TABLE OF CONTENTSABOUT THIS REPORT pg. ii

ABOUT THIS REPORTA LETTER TO OUR STAKEHOLDERS pg. 1

THIS CORPORATE RESPONSIBILITY REPORT (CSR)
COVERS ENVIRONMENTAL, SOCIAL, AND GOVERNANCE(ESG) TOPICS WHICH PERTAIN TO AEROVIRONMENT’S
BUSINESS AND STAKEHOLDERS. Unless statedotherwise, data presented throughout this reportcovers AeroVironment’s 2023 Fiscal Year (May1, 2022 – April 30, 2023) and refers to its global
operations and activities which are wholly owned
and operated by AeroVironment, with the exceptionof Telerob which is based in Germany and was
acquired in May 2021. Our global integration
efforts with Telerob are ongoing within the broader
AeroVironment organization.

ABOUT AEROVIRONMENT pg. 2
OUR PURPOSE & VALUES pg. 3
PRODUCT INNOVATION & SUSTAINABLE SOLUTIONS pg. 4
CORPORATE SOCIAL RESPONSIBILITY pg. 5
STAKEHOLDER ENGAGEMENT pg. 6
BOARD COMPOSITION & STRUCTURE pg. 9
RESPONSIBLE BUSINESS OPERATIONS pg. 10
INFORMATION SECURITY & DATA PRIVACY pg. 12

The AeroVironment ESG Committee oversees
the creation of this report under the direction of
its company leaders and Board of Directors. The
information presented within this report has beengathered through internal compilation efforts and issubject to reasonable estimation where applicable.
Information has not been subject to third-party orother independent verification as we continue toexplore and develop our ESG program.

RESPONSIBLE SUPPLIER PRACTICES pg. 13

SAFE HARBOR STATEMENTSAFETY AT AEROVIRONMENT pg. 14

CERTAIN STATEMENTS IN THIS Proxy Statement may
constitute “forward-looking statements” as thatterm is defined in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements
include, without limitation, any statement that may
predict, forecast, indicate or imply future results,
performance or achievements, and may containwords such as “believe,” “anticipate,” “expect,”“estimate,” “intend,” “project,” “plan,” or words orphrases with similar meaning. These statements
are made on the basis of current expectations,forecasts and assumptions that involve risks anduncertainties, including, but not limited to, economic,
competitive, governmental and technological factors
outside of our control, that may cause our business,strategy or actual results to differ materially fromthose expressed or implied. For a further list anddescription of such risks and uncertainties, please
visit the SEC Filings section of our website

EMPLOYEE HEALTH, SAFETY & WELLNESS pg. 16
ENVIRONMENTAL MANAGEMENT pg. 18
ENERGY EFFICIENCY pg. 19
WATER USE & CONSERVATION pg. 20
WASTE MANAGEMENT pg. 20
EMPLOYEE WORKFORCE pg. 21
COMMUNITY OUTREACH pg. 27
APPENDICES pg. 28

FOR QUESTIONS REGARDING THIS REPORT, pleasecontact our Investor Relations team athttps://investor.avinc.com/contact-and-faq/contact-us.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. ii

A LETTER TO OUR STAKEHOLDERSAEROVIRONMENT’S PURPOSE IS TO SECURE LIVES AND ADVANCE SUSTAINABILITY THROUGH
TRANSFORMATIVE INNOVATION. We are committed to doing more with less, while
supporting our customers as they perform their vital missions. We do this by following
and honoring the inspiration of our founder, Dr. Paul B. MacCready Jr., who sought toharness the power of human imagination and perseverance.
DESPITE THE HEADWINDS WE FACED LAST YEAR, Fiscal
Year 2023 was an inflection point for the company interms of our long-term strategic vision as we achieved
our highest revenues and backlog in company history,
bolstered by our Switchblade and Puma products. This
marks our sixth consecutive year of top-line growth withrevenue reaching $541M USD, a 21% increase compared
to Fiscal Year 2022. With expanded markets, a newfoundappreciation of our unique capabilities by internationalcustomers, key technology advancements powered bymachine learning, and broad support for our products
here at home, AeroVironment is well-positioned forsuccess.
THIS YEAR, WE CHALLENGED OURSELVES TO PUSH
BOUNDARIES TO EVEN FURTHER HEIGHTS. We celebrated
our award-winning Ingenuity Mars Helicopter as it
woke up from the Martian Winter, continuing its historic
success with NASA’s Jet Propulsion Laboratory.
As of May 2023, it has logged more than 52 successful
flights, surviving 781 sols on the surface of Mars,
far exceeding the initial design objectives.
BACK ON EARTH, we remain committed to helping
sovereign nations protect their homelands andpopulations when their fundamental human right to asafe and peaceful existence is threatened. We strive topreserve lives and are extremely proud of the growing
level of assistance we have provided to our country
and allies in the past year, most notably Ukraine. Two
AeroVironment products currently supporting our
unmanned ground vehicles (UGVs), which are designed
to keep first responders safe as they work to dispose of
dangerous materials and equipment, and our loitering
munition systems, which are designed to accurately
engage adversaries and protect innocent civilians aided
by our patented wave-off technology.
WITHIN OUR INTERNAL OPERATIONS, we are intentionallyfocused on our employees’ whole well-being, knowingthat they remain our company’s most valuable asset
and are the driving force behind our success. We havesuccessfully navigated the challenges of the pandemic
to become a more flexible, successful, and resilientorganization and are proud to once again be certified
as a Great Place to Work®. Over the past year, we havecontinued to expand the reach of our Employee Resource
Groups and are excited to return to a more normal
cadence of employee events and celebrations, including
those for new employees to showcase the company’s
products and share our values.

AEROVIRONMENT ALSO
MAINTAINS ITS focus onenvironmental impacts
both from an operational
and a final productstandpoint. We continue
to gather e-waste fromobsolete equipment
and technology, reusing what we can and properly
disposing of materials that we cannot. The revenues
from this effort are donated back to the community via
the Simi Valley Education Foundation, an ongoing effort
since 2017. Last year, our California facilities began toincorporate clean power sources within their energy
mixes. We are proud to report that these locations arecontinuing with this trend, purchasing 22 to 55 percent
renewably sourced electricity, depending on location andavailability.
FINALLY, this year we conducted an inaugural materiality
assessment to identify ESG topics that are most relevant
and important to our business. Through internal andexternal stakeholder engagement, we determined
the most material topics to our business to inform thedevelopment of our Corporate Social Responsibility
Strategy.
IN ALL ASPECTS OF OUR BUSINESS, AeroVironment
continues to focus on improving people’s lives today andin the future. We remain unwavering in our attention to ourprinciples and our governance. As we continue to push
the boundaries of increasingly sophisticated unmanned
robotic systems and services, we hold steadfast in our
approach to innovating and simplifying our processes andproducts to ensure quality, promote sustainability, andenhance performance while meeting the exacting needsof our customers.
We thank you for your interest in our latest CSR Reportand are excited to continue our sustainability journeywith you and our stakeholders in the future.
Sincerely,

Wahid Nawabi, Chairman, President, and CEO

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 1

ABOUT AEROVIRONMENT
AT AEROVIRONMENT WE DESIGN, DEVELOP,PRODUCE, DELIVER, AND SUPPORT ATECHNOLOGICALLY-ADVANCED PORTFOLIOOF INTELLIGENT, MULTI-DOMAIN ROBOTIC
SYSTEMS AND RELATED SERVICES FOR
GOVERNMENT AGENCIES AND BUSINESSES.

OUR PRODUCT LINES ARE STRUCTURED AS FOLLOWSSMALL UNMANNED AIRCRAFT SYSTEMS (SUAS)
PUMA LE

PUMA 3 AE / RQ-20C

VAPOR 55 MX

IN FISCAL YEAR 2023, WE GENERATED$541M USD IN REVENUE. We categorize
our four product lines into three businesssegments which support commercial,defense, and civil customers.

PUMA VTOLRAVEN B / RQ-11B

MEDIUM UNMANNED AIRCRAFT SYSTEMS (MUAS)
JUMP 20

T-20

REVENUE BY SEGMENTUNMANNED GROUND VEHICLES (UGVs)
telemax FAMILY

tEODor EVO

21%
23%

56%

LOITERING MUNITION SYSTEMS (LMS)SWITCHBLADE 600

SWITCHBLADE 300 / BLOCK 20BLACKWING

MACCREADY WORKS ADVANCED SOLUTIONS (MW)HIGH-ALTITUDE PSEUDO-SATELLITES (HAPS)

Unmanned Systems // SUAS + MUAS + UGVINGENUITY MARS HELICOPTER

Loitering Munition Systems // LMSSUNGLIDER HAPS

MacCready Works Advanced Solutions // MW + HAPSHQAEROVIRONMENTWORLDWIDE LOCATIONS

12 CAMPUSES ACROSS THE UNITED STATES & EUROPE

Simi Valley, CA // Moorpark, CA // Petaluma, CA // San Diego, CA // Lawrence, KS // Huntsville, AL // Arlington, VA
Erie, PA // Wilmington, MA // Centreville, VA // Minneapolis, MN // Ostfildern, Germany

Year
Founded1971

COMPANY SNAPSHOT
Corporate
GlobalHeadquarters
Employees

VA

ARLINGTON

1,279
FULL-TIME

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 2

FY 2023
Revenues$541
MILLION

OUR PURPOSE & VALUESAT AEROVIRONMENT, WE HOLD STEADFAST TO OURSTANDARDS OF CONDUCT ADHERING TO OUR FOUR
CORE VALUES: TRUST AND TEAMWORK, CUSTOMERCOMMITMENT, INNOVATE AND SIMPLIFY, AND
OWNERSHIP AND RESULTS. EVERY EMPLOYEE
THROUGHOUT OUR ORGANIZATION IS GUIDED BY
THESE PRINCIPLES.
AEROVIRONMENT’S PURPOSEBY STAYING TRUE TO OUR CORE VALUES, WE CAN
ACHIEVE OUR PURPOSE – TO SECURE LIVES AND ADVANCESUSTAINABILITY THROUGH TRANSFORMATIVE INNOVATION.

AEROVIRONMENT’S CORE VALUESTRUST AND TEAMWORKWE DEMONSTRATE INTEGRITY AND ETHICAL CONDUCT IN ALL OUR ACTIONS.
WE LISTEN ATTENTIVELY, SPEAK CANDIDLY, AND TREAT OTHERS RESPECTFULLY.
WE WORK TOGETHER AS A TEAM TO WIN.

CUSTOMER COMMITMENTWE WORK VIGOROUSLY TO EARN AND KEEP OUR CUSTOMERS’ TRUST.
WE MAKE A POSITIVE DIFFERENCE IN OUR CUSTOMERS’ LIVES BY UNDERSTANDING,ANTICIPATING, AND RESPONDING WITH AGILITY TO THEIR NEEDS.

OWNERSHIP AND RESULTSWE ACT IN THE INTEREST OF ALL OUR STAKEHOLDERS, BEYOND THAT OF OURSELVES OR OUR TEAMS.
WE TAKE OWNERSHIP AND ARE ACCOUNTABLE FOR OUR OUTCOMES.

INNOVATE AND SIMPLIFY
WE ARE CURIOUS AND RELENTLESS IN THE PURSUIT OF INNOVATIVE SOLUTIONS, AND IMPROVEMENTS.
WE LOOK FOR NEW IDEAS EVERYWHERE AND ARE COMMITTED TO ENSURING THAT THE BEST IDEAS WIN.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 3

PRODUCT INNOVATION & SUSTAINABLE SOLUTIONSAEROVIRONMENT REMAINS ONE OF THE WORLD’S LARGEST MANUFACTURERS OF UNMANNED AIRCRAFT SYSTEMS(UAS), DELIVERING A SUITE OF LOW- AND ZERO-EMISSION, FUEL- AND ENERGY- EFFICIENT, BATTERY-POWERED, AND
STRATOSPHERIC SOLAR-POWERED PRODUCTS. We are constantly breaking new ground in unmanned aircraft systems
to help deliver new advantages that are reliable, flexible, and easy to use. We are committed to developing anddelivering new solutions and capabilities to serve the needs of our customers while defending democracy, protecting
and preserving innocent lives, and minimizing environmental impacts. Our targeted, efficient solutions provide greater
flexibility at lower cost and have increased effectiveness over traditional, manned platforms.

UNMANNED AIRCRAFT SYSTEMS (UAS)
Our family of unmanned aircraft systems has grown over the last
decade to include Puma™, Raven®, JUMP® 20, and VAPOR® 55
MX Helicopter. These units have been adopted by more than 55
allied nations. They are known for their capabilities in battlefield
conditions, including low-altitude intelligence, surveillance, andreconnaissance missions. They deliver real-time color and/or
infrared imagery to ground control and remote viewing stations.

LOITERING MUNITION SYSTEMS (LMS)
AeroVironment’s loitering munition systems provide
long range precision strike capabilities that deter
adversaries while minimizing collateral effects. These
units are small in size and have low acoustic, visual,and thermal signatures, making them difficult to detect
or track. Recently, the U.S. government has approved
the sale our Switchblade® 300 and 600 to more than
30 allied nations, continuing to enhance their security
operations through advanced technology.

UNMANNED GROUND VEHICLES (UGVs)
AeroVironment’s unmanned ground vehicles share a similar
purpose to our UAS and LMS: to keep operators out of harm’s
way. With their advanced, specialized manipulators, UGVs like ourtelemax™ series are used in cases of explosive ordnance disposals,
hazardous materials handling, as well as other specialized
weapons and tactics team operations. UGVs and their rugged,
all-terrain capabilities have been adopted in 45 countries forhomeland security, emergency response, and defense purposes.

AEROVIRONMENT STANDS WITH

THE PEOPLE OF UKRAINE AND ALL OF NATO
We stand for freedom, and we stand with our allies and sovereign nations in their right toprotect their lives and homelands when this fundamental right is threatened.
We are extremely proud of the growing level of assistance we have provided to our allies including Ukraine.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 4

INGENUITY MARS HELICOPTER

IN PARTNERSHIP WITH NASA’S JET PROPULSION LABORATORY (JPL)AEROVIRONMENT DESIGNED AND DEVELOPED THE INGENUITY MARSHELICOPTER CARRIED BY THE MARS PERSEVERANCE ROVER. Since
the arrival of the aircraft on Mars in February 2021, Ingenuity has
exceeded mission expectations by successfully completing more than
50 flights, demonstrating the viability of aerial robots under the mostextreme conditions, including planetary exploration. Having recently
woken from the harsh “Martian winter,” a feat in and of itself, thehelicopter continues to exceed its initial mission and continues
to be used to scout ahead of Perseverance, taking pictures of
the red planet along the way.

Progress of the ongoing mission is tracked on NASA’s website.

CORPORATE SOCIAL RESPONSIBILITYOUR APPROACH TO CORPORATE SOCIAL RESPONSIBILITY
AT AEROVIRONMENT, WE ARE AWARE OF OUR IMPACT ON THE WORLD AND ARE DEDICATED TO CONDUCTING BUSINESSWITH THE ENVIRONMENT IN MIND. We incorporate innovative, future-forward technologies into our products to help
conserve energy and resources, and protect lives. We set our Environment, Social, and Governance (ESG) goals andpolicies in alignment with our Core Values. We expect our shareholders, clients, suppliers, and other stakeholders todemonstrate similar values and priorities.
OUR CROSS-FUNCTIONAL INTERNAL ESG Committee has
been tasked with advancing AeroVironment’s ESG goals
and initiatives. This team, led by our Senior Director,
Corporate Development and Investor Relations, meetsquarterly to review progress and evaluate potential new
initiatives. This Committee is also responsible for sharing
progress with the Board of Directors on a recurring basis.
Our Board’s Nominating and Corporate Governance (NCG)
Committee provides oversight to the ESG Committee.
WE CONTINUE TO BUILD out our Corporate Social
Responsibility programs, enhancing our commitments
to sustainability and transparency. In this report, weare sharing information and accomplishments todemonstrate our progress thus far, knowing that ourjourney is only just getting started.

”AeroVironment’s culture, processes,
and products have enabled us tobe well positioned to respond to avariety of pressing and urgent ESG
concerns. Through our Corporate Social
Responsibility Reports and related
efforts, we are now able to share thisgreat work with our stakeholders andbuild upon these successes in the
future.”– Jonah Teeter-Balin
Head of Investor Relations

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 5

STAKEHOLDER ENGAGEMENT
MATERIALITY ASSESSMENT
THIS YEAR, AEROVIRONMENT ENGAGED A THIRD PARTY CONSULTANT TO CONDUCT OUR FIRST FORMAL MATERIALITYASSESSMENT. The purpose of the project was to identify which ESG topics are most relevant and important to
AeroVironment’s business and stakeholders. The assessment engaged a variety of both internal and external
stakeholders on 27 relevant ESG topics. The feedback gathered was then used to identify which topics are mostimportant to ensuring AeroVironment’s success. The outcomes from this materiality assessment have been used to
inform the content included in this Corporate Social Responsibility report as well as the development of our broader
ESG strategy.

STEP 1:
TOPIC IDENTIFICATIONWE BEGAN OUR MATERIALITY ASSESSMENT BY CONSIDERING TOPICS
FROM A VARIETY OF SOURCES INCLUDING:• ESG disclosures of AeroVironment’s peers,
ESG leaders, and competitors;• Sustainability Accounting Standards Board (SASB) Standards;• Global Reporting Initiative (GRI) Standards;• Industry trends and global ESG topics; and• Other key industry associations and initiatives.

“For our business to thrive, weneed to ensure an ethical culture
throughout our value stream
and product safety for ourcustomers.”

AFTER THE PRELIMINARY TOPIC LIST WAS REFINEDAND TOPICS WERE GROUPED INTO THREE CATEGORIES:ENVIRONMENTAL, SOCIAL, AND GOVERNANCE.

– Kevin McDonnell,
Sr. Vice President and CFO

STEP 2:STAKEHOLDER IDENTIFICATION AND ENGAGEMENTAS PART OF OUR PROCESS, we developed a comprehensive list of relevant internal and external stakeholder groups,
organizations and individuals to provide insights during the materiality assessment. Stakeholders were selected if they
were identified as having interest and influence upon AeroVironment’s sustainability activities, including their ability tocapture candid and complete perspectives.
STAKEHOLDERS WERE GROUPED into two types of engagement: direct interview and web-based survey. Six stakeholderinterviews were conducted to understand material topic priorities, context around corporate social responsibility
within business operations, and stakeholder-specific priorities. Ninety internal and external stakeholders were
engaged via survey. Stakeholders were requested to prioritize topics through use of context setting questions,
including questions pertaining to the financial value and perceived impact of ESG topics based on AeroVironment’s
business operations.

STEP 3: VALIDATIONFOLLOWING COMPLETION OF the surveys and interviews, topics were assessed in terms of stakeholder priorities.
This step allowed us to evaluate and determine which topics are most likely to be material to AeroVironment.
WITH THE COMPLETION of this project, we gained a stronger understanding of where we are on our ESG journey andare in better position to evaluate new goals, targets, and initiatives.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 6

MATERIALITY MATRIX

Data Privacy &Cybersecurity

Corruption and Bribery
Waste Management

Board Composition
& Structure

Energy Management(Hazardous & Non-Hazardous)

Ethics &Transparency

Polution(Water, Air, and Land)

Product Design & Lifecycle Management
Impact of Products and Services
on the Right to Life and Liberty

Talent Attraction, Retention, and Development
Employee Health, Safety, and Wellbeing

Asset Integrity andCritical IncidentManagement

Fuel Economy and Emissions in Use-Phase

Community Engaement

External Stakeholder Priority

Product Responsibility

Environmental Impacts
of Raw Materials

Child Labor

Diversity, Equity and Inclusion

Access to Technology

Fair and Equitable Wage Practices
Forced Labor and Modern Slavery

Responsible Sourcing
Water Use
Anti-Trust and Anti-Competition
Biodiversity & Habitat Loss
Climate Adaptation, Resilience, and Transition

Freedom of Association andCollective Bargaining

Financial Value Matrix

Sustainability Category
Environmental - GREEN
Social - BLUE
Governance - YELLOW
Financially Material - RED OUTLINEInternal Stakeholder Priority

MOST MATERIAL TOPICS IDENTIFIED
TOPIC

DEFINITION

Access to Technology

The development of products that support and promote the distribution and access of telecommunications technology to undeserved
peoples and regions.

Asset Integrity & Critical
Incident Management

The prevention and control of incidents that can lead to fatalities, injuries, or ill health, environmental impacts, and damage to local
communities and infrastructure.

Corruption and Bribery

Importance of upholding the strong business values that have no tolerance for corruption or bribery within AeroVironment’s operations
or value chain. Corruption is the abuse of entrusted power for private gain and includes practices such as bribery, facilitation payments,
fraud, extortion, collusion, and money laundering.

Data Privacy &Cybersecurity

The risk of ensuring transparent business operations and the commitment to conduct business to the highest standards of ethics andintegrity.

Diversity, Equity, andInclusion

The importance of a diverse, equitable, and inclusive work environment for all employees, regardless of gender identity, national origin,race, color, creed, sexual orientation, or other background characteristics through hiring practices, sponsored programs, and employee
engagement.

Ethics & Transparency

The importance of ensuring transparent business operations and the commitment to conduct business to the highest standards of ethics
and integrity.

Employee Health, Safety,
and Wellbeing

Importance of a culture of complete employee health, safety, and wellness, which incorporates all aspects related to physical and mental
health and ensuring that all employees have access to safe working conditions. Ensuring that all employees have access to training
materials or programs that are appropriate and effective for their job responsibilities.

Environmental Impacts of
Raw Materials

Impacts on the environment caused by processes associated with procuring AeroVironment’s materials, including impacts from raw
material extraction, smelting, and transformation.

Fair and Equitable Wage
Practices

The importance of fair wage practices and commensurate benefits packages for all employees regardless of gender identity, national
origin, race, color, creed, sexual orientation, or other background characteristic.

Pollution

Impacts of AeroVironment’s operations and value chain on normal ecosystem function including air, land, and water pollution.

(Water, Air, and Land)

Product Responsibility

AeroVironment’s commitment to ensuring their products are used in a safe, responsible, and reasonable manner and the practices that
ensure their products are not sold or used by malefactors.

Responsible Sourcing

The impacts of direct and indirect suppliers on workers and communities.

Talent Attraction,
Retention, andDevelopment

Impacts on employees and company performance based on attracting talented individuals and to supporting their personal andprofessional development through industry-leading training, professional development programs, and promoting skill acquisition andworkforce flexibility.

Waste Management

Environmental impacts associated with hazardous and non-hazardous waste generated by AeroVironment. This includes
AeroVironment’s management of solid waste from treatment to handling, storage, disposal, and regulatory compliance. This also includes
waste minimization and waste diversion.

(Hazardous and Non-Hazardous)

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 7

MATERIALITY ASSESSMENT (CONT.)IN ADDITION TO THIS YEAR’S MATERIALITY ASSESSMENT, AeroVironment regularly employs a variety of strategies tomaintain an open dialog across our global stakeholder network. This includes teleconferences, in-person meetings,
facility tours, surveys, and direct communications. We also maintain an open contact form on our company website toreceive general community input, allowing stakeholders to raise concerns.

EMPLOYEESTHE MOST VALUABLE ASSET AND THE DRIVING FORCE BEHIND OUR SUCCESS IS OUR EMPLOYEES. Employees who
participated in the materiality assessment ranked AeroVironment’s core value performances as average to above
average. We believe this reflects how we proactively promote a culture of open communication. Our executives makeit a point to be easily accessible and personally approachable by our employees at any level of the organization. To
ensure we are hearing from our employees, we host online and in-person employee feedback channels, hold monthly
town hall meetings, conduct an annual employee engagement survey, and provide a third-party whistleblower service.

CUSTOMERSWE REMAIN CLOSELY CONNECTED with our customers as
we routinely conduct both in-person and online training
sessions on topics such as product implementation,use, and maintenance. We ask our customers to provide
us with direct feedback allowing us to continuously
improve our products and our training programs. We
receive and analyze all customer feedback, includingthat from our website, direct communication channels,
and our engagement surveys, to track specific customer
success performance metrics. Beginning in 2023, wehave set targets against three new key performanceindicators, including customer satisfaction, first contact
resolution, and average resolution time.

INVESTOR ENGAGEMENT

25+
20+
>100

ANALYST MEETINGSCONFERENCES & ROADSHOWSINVESTOR INTERACTIONSCUSTOMER SERVICEKEY PERFORMANCE INDICATORS
Customer
Satisfaction

Evaluates service experience using
customer support, warranty, training
survey responses, and more.

First Contact
Resolution(FCR)

Evaluates effectiveness of first
customer contact through customer
service channels.

Average
Resolution
Time

Monitors average resolution times
through customer service.

(CSAT)(ART)INVESTORSWE INTENTIONALLY SEEK OUT OPPORTUNITIES TOENGAGE WITH OUR INVESTORS, soliciting their feedback
through various channels throughout the course of theyear. In Fiscal Year 2023, more than 14 investors andanalysts participated in our materiality assessment, via
surveys and interviews. During Fiscal Year 2023, weconnected with investors more than 100 times, hosted
more than 25 analyst meetings, and participated in
more than 20 investor conferences and road shows.
Finally, our investors also receive an annual stockholder
letter from our Chief Executive Officer containing
updates on company performance, our portfolio andfuture plans.
FOR MORE INFORMATION, PLEASE VISIT
THE INVESTOR RELATIONS SECTION OF OUR WEBSITE.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 8

BOARD COMPOSITION & STRUCTURE
BOARD LEADERSHIPBOARD DIVERSITY INDICATORSAEROVIRONMENT’S BUSINESS OPERATIONS
ARE overseen by our Board of
Directors (Board). The Board iscomprised of seven directors, with six
being independent and one being
non-independent. The Board holds
regular meetings a minimum of fourtimes a year and convenes additional
special meetings as required. The Board
periodically assesses whether the numberof directors is suitable in relation to future
operations. The company’s bylaws permit
the Board to range in size from a minimumof three members to a maximum of 13.

6
5
4
3
2
1
0

Gender

Veteran*Ethnically Diverse defined as non-Caucasian.

EthnicallyDiverse*Independent

IN COMPLIANCE WITH our Corporate Governance Guidelines, the Board annually appoints one independent director
to serve as lead independent director in the event that the Chairperson does not qualify as an independent director.
AeroVironment’s Chief Executive Officer, Wahid Nawabi, currently serves as Chairman and does not qualify as“independent” under Securities and Exchange Commission (SEC) and NASDAQ stock exchange regulations.

BOARD MEMBER EXPERTISE

BOARD EXPERTISE
THE BOARD MAINTAINS FOUR committees to assist in operations,
including Audit, Compensation, and Nominating and Corporate
Governance Committees, along with an Executive Committee.
A non-independent chair leads the Board along with anindependent director that serves as lead independent director.

CEO & Executive Expertise
Defense/Aerospace
Industry or Military

FOLLOWING THE END OF EACH FISCAL YEAR, the Board undergoes
a self-assessment overseen by the Nominating and Corporate
Governance Committee. The Nominating and Corporate
Governance Committee also identifies various skills, attributesand experiences in light of the company’s needs and businesspriorities to determine qualification for nomination to the Board.
Board members are elected to three-year terms until theirresignation or removal, or their successors are duly elected andqualified.

International Business

Financial Expertise
Science, Technology& Innovation

FOR MORE INFORMATION, PLEASE VISIT
THE CORPORATE GOVERNANCE SECTION OF OUR WEBSITE.

ESG
0

1

2

3

4

5

6

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 9

RESPONSIBLE BUSINESS OPERATIONSAT AEROVIRONMENT, WE SEEK TO SURPASS THE EXPECTATIONS OF ALL STAKEHOLDERS ACROSS EVERY ASPECT OF OUROPERATIONS. We believe that our technological edge begins with a strong commitment to ethical business practices
and a profound sense of purpose. We adhere to applicable laws and regulations and strive to set higher ethical andquality standards when it comes to engaging employees, customers, suppliers, shareholders, and communities. We
maintain a robust governance framework that fosters trust, accountability, and transparency throughout the company
and the network of relationships we cultivate.

FOR ADDITIONAL DETAILS, PLEASE VISIT POLICIES AND APPROACHES AS WELL AS DOCUMENTS AND CHARTERS SECTIONS OF OUR WEBSITE.

ETHICAL POLICIES & PROCEDURES• ANTI-CORRUPTION POLICY• CALIFORNIA TRANSPARENCY IN SUPPLY CHAINS ACT• CODE OF BUSINESS CONDUCT & ETHICS• CONFLICT MINERALS POLICY• CORPORATE GOVERNANCE GUIDELINES• EMPLOYEE STANDARDS OF CONDUCT• ENVIRONMENTAL POLICY• EQUAL EMPLOYMENT OPPORTUNITY AND
REASONABLE ACCOMMODATION POLICY• INSIDER TRADING POLICY• POLICY AGAINST HARASSMENT, DISCRIMINATION,
AND RETALIATION PURPOSE• POLICY ON EMPLOYMENT OF RELATIVES AND INDIVIDUALSIN CLOSE PERSONAL RELATIONSHIPS• TRADE COMPLIANCE INTERNAL CONTROL PLAN
• QUALITY MANAGEMENT SYSTEM (QMS)*Additional policies exist internally

ETHICS HOTLINEANONYMOUS AND CONFIDENTIAL
TOLL-FREE PHONE AND WEB-BASED ACCESSOPERATES 24/7
INDEPENDENTLY RUN BY A THIRD-PARTY PROVIDER
MONITORED, TRACKED, INVESTIGATEDANTI-RETALIATION PROTECTIONSETHICAL
BUSINESSCONDUCT
AND POLICIESWE HOLD EACH OF OUR DIRECTORS,
company leaders, and employees
to the highest standards of ethics
and integrity. Our Code of BusinessConduct and Ethics Policy reflects
the core of AeroVironment’s ‘Trustand Integrity’ company value.
Additional policies and procedures
have been developed to enhanceand reinforce the high standards
for which we hold ourselves andour suppliers.
AEROVIRONMENT’S ETHICSPROGRAMS and policies aremanaged by our Internal Ethics
Officer. The Board’s Audit
Committee, along with our internal
audit, legal and compliancedepartments, are responsible forreviewing and updating the Codeof Business Conduct and Ethics
annually. They are also responsible
for maintaining and monitoring our
ethics and compliance hotline. The
Audit Committee meets quarterly
to receive and review reportsof our ethics program from ourGeneral Counsel and Chief Ethics
and Compliance Officer.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 10

BUSINESS ETHICS TRAINING AND COMPLIANCE
ALL AEROVIRONMENT DIRECTORS, company leaders, and employees are
expected to review and acknowledge their understanding of and adherence
to the content of our Code of Business Conduct and Ethics at least annually.
Contractors are also subject to and must agree to follow our Code ofBusiness Conduct and Ethics.
AEROVIRONMENT’S TRADE COMPLIANCE (TC) Department plays a crucialrole in ensuring adherence to regulations and laws related to international
trade. Its primary responsibility is to ensure that all defense-related exports
and imports comply with applicable laws, regulations, and licensing
requirements. The TC Department, alongside the People and Culture(P&C) Department, is also responsible for ensuring that all employees,
including management, undergo additional ethics and compliance training
sessions relevant to their role and function within the company. Training
courses include a variety of topics such as anti-harassment, anti-bribery,
cybersecurity, export compliance, and more.
AS OF JUNE 2023, 98% of global employees completed the annual tradecompliance awareness training. Courses such as this are offered throughseveral channels, including in-person training, webinars, and on-demand
platforms such as Workday. Failure to complete mandatory training may
result in disciplinary action for the employee. Our suite of training courses
is made available to employees through our online portal, allowing us totrack and manage completion of all required courses. In compliance with
our Recordkeeping Policy, records related to training are maintained forfive years by the P&C Department. Furthermore, the Legal and ComplianceDepartment maintains a record of all intermediary training and signed
certifications of completion.
IN FISCAL YEAR 2023, THERE WERE NO MONETARY LOSSES AS A RESULTOF LEGAL PROCEEDINGS ASSOCIATED WITH INCIDENTS OF CORRUPTION,
BRIBERY, AND/OR ILLICIT INTERNATIONAL TRADE.

2023
BUSINESS ETHICSTRAINING

ANTI-BRIBERY AND
ANTI-CORRUPTIONANTI-HARASSMENT AND
ANTI-DISCRIMINATIONSTRATEGIES FOR DEFEATINGUNCONSCIOUS BIAS
ANNUAL ETHICS &COMPLIANCE CERTIFICATIONCONFLICTS OF INTEREST
AND SECURITIES TRADING
GENERAL COMPLIANCE
AWARENESSHANDLING OF CONFIDENTIAL
AND CLASSIFIED INFORMATIONPOLITICAL CONTRIBUTIONSTRADE COMPLIANCE
AWARENESS

WHISTLEBLOWER SERVICE AND POLICYWE ENCOURAGE EMPLOYEES, clients, suppliers, stockholders, and other impacted parties to make inquiries and reportany known or suspected violations of AeroVironment’s Code of Conduct, other policies and procedures, or laws andregulations through our ethics and compliance hotline. This service is available 24 hours a day, seven days a week, andis provided by an independent third-party provider. The use of a third-party hotline allows individuals to make reports
anonymously, where legally permissible. Supervisors, managers, and officers who receive reports of misconduct must
immediately notify the Ethics Officer.
THE P&C AND LEGAL and Compliance departments are responsible for receiving and handling issues raised throughthe hotline as well as other reporting mechanisms. Concerns are evaluated and investigated in accordance with
AeroVironment policies and procedures and in compliance with local laws and regulations. Final reports are provided
to the Audit Committee on a quarterly basis, or more frequently if needed, with respect to the information received
through the hotline and any related findings.
AEROVIRONMENT PROHIBITS RETALIATION against anyone who reports a violation or participates in an investigation ingood faith. There are processes in place to address such conduct if needed. All confidential reports made through the
hotline are honored as such and to the extent possible.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 11

INFORMATION SECURITY & DATA PRIVACY
AT AEROVIRONMENT, we are committed to treating the data of our customers, suppliers, employees, and otherstakeholders with utmost care, adhering to principles of safety, legality, and ethics. As an international government
contractor, we take comprehensive measures to safeguard our contracts’ data and privacy while ensuring compliancewith relevant data security and privacy regulations.
WE ADHERE TO THE
GUIDELINES set forth in the
National Institute of Standards
and Technology Special
Publication (NIST SP) 800171. This special publication
outlines recommended
requirements for ensuring theprotection and confidentialityof controlled unclassified
information. Our cybersecurity
plan also aligns with theguidelines of NIST SP 800-171
to safeguard data and fortify
our defenses against potential
breaches. Additionally,
our incident response
protocols and procedures
are in accordance with U.SGovernment guidelines.
OUR INTERNALCYBERSECURITY TEAM IS
ENHANCED BY THE SUPPORTOF SEVERAL THIRD-PARTYRESOURCES, STRENGTHENINGOUR OVERALL SECURITYPOSTURE. Furthermore,
we invest resources into
cutting-edge technologies,
conduct regular penetration
testing, and continue tofollow industry best practices
to protect against threats.
These proactive steps are
implemented to safeguard
our systems and mitigate
potential threats.

PRIVACY POLICYOUR PRIVACY POLICY PROVIDESCOMPREHENSIVE INFORMATIONABOUT THE DATA WE COLLECT, THE
METHODS OF COLLECTION, AND
THE GUIDELINES THAT GOVERNTHE UTILIZATION OF CUSTOMERINFORMATION, INCLUDINGCOMPLIANCE WITH THE GENERALDATA PROTECTION REGULATION(GDPR). This policy ensurestransparency in the measures wetake to safeguard customer data,
our data retention practices, andhow customers can exercise theirrights in relation to the policy.
Unless explicitly permitted for
expected business functions, we
do not share customer data withthird parties. Our corporate Privacy
Policy incorporates the California
Consumer Privacy Act (CCPA)
privacy policy and applies to all of
AeroVironment’s business divisions.
We support the guidelines andregulatory requirements provided
in the Children’s Online Privacy
Protection Act of 1998 (COPPA).

WITHIN OUR ORGANIZATION,
WE PLACE A HIGH PRIORITYON DATA PRIVACY ANDCYBERSECURITY TRAINING,
CERTIFICATION, AND
COMPLIANCE. We ensurethat all employees receive
regular cybersecurity
awareness training, focusing
on best practices, awareness,prevention, and remediationin relation to cybersecurity
and privacy matters. This
commitment ensures that our
workforce is well-equipped tohandle these critical aspects of
our operations.
OUR BOARD OF DIRECTORSOVERSEES OUR CYBERSECURITY
APPROACH BY REVIEWINGRELEVANT TOPICS AT LEASTANNUALLY. Our company
leaders manage cybersecurity
practices across the company
and its divisions to ensure
conscientious, responsible
practices are upheld at every
level of our organization.

FOR FURTHER DETAILS, OUR PRIVACY POLICY, TERMS AND CONDITIONS, AND OTHER STATEMENTS ARE AVAILABLEON OUR WEBSITE. FOR ADDITIONAL INFORMATION ON OUR POLICIES AND PROCESSES GOVERNING INTERACTIONSOF OUR INTERMEDIARIES, PLEASE CONTACT US.
AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 12

RESPONSIBLE SUPPLIER PRACTICESWE ARE RELENTLESS in our efforts to push the boundaries of our capabilities, delivering technology and solutions thatprovide valuable new capabilities to our customers. To achieve this, we need suppliers who are equally passionate intheir commitment to excellence in order for us to be successful as a company. We see our suppliers as an extension of
our own operations, and therefore have strict requirements for our suppliers.
Our Supplier Portal provides current and potential suppliers with the information necessary to begin andmaintain a successful relationship. This includes details on our standards,
our philosophy, terms and conditions, as well as informationon technical innovation, quality and performance, and ethicalcommitments.
WE EXPECT OUR SUPPLIERS to provide value-added products andservices. We evaluate and score our suppliers based on theiradherence to our policies, their technical capability, product andservice quality, responsiveness, financial strength, and more.
Therefore, we must be aligned on our journey to reduce costs, improve
productivity, and reduce our impact on the environment.
WE HOLD OUR SUPPLIERS to the same ethical business standards
that we adhere to, including laws pertaining to bribery, child labor,human trafficking, privacy, safety, and the environment. Additionally,
we require suppliers to adopt policies and practices for properdue diligence when it comes to tracing and sourcing materials.
This includes our Conflict Minerals Policy as well as the California
Transparency and Supply Chains Act of 2010. Additional details
concerning fair labor, responsible sourcing, and ethical human rights
practices are found in our Supplier Quality Requirements Manual.
These measures collectively reinforce our commitment to ethical andresponsible sourcing throughout our supply chain.
TRACING CONFLICT MINERALS THROUGH our global supply chain ischallenging, especially as we are a downstream supplier and areseveral steps removed from the mining of such minerals. We have
implemented a conflict mineral compliance program which is designed
to meet our SEC reporting obligations with regards to sourcing fromthe Democratic Republic of the Congo (DRC) and other covered
countries. Our program aligns with the framework outlined in the
Organisation of Economic Co-operation and Development (OECD) Due
Diligence Guidance for Responsible Supply Chains of Minerals from
Conflict-Affected and High-Risk Areas and the related supplements
for tin, tantalum, tungsten, and gold (3TG). We have conducted areasonable country of origin inquiry (RCOI) in good faith to evaluate
the origination of purchased minerals. Following the evaluation, we
performed due diligence on the source and chain of custody of the 3TG
in question to determine our products are “DRC Conflict-Free.”

MINIMUM
SUPPLIERREQUIREMENTS
ISO 9001:2015 COMPLIANT // MINIMUM
AS9100D CERTIFIED SUPPLIERS // PREFERRED
Suppliers shall fill out our Supplier
Initial Survey to be reviewed forapproval into AeroVironment’s
Approved Supplier List (ASL)
Suppliers shall conform to therequirements of our Supplier Quality
Requirements Manual
Suppliers shall conform to all
requirements flowed down
via procedures, drawings, etc.
according to Part Identification and
Serialization
Suppliers shall use Supplier Process
Change & Deviation Request to
request engineering changes ordeviation

TO ENSURE COMPLIANCE with our policies and procedures, we routinely audit and assess our suppliers. These audits
consider quality systems, surveillance, product processes, commodities, and capacity. In Fiscal Year 2023, we
conducted ten quality management system audits of our at-risk suppliers which scored low on our supplier scorecard,
and Corrective Action Requests (CARs) were generated for deficiencies found. The response to resolving CARs in atimely manner and/or severity of the audit findings determines the path forward with the supplier, including up tocontract termination. The supplier scorecard is reviewed in management review meetings to ensure that leadership isaware of any supplier performance issues and subsequent actions.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 13

RESPONSIBLE SUPPLIER PRACTICES (CONT.)INVESTMENT
IN DIVERSE SUPPLIERS$51.4 M
SPENT WITH SMALL
BUSINESS SUPPLIERS

SUPPLIER DIVERSITY
We seek diversity in every aspect of our business, including throughsuppliers which can meet our responsible business standards and ourcompany needs. We recognize that a diverse supply base strengthens
competition, supports local economies, and brings additional innovative
thought. We continue to develop and expand our supplier base as ameans to exemplify innovation, customer commitment, and integrity.
AeroVironment provides equal opportunities to participate and compete
for the procurement of products and services. During 2023, we engaged
with more than 1,200 global suppliers who can meet and support our
growing business needs.

$1.9 M

SPENT WITHMINORITY-OWNED SUPPLIERS$2.0 M

SPENT WITH
FEMALE-OWNED SUPPLIERS

Through our Small Business Participation Plan, we are dedicated tomaximizing our engagement with small businesses, including those
owned by disadvantaged individuals, women, veterans, and disabled
veterans, particularly in our contracts with the U.S. Federal Government.
For more information please see our Small Business Subcontract Policy
and Standard Operating Procedure.

TO LEARN MORE ABOUT OUR SUPPLIER EXPECTATIONS AND
REQUIREMENTS, PLEASE VISIT THE SUPPLIERS SECTION OF OUR WEBSITE.

SAFETY AT AEROVIRONMENTAS PART OF OUR CORE VALUE OF OWNERSHIP AND RESULTS, WE ACT IN THE INTEREST OF ALL OUR STAKEHOLDERS,BEYOND OURSELVES AND OUR TEAMS. As such, AeroVironment takes a comprehensive approach to safety,
encompassing the safe operation of our products, the safety of our workforce, and the safety and security enabled byour products.
ALL EMPLOYEES, CONTRACTORS, VENDORS, AND CUSTOMERS ARE SCREENED USING THIRD-PARTY TOOLS AND SYSTEMSLINKED TO MULTIPLE WATCHLISTS BEFORE THEY MAY ENGAGE WITH OR INTERACT WITH AEROVIRONMENT. The Directorof Trade Compliance and the TC Department oversee the Restricted Party Screening Procedure.

CUSTOMER SAFETY AND INTEGRITY

AeroVironment is committed to ensuring its products are used in a safe, responsible,
and reasonable manner and employs practices that ensure its products are not sold toor used by malefactors.

THE SAFETY OF
OUR WORKFORCETHE SAFE
OPPERATIONOF OURPRODUCTS

THE RIGHT
TO A SAFEAND PEACEFUL
EXISTENCEAEROVIRONMENT MAINTAINS A ROBUST TRADE COMPLIANCE PROGRAM IN COMPLIANCE
WITH U.S. export laws and regulations, including International Traffic in Arms
Regulations (ITAR) and Export Administration Regulations (EAR) which regulate theexport of many of our products and services. At AeroVironment, we have a dedicatedteam tasked to monitor and interpret regulatory requirements, apply export controls
to our products and technologies, obtain and administer licenses and authorizations,screen all parties that we as an enterprise interact with, conduct jurisdiction andclassification analyses of our products, provide internal training and awareness,maintain records, audit our policies and records, and perform risk management.

ADDITIONALLY, EACH CUSTOMER ORDER RECEIVED IS VETTED THROUGH OUR CONTRACTS DEPARTMENT AND THEN
ENTERED INTO OUR INTERNAL DATABASE. Any Federal Acquisition Regulation (FAR) requirements are flowed down
automatically and tracked to each individual customer order. We have a standard set of FAR and Defense Federal
Acquisition Regulation (DFAR) flow downs that are automatically included on all Purchase Orders in addition to
AeroVironment’s standard set of Commercial Terms and Conditions and the U.S. Government-required Terms andConditions. This information is readily available on our company website. Our purchasing system has been approved by
the Defense Contract Audit Agency (DCAA) with the most recent approval in 2022 and was reconfirmed in 2023.
AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 14

WE PROVIDE COMPREHENSIVE TRAINING TO OURAEROVIRONMENT’S CERTIFIED ISO-9001:2015 AND
CUSTOMERS ON THE SAFE USE AND OPERATION OF OUR
AS9100D PRODUCTION AND SERVICE FACILITY ENSURESSTATE-OF-THE-ART UNMANNED ROBOTICS SOLUTIONS.
THAT WE PROVIDE A HIGH LEVEL QUALITY MANAGEMENT
DEPENDING ON THE PRODUCT AND SERVICES, we
SYSTEM TO OUR CUSTOMERS. IN FISCAL YEAR 2023,
offer interactive digital training to aid in the retention
we began tracking customer satisfaction metrics. Weof information. Our Field Service Representatives
are proud to report that our First Contact Resolution
provide on-site support and act as the liaison between(FCR) rate is at 97% and our customer satisfaction rate
customers and the AeroVironment engineering teams.
exceeds 95%.
We also offer program management and subject matter
Precision Strikeexpert (SME) support.

Tactical Munition System

PRODUCT EXCELLENCE AND INTEGRITYDISTINCTIONSKEY FEATURES

RANGE
20+ km» Backpackable—lightweight, multiple All-Up-Round (AUR) load-out» Enhanced frequency hopping Digital Data Link covering more

OUR CUSTOMER COMMITMENT IS TO
VIGOROUSLY WORK TO EARN AND KEEPBLOCKfrequencies
20 & supporting AES-256-bit encryption
ENDURANCE»
Advanced Munition—multiple commit angles, user-selectable point of
20+ min
OUR CUSTOMERS’ TRUST. We do so by
detonation, left hand commit with continuous Positive Identification
WEIGHT(PID)
understanding, anticipating, and responding
Munition: 4 lb (1.8 kg), AUR: 8 lb (3.6 kg)» One-person operation—system can be rapidly deployed in <2 minwith agility to their needs. To do this, weSPEED» Patented wave-off feature & recommit capability
Loiter: 63 mph (101 km/h)
continuously leverage our team’s deep» Intuitive touch screen tablet Fire Control Unit (FCU)
Sprint: 100 mph (161 km/h)
subject matter expertise and have operating
SPECIFICATIONS
procedures in place to ensure product
Tablet-based FCU with Tap-to-Target guidance with built-in
CONTROLmission planner and training simulator; interoperable withperformance exceeds industry standards. In FIRE
SYSTEM
Switchblade 600 FCU
addition to our Airworthiness (AW) Process TARGETING OPTICS Enhanced EO/IR with forward to left hand panning camera
suite
Switchblade 300 Block 20 Precision Loitering Munition
and Quality Assurance programs in place, weOPERATING ALTITUDE Flight <500 ft (152.4 m) AGL; supports operation >15,000 ft(4572 m) ASL
have implemented Safety Engineering Process
Self-contained launcher for ground, air & maritime;
LAUNCH METHOD
configurable multipack capability
Procedures, Safety Design Guidelines, andAnti-personnel effects; precision strike with low collateral
LETHALITY
effects
have a System Safety Program Plan.
AUR: 8 lb, fits inside rucksack

SWITCHBLADE 300

TM®

Precision Strike
Tactical Munition System

TACTICAL LOAD-OUT

WHEN IT COMES TO EXPORTED PRODUCTS, OUR
CUSTOMERS ARE REQUIRED TO ADHERE TO
U.S. Government regulations, which include
complying with approved product usesand prohibition of reselling or transferring
ownership without prior approval fromthe U.S. Government. Through the Blue
Lantern program, the U.S. Department ofState conducts pre-license, post-license/
pre-shipment, and post-shipment checks
to verify end users receive the legitimate
equipment and are using it for its intended
purposes. Additional validation checks are
conducted on highly sensitive equipment. We
also have policies and procedures in place
to help validate equipment, including Part
Identification and Serialization to prevent andminimize counterfeit products.

(includes payload, launcher, transport bag)

DISTINCTIONS

Launcher with Integrated Launch Control

Fire Control System with Tablet Controller

3 USER-SELECTABLE ATTACK ANGLESDIRECT ATTACK FROM ORBIT //MAINTAIN PID

RANGE
20+ km
ENDURANCE
20+ minKEY FEATURES» Backpackable—lightweight, multiple All» Enhanced frequency hopping Digital Dat

frequencies & supporting AES-256-bit en» Advanced Munition—multiple commit andetonation, left hand commit with conti(PID)

Switchblade® 300 Block 20 is the next-generation successor to the combat-proven Switchblade 300, providing the warfighter with arapidly deployable precision strike munition for engaging beyond-line-of-sight (BLOS) with lethal effects. Building on AeroVironment’s
WEIGHT
family of loitering munition
systems, Switchblade 300 Block 20 offers enhanced operational features including high-resolution EO/IR
AeroVironment – ph: 703.418.2828 – www.avinc.com // © 2023 AeroVironment, its product names and the AV logo are protected trademarks of AeroVironment Inc. All other company, product names,
logos, and brands are propertycameras,of their respective
ownersand are for identification
only.
Use AUR:of theseand brands
not imply
endorsement.
Screen images
be simulated.
longerendurance
andtouchkg),
screenFirenames,
Control
System
(FCS)
allowing
operators
to mayeasilytrain, plan and execute missions.
Munition:
4 lba purposes(1.8
8 lblogos,(3.6kg)does
All specifications are subject to change. This data sheet consists of AeroVironment, Inc. general capabilities information that does not contain controlled technical data as defined within the International
This
miniature,
precisionloitering
Traffic in Arms Regulations (ITAR)
Partlightweight,
120.10 or Export Administration
Regulations(EAR) Part
734.7-11. munition provides real-time video and Cursor-on-Target GPS coordinates, delivering theactionable intelligence and precision firepower needed to achieve mission success across multiple domains.

SPEED
Loiter: 63 mph (101 km/h)
Sprint: 100 mph (161 km/h)
AeroVironment — ph: 703.418.2828 — www.avinc.com» One-person operation—system can be ra» Patented wave-off feature & recommit c» Intuitive touch screen tablet Fire Contro
VERSION 230802

SPECIFICATIONSFIRE CONTROLSYSTEM

Tablet-based FCU with Tap-to-Target guidance with built-in
mission planner and training simulator; interoperable with
Switchblade 600 FCUTARGETING OPTICS

Enhanced EO/IR with forward to left hand panning camera
suite

Switchblade 300® Block 20 Precision Loitering Munition

Flight <500 ft (152.4 m) AGL; supports operation >15,000 ft
THROUGHOUT THE PRODUCT LIFECYCLE,OPERATING ALTITUDE(4572 m) ASL
we continually evaluate safety and design
Self-contained launcher for ground, air & maritime;
LAUNCH METHOD
quality. Our quality system processes
configurable multipack capability
consistently meet or exceed the prevailing
Anti-personnel effects; precision strike with low collateral
LETHALITY
effects
industry standards. We maintain certification
AUR: 8 lb, fits inside rucksack
TACTICAL LOAD-OUT
and compliance of our quality management(includes payload, launcher, transport bag)system with the ISO-9001:2015 and AS9100D
standards at five of our locations in California
Launcher with Integrated Launch Control
and Massachusetts. These certifications involve regular audits performed by a third-party accredited registrar,
ensuring that our quality management system complies with the established standards.

3 USER-SELECTABLE ATTACK ANGLESAeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 15

Fire

DIREC
MAIN

SAFETY AT AEROVIRONMENT (CONT.)OUR CONTINUOUS IMPROVEMENT TEAM IS comprised of skilled professionals trained in Six Sigma and Lean Six Sigma
tools and techniques for target-focused process improvement. Working simultaneously with our quality management
system, this team consistently delivers exceptional quality to our customers while adding value to our product lines
through their dedication to improving process efficiencies and minimizing waste.
TO ENSURE THE UTMOST PRECISION in our instruments, we engage an independent vendor certified by the National
Institute of Standards and Technology (NIST) to maintain our instrument calibrations. This partnership guarantees that
our calibrations are maintained at the highest level of accuracy.

QUALITY MANAGEMENT SYSTEM PROTOCOLSAEROVIRONMENT SAFETY MANAGEMENT SYSTEM
AV PRODUCT DEVELOPMENT FRAMEWORKAIRWORTHINESS PROCESSENGINEERING PRODUCT DEVELOPMENT PROCESSEMPLOYEE DRIVENCONTINUOUS IMPROVEMENTMANAGEMENT COMMITMENT& ACCOUNTABILITY

HAZARD ID &RISK MANAGEMENTSTANDARDIZED WORKCOMPLIANCEEMPLOYEE HEALTH, SAFETY & WELLNESS

5 PILLARS OF ENVIRONMENTAL, HEALTH & SAFETY

AT AEROVIRONMENT, SAFETY IS critical to
our mission, therefore we invest in building
and maintaining a proactive safety culture.
This approach, coupled with targeted
programs and policies, ensures safe working
conditions, a healthy working environment,
and a resilient workforce opens the pathway
for quality research, development, andproduction across our operations.
OUR ENVIRONMENTAL, HEALTH, AND
SAFETY Management System considers thehealth and safety risks present within ouroperations, incorporating applicable local
laws and regulations to ensure compliance.
This includes, for example, all applicable
U.S. Occupational Safety and HealthAdministration (OSHA) and Departmentof Transportation (DOT) regulations andrequirements.

SAFETY POLICIES AND INITIATIVESSAFETY AT AEROVIRONMENT IS NON-NEGOTIABLE and our employees know this and acknowledge this requirement,
which is a deeply-rooted aspect of our company culture. As part of our annual employee engagement survey, 94% of
our colleagues said that AeroVironment is a physically safe place to work.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 16

AS PART OF OUR INJURY AND ILLNESS PREVENTION PROGRAM(IIPP), WE HOST FORMALIZED TRAINING TO ENSURE EMPLOYEESUNDERSTAND OUR POLICIES AND PROCEDURES, AS WELL AS
UNDERSTAND DESIGNATED RESPONSIBILITIES REGARDING
SAFETY. Additionally, we recently introduced a formal
contractor safety program to further enhance the safetyof our operations for everyone. AeroVironment remains
compliant with all federal government contractor regulations
for COVID-19 vaccinations and regulations including the U.S.
Safer Federal Workforce Task Force.

INJURY AND ILLNESSPREVENTION PROGRAMHEALTH &SAFETY POLICYROLES &RESPONSIBILITIESTHROUGHOUT THE YEAR, WE UNDERGO ROUTINE SAFETY AUDITS
AND INSPECTIONS TO IDENTIFY IMPROVEMENT OPPORTUNITIESAND NEW RISKS. We also conduct root-cause investigations
to identify and implement corrective actions, should the needarise. In Fiscal Year 2023, we conducted a total of 15 internaland external audits across our operations covering topics
such as safety, health, and compliance.

FAILURE TO COMPLY WITH AEROVIRONMENT’S ENVIRONMENTALHEALTH AND SAFETY STANDARDS OR REGULATIONS MAYLEAD TO DISCIPLINARY ACTIONS, UP TO AND INCLUDINGTERMINATION. Employees are critical to the success andsafety of our operations; therefore, they are provided directchannels to speak up, ask for guidance, and report concerns
regarding any potential or known ethical or safety violations.
We review and address concerns raised by employees, taking
appropriate actions to ensure that our values as well as
policies and procedures are upheld.

INCIDENT REPORTING& INVESTIGATIONINSPECTION & RECORDSHEALTH SURVEILLANCESAFETY PROCEDURES
EMERGENCY PROCEDURESSUPPORTING FORMS& CHECKLISTSGLOBAL SAFETY PROGRAMSHAZARDCOMMUNICATIONPROGRAMHAZARDOUS
MATERIAL
HANDLINGLABELING

SAFETY DATASHEETS

LOCKOUT /TAGOUTPERSONALPROTECTIVE
EQUIPMENT

MATERIAL CUTTING,
WELDING, BRAZINGDEPARTMENT OF
TRANSPORTATION(DOT) COMPLIANCELASER SAFETY

EMERGENCYRESPONSE

MACHINE
GUARDING

BLOODBORNE
PATHOGENS* Additional training beyond this list is provided based on job function and need.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 17

CONFINED SPACESERGONOMICSENVIRONMENTAL MANAGEMENTBUILDING UPON OUR GLOBAL SAFETY PROGRAMS, DRIVEN BY OUR PURPOSE AND PROMISE TO SECURE LIVES, AND
ADVANCE SUSTAINABILITY THROUGH TRANSFORMATIVE INNOVATION, AEROVIRONMENT STANDS TO PROTECT THE
ENVIRONMENT THROUGHOUT OUR OPERATIONS AND THE BROADER GLOBAL VALUE CHAIN. This commitment toenvironmental awareness and preservation is adopted throughout our company. We believe that sustainablebusiness practices translate to strong financial performance as well as build customer loyalty, and improve employee
engagement, while also strengthening the relationship we have with the communities in which we work, live, andoperate.
IN ADDITION TO OUR QUALITY CERTIFICATIONS, we also hold certifications for environmental management such as
ISO14001:2015, storm water discharge “No Exposure Certification,” and ensure compliance with applicable air
pollution permits as established by local laws and regulations. We conduct both internal and external audits to ensure
we remain in compliance with our own policies as well as those set forth by regulators. In addition to the 15 audits
EH&S conducted on our facilities this year, our California sites undergo weekly hazardous waste inspections.
FURTHERMORE, we are assessing how climate change impacts our value chain and are preparing for future regulatory
requirements. As outlined in our Environmental Policy, we are exploring environmental objectives such as:○ TO CONSERVE natural resources and minimize waste through source reduction and recycling;○ TO HANDLE and dispose of waste through safe, environmentally responsible methods;○ TO ENCOURAGE energy efficiency and the use of renewable energy sources; and○ TO ENCOURAGE our business partners and suppliers to strive for the same high levels ofenvironmental performance

AEROVIRONMENT’SSUSTAINABILITYCOMMITMENT

1. Comply with environmental regulations;
2. Conduct operations in an environmentally sound manner to prevent pollution;
3. Apply the principles of reduce, reuse and recycle in all processes;
4. Promote environmental responsibility among our employees;
5. Strive to ensure that suppliers agree to comply with environmental
regulations;

6. Clearly communicating AeroVironment’s environmental policy,
practices and impact to interested parties;

7. Pursue continuous improvement in our environmental performance;
8. Train, educate, and inform our employees about environmental issues

that may affect their work;

9.

Avoid unnecessary use of hazardous materials and products, seek
substitutions when feasible, and take all reasonable steps to protect humanhealth and the environment when such materials must be used, stored anddisposed of; and10. Purchase and use environmentally responsible products accordingly
FOR MORE INFORMATION, PLEASE SEE OUR ENVIRONMENTAL POLICY AND
THE SUSTAINABILITY SECTION OF OUR WEBSITE.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 18

ENERGY EFFICIENCYEFFICIENCY IN OUR PORTFOLIOSINCE THE CREATION OF AEROVIRONMENT,OUR FOUNDER DR. Paul B. MacCready, Jr.,
sought to embed sustainability into every
aspect of our company. As a solar energy
pioneer, he led the development of the solarpowered Sunraycer racecar, unlocking new
potential for solar operations. Following his
lead, AeroVironment continues to incorporate
sustainability into the research anddevelopment of our products.
WE ARE PROUD THAT AEROVIRONMENT HAS
BECOME ONE OF THE LARGEST ELECTRIC
UNMANNED AIRCRAFT SYSTEMS (UAS)
MANUFACTURERS, delivering a suite of zero-emission, energy efficient, battery-powered UAS as well as stratospheric,solar powered UAS for global connectivity. These innovative vehicles are designed to deliver valuable new capabilities
to their users while reducing their footprint and environmental impact. We also continue to develop equipmentwith smaller environmental footprints and reduce resource burdens on end-users. In addition to improved energy
efficiencies, with increasing advancements in communications technology, we are able to enhance user safety by
expanding the distance between operator and vehicle. Our MacCready Works Advanced Solution team continues topush the boundaries of modern technology. Today, roughly 80% of our product portfolio is battery powered.

EFFICIENCY IN OUR OPERATIONSENERGY EFFICIENCY IS A KEY COMPONENT TO OUR BUSINESS MODEL, NOT ONLY WITHIN OUR PRODUCT PORTFOLIO,
BUT ALSO WITHIN OUR OPERATIONS. As part of our Environmental Policy, we pursue continuous improvement in ourenvironmental performance.
WE PROMOTE ENERGY EFFICIENCY WITHIN OUR OPERATIONS. In Fiscal Year 2023, our United States locations consumed
approximately 9,000,000 kWh of energy. Of this, roughly 80% is electricity supplied through the grid, with the rest of
our energy mix coming from natural gas. This past year, of the more than 7,000,000 kWh of electricity consumed, we
paid additional fees to our electricity providers to ensure that over 30% came from renewable sources. We continue toinvestigate options to expand renewable energy sources.

FY23 ENERGY MIX // kWh

FY23 ENERGY CONSUMPTION // kWh BY SITE

20.1%
NATURALGAS

25.3%

RENEWABLE
ELECTRICITY

5M

Sim Valley

4M

54.6%

NON-RENEWABLE
ELECTRICITY

Moorpark

3M
2M

MUAS

1M
0

All Other Sites

Renewable Electricity

Non- Renewable Electricity

OUR CALIFORNIA LOCATIONS, which represent more than 70% of our US-based energy consumption, are using
the Clean Power Alliance which derives energy from renewable sources. We pay a premium to our energy providers toensure that specific percentages of our energy are from renewable sources. This program in turn promotes increasing
availability of energy from renewable sources. Our renewable electricity purchases remained stable at 22%, 36% and
50% across our Petaluma, Simi Valley, and Moorpark locations respectively compared to last year.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 19

WATER USE & CONSERVATIONWASTE MANAGEMENTWE RECOGNIZE THAT WATER IS OF GROWINGCONCERN FOR SEVERAL INDUSTRIES AND VARIOUS
STAKEHOLDERS. HOWEVER, our operations andour products are not considered to be highwater consumers. Regardless, we do consider
the impacts of water as it relates to resource
responsibility, environmental compliance, andthrough the lens of the social license to operate.

AEROVIRONMENT’S ENVIRONMENTAL POLICY INFORMSOUR APPROACH TO WASTE MANAGEMENT. The policy ismulti-faceted with the expectation to be compliant withall environmental regulations, to be resource efficient,prevent pollution, and to operate in an environmentally
responsible manner. We have additional supporting
policies and procedures to further reinforce ourcommitment to environmental health and safety suchas our Chemical Hygiene Plan, Hazardous Material
Management Plan, Hazard Communication Program,and more.

We continue to maintain our “No
Exposure Certificate” through thelocal and federal Environmental
Protection Agency (EPA).

WATER WITHDRAWALS TO OUR PRODUCTION AND
OFFICE FACILITIES ARE USED PRIMARILY FORHYGIENIC PURPOSES. OUR WATER WITHDRAWALS
FOR OUR OFFICE FACILITIES ARE OFTEN NOTSEPARATELY METERED AND ARE INCLUDEDWITHIN LEASING CONTRACTS. ACROSS OURPRODUCTION FACILITIES IN THE UNITED STATES, we
withdrew more than 14,000 cubic meters (m3) ofmunicipal water. In 2022, California’s State Water
Board adopted a statewide emergency water
conservation regulation. In compliance with theruling, which impacted several of our locations,
we reduced landscape watering on our campuses.
Across our U.S.-based operations, we haveultimately reduced our water withdrawals by morethan 10,000 m3 compared to last year, despite theaddition of two new MUAS locations.
ANY POTENTIAL WATER-RELATED POLLUTION OR
CONTAMINATION IS MONITORED THROUGH OURENVIRONMENTAL HEALTH AND SAFETY PROGRAM.
AS PREVIOUSLY STATED, failure to comply with
AeroVironment’s Environmental Health and Safety
standards or regulations may lead to disciplinary
actions, up to and including termination. Likewise,
any stakeholder is encouraged to directly contact
us or raise a concern through our ethics andcompliance hotline. We review and addresscomplaints raised in good faith, taking appropriate
actions to ensure that our values are upheld andthat the environment and surrounding communities
are not disadvantaged by our operations.

AS PART OF OUR ENVIRONMENTAL, HEALTH AND SAFETYPROGRAM, WE TRAIN OUR EMPLOYEES ON WASTE
MANAGEMENT AND HAZARDOUS MATERIALS, INFORMING
THEM OF PROPER STORAGE AND DISPOSAL METHODS IN
ACCORDANCE WITH LOCAL AND FEDERAL REGULATIONS.
Materials which cannot be recycled or reused areultimately disposed of in compliance with local andfederal regulations. At this time, we do not collect waste
information at the corporate level. In Fiscal Year 2023,
we did not have any reportable spills.

Our partnership with theSimi Valley Education Foundation
extends back to 2017.

AEROVIRONMENT CONTINUES TO OPERATE A ROBUSTELECTRONIC WASTE (E-WASTE) RECYCLING PROGRAM
WHICH CAPITALIZES ON SALVAGING COMPONENTS FROMOBSOLETE TECHNOLOGY. Through this program wereduce the amount of e-waste, including hazardous
waste, which would otherwise go to landfills. The
revenue we generate from the waste recycling programat our Simi Valley and Moorpark locations are thendonated back to the Simi Valley Education Foundation.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 20

EMPLOYEE WORKFORCEWORKFORCE DISTRIBUTION AND DEMOGRAPHICSWE HOLD STEADFAST IN OUR BELIEF THAT AEROVIRONMENT’S MOST VALUABLE ASSET IS OUR PEOPLE. Our global
workforce is composed of four core company functions to support our business and operations.
IN FISCAL YEAR 2023, our global workforce population was 1,279 employees, of which 99% were consideredfull-time employees. We hired 228 new employees, replacing 227 employees who were either terminated or retired.

GLOBAL WORKFORCE TENURE

WORKFORCE DISTRIBUTION BY FUNCTION
5%
43%

20%

6%

0-2 YEARS // 29%

Administrative // 20%

29%

10%

2-5 YEARS // 42%

R&D and Engineering // 32%

2%

6-10 YEARS // 11%

Operations // 43%

11-15 YEARS // 10%

Sales and Marketing // 5%

11%

16-20 YEARS // 6%

32%

20+ YEARS // 2%

42%

NUMBER OF U.S. EMPLOYEES BY AGE

161

405

UNDER 30 YEARS
0Running Total

603

30-50 YEARS

100

200

300

OVER 50 YEARS

400

500

600

700

PECENTAGE OF U.S. WORKFORCE BY GENDER

800

900

1000

1100

PERCENTAGE OF U.S. WORKFORCE BY AGE
51%

14%

79%
UNDER 30 // 14%30 TO 50 // 35%

MALE // 79%
FEMALE // 21%

21%

NOT DISCLOSED // 0%0%

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 21

OVER 50 // 51%

35%

1200

EMPLOYEE WORKFORCE (CONT.)TALENT RETENTION, DEVELOPMENT, AND ATTRACTION
AT AEROVIRONMENT, our employees are the heart, brains, and spirit of our operations. As an employer, we listen
attentively to our workforce, and we are committed to understanding their needs. When we take care of our team, it
unlocks potential for new innovations and drives results.

EMPLOYEE RETENTIONAEROVIRONMENT IS DEDICATED TO ATTRACTING, fostering, and retaining the best and brightest minds. We intentionallyalign our employee development program with our employee retention strategies. We know these programs areworking as demonstrated by our employee engagement responses and through our tenured workforce.
Through Fiscal Year 2023, more than 30% of our employees have been at AeroVironment for over six years.

TENUREIN YEARS

MORE THAN

30%

OF EMPLOYEES WITH
AEROVIRONMENT OVER 6 YEARSEMPLOYEE TRAINING AND DEVELOPMENT
AT AEROVIRONMENT, we offer a variety of career development opportunities to support our lifelong learners including
training courses, educational assistance programs, and tuition assistance programs. We aim to enhance our
employees’ knowledge and skills to meet their own personal and career development goals through our programs whilestrengthening our workforce capabilities.
AEROVIRONMENT OFFERS OUR EMPLOYEES an in-depth library of self-paced training and resources. With over 600
courses currently available, training and coaching programs cover topics such as leadership development, people
management, regulatory and policy compliance, and functional skills. Managers and employees are required tocomplete specific annual, periodic, and ongoing training programs specific to their roles and responsibilities
EMPLOYEE TRAINING PROGRAMSAnnual Ethics Certification // Anti-Bribery and Anti-Corruption // Anti-Harassment // Cybersecurity //Classified Information Handling // Strategies for Defeating Unconscious Bias // Insider Trading //International Trade Compliance // SPARK Leadership // FranklinCovey Leadership Foundations
IN ADDITION TO COMPANY-FACILITATED TRAINING, we support and encourage our employees’ pursuit of additional
learning opportunities. Our education assistance and training program covers company-required and non-required
instruction including seminars, conferences, online classes, webinars, and classroom teaching. AeroVironment alsooffers a tuition reimbursement program to assist eligible employees with reaching their educational goals at accredited
institutions. We also offer a mentorship program that provides a structured environment for professionals to learn fromone another in a self-guided environment.

IN 2023, we began a new employee
onboarding event to showcase thecompany’s products and share ourcompany values.

As part of our commitment to fostering trust and teamwork,
we encourage our leaders with five or more direct reports tocomplete a yearly action plan where they focus on areas for
improvement and how to accentuate the identified strengthsof their team.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 22

LEADERSHIP DEVELOPMENTSPARK IS AEROVIRONMENT’S LEADERSHIP andprofessional development program. The program is
made up of a comprehensive series of workshops,
assessments, coaching, and mentoring for every
employee. These workshops are engaging, timely, andrelevant to AeroVironment’s goals and objectives, eachaligning with our stated values and competencies.

SHARE information
PLAY to strengths
ASK for input and appreciate different ideas
RECOGNIZE and respond to individual needs
KEEP your commitments

IN FISCAL YEAR 2023, we rolled out a new partnershipwith FranklinCovey to implement The 6 Critical Practices of Leading a Team™. This program is a special collection of
relevant, practical resources that provide leaders with the mindsets, skillsets, and toolsets needed to excel in theircritical roles of leading others effectively. We had over 90% of participation from people managers.

EMPLOYEE RECRUITMENT AND INTERNSHIPS
EACH YEAR, we offer theopportunity for college interns towork alongside some of the mostinnovative and creative minds inthe industry. During the program,participants are faced with realworld problems that need new,groundbreaking solutions. Whilethey are with us, these interns
gain the knowledge and skills towork through the various phases ofresearch and design, engineering,
manufacturing, marketing, andsales.

AS A RESULT OF OUR ONGOING
COMMITMENT TO FUTURE
GENERATIONS OF TALENT,
AeroVironment was recently
selected as a WayUp Top 100
Internship Program participant.
We are proud to participate in thisprogram that helps match college
students and recent graduates withinternships and potential careers. In
In Summer 2023, we proudly hosted
40 interns and are excited to keep
the program growing.

IN ADDITION TO SEEKING
INTERNS, WE PARTICIPATE IN A
VARIETY OF INDUSTRY-SPECIFICTALENT ATTRACTION ACTIVITIESTHROUGHOUT THE YEAR. We attend
events like MassRobotics, theWomen’s Engineering International
Conference (WE22), as well as anumber of college career fairs. We
post job openings on our website aswell as on various job boards.

We’re Looking for our
Next Generation of Explorers
FOR MORE INFORMATION ABOUT HIRING OPPORTUNITIES,PLEASE VISIT OUR TALENT OUTREACH WEBSITE.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 23

EMPLOYEE ENGAGEMENTAEROVIRONMENT PARTNERS WITH GREAT PLACE TO WORK, Inc., and for the last
four years has proudly been certified as a Great Place to Work company. This
coveted status is based on exceptionally high ratings by our employees worldwide
which are shared during certification. We are committed to making our employees’
experience a priority and take immense pride in our continued certification.
JUL 2022-JUL 2023
USA86%
I am able to taketime off from workwhen I think it’snecessary.

AS OF JULY 2022, 69% of respondents calling AeroVironment a great place to work, ascompared to 57% of employees at a typical U.S.-based company, according to Great
Place to Work. Our next survey will be conducted in August 2023.

84%

83%

81%

81%

When you join thecompany, youare made to feel
welcome.

I’m proud totell others
I work here.

People here
are given a lotof responsibility.

When I look at what
we accomplish,
I feel a senseof pride.

OUR EMPLOYEES KNOW AND UNDERSTAND HOW THEIR WORK FITS INTO THE PROCESS OF BRINGING PRODUCTS FROM
CONCEPT THROUGH TESTING TO PRODUCTION. Our solutions help customers do more with less, however we believe in
helping employees do more, with more. More open communication. More teamwork. More challenges. More success.

BRAVO! EMPLOYEE RECOGNITION PROGRAM
BRAVO! IS AEROVIRONMENT’S INTERNAL recognition
program designed to support organizational goals,
drive business performance, and reward employee
contributions. BRAVO! enables peer-to-peer recognitionof employees at all levels, enabling coworkers to express
appreciation and thanks for a job well done and playing an instrumental role in the company’s success.

EMPLOYEE COMMITTEES AND RESOURCE GROUPS

AT AEROVIRONMENT, CREATING A CULTURE of diversity and inclusion is something we work on every day. We believethat a diverse workforce and an inclusive workplace is a major catalyst for driving innovation. When employees arefree to be their true selves and share their unique perspectives, extraordinary things happen! A free-flow of ideas
are generated, resulting in optimum solutions for our customers. Events have included summer picnics, Pi Day
celebrations, March Madness, Fall Festival events, and Friday events like “football jersey day.” Employees can apply tohave additional activities and programs sponsored by AeroVironment during the year. For example, employees at our
Simi Valley and Moorpark locations provided strong representation in the Ventura County Corporate Games, a popular
local business community event. We also host two specific Employee Resource Groups (ERGs): PRIDE Alliance andWAVE, which are focused on promoting diversity in our workforce.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 24

EMPLOYEE LABOR PRACTICESAEROVIRONMENT IS COMMITTED TO protecting and promoting fair employment practices within our operations andsupply chain. These expectations are included in our Code of Business Conduct and Ethics and supplier contracts andcomply with all applicable labor and employment laws.
THIS INCLUDES BUT IS not limited to laws relating to unlawful discrimination and harassment, freedom of association,
privacy, and collective bargaining. We respect the rights of employees to choose whether they want to be represented
by a collective bargaining unit, and we do not have any operations in which the right to exercise freedom of
association is at a significant risk.
AEROVIRONMENT COMPLIES WITH ALL laws and regulations that prohibit human trafficking, forced labor, andslavery. To the best of our knowledge, we do not conduct business with suppliers who engage in modern slavery.
AeroVironment suppliers are required to obey applicable laws that require fair treatment of workers and provide a safeand healthy work environment.
AS PREVIOUSLY STATED, FAILURE to comply with AeroVironment’s labor practices as stated in the Code of BusinessConduct may lead to disciplinary actions, up to and including termination. Employees have a duty to report any
violation of the law or Code of Business Conduct directly (including through contact us) or raise a concern through our
ethics and compliance hotline which is available 24 hours per day, 7 days per week. All questions or reports of known
or suspected violations of the law or Code of Business Conduct will be investigated.

DIVERSITY, EQUITY, AND INCLUSIONOUR VISION FOR
DIVERSITY, EQUITY,
AND INCLUSIONWE EMBRACE AN
INCLUSIVE culture thatencourages, supports,
and celebrates thediverse voices of
our workforce andempowers us to create
more meaningful andinnovative solutions forhumankind.

WE VIEW A DIVERSE workforce and inclusive
workplace as catalysts for innovation. We
believe in trust and teamwork as one of
our core values, allowing for collaboration, WAVE:
innovation and customer-oriented results.
Our Women’s ERG provides opportunities for memAs employees are allowed to share theirbers to develop and expand women’s roles within
ideas, thoughts, and perspectives, we build
AeroVironment and across our industry.
a culture which is more meaningful andinnovative.
BUILDING OFF LAST YEAR’S campaign,
our Diversity and Inclusion Committee
created networking opportunities, training
sessions, and hosted social events. For
example, we conducted “Unconscious
Bias Training” which achieved a 94%
participation rate. Our Employee Resource
Groups continue to expand and growinternally, in an effort to bolster a culture ofinclusion, diversity, and creativity.

PRIDE ALLIANCE:
Our LGBTQ+ ERG provides networking andother opportunities in support of our efforts
to diversify our employee population.

WE INTENTIONALLY CELEBRATE AUTHENTICITY to foster a sense of belonging amongst our employees. Throughout
the year, our annual Diversity and Inclusion Calendar celebrates the various ethnicities and backgrounds whichmake up the DNA of our workforce. Our Talent Outreach Program coordinates with Society of Women in Engineering,
the Society of Hispanic Professional
Engineers, and National Society of Black
Engineers. Last year, we expanded ourrecruiting efforts to intentionally focus
on minority-serving institutions (MSIs) and historically-black colleges and universities (HBCUs). In Fiscal Year 2023,
we engaged more than 1,000 prospective interns from more than 135 MSIs, including 19 HBCUs.
WE CONTINUE TO FOCUS on supporting and fostering an environment of inclusion where our colleagues can feel safe
and secure, the very heart of what we stand for as a company. We provide numerous avenues for employees to voice
concerns, including open forums with our company management teams as well as an anonymous reporting hotline.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 25

EMPLOYEE BENEFITS & COMPENSATIONEMPLOYEE BENEFITS
AND WELLNESS OFFERINGS*HEALTHMEDICAL
DENTALMEDICAL AND PRESCRIPTION DRUGSTELADOCVISIONWELLNESSWEALTH/INCOME
401K
ACCIDENT PLAN
CRITICAL ILLNESS PLAN
DISABILITY INSURANCEIDENTITY THEFT
LIFE AND AD&D INSURANCE

WORK/LIFE
ALTERNATIVE WORK SCHEDULEEDUCATION AND TUITIONASSISTANCE PROGRAMSEMPLOYEE ASSISTANCE PROGRAMTRAVEL ASSISTANCE

ADDITIONAL
BENEFITS AND PROGRAMSBRAVO! –EMPLOYEE RECOGNITION PROGRAMCOMPANY SPONSORED EVENTSEMPLOYEE DISCOUNTSEMPLOYEE REFERRAL PROGRAMAEROVIRONMENT IS COMMITTED to providing ourworkforce with competitive benefits and salaries
and investing in the physical, emotional, and financial
health of our workforce. Our compensation policies
and packages are regularly reviewed and adjusted
as needed to ensure alignment and provide greatertransparency for our employees. All employees
participate in an annual incentive bonus program.
EXECUTIVE LEADERSHIP COMPENSATION IS overseen
and determined by the Compensation Committee of theBoard of Directors in accordance with its Compensation
Committee Charter. The Compensation Committee
retains an independent compensation consultant toassist it in making compensation decisions regarding
our executive officers. Details regarding CEO and
Named Executive Officers (NEO) compensation is madeavailable through the annual proxy statement (DEF
14A) as required by the U.S. Securities and Exchange
Commission (SEC) and is available on our website. In
2023, our CEO received $750,000 USD as a base salary.
In Fiscal Year 2023, the annual total compensation
ratio of median employee to CEO was 44.9:1. Additional
information including AeroVironment’s Clawback Policy,
as well as short- and long-term incentive details, arealso included in the annual proxy statement.
OUR COMPREHENSIVE HEALTH PLANS, benefit
coverage, and wellness options promote and support
the wellbeing of our employees and their families.
Our financial wellness benefits include tools to help
our employees build their wealth, protect their mostvaluable assets, and plan for retirement. Additionally,
we offer a variety of other programs to support ouremployees’ diverse personal and career aspirations.
AEROVIRONMENT CONTINUES TO OFFER an alternative
work schedule to U.S.-based employees to support theirwork life balance and flexibility where permissible. The
alternative work schedule reflects a 9/80 scheduleduring which employees work 80 hours in a two-weekperiod over nine days instead of the traditional 10-day
period. Additionally, AeroVironment partners with Office
Depot® to meet our employees’ ergonomic needs whileworking remotely to optimize their workstation comfort,
productivity, and safety.
We host monthly online benefits Q&A sessions to help
our employees take full advantage of the variety of
benefits made available to them. Our blog, “Wellbeing,”
offers additional resources and ideas to help employees
develop and maintain their health holistically.

FOR MORE INFORMATION, PLEASE VISITOUR BENEFITS AND COMPENSATION WEBPAGE.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 26

COMMUNITY OUTREACHAEROVIRONMENT CONTINUES TO BE inspired by the idea of serving society in new and creative ways. Our colleagues
have engaged with local communities through a number of activities and engagements over the course of the past
year. We are proud to be viewed positively in the areas we operate. Through our corporate social responsibility
program, IMPACT!, we focus on programs which promote science, technology, education, and math (STEM); fooddrives; recycling programs; and military and veterans’ organizations.

AEROVIRONMENTSPONSOREDCOMMUNITY
EVENTS
AeroVironment engages with local communities throughsponsored events and organizations including:○ 2022 CHAMPIONS OF EDUCATIONADVOCATE SPONSOR○ 2022 BOYS/GIRLS CLUB GOLF CLASSIC○ 2022 RIDE FOR THE RED SPONSORSHIP○ WHITE HEART FOUNDATION○ MILITARY TRIBUTE GALA HONORING
AFGHANISTAN WAR VETERANS○ CITY OF SIMI VALLEY YOUTHCOUNCIL (561967)○ OAK PARK HIGH SCHOOL ROCKETRY
CLUB SPONSORSHIP○ SIMI SUNSET ROTARY CLUB ANNUAL
FESTIVAL○ WINGS OVER CAMARILLO STEM PAVILION○ GRACE BRETHERAN ELEMENTARY SCHOOLROBOTICS PROGRAM○FOR THE TROOPS HEROES GOLF
TOURNAMENT

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 27

APPENDICESAPPENDIX A: SASB INDEX

Below is AeroVironment’s response to the SASB Aerospace Defense Standard

Topic
EnergyManagement
Hazardous
Waste
Management

Data
Security

Product
SafetyFuel Economy &Emissions in
Use-phase

Materials
Sourcing

Business
EthicsMetricCode

Response(1)Total Energy consumed(2) Percentage Grid Electricity(3) Percentage renewable

RT-AE-130a.1(1) 9,000,000 kWh*(2) 100%*(3) >30% of electricity sourced from utility providers wasfrom renewable sources.
*Omission: Data is not inclusive of Telerob facilities.

(1) Amount of hazardous waste generated(2) Percentage recycled

RT-AE-150a.1

AeroVironment does not collectthis information on a consolidated level.

(1) Number and aggregate quantity reportablespills(2) Quantity recovered

RT-AE-150a.2(1) 0 spills(2) N/A(1) Number of data breaches(2) Percentage involving confidential
information

RT-AE-230a.1

AeroVironment considers the information to be business
confidential.

Description of approach to identifying andaddressing security risks in:(1) Company operations(2) Products

RT-AE-230a.2

Refer to the Information Security and Data Privacy
section(1) Number of recalls issued(2)Total units recalled

RT-AE-250a.1(1) 0 recalls issued(2) 0 units called(1) Number of counterfeit parts detected(2) Percentage avoided

RT-AE-250a.2(1) 0 counterfeit parts detected(2) N/A(1) Number of Airworthiness Directives
received(2) Total units affected

RT-AE-250a.3

Metrics are not applicable to AeroVironment’s business.
Airworthiness Directives are not currently relevant to ourbusiness or impactful to our business units.

Total amount of monetary losses as a resultof legal proceedings associated with productsafetyRT-AE-250a.4$0, AeroVironment did not receive any monetary losses
as a result of legal proceedings associated with productsafety.

Revenue from alternative energy-related
products

RT-AE-410a.1

80% - all company products except our MUAS are battery
powered.

Description of approach and discussionof strategy to address fuel economy andgreenhouse gas (GHG) emissions of products

RT-AE-410a.2

Refer to the Environmental Managementand Energy Efficiency sections

Description of the management of risks
associated with the use of critical materials

RT-AE-440a.1

Refer to the Responsible Business Operations section

Total amount of monetary losses as a result oflegal proceedings associated with incidents ofcorruption, bribery, and/or illicit international
trade

RT-AE-510a.1$0

Revenue from countries ranked in the “E”
or “F” Band of Transparency International’s
Government Defense Anti-Corruption Index

RT-AE-510a.2

A number of our products and related services are soldto organizations within the U.S. Department of Defense(DoD) and to international allied governments, werecognize the sensitive nature of providing detailed unit
sales information. Therefore, we will not be disclosing
such confidential business information.

Discussion of processes to manage businessethics risks throughout the value chain

RT-AE-510a.3

Refer to the Responsible Business Operations section

Production by reportable segment

RT-AE-000.A

A number of our products and related services are soldto organizations within the U.S. Department of Defense(DoD) and to international allied governments, werecognize the sensitive nature of providing detailed unit
sales information. Therefore, we will not be disclosing
such confidential business information.

Number of global employees

RT-AE-000.B

1,279

Activity
MetricAeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 28

APPENDIX B: PERFORMANCE DATA
Table 1. Supply Chain
Metric2023

Number of suppliers

1,200

Supplier spend with small business (U.S. dollars)$51,400,000

Supplier spend with minority-owned business (U.S. dollars)$1,900,000

Supplier spend with female-owned businesses (U.S. dollars)$2,000,000

Table 2. Product Audits
Metric2023

Quality Management System Audits

10

Environmental Metrics (US Operations)
Metric2023

Total energy consumption (kWh)9,000,000

Non-Renewable electricity consumption

4,900,000

Renewable electricity consumption

2,300,000

Natural gas energy consumption

1,800,000

Percentage of grid supplied electricity

100%

Percentage of renewable electricity consumed out of total energy use> 30%

Water withdrawal (m3)

14,000

Table 3. Board Composition and Diversity
Metric2023

Independent

6

Board of Directors by Age
Under age 30

0Between ages 30-50

0Over age 50

7

Board Diversity
Female2

Male5

Members of underrepresented racial/ethnic groups

1

Veteran2

Table 4. Team Member Demographics
Metric2023

Number of team members globally

1,279Team Members by Employment Contract
Percent Full-time Employees

99%

Percent Part-time Employees

1%Global Workforce by Function
Administrative

255

R&D and Engineering

408

Operations

548

Sales and Marketing

68

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 29

Table 5. Team Member Diversity
Metric2023

United States Team Members by Age
Under age 30

161

Between ages 30-50

405Over age 50

603

United States Team Member Diversity
Female

243

Male

926

Not Disclosed

0

Table 6. Tenure
Metric2023

Tenure of the Board of Directors
0-5 years on Board2

6-10 years on Board

5

11-15 years on Board

0

Percent Tenure of Employees
0-2 years29%

2-5 years

42%

6-10 years

11%

11-15 years

10%

16-20 years

6%

Greater than 20 years

2%

Table 7. U.S. Employee Turnover
Metric2023

Employees hired

228

Employees terminated or retired

227

Table 8. Training and Development
MetricPercent of employees completed required annual trade complianceawareness training
		

2023
98%*

* Percent training completed as of June 2023

© 2023 AEROVIRONMENT, INC. All rights reserved. Any and all third-party companies and organizations and their respective service and trademarks set forth herein
are not affiliated with, endorsing, guaranteeing or sponsoring AeroVironment, or any AeroVironment affiliate’s products or services. Any and all such third-party
service and trademarks set forth herein are the intellectual property of their respective owners.

AeroVironment, Inc. // 2023 CORPORATE SOCIAL RESPONSIBILITY REPORT // pg. 30