders for the A350
Family of aircraft (of which 15 freighters) and 281 net orders, 64
aircraft having been delivered.
At the end of 2023, the total orders for the A350 Family stood
at 1,206 aircraft, including 50 for the A350F. With 585 aircraft
having been delivered the backlog stood at 621 aircraft.

A350 FAMILY TECHNICAL FEATURES
Model

Entry-into-service

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

Wingspan (metres)

A350-9002014

300 to 350

15,40066.8

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.

The final five deliveries of the A380 took place during 2021 while
the aircraft is likely to remain in service with its customer airlines
well into the next decade.

A380 TECHNICAL FEATURES
Model
A380-800

Entry-into-service

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

Wingspan (metres)

2007

400 to 550

14,80072.7

79.8(1) Four-class layout.

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

Customer Services
Demand for services is increasing. In 2023, the aftermarket
players served more than 24,000 airliners (passenger aircraft
above 100 seats & freighters with a payload above 10t). Airbus
Customer Services plays in this market with the aim of being thecustomers’ companion in fleet management and operation allalong the aircraft lifecycle, acting together for safe & sustainableaerospace.
This is achieved thanks to a wide range of customer centricand value-added services. Airbus is well positioned to answer
today’s and future services needs in order to support theindustry. Here are some examples:–– Airbus Beluga Transport, an Airbus airline specialised service
on oversized cargo transportation, was granted with its Air
Operator Certificate to operate as an autonomous freightairline.
–– Satair has established a legal entity, Satair (Chengdu)
Co., Ltd, in China. The creation of this new legal entity
supports Satair’s commercial strategy of ramping up Used
Serviceable Material (USM) growth and localising services tosupport the substantial growth expected in both the Chineseand global commercial aviation USM markets (with 40%
growth expected worldwide through 2027).
–– EasyJet has become the first airline in the world to sign acontract with Airbus for its carbon-removal initiative. The
Company believes that direct air carbon capture and storage(DACCS) is a high-potential technology that could turn out
to be meaningful in carbon schemes applicable to aviation.
–– Vietnam Airlines has taken a significant step towards
maintaining safety, enhancing sustainability and operational
efficiency in its engineering operations by signing for the
Airbus Skywise Predictive Maintenance (SPM) digitalsolution. The long-term agreement covers up to 65 A321
Family aircraft (A321ceo and A321neo), and represents a key
milestone in the ongoing digital transformation of Vietnam
Airlines.
–– Air France and Airbus are in exclusive negotiations toestablish a joint venture for the provision on a worldwide
basis of Airbus A350 component maintenance services.
–– 52% of Airbus in service fleet is connected to Skywise core(149 Operators, 51,67% of Airbus A/Cs with 7,038 A/Cs, +972
A/Cs compared to end of 2022).
In 2024, the priority of Customer Services will be supportingits customers to face increasing air transport demand in acompetitive way. 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 andpassenger experience.
With a worldwide network of 7,500 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; 260 field service representatives
positioned in over 60 countries for on-site assistance to ouroperators and a system of empowered local teams in Asia,
Africa, China the Middle East and the US; Airbus targets toremain at the forefront of the industry.

1

To succeed in this context, Customer Services will continue
working on the transformation plan based on three pillars(customer value, customer experience and sustainability)
through optimisation and simplification of our products andfurther industrialisation of activities to decrease costs andincrease efficiency; aiming to become a relevant contributor
to the financial 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
to corporate oversight and monitoring, and follows strict
standards of discipline and caution. Airbus’ dedicated customer
finance team 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 (for further information, please refer tothe “Notes to the IFRS Consolidated Financial Statements– Note 27: Sales Financing Transactions”). Airbus’ customer
financing transactions are designed to facilitate subsequentsell-down of the exposure to the financial markets, third-party
lenders or lessors.
In 2023, 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, as it has done throughout the COVID-19
pandemic, and has actually decreased compared to 2019.
Airbus will continue to provide direct aircraft financing support
as it deems necessary. Management believes, based on its
experience, that the level of provisioning protecting Airbus fromdefault costs is adequate and consistent with standards andpractice in the aircraft financing industry. See “Risk Factors– Business and Operations-related Risks – Sales Financing
Arrangements”.
Trading activity has not changed substantially 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 for an
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.

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

Operations
Industrial Organisation
Airbus’ industrial organisation reflects the end-to-end industrial
flow across all Airbus commercial aircraft programmes. The
industrial value streams flow from the supply chain, throughAirbus’ two Aerostructures companies, the constituent andmajor component assembly (wing, forward and aft fuselage,
and nose and centre fuselage) and to the final assembly inToulouse, Hamburg, Tianjin and Mobile. Aircraft are then handed
over to programme management for delivery to customers. The
industrial flow is enabled by Quality and 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 and prevention 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 raw materials, parts and services
are delivered at the most competitive conditions, on time, costand quality. A dedicated Procurement Operations team manages
the delivery stream from the supply chain in accordance with theagreed conditions to enable the production flow.
Adherence to quality standards and internal processes throughout
the flow allows strict compliance with safety requirements, serves
the customer satisfaction and enables a seamless production.
This is being controlled through internal audits and operational
surveillance, by delegation from EASA, by the Quality function.
Thanks to external audits, Airbus is granted all necessary EASA
approvals, Production Organisation Approvals (POA), Design
Organisation Approvals (DOA), Maintenance Organisation
Approvals (MOA) and EN9100 certification to design, produce,
deliver and maintain its products. A two year internal surveillancecycle has been closed in 2023, demonstrating full compliance to
EASA part 21G (requirements for Production activities). Striving
for further improvement has motivated the launch of the Quality
Transformation programme to reinforce risk prevention activities
as well as problem solving competencies throughout the end
to end value stream.
This way of working along the 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 2023, Airbus served 87 customers with 735 deliveries, anincrease of eleven percent compared to 2022. The delivery
result was in line with the delivery guidance set at around 720
aircraft, despite the complex operating environment including
a challenging supply chain situation and geopolitical tensions.
Airbus continues to ramp-up as planned to serve the strong
demand for its commercial aircraft product portfolio.
As part of that ramp up, Airbus has enabled all of its assembly
sites to be A321 capable, thereby enabling a bigger share ofA321 deliveries.
2023 delivery performance and rate evolution:–– A220 family: 68 A220 delivered. The ramp-up continues
towards a monthly production rate of 14 aircraft in 2026;–– A320 family: 571 deliveries achieved. The production isprogressing towards the rate of 75 aircraft per month in 2026;

44

Airbus Annual Report

Universal Registration Document 2023–– A330: 32 deliveries achieved. The Company continues
towards a monthly rate of four aircraft in 2024;–– A350: 64 deliveries achieved. The Company continues
towards a monthly rate of ten aircraft in 2026.

Technology & Engineering
Headed by the Chief Technology Officer, Airbus Technology& Engineering is a global organisation leading and managing
Airbus product certification and continued airworthiness, as wellas supporting in-series production and in-service modifications,non-conformities and continuous improvements.
The Technology & Engineering organisation has the mission to:–– develop and deliver new aircraft architecture and design
regarding safety, manufacturability, operability, maintainability,
fuel-efficiency and environmental compliance;–– support the in-series products manufacturing and in-service
operations by delivering definition dossiers and answers totechnical queries;–– Foster the competitiveness of Airbus’ product and service
portfolio in the medium- and long-term, and drive a companywide synergetic approach to technologies, leveraging on
Airbus’ unique history, DNA and product culture to shape
the future of aerospace.
The team operates transnationally, with employees located in
France, Germany, the UK, Spain, the US, Canada, India, China
and Singapore.
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, and generate
solutions on topics related to airframe, aircraft systems, flightphysics, propulsion, cabin and cargo. The flight & integration
test centre supports both the development of new aircraft
programmes and the deliveries of the in-series products, thanks
to their flying & non-flying teams.
The architect and integration centre ensures, together witha team of senior aircraft architects and the programme chiefengineers, that a consistent and multi-disciplinary approach isapplied during aircraft development, while acting as the homebase of the certification & continued airworthiness delegates. The
strategy and transversal integration centre ensures consistency
between engineering and corporate strategy, acts as the referent
for configuration management, process, methods and tools forengineering, and drives the forward looking transformation of thefunction. The in-service engineering, acting in close cooperation
with customer services, is providing skilled resources to handle
customer technical queries, such as repairs, as well as support
the resolution on recurrent in-service issues.
The R&T Programme department applies a lean project-based
approach, tracked and managed using earned value management,
technology readiness levels and figures of merit. Technologicalcollaboration with external research communities and partners
is encouraged and coordinated through the department withtechnical and scientific experts. The Company-wide integration of
R&T technology and alignment with institutional research partners
is achieved through cross-portfolio technology planning androadmapping, giving an exhaustive view of technology targets
and investments. In addition, Company-wide engagement forjoint funding with public agencies is achieved through a common
R&T Funding contract management.

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

1

Airbus Canada, Regional Aircraft, Aerostructures, Seats,
Aircraft Conversion
Airbus Canada Limited Partnership
Airbus Canada Limited Partnership (“Airbus Canada”) wasestablished on 1 July 2018 following the transaction between
Airbus, Bombardier and Investment Quebec. In February 2020,
Bombardier exited the partnership. At the end of 2023, theAirbus Canada shareholding structure was 75% Airbus and
25% Investment in Quebec.
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 6,670km. 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 fuelburn per seat than previous generation aircraft, half the noise
footprint, and decreased emissions. In addition to the airliner
versions, in 2020 Airbus Canada launched the ACJ TwoTwenty,
creating a new business jet market segment by offering anintercontinental capability of over 12 hours flight duration (upto 10,465km) with unmatched personal space and comfort.
In 2023, Airbus Canada has delivered 68 aircraft (compared
to 53 aircraft in 2022) and has a backlog of 600 aircraft as ofDecember 2023. Through the end of December 2023, 314 A220
have been delivered.
Industrial Footprint. A220 has two final assembly lines, one in
Mirabel and one in Mobile. In 2022, the Mirabel A220 site was
expanded with the addition of a sub-assembly area, known asa pre-final assembly line (pre-FAL).

ATR
ATR (Avions de Transport Régional) is a world leader in themarket for regional aircraft up to 90 seats. Its aircraft has over
200 operators in more than 100 countries. ATR is an equal
partnership between Airbus and Leonardo, with Airbus’ 50%
share managed by Airbus ATR organisation. Headquarteredin Toulouse, ATR employs about 1,376 people. Since the startof the programme in 1981, ATR has registered net orders for
1,825 aircraft (522 ATR 42s and 1,303 ATR 72s).
In 2023, ATR delivered 36 new aircraft (compared to 25 in 2022)
despite supply chain crisis and recorded net firm orders for 41
new aircraft (compared to 13 in 2022). As of 31 December 2023,
ATR had a backlog of 141 aircraft compared to 138 in 2022.
By the end of 2023, ATR has delivered 1,682 aircraft.

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 was developed, since then ATR
achieved the delivery of 19 ATR72-600F to FedEx Express(thereof eight in 2023).
Finally, the Company’s aircraft family is being extended withthe development 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.
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’s
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. Finalassembly takes place in Saint Martin near Toulouse on the Airbus
commercial aircraft production site. Flight-testing, certificationand deliveries also occur in Toulouse. ATR outsources certain
areas of responsibility to Airbus, such as wing design andmanufacturing, flight-testing and information technology.

Airbus Atlantic
Established on 1 January 2022, Airbus Atlantic is a whollyowned subsidiary of Airbus. Airbus Atlantic is a global industrial
leader, a key pillar of Airbus and a partner of choice for its
customers around the world. Building on its highly skilled
teams and its entrepreneurship mindset, Airbus Atlantic
innovates, shapes new standards of industrial excellenceand prepares the future for a sustainable and competitive
aerospace industry.
Counting more than 13,000 employees in five countries andthree continents, including 10,000 employees in France and3,000 worldwide (Canada, Tunisia, Morocco and Portugal),
Airbus Atlantic is the world n°2 player in aerostructures market,
n°1 in pilot seats and ranks in the top 3 for Premium passenger
seats 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.
As such, Airbus Atlantic is an essential part of Airbus’s value
chain and plays a key-role in the whole aerostructures’ supplychain with more than 500 suppliers on flying products and morethan 2,000 on general procurement products.

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

In terms of activities and expertise, Airbus Atlantic:–– has a wide range of metallic and composite aerostructure
capabilities, from Build-to-Print to Design & Build solutions;–– is one of the few companies in the world able to delivercomplete and fully equipped and tested aircraft sections(“Plug & Fly”), integrating hydraulic and electric systems;–– designs and manufactures luxury First Class and Business
Seats for more than 50 airlines in the world including
Lufthansa, Singapore Airlines, China Airlines, Air France or
Etihad Airways;–– provides pilot seats, and offers support from design toproduction, including after-sales service;

Airbus Aerostructures and Premium
Aerotec Industry
Besides Airbus Atlantic, the Airbus Aerostructures organisationis the other aerostructure subsidiary of Airbus, leveraging theCompany’s competencies globally, keeping strategic flexibility
for resource allocation and building an international company
culture. The organisation of Airbus Aerostructures, together
with Airbus Atlantic serves the Company’s strategy, as set out
by the Executive Committee and agreed with its shareholders.
Remaining detailed parts activities are concentrated underPremium AEROTEC Industry inside Airbus GmbH whichbecame the body for the new holding structure in Germany
with two companies, Airbus Operations GmbH and Airbus
Aerostructures GmbH. There will be a review with regards tothe possible legal integration of Premium AEROTEC Industry
into Airbus Aerostructures in 2025.
Airbus Aerostructures is a 100 percent owned Airbus subsidiary.
Formal governance bodies and regular management meetings
between both ensures business coordination. The company is
an integrator for commercial aircraft parts management. Witharound 11,000 employees, Airbus Aerostructures combines
technology and innovation leadership to pioneer efficient aircraft
production and to contribute to the aim of making decarbonised
flight a reality. Airbus Aerostructures includes four production
sites in Germany: the headquarters in Hamburg with three otherplants in Nordenham, Bremen and Stade where work goes ontoday on the aerostructures of tomorrow’s aircraft.
Premium AEROTEC Industry delivers commercial and military
aircraft structures and detail parts and is a partner in the major
European international aerospace programmes. Premium
AEROTEC Industry counts about 4,000 employees at various
sites in Germany and Romania. Premium AEROTEC Industry
is represented by its products in all Airbus commercial aircraft
programmes. The current military programmes include theEurofighter “Typhoon” and the military transport aircraft A400M.
Premium AEROTEC Industry plays a significant role within
new concepts regarding metallic and composite aerostructure
activities or 3D-printing of aircraft components made of titaniumor aluminium.

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Elbe Flugzeugwerke GmbHEFW 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).
EFW has been the excellence centre for Airbus conversions
for more than 25 years and re-delivered 200 converted aircraftof 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.
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 2023, a total of 33 A330P2F has been re-delivered,after a modest start of this programme. The customer demandfor conversions of this Widebody aircraft increased remarkably
during the last three years. By the end of 2023, it has beensuperseding the conversion requests for the latest Single-Aisle
programme of A321P2F and A320P2F which entered the market
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
was delivered in September 2020, and in 2023, 22 further
321P2F were re-delivered.
By the end of 2023 EFW had secured more than 150 P2F orders
in total.
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 by2024 meaning to treble capacity compared to 2021.

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

1.1.3

1

Helicopters

Airbus Helicopters is a global leader in the civil and militaryrotorcraft market, offering one of the most complete andmodern ranges of helicopters, drones and related services. This
product range currently includes intermediate 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’ portfolio.

Ambition & Company Strategy
Airbus Helicopters’ purpose is to provide the most efficient VTOL
(vertical take-off and landing) products and service solutions to its
customers who serve, protect, save lives, connect communities
and safely carry passengers in demanding environments. The
ambition of Airbus Helicopters is to lead the helicopter businessand pioneer new VTOL aircraft for a sustainable future.
In this regard, the strategy of Airbus Helicopters is to preserve
its leadership in the Civil & Parapublic market, improve its
market share and resilience in the growing military market, while
preparing the future of Unmanned Aerial Systems (UAS) and
exploring new businesses.
The strategic priorities are:
1. Customer Loyalty: Airbus Helicopters ambition is to grow in thevalue chain of its customers and become the first obvious choicefor the market over the next five years. To execute this priority,a special focus is to improve fleet availability, especially for its
military customers. Further, Airbus Helicopters is committed to
improving the end-to-end customer experience by delivering atrue premium service in terms of quality and communication,
while also adapting its global contract offer (from the HCarecatalogue) to the customer’s profile. Finally, investing in stockand new repair capacities is key to strengthening the trust ofcustomers.
2. Innovation: Airbus Helicopters has the objective of making
helicopters and VTOL flight safer, simpler, more affordable andcitizen friendly. Airbus Helicopters is committed to achieving
first flights for key demonstrators, along with progressing
on the certification path towards autonomy and disruptive
technological developments that will pave the way for new
VTOL solutions such as City Airbus NextGen. In addition,
innovation covers connectivity and digital applications to serve
current and future customers with more efficient and mature
solutions, especially in the military field. One example consists
in developing the Manned-Unmanned Teaming concept to pairhelicopters with drones.
3. Defence & Security: Airbus Helicopters acts as a global player
in the military market to reinforce its competitiveness andresilience. Airbus Helicopters is investing in key developments
to support home nations while reinforcing its presence andinfluence in export countries in order to increase its market
share. The product policy of Airbus Helicopters is driven by
the willingness to offer and maintain the broadest dual range of
products among OEMs, perceived as a fundamental advantage
by its customers.

4. Sustainability: Airbus Helicopters wants to accelerate its
commitment to pioneering sustainable aerospace. The
Company is engaged and committed to its decarbonisation routeby taking more ambitious steps to reduce the environmental
footprint of its products, and to reduce its Scope 1 and Scope 2
industrial emissions. On top of it being a duty for each and every
business to contribute positively to a more desirable future,
Airbus Helicopters considers sustainability as an opportunity
for the company and for its customers in terms of increased
efficiency, attractiveness, resilience and competitive advantage.

Transformation
The Company is pursuing its journey for its transformation. Whilemaintaining its focus on aviation safety and quality, specificattention is put on performance improvement with lead time
reduction and on time deliveries in order to enhance customer
satisfaction.
Airbus Helicopters continues to refine and execute its
transformation plan in order to achieve sustainable performanceand be agile in order to maintain its competitiveness in the faceof market evolution and economic conditions, and retain its
ability to invest in the future. This plan is combining projects
aiming to make significant steps forward in performance in key
areas (e.g. on supply chain and spare parts) and implementing
further continuous improvement initiatives. In parallel Airbus
Helicopters is preparing its next transformation phase, after
2025, to anticipate and prepare the future.
Airbus Helicopters continues to deploy data governanceand accelerate its digital transformation based on standard
capabilities to deliver digital continuity for integrated data-driven
processes. A specific focus in 2024 will be on data quality, inorder to have solid foundations to deploy new “data-driven”
technologies.

Commitment to Innovation
In 2023, Airbus continued to invest in R&T and productdevelopment for both the civil and military markets. Airbus
Helicopters’ FlightLab successfully tested an electric flight control
system in preparation of a new human machine interface (HMI)
that will equip CityAirbus NextGen, Airbus’ eVTOL prototype.
The pilot controls were considerably simplified thanks to theenhanced piloting assistance provided by the electric flightcontrol system. Marking a first in the helicopter industry, one
single piloting stick replaces the three conventional pilot controls(cyclic, pedals, collective) and is able to control all aircraft axes.
The single stick takes up less space, offers improved visibility
to the pilot and is combined with a revised HMI which uses
simple displays, providing a selection of information specificallytailored to eVTOLs. Following this successful Fly-by-Wire flighttrials, Airbus Helicopters, in partnership with Airbus UpNext
were able to test advanced autonomous features through a
project code-named Vertex. These technologies are controlled
by a touchscreen tablet and aim to simplify mission preparationand management, reduce helicopter pilot workload, and further
increase safety. Vertex was tested between October andNovember and was able to demonstrate a fully automated flightfrom lift-off, taxi, takeoff, cruise, approach and then landing byfollowing a predefined route.

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

A new test centre was inaugurated in Strykow, Poland, toperform mechanical tests on rotating components in supportof our global research and development activities. It willcomplement the design and development capabilities offeredby the engineering office Airbus Helicopters already has in Lodz.
On the military side, the Company has focused on thedevelopment of the H160M in the frame of the joint lighthelicopter programme for the French armed forces as well as theongoing development of the Tiger Mk3 upgrade for the Frenchand Spanish armies. The H175M pursued its development andsuccessfully performed flight demonstrations in the extreme hot
and high conditions of the desert in Saudi Arabia. The Company
has also continued to expand the mission capabilities of the
H145M and ended the year with the largest ever contract for
the H145M, up to 82 light attack helicopters, for the German
Army and Special Forces.
At the end of November, the first NH90 Sea Tiger took off onschedule for its maiden flight, at Airbus Helicopters’ site in
Donauwörth, Germany. The Sea Tiger is the latest version of
the proven NH90 NFH (Naval Version). It has been specificallydesigned to match the needs of the German Navy for a stateof-the-art anti-submarine warfare helicopter.
Airbus Helicopters also introduced the first US-built H125
military configurations, known as AH-125 and MH-125 Ares,
to the Airbus range of military helicopters. These combatcapable aircraft will feature militarised options that meet theneeds of military and parapublic allies and partners aroundthe world. The AH-125 Ares will be configured as the armed
variant of the helicopter with a new addition of a flexible weapons
capability, while the MH-125 Ares will be configured as a multirole helicopter capable of a wide range of operations.
Airbus Helicopters achieved a major milestone with thedevelopment of the VSR700 in October 2023 by testing the
SDAM (Système de Drone Aérien Marine / Naval Aerial Drone
System) from the French Navy multi-mission frigate Provence,in partnership with Naval Group, the French Navy, and the
DGA (Direction générale de l’armement). These sea trials werearranged to demonstrate the system’s high performance from an
operational warship and the SDAM’s capabilities for surveillance
and intelligence missions. This was the final milestone in thederisking study for the SDAM programme that was awarded to
Airbus Helicopters and Naval Group by the DGA. The project
also involves French Small and medium-sized enterprises like
Hélicoptères Guimbal and Diades, contributing to the creationof a local naval UAS industry in France.
Airbus Helicopters continued to make inroads on its
decarbonisation roadmap which is based on a threefold
approach using SAF, hybridisation, and electrification. The
Company continued to lead a SAF user group for its helicopter
operators and industry partners as well as increasing the useof SAF for its own development test flights, training, deliveries
and ferry flights to 10%. In June 2023, an H125 was the firsthelicopter in China to fly with SAF (40%), marking an importantmilestone in the development of low-carbon aviation in Chinese
aeronautics.
In 2023, the company continued to develop its FlightLabecosystem, which enables more rapid testing of newtechnologies that could later equip Airbus’ current helicopter
range, and even more disruptive ones for future fixed-wing
aircraft or (e)VTOL platforms. The DisruptiveLab that was
unveiled at the Airbus Summit in December 2022 performed

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its first flight in January 2023 and went on to complete its firstround of flight testing. The DisruptiveLab will evaluate a new
aerodynamic architecture intended to reduce fuel consumption,
as well as pursuing the implementation of hybridisation with afully parallel hybrid propulsion system that enables its battery to
be recharged in-flight. The new architecture of the DisruptiveLabfeatures an aerodynamic aluminium and composite fuselage,
specifically designed to reduce drag and thus reduce fuelconsumption. The blades are integrated into the rotor in a waythat allows for a more compact rotor head which reduces dragand therefore improves energy efficiency while lowering theperceived noise level. Its lighter rear fuselage incorporates a
streamlined Fenestron tail rotor that also contributes to improved
performance.
In September 2023, the Company unveiled the PioneerLab, its
new twin-engine technology demonstrator based on the H145
platform which is partially co-funded by the BMWK, the Federal
German Ministry for Economic Affairs and Climate Actions
through its national research programme LuFo. It focuses on
testing technologies that reduce helicopter emissions, increaseautonomy and integrate bio-based materials. The PioneerLabaims to demonstrate a fuel reduction of up to 30% compared to aconventional H145, thanks to a hybrid electric propulsion system
and aerodynamic improvements. Aboard the demonstrator,
Airbus Helicopters will also flight-test structural components
made from bio-based and recycled materials, which aim to
reduce the environmental footprint across the entire aircraft
lifecycle. The Company intends to produce the new parts using
processes that reduce material and energy consumption andimprove recyclability. Further research activities will include theintegration of the latest digital technologies into the aircraft’s
flight control system and associated sensors to increaseautonomy and safety during critical flight phases such as takeoff and landing.
In 2023, the Company also began assembling its fully electric
vertical take-off and landing prototype, CityAirbus NextGen andended the year by successfully performing the power-on of thevehicle. Ensuring the success of Advanced Air Mobility (AAM)
requires more than just the development of a platform, which is
why Airbus is taking a holistic approach to the development of its
AAM ambition by working on the platform, while also developing
the ecosystem thanks to partnerships all over the world, andsimultaneously focusing on key missions that will demonstrate
the added value of AAM, helping to secure public acceptance.
Thanks to Bavaria-based Air Mobility Initiative (AMI), a designteam at Munich Airport has been working with Airbus on the first
designs of a vertiport, while two collaborative projects have been
analysing the integration of vertiports in different environments.
In March 2023, the Company announced a partnership with theNorwegian Air Ambulance Foundation to develop CityAirbus
NextGen’s future missions for medical services in Norway. The
parties will jointly measure the added value of electric vertical
take-off and landing (eVTOL) aircraft for a selection of medical
services use cases across the country to integrate the operational
requirements directly into the configuration of Airbus’ eVTOL.

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, including fleet availability.
The Company celebrated important fleet milestones thisyear, such as the 1,500th H135 delivery to ADAC Luftrettung,1. Information on the Company’s Activities
1.1 Presentation of the Company

the 500th NH90 delivery to the French Army, the French Navy’s
H160 Interim Fleet hitting 1000 flight hours in the first year, theSpanish Army celebrating 10,000 flight hours of their NH90
fleet, the H175 reaching 200,000 flight hours and the H135
and H145 global fleet both achieving the 7 million flight hour
milestone.
The company also reached a number of certification milestones
in 2023 with the certification of the H175 by the Civil Aviation
Administration of China (CAAC) and the H160 received its typecertificate from the Federal Aviation Administration (FAA), theTransport Canada Civil Aviation (TCCA), and the Civil Aviation
Authority of Malaysia (CAAM).
Airbus Helicopters has made significant effort and investment
in addressing the supply chain situation that has been severely
affected in succession by COVID, the consequences of
Russia’s invasion of Ukraine, the energy crisis and economic
factors including elevated inflation rates. In this context, Airbus
Helicopters has faced difficulties in meeting customers’ spareparts and repair needs, due to demand having grown much
faster than predicted based on flight activity.
Airbus Helicopters has significantly increased its working
capital investments on spares and MRO parts. The Company
has also invested in dual sources of supply and in helicopter
buy-backs. The dismantling of complete helicopters enables
the Company to access parts which are in short supply,
especially for dynamic components. It also provided solutions
for obsolescence and scarce parts.
In addition, the company is constantly investing in productimprovement, both in terms of safety, innovation, andcompetitiveness. This includes investments targeted at making
its helicopters more reliable, with a reduced maintenanceworkload and with lower Direct Maintenance Costs (“DMC”).
Many of these improvements are discussed and then prioritisedwith customers in the frame of various forums such as Customer
Focus Groups and Reliability Data Groups.
Global Support contracts and the HCare offering continued toprove popular in 2023 both with civil and military customers.
There are around 2,650 helicopters currently enrolled withby-the-hour contracts. The Spanish Army Airmobile Force(FAMET) signed an HCare In-Service contract covering 32
AS532 helicopters based on the repair-by-the-hour concept.
This contract allows FAMET to have an extended visibilityon the fleet’s performance and maintainability. Similarly, theSpanish Air Force and Spanish Navy signed a HCare InService contract to cover 18 H135 helicopters, increasing parts
availability for optimal aircraft availability. These are the first everby-the-hour contracts signed by the Spanish Armed Forces.
On the civil side, the Western Australia Police contracted apart-by-the-hour commitment covering two five-bladed H145s
for law enforcement operations, and HBG Group signed aPart Availability contract for 24 helicopters located on fourcontinents.
Airbus Helicopters continues to develop solutions for its legacy
fleet. In 2023, the Company presented new upgrades for its
H120 fleet, a year after the launch of the new services offering“HCare Classics”.
The company continued to make inroads on helicopter
connectivity and digital services in order to provide an endto-end ecosystem through easy-to-use digital solutions
fully integrated to Airbus Helicopters systems. These digital

1

solutions leverage data generated by helicopter systems, suchas flight data recorders and avionics systems, or maintenancesoftware and applications used to manage fleets. The aim of theCompany’s Connected Services offering is to enable more flight
hours in a simple manner and to enhance safety and ultimately
better support our customers in their operations.

Aviation Safety
Airbus Helicopters’ chief priority is to enhance aviation safety
for the thousands of men and women around the world who
are transported in its aircraft every day. Airbus Helicopters’
ambition is to further reduce the accident rate of the Airbus
helicopter fleet in service and be a leader in aviation 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; and–– continue to mature the company-wide global aviation Safety
Management System (SMS).
This commitment to aviation safety is also reflected across all
the internal activities related to the lifecycle of a helicopter, witha focus on meeting (and exceeding where possible) industry
quality and safety standards. All this is based on continuously
enhancing the strong safety culture in the Company.
To continue raising aviation safety awareness, Airbus Helicoptersinaugurated a dedicated Aviation Safety Centre in March 2023
at the Marignane site in France. This is the first centre that will
be replicated across other Airbus Helicopters sites around theworld. The centre is divided into several zones, four of whichhost the digital modules that form the core of the system. These
digital modules cover four major themes for Aviation Safety: air
accidents, organisational and human factors, FODs (Foreign
Object Damage, i.e. foreign bodies that can cause damage)and risk management.
The objective is that all employees, including apprentices,
temporary workers and on-site subcontractors in Marignane –about 10,000 people – are trained in the Aviation Safety Centre.
The Company also aims to host customers and suppliers at thecentre to further demonstrate Airbus Helicopters’ commitment
to a safe flying culture.

Market Drivers
The global helicopter market is demonstrating continued
signs of recovering to pre-COVID-19 levels, despite continued
geopolitical instabilities and economic volatility. Airbus
Helicopters’ preliminary market data indicates that worldwide
helicopter bookings for 2023, counting both the Civil &Parabublic (C&P) and Military markets, stood at over 1,150 units.
This, compared to 1,394 in 2019 (prior to the pandemic) and
751 in 2020 (the low point during the pandemic).
The preliminary 2023 Civil & Parapublic Market figures indicate
a slight overall increase of 1% in units sold and 7% in revenue
since 2022. Significant demand increase for Super Mediums,
Light Twin and Medium helicopters is driven by continuing signsof a resurgence of the energy segment and by the demand of
Emergency Medical Services (EMS). Contrary to these growth
segments, the demand for Intermediate Single helicoptersdecreased. This decrease was driven by the slow down ofPrivate and Business Aviation and Commercial Passenger
Transportation. Overall, Airbus Helicopters continues to lead the

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C&P market, securing approximately 48% market share in units
and 50% in value, driven by Airbus Helicopters positioning in
Aerial Work, Private and Business Aviation, and Public Services.
The preliminary 2023 Military Market figures indicate a significant
military market increase in value of more than 50% versus
2022. The increase in value is driven by Specialised and Very
Heavy class helicopter acquisitions (Apache, CH47 Chinook &CH53) which together represent approximately 70% of the value
booked. Such bookings were largely made through Governmentto-Government contracts.
Over the next 10 years, according to market forecasts produced
by Airbus Helicopters, around 6,900 Civil & Parapublic helicoptersand 6,800 Military helicopters are expected to be delivered
globally over this period.
Within the Civil & Parapublic Market (6,900 units over 10 years),almost 50% of the deliveries in units are expected to be Single
engine helicopters, but Twin engine helicopters are anticipated
to represent more than 80% of the value to be delivered. For theIntermediate singles, the dominant customer types are expected
to be Private & Business Aviation (PBA), Aerial Work andCommercial Air Transport. Whereas in the Light Twin segment,
Helicopter Emergency Medical Services (HEMS) continue to be
the dominant customer type, followed by Public Services andPBA. The continued resurgence of the energy market remains
key for sales of the super medium class, as are Public Services
for the Heavy helicopter market class.
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
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East, while other regions like Asia Pacific or Eastern Europe are
expected to continue to grow. Within the Military Market (6,800
units over 10 years), approximately 33% of market sales in units
are expected to come from the Heavy helicopter class, with asignificant dominance in this sector coming from forces requiring
Heavy Lift capabilities for troop and logistics transportation.
For the remainder of the market, the combination of Light &Intermediate helicopters is expected to account for over 30%
and Specialised Attack helicopters around 20%.

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 in aless dynamic market, with approximately 48% in units booked
in 2023 (50% in value), followed by Bell and Leonardo withapproximately 17% and 15%, respectively.
Airbus Helicopters’ main competitors in the military sector remain
Boeing, Sikorsky and Russian Helicopters. In 2023 Boeing was
dominant in the Military market, securing approximately 38% ofunits sold, while Airbus Helicopters secured approximately 16%.

Customers
More than 3,350 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 approximately 54% of the worldwide market share-basedon deliveries in 2023, the versatility and reliability of Airbus
Helicopters products have made them the preferred choiceof the most prominent civil and parapublic customers (turbine
helicopters of more than five seats).

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

1

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”

Public Services(1), Military Utility & Armed Reconnaissance,
Private & Business Aviation, Commercial Pax Transport & Aerial Work

H130

Commercial Pax Transport & Multipurpose, Emergency Medical,
Tourism, Private & Business Aviation

Light Twin Engine
H135 / H135M
H145 / LUH (UH-72) / H145M

Private & Business Aviation, Military Utility & Armed Reconnaissance,
Emergency Medical, Public Services(1)Private & Business Aviation, Military Utility, Emergency Medical, Public Services(1)Medium and Super Medium
H160 / H160M

Oil & Gas, Public Services(1), Private & Business Aviation, Emergency Medical,
Military Utility & Transport, Special Operations, Naval

H175 / H175M

Oil & Gas, SAR, Public Services(1), Private & Business Aviation, Emergency Medical,
Military Utility & Transport, Special Operations

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

Civil Utility (2), Military Transport / SAR, Oil & Gas
SAR, Combat-SAR, Military Transport, Oil & Gas, Private & Business Aviation, 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 single-engine,
light twin-engine, medium and medium-heavy helicopters, which
are adaptable to all mission types based on customer needs. To
maintain and strengthen its competitive edge in the civil sector,
Airbus Helicopters invests in R&D investments, notably:–– certification of the H160 by EASA in July 2020;–– improvement of the existing range (i.e. H145 certified by EASA
and FAA in 2020 or the increased H125 performance certified
in 2021 by EASA and FAA) in the field of performances andsafety in order to meet customer’s requirements;–– certification of the H160 by FAA in June 2023;–– certification of the H175 by CAAC in July 2023;–– 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
partners in NATO Helicopter Industries (NHI) in direct proportion
to their countries’ expressed procurement commitments. Airbus
Helicopters’ share of NHI is 62.5%. By the end of 2023 morethan 500 NH90 were in service.
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
generation of weapons (anti tank / air to ground missile, laser
guided rockets) in order to address future requirements of theFrench and Spanish armies. By the end of 2023 166 Tigers
were in service.
Airbus is also a major contractor to the US Army, having beenchosen to supply the service’s UH-72A & UH-72B Lakota
helicopters (more than 470 in service by the end of 2023).

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Customer Services
With more than 3,200 operators in over 150 countries, Airbus
Helicopters has a large fleet of more than 12,300 in-service
rotorcraft to support. As a result, customer service activities tosupport this large fleet generated approximately 47% of Airbus
Helicopters’ revenues for 2023.
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
The roll-out of the new industrial model for Operations basedon site specialisation, the introduction of an improved industrial
architecture and the progressive deployment of flexible lines isalmost complete.
The last internal transfer of activity in the context of the site
specialisation will be achieved in 2024 with the remaining
transfer to Paris Le Bourget. By concentrating the production
sites in specific helicopter sections or technologies, we expect
the competitiveness of our operations will be boosted andoverall performance significantly increased, while improving
the factories’ resilience to market fluctuations through thecontribution of each site to the entire product range.
Alongside site specialisation, the introduction of an improved
industrial architecture is being deployed, with major subassemblies produced, assembled and tested in parallel, thus
shortening the industrial cycle. The reduction of the lead-time, inparticular in the final assembly lines, will decrease the inventories
and shorten the delivery time to our customers. Also, the ability
to adapt quickly to market evolution is key. The flexibility ofthe production lines to assemble different products is being
developed so that the industrial system can be adjusted in a
rapid manner to changing market requirements.
A further key element of the Operations strategy is theenhancement of the logistic set-up supporting the new industrial
model. 2024 will be marked by the entry into service of the “onelog” hub in Albacete, Spain. The hub will enable the rationalisationof the logistic flows, moving from a “point to point” concept withspread flows, to a global logistics approach that will contributeto the competitiveness of operations.

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In parallel to the new improved industrial set-up, the Operationsorganisation is increasing the focus on quality and operational
performance in key helicopter components through theCentres of Excellence, for example Rotors and Transmissions.
The Centres of Excellence will unite all departments in
the Helicopters organisation – from Engineering, throughProcurement & Supply chain, Quality and Production – to deliver
best in class safety, quality and performance.
The global industrial footprint of Airbus Helicopters continues tobe developed to reduce our product cost in the “make” perimeterand provide opportunities for the rationalisation of our supply
base. While keeping more complex activities in the main sites inFrance, Germany and Spain, simpler work packages are allocatedto the Divisions’ sites in “best cost countries”. In 2023, the facility
in Querétaro, Mexico, specialised in aluminium machined parts,
increased their workload. Additionally, the Division’s new facility
in Gyula, Hungary, inaugurated in 2022 and specialised in hard
metals machining, delivered its first parts in 2023.
Simultaneously to our internal industrial system competitiveness,
the Operations strategy keeps a strong focus on the extended
enterprise. Since the pandemic, supply chain monitoring
and risk management has been strengthened, increasing
the capacity to anticipate and mitigate potential disruptions
and secure business continuity. The sourcing strategy is
being implemented, reshaping our supply base to secure its
current and future industrial performance, competitivenessand maturity, as an essential part of the overall Helicoptersindustrial ecosystem.
Reducing the environmental footprint of the industrial activities isa paramount axis of the Operations strategy. Numerous projects
supported by important investments are being developed in
all the sites, focusing on the reduction of our CO 2 and VOCemissions, energy and water consumption and also in thegeneration of waste.
Finally, the Operations strategy is paying special attention
to preparing the future of the factories, industrial processes
and systems. In particular, the ongoing digital transformation
programmes will redefine the industrialisation and production of
our helicopters, enabling a major reduction of our industrialisation
cycles, raising our efficiency, setting a new standard of quality
while safeguarding our Cybersecurity.

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1.1.4

1

Defence and Space

Airbus Defence and Space is a trusted partner to commercial
and government customers worldwide, providing products andservices that ensure mission success in the air, land, sea, spaceand cyber domains:–– Air Power designs, develops, delivers and supports manned
and unmanned military air systems and services. It is theleading fixed-wing military aircraft supplier in Europe, andone of the global leaders in combat, mission, transport andtanker aircraft. Key products include the Eurofighter Typhoon,
the A400M, the A330 Multi Role Tanker Transport (“MRTT”),
the C295 and the Eurodrone. It also focuses on the future of
air power, leading the development of the system-of-systems
environment, of which the Future Combat Air System (“FCAS”)
is a cornerstone;–– 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 andcommercial customers. It also manufactures orbital andspace exploration systems, including human-rated modules.
Space transportation capabilities (comprising launchers andservices) are offered via ArianeGroup, a 50/50 Airbus-Safran
joint venture;–– Connected Intelligence creates specific solutions for
defence, governmental, civil and commercial customers underfour main Programme Units: Integrated Space Solutions (thecurrent working name for our space-related solutions), Public
Safety and Security, Cyber and Defence Digital. It provides
trusted intelligence and secure connectivity for mission andbusiness-critical communications, from radio to broadband
and mobile, on land, at sea and in the air.
On 1 January 2024, Airbus Defence and Space implemented
a new organisational structure. It includes the merger of theMilitary Air Systems (MiAS) and FCAS Programme Lines into the
new Air Power organisation, covering all air defence capabilities,
and incorporation of the operational part of Engineering andOperations activities in business lines. The change results in
a new simplified organisational structure consisting of threebusiness lines: Air Power (merging of MiAS and FCAS), Space
Systems and Connected Intelligence, supported by a transversal
Operations function. The goal of this new organisational setup
is to create business lines with clear end-to-end accountability.

Strategy
The strategic purpose of Airbus Defence and Space is to support
our customers in safeguarding and protecting sovereignty,
preventing crises, protecting lives and restoring damaged
communities and ecosystems, providing safety and security
and respecting the highest standards of human rights.
To achieve this, the Company is applying its strategy acrossthree main segments:–– 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 FCAS, transport and special mission aircraft, among
others. Airbus Defence and Space is also working to shapeand address a future secure, upgradeable, and dynamic

network along with Command and Control architecture
requirements, while continuing to evolve existing platforms
and capabilities for long term competitiveness (e.g.
Eurofighter Typhoon, A330 MRTT, A400M, C-295, aircraftin service support);–– Space Systems: As one of Europe’s space leaders, Airbus
Defence and Space will continue to create more competitive
products, working with European governments and institutions
to ensure the long-term health of the entire European spaceindustrial base. The Company will evolve its product portfolio(i.e. equipment, satellites and infrastructure) and take a targeted
approach to international expansion, with key successes
already achieved in the US, combined with a growing local
footprint. 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. It is also actively working on sustainability solutions,such as climate change monitoring and the removal of debris
from the space environment. For the increasing focus on
defence in Space, the Company is aiming to provide nations
with technologies for information superiority and in-space
operations;–– Connected Intelligence: supports data-driven decisionmaking for our defence, public safety, and geospatial
customers. The Business Line provides satellite imagery,
intelligence capabilities, and secure connectivity acrossspace, land, air, and maritime domains. The focus is on“information superiority” to enhance mission effectiveness.
Connected Intelligence aims to be a centre of competence,
offering market-differentiating digital elements and services
while serving as a direct sales channel for Airbus Defence andSpace’s military and space platforms.
Globally, Airbus Defence and Space intends to leverage its
existing products and services, innovate in new offerings, andstrike selected strategic partnerships in order to strengthen its
position in the US and other targeted international markets.
The Company is firmly committed to conducting its businessbased on responsible ethical standards, and in compliance withall applicable laws and regulations. This includes the delivery ofdefence products in accordance with export control laws, which
are made in full transparency and alignment with authorities
and relevant stakeholders. Suppliers must also ensure that
their business practices are in compliance with export control
laws and regulations including the US, EU and any applicablenational regulations, as well as compliance with sanctions andembargoes legislation. Furthermore, suppliers are required
to provide truthful and accurate export control classificationand information and obtain export control licences. Humanrights aspects are already included in the licensing process of
the authorities, as well as in the Company’s internal approval
processes. Additionally, human rights has been prioritised as
one of the key commitments of the Airbus sustainability strategy
and plays a key role in how Airbus Defence and Space conducts
its operations. The Company has developed a human rights
policy and within the defence portfolio, a multi-functional andcross-divisional team is in charge of reviewing the integrationof risk-based human rights due diligence through existingprocesses and tools.

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Airbus Defence and Space is not involved in the development,
production or distribution of “controversial weapons” as listed
within Annex I of the Commission Delegated Regulation (EU)2022/1288 and it has in place detailed policies and procedures
to undertake due diligence on the sale of defence products. For
further information, see “1.2.10 - Human Rights”.

MarketAirbus Defence and Space is active in governmental, institutionaland commercial markets. As a general trend, defence budgets
are forecast to grow globally, triggered by geopolitical shifts,
heightened security risks, intensity of natural disasters, initiatives
supporting strategic autonomy and continuous developmentof domestic defence industries. Recent examples of thesedevelopments in Europe include the Permanent Structured
Cooperation (PESCO) projects; Future Medium-Size Tactical
Cargo (FMTC) and Strategic Air Transport For Outsized Cargo(SATOC), both supported by the European Defence Agency(EDA); the calls for proposal by the European Defence Fund(“EDF”); the implementation of the Eurodrone contract, signedwith OCCAR (Organisation Conjointe de Coopération en
Matière d’Armement); and the FCAS Demonstrator Phase 1B
contract. In the space domain, Airbus has high ambitions toparticipate in Europe’s Low Earth Orbit (LEO) constellation,
known as Infrastructure for Resilience, Interconnectivity andSecurity by Satellite (“IRIS 2”) programme, planned to startin 2024. Several European governments are updating theirsecure satcom infrastructure with major programmes such
as Skynet Narrow- and Wideband already running in the UK.
The EU-SST (Space Surveillance and Tracking) programme
addresses European operational capability that safeguards thespace assets of the EU and member states. In parallel, in thespace exploration segment, Argonaut (Europe’s large logistic
lander) is a major element approved within the next phaseof Terrae Novae (ESA’s new space exploration programme).
Together, these initiatives provide sales opportunities in Europe
and beyond.

There is also notable momentum in Europe for cooperation inlarge UAS programmes as demonstrated by the Eurodrone
contract signature between Airbus Defence and Space asindustry prime (in partnership with Leonardo and Dassault),
and OCCAR on behalf of the nations (Germany, France, Spainand Italy). This will lead to the delivery of 20 Eurodrone systems,
along with an initial five-year package of in-service support.
Eurodrone is an indispensable capability to facilitate international
conflict prevention and crisis management during all phases ofoperation – especially in the field of Intelligence, Surveillance,
Target Acquisition and Reconnaissance (ISTAR).
Beyond the Eurodrone, Airbus’ unmanned aerial systems help
solve challenges for commercial, government and militarycustomers alike. Institutional and government customers
are recognising the benefits of UAS for public services. An
increasing number of applications require UAS solutions in areas
such as law enforcement, fire-fighting, humanitarian assistanceand disaster relief, border protection or emergency services.
Civil and enterprise customer interest for UAS continues togrow, with the main focus being on smaller and tactical UAS.

Market access outside the home countries may be subject torestrictions or preconditions such as national content, local
industrial participation or the provision of export licences.
Nevertheless, Airbus Defence and Space is well-placed tobenefit from global growth in defence expenditure.

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. The business encompasses the full set of services
ranging from logistics, Maintenance, Repair and Overhaul(“MRO”) and data analytics offers, to traditional leasing into
complete aircraft-as-a-service flight operations.

Air Power

Competitors

Customers

Customer relationships in this segment are characterised bytheir long-term, strategic nature and long decision-making
cycles. Once a contract is signed, its life span, including theservices business, often lasts for decades. Beyond a strong
foothold in home countries, the Company’s customer baseis increasingly global, in particular due to the success of theA330 MRTT and C295 programmes.

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, and theability to develop and implement complex integrated systemarchitectures. The required skills for overall systems integration
into an aircraft are extensive and the number of players in theworld market is rather limited. In particular, dedicated mission
aircraft such as the heavy tankers, are derived from existing
aircraft platforms. Adapting them requires thorough knowledge ofthe basic airframe, which generally only the aircraft manufacturer
possesses, along with knowledge of systems architecture andintegration.

The volatile, uncertain, complex and ambiguous geopoliticalsituation is gradually leading to a greater importance of defencein Europe. A clear signal in this direction was the signature of
FCAS Phase 1A in early 2020 by France and Germany, with

The main competitors in the military transport and mission
aircraft market include Boeing, Dassault Aviation, Embraer,
Leonardo, Northrop Grumman, Saab, Antonov, and the United
Aircraft Corporation.

The Air Power Business Line with its combat aircraft, militarytransport mission aircraft and unmanned aerial systems (“UAS”),
along with related services, mainly supplies the public sector,
specifically armed forces.

54

Spain joining later that year. Over the past four years, FCAS
has been progressing with the execution and achievementof the Joint Concept Study and the Demonstrator Phase 1A
which lead to the signature of the Common Operational
Requirements Document (“CORD”) by the three Air Forcesin September 2021. The FCAS Demonstrator Phase 1B was
signed on 16 December 2022. This phase covers the work on
the demonstrator and its components for about three and ahalf years. There is good cooperation between FCAS teams
from all industry partners (i.e. Dassault Aviation, Indra, Eumet,
others). Phase 2 would be the next step following Phase 1B,
with flight demonstration being targeted towards the end of
the decade. Airbus military aircraft such as A400M, MRTT,Eurofighter and other manned and unmanned platforms willplay key roles in the FCAS ecosystem.

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1.1 Presentation of the Company

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.
On Combat, Airbus activities take place through the contribution
to the Eurofighter Typhoon, jointly with BAE Systems andLeonardo. The main competitors in the segment include Boeing,
Dassault Aviation, Lockheed Martin, Saab and UAC.
With regards to UAS platforms, Israeli and US firms are wellestablished, with European and Chinese companies gaining in
relevance. Major competitors include AeroVironment, Baykar
Technology, Boeing, Elbit Systems, General Atomics, Israel
Aerospace Industries, Leonardo, Northrop Grumman andTurkish Aerospace Industries. The market is also seeing the
emergence of new, smaller companies worldwide, addressing
specific and/or national requirements. There is room and needfor synergies and partnerships between smaller and larger UAS
companies.

Market Trends
The sale of aircraft is expected to remain stable in the transportand special mission aircraft segments and could grow for
the heavy transport segment, where the A400M occupies a
unique position. In combat, new collaborative programmes areunderway for the development of new sixth-generation fighters.
After-sales services are an important business for Air Power andare continuously growing in line with the deliveries of A400M
and A330 MRTT, on top of the existing robust revenue stream
associated with Eurofighter and Tornado in-service support.
On the unmanned aerial systems front, while defence will remain
the largest sector, civil and institutional markets are growing
steadily, especially in the smaller UAS tactical categories.
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.

Products and services
FCAS – Future Combat Air System. The FCAS will be a systemof systems combining a manned New Generation Fighter teamingwith unmanned Remote Carriers, collaborating with upgradedexisting and new platforms (e.g. Eurofighter, A400M, MRTT,
Eurodrone, etc.) orchestrated by a Multi-Domain Combat Cloud(“MDCC”).
It will be an incremental journey to allow air forces and industry
to tackle hand in hand the doctrinal and technological challenges
lying ahead. As the largest and most ambitious European
defence development for decades to come, FCAS will be key
to Europe’s operational, technological and industrial sovereignty.
FCAS will foster development of new technologies such as
Artificial Intelligence (“AI”), cyber, cloud, and drones.
It will deliver increasing operational effects by leveraging thecollaborative capabilities of all connected platforms acrossdomains (air, land sea, space and cyber) bringing the next levelof air power. FCAS will accentuate and unify multiple areas ofAirbus Defence and Space portfolio and products.

1

A400M – Heavy military transport. The A400M is the mostcapable new generation airlifter on the market today, aiming tomeet the needs of the armed forces worldwide and potential
operators for military, humanitarian and peacekeeping missions
in the twenty-first century. The A400M can perform the job of
three different types of military transport and tanker aircraft byproviding 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.
A total of 178 aircraft have been ordered so far. This includes
the seven launch customer nations, Belgium, France, Germany,
Luxembourg, Spain, Turkey, the UK, as well as three export
customers, Malaysia, Kazakhstan (two aircraft ordered in 2021)
and Indonesia (two aircraft ordered in 2021, with contract
enforcement in 2022). Additionally, Indonesia signed a letter ofintent in 2021 with an option for four additional units. Further
interest exists from various regions worldwide, including Asia,
the Middle East and Latin America.
Type Certificate and Initial Operating Clearance were achievedin 2013. Since then, 123 units have been delivered to eightnations as of 31 December 2023. The A400M has already been
deployed in operations since 2014, accumulating more than
177,000 flight hours in service. In 2019, a contract amendment
was signed with launch customers on the Global Rebaselining of
the A400M programme, under which all parties agreed to update
the production 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).
The aircraft is designed to disrupt the difference between
strategic and tactical transport by offering both capabilities inone. This saves both time and costs as customers can fly a longrange strategic aircraft into a tactical zone of operation.
A330 MRTT – Multi-role tanker transport. The A330 MRTT, aderivative of the Airbus A330-200 family, offers military strategic
air transport as well as air-to-air refuelling capabilities. Its large
fuel tank capacity (111t), a benefit of the design of the commercial
platform, allows it to dispense fuel in flight to many receiveraircraft 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 the possibility to transport up to
27 standard civil LD3 containers, or up to eight 436L military
pallets as well as the capacity to transport up to 300 troops
in the upper deck cabin compartment, with the high level ofcomfort of a civil airliner.
The A330 MRTT is equipped with state of the art refuellingsystems, including an Aerial Refuelling Boom System (ARBS)
and under-wing refuelling pods. It is the first and so far only
aircraft in the world to perform automatic air-to-air refuelling (A3R)
with A boom. At the end of 2023, 78 A330 MRTT have beenordered by 15 national operators (more than 94% market shareover the past ten years, excluding the US), with 59 platforms
already delivered and operating worldwide, accumulating morethan 250,000 flight hours in operation.
In 2023, the Government of Canada awarded Airbus Defence
and Space a contract for four newly-built Airbus A330 MRTT
and for the conversion of five used A330-200s.

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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%), BAE Systems (33%) and Leonardo(21%). With regards 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 and 19.5% for Leonardo.
Airbus Defence and Space develops and manufactures thecentre fuselage and the right wing and leading edge slats for all
aircraft, and is in charge of final assembly of aircraft ordered by
the German, Spanish and Austrian air forces.
At the end of 2023, 680 Eurofighter Typhoon aircraft had beenordered by nine customers (UK, Germany, Italy, Spain, Austria,
Saudi Arabia, Oman, Kuwait and Qatar). This includes the orderof 38 aircraft from Germany in November 2020, and more
recently the order of 20 aircraft from Spain in June 2022 toreplace the ageing fleet of EF-18A Hornets. By the end of 2023
a total of 603 aircraft were delivered. Export opportunities arebeing actively developed together with the other shareholdersof 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 anddelivery of personnel and cargo as well as medical evacuations.
The aircraft are deployed in demanding operational environments
and have been used for humanitarian missions. The aircraft arealso offered as a dedicated mission aircraft with configurations
beyond the traditional airlifter version, for example maritime
surveillance and anti-submarine warfare, airborne early warningand control, firefighting and Intelligence, Surveillance andReconnaissance (“ISR”), among other missions. In service formore than 20 years, this family of aircraft has proven to be robust,reliable, high-performing, efficient, flexible, easy to operate inany environment, and with low operating costs. 299 orders havebeen recorded for the C295 by 41 operators at the end of 2023,
including the historical order by the Indian Air Force in 2021 for
56 C295 to replace their legacy fleet. The first Indian Air Forceaircraft was delivered in September 2023.
In 2023, the Spanish Ministry of Defence ordered 16 C295 inmaritime patrol and maritime surveillance configurations.
In the field of UAS platforms, Airbus Defence and Space isactive at both product and service level, supplying robust anddependable solutions for customers across military, commercial
and institutional markets. Solutions span from tactical UAS tostratospheric solar powered High Altitude Platform Station(“HAPS”).
Eurodrone – Medium Altitude Long Endurance Remotely
Piloted Aircraft System (“MALE RPAS”) is the first unmanned
aerial system designed for flight in non-segregated airspace. It
will give Europe its own unparalleled competencies in the field of
UAS, offering advanced strategic performance capabilities. The
characteristics will include mission modularity for ISR missions,guaranteeing European sovereignty.
As a four-nation project, Eurodrone will strengthen European
sovereignty by establishing and expanding an independent
technological base in the field of unmanned aviation.

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The programme between Germany, France, Spain and Italy andunder the management of the international armaments agency,
OCCAR promotes European cooperation in the field of security
and defence and confirms the initiative to increasingly rely on
multinational armament projects. Development, procurement
and operation will be carried out jointly, which saves costs andincreases efficiency.
Eurodrone is designed to become one of the main pillars of any
future combat air system, prepared for real integration into civil
airspace based on minimal restrictions and easy transportability
due to its modular design. The design will offer multi-mission
capabilities and significant growth potential, for homeland
operations, Intelligence, Surveillance, Target Acquisition, andReconnaissance (“ISTAR”) and armed ISTAR, which can be
conducted with full operational sovereignty.
In 2023, Japan joined the Eurodrone programme as an observer.
Zephyr – solar-electric stratospheric HAPS is capable offlying continuously for months at a time, at around 70,000ft,
above weather and conventional air traffic. It remains the only
fixed-wing HAPS to have demonstrated day/night longevity inthe stratosphere. It offers a range of continuous surveillance,
communications and monitoring services for both militaryand civil markets. In January 2023, Airbus HAPS Connectivity
Solutions Ltd, the company behind Zephyr, was rebranded as
AALTO HAPS Ltd, with the aim to seek external partners. Airbus
plans to maintain ownership in AALTO, but will consider outside
investment to help accelerate the Company’s objectives.
SIRTAP – Sistema RPAS Táctico de Altas Prestaciones(or High Performance Remotely Manned System) is the next
generation tactical fixed-wing UAS designed to meet theoperational requirements of armed forces and governmental
agencies around the world, providing an extended endurance
and flexible payload in a range of capabilities adapted to fulfil
ISR missions across military and civil markets. Thanks to
its dual-use, it will be capable of carrying missions such as
maritime surveillance, search and rescue, natural disaster relief,
fire fighting support, as well as target identification, damage
evaluation operations, ISTAR missions and convoy protection,
among others.
Next generation air superiority programmes such as FCAS willfeature strong UAS components, spurring the development ofdifferent types of Remote Carriers, and leveraging MannedUnmanned Teaming (“MUM-T”) technologies.
In 2023, Airbus signed a contract with the Spanish Ministry of
Defence for the development and acquisition of nine SIRTAP
systems, each consisting of three unmanned aerial vehicles andone ground control station. Two simulators will also be supplied.
Air Power Services. Airbus Defence and Space offers andprovides various services for and related to military aircraft and
UAS. Throughout the life-time of our aircraft, the Company offers
integrated logistics support, in-service support, maintenanceand upgrades, along with training and flight hour services.
For example, the A330 MRTT contract with the UK Ministryof Defence through the Air Tanker consortium includes theprovision for all necessary infrastructure, training, maintenance,flight management, fleet management and ground services toenable the Royal Air Force to fly air-to-air refuelling and transport
missions worldwide.

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Services support legacy aircraft beyond those types currently in
production at Airbus Defence and Space, conducting upgrade
programmes for aircraft such as the Tornado and NATO’s Airborne
Warning and Control System (“AWACS”). Airbus Defence andSpace provides a broad range of training services for pilots,
engineers, maintenance and air crews. Covering the complete
pilot training path, from initial training through the Airbus Flight
Academy of Europe (“AFAE”), to type and conversion training
through Airbus Defence and Space’s international training
centre and training centres located at customers’ bases, aswell as advanced mission training through GFD (Gesellschaft
für Flugzieldarstellung GmbH), AvDef (Aviation Défense Service)
and Target Systems & Services. Anticipating significant changes
foreseen in the training methods, Airbus Defence and Space
continues to develop the training of the future, enabled by digital,
collective simulation and live virtual constructive technologies.
Airbus Defence and Space maintains a network of MRO centres
strategically located throughout the world for greater proximity
to the customer, for example in Seville, Warsaw or Manchingin Europe, in Mobile, Alabama in the US, or at subsidiaries in
Saudi Arabia or Canada. Supporting more than 1,600 aircraft
worldwide, the contribution of Services continues to grow.
Airbus Defence and Space offers UAS services through Airbus
DS Airborne Solutions GmbH, supporting FRONTEX (theEuropean Border and Coast Guard Agency) for surveillance
operations in the Mediterranean Sea.

Space Systems
Commercial Sector: Telecommunications
Satellites, Space Infrastructure, Launch Services
The commercial telecommunications 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 Technologies and Northrop Grumman in the US, Thales
Alenia Space in France and Italy, and the China Aerospace
Science and Technology Corporation.
The commercial geostationary (“GEO”) telecommunications
satellite market continues to show signs of recovery as GEOcapable manufacturers can leverage the scale of their capabilities
to create very large constellations. Regarding commercial Low
Earth Orbit (“LEO”) telecommunications constellations, thedemand for small satellites remained soft in 2023. The businessmodel remains challenging due to the required high upfront
capital expenditure. In the space domain, Airbus has highambitions to participate in Europe’s LEO constellation, known
as Infrastructure for Resilience, Interconnectivity and Security bySatellite (“IRIS2”) programme, planned to start in 2024.
In January 2024, Airbus announced completion of a deal with
Eutelsat OneWeb to purchase its 50% share of the Airbus
OneWeb Satellites (AOS) joint venture, which built a global highspeed internet constellation of satellites for the OneWeb first
generation constellation. This endeavour led to a full re-thinkof satellite design and manufacturing, to facilitate production atcompetitive costs and on relatively short timelines. The OneWeb
constellation was completed in 2023 with 600+ satellites now inorbit and full global service entry due in 2024. Moving forward,
OneWeb has clear ambitions to create a second generation
constellation. Airbus is now the sole owner of the satellite
manufacturing facility in Merritt Island, Florida, supplying ongoingcommercial & US government contracts.

1

In 2023, Airbus together with Voyager Space announced apioneering joint venture, Starlab Space, which will develop, build,and operate Starlab, a commercial space station planned tosucceed the International Space Station that is due to conclude
operations in 2030. With the Bartolomeo Service, Airbus alsooffers one-stop-shop access to flying payloads in Low-Earth
Orbit on the outside of the International Space Station (“ISS”),
which means easy access to Space for both commercial andinstitutional customers. The first launch is expected in 2024.
The market for commercial launch services continues to evolvewith ongoing competitive pressure. Arianespace (a subsidiary of
ArianeGroup) provides launch services with the Ariane and Vega
launchers. Competitors for launch services include SpaceX,
United Launch Alliance, Rocket Lab (for smaller payloads) andvarious national space agencies. 2023 was a transition year, withlimited European launch capacity. We expect to see a turnaround
beginning in 2024. As announced in November 2023 by theEuropean Space Agency, the first launch of Ariane 6 is currently
targeted between 15 June and 31 July in 2024, subject to final
tests. The last Vega is due to launch and return to flight of Vega-C
is also expected.
The commercial space market also is seeing the rise of large
constellations for global connectivity, with the upcoming
OneWeb second generation, the launch of prototypes for the
Kuiper constellation which is expected to commence service
delivery in the second part of this decade, and other new projects
emerging both in the US and in Europe.

Governmental Sector: Satellites, Space
Infrastructure, Launchers, Deterrence
In the public market for Earth Observation (“EO”), navigationand science satellites, competition in Europe is organised on anational and multinational level, primarily through the European
Space Agency (“ESA”), the European Commission and national
space agencies.
Space Systems remains a major player in the EO segment,
involved in the 12 existing and future Copernicus environment
missions. The Company was awarded a contract by ESA in
2023 for the development of the TRUTHS mission study formeteorological traceability of Earth observation data.
There is also continued export demand for EO systems. Whileno contracts were signed in 2023, at the end of 2022, Airbus
signed a contract with Poland for the provision of two very highresolution S950 Optical satellites and access to Pléiades Neo
imagery beginning from 2023. The export market is expected tocontinue growing over the medium-term driven by the demand
from new governmental operators on top of the replacement ofexisting assets.
Airbus Defence and Space is building on its re-establishedposition on the navigation side, as it continues to work on the
manufacturing of six Galileo second generation satellites for
Europe’s navigation system as well as the EGNOS V3 navigation
overlay system, critical for the aircraft industry.
The space exploration segment comprises scientific missions forsolar system exploration and crewed space systems. Demand
for space exploration systems originates solely from publicly
funded space agencies, in particular from ESA, NASA, and JAXA
(Japan). Such systems are typically built in cooperation withinternational partners.

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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 (“ESM”) for NASA’s Artemis Moonreturn missions, with six modules under contract. In 2022, theOrion spacecraft successfully completed the first full test mission(Artemis I), with a trip around the moon. The Artemis II crewed
mission is set for launch in 2025. 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 an important rolein providing vehicles, platforms and services to support theseambitious endeavours.
Since Russia´s invasion of Ukraine, there is growing attention
to military capabilities in Space. Airbus Defence and Space will
support nations by providing connectivity, information superiority
and in-space operations for defence.
On the military customer side, observation satellite demandhas increased in recent years. There is an increasing demandin the governmental satcom market in France, Germany, Spainand UK, as well as internationally. Within the European Union,
the development of constellations in 2024 and beyond shouldpresent significant opportunities.
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 (lastflight operated in 2023) and Ariane 6 launcher family, responsiblefor designing, manufacturing and marketing of launch services
through its subsidiary, Arianespace. It is also responsible forthe research, design, development, production and support ofmissiles for the French nuclear deterrent force (French Strategic
Oceanic Force). These activities are compliant with the Treaty
on the Non-Proliferation of Nuclear Weapons. The Company’s
reported revenues do not include any revenues relating to these
activities (accounted for using the equity-method) as it does nothave exclusive control of the joint ventures.

Products and Services
Human space flight. Airbus has played an important role inhuman spaceflight, starting with the Spacelab reusable laboratory
flown on the US Space Shuttle, followed by the developmentof the Columbus module and the Automated Transfer Vehicle(ATV) spacecraft for the ISS, and most recently the addition of
the Bartolomeo payload hosting platform, which is company
operated as a service. Airbus’ expertise is also being applied to
the ESM powering Orion. Airbus is the prime contractor to ESA
for the development and manufacturing of six ESMs, the firstof which flew on NASA’s Artemis I mission in November 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 was first to bring a reconfigurable satellite (OneSat
product) to the telecommunications market. The Company hasnine OneSats under contract; three for Inmarsat for the firstof their next generation of geostationary Ka-band satellites,
one for Optus (an Australian operator), two for Intelsat, one for
SkyPerfect JSAT, and, newly signed in 2023, one for Thaicom
and one for an undisclosed customer.

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With regards to its new all-electric and customer oriented
Eurostar Neo platform, manufacturing is ongoing for five satellites
for Thuraya/Yahsat, Eutelsat and Spanish and UK governments.
Observation and scientific / exploration satellites. Airbus
Defence and Space supplies EO satellite systems carrying opticaland radar instruments and ground infrastructures for both civil
and military applications. Customers can derive significant
benefits from the common elements of the Company’s civil
and military observation solutions, which allow the collectionof information for various applications, such as cartography,
weather forecasting, climate monitoring, mineral, energy andwater resource management, as well as military reconnaissanceand surveillance. 2023 saw the launch of the THEOS-2 satellite,
the second Airbus Earth observation satellite for Thailand which
recognises the importance of space technology in serving thecountry.
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 and planetary exploration.
The Company was awarded a contract in 2020 for the Earth
Return Orbiter, the spacecraft that will return the first eversamples from Mars under the NASA-ESA Mars Sample Return
programme. Airbus Defence and Space was also the prime
contractor in the manufacturing of the JUICE spacecraft, ESA’s
next life-tracker inside the Solar System. JUICE was launched in
2023 and is now on an eight year journey to Jupiter where it will
study its icy moons. The Euclid telescope, designed and built
by Airbus, was also launched in 2023 and has already returned
impressive images as part of its mission to better understanddark energy and dark matter.
Navigation satellites. Airbus Defence and Space is prime
contractor for EGNOS V3, the next generation of the European
Satellite Based Augmentation System, planned to provide
the aviation community with advanced Safety of Life services
and new services to maritime and land users. In 2023 Airbus
commenced the manufacture of the first of six satellites for thesecond generation of Galileo, embarking on a new and enhanced
payload that will open new possibilities for the navigation sector.
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, human spaceflightand launchers.
Commercial launchers. ArianeGroup manufactures
launchers and performs research and development for the
Ariane programmes. Member States, through ESA, fundthe development costs for Ariane launchers and associatedtechnology. For almost 20 years Airbus Defence and Space
was the sole prime contractor for the Ariane 5 system which
completed its last flight in 2023. 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 reduces costs andincreases competitiveness. As announced in November 2023
by the European Space Agency, the first launch of Ariane 6

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

1

is currently targeted between 15 June and 31 July in 2024,
subject to the clearance of final tests. In 2023, ArianeGroupmade progress on the development Maia mini launcher –accelerating the maturation and the in-flight validation of reusable
technologies needed to develop the future European family oflaunchers.

Products and Services

French deterrence systems. ArianeGroup, as prime contractor,
holds the contracts with the French State for the submarinelaunched deterrence system family.

Defence Digital provides multi-domain and cyber-resilient
information superiority through real-time ISR data fusion andpredictive analysis for military and governmental customers.
It develops, and delivers the Multi-Domain Combat Cloud,
fostering a culture of proactive digitalisation within Airbus tomeet the defence market demands.

Connected Intelligence
Connected Intelligence activities cover secure space andterrestrial connectivity, data management and intelligence,
military multi domain operations as well as cyber security may
it be for defence, security institutions or commercial customers.
The programme line is divided into four Programme Units:
Defence Digital, Cyber, Integrated Space Solutions (the current
working name for our space-related solutions), and Public Safety
and Security.
Defence Digital is “designed” to be the digital light-housefor our Defence Customers, demanding fully interoperable,
digitised and automated multi-domain solutions for changing
defence conditions. Key users are some Airbus’ home countries:
Germany, France and UK as well as other NATO nations andinternational missions such as NATO AWACS (Airborne Warning& Control System) and NATO AGS (Alliance Ground Surveillance).
Cyber: serves Europe and its allies as the trusted European
cybersecurity provider, as a specialist in cybersecurity for
Defence and Aerospace systems, assets and network andendpoint security. Its mission is to design, develop, integrate anddeploy tailored reliable cybersecurity products and solutions for
defence, governmental, institutional and commercial customers
as well as critical national infrastructure.
The Cyber Programme Unit is the home to the Division’s
core cybersecurity competences and capabilities, with clear
governance to support all business lines of Airbus Defence andSpace.
Integrated Space Solutions (the current working name for our
space-related solutions) is one of the global leaders in providing
trusted Space Solutions, uniting Connected Intelligence’s spacerelated services & capabilities. Its customers are governmental,
institutional, and commercial.
In the Geospatial domain, the Programme Unit offers acomprehensive range of assets from dedicated infrastructure(Direct Receiving stations) to imagery, advanced products suchas mosaics, elevation models, and 3D imagery. The analytics andgeospatial solutions cater to diverse sectors, including defence,
security, intelligence, agriculture, maritime, oil & gas and more.
The Programme Unit extends its expertise in governmental
satellite communications, offering multi-domain (land, sea andair) secure satellite connectivity solutions for national and global
security, notably for the UK, France, Germany and NATO.
Public Safety and Security: Public Safety and Security aims atdelivering critical communications solutions to organisations –governmental and private ones – who are responsible for the
security and the protection of the individuals, population, national
assets and environment.

Defence Digital is a recognised actor in defence intelligenceas well as a system house supplier for securely connected ISR(Intelligence, Surveillance and Reconnaissance), Air Defence
and Land Command and Control solutions.

Airbus Defence and Space has supported the German Air Forcefor over 30 years with our AirC2 (Control and Reporting Centre,
CRC) and Ground-Based Air Defence System. Developed toNATO standards, these solutions ensure interoperability forcollaborative NATO operations. Our real-time ISR, data fusion,and predictive analysis capabilities are actively deployed in NATOmissions and undisclosed European Ministries of Defence.
Cyber: the portfolio encompasses broad expertise in cyberproject management, including crypto and key management
systems, security gateways, network and endpoint protection,
aerospace multi-messaging systems, detection and response
chain, and cyber attack simulation platforms. Having protected
Airbus Defence and Space complex systems and networks forover 30 years, this programme is leveraging the Airbus DNA todevelop products and solutions for customers facing similar
challenges, based on state-of-the-art trusted technologies.
Cyber security is a very dynamic sector and the Company
strategy aims at ensuring the group and its ecosystem benefit
from the best possible protection. The Cyber Programme Unit
consists of Cyber Programmes and Stormshield. Stormshieldprovides standardised solutions for e.g. 20,000 firewalls/year,
composing a range of eight models from entry-level to highrange, thus remaining an arm’s length affiliate due to its specificbusiness model.
Integrated Space Solutions: Integrated Space Solutions is thecurrent working name for our space-related solutions. Its Earth
Observation business manages a fleet of satellites, including radar(TerraSAR-X, TanDEM-X and PAZ) and optical (two Pléiades,
two Pléiades Neo, SPOT 6, Vision 1) satellites. The Company iscommitted to delivering high quality Earth observation services
including satellite imagery to support disaster relief for rescue
operations. All satellite images are accessible on the OneAtlas
platform with both optical & radar imagery available.
In 2023, the Company signed a significant contract with Google
which underscores the quality of Pléiades Neo images.
Integrated Space Solutions provides satellite communications
and connectivity solutions for governments, military, andinternational agencies. Building on the success of the UK’s
Skynet 5 programme, the Programme Unit delivers end-to-end
satcom systems and services for national and global security
customers including France, Germany, UK and NATO. In 2022,
Integrated Space Solutions secured contracts for Ultra HighFrequency (“UHF”) military communications with the European
Ministries of Defence, hosting payloads on EUTELSAT 36D,
launching in 2024.
Public Safety and Security offers advanced mobile
communication and collaboration solutions with the highest
standards of security and reliability to Public Safety organisations
and enterprises.

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

Its portfolio of products and services evolves constantly to meetnotably but not exclusively the requirements of Public Safety,
Defence, Critical Infrastructures and TUI sector (Transport,
Utilities and Industry). It includes infrastructures, networks,
devices, applications, software, and services, based on
the latest technologies (4G/5G), which enhance situationalawareness, improve user experience and safety, and optimise
operational efficiency.
The Agnet solution is based on the latest 4G/5G broadband
technologies and includes voice communication, messaging andmultimedia sharing as well as interoperability with TETRA andTetrapol technologies. Public Safety and Security provides its
customers with infrastructure, networks, terminals, accessories,
applications and services.
In 2023, Public Safety and Security received various awards forthe renewal and upgrade of its installed base all over the world,
notably in Spain with the first phase of the Spica Broadband
Evolution project. In France, Airbus Public Safety and Security
and its partners have started to deliver the Réseau Radio duFutur for the French Ministry of the Interior, which pioneers
the roll-out of broadband technologies for public safety. The
objective of the project is to have a first version in use for the2024 Paris Olympic Games. In Germany, the massive roll-outof the latest generation Tetra solution was initiated as part ofthe mid-life upgrade of the Bosnet VTS network. In addition tothat, several partnerships with mobile network operators for the
distribution of the Agnet solution have been further established,notably with a major player in Latin America and Benelux. Finally,
Public Safety and Security successfully supported the 2023
Rugby World Cup in France, COP28 in UAE as well as several
other major sport and cultural events worldwide.

Operations/Engineering
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
has affiliates and subsidiaries in approximately 40 countries
around the globe.
As part of the new Airbus Defence and Space organisational
structure introduced on 1 January 2024, operational elementsof Engineering and Operations have been integrated in orderto strengthen existing Programme Lines, which should
foster end-to-end accountability within business lines. A
new divisional COO function has also been created to drive
transversal excellence by ensuring common standards areapplied for quality, project management, engineering, design
and industrial processes, methods and tools, and to drive future
cross-domain capabilities and system-of-systems enablers,
as well as all central procurement activities. The COO function
includes an advanced innovation unit that will explore newtechnologies and concepts. Operations and Engineering drive
transversal excellence, ensure adherence and lead innovation,
exploring new technologies and concepts to anticipate thefuture technologies and market needs.

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MBDA
Airbus Defence and Space holds a 37.5% stake in MBDA (ajoint venture with BAE Systems and Leonardo).
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 established presence
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 a portfolio of airborne countermeasures suchas missile warning and 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), theSPEAR 3 missile (Selected Precision Effects at Range Capability3), 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 the twonations, as well as the battlefield engagement Akeron LP missile.
Recent product upgrades also include the Aster Block 1 NT
(New Technology), the air and missile defence systems forFrance and Italy, the Sea Venom / ANL (Anti-Navire Léger)missile for the helicopters of the UK and French navies, as wellas the Enforcer/Akeron MP missile for the battlefield.
Further activities include the preparation of hypersonic anddirect energy applications/systems for future programmessuch as FCAS and GCAP, the production of various aircraft
packages for the Eurofighter Typhoon and Rafale existing
programmes (including ASRAAM, MICA, and Meteor), as well as
the production of ground based air defence packages (including
CAMM, VL MICA and Mistral) and various packages for frigatesand corvettes systems/missiles (including Aster, CAMM, VL
MICA, Marte ER 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).
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, 100% of MaiaSpace, 51%
of Eurockot and 46% of Starsem, providing a complete rangeof launch services with the Ariane, Vega and Rockot launchers.

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

1.1.5

1

Investments

Dassault Aviation
Airbus SE entered into an agreement with the French statepursuant to which Airbus SE:–– grants the French state a right of first offer in case of the saleof all or part of its shareholding in Dassault Aviation; and1.1.6–– commits to consult with the French state prior to making any
decision at any shareholders’ meeting of Dassault Aviation.
Airbus SE holds 10.24% of Dassault Aviation’s share capital and
6.31% of its voting rights.

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
for all corporate insurance activities and related protection
for the Company and is empowered to deal directly with theinsurance and re-insurance markets via the Company’s in-housebroker entity. IRM’s continuous objective in 2023 was to further
implement and improve efficient and appropriate corporate andproject-related 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 andproduct liability. IRM also provides a Group insurance policy
for Supervisory and Managing Board Members and certain
other employees of the Company. The Company follows apolicy of seeking to transfer the insurable risk of the Company
to external insurance markets at reasonable conditions, oncustomised and sufficient terms and limits as provided by theinternational insurance markets. A volatile global corporate
insurance environment remained in 2023 due to economicaland geopolitical situations and the corporate insurers havemaintained their underwriting strategy for large corporations,however, Airbus’ positive outlook and insurance strategy allowed
to differentiate the impact on insurance policies.
The insurance industry and some risk factors 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.

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1. Information on the Company’s Activities
1.1 Presentation 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 are described
below. Other than as described below, there are no material
governmental, legal or arbitration proceedings (including any
such proceedings which are pending or threatened) which may
have or have had in the recent past significant effects on Airbus
SE’s or the Company’s Financial Position or profitability.
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
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.

Investigation by the UK SFO, France’s
PNF, US Departments of State andJustice and Related Commercial Litigation
During 2023, the various proceedings in relation to the final
agreements (“the agreements”) reached with the French
Parquet National Financier (“PNF”), the UK Serious Fraud Office(“SFO”), and the US Department of Justice (“DoJ”) (resolving
the authorities’ investigations into allegations of bribery andcorruption), and the US Department of State (“DoS”) and theDoJ (resolving their investigations into inaccurate and misleading
filings made with the DoS pursuant to the US International Trafficin Arms Regulations (“ITAR”)), were concluded.
The agreements were approved and made public on 31 January
2020. Under their terms, the Company agreed to pay penaltiesof € 3,597,766,766 plus interest and costs to the French, UK and
US authorities. This was recognised in the Company’s 2019accounts, and all penalties have been paid. The settlements witheach 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 could be used for approved remedialcompliance measures.
Under the terms of the Convention judiciaire d’intérêt public(“CJIP”) with the PNF, the Company had an obligation to submit
its compliance programme to targeted audits carried out by
the Agence Française Anticorruption (“AFA”) over a period of
three years.

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Under the terms of the Deferred Prosecution Agreement (“DPA”)
with the SFO, no independent compliance monitor was imposedon the Company in light of the continuing monitorship conductedby the AFA.
Under the terms of the DPA with the DoJ, no independent
compliance monitor was imposed on Airbus under theagreement with the DoJ, but the Company periodically reported
on its continuing compliance enhancement progress during thethree year term of the DPA and carried out further reviews asrequired by the DoJ.
The agreements resulted in the suspension of prosecution for aduration of three years. This deferral period ended on 31 January
2023. On 13 February 2023, the SFO gave notice to the Company
discontinuing the prosecution. On 17 March 2023, the PNF gave
notice of the same with receipt of the Constat de l’extinction del’action publique. On 28 July 2023 the DoJ filed a motion to dismiss
which was granted by the court on 10 August 2023. With receiptof the aforementioned notices, the CJIP with the PNF, the DPA
with the SFO and the DPA with the DoJ were formally concluded.
Under the terms of the Consent Agreement with the DoS, 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
export control compliance officer to monitor the effectivenessof the Company’s export control systems and its compliancewith the ITAR.
As a result of the Company’s decision to redirect export control
compliance resources to ensure compliance with export control
restrictions and international sanctions announced against
Russia, Belarus and certain Russian entities and individuals
following Russia’s invasion of Ukraine on 24 February 2022, theCompany asked the DoS to extend the Consent Agreement anadditional nine months from its original expiration date, and the
DoS granted this extension. On 26 October 2023, the Company
received notice from the DoS of the closure of the Consent
Agreement based on the fulfillment of its terms.
In addition to any pending investigation in other jurisdictions,the factual disclosures made in the course of reaching theagreements may result in the commencement of additional
investigations in other jurisdictions. Such investigations could
also result in (i) civil claims or claims by shareholders against theCompany, (ii) adverse consequences on the Company’s ability
to obtain or continue financing for current or future projects,(iii) limitations on the eligibility of group companies for certain
public sector contracts, and/or (iv) damage to the Company’sbusiness or reputation via negative publicity adversely affecting
the Company’s prospects in the commercial marketplace.
Airbus will continue to cooperate with the authorities in the future
and to enhance its strong Ethics & Compliance programme andculture within the Company.
In the wake of the agreements and settlements described above,
several consultants and other third parties initiated commercial
litigation and arbitration against the Company seeking relief.
The agreements reached with authorities may lead to additionalcommercial litigation and arbitration against the Company and tax
liability in the future, which could have a material impact on the
Financial Statements, business and operations of the Company.

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

1

Securities Litigation

Air France Flight 447 Trial

In August 2021 the Company received notification of two
separate claims and in March 2022 of a third claim, each filed in
the Netherlands purportedly on behalf of Airbus investors. These
claims (the “Dutch claims”) assert that the Company violated
its reporting obligations, allegedly leading to an impact on the
Company’s share price, by failing to adequately inform investors
and providing false or misleading information about its use ofintermediaries and alleged corrupt practices, its related financial
exposure, internal investigations and subsequent measurestaken by the Company, and the related criminal investigations
leading to the Company’s agreements approved on 31 January
2020 with the French PNF, the UK SFO, the US DoJ and the
US DoS.

On 1 June 2009, an A330 operated by Air France as 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 a trial for involuntary manslaughter. The Company’s
appeal to the French Supreme Court was dismissed. Following
a trial in the fourth quarter of 2022, the Paris Criminal Court
announced on 17 April 2023 that all criminal charges against
the Company were dismissed but sustained certain civil liability
claims. On 26 April 2023, the Paris General Prosecutor filed an
appeal of the dismissal of criminal charges against Airbus and
Air France. As a consequence, there will be a full retrial of thematter, which the Company expects will be scheduled to takeplace in 2024 or 2025.

The first Dutch claim was filed with the Amsterdam District Court
in August 2021 by a special purpose vehicle incorporated under
the laws of Guernsey, an assignee purportedly representing
numerous private shareholders and institutional investors,
seeking a declaratory judgment with damages to be assessedin follow on proceedings.
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.
The third Dutch claim was a class action filed in April 2022 against
the Company by a foundation incorporated under the laws of
the Netherlands. In accordance with Dutch procedural law, thetwo Dutch class action claims are treated jointly as one case.
The Dutch claims followed the filing in 2020 of a putative classaction lawsuit in US federal court in the state of New Jersey,
against Airbus SE and members of its current and former
management. The US complaint asserted violations of US
securities laws, alleging false and misleading statements oromissions concerning, among other things, the Company’s
agreements approved on 31 January 2020 with the French
PNF, the UK SFO, the US DoJ and the US DoS as well as theCompany’s historic practices regarding the use of third party
business partners and anti-corruption compliance. The matter
was fully and finally settled on 30 September 2022 in exchange
for a payment in the amount of US$ 5 million without any
acknowledgement of liability.
On 30 August 2023, the first Dutch claim was dismissed on the
merits, with the plaintiff appealing this dismissal on 29 November
2023. On 20 September 2023, the second and third Dutch claims
were dismissed on procedural grounds, which plaintiffs appealedon 19 December 2023. The calendar for appeal proceedings
on both matters extends at least to 2025 and could take longer.
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 judgement or decision unfavourable to theCompany could have a material adverse impact on the Financial
Statements, business and operations of the Company.

Grand Canyon Helicopter Accident
On 10 February 2018, a fatal accident occurred in the Grand
Canyon at a site called Quartermaster in Arizona involving an
EC130 B4 helicopter operated by Papillon Helicopters impacting
the canyon floor and catching fire, leading to five fatalities andtwo severely injured persons. Following the accident, productliability claims were filed in Nevada state court in the US, including
claims by the estate and parents of a deceased passenger andby the injured pilot of the helicopter. On 6 May 2023 the claimof the pilot was settled, with no admission of liability on behalfof the Company. In January 2024, the last remaining claim witha passenger family was settled, with no admission of liability on
behalf of the Company, in the amount of US$ 100 million, shared
between Airbus Helicopters and Papillon Helicopters.

Other Investigations
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.

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1.2 Non-Financial Information

1.2 Non-Financial Information
1.2.1
I.

The Company’s approach to sustainability

PurposeThe Company’s purpose is to “pioneer sustainable aerospace fora safe and united world”. The Company designs, manufacturesand delivers aerospace products, services and solutions tocustomers on a worldwide scale helping to create value anddrive growth. The Company is aware of its responsibility tosociety and future generations, and contributes to a number of
UN Sustainable Development Goals (“SDGs”) through its corebusiness and how it operates.
The Company enables prosperity. Its products help to unite
cultures, connect economies, and enable global cooperationand partnership. The Company brings together people andorganisations across the globe, physically with its commercial
aircraft and helicopters, and virtually with its satellites andconnectivity solutions. It mobilises the collective positive
impact of its workforce, products and services to tackle societal
challenges in partnership with local communities. In addition,
the Company works in cooperation with others to maximise
its positive impact, playing an active advocacy role, educating
the aerospace industry and partnering with other businesses
and public sector organisations to develop technology andsolutions for the industry to contribute to the transition towards
a responsible economy. It is committed to being an economicallyresilient business that has the financial strength to invest in the
future.

GENERAL

Highest governance body(ies) involved

64

The Company is committed to valuing people. Its business isbuilt on a foundation of integrity, safety and quality, applying
high standards from design to operation. A key aspect ofintegrity is respect for human rights. The Company embeds
and advances respect for human rights within its business,
operations and supply chain. The Company’s technology
allows its customers to support the protection of lives duringconflict and the management of crises to reduce the risk of
escalation. The Company’s products help to protect citizens,defend sovereignty and advance global security, mindful that
there can be no sustainability without security.
The Company strives to respect the planet. It aspires to lead thedecarbonisation journey in aerospace. The Company pioneersadvanced and disruptive technologies while continuously
improving the fuel efficiency of its products. From exploring
new aircraft and propulsion technologies and alternatives tofossil fuels such as Sustainable Aviation Fuels (“SAF”), to testing
new prototype aircraft concepts powered by hydrogen, theCompany is committed to reducing the environmental impact
of its products. It is also committed to improving its environmental
performance and, for example, to actively reducing emissions
through its value chain, cutting on-site waste and increasing
the recycling capability of aircraft at the end of their service
life. The Company’s products and services, such as its Earthobservation technologies, allow it to play its part in addressing
climate change, providing insights to help make the planet more
resilient.

GRI

SDGs

Others

2-1 General Disclosures

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

Vigilance Plan

Board of Directors / ECSC
Executive Committee supported by topic-focused committees

Commitments to external frameworks

UN Global Compact, OECD Guidelines for Multinational Enterprises on Responsible BusinessConduct, UN Sustainable Development Goals

Add. resources: this symbol indicates a link to an
external website

Sustainability on Airbus.com , Airbus Tax Strategy , Shaping the future of aerospace on
Airbus.com , Airbus Scale , Earth monitoring and understanding (e.g. Climate changemonitoring ), 2023 ASD Facts Sheet , ATAG Benefits Beyond Borders fact sheet

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

1

II. Indirect contributions
The Company’s contribution to a more prosperous andsustainable society goes beyond what it offers directly throughits products and services. For example, as an important player
in the aviation industry, the Company contributes significantly to

Economic
benefits“– SDG 8 Decent Work and Economic Growth” – as highlighted
through the 2020 Benefits Beyond Borders – global fact sheet,available on the Air Transport Action Group website (latest
available figures, reflecting pre-COVID 19 situation):

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,
the industry supports over 921,000 jobs across the continent, allcontributing to Europe’s economic prosperity with € 260 billion
in annual revenue in 2022.
While the Company contributes to the global economy as awhole, it also contributes to the economic development of thecommunities where it operates. Full aerospace ecosystems –bringing together academia, research centres and corporations,
all with high value-added jobs – often develop around theCompany’s sites such as those in Toulouse, Hamburg or Bristol.

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

This development is accelerated thanks to the Company’s
innovation ecosystem such as Airbus Scale: an innovation
unit that combines corporate innovation, start-up engagement
and company-building activities. Airbus Scale identifies andpromotes internal corporate innovation opportunities that canbe developed into solutions for the external world, bringing themto market and attracting external investments that could resultin spin-offs. This generates value not only for the Company but
also for the local communities where these new companies will
set up and operate.

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

III. Sustainability commitments
Furthermore, the Company understands that contributing to asustainable society is achieved not just through what it does
but also how it does it, striving to minimise negative impacts
and maximise the positive ones. In order to give direction andfocus, in 2020 the Company updated its sustainability strategic
The Company’s four commitments

framework around the four sustainability priority commitments
listed below that also include its value chain in various areas.
These commitments are still in place today and are in close
connection with the UN SDGs, contributing more specificallyto eight of them.

Material topics (see hereafter) SDGs

SectionClimate change#1
Lead the journey towards clean
aerospace

Pollution

1.2.2
1.2.3
1.2.4
1.2.5
1.2.6

Materials and circularity
Water
Biodiversity#2
Build our business on the foundationof safety and quality#3
Respect human rights
and foster inclusion#4
Exemplify business integrity

Product safety
Health and safety
Human rights
Social dialogue
PeopleBusiness integrity

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

Airbus Annual Report

1.2.101.2.11
1.2.12
1.2.13

Inclusion and diversity

Across each commitment the Company has set key performanceindicators (“KPIs”) and targets enabling the Company tomonitor progress towards these ambitions. These can befound in “– 1.2.17 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
the four commitments, completed by two sections which cut
across all four commitments, “– 1.2.15 Responsible supply chain”
and “– 1.2.16 Community impact”. In addition, EU taxonomy
regulatory information is disclosed in section 1.2.19.

66

1.2.7
1.2.8
1.2.9

Cyber security

Universal Registration Document 2023

1.2.14

IV. Materiality matrix
The Company updated its materiality assessment in 2022
and used stakeholders´ inputs to support the ranking of which
ESG issues are most material (and would consequently be
addressed in the sustainability strategy). The range of ESG
topics assessed was defined based on relevant industry andregulatory references, as well as on internal expertise. The
results of this 2022 update were captured in a materiality matrix(refer to materiality matrix chart below), which is fundamental inconfirming the relevance of the Company’s four commitments.
It is a three-dimensional matrix:–– Importance to stakeholders (vertical axis): The Company
asked its 12 most important stakeholder groups (see“Stakeholder engagement” section below) about their viewon how important it is for the Company to address a given
topic. Scoring was established by capturing the voice of key
stakeholders – including employees, customers, suppliers,
investors, social partners – via a survey sent to selected
representatives in each category and targeting individuals who
are familiar with sustainability matters. Other information was
obtained with the support of artificial intelligence (based on
analysis of reports, legislation and media sources), capturing
the importance of the respective topics in stakeholders’communication. Most information was collected using theDatamaran tool. During the feedback consolidation phase, agreater weight was assigned to critical stakeholders.

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

IMPORTANCE FOR THE COMPANY’S STAKEHOLDERS - High to Very High–– Potential impact on rightsholders or ecosystems(horizontal axis): the Company evaluated the potential
impact of its activities on people and environment – e.g.
employees, end users, and local communities. Scoring
was established taking into account the scale, scope,
remediability and likelihood of risks associated with the
topic. This assessment was based on interviews with internal
experts in each domain.

1–– Impact on the Company or financial materiality (bubblesize): The assessment of the potential impact of ESGrelated topics on the Company’s financial performance
took into consideration the degree of risk associatedwith identified ESG topics. Scoring was derived from theCompany’s enterprise risk management (“ERM”) systemand complemented by interviews with representatives fromthe Company’s top management.

Climate change
Product safety

Business
integrity

Cyber security

Occupational health and safety
Pollution

Materials
and circularity

Inclusion and diversity
Employment

Human rights

Water

Supply chain engagement
Biodiversity
Community Impact

Social dialogue

POTENTIAL IMPACT OF THE COMPANY’S ACTIVITIES ON ECOSYSTEMS OR RIGHTSHOLDERS - Medium to Very HighBubble size : Potential impact on the Company - Medium to Very High
Environment

SocialGovernance

The materiality assessment is updated continuously, based on
feedback captured from stakeholders in day-to-day business, theoutcome of the Company’s due diligence – including the analysisof related performance indicators – and the Company’s evolving
understanding of topics’ impacts. In addition, the Company

periodically – indicatively every three years – launches an indepth review where each topic materiality is fully reassessed. The
Company started such an exercise in 2023, which is expected
to result in an updated materiality matrix in 2024.

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1.2 Non-Financial Information

V. Stakeholder engagement

VI. Governance

The Company is committed to engage in constant meaningful
dialogue with its stakeholders, striving for openness,transparency and inclusiveness. Key stakeholder groups, in linewith the International Aerospace Environmental Group proposal
for the sector include, amongst others, employees, customers,
suppliers, industrial partners (including energy providers),social partners, investors, Non Governmental Organisations,authorities / governments / policy makers, industry associations,
MRO (maintenance, repair and overhaul) providers, air navigation
service providers (ANSPs), airports, and the community at large.
The Company endeavours to take the interests of relevant
stakeholders – including in connection with the sustainability
aspects of the Company’s strategy – into account, whereby
the Company aspires to treat its stakeholders with respect anddignity and welcomes their perspectives.

On 1 January 2024, the Company further strengthened
sustainability with the creation of a Chief Sustainability Officer(CSO) position. Hence, Julie Kitcher has been appointed CSO
and Communications and remains a member of the Executive
Committee. In her new role, she continues to assume thegovernance bodies responsibilities previously taken on as EVPCommunications & Corporate Affairs.

In its communications, the Company seeks to use clear andconcise language and works to provide stakeholders with
sufficient information regarding relevant topics, in a timely manner.
The Company attempts to improve its stakeholder engagement
processes continuously, including by regularly reviewing and, if
necessary, updating the various principles it observes, to ensurethat the dialogue remains relevant and effective. If a relevant
stakeholder requests dialogue, the Company tries to facilitate
this request, unless it does not believe that this would be in thebest interest of the Company and its business, in which case theCompany may reject such request. In case stakeholder dialogue
is already taking place, the Company may terminate suchstakeholder dialogue if the Company believes that continuingsuch dialogue would not be in the best interest of the Company
and its business.
The Company’s dialogue with its stakeholders, in line with theabove-mentioned principles, helps the Company to progress its
sustainability ambition. In addition, it has formalised a numberof opportunities to exchange more widely with its stakeholders.
For instance, beyond materiality assessment, the Company
meets at least twice a year with social partners to review
sustainability topics (see “– 1.2.12 Social dialogue”). It has alsoestablished the Airbus Supplier Sustainability Council in 2022
(see “– 1.2.15 Responsible supply chain”). It organises otherevents where sustainability topics are addressed, such as the
Capital Market Day and the Airbus Summit, both last held in
2022. Additionally, it participated in numerous events such as air
shows or conferences, which fostered dialogue on sustainability
matters with a large number of external stakeholders including
investors, customers, media, NGOs, institutions, policy makers,
and other industry or value chain partners.

Conscious of the strategic importance of sustainability, theCompany has defined governance at the highest level. Oversighthas been established at the Board of Directors level with the
Ethics, Compliance and Sustainability Committee (“ECSC”).
For further information about the ECSC, see “– 4.1 Corporate
Governance – Management and Control”. The ECSC is
responsible for assisting the Board of Directors to oversee theCompany’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(this includes the areas of money laundering and terrorist
financing, fraud, bribery and corruption, trade sanctions andexport control, data privacy, procurement and supply chain
compliance and anti-competitive practice); and–– Sustainability strategy and effective governance to ensurethat sustainability-related topics are taken into account in the
Company’s strategy and objectives.
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 to the
management of the Company, including sustainability. Alignment
between the Board of Directors and the Company leadershipteam is also supported by the regular attendance of the CSO
and Communications, an Executive Committee member, tothe ECSC. The Executive Committee has the responsibility toprovide top level expectations and direction, while overseeing
and validating the sustainability 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 Sustainability Strategy Committee, which reviewssustainability performance and progress twice a year, aims
to ensure alignment across all sustainability topics. It is cochaired by the CSO and Communications and the Head of
Strategy and Public Affairs.
–– The Environment Committee, the Inclusion & Diversity
Advisory Board, the Product Safety Board as well as the
Occupational Health and Safety Governance Board (created in
2022; see “– 1.2.9 Health and Safety”), all chaired by Executive
Committee members.
–– The Steering Committees of the Human Rights and Sustainable
Supply Chain Roadmaps, both sponsored by Executive
Committee members.
Other sustainability topics such as business integrity are brought
directly to the attention of the Executive Committee. Where
relevant, additional elements of governance linked to specifictopics are explained in the governance sections.

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

1

Board of Directors

Ethics, Compliance & Sustainability Committee

Executive Committee

Sustainability
Strategy
Committee

Environment
Committee

Inclusion& Diversity
Advisory
Board

Product Safety
Board

Organisation and policy framework. The Sustainability& Environment organisation put in place in January 2020 atcorporate level has continued to develop and expand. Its mission
continues to focus on:-- Setting the ambition level regarding the Company’senvironmental and social commitments.

-- Identifying the levers to achieve this ambition.
-- Identifying means of enabling the business to deliver
this ambition across the full value chain.

-- Engaging employees on sustainability.
-- Providing clarity on ambition and progress to internaland external stakeholders.

-- Coordinating with relevant functions the performanceand reporting on progress with regards to the fourcommitments.

While the Sustainability & Environment team has a Company-widerole to provide direction and check regularly on advancements
across all sustainability topics, there are for each of those topics(e.g. health and safety, inclusion and diversity, human rights, etc.),

Occupational Healthand Safety
Governance Board

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

related functions, departments or “roadmaps” (multi-functional
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 Company’s employees anddirectors, regardless of their job title, responsibilities, seniority,
or location, within every subsidiary or joint venture where theCompany has control.
Incentivisation and remuneration. The Company believes theintegration of sustainability criteria into its reward mechanisms is
an important enabler for accelerating its sustainability ambition. A
sustainability criterion is integrated into the common collective
component of the CEO’s variable remuneration, accountingfor 20%, see “– 4.2.1 Remuneration Policy”. This principle also
applies to the other members of the Executive Committee who
do not serve on the Board of Directors, and to a large extent toexecutives and “Level IV” managers employed at the Company.
Other criteria also apply to all employees as summarised below:

Variable remuneration component

Objective / KPI (s)Weight (s)Population-- Collective performance-- Success sharing

Health and Safety FR1
Reduction of CO2 emission

10%
10%

“Level IV” Managers and Executives(around 4,950 employees)

Health and Safety FR1

c. 5%

Around 125,000 employees

Ethics & Compliance
Functional sustainability
objectives

Over 10%
Individualised

All employees entitled to an individual
bonus (around 50,000 employees)-- Individual performance

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

VII. Airbus’ way forward: vigilance plan
The Company is determined to conduct its business responsibly
and with integrity. It is convinced that promoting responsible
business conduct within its value chain is key to sustainablegrowth. The Company’s vigilance plan includes measures to
identify risks and help prevent severe sustainability-related
impacts resulting from the Company’s own operations and fromits suppliers and other contractors (including subcontractors).
As far as its own operations are concerned, the Company has
adopted internal policies and management tools to help performthe monitoring, assessment, mitigation and reporting of risk
and compliance allegations, which are embedded into theCompany’s culture and processes. For the Company’s vigilance
plan for its supply chain, see “– 1.2.15 Responsible Supply Chain– IV. Supply Chain Vigilance Plan”, which shall be deemed to beincorporated by reference and form part of this plan.
Enterprise Risk Management and internal audit. With regards
to risk management, sustainability risks and opportunities are
fully embedded in the Company’s ERM system. For further
information on ERM, see “– 4.1.3 Enterprise Risk Management
System”. For further information on the Company’s risks, see“Risk Factors”. Internal audits are also performed regularly acrossthe Company, including on sustainability topics. External audits
are performed in line with certification requirements, as detailed
in the related material topic sections.
Sustainability competencies and employee engagement.
Raising awareness, developing competencies and engaging
employees are essential to preventing and mitigating
sustainability risks and maximising opportunities. On this matter,
the Company offered employees more than 1,000 online andin-person training opportunities in 2023, ranging from ethics
and compliance to export control, health and safety, productsafety, cyber security, internal controls, inclusion and diversity,
quality and customer centricity, sustainability awareness andmore. Specific information on training is covered in the relatedmaterial topic sections.

Affiliates. All of the Company’s controlled affiliates are expected
to deploy similar internal policies by applying the Company’s
directives. Through a company-wide single digital handbook,the controlled affiliates access the applicable rules, processes
and procedures. Its enforcement is supported by the Directors’
training programme which was delivered to 110 people in 2023
over seven full-day digital sessions, as well as on-boarding
sessions performed for newly appointed managing directors ofcontrolled affiliates. The Single Digital Handbook assists thoseCompany affiliates, their directors and officers as well as theirrespective Boards in effectively fulfilling their responsibilities, while
assuring the Company’s ongoing commitment to high standardsof corporate governance. The Handbook is 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 methods. 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 and safety, humanresources, governance, finance, procurement and compliancerequirements in order to identify any gaps and define remedialaction plans as required. Controlled affiliates can update the selfassessment on a quarterly basis based on their progress. Internalverifications are carried out by the respective corporate functions
to validate answers and, when gaps are identified, develop
improvement measures with controlled affiliates to enhancetheir conformity level. In 2023, ~250 controlled affiliates wereselected to perform such verifications. Fit checks are conducted
every three years and more frequently when gaps are identified.
The Company’s controlled affiliates are also asked to regularly
evaluate risks via the Company’s ERM system, and to regularly
monitor them as part of their risk assessment process.

Priority risk in the scope of
RISK MAPPINGThe Company

Suppliers a✔

✔

ENVIRONMENT
Climate change
HUMAN RIGHTS
Impacts related to products and services✔

Impacts related to diverse and inclusive workplaces*✔

Risk of forced labour✔

Impacts related to sourcing of raw materials✔

HEALTH AND SAFETY
Exposure to hazardous substances and materials*
Working environment*✔

In situ contractor health and safety management*✔

Mental health and wellbeing✔

* Includes in situ contractors.

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

Complementing the materiality assessment described further
above, the Company reviewed in 2022 and confirmed in 2023
the list of its priority sustainability risks (as shown above) tohelp prioritise its actions. This process complements, and isfully integrated into, the Company’s ERM process. It is basedon contributions and inputs consolidated from a wide range ofstakeholders and resources. This includes desktop research,
interviews with key internal stakeholders and verification withinternal and external stakeholders. The human rights risks
identified were complemented and cross-analysed with product1

life cycle assessments – including sectoral inputs – and theCompany’s top health and safety risks. For more details onrisks related to the environment, see “– 1.2.2 Climate change– III. Risk Management and IV. Transition Plan – 1. Industrial
Operations”. For more details on risks related to human rights,
see “– 1.2.10 Human rights – III. Risk Management and IV.
Implementation / Activities”. For more details on risks related
to health and safety, see “– 1.2.9 Health and safety – III. Risk
Management and IV. Implementation / Activities”.

Procedures for regularly assessing the situation of relevant subsidiaries, contractors and suppliers. The table below
summarises procedures for regularly assessing the situation of relevant subsidiaries, contractors and suppliers. Specific relevant
complementary information can be found in the respective topic sections.
The Company

Suppliers

ICSA (Selfassessment)Internal
assessment /audit

External audits(e.g. ISO)Management
systemSelf
assessment

Company(or via 3rd party)
assessment

Environment✔

✔

✔ ISO 14001(1)

✔

✔

✔

Health and Safety✔

✔

✔ ISO 45001(2)

✔

✔

✔

✔

✔

Human Rights✔

(1) 87% workforce currently covered.
(2) ~25% workforce currently covered.

Prevention and mitigation actions: the table below summarises transversal mitigation / preventive actions.
The Company

Suppliers

Training

Whistleblowing
system(see below)

Environment

✔

✔

✔

✔

✔

✔

✔

Health and Safety

✔

✔

✔

✔

✔

✔

✔

Human Rights

✔

✔

✔

✔

✔

✔

✔

Code of
Conduct

Aler t / grievance and whistleblowing mechanism:
The Company recognises that the Code of Conduct cannot
prevent every situation that may arise, and therefore encourages
people – including employees, interns, temporary workers,
candidates for employment, shareholders and third parties – tospeak-up about concerns related to the Company. Concerns may
be raised through various channels, including through OpenLine(available at https://www.airbusopenline.com ). OpenLine
enables people to submit an alert securely and confidentially.

Policies /
directives

Contractual
terms andconditions

Whistleblowing
systemSupplier
Code of
Conduct

Employees may also report concerns to managers, HRBPs,
Ethics & Compliance Representatives, Privacy Focal Points,
or Export Control Points of Contact. OpenLine is anonymous
where legally permissible. It covers all sustainability topics andis also available to external stakeholders including suppliers.
The Company endeavours to ensure that the procedures toassess, investigate and manage allegations are well-aligned
throughout the Company. For further information, see “– 1.2.14
Business Integrity”.

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1.2 Non-Financial Information

Monitoring system: The table below shows an overview of the monitoring system in place. More detailed descriptions, as wellas performance measures and analysis, can be found in the respective topic sections. Moreover, effectiveness of actions isreviewed periodically in the respective topical governance bodies, as well as in the Sustainability Strategy Committee whose scope
encompasses all four topics.
KPIs
Environment> Operations> Use of Products
Health and Safety
Human Rights

Supply Chain

Responsible
management bodySupervisingcommittee

CO2e Scope 1, 2, Water, Waste

S&E Organisation /Delivered aircraft CO2 efficiency metric Environmental Roadmap
Lost time injury frequency rate

Health and Safety Department

Nb of social assessments

S&E Department / Human
Rights Roadmap% of findings closed within 18 months
Nb of identified high risk suppliers% action plan launched

Controls
ERM, internal audit

Sustainability
Strategy
Committee

Procurement / Sustainable
Supply Chain Roadmap

ERM, internal audit
ERM, site social
assessments
and supply chain
assessments
ERM, external
assessments,
self assessments

Lead the Journey Towards Clean Aerospace
1.2.2 Climate Change
I.

Introduction

In line with the Company’s purpose, “pioneering sustainableaerospace for a safe and united world”, and its aim to lead thetransition of the air transport sector towards the goal set by IATA,
ATAG and ICAO to reach “net zero carbon emissions by 2050”,
the Company’s foremost ambition is to play a leading role in the
decarbonisation of the aviation sector. This includes preparing
technologies for the next generation of Single Aisle aircraft tobe ready in the second half of the next decade, and bringing
the first hydrogen-powered commercial aircraft to the market
by the middle of the next decade. The Company also believes
sustainable aviation fuel (“SAF”) is one of the aerospace industry’s

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key decarbonisation solutions that can be used in both in-service
fleets and the flying fleets of tomorrow. In parallel, the Company
is investing significant resources into examining and reducing theimpact of its products in operation (together with many actors
within the aviation sector). Consideration of greenhouse gas(“GHG”) emissions throughout the value chain is a key focus for
the Company’s analysis of its contribution to climate change.
The so-called “non-CO2” effects of aircraft operations are also
being studied in order to determine their potential climate impact(see Transition plan – Product stewardship).

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

Climate change

1

GRI

SASB

SDGs

Others302 Energy
305 Emissions-- Energy Management-- Fuel Economy & Emissions

9-12-13-17

TCFD
Vigilance planin Use-Phase

Highest governance body(ies) involved

Board of Directors / ECSC
Executive Committee / Environment Committee

Related corporate policies

Environmental Policy, Code of Conduct

Management system
certifications / labels

EMS – Environmental Management System, ISO14001 – 87% of workforce covered
SBTi-validated emission targets

2015
baseline

2022

2023

2030: -63% in linewith 1.5°C pathway,
and neutralising yearly
residual emissions

1,119

757

645

-14.8%-42%

2030: -20%

3,103

2,584

2,534

-1.9%

-18.3%

2035: -46%

88.8

64.4

62.9

-2.4%

-29.2%

78%

80.1%+2.1p.p

Other key metrics (More metrics available in the ESG Data Board)

2022

2023

2023
vs. 2022

Scope 3 – Cat 11 – commercial aircraft – SAF as per IEA-SDS scenario(CO2e ktons)

425,454464,136+9.1%

Scope 3 – Cat 11 – commercial aircraft – “no SAF” scenario(CO2 e ktons)

494,893548,701+10.9%

Scope 3 – Cat 11 – other products (incl. military aircraft, helicopters,
satellites, CO2e ktons)

10,9938,646-21.4%

Scope 3 – Cat 1 – Purchased goods and services (CO2 e ktons)

10,325

N/A

N/A

KPIs
CO2e Scope 1 & 2(1) (ktons)
Energy from stationary sources (2)(GWh)

CO2e Scope 3 intensity
Delivered aircraft efficiency intensity(gCO2 /km.pax)
Supply chain CDP engagement

Target“Maintain at least 75% of sourcing
volume of suppliers invited to CDP
who have responded”

CDP rating
Percentage of responding suppliers to the CDP rated A or B

A-

A-

66%

N/A

2023
2023
vs. 2022 vs. baseline

Remuneration

CO2e performance included in CEO, Executives and “Level IV” managers variable remuneration.
Targets (on TCO scope): 2024: 581 ktons CO2e (-3% vs extended scope). 2023 performance:
593 ktons CO2e or -15%.

KPI assumptions

Metrics: see “– 1.2.17 ESG data board”; targets: see “– IV. Transition Plan”.
(1)
CO2 equivalent (“CO2e”), Total Scope 1 + Scope 2 CO2 emissions “market-based” (location
based net of REC).
(2)
Purchased grid electricity and other purchased energies (gas and other stationary fuels)

Additional resources

Environmental Policy Statement , Sustainability on Airbus.com , Environment on Airbus.com ,CDP Climate Change Questionnaire on Airbus.com and on CDP website ,ATAG Waypoint 2050 , IEA – Aviation report , IPCC AR6 report , SESAR initiative ,CEDAR Chair “Chair for Eco-Design of Aircraft” together with ISAE-SUPAERO ,ATM decarbonisation potential by Eurocontrol

Climate change is considered by the Company as a financiallymaterial topic and is one of the top Company risks (see risk
factors and risk management section hereafter). Impact
materiality was also confirmed through the comprehensive

Scope 1, 2 and 3 screening completed as part of the Company
submitting targets for validation of the Science-Based Target
Initiative (“SBTi”), using the recommended Greenhouse Gas
Protocol methodology.

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While Scope 1 & 2 represent around 0.2% of total emissions
each, Scope 3 category 11 – Use of sold products – has been
identified as highly material for the Company, representing above
90% of total emissions. The second most material was Category
1 – Purchased goods and services, representing around 2.5% of

total emissions (see figures in table below). For those categories,
more precise methodological inventories have been developed(see “– 1.2.17 ESG Data Board – Environmental performance”).

Scope 3 – Use of sold products – commercial aircraft: >90%
Scope 3 – Use of sold products – other products: <3%
Scope 3 – Purchased goods and services: <3%
Scope 1 & 2: <1%
Scope 3 – Total of other categories: <1%

CO2 emissions from commercial aircraft in operation appear
to be the most material category. According to both theIntergovernmental Panel on Climate Change (IPCC) and theInternational Energy Agency (IEA), air transport represented
over 2% of global man-made GHG emissions in 2022. While
this makes the decarbonisation of aircraft operations theabsolute priority, addressing emissions from upstream industrial
operations, including the Company’s own, is also seen as animportant objective. In this context, the Company’s roadmap todecarbonisation is intrinsically linked to the entire sector. While
the Company has a role in developing and providing technicalsolutions, the concomitant development of adapted ecosystems
will also be a key success factor, which the Company intends
to facilitate and enable.
In addition, in order to better meet stakeholders’ expectations
and develop its own climate strategy, the Company adheresto the CDP, SBTi and Task Force on Climate-Related Financial
Disclosures (“TCFD”) initiatives. In 2023, the Company’s
approach to disclosing and addressing its climate change
impacts was rated A- by the CDP for the fourth consecutive
year (early 2024 release). In addition, the Company has set its
first near-term science-based targets to reduce emissions on all
scopes, in line with a 1.5°C temperature pathway for its Scope 1& 2 emissions, which were validated by SBTi in January 2023.
The following sections gather information related to the fourpillars of the TCFD framework, of which the Company has beena supporter since December 2020.

II. Governance
Environmental policy
The Airbus Environmental Policy is the top level definition ofits guiding principles, vision, mission and associated initiatives
relating to the environment. The policy applies company-wide,
including to affiliates where the Company owns more than halfof the voting rights or has the right to appoint the majority ofthe board directors. The policy also covers the Company’s
employees and contractors while at the Company’s sites orat work under the responsibility of the Company. It takes aholistic approach to measuring and acting upon the Company’senvironmental performance by assessing the environmental
impact of internal operations, as well as providing capabilities
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products in operation. This also means introducing a lifecycle
perspective aiming to help in mitigating the risks and impacts at
all stages of the life-cycle: from the procurement of raw materials,
through the design and manufacturing of products, to their inservice life until their retirement.

Organisation and responsibilities
Two main management structures are relevant for the governanceof sustainability matters and climate change: the Board of
Directors and the Executive Committee. As mentioned earlier, theBoard of Directors is supported by the ECSC. In practical terms,
the ECSC, as a committee of the Board of Directors, oversees
strategic decision-making and the execution of the approved
sustainability strategy, including areas such as innovation andenvironmental and climate action.
In 2023, the ECSC reviewed and provided guidance on a wide
variety of climate-related topics, including climate disclosures,internal strategy related to SBTi Targets and SAF.
To support the Executive Committee in environmental matters,
including climate-related matters, an Environment Committee(“EnC”) was established in 2019. The EnC is composed of amember of the Executive Committee and senior executives
company-wide responsible for environmental topics. It meets
every two months to review progress and take decisions
on all matters related to environmental strategy. The EnC’s
review of climate change related topics includes reviewing
progress on meeting objectives to reduce GHG emissions, thedecarbonisation strategy and climate-related risks.
Environmental operations are led by the Sustainability &Environment organisation (described earlier), whose role is toguide the business on environmental matters and to set the policy
and deploy, drive and improve the Environmental Management
System (“EMS”) throughout the Company.
The Company’s EMS is based on ISO 14001:2015. It wasrecertified in November 2022, and confirmed by certification
surveillance audits in 2023. 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 and chemical substances.

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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 has been verified by external auditors. This data is
included in the ESG data board at the end of this section.

Capturing emerging regulatory requirements,
stakeholder’s expectations and trends
In order to anticipate fast-evolving sustainability regulation,requirements and expectations that could impact its business, a“Sustainability Regulatory Intelligence” team monitors regulatory
developments with a view to understanding, evaluating, andpreparing for regulatory requirements that may apply to theCompany’s activities and products. This Sustainability Regulatory
Intelligence team covers sustainability-related topics, including
environment, human rights and sustainable finance.

Shadow carbon price
The Company has started to use an internal carbon price tosupport decision making of the Company’s CapEx investment
taking into account CO2 reduction impacts on operations for
all Divisions. The price has been set at 150 €/tCO2, signallingto project leaders the importance of CO2 footprint reduction
and to support consistency of investment decision making
with the Company’s commitments to decarbonisation. From
November 2023, the use of the shadow carbon price was
extended to current commercial aircraft programmes’ productrelated major incremental developments to further incentivise
carbon efficiency improvements.

III. Risk Management
Environmental risks 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 set of rules applicable company-wide, to ensure consistent
management of environmental risks and opportunities.
Relevant criteria for the evaluation of environmental risks andopportunities include: financial impact, impact on environmental
performance, and impact on EMS certification, as well as legal,
supply chain and reputational aspects.
Risks and opportunities are reported quarterly to the Executive
Committee of the Company and of its Divisions, including1

climate-related risks. Top risks are consolidated at Company
level to be brought to the attention of the Board of Directors andreviewed semi-annually.

Climate-related risks and opportunities
Climate change may have a major impact on both the Company’s
industrial operations and its upstream and downstream value
chain, including directly on aircraft operations and on thewider air transport ecosystem, along with a strong influence
on regulations and on stakeholders expectations. Accordingly,
climate-related risks could materially affect the Company’sbusiness and competitiveness, its customers and other elementsof the aviation industry.
The Company uses the recommendations of the Task Force on
Climate-related Financial Disclosures (“TCFD”) to categorise,manage and report on its climate-related risks and opportunities.
Accordingly, the Company has strengthened its ERM risk
identification process for climate-related risks and opportunities
by incorporating climate scenario analysis, and uses the following
TCFD risks categories for managing and reporting:Transition risks

Physical risks

Opportunities

Technology
MarketPolicy and legal
Reputation

Acute
Chronic

MarketProducts and services
Energy sources

The scope of the climate-risk identification exercise comprises
the entire Company – including its Divisions – and the upstream
and downstream value chain.
Following TCFD recommendations and in pursuit of continuous
improvement, during 2023 the Company has updated its
climate change scenario analysis. It uses a range of different
temperature scenarios (1.5°C, well-below 2°C and >3°C) torepresent different climate realities based upon the global
scenarios of the Intergovernmental Panel on Climate Change(“IPCC” – Assessment Report 6 (“AR6”)) and the International
Energy Agency (“IEA”).
The scenario analysis is used to identify financial and operationalrisks and opportunities related to climate change that may begin
to impact the Company in the short-term (“ST”, around 2025),
medium-term (“MT”, around 2035) and long-term (“LT”, around2050) so that the Company can work to increase the resilienceof its assets and operations in order to mitigate and adapt toclimate change.

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The climate scenarios used in the updated analysis in 2023 are briefly described below:
Aggressive mitigation – Limiting warming to 1.5°C – Based on IPCC Assessment Report 6 (AR6) Scenario Shared Socioeconomic
Pathway (SSP)1-1.9 / Net Zero Emissions by 2050 Scenario (NZE) by the International Energy Agency (IEA) which reflects theambition of the Paris Agreement to the United Nations Framework Convention on Climate Change (Paris Agreement)This is a very ambitious scenario that limits global warming to 1.5 °C by the end of the century. In this scenario the global energy
sector achieves net-zero CO 2 emissions by 2050 and the world reaches the objective of the Paris Agreement. Developed
countries (e.g., including those within the European Union) accelerate in decarbonisation. Societies adopt practices to enable
the required levels of reduction of emissions, including increasing investment in and development of technologies that could
reduce emissions of the transport sector in developed countries and limit emissions growth in developing countries. Policies todecarbonise are introduced immediately (2020s), with these policies diverging across sectors and regions and differing in both
1.5°C the timing of their deployment and their reach.
Mitigation strategies implemented worldwide and across sectors include: (i) transitioning from fossil-based energy to very low
or zero-carbon sources including hydrogen and high density biofuels for aviation; (ii) carbon capture utilisation and storage isused in remaining fossil-fuels facilities; (iii) improvements in energy efficiency are implemented (however additional mitigation
technologies for aviation are required); (iv) both nature- and technology-based Carbon Dioxide Removals (“CDR”) are deployed
to the levels required to neutralise global residual GHG emissions; and (iv) countries implement measures towards restricting
demand for transport services while supporting the shift to more energy efficient and low carbon intensive products andtransport modes.
Severe weather events are more frequent, but the world has avoided the worst consequences of climate change.
Strong mitigation – Warming limited to well-below (“WB”) 2°C – Based on IPCC Scenario AR6 SSP1-2.6 / Sustainable
Development Scenario (SDS) Scenario by the International Energy Agency – Paris Agreement
WB This scenario assumes a more gradual approach in the introduction of climate mitigation actions, limiting global warming to
2°C well-below 2°C by the end of the century. Net-zero emissions are achieved around or after 2070. In this scenario the samesocio-economic trends presented in the scenario limiting 1.5°C are maintained but economic and social development progressis slower and the environment experiences further degradation.
Disorderly mitigation – Warming exceeding 3°C – Based on IPCC Scenario AR6 SSP5-8.5
This is the highest emissions scenario and worst-case scenario in temperature increase. This scenario assumes current levelsof CO 2 emissions and greenhouse gases will almost double by 2050. The world economy grows rapidly, but this growth is>3°C driven by fossil fuel exploitation and very high-intensive lifestyles. This scenario is characterised by high economic challenges
and high social negative impacts and challenges for specific societies to mitigation as well as low socio-economic challenges
to adaptation. The scenario particularly explores the limits to adaptation and the climate physical risks that may impact theCompany’s operations and its value chain. On the mitigation side, in this scenario the pursuit of CO 2 removal and other climate
engineering practices would be more likely given the high challenges to mitigation.

The results of the Company’s climate scenario analysis has led
to the identification of the following risks and opportunities:

Transition – Market: Impact of market measures and theirdevelopment on demand for the Company’s products

Climate-related risks:

Accommodating new types of aircraft that respond to theaviation sector’s decarbonisation objectives requires anecosystem that is ready. For instance, the development of
future products based on the ZEROe concepts will requiresignificant investments in both products and supporting
infrastructure, which could directly impact the operating costsof such a product. Consequently, the absence of measures tostimulate robust hydrogen, synthetic fuels and biofuels supply
infrastructure and adapted procedures to ensure efficiency
and safety of operations could mean that the ecosystem will
be unable to accommodate the Company’s future products,
notably resulting in significant development costs incurred anda risk of compromising the investments made if customers areunable or unwilling to purchase products that cannot be widely
operated within the available infrastructure and procedures.
Moreover, the competitiveness of this next generation productwill also strongly depend, among other factors, on the evolutionof the price of CO2 emissions. A high price on CO2 May impact
the demand for aircraft relative to competitors’ portfolios
and could result in the loss of market share for the Company
relative to its competitors. The Company’s business, results ofoperations and financial condition may be materially affected
if the Company does not, at each step of development of its
future products, account for market expectations while ensuring
its products stay affordable for customers and competitive withrespect to competitors’ portfolios.

Transition – Technology: Emergence of disruptive
technologies from competition and low availability of
renewable and low-carbon energy
Delivering on existing commitments and potential future
requirements to mitigate climate impacts will require significant
investments in new technologies for the commercial aircraft
sector, making the delivery of low-emission technologies asignificant marker of future competitiveness. A competitor or
new market participant could have access to technologicaldevelopments unavailable to the Company that offer significantly
lower emissions at a faster pace than the Company and its
partners, resulting in a loss of market share and competitivenesswith resulting reduced revenue. The imperative for the Company
to develop new technologies faster than other actors in themarket will require substantial research and technology (R&T) andresearch and development investments. Coupled with the needto sustain high investments to spur technological innovation,
the Company has identified risks linked to the availability of
renewable and low-carbon energy. First, there is the risk oflow volumes in absolute terms, due to insufficient investments
in renewable or low-carbon energy (including through thesustainable transformation of available biomass). Second, therisk that even if total volumes are approaching sufficiency inabsolute terms, the aviation sector is unable to, access sufficientvolumes, leading to a risk of a slower than expected substitutionof fossil fuel energy and low uptake of the new solutions andproducts to be developed by the Company, and resulting inlower or longer returns on invested R&D.

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Transition – Policy and legal: Climate-related regulations
and restrictions – divergence in regulatory framework
Aviation and aerospace are complex industries, with longproduct development cycles and where change takes a long time
to be implemented. A rapid evolution of climate related policies(such as the EU zero-pollution communications) 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. In particular for aviation,
as it is a global industry, policies and regulations implemented
at national or regional rather than international level, or theseevolving at a different speed depending on the region, could
result in a negative impact on the competitive conditions for
manufacturers and aircraft operators. This could result in a lossof competitiveness for the Company and reduced demand forits products.
Transition – Reputation: Change in behaviours, perceptions
and societal expectations
Reputational risks could be divided into several categories. Firstly,
there is a risk that negative perceptions about the Company’senvironmental performance could be used as key decisionmaking criteria for consumers, investors, or even new talents.
Secondly, there is a risk that the Company’s reputation could bedamaged by growing societal concerns about the climate change
impact of aviation or by the lack of transparency on progress
made to address climate-related issues. As an example, theCompany was the first manufacturer to disclose its ambition tobring a hydrogen-powered aircraft to the market. If the ambition isperceived as unattainable or if the Company is not able to deliveron its ambition, this could result in reputational damage leading
to less investment, loss of revenues and reduced attractiveness.
A similar situation could occur if the Company’s environmental
performance is not on par with its expressed ambition.
Physical – Acute: Extreme weather events may impact theCompany’s products and its operations
The foreseen consequences of climate change include more
frequent extreme weather events, such as drought, dust storms,
extreme temperatures, extreme winds, flood, hail storms,
landslides, hurricanes, tornadoes, cyclones and wildfires.
These could negatively impact the Company’s products andits operations (including but not limited to route delays and safe
aircraft operations), land assets and infrastructure as well as
employees’ safety (and people’s safety generally).
The above consequences and impacts may result in production
or other operational disruptions leading to lost revenues, reduced
profits, and losses. This could result in the need for additional
modifications to the Company’s products in order to meet more
stringent safety needs, as well as requiring changes to industrial
operations and procurement strategy, leading to increased
operational and production costs and the consequential costsof adapting the Company’s insurance coverage.
Physical – Chronic: Consequences of long-term changing
weather patterns that may cause sea level rise, water
scarcity, chronic heat waves, chronic cold, increased
industrial asset, infrastructure and operations costs, andreduced labour productivity and employee health1higher temperatures, sea level rise, water stress or chronic heatwaves). Such changes may cause an accelerated degradationof the Company’s industrial infrastructure and assets (buildings,
tools, hardware), may reduce the availability of operational
resources and may interrupt logistics flows, therefore impacting
the Company’s manufacturing activities. In addition, the change
in environmental conditions could also negatively impact theperformance of products in operation and negatively impact
the health and safety of the Company’s employees. This may
result in the need for additional modifications to the Company’s
products, as well as to industrial operations and procurement
strategy, leading to increased costs and the adaptation of theCompany’s insurance coverage.
Continuing the exercise performed in 2022 and the physicalrisks identified above, during 2023 the Company has launched astudy case to have local detailed assessments of the exposure
to climate change for certain sites identified the previous year
as priority. This exercise will continue and extend during 2024
and will also include an assessment of the Company’s supply
chain. The focus is intended to be exploring the vulnerability to
climate-hazards (heat and cold; wet and dry; wind; snow andice; coastal and open ocean).
Climate-related opportunities:
Products and services – Demand for energy-efficient
products: Demand for more energy-efficient products (driven
by increased or high energy costs, carbon pricing and climate
commitments) or products allowing the use of other energies
could lead to accelerated airline fleet replacement and to new
business lines.
Market – Market for Earth observation, atmospheric andweather data monitoring services: Increased need for Earthobservation, atmospheric and weather data services (including
but not limited to the following sectors: aviation, agriculture,
finance and insurance) could increase market demand forcertain products and services of the Company, and could also
lead to the creation of new business opportunities.
Energy source – Energy diversification: As the Company
enters the field of renewable and low-carbon energy (including
carbon removal technologies, and including through partnerships
and in collaboration with stakeholders) in order to position the
Company in the energy value chain and contribute to the Paris
Agreement objectives, the Company may also identify further
business opportunities.
Based on a qualitative analysis, the Company has estimatedthe probability of risk or opportunity materialisation. It has also
performed a preliminary internal assessment, using data fromthe Company’s ERM system, as to which climate-related risks
may involve the most significant financial impacts in the future.
The results (as of the publication date of this document) aredisplayed in the following table.
The scope and the assessment of risks and opportunities
covered through this approach are subject to widening andrevision respectively, as the methodology and process further
mature. Mitigation actions the Company has engaged, including
to address these risks and opportunities are presented in thefollowing “IV. Transition plan” section, also supported by SBTiapproved targets presented hereafter.

The foreseen consequences of climate change include longterm shifts in climate patterns (e.g., change in precipitation
patterns, ice/permafrost melt, ocean acidification, sustained

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Climate scenario / time horizon(s)Company’s climate-related where risk or opportunity likelihood
Risks and opportunities
is considered medium or high, based Most Importantfinancial impacts
mapping
on Company’s qualitative analysis
before mitigation
RISKS

1.5°C

WB2°C

>3°C

Transition – Technology✔

Transition – Market✔

Transition – Policy and legal

Physical – Acute✔

Physical – Chronic✔

OPPORTUNITIES
Product and services✔

Market✔

Energy source: MT –-- Supporting fleet renewal by delivering its
latest generation aircraft.
-- Developing and deploying SAF, with the--Transition – Reputation: ST –

Key associated Actions
presented in the Company’stransition plan------

ambition for all aircraft types to be capableof flying with up to 100% SAF by 2030.
Investing in technologies to reduce productemissions, including the objective to bring ahydrogen-powered commercial aircraft tomarket in 2035.
Investing in smart air traffic management(ATM) solutions and optimised operations.
Exploring CO2 capture technologies.
Researching Non-CO2 effect impacts.
Marketing products and services supporting
climate monitoring and adaptation.
Engaging employees, value chain and theecosystem.

: LT

IV. Transition Plan
Based on the International Energy Agency remaining global carbon
budget and the share it allocates to air transport, air transport
can grow at up to a certain level and meet the Paris Agreement
objectives. This relies in part on technological developments toimprove the efficiency of air transport, in which the Company
and its suppliers have a role to play. This approach also echoes“net zero carbon emissions by 2050” ambitions from international
sectoral bodies such as the Air Transport Action Group (ATAG),
as well as the UN specialised civil aviation body, the International
Civil Aviation Organization (ICAO). This is consistent with theCompany’s near-term target setting, covering all three scopes,
and with its core product policy that focuses on developing
and delivering aircraft capable of lower carbon emissions while
engaging with the energy ecosystem (see section 2. Productstewardship). The cost of such a transformation of the sector
is expected to be substantial. In particular, the carbon price(through taxation, emissions trading and crediting schemes)
and the extra cost for SAF and/or higher investments are likely
to materially impact business models of operators.
Based on identified risks and opportunities, the Company has
established a transition plan covering its industrial operations,products and services, supply chain, and employees, including
relevant targets, against which performance is monitored andreported. Regarding GHG emissions, this plan is based on ascientific approach and is consistent with the aviation sector’slong-term aspirational decarbonisation goal of reaching netzero carbon emissions by 2050. Its success will depend on
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engaging with various actors in the aviation sector (describedhereafter) to contribute to the transition towards a low-carbon
economy. The Company is working to embed just and inclusivetransition principles in its decarbonisation plan. For example,
social and human rights criteria are considered in SAF standards,
or have been included in the Company’s carbon offset strategy inorder to safeguard communities that are in proximity to selected
projects, or even create opportunities for them. It is also essentialthat the development of new technologies driving the sector’s
decarbonisation efforts takes into consideration any undesired
environmental and social side effects, such as inappropriate
land use impacting local communities, and human rights. The
Company will strive to consider and avoid these impacts, andto engage accordingly with relevant stakeholders in constantdialogue.
The required transformation of the sector also implies the
emergence of new technologies and associated ecosystems,with expected impacts on jobs and required skills. Preparing
the workforce for such changes will be both a social duty andan important success factor. Consequently, the Company
has updated its sustainability competencies strategy and isdeveloping training, awareness, and engagement plans ina multifunctional team in order to drive culture change andsupport the workforce for the transformation. The Company
is also working with non-profit organisations that are engaging
global young talent around topics of climate change to build
their capacity and prepare them for transition (see “– 1.2.16
Community Impact” and “– 4. Employee Engagement” hereafter).

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1.

1

Industrial operations
Commitments

CO2 emissions
Scope 1&2
Absolute figures

Energy from stationary sources
Absolute figures

2030

Target -63% (SBTi-validated) vs. 2015
neutralisation of residual emissionsaligned with 1.5°C pathway

2023
2024

Target (TCO scope): 687 ktonsCO2 e (-0.9% vs. 2022)
Target: 581 ktonsCO2 e(extended TCO scope, -3% vs. 2023)

2030

Target -20% vs. 2015
purchased grid electricity and other energies(gas and other stationary fuels)

The Company has defined the following targets and ambitions for
its own operations, against which it reports on progress. Targets
have been set in absolute; this means that upcoming anticipatedproduction ramp-up is expected to bring an additional layer ofchallenge towards reaching 2030 targets.
CO2 emissions:–– reduce direct (scope 1) and indirect (scope 2) net GHG
emissions by 63% by 2030 compared to 2015 across thewhole Company reporting scope. This target is in line with a“1.5°C” pathway and was validated by SBTi in January 2023.
As an additional voluntary commitment, the Company aims tocompensate all residual emissions for scopes 1 & 2 from 2023
and gradually switch to using only carbon removals from 2030;–– beyond the mid-term plan, the Company’s ambition is topursue reducing emissions aligned with a 1.5°C trajectory
towards 2050. In order to do so, it is evaluating the futureapplication of the SBTi Net-Zero standard and removing
residual emissions as an additional voluntary commitment;–– interim yearly targets are set in line with the Company’s
2030 roadmap. They refer to a material sub-perimeter of its
operations representing 92% of total reported emissions in
2023, on which the Company can have a more direct control
and influence (see below). This target was set in absolute value
at 581kt CO2e for 2024. This is a 3% decrease vs. a perimeter
extended to another two sites, and including the impact of
new freight transport services offered by the Company that
operates a fleet of five Beluga aircraft.

Energy:The Company revised its Scope 1 and 2 decarbonisation strategy
that now includes local production of renewable electricity(onsite – mostly solar – or through direct power purchaseagreements) as an additional lever the Company will invest in.
While electricity stationary sources energy consumed has been
so far quasi exclusively purchased from the grid (see related
metrics “– 1.2.17 ESG data board – Environmental performance”),
the benefits from its upcoming own or local “off-grid” productionof renewable electricity can only be captured in the purchaseof grid electricity and other energies metric. As a result, theCompany has updated its energy target as follows:–– reduce purchased grid electricity and other energies (gasand other stationary fuels) for stationary sources by 20% by
2030 compared to 2015 across the whole Company reporting
scope.
In order to deliver its ambitions, the Company has developed
a comprehensive action plan for both stationary (ground-fixed
assets) and mobile sources (vehicles such as cars, trucks oraircraft). This takes into account both efficiency improvements
and decarbonisation measures, complemented by an offset
strategy for residual emissions.

For performance monitoring purposes, the Company refers to
Scope 1 & 2 market-based proxy – “market-based (locationbased net of REC)”, i.e. location based with purchased guarantees
of origin deducted. The Company is working towards improving
data collection and market-based methodology implementation.
Meanwhile, this metric is used by the Company to measure its
progress towards its 2030 target, in order to be able to take into
account the contribution of its electricity sourcing on its industrial
decarbonisation target. This refining of methodology is expected
to trigger restatements in the coming years.

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This roadmap was further strengthened in 2023, and, together with proof points, can be synthesised as follows:

Energyefficiency
measures

Stationary sources
c.60% of CO2e emissions in 2023 (Scope 1&2)
(e.g. electricity, heating, cooling)

Mobile sources
c.40% of CO2e emissions in 2023 (Scope 1, e.g.
vessels, “Beluga” air transport operations, flight test)

Substituting energy-intensive assets by energy-efficientones and optimising energy consumptions. In order tomeet the -20% energy purchased target by 2030, a portfolio
of projects was identified, phased and implemented,
including voltage management, low-energy lighting, improved
building insulation, energy-efficient heating and cooling or
optimised ventilation system, as well as enabling projects
such as extending metering network, and enhancing energy
monitoring solutions.
A number of actions were implemented in 2023, including
for instance a CHP dispatch optimisation project in
Hamburg, leading to estimated annual savings of
6,500 MWh / 3,600 tCO2e emissions, or the deployment
of several LED lighting projects in offices and industrial
perimeter, like Broughton leading to estimated annual
savings of 6,300 MWh / 1,780 tCO2e emissions.

Switching to lower emission vehicles where possible
and avoiding emissions through better planning offlights and logistics.
Since 2022, new Beluga jigs and tools have enabledeach logistic flight to transport two A350 wings insteadof one previously.
In October 2023, the Company commissioned
shipowner Louis Dreyfus Armateurs to build, own
and operate the entire fleet of chartered vessels thattransport aircraft subassemblies between production
facilities in Europe and the United States with threemodern, lower-emission vessels, supported by windassisted propulsion. The new fleet, targeted to enter
into service from 2026, is expected to reduce averageannual transatlantic CO2 emissions from 68,000 to
33,000 tonnes by 2030.

Ambition to secure at least 90% renewable or low-carbon
electricity direct supply to all sites before 2030. This will
be achieved with the implementation from 2023 through a
combination of on-site solar electricity production (PV), locallysourced projects (physical power purchase agreements(“PPA”)) and long term renewable supply contracts (sleeved
PPAs), complemented by low carbon sources (eg. nuclear
power).
In addition, Renewable Energy Certificates / Guarantee ofOrigin (“GoO”) are used as a temporary solution until PPAsand PV-related projects are deployed and to compensate forresidual emissions post 2030 (up to 10% in 2030).
In 2023, PPAs were contracted for instance in Spain –covering 40% of purchased electricity (~80 GWh) – andin China, well advanced in the UK and initiated in Franceand Germany.
In 2023, GoOs covered more than 40% of purchased
electricity and more than 10% of purchased natural gas.

Using lower carbon fuels (e.g. SAF). The share of
SAF used in the Company’s own operations will
progressively increase to at least 30% by 2030.
It concerns test flights, delivery flights, logistic flights(Belugas) and employees air shuttle flights between some
European sites. The Company also started using low
carbon fuels such as hydrotreated vegetable oil (HVO) for
its maritime logistics. It has set interim targets.
The 2023 target of 10% for its commercial aircraft activities
and its Helicopters Division was overachieved by 1p.p.;2024 target has been set at 15% for its commercial aircraft
activities and 20% in Airbus Helicopters Division.
Since 2019, SAF has been used in the operation of theCompany’s Beluga transport aircraft for the purpose ofinternal logistics.
In 2023, in total, an estimated 20,124 tons CO2e were
saved when compared to conventional kerosene.

--

Transition to
renewable or
low carbon
energysources---

Carbonoffsetstrategy------

The Company aims to remove 100% of its residual yearly emissions by 2030, which will represent around 400kt
CO 2 e in 2030. It started with compensating all remaining emissions from 2023, with a gradual phase-in of carbon removal
solutions aiming to cover 100% of yearly residual emissions by 2030. Both nature-based and technology-based removals
are considered and deployed following the conclusions of the IPCC (e.g. Special Report on 1.5°C and Assessment Report6). In order to secure long-term access to durable carbon removals, the Company also seeks to develop its own direct air
capture technology, based on an existing in-house space technology. The Company intends to work in partnership withcarbon sequestration companies to generate additional technology-based carbon removals.
Since 2019, the Company has introduced a mechanism to fully compensate for its business travel emissions based on theconcepts of additionality, real (permanent) reduction, prevention of double counting, prevention of overestimation and no
additional harm.
As a minimum, the carbon offsets purchased by the Company are 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 eachone of the mentioned criteria was met. In addition, understanding that these carbon offsetting programmes may havegaps in their methodologies, additional proof is requested of how such gaps are managed by the provider. Moreover,societal aspects are considered, such as prevention of child labour, respect of human rights and relations with thecommunities surrounding the projects.
The volume of offsets required in 2023 was around 725 ktCO2e procured through offset producer South Pole in theform of a cluster of compensation and removal projects: afforestation (VCS), landfill gas and waste gas (GS-VER), forest
conservation (VCS-CCBS).
The Company plans to secure 2024-2030 volumes well in advance, with progressive transition towards 100% removals, aswell as a mix of nature- and technology-based solutions.
In 2022, to foster tech-based solutions development, the Company has partnered with 1PointFive, a US company,and has pre-purchased 100,000 tons of carbon removals per year over four years – or 400,000 tons in total – aspart of an initial offtake. The partnership agreement sets out that the carbon captured in respect to the Company’s
agreement shall exclusively be geologically sequestered and not used for enhanced oil recovery (EOR) or synthetic fuelproduction. A portion of these volumes will be allocated to the Company’s scope 1 & 2 offset strategy. In 2023, a portionof those 400,000 tons has been allocated to airline customers (easyJet, Air Canada and Lufthansa), demonstrating theCompany’s commitment to help its customers on their decarbonisation roadmap.

--

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1.2 Non-Financial Information

Resilience of industrial operations in the context
of climate change
To evaluate physical risks linked to climate change for industrial
operations (see Risk Management above), the Company is now
conducting a more detailed assessment of the consequences on
affected sites. The approach includes a preliminary vulnerability
analysis with digital filtering to classify and prioritise risk areas,
followed by field visits with the support of external experts. Four1

types of hazard areas are analysed related to temperature (frost
and cold spells, extreme heat, cooling/heating requirements),
the related windward (winter storm, cyclonic, hail/lightning/
tornadoes), water (river flooding, coastal flooding, extreme
precipitation, drought episodes) and land/ground movements(landslide). This analysis also considers the speed of onset ofsuch risks, which should enable the Company to better prioritise
related mitigation plans.

Tracking progress and performance
In 2023, scope 1 & 2 GHG emissions have decreased by around 15% (-15% on TCO scope), exceeding the target, primarily due
to three factors: a reduction of gas usage by switching from gas to electricity on certain heating systems and the optimisation ofcogeneration in Germany, mild weather conditions during the year and the adjustment of the ramp-up.
2 000

1 000
900
800

735

1 500

600
1 000

500

645

Deliveries

ktons CO2e - Scope 1&2

700

400
300

500
200

-63% vs 2015

100
0

0
2015

2023

Actuals

TCO
CO2e (ktons)

Target2030

Revised ambition

Deliveries

Target 2023

2022

2023

YoY Change

687

696

593

-14.8%

Verified by EY® & Associés. Limited assurance report issued by EY® & Associés is available on the Company’s website.
The TCO scope is reviewed annually. It covered 92% of total emissions in 2023. Data were updated to reflect change in TCO scope accordingly.
Geographical scope: In 2023, 52 sites.
Scope of metrics: Scope 1 & 2 and notably excluding refrigerant leakage, electricity on site from CHP, emissions due to processes. Scope 2 is location based with purchasedguarantees of origin deduced.

Additional performance metrics are disclosed in “– 1.2.17 ESG data board – Environmental performance”.

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2. Product stewardship
Commitments
CO 2 e Scope 3 intensity
Delivered aircraft efficiency

2035

Target -46% vs. 2015
SBTi-validated(gCO2 /km.pax)

2050

Support sector’s “net zero CO2 ambition”

The Company has committed to a mid-term reduction target for
its Scope 3 category 11 (use of sold products) for commercial
aircraft products, covering over 90% of its total emissions.
–– CO2e: reduce scope 3 (category 11 – use of sold product) for
commercial aircraft by 46% in terms of CO2 per passengerkilometre. This target, alongside the Company’s scope 1 &2 target, was validated by SBTi in January 2023. It was set
based on the carbon budget allocated to aviation by theInternational Energy Agency in its Sustainable Development
Scenario (SDS).
–– This is a physical intensity target, in line with the SBTi
recommendations, and highlighting the importanceof technology and aircraft carbon efficiency for the
decarbonisation of the sector. The metric is based on the
Company’s corresponding scope 3 Use of Sold Product forcommercial aircraft. In alignment with SBTi methodology, it
now includes emissions from upstream fuel production andpredicted average SAF usage over the aircraft life-time as per
IEA SDS (ETP 2020) scenario. See “– 1.2.17 ESG Data Board –Environmental Performance” for detailed methodology.
The Company is committed to contributing to meeting theParis Agreement targets and to taking a leading role in the
decarbonisation of the aviation sector in cooperation with all
stakeholders. Consequently, the Company is developing a
multi-faceted climate-impact programme for commercial aircraft
based on key decarbonisation levers identified. This includes
new aircraft technology development, SAF, hydrogen, air traffic
management (ATM) solutions, and carbon removal solutions.

Aviation industry targets
The efforts of the aviation sector to reduce its environmental
footprint started decades ago, with significant achievements toreport. Since the 1990s, the sector has improved significantly
the fuel and CO 2 efficiency of subsequent generations ofaircraft, thereby reducing CO2 emissions per revenue passenger
kilometre by more than 50% (according to ATAG) since thedawn of the jet age. In 2009, the aviation sector was the firstto agree at sectoral level on ambitious CO2 emission reduction
goals through 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

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2023 Progress / performance-29.2%–46%
63%
achieved-to-target

and commitment with the 2021 edition of the “ATAG Waypoint2050” report to reflect the industry’s increased ambition toachieve “net-zero carbon emissions” by 2050 and to contributeto the Paris Agreement goals. Along with the revised ambition,
ATAG provided several scenarios with ranges of improvement foreach mitigation option: technology and design improvements,
operational and ATM enhancements, new energy carriers(Sustainable Aviation Fuels (SAF) and hydrogen), and marketbased measures including ICAO’s Carbon Offsetting andReduction Scheme (CORSIA).
The industry’s unity and leadership around its 2050 “net-zerocarbon emissions” commitment, played a role in supporting thedefinition of a corresponding long-term aspirational goal (LTAG)
also at ICAO level. In October 2022, the aspirational objectiveof “net zero carbon emissions” in 2050 for international civil
aviation operations was adopted by a vast majority of ICAO
member states. This political commitment paves the way forthe transformation of the aviation sector, ensuring a level playing
field at international level and it will accelerate the developmentof mitigation measures such as fleet renewal, aircraft and engine
technologies, alternative energy carriers such as SAF or greenhydrogen, and the enhancements of the operational practices
and air traffic management. The Company fully supports thisinternational long-term aspirational goal.
In Europe, the EU Green Deal creates conditions andopportunities for the Company and the European aviationindustry to accelerate the transition. The Company supports
the aviation industry’s ambition to reach a “net-zero carbon
aviation ecosystem” in Europe by 2050, and will contribute to
the EU’s “2030 Climate Target Plan”.
In November 2023, the European Commission officiallypublished a delegated act for the EU Taxonomy Regulation
including a set of criteria for aviation. They recognise thedecarbonisation potential brought by the latest generation ofcommercial aircraft through the replacement of the current fleet
and the importance of an ambitious SAF ramp up, as well as therelevance of “zero direct tailpipe CO2 emission” technologies,
which are the cornerstones of the Company’s transition plan.
(see “– 1.2.19 EU Taxonomy”).

1. Information on the Company’s Activities
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1

The aviation industry’s roadmap towards carbon neutral emissions by 2050

Source: the Company, based on ATAG Waypoint 2050 report (2021) - Scenario 3: “aspirational and aggressive technology perspectives”

CO2 emissions (in millions of tons)

2,500

2,000

Estimated "What if"
before fleet replacement(frozen 2019 average emissions)
Disruptive technology

1,500

Operations & Infrastrucures
Sustainable Aviation Fuels
Offsetting

1,000

Sector’s net zero 2050
aspirational goal

500

0

2020

2030

2040

2050

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The Company’s roadmap to reducing emissions
In this context and as a core axis of its strategy, the Company aims to accelerate the development of lower emission technologies
in order to market lower carbon aircraft including hydrogen-powered aircraft. Fostering ecosystem readiness including associatedinfrastructure and the dynamic deployment of SAF will be another priority, in order to achieve this ambition while minimising therecourse to offsetting, as presented below.
Strategic pathway 1

Renew current fleets with best-in-class aircraft

Around 70% of the global commercial aircraft fleet is still made up
of previous generation aircraft, while latest generation aircraft
are up to 25% more efficient than the previous generation.
Renewing the fleet therefore offers immediate potential for aviation
decarbonisation.
The Company consistently works to improve the efficiency of its
aircraft:
A350 and A330neo offer 25% reduction in fuel burn per seatand significantly reduced noise footprint versus the previous
generation of aircraft;
the A320neo family brings a 20% reduction in fuel burn per seat,and nearly half the noise footprint compared to the previous
generation of aircraft;
A220 offers 25% reduction in fuel burn per seat versus theprevious generation of small single aisle aircraft, 50% reduction
in noise footprint and 50% fewer NOx emissions than thestandards.

--›› In 2023, the Company delivered exclusively latest generationcommercial aircraft (2022: 99%).

›› The A321XLR offers the opportunity to open longer range routes

to the single aisle aircraft family, thereby leveraging the platform’s
greater CO2 efficiency. It has continued its certification campaign in
2023 and in October, the aircraft finalised its route and passengerproving campaign on time for a planned entry into service in 2024.

---

The Company is continuously improving its products through newaerostructures designs and technologies, advanced materials,
upgraded systems and more fuel-efficient engines aiming toachieve CO2, NOx and noise emissions reductions in operations.

Strategic pathway 2

Developing and deploying SAF, all aircraft types compatible with up to 100% SAF by 2030.

In order to accelerate its action plan, the Company strengthened its governance on this matter by creating a dedicated project team,responsible for the end-to-end SAF roadmap strategy and deployment.
The Company recognises SAF as a major pillar of the aviation decarbonisation roadmap for the short, medium and long-term. SAF is a fuelderived from a range of “feedstocks” (origin of carbon molecules used) made from sustainable resources; the reduction of CO2 emissions
throughout its life cycle can exceed 80% when compared with conventional kerosene. Eight SAF production pathways are currently certified
for blending with kerosene, including processes such as hydroprocessed esters and fatty acids (HEFA), alcohol-to-jet, Fischer Tropsch,or power-to-liquid. Some of them are derived from used fat, cooking oil and grease, municipal waste, agricultural and forestry waste andresidues. More advanced technologies use hydrogen and carbon captured directly from the air as feedstock for SAF production.
In order to be considered a SAF, an aviation fuel needs to meet defined sustainability requirements; the Company supports the ones set out
by ICAO/CORSIA and in particular aspects related to non-competition with food and water resources. It also actively supports current andfuture sustainability criteria via regionally or nationally recognised schemes including EU Renewable Energy Directive (RED II), Renewable
Fuel Standard (RFS), Low Carbon Fuel Standard in the US, Renewable Transport Fuel Obligation in the UK and “Renewable Fuel Units”(HBEs) in the Netherlands.
SAF levels of production are currently low compared to volumes that will be necessary in the coming years. According to IATA, in 2023,
SAF volumes are estimated to have reached over 600 million litres (0.5Mton), representing about 0.2% of total aviation fuels, doubling the
300 million litres (0.25 Mton) produced in 2022 and six times more than the volume produced in 2021. Acceleration will be required to reachthe first milestone in 2030 set by the sector during the ICAO Conference on Aviation Alternative Fuels in 2023 to reach 23 billion litres (5.2%of total fuel consumption) SAF produced, or through the 6% EU SAF mandate. The Company believes coordinated action of all stakeholders
could foster a 10% SAF penetration at the global level by 2030.
Acknowledging that SAF scale up success will depend on consistent actions by all actors including engine makers, producers, airlines,
airports, logistics providers, and policy makers amongst others, the Company is seeking to act both as technical solution developer andcatalyst for the ecosystem, both at global and regional levels. The Company supports the ambitious rollout of SAF using all production
pathways meeting the sustainability criteria described above, and developing visibility to foster demand meeting supply will be essential.
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Deliver technical capability
Aircraft. The Company’s aircraft portfolio is already capable of flying
with a fuel blend of up to 50% SAF. Looking ahead, the Company’s
ambition is to have all its aircraft platforms (including military aircraft
and helicopters), capable of being operated with up to 100% SAF
before the end of the decade. The 50% limit is set today to ensure
the blended SAF fits within the JET A/A-1 specification, and thus
can be used on aircraft with no modification (i.e. drop in). Going
beyond this limit implies either modifying the aircraft, and fuelling
infrastructure, to adapt to what would be a new fuel grade, “nondrop in”, or working on a purely synthetic fuel that would fit within
the JET A/A-1 specification, “drop in” solution.
The Company is involved in two main research projects: VOLCAN(A319neo and A321neo with CFM engines) and ECLIF3 (A350 with
Rolls Royce engines), conducted in partnership with important
industry actors. Both projects aim at assessing the impact of
100% SAF (drop-in and non-drop in) on engine and fuel systems
while measuring the positive impact on aircraft’s emissions andfuel efficiency. Both projects are paving the way for going beyond
current maximum blending levels for SAF (currently 50%). They
will allow the Company to collect information and enable further
research activities and technical work in order to reach the goal ofgaining up to 100% SAF certification for commercial flights before
the end of the decade.

›› Since 2008, the Company has acted as an important catalyst in

the certification process, demonstration flights, partnerships andpolicy advocacy of SAF.

›› According to IATA, since 2011, over 690,000 commercial flights

have used SAF and more than 1 million flights with SAF are
expected by 2025 (source: IATA, flynetzero, 2021).

›› Besides ECLIF3 and VOLCAN projects, the Company has

performed flight test campaigns with the A380 on one Rolls-Royce
Trent 900 engine and with the H225 helicopter (with both Makila 2
engines).

›› Flight tests using blended SAF were also performed on the A400M

and C295 military aircraft. The Company, the Organisation for
Joint Armament Cooperation (OCCAR) and the A400M customer
nations are engaged in initial discussions to develop the roadmap
towards the certification and operational use of 100% SAF in
military aircraft.

›› In addition, the Company and other industry partners have carriedout in 2022 the world’s first 100% SAF flight using an in-service
military aircraft, an A330 MRTT on both Rolls-Royce Trent 772B
engines.

SAF production. The Company contributed to the approval
process of the eight pathways mentioned above for blending
with kerosene and seeks to actively contribute to the approval of
future new pathways by supporting industry-wide standardisation
efforts at ASTM International, an organisation that sets international
standards.

Foster SAF ecosystems readiness and partnerships
Price and global production capacity remain the main constraints
for operators, preventing large-scale incorporation of these types
of fuels. Matching SAF production and demand is essential toachieving the establishment of the SAF market.
Global. Actions need to be global and associated with regulatory
frameworks and incentivisation schemes. It is necessary to create
market emergence conditions with means such as:Reporting mechanisms to allow for a consistent tracking of theindustry’s progress on decarbonisation.
The usage of book and claim to simplify the usage of
SAF, minimising the logistical challenge as well as airlines
demonstrating the attributes of SAF to their freight and corporate
customers.

---

Those conditions are needed to give visibility and confidence toproducers, and be capable of attracting investment. This is also
what will give end users (airlines) access to enough volumes at alower price, and maintain a level playing field for aviation.
Regional. SAF production will also depend on regional feedstock
availability while local SAF production can significantly contributeto socio-economic regional development, including in developing
nations.

›› The Company estimates that products delivered in 2023 will see

their life-time emissions reduced by around 15% thanks to thegradual introduction of SAF during their operational life (compared
to a “no SAF” scenario). This considers a SAF penetration scenarioaligned with the IEA SDS (ETP2020), and with the Company’s
scope 3 disclosure and SBTi-validated target.

›› The Company is engaged in many initiatives and partnerships
promoting the development of SAF production and use,
participating for instance in the World Economic Forum, including
its “First Movers Coalition” and “Clean Skies for Tomorrow”
coalition, and in the Coalition for the Energies of the Future.

This also includes partnerships with producers such as theagreement signed in 2022 with Neste, in 2023 with Lanzajet, Masdar,
aiming to accelerate the aviation sector’s transition to SAF.

›› In September 2023, the Company officialised its intent to join aconsortium aiming at developing synthetic green hydrogen-based
SAF production in Germany, alongside other companies (SASOL,
DHL and HH2E).

›› In April 2023, the Company signed a MoU with China National

Aviation Fuel Group Corporation (CNAF) on development of the
SAF ecosystem, including SAF purchasing, diversifying the supply
chain, fostering airline uptake and standards development.

Positive momentum is seen in the EU and in the US. A similar pace
for creating a favourable ecosystem is needed worldwide. Creating
favourable conditions for the SAF market to develop can beachieved if stakeholders gather together in cooperative platforms
such as Commercial Aviation Alternative Fuels Initiative (CAAFI) in
the US.

›› In 2023, the Company also joined the consortium ALIGHT in

Early adopter. In addition, as an aircraft operator through its flighttests and internal logistics flying the Beluga, the Company strives to“prime the pump” by demonstrating market demand (see industrial
operations). This also helps the Company experience the actual
SAF market development challenges.

›› As part of a partnership with Qantas announced in June 2022, theDenmark, consisting of 17 dedicated partners in 10 different
European countries and aiming to develop replicable and scalable
models supporting aviation and airport operation decarbonisation,with a focus on SAF including fuel supply chain, usage of SAF,
economics and sustainability criteria.
Company made its first investment to support a SAF producer inAustralia (March 2023). JetZero is a new player that will be using theAlcohol to Jet technology to produce SAF in Australia.

›› In a similar manner, the Company signed a partnership in

September 2023 with DG Fuels in the US. DG Fuels will be using
the Gasification Fischer Tropsch technology to produce SAF. Thispartnership will help DG Fuels accelerate its development towards
the final investment decision for their first plant.

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Supporting the development of consistent regulatory frameworks
In the context of the developing regulatory frameworks fostering
SAF market growth, the Company supports policies thatwould incentivise SAF production and usage. In particular, theCompany is supporting and sharing industry best practices,looking at production sharing industry best practices, looking at
production levels assessment, life cycle analysis methodology
and sustainability criteria and standards harmonisation. A clear,stable and consistent policy at global and local level as well as
incentivisation or regulations are needed to promote long-term
investments and technology development.
Global. Aviation is a global industry that requires a global
framework of standards and regulations, also supporting a global
level playing field.
Systematic implementation of SAF policies in all states,
supporting SAF development and deployment.
Recognising CORSIA as a reference for sustainability standards,
thus helping global sourcing of SAF.

---

The Company also takes a leading role in cross-industry initiatives
with ICAO state members, ATAG, IATA, JetZero Council (UK), First
Movers Coalition (a partnership launched by the World Economic
Forum (WEF)).
Regional. In addition, the Company is monitoring the developmentof SAF-related regulations at national or regional levels, theirconsistency with global standards and regulatory frameworks.

›› In November 2023, the ICAO Third Conference on Aviation

Alternative Fuels (“CAAF3”) reached agreement on an ICAO Global
Framework for SAF, Low Carbon Aviation Fuel (“LCAF”) and other
Aviation Cleaner Energies.

One of the key elements of this Global Framework is the objective to
reduce CO2 emissions of international aviation by 5% by 2030 throughthe use of SAF and LCAF.
CAAF3 also resulted in other points of convergence that the Company
welcomes:
the implementation of a policy on SAF in every state;
CORSIA recognised for sustainability criteria;
the development of an accounting system to report and claim
reduction of CO2 emissions;the exploration of a book and claim system;
support to developing and emerging countries to get access tofinancing for their SAF projects;
the qualification of new pathways by producers, manufacturers
and the ASTM;
a reporting by each state and a global monitoring by ICAO of the
progress made on SAF production and use.

--------›› ICAO and the Company have signed a Declaration of Intent at
CAAF/3, with the aim of developing a project to explore the feasibilityof SAF development and deployment in South America.

›› The US SAF Grand Challenge aims to scale up SAF production to atleast three billion gallons per year by 2030.

›› The EU’s current “ReFuelEU” regulation sets a 6% SAF mandate for2030 growing to 70% by 2050 (including 35% of synthetic e-fuels).

Strategic pathway 3

Investing in technologies to reduce product emissions

Preparing technologies for a next generation Single-Aisle aircraft to be ready in the second half of the next decadeThis will be enabled by the current research on disruptive
technologies for airframe and engines.
Wings. The wings are often referred to as the second main lever toreduce aircraft emissions. Several technologies are being studied
such as:The Company’s transnational research & technology
programme, “wing of tomorrow”, has successfully delivereda first full-size wing prototype or “demonstrator” that will help
mature next-generation wing technologies.
Wing of tomorrow is particularly efficient thanks to theincorporation of lighter composite components and of a folding
wing tip.
The completion of the first of three fully composite wing
demonstrators marks the integration of more than 100 different
component and manufacturing technologies that include an
all-new industrial assembly system, and which have helped
validate key automation targets.

----

As key partners in the European Clean Sky 2 and Clean Aviation
programmes, the Company is also researching new technologies
aimed at increasing efficiency, such as a new semi-morphing
wing, new dynamic winglets, or innovative flight controls on the
Company’s military C295 transport aircraft.
Engines. On the engine side, the Company is closely following
innovations coming from the engine manufacturers, andsupporting them to adapt and integrate their latest innovation toaircraft needs.

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Development Centre (WTDC), in Filton. The facility will be used
to build and test demonstrators for a range of programmes andresearch projects.

›› The “eXtra performance wing project”, launched in September 2021,

improves wing aerodynamics and performance that is intended tobe compatible with any future aircraft configuration and propulsion
system to reduce CO2 emissions.

In November 2023, the demonstrator flew for the first time with theexact systems needed for its flight test campaign with its new wings,
in 2025.

›› In 2023, Airbus Helicopters unveiled the PioneerLab, its new twin-

engine technology demonstrator based on the H145 platform. It
complements the Company’s range of FlightLabs and focuses on
testing technologies that reduce helicopter emissions, increaseautonomy and integrate bio-based materials. Its other FlightLabcalled Disruptive Lab flew successfully for the first time inJanuary 2023.

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Hydrogen-powered commercial aircraft ambition by 2035
The Company believes hydrogen is one of the most promisingtechnologies for reducing aviation’s climate impact. If produced
from low carbon electricity through electrolysis, it allows asignificant reduction in overall emissions.
Aviation will be an end use application of hydrogen. The Company
sees two primary uses for hydrogen:Hydrogen can be used to directly power the aircraft by being
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 can be used to create eFuels (power-to-liquid or
power-biomass-to-liquid synthetic fuels in combination withcarbon from biomass or enhanced carbon sink sources).

--

Progress was made in key areas in 2023, including:›› The iron pod of a first fuel cell powered engine was tested in the EAS
test house and reached 1.2MW. This is the power needed by one
engine in the Company’s six pod configuration concept.

›› In May 2023, ArianeGroup, a joint venture between the Company andSafran, successfully completed a proof-of-concept of a hydrogen“conditioning system” adapted to power an aircraft turbine engine.
The project known as HyPERION is an essential building block of
the hydrogen technology roadmap to 2035.

--›› In June 2023, the Company launched HyPower, a demonstrator

From hydrogen propulsion to hydrogen-based synthetic SAF,
from pod configuration to blended-wing aircraft, the Company
is evaluating, maturing and validating radical technologicalbreakthroughs.

›› In August 2023, the Company, BMW Group and Quantinuum

In 2020 the Company revealed three different hydrogen- powered“ZEROe” concept aircraft. They illustrate the research that theCompany is investing in with the objective to bring a hydrogenpowered commercial aircraft to market in 2035.

›› Blue Condor took off for the first time in November 2023. This

programme which will explore, on the ground and in flight, a newarchitecture for the generation of non propulsive energy through theuse of hydrogen fuel cells. This energy represents around 5% of anaircraft’s total energy used.
developed a hybrid quantum-classical workflow to speed up future
research using quantum computers to simulate quantum systems,
focusing on the chemical reactions of catalysts in fuel cells.
demonstrator will study and assess the impact of non-CO2
emissions induced by hydrogen combustion.

Foster hydrogen ecosystem readiness
The Company seeks to go beyond technology maturation by collaborating with the wider ecosystem, and focusing primarily on the evolutionof market needs and how they can be answered with renewable and low-carbon hydrogen. It has engaged in many partnerships, as wellas collaborations and alliances with airports, airlines and energy providers. Hydrogen can only become a substantial decarbonisation leverwith the support of all stakeholders.

›› In 2019, the Company signed a memorandum of understanding with airlines such as SAS Scandinavian Airlines and easyJet to jointly
research a hydrogen-powered aircraft ecosystem and its infrastructure requirements.

›› It has joined several major hydrogen alliances, such as the Hydrogen Council, Hydrogen Europe, and European Clean Hydrogen Alliance.

It has launched in 2020 a joint-venture with ElringKlinger in order to benefit from the huge cross-industry experience of other industries,
and accelerate its ambition.

›› It also participates in The Fuel Cells and Hydrogen Joint Undertaking, European Clean Hydrogen Alliance, France Hydrogène, FrenchConseil National de l’Hydrogène, and the German Wasserstoffrat.

›› The Company promotes the “H2 Hub at airport” concept in which partners will join forces to adapt the infrastructure to the use of hydrogenby aircraft, and more. In this context, it has signed partnerships with Delta, Wizz Air, Linde, Air Liquide, Changi Airport / Caas, Korean Air,
Incheon Airport, Kawasaki Heavy Industries, Kansai Airport, Plug Power, Fortescue Future Industries, ANA, Air New Zealand, Christchurch
International Airport, Hiringa, Fabrum, Hamburg Airport, Vinci, Engie, AREC, group ADP, Bristol Airport, Hynamics, Hydrogen South West,SAVE SNAM and Milan Airport.

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Electric flight
The Company’s work in electric flight has laid the foundations for the
future concept of lower carbon commercial aircraft. Since 2014, theCompany has been exploring how recent technology advancements,from battery capacity and autonomy to electric propulsion, can help drive
the development of new kinds of aerial vehicles with the potential forsignificantly reduced impact.
EcoPulse. The Company has partnered with Daher and Safran to develop
a distributed hybrid-propulsion aircraft demonstrator with the support ofFrance’s CORAC and DGAC and for which it is providing battery technology
and overseeing aerodynamic modelling. EcoPulse successfully flew for the
first time with its electric engines in November 2023.
Urban air mobility ambition. The idea for a compact “flying taxi” firstcame from the Company’s desire to take city commuting into the air in asustainable way. The Company has learned a lot from the test campaigns
with two demonstrators, CityAirbus and Vahana. Beyond the vehicle, theCompany is working with partners, cities, and city inhabitants in order tocreate the ecosystem that is essential for this new operating environment
to deliver a sustainable service to society.

Strategic pathway 4›› Following the partnership between the Company andRenault Group to advance research on electrificationand mature technologies associated with nextgeneration battery systems, another partnership was with
STMicroelectronics, a global semiconductor leader serving
customers across the spectrum of electronics applications.
The agreement includes the cooperation on powerelectronics Research & Development to support more
efficient and lighter power electronics, essential for future
hybrid-powered aircraft and full-electric urban air vehicles.

›› In October 2023, Airbus Helicopters’ demonstrator

FlightLab successfully tested an electric flight control
system in preparation of a new human machine interface(HMI) that will equip CityAirbus NextGen, Airbus’ eVTOL
prototype. This milestone represents an important step
towards ushering in a new generation of electric powered
urban air mobility aircraft.

Investing in smart air traffic management (ATM) solutions and optimised operations

Improving the efficiency of air transport operations and infrastructure could reduce emissions by up to 10% (source: ATAG).
The Company therefore supports initiatives aimed at reducing ATM
inefficiencies such as the Single European Sky Air Traffic Management
Research programme (SESAR), such as the HERON project aiming to
reduce CO2 emissions from air transport and offer mitigation through thedevelopment of activities including more efficient aircraft operations intaxi phase, trajectories optimisation via the general principle of Trajectory
Based Operations (“TBO”), optimised approaches targeting and noise
reduction. The current ATM environment based on static flight plans
is evolving towards TBO in order to improve airport and ATM network
performance. Major elements to feed an accurate and reliable 4D
trajectory prediction can be provided by the aircraft itself and shared inreal time.
The Company also focuses on the development of 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.
It is also working on disruptive practices like formation flying. In
November 2019, the Company launched the fello’fly project which aims
to demonstrate the technical, operational and commercial viability of
two aircraft flying closer together for long-haul flights. Through fello’fly,
the follower aircraft will retrieve the energy lost by the wake of a leader
aircraft by flying in the smooth updraft of the air it creates. This provides
lift to the follower aircraft, allowing it to decrease engine thrust andtherefore reduce fuel consumption in the range of 5-8% per trip. Further
research into wake energy retrieval (WER) and deployment of Conceptof Operations in the ATM environment is crucial to implementation in a
multi-country environment.
The current ATM environment based on static flight plans is evolving
towards Trajectory Based Operations (TBO) in order to improve airportand ATM Network performance. Major elements to feed an accurate
and reliable 4D trajectory prediction can be provided by the aircraft itself
and shared in real time. The results are projected to be reduced flightdelays, fuel burn and CO2 emissions via enabling Continuous Descent
Operations, reducing holdings and undue vectoring.
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 organises face-to-face forums and webinars every yearwith airlines to exchange knowledge on how to improve ground andin-flight operational efficiency and using latest technological solutions.
Namely, a “fuel efficiency forum” has been developed with representativesof the ecosystem including airlines, ATM, engine manufacturers, airports
and suppliers.

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Universal Registration Document 2023›› In November 2022, the SESAR 3 Digital Sky Demonstrator

project HERON, led by the Company, was kicked-off with
European partners including six airlines, eight ANSPs and five
airports. This 3-year project is expected to enable reduced
flight delays, and therefore fuel burn and CO2 emissions via
enabling Continuous Descent Operations, reducing holdings
and undue vectoring. Several months of application withmore than 1000 flights collected are expected to demonstrate
quick win ATM improvements.

›› In 2023, a European research project GEESE was granted

funding from SESAR to continue the work of fello’fly, with theambition to bring fello’fly into commercial service later thisdecade. Project aims to further refine the concept and its
integration into airline operations by the end of the decade.
Geese involves the collaboration of 16 partners and anadvisory board of selected industry leaders.

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

Strategic pathway 5

1

Encouraging temporary CO2 emission compensation schemes

Finally, CO2 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 scheme as the only global marketbased measure for international civil aviation.
The Company believes that direct air carbon capture and storage(DACCS) is a high-potential technology that could turn out tobe meaningful in carbon schemes applicable to aviation. As theaviation industry cannot capture CO2 emissions released into
the atmosphere at source, DACCS is one of the most promisingtechnologies to neutralise residual emissions. DACCS is designed
to capture CO2 emissions directly from the atmosphere using highpowered fans and store CO2 in underground reservoirs.

Non-CO2 impacts
While non-CO2 emissions of aviation have become an increasingly
publicised topic in 2023, the topic is not new for the industry.
The Company has been actively engaged in research to support
the scientific community in better understanding the impact
of non-CO2 emissions on the climate as well as in evaluating
and deploying technological mitigation solutions for almost
20 years. Aircraft engines produce direct emissions linked to
the fuel combustion and indirect emissions formed in its wake.
Those emissions, which have an impact on climate when flying
in high altitudes, include carbon dioxide (CO2), nitrogen oxides(NOx), water vapour (H2O), nvPM (non-volatile particulate matterof black-carbon or soot), sulphur oxides (SOx) and condensation
trails. Depending upon prevailing weather conditions, altitude
and geographical location, non-CO2 emissions can change thechemical composition of the atmosphere and the cloudiness,
which in turn affect the climate. CO2 emissions contribute toincreased atmospheric CO2 concentrations, which induce a low
and positive radiative forcing, but with cumulative effects dueto the long lifetime of this greenhouse gas in the atmosphere.
Non-CO2 emissions do not have the same cumulative effect as
CO2. Non-CO2 forcers such as contrail-cirrus and NOx are shortlived components that have stronger, but time-limited effects.
Uncertainties are still high on the exact impact of non-CO 2
emissions of aviation. Lee et al. 2021 states that uncertainties
around the contribution of non-CO2 emissions on aviation’s net
effective radiative forcing (ERF) are ~8 times higher than thoseof CO2.
Non-CO 2 emissions can have both positive (warming) andnegative (cooling) radiative impacts. In particular, contrail-cirrus
can have cooling or warming effects depending on several
factors such as their location and time of generation, spatial
coverage, lifetime, or optical properties (ice crystal size, shape,density), though the effect at night is exclusively warming.
The Company is actively working on a large portfolio of
projects focused on increasing the understanding of non-CO2
emissions generation, their evolution and their climate effects,
but also to evaluate and develop solutions covering several
promising mitigation options impacting three well-identified
domains: through the use of new energies such as SAF orhydrogen, enhanced engine technology and flight operations(implementation of operational/ATM measures). These include:–– On SAF, the ECLIF3 and VOLCAN projects included a German
Aerospace Center (DLR)’s Falcon aircraft, flying within 100m
behind the Company’s test aircraft fuelled with various types of›› In 2022, the Company partnered with 1PointFive and pre-purchased

400,000 tons of carbon removals (see Offset Strategy above). In
2023, the groundbreaking ceremony took place on the 28 April
2023 in Texas, US.

It also invested in Carbon Engineering Ltd., a Canadian-based climate
solutions company, operating the largest Direct Air Carbon Capture(DACC) Research & Development facility in the world.

›› After the successful use of Direct Air Capture (DAC) technology
designed by the Company and the European Space Agency to
scrub carbon dioxide from the air aboard the International Space
Station, the Company’s innovation acceleration unit Airbus Scalebegan investigating how the technology could be scaled andapplied on land to industries that consume or produce CO2 in theirproduction processes, such as capturing and converting CO2 into
fertilisers, fuels and carbon negative materials.

SAF (from 30% blend up to 100% SAF, with different aromatics
and sulphur content), to capture and analyse in-flight data.
The preliminary observations show a positive impact of SAF
on aircraft emissions, and are expected to be published inpeer-reviewed scientific literature in 2024.
–– On hydrogen, the Company launched Blue Condor in 2022,
a demonstrator taking a modified glider up to 33,000 feet toanalyse hydrogen combustion’s impact on contrail properties.
The result of this analysis will provide critical information on
aviation’s non-CO2 emissions, including contrails and NOx, inadvance of the ZEROe demonstrator flight testing.
–– On operational measures, the Company launched in earlyJuly 2023, the CICONIA project in the context of the SESAR 3
Joint Undertaking. This project gathers 16 partners including
major airlines and air navigation service providers. It will run
for three years with the objectives of improving weather
forecasting capabilities, improving climate impact assessment,
defining a climate-optimised concept of operations and triallingsystem solutions at aircraft and air traffic control level. The
project brings together experts and partners from climate
science, meteorological institutions, airlines, manufacturers
and air traffic control to focus on effective and operationally
viable solutions to aviation’s non-CO2 emissions.
In addition, the Company actively contributes to several
international working groups and external conferences on
non-CO2, including those aimed at defining the future European
Monitoring Reporting and Verification (MRV) scheme.

Product resilience in the context of climate change
Aircraft products are sensitive to weather phenomena during
their operation phase. The adaptation of aircraft design andoperation to the changing climate is therefore an important
activity to be anticipated, in particular given the long lead timeassociated with aircraft development and operation. EASA has
recently launched an industry working group under the nameEuropean Network – Impact of Climate Change on Aviation(EN-ICCA) with the objective to define a work programme toensure continuous progress in enhancing adaptive capacity,strengthening resilience and reducing vulnerability to climatechange for the aviation domain, in which the Company is fully
engaged.
In addition, more specifically with regards to its defence productportfolio, the Company is collaborating with the North Atlantic
Treaty Organization (“NATO”) and other defence industry players
and organisations (in the so-called NATO Study Group 291)
with the objective of developing recommendations on ensuring

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allied capabilities adaptation in the context of climate change.
This is supported by inputs from the NATO Climate and Defence
Task Force lead by the Conference of National Armaments
Directors (CNAD) the Company is also part of, together withthe allied governments and other defence industry players.
This collaboration aims at assessing, elaborating and deploying
solutions to ensure technical capabilities still enable operational
effectiveness in facing changing climatic conditions.

Products and services supporting climate monitoring
and adaptation
Climate change-related disasters are set to become more intense
and frequent. This will require immediate action from rescue
teams for whom the Company’s products play an importantrole. For instance, the Company’s helicopters are used by publicauthorities around the world in missions linked to disaster risk
management, including medical evacuation, search and rescue
or firefighting operations. In 2022, around 20% of delivered
helicopters were equipped for such missions.
The Company’s military aircraft platforms can play a crucial rolein the protection of populations from natural disasters, suchas for example during the aftermath of the fires at La Palmain Spain in July 2023, when an A400M urgently transported
personnel and vehicles of the Spanish Military Emergency Unit.
In December 2023, a new version of the A400M Roll-on/Roll-off
firefighting prototype kit was successfully tested. It is improving
dropping efficiency and reducing discharge time by over 30%
compared to last year, while combined with rapid deployment
and easy installation on the A400M aircraft.
The Company’s fully solar-powered Unmanned Air System (UAS),
Aalto Zephyr, is able to fly for an extremely long time – 64 days
nonstop is the current record with plans to fly for months at atime. Combining the persistence of a geostationary satellite withthe manoeuvrability of a traditional aircraft, Aalto Zephyr can
provide communications services to remote areas or be used
for land, coastal or border protection, wildfire monitoring, crop
monitoring, land administration or environmental monitoring.
The Company’s space products also play an important rolein the understanding of climate phenomenon and monitoringof their evolution. Today, 20 of the Company’s satellites are
involved in climate change monitoring and an additional 20 are indevelopment. As climate adaptation entails preparing for natural
disasters, this critical geospatial data enables the Company todeliver data that helps governments and humanitarian agencies
predict and manage disasters. Earth-observation satellites allow
the monitoring of deforestation, rising sea levels and greenhousegas emissions in the atmosphere. The Company is involved in all
major environment-monitoring satellite programmes in Europe(Copernicus, Living Planet) and plays a key role in all 12 of theCopernicus missions, the EU’s Earth Observation Programme.
For instance, Sentinel-6 is part of the EU’s Copernicus programme
and was built by the Company as prime contractor. It maps theocean’s surface, measuring global sea level rises and ocean
circulation. Sentinel-6 data helps governments and institutions
to establish effective protection for coastal regions, and helps
scientists improve weather forecasts and hurricane predictions.

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The CryoSat-2 is an environmental research satellite that provides
scientists with data about the polar ice caps and tracks changes
in the thickness of the ice. It was constructed by the Company(EADS Astrium). Polar-orbiting Earth observation satellites
can perform short-term weather forecasting and long-termclimate monitoring, such as detecting storm movements anddevelopments, cloud systems, snow cover, and ice mapping.
There are currently two MetOp-SG polar-orbiting satellites (Aand B) being developed and built under the industrial lead of
the Company, scheduled to be launched in 2025. Furthermore,
GRACE Follow-On (GRACE-FO), a twin satellite developed
and built by the Company, monitors changes in undergroundwater storage, the amount of water in large lakes and rivers, soil
moisture, ice sheets and glaciers, and sea levels.
In 2023, the Company has progressed on the development andtesting of new technologies that will be featured on biomass, thefirst ever satellite that will report how much CO2 is captured by
the world’s forests. The spacecraft will deliver accurate maps oftropical, temperate and boreal forest biomass and changes in thebiomass stock that are not obtainable by ground measurement
techniques. In arid areas of the planet, it will see through to theunderlying bedrock, enabling mapping of the rock structureand search for subterranean reservoirs of water. The satellite
is currently in Toulouse for final testing ahead of its expectedlaunch in 2024.
Upcoming missions also include EarthCARE, monitoring theimpact of clouds and tiny atmospheric particles (aerosols) on
atmospheric radiation; Merlin, studying greenhouse gases andglobal warming; and Microcarb, measuring CO2 levels.
The Company’s satellite-based services Farmstar, co-developedwith Arvalis Institut du Végétal with the support of Terre-Inovia,
help support a more sustainable agriculture. It provides acomplete range of advice for wheat, barley, rapeseed andrapeseed companion plants at intra-field scale, all aligned withthe crop cycle. This minimises farming impact on the environmentby using only what the plant really needs. 700,000 hectares are
currently monitored in France, for 14,000 farmers.
The Company’s Pléiades Neo constellation delivers precisioninsights to help farmers cultivate their fields more sustainably inthe context of a changing climate. Pléiades Neo’s Red Edge band
makes it possible to accurately predict and pinpoint subtle stresssituations in crops long before the problem can be detected withconventional vegetation indices or even the human eye. This
information will allow farmers to assess the root cause of the
problem and take remedial action before the ailment spreads
or crops are lost, enabling more effective climate adaptation.
The Starling digital platform, developed by the Company with
the non-profit Earthworm Foundation, uses a combination offorest cover change analytics and satellite imagery to support
agro-forestry businesses, public institutions, local authorities,
NGOs, academics and research. Starling can show 20 yearsof historical data and trends and currently covers more than
5.8 million km2. Since 2016, Starling has generated more than
2 million alerts and utilised more than 180,000 images.

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

1

Investing in the future
The Company is investing in and accelerating its efforts on five complementary strategic pathways to reduce its environmental
footprint, in support of the overall sector ambition, as highlighted above. Overall, a major portion of the Company capital expenditures(CapEx), research & technology (R&T), and research & development (R&D) expenses is linked to its commercial aircraft activities
and the realisation of these five decarbonisation pathways. In 2023, the total R&D spend of the Company amounted to € 3.3 billion(2022: € 3.1 billion).

Progress and performance
In 2023, the Company delivered 735 commercial aircraft. Of these 735, the emissions of three A330-200 aircraft destined to A330
MRTT production are excluded from the commercial aircraft perimeter and included in the military aircraft perimeter as part of the“other products” category. Based on an average life-time in service of around 22 years (average life-times specific to each aircraft
type were used in the calculation), and SAF uptake assumptions as per IEA-SDS scenario (ETP2020), the total CO2 emissions
for these products over their anticipated life-time is estimated at around 464MtCO2e, which translates to an average efficiency of
62.9gCO2e per passenger-kilometre. In 2022, the Company delivered 663 aircraft with resulting estimated life-time emissions ofaround 425MtCO2e and average efficiency of 64.4gCO2e per passenger-kilometre.
100
90

88.8

80
70

62.9

60

Target

50
40
30
20
10
0
2015

2020

Linear extrapolation to target

2025

2030

2035

Actual deliveries' average lifetime efficiency

The Company estimates that products delivered in 2023 will
see their life-time emissions reduced by around 15% thanks
to the gradual introduction of SAF during their operational life.
For all reported Scope 3 figures and performance metrics, see“– 1.2.17 ESG Data Board”.
Efficiency metric (SBTi-validated target) – Since 2015,
commercial aircraft scope 3 efficiency measured through thismetric has improved by 29.2%, largely supported by significant
investments into new aircraft technology and designs, as well
as by projected SAF uptake impact to a lower extent. Given
the variable time horizons of each of the five decarbonisation

pathways presented above, it is expected that the increase of
SAF used by airlines in the coming decades will have a decisive
impact for achieving this -46% target by 2035. In order to beable to check how actual global penetration of SAF is consistent
with its target related assumptions, the Company is developing
the means to monitor actual availability of SAF and the resulting
impact on aircraft emissions. This will take the form of a toolthat aggregates public commercial data and processes it with a
combination of artificial intelligence and rule-based calculations.
The model is currently being tested, and expected to enable thefirst reliable results in 2024.

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3. Supply chain engagement
CDP Engagement
Suppliers responding to CDP questionnaire

Target2023 Performance

Maintain at least 75%
of sourcing volume (based on year-1 turnover)

80.1%+5.1p.p vs. target

While the greatest contribution from the Company’s supply
chain to decarbonisation will be the capacity of its suppliers toaccompany the development and delivery of technical solutions,
getting its whole supply chain operations engaged in thetransition towards a low carbon economy also remains a priority.
Scope 3 Purchased goods and services. GHG emissions
arising from the goods and services the Company purchases(Scope 3 – Purchased goods and services) based on its 2022
spend amounted to 10,325 KtCO2e (2023 data will be available laterin 2024). This evaluation was performed based on a methodology
developed by the International Aerospace Environmental Group(IAEG). This methodology is expected to be continuously refinedin the coming years. See methodology details in “– 1.2.17 ESG
Data Board / Environmental performance”. While this method
includes a certain degree of uncertainty – considered high by the
IAEG on a certain number of emissions factors used – it provides
a broad view of the sources of GHG emissions in the Company’s
supply chain and enables comparison of the Company’s various
scopes throughout its value chain.
CDP (formerly Carbon Disclosure Project). In addition, theCompany considers a CDP score as a relevant indicator forassessing the maturity of its suppliers to address climate change,
and requests its main suppliers to respond to the CDP Supply
Chain programme on an annual basis. In 2023, it continued
engaging with suppliers representing 83.2% of the Company’s
total sourcing volume, following which suppliers representing
80.1% of the Company’s sourcing volume have completed the
CDP questionnaire. The scores for the year 2023 were notavailable at time of publication.

4. Employee engagement
Contribution of Company culture and employee
engagement to climate objectives
Success can only be collective and the engagement ofeach and every employee is necessary. Environmental
targets and objectives, including the ones related to climate(scope 1&2), are internally promoted under the label high5+.
Periodic communication campaigns are led using different
communication channels, such as posters and the intranet. In
addition, climate-related objectives are part of the Company Top
Company Objectives (“TCOs”). In the process of being cascaded
to functions and teams, TCOs trigger discussions where teams
reflect on how and to what extent they can contribute and set
meaningful objectives. Furthermore, a dedicated section in the
Company’s intranet provides information about the Company’scommitment towards climate, and related action plans areavailable for employees to expand their awareness. On the training
platform, e-learning in relation to climate, such as “climate crisis”,“climate science”, or “climate change economics”, are freely
available to employees while one environment-related e-learning
has been included since 2022 in the Company yearly training
plan, applicable to all employees to develop their awarenessand also help them understand how their work can impact theenvironment. From October 2022 to September 2023, some
29,437 employees were trained in environmental awareness. In
addition, 7,556 employees followed the “climate fresk” training.

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The Company established a global sustainability ambassadors
network in 2021 which has continued to flourish, onboarding
811 ambassadors from across 18 functions and 20 countries.
Ambassadors help to foster sustainability culture and awareness,engage their local teams in various initiatives, and support the
adoption and integration of sustainability objectives into thebusiness, including climate and communities. During the year,
ambassadors engaged in seven sustainability action events on
topics such as materiality assessment, SBTi awareness, giving
feedback on the Company’s sustainability communications
approach, and sustainability culture change. The Company’s
annual Sustainability Townhall was an opportunity to highlightand recognise the engagement of the Ambassadors throughthe Company’s first Sustainability Ambassador awards. 80
nominations were received across four categories, highlighting
best practice in Governance – national and functional approaches,business integration, and awareness and engagement.

Incentivised remuneration
In order to better embed this ambition into the Company’s
performance management, CO2 performance targets have been
included in variable remuneration schemes since 2021 (See“– 1.2.1 The Company’s approach to sustainability / Governance”).
Such short-term incentivisation enables to accelerate thetransformation of the Company and cultural shift. The Executive
Committee agreed in 2022 to include a reduction target inabsolute value at 687kt CO2e for 2023 (or -0.9% vs. 2022), for
CO2 Scopes 1 & 2 (TCO scope, see above), part of the Top
Company Objectives. The 2023 target was overachieved withan actual performance of 593kt CO2e or -15%. This target was
set in absolute value at 581kt CO 2e for 2024 (or -3% on the2024 extended TCO scope). In addition, when relevant, thetransposition of TCOs into individual or team objectives may
impact the variable remuneration of concerned employees, suchas engineers working on decarbonisation-related projects, or
employees working on the Company’s industrial decarbonisation
roadmap.

Competence management and employability
The Company’s transition plan largely relies on technology
and innovation. Anticipating, developing and securing requiredcompetencies will be decisive, both for the Company to be able todeliver on its commitment and for employees’ skills to be adapted
to a changing world. Due to the significant impact of lower-carbon
aviation and eco-design (product) on its business, the Company
estimates that at least 50% of engineering profiles will have to
be upskilled by 2030. “Clean and Sustainable Aerospace” isidentified as one critical skill group in the Company’s competence
strategy. Specifically, identified skills requiring priority action are:hybrid propulsion, electrical high voltage, hydrogen, cryogenics –directly related to decarbonisation innovation – as well as supply
chain environmental impact analysis or eco-design.
Today the Company experiences a tension between the industry
needs and the offer from both the employment market and H2
learning market. Also the aeronautic field’s attractivity is a key
success factor to recruitment plans. To cover this situation a H2
talent ecosystem must be developed through partnerships with
universities, schools and research laboratories.

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1.2 Non-Financial Information

Dedicated learning paths are also being developed and deployed
under the leadership of academies in the Company functions.
In addition, when needed, targeted external recruitments will
enable the Company to align its workforce skills with its businesschallenge.

5. Engaging the ecosystem
Cooperating with the scientific community
and universities
Climate change is a critical challenge for humanity, and theCompany believes innovation and technology can makesubstantial contributions to the solution. Achieving this common
goal will require all forces from the scientific community to bejoined. Hence the Company participates in a number of research
programmes worldwide; it is committed to sharing acquired
knowledge that could help accelerate the progress of science.
For instance, the Company is collaborating with the DLR in
Germany, Manchester Metropolitan University in the UK, with
the ONERA or the Montpellier Business School in France, theDenmark Technical University in Denmark, the Massachusetts
Institute of Technology (MIT) in the US, the Tsinghua University
in China or the European Joint Research Centre. The Company
also created the CEDAR “Chair for Eco-Design of Aircraft”
together with ISAE-SUPAERO (French aerospace engineeringschool) in 2013. This five-year chair aimed to define disruptive
concepts in air transport by introducing, from the start of thedesign, innovative technologies. In 2019, the partnership was
renewed and adopted the main learnings of previous years
all while integrating a more comprehensive environmental
engineering approach. The CEDAR Chair is composed ofinternational scholarships, interdisciplinary programme ofstudent projects derived from concrete industrial cases in thefield of “Future Aircraft Design”, and environmental engineeringcertificate with focus on the issues of sustainable development,
offering an approach to design aircraft over the entire productlife cycle, addresses eco-mobility and the economics of airtransport. It also provides a research component that focuses ontechnological developments that will improve the implementationof air transport solutions, making it possible to reduce the global
ecological footprint.

Engaging with policy makers
Leveraging on its unique understanding of aerospace industry
specificities, the Company is engaged in a constant dialogue
with policy makers, directly or through trade associations. Suchengagements are performed in compliance with the Ethicalbusiness conduct principles described in section “– 1.2.14
Business Integrity”, the Company’s Code of Conduct and theCompany’s Responsible Lobbying Charter.
In 2023, as a member of the industry association International
Coordinating Council of Aerospace Industries Associations(ICCAIA) through the ASD, the Company actively participatedin the International Civil Aviation Organisation’s (ICAO) work to
define guidance, standards and recommended practices aimed
at minimising emissions from aircraft and engines, as well as
defining policies with regards to local air quality, climate change,
and noise. Specifically, in 2022 the Company has been an active
member supporting the adoption of a climate “Long Term
Ambitious Goal” to the ICAO 41st assembly. At European level,
the Company has engaged with the EU Commission on climatechange policies discussions such as the “ReFuel EU” initiative aspart of the “Fit for 55” regulatory package. At the national level,
the Company has engaged with France, Spain, UK and Germany

1in order to exchange on federal policies on climate change.
In particular in its home countries France, Germany and theUnited Kingdom, the Company has cooperated with the CORAC(Conseil pour la Recherche Aéronautique Civile), LUFO (German
Research Programme “Luftfahrtforschungsprogramm”) and ATI(UK Aerospace Technology Institute) respectively on research
for technology, fuels and non-CO2 emissions. As well, in 2023
the Company has directly discussed with the EU Commission
supporting the development of a carbon removal framework withhigh environmental integrity in Europe. The Company’s positions
on climate-related topics are consistent with the principles andaxis of the transformation described in its transition plan, where
it considers that emerging regulatory frameworks could be adecisive enabler.

Other initiatives
The Company is also engaged in a number of initiatives: where
impactful and connected to its know-how, the Company
engages in various projects with local communities or partners,
and develops projects beyond its immediate core business that
could generate meaningful CO2 savings.
Scope 3 commuting – In 2022, in partnership with Toulouse
Métropole, Tisséo (the local transport authority) and Sopra-Steria,a smartphone application called Ecomode was developed toincentivise the shift to collective commuting (e.g. public transportand car sharing) or low-carbon individual mobility modes (e.g.
bicycles). This has been deployed amongst employees in Toulouseand is of potential benefit to the citizens of all 37 municipalitiesof the Toulouse Métropole. Such an initiative benefits both theCompany and the whole local community. At site level, cycling
to work is encouraged by improved infrastructure, cycling paths
made safer in collaboration with local authorities, and periodic“cycle to work” events organised. Car parks are being equippedwith charging devices to encourage the use of electric cars,
and Company car policy has evolved in order to incentivise theselection of low-carbon vehicles by collaborators.
Climate adaptation, supporting local communities – Throughits Community Impact Policy – including corporate activities
and its non-profit arm the Airbus Foundation – the Company iscommitted to support vulnerable communities through disaster
response at a time when climate-related catastrophes are getting
more intense and frequent. The Company works in collaboration
with local knowledgeable associations, as well as with partners
that have a global reach. Support can take the form of impact
investments or provision of access to Company’s products andservices, for example, providing satellite imagery for partners
to properly assess a disaster’s scope and adapt their responseplans. The Airbus Foundation chartered helicopter hours to
respond to the wildfires in Chile, and provided satellite imagery
to the International Union for Conservation of Nature (“IUCN”)
as part of a 3-year reforestation project. The Company also
saw a rise in requests to support projects linked specifically towater access in vulnerable communities which are impacted
by climate change and changing weather patterns. The
Company and the Airbus Foundation respectively partneredwith organisations in the Philippines and Kenya on projects
which have collectively created access to clean water for 20,000
community members. A 3-year agreement was also signed toequip two indigenous communities in Australia with water accessthrough infrastructure, maintenance plans and training, withthe project due to commence in 2024. (See Chapter “– 1.2.16
Community Impact” for more information).

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1.2 Non-Financial Information

1.2.3 Pollution
I.

Introduction

Linked to the industrial nature of its operations, the Company
strives to reduce any potential impact of its activities on thenatural environment in compliance with applicable standards,
laws and regulations. As covered in this section, pollution includes
air pollution (beyond GHG, see “– 1.2.2 Climate change”), soil
pollution, water pollution (surface and groundwater) and noise
pollution caused by the Company’s activities and value chain.
Pollution linked to the emission of volatile organic compounds(VOCs) is a primary focus of the Company, as it may arise fromaircraft painting and cleaning activities. Light pollution has been
deemed to be non-material to the Company’s value chain.
Pollution may impact the Company primarily through the potential
consequences of business disruption arising from constraints
on activities in the Company’s value chain in case of any local
pollution peaks, for instance. Potential unmanaged pollution risks
could also disrupt the Company’s ability to operate, e.g. deliverits products to customers or imply depolluting costs.
Overall, the Company’s compliance with applicable standards,
laws and regulations is part of the operating licences granted
by local authorities. In this regard, the Company is subject

to multiple regulatory provisions, including those of the EU
Industrial Emissions Directive (IED). The IED notably applies
to the management of the Company’s industrial activities inFrance, Germany and Spain. This Directive requests operatorsof certain installations to establish the state of soil and surface
and groundwater contamination at the start of operations,apply for a permit that includes conditions to prevent pollution
through application of the best available techniques, andtake necessary action upon definitive cessation to returnthe site to its initial status. Beyond this Directive, the law
on soil management is covered under several national texts
which may differ from one country to another, as well as in
the permits issued for the Company’s industrial activities.
Specific regulations cover the topic of chemical substances,with the main regulations covering the Company’s activities
and products being Registration, Evaluation, Authorisation andrestriction of Chemicals (REACH); Restriction of Hazardous
Substances (RoHS); Persistent Organic Pollutants (POP); andBiocidal Products.

Pollution

GRI

Highest governance body(ies)involved

Board of Directors / ECSC
Executive Committee / Environment Committee

Related corporate policies

Environmental Policy, Code of Conduct

Management system
Relevant certifications

EMS – Environmental Management System
ISO 14001 – 87% of workforce covered

SASB

SDGs

305 – Emissions

9-12-13-17

KPIs
Air emissions:2030 Target

2015
Baseline

2022

2023

2023
vs. 2022

2023 vs.
Baseline

VOC (tons)

0% increase

1,480

1,098

1,103

+0.4%

-25%

2022

2023

2023
vs. 2022

NOx (tons)

212

179

-15.5%SOx (tons)

17

17

+1.0%

Other key metrics

94

OthersKPI assumptions

2023 VOC emissions data is estimated. 2023 actuals will be consolidated in April 2024.

Additional resources

Environmental Policy Statement , Sustainability on Airbus.com

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

II. Governance
The Airbus Environmental Policy and overall governance, as
described in “– 1.2.2 Climate Change” apply to this topic.

III. Risk Management
Environmental risk and opportunities are managed following theCompany’s ERM system, see section “– 1.2.2 Climate Change”.
Substance-related risks are included in the Company’s top risks,
as reported in “Risk Factors”.
In addition, the Company’s ISO14001 certified EMS notably
applies the standard recommendations for pollution
control audits, training, risk assessment and identification,
implementation of risk prevention procedures (emergency
plans, simulation exercises). For example, sites shall conduct
an analysis of environmental aspects and impacts at least every
three years, as well as each time a material change in operations
occurs, also in connection with the Company’s ERM process.
While the EMS sets requirements, actual deployment, concretemeans and measures are managed at site level and adapted
to the nature of a site’s industrial activities and to applicableregulations. For instance, in Toulouse and linked to flight test
activities, concerned employees systematically follow dedicatedtraining sessions, including on instructions for fuel handling oron procedures to follow in case of an incident. Also, each year,
more than five spill-related emergency situations (e.g. a kerosene
leak or a fire-fighting water spill) are conducted to test defined
emergency plans. At least one emergency situation is performedin coordination with local authorities.

IV. Implementation / activities
Air emissions
Air emissions – primarily referring to VOC emissions related tosurface treatment – are mostly impacted by the number of aircraft
deliveries. Regulated substance substitution may also lead tothe use of new chemicals of less concern with VOC emissions
which need to be monitored. Overall, in 2022, emitted VOCs
increased 7.5% year-on-year, reflecting the increase in aircraft
production rate compared to 2021.

Chemical substances
Many chemicals used in the global aerospace industry to achieve
high levels of product quality and meet stringent technicalperformance, airworthiness and reliability requirements are
subject to strict regulations. These regulations impact key
processes and products, such as surface treatments, paints
and fire protection.

1

The Company remains committed to replacing such substancesin its products and processes. To help achieve this, it has put inplace a portfolio of activities and projects, working with suppliers
to identify, develop, qualify and deploy new technologies andsolutions that avoid the use of substances classified as posing
a risk to human health or the environment, while still satisfying
airworthiness, certification and performance requirements.
The Company also engages with suppliers to promote theadoption of a similar approach through regular communication
and, 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.
Using information obtained from its own design and suppliers,
the Company tracks, records, assesses and declares regulated
chemicals and materials. Since 2011, the Company has analysed
the impact of over 1,100 regulated substances, and qualified anddeployed substitutes for over 100 substances in 300 products.
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
and progressively deploying on all its new aircraft, 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 substances family, used in the fire extinguishingsystems in engines and cargo areas. Several fire extinguishingtechnical solutions are now being tested on aircraft in flight
conditions, with an objective to roll them out into production
from 2027.

Noise
Noise around the Company’s sites can also be an important
topic for neighbouring communities. The Company is actively
engaged with local authorities to minimise its impact by, forinstance, adapting operating times. In Toulouse, the Company
has launched the Median initiative, regrouping actors in chargeof flight activities around the airport to find the most effective
solution to reduce noise levels. It is also actively seeking to
reduce the noise at the source, by developing products andtechnologies striving to minimise such impact, while certification
authorities have also set stringent noise-related criteria.

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

1.2.4 Materials and circularity
I.

Introduction

The Company recognises the challenges associated with
depleting natural resources. This section covers its approach
towards optimising the use of materials end-to-end – including
product life cycle, eco-design, circularity, and end-of-life
considerations – with a focus on waste when it comes to its own
industrial operations. The Company identified three materials
for which this approach is especially meaningful as they are
essential to aircraft manufacturing: aluminium, titanium, andcarbon fibre-reinforced plastics (“CFRP”).
While aerospace represents a small fraction of the global volumes
for most materials – e.g. the Company’s aluminium consumption
is estimated to be about 0.1% of the global market – it is among
the main users for some highly specialised materials such astitanium or CFRP. The use of these materials, and the impacts
associated with their production or end-of-life, are justified bytheir contribution to the efficiency of the end product, as they
enable lighter structures and more efficient design. As morethan 90% of a typical aircraft’s life cycle impact comes fromits operational use phase, using lighter materials (which aresometimes more impactful in their production processes) is
particularly effective in regards to achieving significant reductions
in energy consumption and emissions overall. Product weightMaterials and circularity

Additionally, these materials can pose unique challenges interms of supply, application and recycling. Addressing this topic
requires an engagement and coordination with the end-to-end
value chain, from the extraction stages to the eventual disposal
or recycling. Of note, the human rights aspects that may be linked
to the sourcing of materials, including conflict minerals, as wellas the potential environmental impact linked to their extraction
and processing are covered in sections “– 1.2.10 Human rights”
and “– 1.2.15 Responsible Supply Chain”. A number of related
regulations affect the Company globally, regionally and locally,such as the Basel Convention on the Control of Transboundary
Movements of Hazardous Wastes and their Disposal, or the EU
Waste Framework Directive.
All considerations for optimising material use shall also, under nocircumstance, be detrimental to product safety and shall meet
all technical requirements from stringent certification standards.

GRI

SASB

301 – Materials
306 – Waste

SDGs

Hazardous Waste Management

Others9-12-13-17

Highest governance body(ies) involved

Board of Directors / ECSC
Executive Committee / Environment Committee

Related corporate policies

Environmental Policy, Code of Conduct, Human Rights Policy

Management system
Relevant certifications

EMS – Environmental Management System
ISO 14001 – 87% of workforce covered

2030 Target

2015 Baseline

2022

2023

2023
vs. 2022

2023 vs.
Baseline-20%

107,51374,443

77,208+3.7%-28.2%

Other key metrics (More metrics and assumptions,see “– 1.2.17 ESG Data Board”)

2022

2023

2023
vs. 2022% Material recovery rate

61%

60%

-1p.p.

% Energy recovery rate

18%

19%

+1p.p.

KPIs
Waste produced
excluding exceptional waste (tons)

Additional resources

96

optimisation is largely linked to product performance in termsof range and fuel consumption, and therefore has a benefit forcustomers. Optimising the use of such high-value materials isdirectly linked to the Company’s competitiveness, while securing
their supply, as they become scarcer, is necessary to ensurebusiness continuity.

with no landfill or incineration
without energy recovery

Environmental Policy Statement , Sustainability on Airbus.com , Tarmac Aerosave

II. GovernanceIII. Risk management

The Airbus Environmental Policy and overall governance, as
described in “– 1.2.2 Climate Change” apply to this topic. At
the operational level, a multi-functional team leads this activity.
Additionally, this was complemented at the end of 2021 for theCompany’s commercial aircraft activities by a specific crossprogramme forum that reviews, prioritises, and budgets waste
or inventory-related initiatives.

Environmental risk and opportunities are managed through theCompany’s ERM system. See “– 1.2.2 Climate Change”.

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

IV. Implementation / Activities
The Company’s products make efficient use of these materials
by being designed to operate for several decades with highutilisation rates, being highly serviceable and repairable, andultimately allowing for around 90% of their constituents by mass
to be recovered, including recycling. The Company promotes
the development of a circular economy model, and is proactive
in seeking ways to recover, reuse and recycle materials beyond
their initial life. Overall, in order to minimise the impact of its
activities, the Company’s strategy relies on the approach:
avoid; reduce, reuse-recycle-repair, supported by a number ofenablers such as measuring, Life Cycle Analysis (“LCA”) andeco-design, or digitalisation.
Metallic waste accounts for more than 30% of the Company’s
waste (excluding exceptional waste). Considering the risk ofresource depletion versus growing demand, the Company
has kicked off in 2022 and progressed in 2023 a dedicatedtransformation project related to the circularity of critical raw
materials, especially non-ferrous metals, with a focus on themost material perimeter, its commercial aircraft activity.

Avoid – Material Use Optimisation
Weight reduction through material use optimisation has always
been a priority in aerospace, as this is directly linked to aircraft
performance. Lately, the development of new technologies suchas additive layer manufacturing (ALM or “3D printing”), including
for metallic components, enabled the redesign of parts, resulting
in significant improvements by limiting material consumption towhat structure and resistance require. For example, 3D printing
technologies such as direct energy deposition (DED) can reduce
the titanium raw material consumption by up to 70%. Moreoptimised design and manufacturing processes for metallic andcomposite components can improve the buy-to-fly ratios, as well
as reduce weight, material consumption, energy consumption
and production costs. For instance, forming technology has
led to an aluminium material reduction of 80% for some parts
compared to machining from a plate.

ReduceIndustrial waste
Waste from industrial activities represents about threequarters of the total waste generated by the Company’s sites,
the remaining portion being waste generated in offices andcanteens. The Company also focuses on the waste generated
by its sites throughout the manufacturing process and has set
an objective of reducing these overall waste amounts by 20%
by 2030 from a 2015 baseline, including 0% landfilling and 0%
incineration without energy recovery. The Company industrial
waste is mainly composed of metallic waste, general waste,chemical waste and packaging waste.
A dedicated multi-functional team with skills from across theorganisation such as engineering, information management,
procurement, industrial operations and facility management is
actively working on a waste reduction roadmap. Over the past
years and including in 2023, the Company has focused onmetering and on data robustness and accuracy for measuring
waste, with a focus on standardising the practices towards
waste collectors and in line with regulatory requirements
for greater traceability. The objective is to enhance data
monitoring, reporting and forecasting capabilities in order tosteer efforts through sites on waste management. This includes

1

a harmonisation of definitions, processes and assumptions.
Priority has been given to commercial aircraft activities due tothe industrial ramp-up.
In 2023, non-exceptional waste increased by 3.7%, largely
explained by the commercial aircraft production ramp up. The
proportion of the non-exceptional waste landfilled or incinerated
without energy recovery amounted to an estimate of 21%.

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
a priority, this is a topic also driven by regulation, the evolution ofwhich may impact the roadmap’s ambition for reducing waste aswell as its timing (see Chemical Substances section in “– 1.2.3
Pollution”).

Increase the lifespan of components
A large part of the Company’s aircraft products components aredesigned to last for the aircraft service lifetime, which exceeds
20 years on average. Some components, called life-limited parts(“LLPs”), have a lifetime which is limited by design for safety
related reasons and need to be replaced at specific intervals
based on the aircraft age and usage.

Repairability – reuse – second life
With regards to LLPs, easy replacement and availability of parts
over the whole programme lifetime are a priority. The Company’s
products are designed to be repaired when damaged by anumber of maintenance, repair and overhaul (MROs) companies
worldwide and spare parts providers. The Company’s aftersale activities include the sale of spare parts and the provisionof maintenance, repair and overhaul services. LLPs can be
overhauled to serve other operators, routes or missions. In
particular, passenger-to-freighter conversions are frequently
considered to extend the lifetime of aircraft.

Recycling
Waste generated by the Company’s industrial processes often
includes high-value materials, so optimising their circularity
responds to both environmental and economic objectives.
The Company sends over half of its waste to be recycled. It
is currently working on specific initiatives to further increase
this rate, such as specific loop creation for titanium in orderto reintegrate chips or end-of-life parts into raw material
manufacturing processes.
In addition, the Company sources material volumes of recycledmaterials that are used for the manufacturing of aircraft. As anorder of magnitude, in 2023 around 40% of aluminium products
delivered to the Company (main structural material in an aircraft)came from recycled material.
Finally, the EU-funded PAMELA project, for Process for Advanced
Management of End of Life of Aircraft, demonstrated in 2007
the possibility of recycling up to 85% of plane components.
More recently, according to TARMAC Aerosave, a joint-venturein which the Company is a shareholder, now more than 90% of
an aircraft’s weight can be recovered at end-of-life (including
material and energy recovery) through a selective dismantlingprocess. For example, TARMAC Aerosave, provides such
reverse manufacturing services, including dismantling, sorting,

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1.2 Non-Financial Information

packaging for reuse or sending to relevant waste collectors
while managing parts traceability. In 2023, the Company,
Tarmac Aerosave and the City of Chengdu established a joint
venture for the first aircraft “lifecycle” services centre in China.
The new facility will cover a range of activities from aircraft
parking and storage, to maintenance, upgrades, conversions,dismantling and recycling services for various aircraft types.
Overall, TARMAC has provided dismantling, recycling anddisposal services in respect of over 300 decommissioned
aircraft since 2007.

Lifecycle thinking and conscious design
The Company invests in lifecycle assessments (LCA) for
environmental impact accounting associated with a specificproduct, in accordance with the requirements specified in the
ISO14040 standard. LCA studies have been finalised for allcommercial aircraft products delivered in 2023.
In addition, the Company is deploying frameworks enabling
environmentally-conscious design choices to reduce thefootprint of projects and optimise aspects such as productend-of-life management and critical raw materials usage.
For instance, environmental assessments are being used toassist the research & technology decision-making processes
related to commercial aircraft activities. The Defence and Space
Division also uses LCA as part of the development of the Sentinel
satellites that are built for the European Space Agency.

Digitalisation, traceability and criticality mapping
The Company leverages digitalisation as an enabler to optimise
and reduce its environmental footprint. For example, all waste
data is now collected and managed on a single Company-wide
platform in order to provide a holistic view of the waste, enabling
more efficient decision making at Company and site level.
As recommended by the EU Critical Raw Material (“CRM”)
framework, the Company has created and is maintaining a
dedicated internal methodology to assess criticality of raw
materials on the axis of supply risk, environmental and ethicalimpacts. Based on this, a regularly updated watchlist of themost critical raw materials for the Company has been defined toinfluence design choices. The mapping of Critical Raw Materials
and Strategic Raw Materials in the Company’s commercial
activity products is currently ongoing, based on available data.

Competence management
Circularity is a part of the Company’s sustainability andenvironment competency strategy. Accordingly, related training
modules have been integrated in the Company’s training
catalogue, such as “Circular economy – sustainable materials
management”, “What is circular economy”, “Implementing circular
economy processes”, “Circular design and manufacturing inpractise”, “From linear to circular thinking”.

1.2.5 Water
I.

Introduction

The Company’s water usage is mostly linked to non‑industrial
uses, including sanitar y, heating, ventilation and air
conditioning, canteens and fire extinguishing. Around one
third of the water withdrawn is used for industrial uses suchas climate control of industrial facilities (e.g. clean rooms forsatellite assembly; paintshops), surface treatment, machining
and non-destructive testing. This section covers bothwithdrawal and discharge.
Procuring the required water does not currently represent amaterial cost for the Company as overall withdrawn volumes
are relatively limited, especially for its industrial operations.
However, securing water availability to operate the industrial
processes requiring water is critical for the Company and its
supply chain to ensure business continuity. As such, water
aspects are included in the Company’s LCA approach.

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The links between water use, climate and biodiversity are
significant, with climate change and ecosystem degradation
having the potential to exacerbate water stress and consequently
affect water availability. The Company analyses current andprojected local water stress levels to understand where theCompany’s activities have the greatest impact on water
resources and prioritise actions in these areas (e.g. south of
Spain, northern China). This analysis is based inter alia on theWorld Resources Institute’s Aqueduct Water Risk Atlas 4.0 tool,
using the “baseline” data as well as the 2030 scenarios.
Due diligence aspects with regards to the potential environmental
impacts including on water resources in the Company supply
chain are described in section “– 1.2.15 Responsible Supply
Chain”.
Water discharge quality is managed by each site directly toensure compliance with applicable local regulatory requirements.

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

Water

GRI

SASB

SDGs

303 – Water
and Effluents

9-12-13-17

Highest governance body(ies)involved

Board of Directors / ECSC
Executive Committee / Environment Committee

Related corporate policies

Environmental Policy, Code of Conduct

Management system
Relevant certifications

EMS – Environmental Management System
ISO 14001 – 87% of workforce covered

2022

2023

2023
vs. 2022

2023 vs.
Baseline

3,366,404

2,922,431

2,772,185-5.1%-17.7%

4,317,843

3,687,717

3,535,867-4.1%-18.1%

Other key metrics(More metrics available in “– 1.2.17 ESG Data Board”)

2022

2023

2023
vs. 2022% of water withdrawal from all areas with high or extremely high water stress(1)

37%

37%

0p.p.

KPIs

1

OthersTarget 2030

Baseline 2015

Water purchased (m3)-50%

Water withdrawal (m )0% increase

Water:

3(1)

Metrics assumptions

 reas identified with high or extremely high water stress as defined by the Aqueduct Water Risk
A
Atlas, “baseline” (Aqueduct version 3.0 for the 2022 and previous data and Aqueduct version
4.0 -updated in August 2023- for the 2023 data).

Note: 2015 and 2022 data have been restated in order to re-integrate volumes previously
accidentally omitted from two sites located in Germany and one site located in Canada.
Additional resources

Environmental Policy Statement , Sustainability on Airbus.com

II. Governance
The Airbus Environmental Policy and overall governance, as
described in “– 1.2.2 Climate change” apply to this topic.

III. Risk Management
Environmental risk and opportunities are managed following theCompany’s ERM system, as described in the section “– 1.2.2
Climate Change”. This covers among other risks related to water
accessibility in areas of high and extremely high water stress. In
addition, water has been identified as relevant to climate change
physical risks: work is ongoing to update the above-mentioned
risks in line with TCFD.

IV. Implementation/Activities
In 2023, the Company refined its estimates of its own water
usage; overall water usage mostly relates to non-industrial
uses (around 60% of water withdrawal), while the rest is usedin production-related uses (about one third) and fire protection(less than 10%).
In order to better monitor its approach with regards to water
management, the Company has set the following 2030 targets(vs. 2015 baseline): -50% reduction in purchased water and 0%
increase in water withdrawal.

The Company is currently working on a revision of these watertargets with a site per site context-based approach and areinforced focus on sites located in high and extremely high water
stress areas, also considering 2030 projections. When finalised,
this should result in the discontinuation of the purchased water
related target and a more relevant target for water withdrawal.
While all concerned sites are working towards these targets
with the implementation of advanced water management
practices, a focus is put on areas with current or future highwater stress levels. For example, local water stress levels areused as a criterion for prioritising the funding of projects andfor launching pilot projects (e.g. proof of concept launched in
Illescas, Spain on digitised and automated water consumption
real-time monitoring).
In 2023, the Company conducted studies in 14 sites representing
68% of the Airbus 2023 total withdrawal in order to assess thewater management maturity level of these sites and identify
relevant opportunities to further reduce withdrawals. Other sites
have conducted maturity self-assessments based on the same
methodology.

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The strategy is based on the following eight pillars:
Key pillars

Description and rationale

Examples of projects

Measure / metre

Measuring as a prerequisite
to identify water flows andmanage consumption.

Installation of smart water metres with automated and digital data transfer,high frequency and increased granularity (e.g. commercial aircraft sites
and Airbus Defence and Space Division sites in Europe).

Monitor

Track consumption, ensure
control of deviations anddetection of abnormalities.

Smart metering on site/building/asset level, connection to digital platforms,
creation of KPIs and regular reports, alert systems.

Avoid squandering

Identify and fix leakages,
reconsider processes.

Leakage detection campaigns; improved parameters of Super Plastic Forming
press cooling system to avoid unnecessary use of water in Toulouse (France).

ReduceIncrease efficiency;
equipment retrofit.

Adoption of cooling system with reduced water consumption at Illescas site
(Spain); air conditioning, boilers and sanitary equipment retrofit at Puerto Realsite (Spain); replacement of water chiller with air-cooled systems in Portsmouth(UK); new press cooling system in Bremen (Germany); improved efficiency of air
conditioning systems through water treatment system and automatic adaptationof airflow in Stade (Germany); improvement of cooling towers cycles in Toulouse(France); reduction of irrigation at Miami (US), Tianjin (China) and Blagnac (France)sites.

Reuse

Reuse of treated industrial wastewater in Nordenham (Germany) in industrial
Create closed loops; use theprocesses; water reuse for Non-Destructive Testing in Illescas (Spain);same volume several times.
reuse of treated wastewater for irrigation in Beijing (China).

ReplaceUse rainwater.

Rainwater harvesting at Toulouse (France), Broughton (UK) and Illescas (Spain) sites.

New building design

Ensure high water efficiency
standards from the designphase.

Certified building standards, e.g. LEED (Silver certification, Mobile site, US).

Communication

Inform and engage
employees.

Employee awareness campaigns (e.g. World Water Day communication
on internal portal, onsite awareness-raising animations on water in Blagnac
and Toulouse sites).

In 2023, water withdrawal decreased by about 4% compared
to 2022. When compared to 2015 baseline, water withdrawal
reduced by 18.1%; similarly, purchased water dropped by
17.7%. These savings resulted from a number of operational

improvements and technical projects in line with the eight pillars
described above, and including reinforced operational control,
control of irrigation practices and leakage repair.

1.2.6 Biodiversity
I.

Introduction

III. Risk Management

The Company recognises the considerable pressure the planet
is facing as a result of loss of biodiversity. The latest 2019
report of the Intergovernmental Science-Policy Platform on
Biodiversity and Ecosystem Services (“IPBES”) demonstrates
that the health of ecosystems is deteriorating rapidly and the2021 IPBES-IPCC co-sponsored workshop shows the clear
interdependencies between climate action and biodiversity
protection. In this context, the Company intends to improveits understanding of the impacts its activities and biodiversity
may have on each other alongside the interdependencies of thissubject with the Company’s ongoing climate actions.
Moreover, the Company aims to contribute to updated and new
goals and objectives for biodiversity. These include the ones for2030 and 2050 agreed at the 15th Conference of the Parties of
the UN Convention on Biological Diversity in December 2022,
in Montreal, which notably calls on businesses to assess anddisclose biodiversity dependencies, impacts and risks, andreduce negative impacts.

II. Governance
The Airbus Environmental Policy and overall governance, as
described in “– 1.2.2 Climate Change” apply to this topic.

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Environmental risk and opportunities are managed following theCompany’s ERM system, as described in the section “– 1.2.2
Climate Change”.

IV. Implementation/Activities
In order to progress its understanding of the impact of its activities
on biodiversity, the Company has identified the IPBES report asa relevant framework to follow. The Company launched in 2022
and further progressed in 2023 a project to compile an inventoryof potential impacts across the five drivers of biodiversity loss:changing use of sea and lands, direct exploitation of organisms,
climate change, pollution and invasive non-native species.
Meanwhile, the Company presumes that the most material
biodiversity loss impact is linked to the impact of the operationof its commercial aircraft on climate change and, as such, efforts
are prioritised alongside the existing climate-related initiatives.
See “– 1.2.2 Climate Change”. In addition, a number of actions
have been started in relation to the other drivers such as creatingsome baseline to support the management of eventual impacts
related to “Changing use of land” (see below).
Pollution: see “– 1.2.3 Pollution”.

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

Changing Use of Land
Overall, the ground footprint of the aviation industry, as a global
means of transportation, is limited to local sites; mostly airports andrelated activities. As for the Company, its operations are locatedat a number of industrial sites. The Company seeks to engage
with local conservation partners as part of site development
and planning. Where impacts cannot be avoided or reduced,
the Company works with these local partners on conservation
and remediation projects to preserve flora and fauna that are
impacted by the Company’s industrial activities. This is done inline with applicable legal requirements. In France, for instance,
before, during and after construction works, the Company strives
to apply the Avoid, Reduce, Compensate mitigation hierarchy,
as well as establish a budget for compensation measures that
goes beyond the duration of the project (for maintenance forexample). This requires identifying areas rich in biodiversity (inparticular protected species), identifying the potential impacts
on biodiversity, and carrying out, if required, the necessary
biodiversity inventories and the applicable deadlines in thetimeline of each project.

Restoring Biodiversity
The Company’s space products, and more especially
Earth-observation satellites, play an instrumental role in theunderstanding of biodiversity evolution. See “– 1.2.2 Climate
Change – Transition plan – Products and services supporting
climate monitoring and adaptation”. In addition, throughits corporate community impact programme (including theAirbus Foundation), the Company has supported a number of
biodiversity projects that aim to help preserve wildlife and natural
ecosystems. See “– 1.2.16 Community Impact”.

Build our business on the foundation of safety
and quality
1.2.7 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. While 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.

GRI

SASB

416 – Customer Health and Safety

Product Safety

SDGs

Others12

Highest governance body(ies)involved

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

Related corporate policies

Airbus Product Safety Company Policy (A67)

Management system
Relevant certifications

SMS
Products
Operations

KPIs

Corporate Safety Management System
EASA regulation (Parts 21/145/147/M/ORA), EU 996/2010, EU 376/2014,
ECSS-Q ST-40-C and Def-Stan 00-56
EN9100, EN9001, EN9110, AQAP 2110, AQAP 2210 and AQAP 231

TargetHorizon

2022

2023

% SMS officers nominated100%

permanent

100%

100%

% SMS officers trained100%

permanent

100%

100%

Other key metrics
Fatal accident rate Industry wide(1)

2022

2023

0.05 (Gen4)

0.04 (Gen4)

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

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1.2 Non-Financial Information

II. GovernanceCommitment to Just and Fair Culture

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 safety
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.

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 signature of the CEO, Executive Committee members andtop management.

The Company’s Safety Management System
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.

The Company’s Safety Strategy
To support the Company vision for safety – “we constantly
strive to enhance safety together in our quest to reach zeroaccidents” – 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 Company’s safety values;–– provide means so that any employee can report safetyconcerns;–– ensure product safety is a priority in decision making, and–– share lessons learnt and best practices with internal andexternal stakeholders, and take appropriate actions including
actions based on identified top safety threats or opportunities.

Regulatory Compliance
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.

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III. Risk Management
Applying proactive risk management principles has contributed
to significant improvements to 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.

IV. Implementation/Activities
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.
For example, the Company is working with its supply chain toextend its safety enhancement principles to 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. To ensure thesafety and quality of parts used in aircraft and spacecraft
manufacturing guarantees that the final product will meet
safety and quality standards, the Company cascades related
requirements to all its direct suppliers through contractual
terms and the Supplier Code of Conduct. These go beyond ISO
EN9100 quality standards, with the requirement for suppliers
to continuously train their employees on quality assurance andensure they are appropriately skilled. The Company leads anannual audit campaign to verify all quality requirements are met,
including performance and compliance. Priorities are defined
based on risk ranking criteria that consider parts criticality,
operational maturity and production capacity.
Sharing safety information is a key contributor to increasing thelevel of safety. There have been 27 flight safety conferenceswith the Company’s customers since the first was held in
1994. Another means of sharing information is through “Safety
first”, the Company’s safety magazine contributing to theenhancement of safety for aircraft operations by increasing
knowledge and communication on safety-related topics.
It reaches over 1,500 aviation professionals daily via thewebsite safetyfirst.airbus.com and the Safety-first app. D10X
(short for Air Transport Safety, Destination 10X Together) is
another collaborative initiative with airlines. The aim of D10X
is to propose and share pragmatic solutions together with
operators of Company’s aircraft for the key safety issues
identified within this network.
In addition to these external safety promotion initiatives,
the Company invests in internal safety promotion with theobjective of continuously reinforcing the safety culture of all
employees. This is supported by different means including
communication campaigns, training, safety awarenesssessions, and development of safety promotion centres.

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

SMS officers are nominated and trained in all key business
functions to ensure implementation, and operation of the SMS
within the Company, including safety promotion. 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.

The Company also continues to innovate to benefit fromtechnological evolutions to further enhance both operations
and safety. All these initiatives lead to continuous improvement of
the safety record. This is illustrated in statistics (below) showingthat the latest fourth-generation jets are the safest. All of theCompany’s fly-by-wire family aircraft (including A320, A330/
A340, A380, A350, A220 fleets) are the latest fourth-generation
aircraft.

Ten-year moving average fatal accident rate (per million flights) per aircraft generation
Efficiency metric evolution (gCO2/km.pax)
1,2

1.11

1,0

0,8

0,6

0,4

0,2
0.11
0.04

0,0
2000

Generation 2

2010

Generation 3

2015

2020

2023

Generation 4

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

1.2.8 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
with significant cyber security capabilities for the anticipation,
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-the-art cyber capabilities for the defence, detection and responseto emerging cyber threats. The cyber security paradigm adopts
a compliance, regulatory and risk-based approach embedded
across four asset bodies: IM, industrial, products and services,and people and workplace domains. Developing cyber security
as a business function, with the relevant capabilities andstakeholders, ensures an evolutionary approach for continued
protection against emerging threats and to support the businessin securely enabling its digital transformation.

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Cyber security

Highest governancebody(ies) involved

GRI

SASB

SDGs

Data Security

9, 12

OthersCorporate Security Council; Digital Security Team (Cyber Security Validation Body)
Airbus Company Security Policy

Related corporate
policies and directives

Management system

Security Requirements for Company Information & Data Classification and Protection, Security Requirements
for Information Systems Management, Security Requirements for Affiliates, Security Requirements for
Industrial Automation and Control Systems, Requirements for Product Security, Requirements on Information
Security for Suppliers, Specific Requirements on Information Security for IT Service Providers
Manage Airbus Company Security – aligned to ISO27001 standard, Monitor, Identify & Report Company Assetvulnerabilities, Assess & Treat Company Asset Security Risk

Key metrics
Number of data breaches reported to data authorities
Percentage involving confidential information
Number of mandatory cyber security awareness e-learnings (01 October – 30 September)

II. Governance
The Company has undertaken a cyber security transformation
since 2019 with the establishment of a federated model ofdigital 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, responsible
for the definition and audit of cyber security directives andmethods aligned to major industry standards such as ISO27001
or IEC62443. The Company Chief Information Security Officer
reports to the Chief Security Officer, who in turn has a direct
reporting line to the CEO. Such an approach ensures localised
accountability and reactivity to cyber risks with centralised
governance, reporting, technical standards, and processes.
Cyber security governance encompasses both Divisions
and global operations plus affiliates. The Company Board of
Directors are regularly updated on cyber security topics, with two
dedicated sessions in 2023 and receipt of quarterly “Executive
Reports” that cover all major achievements, challenges andtrends. The three CEOs of the Company and its Divisions arebriefed on security topics every two months.
Corporate Security Council. The Company has establisheda 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 and services, and people andworkplace.
Security governance directives are published and audited
to ensure the Company business follows the same standards
for data protection and systems security. Key cyber security
directives include the ones listed in the table above.

III. Risk Management
Confidentiality, integrity and availability are known to definecyber security objectives when thinking about systems risks.
Corporate Security is accountable for security risk management
and is in charge of defining cyber security risks taxonomy andmanaging the lifecycle in ERM, including strategy, organisation,
roadmap and initiatives at company-wide level. In terms of cyber

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2022

2023

0

1

N/A

100%

80,48081,476security, risk management is the aggregation of continual risk
reporting, cyber security validation processes embedded
within security by design principles for projects, applications
and infrastructures – in addition to the implementation ofdigital security controls aligned to the Company’s enterprisesecurity architecture standards. A fully industrialised frameworkand toolkit has been deployed to ensure the standardisedprescription, deployment and assessment of these controls
across the Company.
Risk mitigation measures follow the principle of people, process,and technology controls to reduce the likelihood and/or impact
of 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 MC.AS.02 Risk Management), and operating
models. Technical security controls are implemented andmeasured in accordance with ISO27001 and other industry
standard information security management standards. The
Company implements a number of key technical security
controls in the reduction of cyber incident likelihood including
the rollout of endpoint protection and data loss prevention
tools, the implementation of multi-factor authentication, andthe adoption of enterprise security architecture approaches. To
reduce impact from cyber events, it operates in-house security
operations centres covering both commercial and national
activities; plus a Computer Emergency Response (CERT)
team analysing cyber security threat intelligence and rapidly
investigating and containing cyber security incidents.
Cyber security risk management is under regular internal andexternal audit, confirming processes and implementation toboth the Company’s and industry standards. Technical audits
are also conducted regularly on applications, systems andinfrastructures in the form of cyber security penetration testing.
Technical red-team (offensive) cyber exercises are conducted atleast once per year for the evaluation of detection and response
planning. These are in addition to annual cyber security crisis
simulations for evaluation of business continuity and reactivity.

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

IV. Implementation/Activities
Building upon the enhancements of 2022, a number of key
initiatives were undertaken in 2023 to improve the cyber security
position, reduce associated risks and decrease the likelihood of
successful cyber attacks, including:–– deployment of the Company’s cyber security strategy forcapability development, protection improvements and risk
reduction from cyber attack by end of 2025;–– creation of MIRIS company (Mutual of Insurance andReinsurance for Information Systems) by the Company and10 other large European companies, in order to provide cyber
insurance coverage and a technical hub for sharing amongst
its members;–– industrialisation and adoption of Company-wide cyber security
controls framework to standardise the technical approach tosecurity by design;–– maintaining compliance with existing and evolving cybersecurity regulations, and anticipating future national,
international, and sector-specific cyber security laws; forinstance, through the implementation of a Data ComplianceCentre to ensure the Company’s compliance towards internaland external regulations and policies;–– conducting an in-house full red-team cyber exercise forcontinual process improvement and controls maturity arounddata exfiltration scenarios;–– within the framework of the Company’s Cyber Communityof Practice, a programme of internal events was launchedfocusing on technical sharing to support the development ofpeople. Examples of such events include an annual conference
to share technical topics and organisational news with thecyber security community, and a physical/virtual hybrid
hands-on technical training day for Red, Blue and Purpleteam skills development;–– certified Airbus cyber security diplomas launched in France
in 2022, in order to reinforce and future-proof existing cybersecurity competency, in addition to building an appropriate
pipeline for future skills and needs. The Company-delivered
Bachelor’s and Master’s degrees are validated by the French
National Registry of Professional Certifications, and correspondto 660 hours and 870 hours of courses respectively. In 2023,
22 students were registered in the Bachelor’s programme and
17 students in the Master’s;–– as part of the Top Company Objectives, employees are highly
recommended to complete each year a training on cybersecurity issues.
Such activities have continued to reduce the overall cyber security
risk, specifically around the increasing threat from ransomware.

V. Outlook
There are no signs globally that the threats of cyber attack will
decrease; therefore, the Company maintains an advanced cybersecurity posture and anticipates future threats. Specific focus
is placed on:–– ensuring continued compliance to international, national, andindustry specific cyber security regulations;–– company resilience; ensuring prevention and recovery fromcyber skirmishes, and destructive ransomware attacks;–– extended enterprise and supply chain cyber security
collaborations.

1.2.9 Health and safety
I.

Introduction

It is with great sadness that the Company reports the workrelated deaths of three employees in two separate accidents in
2023. One employee, in China, suffered a fall from a working
platform while visiting a supplier’s site. The others were flight
service pilots for GFD, a subsidiary of the Company. They werein a Learjet aircraft that was involved in an accident at Hohn Air
Base in Germany. The Company expresses sincere regret andcondolences to the employees’ families, friends and colleagues.
Actions have been taken to address the lessons learned.

These accidents reinforce the Company’s determination tocontinue the drive towards zero-harm, and ensuring that its
work activities do not adversely affect the safety and healthof people remains a top priority. The Company continues toimprove its health and safety risk management systems and is
working to extend the coverage of its ISO 45001 certification.
Areas of significant concern identified by formal risk assessment
processes are escalated to the Company’s Enterprise Risk
Management (ERM) system.

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Health and safety

GRI

SASB

403 Occupational Health and Safety

SDGs

Others8, 12Vigilance
Plan

Highest governance body(ies) involved

Board of Directors; Ethics, Compliance and Sustainability Committee; Company Occupational
Health and Safety Governance Board

Related corporate policies

Occupational Health and Safety Policy A41, Airbus Code of Conduct

Key metrics (More in “– 6.1.17 ESG data board”)
Lost-Time Injury Frequency Rate

(1)

Lost-Time Injury Frequency Rate – commercial aircraft business

2022

2023

2.23

2.21

2.25

2.31

0.117

0.122

Number of Near-miss reports – commercial aircraft business(4)28,92537,836

Number of health and safety specific training hours delivered

286,815

304,420

17,301

55,26690,490112,652

2,214

1,763

(1)

Lost Time Injury Severity Rate – FISH perimeter(2)(3)(5)

Number of industrial safety training hours delivered(5)Number of employees who received health and safety training(5)

Number of employees having attended “EH&S Certificate” modules 1 & 2(5)Number of employees having attended “EH&S Certificate” modules 3 & 4

97

(5)

Helpline + Occupational Health consultations for mental health issues, irrespective of cause(6)Estimate of core entities certified to ISO 45001 or similar standard
Estimate of % workforce covered by ISO 45001 or similar certified system
Remuneration

12,007~one third~25%~one third~25%

A proportion of variable pay for executives and “Level IV” leaders is tied to the achievement of the Company Lost
Time Injury Frequency rate target. Lost Time Injury Frequency rate performance also impacts success sharepayout made to employees.

Metrics comments

For the Lost-Time Injury (LTI) Frequency Rate scope, please see footnotes in paragraph IV. – Health & Safety
Performance – Graph 1. below. For the LTI Frequency Rate – commercial aircraft business scope, see same
section.
(2)
Work related deaths are treated individually and are not included in the Severity Rate(3)
2022 Severity Rate figure of 0.046 amended to 0.117 following a change of calculation methodology related tothe allocation of lost time days to a reporting period and so enabling comparison with the 2023 figure.
(4)
Near-Miss reports may include safety observations in some domains.
(5)The reporting period for training related metrics is from 1 October to 30 September. Some training may berepeated but not every year, causing fluctuations in annual training hours.
(6)The mental health consultations scope is Company’s commercial aircraft activities, Airbus Helicopters andAirbus Defence and Space in France, Germany, Spain and United Kingdom, excluding affiliates, including callsby employees’ family members.

Additional resources

People Safety on Airbus.com , Code of Conduct – incl. Health and Safety commitment(1)

II. Governance
The Company has updated and re-issued its Company-wide
health and safety policy, which takes into account ISO 45001
and was jointly authorised by the Chief Executive Officer andthe Chief Human Resources Officer (“CHRO”). This policy
reaffirms the commitment to the protection of people, particularly
vulnerable populations, as well as the business. It clearly states
the Company’s Zero-Harm aspiration and the role of leadersin the journey to a culture in which everyone takes appropriate
responsibility for their own safety and that of others. This
conspicuous dedication underpins the Company-wide work to
improve health and safety performance.
The Company Occupational Health and Safety (“OHS”)
Governance Board has also continued to stimulate improvements.
Chaired by the CHRO, the Governance Board met twice in 2023.
Topics supported by the Governance Board included the healthand safety policy, the ambitions for employee wellbeing support,
the management of supplier health and safety risks, and thegoal of extending the Company’s coverage of health and safety
management systems certified to ISO 45001. A number ofmanagement documents have been issued or revised in support

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Organisation Manual”, the “Incident Management” method, andthe “Supplier and Contractor Health and Safety Management”
method.
The Function Organisation Manual describes the structure ofresources in the function, the governance of occupational healthand safety management and the interface with other functionsof the Company. To support the globally collaborative approach
for a harmonised management system, Regional Heads ofEnvironment, Health and Safety have been appointed in 2023
in North America and in the Asia Pacific region, complementing
the EHS Focal Points nominated for Africa, Middle East and India.
Whilst ISO 45001 certification coverage has slightly increased,
approximately one third of the Company’s entities in homecountries and one quarter of its employees are currently coveredby a certified health and safety management system. Workprogresses steadily to increase this scope because certification
helps to mitigate physical, reputational and financial risks.

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

An ISO 45001 certification project in Airbus SAS and Airbus
Operations SAS has been validated by the OHS Governance
Board and is in progress, as a precursor to wider engagement ofcommercial aircraft activity entities. In parallel Airbus Helicopters
is working towards divisional certification, and Airbus Defence
and Space is consolidating existing national entity certificates
into a divisional approach. Naturally, business units not yet partof the scope for ISO 45001 certification are still required to havemanagement systems, appropriate to their scale and the natureof risks they may face.
An additional governance body has been formalised in 2023, inthe form of a Company Incident Review Panel. It meets monthly
to review the quality, completeness and accuracy of incident
reports. Business areas have local incident reviews, however
the decisions of the Company Panel take precedence. This
ensures consistency of application of the harmonised definitions
and other requirements of the Company method for incident
management.

III. Risk Management
Occupational health and safety hazards are identified andevaluated through the systematic application of the Company
methods for “Health and Safety Risk Management” and “IncidentManagement”. Hazards that are considered to present a highpotential impact are managed using the Company’s ERM
system. These priority risks form part of the Company VigilancePlan, with associated mitigation and prevention actions that are
subjected to regular executive level scrutiny. The method for
health and safety risk management applies the “hierarchy ofcontrol”, prioritising measures based on elimination, substitution
and engineering, above administrative controls and personal
protective equipment.
This approach also covers the ongoing consideration of new
and emerging risks, such as those associated with robotics andwearable technology. No new risks were escalated in 2023, so
the health and safety risks that are currently being managed
by the ERM system remain the same ones reported in 2022,
although the level of risk has been reduced. Current priority risks
are mental health and wellbeing, hazardous substances andmaterials, working environment, and on-site contractors’ healthand safety management. Prevention measures and mitigationplans around these risks are further detailed in the following
section.

IV. Implementation / activities
The ethos of “Zero-Harm” is to enable an environment that is safeand healthy for all, which in turn promotes employee wellbeing
and a conscientious risk aware culture. In 2023, activity tosupport this ethos focused on the following topics:
Substances and materials. The Company has systems andprocesses in place to mitigate any potential risk from hazardous
substances and materials when technically-suitable alternatives
are not available. The Company’s management system contains
various risk-control elements, including documented methods
and the surveillance programmes that record and analyse
the application of the conditions that are required by relevant
authorisations. In late 2022 a five-year project called REACH-IT
was completed in the Company’s commercial aircraft activities,
together with similar initiatives in the Divisions, on compliancewith the environment, health and safety conditions describedin the chromates authorisations granted under the EU´s

REACH (Registration, Evaluation, Authorisation and Restrictionof Chemicals) regulation. The routines to ensure long-term
adherence to the Company standard for management ofchromates were launched and successfully run in 2023. The
routines will continue in run-mode throughout the authorisation
periods.
Work environment concerns include slip, trip and fall risks,
which are a leading cause of accidents, as well as other key
topics such as work at height. Prevention activity continues tofocus on the lessons learned from the root causes of Lost Time
Injury and the reporting and resolution of Near Misses. This could
even include consequential management if individuals wilfully andrepeatedly broke the rules. Over the past year, this risk control
activity meant that work at height in the Company’s production
facilities is no longer felt to be the most severe concern.
The management of on-site suppliers has been further
improved by a dedicated multifunctional project focused on
clarifying the method for “Supplier and Contractor Health and
Safety Management”. This has resulted in a revised versionof the method. In addition, procurement processes include
detailed health and safety requirements as part of the suppliersustainability due diligence process, which uses the support ofan external service provider (see “– 1.2.15 Responsible Supply
Chain – IV. Supply Chain Vigilance Plan).”Mental health and wellbeing are important considerationsin industry and society at large, particularly in the context ofchallenging personal and environmental factors. The Company
has defined a management strategy and mitigation plan, which
includes a network of Wellbeing Focal Points and relevant training.
Recognising that the root causes of psychological problems tend
to be multifactorial, the Company sees an ethical and economic
value in providing employees and their families with wellbeing
support and services. External helplines for employees andtheir loved ones provide opportunities to anonymously express
concerns about personal or professional aspects of their life. The
Company conducts psycho-social risk assessments, either ad
hoc or as part of a planned programme, depending on the local
regulatory position. Mental health consultations are offered to
employees, on site or remotely. Additionally, health and wellbeing
support material is available on the Company’s intranet pages.
Initiatives such as wellbeing seminars and mental health days
have helped raise awareness and open discussion around thesesensitive topics. The role of Wellbeing Ambassador has also beencreated and a network of such ambassadors set up. Finally, theCompany successfully completed a pilot of psychosocial risk
assessment in 2023, using the myWE app, in the Secure Land
Communications business unit.
Ergonomics and manual handling are considered a significant
risk throughout the aerospace industry. The Company has
implemented a wide range of initiatives to mitigate the risks,
including:–– producing detailed Manual Handling Guidelines;–– an awareness module dedicated to manual handling andposture;–– providing a catalogue of biomechanical best-practices,
including technical solutions and training;–– work analysis to evaluate the maximum healthy duration oftasks and postures;–– an awareness video that promotes ergonomically-friendly
ways of working;

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1. Information on the Company’s Activities
1.2 Non-Financial Information–– strengthening collective muscular reinforcement practices andphysiotherapist coaching for high risk tasks;–– evaluating wearable technologies to help monitor
musculoskeletal stress, providing data for analysis and risk
control.
Reinforcing Governance also led to important activities in
2023, including for instance, a new monthly performance
report and a Health, Safety and Environment Summit to facilitatecommunication and collaboration in the Asia Pacific region.
Regulatory update briefings were provided for leaders, including
dedicated sessions in France and the UK. Airbus Defence andSpace sites in the home countries were recertified to ISO 45001
and a new certification was gained by Airborne Solutions. During2023, the Company also laid the foundations of a corporate
health and safety compliance assurance capability. Sitting at
arm’s length from the operational health and safety functions,the corporate compliance assurance team provides independent
assurance and reinforces the second line of defence, thereby
fostering continual improvement. The team aims to support
operational teams, as the first line of defence, and complement
the work carried out by corporate audit, as the third line ofdefence. Additionally, the team supports the Company affiliates
governance by evaluating self-assessments and conducting fitchecks of key health and safety management system elements.
These fit-checks are part of the Company’s “Internal Controls Self
Assessment” (ICSA) framework, or similar in the Divisions, whichis part of the ERM process. In 2023, the work of the corporate
health and safety compliance assurance team focused on:–– developing its internal control framework and defining three“key controls” to monitor;–– conducting two internal health and safety audits;–– preparing a three-year internal audit programme;–– conducting four health and safety “fit-checks” of affiliates;–– planning five “fit-checks” to be conducted 2024.
The management of specific risks, awareness raising andthe continued growth of safety culture in the various businessareas included activities such as:–– a “Team Talk” and “Safety in a Box” resources to enable
managers’ health and safety discussions with employees
were created by the People Safety at Work (PS@W) team;–– cross-fertilisation with experts from other locations joining site
health and safety tours (PS@W “Go-Look at Site”);–– recovery action reviews held in areas that had safety
performance concerns;–– workstation safety orientation boards were deployed in the
Asia Pacific region;–– cyclist safety initiatives such as a “Dark Season” campaign,and videos on visibility and “Fork-Lift Trucks vs. Cyclists”.
In addition, initiatives called PS@W, “We Care” and “SafeTogether” continue to support behavioural change for accident
reduction in commercial aircraft activity sites, Airbus Defence andSpace, and Airbus Helicopters respectively. Work has started

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on the transition of PS@W into a run-mode activity within the
Operational Environment, Health and Safety Function.
Learning and competencies. In order to reinforce health andsafety competences at all leadership levels, a new occupational
health and safety management competence requirement has
been created, namely, “Ensure a safe and healthy environment –the ability to understand and meet their health and safety
responsibilities, whilst driving a safety mindset and risk aware
culture within the scope of their role”. This competence requirement
is consistent with the leadership EHS training programme.
Building on the existing two modules, this programme has been
completed with two new modules, deployed in 2023. These newmodules focus on EHS management systems, culture building
and innovation. This programme includes both theoreticalelements and their concrete application in the workplace.
Attendees who successfully complete this programme areawarded an externally validated certificate in health and safety
management competence.
New courses have also been deployed for risk assessment, andoccupational health and safety induction. The latter addresses
responsibilities and induction contents for new employees andothers on Company sites. Courses in development include arefresher module for those who have previously completed
the Leadership EHS modules 1 and 2. The Executive EHS
Masterclass continues to be delivered as necessary. Health andsafety was part of the Company’s mandatory learning curriculumin 2023, and several courses are included in the list for 2024.
The Company is enhancing its reporting by including the numberof industrial safety training hours, as shown in the associatedHealth & Safety Metrics table. Industrial safety training is thatwhich is related to the safe operation of industrial means suchas fork lift trucks and elevating platforms. During the period from
October 2022 to September 2023, a total of 304,420 hours ofsafety specific training was delivered to 112,652 employees. If
55,266 hours of industrial safety training is included, the total
increases to 359,686 hours.

Health and Safety Performance
Performance is monitored using normalised indicators derived
from data sets that are produced by applying harmonised
definitions. This data equivalency enables the Company tocompare performance over time, and between business
units. These harmonised definitions exclude some categories
of accidents that are reported to the local authorities in somejurisdictions but not in others. Psychological concerns may betreated as “injury” in some countries and so they, and commuting
accidents, are legally reportable in some states but not in others,
consequently they are excluded from the Company Lost Time
Injury Frequency Rate. These Company specific indicators
are shown in the “Health & Safety Metrics 2023” table, below,
together with the 2022 like-for-like figures.

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

1

The Company rolling 12 months employee lost time injury frequency rate
4

3

2.36

2.43

2.32

2.28

2.23

2.21

2.21

2.18

2.22

2.18

2.23

2.21

J

F

M

A

M

J

J

A

S

O

N

D

2

1
0

2023
AIRBUS
Graph 1. Company-wide Lost TimeInjury Frequency Rate (FR1).

The principal performance indicator used by the Company,
including its Divisions is the Lost Time Injury Frequency Rate
(FR1). The FR1 calculation produces a figure for the number of
injuries per one million (1,000,000) worked hours. The scope of
the Company FR1 covers:–– all sites in France, Germany, UK and Spain for the Company’scommercial aircraft activity, Airbus Helicopters, Airbus Defence
and Space, Airbus Atlantic and Airbus Aerostructures;–– the Company’s commercial aircraft Final Assembly Lines(FAL’s) in Mobile, US and in Tianjin, China;–– Airbus Defence and Space site in Poland;–– the consolidated data from the Airbus Helicopters sites in USA,
Romania, Mexico, Canada, Brazil, Japan, Australia, Ireland,
Italy, Poland and China;–– the consolidated data from the Airbus Atlantic sites in Canada,
Morocco, Portugal and Tunisia.
The Company’s commercial aircraft business FR1 perimetercovers:–– all commercial aircraft sites in France, Germany, Spain and UK;–– the commercial aircraft Final Assembly Lines (FAL’s) in Mobile,
US and in Tianjin, China.
To enable accurate monitoring, appropriate investigations
are conducted of all environment, health and safety related
incidents. The Company captures root causes and otherpertinent information in a management platform called FISH
(Federated Information for Environment, Safety and Health).
Local management teams and safety committees determine
and track mitigation actions. The Company Incident Review
Panel monitors data quality and adherence to the definitions
found in the Company method for incident management. Toplevel oversight is provided by the Company Occupational
Health and Safety Governance Board. Currently the Company
estimates that about 80% of its workforce is covered by the
FISH management footprint, which includes active workforce
employees, apprentices and temporary employees, while theFR1 scope reaches close to 86% when adding complementary
information sources.

The 2023 annual frequency rate was 2.21 Company-wide, and2.31 for the Company’s commercial aircraft perimeter, versus
2.23 and 2.25 respectively for 2022. On this basis the Company
decreased its overall FR1 by 0.90%, whilst the commercial
aircraft perimeter FR1 increased its FR1 by 2.67% 2023, vs. atarget of -15%. The frequency rates are widely communicated.
They are referred to in the CEO’s monthly reviews, and aresubsequently cascaded through the Company by other leaders’reviews. Frequency rate performance is also periodically sharedwith relevant committees and work councils.
Safety performance in 2023 was not as expected, degrading
very slightly over the course of the year. A higher number of slip,
trip and fall accidents, closely followed by accidents in whichpeople struck against an object, contributed to this deterioration.
While this can partly be explained by the increase of production
rates together with a higher number of new employees, theCompany’s management does not consider this increase in
accidents acceptable and believe it underlines the importance ofleadership, safety culture and high standards of risk identificationand mitigation.
A severity rate indicator was defined in 2022, which is limited tothe scope of FISH (see above). This indicator measures impact ofincidents by obtaining the number of injury-related lost days per
1,000 worked hours, which can provide an alternative mappingof risk areas. Lost days are recorded against the month in which
they occurred, thereby spreading the impact of severe injuries
across the months that are affected. In 2023, the severity rate
amounted to 0.122 (compared to 0.117 in 2022). The data scopefor severity rate is those lost time injuries reported in FISH. Some
37,836 near misses were recorded in FISH in the Company’scommercial aircraft business perimeter in 2023. The Company
actively encourages the reporting of near misses in order tobetter identify root causes and the mitigation actions to support
accident prevention.

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Airbus Annual Report 109

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

V. Outlook
Eradicating accident root causes will be a focus of 2024, with theobjective of continually improving the safety of the Company’s
workers and regaining a positive performance trend.
In addition, the Company is working to further improve the scopeand depth of its data capture and reporting capabilities, enabling
it to further mature health and safety management and ensuring
alignment with evolving reporting requirements. This includes
defining new metrics and increasing the footprint of the FISH
platform.

Commitment to ISO 45001 management system certification
will remain a priority throughout 2024, together with building
corporate EHS Compliance Assurance capacity. A health careplan is being developed to address new and emerging risks
and the Company is exploring digital support tools, including
a wellbeing app to enable proactive health management for
employees throughout their career. Altogether, these actions
aim to further drive effective, consistent and efficient EHS risk
mitigation action, in support of the Company’s Zero-Harm
ambition.

Respect human rights and foster inclusion
1.2.10 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 standards and principles, 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 applicablelaw in the countries in which the Company operates and take
into account the UN Guiding Principles for Business andHuman Rights (“UNGPs”), and the Organisation for Economic
Co-operation and Development’s (“OECD”) Guidelines forMultinational Enterprises.
“Respect for human rights” was prioritised by the Company
as one of the four sustainability commitments agreed by the

110 Airbus Annual Report

Universal Registration Document 2023

Executive Committee and the ECSC at Board level during 2020.
In addition, in reflection of the importance it places on this topic,
the Company again endorsed including “respect human rights”
as part of its 2024 Top Company Objectives in the “in all we do,we” section which aims to anchor good governance practices
and values into the business.
The Company’s actions to progress its ambition to “embedand advance respect for human rights throughout its
business, operations and supply chain” continue to follow
recommendations identified through a human rights impact
and gap analysis conducted by a specialist external humanrights consultancy in 2019. This analysis considered current
and upcoming regulatory requirements and international bestpractice as well as international principles and standards,
including the UNGPs. Details of these actions follow.

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

Human Rights

GRI

SASB

SDGs

408 Child Labour
409 Forced or Compulsory Labour

Others1

OthersVigilancePlan

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

Board of Directors / ECSC
Executive Committee

Related corporate policies
and reference documents

Code of Conduct; International Framework Agreement; Airbus Supplier Code of Conduct; Airbus
Human Rights Policy; Airbus Human Rights Policy Statement

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, UNGPs

KPIs% of investigations completed or in progress(1)% of sites having undertaken a social assessment

TargetTarget year

2022

2023

2023
vs. 2022100%

Permanent

100%

100%

-

100%

2026

29%

51%

+22pp

100%

Permanent

100%(6)

100%(6)-

Other key metrics

2022

2023

2023
vs. 2022

Number of participants to human rights trainings – cumulative, reporting period: 1 Oct-30 Sep(4)6,955

96,714+89,759

28

59

+31

(2)

% of findings closed within 18-months(3)Number of alerts of human rights concern from within the Company’s supply chain(5)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 (with 2020 sites scope as reference).
(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)
Covering forced and child labour and other labour rights identified through the Supplier Compliance Review, media screening,
NGO reports or employees.
(6)% of site findings closed within 18 months. Findings related to corporate management systems will be closed following the upcoming
release of the Company’ Sustainability Due Diligence and Human Rights Directive.
Additional resources

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

II. Governance

Human Rights Policy

The Chief Sustainability Officer and Communications has top
level accountability for human rights at Executive Committee
level. As per its formalised governance on human rights, progress
is monitored in the ECSC and actions are defined and progress
tracked through the Human Rights Steering Committee.
Accordingly, in 2023, the Company held a number of suchmeetings and presentations. A Human Rights Core Team,
made up of multi-divisional and multi-functional representatives
from throughout the Company, drives the main actions of the
Human Rights roadmap. Due to the transverse nature of humanrights topics, various functions are responsible for managing
compliance with the relevant commitments outlined within the
Company Human Rights Policy (see “Human Rights Policy”
section below) and develop measures to support implementation,
including assignment of roles and responsibilities within their own
organisation and provision of resources to conduct risk-based
due diligence.

The Company Human Rights Policy covers all employees
worldwide including controlled affiliates and contractors whilst
on Company sites or at work under the responsibility of theCompany. Currently available in five languages, it was developed
taking into account best practice frameworks and feedback fromexternal stakeholders including representatives from civil society,academia and human rights organisations.

Other networks within the Company that support implementationand compliance include for example, the Ethics & Compliancenetwork, the Privacy network, the Sustainability Ambassador
network and the Inclusion and Diversity network.

As well as a commitment to respecting human rights through theimplementation of due diligence and compliance with applicablelaw, its baseline commitments build on international standards
and principles including the UNGPs, the OECD Guidance forMultinational Enterprises on Responsible Business Conduct
and the ILO.
These policy commitments are being embedded throughout
the Company through a sustainability due diligence and humanrights directive which defines and establishes a set of business
requirements. These business requirements will be integrated
into the Company Business Management System during 2024
and be supported by methods, processes and guidance. Internal
capacity building, including training and awareness raising will
also support adherence. This work will continue to be a focus
during 2024.

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Airbus Annual Report 111

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

III. Risk Management
Salient human rights issues
The Company is committed to identifying and addressing its
salient issues through ongoing monitoring of internal and externalrisks, including within its supply chain, and engagement with
key internal and external stakeholders. Taking into accountthat salient issues may change over time due to internal andexternal influences, the Company is committed to reviewing
them on a regular basis. This includes an annual review to identify
any new issues that may need prioritisation, a comprehensive
more in depth review conducted every three years and ad hoc
assessments as required.
In 2022/2023, the Company undertook a full review of its salient
human rights issues. The methodology used is based on the
UNGPs and includes an assessment of its impacts in terms ofseverity (scope, scale, irremediability), likelihood, relationshipand level of influence to inform prioritisation. The results of thisanalysis are reviewed by both internal and external stakeholders(including human rights NGOs, academics and researchers,
industry groups), prior to final validation at EC level.
All risks related to the salient issues are recorded through the
ERM system, and governance follows a similar process as
the one existing for the Company’s Top Company Risks. For
example, sponsorship of each risk is at EC level with nominatedsalient issue owners who have responsibility to develop
and implement action plans as well as setting measures ofeffectiveness. Reporting of the progress of actions to the EC
is conducted at least once per year including during the ERM
presentation of Top Company Risks as well as through relevant
Steering Committees and other Risk & Opportunity Boards atfunctional and divisional level.
The actions taken during 2023 to mitigate the risks identified
through its saliency analysis (with impacted rightsholders inparenthesis) include:–– Impacts related to products and services (passengers
and citizens): Overseen by the EC, the Company continued
to review the integration of human rights due diligence throughexisting processes and tools with a view to mitigating therisk of misuse of its defence products. For further details ofactions related to this salient human rights issue, please see
the Due Diligence section below. In addition, the Company
started to review how to integrate human rights considerations
into the development of new defence technology (including
AI / autonomous systems) and work will continue on this topic
during 2024.
–– Risk of forced labour (supply chain workers): Key activities
to mitigate the risk of forced labour on the Company’s sites
through onsite contractors included a forced labour gap
analysis of the Company’s sites focused on high risk countries
for forced labour based on publicly available indices. The
objective of the analysis was to understand any gaps related
to policies and processes and to define and strengthenroles and responsibilities related to procuring, onboarding
and monitoring of onsite contractors focused on high risk
activities such as cleaning, security and catering. In addition,
meetings with peers, suppliers, the Responsible Business
Alliance, NGOs and the Company’s employees were held inSoutheast Asia aimed at understanding how the expectations
and commitments outlined in the Company’s policies andprocesses, including the Company Human Rights Policy andSupplier Code of Conduct, are being applied in practice.

112 Airbus Annual Report

Universal Registration Document 2023

A set of recommended actions based on the results of thefindings are currently being reviewed and work on mitigating
risks will continue during 2024.
–– Impacts related to the sourcing of raw materials (supply
chain workers): During 2023, the Company deepened its
understanding of potential human rights impacts related toits sourcing of raw materials, which are also of particular
relevance in its transition to decarbonisation. The identified
areas of potential risks due to the raw materials required in thedevelopment and manufacture of new and existing technology
include, for example, worker exploitation, forced labour, childrights, health and safety and environmental pollution. Workwill continue on this topic during 2024.
–– Impacts related to diverse and inclusive workplaces(own workforce): During 2023, actions to progress thissalient issue included a continued focus on the “25 by 25”
gender diversity ambition to increase female representation
at executive levels of the Company, creating a robust pipeline
including specific leadership programmes for women, suchas MyWay where the Company maintained the numbers ofcohorts at the same level as the previous year (100 delegates)
and to support inclusive leadership. In 2023, the Company
also ensured a 50/50 split of women/men attending otherleadership development programmes. In addition, several
actions were implemented to mitigate the risk criticality ofharassment on the Company’s sites. Notably, in 2023, thecompany produced a global framework document on how toprevent, detect and remediate harassment in the workplace,complemented by a guidebook to equip all employees withpractical information on what to do if they are concerned
about or impacted by harassment in the workplace. Additional
actions included the development of training, real life casestudies and team talks etc. to support awareness and capacity
building. The Company also increased resources for internal
investigations resulting in improved triage, prioritisation andresponse time for alerts. For further information, see “– 1.2.11
Inclusion and Diversity”. Actions will continue during 2024.

Human rights due diligence
During 2023, the Company continued to strengthen its riskbased human rights due diligence taking into account the OECD
Due Diligence Guidance for Responsible Business Conduct.
This due diligence is intended to support identification, mitigation
and/or prevention and remediation of human rights risks acrossthe Company’s supply chain and own operations as well as risks
in relation to the Company’s products and services. Key activities
conducted during 2023 include:
Due diligence related to the Company’s own operations.
The Company continued to develop and progress actions
related to due diligence in order to identify and address risks
related to human rights within its own operations. This included
the continued roll out of onsite social assessments focusedon human and labour rights, conducted by a third party social
assurance provider consistent with the assessments carried out
in the Company’s supply chain, on the Company’s own sites,
including its controlled affiliates.
The Company has set a target to ensure that 100% of its sites withover 100 employees are assessed for human and labour rights
risks by the end of 2026. Since 2020, 51% of the Company’ssites with 100+ employees have been assessed.

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

During 2023, 22 onsite social assessments (from a target of18) were conducted in countries including: Spain, Germany,
México, Malaysia, Romania, the UK, Brazil, Singapore, Poland,
India, France and Canada. The sites were selected based on an
analysis of country risk using publicly available indices (includingchild labour, forced labour and labour rights), the type of activity(prioritising production facilities) and the number of employees.
In addition, any alerts relating to human rights coming from othersources, including the ICSA process. Relevant legislation was
also taken into account.
During the assessments, 34 findings were identified across
13 sites, including findings involving onsite contractors. Findings
included, for example, excessive working hours, insufficientdetail regarding working hours within employment contracts,
inadequate overtime payments and insufficient rest days. Actions
to close the findings and provide appropriate remediation are
ongoing. The Company aims to close all site findings without
undue delay and within a maximum of 18-months.
In addition, the Company also identified a number of indicatorsof forced labour on two of its sites in Southeast Asia involving
certain onsite service providers in the areas of cleaning,catering and security. Since identification, the Company has
been working with the respective suppliers to remediate thefindings, which included payment of recruitment fees, retentionof identification documents and excessive working hours. The
Company continues to monitor sites in its higher risk countries
in particular for indicators of forced labour (see “Salient humanrights issues” section above).
Supply chain due diligence. The Company continued todevelop and progress actions related to due diligence, including
related to human rights, within its supply chain. For full details,
see “– 1.2.15 Responsible supply chain”.
Product and service due diligence (focused on defence
sales). Overseen by the Company’s Executive Committee, theCompany continued to review how to integrate human rights
due diligence for defence sales through existing processes andtools with a view to mitigating the risk of misuse of its defence
products. Actions during 2023 include:–– Recognising that human rights considerations already exist
in the stringent export compliance process, the Company
continued its assessment of the integration of human rights
due diligence, upstream of the export control process, toassess the level of risk of potential misuse. This takes into
account country risk (based on publicly available indices) andintended product use and will support a decision to progressto the export control stage.
–– The completion of a pilot phase to test the practical applicationof the approach through a number of hypothetical sales
campaigns.
–– A revision to the standard conditions of sale for the Company’s
Defence and Space and Helicopters divisions to act inaccordance with national and international human rights
regulations applicable in their respective countries includingin this regard and in any case, the Arms Trade Treaty and the
Geneva Convention.
–– The development of a process to support integration once
fully approved.

Further actions will continue during 2024 including the trainingof relevant sales and export control teams on the application ofhuman rights due diligence. Plans to review the integration of
the provision of parts and services will follow.

Grievance and remediation
During 2023, the Company continued to promote its SpeakUp
and ListenUp culture related to human rights concerns, including
reinforcement of the use of its OpenLine reporting system within
its revised Supplier Code of Conduct (see “– 1.2.15 Responsible
Supply Chain”). For details regarding the Company’s OpenLine,see “– 1.2.14 Business Integrity”.
If an alert is received via its OpenLine reporting system, theCompany commits to acknowledge receipt of the report assoon as possible. 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. If an allegation of humanrights breach received from within the Company or through its
supply chain or other third-party business relationships is foundto be substantiated, remedy would be sought through a variety
of mechanisms.

IV. Implementation / Activities
Awareness raising and training
In 2023, the Company continued to raise awareness of humanrights, including how to identify risks and what to do if people
have concerns. Actions on training follow:–– The Company made two eLearning modules on humanrights (introduction to human rights and introduction tomodern slavery, both available in four languages) part of thecompulsory training for all employees of the Company during2023, leading to an increase in participants vs. previous years.
During the period 1 October 2022 to 30 September 2023,
89,759 participants completed this training (107,446 in total
since its launch in 2018). These two e-learning courses will
be part of the Company newcomer onboarding training fromJanuary 2024 onwards.
–– The Company also continued to include a dedicated humanrights eLearning module in the compulsory training for its
executive population including the heads of its subsidiaries
and controlled affiliates. Whilst going deeper into external
and internal requirements and due diligence practices, theeLearning module has been designed to enable managers
to contribute to respecting human rights, including in theirarea of responsibility. From 1 October 2022 to 30 September
2023, 3,917 participants completed the training (4,406 since
its launch in 2022). From January 2024 the training will also be
available in a format compatible with smartphones and tabletsfor easier access, as well as being available to all employeesof the Company.
–– Furthermore, during 2023 the Company continued the rollout of its in-depth virtual small group interactive training
aimed at buyers and supply chain quality managers focusedon human rights and in particular, aligned to the Company’ssalient issues, identifying forced labour. 150 people attended
the training over ten sessions with more sessions planned
during 2024.

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Airbus Annual Report 113

1

1. Information on the Company’s Activities
1.2 Non-Financial Information–– The Company’s commitment to human rights has also
been built into the “Introduction to Sustainability” eLearningwhich will be part of the highly recommended training for all
employees in 2024.
–– Additional topic-based training relating to human rights is
also available to all employees of the Company, including
inclusion and diversity topics such as unconscious bias andharassment.
Example of actions on communication follow and will continue
throughout 2024:–– During 2023 the Company published a number of articles onhuman rights internally via its Hub Portal and Airbus TV. This
communication was aimed at demystifying human rights aswell as focusing on topics such as forced labour and wellbeing,
and included interviews as well as opportunities to provide
comments and feedback.
–– The Company also held a dedicated “valuing people weblive”,
available to all employees of the Company and recorded for awider reach, focused on respect for human rights and fostering
inclusion.
–– In addition, “demystifying human rights due diligence” was oneof the key sessions at the Company’s Sustainability Townhall
event which was attended by over 700 people (in person andvirtually) featuring a talk on forced labour by Andrew Wallis
OBE, CEO and Founder of Modern Slavery Charity, Unseen.

Stakeholder engagement and collaboration
During 2023, the Company continued its membership of the
Global Business Initiative on Business and Human Rights (GBI),a specialist peer learning group focused on advancing respectfor human rights throughout the world.
The Company is also a member of a number of industry tradeassociations which during 2023 held focused discussions on
progressing human rights within the aerospace and defence
industry. These include ASD (the Aerospace and Defence
Industries Association of Europe), GIFAS (French Aerospace
Industries Association), BDSV (German Industry Associationfor Security and Defence), ADS (UK Industry Association for
Aerospace, Defence, Security and Space) and TechUK (the UK’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, civilsociety organisations and peers. In addition, an update of the
Human Rights Roadmap was also presented to key internal
stakeholder groups including the SE-WC comprising social
partners from across the Company’s European sites.

Regulatory complianceDuring 2023, in accordance with the UK Modern Slavery Act
and the Australian Commonwealth Modern Slavery Act, theCompany published a Modern Slavery Statement outlining the

114 Airbus Annual Report

Universal Registration Document 2023

actions 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, theCompany completed the UK Ministry of Defence (MoD) Modern
Slavery Assessment Tool. The Company also published a Human
Rights Policy Statement as part of the new German Supply Chain
Due Diligence Act.

V. Outlook
During 2024, 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:–– progressing actions identified as part of the Company’s humanrights roadmap;–– progressing response plans related to its identified salient
human rights issues;–– progressing social assessments focused on human and labour
rights throughout the Company’s sites;–– progressing sustainability assessments of identified high risk
suppliers;–– capacity building with key teams including development oftraining, communication and awareness raising;–– ensuring alignment of actions with current and upcoming
legislation.
Neither the Company (including its subsidiaries) nor its joint
ventures develop, produce, or distribute any “controversial
weapons” as listed within Annex I of the Commission
Delegated Regulation (EU) 2022/1288 supplementing EU
Regulation 2019/2088 (Sustainable Finance Disclosure
Regulation (“SFDR”)) for Principal Adverse Impact indicator
14. This includes biological weapons or chemical weapons(in accordance with the Biological Weapons Convention
and the Chemical Weapons Convention), cluster munition(Oslo Convention) and anti-personnel mines (Ottawa Treaty).
Consequently, the Company does not have any exposure to
the Principal Adverse Impact indicator 14 under the SFDR
criteria.
The Company participates in two joint ventures that contributeto France’s nuclear deterrence (ArianeGroup and MBDA),
including the production and support of missile systems. These
activities are compliant with the Treaty on the Non-Proliferationof Nuclear Weapons. The Company’s reported revenues do
not include any revenues relating to these activities (accounted
for using the equity-method) as it does not have exclusive
control of the joint ventures.

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

1

1.2.11 Inclusion and Diversity
I.

Introduction–– “Respect human rights and foster inclusion” is oneof the four sustainability commitments. This priority reflects
the focus the Company puts on inclusion & diversity (“I&D”)
and is illustrated by the 154 nations that its employees
represent. An I&D position statement outlines the Company’scommitments to creating a safe and inclusive culture, including
zero tolerance to discrimination and harassment, while theCompany’s Code of Conduct and Supplier Code of Conduct
express the expectations towards both employees andsuppliers in this respect.

Inclusion & diversity–– In accordance with ILO Convention C111 (discrimination –employee and occupation), the Company is committed tocreating an inclusive working environment, upholding equal
opportunities and is intolerant of any form of discrimination
against employees, partners, customers, stakeholders andanyone else with whom it has any contact or on whom it canhave an impact. The Company is committed to all aspectsof employment being based on merit and actively seeks tofoster inclusive leadership. This includes hiring policies andpractices, earnings, employment conditions, access to training,development and promotion and termination of employment.

GRI

SDGs

Others405 Diversity and Equal Opportunity,
406 Non-discrimination

4, 5, 8, 16

Vigilance
Plan

Highest governance body(ies)involved

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

Related corporate policies/
documents

Human Resources Airbus Company Policy, Airbus Code of Conduct, Airbus Supplier Code of Conduct,
Airbus Framework for Prevention of Harassment and Discrimination in the Workplace

External standards
or frameworks taken
into accountUniversal Declaration of Human Rights,
OECD Guidelines for Multinational Enterprises,
ILO Conventions

TargetTarget horizon

2022

2023

2023
vs. 2022

33%

2023

27%

26%

-1p.p

% women in Board of
Directors

33%

2023

33%

33%

+0p.p

% women in senior
management – Executives

20%

2023

16%

20%

+4p.p

Number of men in senior
management – Executives

821

746

Number of women in senior
management – Executives

157

183

Other key metrics(More in “– 1.2.17 ESG Data Board”)

2022

2023

2023
vs. 2022% women in active workforce

20%

20%

+0p.p

% women in Executive Committee

25%

25%

+0p.p

% women in “Level IV” managers

17%

18%

+1p.p

KPIs
% of external hires to befemale (active workforce)

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 ,France Gender Pay Gap Statement 2022 , 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 , Handi Proconseil

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

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 poolof talents. This talent is a reflection of the Company’s customer
and supplier base as well as the communities around;–– develops a thriving work environment supported by its values
system, leadership model as well as a Code of Conduct
understood and lived by all;–– is committed to have a positive long-term sustainable impact
not only in the aviation sector but also in the communities theCompany works in by being signatories to the Sustainable
Development Goals (SDG).

In order to actively follow the four sustainability commitments,
dedicated training courses on I&D related matters arepermanently available to all employees and promoted within
the learning catalogue. With a special focus on leaders, theCompany launched a “Management Basics & LeadershipFoundations Programme” in 2020 to ensure that inclusive
leadership becomes the norm at all levels. In 2023, the MyWay
Women leadership programme, dedicated to women leaders of
tomorrow, registered 100 women, maintaining the numbers as
the previous year. To date, this programme has trained over 320
women, including the current cohort. The Company’s leadershipdevelopment programme participation is balanced in terms ofgender representation.

II. Governance

Gender diversity in senior management –executives

The I&D team is part of the “DEVELOP Centre of Expertise” within
the Human Resources function and represents the Company
with regional I&D focal points supporting the implementation of
the I&D strategy globally.
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 makes appropriate
recommendations to the Executive Committee.
In addition, local I&D Steering Committees, championedby “Level IV” 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 and advisoryboard. The Steering Committees are supported by a network ofdiversity business champions embedded in the business, who
advocate for an inclusive working environment.

III. Risk Management
Any identified risks related to I&D are recorded in the Company’s
ERM and appropriate action plans agreed. Progress is reviewed
quarterly. In addition, any alerts related to I&D raised via the
Company’s SpeakUp culture, including its OpenLine reporting
system, are investigated in accordance with the Company’s
investigation process.

IV. Implementation / activities
Gender diversity
The Company supports various national and international
initiatives such as International Women’s Day, and since 2018
the Company has 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.

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Further dedicated role model sessions called Women@Airbus,
digital recruitment events to encourage more women to apply
to the Company, have been carried out online with over 500
women participating. During 2023, the Company disclosed its
gender pay gap as required by both French and UK legislation,and continues to put measures in place to ensure gender pay
parity worldwide.

The Company strives to accelerate female representation inleadership roles. Accordingly, it has set targets for gender
diversity in Executives management positions, associated witha dedicated action plan. It includes slots in dedicated leadershipprogrammes, aimed at development of leaders selected fromacross various geographies and functions. In 2023, performancestood at 20% against a 20% target, which is a 4p.p. increaseyear-on-year. The company is committed to pursuing efforts,
focusing on leadership programmes, mentorship, sponsorship,targeted recruitment and strengthening promotions pipeline toenhance female representation on executives positions.

Other diversity dimensions
The Company is also accelerating change through its employeeled Employee Resource Group “Balance for Business” network,
which has around 10,000 volunteer members worldwide.
Initiatives run through this network include roadshows promoting
employee-led initiatives such as peer-to-peer mentoring,
confidence building and encouraging employees to challenge
stereotypes and build their careers. The network also supports
some outreach initiatives.
Other employee-led networks such as WIN Together, the Airbus
Africa Network, Full Spectrum (Racial diversity and inclusion),
SOMOS (LatinX America), 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 awarenesson disability across the Company worldwide. This includes aseries of workshops and awareness sessions on topics suchas: digital accessibility, workplace adaptation and mental healthcare. During the 2023’s campaign, more than 3,380 employees
participated in live workshops, and over 30 events wereorganised worldwide. These events are also an opportunity for
the Company to share some of the initiatives set up internally,such as Airbus Humanity Lab showcasing prosthetic blades
made from recycled carbon from a production line.

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

Highlighting that being unique is valued and that difference iswelcome, the Company ran an awareness campaign during 2023
to promote awareness of the importance of removing stigma
associated with disabilities.
During 2023, the Company continued to engage in various
social diversity programmes in partnership with a numberof different associations to promote quality education andmentorship for young people from underprivileged areas. For
example, the Company participated in the French government’s
initiative “La France, une chance. Les entreprises s’engagent!”
to encourage companies to help everyone find their place insociety by taking actions such as recruiting from underprivileged
areas, promoting education learning and committing to
responsible purchasing (inclusive supply chain). To this end, aforum dedicated to inclusive supply chains in particular for thedisability dimension was organised. In the United States, “Flight
Path 9”, an apprenticeship programme, supports induction ofyoung talent from underrepresented communities in production.
The Company’s social diversity programmes and community
impact strategy (see “– 1.2.16 Community Impact”) are closely
connected, with a focus on equity and inclusion.

1

V. Outlook–– In 2024, the Company will pursue its I&D ambition, aiming
at embedding I&D in everything it does. Priorities for 2024
include continuing the Company’s focus on gender parity,
while simultaneously strengthening focus on other aspects of
the I&D strategy such as disability, nationality and cognitive
diversity. Upcoming actions on I&D include:–– eliminating systemic barriers during talent recruitment,
development and management;–– further maintain focus on reaching targets for external
recruitment of women;–– extending leadership development programmes to include a
focus on I&D and in particular on gender diversity;–– increasing awareness and training on inclusive leadership andcollaboration at individual and team level;–– 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.

1.2.12 Social Dialogue
I.

Introduction

In 2023, the Company continued its numerous discussions,consultations and negotiations with its social partners, sometimes
on a daily basis in order to discuss Company transformation
projects, the evolution of Company agreements, measures tosupport production ramp-up, or cope with the evolution of theeconomic environment.
Social dialogue

GRI

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.
SASB

402 Labor/Management Relations

SDGs

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

Executive Committee

Related corporate reference
documents

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

Company’s commitments totake into account external
standards / frameworks

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

Key metrics

2022

2023

7

5

ca. 80%ca. 80%

Number of meetings with SE-WC (agreement says 4 per year)% workforce covered by collective bargaining agreements
Additional resources

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 it strives to respect the regulation regarding fundamental
human rights, equal opportunities, free choice of employment,
as well as prohibition of child labour and respect and 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).

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

This includes respecting the rights of employees to exercise
lawful rights of free association, including joining or not joining
any association of their choice within the appropriate nationalor local legal framework, without fear of reprisal, intimidation,interference or harassment. Where employees are represented
by a legally recognised union, the Company is committed toestablishing constructive dialogue with their freely chosen
representatives, with whom the Company is committed tobargaining in good faith.
The head of each business is responsible for ensuring
compliance with these principles. The provisions of the IFA
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 has a long tradition of making employee
relations and social dialogue a priority and, therefore, theircontinuous evolution and improvement are embedded in
the Company’s Human Resources strategy, supporting theCompany’s business challenges and the sustainability roadmap.
It includes discussions about the identification and mitigationof risks inherent to the Company’s activities and those of its
suppliers with regards to human rights, environment and health& safety. In cases of restructuring, the Company strives to limit
as much as possible the negative impacts on its workforce
and considers employment as a priority. As an illustration, thelast restructuring plan implying significant workforce reduction
was completed in 2021: the COVID-19 adaptation plan resulted
in the signature of various collective agreements by the main
unions and 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.
Regular social dialogue is ensured at global, European andlocal levels, in line with ILO requirements and local legislation,in addition to Company agreements such as the Company’s
European SE-WC agreement, updated in 2018. Sites outside
Europe are also covered by the Company’s IFA, framing thesocial dialogue and social culture taking into consideration
the local labour legislation, culture and practices of respective
countries.
In line with the Company’s global social dialogue strategy,
discussions with social partners take place at local or European
level as well as at global level thanks to the Airbus Global Forum(“AGF”), reflecting the Company’s engagement for a responsible
social dialogue. AGF seat allocation for employee representatives
is based upon Company’s headcount distribution across theglobe 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
Deal for Decent Work and Inclusive Growth initiative (“Global
Deal”) that was developed in cooperation with the ILO andOECD. The Global Deal is a multi-stakeholder partnership

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between governments, business and employers’ organisations,trade unions, civil society and other organisations that seeks
to make economic growth work for all against a backdrop of
rapid changes in the world of work. Furthermore, the Company
has regular discussions with some national and international
trade union federations.

III. Risk Management
Employee relations are part of the Company’s risk management
process and related risks are reviewed internally on a quarterly
basis. During 2023, employee relations teams continued tofocus on ensuring legal compliance regarding national labourlaws and investing in training the Company’s HR professionals
about labour law. The Company’s approach to risk management
is also reinforced by the OpenLine reporting system, whichallows employees to report concerns anonymously (wherelegally permitted). See “– 1.2.14 Business Integrity”.

IV. Implementation / activities
During 2023, the Company continued activities aimed atstrengthening collaborative and partnership approaches with
unions in various countries. The main focus has been on
preserving global social dialogue, supporting major employee
representatives elections, addressing Company transformation
projects as well as informing and consulting about employment,
working conditions and sustainability.

Preserving a global social dialogue
In Europe, five European committees have taken place at
Company level in 2023, including discussions about theCompany’s strategy and operations, as well as the Divisions’activities and sustainability. At the Airbus Helicopters Division,
four European committees took place. The main topics discussed
were the follow up of the Division’s performance and strategy, theindustrial strategy, the supply chain, key programmes’ situationand more globally the Division’s transformation, focusing inparticular on digitalisation, leadership and its environmental
roadmap. At the Airbus Defence and Space Division, fiveEuropean committees took place. The main topics were theDivision’s strategy and performance with a focus on sustainabletransformation, including the new Target Operating Model (seehereafter), which went live on the 1st of January 2024.
During 2023, the social dialogue continued in the regions
based on local exchanges between the management teamand employee representatives. For example, in the context offostering social dialogue in APAC, countries such as South
Korea and Thailand have established welfare committees
dedicated to the advancement of mutual interests of bothlabour and management through collaborative efforts. Taiwan
on the other hand has appointed employee representatives tofacilitate social dialogue between labour and management.
Meanwhile in Malaysia, an equally valuable though less formal
approach was taken, providing opportunities for dialogue andengagement between employees and management. These
diverse mechanisms, whether formal or informal, play a vitalrole in nurturing a constructive atmosphere for meaningful
discussions.

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

Training sessions about social dialogue have taken place for
the HR community, explaining why social dialogue is important
for the Company and how it is structured, while also including
updates about employment law.

Supporting employee representative elections
The Company continued to support the organisation of employee
representative elections. In France, employee representativeelections took place in 2023. Simplification of the voting process,a communication campaign and training of managers on theimportance of social dialogue have all contributed to an increased
participation rate (77.85% vs. 72.09% in 2019). Also in Spain,
employee representative elections took place. Employees haveparticipated in the election of those who will represent them in
the negotiations of the Collective Bargaining Agreement for the
next four years (2024-2027).

Supporting Company transformation
Numerous discussions with the Company’s social partners havetaken place to support the new Target Operating Model at Airbus
Defence and Space (ATOM), resulting in three new BusinessLines with end-to-end responsibility: AirPower, Space Systems,
Connected Intelligence and the newly created COO organisation.
Also discussions have taken place at European and national levelto explain the new governance and roles of the management
team at Company level and in the commercial aircraft business.
In Spain, the discussions about the consolidation of the industrial
activities and the maintenance of workload in the Centro Bahía
de Cádiz (CBC) work centre were continued and concluded
successfully on 1st of July 2023. The agreement is planned to
be implemented during 2024 and 2025.

Supporting employees
In 2023, the Company carried out constructive dialogue with
its social partners to negotiate salary increase policies where
relevant with its employee representatives committees or in theframe of collective bargaining negotiations.

Furthermore, the Company continued to prepare for the futureof employment and working conditions together with social
partners:
In Spain, the Company continued with the social dialogue inorder to carry out the commitments included in the VI CBA,
(Spanish Collective Bargaining Agreement). An extraordinary
salary review was also negotiated in 2023 as well as an “Equality
Plan” in order to achieve equal treatment and opportunities forboth women and men and to eliminate any kind of discrimination.
In France, the Company continued the major transformation
project called Reload which started in 2021, aiming at simplifying,modernising and harmonising Company agreements related
to compensation, benefits, grading, working time duration,
health, safety and working conditions to make them morereadable for its employees and adapted to the Company’s
challenges. Agreements about employee saving plans, genderequal opportunity, employment and career development wereconcluded in 2023.
In Germany, social dialogue mainly focussed on supporting theramp-up activities, the harmonisation of remuneration for middle
managers and the renewal of collective agreements regarding
workforce flexibility.
In the UK, the ballot on pay negotiations, including two different
employee groups, was successful.

V. Outlook
In 2024, the Company aims to continue its dialogue with social
partners, sharing its strategy, its organisational changes andpreparing for its evolving ways of working, as was done in 2023.
Other key areas will be the continued ramp-up of its activities
and the transformation projects which will be essential to theCompany’s future success. Furthermore, it aims to further driveinternational social dialogue between the Company’s top leaders
and its employee representatives from the Company’s homecountries and regions through the organisation of the 4th Airbus
Global Forum.

1.2.13 People
I.

Introduction

The Company’s employees draw on each other’s expertiseand experience and put all their passion and determination topioneering sustainable aerospace. Human Resources is at theheart of the Company. The current priorities of the Company’s
HR function within its People Strategy are:–– engaging, inclusive and high performing leadership;–– skilled workforce and an agile learning organisation;–– inclusive workplace and simplified ways of working;Workforce
As of 31 December 2023, the Company’s active workforce
amounted to 147,893 employees (compared to 134,267 employees
in 2022), 96.1% of which consisted of full-time employees. Thesestatistics take into account consolidation effects and perimeterchanges throughout 2023. Depending on country and hierarchy
level, the average contractual working time is between 35 and40 hours per week.

2022 and 2023 confirmed the strong aerospace industry recovery,
enabling the Company to accomplish its recruitment plan with aparticular focus on new skills, diversity and generational renewal.
As part of this, the Company has expanded its programme towelcome university graduates from all around the world, theAirbus Global Graduate Programme.
The Company’s workforce is 88.6% based in Europe, acrossmore than 100 sites. Concerning the nationality of its employees,
34.6% are from France, 31.1% from Germany, 6.9% from the UK
and 10.5% from Spain. The evolution of the Company’s global
presence is seen in the increase of the workforce located outside
the Company’s home countries (20,815 vs. 18,374 in 2022) andthe increase of nationals from outside the Company’s homecountry nationals (17.0% vs. 16.2% in 2022), coming from 150
other countries (vs. 143 in 2022).

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1

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

Workforce by business segment, geographical area. The breakdown of the Company’s employees by business segment andgeographical area, including the percentage of part-time employees, is available in “– 1.2.17 ESG Data Board”.
PeopleGRI

SASB

401 Employment
404 Training and
Education
Executive Committee

Related corporate policies

Human Resources Airbus Company Policy

Key metrics(More in “– 1.2.17 ESG Data Board”)

2022

2023

Total number of employees

134,267

147,893

Number of Classroom Training(2)116,363

163,194

Number of Digital Training

1,645,816

2,052,149

Total training hours(2)1,786,274

2,177,325

Average training hours per employee(2)

15

17

(2)

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

(1)

SDGs

Breakdowns available
in the ESG data board

The Company’s headcount reporting includes all consolidated companies worldwide. 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 structurereporting covers 100% of the Company’s total active workforce from consolidated companies.
(2)
Reporting period: from 1 Oct to 30 Sep.
(1)

Code of Conduct , Airbus Global Workforce Forecast Book , Working at Airbus ,Airbus International Framework Agreement , European Commission – Pact for Skills
Employer awards 2023: Universum , Glassdoor , Top Employer Institute , Forbes

Additional resources

II. GovernanceIV. Implementation/Activities

The Company’s workforce is managed by the Human Resources(HR) function, guided by a set of HR policies and a strong social
dialogue. HR policies are discussed and agreed with social
partners through continuous and regular meetings at global
and local levels. The overarching HR policy is applicable to all
employees and provides them with the description of the corevalues, mission, vision and top level initiatives for HR management,in accordance with Company’s Mid-Term Strategic Plan, andexternal requirements and is also aligned with the Company’scommitment to the International Framework Agreement (IFA).

Strategic workforce planning

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, every two years
the Company measures the perception of its employees on
where the Company stands in terms of Company culture andengagement through the “My Working Environment” survey. The
latest campaign was in 2023, with a survey period from 30 May
to 23 June. Just like the last two surveys (2019 and 2021), thisyear’s participation is above 60% which provides representative
data for analysis. Employees’ feedback provides valuable input
to define an action plan on Company level, leveraging theCompany’s cultural strengths to build on and directly address
the concrete pain points to be improved. The Company culture
and engagement are regularly measured to keep track of the
progress and adjust actions.

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The Company’s strategic workforce planning, a multi-year
workforce outlook, is performed annually within the various
business functions in order to manage workforce relatedrisks and opportunities in the context of the execution of thebusiness strategy. Two steps enable the Company’s strategic
workforce planning, namely, a quantitative 2-5 year outlook
based on workload scenarios, and qualitative businessdiscussions performed as part of the resource review.
The qualitative part of the strategic workforce planninggenerates a set of actions related to the business strategy,
competence strategy, demographic changes, employment
strategy, knowledge management and global footprint.
In addition to the management of workforce risks andopportunities, the strategic workforce planning results support
discussions with social partners and external workforce
suppliers. A specific focus is currently put on strategiccompetencies such as hydrogen, propulsion, model-based
system engineering, robotics/automation, artificial intelligenceand cyber security.

People development, performance management
and competence assessment
The continuous development of all employees is essential todeliver business success. The Company strives to provide anenvironment that offers stimulating professional opportunities
and the means for continuous growth and development in linewith its strategy.
An annual process derives a short, mid- and long-term
Competence Strategy that is aligned with the Company’sbusiness strategy by:–– anticipating the supply and demand of competencies;

1. Information on the Company’s Activities
1.2 Non-Financial Information–– 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 competenceneeds required in the long-term, such as cryogenics, hydrogenstorage, quantum computing, quantum sensing and autonomy/
autonomous systems are analysed in order to identify specificmeasures that need to be taken. For example, the Company
partners with academic institutions to ensure the supply of
emerging competencies of the future. In that respect, theCompany currently collaborates with more than 200 universities,
including 15 strategic partners. In addition, the Company isparticipating in external forums on competence evolution, suchas the World Economic Forum, European Commission and otherregional forums (see “Training and Mobility” below).
The Competence Assessment is a means to identify potential
gaps in the expected skills and knowledge of employees linked totheir current position, and can be used to identify the employee’s
development needs. The Competence Assessment can be
performed whenever necessary though it must be completed
at least once every two years, and is highly recommended tooccur within the first month as a result of career mobility or asignificant change to an existing job.
There are several “moments that matter” throughout the calendar
year via the annual “People Tempo” which outlines the various
key HR processes linked with the employee’s experience of
Performance and Development. In this respect, conversations
between managers and employees form a continuous andongoing dialogue to enable regular and frequent engagementon the topics of performance and development throughout
the year whilst ensuring an agile approach towards adapting
in relation to business priorities as these evolve throughout theyear. In order to ensure that quality time is dedicated to focus
on the employees’ development, the Company has, as part ofits annual talent management cycle, implemented a systematic“Development Talk” for all employees (with their line managers).
This is an exchange between the manager and the employeethat can take place as often as needed (though at least once ayear) with the intention of discussing the individual development
plan of the employee and to align professional career aspirations
with the Company’s organisational requirements. Managers areencouraged to hold these discussions during quarter one inorder to align the development activities for the year with theemployee’s individual performance goals and collective (teambased) performance objectives. Furthermore, a mid-year review
is held to align on progress and identify opportunities for further
development throughout the year.
The Company provides employees with a portfolio of selfawareness solutions and feedback tools (such as 360 feedback
from team members, stakeholders or peers) that can be used tosupport the employee in their professional development. At any
time throughout the year, employees can use the human capitalmanagement software deployed at the Company to “request
feedback” from their singular stakeholders in relation to theirperformance and development. Furthermore, the Company
provides a platform whereby employees can launch a “360feedback” survey to understand feedback from stakeholders(at the same level, below or above them in the hierarchy) in
the framework of the Company’s values and leadership model(which is used to assess the performance and development of
employees).

The actions that will be taken to support their development areformalised by the employee in their Development Plan’ which isthen validated by the manager. These actions usually consist ofa mixture of learning experiences – projects, missions or career
mobility –, social learning – peer-to-peer development, coaching
and mentoring –, and formal training – courses, certifications
and diplomas.
Then, at the turn of the year, managers conduct a formal
assessment of the employee’s performance contribution andcomplement this with an appraisal discussion with each memberof their team to discuss feedback on performance, opportunities
for development and career growth.

Training and mobility
Again in 2023, 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, health and safety, productsafety, cyber security, internal controls, inclusion and diversity,
quality and sustainability awareness. This approach allows theCompany to ensure employees are well informed, trained andaware about those key topics related to major Company priorities.
In 2023, 115,992 employees completed this compulsory learning
plan.
From October 2022 to September 2023, the Company provided
about 2.2 million training hours to employees. In addition
to the physical classroom and digital training, more than
75,000 employees benefited from other leadership development
and transformation solutions proposed by the Airbus
Leadership University. The Leadership University continues
to strengthen the Company’s approach to leadership, offering
opportunities for all managers to drive their development, while
accelerating the culture evolution and human transformationof the Company. It offers a range of leadership programmes
which focus on developing self-awareness, leadership mindset,
purposeful leadership and people leadership capabilities. One
such programme that is currently offered is “Management
Basics & Leadership Foundations (MBLF)” which is a refresher
training available to all managers, allowing them to revisit andexplore the most essential elements of managing and leading
people in challenging times. As one of the main objectives
is to drive collaboration and engagement in the context of aproperly managed performance cycle, the aim is to increaseteam efficiency and effectiveness. Between 1 October 2022
and 30 September 2023, over 1,200 managers completed aleadership programme training. The solutions provided by the
Leadership University equip the company’s managers to better
apprehend their daily challenges and develop strategic thinking.
In addition to learning solutions and opportunities for professional
development, the Company has well established career anddevelopment paths – as an alternative to management career
paths linked with the Airbus Leadership Model – that are focusedon expertise in their domain. These opportunities enable
employees to develop specific skills and competences – notably
in the streams of project and programme manager, architect,integrator or expert career paths.
The Company is also involved in many regional and European
initiatives to address the up-skilling and reskilling challenge,such as Clean Aviation, DACSO (Diagnostic Aéronautique
Compétences Sud Ouest) / DECSO (Diagnostic Espace
Compétences Sud Ouest), and Hydrogen Europe. The Company
is working together with aerospace and defence industrial

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1

1. Information on the Company’s Activities
1.2 Non-Financial Informationcompanies, public authorities, and education and training
providers, to build common upskilling and reskilling programmes
and explore ways of working together in skills partnerships.
Mobility of employees within the Company provides overall
benefit and value. Mobility helps employees develop new skills
and competences and serves the business by bringing new ideas
and broader perspectives to teams, while ensuring the Company
has the right skills in the right place to secure the future. In
2023, more than 10,700 employees changed jobs throughinternal mobility. In 2023, the Company decided to reinforce
the importance of mobility as a tool for employee engagementand development, that’s why from 2024, all jobs (except criticalones where an external acquisition is needed) will be available
only for Company’s employees for a minimum of one month,
before going external.

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.
The Company compensates employees in line with applicablelaws, in accordance with the terms of applicable collective
bargaining agreements and relative to the industry and local
labour market. In addition, the Company is currently reviewing thepractical implementation of a commitment to a living wage for its
employees in line with relevant benchmarks and methodologies.
The Company’s remuneration practices integrate national
regulation requirements and internationally recognised
conventions such as the ones established by the ILO standards,
including regulating working hours, resting hours, maximum
consecutive days of work and annual leave. All hours worked
beyond the normal work week and approved by management
are handled as per applicable legislation, regulations andagreements (e.g. compensatory time-off, paid overtime, timesaving account, etc).
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 implemented, at least in compliance withnational regulations.
Some benefits or specific worldwide schemes are implemented
such as sharing the financial and operational success of theCompany with the employees (international success sharing
scheme deployed for around 130,000 employees in 2023) ordeveloping the Company share ownership culture (Employee
Share Ownership Plan).

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Employee Share Ownership Plan (“ESOP”)
The ESOP allows employees to participate in the success of theCompany and to become shareholders of the Company every
year. This plan is an investment opportunity to acquire a certain
number of Company’ shares, which is open to the employees inmore than 40 countries. Introduced in 2011, the ESOP scheme
is a “share matching plan” in which the Company matches thenumber of shares bought by the employee according to set
criteria. An eligible employee in the frame of ESOP 2023 is part ofan entity which is at least 50% owned by the Company, and has
been an employee between 31 December 2022 and 15 March
2023. In 2023, more than 75,000 eligible employees seized theopportunity to subscribe and 2.2 million shares were distributed
to employees through the plan ESOP 2023.

Other benefits
Employees throughout the world benefit from several measures
empowering their work-life balance, such as remote or hybrid
working flexibility when it is compatible with their job position,
as well as flexible hours or part-time arrangements in place inseveral countries. Family-friendly measures continue to grow,with 64% of staff covered by maternity and paternity benefits
beyond the statutory minimum, in terms of duration of leave
and/or salary compensation during the leave. In addition, over
78% of the staff has access to either on-site kindergarten orcompany-sponsored childcare services (for example in Spain,
France, Germany, India and Canada).

V. Outlook
In 2024, the strategic people priorities are expected to remainsimilar as in 2023:
Engaging, inclusive and high performing leadership. Throughits global network of Leadership University campuses, theCompany will continue to invest significantly in strengthening thecapabilities of its leaders centred around developing adaptive,
performance-oriented, technology-focused and purpose-driven
management and leadership. In addition, the Company willcontinue to bolster its leadership talent pool through strategic
hiring.
Skilled workforce and an agile learning organisation.
The Company’s recruitment strategy will primarily focus onaddressing critical skill gaps within European countries, while
also supporting business growth in Asia and North America.
Internal workforce development efforts will remain a key area of
focus, aiming to foster continuous growth and address criticalskill gaps through investments in emerging skill development.
The Company is committed to evolving into an agile learningorganisation by integrating formal, social and on-the-job learning
experiences.
Inclusive workplace and simplified ways of working.
Embracing the strength found in diverse perspectives,
backgrounds, and experiences, the Company is dedicated tofostering an environment where every individual feels empoweredand valued – see “– 1.2.11 Inclusion and Diversity”. The Company,
through the “BetterWorkplace” programme, will continue to work
toward giving every employee the workplace they need, the tools
they deserve and a culture they can celebrate.

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

1

Exemplify business integrity
1.2.14 Business Integrity
I.

Introduction

The Company’s Ethics & Compliance programme seeks toensure that the Company’s business practices conform toapplicable laws, regulations and ethical business principles, aswell as reinforcing a culture of integrity and speak-up.
In 2023, Ethics & Compliance continued to be a top priority for
the Company. In its list of priorities for the year, the Company
treats integrity and compliance as vital for its business.
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 Control Compliance and Privacy. Each ofthese areas is, in turn, supported by dedicated complianceBusiness integrity

policies and a team responsible for their implementation,
together with the identification and proposal of new measures
to adapt to a constantly evolving regulatory landscape.
In 2023 the Company closed the Deferred Prosecution
Agreements in the United States, the United Kingdom and France,
as well as of the Consent Agreement in the United States – See“Notes to the IFRS Consolidated Financial Statements – Note 38:
Litigation and Claims”
Improving the Ethics & Compliance programme remains a
constant and ongoing process, in cooperation with otherfunctions within the Company, in order to sustain and capitaliseon its 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

External standards taken into
account

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

2022

2023

Number of employees per appointed Ethics & Compliance Representatives

360

338

Number of employees per appointed Export Control Point of Contact

236

242

% of employees who completed the E&C training objective (Reporting period: from 1 Jan to 31 Dec)

96%

96%

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

290,178525,280

Of which Export Control e-learning sessions delivered to employees (Reporting period: from 1 Oct to 30 Sep)

149,426

367,187

3,181

9,255

Number of privacy e-learning sessions delivered to employees (Reporting period: from 1 Oct to 30 Sep)
Additional resources

Airbus Ethics & Compliance webpage, including CEO statement , Airbus Values
Airbus’ commitment on the protection of Personal Data , OpenLine , Compliance at Airbus

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.

third party due diligence, investigating compliance allegations,
implementing tools and controls and delivering compliancetraining.

The Company’s Chief Ethics & Compliance Officer, who reports
to both the General Counsel and the Ethics Compliance &Sustainability Committee (“ECSC”) of the Board of Directors,
leads a dedicated team of Compliance professionals who areresponsible for supporting and advising across the Company oncompliance related topics, supporting the day-to-day business,
performing risk assessments, drafting policies, conducting

In addition to the dedicated Compliance professionals, theCompany is coordinating a network of part-time Ethics &Compliance Representatives (“ECRs”), spanning all Divisions,functions and regions. The number of ECRs slightly increased in
2023, with a total of 445 ECRs at the end of 2023 (compared to
373 at the end of 2022). Although the ECR network members are
not compliance experts, they play an important role in promoting

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.

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

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 animates the ECR
network, providing continuous training and information to the
ECRs.
In February 2022, the Company launched the Export Control
Points of Contact (“EPoCs”) network, spanning both Divisions,functions, and regions. Similar to ECRs, EPoCs are not export
control experts but serve as “first line of defence” and the“go-to” individuals for export control matters. On the occasionof the launch, the Chief Ethics & Compliance Officer statedthat “by raising awareness among employees and acting as
local focal points for queries on Export Control-related topics
in their respective functions, EPoCs will be key contributors to
the Company’s common objective: embed an export control
compliance system and culture throughout Company’sbusinesses.” By the end of 2023, the network was establishedand active within the business (all divisions, functions andregions), with a total of 604 EPOCs.
Likewise, the Personal Data Protection Officer (“DPO”) relies ona team of privacy experts to guide, train and advise the businesswith respect to privacy requirements, and a network of Privacy
Focal Points in the business functions and affiliates, to support theCompany’s privacy programme. In addition, the dataprotection@
airbus.com mailbox is systematically published in the Company’s
privacy policies and information notices specific to the various
applications, to ensure that data subjects can exercise theirrights and/or lodge complaints.

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, the Company conducts a thorough bribery andcorruption risk assessment across its two Divisions and different
businesses annually. The results of this risk assessment areembedded and monitored within the Company’s ERM frameworkand highlight, among others, the risk of improper 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 theuse of sponsorships, donations, or political contributions toimproperly benefit decision-makers, or the provision of excessiveor overly frequent gifts and hospitality by Company employees.
In order to ensure its compliance with Export Control regulations
and laws in the EU, UK, US and all the countries where or withwhom it operates, the Company continues to strengthen its
Export Control compliance programme to ensure it is fit for
purpose. Where risks are identified, they are embedded andmonitored in the Company’s ERM. Identified risks include potential
unauthorised access to export-controlled data and hardware by
third parties and non-compliance with any regulations including
but not limited to the International Traffic in Arms Regulations(“ITAR”), Export Administration Regulations (EAR), European
Union and national military and dual-use regulations.
Operating worldwide, the Company must comply with several
sets of sanctions laws and regulations implemented bytransnational / national / regional authorities. The Company seeks

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Universal Registration Document 2023

to comply with all such laws and regulations. As such regulations
are constantly evolving, the Company has regularly enhanced its
dedicated policies and processes. On a risk based approach, theCompany is developing and implementing numerous mitigation
measures with regards to internal and external potential sanctions
circumvention, and notably with regards to any third parties it ispartnering with. Furthermore, the Company’s ability to market
new products and enter new markets may be dependent on
obtaining government certifications and approvals in a timely
manner.
Specific directives and methods have been adopted to address
the Company’s key compliance risk areas. These include among
others:–– 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 Gifts & Hospitality;–– requirements for Sponsorships, Donations and Corporate
Memberships;–– requirements for Supplier Compliance Review;–– requirements for Preventing and Declaring Conflicts of Interest;–– 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;–– 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.
Those directives and methods are applicable to 100% of theCompany and its controlled entities. For instance, with regards
to export control, 100% of the outbound shipments are required
to be controlled (KYC cleared, export control classification
performed, consignees/end-users systematically checkedagainst sanctions & embargoes lists, and against licenses/
authorisations/exemptions/exceptions/derogations whenrequired or applicable). Likewise, the directives and methods
require that 100% of purchased items shall be classified,notably through the collection of Export Control Classification
Documentation (ECCD) from the Supplier and 100% of intangible
data shall be classified, marked and labelled prior to any export
or transfer.
The Ethics & Compliance organisation is tasked with oversightand monitoring of these directives to ensure that it is 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.

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

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
As part of their annual goals and objectives, all Company
employees are required to undergo a minimum amount of ethics
and compliance training via e-learning. Additionally, dependingon the function, the country and the level of risk implied by theirrole, certain employees are selected to attend live classroom
training as well, including on Anti Bribery & Corruption and Export
Control. Attendance in such cases is mandatory, and managers
have a responsibility to ensure that their team members do so.
Exposed employees are also required to complete regulartraining refreshers.
From 1 October 2022 to 30 September 2023, the Company’s
employees followed 525,280 Ethics & Compliance e-learning
sessions, including on bribery, corruption and export control.
Furthermore, 9,964 employees attended live classroom training
on different Ethics & Compliance topics over the period. In 2023,
sessions were delivered both virtually and in person.
Likewise, the Company also delivered anti-bribery and corruption
training towards higher risk third parties, including sales
intermediaries, lobbyists and special advisors. In 2023, 100%of higher risk third parties were trained on Ethics & Compliancerequirements and expectations.
The Company continued the roll out of the privacy e-learning aspart of the Ethics & Compliance compulsory training catalogue.
A total of 9,255 privacy training sessions were performed in 2023
(reporting period from 1 October 2022 to 30 September 2023).

Speak-up channel: OpenLine
The Company recognises that the Code of Conduct cannot
prevent every situation that may arise, and therefore encourages
employees and third parties – including but not limited tocontractors, subcontractors, direct or indirect suppliers, andlocal communities around our and our suppliers’ sites – tospeak-up about concerns related to the Company. Concerns
may be raised through various channels, including through
OpenLine (available at https://www.airbusopenline.com). The OpenLine enables people to submit an alert securely
and confidentially. Employees may also report concerns tomanagers, HRBPs, Ethics & Compliance Representatives,
Privacy Focal Points, or Export Control Points of Contact.
The Company commits to protect those who speak up andraise concerns, and commits not to retaliate against anyone
who raises a concern in good faith, against those who assist
in investigations, or against other legally protected classes in
the jurisdictions where it operates. The Company has a specificmethod regarding principles of non-retaliation and encouraging
a “Speak Up” culture. The speak up channels and the nonretaliation principles are both included into various team talks,e-learnings, anti-bribery and corruption trainings, and otherwise
communicated frequently.
In 2023, the Company received a total of 1,200 alerts or
allegations of which 764 were HR related(1). Cases requiring
investigation are managed by dedicated members of the Ethics& Compliance team in accordance with an internal method on
how to conduct investigations. The Ethics & Compliance teamprovides regular updates to the pool of internal investigators
on internal policies, recent developments in the regulatory
framework and investigation best practices to ensure theconsistent deployment of compliance investigations acrossthe entire Company.

1,200 investigative requests received in 2023

436

HR-related
investigative
requests

Compliance-related
investigative requests

764

In some instances, the Company may engage outside
legal counsel for support, depending on the nature of theinvestigation.

The Ethics, Compliance & Sustainability Committee and otherrelevant stakeholders (including relevant authorities, if applicable,
and Company’s local management teams) are briefed regarding
the progress and outcome of key internal investigations on aregular basis.

(1) Covering harassment and bullying, discrimination and other breaches of HR policies or processes.

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Airbus Annual Report 125

1

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

Policies and procedures
In 2023, the Company continued to improve its Ethics &Compliance framework notably by enhancing the digital solutions
made available to employees in the fields of whistleblowing, gifts& hospitality or sponsorships & donation management.
All policies and guidelines are made available to employees on
the Intranet, and classroom training is delivered to employees
who are particularly exposed to the underlying risks as describedabove.
On the Export Control side, the Company has cascaded its
Export Control requirements through nine Directives andMethods throughout the Company. The cascading triggered an
update of the relevant business processes and documentation,completed at 99% at the end of 2023. In parallel, in 2023,
the Company has started to deploy digital tools, developed
through its Global Export Control Solutions (GECS) projectin order to support the fulfilment of those requirements withregards to, notably, classification, record keeping, screening,accreditation, tangible and intangible transactions complianceor access control securitisation. For instance, among many otherdigital tools, the deployment at the end of the year of “holdand release” automated solution in the Company’s commercial
aircraft activities ensures the compliance of 100% transactions
related to specifically targeted export controlled items basedon their classification, sanctions and export control screening
assessment, valid licences and corresponding accreditation.
To ensure the deployment of such tools, the validation of morethan 1.5 million export control classifications have been secured
by 2023 year-end corresponding to more than 300,000 partnumbers. Continuous efforts are ongoing to extend the scopeof deployment in the Company’s commercial aircraft businessand further deploy akin solutions within Airbus Helicopters andDefense and Space Divisions, core entities as well as subsidiaries
and affiliates in the years to come.

Responsible lobbying charter
The Company is committed to ensuring that any lobbying
activity is undertaken in compliance with all applicable laws
and its anti-corruption programme. In 2021, the Company
launched a Responsible Lobbying Charter aimed at anybody
who engages with public officials in any capacity, including third
party representatives retained by the Company. The Charter
outlines the Company’s core principles for responsible lobbying
and brings together the Company’s key 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.

1.2.15 Responsible Supply ChainI.

Introduction

At the end of 2023, approximately 19,000 suppliers from more than 90 countries supply parts, components, systems and services
to the Company.

Defence and Space
€6bn
12%

Commercial
Aircraft€40bn

Helicopters
€3bn

6%
Est.
€49bn
total 2023
spent
82%

In 2023, the Company’s external sourcing volume was estimatedaround € 49 billion and shared between Divisions with 82% for
the Company’s commercial aircraft business, 12% for the Airbus
Defence and Space Division and 6% for the Airbus Helicopters

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Universal Registration Document 2023

Division. Of note, figures on this chart may marginally change,as the data consolidation process was not finalised at the dateof publication.

1. Information on the Company’s Activities
1.2 Non-Financial InformationRESPONSIBLE
SUPPLY CHAIN

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

Vigilanceplan

1

Board of Directors / ECSC

Highest governance body(ies)involved

Sustainable Supply Chain Roadmap Steering Committee

Related corporate policies

Responsible Mineral Policy, Environmental Policy, Health and Safety Policy, Human Rights Policy, Anti
Corruption Policy, Supplier Code of Conduct

External standards taken into
account

Reference to certain international organisations standards or principles, in particular ILO andInternational Forum on Business Ethical Conduct, IFBEC have been included into the Airbus Supplier
Code of Conduct

KPIs

2023 Target

Percentage of sourcing volume of suppliers invited to CDP
who have responded2022

2023(1)2023
vs 2022

75%

78.0%

80.1%

+2.1p.p.

60%

99.5%(2)37.6%(3)-Percentage of sourcing volume covered by supplier commitment
to the Supplier Code of Conduct

89%

86.0%

89.9%

+3.9p.p.

Digitalisation of supplier substance data collection – supplier sites

700

298(4)

936(5)

-

2022

2023

16%

10.5%

Percentage of action plans defined for suppliers not meeting
the Company’s sustainability expectations

31%

50%

Percentage of responding suppliers to the CDP scoring A or B

66%

N/A(6)

43

133

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

Other key metrics
Sustainability assessment: percentage of assessed suppliers
not meeting the Company’s sustainability expectations (=red flags)

Number of sustainability alerts

Assumptions

Additional resources

(7)
(1)

Based on the 2022 sourcing report.

(2)

Desktop assessments based on 2019 risky suppliers.

(3)

Evidence based desktop assessments based on 2023 inherent risk mapping most risky suppliers(excluding Affiliates and Subsidiaries) list – see “Supplier Risk Mapping” section below.

(4)

For commercial aircraft business.

(5)

For the Company.

(6)

Scores not available by time of publication.

(7)

Sources include media screening, NGO reports, employees alerts or Supplier Compliance
Review (see section “Alerts and Grievance Mechanisms” below)

Supplier Code of Conduct , Environmental Policy Statement , Responsible Mineral Policy statement ,Be an Airbus supplier on Airbus.com , Human Rights Policy , IFBEC ,Responsible Minerals initiative , OECD Due Diligence Guidelines for Responsible Business Conduct

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Airbus Annual Report 127

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

In 2023, the Company sourced 89% of its total purchased volume from countries in which it has significant operations, includingFrance 32%, USA 25%, Germany 16%, United Kingdom 10%, Spain 4%, Canada 1% and China 1%.

in Europein NorthAmericain Asia

67%

26%

6%
<1%

<1%
<1%

in SouthAmerica<1%inAfricain Middle
East

in
Oceania

Company’s 2023 total spent regional split
While the Company’s products and services are sold all over
the world, the majority of its supply chain is based in Europe
and OECD countries.
The Company has established regional procurement offices
in North America (Herndon, VA), India (Bangalore), Asia Pacific(Singapore) and China (Beijing) to support local procurement
initiatives. The regional procurement offices represent theProcurement function in the respective regions. They are
responsible for strategic sourcing, general procurement andsupplier development (procurement operations) while supporting
the application of the Company’s procurement processes, policy
and digital solutions.
The Company strives to make environmental and social
responsibility a core element of its procurement strategy. This
includes managing the relationships with suppliers through thedifferent phases of the procurement process: sourcing strategy
definition, supplier selection, contract management and suppliermonitoring and development. The Company’s sustainablesupply chain ambition is built around the Company’s four
sustainability commitments. Derived from those, the Company’s
Sustainable Supply Chain Roadmap is based on a three-step
approach: supplier commitment, supplier assessment, supplierengagement and development.
This approach is based on the following key elements andprinciples of due diligence aligned with the OECD Due Diligence
Guidance for Responsible Business Conduct and applicable law:–– supply base risk mapping;–– supplier engagement and contractual requirements;–– supplier assessment/audits and development plans;–– policies, tools and reporting.
As the Company’s commercial aircraft business and its two
Divisions are certified ISO14001, the Procurement function acts
in adherence with ISO 14001 requirements.

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Universal Registration Document 2023

II. GovernanceIn order to drive the Sustainable Supply Chain Roadmap(“SSCR”), a quarterly Steering Committee chaired by the Headof Sustainability & Environment, the Head of Procurement
Governance & Strategy and sponsored by the Chief Procurement
Officer (“CPO”) of the Company is implemented. The Steering
Committee includes the Heads of Procurement of Airbus
Helicopters and of Airbus Defence and Space, and the Headof Ethics & Compliance, or their nominated representatives.
The CSO and Communications and the CPO of the Company
act as sponsors of the SSCR.
The CPO also reports to the ECSC on the progress of theCompany’s responsible sourcing strategy implementation.
Concrete sustainability targets have been included in the 2023
objectives of the Company’s CPO and are cascaded throughthe Company’s Procurement organisation:–– commitment by suppliers to Airbus Supplier Code of Conduct
for 89% of the 2022 sourcing volume;–– supplier sustainability assessments completed for 75% of the2022 sourcing volume;–– response of suppliers to CDP assessment for 75% of the2022 sourcing volume.
The Procurement function has further reinforced its cooperation
with the Legal & Compliance function for anti-corruption
topics in the supply chain as well as in the frame of the further
development of the Company’s due diligence mechanisms (see“– IV. Supply Chain Vigilance Plan”).
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 (“SCoC”), which is the document ofreference for the Company’s responsible supplier management.
This SCoC integrates the Company-wide values and principles,1. Information on the Company’s Activities
1.2 Non-Financial Informationin line with internationally recognised standards and conventions
such as UNGPs, OECD, ILO and IFBEC, covering human rights(such as child and forced labour, discrimination and harassment,
working conditions, health & safety and freedom of association)and the environment (such as emissions, pollution and waste
management).

III. Risk Management
The Company’s procurement-related risks and opportunities
are embedded into the Company’s ERM process. Risks andopportunities related to the deployment of the sustainability
roadmap in the supply chain are managed according to theProcurement ERM plan.
From the extraction of raw materials to the manufacturing ofparts delivered to the Company, suppliers’ operations may
have adverse impacts notably on the environment, the local
communities (see “salient human rights issues” in section“– 1.2.10 Human rights”) or the Company. The Company
deploys specific supplier due diligence actions in the frame of
the SSCR as described below to mitigate such impacts or theconsequences of suppliers failing to comply with environmental,
human/labour rights, health and safety laws and regulations.

IV. Supply Chain Vigilance Plan
The Company’s due diligence in its supply chain covers primarily
the Company’s suppliers (i.e. those with which the Company
contracts supply agreements, “Tier-1”); nonetheless, if an alert
is raised in relation to a supplier in the upstream supply-chain,
the Company will act on it as appropriate. The Company centres
its SSCR activities around the three following steps:

1)

Commit suppliers to the Company’s
requirements on sustainability

Contractual requirements
The Company’s standard procurement contract templates are
regularly updated and include a dedicated “Sustainability andEnvironment” clause which requires suppliers to:–– comply with all applicable laws and regulations in connection
with human rights, labour and employment, health and safety,
environment (including decarbonisation and circularity), anticorruption, bribery and personal data protection;–– provide information on substances contained in the products
and services and/or used in manufacturing processes(covering both substances of concern and conflict minerals);–– provide information on environment, health and safety
matters for management of products (including those usedin services), such as safe usage, across their life cycles(including waste management);–– implement an Environmental Management System based on
ISO 14001 or equivalent requirements;–– comply with the Company’s anti-corruption and bribery
requirements;–– commit to apply and cascade in its supply chain the principlesof the Company’s SCoC;–– perform supply chain due diligence and an annual sustainability
maturity assessment by an external specialist company;–– complete a sustainability questionnaire during the call-fortender phase and support initiatives to minimise waste in the
Company production sites (e.g. reusable packaging, buyback of overstock items). This questionnaire accounts for aminimum weight in the selection process.

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 directly imports minerals in extremely low
volumes, however such 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
conflict minerals, 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 described in the section Work
with External Stakeholders hereafter, the Company benefits
from the Responsible Mineral Initiative (“RMI”) experienceand available audits, tools and standardised ways of working.
The SCoC formally requires suppliers to establish a policy anda management system to ensure responsible material sourcing.

2) Assess the suppliers’ maturity with regards
to sustainability
Alert and grievance mechanism
Since 2019, the Company’s OpenLine has been accessible toexternal stakeholders, such as suppliers and their employees.
For further information on OpenLine, see “– 1.2.14 Businessintegrity”. Access to OpenLine has been reiterated in the
updated SCoC. Apart from OpenLine, the Company may receive
alerts from other sources including through media screening,
NGO reports, directly from employees or Supplier Compliance
Review which is a screening ahead of supplier selection. During2023, 133 alerts from such sources have been received on
potential allegations relating to environmental, human rights
and health & safety concerns in its supply chain. Since 2022
the number of alerts has increased due to the systematic
inclusion of sustainability criteria into the screening. Analysis
and/or investigations of those alerts are managed jointly by
the Ethics & Compliance, the Sustainability Legal Affairs, theProcurement Sustainability and the Sustainability & Environment
teams as detailed below:–– initial review to determine if an investigation is needed;–– detailed analysis of the allegation including collection ofevidence;–– assessment of information and documentation collectedduring the investigation, summary of the findings and proposalof remedial actions necessary to reasonably respond to andprevent the recurrence of the conduct, if any;–– closing the investigation and reporting;–– monitoring of the implementation of remedial actions.

Supplier risk mapping
Since 2018, the Procurement team has carried out annual
proactive sustainability inherent risk mapping. In 2023, theCompany started to use an upgraded inherent risk mapping
methodology building on risk indexes considering the locationand the type of activity performed by its Tier-1 suppliers(excluding suppliers of its affiliates and subsidiaries). When
relevant, the supplier risk mapping is enhanced by the outcomesof the alerts and grievance mechanisms described above.
This led to a risk ranking of suppliers regarding human rights,
environment and health and safety. From this, and in line withthe programme developed in 2022 with IAEG (see below) the
identified riskiest suppliers are invited to undertake an evidencebased desktop sustainability assessment. In 2023, a number

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1. Information on the Company’s Activities
1.2 Non-Financial Informationof suppliers were prioritised, while coverage is to continuously –– if a supplier has been identified as risky in the frame of the
improve. As a result of the assessment, suppliers not meeting
inherent risk mapping methodology;
the Company’s sustainability expectations with lower scores–– if a supplier’s assessment results have raised concerns on(classified as a red flag) will be requested to develop and put
one or more sustainability aspects.
in place a corrective action plan in a determined time frame.
In addition, the Company reviews its relationship with suppliers
who refuse to participate in its assessment programmes.
Evidence-based desktop assessments
The Company conducts evidence-based sustainability maturity
desktop assessments, now renewable every year (transitioning
from every three years with the previous provider), with thesupport of an external specialist company contracted via
the IAEG in 2022. Taking part in this IAEG voluntary sectoral
framework for ESG engagement strengthens business resiliency
and optimises resources and costs for suppliers. This grouplevel assessment covers labour and human rights, health andsafety, environment, ethics and sustainable procurement.
A total of 73.6% of the 2022 sourcing volume was covered byan evidence-based desktop assessment at the end of 2023,
including both risky suppliers and other suppliers alreadyengaged into this sectoral approach.

Assessment – CO2
Since 2020, the Company has engaged in the supply chain
programme of CDP to foster transparency about climate actionsin the Company’s supply chain. See section “– 1.2.2 Climatechange / IV. Transition plan / Supply chain engagement”

On-site assessments
The result of an evidence-based desktop assessment or any
sustainability alert may lead the Company to request an on-site
assessment at a particular supplier site. In 2023, the Company
performed 33 on-site assessments, compared to seven in theprevious year. The Company engaged with suppliers on findings
in order to improve the situation, when relevant.

Responsible mineral sourcing
The responsible sourcing of tungsten, declared by the smelters,
is confirmed by third party audits performed by the RMI. This due
diligence exercise is performed at the end of each calendar year
and capitalises on data from the smelters, the customs as well as
the Procurement organisation of the Company. The Company isalso monitoring developments from the European Commission
on critical raw materials (“CRM”) and is investigating how totake a deeper look at its related supply chain, through direct
involvement and/or trade associations.

Gemba Walk
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.

3) Engage and develop Procurement employees
and suppliers further on the sustainability
journeyEngagement and mitigation measures
In the frame of its due diligence, the Company engages directlywith suppliers in a number of different circumstances:–– if sustainability alerts have been reported linked to those
suppliers;

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Substances traceability
At the end of 2021, the Company launched a project to digitise
the way suppliers provide information on substances found intheir products. The main objective is to improve traceability andtransparency on substances in products from the supply chain
in line with regulatory requirements while allowing an automatedway of sharing this information. In 2023, a Company-wide target
has been defined to deploy the digital solution to 700 additional
suppliers’ sites. This target has been reached and the digitalsolution is now deployed to more than 1,200 suppliers’ sites.
CO 2 emissions – The Company is seeking to engage its
suppliers in the transition towards a low carbon economy asdescribed in the section “– 1.2.2 Climate Change – IV. Transition
Plan – Supply Chain Engagement”. See also “– 1.2.17 ESG
Data Board”.

Supplier cooperation
Sustainability is embedded into all major suppliers’ events
such as the Annual Supplier Conference of the Company’scommercial aircraft business or the Defence and Space Division.
In 2022, the Company launched the first Airbus Supplier
Sustainability Council establishing a framework to step-up
cooperation within its supply chain on sustainability andfostering a new model of engagement with suppliers.
Concrete improvement initiatives were launched and co-led
by representatives of the Company and of members of theCouncil. The focus is on decarbonisation, transparency andsubstances. The activities run on those topics by the members
are acting as key enablers to accelerate specific initiatives fromindustry bodies such as IAEG and to share best practices acrossthe full supply base. The Company’s CPO and the CSO andCommunications acted as sponsors of the annual Airbus
Supplier Sustainability Council in 2023.
The Company values the commitment, contribution andefforts of its supply chain to improve on sustainability topics. It
continues to give awards to its suppliers contributing positively
to sustainability. In 2023, two tyre suppliers were awarded by
the Company commercial aircraft business: Bridgestone andMichelin. Both companies developed notably lighter weight
products for less CO2 emissions and the use of more recycledmaterials. Kuehne & Nagel was awarded for its sustainability
efforts and its innovation in plastic reduction, circularity andelimination of delivery notes by Airbus Defence and Space.

Work with external stakeholders
The Company is a founding member of International Aerospace
Environmental Group (“IAEG”), which is working on development
and promotion of common aerospace industry standards andtools to manage environmental obligations. The Company isrepresented at the Board of the IAEG by the Head of Procurement
Strategy and Sustainability as IAEG board member and the
Director in charge of Institutional Relations & Standardisation as
Chairman of the Board. The Company, through representatives
from different functions, actively participates in different IAEG

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

work groups. More specifically, for the supply chain, IAEG
has developed the following materials for voluntary use bycompanies:–– a supply chain environmental survey, which the Company
implemented in 2019 and which will be used as environmental
assessment module, as mentioned in the section Assess
above;–– an Environment Management System (“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;–– a definition of an Environmental Qualification Programme
to help assess and develop the environmental maturity ofsuppliers.
Under the Company’s leadership, the IAEG (initially focused on
environment) extended its scope of actions to environmental,social and governance topics. In 2022, and co-led by theCompany, a contract has been established between IAEG and
its selected service provider to build a sectoral approach forsupplier assessment which was deployed in 2023.
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 SCoC which expresses
the minimum ethical standards to be applied by suppliers
throughout the aerospace and defence industries. It also
encourages suppliers to go beyond legal compliance, drawing
upon internationally recognised standards in order to advance insocial and environmental responsibility and business ethics. All
Company suppliers are now being asked to sign a confirmationof compliance with the principles of the latest version of the
SCoC, 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.
In 2019, the Company joined the Responsible Business Alliance’s
RMI, in order to further enforce activities of responsible sourcing
while applying industry standards for supplier due diligence anddata management in accordance with the OECD framework.
In 2023, the Company extended its membership to the whole
Responsible Business Alliance (“RBA”) initiative.

Communication
The Company is continuously raising awareness on its four
sustainability commitments and related initiatives, both acrossits supply chain and own workforce, in particular via awarenesssessions, presentations in regular forums or marketplaces.
Different communication means are used: a toolkit which is
updated annually, posters, kakemonos, a dedicated intranet
website, participation in internal events promoting sustainability
initiatives.

Training and awareness
The Procurement Academy defines positions, competences,skills, and associated training to ensure procurement employees
in all Divisions are ready to face current and future challenges.
Since 2022, sustainability is embedded into the Procurementcompetences and a dedicated “Procurement Sustainability
Officer” position is in place.

To support people upskilling, on top of existing Company-widetraining courses on sustainability, the Procurement Organisation
implemented:–– a human rights virtual training for Procurement which
was initially tested in 2022. 150 buyers and supply chain
quality managers in charge of identified risky suppliers wereregistered in 2023;–– a substance management awareness for Procurement
in order to improve the understanding of the substanceregulatory framework and of the internal projects aiming at
increasing the quality of the data provided by the suppliers.
On top of the compulsory commitment to the SCoC (notably
for health & safety and ethics & compliance), the Company
provides health & safety training to its in-situ subcontractors.
This training is mandatory in order to have access granted to
the Company’s facilities.

V. Other Initiatives
Promoting disability-friendly companies
Since 2011, the Company has been promoting employment
of disabled people by its suppliers starting with a particularfocus on France. Disability-friendly companies often take partin the call for tender process either through direct offer orpartnership. The procurement volume with disability-friendly
companies has been multiplied by five over the decade goingalong with the development of the disability-friendly companies’
ecosystem. In 2023, the sourcing volume with disability-friendly
companies is around € 68 million of annual turnover which
represents a 25% increase compared to 2022. Around 70
disability-friendly companies are working with the Company
to date. The Company will continue to develop business withdisability-friendly companies either through direct contractingor partnerships or subcontracting, primarily in France andthen also in Spain and Germany. In addition, the Company
is actively developing inclusion awareness. For instance,
in November 2023, the Company organised a (Dis)Ability
forum in Toulouse with 41 disability friendly companies andfive strategic suppliers for the Company. Around 350 people
attended this event. In the frame of the Handicap Mission,
the Company has signed in April 2023 a partnership with the
GESAT, the economical network of the French Disability Friendly
Companies, in order to develop further the subcontracted
activities with those companies.

Plastic-free supply chain
As part of the Company’s roadmap on circularity, a plastic-free
supply chain project was launched in 2019 and extended to
production in 2021 within the Company’s Defence and Space
Division. The aim of this project is to reduce, reuse and recycle
single-use plastic waste and packaging in the Division’s scopeof involvement by 2025. The Division managed to reduce theuse of single-used plastic by 73% in logistics (2023 versus 2020
baseline) and by 16% in production (2023 versus 2021 baseline)
at all sites in 2023. This achievement has been possible throughdifferent actions such as the implementation of plastic-freealternatives (eg. tape) or improved processes, including theuse of recycled material, for packaging.

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

VI. Outlook
The SSCR is constantly evolving to actively support theCompany’s sustainability ambition, to adapt to progressing
sustainability requirements and to endeavour to minimise
sustainability impacts in the supply chain. It is building uponits current initiatives to deploy them to an even larger numberof suppliers. In 2024, notably this will include:–– continuing to require the adherence of the Company’s SCoC
principles throughout the Company’s supply base;–– reinforcing the risk identification and risk assessment of theCompany’s supply chain due diligence plan;–– extending the coverage of supplier sustainability assessmentsby requesting more suppliers to perform such an assessmentwith the objective to reach 75% of the spend volume in 2025;–– engaging with suppliers after the assessment outcomes,
when required,–– improving the Scope 3 Category 1 Procured Goods andServices (PGS) calculation.
–– deploying learning sessions to develop Procurement
community competences on sustainability matters, with anawareness session planned to be developed in 2024 andthe specific training on human rights to be further deployed.
–– pursuing the Company’s ambition to work at sector level topromote harmonised sustainability practices throughout theaerospace supply chain.

1.2.16 Community Impact
I.

Introduction

The Company takes global collective action across the world where the Company operates to support communities with a focus
on three community impact priority themes: the most vulnerable, the environment, and young people. Products, services andemployees are mobilised with a focus on equitable and measurable solutions, in line with the Company purpose.
Community Impact

Highest governance body(ies)involved
Related Corporate Reference
Documents

GRI

SDGs

413 Local communities

All 17 SDGs with a focus on 1,2,3,4,5,13, 14, 15 and 17

Board of Directors / ECSC
Airbus Foundation Board of Directors, Airbus Foundation Endowment Fund Board of Directors
A42 Community Impact Policy
A1133 Directive on Sponsorships, Corporate Donations & Corporate Membership
The bylaws of the Airbus Corporate Foundation and the Airbus Foundation Endowment Fund

Key metrics

2022

2023

Number of Sustainability Ambassadors

448

811

% of employees onboarded to the +impact platform

4%

12%

Additional resources

Community impact on Airbus.com , Airbus Foundation on Airbus.com, including its annual reports
Airbus Foundation partnership to support Polar POD mission in the Southern Ocean

II. Governance
The Sustainability – Develop & Engage department manages
the global strategy and framework for community impact in the
Company and supports the operations of the Airbus Foundation.
A global network of community impact focal points representing
the major countries where the Company operates drive local
partnerships and engagement, as welI as a committee of specifictopic experts who provide overarching assessment, guidance
and recommendations.
A corporate top sustainability objective related to community
impact is set annually, with awareness and adoption supported by
the Company’s transversal sustainability networks. Community
Impact is also integrated into the business through a policy
and processes at operational levels, including a formalised
assessment and decision mechanism for corporate donation
requests submitted by business lines. In addition, there arestandard reporting lines to the Sustainability & Environmentorganisation, with top level oversight provided by the ECSC at
the Company’s Board of Directors level.

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The Airbus Foundation and its Endowment Fund are non-profit
entities of general interest registered under French law, withspecific Articles of Association that define their respective
missions and remits. The strategy of the Foundation is governedby its Board of Directors and the Airbus Foundation and Airbus
Foundation Endowment Fund annual reports and accounts are
submitted annually to the French authorities, as required by law.

III. Implementation/Activities
2023 continued to be a year of transition and evolution of thecommunity impact framework. The Company strengthened theestablished routes for corporate giving and philanthropy, andexpanded opportunities for employee engagement throughthe “+impact” digital platform (launched at the end of 2022).
The Company also focused on enabling the future, piloting new
projects that contribute to social value and shape a shared value
approach. Shared value aims to bring societal needs together
with business opportunities and resources to create a win-win
situation for all parties, which is both scalable and sustainable.
See “Outlook” section below for further details.

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

Like 2022, this year had a considerable number of events with
important implications for communities around the world –geopolitical crises and conflicts, climate related disasters, andrising inflation had significant repercussions for the underserved
and undeveloped parts of society. Continuing to evolve its
collective approach, the Company developed a corporate
disaster response procedure, bringing together key actors
from across the business to assess and validate the Company’s
response strategy for those tragic events. Following the pilot
phase in 2022, the Company structured and embedded anannual community impact call for proposals. During 2023,
27 projects across 24 countries were validated, with a focus
on responding to local needs and creating sustainable positivechange. In 2023, the Airbus Foundation’s mandate was renewed
for a further five years (2023 to 2028).

Supporting vulnerable communities
During 2023, the Company continued to focus on supporting
vulnerable communities through disaster response, innovation or
fundraising to tackle topics such as poverty, hunger and accessto essential services. Partnerships established in previous years
were continued or expanded in several regions. For example, theinitial partnership with the Manila Water Foundation to install aclean water station in a school located in a remote province in thePhilippines was concluded during the year with more than 12,000
community members benefiting from increased access to cleanwater. The partnership also includes inspection of the facilities
to ensure proper functionality and maintenance, local training,and professional community health assessment to evaluate if
the community’s sanitation habits improve over time. During the2023 call for proposals, a number of additional projects related
to water access and water stress were received, highlighting the
evolving impact of climate change on vulnerable communities.
Amongst those validated was a three-year partnership withEngineers without Borders (EWB) in Australia with the aim of
ensuring remote communities can reliably access safe andclean water. EWB works alongside communities whose watersupply does not fall under public water service provision andare vulnerable to lengthened dry seasons and extreme weather
events. The project aims to install robust and self-manageable
water systems in an indigenous community, and to support its
long term impact, training for community members to establish
a governance structure and safely operate the water systems
will also be delivered.
The Company’s evolving disaster relief procedure was put to thetest during the devastating earthquakes that impacted Turkey
and Syria. All community impact channels were mobilised with
the Company using its procurement network to source andsupply humanitarian kits to local relief agencies; the Airbus
Foundation coordinated use of the Company’s products to
help its partners transport essential aid; and a disaster relief
appeal was launched with employee donations matched by
the Company. This collective approach helped streamline,
consolidate and strengthen the support the Company was able
to provide.
During the year, the Airbus Foundation continued to provide
access to the Company’s unique portfolio of products and services
to support the disaster response efforts of its humanitarian
partners, with actions in Turkey, Malawi, Chad, Central African
Republic, Somalia and Sudan, amongst others. In total, theFoundation coordinated 13 humanitarian flights transporting
almost 375 tonnes of aid to impacted communities. Additionally,
117 helicopter flight hours were chartered for assessment andtransportation of materials in response to earthquakes, flooding,
and wildfires. The Foundation also responded to 120 satellite
imagery requests (covering 34,000 km2) from partners for disaster
assessment and response plans, to monitor displacement
and flooding, plan medical activities, as well as environmental
monitoring. Support was also provided to an international
research project working to estimate supply chain delays along
the Douala corridor. Via its partner, the French Foundation of the
Academy of Medicine, the Foundation supported the delivery of
Helicopter Emergency Medical Services training to 385 medical
personnel in Indonesia, Nepal and Brazil.

Supporting the future generation
In 2023, across its community impact channels, the Company
collectively reached over 37,600 young people directly throughmentorship, workshops, and education outreach. Corporate
partnerships and STEM outreach programmes focused on using
the expertise and knowledge of the Company’s employees
to inspire interest in science, technology, engineering andmathematics (STEM). The “Future by Airbus” programme
continued in China, engaging more than 100 children through
STEM workshops delivered by Company volunteers incollaboration with the Beijing Civil Aviation Museum. Airbus
Defence and Space engineers innovated an interactive installation
for the GISTA museum in Bangkok, supporting the organisation’s
hands-on education approach; and STEM outreach programmes
across Airbus Defence and Space UK reached more than
3,000 young people. In addition, a significant focus in 2023
was given to widening access to programmes that offer skillsbased education to young people, supporting skills pathways
that may eventually lead to career opportunities for underserved
communities. In India, the Company piloted a new partnershipwith Tata Strive, equipping 75 young people with digitalisation
skills essential for their future careers, which led to 19 of thestudents gaining employment following participation in the
programme. The Company also entered into a partnership with
Flight Works Alabama in Mobile, US to provide 10 underserved
primary and secondary schools with access to the “We Build It
Better” (WBIB) programmes. WBIB lays a foundation for students
to understand the process of developing a new product andequips them with the skills to design and create an innovative
solution to a real-world industry-based challenge. Critically, thesolution supports teachers to deliver the programme year on year
through continuous professional development. Responding to
the widening STEM skills gap in areas of the UK, a pilot of the We
Build it Better programme was also launched with a secondary
school in Stevenage, providing a year-long immersion into awork-like STEM environment.
The Airbus Foundation enriched its Airbus Foundation Discovery
Space content with two new video mini series – “Satellites are
fascinating” and “Helicopters in emergency situations”. The
videos aim to encourage discussions around subjects like climatechange and the importance of being good custodians of theplanet. The Foundation also designed a personal development
booklet for teenagers, introducing topics such as self care,empathy, and civic engagement, to support young people facing
an uncertain world and increasing incidences of mental healthissues. The Foundation’s youth programmes span 34 locations
in Europe, Africa, the Middle East, Asia, and the Americas. In
2023, almost 350 Company volunteers participated, and theprogrammes directly reached 16,805 students. The fifth editionof the Moon Camp Challenge built on the success of previous
years with 2,055 projects submitted by over 5,350 students from39 countries, supported by nearly 495 teachers.

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

Protecting the future of our planet
During 2023, the community impact projects again focused
primarily on employee awareness and action to preserve andrestore local biodiversity. In Vietnam, the Company supported
a community forest project in collaboration with the French
Chamber of Commerce and Industry in Vietnam and Gaia
Nature Conservation. 500 trees were planted by Company
employees in Vietnam over 1.25 hectares of land in the Dong
Nai Biosphere Reserve. The Company also saw emerging needsaround education on sustainable development topics. Following
a school-based pilot in 2022, the Company entered into a 2-year
partnership with Ocean Generation to scale their Wavemakers
programme which aims to reach and equip 3,000 young people
aged 16-24 with accurate and science-based environmental
information, encourage a solution focused mindset, and build
confidence for them to take action on social and environmental
issues within their areas of influence.
The Airbus Foundation continued its environment partnerships,
focusing on climate change mitigation and monitoring, disasterprevention and protecting biodiversity. This included developing
its collaboration with Connected Conservation Foundation
through the “Satellites for Biodiversity” award that provided highresolution satellite data to three community-based organisations.
Focus areas included informing local conservation managementof Asian elephant habitat in Thailand’s Sai Yok National Parkand helping local communities protect vital habitats for theendangered Matschie tree kangaroo in Papua New Guinea.
In addition, the Foundation entered the second phase of its
3-year project with IUCN, providing technical data, satellite
images and project management to contribute to the validationof IUCN’s forest restoration barometer. A new model developedin 2023, has delivered improved SAR imagery-machine learning
methodology with 80-85% accuracy.

Employee engagement
The Company’s Sustainability Ambassador network grew by 81%
in 2023 with a total of 811 members representing all functions
and located across 20 countries. A key enabler for awareness,engagement and culture change, the network was instrumental
in engaging employees through the “+impact” platform throughsustainability challenges such as “Digital Clean Up” with
employees recording almost 3000 positive actions across all

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challenges. Following its launch at the end of 2022, participationin the +impact platform grew from 4% to 12% of the employee
population during the year. Generously donating towards multiple
disaster relief appeals during the year, the Company’s employees
also worked together to participate in volunteering and fundraisingactions around the world. A particular highlight was the charity
run in Toulouse in partnership with La Ligue Contre Le Cancer,
where more than 2,000 employees participated in the eventand over 40 employees volunteered in the preparations and on
the day. In place for 22 years, the Lucky Pennies payroll giving
initiative in Germany continued to grow, supporting 63 local
projects during the year; and the Company’s digital function
supported an education project in Kenya, equipping a remotecommunity school and training teachers to deliver ICT curriculumin accordance with government requirements. For a third year,
the Airbus Foundation supported the Action Against Hunger
global wellbeing event, Connected Against Hunger, enablingalmost 4,000 employees to participate and raise funds for Action
Against Hunger’s lifesaving work.

IV. Outlook
With a baseline now in place for its community impact philanthropic
activities, the Company intends to evolve its strategy further
towards a shared value approach, seeking new opportunities thatbring both business and societal value to ensure scalable andsustainable impact. Activities will focus on social procurement,
building and expanding on activity already well developed with“disabled friendly” companies (see Responsible Supply Chain
section), product and services development, and closely aligningwith early careers programmes to expand equitable access to
skills pathways.
Additional employee engagement mechanisms will also be
introduced, including a “mecenat de competence” (loan of skills
to eligible organisations, such as nonprofits) scheme for theCompany’s employees in France.
The Airbus Foundation is redefining its youth strategy to focus
on the most vulnerable populations. In 2024 a call for proposals
will be organised to seek new environmental partnerships inadditional topic areas, and the Foundation’s new partner, Ocean
Polaire will begin the operational phase of its Polar Pod project.

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

1

1.2.17 ESG Data Board
Environmental performance
GRI

KPI

Unit

2023

2022

2021

2020

2019

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

GWh

3,646

3,690

3,739

3,792

4,601

GWh/bEUR

54.8

61.9

70.7

75.4

64.0

Energy consumption from stationary sources andelectricity

GWh

2,540

2,586

2,709

2,664

2,984

of which purchased grid electricity and otherenergies (gas and other stationary fuels)

GWh

2,534

2,584

2,708

2,663

2,983

GWh

1,098

1,180

1,343

1,268

1,389

GWh

1,002

1,096

1,299

1,228

1,345

of which bio-methane

GWh

120

21

10

0

0

heat generated from biomass

GWh

36

37

25

24

27

other fuels

GWh

60

46

19

16

17

GWh

1,442

1,406

1,365

1,396

1,595

GWh

1,298

1,283

1,231

1,272

1,459

GWh

576

596

414

251

163

purchased electricity from renewablesources PPA*

GWh

20.1

0.1

0.0

0.0

0.0

self-generated electricity
from renewable sources

GWh

1.5

1.2

0.8

0.9

0.2
11.2%

Energy intensity (per Total Revenues)

Energy consumption from stationary sources
natural gas

Energy consumption from electricity,heat and steam
purchased electricity (incl. renewable
or low carbon sources from grid)
EN3
EnergyEN4of which purchased electricity with REC/
GoO*

percentage renewable electricity
heat and steam
Energy consumption from mobile sources
kerosene

46.5%

33.7%

19.8%

122

121

134

123

135

GWh

1,106

1,104

1,031

1,128

1,617
1,061

GWh

757

715

681

711

GWh

86

22

4

1

0

% of SAF used in own operations

%

11.3%

3.1%

0.5%

0.2%

0.0%

of which used in Beluga Transport

GWh

364

330

298

290

421

of which used in flight test

GWh

393

385

382

421

640

GWh

311

351

321

389

520

GWh

1,008

800

585

398

323

27.7%

21.7%

15.6%

10.5%

7.0%

766

852

883

930

1,136

645

757

805

875

1,100

Energy consumption from renewable
or low-carbon sources
Percentage energy from renewable
or low-carbon sources
Total Scope 1 + Scope 2 CO2 emissions(location based)
Total Scope 1 + Scope 2 CO2 emissions“market‑based” (location based net of REC)*
Scope 1&2

45.2%

of which Sustainable Aviation Fuelroad & maritime fuel used in Oversize Surface
TransportationAiremissions%
GWh%ktons CO2e
ktons CO2e

EN15 Scope 1 & 2 GHG intensity (per Total Revenues)

gCO2e/EUR

9.7

12.7

15.2

17.4

15.3

EN16 Total Scope 1 GHG emissions (1)ktons CO2e

486

549

565

580

739

EN18

ktons CO2e

97

99

99

109

165

Total Scope 2 GHG emissions – location based

ktons CO2e

279

303

319

350

396

Total Scope 2 GHG emissions – “market-based”(location based net of REC)

ktons CO2e

159

208

240

295

361

of which from flight test

Indirect GHG emissions – Category 11 –Use of Sold Products: *Scope 3

Commercial aircraft IEA-SDS SAF uptake*ktons CO2e464,136

425,454400,611383,266

650,366

GHG efficiency for delivered commercial aircraft(as per SBTi-validated target)*

gCO2/pax.
km

62.9

64.4

66.3

67.7

72.2

EN17

Commercial aircraft – (“no SAF” scenario)*ktons CO2e548,701

494,893458,738

432,245

723,110EN18

GHG efficiency for delivered commercial
aircraft (“no SAF” scenario)*gCO2/pax.
km

74.3

74.9

75.9

76.4

80.3

Universal Registration Document 2023

Airbus Annual Report 135

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

GRI

Unit

2023

2022

2021

2020

2019

ktons CO2e

8,646

10,993

9,586

NA

NA

Indirect GHG emissions – Category 1 –Purchased Goods and Services*ktons CO2e

N/A

10,325

8,439

9,940

NA

Indirect GHG emissions – Category 6 –Business Travel*

ktons CO2e

77

47

17

22

109
1,457

KPI
Other products*

VOC

tons

1,103

1,098

1,041

1,048

SOx

EN20 Total VOC emissions*
Total SOx emissions

tons

17

17

13

13

13

NOx

Total NOx emissions

tons

179

212

224

207

232

Other
Information

Internal Carbon Pricing

EUR/ton

150

150

150

30

30

Score

A-

A-

A-

A-

B

m3 3,535,867

3,687,717

3,347,368

3,699,762

4,563,138

CDP Rating (based on previous year disclosure)
Total water withdrawal
EN8

Water

of which percentage purchased

%

78%

79%

79%

78%

80%

of which percentage from surface water sources
and collected rainwater

%

2%

2%

2%

2%

2%

of which percentage from ground water sources

%

16%

16%

16%

17%

15%

of which percentage from all areas with highwater stress*

%

37%

37%

39%

40%

39%

3

m

3,130,257

2,953,488

2,844,056

3,189,150

3,858,056

tons

77,20874,443

71,13874,95999,128

%

27%

25%

26%

29%

27%

Material recovery rate*

%

60%

61%

54%

51%

54%

Energy recovery rate

%

19%

18%

20%

21%

21%

Landfill and incineration without energy recovery rate

%

21%

21%

25%

28%

25%

%

87%

88%

88%

88%

87%

%

90%

92%

92%

92%

92%

EN22 Total water discharge
Total waste production, excluding exceptional waste
EN23
Waste

EMS
certificationof which percentage hazardous waste*

Percentage of operations with ISO 14001 / EMAS
certification (in % workforce)
Percentage of operations covered by reporting(in % workforce): 2023 data verified by EY® & Associés. Limited assurance report issued by EY® & Associés is available on the Company’s website. Scope of reporting: Reported
data covers 81 sites. Company’s environmental reporting guidelines include sites worldwide with a workforce on-site higher or equal to 100 employees. Only
100% consolidated entities are taken into account with the exception of ATR and Tianjin operations.

* Methodology and assumptions:
Emissions restatements: 2019-2023 figures as well as 2015baseline of related targets were restated following the refinementof emission factors. 2022 market-based scope 2 restatement
also included the correction of REC accounting, mainly for foursites.
Energy – Purchased electricity from renewable sources:
Power Purchase Agreements (“PPA”) – it is a contract underwhich a legal entity agrees to purchase renewable electricity
directly from an electricity producer. For the Company this meanspurchase of electricity from predefined renewable production
facilities and/or purchase of electricity from renewable electricity
generation facilities that can be built near to a Company site andthat is connected to the site via and the direct wire.
Energy – Purchased electricity from renewable sources REC/
GoO: Renewable Electricity Certificates (“REC”) or Guaranteesof Origin (“GoO”) – is an energy certificate representing 1MWhwhich has the sole function of providing evidence to a final
customer that a given share or quantity of energy was produced
from renewable sources. For the Company, this represents
the electricity bought from the grid with energy certificatesevidencing that a given share or quantity of energy was produced
from renewable sources.
Air Emissions – Scope 1 & 2 – SAF emissions were computed
according to the formula set by the ICAO and sustainability
certificates.

136 Airbus Annual Report

Universal Registration Document 2023

Air Emissions – Scope 1 & 2 – “market-based” (location
based net of REC): location based with purchased guarantees
of origin deduced. The Company is working towards improving
data collection and market-based methodology implementation.
Meanwhile, this metric is used by the Company to measure its
progress towards its 2030 target, in order to be able to take into
account the contribution of its electricity sourcing on its industrial
decarbonisation target. However, this refining of methodology is
expected to trigger restatements in the coming years, includingof the 2015 baseline).
Air Emissions – Scope 3 – Use of sold products. The main
contribution of the Company’s value chain on climate change
comes from the use of sold products and the Company reports
in-use emissions of the products it delivers (Scope 3 – Useof sold products). This started in 2020 with the disclosure ofemissions from commercial aircraft products, and was extended
to other products from 2021, namely civil helicopters initially andmilitary aircraft and helicopters in 2022, further complemented
by satellites in 2023. The Company will continue to progressively
extend the scope of reporting to other families of products, forwhich the calculation methodologies are still under development.
Nevertheless, current results and advanced estimations haveshown that the vast majority (over 90%) of the Scope 3 – Use of
Sold Product impact of the Company’s products is due to thecommercial aircraft family of products, and that this situation isunlikely to change once all the product families will have beenassessed.

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

Additional methodology information:–– the Company’s emission calculation methodology wasdeveloped by a team consisting of key personnel fromthe engineering and environment departments to be alignedwith the guidance provided by the Greenhouse Gas Protocol.
The external auditor performed a review of the calculation
methodology applied by the Company and assessed thereasonableness of the supporting assumptions;–– the Company has used a number of assumptions based oninternal and external information including assumptions basedon publicly-available data.
–– For all products:——The estimation includes CO2 emissions only. Emissions
related to CH4 and N2O were excluded given the very low
levels produced by modern aircraft engines. Emissions
related to NOx were estimated and excluded given theuncertainty related to the NOx emission factors and therelatively low contribution of this emission stream.
——CO 2 emission factors for kerosene are the ICAO
internationally recognised lifecycle emission factor to be
used for baseline fossil jet fuels (3.846 kg CO2e per kg offuel for fossil Jet-A/Jet-A1). This factor represents a “well towake” life cycle analysis to assess the overall greenhousegas (GHG) impacts of a fuel including each stage of its
production and use.
–– For commercial aircraft: assumptions include the aircraft
load factor (82.5%), aircraft operational usage and averagein-service lifetime. Primary data collected within the
Company was also used, such as aircraft performance andconfiguration parameters. Emissions related to commercial
aircraft engine start and taxiing have been included, however,
emissions from the Auxiliary Power Units (APU) and groundhandling equipment have been excluded. For the purposeof this calculation, the Company integrated into commercial
aircraft Scope 3 the likely usage of SAF over the productlifetime, as per the IEA-SDS assumptions. Other operating
conditions of the aircraft were considered to be static over
the whole service life. In addition, the Company reports forreference an indicative figure based on a zero SAF usage.
A330-200 deliveries destined to A330-MRTT conversion
were excluded from the commercial aircraft perimeter andincluded in the military aircraft perimeter as part of the “otherproducts” category.
–– For other products:——Helicopters: assumptions include activity data from
Company’s customer services of helicopter operations
such as flight hours per year and region where the helicopter
is operated. Direct emissions and indirect emissions fromjet fuel production are included over the product’s entire
service life. Impact of SAF is not considered.
——Military aircraft: flight hours and mission profiles varysignificantly depending on conflicts and humanitariancrises. The estimation assumes the largest number of flight
hours each aircraft has been designed for in its lifetime.
Impact of SAF is not considered.
——Satellites: The estimation includes satellites delivered toexternal customers in 2023 and accounts for emissions
linked to the production of the satellites’ propellant aswell as emissions associated with the launch into space(launcher’s propellant production and combustion).
Emissions linked to the use of the satellites’ propellant are
not included as they occur outside of the atmosphere andtherefore do not contribute to global warming. Emissions
linked to the reception, processing and usage of satellite
data on the ground are not included.
Air Emissions – Scope 3 GHG efficiency for delivered
commercial aircraft (as per SBTi-validated target). Includes
the emissions related to the upstream fuel production andconsiders the likely usage of SAF over the product lifetime, as
per the IEA-SDS assumption.
Air Emissions – Scope 3 Purchased Goods and Services.
The Company bases its evaluation on the IAEG guidance thusaligning with a sectoral approach. More precisely the Company
uses the “spend based” approach allocating emissions toeach purchase expense. While this method embeds a certain
degree of uncertainty, considered high by the IAEG on acertain 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. Adjustments can be expected infuture disclosures as the Company intends to further refine its
computation, especially integrating mass-based information
as data becomes available.
Air Emissions – Scope 3 Indirect GHG emissions BusinessTravel: Worldwide air travels of Europe-based employees.
Air Emissions – VOC: 2023 VOC emissions data is estimated.
2023 actuals will be consolidated in April 2024.
Water – Areas with high water stress: areas identified withhigh or extremely high water stress as defined by the Aqueduct
Water Risk Atlas, “baseline” (Aqueduct version 3.0 for the 2022
and previous data and Aqueduct version 4.0 – updated inAugust 2023 – for the 2023 data).
Waste – 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”.
Waste – Material recovery: any operation wherein products,
components of products, or materials that have become waste
are prepared to fulfil a purpose in place of new products,
components, or materials that would otherwise have been used
for that purpose. 2023 material and energy recovery rates will
be refined when final waste treatment information of year-end
waste – representing about 15% of total – will be provided bywaste collector companies. Meanwhile, unavailable information
was estimated using 2023 actual breakdown ratios of the 85%
available data.
Waste – Exceptional waste: Waste coming from construction/
deconstruction of buildings and installations dismembering, from
accident/incident caused by external and out of Company’scontrol origin (e.g. fire, chemical spill/pollution, etc.), or fromclimate events on a non-regular basis.

Universal Registration Document 2023

Airbus Annual Report 137

1

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

Social performance
WORKFORCE
2023

2022

2021

2020

2019

147,893

134,267

126,495

131,349

134,931

Commercial aircraft activities

90,032

79,13473,56078,48780,985

Airbus Helicopters

22,33620,803

20,12620,02620,024

Airbus Defence and Space

35,52534,33032,80932,83633,922

3.90

3.99

4.34

4.36

4.43

142,961

131,307

122,950

128,151

130,591

4,932

2,960

3,156

3,198

4,340

France52,621

48,23845,931

48,23149,143Germany

50,41844,89842,97245,56845,638Spain

13,741

12,89911,881

11,828

12,637

UK

10,298

9,858

9,368

9,846

11,109

US

4,546

3,751

3,150

2,980

3,151

Canada

4,818

4,287

3,788

3,634

3,668

China

799

762

698

613

653

10,652

9,574

8,707

8,649

8,932

88.6%

88.6%

89.1%

French

34.6%

35.0%

35.4%

German

31.1%

30.7%

31.5%

Spanish

10.5%

10.7%

10.3%

British

6.9%

7.4%

7.7%

From other countries

17.0%

16.2%

15.1%

Total number of nationalities

154

147

138

16,905

13,171

11,12012,135

13,86230-50 years old

91,407

83,964

79,98581,70982,552>50 years old

39,58137,13235,39037,50538,517

17,533

13,946

5,655

5,463

11,270Core Divisions

8,738

8,231

2,817

2,413

6,643

Subsidiaries

8,795

5,715

2,838

3,050

4,627

5,440

6,428

9,394

7,796

5,842

Core Divisions

2,627

3,365

5,632

4,675

2,902

Subsidiaries

2,813

3,063

3,762

3,121

2,940

Core Divisions

2.8%

3.8%

5.9%

4.6%

2.9%

Subsidiaries

5.7%

7.8%

12.2%

9.4%

8.4%

3.8%

5.0%

7.4%

5.8%

4.3%

Total number of employees
By business segment% Part time employees
By contract type
Unlimited
Limited contract > 3 months
By geographic area

Other countries% of active workforce employees located in Europe
By nationality

By age<30 years old

Newcomers

Leavers (incl. partial retirement)

Attrition Rate

Total

: 2023 data verified by EY® & Associés. Limited assurance report issued by EY® & Associés is available on the Company’s website.

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

1

GENDER DIVERSITY
2023

2022

2021

2020

20%

20%

19%

18%

33%

33%

25%

25%

on Executive Committee

25%

25%

25%

16%

in Senior mgmt – Executives

20%

16%

14%

13%

% Women in total active workforce% women per category
on Board of Directors

in “Level IV” managers

18%

17%

16%

14%

Newcomers

25%

27%

22%

26%

France

22.2%

21.4%

21.2%

20.5%

Germany

16.4%

16.2%

16.4%

15.3%

Spain

24.6%

24.0%

22.7%

22.3%

UK

14.6%

14.0%

12.9%

13.5%

US

23.5%

22.5%

22.4%

22.4%

Other countries

23.6%

22.4%

21.0%

20.9%

By geographic area

: 2023 data verified by EY® & Associés. Limited assurance report issued by EY® & Associés is available on the Company’s website.

PEOPLE DEVELOPMENT
2023

2022

2021

2020

163,194

116,363

78,98478,443

2,052,149

1,645,816

967,495

752,702

2.2mn

1.7mn

1.2mn

1 million

17

15

11

10.6

15

14

9

8

for men

17

16

11

10

for production employees

22

19

15

14

Number of classroom training
Number of digital training
Total training hours
Average training hours per employee
for women

for non-production employees
Internal mobilities

15

14

10

8

>10,700

11460>10,400>7,000: 2023 data verified by EY® & Associés. Limited assurance report issued by EY® & Associés is available on the Company’s website.

LABOUR RELATIONS

Number of meetings with SE-WC

2023

2022

2021

2020

5

7

12

8

~ 80%

~ 80%

~ 80%

% of workforce covered by collective
bargaining agreements

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.
: 2023 data verified by EY® & Associés. Limited assurance report issued by EY® & Associés is available on the Company’s website.

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Airbus Annual Report 139

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

HEALTH & SAFETY

Lost Time Injury Frequency Rate

2023

2022

2021

2.21

2.23

3.29

2020

2019

Lost Time Injury Frequency Rate – commercial aircraft business

2.31

2.25

4.31

5

-

Number of Near-miss reports – commercial aircraft business

37,83628,925

19,305--

Loss Time Injury Severity rate – FISH perimeter
Number of health and safety specific training hours delivered

0.122

0.117

-

-

-

304,420

286,815

128,795

103,070

148,000

Number of industrial safety training hours delivered

55,266

17,301

Number of employees who received Health & Safety training

112,652

90,49028,14437,59920,900

Number of employees having attended “EH&S Certificate modules 1 & 2”

1,763

2,214

1,309

418

-

Number of employees having attended “EH&S Certificate modules 3 & 4”

97~one third ~one third ~one third

-

-

0

-

-

2021

2020

2019

Helpline + Occupational Health consultations for mental health issues,irrespective of cause
Estimate of core entities certified to ISO45001 or similar standard
Estimate of workforce covered by ISO45001 or similar certified system

12,007~25%

25%: 2023 data verified by EY® & Associés. Limited assurance report issued by EY® & Associés is available on the Company’s website.

CYBERSECURITY
2023

2022

Number of data breaches reported to data authorities

1

0

1

1

-

Percentage involving confidential information

1

-

100%

1

-

107,808

67,475

10,328-Cyber security awareness training e-learning participation

PRODUCT SAFETY
2023

2022

2021

2020

2019

Fatal accident rate industry-wide Gen4

0.04

0.05

0.03

0.04

0.05

% SMS officers nominated

100%

100%

100%

1

-

% SMS officers trained

100%

100%

100%

1

-

2019

: 2023 data verified by EY® & Associés. Limited assurance report issued by EY® & Associés is available on the Company’s website.

COMMUNITY IMPACT
2023

2022

2021

2020

Number of Sustainability Ambassadors

811

448

207

-

% of employees onboarded to the +impact platform

12%

4%

140 Airbus Annual Report

Universal Registration Document 2023

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

1

HUMAN RIGHTS
2023

2022

2021

2020

2019

100%

100%

100%

1

-

51

29

10

6

-

100%

100%

1

-

96,714

6,955

5,789

4,943

-

59

28

4

5

-

2023

2022

2021

2020

2019

Number of employees per appointed Ethics & Compliance Representatives

338

360

372

390

-

Number of employees per appointed Export Control Point of Contact

242

236

-

-

-

% of investigations completed or in progress – following reportsof concerns linked to human rights, including forced and child labourand other labour rights.
% of sites having undertaken a social assessment – % of the Company’ssites with over 100 employees, cumulative since 2020, undergoing a social
assessment including human and labour rights (based on number ofin scope sites at 2020).
% of findings closed within 18-months (following social assessments
including human and labour rights, carried out on the Company’s sites)
Number of participants to human rights trainings (Cumulative since 2020
number of participants who have completed e-learning modules onhuman rights and modern slavery; reporting period: 1 Oct-30 Sep)
Number of alerts of human rights concern from within the Company’s
supply chain (covering forced and child labour and other labour rights
identified through the Supplier Compliance Review, media screening,
NGO reports or employees).

100%

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

96%

96%

90%

1

-

Number of E&C e-learning sessions taken by employees

525,280

290,178

284,774

309,682-

Of which Export Control e-learning sessions delivered to employees

367,187

149,426--

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

9,255

3,181

9,327

35,073-

Investigative requests received during the year

1,200

847

-

-

-

of which Compliance-related investigative requests

764

323

-

-

-

of which HR-related investigative requests

436

524

-

-

-

: 2023 data verified by EY® & Associés. Limited assurance report issued by EY® & Associés is available on the Company’s website.

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Airbus Annual Report 141

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

SUPPLY CHAIN
2023

2022

2021

2020

2019

Sourcing volume (in € million)~49,000

48,18537,906

40,71253,400

Number of suppliers~19,000

18,00018,00021,00023,000Commercial aircraft activities

82%

77%

77%

76%

84%

Airbus Helicopters

6%

9%

8%

8%

6%

Airbus Defence and Space

12%

14%

15%

15%

10%

EU

67%

69%

74%

74%

59%

North America

26%

24%

19%

19%

27%

Asia pacific

6%

6%

6%

6%

8%

Split by Division (in %)Split by region

Other regions

<1%

<1%

<1%

<1%

6%

Number of countries

>90

90

90

88

>100

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

90%

86%

1

NA

-

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

80%

78%

68%

56%

-

Percentage of responding suppliers to the CDP scoring A or B

N/A

66%

53%

56%

-

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

37.6%

100%

95%

63%

-

Percentage of assessed suppliers not meeting Company’s sustainability
expectations

11%

16%

13%

12%

-

Percentage of action plans defined for suppliers not meeting Company’ssustainability expectations

50%

31%

15%

NA

-

Number of sustainability alerts

133

43

12

5

-

Number of suppliers registered into Digitalisation of Supplier Substancedata collection tool

936

298

-

-

-

Note: Metrics cover civil year periods, except for training related metrics with reporting periods going from 1 October to 30 September.
: 2023 data verified by EY® & Associés. Limited assurance report issued by EY® & Associés is available on the Company’s website.

Governance
BOARD OF DIRECTORS

Number of Independent Directors

2023

2022

2021

2020

2019

11

11

11

11

11

Number of Executive Directors

1

1

1

1

1

Number of women

4

4

3

3

3

Number of men

8

8

9

9

9

Average age

61

60

60

59

59

Number of nationalities

7

7

7

7

7

Average tenure

6

4.9

4.5

3.5

4

Number of Board meetings% average attendance

9

13

7

13

11

95%

96%

98%

97%

91.00%

Number of Audit Committee

6

5

5

5

7

Number of RNGC

4

5

5

4

7

Number of ECC/ECSC

4

4

6

4

6

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

1

EXECUTIVE COMMITTEE
2023

2022

2021

2020

2019

Number of women

3

3

3

2

2

Number of men

9

9

-

-

-

Number of Executive Committees

4

4

4

4

4

SHAREHOLDING
2023

2022

2021

2020

2019

Free Float

73.82%

74.06%

74.06%

73.97%

73.94%GZBV (German State)

10.84%

10.87%

10.90%

10.93%

10.94%SEPI (Spanish State)

4.09%

4.10%

4.11%

4.12%

4.13%

SOGEPA (French State)10.86%

10.89%

10.92%

10.95%

10.96%

Airbus SE

0.38%

2023

2022

2021

2020

LTIFR1

LTIFR1

LTIFR1

LTIFR1SUSTAINABILITY-LINKED REMUNERATION

CEO and Executives variable remuneration – common collective
component, paid following the end of financial year
R&S KPI 1
Weight

10%

10%

10%

20%

R&S KPI 2

CO2

CO2

CO2

-

Weight

10%

10%

10%

-

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Airbus Annual Report 143

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

1.2.18 TCFD Correspondence Table
See Company’s
URD sections

See CDP Climate Change
Questionnaire* items

1.2.1 the Company’s
approach to sustainability
1.2.2 Climate change

C1.1a, C1.1b, C1.1d

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

C1.2

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 andopportunities 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 – Environment,
Human Rights, Health &Safety Risks
1.2.2 Climate Change
see the “Notes to the IFRS
Consolidated Financial
Statements” (Note 3:
Climate impacts)

C2.3, C2.3a, C2.4, C2.4a

C2.3a, C2.4a, C3.1, C3.3, C3.4, C3.5

C3.2, C3.2a, C3.2b

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 climate-related risks are integrated into
the organisation’s overall risk management.

4.1.3 Enterprise Risk
Management System
1.2.1 the Company’s
approach to sustainability
1.2.2 Climate change

C2.1, C2.1a, C2.1b, C2.2, C2.2a
C2.1, C2.2, C4.3, C4.3a, C4.3b, C4.3c,
C4.5, C4.5a

C2.1, C2.1b, C2.2

Metrics and targets
C1.3, C1.3a, C4.2, C8.1, C8.2, C8.2a,
C8.2b, C8.2c, C8.2d, C8.2e, C8.2g,
C8.5, C9.1, C9.3, C9.6a, C11.1a, C11.1b,
C11.1d, C11.2a, C11.3a,

Disclosure of the metrics used by the organisation toassess climate-related risks and opportunities in linewith its strategy and risk management process.
Disclose Scope 1, Scope 2, and if appropriate,
Scope 3 greenhouse gas (GHG) emissions, and therelated risks.

1.2.2 Climate change
1.2.17 ESG data board,
section Environmental
performance / Emissions

Describe the targets used by the organisation to
manage climate-related risks and opportunities andperformance against targets.
* CDP Climate Change Questionnaire is available on Airbus website

144 Airbus Annual Report

and CDP website .

Universal Registration Document 2023

C5, C5.1, C5.1a, C5.1b, C5.1c, C5.2,
C5.3, C6.1, C6.2, C6.3, C6.4, C6.5,
C6.5a, C6.7, C6.7a, C6.10, C7.1, C7.1a,
C7.2, C7.3, C7.3a, C7.4, C7.5, C7.6,
C7.6a, C7.7, C7.8a, C7.8b

C4.1, C4.1a, C4.1b, C4.2a

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

1

1.2.19 EU Taxonomy
Foreword
In November 2023, the European Commission officially publisheda delegated act for the EU Taxonomy Regulation including a set ofcriteria for aviation. Aviation is recognised as a transitional activity,
supported by the decarbonisation potential brought by the latest
generation of commercial aircraft through the replacement of thecurrent fleet and the importance of an ambitious SAF ramp up,
as well as by “zero direct tailpipe CO2 emissions” technologies,
which are the cornerstones of the Company’s transition plan.
Given the Company’s product portfolio, the vast majority (seedetails in “Regulatory disclosure” section below) of amounts
reported under EU Taxonomy are expected to be related to
the “Manufacturing of aircraft”, amongst the eligible amounts
corresponding to the latest generation of commercial aircraft
contributing substantially to climate change mitigation.
Accordingly, for 2023 and including all reported activities, theCompany reports eligible revenues of € 59 billion (91%), CapExof € 2.3 billion (77%), and OpEx of € 3 billion (93%).
Based on the regulatory timeline, alignment of “Manufacturingof aircraft” is to be reported from 1 January 2025. As a result,
the tables below for 2023 do not include any alignment amountrelated to this activity. According to the published technicalscreening criteria related to “Manufacturing of aircraft” forsubstantial contribution to climate change mitigation, theCompany estimates that, amongst the eligible amounts
corresponding to the latest generation of commercial aircraft(i.e. about 70% of eligible revenue), above 50% could meet therelated technical screening criteria for substantial contribution
to the climate change mitigation objective. This latter figure
corresponds to the fleet replacement ratio as estimated by theCompany integrating methodological elements defined by theregulation (see “Future Developments” section below). Alignment
will also be subject to meeting all Do No Significant Harm(“DNSH”) and Minimum Safeguard criteria. See more detailed
information in that accompanying information below.

Regulatory disclosure
The EU Taxonomy is a classification system establishing a listof environmentally sustainable economic activities defined by
the EU Taxonomy Regulation(1). The EU Taxonomy Regulation
focuses on six environmental objectives(2) and defines overarchingconditions that an economic activity must meet to be consideredenvironmentally sustainable. The EU Taxonomy aims to direct
investments towards sustainable projects and activities in order
to meet the EU’s climate and energy targets and reach theobjectives of the European Green Deal.
As the Company is in the scope of the Non-Financial Reporting
Directive, the EU Taxonomy Regulation is also applicable to theCompany, and therefore must disclose information on the extent
to which activities carried out can be considered environmentally
sustainable economic activities within the meaning of the EU
Taxonomy.
Technical screening criteria (“TSC”) have been progressively
defined against the six environmental objectives, firstly under
the Climate Delegated Act(3) which became applicable as of
1 January 2022 and the Complementary Climate Delegated
Act(4) which became applicable as of 1 January 2023. The EU
Commission adopted in 2023 the Delegated Act for economic
activities substantially contributing to objectives other thanclimate-related ones (“Environmental Delegated Act”(5)) andthe amendments to the Climate Delegated Act(6) to add additional
economic activities and criteria, including aviation-related ones.
The lately adopted texts, applicable from January 2024, bring
disclosure obligations on these newly added activities in termsof eligibility – covering FY 2023 –, whilst alignment (assessment
against the TSC) should be covered for FY 2024. Eligibility andalignment for previously covered activities continue to apply. In
order to be aligned with the EU Taxonomy, an eligible activity
has to comply with i) the Substantial Contribution criteria; ii) the
DNSH criteria; and iii) the minimum safeguards.

EU Taxonomy assessment over FY 2023
The Company performed an analysis of its exposure to taxonomyeligible activities referenced in the applicable Delegated Acts andhas conducted an assessment of compliance with the relevant
TSC, including DNSH criteria and the minimum safeguards.
The results of this assessment have been included in thefollowing sections (EU Taxonomy KPIs and EU Taxonomy KPIs
accompanying information). The Company has performed thesecalculations based on consolidated information while it is stillworking on further improving financial data tagging to enableimproved reporting in upcoming disclosures. The Company’s
approach will be refined as additional official guidance on EU
Taxonomy implementation and interpretation becomes available.

(1) Regulation (EU) 2020/852 of the European Parliament and of the council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment
and amending Regulation (EU) 2019/2088.
(2) Climate change mitigation, climate change adaptation, the sustainable use and protection of water and marine resources, the transition to a circular economy,
pollution prevention and control and the protection and restoration of biodiversity and ecosystems.
(3) 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 climate change
mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives.
(4) Commission Delegated Regulation (EU) 2022/1214 of 9 March 2022 amending Delegated Regulation (EU) 2021/2139 as regards economic activities in certain energy
sectors and Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities.
(5) Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 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 the sustainable
use and protection of water and marine resources, to the transition to a circular economy, to pollution prevention and control, or to the protection and restorationof biodiversity and ecosystems and for determining whether that economic activity causes no significant harm to any of the other environmental objectives andamending Commission Delegated Regulation (EU) 2021/2178 as regards specific public disclosures for those economic activities(6) Commission Delegated Regulation (EU) 2023/2485 of 27 June 2023 amending Delegated Regulation (EU) 2021/2139 establishing additional technical screening
criteria for determining the conditions under which certain economic activities qualify as contributing substantially to climate change mitigation or climate change
adaptation and for determining whether those activities cause no significant harm to any of the other environmental objectives

Universal Registration Document 2023

Airbus Annual Report 145

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

EU TAXONOMY KPIs PROPORTION OF TURNOVER FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNEDECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2023
Financial yearN
(1)
Economic
activities

Substantial contribution
criteria

Year
(2)

(3)

Code(1)(5)(6) (7) (8) (9) (9) (11) (12) (13) (14) (15) (16) (17)(18)

(19) (20)

Proportion of
Proportion
Taxonomy aligned
Turnover of Turnover SC5 SC6 SC7 SC8 SC9 SC10 DN11 DN12 DN13 DN14 DN15 DN16 MS17 (A.1) or -eligible Cat19 Cat20
year N(A.2) turnover,year N-1

Currency
In m€

Text

(4)

DNSH criteria (“Does Not
Significantly Harm”)(h)%Y/N Y/N Y/N Y/N Y/N Y/N
N/EL N/EL N/EL N/EL N/EL N/EL(b)(c)(b)(c)(b)(c)(b)(c)(b)(c)(b)(c)

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Turnover ofenvironmentally
sustainable
activities(Taxonomyaligned) (A.1)

0

%

%

%

%

%

%

%

Y

Y

Y

Y

Y

Y

Y

0%

Of which enabling

0

%

%

%

%

%

%

%

Y

Y

Y

Y

Y

Y

Y

0%

Of whichtransitional

0

%

%

Y

Y

Y

Y

Y

Y

Y

0%

A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

E
T

(g)

EL; EL; EL; EL; EL; EL;
N/EL N/EL N/EL N/EL N/EL N/EL(f)

Manufacturingof aircraft(c)CCM 59,482
3.21

91%

Turnover of
Taxonomyeligible but notenvironmentally
sustainable
activities (notTaxonomyaligned) (A.2)

59,48291%

A. Turnover of
Taxonomyeligible activities(A.1 + A.2)

(f)

(f)

(f)

(f)

(f)

0%

EL N/EL N/EL N/EL N/EL N/EL

0%0%59,482

91%

B. TAXONOMY-NON-ELIGIBLE
ACTIVITIES
Turnover of
Taxonomynon‑eligible
activities

5,964

9%

Total

65,446100%

SC5 – C limate change
mitigation
SC6 – C limate change
adaptation
SC7 – Water
SC8 – Pollution
SC9 – Circular economy
SC10 – Biodiversity

DN11 – Climate change
mitigation
DN12 – C limate change
adaptation
DN13 – Water
DN14 – Pollution
DN15 – Circular economy
DN16 – Biodiversity

MS17 – Minimum safeguards
Cat19 – Category enabling
activity
Cat20 – Category transitional
activity(a) The Code constitutes the abbreviation of the relevant objective to which the economic activity is eligible to make a substantial contribution, as well as the section
number of the activity in the relevant Annex covering the objective, i.e.: Climate Change Mitigation: CCM; Climate Change Adaptation: CCA; Water and Marine
Resources: WTR; Circular Economy: CE; Pollution Prevention and Control: PPC; Biodiversity and ecosystems: BIO.
(b) Y– Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N– No, Taxonomy-eligible but not Taxonomy-aligned activity withthe relevant environmental objective; N/EL– Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
(c) Where an economic activity contributes substantially to multiple environmental objectives, the most relevant environmental objective for the purpose of computing
the KPIs of financial undertakings while avoiding double counting is indicated in bold. The extent of eligibility and alignment per environmental objective, that includes
alignment with each of environmental objectives for activities contributing substantially to several objectives, is reported in the left table.
(d) The same activity may align with only one or more environmental objectives for which it is eligible.
(e) The same activity may be eligible and not aligned with the relevant environmental objectives.
(f) EL– Taxonomy-eligible activity for the relevant objective N/EL– Taxonomy-non-eligible activity for the relevant objective.
(g) Activities are reported in Section A.2 of this template only if they are not aligning to any environmental objective for which they are eligible. Activities that align to atleast one environmental objective are reported in Section A.1 of this template.
(h) For an activity to be reported in Section A.1 all DNSH criteria and minimum safeguards shall be met. For activities listed under A2, columns (5) to (17) are filled inon a voluntary basis. The substantial contribution and DNSH criteria that they meet or do not meet may be indicated in Section A.2 by using: (a) for substantial
contribution– Y/N and N/EL codes instead of EL and N/EL; and (b) for DNSH– Y/N codes.

146 Airbus Annual Report

Universal Registration Document 2023

1. Information on the Company’s Activities
1.2 Non-Financial Information1

Proportion of turnover / total turnover
Taxonomy-aligned per objective

Taxonomy-eligibled per objective

0%
0%
0%
0%
0%
0%

91%
0%
0%
0%
0%
0%

CCM
CCA
WTR
CE
PPC
BIO

EU TAXONOMY KPIs PROPORTION OF CAPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNEDECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2023

Financial year N(1)
Economic
activities

Substantial contribution
criteria

Year(2)
Code(a)

Text

(3)
CapEx

Currency(4)

DNSH criteria (“Does Not
Significantly Harm”)(h)(5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17)(18)

(19) (20)

Proportion of
Proportion
Taxonomy alignedof
SC5 SC6 SC7 SC8 SC9 SC10 DN11 DN12 DN13 DN14 DN15 DN16 MS17 (A.1) or -eligible Cat19 Cat20
CapEx(A.2) CapEx
year N
year N-1%

Y/N Y/N Y/N Y/N Y/N Y/N
N/EL N/EL N/EL N/EL N/EL N/EL(b)(c)(b)(c)(b)(c)(b)(c)(b)(c)(b)(c)Y/N Y/N Y/N Y/N Y/N Y/N

Y/N

%

E

T

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
CapEx ofenvironmentally
sustainable
activities(Taxonomy-aligned)
(A.1)

0

0%

%

%

%

%

%

%

Y

Y

Y

Y

Y

Y

Y

%

Of which enabling

0

0%

%

%

%

%

%

%

Y

Y

Y

Y

Y

Y

Y

%

Of which transitional

0

%

%

Y

Y

Y

Y

Y

Y

Y

%

A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned)

E
T

(g)

EL; EL; EL; EL; EL; EL;
N/EL N/EL N/EL N/EL N/EL N/EL
(f)

(f)

(f)

(f)

(f)

(f)

Manufacturing ofaircraft

CCM
3.21

2,275

75%

EL N/EL N/EL N/EL N/EL N/EL

0%

Production of heatand cool frombioenergy(c)(d)

CCM
4.24/
CCA4.2480%ELEL N/EL N/EL N/EL N/EL

0%

Installation,
maintenance andCCM 7.3/
repair of energy
CCA7.3efficiency equipment

17

1%

EL

EL N/EL N/EL N/EL N/EL

1%

Installation,
maintenance andCCM 7.6/
repair of renewable
CCA7.6energy technologies

4

0%

EL

EL N/EL N/EL N/EL N/EL

0%

Data processing,hosting and related
activities

0

0%

EL

EL N/EL N/EL N/EL N/EL

1%

CapEx of Taxonomyeligible but notenvironmentally
sustainable activities(not Taxonomyaligned) (A.2)

2,304

76%

%

%

%

%

%

%

2%

A. CapEx of
Taxonomy-eligible
activities (A.1 + A.2)

2,304

76%

%

%

%

%

%

%

2%

CCM 8.1

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Airbus Annual Report 147

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

Financial year N(1)
Economic
activities

Text

Substantial contribution
criteria

Year
(2)

(3)

Code(a)CapEx

Currency(4)

DNSH criteria (“Does Not
Significantly Harm”)(h)(5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17)(18)

(19) (20)

Proportion of
Proportion
Taxonomy alignedof
SC5 SC6 SC7 SC8 SC9 SC10 DN11 DN12 DN13 DN14 DN15 DN16 MS17 (A.1) or -eligible Cat19 Cat20
CapEx(A.2) CapEx
year N
year N-1%

B. TAXONOMY-NON-ELIGIBLE
ACTIVITIESCapEx of Taxonomynon-eligible
activities

748

24%

Total

3,052

100%

Y/N Y/N Y/N Y/N Y/N Y/N
N/EL N/EL N/EL N/EL N/EL N/EL(b)(c)(b)(c)(b)(c)(b)(c)(b)(c)(b)(c)

SC5 – C limate change
mitigation
SC6 – C limate change
adaptation
SC7 – Water
SC8 – Pollution
SC9 – Circular economy
SC10 – Biodiversity

Y/N Y/N Y/N Y/N Y/N Y/NY/N

DN11 – Climate change
mitigation
DN12 – C limate change
adaptation
DN13 – Water
DN14 – Pollution
DN15 – Circular economy
DN16 – Biodiversity

MS17 – Minimum safeguards
Cat19 – Category (enabling
activity or)
Cat20 – Category (transitional
activity)%ET(a) The Code constitutes the abbreviation of the relevant objective to which the economic activity is eligible to make a substantial contribution, as well as the section
number of the activity in the relevant Annex covering the objective, i.e.: Climate Change Mitigation: CCM; Climate Change Adaptation: CCA; Water and Marine
Resources: WTR; Circular Economy: CE; Pollution Prevention and Control: PPC; Biodiversity and ecosystems: BIO.
(b) Y– Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N– No, Taxonomy-eligible but not Taxonomy-aligned activity withthe relevant environmental objective; N/EL– not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
(c) Where an economic activity contributes substantially to multiple environmental objectives, the most relevant environmental objective for the purpose of computing
the KPIs of financial undertakings while avoiding double counting is indicated in bold. The extent of eligibility and alignment per environmental objective, that includes
alignment with each of environmental objectives for activities contributing substantially to several objectives, is reported in the left table.
(d) The same activity may align with only one or more environmental objectives for which it is eligible.
(e) The same activity may be eligible and not aligned with the relevant environmental objectives.
(f) EL– Taxonomy-eligible activity for the relevant objective N/EL– Taxonomy-non-eligible activity for the relevant objective.
(g) Activities are reported in Section A.2 of this template only if they are not aligning to any environmental objective for which they are eligible. Activities that align to atleast one environmental objective are reported in Section A.1 of this template.
(h) For an activity to be reported in Section A.1 all DNSH criteria and minimum safeguards shall be met. For activities listed under A2, columns (5) to (17) are filled inon a voluntary basis. The substantial contribution and DNSH criteria that they meet or do not meet may be indicated in Section A.2 by using: (a) for substantial
contribution– Y/N and N/EL codes instead of EL and N/EL; and (b) for DNSH– Y/N codes.

Proportion of CapEx / total CapEx
CCM
CCA
WTR
CE
PPC
BIO

148 Airbus Annual Report

Universal Registration Document 2023

Taxonomy-aligned per objective

Taxonomy-eligibled per objective

0%
0%
0%
0%
0%
0%

76%
1%
0%
0%
0%
0%

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

1

EU TAXONOMY KPIS PROPORTION OF OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNEDECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2023
Financial yearN
(1)
Economic
activities

Substantial contribution
criteria

Year(2)
Code(a)

Text

(3)
OpEx

Currency(4)(5)

DNSH criteria (“Does Not
Significantly Harm”)(f)(6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17)(18)

(19) (20)

Proportion of
Proportion
Taxonomy-alignedof
SC5 SC6 SC7 SC8 SC9 SC10 DN11 DN12 DN13 DN14 DN15 DN16 MS17
(A.1) or-eligible Cat19 Cat20
OpEx(A.2) OpEx;
year N
year N-1%

Y/N Y/N Y/N Y/N Y/N Y/N
N/EL N/EL N/EL N/EL N/EL N/EL(b)(c)(b)(c)(b)(c)(b)(c)(b)(c)(b)(c)

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

E

T

A. TAXONOMYELIGIBLE
ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
OpEx ofenvironmentally
sustainable
activities(Taxonomyaligned) (A.1)

0

%

%

%

%

%

%

%

Y

Y

Y

Y

Y

Y

Y

%

Of which enabling

0

%

%

%

%

%

%

%

Y

Y

Y

Y

Y

Y

Y

%

Of whichtransitional

0

%

%

Y

Y

Y

Y

Y

Y

Y

%

E
T

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; EL; EL; EL; EL; EL;
N/EL N/EL N/EL N/EL N/EL N/EL(e)

Manufacturing ofaircraft(d)

CCM
3.21

3,022

OpEx of
Taxonomyeligible but notenvironmentally
sustainable
activities (notTaxonomy-aligned
activities) (A.2)

93%%

A. Opex of
Taxonomy eligible
activities (A.1 +
A.2)

(e)

(e)

(e)

(e)

%

%

%

%

%

%

0%

%

%

%

%

%

0%

%
SC5 – C limate change
mitigation
SC6 – C limate change
adaptation
SC7 – Water
SC8 – Pollution
SC9 – Circular economy
SC10 – Biodiversity

OpEx of
Taxonomynon-eligible
activities (B)

235

7%

Total

3,257

100%

0%

EL N/EL N/EL N/EL N/EL N/EL%

B. TAXONOMY-NON-ELIGIBLE
ACTIVITIES(e)

DN11 – Climate change
mitigation
DN12 – C limate change
adaptation
DN13 – Water
DN14 – Pollution
DN15 – Circular economy
DN16 – Biodiversity

MS17 – Minimum safeguards
Cat19 – Category enabling
activity
Cat20 – Category transitional
activity(a) The Code constitutes the abbreviation of the relevant objective to which the economic activity is eligible to make a substantial contribution, as well as the section
number of the activity in the relevant Annex covering the objective, i.e.: Climate Change Mitigation: CCM; Climate Change Adaptation: CCA; Water and Marine
Resources: WTR; Circular Economy: CE; Pollution Prevention and Control: PPC; Biodiversity and ecosystems: BIO.
(b) Y– Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective; N– No, Taxonomy-eligible but not Taxonomy-aligned activity withthe relevant environmental objective; N/EL– not eligible, Taxonomy-non-eligible activity for the relevant environmental objective.
(c) Where an economic activity contributes substantially to multiple environmental objectives, the most relevant environmental objective for the purpose of computing
the KPIs of financial undertakings while avoiding double counting is indicated in bold. The extent of eligibility and alignment per environmental objective, that includes
alignment with each of environmental objectives for activities contributing substantially to several objectives, is reported in the left table.
(d) The same activity may align with only one or more environmental objectives for which it is eligible.
(e) The same activity may be eligible and not aligned with the relevant environmental objectives.
(f) EL– Taxonomy-eligible activity for the relevant objective N/EL– Taxonomy-non-eligible activity for the relevant objective.
(g) Activities are reported in Section A.2 of this template only if they are not aligning to any environmental objective for which they are eligible. Activities that align to atleast one environmental objective are reported in Section A.1 of this template.
(h) For an activity to be reported in Section A.1 all DNSH criteria and minimum safeguards shall be met. For activities listed under A2, columns (5) to (17) are filled inon a voluntary basis. The substantial contribution and DNSH criteria that they meet or do not meet may be indicated in Section A.2 by using: (a) for substantial
contribution– Y/N and N/EL codes instead of EL and N/EL; and (b) for DNSH– Y/N codes.

Universal Registration Document 2023

Airbus Annual Report 149

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

Proportion of OpEx / total OpEx
Taxonomy-aligned per objective

Taxonomy-eligibled per objective

0%
0%
0%
0%
0%
0%

93%
0%
0%
0%
0%
0%

CCM
CCA
WTR
CE
PPC
BIO

EU Taxonomy KPIs Accompanying
Information
1. Accounting Policy
The Company’s EU Taxonomy disclosure covers the following
scope: EU Taxonomy share of turnover, capital expenditure(“CapEx”) and operational expenditure (“OpEx”) of theCompany’s Consolidated Financial Statements that, for the
purpose of EU Taxonomy disclosure, are split per economic
activity according to the applicable delegated acts under the
EU Taxonomy. For information regarding accounting treatmentof the applicable financial KPIs, please refer to the “Notes tothe IFRS Consolidated Financial Statements” (Note 4: Material
Accounting Policies).
In the context of EU Taxonomy disclosure, the Company’s
reporting may omit economic activity that in aggregate does
not exceed 1% of the total turnover, CapEx or OpEx, as theCompany expects such an economic activity to have no material
influence on the reporting purpose.
Turnover, CapEx and OpEx were determined and allocated to
the numerator by performing a mapping between the descriptionof activities in the EU Taxonomy and the Company’s portfolio ofsources of revenues, investments and expenses.

2. Assessment of Compliance with EU
Taxonomy Regulation
2.1 Information on Assessment of Compliancewith the EU Taxonomy Regulation
The assessment of compliance with the EU Taxonomy
Regulation has been carried out in four steps:–– determination of EU Taxonomy eligibility: screening of theCompany’s turnover, CapEx and OpEx versus the activities
described in the currently applicable Delegated Acts andallocation on the basis of the activity description, resulting ina list of eligible activities;–– determination of EU Taxonomy alignment with technicalscreening criteria: for the eligible activities which exceed
1%, applicable substantial contribution and do no significant
harm criteria have been identified and analysed, gathering theavailable and relevant information and evidence. By exception,
when related amounts are considered not material for theCompany’s business and would require unreasonable efforts
to assess their alignment with related TSCs, the Company
may report them as non-aligned;–– determination of EU Taxonomy alignment with the minimum
safeguards: following the guidance provided by the
Platform on Sustainable Finance in its “Final Report on

Minimum Safeguards” published in October 2022(1), andmore specifically by analysing the non-compliance criteria
proposed in the aforementioned report concerning humanrights, taxation, fair competition and corruption & bribery
areas at Company level.
This exercise has been conducted by a dedicated team involving
experts from different functions and Divisions through a numberof interviews and working sessions during the year.
In 2023, taxonomy eligible activities related to “– 4.24 Productionof heat/cool from bioenergy”, “– 7.3 Installation, maintenanceand repair of energy efficiency equipment” and “– 7.6 Installation,
maintenance and repair of renewable energy technologies”,
were related to projects aiming to improve energy efficiency andreduce CO2 emissions that are part of the Company’s transition
plan. They have been allocated to one taxonomy activity and one
environmental objective, avoiding the risk of double counting.
In 2023, the results of the self-assessment of minimum
safeguards criteria was positive taking into account the noncompliance criteria recommended in the Final Report on
Minimum Safeguards.

2.2 Contribution to Multiple Objectives
As an aircraft manufacturer, the vast majority of the Company’s
revenues, capex and opex relate to the “Manufacturing of aircraft”
activity (see tables above). Given that “Manufacturing of aircraft”
activity contributes to climate change mitigation and although it
may purchase an output from economic activity contributing toother environmental objectives, the Company assessed suchcontribution to any other objective as insignificant for reporting
purposes and therefore reports contribution exclusively to
climate change mitigation.

2.3. Disaggregation of KPIs
In 2023, the preparation and disclosure of figures as per
Taxonomy requirements did not require any disaggregation.

3. Contextual information
For the assessment of “Manufacturing of aircraft” activity inrelation with its product portfolio, “aircraft” covers the Company’scommercial aircraft, military aircraft and helicopters. According
to the published TSC related to “Manufacturing of Aircraft”, thesubstantial contribution criteria to the climate change mitigation
objective can be assessed (1) for “zero direct tailpipe CO 2
emission” aircraft, or (2) for aircraft meeting performance criteria
based on the ICAO CO2 standard. As the ICAO CO2 standard
is only applicable to commercial aircraft, while alignment is tobe reported from 2025, an alignment assessment on this partof the TSC (2) is only relevant for commercial aircraft products.

(1) Platform on Sustainable Finance – Final Report on Minimum Safeguards, October 2022

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3.1 Contextual Information about Turnover KPI

Future Developments

The eligibility of turnover includes aircraft and revenue
corresponding to maintenance, repair and overhaul activities.
Turnover related to other activities has been assessed andconsidered as not significant for reporting purposes andtherefore reported as 0%. Alignment of “Manufacturing ofaircraft” activity is to be reported from next year (see “Future
Developments” below).

In the coming years, the Company will continue to report under
the EU Taxonomy with regard to its Taxonomy-eligible economic
activities as well as its Taxonomy-aligned economic activities.
This entails a further and continuous review of the economic
activities. Future guidance on the EU Taxonomy could result
in updated definitions and other decision making in meeting
reporting obligations that may come into force. The Company
expects that its reporting will evolve over time as more insights
will be gained on how best to comply with the EU Taxonomy.

3.2 Contextual Information about CapEx KPIThe CapEx identified as eligible were added to property,
plant and equipment in 2023. Due to the Company’s activity,
the major proportion of reported eligible CapEx is related to“Manufacturing of aircraft” EU Taxonomy transitional activity.
In addition, and following the process described above in“– 2.1. Information on Assessment of Compliance with the
EU Taxonomy Regulation”, the Company has again in 2023
identified other taxonomy eligible activities, related to projects
aiming to improve energy efficiency and reduce CO2 emissions
that could make a substantial contribution to the climate change
mitigation objective. Eventually, the Company ensures that suchreported CapEx are not counted in “Manufacturing of aircraft”
activity.
Alignment of “Manufacturing of aircraft” activity is to be reported
from 2025 (see “Future Developments” below). For other CapEx,
in light of the level of administrative burden due to the complexity
and granularity of the applicable criteria as well as of the low
proportion such CapEx represent in the total reported eligible
CapEx, some investments could not be assessed as aligned by
the Company in 2023. In addition, the Company took a cautious
approach to assessing Appendix C so that concerned activities
did not meet related criteria in 2023.
In addition, based on the current list of activities included in the
EU Taxonomy, some of the CapEx contributing to the Company’s
decarbonisation plan as presented in section “– 1.2.2 Climatechange” could not be assessed as eligible.
The capital expenditures disclosed under the CapEx KPI are
not part of a CapEx Plan meeting the conditions specified under
the EU Taxonomy Regulation.

3.3 Contextual Information About the OpEx KPI
In the context of the EU Taxonomy reporting, the Company’s
OpEx KPI considers research and development costs, and istherefore related to “Manufacturing of aircraft” activity. Alignmentof “Manufacturing of aircraft” activity is to be reported from 2024
(see “Future Developments” below).

Pursuant to the delegate act published in 2023, aviation-related
activities are included in the EU Taxonomy and the Company willreport on the alignment under the activity “– 3.21 Manufacturingof aircraft” from next year, for which FY 2023 eligibility is reported
in the tables above. According to the published TSC related to“Manufacturing of Aircraft”, the substantial contribution criteria
to the climate change mitigation objective can be assessed for“zero emission tailpipe emission” aircraft, or for aircraft meeting
performance criteria based on the ICAO CO2 standard. As thisstandard is only applicable to commercial aircraft, an alignment
assessment is only relevant for commercial aircraft products.
The Company estimates that above 50% of eligible turnoverfrom the latest generation aircraft could meet the substantial
contribution criteria, with an assessment of alignment subject
to meeting the DNSH criteria. This ratio was calculated basedon the “replacement ratio” computation rules as provided in
the delegated act, taking into account data available fromindependent data providers. The Company used the Cirium
database for this exercise, from which it compared the difference
between aircraft in-service and stored at the beginning and at
the end of a 10-year period, with the number of aircraft delivered
over that 10-year period. To do so, it considered commercial
aircraft with more than 20 passengers and freighters with over
one tonne payload. As contemplated by the regulation andto ensure coherence across the sector, the Company would
welcome this ratio being computed by a third party in the future,possibly the EU Commision supported by EASA.
Accordingly, latest generation aircraft programme-related CapEx
and R&D OpEx should meet TSC related to “Manufacturing of
Aircraft” for substantial contribution to climate change mitigation
at least in proportions similar to commercial aircraft turnover.
Activities from the Company’s two Divisions may be covered
to some extent in future developments of the EU Taxonomy,
while current level of information available does not enable theCompany to provide an estimate.

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1.2 Non-Financial Information

1.2.20 GRI Index
This table, whose aspects are material for the Company and its stakeholders, follows the GRI Standards Guidelines, in accordancewith the “core” option. When links target a Non-Financial Statement section, additional resource links can be found in the tabledisplayed in the sub-section I. Introduction.
GRI

Disclosure

Related content

GRI 2: General Disclosures
GRI 3: Material Topics
The Organisation and its reporting practices
2-1

Organisational details
Name of the organisation

Airbus SE

Location of headquarters

Leiden, the Netherlands

Location of operations

Airbus global presence , Airbus Helicopters global presence

Ownership and legal form

See “– 3.1.2 Legal Form”

2-2

Entities included in the consolidated financial
statements

See Consolidation Scope 2023

2-3

Reporting period, frequency and contact point
Reporting period

From 1st of January to 31 of December

Reporting cycle

AnnualContact point for questions regarding the report

See sustainability on airbus.com

2-4

Restatements of information

See data per sustainability topics in the respective sub
sections of “– 1.2 Non-Financial Information”, “– 1.2.17 ESG
Data Board”
Please refer to the IFRS Consolidated Financial Statements,
notes 23, 36

2-5

External assurance

Find the full independent Assurance Report from Ernst&Young

Activities and workers
2-6

Activities, value chain and other business
relationships
Activities, brands, products, and services

Markets served

Scale of the organisation

Get to know Airbus
See “– 1.1 Presentation of the Company”
See what-we-do on airbus.com
See “– 1.1 Presentation of the Company”
See “– 1.2.13 People”, “– 1.2.17 ESG Data Board (Social
Performance)”“– 2.1 Operating and Financial Review”
Commercial orders & deliveries , Helicopters orders &deliveries

Supply chain

See “– 1.2.15 Responsible Supply Chain”, “– 1.2.17 ESG Data
Board (Social Performance)”

Significant changes to the organisationand its supply chain

See “– 1.1.2 Airbus (Commercial Aircraft)” sections “Airbus
Atlantic” and “Airbus Aerostructures and Premium Aerotec
Industry”, “– 1.2.12 Social dialogue”, “– 1.2.15 Responsible
Supply Chain”, “– 2.1.5 Changes in Total Equity” (Including
Non-Controlling Interests)

2-7

Employees

See “– 1.2.13 People”, “– 1.2.10 Human rights”, “– 1.2.17 ESG
Data Board (Social Performance)”

2-8

Workers who are not employees

See “– 1.2.13 People”, “– 1.2.10 Human rights”,“– 1.2.15 Responsible Supply Chain”, “– 1.2.17 ESG Data
Board (Social Performance)”

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GRI

Disclosure

1

Related content

Governance
2-9

Governance structure and composition

See “– 4 Corporate Governance”
Airbus’ Corporate Governance on airbus.com

Strategy, policies and practices
2-22Statement on sustainable development strategy

See Airbus engagement for sustainability on airbus.com ,see CEO statement on airbus.com , see CEO’s commitment
to sustainability in the UNGC engagement letter 2023

2-23

Policy commitments

See “– 1.2.10 Human rights”, “– 1.2.14 Business Integrity”,“– 1.2.15 Responsible Supply Chain”, “– 1.2.16 Community
Impact”

2-28

Membership associations

ATAG , IAEG , The Conference Board , GIFAS , World
Economic Forum , Advanced Robotics for Manufacturing ,Initiative Chefsache , BDLI

Stakeholder engagement
2-29

Approach to stakeholder engagement

2-30

Collective bargaining agreements

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.12 Social dialogue”, “– 1.2.17 ESG Data board(Social Performance)”

Disclosure on material topics
3-1

Process to determine material topics

3-2

List of material topics

3-3Management of material topics
Precautionary principle or approach

See “– 1.2.1 The Company’s Approach to Sustainability”

See Enterprise Risk Management on airbus.com
See “– 4.1.3 Enterprise Risk Management System”,“– 1.2.1 VII Airbus’ Way Forward: Vigilance Plan”,“– 1.2.1 VII Vigilance Plan (Devoir de Vigilance)”

Lead the journey towards clean aerospace
Climate change
3-3Management of material topics

302-1

Energy consumption within the Organisation

302-4

Reduction of energy consumption

302-5

Reduction in energy requirements of products andservices

305-1

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

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.2 Climate Change”

See “– 1.2.2 Climate Change”, “– 1.2.17 ESG Data Board(Environmental Performance)”

See “– 1.2.2 Climate Change”, “– 1.2.17 ESG Data Board(Environmental Performance)”

Pollution
3-3Management of material topics

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.3 Pollution”

305-7

Nitrogen oxides (NOx), sulphur oxides (SOx), andother significant air emissions

See “– 1.2.3 Pollution”, “– 1.2.17 ESG Data Board(Environmental Performance)”

Materials and circularity
3-3Management of material topics

306-1

Waste generated

306-2

Management of significant waste-related impacts

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.4 Materials and circularity”
See “– 1.2.3 Materials and circularity”, “– 1.2.17 ESG Data Board(Environmental Performance)”

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GRI

Disclosure

Related content

3-3Management of material topics

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.5 Water”

303-3

Water withdrawal

303-4

Water discharge

Water

See “– 1.2.5 Water”, “– 1.2.17 ESG Data Board(Environmental Performance)”

Biodiversity
3-3Management of material topics

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.6 Biodiversity”

304-2

Significant impacts of activities, products
and services on biodiversity

See “– 1.2.6 Biodiversity”

Build our business on the foundation of safety and quality
Aviation and product safety
3-3Management of material topics

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.7 Aviation and Product Safety”, “– 1.2.8 Cyber security”

416-1

Assessment of the health and safety impacts
of product and service categories

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.7 Aviation and Product Safety”

3-3Management of material topics

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.7 Aviation and Product Safety”, “– 1.2.9 Health and Safety”,“– 1.2.15 Responsible Supply Chain”,“– 1.2.1 VII Vigilance Plan”

403-1

Occupational H&S management system403-2

Hazard identification, risk assessment, and incident
investigation

403-3

Occupational health services

403-4

Worker participation, consultation, andcommunication on occupational H&S

403-5

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

Health & safety

See “– 1.2.9 Health and Safety”,“– 1.2.15 Responsible Supply Chain”,“– 1.2.17 ESG Data Board (Social Performance)”,“– 1.2.1 VII Vigilance Plan”

Respect human rights and foster inclusion
Inclusion and diversity
3-3Management of material topics

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.11 Inclusion and Diversity”,“– 1.2.15 Responsible Supply Chain”, “– 1.2.1 VII Vigilance Plan”
See “– 1.2.11 Inclusion and Diversity”,“– 1.2.15 Responsible Supply Chain”, “– 1.2.17 ESG Data Board(Social Performance)”

405-1

Diversity of governance bodies and employees

See “– 4.1.1.1 Board of Directors”, “– 4.1.1.3 The Executive
Committee”
Board of Directors composition
composition on Airbus.com

and Executive Committee

Workforce, human rights and social dialogue
3-3Management of material topics

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.10 Human rights”, “– 1.2.11 Inclusion and Diversity”,“– 1.2.12 Social Dialogue”, “– 1.2.13 People”,“– 1.2.15 Responsible Supply Chain”, “– 1.2.1 VII Vigilance Plan”

401-1

New employee hires and employee turnoverSee “– 1.2.13 People”, “– 1.2.17 ESG Data Board(Social Performance)”

401-2

Benefits provided to full-time employees

See “– 1.2.13 People”

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GRI

Disclosure

Related content

404-1

Average hours of training per year per employee

404-2

Programmes for upgrading employee skills
and transition assistance programmes

404-3

Percentage of employees receiving regularperformance and career development reviews

201-3

Defined benefit plan obligations and other retirement
plans

See “Risk Factors – 2. Business and operations-related risks(Pension Commitments)”, “– 2.1.6.1 Cash Flows (Contribution
to Plan Assets of Pension Schemes)”,“– 4.2.1.3 Implementation of the Remuneration Policy in 2023:
CEO (h. Retirement)”

407-1

Freedom of association and collective bargain

See “– 1.2.10 Human rights”, “– 1.2.12 Social dialogue”,“– 1.2.15 Responsible Supply Chain”, “– 1.2.17 ESG Data
Board (Social Performance)”

See “– 1.2.13 People”, “– 1.2.17 ESG Data Board(Social Performance)”

Exemplify business integrity
Business integrity
3-3Management of material topics

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.14 Business Integrity”, “– 1.2.1 VII Vigilance Plan”

205-1

Operations assessed for risks related to corruption

See “– 1.2.14 Business Integrity”, “– 1.2.17 ESG Data Board(Social Performance)”, “– 1.2.1 VII Vigilance Plan”

205-2

Communication and training about anti-corruption
policies and procedures

See “– 1.2.14 Business Integrity”, “– 1.2.17 ESG Data Board(Social Performance)”, “– 1.2.1 VII Vigilance Plan”

205-3

Confirmed incidents of corruption and actions taken

See “– 1.2.14 Business Integrity”, “– 1.2.17 ESG Data Board(Social Performance)”, “– 1.1.7 Legal and Arbitration
Proceedings”

Responsible supply chains
3-3Management of material topics

308-1

New suppliers screened using environmental criteria

308-2

Negative environmental impacts in the supply chain
and actions taken

414-2

Negative social impacts in the supply chain andactions taken

408-1

Operations and suppliers at significant risk forincidents of child labor

409-1

Operations and suppliers at significant risk forincidents of forced or compulsory labor

204-1

Proportion of spending on local suppliers

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.15 Responsible Supply Chain”, “– 1.2.1 VII Vigilance Plan”
See “– 1.2.15 Responsible Supply Chain”, “– 1.2.17 ESG Data
Board (Social Performance)”, “– 1.2.1 VII Vigilance Plan”

See “– 1.2.10 Human rights”, “– 1.2.15 Responsible Supply
Chain”, “– 1.2.17 ESG Data Board (Social Performance)”,“– 1.2.1 VII Vigilance Plan”

See “– 1.2.15 Responsible Supply Chain”, “– 1.2.17 ESG Data
Board (Social Performance)”, “– 1.2.1 VII Vigilance Plan”

Community impact
3-3Management of material topics

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.16 Community Impact”

203-1
203-2

Infrastructure investments and services supported
Significant indirect economic impacts

See “– 1.2.1 The Company’s Approach to Sustainability”,“– 1.2.16 Community Impact”

201-1

Direct economic value generated and distributed

See “1.2.1 The Company’s Approach to Sustainability”,“– 1.2.15 Responsible Supply Chain”, “– 1.2.17 ESG Data
Board (Social Performance)”

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1.2.21 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 “– 1.2.17 ESG Data Board”, section“Environmental Performance / Energy”

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

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

See “– 1.2.2 Lead the Journey Towards
Clean Aerospace”
See “– 1.2.17 ESG Data Board”, section“Environmental Performance / Waste”

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

See “– 1.2.8 Cyber Security”
See “– 1.2.17 ESG Data Board”, section“Social Performance / Cybersecurity”

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
associated with product safety-----

RT-AE-250a.1
RT-AE-250a.2
RT-AE-250a.3
RT-AE-250a.4

See “– 1.2.7 Aviation and Product Safety”

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

See EU Taxonomy estimates disclosure in“– 1.2.19 EU Taxonomy”
See “– 1.2.2 Lead the journey towards
clean aerospace”

Materials Sourcing
Description of the management of risks associated with the use ofcritical materials--

RT-AE-440a.1

See “– 1.2.15 Responsible Supply Chain”

Business Ethics
Total amount of monetary losses as a result of legal proceedings
associated with 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 thevalue chain

RT-AE-510a.1
RT-AE-510a.2
RT-AE-510a.3

See “– 1.2.14 Business Integrity”

Activity metrics
Production by reportable segment: Production should be disclosed
as the number of units produced by product category, where relevant
product categories include ground vehicles, aircraft, marine vehicles,
vehicle and aircraft components, and space and weapons systems
Number of employees

RT-AE-000.A
RT-AE-000.B

See “– 2.1.4 Results of Operations”(“– 2.1.4.1 Revenues”)
See “– 1.2.17 ESG Data Board”---------

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1.3 Other corporate activities
Digital and Information Management at Airbus: Overview
Digital and information management (“Digital”) has been akey discipline at Airbus for many years. In 2023, the Company
continued its digital transformation journey, pursuing new
developments and achieving further rationalisations.
Digital continued to address the Company’s challenges andenable Airbus to be a sustainable leader in the aerospace anddefence industries. Notable progress during 2023 included:–– further steps toward a more efficient and simplified digital
ecosystem, aimed at increasing the Company’s ability to invest
in the future. This was achieved through Product Lifecycle
Management upgrades, data quality improvements, reworkingof resources planning for Operations, and the improvementof our systems’ resilience and performance;–– new digital design, manufacturing, and services deployments.
These are now underway for Eurodrone and the A350 freighter,laying a solid foundation for future programmes designed
to help kick-start the aerospace industry’s decarbonisationtransformation;–– the initiation of an innovative seamless digital user experience
to better engage with employees and customers throughout
their digital journey;–– to make the Company more attractive to digital talents
worldwide, digital-focused employee career development
paths have been created and a cybersecurity masters cohort
has been initiated via the Airbus Digital School.
This year once again demonstrated the uncertainty andcomplexity of the world in which the Company operates.
In response, Digital aims to help make Airbus more robust andflexible. This aim was advanced through implementation of highgrade cybersecurity capabilities and technology shifts such as
modern device management (a cloud-based solution allowing
for improved user experience and security on smartphones
and laptops). These efforts to build resilience reached beyond
compliance tools to include export control and, more generally,
quality requirements.

Digitally Enabled End-to-End Processes
Digital Design, Manufacturing and Services (“DDMS”)
DDMS is a group-wide transformation programme aimed atcreating a digital environment where our future generation
aerospace products and their industrial and support / 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 development processes, digitalcontinuity and digital twins across the entire programme lifecycle.
It also relies on the use of model-based system engineeringand the application of a flexible and modular architecture
approach to the co-development of our products, industrial
and support / services systems. The mandate is for DDMS
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
the Divisions.
The key major achievements within DDMS this year were thefollowing:
1. People: transformation & competences
A further step was taken in the overall DDMS transformation witha steep ramp-up of change management, upskilling and user
adoption in all divisions. A special focus was put on Single Aisle
and Future projects in the Airbus Commercial Aircraft business,
as well as Eurodrone in Airbus Defence and Space, and Gearbox
manufacturing and future projects in Airbus Helicopters. Morethan 20,000 people have started their upskilling journey either
through digital or classroom training sessions in Lean Product
Life cycle management, Automated Electrical Design capabilities
and Systems Engineering / Model Based Systems Engineering(MBSE). With more than 5,500 people trained to utilise these newcapabilities in 2023 (compared to 2,500 in 2022), the Company
made solid progress towards applying new ways of working tosupport the current industrial ramp-up, while preparing for theCompany’s future developments.
2. New co-development processes, methods and theassociated integrated digital environment; progressive
deployment on key programmes
Single Aisle (A320 Family): Further progress has been madein the digitalisation of the Single Aisle programme, especiallyin the area of cabin and customisation, and the Single Aisle
is now our most advanced commercial aircraft programme
in terms of the design and installation of electrical systems.
Through implementation of digital continuity and automation inthis process, the quality of the design and the overall lead timeof the process has been significantly improved. Capabilities of
the new Single Aisle Product Lifecycle Management (so-called
Lean PLM) have been further enhanced to improve the extended
enterprise cooperation with “Design and Build” and “Build toPrint” suppliers. The structure assembly industrial process has
been stabilised through new process methods and tools fortolerance management.
A350 Family: Full digital continuity from Engineering to
Manufacturing Engineering through shop floor execution has
begun being deployed, which will facilitate workload and leadtime reductions in order to support the programme ramp-up.
Key contributions have been made as well on the A350 Freighter
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1.3 Other corporate activities

digital solutions on system design (through an MBSE approach),and virtual testing and industrial assembly design (throughmodelling and simulation).
Future programmes in the Airbus Commercial Aircraftbusiness: The MBSE (Model Based System Engineering)
deployment across engineering and manufacturing engineering
is well on track with it being applied to a number of selected use
cases on legacy, future projects and Research and Technology.
More than 300 people have been trained and have reached asuitable proficiency level in MBSE, enabling the Aircraft andIndustrial Architects community to work at the same time on aconsistent architecture baseline sharing the same models anddata, which facilitates their ability to coordinate efforts. The
deployment of the 3-D physical design architecture frameworkhas the benefit of allowing for cross-discipline collaboration
across aircraft and industrial design, which adds efficiency by
reducing incompatible outcomes and the need for reconciliation
during the design phase. Finally, during this year the Company
began foundational work toward new cross-disciplinary digital
capabilities that should ultimately enable multi-systems andmulti-dimension optimisation across numerous parameters,
utilising Artificial Intelligence capabilities.
Eurodrone & FCAS: The Eurodrone development continues
to rely on DDMS capabilities, which may enable concurrent
design activities for the preliminary and critical design phases.
More than 1,700 employees and partners have so far begun or
undergone training for DDMS capabilities for Eurodrone, and for
FCAS a progressive onboarding approach will be undertaken
during 2024 and 2025.
Helicopter Programmes: Further progress has been madefor the deployment of DDMS within Helicopter programmes.
The deployment of an advanced 3D viewer, to be available
across all relevant disciplines, has continued throughout thedivision. The initial deployment of a digital continuity solution(for use between the design teams and the shop floor) has been
made at one FAL, paving the way for its eventual deployment
across current and future FALs. Future steps within Helicopterswill be the deployment of MBSE, and the employment of adigital simulation environment and the deployment of further
collaborative platforms, in order to support the developmentof the Next Generation Helicopters.
3. Near real-time digital continuity with a network of platforms
The “network of platforms” aims to connect all of the Company’s
digital platforms, processes and data in an integrated way,with the goal of enabling near real-time digital continuity
throughout the complete business value chain (both internallyand externally). The “network of platforms” should facilitate
better data structuring by (inter alia) securing “single sourceof truth” references and enhancing quality, consistency andease of access for re-usability, all within an overall stronger
governance framework. In 2023 the Company implemented
the first use cases, which yielded substantial time gains inaccessing source data. Ultimately the “network of platforms”
should yield a more rationalised and efficient digital landscape,which should benefit our operational teams and partners. In
2024 the Company will begin to deploy the framework and theapproach at scale.

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Airline Sciences
The aim of the Airline Sciences team is to provide an operational
digital representation of an airline in all its complexities andreflecting various business models. This modelling allows theCompany to take a bottom-up approach and to test out different
aircraft technologies and concepts, validate product strategy,
assist in sales campaigns, develop new services and, more
importantly, understand the customers’ perspective across alllayers of the Company.
Airbus has set sustainability at the heart of the Company’s
purpose and has the ambition to lead the decarbonisation of
the aviation industry. Accurate monitoring and modelling ofaircraft operational data is a core element of its decarbonisation
strategy. As such, the Airline Digital Twin capability is being
used heavily in order to assess CO 2 and non CO 2 effects,
including comprehensive emissions calculations, effect onairline profitability as well as operational sensitivities. Airbus
has been actively involved in an array of public funded projects
related to the impact and mitigation of Scope 3 emissions on
the climate. Thanks to this funding, the Company has developed
a substantial simulation and data analytics capability enabling
detailed flight by flight analysis on a massive scale. This new
capability will be key in advocating Airbus’ position on any future
legislation, can serve to test new Airbus technologies on anairline level to mitigate aviation induced climate impact, andcan help to drive new services to the wider aviation community.
Finally, in the context of aircraft sales campaigns, the Airline
Digital Twin was used in supporting several key aircraft sales
campaigns, for instance for assessing the effect of the RussiaUkraine airspace blockage on a detailed and realistic level.

Artificial Intelligence (“AI”)
After successfully applying specific AI solutions across thebusiness domains, the Company is now accelerating andmaturing its industrial setup to deliver AI at scale. This includes
delivering secure and compliant AI platforms and services, andmaking available reusable and accessible core AI technology
capabilities and patterns in a responsible way. These capabilities
include:–– Computer vision to enable visual quality inspection andimprove the safety and quality of the Company’s manufacturing
environment;–– Pattern recognition and time series analysis to detect
anomalies and avoid failures in the Company’s industrial
machines and aircraft;–– natural language processing to classify data (e.g. export
control) and secure the Company’s compliance;–– generative AI to generate text content (chatbot assistant,
document generation) or image content (marketing andtraining datasets) to support employee efficiency and productdesign;–– optimisation to improve scheduling and planning activities;
and–– hybrid modelling through machine learning to build surrogate
models of physical systems, accelerating design activities andincreasing potential design space.
With the emergence of generative AI and the rapid growth ofpotential use cases across the Company, a dedicated task
force has been launched to ensure a central governance andthe development of an operational set up to benefit from this1. Information on the Company’s Activities
1.3 Other corporate activities

technology. This will be complemented with frameworks tomanage the life cycle of a wide range of operationalised AI anddecision models. These frameworks are paving the way towardachieving compliance in using AI in safety relevant systems inline with upcoming regulations such as the EU AI Act.

Internet of Things (IoT) and Mixed Reality
The Company’s ambition is to use Internet of Things andConnectivity solutions to:–– support production of internal parts or aircraft thus ultimately
increasing operational safety. Further steps will include
systematically utilising collected data to foster analytics andartificial intelligence-based solutions, to ultimately improve
designs or anticipate issues;–– support sustainability targets by collecting and analysing
different consumptions (water, electricity, raw materials, etc.)
in order to better optimise them in the future;–– support site modernisation and help to build an attractive
workplace.
The Company intends to use mixed reality (i.e. augmented reality
and virtual reality) solutions in the following ways:–– to support cabin configuration or product showcases,
especially for the A320 Family. Mixed reality will also begin
to enter into use at certain FAL in 2024, to support certain
elements of the aircraft assembly process (such as harness
installation), with many additional potential uses having been
identified;–– to deploy remote assistance, enabling employees to sharewhat they see (hands free) with engineers in order to avoid
travel and to more rapidly address issues. It will then be
deployed to the Company’s suppliers and customers;–– a marketing configurator will be deployed, which will enable
the Company’s customers to virtually configure aircraft (ascan be done for personal automobiles), and which will yieldvaluable data.

Digitalise the aircraftIn addition to supporting activities at final assembly level bysupporting the aircraft connectivity and ground services mission,a full aircraft-oriented platform was set up in 2023. With the newworld of commercial aircraft becoming hyperconnected, thisnew platform will allow the Company’s fleet to enter into andinterface with this “new world”. New digital use cases like IoT
services, onboard apps ecosystem management, AI, Livedata,
remote diagnostics and remote updates will be supported via thisplatform. All these use cases are for deployment while in flight.

Robotics and Automation Transformation
In 2022, Airbus launched its robotics and automationtransformation programme to secure the deployment of an
ambitious robotics and automation roadmap for the Company’s
future industrial system. The robotics roadmap is organised
around five major streams covering focus areas of the Company’s
industrial system: Assembly, Paint, Composite, Logistics andInspection.
With these five streams, the Company intends to develop
its own robotics solutions to adapt to complex and specificrequirements of the aerospace industry. Additionally, Airbus will

strive to become its own robotics integrator and implement
these robotics solutions in its production lines. The Company’s
strategy is to achieve both internal developments and integration
with its selected strategic industrial partners. Following theconstruction of Airbus’ first aerospace robot in 2022, in thecourse of 2023 the Company saw the further creation ofaerospace robots and technologies within the market.
Airbus also successfully established several test benches andpassed major milestones on various core robotics technologies.
Physical robot demonstrations were performed, showcasing
unique capabilities and technical solutions, and paving the way
for further resources to be allocated to continue developing
these pathways. The Company’s overall goal is to reduce its
dependence on external robotics integrators, and to takeownership of building the right technologies and solutions for
its industrial system.

Cyber Security
The Company’s digital cybersecurity transformation journey
progressed with the reinforcing of its secure connectivity
model with the Company’s extended enterprise, and throughthe further strengthening of core controls for the Airbus
Commercial Aircraft business environment and beyond toother divisions, regions and affiliates. In line with its ambition,
the Company continued to increase the scope and coverageof active running services to further protect its business. The
Company achieved good progress toward protecting its criticalassets and enhancing its cloud security posture to cutting edge
standards. This year also saw a concrete security uplift in manyindustrial areas, raising the maturity of the security controls. The
Company’s resilience was also at the heart of and will continue
to mature to safeguard Airbus business.
The recruitment and development of key skills and competences
remains a top challenge. The Airbus Cyber Security Diploma
establishes a target for achieving a certain level of expertise,
and this initiative continues to evolve with the creation of a“master” level and the arrival of a new cohort of students for thesecond year running. The Company now has a solid platform
to develop “home-grown” cyber security expertise to support
its talent pipeline in future years. As it is an Airbus-designed
programme, the Company has been able to tailor the content
and delivery to match the exact needs of the business. This
programme is a key addition to the Company’s existing portfolioof early career programmes which over many years have beensuccessful in embedding high potential individuals within the
Company’s teams across Europe. Alongside its constant reinsourcing efforts with teams settled in Europe and India, theCompany strengthened its partnership with Airbus Protect,as part of its intercompany services approach, to deliver its
cybersecurity commitments, and build the base to enforce
its partnership aspirations as demonstrated with the Security
Operation Centre.
In 2024 and onward, the Company will work to continue
to improve and mature its services, aiming to progress theresilience of its digital solutions to protect its business. With aview to achieve and retain high grade knowledge in Europe,
India and within the regions, the Company must continue toensure the development and maintenance of key skills througha robust competence development strategy.

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Digital Transformation at Defence
and Space
In 2023, major progress was made with the “Fix the digitalfoundation” programme, which aims at streamlining, simplifying
and standardising the complex IT landscape at Airbus Defence
and Space. In addition to creating a new target architecture
set-up, the overall number of legacy networks started to be
reduced. A critical next step will be the establishment andaccreditation of the International Restricted Layer (IRL), which
is designed to enable the exchange of restricted data acrossnations.
Due to changing business context and requirements, majortransformation programmes, such as the ERP (Enterprise
Resource Planning) roadmap and DDMS (Digital Design,
Manufacturing and Services), went through a re-baselining
this year in order to adapt the scope, deliverables and cost
structure. The Airbus Restricted Cloud, a private cloud platform
hosted on Airbus Defence and Space premises, went live witha first rollout in Germany, enabling the onboarding of selected
projects. Finally, a data strategy for the division was defined,
providing a roadmap for the coming years to leverage data asa strategic asset, reinforcing data literacy for employees andhelping to pave the way towards a more data-driven company.

Digital transformation at Helicopters
Airbus Helicopters has launched two major digital transformation
programmes; New ERP and DDMS. Business value will be
pursued through the standardisation and harmonisation of
the Company’s processes between all sites, which is crucial
after the site specialisation efforts undertaken at Helicopters
during recent years. In order to maximise the benefit of thosetransformations, the Company is investing in data and analytics.
For example, within Airbus Helicopters the “top data” (i.e. key
operational performance measures) is being monitored through
KPIs (Key Performance Indicators) in order to sustainably
improve data quality, which should help to optimise operational
performance.
With the Company having defined its digital ambition for 2030,
Helicopters is channelling that ambition into concrete projects
that should yield benefits in the future. Part of Helicopters’
digital ambition is to improve the customer experience, byfor example reducing lead-time for more complex orders andsmoothing the digital interface by archiving past exchanges.
Ultimately, Helicopters aims to renew and streamline customers’
digital experience and to offer user-friendly and fully integrated
solutions, ideally from prospect phase, to offer and contracting,production, and through the support and services phase.

Digitally-enabled products and services
SkywiseAt its origin in 2015, Skywise was launched to unlock data fromthe Company’s discrete legacy systems to make it accessible andactionable by those needing it for their day-to-day operations.
Now fully industrialised, Skywise adoption is still expanding at a
rapid pace, growing approximately 32% to reach approximately

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36,500 users in 2023 across all Airbus functions and divisions. It
demonstrates that the Company’s strategy to place data at theheart of its digital transformation is yielding results. With dataunlocked from the previous silos, a virtuous circle has beencreated: with in-service data flowing back into operations andaircraft design, delivering incremental product, support andservices improvements and transforming the Company intoa more agile, empowered and data-driven organisation. This
success was recognised in 2022 by a Digital Engineering award
for “Digital Transformation of the Year” in a cross-Industry jury
panel.
Skywise data architecture ensures that validated data
becomes the single key point of reference underpinning theCompany’s operations and products. Building on successful
industrial use cases, Airbus initiated the implementation of
its Data Product strategy, which aims at supporting end-toend business processes with an integrated data flow, enabling
digital continuity for Airbus legacy programmes. This effort ispaving the way for the DDMS digital continuity framework.
Furthermore, Skywise is the flagship platform of the aerospaceindustry’s digital transformation, connecting Airbus, airline
customers and some key aerospace suppliers. With Skywise
directly supporting the operations and maintenance of close
to 11,000 (Airbus and other OEMs) commercial aircraft, theCompany estimates that it is saving the airline industry at least
US$ 200 million a year, and has accelerated their overall aircraft
operational availability and their post-crisis aircraft return-toservice. With more than 50% of the Airbus fleet in service
now supported by Skywise, 2023 was also the year of new
customers subscribing to Skywise Core [X] premium packages
as well as S.Health Monitoring and S.Predictive Maintenancedigital solutions.
Skywise was designed from the start with the appropriate
security framework, strict data governance implementationand industrial scalability. This made it possible to start small
and then scale up. The technology partners’ world-leading
capabilities in data integration played a key role in the adoption;
yet this continuous growth was driven by the focus on value
creation, engagement with the business and employees’ digitalskills upskilling (4,900 users trained by the Skywise Academy
as of end of 2023), more than by the technology itself.

Digital services for helicopters
In 2023, Helicopters Support & Services continued its digitaljourney keeping the same ambition for 2024 and coming years.
The use of Information Management systems to standardise
processes and data is becoming generalised with major projects
such as enhancing technical data efficiency or reducing missing
parts. Digital continuity is addressed through DDMS, New ERP
and other cloud-based solutions to accelerate decision making
and reduce low-value administrative tasks. Securing data andtools and maintaining compliance with legal and certification
requirements is also a key topic. Data is increasingly being used
to improve safety, fleet availability and to optimise customer
costs (including digital customer support). Finally, digital
innovation is being promoted to support business development
and achieve the cost reduction objectives.

1. Information on the Company’s Activities
1.3 Other corporate activities

Digitally enabled people
Google Workspace deployment
Google and Airbus continue to partner to further improve thefunctionalities of Google Workspace. Gmail has been deployed
to all the employees of the Company (except in Airbus Defence
and Space Germany where the migration will start soon). This
Google collaboration solution is very well adopted within Airbus
Commercial Aircraft where 65,000 users (53%) do not have
Microsoft Office anymore. To reach the next level, Airbus has
engaged in deep discussions with French (ANSSI) and other
European authorities to allow Export Controlled and National
Security Unclassified data to be stored in Google Workspace. In
order to reach this level, data tagging and sovereign encryption
solutions will be required. Finally, to retire a maximum of Microsoft
Office licences, the Company continues to invest in transforming
its applications and core IT infrastructure (such as SAP) to becompatible with Google Workspace.

Modern workplace
Airbus is working towards developing a more efficient andresilient workplace, aimed at improving employee productivity
from anywhere, anytime and from any device, thanks to its
modern devices management programme. The first deployments
of modern Windows 11 devices will start at the beginning of 2024.
Also, the modern workplace is now even further improved withsmartphone deployment initiated in 2022, to enable seamless
communication and collaboration between all our employees.
This deployment was completed within Airbus Commercial
Aircraft, with more than 62,000 employees equipped with asmartphone.

IM eXperts Career Path
Since 2021, the Company has been actively developing the
IM eXpert career path with the Airbus College of eXperts.
The Company strongly believes its digital technical expertise
will continue making a significant contribution to Airbus’ future
success; a future where digitalisation, cyber security risk
management, automation, cloud technology, power of data,
connectivity, artificial intelligence and much more have become
not only a business enabler, but also a competitive advantage.
The IM eXpert career path officially acknowledges the extensive
technical expertise of the Company’s employees, providing themwith more opportunities for growth in their daily roles.

“digital” profile candidates as part of its overall efforts towardenhancing its attractiveness to new candidates and retaining
current talents:–– contribution to attrition rate of all digital profiles decreased from
14% in 2022 to 9% in 2023 in the Company (average attrition
within external IT companies: 18% of attrition), with significant
positive feedbacks related to offered technical recognition(certifications, career framework in Airbus for digital profiles,
learning means, mentorship, etc.);–– 6,200 employees across Airbus have a “digital” job, and74,000 employees have at least a competence/skill in theirposition linked to digital/IT worlds (+23% since 2023);–– 80% of the digital profiles in the Company can benefit
from the designed career paths framework for architects(1,100 employees), technology specialists (~500 employees),
developers (~1,000 employees), IT operation managers(~1,000 employees), IT product /ser vice managers(~1,000 employees), innovation managers (~200 employees)
and data analysts/scientists (~700 employees). Very good
feedback received from managers and employees using them;–– 14,000 employees trained on digital upskilling solutions (fromawareness to specialists), with an average satisfaction rate 4
out of 5;–– 5,100 active members in communities of practice (social
learning) related to the Company’s digital jobs and capabilities,
exchanging best practices, pain points, getting technicalmentorship, participating in events and seminars, etc.;–– 730 employees being certified on data analytics, on data
scientists, on Cloud, on Information technology infrastructure
library (ITIL) and on architects skills;–– a successful learning expedition pilot for Airbus leaders
growth on digital was launched, to boost digital opportunities
implementation with related culture change in manufacturing,
supply chain, finance and customer services as first priorities.

Concluding thoughts and 2024 Challenges

This initiative aligns with the Company’s strategic priorities,
ensuring the retention of key competencies. Simultaneously, itoffers a valuable avenue for talented individuals eager to broaden
and deepen their technical and interpersonal skills. In 2023 theCompany expanded further the D&IM eXperts Career Path bothin terms of eXpert positions (+9, total 72 positions) and in termsof nominated experts (13 newly nominated eXperts, 43 eXperts
total), extending the footprint outside the core countries(first eXpert nominated in India) and in additional strategic areas.

This year’s achievements are a testament to the strong
collaboration between all participants from all divisions. Digitalhas contributed to the Company’s success by delivering thetargeted added value to Airbus, its partners, and customers.
In 2024, the Company’s ambition will remain unchanged: bethe digital engine of sustainable aerospace for a safe, united
world. The Company will endeavour to remove data boundaries
to create a seamless data-driven world, enabling end-to-end
decision-making and supporting the ramp-up in the Company’s
production rates. The past few years have shown how importantresilience is. Digital will do its best to make Airbus digitally
adaptable and strong, with cybersecurity capabilities at its core
and will endeavour to unleash cloud and sovereign capabilities.
The Company must continue its work to decarbonise the industry.
Contributing to the emergence of a lower-emissions aviation
sector is one of Digital’s responsibilities, and the Company willcontinue to work hard to provide the means to meet emissions
targets with new monitoring systems, material traceability, andnew sustainable aviation solutions for its customers.

Digital academy services for all

Research and technology

Airbus Digital Academy team identifies, both at group level
and worldwide, the key necessary skills, competences andpeople development means necessary to grow and use all theopportunities presented by the Company’s digital transformation.
In 2023 the Company worked to increase its attractiveness to

The Airbus Technology and Engineering Department is led by
the Chief TechnologyOfficer (“CTO”). Part of its responsibility
is to define, deliver and protect all the Company’s researchand technology (“R&T”), coordinate the Company’s innovation
activities, enable technology synergies across the group,

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and ensure expertise in breakthrough technologies. The R&T
Programme department applies a lean project-based approach,and encourages and coordinates technological collaboration
with external research communities and partners, including
technical and scientific experts. These duties are delivered
through the capabilities further outlined below.
The Company-wide integration of R&T and alignment withinstitutional research partners is achieved through crossportfolio technology planning and road mapping, giving acomprehensive 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.
Specific cross-divisional activities are delivered through the
Disruptive R&T department consisting of:–– Central R&T (“CRT”): 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;–– Demonstrators (UpNext): development of selected
breakthrough technologies is accelerated through Airbus
demonstrators, by employing rapid maturation methods. Thisfunction delivers, thanks to its fully owned Airbus UpNext
subsidiary, flight and ground demonstrator projects that drive
collaborative new ways of working, provide very high levelsof transparency and challenge the status quo by embedding
Airbus’ technology DNA in a highly dynamic environment;–– X-Labs: providing test, conceptual design, simulation andrapid prototyping capabilities for the R&T portfolio and theEngineering Centres, particularly addressing capabilities that
do not otherwise exist within the Company or though external
ecosystems (e.g. electrification). X-Labs also allows for external
access to these facilities;–– Acubed: delivering research and technological innovation at
the intersection of software and hardware, specifically in AI, bigdata, software development, simulation and quantum. Acubed
acts as a bridge connecting Airbus and Silicon Valley, providing
intelligence insights and leveraging the unique expertise thatis accessible through this connection;–– Airbus China R&D and Innovation Centre: accelerating “local
for local” innovation by leveraging the local sustainability anddigital innovation ecosystem to support local business growthand support the Company’s future competitiveness in China;–– Airbus InnovationX | Scale: bringing together corporate
innovation, global technology scouting, start-up engagement
and company building activities;–– Airbus India Innovation Centre: building disruptive products
for all three businesses by leveraging the strong engineeringand digital competencies within Airbus India while alsocollaborating with the external innovation ecosystem in the
country.
The Company’s three businesses each have their own R&T
function, defining and delivering specific projects. These R&T
functions primarily perform planning and technical arbitration
within their perimeters, and in order to foster continuity acrossthe Company they are accountable to Technology, Divisional
Engineering and Product Strategy. In order to maximise theeffectiveness of the Company’s R&T activities, the businesses
leverage the external ecosystem, reaching across the portfolio
of projects for funding opportunities and to engage with global

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partnerships, research institutes and universities. This approach
fosters efficient R&T portfolio execution, and is further enabled
by new ways of working, such as AGILE methodology andminimum viable product demonstration strategy, which enhance
adaptability and efficiency. The R&T teams seek to securecontinuous improvement in their business’ competitivenessand the ability to develop new business by establishing anddriving the Company’s R&T ambitions. Across the Company,
specific priority is given to technologies for sustainable next
generation aircraft, bringing together product, production systemand services.
Fast-track roadmap owners serve as principal advisors to the CTO
on technical vision and roadmaps for their particular technology
areas. Fast-track roadmaps ensure coherency of activities within
the portfolio and they foster the rapid advancement of strategic
priorities across the businesses. Current fast-track roadmaps
cover:–– electrification;–– industrial systems and manufacturing;–– connectivity;–– autonomy;–– materials;–– artificial intelligence (AI).
To help safeguard the benefits created for the Company throughR&T, its intellectual property is protected, secured and defended
through a central intellectual property function responsible forpatent applications, portfolio investigations and portfolio defence.

Key Progress in 2023
Central research and technology (“CRT”)
CRT pioneers the future of aerospace by exploring and delivering
ambitious new technologies which have the highest potential
for making a positive impact on Airbus’ future products andservices. CRT operates between and with the Company’s central
and global research and technology capabilities, pursuing two
main objectives:–– be a technical trailblazer: explore and deliver relevant newtechnologies, as well as de-risk and create new opportunities;–– prepare the skills that Airbus will require in the future: developinternal capabilities in strategic, emerging technology fields
and provide expertise to internal “customers” for technicalsupport and decision-making.
In 2023, CRT ran more than 40 projects concurrently acrossits domains. Highlights from these activities are listed below.
Materials technologies: 2023 has seen significant technicaladvancement in the fields of materials sustainability andcircularity, materials informatics, functional and high-performancematerials (towards overall sustainability targets) and productmission performance and competitiveness. In particular, thearea of materials informatics is gaining increasing relevance forall strategic drivers in materials (e.g. sustainability, materials for
decarbonisation). The scope of materials technologies ranges
from organic to inorganic materials, and includes ceramics andsurface technologies.
Electrification technology: During 2023, the team has madesignificant progress on several aspects of electrification andelectric propulsion technologies. For example, extensive
investigations have been carried out on making hydrogen1. Information on the Company’s Activities
1.3 Other corporate activities

systems resistant to severe electromagnetic and electric
environments such as lightning strikes and short circuit current.
The project established a full methodology relying on modellingand validation tests to express requirements for the design ofhydrogen systems. Additional progress related to high voltage
and high current technologies was achieved by analysing
physical phenomena (e.g. partial discharges, space charges)
at the origin of cable connector ageing and failure. Two conceptsof high voltage connectors to be tested were proposed.
Communication technologies: The team has been trailblazing
groundbreaking communication technologies on the hardware
and software side for Airbus’ future flying platforms. The next
generation of mobile communication standard 6G (with features
like joint communication and sensing) has undergone analysis
and demonstration projects are being prepared. Advanced
optical communication is being looked at as it is expected toenable very high data rate communications to and from aircraft,while novel implementations of AI algorithms on embedded
systems are being investigated for safety critical applications.
In the area of quantum communications, major steps wereachieved in the field of free-space links, entanglement sourcesand quantum networks. In addition, new approaches to securecommunication networks on the meta-data level are being
investigated.
Artificial intelligence: On the topic of developing “trustworthy”
AI, the most impactful outcome was providing uncertainty
quantification of neural networks outputs; this allows one toknow if the answer provided by an AI model can be trusted.
This work is currently integrated in the Certifiable and Embedded
AI plateau, which is aimed at de-risking the use of AI for safetycritical applications. Work on the formal verification of neuralnetworks and explainability continues. The team has also
worked with manufacturing to optimise operations and logistics,
as well as exploring how to adapt robots with AI to operatespatially in the context of the plant floor. Also in this context, ademonstrator to introduce AI in qualified industrial processes
was developed. Finally, the speech-to-text models developedby the team are being used inside the company for Air Traffic
Control speech transcription.
Virtual product engineering: The team has developed thefirst element of a tool for monitoring cabin crew fatigue, anda demonstration version was integrated into a larger cabindemonstrator. Results of advanced model-based systems
engineering technology investigations, which will support
co-development of product and industrial systems, weresuccessfully completed and have been industrialised in the
Digital Design, Manufacturing and Services (DDMS) tools
ecosystem. To improve the performance of simulations, theteam launched a new project on the introduction of AI techniques
at various modelling levels in order to complement traditional
computational approaches. For example, it will speed up thesimulations without degrading the accuracy of the results byreplacing heavy (i.e. complex, multi-step) solvers with an AI
model. Finally, the collaboration between research entities inFrance: CRT, Inria (Institut national de recherche en sciences
et technologies du numérique) and Cerfacs (Centre Européen
de Recherche et de Formation Avancée en Calcul Scientifique),developing a project to enhance key capabilities for the next
generation of modelling and simulation, delivered its first results
and proposed a clear roadmap for the next three years.

Quantum technology: Implications of quantum technologies
for aerospace and defence are extensive and include important
applications in the fields of computing, communication, andsensing. The objective is to explore this emerging technology
for the Company and to prepare Airbus for the early adoptionof its portfolio. In 2023, Airbus collaborated with BMW and
Quantinuum and demonstrated for the first time the modellingof chemical reactions in fuel cells with a quantum computer.
Quantum-enhanced navigation projects have been initiated,aiming to explore the potential of quantum technologies
to achieve safe navigation in GPS-denied areas. At the endof 2023, Airbus and BMW launched a common quantum
computing challenge, inviting the global quantum community
to solve pressing mobility applications with relevance for boththe aviation and automotive sector. The challenge runs underthe motto “The Quantum Mobility Quest” and is hosted by “The
Quantum Insider” and supported by “Amazon Web Services”.
BlueSky research: Explores, validates and pushes early
upstream technologies, which are new to Airbus, of strategic
nature, high risk and high reward, that will push the boundaries
of aerospace and will lead to high business and societal impact.
This activity is driven by five clusters: Future Energies (new ways
to generate, convey and manage energy), Future Transportation(novel ways to transport people, goods and data), Future Society(design for societal change), Bioconvergence (frontiers ofhumans and machines), and Future Industry (new way to build,produce and deliver). Key concepts that have been explored thisyear are Disruptive Energies, Metaverse up- and downstream,
Human Enhancement technologies, and Project 42, a modelof societal reaction to future Airbus products.

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 boost, evaluate,
mature and validate potential new products and services that
embody radical technological breakthroughs.
In 2023 UpNext explored multiple technologies across all
businesses of the Company, from Helicopters to Defence andSpace and the Commercial Aircraft business. At the Le Bourget
Paris Air Show a new demonstrator “HyPower” was revealed,
which focuses on delivering hydrogen-based energy for nonpropulsive purposes on an A330 testbed.
Throughout the year, UpNext concluded multiple demonstrations
such as:Dragonfly: A demonstrator that experimented with new pilot
operations both on ground and inflight to reduce pilot workload
and ensure safe return to airport.
VERTEX: Could a helicopter be flown with just a tablet?
This helicopter demonstration leveraged fly-by-wire capabilities
with an in-house Human-Machine Interface that enabled theflight of an H130 helicopter with solely a tablet and humanfriendly commands.
ASCEND: The exploration of potential applicability ofsuperconductivity and cryogenic cooling on a powertrain foraviation was completed in November 2023, with the power-onof a newly designed motor. First announced in March 2021, injust three years the viability of this technology was validatedwith design, manufacturing and testing all achieved.

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Blue Condor: A modified glider at the centre of Airbus UpNext’s
hydrogen contrail-studying experiment, Blue Condor, made its
first hydrogen-powered flight in the United States. The flight
was the company’s first ever to use hydrogen as the sole fuelsource, and it kicked off a test campaign that will conclude ina contrail-measuring mission scheduled for early 2024.
Additionally, during the year, Airbus performed several flighttest campaigns on its defence demonstrator Auto’Mate.
This demonstrator serves to develop the future Autonomous
Formation Flight and Autonomous Air-to-Air refuelling (A4R)
capabilities. With new flight control laws that enabled theclose formation flight of multiple DT25 aircraft, with threephysical drones and two virtually simulated drones positioning
autonomously at various positions around the A310 MRTT
tanker aircraft.
2023 also saw the first flight of eXtra Performance Wing
demonstrators flight test bed aircraft, a Cessna Citation VII
business jet that is able to fly in representative flight conditions ofa single aisle aircraft to accelerate and validate technologies thatwill improve and optimise wing aerodynamics and performancefor any future aircraft. The applications of the eXtra Performance
Wing – compatible with any propulsion solution and aircraft
configuration – would reduce CO2 emissions, thus contributing
significantly to Airbus’ decarbonisation roadmap.

AcubedSituated in Silicon Valley, an epicentre of tech talent andinvestment, Acubed is a fast-paced machine that develops
and delivers technological breakthroughs at the intersectionof software and hardware. Acubed’s mission is to accelerate
the digital transformation of the aerospace industry and build
the future of flight now. In operation since 2015, Acubed delivers
valuable digital technologies and solutions to Airbus, leveraging
strong AI, software and simulation capabilities synonymous with
Silicon Valley’s strengths. Acubed’s agile, highly collaborativemodel means it can inject lasting value and expertise into Airbus
while keeping a finger on the pulse of emerging technologies
that have the power to transform the aviation industry.
Acubed’s current areas of exploration and maturation are closelyaligned to Airbus’ strategic priorities and aim to help Airbus
secure and maintain leading positions across nascent andestablished aerospace markets. Beyond its current portfolio,
Acubed continues to explore new areas of research where it
can develop additional value for Airbus and the industry.
AI and autonomy. Acubed’s Wayfinder team is developing
certifiable autonomous flight and machine learning solutions
to help Airbus bring about a significant increase in safety andefficiency in the next generation of commercial aircraft. Theirteam of experts is working hand-in-hand with European teams
to scale Airbus’ capacity to develop computer vision-based
autonomous systems and data-driven development to meet
Airbus’ autonomy goals.
Digital design and manufacturing. The Advanced Digital
Design and Manufacturing (“ADAM”) team seeks to transformthe aerospace industry through the application of digital
innovation across design and manufacturing. Whether adapting
manufacturing processes to gain efficiencies or to cope with
disruptions (for example, supply chain issues), ADAM develops
solutions to reduce lead times, production costs and improve
workflows dynamically, blending its software and hardware
expertise.

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Digital airspace. The Uncrewed Traffic Management (“UTM”)
team’s work aims to enable autonomous and digital air traffic
operations that ensure a safe, fair and efficient airspace. The
team is proceeding through research, simulations, operational
services and industry collaborations. Pioneered out of Acubed,
these activities are an integral part of the global Airbus UTM
programme located across Europe and in Singapore. The teamdelivers a suite of products for an extensible UTM ecosystemthat includes essential core services such as safety briefings,
risk analysis and airspace authorisation, as well as digital
airspace “twin simulation” capabilities.
Quantum technologies. Acubed is accelerating research on
the application of quantum computing and sensing to further
Airbus’ understanding of the potential of these technologies andhow they may be leveraged to improve operational sustainability
and further enable autonomy. To do so, Acubed is actively
partnering with Silicon Valley and other US-based startups to
explore the acceleration of quantum technologies; in particular, it
has equipped its test aircraft with quantum sensing technology
to test and train magnetic navigation systems.

Airbus China R&D and Innovation Centre(“ACRI”)
ACRI includes the Airbus China R&D Centre in Suzhou(leveraging China’s industrial ecosystem to pursue the Airbus
sustainability ambition in China), and Airbus China Innovation
Centre (ACIC) in Shenzhen (accessing a highly advanced
digital innovation ecosystem). Its mission is to embed with
China’s local sustainability and innovation ecosystem including
talents, partners and resources, combined with the Company’s
expertise in aerospace, to discover promising technologies, toidentify solutions enabling new business, and to support local
business growth. The ACRI has the following functions:–– The hydrogen/ZEROe team supports implementing Airbus
hydrogen strategy and ZEROe project ecosystem andinfrastructure in China.
–– The manufacturing innovation team is tasked to explore
industry 4.0 technologies to improve efficiency and safety
within final assembly line activities, as well as to use Airbus’
industrial sites in China for accelerated local testing and global
dissemination. The team is working on computer vision, AGV(automated guided vehicles), 5G industrial connectivity, smart
tooling, remote inspection, green factory and IoT (Internet ofThings). Various applications are handed over to businessand implemented in daily operation.
–– The cabin experience team is providing connected, digitaland sustainable innovation for today’s and future aircraft cabin
and cargo business needs, by enhancing Airbus’ local cabinoffering (local to local) and bringing value for Airbus global
cabin products (local to global).
–– The connectivity team is driving innovative 5G and IoTtechnologies for smart airports and cargo ground operators–– The techlab team is working on electronics/electrification,
power electronics, battery, solar, sensor technologies toprovide innovative technical building blocks working towardfurther advancements.
–– The software development team is working on softwaredevelopment for innovation projects across multiple domains
like advanced manufacturing, smart equipment, cabin,connectivity, etc.
–– The protospace team is a local rapid prototyping function thatprovides fast PoC solutions for all local innovation projects.

1. Information on the Company’s Activities
1.3 Other corporate activities

1

Airbus India Innovation Centre

Airbus InnovationX | Scale

The Airbus India Innovation Centre was inaugurated in
February 2023, making it the third Innovation Centre for Airbus
globally (after Acubed and ACIC). This Innovation Centre, basedin Bangalore, has the unique positioning of being co-locatedand supported by the largest Engineering and Information
Management Centres outside of the core countries for Airbus.
The India Innovation Centre focuses on developing, testingand demonstrating products that are co-developed with thesupport of internal engineering and digital competencies andby also leveraging the robust external Indian tech ecosystem
which includes the “Big Tech” companies, mature startups,
universities and national laboratories and strategic partners.
The India Innovation Centre will also house a Digital Engineering
Protospace which will support the rapid prototyping of digitalengineering concepts (currently being set up and targeting togo live in early 2024).

Airbus InnovationX is tasked to leverage trends and engage
ecosystems to impact current and future aerospace challenges.
With that in mind, Airbus focuses on active innovation delivery
and operates on four different levels, all integrated under one“roof” and with innovation governance at Airbus level.
–– Corporate innovation: To support and guide the internal andexternal innovation ecosystem in its development, with theobjective to increase the impact and visibility of Airbus as aninnovative and sustainable company. Supported by innovation
governance and operations while fostering entrepreneurshipand out-of-the-box thinking within Airbus’ own culture.
–– Global technology Scouting: To explore and promoteworldwide emerging technologies that will impact the Airbus
product portfolio short, mid and long-term, and which
will support Airbus Performance & Sustainability overall
objectives.
–– Start-up engagement: To accelerate the adoption of startup
owned solutions in response to unmet business needs
focusing on strategic Airbus priorities and aiming at projects
with high potential impact. Airbus addresses both process
and product innovation targeting mature solutions comingfrom mature leading startups.
–– Incubator: To anticipate the trends that could disrupt the
future of the aerospace industry and evaluate them to identify
and incubate potential new businesses preparing to beaccelerated within Airbus.

Currently, there are four products that are under development
at the India Innovation Centre, which are sponsored by various
Engineering centres of competence and all three divisions:
IKSANA is a seamless digital solution to report and assess
shortcomings and quality issues in the manufacturing
environment, leveraging computer vision technology. This
product is readily scalable to the in-service support workflow
as well.
The SimulON project intends to make advanced structural
simulations fast, intelligent and credible to enable it to be a meansof compliance and add business value to the organisation. This isdone by augmenting advanced structural simulations by Physics
Informed Neural Network and other AI-based features to reduce
modelling, simulation and analysis time.
Artificial Intelligence for Non Conformities is a solution
based on an AI platform capable of detecting and predicting
quality issues within processes, systems and operations. The
AI system will deploy advanced machine learning techniques toanalyse data, identify patterns and flag instances of deviations
for corrective and preventive measures.
Artificial Intelligence for Model Based System Engineering(MBSE). Systems engineering is a crucial process in the design
and management of complex systems. All the processes
for designing and architecting these systems are formally
documented, and these documents provide system engineers
with the information about requirements, the mission, andoperational, functional, logical and technical analysis. The AI
for MBSE platform will provide a set of AI-based models thatwould help automate or assist in MBSE development. The
following products are being developed as part of the AI for
MBSE platform:–– MBSE design assistant: An LLM (Large Language Model)
will be trained and will build first level information that will be
used by the MBSE designer to build their CAMEO model. Thisis expected to reduce the design time by 50%.
–– Automated SysMl builder: AN LLM would be trained
to process the various input documents, standards,
specifications, change requests and so on and build a fully
functional SysML model that can be used in CAMEO. The
AI model will help reduce the design time by 70% and also
ensure quality and traceability of the models.

T h r e e n ot a b l e s u c c e s s s to r i e s h i g h l i g h t A i r b u sInnovationX / Scale’s effectiveness. Atlas AI, part of Airbus
Ventures portfolio, aids in air travel demand predictions,enhancing sales campaigns and product strategy. Meanwhile,Videns Analytics utilises machine learning and artificial
intelligence to optimise line balancing and productive planning
at Airbus. Finally, Airbus Direct Air Capture (DAC), a venture
targeting new business models on sustainable activities,
aims to commercialise DAC technology for agriculture while
demonstrating a Megaton Carbon Capture system. The Airbus
DAC team was among the three finalists nominated for theGerman Future Prize 2023.

Airbus Commercial Aircraft business
Airbus Commercial’s R&T activity continues to progress along
the axes of safety, decarbonisation, operational efficiency
for customers, Airbus industrial efficiency and resilience andpassengers’ experience. Technologies are delivered to current
programmes, providing options to improve Airbus products
and the industrial system. Technology that will support future
programmes is also investigated and matured; for example,
propulsion, wing, aircraft systems, fuselage, empennage, cabin,industrial, maintenance and engineering capabilities are areas ofinterest. The technologies being developed will help to achieve
Airbus’ future efficiency and resilience, and help to secure theCompany’s future licence to operate. Their development will
require a multi-year effort.
To give some examples of last year’s achievements:–– The Company concluded the test campaign aimed atunderstanding contrails formation when using SAF, feedingclimate science for non-CO2 effects and resulting in publishedarticles in 2023.
–– First flight of the EcoPulse demonstrator, with a distributed
hybrid propulsion system.

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1. Information on the Company’s Activities
1.3 Other corporate activities–– Completed assembly of a high-aspect ratio wingbox structure
and of a folding wingtip specimen for demonstration purposes.
–– Full-scale demonstration of automated assembly capability
on a nose fuselage floor module.
–– Mid-size drilling robot prototype completed for industrial
automation.
Low carbon technologies continue to be a strong focus. As partof its ambition to lead the decarbonisation of the aerospacesector, Airbus will continue to develop hydrogen technologies
around propulsion and liquid hydrogen storage and distribution
systems. Airbus has also engaged in many strategic partnerships
around the world aimed at understanding and exploring thehydrogen ecosystem to support the successful entry into serviceof a hydrogen powered aircraft. This accelerated in 2023 withmajor breakthroughs, such as the demonstration of a 1.2MW
fuel cell power generation, as well as the first flight ever fully
powered with gaseous hydrogen, thanks to the Blue Condor
demonstrator. In parallel, different aircraft configurations will
be explored and developed in 2024, to assess more efficient
ways to integrate these technologies inside the aircraft. The
Company will also continue its efforts to support its customers
to build their route to lower carbon operations, and to growits partnership landscape for critical technology enablers andrelated ecosystems.

Airbus Helicopters
In 2023, the Research and Innovation department actively
continued its activities related to the main demonstrators androadmaps for key technology building blocks. The DisruptiveLabdemonstrator completed its first flight campaign, with more than
40 flight hours. Main sub-systems concepts and the global
aerodynamic architecture were successfully demonstrated
in flight. The next steps will be to address new propulsion
technology and first autonomy functions. After the power-on
end of 2023, the RACER demonstrator (Rapid and Cost Efficient
Rotorcraft) is now in preparation for clearance to perform themilestone first flight, and the main gearbox and engine systems
are installed on the prototype. The first flight is planned forearly 2024.
The H130 FlightLab continued the functional demonstrationsof several new helicopter capacities:–– cable detection with a dedicated hardware set-up;–– HUMS (Health & Usage Monitoring System) and Rotor tracking
balance for light helicopters;–– autonomous navigation set-up based on Vertex, a project todemonstrate a fully automated flight.
–– City Airbus NextGen advanced piloting sleeves.
The “Pioneer lab” (the H145 FlightLab), was unveiled with a first
330° rotor strike alerting system demonstration from the 220°
solution already demonstrated for H130.

Airbus Defence and Space
In 2023, the Company continued its already established R&T
management philosophy of balancing the self-funded R&T
portfolio with a mix of short-term and long-term technologies.
Key technologies that are reaching sufficient maturity to enter
into a programme-driven industrialisation phase are fed into
the Company’s products and solutions. Further, the Company
devotes a significant part of its portfolio to technologies thatare not expected to reach high maturity in the near-term,
but are considered critical to Airbus Defence and Space.

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These are technologies the Company needs to master tomaintain its competitive position in the mid-to-long-term(e.g. Quantum, Photonics and Optical Comms, safety-criticalautonomy and advanced AI applications).
Airbus has identified a set of Top 10 Technologies for Airbus
Defence and Space through an exhaustive exercise withdifferent stakeholders. Assessments included heterogeneous
aspects such as business potential, transversal character for
their adoption, in-house skills and competences, competitive
benchmarking and the par tnerships and cooperation
landscape. The Top 10 technologies are as follows: Artificial
Intelligence, Quantum, Visual-Based Navigation, Prognostic
Health management, Robotics, Optical and Photonics,
Software-defined networking, Computing platforms, 5G/6G
and Low Observability. The Company has produced a
dedicated R&T roadmap and technology deep-dive for eachof these elements.
In terms of technological achievements on the self-funded
R&T portfolio, significant progress has been achieved acrossthe portfolio with direct applicability to elements across all
Airbus Defence and Space Program Lines and across theoverall portfolio of products and solutions. A few examples
are:–– jointly developed with Airbus UpNext, the MRTT programme
flights, the new Autonomous Formation Flight andAutonomous Air-to-Air refuelling (A4R) capabilities, using theA310 flight test bed and multiple DT25 aircraft (see section
on Airbus UpNext regarding Auto’Mate);–– development of an optical feeder on-board terminal forvery high-capacity telecommunication space satellites(TELEO), launched to space as a hosted payload in the
mission BADR8;–– handover to the Program and Chief Engineering Office of thetechnical results allowing the use of additive manufacturing
techniques and Scalmalloy® material for the Eurodrone UAS;–– development and delivery of a set of advanced features
and algorithms for data and imagery utilisation, including
functions such as Aerial Video Line of Sight Refinement,
Open-Source Intelligence (OSINT) Video Indexing &Summarization and ISR Tracking Techniques for complex
surveillance;–– final delivery to the industrial environment of an in-housedeveloped proximity warning system which will enhance
health and safety standards in the shop floor daily operations;–– deployment of an experimental setup consisting of a freespace optical link implementing several Quantum Key
Distribution (QKD) mechanisms which have demonstrated
huge improvements in terms of secure and encrypted
communication.
The Airbus Defence and Space footprint within the homecountries and European eco-systems of Research andTechnology has been reinforced during 2023. Through the
crystallisation of the Company’s Research and Technology
National plans, which have been widely communicated tomajor external stakeholders, including the national MoDs, the
EU Commission, the European Defence Agency (EDA) andEuropean Space Agency (ESA). Out of the European Defence
Funds 2022 call for tender, which was concluded in mid-2023,
Airbus Defence and Space is participating in 10 collaborative
defence research and development projects funded by theEuropean Commission. Out of those 10 projects, Airbus
Defence and Space will lead four of them and contribute to1. Information on the Company’s Activities
1.4 Recent Developments

the other six. The projects that Airbus Defence and Space
leads as coordinator are:–– SESIOP, for the Single European Sky and Interoperability;–– EUCINF, an European Cyber and Information warfare toolbox;–– FASETT, the Future Air System for European Tactical
Transportation–– SPIDER, for Space based Persistent ISR for Defence andEurope Reinforcement.
Regarding the 2023 call for tender, Airbus Defence and Space
recently submitted proposals for projects as participant of 14
different consortia, out of which Airbus Defence and Space
currently will coordinate three:–– ESOCA for Strategic Air Transportation of Outsized Cargo(SATOC);–– MARIOS for Laser Communications (under coordination of
the subsidiary TESAT);–– ARCHER for human language technologies.
All these European Defence Fund projects offer valuable
contributions toward the fulfilment of the Company’s strategy,
and will contribute to strengthening the European defence
industry as well as the military capabilities of the nations.
Looking further, cooperation with academia and universities
has been emphasised with the celebration of three events tofoster technology collaboration with Universities and research
centres, called Collaboration#Tech, in which more than one
hundred universities and research centres had the chance toanswer specific challenges posed by the engineering teams with
their ideas and solutions through projects.
In terms of Intellectual Property, the Airbus Defence and SpaceIP patent portfolio has been strengthened. Looking at specificareas, in line with the Top-10 Technologies mentioned earlier,software-defined elements such as Cybersecurity, Cloud andconnectivity have been strengthened. In 2022, Airbus Defence
and Space saw its innovation spirit recognised with an ADS
inventor nominated for the European Patent Office’s European
Patent Award.
For the Future Combat Air System (FCAS), in addition to the trinational programme, Airbus Defence and Space has launchednational initiatives with German and Spanish Customers todevelop underlying technologies feeding either multinationalor national streams. The common technical building blocks
are related to Connectivity and Communication Networking
as a key capability for collaborative engagements. Beyond trinational and national activities, the Company is linking with theEuropean Defence Fund in the specific areas of Human-MachineInteraction, preparation of standards for Collaborative Warfare
and enhanced, digitalised and secure battlespace information
distribution across all operational domains in the following
projects:–– EPIIC – Enhanced Pilot Interfaces & Interactions for fighter
Cockpit;–– EICACS – European Initiative for Collaborative Air Combat
Standardization;–– MDOC – Military multi-domain operations cloud.
In 2023, Airbus Defence and Space took the role as Co-Chair
within NATO-wide working groups on strategic topics related
to FCAS such as Suppression of Enemy Air Defence (SEAD)
against a modern Integrated Air Defence System (IADS), next
generation of Air Combat platforms and weapons with a focus
on multi-domain operations and interoperability with NATO’s
Joint Intelligence, Surveillance and Reconnaissance (JISR) andAlliance Future Surveillance and Control (AFSC) programmes
and the potential of Advanced and Novel Electronic Attack
Capabilities.

1.4 Recent Developments
On 1 January 2024, the Company implemented a neworganisational set up and top management changes, including
the appointment of a designated Commercial Aircraft leadershipteam, operating under the helm of Christian Scherer, and theappointment of its first Chief Sustainability Officer, Julie Kitcher.
For further information, please refer to “– 4.1.1.3 c) – The Executive
Committee”.

On 28 February 2024, it was announced that Ralph Crosby has
resigned from the Board of Directors with effect on the date of the2024 Annual General Meeting, and that a resolution proposing
Dr. Feiyu Xu as a Non-Executive Director for the remainder of
Mr. Crosby’s term would be presented at the Annual General
Meeting. For further information, please see section “– 4.1.1.1e) – The Board of Directors”, and please also refer to the 2024
Annual General Meeting Information Notice, available throughthe Annual General Meetings link in the Investors section of theCompany’s website.

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1

Chapter 2

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2
Management’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
Material Accounting Considerations, Policies and Estimates
Performance Measures
Results of Operations
Changes in Total Equity (Including Non-Controlling Interests)
Liquidity and Capital Resources

170
171
172
174
178
182
183

2.2

Financial Statements

188

2.3

Statutory Auditor Fees

188

2.4

Information Regarding the Statutory Auditors

189

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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 2023, 2022 and 2021. 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 contain 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 2023
Geopolitical and Macroeconomic Environment. While 2023 saw the stabilisation ofboth inflation and the energy crisis, the Company observed an overall cost increase over its
businesses. On the other hand, the continued high interest rate environment resulted in an
improved interest result. For further information, please refer to “Notes to the IFRS Consolidated
Financial Statements – Note 2: Geopolitical and Macroeconomic Environment”.

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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,and connected services. In commercial aircraft, Airbus offers
modern and fuel-efficient airliners and associated services.
The Company is also a European leader in space systems,
defence and security. In helicopters, the Company provides
civil and military rotorcraft solutions and services worldwide.

The Company’s consolidated revenues amounted to€ 65.4 billion in 2023, of which 82% in the civil sector (compared
to 80% in 2022) and 18% in the defence sector (compared to
20% in 2022). As of 31 December 2023, the Company’s active
headcount was 147,893 employees, an increase compared to2022 (134,267 employees).

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:
AverageYear-end

€/US$

€/£

€/US$

€/£

31 December 2021

1.18270.8596

1.13260.840331 December 2022

1.05300.85281.06670.886931 December 2023

1.08130.86981.10500.86912.1.1.2 Reportable Business Segments
In 2023, the Company operated in three reportable businesssegments which reflect the internal organisational andmanagement structure according to the nature of the products
and services provided.
–– Airbus – Development, manufacturing, marketing and saleof commercial jet passenger aircraft of more than 100 seats,
freighter aircraft and regional turboprop aircraft and aircraftcomponents; aircraft conversion and related services. It also
includes the holding function of the Company and its bankactivities.
–– Airbus Helicopters – Development, manufacturing, marketingand sale of civil and military helicopters; provision of helicopter
related services.
–– Airbus Defence and Space – Military Air Systems
design, development, delivery and support of manned
and unmanned military air systems and their associatedservices. Space Systems design, development, delivery, andsupport of a broad range of civil and defence space systems
for telecommunications, earth observations, navigation,science and orbital systems. Connected Intelligence provisionof services around data processing from platforms, securecommunication and cyber security. In addition, the main joint
ventures design, develop, deliver, and support missile systems
and space launcher systems.
Consolidation effects are reported in the column “Eliminations”.

2.1.1.3 Significant Programme
Developments in 2023
and Other Financial Topics
A320 programme. In 2023, 571 A320 Family aircraft weredelivered, while the production is progressing well towards thepreviously announced rate of 75 aircraft per month in 2026.
In 2023, construction of the second A320 Final Assembly

capacities in Tianjin (China) and Mobile (US) commenced andthe new A320 Family Final Assembly Line in Toulouse delivered
its first aircraft in December. The first customer A321XLR enteredinto the Final Assembly Line in December, with entry-into-service
for the aircraft type expected to take place in Q3 2024.
A350 programme. In 2023, 64 A350 aircraft were delivered andthe Company continues towards a monthly rate of 10 aircraftin 2026.
A330 programme. In 2023, 32 A330 aircraft were delivered
and the Company continues towards a monthly rate of four
aircraft in 2024.
A220 programme. In 2023, 68 A220 aircraft were delivered. The
A220 ramp-up continues towards a monthly production rate of
14 aircraft in 2026, with a focus on the programme’s industrial
maturity and financial performance.
A400M programme. Developments on the A400M programme
resulted in the recognition of revenues of € 1.8 billion in 2023.
As of 31 December 2023, the Company has delivered a total of
123 A400M aircraft including eight aircraft in 2023. The Company
has continued with development activities towards achieving therevised capability roadmap. Retrofit activities are progressing inclose alignment with the customer. In 2023, an additional updateof the contract estimate at completion has been performed anda net charge of € 41 million recorded.
Risks remain on the qualification of technical capabilities andassociated costs, on aircraft operational reliability, on cost
reductions and on securing overall volume as per the revised
baseline.
Space Systems. In 2023, the updated Estimates at Completionof certain space programmes led to a charge of € -0.6 billion. This
includes an updated assessment of assumptions and estimates
related to the remaining revenue and costs to completion andthe progress of the contracts together with the underlying
programmes status.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2.1 Operating and Financial Review

Going concern and associated liquidity measures. As of
31 December 2023, the Company had a net cash positionof € 10.7 billion with a total liquidity of € 33.3 billion, before
deducting short-term financing liabilities. As of 31 December
2023, management considers the Company has sufficient
resources to continue operating for at least 12 months andthat there are no material uncertainties about the Company’s
ability to continue as a going concern. For further information
on liquidity, see “– 2.1.6 Liquidity and Capital Resources”.
Litigation. For information, see “– Information on the Company’s
Activities – 1.1.7 Legal and Arbitration Proceedings” and “Notes
to the IFRS Consolidated Financial Statements – Note 24:
Provisions, Contingent Assets and Contingent Liabilities”.

2.1.1.4 Current Trends
As the basis for its 2024 guidance, the Company assumes
no additional disruptions to the world economy, air traffic,
the supply chain, the Company’s internal operations, and its
ability to deliver products and services. The Company’s 2024
guidance is before M&A.
On that basis, the Company targets to achieve in 2024: around800 commercial aircraft deliveries; EBIT Adjusted between€ 6.5 billion and € 7.0 billion; and Free Cash Flow before
Customer Financing (1) of around € 4.0 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’scontrol are as follows: (a) underlying commercial aircraft
deliveries are based on existing orders. Revenues fromother activities are also based on existing orders and may
include estimates based on relevant market forecasts; (b)no significant interruption in operational performance orprogramme execution; (c) no disruption in or change to thedevelopment of products or other development projects;and (d) no material change to the Company’s existing capital
structure.
The principal assumptions outside the Company’s control are
as follows: (a) no material change in general trading conditions,geopolitical stability, military tensions, 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 fromexternal interruptions; (c) suppliers will meet their delivery
commitments and ensure maturity, availability and in-service
performance; (d) no material change in the ability or willingnessof our customers to meet their contractual obligations,
including payment obligations to the Company; (e) no changes
in the legislative or regulatory environment which could have amaterial effect on the Company; and (f) no adverse outcome
to any material litigation or investigation.
This guidance has been prepared on a basis consistent withthe accounting policies adopted by the Company and iscomparable with the Company’s historical financial information.

2.1.2 Material Accounting Considerations, Policies and Estimates
The Company’s material accounting considerations, policies andestimates are described in the Notes to the IFRS Consolidated
Financial Statements. Please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 4: Material Accounting
Policies”, “– Note 5: Key Estimates and Judgements” and“– Note 6: 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 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 4: Material Accounting Policies” 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 also considering potential impacts fromclimate change, the margin of these aircraft, and the discountrate associated with the aircraft programme. For aircraft that
may need to be remarketed, the impairment of work in progress
and finished aircraft is assessed based on an estimation of
the future selling price and associated remarketing costs.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 4: Material Accounting Policies”, “– Note 3:
Climate impacts”, “– Note 19: Intangible Assets” and “– Note 23:
Inventories”.

(1) The Company has decided to update the definition of the Alternative Performance Measure Free Cash Flow in line with market practices to better reflect the underlying
cash generation performance of its operations. Going forward, Mergers and Acquisitions transactions will be excluded from this definition. This applies from 1 January2024 onwards and the 2024 Guidance is issued on that basis.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2.1 Operating and Financial Review

2.1.2.4 Accounting for Hedged Foreign
Exchange Transactions in
the Financial Statements
In 2023, more than 75% of the Company’s revenues aredenominated in US dollars, with around 60% of such currency
exposure “naturally hedged” by US dollar-denominated costs.
The remainder of costs are incurred primarily in euros, and toa lesser extent, in pounds sterling. Consequently, to the extent
that the Company does not cover its net current and futureexchange rate exposure from the time of a customer order tothe 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, by market changes in the exchange rateof pound sterling against the euro.
The Company uses hedging strategies to manage and mitigate
the impact of exchange rate fluctuations on its profits, including
foreign exchange derivative contracts 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 through speculation on foreign currency exchange rate
movements, the Company uses hedging strategies solely to
mitigate the impact of exchange rate fluctuations on its EBIT(2).
Moreover, to further mitigate the impact of exchange rate
fluctuations on its profits, the Company might enter into a euro
conversion agreement with its customers to fully or partiallyconvert the payment from US dollar into euro based on an agreed
conversion rate. These agreements can be implemented at the
specific request of customers.
For further information on the Company’s coverage strategies
in response to its particular exposures, see “– 2.1.3.3. EBIT by
Business Segment”.

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 4: Material Accounting
Policies”.

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 ofcustomer advances). US dollar-denominated costs are converted
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 such difference, andthe corresponding impact on EBIT, is sensitive to variations in
the number of deliveries and spot rate (€/US$).

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”.
For further information on the significance of sales financing
transactions for the Company, see “– 2.1.6.4 Sales Financing”.

2.1.2.7 Provisions for Onerous Contracts
Provisions for onerous contracts are reviewed and reassessed
regularly. However, future changes in the assumptions usedby the Company or a change in the underlying circumstances
may lead to a revaluation of past provisions for onerous
contracts and have a corresponding positive or negative effecton the Company’s future financial performance. Please referto the “Notes to the IFRS Consolidated Financial Statements– Note 4: Material Accounting Policies – Provisions for onerous
contracts” and “– Note 24: Provisions, Contingent Assets andContingent Liabilities”.

(2) The Company continues to use the term EBIT. EBIT is identical to profit before financial result and income taxes.

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Airbus Annual Report 173

22. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2.1 Operating and Financial Review

2.1.3 Performance Measures
2.1.3.1 Business segments
Airbus(In € million)

2023

2022

2021

Revenue

47,763

41,42836,164

EBIT

3,610

4,800

4,175

7.6%

11.6%

11.5%

in % of revenue

Airbus Helicopters(In € million)

2023

2022

2021

Revenue

7,337

7,048

6,509

EBIT
in % of revenue

717

639

535

9.8%

9.1%

8.2%

Airbus Defence and Space(In € million)

2023

2022

2021

Revenue

11,495

11,25910,186

EBIT
in % of revenue

220

(118)

568

1.9%

(1.0%)

5.6%

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 theaggregate amount of the net transaction price allocated to theunsatisfied and partially unsatisfied performance obligations to

the Company’s customers. Backlog commitments are relative to
the Company’s enforceable contracts with its customers where
it is probable that the consideration will be collected. Contractual
rebates, engine concessions and variable considerations aretaken into account for measurement. Contracts stipulated in acurrency different from the presentation currency are translated
to euro using the spot rate as of 31 December 2023, 2022 and
2021, 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 orderbacklog. In 2024, approximately 9% of the Airbus backlog inunits is expected to be converted into revenues.

ORDER INTAKE
2023

2022

(In € billion) (In percentage)(1)

Airbus2021(In € billion) (In percentage)(1)(In € billion) (In percentage)(1)

162.6

87.0%

59.7

72.2%

40.0

Airbus Helicopters

8.6

4.6%

9.3

11.2%

8.6

13.7%

Airbus Defence and Space

15.7

8.4%

13.7

16.6%

13.7

22.0%

186.9

100%

82.7

100%

62.2

100%

Subtotal segmental order intake
Eliminations

Total

(0.4)

(0.2)

(0.2)

186.5

82.5

62.0

(1) Before “Eliminations”.

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64.3%

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2.1 Operating and Financial Review

ORDER BACKLOG
31 December
2023

2022

(In € billion) (In percentage)(1)

AirbusAirbus Helicopters
Airbus Defence and Space
Subtotal segmental order backlog
Eliminations

Total

2021

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

490.8

88.5%

390.5

86.9%

345.1

86.4%

21.5

3.9%

20.8

4.6%

18.0

4.5%

42.2

7.6%

38.4

8.5%

36.1

9.1%

554.5

100%

449.7

100%

399.2

100%

(0.6)

(0.4)

(0.8)

553.9

449.2

398.4

(1) Before “Eliminations”.

2023 compared to 2022. The € 104.7 billion increase in orderbacklog mainly reflected the Company-wide book-to-bill of well
above one, partly offset by the weakening of the US dollar.

2022 compared to 2021. The € 50.8 billion increase in orderbacklog to € 449.2 billion (2021: € 398.4 billion) mainly reflected
the book-to-bill above one and the strengthening of the US dollar.

Airbus’ backlog increased by € 100.3 billion to € 490.8 billion,
corresponding to a book-to-bill ratio in units of well above one(calculated using units of new net orders, i.e. new net orders inunits divided by deliveries in units) partly offset by the weakeningof the US dollar. Total order backlog at Airbus amounted to
8,598 aircraft at the end of 2023 (as compared to 7,239 aircraftat the end of 2022). Order intake consisted of 2,094 net orders
in 2023 (as compared to 820 in 2022), comprising 1,675 net firm
orders of the A320 Family, 141 A220s, 281 A350s partly offset
by higher cancellations than orders on the A330s.

Airbus’ backlog increased by € 45.3 billion to € 390.4 billion,
corresponding to a book-to-bill ratio in units significantly above
one (calculated using units of new net orders, i.e. new net orders
in units divided by deliveries in units) and the strengtheningof the US dollar. Total order backlog at Airbus amounted to
7,239 aircraft at the end of 2022 (as compared to 7,082 aircraftat the end of 2021). Order intake consisted of 820 net orders
in 2022 (as compared to 507 in 2021), comprising 770 net firm
orders of the A320 Family, 105 A220s, 10 A350s partly offset
by higher cancellations than orders on the A330s.

Airbus Helicopters’ backlog increased by € 0.7 billion to€ 21.5 billion, achieving a book-to-bill ratio above one both inunits and value. Total order backlog amounted to 804 helicoptersat the end of 2023 (as compared to 757 helicopters at the endof 2022). Airbus Helicopters received 393 net orders in 2023 (ascompared to 362 in 2022). Helicopter orders were well spread
across programmes.

Airbus Helicopters’ backlog increased by € 2.8 billion to€ 20.8 billion, achieving a book-to-bill ratio above one both inunits and value. Total order backlog amounted to 757 helicoptersat the end of 2022 (as compared to 739 helicopters at the endof 2021). Airbus Helicopters received 362 net orders in 2022 (ascompared to 414 in 2021). Helicopter orders were well spread
across programmes and included 12 H160s.

Airbus Defence and Space’s backlog increased by € 3.8 billion
to € 42.2 billion and the book-to-bill ratio in value amounted toaround 1.4 with new net orders of € 15.7 billion. Fourth quarter
orders included 16 C295 aircraft for Spain.

Airbus Defence and Space’s backlog increased by € 2.3 billion
to € 38.4 billion and the book-to-bill ratio in value amounted
to around 1.2 with new net orders of € 13.7 billion, including
key orders in Demonstrator Phase 1B of the Future Combat Air
System, the Eurodrone unmanned aerial system and 20 latestgeneration Eurofighters for the Spanish Air Force.

The following table illustrates the proportion of civil and defence backlog at the end of each of the past three years.
31 December
2023

2022

(In € billion)(In percentage)(1)

Civil sector

501.6

Defence sector

52.3

553.9

Total

2021

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

91%

402.0

89%

355.3

89%

9%

47.2

11%

43.1

11%

100%

449.2

100%

398.4

100%

(1) Including “Eliminations”.

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Airbus Annual Report 175

22. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2.1 Operating and Financial Review

2.1.3.3 EBIT by Business Segment(In € million)

2023

2022

2021

Airbus

3,610

4,800

4,175

Airbus Helicopters

717

639

535

Airbus Defence and Space

220

(118)

568

Subtotal segmental EBIT

4,547

5,321

5,278

56

4

64

4,603

5,325

5,342

Eliminations

Total

2023 compared to 2022. The Company’s consolidated EBIT
decreased from € 5.3 billion for 2022 to € 4.6 billion for 2023,
mainly driven by Airbus partly offset by Airbus Helicopters andAirbus Defence and Space.
Airbus’ EBIT decreased from € 4.8 billion for 2022 to € 3.6 billion
for 2023. It is mainly driven by negative foreign exchange impacts(largely related to € -1.4 billion US dollar Working Capital mismatch
impact year-on-year which mainly reflects the phasing impact
arising from the difference between transaction date and deliverydate), higher costs due to hiring linked to the production ramp-up
partly offset by higher deliveries and the release of compliancerelated provisions. In 2022, it included a non-recurring positive
impact related to the re-measurement of past service cost in
the retirement obligations and a release of compliance-related
provisions.
Airbus Helicopters’ EBIT increased from € 639 million for 2022 to€ 717 million for 2023, reflecting the strong performance acrossprogrammes and services. FY 2022 also included net positive
non-recurring elements.
Airbus Defence and Space’s EBIT increased from € -118 million
for 2022 to € 220 million for 2023. It includes € 0.6 billion charges
resulting from the update of Estimates at Completion of certain
Space programmes partially mitigated by the performance ofthe rest of the business. FY 2022 included some non-recurring
elements, notably from the loss of the two Pleiades Neo satellites.
On the A400M programme, an update of the contract “Estimate
at Completion” was performed and an additional charge of€ 0.5 billion recorded in 2022.
2022 compared to 2021. The Company’s consolidated EBIT
remained stable at € 5.3 billion for both 2022 and 2021, mainly
driven by Airbus.
Airbus’ EBIT increased from € 4.2 billion for 2021 to € 4.8 billion
for 2022. This mainly reflects the higher commercial aircraft
deliveries and is supported by some non-recurring elements
related to the re-measurement of past service cost in theretirement obligations, the release of compliance-related
provisions and a positive foreign exchange impact, partly offset
by contract-related provisions and exceptional premium granted
to employees. In 2021, it included the release of COVID-related
provisions, including restructuring provision.
Airbus Helicopters’ EBIT increased from € 535 million for 2021
to € 639 million for 2022, mainly driven by higher services andprogramme execution. It also included the positive impact related
to retirement obligations.

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Airbus Defence and Space’s EBIT decreased from € 568 million
for 2021 to € -118 million for 2022, reflecting the impairment
related to the loss of two Pleiades Neo satellites in December
and to delays on the Ariane 6 launcher, as well as the impact
of updated assumptions in the A400M programme, including
inflation and risks related to the remaining SOC3 contractual
development milestones to be achieved. This was partly offset
by higher volume in Military Aircraft, the ramp-up in Eurodrone
and the positive impact related to retirement obligations.
Foreign currency impact on EBIT. In 2023, more than 75%of the Company’s revenues are denominated in US dollars withapproximately 60% of such currency exposure “naturally hedged”
by US dollar-denominated costs. The remainder of costs are
incurred primarily in euros and to a lesser extent, pounds sterling.
Given the long-term nature of its business cycles (evidenced byits multi-year backlog), the Company covers a significant portionof 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. Geopolitical,
Global Economic and Financial Market Risks – Foreign Currency
Exposure” and “– 2.1.2.5 Foreign Currency Translation”.
In order to do so, the Company primarily uses two mechanisms:–– Financial instruments represented by the hedge portfolio, madeof foreign exchange derivative contracts, which constitutes
the main means of mitigating the impact of exchange rate
fluctuations on Company’s profit.
–– Euro conversion, which can be implemented at the specificrequest of customers. It consists of the conversion of the full or
partial payment from US dollar into euro based on an agreed
conversion rate and is accounted for in the IFRS Consolidated
Financial Statements as a contract in euros.
In addition to the impact that coverage activities have on the
Company’s EBIT, the latter is also affected by the impact ofrevaluation of certain assets and liabilities at the closing rate
and the impact of natural hedging.
Since 2022 and going-forward, the Company has presented its
matured hedge portfolio and euro conversion on a blended basis
and therefore blended rates reflect both the EBIT impact of hedge
rates of the US dollar hedge portfolio and euro conversions.
During 2023, US$ 22.4 billion of forwards matured and euro
conversion realised at an average blended rate of €/US$ 1.20.
During 2022, US$ 20.3 billion of forwards matured and euro
conversion realised at an average blended rate of €/US$ 1.22,
as compared to €/US$ 1.21 in 2021.

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2.1 Operating and Financial Review

2.1.3.4 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)

2023

2022

2021

EBIT

4,603

5,325

5,342

$ working capital mismatch and balance sheet revaluation

1,030

(308)

38

0

(28)

(274)

A400M charge

41

477

212

Compliance costs

50

75

65

Non-current assets disposal(1)

0

0

(122)

A380 programme

M&A impact

0

(4)

0

Restructuring(2)

104

62

(163)

Payments by suppliers

0

0

(234)

Others

10

28

1

5,838

5,627

4,865

EBIT Adjusted(1) Included gain from divestment of one of its sites in France to a 50% joint venture in 2021.
(2) Included Aerostructures transformation costs (€ 0.1 billion) in each of 2023 and 2022, release of restructuring provision (€ 0.2 billion) in 2021.

2.1.3.5 EBIT Adjusted by Business Segment(In € million)

2023

2022

2021

Airbus

4,818

4,600

3,570

Airbus Helicopters

735

639

535

Airbus Defence and Space

229

384

696

5,782

5,623

4,801

56

4

64

5,838

5,627

4,865

Subtotal segmental EBIT Adjusted
Eliminations

Total

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Airbus Annual Report 177

2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 Company’s IFRS Consolidated Income Statements for the past three years:(In € million)

2023

2022

2021

Revenue

65,44658,76352,149

Cost of sales(55,402)(48,192)(42,518)

Gross margin

10,044

10,571

9,631

Selling and administrative expenses(2,521)(2,240)(2,052)

Research and development expenses(3,257)(3,079)(2,746)

Other income

243

471

594

Other expenses

(209)

(590)

(201)

Share of profit from investments accounted for under the equity
method and other income from investments
Profit before finance costs and income taxes
Interest result
Other financial result

303

192

116

4,603

5,325

5,342

(25)

(232)

(246)

191

(18)

(69)

Income taxes(1,156)

(939)

(853)

Profit for the period

3,613

4,136

4,174

Equity owners of the parent (Net income)

3,789

4,247

4,213

Non-controlling interests

(176)

(111)

(39)

Attributable toEarnings per share

€

€

€

Basic

4.80

5.40

5.36

Diluted

4.80

5.39

5.36

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)

2023

2022

2021

Airbus47,763

41,42836,164

Airbus Helicopters

7,337

7,048

6,509

Airbus Defence and Space

11,495

11,25910,186

Subtotal segmental revenue

66,59559,73552,859Eliminations(1,149)

(972)

(710)

65,44658,76352,149

Total

Revenues increased by 11.4%, from € 58.8 billion for 2022 to€ 65.4 billion for 2023. The increase is mainly driven by higher
aircraft deliveries of 735 aircraft (in 2022: 661 aircraft), paired

178 Airbus Annual Report

Universal Registration Document 2023

with higher contributions from Airbus Defence and Space andstrong services business in Airbus Helicopters.

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2.1 Operating and Financial Review

For 2022, revenues increased by 12.7%, from € 52.1 billion for 2021 to € 58.8 billion for 2022. The increase was mainly driven byhigher aircraft deliveries and higher contributions from Airbus Defence and Space and Airbus Helicopters. It also reflected a positive
foreign exchange impact at Airbus.

Revenue by Geographical Areas
2023

2022

(In € billion) (In percentage)(1)

2

2021

(In € billion) (In percentage)(1)(In € billion) (In percentage)(1)Asia/Pacific

18.7

28.6%

15.4

26.2%

16.0

30.6%

Europe

25.7

39.3%

24.3

41.3%

19.5

37.4%

North America

13.8

21.1%

13.5

23.0%

10.5

20.2%

Other countries(2)

7.2

11.0%

5.6

9.5%

6.1

11.8%

65.4

100%

58.8

100%

52.1

100%

Total
(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.
(In units)

2023

2022

2021

A220

68

53

50

A320 Family

571

516

483

A330

32

32

18(2)

A350

64

60

(1)

55

A380

0

0

5

Total

735

661

611

(1) After a reduction of two aircraft previously recorded as sold in December 2021 for which a transfer was not possible due to international sanctions against Russia.
(2) Two A330s delivered on operating lease.

Airbus’ revenues increased by 15.3%, from € 41.4 billion for 2022
to € 47.8 billion for 2023. This reflects higher aircraft deliveries of
735 aircraft (compared to 661 deliveries in 2022).

For 2022, Airbus’ revenues increased by 14.4%, from € 36.2 billion
for 2021 to € 41.4 billion for 2022. This reflected higher deliveriesof 661 aircraft (compared to 611 deliveries in 2021) and a positive
foreign exchange impact.

Airbus Helicopters
The following table presents a breakdown of deliveries of helicopters by product type for the past three years.
(In units)

2023

2022

2021

Light

179

167

159

Medium

132

123

121

Heavy

35

54

58

19

28

27

Tiger

thereof NH90

0

0

0

Total

346

344

338

Airbus Helicopters’ revenues amounted to € 7.3 billion in 2023
(2022: € 7.0 billion). This increase reflects the overall performanceacross programmes and services.

Airbus Helicopters’ revenues amounted to € 7.0 billion in 2022
(2021: € 6.5 billion). This increase reflected growth in services
and a favourable mix in programmes.

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Airbus Annual Report 179

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 aircraft deliveries of Airbus Defence and Space by product type for the past three years.
2023

2022

2021

Light & Medium Aircraft

10

13

9

A330 MRTT (Tanker)

4

5

5

(In units)

A400M

8

10

8

Total

22

28

22

Because most telecom satellites are individually unique, theCompany has concluded that the number of units delivered
annually does not offer a meaningful basis for comparison, so
the Company will no longer provide this figure.
Airbus Defence and Space’s revenues amounted to € 11.5 billion
in 2023 (2022: € 11.3 billion). The increase is mainly driven by
Military Air Systems and Connected Intelligence, offset by some
updated Estimates at Completion of certain Space programmes.
Airbus Defence and Space’s revenues amounted to € 11.3 billion
in 2022 (2021: € 10.2 billion). The increase was mainly driven byhigher volume in Military Aircraft and Eurodrone.

2.1.4.2 Cost of Sales
Cost of sales increased by 14.9% from € 48.2 billion for 2022
to € 55.4 billion for 2023. It mainly reflects the higher deliveries,
higher costs due to hiring in preparation for the production
ramp-up and charges resulting from the update of Estimates atCompletion of certain Space programmes.
For 2022, cost of sales increased by 13.3% from € 42.5 billion
for 2021 to € 48.2 billion for 2022. It mainly reflected the higherdeliveries and additional losses recognised on the A400M
programme of € 0.5 billion.

2.1.4.3 Selling and Administrative
Expenses
For 2023, selling and administrative expenses increased from€ 2.2 billion for 2022 to € 2.5 billion for 2023.
For 2022, selling and administrative expenses increased from€ 2.1 billion for 2021 to € 2.2 billion for 2022.

2.1.4.4 Research and Development
Expenses
Research and development expenses increased by 6.5%,
from € 3.1 billion for 2022 to € 3.3 billion for 2023 mainly due
to ramp-up in activities to prepare the technologies of the
future. Additionally, € 378 million of development cost has been
capitalised mainly linked to Defence and Space and Airbus
programmes. See “– 2.1.2.2 Capitalised Development Costs”.
For 2022, research and development expenses increasedby 14.8%, from € 2.7 billion for 2021 to € 3.1 billion for 2022.
In addition, an amount of € 319 million of development costs
has been capitalised, mainly linked to Airbus programmes.
See “– 2.1.2.2 Capitalised Development Costs”.

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2.1.4.5 Other Income
and Other Expenses
Other income and other expenses typically include gains andlosses on disposals of investments, of fixed assets and income
from rental properties.
Other income and other expenses was € 34 million net comparedto € -119 million net for 2022. In 2022, it included the impact of€ -437 million partly offset by an insurance income of € 200 million
both linked to the launch failure of the two satellites Pléiades
Neo 5 and 6 in December 2022.
For 2022, other income and other expenses was € -119 million
net as compared to € 393 million net for 2021. The decrease
included the impact of € -437 million partly offset by an insuranceincome of € 200 million both linked to the launch failure of thetwo satellites Pléiades Neo 5 and 6 in December 2022. In 2021,
it included a restructuring provision release of € 207 million andthe gain of € 122 million for the divestment of one of its sites toa joint venture.

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 € 303 million in share of profit frominvestments accounted for under the equity method and otherincome from investments as compared to € 192 million for 2022
and € 116 million for 2021, mainly linked to the share of result
from the Company’s main joint ventures.

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 € -1,156 million for 2023 as comparedto € -939 million for 2022, and corresponds to an effective
income tax rate of 24%. The tax expense evolution was mainly
driven by higher net valuation allowances, partially offset by
an impairment reversal linked to a corporate reorganisation inGermany, and lower positive impacts from tax risk updates in2023 as compared to 2022.

The Company recorded a net interest expense of € -25 million, as
compared to € -232 million for 2022 and € -246 million for 2021.

2.1.4.8 Other Financial Result
Other financial result includes the impact from the revaluationof financial instruments, the effect of foreign exchange
valuation of 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 € -18 million for 2022 to€ 191 million for 2023. In 2023, it mainly reflects a positive impact
from the revaluation of certain equity investments.
For 2022, other financial result changed from € -69 million for2021 to € -18 million for 2022. It included a negative impact fromthe revaluation of financial instruments and a positive impact
from the revaluation of certain equity investments.

For 2022, income tax expense was € -939 million as comparedto € -853 million for 2021, and corresponds to an effective
income tax rate of 19%. The higher tax expense was mainly
driven by higher net valuation allowances and lower positive
impacts from tax risk updates in 2022 as compared to 2021.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 17: Income Taxes”.

2.1.4.10 Non-Controlling Interests
For 2023, loss for the period attributable to non-controllinginterests was € -176 million, as compared to loss of € -111 million
for 2022.

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 € 3,789 million for 2023, as comparedto the net income of € 4,247 million for 2022.

2.1.4.12 Earnings per Share
Basic earnings were € 4.80 per share in 2023, as compared to € 5.40 per share in 2022. The denominator used to calculateearnings per share was 788,720,779 shares (2022: 787,080,579), reflecting the weighted average number of shares outstanding
during the year. In 2021, the Company reported basic earnings of € 5.36 per share, based on a denominator of 785,326,074 shares.

Profit for the period attributable to equity owners of the parent(Net income)Weighted average number of ordinary shares

Basic earnings per share

2023

2022

2021

€ 3,789 million€ 4,247 million€ 4,213 million

788,720,779

787,080,579

785,326,074€ 4.80€ 5.40€ 5.36

Diluted earnings were € 4.80 per share in 2023, as compared to € 5.39 per share in 2022. The denominator used to calculate
diluted earnings per share was 789,760,599 (2022: 787,753,485). In 2023, LTIP 2023 plan has been excluded from the calculation
because of its antidilutive effect.
2023

2022

2021

Profit for the period attributable to equity owners of the parent(Net income), adjusted for diluted calculation€ 3,789 million€ 4,247 million€ 4,213 million

Weighted average number of ordinary shares (diluted)

789,760,599

787,753,485

785,761,995€ 4.80€ 5.39€ 5.36

Diluted earnings per share

For further information, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 18: Earnings per Share”.

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22. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2.1 Operating and Financial Review

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 2023 through 31 December 2023.
(In € million)

Balance at 1 January 2023

12,982

Profit for the period

3,613

Other comprehensive income

2,447

thereof foreign currency translation adjustments

1

Capital increase

148

Cash distribution to Airbus SE shareholders / Dividends paid to noncontrolling interests(1,421)Equity transactions (IAS 27)

115

Share-based payment (IFRS 2)

168

Change in treasury shares(322)

Balance at 31 December 2023

17,730The number of shares issued as of 31 December 2023 was 790,459,434. Please refer to the “Airbus SE IFRS Consolidated Financial
Statements – IFRS Consolidated Statements of Changes in Equity for the years ended 31 December 2023 and 2022” 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 2023, the notional amount of the Company’s
portfolio of outstanding cash flow hedges amounted to
US$ 67.1 billion, hedged against the euro and the pound sterling.
The year-end mark to market valuation of this portfolio resulted
in a positive pre-tax accumulated other comprehensive income(“AOCI”) valuation change of € +3.3 billion as of 31 December
2023 compared to 31 December 2022, based on a closing
rate of €/US$ 1.11 as compared to a negative pre-tax AOCI
valuation change of € -3.1 billion as of 31 December 2022
compared to 31 December 2021, based on a closing rate of €/US$ 1.07. For further information on the measurement of the fairvalues of 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 areincluded in other financial assets, while negative pre-tax mark tomarket values of cash flow hedges are included in other financial
liabilities. Year-to-year changes in the mark to market value ofeffective cash flow hedges are recognised as adjustments to
AOCI. These adjustments to AOCI are net of corresponding
changes to deferred tax assets (for cash flow hedges withnegative mark to market valuations) and deferred tax liabilities(for cash flow hedges with positive mark to market valuations).
The following graphic presents the cash flow hedge related
movements in AOCI over the past three years. The mark tomarket of the 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)-4,779
OCI Net Asset-7,882-4,582
1,323

Net Deferred Taxes

2,180
1,276

-3,456Net Equity OCI-5,702-3,30631 December 2021: US$ 1.13

31 December 2022: US$ 1.07

(1) Cash flow hedge in AOCI in total equity (including non-controlling interests).

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31 December 2023: US$ 1.11

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2.1 Operating and Financial Review

As a result of the positive change in the fair market valuation of
the cash flow hedge portfolio in 2023, AOCI amounted to a net
liability of € -4.6 billion for 2023, as compared to a net liability of€ -7.9 billion for 2022. The corresponding € -0.9 billion tax effectled to a net deferred tax asset of € 1.3 billion as of 31 December
2023 as compared to a net deferred tax asset of € 2.2 billion asof 31 December 2022.

2.1.5.2 Foreign Currency Translation
Adjustment Impact on AOCIThe € 1 million currency translation adjustment related impact
on AOCI in 2023 mainly reflects the effect of the variations of
the US dollar and the pound sterling.

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”.

2.1.6 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
the sum of (i) cash and cash equivalents and (ii) securities,
minus (iii) financing liabilities, plus or minus (iiii) interest rate
contracts related to fair value hedges (all as recorded in theConsolidated Statement of Financial Position). Net cash position
is an alternative performance measure and an indicator thatallows the Company to measure its ability to generate sufficientliquidity to invest in its growth and future expansion, honour its
dividend policy and maintain financial flexibility. The net cash
position as of 31 December 2023 was € 10.7 billion (€ 9.4 billion
as of 31 December 2022).
As of 31 December 2023, the total liquidity amounted to€ 33.3 billion and it was secured by the € 25.3 billion gross cash
and the € 8 billion sustainability-linked Revolving SyndicatedCredit Facility signed on 5 July 2022 which cancels and replacesthe € 6 billion Revolving Syndicated Credit Facility signed in 2020.
This facility incorporates an adjustment mechanism that links theapplicable margin of the facility (which can go either up or down) to
the achievement of annual targets for two selected sustainability
key performance indicators related to environmental rating andhealth & safety. The Company can raise further liquidity throughits € 12 billion Euro Medium Term Note programme (of which€ 8 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”. Pleasealso 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”.

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2

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.
The following table sets forth the variation of the Company’s consolidated net cash position over the periods indicated.
(In € million)

2023

2022

2021

Net Cash position at 1 January(1)

9,431

7,740

4,724
4,078

Gross Cash Flow from operations(2)

5,718

5,512

Changes in other operating assets and liabilities (working capital)(3)

1,204

1,421

984

Cash used for investing activities(4)(3,037)(2,609)(1,551)(3,051)(2,464)(1,928)

3,885

4,324

3,511

thereof industrial capital expenditures
Free Cash Flow(5)thereof M&A transactions

(65)

(210)

(32)

Free Cash Flow before M&A(6)

3,950

4,534

3,543

thereof Cash Flow from customer financing (net)
Free Cash Flow before customer financing

(436)

(146)

28

4,321

4,470

3,483

Free Cash Flow before M&A and customer financing

4,386

4,680

3,515

Cash distribution to shareholders / non-controlling interests(1,421)(1,181)0

Contribution to plan assets of pension schemes

(668)

(601)

(533)

Changes in capital and non-controlling interests

146

145

138

Change in treasury shares / share buyback

(334)

(36)

(22)

Change in liability for puttable instruments

138

135

0

Others(7)(451)(1,095)(78)

10,726

9,431

7,740

Net Cash position at 31 December(1)(1) The Company has decided to refine the net cash definition to include interest rate contracts related to fair value hedges which is also reflected in the 2022 balance.
(2) 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 (€ 0 million in 2023, € -44 million in 2022, € 27 million in 2021). 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).
(3) Including customer financing, excluding some perimeter change impacts from changes in consolidation.
(4) Does not reflect change in securities (net investment of € -786 million in 2023, net investment of € -344 million in 2022, net investment of € -1,186 million in 2021), which are classified
as cash and not as investments solely for the purposes of this net cash presentation. Excluding bank activities.
(5) 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 key indicator that reflects the amount of cash flow generated from operations
after cash used in investing activities.
(6) 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 key indicator thatreflects Free Cash Flow excluding those cash flows from the disposal and acquisition of businesses.
(7) Including both fair value and foreign exchange impacts on securities and financing liabilities.

The net cash position as of 31 December 2023 was € 10.7 billion,
a 13.8% increase from 31 December 2022. It includes payments
received in advance from certain customers and payments madeto suppliers in anticipation. 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 € 5.7 billion for2023, which mainly reflects EBIT Adjusted.

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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 € 1.2 billion for 2023, versus a positive
impact of € 1.4 billion for 2022.
In 2023, the positive working capital variation was driven mostly
by contract assets and contract liabilities (€ +2.3 billion) mainly
due to a positive phasing impact reflecting higher advancepayments, trade liabilities (€ +1.4 billion) which reflects the
ramp-up and a net negative impact from payments made to
suppliers in anticipation and trade receivables (€ +0.3 billion).

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2.1 Operating and Financial Review

This was partially offset by an inventory build-up (€ -1.9 billion)
and higher advance payments made to suppliers to support
Airbus’ ramp-up and de-risk the supply chain partially offset
by less finished goods, and other assets and liabilities(€ -0.9 billion).
In 2022, the positive working capital variation was driven mostly
by contract assets and contract liabilities (€ +3.3 billion) mainly
due to a positive phasing impact reflecting higher advancepayments, trade liabilities (€ +3.3 billion) which reflected
the ramp-up and a positive impact from net payments
made to suppliers in anticipation. This was partially offset
by an inventory build-up to support the ramp-up (€ -3.2 billion),other assets and liabilities (€ -1.9 billion) and trade receivables(€ -0.1 billion).
European governments’ refundable advances. As of
31 December 2023, 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 2023 as compared to2022. Please refer to the “Notes to the IFRS Consolidated
Financial Statements – Note 25: Other Financial Assets andOther 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 € -3.0 billion for 2023, to € -2.6 billion for 2022,
and to € -1.6 billion for 2021.
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 € -3.1 billion for2023, to € -2.5 billion for 2022 and to € -1.9 billion for 2021.
M&A transactions. In 2023, the € -0.1 billion figure mostly
relates to the acquisition of Aubert & Duval which is owned
equally by Airbus, Safran and Tikehau Capital.
In 2022, the € -0.2 billion figure mostly related to the acquisitionof 100% of the shares of ZF Luftfahrttechnik GmbH. ZF
Luftfahrttechnik was subsequently renamed Airbus Helicopters
Technik GmbH.
In 2021, there were no significant M&A transactions.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 8: Acquisitions and Disposals”.
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.
Please refer to the “Notes to the IFRS Consolidated Financial
Statements – Note 8: Acquisitions and Disposals”.

Free Cash Flow definition
until 31 December 2023
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
is an alternative performance measure and key indicatorwhich allows the Company to measure the amount of Cash
Flow generated from operations after cash used in investing
activities. As a result of the factors discussed above, Free
Cash Flow amounted to € 3.9 billion for 2023 as compared to€ 4.3 billion for 2022 and € 3.5 billion for 2021.

Free Cash Flow before M&A definition
until 31 December 2023
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 definition until 31 December 2023
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.

Free Cash Flow definition from 1 January 2024
The Company defines Free Cash Flow as the sum of (i) cash
provided by operating activities and (ii) investments in intangible
and fixed assets (net) & dividends paid by companies valued
at equity, minus (iii) contribution to plan assets of pension
schemes, (iv) realised foreign exchange results on treasury
swaps and (v) change in cash from changes in consolidation.
It is an alternative performance measure and key indicatorwhich allows the Company to measure the amount of cash
flow generated by its operations.

Free Cash Flow before Customer Financing
definition from 1 January 2024
Free Cash Flow before Customer Financing refers to Free Cash
Flow adjusted for cash flow related to aircraft financing activities.
It is an alternative performance measure and indicator used by
the Company in its financial guidance.

Cash Distribution to Shareholders /Non‑Controlling Interests
For the fiscal year 2023, the Board of Directors will propose
the payment of a dividend of € 1.80 per share and a special
dividend of € 1.00 per share to the 2024 Annual General Meetingtaking place on 10 April 2024. The proposed payment date is
18 April 2024.

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2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2.1 Operating and Financial Review

For the fiscal year 2022, the Company’s Board of Directors
proposed a cash distribution to shareholders of € 1.80 per shareand cash distribution to shareholders amounted to € -1.4 billion
in 2023.
For the fiscal year 2021, the Company’s Board of Directors
proposed a cash distribution to shareholders of € 1.50 per shareand cash distribution to shareholders amounted to € -1.2 billion
in 2022.

Contribution to Plan Assets of Pension Schemes
The cash outflows of € -0.7 billion, € -0.6 billion and € -0.5 billion
in 2023, 2022 and 2021, respectively, primarily relate tocontributions to the Contractual Trust Arrangements (“CTA”)

in Germany for allocating and generating pension plan assets
in accordance with IAS 19, the German relief fund, as well as
to pension schemes and plan assets in the UK, Canada andto French benefit funds. Please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 31: Post-Employment
Benefits”.

Change in Treasury Shares / Share Buyback
Change in treasury shares amounted to € -334 million for 2023,
to € -36 million for 2022 and to € -22 million for 2021. As of
31 December 2023 and 2022, the Company held 3,037,467 and
647,500 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”.

practice (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.

The Company has a partially automated cross-border anddomestic cash pooling system in all countries with majorgroup presence and whenever country regulations allow such

2.1.6.3 Financing Liabilities
The outstanding balance of the Company’s consolidated financing
liabilities increased from € 12.8 billion as of 31 December 2022 to€ 13.6 billion as of 31 December 2023. The increase is mainly due
to the increase in the value of bonds and financing liabilities to

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Universal Registration Document 2023

joint ventures. For further information, please refer to the “Notes
to the IFRS Consolidated Financial Statements – Note 36.3: Net
Cash – Financing Liabilities”.

2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2.1 Operating and Financial Review

2.1.6.4 Sales Financing
The Company favours cash sales and encourages independent
financing by customers, in order to avoid retaining credit or asset
risk in relation to delivered products. However, in order to support
product sales, primarily at Airbus, the Company may, on a caseby-case basis, agree to participate in the financing of customers.
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 2023 in US$ million

31 December 2022

332

Additions

Disposals

Amortisation

133

-105

-15

31 December 2023

Over the last three years (2021 to 2023), the average numberof aircraft delivered in respect of which direct financing support
has been provided by Airbus amounted to approximately 1% of
the average number of deliveries over the same period.

345

For further information, please refer to the “Notes to the IFRS
Consolidated Financial Statements – Note 27: Sales Financing
Transactions”.

Airbus Helicopters’ gross customer financing exposure amounted
to € 19 million as of 31 December 2023.

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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
The Company’s IFRS Consolidated Financial Statements forthe year ended 31 December 2023, together with the related
notes, appendices and independent auditors’ report, shall bedeemed to be incorporated in and form part of this Universal
Registration Document.
In addition, the following documents shall be deemed to beincorporated by reference in and form part of this Universal
Registration Document:

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 above-mentioned Financial Statements are also available
in English for inspection at the Chamber of Commerce of The
Hague.

–– The IFRS Consolidated Financial Statements for the year
ended 31 December 2022, 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 4 April 2023 without prior approval and filed in
English with the Chamber of Commerce of The Hague.
–– The IFRS Consolidated Financial Statements for the year
ended 31 December 2021, 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 6 April 2022 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”.

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

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 2016

10 April 2024

(1) A resolution will be submitted to the Annual General Meeting of Shareholders in 2024, in order to appoint Ernst & Young Accountants LLP as the Company’s auditors for the 2024
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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Chapter 3

190

Airbus / Annual Report – Universal Registration Document 2022

3
General Descriptionof the Company
and its Share Capital
3.1
3.1.1

192

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 Commercial Name: Airbus
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

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

199
199
199
199
200
200

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 2023
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

201
201
202
205
205
205
205
207

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

209
209
209
209
209

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192
192
192
193
194
194
194
194
194
195
196
197
198

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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 Office Commercial Name: Airbus

Statutory Name: Airbus SE

Seat (statutaire zetel): Amsterdam

Registered Office: Mendelweg 30, 2333 CS Leiden,
The Netherlands

Tel: +31 (0)71 5245 600

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 a certain period of time (with certain RegulatedInformation being required to remain publicly available for atleast ten years, and certain other Regulated Information for atleast five 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
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.
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.

prejudice 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.

Dutch Regulations
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.
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.

Spanish Regulations

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 Spain the same information as that provided
abroad.

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.

3.1.3.2 Ongoing Disclosure Obligations

German Regulations

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 to

3.1.4

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.

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 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

In Spain, the Articles of Association are available at the CNMV
and at the Madrid office of the Company (Avenida de John
Lennon s/n, 28906 Getafe, Madrid, Spain, Tel.: +34 91 443
30 00).
The documents incorporated by reference into this Universal
Registration Document are available on www.airbus.com.

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.‌a irbus.com), which will be directly andpermanently accessible until the shareholders’ meeting. The
Company must comply with the statutory rules providing fora 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.
Shareholders holding their Company shares through Euroclear
France SA 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 SA 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 SA) in the register of the Company. However, only sharesregistered in the name of Euroclear France SA 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 SA or to any
other person designated for this purpose, as specified in therelevant 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 notice to the AFM through its online
portal, 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 gross short position in the Company meets, exceeds orfalls below one or several of the above-mentioned thresholds
due to a change in the Company’s outstanding capital, or invoting rights attached to 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 theCompany. Pursuant to the Articles of Association, shareholders
must notify the Company when meeting or crossing thethresholds above. The Articles of Association also containdisclosure obligations for shareholders that apply when theirinterests in the Company reach or cross certain thresholds.
Among other things, 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 or at the end of the quarter if the change of its
outstanding share capital or voting rights is smaller than 1%.
Additional disclosure and/or publication obligations apply underEuropean regulations for net short positions in respect of theCompany.
The disclosures are published by the AFM on its website(www.afm.nl).
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 an economic offence punishable
by criminal and administrative penalties as well as civil law
penalties, including the suspension of voting rights. Failure tocomply with a notification under the Articles of Association canlead to a suspension 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 bythem or their entity, 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 theBoard 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 bond. Equally, the term “voting rights” also includes actual or contingent rights to voting rights(e.g., embedded in call options, warrants or convertible bond).

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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.
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
to a 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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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
and will in a mechanical manner vote to reflect the outcomeof the votes cast (or not cast) by the other shareholders,
and the foundation will distribute any dividends or other
distributions it receives from the Company to the holders ofdepositary 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 toreflect the Company’s further normalised governance going
forward, aiming at a substantial increase of the free float andto safeguard the interests of the Company and its stakeholders(including all its shareholders), by limiting the possibilities ofinfluence above the level of the Mandatory Disposal Thresholdor takeovers other than a public takeover offer resulting in aminimum acceptance of 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 in concert(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 areprovided under Dutch law, the requirement to make a public
offer does not apply to persons, who at the time the Takeover
Act came into force, already held – individually or acting inconcert – 30% or more of the voting rights in the Company.
In the case of such a concert, a new Member of the concert
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 2023, the Company’s issued share capital amounted to € 790,459,434, consisting of 790,459,434 fully
paid-up shares of a nominal value of € 1 each.

3

3.2.2 Authorised Share Capital
As of 31 December 2023, 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 conditions ofshare 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 the Company, 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 Relationship withprincipal 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‑third
majority of votes cast during the shareholders’ meeting, in thecase where less than half of the capital issued is present or
represented at said meeting.

2. funding Airbus SE and any of its subsidiaries, provided thatsuch powers shall be limited to 0.3% of Airbus SE’s authorised
share capital.
Such powers have been granted for a period expiring at the
AGM to be held in 2024, and shall not extend to issuing sharesor granting rights to subscribe for shares if: (i) there is nopreferential subscription right (by virtue of Dutch law, or because
it has been excluded by means of a resolution of the competent
corporate body) and (ii) it concerns an aggregate issue price inexcess of € 500 million per share issuance.
At the AGM held on 19 April 2023, the Board of Directors was
authorised for a period of 18 months from the date of such AGM
to repurchase shares of Airbus SE, by any means, including
derivative products, on any stock exchange or otherwise, aslong as, upon such repurchase, Airbus SE would not hold morethan 10% of Airbus SE’s issued share capital, and at a priceper share not less than the nominal value, and not more thanthe higher of the price of the 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.

However, the Articles of Association of Airbus SE (“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 the aggregate issue
price is in excess of € 500 million, per share issuance, and nopreferential subscription rights exist in respect thereof (by virtue ofDutch law, or because they have been excluded by the competent
corporate body). The same limitation applies if the shareholders’meeting wishes to designate the Board of Directors to havethe authority to resolve on such share issuance or granting ofrights. These limitations in the Articles of Association can only bechanged by the shareholders’ meeting with a 75% voting majority.

The shareholders’ meeting may reduce the issued share capitalby cancellation of shares or by reducing the nominal valueof the shares by means of an amendment to the Articles of
Association. The cancellation of shares requires the approval ofa 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 the meeting; the reduction of
nominal value by means of an amendment to the Articles of
Association requires the approval of a two-thirds majority ofthe votes cast during the shareholders’ meeting (unless theamendment to the Articles of Association also concerns anamendment which under the Articles of Association requires
a 75% voting majority).

Pursuant to the shareholders’ resolutions adopted at the Annual
General Meeting (“AGM”) held on 19 April 2023, the powers to
issue shares and to grant rights to subscribe for shares andto limit or exclude preferential subscription rights for existing
shareholders, have been delegated to the Board of Directors
for the purpose of:At the AGM held on 19 April 2023, the Board of Directors andthe Chief Executive Officer (“CEO”) were authorised, withpowers of substitution, to implement a cancellation of shares
held or repurchased by Airbus SE, 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
0.18% of Airbus SE’s authorised share capital; andUniversal Registration Document 2023

Airbus Annual Report 199

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 (please refer to “Notes tothe IFRS Consolidated Financial Statements – Note 36.3: Net Cash – Financing Liabilities”).

3.2.5 Changes in the Issued Share Capital

Date

Nature of Transaction

Nominal
Numbervalue of sharesperissued /share cancelled

Total number
of issued
shares after(1)
Premiumtransaction

Total issued
capital after
transaction

Cancellation of shares upon authorisation grantedby the Extraordinary General Meeting held on
20 June 2013 27 March 2013

€ 1 47,648,691-

779,719,254€ 779,719,254

29 July 2013

€1

2,113,245 € 57,580,650

781,832,499€ 781,832,499

Cancellation of shares upon authorisation granted
27 September by the Extraordinary General Meeting held on
2013
27 March 2013

€1

3,099,657-

778,732,842€ 778,732,842

Cancellation of shares upon authorisation granted
27 September by the Annual Shareholders’ Meeting held on
2013
29 May 2013-

776,283,958 € 776,283,958

Issue of shares for the purpose of an employee offering€12,448,884

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 grantedby 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 purpose of 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 purpose of an employee
offering€1

1,643,193-

774,556,062€ 774,556,062

In 2017

Issues of shares for the purpose of an employee
offering€1

1,643,193-

774,556,062€ 774,556,062

In 2018

Issues of shares for the purpose of an employee
offering€1

1,811,819-

776,367,881€ 776,367,881

In 2019

Issues of shares for the purpose of 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 purpose of an employee offering€1

976,155-

784,149,270€ 784,149,270

In 2021

Issue of shares for the purpose of an employee offering€1

1,934,420-

786,083,690 € 786,083,690

In 2022

Issue of shares for the purpose of an employee offering€12,121,318-

788,205,008 € 788,205,008

In 2023

Issue of shares for the purpose of an employee offering€12,254,426-

790,459,434 € 790,459,434(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 2023, a total number of 2,254,426 new shares were issued, all of which were issued in the framework of the 2023
Employee Share Ownership Plan (“ESOP”) and its sub-plan SIP.
During 2023 (i) Airbus SE repurchased 2,510,000 shares and (ii) none of the treasury shares were cancelled. As of 31 December
2023, Airbus SE held 3,037,467 treasury shares.

200 Airbus Annual Report

Universal Registration Document 2023

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 2023
As of 31 December 2023, the French State held 10.86% of theoutstanding Company shares through Sogepa, the German
State held 10.84% through GZBV, a subsidiary of Kreditanstalt
für Wiederaufbau (“KfW”), a public law institution serving
domestic and international policy objectives of the Governmentof the Federal Republic of Germany, and the Spanish
State held 4.09% through SEPI. The public (including theCompany’s employees) and the Company held, respectively,
73.82% and 0.38% of the Company’s share capital.

The diagram below shows the ownership structure of the Company as of 31 December 2023 (% of capital and of voting rights(in parentheses)). See “– Corporate Governance – 4.3.3 Long-Term Incentive Plans”.
Ownership Structure of Airbus SE as of 31 December 2023
FRENCHSTATEGERMANSTATE

SPANISHSTATEOTHER GERMAN
PUBLIC ENTITIES

15.69%PUBLIC

KfW

84.31%

SOGEPASEPIGZBV(2)

10.86%(10.90%)

4.09%(4.11%)

10.84%(10.88%)74.21%(1)(74.11%)

Share subject to Shareholders’ Agreement

AIRBUS SE(1) Including shares held by the Company itself (0.38%).
(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 exceeding the below-mentioned thresholds,
as per 22 March 2024:–– BlackRock Inc. owns 3.35% (0.34% indirect potential and
3.02% indirect real) and 4.01% (0.37% indirect potential and
3.64% indirect real) voting rights;–– Capital Research and Management Company owns 9.90%(0.27% indirect potential and 9.63% direct real) of the voting
rights;–– The Goldman Sachs Group, Inc. owns 3.28% and 3.28%
voting rights (3.01% indirect potential and 0.26% indirectreal); and–– TCI Fund Management Ltd. owns 3.02% and 3.02% the voting
rights).

Universal Registration Document 2023

Airbus Annual Report 201

3

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 Universal
Registration Document, has a capital or voting interest in the
Company of 3% or more. For further details, please refer to thewebsite of the AFM at: www.afm.nl

As of 31 December 2023, the Company held, directly or indirectly
through another company in which the Company holds directly or
indirectly more than 50% of the share capital, 3,037,467 of its own
shares, equal to 0.38% 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”.
As of 31 December 2023, 2.34% of the share capital (and voting
rights) was held by the Company’s employees (active or inactive
who participated at least once to an Airbus shares based plan)vs 2.13% as of 31 December 2022.

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.

Individual Grandfathering Rights

3.3.2.1 Corporate Governance
Arrangements

Loss of Individual Grandfathering Rights

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 orin concert with others. See “– 3.1.11 Disclosure of Holdings”
and “– 3.1.12 Mandatory Disposal” above and “– Corporate
Governance – 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.

202 Airbus Annual Report

Universal Registration Document 2023

A Party that is individually grandfathered pursuant to Article 16.1.bof the Articles of Association (such Party holding “Individual
Grandfathering Rights”) shall remain individually grandfatheredin accordance with the Articles of Association if the new concert
with respect to the Company (the “Concert”) is subsequently
terminated (for instance by terminating the Shareholders’
Agreement) or if it exits the Concert.

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 and is not based onmaterial and ongoing violations of the Concert 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 Company of
the other principal Member of the Concert together with thoseof its affiliates would for an uninterrupted period of three months
represent less than 3% of the outstanding aggregate voting
rights of the Company, the Grandfathering Rights of the Party
including its affiliates which were no longer entitled to use their
Grandfathering Rights shall from then on revive and Sogepa 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

3. General Description of the Company and its Share Capital
3.3 Shareholdings and Voting Rights

Expert Adjudicators in order to settle any dispute between theParties arising out of or in connection with the post-concert
Grandfathering Agreement.
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.
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.

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 theCompany in accordance with the terms and conditions of
the German State Security Agreement and the French State
Security Agreement (as described below). If, for whateverreason, any person to be appointed as a Director pursuant
to the German State Security Agreement or the French State
Security Agreement is not nominated, the shareholders shalluse 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.
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.
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.
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.

Universal Registration Document 2023

Airbus Annual Report 203

3

3. General Description of the Company and its Share Capital
3.3 Shareholdings and Voting Rights

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.
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 inrespect of one or more Shareholders and/or their affiliates, subject
to the occurrence of certain changes in its or their shareholding
interest in the Company or in its or their shareholders.
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 certain
stakeholders.

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 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 Boardof 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 Board of Directors of the Company) nor (ii) have material
ongoing professional relationships with Airbus SE.
Pursuant to the French State Security Agreement, Airbus SE has
granted to the French state: (a) a veto right, and subsequently
a call option, on the shares of the Airbus SE subsidiary
performing 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 Airbus SE,or (ii) the sale of the shares of such companies carrying out suchactivity is considered, and (b) a right to oppose the transfer ofany such shares.

204 Airbus Annual Report

Universal Registration Document 2023

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 toalso 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.
Pursuant to the German State Security Agreement, Airbus SE
and the German Defence Holding Company have granted to
the German state a pre-emption right to acquire the sensitive
activities, as defined under the German State Security
Agreement. The pre-emption right applies in case the German
Defence Holding Company wishes to sell the sensitive activities
to an entity outside Airbus SE, or outside the German territory, or
the shares of a controlled entity which hosts sensitive activities.
In such a case, the German state may acquire the shares of sucha controlled entity. Furthermore, the German state has the rightto acquire the sensitive activities in case Airbus SE intends toallocate the sensitive activities outside Germany or to give up
the sensitive activities.
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 10.24% 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.

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 2023

Position as of
31 December 2022

Shareholders% ofcapital% ofvotingrightsNumberof shares% ofcapital% ofvotingrightsNumberof shares

SOGEPA

10.86%

10.90%

85,835,477

10.89%

10.89%GZBV (1)10.84%

10.88%

85,709,822

10.87%

10.88%SEPI

Position as of
31 December 2021
% ofcapital% ofvotingrightsNumberof shares

85,835,477

10.92%

10.92%

85,835,477

85,709,822

10.90%

10.91%

85,709,822

4.09%

4.11%

32,330,381

4.10%

4.10%

32,330,381

4.11%

4.11%

32,330,381

Sub-total New
Shareholder Agt.

25.79%

25.89%

203,875,680

25.86%

25.87%

203,875,680

25.93%

25.94%

203,875,680

Public73.83%

74.11%

583,546,287

74.06%

74.05%

583,681,825

74.01%

74.05%

581,973,275

Own share buyback (3)

0.38%

-

3,037,467

0.08%

-

647,500

0.03%-

234,735

Total

100%

100% 790,459,434

100%

100% 788,205,008

100%

(2)

100% 786,083,690(1) KfW & other German public entities.
(2) Including Company employees.
(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 shareholding structure of the Company as of 31 December
2023 is as shown in the diagram in “– 3.3.1 Shareholding
Structure at the end of 2023”.

3.3.5 Persons Exercising Control over the Company
See “– 3.3.1 Shareholding Structure at the end of 2023” 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 31 December 2023, 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.

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206 Airbus Annual Report

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94.67%

Airbus Operations
Limited(UK)

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

Airbus GmbH
(Germany)

Airbus Operations
GmbH(Germany)

5.33 %

Airbus Operations
SAS(France)

Airbus Defence
and Space
Limited(UK)

Ariane Group50%*

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

Airbus Defence
and Space SAS(France)

MBDA(France)50%*

ATR GIE(France)

37.5%*

Computadoras,Redese Ingenieria, S.A.
(Spain)Airbus Defence
and Space, S.A.
(Spain)Airbus Atlantic(France)(The Netherlands)

AIRBUS SE

MBDA Group

Ariane Group

Airbus Helicopters

38.53%

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

Airbus Helicopters
DeutschlandGmbH(Germany)

Airbus Helicopters(France)

Airbus Defence and Space

Airbus Americas,
Inc.
(USA)

45%

Airbus Defence
and Space GmbH
(Germany)

Eibe
FlugzeugwerteGmbH(Germany)

Airbus SAS(France)61.47%

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.

Airbus Canada
LimitedPartnership(France)

75%*

5.27%

94.73%

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 19 April 2023, 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.
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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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 10 April 2024
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: 10 April 2024;–– 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
22 June 2021 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
the Company: 79,045,943 shares, based on an issued sharecapital of 790,459,434 shares as of 14 February 2024,–– 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

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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 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 repurchased in
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 of thelast independent trade and the highest current independent
bid on the trading venues of the regulated market of thecountry in which the purchase is carried out,–– term of the share repurchase programme and othercharacteristics: this share repurchase programme shall bevalid until 10 October 2025 inclusive, i.e. the date of expiry of
the authorisation requested from the AGM of Shareholders
to be held on 10 April 2024.
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 Programmes 2023
In February and November 2023, the Company implemented
share buyback programmes in accordance with the requirementsof the Market Abuse Regulation, and under the authority conferredby Board of Directors on 15 February 2023 and 8 November
2023 (respectively), following the authorisation by the Company’s
Annual General Meeting of shareholders on 19 April 2023.

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)

2020

N/A

€0

2021

21 April 2022

€ 1.502022

27 April 2023

€ 1.80(1) Note: figures take into account the number of shares outstanding at the date of payment.

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%.
The Board of Directors will propose to the Annual General
Meeting the payment to shareholders on 18 April 2024 of adividend of € 1.80 per share (FY 2022: € 1.80), corresponding
to a pay-out ratio of 38%.
The dividend proposal reflects our confidence in future earnings
and cash generation.

In addition, the Board of Directors will propose to the Annual
General Meeting the payment of a special dividend of € 1.00
per share.
The proposed special dividend is underpinned by our strong
free cash flow generation, particularly in the fourth quarter 2023,
the resulting net cash position as well as our commitment toshareholder return.
The record date should be 17 April 2024.

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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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, all European Union Member Statesand other countries.

Conditional Withholding Tax
on Dividends per 2024
As of 1 January 2024, a conditional withholding tax may
apply against the highest corporate tax rate (i.e. 25.8% in2024) on dividends distributed by the Company to an affiliated(gelieerde) entity of it if such entity (i) is considered to be resident(gevestigd) in a jurisdiction that is listed in the annually updated
Dutch Regulation on low-taxing states and non-cooperative
jurisdictions for tax purposes (Regeling laagbelastende staten enniet-coöperatieve rechtsgebieden voor belastingdoeleinden), or(ii) has a permanent establishment located in such jurisdiction towhich the interest is attributable, or (iii) is entitled to the interest
payable for the main purpose or one of the main purposes toavoid taxation for another person, or (iv) is not considered to be
the recipient of the interest in its jurisdiction of residence becausesuch jurisdiction treats another (lower-tier) entity as the recipientof the interest (a hybrid mismatch), or (v) is not treated as resident
anywhere (also a hybrid mismatch), or (vi) is a reverse hybrid
whereby the jurisdiction of residence of a participant that has
a qualifying interest (kwalificerend belang) in the reverse hybrid
treats the reverse hybrid as tax transparent and that participant
would have been taxable based on one (or more) of the items in(i)-(v) above had the interest been due to the participant directly,
all within the meaning of the Withholding Tax Act 2021 (Wetbronbelasting 2021).
If the dividend withholding tax and the conditional dividend
withholding tax will cumulate, the conditional dividend withholding
tax will be reduced by the actual dividend withholding tax levied
resulting in that the aggregate tax rate on dividends may risefrom 15% to the highest corporate tax rate (i.e. 25.8% in 2024).

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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–– 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.

3. General Description of the Company and its Share Capital
3.4 Dividends

Gift or Inheritance Taxes

Other Taxes and Duties

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.

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.

Value Added Tax

Residence

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.

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.

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3

Chapter 4212

Airbus / Annual Report – Universal Registration Document 2022

4
Corporate
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

214
214
238
239
241

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

242
242
258
258

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

259
259
259
260

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213

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 of the Board of Directors
Under the Articles of Association, the Board of Directors (the“Board of Directors”) consists of 12 Directors, who eachretire at the close of the AGM held three years following their
appointment. Under the Board Rules, at least a majority of themembers of the Board of Directors (i.e., 7/12) must be European
Union nationals (“EU”; any reference in the Board Rules to the EU
includes the United Kingdom (“UK”) and its constituent countries,
notwithstanding a withdrawal of the UK from the EU), (including
the Chairman of the Board of Directors) and a majority of suchmajority (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 non-Executive Directors. While
the Board of Directors appoints the CEO, the CEO is required
to be an Executive Director and must be an EU national andresident; therefore it is anticipated that the Board of Directors will
appoint as CEO the person appointed by the shareholders as an
Executive Director. At least nine of the Non-Executive 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, byreference 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 tosuch Director’s relationships with shareholders who own at least
5% of the Company. According to the criteria of the Dutch Codeand the Board Rules, all non-Executive Directors (including the
Chairman) presently qualify as Independent Directors.
The Remuneration, Nomination and Governance Committee(the “RNGC”) of the Board of Directors is responsible forrecommending to the Board the names of candidates to succeed
Board Members after consultation with the Chairman of theBoard of Directors and the CEO.
The Board of Directors, deciding by a simple majority of thevotes cast (a “Simple Majority”), proposes individuals to theshareholders’ meeting of the Company for appointment as
Directors by the shareholders. No shareholder or group ofshareholders, or any other entity, has the right to propose,
nominate or appoint any Directors other than the rights available
to all shareholders under general Dutch corporate law.

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In addition to the membership and composition rules describedabove, the RNGC, in recommending candidates for the Board of
Directors, and the Board of Directors in its resolutions proposed tothe shareholders’ meeting regarding the renewal or appointment
of Directors, are both required to apply the following principles:–– the preference for the best candidate for the position;–– the preference for gender diversity between equal profiles;–– the maintenance of an 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 the 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.
The Board of Directors makes sure it has the required mix
of experience, qualifications, skills and industrial knowledge
necessary to assist the Company in formulating and achieving
its overall strategy, together with the specific expertise required
to fulfil the duties assigned to it and the Board of Directors’committees.
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
to the French State Security Agreement, and to the Germanstate, pursuant to the German State Security Agreement, ineach case as described more fully above. In practice, this meansthat 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 (asdefined above) of the German Defence Holding Company (asdefined above) who have been proposed by the Company andconsented to by the German State.

4. Corporate Governance
4.1 Management and Control

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 Directors should at the time of their
appointment or reappointment not be older than 75 years andensuring that at least one third of Directors’ positions are either
renewed or replaced every year for a term of three years. This
is to avoid large block replacements of Directors at a single
AGM, with the corresponding loss of experience and integration
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) Powers of the members of the Boardof Directors
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 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 below unlessotherwise 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,
Research and Development (“R&D”), Employment, Financeand, as far as applicable, major programmes;–– nominating, suspending or revoking the Chairman of the Boardof Directors and the CEO (Qualified Majority, as defined below);–– approving of all 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 the principal
companies of the Company and of the operational headquartersof the Company (Qualified Majority as defined below);–– 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,in each case for an amount in excess of € 800 million (Qualified
Majority, as defined below);–– 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 as defined below);–– approving matters of shareholder policy, major actions or
major announcements to the capital markets; and–– approving decisions in respect of other measures andbusiness of fundamental significance for the Company, or
which involves an abnormal level of risk.
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. These principles include acting in thebest interests of the Company and its stakeholders, devoting
necessary time and attention to the carrying out of their duties,
and avoiding any and all conflicts of interest.

c) Voting and quorum rules
Most Board of Directors’ decisions can be made by 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 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.

d) Shareholders engagement:
Governance roadshow meetings
The Chairman of the Board and the Lead Independent Director(and Chair of the RNGC) engage with shareholders of theCompany together with the General Counsel and the Head ofInvestor Relations. The Board values an open and transparent
dialogue with shareholders.
The following topics have in particular been discussed: executive
compensation, Board of Directors’ composition including
diversity and overboarding policy as well as the Company’ssustainability vision and strategy.
Exchanging with shareholders on key governance topics provides
the Board of Directors with important insights on shareholders’expectations and allows for a continuous improvement of theCompany’s governance practices.

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44. Corporate Governance
4.1 Management and Controle) The Board of Directors(i) Overview of the Airbus SE Board of Directors’ composition until the 2024 Annual General Meeting
The Board of Directors composition shows a balanced mix of experience, with, in particular, seven members having aerospaceindustry skills, five having manufacturing and production skills, five having sustainability skills, five having geopolitical skills, ninehaving finance skills and four having information or data management skills.
On 28 February 2024, it was announced that Ralph Crosby has resigned from the Board of Directors with effect on the date of
the 2024 Annual General Meeting, and that a resolution proposing Dr. Feiyu Xu as a Non-Executive Director for the remainder of
Mr. Crosby’s term would be presented at the Annual General Meeting. For further information, please refer to the 2024 Annual General
Meeting Information Notice, available through the Annual General Meetings link in the Investors section of the Company’s website.
Board Member
Age(1), Gender, Nationality

StatusSince

TermexpiresPrimary occupation& Other mandates

René
OBERMANN61, M, German

Independent

2018,
previous
re-election
in 20212024(2)Chairman of the Board of Directors of Airbus SE,
Member of the Supervisory Board of IONOSGroup SE and Managing Director of Warburg
Pincus Deutschland GmbHGUILLAUME
FAURY
56, M, French

Executive

2019,
previous
re-election
in 20222025

Chief Executive Office of Airbus SE, Memberof the Board of Directors of AXA SA

VictorCHU
66, M, Chinese /BritishIndependent

2018,
previous
re-election
in 2021Jean-Pierre
CLAMADIEU
65, M, French

Independent

2018,
previous
re-election
in 2021

Ralph D.
CROSBY, Jr.
76, M, American

IndependentMark
DUNKERLEY
60, M, British /AmericanDirector expertiseBoard
attendanceCommittee attendance
Audit RNGC ECSC

6/6 (3)

6/6 (3)

4/4(3)

9/9

6/6 (3)

6/6 (3)

4/4(3)

Chairman and CEO of First Eastern Investment
2024(2) Group and Member of the Board of Nomura
Holdings Inc.

7/9

6/6

2024(2)Chairman of the Board of Engie and Memberof the Board of TE Connectivity

9/9

2013,
previous
re-election
in 2023

2026

Member of the Board of Directorsof Excelitas Holdings, LP

9/9

Independent

2020,
previous
re-election
in 2023

2026

Member of the Board of Directors of Spirit
Airlines Inc. and Volotea Airlines

9/9

6/6

Stephan
GEMKOW
64, M, German

Independent

2020,
previous
re-election
in 2023

2026

Member of the Board of Directors of Amadeus
IT Group and Flughafen Zürich AG

9/9

6/6

Catherine
GUILLOUARD
59, F, French

Independent

2016,
previous
re-election
in 20222025

Member of the Supervisory Board of KPN,
Member of the Board of Directors of
Lottomatica and of Air Liquide and Chairwomanof the Supervisory Board of Ingenico

9/9

AmparoMORALEDA
59, F, Spanish

Independent

2015,
previous
re-election
in 2021

Member of the Board of Directors of A.P. Moller
2024(2) – Maersk A/S, Caixa Bank SA and Vodafone
PLC

9/9

Claudia
NEMAT
55, F, German

Independent

2016,
previous
re-election
in 20222025

Member of the Board of Managementof Deutsche Telekom AG

7/9

Irene
RUMMELHOFF Independent 2022
57, F, Norwegian2025

Executive Vice President of Marketing, Midstream
and Processing and Member of the Corporate
Executive Committee of Equinor ASA

8/9

AntonyWOOD
57, M, British

2026

Member of the Board of Directors of National
Grid plc and of Aero Accessories

9/9

Independent 2022

9/9

Board and Committee meetings in 2023
Average attendance rate in 2023

Chair

GlobalBusinessEngineering& Technology

Manufacturing& Production

AerospaceIndustry

Finance& Audit

Geopolitical
Economics

DefenceIndustry

Information & DataManagement

6/6

4/4

4/4

6/6

4/4

5/6

6/6

2/4

5/6

4/4

3/4
(post AGM)

9

6

95.3%

93.3% 95.8% 90%

Asia

6

4

Sustainability(1) As of 27 March 2024.
(2) Proposed for (re)election in 2024.
(3)	Mr Faury and Mr Obermann are not Committee members, however they are invited to attend all Committee meetings. The average attendance rate of the Committee
meetings in 2023 is calculated without reflecting their attendance.

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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 2023
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 OBERMANN - 61 years old, M, German
CURRICULUM VITAE

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
the Supervisory Board at IONOS Group SE, a leading European web hosting and cloud company.
René Obermann previously served as a member of the Board of various companies including Allianz
Deutschland AG, Spotify, Telenor and ISAT Connect Bidco Limited (the Holding Company for theInmarsat Group).
René worked as CEO of Ziggo BV in The Netherlands in 2014 until the merger with LibertyGlobal’s
UPC in November of that year. Prior to Ziggo, René worked at Deutsche Telekom Group (DT) from1998 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 to 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;--Managing Director of Warburg Pincus Deutschland GmbH;--Deputy Chairman of the Supervisory Board of IONOS Group SE.
FORMER MANDATES FOR THE LAST FIVE YEARS--Member of the Board of Directors of ISAT Connect Bidco Limited (the holding company
for the Inmarsat Group) (until May 2023);--Deputy Chairman of the Supervisory Board of IONOS Group SE (formerly 1&1 IONOS SE)(until 2023);--Chairman of the Supervisory Board of 1&1 IONOS 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).

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GUILLAUME FAURY - 56 years old, M, French
CURRICULUM VITAE

Guillaume Faury was appointed Airbus Chief Executive Officer (CEO) in April 2019 and re-appointed in
2022. Guillaume leads the Company’s Executive Committee. He was previously President of Airbus’commercial aircraft business, a role he had held since February 2018.
Director since 2019,
Re-elected in 2022
Executive

Additionally, Guillaume is a member of the Board of Directors of AXA SA (since April 2021) and is the
President of the Groupement des Industries Françaises de l’Aéronautique et du Spatial (GIFAS), theFrench aerospace industries association (since July 2021). He was appointed President of the Aerospace,
Security and Defence Industries Association of Europe (ASD) in June 2023.
Prior to this, Guillaume was Chief Executive Officer of Airbus Helicopters (2013-2018), where hisachievements included restructuring its manufacturing system and introducing new technologies.
Before that, he enjoyed a 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 amember 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 flighttesting in 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 national
supérieure 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 Board of Directors and of the Executive Committeeof Airbus SE;--President of Airbus SAS;--Member of the Advisory Board of AIRBUS GROUP VENTURES FUND II, LP;--President and Chairman of the Board of Directors of AeroSpace and Defence Industries Associationof Europe (until June 2026);--President of Groupement des Industries Françaises Aéronautiques et Spatiales (GIFAS)(until July 2024);--Member of the Board of Directors of AXA SA.
FORMER MANDATES FOR 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).

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VICTOR CHU - 66 years old, M, Chinese / British
CURRICULUM VITAE

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 Kongin 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. Inlate 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 has led since then as Chairman and CEO. First Eastern specialises in private
equity investments, venture capital investments and investments in the expansion stage of businessdevelopment. Victor Chu was part of the first wave of specialists in the Chinese market. He penetrated
China early and built a lot of relationships at the highest level in the country. Victor Chu also currently
serves as a Member of the Board of Nomura Holdings Inc.
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 ofJapanese budget 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 Asia Investments;--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;--Member of the Board of Nomura Holdings, Inc.
FORMER MANDATES FOR 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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JEAN-PIERRE CLAMADIEU - 65 years old, M, French
CURRICULUM VITAE

Jean-Pierre Clamadieu graduated from Ecole Nationale Supérieure des Mines de Paris before becoming
Chief Engineer of the Corps of Mines. Between 1981–1993, he worked mainly for the French Ministryof lndustry and as Technical Advisor to the Minister of Labor.
Director since 2018,
Re-elected in 2021
Independent

In 1993, Jean-Pierre Clamadieu joined Rhône-Poulenc 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
President of Rhodia’s Chemicals in Latin America, President of Rhodia Eco Services, Senior VicePresident for Rhodia Corporate Purchasing, President of Rhodia Organic Fine Chemicals division andPresident 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 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 ofspecialty 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.
In October 2012, Mr Clamadieu was appointed Member of the Board of Directors at AXA SA. His
mandate ended in April 2023. Since May 2018, Mr Clamadieu also serves as Chairman of the Boardof Directors of ENGIE, a French energy company.
In March 2023, Mr Clamadieu was appointed to the Board of Directors at TE Connectivity. His mandateis renewed on a yearly basis at TE Connectivity’s General Annual Meeting.
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;--Chairman of the Board of Opéra National de Paris.
FORMER MANDATES FOR THE LAST FIVE YEARS--Member of the Board of Directors of AXA SA (until April 2023);--Chairman of the Executive Committee and CEO of Solvay SA (until March 2019);--Member of the Board of Solvay Specialty Chemicals Asia Pacific Pte. Ltd (Singapore)(until March 2019).

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4.1 Management and Control

RALPH DOZIER CROSBY, JR. - 76 years old, M, German
CURRICULUM VITAE

Director since 2013,
Re‑elected in 2023
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
headquartered in 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 hadserved as a Member of the Corporate Policy Council with positions including President of 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 isa graduate of the US Military Academy at West Point, and holds Master’s degrees from Harvard
University, and the University of Geneva, Switzerland. He is the recipient 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 MANDATES FOR THE LAST FIVE YEARS--Member of the Board of Directors (Supervisory Board) of American Electric Power Corporation(until May 2021).

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MARK DUNKERLEY - 60 years old, M, British /American
CURRICULUM VITAE

Mark Dunkerley received his BS in Economics from The London School of Economics and Political
Science and his MS in Air Transport Management from Cranfield University in the UK.
Director since 2020,
Re‑elected in 2023
Independent

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 managementof sales, marketing, customer services, operations, finance, industrial relations, human resources andalliances.
Thereafter, Mr Dunkerley successively served as President and COO of Worldwide Flight Services, aleading multinational ground handling business, as Executive Vice-President at the San Franciscobased 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 the Smithsonian Air & Space Museum.

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4.1 Management and Control

STEPHAN GEMKOW - 64 years old, M, German
CURRICULUM VITAE

Stephan Gemkow studied business administration at the University of Paderborn, Germany, and at
St. Olaf College in Minnesota, USA.
Director since 2020,
Re‑elected in 2023
Independent

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
and Washington, such as Sales Manager, Head of Investors Relations, Head of Corporate Financeand 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 wellas the financial crisis.
In 2012, he took the position of Chief Executive Officer and Chairman of the Board of Directorsof Franz Haniel & Cie, one of the largest family-owned investment holdings, based in Germany,
where he drove the company 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 CD 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 Airbus Defence and Space GmbH;--Member of the Board of Directors of Amadeus IT Group, SA;--Member of the Board of Directors of Flughafen Zürich AG;--Member of the Board of Directors of CD Waelholz GmbH & Co. KG.
FORMER MANDATES FOR THE LAST FIVE YEARS--Member of the Board of Directors of JetBlue Airways Corporation (until March 2020);--CEO and Chairman of the Board of Directors of Franz Haniel & Cie. GmbH (until June 2019);--Chairman of the Supervisory Board of TAKKT AG (until May 2019).

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4.1 Management and Control

CATHERINE GUILLOUARD - 59 years old, F, French
CURRICULUM VITAE

Director since 2016,
Re‑elected in 2022
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-Presidentof Finance in 2005. In September 2007, she joined Eutelsat as Chief Financial Officer and member of
the Group 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 was Deputy Chief Executive Officer of Rexel. From August 2017
to September 2022, Ms. Guillouard served as Chairwoman and Chief Executive Officer of RATP Group,
the third largest urban transportation operator in the world with nearly 16 million daily passengers in
12 countries and 4 continents. Between April 2020 and April 2023 Ms. Guillouard has been a memberof the Supervisory Board of KPN, one of the leading telecommunications and IT providers and market
leader in the Netherlands.
Ms. Guillouard serves as Chairwoman of the Supervisory Board of Ingenico, the global leader inpayments acceptance solutions and services in 37 countries since September 2022 and is a memberof the Board of Directors of Lottomatica, an Italy based gaming and betting company. In May 2023,
Ms. Guillouard was appointed as Member of the Board of Directors of Air Liquide.
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 of the Supervisory Board of Ingenico;--Member of the Board of Directors of Lottomatic;--Member of the Board of Directors of Air Liquide.
FORMER MANDATES FOR THE LAST FIVE YEARS--Member of the Supervisory Board of KPN (until April 2023);--Chairwoman and Chief Executive Officer of RATP Group (until September 2022);--Chairwoman of the Supervisory Board of RATP DEV (until September 2022);--Member of the Supervisory Board of Systra (until July 2021);--Member of the Board of Directors of ENGIE (until May 2019).

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4. Corporate Governance
4.1 Management and ControlMARÍA AMPARO MORALEDA MARTÍNEZ - 59 years old, F, Spanish
CURRICULUM VITAE

Amparo Moraleda graduated as an industrial engineer from the ICAI (Escuela Técnica Superior deIngenieria Industrial) Madrid and holds a PDG from IESE Business School in Madrid.
Director since 2015,
Re-elected in 2021
Independent

Between January 2009 and February 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 toencompass Greece, Israel and Turkey as well. Between 2000 and 2001, she was executive assistantto 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 is a member of the academy of ‘Ciencias Sociales y del Medio Ambiente’ of Andalucía (Spain),member of the Board of Trustees of the MD Anderson Cancer Center in Madrid and member of theBoard of the global alumni association of IESE Business School. In May 2017 she was inducted as amember 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 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 AP Møller-Mærsk A/S;--Member of the Global Advisory Board of Kearney.
FORMER MANDATES FOR THE LAST FIVE YEARS--Member of the Supervisory Board of CSIC (Consejo Superior d’Investigaciones Cientificas)(until December 2022);--Member of the Board of Directors of Solvay SA (until May 2021).

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CLAUDIA NEMAT - 55 years old, F, German
CURRICULUM VITAE

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.
Director since 2016,
Re‑elected in 2022
Independent

Before joining Deutsche Telekom AG, Claudia Nemat spent 17 years working for 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 recovery of large IT projects, and acting as interim CEO.
She focuses on digital transformation, the impact of new technologies like artificial intelligence on
business models, 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 Board of Deutsche Telekom IT GmbH;--Member of the University Council of University of Cologne;--Member of the Executive Committee of Deutsche Gesellschaft für Auswärtige Politik e.V.;--Chairwoman of the Supervisory Board of T-Systems International GmbH;--Chairwoman of the Supervisory Board of Deutsche Telekom Security GmbH.

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IRENE RUMMELHOFF - 57 years old, F, Norwegian
CURRICULUM VITAE

Director since 2022
Independent

Irene Rummelhoff has since 2018 served as Executive Vice-President of Marketing, Midstream andProcessing (MMP) at Equinor ASA (international energy company based in Norway) and been a memberof the company’s Corporate Executive Committee since 2015. With more than 3600 MMP employees
worldwide, she has the responsibility for flow assurance, processing and marketing of all of Equinor’s
products, including marketing of the Norwegian State’s natural gas and crude on the Norwegiancontinental shelf. This responsibility includes development of the company’s hydrogen and carbon
capture and storage (CCS) value chains.
Between 2015 and 2018 she served as the Executive Vice-President for Equinor’s New Energy Solutions
division, reporting to the CEO. In that context she was instrumental in Equinor’s market-leading transition
into the renewable energy field, ahead of all other oil majors. She was tasked with forming a new divisionand driving the development of Equinor’s strategy in renewable and alternative energy solutions, whereby
she pushed for offshore wind and low carbon solutions such as carbon capture and storage and otherrelated technologies, including hydrogen development.
Throughout her career, Ms. Rummelhoff has held a number of management positions in Equinor(previously Statoil), with the majority having an international focus.
In 2014, Ms. Rummelhoff became an appointed member of the Board of Directors of Norsk Hydro(aluminum and renewable energy producer) and was later promoted to Deputy Chair in 2016, a position
she held until the expiry of her term in 2022.
CURRENT MANDATES--Member of the Board of Directors of Airbus SE;--Executive Vice-President of Marketing, Midstream and Processing (MMP) and memberof the Corporate Executive Committee of Equinor ASA.
FORMER MANDATES FOR THE LAST FIVE YEARS--Member of the Board of Directors and Deputy Chair of Norsk Hydro ASA (until May 2022).

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ANTONY WOOD - 57 years old, M, British
CURRICULUM VITAE

Director since2022 (appointed
at December 2022
Board of Directors’
meeting, andapproved atthe 2023 AGM)
Independent

Antony Wood was Chief Executive of Meggitt plc from 2018 to 2022 having joined the company in2016 and stepped down as a Director of ADS Group Limited, the trade association for the Aerospace,
Defence, Security and Space sectors in the UK, in 2023, having served as its President from 2020 to2022. He is also≈a Member of the Board of Directors of National Grid plc, one of the world’s largest
publicly listed utilities focused on transmission and distribution of electricity and gas. In May 2023,
Antony Wood was appointed Member of the Board of Directors of Aero Accessories.
Prior to joining Meggitt, Mr Wood spent 15 years at Rolls-Royce plc where he was a member of the
Executive Committee from 2009-2016, latterly serving as President of Aerospace from 2013-2016.
He began his career as a sponsored undergraduate trainee with the Dowty Group in 1984 (now partof Safran SA) where he held a variety of management roles.
Mr Wood has lived and worked in the UK, France and Canada. He holds a degree in Engineeringfrom the Open University in the UK and a Master of Business Administration from INSEAD in France.
He is a Fellow of the Royal Aeronautical Society; a Fellow of the Association for Project Management
and was awarded an honorary Doctorate of Science from Cranfield University in 2015.
CURRENT MANDATES--Member of the Board of Directors of Airbus SE;--Member of the Board of Directors of National Grid plc;--Member of the Board of Directors of Aero Accessories.
FORMER MANDATES FOR THE LAST FIVE YEARS--Member of the Board of Directors of ADS Group Limited (until December 2023);--Contractor of ATL Partners (until May 2023);--CEO of Meggitt plc (until September 2022);--President of ADS Group Limited (until January 2022).

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4. Corporate Governance
4.1 Management and Control

Changes in the composition of the Board in the courseof 2023
There were no changes in the composition of the Board in thecourse of 2023.

Changes in the Board committees in the course of 2023
In April 2023, Mr. Antony Wood was appointed to the Audit
Committee, to bring the number of members back to five,
following Mr. Crosby’s departure from this committee in 2021.

Independent Directors
The Independent Directors appointed pursuant to the criteria
of independence set out above are René Obermann, Ralph
Crosby Jr., Catherine Guillouard, Victor Chu, Maria Amparo
Moraleda Martinez, Claudia Nemat, Jean-Pierre Clamadieu,Mark Dunkerley, Stephan Gemkow, Irene Rummelhoff andAntony Wood.

Prior Offences and Family Ties
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.

(iii) Operation of the Board of Directors in 2023
Board of Directors Meetings
Nine Board meetings (including ad hoc calls) were held in 2023.
The average attendance rate at these meetings was 95.3%. As
is the case every year, the Board of Directors was informed in
between Board meetings of any developments relevant to theCompany, through written communications and through verbal
debriefings held on a regular basis between meetings. Nonexecutive sessions took place at the end of each meeting of
the Board of Directors.
The main areas of work carried out by the Board of Directors in
2023 are described below:

Company’s results and operative planning:–– Review and approval of the 2023 operative planning;–– Regular reviews of the Company’s figures and results, its
overall financial situation and capital allocation in the context
of the volatile, uncertain, complex and ambiguous world;–– Decision to submit a dividend proposal at the 2023 Annual
General Meeting;–– Review of forecast results and annual guidance for 2023.

Internal controls and risk management–– Regular reviews of top company risks and opportunities;–– Approval of the Risk Chapter of the 2022 Report of the Boardof Directors and Universal Registration Document.

Audit and relations with statutory auditors–– Review of the 2023 quarterly and annual financial statements
along with relevant statutory auditors’ reports.

General / strategy–– Changes to the leadership team: Airbus announced changes
to the leadership team led by Chief Executive Officer GuillaumeFaury, as well as the appointment of a dedicated Commercial
Aircraft business management team to operate under the helmof Christian Scherer.
–– Uncertain geopolitical environment: regular monitoring of thesituation related to the war in Ukraine, China/US tensions aswell as the geopolitical environment in the Company’s CoreCountries and global market as well as regular reviews of theirimpact on the Company.
–– Commercial Aircraft business: monitoring and regular
discussions on key topics such as the progress madetowards the production ramp-up, the supply chain issues,
the availability of engines and the overall Commercial Aircraftbusiness strategy.
–– Defence and Space: review of the financial situation of
the Division and strategic orientations, regular updates on
key programmes including the Future Combat Air System(FCAS) and Ariane 6 (ArianeGroup joint venture), focus on
improvements in the Space business and follow-up on theongoing transformation launched in 2023.
–– Helicopters: review of the financial situation of the Division, theprogress made on major projects (including in securing the
Tiger MkIII programme) and on the Next Generation Rotorcraft
Capability (NGRC) and strategic reviews.
–– Sustainability: discussions encompassed employees’ healthand safety and engagement, inclusion and diversity (including
gender diversity), the growing environmental and climate
challenges and the status of future aircraft and SustainableAircraft Fuel (“SAF”) as well as Environment Social andGovernance (“ESG”) topics & Defence. These ambitions were
furthered by the creation of a dedicated Chief Sustainability
Officer organisation.
–– Digital: Deep dive on ongoing digital projects, in particular
Airbus’ Digital Design Manufacturing and Services (DDMS)
initiative, including a visit to the Company’s DDMS playgroundfor a presentation of use cases. Updates on Artificial
Intelligence and Cybersecurity developments. Review of thestrategic opportunity of a transaction with Atos in relation
to its big data and security business line to accelerate theCompany’s digital transformation journey and enhance its
defence and security portfolio.
–– Product safety: a bi-annual review of product safety-related
issues was performed, updates on relevant developments
were provided at quarterly meetings of the Board of Directors
and in between Board meetings, as per the product safety
protocol in place.
–– Ethics and Compliance: quarterly updates on the International
Traffic in Arms Regulations (“ITAR”) monitorship, including
a presentation by the ITAR Special Compliance Officer,
Philippe Oudinot, of his report at the July Board of Directors’
meeting, deployment of the export control programme andConsent Agreement and Deferred Prosecution Agreement
conclusion. Closure of the Consent Agreement and theDeferred Prosecution Agreements in 2023.

Corporate governance–– Board composition and succession plan:–– Review of the Board composition (including skills, experienceand gender mix), continuous update of the Board succession
plan and launch of relevant Non-Executive Directors searchwith the support of independent advisors;

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44. Corporate Governance
4.1 Management and Control–– Decision to propose Mr Ralph D. Crosby, Mr Mark Dunkerley
and Mr Stephan Gemkow for renewal as non-executive Board
Members at the 2023 Annual General Meeting;–– Appointment at the 2023 Annual General Meeting andonboarding of a new non-executive Board Member, Mr Antony
Wood.
–– Board Committees composition review and appointment of
Mr Antony Wood as a member of the Audit Committee.
–– Board effectiveness review including improvement action plan
update (see Board evaluation section below).
–– CEO and Executive Committee members’ succession plan:
regular talent and development plans review, including get toknow sessions with selected talents.

Compensation–– Non-Executive Directors’ remuneration evolution decision
following a benchmark analysis performed by an independent
advisor;–– CEO and Executive Committee members 2022 individual
achievements assessment and 2023 roadmap definition;–– Extensive review of the CEO’s remuneration policy in light ofa benchmark performed by an independent third-party andof shareholders’ and stakeholders’ feedback;–– Employees’ remuneration, retention and ownership schemes
review.

Annual General Meeting–– Preparation of the 2023 Annual General Meeting with theapproval of the agenda, draft resolutions and report of theBoard of Directors, preparation of the 2024 Annual General
Meeting.

Strategy off-site Board meeting, induction programmeand other site visits
Each year, the Board of Directors holds one strategy off-site
meeting. In 2023, this meeting took place in Airbus Atlantic’s
Tunisian premises where the Board met with the Company’s
local teams and visited the industrial site as well as some of theCompany’s suppliers located on the same site (Aeropark). There
was a focus on Airbus’ aerostructure business, notably with apresentation on the manufacturing of detailed parts as well ason the sub-assembly and final-assembly of fuselage sections.
In addition, Mr Antony Wood, as new member of the Board,
joined by other members of the Board of Directors (in particular
Stephan Gemkow and Mark Dunkerley), followed the Airbus
induction programme aiming at providing relevant information
to support them in their non-Executive Director roles as well as
allowing them to meet Airbus Executive Committee members
and senior talents of the Company.
Three meetings were organised in 2023 as part of this induction
programme: in Hamburg (Germany) at Airbus Commercial
Aircraft business, in Toulouse (France) at Airbus Defence andSpace Connected Intelligence site and in Getafe (Spain) at Airbus
Defence and Space.
During those meetings, presentations on business strategy andupcoming challenges were made by top Company executives toprovide information about Company activities such as:–– A321 and A321XLR Final Assembly Lines visits;–– Unloading procedure at the Beluga centre observation;–– Exchanging with Trainees of the vocational training centre(Airzubis);–– Spacecraft production centre visit;

230 Airbus Annual Report

Universal Registration Document 2023–– Meeting the Ariane 6 team and visiting the MRTT hangars
and A400M maintenance, repair and overhaul (MRO) centre.
Other site visits took place in 2023, including a visit of the
Airbus-Leonardo ATR joint venture in Blagnac (France). Eager
to engage with Airbus’ teams globally, René Obermann also
visited in 2023 the sites of Hamburg, Manching (Germany) andToulouse (France). In addition to the site visits, René Obermann
had regular exchanges with Airbus top management leaders aswell as key stakeholders.

Board Evaluation 2023
Principle
The Board of Directors implemented a continuous evaluation
process of its performance based on a three-year cycle. Aspart of this process, every three years, a formal evaluation of
the functioning of the Board of Directors and its Committees
is conducted with the assistance of a third-party expert. In
the two years succeeding such an outside evaluation, theGeneral Counsel, being also the Corporate Secretary, issues aquestionnaire focusing on the implementation of the improvement
action plan resulting from the aforementioned third-party
assessment and more generally on the Board performance.
The outcome of such an internal evaluation is then presented
and discussed at the December Board meeting.
2023 was the third and final year of the three-year cycle thatstarted in 2021. In November 2023, the Board of Directors,
therefore, carried out an internal evaluation based on aquestionnaire issued by the General Counsel and circulated toeach Board Member. The questionnaire covered the following
key topics:–– overall Board performance;–– Board and Committees functioning and contribution;–– quality of topics covered at Board level;–– the relationship and dynamic between Board and Management
and further amongst Board members;–– Board decision-making processes;–– Board composition and skills;–– Board and Management succession planning; and–– Board Secretary support.
In this internal evaluation, the Board confirmed its overallsatisfaction with the progress made within the Board incomparison to last year’s evaluation and the defined action planthat resulted from the formal evaluation conducted by a thirdparty expert, Korn Ferry, in 2021.
The Board notably valued the existing set of diversified skills andhigh level of expertise of its members. The Board highlighted
the necessity to continue improving gender and geographicaldiversity and reinforcing the Board’s broad expertise, including
technology expertise.
It was noted that, under the Chairman’s leadership, the open andtrusted debates as well as the Board dynamics – with a stronglevel of Board Members’ engagement – contribute to the good
performance of the Board. The outcome of the questionnaireemphasised the trustful relationship between the Chairman,
the CEO and the Board. The Board valued the current practiceof having regular non-executive sessions and would welcome
enhancing further the exchanges amongst non-executive
members in preparation for the Board meetings.

4. Corporate Governance
4.1 Management and Control

Furthermore, the Board confirmed the added value of the deep
dive sessions organised on specific topics as well as the site visitsthat should be maintained going forward. The Board noted thatsignificant time was allocated to in-depth strategic debates thatwill be pursued in 2024. Finally, it was indicated that Board andManagement succession planning, supply chain management
and geopolitical aspects will remain focus areas in 2024.

associated internal policies, procedures and controls). This
includes the areas of money laundering and terrorist financing,fraud, bribery and corruption, trade sanctions and export control,
data privacy, procurement and supply chain compliance andanti-competitive practices. The ECSC is also empowered tooversee the Company’s sustainability strategy and effective
governance and ensure that sustainability related topics aretaken into account in the Company’s objectives and strategy.

4.1.1.2 Board Committees

The ECSC makes recommendations to the Board of Directors
and its Committees on all ethics, compliance or sustainabilityrelated matters, including on climate-related disclosures,and is responsible for providing the Audit Committee withany necessary disclosures on issues or alleged ethical andcompliance breaches that are financial and accounting-related.
The ECSC maintains a reporting line with the Chief Ethics &Compliance Officer, who attends every ECSC meeting and isrequested to provide quarterly reports on its activities, andwith the Chief Sustainability Officer and Communications andmember of the EC, who attends each ESCS meeting.

a) The Audit Committee
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 approval of
the annual financial statements and the interim accounts (Q1,
H1, Q3), as well as the appointment of external auditors and theirremuneration. Moreover, the Audit Committee has responsibility
for verifying and making recommendations to the effect that theinternal and external audit activities are correctly directed, thatinternal controls are duly exercised and that these matters are
given due importance at meetings of the Board of Directors.
Thus, it discusses with the auditors their audit programme
and the results of the audit of the financial statements, andit monitors the adequacy of the Company’s internal controls,
accounting policies and financial reporting. It also oversees
the operation of the Company’s enterprise risk management
system and keeps a strong link to the Ethics, Compliance andSustainability Committee. For further details in this regard, see«– 4.1.3. 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 attend
all Audit Committee meetings (subject to their recusal from
portions of such meetings, as may be appropriate). The CFO
and the Head of Accounting Record to Report are requested
to attend meetings to present management proposals and toanswer questions. Furthermore, the Head of Corporate Audit& Forensic and the Chief Ethics & Compliance Officer report to
the Audit Committee on a regular basis.
In 2023, this Committee met six times with an attendance rateof 93.3%. It fully performed all of its duties and discussed all
the items described above. In particular, it performed reviews ofinternal controls, corporate audit (including major findings andaudit plan for 2023), accounts (i.e. 2022 full year accounts, 2023
Q1, H1 and Q3 accounts, specific provisions and accounting
items, operative planning and forecasts), tax related issues andindependence of external auditors. In addition, the Committee
performed a deep-dive on the Company’s enterprise risk
management (“ERM”) processes and regular reviews of top
company risks and opportunities. Legal and compliance updates
were also presented and discussed in meetings.

b) The Ethics, Compliance and Sustainability
Committee
Pursuant to the Board Rules, the Ethics, Compliance andSustainability Committee (ECSC) which is required to meetat least four times a year, assists the Board of Directors inoverseeing the Company’s culture and commitment to ethicalbusiness, integrity and sustainability. The ECSC is empowered
to monitor the Company’s Ethics & Compliance programme,organisation and framework to make sure that the Company’s
Ethics & Compliance governance is effective (including all

The Chairman of the Audit Committee and the Chairman of the
RNGC are members of the ECSC. Unless otherwise decided by
the ECSC, the CEO and the Chairman of the Board of Directors
attend all of the meetings. From time to time, independent
external experts are also invited to attend ECSC meetings.
In 2023, the ECSC met four times with an average attendance
rate of 90%. All of the above-described items were discussed
during the meetings and the ECSC fully performed all its duties.
The ECSC’s work during the year was evenly split between
sustainability topics and compliance topics. On the sustainability
side, the ECSC discussed key sustainability roadmaps, including
human rights and substances, and provided guidance on a wide
variety of climate-related topics, including climate disclosures,internal strategy related to SBTi Targets and SAF. The ECSC
also reviewed the Company’s strategy linked to critical materials
sourcing, as well as the Company’s community impact policy
and platform. The evolution of sustainability reporting and theregulatory landscape was a further point of attention. The
ECSC continued to closely monitor Ethics and Complianceactivities following the settlements reached with the French,
UK and US authorities in January 2020, culminating in the
conclusion of the Deferred Prosecution Agreements in 2023
and the subsequent dismissal of the related proceedings.
The Company’s deployment of its export control programme
and the status of the International Traffic in Arms Regulations(ITAR) monitorship has been an area of strong focus, which
it will continue to be following the conclusion of the Consent
Agreement in 2023.

c) The Remuneration, Nomination
and Governance Committee
Pursuant to the Board rules, besides its role described in
section “– 4.1.1 Board of Directors composition, powers, rules
and engagement with shareholders” above, the Remuneration,
Nomination and Governance Committee (“RNGC”) consultswith the Chairman and the CEO with respect to proposals forthe appointment of the members of the Executive Committee,
and makes recommendations to the Board of Directors
regarding the appointment of the Secretary to the Board of
Directors. The RNGC also makes recommendations to theBoard of Directors regarding succession planning (at Boardof Directors, Executive Committee and senior managementlevels), remuneration strategies and long-term remuneration

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44. Corporate Governance
4.1 Management and Control

plans. Furthermore, the RNGC oversees contractual mattersin relation to the members of the Board and the Executive
Committee, including the terms and conditions of the relevant
contracts, and the preparation of the remuneration policy for
approval by the Board. The rules and responsibilities of the
RNGC have been set out in the Board Rules.
In addition, the RNGC reviews the Company’s top talents,
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 theCompany’s corporate governance and makes proposals forchanges to the Board Rules or the Articles of Association.
The Chairman of the Board of Directors and the CEO attend all
meetings of the RNGC (subject to their recusal from portionsof such meetings, as may be appropriate). 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
remuneration or personal situation.
Pursuant to the Board Rules, the Chair of the RNGC
automatically fulfils the function of “Lead Independent Director”.
In this role, the Chair of the RNGC is responsible for (i) replacing
the Chairman if unable to attend meetings of the Board of
Directors, (ii) organising the annual appraisal of the Chairman’s
performance by the Board of Directors and (iii) acting as anintermediary for, and between, the other Directors whennecessary.
The RNGC is required to meet at least four times a year. In 2023,
it met six times with an attendance rate of 95.8%. It discussed
all of the above-described items during the meetings and it fully
performed all its duties. In particular, the Committee worked on
the reorganisation of the Company’s leadership team with thecreation of a Commercial Aircraft CEO role dedicated to the
Airbus Commercial Aircraft business and a number of changes
within the Company’s Executive Committee. More generally,
the RNGC held regular discussions on the CEO’s and Executive
Committee members’ succession plans, on talent management(development, engagement and retention) and diversity.
In parallel, the RNGC reviewed the Board of Directors’
succession plan, with a strong focus on diversity (including
gender diversity and skills mix). The RNGC’s work notably led
to the identification of a number of talents for potential futurechanges within the Board. The RNGC work also included
reviewing the membership of the Board Committees. Change
to the composition of the Audit Committee was implemented
in 2023 with the nomination of Mr Antony Wood.
At the beginning of 2023, the RNGC, with the support of an
external advisor, launched a comprehensive review process of
the Company CEO’s remuneration policy that evaluated pay
components, pay mix (including the balance between short andlong term incentives), the performance conditions considered
and other structural features to ensure that the policy continues
to attract, retain and motivate executives. This process, as inprevious policy reviews, included engagement meetings withshareholders and other relevant stakeholders as well as anindependent benchmark of peer’s pay practices. See section“– 4.2.1.1 Remuneration Policy – Executive remuneration –Applicable to the CEO” for more information on this matter.

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4.1.1.3 The Executive Committeea) Nomination and Composition
The Executive Committee of Airbus (the “Executive Committee”
or “EC”) is chaired by the Chief Executive Officer and its members
are appointed 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 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 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.
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 Commercial Aircraft,
Helicopters and Defence and Space businesses, and the key
functions of the Company.

4. Corporate Governance
4.1 Management and Control

The CEO is the only Executive Director within the Board of
Directors and represents the Company on the Board of Directors.
But, depending on the topic, he usually asks the responsible
EC member to join him at meetings of the Board of Directors topresent the financials (CFO), programme/product topics (Division
heads), HR matters (CHRO) or any other topic where a specialist
is needed. This approach allows the Board Members to get toknow the EC members and equips them to make judgements
when it comes to decisions about key positions.

c) The Executive Committee
During 2023 the Executive Committee met 4 times. On 12 October
2023 the Company announced changes to its top managementand Executive Committee, to take effect from 1 January 2024.
The changes include the creation of a designated Commercial
Aircraft leadership team, operating under the helm of ChristianScherer. The Executive Committee is comprised of the heads ofoperating segments and the heads of certain key functions within
the Company, including members of the Commercial Aircraft
leadership team. The composition of the Executive Committee
and top management of Airbus SE as of 1 January 2024 isreflected in the table below.

COMPOSITION OF THE EXECUTIVE COMMITTEE AND TOP MANAGEMENT AS OF 1 JANUARY 2024
Guillaume Faury(1)Chief Executive Officer

Thierry Baril(1)Chief Human Resources Officer

Bruno Even

Chief Executive Officer Airbus Helicopters(1)

4

Alberto Gutiérrez(1)Executive Vice-President Special Industrial Projects

John Harrison(1)General Counsel & Head of Airbus Public Affairs

Catherine Jestin(1)Executive Vice-President Digital

Julie Kitcher(1)Chief Sustainability Officer and Communications

Sabine Klauke(1)Chief Technology Officer Airbus
Executive Vice-President Engineering of the Commercial Aircraft business

Florent Massou dit Labaquère(1)Executive Vice-President Operations of the Commercial Aircraft business

Philippe Mhun(1)Executive Vice-President Programmes and Services of the Commercial Aircraft business

Christian Scherer(1)Michael Schöllhorn

Chief Executive Officer of the Commercial Aircraft business(1)

Chief Executive Officer Airbus Defence and SpaceThomas Toepfer(1)Chief Financial Officer

C. Jeffrey Knittel

Chairman and Chief Executive Officer Airbus Americas(2)

Matthieu Louvot(2)Wouter van WerschGeorge Xu(2)Executive Vice-President Strategy(2)

Executive Vice-President International
Chief Executive Officer Airbus China

Note: The professional address of all Members of the Executive Committee for any matter relating to Airbus is Mendelweg 30, 2333CS Leiden, TheNetherlands.
(1) Members of the Executive Committee(2) Members of the Company’s top management regularly invited to attend Executive Committee meetings.

Guillaume Faury – Chief Executive Officer(see above under “– 4.1.1.1 Board of Directors”).

Thierry Baril – Chief Human Resources Officer
Thierry Baril was appointed Chief Human Resources Officer(CHRO) of Airbus on 1 June 2012.
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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4. Corporate Governance
4.1 Management and Control

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.

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.

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.

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.

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 – Executive Vice-President
Special Industrial Projects
Alberto Gutiérrez is a member of the Company’s Executive
Committee and acts as Executive Vice-President (EVP) Special
Industrial Projects since 1 January 2024. In addition, he acts as
Head of Airbus Spain, in charge of overseeing the Company’s
overall business activities in the country.
He was previously Chief Operating Officer (COO) of Airbus
since 1 July 2021 and was leading the production, quality andprocurement organisations of the Commercial Aircraft business.
His role was to implement continuous operational excellence andto develop the production system of the future.
Prior to this, he acted as 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.
In this role he was responsible for the worldwide operations of themilitary aircraft business, including manufacturing and production
in all the different sites of the company, setting up the A400M
Final Assembly Line in Seville, the A330 Tanker Conversion

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Alberto Gutiérrez has a Telecommunications Engineering degreefrom the Universidad Politécnica of Madrid and holds a masterin Information System Management.

John Harrison – General Counsel & Head of Airbus
Public Affairs
John Harrison has been Airbus’ General Counsel and Corporate
Secretary and a member of the Airbus Executive Committee
since June 2015. He has served as Chairman of Airbus UK
since January 2019 and as Head of Airbus Public Affairs since
January 2024.
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 EADS) in 1997, fulfilling various senior legal
positions in Airbus companies over a ten year period, culminatingin his tenure from 2003 to 2007 as General Counsel of the EADSDefence Division. He then joined Technip SA where he served
as Group General Counsel and Member of the Group Executive
Committee from 2007 to 2015, before he returned to Airbus inJune 2015.
John brings more than 30 years of experience in managing highprofile, complex cross border issues in some of Europe’s largest
industrial companies. He has experience leading and integratingteams with external stakeholders around the world, navigating
commercial and legal challenges.
Solicitor of the Superior Courts 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.
In 2017, John Harrison was appointed Chevalier of the French
Légion d’Honneur. He is a Fellow of the Royal AeronauticalSociety, a member of the UK Investment Council and a Trusteeof the British Normandy Memorial.

Catherine Jestin – Executive Vice-President
DigitalCatherine Jestin has been Executive Vice-President Digital at
Airbus since 1 July 2021 and is a member 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.

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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.
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 – Chief Sustainability Officer
and Communications
Julie Kitcher is Chief Sustainability Officer and Communications at
Airbus. In her position, she oversees the Company’s sustainability
roadmap, driving Airbus’ contribution to current environmental,
societal, regulatory and technological challenges. She also leads
Communications company-wide, promoting the Airbus brandinternally and externally in support of Airbus’ strategic objectives.
Julie is a member of the Airbus Executive Committee, reportingto the CEO, Guillaume Faury. Since taking on her responsibilities
in 2019, Julie led the articulation of Airbus’ purpose: to pioneer
sustainable aerospace for a safe and united world. In addition,
Julie drove the performance management, internal controls
and corporate audit functions as well as the Company’stransformation agenda. Under her leadership, Airbus received
approval from the Science Based Targets initiative (SBTi) for its
near-term greenhouse gas emission reduction targets.
Julie was appointed Chair of the Airbus Foundation board in 2021.
As such, she is actively involved in shaping the Foundation’s
work in humanitarian support, environmental action and youth
development. She has been appointed member of the board
to the Toulouse School of Economics’ Fondation Jean-Jacques
Laffont. Julie also sits on the boards of Airbus Helicopters UK and
the International Chamber of Commerce France as well as the
UK Government’s Jet Zero Council, fostering the developmentof aerospace technologies, facilities and regulatory frameworkin the UK.
In her previous position, Julie was the Executive Vice-President
Communications and Corporate Affairs, also serving as theCEO’s Chief of Staff, prior to which she was Head of Investor
Relations and Financial Communication at Airbus. She is a
Chartered Management Accountant (CIMA) and holds an MSc
from ESC Skema (Lille).

Sabine Klauke – Chief Technical Officer Airbus& Executive Vice-President Engineering of theCommercial Aircraft business
Sabine Klauke has been Chief Technology Officer for Airbus
and Executive Vice-President Engineering of the Commercial
Aircraft business since 1 January 2024 and is a member of theCompany’s Executive Committee.
She was previously Chief Technical Officer at Airbus since 1 July
2021 and a member of the Company’s Executive Committee
ever since.

In this role, Sabine drives the Company’s ambition behinddelivering bold and breakthrough technologies to build the futureof aerospace. She leads a team of more than 13,000 employees
across the globe who design, develop, certify and ensure
continuing airworthiness of all Commercial Aircraft products
and services.
In addition to her Airbus missions, Sabine serves as: Co-Chair of
the Clean Aviation Joint Undertaking, VP Aviation for the German
Aerospace Industries Association (BDLI), Chairwoman of theSupervisory Board of Airbus GmbH, and she is a member of
the Supervisory Board of Airbus Operations GmbH.
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 divisionand in charge of its product and services portfolio.
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.
Sabine holds a PhD in Mechanical Engineering from the Dresden
University of Technology (TU Dresden). From 1998 to 2002
Sabine worked at DELMIA, a brand of Dassault Systèmes, where
she carried out the deployment of digital manufacturing software
as well as consulting projects with customers in the automotive
and the aerospace industries worldwide.

Florent Massou dit Labaquère – Executive
Vice‑President Operations of the Commercial
Aircraft business
Florent Massou dit Labaquère was appointed Executive VicePresident (EVP) of Operations for the Commercial Aircraftbusiness of Airbus on 1 January 2024. He is leading the
production, quality and procurement organisations and is
focused on implementing operational excellence and developing
the production system of the future. He is also a member of theCompany’s Executive Committee.
He was previously Senior Vice-President (SVP) of Widebody
Programmes since 1 July 2022, after more than three years
at Airbus Canada Limited Partnership as Head of the A220
Programme, and was Vice-President (VP) of A380 Final AssemblyLine Toulouse prior to this.
Since joining Airbus in 2012, he held various positions, including
the role of Head of Inventory Optimisation and A320 “Fit for
Ramp up” Plants Cluster Leader in the Power 8+ transformation
programme.
Before joining Airbus, Florent served as Director of Strategy
and Finance at the French Prime Minister’s Offices, in the State
Investment Agency, and also served as Inspector of Finance atthe French Ministry of Economy, Finance and Industry.
Florent holds a master’s in Engineering, Economics and Physics
from France’s École Polytechnique. He joined the France’s Corps
des Mines, where he earned a master’s degree in Finance,
Economics and Public Policies.

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Philippe Mhun – Executive Vice-President
Programmes and Services of the Commercial
Aircraft businessobjectives and for driving the genesis of future aircraft productofferings and programmes, such as the A320neo, as well as
Airbus’ international development like the US final assembly lines.

Philippe Mhun was appointed Executive Vice-President
Programmes & Services for Airbus, in January 2019, and is amember of the Company’s Executive Committee.

In 2012, he moved to another part of the company when he
was appointed Head of Sales & International Operations at
Cassidian in Munich, Germany. Upon integration of Airbus’
Defence, Space and Military aircraft businesses, he became
the Head of Marketing & Sales of this new division until 2015.
He also chaired BDLI’s defence and security forum whilst beinga member of the BDLI presidium.

He is responsible for all current commercial aircraft programmes(A220, A320Family, A330, A350), as well as for their Support
and Services activities, and is leading the Future Programmesorganisation since January 2024.
In his previous role as Head of Customer Services since
October 2016, Philippe Mhun was responsible for all Airbus
Support and Services activities including the supervision of theServices Business Unit and affiliated subsidiaries, such as Satair,
Navblue and Sepang.
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 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.
Philippe Mhun holds a degree from the Applied Sciences National
Institute (INSA Lyon) as a mechanical engineer.
Philippe was born in 1962. He is married with three children. In
his free time, Philippe enjoys motor biking and sport, he has a
black belt in judo.

Christian Scherer – Chief Executive Officer of theCommercial Aircraft business
Christian Scherer was appointed Chief Executive Officer of theCommercial Aircraft business of Airbus in January 2024 and is
a Member of the Company’s Executive Committee. In the period
before, he was Airbus Chief Commercial Officer and Head ofAirbus International and a Member of the Executive Committee
from 2018.
Previously he was Chief Executive Officer of ATR for aperiod of two years, after having been Head of Airbus GroupInternational, responsible for driving the overall Airbus GroupInternationalisation strategy from 2015 to 2016.
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. He returned to headquarters
as Vice-President Leasing Markets. 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 of Commercial.
Following his important role in the Commercial activity, he took
on the role of Head of Strategy and Future Programmes at Airbus
in 2005, responsible for defining Airbus’ long term strategic

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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, where he was COO and a member of the company’s
Management Board from 2015 until his departure.
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.
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 US
Space & Defense Inc. and member of the Board of Directors ofStratasys Ltd (NASDAQ: SSYS).
He holds a degree in Mechanical Engineering and a PhD in
Control Engineering, both from the Helmut Schmidt University.

Thomas Toepfer – Chief Financial Officer
Thomas Toepfer was appointed Chief Financial Officer andmember of the Executive Committee on 1 September 2023.
Prior to this assignment, Thomas Toepfer was Member of theBoard of Management, CFO and Labour Director at Covestro AG,
a leading German company producing polyurethane andpolycarbonate raw materials.

4. Corporate Governance
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Born in Hamburg, Germany, in 1972, Toepfer holds a PhD in
Business Administration from Otto Beisheim Graduate Schoolof Management (WHU), Koblenz. He worked as a consultant
with McKinsey & Company, Inc. and in leading management
positions for KION Group AG, Karstadt Warenhaus GmbHamongst others.

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 and commercial
services businesses throughout the Americas, as well as forproviding leadership for the company’s market leading helicopter
business and its space and defence unit in North America. With
10,000 employees, Airbus Americas encompasses regional
corporate offices; engineering, training and innovation centres;
MROs, spare parts distribution facilities; imagery drone services
and large-scale manufacturing facilities producing commercial
aircraft, helicopters, and satellites.
Additionally, Jeff chairs Acubed by Airbus, the company’s
Silicon Valley-based innovation arm; is a board member of
Airbus Ventures, which invests in early stage technologies
across the globe; and is a member of the Airbus Canada Limited
Partnership Board – a multibillion-dollar joint venture between
Airbus and the Province of Quebec to procure parts, assemble,
and market the world’s most modern commercial aircraft, theA220.
Jeff has more than 35 years of experience in aerospace andtransportation finance. Before joining Airbus, Mr. Knittel was
Chief Executive Officer of C2 Aviation Capital (C2), a globalorganisation focused on acquiring, leasing and managing
commercial aircraft. Prior to leading C2 Aviation Capital,
he served in increasingly senior leadership positions at CITGroup Inc. His final position there was 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.
Jeff is currently the Vice Chair of the Board and Chair of theNominations Committee of the Smithsonian’s National Air andSpace Museum, on the Executive Committee and the Boardof Governors of the USO, and a member of the Board andExecutive Committee of the Atlantic Council. He recently
completed his second 3-year term on the Board of Trusteesof the National WWII Museum. Jeff is a former President andemeritus member of the Board of Governors of the Wings Cluband the former Chairman of the Board of Just One Break, a
not-for-profit institution founded by Eleanor Roosevelt for thedisabled and later merged with The Viscardi Center.
Jeff holds a bachelor’s degree in aviation management from
Embry-Riddle Aeronautical University. In addition, he graduatedfrom the Advanced Management Program at the University ofPennsylvania’s Wharton School of Business.

Matthieu Louvot – Executive Vice-President
Strategy
Matthieu Louvot was appointed Executive Vice-President
Strategy in January 2024.
He was previously Executive Vice-President for Programmes ofAirbus Helicopters, a role he had held since September 2019.
Matthieu joined Eurocopter as Vice-President and Head of
Strategy and Company Development beginning in April 2010.
From June 2013 to March 2016, Louvot served as Senior
Vice-President Support & Services and from April 2016 to
September 2019, as the Executive Vice-President Customer
Support & Services.
Before joining Airbus Helicopters, Louvot served for three years
as Adviser for Industry, Energy and Transportation to President
Nicolas Sarkozy at the French Presidency.
From 2005 to 2007, he was the Adviser for Budget and Regional
Development to Nicolas Sarkozy, Minister of Interior and Regional
Development, and prior to this assignment he served as Adviser
for Economic, Budget and Consular matters to Michel Barnier,
Minister of Foreign Affairs.
A married father of two children, Matthieu is a graduate of theEcole Polytechnique and Ecole Nationale d’Administration.

Wouter van Wersch Executive – Vice-PresidentInternational
Wouter van Wersch was appointed Executive Vice-PresidentInternational starting 1 January 2024. In this pivotal role, he takes
up the strategic mission of strengthening Airbus’ Internationalorganisation, ensuring it is best positioned to drive profitable
growth across all three businesses as well as enhance thecompany’s global impact.
Wouter joined Airbus in 2020 as Executive Vice-President Europe
Region & Sales with the mission of enhancing cross-businesscapabilities in Europe as well as growing the commercial
aircraft market share. His 29-year career to date has involved
marketing, sales, and general management roles for a number ofmultinational companies in various parts of the world, including
15 years in Asia Pacific.
Wouter started his career at Havas in 1994 in international
marketing and project management before joining Airbus(formerly EADS) in 1997 as Sales Manager Asia. In 2000, hejoined Alcatel-Lucent, where he served in several positions,
including as Business Development Director Europe, Sales
Director Asia Pacific in China, and Country Manager in Indonesia.
In 2006, Wouter joined Alstom as Vice-President Marketingand Sales for Northern Europe, based in the Netherlands. He
was then promoted Senior Vice-President East Asia Pacific andmoved to Singapore, before becoming Leader of the General
Electric (GE) – Alstom integration Growth team in 2014.
On completion of the Alstom acquisition in 2015, Wouter was
appointed President and CEO of GE ASEAN, before being named
a GE Officer in 2016 and, subsequently, President and CEO of
GE Asia Pacific in 2018. Wouter was also a Board Member of
the Singapore Economic Development Board between 2017and 2020.

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A native of the Netherlands, Wouter grew up in France and is a
graduate in Business Administration from the Erasmus University
Rotterdam.
Married, with three children, he is a keen sportsman, especiallyfield hockey, which he has played at the highest international
level.

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 Directorof 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.
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”
In accordance with Dutch law and with the provisions of the
Dutch Corporate Governance Code (Dutch Code), which
provides (non-obligatory) guidance for effective collaborationand management, the Company either applies the provisionsof the Dutch Code or, if applicable, explains and gives soundreasons for deviations from these provisions.
The Dutch Code was revised in 2022, with its updated
recommendations applying to financial years starting on or after
1 January 2023. The Company welcomed the updates to the
Dutch Code and continues supporting its emphasis on topics
such as sustainable long-term value creation and the importanceof culture (in particular, diversity and inclusion).
While the Company, in its continuous efforts to adhere to thehighest standards, applies nearly all the current recommendationsof the Dutch Code, it must, in accordance with the “comply or
explain” principle, provide the explanations below.
For the full text of the Dutch Code, please refer to: https://www.mccg.nl/.
For the financial year 2023, and in respect of compliance with
the Dutch Code, the Company states the following:

1. Securities in the Company as Long-Term
Investment
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. With this not being a strictlegal requirement, it is at the discretion of the non-Executive
Directors who own shares to decide whether to keep themas a long-term investment; the Company imposes no suchrequirement.
Provision 3.1.2 vi of the Dutch Code recommends that any
shares awarded to the CEO should be held for at least five
years after they are awarded. The rules applicable within the

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Company (as described in section 4.2.1.1 e) below) do not impose
a minimum five year holding period for such awarded shares;
however, the Company believes that potential deviations from thisrecommendation are significantly limited by the share ownershipguideline (set forth in section 4.2.1.1 f), under which the CEO is
expected to hold throughout his/her tenure Airbus SE shareswith a value equal to at least 200% of his/her base salary.

2. Dealings with Analysts
Best practice provision 4.2.3 of the Dutch Code recommends
meetings with analysts, presentations to analysts, presentations
to investors and institutional investors and press conferences
shall be announced in advance on the Company’s website andby means of press releases. In addition, it recommends thatprovisions shall be made for all shareholders to follow thesemeetings and presentations in real time, and that after the
meetings the presentations shall be posted on the Company’s
website.
For practical reasons, the Company does not always allow
shareholders to follow meetings with analysts in real time.
However, the Company ensures that all shareholders and otherparties in the financial markets are provided with equal andsimultaneous information about matters that may influence theshare price.

3. Diversity and Inclusion
Best practice provision 2.1.6 of the Dutch Code recommends thatthe corporate governance statement explain the diversity andinclusion policy of the Company and the way it is implemented. In
accordance with Dutch law (article 2:166 of the Dutch Civil Code)the Company provides such information in “– 1.2.11 Inclusion
and Diversity”.

4. Corporate Governance
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4. CEO’s remuneration policy – Severance
The Airbus remuneration policy provides that in case oftermination of the CEO’s duties at the initiative of the Board of
Directors, the CEO shall be entitled to a termination indemnity
equal to one time the last Total Annual Remuneration (defined theBase Salary and VR most recently paid), subject to applicable
local legal requirements (if any). The termination indemnity
would be paid only provided that the performance conditions
assessed by the Board of Directors had been fulfilled by theCEO. 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. Best practice provision 3.2.3 of the Dutch
Code recommends that severance arrangements be limited to a
maximum of one year’s base salary. As the Company competes
on a global basis (and beyond the Dutch market) for talent, theCompany deems a deviation of this recommendation to bejustified. The termination indemnity of the CEO could therefore
result in a deviation from the Dutch Code.

5. CEO’s remuneration policy implementation –Pay ratio
Best practice provision 3.4.1 of the Dutch Code recommends
that the Company’s remuneration report describes theCompany’s pay ratio and any changes in that pay ratio
compared to at least five previous financial years. The Company
is disclosing the Company’s pay ratio for the financial years
2019 through 2023, consistent with the Dutch Corporate
Governance Code. The Company’s pay ratio for the financial

year 2018 is not disclosed in section “– 4.2.1.3 Implementationof the Remuneration Policy in 2023: CEO” of the remuneration
report because, due to the particular circumstances reflectedin CEO remuneration for 2018 and due to intervening changes
in the composition of CEO remuneration, the Company believes
that the pay ratio for that year would not be a representative
comparison figure. The Company’s pay ratio for the financial
year 2018 remains publicly disclosed in the Company’s Board
Report for that financial year.

6. Other
For information on the operation of the Shareholders’ Meeting,its key powers, the shareholders’ rights and how such powers
and rights can be exercised, see “– 3.1.10.2 Right to Attend
Shareholders’ Meetings”.
For information on the composition and operation of the Boardof Directors and its respective committees, see “– 4.1.1.1a:Composition of the Board of Directors”; “– 4.1.1.1e(iii): Operationof the Board of Directors in 2023”; and “– 4.1.1.2: Board
Committees”.
For information on (i) significant direct and indirect
shareholdings, (ii) holders of shares with special control rights,(iii) rules governing appointment and dismissal of Directors,(iv) amendments to the Articles of Association, and (v) the
delegation to the Board of Directors of the power to issue or buy
back shares, see “– 3.3.1: Shareholding Structure at the Endof 2023”; “– 3.3.2 Relationships with principal shareholders”;“– 4.1.1.1.a: Composition of the Board of Directors”; and “– 3.2.3
Modification of Share Capital or Rights Attached to the Shares”.

4.1.3 Enterprise Risk Management System
The long-term development and production cycles of theCompany’s wide range of products and services in a globalised
supply chain and highly regulated environment make enterpriserisk management (“ERM”) a crucial mechanism both to mitigate
risks faced by the Company and to identify and enhance
potential opportunities.
Applied across the Company and its main subsidiaries, ERM
is a permanent top-down and bottom-up process, which is
executed across the Divisions at each level of the organisation.
It is designed to identify and manage relevant risks andopportunities. A sharp focus is put on the operational dimension
due to the importance of programmes and operations for theCompany. External factors are also considered in our approachin order to strengthen company resilience.
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 of 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 theCompany’s ERM system include the ISO 31000 standard forrisk management, defined by the International Organizationfor Standardization.
The ERM process consists of three elements:–– a strong operational dimension – derived from ISO 31000 –to enhance operational risk and opportunity management,
identifying and mitigating threats and vulnerabilities, including
single points of failure;–– 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 identified relevant sources of risks
and opportunities that would potentially affect the Company’s
activities, its businesses and its organisation in the short, mid andlong-term. The ERM process is part of the overall management
process of the Company and is interrelated with such otherprocesses.

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All Airbus organisations, including the Divisions, subsidiaries
and controlled entities, commit to and confirm the effective
implementation of the ERM system. The annual “ERM
Confirmation Letter” issued by each Airbus organisation serves as
their formal acknowledgement of their effective implementationof the ERM system.
For the main risks to which Airbus is exposed, see “Risk Factors”.

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 ERM system strategy and business risks andopportunities, as well as the design and effectiveness of the
ERM system;–– the CEO authorises ERM reports to be escalated to the Boardof Directors. The CFO is accountable for an effective ERM
system and supervises the Head of ERM, the ERM systemdesign, and process implementation;–– the Head of ERM has primary responsibility for the ERM
strategy, priorities, system design, culture development andreporting tool. The Head of ERM supervises the operationof the ERM system, and is supported by a dedicated risk
management organisation in the Company, focusing on theoperational dimension, including early warning and anticipation
culture development, while actively seeking to anticipate andproactively mitigate identified sources of risk by challenging

the business to address such potential centres of risk within
the Company. The risk management organisation is structured
as a cross-divisional centre of competence and works toembed proactive risk management within the Company; and–– Company management at the executive level has responsibility
for the operation and monitoring of the ERM system in theirrespective areas of responsibility, and for the implementationof appropriate response activities aimed at reducing risks
and seizing opportunities, while also considering therecommendations of the internal and external auditors.

4.1.3.3 ERM Effectiveness
The ERM effectiveness is analysed by:–– ERM centre of competence (CoC), based on ERM reports,
ERM Confirmation Letters, in situ sessions (e.g. risk reviews),
participation in key controls (e.g. major programme maturity
gate reviews);–– ERM key performance indicators (KPIs) measuring maturity
and effectiveness of the ERM process within the Company’svarious programmes and functions;–– risk and opportunity in-depth analyses proposed by the ERM
CoC and performed by the functions with the involvement andsupport of the ERM CoC; and–– Corporate Audit, based on internal Corporate Audit reports
and on an annual survey of heads of programmes andfunctions regarding the ERM network.
–– the combination of the following controls is designed to achievereasonable internal assurance as to ERM effectiveness:

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 that are presented by the Divisions or other Airbus organisations to top management.
ERM working sessions at an 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 Confirmation Letters,in situ sessions (risk reviews etc.), participation in 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,
conducting an annual survey.

Ethics & Compliance

Alert system
Detects deficiencies regarding conformity with applicable laws and regulations, as well as with ethical businessprinciples.

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4. Corporate Governance
4.1 Management and Control

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 the
Board of Directors has received from management, the Boardof Directors believes to the 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 Universal Registration Document provides sufficientinsight into any material failings in the effectiveness of theinternal risk management and control systems;–– it is justified that the financial statements have been preparedon a going concern basis; and–– this Universal Registration Document states the material
risks and uncertainties to the extent that they are relevant to
the Company’s continuity for the period of 12 months after the
preparation of this Universal Registration Document.
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 the potential to override
the controls in place. Consequently, no assurance can be giventhat the Company’s internal risk management system andprocedures are or will be, despite all care and effort, entirely
effective.

4.1.4 Internal Audit
In accordance with the Dutch Corporate Governance Code,Airbus governance includes an internal audit function “Corporate
Audit & Forensic”. The function engages in the independentand objective corporate assurance activities of internal auditing,consulting activities, and forensic investigations. It supports
the Company in improving its operations and accomplishing its
objectives by bringing a systematic and disciplined approach4
to evaluate and improve the design and effectiveness of theorganisation’s governance, risk management, and internal
controls. Its mandate is set out in the Airbus Corporate Audit andForensic Charter. The department’s independence is establishedby direct reporting to the Chief Executive Officer and participation
to the Audit Committee. The function complies with the Global
Internal Audit Standards of The Institute of Internal Auditors.

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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). By adopting a resolution to that effect,
the general meeting may (re)adopt, amend or supplement the
Remuneration Policy on the basis of a proposal by the Board of
Directors, at the recommendation of the RNGC.
The Board of Directors, at the recommendation of the RNGC, may
decide to temporarily deviate (either increasing or reducing the
remuneration levels) from any element of the Remuneration Policy
as outlined below, and may continue to do so until the General
Meeting adopts an amended version of the Remuneration Policy
following the occurrence of such deviation, if this is necessary toserve the long-term interests and sustainability of the Company
or to assure its viability. Any deviation will be made public andduly justified.
The Remuneration Policy detailed in this chapter “– 4.2.1
Remuneration Policy” was adopted by the 2020 AGM witheffect as of 1 January 2020. The Remuneration Policy therefore
needs to be submitted for approval at the 2024 AGM, even
if it is unchanged. In anticipation of the need to submit the
Remuneration Policy for shareholders’ approval at the 2024
AGM, the RNGC, with the support of an external advisor,
launched a comprehensive review process at the beginningof 2023, evaluating pay components, pay mix (including thebalance between short and long-term incentives), performance
conditions and other structural features to ensure that the
Remuneration Policy continues to attract, retain and motivate
executives. This process, as in previous remuneration policy
reviews, included engagement with shareholders and otherrelevant stakeholders, as well as an independent benchmarkof pay practices. This process allowed the Company to identify
potential changes to the Remuneration Policy, as detailed below.
However, after careful consideration and having taken investors’
feedback into account, the Board has decided, as a soundgovernance practice, to align the timing for a decision by theAGM on the changes to the Remuneration Policy with that of the
CEO’s new mandate (renewal/appointment), which will take placeat the 2025 AGM, and therefore to submit the contemplatedchanges to the Board of Directors’ Remuneration Policy at the2025 AGM (and not the 2024 AGM).
Subject to further engagements as part of the 2025 AGM
roadshow, the currently envisioned changes would strive for astronger alignment of remuneration with the long-term strategyof the Company and would include: (i) the introduction of a
Sustainability & Climate related KPI in the Long Term Incentive(“LTI”) portion of CEO’s remuneration (25%) and (ii) an increasein the LTI grant from 100% to 150% of the base salary. In
parallel, the Board is contemplating reinforcing the “pay for
performance” principle by reviewing the range of performanceachievement and pay-out of the LTI KPIs. The range could

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Universal Registration Document 2023

evolve from 50% – 150% to 0% – 200% (starting from 0%
without taking the EBIT into consideration and increasing thescale up to 200%). Finally, the Board envisages strengthening
financial / quantitative performance measures with the potential
inclusion of relative Total Shareholder Return (“TSR”) as a KPI
in the LTI (25%) and by increasing the quantifiable portion of the
CEO’s individual objectives (Individual Component of the Annual
Variable Remuneration).
In consideration of the above, it is therefore proposed thatwith effect from 1 January 2024 and until the 2025 AGM, thecurrent Remuneration Policy in the form set out below in thischapter 4.2.1 “Remuneration Policy”, remains in place.

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 help to ensure that theCompany achieves its strategic and operational objectives,
thereby delivering long-term sustainable returns for all
shareholders and other 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, whilst
also taking into consideration the employment conditions of
the Company’s employees; and (iii) further incentivises theCompany’s corporate values by also basing variable remuneration
components on the achievement of non-financial targets andmetrics using environmental, social or governance criteria via
the sustainability performance measure.
Before setting the targets to be proposed for adoption by the
Board of Directors, the RNGC analyses scenarios with respect
to the potential targets, and considers the financial and otheroutcomes that would result from meeting various performancelevels, including achieving maximum performance thresholds,
and how the level and structure of executive remuneration would
be affected, together with the potential risks for the Company’sbusiness these outcomes could present. The Board of Directors
further considers these aspects, based on the RNGC’s
recommendations.
Before making a recommendation relating to the remunerationof the CEO, the RNGC and the Board of Directors shall also takenote of the views of the CEO with regard to the amount, leveland structure of his or her remuneration.

4. Corporate Governance
4.2 Interests of Directors and Principal Executive Officersb) Total Direct Compensation and Peer GroupThe CEO’s total direct compensation (“Total Direct Compensation”) comprises a base remuneration (“Base Salary”), an annual
variable short-term remuneration (“Variable Remuneration” or “VR”) and an award under the LTI plan (“LTIP”). The three elementsof 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 and LTIP) is
set by reference to the median of an extensive peer group (as described in paragraph 4.2.1.3 item a) below) and takes into accountthe scope of the role of the CEO, and the level and structure of executive rewards within the Company. The benchmark is regularly
reviewed by the RNGC, with the support of an independent consultant, and is based on a peer group which comprises:–– global companies in the Company’s main markets (France, Germany, UK, Spain and US), excluding financial institutions; and–– companies operating in the same industries as the Company worldwide.
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).

Collective (50% of VR): divided
between EBIT(1) (40%);
Free Cash Flow(2) (40%)
and Sustainability (20%).

Rewards annual
performance basedon achievement ofCompany performance
Individual (50% of VR): Achievement
measures and individualof annual individual objectives,
objectives.
divided between Outcomes andBehaviour.

Rewards long-term
commitment andCompany performance,and engagement basedon financial targets
aligned with long-term
objectives subject tocumulative performanceover a three-year period.

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) During 2023 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) change of 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 tomeasure 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

6

7

8

LTI paid in cash and/or shares

Indications assume a Base Salary of EUR 1.485 million.
“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 Sharesdepends on the share price development which is not capped. Illustrative table for a theoretical grant of 50% Shares / 50% Units.

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44. Corporate Governance
4.2 Interests of Directors and Principal Executive Officersc) Base Salary
The CEO’s Base Salary is determined by the Board of Directors, taking into account the peer group analysis mentioned above.

d) 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
the targets for these key value drivers at Company and Division levels. The common collective targets relate closely to internal
planning and to guidance given to the capital markets (although there may be variations from these). The key value drivers thatform the sustainability 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.
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.

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4. Corporate Governance
4.2 Interests of Directors and Principal Executive Officers

The performance of the Individual Component is measured by the RNGC for the CEO and for all the other members of the Executive
Committee.
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 help reinforce 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, with stringent targets having been 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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
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.
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.

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 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 toapplicable local legal requirements (if any), and provided thatthe performance conditions (as described in paragraph 4.2.1.3

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Universal Registration Document 2023

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), or in case of resignationor termination on or after his retirement date.
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.
Past LTIP awards may be maintained, in the event of 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
are forfeited for executives who leave the Company at theirown initiative, however this is subject to review by the Boardof Directors.
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).

4. Corporate Governance
4.2 Interests of Directors and Principal Executive Officers

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
Non‑Executive 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 2023: CEOThis paragraph 4.2.1.3 describes how the Remuneration Policy was implemented in 2023 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 executives, while taking into account bestpractices as well as employee and shareholder considerations. It should help to ensure that the Company achieves its strategic andoperational 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
Upon the request of the RNGC, a benchmark was performed in June 2023 by an independent third party, following an approachconsistent with that applied for the previous benchmark performed in 2021.
To consider the Company’s operations and employees’ breakdown by geographic areas, the relevant peer group was composedof 55 companies(1) selected from the CAC40 in France, the DAX 40 in Germany, the FTSE 100 in the UK, the IBEX 35 in Spain andthe Dow 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.
In particular, US companies were included in this peer group since Airbus has direct competitors in the US and since Airbus has
senior executives in the US where it competes to recruit talents. However, and considering the very unique US pay practices andas Airbus executives are mainly based in Europe, US companies were only weighted at 10%. The data was compounded using
the following weighting: France 30% Germany 30%, Spain 15%, the United Kingdom 15% and the USA 10%.
Financial institutions were excluded from the peer group.
The updated benchmark shows that globally the Total Target Cash (Base Salary + Variable Remuneration) of the peer group increased
by around 7% while the Total Direct Compensation (Base Salary + Variable Remuneration + LTIP) of the peer group increased byaround 10%, versus the previous benchmark.

(1) Peer group:France: Air Liquide, Danone, Dassault Systèmes, Engie, Safran SA, Saint-Gobain, Sanofi, Schneider Electric, Stellantis, Thales, Total, Vinci.
Germany: BASF, Bayer, BMW, Continental, Deutsche Post, Deutsche Telekom, E.ON, Henkel, Mercedes, SAP, Siemens, Volkswagen.
Spain: Aena, Amadeus IT, Cellnex, Endesa, Ferrovial, Iberdrola, Inditex, Naturgy, Repsol, Telefónica.
UK: Bae Systems, BAT, BP, Diageo, GSK, Rio Tinto, Rolls Royce, Shell, Tesco, Unilever, Vodafone
US: 3M; Boeing, Caterpillar, Fedex, GE, General Dynamics, IBM, Lockheed, Northrop Grumman, Raytheon.

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44. Corporate Governance
4.2 Interests of Directors and Principal Executive Officers

The comparison of the remuneration of the CEO versus the market range is as follows:–– the Total Target Cash of the CEO (€ 2,970,000) is below the median market range of the peer group by more than 7% (i.e. € 3,215,000);–– the Total Direct Compensation of the CEO (€ 4,455,000) is below the median level of the peer group by more than 34%(i.e. € 6,825,000).
€ 7,000,000€ 6,000,000€ 5,000,000€ 4,000,000€ 4,455,000€ 6,825,000€ 1,000,000€ 2,970,000€ 2,000,000€ 3,215,000€ 3,000,000€0Total Target Cash(TTC)Median market of the peer group

Total Direct Compensation(TDC)
2023 CEO remuneration

In addition to external benchmarks, the RNGC also considers the remuneration of employees through the review of the evolutionof the pay ratio (see 4.2.1.3 item (j)).
The Board of Directors, under recommendation of the RNGC, decided to maintain the current remuneration of the CEO.

b) Base SalaryThe 2023 CEO Base Salary level on a full year basis is unchanged compared to 2022 and amounts to € 1,485,000 (still below theBase Salary of the former CEO: € 1,500,000 in 2019).

c) Variable Remuneration
As stipulated in the 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 2023, the VR of the CEO amounts to an aggregate of € 1,915,650 composed of € 913,275 (48%) for the Common Collective
Component and € 1,002,375 (52%) for the Individual Component.

Individual part:€ 1,002,375
Achievement:
135%

248 Airbus Annual Report

Variable
Remunerationof CEO in 2023:€ 1,915,650

Universal Registration Document 2023

Common Collective
Component:€ 913,275
Achievement:123%

4. Corporate Governance
4.2 Interests of Directors and Principal Executive Officers

Performance Achievement – Common Collective Component
According to the policy applicable for the financial year 2023, the Common Collective Component for the Company consolidated
achievement has been assessed at 123% by the RNGC and the Board of Directors in February 2024, against the target lettersvalidated at the beginning of 2023 and that include detailed vesting scales for each criteria(1). It is based on an achievement of 80%
of target EBIT, 166% of target Free Cash Flow, and 122% of target sustainability (which is based on achievement of 200% of target
reduction of CO2 emissions and 43% of target reduction of FR1).
These criteria and their assessment apply to all Executives having a Common Collective Component in their variable remunerationand since 2022, this has also been extended to all Senior Managers. Therefore, approximately 4,950 employees receive a collective
bonus based on the achievements mentioned above.

Financial
80%

Sustainability
20%

EBIT
40%

80%

FCF
40%

166%

CO2
10%
FR1
10%

= 123%

200%

4

43%
MinimumAchievement0%

MaximumAchievement
200%

Sustainability targets are measured by two criteria: the rolling lost time injury frequency rate (“FR1”) which is the monthly number oflost time injuries per million worked hours averaged over 12 months) and the reduction in CO2 emissions (“CO2e”), each weighted
for 10% of the Common Collective Performance.
–– In 2023, the rolling FR1 remained stable in Airbus Commercial, decreased by more than 30% in Airbus Helicopters andincreased in Airbus Defence and Space, leading to a consolidated achievement of 43%. For further details, please refer to
Section 1.2.9 -Health and Safety.
–– In 2023, the CO2e decreased by 15% (reduction of circa 103 ktons), which is above the targeted reduction of 0.9%, leading toan achievement of 200%. For further details, please refer to Section 1.2.2. -Climate Change.
For 2024, the Board of Directors decided to maintain the sustainability component as follows: FR1 for 50% and CO2 avoidancefor 50%. The targets for 2024 are:–– a reduction of the rolling FR1 by 15% in Airbus Commercial and Airbus Defence and Space (the rolling FR1 in these two divisions
at the end of 2023 being above 1 and by 10% in Airbus Helicopters (the rolling FR1 for this division at the end of 2023 being
below 1 versus the actual 2023 rolling FR1;–– annual targets are set in line with the Company’s 2030 roadmap; they refer to a material sub-scope of its operations on which
the Company can have a more direct control and influence. The CO2e for 2024 was set in absolute value at 581 ktons, which
represents a reduction of 3% vs. 2023 (after scope extension). For further details, please refer to “– 1.2.2 Climate Change”.

(1) While the Company is paying all due attention to investors’ feedback, for sensitivity reasons, specific information on vesting scale (threshold, target, maximum) is
not disclosed.

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4. Corporate Governance
4.2 Interests of Directors and Principal Executive Officers

Overview on Individual Component achievements:
The Chief Executive Officer’s Individual Component of the 2023 Annual Variable Remuneration was assessed by reviewing whether
the objectives defined by the Board of Directors at the beginning of 2023 had been achieved. Following a review by the RNGC andthe Board of Directors in February 2024 this assessment resulted in an overall achievement level of 135%.
Individual Component

WeightAchievement

Outcome element

90%

133%

Top Company Objectives(communicated to all employees of the Company and shared with the Executives
and Managers of the Company)

30%

120%

Individual objectives(how the CEO contributes to the success of the Company)

60%

140%

Behaviour element

10%

150%

2023 CEO’s Individual Component performance achievement

135%

The Individual Component has been assessed according to two sets of complementary elements:

I. Outcomes element
The outcome element is composed of:–– The Top Company Objectives: accounting for 30% of the total CEO Individual Component, which are shared with Executives
and Managers of the Company to promote collective alignment;
In 2023, there was an intention to create a truly shared spirit of collective engagement and solidarity across the Commercial Aircraftbusiness towards the ultimate operational target consisting of reaching the delivery guidance, hence increasing the Company’s
productivity and efficiency. It translated into an individual objective shared by around 6,000 key contributors to the Commercial
Aircraft business.
Despite a complex operational environment, 735 aircraft were delivered (versus a guidance of around 720) in 2023.
–– The CEO’s Individual objectives: accounting for 60% of the total Individual Component, they encompass various aspects ofwhat the CEO can do to contribute to the success of the Company, such as specific business results he achieves, projects hedrives and processes he improves.
As disclosed in the 2022 Universal Registration Document, published in April 2023, the individual priorities of the CEO for 2023
comprised: operational performance, market position in commercial aviation, major European defence programmes, Environment,
Social and Governance topics, Digital and Decarbonisation roadmap, leadership team development and portfolio management.

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4. Corporate Governance
4.2 Interests of Directors and Principal Executive Officers

OVERVIEW OF THE 2023 CEO’S INDIVIDUAL OBJECTIVES:
2023 CEO’s
Individual
objectives

WeightAchievement

5%

The Board after reviewing the following factors in detail considered that the Operational performance objective of the
CEO was overachieved:
Over the past year, under the leadership of the CEO, the Company successfully added flexibility to the A320neo
Family production by making all Final Assembly Lines (“FAL”) sites A321neo capable. This increased A321 production 140%
flexibility throughout its global industrial production system will enable the Company to better respond to market
recovery and future demand needs, being close to major customers and growth regions. In 2023, both the Tianjin
and Toulouse FALs delivered their first A321s.

15%

The Board after reviewing the following factors in detail considered that the market position in commercial aviation
objective of the CEO was overachieved:
The year 2023 demonstrated a higher overall order intake compared to last year with more than 2,300 commercial
200%
aircraft gross orders, further consolidating the Company’s position as market leader for the fifth consecutive year.
This also included major developments on the widebody market with 11 new widebody customers in 2023 and thehighest number of sales for the A350 in one year to date with 285 orders.

10%

The Board after reviewing the following factors in detail considered that the major European defence programmes
objective of the CEO was partially achieved:
In 2023, the Military Air Systems (including FCAS) business performed really well under the CEO’s leadership enablingthat all deliveries and programme milestones were met, except for the Eurodrone that is facing some unforeseen
delay.
The Space business did not perform as expected. While the major milestones were met for a number of programmes(including successful launches) the performance was impacted by charges resulting from the update of Estimates atCompletion.

10%

The Board after reviewing the following factors in detail considered that the environment, social and governancetopics objective of the CEO was overachieved:
Under the CEO’s impulsion, a dedicated Chief Sustainability Officer organisation was created at the end of the year
to supervise and coordinate all aspects of the Company’s sustainability ambition.
2023 was also a year marked by the activation of the Sustainable Aviation Fuel (“SAF”) ecosystem to contribute to theCompany’s SBTi validated target.
Among the highlights, a number of agreements were reached and signed for SAF development in China (SPIC,SINAF) and in the US (with LanzaJet). Multiple partnerships were also established to support the emergence of newtechnological pathways for the production of SAFs in Australia (Jetzero) and in the US (DGfuel).
Under a strong tone from the CEO, the Company strives to accelerate female representation in leadership roles. 150%
It includes slots in dedicated leadership programmes, aimed at development of leaders selected from across various
geographies and functions. In 2023, the percentage of female representation on executive positions reached 20% as
per the target, representing a 4% increase as compared with 2022. The Company is committed to pursuing efforts,
focusing on leadership programmes, mentorship, sponsorship, targeted recruitment and strengthening promotions
pipeline to enhance female representation in executive positions.
In October 2023, after extensive efforts deployed throughout the organisation under the CEO’s impulsion, the Company
received notice from the US State Department that the Consent Agreement it had entered into in January 2020 had
been closed, based on fulfilment of its terms. This important step concluded a three-year probation period during
which Airbus demonstrated to the authorities its commitment to compliance and integrity.

10%

The Board after reviewing the following factors in detail considered that the digital objective of the CEO was
overachieved:
Digital Design, Manufacturing & Services (“DDMS”) is a digital-first approach to the way aerospace products aredesigned, manufactured and operated. The DDMS programme focuses on digital methods and tools for end-to-end
business processes. DDMS is a Company wide transformation programme implemented under the CEO’s leadership.
125%
Over the past year, the major milestones for “DDMS for Single Aisle” and “DDMS Next” (for future programmes)
reached successful completion. In doing so, 417 capabilities were delivered, more than 20,000 people were trained
and 5,497 new users were onboarded.
The CEO implemented the “Smartphone for all” initiative aiming at providing a smartphone to all employees of theCompany. 62,000 users were equipped which helped decommission 45,000 fixed phones.

Leadershipteam
development
and portfolio
management

10%

The Board after reviewing the following factors in detail considered that the leadership team development andportfolio management objective of the CEO was overachieved:
The CEO decided to appoint a dedicated Commercial Aircraft business management team under the helm of
Christian Scherer.
The new organisation serving two objectives:(i) reinforcing the Company’s focus on the operational business and (ii) allowing the CEO to focus his attention on the
Company’s overall strategy and to drive its transformation across the group-wide businesses.
The CEO continued to successfully conduct active portfolio management focusing on supply chain support(acquisition of Aubert & Duval together with Tikehau Capital and Safran), decarbonisation (Jet Zero Australia
investment, aircraft lifecycle services centre in China, partnering with DG Fuels, ZeroAvia investment) technologies(acquisition of Sobotech, planned acquisition of Aerovel) and services (contemplated components support JV with
Air France, HMotion simulation training center JV project with ADAC HEMS).

Total 2023
CEO’s
Individual
objectives

60%

Operational
performanceMarket positionin commercial
aviation

Major European
defenceprogrammes

Environment,
Social andGovernancetopicsDigital

90%

100%

140%

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44. Corporate Governance
4.2 Interests of Directors and Principal Executive Officers

II. Behaviour element
The CEO behavioural element accounts for 10% of the total Individual Component and refers to the way results have been achieved,
which is also critical for long-term success: how the CEO and the Board of Directors work as a team, how the CEO leads the
Executive Committee, his communication skills, his appetite for innovation and for driving changes.
With his extensive operational knowledge, his global outlook and strong personal values, the CEO has demonstrated throughout
the year, despite the various challenges, an exceptionally resilient mind-set and personal skills to successfully lead the Company.
For the year 2024, the Board has set the following priorities for the CEO:
1. implement strategy, including but not limited to portfolio optimisation for value creation;
2. execute the product roadmap balancing short term and long term goals;
3. improve our geopolitical resilience in a more fragmented world;
4. be the catalyst for future European aerospace cooperation and Protect and deliver major defence programmes milestones;
5. drive organisational change and develop the leadership team for the future;
6. enable execution on our Digital and Decarbonisation roadmap;
7. oversee and ensure the Commercial Aircraft ramp up and guidance.

d) Long-Term Incentive Plan
2023 Grant
In 2023, 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
2023 pursuant to the LTIP:
SHARE PLAN: NUMBER OF PERFORMANCE SHARES

Guillaume Faury

Granted in 2023

Vesting dates

11,619Vesting schedule is made up of 1 tranche expected in May 2027

The grants in 2023 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 2023 will vest
in one tranche in May 2027.

Vesting Values in 2023
In 2023, the CEO received both cash payments and vested shares in connection with the vesting of 2018 and 2019 LTIP awards:–– cash: the total cash payment to the CEO amounted to € 304,862 in 2023;–– shares: in connection with the 2019 LTIP award, the CEO received 2,765 vested shares on 11 May 2023.

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4. Corporate Governance
4.2 Interests of Directors and Principal Executive Officers

LTIP overview: granting and vesting

NumberShare priceat grant

Value atgrant date

Performanceachievement

Units withperformanceachievement

Unit

4,208

€ 106.94€ 450,004

50%

2018

Share

4,208

€ 106.94€ 450,004

2019

Unit

5,530

€ 122.06

2019

Share

5,530

2020

Unit

2020

Date ofgrants

Grant
Type

Dates ofvesting

Share value atvesting dates(1)

2018

2,104

2 vestings in
2022-2023

1st vesting
12 May 2022
€ 105.15

50%

2,104

1 vesting in
2022

12 May 2022
€ 104.4€ 674,992

50%

2,766

2 vestings in
2023-2024

11 May 2023
€ 125.20€ 122.06€ 674,992

50%

2,765

1 vesting in
2023

11 May 2023
€ 122.04

9,920€ 68.04€ 674,957

150%

14,8802 vestings in
2024-2025

Not yet known

Share

9,920

€ 68.04€ 674,957

150%

14,8801 vesting in
2024

Not yet known

2021

Share

12,121€ 111.38€ 1,350,037

Not yet known

Not yet known

1 vesting in
2025

Not yet known

2022

Share

14,115€ 105.20€ 1,484,898

Not yet known

Not yet known

1 vesting in
2026

Not yet known

2023

Share

11,619€ 127,81€ 1,485,024

Not yet known

Not yet known

1 vesting in
2027

Not yet known

Calculations may involve rounding to the nearest unit.
(1) Vesting will occur according to the respective rules and regulations of each plan.
100% of units and shares granted are conditional to the achievement of performance conditions
NOTE: 2017 to 2018 awards were granted to Mr Faury before his appointment as CEO and should vest during his mandate. Calculations may involve rounding to the nearest unit.

Performance Conditions of LTIP 2020–– The performance conditions for LTIP 2020 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 2021, 2022 and 2023
fiscal years, with the three-year Ave EPS target for an allocation of 100% equal to € 2.52; and–– 25% of cumulative FCF (“Cum FCF”): determined on a linear basis depending on three-year Cum FCF for the 2021, 2022 and2023 fiscal years, with the three-year Cum FCF target for an allocation of 100% equal to € 1,951 million.

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44. Corporate Governance
4.2 Interests of Directors and Principal Executive Officers

Review of Achievement of Performance Conditions
In February 2024, the Board of Directors noted the achievement of the performance conditions of the 2020 plan, i.e. for the 2021,
2022 and 2023 fiscal years. The three-year average EPS was € 5.19 and the three-year Cum FCF was € 11,720 million.
The overperformance of the 2020 plan is due to a faster than expected recovery from the COVID 19 pandemic. As a reminder, the2020 plan was granted in October 2020 when the impact of the pandemic for the years 2021, 2022 and 2023 was still extremely
difficult to predict.
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 ofgrants2018

KPI

Numberof units

Ave EPS

8,416

Cum FCF2019
2020

Ave EPS

11,060Cum FCFAve EPS
Cum FCF

19,840Target for
a 100%
allocation

Performanceachievement in
Achieved
percentage€ 6.73€ 2.2750%€ 13,000m€ 3,230m

50%€ 7.72€ 3.1050%€ 13,150m€ 4,320m

50%€ 2.52(5)€ 5.19150%€ 1,951(5)€ 11,720

150%

Compounded
performanceachievement inpercentage

Resultingvesting in
numberFor comparison,
average EPS for thelast 3 reported years
at the date of grant

50%

4,208

€ 2.81(2)

50%

5,530

€ 2.98(3)150%

29,760€ 2.27(4)(1) Average EPS of 2016, 2015 and 2014.
(2) Average EPS of 2017, 2016 and 2015.
(3) Average EPS of 2018, 2017 and 2016.
(4) Average EPS of 2019, 2020 and 2021.
(5) Please note that this target was set during the COVID pandemic, and reflects the difficulty in accurately forecasting the performance of the Company’s businesses during that period.

Based on the above, the ratio between the fixed part of
the remuneration of the CEO in 2023 (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 2023 paid-out in 2024 andLTIP vesting in 2023) is 47% / 53% (2022: 48% / 52%).

e) Share Ownership
The CEO owned 29,364 Airbus SE shares on 31 December
2023 which represents a value higher than 200% of his Base
Salary, in compliance with the Share ownership guideline (see“– 4.2.1.1. f. – Share ownership guideline”). Please refer to the
AFM website www.afm.nl for any further information related tothe transactions of the CEO.

f) Employee Share Ownership Plan (ESOP)In March 2023, 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 50%. 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 2023, a dedicated UK tax
advantageous Share Incentive Plan (“SIP”) was also deployedin March 2023.
Although the CEO was eligible for the plan, he did not participate
in the ESOP 2023 plan, leaving more shares for employees inorder to favour the development of employee shareholding.

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Universal Registration Document 2023

g) Benefits
Costs of benefits provided through applicable mandatory
collective and social security plans are accounted for amongsocial charges (please refer to Note 33 to the IFRS Consolidated
Financial Statements for further details). The monetary value ofother benefits provided to the CEO in 2023 amounts to € 34,969(vs € 32,734 in 2022).

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.
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.

4. Corporate Governance
4.2 Interests of Directors and Principal Executive Officers

As of 31 December 2023, the defined benefit obligation related to
the frozen defined benefit commitment amounted to € 3,875,518(2022: € 6,895,263). This obligation has been accrued in the 2023
Consolidated Financial Statements and will be updated annually
up to the retirement date of the CEO considering additional
service cost and future changes on economic assumptions orother factors like salary increase.
The decrease in the defined benefit obligation is mainly due to thechange in retirement age following the pension reform in France
in 2023. This change has been considered as a plan amendment
and leads to the recognition of a profit in EBIT.
For the fiscal year 2023, the cost related to the CEO’s
pension rights accrued under Company’s plans during theyear represented a net profit of € 1,049,054 composed by an
expense of € 1,404,951 and the effect of the French pension
reform leading to a release of provision of € 2,454,006 (2022:
expense of € 1,385,222).
The annual cost of pension rights accrued under applicablemandatory collective and state pension plans are accounted
for among social charges (please refer to Note 33 to the IFRS
Consolidated Financial Statements for further details).

i) Clawback
The Board of Directors did not apply any clawback in 2023.

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
employees, which is derived from the number of employees andthe personnel expenses disclosed in the Financial Statements(see Notes 28 and 29).
The ratio between the compensation of the CEO (includingbase salary, variable remuneration, social charges, benefits,pension contributions and LTIP grant face value) and the averagecompensation of full-time equivalent employees for the fiscal
year to which this document relates is approximately 70 (2022:
74; 2021: 56; 2020: 64; 2019: 64).(1)k) Severance
No payment has been made to the CEO in 2023 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.

l) 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

2023

2022

2021

2020

2019

1,485

1,485

1,350

1,350

1,392(1)

I. CEO’s direct cash compensation
Annual Base Salary (in € thousand)VR (in € thousand)

2,042

2,241

1,404

1,553

2,318

Total

3,527

3,726

2,754

2,903

3,710

Annual Variation

-5,3%

+35%

-5.1%

-21.8%+1.1%

II. Long Term Incentive Plan (in € thousand)(3)

1,485

1,485

1,350

1,350

1,350

EBIT Adjusted (in € million)

5,838

5,627

4,865

1,706

6,946

Annual Variation

+4%

+16%

+185%

-75%

+19%

FCF before M&A and customer financing (in € million)

4,386

4,680

3,515

(6,935)

3,509

Annual variation

-8%

+33%

n.a

-298%

+21%

IV. Employee Compensation (in € thousand)(4)

81.8

79.1

71.6

72.0

75.1

+3.2%

+10.5%

-0.6%

-4.1%

+2.0%

(2)

III. Company Performance

Annual Variation(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 2021 financial year, the amount presented has
been adjusted based on final figures. For the 2022 financial year, the amount presented is still an estimate and will be adjusted next year.

(1) In order to align with the newly added explanatory notes to best practice provision 3.4.1 of the Dutch Code, the pay ratio shown in this section has been calculatedon the basis of total full-time equivalent headcount, rather than total permanent employees (as was done in the past). As a result thereof, the pay ratio presented inthis Universal Registration Document for the financial years 2019, 2020, 2021 and 2022 is different than presented in the Universal Registration Documents oversuch previous years. The ratios presented have been rounded to the nearest integer.

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44. Corporate Governance
4.2 Interests of Directors and Principal Executive Officers

4.2.1.4 Implementation of the Remuneration Policy in 2023: Non-Executive Directors
This section describes how the Remuneration Policy was
implemented in 2023 with respect to the Non-Executive
Directors. In line with the Remuneration Policy, its implementation
aims at ensuring fair compensation and protecting theindependence of the Board Members. Their remuneration should
be commensurate to the time spent and the responsibilities of
their role on the Board of Directors.
The CEO is the only Member of the Board of Directors who is
not entitled to any Board or Committee fee.
From 1 January 2023, and in application of the Remuneration
Policy, the Board, upon recommendation of the RNGC, decided
to increase the Board and Committees fixed fees as described
below. The applicable attendance fees for Board and Committee
meetings remain unchanged as respectively set in 2016 and2019.
This decision has been taken after due consideration of theincreased responsibility, complexity and related time commitment
since the last remuneration review in 2016, the outcome of
the benchmark conducted by an independent third party, theCompany’s unique international profile and of the necessity toremain competitive to attract the best talents.
The benchmark was performed in September 2022 by anindependent advisor, Egon Zehnder, at the RNGC request,
based on a global peer group of 80 large-scale corporations(2),where Airbus’ market capitalisation and revenues fall within thethird quartile.
The group of companies considered in the benchmark analysis
is broader than the peer group used to position the CEO’scompensation. This divergence is justified considering that the
purpose of this analysis was to ensure that Airbus’ non-executive
pay practices remain suitable and competitive on a global scale,enabling the attraction of specific and diverse expertise beyond
its industry and geographical footprint, as illustrated by thecurrent Board composition.
Furthermore, in view of (i) Non-Executive Directors and Executive
Directors having distinct profiles, (ii) Non-Executive Directors’
and Executive Directors’ pay not being directly comparable, and(iii) Non-Executive Director pay practices varying significantly
between countries, the expanded scope in this specific exercise
is justified.

However, and to remain consistent with Airbus’ approach andprofile, approximately 88% of the companies considered areeither registered in the Netherlands or in Airbus’ core countries(France, Germany, Spain and UK).
With the implemented increase, the level of fixed fees is consistent
with market practice, yet still below average, and aligned with
the Company’s positioning -based on market capitalisation andrevenues- within the peer group as per the benchmark referred
to above.
a) Board fees:–– fixed fee for membership of the Board of Directors (€ / year):–– Chair of the Board: 500,000,–– Member of the Board: 120,000;–– attendance fees (€ / Board meeting):–– Chair: 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 (€ / year):–– Chair: 60,000,–– Member of a Committee: 30,000;–– attendance fee for membership of a Committee, applicable tochair and members € / 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.
Following the decision made by the Board to increase theremuneration of the Chairman of the Board as of 1 January2023, René Obermann decided to donate to several charitableorganisations the net (after relevant income tax) portion of his
2023 fixed remuneration as Chairman of the Board in excess of
the amount of fixed remuneration he received in 2022.

(2) Peer group:
3M, A.P. Moller – Maersk A/S, AB Volvo, ABB, Accenture, Ahold Delhaize, Air Liquide, Aon, Bae System, Banco Bilbao, BASF, BAT, Bayer, BMW, Bombardier,
BP, Caterpillar, Chevron, Continental, Credit Suisse, Daimler, Danone, Dassault Systèmes, Deutsche Post, Deutsche Telekom, DIAGEO, E.ON, Endesa, Engie,
Exxon Mobil Corp, Fedex, Ferrovial, Ford Motor, Fortum Oyj, GE, General Dynamics Corporation, GSK, Heineken, Henkel, Honeywell International Inc., Iberdrola,IBM, INDITEX, ING, Koninklijke DSM NV, Leonardo, Lockheed Martin Corporation, Mckesson Corp, MTU Aero Engines AG, Naturgy, Nestle, Northrop Grumman
Corporation, Novartis, NXP Semiconductors, Raytheon Technologies Corporation, Renault, Repsol, Rio Tinto, Roche, Rolls Royce, Safran, Saint-Gobain, Sanofi,
Santander, SAP, Schneider Electric, SHELL, Siemens, Sodexo, Stellantis, Telefonica, Tesco, Thales, The Boeing Company, Total, Unilever, Unitedhealth Group,
Vinci, Vodafone, Volkswagen.

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4. Corporate Governance
4.2 Interests of Directors and Principal Executive Officers

The remuneration of the Non-Executive Members of the Board of Directors was as follows:
2023

2022

2021

2020

2019

AttendanceFees(2)

Total

Fixum(1)AttendanceFees(2)

Total

Total

Total

Total

500,000(3)105,000

605,000(3)225,000

135,000

360,000

300,000

193,988

202,000

150,000

62,000212,000

100,000

66,000166,000

143,000

178,000

207,000

Jean-Pierre Clamadieu

210,000

76,000286,000

140,000

96,500236,500

197,000

217,087

219,176

Ralph D. Crosby, Jr.

150,000

70,000220,000

100,000

100,000

200,000

161,000

183,000

208,500

Mark Dunkerley

180,000

94,000274,000

124,420

112,000

236,420

166,000

118,879-

Stephan Gemkow

150,000

76,000226,000

110,000

98,000208,000

163,000

128,879-

Catherine Guillouard

210,000

63,000273,000

140,000

98,000238,000

197,500

223,000

222,765

Amparo Moraleda

210,000

69,500279,500

140,000

103,000

243,000

184,500

215,000

235,000

Claudia Nemat

150,000

56,500206,500

100,000

76,500176,500

156,500

180,000

174,500

Irene Rummelhoff

150,000

55,000205,000

72,10075,000147,100---

Antony Wood(4)141,050

70,000211,050

3,913

10,00013,913---225,000

Fixum(1)(In €)

Non-Executive Board Members
René Obermann
Victor Chu

Former Non-Executive Board Members
Lord Drayson(5)

-

-

-

33,811

15,00048,811

169,500

200,000

Carlos Tavares

-

-

-

22,541

5,000

27,541125,000

150,000-

96,731

311,000-

70,274200,235(6)

Denis Ranque(7)Hermann-Josef Lamberti

Total

(8)

2,201,050

797,000 2,998,050 1,311,785

145,000

990,000 2,301,785 1,963,500 2,154,838 2,350,176(1) Fixum includes a base fee for Board membership and the relevant Committee membership as the case may be (Audit Committee, Remuneration, Nomination and GovernanceCommittee (“RNGC”) and Ethics, Compliance and Sustainability Committee (“ECSC”)). The fixum for the year 2023 was paid 50% in January 2023 and 50% in July 2023.
The fixum for the year 2022 was paid 50% in January 2022 and 50% in July 2022 except in relation to the ad hoc Committee for which the full amount was paid in January 2023.
(2) 2023 attendance fees include the Board attendance fees and the fees in relation to the relevant Committee (Audit Committee, RNGC and ECSC) meetings. The Board attendancefees related to the first semester 2023 were paid in July 2023, those related to the second semester 2023 were paid in January 2024. The Committees’ attendance fees related
to the full year 2023 were paid in January 2024.
(3) Amount before donation of the portion exceeding the fixed remuneration perceived in 2022 as mentioned above.
(4) Member of the Audit Committee since 19 April 2023.
(5) Member of the Board of Directors, the RNGC and the ECSC until 12 April 2022.
(6) Member of the Board of Directors until 12 April 2022.
(7) Chairman of the Board of Directors and of the former Ethics & Compliance Committee until 16 April 2020.
(8) Member of the Board of Directors and the Audit Committee until 16 April 2020.

The total aggregate remuneration (i.e. fixum and attendance fee) of the Non-Executive Members of the Board of Directors wasrespectively € 1,963,500 in 2021, € 2,154,838 in 2020, and € 2,350,176 in 2019.

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,
such as the 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 takenout liability insurance (“D&O” – Directors & Officers) covering thepersons concerned.

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Airbus Annual Report 257

44. Corporate Governance
4.2 Interests of Directors and Principal Executive Officers

4.2.2 Long-Term Incentives Granted to the Chief Executive Officer
See “– 4.3.3 Long-Term 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 2021, 2022 and 2023, 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”

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for the year-ended 31 December 2023, “Notes to the IFRS
Consolidated Financial Statements – Note 11: Related party
transactions” for the year-ended 31 December 2022, “Notes tothe IFRS Consolidated Financial Statements – Note 10: Related
party transactions” for the year-ended 31 December 2021, as
incorporated 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. Corporate Governance
4.3 Employee Success Sharing and Incentive Plans

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.

4

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 2023 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 issuance2021€ 89.52(1) / € 93.90(2) / € 114.90(3)€1€11,871,546
62,87418 March 2021
18 October 2021

2022

€ 114.01(1) / € 117.88(2) / € 99.10(3)€1€12,052,236
68,80917 March 2022
18 October 2022

2023

€ 116.68(1) / € 119.06(2) / € 126.30(3)€1€12,190,603
63,82317 March 2023
18 October 2023

(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.

In 2023, the Board of Directors approved a new ESOP scheme,
like in 2022.

In 2023, the Company issued and sold 1,355,411 ordinary shares(2022: 1,296,252) with a nominal value of € 1.00 each.

Eligible employees were able to purchase a fixed number ofpreviously unissued shares at fair market value (5, 10, 15, 30,
60 or 100 shares in 2023 and 2022). The Company matchedeach fixed number of shares with a number of the Company
free shares based on a determined ratio (5, 9, 12, 20, 35 and 55
free shares, respectively in 2023 and 2022). During a custodyperiod of at least one year, employees are restricted from sellingthe shares, but have the right to receive all dividends paid.
Employees who directly purchased the Airbus SE shares have,in addition, the ability to vote at the Annual Shareholder Meetings.
The subscription price was equal to the closing price at the Paris
stock exchange on 15 February 2023 (2022: 16 March 2022)
and amounted to € 119.06 (2022: € 106.82). Investing througha mutual fund led to a price which corresponds to the average
price at the Paris stock exchange during the 20 trading days
immediately preceding 15 February 2023 (2022: 16 February2022), resulting in a price of € 116.68 (2022: € 114.01).

In 2023, the Company issued and distributed 899,015 matchingordinary shares (2022: 824,793) with a nominal value of € 1.00
each. Compensation expense (excluding social security
contributions) of € 112 million (2022: € 82 million) was recognisedin connection with ESOP in 2023.
The Company intends to implement an ESOP in 2024, 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 issuanceof shares or distribution of shares from the Company’s treasury
stock or other existing or new securities giving access to thecapital as a matching contribution. This plan would aim at
favouring the development of employee shareholding.

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Airbus Annual Report 259

4. Corporate Governance
4.3 Employee Success Sharing and Incentive Plans

4.3.3 Long-Term Incentive Plans
Since 2016, the Company operates a Performance Units and Performance Shares Plan. Performance Units qualify as a cash-settled
share based payment plan under IFRS 2 and Performance Shares qualify as an equity-settled share-based payment plan under
IFRS 2. Since 2022, the Company operates only a Performance Shares Plan.
The principal characteristics of these Performance Units and Performance Shares as of 31 December 2023 are set out in the “Notes
to the IFRS Consolidated Financial Statements – Note 32: Share-based payment”. They are also summarised in the tables below:

Grant date(1)Performance Units/Shares
Number of units/shares granted(2)

Number of units/shares granted
through Equity Pool(4)Number of units/shares
outstanding(5)LTIP 2018(7)LTIP 2019(8)LTIP 2020(9)LTIP 2021

30 October
2018

29 October
2019

28 October
2020

15 December 14 December 13 December
2021
2022
2023

LTIP 2023

Units

SharesUnits

SharesSharesSharesSharesShares278,376

281,181247,508

247,508 420,004 420,004

520,870649,373

558,055

6,664

6,664

4,343

4,252

2,473

19,693

19,747---55,050-575,805 575,805

512,255

658,409558,055

1,603

1,785

1,579

1,581

Total number of eligible
beneficiaries

1,626

Units

LTIP 2022

2,473

1,576

Number of accelerated vested
units/shares(10)

-

-

-

-

404

404

247

-

-

Number of vested units/shares

130,089

132,120

55,982

109,802

-

-

-

-

-

-- Units/shares granted to:-- Mr Guillaume Faury*-- the ten employees having been

4,208

4,208

5,530

5,530

9,920

9,920

12,121

14,115

11,61923,57826,38328,05828,05848,61048,61061,41264,48960,160

granted the highest number ofunits/shares during the year

(1) Date, when the vesting conditions were determined.
(2) Based on 100% target performance achievement. A minimum of 50% of Performance Units will vest; 100% in case of on-target performance achievement; up to a maximumof 150% in case of overachievement of performance criteria. In case of absolute negative results (cumulative EBIT of the Company) during the performance period, the Board of
Directors can decide to review the vesting of the Performance Units including the 50% portion which is not subject to performance conditions (additional vesting condition).
(3) Values are provided for units corresponding per vesting date.
(4) Mirroring the respective plan rules and regulations, but granted at a different date based on specific Board of Directors’ resolutions.
(5) Including shares granted through the Equity Pool, if applicable and applicable performance achievement as per note 7,8,9 below.
(6) Corresponds to 200% of the respective reference share price. Overall, the pay-out for Performance Units is limited to a total amount of 250% of the units originally granted, eachvalued with the respective reference share price of € 73.81 (for LTIP 2017), € 106.94 (for LTIP 2018), € 122.06 (for LTIP 2019), € 68.04 (for LTIP 2020).
(7) Based on performance achievement of 50% for Performance Units under LTIP 2018.
(8) Based on performance achievement of 50% for Performance Units under LTIP 2019.
(9) Based on performance achievement of 150% for Performance Units under LTIP 2020.
(10) Accelerated vesting following the death of a beneficiary.
* For more information in respect of units and shares granted to the Chief Executive Officer, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 33:
Remuneration”.

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”.

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4. Corporate Governance
4.3 Employee Success Sharing and Incentive Plans

SHAREHOLDING IN THE COMPANY OF THE MEMBERS OF THE BOARD OF DIRECTORS AT THE END OF 2023
Member of the Board of Directors

Shareholding-- Mr Guillaume Faury-- Mr Jean-Pierre Clamadieu-- Ms Amparo Moraleda-- Ms Irene Rummelhoff-- Ms Catherine Guillouard-- Mr Ralph Dozier Crosby, Jr.

29,364 ordinary shares
2,000 ordinary shares
1,700 ordinary shares
328 ordinary shares
185 ordinary shares
10 ordinary sharesNo other Member of the Board of Directors holds shares or other securities of the Company.

4

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Airbus Annual Report 261

Chapter 5262

Airbus / Annual Report – Universal Registration Document 2022

5
GeneralInformation
5.1

Entity Responsible for
the Universal Registration Document264

5.2Statement of the Entity Responsible for
the Universal Registration Document

264

5.3

Information Policy

264

5.4

Undertakings of the Company Regarding Information

265

5.5

Significant Changes

265

5.6

Statement on Approval

265

Airbus / Annual Report – Universal Registration Document 2022

263

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 the information contained in the document is, to the best of the Company’s knowledge, in accordancewith the facts and contains no omission likely to affect its 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 the AFM without prior approval on 26 March 2021;–– the Registration Document filed in English with the AFM without prior approval on 6 April 2022;–– the Registration Document filed in English with the AFM without prior approval on 4 April 2023; and–– the IFRS Consolidated Financial Statements for the years 2021, 2022 and 2023 together with the related independent 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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Universal Registration Document 2023

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 Universal Registration Document, there has been no significant change in the Company’s financial performanceand there has been no significant change in the Company’s Financial Position since 31 December 2023.

55.6 Statement on Approval
This Universal Registration Document has been filed with the AFM on 27 March 2024 in its capacity as competent authority under
the Prospectus Regulation without prior approval pursuant to Article 9 of the Prospectus Regulation. This Universal 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 approved by the AFM together with any amendments, if applicable, and a securities note and summary approved inaccordance with the Prospectus Regulation.

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Airbus Annual Report 265

266 Airbus Annual Report

Universal Registration Document 2023

Contact Airbus at:
2 rond-point Dewoitine
BP 9011231703 Blagnac Cedex
FranceAirbus SE
Mendelweg 302333 CS Leiden
The Netherlands